Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — IBJ Leasing — FY2011 Earnings Presentation
33 slides from Mizuho Leasing's earnings presentation, May 11, 2012
Slide 1: Financial Results for FY2011
Financial Results for FY2011 Presentation Materials May 11, 2012 IBJ Leasing Co., Ltd. （TSE:8425) Inquiries: Toshiyuki Nishii, Investor Relations Division ℡:+81-3-5253-6540 Fax:+81-3-5253-6539 This document contains forecasts and other forward-looking statements that are based on information availab
Slide 2: Contents
《Contents》 ◆Key Points of Presentation ・・・・・・・・・・・・・・ ・ ・ ・ 2 Ⅰ．Solidifying Operational Foundation Towards Growth（FY2011 Results） ・ 3 １．Operating Performance 4 ２．Financial Position 12 ３．P/L Overview 14 Ⅱ．Development as a New Group（FY2012 Plan）・・・・・・・・・・ 18 １．Business Strategy 19 ２．Operating Performa
Slide 3: Key Points of Presentation: New Group Development Phase
◆Key Points of Presentation New Group Development Phase rd 3 Medium-Term Management Plan （FY2011 - 2013） FY2011 FY2012 FY2013 Solidifying Operational Foundation New Group Development Phase Towards Growth ― Bolster consolidated management ― Create new value-added through Consolidated Ｍ＆Ａ Targets grou
Slide 4: Solidifying Operational Foundation Towards Growth (FY2011 Results)
Ⅰ． Solidifying Operational Foundation Towards Growth （FY2011 Results） 3
Slide 5: Operating Performance: Overall Group Contract Execution Volume
１．Operating Performance (1)Overall Group （Equipment financing + financing） ① Contract execution volume ○The Group’s overall contract execution volume （¥bn） Execution volume changes by segment increased 18.9% YoY, partly due to the performance of the two acquired companies 500 Leasing Installment sal
Slide 6: Operating assets
②Operating assets ○Due to the new consolidation of the 2 acquired companies, operating assets increased ¥282.7 billion YoY to ¥1,211.3 billion ― Particular expansion of operational foundation in the equipment financing business ○The weight of the equipment financing business increased 5% from the en
Slide 7: Equipment financing: Contract execution volume
(2) Equipment financing（lease＋Installment sales） ① Contract execution volume Contract execution volume （¥bn） 【Industry conditions】 Leasing Installment sales 236.5 ○Despite some restoration-related demand, leasing transaction 216.2 221.6 200 39.5 34.8 44.2 volume was roughly flat YoY （Japan Leasing A
Slide 8: Equipment financing assets
② Equipment financing assets ○With the consolidation of the 2 acquired companies, equipment financing assets increased significantly by ¥226.7 billion YoY ― Built a more balanced portfolio by type of equipment while maintaining our competitive edge （\bn） Equipment financing assets Equipment financin
Slide 9: Financing (Loans + Investment Securities)
(3) Financing（Loans + Investment Securities) ○Financing assets increased ¥56.0 billion from the end of （¥bn） Contract execution volume FY2010 to ¥343.9 billion. Corporate Finance 200 Real Estate Finance 189.4 ― Proactive consultative sales to address the financing Vessel Finance needs of large compa
Slide 10: Specialty finance business
(4)Specialty finance business ○In vessel finance, given the persistent strong yen and market trends, took a cautious stance including existing contracts ○In real estate finance, selected Zaibatsu group companies and major real estate companies after careful consideration of risk ○In aircraft finance
Slide 11: Highlights①: Overseas Business Development
