Consolidated Financial Results For the Fiscal Year Ended March 31, PDF Free Download

1. Financial Highlights Financial Highlights Statement of Income Sales Revenues by Reportable Segment Balance Sheet Analysis on Year on Year Change in Ordinary Income Transaction Volume Operating Assets and Interest Bearing Debts FY2017 Consolidated s Forecast Dividend and Dividend Payout Ratio ROA (Return on Assets) 2. s by Operating Segment Business Summary by Operating Segment Balance of Operating Assets by Operating Segment Equipment Leasing Business 1 1 Specialty Financing Business 2 1 Balance of Operating Assets Specialty Financing Business 2 2 Solar Power Generation Business Specialty Financing Business 2 3 Aviation Business Domestic Automobile Financing Business 3 1 s by Subsidiary Domestic Automobile Financing Business 3 2 Fleet of Vehicles under Management International Business 4 1 Balance of Operating Assets International Business 4 2 About CSI Leasing International Business 4 3 s by Region Global Assets Ratio 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 3. Progress on the Third Medium Term Management Plan Summary of the Third Medium Term Management Plan Towards Shift to a High Revenue Business Model Topic (1) Business Alliance with Indonesia s Lippo Group (International Business) Topic (2) Partnership with Grab, Ride hailing Service Provider (International Business) Topic (3) Business Alliance with China s UnionPay Merchant Services (International Business) Topic (4) Joint Venture Establishment with China s Dalian Bingshan Group (International Business) Topic (5) Enhance Automobile Leasing and Financing in ASEAN (International Business) Promote Alliance Strategies with Local Blue Chip Companies (International Business) 4. Appendix Lease Transaction Volume by Type of Equipment ROA and ROE Foreign Exchange Rates Major Domestic Group Companies and Affiliates Major Overseas Group Companies and Affiliates 28 29 30 31 32 33 34 35 37 38 39 40 41 All Rights Reserved, Copyright Tokyo Century Corporation 2

Financial Highlights <Continue earning record high profits> Eight consecutive periods in ordinary income and six consecutive periods in net income * (Billions of yen) FY2015 FY2016 Change % Change FY2016 Forecast Announced on May 11, 2016 Achievement Rate Revenues 940.5 976.1 35.7 3.8% 950.0 102.7% Operating income 65.9 72.0 6.1 9.2% 70.5 102.1% Ordinary income 68.0 73.5 5.5 8.1% 72.0 102.1% Net income attributable to owners of parent 40.0 43.7 3.6 9.0% 42.5 102.7% Mar. 31, 2016 Mar. 31, 2017 Change % Change Total assets 3,317.9 3,579.9 262.0 7.9% Balance of operating assets 2,991.1 3,216.0 224.9 7.5% Net assets 374.9 404.8 30.0 8.0% Shareholders' equity ratio 9.6% 9.9% 0.3pt ROA (Return on asset) 2.1% 2.1% - ROE (Rate of return on equity) 13.1% 12.9% 0.2pt * Calculated from the fiscal year ended March 31, 2009, the period just before the merger All Rights Reserved, Copyright Tokyo Century Corporation 4

