IBJ Leasing Group - mizuho-ls.co.jp · Further Expand Real Estate Business Continue focus on...
Transcript of IBJ Leasing Group - mizuho-ls.co.jp · Further Expand Real Estate Business Continue focus on...
IBJ Leasing Group Fifth Mid-term Management Plan
May 10, 2017
IBJ Leasing Co., Ltd.
867.4 894.2 942.8 1,032.6 1,105.8 1,088.1
343.9 368.9 400.3
399.7
475.2 520.6 1,211.3 1,263.1
1,343.0 1,432.3
1,581.0 1,608.7
400
800
1,200
1,600
End of Mar 2012 End of Mar 2013 End of Mar 2014 End of Mar 2015 End of Mar 2016 End of Mar 2017
Leasing and installment sales Financing
●Vision
A multimodal financial services group fully in tune
with needs and trends of the times and
uniquely positioned to grow with clients
-Exploit the characteristics of a highly flexible
leasing company and achieve growth
based on new profit drivers attuned to the needs
of the times
FY11 FY12 FY13 FY14 FY15 FY16
4.3 8.9 10.5 11.1 11.6 12.4
Net income
attributable to
owners of the
parent
Operating
assets
Achieved steady growth with new profit drivers by responding to changes in the
business environment
(¥bn) Period covered by Fourth Mid-term Management Plan
Real estate business
Aircraft leasing business
Specialized financing
Profit drivers Initiatives under
the Fourth Mid-
term Management
Plan
Net income
attributable to
owners of the
parent
¥12.0 billion
Operating assets
¥1,500 billion
Target figures
Review of the Fourth Mid-term Management Plan
1
Vigorously increased operating assets by
expanding “real estate leasing” and “bridge
schemes” while reducing “non-recourse
loans” from the viewpoint of risk-return
Entered the aircraft operating leasing
business by establishing a JV with Aircastle
Limited of US in February 2016, in addition
to the existing aircraft-backed collateral
loans
Real estate
Aircraft
Specialized
financing
(¥bn)
Track record greatly expanded by
addressing syndicated loans and hybrid
financing, etc. in Japan and overseas
43.7 33.0 22.0
15.1 19.6 20.5
12.8 31.3 62.4
63.2
112.7 114.5 134.9
196.6 219.3
0
50
100
150
200
250
End of Mar
2014
End of Mar
2015
End of Mar
2016
End of Mar
2017
Real estate leasing
REIT financing
Factoring
Asset finance
100.7 100.2
150.8
192.3
0
50
100
150
200
End of Mar
2014
End of Mar
2015
End of Mar
2016
End of Mar
2017
133.0
61.0
144.0
176.9
76.0
31.3 33.8 37.1
6.2 5.9
19.2
19.5
37.5 39.7
56.3
0
20
40
60
End of Mar
2014
End of Mar
2015
End of Mar
2016
End of Mar
2017
Leasing andinstallment sales
Financing
Profit drivers operating assets
2
Define new focus areas in response to “changes in social and industrial structures”
Changes in the social structure
• Respond to aging with a low birth rate
• Support companies’ overseas development and capture opportunities associated with overseas economic growth
• Respond to global issues, such as population increase and global warming
Changes in the industrial structure • Respond to businesses leading Industry 4.0
Fifth Mid-term Management Plan Positioning and Basic Policy
We achieved the targets of the Fourth Mid-term Management Plan and recorded the highest-ever
net income attributable to owners of the parent for 4 consecutive years
With the Fifth Mid-term Management Plan, we aim to take a big stride forward in the runup to our 50th anniversary(December,2019)
- Create new profit drivers and tackle creation of value for stakeholders
Positioning
3
New focus areas
So far, our business model has centered on leasing and installment sales for large and mid-sized
companies. Leveraging expertise and financial strengths gained through achieving the targets
of the Fourth Mid-term Management Plan, vigorously promote more profitable businesses
(1) Orientation toward marketing emphasizing high added value and differentiation by
thoroughly cultivating core businesses, leveraging expertise concerning physical items
(2) Commitment to new focus areas through more sophisticated portfolio management and
appropriate risk taking reflecting our financial strengths
Basic policy
• • • Medical and healthcare
• • • Global
• • • Environment and energy
• • • Technology
Value-creating company tackling challenges
together with clients
Value creation for stakeholders
Offer flexible and extensive capabilities to
resolve issues in response to changes in social
and industrial structures
Resolve social issues through promotion of business
Fulfill social responsibility including ESG
Develop human resources and cultivate
corporate culture conducive to tackling
transformation and realize working style reforms
Enhance corporate value and return profit to
