Tokyo Century Corporation · TSE:8439
Tokyo Century — Q1 FY2025 Earnings Presentation
53 slides from Tokyo Century's earnings presentation, 2025
Slide 1: IR Presentation for Q1 FY2025
IR Presentation for Q1 FY2025
Slide 2: Contents
Contents Results for Q1 FY2025 p. 3 Q1 Topics p. 10 Appendix 1 Topics by Operating Segment p. 16 Appendix 2 Highlights of Medium-Term Management Plan 2027 p. 36 Appendix 3 Collaboration with Partners p. 43 Appendix 4 Financial Data p. 46 All Rights Reserved, Copyright © Tokyo Century Corporation
Slide 3: Results for Q1 FY2025
Results for Q1 FY2025
Slide 4: Executive Summary
Executive Summary Net income: ¥22.1 billion (down ¥0.9 billion or 4% YoY) ROE: 8.8％ Q1 Results Progress: On track to meet the annual forecast of ¥93.0 billion Major Factors behind Net Income Net income decreased due to the absence of ACG’s one-time gains of ¥3.7 billion (¥4.8 billion before tax) r
Slide 5: Financial Highlights
Financial Highlights While Q1 income decreased YoY, progress remained on track with the annual forecast （Billions of yen） FY2024 FY2025 FY2025 Q1 Q1 YoY Change Forecast Progress Ordinary income 38.2 37.3 -0.9 -2.4% Net income (loss) attributable to owners of parent 23.0 22.1 -0.9 -4.0% 93.0 23.7% EP
Slide 6: Results by Operating Segment
Results by Operating Segment Solid performance in all segments, except Specialty Financing with lower income mainly due to the absence of ACG’s one-time gains recorded in the same period last year Net Income Attributable to Owners of Parent （Billions of yen） FY2024 FY2025 FY2025 Q1 Q1 YoY Major Fact
Slide 7: Breakdown of Ordinary Income (Core Earnings, Gains on Sales, Impairment, Etc.)
Breakdown of Ordinary Income (Core Earnings, Gains on Sales, Impairment, Etc.) Core earnings remained strong, except the absence of ACG’s one-time gains of ¥4.8 billion (collection of lease payments, etc.) recorded in the same period last year (Billions of yen) YoY Quarterly Results Impairment, bad
Slide 8: Breakdown of Ordinary Income by Operating Segment
Breakdown of Ordinary Income by Operating Segment (Core Earnings, Gains on Sales, Impairment, Etc.) International Business realized gains on sales, and Specialty Financing ensured those comparable to the same period last year （Billions of yen） FY2024 FY2025 YoY Annual Q1 Q2 Q3 Q4 Q1 Change Total Equ
Slide 9: Segment Assets by Operating Segment
Segment Assets by Operating Segment Decreased ¥89.8 billion from the previous fiscal year end, due to the impact of exchange rates mainly in Specialty Financing and International Business （Billions of yen） Change from Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Jun. 30, 2025 Prior FYE Ba
Slide 10: Q1 Topics
Q1 Topics
Slide 11: Truck Leasing Business in Partnership with Isuzu Motors in Australia
Truck Leasing Business in Partnership with Isuzu Motors in Australia Developing vehicle life cycle management services in addition to financial functions Business Description Future Strategies Joint Venture (Plan to Commence Operations in October 2026) Ordinary Services (Example) Car Car Parts Re-le
Slide 12: CSI's M&A Strategies
CSI’s M&A Strategies Enhance IT equipment leasing and diversify FMV lease products for further growth M&A Targets M&A Examples CSI targets products suitable for FMV lease*, leveraging CSI’s CSI Leasing Brazil acquired Somov Rental Ltda., a forklift rental strengths while enhancing IT equipment leasi
Slide 13: 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 14: Reform Projects in Progress
Reform Projects in Progress Implementation of Reform Projects for Enhancement of Management Foundation • Led by our president, the reform projects for enhancement of management foundation are now underway. • To improve corporate value, these projects will implement reforms on themes such as restruct
Slide 15: Insurance Settlements Related to Russia Exposure
Insurance Settlements Related to Russia Exposure Added on August 14 Status of Insurance Settlements 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 set
