JAPAN INVESTMENT ADVISER CO., LTD. Financial Results
for the First Quarter of FY2021
April 30, 2021
Japan Investment Adviser Co., Ltd.
Stock Code: 7172 | https://www.jia-ltd.com |
Contents
1. | Company Overview | P03〜P08 |
2. | Business Overview | P09〜P15 |
3. | First Quarter of FY2021 Financial Results | P16〜P20 |
4. | FY2021 Earnings Forecasts | P21〜P24 |
5. | Shareholder Returns | P25〜P27 |
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 2 |
1. Company Overview
3
Corporate Philosophy
For shareholders
We will contribute to the prosperity of our shareholders by increasing corporate value with an aim to achieve a steady and rapid growth on a sustainable basis.
For clients
We are dedicated to contributing to the prosperity of our corporate and individual clients by providing financial products and services that are backed by the support and trust of our clients.
For business partners
We aim to fulfill our social responsibility and achieve business growth together with our business partners empowered by their support and trust.
For our officers and employees
We will build a work environment to help each of our staff to develop professionalism and fully exercise their ability. We will foster an organization and a corporate culture that prioritize openness and creativity to encourage our staff to take on new challenges.
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 4 |
Corporate Profile
Japan Investment Adviser Co., Ltd. | ||
Company Name | ||
Kasumigaseki Common Gate West Tower | ||
Head Office | ||
3-2-1 Kasumigaseki Chiyoda-ku Tokyo | ||
President, CEO Naoto Shiraiwa | ||
Representative | ||
September 2006 (Fiscal Year-end: December 31) | ||
Established | ||
Financial solutions business, Media-related business | ||
Business | ||
¥11,670 million | ||
Paid-in Capital | ||
Tokyo Stock Exchange - First section (Stock Code: 7172) | ||
Stock Exchange Listing | ||
Non-consolidated: 146; Consolidated: 196 | ||
Employees | ||
Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., | ||
Financial Institutions | ||
Resona Bank, Limited., Sumitomo Mitsui Trust Bank, Limited, The Norinchukin | ||
Bank, The Chiba Bank, Ltd., Daishi Hokuetsu Bank. Ltd. and the other 64 banks | ||
Top shareholders (58.2% shares, excluding treasury stock) as of December 31, 2020 | ||
Major Shareholders | ||
Naoto Shiraiwa (22.9%) | ||
KODO Holdings Co., Ltd. (21.3%) | ||
Custody Bank of Japan, Ltd. (Trust account) (10.4%) | ||
Yoshitaka Murata (1.2%) | ||
Teiji Ishikawa (1.2%) | ||
Government of Norway (1.2%) | ||
Independent Auditor | Grant Thornton Taiyo LLC | 5 |
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | ||
Our Gourp Business
Our group core business is Operating Leases Business, which is the structuring and sale of unique financial products (Japanese Operating Leases, JOL/ JOLCO) to investors, namely small and medium-sized enterprises (SMEs), through a nationwide network of banks, securities firms and other financial institutions, as well as public tax accounting firms and certified public accountants.
In addition to the Operating Lease Business, the Company provides comprehensive solution services to SMEs, including solutions to issues such as lack of human resources and successors, as well as financing and strategic planning support for sustainable growth.
Parts out & | Operating Lease Business | Renewable |
Conversion | Energy | |
Business | Business |
Insurance
Agency
Business
M&A Advisory
Business
Financial Solutions Business
+
Media-related Business
Agri &Bio
Business
Real Estate
Business
Media
Business
Private Equity | Recruitment | IPO Consulting | IR Advisory |
Investment | Business | Business | Business |
Business |
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 6 |
Our Group Company
Japan Investment Advisor | ||||
JIA | ||||
• | Renewable Energy Business(solar power | • | Real Estate Business | |
generation and other) | • | Recruitment Business | ||
• | M&A Advisory Business | • | Agri & Bio Business |
- IPO Consulting Business
Vallair Capital SAS（40％ Affiliates）
Vallair
- Parts Out Business is a business that dismantles retired aircraft, manages the inventory of each part, and sells it to users around the world
- Conversion Business is a business that converts old passenger planes into freighters
Finspire Inc. | Fins |
（100% owned subsidiary）
- A sales for Japanese operating lease products (JOLCO, JOL) for Japanese SMEs
JP Lease Products & Services Co., Ltd.
