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Presentation materials for financial results8793NEC Capital Solutions LimitedFinancials (excluding banks)

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter of the fiscal year ending March 2027, revenue and profit increased, driven mainly by the Public and ICT Infrastructure Business and the Investment Business. Net income attributable to owners of the parent rose 3.4% year on year to ¥2.3 billion. Meanwhile, some businesses, including the Real Estate and Energy Business, reported lower revenue and profit, and the equity ratio declined due to upfront investment to build up operating assets.

Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
3.4
Year-on-year change in net income attributable to owners of the parent (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales747 Hundreds of millions of yen+14.9%
Operating profit37 Hundreds of millions of yen+54.7%
Ordinary income42 Hundreds of millions of yen+39.9%
Net income23 Hundreds of millions of yen+3.4%
Results for the three months of the current quarter
Net Sales
747 Hundreds of millions of yen
Operating profit
37 Hundreds of millions of yen
Ordinary income
42 Hundreds of millions of yen
Profit attributable to owners of parent for the quarter
23 Hundreds of millions of yen
Full-year earnings forecast
Net Sales
3,100 Hundreds of millions of yen
Operating profit
165 Hundreds of millions of yen
Ordinary income
170 Hundreds of millions of yen
Profit attributable to owners of parent
100 Hundreds of millions of yen
Earnings per share
¥464.15
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Generally progressing as planned
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Gross profit (before funding costs)44 Hundreds of millions of yen
  • Funding costs-21 Hundreds of millions of yen
  • SG&A expenses (excluding credit-related expenses)-9 Hundreds of millions of yen
  • Credit-related expenses-7 Hundreds of millions of yen
  • Non-operating items, including investment partnerships and foreign exchange, and other items-3 Hundreds of millions of yen
  • Profit attributable to non-controlling interests-1 Hundreds of millions of yen
  • Income Taxes-2 Hundreds of millions of yen
New initiatives
  • Accelerate the accumulation of LBO mezzanine transactions
  • Create revenue opportunities through venture investments and exits
  • Structure investments in growth companies and co-investment transactions
  • Build up battery storage and structured finance transactions
  • Develop data center and overseas PPP transactions and generate revenue from them at an early stage
Key KPIsA metric the company considers important as a management benchmark.
  • Balance of operating assets12,439 Hundreds of millions of yen
    Year on year against the same period last year+21.8%
  • ROA0.74 %
  • ROE7.55 %
  • Funding cost ratio1.75 %
    Year on year against the same period last year1.14% in the same period of the previous year
  • Equity ratio9.4 %
  • Interest-bearing debt11,440 Hundreds of millions of yen
    Year on year against the same period last year+¥170.9 billion year on year
Segment results
  • Public and ICT Infrastructure
    Net Sales594 Hundreds of millions of yen
    Year-on-year change in revenue11.6
    Operating profit (loss)11 Hundreds of millions of yen
    Year-on-year change in operating income (loss)Up 120.6% year on year
  • Corporate Finance
    Net Sales37 Hundreds of millions of yen
    Year-on-year change in revenue-7.4
    Operating profit (loss)2 Hundreds of millions of yen
    Year-on-year change in operating income (loss)Down 50.9% year on year
  • Real Estate and Energy
    Net Sales29 Hundreds of millions of yen
    Year-on-year change in revenue-27.1
    Operating profit (loss)-0.3 Hundreds of millions of yen
    Year-on-year change in operating income (loss)Down from ¥300 million in the same period of the previous year
  • Global Business
    Net Sales15 Hundreds of millions of yen
    Year-on-year change in revenue52.6
    Operating profit (loss)2 Hundreds of millions of yen
    Year-on-year change in operating income (loss)Turned profitable from a loss
  • Investment
    Net Sales72 Hundreds of millions of yen
    Year-on-year change in revenue150.9
    Operating profit (loss)18 Hundreds of millions of yen
    Year-on-year change in operating income (loss)116
Medium-term management plan targets
Build up operating assets toward achieving Medium-Term Plan 2028 and raise the equity ratio above 10% by the end of March 2027
Financial targets
ROA
Actual results0.74 %
Current-period plan0.8 %
ROE
Actual results7.55 %
Current-period plan8.2 %
Equity ratio
Actual results9.4 %
TargetAbove 10% at the end of March 2027
Market Size / Share
Lease transaction volume
Year-on-year change for the overall market2.6 %
Information and Communications Equipment
Year on year against the same period last year+7.9%
Annual Dividend
Annual
¥150
Interim
¥75
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales747 Hundreds of millions of yen (YoY +14.9%)
Operating profit37 Hundreds of millions of yen (YoY +54.7%)
