Tokyo Century Corporation · TSE:8439
Tokyo Century — FY2024 Earnings Presentation
59 slides from Tokyo Century's earnings presentation, Mar 31, 2025
Slide 1: IR Presentation for the Fiscal Year Ended March 31, 2025
IR Presentation for the Fiscal Year Ended March 31, 2025
Slide 2: Table of Contents
Table of Contents Results for FY2024 (Fiscal Year Ended March 31, 2025) Highlights of Medium-Term Management Plan 2027 Executive Summary 4 Management Targets: Financial and Non-financial Targets 37 FY2024 Financial Highlights and FY2025 Forecast 5 ROE and P/B Ratio 38 FY2024 Results by Operating Seg
Slide 3: Results for FY2024 (Fiscal Year Ended March 31, 2025)
Results for FY2024 (Fiscal Year Ended March 31, 2025)
Slide 4: Executive Summary
Executive Summary Net income hit a record high of ¥85.3 billion (up ¥13.1 billion or 18% YoY), with ROE reaching 9.0％ FY2024 ✓ International Business and Specialty Financing drove performance, and gains on sales of Results cross-held shares also contributed to the results ✓ Individual operating segm
Slide 5: FY2024 Financial Highlights and FY2025 Forecast
FY2024 Financial Highlights and FY2025 Forecast With record-high ordinary income and net income in FY2024, we aim to set new record highs again in FY2025 （Billions of yen） FY2023 FY2024 FY2025 Result Result Change Forecast Change Ordinary income 117.3 132.3 15.0 12.8% Net income (loss) attributable
Slide 6: FY2024 Results by Operating Segment
FY2024 Results by Operating Segment Income increased in International Business, Specialty Financing, and Automobility, with gains on sales of cross-held shares recorded in Other Net income attributable to owners of parent （Billions of yen) FY2023 FY2024 Result Result Change Major factors in change (
Slide 7: FY2025 Performance Forecast (YoY Changes)
FY2025 Performance Forecast （YoY Changes) Profit growth and insurance settlement proceeds expected, but risk buffer factored in YoY Changes in net income attributable to owners of parent (+) Insurance settlement proceeds Approximately ¥40.0 billion is to be recorded due to insurance settlement proce
Slide 8: FY2025 Performance Forecast by Operating Segment
FY2025 Performance Forecast by Operating Segment Aiming to set a new record high, all the operating segments will accumulate income despite the impact of external factors Net income attributable to owners of parent （Billions of yen) Equipment Leasing (+1.2 compared to FY2024) (+) Absence of one-time
Slide 9: Shareholder Returns (Dividend) Policy
Shareholder Returns (Dividend) Policy ◼ Basic policy: Provide stable, long-term returns to shareholders. ◼ Medium-Term Management Plan 2027: Maintain stable returns to shareholders while balancing with growth investment and financial base. While adopting a progressive dividend policy as our basic st
Slide 10: Topics by Operating Segment
Topics by Operating Segment
Slide 11: Results of Equipment Leasing
Results of Equipment Leasing (Billions of yen) FY2023 FY2024 FY2025 Result Result Change Forecast Change Factors in change Revenues 459.0 449.6 -9.4 Gross profit 36.8 39.1 2.3 Ordinary income (YoY) Operating income 24.4 24.8 0.4 Ordinary income 32.1 30.6 -1.5 Ownership ratio ∎ Decreased mainly due t
Slide 12: Changes in Spread
Changes in Spread Equipment Leasing’s initiatives led spread on an upward trend, despite higher funding cost due to interest rate hike Changes in spread* （on a non-consolidated basis; excl. consolidated subsidiaries and equity-method affiliates） * Spread on a contract amount basis (%) = (Lease yield
