Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — FY2020 Earnings Presentation
41 slides from Fuyo General Lease's earnings presentation, May 19, 2021
Slide 1: Financial Results Briefing for FY2020 IR Presentation
Financial Results Briefing for FY2020 IR Presentation May 19, 2021 FUYO GENERAL LEASE CO., LTD. 1
Slide 2: Agenda
Agenda 1. Overview of consolidated operating results 2. Overview of business activities 3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan 4. Earnings forecast and dividend policy 5. Appendix Earnings forecasts and other forward-looking statements provided in this material are base
Slide 3: FY2020 results
1. Overview of consolidated operating results (1) FY2020 results ・ In addition to the accumulation of assets in strategic fields centered on energy / environment and real estate, finance was also strong. In addition to continuously setting record highs in both, ROA will improve as a result of asset
Slide 4: Net sales; ordinary profit and profit attributable to owners of parent
1. Overview of consolidated operating results (2) Net sales (3) Ordinary profit and profit attributable to owners of parent In addition to accumulating operating assets in Sales continue to increase as the group expands strategic fields, the growth of the finance business has led to continuous recor
Slide 5: Factors causing the increase in ordinary profit
1. Overview of consolidated operating results (4) Factors causing the increase in ordinary profit ・Strategic fields in real estate, energy and environment, and the finance business performed well, resulting in a significant increase in profit before interest expenses* 1 and gross profit. ・Personnel
Slide 6: Profit before interest expenses
1. Overview of consolidated operating results (5) Profit before interest expenses ＊１ ＊1 Gross profit before interest expenses ・In addition to the growth in strategic fields, the Financing business performed well, and the overall profit margin continued to increase. ・In “Leases," the decline in aircr
Slide 7: Changes in funding
1. Overview of consolidated operating results (6) Changes in funding ・Limited impact of COVID-19 related damage on funding costs ・The expansion of the earnings base centered on strategic fields was highly evaluated, and Rating and Investment Information, Inc. (R & I) raised the issuer rating by one
Slide 8: Changes in costs; net assets and shareholders' equity ratio
1. Overview of consolidated operating results (8) Changes in net assets and the (7) Changes in costs shareholders’ equity ratio ・Despite a rise in personnel/equipment expenses ・Net assets have steadily accumulated stemming from an increase in consolidated subsidiaries, ・ Shareholders’ equity ratio i
Slide 9: Newly executed contract volume
2. Overview of business activities (1) Newly executed contract volume ・Secured the same level as the previous fiscal year in terms of overall executed volume ・In “Financing, Other”, large-scale solar power plants will be newly put into operation in the renewable energy field, and business-participat
Slide 10: Operating assets, ROA
2. Overview of business activities (2) Operating assets, ROA ・The accumulation of operating assets in strategic fields continued, and “Operating leases” expanded. ・In Financing and Other, there was an increase in operational investment securities, as well as a contribution from operations at large-s
Slide 11: Medium-Term Management Plan: Frontier Expansion 2021
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan Medium-Term Management Plan Ｆｒｏｎｔｉｅｒ Ｅｘｐａｎｓｉｏｎ 2021 “Go Where No One Has Gone Before” Aiming to be a corporate group that moves into uncharted businesses and continues to expand the frontier 11
Slide 12: Goals and three core strategies
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (1) Goals (target performance indicators) and three core strategies Target performance indicators Target value Item FY2020 results FY2021 Achieved earlier than target Operating assets ¥2,500.0 billion ¥2,555.9billion Earnings forec
Slide 13: Position of each business
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (2) Position of each business Disruptive Innovations Sustaining Innovations Transformation Zone Performance Zone (Grow new businesses) Payout period: (Achieve results in existing businesses) 2-3 years Revenue Performance Strategic
Slide 14: Progress: Operating assets in strategic areas
