Message from the President

Domestic lease transaction volume (on a calendar year basis) has been below the previous year’s level for three consecutive years^* since 2020, mainly due to a decline in capital investment during the COVID-19 pandemic. On the other hand, demand for services is expected to recover as economic activities normalize, and capital investment is expected to rise over the medium to long term in fields such as decarbonization and digital technologies. We therefore expect leasing demand to reverse and recover in the future.

Under these circumstances, we have accelerated our value boost strategy in our core leasing business to expand co-creative businesses with prime partners and to increase the value of our solution and service functions by mobilizing the resources of Group companies so that we can continue responding to diversifying customer needs.

With Group integrated management as the pillar of our strategy, we are focusing on providing highly competitive solutions that can firmly support customer business strategies by expanding co-creative businesses centered on joint ventures with prime partners such as Nippon Telegraph and Telephone Corporation (NTT), ITOCHU Corporation, and the NX Group.

Also, acknowledging a growing willingness to invest in sustainable business themes, such as toward the achievement of the SDGs and carbon neutrality and implementation of digital transformation strategies, we will focus on increasing renewable energy projects, advancing into next-generation energy businesses, and creating SaaS businesses in the ICT field, which is our specialty.

In addition, the growth of our business is driven by the contributions of our highly motivated and diverse human resources. We are therefore committed to creating a workplace environment where employees can experience job satisfaction and personal growth and to improving work engagement in order to develop human resources and improve our organizational capabilities to meet customer needs.

Under the Medium-Term Management Plan 2027, which started in fiscal 2023, our basic strategy is to further expand our initiatives and aggressively invest in business transformation and growth areas to achieve sustainable growth. We will designate growth markets and areas with high potential for collaboration with prime partners as strategic growth areas in which to pursue a strategy of concentrating resources.

As a preliminary move, in fiscal 2022 Tokyo Century and ITOCHU Corporation jointly set an investment facility of €20 million for Clean H2 Infra Fund S.L.P. of France, the world’s first large-scale clean hydrogen infrastructure investment fund. Leading international companies will also participate in this fund, which will primarily invest in clean hydrogen production projects and hydrogen stations that are expected to be commercialized in the near future. Tokyo Century will utilize the expertise in the hydrogen business gained through this investment to collaborate with ITOCHU in order to enhance diverse financial services that will encourage the widespread use of clean energy.

In addition, as a new initiative for achieving the SDGs, we worked with the Kyocera Group to begin offering a donation-based corporate power purchase agreement (private power generation support service). This service is a conventional power purchase agreement and an initiative for donating at our expense to public interest incorporated associations and NPOs designated by our customers. Moreover, we will further strengthen our efforts to refurbish end-of-lease assets, particularly PCs and other IT assets, to help create a decarbonized society and an environmentally sound, sustainable economy and society.