Consolidated Balance Sheet
IBJ Leasing Company, Limited and Consolidated Subsidiaries
As of September 30, 2017

September 30
2017

March 312017

Thousands of
U.S. dollars(Note 1)
September 30
2017

¥

¥

$

Millions of yen

ASSETS
Current Assets:
Cash and Cash Equivalents
Marketable Securities
Lease Receivables and Investments in Lease (Note 4)
Receivables (Note 4):
Notes and Accounts
Lease
Installment Sales
Loans
Factoring
Other
Total Receivables
Operational Investment Securities
Deferred Tax Assets
Prepaid Expenses and Other
Allowance for Doubtful Receivables
Total Current Assets
Property and Equipment:
Leased Assets (Note 4)
Accumulated Depreciation
Net Leased Assets
Advances for Purchases of Leased Assets
Own-used Assets
Accumulated Depreciation
Net Own-used Assets
Total Property and Equipment
Investments and Other Assets:
Investment Securities
Investments in Unconsolidated Subsidiaries
and Associated Companies
Long-term Receivables
Goodwill
Intangible Leased Assets (Note 4)
Deferred Tax Assets
Other
Allowance for Doubtful Receivables
Total Investments and Other Assets
Total Assets

See accompanying Notes to Consolidated Financial Statements.

¥

1

43,752520
830,716

41,563
44
809,304

388,081
4,612
7,368,425

538
3,043
138,586
200,248
104,5503,130
450,096
181,756
1,646
42,478(2,613)
1,548,352

486
4,028
138,089
205,206
139,7493,130
490,690
172,493
1,874
53,763(3,130)1,566,603

4,781
26,993
1,229,253
1,776,198
927,355
27,763
3,992,343
1,612,170
14,606
376,785(23,184)
13,733,838

188,606(41,124)
147,481631
6,187(3,272)
2,914
151,027

236,482(95,568)
140,913311
6,187(3,200)2,986
144,211

1,672,929(364,776)
1,308,153
5,603
54,881(29,026)
25,855
1,339,611

22,252
8,091

20,340
7,907

197,381
71,768

1,884
151
100
670
9,296
(54)
42,391
1,741,772

3,331
168
101
975
8,987
(343)
41,4691,752,284

16,714
1,342
888
5,944
82,461(485)
376,013
15,449,462¥$

Consolidated Balance Sheet
IBJ Leasing Company, Limited and Consolidated Subsidiaries
As of September 30, 2017

March 312017

Thousands of
U.S. dollars(Note 1)
September 30
2017

¥

$

Millions of yen
September 30
2017
LIABILITIES and EQUITYCurrent Liabilities:
Short-term Borrowings (Note 5)
Current Portion of Long-term Debt (Note 5)
Lease Payable
Accounts Payable - trade
Accrued Expenses
Income Taxes Payable
Deferred Profit on Installment Sales (Note 4)
Accruals for Debt Guarantees
Other
Total Current Liabilities¥

Long-term Liabilities:
Long-term Debt (Note 5)
Deposits Received
Liability for Employees' Retirement Benefits
Other
Total Long-term Liabilities

761,633
170,995
6,791
45,188
2,301
1,555
251
31
21,812
1,010,562

805,696
155,509
7,329
53,400
2,619
1,200
268
68
19,671
1,045,764

6,755,667
1,516,721
60,245400,818
20,418
13,793
2,235
282
193,474
8,963,653

544,225
29,2782,516
6,774
582,794531,232
25,623
2,533
5,375
564,764

4,827,258
259,701
22,32060,086
5,169,365

17,874

17,874

158,544

16,07099,572(1)

16,086
94,319(1)

142,543
883,201
(9)

