Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2015 (FY2014)
Financial Results Briefing for the Fiscal Year Ended March 31, 2015 (FY2014) April 27, 2015 NEC Capital Solutions Limited
Slide 2: NEC Capital Solutions Group Vision
NEC Capital Solutions Group Vision To be a global solution service company that aims to enhance social value with customers
Slide 3: Highlights of Consolidated Financial Statements
1. Financial Results for Fiscal Year Ended March 31, 2015 1) Highlights of Consolidated Financial Statements Business Environment ・ Although the decline in Leasing contracts following the increase in the consumption tax rate is gradually easing, the trend is lower Y/Y. ・Conditions for procuring fund
Slide 4: Business Environment
1. Financial Results for Fiscal Year Ended March 31, 2015 2） Business Environment Total Leasing Contracts:Although there was a large negative effect Y/Y in 1Q from the increase in the consumption tax rate, cumulative to March across the leasing industry as a whole the decline in transactions had nar
Slide 5: Consolidated Financial Summary
1. Financial Results for Fiscal Year Ended March 31, 2015 3） Consolidated Financial Summary ・ Revenues ：Revenues decreased by 6.3% Y/Y due to large-scale sales of operational investment securities last year. ・ Ordinary Income ：Fall by 71.3% Y/Y due to such things as the increase in income associated
Slide 6: (For reference) Consolidated Financial Summary
1. Financial Results for Fiscal Year Ended March 31, 2015 (For reference) Consolidated Financial Summary (Excluding minority interests in net income) • Ordinary income on a NET basis (excluding minority interests in net income) decreased by 18.1% Y/Y, or JPY 6.3bn. • Remained stable Y/Y if the incre
Slide 7: Consolidated Revenues by Business Segment
1. Financial Results for Fiscal Year Ended March 31, 2015 4） Consolidated Revenues by Business Segment ▌Revenues by Business Segment Leasing/Installment Sales Business (Unit: JPY bn) ・ Revenues fell by 6.6% Y/Y. Lower gross profits FY2013 FY2014 on the withdrawal from the small leases Y/Y Change bus
Slide 8: Contracts Executed by Business Segment
1. Financial Results for Fiscal Year Ended March 31, 2015 5） Contracts Executed by Business Segment (Consolidated) ▌Contracts Executed by Business Segment ▌New Transactions by Business Segment (Unit: JPY bn) (Unit: JPY bn) FY2013 FY2014 FY2013 FY2014 Y/Y Change Y/Y Change Leasing/ Installment Leasin
Slide 9: Leasing/Installment Sales Business
1. Financial Results for Fiscal Year Ended March 31, 2015 6） Leasing/Installment Sales Business (Consolidated) ▌Contracts Executed by Customers’ Sector ▌New Transactions by Customers’ Sector (Unit: JPY bn) (Unit: JPY bn) FY2013 FY2014 FY2013 FY2014 Y/Y Change Y/Y Change Public Sector: Gov ernment &
Slide 10: Financial Business
1. Financial Results for Fiscal Year Ended March 31, 2015 7） Financial Business (Consolidated, excluding bulk factoring) ▌Contracts Executed by Form of Contract ▌Contracts Executed by Customer s’ Sector (Unit: JPY bn) (Unit: JPY bn) FY2013 FY2014 Y/Y Change FY2013 FY2014 Public Sector: Y/Y Change Go
Slide 11: RISA Business (Operating Income)
1. Financial Results for Fiscal Year Ended March 31, 2015 8） RISA Business (Operating Income) (Unit: JPY bn) FY2013 FY2014 On a standalone basis the business Y/Y Change achieved operating income , but Asset Revenues 22.7 3.9 -82.8% taking into account adjustment of business Gross profit 13.5 2.5 -81
Slide 12: Consolidated Operating Asset Balances
1. Financial Results for Fiscal Year Ended March 31, 2015 9） Consolidated Operating Asset Balances (Consolidated, excluding small-scale leasing) 800 (Unit: JPY bn) Operating Asset Balance ・Excluding small-scale leasing, 707.9 Leasing/Installment Sales Business grew by 700 42.5 7.9% Y/Y or JPY 32.7bn
