Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — H1 FY2020 Earnings Presentation
31 slides from Mizuho Leasing's earnings presentation, Nov 11, 2020
Slide 1: FY2020 First-Half Financial Results Presentation Materials
FY2020 First-Half Financial Results Presentation Materials November 11, 2020 Mizuho Leasing Co., Ltd.
Slide 2: Table of Contents
Table of Contents Financial Results and Business Performance Overview ・・・ P.2 Status of Sixth Mid-term Management Plan ・・・ P.9 Earnings Forecasts and Dividends ・・・ P.19 Appendix ・・・ P.21 1
Slide 3: Financial Results and Business Performance Overview
Financial Results and Business Performance Overview
Slide 4: Summary of Second-Quarter Results for FY2020
Summary of Second-Quarter Results for FY2020 Amid the harsh business environment impacted by the spread of COVID-19, gross profit before write- offs and funding costs largely remained flat, supported by sales activity that captured customers’ needs. Each income indicator progressed steadily agai
Slide 5: Overview of Financial Results
Overview of Financial Results FY18 FY19 FY20 % Decreased due to concentrated sale of (¥bn) Change properties upon completion of real estate- 1H 1H 1H Change related bridge scheme projects in the same period of the previous fiscal year Revenues 179.8 254.9 228.7 -26.2 -10% Gross profit before write-
Slide 6: Business Performance Overview
Business Performance Overview FY18 FY19 FY20 % (¥bn) Change 1H 1H 1H Change Contract execution volume increased Contract execution 10% y-o-y. 795.0 624.2 685.0 +60.8 +10% – Leasing sales increased, driven by volume information and communications and Leasing and real estate, more than offsetting 26
Slide 7: Contract Execution Volume / Leasing and Installment Sales
Contract Execution Volume / Leasing and Installment Sales Contract execution volume by equipment type FY18 FY19 FY20 % (¥bn) Change 1H 1H 1H Change Executed large projects in the same period Industrial and factory 60.6 87.3 61.7 -25.6 -29% of the previous fiscal year Information and Significantly in
Slide 8: Contract Execution Volume / Financing
Contract Execution Volume / Financing Contract execution volume FY18 FY19 FY20 % (¥bn) Change 1H 1H 1H Change Commercial Short-term commercial distribution finance Distribution Finance / 446.3 254.9 303.2 +48.3 +19% increased Loan, etc. Aircraft 6.4 8.0 3.0 -5.0 -63% Real Estate 60.0 26.2 26.8 +0.6
Slide 9: Funding
Funding Upper limit on the amount of CP issuance was raised from ¥700.0 billion to ¥800.0 billion in order to expand flexible means of raising funds. Funding costs and funding costs ratio both decreased due to lower foreign currency funding interest rates. Interest-bearing debt Funding costs (ra
Slide 10: Status of Sixth Mid-term Management Plan
Status of Sixth Mid-term Management Plan
Slide 11: Overview of Sixth Mid-term Management Plan (FY 2019-2023)
Overview of Sixth Mid-term Management Plan (FY 2019-2023) Providing solutions that contribute to financial and Cooperation with strategic business partners business strategies for all our clients （※1） Enhancing lease financing business by expanding Mizuho Financial Group client base One of the lar
Slide 12: Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan
Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan (FY 2019-2023) Net income attributable Balance in Triple Dividend Aim for 25% to owners of the parent ¥30 billion the global area compared with that at payout ratio or more the end of March 2019 (¥bn) 30.0 Triple Compar
Slide 13: Overview of Sixth Mid-term Management Plan for First-Half of FY2020
Overview of Sixth Mid-term Management Plan for First-Half of FY2020 Summary of First-Half of FY2020 Sales activity empathetic toward customers amid harsh management environment Collaboration and tie-up with Mizuho continued to be strengthened - Contracts steadily increased In terms of focus ar
Slide 14: Business Alliance with Ricoh and Ricoh Leasing
Business Alliance with Ricoh and Ricoh Leasing Started a business alliance with Ricoh and Ricoh Leasing in April 2020 through acquisition of Ricoh Leasing shares. －Ricoh Leasing became the affiliated company with equity method applied Have discussions with the companies with an aim to strengthen
Slide 15: Status of Focus Area: Real Estate
Status of Focus Area: Real Estate Balances Land Leasing / Building Leasing Balances increased as a result of building on Bridge / Leasing Bridge / Investment, etc. high-quality assets, mainly around bridge Financing, etc. (¥bn) scheme projects that captured needs related 450.0 431.9 to customers'
Slide 16: Status of Focus Area: Environment and Energy
Status of Focus Area: Environment and Energy Balances Energy-saving * Balances related to energy saving/power generation investment, etc. equipment, etc. Promoted efforts for renewable energy and Renewable energy (¥bn) balances increased 180.0 169.4 Equity investment in biomass power plants 164.