Slide 13: Performance of NTT TC Leasing (NTL)
Performance of NTT TC Leasing (NTL) Operating income increased ¥0.5 billion YoY, with segment assets up 11% and earnings power improving steadily Financial results (fiscal year ended March 31, 2025) Initiatives to expand assets (Billions of yen) Changes in segment assets FY2023 FY2024 Segment assets
Slide 14: Results of Automobility
Results of Automobility （Billions of yen) FY2023 FY2024 FY2025 Result Result Change Forecast Change Factors in changes Revenues 338.1 301.6 -36.5 Gross profit 87.6 92.3 4.7 Ordinary income (YoY) Operating income 31.8 34.1 2.3 ∎ Nippon Car Solutions (NCS) Ordinary income 32.5 35.3 2.8 Ownership ratio
Slide 15: Performance of Nippon Rent-A-Car Service (NRS)
Performance of Nippon Rent-A-Car Service (NRS) Implementing the value improvement plan and capturing inbound tourism demand to achieve ongoing growth Value improvement plan Capturing of inbound tourism demand - Resolve issues, aiming for three-way satisfaction (employee happiness, Achieved record-hi
Slide 16: Results of Specialty Financing
Results of Specialty Financing （Billions of yen) FY2025 FY2023 Result FY2024 Result Change Forecast Change Factors in changes Revenues 312.4 334.7 22.3 Gross profit 72.6 82.5 9.8 Ordinary income (YoY) Operating income 44.0 54.0 10.0 ∎ Aviation Ordinary income 47.4 60.6 13.2 Increased mainly due to A
Slide 17: Aviation Business Strategies
Aviation Business Strategies Drive further growth by capturing demand in thriving aircraft markets Portfolio overview and growth strategies Recurring revenue business (ACG) Services, etc. (GA Telesis and other) ◼ Provide operating leases and others in 90 countries GA Telesis (equity-method affiliate
Slide 18: ACG's Financial Performance I
ACG’s Financial Performance I Pre-tax income increased YoY mainly due to a significant increase in gains on the sale of aircraft, and ROA is on an upward trend Financial results (fiscal year ended December 31, 2024) ACG's Result (USD million) FY2023 FY2024 Result Result Change ∎ Major factors in cha
Slide 19: ACG's Financial Performance II
ACG’s Financial Performance II Q1 income decreased, but ACG aims for higher full-year core earnings centered around gains on sales of aircraft Financial results (three months ended March 31, 2025) ACG's Result (USD million) FY2024 FY2025 Q1 Q1 Change ∎ Major factors in change Total revenues 309 281
Slide 20: ACG's Earnings Power
ACG’s Earnings Power Gains on sales of aircraft increasing as a result of enhanced trading activities 1. Quarterly changes in operating lease revenue, interest expense and federal funds rate （USD million） Annual 1,059 total 1,006 901 879 887 1,040 300 283 285 283 8.00% 249 253 253 251 250 256 258 25
Slide 21: ACG's Financing Activities
ACG’ｓ Financing Activities Diversifying sources of capital while flexibly responding to market conditions Financing Situations • Fixed rate debt ratio (as of December 31, 2024）*1： Approx. 90% • Average financing cost*2 (as of December 31, 2024): 5.1% • Flexibly manage the ratio of fixed rate debt an
Slide 22: ACG's Portfolio
ACG’s Portfolio Diversified portfolio with a focus on liquid narrowbody aircraft in approx. 45 countries worldwide Portfolio overview (as of December 31, 2024) Geographic concentration (as of December 31, 2024) Owned, managed and committed aircraft: 496 Europe 欧州 25% Central America, (Owned: 271 M
Slide 23: Real Estate Business: Portfolio Strategy
