Nec Capital Solutions Limited · TSE:8793

Nec Capital Solutions — H1 FY2020 Earnings Presentation

24 slides from Nec Capital Solutions's earnings presentation, Oct 30, 2019

  1. Slide 1: Briefing Material on Financial Results for 1st Half of FY2020

    Briefing Material on the Financial Results for the 1st Half of the Fiscal Year Ending March 31, 2020 (FY2020) October 30, 2019 NEC Capital Solutions Limited

  2. Slide 2: © NEC Capital Solutions Limited 2016

    2 © NEC Capital Solutions Limited 2016

  3. Slide 3: Contents

    CONTENTS 1. Consolidated Financial Results for the 1st Half of FY2020 1) Highlights of Financial Statements 2) Business Environment 3) Financial Summary 4) Revenues by Business Segment 5) Contracts Executed by Business Segment 6) Leasing/Installment Sales Business 7) Finance Business 8) RISA Busines

  4. Slide 4: Consolidated Financial Results for the 1st Half of FY2020

    1. Consolidated Financial Results for the 1st Half of FY2020

  5. Slide 5: Highlights of Financial Statements

    1. Consolidated Financial Results for the 1st Half of FY2020 1) Highlights of Financial Statements Business Environment Total leasing contracts increased by 14.2% Y/Y. Conditions for procuring funds remained favorable. The number of bankruptcies increased Y/Y, but total liabilities declined Y/Y.

  6. Slide 6: Business Environment

    1. Consolidated Financial Results for the 1st Half of FY2020 2) Business Environment  Total Leasing Contracts: -Total leasing contracts in the industry increased by 14.2% Y/Y. -Our mainstay Information and Communication Equipment leasing increased by 28.8% Y/Y.  Bankruptcies: -The number of bankru

  7. Slide 7: Financial Summary

    1. Consolidated Financial Results for the 1st Half of FY2020 3) Financial Summary  Revenues: Revenue increased 13.4% Y/Y due to gains in the RISA business, in addition to growth in the leasing/installment sales business and large sales in other business.  Ordinary Income: In addition to the postin

  8. Slide 8: Revenues by Business Segment

    1. Consolidated Financial Results for the 1st Half of FY2020 4) Revenues by Business Segment ▌Revenues by Business Segment Leasing/Installment Sales Business  Revenues and gross profit rose Y/Y. (Billions of Yen)  Operating income fell 27.5% Y/Y due to a FY2019 FY2020 decrease in the reversal of a

  9. Slide 9: Contracts Executed by Business Segment

    1. Consolidated Financial Results for the 1st Half of FY2020 5) Contracts Executed by Business Segment ▌Contracts Executed by Business Segment ▌New Transactions by Business Segment (Billions of Yen) (Billions of Yen) FY2019 FY2020 FY2019 FY2020 2Q 2Q Y/Y Change 2Q 2Q Y/Y Change Leasing/ Installment

  10. Slide 10: Leasing/Installment Sales Business

    1. Consolidated Financial Results for the 1st Half of FY2020 6) Leasing/Installment Sales Business ▌Contracts Executed by Customer Sector ▌New Transactions by Customer Sector (Billions of Yen) (Billions of Yen) FY2019 FY2020 FY2019 FY2020 2Q 2Q Y/Y Change 2Q 2Q Y/Y Change Public Sector: Government &

  11. Slide 11: Finance Business

    1. Consolidated Financial Results for the 1st Half of FY2020 7) Finance Business ▌Contracts Executed by Form of Contract ▌Contracts Executed by Customer Sector (Billions of Yen) FY2019 FY2020 (Billions of Yen) 2Q 2Q Y/Y Change FY2019 FY2020 Public Sector: 2Q 2Q Y/Y Change Government&Municipal 0.4 1.

