Fuyo General Lease : Announces Summary of Results for the First Three Months of the Fiscal Year Ending March 31, 2022

July 29 2021

Fuyo General Lease Co., Ltd.

President & Chief Executive Officer: Yasunori Tsujita

Ticker: 8424, First Section, Tokyo Stock Exchange

Inquiries: Mayumi Kimura,

General Manager, Corporate Communication Division

Tel: [phone]

Fuyo General Lease Announces Summary of Results

for the First Three Months of the Fiscal Year Ending March 31, 2022

Fuyo General Lease Co., Ltd. today announced a summary of results for the first three months of the fiscal year ending March 31, 2022 (fiscal 2021). This announcement should be read in conjunction with the Consolidated Financial Results for the Three Months Ended June 30, 2021 (Under Japanese GAAP), also released today.

1. Overview of Results for the First Three Months of Fiscal 2021

(Consolidated)

Operating profit, ordinary profit, and net profit attributable to owners of the parent all exceeded the same period of the previous year, setting new record highs in the first quarter.

Net sales declined due to the application of "Accounting Standards for Revenue Recognition" (ASBJ Statement No. 29) from the first quarter of the current fiscal year.

The balance of operating assets (net of the deferred profit on installment sales)、 increased by 41.8 billion yen (1.6%) from the end of the previous fiscal year to 2,597.7 billion yen due to growth in real estate leasing and aircraft leasing.

Summary of Consolidated Operating Results for the First Three Months of Fiscal 2021

(April 1 - June 30, 2021)

Q1 FY 2021	YoY change
Amount	%

Net sales*	141,578	(37,440)	(20.9%)
Operating profit	10,976	1,402	14.7%
Ordinary profit	12,217	1,997	19.5%
Profit attributable to	7,991	1,794	29.0%
owners of parent

（¥ millions）

Full Year

Forecast

610,000

46,500

50,000

31,000

1

*"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) has been applied from the beginning of the first quarter of the current consolidated accounting period and the figures for the first quarter of the fiscal year ending March 2022 are the figures after applying the relevant accounting standards. If net sales is recognized based on conventional standards, it will be at 176.4 billion yen (1.5% decrease in the same quarter of the previous year).

2. Year-on-year Comparison (Consolidated)

The following is a comparison of the results for the first quarter of the current fiscal year with the results for the same period of the previous year.

(¥100 million; amounts are rounded to the nearest 100 million yen）

		Q1 FY 2020	Q1 FY 2021	YoY change
		Apr. 2020-June 2020	Apr. 2021-June 2021
				Amount		%
Net sales	1,790	1,416	(374)		(20.9)
Cost of sales	1,566	1,177	(389)		(24.9)
（Excl. Interest expenses）
Profit before interest expenses	224	239	15		6.6
Interest expenses	26	25	(2)		(6.0)
Gross profit	198	215	16		8.3
Selling, general	103	105	2		2.3
and administrative expenses
	Credit-related costs	6	12	6		92.6
Operating profit	96	110	14		14.7
Non-operating	6	12	6		92.1
income/expenses
	Reversal of	1	2	1		148.5
	credit-related costs
Ordinary profit	102	122	20		19.5
Extraordinary income/losses	(0)	(1)	(0)		―
Profit before income taxes	102	122	20		19.2
Profit attributable to owners of parent	62	80	18		29.0
Basic earnings per share	¥206.71	¥266.37
Net assets per share		¥10,478.20
（Compared to the end of the	¥10,153.22
previous fiscal year）

Note：The year-on-year amount and percentage changes are derived from figures that include amounts less than 100 million yen.

2

3. Segment Results (Consolidated)

Operating results for each segment for the first three months of fiscal 2021 were as follows.

Fiscal 2021 Q1 Consolidated Operating Results (April 1, 2021 - June 30, 2021)

（¥100 million; amounts are rounded to the nearest 100 million yen）

		Profit
Net sales	Costs of	before	Interest	Gross profit
sales	interest	expenses
		expenses

			Lease	1,191	1,057	134	14	120
			Installment sales	79	75	4	1	3
	Lease and Installment	1,269	1,131	138	15	123
	sales total
	Financing	57	1	56	9	47
	Other	89	44	45	1	44
			Total	1,416	1,177	239	25	215
For reference:
	Fiscal 2020 Q1 Consolidated Operating Results (April 1, 2020 - June 30, 2020）
				(¥100 million; amounts are rounded to the nearest 100 million yen)
						Profit
				Net sales	Costs of	before	Interest	Gross profit
				sales	interest	expenses
						expenses
			Lease	1,167	1,038	129	14	115
			Installment sales	131	127	4	1	3
Lease and Installment	1,298	1,165	133	14	119
sales total
Financing	50	1	49	11	38
Other	442	400	43	1	42
			Total	1,790	1,566	224	26	198

3

4. Operating Assets (Consolidated)

The balance of operating assets increased by 41.8 billion yen (1.6%) from the end of the previous fiscal year to 2,597.7 billion yen.

(¥100 million）

Lease

Installment sales

Financing & Other

２５，５５９

２５，９７７

２３，８４０

７,５９４

７,５９０

６,９１９

７７９

８３５

７８４

		１７,１３３		１７,６０４
１６,１３６

End of Fiscal 2019

End of Fiscal 2020

End of Q1 Fiscal 2021

（June 30 2021）

Note: Installment receivables are net of deferred profit on installment sales.

5. Fund Procurement (Consolidated)

The balance of procurement increased by 16.3 billion yen (0.7%) from the end of the previous fiscal year to 2,447.3 billion yen. In addition, the direct procurement ratio was 34.8%.

(¥100 million）	Direct financing	Indirect financing

２４，３１０２４，４７３

２２，３１０

１４,８５２

１６,３８９１５,９６３

８,５１０

７,９２１

７,４５９

Direct financing

Direct financing

Direct financing

34.8％

33.4％

32.6％

End of Fiscal 2019

End of Fiscal 2020

End of Q1 Fiscal 2021

（June 30 2021）

Note: Lease obligations are excluded.

4

6. Status of Net Assets (Consolidated)

Net assets increased by 9.2 billion yen (2.7%) from the end of the previous fiscal year to 354 billion yen. The shareholder's equity ratio rose to 10.5%.

(¥100 million）	Net assets					Shareholder's equity ratio
						３,４４８			３,５４０
	３,１１８
													10.5%
							10.2%
		10.0%

End of Fiscal 2019	End of Fiscal 2020	End of Q1 Fiscal 2021
		（June 30 2021）

7. Consolidated Full-year Earnings Forecast and Dividend Forecast for Fiscal 2021

The Company's consolidated full-year earnings forecast and cash dividend forecast for fiscal 2021 are unchanged from those announced on May 10, 2021.

(1) Consolidated Full-year Earnings Forecast for Fiscal 2021

（¥ millions, except per share amounts）

		Net sales	Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				per share
							owners of parent
Full year	610,000		46,500		50,000		31,000	￥1,033.44
(2) Cash Dividend Forecast for Fiscal 2021
				Interim results	Year₋end	Full year
		Dividend per share	￥130.00	￥130.00	￥260.00

Note: The above performance and dividend forecasts are based on current forecasts. Actual performance and dividends may differ from the forecasts due to various factors in the future.

5