Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — FY2024 Earnings Presentation
39 slides from Mizuho Leasing's earnings presentation, May 13, 2025
Slide 1: Investor Presentation for FY2024
Investor Presentation for FY2024 Apr. 2024－Mar. 2025 May 13, 2025
Slide 2: Table of Contents
1 Table of Contents 1. Overview of Financial Results for FY2024 2. Progress of Medium-term Management Plan 2025 3. Earnings Forecasts and Shareholder Returns 4. Appendix 1
Slide 3: CEO Message
CEO Message 2 ⚫ Regarding performance in FY2024, we achieved record highs in both ordinary income of ¥66.2 bn and net income of ¥42.0 bn, due to increased profits in core areas of domestic leasing and real estate businesses and in growth areas of overseas and aviation businesses. Achieved the financ
Slide 4: 1. Overview of Financial Results for FY2024
3 1. Overview of Financial Results for FY2024
Slide 5: Summary for FY2024
Summary for FY2024 4 ⚫ Achieved record highs in both ordinary income of ¥66.2 bn and net income of ¥42.0 bn due to increased profits in core areas of domestic leasing and real estate businesses and in growth areas of overseas and aviation businesses. ⚫ Improved gross profit margin by offsetting the
Slide 6: Achieved Financial Targets of Plan 2025
Achieved Financial Targets of Plan 2025 5 ⚫ Net income for FY2024 reached Plan 2025’s target, ¥42.0 bn. ¥700 bn increase in operating assets, ROA and ROE also exceeded Plan 2025’s targets. ⇒ Met all the financial goals set out in Plan 2025, one year ahead of schedule ⚫ Will pay annual dividend of ¥4
Slide 7: Factors behind Changes in Net Income Attributable to Owners of the Parent
Factors behind Changes in Net Income Attributable to Owners of the Parent 6 Gross profit Operating Ordinary (¥bn) +12.7 income income +9.5 +15.3 –8.4 +7.5 –1.7 4.7 GECOSS 358 –7.5 +21.1 –4.0 Negative goodwill (+82) +0.8 –1.0 42.0 276 35.2 (A) (B) (C) (D) (E) (F) FY23 Gross profit before Funding cost
Slide 8: Gross Profit and Operating Assets by Business Area
Gross Profit and Operating Assets by Business Area (Main Businesses on page 12–) 7 ⚫ Domestic Leasing: Gross profit increased steadily due to accumulation of high-grade operating assets, excluding the ¥1.4 bn gain from the cancellation of a large contract in the previous fiscal year. ⚫ Real Estate/E
Slide 9: Equity in Earnings and Losses of Affiliates
Equity in Earnings and Losses of Affiliates (Non−operating Income and Expenses) 8 ⚫ Domestic Leasing: GECOSS, capital and business partner, contributed to earnings and RICOH LEASING improved performance. ⚫ Real Estate/Environment and Energy: Nippon Steel Kowa Real Estate contributed firmly to perfor
Slide 10: Funding
9 Funding ⚫ Funding costs are trending upward due to increase in outstanding interest-bearing debt owing to an increase in operating assets and a continued trend of rising yen interest rates. ⚫ Ensured stable financing through diversified procurement methods, such as Sustainable Financing. Outstandi
Slide 11: 2. Progress of Medium-term Management Plan 2025
10 2. Progress of Medium-term Management Plan 2025 i. Progress of Main Businesses ii. Progress of Business Collaboration with Marubeni iii. Inorganic Growth Strategy iv. Strengthen and Further Enhance Organizational Systems to Support Growth v. Non-Financial Targets
Slide 12: Positioning of Medium-term Management Plan 2025
Positioning of Medium-term Management Plan 2025 11 (Excerpts from Medium-Term Management Plan released on May 12, 2023) ⚫ We position Plan 2025 as a period of aggressive investment of managerial resources into both business and management infrastructure, in order to make great strides towards the re
Slide 13: Progress of Main Businesses (1): Domestic Leasing (i)
ⅰ. Progress of Main Businesses (1): Domestic Leasing (i) Core 12 Our Vision Business Performance (Domestic Leasing) (¥bn) Co-create value as a strategic business partner for Gross profit Earnings from affiliates Operating assets clients 1,500.0 ⚫ Thoroughly implement a value co-creation and problem-
Slide 14: Progress of Main Businesses (1): Domestic Leasing (ii)
