Create New Business with Leasing
Handout for Financial Results Briefing For the First Six Months of Fiscal Year Ending March 31, 2015
November 2014
Any statements in this document, other than those of historical facts, are forward-looking statements about the future performance of
Century Tokyo Leasing Corporation and its Group companies, which are based on management’s assumptions and beliefs in light of
information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts.
All numerical terms and names presented in this report conform to the “short scale” numerical system. (i.e., “billion” = “109” and “trillion” = “1012 ”)
1 1
I. Overview of TC-Lease ····································· 2
Corporate Profile ············································ 3
Stock Information/Bond Ratings ·························· 4
Topics in the First Six Months of FY2014 ··············· 5
Major Affiliates ·············································· 6
Corporate Network ·········································· 7
II. Consolidated Financial Results for the First Six
Months of Fiscal Year Ending March 31, 2015
<Accounting Segment> ···································· 8
Financial Highlights········································· 9
Operating Results ·········································· 10
New Transaction Volume ································· 11
Breakdown of New Lease Transactions ················ 12
Balance of Operating Assets ····························· 13
Fund Procurement ········································· 14
Credit Costs ················································ 15
Financial Highlights of Major Group Companies ···· 16
Significant Management Indicators ····················· 17
III. Forecast of Consolidated Results for Fiscal Year
Ending March 31, 2015 and Profit Distributions……18
Forecast of Consolidated Results for Fiscal Year
Ending March 31, 2015……………………………...19
Profit Distributions………………………….…...…..20
IV. Results by Operating Segment ·························· 21
Balance of Operating Assets by Operating Segment · 22
1. Equipment Leasing····································· 23
2. Specialty Financing and Future Image ·············· 24
Business Model of Aircraft Financing Business ······ 25
3. Balance of Operating Assets
in International Business ································· 26
Topics I: International Business ························· 27
Topics II: International Business ························ 28
4. Automobile Financing ································· 29
Financial Highlights of Automobile Financing
Companies (full-year) ···································· 30
5. Global Assets ··········································· 31
Appendix
Financial Results ·········································· 32
Consolidated Statements of Income ···················· 33
Consolidated Balance Sheet ····························· 34
Contents
2
I. Overview of TC-Lease
3
Company Name Century Tokyo Leasing Corporation (Abbreviation: TC-Lease)
Security Code 8439
Listed Stock Exchange Tokyo Stock Exchange First Section
Date of Merger April 1, 2009
Paid-in Capital JPY34,231 Mn
Number of Employees 4,068 (Consolidated basis)
Major Shareholders Mizuho Group 35.3%
ITOCHU Corporation 25.0%
Total Number of Shares Issued 106,624,620 Shares
Market Capitalization JPY310.8 Bn
Corporate Profile As of September 30, 2014
Number of Common Stocks and Shareholders
Number of Common Stock Authorized………………..400,000,000
Number of Common Stock Issued…………………..…106,624,620
Number of Shareholders…………………………..………..…7,540
4 Stock Information/Bond Ratings As of September 30, 2014
Major Shareholders
Number of shares heldPercentage of shares
outsanding (%)
1. ITOCHU Corporation 26,656,200 25.0
2. Nippon Tochi-Tatemono Co., Ltd. 11,831,700 11.1
3. KSO Co., Ltd. 9,963,000 9.3
4. Mizuho Bank, Ltd. 4,688,030 4.4
5. Nissin Tatemono Co., Ltd. 3,537,900 3.3
6. Japan Trustee Services Bank, Ltd. (Trust accounts) 3,314,900 3.1
7. Seiwa Sogo Tatemono Co., Ltd. 2,972,650 2.8
8. Nippon Life Insurance Company 2,228,865 2.1
9. Mizuho Trust & Banking Co., Ltd.
(Retirement Allowance Trust, Orient Corporation Account)1,900,000 1.8
10. Yushu Tatemono Co., Ltd. 1,716,000 1.6
Credit Rating Agency Japan Credit Rating Agency, Ltd. (JCR) Rating and Investment Information, Inc. (R&I)
(Long-Term Senior Debt)
Rating: A+
Outlook: Stable
(Issuer Rating)
Rating: A
Outlook: Stable
(Preliminary Rating for Bonds Registered for Issuance)*
Rating: A+
Expected Issue Amount: ¥200 billion
Issue Period: Two Years Beginning February 14, 2014
(Preliminary Rating for Bonds Registered for Issuance)*
Rating: A
Expected Issue Amount: ¥200 billion
Issue Period: Two Years Beginning February 14, 2014
(Euro Medium-Term Note Program)
Rating: A+
Maximum Outstanding Amount: Equivalent of US$2 billion
(Euro Medium-Term Note Program)
Rating: A
Maximum Outstanding Amount: Equivalent of US$2 billion
Short-term
(Commercial Paper)
Rating: J-1
Maximum Outstanding Amount: ¥650 billion
(Commercial Paper)
Rating: a-1
Maximum Outstanding Amount: ¥650 billion
Long-term
Breakdown of Shareholders
Bond Ratings (As of February 14, 2014)
*Each bond will be rated by each rating company upon issuance.
Foreign investors
13.3%
Individuals
5.0%
Financial institutions
22.0%
Securities companies
0.9%
Other domestic
corporations
58.0%
Treasury shares
0.8%
5 Topics in the First Six Months of FY2014
Decided to establish aircraft leasing
joint ventures with CIT Group Inc.,
a leading provider of commercial
lending and leasing services in the
U.S.
