Mizuho Leasing Company, Limited · TSE:8425

Mizuho Leasing — Q3 FY2023 Earnings Presentation

23 slides from Mizuho Leasing's earnings presentation, Feb 7, 2024

  1. Slide 1: Overview of the Third-Quarter Financial Results for FY2023

    Overview of the Third-Quarter Financial Results for FY2023 February 7, 2024 0 ©︎2024 Mizuho Leasing Company, Ltd.

  2. Slide 2: Table of Contents

    Table of Contents 1. Financial Results and Business Performance Overview 2. Progress Toward Earnings Forecasts 3. Appendix

  3. Slide 3: 1. Financial Results and Business Performance Overview

    1. Financial Results and Business Performance Overview

  4. Slide 4: Summary of Third-Quarter Results for FY2023

    Summary of Third-Quarter Results for FY2023  Gross profit before funding costs significantly increased by ¥11.0 bn YoY due to accumulation of operating assets, contribution from Rent Alpha Pvt. Ltd., and strong performance of real estate business.  Gross profit increased by ¥6.1 bn YoY, despite in

  5. Slide 5: Changes in Operating Assets and Profits at Each Income Level

    Changes in Operating Assets and Profits at Each Income Level (¥bn) Operating assets Gross profit before funding costs Gross profit Ordinary income 2,720.0 66.2 2,517.2 2,386.8 55.2 53.7 47.6 44.4 40.0 38.8 34.7 23.1 As of As of As of Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Dec.31 Dec.31 Dec.31 FY21 FY22 FY23 FY2

  6. Slide 6: Factors behind Changes in Net income attributable to owners of the parent

    Factors behind Changes in Net income attributable to owners of the parent Operating Ordinary Gross profit income income （¥bn） +6.1 +3.4 +5.3 27.6 24.8 (+2.8) (A) (B) (C) (D) Significantly increased YoY mainly due to steady accumulation of operating assets and contribution from (A) Gross profit befor

  7. Slide 7: Quarterly Trends of Operating Assets and Profits and Losses

    Quarterly Trends of Operating Assets and Profits and Losses  Steadily accumulated operating assets and continued the growth trend of underlying profit. FY22 FY23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (1) (2) YoY (¥bn) (2)-(1) Gross profit before funding costs 18.1 18.0 19.1 17.1 19.2 23.4 23.6 +4.5 (Funding costs)

  8. Slide 8: Gross Profit before Funding Costs and Operating Assets by Business Area

    Gross Profit before Funding Costs and Operating Assets by Business Area  Domestic leasing businesses: Although operating assets decreased slightly, gross profit before funding costs increased due to continuing initiatives that emphasize profitability (with gain on cancellation of contracts recorded

  9. Slide 9: Equity in Earnings and Losses (Non-operating Income and Expenses)

    Equity in Earnings and Losses (Non−operating Income and Expenses)  Both domestic and overseas associated companies performed well overall. －Domestic: The performance of NIPPON STEEL KOWA REAL ESTATE CO.,LTD. and Mizuho Marubeni Leasing Corporation remained strong. －Overseas: Income in overseas asso

  10. Slide 10: Funding

    Funding  Raised ¥25 bn in sustainability-linked bonds using the Sustainable Finance Framework.  The pace of increasing funding cost ratio slowed as U.S. interest rates passed their peak. Outstanding interest−bearing debt (¥bn) Quarterly trends in funding cost (ratio) (¥bn) Borrowings Bonds CP Secu

  11. Slide 11: Credit Ratings

    Credit Ratings  R&I upgraded the long-term issuer rating and the short-term debt rating on Mizuho Leasing from A+ to AA− and from a-1 to a-1+, respectively, in January 2024. Credit ratings Type of Credit ratings R&I JCR Long-term Issuer Rating AA− (Outlook: Stable) AA− (Outlook: Stable) Short-term

  12. Slide 12: 2. Progress Toward Earnings Forecasts

    2. Progress Toward Earnings Forecasts

  13. Slide 13: Progress Toward Earnings Forecasts

    Progress Toward Earnings Forecasts  Profit at each income level steadily progressed to reach approximately 90% of the company's earnings forecasts.  Kept the earnings forecast announced on May 12, 2023 unchanged, taking into account continued uncertainties over the situation in both Japan and abro

