Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — FY2020 Earnings Presentation
44 slides from Mizuho Leasing's earnings presentation, May 18, 2021
Slide 1: Financial Results for FY2020 Presentation Materials
Financial Results for FY2020 Presentation Materials May 18, 2021 Mizuho Leasing Co., Ltd.
Slide 2: Table of Contents
Table of Contents Financial Results and Business ・・・ P.2 Performance Overview Earnings Forecasts and Dividends ・・・ P.11 Status of Sixth Mid-term Management ・・・ P.14 Plan Revision of Management Philosophy ・・・ P.28 and Efforts for Sustainability Appendix ・・・ P.34 1
Slide 3: Financial Results and Business Performance Overview
Financial Results and Business Performance Overview
Slide 4: Summary of Results for FY2020
Summary of Results for FY2020 Net income attributable to owners of the parent (¥bn) 21.8 Net income attributable to owners of 16.6 17.5 the parent amounted to ¥21.8bn, 13.6 hitting a record high for the 12.4 +24% 8th straight year. FY16 FY17 FY18 FY19 FY20 FY2020 forecast and results (¥bn) % Full-ye
Slide 5: Summary of Results for FY2020: Dividends and Operating Assets
Summary of Results for FY2020 Long-term dividend trend (¥) Year-end dividend Interim dividend 82 92 (planned) 78 Annual dividend will be ¥92 80 70 64 60 (¥10 increase y-o-y) 48 50 54 56 40 42 52 (planned) 38 34 Plan to raise annual dividend 40 24 26 28 28 30 for the 19th straight year 30 30 32 38 40
Slide 6: Factors behind change in net income attributable to owners of the parent
Factors behind change in net income attributable to owners of the parent +4.2 21.8 ¥bn (8) -0.6 +4.6 +1.7 +1.2 17.5 (6) (7) (4) (5) (1) (3) -0.7 -1.7 -0.5 (2) -2.6 Mainly due to -1.3 foreign-currency factors Factors specific to Lease Funding costs Selling, Extraordinary FY20 Total other general and
Slide 7: Overview of Financial Results
Overview of Financial Results % (¥bn) FY18 FY19 FY20 Change Change Proceeds from sales of properties Revenues 384.9 539.2 497.9 -41.3 -8% upon completion of real estate-related bridge scheme projects decreased Gross profit before write-offs and funding costs 52.6 60.3 59.3 -1.0 -2% Funding costs 8.5
Slide 8: Business Performance Overview
Business Performance Overview Contract execution volume Operating assets Contract execution volume increased 6% y-o-y. Operating assets increased 11% from the end of the － Leasing and installment sales generally decreased due to previous fiscal year. the impact of COVID-19, but the sales of informat
Slide 9: Contract Execution Volume / Leasing and Installment Sales
Contract Execution Volume / Leasing and Installment Sales Contract execution volume by equipment type % (¥bn) FY18 FY19 FY20 Change Change Captured capital investment needs Information and mainly of telecommunications 93.4 152.9 176.1 +23.2 +15% communications carriers Real estate 126.8 180.6 154.3
Slide 10: Contract Execution Volume / Financing
Contract Execution Volume / Financing Contract execution volume % (¥bn) FY18 FY19 FY20 Change Change Commercial distribution 856.3 492.3 627.0 +134.7 +27% finance / loan, etc. Mizuho Group synergies led to increase in mezzanine loans and Real estate 97.0 57.8 105.2 +47.4 +82% bridge schemes for logi
Slide 11: Funding
Funding Actively utilized direct funding such as issuance of bonds and CPs to ensure the stability of funding and control costs. Funding costs and funding costs ratio both decreased mainly due to lower foreign currency funding interest rates. Interest-bearing debt Funding costs (ratio) Borrowing
Slide 12: Earnings Forecasts and Dividends
Earnings Forecasts and Dividends
Slide 13: Earnings Forecasts for FY2021
Earnings Forecasts for FY2021 Although the economic environment is expected to begin a gradual recovery, attention will still need to be paid to the impact of COVID-19 during FY2021 as there remains a great deal of uncertainty caused, for example, by the emergence of new variants and issues with v
Slide 14: Dividends
Dividends Plan for a year-end dividend of ¥52/share for FY2020, which is ¥8 higher than the ¥44 initially forecast. Based on FY2021 earnings forecasts, plan to raise annual dividend for the 20th straight year to ¥110/share in FY2021, in consideration of balance between shareholder returns such a
Slide 15: Status of Sixth Mid-term Management Plan
Status of Sixth Mid-term Management Plan
