Results for the Third Quarter of the Fiscal. January 28, 2016 NEC Capital Solutions Limited

Transcription

1 Supplementary Document for Results for the Third Quarter of the Fiscal Year Ending March 31, 2016(FY2015) January 28, 2016 NEC Capital Solutions Limited

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3 CONTENTS 1. Financial Results for the Third Quarter of FY2015 1)Highlights of Consolidated Financial Statements 2) Environment 3)Consolidated Financial Summary 4)Consolidated Revenues by Segment 5)Contracts Executed by Segment (Non-consolidated base) 6)Leasing/Installment Sales (Non-consolidated base) 7)Finance (Non-consolidated base) 8)RISA (Operating Income) 9)Operating Asset Balances (Consolidated) 10)Procurement Funds (Consolidated) 11)Credit Costs (Consolidated) 2. Plan for March 2016 Term(FY2015) 1)Consolidated Earnings Forecasts

4 1. Financial Results for the Third Quarter of FY2015

5 1)Highlights of Consolidated Financial Statements Environment Total leasing contracts increased Y/Y due to lessening of the effect of factors such as the tax rate increase implemented in April of last year. Conditions for procuring funds remained favorable. Although the number of bankruptcies in the third quarter fell Y/Y for the 6th straight year, total liabilities in bankruptcy were higher than the previous year. Sales Top Line In the Leasing/Installment Sales business, although contract executions declined Y/Y, new transactions grew Y/Y. Finance increased Y/Y. < Leasing/Installment Sales > Contracts executed: down 2.4% New transactions: up 4.0% < Finance > Contracts executed: up 9.5% New transactions: up 10.3% Performance Income increased mainly in the RISA business; ordinary income was roughly unchanged due to reduced reversals of credit costs. 5 NEC Capital Solutions Limited 2016

6 2) Environment Year-on-year change in total leasing contracts (%) Total Leasing Contracts: -Our mainstay Information and Communication Equipment leasing increased by 5.3% Y/Y. -Total leasing contracts also up by 10.3% Y/Y. Bankruptcies: -Although the number of bankruptcies in the third quarter fell Y/Y for the 6th straight year, total liabilities in bankruptcy were higher than the previous year. Construction machinery Volume of leasing contracts Bankruptcies (total liabilities/number of bankruptcies) (Number) Total liabilities Number of 1200 (Left axis) bankruptcies (Right axis) Information and communication equipment 12/1Q 12/2Q 12/3Q 12/4Q 13/1Q 13/2Q 13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 15/3Q (Source: Lease statistics of the Japan Leasing Association) 6 NEC Capital Solutions Limited /1Q 13/2Q 13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 15/3Q (Source: Bankruptcy information on the website of Teikoku Data Bank; liabilities of companies that filed for bankruptcy)

7 3)Consolidated Financial Summary Revenues: Grew by 5.4% Y/Y mainly from the RISA business Ordinary Income: Remained largely unchanged, despite such things as reduced reversals of credit costs, and impairment losses on leased assets, due to the influence of the exchange rate Equity Ratio: 9.4%(Dec.2014) 9.6%(Dec.2015) Performance measures FY2014 FY2015 3Q 3Q Y/Y Change Revenues % Operating Income % Ordinary Income % Profit attributable to owners of parent % Net Income per Share (JPY) Operating Asset Balance % Net Assets % Shareholders' Equity % Equity Ratio (%) Interim Dividend per Share (JPY) NEC Capital Solutions Limited 2016 Main Reasons for Y/Y Increase/Decrease in Ordinary Income Gross profit on Reversals of other increased credit costs declined FY2014 3Q 1.7 Selling, general and administrative expenses declined Gross profit on Leasing declined Impairment Loss, Others 1.6 Profit on loan increased Nonoperating income increased FY2015 3Q

8 4)Consolidated Revenues by Segment Revenues by Segment Leasing/ Installment Sales Finance RISA Other Total *Excluding adjustment amount FY2014 FY2015 3Q 3Q Y /Y Change Revenues % Gross Profit % Operating Income % Revenues % Gross Profit % Operating Income % Revenues % Gross Profit % Operating Income % Revenues % Gross Profit % Operating Income Revenues % Gross Profit % Operating Income % <<Leasing/Installment Sales >> Revenues decreased by 2.1% Y/Y on withdrawal from small-scale business. Operating income fell by 43.6% Y/Y due to factors such as smaller reversals of credit costs. <<Finance >> Revenues increased by 10.3% Y/Y Operating income fell by 18.3% Y/Y on smaller reversals of credit costs. <<RISA >> Revenues increased by 129.7% Y/Y on sales of real estate held for resale and operational investment securities. Operating income increased by 315.3% Y/Y as gross profit increased in line with revenue growth. <<Other >> Revenues increased by 25.3% Y/Y on sales of healthcare-related real estate held for sale. Operating income improved by JPY 600 million Y/Y, moving into the black, on higher gross profit. 8 NEC Capital Solutions Limited 2016