(100% owned subsidiary)
- A sales for Japanese operating lease products (JOLCO, JOL) for Japanese SMEs
• Life and non-life insurance agency | |
JLPS |
Private Equity Business | Management and Investment for value-up | ||||
JIA | • | Health Tech | • | After-School Day Service | |
• | AI Related | • | Recruitment | ||
• | Real Estate |
Nihon Securities Journal Inc.
（100% owned subsidiary） | NSJ |
Publishing "Nihon Securities Journal" The website "Nihon Securities Journal Digital."
IR Advisory Business
（Briefings for individual investors）
JLPS Holding Ireland Limited (100% owned subsidiary)
One-stop management of aviation operating leases | ||
in Ireland | ||
• | Origination | |
• | Financing | |
• | Lease Management | |
JLPS-Ire | • | Exit/Remarketing |
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Our Group History
Establish | JIA | 2006 |
Established Japan Investment Adviser Co., Ltd. and started an operating lease business for maritime containers.
JIA 2007
Started M&A advisory business.
Fins 2007
Established CAIJ Inc. (currently Finspire Inc.)
※JV of leasing business of maritime containers that utilized portfolio of America CAI International, Inc. (listed on NYSE)
JLPS 2011
Established JP Lease Products & Services Co., Ltd. (JLPS) and started an operating lease business for aircraft.
JLPS 2014
Started structuring and selling the No. 1 Fund of solar power generation business.
List | |||
JIA | 2014 | ||
MOTHERS | |||
Got listed on Tokyo Stock Exchange Mothers Section. | |||
JLPS | 2015 | ||
Started an operating lease business for Vessels. | |||
NSJ | 2015 | ||
Acquired all | shares of Nihon Securities Journal Inc. and started | ||
media & IR supporting business. | |||
100 billion yen
List 1st Section of TSE
JIA | 2015 |
Started private equity investment business.
※The first IPO (Bank of Innovation ,Inc. Stock Code: 4393)
Vallair 2015
Started aircraft part-out and conversion business through a capital and business tie-up with Valliere Aviation S.A. (currently Vallair Capital SAS)
JIA 2016
Started IPO consulting business.
Fins 2016
Acquired all shares of CAIJ Inc. (currently Finspire Inc.) (made into a wholly owned subsidiary company)
Fins 2017
Started insurance agency business.
JLPS 2019
Succeeded the insurance agency business of Finspire Inc.
JLPS 2019
Annual sales of equity underwritten in Operating Lease Business exceeded 100 billion yen.
JLPS-Ire2019
Head office was established in Shannon, Ireland, and began full- scale operations.
JIA 2020
Changed to the First Section of Tokyo Stock Exchange.
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2. Business Overview
9
Highlights for the First Quarter of FY2021
Profit declined from 2020, but exceeded the result in the first quarter of 2019.
The needs from investors in the operating lease business remain strong, and the impact of the coronavirus pandemic is within the assumed range, so business progressed as planned.
（Millions of yen）
Net Sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Q1 FY2019 | Q1 FY2020 | Q1 FY2021 | |||
Result | Result | Result | YoY change | YoY change(%) | |
2,582 | 7,380 | 3,732 | (3,648) | (49.4%) | |
1,161 | 3,057 | 1,938 | (1,119) | (36.6%) | |
913 | 2,867 | 2,425 | (441) | (15.4%) | |
503 | 2,023 | 1,370 | (653) | (32.3%) | |
Total amount of equity | 19,411 | 32,291 | 18,099 | (14,191) | (43.9%) |
sales※ |
Note: Transfer of equity interest in special-purpose companies(SPC) as defined in Article 2, Paragraph 2-5 of the Financial Instruments and Exchange Act
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Business Segment
Enrichment of the portfolio in the financial solution business.
While the operating lease business was stagnant due to the shortage of transactions, the enrichment of the business portfolio, including the M&A advisory business, paid off little by little.
