Mizuho Leasing Company, Limited · TSE:8425
Mizuho Leasing — H1 FY2023 Earnings Presentation
40 slides from Mizuho Leasing's earnings presentation, Nov 15, 2023
Slide 1: Investor Presentation for FY2023 H1
Investor Presentation for FY2023 H1 Apr. 2023－Sep. 2023 November 15, 2023 Mizuho Leasing Company, Limited
Slide 2: CEO Message
CEO Message We posted a record-high net income of 17.9 billion yen in the first half of FY2023. This was due to the growth in underlying profit, driven by an increase in operating assets, as well as the performance contribution of Rent Alpha Pvt. Ltd., resulting in steady growth. However, consider
Slide 3: Table of Contents
Table of Contents 1. Financial Results and Business Performance Overview 2. Medium-term Management Plan 2025 ●FY2023 first-half summary of the Medium-term Management Plan 2025 ⅰ. Transform and sophisticate business portfolio management ⅱ. Alliance and inorganic strategies ⅲ. Promote sustainability m
Slide 4: 1. Financial Results and Business Performance Overview
1. Financial Results and Business Performance Overview
Slide 5: Summary of First-Half Results for FY2023
Summary of First-Half Results for FY2023 Gross profit before funding costs significantly increased by ¥6.5 bn YoY due to the accumulation of operating assets. Gross profit increased by ¥3.1 bn YoY due to increased funding costs resulting from higher interest rates on foreign currencies. Operatin
Slide 6: Changes in Operating Assets and Profits at Each Income Level
Changes in Operating Assets and Profits at Each Income Level (¥bn) Operating assets Gross profit before funding costs Gross profit Ordinary income 2,743.9 42.6 2,434.0 36.1 2,324.3 34.6 31.5 29.7 26.0 25.7 22.0 13.8 As of As of As of H1 H1 H1 H1 H1 H1 H1 H1 H1 Sep.30 Sep.30 Sep.30 FY21 FY22 FY23 FY2
Slide 7: Factors behind Changes in Net income attributable to owners of the parent
Factors behind Changes in Net income attributable to owners of the parent Gross profit Operating Ordinary income income （¥bn） +3.1 +1.5 +3.7 15.6 17.9 (+2.3) (A) (B) (C) (D) Increased significantly YoY due to steady accumulation of operating assets and gain on cancellation of large-scale (A) Gross p
Slide 8: Quarterly Trends of Operating Assets and Profits and Losses
Quarterly Trends of Operating Assets and Profits and Losses Operating assets grew steadily. The growing trend of underlying gross profit before funding costs continued. Despite some quarterly fluctuations due to one-time factors, top-line profit is on a positive trend, absorbing increases in exp
Slide 9: Gross Profit before Funding Costs and Operating Assets by Business Area
Gross Profit before Funding Costs and Operating Assets by Business Area Domestic leasing businesses: Gross profit before funding costs increased YoY due in part to gain on cancellation of contracts recorded in Q1. As a result, the businesses remained profitable, while the balance of operating asse
Slide 10: Equity in Earnings and Losses (Non-operating Income and Expenses)
Equity in Earnings and Losses (Non−operating Income and Expenses) Both domestic and overseas associated companies performed well overall. – The performance of domestic associated companies was impacted by loss on valuation of investment securities at RICOH LEASING. – Net income of Aircastle improv
Slide 11: Funding
Funding Interest-bearing debt increased mainly through long-term borrowings and corporate bonds (issued twice in the H1, totaling ¥60 bn) against the backdrop of accumulated operating assets. Funding costs increased YoY due to impact of interest rate hikes in foreign currencies. However, excludi
Slide 12: 2. Medium-term Management Plan 2025
2. Medium-term Management Plan 2025
Slide 13: Overview of Medium-term Management Plan 2025
Overview of Medium-term Management Plan 2025 (Excerpts from the Medium-term Management Plan released on May 12, 2023) The current plan will be a three-year challenge of changing towards growth and Keywords Challenge Change Grow leaping further into the future Transform and sophisticate business port
Slide 14: Positioning of Medium-term Management Plan 2025
Positioning of Medium-term Management Plan 2025 (Excerpts from the Medium-term Management Plan released on May 12, 2023) We position this Plan as a period of aggressive investment of managerial resources into both business and management infrastructure, in order to make great strides towards the r
