Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — H1 FY2021 Earnings Presentation
42 slides from Mizuho Leasing's earnings presentation, Nov 16, 2021
Slide 1: FY2021 First-Half Financial Results Presentation Materials
FY2021 First-Half Financial Results Presentation Materials November 16, 2021 Mizuho Leasing Co., Ltd.
Slide 2: Table of Contents
Table of Contents 1. Financial Results and Business ・・・ P.2 Performance Overview 2. Earnings Forecasts and Dividends ・・・ P.10 3. Status of Sixth Mid-term Management ・・・ P.12 Plan (A) Overview of Sixth Mid-term Management Plan (B) Cooperation with Alliance Partners (C) New Business Strategies and Foc
Slide 3: 1. Financial Results and Business Performance Overview
1. Financial Results and Business Performance Overview 2
Slide 4: Summary of Second-Quarter Results for FY2021
Summary of Second-Quarter Results for FY2021 Operating income increased amid the harsh environment under the COVID-19 pandemic, supported by the accumulation of highly profitable financing assets and a reversal of credit costs Ordinary income declined due to the effect of recording equity in los
Slide 5: Factors behind change in net income attributable to owners of the parent
Factors behind change in net income attributable to owners of the parent ¥bn 1.8 0.8 (D) 2.3 0.4 (C) (B) (A) -0.6 -0.5 (E) 13.0 -0.4 Mainly due to foreign currency factors -4.7 (F) 1.4 9.5 Operating income +¥2.1 billion -4.0 Ordinary income -0.8 billion FY20 1H Income from Gain on large Income from
Slide 6: Overview of Financial Results
Overview of Financial Results FY19 FY20 FY21 % (¥bn) Change 1H 1H 1H Change Revenues 254.9 228.7 260.0 +31.3 +14% Gross profit before write- offs and funding costs 28.9 28.4 29.7 +1.3 +5% Funding costs (5.0) (4.2) (3.7) -0.5 -11% Gross profit 24.0 24.2 26.0 +1.8 +7% Credit costs -0.5 0.6 -0.2 -0.8 -
Slide 7: Business Performance Overview
Business Performance Overview Contract execution volume of leasing and installment sales declined mainly due to delays in capital investment of customers Contract execution volume for FY21 1H declined partly due to a rebound from FY19 1H and FY20 1H where new contracts were accumulated at a high
Slide 8: Contract Execution Volume / Leasing and Installment Sales
Contract Execution Volume / Leasing and Installment Sales Contract execution volume by equipment type Although the movement of contract execution volume in FY21 1Q got off to a slow start, it has gradually improved in FY21 2Q (+¥30.2 billion) (Breakdown of 21/1Q and 2Q) FY19 FY20 FY21 % (¥bn) Chan
Slide 9: Contract Execution Volume / Financing
Contract Execution Volume / Financing Contract execution volume FY19 FY20 FY21 % (¥bn) Change 1H 1H 1H Change Commercial distribution finance / 254.9 303.2 294.0 -9.2 -3% loan, etc. Increased due to large projects Real estate 26.2 26.8 79.4 +52.6 +196% executed Vessel 10.9 6.9 2.5 -4.4 -64% Aircraft
Slide 10: Funding
Funding Funding costs and funding costs ratio both decreased due to factors such as lower foreign currency funding interest rates Interest-bearing debt Funding costs (ratio) FY19 FY20 FY21 (¥bn) Borrowings CP Bonds/securitization (¥bn) 2,283.9 1H 1H 1H 2,400.0 2,255.4 Funding costs 5.0 4.2 3.7 2,0
Slide 11: 2. Earnings Forecasts and Dividends
2. Earnings Forecasts and Dividends 10
Slide 12: Earnings Forecasts and Dividends
Earnings Forecasts and Dividends We have not changed our full-year earnings forecasts for FY2021, and aim to achieve them by regaining earnings in the second half ‒ Going forward, we will continue to closely watch the impact of the global spread of COVID-19 Interim dividend of ¥55/share, an incr
Slide 13: 3. Status of Sixth Mid-term Management Plan
3. Status of Sixth Mid-term Management Plan 12
Slide 14: 3-(A) Overview of Sixth Mid-term Management Plan
3-(A) Overview of Sixth Mid-term Management Plan 13
Slide 15: Overview of Sixth Mid-term Management Plan (FY 2019-2023)
Overview of Sixth Mid-term Management Plan (FY 2019-2023) Providing solutions that contribute to financial and Cooperation with Alliance Partners business strategies for all our clients （※1） Enhancing lease financing business by expanding Mizuho Financial Group client base One of the largest clien
