Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — FY2016 Earnings Presentation
24 slides from Fuyo General Lease's earnings presentation, May 11, 2016
Slide 1: Financial Results briefing for FY2016
Financial Results briefing for FY2016 IR Presentation May 11, 2016 FUYO GENERAL LEASE CO., LTD. 1
Slide 2: Agenda
Agenda 1. Overview of consolidated operating results 2. Overview of business activities 3. Progress of “Value Creation 300” Medium-term Management Plan 4. Operating results forecast and dividend policy 5. Appendix Earnings forecasts and other forward-looking statements provided in this material are
Slide 3: FY2016 results and progress
1. Overview of consolidated operating results FY2016 results and progress (¥100 million) FY2015 FY2016 YoY YoY Achievement change change Forecast rate results results (amount) (%) Total revenues 4,723 4,937 +214 +4.5% 5,000 98.7% Profit before interest 552 580 +28 +5.1% expenses (*1) Gross profit 48
Slide 4: Changes in total revenues, ordinary income, and profit attributable to owners of parent
1. Overview of consolidated operating results Changes in total revenues, ordinary income, and profit attributable to owners of parent Total revenues Total revenues up for two consecutive years on sustained growth of lease operating assets Total revenues showing a sustained growth trend, increasing i
Slide 5: Factors affecting ordinary income
1. Overview of consolidated operating results Factors affecting ordinary income ・Profit before interest expenses up ¥2.8 billion. Cost of funds up ¥0.3 billion accompanying an increase in the funding balance due to sustained growth of assets ・Increase in retirement benefit expenses due to the impact
Slide 6: Profit before interest expenses
1. Overview of consolidated operating results Profit before interest expenses In the Leases segment, an increase in assets and gross 【Leases segment】 Asset balance and gross margin on assets margin improvement contributed to a profit increase. In the (¥100 million) (%) Loans and Other segment, a sub
Slide 7: Changes in funding
1. Overview of consolidated operating results Changes in funding Despite an increase in the total funding amount accompanying the increase in operating assets, interest expenses nearly flat because of lower funding costs (¥100 million) Interest expenses, funding (*1) (¥100 million) Funding balance 1
Slide 8: Changes in net assets and equity ratio; Changes in costs
1. Overview of consolidated operating results Changes in net assets and Changes in costs equity ratio ・Credit-related costs maintained at a favorable level for five Equity ratio maintained at the 10% level amid consecutive years growth in operating assets ・Excluding retirement benefit expenses, pers
Slide 9: Newly executed contract volume and Operating assets
2. Overview of business activities Newly executed contract volume Operating assets A 5.8% increase in newly executed contract Medium-term plan target (¥1,850.0 volume, with a strong 14.3% increase in the billion) achieved a year ahead of Leases segment schedule Newly executed contract volume Operati
Slide 10: Changes in newly executed contract volume; Newly executed lease contracts
2. Overview of business activities Changes in newly executed Newly executed lease contracts contract volume volume (by type of equipment) Volume consistently above industry average Increase of 14.3% year on year, driven by (Japan Leasing Association data) regardless buildings, etc. (real estate leas
Slide 11: Value Creation 300 Medium-term Management Plan: Key Strategy Overview
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan “Value Creation 300” Medium-term Management Plan Key Strategy Overview Solutions and Value Creation Business Strategies 1 Strengthen profit-generating potential through problem solving and creation of added value Stre
Slide 12: Value Creation 300 Medium-term Management Plan: Targets and progress
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan “Value Creation 300” Medium-term Management Plan Targets and progress (¥100 million) Revised Targets revised upward in response target 400 to favorable progress 20,000 20,000 Initial +1,500 target Operating assets 18,
Slide 13: Aircraft business
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Aircraft business Arranged 13 aircraft in FY2016; (7 self-owned Aircraft leases arranged in FY2016 and 6 JOLCO), increasing the self-owned (self-owned) fleet to 15. The total number of aircraft in ・ Leased two B737-80
Slide 14: Financing business
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Financing business Increasing operating assets while Financing business (Loans and Other maintaining a diversified business portfolio segment) achieved target (¥440.0 billion) Breakdown at the (Other) ahead of schedul
Slide 15: Overseas business; Renewable energy
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Overseas business Renewable energy In light of steadily increasing operating Target for development of mega-solar plants assets, target increased by ¥10.0 billion as an own business nearly achieved the to ¥90.0 billio
Slide 16: Real estate leasing
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Real estate leasing Growth from commercial facilities and hotel TOPICS buildings drove initial target (¥42.0 billion) achievement of approximately 200%. Medium- In real estate leasing, April marked the opening of a te
Slide 17: Retail business; Accounting services business
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Retail business Accounting services business Lease contract volume in the mainstay office Joint development together with SAP of the equipment sector rose 12%. Lower volume in the FLOW Cube+ lease accounting system, w
Slide 18: Summary of seven strategic business areas
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Summary of seven strategic business areas FY2017 targets revised upward in three business areas showing particularly good progress against targets (financing business, overseas business, real estate leasing) March 201
Slide 19: FY2017 consolidated operating results forecast
4. Operating results forecast and dividend policy FY2017 consolidated operating results forecast (¥100 million) FY2017 FY2016 forecast Total revenues 4,937 5,100 Operating income 244 290 Ordinary income 292 320 Profit attributable to owners of parent 175 195 Net income per share ¥579.17 ¥646.31 19
Slide 20: FY2017 dividend policy
4. Operating results forecast and dividend policy FY2017 dividend policy ・FY2016 dividend payment of ¥100, ¥4 more than the forecast (¥96 after a mid-term revision) ・FY2017 dividend forecast of ¥120, a ¥20 increase from FY2016 (yen) 120 60 100 52 80 74 70 66 62 60 58 54 50 48 43 33 25 05/3 06/3 07/3
Slide 21: (1) Summary of consolidated operating results
5. Appendix (1) Summary of consolidated operating results (¥100 million) YoY change FY2012 FY2013 FY2014 FY2015 FY2016 (FY2015 to FY2016) Total revenues 4,215 4,426 4,417 4,723 4,937 +214 Total costs 3,692 3,932 3,945 4,237 4,426 +189 Interest expenses 69 71 68 66 69 +3 Gross profit 523 493 472 485
Slide 22: (2) Newly executed contract volume
5. Appendix (2) Newly executed contract volume (¥100 million) YoY YoY change change (%) FY2012 FY2013 FY2014 FY2015 FY2016 (amount) (FY2015 to (FY2015 to FY2016) FY2016) Leases 3,607 3,880 3,976 3,968 4,536 +568 +14.3% Finance leases 3,180 3,425 3,599 3,311 3,644 +333 +10.1% Operating leases 428 454
Slide 23: (3) Operating assets
5. Appendix (3) Operating assets (¥100 million) YoY change YoY change (amount) FY2012 FY2013 FY2014 FY2015 FY2016 (FY2015 to (%) (FY2015 to FY2016) FY2016) Leases 10,781 10,986 11,528 11,765 12,440 +674 +5.7% Finance leases 9,077 9,206 9,680 9,649 10,060 +410 +4.3% Operating leases 1,704 1,780 1,848
Slide 24: (4) Overview of non-consolidated results and principal consolidated companies' results
5. Appendix (4) Overview of non-consolidated results and principal consolidated companies’ results (¥100 million) Fuyo General Lease Co., Ltd. Fuyo Auto Lease Co., Ltd. Sharp Finance Corporation (Non-consolidated) (Ownership ratio: 100%) (Ownership ratio: 65%) FY2015 FY2016 YoY Change FY2015 FY2016