Tokyo Century Corporation · TSE:8439
Tokyo Century — Q2 FY2025 Earnings Presentation
53 slides from Tokyo Century's earnings presentation, 2025
Slide 1: IR Presentation for Q2 FY2025
IR Presentation for Q2 FY2025
Slide 2: Contents
Contents Results for Q2 FY2025 p. 3 Topics p. 10 Appendix 1 Topics by Operating Segment p. 15 Appendix 2 Highlights of Medium-Term Management Plan 2027 p. 35 Appendix 3 Tokyo Century’s Strengths and Partnerships p. 42 All Rights Reserved, Copyright © Tokyo Century Corporation
Slide 3: Results for Q2 FY2025
Results for Q2 FY2025
Slide 4: Executive Summary
Executive Summary ✓ Net income: ¥92.8 billion (up ¥49.7 billion or 115% YoY) ROE: 18.1％ Q2 Results ✓ ¥51.9 billion insurance settlement proceeds (after-tax) recorded ✓ Net income, excluding extraordinary income/losses, up ¥8.0 billion YoY ✓ Revising annual forecast upward due to higher insurance set
Slide 5: Financial Highlights
Financial Highlights Net income increased significantly due to insurance settlement proceeds, and earnings power, excluding extraordinary income/losses, grew steadily （Billions of yen） FY2025 Initial Forecast *1 FY2024 FY2025 Announced on Q1-2 Q1-2 YoY Change Progress May 14, 2025 Ordinary income 63
Slide 6: Upward Revision of FY2025 Forecast
Upward Revision of FY2025 Forecast Revising annual forecast for net income and dividends upward ✓ Net Income: ¥100.0 billion （up ¥7.0 billion） Annual dividend: ¥72 （up ¥4) Factors behind Upward Revision: - Higher insurance settlement proceeds than initially expected - Solid performance, etc. (Billio
Slide 7: YoY Changes in Net Income
YoY Changes in Net Income Steadily growing earnings power ✓ Earnings power, excluding one-time factors, has grown in all the operating segments, with net income up ¥8.0 billion. Insurance settlement Net Income proceeds 1,000 +51.9 92.8 Net income excl. one-time factors 900 (extraordinary income/loss
Slide 8: Results by Operating Segment
Results by Operating Segment Significant income increase in Specialty Financing, mainly due to insurance settlement proceeds, and solid performance in all other operating segments, excluding one-time factors Net Income Attributable to Owners of Parent （Billions of yen） FY2024 FY2025 FY2025 Q1-2 Q1-2
Slide 9: Segment Assets by Operating Segment
Segment Assets by Operating Segment Decreased ¥88.3 billion from the previous fiscal year end due to the impact of foreign exchange, primarily in Specialty Financing and International Business （Billions of yen） Change from Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Sep. 30, 2025 Prior F
Slide 10: Topics
Topics
Slide 11: Key Topics
Key Topics Steady implementation of growth investments to enhance business portfolio Key Investments （H1 FY2025） Making Advantage Partners as an equity-method affiliate Partner ➢ Strengthening collaboration with Advantage Partners to expand investments in companies CSI’s acquisition of forklift
Slide 12: Advantage Partners as an Equity-Method Affiliate
Advantage Partners as an Equity-Method Affiliate Targeting significant expansion of investments in companies, with the Advantage Partners (AP) Group as a core player Vision for Enhanced Partnership with AP Segment Asset Changes and Outlook*1 *1 Excl. investments in AP itself Lead the way in resolvin
Slide 13: Insurance Settlement Proceeds Related to Russia Exposure
Insurance Settlement Proceeds Related to Russia Exposure Received Insurance Settlement Proceeds Related to ACG’s Exposure to Russian Airlines Breakdown of Insurance Settlement Proceeds*1 *1: All dollar amounts are in U.S. dollars. ✓ With the progress in the settlement negotiations, insurance settlem
Slide 14: Update on Reform Projects Led by the President
Update on Reform Projects Led by the President Reform projects underway to achieve our 10-year vision Corporate transformation along a consistent story based on the Management Philosophy, aiming to improve corporate value ◼Vision formulation and embedding ◼Shift to corporate culture of encouraging e
Slide 15: Topics by Operating Segment
Appendix 1 Topics by Operating Segment
Slide 16: Breakdown of Ordinary Income by Operating Segment
Breakdown of Ordinary Income by Operating Segment (Core Earnings, Gains on Sales, Impairment, Etc.) Higher core earnings driven by Specialty Financing and Environmental Infrastructure, and higher gains on sales in International Business （Billions of yen） Ordinary Income FY2024 FY2025 YoY Total Annua
Slide 17: Results of Equipment Leasing
