Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — 1H FY2024 Earnings Presentation
50 slides from Fuyo General Lease's earnings presentation, Nov 11, 2024
Slide 1: Financial Results Briefing for the 1st half of FY2024
Financial Results Briefing for the 1st half of FY2024 IR Presentation Fuyo General Lease Co., Ltd. Securities code: 8424 November 11,2024
Slide 2: Agenda and definitions of terms
１．Overview of consolidated operating results and business activities P3 ２．Medium-term Management Plan 「Fuyo Shared Value 2026」 P11 ３．Earnings forecast and dividend policy P38 ４． Appendix P41 Definitions of figures and terms used in this document Profit before funding ： Gross profit before deducting
Slide 3: 1H FY2024 Overview of consolidated operating results
１H FY2024 Overview of consolidated operating results 3
Slide 4: Fiscal 2024 1H consolidated operating results
Overview of consolidated operating results and business activities 決算・事業活動概況 1 Fiscal 2024 1H consolidated operating results ⚫ Profit before interest expenses grew, mainly in business domains positioned as growth drivers. Record high ordinary profit was set for the eighth consecutive period and ther
Slide 5: Profit before interest expenses; ordinary profit and profit
Overview of consolidated operating results and business activities ２ Profit before interest expenses ３ Ordinary profit and profit ⚫ Steady improvement in the profit level in each segment ⚫ Despite slight profit decrease, renewed record-high for ordinary profit ⚫ Expansion of business domains positio
Slide 6: Factor causing the increase in ordinary profit
Overview of consolidated operating results and business activities ４ Factor causing the increase in ordinary profit （￥100 million） -19 -52 +8 +109 -34 331 343 Ordinary Ordinary profit profit 1 2 3 4 ＊1 1H Profit before Personal/equipment Interest expenses Credit-related Non-operating 1H FY2023 inter
Slide 7: Changes in funding
Overview of consolidated operating results and business activities ５ Changes in funding ⚫ The outstanding balance grew due to the accumulation of operating assets ⚫ Issued hybrid bonds in September 2024 (sustainability linked bonds／total 20.0 billion yen.) ⚫ In addition to an increase in the outstan
Slide 8: Changes in costs; Net assets
Overview 決算概況 of consolidated operating results and business activities ６ Changes in costs 7 Net assets ⚫ SG&A, mainly personnel expenses, increased due to ⚫ Net assets increased against the backdrop of the expansion of investments in human capital. stable profits and increased foreign currency tran
Slide 9: Newly executed contract volume
Overview of consolidated operating results and business activities ８ Newly executed contract volume ⚫ Newly executed contract volumes increased in aircraft and mobility & logistics, but decreased in leases overall due to asset control measures in Real Estate. ⚫ Growth in Accretive also contributed t
Slide 10: Operating assets, ROA
Overview of consolidated operating results and business activities 9 Operating assets, ROA ⚫ Steadily accumulated mainly in business domains positioned as growth drivers. ⚫ Operating leases expanded with the increase in the number of self-owned aircraft. YoY (amount) YoY (%) Operating assets, ROA （¥
Slide 11: Medium-term Management Plan Fuyo Shared Value 2026
Medium-term Management Plan Fuyo Shared Value 2026 11
Slide 12: Overview of Fuyo Shared Value 2026
Medium-term Management Plan Overview of Fuyo Shared Value 2026 Pursuing sustainable growth as a corporate group by practicing CSV (Creating Shared Value) to resolve social issues while at the same time delivering economic value Vision for New Fuyo Shared Value 2026 Medium-term Achieving sustainable
Slide 13: Management Goals: Financial/Non-financial Goals