Statement of Income (Billions of yen) # FY2015 FY2016 Change % Change Revenues 1 940.5 976.1 35.7 3.8% Costs 2 803.7 823.3 19.7 2.4% Funding cost 3 13.3 17.5 4.2 31.2% Gross profit 4 136.8 152.8 16.0 11.7% SG&A expenses 5 70.9 80.8 9.9 14.0% Personnel expenses 6 40.6 46.1 5.5 13.5% Non personnel expenses 7 29.1 33.5 4.4 15.3% Allowance for doubtful accounts 8 1.2 1.2 0.0 - Operating income 9 65.9 72.0 6.1 9.2% Extraordinary income and losses 10 2.1 1.5 0.6 28.1% Ordinary income 11 68.0 73.5 5.5 8.1% Extraordinary income and losses 12 0.5 0.2 0.2 49.0% Income before income taxes 13 68.5 73.7 5.3 7.7% Income taxes 14 23.2 22.9 0.2 1.0% Net income 15 45.3 50.8 5.5 12.2% Net income attributable to non controlling interests 16 5.3 7.2 1.9 36.0% Net income attributable to owners of parent 17 40.0 43.7 3.6 9.0% Major Factors of Change Ordinary income Increased by 5.5 billion from the previous fiscal year, mainly due to an increase in profit in the domestic automobile financing companies and the consolidated subsidiaries related Equipment Leasing, as well as the consolidation of CSI Leasing Net income attributable to owners of parent Up by 3.62 billion from the previous fiscal year, primarily due to an increase in ordinary income, apart from an increase in net income attributable to non controlling interests All Rights Reserved, Copyright Tokyo Century Corporation 5

Sales Revenues by Reportable Segment Note: Sales revenues (Gross profit before deducting funding cost) (Billions of yen) # FY2015 FY2016 Change % Change Revenues 1 940.5 976.1 35.7 3.8% Leasing 2 808.5 850.6 42.2 5.2% Installment sales 3 81.5 73.6 7.8 9.6% Finance 4 29.3 24.2 5.1 17.3% Other 5 21.3 27.7 6.4 30.1% Costs (excluding funding cost) 6 790.3 805.8 15.5 2.0% Leasing 7 698.4 716.9 18.5 2.6% Installment sales 8 75.8 68.3 7.5 9.9% Finance 9 1.3 0.9 0.4 28.9% Other 10 14.9 19.8 4.9 32.7% Sales revenues 11 150.2 170.3 20.2 13.4% Leasing 12 110.1 133.8 23.7 21.5% Installment sales 13 5.7 5.3 0.3 5.8% Finance 14 28.0 23.3 4.7 16.7% Other 15 6.4 7.9 1.5 23.9% Major Factors of Change Leasing Consolidation of CSI Leasing and a profit growth in the automobile leasing contributed to the growth Finance Decreased due to a reactionary drop from the increased profit in the previous fiscal year associated with successful exit strategies for large real estate financing Other Income from the electric power sales in solar power generation business gained All Rights Reserved, Copyright Tokyo Century Corporation 6

Balance Sheet (Billions of yen) # Mar. 31, 2016 Mar. 31, 2017 Change % Change Total assets 1 3,317.9 3,579.9 262.0 7.9% Current assets 2 2,619.0 2,766.8 147.8 5.6% Non current assets, etc. 3 698.9 813.1 114.2 16.3% Total liabilities 4 2,943.0 3,175.1 232.1 7.9% Current liabilities 5 1,878.2 2,014.2 136.0 7.2% Long term liabilities 6 1,064.8 1,160.8 96.1 9.0% Total net assets 7 374.9 404.8 30.0 8.0% Shareholders' equity 8 320.2 354.7 34.5 10.8% Non controlling interests, etc. 9 54.7 50.1 4.6 8.4% Major Factors of Change Total assets and total liabilities Increased primarily due to the consolidation of CSI Leasing, in addition to a contribution from a growth in operating assets in Domestic Automobile Financing Total net assets Gained due to an increase in retained earnings, which was accompanied by the expanded profits, despite the drop in noncontrolling interests associated with the full acquisition of aircraft leasing companies and a decline in translation adjustments impacted by the yen s appreciation All Rights Reserved, Copyright Tokyo Century Corporation 7

