Consolidated Financial Results Summary for the First Quarter ended June 30, 2020
August 5, 2020
© Hitachi Capital Corporation 2020. All rights reserved.
The highlights of Consolidated Financial Results for the First Quarter of FY2020
- Consolidated earnings forecasts for the fiscal year ending March 31, 2021 remain unchanged.
(Unchanged assumption of the COVID-19 impact calculation)
- Profit before tax: The result exceeded initial forecasts of the first quarter as a result of steady performance of Environment/Energy in Japan and cost reduction, etc.
(1Q result: ¥9 billion/Progress rate to initial forecasts of the first half(¥16.3 billion): 55%)
- Volume of business: The result exceeded initial forecasts of the first
quarter despite negative impact resulting from economic slowdown and city-wide lockdown due to the COVID-19 impact.
(1Q result: ¥353.4 billion/Progress rate to initial forecasts of the first half(¥702.7 billion): 50%)
- Selling, general and administrative expenses: Allowance for doubtful accounts temporary increased within expectation due to correspondence
to moratoriums in UK and Indonesia, etc.
(1Q result: ¥23.8 billion/Progress rate to initial forecasts of the first half(¥49.5 billion): 48%)
The Company incorporates decreases in business volume and revenues in its consolidated earnings forecasts for the fiscal year ending March 31, 2021, assuming that the COVID-19 impact will have significant negative impact until June 2020 and then the economy will gradually recover towards March 2021.
© Hitachi Capital Corporation 2020. All rights reserved. | 1 |
Profit before tax of the First Quarter of FY2020 (Year on Year)
- The result(¥9.0 billion) progressed 55% to initial forecasts of the first half (¥16.3 billion).
- The result increased 6% year on year excluding the COVID-19 impact.
(Billions of yen) | 11.4* | |||||||
(Y on Y: 106%) | ||||||||
Effect of | COVID-19 | |||||||
Business | impact | |||||||
Exchange | ||||||||
expansion, etc. | ||||||||
rate changes | COVID-19 | |||||||
(Mainly Japanese | ||||||||
▲0.2 | ||||||||
business) | impact | |||||||
10.8 | +0.8 | (Mainly global | 9.0 | |||||
▲2.4 | ||||||||
business) | ||||||||
(Y on Y: 83%) | ||||||||
FY2019/1Q | FY2020/1Q |
Result | Result |
*The result excluding the COVID-19 impact |
© Hitachi Capital Corporation 2020. All rights reserved. | 2 |
Contents
- Summary of Consolidated Financial Results for the First Quarter of FY2020
- Summary of Performance by Business
- Consolidated Financial Forecast for FY2020
© Hitachi Capital Corporation 2020. All rights reserved. | 3 |
1. Summary of Consolidated Financial Results for the First Quarter of FY2020
(Millions of yen) | ||||||
FY2019/1Q | FY2020/1Q | Y on Y | Foreign | Y on Y | ||
exchange | (excluding foreign | |||||
Results | Results | Change | ||||
effects | exchange effects) | |||||
Volume of business | 574,536 | 353,446 | 62% | ▲6,745 | 63% | |
Revenues | 114,517 | 109,758 | 96% | ▲2,092 | 98% | |
Cost of sales | 80,702 | 78,243 | 97% | ▲1,330 | 99% | |
Gross profit | 33,815 | 31,514 | 93% | ▲761 | 95% | |