Management Goals Financial/Non-financial Goals • Pursue sustainable profit growth by further improving profitability and sustaining the growth we have achieved to date. • Enhance corporate value by realizing a decarbonized society and resolving other social issues Management Goals Non-financial goal
Slide 14: Financial/Non-financial Goals
Management Goals Financial/Non-financial Goals Results for Target value Item 1H FY2024 For FY2026 Remarks 210,000 500,000 Results show the volume of contribution to Contribution to CO2 reduction t-CO2/year t-CO2/year the reduction up to the second quarter. The amount invested in the promotion of 198
Slide 15: Business Domain-Specific Results and Topics
Business Domain-Specific Results and Topics 15
Slide 16: Positioning of Business Domains: Zone Management
Positioning of Business Domains Zone Management • In addition to helping our customers resolve their management issues, we contribute to creating value through projects such as jointly run businesses with our partners. • Invest our management resources in the Transformation Zone in our efforts to al
Slide 17: Business Domain-Specific Results
Business Domain-Specific Results ＊1 1 As of March 31, 2024 General ＊2 These figures represent an ROA for the ICT business. 1H FY2023 1H FY2024 YoY change Ordinary Operating Ordinary Operating Ordinary Operating ROA ROA ROA （¥100 million） Profit assets profit assets Profit assets Transformation 65 -
Slide 18: Business Domain-Specific Results (Comments)
General Business Domain-Specific Results (Comments) • In addition to overseas business centered on Pacific Rim Capital, domestic Mobility & Logistics business progressed smoothly, and the upward trend in profits continued. • Despite an increase in foreign currency costs, ordinary profit increased. E
Slide 19: Mobility & Logistics (1)
Rising Transformation Mobility & Logistics (1) Achieved sustainable profit growth ■ Ordinary profit and ROA for the mobility & logistics business Q2: Results 40 （¥100 million） ⚫ In addition to overseas business centered on Pacific Rim Capital, domestic business progressed smoothly, and the upward tr
Slide 20: Mobility & Logistics (2) Collaboration to Expand Business Domains
Rising Transformation Mobility & Logistics (2) Collaboration to Expand Business Domains Expansion of the business domain through collaboration with partners Vehicles area Overview of the EV Life Cycle Service Yamato Group/ EV Life Cycle Service Areas of Cooperation with Fuyo Lease Group GHG reductio
Slide 21: Energy & Environment (1)
Accelerating Transformation Energy & Environment (1) Business domains are expanding through collaboration with alliance partners. ■ Ordinary profit and ROA for the Energy & Environment business Q2: Results Operating 1,820＊1 1,956 ⚫ Despite an increase in foreign currency costs, ordinary profit is as
Slide 22: Energy & Environment (2) Expand Business Domains
Accelerating Transformation Energy & Environment (2) Expand Business Domains Progressing new initiatives both in Japan and overseas Energy Renewable Overseas/ Renewable energy business Storage Japan/ Fund exclusively for grid storage batteries Energy Projects ◼ Steadily expanded collaboration with a
Slide 23: Energy & Environment (3) Global expansion of renewable energy
Energy & Environment (3) Accelerating Transformation Development of Renewable Energy Business Global expansion of renewable energy power generation business Copyright(C) Fuyo General Lease Co., Ltd. All Rights Reserved 23
Slide 24: BPO/ICT (1)
Accelerating Transformation BPO/ICT (1) Achieved steady profit growth, backed by a favorable market environment ■ Ordinary profit and ROA for the BPO/ICT business （¥100 million） Q2: Results The ROA figures shown here are based on the results from the ICT business. 22 ⚫ Strong IT investments supporte
Slide 25: BPO/ICT (2) Expanding the service menu
