Tokyo Century Corporation TSE:8439

Tokyo Century : Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

Published

Source: MarketScreener

These consolidated financial results are an English translation of excerpts from the Japanese "Kessan Tanshin" including attachments filed with the Tokyo Stock Exchange, solely for the convenience of readers outside Japan.

This report has been prepared in accordance with accounting principles and practices generally accepted in Japan. Amounts less than ¥1 million have been omitted unless otherwise stated.

Consolidated Financial Results (Kessan Tanshin) for the Fiscal Year Ended March 31, 2026 [Japan GAAP]

May 11, 2026

Name of Listed Company: Tokyo Century Corporation Stock Exchange Listing: Tokyo Securities Code: 8439

(URL: https://www.tokyocentury.co.jp/en/)

Representative: Koji Fujiwara, President & CEO, Representative Director

Contact: Tatsuya Hirasaki, Director and Senior Managing Executive Officer, Chief Financial Officer

Phone: +81-3-5209-6710

Date of Annual General Meeting of Shareholders: June 25, 2026 Scheduled Payment Date of Dividends: June 26, 2026 Scheduled Reportable Date of Securities Report: June 18, 2026 Preparation of Supplementary Reference Documents: Yes

Holding of Earnings Call: Yes (for institutional investors and analysts)

  1. Consolidated Performance

    (Amounts less than one million yen are omitted.)

    Fiscal 2024 Fiscal 2025 YoY

    (Millions of yen) (Percentage change)

    (1) Consolidated business results:

    Revenues

    1,368,635

    1,457,670

    6.5%

    Operating income

    117,060

    148,306

    26.7%

    Ordinary income

    132,272

    163,417

    23.5%

    Net income attributable to owners of parent

    85,279

    111,299

    30.5%

    Basic earnings per share (Yen)

    174.51

    227.82

    Diluted earnings per share (Yen)

    173.77

    227.06

    Rate of return on equity (ROE)

    9.0%

    10.4%

    Return on assets (ROA)

    2.0%

    2.3%

    Operating income to revenues

    8.6%

    10.2%

    (2) Consolidated financial condition:

    Total assets

    6,862,861

    7,214,810

    Net assets

    1,176,889

    1,252,593

    Shareholders' equity ratio

    15.0%

    15.5%

    Net assets per share (Yen)

    2,110.36

    2,292.54

    (3) Consolidated cash flows:

    Cash flows from operating activities

    51,371

    (76,934)

    Cash flows from investing activities

    (31,466)

    (61,919)

    Cash flows from financing activities

    (43,381)

    187,955

    Cash and cash equivalents at end of year

    168,797

    219,668

    Notes:

    Total comprehensive income

    Fiscal 2025 ended March 31, 2026:

    ¥126,503 million

    (35.9)%

    Fiscal 2024 ended March 31, 2025:

    ¥197,459 million

    36.1%

    Equity in earnings of affiliates

    Fiscal 2025 ended March 31, 2026: ¥23,617 million

    Fiscal 2024 ended March 31, 2025: ¥18,651 million Shareholders' equity

    Fiscal 2025 ended March 31, 2026: ¥1,120,503 million

    Fiscal 2024 ended March 31, 2025: ¥1,029,614 million

  2. Dividends

    Dividends per Share (Yen) Total Dividends Payout Ratio Dividend on

    First Quarter

    Second Quarter

    Third Quarter

    Year-End Total

    (Millions of yen) (Consolidated) Net Assets Ratio

    (Consolidated)

    Fiscal 2024

    -

    29.00

    -

    33.00

    62.00

    30,363

    35.5%

    3.2%

    Fiscal 2025

    -

    36.00

    -

    44.00

    80.00

    39,236

    35.1%

    3.6%

    Fiscal 2026 (Forecast)

    -

    45.00

    -

    45.00

    90.00

    35.8%

  3. Consolidated Results Forecast for the Fiscal Year Ending March 31, 2027 (As of May 11, 2026)

Net income attributable to owners of parent

Full Year YoY

(Millions of yen) (Percentage change)

123,000 10.5%

251.66

Basic earnings per share (Yen)

Notes

  1. Significant changes in the scope of consolidation during the period: Yes Newly included:- companies

    Excluded: 3 companies NTT Global Data Centers Joint Venture CH, LLC

    NTT Global Data Centers Holding CH, LLC NTT Global Data Centers CH, LLC

    Note: For details, please refer to "3. Consolidated Financial Statements and Primary Notes, (5) Notes to the Consolidated Financial Statements, Changes in Status of Significant Subsidiaries During the Fiscal Year Under Review" on page 18 of this document.

  2. Changes in accounting policies, changes in accounting estimates, and retrospective restatements

    1. Changes in accounting policies due to reforms of accounting standards: None

    2. Changes in accounting policies other than item 1) above: None

    3. Changes in accounting estimates: None

    4. Retrospective restatements: None

  3. Number of shares of common stock issued

    1. Number of shares issued at the end of the period (including treasury stock) As of March 31, 2025: 492,113,280 shares

      As of March 31, 2026: 492,113,280 shares

    2. Number of shares of treasury stock at the end of the period

      As of March 31, 2025: 4,227,504 shares

      As of March 31, 2026: 3,351,414 shares

    3. Average number of shares outstanding during the period

Fiscal year ended March 31, 2025: 488,675,515 shares

Fiscal year ended March 31, 2026: 488,544,097 shares

Note:

The Company introduced the BBT-RS (Board Benefit Trust-Restricted Stock). The number of shares of treasury stock at the end of the period includes the Company shares held by the trust for the BBT-RS plan (1,690,526 shares as of March 31, 2026, 1,850,700 shares as of March 31, 2025). In addition, the number of shares of treasury stock deducted in the calculation of the average number of shares outstanding during the period includes the Company shares held by the trust for the BBT-RS plan (1,768,199 shares as of March 31, 2026, 1,061,144 shares as of March 31, 2025).

(Reference: Outline of non-consolidated business results)

1. Non-consolidated Performance

Fiscal 2024 Fiscal 2025 YoY

(Millions of yen) (Percentage change)

(1) Non-consolidated business results:

Revenues

375,424

381,158

1.5%

Operating income

16,579

(50,388)

-%

Ordinary income

36,022

6,893

(80.9)%

Net income

36,752

15,876

(56.8)%

Basic earnings per share (Yen)

75.21

32.50

Diluted earnings per share (Yen)

74.89

32.39

(2) Non-consolidated financial condition:

Total assets

3,072,782

3,062,310

Net assets

422,053

416,071

Shareholders' equity ratio

13.7%

13.5%

Net assets per share (Yen)

859.86

847.64

Note:

Shareholders' equity

Fiscal 2025 ended March 31, 2026:

¥414,296 million

Fiscal 2024 ended March 31, 2025:

¥419,512 million

These financial results are outside the scope of audit by a certified public accountant or an audit corporation.

Explanation related to forward-looking statements and other items warranting special mention (Regarding forward-looking statements)

The statements concerning future performance presented in this document are prepared based on currently available

information and certain preconditions that Tokyo Century Corporation and its Group companies believe to be reasonable at the publication of this document. These statements do not purport that the Company pledges to realize such statements. Actual results may be substantially different from any projections presented herein due to various factors.

(Methods for obtaining supplementary reference documents for financial statements)

The supplementary reference documents were disclosed on the TDnet on the same date as this document (Japanese only) and were also posted on the Company's website.

The Company plans to hold an earnings call on Thursday, May 14, 2026.

  1. Overview of Business Results

    * In this section, "1. Overview of Business Results," the amounts expressed in units of millions have been rounded off to the nearest hundred million.