Selling, general and administrative expenses | 23,634 | 23,859 | 101% | ▲595 | 103% | |
Profit before tax | 10,832 | 8,993 | 83% | ▲166 | 85% | |
Net income attributable to owners of the parent | 8,064 | 6,574 | 82% | ▲132 | 83% | |
Operating assets | 3,226,070 | 3,073,646 | 95% | ▲28,644 | 96% | |
ROE | 8.5% | 6.9% | ▲1.6% | ― | ||
ROA | 1.3% | 1.1% | ▲0.2% | ― | ||
OHR | 62.7% | 64.1% | +1.4% | ― | ||
Yearly average currency | Yen / £ | 141 yen | 134 yen | ▲8 yen | ― | |
exchange rate | Yen / US $ | 110 yen | 108 yen | ▲2 yen | ― | |
© Hitachi Capital Corporation 2020 All rights reserved. | 4 |
2-1. Summary of Japan Business/Global Business
(Millions of yen) | ||||
FY2019/1Q | FY2020/1Q | Y on Y | Foreign | Y on Y |
exchange | ||||
Results | Results | Change | (excluding foreign | |
effects | exchange effects) | |||
Volume of | Japan Business | 251,861 | 176,991 | 70% | ▲ 27 | 70% | |
business | Global Business | 322,675 | 176,454 | 55% | ▲6,717 | 57% | |
Gross profit | Japan Business | 15,235 | 15,276 | 100% | 0 | 100% | |
Global Business | 18,538 | 16,274 | 88% | ▲760 | 92% | ||
Profit before | Japan Business | 6,849 | 7,440 | 109% | 0 | 109% | |
tax | Global Business | 6,209 | 3,691 | 59% | ▲165 | 62% | |
Operating | Japan Business | 1,605,771 | 1,625,247 | 101% | ▲53 | 101% | |
assets | Global Business | 1,620,298 | 1,448,398 | 89% | ▲28,591 | 91% | |
ROA | Japan Business | 1.7% | 1.8% | +0.1% | ― | ― | |
Global Business | 1.5% | 1.0% | ▲0.5% | ― | ― | ||
ROA | |||||||
(Local currency | Global Business | 1.5% | 1.0% | ▲0.5% | ― | ― | |
basis) | |||||||
*Adjustments (company-wide expense) are not allocated to gross profit and profit before tax of Japan Business and Global Business. | |||||||
© Hitachi Capital Corporation 2020 | All rights reserved. 5 |
2-2. Breakdown of Japan Business
(Millions of yen)
Volume of business | Operating assets | |||||||||
FY2019/1Q | FY2020/1Q | Y on Y Change | FY2019/1Q | FY2020/1Q | Y on Y Change | |||||
Results | Results | Results | Results | |||||||
Total of Japan Business | 251,861 | 176,991 | 70% | 1,605,771 | 1,625,247 | 101% | ||||
Account Solution | 201,985 | 138,248 | 68% | 1,053,337 | 1,119,860 | 106% | ||||
Vendor Solution | 47,825 | 36,874 | 77% | 435,696 | 439,422 | 101% | ||||
Total of reportable segments | 249,811 | 175,122 | 70% | 1,489,034 | 1,559,283 | 105% | ||||
Other | 2,348 | 2,209 | 94% | 116,737 | 65,963 | 57% | ||||
Gross profit | Profit before tax | |||||||||
FY2019/1Q | FY2020/1Q | Y on Y Change | FY2019/1Q | FY2020/1Q | Y on Y Change | |||||
Results | Results | Results | Results | |||||||
Total of Japan Business | 15,235 | 15,276 | 100% | 6,849 | 7,440 | 109% | ||||
Account Solution | 9,109 | 9,178 | 101% | 5,266 | 5,688 | 108% | ||||
Vendor Solution | 4,057 | 4,110 | 101% | 1,501 | 1,721 | 115% | ||||
Total of reportable segments | 13,167 | 13,289 | 101% | 6,768 | 7,410 | 109% | ||||
Other | 2,067 | 1,987 | 96% | 80 | 30 | 38% | ||||
*Adjustments (company-wide expense) are not allocated to total of Japan Business | ||||||||||
