Aircastle — H1 FY2019 Earnings Presentation
34 slides from Aircastle's earnings presentation, Nov 14, 2019
Slide 1: FY2019 First-Half Financial Results Presentation Materials
FY2019 First-Half Financial Results Presentation Materials November 14, 2019 (Japan time) Mizuho Leasing Co., Ltd.
Slide 2: Table of Contents
Table of Contents Financial Results and Business Performance Overview Status of Sixth Mid-term Management Plan Appendix ・・・ P.3 ・・・ P.12 ・・・ P.24 2
Slide 3: Financial Results and Business Performance Overview
Financial Results and Business Performance Overview
Slide 4: Summary of First-Half Results for FY2019
Recorded gross profit before write-offs and funding costs of ¥28.9 billion and net income attributable to owners of the parent of ¥8.9 billion, a new record-high on a semiannual basis. －Each income indicator progressed favorably against full-year forecasts. Based on the recent financial results and
Slide 5: Overview of Financial Results
(¥bn) FY17 1H FY18 1H FY19 1H Change % Change Revenues 178.4 179.8 254.9 +75.1 +42% Gross profit before write-offs and funding costs 22.2 25.0 28.9 +3.9 +16% Funding costs 3.4 4.1 5.0 +0.9 +22% Gross profit 18.8 20.9 24.0 +3.1 +15% Credit costs -0.4 -0.4 -0.5 -0.1 - Operating income 9.5 11.1 12.6 +1
Slide 6: Business Performance Overview
For leasing and installment sales, execution volume increased in areas such as industrial and factory, information and communications, and transport For financing, the primary factor is a decrease in short-term commercial distribution finance (¥bn) FY17 1H FY18 1H FY19 1H Change % Change Contract ex
Slide 7: Contract Execution Volume / Leasing and Installment Sales
(¥bn) FY17 1H FY18 1H FY19 1H Change % Change Industrial and factory 37.9 60.6 87.3 +26.7 +44% Information and communications 42.3 45.0 65.2 +20.2 +45% Transport 26.7 28.7 38.5 +9.8 +34% Construction 23.0 19.5 17.8 -1.7 -8% Medical 8.3 7.7 10.4 +2.7 +35% Commerce and services 14.4 19.8 14.6 -5.2 -26
Slide 8: Contract Execution Volume / Financing
Contract Execution Volume / Financing Contract execution volume (¥bn) FY17 1H FY18 1H FY19 1H Change % Change Commercial Distribution Finance / Loan, etc. 410.7 446.3 254.9 -191.4 -43% Aircraft 7.8 6.4 8.0 +1.6 +24% Real Estate 12.7 60.0 26.2 -33.8 -56% Vessel 4.8 9.8 10.9 +1.1 +11% Total 436.1 522.
Slide 9: Balance (Global / Aircraft / Real Estate)
Balance (Global / Aircraft / Real Estate) Global Aircraft Real estate (¥bn) Balance steadily increased from accumulating cross-border projects Balances of land leasing / building leasing and financing, etc., increased although balance of bridge schemes decreased following the sale of properties to R
Slide 10: Funding
Proactively utilized market procurement including issuing of new corporate bonds (3-year bond, ¥20 billion) The increase in funding costs is due to higher foreign currency borrowings following an increase in foreign currency assets Funding Interest-bearing debt (¥bn) Funding costs (ratio) (¥bn) FY17
Slide 11: Earnings Forecasts and Dividends
Net income attributable to owners of the parent steadily progressed against FY2019 annual plans. Based on the recent financial results and celebrating the 50th anniversary of establishment in December 2019, implement a commemorative dividend of ¥2 as a token of appreciation to shareholders. －Plan to
Slide 12: Status of Sixth Mid-term Management Plan
Status of Sixth Mid-term Management Plan
Slide 13: Overview of Sixth Mid-term Management Plan (FY 2019-2023)
Overseas network Wide range of lease financing products from general trading company One of the largest client bases in Japan and overseas Strong ties between Group companies including banks, trust banks, and securities firms Overview of Sixth Mid-term Management Plan (FY 2019-2023) Service business
Slide 14: Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Plan
Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan (FY 2019-2023) Net income attributable to owners of the parent Balance in the global area Compared with that at the end of March 2019 Dividend payout ratio ¥30 billion Triple compared with that at the end of March 2019
Slide 15: Promote Business Strategies Listed in the Sixth Mid-term Management Plan
Promote Business Strategies Listed in the Sixth Mid-term Management Plan Overview of Actions on Sixth Mid-term Management Plan for First-Half of FY2019 Provide solutions that contribute to clients’ issue solving and business development; solid results are shown in each of the focus areas Promote coo
Slide 16: Acquisition of Shares of Aircastle
Acquisition of Shares of Aircastle The company acquires 25% of the Aircastle shares (Acquisition price: approximately JPY 69 billion) Promote improvement of presence in the global market by making Aircastle a platform and facilitating further expansion of the business foundation Name Aircastle Limit
Slide 17: Overview of the Acquisition
50％ of SPC1 (25％ of a whole) Overview of the acquisition Acquisition of Shares of Aircastle 50％ (Subject to acquisition this time) SPC 2 Parent (SPC 1) Marubeni Aircastle (Listed on NYSE → delisted after acquisition） Mizuho Leasing 50％ (increased from 28.8％ already owned) 50％ of SPC1 (25％ of a whole
