Overview of Latest Financial Results

During the three months ended June 30, 2024, revenues increased ¥5,300 million, or 1.6%, to ¥334,300 million, and gross profit increased ¥7,900 million, or 12.3%, to ¥72,100 million, respectively, from the same period of the previous fiscal year, mainly due to an increase in income in the Specialty Financing segment.

Selling, general and administrative expenses increased ¥1,700 million, or 4.8%, to ¥37,700 million from the same period of the previous fiscal year, mainly due to increases in personnel and non-personnel expenses in the International Business segment.

Non-operating income minus non-operating expenses amounted to a net income of ¥3,700 million, up ¥200 million, or 5.9%, from the same period of the previous fiscal year. This was mainly caused by an increase in equity in earnings of affiliates.

Due to the factors mentioned above, ordinary income increased ¥6,400 million, or 20.2%, to ¥38,200 million from the same period of the previous fiscal year.

Extraordinary income minus extraordinary losses amounted to losses of ¥100 million, down ¥600 million from the same period of the previous fiscal year, mainly due to a decrease in gain on sale of investment securities. Income taxes increased ¥1,100 million, or 10.3%, to ¥11,500 million from the same period of the previous fiscal year. Net income attributable to non-controlling interests amounted to ¥3,600 million.

As a result, net income attributable to owners of parent increased ¥4,800 million, or 26.3%, to ¥23,000 million from the same period of the previous fiscal year.

Total assets at the end of the first quarter of the fiscal year ending March 31, 2025 increased ¥224,200 million, or 3.5%, to ¥6,685,200 million, and segment assets increased ¥220,800 million, or 3.9%, to ¥5,941,200 million, respectively, from the end of the previous fiscal year. Total liabilities increased ¥149,100 million, or 2.7%, to ¥5,598,800 million, and interest-bearing debts increased ¥197,200 million, or 4.2%, to ¥4,946,200 million, respectively, from the end of the previous fiscal year.

Total net assets increased ¥75,200 million, or 7.4%, to ¥1,086,300 million from the end of the previous fiscal year. This was mainly caused by a ¥9,800 million increase in retained earnings and a ¥57,000 million increase in translation adjustments.

As a result, the shareholders’ equity ratio increased by 0.6 percentage points compared with the end of the previous fiscal year to 14.1%.

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Revenues decreased ¥5,000 million, or 4.2%, to ¥113,700 million, and segment income decreased ¥400 million, or 6.8%, to ¥6,100 million, respectively, from the same period of the previous fiscal year. The decrease in segment income was mainly because of the absence of one-time gains recorded for the same period of the previous fiscal year and an increase in SG&A expenses. The balance of segment assets decreased ¥25,800 million, or 2.0%, to ¥1,247,700 million from the end of the previous fiscal year.

Revenues decreased ¥18,100 million, or 18.6%, to ¥79,400 million, and segment income increased ¥500 million, or 8.2%, to ¥6,000 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly because of increased profitability resulting from the rise in car rental prices per unit. The balance of segment assets decreased ¥1,300 million, or 0.3%, to ¥477,700 million from the end of the previous fiscal year.

Revenues increased ¥18,600 million, or 31.6%, to ¥77,600 million, and segment income increased ¥7,600 million, or 205.4%, to ¥11,300 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly due to increases in operating lease revenues and gains on sale of aircraft supported by the market recovery in the aviation business. The balance of segment assets increased ¥165,400 million, or 5.9%, to ¥2,990,700 million from the end of the previous fiscal year mainly caused by foreign exchange fluctuations.

Revenues increased ¥10,800 million, or 29.0%, to ¥48,000 million, and segment income decreased ¥400 million, or 16.1%, to ¥2,100 million, respectively, from the same period of the previous fiscal year. The decrease in segment income was mainly because of an increase in SG&A expenses. The balance of segment assets increased ¥74,600 million, or 9.1%, to ¥897,300 million from the end of the previous fiscal year mainly caused by foreign exchange fluctuations.

Revenues decreased ¥1,100 million, or 6.5%, to ¥15,300 million, and segment income decreased ¥2,100 million, or 88.6%, to ¥300 million, respectively, from the same period of the previous fiscal year. The decrease in segment income was mainly due to the absence of one-time gains in the electric power generation business recorded for the same period of the previous fiscal year, the increased funding cost of new overseas investment projects, and decreased revenues resulting from the curtailment of output at solar power plants. The balance of segment assets increased ¥11,600 million, or 4.2%, to ¥285,500 million from the end of the previous fiscal year.