Fuyo General Lease Co., Ltd. · TSE:8424
Fuyo General Lease — 1H FY2016 Earnings Presentation
24 slides from Fuyo General Lease's earnings presentation, Nov 10, 2016
Slide 1: Financial Results briefing for the 1st half of FY2016
Financial Results briefing for the 1st half of FY2016 IR Presentation November 10, 2016 FUYO GENERAL LEASE CO., LTD. 1
Slide 2: Agenda
Agenda 1. Overview of consolidated operating results 2. Overview of business activities 3. Progress of “Value Creation 300” Medium-term Management Plan 4. Operating results forecast and dividend policy 5. Appendix Earnings forecasts and other forward-looking statements provided in this material are
Slide 3: 1H FY2016 results and progress
1. Overview of consolidated operating results 1H FY2016 results and progress (¥100 million) FY2015 FY2016 YoY YoY FY2016 Progress 1H 1H change change forecast ratio (amount) (%) results results Total revenues 2,484 2,449 -35 -1.4% 5,100 48.0% Profit before interest expenses (*1) 295 306 +11 +3.8% Gr
Slide 4: Ordinary income and profit attributable to owners of parent; Total revenues
1. Overview of consolidated operating results Ordinary income and profit Total revenues attributable to owners of parent Continued uptrend in ordinary income and Continued increase in total revenues since 1H profit* on the basis of an increase in profit FY2008 on the basis of sustained growth of bef
Slide 5: Factors affecting ordinary income
1. Overview of consolidated operating results Factors affecting ordinary income ・Increase in lease assets and profitability improvement contributed to the increase in profit before interest expenses (+¥1.1 billion) ・Increase in interest expenses attributable to factors including an increase in forei
Slide 6: Profit before interest expenses
1. Overview of consolidated operating results Profit before interest expenses [Leases segment] Asset balance and gross margin on assets (¥100 million) (%) Profit before interest expenses trending up on strong profit from the core leasing 14,000 12,440 13,023 5 business, with profit from the financin
Slide 7: Changes in costs; Changes in net assets and equity ratio
1. Overview of consolidated operating results Changes in net assets and Changes in costs equity ratio At a time of growth in newly executed contract volume and operating assets, costs maintained Stable increase in net assets; equity ratio at a certain level. Continuation of reversal of maintained at
Slide 8: Newly executed contract volume; Operating assets
2. Overview of business activities Newly executed contract volume Operating assets Year-on-year growth of 11.4% in newly executed Operating assets steadily increasing toward contract volume, with a 23.5% increase in the the upwardly revised target for FY2016 (¥2 leases segment driving overall growth
Slide 9: Changes in newly executed contract volume; Newly executed lease contracts
2. Overview of business activities Changes in newly executed Newly executed lease contracts contract volume volume (by type of equipment) Performance consistently substantially above the Solid results from the IT & office equipment segment, industry average (Japan Leasing Association which accounts
Slide 10: Value Creation 300 Medium-term Management Plan: Key Strategy Overview
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 “Value Creation 300” Medium-term Management Plan Key Strategy Overview Solutions and Value Creation Business Strategies 1 Strengthen profit-generating potential through problem solving and creation of added value Stre
Slide 11: Value Creation 300: Targets and Progress
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 “Value Creation 300” Medium-term Management Plan Targets and Progress (¥100 million) Revised target Operating assets 400 20,000 Operating assets increasing at a faster 20,000 pace than expected towards the revised 19,
Slide 12: Aircraft business
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Aircraft business Leased seven aircraft in 1H FY2016: two self- 1H FY2016 leases arranged (self-owned aircraft) owned and five JOLCO. Increased self-owned fleet to 17 aircraft and total number of aircraft in ・Aeromexi
