Overview
Results for FY2020
May 12, 2021

Mizuho Leasing Co., Ltd.

Summary of Results for FY2020
Net income attributable toowners of the parent (¥bn)

Net income attributable to owners of
the parent amounted to ¥21.8bn,

hitting a record high for the8th straight year.

21.8
17.5

16.6
12.4

FY1613.6

FY17+24%

FY18

FY19

FY20

FY2020 forecast and results (¥bn)

FY20
Results (A)Upwardly-revised forecasts
were exceeded for each
income indicator.

Full-year
forecast(B)(C)

Revenues

497.9

500.0(500.0)

100%

Operating income

26.0

23.5(20.8)

110%

Ordinary income

27.5

25.5(23.6)

108%

Net income
attributable to ownersof the parent

21.8

20.0(18.0)

109%*(B) Upwardly-revised on February 9, 2021

1%
achievement(A)/(B)*(C) Announced on May 14, 2020

Summary of Results for FY2020
Long-term dividend trend (¥)

Annual dividend will be ¥92(¥10 increase y-o-y)Plan to raise annual dividend
for the 19th straight year

Year-end dividendInterim dividend

7880

48
40

50

5456

60

64

2830

3482

92 (planned)

70

38

40

4252 (planned)

24262824262830303238402440

FY11FY12FY13FY14FY15FY16FY17FY18FY19FY200

Operating assets (¥bn)

2,021.4

Operating assets

increased ¥232.1bn from the2,322.4

1,608.7

2,090.3

1,683.0+11%

end of the previous fiscal yearto ¥2,322.4bn
End of Mar
2017
2End of Mar
2018

End of Mar
2019

End of Mar
2020

End of Mar2021

Factors behind change in net income attributable to owners of the parent
4.2

21.8 ¥bn
-0.6

(8)

4.6

17.5

(4)
(1)

(3)

3(6)

-0.7

-1.7(7)-0.5

Mainly due toforeign-currency
factors-1.3

FY19(5)(2)-2.6

Factors specific tothe previous term

1.2

1.7

Fee income

Leaserevenue

Funding costs
Total otherrevenue

Credit costs

Selling,
general andadministrative
expenses

Other income
and loss

Extraordinary
income andloss

FY20
Tax expense(A) Factors specific to the previousterm

Revenue decreased in connection with sale of operational investment securities in FY19 (decreases in gain on
sales and dividend income)(B) Fee income

Fee income from sales of JOLCO decreased due to the impact of COVID-19(C) Lease revenue

Lease revenue was driven by an increase in lease revenue due to accumulation of operating assets(D) Total other revenue

Total other revenue decreased due to a drop in foreign-currency interest rates(E) Funding costs

Funding costs decreased mainly due to lower funding cost on foreign currency(F) Credit costs

A small amount of provision for allowance for credit costs was recorded following a reversal in the previous
fiscal year(G) Other income and loss

Equity in earnings of RICOH LEASING COMPANY, LTD. and other associated companies increased(H) Extraordinary income and loss

A main factor was gain on sales of investment securities posted as extraordinary income.

Overview of Financial Results(¥bn)

FY18

FY19

FY20

Change%ChangeRevenues

384.9

539.2

497.9

-41.3

-8%

Gross profit before write-offs
and funding costs

52.6

60.3

59.3

-1.0

-2%

8.5

9.7

8.0

-1.7

-18%

Gross profit

44.1

50.5

51.3

+0.8

+2%

Credit costs

-0.2

-0.3

0.4

+0.7

-Operating income

22.9

26.3

26.0

-0.3

-1%

Other income

2.4

1.5

3.5+2.0+134%

Ordinary income

24.2

26.7

27.5

+0.8+3%

Net income attributable toowners of the parent

16.6

17.5

21.8

+4.3

+24%

Gross profit margin before
write-offs and funding costs

2.84%

Funding costs

2.93%

2.69%

-0.24pt-Note) Gross profit margin before write-offs and funding costs = Gross profit before write-offs and funding costs /Operating assets (average of the beginning and ending balances)4(¥bn)End ofMar 2019

End ofMar 2020

Operating assets

2,021.4 2,090.3

Change%Change2,322.4 +232.1+11%

End ofMar 2021

Net assets

182.2

195.8

210.9

+15.1

+8%

Equity ratio

8.0%

7.9%

7.7%

-0.2pt-Proceeds from sales of properties
upon completion of real estate-related
bridge scheme projects decreased

Gross profit steadily increased
y-o-y despite the harsh operating
environment

Gross profit margin before write-offs
and funding costs fell due mainly todecreases in fee income and gain on
sales of operational investment
securities.

