Nec Capital Solutions Limited · TSE:8793
Nec Capital Solutions — H1 FY2021 Earnings Presentation
21 slides from Nec Capital Solutions's earnings presentation, Oct 29, 2020
Slide 1: Briefing Material on the Financial Results for the 1st Half of FY2021
Briefing Material on the Financial Results for the 1st Half of the Fiscal Year Ending March 31, 2021 (FY2021) October 29, 2020 NEC Capital Solutions Limited 1 © NEC Capital Solutions Limited 2020
Slide 2: Orchestrating a brighter world
\ Orchestrating a brighter world NEC creates the social values of safety, security, fairness and efficiency to promote. a more sustainable world where everyone has the chance to reach their full potential.
Slide 3: Contents
CONTENTS 1. Consolidated Financial Results for the 1st Half of 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 Busines
Slide 4: 1. Consolidated Financial Results for the 1st Half of FY2021
1. Consolidated Financial Results for the 1st Half of FY2021
Slide 5: Highlights of Financial Statements
1. Consolidated Financial Results for the 1st Half of FY2021 1) Highlights of Financial Statements Business Environment Total leasing contracts decreased by 19.9% Y/Y. We will have to closely monitor trends from the end of the fiscal year in the financing environment and bankruptcies as a result
Slide 6: Business Environment
1. Consolidated Financial Results for the 1st Half of FY2021 2) Business Environment Total Leasing Contracts: -Total leasing contracts in the industry decreased by 19.9% Y/Y. -Our mainstay Information and Communication Equipment leasing decreased by 18.2% Y/Y. Bankruptcies: -The number of bankru
Slide 7: Financial Summary
1. Consolidated Financial Results for the 1st Half of FY2021 3) Financial Summary Revenues: Revenue fell 5.8% Y/Y because, despite growth in the Leasing/Installment Sales business, we posted several large-scale sales in the RISA business in the same period in the previous year. Ordinary Income:
Slide 8: Revenues by Business Segment
1. Consolidated Financial Results for the 1st Half of FY2021 4) Revenues by Business Segment Leasing/Installment Sales Business ▌Revenues by Business Segment Revenue and gross profit rose over the same period ▌Revenues by Business Segment in the previous year as a result of an increase in the (Bil
Slide 9: Contracts Executed by Business Segment
1. Consolidated Financial Results for the 1st Half of FY2021 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 2Q 2Q Y/Y Change 2Q 2Q Y/Y Change Leasing/ Installment
Slide 10: Leasing/Installment Sales Business
1. Consolidated Financial Results for the 1st Half of FY2021 6) Leasing/Installment Sales Business ▌Contracts Executed by Customer Sector ▌New Transactions by Customer Sector (Billions of Yen) (Billions of Yen) FY2020 FY2021 FY2020 FY2021 2Q 2Q Y/Y Change 2Q 2Q Y/Y Change Public Sector: Government P
Slide 11: Finance Business
1. Consolidated Financial Results for the 1st Half of FY2021 7) Finance Business ▌Contracts Executed by Form of Contract ▌Contracts Executed by Customer Sector (Billions of Yen) FY2020 FY2021 (Billions of Yen) 2Q 2Q Y/Y Change FY2020 FY2021 Public sector: 2Q 2Q Y/Y Change Government agencies 1.0 1.3
Slide 12: RISA Business
1. Consolidated Financial Results for the 1st Half of FY2021 8) RISA Business ▌Revenues by Business Segment Both revenue and income fell Y/Y (Billions of Yen) due to large sales of several FY2020 2Q FY2021 2Q Y/Y Change projects in the same period in the Asset Business Revenues 9.7 1.8 -81.1% previo
Slide 13: Operating Asset Balances
1. Consolidated Financial Results for the 1st Half of FY2021 9) Operating Asset Balances (Billions of Yen) Leasing/Installment Sales 1,000 Business The operating asset balance grew in 808.4 3.8 852.0 8.6 871.6 both the public and private sectors, 2.4 increasing 35.4 billion yen Y/Y. In the 50.7 76
Slide 14: Procuring Funds
1. Consolidated Financial Results for the 1st Half of FY2021 10) Procuring Funds ▌Funding Cost Ratio ▌Composition of Interest-bearing Debt (Billions of Yen) 1.0% Funding cost ratio (%) Sep. Sep. 0.9% = Cost of funding / Average Balance of Interest-bearing debt 2019 C omposition 2020 C omposition Y/Y
Slide 15: Credit Costs
1. Consolidated Financial Results for the 1st Half of FY2021 11) Credit Costs Credit costs increased by 700 million yen Y/Y due to the posting of new provisions as a result of the impact of COVID-19 and other factors. (Billions of Yen) 1.0 1.1 Leasing / Installment Sales Business 0.9 Finance Busin
Slide 16: 2. Consolidated Forecasts for FY2021
2. Consolidated Forecasts for FY2021
Slide 17: Earnings Forecasts
2. Consolidated Forecasts for FY2021 1） Earnings Forecasts Consolidated earnings forecasts for FY2021 have been left unchanged from the forecasts released on July 30. (Billions of Yen) ▌Forecast FY2021 2Q FY2021 Actual Forecast Revenues 108.0 220.0 Operating Income 1.8 6.5 Ordinary Income 1.9 6.5
Slide 18: 3. Topics
3. Topics \ Orchestrating a brighter world NX EC
Slide 19: Topics: R&I rating, NEC Financial Services consolidation
3. Topics R&I rating raised from BBB+ to A- Our earning power has improved in light of results in the Leasing/Installment business and the RISA business, as well as resilience to risk, as indicated by the health of assets and other factors. This is the first time in nine years since our rating h
Slide 20: 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 20 © NEC Capital Solutions Limited 2020
Slide 21: Orchestrating a brighter world
\ Orchestrating a brighter world NEC
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