Fuyo General Lease : Consolidated Financial Results for the Three Months Ended June 30, 2021(Under Japanese GAAP)

(Member of Financial Accounting

Standards Foundation)

Consolidated Financial Results

for the Three Months Ended June 30, 2021

(Under Japanese GAAP)

					July 29, 2021
Company name:	Fuyo General Lease Co., Ltd.			Listing: Tokyo Stock Exchange
Securities code:	8424
URL: https://www.fgl.co.jp/
Representative: Yasunori Tsujita, President & CEO
Inquiries	:	Yusuke Kishida, Managing Executive Officer	Telephone: [phone]
Scheduled date to file quarterly securities report	:	August 13, 2021
Scheduled date to commence dividend payments	:	－
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing			: None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)	(Percentages indicate year-on-year changes.)
		Net sales		Operating profit	Ordinary profit	Profit attributable
			to owners of parent
Three	months ended	(¥ millions)		%	(¥ millions)	%	(¥ millions)	%	(¥ millions)	%
June	30, 2021	141,578		(20.9)	10,976	14.7	12,217	19.5	7,991	29.0
June	30, 2020	179,019		8.5	9,574	2.8	10,219	3.0	6,196	0.6

Note: Comprehensive income For the three months ended June 30, 2021:	13,239 million	40.6%
	For the three months ended June 30, 2020:	9,414 million	641.0%
	Basic earnings	Diluted earnings
	per share	per share
Three months ended	(¥)	(¥)
June 30, 2021	266.37	264.67
June 30, 2020	206.71	205.26

• "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).
  For details, refer to 1. Consolidated financial statements and significant notes thereto (3) Notes to the consolidated financial statements (Changes in accounting policies) on P.11 of the Supplementary Materials.

1. Consolidated financial position

	Total assets	Net assets		Shareholders'	Net assets per share
		equity ratio
As of	(¥ millions)	(¥ millions)		%	(¥)
June 30, 2021	2,993,122	353,974		10.5	10,478.20
March 31, 2021	2,979,285	344,796		10.2	10,153.22
Reference: Shareholders' equity
As of June 30, 2021	314,367 million	As of March 31,2021	304,565 million

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2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
	(¥)	(¥)	(¥)	(¥)	(¥)
FY2020	－	110.00	－	130.00	240.00
FY2021	－
FY2021(Forecast)		130.00	－	130.00	260.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast for Fiscal 2021 (April 1, 2021 - March 31, 2022)

(Percentage figures represent comparisons with fiscal 2020 full-year results)

	Net sales	Operating profit	Ordinary profit	Profit attributable	Basic earnings
	to owners of parent	per share
	(¥ millions)	%	(¥ millions)	%	(¥ millions)	%	(¥ millions)	%	(¥)
Full year	610,000	(17.6)	46,500	4.4	50,000	4.2	31,000	4.8	1,033.44

Note: No changes were made to the most recently announced earnings forecasts.

• "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 if net sales is expected based on the conventional standard, there will be 750 billion yen (1.3% increase from the previous fiscal year).

*Notes

(1) Changes in significant subsidiaries during the period

(changes in specified subsidiaries resulting in the change in scope of consolidation): None

1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
2. Changes in accounting policies, changes in accounting estimates, and restatement

(ｉ) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

(ⅱ) Changes in accounting policies due to other reasons: None

(ⅲ) Changes in accounting estimates: None

(ⅳ) Restatement: None

(4) Number of issued shares (common shares)

(ⅰ) Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2021 30,287,810 shares

As of March 31, 2021 30,287,810 shares

(ⅱ) Number of treasury shares at the end of the period

As of June 30, 2021

285,795 shares

As of March 31, 2021

290,885 shares

(ⅲ) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2021 30,000,787 shares Three months ended June 30, 2020 29,976,385 shares

Note: The Company has introduced Board Benefit Trust (BBT). Number of treasury shares includes the following Company's shares held by Board Benefit Trust (BBT) 91,600 shares as of June 30, 2021 and 96,700 shares as of March 31, 2021. Furthermore, treasury shares that are deducted in the calculation of the average number of shares during the period include the following Company's shares held by Board Benefit Trust (BBT) 92,832 shares for the three months ended June 30, 2021 and 98,165 shares for the three months ended June 30, 2020.

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

(Caution Concerning Forward-Looking Statements)

Earnings forecasts and other forward-looking statements in this report are based on certain assumptions that are deemed reasonable and information available to the Company at the time of this report's preparation. Therefore the Company does not guarantee the achievement of any projections. Actual results may differ significantly from these forecasts for a number of reasons.

(Method of Obtaining Supplementary Explanation Materials)

The materials are disclosed on the Timely Disclosure network (TDnet) on the same day as the date of this report.

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Supplementary Materials - Contents

1. Consolidated financial statements and significant notes thereto	……………………… P.4
(1)	Consolidated balance sheets	……………………… P.4
(2)	Consolidated statements of income and statements of comprehensive income	……………………… P.8
	Consolidated statements of income	……………………… P.8
	for the three months ended June 30, 2021
	Consolidated statements of comprehensive income	……………………… P.10
	for the three months ended June 30, 2021
(3)	Notes to the consolidated financial statements	……………………… P.11
	Note on the going-concern assumption	……………………… P.11
	Note on significant changes in shareholders' equity	……………………… P.11
	Adoption of accounting treatment specific to the preparation of quarterly	……………………… P.11
	consolidated financial statements
	Changes in accounting policies	……………………… P.11
2. Newly executed contracts, operating assets	……………………… P.12
(1)	Executed contracts volume	……………………… P.12
(2)	Operating assets	……………………… P.12

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1. Consolidated financial statements and significant notes thereto

1. Consolidated balance sheets

			(¥ millions)
		As of March 31, 2021	As of June 30, 2021
Assets
Current assets
Cash and deposits	98,926	79,739
Installment receivables	84,545	78,893
Lease receivables and investments in leases	1,080,797	1,068,833
Operating loans	306,635	319,021
Accounts receivable - other loans to customers	117,660	113,616
Operational investment securities	283,209	275,939
Other operating assets	19,011	18,769
Accounts receivable - lease	29,604	24,805
Other	91,294	83,443
Allowance for doubtful accounts	(3,047)	(2,635)
Total current assets	2,108,637	2,060,426
Non-current assets
Property, plant and equipment
Assets for lease
Assets for lease	632,299	691,318
Advances for purchase of assets for lease	8,140	12,398
Total assets for lease	640,440	703,717
Other operating assets	33,276	32,737
Own-used assets	3,662	3,571
Total property, plant and equipment	677,379	740,027
Intangible assets
Assets for lease	240	242
Other intangible assets
Goodwill	20,718	20,393
Other	7,741	7,540
Total other intangible assets	28,459	27,934
Total intangible assets	28,699	28,176

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			(¥ millions)
		As of March 31, 2021	As of June 30, 2021
Investments and other assets
Investment securities	112,838	113,969
Distressed receivables	558	591
Retirement benefit asset	64	90
Deferred tax assets	2,620	2,277
Other	47,450	46,658
Allowance for doubtful accounts	(287)	(315)
Total investments and other assets	163,244	163,273
Total non-current assets	869,323	931,476
Deferred assets
Organization expenses	1	1
Business commencement expenses	1,322	1,217
Total deferred assets	1,323	1,218
Total assets	2,979,285	2,993,122

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