Strengthening the Sales Platform

「The main factor behind the increase in profit was higher profit recognized from joint investment businesses with partners.」

「We began offering leases with carbon credits to support customers' decarbonization efforts and enhance corporate value.」

「[Domestic Leasing Business] Revenue decreased by ¥24.5 billion, or 6.4%, year on year to ¥361.0 billion, while segment profit increased by ¥0.2 billion, or 1.0%, to ¥24.0 billion. The main factor behind the increase in profit was higher equity-method investment income from affiliates NTT・TCリース株式会社 and 日通リース＆ファイナンス株式会社.」

「[Domestic Leasing Business] Revenue decreased by ¥17.0 billion, or 6.6%, year on year to ¥241.0 billion, while segment profit increased by ¥1.0 billion, or 6.0%, to ¥17.3 billion. The main factor behind the increase in profit was higher equity-method investment income from affiliates NTT・TCリース株式会社 and 日通リース＆ファイナンス株式会社.」

「The main factor behind the increase in profit was higher equity-method investment income from affiliates NTT・TCリース株式会社 and 日通リース＆ファイナンス株式会社.」

「Revenue decreased by ¥11.5 billion, or 2.9%, year on year to ¥385.5 billion, while segment profit increased by ¥2.0 billion, or 9.2%, to ¥23.8 billion. The main factor behind the increase in profit was higher equity-method investment income from affiliates NTT・TCリース株式会社 and 日通リース＆ファイナンス株式会社.」

「The main factor behind the increase in profit was higher equity-method investment income from affiliates, including NTT・TCリース株式会社 and 日通リース＆ファイナンス株式会社.」

「During the consolidated fiscal year, NTT・TCリース株式会社, which carved out certain businesses of the core financial companies of the NTT Group and Nippon Express Group and in which we hold a 50% stake, and 日通リース&ファイナンス株式会社, in which we hold a 49% stake, were newly established. Co-creation businesses with these two industry-leading companies have now commenced.」

「During the second quarter of the current consolidated fiscal year, we acquired 50% of the total number of issued shares of NTT・TCリース株式会社, which assumed part of the leasing and global businesses operated by NTT Finance株式会社 through an absorption-type company split. As a result, NTT・TCリース株式会社 is now accounted for as an equity-method affiliate.」

「We entered into a capital and business alliance agreement with Nippon Telegraph and Telephone Corporation (hereinafter, “NTT”). As the first initiative under the alliance, we decided to carve out part of the leasing and global businesses of NTT Finance Corporation, the core financial company of the NTT Group, to establish a joint venture owned by NTT, NTT Finance Corporation and our company, in order to strengthen and expand the leasing and finance businesses of both companies in Japan and overseas.」

「In the final year of the Third Medium-Term Management Plan, launched in FY2016, we pursued further initiatives to strengthen the sales platform and the management platform toward achieving our management targets.」

「In FY2017, the second year of the three-year Third Medium-Term Management Plan beginning in FY2016, the Group implemented the following measures to strengthen its operating and management foundations.」

「① Strengthening the Sales Platform [Domestic Leasing Business] ・We entered into a business partnership agreement with 月岛机械株式会社 to promote business expansion. [Specialty Business] ・Together with IHG・ANA・ホテルズグループジャパン and GHS株式会社, we agreed to participate in the hotel development business for ANA InterContinental Beppu Resort & Spa, to be built in Beppu, Oita Prefecture, and scheduled to open in 2019. [International Business] ・The Ministry of the Environment and its implementing organization, the Global Environment Centre (GEC), selected our proposal for the installation of a 1.53 MW rooftop solar power generation system at an automotive parts factory under the equipment subsidy program of the FY2017 Financing Program for the Joint Crediting Mechanism (JCM), a bilateral crediting mechanism.」

「・Together with 大连冰山集团有限公司, China's largest manufacturer of refrigeration and air-conditioning equipment, we established the leasing company 大连冰山集团华慧达融资租赁有限公司, which became our affiliate, with the aim of further promoting sales of its products.」

「We agreed that our consolidated subsidiary 日本カーソリューションズ株式会社 would acquire, effective 1 April 2017, approximately 4,000 leased vehicles and the related lease receivables held by ジェイティクリエイティブサービス株式会社, a wholly owned consolidated subsidiary of 日本たばこ産業株式会社.」

「As a measure to strengthen the sales platform, we established 七ツ島バイオマスパワー合同会社 with IHI Corporation and 7 other investing companies to develop a wood biomass power generation business in Kagoshima, Kagoshima Prefecture, on the largest scale in the prefecture, and made it an equity-method affiliate. In the specialty business, for the purpose of jointly promoting the asset management business, we acquired 30% of the issued shares of 日土地アセットマネジメント株式会社 held by 日本土地建物株式会社 and made it an equity-method affiliate. In the international business, we completed the additional acquisition of shares in CSI Leasing, Inc., a major independent leasing company in the United States, making it a wholly owned subsidiary.」

「As a measure to strengthen the sales platform, we established 七ツ島バイオマスパワー合同会社 with IHI Corporation and 7 other investing companies to develop a wood biomass power generation business in Kagoshima, Kagoshima Prefecture, on the largest scale in the prefecture. In the specialty business, for the purpose of jointly promoting the asset management business, we acquired 30% of the issued shares of 日土地アセットマネジメント株式会社 held by 日本土地建物株式会社 and made it an equity-method affiliate. In the international business, we completed the additional acquisition of shares in CSI Leasing, Inc., a major independent leasing company in the United States, making it a wholly owned subsidiary.」

「We pursued further initiatives to strengthen both the sales platform and the management platform.」