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (3) Progress on the Medium-Term Management Plan: Operating assets ・In addition to the expansion of the mobility business through the consolidation of YAMATO LEASE , real estate leasing grew significantly, and the balance of operati
Slide 15: Progress: Expansion of new fields
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (4) Progress on the Medium-Term Management Plan: Expansion of new fields ・Actively investing in R & D-type start-up companies and venture funds with the aim of expanding the frontier ・Collaboration with companies with strengths in
Slide 16: Progress: Transitions in contract spread
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (5) Progress on the Medium-Term Management Plan: <Non-consolidated> Transitions in contract spread(*1) (Ref) ・ For general leasing (* 2), we are promoting efforts with an awareness of profitability, and the level will continue to i
Slide 17: Real estate (i)
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (6) Real estate (i) Achieved the revised target value of operating asset balance ahead of schedule Contribution from transactions with a wide range of alliances ● On collaborating with alliance partners, we have accumulated project
Slide 18: Well balanced accumulation of diversified real estate
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (6) Real estate (ii) Well balanced accumulation of diversified real estate Breakdown of real estate leases by building application Based on operating assets • Percentages are approximate values based on figures used internally for
Slide 19: Aircraft
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (7) Aircraft Accumulating the number of aircraft for regrowth （％） (¥100 million) 4.0 The effects of COVID-19 are bottoming out Aircraft leasing operating assets and ROA ●Severe business environment continues due to sluggish air tra
Slide 20: Overseas
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (8) Overseas Expand overseas networks and strengthen cooperation in strategic fields (¥100 million) Expanding operations in Asia (％) Overseas business operating assets (*) and ROA ● Established a subsidiary in Taiwan and reorganize
Slide 21: Energy/environment (i)
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (9) Energy/environment (i) Renewable energy generation business: Operating asset balance increased significantly (¥100 million) (％) 40.0 Renewable energy business operating asset and ROA 36.0 Expanded joint investment with alliance
Slide 22: Energy/environment (ii) Overseas business efforts
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (9) Energy/environment (ii) Example of overseas business efforts 1. <USA> Joint participation with ENEOS in a large-scale solar power generation business in Texas ・ Joint participation with ENEOS in the solar power generation busin
Slide 23: Medical/social welfare
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (10) Medical/social welfare Solving customer management issues in collaboration with strategic fields (¥100 million) Medical/Social Welfare operating assets Growing operating asset balance (There is overlap with other business fiel
Slide 24: BPO services
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (11) BPO services Expanded service options to meet diversifying customer needs ● The number of "customer consultations" continues to grow due to the promotion of work style reforms and the expansion of telework. The number of Invoi
Slide 25: Mobility business
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (12) Mobility business Strengthening collaboration with partners in problem solving Environment surrounding the logistics industry Rapid expansion of Increased logistics- Work Reform (¥100 million) the EC market related investments
Slide 26: Initiatives related to ESGs
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan (13) Initiatives related to ESGs Accelerating efforts toward the realization of a sustainable society The head office shifted to Renewable energy Utilizing renewable energy from Fuyo’s own solar power plant ●The first initiative in
Slide 27: Effects on the spread of COVID-19
3. Progress on “Frontier Expansion 2021” Medium-Term Management Plan （14）Effects on the spread of COVID-19 ・ Limited impact on real estate, vendor leasing and cost of capital. There is no decline like assumed at the beginning of the term ・Although the aviation business will continue to face a diffic
Slide 28: FY2021 consolidated earnings forecast
