Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — H1 FY2022 Earnings Presentation
47 slides from Fuyo General Lease's earnings presentation, Nov 10, 2022
Slide 1: Financial Results Briefing for the 1st half of FY2022
Financial Results Briefing for the 1st half of FY2022 IR Presentation Fuyo General Lease Co., Ltd. Securities code: 8424 Nov 10, 2022
Slide 2: Agenda and forward-looking statements
１．Overview of consolidated operating results and business activities P3 ２．Medium-term Management Plan 「Fuyo Shared Value 2026」 P11 ３．Earnings forecast and dividend policy P35 ４．Appendix P38 Earnings forecasts and other forward-looking statements provided in this material are based on the information
Slide 3: 1H FY2022 Overview of consolidated operating results
１H FY2022 Overview of consolidated operating results 3
Slide 4: Fiscal 2022 1H consolidated operating results
Overview of consolidated operating results and business activities 1 Fiscal 2022 1H consolidated operating results ⚫ Balanced profit growth was achieved in business domains positioned as growth drivers, such as energy and environment, and mobility. ⚫ Profit at each level reached a record high in 1H
Slide 5: Profit before interest expenses; ordinary profit and profit
Overview of consolidated operating results and business activities ２ Profit before interest expenses ３ Ordinary profit and profit ⚫ Profits in Lease continued to increase mainly owing to ⚫ In addition to the steady growth in profit before interest growth in aircraft and real estate. expenses, the sh
Slide 6: Factor causing the increase in ordinary profit
Overview of consolidated operating results and business activities ４ Factor causing the increase in ordinary profit (¥100 million) -26 51 15 -1 -3 311 275 Ordinary Ordinary profit profit 1 2 3 4 Profit before Personnel/equip- Interest expenses Credit-related Non-operating 1H FY2021 1H FY2022 interes
Slide 7: Changes in funding
Overview of consolidated operating results and business activities ５ Changes in funding ⚫ No significant change in the levels of interest expenses and funding costs. Limited impact of a rise in market interest rates overseas on funding costs. ⚫ Actively pursuing ESG finance initiatives, becoming the
Slide 8: Changes in costs; net assets and shareholders' equity ratio
決算概況 Overview of consolidated operating results and business activities ６ Changes in costs 7 Net assets and the shareholders’ equity ratio ⚫ Stable profit growth enabled the steady ⚫ The increase in personnel expenses is mainly due accumulation of net assets. to the consolidation of WorkVision Corpo
Slide 9: Newly executed contract volume
Overview of consolidated operating results and business activities ８ Newly executed contract volume ⚫ An increase in equity investment and real estate financing which are aimed at participation in the renewable energy business in Energy & Environment led to growth in the newly executed contract volu
Slide 10: Operating assets, ROA
Overview of consolidated operating results and business activities 9 Operating assets, ROA ⚫ Operating assets increased in Operating leases and Financing driven by Energy & Environment, and Real Estate. ⚫ ROA improved steadily due to advanced conversion to a higher profitable portfolio and expansion
Slide 11: Medium-term Management Plan Fuyo Shared Value 2026
Medium-term Management Plan Fuyo Shared Value 2026 11
Slide 12: Overview of Fuyo Shared Value 2026
New Medium-term Management Plan Overview of Fuyo Shared Value 2026 Pursuing sustainable growth as a corporate group by practicing CSV (Creating Shared Value) to resolve social issues while at the same time delivering economic value Vision for New Fuyo Shared Value 2026 Medium-term Achieving sustaina
Slide 13: Management Goals: Financial/Non-financial Goals
Management Goals Financial/Non-financial Goals • Pursue sustainable profit growth by further improving profitability and sustaining the growth we have achieved to date. • Enhance corporate value by realizing a decarbonized society and resolving other social issues. Management Goals Financial goals N
Slide 14: Non-financial Goals
*1 Diversity and inclusion Management Goals Non-financial Goals *2 Work-life balance Other related goals are set, including the percentage of male employees taking paternal leave. Results for Target value Item Remarks 1H FY2022 for FY2026 100,000 500,000 Results show the volume of contribution to Co
Slide 15: Business Domain-Specific Results and Topics
Business Domain-Specific Results and Topics 15
Slide 16: Positioning of Business Domains: Zone Management
Positioning of Business Domains Zone Management • In addition to helping our customers resolve their management issues, we contribute to creating value through projects such as jointly run businesses with our partners. • Invest our management resources in the Transformation Zone in our efforts to al
