Fuyo General Lease : Consolidated Financial Resultsfor the Nine Months Ended December 31, 2021(Under Japanese GAAP)

(Member of Financial Accounting

Standards Foundation)

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

(Under Japanese GAAP)

					February 4, 2022
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	:	February 14, 2022
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 nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)

(1)	Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
				Net sales		Operating profit		Ordinary profit	Profit attributable to
						owners of parent
Nine months ended	(¥ millions)		%	(¥ millions)	%		(¥ millions)	%	(¥ millions)	%
December	31,	2021	463,070		(16.4)	34,518	9.9		38,943	15.1		25,691	24.3
December	31,	2020	553,842		4.6	31,413	2.5		33,836	4.1		20,672	2.3
Note:	Comprehensive income For the nine months ended December 31, 2021:	¥ 29,396 million	9.3%
				For the nine months ended December 31, 2020:	¥ 26,902 million	(7.6)%

• "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) has been applied from the beginning of the first quarter ended June 30, 2021 and net sales for the nine months ended December 31, 2021 is the figure after applying the relevant accounting standards. If net sales is recognized based on conventional standards, it will be at 568.7 billion yen (2.7% increase from the same period of the previous year).

				Basic earnings		Diluted earnings
					per share		per share
Nine months ended		(¥)		(¥)
December 31, 2021		856.63		851.19
December 31, 2020		689.58		684.79
(2) Consolidated financial position
					Total assets		Net assets		Shareholders'	Net assets per share
							equity ratio
As of					(¥ millions)		(¥ millions)		%	(¥)
December	31,	2021		2,975,891		365,485		10.9	10,850.20
March	31,	2021		2,979,285		344,796		10.2	10,153.22
Reference: Shareholders'	equity
As of December 31, 2021	¥ 324,623 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
		(¥)	(¥)	(¥)	(¥)	(¥)
FY 2020		－	110.00	－	130.00	240.00
FY 2021		－	130.00	－
FY 2021	(Forecast)				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 ended June 30, 2021 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 December 31, 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 December 31, 2021

369,157 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)

Nine months ended December 31, 2021 29,991,372 shares Nine months ended December 31, 2020 29,979,177 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) 177,100 shares as of December 31, 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) 102,840 shares for the nine months ended December 31, 2021 and 97,185 shares for the nine months ended December 31, 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. Qualitative information regarding financial results for the nine months ended ………………………	4
December 31, 2021
(1)	Explanation of operating results	………………………	4
(2)	Explanation of financial position	………………………	4
(3)	Explanation of consolidated earnings forecasts and other forward-looking	………………………	5
	statements
2. Consolidated financial statements and significant notes thereto	………………………	6
(1)	Consolidated balance sheets	………………………	6
(2)	Consolidated statements of income and statements of comprehensive income	………………………	10
	Consolidated statements of income	………………………	10
	for the nine months ended December 31, 2021
	Consolidated statements of comprehensive income	………………………	12
	for the nine months ended December 31, 2021
(3)	Notes to the consolidated financial statements	………………………	13
	Note on the going-concern assumption	………………………	13
	Note on significant changes in shareholders' equity	………………………	13
	Adoption of accounting treatment specific to the preparation of quarterly	………………………	13
	consolidated financial statements
	Changes in accounting policies	………………………	13
	Segment information	………………………	14
3. Newly executed contracts, operating assets	………………………	16
(1)	Executed contracts volume	………………………	16
(2)	Operating assets	………………………	16

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1. Qualitative information regarding financial results for the nine months ended December 31, 2021

1. Explanation of operating results
   Newly executed contract volume in the nine months ended December 31, 2021 totaled 1,011,240 million yen, down 0.7% year on year.
   In terms of profits, the Company reported net sales of 463,070 million yen, down 16.4% year on year, operating profit of 34,518 million yen, up 9.9% year on year, ordinary profit of 38,943 million yen, up 15.1% year on year, and profit attributable to owners of parent of 25,691 million yen, up 24.3% year on year. Net sales decreased due to the application of the "Accounting Standard for Revenue Recognition." If net sales is recognized based on conventional standards, it will be at 568,686 million yen, up 2.7%.
   Operating profit, ordinary profit and profit attributable to owners of parent all rose year on year to update their respective record highs for a nine-month period.

Operating results for each business segment are as follows. Please note that net sales for each segment are "revenues from external customers" and segment profit is the amount shown in reportable segments.

Lease and Installment Sales

Newly executed contract volume in the Lease and Installment Sales segment fell 0.9% year on year to 373,723 million yen and segment operating assets increased 0.6% from the end of the previous fiscal year to 1,807,212 million yen. Segment net sales increased 2.5% year on year to 417,309 million yen and segment profit increased 6.0% year on year to 24,410 million yen.

Financing

Newly executed contract volume in the Financing segment rose 1.3% year on year to 637,384 million yen, and segment operating assets increased 3.7% from the end of the previous fiscal year to 752,955 million yen. Segment net sales rose 11.5% year on year to 16,380 million yen, and segment profit increased 18.6% year on year to 12,660 million yen.

Other

Newly executed contract volume in the Other segment fell 98.9% year on year to 131 million yen, and segment operating assets decreased 5.2% from the end of the previous fiscal year to 31,529 million yen. Segment net sales fell 77.7% year on year to 29,380 million yen, and segment profit decreased 1.8% year on year to 6,120 million yen.

1. Explanation of financial position
   As of December 31, 2021, operating assets (after subtracting the deferred profit on installment sales) totaled 2,591,697 million yen, up 1.4% from the end of the previous fiscal year. Total assets amounted to 2,975,891 million yen, down 0.1% from the end of the previous fiscal year. As of December 31, 2021, indirect procurement decreased by 1.9% from the end of the previous fiscal year to 1,608,524 million yen, mainly due to a decrease in long-term borrowings, and direct procurement increased 1.1% from the end of the previous fiscal year to 800,688 million yen, mainly due to the issuance of bonds despite decreases in commercial papers and long-term payables under securitization of lease receivables. As a result, the outstanding balance as of December 31, 2021 decreased 0.9% from the end of the previous fiscal year to 2,409,213 million yen. The direct procurement ratio was 33.2%, an increase of 0.6 points from the end of the previous fiscal year.
   Total shareholders' equity rose 6.9% from the end of the previous fiscal year to 284,482 million yen mainly due to an increase in retained earnings. Total net assets as of December 31, 2021 totaled 365,485 million yen, up 20,688 million yen, or 6.0%, from the end of the previous fiscal year. Shareholders' equity ratio rose 0.7 points from the end of the previous fiscal year to 10.9%.

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1. Explanation of consolidated earnings forecasts and other forward-looking statements
   No revisions have been made to the consolidated earnings forecasts for the Forecast for Fiscal 2021 announced in Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 on May 10, 2021.

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