9,632
(80)
81
(112)
143,036
5,379
148,415
1,741,772

8,036
24
348
(116)
136,571
5,183
141,755
1,752,284

85,440
(713)
722
(998)
1,268,730
47,714
1,316,444
15,449,462

Contingent Liabilities (Note 6)
Equity: (Note 9)
Common Stock
Authorized, 140,000,000 Shares;
Issued, 42,649,000 Shares as of September 30 and March 31, 2017
Capital Surplus
Retained Earnings
Treasury Stock - at cost
583 shares as of September 30 and March 31, 2017
Accumulated Other Comprehensive Income:Unrealized Gain on Available-for-sale Securities
Deferred (Loss) Gain on Derivatives under Hedge Accounting
Foreign Currency Translation Adjustments
Defined Retirement Benefit Plans
Total
Non-controlling Interests
Total Equity
Total Liabilities and Equity

See accompanying Notes to Consolidated Financial Statements.

2

¥

¥

$

Consolidated Statement of Income
IBJ Leasing Company, Limited and Consolidated Subsidiaries
For the six-month period ended September 30, 2017

September 30
2017¥ 178,408

September 30
2016¥ 181,364

Thousands of
U.S. dollars(Note 1)
September 30
2017$ 1,582,477

159,62118,787

162,203
19,161

1,415,833
166,644

Selling, General and Administrative Expenses
Operating Income

9,306
9,480

8,562
10,59982,552
84,092Other Income (Expenses):
Interest Income
Dividend Income
Equity in Earnings of Associated Companies
Profit from Investments
Interest Expenses
Bond Issuance Costs
Gain on Sales of Fixed Assets
Gain on Sales of Investment Securities
Loss on Devaluation of Investment Securities
Loss on Impairment of Long-lived Assets
Other ─ net
Income before Income Taxes

1
336
153
120
(142)
(1)
(9)
54
9,993

2
340
158
86
(138)
(104)
0
244
(151)
(39)
166
11,165

12
2,989
1,361
1,069
(1,267)
(9)
(84)
483
88,646

Income Taxes:
Current
Deferred
Total

2,123
929
3,052

3,354
126
3,480

18,8398,241
27,080Net Income
Net Income attributable to Non-controlling Interests
Net Income attributable to Owners of the Parent

6,940
238
6,702

7,684
183
7,501

61,5662,116
59,450Millions of yen

Revenues
Cost and Expenses
Gross Profit

¥

¥

Yen

Amounts per Share of Common Stock (Note 8)
Net Income attributable to Owners of the Parent per Share

See accompanying Notes to Consolidated Financial Statements.

3

September 30
2017

September 30
2016¥ 157.15¥ 175.88$

U.S. dollars(Note 1)
September 30
2017
$

1.39

Consolidated Statement of Comprehensive Income
IBJ Leasing Company, Limited and Consolidated Subsidiaries
For the six-month period ended September 30, 2017
Thousands of
U.S. dollars(Note 1)Millions of yen

Net Income

September 30
2017

September 30
2016

¥

¥

Other Comprehensive Income (Loss):
Unrealized Gain (Loss) on Available-for-sale Securities
Deferred (Loss) Gain on Derivatives under Hedge Accounting
Foreign Currency Translation Adjustments
Defined Retirement Benefit Plans
Share of Other Comprehensive Income (Loss) in Associated Companies
Total Other Comprehensive Income (Loss)

6,940

7,684

September 30
2017$(1,408)0(1,359)6(289)(3,049)

1,599
(108)
(325)
5
3
1,173

61,56614,187(962)(2,890)47
26
10,408Comprehensive Income

¥

8,114

¥

4,634

$

71,974

Total Comprehensive Income attributable to:
Owners of the Parent
Non-controlling Interests

¥

7,930
183

¥

4,533
100

$

70,345
1,629

See accompanying Notes to Consolidated Financial Statements.

