Overview
First-Quarter Resultsfor FY2021
August 6, 2021

Mizuho Leasing Co., Ltd.

Summary of First-Quarter Results for FY2021
Ordinary income (¥bn)

Ordinary income has steadily
increased amid the harsh operating
environment under the COVID-19
pandemic

7.0
6.5

6.5
5.8

5.0

FY17 1Q

FY18 1Q

FY19 1Q

FY20 1Q

FY21 1Q

FY201Q Results

FY211Q Results

Change

115.4

118.3

+2.9

Operating income

5.9

6.4+0.5

Ordinary income

6.5

7.0+0.5(Extraordinaryincome)

(4.0)

(0.0)

-4.0

7.4

5.0-2.4

Income indicators (¥bn)

Revenues

Each income indicator remainedrobust

Net income
attributable to ownersof the parent
1Factors behind change in net income attributable to owners of the parent

(A)

7.4

¥bn

0.7

0.8
(B)

0.3
(C)

-0.6

0.0

(E)

-0.3

(D)

-0.3
(F)

1.0

5.0

Tax expense

FY21 1Q-4.0

FY20 1Q

2

Income from Gain on large Income from Funding costs
sale recordedlease,
foreignin thefinancing, etc.
currency
previousfactors (*)
periodCredit costs

Selling,
general andadministrative
expenses

Other incomeand lossExtraordinary
income andloss(A) Income from lease, financing, etc.

Driven by an increase in income from financing for real estate such as logistics facilities(B) Gain on large sale recorded in theprevious period

Distribution of income in connection with sale of operational investment securities and gain on sales ofreal-estate related bridge scheme projects in the same period of the previous fiscal year(C) Income from foreign-currency factors (*)

Due to lower foreign-currency interest rates, etc.

(D) Funding costs

Due to factors such as lower foreign currency funding interest rates(E) Credit costs

Credit costs contributed from a reversal of provisions for a vessel transaction(F) Extraordinary income and loss

Declined since extraordinary income (gain on sales of investment securities) was posted in the same
period of the previous fiscal year

* Estimate

Overview of Financial Results
(¥bn)

FY19
1Q

FY20
1Q

FY21
1Q

Change%ChangeRevenues

143.2

115.4

118.3

+2.9

+3%

14.5

14.6

14.5

-0.1

-1%

2.6

2.2

1.9

-0.3

-13%

11.9

12.4

12.6

+0.2

+2%

Credit costs

0.2

0.3-0.4-0.7-

Operating income

5.5

5.9

6.4+0.5+8%

Other income

0.5

0.9

0.9-0.0-4%

Ordinary income

5.8

6.5

7.0+0.5+8%

Net income attributable to ownersof the parent

4.1

7.4

5.0-2.4-33%

Gross profit before write-offs andfunding costs
Funding costs
Gross profit

Gross profit margin before writeoffs and funding costs

2.87%

2.75%

2.50%

-0.25pt-Note) Gross profit margin before write-offs and funding costs = Gross profit before write-offs and funding costs (annualizedbasis)/ Operating assets (average of the beginning and ending balances)3(¥bn)End ofMar 2020

End of Mar2021

End ofJun 2021

Operating assets

2,090.3

2,322.4

2,326.8+4.5+0%Net assets

195.8

210.9

218.7

+7.8+4%Equity ratio

7.9%

7.7%

8.0%

+0.3pt-Change% Change

The portion of gain on large sales
in the same period of the previous
fiscal year and the decline due toforeign-currency factors werealmost recovered by the increasein loan revenues
Funding costs declined due toforeign-currency factors

Steady increase in each incomeindicator

Gross profit margin before write-offs
and funding costs declined due tothe impact from the gain on large
sales and foreign-currency factors

Business Performance Overview
Contract execution volume

Operating assets

Contract execution volume declined 18% y-o-y－ The decline in leasing and installment sales is mainly due todelays in capital investment of customers and large projects
executed in the same period of the previous year

Operating assets remained flat compared to the endof the previous fiscal year
－ Financing increased with contribution fromcommercial distribution finance－ Financing grew with short-term commercial distribution finance
Leasing and installment sales

Leasing and installment sales

Financing and others

Financing and others

320.2
2,322.4

300.0

263.6

+0%

-18%
2,000.0

154.5

2,326.8

721.6

742.6

+3%

1,600.8

1,584.3-1%

End of Mar 2021

End of Jun 2021

200.0

171.6
1,000.0
100.0

165.7
92.0
0.0

0.04

FY20 1Q

FY21 1Q

Contract Execution Volume / Leasing and Installment Sales
Contract execution volume by equipment type
FY191QFY201QFY211Q

Change%ChangeReal estate44.133.2

23.3-9.9-30%

Mainly bridge scheme projects for commercial
facilities, offices, etc.

