Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — FY2017 Earnings Presentation
35 slides from Fuyo General Lease's earnings presentation, May 14, 2018
Slide 1: Financial Results briefing for FY2017
Financial Results briefing for FY2017 IR Presentation May 14, 2018 FUYO GENERAL LEASE CO., LTD. 1
Slide 2: Agenda
Agenda 1. Overview of consolidated operating results 2. Overview of business activities 3. Progress on “Frontier Expansion 2021” Medium-term Management Plan 4. Operating results forecast and dividend policy 5. Appendix Earnings forecasts and other forward-looking statements provided in this material
Slide 3: FY2017 results
1. Overview of consolidated operating results (1) FY2017 results Record high profits: Ordinary profit highest since FY2011, and profit attributable to owners of parent up for three consecutive years. Newly executed contract volume surpassed the 1 trillion mark for the first time. (¥100 million) YoY
Slide 4: Changes in total revenues, ordinary profit, and profit attributable to owners of parent
1. Overview of consolidated operating results (2) Changes in total revenues, ordinary profit, and profit attributable to owners of parent Total revenues Ordinary profit and profit attributable to owners Revenues increased significantly, mainly of parent due to the accumulation of operating Ordinary
Slide 5: Factors affecting ordinary profit
1. Overview of consolidated operating results (3) Factors affecting ordinary profit ・ The growth in profit before interest expenses (+¥5.5 billion) mainly attributable to an increase in lease earnings and the consolidation of Accretive Co., Ltd. was directly linked to an increase in profit. ・ Exclud
Slide 6: Profit before interest expenses
1. Overview of consolidated operating results (4) Profit before interest expenses Leases : Profit before interest expenses increased by [Leases segment] Asset balance and gross margin on assets continued accumulation of operating assets.in both the Leases and Financing segments. (¥100 million) (%) 1
Slide 7: Changes in funding
1. Overview of consolidated operating results (5) Changes in funding ・Ｄｕｅ to an increase of operating assets ,the funding balance increased by 6%． ・Interest expenses rose only 3% because of lower funding costs. (¥100 million) Funding balance, (¥100 million) Interest expenses, funding costs (*1) dire
Slide 8: Changes in costs; net assets and equity ratio
1. Overview of consolidated operating results (7) Changes in net assets and (6) Changes in costs equity ratio ・Credit-related cost maintained at a favorable level. ・Net assets increased steadily. ・Total personnel/equipment expenses increase of ・Equity ratio improved amid growth in operating assets 1
Slide 9: Newly executed contract volume; operating assets and ROA
2. Overview of business activities (1) Newly executed contract volume (2) Operating assets・ROA ・Due to the sharp growth in the financing such as factoring of Accretive, newly executed contract volume surpassed the 1 trillion mark for the first Built up portfolio of high-quality assets with focus on
Slide 10: Newly executed lease contracts volume (by type of equipment)
2. Overview of business activities (3) Newly executed lease contracts volume (by type of equipment) ・Driven by buildings, etc. (real estate leasing) ・Stricter selection of IT equipment projects, (¥100 million) which have tough economic conditions 6,000 (¥100 million) YoY Other change 5,000 Segment F
Slide 11: Frontier Expansion 2021 Medium-term Management Plan
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Medium-term Management Plan Frontier Expansion 2021 “Going Where No One Has Gone Before” Aiming to be a corporate group that moves into uncharted businesses and continues to expand the frontier 11
Slide 12: Goals (Target Performance Indicators)
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (1) Goals (Target Performance Indicators) Target Value Interim Goal FY2017 Indicator FY2021 FY2019 results Operating ¥2,300- ¥2,168.7 ¥2,500 billion billion assets ¥2,400 billion ROA 2.0% 1.7-1.8% 1.67% ¥38-
Slide 13: The core strategies
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (2) The 3 core strategies 1) Selection and Concentration Strategic Areas in Strategic Areas 2) Challenge the Frontier Frontier 3) Pursue Group Synergies Group 13
Slide 14: Schematic representation of strategies
Frontier Expansion 2021 3. Progress on “Frontier Expansion 2021” Medium-term Management Plan (3) Schematic representation of strategies Interim Target Goal Value Operating assets Operating ¥2,500 billion ¥2,300-¥2,400 billion Ordinary profit Numerical assets Ordinary ¥2,168.7 billion ¥2,043.6 billio
Slide 15: Selection and Concentration in Strategic Areas
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (4) Selection and Concentration in Strategic Areas Strategic Areas Core Areas Areas positioned as growth Areas designated for market drivers and designated for (customer base) concentration of maintenance an
Slide 16: Position of Each Business
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (5) Position of Each Business Disruptive Innovations Sustaining Innovations Transformation Zone Performance Zone Payout (Deliver results from existing (Grow new businesses) period: 2-3 businesses) Performanc
Slide 17: Real Estate: operating assets expanded steadily
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (6) 1. Real Estate Areas Operating assets expanded steadily supported in part by contracts for large projects (¥100 million) (%) 4.0 Target Operating assets and ROA of Plan ・Greatly increasing oper
