Overview of Latest Financial Results

On a consolidated basis for the three months ended June 30, 2026, revenues increased ¥40,800 million, or 11.7%, to ¥388,400 million, and gross profit increased ¥15,100 million, or 19.5%, to ¥92,300 million, respectively, from the same period of the previous fiscal year. The latter was mainly due to an increase in income in the Global Business segment and the Transport segment.

Selling, general and administrative expenses increased ¥4,100 million, or 9.8%, to ¥46,000 million from the same period of the previous fiscal year, mainly due to increases in personnel and non-personnel expenses in the Global Business segment.

Non-operating income minus non-operating expenses amounted to a net income of ¥4,800 million, up ¥2,800 million, or 141.4%, 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 ¥13,800 million, or 36.9%, to ¥51,100 million from the same period of the previous fiscal year.

Extraordinary income minus extraordinary losses amounted to a net income of ¥1,500 million, mainly due to the recording of litigation settlement proceeds and other items. Income taxes increased ¥2,100 million, or 18.9%, to ¥13,400 million from the same period of the previous fiscal year.

Net income attributable to non-controlling interests increased ¥300 million, or 6.7%, to ¥4,100 million from the same period of the previous fiscal year.

As a result, net income attributable to owners of parent increased ¥13,000 million, or 59.1%, to ¥35,100 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, 2027 increased ¥222,700 million, or 3.1%, to ¥7,437,500 million, and segment assets increased ¥145,200 million, or 2.3%, to ¥6,455,900 million, respectively, from the end of the previous fiscal year. Total liabilities increased ¥183,400 million, or 3.1%, to ¥6,145,700 million, and interest-bearing debts increased ¥228,400 million, or 4.4%, to ¥5,370,900 million, respectively, from the end of the previous fiscal year.

Total net assets increased ¥39,200 million, or 3.1%, to ¥1,291,800 million from the end of the previous fiscal year. This was mainly due to a ¥13,500 million increase in retained earnings and a ¥22,100 million increase in translation adjustments.

As a result, the shareholders’ equity ratio increased by 0.1 percentage points compared with the end of the previous fiscal year to 15.6%.

For more information, please refer to IR Library.

In connection with its organizational and structural transformation effective April 1, 2026, the Group has changed its reportable segments to foster collaboration between its customer-facing business units (Domestic Business and Global Business), which drive customer-centric business initiatives, and its product development units (Social Infrastructure, Transport, Mobility, and Corporate Investment), which provide sophisticated solutions. This change is intended to create synergies across businesses and enhance the Group’s ability to deliver value to customers and society.

As a result of this change, effective from the first quarter of the fiscal year ending March 31, 2027, the Company has changed its reportable segments from the previous five segments, “Equipment Leasing,” “Automobility,” “Specialty Financing,” “International Business,” and “Environmental Infrastructure,” to the following six segments: “Domestic Business,” “Global Business,” “Social Infrastructure,” “Transport,” “Mobility,” and “Corporate Investment.”

Revenues for each segment represent “revenues from customers,” and segment income represents the amount for the “reportable segment.”

In addition, the year-on-year comparisons below are based on figures for the previous fiscal year that have been reclassified to reflect the new segment classification.

Revenues increased ¥10,200 million, or 8.7%, to ¥127,600 million, and segment income increased ¥1,200 million, or 17.2%, to ¥8,100 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly due to an increase in profit recognized from NTT TC Leasing Co., Ltd., a joint venture company with a partner. The balance of segment assets decreased ¥17,100 million, or 1.3%, to ¥1,290,600 million from the end of the previous fiscal year.

Revenues increased ¥17,000 million, or 35.9%, to ¥64,300 million, and segment income increased ¥1,400 million, or 37.4%, to ¥5,000 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly because of the receipt of large-scale IT asset disposal (ITAD) orders at CSI Leasing, Inc., a consolidated subsidiary, as well as profit growth in North America, driven by steady leasing transactions. The balance of segment assets increased ¥29,400 million, or 3.2%, to ¥955,400 million from the end of the previous fiscal year.

Revenues decreased ¥1,000 million, or 2.5%, to ¥40,700 million, and segment income increased ¥900 million, or 37.8%, to ¥3,300 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly because of an increase in gain on sale in the real estate business, as well as increased income mainly driven by the overseas renewable energy business, etc., in the environmental infrastructure business. The balance of segment assets increased ¥21,700 million, or 2.0%, to ¥1,105,600 million from the end of the previous fiscal year.

Revenues increased ¥10,500 million, or 20.5%, to ¥61,500 million, and segment income increased ¥8,700 million, or 245.4%, to ¥12,200 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly because of an increase in gain on sale of aircraft in the aviation business and an increase in income from the sale of vessels in the shipping business. The balance of segment assets increased ¥100,000 million, or 4.4%, to ¥2,348,700 million from the end of the previous fiscal year.

Revenues increased ¥5,400 million, or 6.3%, to ¥90,700 million, and segment income increased ¥900 million, or 13.7%, to ¥7,400 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly due to higher gain on sale of vehicles, reflecting increases in used vehicle prices and other factors, as well as higher revenues from car rental services for inbound tourism. The balance of segment assets increased ¥22,800 million, or 4.2%, to ¥571,200 million from the end of the previous fiscal year.

Revenues decreased ¥100 million, or 3.3%, to ¥2,700 million, and segment income decreased ¥200 million, or 12.5%, to ¥1,400 million, respectively, from the same period of the previous fiscal year. The decrease in segment income was mainly due to lower capital gains than in the same period of the previous fiscal year. The balance of segment assets decreased ¥100 million, or 0.1%, to ¥91,900 million from the end of the previous fiscal year.