Overview ofFinancial Results

Overview
First-Half Results for FY2017
Nov 8, 2017

IBJ Leasing Co., Ltd.
This document contains forecasts and other forward-looking statements that are based on information available
at the time of preparation of this document and subject to certain risks and uncertainties, and is not intended toguarantee that the company would achieve them. Actual business results may differ materially from thoseexpressed or implied by such forward-looking statements due to various factors.

Leasing and Installment Sales
 Information and Communications and Construction grew, but overall volume declined y-o-ypartly owing to the selection and execution of projects in Real Estate.

Contract execution volume by equipment type(¥bn)

FY151H

FY161HFY171H

Change(%)

Industrial and factory

51.5

53.1

37.9

-15.2(-29%)

Information and communications

35.8

35.9

42.3

+6.4(+18%)

Transport

22.4

25.4

26.7

+1.3(+5%)Construction

17.2

14.3

23.0

+8.7(+60%)

Medical

14.8

6.5

8.3

+1.8(+27%)

Commerce and services

18.4

15.0

14.4

-0.6(-4%)

Office equipment

5.4

5.1

4.8

-0.3(-7%)

46.7

72.9

48.3

-24.6(-34%)

Real estate

34.8

60.8

25.2

-35.6(-59%)

Total

212.2

228.2

205.5

-22.7(-10%)

Other1Financing
 Contract execution volume increased y-o-y.
ー In Commercial Distribution Finance / Loan, etc., volume increased due to contract conclusion
in short-term factoring and commercial distribution support.
ー In Aircraft Finance, volume increased due to measures on aircraft-backed collateral loans.
ー In Real Estate Finance, volume decreased as a result of refined selection of projects.

 Operating assets decreased from the end of the previous fiscal year due to considerable
redemptions during the period.

Operating assets

Contract execution volume(¥bn)
FY151H
Commercial
Distribution Finance /Loan etc.

FY161HFY171H(¥bn)

Change(%)

Real Estate FinanceAircraft Finance
Vessel FinanceCommercial Distribution Finance / Loan, etc.

600

520.6
246.8

243.9

410.7

+166.8475.2(+68％)

Vessel Finance

6.5

5.1

4.8

-0.3(-6％)

Aircraft Finance

12.1

4.8

7.8

+3.0(+63％)

104.9
400

84.0
33.8
63.0

37.1
50.3

489.7
90.0
41.6
47.7

200
Real EstateFinance

Total

14.0

53.6

12.7

-40.9

(-76％)

279.4307.4

436.1+128.7(+42％)

294.5

0End ofMar 2016

328.2

310.4

End ofMar 2017

End ofSep 20172Operating Assets and Yield
 Operating assets at the end of period and gross profit margin before write-offs and funding
costs remained steady y-o-y.

Operating assets

Yield

Leasing and installment sales(¥bn)

1,600

FY161HFinancing

1,581.0475.2

1,608.7

520.6

1,606.3

489.7

FY171H

ChangeGross profit margin
before write-offs andfunding costs

2.80％

2.76％

-0.04pt

Funding costs ratio

0.34％

0.42％

+0.08pt

Gross profit margin

2.47％

2.34％

-0.13pt

1,553.7

1,607.5

+53.8

1,200

Operating assets
800(average balance, ¥bn)

1,105.8

1,088.1

1,116.6400
End ofMar 2016

End ofMar 2017

End ofSep 2017

Notes) Each ratio is annualized.
Gross profit margin before write-offs and funding costs= Gross profit before write-offs and funding costs / Average balance of operating assets
Funding costs ratio = Funding costs / Average balance of operating assets
Gross profit margin = Gross profit / Average balance of operating assets

3Funding Long-term funding was increased to improve financial stability, and the long-term ratiorose. Funding costs increased mainly due to more foreign currency borrowings.
 The CP issuance limit of IBJ Leasing was increased from ¥400.0 billion to ¥550.0 billion inorder to enhance channels for flexible funding.