Slide 16: Topics by Operating Segment
Appendix 1 Topics by Operating Segment
Slide 17: Results of Equipment Leasing
Results of Equipment Leasing (Billions of yen) FY2024 FY2025 FY2025 Major Factors behind Changes Q1 Q1 YoY Forecast Gap Revenues 113.8 117.5 3.7 Ordinary Income (YoY) Gross profit 9.1 10.7 1.6 ∎ Increased mainly due to higher profits (higher gains on sales) in joint Operating income 5.7 7.2 1.5 inve
Slide 18: Performance of NTT TC Leasing (NTL)
Performance of NTT TC Leasing (NTL) NTL’s operating income remained flat YoY, while TC’s equity in NTL’s earnings decreased mainly due to exchange rates Financial Results for Q1 FY2025 Expanding Segment Assets (Billions of yen) Changes in Segment Assets FY2024 FY2025 Segment assets, a source of inco
Slide 19: Results of Automobility
Results of Automobility (Billions of yen) FY2024 FY2025 FY2025 Q1 Q1 Major Factors behind Changes YoY Forecast Gap Revenues 79.6 82.9 3.3 Gross profit 26.0 27.0 1.0 Ordinary Income (YoY) Operating income 12.4 12.6 0.3 Ordinary income 12.5 12.8 0.3 Ownership ratio ∎ Nippon Car Solutions (NCS) NCS 7.5
Slide 20: Results of Specialty Financing
Results of Specialty Financing (Billions of yen) FY2024 FY2025 FY2025 Major Factors behind Changes Q1 Q1 YoY Forecast Gap Revenues 77.7 80.8 3.1 Ordinary Income (YoY) Gross profit 22.0 19.1 -3.0 Operating income 15.2 11.5 -3.7 ∎ Aviation Ordinary income 16.3 12.3 -4.0 ACG’s ordinary income decreased
Slide 21: ACG's Financial Performance I
ACG’s Financial Performance I Q1 income decline, but targeting full-year increase in core earnings mainly through aircraft sales Financial Results (Three Months Ended March 31, 2025) ACG's Result (USD million) FY2024 FY2025 Q1 Q1 YoY Change ∎ Major Factors behind Changes Total revenues 309 281 -28 -
Slide 22: ACG's Financial Performance II
ACG’s Financial Performance II Updated on August 14 Significant increase in pre-tax income due to insurance settlements related to Russia exposure Financial Results (Six Months Ended June 30, 2025) ACG's Result (USD million) ∎ Major Factors behind Changes FY2024 FY2025 Q1-2 Q1-2 Pre-tax income signi
Slide 23: ACG's Earnings Power
ACG’s Earnings Power Updated on August 14 Gains on aircraft sales showing a positive trend compared to previous fiscal years due to 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
Slide 24: 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 March 31, 2025）*1： Approx. 90% • Average financing cost*2 (as of March 31, 2025): 4.7% • Strategies: Flexibly manage the ratio of fixed rate d
Slide 25: ACG's Portfolio
ACG’s Portfolio Diversified portfolio with a focus on liquid narrowbody aircraft in approx. 45 countries worldwide Portfolio Overview (as of March 31, 2025) Geographic Concentration (as of March 31, 2025) Owned, managed and committed aircraft: 483 欧州 Europe 28% (Owned: 280; Managed: 47; Committed
Slide 26: 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 27: Principal Investment
Principal Investment Driving principal investment mainly through collaboration with the Advantage Partners (AP) Group Steady increases in investments for further expansion in the medium to long term Changes in Segment Assets*1 *1 Excl. investments in AP itself Growth Support for Portfolio Companies
Slide 28: Results of International Business
Results of International Business Major Factors behind Changes (Billions of yen) FY2024 FY2025 FY2025 Q1 Q1 Ordinary Income (YoY) YoY Forecast Gap Revenues 48.1 53.5 5.4 ∎ Increased mainly due to gains on sales of operational Gross profit 14.5 18.6 4.2 investment securities, despite CSI’s lower inco
Slide 29: Performance of CSI Leasing (CSI)
Performance of CSI Leasing (CSI) Income decreased due to lower secondary earnings, despite higher transaction volume, up 9% YoY Financial Results (Three Months Ended March 31, 2025) Segment Assets by Region (USD million) - Since becoming our wholly owned subsidiary in 2016, CSI has FY2024 FY2025 Q1
Slide 30: 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 31: Results of Environmental Infrastructure