Q1 FY2019 | Q1 FY2020 | Q1 FY2021 | ||||
Business units （Millions of yen） | ||||||
Result | Result | Result | YoY | YoY change | ||
change(%) | ||||||
Operating Lease Business | 2,181 | 7,182 | 3,494 | (51.4％) | (3,688) | |
Renewable Energy Business | 95 | 78 | 86 | 10.3％ | 8 | |
Aircraft Part-Out & Conversion Business | 5 | 42 | 0 | (98.7％) | (42) | |
Insurance Business | ||||||
Other Financial | M&A Advisory Business | |||||
Recruitment Business | 228 | 20 | 100 | 403.1％ | 80 | |
Solution Business | ||||||
Private Equity Investment Business | ||||||
IPO Consulting Business | ||||||
Media- related Business | 70 | 56 | 50 | (11.2％) | (6) | |
Total | 2,582 | 7,380 | 3,732 | (49.4％) | (3,648) |
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Deals Structured
(Operating lease business, Renewable energy business）
Deals Structured by Type of Asset
Change in Amount of Deals Structured
(Millions of yen) | Q1 FY2020 | Q1 FY2021 |
(Millions of yen)
80,000
Amount of deals structured
Aircraft | 63,706 | 20,503 |
（4 deals） | （2 deals） | |
Vessel | 0 | 0 |
（0 deal） | （0 deal） | |
60,000
59,428
63,706
Container box | 0 | 442 |
（0 deal） | （1 deal） | |
Solar | 0 | 0 |
photovoltaic | ||
（0 deal） | （0 deal） | |
generation | ||
Total | 63,706 | 20,946 |
（4 deals） | （3 deals） | |
40,000
20,000
0
40,543
20,946
2018-Q12019-Q12020-Q12021-Q1
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Equity Sales
(Operating lease business, Renewable energy business）
Equity Sales by Type of Asset
Change in Amount of Equity Sales
(Millions of yen) | Q1 FY2020 | Q1 FY2021 |
Aircraft | 32,141 | 16,939 |
Vessel | 0 | 0 |
Container box | 150 | 1,160 |
Solar | 0 | 0 |
photovoltaic | ||
generation | ||
Total | 32,291 | 18,099 |
(Millions of yen)
120,000
100,000
80,000
60,000
40,000
20,000
0
Q1 Q2 Q3 Q4
104,181 | |||
90,783 | |||
42,490 | 79,301 | ||
27,969 | 14,561 | ||
Forecast | |||
11,665 | |||
21,042 | 19,230 | 56,000 | |
20,783 | |||
21,956 | 23,048 | ||
20,004 | 19,411 | 32,291 | 18,099 |
2018 | 2019 | 2020 | 2021 |
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Equity underwritten (Operating lease business)
Equity underwritten
at the end of the term by Type of Asset
(Millions of yen) | Q1 FY2020 | Q1 FY2021 |
Aircraft | 51,736 | 11,739 |
（19 deals） | （6 deals） | |
Vessel | 0 | 0 |
（0 deal） | （0 deal） | |
Container box | 9,750 | 0 |
（3 deals） | （0 deal） | |
Total | 61,487 | 11,739 |
（22 deals） | （6 deals） | |
Balance of Equity underwritten
at the end of the term
(Millions of yen) | equity underwritten | ||||
80,000 | |||||
61,487 | |||||
60,000 | |||||
50,325 | |||||
45,433 | |||||
40,000 | |||||
20,000 | 11,739 | ||||
0 | |||||
'18-Q1 | '19-Q1 | '20-Q1 | '21-Q1 | ||
【Notice】 (Millions of yen)
Due to a scheme different from the previous one, the assets before the establishment of a portfolio are included in the following items other than "Equities underwritten" as the assets to be handled as products.
Advance payments-trade | 16,579 | （YoY:8,631) |
Advanced paid | 17,482 | （YoY:13,692） |
Investment securities | 7,717 | （YoY:4,019） |
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Sales Network (Business Matching Partners)
Number of business matching contracts
800 | Accounting/tax accounting firms, etc. | Regional banks and Shinkin Banks | Securities companies | ||||||||||
508 | 549 | ||||||||||||
600 | 10 | ||||||||||||
412 | 10 | ||||||||||||
100 | |||||||||||||
306 | 10 | 98 | |||||||||||
400 | |||||||||||||
169 | 192 | 10 | 93 | ||||||||||
117 | 9 | 75 | |||||||||||
200 | 9 | 400 | 439 | ||||||||||
7 | 53 | 309 | |||||||||||
40 | 221 | ||||||||||||
22 | 120 | 130 | |||||||||||
0 | 88 | ||||||||||||
End-FY2015 | End-FY16 | End-FY17 | End-FY18 | End-FY19 | End-FY20 | End of Q1 FY21 | |||||||
During the first quarter of 2021, the number of business matching partners presenting the Company to investors increased by 41 to a total of 549.