Ordinary income42 Hundreds of millions of yen (YoY +39.9%)
Net income23 Hundreds of millions of yen (YoY +3.4%)
Results for the three months of the current quarterNet Sales 747 Hundreds of millions of yen / Operating profit 37 Hundreds of millions of yen / Ordinary income 42 Hundreds of millions of yen / Profit attributable to owners of parent for the quarter 23 Hundreds of millions of yen
Full-year earnings forecastNet Sales 3,100 Hundreds of millions of yen / Operating profit 165 Hundreds of millions of yen / Ordinary income 170 Hundreds of millions of yen / Profit attributable to owners of parent 100 Hundreds of millions of yen / Earnings per share ¥464.15
Self-assessment against the planGenerally progressing as planned
Segment resultsSegment Public and ICT Infrastructure / Net Sales 594 Hundreds of millions of yen / Year-on-year change in revenue 11.6 / Operating profit (loss) 11 Hundreds of millions of yen / Year-on-year change in operating income (loss) Up 120.6% year on year, Segment Corporate Finance / Net Sales 37 Hundreds of millions of yen / Year-on-year change in revenue -7.4 / Operating profit (loss) 2 Hundreds of millions of yen / Year-on-year change in operating income (loss) Down 50.9% year on year, Segment Real Estate and Energy / Net Sales 29 Hundreds of millions of yen / Year-on-year change in revenue -27.1 / Operating profit (loss) -0.3 Hundreds of millions of yen / Year-on-year change in operating income (loss) Down from ¥300 million in the same period of the previous year, Segment Global Business / Net Sales 15 Hundreds of millions of yen / Year-on-year change in revenue 52.6 / Operating profit (loss) 2 Hundreds of millions of yen / Year-on-year change in operating income (loss) Turned profitable from a loss, Segment Investment / Net Sales 72 Hundreds of millions of yen / Year-on-year change in revenue 150.9 / Operating profit (loss) 18 Hundreds of millions of yen / Year-on-year change in operating income (loss) 116
Breakdown of Factors Affecting the ChangeFactors Gross profit (before funding costs) / Amount 44 Hundreds of millions of yen, Factors Funding costs / Amount -21 Hundreds of millions of yen, Factors SG&A expenses (excluding credit-related expenses) / Amount -9 Hundreds of millions of yen, Factors Credit-related expenses / Amount -7 Hundreds of millions of yen, Factors Non-operating items, including investment partnerships and foreign exchange, and other items / Amount -3 Hundreds of millions of yen, Factors Profit attributable to non-controlling interests / Amount -1 Hundreds of millions of yen, Factors Income Taxes / Amount -2 Hundreds of millions of yen
Key KPIsIndicator name Balance of operating assets / Value 12,439 Hundreds of millions of yen / Year on year against the same period last year 21.8 Hundreds of millions of yen, Indicator name ROA / Value 0.74 % / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 7.55 % / Year on year against the same period last year Not disclosed, Indicator name Funding cost ratio / Value 1.75 % / Year on year against the same period last year 1.14% in the same period of the previous year, Indicator name Equity ratio / Value 9.4 % / Year on year against the same period last year Not disclosed, Indicator name Interest-bearing debt / Value 11,440 Hundreds of millions of yen / Year on year against the same period last year +¥170.9 billion year on year
Medium-term management plan targetsBuild up operating assets toward achieving Medium-Term Plan 2028 and raise the equity ratio above 10% by the end of March 2027
Financial targetsROA Actual results 0.74 % / Current-period plan 0.8 % / ROE Actual results 7.55 % / Current-period plan 8.2 % / Equity ratio Actual results 9.4 % / Target Above 10% at the end of March 2027
Annual DividendAnnual ¥150 / Interim ¥75 / End of period Not disclosed
Market Size / ShareLease transaction volume Year-on-year change for the overall market 2.6 % / Information and Communications Equipment Year on year against the same period last year 7.9 %
New initiativesAccelerate the accumulation of LBO mezzanine transactions, Create revenue opportunities through venture investments and exits, Structure investments in growth companies and co-investment transactions, Build up battery storage and structured finance transactions, Develop data center and overseas PPP transactions and generate revenue from them at an early stage
Items this document does not state (14)
Gross profitOperating profit marginSelling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue and profit increased due to business growth centered on the Public and ICT Infrastructure Business, the realization of investment gains in the Investment Business, and the expansion of operating assets. Meanwhile, the Real Estate and Energy Business reported lower revenue and profit due to the absence of gains on real estate sales recorded in the previous year, and the equity ratio declined as a result of upfront investment.

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Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | NEC Capital Solutions Limited (8793) timely disclosure | Komori