Slide 13: Financing business
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 Financing business Increasing operating assets while Slight slowing of the pace of increase of maintaining a diversified business portfolio operating assets amid intensifying competition due to the impact of the negat
Slide 14: Overseas business; Renewable energy
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 Overseas business Renewable energy Increase in operating assets on a local ・ In 1H FY2016, twenty-nine plants in operation currency basis, but a decrease on a yen basis contributing to profits as planned due to the im
Slide 15: Real estate leasing
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 Real estate leasing Topics in 1H FY2016 1H progress of 61% against a lease contract volume target revised to nearly twice the ・Strong results for Building leases with business hotels, original level in light of FY2015
Slide 16: Retail business
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 Retail business 1,692 Contract volume (vendor lease) (*1) Overview of 1H FY2016 (¥100 million) 1,552 Target 1,503 1,439 Year-on-year increase of 6% in total contract volume 893 768 737 717 ・Strong performance and a 20
Slide 17: Accounting services business
3. Progress of “Value Creation 300” Medium-term Management Plan Value Creation 300 Accounting services business Planned launch of the FLOW Cube+ service (cloud-based comprehensive asset management service), jointly developed with SAP Schematic Representation of FLOW Cube+ Physical asset management s
Slide 18: Summary of seven strategic business areas
3. Progress of “Value Creation 300” Medium-term Value Creation 300 Management Plan Summary of seven strategic business areas The seven strategic business areas are generally making good progress toward March 2017 targets (targets for the financing business, overseas business, and real estate leasing
Slide 19: FY2016 consolidated operating results forecast
4. Operating results forecast and dividend policy FY2016 consolidated operating results forecast (¥100 million) FY2016 1H FY2016 forecast Total revenues 2,449 5,100 Operating income 142 290 Ordinary income 157 320 Profit attributable to owners of parent 103 195 Basic earnings per share ¥340.28 ¥646.
Slide 20: FY2016 dividend policy
4. Operating results forecast and dividend policy FY2016 dividend policy ・Planned second-quarter dividend payment in accordance with the initial forecast (¥60) (Annual dividend forecast of ¥120) (yen) 120 60 100 80 74 70 66 62 60 58 54 50 43 33 25 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15
Slide 21: Summary of consolidated operating results
5. Appendix (1) Summary of consolidated operating results (¥100 million) 1H 1H 1H 1H 1H Year on FY2012 FY2013 FY2014 FY2015 FY2016 year Total revenues 2,181 2,120 2,255 2,484 2,449 -35 Total costs 1,928 1,879 2,012 2,223 2,179 -43 Interest expenses 34 34 32 33 36 +3 Gross profit 253 241 243 262 270
Slide 22: Newly executed contract volume
5. Appendix (2) Newly executed contract volume (¥100 million) YoY change YoY 1H 1H 1H 1H 1H (amount) change (%) FY2012 FY2013 FY2014 FY2015 FY2016 (1H FY2015 to (1H FY2015 to 1H FY2016) 1H FY2016) Leases 1,950 1,799 1,778 2,081 2,570 +490 +23.5% Finance leases 1,781 1,671 1,624 1,759 2,061 +302 +17.
Slide 23: Operating assets
5. Appendix (3) Operating assets (¥100 million) YoY YoY change 1H change (%) FY2012 FY2013 FY2014 FY2015 (amount) (FY2015 to FY2016 (FY2015 to 1H FY2016) 1H FY2016) Leases 10,986 11,528 11,765 12,440 13,023 +583 +4.7% Finance leases 9,206 9,680 9,649 10,060 10,408 +348 +3.5% Operating leases 1,780 1
Slide 24: Overview of non-consolidated results and principal consolidated companies' results
5. Appendix (4) Overview of non-consolidated results and principal consolidated companies’ results (¥100 million) Fuyo General Lease Co., Ltd. Fuyo Auto Lease Co., Ltd. Sharp Finance Corporation (Non-consolidated) (Ownership ratio: 100%) (Ownership ratio: 65%) 1H 1H 1H 1H 1H 1H YoY change YoY change