Mizuho Leasing Co., Ltd.

Integrated report

2020

Challenging for Further Leap Forward & Value Creation

Sixth Mid-term Management Plan

Desired Future Image of the Mizuho Leasing Group

The Group has rolled out the Sixth Mid-term Management Plan covering a five-year period from April 2019.

Under the plan, we will continue to

Mindset of each employee

Action Guidelines

The Three Cs

Challenge

How the Group should be and

stakeholders the Group should consider

Clients

Employees

Shareholders

Society

Management Policy

1. Respond to customers' needs and provide precise and prompt services by combining the Group's total strength.

Corporate Philosophy

We aim to be a Group which

contributes to society by offering valued financial services which lead to future prosperity.

promote business together with clients and initiatives in focus areas in response to changes in social and industrial structures that have been implemented to date. At the same time, we will offer new solutions as a business development partner for clients in widely expanded business fields in Japan and overseas through alliances with strategic business partners and take on the challenge of co - creating value with clients and expanding business overseas with new business bases.

Change

Create

2. Endeavor to further enhance the Group's reputation and credibility among shareholders and in the market.

3. Strive to create a dynamic corporate culture full of energy and vitality in which proactive, ambitious human resources are fostered and promoted.

4. Comply with the law and its spirit, and aim to be a Group which always recognizes its social responsibility and secures understanding and sympathy from society.

Vision

Value-creating company tackling challenges together with clients

Flow for realization of the vision

Promote business

Tackle new business

Thorough client-oriented

domains transcending

Fulfill corporate social

together with clients as

approach

the framework of

responsibility

their partner

financing

CONTENTS

Value Creation by the Mizuho Leasing Group

  1. Trajectory of the Mizuho Leasing Group
  1. Financial/Non-financialHighlights
  1. 11-yearFinancial Summary
  1. Mizuho Leasing Group's Value Creation Process

Growth Strategy

Strength to Support Growth

27 CSR Activities of the Mizuho Leasing Group: Toward Sustainable Growth

29

Management Structure

31

Corporate Governance

33

Message from Outside Director

35

Compliance and Risk Management

Editorial Policy

This report contains the Mizuho Leasing Group's financial information as well as non- financial information including management strategies, environment, social and corporate governance (ESG) to help stakeholders have a better understanding of the Group's business activities. When we edited this Report, we referred to certain guidelines including "International Framework" issued by the International Integrated Reporting Council (IIRC), and explained the Group's value-creating activities over the medium to long-term in an easy-to-understand and simple manner.

Composition of communication tools

Reporting Period

From April 2019 to March 2020 (including some activities that occurred outside this period)

Entities Covered

This report covers the entire Mizuho Leasing Group.

Notes concerning Future Forecast

13 President's Commitment

  1. Sixth Mid-term Management Plan (FY2019 to FY2023)
  1. Topics in FY2019

21 Business Strategy under the Sixth Mid-term

38

Dialogue with Shareholders and Investors

39

Human Resource Strategy

44

Environmental and Social Activities

Consolidated Financial Data and

Overview

Website: www.mizuho-ls.co.jp

Integrated Report (Japanese and English)

This report contains management policies and future business performance based on the information on hand at the time of the preparation of this report. These statements may contain

Management Plan

  1. Examples of Co-creation of Value with Clients
  1. Reinforcement of Management Base
  2. Funding Policies

Corporate Information

46 Analyses on Business Conditions and Results of Operations

  1. Business Risks and Other Risks
  1. Consolidated Financial Statements
  1. Corporate Information
  1. Stock Information

Report for Shareholders

Report on Corporate

(Japanese and English)

Governance

Securities

Financial Results

CSR Activities

Details

Report

(Japanese and English)

(Website)

Financial information

Non-financial information

certain risks and uncertainties, and as such do not guarantee that such policies and performance will be achieved. Please be advised that any predictions for the future made in this report may differ significantly from the actual results due to various factors.

01

02

Trajectory of the Mizuho Leasing Group

The Mizuho Leasing Group has developed its operations primarily in leasing and installment sales̶the financing of physical items. In addition to financing related to capital expenditure, including industrial and factory equipment, information and communication equipment and medical equipment, we are expanding the scope of our business activities through initiatives in businesses to involve in commercial distributions and a broad range of financial sectors and through M&A activities, as we proactively engage in business in Japan and overseas.

Net Income Attributable to Owners of the Parent (Millions of yen)

Operating Assets (Billions of yen)

*The graph shows results from FY2004 onwards after the Company's listing.

1,211.3

1,092.2

953.7

1,031.2

985.0

928.6

935.2

2006

813.5

2005

Acquires shares of Dai-ichi Leasing Co., Ltd.

Designated an issue on the

9,025

First Section of the Tokyo

8,984

2004

Stock Exchange.

7,981

7,799

Shares listed on the Second

7,019

Section of the Tokyo Stock

Exchange.

5,591

4,296

3,348

2004

2005

2006

2007

2008

2009

2010

2011

Value Creation by the Mizuho Leasing Group

Growth Strategy

Strength to Support Growth

Consolidated Financial Data and Corporate Information

2,090.3

2,021.4

1,683.0

1,581.0

1,608.7

17,512

1,432.3

16,594

1,343.0

1,263.1

2012

13,643

Acquires shares in Mizuho-Toshiba

Leasing Company, Limited.