Slide 17: Status of Focus Area: Medical and Healthcare
Status of Focus Area: Medical and Healthcare Balances Focus efforts on expanding service business in collaboration with domestic medical and Domestic lease/finance nursing care equipment manufacturers *Balances for medical Collaboration with vendors, etc. equipment and medical/ Overseas healthcare
Slide 18: Status of Focus Area: Global
Status of Focus Area: Global Balances While affected by COVID-19, balances Cross-borders, etc. Subsidiaries increased through cooperation with Marubeni Collaboration with Marubeni (included in total) Mizuho Marubeni Leasing made strategic investment in 244.5 Aguas Nuevas S.A., Chile's third-larg
Slide 19: Status of Focus Area: Aircraft
Status of Focus Area: Aircraft Balances Efforts in aircraft area curbed, in view of market Leasing Financing environment Right axis: number of aircrafts (operating leases) (¥bn) (aircrafts) [Aircraft operating leases] 117.4 120.0 • Ratio of narrow body planes : 100% 104.1 • Average age of planes :
Slide 20: Earnings Forecasts and Dividends
Earnings Forecasts and Dividends
Slide 21: Earnings Forecasts and Dividends
Earnings Forecasts and Dividends Each income indicator progressed steadily against full-year forecasts. ― Going forward, we will continue to closely watch the impact of COVID-19 as it remains uncertain. Interim dividend of ¥40/share paid out as forecast at beginning of fiscal year; annual divide
Slide 22: Appendix
Appendix
Slide 23: Company Profile
Company Profile Company Name Mizuho Leasing Company, Limited Address 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Representative Shusaku Tsuhara, President and CEO Establishment December 1, 1969 Listing Tokyo Stock Exchange, 1st Section (Code: 8425) Capital Stock 26,088 million yen (Outstanding shares
Slide 24: Stock Status (As of September 30, 2020)
Stock Status (As of September 30, 2020) Number of shares issued 49,004,000 Major Shareholders Number of shareholders 39,116 Shares Holding Shareholders Held Distribution of shareholders (shareholding ratio) (1,000 shares) Ratio Individuals Mizuho Bank, Ltd. 11,283 23.03% and others 9.9% The
Slide 25: Internal Control System
Internal Control System Mizuho Leasing has established a system to ensure proper execution of business operations, and is operating this system in an effective and appropriate manner. Management structure: 11 directors (incl. 7 outside directors), 4 auditors (incl. 4 outside auditors) ― Appoint
Slide 26: Consolidated Balance Sheet (Assets)
Consolidated Balance Sheet (Assets) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change (¥bn) 2017 2018 2019 2020 (A) 2020 (B) (B) – (A) (B) / (A) Current assets 1,564.7 1,602.4 1,866.6 1,947.3 2,044.6 +97.3 +5.0% Cash and deposits 42.3 30.3 25.9 22.8 16.8 -6.0 -26.3% Investment i
Slide 27: Consolidated Balance Sheet (Liabilities and Equity)
Consolidated Balance Sheet (Liabilities and Equity) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change (¥bn) 2017 2018 2019 2020 (A) 2020 (B) (B) – (A) (B) / (A) Current liabilities 1,045.8 1,082.1 1,294.2 1,314.1 1,537.5 +223.4 +17.0% Short-term borrowings 312.7 270.7 302.2 256.
Slide 28: Consolidated Statements of Income
Consolidated Statements of Income FY16 FY17 FY18 FY19 FY20 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Revenues 181.4 178.4 179.8 254.9 228.7 -26.2 -10.3% Gross profit before write-offs and 21.8 22.2 25.0 28.9 28.4 -0.5 -1.9% funding costs Funding costs 2.6 3.4 4.1 5.0 4.2 -0.8
Slide 29: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income FY16 FY17 FY18 FY19 FY20 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Net income 7.7 6.9 8.9 9.1 13.3 +4.2 +46.6% Unrealized gain on available-for- -1.4 1.6 -0.5 1.6 -2.4 -4.0 - sale securities Deferred gain/loss on derivatives 0.0 -
Slide 30: Gross Profit Before Write-offs and Funding Costs by Segment
Gross Profit Before Write-offs and Funding Costs by Segment FY16 FY17 FY18 FY19 FY20 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Revenues 181.4 178.4 179.8 254.9 228.7 -26.2 -10.3% Leasing and installment sales 175.7 171.9 171.1 246.0 221.7 -24.3 -9.9% Finance 5.3 6.3 7.9 8.4 7.
Slide 31: Inquiries
Inquiries Mizuho Leasing Company, Limited Corporate Planning Department Corporate Communication Division Tel: +81-3-5253-6540 Fax: +81-3-5253-6539 This document contains forecasts and other forward-looking statements that are based on information available at the time of preparation of this document
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