Overview ofFinancial Results

Overview Results for FY2018
May 14, 2019

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.

Summary of FY2018
 Achieved all target figures for the final fiscal year presented in the Fifth Mid-term Management Plan one
year ahead of schedule.
ー Net income attributable to owners of the parent: ¥16.6 billion [target: ¥15.0 billion]
ー ROE: 10.3% [target: 10%]
ー Plan to pay year-end dividend of ¥40*, translating into annual dividend of ¥78 (year-on-year increase of ¥8)⇒ Slated to achieve Mid-term Management Plan target of [Dividend payout ratio: Maintain 20% or more]* Subject to resolution of General Meeting of Shareholders scheduled to be held in June 2019Net income (¥bn)

Operating assets (¥bn)

Annual dividend (¥)

2,021.4 billion yen
1,263.1

8.9

1,343.0

10.5

5054

FY12

FY13

1,432.3

11.1
56

1,581.0

1,608.7

11.6

12.4

60

64

1,683.0

13.6
70

Reached a record
high for the sixth
straight year

16.6
78yen

billion yen

15.0 billion yen
Target figure
for thefinal fiscal
year of theMid-termManagement
Plan

Achieved one year
ahead of schedule

FY14

FY15

FY16

FY17

FY18

FY191

Performance Trends (consolidated basis)
(¥bn)

FY16

FY17

FY18(¥bn)

Change%ChangeFY18
full-year
forecast *1

Forecast
announced
beforerevision *2

429.4

399.7

384.9

-14.8

-4％

390.0

420.0

Gross profit before writeoffs and funding costs

44.9

45.2

52.6

+7.4+16%――

Operating income

18.0

19.2

22.9

+3.7

+20％

23.0

20.0

Ordinary income

18.8

20.0

24.2

+4.2

+21％

24.7

21.4

Net income attributable toowners of the parent

12.4

13.6

16.6

+3.0

+22％

16.5

14.5

ROE

9.4%

9.6%

10.3%+0.7pt―

Revenues

FY16

FY17

FY18

Change¥64¥70(Plan) ¥78+¥8Interim dividend

¥30

¥32

¥38

+¥6Year-end dividend¥34¥38(Plan) ¥40+¥222.0%

21.9%

20.1％

Annual dividend

Dividend payout ratio*1 Announced on Feb. 7, 2019
*2 Announced on May 9, 20182

Overview of Financial Results(¥bn)

FY16

FY17

FY18

Change%ChangeRevenues

429.4

399.7

384.9

-14.8

-4％

Gross profit before writeoffs and funding costs

44.9

45.2

52.6

+7.4

+16％

(Funding costs)

(5.7)

(7.0)

(8.5)

+1.5

+22％

Gross profit

39.2

38.2

44.1

+5.9

+16％

(Credit costs)(1.5)(-0.8)(-0.2)+0.6―Operating income

18.0

19.2

22.9+3.7+20％

Ordinary income

18.8

20.0

24.2+4.2+21％

Net income attributable toowners of the parent

12.4

13.6

16.6+3.0+22％

End ofMar 2017

End ofMar 2018

End ofMar 2019

Change%Change1,608.7

1,683.0

2,021.4+338.4+20％

Net assets

141.8

154.6

182.2

+27.6

+18％

Equity ratio

7.8%

8.2%

8.0%

-0.2pt―Operating assets

ＰＯＩＮＴS■ Increased significantly due to success ofbusiness strategy of Fifth Mid-termManagement Plan including globalbusinesses■ Due to higher foreign currency
borrowings■ Reversal of allowance for credit costs■ Reached a record high for the sixth
straight year

■ Increased due to capital increase throughthird-party allotment* in addition toaccumulation of earnings* Executed a capital increase through third-party allotment
to Mizuho Bank, Ltd. in March 20193

Business Performance Overview
ＰＯＩＮＴS(¥bn)

Contract
execution volume
Leasing andinstallment sales
Financing
Others

FY16

FY17

FY18

Change%Change1092.01,335.9

1,548.8+212.9

+16%

475.7

430.5

549.4

+118.9

+28%

616.4

901.5

996.7

+95.2

+11%

―3.92.7-1.2-32%■ Contract execution volume increased 16％ y-o-y・ For “Leasing and installment sales,” execution
volume increased mainly in areas such as industrial
and factory as well as transport
・ Real estate-related bridge scheme projects
increased for both “Leasing and installment sales”
and “Financing”(¥bn)

