Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — FY2022 Earnings Presentation
52 slides from Fuyo General Lease's earnings presentation, May 12, 2023
Slide 1: Financial Results Briefing for FY2022 IR Presentation
Financial Results Briefing for FY2022 IR Presentation Fuyo General Lease Co., Ltd. Securities code:8424 May 12,2023
Slide 2: Agenda
１．Overview of consolidated operating results and business activities P3 ２．Medium-term Management Plan 「Fuyo Shared Value 2026」 P11 ３．Earnings forecast and dividend policy P40 ４．Appendix P43 Earnings forecasts and other forward-looking statements provided in this material are based on the information
Slide 3: FY2022 Overview of consolidated operating results
FY2022 Overview of consolidated operating results 3
Slide 4: FY2022 results
Overview of consolidated operating results and business activities 1 FY2022 results ⚫ Profit before interest expenses surpassed ¥100.0 billion for the first time as a result of achieving balanced profit growth in business domains positioned as growth drivers. ⚫ Profit at each level reached a record
Slide 5: Profit before interest expenses; ordinary profit, profit, and ROE
Overview of consolidated operating results and business activities ２ Profit before interest expenses ３ Ordinary profit, profit, and ROE ⚫ Profits in Lease continued to increase mainly ⚫ Reset record-highs for ordinary profit and profit owing to growth in aircraft and real estate. for consecutive yea
Slide 6: Factors causing the increase in ordinary profit
Overview of consolidated operating results and business activities ４ Factors causing the increase in ordinary profit （¥100 million） －43 +100 +31 －16 －4 597 527 Ordinary Ordinary profit profit 1 2 3 4 FY2021 Profit before Personal/equipment Interest expenses Revasal of credit Non-operating FY2022 int
Slide 7: Changes in funding
Overview of consolidated operating results and business activities ５ Changes in funding ⚫ Financing from bonds payable (including hybrid bonds) and long-term borrowings was expanded amid continuing increases in operating assets. ⚫ Funding costs rose partly due to an increase in funding from foreign
Slide 8: Changes in costs; net assets and equity ratio
決算概況 Overview of consolidated operating results and business activities ６ Changes in costs 7 Net assets and the shareholders’ equity ratio ⚫ Stable profit growth enabled the accumulation ⚫ The increase in personnel expenses is mainly of net assets. due to the Group’s expansion. ⚫ The shareholders’ e
Slide 9: Newly executed contract volume
Overview of consolidated operating results and business activities ８ Newly executed contract volume ⚫ Shifted to highly profitable Operating leases and newly executed contract volume exceeded Finance leases. ⚫ Growth of newly executed contract volume in Financing, driven by Energy & Environment and
Slide 10: Operating assets, ROA
Overview of consolidated operating results and business activities 9 Operating assets, ROA ⚫ Operating assets increased in Operating leases and Financing driven by Energy & Environment and Real Estate. ⚫ ROA improved steadily as assets continued to increase following higher profitability. Operating
Slide 11: Medium-term Management Plan Fuyo Shared Value 2026
Medium-term Management Plan Fuyo Shared Value 2026 11
Slide 12: Overview of Fuyo Shared Value 2026
Medium-term Management Plan Overview of Fuyo Shared Value 2026 Pursuing sustainable growth as a corporate group by practicing CSV (Creating Shared Value) to resolve social issues while at the same time delivering economic value Vision for New Fuyo Shared Value 2026 Medium-term Achieving sustainable
Slide 13: Management Goals: Financial and Non-financial Goals
Management Goals Financial/Non-financial Goals • Pursue sustainable profit growth by further improving profitability and sustaining the growth we have achieved to date. • Enhance corporate value by realizing a decarbonized society and resolving other social issues. Management Goals Financial Goals N
Slide 14: Non-financial Goals