ⅰ. Progress of Main Businesses (1): Domestic Leasing (ii) Core × Frontier 13 Initiatives in New Businesses/Promote Circular Economy ⚫ Established "ML ITAD Solution Co., Ltd." to provide new services and value through the ITAD business. - Indispensable for promoting circular economy in IT equipment ⚫
Slide 15: Progress of Main Businesses (2): Real Estate (i)
ⅰ. Progress of Main Businesses (2): Real Estate (i) Core 14 Our Vision Business Performance (Real Estate) (¥bn) Simultaneously expand existing businesses and create Gross profit Earnings from affiliates Operating assets 1,240.0 new ones 50.0 45.0 1,200.0 ⚫ Expand stable profit sources, such as mezza
Slide 16: Progress of Main Businesses (2): Real Estate (ii)
ⅰ. Progress of Main Businesses (2): Real Estate (ⅱ) Core 15 Development and Acquisition of Original Brand Properties Portfolio Malien (Logistics) Based on the balance as of March 31, 2025 Malien Logistics Fukuoka Matsushima Loans Office 7% 6% 21% Equities 8% 12% 31% Residence Overseas funds Logistic
Slide 17: Progress of Main Businesses (3): Environment and Energy (i)
ⅰ. Progress of Main Businesses (3): Environment and Energy (i) Growth 16 Our Vision Business Performance (Environment and Energy) (¥bn) Secure renewable energy sources and create new Gross profit Operating assets 3 160.0 business opportunities 137.8 140.0 ⚫ Secure 1 GW of renewable energy power gene
Slide 18: Progress of Main Businesses (3): Environment and Energy (ii)
ⅰ. Progress of Main Businesses (3): Environment and Energy (ⅱ) Growth 17 Renewable Energy Generation Capacity (Results and Targets) Topics Started Commercial Operation of Grid Storage Battery Stations • Power generation capacity at the end of FY2024 was 708 MW due to a prolonged study period caused
Slide 19: Progress of Main Businesses (4): Global Growth
ⅰ. Progress of Main Businesses (4): Global Growth 18 Our Vision Business Performance (Overseas) (¥bn) 30.0 140.0 Gross profit Earnings from affiliates Operating assets Expand business fields with inorganic investments 105.9 120.0 25.0 ⚫ Expand client base, focusing on major Japanese 20.0 100.0 78.5
Slide 20: Progress of Business Collaboration with Marubeni
ⅱ. Progress of Business Collaboration with Marubeni 19 ⚫ With Marubeni, we are considering over 150 projects in diverse business areas such as real estate, renewable energy, and infrastructure, in both Japan and overseas. ⚫ Achieved over ¥60 bn worth of contract executions. ⚫ Accepted 19 employees f
Slide 21: Inorganic Growth Strategy
ⅲ. Inorganic Growth Strategy 20 ⚫ Plan 2025 allocated ¥150 bn for inorganic investment to expand and scale up business areas in core and growth areas and to create new businesses in frontier areas. Out of this amount, made approximately ¥100 bn in investments. ̶Expanded the Group through M&A to stre
Slide 22: Strengthen and Further Enhance Organizational Systems to Support Growth (i)
21 ⅳ. Strengthen and Further Enhance Organizational Systems to Support Growth (i) ⚫ Plan to move headquarters to a new office in spring 2026. ーUse the headquarters relocation as an opportunity to implement corporate culture transformation. Relocation to New Headquarters Release of New Head Office Im
Slide 23: Strengthen and Further Enhance Organizational Systems to Support Growth (ii)
ⅳ. Strengthen and Further Enhance Organizational Systems to Support Growth (ⅱ) 22 ⚫ Enhance our human capital strategy to "build an optimal human resource portfolio" and "maximize individual strengths.” - Actively investing in employees who will lead the future by implementing next-generation traini
Slide 24: Strengthen and Further Enhance Organizational Systems to Support Growth (iii)
ⅳ. Strengthen and Further Enhance Organizational Systems to Support Growth (ⅲ) 23 ⚫ Strengthen and enhance management foundations to expand our business beyond finance. - Strengthened efforts to improve productivity with the aim of creating opportunities to take on challenges to create new value. -
Slide 25: Non-Financial Targets
ⅴ. Non-Financial Targets 24 ⚫ For the promotion of sustainability management, we will continue to expand renewable energy power generation capacity and promote initiatives to achieve a circular economy. We are also expanding sustainable financing as a funding method. ⚫ Reduction of Scope 1 & 2 CO2 e
Slide 26: 3. Earnings Forecasts and Shareholder Returns