End of
End of
End of
Mar 2017 Mar 2018 Mar 2019

Change%ChangeOperating assets

1,608.7

1,683.0

2,021.4+338.4+20%

Leasing andinstallment sales

1,088.1

1,122.2

1,306.1+183.9

+16%

520.6

556.9

709.0

+152.1+27%―3.96.3+2.4+62%

Financing
Others

FY16
Gross profit margin
before write-offs andfunding costs

2.86%

FY17
2.74%

FY18
2.84%

Change+0.10pt■ Operating assets increased 20% from the end of
the previous fiscal year in line with an increasein contract execution volume■ Gross profit margin before write-offs andfunding costs increased y-o-yNote) Gross profit margin before write-offs and funding costs = Gross profit before write-offs and funding costs / Average balance of operating assets

4Contract Execution Volume / Leasing and Installment SalesContract execution volume by equipment type

ＰＯＩＮＴS(¥bn)

FY16

FY17FY18

Change%ChangeIndustrial and factory

98.8

61.5

114.1

+52.6

+85%

■ Captured capital investment needs

Information andcommunications

78.9

81.2

93.4

+12.2

+15%

Transport

61.6

54.1

71.3

+17.2

+32%

Construction

35.9

47.6

44.7

-2.9-6%■ Contract execution volume exceeded¥90.0 billion for the first time in threefiscal years as a result of a largescale system contract won by a Groupcompany

Medical

13.3

16.4

20.3

+3.9

+24%

Commerce and services

28.5

32.0

38.2+6.2+19%

Office equipment

11.2

9.8

8.5

-1.3-13%

147.5

127.8

158.9

+31.1

+24%

121.6

84.8

126.8

+42.0

+50%

475.7

430.5

549.4

+118.9+28%

Other
Real estate

Total■ Aircraft acquisitions increased fromaircraft operating leases■ Increased mainly for superior bridge
scheme projects

5

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

FY16

FY17

FY18

Change%ChangeＰＯＩＮＴS

Commercial
Distribution
Finance / Loan, etc.

516.1

822.8

856.3

＋33.5

＋4％

Aircraft

12.8

31.3

22.8

-8.5

-27％

Real Estate

77.2

39.497.0+57.6+146%■ Executed superior bridge scheme
projects

Vessel

10.2

8.0

20.6

+12.6

+159％

■ Mainly refinancing projects

Total

616.4

901.5

996.7

＋95.2

＋11％

6

Balance (Real Estate/Global)(¥bn)

ＰＯＩＮＴS

4,000
400

349.9

Real estate

3,000
300

101.5

245.7
219.3
200
2,000

25.0

248.4
24.7

98.9

79.9
1,000100■ Property ownership businesses (outlinedin red) increased

139.4

7.7
47.9

Financing, etc.

146.8

101.7

ー Balance substantially increased due togrowth of initiatives targeted at logistics
facilities and hotels capturing societal
needs

Bridge / Investment,etc.
Bridge / Leasing

62.7
51.8

91.2

122.0

Land Leasing /Building Leasing0
End of Mar 2017

End of Mar 2018251.8(¥bn)

203.1
200
2,000

178.3

Global

33.6

56.3

41.0
15.5 195.4

37.3
18.8 147.0

22.2 122.5
100
1,000

End of Mar 2019

93.9

Cross-border, etc.
Vessel

76.2

Global / Aircraft

66.2

70.9

End of Mar 2017

End of Mar 2018

101.5

Global / Overseas
subsidiaries■ Balance in the field of global operations(Aircraft/Oversea subsidiaries) increased
ー Aircraft operating leases increasedー Completed turning Indonesian auto
finance company into a consolidated
subsidiary0End of Mar 20197Funding Actively raised funds from markets amid increase in interest-bearing debt in line with the increase in operating
assets.
ー Raised ¥67.0 billion through 3- to 10-year bonds in FY2018, in addition to increased CP issuance.
 Funding costs ratio increased due to higher foreign currency borrowings as a result of the expansion of the global
business.

