Consolidated Financial Results
For the Fiscal Year Ended March 31, 2024
May 14, 2024
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Progress of Medium-Term Management Plan 2027
Executive Summary | 4 |
FY2023 Financial Highlights and FY2024 Forecast | 5 |
FY2023 Net Income by Operating Segment | 6 |
FY2024 Results Forecast | 7 |
Results and Challenges of Each Operating Segment for | 8 |
Achieving Medium-Term Management Plan 2027 | |
Shareholder Returns (Dividend) Policy | 9 |
Performance of NTT TC Leasing | 10 |
Improved Profitability of Car Rental Business | 11 |
ACG's Growth Strategies | 12 |
CSI's Growth Strategies | 13 |
Data Center Businesses with the NTT Group | 14 |
Overseas Business Development Approach of | 15 |
Environment-Related Businesses |
Reference Material (1) Results by Operating Segment
Results of Equipment Leasing | 17 |
Results of Automobility | 18 |
Results of Specialty Financing | 19 |
Results of International Business | 20 |
Results of Environmental Infrastructure | 21 |
Breakdown of YoY Changes in Net Income (Loss) | 22 |
Ordinary Income by Operating Segment | 23 |
Balance of Segment Assets by Operating Segment | 24 |
Reference Material (2) Topics
Quarterly Changes in Results by Subsidiary and | 26 |
Affiliate in Automobility | |
Aviation Business ACG's Earnings Power Changes | 27 |
ACG's Financial Performance (1) | 28 |
ACG's Financial Performance (2) | 29 |
ACG's Capital Procurement Activities | 30 |
ACG's Portfolio | 31 |
Real Estate Business Portfolio Strategy | 32 |
CSI's Performance | 33 |
CSI's Global Strategies | 34 |
Reference Material (3)
Actions for Realizing Management That Emphasizes Cost of Capital and Stock Price
ROE and P/B Ratio | 36 |
Initiatives for Improving the P/B Ratio | |
37 | |
Reference Material (4)
Promotion of Collaboration with Partner Companies
Status of Business Collaboration with the NTT Group | 39 |
Collaboration with ITOCHU Corporation | 40 |
Reference Material (5)
Highlights of Medium-Term Management Plan 2027
Management Targets Financial and Non-financial Targets | 42 |
Balance Sheet Management | 43 |
Reference Material (6) Financial Data | |
Statement of Income | 45 |
Balance Sheet | 46 |
Interest-Bearing Debt | 47 |
Balance of Segment Assets and Transaction Volume in | 48 |
Automobility | |
Balance of Segment Assets in Specialty Financing | 49 |
Balance of Segment Assets in International Business | 50 |
Breakdown of Ordinary Income | 51 |
(Core earnings, gain on sales, impairment, etc.) | |
Breakdown of Ordinary Income by Operating Segment | 52 |
(Core earnings, gain on sales, impairment, etc.) | |
Major Group Companies (Domestic) | 53 |
Major Group Companies (Overseas) | 54 |
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Progress of Medium-Term Management Plan 2027
All Rights Reserved, Copyright © Tokyo Century Corporation | 3 |
Executive Summary
Fiscal 2023
- Net income hit a record high of ¥72.1 billion (up ¥67.4 billion YoY), and the year-end dividend will be increased by ¥2 to ¥ 52 compared to the initial plan.
- Increased profits in all operating segments and started smoothly as the first year of Medium-Term Management Plan 2027.
- Ensured collaboration with the NTT Group-NCS and NTT TC Leasing achieved record-breaking earnings. Facilitated collaboration of data center businesses that are expected to expand the US market with AI.
- Initiatives for improving asset efficiency (ROA 1.2%) and capital efficiency (ROE 8.8%) remain challenges.