© Hitachi Capital Corporation 2020 All rights reserved. | 6 |
2-3. Breakdown of Global Business(1):
Europe, The Americas
- Europe (UK, Poland, the Netherlands, Germany, Austria, Belgium, Czech, Slovakia, Hungary)
(Millions of yen) | |||||
FY2019/1Q | FY2020/1Q | Foreign | Y on Y | ||
Y on Y Change | exchange | ||||
Results | Results | (excluding foreign | |||
effects | |||||
exchange effects) | |||||
Volume of business | 164,817 | 73,757 | 45% | ▲ 4,210 | 47% |
Gross profit | 11,202 | 10,185 | 91% | ▲ 580 | 96% |
Profit before tax | 3,993 | 3,135 | 79% | ▲ 168 | 83% |
Operating assets | 841,677 | 822,937 | 98% | ▲ 24,732 | 101% |
ROA (Local currency basis) | 1.9% | 1.5% | ▲0.4% | ― | ― |
- The Americas (US, Canada)
(Millions of yen) | |||||
FY2019/1Q | FY2020/1Q | Foreign | Y on Y | ||
Y on Y Change | exchange | ||||
Results | Results | (excluding foreign | |||
effects | |||||
exchange effects) | |||||
Volume of business | 105,154 | 69,342 | 66% | ▲ 1,469 | 67% |
Gross profit | 4,202 | 3,530 | 84% | ▲ 74 | 86% |
Profit before tax | 967 | 473 | 49% | ▲ 10 | 50% |
Operating assets | 354,390 | 314,036 | 89% | ▲ 145 | 89% |
ROA (Local currency basis) | 1.0% | 0.6% | ▲0.4% | ― | ― |
© Hitachi Capital Corporation 2020 All rights reserved. | 7 |
2-3. Breakdown of Global Business(2):
China, ASEAN
- China (Mainland China, Hong Kong)
(Millions of yen) | |||||
FY2019/1Q | FY2020/1Q | Foreign | Y on Y | ||
Y on Y Change | exchange | ||||
Results | Results | (excluding foreign | |||
effects | |||||
exchange effects) | |||||
Volume of business | 24,057 | 23,687 | 98% | ▲ 598 | 101% |
Gross profit | 1,431 | 1,127 | 79% | ▲ 27 | 81% |
Profit before tax | 749 | 455 | 61% | ▲ 9 | 62% |
Operating assets | 275,534 | 185,575 | 67% | ▲ 1,057 | 68% |
ROA (Local currency basis) | 1.0% | 0.9% | ▲0.1% | ― | ― |
- ASEAN (Singapore, Thailand, Malaysia, Indonesia)
(Millions of yen) | |||||
FY2019/1Q | FY2020/1Q | Foreign | Y on Y | ||
Y on Y Change | exchange | ||||
Results | Results | (excluding foreign | |||
effects | |||||
exchange effects) | |||||
Volume of business | 28,646 | 9,667 | 34% | ▲ 439 | 35% |
Gross profit | 1,701 | 1,430 | 84% | ▲ 77 | 89% |
Profit before tax | 498 | ▲ 372 | ― | 22 | ― |
Operating assets | 148,696 | 125,849 | 85% | ▲ 2,655 | 86% |
ROA (Local currency basis) | 1.3% | ▲1.3% | ▲2.6% | ― | ― |
© Hitachi Capital Corporation 2020 All rights reserved. | 8 |
3. Consolidated Financial Forecast for FY2020 (Preliminary calculation)
(Millions of yen) | ||||||||||
FY2019 | FY2020 | Y on Y Change | ||||||||
Results | Forecasts | |||||||||
Volume of business | 2,186,490 | 1,755,000 | 80% | |||||||
Revenues | 464,020 | 450,200 | 97% | |||||||
Cost of sales | 327,703 | 314,200 | 96% | |||||||
(of which, cost of capital) | 40,027 | 36,900 | 92% | |||||||
Gross profit | 136,316 | 136,000 | 100% | |||||||
Selling, general and administrative expenses | 96,442 | 99,500 | 103% | |||||||
Profit before tax | 42,526 | 38,500 | 91% | |||||||
Net income attributable to owners of the parent | 30,693 | 27,500 | 90% | |||||||