Results of Equipment Leasing (Billions of yen) FY2024 FY2025 FY2025 Major Factors behind Changes Q1-2 Q1-2 Initial YoY Forecast Gap Revenues 224.5 229.5 5.0 Ordinary Income (YoY) Gross profit 19.0 19.9 1.0 ∎ Increased mainly by offsetting higher funding costs with increases in Operating income 12.0
Slide 18: Changes in Spread
Changes in Spread Equipment Leasing’s initiatives led spread on an upward trend, despite higher funding cost due to yen 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 y
Slide 19: Performance of NTT TC Leasing (NTL)
Performance of NTT TC Leasing (NTL) Solid increase in NTL’s operating income, despite higher funding costs Financial Results for Q2 FY2025 Focus Areas (Billions of yen) NTL aims to increase quality operational assets primarily in the three FY2024 FY2025 pillars of business strategy. Q1-2 Q1-2 YoY Ch
Slide 20: Results of Automobility
Results of Automobility (Billions of yen) FY2024 FY2025 FY2025 Major Factors behind Changes Initial Q1-2 Q1-2 YoY Gap Forecast Revenues 154.5 160.1 5.6 Ordinary Income (YoY) Gross profit 49.3 51.2 1.9 Operating income 21.3 21.9 0.6 ∎ Nippon Car Solutions (NCS) Ordinary income 21.6 22.2 0.6 Ownership
Slide 21: Results of Specialty Financing
Results of Specialty Financing (Billions of yen) FY2024 FY2025 FY2025 Major Factors behind Changes Initial Q1-2 Q1-2 YoY Forecast Gap Revenues 150.4 155.2 4.8 Ordinary Income (YoY) Gross profit 33.8 41.3 7.6 Operating income 19.9 27.1 7.2 ∎ Aviation Ordinary income 23.7 28.2 4.5 ACG: Increased mainl
Slide 22: ACG’s Financial Performance
ACG’s Financial Performance Updated on November 13 Significant increase in pre-tax income due to insurance settlements related to Russia exposure Financial Results (Nine Months Ended September 30, 2025) ACG's Result (USD million) FY2024 FY2025 ∎ Major Factors behind Changes Q1-3 Q1-3 YoY Change Pre-
Slide 23: ACG’s Earnings Power
ACG’s Earnings Power Updated on November 13 Enhanced trading driving a positive trend in gains on aircraft sales compared to previous years 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 28
Slide 24: Reference: ACG’s Portfolio
Reference: ACG’s Portfolio Diversified portfolio with a focus on liquid narrowbody aircraft in approx. 50 countries worldwide Portfolio Overview (as of June 30, 2025) Financing Situations (as of June 30, 2025) Average financing cost* : 4.8% Owned, managed and committed aircraft: 490 (Owned: 279;
Slide 25: Real Estate Business: Portfolio Strategy
Real Estate Business: Portfolio Strategy Expand collaboration with partners and promote asset turnover to enhance earnings power Changes in Portfolio Project Completion Schedule Japan ‒ Many development projects underway together with prime Collaboration with prime partners underway for large-scale
Slide 26: Results of International Business
Results of International Business (Billions of yen) Major Factors behind Changes FY2024 FY2025 FY2025 Q1-2 Q1-2 Initial YoY Forecast Gap Ordinary Income (YoY) Revenues 104.7 109.2 4.6 Gross profit 30.1 36.0 5.9 ∎ Increased mainly due to higher gains on sales of operational Operating income 8.1 11.7
Slide 27: Performance of CSI Leasing (CSI)
Performance of CSI Leasing (CSI) YoY income decrease due to the absence of large-scale contracts, but solid increase in segment assets contributing to future income Financial Results (Six Months Ended June 30, 2025) Segment Assets by Region (USD million) - Since becoming our wholly owned subsidiary
Slide 28: CSI’s M&A Strategies
CSI’s M&A Strategies Entry into the GSE market, following the forklift market in Q1, accelerating the diversification of FMV lease products for future growth M&A Examples M&A Targets In August 2025, CSI acquired Aeroservicios USA, Inc., a company CSI targets products suitable for FMV lease*, leverag
Slide 29: Data Center Business with the NTT Group
Data Center Business with the NTT Group Expanding 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 started in
Slide 30: Results of Environmental Infrastructure
Results of Environmental Infrastructure FY2025 FY2024 Q1-2 FY2025 Q1-2 Initial Major Factors behind Changes YoY Forecast Gap Revenues 32.3 39.9 7.6 Gross profit 4.4 8.0 3.6 Ordinary Income (YoY) Operating income 2.8 6.3 3.5 Ordinary income 2.8 6.3 3.5 ∎ Increased mainly due to higher gains on sales
Slide 31: Storage Battery Business Strategies in Japan
Storage Battery Business Strategies in Japan Demand for storage batteries expanding due to increasing renewable energy supply Overview of Storage Battery Business Plan to maximize revenues by contributing to stabilizing the power grid and preventing and reducing the curtailment of output from solar
