Consolidated Financial Results for the Three Months of Fiscal Year Ending March 31, 2021 August 5, 2020
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Consolidated Financial Results For the Three Months of Fiscal Year Ending March 31, 2021 August 5, 2020 All Rights Reserved, Copyright © Tokyo Century Corporation 1. Financial Highlights Financial Highlights 4 International Business 1 Business Results of CSI Leasing 27 Ordinary Income by Operating Segment & ROA 5 International Business 2 28 Balance of Segment Assets by Operating Segment 6 Initiatives Utilizing Joint Crediting Mechanism (JCM) Change of Global Assets Ratio 7 Business Alliance with NTT in All Four Operating Segments 29 FY2020 Consolidated Results Forecast 8 2. Results by Operating Segment 4. New Fourth Medium-Term Management Plan Results of Equipment Leasing 10 The New Fourth Medium-Term Management Plan 31 Results of Mobility & Fleet Management 11 Highlight 1 - Management Indicator Balance of Segment Assets and Transaction Volume 12 The New Fourth Medium-Term Management Plan 32 in Mobility & Fleet Management Highlight 2 - Shareholder Returns Policy Results of Specialty Financing 13 Continually Evolving “Finance x Service x Business Expertise” 33 Balance of Segment Assets in Specialty Financing 14 Business Model 4 Results of International Business 15 Balance of Segment Assets in International Business 16 5. Appendix 3. Major Topics State of Income 35 Balance Sheet 36 Business Summary by Operating Segment 18 Interest-Bearing Debt 37 Major Topics by Operating Segment 19 Quarterly Changes in Results by Subsidiary 38 Equipment Leasing 1 NTT TC Leasing 20 in Mobility & Fleet Management Mobility & Fleet Management 1 Alliance Strategy: Partnership with 21 Transition of Business Portfolio 39 Advanced Mobility Solution Provider Consolidated Revenues Breakdown 40 Mobility & Fleet Management 2 NRS Updates 22 Promotion of Sustainability Management 41 Specialty Financing 1 Business Results of ACG 23 List of Materiality (Key Issues) and SDGs Specialty Financing 2 Asset Management at ACG 24 External Evaluation: Inclusion in Global Indexes 42 Specialty Financing 3 Fund Procurement at ACG 25 Major Group Companies (Domestic) 43 Specialty Financing 4 Fund Procurement for the Acquisition of ACG 26 Major Group Companies (Overseas) 44 All Rights Reserved, Copyright © Tokyo Century Corporation 2 1. Financial Highlights All Rights Reserved, Copyright © Tokyo Century Corporation 3 Financial Highlights Ordinary income increased 4.9% YoY to ¥25.1 billion (Billions of yen) FY 2019 FY 2020 FY 2020 Forecast Q1 Result Q1 Result Change % Change Announced on Achievement May 20, 2020 Rate Revenues 267.4 307.0 3 9.6 14.8% 1,200.0 2 5.6% Operating income 2 1.1 2 4.9 3 .8 17.9% 70.0 3 5.5% Ordinary income 2 3.9 2 5.1 1 .2 4.9% 75.0 3 3.5% Net income attributable to owners of parent 1 3.7 1 5.0 1 .3 9.2% 45.0 3 3.3% ROE(Net income / Shareholders' equity) *1 12.8% 10.8% -2.0pt Average foreign exchange rate (USD1) ¥110.23 ¥ 108.87 Mar. 31, 2020 Jun. 30, 2020 Change % Change Total assets 5,608.6 5,677.8 6 9.2 1.2% Balance of segment assets 4,773.0 4,739.0 - 34.0 -0.7% Shareholders' equity 554.5 559.7 5 .2 0.9% Shareholders' equity ratio 9.9% 