Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — FY2016 Earnings Presentation
37 slides from Fuyo General Lease's earnings presentation, May 16, 2017
Slide 1: Financial Results briefing for FY2016
Financial Results briefing for FY2016 IR Presentation May 16, 2017 FUYO GENERAL LEASE CO., LTD. 1
Slide 2: Agenda
Agenda 1. Overview of consolidated operating results 2. Overview of business activities 3. Summary of “Frontier Expansion 2021” Medium-term Management Plan 4. Operating results forecast and dividend policy 5. Appendix Earnings forecasts and other forward-looking statements provided in this material
Slide 3: FY2016 results
1. Overview of consolidated operating results (1) FY2016 results (¥100 million) FY2015 FY2016 YoY YoY change change results results (amount) (%) Total revenues 4,937 5,070 +133 +2.7% Profit before interest 580 623 +43 +7.4% expenses (*1) Gross profit 511 551 +41 +8.0% Operating profit 244 286 +42 +1
Slide 4: Changes in total revenues, ordinary profit, and profit attributable to owners of parent
1. Overview of consolidated operating results (2) Changes in total revenues, ordinary profit, and profit attributable to owners of parent Total revenues Ordinary profit, profit attributable to owners of parent Total revenues up for three consecutive years, reaching the ¥500.0 billion level, on susta
Slide 5: Factors affecting ordinary profit
1. Overview of consolidated operating results (3) Factors affecting ordinary profit ・A sharp increase in profit before interest expenses (¥4.3 billion) was the source of the profit increase ・Although there was a ¥300 million reversal of allowance for credit-related costs, it had a ¥1.3 billion negat
Slide 6: Profit before interest expenses
1. Overview of consolidated operating results (4) Profit before interest expenses [Leases segment] Asset balance and gross margin on assets Asset increases and maintenance of the gross margin contributed to profit before interest (¥100 million) 13,698 (%) 14,000 12,440 5 expenses increases in both t
Slide 7: Changes in funding
1. Overview of consolidated operating results (5) Changes in funding Although the funding balance increased 10% accompanying the increase in operating assets, interest expenses rose only 3% because of lower funding costs . (¥100 million) (¥100 million) Funding balance 18,509 Interest expenses, fundi
Slide 8: Changes in costs and net assets and equity ratio
1. Overview of consolidated operating results (7) Changes in net assets and (6) Changes in costs equity ratio ・Credit-related costs maintained at a favorable level for five Equity ratio maintained at the 10% level amid growth in consecutive years operating assets ・Total personnel/equipment expenses
Slide 9: Newly executed contract volume and operating assets
2. Overview of business activities (1) Newly executed contract volume (2) Operating assets A strong 15% increase in the Leases segment. Operating assets exceeded the upwardly Impact of the consolidation of Accretive in the revised medium-term plan target and Financing and Other segment reached the ¥
Slide 10: Changes in newly executed contract volume
2. Overview of business activities (3) Changes in newly executed (4) Newly executed lease contracts contract volume volume (by type of equipment) Volume consistently substantially above industry Increase of 15.4% year on year, driven by average (Japan Leasing Association data) buildings, etc. (real
Slide 11: Frontier Expansion 2021 Medium-term Management Plan
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Medium-term Management Plan Frontier Expansion 2021 “Going Where No One Has Gone Before” Aiming to be a corporate group that moves into uncharted businesses and continues to expand the frontier 11
Slide 12: Overview of Value Creation 300 Medium-term Management Plan
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (1) 1. Overview of “Value Creation 300” Medium-term Management Plan ■ Vision ◆ At the 10th anniversary milestone of the listing of Fuyo Ordinary profit above the initial target General Lease, lay a foundation
Slide 13: Summary of seven strategic business areas in the previous plan
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (1) 2. Summary of seven strategic business areas in the previous Medium-term Management Plan Targets Actual Business area At launch Initial target Overview and evaluation Indicator (FY2016) (FY2013) (FY2016)
Slide 14: Vision: Frontier Expansion 2021
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (2) Vision Frontier Expansion 2021 “Going Where No One Has Gone Before” Aiming to be a corporate group that moves into uncharted businesses and continues to expand the frontier The Fuyo Lease Group aims to ac
Slide 15: Goals (Target Performance Indicators)
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (3) Goals (Target Performance Indicators) Target Value Interim Goal Indicator FY2021 FY2019 ¥2,300-¥2,400 Operating assets ¥2,500 billion billion ROA 2.0% 1.7-1.8% Ordinary profit ¥50 billion ¥38-¥42 billion
Slide 16: Comparison of performance indicators (previous plan and new plan)
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (4) Comparison of performance indicators (previous plan and new plan) ■ Comparison of business objectives and results ■ Growth trajectory (¥100 million) FY2013 FY2016 FY2021 Target indicator Previous New Star
Slide 17: The core strategies
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (5) The 3 core strategies 1) Selection and Concentration in Strategic Areas Strategic Areas 2) Challenge the Frontier Frontier 3) Pursue Group Synergies Group 17
Slide 18: Selection and Concentration in Strategic Areas
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (5) 1. Selection and Concentration in Strategic Areas (Business Strategies) Strategic Areas Core Areas Areas positioned as growth Areas designated for market drivers and designated for (customer base) concent
Slide 19: Challenge the Frontier