Balances, especially of leaseassets, increased

Business Performance Overview
Contract execution volume

Operating assets

Contract execution volume increased 6% y-o-y.

Operating assets increased 11% from the end of theprevious fiscal year.

－ Leasing and installment sales generally decreased due tothe impact of COVID-19, but the sales of information andcommunications equipment increased by capturing large
projects.
－ Financing was driven by an increase in real-estate and－ Mizuho Group synergies led to steady expansion in ourbusiness base.
－ Increases in real-estate leases, finance, and informationand communications equipment contributed

short-term commercial distribution finance.

Leasing and installment sales

Leasing and installment sales

Financing and others

Financing and others

1,365.0(¥bn)+6%

1,282.4(¥bn)

2,322.4

+11%

721.6

+16%

1,467.4

1,600.8+9%End of Mar 2020

End of Mar 2021

2,090.3

2,000.0
1,200.0

622.9
590.1

752.3

+27%

1,000.0
600.0

692.4

5612.7-12%
0.00.0FY19

FY20

Contract Execution Volume / Leasing and Installment Sales
Contract execution volume by equipment type(¥bn)

6

FY18

FY19

FY20

Change%ChangeInformation andcommunications

93.4

152.9

176.1

+23.2

+15%

Real estate

126.8

180.6

154.3-26.3-15%

Industrial and factory

114.1

145.0

130.8

-14.2

-10%

Transport

71.3

76.2

37.2

-39.0

-51%

Construction

44.7

40.1

33.6

-6.5

-16%

Commerce and services

38.2

30.1

22.1

-8.0

-26%

Medical

20.3

15.6

11.2

-4.4

-28%

Other

40.6

51.8

47.4

-4.4

-9%

Total

549.4

692.4

612.7

-79.7

-12%

Captured capital investment needs
mainly of telecommunications
carriers
Bridge scheme projects for logistics
facilities accounted for a large portion

Mainly due to curbed efforts foraircraft operating leases and fewertransactions with bus/transportationcompanies

Curbed efforts in China

Contract Execution Volume / Financing
Contract execution volume7(¥bn)

FY18

FY19

FY20

Change%ChangeCommercial
distribution
finance / loan, etc.

856.3

492.3

627.0

+134.7+27%

Real estate

97.0

57.8

105.2

+47.4

+82%

Vessel

20.6

20.0

17.0

-3.0-15%

Aircraft

22.8

20.0

3.0

-17.0

-85%

Total

996.7

590.1

752.3

+162.2+27%

Mizuho Group synergies led toincrease in mezzanine loans andbridge schemes for logistics
facilities.

Funding Actively utilized direct funding such as issuance of bonds and CPs to ensure the stability of funding andcontrol costs.
 Funding costs and funding costs ratio both decreased mainly due to lower foreign currency funding interestrates.

Interest-bearing debt
Borrowings

CPFunding costs (ratio)

Bonds/securitization

FY18(¥bn)

FY19

FY20

2,255.4
Funding costs(¥bn)

2,000.0

2,000.6
1,834.8

Funding costs ratio

221.4

714.1
609.8

9.7

8.0

0.46%

0.47%

0.36%

345.1

266.6

1,500.0

8.5Note) Funding costs ratio = Funding costs / Operating assets (average of the
beginning and ending balances)