9 5)Contracts Executed by Segment(Non-consolidated base) Contracts Executed by Segment Leasing/ Installment Sales FY2014 FY2015 3Q 3Q Y/Y Change % Leasing % Installment Sales % Finance % Loans % Bulk Factoring % Other % Total % New Transactions by Segment Leasing/ Installment Sales FY2014 FY2015 3Q 3Q Y/Y Change % Leasing % Installment Sales % Finance % Loans % Bulk Factoring % Other % Total % << Contracts Executed >> Declined by 2.4% Y/Y in Leasing/Installment Sales, despite promoting a range of measures, on a rebound from booking a large-scale project last year. Finance business grew by 9.5% Y/Y on growth in Loans. << New Transactions >> Grew Y/Y in both Leasing/Installment Sales and Finance businesses on the successes of a range of measures. 9 NEC Capital Solutions Limited 2016

10 6)Leasing/Installment Sales (Non-consolidated base) Contracts Executed by Customer Sector Public Sector: Government & Municipal Information and Communication Equipment FY2014 FY2014 FY2015 FY2015 3Q 3Q Y /Y Change % Private Sector % Services % Distribution % Manufacturing % Other % Total % (For ref.) Contracts Executed by Equipment Type 3Q 3Q Y/Y Change % Computer Hardware % Computer Software % Telecommunications Equipment % Office Equipment % Other % Total % New Transactions by Customer Sector Public Sector: Government & Municipal FY2014 FY2015 3Q 3Q Y/Y Change % Private Sector % Services % Distribution % Manufacturing % Other % Total % By customer sector, contracts executed in the public sector grew Y/Y, but private sector demand fell Y/Y rebounding from a largescale project booked last year. Overall, Contracts Executed decreased by 2.4 % Y/Y. New transactions in the private sector grew significantly Y/Y Overall, New Transactions increased by 4.0% Y/Y. 10 NEC Capital Solutions Limited 2016

11 7)Finance (Non-consolidated base) Contracts Executed by Form of Contract Contracts Executed by Customer s Sector Reimbursements,APF, Installment Sales Transaction-Backed Individual Factoring Securitization of Medical Institution Receivables Loans Other Total FY2014 FY2015 3Q 3Q Y/Y Change % % % % % Public Sector:Government & Municipal FY2014 FY2015 3Q 3Q Y/Y Change % Private Sector % Services % Distribution % Manufacturing % Financial % Real Estate % Other % Total % By type of contract, contracts executed in individual factoring saw a large increase of 39.2% Y/Y. Loans also grew Y/Y, for overall growth of 18.0% Y/Y for the Finance business. Private sector demand surged by 18.0% overall, with growth seen particularly in the Manufacturing and Services industries. In line with global strategy, foreign projects also saw significant improvements in results. 11 NEC Capital Solutions Limited 2016

12 8)RISA (Operating Income) FY2014 FY2015 Y/Y Change 3Q 3Q Asset Revenues % Gross profit % Operating income % Real Estate Revenues % Gross profit % Operating income Advisory Revenues % Services Gross profit % Operating income Goodwill Revenues Other Gross profit Operating income Total Revenues % (Consolidated) Gross profit % Operating income % High Y/Y Revenues Growth With Goodwill Depreciation taken into consideration, Consolidated Operating Income Grew Significantly << Asset >> Income and profits increased on things like sales of operational investment securities and dividend income. << Real Estate >> Income and profits increased on sales of real estate held for resale <<Advisory Services >> Secured roughly similar Gross profit to last year. 12 NEC Capital Solutions Limited 2016

13 9)Operating Asset Balances (Consolidated) % Dec.2013 Dec.2014 Dec.2015 RISA Other Bulk Factoring Loan Leasing / Installment Sales << Operating Asset Balances >> Leasing/Installment Sales balance grew by 4.5% or JPY 19.1bn Y/Y. Dec.2014 Dec.2015 Y/Y Change Public Sector Private Sector The Loan balance increased by 7.1% or JPY 11.2bn Y/Y. The Loan balance increased on financing denominated in foreign currencies associated with development of global businesses. Also, Individual Factoring increased by JPY 13.0bn due to growth in manufacturing industry factoring. The balance in Other grew by JPY 22.9bn Y/Y. Healthcare-related real estate for sale declined by JPY 23.1bn. JPY 61.1bn (Dec. 2014) JPY 38.0bn (Dec. 2015) 13 NEC Capital Solutions Limited 2016

