Slide 1: NEC Leasing, Ltd. Results Presentation
NEC Leasing, Ltd. Results Presentation for the Fiscal Year Ended March 31, 2007 April 27, 2007
Slide 2: Contents
Contents 1. Report of Financial Results for 3. Plans for the Fiscal Year Ended the Fiscal Year Ended March 31, March 31, 2008 2007 Financial Results Forecast Financial Summary Status quo of Medium-Term Net Sales and Gross Profits by Business Plan and Future Business Direction Contracts Executed by D
Slide 3: Financial Summary
1. Report of Financial Results for the Fiscal Year Ended March 31,2007 Financial Summary billion yen YoY Net Sales Ordinary Income Net Income Net Income per Share (Yen) Operating Assets Net Assets Equity Ratio Dividends per Share (Yen) (Amounts are rounded off to the nearest 100 million yen) 2
Slide 4: Net Sales and Gross Profits by Business
Net Sales and Gross Profits by Business (billion yen) 3/2006 (FY) 3/2007 (FY) YoY change 246.2 227.5 3.6 15.0 247.4 228.9 4.5 14.0 1.2 -1.1 1.8 0.0 0.3 1.6 1.9 0.0 0.3 1.6 0.1 0.0 17.3 14.5 0.0 2.7 16.5 14.4 0.0 2.0 -0.9 -0.7 265.3 242.1 3.9 19.3 265.7 243.3 4.9 17.6 0.4 -1.8 (Amounts are rounded of
Slide 5: Contracts Executed by Business
Contracts Executed by Business billion yen) YoY change % Leasing Business Loan Business Installment Sales Business Loans Other Business Total (Amounts are rounded off to the nearest 100 million yen) Note: Total acceptance basis 4
Slide 6: Leasing Business: Contracts Executed by Equipment
Leasing Business: Contracts Executed by Equipment YoY Change % Information and Communication Equipment Computers Hardware Computers Software Telecommunication Equipment Office Equipment Other Equipment Total Amounts are rounded off to the nearest 100 million yen Note: Total acceptance basis 5
Slide 7: Operating Assets by Business
Operating Assets by Business (billion yen) Loan Leasing (Amounts are rounded off to the nearest 100 million yen) 6
Slide 8: Non-performing Loans
Non-performing Loans billion yen Bankruptcy (%) = Amount of new bankruptcy / (Average balance of operating assets + Average balance of fixed operating loans) Amount of bankruptcies Bankruptcy rate (net of allowance of losses) (Amounts are rounded off to the nearest 100 million yen) 7
Slide 9: Funding
Funding Composition of interest-bearing debts Cost of funding ratio Short-term loans Long-term loans Direct funding ratio Bonds Cost of funding ratio(%) = Cost of funding / average balance of Securitization interest - bearing debts 8
Slide 10: Highlight: Business Environment
2. Highlight for the Fiscal Year Ended March 31, 2007 Business Environment New Medium-Term Business Plan Embarkation facing strong headwinds Interest rate hike and delay in passing it on to customer Difficulty for manufacturer affiliated leasing company (also has an advantage during a period of in
Slide 11: Marketing Strategy
Results for the Fiscal Year Ended March 31, 2007 1-1 Marketing Strategy a Collaborative with NEC Group Expanding ICT solution business (Rental Business, PC-PIT) Strengthening cooperation with NEC Operation Department at planning level Expanding activities of Planning Operation Group of Headquart
Slide 12: Marketing Strategy: Expansion of business portfolio
Results for the Fiscal Year Ended March 31, 2007 1-2 Marketing Strategy c Expansion of business portfolio Further expansion of small ticket leasing business Realizing 11% growth over previous fiscal year Developing ICT solutions business Challenging the rental business Expanding financing busi
Slide 13: Funding Strategy and Efficient Management
Results for the Fiscal Year Ended March 31, 2007 2 Funding Strategy Flexible risk-takingImpact of interest rate hike minimized 9 CP limit expanded¥160billion ¥250billionFiscal year end balance ¥206 billion) 3 Strategy for more efficient management, operations and cost Enhancing corporate governa
Slide 14: Further enhancement of CSR management
Results for the Fiscal Year Ended March 31, 2007 4 Further enhancement of CSR management Establishing Corporate Social Responsibility Promotion Division Establishing guidelines for social contribution 9 Establishing School Biotope Project in cooperation with NPO Asaza Fund Enhancement of Compa
Slide 15: Plans for FY Ended March 31, 2008: Financial Results Forecast
3.Plans for the Fiscal Year Ended March 31, 2008 Financial Results Forecast (billion yen) Actual) (Forecast) Net Sales Ordinary Income Net Income Net Income per Share (Yen) (Amounts are rounded off to the nearest 100 million yen) 14
Slide 16: Status quo of Medium-Term Business Plan and Future Direction
Status quo of Medium-Term Business Plan and Future Direction Points of difference from assumed Medium-Term Business Plan Impact of interest rate hike per fiscal year Fiercer competition within leasing industry Increased reserve by small ticket leasing business Medium-term Countermeasures Enh
Slide 17: Dividend Forecast
Dividend Forecast Dividends per share Interim Year-end Annual Forecast for 3/2008 22.00 22.00 44.00 Actual 3/2007 22.00 22.00 44.00 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 ¥ 59.3 billion (as of March 31, 2007) 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