Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — FY2021 Earnings Presentation
38 slides from Mizuho Leasing's earnings presentation, May 19, 2022
Slide 1: FY2021 Financial Results Presentation Materials
FY2021 Financial Results Presentation Materials May 19, 2022 Mizuho Leasing Co., Ltd.
Slide 2: Table of Contents
Table of Contents 1. Financial Results and Business ・・・P.2 Performance Overview 2. Dividends and Earnings Forecasts and Growth Strategy for FY2022 ・・・ P.11 3. Sustainability ・・・ P.19 Appendix ・・・ P.24 1
Slide 3: 1. Financial Results and Business Performance Overview
1. Financial Results and Business Performance Overview
Slide 4: Summary of Results for FY2021
Summary of Results for FY2021 Increase in revenues due to accumulation of assets from previous years and improved profitability. Underlying profitability has steadily grown. Proactively responded to potential downside risks (preparation of preventive measures, evaluation of impairment of goodwil
Slide 5: Factors behind Change in Net Income Attributable to Owners of the Parent
Factors behind Change in Net Income Attributable to Owners of the Parent ● 3.5 ● ¥bn ●One off or specific factors 14.9 (E) 4.6 ● (F) 0.4 ● ● 21.8 (A) (B) (D) -7.1 -1.8 (C) (G) ● 4.4 14.9 -10.1 -10.7 (H) -1.1 -3.9 (A) Income from lease, financing, etc. Operating income increased reflecting the accumu
Slide 6: Overview of Credit Costs
Overview of Credit Costs COVID-19 pandemic, downturn in aircraft industry and semiconductor shortage have led to large credit costs Proactively responded to the potential downside risks - leading to focus on business promotion after FY22 Credit Costs for the last 5 fiscal years Contributing fact
Slide 7: Overview of Aircastle
Overview of Aircastle 【Impact of Russian invasion of Ukraine on Aircastle business】 (Summary of the Aircastle’s news release on April 28, 2022.) The leasing contract for all 12 aircraft leased to Russian airlines were terminated. 2 of the aircraft were repossessed, and the remaining 10 are being s
Slide 8: Operating Assets and Gross Profit before Funding Costs by Business Segment
Operating Assets and Gross Profit before Funding Costs by Business Segment In FY21, in spite of restrained domestic capital expenditures due to the COVID-19 pandemic, operating assets increased mainly in the growing segments of Real Estate / Environment and Energy. By prioritizing profitability
Slide 9: Equity in Earnings and Losses (Other non-operating Income and Loss)
Equity in Earnings and Losses (Other non-operating Income and Loss) Since FY19, the strategy to develop alliances contributed to an increase in the number of the associated companies (3 at the beginning of FY19 -> 11 by the end of FY21). The equity in earnings and losses of associated companies
Slide 10: Business Performance Overview
Business Performance Overview The contract execution volume in the first half was sluggish compared to FY20, but it recovered in the second half thanks to some large projects. For the full year, the volume was at the level of FY20 (the volume from the profitable segment “Financing and others” has
Slide 11: Funding
Funding Interest-bearing debt increased in accordance with the increase in operating assets, and the funding structure was stabilized. Funding costs decreased due to lower interest rates for foreign currencies; however, current interest rates need to be carefully monitored. Balance of Interest-b
Slide 12: 2. Dividends and Earnings Forecasts and Growth Strategy for FY2022
2. Dividends and Earnings Forecasts and Growth Strategy for FY2022
Slide 13: Earnings Forecasts for FY2022
Earnings Forecasts for FY2022 Although the uncertainty in the business environment is expected to continue, owing to the “strategies” and “preparation” for downside risks implemented in the previous financial year, we aim for a V-shape recovery ¥26 billion of net income attributable to owners of t
Slide 14: Strategic Policies for FY2022