Transaction Volume FY2014 FY2015 FY2016 Change % Change Transaction volume 1,474.1 1,497.9 1,500.0 2.1 0.1% Leasing 688.7 775.1 796.4 21.3 2.8% Installment sales 106.1 91.1 93.5 2.4 2.6% Finance 673.5 617.1 602.8 14.3 2.3% Other 5.7 14.6 7.2 7.4 50.5% Reference: Announced by Japan Leasing Association (FY2016 : Preliminary figure) Capital investment financed by leasing (Billions of yen) (Billions of yen) FY2014 FY2015 FY2016 Change % Change 4,413.2 4,721.3 4,724.0 2.7 0.1% Major Factors of Change Leasing Gained as a result of the consolidation of CSI Leasing, while large operating lease transactions decreased Other Fell in transaction volume of solar power generation business from the previous fiscal year All Rights Reserved, Copyright Tokyo Century Corporation 9

Operating Assets and Interest Bearing Debts (Billions of yen) # Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2017 Change % Change Balance of operating assets 1 2,865.6 2,991.1 3,216.0 224.9 7.5% Leasing 2 1,915.0 2,026.9 2,237.7 210.8 10.4% Installment sales 3 239.4 214.4 201.5-13.0-6.0% Finance 4 699.2 724.4 750.0 25.6 3.5% Other 5 12.0 25.4 26.8 1.4 5.4% Total Assets 6 3,151.9 3,317.9 3,579.9 262.0 7.9% Shareholders' equity 7 292.9 320.2 354.7 34.5 10.8% Shareholders' equity ratio 8 9.3% 9.6% 9.9% 0.3pt Interest bearing debt 9 2,419.9 2,551.5 2,733.0 181.6 7.1% Commercial paper 10 754.6 763.4 800.7 37.3 4.9% MTN 11 51.6 41.1 46.7 5.6 13.6% Corporate bond 12 157.7 155.5 185.4 29.8 19.2% Securitized lease assets 13 61.6 78.1 65.1-13.0-16.6% Short term borrowings 14 470.2 437.2 416.3-20.8-4.8% Long term borrowings 15 924.2 1,076.2 1,218.9 142.6 13.3% Short term funding ratio 16 53.6% 50.4% 47.3% -3.1pt Direct funding ratio 17 42.4% 40.7% 40.2% -0.5pt Major Factors of Change Leasing Increased due to the consolidation of CSI Leasing and the expanded operating assets in Domestic Automobile Financing Finance Increase in financing businesses mainly in Specialty Financing Long term borrowings and Interest bearing debt Consolidation of CSI Leasing led to the increase Commercial paper Increased by the new issuance of commercial paper of Orico Auto Leasing, which was accompanied by the rating from external rating agency Corporate bond Increased due to the issuance of unsecured bonds amounted to 50 billion in April 2016 All Rights Reserved, Copyright Tokyo Century Corporation 10

FY2017 Consolidated s Forecast Ordinary income: Steady performance towards a record high for nine consecutive periods (*) Dividend payout ratio: Up 0.4pt to 24.6% year on year FY2016 FY2017 Forecast Change (Billions of yen) % Change Revenues Operating income Ordinary income Net income attributable to owners of parent Net income per share Total dividends Dividend payout ratio 976.1 980.0 3.9 0.4% 72.0 74.0 2.0 2.8% 73.5 76.0 2.5 3.4% 43.7 45.0 1.3 3.1% 413.51 426.31 12.80 3.1% 100 105 5 5.0% 24.2% 24.6% 0.4pt * From the period just before the merger that is fiscal year ended March 31, 2009, ordinary income is expected to hit a nine year record high. All Rights Reserved, Copyright Tokyo Century Corporation 11

ROA (Return on Assets) Ensuring to further improvement of ROA for the shift to a high revenue business model (*2) ROA (Return on Assets): Ordinary income / Operating assets (*1) x 100 annualized *1 Operating assets (simple average of beginning and end of term balance sheet figures) *2 Based on the simple aggregation of data of the former two companies All Rights Reserved, Copyright Tokyo Century Corporation 13