    1. Overview of Business Results for the Fiscal Year under Review

      1. Overview of the fiscal year under review

        During the fiscal year ended March 31, 2026 (the "fiscal year under review"), the Japanese economy continued on a moderate recovery trend, primarily driven by domestic demand, supported by robust corporate earnings, an improved income environment underpinned by record-high wage increases, and strong capital investment in digitalization and labor-saving technologies. However, the Bank of Japan's decision to raise its policy interest rate marked a significant shift away from the prolonged low-interest-rate environment. Meanwhile, the tariff policies and protectionist measures actively pursued by the Trump administration in the U.S. had a significant impact on the export environment and supply chains, while persistently rising prices, severe labor shortages, and volatile exchange rates continued to pose downside risks to the economy amid rapid changes in the external environment, leaving the outlook unpredictable.

        Against this backdrop, the Tokyo Century Group achieved the targets of its five-year Medium-Term Management Plan 2027, announced in May 2023, well ahead of schedule and by a significant margin. The Company also launched its corporate transformation program "TC Compass" at the beginning of fiscal 2025, and on May 11, 2026, announced its ten-year "Long-Term Vision 2035" and five-year "Medium-Term Management Plan 2030." The Company has defined its vision for ten years hence as "A Company Driving Solutions to Global Social Issues with an Entrepreneurial Spirit," and will strive to become a leading company that pioneers uncharted territories using its unique expertise and competitive strengths, creates new value, and drives solutions to global social issues.

        For the fiscal year under review, revenues increased ¥89,000 million, or 6.5%, to ¥1,457,700 million, and gross profit increased ¥48,000 million, or 17.1%, to ¥328,300 million, mainly due to increased income in the Specialty Financing and International Business segments.

        Selling, general and administrative expenses increased ¥16,800 million, or 10.3%, to ¥179,900 million, mainly due to increases in personnel and non-personnel expenses in the Automobility, Speciality Financing, and International Business segment.

        Non-operating income minus non-operating expenses amounted to a net income of ¥15,100 million, down ¥100 million, or 0.7%, from the previous fiscal year.

        Due to the factors mentioned above, ordinary income increased ¥31,100 million, or 23.5%, to ¥163,400 million from the previous fiscal year.

        Extraordinary income minus extraordinary losses amounted to a net loss of ¥7,500 million, down ¥20,700 million from the previous fiscal year. Although there was a recording of a Russia-related insurance settlement, there was mainly due to impairment loss related to the biomass co-firing power generation business. Income taxes decreased ¥13,000 million, or 25.7%, to ¥37,600 million, and net income attributable to non-controlling interests decreased ¥2,500 million, or 26.7%, to ¥7,000 million, respectively, from the previous fiscal year.

        As a result, net income attributable to owners of parent increased ¥26,000 million, or 30.5%, to ¥111,300 million from the previous fiscal year.

        Average exchange rate during the period for the preparation of consolidated financial statements for the major overseas subsidiaries and affiliates closing accounts in December is ¥149.62/US$ for the fiscal year ended December 31, 2025 (January to December 2025), compared to ¥151.68/US$ for the previous fiscal year (January to December 2024).

      2. Status of business (Strengthening of sales base)

        [Equipment Leasing]

        • The Company entered into a "Partnership Agreement for the Realization of Regional Decarbonization" with Higashihiroshima City in Hiroshima Prefecture and Higashihiroshima Smart Energy Co., Ltd. (hereinafter, "HSE"), aimed at achieving a decarbonized society in Higashihiroshima City. Selected as a "Decarbonization Leading Area" by the Ministry of the Environment, the City faces complex challenges unique to urban decarbonization. Under this agreement, the Company will combine its expertise in decarbonization solutions with HSE's locally rooted supply capabilities to promote the adoption of energy-saving and high-efficiency equipment and establish a framework for stable power supply in the City. Centered on the Regional Co-Creation Business Division newly established in fiscal 2025, the Company will work in collaboration with partner companies and local governments to support regional decarbonization and local economic development through the introduction of renewable energy and the promotion of energy-saving equipment.

        • NTT TC Leasing Co., Ltd. (hereinafter, "NTL"), a joint venture between the Company and the NTT Group engaged in comprehensive leasing operations, achieved record-high earnings, offsetting increased funding costs resulting from rising yen interest rates. Base revenues grew through a focus on expanding NTT Group-related business, including financing for overseas data centers, and on expanding growth areas through co-

          creation and partnership collaboration with the Company in the environmental, real estate, and education sectors. The Company will continue to deepen collaboration with NTL and the NTT Group across diverse fields, generating co-creation initiatives that contribute to enhancing corporate value for both companies and resolving social issues.

          [Automobility]

        • The Company entered into an agreement to acquire all shares of Bargain Car Rentals Australia Pty Ltd (hereinafter, "Bargain Car Rentals"), an independent car rental company in Australia. This represents the Company's first sole investment in an overseas car rental business. Australia has robust and growing demand for car rentals as infrastructure for intercity travel. By combining the operational know-how and DX expertise cultivated at NIPPON Rent-A-Car Service, Inc., a consolidated subsidiary, with Bargain Car Rentals' branch network across Australia, the Company aims to maximize corporate value at an early stage. Looking ahead, the Company will also explore expansion into adjacent areas such as vehicle leasing, finance, and used vehicle operations, accelerating the development of a mobility value chain and expanding its business base in Australia, while contributing to the advancement of a global mobility society.

          [Specialty Financing]

        • The Company acquired additional shares in Advantage Partners Pte. Ltd., the holding company of the Advantage Partners Group (hereinafter, "AP Group"), making it an equity-method affiliate. The Company positions the AP Group as the core pillar of its investment management business, and by leveraging the strengths of both companies to advance a distinctive "hybrid investment business model," will provide high-value solutions to companies facing various management challenges such as business succession and the unwinding of parent-subsidiary listings. Through this strengthened partnership, the Company will expand collaboration beyond traditional buyouts in Japan to include growth support for listed companies, corporate investment in Asia, and renewable energy, contributing to the resolution of social issues and the development of Japan's economy and society.

        • The Company acquired shares in C Transport Maritime Ltd., the vessel ownership and procurement arm of C Transport Maritime Group, a prominent Monaco-based shipping group, making it an equity-method affiliate. Through collaboration with this group, which operates one of the world's largest dry bulk vessel pools, the Company will systematically accumulate shipping market intelligence and specialized vessel management and operational expertise. By combining this with the Company's robust network within the Japanese maritime cluster, including shipyards, shipowners, and trading houses, and the group's global business platform, the Company aims to facilitate access to high-quality vessel assets, generate co-investment opportunities, provide diverse maritime solutions, and contribute to the sustainable development of the shipping industry.

          [International Business]

        • The Company established a leasing company in Australia, Isuzu Financial Services Australia Pty Ltd. (hereinafter, "IFSA"), as a joint venture with Isuzu Australia Ltd., a 100% owned subsidiary of Isuzu Motors Limited. Against a backdrop of rising transportation costs, demand for stable vehicle operation and optimized operating costs is growing in Australia, where Isuzu commands a strong market share in commercial vehicles, and the leasing market is expected to achieve stable growth. IFSA will offer maintenance leasing integrated with new vehicle sales, providing support throughout the entire vehicle lifecycle. Through this joint venture with Isuzu, the Company will combine high-quality vehicles with its own strengths to deliver solutions that accurately address increasingly diverse and sophisticated customer needs.