Interest-bearing debt(¥bn)

Borrowings

CPBonds/ securitization

FY16

1,834.8

18,0001,800

1,40014,000

Funding costs (ratio)

1,492.4

1,536.2

135.1

162.8

221.4(¥bn)

609.8
433.8

Funding costs

453.8

Funding costs
ratio

FY17FY18

5.7

7.0

8.5

0.36%

0.42%

0.46%

Note)
Funding costs ratio = Funding costs / Average balance of operating assets

1,000
10,000External ratings
600
6,000

923.5

919.6

1,003.6
Rating agency
R&I

02,000End of Mar 2017

End of Mar 2018

End of Mar 2019

JCRRatingLong-term
Short-termLong-term
Short-term

Ａａ-１Ａ－8

Earnings Forecasts and Dividends
 Aim to post net income attributable to owners of the parent in the amount of ¥17.0 billion for FY2019, to post
record-breaking profit for the seventh straight year.
ー Plan to announce the Sixth Mid-term Management Plan* to be launched this fiscal year.
* Scheduled to be announced at a later dateー Efforts will be focused on building a structure of collaboration with Mizuho Bank, Ltd. and Marubeni
Corporation in the first fiscal year of the Mid-term Management Plan.

[Dividends]
・ Plan to revise year-end dividend for FY2018; a ¥2 increase from initial forecast of ¥38/share to ¥40/share.
・ Plan to raise annual dividend for the 18th straight year in FY2019; a ¥2 increase y-o-y to ¥80/share.
(¥bn)

FY2017(Results)

FY2018(Results)

FY2019(Forecast)

Change%ChangeRevenues

399.7

384.9

450.0

+65.1+17％

Operating income

19.2

22.9

24.2+1.3+6％

Ordinary income

20.0

24.2

25.3

+1.1+4％

Net income attributableto owners of the parent

13.6

16.6

17.0+0.4+2％Annual dividend¥70(Plan) ¥78¥80+¥2Interim dividend

¥3238

¥38

±¥0Year-end dividend¥38(Plan) ¥40¥42+¥221.9%

20.1％

23.0％

Dividend payout ratio9Supplementary Materials toFinancial Results

10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

Focus areas

Reinforcement ofmanagement baseVigorously promote more profitable businesses leveraging expertiseand financial strengths gained
Existing client baseEnvironment and energy

Real estate

Global (Aircraft & overseas subsidiaries)

Medical and healthcare
Technology
Strengthening 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”
Achieved ahead of schedule ROE: “10%”Achieved ahead of schedule Dividend payout ratio:“Maintain 20% or more”
Target in sightPlan to announce new Sixth Mid-termManagement Plan* to be launched in
FY2019, having achieved the target figuresin the Fifth Mid-term Management Plan oneyear ahead of schedule.
* Scheduled to be announced at a later date11

Marketing Strategies and Results in Focus Areas (Summary)
Existing client base

Real estate

Medical and healthcare Achieved the target for the final fiscal year of Contract execution volume steadily increased

Large and mid-sized companies

New business strategies
Support clients’commercial
distribution

Expand opportunities to gain profit
by being involved in commercial
distribution from upstream todownstream

Met client needs by being involved incommercial distribution, both in procurement
and sales
Jointly promote
servicebusiness withclients

Trends in operating assets

Help clients change theirbusiness model,
and receive payment for services

Made achievements in rolling out a service
scheme with a medical equipment manufacturer
and a major system vendor

Started promoting joint ventures initially in thefield of real estate, aimed at making
enhancements going forward

Trends in contract execution volume

55.0
349.9350.0(¥bn)(¥bn)

3,000300

219.3
2,000200

Share risks with clients as a
Promote JVs withbusiness partner, and acquireclients
new ROIs

due to the increase in equipment leasing in
diagnosis/ treatment and convalescence/nursingcare, even though issues remain in initiatives
targeted at real estate such as nursing facilities.

the Mid-term Management Plan due to theincrease in bridge schemes for REIT in Japan,
expansion of real estate leasing in areas withhigh societal needs (for hotels, childcare andnursing care) and expansion of investments inoverseas real estate funds.

