Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — IBJ Leasing — H1 FY2012 Earnings Presentation
29 slides from Mizuho Leasing's earnings presentation, Nov 6, 2012
Slide 1: FY2012 First Half Financial Results Presentation Materials
FY2012 First Half Financial Results Presentation Materials November 6, 2012 IBJ Leasing Co. Ltd. (Securities Code: 8425) Inquiries: Toshiyuki Nishii, Investor Relations Division Telephone:+81-3-5253-6540 Fax: +81-3-5253-6539 E-Mail: toshiyuki.nishii@ibjl.co.jp These opinions or estimates of future p
Slide 2: Contents
Contents ◆Presentation Key Points ････････････････････ 2 I. Financial Results Highlights ･･･････････････ 3 II. Business Performance Overview ･･････････ 6 III. FY2012 First Half P/L Overview ････････････ 14 IV. FY2012 Full-year Earnings Forecast ･･･････ 18 (Appendix) ････････････････････････････････
Slide 3: Presentation Key Points
◆Presentation Key Points Reaffirm Group synergy after consolidation of IBJL-TOSHIBA Leasing Core earnings power secure as 1Q credit cost burden normalizes in 2Q Leveraging Group synergies to build domestic leasing assets and expand overseas Engage in vessel, real-estate and other specialty finance c
Slide 4: I. Financial Results Highlights
I. Financial Results Highlights 3
Slide 5: FY2012 First Half Financial Results Highlights
1. FY2012 First Half Financial Results Highlights ○Boosted by acquisitions, revenues continue robust uptrend in 2Q ○All profit levels rebound in 2Q after credit costs normalize; steady progress towards annual targets (¥bn) FY2011 FY2012 1Q 2Q 1st Half 1Q 2Q 1st Half Gross profit before write- offs a
Slide 6: New Start for Group in FY2012
2. New Start for Group in FY2012 ○Group’s sales platform is expanding around equipment leases, with a more balanced portfolio across all types of equipment ○Business domain and offerings are steadily expanding by leveraging Toshiba Group’s broad customer base and market footprint ○Pursuing new syner
Slide 7: II. Business Performance Overview
II. Business Performance Overview 6
Slide 8: Recent Sales Trends: Equipment Financing
1. Recent Sales Trends (1) Equipment Financing (leasing + installment sales) [Industry] ○Lease transaction volume finally bottoms out after Lehman Brothers financial crisis and the great east Japan earthquake, with 10% year-on-year rise [IBJ Leasing] ○Contract execution volume and operating assets s
Slide 9: Equipment Financing Breakdown
(2) Equipment Financing Breakdown Contract Execution Volume by Equipment Type (¥bn) - Robust increase in industrial, medical FY10 FY11 FY12 equipment financing - 1st 1st Change (%) 1st half half half Industrial and Industrial and factory equipment 23.4 15.0 59.1 +44.1 （+294%） factory ○Captured large
Slide 10: Financing (loans and investment securities)
(3) Financing (loans and investment securities) ○Contract execution volume surged ¥141.2bn year on year to ¥205.7bn - Sharp rise in factoring services to Toshiba and its Group companies ○Captured broad financing needs of customers, generating net rise in operating assets versus end of March 2012 Con
Slide 11: Capturing Domestic Leasing Demand
(4) Sales Trends: Capturing Domestic Leasing Demand ― Generate Group synergies to promote expansion of business domain ― [Healthcare/Welfare] ○Significantly expanding vendor finance sales platform by leveraging sales networks of Siemens and Toshiba Medical Contract execution volume for medical equip
Slide 12: Sales Trends: Overseas Expansion
(5) Sales Trends: Overseas Expansion ○Meet overseas investment needs of Japanese companies through co-ordination of domestic and overseas sales divisions ○Collaborate with Toshiba Group to actively expand leasing in Asia Asian Subsidiaries ○Asia Desk established in Thailand (Bangkok) to open door fo
Slide 13: Specialty Finance Trends ①
(6) Specialty Finance Trends ① Specialty Finance Share of Operating - Cautious and nimble approach to vessel and real- Assets estate finance while analyzing markets amid rapidly Operating assets as of Sep. 30, 2012 changing environments ¥1,237.4bn Corporate finance ¥162.5bn (13.1%) [Vessel Finance]
Slide 14: Specialty Finance Trends ②
(7) Specialty Finance Trends ② [Real-estate Finance Environment] Real-estate Finance Operating Assets (¥bn) - Signs of steady improvement in some superior Project basis Corporate risk basis Tokyo metropolitan area properties despite a 150 severe overall business environment 122.0 104.6 105.2 - Finan