Information andcommunications

25.1

68.0

20.4

-47.6

-70%

Delays in capital investment oftelecommunications carriers and large projects
executed in the same period of the previous year

Industrial and factory

61.1

28.3

15.5

-12.8

-45%

Transport

23.4

10.4

9.5

-0.9

-9%

Construction

7.9

6.1

5.9

-0.2

-4%

Commerce and services

7.2

5.8

3.7

-2.1

-37%

Medical

5.4

2.7

2.8

+0.1

+2%

Other

8.1

11.2

10.9

-0.3

-3%

Total182.3

165.7

92.0-73.7-45%

(¥bn)

5

Mainly due to delays in capital investment ofmanufacturers

Contract Execution Volume / Financing
Contract execution volume
FY191QFY201QFY211Q

Change%Change

142.3

131.2

161.4

+30.2

+23%

Short-term commercial distribution
finance increased

Real estate

8.8

17.6

9.0-8.6-49%

Financing for logistics facilities
declined

Vessel

2.8

5.3

1.1

-4.2

-79%

Aircraft

1.1

0.3

0.0-0.3

-100%

Total

154.9

154.5

171.6

+17.1+11%(¥bn)

Commercial
distribution finance /loan, etc.

6Funding Funding costs and funding costs ratio both decreased due to factors such as lower foreign currency funding

interest rates

Interest-bearing debt(¥bn)

Borrowings

2,400.0
2,000.6
1,800.0

CP

Funding costs (ratio)

Bonds/securitization
2,267.4
2,255.4(¥bn)
Funding costs

345.1

338.5
Funding costs ratio

266.6

714.1

735.1

FY191QFY201QFY211Q

2.6

2.2

1.9

0.51%

0.41%

0.33%

Note) Funding costs ratio = Funding costs (annualized basis) / Operating assets(average of the beginning and ending balances)669.1
1,200.0

External ratings
Rating agency

600.0

1,065.0

1,196.1

1,193.8

0.0
End of Mar 2020 End of Mar 2021 End of Jun 2021

7R&I

JCR

RatingLong-termA

Short-terma-1

Long-termA+

Short-term-Earnings Forecasts and Dividends
 Each category of income for the first quarter remained strong against full-year forecasts‒Going forward, we will continue to closely watch the impact of the global spread of COVID-19

 The plan is to increase annual dividend by ¥18/share y-o-y to ¥110/share(¥bn)

8FY2020(Results)(A)

FY2021(Forecast)(B)

1Q
Results%
Progress

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

497.9

550.0

118.3

22%

+52.1

+10%

Operating income

26.0

30.0

6.4

21%

+4.0+16%

Ordinary income

27.5

33.0

7.0

21%

+5.5+20%

Net income attributableto owners of the parent

21.8

23.0

5.0

22%

+1.2+6%

Annual dividend

¥92

¥110

+¥18

Interim dividend

¥40

¥55

+¥15

Year-end dividend

¥52

¥55

+¥3Dividend payout ratio

20.4%

23.1%+2.7pt

Appendix

Main topics (Examples of initiatives by the Group)
Business alliance with Mizuho Capital Co., Ltd.
 Acquired 15.01% of the shares in the venture capital company Mizuho Capital and executed a business allianceagreement in May 2021.

April to June (1Q)

 Through this business alliance, we will provide risk capital to start-up companies engaged in innovation and cooperate
to support the cultivation of these investees, aiming to achieve business growth and improvement of corporate value ofboth Mizuho Capital and our company.

Commenced handling Mizuho SDGs leases
 In collaboration with Mizuho Research & Technologies, Ltd. we commenced handling “Mizuho SDGs Leases” that cancontribute to achieving SDGs.
 We provide customers engaged in leasing and installment sales with donation opportunities, SDGs-related internetseminars, and individual consulting related to SDGs.

Participation in hydroelectric power generation business For the hydroelectric power generation facilities operated by JNC CORPORATION Group, we utilized a pay-per-use typelease to execute a project investment type lease according to the revenue from electric power sales of the powergeneration business.
 Through our first participation in a domestic hydroelectric power generation business, we aim to achieve a sustainable
society by contributing to the realization of a decarbonized society.

Business alliance with NIPPON STEEL KOWA REAL ESTATE CO., LTD.

August10

 Our Group entered into a share transfer agreement to acquire 10.16% of the shares in the comprehensive real estatedeveloper NIPPON STEEL KOWA REAL ESTATE, and also executed a business alliance agreement in August 2021.
 Through this business alliance, we aim to expand the respective business areas by integrating the comprehensive realestate development business and the lease business.

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 anduncertainties, 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.