Nec Capital Solutions Limited · TSE:8793

Nec Capital Solutions — H1 FY2019 Earnings Presentation

24 slides from Nec Capital Solutions's earnings presentation, Oct 30, 2018

  1. Slide 1: Briefing Materials on the Financial Results for the 1st Half of FY2019

    Briefing Materials on the Financial Results for the 1st Half of the Fiscal Year Ending March 31, 2019 (FY2019) October 30, 2018 NEC Capital Solutions Limited

  2. Slide 2: © NEC Capital Solutions Limited 2016

    2 © NEC Capital Solutions Limited 2016

  3. Slide 3: Contents

    CONTENTS 1. Financial Results for the First Half of FY2019 1）Highlights of Consolidated Financial Statements 2）Business Environment 3）Consolidated Financial Summary 4）Consolidated Revenues by Business Segment 5）Contracts Executed by Business Segment (Consolidated) 6）Leasing/Installment Sales Busines

  4. Slide 4: 1. Financial Results for the First Half of FY2019

    1. Financial Results for the First Half of FY2019

  5. Slide 5: Highlights of Consolidated Financial Statements

    1. Financial Results for the First Half of FY2019 1） Highlights of Consolidated Financial Statements Business Environment  Total leasing contracts increased by 3.9% Y/Y.  Conditions for procuring funds remained favorable.  Liabilities were stable overall, although total liabilities increased due

  6. Slide 6: Business Environment

    1. Financial Results for the First Half of FY2019 2） Business Environment  Total Leasing Contracts: -Total leasing contracts in the industry increased by 3.9% Y/Y. -Our mainstay Information and Communication Equipment leasing increased by 8.1% Y/Y.  Bankruptcies: -The number of bankruptcies in the

  7. Slide 7: Consolidated Financial Summary

    1. Financial Results for the First Half of FY2019 3） Consolidated Financial Summary  Revenues: Revenue fell 9.1% Y/Y due to the RISA fund business’s performance and the posting of large-scale projects at cancellation of contracts on completion in the same period in the previous year.  Ordinary Inc

  8. Slide 8: Consolidated Revenues by Business Segment

    1. Financial Results for the First Half of FY2019 4）Consolidated Revenues by Business Segment ▌Revenues by Business Segment Leasing/Installment Sales Business  Revenues rose 2.3% Y/Y due to an increase in (Billions of Yen) the balance of operating assets. FY2018 FY2019  Operating income fell 10.2%

  9. Slide 9: Contracts Executed by Business Segment (Consolidated)

    1. Financial Results for the First Half of FY2019 5）Contracts Executed by Business Segment (Consolidated) ▌Contracts Executed by Business Segment ▌New Transactions by Business Segment (Billions of Yen) (Billions of Yen) FY2018 FY2019 FY2018 FY2019 2Q 2Q Y/Y Change 2Q 2Q Y/Y Change Leasing/ Installme

  10. Slide 10: Leasing/Installment Sales Business (Consolidated)

    1. Financial Results for the First Half of FY2019 6） Leasing/Installment Sales Business (Consolidated) ▌Contracts Executed by Customer Sector ▌New Transactions by Customer Sector (Billions of Yen) (Billions of Yen) FY2018 FY2019 FY2018 FY2019 2Q 2Q Y/Y Change 2Q 2Q Y/Y Change Public Sector: Governme

  11. Slide 11: Finance Business (Consolidated)

    1. Financial Results for the First Half of FY2019 7） Finance Business (Consolidated) ▌Contracts Executed by Form of Contract ▌Contracts Executed by Customer Sector (Billions of Yen) (Billions of Yen) FY2018 FY2019 FY2018 FY2019 2Q 2Q Y /Y Change 2Q 2Q Y /Y Change Public Sector: Government&Municipal

  12. Slide 12: RISA Business (Operating Income)

    1. Financial Results for the First Half of FY2019 8） RISA Business (Operating Income) Revenues, gross profit, and (Billions of Yen) operating income declined due FY2018 FY2019 2Q 2Q Y/Y Change to major projects posted in the Asset Business Revenues 12.1 3.1 -74.1% same period in the previous Gross p

