Slide 1: Results Presentation for the Fiscal Year Ended March 31, 2008
NEC Leasing, Ltd. Results Presentation for the Fiscal Year Ended March 31, 2008 April 25, 2008
Slide 2: Contents
Contents 1. Report of Financial Results for FY 3. Plans for FY2008 2007 (the Fiscal Year Ended Third Medium-Term Business Plan March 31, 2008) Initiatives in FY2008 Financial Summary Financial Results Forecast Net Sales and Gross Profits by Dividend Forecast Business Contracts Executed by Business C
Slide 3: Unconsolidated Financial Summary
1. Report of Financial Results for FY 2007 (the Fiscal Year Ended March 31, 2008) Unconsolidated Financial Summary (Billion Yen) 3/2007 3/2008 YoY Net Sales 265.7 264.1 -0.6% Ordinary Income 7.0 5.9 -15.9% Net Income 4.1 3.9 -3.1% Net Income per Share (Yen) 189.21 183.28 - Operating Assets 682.8 709
Slide 4: Unconsolidated Net Sales and Gross Profits by Business
Unconsolidated Net Sales and Gross Profits by Business (Billion Yen) 3/2007 3/2008 YoY change Funding Gross Funding Gross Gross Net Sales Costs Net Sales Costs Net Sales Costs Profit Costs Profit Profit Leasing Business 247.4 228.9 4.5 14.0 244.2 225.8 5.8 12.7 -3.2 -1.3 Loan Business 1.9 0.0 0.3 1.
Slide 5: Unconsolidated Contracts Executed by Business
Unconsolidated Contracts Executed by Business (Billion Yen) 3/2007 3/2008 YoY change % Leasing Business 217.7 229.6 11.8 105.4% Loan Business 248.5 309.7 61.3 124.7% Installment Sales 12.4 17.4 5.0 140.0% Business Loans 236.1 292.3 56.3 123.8% Other Business 3.0 2.3 -0.7 77.5% Total 469.2 541.7 72.4
Slide 6: Leasing Business: Contracts Executed by Equipment
Leasing Business: Unconsolidated Contracts Executed by Equipment (Billion Yen） 3/2007 3/2008 YoY Change % Information and Communication Equipment 172.5 169.1 -3.5 98.0% Computers Hardware 78.7 77.7 -1.0 98.7% Computers Software 78.8 80.8 2.0 102.5% Telecommunication Equipment 15.0 10.5 -4.4 70.4% Of
Slide 7: Unconsolidated Operating Assets by Business
Unconsolidated Operating Assets by Business (Billion Yen) 800 682.8 709.3 668.0 90.1 115.3 139.3 600 Loan 400 577.8 567.5 Leasing 570.1 200 0 3/2006 3/2007 3/2008 （Amounts are rounded off to the nearest 100 million yen） 6
Slide 8: Unconsolidated Non-performing Loans
Unconsolidated Non-performing Loans (Billion Yen) 1.00% 10.0 Bankruptcy (%) = Amount of new bankruptcy / (Average balance of operating assets + Average balance of fixed operating loans) 0.75% 7.5 Amount of bankruptcies (net of Bankruptcy allowance of losses) rate 0.50% 5.0 0.34% 0.25% 0.23% 0.25% 2.
Slide 9: Unconsolidated Funding
Unconsolidated Funding Composition of interest-bearing debts Cost of funding ratio 100% 1.5% Short-term 1.4% loans 1.3% 80% 1.2% Long-term 1.1% loans 1.0% 60% 0.9% 0.77% 1.01% 0.8% 0.7% 0.62% 40% CP 0.6% 0.5% Direct 0.4% 20% funding 0.3% Bonds ratio 0.2% Cost of funding ratio(%) = Cost 39.7% of fund
Slide 10: Highlights for FY2007: Management Environment
2. Highlights for FY2007 Management Environment Intensifying competition following market reorganization 9Mega-leasing companies affiliated with banks have emerged Changes in the lease accounting and taxation systems 9The leasing business environment has become more difficult Capital expenditu
Slide 11: Achievements in FY2007
Achievements in FY2007 Achieved growth in new businesses 9Began full operations in ABL and large structured finance Expanded small ticket leasing 9Annual contracts executed exceeded ¥32 billion Bolstered alliances with other companies 9Invested in Tokyo Servicer, Inc. 9Concluded a joint ventur
Slide 12: Achievements in FY2007
Achievements in FY2007 Made further gains in business efficiency 9Completed introduction of the SMART project Enforced governance 9Developed a business flow in response to the Japanese version of the SOX legislation 9Built an internal control system Further enhancement of CSR management 9Worke
Slide 13: Third Medium-Term Business Plan: New corporate identity
3.Plans for FY2008 Third Medium-Term Business Plan New corporate identity Creating an advanced ICT society that the NEC Group seeks by offering Integrated Capital Solutions. Integrated Capital Solutions 9 Integrated Solutions that we will provide for a wide range of business challenges centered on
Slide 14: Third Medium-Term Business Plan: Business portfolio strategy
Third Medium-Term Business Plan Business portfolio strategy Three Business Domains and Five Core Businesses Strategy for strengthening management functions Bolstering consolidated management Promoting BPR Enhancing ERM Human resources management Enhancing governance / CSR Establishing en
Slide 15: Initiatives in FY2008
Initiatives in FY2008 Undertake structural reforms 9 Start Corporate Finance Business Unit and Finance Business Division 9 Launch a joint venture with Macquarie Capital Finance (Japan) Limited 9 Further bolster alliances with other companies Improve internal infrastructure 9 Promote information
Slide 16: Financial Results Forecast
Financial Results Forecast (Billion Yen) 3/2008 3/2009 (Actual) (Forecast) YoY Net Sales 264.1 264.0 -0.0% Ordinary Income 5.9 6.5 9.9% Net Income 3.9 3.8 -3.7% Net Incom e per Share (Yen) 183.25 176.47 - (Amounts are rounded off to the nearest 100 million yen） 15
Slide 17: Dividend Forecast
Dividend Forecast Dividends per share (Yen) Interim Year-end Annual Forecast for 3/2009 22.00 22.00 44.00 22.00 22.00 44.00 Actual 3/2008 We aim to proactively return profits to shareholders on the back of stable business growth. 16
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 ¥ 62.0 billion (as of March 31, 2008) 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