Business Summary by Operating Segment Equipment Leasing Take advantage of the networks of Mizuho and ITOCHU Group to provide financial services that are centered on leasing information and communication equipment and wide range of property Structure and provide flexible financing programs in cooperation with manufacturers and dealers in addition with the financing subsidiaries of Fujitsu and IHI Develop a marketing strategy incorporating a drastic differentiation approach, and also focus on establishing joint ventures with prime business partners Promote various measures including green businesses that reuse and recycle resources and other measures, to create an environmentally sound, sustainable economy and society Domestic Automobile Financing Operate automobile leasing for corporate customers and individuals, which boasts the leading lineup in the domestic market, to provide the best suited service depending on purpose Nippon Car Solutions Co., Ltd. (mainly for corporate customers): Broaden corporate customer base by leveraging sales channels it shares. Promote to acquire multiple revenue opportunities Nippon Rent A Car Service, Inc. (rental car services): Enhance corporate sales through alliance with Tokyo Century. Focus on capturing inbound visitors demand Orico Auto Leasing Co., Ltd. (mainly for individuals): Strengthen its Koala Club, an agency organization. Cultivate relationships with large affiliated agencies Specialty Financing Provide financial services for shipping, aviation, environment and energy, real estate, structured finance and other sectors, utilizing our highly specialized expertise Shipping: Create new business opportunities along with core partners Aviation: Expand leasing and financing businesses. Plan to increase operating assets from the current approximately 280 billion to 400 billion Environment and Energy: Operate various energy businesses primarily solar power generation business through Kyocera TCL Solar Real Estate: Build a portfolio of prime assets with strategic partners International Business Provide specialized services to meet unique needs of overseas customers by promoting alliance strategies with local blue chip companies and financial institutions and others Expand overseas networks across 37 countries and regions worldwide including East Asia, ASEAN, Americas, Europe and other countries Provide high value added IT equipment leasing by leveraging the CSI Leasing s extensive network in North America, Central and South America and Europe Concluded agreements with local blue chip companies including Lippo Group, Indonesia s leading conglomerate, and Grab, a ridesharing provider in Southeast Asia All Rights Reserved, Copyright Tokyo Century Corporation 15

Balance of Operating Assets by Operating Segment Steady increase in operating assets mainly due to the consolidation of CSI Leasing Note: Figures presented in Specialty Financing and International Business as of the end of March 2016 and 2015 have been rectified due to intersegment business transfer in this fiscal year All Rights Reserved, Copyright Tokyo Century Corporation 16

Equipment Leasing Business 1 1 Promoting a differentiation focused business strategy Rise of Gross Profit from New Transactions (Non Consolidated) Business Partnership with Blue Chip Companies Robot dispatch (rental) business together with Kawasaki Heavy Industries Operate industrial robot dispatch (rental) business jointly with Kawasaki Heavy Industry and provide with services to the companies facing labor shortage Kawasaki Heavy Industries robot, duaro FY2016 s of Major Consolidated Subsidiaries (Billions of yen) Fujitsu Leasing IHI Finance Support Orico Business Leasing Change Change Change Revenues 126.7 3.7 8.2 2.2 3.4 2.9 Gross profit 5.7 0.8 0.9 0.1 0.4 0.3 Ordinary income 3.5 0.8 0.6 0.1 0.2 0.3 Biomass power generation business jointly with IHI and 7 other investing companies A woody biomass power generation company was established in a land held by IHI in Kagoshima City, Kagoshima Prefecture (hold a 25.1% stake in the company) All Rights Reserved, Copyright Tokyo Century Corporation 17