Real Estate Business: Portfolio Strategy Promote growth through overseas projects and collaboration with TC Kobelco Real Estate, in addition to steady progress in development projects Changes in portfolio Project completion schedule Japan ‒ Many development projects underway together with prime Coll
Slide 24: Results of International Business
Results of International Business （Billions of yen） Factors in changes FY2023 FY2024 FY2025 Result Result Change Forecast Change Ordinary income (YoY) Revenues 177.6 222.9 45.3 Gross profit 54.8 64.5 9.7 ∎ Asia Operating income 16.1 17.2 1.1 Increased mainly due to gains on the sale of securities an
Slide 25: Performance of CSI Leasing (CSI)
Performance of CSI Leasing (CSI) Steady growth mainly in North America, hitting a record high Financial results (fiscal year ended December 31, 2024) Segment assets by region (USD million) - Since becoming our wholly owned subsidiary in 2016, CSI has FY2023 FY2024 increased its global bases, with it
Slide 26: CSI's Growth Strategies
CSI’s Growth Strategies Global strategies are rapidly boosting segment assets, contributing to future income Profit structure and future growth - CSI’s profits consist mainly of gains on the sale and re-leasing income of equipment at the end of the 2–3 year lease terms. - Global strategies contribut
Slide 27: CSI's Global Strategies
CSI’s Global Strategies Globally consistent services drive the expansion of business bases Further expand the network including ITAD service locations through M&A ITAD service location in Japan CSI acquired a 20% stake of EPC Japan in 2023 Approx. 40 bases in the U.S. Base in Hungary Operations by r
Slide 28: Data Center Business with the NTT Group
Data Center Business with the NTT Group Pursue expansion of data center (DC) business, utilizing strengths of the NTT DATA Group and Tokyo Century Profitability of DC business in the U.S. Collaboration with the NTT DATA Group (according to a survey by a research firm） - Collaboration in DC business
Slide 29: Results of Environmental Infrastructure
Results of Environmental Infrastructure （Billions of yen) Factors in changes FY2023 FY2024 FY2025 Result Result Change Forecast Change Revenues 59.7 60.8 1.2 Ordinary income (YoY) Gross profit 6.3 5.2 -1.1 Operating income 3.6 1.9 -1.7 ∎ Decreased, mainly due to a significant decrease in income from
Slide 30: Overseas Renewable Energy Projects
Overseas Renewable Energy Projects Collaboration with prime partners to increase high-return projects overseas North America and Europe Investment projection Main targets for higher profitability and more deals Despite different conditions for each project, the standard investment projection is the
Slide 31: FY2024 Net Income & ROA by Operating Segment
FY2024 Net Income & ROA by Operating Segment Net income increased in International Business, Specialty Financing, and Automobility Net income attributable to owners of parent ROA (Net income / Segment assets) （Billions of yen） FY2023 FY2024 FY2024 FY2024 Result Result Change Initial Forecast Achieve
Slide 32: FY2024 Ordinary Income and ROA by Operating Segment
FY2024 Ordinary Income and ROA by Operating Segment Ordinary income increased ¥15.0 billion YoY primarily due to aviation and real estate businesses in Specialty Financing Ordinary Income ROA (Ordinary income / Segment assets) （Billions of yen） FY2023 FY2024 FY2024 Result Result Change Result Change
Slide 33: Breakdown of Ordinary Income (Core earnings, gain on sales, impairment, etc.)