Included TISCO Tokyo Leasing Co., Ltd., a local subsidiary in Thailand,
into the Company’s scope of consolidated subsidiary 4
5
2014
9
8
7
6
10
Issued the 7th and the 8th unsecured straight bond (JPY 40 billion)
Commenced floating solar power plant business
Decided to acquire the shares of BPI Leasing
Corporation, an affiliate of Bank of the Philippine
Islands, one of the largest banks in the Philippines
Decided to acquire a stake in a new leasing company to be established
by Suzhou government-affiliated company in China
Steadily increased ordinary income approximately 30 billion yen,
proceeded to 52.4% of its annual plan
Promoted alliance with companies overseas and plans to expand
its global network to 29 operating bases
1
2
Major Affiliates 6 As of September 30, 2014
TC-Lease
Nippon Car Solutions Co., Ltd. <NCS> Automobile leasing 59.5% Nippon Telegraph and Telephone Corporation (NTT): 40.5%
Orico Auto Leasing Co., Ltd. <OAL> Automobile leasing for individuals 50% Orient Corporation: 50%
Nippon Rent-A-Car Service, Inc. <NRS> Rental car services business 60.2%
Fujitsu Leasing Co., Ltd. <FLC> IT-related equipment leasing business 80% Fujitsu Ltd.: 20%
IHI Finance Support Corporation <IFS> Financing business and general leasing 66.5% IHI Corporation: 33.5%
S.D.L Co., Ltd. <SDL> General leasing 90% Shiseido Co., Ltd.: 10%
TCI Finance Corporation Financing 60% ITOCHU Corporation: 40%
ITEC Leasing Co., Ltd. General leasing 85.1% NHK (Japan Broadcasting Corporation) Group: 14.9%
TC Property Solutions Corporation Property management 100%
TRY, Inc. Refurbishment of PCs 100%
TC Agency Corporation Non-life insurance agent 100%
TC-Lease
Century Tokyo Leasing China Corporation Mainland China: 8 bases 80% ITOCHU Group: 20%
Century Tokyo Factoring China Corporation Shanghai 100%
Century Tokyo Leasing (Singaporre) Pte. Ltd. Singapore 100%
Century Tokyo Leasing (Malaysia) Sdn. Bhd. Malaysia 100%
PT. Century Tokyo Leasing Indonesia Indonesia 85% ITOCHU Group: 15%
PT. TCT Indonesia Indonesia 100%
TISCO TOKYO LEASING CO., LTD. Thailand 49% TISCO FINANCIAL GROUP: 49%
President Tokyo Corporation Taiwan: 4 bases 49% UNI-PRESIDENT ENTERPRISES Group: 51%
Tong-Sheng Finance Leasing Co., Ltd. Suzhou 49% UNI-PRESIDENT ENTERPRISES Group: 51%
Century Tokyo Leasing (USA) Inc. U.S.A. 100%
GA Telesis, LLC U.S.A. 20%
TC Aviation Capital Ireland Limited Ireland 100%
Overseas (Asia) Region Shareholders
ShareholdersDomestic Main Business Operations
*
*
*
* Voting Shares
Corporate Network 7
Europe London
Dublin
U.S.A. New York
Florida
Has 25 operating bases, to be expanded to 29 locations by the end of December 2014
East Asia
New offices to be established in China (Suzhou New District), the Philippines (BPI), Ireland,
and the U.S.A. (CIT)
As of September 30, 2014
China
Shanghai,
Dalian, Wuhan,
Beijing, Chengdu,
Qingdao, Guanzhou
Suzhou, Hong Kong
Factoring Company
Shanghai
Automobile Leasing
Company
Suzhou
Taiwan
Taipei, Taichung,
Tainan, Kaohsiung
ASEAN Thailand
Malaysia
Singapore
Indonesia (2)
South Asia India
8
II. Consolidated Financial Results
for the First Six Months of Fiscal Year
Ending March 31, 2015
<Accounting Segment>
9 Financial Highlights
Shows steady progress in ordinary income as it has reached 52.4% of the annual plan,
going further than the standard (50.0%).
JPY Bn
FY2013/2Q FY2014/2Q
(13/4-9) (14/4-9) ChangeAnnounced on
May 8, 2014
Achievement
Rate
Revenues 359.7 438.5 78.8 21.9% 860.0 51.0%
( Volume of New Transactions 600.9 632.5 31.6 5.3% )
Operating Income 23.6 28.9 5.4 22.8% 56.3 51.4%
Ordinary Income 26.5 29.9 3.4 12.6% 57.0 52.4%
Net Income 17.6 16.6 -1.0 -5.8% 33.3 49.7%
FY2013 FY2014/2Q
Change
Total Assets 2,884.8 2,918.3 33.6 1.2%
( Cash and Cash Equivalents 79.8 93.3 13.5 16.9% )
Balance of Operating Assets 2,646.8 2,679.9 33.1 1.3%
Net Assets 285.5 306.4 20.9 7.3%
Equity Ratio 8.8% 9.3% 0.5pt -
Performance Outlook for
Year Ending March 31, 2015
% Change
% Change
Note: Operating assets include business guarantees.
