Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — IBJ Leasing — 2Q FY2011 Earnings Presentation
33 slides from Mizuho Leasing's earnings presentation, Nov 4, 2011
Slide 1: Financial Results for 2Q FY2011 Presentation Materials
Financial Results for 2Q FY2011 Presentation Materials November 4, 2011 IBJ Leasing Co., Ltd. (TSE: 8425) Inquiries: Toshiyuki Nishii, Investor Relations Division ℡:+81-3-5253-6540 Fax:+81-3-5253-6539 This document contains forecasts and other forward-looking statements that are based on information
Slide 2: Contents
Contents ◆Highlights of 2Q FY2011 ・・・・・・・・・・・ 2 Ⅰ．Review of 2Q FY2011 Results ・・・・・・・・・ 3 rd Ⅱ．Progress on 3 Medium-term Management Plan ・・12 Ⅲ．FY2011 Earnings Forecast ・・・・・・・・・・22 (Appendix) ・・・・・・・・・・・・・・・・・・24 1
Slide 3: Highlights of 2Q FY2011
◆Highlights of 2Q FY2011 <Financial Results> Ordinary income and net income rose, as lower funding and credit costs offset decline in gross profit <M&A> Acquired corporate financial services business of Toshiba Finance in order to bolster business foundation Earnings trends (semi-annual comparisons)
Slide 4: Review of 2Q FY2011 Results
Ⅰ．Review of 2Q FY2011 Results 3
Slide 5: Operating Performance
1. Operating Performance (1) Overview (¥bn) 1st Half 1st Half 1st Half Change % change ○Operating revenues declined ¥1.2bn YoY FY09 FY10 ① FY11 ② ②－① ・ Decline in gross profit before write-offs and Operating revenues (a) 19.8 19.4 18.2 -1.2 -6.5% funding costs Gross profit before write-offs and 18.7
Slide 6: Gross profit before write-offs and funding costs
(2) Gross profit before write-offs and funding costs Gross profit before write-offs and funding cost Gross profit before write-offs and funding costs ○ Equipment financing income declined due to lower (¥bn) operating assets and return Equip.financing Financing Other Return 19.5 20 18.9 18.9 ○ Decrea
Slide 7: Funding costs
(3) Funding costs Funding overview ○Reduced indirect finance amid decline in operating assets; Continued to utilize CP issuance to raise funds in light of favorable market conditions Funding costs ○Lowered funding costs (¥0.6bn YoY decline) by reducing interest-bearing debt and relying more on CP is
Slide 8: Credit costs
(4) Credit costs ○Newly booked write-offs/provisions declined (¥bn) Newly booked write-offs/provisions substantially YoY due to lower bankruptcies 8 ・ Earthquake-related provisions less than ¥100mn 6 ○Net credit costs improved to negative (surplus) ¥0.4bn 4.2 due to reversal of past years’ provision
Slide 9: Financial Position
2. Financial Position (1) Overview (¥bn) Mar. 31, Mar. 31, Mar. 31, Sep. 30, Consolidated Change 2009 2010 2011 2011 B/S ②－① ① ② Assets Assets ○Operating assets declined ¥14.5bn Cash and cash versus March 2011 to ¥914.1bn despite 28.0 18.5 37.7 35.7 -2.0 equivalents efforts to increase new contracts
Slide 10: Operating assets
(2) Operating assets ①Equipment Financing ②Financing ○Volume of executed contracts on par YoY at ¥102.2bn ○Volume of executed contracts level YoY at ¥64.5bn (overall leasing industry transaction volume declined ・ Captured wide-ranging customer needs, mainly for 4.2% YoY) large companies ○Equipment f
Slide 11: Credit risk management
(3) Credit risk management 26％ Doubtful Operating Receivables and Allowance for Doubtful Credit risk management policy Receivables (¥bn) ○Conducted thorough credit risk management by Doubtful operating receivables meticulously verifying, for each individual project, Receivables with high collectabil