Slide 15: Financial and Non-financial Targets of Medium-term Management Plan 2025
Financial targets/Non-financial targets of “Medium-term Management Plan 2025” (Excerpts from the Medium-term Management Plan released on May 12, 2023) Financial Targets Net income ROA* ROE Focus on increasing total Improve ROA by actively FY2025 FY2025 accumulating operating FY2025 Aim for further i
Slide 16: FY2023 first-half summary of the Medium-term Management Plan 2025
FY2023 first-half summary of the Medium-term Management Plan 2025 ⅰ. Transform and sophisticate business portfolio management ⅱ. Alliance and inorganic strategies ⅲ. Promote sustainability management ⅳ. Strengthen and further sophisticate corporate systems to support growth
Slide 17: FY2023 First-Half Summary of the Medium-term Management Plan 2025
FY2023 First-Half Summary of the Medium-term Management Plan 2025 Deployed diverse businesses in the Core, Growth, and Frontier areas, steadily accumulated operating assets, and increased profits at each income level. With the aim of achieving a decarbonized and circular society, we proposed sol
Slide 18: Transform and sophisticate business portfolio management: Core
ⅰ. Transform and sophisticate business portfolio management Core H1 Results In the Core areas, high-quality operating assets, mainly real estate, increased, and underlying profit remained strong. Collaborative sales activities centered on value co-creation with clients were deepened through conc
Slide 19: Transform and sophisticate business portfolio management: Growth
ⅰ. Transform and sophisticate business portfolio management Growth H1 Results Growth areas: Global businesses led growth as the inorganic strategy progressed. Aircraft leasing also performed well. Environment and energy business: Engaged in the renewable energy business with the aim of achieving
Slide 20: Transform and sophisticate business portfolio management: Frontier
ⅰ. Transform and sophisticate business portfolio management Frontier H1 Results Invested in collaborative partner companies and established a circular economy platform structure in anticipation of future rapid development. Entered into a business partnership for the purpose of developing a subsc
Slide 21: Alliance and inorganic strategies
ⅱ. Alliance and inorganic strategies H1 Results Will push for initiatives that realize our business strategy through alliances with Mizuho Group, Marubeni Group, RICOH, RICOH LEASING, and other companies: – In July 2023, Mizuho Leasing and Marubeni concluded a definitive agreement to subscribe to
Slide 22: Promote sustainability management—Renewable power generation capacity
ⅲ. Promote sustainability management—Renewable power generation capacity H1 Results Achieved 500 MW in H1, steadily increasing the capacity to meet the final goal of 1 GW Now developing a foundation for utilizing renewable energy sources in focus areas. For this purpose, we have worked to add pr
Slide 23: Promote sustainability management—Realization of a circular economy
ⅲ. Promote sustainability management—Realization of a circular economy H1 Results Initiated networking with players in the arterial industry, such as materials and consumer goods manufacturers, through participation in industry-government-academia partnerships Invested in TRE HOLDINGS CORPORATIO
Slide 24: Promote sustainability management—Utilizing sustainable finance
ⅲ. Promote sustainability management—Utilizing sustainable finance H1 Results Developed a framework for financing in accordance with international principles (Sustainable Finance Framework) to raise funds for promoting solutions to social and environmental issues Published the Sustainable Financ
Slide 25: Strengthen and further sophisticate corporate systems
ⅳ. Strengthen and further sophisticate corporate systems H1 Results Strengthened and upgraded corporate systems to support the Medium-term Management Plan 2025 Reinforced IT infrastructure and accelerated DX by introducing the ”Subsidy Cloud” to support the promotion of GX investment (Case 1) an
Slide 26: 3. Earnings Forecasts and Shareholder Returns
3. Earnings Forcasts and Shareholder Returns
Slide 27: Progress Toward Earnings Forecasts
