Financial Results Presentation

Q3 FY9/2022

(October 1, 2021 - June 30, 2022)

Financial Products Group Co., Ltd.

（Prime Market of TSE, Code：7148）

Earnings Summary

Q3

(Cumulative)

As a result of stellar performances in both the Leasing Fund Business and Real Estate Fund Business, operating income, ordinary income, and net profit all exceeded the full-year forecasts announced on April 26.

  • The Leasing Fund Business's favorable performance resulted in net sales of 11.1 billion yen (+7.3%
    YoY), exceeding the previous year's full-year results. Arrangements also exceeded the initial forecast of 200 billion yen and progressed favorably.
  • The Real Estate Fund Business also performed strongly, resulting in net sales of 35.3 billion yen (+136.5% YoY), achieving the previously announced full-year forecast of 34.2 billion yen ahead of schedule.

Full Year Forecast

Year-end Dividend

Given the Q3 results, announced an upward revision for the full-year forecast on July 28.

The year-end dividend forecast was revised upward to 46.0 yen per share, an increase of 27.5 yen from the previous year.

Commenced sales of a collective investment project targeting international real estate.

Q3 Topics

Arrangement started sequentially in June for a large-scale project of 18

container vessels ordered in December 2021 as part of the "Transition Finance"

initiative to contribute to moving toward a decarbonized society.

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© 2022 Financial Products Group Co., Ltd.

Financial Highlights

◼ All four account items almost doubled YoY, clearly indicating that we are putting the COVID-19 crisis behind us.

Net sales

Appx. 1.8x

  • The Real Estate Fund Business is driving growth in addition to the Leasing Fund Business.

*Due to the application of the "Accounting Standards for Revenue Recognition," the

Real Estate Fund Business's net sales have

been reclassified using the gross amount method by way of comparison.

Ordinary income

Appx. 2.0x

  • Achieved the full-year forecast of 10 billion yen in ordinary income announced on April 26, ahead of schedule in Q3.

（Unit: JPY billion)

Operating income

47.48

Appx. 1.8x

26.21

✓ In addition to increased

revenue, appropriate

control of SG&A expenses

enabled us to achieve our

full-year forecast of 9.7

billion yen in operating

income announced on

April 26, ahead of

FY2021

FY2022

schedule in Q3.

Q3(Cumulative)*

Q3(Cumulative)

（Unit: JPY billion)

Net profit*

10.60

Appx. 2.1x

✓ Achieved the full-year net

5.43

profit forecast of 6.7

billion yen announced on

April 26, ahead of

schedule in the Q3.

FY2021

FY2022

Q3(Cumulative)

Q3(Cumulative)

（Unit: JPY billion)

9.83

5.60

FY2021FY2022 Q3(Cumulative) Q3(Cumulative)

（Unit: JPY billion)

7.22

3.42

FY2021FY2022

Q3(Cumulative) Q3(Cumulative)

* Profit attributable to owners of parent

© 2022 Financial Products Group Co., Ltd.

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Results and Revised Full-Year Forecasts

  • Given the Q3 results, the full-year results forecast was revised further upward.
    • Operating income, ordinary income, and net profit for Q3 (cumulative) all exceeded the full-year forecast announced on April 26.
    • The full-year forecasts were each revised upward from the previous forecasts to 11.0 billion yen for operating income (+13.4%), 11.5 billion yen for ordinary income (+15.0%), and 7.7 billion yen for net profit (+14.9%), respectively.
  • The dividend-per-share forecast was revised upward to 46.0 yen, up 6.0 yen from the previous forecast and up 27.5 yen from the previous year.

（Unit: JPY billion)

Q3(Cumulative)

Full Year

FY2021

FY2022

FY2021

FY2022

Current forecast

YoY

Previous forecast

Current Forecast

vs. Previous

Results *1

Results

Results *1

YoY

(as of Apr. 26)

(as of Jul. 28)

Forecast

Net sales

26.21

47.48

+81.1%

Leasing Fund Business

10.43

11.19

+7.3%

Real Estate Fund Business

14.93

35.31

+136.5%

Other Business

0.85

0.97

+14.1%

Operating income

5.60

9.83

+75.6%

Ordinary income

5.43

10.60

+95.3%

Ordinary income margin

20.7%

22.3%

+1.6%

on sales

Profit attributable to owners of

3.42

7.22

+111.3%

parent

Profit margin on sales

13.0%

15.2%

+2.2%

33.58

49.00

56.50

+68.2%

+15.3%

11.16

13.50

13.50

+21.0%

-

21.28

34.20

41.70

*2

+95.9%

+21.9%

1.14

1.30

1.30

+13.9%

-

5.23

9.70

⤴

11.00

+110.2%

+13.4%

5.14

10.00

⤴

11.50

+123.4%

+15.0%

15.3%

20.4%

20.4%

+5.0%

▲0.0%

2.94

6.70

⤴

7.70

+161.3%

+14.9%

8.8%

13.7%

13.6%

+4.9%

▲0.1%

Dividend per share (yen)

-

-

‐

18.5

⤴

40.0

⤴

46.0

+27.5yen

+6.0yen

*1

For the purpose of comparison with the current fiscal year, net sales of the Real Estate Fund Business have been reclassified using the gross amount method.

*2

Includes sales from international real estate investment projects (net amount method)

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© 2022 Financial Products Group Co., Ltd.

Leasing Fund Business Sales

  • Equity placements in high-margin projects continued to perform strongly, resulting in net sales for Q3 (cumulative) exceeding the full-year results for the previous fiscal year.
  • We will continue to promote sales in Q4, aiming to stay on track to achieve the equity placement sales plan.

T r e n d s i n S a l e s A m o u n t

(Unit：JPY billion)

Q4

Q3

Reference: Comparison of net sales

Q2

11.19

Q1

11.16

156.7

FY

Q3

143.6

FY2021

FY2022

47.1

Q3

31.7

94.8

94.5

Full year

35.7

forecast

38.5

9.1

80.0

26.6

30.4

11.5

55.6

45.8

49.8

32.9

27.9

20.9

30.2

17.7

21.1

23.7

26.9

17.0

FY2018

FY2019

FY2020

FY2021

FY2022

© 2022 Financial Products Group Co., Ltd.

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Financial Products Group 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 07:44:12 UTC.