Interest-bearing debt
1,800(¥bn)

1,400Borrowings

CPFunding costs (%)

Bonds/securitization
Funding costs(¥bn)

1,465.6

1,492.4

114.9

135.1

456.3

Funding costs ratio

1,476.9
150.3

433.8

3.4

3.2
3

0.44%

2.60.42%

0.34%

393.7

1,00010
FY15 1H
600894.4

932.9

923.5

FY16 1H

FY17 1HNote)
Funding costs ratio= Funding costs (annualized basis) / Average balance of operating assets

Net assets/ equity ratio
200

End ofMar 2016

Long-term ratio

End ofMar 2017(¥bn)
End of Mar End of Mar End of Sep
2016
2017
2017

End ofSep 2017

End of Mar
2016

End of Mar2017

End of Sep
2017

Net assets

132.8

141.8

148.4

40％

46％

48％

Equity ratio

7.4％

7.8％

8.2％

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Consolidated P/L Gross profit before write-offs and funding costs increased y-o-y due to accumulation ofsuperior projects.
ーAssets such as real estate and aircraft operating leases denominated in foreign currenciescontributed.

 Due to an increase in funding costs and a decrease in gains on credit cost reversals,
net income attributable to owners of the parent declined y-o-y, but progressed favorably
against the full-year forecasts.
(¥bn)

Consolidated P/L

FY151H

FY161HFY171H

Change% Change

FY17 Forecast<% progress>＜45%＞

Revenues

166.2

181.4

178.4

-3.0-2%Gross profit before writeoffs and funding costs

21.4

21.8

22.2

+0.4+2%―(Funding costs)

(3.2)

(2.6)

(3.4)

(+0.8)(+30%)―

Gross profit

18.2

19.2

18.8

-0.4

-2%

―

(Credit costs)(0.1)(-1.2)(-0.4)(+0.8)(－)―

Operating income

8.3

10.6

9.5

-1.1

-11%

Ordinary income

8.8

11.1

10.0

-1.1

-10%

(8.9)

(10.0)(9.6)（-0.4)

(-3%)

5.9

7.5

6.7

-0.8

-11%

(Ordinary income
before write-offs)
Net income attributableto owners of the parent

＜52%＞
＜53%＞

400.0

18.319.0―＜52%＞

13.0

5

Earnings Forecast and Dividends
 Profit at each level is performing favorably against full-year forecasts.
 Plan to raise annual dividend for the 16th straight year in FY2017; a ¥2 increase to ¥66/share(¥bn)

FY2016(Results)(A)

FY2017(Forecast)(B)

1H results% progress

Change(B)-(A)% Change(B)/(A)

Revenues

429.4

400.0

178.4

45%

-29.4

-7%

Operating income

18.0

18.3

9.5

52%

+0.3

+2%

Ordinary income

18.8

19.0

10.0

53%

+0.2

+1%

Net income attributableto owners of the parent12.4

13.0

6.7

52%

+0.6

+5%

Annual dividend

¥64

¥66

+¥2Interim dividend

¥30

¥32

+¥2Year-end dividend¥34(Plan) ¥34±¥022.0％

21.7％

Dividend payout ratio6Supplemental Materialfor Financial Results

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Overview of Fifth Mid-term Management Plan (FY2017-2019)
Vision“Value-creating company tackling challenges together with clients”
Business Strategies and Reinforcement of Management Base
Basic policy

Vigorously promote more profitable businesses leveraging expertiseand financial strengths gainedFocus areas

Reinforcement ofmanagement base

Existing client baseEnvironment and energy

Real estate

Global (Aircraft / Overseas subsidiaries)

Medical and healthcare

TechnologyStrengthening of risk-return management: Integrated operation of business portfolio
and financial ALM
Resource strategy: Promotion of diversity / Improvement of operational productivity

Target figures for the final fiscal year Net income attributable to owners of the parent: ¥15.0 billion

 ROE: 10%

 Dividend payout ratio: Maintain 20% or more8

Focus area (1)Summary Steadily promote marketing strategies of each focus area in the Fifth Mid-termManagement Plan