Slide 16: 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 17: Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan
Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management Plan (FY 2019-2023) Net income attributable ¥30.0 Balance in the Triple Dividend Aim for to owners of the parent billion global area compared with that at the end of March 2019 payout ratio 25% or more (¥bn) 30.0 Triple comp
Slide 18: Cooperation with Alliance Partners: Mizuho Financial Group
Cooperation with Alliance Partners: Mizuho Financial Group In FY2020, contract amount* through cooperation increased approximately ¥80.0 billion y-o-y, and profitability also climbed. *Management accounting basis －Cooperation expanded in areas such as real estate, communications infrastructure, an
Slide 19: Cooperation with Alliance Partners
Cooperation with Alliance Partners Cooperation with the Marubeni Group Cooperation with Ricoh and Ricoh Leasing Balance in the global area increased ¥36.6 Promote business that takes advantage of Ricoh billion through cooperation with Marubeni Leasing’s vendor finance expertise thanks to busines
Slide 20: Business Strategy Overview
Business Strategy Overview We have classified our business strategies into four categories from the standpoints of expansion of business areas (vertical axis) and market growth potential and initiatives to address social issues (horizontal axis). Our policy will be to maintain zone A as the founda
Slide 21: Status of Focus Area: Real Estate
Status of Focus Area: Real Estate Balances increased for both short-term (bridge) and long-term (financing etc., land leasing / building leasing) assets, and the total balance rose by approximately ¥120.0 billion y-o-y. By asset type, logistics facilities, which society has a high level of need
Slide 22: Status of Focus Area: Environment and Energy
Status of Focus Area: Environment and Energy Offered a wide range of solutions for a myriad of power source types in renewable energy area and balances increased. Power source types: Solar power, wind power, biomass, etc. Solutions: Business management, equity investment, mezzanine loans, leas
Slide 23: Status of Focus Area: Medical and Healthcare
Status of Focus Area: Medical and Healthcare Shift our attention to initiatives that prioritize profitability, with medical institutions cutting back on capital expenditures. Service business: Subscription-based services for medical equipment offered in collaboration with manufacturers, etc. R
Slide 24: Status of Focus Area: Global
Status of Focus Area: Global Balances increased through cooperation with Marubeni such as investment in overseas infrastructure operations. Expanded our business base by investing in a Vietnamese leasing company and having our Singapore subsidiary commence operations. Pursue business expansion
Slide 25: Status of Focus Area: Aircraft
Status of Focus Area: Aircraft Efforts in aircraft area curbed, in view of market environment affected by COVID-19. Carry out initiatives that take mutual advantage of expertise for leasing, loans and set-up of JOLCOs while carefully selecting deals when the market takes an upward turn. Balances
Slide 26: Status of Aircastle Limited
Status of Aircastle Limited (Source: Data published by Aircastle on April 21, 2021) Aircastle Profile Aircraft Portfolio (As of end of February 2021) (As of end of February 2021) Ratio of each type of aircraft Exposure by region* Marubeni: 75%, Investment ratio Asia Europe Mizuho Leasing: 25% Narrow
Slide 27: Reinforcement of Efforts in Service Business
Reinforcement of Efforts in Service Business Centralize service business functions such as vendor business and subscription services in the “DX Business Department” and focuses on the promotion of service business. With customer needs shifting from “ownership” of equipment & properties “use” of
Slide 28: Reinforcement of Management Base: Business Platform Transformation
Reinforcement of Management Base: Business Platform Transformation Promoted measures to resolve issues identified on both the business promotion side, with the aim of enhancing the efficiency and sophistication of operations across the entire company. Endeavor to build a more resilient and produ
Slide 29: Revision of Management Philosophy and Initiatives for Sustainability