Slide 12: ALM
(4) ALM April-September 2011 operating environment ○Long-term rates declined and yield curve flattened Market rate yield curves →Kept matching ratio unchanged as short-term 0.8% rates remained steadily low 10/9/30 →Conducted dynamic operations in response to 11/3/31 11/6/30 11/3 interest rate change
Slide 13: Progress on 3rd Medium-term Management Plan
Ⅱ．Progress on 3rd Medium-term Management Plan 12
Slide 14: 3rd Medium-term Management Plan
1. 3rd Medium-term Management Plan nd 2 MT Management Plan rd rd 3 Medium-term Management Plan ~ Establishment of 3 Plan nd 2 MT Management Plan 5 Priority Initiatives Reassert IBJ Leasing Group’s strengths and confirm issues in (1) Capitalize on customer base and response to significantly changed s
Slide 15: Priority Initiatives
2. Priority Initiatives (1) Capitalize on customer base and solutions capabilities ○Maintain level of executed contract volume amid severe business environment ・ Executed contract volume in equipment financing and financing areas on par YoY ○Service customers’ diversifying finance needs by leveragin
Slide 16: Breakdown of equipment financing
Breakdown of equipment financing Executed contract volume by equipment type (¥bn) Industrial machinery and machine tools ○Semiconductor- and auto-related capex slumped as 1st Half 1st Half Change FY10 FY11 companies postponed spending after earthquake Industrial machinery 23.4 15.0 -8.4 Construction
Slide 17: Expand specialty finance businesses
(2) Expand specialty finance businesses ①Real estate finance ②Vessel finance <Project basis> <Current business environment> ○Real estate market stalled since earthquake ○Newbuild orders falling due to yen appreciation ・ Balance level due to decline in new projects <IBJ Leasing business> <Corporate r
Slide 18: Step up overseas operations
(3) Step up overseas operations ○Capture Japanese companies’ overseas capex financing demand with coordinated sales activities in Japan and overseas Asian subsidiaries < China > ・ Favorable trends in construction machinery equipment leasing, helped by alliance with Japanese construction machinery ma
Slide 19: Cultivate new business domains
(4) Cultivate new business domains Healthcare/Welfare ○Expand customer base through Siemens Group sales network ・ Established customer-dedicated sales organization (“SIE-LEASE Division”) to expand vendor finance ○Expand sales nationwide through coordinated approach between Medical & Welfare Departme
Slide 20: Utilize M&As: Acquisition of Toshiba Finance's Corporate Financial Services Business
(5) Utilize M&As Acquisition of Toshiba Finance’s Corporate Financial Services Business Overview: ・ Acquire successor company after Corporate Financial Services Business split off ― IBJ Leasing: 90%; Toshiba: 10% (Acquisition price: ¥13.0bn) ― Plan to change name to IBJL Toshiba Lease ・ Also acquire
Slide 21: Business development following acquisition
Business development following acquisition ○Utilize wide customer base and business domains of Toshiba Group to expand IBJ Leasing Group’s business foundation ①Toshiba Group capital investment financing ②Factoring service for business partners ③Vendor finance for Toshiba products →Expand corporate f
Slide 22: IBJ Leasing Group formation after acquisition
