Initiatives in Highly Profitable Areas and Expansion of Business Domains

「Fiscal 2023 results: Net income ¥35.2 billion; target ¥42.0 billion; ROA *1 1.6%; target 1.6% or higher; ROE 12.3%; target 12% or higher」

「Gross profit increased 12.8% year on year to ¥53,711 million. Operating income increased 12.5% to ¥30,061 million, as strong net profit more than offset increases in funding costs, personnel expenses and property expenses, among others.」

「Finance revenue increased 23.3% year on year to ¥14,599 million, and operating income increased 9.1% to ¥9,144 million. In terms of financial position, the combined balance of lease and instalment-sale assets, finance assets and other operating assets increased 6.3% from the end of the previous fiscal year (the end of the fiscal year ended March 2023) to ¥2,743,945 million.」

「The business portfolio was divided into 3 fields with different growth time horizons, core, growth and frontier, and managed accordingly.」

「Gross profit increased 22.8% year on year to ¥47,606 million, due to the accumulation of assets in the profitable finance and real-estate businesses.」

「Gross profit increased 21.2% year on year to ¥31,465 million, due to the accumulation of assets in the profitable finance business and the collection of overdue lease payments related to an aircraft transaction, a one-time factor, among other items.」

「Gross profit increased 26.6% year on year to ¥15,992 million as a result of the company's continued focus on accumulating assets in profitable real-estate and finance businesses and improved profitability. Operating income increased 34.2% to ¥8,572 million despite the recognition of allowances for some foreign-currency-denominated assets and other items.」

「The Group has launched its Sixth Medium-Term Management Plan, covering the 5-year period from April 2019 through fiscal 2023. Its vision is to be a value-creating company that continues to take on challenges together with customers. The Group will pursue joint business development with customers and priority areas that capture changes in social and industrial structures, while combining the expertise it has accumulated with the business platforms and expertise of the Mizuho Financial Group and Marubeni Group.」

「Through these alliances, the company will provide new solutions as a partner in customers' business development across a greatly expanded business field in Japan and overseas, and will pursue value co-creation with customers and the development of new overseas bases and businesses.」

「In fiscal 2017, the first year of the plan, the company steadily implemented strategies for further growth, including taking on new fields and promoting initiatives focused on profitability.」

「The business strategy was to actively and steadily pursue, using the business expertise and financial strength accumulated to date, the more profitable initiatives of deepening core businesses by leveraging knowledge and experience related to physical assets, and entering new priority areas in response to changes in social and industrial structures.」

「The Group launched its Fifth Medium-Term Management Plan, covering the period from fiscal 2017 through fiscal 2019. Under this plan, it will use its accumulated business expertise and financial strength to actively promote more profitable businesses in addition to its traditional core businesses.」

「While controlling risk, the company will promote initiatives in high-margin businesses and expand its business scope, seeking further evolution as a comprehensive financial services group.」