14 10)Procurement Funds (Consolidated) Funding Cost Ratio 1.0% 0.9% 0.8% 0.7% 0.6% Composition of Interest-bearing Debt 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0.84% 0.82% 0.71% FY2013 3Q FY2014 3Q FY2015 3Q Short-term borrowings Long-term debts Commercial Paper Bonds Payable CPUnder Securitized Lease 社債 Receivable 資金原価率 (%) = 資金原価有利子負債平残 Funding cost ratio (%)= Cost of funding / Average Balance of Interest-bearing debt Dec.2013 Dec.2014 Dec.2015 FY2014 3Q C omposition Ratio FY2015 3Q Composition Ratio Y/Y Change Short-term Borrowings % % Long-term Debts % % Commercial Paper % % 50.0 Bonds % % 15.0 Payable Under Securitized Lease Receivables % % -0.0 Total % % -1.3 Direct funding ratio 22.9% Composition of Interest-bearing Debt Funding cost ratio was 0.71%,decreased by 0.11% Y/Y Declined due to a Commercial Paper shift on long-term debt, lower fund procurement spread, and various other measures. Direct funding ratio was increased by 12.8% (Dec.2014) 22.9% (Dec.2015) Rose on higher Commercial Paper balance 14 NEC Capital Solutions Limited 2016

15 11)Credit Costs (Consolidated) Credit Costs (Specific reserve + general reserve) Credit costs were increased by JPY 1.7bn Y/Y (of which, general expenses increased by JPY 0.8bn). Specific reserve expenses increased by JPY 0.9bn due to factors such as lower reversals of allowances for doubtful debts FY2014 3Q RISA NEC Capital Solutions Limited FY2015 3Q Except Loan Except Loan Loan RISA Non-performing Loans (Specific reserve) % -0.04% FY2014 3Q FY2015 3Q RISA Except Loan Except Loan business Loan RISA Rate of Client Bankruptcy The specific reserve ratio (%) = the amount of losses arising as a result of new insolvencies / (average balance of operating assets + average balance of claims in bankruptcy) The amount of losses arising as a result new bankruptcies = claims in bankruptcy + doubtful loans 0% -2% -4% -6%

16 2. Plan for March 2016 Term(FY2015)

17 2. Plan for March 2016 Term(FY2015) 1)Consolidated Earnings Forecasts Consolidated Earning Forecasts Actual Forecast FY2014 FY2015 FY2015 (3Q) Revenues Operating Income Ordinary Income Profit attributable to owners of parent (Unit: JPY) Net Income per Share Dividend Per Share FY2015 Forecast (Unit: JPY) Interim Year-end Annual FY2014 Actual NEC Capital Solutions Limited 2016

18 The presentation materials are solely for the purpose of providing corporate information of NEC Capital Solutions Limited and not for soliciting purchase, sale, or investment in securities issued by the Company. We ask for the discretion of investors in making investment decisions. The presentation materials contain forward-looking statements pertaining to the Company s plans, strategies and financial targets, which are created based on currently available assumptions, data, or methods and contain a certain level of risk or uncertain factors. Investors are advised not to place undue reliance on the forward-looking statements as they only reflect the Company s analysis and expectations. A number of important factors that could cause actual results to differ materially from such statements include (i) change in general economic conditions and laws/regulations in the Company s market, (ii) potential legal liabilities relating to the Company s business and operations, (iii) fluctuating demand for and competitive pricing pressure on the Company s services, (iv) deterioration of the global economic and financial environment, (v) downturn of domestic and international stock markets, and so forth. Risks and uncertainties also include any future events with material unforeseen impacts. Forward-looking statements contain the most updated information as of the date of compilation. New risks and uncertainties constantly arise, and it is impossible for the Company to predict such events or how they may affect the Company. 18 NEC Capital Solutions Limited 2016

19 本資料に記載されている株主投資家向け情報は投資勧誘保証を目的として作成されたものではありません実際に投資を行う際はご利用者ご自身のご判断において行われるようお願い致します本資料に記載されている当社の計画戦略および業績見通しは将来の予測であってリスクや不確定な要因を含んでおりますまた本資料に記載されている経営目標は予想ではなく将来の業績に関する経営陣の現在の予想を反映したものでもありませんむしろ経営陣が事業戦略の実行を通じて達成しようとする目標であります NEC Capital Solutions Group Vision 実際の業績等はさまざまな要因により見通し等と大きく異なる結果となりうることをあらかじめご承知願います実際の業績等に影響を与えうる重要な要因としては当社の事業 To be a global solution service company that aims to enhance social value with customers 領域を取り巻く経済情勢及び規制や法令の変更潜在的な法的責任当社のサービスに対する需要変動や競争激化による価格下落圧力などがありますがこれら以外にも様々な要因がありえますまた世界経済の悪化世界の金融情勢の悪化国内外の株式市場の低迷などにより実際の業績等が経営目標その他の見通しと異なる結果となる可能性もあります当社による将来予測に関する記述はその日現在のものであることをご承知おきください新たなリスクや不確定要因は随時生じるものでありその発生や影響を予測することは不可能でありますまたリスクや不確定要因があるため将来予測に関して記述されていることが実際には起こらない場合もありえますこれらの記述に全面的に依拠することは控えるようお願いします 19 NEC Capital Solutions Limited 2016

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