*1 Diversity and inclusion *2 Work-life balance Management Goals Non-financial Goals Other related goals are set, including the percentage of male employees taking paternal leave. Results for Target value Item FY2022 For FY2026 Remarks Contribution to CO2 reduction 220,000 500,000 t-CO2/year t-CO2/y
Slide 15: Improved External Ratings
External evaluation Improved External Ratings ◼ Rating agencies upgraded issuer ratings and Issue Rating forecasts in recognition of improved earning power and financial health, and other factors. Rating and Investment Japan Credit Rating Information, Inc. Agency, Ltd. ◼ We aim to further improve ra
Slide 16: Business Domain-Specific Results and Topics
Business Domain-Specific Results and Topics (Change of the business domain name) "Medical & Social Welfare" has been changed to "Healthcare" effective from the current fiscal year. 16
Slide 17: Zone Management
Positioning of Business Domains Zone Management • In addition to helping our customers resolve their management issues, we contribute to creating value through projects such as jointly run businesses with our partners. • Invest our management resources in the Transformation Zone in our efforts to al
Slide 18: Business Domain-Specific Results
General Business Domain-Specific Results FY2021 FY2022 YoY change Ordinary Operating Ordinary Operating Ordinary Operating ROA ROA ROA （¥100 million） profit assets profit assets Profit Assets Rising Transformation 33 1.9% 1,641 57 3.4% 1,713 +24 +1.5pt +72 (Mobility) Accelerating 67 - 2,282 73 - 2,6
Slide 19: Business Domain-Specific Results (Comments)
General Business Domain-Specific Results (Comments) Profit increased mainly driven by growth driver business domains. • Contribution from gain on sales of vehicles due to the soaring used car market as well as growth in rental income overseas. Mobility • The balance of operating assets increased as
Slide 20: Mobility (1)
Rising Transformation Mobility (1) Achieved steady profit growth backed by strong used car market ■ Ordinary profit and ROA for the (¥100 million) FY2022 results mobility business 57 ⚫ Contribution from increased gain on sales of used cars due to soaring used car prices and growth in the share of pr
Slide 21: Mobility (2) Initiatives to Expand Business Domains
Rising Transformation Mobility（2）Initiatives to Expand Business Domains Expansion of the business domain through collaboration with partners Community EV Bus（Launched in spring 2021） Vehicles area Concluded a capital and business agreement with EV Motors Japan ◼ Entered into a capital and business a
Slide 22: Circular Economy (CE)
Rising Transformation Circular Economy（CE） Progress is being made in efforts to realize a recycling-oriented society. Circular Economy Lease（CE Lease） Waste recycling service for Kamogawa Sea World • Initiatives premised on customers agreeing to the nature of product in the CE. • We provided the was
Slide 23: Energy & Environment (1)
Accelerating Transformation Energy & Environment (1) The renewable energy business performed well in line with the expansion of business domains in the U.S. and Europe. ■Ordinary profit and ROA FY2022 results for the Energy & Environment (¥100 million) business 20 ⚫ The renewable energy business gre
Slide 24: Energy & Environment (2) Expand renewable energy business
Energy & Environment Accelerating Transformation (2) Expand renewable energy business Expanding the renewable energy business mainly in Europe and the U.S. U.K./ offshore wind power generation project Texas, U.S.A./Solar power generation business ◼ Participated in two large-scale ◼ Large-scale power
Slide 25: BPO/ICT (1)
Accelerating Transformation BPO/ICT (1) Expanding the business domain while simultaneously realizing steady growth. ■Ordinary profit and ROA for the BPO/ICT business The ROA figures shown here are based on the results from the ICT business. FY2022 Results 35 （¥100 million） ⚫ Increased profit through
Slide 26: BPO/ICT (2) Expansion of the Service Domain
