Consolidated Financial Results for the Six Months Ended September 30, 2021(Under Japanese GAAP)

(Member of Financial Accounting

Standards Foundation)

Consolidated Financial Results

for the Six Months Ended September 30, 2021

(Under Japanese GAAP)

					November 5, 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	:	November 12, 2021
Scheduled date	to commence dividend payments	:	December 6, 2021
Preparation of	supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results briefing			:	Yes (for analysts)

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

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 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
Six months ended	(¥ millions)		%	(¥ millions)	%	(¥ millions)	%	(¥ millions)	%
September	30,	2021	285,426		(20.1)	23,511	12.3	27,497	20.7		18,078	30.3
September	30,	2020	357,379		3.7	20,944	2.3	22,787	3.7		13,873	1.1
Note:	Comprehensive income For the six months ended September 30, 2021:	¥ 24,381 million	64.3%
				For the six months ended September 30, 2020:	¥ 14,840 million	8.4%

• "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 six months ended September 30, 2021 is the figure after applying the relevant accounting standards. If net sales is recognized based on conventional standards, it will be at 355.2 billion yen (0.6% decrease from the same period of the previous year).

			Basic earnings	Diluted earnings
			per share	per share
Six months	ended	(¥)	(¥)
September	30,	2021	602.58	598.75
September	30,	2020	462.79	459.57

1. Consolidated financial position

					Total assets		Net assets		Shareholders'	Net assets per share
							equity ratio
As of					(¥ millions)		(¥ millions)		%	(¥)
September	30,	2021		2,949,681		365,116		11.0	10,824.49
March	31,	2021			2,979,285		344,796		10.2	10,153.22
Reference: Shareholders' equity
As of September 30, 2021	¥ 324,764 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	－	130.00
FY2021(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 September 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 September 30, 2021

285,057 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)

Six months ended September 30, 2021 30,001,749 shares Six months ended September 30, 2020 29,978,251 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 September 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) 92,213 shares for the six months ended September 30, 2021 and 97,428 shares for the six months ended September 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. Qualitative information regarding financial results for the six months ended ………………………	4
September 30, 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 six months ended September 30, 2021
	Consolidated statements of comprehensive income	………………………	12
	for the six months ended September 30, 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 six months ended September 30, 2021

1. Explanation of operating results
   Newly executed contract volume in the six months ended September 30, 2021 totaled 643,882 million yen, down 2.8% year on year. Consolidated operating assets (after subtracting the deferred profit on installment sales) as of September 30, 2021 totaled 2,558,225 million yen, up 2,368 million yen, or 0.1%, from the end of the previous fiscal year.
   In terms of profits, the Company reported net sales of 285,426 million yen, down 20.1% year on year, operating profit of 23,511 million yen, up 12.3% year on year, ordinary profit of 27,497 million yen, up 20.7% year on year, and profit attributable to owners of parent of 18,078 million yen, up 30.3% year on year. Net sales decreased mainly due to the application of the "Accounting Standard for Revenue Recognition." If net sales is recognized based on conventional standards, it will be at 355,219 million yen, down 0.6%.
   Operating profit, ordinary profit and profit attributable to owners of parent all rose year on year to update their respective record highs for a six-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 rose 1.7% year on year to 238,457 million yen and segment operating assets increased 0.7% from the end of the previous fiscal year to 1,809,336 million yen. Segment net sales decreased 1.7% year on year to 255,602 million yen and segment profit decreased 0.4% year on year to 15,703 million yen.

Financing

Newly executed contract volume in the Financing segment fell 2.6% year on year to 405,318 million yen, and segment operating assets decreased 1.2% from the end of the previous fiscal year to 716,759 million yen. Segment net sales rose 16.9% year on year to 11,583 million yen, and segment profit increased 27.6% year on year to 9,182 million yen.

Other

Newly executed contract volume in the Other segment fell 99.1% year on year to 106 million yen, and segment operating assets decreased 3.4% from the end of the previous fiscal year to 32,130 million yen. Segment net sales fell 79.2% year on year to 18,240 million yen, and segment profit increased 7.2% year on year to 4,439 million yen.

1. Explanation of financial position
   As of September 30, 2021, operating assets totaled 2,558,225 million yen, up 0.1% from the end of the previous fiscal year. Total assets amounted to 2,949,681 million yen, down 1.0% from the end of the previous fiscal year. As of September 30, 2021, indirect procurement increased by 0.4% from the end of the previous fiscal year to 1,645,031 million yen, mainly due to an increase in short-term borrowings, and direct procurement decreased 6.2% from the end of the previous fiscal year to 742,960 million yen mainly due to decreases in commercial papers and long-term payables under securitization of lease receivables. As a result, the outstanding balance as of September 30, 2021 decreased 1.8% from the end of the previous fiscal year to 2,387,991 million yen. The direct procurement ratio was 31.1%, a decrease of 1.5 points from the end of the previous fiscal year.
   Total shareholders' equity rose 5.7% from the end of the previous fiscal year to 281,421 million yen mainly due to an increase in retained earnings. Total net assets as of September 30, 2021 totaled 365,116 million yen, up 20,319 million yen, or 5.9%, from the end of the previous fiscal year. Shareholders' equity ratio rose 0.8 points from the end of the previous fiscal year to 11.0%.

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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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