        • CSI Leasing, Inc., a consolidated subsidiary of the Company, acquired a majority of the shares of Aeroservicios USA, Inc., a specialist in aircraft ground support equipment (GSE). This acquisition adds equipment refurbishing capabilities and resale functions to the existing GSE leasing business, enabling a full-fledged rollout of "GSE Lifecycle Management" covering everything from equipment introduction to disposal. In the GSE market, which is expected to see stable growth, the Company will provide high-quality equipment and asset management on a one-stop basis, extend equipment lifespan and promote reuse to maximize resource utilization, address diverse customer needs, contribute to the realization of a circular economy, and pursue sustained enhancement of corporate value.

        [Environmental Infrastructure]

        • The Company established a joint venture with Downing LLP, a UK-based renewable energy investment and development specialist, for the purpose of investing in, constructing, and operating solar power plants in the United Kingdom. This marks the Company's first entry into the construction phase of solar power plants in the UK, and its first joint venture with an overseas partner for co-management of a renewable energy business. The joint venture aims to build a solar power portfolio with a cumulative capacity of approximately 500 MW (around 10 sites) by 2028, with long-term stable revenue streams expected through the Contract for Difference (CfD) scheme (Note), the UK government's main mechanism for supporting renewable energy. Through this

          business, the Company will acquire risk management and governance expertise in power plant construction and development, enhance its overseas business management capabilities, and contribute to the realization of a decarbonized society through the spread of clean energy.

          (Note) Contract for Difference; a scheme that guarantees power producers a predetermined price and stabilizes revenues by adjusting the difference from market prices.

        • The Company is actively advancing its grid-scale battery business as a pillar of its growth strategy. As the importance of grid-scale batteries grows as a means of absorbing output fluctuations from expanding domestic renewable energy capacity and stabilizing the power grid, the Company has commenced commercial operations of grid-scale battery storage systems in Osaka and Iwate prefectures, and has launched a project to co-locate battery storage with one of Japan's largest solar power sites in Kagoshima Prefecture, steadily accumulating operational projects. Going forward, by focusing on a self-led development structure to accelerate project formation and ensure the accumulation of operational know-how, the Company aims to achieve approximately 600 MW of operational capacity and contribute to the realization of a decarbonized society through the expansion of renewable energy and the stabilization of the power grid.

          (Strengthening of management base)

          • With its global footprint expanding and business operations scaling up, Tokyo Century found it essential to enhance its ability to respond promptly and flexibly to evolving and diversifying external changes and social issues. To address these challenges and maximize corporate value over the medium to long term, the Company implemented an organizational reform and transitioned to a C-suite structure effective April 1, 2026. By enhancing business competitiveness, accelerating decision-making, and reinforcing Group governance, the Company will accelerate corporate transformation and enhance its management framework, thereby pursuing the ongoing improvement and maximization of its corporate value.

          • The Company received a leadership-level score of "A-" (A minus) for the first time in the 2025 CDP (Note) "Climate Change" assessment. This recognition reflects a comprehensive evaluation of the Company's ongoing efforts, including deeper disclosure based on TCFD recommendations, more precise calculation of greenhouse gas emissions across the entire supply chain, and the expansion of its renewable energy business, as well as its commitment to transparent information disclosure. Using this recognition as a new driving force, the Company will further accelerate its efforts to address the global social issue of climate change by providing financial and service solutions, and will dedicate itself fully to creating a sustainable future.

            (Note) An abbreviation for Carbon Disclosure Project; an international non-profit organization that operates an environmental disclosure system, conducting surveys, assessments, and publications for companies and cities in areas such as climate change.

          • The Company formulated Japan's first "Self-Assessment-Style Positive Impact Financing Framework" (hereinafter, the "Framework") and, based on this Framework, procured a total of ¥171,400 million in funding. The Framework is characterized by the Company's proactive assessment and management of the social and environmental impact of its business activities, and its autonomous promotion of sustainability management through engagement with lenders. The Company will continue to secure diverse funding methods and accelerate the creation of positive impact through its business activities, working to contribute to the realization of an environmentally sound, sustainable economy and society and the sustained enhancement of corporate value.

          • The Company received a "Gold" rating, the highest rating, under the PRIDE Index 2025, an evaluation index for LGBTQ+ and other sexual minority initiatives in the workplace, formulated by work with Pride, a general incorporated association, for the second consecutive year. In addition, TC Hotels & Resorts Corporation, a wholly owned subsidiary of the Company that operates ANA InterContinental Beppu Resort & Spa and Hotel Indigo Karuizawa, also received a "Gold" rating, marking a double award for the Group. The Company is advancing the hiring, development, and promotion of diverse human resources based on its Basic Policy on Diversity, and will continue to create a workplace where every individual can thrive, realizing Diversity, Equity, and Inclusion (DE&I) through the integration of diverse talent.

      3. Overview of business results by segment Business results by segment were as follows.

        Revenues for each segment represent "revenues from customers," and segment income represents the amount for the "reportable segment."

        [Equipment Leasing]

        Revenues increased ¥13,000 million, or 2.9%, to ¥462,100 million, and segment income decreased 0.1%, to

        ¥22,800 million, respectively, from the previous fiscal year. The balance of segment assets increased ¥33,500 million, or 2.6%, to ¥1,308,500 million from the end of the previous fiscal year.

        [Automobility]

        Revenues increased ¥14,200 million, or 4.7%, to ¥314,900 million, and segment income decreased ¥5,600

        million, or 31.4%, to ¥12,100 million, respectively, from the previous fiscal year. The decrease in segment income was mainly because of the recording of extraordinary losses related to a subsidiary's IT systems. The balance of segment assets increased ¥28,400 million, or 5.7%, to ¥529,200 million from the end of the previous fiscal year.

        [Specialty Financing]

        Revenues increased ¥8,500 million, or 2.5%, to ¥343,000 million, and segment income increased ¥79,300 million, or 241.3%, to ¥112,200 million, respectively, from the previous fiscal year. The increase in segment income was mainly because of the recording of Russia-related insurance settlement at Aviation Capital Group LLC, a consolidated subsidiary. The balance of segment assets increased ¥228,500 million, or 7.7%, to

        ¥3,201,400 million from the end of the previous fiscal year.

        [International Business]

        Revenues increased ¥48,200 million, or 21.7%, to ¥270,900 million, and segment income increased ¥7,200 million, or 44.4%, to ¥23,500 million, respectively, from the previous fiscal year, mainly due to an increase in gain on sale of investment securities and the U.S. data center business. The balance of segment assets increased ¥30,900 million, or 3.2%, to ¥1,008,100 million from the end of the previous fiscal year.

        [Environmental Infrastructure]

        Revenues increased ¥5,200 million, or 8.6%, to ¥66,100 million, and segment income decreased ¥44,500 million, to a loss of ¥44,500 million, from the previous fiscal year. The decrease in segment income was mainly due to impairment loss related to the biomass co-firing power generation business. The balance of segment assets decreased ¥67,900 million, or 23.8%, to ¥217,300 million from the end of the previous fiscal year.

        In the fiscal year ending March 31, 2027, the Company plans to change its reportable segments in line with the reorganization of its corporate structure.