  13. Slide 13: Operating Asset Balances (Consolidated)

    1. Financial Results for the First Half of FY2019 9）Operating Asset Balances (Consolidated) (Billions of Yen) Leasing/Installment Sales 808.4 Business 800 782.7  The operating asset balance increased 745.4 65.7 29.4 billion Y/Y in the public and private 61.1 2.4 49.2 26.7 RISA Business sector due t

  14. Slide 14: Fund Procurement (Consolidated)

    1. Financial Results for the First Half of FY2019 10）Fund Procurement (Consolidated) ▌Funding Cost Ratio Funding cost ratio (%)= Cost of ▌Composition of Interest-bearing Debt funding / Average Balance of (Billions of Yen) 1.0% Interest-bearing debt Sep. Sep. 0.9% 2017 C omposition 2018 C omposition

  15. Slide 15: Credit Costs (Consolidated)

    1. Financial Results for the First Half of FY2019 11） Credit Costs (Consolidated)  In credit costs, gains on reversals decreased by 200 million yen Y/Y. (Billions of Yen) 0.6 0.4 0.2 0.9 0.2 -0.7 0.0 -0.1 -0.2 -0.1 Leasing / Installment Sales Business -0.5 -0.4 Finance Business -0.6 Other Business

  16. Slide 16: 2. Forecasts for the Fiscal Year Ending in March 2019 (FY2019)

    2. Forecasts for the Fiscal Year Ending in March 2019 (FY2019)

  17. Slide 17: Earnings Forecasts (Consolidated)

    2. Forecasts for the Fiscal Year Ending in March 2019 (FY2019) 1） Earnings Forecasts (Consolidated)  Earnings remain in line with initial forecasts (Billions of Yen) ▌Consolidated Forecast Actual Forecast FY2019 FY2019 FY2019 1H 1H Revenues 101.0 - 200.0 Operating Income 4.7 - 8.0 Ordinary Income 4

  18. Slide 18: 3. Progress with the Medium-Term Plan 2017

    3. Progress with the Medium-Term Plan 2017

  19. Slide 19: Medium-term Plan 2017 Overview

    3-1. Medium-term Plan 2017 Overview Build a sustainable business foundation by completing core areas and developing new businesses. 【 Our Group Vision 】 To be a global solution service company that aims to enhance social value with customers Establish services unique Milestones in to NEC Capital tha

  20. Slide 20: Progress with the Medium-Term Plan 2017 <1/2>

    3-2. Progress with the Medium-Term Plan 2017 <1/2> 1. “Complete core areas” : Establish “services” unique to NEC Capital that demonstrates its strengths Deepen strategic partnerships with NEC  Increase in contracts due to stronger affiliation with NEC  Start of new rental service utilizing NEC pr

  21. Slide 21: Progress with the Medium-Term Plan 2017 <2/2>

    3-2. Progress with the Medium-Term Plan 2017 <2/2> 2. “Develop new businesses” : Establish sustainable “new business models” that are unique to NEC Capital, including non-financial businesses. Establish new business models in new areas (energy, healthcare, agriculture, and tourism)  Trial with mix

  22. Slide 22: The presentation materials are solely for the purpose of providing corporate information

    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

  23. Slide 23: NEC Capital Solutions Group Vision

    本資料に記載されている株主・投資家向け情報は、投資勧誘・保証を目的として作成された ものではありません。実際に投資を行う際は、ご利用者ご自身のご判断において行われるよ うお願い致します。 本資料に記載されている当社の計画、戦略および業績見通しは、将来の予測であって、リス クや不確定な要因を含んでおります。 また、本資料に記載されている経営目標は予想ではなく、将来の業績に関する経営陣の現在 の予想を反映したものでもありません。むしろ、経営陣が事業戦略の実行を通じて達成しよ うとする目標であります。 NEC Capital Solutions Group Vision 実際の業績等は、さまざまな要

  24. Slide 24: Orchestrating a brighter world

    \ Orchestrating a brighter world NEC

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