Accelerating Transformation BPO/ICT (2) Expansion of the Service Domain Acquisition of new solutions to help customers reform their business processes Became our consolidated subsidiary in October 2022 February, 2023 consolidation of a subsidiary Video production and distribution IT Facility Service
Slide 27: BPO/ICT (3): Business Process Service
Accelerating Transformation BPO/ICT (3): Business Process Service Stepping up efforts in the Business Process Service. Business Process Service (BPS), a total solution utilizing "outsourcing and DX" of processes Expansion of business efficiency needs and workstyle reforms BPO ICT Accounting & billin
Slide 28: Healthcare (1)
Accelerating Transformation Healthcare（1） Advancing group-based business development to expand the business domain ■ Ordinary profit and ROA for the Helthcare business （¥100 million） FY2022 Results 18 18 ⚫ The accumulation of medical/nursing fee receivable factoring operating asset balance showed sl
Slide 29: Healthcare (2) Region-Specific Healthcare Fund
Accelerating Transformation Healthcare（2） Region-Specific Healthcare Fund Contribution to building a stable healthcare base in the region by providing a wide range of products and services. Image of Healthcare Fund Solve management issues Various services utilizing financial 77 Bank Group Medical an
Slide 30: Real Estate
Growing Performance Real Estate Advancing asset accumulation that appropriately addresses changes in the market environment. FY2022 Results ■ Ordinary profit and ROA for the ⚫ Accumulated operating assets by offsetting the impact of exit of large Real Estate business （¥100 million） real estate lease
Slide 31: Aircraft
Growing Performance Aircraft Accurately captured the needs in recovering markets, resulting in an increase in orders. FY2022 Results ■ Ordinary profit and （¥100 million） ⚫ In FY2022, the turnover-type business was off to a good start with 5 new ROA for the Aircraft business 42 aircraft and 1 aircraf
Slide 32: Towards Sustainable Value Creation
Towards Sustainable Value Creation 32
Slide 33: Non-financial Goals and Business Domains
Non-financial Goals and Business Domains Non-financial Goals and Business Domains Realizing a prosperous society and contributing to sustainable growth Expanding business domains and promoting further evolution in our relentless attempt to create new value Anticipating social changes and taking on t
Slide 34: Initiatives to Reduce Greenhouse Gas Emissions
Realization of a decarbonized society Initiatives to Reduce Greenhouse Gas Emissions Avoided emissions in the Group Avoided emissions by customers and communities Joined RE100 2012 Started renewable energy support for renewable energy-related Investment in and commercialization (first by Japanese co
Slide 35: Fund Procurement through ESG Finance
ESG Finance Fund Procurement through ESG Finance Pursuing the CSV-oriented business strategies and ESG finance initiatives in terms of funding Advancing diverse funding methods and stepping up efforts to address climate change and social issues, thereby contributing to the realization of a sustainab
Slide 36: Investment in Human Resources
Investment in Human Resources Investment in human capital (Establishment of the Fuyo Shared Value Creation Center) Establish the “Fuyo Shared Value Creation Center,” an ecosystem for growth and learning, while at the same time promoting an unprecedented and aggressive investment in human resources i
Slide 37: Health and Productivity Management; Autonomous Human Resource Development
Health and Productivity Management Investment in human capital Autonomous Human Resource Development Focusing on aggressively investing in human resources to cultivate high- value-added human resources that underpin sustainable growth. Health and Productivity Management Cafeteria Plan ⚫ Redesigned t
Slide 38: Progress in DX Strategies
DX Strategy Progress in DX Strategies Address social issues by effectively utilizing digital technology and taking advantage of the business bases, networks, data, and knowledge held by the Fuyo Lease Group. Became a “DX-certified” business operator provided Topics① by the Ministry of Economy, Trade