4Consolidated Statement of Changes in Equity

IBJ Leasing Company, Limited and Consolidated Subsidiaries
For the six-month period ended September 30, 2017

Balance as of April 1, 2016
Net Income attributable to Ownersof the Parent
Cash Dividends Paid
Purchase of Treasury Stock
Changes in Scope of Consolidation
Changes in an Interest in Subsidiary
Net change during year
Balance as of March 31, 2017
Net Income attributable to Ownersof the Parent
Cash Dividends Paid
Purchase of Treasury Stock
Changes in Scope of Consolidation
Changes in an Interest in Subsidiary
Net change during the Period
Balance as of September 30, 2017

Thousands
Number ofshares ofCommon Stock
Outstanding
42,648Millions of yen
CommonStockCapitalSurplusRetained
Earnings

TreasuryStock¥ 17,874¥ 16,086¥ 84,514
12,414¥ (0)(2,558)
(0)

(0)
(50)

42,648¥ 17,874¥ 16,086¥ 94,319
6,702

¥ (1)

(1,450)(15)
42,648¥ 17,874¥ 16,070¥ 99,572¥ (1)Millions of yen

Balance as of April 1, 2016
Net Income attributable to Ownersof the Parent
Cash Dividends Paid
Purchase of Treasury Stock
Changes in Scope of Consolidation
Changes in an Interest in Subsidiary
Net change during year
Balance as of March 31, 2017
Net Income attributable to Ownersof the Parent
Cash Dividends Paid
Purchase of Treasury Stock
Changes in Scope of Consolidation
Changes in an Interest in Subsidiary
Net change during the Period
Balance as of September 30, 2017

Accumulated Other Comprehensive Income
Unrealized Deferred (Loss) Gain
ForeignDefinedGain onon Derivatives
Currency
Retirement
Available-for-sale under Hedge
Translation
Benefit Plans
Securities
Accounting Adjustments¥ 7,956¥ (174)¥ 1,026¥ (249)Total¥ 127,033
12,414

Noncontrolling
Interests¥ 5,753(2,558)(0)(50)
79¥ 8,036

198
¥ 24

(677)
¥ 348

132
¥ (116)(266)¥ 136,571
6,702

(104)
¥ (80)

(267)
¥ 81

3
¥ (112)(15)
1,228¥ 143,036¥ 132,786
12,414(2,558)
(0)
(50)

(570)
¥ 5,183(1,450)1,596¥ 9,632

Total Equity(836)¥ 141,755
6,702(1,450)196¥ 5,379(15)
1,424¥ 148,415

Thousands of U.S. dollars (Note 1)

Balance as of March 31, 2017
Net Income attributable to Ownersof the Parent
Cash Dividends Paid
Purchase of Treasury Stock
Changes in Scope of Consolidation
Changes in an Interest in Subsidiary
Net change during the Period
Balance as of September 30, 2017

CommonStockCapitalSurplusRetained
Earnings

TreasuryStock$ 158,544$ 142,685$ 836,613
59,450$ (9)(12,862)(142)$ 158,544$ 142,543$ 883,201$ (9)Thousands of U.S. dollars (Note 1)

Balance as of March 31, 2017
Net Income attributable to Ownersof the Parent
Cash Dividends Paid
Purchase of Treasury Stock
Changes in Scope of Consolidation
Changes in an Interest in Subsidiary
Net change during the Period
Balance as of September 30, 2017

Accumulated Other Comprehensive Income
Unrealized Deferred (Loss) Gain
ForeignDefinedGain onon Derivatives
Currency
Retirement
Available-for-sale under Hedge
Translation
Benefit Plans
Securities
Accounting Adjustments$ 71,280$ 215$ 3,093$ (1,033)

Total$ 1,211,388
59,450Noncontrolling
Interests$ 45,974(12,862)

14,160$ 85,440(928)$ (713)

See accompanying Notes to Consolidated Financial Statements.