Operating Results 10
JPY Bn
FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q
(10/4-9) (11/4-9) (12/4-9) (13/4-9) (14/4-9) Change % Change
Revenues 1 362.4 348.9 344.2 359.7 438.5 78.8 21.9%
Costs 2 326.6 313.1 310.0 318.9 376.7 57.8 18.1%
Interest Expenses 3 7.9 6.0 5.2 4.4 4.8 0.4 9.3%
Gross Profit on Revenues 4 35.8 35.8 34.2 40.9 61.9 21.0 51.5%
SG&A Expenses 5 15.3 14.2 13.7 17.3 32.9 15.7 90.6%
Allowance for Doubtful Accounts 6 1.1 -0.7 -1.2 -0.8 -0.5 0.3 -
7 20.4 21.6 20.5 23.6 28.9 5.4 22.8%
8 2.1 2.8 3.0 3.0 0.9 -2.0 -68.6%
Ordinary Income 9 22.5 24.4 23.5 26.5 29.9 3.4 12.6%
Extraordinary Gains and Losses 10 -1.9 -2.0 -0.2 0.4 0.2 -0.3 -63.4%
11 20.6 22.5 23.4 26.9 30.0 3.1 11.4%
Net Income 12 11.7 13.3 14.4 17.6 16.6 -1.0 -5.8%
#
Operating Income
Non-operating Income
Income Before Extraordinary
Items and Income Taxes
Ordinary income was 29.9 billion yen, achieved the record high for the first half and increased
3.4 billion yen from the same period of the previous fiscal year due to increase in revenues and
profits by consolidation of automobile financing companies.
New Transaction Volume 11
JPY Bn
FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q
% Change
352.6 495.4 544.3 600.9 632.5 5.3%
Leasing 214.6 239.4 272.6 300.5 290.1 -3.4%
Installment Sales 30.6 48.4 46.3 55.6 55.1 -0.9%
Financing 107.4 207.6 225.5 244.8 287.3 18.8%
FY2010 FY2011 FY2012 FY2013 FY2014 Plan
% Change
893.9 1,072.7 1,178.8 1,409.4 1,450.0 2.9%
Leasing 476.2 507.4 591.0 690.5
Installment Sales 83.0 92.2 98.5 112.0
Financing 334.7 473.1 489.3 606.9
39.4% 46.2% 46.2% 42.6% 43.6%
Note: Financing includes Other businesses.
(Summary of the First Half)
(Summary of the Fiscal Years)
New Transactions Volume [B]
Achievement rate against
the result or plan [A/B]
New Transactions Volume [A]
12 Breakdown of New Lease Transactions
TC-Lease Group (Exclude Overseas Subsidiaries) JPY Bn
ICT-related OfficeIndustrial/
Machine ToolsConstruction Transportation Medical
Commerce/
ServicesOthers Total
Overseas
SubsidiariesTotal
111.8 7.2 15.6 4.3 84.0 4.5 18.8 10.6 256.8 33.3 290.1
Percentage 43% 3% 6% 2% 33% 2% 7% 4% 100%
-15.9% -15.9% -52.9% -21.8% 35.8% -7.0% 2.1% -56.0% -11.2% 198.9% -3.4%
Reference: Leasing Industry (Announced by Japan Leasing Association) JPY Bn
ICT-related OfficeIndustrial/
Machine ToolsConstruction Transportation Medical
Commerce/
ServicesOthers Total
613.3 198.8 226.1 64.5 273.9 92.2 285.9 195.1 1,949.8
Percentage 31% 10% 12% 3% 14% 5% 15% 10% 100%
-12.8% -3.1% -32.8% -22.0% -0.2% -27.7% -2.1% -6.2% -12.6%
FY2014/2Q
YoY Percentage
FY2014/2Q
YoY Percentage
Balance of Operating Assets 13
JPY Bn
2011/3 2012/3 2013/3 2014/3 2014/9
% Change
2,049.8 2,143.2 2,276.6 2,646.8 2,679.9 1.3%
1,383.7 1,375.8 1,473.9 1,783.9 1,785.8
Percentage 67.5% 64.2% 64.7% 67.4% 66.6%
Installment Sales 191.8 188.0 201.6 213.7 224.3
Percentage 9.4% 8.8% 8.9% 8.1% 8.4%
Financing 474.3 579.5 601.2 649.2 669.8
Percentage 23.1% 27.0% 26.4% 24.5% 25.0%
Note: Financing includes balance of business guarantees and balance of operating assets from Other businesses.
