Highlights

In cooperation with the wholly owned ITOCHU subsidiary Belong Inc., Tokyo Century operates Belong One, a service for corporate users requiring rental of secondhand smartphones and tablets.

Belong One was launched in response to growing demand from corporations for these devices.

The service increases the reuse of smartphones and tablets, as they can be maintained and reused after the end of their rental service life.

As a result, this initiative contributes to the realization of circular economies.

We are working with OMRON Social Solutions Co., Ltd. (OSS) to offer the POWER CONTINUE flat-rate power conditioner^* rental service for low-voltage solar power plants.

OSS handles equipment replacement and maintenance, while Tokyo Century provides related financial services and the TCplats subscription integration platform. The service improves power generator output at zero initial cost and eliminates the burden of unexpected costs such as repair and replacement of power conditioners.

In cooperation with KYOCERA Communication Systems Co., Ltd. (KCCS), Tokyo Century provides private power generation support service for corporate customers.

This is a third-party service that assists corporations with introducing solar power generation systems. Tokyo Century and KCCS bear the initial investment required to install the systems as well as the labor and costs of maintenance and management. Tokyo Century handles installment of the Kyocera solar power generation system, and KCCS takes care of operation and maintenance.

The service reduces the risk of increased electricity prices during the contract period. What’s more, combined with storage batteries, the system ensures that only the minimum amount of electricity needed is used for business operations in the event of a power outage or disaster, and in that way creates a working environment where employees can work with peace of mind.

We are promoting a collaborative project with our TCplats subscription platform and the DX-Core building operating system developed by Shimizu Corporation.

DX-Core is a core technology for developing advanced building operations linking equipment and service apps such as air conditioning, lighting, cameras, access control equipment, elevators, automatic doors, robots, and digital signage in buildings, regardless of manufacturer, and it will serve as a hub to interconnect each unit of equipment and app. In collaboration with Bplats, Inc., an equity-method affiliate, Tokyo Century is collaborating with Shimizu Corporation to promote DX in building operations while using TCplats, which enables billing, invoicing, and transaction management on the platform for DX-Core.

In 2020, we entered into a capital and business alliance with NTT and in the same year collaborated to carve out the leasing and global business of NTT Finance Corporation, a core financial company in the NTT Group, and establish NTT TC Leasing Co., Ltd. (We invested 50% in the company.)

NTT TC Leasing is steadily increasing its earnings, mainly through leasing and financing for domestic companies and co-creative businesses with Tokyo Century's operating segments. It can also offer highly competitive proposals reflecting the creditworthiness of the NTT Group with strength in low-cost financing.

In 2022, we formed a capital and business alliances with Fukuoka Financial Group (FFG) for the leasing business and made The Eighteenth Lease Co., Ltd., a member of FFG, an equity-method affiliate (in which we hold a 25% stake). The goal was to further expand the leasing business of The Eighteenth Lease, which changed its name to FFG Lease Co., Ltd. in April 2022, marking its new role as a strategic subsidiary of FFG.

Tokyo Century collaborates with FFG under an alliance to provide a variety of financing options, including leasing, to the customers of The Bank of Fukuoka, The Kumamoto Bank, and The Juhachi-Shinwa Bank, all of which operate under FFG. We will generate synergies combining FFG's robust customer base with our expertise in a variety of financial services, including leasing, to meet the diverse needs of our customers and contribute to the sustainable development of local communities.

Tokyo Century and Fujitsu Limited have built a new cooperative structure, with FLCS Co., Ltd. (currently 80% owned by Tokyo Century) as the base invested by both companies to contribute to customer business transformation and growth in digital fields, mainly in DX and modernization.

FLCS strongly supports customer DX through various services along with diverse payment options such as subscription and pay-as-you-go by leveraging the human resources and platforms of Tokyo Century and Fujitsu.

In 2020, we formed a capital and business alliance with GO Inc. (formerly Mobility Technologies Co., Ltd.), a taxi app and related business operator, to develop new mobility services with an eye toward MaaS, automated driving, smart cities, and other advanced fields.

As a partner contributing to GO’s business operations and growth, we are responsible for the leasing and asset management of facilities and equipment. In addition, we are exploring further opportunities to leverage the strengths of the two companies for collaboration in the mobility field.