Slide 15: III. FY2012 First Half P/L Overview
III. FY2012 First Half P/L Overview 14
Slide 16: Gross Profit before Write-offs and Funding Costs
1. Gross Profit before Write-offs and Funding Costs [Gross Profit before Write-offs and Funding Costs] ○Equipment financing profits surged, partly on contribution of IBJL-TOSHIBA Leasing [Yield on Investment] ○Yield continues to improve through use of sophisticated consultative sales to attract high
Slide 17: Funding Costs
2. Funding Costs [Funding Overview] ○IBJL-TOSHIBA Leasing also utilizing CP and taking advantage of low interest rates - IBJ Leasing: a-1, J-1 (¥350bn issue limit); IBJL-TOSHIBA Leasing: J-1 (¥150bn issue limit) [Funding Costs] ○CoF ratio lowered through higher market fund ratio, review of domestic
Slide 18: Credit Costs
3. Credit Costs [Credit Costs Overview] ○Large 1Q credit costs due to allowance for real-estate asset finance (¥3.2bn) ○¥0.2bn reversal in 2Q due to decline in new credit costs [Credit Management Policy] ○Promote rigorous credit management based on trends in customer performance and market developme
Slide 19: IV. FY2012 Full-year Earnings Forecast
IV. FY2012 Full-year Earnings Forecast 18
Slide 20: FY2012 Full-year Earnings Forecast
FY2012 Full-year Earnings Forecast [Business Environment] ○Global economic recovery expected to take considerable time, as U.S., European and Asian economies remain sluggish and Japanese economy is impacted by protracted yen appreciation [FY2012 full-year earnings forecast] ○Despite steady progress
Slide 21: Appendix
IBJ 1B) LEASING CO, LTD. 20
Slide 22: Company Profile
(1) Company Profile Company name IBJ Leasing Company, Limited Head office 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001, Japan Business Multimodal financial services Representative Tsutomu Abe, President and CEO Establishment December 1, 1969 Listing Tokyo Stock Exchange, 1st Section (Code: 8425) Capit
Slide 23: Shareholders
○ 20 largest shareholders (2) Shareholders (as of Sep. 30, 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 Co., Ltd (Nissan Motor Co., Ltd. Retirement Benefit Trust Account) 1,750 4
Slide 24: IBJ Leasing Group
(3) IBJ Leasing Group （as of October 31, 2012） ※IBJ Leasing Co., Ltd’s ownership ratio is in parenthesis Expansion of Market Footprint - Utilize client base held by operating companies and financial institutions IBJL Toshiba Leasing （90%） Dai-ichi Leasing （90%） Nissan Leasing （100%） Main clients: To
Slide 25: Consolidated B/S (Assets)
(4)-1 Consolidated B/S (Assets) (Unit: ¥bn) Mar. 31, Mar. 31, Mar. 31, Mar. 31, Sep. 31, Change Change 2009 2010 2011 2012 2012 ②－① ②/① ① ② Current Assets 989.7 904.9 947.9 1,229.1 1,244.0 ＋14.9 ＋1.2% Cash and cash equivalents 28.0 18.5 37.7 41.3 41.3 -0.0 -0.0% Lease receivables 575.4 522.3 511.7 7
Slide 26: Consolidated B/S (Liabilities and Net Worth)
(4)-2 Consolidated B/S (Liabilities and Net Worth) (Unit: ¥bn) Mar. 31, Mar. 31, Mar. 31, Mar. 31, Sep. 31, Change Change 2009 2010 2011 2012 2012 ②－① ②/① ① ② Current Liabilities 649.4 701.6 705.9 900.9 961.7 ＋60.8 ＋6.7% Short-term borrowings 126.2 92.6 137.5 172.9 194.1 ＋21.2 ＋12.2% Current portion
Slide 27: Consolidated statements of income (first half)
(5) Consolidated statements of income (first half) (Unit: ¥bn) FY08 FY09 FY10 FY11 ① FY12 ② Change Change 1st Half 1st Half 1st Half 1st Half 1st Half ②－① (2)/(1) Revenues 150.8 134.2 128.6 128.9 178.8 ＋49.9 ＋38.7% Gross profit before write-offs and funding 19.5 18.7 18.9 17.4 23.6 ＋6.2 ＋35.5% costs
Slide 28: Consolidated statements of comprehensive income (first half)
(6) Consolidated statements of comprehensive income (first half) (¥bn) FY10 FY11 FY12 Change % 1st half 1st half 1st half change Net income before minority interests 4.9 5.4 4.6 -0.8 -13.9% Unrealized gain on available-for-sale -0.6 -0.2 -0.5 -0.3 -166.2% securities Deferred loss on derivatives unde
Slide 29: Gross profit before write-offs and funding costs by segment
(7) Gross profit before write-offs and funding costs by segment (first half) (¥bn) FY08 FY09 FY10 FY11 ① FY12 ② Change % change 1st Half 1st Half 1st Half 1st Half 1st Half ②－① (2)/(1) Revenues 150.8 134.2 128.6 128.9 178.8 ＋49.9 ＋38.7% Leasing 137.7 124.5 118.0 119.2 166.6 ＋47.4 ＋39.8% Installment