Revision of Management Philosophy and Initiatives for Sustainability
Slide 30: Background to Revision of Management Philosophy
Background to Revision of Management Philosophy Since we established our previous management philosophy in 2007, the environment that surrounds the Group has changed dramatically. Previous management philosophy (established in 2007) Cooperation Corporate Philosophy with Alliance We aim to be a Gro
Slide 31: New Management Philosophy - Mission, Vision, Values
New Management Philosophy - Mission, Vision, Values - We have once again turned out attention to the mission and ideal vision of Mizuho Leasing and revised our existing management philosophy in May 2021. With the new Mission, Vision, Values, we will aim to take initiatives in solving a diverse r
Slide 32: Initiatives for Sustainability
Initiatives for Sustainability To create an abundant future and contribute to the realization of a sustainable society, we identified six material issues (materiality) that we should place priority on tackling from the perspectives of opportunities and risks for society as a whole on the one hand
Slide 33: Initiatives for Sustainability
Initiatives for Sustainability Promote efforts to address the identified materiality by incorporating such efforts into our business strategy. Co-create a circular society so as to contribute to realizing a sustainable society with tireless challenges and new ideas that go beyond finance. Materi
Slide 34: Examples of Initiatives for Sustainability
Examples of Initiatives for Sustainability Contributing to a decarbonized society Contributing to a healthy and prosperous lifestyle Provision of various finance solutions for solar power, wind Real-estate leases and finance in medical and healthcare areas power, biomass, and other forms of rene
Slide 35: Appendix
Appendix
Slide 36: Company Profile
Company Profile 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) Capital Stock 26,088 million yen (Outstanding shares
Slide 37: Stock Status (As of March 31, 2021)
Stock Status (As of March 31, 2021) Number of shares issued 49,004,000 Major Shareholders Number of shareholders 50,510 Shares Holding Shareholders Held Distribution of shareholders (shareholding ratio) (1,000 shares) Ratio Individuals Mizuho Bank, Ltd. 11,283 23.03% and others 12.9% The Dai
Slide 38: 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. 7 outside directors), 4 auditors (incl. 4 outside auditors) ― Appoint
Slide 39: Consolidated Balance Sheet (Assets)
Consolidated Balance Sheet (Assets) End of Mar End of Mar End of Mar End of Mar End of Mar Change % Change (¥bn) 2017 2018 2019 2020 (A) 2021 (B) (B) – (A) (B) / (A) Current assets 1,564.7 1,602.4 1,866.6 1,947.3 2,085.1 +137.8 +7.1% Cash and deposits 42.3 30.3 25.9 22.8 21.1 -1.7 -7.6% Investment i
Slide 40: 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 Mar Change % Change (¥bn) 2017 2018 2019 2020 (A) 2021 (B) (B) – (A) (B) / (A) Current liabilities 1,045.8 1,082.1 1,294.2 1,314.1 1,492.9 +178.8 +13.6% Short-term borrowings 312.7 270.7 302.2 256.
Slide 41: Consolidated Statement of Income
Consolidated Statement of Income FY19 FY20 Change % Change (¥bn) FY16 FY17 FY18 (A) (B) (B) – (A) (B) / (A) Revenues 429.4 399.7 384.9 539.2 497.9 -41.3 -7.7% Gross profit before write-offs and 44.9 45.2 52.6 60.3 59.3 -1.0 -1.5% funding costs Funding costs 5.7 7.0 8.5 9.7 8.0 -1.7 -18.1% Gross prof
Slide 42: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income FY19 FY20 Change % Change (¥bn) FY16 FY17 FY18 (A) (B) (B) – (A) (B) / (A) Net income 12.6 14.2 17.2 18.1 22.5 +4.4 +24.3% Unrealized gain on available-for- 0.1 1.0 -2.3 0.7 -1.0 -1.7 - sale securities Deferred gain/loss on derivatives 0.2 0.1 -0.6 -0.6
Slide 43: Gross Profit Before Write-offs and Funding Costs by Segment
Gross Profit Before Write-offs and Funding Costs by Segment FY19 FY20 Change % Change (¥bn) FY16 FY17 FY18 (A) (B) (B) – (A) (B) / (A) Revenues 429.4 399.7 384.9 539.2 497.9 -41.3 -7.7% Leasing and installment sales 417.0 386.4 366.4 512.1 482.9 -29.2 -5.7% Finance 11.7 12.8 17.4 19.6 15.4 -4.2 -21.
Slide 44: Connect needs to create the future
Connect needs to create the future 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 t
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