9.9% - * Profit rates (ROE, ROA, etc.): Annualized All Rights Reserved, Copyright © Tokyo Century Corporation 4 Ordinary Income by Operating Segment & ROA Increased in Specialty Financing due to the consolidation of ACG Ordinary income* ROA (Billions of yen) FY2019 FY2020 Q1 Result Q1 Result Change 2.1% 1.9% -0.2% 2.8% 2.1% -0.7% 4.0% 2.8% -1.2% 2.5% 2.5% - 2.6% 2.1% -0.5% All Rights Reserved, Copyright © Tokyo Century Corporation 5 Balance of Segment Assets by Operating Segment Segment assets increased YoY, except International Business (Billions of yen) (A) (B) (B-A) All Rights Reserved, Copyright © Tokyo Century Corporation 6 Change of Global Assets Ratio GAlCoGbaのl 連as結se化t rにat伴io いin、cグreロaーseバdル d資ue産 to比 th率e はco4n5s%olまidでat上ion昇 o(f A前C期G末比+15pt) FY2017-FY2018 FY2019 Q3 - FY2020 Q1 (Billions of yen) Due to the consolidation of ( 45% ) ( 44% ) ( 44% ) ACG in December, 2019 global assets increased 2,099.8 2,089.4 2,074.5 approximately ¥1 trillion 255.8 278.9 267.0 USA and Europe 248.1 231.7 212.0 ( 30% ) ( 31% ) East Asia and ASEAN 1,097.1 1,027.8 249.9 243.3 Shipping, Aviation 1,595.9 1,578.9 1,595.5 263.1 and Others 219.3 565.2 584.2 Mar. 31, 2018 Mar. 31, 2019 Dec. 31, 2019 Mar. 31, 2020 Jun. 30, 2020 *US$1 = ¥113.05 US$1 = ¥110.91 US$1 = ¥107.96 US$1 = ¥109.55 US$1 = ¥108.87 * USD-JPY exchange rates applied to the company’s major overseas subsidiaries 107.96円 All Rights Reserved, Copyright © Tokyo Century Corporation 7 FY2020 Consolidated Results Forecast 2N0o1 9r年ev度is4ioQnよ toり AthCeG 連co結ns化oにlidよaるte、d利 r益es貢ul献tsを fo見re込cんasでt いanるnたoめu、n売ce上d 高on・ 各M利ay益 2予0,想 2値02を0上方修正 There is no change in FY2020 consolidated results forecast although the stagnation of economic activity and slump in consumption impacted by the spread of COVID-19 are expected to continue longer than initially expected at the time FY2020 consolidated results forecast was prepared (Billions of yen) FY 2020 Forecast FY 2019 # Result Change % Change Revenues 1 1 ,166.6 1 ,200.0 33.4 2 .9% Operating income 2 88.3 70.0 - 18.3 - 20.8% Ordinary income 3 91.1 75.0 - 16.1 - 17.7% Net income attributable to owners of 4 56.3 45.0 - 11.3 - 20.1% parent Net income per share 5 ¥524.96 ¥368.72 -¥156.24 - 29.8% Total dividends 6 ¥136 ¥136 - - Dividend payout ratio 7 2 5.9% 3 6.9% 1 1.0pt All Rights Reserved, Copyright © Tokyo Century Corporation 8 2. Results by Operating Segment All Rights Reserved, Copyright © Tokyo Century Corporation 9 Results of Equipment Leasing (Billions of yen) Major factors for change FY 2019 FY 2020 Q1 Result Q1 Result Change % Change Ordinary income Revenues 1 26.6 1 37.5 1 0.9 9% ∎ With expanding business collaborations with prime partners, Gross profit 10.1 9.4 - 0.7 -7% performance continued to be solid, although income decreased mainly due to a reactionary drop to an increase Operating income 7.1 6.7 - 0.4 -6% in re-leasing income in the same period of the previous Ordinary income 7.1 6.8 - 0.4 -5% fiscal year ROA(%) 2.1% 1.9% -0.2pt Jun. 30, Jun. 30, Change % Change Balance of segment assets 2019 2020 Segment assets 1,384.5 1,429.8 4 5.3 3% ∎ Segment assets increased YoY mainly due to an increase of information and communication equipment Ordinary income (Billions of