Since 2022, we have introduced DRIVE CHART, a next-generation AI-powered drive recording service provided by GO Drive Inc., a GO Group company, to customers of Nippon Car Solutions Co., Ltd. This service automatically detects dangerous situations that are likely to lead to traffic accidents by analyzing various data obtained from dedicated in-vehicle devices equipped with drive recorders. Combining AI and IoT, the service is expected to reduce traffic accidents.

In 2021, we formed a business tie-up with ZENRIN Co., Ltd., a provider of map solutions. By combining the resources of both companies, we can deliver such value as visualizing and optimizing mobility as well as supporting the safety and security of mobility to contribute to resolving social issues and achieving stable and sustainable economic growth.

In 2022, we collaborated with Nippon Rent-A-Car Service, Inc. and ZENRIN to launch a tourism-oriented MaaS demonstration in the city of Nagasaki. ZENRIN’s smartphone app enables tourists to rent cars under a special plan. In addition to providing local information, it also allows users to purchase tickets for public transportation and tourist sites, exchange awarded points for products, and manage travel history. Combined with car rentals, this will improve the convenience of traveling to sightseeing spots in suburban areas and encourage more excursions.

Outside of this project, we will continue to discuss with ZENRIN the commercialization of safe and secure mobility services and other ways to help revitalize local communities nationwide.

Nippon Car Solutions Co., Ltd. (NCS), in its auto leasing business for corporate customers, has been promoting the introduction of EVs, mainly to the NTT Group.

Even before EVs attracted attention for their low environmental impact, NCS actively proposed the use of EVs as an emergency power source during times of disaster. Even now, NCS still handles the highest number of vehicles in the industry.

The company leverages its buying power for manufacturers and its strengths in total solutions, such as communication-type drive recorders and safe driving consulting to support the NTT Group, which intends to convert 100% of its company vehicles to EVs by fiscal 2030 under its EV100 initiative^*.

In addition, NCS works with NTT Group companies to propose EV packages to approximately 800 municipalities that have declared their commitment to carbon neutral. It cooperates with one of NTT’s close partners, a telecommunications construction company, to manage the installation and maintenance of charging facilities associated with the introduction of EVs. Furthermore, it will supply electricity derived from renewable energy sources in cooperation with NTT Group companies to help local governments achieve carbon neutrality.

In 2022, we formed a business alliance with Yanekara Inc., which is in the energy management business. It offers next-generation smart chargers and dischargers for EVs and platforms that use EVs to stabilize the balance of electricity supply and demand.

Yanekara’s next-generation charging and discharging devices not only can store electricity from rooftop solar panels to EVs but also can supply the electricity stored in those vehicles to buildings and other structures. Also, the company provides charge and discharge management systems that remotely control electricity stored in multiple EVs, and it is focusing on efforts to utilize the electricity storage capacity of EVs to balance electricity supply and demand.

By combining the Group’s mobility services, such as EV leasing, with Yanekara’s innovative technologies, such as the EV charge and discharge management system, we will accelerate the widespread use of EVs and the use of renewable energy as a main power source.

In fiscal 2021, Tokyo Century concluded a capital and business alliance with MIRAI-LABO Co., Ltd., which develops businesses in the field of EV battery diagnosis, evaluation, and reuse, in order to further accelerate the Group’s EV leasing and rental business.

MIRAI-LABO boasts proprietary technology that evaluates EV battery deterioration on a module-by-module basis. It is also working to increase the value of batteries that can no longer be used in EVs by repurposing them into stationary storage batteries and autonomous street lights, depending on the level of deterioration.

We intend to improve the competitiveness of our EV leases by developing with MIRAI-LABO an effective use model of batteries based on diagnostic evaluations. We will also work with MIRAI-LABO, a GX platform advocate, and its partners to bolster and supply environmentally sound mobility services related to the reuse, repurpose, and recycling of EV batteries.

Nippon Car Solutions Co., Ltd. is implementing a new approach to gain maximum value from EVs by providing them to Nippon Rent-A-Car Service, Inc. to be used as Kyushu Electric Power business vehicles on weekdays and as rental cars for general customers at Nippon Rent-A-Car’s Yakuin-Ekimae Office in Fukuoka City on weekends and holidays. In addition to introducing EVs for business, this strategy also provides rental cars to the general public, thereby expanding the use of EVs and contributing to the sharing economy.