Achieved a V-shaped recovery and will return to a growth track
Medium-Term Management Plan 2027
Strengthen investment for growth in all segments | Net income ¥100.0 billion | |||||||||||||||||
in light of Medium-Term Management Plan 2027 and its future | ||||||||||||||||||
Record high | ||||||||||||||||||
Changes in net income attributable to owners of parent and P/B ratio | ¥72.1 billion | |||||||||||||||||
Expanded profitability by actively | 56.3 | Impact of COVID-19 and | ||||||||||||||||
Russia's invasion of Ukraine | ||||||||||||||||||
investing in growth areas | ||||||||||||||||||
Net income | 1.8 | 1.6 | ||||||||||||||||
(Billions of yen) | 1.2 | 1.3 | 1.4 | |||||||||||||||
1.2 | 1.2 | |||||||||||||||||
23.6 | 1.1 | 0.8 | 0.9 | |||||||||||||||
0.7 | ||||||||||||||||||
P/B ratio | 0.9 | |||||||||||||||||
0.9 | ||||||||||||||||||
(Times) | ||||||||||||||||||
0.7 | 4.8 | |||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | (FY) |
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FY2023 Financial Highlights and FY2024 Forecast
Net income for fiscal 2024 is forecast to be a record-breaking ¥80.0 billion
(Billions of yen) | ||||||||
FY2022 | FY2023 | FY2023 | FY2024 | |||||
Change | Change | |||||||
Result | Forecast | Result | Forecast | |||||
Ordinary income | 106.2 | 110.0 | 117.3 | 11.1 | 125.0 | 7.7 | ||
Net income (loss) attributable | 4.8 | 70.0 | 72.1 | 67.4 | 80.0 | 7.9 | ||
to owners of parent | ||||||||
EPS | ¥9.74 | ¥142.97 | ¥147.32 | ¥137.58 | ¥163.38 | ¥16.06 | ||
Annual dividends | ¥35.75 | ¥50.00 | ¥52.00 | ¥16.25 | ¥58.00 | ¥6.00 | ||
Payout ratio | 367.1% | 35.0% | 35.3% | -331.8pt | 35.5% | 0.2pt | ||
ROA (Net income / Total assets) | 0.1% | - | 1.2% | 1.1pt | ||||
ROE(Net income / Shareholders' equity) | 0.7% | - | 8.8% | 8.1pt | ||||
Average foreign exchange rate (USD1) | ¥131.63 | ¥140.67 (Foreign exchange rate for January-December | ||||||
for major overseas subsidiaries) | ||||||||
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2024 | ||||||
Forecast | ||||||||
Change | ||||||||
Balance of segment assets | 5,363.8 | - | 5,720.4 | 356.7 | ||||
Shareholders' equity | 761.6 | - | 872.2 | 110.6 | ||||
Shareholders' equity ratio | 12.5% | - | 13.5% | 1.0pt | ||||
Foreign exchange rate at quarter end (USD1) | ¥132.70 | ¥141.82 | (Foreign exchange rate for major overseas | |||||
subsidiaries as of the end of December) | ||||||||
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FY2023 Net Income by Operating Segment
Net income increased ¥67.4 billion YoY primarily due to the recovery of Specialty Financing and International Business, as well as the growth of Automobility
Net income attributable to owners of parent | ROA | |||||||||||
(Net income / Segment assets) | ||||||||||||
(Billions of yen) | ||||||||||||
FY2022 | FY2023 | FY2023 | FY2023 | |||||||||
Result | Result | Change | Initial Forecast | % Achievement | Result | Change | ||||||
Equipment Leasing | 22.9 | 24.2 | 1.3 | 24.0 | 101% | 1.9% | 0.2pt | |||||
16.7 | 3.1% | |||||||||||
Automobility | 12.1 | 4.5 | 13.0 | 128% | 1.1pt | |||||||
30.0 | 1.1% | |||||||||||
Specialty Financing | -19.1 | 49.1 | 26.0 | 115% | - | |||||||
11.0 | 1.5% | |||||||||||
International Business | -5.9 | 16.9 | 14.0 | 78% | - | |||||||
Environmental | 0.2 | 1.9 | 1.7 | 4.0 | 47% | 0.7% | 0.6pt | |||||
Infrastructure | ||||||||||||
Other | -5.4 | -11.5 | -6.1 | -11.0 | 104% | |||||||
Total (Net income) | 4.8 | 72.1 | 67.4 | 70.0 | 103% | 1.3% | 1.2pt | |||||