669.1

External ratings

1,000.0

Rating agency
500.0

1,003.6

1,065.0

1,196.1

JCR0.0End of Mar 2019

8R&I

End of Mar 2020

End of Mar 2021

RatingLong-termA

Short-terma-1

Long-termA+

Short-term-

Earnings Forecasts
and Dividends

Earnings Forecasts for FY2021
 Although the economic environment is expected to begin a gradual recovery, attention will still need to be

paid to the impact of COVID-19 during FY2021 as there remains a great deal of uncertainty caused, forexample, by the emergence of new variants and issues with vaccine rollouts.
We expect certain sectors to be affected by curtailment of capital expenditure and a rise in credit costs.
 Despite the unclear outlook, we will aim for ¥23.0 billion in net income attributable to owners of theparent by focusing to an even greater degree on successfully executing the Sixth Mid-term ManagementPlan.

(¥bn)

10

FY2019FY2020

FY2021

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

Revenues

539.2

497.9

550.0

+52.1+10%

Operating income

26.3

26.0

30.0

+4.0

+16%

Ordinary income

26.7

27.5

33.0

+5.5+20%

Net income attributable toowners of the parent

17.5

21.8

23.0

+1.2

+6%

Dividends
 Plan for a year-end dividend of ¥52/share for FY2020, which is ¥8 higher than the ¥44 initiallyforecast.
 Based on FY2021 earnings forecasts, plan to raise annual dividend for the 20th straight year to¥110/share in FY2021, in consideration of balance between shareholder returns such as dividend
payout ratio and accumulation of capital.

FY2019FY2020

FY2021

Change(Results)(Results) (A)(Forecast) (B)(B)-(A)* ¥82(planned) ¥92¥110+¥18Interim dividend

* ¥40

¥40

¥55

+¥15Year-end dividend¥42(planned) ¥52

¥55

+¥3

23.1%

+2.7ptAnnual dividend*Includes commemorative dividend of ¥2

Dividend payout ratio

1122.7%20.4%

Supplementary Materials
for Financial Results

Overview of Sixth Mid-term Management Plan (FY 2019-2023)
Providing solutions that contribute to financial andbusiness strategies for all our clients

Cooperation with strategic business partners

Enhancing lease financing business by expanding
client baseMizuho Financial Group

One of the largest client
bases in Japan andoverseasStrong ties between Group
Jointly implementing New
companies including
Business Strategies
banks, trust banks, andsecurities firms

Evolving new business strategies
Service business(*1)

Managing joint ventures with clients
Supporting clients’ commercial distribution

Strengthening andexpanding the leasefinancing business

Marubeni
Continuing initiatives in focus areas
Environment and energy

Medical and healthcare

GlobalAircraft

Real estateTechnologyOverseas networkWide range of leasefinancing products fromgeneral trading company

Strengthening overseas
lease financing
businesses
Investing in new
overseas businesses

Reinforcement
management basebase
Reinforcement ofof management
Strengthening group
governance13

Improving operational
productivity

HR strategy

Increasing
sophistication of riskreturn management

Consolidated Targets for the Final Fiscal Year of Sixth Mid-term Management
Plan (FY 2019-2023)
Net income attributableto owners of the parent(¥bn)¥30.0
billionTripleBalance inthe global area

compared with that at
the end of March 2019

Dividendpayoutratio

Aim for25%

or more30.0Triplecompared withthat at the endof March 2019

21.8
16.6

25.0%
25%

17.5

¥265.7

13.6

20.1%

billion20.4%(planned)

20%¥142.5billion
15%
FY17

FY18

FY19

FY20 ・ ・ ・ FY23

FY20 results ¥21.8 billion
14

End of Mar
2019

End of Mar
2021

・・・

End of Mar2024

Balance as of end of Mar 2021

¥265.7 billion

FY18 ・・・ FY20 ・・・ FY23

FY20
dividend payout ratio

20.4% (planned)

Connect needs to create the future

Inquiries
Mizuho Leasing Company, Limited
Corporate Planning Department
Corporate Communication Division
Tel: +81-3-5253-6540
Fax: +81-3-5253-6539
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 to guarantee that the company would achieve them.
Actual business results may differ materially from those expressed or implied by such forwardlooking statements due to various factors.