Results of Operations and Financial Conditions

With regard to the consolidated business results for the fiscal year ended March 31, 2024, revenues increased ¥21,200 million, or 1.6%, to ¥1,346,100 million, and gross profit increased ¥27,700 million, or 12.3%, to ¥253,200 million, respectively, from the previous consolidated fiscal year. The increase in gross profit is mainly due to increases in the International Business segment and Automobility segment.

Selling, general and administrative expenses increased ¥14,700 million, or 10.9%, to ¥149,000 million from the previous consolidated fiscal year, mainly due to increases in personnel and non-personnel expenses in the International Business segment.

Non-operating income and expenses decreased ¥1,900 million, or 12.7%, to an income of ¥13,100 million from the previous consolidated fiscal year. This was mainly attributable to an increase in interest expense, and a decrease in dividend income.

Due to the factors mentioned above, ordinary income increased ¥11,100 million, or 10.5%, to ¥117,300 million from the previous consolidated fiscal year.

Extraordinary income was ¥700 million. Income taxes increased ¥14,400 million, or 68.2%, to ¥35,500 million and net income attributable to non-controlling interests increased ¥600 million or 6.6%, to ¥10,400 million, respectively, from the previous consolidated fiscal year.

As a result, net income attributable to owners of parent increased ¥67,400 million, to ¥72,100 million from the previous consolidated fiscal year.

Total assets at the end of the fiscal year under review increased ¥378,800 million, or 6.2%, to ¥6,460,900 million, and segment assets increased ¥356,700 million, or 6.6%, to ¥5,720,400 million, respectively, from the end of the previous consolidated fiscal year, mainly due to increases in the Specialty segment and International Business segment. Total liabilities increased ¥256,600 million, or 4.9%, to ¥5,449,800 million and interest-bearing debts increased ¥234,300 million, or 5.2%, to ¥4,749,000 million, respectively, from the end of the previous consolidated fiscal year.

Total net assets increased ¥122,200 million, or 13.7%, to ¥1,011,200 million from the end of the previous consolidated fiscal year, mainly due to increases in retained earnings of ¥50,700 million, and translation adjustments of ¥39,900 million.

As a result, the shareholders’ equity ratio increased 1.0 percentage point compared with the end of the previous consolidated fiscal year to 13.5%.

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Initiatives to Strengthen the Sales Base

Equipment Leasing

Fukuoka Financial Group, Inc. (“FFG”) and the Company agreed to make FFG Lease Co., Ltd. (“FFG Lease”), a consolidated subsidiary of FFG, into an equity-method affiliate of both parties. The stakes of both parties were strategically changed through a capital increase of FFG Lease through third-party allotment underwritten by the Company. We will offer various financing methods to customers in the Kyushu region and contribute to the sustainable revitalization and development of the regional economy.

TRY Corporation (“TRY”), a consolidated subsidiary of the Company, changed its name to EPC Japan, K.K., and added IT asset disposition (“ITAD”) services to its lineup. This was made possible by having CSI Leasing, Inc. (“CSI”), also a consolidated subsidiary of the Company that leases IT equipment and provides ITAD services in the United States, take a 20% stake in TRY. ITAD services are used to rigorously and appropriately dispose of IT assets and are positioned as an essential aspect of business operations for companies that place high priority on governance and compliance. CSI provides ITAD services at more than 20 locations around the world, through its group company, EPC, Inc. (“EPC”). We will utilize EPC’s expertise to provide high-quality, world-class ITAD services in Japan.


NIPPON Rent-A-Car Service, Inc., a consolidated subsidiary of the Company which operates the car rental business, marked record high income as a result of a significant improvement in profitability due to streamlined operations, and an increase in gains on sale of vehicles. As specific measures, we are promoting plans to enhance locations, to relocate existing branch offices to better locations and also renovate them for approximately 200 locations in total, a third of all locations by 2025. We will also implement measures to earn income as well as measures to streamline operations through strengthening consumer channels and improving operational efficiency at each location, as we strive to achieve a further increase in revenues.