Progress Toward Earnings Forecasts Profits at each income level progressed as planned in the first half of FY2023. Have kept the earnings forecast announced on May 12, 2023 unchanged taking into account increasing uncertainties both in Japan and abroad, current interest rate and foreign exchange
Slide 28: Share Split and Abolition of Shareholder Benefit Plan
Share Split and Abolition of Shareholder Benefit Plan Share Split By reducing the amount per investment unit of our shares, we aim to improve market liquidity and create a more accessible environment for individual investors against the backdrop of the new NISA system. Record date: March 31, 2024
Slide 29: Dividend Forecast
Dividend Forecast Intend to pay dividends in line with our business performance while improving our earnings. Interim dividend is expected to be 83 yen per share as initially forecasted Raised the year-end dividend by 6 yen from the original forecast, taking into account that the full-year ear
Slide 30: CEO Message (repost)
CEO Message (repost) We posted a record-high net income of 17.9 billion yen in the first half of FY2023. This was due to the growth in underlying profit, driven by an increase in operating assets, as well as the performance contribution of Rent Alpha Pvt. Ltd., resulting in steady growth. However,
Slide 31: 4. Appendix
4. Appendix MIZUHO
Slide 32: Main News & Topics in FY2023 (1/2)
Main News & Topics in FY2023 (1/2) Date Contents Concluded one of the Largest Virtual PPAs in Japan with Kao Corporation Environment Apr. 28, 2023 and energy Switched power used at Kao’s Sumida Office to additional renewable energy sources Concluded a Business Agreement with Social Interior Inc. Jun
Slide 33: Main News & Topics in FY2023 (2/2)
Main News & Topics in FY2023 (2/2) Date Contents Participated in the Partnership of Industry, Government and Academia for Circular Economy Sep. 22, 2023 METI has established an organization dedicated to pioneering ambitious circular economy initiatives and plans Circular economy to study measures to
Slide 34: Consolidated B/S (Assets)
Consolidated B/S (Assets) YoY YoY % End−Mar. End−Mar. End−Mar. End−Mar. End−Sep. （¥bn） Change Change 2020 2021 2022 2023 (1) 2023 (2) (3) = (2)−(1) (3) / (1) Current assets 1,947.3 2,085.1 2,166.7 2,279.7 2,329.8 ＋50.1 ＋2% Cash and deposits 22.8 21.1 25.3 34.0 35.8 ＋1.8 ＋5% Investment in lease 1,082
Slide 35: Consolidated B/S (Liabilities and Equity)
Consolidated B/S (Liabilities and Equity) YoY YoY % End−Mar. End−Mar. End−Mar. End−Mar. End−Sep. （¥bn） Change Change 2020 2021 2022 2023 (1) 2023 (2) (3) = (2)−(1) (3) / (1) Current liabilities 1,314.1 1,492.9 1,548.4 1,573.5 1,674.5 ＋101.0 ＋6% Short−term borrowings 256.7 317.8 380.3 418.4 510.0 ＋91
Slide 36: Consolidated P/L
Consolidated P/L YoY YoY % FY19 FY20 FY21 FY22 FY23 （¥bn） Change Change H1 H1 H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Revenues 254.9 228.7 260.0 228.8 271.8 ＋43.0 ＋19% Gross profit before funding costs 28.9 28.4 29.7 36.1 42.6 ＋6.5 ＋18% Funding costs 5.0 4.2 3.7 4.6 8.0 ＋3.4 ＋73% Gross profit 24.0 24
Slide 37: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income YoY YoY % FY19 FY20 FY21 FY22 FY23 （¥bn） Change Change H1 H1 H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Net income 9.1 13.3 9.9 16.2 18.8 ＋2.6 ＋16% Unrealized gain on 1.6 −2.4 0.1 5.2 3.9 −1.3 −25% available−for−sale securities Deferred gain/loss on deriva
Slide 38: Gross Profit before Funding Costs by Business Area
Gross Profit before Funding Costs by Business Area YoY YoY % FY19 FY20 FY21 FY22 FY23 （¥bn） Change Change H1 H1 H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Revenues 254.9 228.7 260.0 228.8 271.8 ＋43.0 ＋19% Leasing and installment sales 246.0 221.7 251.4 216.5 256.7 ＋40.2 ＋19% Finance 8.4 7.2 8.7 12.4 15.
Slide 39: Newly Executed Contract Volume by Business Area
Newly Executed Contract Volume by Business Area Leasing and Installment Sales Segment YoY YoY % FY21 FY22 FY23 （¥bn） Change Change H1 H1(1) H1(2) (3) = (2)−(1) (3) / (1) Information and communications 56.5 49.0 40.4 −8.6 −17% Real estate 42.3 46.1 141.0 ＋94.9 ＋206% Industry and factory 37.2 29.4 53.
Slide 40: Contact
Contact Mizuho Leasing Company, Limited Corporate Communications Department Tel: +81-3-5253-6540 This document contains forecasts and other forward−looking statements that are based on information available at the time of preparation of this document and subject to certain risks and uncertainties, a
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