2011/3 2012/3 2013/3 2014/3 2014/9
2,184.6 2,260.4 2,465.8 2,884.8 2,918.3
178.8 201.3 233.7 285.5 306.4
7.8% 8.4% 9.0% 8.8% 9.3%
Balance of Operating Assets
2015/3
Plan
2,800.0
~2,850.0
Net Assets
Equity Ratio
0.1%
5.0%
3.2%
Total Assets
Leasing
Fund Procurement 14
JPY Bn
2011/3 2012/3 2013/3 2014/3 2014/9
Change
Balance of Interest Bearing Debt 1,741.9 1,783.2 1,939.2 2,211.7 2,278.9 67.2
Commercial Paper 630.3 631.9 648.9 739.3 751.6 12.3
MTN 1.5 4.2 29.7 36.5 42.7 6.2
Corporate Bond 0.0 40.0 95.0 142.0 157.1 15.1
Securitized Lease Assets 72.1 57.7 54.7 66.0 67.0 1.0
Short-term Borrowings 281.0 285.7 340.7 415.2 446.9 31.7
Long-term Borrowings 757.0 763.7 770.2 812.6 813.6 1.0
54.1% 54.2% 54.9% 55.9% 55.9% -
40.4% 41.1% 42.7% 44.5% 44.7% 0.2pt
JPY Bn
FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q
Change
7.9 6.0 5.2 4.4 4.8 0.4Interest Expenses
Short-term Funding Ratio
Direct Funding Ratio
Credit Costs 15
(First Half Summary) JPY Bn
FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q
% Change
Credit Costs (amount disposed) 1.1 -0.6 -1.2 -1.1 -0.5 0.6
(Fiscal Year Summary)
FY2010 FY2011 FY2012 FY2013
Credit Costs (amount disposed) 1.0 0.0 -1.0 -0.4
Reference: Business Failures in Japan
FY2010 FY2011 FY2012 FY2013 FY2014
Change
11,496 11,435 10,710 10,102 4,750
1st Half 5,751 5,726 5,439 5,320 4,750 -570
2nd Half 5,745 5,709 5,271 4,782
JPY Bn
4,557.4 3,916.5 2,929.1 2,747.4 914.5
1st Half 2,631.9 1,885.5 1,707.7 1,755.5 914.5 -841.0
2nd Half 1,925.5 2,031.0 1,221.5 991.9
Source: TEIKOKU DATABANK
Number of Business Failures
Number of Business Failures
Note: Figures above partly being included in sales costs.
Negative figures represent reversal of allowance for doubtful receivables.
Financial Highlights of Major Group Companies 16
JPY Bn
FY2014/2Q
Figures represent changes from the same
period of the previous fiscal year.Change Change Change Change Change
Revenues 256.7 20.5 81.4 60.9 59.0 1.6 13.3 2.4 438.5 78.8
Operating Income 18.0 0.2 5.0 3.9 1.1 0.3 1.5 0.5 28.9 5.4
Ordinary Income 20.6 2.3 5.1 4.1 1.1 0.2 1.6 0.5 29.9 3.3
Net Income 13.3 2.5 3.2 2.7 0.7 0.2 1.2 0.4 16.6 -1.0
2014/9
Operating Assets(Including business guarantees)
1,736.3 11.7 272.6 4.5 274.8 -20.9 174.6 47.9 2,679.9 33.1
Figures represent changes from the end of
the previous fiscal year.
Note: For NCS, figures in "Change" are comparison with former Tokyo Auto Leasing's results from FY2013/2Q.
Total in
consolidate basis
Overseas
subsidiaries
TC-Lease
(Non-consolidated)
Nippon Car Solutions
(NCS) *1
Fujitsu Leasing
(FLC)
17 Significant Management Indicators
TC-Lease’s attitude toward significant management indicators
1. Take another step forward in ROA,
which is currently 2.2%.
2. Stretch EPS at the same pace as
present
3. Far exceeds the industry average
of approximately 8% in ROE
Strengthen ROA, EPS, ROE in a
well-balanced manner
Five-Year Summary of Significant Management Indicators
FY2009 FY2010 FY2011 FY2012 FY2013
ROA (%) 1.6 2.2 2.2 2.1 2.2
EPS (Yen) 239.57 221.80 245.82 272.32 311.64
ROE (%) 18.5 14.8 14.5 14.0 13.9
Ordinary Income(Billions of yen)
33.4 44.2 46.3 46.3 55.2
Equity Ratio(Billions of yen)
150.4 170.0 190.9 222.3 252.4
Operating Assets(Billions of yen)
1,962.0 2,049.8 2,143.2 2,277.2 2,646.8
*1 Operating assets include business guarantees.
*2 ROA= Ordinary income/[(balance of operating assets at the beginning of the period +
balance of operating assets at the end of the period)/2]
18
III. Forecast of Consolidated Results
for Fiscal Year Ending March 31, 2015
and Profit Distributions
19 Forecast of Consolidated Results
for Fiscal Year Ending March 31, 2015
No revision has been made on the forecast of consolidated results
announced on May 8, 2014.
JPY Bn
FY2013
828.6 860.0 31.4 3.8%
51.4 56.3 4.9 9.5%
55.2 57.0 1.8 3.3%
33.1 33.3 0.2 0.8%
Revenues
Operating Income
Net Income
FY2014 Forecast
Change % Change
Ordinary Income
20 Profit Distributions
Revised dividend plan for FY2014 Former Century Leasing System
Consecutive increases in dividend since listed in FY2004 to FY2008
Former Tokyo Leasing
11 years of consecutive increases in dividend since FY1998 to FY2008
TC-Lease
28
4852
44
64
32
40
26
0
10
20
30
40
50
60
70
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
(Forecast)
Yen
FY2013
Announced
on Nov. 4
Announced
on May 8Change
Change from
the previous
year
311.64 314.74 314.74 - 3.10
52.00 64.00 56.00 8.00 12.00
Interim Dividend 26.00 32.00 28.00 4.00 6.00
Year-end Dividend 26.00 32.00 28.00 4.00 6.00
16.7% 20.3% 17.8% 2.5pt 3.6pt
Net Income per Share
Cash Dividend per Share
Dividend Payout Ratio
FY2014 Forecast
21
IV. Results by Operating Segment
22 JPY Bn
2011/3 2012/3 2013/3 2014/3 2014/9 Future Image
(In three years)
Balance of Operating Assets 2,049.8 2,143.2 2,276.6 2,646.8 2,679.9 3,300.0
1,518.7 1,502.8 1,506.5 1,546.0 1,507.7 1,500.0
Percentage 74.2% 70.1% 66.2% 58.4% 56.3% 45.5%
Specialty Financing 353.5 432.8 520.0 570.0 603.4 1,000.0
Percentage 17.2% 20.2% 22.8% 21.5% 22.5% 30.3%
International Business 90.8 104.5 133.4 170.0 196.6 300.0
Percentage 4.4% 4.9% 5.9% 6.4% 7.3% 9.1%
Automobile Financing 86.8 103.1 116.7 360.8 372.2 500.0
Percentage 4.2% 4.8% 5.1% 13.6% 13.9% 15.2%
Note: Balance of operating assets includes business guarantees.
