Fuyo General Lease : Announces Summary of Results for the First Three Months of the Fiscal Year Ending March 31, 2021

July 29, 2020

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, 2021

Fuyo General Lease Co., Ltd. today announced a summary of results for the first three months of the fiscal year ending March 31, 2021 (fiscal 2020). This announcement should be read in conjunction with the Consolidated Financial Report for the First Three Months of the Fiscal Year Ending March 31, 2021 (Fiscal 2020), also released today.

1. Overview of Results for the First Three Months of Fiscal 2020

(Consolidated)

Total revenues, operating profit, ordinary profit and profit attributable to the owners of a parent all exceeded the results of the same period of the previous year. Additionally, total revenues, operating profit and ordinary profit set record highs for the first 3 months.

The balance of operating assets (after deducting unrealized installment income) increased by 148 billion yen (6.2%) year-on-year to 2,532 billion yen by making Yamato Lease Co., Ltd. a consolidated subsidiary.

Summary of Consolidated Operating Results for the First Three Months of Fiscal 2020

(April 1-June 30, 2020)

（¥ millions）

	Q1 FY2020	YoY change
		Amount	%
Total revenues	179,019	14,053	8.5%
Operating profit	9,574	258	2.8%
Ordinary profit	10,219	295	3.0%
Profit attributable to	6,196	36	0.6%
owners of parent
		1

Full-year

forecast

720,000

42,000

45,000

27,000

2. Year-on-year Comparison (Consolidated)

A comparison of operating results for the first three months of fiscal 2020 with the same period of the previous fiscal year is as follows:

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

		Q1 FY2019	Q1 FY2020	YoY change
		Apr. 2019-June 2019	Apr. 2020-June 2020
				Amount		%
Total revenues	1,650	1,790	141		8.5
Total costs	1,475	1,592	117		7.9
	Interest expenses	24	26	2		10.6
Gross profit	174	198	24		13.7
Selling, general	81	103	21		26.3
and administrative expenses
	Credit-related costs	2	6	4		238.8
Operating profit	93	96	3		2.8
Non-operating income	6	6	0		6.1
	Reversal of	0	1	0		98.2
	credit-related costs
Ordinary profit	99	102	3		3.0
Extraordinary gains	(0)	(0)	(0)		－
Profit before income taxes	99	102	3		2.7
Profit attributable to owners of parent	62	62	0		0.6
Basic earnings per share	¥204.23	¥206.71
Net assets per share	¥9,204.20	¥9,297.39

Note:

Calculation of year-on-year amount and percentage changes are derived from figures that include fractions less than 100 million yen.

3. Segment Results (Consolidated)

Operating results for each segment for the first three months of fiscal 2020 were as follows.

Fiscal 2020 Q1 Consolidated Operating Results (April 1, 2020 - June 30, 2020)
			（¥100 million; amounts are rounded to the nearest 100 million yen）
					Profit
			Revenues	Costs	before	Interest	Gross profit
			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

2

For reference:

Fiscal 2019 Q1 Consolidated Operating Results (April 1, 2019 - June 30, 2019)

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

				Profit
		Revenues	Costs	before	Interest	Gross profit
		interest	expenses
				expenses
	Lease	1,127	1,000	127	13	115
	Installment Sales	91	87	4	1	3
Lease and Installment	1,218	1,087	132	13	118
Sales total
Financing	33	1	32	10	23
Other	398	364	34	0	33
	Total	1,650	1,452	198	24	174

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4. Operating Assets (Consolidated)

Total operating assets at June 30, 2020 were ¥2,532 billion, up ¥148 billion, or 6.2%, from the end of fiscal 2019 (March 31, 2020).

(¥100 million）					Lease		Installment sales		Financing & Other
					23,840		25,320
			22,628
																7,096
										6,919
			6,020
																	998
											784
				960

				17,226
		16,136
15,648

End of Fiscal 2018		End of Fiscal 2019	End of Q1 Fiscal 2020
			(June 30, 2020)

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

5. Fund Procurement (Consolidated)

The funding balance at June 30, 2020 was ¥2,463.6 billion, up ¥232.6 billion, or 10.4%, from the end of fiscal 2019 (March 31, 2020). Direct financing provided 34.4% of total funds procured.

(¥100 million）	Direct financing	Indirect financing

24,636

22,310

20,970

16,161

	14,852
13,821

8,474

7,459

7,149

Direct financing

Direct financing

Direct financing

34.4％

34.1％

33.4％

End of Fiscal 2018

End of Fiscal 2019

End of Q1 Fiscal 2020

(June 30, 2020)

Note: Lease obligations are excluded.

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6. Status of Net Assets (Consolidated)

Net assets increased 4.7 billion yen (1.5%) to 316.5 billion yen from the end of previous fiscal year. The equity ratio became 9.4% from an increase in cash and deposits to secure liquidity on hand and an increase in total assets accompanying the conversion of Yamato Lease Co., Ltd. to a consolidated subsidiary.

(¥100 million）		Net Assets					Equity Ratio
							3,118	3,165
	2,950
		10.1%
						10.0%
											9.4%

			End of Q1 Fiscal 2020
End of Fiscal 2018	End of Fiscal 2019
			（June 30, 2020）

7. Consolidated Full-year Earnings Forecast and Dividend Forecast for Fiscal 2020

The Company's consolidated full-year earnings forecast and cash dividend forecast for fiscal 2020 are unchanged from those announced on May 8, 2020.

(1) Consolidated Full-year Earnings Forecast for Fiscal 2020

（¥ millions, except per share amounts）

Total revenues

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

per share

owners of parent

Full year

720,000

42,000

45,000

27,000

¥900.84

(2) Cash Dividend Forecast for Fiscal 2020

Interim results

Year-end

Full year

Dividend per share

¥110.00

¥110.00

¥220.00

Note:

The above forecasts are based on currently available data and are subject to change due to

various factors.

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Reference: Newly Executed Contract Volume in the Lease Segment, by Equipment Type (Consolidated)

（¥100 million）

			Q1 FY2019	Q1 FY2020
	IT & Office Equipment	528		446
	Industrial Machinery	166		51
	Civil Engineering &	30		23
	Construction Machinery
	Transportation Equipment	108		85
	Medical Devices	76		51
	Commercial/Services	75		62
	Equipment
	Other	711		511
	Total	1,694		1,228
Composition
	Q1 Fiscal 2019
				IT & Office
			Other	Equipment
			31%
			42%
					Civil Engineering
	Commercial/		Industrial	&
		Construction
	Services Equipment
		Machinery	Machinery
4%
		10%	2%
	Medical Devices			Transportation
			Equipment
5%				6%

Q2 Fiscal 2020

Other	IT & Office
Equipment
42%
36%
Commercial/	Civil Engineering &
Services Equipment
	Construction
5%	Industrial Machinery
	4%	Machinery
	2%
Medical Devices	Transportation Equipment
4%		7%

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