Slide 13: Procurement Funds (Consolidated)
1. Financial Results for Fiscal Year Ended March 31, 2015 資金原価率（%） 10） Procurement Funds (Consolidated) ＝資金原価÷有利子負債平残 Funding cost ratio (%)= Cost of ▐ Composition of Interest-bearing Debt ▌Funding Cost Ratio funding / Average Balance of (Unit: JPY bn) FY2013 FY2014 1.1% Interest-bearing debt Compos
Slide 14: Credit Costs (Consolidated)
1. Financial Results for Fiscal Year Ended March 31, 2015 11） Credit Costs (Consolidated) ・ Credit costs were deceased JPY 0.5bn Y/Y (of which, general expenses increased by JPY 1.0bn). ・ Specific reserve expenses decreased by JPY 1.5bn, on items such as reduced precautionary reserve balances and re
Slide 15: Business Plan for March 2016 Term (FY2015)
2. Business Plan for March 2016 Term(FY2015) 1） Consolidated Earnings Forecasts ▐ Consolidated Earning Forecasts (Unit: JPY bn) Actual Forecast FY2014 FY2015 Y/Y Change Revenues 213.9 190.0 88.8% Ordinary Income 4.7 5.5 117.0% Net Income 2.8 3.5 125.0% Net Income per Share (JPY) 130.81 162.54 - ▐ Di
Slide 16: Status of Progress in the Medium-Term Plan 2014
Status of Progress in the Medium-Term Plan 2014 Page 15 © NEC Capital Solutions Limited 2015
Slide 17: Review of FY2014 (Profit Plan)
(1) Review of FY2014 (Profit Plan) ▌Achieved original profit plans ▌Operating asset growth reduced equity ratio (Unit: JPY bn) (Unit: JPY bn) FY2014 FY2014 Gap from Item Original Target Result Targets Ordinary Profit 4.7 + 0.7 4.0 (Consol.) Net Profit 2.8 + 0.8 2.0 (Consol.) ROA 0.6% 0.6% ± 0.0% Equ
Slide 18: Progress in Business Strategy Initiatives
(2) Progress in Business Strategy Initiatives ▌Objective of improving social value in cooperation with NEC ・Growth incorporating aim in NEC’s Medium-Term Plan to transform into a “Social Value Innovator” ・Strengthen sales of solutions to NEC domestic and overseas customers using NEC Capital’s know-h
Slide 19: Progress in Business Strategy Initiatives
(2) Progress in Business Strategy Initiatives ▌Driving development and commercialization of new needs from a CSV perspective · Promoting PFI business to deal with aging social infrastructure · Strengthen ICT support businesses by providing LCM (*1) and SAM (*2) services for ICT assets · Expand suppo
Slide 20: Progress in Strategies to Strengthen the Business Base
(3) Progress in Strategies to Strengthen the Business Base ▌Strategies for improving profitability ・Upgrading administrative accounting (building management awareness in middle management) ・Bolster administrative operations, IT (strengthen administration quality) ・Personnel strategy to promote busin
Slide 21: Profit Forecast
(4) Profit Forecast for FY2016 ▌Expansion of the operating top line was connected with the turnaround in the balance of operating assets, as gross profits stopped falling in Leasing / Installment Sales Business and in Financial Business. For FY2015, we would expect gross profit growth even without t
Slide 22: Profit Forecast for FY2016
(5) Profit Forecast for FY2016 ▐ We aim to achieve profit growth levels that are consistent with our original plans if temporary factors (reversal of credit costs, profit on large-scale sales of operational investment securities, etc.) are excluded. Original Plan (Unit: JPY bn) Current Plan (Unit: J
Slide 23: Disclaimer on presentation materials
The presentation materials are solely for the purpose of providing corporate information of NEC Capital Solutions Limited and not for soliciting purchase, sale, or investment in securities issued by the Company. We ask for the discretion of investors in making investment decisions. The presentation
Slide 24: Page 23
Page 23 © NEC Capital Solutions Limited 2015
Slide 25: NEC Capital Solutions Group Vision (Japanese)
ＮＥＣキャピタルソリューション グループビジョン お客様と共に、社会価値向上を目指して、 グローバルに挑戦するサービス・カンパニー Page 24 © NEC Capital Solutions Limited 2015