Slide 32: Q2 FY2025 Net Income & ROA by Operating Segment
Q2 FY2025 Net Income & ROA by Operating Segment Solid performance in all operating segments, except Automobility, due to extraordinary losses Net Income Attributable to Owners of Parent ROA (Net Income / Segment Assets) （Billions of yen） FY2024 FY2025 FY2025 FY2025 Q1-2 Q1-2 YoY Forecast Progress Q1
Slide 33: FY2025 Initial Performance Forecast (YoY Changes)
FY2025 Initial Performance Forecast （YoY Changes) Profit growth and insurance settlement proceeds expected, but risk buffer factored in Breakdown of the ¥7.7 Billion Increase in Net Income Attributable to Owners of Parent (+) Insurance settlement proceeds Approximately ¥40.0 billion is to be recorde
Slide 34: FY2025 Initial Performance Forecast by Operating Segment
FY2025 Initial 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
Slide 35: Highlights of Medium-Term Management Plan 2027
Appendix 2 Highlights of Medium-Term Management Plan 2027
Slide 36: 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 37: 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 38: 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 39: 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, Management and International Business segments Plan 2027 Price-to-book value ratio (P/B ratio) Impact of COVID-19 and maintained above 1
Slide 40: 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 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 Gap Fiscal 2024 results and
Slide 42: Tokyo Century’s Strengths and Partnerships
Appendix 3 Tokyo Century’s Strengths and Partnerships
Slide 43: Core Competencies
Tokyo Century Group’s Vision and Core Competencies Becoming “a company driving solutions to global social challenges with an entrepreneurial spirit” by leveraging our unique strengths Identification of 2 Partnership (Track Record) 1 Asset Value (Expertise) ◼Robust customer base ◼Expansion of busines
Slide 44: Business Models (Asset Value)
Business Models (Asset Value) Business Models Built on Tokyo Century’s Unique Strengths (1) Value Creation Driven by Discerning Eye for Asset Value Businesses Focused on Asset Value 1 Sales Activities Provision of ICT equipment, automobiles, aircraft, ships, real estate, trucks, solar panels, etc. I
Slide 45: Business Models (Partnership)
Business Models (Partnership) Business Models Built on Tokyo Century’s Unique Strengths (2) Value Creation Driven by Excellence in Earning Trust of Customers Partnership Businesses 1 Creation of Collaborative Projects Together with Partners Advancement of negotiations for developing collaborative pr
Slide 46: 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 47: Partnership with ITOCHU
Partnership with ITOCHU Collaboration with the ITOCHU Group expanding 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 48: Examples of Collaboration with Partners
Examples of Collaboration with Partners Shareholders Segment Investee Company Main Businesses TC Partners FLCS Co., Ltd. 80% Fujitsu Limited: 20％ IT equipment leasing IHI Finance Support Corporation 66.5% IHI Corporation： 33.5% General leasing and finance Sale of electricity generated TC Tsukishima
Slide 49: Financial Data
Appendix 4 Financial Data In addition to this document, financial information updated in DATA BOOK (Excel format) is disclosed in the IR Library on the Company’s website quarterly. https://www.tokyocentury.co.jp/en/ir/library/2025.html
Slide 50: Statement of Income
Statement of Income （Billions of yen） FY2024 FY2025 Major Factors behind Changes # Q1-2 Q1-2 YoY Change Revenues 1 665.9 693.3 27.4 4.1% ◼ Gross profit Costs 2 531.4 537.8 6.4 1.2% Increased mainly driven by Specialty Financing and Funding cost 3 60.7 60.2 -0.5 -0.8% International Business Gross pro
Slide 51: Balance Sheet
Balance Sheet （Billions of yen） Major Factors behind Changes # Mar. 31, 2025 Sep. 30, 2025 Change Total assets 1 6,862.9 6,848.8 -14.1 -0.2% ◼ Non-current assets, etc. Current assets 2 3,076.1 3,091.0 14.9 0.5% Leased assets: Decreased mainly due to exchange rates in Non-current assets, etc. 3 3,786
Slide 52: Interest-Bearing Debt
Interest-Bearing Debt Balance of Interest-Bearing Debt Financing Cost Ratio*1, 2 (Billions of yen) （Billions of yen） Funding cost 65.4 65.6 # Mar. 31, 2024 Mar. 31, 2025 Sep. 30, 2025 Interest expense Change Financing cost ratio 2.66% 2.66% Interest-bearing debt 1 4,749.0 4,912.6 4,939.0 26.5 0.5% J
Slide 53: 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