        Segment Income

        (Billions of yen)

        Classification

        Fiscal Year ended March 31, 2025

        Fiscal Year ended March 31, 2026

        Change

        Amount

        %

        Reportable Segment

        Equipment Leasing

        22.8

        22.8

        (0.0)

        (0.1)

        Automobility

        17.7

        12.1

        (5.6)

        (31.4)

        Specialty Financing

        32.9

        112.2

        79.3

        241.3

        International Business

        16.3

        23.5

        7.2

        44.4

        Environmental

        Infrastructure

        0.1

        (44.5)

        (44.5)

        -

        Total for Reportable

        Segments

        89.8

        126.2

        36.4

        40.6

        Other, Adjustment

        (4.5)

        (14.9)

        (10.4)

        -

        Amount Recorded in Consolidated

        Statements of Income

        85.3

        111.3

        26.0

        30.5

        Balance of Segment Assets

        (Billions of yen)

        Classification

        As of March 31, 2025

        As of March 31, 2026

        Change

        Amount

        %

        Reportable Segment

        Equipment Leasing

        1,275.0

        1,308.5

        33.5

        2.6

        Automobility

        500.8

        529.2

        28.4

        5.7

        Specialty Financing

        2,972.9

        3,201.4

        228.5

        7.7

        International Business

        977.2

        1,008.1

        30.9

        3.2

        Environmental

        Infrastructure

        285.2

        217.3

        (67.9)

        (23.8)

        Total for Reportable

        Segments

        6,011.0

        6,264.5

        253.5

        4.2

        Other

        48.8

        46.2

        (2.6)

        (5.3)

        Total of Segment Assets

        6,059.9

        6,310.7

        250.9

        4.1

    2. Overview of Financial Conditions for the Fiscal Year under Review

      Total assets at the end of the fiscal year under review increased ¥351,900 million, or 5.1%, to ¥7,214,800 million from the end of the previous consolidated fiscal year. Segment assets increased ¥250,900 million, or 4.1%, to

      ¥6,310,700 million from the end of the previous consolidated fiscal year.

      Total liabilities increased ¥276,200 million, or 4.9%, to ¥5,962,200 million from the end of the previous consolidated fiscal year. Interest-bearing debts increased ¥229,900 million, or 4.7%, to ¥5,142,500 million.

      Total net assets increased ¥75,700 million, or 6.4%, to ¥1,252,600 million from the end of the previous consolidated fiscal year.

      As a result, the shareholders' equity ratio increased 0.5 percentage points compared with the end of the previous consolidated fiscal year to 15.5%.

      Exchange rates at the end of the period for the preparation of consolidated financial statements for the major overseas subsidiaries and affiliates closing accounts in December are ¥156.54/US$ at the end of the fiscal year ended December 31, 2025 (December 31, 2025), and ¥158.17/US$ at the end of the previous consolidated fiscal year (December 31, 2024).

    3. Overview of Cash Flow for the Fiscal Year under Review

      Net cash used in operating activities amounted to ¥76,900 million, mainly due to expenditures for the purchase of leased assets. Net cash used in investing activities amounted to ¥61,900 million, mainly due to the expenditures for the purchases of investments in securities. Net cash provided by financing activities amounted to ¥188,000 million, mainly due to proceeds from borrowings and bonds. Due to the factors mentioned above, cash and cash equivalents at the end of the consolidated fiscal year under review increased ¥50,900 million to ¥219,700 million from the end of the previous consolidated fiscal year.

    4. Future Outlook

      The Japanese economy is expected to continue on a moderate recovery trend, primarily driven by domestic demand, supported by robust corporate earnings and an improved income environment underpinned by record-high wage increases. On the other hand, concerns remain over changes in the financial environment resulting from the Bank of Japan's policy interest rate hikes, as well as the impact of the Trump administration's protectionist measures in the U.S. and Middle Eastern tensions on the export environment and supply chains. Furthermore, downside risks to the economy persist, including persistently rising prices, severe labor shortages, and volatile exchange rates, and the outlook remains unpredictable.

      Regarding the impact of the current instability in the Middle East on our profit plan for the fiscal year ending March 31, 2027, we currently assume that the direct impact will be limited. However, we will continue to closely monitor indirect impacts resulting from a prolonged situation, such as cost increases including interest rates, weakened demand, and changes in the credit status of our customers. Specifically, we will carefully assess and appropriately respond to changes in the indirect business environment for each individual business. These include the impact on the renewable energy business due to rising electricity market prices driven by soaring crude oil and LNG prices, the ripple effect on the automobility business (such as car rental demand) due to a decline in inbound tourism caused by higher airfares from rising crude oil prices, and risks of instability in the shipping and used car markets.

      Considering the downside concerns arising from such prolonged instability in the Middle East, we have incorporated a risk buffer of ¥2,000 million in formulating our consolidated results forecast as a precaution against these uncertainties.

      In this economic environment, our consolidated results forecast for the fiscal year ending March 31, 2027 is

      ¥123,000 million of net income attributable to owners of parent (up 10.5% from the previous consolidated fiscal year).

    5. Basic Policy on Distribution of Profits, as well as Dividends for both the Fiscal Year under Review and the Next Fiscal Year

    The Group believes that an ongoing commitment to the expansion of business content and the reinforcement of its business structure should gain higher corporate value. In this context, the Company complies with a basic policy of stably distributing profits to its shareholders over the long term with due consideration given to increasing its

    retained earnings.

    Under the Medium-Term Management Plan 2027, our policy on dividends per share is to distribute progressive amounts in an aim to increase dividends with profit growth, targeting a payout ratio of approximately 35%.

    As for dividends for the fiscal year ended March 31, 2026, we initially forecasted to pay an annual dividend of

    ¥68 per share (interim dividend of ¥34, year-end dividend of ¥34). The interim dividend was ¥36 per share. As for the year-end dividend, we plan to increase it by ¥10 per share from the initial forecast to ¥44 per share. As a result, the annual dividend per share will be ¥80 (interim dividend of ¥36, year-end dividend of ¥44).Under the "Medium-Term Management Plan 2030," to achieve both long-term enhancement of shareholder value and stable dividends, we will maintain a basic policy of progressive dividends while aiming for dividend increases driven by profit growth, targeting a dividend payout ratio of 35% or more.

    Based on this policy, for the next fiscal year, we plan to pay an annual dividend of ¥90 per share (an interim dividend of ¥45 and a year-end dividend of ¥45, with a payout ratio of 35.8%).

    Regarding internal reserve funds, we will strive to optimize our business portfolio focused on improving capital efficiency and profit growth by executing growth investments centered on M&A and collaboration with partners who drive portfolio transformation.

  2. Basic Stance on Selection of Accounting Standards

    We judge that our consolidated financial statements based on Japan GAAP appropriately reflect the Company's results of operations and financial conditions. Furthermore, with regard to the selection of accounting standards, having considered the costs and benefits from various points of view such as streamlining of financial reporting, ensuring comparability, and impact on fund procurement, we deem it suitable at this time to apply Japan GAAP.

    Our policy is to continue to closely observe trends in IFRS and Japanese accounting system and standards, and to respond appropriately with regard to selection of accounting standards.