25 3. Earnings Forecasts and Shareholder Returns
Slide 27: Earnings Forecasts for FY2025
Earnings Forecasts for FY2025 26 ⚫ Will continue to invest in human resources and IT systems in the FY2025 in order to strengthen our organizational systems, aiming for further leaps toward growth in the future. ⚫ Forecast net income of ¥43.0 bn for FY2025, offsetting the absence of special factor o
Slide 28: Shareholder Returns
Shareholder Returns 27 ⚫ Plan to ensure stable returns to shareholders through continuous profit growth; Increase the dividend payout ratio to 30% during Plan 2025, while using retained earnings effectively to strengthen our business’ foundations and invest in growth, based on our basic policy to “p
Slide 29: Dividends
Dividends 28 ⚫ In FY2024, increased the dividend by +¥7 due to strong performance, resulting in an annual dividend of ¥47, compared with the initial annual dividend forecast of ¥40. ⚫ For FY2025, forecasting a dividend of ¥48 (interim ¥24, year-end ¥24), based on the expected increase in profit. FY2
Slide 30: Toward Management Conscious of Cost of Capital and Stock Price
(Reference) Toward Management Conscious of Cost of Capital and Stock Price 29 Focus on Improving ROE (ROA) and PER (to Foster Growth Expectations) to Achieve PBR (Price to Book Ratio) of 1x. Issue Measures Present Data ROA Expansion of business transactions with Analysis profitability in mind (Logic
Slide 31: 4. Appendix
30 4. Appendix
Slide 32: Main News & Topics in FY2024 (1/2)
Main News & Topics in FY2024 (1/2) 31 Date Contents Apr. 25, Concluded a capital and business alliance agreement with GECOSS Corporation —Acquired 20.03% of GECOSS Corporation’s shares, a major heavy temporary construction business operator of Inorganic 2024 the JFE Group (making it an equity-method
Slide 33: Main News & Topics in FY2024 (2/2)
Main News & Topics in FY2024 (2/2) 32 Date Contents Purchased shares of Nippon Steel Kowa Real Estate Co., Ltd. and conducted a capital and business alliance Apr. 24, agreement Real estate 2025 —Aim to establish a stable capital relationship and expand opportunities for collaboration where both comp
Slide 34: Consolidated B/S (Assets)
Consolidated B/S (Assets) 33 YoY YoY End−Mar. End−Mar. End−Mar. End−Mar. End−Mar. （¥bn） Change % Change 2021 2022 2023 2024 (1) 2025 (2) (3) = (2)−(1) (3) / (1) Current assets 2,085.1 2,166.7 2,279.7 2,378.1 2,542.5 ＋164.4 ＋7% Cash and deposits 21.1 25.3 34.0 56.7 68.1 ＋11.4 ＋20% Investment in lease
Slide 35: Consolidated B/S (Liabilities and Equity)
Consolidated B/S (Liabilities and Equity) 34 YoY YoY （¥bn） End−Mar. End−Mar. End−Mar. End−Mar. End−Mar. Change % Change 2021 2022 2023 2024 (1) 2025 (2) (3) = (2)−(1) (3) / (1) Current liabilities 1,492.9 1,548.4 1,573.5 1,715.2 1,991.9 ＋276.7 ＋16% Short−term borrowings 317.8 380.3 418.4 524.1 711.9
Slide 36: Consolidated P/L
Consolidated P/L 35 YoY YoY FY2023 FY2024 （¥bn） FY2020 FY2021 FY2022 Change % Change (1) (2) (3) = (2)−(1) (3) / (1) Revenues 497.9 554.8 529.7 656.1 695.4 ＋39.3 ＋6% Gross profit before funding costs 59.3 62.1 72.3 91.2 112.3 ＋21.1 ＋23% Funding costs 8.0 7.6 10.9 17.6 26.0 ＋8.4 ＋48% Gross profit 51.
Slide 37: Gross Profit before Funding Costs by Business Area
Gross Profit before Funding Costs by Business Area 36 YoY YoY FY2023 FY2024 （¥bn） FY2020 FY2021 FY2022 Change % Change (1) (2) (3) = (2)−(1) (3) / (1) Revenues 497.9 554.8 529.7 656.1 695.4 ＋39.3 ＋6% Leasing and installment sales 482.9 537.8 505.2 621.0 645.4 ＋24.4 ＋4% Finance 15.4 17.4 25.2 36.1 43
Slide 38: Newly Executed Contract Volume by Business Area
Newly Executed Contract Volume by Business Area 37 Leasing and Installment Sales Segment YoY YoY FY2023 FY2024 （¥bn） FY2022 Change % Change (1) (2) (3) = (2)−(1) (3) / (1) Information and communications 115.4 88.4 162.1 ＋73.7 ＋83% Real estate 157.4 332.9 493.4 ＋160.5 ＋48% Industry and factory 76.0 9
Slide 39: Contact
Contact Investor Relations Division Financial Planning Department Mizuho Leasing Company, Limited Tel: +81-3-5253-6540 This document contains forecasts and other forward−looking statements that are based on information available at the time of preparation of this document and subject to certain risk
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