Overview ofFinancial Results

Overview Results for FY2017
May 9, 2018

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 FY2017
FinancialResults

 Net income attributable to owners of the parent was ¥13.6 billion,
producing record-high income for the 5th consecutive year.
 Plan to increase the year-end dividend by ¥4 for an annual payoutof ¥70 per share, in light of robust results in the initial fiscal year
the Fifth Mid-term Management Plan.

BusinessOperations

 Carry out business strategies under the Fifth Mid-termManagement Plan, and steadily strengthen the earnings base(¥bn)

FY15

FY16

FY17

Change%ChangeFY17
Forecast*%achieved

Revenues

364.2

429.4

399.7

-29.7

-7％

400.0

100％

Operating income

17.6

18.0

19.2

+1.2

+7％

18.3105％

Ordinary income

18.6

18.8

20.0

+1.2+6％

19.0

105％

Net income attributable toowners of the parent

11.6

12.4

13.6

+1.2

+10％

13.0

105％

*Announced on May 10, 20171Long-term performance trends (consolidated basis)
Net income (¥bn)

Operating assets (¥bn)

1,581.0

Annual dividend (¥)

1,608.7

1,432.3
1,263.1

1,683.0 billion yen
Posted new record
highs for 5 fiscal
years in a row

1,343.0

13.6 billion yen
12.4
10.5

11.1

11.6

15.0billion
yenTarget figure forthe final fiscal yearof the Mid-termManagement Plan

70yen648.960545650

FY1212年度

FY1313年度

FY1414年度

FY1515年度

FY1616年度

FY1717年度

FY192Overview of Financial Results(¥bn)
FY15

FY16

FY17

Change%ChangePOINTSRevenues

364.2

429.4

399.7

-29.7

-7％

Gross profit before writeoffs and funding costs

44.8

44.9

45.2

+0.3

+1％

(Funding costs)

(6.4)

(5.7)

(7.0)

+1.3

+22％

Gross profit

38.4

39.2

38.2

-1.0

-3％

mainly to higher foreign currency
borrowings due to growth in globaloperations(Credit costs)

(1.3)

(1.5)

(-0.8)-2.3―■ Increased ¥0.8 billion in reversal ofOperating income

17.6

18.0

19.2+1.2+7％

Ordinary income

18.6

18.8

20.0+1.2+6％

Net income attributableto owners of the parent

11.6

12.4

13.6

+1.2+10％

Change%ChangeEnd of
Mar 2016

End ofMar 2017

End ofMar 2018

1,581.0

1,608.7

1,683.0+74.3+5％

Net assets

132.8

141.8

154.6

+12.8

+9％

Equity ratio

7.4%

7.8%

8.2%+0.4pt

―ROE

9.5%

9.4%

9.6%+0.2pt―

Operating assets■ Gross profit before write-offs andfunding costs increased steadily■ Funding costs increased owing

allowance for credit costs■ Posted new record highs for 5 fiscal
years in a row■ Equity ratio increased on accumulatedearnings

3Business Performance Overview
POINTS(¥bn)

FY15

Contract
execution volume
Leasing andinstallment sales

FY16

FY17

Change%Change1,065.4

1,092.0

1,335.9＋243.9

+22%

465.5

475.7

430.5

-45.2

-10%

599.8

616.4

901.5

+285.1

+46%

―

―

3.9

+3.9―

FinancingOthers■ Contract execution volume increased 22%
from the previous fiscal year
Leasing and installment sales

・A main cause was a decline in short-term
projects in the selection and execution ofreal estate projects
Financing・Increased owing mainly to short-termcommercial distribution business andcontract conclusion in factoring(¥bn)

End ofMar 2016

End ofMar 2017

End ofMar 2018

Change%ChangeOperating assets

1,581.0

1,608.7

1,683.0

+74.3

+5%

Leasing andinstallment sales

1,105.8

1,088.1

1,122.2

+34.1

+3%

475.2

520.6

556.9

+36.3

+7%

―

―

3.9+3.9―

Financing
OthersFY15Gross profit margin before
write-offs and funding costs

2.97%

FY162.86%

FY172.74%■ Operating assets posted new record highFinancing

・The amount increased owing tomeasures in the Aircraft area

Change-0.12pt

Note) 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 Sales
Contract execution volume by equipment type