  3. Consolidated Financial Statements and Primary Notes

    1. Consolidated Balance Sheets

      (Millions of yen)

      As of March 31, 2025 As of March 31, 2026

      Assets

      Current assets

      Cash on hand and in banks

      177,364

      221,478

      Accounts receivable - installment sales

      186,858

      197,021

      Lease receivables and investment assets

      1,488,603

      1,588,984

      Loans

      409,423

      361,709

      Operational investment securities

      420,892

      427,988

      Accounts receivable - leases

      72,474

      72,322

      Short-term investment securities

      100

      100

      Inventories

      33,983

      41,670

      Other current assets

      289,643

      315,287

      Allowance for doubtful accounts

      (3,285)

      (8,609)

      Total current assets

      3,076,059

      3,217,955

      Non-current assets

      Property and equipment

      Leased assets

      2,638,974

      2,837,562

      Advances for purchases of property for lease

      125,291

      135,150

      Other operating assets

      273,873

      128,768

      Construction in progress

      28,612

      10,218

      Own assets in use

      32,479

      31,926

      Total property and equipment

      3,099,230

      3,143,626

      Intangible assets

      Computer programs leased to customers

      2,466

      2,705

      Goodwill

      71,912

      56,245

      Other intangible assets

      50,569

      34,028

      Total intangible assets

      124,948

      92,979

      Investments and other assets

      Investments in securities

      451,367

      615,698

      Claims provable in bankruptcy or rehabilitation

      3,259

      3,152

      Deferred tax assets

      17,952

      43,689

      Retirement benefit asset

      286

      4

      Other investments

      91,096

      99,480

      Allowance for doubtful accounts

      (3,184)

      (3,095)

      Total investments and other assets

      560,777

      758,930

      Total non-current assets

      3,784,956

      3,995,536

      Deferred assets

      1,845

      1,319

      Total assets

      6,862,861

      7,214,810

      (Millions of yen)

      As of March 31, 2025 As of March 31, 2026

      Liabilities

      Current liabilities

      Notes and accounts payable - trade 226,580 223,956

      Short-term borrowings 358,785 404,965

      Current portion of bonds 155,113 156,108

      Current portion of long-term debt 713,229 1,041,539

      Commercial papers 210,600 318,787

      Payables under fluidity lease receivables 10,600 12,500

      Current portion of long-term payables under fluidity lease

      receivables

      2,400

      5,070

      Lease obligations 10,192 11,610

      Accrued income taxes 16,169 23,080

      Provision for bonuses 4,592 5,452

      Deferred profit on installment sales 19,688 22,072

      Provision for share awards for directors (and other officers) 164 199

      Provision for bonuses for directors (and other officers) 538 438

      Other current liabilities 151,093 166,895

      Other provisions 1,313 437

      Long-term liabilities

      Total current liabilities 1,881,062 2,393,114

      Long-term debt 2,367,941 2,214,978

      Bonds payable 1,092,441 982,155

      Lease obligations 24,879 20,534

      Long-term payables under fluidity lease receivables 1,450 6,380

      Provision for retirement benefits for directors (and other

      officers)

      356

      243

      Deferred tax liabilities 72,483 100,241

      Provision for automobile inspection costs 702 733

      Provision for share awards for directors (and other officers) 70 177

      Net defined benefit liability 11,318 9,625

      Other provisions 307 841

      Total long-term liabilities 3,804,909 3,569,103

      Other long-term liabilities 232,958 233,191

      Net assets

      Total liabilities 5,685,971 5,962,217

      Common stock without par value 81,129 81,129

      Shareholders' equity

      Retained earnings 582,759 665,085

      Capital surplus 56,247 56,547

      Total shareholders' equity 715,510 798,869

      Treasury stock (4,625) (3,893)

      Net unrealized holding gains on securities 34,345 47,707

      Accumulated other comprehensive income

      Translation adjustments 269,269 264,812

      Deferred gains or losses on hedges 9,248 6,950

      Total accumulated other comprehensive income 314,104 321,634

      Remeasurements of defined benefit plans 1,240 2,162

      Non-controlling interests 144,734 130,314

      Share subscription rights 2,540 1,775

      Total net assets 1,176,889 1,252,593

      Total liabilities and net assets 6,862,861 7,214,810

    2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

      Consolidated Statements of Income

      (For the years ended March 31, 2025 and 2026)

      (Millions of yen)

      Fiscal 2024

      Fiscal 2025

      Revenues

      1,368,635

      1,457,670

      Costs

      1,088,408

      1,129,417

      Gross profit

      280,226

      328,253

      Selling, general and administrative expenses

      163,166

      179,946

      Operating income

      117,060

      148,306

      Non-operating income

      Interest income

      1,027

      1,685

      Dividend income

      2,331

      1,578

      Equity in earnings of affiliates

      18,651

      23,617

      Foreign exchange gains

      2,366

      -

      Other

      1,118

      1,115

      Total non-operating income

      25,496

      27,997

      Non-operating expenses

      Interest expense

      9,681

      11,181

      Foreign exchange losses

      -

      677

      Other

      602

      1,026

      Total non-operating expenses

      10,284

      12,885

      Ordinary income

      132,272

      163,417

      Extraordinary income

      Russia-related insurance settlement

      -

      *182,440

      Gain on liquidation of subsidiaries

      *22,633

      -

      Gain on sale of shares of subsidiaries and associates

      1,603

      -

      Other

      10,270

      1,670

      Total extraordinary income

      14,507

      84,110

      Extraordinary losses

      Impairment loss

      -

      *386,925

      Other

      1,367

      4,698

      Total extraordinary losses

      1,367

      91,623

      Income before income taxes

      145,413

      155,904

      Income taxes - current

      28,896

      32,255

      Income taxes - deferred

      21,745

      5,389

      Total income taxes

      50,641

      37,644

      Net income

      94,771

      118,259

      Net income attributable to non-controlling interests

      9,492

      6,960

      Net income attributable to owners of parent

      85,279

      111,299

      Consolidated Statements of Comprehensive Income (For the years ended March 31, 2025 and 2026)

      (Millions of yen)

      Fiscal 2024

      Fiscal 2025

      Net income

      94,771

      118,259

      Other comprehensive income

      Net unrealized holding gains on securities

      (2,902)

      13,572

      Deferred gains or losses on hedges

      (1,277)

      (3,849)

      Translation adjustments

      103,892

      (9,095)

      Remeasurements of defined benefit plans

      125

      1,040

      Share of other comprehensive income of affiliates accounted for using equity method

      2,850

      6,575

      Total other comprehensive income

      102,688

      8,243

      Comprehensive income

      197,459

      126,503

      Comprehensive income attributable to:

      Owners of parent

      187,784

      118,830

      Non-controlling interests

      9,675

      7,673

    3. Consolidated Statements of Changes in Net Assets

      (For the year ended March 31, 2025)

      (Millions of yen)

      Shareholder's equity

      Common stock

      Capital surplus

      Retained earnings

      Treasury stock

      Total shareholders' equity

      Balance at beginning of year

      81,129

      56,199

      524,903

      (1,599)

      660,631

      Changes of items during the period

      Cash dividends

      (27,423)

      (27,423)

      Net income attributable to owners of parent

      85,279

      85,279

      Purchase of treasury stock

      (3,079)

      (3,079)

      Disposal of treasury stock

      48

      53

      101

      Increase in retained earnings due to newly added equity-method

      affiliates

      -

      Net changes of items other than shareholders' equity

      Total changes of items during the period

      -

      48

      57,856

      (3,025)

      54,878

      Balance at end of year

      81,129

      56,247

      582,759

      (4,625)

      715,510

      Accumulated other comprehensive income

      Share subscription rights

      Non-controlling interests

      Total net assets

      Net unrealized holding gains on securities

      Deferred gains or losses on hedges

      Translation adjustments

      Remeasurements of defined benefit plans

      Total accumulated other

      comprehensive income

      Balance at beginning of year

      37,994

      9,839

      163,105

      658

      211,598

      2,240

      136,704

      1,011,176

      Changes of items during the period

      Cash dividends

      (27,423)

      Net income attributable to owners of parent

      85,279

      Purchase of treasury stock

      (3,079)

      Disposal of treasury stock

      101

      Increase in retained earnings due to newly added equity-method

      affiliates

      -

      Net changes of items other than shareholders' equity

      (3,649)

      (591)

      106,163

      581

      102,505

      300

      8,029

      110,834

      Total changes of items during the period

      (3,649)

      (591)