IBJ Leasing Group formation after acquisition ○Consolidated operating assets anticipated to grow rapidly to the order of ¥1.3tr ・ Enhanced operating assets in equipment financing business, mainly for corporate leasing ○Business domains and customer base will expand through this acquisition Consolida
Slide 23: FY2011 Earnings Forecast
Ⅲ．FY2011 Earnings Forecast 22
Slide 24: FY2011 Earnings Forecast
FY2011 Earnings Forecast Business environment ○Economic recovery will take time amid sluggish progress towards full-fledged disaster recovery ・ Japan: Power shortages, yen appreciation, postponement of capital investment ・ Overseas: Fiscal problems in US/Europe, slower growth in China, Asia, newly e
Slide 25: Appendix
BJ 1B) LEASING CO.,LTD. 24
Slide 26: Company Overview
(1) Company Overview Company name: IBJ Leasing Company, Limited Address: 1-2-6 Toranomon, Minato-ku, Tokyo 105-0001 Business description: Multimodal Financial Services Representative: Tsutomu Abe, President and CEO Establishment: December 1, 1969 Listing: Tokyo Stock Exchange, 1st Section (Code: 842
Slide 27: Shareholders
○20 largest shareholders (2) Shareholders Shareholder Shares Ratio (as of September 30, 2011) held (thousand) （％） The Dai-ichi Life Insurance Company, Limited 2,930 7.95 ○Outstanding shares: 36,849 thousand Mizuho Trust & Banking (Nissan Motor. Co., Ltd. 1,750 4.74 Retirement Benefit Trust Account)
Slide 28: Subsidiaries
Percentages in parentheses are IBJ Leasing Group IBJ Leasing’s ownership interest Building a consolidated group of nonfinancial & financial subsidiaries: Leveraging customer bases to expand market footprint Dai-ichi Leasing （90%） Nissan Leasing （100%） Universal Leasing （90%） Subsidiaries Main custom
Slide 29: Consolidated B/S (assets)
(4)-1 Consolidated B/S (assets) ( ¥bn) 3/31/2008 3/31/2009 3/31/2010 3/31/2011 9/30/2011 Change % change ① ② ②－① ②/① Current assets 440.1 989.7 904.9 947.9 928.1 -19.8 -2.1% Cash, cash equivalents 16.7 28.0 18.5 37.7 35.7 -2.0 -5.3% Lease receivables ― 5,5.4 522.3 511.7 487.4 -24.3 -4.7% Installment
Slide 30: Consolidated B/S (Liabilities, Equity)
(4)-2 Consolidated B/S (Liabilities, Equity) (¥bn) 3/31/2008 3/31/2009 3/31/2010 3/31/2011 9/30/2011 Change % change ① ② ②－① ②/① Current liabilities 806.8 649.4 701.6 705.9 674.6 -31.3 -4.4% Short-term borrowings 102.3 126.2 92.6 137.5 124.0 -13.5 -9.8% Current portion of long-term debt 211.7 160.1
Slide 31: Consolidated statements of income
(5) Consolidated statements of income (¥bn) 07/4-9 08/4-9 09/4-9 10/4-9 11/4-9 Change % change ① ② ②－① ②/① Revenues 167.4 150.8 134.2 128.6 128.9 ＋0.3 ＋0.2% Gross profit before funding costs 18.4 19.5 18.7 18.9 17.4 -1.5 -8.0% Funding costs 4.6 4.6 4.0 3.0 2.4 -0.6 -20.7% Gross profit 13.9 14.9 14.7
Slide 32: Consolidated statement of comprehensive income
(6) Consolidated statement of comprehensive income (¥bn) 10/4-9 11/4-9 Change % change Net income before minority interests 4.9 5.4 ＋0.5 ＋9.9% Unrealized gain on available-for-sale -0.6 -0.2 ＋0.4 ＋65.9% securities Deferred loss on derivatives under -0.1 -0 ＋0.1 ＋76.0% hedge accounting Foreign curren
Slide 33: Gross profit before write-offs and funding costs by segment (first half)
(7) Gross profit before write-offs and funding costs by segment (first half) (¥bn) 07/4-9 08/4-9 09/4-9 10/4-9 11/4-9 Change % change ① ② ②－① ②/① Revenues 167.4 150.8 134.2 128.6 128.9 ＋0.3 ＋0.2% Leasing 154.6 137.7 124.5 118.0 119.2 ＋1.2 ＋1.1% Installment sales 8.9 8.8 6.1 6.8 5.7 -1.1 -16.2% Loans