In Kyushu, where there are many solar power plants, demand is expected to increase for storage batteries for the more effective use of renewable energy. As EVs become widespread, the use of their batteries for storage could emerge as a viable option. That is why we are also exploring the effective use of renewable energy by combining our mega solar power plant in Kyushu with the storage battery function of EVs.

Nippon Rent-A-Car Service, Inc. has been improving customer convenience and achieving operational efficiency through DX initiatives, including the release of a smartphone app for individual members and the revamping of its reservation website.

The app enables customers to complete making and changing reservations and also the confirmation of insurance coverage and other important information about rental care use in advance, which was previously handled at the store on the day of use. This allows for faster handover of rental cars and also better quality service from store staff.

In some locations, the company now provides even greater convenience through its “self-rental car” service, so customers can use the smartphone app to rent and return^* a car without any direct interaction with staff.

In 2022, we opened Hotel Indigo Karuizawa as a new lifestyle boutique hotel that reflects the story of Karuizawa. This is our second project in collaboration with InterContinental Hotels Group PLC, following the resort development project ANA InterContinental Beppu Resort & Spa.

Hotel Indigo Karuizawa is the first hotel owned and operated by the Tokyo Century Group, and local timber (Nagano-grown karamatsu pine) was used for its exterior and interior construction. The unique characteristics of its surroundings are also reflected in its meals and services so that it remains close to the local community while helping to reduce CO₂ emissions and revitalize the region.

Tokyo Century is a member of the Tokyo Cross Park Vision project in the Uchisaiwaicho 1-chome district of Chiyoda-ku, Tokyo.

This project is one of the largest development initiatives in central Tokyo, with a total floor area of approximately 1.1 million square meters, and is the creation of ten local companies, including related right holders and parent companies. It consists of three districts, North, Central, and South, which will be connected to the 16-hectare Hibiya Park, and there will be offices, commercial facilities, a hotel, and residential areas. Tokyo Century is promoting this project as the operator of the South District, where the South Tower, scheduled for completion in 2028, will include offices, a hotel, and wellness facilities.

Together with Mitsubishi Estate Co., Ltd., Tokyo Century acquired a hotel and hall, which will be built as part of the TOKYO TORCH project in the Tokiwabashi area adjacent to Tokyo Station. Construction is scheduled for completion in fiscal 2027.

The super luxury hotel (about 100 rooms) will be developed as the core component of new urban tourism, a key role of TOKYO TORCH. Standing over 300 meters high, with the green Sky Hill on the lobby floor, the hotel will offer a one-of-a-kind experience with breathtaking views. And the large hall (about 2,000 seats) will function as the center of an urban MICE network and contribute to cultural enrichment through live entertainment.

Tokyo Century tapped into a data center business in the United States, jointly with Mitsubishi Estate Co., Ltd. The U.S.-based investment management company TA Realty, acquired by Mitsubishi Estate in 2015, is developing a data center campus project in northern Virginia. TA Realty has formed a separate account in the project, jointly invested by Tokyo Century and Mitsubishi Estate.

The project is the most extensive scale of developing a data center campus in northern Virginia, one of the world’s largest data center markets. With its robust backup infrastructure and high reliability, the data center will be constructed to meet the needs of large enterprises such as cloud service providers known as hyperscalers. Clean energy measures for reducing the environmental burden will also be provided going forward.

We invested in PowerX, Inc. , a developer and manufacturer of electric carriers, which are attracting attention for further promoting and expanding offshore wind power generation. PowerX also manufactures and sells batteries for quick EV chargers equipped with storage batteries.

With offshore wind power generation drawing attention as a renewable energy resource in Japan, the actual operation of electric carriers developed and manufactured by PowerX are now highly anticipated for promoting and expanding the use of offshore wind power generation. This investment will provide opportunities to help promote the storage batteries planned by PowerX and offer financing for the electric carrier business. Also, this will enable us to help create a decarbonized society. Looking ahead, we will pursue business synergies with PowerX, which envisions a storage battery platform and electric carrier businesses, and strive to create an environmentally sound, sustainable economy and society.

