Nec Capital Solutions Limited · TSE:8793

Nec Capital Solutions — H1 FY2018 Earnings Presentation

26 slides from Nec Capital Solutions's earnings presentation, Nov 1, 2017

1. Slide 1: Briefing Materials on the Financial Results for the 1st Half of FY2018

   Briefing Materials on the Financial Results for the 1st Half of FY2018 November 1, 2017 NEC Capital Solutions Limited

2. Slide 2: © NEC Capital Solutions Limited 2016

   2 © NEC Capital Solutions Limited 2016

3. Slide 3: Contents

   CONTENTS 1. Financial Results for the First Half of FY2018 1）Highlights of Consolidated Financial Statements 2）Business Environment (First Half) 3）Consolidated Financial Summary 4）Consolidated Revenues by Business Segment 5）Contracts Executed by Business Segment (Consolidated) 6）Leasing/Installment

4. Slide 4: 1. Financial Results for the First Half of FY2018

   1. Financial Results for the First Half of FY2018

5. Slide 5: Highlights of Consolidated Financial Statements

   1. Financial Results for the First Half of FY2018 1）Highlights of Consolidated Financial Statements 【Business Environment】 ・Total leasing contracts decreased by 6.3% Y/Y. ・Conditions for procuring funds remained favorable. ・Both the number of bankruptcies and the total liabilities in bankruptcy decr

6. Slide 6: Business Environment (First Half)

   1. Financial Results for the First Half of FY2018 2）Business Environment (First Half) -Leasing Contracts: Total leasing contracts in the industry decreased by 6.3% Y/Y. Our mainstay Information and Communication Equipment leasing decreased by 1.0% Y/Y. -Bankruptcies: The number of bankruptcies in th

7. Slide 7: Consolidated Financial Summary

   1. Financial Results for the First Half of FY2018 3）Consolidated Financial Summary Revenues: Revenue grew 15.9% Y/Y due to proceeds on the sale of investment securities in the RISA business fund. Ordinary Income: Ordinary income was up 158.5% Y/Y due to the strong performance of the RISA business an

8. Slide 8: Consolidated Revenues by Business Segment

   1. Financial Results for the First Half of FY2018 4）Consolidated Revenues by Business Segment ▌Revenues by Business Segment <<Leasing/Installment Sales Business>> ・Revenues decreased by 2.9% Y/Y. (Billions of Yen) Operating income increased 40.2% Y/Y due FY2017 FY2018 to the booking of a reversal of

9. Slide 9: Contracts Executed by Business Segment (Consolidated)

   1. Financial Results for the First Half of FY2018 5）Contracts Executed by Business Segment (Consolidated) ▌Contracts Executed by Business Segment ▌New Transactions by Business Segment (Billions of Yen) (Billions of Yen) FY2017 FY2018 FY2017 FY2018 2Q 2Q Y/Y Change 2Q 2Q Y/Y Change Leasing/ Installme

10. Slide 10: Leasing/Installment Sales Business (Consolidated)

    1. Financial Results for the First Half of FY2018 6）Leasing/Installment Sales Business (Consolidated) ▌Contracts Executed by Customer Sector ▌New Transactions by Customer Sector (Billions of Yen) (Billions of Yen) FY2017 FY2018 FY2017 FY2018 2Q 2Q Y/Y Change 2Q 2Q Y /Y Change Public Sector: Governme

11. Slide 11: Finance Business (Consolidated)

    1. Financial Results for the First Half of FY2018 7）Finance Business (Consolidated) ▌Contracts Executed by Form of Contract ▌Contracts Executed by Customer Sector (Billions of Yen) FY2017 FY2018 (Billions of Yen) 2Q 2Q Y /Y Change FY2017 FY2018 Public Sector: Government&Municipal 0.1 0.5 +341.8% 2Q

12. Slide 12: RISA Business

    1. Financial Results for the First Half of FY2018 8）RISA Business (Billions of Yen) FY2017 2Q FY2018 2Q Y/Y Change Revenues, gross profit, and Asset Business Revenues 1.6 12.1 +670.6% operating income increased Gross profit 1.4 8.6 +500.9% significantly Y/Y Operating income 0.7 7.6 - Real Estate Rev

13. Slide 13: Operating Asset Balances (Consolidated)

    1. Financial Results for the First Half of FY2018 9）Operating Asset Balances (Consolidated) (Billions of Yen) << Operating Asset Balances >> ・ Leasing/Installment Sales Business 800 782.7 745.4 The operating asset balance decreased 727.4 61.1 1.8 billion yen Y/Y. 42.2 49.2 26.7 39.2 37.3 RISA Busine

