Nec Capital Solutions Limited · TSE:8793
Nec Capital Solutions — Q2 FY2011 Earnings Presentation
21 slides from Nec Capital Solutions's earnings presentation, Oct 28, 2011
Slide 1: Results Presentation for the Second Quarter of the Fiscal Year Ending March 31, 2012
Results Presentation for the Second Quarter of the Fiscal Year Ending March 31, 2012 October 28, 2011 NEC Capital Solutions Limited
Slide 2: Business Environment
1. Report of Financial Results for Second Quarter of FY2011 1 Business Environment - Capital expenditure: Currently slowing despite a resurgence in 2009 - Total leasing contracts: Clearer signs of having bottomed out after YoY decline for 39 consecutive months - Bankruptcies: Number of bankruptcies
Slide 3: Consolidated Financial Summary
1. Report of Financial Results for Second Quarter of FY2011 2 Consolidated Financial Summary - Net sales: Down 3.5% year on year, reflecting the decline in the Leasing Business - Ordinary income: Rose 23.0% year on year, owing to a substantial reduction in selling, general, and administrative expens
Slide 4: Consolidated Revenue by Business
1. Report of Financial Results for Second Quarter of FY2011 3 Consolidated Revenue by Business ▌Revenue by Business (Billions of Yen) <<Leasing and Installment Sales Business>> Gross profit tumbled 4.9% year on year, as the decline in new contracts executed was offset by an improvement in funding co
Slide 5: Consolidated Operation by Business
1. Report of Financial Results for Second Quarter of FY2011 4 Consolidated Operation by Business ▌Contract executed by Business ▌Contract secured by Business (Billions of Yen) (Billions of Yen) <<Contracts Executed>> In the Leasing and Installment Sale Business, contracts executed fell 18.5% year on
Slide 6: Leasing Business Operation (Consolidated)
1. Report of Financial Results for Second Quarter of FY2011 5 Leasing Business Operation (Consolidated) ▌Contract executed by customer ▌(Reference) Contract secured by customer (Billions of Yen) (Billions of Yen) ▌Contract executed by equipment (Billions of Yen) Contracts executed (excluding small t
Slide 7: Status of Loan Business excepting Bulk Factoring
1. Report of Financial Results for Second Quarter of FY2011 6 Consolidated Operation in Key Domains (Status of Loan Business excepting Bulk Factoring) ▌Contract executed by business ▌Contract executed by Customer (Billions of Yen) (Billions of Yen) Excluding bulk factoring, the Loan Business saw a y
Slide 8: Risa Business Operation (Gross profit)
1. Report of Financial Results for Second Quarter of FY2011 7 Risa Business Operation (Gross profit) First quarter (Jan – June) (Billions of Yen) Principal investment Investment banking Fund business business business Solution fund Corporate advisory Former Risa Group Corporate investment Corporate
Slide 9: Consolidated Operating Assets by Business
1. Report of Financial Results for Second Quarter of FY2011 8 Consolidated Operating Assets by Business (Billions of Yen) 800 660.4 << Operating Assets by Business >> 638.5 Overall operating assets by business increased 21.8 billion yen, or 3.4% year on year. 600 Operating assets in the Leasing Busi
Slide 10: Balance Sheet (Consolidated)
1. Report of Financial Results for Second Quarter of FY2011 9 Balanced sheet (consolidated ) - Total assets: Decreased 66.6 billion yen from the end of the previous term to 754.9 billion yen. - Liabilities: Shrank 69.8 billion yen from the end of the previous term to 678.5 billion yen - Net assets:
Slide 11: Funding (Consolidated)
1. Report of Financial Results for Second Quarter of FY2011 10 Funding (Consolidated) ▐ Cost of funding ratio ▐ Interest-bearing debts Cost of funding ratio(%) (Billions of Yen) = Cost of funding / average balance 1.5% of interest - bearing debts 1.4% 1.3% 1.2% 1.1% 0.97% 1.0% 0.9% 0.99% 0.8% 0.95%
Slide 12: Credit Costs (Consolidated)
1. Report of Financial Results for Second Quarter of FY2011 11 Credit Costs (Consolidated) - Total credit costs decreased to 2.7 billion yen. - Non-performing loans contracted 1.3 billion yen without any major bankruptcy. - The reversal of a specific reserve was executed after an improvement in cert
Slide 13: Plans for FY March 2012: Financial Results Forecast
2. Plans for FY March 2012 1 Financial Results Forecast (Consolidated) Billions of Yen ▐ Consolidated Forecast ▐ Dividend per Share Page 13 © NEC Capital Solutions Limited 2011
Slide 14: Outline of Medium-Term Business Plan 2011 and Present Focal Points
3. For Accomplishing the Medium-Term Business Plan 2011 Outline of Medium-Term Business Plan 2011 and Present Focal Points Medium-term vision Basic policies of the Medium-Term Business Plan “A company that will lead the creation of 2011 Development and expansion of capital solutions social capital
Slide 15: Action in Present Focal Points
4. Action in Present Focal Points Swiftly launch an ICT-related flow business Commercialize a business cloud solution jointly with NEC Expanding SaaS services Step up ongoing actions on BPO cloud services Enriching security service management in the mobile computing environment Strengthen the IB
Slide 16: Swift Launch of ICT-Related Flow Business (1/2)
[Action in Focus] Swift Launch of ICT-Related Flow Business (1/2) Launch of a cloud service for indirect material purchases (to be put into operation in the following fiscal year) Support the NEC Group’s cloud strategy using different approaches to expand business opportunities A one-stop service
Slide 17: Swift Launch of ICT-Related Flow Business (2/2)
[Action in Focus] Swift Launch of ICT-Related Flow Business (2/2) Step up ongoing actions on BPO cloud services A BPO cloud service named “PIT Managed Service” A one-stop set of services for increasing efficiency of lifecycle management of ICT assets based on cutting- edge technologies, covering pro
Slide 18: Broadening the array of IB advisory-related options
Broadening the array of IB advisory-related options Provide solutions to managerial challenges facing client firms across extensive domains Tie-up with Risa Asset management, CRE, due diligence, business succession, etc. Collaboration with other companies to provide support in top-line creation an
Slide 19: A Focus on the Risa Business
5. A Focus on the Risa Business Past Earnings Structure Targeted Earnings Structure Centered Centered onon income income gains gains Centered Centered on on capital capital gains gains after after withdrawal withdrawal of of real real estate estate business business == Considerable Considerable vola
Slide 20: Disclaimer
This presentation material is intended to provide our corporate information and not to solicit you to purchase, sell, or invest in the securities issued by NEC Capital Solutions Limited. We request that the investment decision shall be made at your own discretion. This presentation material contains
Slide 21: Empowered by Innovation
Empowered by Innovation NEC
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