Strengthening comprehensive proposal-based sales and initiatives targeting domestic-demand industries

「Against this backdrop, our Group has focused on providing diverse solutions as a value co-creation partner that goes beyond the boundaries of finance in addressing the social and business challenges surrounding our customers.」

「By co-creating with customers businesses promoting the introduction of commercial automatic cleaning robots and automatic serving robots, among others, we accumulated operating assets and expanded our earnings base by contributing to customers’ business expansion and addressing the social issue of labour shortages.」

「In addition to simply leasing goods, we actively pursued service businesses that improve the content and level of services, including a business alliance for vendor finance covering frozen-food vending machines and subscription services for furniture and drones. We further expanded our customer base by leveraging our collaboration with Mizuho.」

「Lease and instalment sales contract execution increased 55.7% year on year to ¥299,965 million, driven by an increase in the execution of industrial machinery and real estate projects.」

「In fiscal 2022, as social and economic activity moved toward normalisation from the COVID-19 pandemic, we focused on providing solutions addressing customers’ business and financial strategy needs and steadily pursued initiatives in our priority areas.」

「With the aim of achieving further growth for the Group and increasing the value provided to stakeholders, we set the following consolidated numerical targets for the final year: net income attributable to owners of the parent of ¥30 billion, global business balances at 3 times the level at the end of March 2019, and a target payout ratio of at least 25%.」

「In our priority areas, we strengthened initiatives in renewable energy within the environment and energy fields, including leasing wind power generation equipment, developing self-consumption energy supply services using solar power in collaboration with customers, and financing biomass power generation projects in cooperation with Mizuho Bank, Ltd.」

「Contract volume for leasing and installment sales increased 33.2% year on year to ¥518,216 million, owing to the capture of large projects involving industrial and machine tools, capital investment needs among telecommunications operators for information and communications equipment, and the execution of aircraft operating lease transactions.」

「Contract volume for leasing and installment sales increased 20.1% year on year to ¥324,219 million, owing to the capture of large projects involving industrial and machine tools, broad capital investment needs for information and communications equipment, and the execution of aircraft operating lease transactions.」

「Contract volume for leasing and installment sales increased 47.1% year on year to ¥182,256 million, owing to the capture of large projects involving industrial and machine tools, broad capital investment needs for information and communications equipment, and the steady execution of aircraft operating leases.」

「We built a track record under new business strategies by taking an overview of customers’ businesses, providing solutions addressing issues arising throughout the flow from procurement to product sales, actively participating in customers’ product sales, and jointly developing service-contract-based sales models.」

「In addition to steadily capturing capital investment demand for industrial and machine tools and transport equipment in lease and instalment sales, the execution of short-term real estate projects grew in both lease and instalment sales and finance. As a result, lease and instalment sales contract execution increased 37.7% year on year to ¥389,181 million, while finance contract execution increased 8.0% to ¥758,910 million.」

「In addition to steadily capturing capital investment demand for industrial and machine tools and transport equipment in lease and instalment sales and incorporating customers’ needs to expand their store networks overseas, the execution of short-term real estate projects grew in both lease and instalment sales and finance. As a result, lease and instalment sales contract execution increased 31.3% year on year to ¥269,891 million, while finance contract execution increased 19.8% to ¥522,553 million.」

「Primarily because we captured capital investment projects involving industrial and machine tools and executed short-term real estate projects, both lease and instalment sales and finance grew. Lease and instalment sales contract execution increased 22.9% year on year to ¥123,895 million, while finance contract execution increased 30.6% to ¥274,157 million.」

「In fiscal 2017, we advanced the business strategies and priority areas set out in the Fifth Medium-Term Management Plan. By providing high-value-added proposal-based sales that addressed customers’ entire business activities, we expanded initiatives supporting the capital investment and business activities of customers, primarily large and mid-sized corporations.」

「By promoting comprehensive proposal-based sales addressing customers’ challenges and latent needs, we expanded our initiatives involving capital investment projects, primarily for large and mid-sized corporate customers. We continued to strengthen our approach to domestic-demand industries, including distribution and retail, where funding demand is expected, and expanded transactions involving real estate leasing of land and buildings through initiatives for store equipment using environmental and energy-related subsidies, as well as collaboration with major store development companies.」

「In addition to capturing customers’ large-scale capital investment projects, primarily for major corporations, we further promoted comprehensive proposal-based sales to address a broad range of needs and worked to expand our customer base. We also continued to strengthen our initiatives targeting domestic-demand industries, including distribution and retail, which have been areas of focus in recent years, expanding projects involving the introduction of environment-related equipment using subsidies, the securitisation of leasehold deposits associated with store openings, and real estate leasing in collaboration with major store development companies.」