yen) Other 7.1 -0.4 6.8 NTT TC Leasing started its operation ∎ Scheduled to post 50% of net income after taxes of NTT TC Leasing as equity in earning of affiliates from FY2020 Q2. Its income for nine months will be included in FY2020 FY2019 FY2020 Q1 Result Q1 Result All Rights Reserved, Copyright © Tokyo Century Corporation 10 Results of Mobility & Fleet Management (Billions of yen) FY 2019 FY 2020 Major factors for change Q1 Result Q1 Result Change % Change Ordinary income Revenues 83.4 85.0 1.6 2% Gross profit 17.7 17.2 -0.6 -3% ∎ NCS Operating income 4.2 3.4 -0.8 -18% Maintained the last Q1 level as a result of cost reduction and Ordinary income 4.2 3.4 -0.9 -20% others although gain on sales of vehicles declined due a stagnant used car export NCS 3.4 3.3 -0.1 -2% NRS 0.0 -0.7 -0.8 - ∎ NRS OAL 0.7 0.7 -0.0 -6% Decreased mainly due to a drop in car rental sales as a result of Others 0.1 0.1 0 .0 a fall in car rental demand for leisure and for business trip since March ROA(%) 2.8% 2 .1% - 0.7pt ∎ OAL NCS 3.7% 3 .6% -0.1pt Remained flat due to a slowdown in the number of vehicles NRS 0.4% - - delivered to customers as a result of delivery delays from OAL 1.4% 1 .2% - 0.2pt manufacturers Jun. 30, Jun. 30, Change % Change 2019 2020 Segment assets 6 07.6 6 32.5 24.9 4% Ordinary income Other (Billions of yen) 4.2 -0.9 3.4 Impact by COVID-19(NRS) ∎ Car rental sales decreased sharply YoY since March due to the state-of-emergency declaration and voluntary restrictions on crossing prefectural borders (see P22) FY2019 FY2020 Q1 Result Q1 Result All Rights Reserved, Copyright © Tokyo Century Corporation 11 Balance of Segment Assets and Transaction Volume in Mobility & Fleet Management Segment assets of all three companies increased YoY (Billions of yen) QoQ Change Mar. 31, 2017 Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2020 Jun. 30, 2019 Jun. 30, 2020 YoY Change (A) (B) (B-A) Balance of segment assets *1 470.5 531.4 605.3 641.9 619.7 638.6 18.9 -3.4 NCS 314.7 336.7 368.2 378.5 370.4 371.6 1.2 -6.9 Percentage 66.9% 63.4% 60.8% 59.0% 59.8% 58.2% NRS 33.3 41.4 47.3 52.8 50.2 52.7 2.4 -0.1 Percentage 7.1% 7.8% 7.8% 8.2% 8.1% 8.3% OAL 122.4 153.3 189.7 210.7 199.1 214.3 15.2 3.7 Percentage 26.0% 28.8% 31.4% 32.8% 32.1% 33.5% *1 Balance of segment assets in Mobility & Fleet Management as of June 30, 2020 (¥632.5 billion) = Total figures of the above three companies (¥638.6 billion) - Intercompany transaction amount (¥6.1 billion) (Billions of yen) FY 2016 FY 2017 FY 2018 FY 2019 FY 2019 FY 2020 Result Result Result Result Q1 Result Q1 Result Change % Change Transaction volume *2 188.2 209.1 227.7 224.6 55.4 41.4 -14.0 -25.2% NCS 129.1 139.8 146.3 141.7 34.2 24.7 -9.5 -27.7% OAL 59.1 69.3 81.3 82.9 21.2 16.7 -4.5 -21.3% *2 NRS’s transaction volume (purchase amount of fleet) is not included since it’s car rental business is focused on assets turnover All Rights Reserved, Copyright © Tokyo Century Corporation 12 Results of Specialty Financing (Billions of yen) Major factors for change FY 2019 FY 2020 Ordinary income Q1 Result Q1 Result Change % Change Revenues 34.3 59.7 25.4 74% ∎ Aviation Gross profit 11.5 21.3 9.8 85% Income increased mainly due to the consolidation* of ACG.