ROA (Net income / Total assets) | ||||||||||||
1.2% | 1.1pt | |||||||||||
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FY2024 Results Forecast
Seeking to set a new record high by accelerating profitability initiatives in all operating segments
Net income attributable to owners of parent
(Billions of yen)
FY2023 | FY2024 | |||
Result | Forecast | Change | Major factors for change (Plan) | |
Equipment Leasing | 24.2 | 25.0 | 0.8 | (+) Collaborative businesses with partners, accumulation of quality assets by |
improving value of existing businesses | ||||
(-) Dissipation of one-time factors in FY2023 | ||||
(+) NRS's further increase in income (strategies for improving branches, increase in | ||||
Automobility | 16.7 | 18.0 | 1.3 | passenger demand, including inbound tourism) |
(-) Dissipation of gain on sales of used vehicles in FY2023, decrease in income | ||||
received from OAL | ||||
Specialty Financing | 30.0 | 34.0 | 4.0 | (+) ACG's increase in income (increase in gain on sale of aircraft) |
(-) Dissipation of gain on sales of vessels in shipping business in FY2023 | ||||
International Business | 11.0 | 13.0 | 2.0 | (+) Increase in income due to advancing CSI's global strategies |
(-) Dissipation of gain on sales in FY2023, procurement cost burden of data centers | ||||
Environmental | 1.9 | 2.5 | 0.6 | (+) Accumulation of new projects, dissipation of one-time losses in FY2023 |
(-) Cost burden associated with new overseas investment projects, output control | ||||
Infrastructure | ||||
related to power generation businesses | ||||
Other | -11.5 | -12.5 | -1.0 | |
Total | 72.1 | 80.0 | 7.9 | |
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Results and Challenges of Each Operating Segment for Achieving Medium-Term Management Plan 2027
Automobility achieved the planned amount due in part to NRS's contributions, and Specialty and International Business strive to further enhance earnings power
Comparison of FY2023 Result and FY2027 Forecast | |||||
(Net income attributable to owners of parent) | (Billions of yen) | ||||
FY2023 | FY2027 | ||||
Result | Plan | Change | Fiscal 2023 results and challenges for achieving the plan | ||
Equipment Leasing | 24.2 | 29.0 | 4.8 | NTT TC Leasing's record-breaking income, portfolio transformation (PX) | |
TC's standalone earnings power, joint businesses with partners | |||||
Automobility | 16.7 | 16.0 | -0.7 | Achievement of the plan due to large profit contributions from NRS, PX | |
NCS: Accumulation of quality assets with organic and non-organic methods | |||||
NRS: Strategies for improving branches, capture of inbound demand | |||||
Specialty Financing | 30.0 | 48.0 | 18.0 | ACG's recovery, efficient asset management of shipping and real estate | |
Aviation: Efficient asset management and high-quality portfolio | |||||
Real estate: Active investment in logistics facility and data centers | |||||
International Business | 11.0 | 21.0 | 10.0 | Participation in data center businesses with the NTT Group in US | |
CSI: Global strategies leveraging M&A | |||||
Improvement of business models, including bolstering global partnerships | |||||
Environmental | Acquisition of UK's large solar power plants for growth over the long term | ||||
1.9 | 7.5 | 5.6 | Earnings expansion from strategic M&A, overseas renewable energy, | ||
Infrastructure | storage battery businesses | ||||
Increase in new earnings opportunities using asset management services | |||||
