Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — 1H FY2016 Earnings Presentation
24 slides from Fuyo General Lease's earnings presentation, Nov 9, 2015
Slide 1: Financial Results briefing for the 1st half of FY2016
Financial Results briefing for the 1st half of FY2016 IR Presentation November 9, 2015 FUYO GENERAL LEASE CO., LTD. 1
Slide 2: Agenda
Agenda 1. Overview of consolidated operating results 2. Overview of business activities 3. Progress of “Value Creation 300” Medium-term Management Plan 4. Operating results forecast and dividend policy 5. Appendix Earnings forecasts and other forward-looking statements provided in this material are
Slide 3: 1H FY2016 results and progress
1. Overview of consolidated operating results 1H FY2016 results and progress (¥100 million) YoY YoY FY2015 1H FY2016 1H FY2016 Progress change change results results forecast ratio (amount) (%) Total revenues 2,255 2,484 +229 +10.2% 5,000 49.7% Gross profit before deducting 275 295 +20 +7.1% interes
Slide 4: Changes in total revenues, ordinary income, and profit attributable to owners of parent
1. Overview of consolidated operating results Changes in total revenues, ordinary income, and profit attributable to owners of parent Total revenues Total revenues have continued to increase since 1H FY2009 on sustained growth of lease operating assets Ordinary income and profit Decline in profitabi
Slide 5: Factors affecting ordinary income
1. Overview of consolidated operating results Factors affecting ordinary income ・ Gross profit before deducting interest expenses up ¥2.0 billion, but personnel and equipment expenses up ¥300 million ・Reversal of allowance for credit-related costs had ¥400 million negative impact on profit year on y
Slide 6: Gross profit before deducting interest expenses
1. Overview of consolidated operating results Gross profit before deducting interest expenses In Leases segment, gross profit before deducting Gross profit before deducting interest expenses interest expenses bottomed in 1H FY2015 and is in Leases segment was trending down for trending up. Increase
Slide 7: Factors affecting gross profit before deducting interest expenses
1. Overview of consolidated operating results Factors affecting gross profit before deducting interest expenses Improved gross margin on assets was main Growth in asset balance was main reason for factor contributing to gross profit before increase in gross profit before deducting deducting interest
Slide 8: Changes in costs; Changes in net assets and equity ratio
1. Overview of consolidated operating results Changes in net assets and Changes in costs equity ratio Personnel and equipment expenses rose Stable increase of net assets; maintaining slightly and interest expenses was flat (lower yield on funds raised) amid increases in newly equity ratio at around
Slide 9: Newly executed contract volume and Operating assets
2. Overview of business activities Newly executed contract volume Operating assets Newly executed contract volume grew Financing business (Loans, Other 10.6%, up 17% in Leases segment after segment) reached medium-term plan year-ago decline due to Consumption target of ¥440 billion in operating asse
Slide 10: Changes in newly executed contract volume; Newly executed lease contracts
2. Overview of business activities Changes in newly executed Newly executed lease contracts contract volume volume (by type of equipment) Volume consistently above industry average ・Transportation equipment and medical devices, which (Japan Leasing Association data) regardless of declined in 1H FY20
Slide 11: “Value Creation 300” Medium-term Management Plan: Key Strategy Overview
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan “Value Creation 300” Medium-term Management Plan Key Strategy Overview Solutions and Value Creation Business Strategies 1 Strengthen profit-generating potential through problem solving and creation of added value Stre
Slide 12: Value Creation 300: Targets and progress
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan “Value Creation 300” Medium-term Management Plan Targets and progress (¥100 million) Operating assets 20,000 400 Target Progress ratio halfway through the 18,500 plan is 72% of the three-year target of At start 17,271
Slide 13: Aircraft business
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Aircraft business Accelerating arrangement of self-owned lease aircraft ・Leased two B737-800 aircraft to Skynet Asia Airways in 1H 2016, increasing self-owned fleet to ・October 2015 10 aircraft and operating 72 aircra
Slide 14: Financing business
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 Financing business Increasing operating assets while Financing business (Loans, Other maintaining a diversified business portfolio segment) attained March 2017 medium- term plan target 18 months ahead of Breakdown at
Slide 15: Overseas business and Renewable energy
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Overseas business Renewable energy ・Twenty-three mega-solar plants developed as own Progress ratio toward March 2017 business in operation, including one that started up target of ¥40.7 billion in operating in October
Slide 16: Real estate leasing
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Real estate leasing Lease contract volume surpassed the Topics in 1H FY2016 medium-term plan target in FY2015 and ・New contract with large shopping center remained brisk in 1H FY2016, up on 1H ・Extended contract with
Slide 17: Retail business (Sharp Finance) and Accounting services business
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 Retail business (Sharp Finance) Accounting services business Lease contract volume in office equipment Development of lease accounting system with lease business grew year on year, but total SAP offering automated lin
Slide 18: Summary of seven strategic business areas
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Summary of seven strategic business areas The seven strategic business areas are generally making good progress toward March 2017 targets. The financing and real estate leasing businesses have already attained March 2
Slide 19: FY2016 consolidated operating results forecast
4. Operating results forecast and dividend policy FY2016 consolidated operating results forecast (¥100 million) 1H FY2016 FY2016 forecast Total revenues 2,484 5,000 Operating income 138 260 Ordinary income 166 280 Profit attributable to owners of parent 102 160 Profit attributable to owners of paren
Slide 20: FY2016 dividend policy
4. Operating results forecast and dividend policy FY2016 dividend policy ・ Second-quarter dividend payment of ¥48, ¥5 more than the initial forecast of ¥43 ・ Plan to pay an annual dividend of ¥96, ¥10 more than the initial forecast of ¥86 (yen) 96 48 Forecast 80 74 70 66 62 58 54 50 48 43 33 25 05/3
Slide 21: Appendix (1) Summary of consolidated operating results
5. Appendix (1) Summary of consolidated operating results (¥100 million) 1H 1H 1H 1H 1H Year on FY2012 FY2013 FY2014 FY2015 FY2016 year Total revenues 2,137 2,181 2,120 2,255 2,484 +229 Total costs 1,870 1,928 1,879 2,012 2,223 +210 Interest expenses 36 34 34 32 33 +1 Gross profit 267 253 241 243 26
Slide 22: Appendix (2) Newly executed contract volume
5. Appendix (2) Newly executed contract volume (¥100 million) YoY YoY 1H 1H 1H 1H 1H amount change FY2012 FY2013 FY2014 FY2015 FY2016 change (%) Leases 1,678 1,950 1,799 1,778 2,081 +303 +17.0% Finance leases 1,439 1,781 1,671 1,624 1,759 +136 +8.3% Operating leases 239 168 127 154 321 +167 +108.6%
Slide 23: Appendix (3) Operating assets
5. Appendix (3) Operating assets (¥100 million) YoY YoY 1H FY2012 FY2013 FY2014 FY2015 amount change FY2016 change (%) Leases 10,781 10,986 11,528 11,765 11,907 +142 +1.2% Finance leases 9,077 9,206 9,680 9,649 9,794 +145 +1.5% Operating leases 1,704 1,780 1,848 2,116 2,113 -3 -0.1% Installment sale
Slide 24: Appendix (4) Overview of non-consolidated results and principal consolidated companies
5. Appendix (4) Overview of non-consolidated results and principal consolidated companies (¥100 million) Fuyo General Lease Co., Ltd. Fuyo Auto Lease Co., Ltd. Sharp Finance Corporation (Non-consolidated) (Ownership ratio: 100%) (Ownership ratio: 65%) 1H 1H 1H 1H 1H 1H YoY change YoY change YoY chan