Slide 39: Fuyo-Joshibi Venus Fund
Community Engagement Fuyo-Joshibi Venus Fund ◼ Established the Fuyo-Joshibi Venus Fund jointly with Joshibi University of Art and Design in 2021, for the purpose of supporting students who aspire to become artists. ◼ Three works are currently on exhibit in the Sumitomo Realty & Development Kojimachi
Slide 40: Earnings forecast and dividend policy
Earnings forecast and dividend policy 40
Slide 41: FY2023 consolidated earnings forecast
Earnings forecast and dividend policy 1 FY2023 consolidated earnings forecast FY2022 FY2023 （¥100 million） Results Forecast Net sales 6,887 7,000 Operating profit 516 570 Ordinary profit 597 640 Profit attributable owners of parent 389 430 Basic earnings per share 1,299.27 1,434.09 Copyright(C) Fuyo
Slide 42: Dividend policy
Earnings forecast and dividend policy ２ Dividend policy Total dividend is ¥343, which is ¥27 higher than the year-beginning dividend forecast (¥316). FY2022 results Dividend payout ratio is 26.4%. Total dividend forecast is ¥390 (increased ¥47 year on year), and dividend payout is 27.2% FY2023 forec
Slide 43: Appendix
Appendix 43
Slide 44: Key topics (1)
Appendix 1 Key topics（1） Signed a lease contract for freighters (dedicated cargo flights) with Yamato Transport Mobility Aircraft - Renovated passenger aircraft into freighters for leasing - Aircraft Staffed our U.S.-based aircraft lease subsidiary and the subsidiary started operations 1Q Formed a b
Slide 45: Key topics (2)
Appendix 1 Key topics（2） Acquired Human CentriX Co., Ltd., which has a top-level record in Japan in the video BPO/ICT production/distribution business for BtoB companies, as a consolidated subsidiary OKI and Fuyo Lease formed a business alliance in the area of outsourcing for IT BPO/ICT operations 3
Slide 46: Summary of consolidated operating results
Appendix ２ Summary of consolidated operating results *1 Excluding interest expenses *2 Gross profit before interest expenses （¥100 million） YoY FY2018 FY2019 FY2020 FY2021 FY2022 Change Net sales 6,181 7,123 7,403 6,578 6,887 +308 Cost of sales＊1 5,428 6,265 6,478 5,596 5,804 +208 Profit before inte
Slide 47: Segment results (Consolidated)
Appendix ３ Segment results（Consolidated） ＊1 Gross profit before interest expenses Leases Installment sales Leases and Installment sales Total （¥100 million） FY2021 FY2022 YoY Change YoY Change FY2021 FY2022 Change YoY YoY Change FY2021 FY2022 Change YoY YoY Change results results （amount） （％） result
Slide 48: Operating assets
Appendix ４ Operating assets （¥100 million） YoY YoY FY2018 FY2019 FY2020 FY2021 FY2022 Change Change (amount) (％) Leases 15,648 16,136 17,133 16,916 16,882 -34 -0.2% Finance leases (10,835) (11,068) (10,808) (10,198) (8,908) (-1,290) (-12.6%) Operating leases (4,813) (5,068) (6,325) (6,718) (7,974) (
Slide 49: Newly executed Contract Volume
Appendix ５ Newly executed Contract Volume YoY YoY （¥100 million） FY2018 FY2019 FY2020 FY2021 FY2022 Change Change (amount) (％) Leases 5,300 5,445 4,536 4,741 4,611 -131 -2.8% Finance leases (3,724) (3,654) (3,080) (2,594) (2,291) -303 -11.7% Operating leases (1,576) (1,791) (1,455) (2,147) (2,320) +
Slide 50: Newly executed lease contract volume (by type of equipment)
Appendix ６ Newly executed lease contract volume (by type of equipment) YoY Change セグメント名 （¥100 million） FY2020 FY2021 FY2022 (amount) IT & office equipment 1,588 1,254 1,217 -37 Industrial machinery 276 224 105 -119 Civil engineering and construction machinery 91 61 36 -25 Transportation equipment 3
Slide 51: Summary of the operating results of the major subsidiaries
Appendix ７ Summary of the operating results of the major subsidiaries Sharp Finance Corporation Fuyo Auto Lease Co., Ltd. YAMATO LEASE CO., LTD. Accretive Co., Ltd. (ownership ratio: 65%) (ownership ratio: 100%) (ownership ratio: 60%) (ownership ratio: 74%) （¥100 million） FY2021 FY2022 YoY change FY
Slide 52: Going Where No One Has Gone Before
“Going Where No One Has Gone Before” FUYO GENERAL LEASE CO., LTD. 52