Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — H1 FY2024 Earnings Presentation
37 slides from Mizuho Leasing's earnings presentation, Nov 6, 2024
Slide 1: Investor Presentation for the First-Half of FY2024
Investor Presentation for the First-Half of FY2024 Apr. 2024－Sep. 2024 November 6, 2024 ©︎2024 Mizuho Leasing Company, Ltd.
Slide 2: Table of Contents
1 Table of Contents 1. Overview of the First-Half Financial Results for FY2024 2. Progress of Medium-term Management Plan 2025 3. Earnings Forecasts and Shareholder Return 4. Appendix 1
Slide 3: CEO Message
CEO Message 2 ⚫ In the first half of FY2024, profits at each income level grew steadily due to the solid performance of domestic leasing, revenue growth from an operating assets increase in the real estate sector, and contribution from Rent Alpha Pvt. Ltd. ⚫ Net income reached a new record high of 2
Slide 4: 1. Overview of the First-Half Financial Results for FY2024
3 1. Overview of the First-Half Financial Results for FY2024
Slide 5: Summary for FY2024 H1
Summary for FY2024 H1 4 ⚫ Gross profit increased by ¥7.4 bn YoY due to steady accumulation of operating assets that resulted in higher revenue, as well as revenue contribution by Rent Alpha Pvt. Ltd. ⚫ Equity in earnings of affiliates increased by ¥6.8 bn YoY partly due to negative goodwill (¥4.7 bn
Slide 6: Factors behind Changes in Net Income Attributable to Owners of the Parent
Factors behind Changes in Net Income Attributable to Owners of the Parent 5 Gross profit Operating Ordinary (¥bn) +7.4 income income +5.3 +9.1 –3.0 –3.8 +6.8 –0.6 –0.8 –1.7 +11.2 –0.5 25.6 (+7.7) 17.9 (A) (B) (C) (D) (E) (F) FY2023 Gross profit before Funding costs Personnel and Credit costs Earning
Slide 7: Gross Profit and Operating Assets by Business Area
Gross Profit and Operating Assets by Business Area (Main Businesses on page 10–) 6 ⚫ Domestic leasing businesses: Despite the absence of a ¥1.4 bn gain from the cancellation of a large contract in the previous fiscal year, gross profit was steady with a decline of ¥0.6 bn YoY due to initiatives that
Slide 8: Equity in Earnings and Losses of Affiliates
Equity in Earnings and Losses of Affiliates (Non−operating Income and Expenses) 7 ⚫ Performance continued to be steady, even excluding special factor of negative goodwill (¥4.7 bn) associated with the GECOSS capital and business alliance. Domestic: All companies including NIPPON STEEL KOWA REAL ESTA
Slide 9: Funding
Funding 8 ⚫ Funding costs are on an upward trend due to an increase in the balance of interest-bearing debt in line with business expansion and rising yen interest rates. ⚫ Stable fundraising through diversified procurement methods, such as sustainable financing. Outstanding Interest−Bearing Debt (¥
Slide 10: 2. Progress of Medium-term Management Plan 2025
9 2. Progress of Medium-term Management Plan 2025 i. Progress of Main Businesses ii. Inorganic Growth Strategy iii. Strengthen and Further Sophisticate Corporate Systems to Support Growth
Slide 11: Progress of Main Businesses (1): Domestic Leasing (i)
1. Progress of Main Businesses (1): Domestic Leasing (i) Core 10 Business Performance Ambition (¥bn) (Domestic Leasing Businesses) Co-create value as a strategic business partner Gross profit Earnings from affiliates Operating assets 30.0 1,600.0 1,590.0 1,580.0 for clients 1,394.6 1,386.2 1,570.0 1
Slide 12: Domestic Leasing (ii): Promote circular economy
1. Progress of Main Businesses (1): Domestic Leasing (ii) Core × Frontier 11 Promote circular economy ⚫ Established a joint venture named METREC Co., Ltd. with TRE Holdings. ⚫ Providing one-stop solutions and support for waste-related issues and resource recycling, as well as environmental protectio
Slide 13: Domestic Leasing (iii): Initiatives in new businesses
1. Progress of Main Businesses (1): Domestic Leasing (iii) Core × Frontier 12 Initiatives in new businesses ⚫ Accelerating efforts that increase the penetration of EVs to achieve carbon neutrality. EVs and storage batteries Proof-of-concept for shifting to EVs for Began providing “EV Marutto Service
