The firm of innovative financing
Action to Implement Management that is Conscious of Cost of Capital and Stock Price(Updated on December 16, 2025)
TSE Standard Market Stock Code: 8789
https://www.fgi.co.jp/en/
FinTech, in katakana script and English letters (registration 5113746), FinTech Global, in English letters (registration 5811521) and in katakana script (registration 5811522), and FGI (registration 5113748) are registered trademarks of FinTech Global Incorporated.
Contents
Introduction 2
Analysis of Current Situation
Return on Capital, highlighting ROE as capital return metric 3 Cost of capital 5
Market valuation 6
Activities and Targets
ROE target and initiatives 11
Reducing cost of shareholders' equity 13
Introduction
FGI has maintained a policy to update the content of "Action to Implement Management that is Conscious of Cost of Capital and Stock Price," initially posted to its corporate website on November 8, 2023, every year.
Accordingly, the Company recently reassessed the current status of cost of capital and return on capital, with an emphasis on ROE and ROIC, and put together an improvement plan based on the results of analysis, which is described in these materials.
These materials, including past measures, are posted to our corporate website.
https://www.fgi.co.jp/en/ir/library/action/
Analysis of Current Situation - Return on Capital (highlighting ROE as capital return metric)
Changes in ROE
Between fiscal 2016 and fiscal 2020, ROE remained in negative territory due to costs associated with preparations for the opening of Metsä as well as losses caused by pandemic-related factors.
From fiscal 2021, ROE improved considerably, paralleling particularly favorable demand for private
equity investment associated with business succession projects and for arrangement transaction services.
▼ Truck operating lease business begins
In fiscal 2025, ended September 30, 2025, net profit margin rose along with financial leverage. ROE hit 20% target.
▼ Investment into projects
to support business
succession begins
▼ Aircraft leasing business begins
21.6%
20.8%▼ Metsä construction starts
▼ Spread of COVID-19
▼ Moominvalley Park opens | ▼ Temporary closure of Moominvalley Park |
18.8%
3.4%
2.1%
FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
- 13.5%
- 19.7%
- 24.6%
- 21.5%
- 17.3%
Analysis of Current Situation - Return on Capital (highlighting ROE as capital return metric)
ROE breakdown
Fiscal 2023 marked start of major improvement in net profit margin, driven by high ROE.
Fiscal 2025 (Year-on-year analysis)
Net profit margin Up, reflecting decrease in revenues from exit activity on asset investments with high cost ratios against increase in revenues from highly profitable private equity investment and truck operating lease business.
Total asset turnover Down, as total assets jumped 30.6%, paralleling increase in assets for aircraft leasing business and acquisition of project to develop solar power plants.
Financial leverage Up, due to increase in balance of loans from financial institutions to acquire assets for lease.
【Profitability】 【Asset efficiency】
【Financial leverage】
ROE =
Net income
Revenues
×
Revenues
Total assets＊
Total asset turnover
×
Net profit margin
Total assets＊
Shareholders′equity＊
Financial leverage ratio
FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
ROE -21.5% -17.3% 2.1% 2.7% 21.6% 18.8% 20.8%
Net profit margin -17.3% -17.3% 1.6% 1.9% 17.2% 12.1% 14.7%
Total asset turnover 0.56 times 0.38 times 0.49 times 0.54 times 0.50 times 0.69 times 0.61 times
Financial leverage 2.24 times 2.60 times 2.63 times 2.66 times 2.49 times 2.23 times 2.34 times
*Average of amount
at beginning and end of fiscal year