IR InformationMessage from the President & CEO
“Highly Specialized and Unique Financial Services Company“ that works alongside and develops with customers in pursuit of their growth
In the fiscal year ended March 31, 2016 (hereinafter “FY2015”), the Group was able to steadily increase operating assets in each of Specialty Financing, Domestic Automobile Financing, and International Business which are considered as growth areas, and as a result, operating assets increased 4.4% to 2,991.1 billion yen from the end of the previous fiscal year. In terms of profits and losses, revenues amounted to 940.5 billion yen, ordinary income amounted to 68.0 billion yen, and net income attributable to owners of parent (hereinafter “net income”) amounted to 40.0 billion yen, which represents record highs for both revenues and each profit category as well. In particular, since the establishment of Century Tokyo Leasing Corporation in 2009, we have achieved record high for ordinary income for seven consecutive years and net income for five consecutive years.
As a notable achievement in FY2015, we actively utilized operating leases in the application of the “promotion of investment in cutting-edge facilities using lease methods” conducted by the Ministry of Economy, Trade and Industry based on the Industrial Competitiveness Enhancement Act to capture a share of 50% (company estimate).
In February 2016, we decided to acquire additional shares of CSI Leasing, Inc., a leading independent leasing company in the U.S., and made the company a wholly-owned subsidiary in June. Moving forward, we will utilize CSI Leasing's global and deeply rooted local network to generate synergies and further evolve our business models.
Trends in domestic leasing market and the negative interest rate policy introduced by the Bank of Japan mean that the business environment, including financial and economic situations around the world, will remain unclear. Under these circumstances, we forecast that we will set the following new records high in the fiscal year ending March 31, 2017 (hereinafter “FY2016”): revenues of 950.0 billion yen, operating income of 70.5 billion yen, ordinary income of 72.0 billion yen and net income of 42.5 billion yen. This projection is based on a management policy dedicated to a wholly profit-oriented ROA approach as we endeavor to achieve yet more sustainable growth in our operating segments.
A year-end dividend for FY2015 increased by 10 yen per share from our previously announced forecast to 45 yen per share. This number was based on the 20% dividend payout ratio announced at the beginning of the fiscal year. We paid annual dividends of 80 yen per share, up by 15 yen year on year (dividend payout ratio of 21.1%).
For FY2016, we plan to pay annual dividends of 95 yen per share, up by 15 yen year on year (dividend payout ratio of 23.6%, an interim dividend of 47 yen, and a year-end dividend of 48 yen). By successfully implementing the Third Medium-Term Management Plan as we continue striking a balance between shareholder returns and growth investments, we are aiming for solid increases in dividends by further raising the dividend payout ratio and are meeting the expectations of our shareholders and various other stakeholders.
President & CEO, Representative Director