12,414

8,920

10,531

11,144

11,609

2012 2013 2014 2015 2016 2017 20182019

The Group's Contributions to Society

Sustained growth of companies, industries & technologies

1969 Mizuho Leasing Company is established as a general leasing company under an initiative by The Industrial Bank of Japan, Ltd. (now Mizuho Bank, Ltd.), with the participation of major companies representing Japanese industries.

Establishment of social infrastructure

1972 Begins vendor leases of construction equipment as a pioneer in that field.

1993 Establishes a subsidiary specialized in real estate leasing.

Globalization/improvement in

Health & welfare

Climate change, environmental

mobility

load reduction

Begins leasing business in Thailand in 1 9 9 2,

2000 Business department specializing in medi-

2012 Business department specializing in en-

the Philippines in 1 9 9 8, China in 2 0 0 8, and

cal and welfare services is established.

vironmental business promotion is established.

Indonesia in 2010. Participates in aircraft op-

erating lease business in 2016.

03

04

Value Creation by the Mizuho Leasing Group

Growth Strategy

Strength to Support Growth

Consolidated Financial Data and Corporate Information

Trajectory of the Mizuho Leasing Group

Net Income Attributable to

Owners of the Parent

30,000

March 2019

Enters into capital and business alliance with Mizuho Bank, Ltd., and alliance in leasing and financing business with Marubeni Corporation.

- Becomes an equity-method affiliate of the Mizuho Financial Group, Inc.

- Acquires shares of Mizuho Marubeni Leasing Corporation, beginning joint management with Marubeni Corporation.

October 2019

Company name is changed from IBJ Leasing Co., Ltd. to Mizuho Leasing

Co., Ltd.

March 2020

Acquires equity interests of PLM Fleet, LLC, the largest U.S. frozen/

refrigerated trailer leasing and rental company, and of Aircastle Limited,

a major U.S. aircraft leasing company, launching joint management of

overseas asset financing business with Marubeni Corporation.

April 2020

17,512

Acquires shares of RICOH LEASING COMPANY, LTD., launching business

alliance with Ricoh Company, Ltd. and RICOH LEASING COMPANY, LTD.

Enhancing overseas asset financing business

Alliance with Mizuho

Corporate value

Expanding client base of mid-sized

& smaller companies

(Millions of yen)

The Group's Accumulated Strengths

High expertise and

Strong relationship with

Well-balanced portfolio

Strong fundraising base

extensive know-how

large and mid-sized

to solve clients' issues

corporate clients

2018

2019

2023(Target)

05

06

Financial/Non-financial Highlights

Value Creation by the Mizuho Leasing Group

Growth Strategy

Strength to Support Growth

Consolidated Financial Data and Corporate Information

The Mizuho Leasing Group comprises Mizuho Leasing, 31 consolidated subsidiaries and six equity-method affiliates (as of March 31, 2020). Centered on this structure, we provide wide-ranging financial and business services, including leasing, installment sales and loans in Japan and overseas by utilizing our understanding of equipment and extensive financial expertise.

Leasing and Installment Sales FY2019 Gross profit ¥34.2 billion

Financing and Other

FY2019 Gross profit ¥16.4 billion

Leasing and

Financing

Installment Sales

30%

68%

FY2019

Gross profit

¥50.5 Billion

Other

2%

Number of employees

  • Male ■ Female

(Non-consolidated/persons)

800

700

661

687

621

600

573

594

253

245

500

201

217

184

400

300

200

389

393

404

416

434

100

0

2015

2016

2017

2018

2019

Balance in the global area

¥142.5 billion ¥234.8 billion

2018

2019

Net income attributable to owners of the parent

Operating assets

Number of women in managerial posts

(Billions of yen)

(Billions of yen)

(Non-consolidated/persons)

20

17.5

2,500

12

16.6

2,021.4 2,090.3

10

2,000

10

15

13.6

1,581.0 1,608.7 1,683.0

11.6

12.4

8

1,500

10

6

1,000

4

3

5

2

2

500

2

1

0

2015

2016

2017

2018

2019

0

2015

2016

2017

2018

2019

0

2015

2016

2017

2018

2019

Reuse rate* (FY2019)

72%

  • Reuse rate: Number of equipment sold ÷ Number of equipment for which the lease term or re-lease term has expired

Annual dividend per share/dividend payout ratio

ROE

Number of employees who took childcare leave

Composition of the Board of Directors

■ Annual dividend per share

Dividend payout ratio (%)

■ Male ■ Female

(End of June 2020)

(yen)

(%)

(Non-consolidated/persons)

11 directors

100

12

16

15

7 outside directors, 1 female director

78

82

14

80

70

11

12

64

10.3

8

60

9.8

60

10

10

9.5

9.4

9.6

22.7

22.0

22.0

21.9

20.1

8

6

6

6

40

9

6

5

20

8

4

5

7

6

6

5

Outside directors

2

0

0

0

1

Ratio of outside directors 64%

2015

2016

2017

2018

2019

2015

2016

2017

2018

2019

2015

2016

2017

2018

2019

07

08

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

IBJ Leasing Co. Ltd. published this content on 04 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 March 2022 15:50:01 UTC.