Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — H1 FY2019 Earnings Presentation
34 slides from Mizuho Leasing's earnings presentation, Nov 14, 2019
Slide 1: FY2019 First-Half Financial Results Presentation Materials
FY2019 First-Half Financial Results Presentation Materials November 14, 2019 (Japan time) Mizuho Leasing Co., Ltd.
Slide 2: Table of Contents
Table of Contents Financial Results and Business Performance Overview ・・・ P.3 Status of Sixth Mid-term Management Plan ・・・ P.12 Appendix ・・・ P.24 22
Slide 3: Financial Results and Business Performance Overview
Financial Results and Business Performance Overview
Slide 4: Summary of First-Half Results for FY2019
Summary of First-Half Results for FY2019 Recorded gross profit before write-offs and funding costs of ¥28.9 billion and net income attributable to owners of the parent of ¥8.9 billion, a new record-high on a semiannual basis. －Each income indicator progressed favorably against full-year forecasts.
Slide 5: Overview of Financial Results
Overview of Financial Results FY17 FY18 FY19 % (¥bn) Change 1H 1H 1H Change Increased due to sale of properties upon completion of real estate-related bridge Revenues 178.4 179.8 254.9 +75.1 +42% scheme projects Gross profit before write- offs and funding costs 22.2 25.0 28.9 +3.9 +16% Gross profit
Slide 6: Business Performance Overview
Business Performance Overview FY17 FY18 FY19 % (¥bn) Change 1H 1H 1H Change For leasing and installment sales, execution volume increased in areas Contract execution volume 641.6 795.0 624.2 -170.8 -21% such as industrial and factory, information and communications, and Leasing and transport insta
Slide 7: Contract Execution Volume / Leasing and Installment Sales
Contract Execution Volume / Leasing and Installment Sales Contract execution volume by equipment type FY17 FY18 FY19 % (¥bn) Change 1H 1H 1H Change Industrial and factory 37.9 60.6 87.3 +26.7 +44% Captured large projects Information and communications 42.3 45.0 65.2 +20.2 +45% Widely captured capita
Slide 8: Contract Execution Volume / Financing
Contract Execution Volume / Financing Contract execution volume FY17 FY18 FY19 % (¥bn) Change 1H 1H 1H Change Commercial Short-term commercial distribution finance Distribution Finance / 410.7 446.3 254.9 -191.4 -43% decreased Loan, etc. Aircraft 7.8 6.4 8.0 +1.6 +24% Executed large-scale bridge sch
Slide 9: Balance (Global / Aircraft / Real Estate)
Balance (Global / Aircraft / Real Estate) Global Aircraft Real estate Leasing Financing, etc. Subsidiaries Cross-borders, etc. (¥bn) (¥bn) Bridge / Investment, etc. Financing Bridge / Leasing Right axis: number of aircrafts (operating leases) Land Leasing / Building Leasing 159.7 (¥bn) 103.8 (aircra
Slide 10: Funding
Funding Proactively utilized market procurement including issuing of new corporate bonds (3-year bond, ¥20 billion) The increase in funding costs is due to higher foreign currency borrowings following an increase in foreign currency assets Interest-bearing debt Funding costs (ratio) FY17 FY18 FY
Slide 11: Earnings Forecasts and Dividends
Earnings Forecasts and Dividends Net income attributable to owners of the parent steadily progressed against FY2019 annual plans. Based on the recent financial results and celebrating the 50th anniversary of establishment in December 2019, implement a commemorative dividend of ¥2 as a token of a
Slide 12: Status of Sixth Mid-term Management Plan
Status of Sixth Mid- term Management Plan
Slide 13: Overview of Sixth Mid-term Management Plan (FY 2019-2023)
Overview of Sixth Mid-term Management Plan (FY 2019-2023) Providing solutions that contribute to financial and Cooperation with strategic business partners business strategies for all our clients （※1） Enhancing lease financing business by expanding Mizuho Financial Group client base One of the lar
Slide 14: Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Plan
Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan (FY 2019-2023) Dividend Net income attributable Balance in Triple Aim for 25% to owners of the parent ¥30 billion the global area compared with that at payout or more the end of March 2019 ratio (¥bn) 30.0 Triple (Forec
Slide 15: Overview of Actions on Sixth Mid-term Plan for First-Half of FY2019
Overview of Actions on Sixth Mid-term Management Plan for First-Half of FY2019 Promote Business Strategies Listed in the Sixth Mid-term Management Plan Provide solutions that contribute to clients’ issue solving and business development; solid results are shown in each of the focus areas Promote coo
Slide 16: Acquisition of Shares of Aircastle
Acquisition of Shares of Aircastle The company acquires 25% of the Aircastle shares (Acquisition price: approximately JPY 69 billion) Promote improvement of presence in the global market by making Aircastle a platform and facilitating further expansion of the business foundation Overview of Airc
Slide 17: Advantage of Aircastle
Acquisition of Shares of Aircastle Overview of the acquisition Strategic significance The Company and Marubeni Corp. will acquire 100% of Aircastle’s shares To further expand the aircraft business mentioned in the Sixth Mid-term Marubeni Corp. increased its directly-owned shares up to 50%, and
Slide 18: New Business Strategy