(2,371)
$ 722

5

35
$ (998)(142)
10,896$ 1,268,730

Total Equity$ 1,257,362
59,450(12,862)

1,740$ 47,714(142)
12,636$ 1,316,444

Consolidated Statement of Cash Flows
IBJ Leasing Company, Limited and Consolidated Subsidiaries
For the six-month period ended September 30, 2017
Millions of yen
September 30
2017

September 30
2016

Thousands of
U.S. dollars(Note 1)
September 30
2017Cash Flows from Operating Activities:
Income before Income Taxes
Adjustments for:
Income Taxes Paid
Depreciation and Disposal of Fixed Assets
Equity in Earnings of Associated Companies
Profit from Investments
Loss on Impairment of Long-lived Assets(Decrease) Increase in Allowance for Doubtful Receivables(Decrease) Increase in Accruals for Debt Guarantees
Gain on Sales of Marketable and Investment Securities
Loss on Devaluation of Marketable and Investment Securities
Gain on Sales of Fixed Assets
Change in assets and liabilities:¥

Increase in Lease Receivables and Investments in Lease
Decrease in Receivables
Increase in Operational Investment Securities
Decrease in Accounts Payable ─ trade
Purchases of Leased Assets
Proceeds from Sales of Leased Assets
Decrease in Interest Payable
Other ─ net
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Investing Activities:
Purchases of Own-used Assets
Proceeds from Sales of Fixed Assets
Purchases of Marketable and Investment Securities
Proceeds from Sales and Redemption of Marketable
and Investment Securities
Proceeds from Sales of Subsidiaries causing Changes
in Scope of Consolidation
Other ─ net
Net Cash (Used in) Provided by Investing Activities
Cash Flows from Financing Activities:
Net Decrease in Short-term Borrowings
Proceeds from Long-term Debt
Repayments of Long-term Debt
Cash Dividends Paid
Other ─ net
Net Cash (Used in) Provided by Financing Activities
Foreign Currency Translation Adjustments on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of the Period
Cash and Cash Equivalents at End of the Period

See accompanying Notes to Consolidated Financial Statements.

6

¥

¥

9,993

11,165$88,646(1,768)
5,767
(153)
(120)
(805)
(36)
9
-

(4,865)
5,242
(158)
(86)
39
220
28
(244)
151
(0)

(15,689)
51,157(1,361)(1,069)(7,144)(322)-(22,550)
39,747(9,262)(8,198)(25,912)
13,690(20)
20,228
10,61420,608(10,337)
48,060(57,273)(10,142)(64,602)32,932(27)(5,160)(66,224)(55,059)(200,021)
352,563(82,158)(72,723)(229,841)
121,430(181)
179,428
94,153
182,799

(687)
(435)
60

(742)
15
(517)
11

(6,099)(3,866)
535

-

2,546

-

(230)
(1,293)235
1,548(2,046)(11,476)(28,607)
109,870(96,812)(1,450)(127)(17,127)
1
2,189
41,563(14,240)
140,476(83,731)(1,279)86
41,312(541)(12,739)
48,332(253,751)
974,549(858,720)(12,862)(1,135)(151,919)
13
19,417
368,664

43,752¥35,592

84-$

388,081NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of IBJ Leasing Company, Limited (“IBJL”) and its
consolidated subsidiaries (together with IBJL, “IBJL Group”) have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting
regulations and in accordance with accounting principles generally accepted in Japan, which are different incertain respects as to application and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements havebeen made to the company’s financial statements issued domestically in order to present them in a form which
is more familiar to readers outside Japan. The accompanying consolidated financial statements and notes
should be read in conjunction with the consolidated financial statements and related notes for the year ended
March 31, 2017.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which
IBJL is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar amounts areincluded solely for the convenience of readers outside Japan and have been made at the rate of ¥112.74 to
US$1.00, the approximate rate of exchange at September 30, 2017. The translations should not be construed as
representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
The amounts indicated in millions of yen are rounded down by truncating the figures below one million. As aresult, totals may not add up exactly.