Results of Environmental Infrastructure (Billions of yen) FY2024 FY2025 FY2025 Major Factors behind Changes Q1 Q1 YoY Forecast Gap Revenues 15.3 13.2 -2.2 Ordinary Income (YoY) Gross profit 1.8 2.4 0.6 Operating income 1.1 1.6 0.6 ∎ Increased mainly due to biomass co-firing power generation Ordinary
Slide 32: Q1 FY2025 Net Income & ROA by Operating Segment
Q1 FY2025 Net Income & ROA by Operating Segment Significant growth in International Business, along with higher income in Equipment Leasing, Automobility, and Environmental Infrastructure Net Income Attributable to Owners of Parent ROA (Net Income / Segment Assets) （Billions of yen） FY2024 FY2025 FY
Slide 33: Q1 FY2025 Ordinary Income and ROA by Operating Segment
Q1 FY2025 Ordinary Income and ROA by Operating Segment Ordinary income decreased ¥0.9 billion YoY primarily due to lower income in Specialty Financing Ordinary Income ROA (Ordinary Income / Segment Assets) （Billions of yen） FY2024 FY2025 FY2025 Q1 Q1 YoY Q1 YoY Equipment Leasing 8.0 8.6 0.6 2.7% 0.1
Slide 34: FY2025 Performance Forecast (YoY Changes)
FY2025 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 recorded due
Slide 35: 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 36: Highlights of Medium-Term Management Plan 2027
Appendix 2 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: 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 39: 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 40: 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 41: 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 42: 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 43: Collaboration with Partners
Appendix 3 Collaboration with Partners
Slide 44: 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 45: 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 46: Financial Data
Appendix 4 Financial Data
Slide 47: Statement of Income
Statement of Income （Billions of yen） FY2024 FY2025 # Q1 Q1 YoY Change Major Factors behind Changes Revenues 1 334.3 347.6 13.3 4.0% Costs 2 262.1 270.4 8.3 3.2% Funding cost Funding cost 3 29.4 30.7 1.3 4.5% Increased mainly due to higher costs of financing in yen Gross profit 4 72.1 77.2 5.0 7.0
Slide 48: Balance Sheet
Balance Sheet （Billions of yen） # Mar. 31, 2025 Jun. 30, 2025 Change Major Factors behind Changes Total assets 1 6,862.9 6,787.0 -75.9 -1.1% Current assets 2 3,076.1 3,011.5 -64.5 -2.1% Non-current assets, etc. Non-current assets, etc. 3 3,786.8 3,775.4 -11.4 -0.3% Leased assets: Decreased mainly
Slide 49: Interest-Bearing Debt
Interest-Bearing Debt Balance of Interest-Bearing Debt Financing Cost Ratio*1, 2 (Billions of yen) Funding cost （Billions of yen） 2.70% Interest expense 2.61% # Mar. 31, 2024 Mar. 31, 2025 Jun. 30, 2025 Change Interest-bearing debt 1 4,749.0 4,912.6 4,987.2 74.6 1.5% Financing cost ratio 33.4 Japane
Slide 50: Segment Assets and Transaction Volume in Automobility
Segment Assets and Transaction Volume in Automobility Segment assets increased ¥2.9 billion compared to the previous fiscal year end （Billions of yen） Change from Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Jun. 30, 2025 Prior FYE Balance of segment assets 611.8 611.6 479.0 500.8 503.7 2
Slide 51: Quarterly Results of Subsidiaries and Affiliate in Automobility
Quarterly Results of Subsidiaries and Affiliate in Automobility NRS performed strongly, resulting in record income for Q1 FY 2024 FY 2025 Annual YoY Change from Q1 Q2 Q3 Q4 Q1 Prior FYE Total Change Revenues NCS 55.7 53.2 50.8 49.5 209.3 57.8 2.1 *1 (Billions of NRS 24.2 21.9 24.3 23.3 93.8 25.3 1.1
Slide 52: Segment Assets in Specialty Financing
Segment Assets in Specialty Financing Segment assets decreased ¥43.2 billion from the previous fiscal year end mainly due to the impact of exchange rates （Billions of yen） Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Jun. 30, 2025 Change from Prior FYE Balance of segment assets 2,152.5 2,
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