Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — 1H FY2017 Earnings Presentation
30 slides from Fuyo General Lease's earnings presentation, Nov 9, 2017
Slide 1: Financial Results Briefing for the 1st half of FY2017
Financial Results Briefing for the 1st half of FY2017 IR Presentation November 9, 2017 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. Operating results forecast and dividend policy 5. Appendix Earnings forecasts and other forward-looking statements provided in this material
Slide 3: 1H FY2017 results
1. Overview of consolidated operating results (1) 1H FY2017 results (¥100 million) FY2016 FY2017 YoY YoY change change 1H results 1H results (amount) (%) Total revenues 2,449 3,026 +577 +23.6% Profit before interest expenses (*1) 306 348 +42 +13.7% Gross profit 270 312 +42 +15.6% Operating profit 14
Slide 4: Total revenues, ordinary profit and profit attributable to owners of parent
1. Overview of consolidated operating results (2) Total revenues Ordinary profit and profit attributable to owners of parent ・ Total revenues continued to grow driven by an Profits reached record highs for 1H supported by increase in lease assets an increase in profit before interest expenses, ・ Rev
Slide 5: Factors affecting ordinary profit
1. Overview of consolidated operating results (3) Factors affecting ordinary profit ・The sharp growth in profit before interest expenses (+¥4.2 billion) was mainly attributable to an increase in lease earnings and the consolidation of Accretive Co., Ltd. Increase in (¥100 million) profit before inte
Slide 6: Profit before interest expenses
1. Overview of consolidated operating results (4) Profit before interest expenses [Leases segment] Asset balance and gross margin on assets ・ In the Leases segment, profit continued to grow supported by (¥100 million) (%) an increase in operating assets ・ In the Financing segment, the consolidation
Slide 7: Changes in funding
1. Overview of consolidated operating results (5) Changes in funding ・The funding balance increased in conjunction with growth in operating assets ・Funding costs continued to decline, and interest expenses were kept in check (¥100 million) Funding balance 18,997 (¥100 million) 18,509 903 1,002 Inter
Slide 8: Changes in costs; changes in net assets and equity ratio
1. Overview of consolidated operating results (7) Changes in net assets and (6) Changes in costs equity ratio Amid growth in newly executed contract volume and Net assets increased in a stable fashion, and the operating assets, costs were kept within a certain level equity ratio held at the 10% leve
Slide 9: Newly executed contract volume and operating assets
2. Overview of business activities (1) Newly executed contract volume (2) Operating assets ・ In the Leases segment, building and aircraft Lease assets continued to expand. leasing operations were strong, rising 9.2% The policy for the “Financing, Other” segment is to ・ The “Financing, Other” segment
Slide 10: Overview of business activities
2. Overview of business activities (3) Changes in newly executed contract (4) Newly executed lease contracts volume volume (by type of equipment) Volume has consistently tracked highly above the Growth was driven by transportation equipment industry average (Japan Leasing Association data) (aircraft
Slide 11: Frontier Expansion 2021 Medium-term Management Plan
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Medium-term Management Plan Frontier Expansion 2021 “Going 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 (Target Performance Indicators)
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (1) Goals (Target Performance Indicators) Target Value Interim Goal 1H FY2017 Indicator FY2021 FY2019 results ¥2,300-¥2,400 ¥2,081.3 Operating assets ¥2,500 billion billion billion ROA 2.0% 1.7-1.8% 1.83% ¥1
Slide 13: The core strategies
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (2) The 3 core strategies 1) Selection and Concentration Strategic Areas in Strategic Areas 2) Challenge the Frontier Frontier 3) Pursue Group Synergies Group 13
Slide 14: Schematic representation of strategies
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (3) Schematic representation of strategies Ordinary Profit 3 Core Strategies Target ¥50.0bn Challenge the New Frontier Business strategy Strategic Areas domains Overseas Selection and Concentration Aircraft
Slide 15: Strategic Areas: Real Estate (1)
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (4) 1. Real Estate Areas (¥100 million) (%) 4.0 Operating assets expanded steadily toward our Operating assets and ROA 5-year target target supported in part by contracts for large (real estate lea