In addition to the channel of banks and Shinkin banks, which has been one of our strengths, we increased contracts with tax accountant offices and accounting firms.
It will become a strong advantage in marketing activities after the pandemic subsides.
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First Quarter of FY2021
3. Financial Results
16
Q1 FY2021 Consolidated Income Statement Summary
（Millions of yen） | Q1 FY2020 | Q1 FY2021 | ||
Result | Result | YoY Change(%) | YoY change | |
Net Sales | 7,380 | 3,732 | (49.4%) | (3,648) |
Costs of sales | 3,232 | 568 | (82.4%) | (2,663) |
Gross profit *1 | 4,148 | 3,163 | (23.7%) | (984) |
SG&A expenses *2 | 1,090 | 1,225 | 12.4% | 134 |
Operating profit *3 | 3,057 | 1,938 | (36.6%) | (1,119) |
Non-operating | 308 | 1,060 | 243.8% | 751 |
income *4 | ||||
Non- operating | 499 | 572 | 14.7% | 73 |
expenses *5 | ||||
Ordinary Profit | 2,867 | 2,425 | (15.4%) | (441) |
Profit attributable to | 2,023 | 1,370 | (32.3%) | (653) |
owners of parent | ||||
Point
※1 Gross profit
Gross profit margin increased 28.6% to 84.8%.
A return to traditional profitability after a temporary decline in the same period last year due to product specificity.
※2 SG&A expenses
Primarily as a result of increased personnel costs,
SG&A was 32.8%, up 18.1 points from the previous year.
※3 Operating profit
Operating margin was 51.9%, up 10.5 points from the previous year.
※4 Non-operating income
An increase of ¥751 million
Increase of ¥747 million in foreign exchange gain (FX losses in previous year ¥103 million.)
※5 Non-operating expenses
An increase of ¥73 million
Increase of ¥117 million in equity in loss of affiliates Increase of ¥136 million in commission fees (due to cross- period changes)
Increase of 61 million in interest expenses (due to reduction of loans)
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Trends by quarter
Year on Year Comparison(FY2019,FY2020,FY2021)
Net Sales
（Millions of yen）
Operating
profit
(Millions of yen）
Net profit
（Millions of yen）
Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||||||||
0 | 2,500 | 5,000 | 7,500 | 10,000 | 12,500 | 15,000 | 17,500 | 20,000 | |||||||||||||||||||||||||||||||
16,647 | |||||||||||||||||||||||||||||||||||||||
FY2019 | 2,582 | 3,464 | 2,742 | 7,858 | |||||||||||||||||||||||||||||||||||
FY2020 | 7,380 | 3,164 | 3,569 | 3,592 | 17,707 | ||||||||||||||||||||||||||||||||||
FY2021 | 3,732 | 13,000 | |||||||||||||||||||||||||||||||||||||
(Forecast) | |||||||||||||||||||||||||||||||||||||||
0 | 1,000 | 2,000 | 3,000 | 4,000 | 5,000 | 6,000 | 7,000 | 8,000 | 9,000 | ||||||||||||||||||||||||||||||
8,188 | |||||||||||||||||||||||||||||||||||||||
FY2019 | 1,161 | 1,986 | 832 | 4,208 | |||||||||||||||||||||||||||||||||||
FY2020 | 3,057 | 1,378 | 1,101 | 1,472 | 7,009 | ||||||||||||||||||||||||||||||||||
FY2021 | 1,938 | 4,630 | |||||||||||||||||||||||||||||||||||||
(Forecast) | |||||||||||||||||||||||||||||||||||||||
0 | 500 | 1,000 | 1,500 | 2,000 | 2,500 | 3,000 | 3,500 | 4,000 | 4,500 | 5,000 | |||||||||||||||||||||||||||||
4,555 | |||||||||||||||||||||||||||||||||||||||
FY2019 | 503 | 1,262 | ▲ | 122 | 2,913 | ||||||||||||||||||||||||||||||||||
FY2020 | 2,023 | 689 | 751 | 3,831 | |||||||||||||||||||||||||||||||||||
FY2021 | 1,370 | 2,800 | |||||||||||||||||||||||||||||||||||||
(Forecast) | |||||||||||||||||||||||||||||||||||||||
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Q1 FY2021 Consolidated Balance Sheet Summary (1)
（Millions of yen） | Mar 31, 2020 | Dec 31, | Mar 31, 2021 | Point | |||||
2020 | |||||||||
Result | YoY change | QoQ change | |||||||