Equipment Leasing
Balance of Operating Assets
by Operating Segment
Equipment Leasing Specialty Financing
Domestic Sales Business Dep. (General leasing, installment and sales)
Domestic affiliates (Excluding three domestic automobile
financing companies)
Nippon Car Solutions Co., Ltd. (Automobile leasing mainly for corporate
customers)
Orico Auto Leasing Co., Ltd. (Automobile leasing for individual customers)
Nippon Rent-A-Car Service, Inc. (Rental car services business)
International Business
East Asia & ASEAN
Business Dep. (Affiliates in Asia)
Global Business Dep. (An affiliate in the U.S., transactions
with global vendors)
Finance Business Dep. ( Special fields such as ship, aircraft,
environment and energy, medical and
healthcare, etc.)
Real Estate Finance Dep. (Real estate financing and leasing)
Automobile Financing
Note: Balance of operating assets include business guarantees.
JPY Bn
FY2011 FY2012 FY2013
% Change *1
4,844.2 5,134.8 5,551.9 14.6%
484.4 570.0 660.7
Percentage 10.0% 11.1% 11.9%
Sumitomo Mitsui F&L 518.3 549.4 688.4
Percentage 10.7% 10.7% 12.4%
Mitsubishi UFJ Lease 489.3 544.3 638.5
Percentage 10.1% 10.6% 11.5%
ORIX 450.5 487.8 588.5
Percentage 9.3% 9.5% 10.6%
Other 2,901.7 2,983.3 2,975.8
Percentage 59.9% 58.1% 53.6%
30.6%
2.6%
Lease transaction volume
in Japan
TC-Lease36.4%
32.8%
30.5%
Leading domestic leasing market
1. Equipment Leasing 23
1
1 1
2
2
2
3
3 3
4 4 4
(Company data, Nikkei estimates)
Figures in boxes represent ranks throughout the fiscal year
Support for Investment in Cutting-edge
Facilities Using Lease Methods (METI)
【Reference: Cases selected for the measure】
Total number of contracts: 76
Total number of companies to contract: 37
Total number of leasing companies: 6 (TC-Lease group as 1)
Maximum value of compensation: approximately 900 million yen (equivalent
to 5% of anticipated value of capital investment )
Company(number of contracts) Installed Facility
euglena Co., Ltd. (1) Food manufacturing facility
IHI Corporation (5) Transportation equipment and parts
manufacturing facility
Shindengen Electric Manufacturing
Co., Ltd. (1)
Experiment equipment or measuring
instrument
Bit-isle Inc. (2) Equipment for telecommunication
ICHIKOH INDUSTRIES, LTD. (12) Manufacturing facility of transportation
machinery and appliances
Note: List of contracted cases for the measure (contracted during March 2014- September 2014)
【Production facility installed to euglena Co., Ltd.】 【Cases selected from TC-Lease Group】
Number of contracts: 21
Number of companies to contract: 5 Note: Above include the case of IHI Finance Support.
*1 Changes are comparison with FY2011
2. Specialty Financing and Future Image 24
Environment & Energy
Kyocera TCL Solar LLC operates eleven
mega solar power plants (21.6MW),
generating revenues of 300 million yen for
FY2014/2Q. Commenced floating solar power
plant business with Ciel et Terre, a French company.
Environment & Energy already has practicable
pipelines which volume equals to 100 billion yen.
Ship financing business shows steady
development mainly with ship owners abroad.
Established joint venture with CIT Group Inc.,
a U.S. company. Planning to invest 200 billion
yen two years in the future.
Provides one-stop shop in the aircraft business
through alliance with GA Telesis, LLC.
Ship and Aircraft Real Estate
Building healthy assets through
strengthening partnerships with
blue-chip companies
Improving profitability by establishing
its unique business domain
JPY Bn
2011/3 2012/3 2013/3 2014/3 2014/9 Future Image
(In three years)
353.5 432.8 520.0 570.0 603.4 1,000.0
Ship and Aircraft 60.1 88.4 130.1 193.9 226.6
Percentage 17.0% 20.4% 25.0% 34.0% 37.6%
Environment & Energy 7.4 7.3 7.9 13.5 15.3
Percentage 2.1% 1.7% 1.5% 2.4% 2.5%
Real Estate 208.0 233.4 280.7 245.7 251.6
Percentage 58.8% 53.9% 54.0% 43.1% 41.7%
Others * 78.0 103.7 101.3 116.9 109.9
Percentage 22.1% 24.0% 19.5% 20.5% 18.2%
Note: Others include assets from factoring business, securitization of receivables, medical and healthcare field, etc.