2. Scope of Consolidation
The consolidated financial statements include the accounts of IBJL Group, which include IBJL-TOSHIBA
Leasing Company, Limited, Dai-ichi Leasing Co., Ltd., IBJ Auto Lease Company, Limited, IBJ Leasing(China) Ltd. and PT.IBJ Verena Finance. The number of the consolidated subsidiaries as of September 30,
2017 was 26.
The number of associated companies accounted for under the equity method as of September 30, 2017 was
3. Investments in associated companies consist of Krung Thai IBJ Leasing Co., Ltd., Juhachi Sogo Lease Co.,
Ltd. and PNB-IBJL Leasing and Finance Corporation.

3. Summary of Significant Accounting Policies
The accounting policies are the same as those applied in the Consolidated Financial Statements as of and forthe year ended March 31, 2017.

7

4. Operating Assets(1) Operating Assets as of September 30 and March 31, 2017 consisted of the following:(Thousands of(Millions of yen)

U.S. dollars)

September 30,

March 31,

September 30,

2017

2017

2017

Finance Lease¥830,716¥809,304$7,368,425

Operating Lease

147,581

141,014

1,309,041

Leasing total

978,297

950,318

8,677,466

Installment Sales (*2)

138,334

137,820

1,227,018

Loans and Factoring

307,928

348,085

2,731,316

Other

181,756

172,493

1,612,170¥1,606,316¥1,608,718$14,247,970

Leasing: (*1)

Total Operating Assets(*1) Leasing total consists of the aggregate of “Lease Receivables and Investments in Lease”, “Leased Assets” and“Intangible Leased Assets” on the Consolidated Balance Sheet at the period-end.
(*2) Installment Sales represent “Installment Sales Receivables” less “Deferred Profit on Installment Sales” on theConsolidated Balance Sheet at the period-end.

(2) The total amounts of new contracts entered into during the periods ended September 30, 2017 and 2016
were as follows:(Thousands of(Millions of yen)

U.S. dollars)
2016

2017

2017

Leasing:
Finance Lease¥150,449¥139,022$1,334,481

Operating Lease

25,49964,303

226,177

Leasing total

175,948

203,326

1,560,658

Installment Sales (*1)

29,56824,920262,273

Loans and Factoring

405,856

227,5823,599,934

Other

30,26879,822

268,480¥641,642¥535,651$5,691,345

Total(*1) The amount of Installment Sales is shown as “Installment Sales Receivables” less “Deferred Profit on Installment
Sales”.

8

5. Short-term Borrowings and Long-term Debt
(1) “Short-term Borrowings” as of September 30 and March 31, 2017 was as follows:(Thousands of(Millions of yen)

U.S. dollars)

September 30,

March 31,

September 30,

2017

2017

2017

¥308,954¥312,715$2,740,416

Commercial Paper

393,700

433,800

3,492,106

Payables under securitized lease

58,97959,180523,145¥761,633¥805,696$6,755,667

Bonds payable¥10,000¥-$88,700

Long-term Debt from banks and160,995

155,509

1,428,021¥170,995¥155,509$1,516,721

Short-term Borrowings
Short-term Borrowings from banks andother financial institutions

receivables
Total
Current Portion of Long-term Debt

other financial institutions
Total(2) “Long-term Debt” as of September 30 and March 31, 2017 was as follows:(Thousands of(Millions of yen)

U.S. dollars)

September 30,

March 31,

September 30,

2017

2017

2017

Long-term Debt
Bonds payable¥48,000¥58,000$425,758

Long-term Debt from banks and462,908455,312

4,105,985

33,316

17,919295,515¥544,225¥531,232$4,827,258

other financial institutions
Payables under securitized lease receivables
Total

9

6. Contingent Liabilities
Contingent Liabilities as of September 30, 2017 were as follows:(Thousands of(Millions of yen)

U.S. dollars)

2017

2017

Guarantee Obligations with respect to¥12,692$112,581

Other Guarantee Obligations

8,910

79,034

Accruals for Debt Guarantees

(31)

(282)

¥21,570$191,333

operating activities (*1)

Total(*1) The amount includes bank loans and trade receivables provided by Mizuho Bank, Ltd. and others, which are guaranteedby IBJL.

