Nec Capital Solutions Limited · TSE:8793

Nec Capital Solutions — NEC Leasing — H1 FY2006 Earnings Presentation

22 slides from Nec Capital Solutions's earnings presentation, Oct 26, 2006

  1. Slide 1: NEC Leasing, Ltd Results Presentation for the First Half of FY Ending March 31, 2007

    NEC Leasing, Ltd Results Presentation for the First Half of the Fiscal Year Ending March 31, 2007 October 26, 2006

  2. Slide 2: Contents

    Contents 1. FY2006 First Half Results 3. FY2006 Full-Year Forecast Highlight Financial Results Forecast Financial Summary Management Challenge Net Sales and Gross Profits by Dividend Forecast Business Contracts Executed by Business Company Overview Leasing Business:Contracts Executed by Equipment Op

  3. Slide 3: FY2006 First Half Results Highlight: Financial Summary

    1. FY2006 First Half Results Highlight Financial Summary (billion yen) 9/2005 (1H) 9/2006 (1H) YoY Net Sales 132.5 134.7 1.6% Ordinary Income 4.3 4.4 1.4% Net Income 2.5 2.6 1.7% Net Income per Share (Yen) 117.06 119.01 Operating Assets 620.5 667.9 7.6% Shareholders' Equity 53.4 57.9 8.4% Shareholde

  4. Slide 4: Net Sales and Gross Profits by Business

    Net Sales and Gross Profits by Business (billion yen) 9/2005(1H) 9/2006(1H) Amount Chg Net Sales Costs Funding Costs Gross Profits Net Sales Costs Funding Costs Gross Profits Net Sales Gross Profits Leasing Business Loan Business Other Business Total (Amounts are rounded down to the nearest 100 mill

  5. Slide 5: Contracts Executed by Business

    Contracts Executed by Business (billion yen) 9/2005(1H) 9/2006(1H) YoY Leasing Business Loan Business Installment Sales Business Loan Other Business Total (Amounts are rounded down to the nearest 100 million yen) Note: Total acceptance basis 4

  6. Slide 6: Leasing Business: Contracts Executed by Equipment

    Leasing Business:Contracts Executed by Equipment (billion yen) 9/2005(1H) 9/2006(1H) YoY Information and Communication Equipment Computers Hardware Computers Software Telecommunication Equipment Office Equipment Other Total (Amounts are rounded down to the nearest 100 million yen) Note: Total accept

  7. Slide 7: Operating Assets by Business

    Operating Assets by Business (billion yen) 800 668.0 667.9 620.5 600 90.1 99.8 89.4 Loan 400 531.1 577.8 Leasing 568.1 200 0 (Amounts are rounded down to the nearest 100 million yen) 6

  8. Slide 8: Non-performing Loans

    Non-performing Loans (billion yen) 1.00% 10 Bankruptcy (%) = Amount of new bankruptcy 0.75% / (Average balance of operating assets + Average 7.5 balance of fixed operating loans) Amount of New bankruptcy(in bankruptcies (net of terms of value) allowance of losses) 0.50% 5 0.25% 0.24% 0.25% 0.19% 2.5

  9. Slide 9: Funding

    Funding Composition of interest-bearing debts Cost of funding ratio 100% 1.0% Short-term loans Cost of funding ratio(%) = Cost of funding / average balance of interest - bearing debts 80% 0.9% Long-term loans 60% 0.8% 40% 0.7% 0.67% 0.71% Direct 20% funding 0.6% ratio 0.62% Bonds Securitization 0% 0

  10. Slide 10: New Medium-Term Business Plan (FY2006-2008)

    2. Results for FY2006 First Half New Medium-Term Business Plan(FY2006 - 2008) 1.Marketing Strategies: a.Collaboration with NEC Group for “solution business” b.Use of established expertise and franchises c.Expansion of business portfolio 2.Funding Strategies 3.Strategies for more efficient management