shareholders by realizing sustainable growth Clients
Society Employees
Share-
holders
Flow for realization of the vision
Vision of the Fifth Mid-term Management Plan
Thorough client-
oriented approach
Fulfill
corporate
social
responsibility
Promote business
together with
clients as their
partner
Tackle new business
domains
transcending the
framework of
financing
4
Real estate
Existing client base Large and mid-sized companies
“Further expand real estate business” by leveraging expertise
[Continuing focus]
• Retail space leasing through collaboration with major store developers
• Bridge schemes for major REIT sponsors
[New focus]
• Tackle new domains such as healthcare, childcare facilities, hotels,
and overseas real estate
Co
ntin
uin
g fo
cu
s a
rea
s (c
ore
bu
sin
esses)
Business domain
“Cultivate core businesses” centering on large and mid-sized
companies
• Leverage strong relations with clients mainly in manufacturing and
domestic-demand-oriented industries
• In addition to financing solutions, in which we excel, promote a new
business strategy that contributes to clients’ business promotion
⇒More profitable business
(1) Support clients’ commercial distribution
(2) Jointly promote service business with clients
(3) Promote JVs with clients
Marketing Target / Strategy
Continuing Focus Areas (Core Businesses)
Focus area (2)
New business strategy
Focus area (1)
5
Cultivate Core Businesses
6
In addition to leasing and installment sales in response to clients’ capital investment, promote a new
business strategy that contributes to clients’ business promotion so as to further enhance earnings power
Tackle new business domains transcending the framework of financing by leveraging strong relations
with clients and promoting business as partners
In addition to conventional facility leasing and installment sales for clients, strive for further
improvement in earnings power by “fee income on trading etc.,” “obtaining gain on investment by
promoting JVs,” and “expanding the vendor financing domain”
Focus Area (1)
New business strategy
Vigorously involve in every phase of clients’ commercial distribution and expand income opportunities Acquire fee income by expanding “commercial distribution financing” and “leveraging trading company
functions”
Support the evolving of business models as client’s partner
Expand the vendor financing domain through alliances
Joint promotion of service businesses
As a business promotion partner, capture investment opportunities such as equity contribution
Select and implement projects from the viewpoint of risk-return based on portfolio management
Promote JVs with clients
Commercial distribution support
Further Expand Real Estate Business
Continue focus on “real estate leasing” and “bridge schemes”
Strengthen initiatives in fields where social needs are increasing, such as healthcare, childcare
facilities, and hotels by leveraging expertise accumulated during the Fourth Mid-term Management
Plan and collaboration with prominent partners for further expansion of business domains
Regarding investment in overseas real estate, development projects, etc., identify risk-return in
advance
7
Leasing
Bridge scheme
Investment
Balance at the end of FY16
¥220 billion
Building leasing in collaboration with major store developers
Continue emphasis on bridge schemes targeting REITs
by leveraging strong relations with prominent partners
Overseas real estate, development projects, etc.
Expand the scope of the business by addressing fields where social
needs are increasing, such as hotels, healthcare, and childcare
Continuing
focus
Balance at the end of the final year
¥350 billion
Focus Area (2)
New
focu
s a
rea
s
New Focus Areas
Aircraft
Overseas
subsidiaries
Medical and
healthcare
Environment and
energy
Technology
• Expand the scope from sales to hospitals
“Community-based integrated care system”
“Data health and preventive health
management”
• Develop service business
• Integrate with the real estate business
• Strengthening of collaboration with
various healthcare-related partners
• Collaboration with medical equipment
manufacturers and trading companies of
used medical equipment
• Collaboration with real estate
developers
Specific initiatives Marketing strategy Market trend Business domain
• Support overseas business
development of Japanese companies
• Cultivate business with non-
Japanese companies at full scale
• Collaboration with Japanese
companies in vendor financing
• M&A and asset purchases
Global
• Expand business in line with the
progress of IoT, AI, etc.