Cash and deposits *1 | 41,976 | 21,377 | 13,100 | (28,875) | (8,277) | *1 Cash and depoits | |||
Decline due to reduced assets in response to Corona disaster. | |||||||||
Accounts receivable - trade | 5,871 | 4,076 | 5,528 | (342) | 1,452 | ||||
*2 Merchandise | |||||||||
Merchandise *2 | 4,669 | 7,845 | 11,169 | 6,499 | 3,324 | ||||
Mainly the inventory for the parts-out & conversion business | |||||||||
Equity underwritten *3 | 61,487 | 28,431 | 11,739 | (49,747) | (16,691) | and for the solar power generation funds after the exercise of | |||
purchase. | |||||||||
Costs on uncompleted - trade | 2,012 | 564 | 1,140 | (872) | 576 | *3 Equity underwritten | |||
Advanced payment - trade | *4 | 7,947 | 15,971 | 16,579 | 8,631 | 608 | Investment in silent partnership to be sold in the future in the | ||
operating lease business | |||||||||
Advanced paid *5 | 3,790 | 19,769 | 17,482 | 13,692 | (2,286) | *4 Advanced payment - trade | |||
Other | 4,678 | 7,225 | 6,758 | 2,079 | (467) | trade mainly for purchase of Aircraft to develop investment | |||
products. | |||||||||
132,434 | 105,261 | 83,499 | |||||||
Current assets | (48,934) | (21,761) | ※ Plans to transfer all the balance to equity underwritten. | ||||||
※ The company may sell aircraft. | |||||||||
Tangible Fixed Assets | 231 | 357 | 378 | (147) | 21 | ||||
*5 Advanced paid | |||||||||
Intangible Fixed Assets | 127 | 113 | 106 | (20) | (6) | Mainly temporary advances paid before sale to investors for | |||
the operating lease business and for the renewable energy | |||||||||
Investment and other assets | *6 | 6,739 | 6,354 | 12,381 | 5,642 | 6,026 | |||
business. | |||||||||
*6 Investments and other assets | |||||||||
Non-current assets | 7,097 | 6,826 | 12,867 | 5,769 | 6,041 | ||||
Increased 6,026 million yen from the end of the previous term. | |||||||||
Deferred assets | 107 | 83 | 75 | (31) | (7) | ||||
Among them, the funds for the transactions in the new scheme | |||||||||
grew 3,210 million yen. | |||||||||
Total assets | 139,638 | 112,170 | 96,442 | (43,196) | (15,728) | ||||
19 | |||||||||
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | |||||||||
Q1 FY2021 Consolidated Balance Sheet Summary (2)
（Millions of yen） | Mar 31, 2020 | Dec 31, | Mar 31, 2021 | Point | ||||
2020 | ||||||||
Result | YoY change | QoQ change | ||||||
Accounts payable - trade | 16 | 18 | 67 | 51 | 49 | *1. Short-term loans payable | ||
Short-term loans payable *1 | 84,486 | 59,684 | 44,718 | (39,767) | (14,965) | |||
Short-term loans payable are mainly used by the Group to | ||||||||
temporarily underwrite special-purpose companies(SPC) | ||||||||
Unearned revenue *2 | 9,769 | 2,772 | 1,717 | (8,052) | (1,054) | |||
investments on the premise that the status will be transferred | ||||||||
Income taxes payable | 278 | 15 | 473 | 194 | 457 | to investors. | ||
→ The proceeds from the transfer of the Equity Underwritten | ||||||||
1,102 | 1,884 | 1,011 | ||||||
Other | (21) | (873) | to the investors will be used to repay the loans. | |||||
→Decrease of 14,965 million yen in short-term loans payable | ||||||||
95,653 | 64,374 | 47,989 | ||||||
Current liabilities | (47,664) | (16,385) | compared to the end of the previous fiscal year due to the | |||||
decrease in the balance of Equity Underwritten | ||||||||
Non-current liabilities | 6,253 | 8,710 | 7,986 | 1,733 | (723) | |||
Total liabilities | 101,906 | 73,084 | 55,975 | (45,931) | (17,109) | *2. Unearned revenue | ||
Capital stock | 11,658 | 11,670 | 11,670 | 11 | 0 | |||
Of the business consignment fees received from SPC, | ||||||||
the amount for the period before the transfer to investors. | ||||||||
