Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — IBJ Leasing — H1 FY2018 Earnings Presentation
31 slides from Mizuho Leasing's earnings presentation, Nov 12, 2018
Slide 1: FY2018 First-Half Financial Results Presentation Materials
FY2018 First-Half Financial Results Presentation Materials November 12, 2018 IBJ Leasing Co., Ltd. (Securities Code: 8425) Inquiries: Corporate Communication Division Tel:+81-3-5253-6540 Fax:+81-3-5253-6539
Slide 2: Contents
Contents I. Financial Results and Business Performance Overview ・・・ 2 II. Status of Fifth Mid-term Management Plan ・・・ 11 III. Appendix ・・・ 22 This document contains forecasts and other forward-looking statements that are based on information available at the time of preparation of this document and
Slide 3: I. Financial Results and Business Performance Overview
I. Financial Results and Business Performance Overview 2
Slide 4: Summary of First-Half Results for FY2018
Summary of First-Half Results for FY2018 Recorded gross profit before write-offs and funding costs of ¥25.0 billion, an increase of 13% y-o-y, and net income attributable to owners of the parent of ¥8.6 billion, an increase of 29% y-o-y. ― Both reached record highs on a semiannual basis. The pro
Slide 5: Overview of Financial Results
Overview of Financial Results (¥bn) FY16 FY17 FY18 Change % POINTS 1H 1H 1H Change Revenues 181.4 178.4 179.8 +1.4 +1% Gross profit before write-offs and funding Gross profit before write- 21.8 22.2 25.0 +2.8 +13% costs increased favorably offs and funding costs (Funding costs) (2.6) (3.4) (4.1) +
Slide 6: Business Performance Overview
Business Performance Overview POINTS (¥bn) FY16 FY17 FY18 % ■ Contract execution volume increased 24% y-o-y Change 1H 1H 1H Change Contract ・For “Leasing and installment sales,” execution 535.7 641.6 795.0 +153.4 +24% volume increased in areas such as industrial and execution volume Leasing and fact
Slide 7: Contract Execution Volume / Leasing and Installment Sales
Contract Execution Volume / Leasing and Installment Sales Contract execution volume by equipment type POINTS (¥bn) FY16 FY17 FY18 % Change 1H 1H 1H Change Steadily captured capital investment Industrial and factory 53.1 37.9 60.6 +22.7 +60% needs Information and 35.9 42.3 45.0 +2.7 +7% communicati
Slide 8: Contract Execution Volume / Financing
Contract Execution Volume / Financing Contract execution volume POINTS (¥bn) FY16 FY17 FY18 % Change 1H 1H 1H Change Commercial 410.7 446.3 +35.6 +9% Volume for commercial distribution Distribution 243.9 finance increased steadily Finance / Loan etc. Aircraft 4.8 7.8 6.4 -1.4 -17% Real Estate 53.6
Slide 9: Balance (Real Estate/Global)
Balance (Real Estate/Global) (¥bn) 306.7 300 POINTS 245.7 87.4 219.3 219.4 Real estate 219.2 200 20.8 ■ Property ownership businesses 98.9 79.9 81.3 (outlined in red) increased due to 146.8 87.2 execution of superior projects mainly 139.4 7.7 in metropolitan areas 25.0 8.7 138.0 47.9 Financing, etc.
Slide 10: Funding
Funding Interest-bearing debt increased from the end of the previous fiscal year in line with the increase in operating assets. ― Also actively raised funds from markets (issued three-year and five-year bonds, totaling ¥45.0 billion). Funding costs ratio increased due to higher foreign currency
Slide 11: Earnings Forecasts and Dividends
Earnings Forecasts and Dividends Net income attributable to owners of the parent is equivalent to 60% of the FY2018 annual plan. 【Dividends】 ・In view of business results, paid interim dividend of ¥38, an increase of ¥2 from the initial forecast. ・Plan to raise annual dividend for the 17th straight
Slide 12: II. Status of Fifth Mid-term Management Plan
II. Status of Fifth Mid-term Management Plan 11
Slide 13: Overview of Fifth Mid-term Management Plan (FY 2017-2019)
Overview of Fifth Mid-term Management Plan (FY 2017-2019) Vision “Value-creating company tackling challenges together with clients” Business Strategies and Reinforcement of Management Base Vigorously promote more profitable businesses leveraging expertise Basic policy and financial strengths gained
Slide 14: Approach for Promoting Fifth Mid-term Management Plan Focus Areas
Approach for Promoting Fifth Mid-term Management Plan Focus Areas ■ Meet diverse client needs with new business strategies, and expand businesses in high-growth potential areas ■ Accelerate initiatives that span focus areas based on clients’ needs over the mid- to long-term Promote business with cli
Slide 15: New Business Strategies
Promote business with clients New Business Strategies ■Support clients’ commercial distribution: Expand opportunities for revenue by being involved in commercial distribution from upstream to downstream ■Jointly promote service business with clients: Help clients change their business model, and rec
Slide 16: Real Estate: Strategies and Track-Record
Further reinforce initiatives in focus areas Real Estate: Strategies and Track-Record Strategies Focus on initiatives in areas with high societal needs such as hotels, childcare, and nursing care Drive forward expansion of bridge schemes, investments in overseas investment funds, and joint inves