14. Slide 14: Fund Procurement (Consolidated)

    1. Financial Results for the First Half of FY2018 10）Fund Procurement 資金原価率（%） (Consolidated) ＝資金原価÷有利子負債平残 Funding cost ratio (%)= Cost of ▌Funding Cost Ratio ▌Composition of Interest-bearing Debt funding / Average Balance of (Billions of Yen) 1.0% Interest-bearing debt Sep. Sep. 0.9% 2016 C omposi

15. Slide 15: Credit Costs (Consolidated)

    1. Financial Results for the First Half of FY2018 11）Credit Costs (Consolidated) ・Improved 1.1 billion yen over the previous year. (Billions of Yen) 0.4 0.2 0.2 -0.9 0.3 0.2 0.0 -0.1 -0.1 -0.1 -0.2 Leasing / Installment -0.4 Sales Business Finance Business -0.6 -0.9 RISA Business -0.8 -1.0 Other Bus

16. Slide 16: 2. Forecasts for the Fiscal Year Ending in March 2018 (FY2018)

    2. Forecasts for the Fiscal Year Ending in March 2018 (FY2018)

17. Slide 17: Earnings Forecasts (Consolidated)

    2. Forecasts for the Fiscal Year Ending in March 2018 (FY2018) 1）Earnings Forecasts (Consolidated) ▌Forecast (Billions of Yen) Previous Forecast(Jul.28) Actual Forecast FY2018 FY2018 FY2018 FY2018 (1H) (1H) Revenues 110.0 210.0 111.1 210.0 Operating Income 10.0 11.0 11.0 12.5 Ordinary Income 10.0 11

18. Slide 18: 3. Progress with the Medium-Term Plan in 2017

    ３. Progress with the Medium-Term Plan in 2017

19. Slide 19: Progress with the Medium-Term Plan in 2017: Overview

    3-1. Progress with the Medium-Term Plan in 2017 Overview Build a business foundation that can be sustained by completion of core areas and development of new businesses 【Our group vision】 To be a global solution service company that aims to enhance social value with customers Services unique to our

20. Slide 20: Status of Initiatives 1/2

    3-2. Progress with the Medium-Term Plan in 2017 Status of Initiatives 1/2 1. Complete core areas : Establish services unique to NEC Capital that demonstrates its strengths  Deepen strategic partnerships with NEC  NEC Capital Solutions is participating in a project to construct an undersea cable co

21. Slide 21: Arrangement of Syndicated Loan Facility for Submarine Cable System

    TOPICS(ⅰ) Arrangement of Syndicated Loan Facility for Submarine Cable System Connecting Hong Kong and Guam Project financing has been arranged NEC Capital Solutions’ first project as the lead arranger for overseas project finances. Support, with finance, for NEC’s overseas projects. 21 © NEC Capit

22. Slide 22: Status of Initiatives 2/2

    3-2. Progress with the Medium-Term Plan in 2017 Status of Initiatives 2/2 2. Develop new businesses : Establish sustainable new business models that are unique to NEC Capital, including non-financial businesses.  Establish new business models in new areas (energy, healthcare, agriculture, and touri

23. Slide 23: Progress with Initiatives for New Businesses

    TOPICS(ⅱ) Progress with Initiatives for New Businesses New services that can contribute to regional reconstruction and revitalization＝Develop “New Businesses” Image of new businesses, including non-finance business that are unique to our company Shiretoko New Achievement Energy Energy Healthcare Oga

24. Slide 24: The presentation materials are solely for the purpose of providing corporate information of NEC

    The presentation materials are solely for the purpose of providing corporate information of NEC Capital Solutions Limited and not for soliciting purchase, sale, or investment in securities issued by the Company. We ask for the discretion of investors in making investment decisions. The presentation

25. Slide 25: NEC Capital Solutions Group Vision

    本資料に記載されている株主・投資家向け情報は、投資勧誘・保証を目的として作成された ものではありません。実際に投資を行う際は、ご利用者ご自身のご判断において行われるよ うお願い致します。 本資料に記載されている当社の計画、戦略および業績見通しは、将来の予測であって、リス クや不確定な要因を含んでおります。 また、本資料に記載されている経営目標は予想ではなく、将来の業績に関する経営陣の現在 の予想を反映したものでもありません。むしろ、経営陣が事業戦略の実行を通じて達成しよ うとする目標であります。 NEC Capital Solutions Group Vision 実際の業績等は、さまざまな要

26. Slide 26: Orchestrating a brighter world

    \ Orchestrating a brighter world NEC

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