Fuyo General Lease : Financial Results Briefing for the 1st Half of FY2018 （1,421KB）

Financial Results Briefing for the

1st Half of FY2018

IR Presentation

November 12, 2018

FUYO GENERAL LEASE CO., LTD.

Agenda

• 1. Overview of consolidated operating results

• 2. Overview of business activities

• 3. Progress on "Frontier Expansion 2021" Medium-Term Management Plan

• 4. Operating results forecast and dividend policy

• 5. 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.

(1) 1H FY2018 results

・Reached new record-high levels of ordinary profit and profit attributable to owners of parent due to progress in strategic areas of the medium-term management plan.

・Newly executed contract volume and operating assets fell in absence of large bridge projects.

(Billions of yen)

FY2017 1H results	FY2018 1H results	YoY change (amount)	YoY change (%)
Total revenues	302.6	295.7	▲7.0	▲2.3%
Profit before interest expenses (*1)	34.8	36.2	+1.3	+3.8%
Gross profit	31.2	32.1	+0.9	+2.8%
Operating profit	17.5	18.2	+0.7	+3.9%
Ordinary profit	18.8	19.6	+0.8	+4.2%
Profit attributable to owners of parent	11.7	12.7	+1.0	+8.4%
Basic earnings per share	¥387.59	¥419.54	+31.95	+8.2%

(*1) Gross profit before deducting interest expenses

• (*2) Ordinary profit (annualized) / operating assets (average balance)

  Newly executed contract volume	523.5	484.5	▲39.0	▲7.5%
  Operating assets	2,172.6 (*3)	2,125.8	▲46.8	▲2.2%
  ROA (*2)	1.67% (*3)	1.83%	+0.16pt
  Net assets	282.6 (*3)	290.2	+7.7	+2.7%
  Equity ratio	10.2% (*3)	10.5%	+0.3pt

• (*3) As of March 31, 2018

(2) Total revenues

(3) Ordinary profit and profit attributable to owners of parent

Despite a decrease in large overseas projects, total revenues remained near our previous high.

Due to growth in the non-asset business, both ordinary profit and profit attributable to owners of parent continued to reach new record highs.

(4) Factors causing the increase in ordinary profit

・Profit before interest expenses grew steadily. Non-operating profit was up, mainly due to an increase in the value of holdings in equity-method affiliates.

・Ordinary profit rose, absorbing cost increases stemming from higher foreign currency borrowings and a drop-off in gains from the reversal of credit-related profits/losses.

1H FY2017	1H FY2018	Change
Profit before interest expenses	34.8	36.2	+1.3

1H FY2017	1H FY2018	Change
Non-operating profit/loss*	0.9	1.3	+0.4

Personnel expenses	8.3	8.7	+0.3
Equipment expenses	5.3	5.1	▲0.2
Interest expenses	3.6	4.1	+0.4
Credit-related costs	▲0.3	0.1	+0.4

Ordinary profit

18.8

19.6

+0.8

* Excluding credit-related costs