Nec Capital Solutions Limited · TSE:8793
Nec Capital Solutions — FY2021 Earnings Presentation
24 slides from Nec Capital Solutions's earnings presentation, Apr 27, 2021
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2021 (FY2021)
Financial Results Briefing for the Fiscal Year Ended March 31, 2021 (FY2021) April 27, 2021 NEC Capital Solutions Limited © NEC Capital Solutions Limited 2021
Slide 2: Orchestrating a brighter world
\ Orchestrating a brighter world NEC creates the social values of safety, securi fairness and efficiency to promote a more sustai where everyone has the chance to reach thei
Slide 3: Contents
CONTENTS 1. Consolidated Financial Results for FY2021 1) Highlights of Financial Statements 2) Business Environment 3) Financial Summary 4) Revenues by Business Segment 5) Contracts Executed by Business Segment 6) Leasing/Installment Sales Business 7) Finance Business 8) RISA Business 9) Operating A
Slide 4: 1. Consolidated Financial Results for FY2021
1. Consolidated Financial Results for FY2021
Slide 5: 1) Highlights of Financial Statements
1) Highlights of Financial Statements Business Environment • Total leasing contracts decreased by 14.1% Y/Y. • We will have to closely monitor trends in the financing environment and bankruptcies as a result of the spread of the COVID-19. Results in Key Business Units • Although the Leasing/Installm
Slide 6: 2) Business Environment
2) Business Environment • Total Leasing Contracts: Total leasing contracts in the industry overall fell 14.1% Y/Y and dropped 8.8% compared to two years ago due to the effect of COVID-19. Our mainstay Information and Communication Equipment leasing fell 14.2% Y/Y, but was up 5.2% compared to two yea
Slide 7: 3) Financial Summary
3) Financial Summary • Revenues: Revenue was in line with the previous year because, although revenue fell Y/Y in the RISA business, it rose in the Leasing/Installment Sales business, among other factors. • Ordinary Income: Ordinary income fell 33.0% Y/Y primarily due to large-scale projects in the
Slide 8: 4) Revenues by Business Segment
4) Revenues by Business Segment Revenues by Business Segment Leasing/Installment Sales Business Revenues by Business Segment • Revenue and gross profit rose over the previous year as a result (Billions of Yen) of an increase in the operating asset balance. FY2020 FY2021 Y/Y Change • Operating inco
Slide 9: 5) Contracts Executed by Business Segment
5) Contracts Executed by Business Segment Contracts Executed by Business Segment New Transactions by Business Segment (Billions of Yen) (Billions of Yen) FY2020 FY2021 FY2020 FY2021 Y/Y Change Y/Y Change Leasing/ Installment Sales Business 238.5 239.1 +0.3% Leasing/ Installment Sales Business 24
Slide 10: 6) Leasing/Installment Sales Business
6) Leasing/Installment Sales Business Contracts Executed by Customer Sector New Transactions by Customer Sector (Billions of Yen) (Billions of Yen) FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 Y/Y Change Y/Y Change Public Sector: Government agencies and Municipalities 109.3 138.8 157.2 +13.2% Publi
Slide 11: 7) Finance Business
7) Finance Business Contracts Executed by Form of Contract Contracts Executed by Customer Sector (Billions of Yen) FY2020 FY2021 (Billions of Yen) Y/Y Change FY2020 FY2021 Public sector: Government Y/Y Change agencies and Municipalities 1.1 1.7 +48.5% Reimbursements,APF, Installment Sales Transa
Slide 12: 8) RISA Business
8) RISA Business Revenues by Business Segment Although both revenues and (Billions of Yen) income were down Y/Y due to FY2020 FY2021 Y/Y Change large-scale projects in the Asset Business Revenues 10.3 5.1 -50.8% previous year, the operating loss Gross profit 5.2 3.7 -29.1% in Q3 was cleared. Opera
Slide 13: 9) Operating Asset Balances
9) Operating Asset Balances (Billions of Yen) Leasing/Installment Sales Business 1,200 • The operating asset balance grew in both the public and private sectors as we attracted 1,000 953.8 demand for the GIGA School Program and 898.3 13.3 826.8 7.5 telework. The acquisition of a US subsidiary 76.2 2
Slide 14: 10) Procuring Funds
10) Procuring Funds Funding Cost Ratio Composition of Interest-bearing Debt Funding cost ratio (%) 1.0% = Cost of funding / Average Balance of Interest-bearing debt (Billions of Yen) 0.9% Mar. Mar. 2020 Composition 2021 Composition 0.8% Y/Y Change Ratio Ratio 0.7% 0.66% Short-term Borrowings 37.
Slide 15: 11) Credit Costs
11) Credit Costs • Credit costs were in line with the previous year as we posted provisions due to the impact of COVID-19 and other factors. (Billions of Yen) 2.5 1.9 2.0 2.0 0.4 1.5 0.8 Leasing/Installment Sales Business 1.0 Finance Business 1.4 RISA Business 1.0 0.5 0.0 0.1 0.3 -0.5 FY2020 FY2021
Slide 16: 2. Consolidated Forecasts for FY2022
2. Consolidated Forecasts for FY2022
Slide 17: 1) Earnings Forecasts
1) Earnings Forecasts • We expect higher revenues and income due to growth in the Leasing/Installment Sales business, a decline in the goodwill amortization costs for RISA, and revenues generated in new initiatives. • Given forecasts of higher income, we plan to increase dividends in line with our b
Slide 18: 3. Progress on Medium-Term Plan 2020
3. Progress on Medium-Term Plan 2020
Slide 19: 1) Milestones in achieving Group vision
1) Milestones in achieving Group vision CSV management <<Our Group Vision >> To be a global solution service company that aims to enhance social value with customers Expand core areas + Complete core areas Harvest new businesses + Medium-Term Plan 2020 Develop new businesses Medium-Term Plan 2017 Re
Slide 20: 2) Progress on Medium-Term Plan 2020 in FY2021 1/2
2) Progress on Medium-Term Plan 2020 in FY2021 1/2 1. ” Expand core areas”: Advance services unique to us that demonstrate its strengths Established new services with vendors Bought the US-based NEC Financial Services, LLC , which leads the way with service development, and gained new business o
Slide 21: 2) Progress on Medium-Term Plan 2020 in FY2021 2/2
2) Progress on Medium-Term Plan 2020 in FY2021 2/2 2. “Harvest new businesses” : Generate revenue from new businesses that capitalize on our strengths, including in non-financial sectors Although local revitalization initiatives did make progress in various regions, the contribution to revenue was
Slide 22: Disclaimer on presentation materials and forward-looking statements
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
Slide 23: NEC Capital Solutions Group Vision
NEC Capital Solutions Group Vision To be a global solution service company that aims to enhance social value with customers
Slide 24: Orchestrating a brighter world
\ Orchestrating a brighter world NEC