  11. Slide 11: Laying the Groundwork: Collaboration with NEC Group for Solution Business

    Laying the Groundwork for Achievement of the New Medium- Term Business Plan 1. Marketing Strategies a. Collaboration with NEC Group for “solution business” ‡ Establishment of the Tokyo Business Unit The capability to respond to the expansion of ICT service in the SMB market ‡ Establishment of the IC

  12. Slide 12: Use of Established Expertise and Franchises

    b. Use of established expertise and franchises ‡ Preparing cross-selling tools Medical receivables factoring started Life insurance agency business started ‡ Taking Over Rental PC Asset and Starting a New Service “PC-PIT” Taking over Rental PC asset of NEC and constructing the operation system Estab

  13. Slide 13: Reference 1: PC-PIT Service Menu

    Reference 1: PC-PIT Service Menu Procurement Support Service Kitting Service Expansion Support Service PC-PIT PC PC-Professional -Professional H/W Maintenance Service IT Service IT IT Asset Asset Management Management Support Support Service Service Disposition Disposition // Used Used PCs PCs Refre

  14. Slide 14: Reference 2: H/W Maintenance Service

    Reference 2: H/W Maintenance Service It takes much time and has costs, such as preparation of extra equipment, to keep operation in case of equipment trouble. In PC-PIT Service, we provide Customers Customers 4: Taking back two free substitute PCs for trouble PCs maintenance-use for users 3: Deliver

  15. Slide 15: Reference 3: IT Asset Business Support Service

    Reference 3: IT Asset Business Support Service Customers PC-PIT System 9 S/W Asset Management 9 License Management Guard server 9 Antivirus Conditions Check installation 9 All Asset Conditions Check Leveling initial Installed asset management software and running costs 14

  16. Slide 16: Expansion of Business Portfolio

    c. Expansion of business portfolio (billion yen) Number of actual (Companies) ‡ Small ticket leasing business 13 distributors (right axis) expands its service area, into Chubu 12 11 and Kansai area 10 Prospect to become profitable 9 Contracts executed for small The next step forward 8 ticket leasing

  17. Slide 17: Funding Strategies, Efficiency and CSR Management

    2. Funding Strategies ‡ Filed 100 billion yen bonds shelf registration statements ‡ Obtained from DBJ a loan at a policy-based low interest rate 3. Strategies for more efficient management, operations and expense ‡ Back office improvement project started 4. Further enhancement of CSR management ‡ Re

  18. Slide 18: FY2006 Full-Year Financial Results Forecast

    3. FY2006 Full-Year Forecast Financial Results Forecast (billion yen) 3/2006 3/2007 (Actual) (Forecast) YoY Net Sales 265.3 266.5 0.4% Ordinary Income 9.0 9.5 5.3% Net Income 5.3 5.6 5.6% Net Income per Share (Yen) 246.23 260.06 (Amounts are rounded off to the nearest 100 million yen) 17

  19. Slide 19: Management Challenge

    Management Challenge A change of ‡Slow recovery of the ICT market leasing business contracts (YoY:%) 20 10 0 -10 A change of ICT equipment leasing business contracts -20 04/1 3 5 7 9 11 05/1 3 5 7 9 11 06/1 3 5 7 ‡Severe business environment 9Mega bank has finished dead loans cleanup and started bus

  20. Slide 20: Dividend Forecast

    Dividend Forecast Forecast for 3/2007 Interim Year-end Annual Forecast for 3/2007 22.00 22.00 44.00 (for reference) 18.00 22.00 40.00 Actual 3/2006 (Unit: Yen) Note: Dividends per share for the fiscal year ended March 31, 2006 includes commemorative dividends of 4.00 yen per share. We aim to proacti

  21. Slide 21: 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 ¥ 57.8 billion (as of September 30, 2006) ‹Stock Exchange Listings Tokyo Stock Exchange, First Section (Ticker cod

  22. Slide 22: 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

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