Fuyo General Lease : Notice Concerning Updated Medium-term Management Plan “Fuyo Shared Value 2026”

Medium-term Management Plan

＜Update＞

Fuyo Shared Value 2026

Achieving sustainable growth by resolving social issues through human growth and dialog while at the same time delivering economic value

Fuyo General Lease Co., Ltd. Securities code: 8424

March 28,2025

１．Medium-term Management Plan

Review of the First Three YearsP3

２．Update on Medium-term Management Plan

P8

３．Initiatives for Enhancing Corporate ValueP13

Earnings forecasts and other forward-looking statements provided in this material are based on the information currently available to the Company and are subject to risks and uncertainties. Actual results may differ materially from the forecasts presented herein.

2

Medium-term Management Plan Review of the First Three Years

Changes in results for our four financial goals

• ◼ Our four financial goals (ordinary profit, ROA (ratio of ordinary profit to operating assets), shareholders' equity ratio, and ROE) are making steady progress towards final-year targets off the Medium-term Management Plan

• ◼ Our forecasts for ordinary profit in the fiscal year ending March 31, 2025 is ¥66.0 billion, at the upper limit of the interim target value for the medium-term management plan of ¥64.0-66.0 billion

Changes in Financial targets

900 800

2.5% （¥100 million）

600

500

200

2.6% 2.4%

2.2%

2.0%

1.8%

1.6%

1.4%

1.2%

1.0%

ROE

Shareholders' equity ratio

10.6% 11.3%

9.4% ＊1 13.8%＊1

10% or more

13~15%

（Operating assets）（¥2.6 trillion）

（¥ 3.0 trillion）

（¥3 trillion level）

＊1

＊1 FY2024 forecast

Results of CSV management

• ◼ Non-financial goals were set as indicators for practicing CSV. Overall, steady progress was made toward our targets for the final year of the medium-term management plan by steadily practicing CSV.

• ◼ Initiatives to finance decarbonization promotion and save our customers' working hours led to expanding the customer base and capturing new sales opportunities. Fuyo Circular Economy Lease® and the region-specific healthcare fund launched jointly with other financial institutions.

  Our results are substantial, both in quality and quantity.

• ◼ External ratings on these CSV practices that we have built up are steadily improving (see next page).

Major CSV management results

• ◼ Rating agencies upgraded issuer ratings in recognition of improved earning power, financial health and other factors.

• ◼ We aim to further improve ratings by consistently executing the current Medium-term Management Plan.

Changes in Fuyo's issuer ratings

Japan Credit Rating

Agency, Ltd.

（JCR）

AA-/ Stable

Rating and Investment

Information, Inc.

（R&I）

A+/ Stable

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020

FY2021

FY2022

FY2023

Changes in the management environment

• ◼ The growth of global economy has remained resilient and business conditions in Japan have continued their moderate recovery

• ◼ Society is increasingly demanding sustainability management that addresses climate change, investments in human capital, and other issues

• ◼ Return to "a world with interest rates" following shift in monetary policy by the Bank of Japan (discontinuance of

  YCC / negative interest rates, etc.)

While we are not being forced to make fundamental shifts in our management strategy in order to continue practicing CSV management, the environment is changing more rapidly than we foresaw at the time it was formulated

At the time of plan formulation

As of 2025

Post-COVID-19 pandemic business environment characterized by extreme lack of visibility and high level of uncertainty

Requirement to respond to accelerating changes in the management environment, as well as develop the business in a way that takes various resources and geopolitical risks, etc. into account

⚫ Overarching trend toward decarbonized society ⚫ Structural changes in society driven by declining birth rate

⚫ Instilling/expanding sustainability management ⚫ Rising wages driven by structural labor shortages

Update on Medium-term Management Plan

• • Despite revising business strategy based on the recent management environment, no changes have been made to financial goals

• • In terms of non-financial goals, targets related to ECs/FCVs have been revised based on the environment for penetration of EVs

  (We have shifted from a "stock" target: percentage of company owned vehicles that are either EVs or FCVs - to a "flow"

  target: percentage of new contracts that are either EVs or FCVs)

Management Goals

Financial goals

＊1 Full-year forecasts for the fiscal year ending March 31, 2025

The initial forecast for the interim (FY2024) target for ordinary profit was ¥64.0-66.0 billion

＊2 Expected full-year results for the fiscal year ending March 31, 2025 (provisional)

Non-financial goals (excerpts)

Environment

Decarbonized society

Renewable energy power generation capacity*3

Society and people

Circular society

Investment in human resources

Percentage of new contracts that are either EVs or FCVs (percentage at Fuyo Auto Lease/YAMATO LEASE)

Percentage of returned PCs that are reused or recycled

Percentage of materials/chemicals contained in waste plastics (from returned PCs) that are recycled

Work hours saved by our customers

(Creation of new value creation time through BPO/ICT services)

Human resource development-related expenses (non-consolidated)

5%

＊3 Applicable to investments made in the Renewable Energy Generation Business, project financing, etc. (The power generation capacity is calculated based on the ownership ratio and share.)

• • Steady growth in profits expected in the Transformation Zone (Rising/Accelerating) as a whole

• • The Growing Performance as our core business is expected to perform steadily and exceed initial forecasts

• • Based on changes in the economic environment, etc., we have revised individual strategies and profit plans for each business domain

*The revised forecasts for ordinary profit by business domain FY2026 are scheduled to be disclosed at the time of the full-year results briefing for FY2024

Working to build "mountain ranges with multiple peaks" revenue structure, driven by the diversification of business caused by shifts in management resources

Breakdown of ordinary profit

Rising Transformation (Mobility/Logistics, Circular Economy)

Accelerating Transformation (Energy & Environment, BPO/ICT, Medical & Social Welfare)

Growing Performance (Real Estate, Aircraft)

FY2021 (results)