Specialty Financing Business 2 1 Balance of Operating Assets Increase in shipping & aviation, environment & energy and real estate Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2017 Change (Billions of yen) % Change Balance of operating assets 488.1 537.4 702.9 836.7 884.1 47.4 5.7% Shipping and Aviation 130.1 202.9 358.2 423.7 453.7 Percentage 26.7% 37.8% 51.0% 50.6% 51.3% Environment and Energy 7.9 15.7 23.4 37.3 53.7 Percentage 1.6% 2.9% 3.3% 4.5% 6.1% Real estate 279.2 236.7 240.1 292.2 309.6 Percentage 57.2% 44.0% 34.2% 34.9% 35.0% Other 70.9 82.1 81.2 83.5 67.1 Percentage 14.5% 15.3% 11.5% 10.0% 7.6% Notes: 1. Figures presented in Shipping and Aviation at the end of March 2016 and 2015 have been rectified due to intersegment business transfer in this fiscal year. 2. Other includes factoring and securitization of receivables, etc. 30.0 7.1% 16.4 44.0% 17.4 6.0% 16.4 19.6% All Rights Reserved, Copyright Tokyo Century Corporation 18

Specialty Financing Business 2 2 Solar Power Generation Business Operating solar power generation plants in 52 locations Operating Assets and Output of Kyocera TCL Solar Sales Revenues from Electric Power Sales through Kyocera TCL Solar * Sales revenues (Gross profit before deducting funding cost) Operations Outlook Solar power generation plants are in operation in 52 locations as of March 31, 2017 Expected to start operating large sized power generation plant gradually in 2017 All Rights Reserved, Copyright Tokyo Century Corporation 19

Specialty Financing Business 2 3 Aviation Business Accelerating the growth speed in operating assets towards 400 billion Aircraft Leasing Business In October 2014, established aircraft leasing joint venture (JV) companies with US based CIT Group (CIT). Operated aircraft leasing with 33 fleet of aircraft in two years. Through the engagement in the JV, developed a high degree of expertise in the aircraft leasing business including human resource education JV aircraft leasing companies became wholly owned subsidiaries after Tokyo Century acquired 30% shares of the companies from CIT in March 2017 Outlook of Aviation Business Remain focusing on the aviation business, since the market is expected to expand Tokyo Century s expertise on aviation business + Strategic business alliance and partnership Plan to increase operating assets Current Target Approx. 280 billion => Approx. 400 billion All Rights Reserved, Copyright Tokyo Century Corporation 20

Domestic Automobile Financing Business 3 1. s by Subsidiary Three automobile companies gained profits and revenues due to continuing organic growth Nippon Car Solutions (NCS) <Consolidated> FY2015 FY2016 Orico Auto Leasing (OAL) <Non consolidated> FY2015 FY2016 Nippon Rent A Car Service (NRS) <Non consolidated> FY2015 FY2016 Total of Three Companies FY2015 FY2016 (Billions of yen) % Change Revenues 170.3 178.0 39.3 46.6 28.0 31.6 237.6 256.2 7.8% Gross profit 22.8 23.4 2.9 3.6 5.4 5.8 31.1 32.8 5.5% Ordinary income 9.2 10.0 1.1 1.6 2.0 2.2 12.3 13.8 12.2% Mar. 31, 2016 Mar. 31, 2017 Mar. 31, 2016 Mar. 31, 2017 Mar. 31, 2016 Mar. 31, 2017 Mar. 31, 2016 Mar. 31, 2017 % Change Balance of operating assets (*) 292.5 311.6 96.1 122.4 28.3 30.5 416.9 464.5 11.4% FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 FY2015 FY2016 % Change ROA(Return on assets) 3.2% 3.3% 1.3% 1.5% 7.0% 7.5% 3.1% 3.1% - Note: Balance of operating assets in Domestic Automobile Financing Business as of Mar. 31, 2017 ( 458.3 billion) = Total figures of the above three companies ( 464.5 billion) Intercompany transaction amount ( 6.2 billion) Total of Three Companies = Simple sum of three automobile companies' figures All Rights Reserved, Copyright Tokyo Century Corporation 21

Domestic Automobile Financing Business 3 2 Fleet of Vehicles under Management Fleet of vehicles under management raised to approximately 600 thousand (Thousand) All Rights Reserved, Copyright Tokyo Century Corporation 22

