Creation of new businesses driven by technical innovation

Create new businesses by integrating new technologies into financial services and contribute to the digital economy

Tokyo Century has positioned digital transformation as a means of strengthening its management base to realize innovation in its corporate culture and business model. The Company seeks to create new businesses by integrating new technologies into financial services and to contribute to the digital economy through collaboration with partner companies and investment in companies boasting promising digital technologies. Moreover, we have set up the dX & Process Management Division to guide the ongoing promotion of digital transformation.

Tokyo Century has defined four policies for its digital transformation strategies aimed at achieving its management vision and ensuring its initiatives are advanced in the desired direction: 1. Innovate corporate culture, organization, and processes (implement initiatives for evolving into a cutting-edge digital transformation company); 2. Improve productivity through innovation (fully deploy digital tools to improve operations and productivity); 3. Transform existing businesses (implement key measures to transform existing businesses to overcome Japan’s “2025 Digital Cliff” associated with legacy systems); and 4. Create new businesses (focus on co-creation of new businesses with corporate partners).

Contribution to the SDGs

Opportunities

Improvement of customer value propositions using digital technologies

Risks

Diminishment of customer value propositions due to obsolescence of existing business model

Goals and Progress

KPI (Target)	Fiscal 2024 achievements
Certification under METI’s DX Certification system^*1	Inclusion among Noteworthy DX Companies^*2 in May 2024 Renewal of certification under DX Certification System in March 2025
Digital transformation strategies	Fiscal 2024 initiatives
Innovate corporate culture, organization, and processes Implement the budget, education, and evaluation systems for disseminating and promoting digital transformation strategies	Promotion of cross-organizational co-creation centered on DX Task Force Development of Companywide digital transformation promotion system through digital transformation literacy training for all employees (99.6% completion rate) and programs for digital transformation staff
Improve productivity through innovation Apply robotic process automation and other innovations to improve productivity and expand teleworking	Promotion of digitalization of document management processes and of other Companywide projects to achieve comprehensive digital transformation in fiscal 2025 Commencement of transition to paperless expense management processes and file server consolidation (completed in fiscal 2025)
Transform existing businesses Formulate measures for addressing issues toward completely reforming existing IT systems Apply AI and big data to introduce innovation into business processes	Stable operation of core internal lease management systems Utilization of proven cloud systems (SaaS) and revision of business processes for operating segment systems to facilitate AI and data utilization
Create new businesses Co-create new businesses by capitalizing on digital infrastructure	Reassessment of strategic themes for improving operating segment value propositions and enhancement of coordination with partner companies Promotion of new business ideation in operating segments

*1Outline of the DX Certification System
The DX Certification system is an initiative implemented under the Act on Partial Revision of the Act on Facilitation of Information Processing, which came into force on May 15, 2020. In line with the guidelines set by the Japanese government that present to companies ideal approaches for making use of strategic systems in their business management and for creating such systems, METI certifies companies engaging in outstanding efforts, if companies eligible for certification file a request accordingly. Under the DX Certification system, companies are expected to comply with basic items related to management and business model formulation, strategic development of and revisions to digital transformation processes, growth indicator definition, and stakeholder engagement as defined in Digital Governance Code 3.0, which was put forth by METI in June 2024. Tokyo Century has already taken measures toward addressing these items, and such preparations for digital transformation are thought to have been a factor behind its receipt of certification. Moreover, the Company was recognized as a DX-certified operator under this program in March 2021.
*2Noteworthy DX Companies
Tokyo Century was included among the Noteworthy DX Companies 2024 announced in May 2024. Although these companies were not selected for the DX Stocks 2024 category, they have made noteworthy efforts, particularly in terms of improving corporate value.

Initiative Example

Tokyo Century is collaborating with map solutions provider ZENRIN CO., LTD. and Nippon Rent-A-Car Service, Inc. to conduct a verification test of the MaaS tourism service in Nagasaki City.

ZENRIN’s smartphone app enables tourists to rent cars under a special plan. In addition to providing local information, it also allows users to purchase tickets for public transportation and tourist sites, exchange awarded points for products, and manage travel history. Combined with car rentals, this will improve the convenience of traveling to sightseeing spots in suburban areas and encourage more excursions.

Outside of this project, we will continue to discuss with ZENRIN the commercialization of safe and secure mobility services and other ways to help revitalize local communities nationwide.

We work with OMRON Social Solutions Co., Ltd. (OSS) to offer the POWER CONTINUE fixed-price power conditioner^* rental service for low-voltage solar power plants.

OSS handles equipment replacement and maintenance, while Tokyo Century provides related financial services and the TCplats subscription integration platform. The POWER CONTINUE service improves power generator output at zero initial cost and eliminates the burden of unexpected costs such as repair and replacement of power conditioners.

*A machine that converts electricity generated by solar power from direct to alternating current for use in homes, buildings, factories, and other facilities.

IBeeT Corporation, a joint venture with ITOCHU Corporation, provides household electricity storage systems (decentralized power supply) on a subscription basis. In the storage battery market, the need for household and medium- to large-scale industrial electricity storage systems is expected to increase for multiple reasons, such as for the efficient use of renewable energy, improved resilience against natural disasters, and electricity storage in case of power outages.

In the future, we will develop an efficient decentralized power supply platform using AI to achieve mutual supply of surplus power generated from decentralized power sources owned by IBeeT. Through the platform, we will contribute to the realization of a society that is both decarbonized and based on decentralized energy sources.