(Member of Financial Accounting

Standards Foundation)

Consolidated Financial Results

for the Three Months Ended June 30, 2022

(Under Japanese GAAP)

July

29, 2022

Company name: Fuyo General Lease Co., Ltd.

Listing: Tokyo Stock

Exchange

Securities code: 8424

URL: https://www.fgl.co.jp/

Representative: Hiroaki Oda, Representative Director, President & CEO

Inquiries

: Yusuke Kishida,

Senior Managing Director

Telephone: +81-3-5275-8800

Scheduled date

to

file quarterly

securities report

:

August 12, 2022

Scheduled date

to

commence dividend payments

:

－

Preparation of

supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results briefing

:

None

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Three

months ended

(¥ millions)

%

(¥ millions)

%

(¥ millions)

%

(¥ millions)

%

June

30,

2022

217,415

53.6

11,381

3.7

13,027

6.6

8,217

2.8

June

30,

2021

141,578

(20.9)

10,976

14.7

12,217

19.5

7,991

29.0

Note: Comprehensive income For the three months ended June 30, 2022:

¥ 11,222 million

(15.2)%

For the three months ended June 30, 2021:

¥ 13,239 million

40.6%

Basic earnings

Diluted earnings

per share

per share

Three months ended

(¥)

(¥)

June 30, 2022

274.30

272.79

June 30, 2021

266.37

264.67

  1. Consolidated financial position

Total assets

Net assets

Shareholders'

Net assets per share

equity ratio

As of

(¥ millions)

(¥ millions)

%

(¥)

June

30,

2022

2,941,024

374,064

11.3

11,134.06

March

31,

2022

2,949,704

374,239

11.3

11,121.96

Reference: Shareholders' equity

As of June 30, 2022

¥ 333,679 million

As of March 31,2022

¥ 332,834 million

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

(¥)

(¥)

(¥)

(¥)

(¥)

FY2021

－

130.00

－

155.00

285.00

FY2022

－

FY2022(Forecast)

158.00

－

158.00

316.00

Note: Revisions to the forecast of cash dividends most recently announced: None

- 1 -

3. Forecast for Fiscal 2022 (April 1, 2022 - March 31, 2023)

(Percentage figures represent comparisons with fiscal 2021 full-year results)

Net sales

Operating profit

Ordinary profit

Profit attributable

Basic earnings

to owners of parent

per share

(¥ millions)

%

(¥ millions)

%

(¥ millions)

%

(¥ millions)

%

(¥)

Full year

700,000

6.4

51,500

11.9

56,000

6.2

36,000

6.2

1,202.97

Note: No changes were made to the most recently announced earnings forecasts.

*Notes

(1) Changes in significant subsidiaries during the period

(changes in specified subsidiaries resulting in the change in scope of consolidation): None

  1. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
  2. Changes in accounting policies, changes in accounting estimates, and restatement

(ｉ) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

(ⅱ) Changes in accounting policies due to other reasons: None

(ⅲ) Changes in accounting estimates: Yes

(ⅳ) Restatement: None

(4) Number of issued shares (common shares)

(ⅰ) Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022 30,287,810 shares

As of March 31, 2022 30,287,810 shares

(ⅱ) Number of treasury shares at the end of the period

As of June 30, 2022

318,557 shares

As of March 31, 2022

361,957 shares

(ⅲ) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2022 29,958,243 shares Three months ended June 30, 2021 30,000,787 shares

Note: The Company has introduced Board Benefit Trust (BBT). Number of treasury shares includes the following Company's shares held by Board Benefit Trust (BBT) 149,800 shares as of June 30, 2022 and 177,100 shares as of March 31, 2022. Furthermore, treasury shares that are deducted in the calculation of the average number of shares during the period include the following Company's shares held by Board Benefit Trust (BBT) 156,092 shares for the three months ended June 30, 2022 and 92,832 shares for the three months ended June 30, 2021.

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters

(Caution Concerning Forward-Looking Statements)

Earnings forecasts and other forward-looking statements in this report are based on certain assumptions that are deemed reasonable and information available to the Company at the time of this report's preparation. Therefore the Company does not guarantee the achievement of any projections. Actual results may differ significantly from these forecasts for a number of reasons.

(Method of Obtaining Supplementary Explanation Materials)

The materials are disclosed on the Timely Disclosure network (TDnet) on the same day as the date of this report.

- 2 -

Supplementary Materials - Contents

1. Qualitative information regarding financial results for the three months

………………………

4

ended June 30, 2022

(1)

Explanation of operating results

………………………

4

(2)

Explanation of financial position

………………………

4

(3)

Explanation of consolidated earnings forecasts and other forward-looking

………………………

4

statements

2. Consolidated financial statements and significant notes thereto

………………………

5

(1)

Consolidated balance sheets

………………………

5

(2)

Consolidated statements of income and statements of comprehensive income

………………………

9

Consolidated statements of income

………………………

9

for the three months ended June 30, 2022

Consolidated statements of comprehensive income

………………………

11

for the three months ended June 30, 2022

(3)

Notes to the consolidated financial statements

………………………

12

Note on the going-concern assumption

………………………

12

Note on significant changes in shareholders' equity

………………………

12

Adoption of accounting treatment specific to the preparation of quarterly

………………………

12

consolidated financial statements

Changes in accounting policies

………………………

12

Changes in accounting estimates

………………………

12

Segment information

………………………

13

3. Newly executed contracts, operating assets

………………………

15

(1)

Executed contracts volume

………………………

15

(2)

Operating assets

………………………

15

- 3 -

1. Qualitative information regarding financial results for the three months ended June 30, 2022

(1) Explanation of operating results

Newly executed contract volume in the three months ended June 30, 2022 totaled ¥368,775 million, up 9.1% year on year.

