Overview of Latest Financial Results

With regard to the consolidated business results for the fiscal year ended March 31, 2025, revenues increased ¥22,500 million, or 1.7%, to ¥1,368,600 million, and gross profit increased ¥27,000 million, or 10.7%, to ¥280,200 million, mainly due to increased income in the Specialty Financing and International Business segments.

Selling, general and administrative expenses increased ¥14,200 million, or 9.5%, to ¥163,200 million, 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 ¥15,200 million, up ¥2,100 million, or 16.3%, from the previous fiscal year, mainly due to increases in foreign exchange gains and dividend income.

Due to the factors mentioned above, ordinary income increased ¥15,000 million, or 12.8%, to ¥132,300 million from the previous fiscal year.

Extraordinary income minus extraordinary losses amounted to a net income of ¥13,100 million, up ¥12,400 million from the previous fiscal year, mainly due to gains on sale of investment securities. Income taxes increased ¥15,200 million, or 42.7%, to ¥50,600 million, and net income attributable to noncontrolling interests decreased ¥900 million, or 8.6%, to ¥9,500 million, respectively, from the previous fiscal year.

As a result, net income attributable to owners of parent increased ¥13,100 million, or 18.2%, to ¥85,300 million from the previous fiscal year.

Total assets at the end of the fiscal year under review increased ¥401,900 million, or 6.2%, to ¥6,862,900 million from the end of the previous consolidated fiscal year. Segment assets increased ¥339,400 million, or 5.9%, to ¥6,059,900 million from the end of the previous consolidated fiscal year, mainly due to foreign exchange fluctuations.

Total liabilities increased ¥236,200 million, or 4.3%, to ¥5,686,000 million from the end of the previous consolidated fiscal year. Interest-bearing debts increased ¥163,600 million, or 3.4%, to ¥4,912,600 million.

Total net assets increased ¥165,700 million, or 16.4%, to ¥1,176,900 million from the end of the previous consolidated fiscal year, mainly due to an increase in translation adjustments of ¥106,200 million and an increase in retained earnings of ¥57,900 million.

As a result, the shareholders’ equity ratio increased 1.5 percentage points compared with the end of the previous consolidated fiscal year to 15.0%.

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Revenues decreased ¥9,500 million, or 2.1%, to ¥449,100 million, and segment income decreased ¥1,300 million, or 5.5%, to ¥22,800 million, respectively, from the previous fiscal year. The decrease in segment income was mainly due to one-time losses, higher SG&A expenses, and the impact of exchange rates on NTT TC Leasing Co., Ltd. The balance of segment assets increased ¥1,400 million, or 0.1%, to ¥1,275,000 million from the end of the previous fiscal year.

Revenues decreased ¥36,400 million, or 10.8%, to ¥300,700 million, and segment income increased ¥1,000 million, or 6.2%, to ¥17,700 million, respectively, from the previous fiscal year. The increase in segment income was mainly due to an increase in gains on sale of vehicles whose leases terminated and increased profitability resulting from the rise in car rental prices per unit. The balance of segment assets increased ¥21,800 million, or 4.5%, to ¥500,800 million from the end of the previous fiscal year.

Revenues increased ¥22,300 million, or 7.2%, to ¥334,500 million, and segment income increased ¥2,900 million, or 9.7%, to ¥32,900 million, respectively, from the previous fiscal year. The increase in segment income was mainly due to the growth of real estate business, and higher gains on sales of principal investment business. The balance of segment assets increased ¥147,700 million, or 5.2%, to ¥2,972,900 million from the end of the previous fiscal year.

Revenues increased ¥45,300 million, or 25.5%, to ¥222,700 million, and segment income increased ¥5,400 million, or 48.9%, to ¥16,300 million, respectively, from the previous fiscal year, mainly due to an increase in gain on sale of investment securities and foreign exchange gains. The balance of segment assets increased ¥154,500 million, or 18.8%, to ¥977,200 million from the end of the previous fiscal year, mainly due to an increase in investments in data center businesses.

Revenues increased ¥1,200 million, or 2.0%, to ¥60,800 million, and segment income decreased ¥1,800 million, or 95.7%, to ¥100 million, respectively, from the previous fiscal year. The decrease in segment income was mainly due to a significant decrease in income from biomass co-firing power generation business, and the increased funding cost of new overseas investment projects. The balance of segment assets increased ¥11,300 million, or 4.1%, to ¥285,200 million from the end of the previous fiscal year.