Strategic Policies for FY2022 Pursue growth strategies focusing on growing business segments, “Real Estate / Environment and Energy”, and potentially profitable in the future; “Finance / Investment”. Aim to achieve the FY22 target of ¥26 billion in net income, which is a “clear path” to achieve
Slide 15: Growth Strategy for FY2022 (1)-1: Real Estate / Environmental & Energy Businesses
Growth Strategy for FY2022 (1)-1: Real Estate / Environmental & Energy Businesses <Real estate business*> Increase profit by expanding the assets backed by high-quality assets of our customers Accumulation of projects leveraging the alliance with Nippon Steel Kowa Real Estate <Environmental & en
Slide 16: FY2022 Growth Strategy (1)-2: Collaboration with Nippon Steel Kowa Real Estate
FY2022 Growth Strategy (1)-2: Collaboration with Nippon Steel Kowa Real Estate In August 2021, acquired shares of Nippon Steel Kowa Real Estate, a general real estate developer (22.24% stake after acquisition, 15.29% economic stake), and started a business partnership. By combining the said comp
Slide 17: FY2022 Growth Strategy (1)-3: Partnership in Environment & Energy Business
FY2022 Growth Strategy (1)-3: Partnership in Environment & Energy Business Offsite Corporate PPA: Example (Press Release dated May 17, 2022) Mizuho Leasing Company, Limited, AEON MALL Co., Ltd., Mizuho Bank, Ltd., Mizuho Securities Co., Ltd., and Eco Style Co., Ltd. have reached a basic agreement
Slide 18: FY2022 Growth Strategy (2): Finance/Investment Business
FY2022 Growth Strategy (2): Finance/Investment Business Finance/Investment Business Establishment of Innovation Co-Creation Department Newly established Innovation Co-Creation Invest in start-up companies Department dedicated to new business Started CVC operation with investment and developmen
Slide 19: Strengthen Collaboration with Alliance Partners
Strengthen Collaboration with Alliance Partners <Mizuho> Future profit from collaboration* Mizuho collaboration has been progressing successfully. *Expected future profit to be recorded by the end of new projects. Managerial accounting basis The Company and Mizuho Financial Group have signed cap
Slide 20: 3. Sustainability
3. Sustainability
Slide 21: "Identification of Issues" and "Realization of Solutions" Based on Management Philosophy
“Identification of Issues” and “Realization of Solutions” Based on Management Philosophy Broadly resolve six sustainability issues (materiality) through the Group’s wide-ranging business activities, amid drastic changes in the management environment. Revised Management Key initiatives for Solving
Slide 22: Major Projects Through Business Activities
Major Projects Through Business Activities Joint investment in the solar power generation business In March 2022, Mizuho Leasing, together with ENEOS Corporation, invested in four solar power plants in Japan. The combined capacity of these four plants is 57MW. The knowhow of ENEOS as an energy
Slide 23: Reinforcement of Sustainability Promotion System and Establishment of Environmental Targets
Reinforcement of Sustainability Promotion System and Establisment of Environmental Targets Established Sustainability Committee so Set medium- and long-term CO2 emission- that the sustainability issues can be discussed related targets toward 2050 throughout the company Sustainability issues incl
Slide 24: Sustainable Finance
Sustainable Finance Issued Mizuho Leasing’s first green bonds (unsecured straight bonds) through a public offering in the domestic market in December 2021 Aim to contribute to the realization of a sustainable society by implementing further environmental improvement businesses with the funds rai
Slide 25: Appendix
Appendix
Slide 26: Overview of the Sixth Medium-Term Management Plan (FY2019-FY2023)
Overview of the Sixth Medium-Term Management Plan (FY2019-FY2023) Providing solutions that contribute to financial and business strategies for all customers Collaboration with alliance partners (*1) Enhancing the lease financing business by Mizuho Financial Group expanding customer base One of the