Each focus areaBusiness domain

Marketing strategy
・In addition to the mainstay financing
solutions, promote new businessstrategies to strengthen profitability

Existing client baseLarge and mid-sizedcompanies

Real estate

New business strategies(1) Support clients’ commercial distribution(2) Jointly promote service business with clients(3) Promote JVs with clients

Topics• Concluded first contract for a large projectthrough involvement in client’s commercial
distribution of large size energy-related
equipment sales
ClientBuyer
Sales support

・Continue focusing on retail space leasing
through collaboration with major store
developers and on bridge schemes• Achieved first results for real estateleasing of childcare facilities andhotels

・Tackle new domains such as healthcare,childcare facilities, hotels, and overseas
real estate• Took measures in the U.S. realestate market through collaboration
with a leading partner

Balance atthe end of
Sep 2017¥219.4 bn9

Focus area (2)Business domain

Marketing strategy
・Expand the scope from sales tohospitals

Medical andhealthcare“Community-based integrated care system”“Data health and preventive health management”

・Develop service business・Integrate with the real estate business

Overseassubsidiaries

・Support overseas businessdevelopment of Japanese companies
・Cultivate business with non-Japanesecompanies at full scale

Global・Promote collaboration in the aircraft JV

Aircraft・Expand the scope to cover engines andparts― Consider business development in new
domains by leveraging expertise

Topics• Concluded contract for a large
automobile lease to support thebusiness expansion of a major
nursing care company

Execution
volumein FY17 1H¥15.8 bn• Transactions targeted at local
healthcare institutions are growingin China• Commenced transactions with alocal major distribution agent ofconstruction equipment in Thailand

Balance atthe end ofSep 2017

• Expanded transactions with major
financial conglomerates in Thailandand Indonesia¥66.2 bn*

• Fully considering risk-return, theaircraft-related business has been
growing steadily

Balance atthe end ofSep 2017¥60.0 bn*

*Valued using forex rates at the end of Sep 2017.

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Focus area (3)Business domain

Environment andenergy

TopicsMarketing strategy

・Extensively capture demand associated with • Commenced leasing of large-scalecompanies’ investment in energy saving
wind farm－Strengthen consulting functions(see (1) below)
・Expand coverage of the power-related• Launched advanced energy
business and capture demandbusiness in collaboration with－Power generation, transmission andmajor business operators
distribution, energy supply(see (2) below)(1) Project for Eco Power Co., Ltd.
14 wind power generators for a total generation
capacity of 28,000kW

Execution
volumein FY17 1H¥49.7 bn

(2) Launch of Japan’s first microgrid system with a total of 117 homes■Area where PanaHome’s Smart City Shioashiya “Solar-Shima” is being developed
This microgrid system will power a total of 117 homes in Zone D4■Responsibilities of each project participantParticipant
PanaHome
ENERES
IBJ Leasing
Public Enterprises Agency

Role
Design, development, housing construction,and overall planning of the smart city
Energy management services
Own and manage private power distribution
lines
Residential land development and regional
cooperation

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Company Profile

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Company Profile
Company Name

IBJ Leasing Company, Limited

Address

1-2-6 Toranomon, Minato-ku, Tokyo 105-0001

Representative

Hiroshi Motoyama, President and CEO

Establishment

December 1, 1969

Listing

Tokyo Stock Exchange, 1st Section (Code: 8425)

Capital Stock

17,874 million yen (Outstanding shares: 42,649,000)

Employees

1,070 (Consolidated, as of September 30, 2017)

Business Sites

14 in Japan (Tokyo, Osaka, Nagoya, others)
6 overseas (5 in Asia, 1 in Europe)

Key Group Companies:

IBJL-TOSHIBA Leasing Company, Limited, Dai-ichi Leasing Co., Ltd.,
Universal Leasing Co., Ltd., IBJ Auto Lease Company Limited,
KL Lease & Estate Co., Ltd. (building leases),
KL & Co., Ltd. (used property purchase/ sales),IBJ Air Leasing Limited (aircraft operating leases)
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