      106,163

      581

      102,505

      300

      8,029

      165,713

      Balance at end of year

      34,345

      9,248

      269,269

      1,240

      314,104

      2,540

      144,734

      1,176,889

      (For the year ended March 31, 2026)

      (Millions of yen)

      Shareholder's equity

      Common stock

      Capital surplus

      Retained earnings

      Treasury stock

      Total

      shareholders' equity

      Balance at beginning of year

      81,129

      56,247

      582,759

      (4,625)

      715,510

      Changes of items during the period

      Cash dividends

      (33,817)

      (33,817)

      Net income attributable to owners of parent

      111,299

      111,299

      Purchase of treasury stock

      (0)

      (0)

      Disposal of treasury stock

      300

      732

      1,032

      Increase in retained earnings due to newly

      added equity-method affiliates

      4,844

      4,844

      Net changes of items other than shareholders' equity

      Total changes of items during the period

      -

      300

      82,326

      732

      83,359

      Balance at end of year

      81,129

      56,547

      665,085

      (3,893)

      798,869

      Accumulated other comprehensive income

      Share subscription rights

      Non-controlling interests

      Total net assets

      Net unrealized holding gains on securities

      Deferred gains or losses on hedges

      Translation adjustments

      Remeasurements of defined benefit plans

      Total accumulated other comprehen-

      sive income

      Balance at beginning of year

      34,345

      9,248

      269,269

      1,240

      314,104

      2,540

      144,734

      1,176,889

      Changes of items during the period

      Cash dividends

      (33,817)

      Net income attributable to owners of parent

      111,299

      Purchase of treasury stock

      (0)

      Disposal of treasury stock

      1,032

      Increase in retained earnings due to newly added equity-method

      affiliates

      4,844

      Net changes of items other than shareholders' equity

      13,362

      (2,297)

      (4,456)

      922

      7,530

      (765)

      (14,420)

      (7,655)

      Total changes of items during the period

      13,362

      (2,297)

      (4,456)

      922

      7,530

      (765)

      (14,420)

      75,703

      Balance at end of year

      47,707

      6,950

      264,812

      2,162

      321,634

      1,775

      130,314

      1,252,593

    4. Consolidated Statements of Cash Flows

      (For the years ended March 31, 2025 and 2026)

      (Millions of yen)

      Fiscal 2024 Fiscal 2025

      Cash flows from operating activities

      Income before income taxes

      145,413

      155,904

      Depreciation and amortization of leased assets

      234,551

      244,750

      Loss on disposal of leased assets

      320,960

      341,249

      Impairment loss

      2,268

      96,457

      Depreciation of own-used assets, and loss on sales and

      retirement of own-used assets

      12,484

      14,325

      Depreciation of other operating assets, and cost of other operating assets sales

      14,255 20,338

      Amortization of goodwill 4,923 4,749

      Foreign exchange losses (gains) (2,366) 677

      Increase (decrease) in allowance for doubtful accounts (2,695) 5,314

      Increase (decrease) in provision for bonuses 546 857

      Increase (decrease) in net defined benefit liability 32 (106)

      Interest and dividend income (3,359) (3,263)

      Interest expense 133,264 136,069

      Share of loss (profit) of entities accounted for using equity

      method

      (18,651)

      (23,617)

      Loss (gain) on sale of investments in securities (10,102) (301)

      Loss (gain) on liquidation of subsidiaries (2,628) －

      Loss (gain) on sale of shares of subsidiaries and associates (1,603) (19,787)

      Russia-related insurance settlement － (82,440)

      Decrease (increase) in installment sales receivable (5,277) (1,092)

      Decrease (increase) in lease receivables and investment assets (62,771) (110,397)

      Decrease (increase) in loans receivable 44,809 47,975

      Decrease (increase) in operational investment securities (61,054) (5,028)

      Purchases of leased assets (494,775) (789,720)

      Purchases of other operating assets (34,916) (9,204)

      Decrease (increase) in construction in progress 4,459 18,591

      Decrease (increase) in claims provable in bankruptcy or

      rehabilitation

      769

      63

      Increase (decrease) in trade notes and accounts payable 7,355 (1,272)

      Other, net (33,717) (36,375)

      Subtotal 192,173 4,716

      Interest and dividend income received 11,926 11,750

      Russia-related insurance settlement received － 82,440

      Interest expense paid (132,332) (138,400)

      Income taxes paid (20,396) (37,440)

      Net cash provided by (used in) operating activities 51,371 (76,934)

      Cash flows from investing activities

      Proceeds from sales of own assets in use 607 1,615

      Proceeds from sales/redemptions of investments in securities 12,162 921

      Purchases of own assets in use (17,770) (20,847)

      Purchases of investments in securities (33,448) (73,586)

      Proceeds from sale of shares of subsidiaries and associates 3,290 571

      Purchase of shares of subsidiaries resulting in change in scope of consolidation

      (1,256) (870)

      Proceeds from sales of shares of subsidiaries resulting in change

      in scope of consolidation

      -

      22,123

      Other, net

      4,948

      8,151

      Net cash provided by (used in) investing activities

      (31,466)

      (61,919)

      (Millions of yen)

      Fiscal 2024

      Fiscal 2025

      Cash flows from financing activities

      Increase (decrease) in short-term borrowings, net

      (75,426)

      40,203

      Increase (decrease) in commercial papers, net

      (140,998)

      104,761

      Proceeds from long-term debt

      1,208,265

      1,193,041

      Repayment of long-term debt

      (933,004)

      (1,022,418)

      Increase (decrease) in payables under securitized lease receivables, net

      1,600

      1,900

      Proceeds from securitization of lease receivables

      -

      10,000

      Repayments of payables under fluidity lease receivables

      (2,460)

      (2,400)

      Proceeds from issuance of bonds

      191,108

      262,911

      Redemption of bonds

      (255,005)

      (361,911)

      Proceeds from share issuance to non-controlling interest shareholders

      2,409

      3,314

      Repayments to non-controlling interest shareholders

      (3,020)

      (1,131)

      Cash dividends paid

      (27,423)

      (33,817)

      Cash dividends paid to non-controlling-interest shareholders

      (5,080)

      (4,982)

      Proceeds from sales of treasury shares

      0

      0

      Purchase of treasury shares

      (3,079)

      (0)

      Other, net

      (1,265)

      (1,516)

      Net cash provided by (used in) financing activities

      (43,381)

      187,955

      Effect of exchange rate changes on cash and cash equivalents

      8,348

      1,770

      Net increase (decrease) in cash and cash equivalents

      (15,128)

      50,870

      Cash and cash equivalents at beginning of year

      183,925

      168,797

      Cash and cash equivalents at end of year

      168,797

      219,668

    5. Notes to the Consolidated Financial Statements

Notes on Going Concern Assumption Not applicable

Changes in Status of Significant Subsidiaries During the Fiscal Year Under Review

The Company transferred a portion of the shares in NTT Global Data Centers Joint Venture CH, LLC (hereinafter "NTT GDC JV") held by TC Global Investments Americas LLC, a consolidated subsidiary whose purpose is to expand investments related to the data center business. As a result of this share transfer, NTT GDC JV, NTT Global Data Centers Holding CH, LLC, and NTT Global Data Centers CH, LLC ceased to be subsidiaries of the Company and therefore no longer qualify as specified subsidiaries of the Company.

Additional Information

(Aircraft Purchase Committed by a Consolidated Subsidiary of the Company)

As of December 31, 2025, consolidated subsidiary Aviation Capital Group LLC (hereinafter "ACG") had commitments to purchase 135 aircraft (mainly narrow-body) from Boeing, Airbus, and other airlines. The aircraft are scheduled for delivery through 2031. The estimated aggregate remaining payments for the purchase of aircraft are ¥1,173,245 million (US$7,494 million).