Dividend per share (yen) | 150 yen(*1) | 94 yen | ― | |||||||
Payout ratio | 41.9%(*2) | 39.9% | ▲2.0% | |||||||
ROE | 8.1% | 7.1% | ▲1.0% | |||||||
ROA | 1.3% | 1.2% | ▲0.1% | |||||||
OHR | 61.9% | 65.7% | +3.7% | |||||||
Yearly average | Yen / £ | 138 yen | 135 yen | Exchange sensitivity (*3) | ||||||
: Approx. 110 million yen | ||||||||||
currency exchange rate | Yen / US $ | 109 yen | 108 yen | : Approx. 30 million yen | ||||||
Exchange sensitivity (*3) | ||||||||||
(*1) Ordinary dividend payments 110 yen + Special Dividends 40 yen (*2) Calculated using ordinary dividend payments (110 yen share)
(*3) The impact on Profit before tax in case JPY vs £/$ changed 1 yen (FY2020 forecasts )
© Hitachi Capital Corporation 2020 All rights reserved. | 9 |
https://www.hitachi-capital.co.jp/
Note:
This document contains forward‐looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management's views and assumptions formed using information available at the time. Accordingly, forecasts may differ from actual results due to a variety of factors.
Appendix
© Hitachi Capital Corporation 2020. All rights reserved.
Breakdown of Cost of Sales/SG&A
■ Breakdown of cost of sales | (Millions of yen) | |||||
FY2019/1Q | FY2020/1Q | Y on Y Change | ||||
Results | Results | |||||
Cost of sales | 80,702 | 78,243 | 97% | |||
(of which, cost of capital) | 10,595 | 8,592 | 81% | |||
■ Breakdown of SG&A | (Millions of yen) | |||||
FY2019/1Q | FY2020/1Q | Y on Y Change | ||||
Results | Results | |||||
Selling, general and administrative | 23,634 | 23,859 | 101% | |||
expenses | ||||||
(of which, personnel costs) | 12,572 | 12,288 | 98% | |||
(of which, business management | 8,632 | 7,916 | 92% | |||
expenses, etc.) | ||||||
(of which, bad debt-related | 2,430 | 3,654 | 150% | |||
expenses) | ||||||
© Hitachi Capital Corporation 2020 | All rights reserved. 12 |
Quarterly Credit Trends by Region
Credit loss ratio | |||||
Annually Accumulated | 1Q | ||||
Accumulated | |||||
FY2017 | FY2018 | FY2019 | FY2020/1Q | ||
Results | Results | Results | Results | ||
Total | 0.20% | 0.18% | 0.23% | 0.29% | |
Japan | 0.05% | 0.06% | 0.07% | 0.06% | |
Europe | 0.22% | 0.25% | 0.30% | 0.45% | |
The | 0.79% | 0.49% | 0.79% | 0.90% | |
Americas | |||||
Asia | 0.28% | 0.22% | 0.33% | 0.49% | |
Credit loss(Millions of yen)
Annually Accumulated | 1Q | ||
Accumulated | |||
FY2017 | FY2018 | FY2019 | FY2020/1Q |
Results | Results | Results | Results |
6,452 | 6,156 | 7,383 | 2,244 |
812 | 911 | 1,160 | 233 |
1,705 | 2,169 | 2,655 | 920 |
2,652 | 2,070 | 2,480 | 709 |
1,281 | 1,005 | 1,087 | 381 |
*Credit loss ratio : Credit loss ÷ Operating assets
*Credit loss : This is the actual amount of bad debt losses that are different from bad debt-related expenses and the allowance for bad debt.
© Hitachi Capital Corporation 2020 All rights reserved. | 13 |
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Hitachi Capital Corporation published this content on 05 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2020 04:46:06 UTC