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (5) 2. Challenge the Frontier ・Shift of focus to added value and services that banks are unable to provide and business domains unavailable to banks ・Expansion of domains where emphasis is on asset value and
Slide 20: Pursue Group Synergies
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (5) 3. Pursue Group Synergies Products Fuyo Fuyo Auto and Sharp General Accretive Finance Lease services Lease (functions) Marketing of Group company products Previous in the markets of each individual New co
Slide 21: Real Estate
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Strategic (6) 1. Real Estate Areas Frontier A plan to maintain and expand 2.5 (¥100 million) (%) strong newly executed contract Operating assets and ROA (real estate leasing) 5-year 2.4 volume and double oper
Slide 22: Real Estate: Scheme Expansion and Market Expansion
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Strategic (6) 1. Real Estate Areas Frontier Scheme Expansion Market Expansion Proposal- Bridge-type based selling transactions Expansion involving provision of land information Expansion of ROA partnerships w
Slide 23: Energy/Environment
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Strategic (6) 2. Energy/Environment Areas Frontier Operating assets and ROA of the solar power generation Phase 2 of the solar power generation business within Energy/Environment business, centered on mega-so
Slide 24: Medical/Social Welfare
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Strategic (6) 3. Medical/Social Welfare Areas Frontier Strategic vision for the Medical/Social Welfare sector (example: support for comprehensive community care systems) Community healthcare collaboration ins
Slide 25: Aircraft
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Strategic (6) 4. Aircraft Areas Frontier (¥100 million) 5-year (%) Accelerate the pace of increase in 4.0 Aircraft leasing target leases arranged and quadruple the operating assets and ROA number of leases in
Slide 26: Overseas
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Strategic (6) 5. Overseas Areas Frontier Overseas = Business of overseas subsidiaries excluding aircraft leasing Expansion including inorganic growth, (%) mainly in North America and Asia (¥100 million) Overs
Slide 27: New Domains
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan Strategic (6) 6. New Domains Areas Frontier Aim for frontier expansion by pursuing (¥100 million) 5-year target equity investments and business New Domains ordinary profit Approx. 40 alliances. 3-year interim
Slide 28: New Domains: Expansion into Group markets by Accretive
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (6) 6. New Domains Expansion into Group markets by Accretive Foreign exchange settlement, currency exchange support Accounting Products FPS Medical FPS and (early payment of Flex Payment Service work Services
Slide 29: Used asset sales, residual value-based leases
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (6) 6. New Domains Used asset sales, residual value-based leases (strengthening of involvement in asset value) Used Asset Sales Residual Value-Based Leases Strengthening of used asset sales Development of hig
Slide 30: Management Strategy
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (7) Management Strategy Strategies to strengthen the management foundation which supports the execution of business strategies ■ Address new risks in conjunction with frontier expansion ■ Strengthen corporate
Slide 31: Schematic representation of strategies
3. Summary of Frontier Expansion 2021 “Frontier Expansion 2021” Medium-term Management Plan (8) Schematic representation of strategies Target ¥50.0 3 Core Strategies bn Challenge the New Frontier Business strategy Strategic Areas domains Overseas Selection and Concentration Aircraft in Strategic Are
Slide 32: FY2017 consolidated operating results forecast
4. Operating results forecast and dividend policy (1) FY2017 consolidated operating results forecast (¥100 million) FY2016 Actual FY2017 Forecast Total revenues 5,070 5,300 Operating profit 286 310 Ordinary profit 314 330 Profit attributable to owners of parent 200 205 Basic earnings per share ¥661.
Slide 33: Dividend policy
4. Operating results forecast and dividend policy (2) Dividend policy FY2016 dividend payment of ¥130, ¥10 more than the initial forecast (¥120), and dividend payout ratio of 19.6% FY2017 dividend forecast of ¥136, a ¥6 increase from FY2016 (Yen) Change in dividend 136 130 70 100 80 70 74 62 66 58 6
Slide 34: Summary of consolidated operating results
5. Appendix (1) Summary of consolidated operating results (¥100 million) YoY change FY2012 FY2013 FY2014 FY2015 FY2016 (FY2015 to FY2016) Total revenues 4,426 4,417 4,723 4,937 5,070 +133 Total costs 3,932 3,945 4,237 4,426 4,519 +92 Interest expenses 71 68 66 69 71 +2 Gross profit 493 472 485 511 5
Slide 35: Newly executed contract volume
5. Appendix (2) Newly executed contract volume (¥100 million) YoY YoY change change FY2012 FY2013 FY2014 FY2015 FY2016 (amount) (%) (FY2015 to (FY2015 to FY2016) FY2016) Leases 3,880 3,976 3,968 4,536 5,234 +698 +15.4% Finance leases 3,425 3,599 3,311 3,644 3,958 +314 +8.6% Operating leases 454 376
Slide 36: Operating assets
5. Appendix (3) Operating assets (¥100 million) YoY change YoY change (amount) (%) FY2012 FY2013 FY2014 FY2015 FY2016 (FY2015 to (FY2015 to FY2016) FY2016) Leases 10,986 11,528 11,765 12,440 13,698 +1,258 +10.1% Finance leases 9,206 9,680 9,649 10,060 10,486 +426 +4.2% Operating leases 1,780 1,848 2
Slide 37: Non-consolidated results and principal consolidated companies' results
5. Appendix (4) Overview of non-consolidated results and principal consolidated companies’ results (¥100 million) Sharp Finance Fuyo General Lease Co., Fuyo Auto Lease Co., Ltd. Accretive Co., Ltd. Corporation Ltd. (Non-consolidated) (Ownership ratio: 100%) (Ownership ratio: 51%) (Ownership ratio: 6