POINTS(¥bn)

FY15

FY16

FY17

Change%Change■ Decreased owing to the selection

Industrial and factory

110.3

98.8

61.5

-37.3

-38%

Information andcommunications

93.8

78.9

81.2

+2.3

+3%

Transport

47.1

61.6

54.1

-7.5

-12%

Construction

39.1

35.9

47.6

+11.7

+33%

construction machinery demand inJapanese and overseas markets

Medical

30.2

13.3

16.4

+3.1

+24%

■ In addition to steady growth in theCommerce and services

36.3

28.5

32.0

+3.5

+12%

Office equipment

10.2

11.2

9.8

-1.4

-12%

98.6

147.5

127.8

-19.7

-13%

selection and execution of projects
in real estate

Real estate

74.6

121.6

84.8

-36.8

-30%

■ Better performance by wind farms,

Other than real estate

24.0

25.9

43.0

+17.1

+66%

LEDs and other environment andenergy related equipment

Total465.5

475.7

430.5

-45.2-10%

Otherand execution of projects■ Growth based on tapping

Japanese market, new contributions
came from projects in China■ Decline in short-term projects in the5Contract Execution Volume / Financing
Contract execution volumePOINTS(¥bn)

FY15

FY16

FY17

Change% Change■ Increased owing mainly to short-Commercial
Distribution Finance/ Loan etc.

519.5

516.1

822.8

＋306.7＋59％

term commercial distribution
business and contract conclusion
in factoring

Aircraft

17.7

12.8

31.3

＋18.5

＋144％

■ Increased owing to measures onaircraft-backed collateral loans

Real Estate

47.4

15.2

Vessel

Total

599.8

77.2

10.2

616.4

39.4
8.0
901.5

-37.8

-2.2

＋285.1-49％■ Main reason was a decline inshort-term projects in line with theselection and execution of projects-22％*Operating assets of Commercial
Distribution Finance / Loan etc.

＋46％
(¥bn)

300

100

328.2

345.9

294.5

End ofMar 2016

End ofMar 2017

End ofMar 20186Balance (Real Estate/Global)
(¥bn)

245.7

250

Real estate

200

POINTS

219.3
196.6
98.9
79.9

150

■ Continuation of operations based on

70.8
13.2

125.8

139.4

25.0

7.7

property ownership businesses(outlined in red), mainly inmetropolitan areas

146.8

47.9

100

Financing, etc.

62.7

72.1

Bridge / Investment, etc.

5091.2ー Initiatives in alliances withmajor project partners

Bridge / Leasing
Land Leasing / Building
Leasing

40.5

51.8

End of
Mar 2016

End of
Mar 2017

0
End of
Mar 2018(¥bn)

203.1
200

178.3

172.1

Global

33.6

38.0

22.2
30.010039.7

37.3

104.2

18.8

147.0
■Balance increased amid growth in

122.5
76.2

56.3

Cross-border, etc.

Vesselglobal operations(Aircraft/Overseas subsidiaries)

Global / Aircraft

064.4

66.2

70.9

End ofMar 2016

End ofMar 2017

End of
Mar 2018

Global / Overseas
subsidiaries

7

Funding
 Interest-bearing debt increased from the end of the previous fiscal year in line with theincrease of operating assets.
 Expand the CP issuance limit* and procure funds flexibly at low rates*The non-consolidated CP issuance limit was increased from ¥400.0 billion to ¥550.0 billion in October 2017.

 Funding costs ratio increased owing mainly to higher foreign currency borrowings

Interest-bearing debt
1,800

Borrowings(¥bn)

1,465.6

1,492.4

1,476.9

1,400

114.9

135.1

150.3

456.3

CP

Funding costs (ratio)

Bonds / securitization

433.8

393.7(¥bn)

1,536.2

FY15

FY16

FY17 1H

FY17

162.8

453.8

1,000

Funding costs

6.4

5.7

3.4

7.0

Funding costs
ratio

0.42%

0.36%

0.42%

0.42%

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

6002000894.4

923.5

932.9

919.6

End ofMar 2016

End ofMar 2017

End ofSep 2017

End ofMar 20188Earnings Forecasts and Dividends
 Plan to achieve net income attributable to owners of the parent of ¥14.5 billion,
producing record-high income for the 6th consecutive year.
【Dividends】
・Plan to revise year-end dividend for FY2017; a ¥4 increase from ¥34/share to ¥38/share.
・Plan to raise annual dividend for the 17th straight year in FY2018; a ¥4 increase to¥74/share.
(¥bn)

