Nec Capital Solutions Limited · TSE:8793
Nec Capital Solutions — FY2013 Earnings Presentation
22 slides from Nec Capital Solutions's earnings presentation, Apr 28, 2014
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 2014 (FY2013)
Financial Results Briefing for the Fiscal Year Ended March 2014 (FY2013) April 28, 2014 NEC Capital Solutions Limited
Slide 2: NEC Capital Solutions Group Vision
NEC Capital Solutions Group Vision To be a global solution service company that aims to enhance social value with customers Page 2 © NEC Capital Solutions Limited 2014
Slide 3: Highlights of Consolidated Financial Statements
1. Financial Results for Fiscal Year Ended March 31, 2014 1) Highlights of Consolidated Financial Statements Business Environment -Total leasing contracts grew year-on-year (Y/Y), but competition in leasing profit worsened due to the monetary easing by the Bank of Japan. -Conditions for procuring fu
Slide 4: Business Environment
1. Financial Results for Fiscal Year Ended March 31, 2014 2) Business Environment Total Leasing Contracts -Our mainstay Information and Communication Equipment leasing increased by 1.4% Y/Y. -Total leasing contracts grew by 3.7% Y/Y for the industry as a whole on strong trends in the Construction Ma
Slide 5: Consolidated Financial Summary
1. Financial Results for Fiscal Year Ended March 31, 2014 3) Consolidated Financial Summary -Revenues: Achieved revenues largely unchanged Y/Y. -Ordinary income: : Gross profit on leases fell Y/Y associated with lower returns on assets, but ordinary income increased by 76.2% Y/Y on lower selling, ge
Slide 6: Consolidated Financial Summary (Excluding minority interests)
1. Financial Results for Fiscal Year Ended March 31, 2014 (For reference) Consolidated Financial Summary (Excluding minority interests in net income) -Ordinary income on net basis (excluding minority interests in net income) declined by 6.0% Y/Y, JPY 7.7bn. * Minority interests in net income is the
Slide 7: Consolidated Revenues by Business Segment
1. Financial Results for Fiscal Year Ended March 31, 2014 4) Consolidated Revenues by Business Segment ▌Revenues by Business Segment Leasing/Installment Sales Business (Unit JPY billion) -Revenues decreased by 1.9% Y/Y. Operating FY2012 FY2013 income declined by 29.3% Y/Y on such things as Y/Y Chang
Slide 8: Contracts Executed by Business Segment
1. Financial Results for Fiscal Year Ended March 31, 2014 5) Contracts Executed by Business Segment (Consolidated) ▌Contracts Executed by Business Segment ▌New Transactions by Business Segment (Unit JPY billion) (Unit JPY billion) FY2012 FY2013 FY2012 FY2013 Y/Y Change Y/Y Change Leasing/ Leasing/ 1
Slide 9: Leasing/Installment Sales Business
1. Financial Results for Fiscal Year Ended March 31, 2014 6) Leasing/Installment Sales Business (Consolidated, excluding small-scale leasing ) ▌Contracts Executed by Customers’ Sector ▌New Transactions by Customers’ Sector (excluding small-scale leasing) (Unit JPY billion) (excluding small-scale lea
Slide 10: Loan Business
1. Financial Results for Fiscal Year Ended March 31, 2014 7) Loan Business (Consolidated, excluding bulk factoring) ▌Contracts Executed by Form of Contract ▌Contracts Executed by Customers’ Sector (Unit JPY billion) (Unit JPY billion) FY2012 FY2013 FY2012 FY2013 Y/Y Change Y/Y Change Reimbursements,
Slide 11: RISA Business (Gross Profit)
1. Financial Results for Fiscal Year Ended March 31, 2014 8) RISA Business (Gross Profit) Growth of contribution to (Unit JPY billion) consolidated earnings FY2012 FY2013 Y/Y Change Investment and Revenues 9.3 22.7 143.5% Asset business -Operating income increased financing Gross profit 4.2 13.5 223
Slide 12: Consolidated Operating Assets Balances
1. Financial Results for Fiscal Year Ended March 31, 2014 9) Consolidated Operating Assets Balances (Consolidated, excluding small size leasing) (Unit JPY billion) 800 Operating Assets Balance RISA Business -Excluding small-scale leasing, 700 leasing/installment sales business grew by 635.9 Other Bu
Slide 13: Procurement Funds (Consolidated)
1. Financial Results for Fiscal Year Ended March 31, 2014 10) Procurement Funds (Consolidated) ▐ Funding Cost Ratio ▐ Interest-bearing Debts (Unit JPY billion) Funding cost ratio(%) FY2012 FY2013 1.2% = Cost of funding/ Average Composition Composition Y/Y Change Ratio Ratio balance of interest-beari
Slide 14: Credit Costs (Consolidated)
1. Financial Results for Fiscal Year Ended March 31, 2014 11) Credit Costs (Consolidated) -Credit costs deteriorated by JPY 700m Y/Y (of which, general reserve expenses deteriorated by JPY 200m). -Specific reserve expenses deteriorated by JPY 500m Y/Y on precautionary reserves booked relating to a f
Slide 15: Consolidated Earnings Forecasts
2. Business Plan for March 2015 Term(FY2014) 1) Consolidated Earnings Forecasts ▐ Consolidated Earning Forecasts (Unit JPY billion) Actual Forecast FY2013 FY2014 Y/Y Change Revenues 228.3 190.0 83.2% Operating Income 16.1 4.0 24.9% Ordinary Income 16.5 4.0 24.3% Net Income 5.0 2.0 40.1% Net Income p
Slide 16: Supplementary document for Consolidated Earnings Forecasts
2. Business Plan for March 2014 Term(FY2013) ▌Supplementary document for Consolidated Earnings Forecasts Minority interest in income (Unit JPY billion) Assets held for third parties included within income from funds 16.5 There is a 3-month gap between RISA’s fiscal year-end (December) and NEC Capita
Slide 17: Achievements in Fiscal 2013: Results in 4 Major Policy Areas
Achievements in Fiscal 2013 (Achievements and Issues) Results in 4 Major Policy Areas for Fiscal Term to March 2014 ▌Strengthen existing businesses lIn the public sector, our partnership with NEC grew even stronger, leading to sales growth. lAction on regional development through full-scale launch o
Slide 18: Achievements in Fiscal 2013: RISA and cost reductions
Achievements in Fiscal 2013(Achievements and Issues) ▌Further stabilize RISA business l The RISA business was able to contribute to group profit growth due to the sale of a large project in its fund business. Integration of management with NEC Capital Solutions was fast-tracked by its head office re
Slide 19: Achievements in Fiscal 2013: Issues for the future
Achievements in Fiscal 2013(Achievements and Issues) Issues for the future ▌Although we introduced various strategies to deal with greater competition after the quantum change in scale of fiscal easing policy, it will take some time for this to translate into higher profitability. To achieve higher
Slide 20: Disclaimer
The presentation materials are solely for the purpose of providing corporate information of NEC Capital Solutions Limited and not for soliciting purchase, sale, or investment in securities issued by the Company. We ask for the discretion of investors in making investment decisions. The presentation
Slide 21: NEC brings together and integrates technology and expertise
NEC brings together and integrates technology and expertise to create the ICT-enabled society of tomorrow. We collaborate closely with partners and customers around the world, orchestrating each project to ensure all its parts are fine-tuned to local needs. Every day, our innovative solutions for so
Slide 22: Page 22
Page 22 © NEC Capital Solutions Limited 2014