Slide 18: Real Estate: expanding domains
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (6) 2. Real Estate Areas Expanding domains: Build high-quality assets through scheme and market expansion Scheme Expansion: Bridge-type transactions Business opportunity Increase in bridge-type tra
Slide 19: Real Estate: operating assets by building use
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (6) 3. Real Estate Areas Operating assets: Increase operating assets with bridge-type project initiatives while focusing on commercial properties Breakdown of real estate leases by building use Ope
Slide 20: Energy/Environment
Frontier Expansion 2021 3. Progress on “Frontier Expansion 2021” Medium-term Management Plan Strategic (7) Energy/Environment Areas Start of operations of our largest-scale solar power plant/Existing sites also proceeding steadily (%) 20.0 (¥100 million) Target [Solar Power Generation Business] Oper
Slide 21: Medical/Social Welfare: strategic vision
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (8) 1. Medical/Social Welfare Areas Strategic vision for the Medical/Nursing Care sector (example: support for comprehensive community care systems) Community healthcare collaboration institutions
Slide 22: Medical/Social Welfare: partner initiatives
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (8) 2. Medical/Social Welfare Areas Initiatives involving cooperation with partners focused on business tie-ups and investment ・ Invested in R&D-type venture company ✔Riverfield Inc. Plans to comme
Slide 23: Aircraft
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (9) Aircraft Areas As the market heats up, accumulate projects while being selective (¥100 million) Target (%) Aircraft leasing of 4.0 1) Arranged leases for six self-owned aircraft this operating
Slide 24: Overseas
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic (10) Overseas Areas Accumulate high-quality non-Japanese assets by acquiring foreign-based companies Overseas = Business of overseas subsidiaries ・Made Canadian pickup truck rental and leasing excl
Slide 25: New Domains - Accretive
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic Frontier Group (11) 1. New Domains - Accretive Business Areas Increase transactions by approaching Group customers FPS Medical (early payment of medical and nursing care fees receivable) Accretive
Slide 26: New Domains: collaborations and investments
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan Strategic Frontier Group (11) 2. New Domains Areas Promote collaborations and investments with focus on cutting-edge technology R&D businesses Primary Results from FY2017 Format Partner Features Establishmen
Slide 27: Pursue Group Synergies
3. Progress on “Frontier Expansion 2021” Frontier Expansion 2021 Medium-term Management Plan (12) Pursue Group Synergies Group Steadily deliver results from new initiatives through intra-Group collaboration Products/services Markets Insurance agent Fuyo Building leases vendor leases SFC General New
Slide 28: FY2018 consolidated operating results forecast
4. Operating results forecast and dividend policy (1) FY2018 consolidated operating results forecast (¥100 million) FY2017 Actual FY2018 Forecast Total revenues 5,902 6,000 Operating profit 326 340 Ordinary profit 352 375 Profit attributable to owners of parent 219 230 Basic earnings per share ¥726.
Slide 29: Dividend policy
4. Operating results forecast and dividend policy (2) Dividend policy FY2017 dividend payment of ¥146, ¥10 more than the initial forecast (¥136), and dividend payout ratio of 20.1% FY2018 dividend forecast of ¥156, a ¥10 increase from FY2017 (Yen) Changes in dividend 146 156 130 78 100 80 70 74 62 6
Slide 30: Summary of consolidated operating results
5. Appendix (1) Summary of consolidated operating results (¥100 million) YoY change FY2013 FY2014 FY2015 FY2016 FY2017 (FY2016 to FY2017) Total revenues 4,417 4,723 4,937 5,070 5,902 +832 Total costs 3,945 4,237 4,426 4,519 5,298 +779 Interest expenses (68) (66) (69) (71) (73) (+2) Gross profit 472
Slide 31: Segment Results (Consolidated)
5. Appendix （2）Segment Results （Consolidated） (¥100 million) Leases and Installment sales Leases Installment sales total YoY change YoY change YoY change FY2016 FY2017 YoY change (%) FY2016 FY2017 YoY change (%) FY2016 FY2017 YoY change (%) (amount) (amount) (amount) Total revenues 4,232 5,112 +880
Slide 32: Newly executed contract volume
5. Appendix (3) Newly executed contract volume (¥100 million) YoY change YoY change (amount) FY2013 FY2014 FY2015 FY2016 FY2017 (FY2016 to (%) (FY2016 to FY2017) FY2017) Leases 3,976 3,968 4,536 5,234 5,636 +402 +7.7% Finance leases (3,599) (3,311) (3,644) (3,958) (4,052) (+94) (+2.4%) Operating lea
Slide 33: Operating assets
5. Appendix (4) Operating assets (¥100 million) YoY change YoY change (amount) 14/3 15/3 16/3 17/3 18/3 (FY2016 to (%) (FY2016 to FY2017) FY2017) Leases 11,528 11,765 12,440 13,698 14,744 +1,046 +7.6% Finance leases (9,680) (9,649) (10,060) (10,486) (10,988) (+501) (+4.8%) Operating leases (1,848) (
Slide 34: Overview of non-consolidated results and principal consolidated companies' results
5. Appendix (5) Overview of non-consolidated results and principal consolidated companies’ results (¥100 million) Sharp Finance Fuyo General Lease Co., Fuyo Auto Lease Co., Ltd. Accretive Co., Ltd. Corporation Ltd. (Non-consolidated) (Ownership ratio: 100%) (Ownership ratio: 51%) (Ownership ratio: 6
Slide 35: Going Where No One Has Gone Before
“Going Where No One Has Gone Before” 35