  12. Slide 12: RISA Business

    1. Consolidated Financial Results for the 1st Half of FY2020 8) RISA Business ▌Operating Income Revenues and operating income (Billions of Yen) both increased significantly due to FY2019 FY2020 2Q 2Q Y/Y Change fund business and the sale of real Asset Business Revenues 3.1 9.7 +208.7% estate Gross p

  13. Slide 13: Operating Asset Balances

    1. Consolidated Financial Results for the 1st Half of FY2020 9) Operating Asset Balances (Billions of Yen) Leasing/Installment Sales 852.0 Business 808.4 3.8 50.7  Operating asset balance increased 35.2 800 782.7 2.4 65.7 billion yen due to growth in the public 61.1 and private sectors and the succ

  14. Slide 14: Procuring Funds

    1. Consolidated Financial Results for the 1st Half of FY2020 10) Procuring Funds ▌Funding Cost Ratio ▌Composition of Interest-bearing Debt 1.0% Funding cost ratio (%) = Cost of funding / Average Balance of Interest-bearing debt 0.9% 0.8% 0.67% 0.7% 0.63% 0.64% 0.6% 0.5% FY2018 2Q FY2019 2Q FY2020 2Q

  15. Slide 15: Credit Costs

    1. Consolidated Financial Results for the 1st Half of FY2020 11) Credit Costs  Credit costs increased 900 million yen Y/Y due to a decline in the reversal of allowance for doubtful accounts and new provisions. (Billions of Yen) 0.6 0.4 -0.2 0.2 0.1 0.0 -0.7 0.2 -0.0 -0.06 -0.2 -0.5 -0.4 Leasing / I

  16. Slide 16: Consolidated Forecasts for the Fiscal Year Ending March 2020

    2. Consolidated Forecasts for the Fiscal Year Ending March 2020 [FY2020]

  17. Slide 17: Earnings Forecasts

    2. Consolidated Forecasts for the Fiscal Year Ending March 2020 [FY2020] 1） Earnings Forecasts  We have left earnings forecasts unchanged since a higher proportion of earnings posted in 1H had already been priced in to initial forecasts. (Billions of Yen) ▌Forecast FY2020 FY2020 FY2020 Medium-term

  18. Slide 18: Progress with the Medium-Term Plan 2017

    3. Progress with the Medium-Term Plan 2017

  19. Slide 19: Medium-term Plan 2017 Overview

    3-1. Medium-term Plan 2017 <Overview> Build a sustainable business foundation by “completing core areas” and “launching new businesses”. <<Our Group Vision >> To be a global solution service company that aims to enhance social value with customers Establish services unique to Milestones in NEC Capit

  20. Slide 20: Medium-Term Plan 2017: Status of Initiatives 1/2

    3-2. Medium-Term Plan 2017: Status of Initiatives 1/2 1) “Complete core areas”: Establish “services” unique to NEC Capital Solutions Limited that play to its strengths  Establish and deepen strategic partnerships with NEC  Increase in contracts due to stronger affiliation with NEC  Build up prime

  21. Slide 21: Medium-Term Plan 2017: Status of Initiatives 2/2

    3-2. Medium-Term Plan 2017: Status of Initiatives 2/2 2) “Develop new businesses”: Establish sustainable “new business” models that are unique to NEC Capital Solutions Limited, including non-financial businesses.  Establish new business models in new areas (energy, agriculture, healthcare, and tour

  22. Slide 22: Disclaimer

    The presentation materials are solely for the purpose of providing corporate information of NEC Capital Solutions Limited and not for soliciting purchase, sale, or investment in securities issued by the Company. We ask for the discretion of investors in making investment decisions. The presentation

  23. Slide 23: NEC Capital Solutions Group Vision (Japanese disclaimer)

    本資料に記載されている株主・投資家向け情報は、投資勧誘・保証を目的として作成された ものではありません。実際に投資を行う際は、ご利用者ご自身のご判断において行われるよ うお願い致します。 本資料に記載されている当社の計画、戦略および業績見通しは、将来の予測であって、リス クや不確定な要因を含んでおります。 また、本資料に記載されている経営目標は予想ではなく、将来の業績に関する経営陣の現在 の予想を反映したものでもありません。むしろ、経営陣が事業戦略の実行を通じて達成しよ うとする目標であります。 NEC Capital Solutions Group Vision 実際の業績等は、さまざまな要

  24. Slide 24: Orchestrating a brighter world

    \ Orchestrating a brighter world NEC

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