Slide 14: Progress of Main Businesses (2): Real Estate (i)
1. Progress of Main Businesses (2): Real Estate (i) Core 13 Business Performance Ambition (¥bn) (Real estate business) Simultaneously expand existing businesses and Gross profit Earnings from affiliates Operating assets 27 1,115.3 1,200.0 create new ones 22 868.8 1,000.0 ⚫ Expand stable profit sourc
Slide 15: Progress of Main Businesses (2): Real Estate (ii)
1. Progress of Main Businesses (2): Real Estate (ii) Core 14 Topics Portfolio Balance as of September 30, 2024 Development Projects (Creating an Original Brand) Loans Office 7% 5% Office <MipLa> 24% Equities 14% Residence 13% • Brand concept 34% Logistics Overseas funds Mi means “My” in Spanish Prod
Slide 16: Progress of Main Businesses (3): Environment and Energy (i)
1. Progress of Main Businesses (3): Environment and Energy (i) Growth 15 Business Performance Ambition (¥bn) (Environment and energy businesses) Gross profit or loss Operating assets Secure renewable energy sources and create 2 113.1 120.0 new business opportunities ⚫ Establish a strong presence as
Slide 17: Progress of Main Businesses (3): Environment and Energy (ii)
1. Progress of Main Businesses (3): Environment and Energy (ii) Growth 16 Renewable energy generation capacity (Results and Targets) Topics • There was only a slight increase in the number of projects during FY2024 H1 due to selectivity around profitability, Investment and Participation in Grid Stor
Slide 18: Progress of Main Businesses (4): Global/Marubeni Alliance (i)
1. Progress of Main Businesses (4): Global/Marubeni Alliance (i) Growth 17 Business Performance Ambition (¥bn) (Overseas business) Gross profit Earnings from affiliates Operating assets Expand business fields with inorganic 15 110.0 investments 97.9 100.0 13 90.0 ⚫ Expand client base, focusing on ma
Slide 19: Progress of Main Businesses (4): Global/Marubeni Alliance (ii)
1. Progress of Main Businesses (4): Global/Marubeni Alliance (ii) Growth 18 ⚫ Have strengthened collaboration with Marubeni in order to expand business areas since the conclusion of the capital and business alliance agreement in May 2024. ⚫ Accepted executives and employees from Marubeni, and levera
Slide 20: Inorganic Growth Strategy
ii. Inorganic Growth Strategy 19 ⚫ Allocating ¥150 bn for inorganic investment to expand and scale up business areas in core and growth areas and to create new businesses in frontier areas. Made approximately ¥50 bn in investments as of the first half of FY2024. ⚫ Promoting collaboration with invest
Slide 21: Strengthen and Further Sophisticate Corporate Systems to Support Growth
iii. Strengthen and Further Sophisticate Corporate Systems to Support Growth 20 ⚫ Implemented various measures to achieve future growth and expand business areas. ⚫ Strengthened the quality of our human capital and moved ahead in building a diverse human capital portfolio. At the same time, made ste
Slide 22: 3. Earnings Forecasts and Shareholder Returns
21 3. Earnings Forecasts and Shareholder Returns
Slide 23: Progress Toward Earnings Forecasts for FY2024
Progress Toward Earnings Forecasts for FY2024 22 ⚫ Net income attributable to owners of the parent for the first half of FY2024 was ¥25.6 bn, representing a progress rate of 67% against the earnings forecast for the fiscal year. ⚫ The Company’s earnings forecast for the current fiscal year will rema
Slide 24: Shareholder Returns
Shareholder Returns 23 ⚫ Based on the basic policy to “pay dividends commensurate with performance while improving profitability,” we will increase the dividend payout ratio to 30% during this medium-term management plan. At the same time, we will effectively use retained earnings to strengthen our
Slide 25: 4. Appendix
24 4. Appendix
Slide 26: Main News & Topics in FY2024 (1/3)
Main News & Topics in FY2024 (1/3) 25 Date Contents Apr. 1, Consolidated subsidiaries ML Power Company, Limited began operations Environment 2024 —Strengthening group companies structure in order to expand the environment and energy-related businesses and energy Concluded a business alliance agreeme