Furthermore, on January 12, 2026, the Company resolved to place an order for 50 aircraft from Boeing. These aircraft are scheduled for delivery on a rolling basis between 2032 and 2033.

In addition, on February 13, 2026, ACG entered into an agreement with Avolon Aerospace Leasing Limited to purchase 24 aircraft. These aircraft are scheduled for delivery on a rolling basis through September 2026 under the agreement.

Consolidated Statements of Income

*1 Russia-related insurance settlement

Fiscal 2024 (from April 1, 2024 to March 31, 2025) Not applicable

Fiscal 2025 (from April 1, 2025 to March 31, 2026)

Aviation Capital Group LLC (located in California, United States, hereinafter "ACG"), a consolidated subsidiary of the Company, recorded an extraordinary loss in the fiscal year ended March 31, 2023, as it became unlikely that it would be able to recover receivables related to aircraft leased to Russian airlines and loans and loan guarantees for which Russian airlines were the de facto obligators.

Subsequently, ACG pursued litigation against insurers based on insurance contracts covering such leases to Russian airlines. During the fiscal year ended March 31, 2026, ACG reached a settlement with all war risk insurers, received a total of US$551 million in insurance settlement proceeds, and recorded the equivalent amount of the settlement proceeds as extraordinary income.

*2 Gain on liquidation of subsidiaries

Fiscal 2024 (from April 1, 2024 to March 31, 2025)

This gain resulted from the liquidation of Tokyo Century Leasing China Corporation, a former consolidated subsidiary of the Company.

Fiscal 2025 (from April 1, 2025 to March 31, 2026) Not applicable

*3 Impairment loss

Fiscal 2024 (from April 1, 2024 to March 31, 2025) Not applicable

Fiscal 2025 (from April 1, 2025 to March 31, 2026)

This loss was primarily attributable to a decline in profitability in the biomass co-firing power generation business, resulting from a revision of the business plan, and a revision of the system development plan at a consolidated subsidiary of the Company. The book value of each relevant asset was reduced to its recoverable amount.

Segment Information

  1. Outline of reportable segments

    The reportable segments of the Company are components for which separate financial information is available and which are subject to regular review by the Board of Directors for the purpose of making decisions regarding the allocation of management resources and evaluating performance.

    The Company's reportable segments are Equipment Leasing, Automobility, Specialty Financing, International Business, and Environmental Infrastructure.

    1. Equipment Leasing: Leasing and finance (money-lending and investment) including ancillary

      services and other businesses dealing with information and communications equipment, office equipment, industrial machinery, transportation equipment, and equipment for commercial and service industries

    2. Automobility: Automobile leasing for corporate customers and individuals, car rental and

      car sharing businesses, and others

    3. Specialty Financing: Leasing and finance (money-lending and investment) including ancillary

      services and other businesses focusing on product fields, such as shipping, aviation, and real estate in Japan and overseas

    4. International Business: Leasing and finance (money-lending and investment) including ancillary

      services and fleet services businesses, and others, mainly in East Asia,

      ASEAN, North, Central and South America

    5. Environmental Infrastructure: Electric power generation business and leasing and finance (money-lending

      and investment) including ancillary services and other businesses related to renewable energy, etc. in Japan and overseas

  2. Calculation method for amounts for revenues, income or loss, assets, liabilities and other items by reportable segment

    The accounting method for reportable business segments is based on the accounting standards applied for the preparation of consolidated financial statements. The income or loss of reportable segments is based on net income attributable to owners of parent. Intersegment revenues and transfers are based on prevailing market prices.

  3. Information of the amount of revenues, income or loss, assets, liabilities and other items by reportable segment and disaggregated revenue

    Fiscal 2024 (from April 1, 2024 to March 31, 2025)

    (Millions of yen)

    Reportable Segment

    Other (Note 1)

    Total

    Adjustment (Note 2)

    Amount shown on the consolidated financial statements

    (Note 3)

    Equipment Leasing

    Automobility

    Specialty Financing

    International Business

    Environmental Infrastructure

    Total

    Revenues

    Revenues from customers (Note 4)

    449,116

    300,738

    334,528

    222,652

    60,846

    1,367,882

    752

    1,368,635

    -

    1,368,635

    Intersegment revenues

    /transfers

    472

    851

    152

    213

    1

    1,691

    594

    2,285

    (2,285)

    -

    Total

    449,588

    301,590

    334,680

    222,865

    60,848

    1,369,573

    1,347

    1,370,921

    (2,285)

    1,368,635

    Segment income or loss

    22,836

    17,685

    32,872

    16,300

    81

    89,777

    1,716

    91,493

    (6,214)

    85,279

    Segment assets

    1,274,955

    500,762

    2,972,919

    977,222

    285,187

    6,011,046

    48,821

    6,059,867

    802,994

    6,862,861

    Other

    Depreciation and amortization

    17,595

    69,644

    97,475

    60,179

    13,314

    258,208

    1

    258,210

    2,911

    261,121

    Amortization of goodwill

    210

    130

    2,731

    1,740

    110

    4,923

    -

    4,923

    -

    4,923

    Equity in earnings/loss of affiliates

    7,408

    753

    7,813

    1,134

    (5)

    17,105

    1,546

    18,651

    -

    18,651

    Extraordinary income

    63

    89

    682

    3,630

    1

    4,468

    -

    4,468

    10,039

    14,507

    (Russia-related insurance settlement)

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    (Gain on liquidation of

    subsidiaries)

    -

    -

    -

    2,633

    -

    2,633

    -

    2,633

    -

    2,633

    (Other)

    63

    89

    682

    996

    1

    1,834

    -

    1,834

    10,039

    11,873

    Extraordinary losses

    30

    273

    135

    30

    787

    1,257

    0

    1,257

    109

    1,367

    (Impairment loss)

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    (Other)

    30

    273

    135

    30

    787

    1,257

    0

    1,257

    109

    1,367

    Tax expenses

    6,911

    10,812

    27,442

    6,512

    649

    52,327

    92

    52,420

    (1,778)

    50,641

    Investment in equity-method

    affiliates

    138,613

    4,598

    164,843

    20,741

    12,349

    341,146

    17,810

    358,956

    -

    358,956

    Increase in property, plant and equipment and intangible assets (Note 5)

    18,339

    100,156

    296,453

    117,753

    7,657

    540,361

    -

    540,361

    2,641

    543,002

    Notes: 1. "Other" includes casualty insurance agency business, which is not included in any reportable segment.

    1. Adjustment is as follows:

      1. Adjustment to segment income or loss mainly consists of general and administrative expenses, which are not attributed to reportable segments.

      2. Adjustment to segment assets mainly consists of deposits, etc., which are not attributed to reportable segments.

      3. Adjustment to depreciation and amortization consists of adjustment for corporate assets.

      4. Adjustment to increase in property, plant and equipment and intangible assets consists of adjustment for corporate assets.

    2. Segment income or loss is adjusted with net income attributable to owners of parent shown on the consolidated statements of income.

    3. Revenues from contracts with customers included in revenues for the fiscal year ended March 31, 2025 for each of the reportable segments, i.e. Equipment Leasing, Automobility, Specialty Financing, International Business, and Environmental Infrastructure were ¥4,149 million, ¥17,814 million, ¥35,821 million, ¥27,953 million, and ¥54,291 million, respectively.

    4. Increase in property, plant and equipment and intangible assets does not include increase from a newly consolidated subsidiary.