Slide 17: Medical and Healthcare: Strategies and Track-Record
Further reinforce initiatives in focus areas Medical and Healthcare: Strategies and Track-Record Strategies Expand scope to the high-growth potential area of convalescence and nursing care, in addition to diagnosis and treatment Aim to expand service business by leasing real estate and collabora
Slide 18: Environment and Energy: Strategies and Track-Record
Further reinforce initiatives in focus areas Environment and Energy: Strategies and Track-Record Strategies Expand equipment leasing in response to needs of energy conservation project suppliers and consumers Meet a diverse range of needs by acquiring contracts via strengthening sales activities
Slide 19: Global (Aircraft): Strategies and Track-Record
Further reinforce initiatives in focus areas Global (Aircraft): Strategies and Track-Record Strategies Aim to attain targets for the final year of the mid-term plan by increasing aircraft-backed collateralized loans, setting up more aircraft operating leases, and entering business related to engin
Slide 20: Global (Overseas Subsidiaries): Strategies and Track-Record
Further reinforce initiatives in focus areas Global (Overseas Subsidiaries): Strategies and Track-Record Strategies Further expand client base by responding to changes in social structure in existing markets In addition, consider entering new leasing business via M&As and purchasing assets in un
Slide 21: For Reference: Market Outlook and Strategies by Focus Area
For Reference: Market Outlook and Strategies by Focus Area Market outlook Focus areas (Changes in social and industrial structures) Strategies Target (FY2019) Real estate needs will increase for childcare and nursing care, areas growing • Reinforce real estate leasing in areas with high societal nee
Slide 22: For Reference: Client-oriented Initiatives Spanning Focus Areas
Initiatives spanning focus areas For Reference: Client-oriented Initiatives Spanning Focus Areas Provide comprehensive package solutions that span focus areas and are tailored to a wide range of client needs Provide solutions to meet a wide range of client needs Comprehensive package solutions spa
Slide 23: III. Appendix
III. Appendix 22
Slide 24: Company Profile
Company Profile Company Name IBJ Leasing Company, Limited Address 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Representative Hiroshi Motoyama, President and CEO Establishment December 1, 1969 Listing Tokyo Stock Exchange, 1st Section (Code: 8425) Capital Stock 17,874 million yen (Outstanding shares:
Slide 25: Stock Status (As of September 30, 2018)
Stock Status (As of September 30, 2018) ○Number of shares issued 42,649,000 ○Major Shareholders ○Number of shareholders 30,850 Shares Held Holding Shareholders (1,000 shares) Ratio (%) ○Distribution of shareholders (shareholding ratio) The Dai-ichi Life Insurance Company, Limited 2,930 6.87 Individu
Slide 26: IBJL Group Internal Control System
IBJL Group Internal Control System IBJL Group has established and continues to effectively and appropriately operate a system that ensures proper conduct of business operations Management structure: 9 directors (incl. 3 outside directors), 4 auditors (incl. 4 outside auditors) ＊In compliance wit
Slide 27: Consolidated Balance Sheet (Assets)
Consolidated Balance Sheet (Assets) (¥bn) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change 2015 2016 2017 2018 (A) 2018 (B) (B)-(A) (B)/(A) Current assets 1,433.1 1,552.9 1,564.7 1,602.4 1,763.6 +161.2 +10.1% Cash and deposits 38.7 49.4 42.3 30.3 32.7 +2.4 +7.8% Investment in l
Slide 28: Consolidated Balance Sheet (Liabilities and Equity)
Consolidated Balance Sheet (Liabilities and Equity) (¥bn) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change 2015 2016 2017 2018 (A) 2018 (B) (B)-(A) (B)/(A) Current liabilities 1,044.3 1,119.2 1,045.8 1,082.1 1,221.4 +139.3 +12.9% Short-term borrowings 336.5 364.4 312.7 270.7 27
Slide 29: Consolidated Statement of Income
Consolidated Statement of Income (¥bn) FY14 FY15 FY16 FY17 FY18 Change % Change 1H 1H 1H 1H (A) 1H (B) (B)-(A) (B)/(A) Revenues 168.9 166.2 181.4 178.4 179.8 +1.4 +0.8% Gross profit before write-offs and 25.0 +2.8 +12.5% 21.0 21.4 21.8 22.2 funding costs Funding costs 3.1 3.2 2.6 3.4 4.1 +0.7 +19.7%
Slide 30: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income (¥bn) FY14 FY15 FY16 FY17 FY18 Change % Change 1H 1H 1H 1H (A) 1H (B) (B)-(A) (B)/(A) Net income * 6.0 6.2 7.7 6.9 8.9 +2.0 +28.8% Unrealized gain on available-for- -0.5 -2.1 - 0.6 1.8 -1.4 1.6 sale securities Deferred loss on derivatives under 0.0 +0.1
Slide 31: Gross Profit Before Write-offs and Funding Costs by Segment
Gross Profit Before Write-offs and Funding Costs by Segment (¥bn) FY14 FY15 FY16 FY17 FY18 Change % Change 1H 1H 1H 1H (A) 1H (B) (B)-(A) (B)/(A) Revenues 168.9 166.2 181.4 178.4 179.8 +1.4 +0.8% Leasing and installment 164.1 161.1 175.7 171.9 171.1 -0.8 -0.4% sales Finance 4.4 4.8 5.3 6.3 7.9 +1.6