Overview of Latest Financial Results

During the six months ended September 30, 2025, revenues increased ¥27,400 million, or 4.1%, to ¥693,300 million, and gross profit increased ¥21,000 million, or 15.6%, to ¥155,500 million, respectively, from the same period of the previous fiscal year. The latter was mainly due to an increase in income in the Specialty Financing, International Business, and Environmental Infrastructure segments.

Selling, general and administrative expenses increased ¥4,800 million, or 6.1%, to ¥83,000 million from the same period of the previous fiscal year, mainly due to increases in personnel and non-personnel expenses in the International Business and Automobility segments.

Non-operating income minus non-operating expenses amounted to a net income of ¥4,700 million, down ¥2,700 million, or 36.3%, from the same period of the previous fiscal year. This was mainly caused by a decrease in equity in earnings of affiliates.

Due to the factors mentioned above, ordinary income increased ¥13,500 million, or 21.3%, to ¥77,200 million from the same period of the previous fiscal year.

Extraordinary income minus extraordinary losses amounted to a net income of ¥63,100 million, up ¥56,400 million, or 842.5%, mainly due to the recording of Russia-related insurance settlement. Income taxes increased ¥22,200 million, or 109.4%, to ¥42,600 million from the same period of the previous fiscal year. Net income attributable to non-controlling interests decreased ¥2,000 million, or 28.8%, to ¥4,900 million from the same period of the previous fiscal year.

As a result, net income attributable to owners of parent increased ¥49,700 million, or 115.2%, to ¥92,800 million from the same period of the previous fiscal year.

Total assets at the end of the first six months of the fiscal year ending March 31, 2026 decreased ¥14,100 million, or 0.2%, to ¥6,848,800 million, and segment assets decreased ¥88,300 million, or 1.5%, to ¥5,971,600 million, respectively, from the end of the previous fiscal year. Total liabilities decreased ¥9,700 million, or 0.2%, to ¥5,676,300 million. The decrease in total assets and liabilities was mainly due to foreign exchange fluctuations.

Interest-bearing debts increased ¥26,500 million, or 0.5%, to ¥4,939,000 million, respectively, from the end of the previous fiscal year.

Total net assets decreased ¥4,400 million, or 0.4%, to ¥1,172,500 million from the end of the previous fiscal year. This was mainly caused by a ¥86,700 million decrease in translation adjustments while retained earnings increased by ¥76,600 million.

As a result, the shareholders’ equity ratio reached 15.0%.

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Revenues increased ¥4,800 million, or 2.1%, to ¥229,100 million, and segment income increased ¥1,500 million, or 13.3%, to ¥12,800 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly due to higher profits from joint investment businesses with partners. The balance of segment assets increased ¥1,700 million, or 0.1%, to ¥1,276,600 million from the end of the previous fiscal year.

Revenues increased ¥5,600 million, or 3.7%, to ¥159,700 million, and segment income decreased ¥4,000 million, or 38.6%, to ¥6,300 million, respectively, from the same period of the previous fiscal year. The decrease in segment income was mainly because of the recording of extraordinary losses related to a subsidiary’s IT systems. The balance of segment assets increased ¥10,100 million, or 2.0%, to ¥510,800 million from the end of the previous fiscal year.

Revenues increased ¥5,000 million, or 3.3%, to ¥155,200 million, and segment income increased ¥52,900 million, or 311.9%, to ¥69,900 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly because of the recording of Russia-related insurance settlement at Aviation Capital Group LLC, a consolidated subsidiary. The balance of segment assets decreased ¥61,400 million, or 2.1%, to ¥2,911,500 million from the end of the previous fiscal year mainly due to foreign exchange fluctuations.

Revenues increased ¥4,600 million, or 4.4%, to ¥109,100 million, and segment income increased ¥2,300 million, or 47.2%, to ¥7,100 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 operational investment securities. The balance of segment assets decreased ¥31,600 million, or 3.2%, to ¥945,600 million from the end of the previous fiscal year mainly due to foreign exchange fluctuations.

Revenues increased ¥7,600 million, or 23.7%, to ¥39,900 million, and segment income increased ¥1,400 million, or 160.3%, to ¥2,300 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly due to an increase in gain on sale of the solar power business and an achievement of profitability in biomass co-firing power generation business. The balance of segment assets decreased ¥5,800 million, or 2.0%, to ¥279,400 million from the end of the previous fiscal year.