International Business 4 1 Balance of Operating Assets Business expansion in the U.S. due to the consolidation of CSI Leasing Mar. 31, 2013 Mar. 31, 2014 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2017 Change % Change East Asia 24.8 31.0 44.8 52.5 45.9 6.6 12.6% ASEAN 46.9 66.6 123.3 121.5 130.8 9.3 7.6% Total of East Asia & ASEAN (a) 71.7 97.6 168.1 174.0 176.6 2.7 1.5% USA (b) 17.5 29.1 35.2 38.2 211.9 173.7 454.8% Global vender 44.2 43.3 44.8 40.5 34.4 6.1 15.0% Total in International Business 133.4 170.0 248.1 252.7 423.0 170.3 67.4% except CSI non recourse loan 133.4 170.0 248.1 252.7 285.6 32.9 13.0% Note: Figures presented in USA, Total in International Business and Total of each region as of the end of March 2016 and 2015 have been rectified due to intersegment business transfer in this fiscal year. (Billions of yen) Total of each region (a)+(b) 89.2 126.7 203.3 212.2 388.5 176.3 83.1% Ratio of Operating Assets by Region USA 19.6% Mar. 31, 2013 89.2 Billion East Asia 27.8% USA 54.5% East Asia 11.8% Mar. 31, 2017 388.5 Billion ASEAN 33.7% ASEAN 52.6% All Rights Reserved, Copyright Tokyo Century Corporation 23

International Business 4 2 About CSI Leasing Providing the world top class service in IT equipment leasing CSI Leasing s Financial s (USD million) FY2015 FY2016 Change % Change Revenues 441.9 466.5 24.6 5.6% Gross profit 178.8 183.7 4.9 2.7% Ordinary income 23.1 25.9 2.8 12.1% Net income 13.4 16.6 3.2 23.9% Operating assets of leasing 1,387 1,456 69 5.0% ROA (except non recourse) 9.7% 11.3% 1.6pt ROA 1.7% 1.8% 0.1pt ROA (except non recourse) = Ordinary income/(operating assets non recourse loan) ROA = Ordinary income/operating assets * CSI Leasing became wholly owned subsidiary in June 2016 * CSI Leasing became wholly owned subsidiary in June 2016 US Largest Independent Leasing Company Ranking Annual transaction volume Company 2014 2015 2014 2015 1 1 CSI Leasing 984.2 1,048.8 2 2 Great America Financial Services 737.7 816.2 3 3 Ascentium Capital 440.0 686.3 5 4 LEAF Commercial Capital 321.1 388.1 10 5 ENGS Commercial Finance 206.0 267.0 Source: Monitor Business Outlook (USD million) Develop the world top class global network Greatly strengthen the support system for the companies close IT vendors both in Japan and overseas for their needs of sales finance Provide the world first class service in IT equipment leasing All Rights Reserved, Copyright Tokyo Century Corporation 24

International Business 4 3 s by Region Achieving steady results in overseas subsidiaries without Forex impact East Asia & ASEAN (Billions of yen) USA (Billions of yen) FY2015 FY2016 Change Forex Impact Without Forex Impact FY2015 FY2016 Change Forex Impact Without Forex Impact Gross profit 5.6 5.4 0.2 0.8 0.6 Gross profit 1.8 12.4 10.7 0.2 10.9 Ordinary income 3.5 3.8 0.3 0.5 0.8 Ordinary income 1.3 2.6 1.3 0.1 1.4 Expand business in East Asia and ASEAN: 7 countries *1 Consolidated subsidiary: 11 companies Equity method affiliate: 7 companies USA Consolidated subsidiary: 2 companies Thailand Malaysia China Taiwan Philippines Singapore CSI Leasing, Inc. Tokyo Century (USA) Inc. Indonesia *1 Hong Kong is included in China and Taiwan is counted as one. All Rights Reserved, Copyright Tokyo Century Corporation 25