Accelerating Transformation BPO/ICT（２） Expanding the service menu Expanding the service menu through collaboration with partners Azusa Institute of Research/ Mitsubishi UFJ Factors/ Payment service BPO Integrated Facility Management System “AIR-Plate” ◼ Entered into a business agreement for AIR-Plat
Slide 26: Healthcare (1)
Accelerating Transformation Healthcare（１） Revenue growth remains a work in progress. Steadily capturing finance needs ■Ordinary profit and ROA for the Healthcare business （ ¥100 million） Q2: Results ⚫ Operating assets were not increased, and ordinary profit decreased slightly. 8 7 ⚫ New contracts fo
Slide 27: Healthcare (2) Capturing Finance Needs
Accelerating Transformation Healthcare（２） Capturing Finance Needs Further accumulating assets in a market environment where an upswing is expected Healthcare business facilities Factoring of medical and nursing care fees ◼ As the repayment of the COVID-19 loan from the Welfare ◼ Expand initiatives i
Slide 28: Real Estate
Growing Performance Real Estate Asset control continued with an awareness of profitability and balance Q2: Results ■ Ordinary profit and ROA for the ⚫ Asset control continued with an awareness of profitability and Real Estate business （¥100 million） portfolio balance. ⚫ Ordinary profit declined due
Slide 29: Aircraft
Growing Performance Aircraft Profit levels improved, backed by a favorable business environment ■Ordinary profit and ROA for the Aircraft （¥100 million） business Q2: Results 54 ⚫ The accumulation of 7 self-owned aircraft progressed, mainly in Japan and North America. ⚫ In addition to a favorable bus
Slide 30: Taking part in carbon credit creation projects
Incubation ライジングトランスフォーメーション Carbon credit Taking part in carbon credit creation projects Rice Paddy Credit Pilot Project/ Philippines ◼ Joint project with Green Carbon and Nippon Koei, focused on the growth potential of the agricultural carbon credit market ◼ Reduces methane gas (with a greenhouse
Slide 31: Urban development: CSV urban development
Incubation ライジングトランスフォーメーション Urban development CSV urban development, a collective solution to various social issues Case 1 Kobe Arena Project Case 2 Kobe Suma Sea World (Suma Seaside Aquarium and Seaside Park ◼ Taking part in the private-sector, privately run project, Redevelopment Project) current
Slide 32: Towards Sustainable Value Creation
Towards Sustainable Value Creation 32
Slide 33: Non-financial Goals and Business Domains
Non-financial Goals and Business Domains Non-financial Goals and Business Domains Realizing a prosperous society and contributing to sustainable growth Expanding business domains and promoting further evolution in our relentless attempt to create new value Anticipating social changes and taking on t
Slide 34: Fuyo Lease Group's Decarbonization Strategy
Realization of a decarbonized society Fuyo Lease Group’s Decarbonization Strategy Pursuing a decarbonization strategy that focuses on a dual approach of “decarbonizing our own group” as a means of reducing risk and “decarbonizing our customers and society” as a business opportunity Copyright(C) Fuyo
Slide 35: Investment in Human Resources
Investment in human capital Investment in Human Resources Establish the “Fuyo Shared Value Creation Center,” an ecosystem for growth and learning, while at the same time promoting an unprecedented and aggressive investment in human resources in an attempt to develop high-value-added human resources
Slide 36: DX Strategy: DX Human Resource Development Program
Digital Transformation DX Strategy : DX Human Resource Development Program At Fuyo Lease, DX talent are organized into three categories, defining each role and required skills. Stepping up in the program according to their roles, and circulation of personnel between the business and systems departme
Slide 37: Approach to Solving Social Issues: Sharing with Stakeholders