Balance of
Operating Assets
Business Model of Aircraft Business 25
Sourcing Stock Sale / Disposal
Airlines,
Aircraft
Leasing
Companies
Past
JOL Fee
Present
JOL Fee
Income from Finance transaction
Income from operating lease
Future
JOL Fee income
Financing spread income
Operating Lease Fee income
Re-sale income (middle/exit plan)
etc.
Business model innovation to boost up revenues (Stock Business to Stock and Flow Business)
TC-CIT AVIATION
JOL Investors
Secondary Market (Airlines, Aircraft leasing
companies)
Portfolio
Individual
sourcing
Fee Income
Re-Sale
Income
Stock Business
Income
Equity: 20%
Equity: 70%
Pre-Owned
Aircraft
Market
3. Balance of Operating Assets
in International Business
Steady Growth in Operating Assets
Operating assets in International Business
Local subsidiaries in East Asia and ASEAN
region
East Asia & ASEAN Business Department
Local subsidiary in U.S., Japan desk in India
Promotion of finance for global vendors
Global Business Department
Vendor finance is...
a leasing method that benefits customers by efficient
installations of leased property while vendors may enjoy
sales promotion effect.
Leasing companies compose lease programs to certain extent
with such vendors as manufacturers and dealers.
Keyword
Notes: Operating assets from ships and aircraft business are not included.
Operating assets from equity-method affiliates are included.
73.195.6
129.3 131.350.7
61.7
72.4 76.0
123.8
157.3
201.7 207.3
50.0
100.0
150.0
200.0
250.0
2012/3 2013/3 2014/3 2014/9
26
JPY Bn
Topics I: International Business
International Business Automobile Financing
Established Tong-Sheng Finance Leasing Co., Ltd.
(abbreviation: Tong-Sheng) as an automobile
financing company in China
Uni-President Group
(Taiwan)
TC-Lease
(Japan)
President Tokyo Corporation
(Taiwan)
Tong-Sheng
(Suzhou, China)
【General Information of Tong-Sheng】 Establishment: April 2014
Location: Suzhou, Chiangsu, PRC
Paid-in Capital: USD 100 million
Consolidated an Overseas Subsidiary in Thailand
Consolidated an overseas subsidiary in Thailand TISCO Tokyo
Leasing Co., Ltd., (abbreviation: TTL) which used to be an equity-
method affiliate on May 26, 2014.
【General Information of TTL】 Location: Bangkok, Thailand
Paid-in Capital: THB60,000 thousand
Establishment: April 1993
Shareholders: Century Tokyo Leasing Corporation (49%)
TISCO Financial Group Pcl. (49% by TISCO)
Sompo Japan Nipponkoa Insurance Brokers(Thailand)Co., Ltd.(2%)
TTL became our consolidated subsidiary because it met the
control basis of “Accounting Standard for Consolidated
Financial Statements”, as TC-Lease selected half of board of
directors at TTL.
TTL is continuously providing equipment leasing for local
companies while utilizing the customer base given by TISCO
Group and Japanese companies. Expanding its business base by
focusing on automobile leasing and vendor financing.
Promoted business for Uni-President Enterprise Corporation
Group, Taiwanese companies and Japanese companies in
cooperation with President Tokyo Corporation and Century
Tokyo Leasing China Corporation
51% 49%
100%
27
International Business
28 Topics II: International Business
International Business
Acquired 49% of the shares of BPI Leasing Corporation from BPI
and included the joint venture to the scope of TC-Lease’s
consolidation as an equity-method affiliate.
Expand Business to the Philippines through a Joint Venture
with Bank of the Philippine Islands (“BPI”),
One of the Philippines’ Largest Financial Institutions
New Name of the Company (Rename BPI Leasing Corporation):
BPI Century Tokyo Lease & Finance Corporation
Place of Business: Manila, the Philippines
Paid-in Capital: PHP 80,899 thousand (equivalent to approximately
JPY 200 million)
Shareholders:
TC-Lease (49%), BPI (51%)
Company Representative:
To be dispatched from TC-Lease
Principal Business:
General leasing and financing
Overview of the Joint Venture:
BPI Century Tokyo
Lease & Finance Corporation
51%
stake
49%
stake
The new company plans to double its outstanding balance of operating
assets of 26 billion yen in three years by integrating strengths of TC-
Lease and BPI
Suzhou New District Hi-Tech Industrial Co., Ltd., (*1) the parent of the
new company, is a government-affiliated company listed on SSE,
representing Suzhou region while government of Suzhou New District
(*2) takes over 40% of its stake.
Suzhou New District Hi-Tech Industrial Co., Ltd., decided to establish
the new company to provide leasing services for facilities in Suzhou
New District (*3) and companies in the district.
