Financial Results for the Fiscal Year Ended March 31, 2025 (FY2025)
April 25, 2025
NEC Capital Solutions Limited
Note: This document has been translated from a part of the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Financial Results for the Fiscal YearEnded March 31, 2025 (FY2025)
1. Financial Results for FY2025
1) Highlights of Financial Results
2) Business Environment
3) Financial Summary
4) Revenues by Business Segment
5) Business Results by Business Segment
6) Leasing Business
7) Finance Business
8) Investment Business
9) Operating Asset Balances
10) Procuring Funds
11) Credit Costs
2. Forecasts for FY2026
3. Progress of Medium-term Plan 2025
1. Financial Results FY2025
1) Highlights of Financial Results
Business Environment
Total leasing contracts in the industry overall rose 10.7% Y/Y.
We need to continue to monitor future trends in the financing environment and bankruptcies.
Results in Key Business Units
In the Leasing Business, contracts executed rose Y/Y due to the recording of assets for large-scale projectsfor government agencies and municipalities.
Both contracts executed and new transactions in the finance business rose Y/Y.
Contracts executed : 23.3% up New transactions : 2.2% down
Contracts executed : 0.6% up New transactions : 0.5% up
Business Performance
Although the equity method gains and gain on investment partnership increased, net income decreased Y/Y due to the deferral in the recognition of the fund income and the asset sales.
2) Business Environment
Total Leasing Contracts:
Total leasing contracts in the industry overall rose 10.7% Y/Y and rose by 18.7% Y/Y for our mainstay Informationand communication equipment leasing.
Bankruptcies:
While the total liabilities decreased Y/Y, there was an increase in the number of bankruptcies, particularly among SMEs.
Y/Y change in total leasing contracts
Bankruptcies (Total liabilities/Number）
(%)
(Billions of Yen)
(Number)
40
30 20 10
01,000-10
-20 -30 -40
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(Source: Lease statistics of the Japan Leasing Association)
(Source: Bankruptcy information on the website of Teikoku Data Bank; liabilities of companies that filed for bankruptcy)
3) Financial Summary
Revenues:
The decrease in finance business which had won the several asset sales was offset by the Leasing Business and the revenues remained almost the same level of Y/Y.
Net Income:Although the equity method gains and the profit in the investment partnership increased, net incomedecreased 0.4 Billion Yen Y/Y due to the deferral in the recognition of the fund income, the asset sales and the cost increase attributable to the change in major shareholders.
Performance measures
Main Reasons for Y/Y Increase/Decrease in Net Income
(Billions of Yen)
(Billions of Yen)
FY2024 FY2025
4) Revenues by Business Segment
Revenues by Business Segment
(Billions of Yen)
228.4 16.5 5.5
229.2 16.0 4.4
+0.3%
-3.2%
-20.1%
9.1 6.5 3.3
7.6 4.8 2.9
-16.5%
-26.6%
-13.1%
13.7 7.5 4.1
13.8 6.9 2.2
+0.8%
-8.1%
-46.1%
4.7
4.4
-6.7%
2.1
2.1
-0.5%
0.6
0.5
-16.5%
255.9
254.9
-0.4%
32.6
29.7
-9.0%
11.7
7.8
-33.5%
*Excluding adjustment amount
Leasing Business
Although revenue grew steadily, operating income decreased Y/Y due to a temporally cost increase in funding cost in connection with the major shareholders change and the system development.
Finance Business
Despite an improvement of credit costs, operating income decreased Y/Y due to a temporally cost increase in funding cost in connection with the major shareholders change.
Investment Business
Despite revenue increased Y/Y by the sales of real estate, operating income decreased Y/Y due to the recognitionof credit costs.
Other Business
Not only the recognition of asset sales in the previous year, but also, the increase in SG&A expense leads revenue and income both fell Y/Y.
5) Business Results by Business Segment
Contracts Executed by Business Segment
New Transactions by Business Segment
Contracts Executed by Business Segment
Contracts Executed increased due to a growth in the Leasing Business.
New Transactions by Business Segment
New transactions decreased Y/Y due to a decrease in the Leasing Business, which had won a large-scale project in the previous year.
6) Leasing Business
Contracts Executed by Customer Sector
New Transactions by Customer Sector
Contracts Executed by Customer Sector
In the public sector, contracts executed rose Y/Y due to the acquisition of largeproject.
Private demanddecreased Y/Y due to a decrease in the service industries, etc.
New Transactions by Customer Sector
Publicsector demand thesame level of Y/Y due to the impact of large projects won.
Private sector decreased Y/Y due to a decrease in the service industry, while the distribution industrydemandincreased.
7) Finance Business
Contracts Executed by Form of Contract
Contracts Executed by Customer Sector
Contracts Executed by Form of Contract
Contracts executed from the business loans decreased but the performance of the factoring offset this decline, resulting in the same level of previous year.
Contracts Executed by Customer Sector
While contracts executed decreased in the finance and insurance, the increase of the manufacturing anddistribution, etc., resulting in the same level of previous year.
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