Slide 17: Business Domain-Specific Results
General Business Domain-Specific Results 1H FY2021 1H FY2022 YoY change Ordinary Operating ＊1 Ordinary Operating Ordinary Operating (¥100 million) ROA ROA ROA profit assets profit assets profit assets Rising Transformation 22 2.6% 1,641 26 3.1% 1,608 3 0.6pt -33 (Mobility) Accelerating 41 - 2,282 46
Slide 18: Business Domain-Specific Results (Comments)
General Business Domain-Specific Results (Comments) Generally favorable start as the first year of the New Medium- term Management Plan • Contribution from gain on sales of vehicles due to the soaring used car market as well as a growth in rental income overseas Mobility • The balance of operating a
Slide 19: Rising Transformation Mobility (1)
Rising Transformation Mobility (1) Achieve sustainable profit growth while taking a continued approach to new business domains ■ Ordinary profit and ROA for the Q2: Results (¥100 million) mobility business ⚫ The soaring used car market and strong rental income of 26 overseas affiliates made a contri
Slide 20: Mobility (2) Autonomous Driving Proof-of-concept Tests/GREEN FORK
Mobility (2) Autonomous Driving Proof-of-concept Rising Transformation Tests/“GREEN FORK” Expansion of the business domain through collaboration with partners Vehicles area Logistics area Purchase of autonomous vehicles / Forklift “GREEN FORK” participation in proof-of-concept tests ◼ On the premise
Slide 21: Energy & Environment (1)
Accelerating Transformation Energy & Environment (1) Developing the renewable energy business on a global basis ■ Ordinary profit and ROA for the Energy & Environment business Q2: Results (¥100 million) 18 ⚫ The renewable energy business grew in Japan and overseas 14 ⚫ The renewable energy power gen
Slide 22: Energy & Environment (2) Overseas Renewable Energy Business
Energy & Environment (2) Accelerating Transformation Overseas Renewable Energy Business Making active investments in Europe in collaboration with global players U.K./offshore wind power generation Europe/renewable energy fund (such as project solar power, wind power and hydro power) ◼ Invested in an
Slide 23: BPO/ICT (1)
Accelerating Transformation BPO/ICT (1) Growing profit by acquiring projects from both directions of BPO and ICT ■ Ordinary profit and ROA for the BPO/ICT business Q2: Results The ROA figures shown here are based on the results from the ICT business. ⚫ The business expanded steadily by meeting growi
Slide 24: BPO/ICT (2) Expansion of the Service Domain
BPO/ICT (2) Accelerating Transformation Expansion of the Service Domain Acquisition of “new business efficiency improving solutions” that support customers’ DX Top-level record in Japan in the video production/distribution business for BtoB companies Became our consolidated Human CentriX Co.,Ltd. su
Slide 25: BPO/ICT (3) Collaboration with Partners
Accelerating Transformation BPO/ICT (3) Collaboration with Partners Expanding approach targets in collaboration with partners Business alliance in the BPO service Business alliance in the area of business area outsourcing for IT operations (FGL Techno-Solutions Co., Ltd) (OKI Crosstech Co.,Ltd) Wide
Slide 26: Medical & Social Welfare (1)
Accelerating Transformation Medical & Social Welfare (1) Advancing group-based business development to expand the business domain ■Ordinary profit and ROA for the Medical & Social Welfare business Q2: Results (¥100 million) ⚫ The accumulation of medical/nursing fee receivable factoring 11 10 operati
Slide 27: Medical & Social Welfare (2) Fuyo Lease Platform
Accelerating Transformation Medical & Social Welfare (2) Fuyo Lease Platform Advancing group-based business development to expand the business domain Customers with corporate corporate Clinics (medical, dental), Fuyo Mediwel Support Large- and medium-sized restructuring, business succession, nursing
Slide 28: Growing Performance: Real Estate
Growing Performance Real Estate Steady growth in earnings, covering the EXIT of large-lease project during the period. Q2: Results ■ Ordinary profit and ROA for the Real Estate business ⚫ The operating asset balance remained at the same level as at the end of the previous (¥100 million) period for t
Slide 29: Growing Performance: Aircraft
Growing Performance Aircraft Performance recovered with the progress in the breakaway from the effects of COVID-19 ■ Ordinary profit and ROA for the Q2: Results Aircraft business 24 ⚫ Collections of overdue lease fees from some airlines have (¥100 million) progressed and bad debt-related expenses ha
Slide 30: Towards Sustainable Value Creation
Towards Sustainable Value Creation 30
Slide 31: Investment in Human Resources
Investment in human capital Investment in Human Resources To develop high-value-added human resources capable of supporting sustainable growth, focused on the enhancement of the program for the second tier portion (languages/DX/finance, etc.), which is skills required in all business domains in the