Slide 27: Main News & Topics in FY2024 (2/3)
Main News & Topics in FY2024 (2/3) 26 Date Contents July 1, Signed a service agreement with Motion Inc. for EV introduction and additional consulting services EVs/Storage —Collaboration on the introduction of and additional consulting for EVs and other electric mobility for the “EV Marutto Service”
Slide 28: Main News & Topics in FY2024 (3/3)
Main News & Topics in FY2024 (3/3) 27 Date Contents Aug. 6, Launched “EXPO CIRCULAR MARKET MYAKU-ICHI!” a reuse matching for Expo 2025 Osaka —Promoting reuse of facilities and equipment throughout the country, reducing industrial waste, and helping to bring about a Circular economy 2024 circular eco
Slide 29: Overview of Medium-Term Management Plan 2025: Multi-Layered Business Portfolio
Overview of Medium-Term Management Plan 2025 28 (Excerpts from the Medium-Term Management Plan released on May 12, 2023) The current plan will be a three-year challenge of changing towards growth and Keywords Challenge Change Grow leaping further into the future Transform and Sophisticate Business P
Slide 30: Positioning of Medium-Term Management Plan 2025
Positioning of Medium-Term Management Plan 2025 29 (Excerpts from the Medium-Term Management Plan released on May 12, 2023) ⚫ We position this Plan as a period of aggressive investment of managerial resources into both business and management infrastructure, in order to make great strides towards th
Slide 31: Consolidated B/S (Assets)
Consolidated B/S (Assets) 30 YoY YoY % （¥bn） End−Mar. End−Mar. End−Mar. End−Mar. End−Sep. Change Change 2021 2022 2023 2024 (1) 2024 (2) (3) = (2)−(1) (3) / (1) Current assets 2,085.1 2,166.7 2,279.7 2,378.1 2,415.1 ＋37.0 ＋2% Cash and deposits 21.1 25.3 34.0 56.7 47.9 –8.8 –16% Investment in lease 1
Slide 32: Consolidated B/S (Liabilities and Equity)
Consolidated B/S (Liabilities and Equity) 31 YoY YoY % （¥bn） End−Mar. End−Mar. End−Mar. End−Mar. End−Sep. Change Change 2021 2022 2023 2024 (1) 2024 (2) (3) = (2)−(1) (3) / (1) Current liabilities 1,492.9 1,548.4 1,573.5 1,715.2 1,812.4 ＋97.2 ＋6% Short−term borrowings 317.8 380.3 418.4 524.1 589.8 ＋
Slide 33: Consolidated P/L
Consolidated P/L 32 YoY YoY % （¥bn） FY20 FY21 FY22 FY23 FY24 Change Change H1 H1 H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Revenues 228.7 260.0 228.8 271.8 298.4 ＋26.6 ＋10% Gross profit before funding costs 28.4 29.7 36.1 42.6 53.8 ＋11.2 ＋26% Funding costs 4.2 3.7 4.6 8.0 11.8 ＋3.8 ＋47% Gross profit 24
Slide 34: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income 33 YoY YoY % （¥bn） FY20 FY21 FY22 FY23 FY24 Change Change H1 H1 H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Net income 13.3 9.9 16.2 18.8 27.3 ＋8.5 ＋45% Unrealized gain on –2.4 0.1 5.2 3.9 –2.0 –5.9 - available−for−sale securities Deferred gain/loss on deri
Slide 35: Gross Profit before Funding Costs by Business Area
Gross Profit before Funding Costs by Business Area 34 YoY YoY % （¥bn） FY20 FY21 FY22 FY23 FY24 Change Change H1 H1 H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Revenues 228.7 260.0 228.8 271.8 298.4 ＋26.6 ＋10% Leasing and installment sales 221.7 251.4 216.5 256.7 274.6 ＋17.9 ＋7% Finance 7.2 8.7 12.4 15.9
Slide 36: Newly Executed Contract Volume by Business Area
Newly Executed Contract Volume by Business Area 35 Leasing and Installment Sales Segment YoY YoY % （¥bn） FY22 FY23 FY24 Change Change H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Information and communications 49.0 40.4 78.2 ＋37.8 ＋93% Real estate 46.1 141.0 260.2 ＋119.2 ＋85% Industry and factory 29.4 53.
Slide 37: Contact
Contact Mizuho Leasing Company, Limited Corporate Communications Department Tel: +81-3-5253-6540 This document contains forecasts and other forward−looking statements that are based on information available at the time of preparation of this document and subject to certain risks and uncertainties, a
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