Slide 1: Results Presentation for the Fiscal Year Ended March 31, 2006
NEC Leasing, Ltd. Results Presentation for the Fiscal Year Ended March 31, 2006 April 26, 2006
Slide 2: Contents
Contents 1. Report of Financial Results for 3. Plans for FY2006 FY 2005 New Medium-Term Business Plan Financial Summary (FY2006 2008) Net Sales and Gross Profits by Status of the New Medium-Term Business Business Plan Execution Contracts Executed by Business Financial Results Forecast Leasing Busine
Slide 3: Financial Summary
1. Report of Financial Results for FY2005 Financial Summary billion yen YoY Net Sales Ordinary Income Net Income Net Income per Share (Yen) Operating Assets Shareholders' Equity Shareholders' Equity Ratio Dividends per Share (Yen) (Amounts are rounded off to the nearest 100 million yen) Note 1: Divi
Slide 4: Net Sales and Gross Profits by Business
Net Sales and Gross Profits by Business 3/2004 (FY) 3/2005 (FY) 3/2006 (FY) 242.9 223.6 4.8 14.5 246.4 227.1 4.5 14.8 246.2 227.5 3.6 15.0 2.5 0.1 0.7 1.8 2.3 0.0 0.5 1.8 1.8 0.0 0.3 1.6 14.7 11.3 0.0 3.3 13.5 11.2 0.0 2.4 17.3 14.5 0.0 2.7 260.1 235.0 5.5 19.6 262.2 238.3 5.0 19.0 265.3 242.1 3.9 1
Slide 5: Contracts Executed by Business
Contracts Executed by Business billion yen) YoY change YoY% Leasing Business Loan Business Installment Sales Business Loans Other Business Total Note: Total acceptance basis (Amounts are rounded off to the nearest 100 million yen) 4
Slide 6: Leasing Business: Contracts Executed by Equipment
Leasing Business: Contracts Executed by Equipment YoY Change YoY% Information and Communication Equipment Computers Hardware Computers Software Telecommunication Equipment Office Equipment Other Equipment Total Amounts are rounded off to the nearest 100 million yen Note: Total acceptance basis 5
Slide 7: Operating Assets by Business
Operating Assets by Business billion yen Loan Leasing Amounts are rounded off to the nearest 100 million yen 6
Slide 8: Non-performing Loans
Non-performing Loans billion yen Bankruptcy (%) = Amount of new bankruptcy / (Average balance of operating assets + Average balance of fixed operating loans) Amount of bankruptcies (net of Bankruptcy allowance of losses) rate Amounts are rounded off to the nearest 100 million yen 7
Slide 9: Funding
Funding Composition of interest-bearing debts Cost of funding ratio Short-term loans Long-term loans Direct funding ratio Bonds Cost of funding ratio(%) = Cost of funding / average balance of Securitization interest - bearing debts 8
Slide 10: Results: Growth in ICT related business
2. Results for the Fiscal Year Ended March 31, 2006 Growth in ICT related business Growth rate of computer H/W and S/W leasing ¾Promotion of “Total IT Solutions Business” with NEC Group NEC Leasing Realization of growth that is substantially greater than the Leasing industry average Leasing industry
Slide 11: Expansion of target areas
Expansion of target areas billion yen Contracts executed for small ticket leasing and number No. of of actual distributors 199 Companies 23 200 ¾Development and enforcement of Number of actual distributors 22.3 unique business areas to diversify the 167 21.5 152 business portfolio 21 Contracts 150 e
Slide 12: Promotion of CSR management
Promotion of CSR management billion yen Contracts secured for "Eco-Lease" ¾Expansion of environmental management Expansion of differentiated business generating from “environmental management” Promotion of “Eco-Lease” Eligible for environment friendly financing program of the Development Bank of Jap
Slide 13: Plans for FY2006: New Medium-Term Business Plan
3. Plans for FY2006 New Medium-Term Business Plan (FY2006~2008) 1. Marketing strategy a. Collaboration with the NEC group b. Use of accumulated intellectual properties and assets c. Expansion of business portfolio 2. Funding strategy 3. Strategy for more efficient management, operations and cost 4.
Slide 14: Status of the New Medium-Term Business Plan Execution
Status of the New Medium-Term Business Plan Execution Revision of sales system Reorganizing into a system with high operational readiness and maneuverability, to respond to ICT market and to enhance SMB business Establishment of Area Redevelopment Committee, launching examination Business developmen
Slide 15: New business, lowering funding cost, CSR management
Aiming to set up new business Establishment of “Business Development Committee” to begin concrete planning Lowering the funding cost Increasing the maximum issuing amount of CP Development of CSR management Setup of CSR Promotion Division Acquisition of ISO27001, the ISMS certificate 14
Slide 16: Financial Results Forecast
Financial Results Forecast (billion yen) Actual) (Forecast) Net Sales Ordinary Income Net Income Net Income per Share (Yen) (Amounts are rounded off to the nearest 100 million yen 15
Slide 17: Dividend Forecast
Dividend Forecast Dividends per share Interim Year-end Annual Forecast for 3/2007 22.00 22.00 44.00 (for reference) 18.00 22.00 40.00 Actual 3/2006 Note: Dividends per share for the fiscal year ended March 31, 2006 includes commemorative dividends of 4.00 yen per share. We aim to proactively return
Slide 18: Company Overview
Company Overview Name NEC Leasing, Ltd. Head Office NEC Sumisei Bldg, 29-11, Shiba 5-chome, Minato-ku, Tokyo 108-0014, Japan Operation Started November 30, 1978 Shareholders’ Equity ¥ 56.1 billion (as of March 31, 2006) Stock Exchange Listings Tokyo Stock Exchange, First Section (Ticker code: 8
Slide 19: Disclaimer
This presentation material is intended to provide our corporate information and not to solicit you to purchase, sell, or invest in the securities issued by NEC Leasing, Ltd. We request that the investment decision be made at your discretion. This presentation material contains forward-looking statem