In 2021, as the first co-investment with the Advantage Partners (AP) Group, Tokyo Century, AP, and Euglena Co., Ltd. jointly acquired all shares of Q’sai Co., Ltd., a long-established company that sells health foods and cosmetics. In May of 2021, Q’sai became a consolidated subsidiary of Euglena.

Q’sai plans to expand its product lineup and strengthen its branding by utilizing the management improvement and PMI^* know-how possessed by AP and other shareholders. It also intends to expand its pre-senior customer base applying Euglena’s digital marketing knowledge.

Tokyo Century is working closely with Euglena and AP Fund to further grow Q’sai’s business and realize a company that supports healthy aging.

As the second co-investment with Advantage Partners (AP), Tokyo Century acquired the energy storage devices and systems business of Showa Denko Materials Co., Ltd., which commenced operations as a new company, Energywith Co., Ltd., in 2021.

Tokyo Century regards this project as a joint investment conducted as part of its strategic alliance with AP and considers it a vehicle for synergies with existing businesses. Storage battery technologies and products are imperative for a number of Tokyo Century’s businesses, including its auto, renewable energy, and data center businesses. This joint investment will therefore enable us to provide high-value-added financial services related to electricity storage.

We are also actively supporting Energywith in its sales activities through introductions to our business units and partners, as well as by launching new businesses to become an energy storage solution provider.

In this way we will capitalize on the joint investment as an opportunity to contribute to the development of social infrastructure and to the creation of an environmentally sound, sustainable economy and society.

In January 2022, Aviation Capital Group LLC (ACG) placed an order with Airbus SE for 60 next-generation, narrow-body aircraft (20 A220s and 40 A320neo Family aircraft ) in preparation for medium- to long-term growth in demand for aircraft after 2024 and in anticipation of the end of the COVID-19 pandemic.

The A220 is in the 100 to 150-seat aircraft category that can reduce fuel consumption by 25% compared to the previous generation. With its excellent operating costs and capability to take off from short runways, the A220 is viewed as an option for expanding route networks beyond major hubs to include regional airports. The A320neo is a popular, state-of-the-art aircraft that is already in operation around the world. It can reduce fuel consumption by 20% compared to the previous generation and has been recognized as an aircraft that will drive the market’s future expansion.

Demand for narrow-body aircraft is expected to rise along with the growth of LCCs and an increase in short- and medium-haul routes. This order will strengthen ACG’s foundation and promote the replacement of next-generation aircraft with high fuel efficiency to meet customer demand, and in turn further advance the airline industry and contribute to reducing CO₂ emissions.

CSI Leasing, Inc. (CSI) is a leading leasing company that provides services in more than 50 countries around the world and has strengths in IT lifecycle management, combining, for example, FMV leasing of IT equipment^*1 and ITAD service^*2. In 2016, CSI became a consolidated subsidiary of the Tokyo Century Group.

While continuing steady growth based on consulting sales to be responsive to customer needs, the company has recently been establishing offices in Scandinavia, Japan, and other Asian countries to further expand its global network, with plans to enter Southeast Asia and other regions. CSI will accelerate the Group’s collaborative synergies to strengthen its revenue base by meeting the needs of multinational companies and partnering with overseas subsidiaries.

CSI Leasing (CSI)’s wholly owned subsidiary EPC, Inc. (EPC) offers ITAD services, including data erasing and disposal for IT equipment. With a network of 20 offices in eight countries (as of September 30, 2022), EPC is able to provide high-quality, global-standard services worldwide.

The introduction of IT equipment has driven growing demand for ITAD services, especially among global companies that place a high priority on governance and compliance. Furthermore, demand for ITAD services is expected to significantly rise due to the spread of remote work and increase in the number of devices associated with the advancement of 5G and IoT.

CSI LifeCycle Leasing GmbH (CSI Germany) acquired all shares of a local ITAD service company in 2022 to cater to the needs of multinational companies seeking international-standard ITAD services while also properly reusing and recycling IT equipment around the world. CSI will continue to bolster its network, expand alliances with partners, and provide high-quality ITAD services in an ever-broader range of regions.