In terms of profits, the Company reported net sales of ¥217,415 million, up 53.6% year on year, operating profit of ¥11,381 million, up 3.7% year on year, ordinary profit of ¥13,027 million, up 6.6% year on year, and profit attributable to owners of parent of ¥8,217 million, up 2.8% year on year. Through continuous expansion of our business domains, operating profit, ordinary profit and profit attributable to owners of parent all rose year on year to update their respective record highs for a three-month period. In addition, ordinary profit, which is set as a management goal in the medium-term management plan, has been the highest for the first quarter for six consecutive fiscal years since the fiscal year ended March 31, 2018.

Operating results for each business segment are as follows. Please note that net sales for each segment are "revenues from external customers" and segment profit is the amount shown in reportable segments.

Lease and Installment Sales

Newly executed contract volume in the Lease and Installment Sales segment fell 7.5% year on year to ¥123,993 million and segment operating assets decreased 2.7% from the end of the previous fiscal year to ¥1,709,877 million. Segment net sales increased 58.0% year on year to ¥200,526 million and segment profit increased 25.4% year on year to ¥9,262 million.

Financing

Newly executed contract volume in the Financing segment rose 20.0% year on year to ¥244,690 million, and segment operating assets increased 4.2% from the end of the previous fiscal year to ¥809,375 million. Segment net sales fell 12.0% year on year to ¥5,032 million, and segment profit decreased 18.8% year on year to ¥3,609 million.

Other

Newly executed contract volume in the Other segment rose 4.1% year on year to ¥91 million, and segment operating assets decreased 1.7% from the end of the previous fiscal year to ¥31,248 million. Segment net sales rose 32.9% year on year to ¥11,856 million, and segment profit increased 40.7% year on year to ¥2,368 million.

  1. Explanation of financial position
    As of June 30, 2022, operating assets totaled ¥2,550,501 million, down 0.6% from the end of the previous fiscal year. Total assets amounted to ¥2,941,024 million, down 0.3% from the end of the previous fiscal year. As of June 30, 2022, indirect procurement decreased 1.9% from the end of the previous fiscal year to ¥1,644,910 million, due to decreases in short-term borrowings and long-term borrowings, and direct procurement increased 5.3% from the end of the previous fiscal year to ¥725,626 million, mainly due to the issuance of commercial papers and bonds payable. As a result, the outstanding balance as of June 30, 2022 increased 0.2% from the end of the previous fiscal year to ¥2,370,537 million. The direct procurement ratio was 30.6%, an increase of 1.5 points from the end of the previous fiscal year.
    Total shareholders' equity fell 0.5% from the end of the previous fiscal year to ¥291,127 million mainly due to a decrease in capital surplus despite an increase in retained earnings. Total net assets as of June 30, 2022 amounted to ¥374,064 million, down ¥175 million, or 0.0%, from the end of the previous fiscal year. Shareholders' equity ratio was in line with the end of the previous fiscal year at 11.3%.
  2. Explanation of consolidated earnings forecasts and other forward-looking statements
    No revisions have been made to the consolidated earnings forecasts for the Forecast for Fiscal 2022 announced in Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 on May 10, 2022.

- 4 -

2. Consolidated financial statements and significant notes thereto

  1. Consolidated balance sheets

(¥ millions)

As of March 31, 2022

As of June 30, 2022

Assets

Current assets

Cash and deposits

72,157

78,615

Installment receivables

66,877

61,974

Lease receivables and investments in leases

1,019,764

928,109

Operating loans

316,633

322,277

Accounts receivable - other loans to customers

114,443

112,502

Operational investment securities

323,021

349,724

Other operating assets

23,344

25,765

Accounts receivable - lease

24,807

24,014

Other

66,556

65,288

Allowance for doubtful accounts

(2,717)

(2,608)

Total current assets

2,024,888

1,965,664

Non-current assets

Property, plant and equipment

Assets for lease

Assets for lease

671,643

720,388

Advances for purchase of assets for lease

15,111

13,758

Total assets for lease

686,754

734,146

Other operating assets

31,801

31,248

Construction in progress

4,673

6,472

Own-used assets

3,754

3,754

Total property, plant and equipment

726,984

775,621

Intangible assets

Assets for lease

195

182

Other intangible assets

Goodwill

21,234

20,867

Other

9,367

9,270

Total other intangible assets

30,602

30,137

Total intangible assets

30,797

30,319

- 5 -

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Fuyo General Lease Co. Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 05:13:05 UTC.