The Tokyo Century Group’s Value Creation Process

SUSTAINABILITY
MANAGEMENT

The Tokyo Century Group is advancing initiatives based on the five key issues that represent growth opportunities and management strategies for improving business value in order to increase its management resources and maximize its positive outcomes.

OverviewPDF:1,455KB

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Note:Figures above are as of March 31, 2023.
INPUT	Stable fund procurement Interest-bearing debt: ¥4,514.7 billion Shareholders’ equity: ¥761.6 billion Ratings:^*1 AA from Japan Credit Rating Agency, Ltd.; AA– from Rating and Investment Information, Inc.; and BBB from S&P Global Ratings Japan, Inc.
OUTCOMES (Medium- to Long-Term Vision)	Financial Targets for Fiscal 2027 Net income attributable to owners of parent: ¥100.0 billion Return on assets:^* 1.4% Return on equity: 10% *Calculated as the ratio of net income to total assets

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*Figures above are as of March 31, 2023.
INPUT	Diverse human resources who sustain value creation Number of employees (consolidated): 7,878 Ratio of female employees (non-consolidated): 32.0% Ratio of mid-career hires (non-consolidated): 33.5% Total investments in human resource recruitment and development:^*2 More than ¥800 million (KPI in fiscal 2027)
OUTCOMES (Medium- to Long-Term Vision)	Employee engagement index:^*3 Maintain and improve ratio of positive responses Ratio of women among new-graduate hires (non-consolidated): 40% or more Ratio of female managers (non-consolidated): 30% or more Ratio of mid-career hires (non-consolidated): Maintain and improve the current level

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*Figures above are as of March 31, 2023.
INPUT	Value-added services Unique financial service businesses Expertise in handling highly specialized assets Subscription platforms
OUTCOMES (Medium- to Long-Term Vision)	Improvement of customer value proposition Development of high-profit business model through creation of financial services using digital technologies Cultivation of digitally proficient human resources Improvement of productivity by enhancing internal processes Reduction of burden placed on frontline organizations Improvement of operational efficiency through Groupwide deployment of core systems

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*Figures above are as of March 31, 2023.
INPUT	Robust portfolio of diverse assets Segment assets: ¥5,363.8 billion Equipment Leasing: ¥1,287.1 billion Automobility: ¥611.6 billion Specialty Financing: ¥2,490.6 billion International Business: ¥655.7 billion Environmental Infrastructure: ¥277.9 billion
OUTCOMES (Medium- to Long-Term Vision)	Segment assets: ¥6.4 trillion Increase in portion of portfolio accounted for by growth areas of services and businesses (investment and operation)

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*Figures above are as of March 31, 2023.
INPUT	Trusting relationships with stakeholders Partnership strategy Scope of global network: More than 50 countries and regions Number of affiliates: More than 50 Annual number of activities for engagement with shareholders and investors: More than 200
OUTCOMES (Medium- to Long-Term Vision)	Scale of overseas segment asset portfolio to be increased by expanding overseas network: Approx. ¥1.1 trillion Expansion of joint businesses with partners Number of engagement activities with shareholders and investors: More than 200 a year

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*Figures above are as of March 31, 2023.
INPUT	Provision of renewable energy Number of solar power plants: 145 Generation capacity of renewable energy projects: 750 MW
OUTCOMES (Medium- to Long-Term Vision)	Renewable energy generation capacity: 1,000 MW or more Timing of accomplishment of carbon neutrality:^4 Fiscal 2040 Interim carbon neutrality goals by fiscal 2030 / Reduction of greenhouse gas emissions:^4 50%

*1As of July 1, 2023
*2Training expenses + (Number of training sessions × Personnel expenses) + Recruitment expenses
*3Based on ratio of positive responses to multiple choice questions on 2022 employee awareness survey (63% in fiscal 2022)
*4Rate of reduction of Scope 1 and Scope 2 greenhouse gas emissions from base year of fiscal 2021