Overview of the New Company:
(1) Company Name: To be determined
(2) Location: Suzhou New District, Suzhou, Jiangsu, PRC
(3) Business: Finance leasing
(4) Paid-in Capital: CNY300 million (approximately JPY5 billion)
(5) Month of Foundation: November 2014 (planned)
(6) Shareholders: Century Tokyo Leasing Corporation (20%), Suzhou New
District Hi-Tech Industrial Co., Ltd. (50%), Suzhou High-Tech Venture
Capital Group Co., Ltd. (25%), Other (5%)
International Business
28
Acquire a Stake in a New Leasing Company
Established by Government-affiliated Company in China
*1 Suzhou New District Hi-Tech Industrial Co., Ltd. operates diverse businesses through its
group companies, including real estate development in Suzhou City, theme park management,
infrastructure and environmental businesses such as sewage facility management, and supports
businesses in the medical sector.
*2 The government of Suzhou New District is an Administrative Committee of Suzhou
National New & Hi-tech Industrial Development Zone.
*3 Suzhou New District aims to develop engineering industry. The district is an industrial
zone with 15,000 companies including global firms, which area has 258 square kilometers
and population of roughly 750,000. The district has residence and theme park.
29 4. Automobile Financing
Automobile Financing Companies (consolidated subsidiaries)
As of September30, 2014
2014/3 2014/9 Change
Guarantees and
Consolidated adjustment― -0.6 -0.5
Autobobile Leasing
Mainly for Corporate
Customers
Nippon Car Solutions, Co., Ltd.
(NCS)
TC-Lease 59.5%472
NTT 40.5%
(47)included in NCS
Voting ShareVehicles under
management
(thousands)
5.5Orico 50%
Rental Car
Services
Nippon Rent-A-Car Service, Inc.
(NRS)
TC-Lease 60.2% 41
(9)included in NCS
Other 39.8%
Automobile Leasing
for Individual
Customers
Orico Auto Leasing Co., Ltd.
(OAL)
TC-Lease 50%
-0.1
Subtotal
(domestic)504
Balance of Operating Assets (JPY Bn)
26.3 27.7 1.3
360.8 372.2 11.4
268.2 272.6 4.5
66.9 72.4
30 Financial Highlights of Automobile Financing Companies (full-year)
JPY Bn
Figures represent changes from the same
period of the previous fiscal yearFY2013 Change FY2013 Change FY2012/2Q Change
Revenues 162.2 6.4 29.2 6.8 25.2 0.7
Operating Income 8.6 1.0 0.8 0.1 1.3 -0.1
Ordinary Income 8.6 1.0 0.8 0.1 1.2 0.0
Net Income 5.3 0.8 0.5 0.1 0.8 0.1
2014/3 Change 2014/3 Change 2013/9 Change
Vehicles under Management
(thousand) 456 18 44 9 38 1
Balance of Operating Assets 268.2 17.5 66.9 13.4 30.2 1.2
OAL NRSNCS *1
*3 *3
*2
*4
*1 Includes results of former Tokyo Auto Leasing Co., Ltd.
*2 Based on non-consolidated full-year results
*3 Includes numbers of vehicles which OAL and NRS delegate management to NCS
*4 Shows balance of operating assets NRS manages
Shows full-year results of each automobile financing companies
Showing different figures from the result of FY2014 2Q due in timing of consolidation and
difference in accounting period
31 5. Global Assets
Global assets, assets from International Business and Specialty Financing particularly
ship and aircraft finance, have been doubled in the past two years and half
(7.6%)
(10.0%)
(12.2%)
(13.5%) (Figures in parentheses represent ratio of global assets in total operating assets)
Aircraft business has grown eight
times in the past two years and a
half. Furthermore, it is expected to
triple in volume in three years in the
future by the contribution such as
the joint venture with CIT Group
Inc., the U.S. company.
32
Financial Results
Appendix
33 Consolidated Statements of Income
Millions of Yen *1 Details of Non-operating income and losses Millions of Yen
Value %
Leases 313,812 379,775 65,962 21.0 (Non-operating income)
Installment Sales 33,390 38,240 4,850 14.5 Interest income 31 69 38
Financing 7,863 10,958 3,095 39.4 Dividend income 522 557 35
Other 4,668 9,568 4,899 104.9 Equity in earnings of affiliates 2,757 177 (2,579)
Total revenues 359,735 438,543 78,808 21.9 Foreign exchange gains 506 998 492
Leases 279,528 328,831 49,303 17.6 Other 572 253 (318)
Installment Sales 31,004 35,663 4,658 15.0 Total non-operating income 4,390 2,057 (2,332)
Financing 427 534 106 24.8 (Non-operating expenses)
Other 3,549 6,854 3,305 93.1 Interest expense 286 309 22
Interest expense 4,377 4,782 405 9.3 Expenses on derivatives
other than for trading or hedging 1,038 675 (362)
Total costs 318,888 376,667 57,779 18.1 Other 106 142 36
Gross profit 40,847 61,876 21,029 51.5
Personnel expenses 11,065 19,143 8,077 73.0 Total non-operating expenses 1,431 1,127 (303)
General expenses 7,046 14,292 7,246 102.8 *2 Details of Extraordinary income and losses Millions of Yen
Credit costs (824) (495) 329 (39.9)
SG&A expenses 17,286 32,940 15,653 90.6
Operating income 23,560 28,935 5,375 22.8 (Extraordinary income)
Non-operating income 4,390 2,057 (2,332) (53.1) *1 Gain on bargain purchase 1,411 150 (1,261)
Non-operating expenses 1,431 1,127 (303) (21.2) *1 Gain on sale of investments in securities 381 27 (354)
Ordinary income 26,518 29,865 3,346 12.6 Other 55 9 (46)
Extraordinary income 1,848 187 (1,661) (89.9) *2 Total extraordinary income 1,848 187 (1,661)
Extraordinary losses 1,431 34 (1,396) (97.6) *2 (Extraordinary loss)
Income before income taxes 26,936 30,017 3,081 11.4 Loss on retirement of non-current assets 4 14 10
Total income taxes 8,846 11,188 2,341 26.5 Loss on valuation of golf club membership - 9 9
Income before minority interests 18,089 18,829 739 4.1 Impairment loss 1,219 - (1,219)
Minority interests in income 506 2,274 1,767 349.2 Other 207 10 (197)
Net income 17,582 16,555 (1,027) (5.8) Total extraordinary losses 1,431 34 (1,397)
Note: Amounts less than one million yen are omitted.