CSV ライジングトランスフォーメーション Approach to Solving Social Issues: Sharing with Stakeholders Fuyo’s endowed lecture course at Oita University - CSV Management Practice Theory: Sustainable Growth of Society and Companies through Social Issue-Solving Business - ◼ We established an endowed lecture course at the
Slide 38: Earnings forecast and dividend policy
Earnings forecast and dividend policy 38
Slide 39: FY2024 consolidated earnings forecast
Earnings forecast and dividend policy 1 FY2024 consolidated earnings forecast １H FY2024 FY2024 （¥100 million） results forecast Operating profit 323 600 Ordinary profit 343 660 Profit attributable to owners of parent 228 450 Basic earnings per share（￥） 758.11 1,496.71 （Note）Previously up until FY2023
Slide 40: Changes in dividends and dividend payout ratio
Earnings forecast and dividend policy ２ Dividend policy 1H FY2024 results ¥225 as initially forecast FY2024 forecast Annual dividend payment forecast unchanged from initial forecast of ¥450 (dividend payout ratio of 30.1%) Accelerate the pace of raising the dividend payout ratio, and is expected to
Slide 41: Appendix
Appendix 41
Slide 42: Key topics (1)
Appendix 1 Key topics（１） Electric bus subscription service “Kyuden Electric Bus Service” launched on Okinoerabu Island Mobility &Logistics - Contributing to carbon neutrality of remote islands through a service that utilizes electric buses for multiple purposes Grand opening ceremony held for Kobe S
Slide 43: Key topics (2)
Appendix 1 Key topics（２） Signed a business agreement with Azusa Institute of Research for a project involving the AIR- BPO/ICT Plate integrated facility management system Hamamatsu City and eight participating companies signed a partnership agreement to develop a project for reforestation carbon cre
Slide 44: Summary of consolidated operating results
Appendix ２ Summary of consolidated operating results （¥100 million） YoY 1H 1H 1H 1H 1H (amount) FY2020 FY2021 FY2022 FY2023 FY2024 (1H FY2023 to 1H FY2024) Net sales 3,574 2,854 3,561 3,504 3,320 -184 Cost of sales 3,114 2,373 3,028 2,883 2,590 -293 Profit before interest expenses 459 481 533 621 73
Slide 45: Segment results (Consolidated)
Appendix ３ Segment results（Consolidated） Leases Installment sales Leases and installment sales total 1H 1H YoY YoY 1H 1H YoY YoY 1H 1H YoY change YoY change change change change change （¥100 million） FY2023 FY2024 (amount) (%) FY2023 FY2024 (amount) (%) FY2023 FY2024 (amount) (%) Net sales 2,962 2,7
Slide 46: Operating assets
Appendix ４ Operating assets YoY YoY （¥100 million） 1H (amount) (%) FY2020 FY2021 FY2022 FY2023 FY2024 (FY2023 to (FY2023 to 1H FY2024) 1H FY2024) Leases 17,133 16,916 16,882 17,949 18,381 +432 +2.4% Finance Leases (10,808) (10,198) (8,908) (8,587) (8,465) (-123) (-1.4%) Operating Leases (6,325) (6,7
Slide 47: Newly executed Contract Volume
Appendix ５ Newly executed Contract Volume （¥100 million） YoY YoY 1H 1H 1H 1H 1H (amount) (%) (1H FY2023 FY2020 FY2021 FY2022 FY2023 FY2024 to 1H (1H FY2023 to 1H FY2024) FY2024) Leases 2,173 2,272 1,934 2,725 2,475 -250 -9.2% Finance leases (1,608) (1,241) (1,128) (1,205) (1,501) (+296) (+24.5%) Ope
Slide 48: Newly executed lease contract volume (by type of equipment)
Appendix ６ Newly executed lease contract volume (by type of equipment) 1H 1H 1H （¥100 million） YoY Change FY2022 FY2023 FY2024 IT & office equipment 636 649 669 +19 Industrial machinery 66 77 77 -1 Civil engineering and construction machinery 14 13 6 -6 Transportation equipment 185 571 1,201 +630 Me
Slide 49: Summary of the operating results of the major subsidiaries
Appendix ７ Summary of the operating results of the major subsidiaries Sharp Finance Corporation Fuyo Auto Lease Co., Ltd. YAMATO LEASE CO., LTD. Accretive Co., Ltd. (ownership ratio: 65%) (ownership ratio: 100%) (ownership ratio: 60%) (ownership ratio: 74%) 1H 1H 1H 1H 1H 1H 1H 1H (¥100 million) YoY
Slide 50: Going Where No One Has Gone Before
“Going Where No One Has Gone Before” FUYO GENERAL LEASE CO., LTD. 50