(5) Highlights① 【Overseas Business Development】 ○Built integrated, global platform in order to enhance overseas business promotion capabilities ○Capture Japanese companies capital investment needs in Asia by developing business in a global, integrated manner ○Focusing in China and other countries wi
Slide 12: Highlights②: Restoration-related Initiatives
(6) Highlights② 【Restoration-related Initiatives】 ○Provide financial support for large rental companies that procure construction machinery for restoration work ○Flexibly respond to needs for transportation equipment, etc. which are highly public in nature and needed quickly ＜Main Initiatives＞ Prope
Slide 13: Financial Position: Summary
２．Financial Position （1） Summary （¥bn） ○Significant increase in both assets and Mar. 31, Mar. 31, Mar. 31, Mar. 31, Change liabilities due to the acquisition of the 2 2009 2010 2011 2012 ②－① ① ② Toshiba Group-related companies Assets 【Assets】 Cash and Deposits 28.0 18.5 37.7 41.3 ＋3.6 ― Operating as
Slide 14: Status of funding
（2）Status of funding 【Funding】 ○In view of the increase in operating assets, bolster Relationship Management with existing lenders and focus on further expanding the funding base ○IBJL-TOSHIBA Leasing Company, Limited newly acquired a short-term credit rating of “J-1” and is proactively utilizing CP
Slide 15: P/L Overview: Summary
３．P/L Overview （1） Summary （¥bn） FY09 FY10 FY11 Change % Change ① ② ②－① ○Operating revenue was roughly flat YoY Operating revenue A 38.7 37.4 37.5 ＋0.1 ＋0.1% at ¥37.5 billion Gross profit before write- 36.7 36.6 36.6 ＋0.0 ＋0.1% offs and funding costs ○Operating expenses increased ¥4.8 billion YoY du
Slide 16: Gross profit before write-offs and funding costs
（2） Gross profit before write-offs and funding costs 【Gross profit before write-offs and funding costs】 ○Although return declined, gross profit was roughly Gross profit before write-offs and funding costs flat YoY at ¥36.6 billion, partially due to the increase in operating assets following the M&A
Slide 17: Funding Costs
（3） Funding Costs 【ALM Operations】 ○Long-term interest rates gradually fell through the fiscal second half due to monetary easing policies in <Interest Rate Trend> 1.0% response to concerns about a weakening economy ３Y SWAP ― Flattening of the yield curve ○Judged interest rate movement and flexibly
Slide 18: Credit costs
（4） Credit costs (¥bn) Net credit costs 【Credit Costs 】 10 ○Credit costs increased significantly YoY, reflecting 8.3 8 the weakening of domestic companies and decline in 5.6 6.0 international competitiveness due to the yen’s 6 appreciation, 4 ― Elpida Memory’s bankruptcy filing 2.2 ― Preventive meas
Slide 19: Development as a New Group (FY2012 Plan)
Ⅱ．Development as a New Group （FY2012 Plan） 18
Slide 20: Business Strategy: Medium-term Management Plan
１．Business Strategy rd 3 Medium-term Management Plan（FY2011－2013） ＜Basic Goal＞ 『Step up as a multimodal corporate financial services group』 ＜5 Priority Initiatives＞ Consolidated Numerical Targets（FY2013） (1) Capitalize on customer base and solutions capabilities Operating ¥1,200 bn (2) Expand specia
Slide 21: FY2012 Management Strategy
FY2012 Management Strategy ◆ Pursue Group synergies by bolstering consolidated management new development stage management plan and take steps towards a Quickly realize the goals of the medium-term ＜Operational synergistic effects＞ ― Develop business with a view to growth and New development stage p
Slide 22: FY2012 Earnings Forecast
２．FY2012 Earnings Forecast 【Business Environment】 ○While the Japanese economy is expected to recover on the back of internal demand brought about by restoration-related demand, depending on external factors such as rising crude oil prices and the yen appreciating once again, there is a possibility o