Breakdown of Ordinary Income (Core earnings, gain on sales, impairment, etc.) Core earnings amounted to ¥126.3 billion, up ¥14.3 billion YoY YoY Quarterly changes (Billions of yen) Impairment, bad debt expenses, and gain (losses) Core earnings Gain on sales* on valuation of operational investment se
Slide 34: Breakdown of Ordinary Income by Operating Segment
Breakdown of Ordinary Income by Operating Segment (Core earnings, gain on sales, impairment, etc.) Core earnings in Specialty Financing increased due to the growth of aviation business （Billions of yen） FY2023 FY2024 Annual Annual Change Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Total Equipment Leasing 8.8 7.3
Slide 35: Segment Assets by Operating Segment
Segment Assets by Operating Segment Increased ¥339.4 billion YoY, primarily due to increases in International Business and Automobility, in addition to the impact of exchange rates （Billions of yen） Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Change Balance of segment asset
Slide 36: Highlights of Medium-Term Management Plan 2027
Highlights of Medium-Term Management Plan 2027
Slide 37: Management Targets: Financial and Non-financial Targets
Management Targets: Financial and Non-financial Targets Net income of ¥100.0 billion, ROE of 10%, and P/B ratio above 1.0 ◼ Align financial targets with net income-based figures ◼ Recognize the current cost of equity at 10% and aim to reduce it ◼ Set non-financial targets to promote ESG initiatives
Slide 38: ROE and P/B Ratio
ROE and P/B Ratio Analysis for P/B ratio above 1.0 Maintained a high ROE and realized profit growth by Medium-Term expanding the Specialty Financing, Automobility, and International Business segments Impact of COVID-19 and Management 1.8 Russia’s invasion of Ukraine Plan 2027 Price-to-book value rat
Slide 39: Initiatives for Improving the P/B Ratio
Initiatives for Improving the P/B Ratio Aim to achieve ROE above 10% and reduce cost of shareholders’ equity by promoting TCX (TC Transformation) and eliminating information asymmetry through constructive dialogue with shareholders and investors, leading to P/B ratio above 1.0 ROE 9.0%* *ROE of FY20
Slide 40: Balance Sheet Management (Medium-Term Management Plan 2027)
Balance Sheet Management (Medium-Term Management Plan 2027) FY2022 FY2027 Increase in total assets by Total assets: approx. 6 trillion yen approx. 1 trillion yen Total assets: approx. 7trillion yen Segment Assets Liabilities and Equity （approx. ＋1.0） （approx. ＋1.0） Assets Liabilities (Trillions of y
Slide 41: Progress of Medium-Term Management Plan 2027
Progress of Medium-Term Management Plan 2027 Automobility exceeded the targets and all the segments are striving to increase core earnings Comparison of FY2024 Result and FY2027 Plan (Net income attributable to owners of parent) (Billions of yen) FY2024 FY2027 Result Plan Change Fiscal 2024 results
Slide 42: Performance of Equipment Leasing
Performance of Equipment Leasing To achieve the Medium-Term Management Plan 2027: Strengthen earnings power on a non-consolidated basis and expand joint businesses with partners, thereby increasing consolidated income FY2027 Targets ROA (based on ordinary income) 2.8% ROA (based on net income) 2.5%
Slide 43: Performance of Automobility
Performance of Automobility The Medium-Term Management Plan 2027 already achieved; next steps: Strengthen profitability in the existing business areas and accumulate prime assets FY2027 ROA (based on ordinary income) 7.2% Targets ROA (based on net income) 6.0% Having exceeded the plan in 4.6% FY2023
Slide 44: Performance of Specialty Financing
Performance of Specialty Financing To achieve the Medium-Term Management Plan 2027: Build high-quality portfolio, and improve ROA by facilitating asset turnover ROA (based on ordinary income) ROA (based on net income) FY2027 3.7% Targets 2.7% 2.5% 2.4% 1.8% 1.8% 2.1% 1.5% 1.7% -0.8% 1.1% 1.1% Measur
Slide 45: Performance of International Business
Performance of International Business To achieve the Medium-Term Management Plan 2027: Expand CSI’s assets and improve earnings power by investing in new growth areas FY2027 Targets ROA (based on ordinary income) 3.7% 3.7% ROA (based on net income) 2.2% 2.2% 2.4% 2.1% 1.5% 1.5% 1.5% 1.8% Measures to