Capital surplus | 11,593 | 11,605 | 11,605 | 11 | 0 | |||
Retained earnings | 15,804 | 17,134 | 18,054 | 2,250 | 920 | *3. Equity ratio | ||
Treasury shares | (1,470) | (1,470) | (1,470) | 0 | 0 | |||
Equity ratio rose due to a decline in the balance in Equity | ||||||||
Underwritten and progress in repayment of loans. | ||||||||
Shareholders' equity *3 | 37,585 | 38,938 | 39,859 | 2,274 | 920 | |||
End of FY 2020 | 34.7 % | |||||||
607 | ||||||||
Other | 146 | 146 | 460 | 460 | End of Q1FY 2021 | 41.7 % | ||
Total net assets | 37,732 | 39,085 | 40,466 | 2,734 | 1,380 | |||
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For FY2021
4. Earnings Forecasts
21
Earnings Forecast for FY2021
The initial forecast unchanged.
・Amid the coronavirus crisis, we forged solid footing and formed a portfolio of deals carefully. Accordingly, the number of deals sold in the second and third quarters was small.
・The formation of deals to be sold in the fourth quarter and the activities for enriching the business portfolio are ongoing.
（Millions of yen）
Net Sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
FY 2020 | FY 2021 | |||||||
1st half | Fiscal year | 1st half | Fiscal year | |||||
Result | Result | Forecast | Changes(%) | Forecast | Changes(%) | |||
10,544 | 17,707 | 5,520 | (47.7%) | 13,000 | (26.6%) | |||
4,436 | 7,009 | 1,950 | (56.0%) | 4,630 | (34.0%) | |||
3,979 | 6,064 | 1,880 | (52.8%) | 4,070 | (32.9%) | |||
2,712 | 3,831 | 1,330 | (51.0%) | 2,800 | (26.9%) | |||
Total amount of equity | 53,074 | 79,301 | 20,000 | (62.3%) | 56,000 | (29.4%) | |
sales※ | |||||||
Note: Transfer of equity interest in special-purpose companies(SPC) as defined in Article 2, Paragraph 2-5 of the Financial Instruments and Exchange Act
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Consolidated Results
Development of the business base for returning to the high-growth model in the post-pandemic era.
Sales | Net profit | Net Profit margin(%) | ||||
31.8% | 33.4% | |||||
27.2% | 27.4% | |||||
23.5% | 21.6% | 21.5% | ||||
(millions of yen) | ||||||
20,000 | 16,647 | 17,707 | ||||
15,036 | ||||||
13,000 | ||||||
10,000 | 8,568 | |||||
5,913 | 5,025 | 4,555 | 3,831 | |||
2,805 | 2,726 | 2,800 | ||||
1,390 | ||||||
764 | ||||||
0 | ||||||
FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 |
(Forecast) |
In FY2020
To fortify our business foundation to tolerate the worsening of the business environment amid the coronavirus crisis
In FY2021
To enrich our business portfolio, in preparation for the economic recovery after the subsiding of the pandemic
Post-pandemiceraReturn to the high-growth model
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Risk factors related to business performance in COVID-19
1. Risks on supply-side
- Due to deterioration in performance of lessees, including airline companies ・・・Risks to decrease opportunities to make deals
Due to the deterioration of financing environment・・・Risks to decrease opportunities to make deals
2. | Risks on demand-side | ||
Due to deterioration in performance of investors (SMEs nationwide) | ・・・Risks to lose the willingness to invest | ||
3. | Risks on portfolio assets | ||
Related to the operating lease business | ・・・Risks to degrade the value of assets owned | ||
4. | Risks on business operation | ||
Through the spread of the virus inside our company | ・・・ Risk to hinder smooth business continuity |
Our group will take appropriate measures for controlling the above risks,
but the business performance of our group may largely differ from the projections due to prolonged spread of COVID-19.