Account FY2013/2Q FY2014/2Q Change
Account FY2013/2Q FY2014/2QChange
Account FY2013/2Q FY2014/2Q Change
Consolidated Balance Sheet 34
Value % Value %
Cash on hand and in banks 79,840 93,324 13,484 17 Notes and accounts payable-trade 222,505 159,656 (62,848) (28)
Accounts receivable - installment sales 225,937 236,720 10,783 5 Short-term borrowings 415,220 446,904 31,684 8
Lease receivables and investment assets 1,461,053 1,443,251 (17,802) (1) Current portion of bonds 71,616 93,800 22,184 31
Loans receivable 474,155 501,656 27,500 6 Current portion of long-term debt 281,763 291,020 9,257 3
Operating investment securities 111,965 108,261 (3,704) (3) Commercial Papers 739,300 751,600 12,300 2
Other operating assets 5,097 5,000 (97) (2) Payables under fluidity lease receivables 63,398 62,701 (697) (1)
Accounts receivable - lease 17,612 16,078 (1,534) (9) Current portion of long-term payables under fluidity lease receivables 628 1,082 454 72
Short-term investment securities 25,140 4,360 (20,780) (83) Accrued income taxes 14,781 10,215 (4,566) (31)
Inventories 1,455 1,494 39 3 Deferred tax liabilities 2,539 2,534 (4) (0)
Deferred tax assets 4,377 4,275 (101) (2) Deferred profit on installment sales 12,217 12,411 193 2
Other current assets 62,191 61,600 (591) (1) Allowance for bonuses 2,096 2,538 442 21
Allowance for doubtful accounts (3,410) (3,092) 318 - Allowance for directors' bonuses 168 93 (75) (45)
Other provision 328 436 107 33
Other current liabilities 47,754 53,055 5,301 11
2,465,415 2,472,930 7,515 0 1,874,318 1,888,051 13,732 1
Leased assets 322,535 342,282 19,746 6 Bonds payable 106,905 106,002 (903) (1)
Advances for purchases of property for lease 586 2,866 2,280 389 Long-term debt 530,831 522,561 (8,269) (2)
Other operating assets 6,770 6,557 (212) (3) Long-term payables under fluidity lease receivables 2,009 3,242 1,232 61
Own assets in use 8,061 9,295 1,233 15 Deferred tax liabilities 918 3,317 2,398 261
有形固定資産合計Total property and equipment 337,954 361,002 23,047 7 Allowance for directors' retirement benefits 291 407 115 40
Computer programs leased to customers 290 269 (21) (8) Allowance for automobile inspection costs 951 956 5 1
Goodwill 4,871 4,466 (404) (8) Net defined benefit liability 7,170 7,611 441 6
Other intangible assets 5,416 5,439 23 0 Other long-term liabilities 75,890 79,784 3,893 5
無形固定資産合計Total intangeble assets 10,578 10,175 (403) (4) 724,969 723,883 (1,086) (0)
Investments in securities 42,511 44,745 2,233 5 2,599,288 2,611,934 12,646 0
Claims provable in bankruptcy or rehabilitation 4,305 3,985 (319) (7) Common stock 34,231 34,231 - -
Deferred tax assets 3,895 4,168 273 7 Capital surplus 5,537 5,537 - 0
Other investments 23,040 24,077 1,037 5 Retained earnings 204,606 219,472 14,866 7
Allowance for doubtful accounts (2,929) (2,750) 178 - Treasury stock (1,999) (1,967) 31 -
242,376 257,274 14,898 6
Net unrealized holding gains on securities 10,338 13,355 3,016 29
Net unrealized gains on derivative instruments (761) 47 809 -
Translation adjustments 1,057 (191) (1,248) -
Remeasurements of defined benefit plans (562) (446) 116 -
10,071 12,765 2,694 27
Share subscription rights 312 491 179 57
Total investments and other assets 70,824 74,227 3,403 5 Minority interests 32,724 35,869 3,145 10
Total non-current assets 419,357 445,405 26,047 6 285,484 306,401 20,917 7
Total assets 2,884,773 2,918,336 33,563 1 2,884,773 2,918,336 33,563 1
Total accumulates other comprehensive income
Total net assets
Total liabilities and net assets
Total current assets Total current liabilities
Total long-term liabilities
Total liabilities
Total shareholders' equity
Millions of Yen
Accounts 2014/3 2014/9Change
2014/3 2014/9Change
Accounts
35
Create New Business with Leasing
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