FY2017(Results)(A)

FY2018(Forecast)(B)

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

399.7

420.0+20.3+5％

Operating income

19.2

20.0+0.8+4％

Ordinary income

20.0

21.4+1.4+7％*Target figure for the final
fiscal year of the Mid-termManagement Plan (FY19)

Net income attributable toowners of the parent *13.6

14.5+0.9+6％¥15.0 billion(Plan) ¥70¥74+¥4Interim dividend

¥32

¥36

+¥4Year-end dividend(Plan) ¥38

¥38

±¥0

21.9%

21.8%

Annual dividend

Dividend payout ratio

9Supplementary Materials to
Financial 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
Expanding 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

 ROE: 10%

 Dividend payout ratio: Maintain 20% or more

11Marketing Strategies and Results in Focus Areas
Existing client baseLarge and mid-sizedcompanies• In addition to the financial solutions,promote new business strategies tostrengthen profitability
New business strategies(1) Support clients’ commercial
distribution(2) Jointly promote service
business with clients(3) Promote JVs with clients

Environment andenergy• Extensively capture demandassociated with companies’
investment in energy saving－Strengthen consulting functions• Strengthen capturing demand of
the power-related business－Power generation, transmission
and distribution, energy supply
Execution volume in FY17:¥83.3 bn

Real estate• Continue focusing on store leasing incollaboration with major developers
and on bridge schemes

Medical andhealthcare• Expand the scope from sales tohospitals“Community-based integrated care system”“Data health and preventive healthmanagement”• Tackle new domains such as
healthcare, childcare, hotels andoverseas real estate• Develop service business• Integrate with the real estate business

Balance atthe end of March 2018:

Execution volumein FY17:¥245.7 bn¥34.9 bn

Global (Aircraft /Overseas subsidiaries)• Promote collaboration in the aircraft JV• Consider operations in the engines andparts sectors• Support overseas business development ofJapanese companies

Technology• Provide solutions reflecting change
in the industrial structure, that is, theshift from “sales to services”• Proactively collaborate withpioneering companies in each field• Expand business with non-Japanesecompanies at full scale
Balance at the end of March 2018:

Aircraft
Overseas subsidiaries¥76.2 bn
¥70.9 bn12Topics in Focus Areas (1)Existing client base

Real estate

Medical and healthcare

Successively concluded contracts for large projects through involvement in clients’ commercial
distribution of large size energy-related equipment sales
Joint initiative with major REIT in the Company’s firstoff-balance sheet development project of a manufacturing plant (see (1) below)
Achieved first results for real estate leasing of childcare facilities and hotels
Took measures in the U.S./Europe real estate markets through collaboration with a leading partner
Alliances with partners for execution of maintenance leases for advanced operating room facilities(see (2) below)

Concluded contract for a large automobile lease to support the business expansion of a major
nursing care company(1) The Company’s first off-balance sheet
development project of a manufacturing plant(2) Initiatives regarding maintenance lease of world’s first
four-way hybrid operating room

13

Topics in Focus Areas (2)GlobalEnvironment and energy

Technology

Medical and healthcare

Transactions targeted at local healthcare institutions are growing in China
Transactions with major financial conglomerates in Thailand and Indonesia are growing
Fully considering risk-return, the balance of the aircraft-related business has been growing
steadily
Commenced leasing of large-scale wind farm (see (3) below)
Launched measures in bridge businesses for solar power generation (see (4) below)
Started offering customized sales program for collaborative robots (see (5) below)(3) Project for Eco Power Co.,Ltd.
14 wind power generators for a total
generation capacity of 28MW

(4) Integration of expertise built up inenvironment- and energy-related equipment
and real estate segments(5) COBOTTA® made by DENSO WAVE
INCORPORATED

COBOTTA®is a registered trademark ofDENSO CORPORATION.

14Company Profile15Company Profile
Company Name

IBJ Leasing Company, LimitedAddress

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

1,081 (consolidated, as of March 31, 2018)

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)

16