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5. Shareholder Returns
25
Shareholder Returns (dividend)
Initial forecast unchanged
・Our basic policy is to pay dividends based on a balance between performance-linked and stable dividends, while taking into consideration the balance between the expansion of the financial base and human investment to improve business performance.
・Expect to pay the same amount of dividends as in the previous fiscal year despite the forecast of lower profits in 2021
Dividends(JPY) | Amount of | Payout Ratio | DOE | |||
dividends | ||||||
Interim | Year-end | Annual | （Millions of yen） | （％） | （％） | |
FY2016 | 4.0 | 6.0 | 10.0 | 121 | 8.5 | 2.7 |
FY2017 | 6.0 | 6.0 | ― | 235 | 8.4 | 2.2 |
FY2018 | 5.5 | 9.5 | 15.0 | 446 | 8.3 | 1.9 |
FY2019 | 9.5 | 12.5 | 22.0 | 655 | 14.4 | 1.9 |
FY2020 | 16.0 | 16.0 | 32.0 | 959 | 25.0 | 2.6 |
FY2021(Forecast) | 16.0 | 16.0 | 32.0 | 959 | 34.3 | 2.4 |
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 26 |
Shareholder Returns (Incentives)
[Descriptions of shareholder incentives in FY2020]
The incentive plan for shareholders to encourage more shareholders to maintain their investment loyalty over the medium- to long-term period.
We offer subscription coupons for the Japan Securities Journal Digital Edition, which is operated by our subsidiary, Japan Securities Journal and QUO cards.
Note: The contents of the shareholder incentives are subject to change.
100 or more and | |
Less than 1 year of continuous holding | |
period | less than 2,000 shares |
2,000 shares or more | |
100 or more and | |
Continuous holding period of 1 year or | |
more but less than 2 years | less than 2,000 shares |
2,000 shares or more | |
100 or more and | |
Continuous holding period of 2 years or | |
more | less than 2,000 shares |
2,000 shares or more |
Nihon Securities Journal Digital | Unlimited reading of back issues |
The next day's newspaper will be released at noon.
Use of sophisticated tools such as chart analysis
Nihon Securities Journal | Search |
3-month subscription to the Nihon Securities Journal Digital + Quo Card 1,000 yen
6-month subscription to the Nihon Securities Journal Digital + Quo Card 3,000 yen
6-month subscription to the Nihon Securities Journal Digital + Quo Card 3,000 yen
12-month subscription to the Nihon Securities Journal Digital + Quo Card 5,000 yen
6-month subscription to the Nihon Securities Journal Digital + Quo Card 5,000 yen
12-month subscription to the Nihon Securities Journal Digital + Quo Card 5,000 yen
Note: For details, please refer to the "Shareholder Benefits" section of our website at https://www.jia-ltd.com/ir/dividned/.
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 27 |
Disclaimer
The information contained in this document is for informational purposes only and is not intended as a
solicitation for securities.
This presentation material contains information that constitutes forward-looking statements. Such forward-
looking statements are not guarantees of future performance and involve risks and uncertainties, and actual
results may differ from those in the forward-looking statements as a result of various factors including changes
in managerial circumstances.
For further information...
Investor Relations Group.
Japan Investment Adviser Co., Ltd. https://www.jia-ltd.com/en/contact/ Tel : +81-3-6550-9307
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 28 |
Deals Structured
(Operating lease business, Renewable energy business）
Deals Structured by Type of Asset
(Millions of yen) | Q1 FY2020 | Q1 FY2021 |
Aircraft | 63,706 | 20,503 |
（4 deals） | （2 deals） | |
Vessel | 0 | 0 |
（0 deal） | （0 deal） | |
Container box | 0 | 442 |
（0 deal） | （1 deal） | |
Solar | 0 | 0 |
photovoltaic | ||
（0 deal） | （0 deal） | |
generation | ||
Total | 63,706 | 20,946 |
（4 deals） | （3 deals） | |
Change in Amount of Deals Structured
400,000 | Q1 | Q2 | Q3 | Q4 | |||||||||
342,566 | |||||||||||||
300,000 | 31,692 | ||||||||||||
242,065 | 114,653 | ||||||||||||
200,000 | 75,292 | 95,064 | |||||||||||
52,448 | |||||||||||||
155,678 | 22,212 | ||||||||||||
100,000 | |||||||||||||
54,897 | 3,718 | ||||||||||||
5,428 | |||||||||||||
59,428 | 40,543 | 63,706 | 20,946 | ||||||||||
0 | |||||||||||||
2018 | 2019 | 2020 | 2021 | ||||||||||
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36
Trend of Investors （Operating Lease business）
Cumulative number of anonymous association investments in Operating Lease Business at end of period
3,000
2,000
Number of investors
2,701 | 2,832 | ||||||
1,000 | 899 | 1,442 | 2,033 | ||||
406 | 559 | ||||||
0 | |||||||
End-FY2015 | End-FY16 | End-FY17 | End-FY18 | End-FY19 | End-FY20 | End of Q1 FY21 | |
- The silent partnership members in Operating Lease Business are mainly SMEs in Japan. By the end of March 2021, there were 2,832 silent partnership investors in operating lease.