• Initiatives for establishing services
utilizing financing functions
• Collaboration with pioneers in each field
New
• Start full-scale operation of the
aircraft JV
• Expand the scope to cover engines
and parts
• Promotion of collaboration in the
aircraft JV
• Consider business development in
new domains by leveraging expertise
• Extensively capture demand associated
with companies’ investment in energy
saving
Strengthen consulting functions
• Expand coverage of the power-related
business and capture demand -Power generation, transmission and
distribution, energy supply
• Collaboration with engineering
companies
• Utilization of subsidies for energy-saving
initiatives
• Setting up new business models,
such as ESCO contracts
• Participation in project financing
Focus area (3)
New Focus area (4)
New Focus area (5)
New Focus area (6)
8
Medical and Healthcare
Expand the scope from conventional “hospital” sales centering on financing for medical
equipment to “community-based integrated care system” and “data health and health
management”
Develop service business in collaboration with healthcare-related partners and medical
equipment manufacturers
Cultivate real estate business in collaboration with real estate developers
Equipment finance Cultivate real estate business Service-based business
■Hospital field
■Public health insurance business
■Medical equipment, vehicles, etc.
■Community-based integrated care system field
(homes, healthcare, nursing care, preventive
care, livelihood support)
■Public health insurance + Public long-term care
insurance business
■Fee-based home for the elderly, housing for the
elderly with supportive services, rental assistive
devices, etc.
■Data health and health management
field (preventive health management
service)
■Business for services not covered by
public insurances
■Nursing robots, use of IoT etc., health
service, etc.
Contract execution volume
in FY16: ¥30 billion
Contract execution volume in the final year: ¥55 billion
Collaboration
with Siemens
Focus Area (3) New
9
Environment and Energy
*ESCO business: business in which the cost required for refurbishment for energy saving is covered by the reduction in utility cost
Extensively capture demand associated with companies’ investment in energy saving in collaboration with manufacturers and engineering companies
Use subsidies, offer sophisticated consulting for energy saving, promote new business models
such as ESCO
Expand the scope by launching the power-related business ••• Consider participation in project financing, etc.
Background: Japan has already adopted the Paris Agreement, an agreement under the international framework. Measures are being
implemented to achieve the target of 26% reduction in greenhouse gas emissions in 2030 compared with 2013.
Enhancement of
subsidies for
energy-saving initiatives
LED lighting Co-generation Photovoltaic power
generation
Small-scale hydroelectric / biomass power generation
Distribution of CO2 emission rights
Wind power generation
Natural refrigerant equipment
Air conditioners, boilers Batteries
Capturing demand in overseas markets
Use of project financing
Response to ESCO and energy service contracts
Approaches /
fields
Merchandise
Setting up of JVs as operating companies
Geothermal power generation
Capturing demand from municipalities
Investment in funds for renewables, bridge financing
Contract execution volume in FY16: ¥18 billion
Energy-saving machine tools
Contract execution volume in the final year: ¥50 billion
Focus Area (4) New
Power transmission and distribution
10
Capture business opportunities from an early stage in line with technological progress of IoT, AI, etc.
Respond agilely to change in the industrial structure, that is, the shift from “sales to services,” and
provide solutions
Accelerate business development through collaboration with pioneers in each field
Change in the
industrial structure Solutions
Business
opportunities
✔ Financing solutions
attuned to the business
model
✔ Sales financing for
devices and AI systems
✔ Services in collaboration
with IoT suppliers, etc.
✔ Discovery of potential
needs by business
matching
✔ Real estate leasing for
data centers, etc.