Slide 18: New Business Strategy
New Business Strategy Joint Business Operation Commercial Distribution Support Service Business Jointly with Paramount Bed Co., Ltd., created rental service of “Nemuri SCAN”, a monitoring support device developed for care facilities Aim to advance into cooperative business operation with customers a
Slide 19: Environment and Energy: Strategies and Examples
Environment and Energy: Strategies and Examples Improve power system, promote business in response to the trends of local production for local consumption of electricity Engage in initiatives to invest in energy infrastructure Provision of energy-saving solutions Participate in renewable energy oper
Slide 20: Medical and Healthcare: Strategies and Examples
Medial and Healthcare: Strategies and Examples Collaborate with medical equipment manufacturers, such as Meter-rate Charging Service, etc. Respond to investment needs for medical/care services utilizing IoT, etc. Participate in community development with clients to revitalize local economies. Take a
Slide 21: Global: Strategies and Examples
Global: Strategies and Examples Collaboration with Marubeni Corporation in overseas lease finance business (M&A ・Establishing new companies・Utilizing existing bases, etc.) Increase business with non-Japanese clients Meet needs of Japanese clients for capital investment and rolling out businesses ove
Slide 22: Aircraft: Strategies and Examples
Aircraft: Strategies and Examples Drive forward aircraft operating lease business Accumulate aircraft-backed collateralized loans Set up and expand sales of JOLCO Enter business related to engines, parts, and other aircraft peripherals Meet increasingly diversified investment needs of Mizuho Leasing
Slide 23: Real estate: Strategies and Examples
Real estate: Strategies and Examples Reinforce real estate leasing in areas with high societal needs Enhance bridge functions for REITs in Japan Effect excellent joint investment with a major developer Invest in overseas real estate funds Carefully select good properties that show potential for high
Slide 24: Appendix
Appendix
Slide 25: Company Profile
Company Profile Company Name Mizuho Leasing Company, Limited Address 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Representative Hiroshi Motoyama, President and CEO Establishment December 1, 1969 Listing Tokyo Stock Exchange, 1st Section (Code: 8425) Capital Stock 26,088 million yen (Outstanding share
Slide 26: Stock Status
Number of shares issued 49,004,000 Number of shareholders 33,306 Distribution of shareholders (shareholding ratio) Major Shareholders Stock Status (As of September 31, 2019) Shareholders Shares Held (1,000 shares) Holding Ratio Mizuho Bank, Ltd. 11,283 23.03% The Dai-ichi Life Insurance Company, Lim
Slide 27: Corporate Governance Structure
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: 11 directors (incl. 6 outside directors), 4 auditors (incl. 4 outside auditors) Appoint 4 outside directors and 3 outs
Slide 28: Consolidated Balance Sheet (Assets)
(\bn) End of Mar 2016 End of Mar 2017 End of Mar 2018 End of Mar 2019 (A) End of Sep 2019 (B) Change (B) – (A) % Change (B) / (A) Current assets 1,552.9 1,564.7 1,602.4 1,866.6 1,870.4 +3.8 +0.2% Cash and deposits 49.4 42.3 30.3 25.9 14.4 -11.5 -44.5% Investment in lease 842.0 809.3 823.4 930.3 1,00
Slide 29: Consolidated Balance Sheet (Liabilities)
The Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28, February 16, 2018) have been adopted since fiscal 2018 and retrospectively applied to figures for the end of March 2016 through the end of March 2018. (\bn) End of Mar 2016 End of Mar 2017 End of Mar 2018
Slide 30: Consolidated Statement of Income
(\bn) FY15 1H FY16 1H FY17 1H FY18 1H (A) FY19 1H (B) Change (B) – (A) % Change (B) / (A) Revenues 166.2 181.4 178.4 179.8 254.9 +75.1 +41.8% Gross profit before write-offs and funding costs 21.4 21.8 22.2 25.0 28.9 +3.9 +15.9% Funding costs 3.2 2.6 3.4 4.1 5.0 +0.9 +22.2% Gross profit 18.2 19.2 18.
Slide 31: Consolidated Statement of Comprehensive Income
(\bn) FY15 1H FY16 1H FY17 1H FY18 1H (A) FY19 1H (B) Change (B) – (A) % Change (B) / (A) Net income 6.2 7.7 6.9 8.9 9.1 +0.2 +1.6% Unrealized gain on available-for-sale securities 1.8 -1.4 1.6 -0.5 1.6 +2.1 - Deferred gain/loss on derivatives under hedge accounting -0.1 0.0 -0.1 0.0 0.0 +0.0 +32.5%
Slide 32: Revenues and Gross Profit by Segment
(\bn) FY15 1H FY16 1H FY17 1H FY18 1H (A) FY19 1H (B) Change (B) – (A) % Change (B) / (A) Revenues 166.2 181.4 178.4 179.8 254.9 +75.1 +41.8% Leasing and installment sales 161.1 175.7 171.9 171.1 246.0 +74.9 +43.8% Finance 4.8 5.3 6.3 7.9 8.4 +0.5 +7.2% Other 0.8 0.7 0.6 1.2 1.1 -0.1 -9.4% Eliminati
Slide 33: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Certain statements in this document are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “expects,” “intends,” “plans,”
Slide 34: Inquiries
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 time of preparation of this document