Slide 16: Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan
Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan (FY 2019-2023) Dividend Net income attributable ¥30.0 Balance in Triple payout Aim for 25% to owners of the parent billion the global area compared with that at the or more end of March 2019 ratio (¥bn) 30.0 Triple 25.0
Slide 17: 3-(B) Cooperation with Alliance Partners
3-(B) Cooperation with Alliance Partners 16
Slide 18: Cooperation with Alliance Partners: Mizuho Financial Group
Cooperation with Alliance Partners: Mizuho Financial Group Cooperation with Mizuho Financial Group Mojiwonyuuryoku In FY2021 1H, future revenue* through cooperation almost Future revenue* through Measures to be cooperation doubled y-o-y promoted in FY21 ➡ Cooperation expanded in areas such as re
Slide 19: Cooperation with Alliance Partners: the Marubeni Group
Cooperation with Alliance Partners: the Marubeni Group Cooperation with the Marubeni Group Collaboration with the Marubeni Group We promote cooperation with the Marubeni Group Mizuho Marubeni Leasing mainly in the global area - Deployed aggressive overseas business investment Global business inves
Slide 20: Cooperation with Alliance Partners: Ricoh and Ricoh Leasing
Cooperation with Alliance Partners: Ricoh and Ricoh Leasing Cooperation with Ricoh and Ricoh Collaboration in new business Leasing 【Before collaboration】 Customers Further promote new businesses such as service A B C D ・・・・・・ × business and subscription business Lack of infrastructure and expertis
Slide 21: 3-(C) New Business Strategies and Focus Areas
3-(C) New Business Strategies and Focus Areas 20
Slide 22: Business Strategy Overview
Business Strategy Overview We have classified our business strategies into four categories from the standpoints of expansion of business areas (vertical axis) and market growth potential and initiatives to address social issues (horizontal axis). Our policy will be to maintain zone A as the founda
Slide 23: Status of Focus Area: Real Estate
Status of Focus Area: Real Estate Balance increased mainly for long-term (financing etc., land leasing / building leasing) assets, and the total balance rose by approximately ¥43.5 billion from the end of the previous fiscal year - Handled wide range of asset type such as logistics facilities and
Slide 24: Status of Focus Area: Real Estate (Topics)
Status of Focus Area: Real Estate (Topics) Supporting East Japan Railway Company Group’s real estate asset management business Financial advisor Mizuho Securities Co., Ltd. Support from the entire Mizuho Financial Group to contribute to the Mizuho Trust & Banking Co., Ltd. Financing arrangement ma
Slide 25: Status of Focus Area: Environment and Energy
Status of Focus Area: Environment and Energy Offered a wide range of solutions for a myriad of power source types in renewable energy area and balances increased Power source types: Solar power, wind power, hydroelectric power, biomass, etc. Solutions: Business management, equity investment, m
Slide 26: Status of Focus Area: Global
Status of Focus Area: Global Although we were affected by COVID-19, mainly in our mainstay Asia region, we continued our efforts to support our customers’ overseas businesses New business initiatives by utilizing our Singapore subsidiary - Capture a wide range of needs in the Asia-Oceania region
Slide 27: Status of Focus Area: Medical and Healthcare, Aircraft (A)
Status of Focus Area Medical and Healthcare Aircraft (A) (other than Aircastle) Shift our attention to initiatives that prioritize Change our stance from restraining new initiatives to profitability, with medical institutions cutting back on resuming initiatives by selecting deals, based on the
Slide 28: Aircraft (B) (Aircastle)
Aircraft (B) (Aircastle) (Source: Data published by Aircastle on October 13, 2021) Demand for passenger transport has been gradually recovering Aircastle Profile (As of end of August 2021) (refer to Aircraft (C)) Marubeni: 75%, Aircastle is also working to acquire new aircraft and its aircraft I
Slide 29: Aircraft (C) (General Situation of the Airline Market)