Slide 23: Appendix
IBJ 1B) LEASING CO, LTD. 22
Slide 24: Company Overview
(1) Company Overview Company name: IBJ Leasing Company, Limited Address: 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Business description: Multimodal Financial Services Representative: Tsutomu Abe, President and CEO Establishment: December 1, 1969 Listing: Tokyo Stock Exchange, 1st Section (Code: 842
Slide 25: Shareholders
(2) Shareholders ○20 largest shareholders (as of March 31, 2012) Shareholder Shares held Ratio (thousand) (%) The Dai-ichi Life Insurance Company, Limited 2,930 7.95 ○Outstanding shares: 36,849 thousand Mizuho Trust & Banking (Nissan Motor. Co., Ltd. Retirement Benefit Trust Account) 1,750 4.74 ○Sha
Slide 26: IBJ Leasing Group
(3) IBJ Leasing Group （as of March 31, 2012） ※IBJ Leasing Co., Ltd’s ownership ratio is in parenthesis Expansion of Business Sphere ― Utilize client base held by operating companies and financial IBJ Leasing Co., institutions IBJL Toshiba Leasing （90%） Dai-ichi Leasing （90%） Nissan Leasing （100%） Ma
Slide 27: Acquisition of 2 Toshiba Group Finance Companies
(4) Acquisition of 2 Toshiba Group Finance Companies 【Overview of Acquisitions】 （Acquisition Date: February 1, 2012） ○Acquired company that took over Toshiba Finance’s corporate business division (IBJL Toshiba Leasing) ― Post-acquisition ownership ratio (IBJ Leasing = 90%, Toshiba =10%) (Acquisition
Slide 28: Business Development of the Acquired Companies
【Business Development of the 2 Acquired Companies】 ○Absorb Toshiba Group’s wide-ranging client base and business scope into the IBJ Leasing Group ― Toshiba Group’s ①Capital investment finance ②Factoring service ③Vendor financing for products ○Take advantage of IBJ Leasing’s finance know-how and fund
Slide 29: Consolidated B/S (assets)
(5)-1 Consolidated B/S (assets) ( ¥bn) 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 Change % change (1) (2) (2)－(1) (2)/(1) Current assets 440.1 989.7 904.9 947.9 1,229.1 +281.2 +29.7% Cash, cash equivalents 16.7 28.0 18.5 37.7 41.3 +3.6 +9.4% Lease receivables ― 575.4 522.3 511.7 704.2 +192.5
Slide 30: Consolidated B/S (Liabilities, Equity)
(5)-2 Consolidated B/S (Liabilities, Equity) (¥bn) 3/31/2008 3/31/2009 3/31/2010 3/31/2011 3/31/2012 Change % change (1) (2) (2)－(1) (2)/(1) Current liabilities 806.8 649.4 701.6 705.9 900.9 +195.0 +27.6% Short-term borrowings 102.3 126.2 92.6 137.5 172.9 +35.4 +25.8% Current portion of long-term de
Slide 31: Consolidated statements of income
(6) Consolidated statements of income (¥bn) FY2007 FY2008 FY2009 FY2010 FY2011 Change % change (1) (2) (2)－(1) (2)/(1) Revenues 341.3 298.7 263.6 256.1 270.1 +14.0 +5.5% Gross profit before funding costs 36.4 38.2 36.7 36.5 36.6 +0.1 +0.1% Funding costs 9.8 10.1 7.2 5.5 5.3 -0.2 -3.2% Gross profit 2
Slide 32: Consolidated statement of comprehensive income
(7) Consolidated statement of comprehensive income (¥bn) FY2009 FY2010 FY2011 Change % change Net income before minority interests 7.1 9.1 4.4 -4.7 -51.2% Unrealized gain on available-for-sale 1.4 -0.5 -0.0 +0.5 +97.3% securities Deferred loss on derivatives under -0.0 -0.0 -0.0 +0.0 +72.9% hedge ac
Slide 33: Gross profit before write-offs and funding costs by segment
(8) Gross profit before write-offs and funding costs by segment (¥bn) FY2007 FY2008 FY2009 FY2010 FY2011 Change % change (1) (2) (2)－(1) (2)/(1) Revenues 341.3 298.7 263.6 256.1 270.1 +14.0 +5.5% Leasing 312.5 273.7 242.0 233.8 249.6 +15.8 +6.8% Installment sales 20.7 16.9 14.5 14.2 11.6 -2.6 -18.2%