Other | -11.5 | -21.5 | -10.0 | ||
Total | 72.1 | 100.0 | 27.9 | ||
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Shareholder Returns (Dividend) Policy
- Provide stable, long-term returns to shareholders, which is our basic policy
- Maintain stable returns to shareholders during the period of the Medium-Term Management Plan 2027 while balancing with growth investment and financial base
While adopting a progressive dividend policy as our basic stance, aim to increase dividends per | |||
¥80.00 | share with profit growth and target a payout ratio of approximately 35% | ||
Plan to increase dividends | 120.0% | ||||||||||||
¥70.00 | with profit gro | w | th | ||||||||||
Payout ratio | Dividends* | (Forecast) | |||||||||||
100.0% | |||||||||||||
¥58.00 | |||||||||||||
¥60.00 | |||||||||||||
* Conducted a 4-for-1 stock split of common stock effective January 1, 2024. | ¥52.00 | ||||||||||||
Dividends shown in the graph below are figures after retroactively | |||||||||||||
¥50.00 | applying the amendments resulting from the impact of the stock split. | 80.0% |
¥40.00 | ¥35.75 | ¥35.75 | |||||||||||||||||
¥34.00 | ¥34.50 | 60.0% | |||||||||||||||||
¥31.00 | 367% | ||||||||||||||||||
¥30.00 | ¥28.50 | ||||||||||||||||||
¥25.00 | |||||||||||||||||||
40.0% | |||||||||||||||||||
¥20.00 | ¥20.00 | ||||||||||||||||||
¥16.25 | 34.2% | 34.7% | 35.3% | 35.5% | 35.0% | 35.0% | 35.0% | ||||||||||||
¥13.00 | |||||||||||||||||||
¥10.00 | ¥11.00 | ¥12.00 | 25.1% | 25.9% | 20.0% | ||||||||||||||
¥10.00 | ¥8.00 | 20.1% | 21.1% | 24.2% | 23.5% | ||||||||||||||
18.0% | 17.9% | ||||||||||||||||||
17.6% | 16.7% | ||||||||||||||||||
13.4% | |||||||||||||||||||
¥0.00 | 0.0% | ||||||||||||||||||
FY2009 | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | FY2027 |
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Performance of NTT TC Leasing
Consistent increases in NTT TC Leasing's segment assets and equity in earnings of affiliates
Financial Results (Fiscal Year Ended March 31, 2024)
(billions of yen) | |||||
FY2022 | FY2023 | ||||
Result | Result | Change | % Change | ||
Revenues | 384.7 | 376.0 | -8.8 | -2% | |
Gross profit | 34.2 | 38.0 | 3.7 | 11% | |
Operating income | 17.4 | 20.0 | 2.5 | 14% | |
Ordinary income | 18.6 | 21.4 | 2.9 | 15% | |
Net income attributable | 12.8 | 15.0 | 2.2 | 17% | |
to owners of parent | |||||
Equity in earnings | 6.3 | 7.5 | 1.1 | 18% | |
of affiliates(TC) | |||||
Mar. 31, | Mar. 31, | Change | % Change | ||
2023 | 2024 | ||||
Segment assets | 1,780.7 | 1,962.0 | 181.3 | 10% | |
¥7.5 billion
¥6.3 billion ¥1.1 billion
FY2022 | FY2023 |
Result | Result |
Changes in Segment Assets
35,000 | ||
30,000 | ||
25,000 | ¥1,800 | ¥2,000 |
billion | ||
billion | ||
20,000 | ||
¥1,200 | ||
15,000 | billion | |
10,000 | ||
5,000 | ||
0 |
At the start of | March 31, | March 31, | In future | |||
operations in | 2023 | 2024 | ||||
July 2020 | ||||||
Promotion of co-creation for expanding segment assets
Environment & | Real Estate | Global |
Energy | Business | |
Financing for solar and | Enhancement of | Financing for overseas data |
biomass power | relationship between | center businesses between |
generation businesses | NTT and TC | the NTT Group and TC |
In addition to low-cost fund procurement, NTL focuses on expanding its assets through business alliance
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Tokyo Century Corporation published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 07:13:11 UTC.