  14. Slide 14: 3. Appendix

    3. Appendix

  15. Slide 15: Main News & Topics in FY2023 (1/2)

    Main News & Topics in FY2023 (1/2) Date Contents Apr. 28, Concluded one of the Largest Virtual PPAs in Japan with Kao Corporation Environment 2023 —Switched power used at Kao’s Sumida Office to additional renewable energy sources and energy June 13, Concluded a Business Agreement with Social Interio

  16. Slide 16: Main News & Topics in FY2023 (2/2)

    Main News & Topics in FY2023 (2/2) Date Contents Oct. 13, Participated in the ”30by30 Alliance for Biodiversity” Sustainability 2023 —Joined a voluntary coalition dedicated to conserving at least 30% of land and sea as healthy ecosystems Provided Equity Support to Rent Alpha Pvt. Ltd. Oct. 30, —Sole

  17. Slide 17: Consolidated B/S (Assets)

    Consolidated B/S (Assets) YoY YoY % End−Mar. End−Mar. End−Mar. End−Mar. End−Dec. （¥bn） Change Change 2020 2021 2022 2023 (1) 2023 (2) (3) = (2)−(1) (3) / (1) Current assets 1,947.3 2,085.1 2,166.7 2,279.7 2,349.5 ＋69.8 ＋3% Cash and deposits 22.8 21.1 25.3 34.0 36.6 ＋2.6 ＋7% Investment in lease 1,082

  18. Slide 18: Consolidated B/S (Liabilities and Equity)

    Consolidated B/S (Liabilities and Equity) YoY YoY % End−Mar. End−Mar. End−Mar. End−Mar. End−Dec. （¥bn） Change Change 2020 2021 2022 2023 (1) 2023 (2) (3) = (2)−(1) (3) / (1) Current liabilities 1,314.1 1,492.9 1,548.4 1,573.5 1,643.9 ＋70.4 ＋4% Short−term borrowings 256.7 317.8 380.3 418.4 482.0 ＋63.

  19. Slide 19: Consolidated P/L

    Consolidated P/L YoY YoY % FY19 FY20 FY21 FY22 FY23 （¥bn） Change Change Q3 YTD Q3 YTD Q3 YTD Q3 YTD (1) Q3 YTD (2) (3) = (2)−(1) (3) / (1) Revenues 380.5 350.1 389.5 339.8 502.7 ＋162.9 ＋48% Gross profit before funding costs 42.6 43.0 44.4 55.2 66.2 ＋11.0 ＋20% Funding costs 7.3 6.1 5.6 7.6 12.5 ＋4.9

  20. Slide 20: Consolidated Statements of Comprehensive Income

    Consolidated Statements of Comprehensive Income YoY YoY % FY19 FY20 FY21 FY22 FY23 （¥bn） Change Change Q3 YTD Q3 YTD Q3 YTD Q3 YTD (1) Q3 YTD (2) (3) = (2)−(1) (3) / (1) Net income 12.9 18.5 17.8 25.7 29.1 ＋3.4 ＋13% Unrealized gain on 2.5 −2.6 0.7 3.9 4.1 ＋0.2 ＋6% available−for−sale securities Defer

  21. Slide 21: Gross Profit before Funding Costs by Business Area

    Gross Profit before Funding Costs by Business Area YoY YoY % FY19 FY20 FY21 FY22 FY23 （¥bn） Change Change Q3 YTD Q3 YTD Q3 YTD Q3 YTD (1) Q3 YTD (2) (3) = (2)−(1) (3) / (1) Revenues 380.5 350.1 389.5 339.8 502.7 ＋162.9 ＋48% Leasing and installment sales 367.2 339.5 376.5 320.3 478.5 ＋158.2 ＋49% Fina

  22. Slide 22: Newly Executed Contract Volume by Business Area

    Newly Executed Contract Volume by Business Area Leasing and Installment Sales Segment YoY YoY % FY21 FY22 FY23 （¥bn） Change Change Q3 YTD Q3 YTD (1) Q3 YTD (2) (3) = (2)−(1) (3) / (1) Information and communications 118.7 78.1 64.5 −13.6 −17% Real estate 91.2 83.2 213.9 ＋130.7 ＋157% Industry and fact

  23. Slide 23: Contact

    Contact Mizuho Leasing Company, Limited Corporate Communications Department Tel: +81-3-5253-6540 This document contains forecasts and other forward−looking statements that are based on information available at the time of preparation of this document and subject to certain risks and uncertainties, a

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