245.7

Targetforfinal
fiscal
year

400
40

34.9

38.3
Targetforfinal
fiscal
year

29.7
200
20

1,000
1000

End of
End ofEnd ofEnd of
Mar 2017 Mar 2018 Mar 2019 Mar 2020
Period of Fifth Mid-termManagement Plan0FY16

FY17

FY18

FY19

Period of Fifth Mid-termManagement Plan12Marketing Strategies and Results in Focus Areas (Summary)Environment and energy

Global (Aircraft)

Global (Overseas subsidiaries)

Achieved in FY2017 the initial target for thefinal fiscal year by such means as providing
solutions through involvement in commercial
distribution of energy providers, in addition toproposing subsidies and introduction ofenergy-saving equipment.
 Smooth progress was made also on the basisof excluding large-scale spot projects.

 Started in-house management of aircraft for Balance of operating assets steadily increased asaircraft operating leases, in addition to joint
venture initiatives.
 Aircraft-backed collateralized loans increased
due to enhanced sales activities targeted atarrangers, etc.
 Balance of operating assets steadily increased
due to promotion of both operating leases andloans.

Trends in operating assets

Trends in contract execution volume(¥bn)* Large-scale
spot projects¥44.9 bn

80
800
80

76.2

50.0
43.9

400
40400
40

FY17FY18FY19

Period of Fifth Mid-termManagement Plan

59.5(¥bn)

Non-JapaneseJapanese

120.0

1,200
120

101.5
Targetforfinal
fiscal
year

37.1

19.2
00
FY16

61.7

56.3
Targetforfinal
fiscal
year

17.9

110.0

93.9
800
80

60
600

200
20

Trends in operating assets

Aircraft-backed collateralized loans
Aircraft operating leases

83.3*

(¥bn)

a result of the increase in transactions withleading local companies and non-Japanesecompanies that are beyond Japanese companies’
commercial distribution, as well as the conversionof an Indonesian auto financing company (listedon local stock exchange) into a consolidated
subsidiary.

800
80

66.2

70.9
65.0

33.337.8

32.8

33.1

Targetfor
final
fiscalyear

400
40

32.2
16.7

End of
End of
End of
End of
Mar 2017 Mar 2018 Mar 2019 Mar 2020
Period of Fifth Mid-termManagement Plan

036.5

End of
End of
End of
End of
Mar 2017 Mar 2018 Mar 2019 Mar 2020
Period of Fifth Mid-term
13Management Plan

Topics in Focus Areas (1)Existing client base

Real estate

Medical and healthcare

GlobalFulfilled clients’ needs for procurement adjustment and cashflow improvement by holding their partly-finished goodson their behalf
Developed a service scheme for retail shop facilities jointly with clients and started providing the service
Executed real estate investment jointly with a major developer (See (1) below)

Made first real estate investment in Asia (Singapore) through a prominent partner
Made equity investment targeted at serviced housing for the elderly (See (2) below)
Made achievements in rolling out a service scheme with a medical equipment manufacturer(1) Joint investment with a major developer
Executed joint investment in areal estate complex(commercial facilities + offices)that has the potential to rise invalue in the city center(2) Equity investment targeted at serviced housing for the elderly
IBJL’s first equity investment
targeted at nursing facilities forwhich societal needs aregrowing

14

Topics in Focus Areas (2)Environment and energy

GlobalSubsidy adopted in a project for introducing a large-scale power-generating facility into a factory (See (3) below)
Leased air conditioning facilities to educational institutions operated by a local government
Participated in an offshore wind power generation projectIn the aircraft operating leasing business, the number of aircraft increased following the commencement of in-housemanagement of aircraft, in addition to joint ventures
Launched truck maintenance lease in Thailand (See (4) below)
Turned an Indonesian auto financing company (listed on local stock exchange) into a consolidated subsidiary(3) Project for introducing a large-scale power-generating facility(4) Launched truck maintenance lease

Pushed ahead with a project for
introducing a large-scale, highefficiency cogeneration systemover multiple years jointly with aclient by utilizing subsidy

Set up truck maintenance leaseas a service exclusive to IBJL’s
Thai local subsidiary jointly witha Japanese dealer

15Company Profile

16

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

26,088 million yen (Outstanding shares: 49,004,000)

Employees

1,627 (consolidated, as of March 31, 2019)

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.,MG Leasing Corporation (joint venture with Marubeni Corporation),
IBJ Auto Lease Company Limited,
KL Lease & Estate Co., Ltd. (real estate leases),
KL & Co., Ltd. (used property purchase / sales),IBJ Air Leasing Limited (aircraft operating leases)
17