Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — 1H FY2021 Earnings Presentation
39 slides from Fuyo General Lease's earnings presentation, Nov 11, 2021
Slide 1: Financial Results Briefing for the 1st half of FY2021
Financial Results Briefing for the 1st half of FY2021 IR Presentation November 11, 2021 FUYO GENERAL LEASE CO., LTD. 1
Slide 2: Agenda
Agenda 1. Overview of consolidated operating results 2. Overview of business activities 3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan 4. Earnings forecast and dividend policy 5. Next Medium-Term Management Plan (Status and Schedule) 6. Appendix Earnings forecasts and other for
Slide 3: 1H FY2021 results
1. Overview of consolidated operating results (1) 1H FY2021 results ・In addition to the growth in profit before interest expenses mainly in strategic fields, non-operating income (recoveries of receivables, share of profit of entities accounted for using equity method , etc.) also contributed to the
Slide 4: Net sales; ordinary profit and profit attributable to owners of parent
1. Overview of consolidated operating results (3) Ordinary profit and profit (2) Net sales attributable to owners of parent Net sales decreased mainly due to the application of The growth in profit before interest expenses mainly the “Accounting Standard for Revenue Recognition” but in strategic fie
Slide 5: Factors causing the increase in ordinary profit
1. Overview of consolidated operating results (4) Factors causing the increase in ordinary profit ・ Profit before interest expenses*1 increased due to growth in strategic fields, particularly energy and the environment and real estate. ・ Personnel/equipment expenses decreased due to the absence of o
Slide 6: Profit before interest expenses
1. Overview of consolidated operating results (5) Profit before interest expenses ＊１ ＊1 Gross profit before interest expenses ・ In addition to the growth in strategic fields, the strong performance of the Financing business drove the increase in overall profit before interest expenses. ・ In Leases,
Slide 7: Changes in funding
1. Overview of consolidated operating results (6) Changes in funding ・ Actively used corporate bonds against the backdrop of a favorable financing environment. ・ Proactively promoted ESG finance initiatives and issued a sustainability bond (Fuyo CSV Bond). ・ Established the Euro MTN Program (issuanc
Slide 8: Changes in costs; net assets and shareholders' equity ratio
1. Overview of consolidated operating results (8) Changes in net assets and the (7) Changes in costs shareholders’ equity ratio ・ Personnel/equipment expenses decreased, due in ・ Net assets accumulated and shareholders’ equity part to the absence of one-time costs recorded in ratio improved from the
Slide 9: Newly executed contract volume
2. Overview of business activities (1) Newly executed contract volume ・Maintained a certain level of executed volume while being conscious of profitability. ・Executed volume of leases overall increased from the same period of the previous fiscal year due to growth in strategic fields. (¥100 million)
Slide 10: Operating assets, ROA
2. Overview of business activities (2) Operating assets, ROA ・The accumulation of “operating leases” progressed, mainly in real estate and aircraft. ・Despite a decrease in “finance leases” due in part to asset control through liquidation, ROA exceeded 2.0%, the target of the current medium-term mana
Slide 11: Medium-Term Management Plan Frontier Expansion 2021
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan Medium-Term Management Plan Ｆｒｏｎｔｉｅｒ Ｅｘｐａｎｓｉｏｎ 2021 “Go Where No One Has Gone Before” Aiming to be a corporate group that moves into uncharted businesses and continues to expand the frontier 11
Slide 12: Goals and three core strategies
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (1) Goals (target performance indicators) and three core strategies Target performance indicators Target value 1H FY2021 Item FY2021 results Achieved ahead Operating assets of schedule ¥2,500.0 billion ¥2,558.2 billion Surpassed FY
Slide 13: Position of each business
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (2) Position of each business Real Estate×Overseas BPO×ICT Execute the Company’s first real estate Strengthen ICT functions by making lease in Taiwan WorkVision a consolidated subsidiary Disruptive Innovations Sustaining Innovation
