Respond to advances in global mobility services and cooperate with local communities to contribute to social infrastructure development

In the Automobility segment, Tokyo Century provides mobility-related services through its auto leasing and car rental businesses. These services play a crucial role in contributing to social infrastructure while also having material importance to supporting safety. In a business environment free of regulatory constraints, Tokyo Century is branching out from leasing and financing to develop and grow unique business models based on the concept of “Finance × Services × Business Expertise” through co-creation with partners. For example, we recognize that the revitalization of local communities through the tourism industry is an important task as the depopulation of areas outside of major urban centers becomes an increasingly serious social issue. These characteristics of our business constitute one of the reasons we have defined “contribution to social infrastructure development” among our key issues (materiality).

Contribution to the SDGs

3 Good health and well-being / 11 Sustainable cities and communities

Opportunities

  • Expansion of customer value propositions through utilization of social infrastructure assets indispensable to everyday life

Risks

  • Emergence of stranded assets due to deterioration of social infrastructure

Logic Model and Impact KPI

This figure represents the middle part of Tokyo Century’s logic model. The pathway shows that the company’s outputs—such as IT equipment, mobility, real estate, data centers, and storage battery businesses—produce outcomes, including the development of IT infrastructure, diversified means of transportation, and an energy foundation. These efforts eventually culminate in the impact of developing resilient, safe, and secure social infrastructure. The company has set Impact KPIs, such as the lease contract value for public institutions and energy storage capacity. These initiatives align with SDGs 3, 9, and 11.

Goals and Progress

Output KPIs

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KPI Applicable companies Unit Fiscal 2022 Fiscal 2023 Fiscal 2024
Transaction volume (leases, financing, investments, etc.) Tokyo Century Corporation and 15 major subsidiaries Billions of yen 479.7 641.2 568.4
Promotion of car rental services (number of rental cars) NRS*1 Vehicles 33,201 35,158 34,521
Ratio of rental cars equipped with safety features (automated brakes, etc.) NRS % 97.2 97.4 99.4
Number of vehicles equipped with telematics services NCS*2・NRS Vehicles 82,051 88,359 88,949
Number of safe driving lessons conducted using telematics services NCS Lessons 1,132 1,049 1,163
Participants 18,774 14,149 17,740

Impact KPI

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KPI Applicable companies Unit Fiscal 2022 Fiscal 2023 Fiscal 2024
Volume of lease contracts with public institutions*3 Tokyo Century Corporation and FLCS Co., Ltd. Billions of yen 121.6 144.2 168.1
Data center power intake volume (for data centers providing services as of March 31 of each fiscal year) Tokyo Century Corporation (joint businesses with partner companies) MW 22 58 70
Installed energy storage capacity of storage battery business (for storage batteries installed as of March 31 of each fiscal year) Tokyo Century Corporation and Kyocera TCL Solar LLC MWh none none 11

Initiative Example

We are participating in large-scale redevelopment projects such as the Tokyo Cross Park Vision project in Uchisaiwaicho 1-chome, Chiyoda-ku, Tokyo and the TOKYO TORCH project in the Tokiwabashi area in front of Tokyo Station.

The Tokyo Cross Park Vision project, comprising the North Zone, Central Zone, and South Zone, is the largest development project in central Tokyo, with a floor area of approximately 1.1 million square meters and co-created by 10 companies (including related rights holders and parent companies) rooted in the area. Tokyo Century is promoting the project as an operator of the South Zone, the location of the South Tower (scheduled to be completed in fiscal 2028), which will consist of offices, a hotel, wellness facilities, and other amenities.

A new hotel and hall in TOKYO TORCH, which we jointly acquired with Mitsubishi Estate Co., Ltd., is scheduled to be completed in fiscal 2027. It has been decided that Dorchester Collection, one of the world’s leading ultra-luxury hotel brands, will make its first foray into Asia at TOKYO TORCH. Our participation in these redevelopment projects will help improve social infrastructure and enhance the charm of Tokyo, Japan.

In 2022, we opened Hotel Indigo Karuizawa as a new lifestyle boutique hotel reflecting the story of Karuizawa. It is our second project in collaboration with InterContinental Hotels Group PLC, following our first resort development project, the ANA InterContinental Beppu Resort & Spa.

The hotel is the first hotel owned and operated by the Tokyo Century Group, and local timber (Nagano-grown Karamatsu pine) was used for its exterior and interior construction. In addition, we reflect the unique characteristics of the hotel’s surrounding area in its meals and services to remain close to the local community in helping to reduce CO2 emissions and revitalize local regions.

Tokyo Century is jointly operating data centers in India with NTT Global Data Centers Corporation (NTT GDC) of the NTT Group. In 2022, construction of the Mumbai 8 Data Center was completed and started operation.

In India, data usage is expected to increase rapidly against the backdrop of government-led digitization measures, including the expansion of smartphones and the use of video content. As a result, demand for data centers is rising. NTT GDC and Tokyo Century have therefore decided to expand their operations to the Navi Mumbai area, located east of Mumbai, and construction is progressing in stages.

Sustainability

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