Summary of Financial Results for the 1st half of FY2021

Summary of Financial Results

for the 1st half of FY2021

November 5, 2021

FUYO GENERAL LEASE CO., LTD.

Agenda

1. Overview of consolidated operating results
2. Overview of business activities
3. Earnings forecast and dividend policy
4. Appendix

Earnings forecasts and other forward-looking statements provided in this material are based on the information currently available to the Company and are subject to risks and uncertainties. Actual results may differ materially from the forecasts presented herein.

2

1. Overview of consolidated operating results

(1) 1H FY2021 results

・In addition to the growth in profit before interest expenses mainly in strategic fields, non-operating income (recoveries of receivables, share of profit of entities accounted for using equity method , etc.) also contributed to the increase, and profit at each level increased and reached a record high.

・ROA exceeded the target of the current medium-term management plan (2.0%) through the promotion of asset control with a stress on of profitability.

	FY2020	FY2021	YoY change	YoY change	(¥100 million)
	1H results	1H results	(amount)	(%)
Net sales*	3,574	2,854	-720	-20.1%
					＊1	Gross profit before
Profit before interest expenses *1	459	481	22	4.8%
	deducting interest
						expenses
Gross profit	409	435	26	6.3%
Operating profit	209	235	26	12.3%
Ordinary profit	228	275	47	20.7%
					＊2	Profit attributable to
Profit *2	139	181	42	30.3%		owners of parent
Basic earnings per share	¥462.79	¥602.58	¥139.79	30.2%

Newly executed contract volume	6,624
Operating assets	25,559＊4
ROA *3	1.94%＊4

6,439

25,582

2.15%

-186-2.8%

24 0.1%

0.21pt

＊3 Ordinary profit (annualized) /operating assets (average balance)

＊4 As of March 31, 2021

• The "Accounting Standard for Revenue Recognition" has been applied from the beginning of the first quarter ended June 30, 2021, and net sales for the six months ended September 30, 2021 is the figures after applying the relevant accounting standards. If net sales is recognized based on conventional standards, it will be at ¥355.2 billion(0.6% decrease from the same period of the previous year).

In addition, the application of the "Accounting Standard for Revenue Recognition" had no impact on profit and loss.

3

1. Overview of consolidated operating results

1. Income and expenses

		1H	1H	1H	1H	1H	YoY change
		(1H FY2020
		FY2017	FY2018	FY2019	FY2020	FY2021
		to 1H FY2021
Net sales	3,026	2,957	3,445	3,574	2,854	-720
Cost of sales ＊1	2,678	2,595	3,029	3,114	2,373	-742
Profit before interest	348	362	416	459	481	22
expenses＊2
Interest expenses	36	41	47	50	47	-4
Gross profit	312	321	369	409	435	26
SG&A	137	139	164	200	200	-0
	Credit-related costs	[1]	[2]	[5]	[9]	[14]	[5]
Operating profit	175	182	205	209	235	26
Non-operating	13	14	15	18	40	21
income/expenses
	Reversal of credit-	[4]	[1]	[1]	[2]	[15]	[13]
	related profits/losses
Ordinary profit	188	196	220	228	275	47
Extraordinary	-0	2	2	-0	1	1
income/losses
Profit attributable to	117	127	137	139	181	42
owners of parent
Basic earnings per share(¥)	387.59	419.54	455.81	462.79	602.58	139.79

(¥100 million)

Sales decreased mainly due to the application of "Accounting Standard for Revenue Recognition."

The application had no impact on profit and loss.

＊1 Excluding interest expenses

＊2 Gross profit before deducting interest expenses

Profit before interest expenses

• Strategic fields and Financing performed well

SG&A expenses

• One-timecosts such as expenses related to main office relocation recorded in the same period of the previous year have been removed.

Non-operating income

• Increases in share of profit of
  entities accounted for using equity method and recoveries of receivables

4

1. Overview of consolidated operating results

(3) Factors causing the increase in ordinary profit

• Profit before interest expenses*1 increased due to growth in strategic fields, particularly energy and the environment and real estate.
• Personnel/equipment expenses decreased due to the absence of one-time costs recorded in the same period of the previous fiscal year.
• Increase in non-operating income due to increase in recoveries of receivables and share of profit of entities accounted for using equity method contributed to significant increase in ordinary income

(¥100 million)

Profit before

interest expenses

+22

Ordinary

profit

228

Personnel/equipment	Interest expenses
expenses
+5	+4

Recorded ¥0.6 billion in expenses related to main office relocation in the same period of the previous year

Non-operating

income/expenses＊2

Credit-related costs

+8 +9

Ordinary

profit

275

Recorded recoveries of receivables of ¥1.4 billion, mainly in the aircraft business.

1H FY2020								1H FY2021
									(¥100 million)
	1H FY2020	1H FY2021	Change
				1H FY2020	1H FY2021	Change
Profit before interest	459	481	22		Non-operating	16	25	9
expenses
	income/expenses*2
Personnel expenses	111	112	1
	Ordinary Profit		228	275	47
Equipment expenses	80	73	-7
	＊1 Gross profit before interest expenses
Interest expenses	50	47	-4
	＊2 Excluding reversal of credit-related profits/losses
Credit-related costs	7	-1	-8
					5