- The JIA group offers not only operating lease investment products, but also financial solution services for SMEs management issues.
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37
Forward looking statement
- In preparation for the economic recovery after the subsiding of the pandemic, we will concentrate on the following measures:
- Redevelopment of the Operating Lease Business
- Response to the structural change in the Renewable Energy Business
- Reform of the business portfolio
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 38 |
1. Redevelopment of the Operating Lease Business
Diversification of the structure for
making deals
- In 2020, the creation of deals was stagnant due to the coronavirus crisis.
- Therefore, the number of deals in the second and third quarters of 2021 was small.
-
Mainly in Europe, vaccination progressed, economic activities started recovering, and the negotiation for creating deals is becoming active.
In the conventional scheme, it took about 1 year to sell products in most cases.
We are developing a new scheme to sell products in the fourth quarter.
Balance of equities underwritten as of the end of 1Q
and the variation in sales from 2Q to 4Q
(millions of yen) | Balance of equities underwritten as of the end of 1Q |
Sales from 2Q to 4Q |
90,000 | ||||
84,769 | ||||
70,968 | 61,487 | |||
60,000 | ||||
50,325 | ||||
45,433 | ||||
47,010 | 37,900 | |||
30,000 | ||||
11,739 | ||||
0 | ||||
FY2018 | FY2019 | FY2020 | FY2021 | |
(Forecast) | ||||
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 39 |
2. Response to the structural change in the Renewable Energy Business
It has been 6 years since Renewable Energy business start-up →our business structure has changed.
Previously, our sales were composed of commissions of sales of solar power generation funds and properties.
- By the end of fiscal 2020, thirteen funds for solar power generation business were redeemed, and currently, main revenue sources are the management fees for existing properties and the income from electricity sale for redeemed properties.
- In the economic environment filled with uncertainties, we will seek opportunities to sell funds and properties in a prudent manner while putting importance on the composition of recurring revenues.
- We will work on Renewable Energy Business in
addition to solar power generation, with the aim of contributing to the attainment of SDGs.
Renewable Energy Business Sales
Management fees, Electricity sales revenue
Income from fund sales and resale
(millions of yen)
500
400 | ||
75 | 414 | |
88 | ||
300 | ||
200
329 284
100
85
0
FY2018 FY2019 FY2020 Q1FY2021
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved. | 40 |
3. Reform of the business portfolio
Enrichment of the portfolio for the financial solution business
To enhance strengths | To work on them intensively | |||
as next growth-strategic business | ||||
Existing products × New channel | ||||
New products × Existing channel | ||||
Division to small lots | Establishment of a core business utilizing our financial power | |||
Aircraft | Solar | Real estate | M&A | PE investment |
power | Advisory | |||
business | business | |||
generation | business | |||
Other | Other |
Personnel introduction business, business succession | |
New products | |
consultancy, IPO consultancy, etc. | |
To assist SMEs that underpin the Japanese economy in "exerting potential abilities" and "supporting business continuity."
Copyright © Japan Investment Adviser Co., Ltd. All rights reserved.
41
Topic : Corporate Governance System
Overview of Corporate Governance System
Improvement of our governance structure
・At the annual meeting of shareholders in March 2021, new outside directors were appointed.
→ Four out of 8 directors became outside ones.
・The advisory committee on nomination and remuneration was newly established.
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42
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Japan Investment Adviser Co. Ltd. published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 06:05:08 UTC.