Slide 46: Performance of Environmental Infrastructure
Performance of Environmental Infrastructure To achieve the Medium-Term Management Plan 2027: Promote investment in overseas renewable energy and other projects FY2027 Targets ROA (based on ordinary income) 2.9% ROA (based on net income) 1.4% 0.7% 1.7% 0.2% 0.7% -0.9% 0.1% 0.0% Measures to achieve th
Slide 47: Progress with Divestitures of Cross-Held Shares
Progress with Divestitures of Cross-Held Shares Cross-held shares make up a low percentage of net assets through steady reductions Changes in the amount of cross-held shares Cross-held shares have recently made up less than 5% of net assets as a result of divestitures of those which lack holding rat
Slide 48: Collaboration with Partners
Collaboration with Partners
Slide 49: Partnership with the NTT Group
Partnership with the NTT Group Collaboration started in 2005 and now all five operating segments take part to broaden the scope of collaborative ventures Equipment Leasing Automobility Specialty Financing International Business Environmental Infrastructure 2020– 2005– 2022– 2020– Real Estate Leasing
Slide 50: Partnership with ITOCHU
Partnership with ITOCHU Expanding collaboration with the ITOCHU Group in promising fields 2019 • Transfer of shares of ITOCHU CONSTRUCTION MACHINERY (now ITOCHU TC Construction machinery CONSTRUCTION MACHINERY) from ITOCHU to Tokyo Century Energy storage • Establishment of a joint venture, IBeeT, to
Slide 51: Financial Data
Financial Data
Slide 52: Statement of Income
Statement of Income （Billions of yen） FY2023 FY2024 # Result Result Change Major Factors in Changes Revenues 1 1,346.1 1,368.6 22.5 1.7% Costs 2 1,092.9 1,088.4 -4.5 -0.4% Funding cost 3 101.9 123.6 21.6 21.2% ◼ Funding cost Gross profit 4 253.2 280.2 27.0 10.7% Increased mainly due to higher costs
Slide 53: Balance Sheet
Balance Sheet （Billions of yen） # Mar. 31, 2024 Mar. 31, 2025 Change Total assets 1 6,460.9 6,862.9 401.9 6.2% Major Factors in Changes Current assets 2 2,938.9 3,076.1 137.2 4.7% Non-current assets, etc. 3 3,522.1 3,786.8 264.8 7.5% Leased assets ◼ Non-current assets, etc. 4 2,498.8 2,641.4 142.6 5
Slide 54: Interest-Bearing Debt
Interest-Bearing Debt Balance of Interest-Bearing Debt Financing Cost Ratio*1, 2 (Billions of yen) （Billions of yen） # Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Change Funding cost 2.76% Interest-bearing debt 1 4,514.7 4,749.0 4,912.6 163.6 3.4% Japanese yen 2 2,628.6 2,574.2 2,662.9 88.7 3.4% Inter
Slide 55: Segment Assets and Transaction Volume in Automobility
Segment Assets and Transaction Volume in Automobility Segment assets increased ¥21.8 billion compared to the previous fiscal year-end （Billions of yen） Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Change Balance of segment assets 629.5 611.8 611.6 479.0 500.8 21.8 Nippon Car
Slide 56: Quarterly Results of Subsidiaries and Affiliate in Automobility
Quarterly Results of Subsidiaries and Affiliate in Automobility NCS and NRS performed well and income hit a record high FY 2023 FY 2024 Annual Annual Change Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Total ( YoY ) NCS 54.3 50.9 49.7 48.2 203.0 55.7 53.2 50.8 49.5 209.3 6.3 Revenues *1 22.9 20.0 23.8 27.0 93.8 24
Slide 57: Segment Assets in Specialty Financing
Segment Assets in Specialty Financing Segment assets increased ¥147.7 billion compared to the previous fiscal year-end mainly due to the impact of exchange rates （Billions of yen） Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Change Balance of segment assets 2,034.4 2,152.5 2
Slide 58: Segment Assets in International Business
Segment Assets in International Business Segment assets increased ¥154.5 billion compared to the previous fiscal year-end due to increases in the U.S. and Europe, in addition to the impact of exchange rates （Billions of yen） Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Chang
Slide 59: Forward-looking statements and contact information
Any statements in this document, other than those of historical facts, are forward-looking statements about the future performance of Tokyo Century Corporation and its Group companies, which are based on management’s assumptions and beliefs in light of information currently available, and involve ri