Aircraft (C) (General Situation of the Airline Market) Demand for passenger transport has been gradually recovering, and recovery of demand for domestic flights is ahead of that for international flights As countries have eased their travel restrictions, airline passenger demand is expected to r
Slide 30: 3-(D) Identification of Issues and Realization of Solutions
3-(D) “Identification of Issues” and “Realization of Solutions” Based on Management Philosophy 29
Slide 31: Identification of Issues and Realization of Solutions Based on Management Philosophy
“Identification of Issues” and “Realization of Solutions” Based on Management Philosophy With the management environment changing drastically, in order to concisely show the ideal vision of Mizuho Leasing, we revised our existing management philosophy in May 2021 We identified material issues (m
Slide 32: Solving Issues through Business Activities
Solving Issues through Business Activities Commence Mizuho SDGs Leases Initiatives Lease fees payment 0.1% of the property value is included Donation payment in the lease fees as a donation and (0.2% of the property value) paid in equal installments In collaboration with Mizuho Research & Technolo
Slide 33: Appendix
Appendix 32
Slide 34: Company Profile
Company Profile Company Name Mizuho Leasing Company, Limited Address 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Representative Shusaku Tsuhara, President and CEO Establishment December 1, 1969 Listing Tokyo Stock Exchange, 1st Section (Code: 8425) Capital Stock 26,088 million yen (Outstanding shares
Slide 35: Stock Status (As of September 30, 2021)
Stock Status (As of September 30, 2021) Number of shares issued 49,004,000 Major Shareholders Number of shareholders 41,286 Shares Holding Shareholders Held Distribution of shareholders (shareholding ratio) Ratio (1,000 shares) Individuals Mizuho Bank, Ltd. 11,283 23.03% and others 9.7% The
Slide 36: Internal Control System
Internal Control System Mizuho Leasing has established a system to ensure proper execution of business operations, and is operating this system in an effective and appropriate manner. Management structure: 12 directors (incl. 6 outside directors), 4 auditors (incl. 3 outside auditors, 1 part-tim
Slide 37: Consolidated Balance Sheet (Assets)
Consolidated Balance Sheet (Assets) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change (¥bn) 2018 2019 2020 2021 (A) 2021 (B) (B) – (A) (B) / (A) Current assets 1,602.4 1,866.6 1,947.3 2,085.1 2,070.8 -14.3 -0.7% Cash and deposits 30.3 25.9 22.8 21.1 18.8 -2.3 -10.7% Investment i
Slide 38: Consolidated Balance Sheet (Liabilities and Equity)
Consolidated Balance Sheet (Liabilities and Equity) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change (¥bn) 2018 2019 2020 2021 (A) 2021 (B) (B) – (A) (B) / (A) Current liabilities 1,082.1 1,294.2 1,314.1 1,492.9 1,494.1 +1.2 +0.1% Short-term borrowings 270.7 302.2 256.7 317.8 3
Slide 39: Consolidated Statement of Income
Consolidated Statement of Income % Change FY17 FY18 FY19 FY20 FY21 Change (¥bn) (B) – (A) / 1H 1H 1H 1H (A) 1H (B) (B) – (A) (A) Revenues 178.4 179.8 254.9 228.7 260.0 +31.3 +13.7% Gross profit before write-offs and 22.2 25.0 28.9 28.4 29.7 +1.3 +4.7% funding costs Funding costs 3.4 4.1 5.0 4.2 3.7
Slide 40: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income FY17 FY18 FY19 FY20 FY21 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Net income 6.9 8.9 9.1 13.3 9.9 -3.4 -25.9% Unrealized gain on available-for- 1.6 -0.5 1.6 -2.4 0.1 +2.5 - sale securities Deferred gain/loss on derivatives -0.1 0
Slide 41: Gross Profit Before Write-offs and Funding Costs by Segment
Gross Profit Before Write-offs and Funding Costs by Segment FY17 FY18 FY19 FY20 FY21 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Revenues 178.4 179.8 254.9 228.7 260.0 +31.2 + 13.7% Leasing and installment sales 171.9 171.1 246.0 221.7 251.4 +29.7 + 13.4% Finance 6.3 7.9 8.4 7.2
Slide 42: Inquiries
Connect needs to create the future Inquiries Mizuho Leasing Company, Limited Corporate Planning Department Corporate Communication Division Tel: +81-3-5253-6540 Fax: +81-3-5253-6539 This document contains forecasts and other forward-looking statements that are based on information available at the t
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