New Business Strategy Promote new business strategy, respond to customers with higher business model, and facilitate joint business promotion Strategies One example of business model Action/Direction Service Scheme Tie-Up Jointly with Paramount O＆M • Support customers with creation of Customer Pro
Slide 19: Environment and Energy: Strategies and Examples
Environment and Energy: Strategies and Examples Cultivate business in renewable energy operations/energy-saving solutions Expand business fields through cooperation with energy operators and development of energy technology Strategies Examples of Actions Improve power system, Domestic consumptio
Slide 20: Medical and Healthcare: Strategies and Examples
Medial and Healthcare: Strategies and Examples Expand service business in cooperation with manufacturers Promote nursing care, healthcare, and overseas businesses that are expecting high growth, in addition to domestic medicine Strategies Examples of Actions Collaborate with • Newly cooperate wi
Slide 21: Global: Strategies and Examples
Global: Strategies and Examples Expand both Japanese and non-Japanese client bases; respond to needs in equipment investment and business development Aim to collaborate with Marubeni Corporation in overseas lease finance business Strategies Examples of Actions • Strengthen business with Leasing
Slide 22: Aircraft: Strategies and Examples
Aircraft: Strategies and Examples Expand aircraft operating lease business through acquiring better aircraft management and marketing capabilities Aim to enter business related to engines, parts, and other aircraft peripherals while accumulating aircraft-backed collateralized loans Strategies Ex
Slide 23: Real estate: Strategies and Examples
Real estate: Strategies and Examples Reinforce initiatives in responding to the real estate strategies of companies, in addition to areas with high societal needs such as hotels, childcare, and nursing care Drive forward expansion of bridge schemes, investments in overseas investment funds, and
Slide 24: Appendix
Appendix
Slide 25: Company Profile
Company Profile Company Name Mizuho Leasing Company, Limited Address 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Representative Hiroshi Motoyama, President and CEO Establishment December 1, 1969 Listing Tokyo Stock Exchange, 1st Section (Code: 8425) Capital Stock 26,088 million yen (Outstanding share
Slide 26: Stock Status (As of September 31, 2019)
Stock Status (As of September 31, 2019) Number of shares issued 49,004,000 Major Shareholders Number of shareholders 33,306 Shares Holding Shareholders Held Distribution of shareholders (shareholding ratio) (1,000 shares) Ratio Mizuho Bank, Ltd. 11,283 23.03% Individuals and Others The Dai-i
Slide 27: Internal Control System
Internal Control System Mizuho Leasing has established a system to ensure proper execution of business operations, and is operating this system in an effective and appropriate manner. Management structure: 11 directors (incl. 6 outside directors), 4 auditors (incl. 4 outside auditors) ― Appoint
Slide 28: Consolidated Balance Sheet (Assets)
Consolidated Balance Sheet (Assets) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change (¥bn) 2016 2017 2018 2019 (A) 2019 (B) (B) – (A) (B) / (A) Current assets 1,552.9 1,564.7 1,602.4 1,866.6 1,870.4 +3.8 +0.2% Cash and deposits 49.4 42.3 30.3 25.9 14.4 -11.5 -44.5% Investment i
Slide 29: Consolidated Balance Sheet (Liabilities and Equity)
Consolidated Balance Sheet (Liabilities and Equity) End of Mar End of Mar End of Mar End of Mar End of Sep Change % Change (¥bn) 2016 2017 2018 2019 (A) 2019 (B) (B) – (A) (B) / (A) Current liabilities 1,119.2 1,045.8 1,082.1 1,294.2 1,280.2 -14.0 -1.1% Short-term borrowings 364.4 312.7 270.7 302.2
Slide 30: Consolidated Statements of Income
Consolidated Statements of Income FY15 FY16 FY17 FY18 FY19 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Revenues 166.2 181.4 178.4 179.8 254.9 +75.1 +41.8% Gross profit before write-offs and 21.4 21.8 22.2 25.0 28.9 +3.9 +15.9% funding costs Funding costs 3.2 2.6 3.4 4.1 5.0 +0.9
Slide 31: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income FY15 FY16 FY17 FY18 FY19 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Net income 6.2 7.7 6.9 8.9 9.1 +0.2 +1.6% Unrealized gain on available-for- 1.8 -1.4 1.6 -0.5 1.6 +2.1 - sale securities Deferred gain/loss on derivatives -0.1 0.0
Slide 32: Gross Profit Before Write-offs and Funding Costs by Segment
Gross Profit Before Write-offs and Funding Costs by Segment FY15 FY16 FY17 FY18 FY19 Change % Change (¥bn) 1H 1H 1H 1H (A) 1H (B) (B) – (A) (B) / (A) Revenues 166.2 181.4 178.4 179.8 254.9 +75.1 +41.8% Leasing and installment sales 161.1 175.7 171.9 171.1 246.0 +74.9 +43.8% Finance 4.8 5.3 6.3 7.9 8
Slide 33: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Certain statements in this document are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “expects,” “intends,” “plans,”
Slide 34: Inquiries
Inquiries Mizuho Leasing Company, Limited Corporate Planning Department Corporate Communication Division Tel: +81-3-5253-6540 Fax: +81-3-5253-6539 This document contains forecasts and other forward-looking statements that are based on information available at the time of preparation of this document
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