Slide 27: Consolidated Targets for the Final Fiscal Year of the 6th Medium-term Management Plan
Consolidated Targets for the Final Fiscal Year of the 6th Medium-term Management Plan (FY2019-2023) Triple Dividend Net income attributable ¥30.0 Balance in the compared to payout Aim for 25% to owners of the parent billion global area or more end-March 2019 ratio 40% (¥bn) 30.0 35.7% Tripled 26.0 f
Slide 28: Changes in balance in the focus areas in the Medium-Term Management Plan
Changes in balance in the focus areas in the Medium-Term Management Plan Increase Percentage FY20 FY21 (¥bn) FY19 /decrease change (1) (2) (2) - (1) (2) / (1) Real estate 363.1 481.8 611.8 130.0 27.0% Land and building leases 139.9 155.4 204.6 49.2 31.7% Bridge/Lease 103.3 155.2 118.0 -37.2 -24.0% B
Slide 29: Consolidated B/S (Assets)
Consolidated B/S (Assets) Percentage End-Mar End-Mar End-Mar End-Mar End-Mar Change change (¥bn) 2018 2019 2020 2021 (1) 2022 (2) (2)-(1) (2)/(1) Current assets 1,602.4 1,866.6 1,947.3 2,085.1 2,166.7 81.6 3.9% Cash and deposits 30.3 25.9 22.8 21.1 25.3 4.2 20.4% Investment in lease 823.4 930.3 1,08
Slide 30: Consolidated B/S (Liabilities and Equity)
Consolidated B/S (Liabilities and Equity) Percentage End-Mar 21 End-Mar 22 Change End-Mar 18 End-Mar 19 End-Mar 20 change (¥bn) ① ② ②-① ②/① Current liabilities 1,082.1 1,294.2 1,314.1 1,492.9 1,548.4 55.5 3.7% Short-term borrowings 270.7 302.2 256.7 317.8 380.3 62.5 19.7% Current portion of corporat
Slide 31: Consolidated P/L
Consolidated P/L Fiscal year Fiscal year Fiscal year Fiscal year Percentage Fiscal year Change ended Mar ended Mar ended Mar ended Mar change (¥bn) ended Mar 18 ②-① 19 20 21 ① 22 ② ②-①/① Revenues 399.7 384.9 539.2 497.9 554.8 56.9 11.4% Gross profit before funding costs 45.2 52.6 60.3 59.3 62.1 2.8
Slide 32: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income Fiscal Fiscal Fiscal Fiscal Fiscal Percentage year year year year year Change change ended ended ended ended ended ①-② (¥bn) ②/① Mar 18 Mar 19 Mar 20 Mar 21 ① Mar 22 ② Net income 14.2 17.2 18.1 22.5 15.5 -7.0 -30.9% Unrealized gain on available-forsale
Slide 33: Gross Profit before Write-offs and Funding Costs by Segment
Gross Profit before Write-offs and Funding Costs by Segment Fiscal Fiscal Fiscal Fiscal Fiscal Percentage year year year year year Change change ended ended ended ended ended ②-① (¥bn) ②/① Mar 18 Mar 19 Mar 20 Mar 21 ① Mar 22 ② Revenues 399.7 384.9 539.2 497.9 554.8 56.9 11.4% Leasing and installmen
Slide 34: Contract execution volume by segment
Contract execution volume by segment Leasing and Installment Sales Segment Percentage FY20 FY21 Change FY19 change (¥bn) ① ② ②-① ②/① Information and communications 152.9 176.1 158.9 -17.2 -10% Real estate 180.6 154.3 151.7 -2.6 -2% Industry and factory 145.0 130.8 75.5 -55.3 -42% Transport 76.2 37.2
Slide 35: Company Profile (As of March 31, 2022)
Company Profile (As of March 31, 2022) Company Name Mizuho Leasing Company, Limited Address 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Representative Shusaku Tsuhara, President and CEO Establishment December 1, 1969 Listing Tokyo Stock Exchange, 1st Section (Code: 8425, Prime Market from April 2022)
Slide 36: Stock Status (as of March 31, 2022)
Stock Status (as of March 31, 2022) Total number of shares issued 49,004,000 Major Shareholders Number of shareholders 68,299 Shares Holding Shareholders Held Ratio Distribution of shareholders (shareholding ratio) (1,000 shares) Mizuho Financial Group, Inc. 11,283 23.03% The Master Trust Ba
Slide 37: 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: 12 directors (incl. 6 outside directors), 4 auditors (incl. 3 outside auditors, 1 part-tim
Slide 38: Connect needs to create the future
Connect needs to create the future Inquiries Mizuho Leasing Company, Limited Accounting Department Financial Planning 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 prepar
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