Slide 14: Progress on the plan: Operating assets
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (3) Progress on the Medium-Term Management Plan: Operating assets ・The balance of operating assets in strategic areas doubled from the start of the medium- term management plan (FY2016). ・The share of strategic areas in the overall
Slide 15: Progress on the plan: Transitions in contract spread
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (4) Progress on the Medium-Term Management Plan: <Non-consolidated> Transitions in contract spread ＊1 (Ref) ・ Maintained a high spread level by continuing to implement profitability conscious efforts throughout the current medium-t
Slide 16: Real estate (i)
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (5) Real estate (i) Grew existing businesses while expanding new business domains Profitability conscious asset control ●Steadily accumulated operating assets by diversifying deal sources, such as users and alliance partners in the
Slide 17: Real estate (ii)
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (5) Real estate (ii) Bridge share increased due to further collaboration with alliance partners Breakdown of real estate leases by building application Based on operating assets • Percentages are approximate values based on figures
Slide 18: Aircraft
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (6) Aircraft Adapting appropriately to changes in the market environment (¥100 million) (％) 4.0 Aircraft leasing operating assets and ROA Continued prudent business management 1,649 1,692 3.0 ●Increased balance of operating assets
Slide 19: Overseas
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (7) Overseas Business development in the Asian market is progressing (¥100 million) (％) Tangible collaboration in strategic areas 4.0 Overseas business operating assets (*) and ROA ●Accelerated business development focusing on stra
Slide 20: Energy/environment (i)
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (8) Energy/environment (i) Renewable energy generation business: Steady progress in line with the plan (¥100 million) （％） 40.0 Renewable energy business operating asset and ROA Expanded new renewable energy business with alliance p
Slide 21: Promoting PPA-related business initiatives
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (8) Energy/environment (ii) Promoting PPA*-related business initiatives ＊PPA: Power Purchase Agreement 1. Established a joint venture with the Sharp Group for engaging in the PPA business in Thailand ・ Established a joint venture i
Slide 22: Medical/social welfare
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (9) Medical/social welfare Fuyo Lease Platform Concept: Expanded the service provision structure (¥100 million) Creation of a Group-wide website Medical/Social Welfare operating assets (There is overlap with other business fields)
Slide 23: BPO services
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (10) BPO services BPO × ICT Supporting more efficient company business processes through expanding our service functions Made WorkVision a consolidated subsidiary to support the digital transformation of companies ● Established a c
Slide 24: Mobility business
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (11) Mobility business Strengthening collaboration with partners in problem solving Entered into a business alliance with MACNICA for the social implementation of autonomous driving (¥100 million) ●Plan to jointly develop and offer
Slide 25: Climate change initiatives
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (12) Climate change initiatives Declared to achieve carbon neutrality and RE100 by 2030 Steps to addressing climate change Decarbonization Provision of services to of the Group customers and communities 2012 Started renewable energ
Slide 26: Diversity initiatives
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (13) Diversity initiatives Efforts to promote women’s active roles and development of a better working environment Targets (up to end of March 2022) and achievements of our action plan based on the Act on Promotion of Women’s Parti
Slide 27: FY2021 consolidated earnings forecast