In 2021, Tokyo Century (USA) Inc. (TCUSA) acquired all shares of Work Truck Direct, Inc. (WTD) and Fiber Marketing International, Inc. (FMI), dealers of trucks, arbor equipment, and small construction equipment in the United States, and made the two companies wholly owned subsidiaries. In 2022, the two companies merged and are currently operating on the U.S. West Coast as a new FMI.

TCUSA had already made AP Equipment Financing (API) a wholly owned subsidiary, which handles leasing and financing and whose main products are small- and medium-sized trucks and arbor equipment. The company’s business has been positioned as a growth driver in North America.

With wholly owned WTD and FMI, TCUSA has a one-stop service structure for sales and after-sales services in addition to the leasing and financing services it has been providing through API.

Tokyo Century is jointly operating data centers in India with NTT Global Data Centers Corporation (NTT GDC) of the NTT Group. In 2022, construction of the Mumbai 8 Data Center was completed and operations started.

In India, data usage is expected to increase rapidly against the backdrop of government-led digitization measures, including the expansion of smartphones and the use of video content. As a result, demand for data centers is rising. NTT GDC and Tokyo Century have therefore decided to expand their operations to the Navi Mumbai area, east of Mumbai, and construction is progressing in stages.

Kyocera TCL Solar LLC, a joint venture with Kyocera Corporation, is promoting a variety of initiatives in the environment and energy fields to develop a decarbonized society, including the sale of solar power generated electricity.

Tokyo Century established Kyocera TCL Solar in 2012 to own and operate mega solar power plants throughout Japan. We are also working to expand our solar power generation business by focusing on corporate power purchase agreements^* in conjunction with our water-based solar power generation and real estate businesses.

We are broadening our collaboration with NTT Anode Energy Corporation by jointly operating a large solar power plant and establishing an investment fund.

NTT Anode Energy is developing a smart energy business that leverages NTT Group technologies and assets to develop a decarbonized society and promote local energy production and consumption.

In 2020, the possibility of collaboration was considered, including joint development of an environmental and energy asset venture. That same year, we partnered in operating Energy Gate LLC, a solar power generation company.

In 2021, we jointly established a fund^* for establishing a 100 billion yen portfolio for investing in renewable energy projects in Japan. For our expanding pipeline, we are currently focused on secondary projects for large solar power plants.

Nippon Koei Energy Europe B.V., headquartered in the Netherlands and a wholly owned subsidiary of Nippon Koei Co., Ltd., has invested in a 100 MW grid electricity storage project in Tollgate and Cuxton in South East England.

This is the first electricity storage project for the power grid, with funding and financing provided by five Japanese companies, including Tokyo Century. The energy storage system manufactured by Toshiba Mitsubishi-Electric Industrial Systems Corporation and the control equipment manufactured by Nippon Koei will be used to connect to the power transmission and distribution system operated by National Grid plc , a leading power transmission company in the United Kingdom, to provide power grid stabilization services to grid operators. The project is scheduled to start commercial operations by the end of 2023.

The JCM has been established and implemented to quantitatively assess Japan’s contribution to the reduction and absorption of GHG emissions by diffusing excellent decarbonization technologies, products, systems, services, and infrastructure as well as by implementing other measures in developing countries, and it uses the assessment results to achieve Japan's reduction targets.

Tokyo Century is the first Japanese financial services company to serve as a representative participant of the JCM. We have partnered with local joint ventures in Southeast Asian countries to develop large-scale solar power generation projects with decarbonization technologies. From fiscal 2017 to 2022, a total of 13 projects were implemented in Indonesia, the Philippines, Thailand, and Myanmar.

Tokyo Century and JFE Engineering Corporation invest in startups that have innovative technologies through J&TC Frontier, a joint investment vehicle established in 2019. We are working to address various social issues, such as environmental problems, Japan's reduced investment in social infrastructure, and the need to improve productivity in response to work style reform and a declining population.

In 2022, Tokyo Century and JFE Engineering established SecondSight Inc., a 50-50 joint venture that develops and provides diagnostic solutions that combine the cutting-edge technologies of startups.

The two companies view the establishment of SecondSight as a new phase of collaboration that combines the startups' component technologies developed through J&TC Frontier into solutions as a one-stop service for customers. We intend to serve as a bridge that provides customers and society on the whole with these cutting-edge technologies, and a platform offering growth opportunities to startups, thereby contributing to the development of Japanese industry.