To promote the actual use of autonomous driving services in society, the Company invested in May Mobility, Inc. (“May Mobility”) and T2 Inc. (“T2”). May Mobility develops autonomous vehicle (AV) technology, with the goal of deploying and disseminating AVs across North America and Japan. As a technology company with considerable experience and a strong reputation in autonomous driving, May Mobility has attracted investments from many Japan-based companies, including Nippon Telegraph and Telephone Corporation (NTT), the lead investor. T2 addresses the social issue of truck driver shortages by introducing trunk-route-transport services equipped with Level 4 autonomous driving systems that enable full autonomous driving under specific conditions such as designated routes to solve bottlenecks in distribution. These investments partnering with startups are expected to enable the Company to offer integrated services that connect a range of elements from autonomous driving systems, vehicles equipped with the system, to AVs and logistics facilities. Going forward, the Company sets autonomous driving technology and other next-generation technologies as potential areas for future growth in the Automobility segment, and will contribute to a sustainable mobility society.

Specialty Financing

Aviation Capital Group LLC (“ACG”), a consolidated subsidiary of the Company which operates the aviation leasing business, recorded ¥74,800 million as extraordinary losses on all exposures to Russia (eight leased aircraft, financing and loan guarantees), resulting in a substantial decrease in earnings in the previous fiscal year. However, ACG increased revenues and income in the fiscal year under review due to significant recovery in operating lease revenues and gains on sale of aircraft, and other factors. The aviation leasing market has recently seen steady recovery in lease rates and aircraft prices, with demand from airlines increasing for purchase and re-leases of used aircraft centered on narrow-body types, which are the core products of ACG. Backed by this business environment in which we can expect long-term increases in used aircraft prices and lease rates, we anticipate that ACG’s performance will continue to steadily recover. Going forward, we will strive to regrow the aviation leasing business, responding to the rapid recovery in travel demand worldwide, as well as demand for replacement with next-generation aircraft that have higher fuel efficiency.

The Company invested and participated in Eastwood Climate Smart Forestry Fund I, a forest fund established and managed by Eastwood Forests, LLC, a forest asset management company under the umbrella of Sumitomo Forestry Co., Ltd. We aim to use the Fund not only to increase forest sequestration of carbon dioxide as climate-change measures, but also generate high-integrity carbon credits that also enhances the value of forestland as natural capital by rehabilitating the role of forests in protecting biodiversity and water resources, thereby taking this opportunity to develop new forest-related businesses.

International Business

The Company has started to collaborate with NTT Global Data Centers Americas, Inc. of the NTT Group, to jointly operate the data center business in Chicago, Illinois. This is a huge project encompassing three data centers that delivers a total of 104MW critical IT capacity, and we consider this as an excellent opportunity leading to further business growth, because Chicago is a city where data centers are concentrated with strong demands from hyperscalers. We will continue to promote initiatives leading to the development of digital infrastructures partnering with the NTT Group.

CSI, a consolidated subsidiary of the Company, acquired all shares of ExportXcel, Sdn. (“ExportXcel”), an ITAD services company that provides appropriate disposal of IT equipment in Malaysia, through CSI Leasing Malaysia, Sdn. Bhd., a subsidiary of CSI. ExportXcel is a leading company with excellent service expertise and processing capabilities that has been serving as an ITAD partner for several major IT manufacturers. Including EPC Japan mentioned in the Equipment Leasing segment, we will provide ITAD services of global standard in Japan and overseas.

Environmental Infrastructure

The Company acquired 34 locations of solar power stations in operation (303MW) in the United Kingdom jointly with Schroders Greencoat LLP (“Greencoat”), a company of the Schroders Group, one of the leading independent asset management group in the UK. Greencoat, the joint investor in this project, is one of the top asset owners in the UK that boasts renewable energy generation assets of 5.6GW (301 locations), and we consider it an ideal business partner for our full-scale entry into the solar power generation businesses in the UK. Joining forces with an expert business partner, we will contribute to spreading clean energy through our commitment to expand the renewable energy businesses in Europe and North America.

Investor Relations