Sustainable resource use

Information and communications equipment is a major offering of our leasing business. In recent years, greater importance has been placed on the environment and on information management with regard to the disposal of end-of-lease IT equipment. This trend is anticipated to spur rapid growth in demand for IT asset disposition (ITAD) services such as data erasing and disposal for IT equipment, which can be used to ensure the safe and appropriate disposal of these IT assets. We anticipate that this demand will be seen centered on global companies seeking to provide services that are standardized on a worldwide basis. In this regard, U.S.-based IT leasing subsidiary CSI Leasing, Inc., is a major source of strength. The company is able to supply high-quality global-standard services through its IT equipment leasing and ITAD service operations in more than 50 countries across the globe. In fiscal 2022, CSI Leasing posted ordinary income approximately 4.7 times the level seen in fiscal 2015, when Tokyo Century commenced investment. Moreover, CSI Leasing acquired companies in Germany, Denmark, and Sweden in fiscal 2022 to establish local bases in these markets for propelling the development of its IT equipment life-cycle management service businesses.

In the aviation business, major U.S. aircraft leasing company ACG is engaged in self-driven forays into the operating lease business for new and other aircraft. Going forward, we will continue to pursue intra-Group synergies capitalizing on the strengths of the Group’s aircraft value chain, which includes such companies as aircraft parts and service business operator GA Telesis, LLC, and allows for strategic aircraft life-cycle management.

Tokyo Century’s automobility business contributes to sustainable resource use through a value chain that encompasses maintenance factories. In this area, Nippon Rent-A-Car Service, Inc., offers car rental services that deliver improved customer convenience and which contribute to sharing economies, as exemplified in the trend toward transitioning from ownership to use, amid the rising focus on realizing an environmentally sound, sustainable economy and society. In addition, Tokyo Century has concluded a capital and business alliance with MIRAI-LABO, which possesses electric vehicle (EV) battery diagnosis and evaluation and reuse technologies. The goal of this alliance is to expand its EV leasing and rental businesses. Through this alliance, the used EV battery diagnosis technologies of MIRAI-LABO, which is acting based on its expressed goal of becoming a GX platform holder, will be utilized to strengthen these businesses. At the same time, we will work with MIRAI-LABO’s partners to bolster and supply environment-friendly mobility services related to repurposing and recycling of EV batteries. In fiscal 2022, Tokyo Century concluded a business alliance agreement with Kansai Electric Power Company, Incorporated, in relation to a stationary storage battery business utilizing used batteries from EVs, such as electric forklifts and motorcycles. In this alliance, we are examining the possibility of combining used batteries to provide larger-than-ever stationary batteries as grid-scale storage batteries. Furthermore, we are assessing the feasibility of collecting used batteries from end-of-lease electric motorcycles and other EVs to be reused as stationary storage batteries.