Sensing stage Increase in
investment in sensing
devices
IoT Investment in
communications
equipment/systems
Big Data
Investment in data centers in
line with the increasing needs
for data storage and
utilization
AI
Investment in data analytics
systems
Development of machine
learning functions
Stage for offering
services
Needs of service
providers for financial
solutions
注力分野⑤ Technology Focus Area (5) New
11
Global Business (Aircraft)
Promotion of JV business with Aircastle Limited is the core strategy, while utilizing the
accumulated expertise in subsequent business development
-Get the operating leasing business up and running
-Consider starting business related to engines, parts, and other aircraft peripherals
-Set up more Japanese Operating Lease (JOL) projects
*PDP (Pre-Delivery Payment) financing: financing meeting the needs for partial advance payment of aircraft manufacturing cost
Expand the “aircraft operating leasing business” launched in FY16
Expand diversified investment in airlines worldwide centering on
general-purpose narrow-body aircraft
Aircraft-backed collateralized loans Selective approach by identifying risk-return in view of competition with foreign banks
Japanese Operating Lease (JOL)
Amount in FY16
¥8.8 billion
Consider starting “new business” such as engine and parts leasing and
PDP financing
Leasing
Amount in the final year
¥12 billion
Financing
Fee
JV with Aircastle Limited
Balance at the end of FY16
¥56 billion Balance at the end of the final year
¥110 billion
12
Focus Area (6)-1 New
Strengthening of sales to
prominent local companies
Strengthen sales to prominent local
companies that are customers of our
JVs and of Japanese companies
Collaboration with Japanese
companies in vendor financing
Expand transactions with non-
Japanese companies through vendor
financing
Expand
transactions
with non-
Japanese
companies
Alliances / asset purchases
Use strengths of local players
centering on Asia
Global Business (Overseas Subsidiaries)
Strengthen collaboration with Japanese companies in sales financing; also consider M&A and
asset purchases
Focus on Asia and cultivate business with non-Japanese companies in full scale
Transactions with Japanese companies
Strengthen sales to prominent local
companies
Non-organic growth through
M&As
Collaboration with Japanese
companies in vendor financing
13
Sales target Business model Balance at the end
of FY16
¥66 billion
Balance at the end of
the final year
¥120 billion
Focus Area (6)-2 New
Realize a more flexible and robust organization capable of
tackling new challenges and transformation
Introduction of a flexible employment system
(employment type)
Resource Strategy
14
Strengthen the foundation for business growth
-Position promotion of diversity as a key management strategy and provide systematic support
for advancement of diverse human resources in workplaces
-Optimize administrative processes and IT systems throughout the Group to improve
operational productivity
Promotion of diversity Advancement of diverse human resources
in workplaces
Improvement of operational productivity
Double the performance
Expansion of systems to support a balance
between work and child-rearing/nursing care
Expansion of education and training systems
Strengthening of corporate system planning
function
Sophisticated management data analysis
environment
Unification of administrative processes and IT
systems throughout the Group
Strengthening of Risk-Return Management
Under the Fifth Mid-term Management Plan, promote initiatives to tackle new businesses while
working to expand core businesses
More sophisticated portfolio management is essential
Clarification of types and the total amount of risks to be
taken
Strengthen risk-return management of each portfolio.
Pursue the optimum allocation of businesses and assets
to enhance the quality of overall assets
Portfolio management
Risk-return analysis of individual businesses and assets
Verification of effective capital allocation
Verification of the financial position suitable for the risk
characteristics of each portfolio
Risk management
Optimum financing and ALM operation attuned to
portfolio structure
Financial ALM
Integrated operation of business portfolio and financial ALM for
appropriate risk-return management
15
Consolidated net income attributable to owners of the parent
ROE 9.4%
Consolidated dividend payout ratio 22.0%
16
Target Figures
Consolidated net income attributable to owners of the parent in FY19
ROE in FY19
Consolidated dividend payout ratio
FY16 results
¥15.0 billion
10%
Maintain 20%
or more
¥12.4 billion