    Fiscal 2025 (from April 1, 2025 to March 31, 2026)

    (Millions of yen)

    Reportable Segment

    Other (Note 1)

    Total

    Adjustment (Note 2)

    Amount shown on the consolidated financial statements

    (Note 3)

    Equipment Leasing

    Automobility

    Specialty Financing

    International Business

    Environmental Infrastructure

    Total

    Revenues

    Revenues from customers

    (Note 4)

    462,066

    314,948

    342,981

    270,900

    66,081

    1,456,979

    691

    1,457,670

    -

    1,457,670

    Intersegment revenues

    /transfers

    735

    817

    103

    216

    1

    1,875

    639

    2,515

    (2,515)

    -

    Total

    462,802

    315,766

    343,085

    271,117

    66,082

    1,458,854

    1,330

    1,460,185

    (2,515)

    1,457,670

    Segment income

    or loss

    22,810

    12,131

    112,179

    23,540

    (44,450)

    126,212

    2,139

    128,351

    (17,051)

    111,299

    Segment assets

    1,308,493

    529,192

    3,201,401

    1,008,133

    217,290

    6,264,510

    46,212

    6,310,722

    904,087

    7,214,810

    Other

    Depreciation and amortization

    18,912

    70,723

    100,278

    68,403

    13,205

    271,522

    0

    271,523

    1,952

    273,476

    Amortization of goodwill

    210

    130

    2,667

    1,630

    110

    4,749

    -

    4,749

    -

    4,749

    Equity in earnings/loss of affiliates

    10,410

    619

    9,146

    1,446

    (3)

    21,620

    1,997

    23,617

    -

    23,617

    Extraordinary income

    820

    270

    82,844

    97

    33

    84,067

    -

    84,067

    43

    84,110

    (Russia-related

    insurance settlement)

    -

    -

    82,440

    -

    -

    82,440

    -

    82,440

    -

    82,440

    (Gain on

    liquidation of subsidiaries)

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    (Other)

    820

    270

    404

    97

    33

    1,627

    -

    1,627

    43

    1,670

    Extraordinary

    losses

    1,253

    13,403

    2,731

    3,680

    70,253

    91,321

    0

    91,322

    301

    91,623

    (Impairment loss)

    -

    12,669

    2,665

    1,467

    70,123

    86,925

    -

    86,925

    -

    86,925

    (Other)

    1,253

    734

    66

    2,213

    129

    4,396

    0

    4,397

    301

    4,698

    Tax expenses

    8,378

    7,063

    37,556

    11,521

    (19,924)

    44,595

    79

    44,674

    (7,029)

    37,644

    Investment in

    equity-method affiliates

    150,086

    5,218

    261,865

    70,683

    24,433

    512,287

    20,006

    532,294

    -

    532,294

    Increase in property, plant and equipment and intangible

    assets (Note 5)

    17,623

    99,995

    552,167

    143,406

    2,457

    815,649

    -

    815,649

    4,123

    819,772

    Notes: 1. "Other" includes casualty insurance agency business, which is not included in any reportable segment.

    1. Adjustment is as follows:

      1. Adjustment to segment income or loss mainly consists of general and administrative expenses, which are not attributed to reportable segments.

      2. Adjustment to segment assets mainly consists of deposits, etc., which are not attributed to reportable segments.

      3. Adjustment to depreciation and amortization consists of adjustment for corporate assets.

      4. Adjustment to increase in property, plant and equipment and intangible assets consists of adjustment for corporate assets.

    2. Segment income or loss is adjusted with net income attributable to owners of parent shown on the consolidated

      statements of income.

    3. Revenues from contracts with customers included in revenues for the fiscal year ended March 31, 2026 for each of the reportable segments, i.e. Equipment Leasing, Automobility, Specialty Financing, International Business, and Environmental Infrastructure were ¥4,520 million, ¥18,443 million, ¥46,893 million, ¥28,973 million, and ¥57,641 million, respectively.

    4. Increase in property, plant and equipment and intangible assets does not include increase from a newly consolidated subsidiary.

  4. Information concerning impairment loss on non-current assets by reportable segments

Fiscal 2024 (from April 1, 2024 to March 31, 2025)

(Millions of yen)

Equipment Leasing

Automobility

Specialty Financing

International Business

Environmental Infrastructure

Total

Impairment loss

-

-

2,268

-

-

2,268

The impairment loss in Specialty Financing is related to assets associated with the leasing of aircraft.

Fiscal 2025 (from April 1, 2025 to March 31, 2026)

(Millions of yen)

Equipment Leasing

Automobility

Specialty Financing

International Business

Environmental Infrastructure

Total

Impairment loss

-

12,669

12,197

1,467

70,123

96,457

The impairment loss of ¥12,669 million for intangible assets was recorded in Automobility. Impairment losses of ¥9,532 million for assets related to the leasing of aircraft, an impairment loss of ¥380 million for real estate assets, and an impairment loss of ¥2,284 million for goodwill were recorded in Specialty Financing. Impairment loss of ¥601 million for assets and ¥865 million for goodwill were recorded in International Business. The impairment loss of ¥70,123 million for non-current assets was recorded in Environmental Infrastructure. The impairment loss of ¥9,532 million for assets to the leasing of aircraft in Specialty Financing is recorded in costs.

Per Share Information

Fiscal 2024

Fiscal 2025

Net assets per share

¥2,110.36

¥2,292.54

Basic earnings per share

¥174.51

¥227.82

Diluted earnings per share

¥173.77

¥227.06

Notes: 1. The Company introduced the BBT-RS (Board Benefit Trust-Restricted Stock). The number of shares of treasury stock at the end of the period includes the Company shares held by the trust for the BBT-RS plan (1,690,526 shares as of March 31, 2026, 1,850,700 shares as of March 31, 2025). In addition, the number of shares of treasury stock deducted in the calculation of the average number of shares outstanding during the period includes the Company shares held by the trust for the BBT-RS plan (1,768,199 shares as of March 31, 2026, 1,061,144 shares as of March 31, 2025).

  1. Basis for the calculation of net assets per share are as follows.

    Fiscal 2024

    Fiscal 2025

    Total net assets (Millions of yen)

    1,176,889

    1,252,593

    Amount to be deducted from the total net

    assets (Millions of yen)

    147,275

    132,089

    (of which share subscription rights

    (Millions of yen))

    (2,540)

    (1,775)

    (of which non-controlling interests

    (Millions of yen))

    (144,734)

    (130,314)

    Net assets attributable to common stock at the end of the fiscal year

    (Millions of yen)

    1,029,614

    1,120,503

    Number of shares of common stock at the end of the fiscal year, which is used to calculate net assets per share

    (Thousands of shares)

    487,885

    488,761

  2. Basis for the calculation of basic earnings per share and diluted earnings per share are as follows.

Fiscal 2024

Fiscal 2025

Basic earnings per share

Net income attributable to owners of parent

(Millions of yen)

85,279

111,299

Amount not attributable to common shareholders

(Millions of yen)

-

-

Net income attributable to owners of parent attributable to common stock

(Millions of yen)

85,279

111,299

Weighted average number of shares of common stock during the year

(Thousands of shares)

488,675

488,544

Diluted earnings per share

Adjustments to net income attributable to owners of parent (Millions of yen)

-

-

Increase in number of shares of common stock

(Thousands of shares)

2,083

1,627

(of which number of share subscription rights)

(Thousands of shares)

(2,083)

(1,627)

Overview of dilutive shares not included in the calculation of diluted earnings per share due to the absence of dilutive effect

-

-

Significant Subsequent Events Not applicable

-