４. Earnings forecast and dividend policy (1) FY2021 consolidated earnings forecast (¥100 million) 1H FY2021 FY2021 results forecast Net sales 2,854 6,100 Operating profit 235 465 Ordinary profit 275 500 Profit attributable to owners of parent 181 310 Basic earnings per share ¥602.58 ¥1,033.44 27
Slide 28: Dividend policy
４. Earnings forecast and dividend policy (2) Dividend policy [End of 1H FY2021] Interim dividend payment as initially forecast: ¥130 [End of FY2021] Annual dividend payment forecast unchanged from initial forecast (¥260) (¥) Change in dividend 260 (Forecast) 130 (Forecast) 240 205 188 146 130 130 10
Slide 29: Formulation and schedule of next medium-term management plan
5. Next Medium-Term Management Plan (Status and Schedule) Formulation and schedule of next medium-term management plan ・In the process of formulating the next medium-term management plan, which will start from April 2022 ・Realize both social value and corporate value through a business strategy base
Slide 30: Key topics (i)
6. Appendix (1) Key topics (i) Energy/ environment Business tie-up with Fidea Lease for "Fuyo Zero Carbon City Support Program" New Concluded a business agreement with 3D Printing Corporation, which provides a comprehensive domains solution for 3D printing Energy/ The number of companies and organiz
Slide 31: Key topics (ii)
6. Appendix (1) Key topics (ii) Others Established the Fuyo-Joshibi Venus Fund with the aim of supporting Joshibi University of Art and Design and art students Energy/ environment Established a joint venture with the Sharp Group for selling electric power in Thailand by the PPA Overseas method Energ
Slide 32: Summary of consolidated operating results
6. Appendix (2) Summary of consolidated operating results 1H 1H 1H 1H １H YoY (¥100 million) FY2017 FY2018 FY2019 FY2020 FY2021 Change Sales decreased mainly due to the application of “Accounting Standard for Net sales 3,026 2,957 3,445 3,574 2,854 -720 Revenue Recognition.” The application had no im
Slide 33: Segment results (consolidated)
6. Appendix (3) Segment results (consolidated) ＊1 Gross profit before interest expenses (¥100 million) Leases Installment sales Leases and installment sales total YoY YoY YoY YoY YoY YoY 1H 1H 1H 1H 1H 1H Change Change Change Change Change Change FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 (amount) (%
Slide 34: Newly executed contract volume
6. Appendix (4) Newly executed Contract Volume (¥100 million) YoY Change YoY change 1H 1H 1H 1H 1H (amount) (%) FY2017 FY2018 FY2019 FY2020 FY2021 (1H FY2020 to (1H FY2020 to 1H FY2021) 1H FY2021) Leases 2,807 1,884 3,016 2,173 2,272 99 4.6% Finance leases [2,191] [1,636] [2,066] [1,608] [1,241] [-3
Slide 35: Newly executed lease contract volume by type of equipment
6. Appendix (5) Newly executed lease contract volume (by type of equipment) (¥100 million) Segment 1H FY2019 1H FY2020 1H FY2021 YoY change IT & office equipment 1,199 869 662 -208 Industrial machinery 260 136 92 -44 Civil engineering and construction machinery 52 42 16 -26 Transportation equipment
Slide 36: Operating assets
6. Appendix (6) Operating assets (¥100 million) YoY Change YoY change 1H (amount) (%) FY2017 FY2018 FY2019 FY2020 FY2021 ( FY2020 to ( FY2020 to 1H FY2021) 1H FY2021) Leases 14,744 15,648 16,136 17,133 17,347 213 1.2% Finance leases [10,987] [10,835] [11,068] [10,808] [10,283] [-524] [-4.9%] Operati
Slide 37: Leases and Financing: Asset balance and gross margin on assets
6. Appendix (7) Leases and Financing: Asset balance and gross margin on assets Leases: Asset balance and gross margin on assets Financing: Asset balance and gross margin on assets (¥100 million) (%) (¥100 million) (%) 8,000 5.0 20,000 5.0 7,257 7,168 18,000 17,133 17,347 7,000 6,656 15,648 16,136 4.
Slide 38: Non-consolidated results and principal consolidated companies' results
6. Appendix (8) Overview of non-consolidated results and principal consolidated companies’ results (¥100 million) Fuyo General Lease Co., Ltd. Sharp Finance Corporation Fuyo Auto Lease Co., Ltd. YAMATO LEASE Co., Ltd. (non-consolidated) (ownership ratio: 65%) (ownership ratio: 100%) (ownership ratio
Slide 39: Going Where No One Has Gone Before
“Going Where No One Has Gone Before” FUYO GENERAL LEASE CO., LTD. 39