7. Segment Information(1) Information about sales and profit (loss)
For the six-month period ended September 30, 2017
(Millions of yen)
2017
Reportable segment

Installment
Leasing

Loans

Other

Total

sales

Reconciliations

Consolidated

(*1)

(*2)

Sales:
Sales to external¥165,163¥6,498¥3,304¥3,441¥178,408¥-¥178,408

115

99

149

55

419

(419)

-

Total

165,278

6,597

3,453

3,497

178,828(419)

178,408

Operating Expenses

157,733

6,714

1,600

1,024

167,073

1,854

168,927

Segment Profit (Loss)¥7,545¥(116)¥1,853¥2,472¥11,754¥(2,273)¥9,480

customers

Intersegment sales
and transfers

10For the six-month period ended September 30, 2016
(Millions of yen)
2016
Reportable segment

Installment
Leasing

Loans

Other

Total

sales

Reconciliations

Consolidated

(*1)

(*2)

Sales:
Sales to external¥170,699¥4,795¥3,500¥2,368¥181,364¥-¥181,364

101

116

134

44

396

(396)

-

Total

170,801

4,912

3,635

2,413

181,761(396)

181,364

Operating Expenses

162,242

4,756

1,047

874

168,921

1,844

170,765

Segment Profit (Loss)¥8,558¥155¥2,587¥1,538¥12,840¥(2,241)¥10,599

Reconciliations

Consolidated

(*1)

(*2)

customers
Intersegment sales
and transfers

For the six-month period ended September 30, 2017
(Thousands of U.S. dollars)
2017
Reportable segment

Installment
Leasing

Loans

Other

Total

sales

Sales:
Sales to external$1,464,996$57,644$29,310$30,527$1,582,477$-$1,582,477

1,021

879

1,327

495

3,722

(3,722)-

Total

1,466,017

58,52330,63731,022

1,586,199(3,722)

1,582,477

Operating Expenses

1,399,091

59,56014,2009,089

1,481,940

16,445

1,498,385

Segment Profit (Loss)$66,926$(1,037)$16,437$21,933$104,259$(20,167)$84,092

customers
Intersegment sales
and transfers11(*1) The details of Reconciliations to Segment Profit for the periods ended September 30, 2017 and 2016 were as follows:(Thousands of(Millions of yen)
2017

U.S. dollars)

2016

2017

Elimination of intersegment transactions¥(130)¥(142)$(1,159)

Administrative expenses not allocated to(2,142)(2,098)(19,008)¥(2,273)¥(2,241)$(20,167)

the reportable segments
Total(*2) Segment Profits are reconciled to Operating Income in the Consolidated Statement of Income.

(2) Impairment loss of long-lived assets or goodwill per reportable segment:
Not applicable

8. Per Share Information
Details of basic Net Income attributable to Owners of the Parent per share (“EPS”) for the periods ended
September 30, 2017 and 2016 were as follows:(Millions of(Thousands ofyen)shares)(Yen)(U.S. dollars)

Net Income
attributable

For the period ended September 30, 2017:

to Owners of

Weighted-average

the Parent

sharesEPS

Basic EPS
Net income available to common¥6,70242,648¥157.15$1.39¥7,50142,648¥175.88$1.56

shareholders
For the period ended September 30, 2016:

Basic EPS
Net income available to commonshareholders

129. Subsequent Events
Appropriation of Retained Earnings
On November 8, 2017, the Board of Directors of IBJL resolved to approve the payment of the interim cash
dividends to its shareholders registered as of September 30, 2017 as follows:

Interim cash dividends, ¥32.00 ($0.28) per share

13(Millions of(Thousands ofyen)

U.S. dollars)¥1,364$12,105