4. Earnings forecast and dividend policy (1) FY2021 consolidated earnings forecast (¥100 million) FY2020 FY2021 ※The Company will the “Accounting Standard for results forecast Revenue Recognition” (ASBJ Statement No. 29), Net sales 7,403 6,100※ etc. effective from the beginning of the fiscal year en
Slide 29: Dividend policy
4. Earnings forecast and dividend policy (2) Dividend policy [FY2020] Year beginning forecast (¥220) dividend increase of ¥20 for a total dividend of ¥240. Dividend payout ratio is 24.3% [FY2021] Forecast previous FY dividend increase of ¥20 for a total dividend of ¥260, and dividend payout ratio of
Slide 30: Key topics (i)
5. Appendix (1) Key topics (i) Medical/ Concluded a capital and business agreement with ThinkCyte, Inc., which develops next-generation cell social welfare separation systems. Q1 Energy/ environment Start of operation of the world's largest fully artificial light type plant factory Energy/ environme
Slide 31: Key topics (ii)
5. Appendix (1) Key topics (ii) Other Rating and Investment Information, Inc. (R & I) raises FGL rating to "A" Energy/ Concluded a capital and business agreement with Tsubame BHB, which promotes the practical environment application of an on-site ammonia production systems Selected by the Ministry o
Slide 32: Key topics (iii)
5. Appendix (1) Key topics (iii) Medical/ Concluded a business agreement with CB Holdings, which provides solutions for the medical, long-term social welfare care, and welfare industries Aircraft Concluded a business alliance with ePlane, an online trading platform for aerospace parts Energy/ enviro
Slide 33: Key topics (iv)
5. Appendix (1) Key topics (iv) Energy/ environmen Business tie-up with Fidea Lease for "Fuyo Zero Carbon City Support Program" t New Concluded a business agreement with 3D Printing Corporation, which provides a comprehensive solution domains for 3D printing Energy/ The number of companies and organ
Slide 34: Summary of consolidated operating results
5. Appendix (2) Summary of consolidated operating results (¥100 million) YoY FY2016 FY2017 FY2018 FY2019 FY2020 Change Net sales 5,072 5,903 6,181 7,123 7,403 279 *1 Excluding interest Cost of sales＊1 4,447 5,224 5,428 6,265 6,478 212 expenses Profit before interest expenses ＊2 624 679 753 858 925 6
Slide 35: Segment results (consolidated)
5. Appendix (3) Segment results (consolidated) ＊1 Gross profit before interest expenses (¥100 million) Leases Installment sales Leases and Installment sales total YoY YoY YoY YoY YoY YoY FY2019 FY2020 Change Change FY2019 FY2020 Change Change FY2019 FY2020 Change Change (amount) (%) (amount) (%) (am
Slide 36: Newly executed contract volume
5. Appendix (4) Newly executed contract volume (¥100 million) YoY Change FY2016 FY2017 FY2018 FY2019 FY2020 (amount) YoY change (%) Leases 5,234 5,636 5,300 5,445 4,536 -909 -16.7% Finance leases [3,958] [4,052] [3,724] [3,654] [3,080] [-574] [-15.7%] Operating leases [1,276] [1,584] [1,576] [1,791]
Slide 37: Newly executed lease contract volume (by type of equipment)
5. Appendix (5) Newly executed lease contract volume (by type of equipment) (¥100 million) Segment FY2018 FY2019 FY2020 YoY change IT & office equipment 1,897 2,072 1,588 -485 Industrial machinery 414 442 276 -165 Civil engineering and construction machinery 94 102 91 -11 Transportation equipment 84
Slide 38: Operating assets
5. Appendix (6) Operating assets (¥100 million) YoY Change FY2016 FY2017 FY2018 FY2019 FY2020 (amount) YoY change (%) Leases 13,698 14,744 15,648 16,136 17,133 997 6.2% Finance leases [10,486] [10,987] [10,835] [11,068] [10,808] [-260] [-2.4%] Operating leases [3,212] [3,757] [4,813] [5,068] [6,325]
Slide 39: Leases and Financing: Asset balance and gross margin on assets
5. Appendix (7) Leases and Financing: Asset balance and gross margin on assets Leases: Asset balance and gross margin on assets Financing: Asset balance and gross margin on assets (¥100 million) (%) (¥100 million) (%) 8,000 5.0 18,000 17,133 5.0 16,136 16,000 15,648 7,000 7,257 14,744 4.0 13,698 4.0
Slide 40: Non-consolidated and principal consolidated companies' results
5. Appendix (8)Overview of non-consolidated results and principal consolidated companies’ results (¥100 million) Fuyo General Lease Co., Ltd. Sharp Finance Corporation Fuyo Auto Lease Co., Ltd. YAMATO LEASE Co., Ltd. (non-consolidated) (ownership ratio: 65%) (ownership ratio: 100%) (ownership ratio:
Slide 41: Go Where No One Has Gone Before
“Go Where No One Has Gone Before” FUYO GENERAL LEASE CO., LTD. 41