Slide 32: (Appendix) Investment in Human Resources
(Appendix) Investment in Human Resources Investment in human capital (Establishment of the Fuyo Shared Value Creation Center) Establish the “Fuyo Shared Value Creation Center,” an ecosystem for growth and learning, while at the same time promoting an unprecedented and aggressive investment in human
Slide 33: Progress in DX Strategies
DX Strategy Progress in DX Strategies Address social issues by effectively utilizing digital technology and taking advantage of the business bases, networks, data, and knowledge held by the Fuyo Lease Group. Became a “DX-certified” business operator Topics① provided by the Ministry of Economy, Trade
Slide 34: Non-financial Goals and Business Domains
Non-financial Goals and Business Domains (Appendix)Non-financial Goals and Business Domains Realizing a prosperous society and contributing to sustainable growth Expanding business domains and promoting further evolution in our relentless attempt to create new value Anticipating social changes and t
Slide 35: Earnings forecast and dividend policy
Earnings forecast and dividend policy 35
Slide 36: FY2022 consolidated earnings forecast
Earnings forecast and dividend forecast 1 FY2022 consolidated earnings forecast 1H FY2022 FY2022 (¥100 million) results forecast Net sales 3,561 7,000 Operating profit 270 515 Ordinary profit 311 560 Profit attributable to owners of parent 203 360 Basic earnings per share ¥677.63 ¥1,202.97 Copyright
Slide 37: Dividend policy
Earnings forecast and dividend policy 2 Dividend policy 1H FY2022 results ¥158 as initially forecast FY2022 forecast Annual dividend payment forecast unchanged from initial forecast (¥316) Aiming to achieve a dividend payout ratio of Changes in dividends and dividend payout ratio 30% or more by FY20
Slide 38: Appendix
Appendix 38
Slide 39: Key topics (1)
Appendix 1 Key topics (1) Signed a lease contract for freighters (dedicated cargo flights) with Yamato Transport Mobility Aircraft - Renovated passenger aircraft into freighters for leasing - Made investments through “Fuyo US Fund, LLC” separate account for real estate Real Estate development invest
Slide 40: Key topics (2)
Appendix 1 Key topics (2) Real Estate Invested in an ESG-conscious real estate private placement fund Open recruitment for business operators for the “project for redevelopment of Kobe City Real Estate Hall Building No. 2” and Selected as a developer Entered into a business agreement with IGUAZU Cor
Slide 41: Summary of consolidated operating results
参考資料 Appendix ２ Summary of consolidated operating results *1 Excluding interest expenses *2 Gross profit before interest expenses 1H 1H 1H 1H 1H YoY (¥100 million) FY2018 FY2019 FY2020 FY2021 FY2022 Change Net sales 2,957 3,445 3,574 2,854 3,561 706 Cost of sales＊1 2,595 3,029 3,114 2,373 3,028 655
Slide 42: Segment results (consolidated)
参考資料 Appendix ３ Segment results（consolidated) ＊1 Gross profit before interest expenses Leases Installment sales Leases and installment sales Total 1H 1H YoY YoY 1H 1H YoY YoY 1H 1H YoY YoY (¥100 million) Change Change Change Change Change Change FY2021 FY2022 (amount) (%) FY2021 FY2022 (amount) (%)
Slide 43: Operating assets
参考資料 Appendix ４ Operating assets YoY (¥100 million) 1H YoY change FY2018 FY2019 FY2020 FY2021 Change FY2022 (%) (amount) Leases 15,648 16,136 17,133 16,916 16,462 -454 -2.7% Finance leases [10,835] [11,068] [10,808] [10,198] [8,981] [-1,217] [-11.9%] Operating leases [4,813] [5,068] [6,325] [6,718]
Slide 44: Newly executed Contract Volume
Appendix ５ Newly executed Contract Volume YoY 1H 1H 1H 1H 1H YoY change (¥100 million) Change FY2018 FY2019 FY2020 FY2021 FY2022 (amount) (%) Leases 1,884 3,016 2,173 2,272 1,934 -338 -14.9% Finance leases [1,636] [2,066] [1,608] [1,241] [1,128] [-113] [-9.1%] Operating leases [247] [950] [565] [1,0
Slide 45: Newly executed lease contract volume (by type of equipment)
Appendix ６ Newly executed lease contract volume (by type of equipment) 1H 1H 1H YoY Change (¥100 million) FY2020 FY2021 FY2022 IT & office equipment 869 662 636 -26 Industrial machinery 136 92 66 -26 Civil engineering and construction machinery 42 16 14 -3 Transportation equipment 180 356 185 -171 M
Slide 46: Summary of the operating results of the major subsidiaries
Appendix 7 Summary of the operating results of the major subsidiaries Sharp Finance Corporation Fuyo Auto Lease Co., Ltd. YAMATO LEASE CO., LTD. Accretive Co., Ltd. (ownership ratio: 65%) (ownership ratio: 100%) (ownership ratio: 60%) (ownership ratio: 74%) 1H 1H 1H 1H 1H 1H 1H 1H YoY change YoY cha
Slide 47: Going Where No One Has Gone Before
“Going Where No One Has Gone Before” FUYO GENERAL LEASE CO., LTD. 47