Nec Capital Solutions Limited · TSE:8793

Nec Capital Solutions — FY2019 Earnings Presentation

25 slides from Nec Capital Solutions's earnings presentation, Apr 26, 2019

1. Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2019 (FY2019)

   Financial Results Briefing for the Fiscal Year Ended March 31, 2019 (FY2019) April 26, 2019 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 Fiscal Year Ended March 31, 2019 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

4. Slide 4: 1. Financial Results for Fiscal Year Ended March 31, 2019

   1. Financial Results for Fiscal Year Ended March 31, 2019

5. Slide 5: Highlights of Consolidated Financial Statements

   1. Financial Results for Fiscal Year Ended March 31, 2019 1） Highlights of Consolidated Financial Statements Business Environment  Total leasing contracts increased by 3.3% Y/Y.  Conditions for procuring funds remained favorable.  The number of bankruptcies and total liabilities both declined Y/Y

6. Slide 6: Business Environment

   1. Financial Results for Fiscal Year Ended March 31, 2019 2） Business Environment  Total Leasing Contracts: -Total leasing contracts in the industry increased by 3.3% Y/Y. -Our mainstay Information and Communication Equipment leasing increased by 7.3% Y/Y.  Bankruptcies: -The number of bankruptcie

7. Slide 7: Consolidated Financial Summary

   1. Financial Results for Fiscal Year Ended March 31, 2019 3） Consolidated Financial Summary  Revenues: Revenue fell 11.8% Y/Y due to the sale of health care-related real estate in the previous year and the posting of large-scale fund revenue in the RISA business.  Ordinary Income: In addition to t

8. Slide 8: Consolidated Revenues by Business Segment

   1. Financial Results for Fiscal Year Ended March 31, 2019 4）Consolidated Revenues by Business Segment ▌Revenues by Business Segment Leasing/Installment Sales Business  Revenues rose 1.7% Y/Y. Gross profit stopped (Billions of Yen) falling Y/Y. FY2018 FY2019  Operating income fell 9.1% Y/Y due to t

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

   1. Financial Results for Fiscal Year Ended March 31, 2019 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 Y/Y Change Y/Y Change Leasing/ Installment S

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

    1. Financial Results for Fiscal Year Ended March 31, 2019 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 Y/Y Change Y /Y Change Public Sector: Government

11. Slide 11: Finance Business (Consolidated)

    1. Financial Results for Fiscal Year Ended March 31, 2019 7） Finance Business (Consolidated) ▌Contracts Executed by Form of Contract ▌Contracts Executed by Customer Sector (Billions of Yen) FY2018 FY2019 (Billions of Yen) Y/Y Change FY2018 FY2019 Public Sector: Y/Y Change Government&Municipal 0.8 0.

12. Slide 12: RISA Business (Operating Income)

    1. Financial Results for Fiscal Year Ended March 31, 2019 8） RISA Business (Operating Income) Revenues, gross profit, and (Billions of Yen) operating income declined due FY2018 FY2019 Y/Y Change to major projects posted in the Asset Business Revenues 12.7 8.2 -35.3% previous year Gross profit 8.7 6.

13. Slide 13: Operating Asset Balances (Consolidated)

    1. Financial Results for Fiscal Year Ended March 31, 2019 9）Operating Asset Balances (Consolidated) (Billions of Yen) Leasing/Installment Sales 822.0 826.8 Business 800 767.9 66.8 62.1  The operating asset balance increased 2.1 2.9 15.4 billion yen Y/Y in the public and 53.0 27.0 RISA Business priv

14. Slide 14: Procuring Funds (Consolidated)

    1. Financial Results for Fiscal Year Ended March 31, 2019 10）Procuring Funds (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 Mar. Mar. 2018 C omposition 2019 C ompositio

15. Slide 15: Credit Costs (Consolidated)

    1. Financial Results for Fiscal Year Ended March 31, 2019 11） Credit Costs (Consolidated)  Credit costs increased 800 million yen due to a decline in the reversal of allowance for doubtful accounts. (Billions of Yen) 0.6 0.4 -0.7 0.1 0.2 0.1 0.2 0.0 0.1 -0.1 -0.1 -0.2 Leasing / Installment Sales Bu

16. Slide 16: Forecasts for the Fiscal Year Ending March 2020 (FY2020)

    2. Forecasts for the Fiscal Year Ending March 2020 (FY2020)

17. Slide 17: Earnings Forecasts (Consolidated)

    2. Forecasts for the Fiscal Year Ending March 2020 (FY2020) 1） Earnings Forecasts (Consolidated)  Earnings reached record highs for the second straight year in the fiscal year ended March 2019.  NEC Capital Solutions Limited expect earnings in the fiscal year ending March 2020 to exceed the previo

18. Slide 18: 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 launching new businesses. <<Our Group Vision >> To be a global solution service company that aims to enhance social value with customers Establish services unique to Milestones in NEC Capital t

20. Slide 20: Medium-Term Plan 2017: Status of Initiatives 1/2

    ３－２. Medium-Term Plan 2017: Status of Initiatives 1/2 1) “Complete core areas”: Establish services unique to NEC Capital Solutions Limited that play to its strengths Establish and deepen strategic partnerships with NEC  Increase in contracts due to stronger affiliation with NEC  Expand private ma

21. Slide 21: Medium-Term Plan 2017: Status of Initiatives 2/2

    ３－２. Medium-Term Plan 2017: Status of Initiatives 2/2 2) ”Develop new businesses”: Establish sustainable new business models that are unique to NEC Capital Solutions Limited, including non-financial businesses.  Establish new business models in new areas (energy, agriculture, healthcare, and touris

22. Slide 22: Medium-Term Plan 2017: Progress in Achieving Income Forecasts

    3-3. Medium-Term Plan 2017: Progress in Achieving Income Forecasts NEC Capital Solutions Limited expects total income for the three years since the medium-term plan 2017 was established to far exceed forecasts. When Medium-Term Plan 2017 was established (Billions of Yen) FY2018 FY2020 Medium-term FY

23. Slide 23: The presentation materials are solely for the purpose of providing corporate information of NEC

    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

24. Slide 24: 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

25. Slide 25: Orchestrating a brighter world

    \ Orchestrating a brighter world NEC

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