Slide 16: Strategic Areas: Real Estate (2)
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (4) 2. Real Estate Areas Scheme Expansion Market Expansion Increase in contracts Proposal- stemming from proposals Increase in bridge- based involving provision of type transactions selling land in
Slide 17: Energy/Environment
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (5) Energy/Environment Areas Operating assets and ROA of the solar power [Solar Power Generation Business] generation business within Energy/Environment (%) 20.0 1) Operating mega-solar plants in 2
Slide 18: Medical/Social Welfare
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (6) Medical/Social Welfare Areas Topics in 1H FY2017 Stepping up initiatives in the medical field —Initiatives involving cooperation with partners focused on business tie-ups and investment— 1) Inv
Slide 19: Aircraft
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (7) Aircraft Areas (¥100 million) 5-year (%) Topics in 1H FY2017 4.0 Aircraft leasing target operating assets and ROA 1) Arranged leases for five self-owned aircraft, 2,800 3.5 and increased total
Slide 20: Overseas
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (8) Overseas Areas Overseas = Business of overseas subsidiaries excluding aircraft leasing Expansion including inorganic growth, (¥100 million) (%) mainly in North America and Asia Overseas busines
Slide 21: New Domains - Accretive Business
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (9) New Domains - 1) Accretive Business Frontier Topics in 1H FY2017 Flex Payment Service Flex Payment Service (FPS) (early payment of accounts (FPS) Medical receivable) (early payment of medical and nursing
Slide 22: New Domains - Frontier topics in 1H
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (9) New Domains - 2) Frontier Used assets Topics in 1H FY2017 Expanded Tokyo 3R Center, a core Collaborations and investment disposal site for used assets Riverfield Inc., developer and Support for manufactu
Slide 23: Pursue Group Synergies
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (10) Pursue Group Synergies Group Products Fuyo Auto Fuyo Sharp and Accretive Lease General Finance services Lease (functions) Started cross-selling ・ Established an Auto initiatives in earnest Sharp Finance
Slide 24: FY2017 consolidated operating results forecast
4. Operating results forecast and dividend policy (1) FY2017 consolidated operating results forecast (¥100 million) FY2017 1H FY2017 forecast Total revenues 3,026 5,300 Operating profit 175 310 Ordinary profit 188 330 Profit attributable to owners of parent 117 205 Basic earnings per share ¥387.59 ¥
Slide 25: FY2017 dividend policy
4. Operating results forecast and dividend policy (2) FY2017 dividend policy Interim dividend was ¥68 (in line with initial forecast) Forecast annual dividend of ¥136 (no change from initial forecast) (Yen) Change in dividend 136 68 130 100 80 70 74 66 68 58 62 50 54 43 33 25 05/3 06/3 07/3 08/3 09/
Slide 26: Summary of consolidated operating results
5. Appendix (1) Summary of consolidated operating results (¥100 million) 1H 1H 1H 1H 1H Year on FY2013 FY2014 FY2015 FY2016 FY2017 year Total revenues 2,120 2,255 2,484 2,449 3,026 +577 Total costs 1,879 2,012 2,223 2,179 2,714 +535 Interest expenses 34 32 33 36 36 -0 Gross profit 241 243 262 270 31
Slide 27: Newly executed contract volume
5. Appendix (2) Newly executed contract volume (¥100 million) YoY change YoY 1H 1H 1H 1H 1H (amount) change (%) FY2013 FY2014 FY2015 FY2016 FY2017 (1H FY2016 to (1H FY2016 to 1H FY2017) 1H FY2017) Leases 1,799 1,778 2,081 2,570 2,807 +237 +9.2% Finance leases 1,671 1,624 1,759 2,061 2,191 +130 +6.3%
Slide 28: Operating assets
5. Appendix (3) Operating assets (¥100 million) YoY YoY change 1H change (%) FY2013 FY2014 FY2015 FY2016 (amount) (FY2016 to FY2017 (FY2016 to 1H FY2017) 1H FY2017) Leases 11,528 11,765 12,440 13,698 14,129 +431 +3.1% Finance leases 9,680 9,649 10,060 10,486 10,817 +331 +3.2% Operating leases 1,848
Slide 29: Non-consolidated results and principal consolidated companies' results
5. Appendix (4) Overview of non-consolidated results and principal consolidated companies’ results (¥100 million) Fuyo General Lease Co., Ltd. Fuyo Auto Lease Co., Ltd. Sharp Finance Corporation Accretive Co., Ltd. (Non-consolidated) (Ownership ratio: 100%) (Ownership ratio: 65%) (Ownership ratio: 5
Slide 30: "Going Where No One Has Gone Before"
“Going Where No One Has Gone Before” 30