Global Assets Ratio Consolidation of CSI Leasing contributed to the growth in global asset ratio Local group companies in the US and global vendors Local group companies in East Asia & ASEAN Shipping and aviation, etc. Notes: 1. Global operating assets: Total of the following (1), (2) and (3) (1) Operating assets of International Business (2) Operating assets of affiliates belong to International Business x Ownership ratio (3) Operating assets from foreign transactions of other operating segments (mainly shipping and aviation business) 2. Global assets ratio: An indicator to measure the ratio of overseas business Global assets / (Consolidated operating assets + Operating assets of affiliates belong to International Business x Ownership ratio) 3. Figures at the end of March 2016 and 2015 have been rectified due to the change of certain standards for calculating totals for Shipping and aviation etc. and intersegment business transfer in this fiscal year. All Rights Reserved, Copyright Tokyo Century Corporation 26

Summary of The Third Medium Term Management Plan Targeting more than 80 billion in consolidated ordinary income for the fiscal year ending March 31, 2019 <Basic Policy> Promote the shift to a high revenue business model focused on asset efficiency in order to lay the foundation for sustainable growth <Management Targets> The Third Medium Term Management Plan FY2015 1st Year (Mar. 31, 2017) FY2016 2nd Year (Mar. 31, 2018) FY2017 Plan Final Year (Mar. 31, 2019) FY2018 Plan Consolidated ordinary income 68.0 bn 73.5 bn 76.0 bn 80.0 bn or or above Consolidated ROA(ordinary income/operating assets) 2.3% 2.4% 2.3% or above Consolidated shareholders' equity ratio 9.6% 9.9% 11.0% All Rights Reserved, Copyright Tokyo Century Corporation 28

Towards Shift to a High Revenue Business Model Aiming to be a company involved in business that lies in the area between domains handled by banks, trading companies and manufacturers Becoming a non banking financial services company by transitioning to a new business domain beyond leasing Pioneer new business fields that combine finance, services and business expertise by advancing these businesses Aiming to be a company involved in business that lies in the area between domains handled by banks, trading companies and manufacturers Management Strategies <Strengthen the Sales Base> (1) Transform to take on new business areas that transcend the conventional concept of leasing (2) Create new values by integrating finance and business (3) Make a Group wide effort to become first in the overall ranking for the automobile finance business (4) Expand overseas businesses by promoting alliance strategies (5) Engage in business planning and development aimed at lasting corporate development <Strengthen the Management Base> (1) Strengthen consolidated management (2) Enhance and reinforce the financial base (3) Raise the level of risk control (4) Bolster development of human resources (5) Strengthen corporate governance All Rights Reserved, Copyright Tokyo Century Corporation 29

Topic (1) Business Partnership with Indonesia s Lippo Group (International Business) Entering the digital and FinTech businesses Business partnership with Lippo Group The digital and FinTech businesses Business environment in Indonesia 1. Business alliance for the digital business 2. Business alliance for the FinTech business including financial services using big data Digital Business E commerce Electronic money services Point program services About Lippo Group FinTech Business Finance services Indonesia s leading national consumer services conglomerate with businesses ranging from real estate, department stores, retailing, financial services, telecommunications, hospitality, healthcare, news media, and IT services. Over the past 60 years, it has established a model for growth, innovation and leadership in industries and new markets. Low rate of bank account holders High rate of smartphone users Strength of Lippo Group Lippo has already built up customer base through its brick and mortar stores including department stores, shopping malls and others Lippo Group entered the e commerce business by launching Matahari Mall in 2015 Tokyo Century is engaged in new business operations primarily finance along with Lippo Group, which is attempting to merge brickand mortar and online stores All Rights Reserved, Copyright Tokyo Century Corporation 30

Topic (2) Partnership with Grab, Ride hailing Service Provider (International Business) Entering into the ridesharing business growing ever faster in Southeast Asia Business partnership with Grab Concluded a strategic partnership agreement with Grab, aride hailing service company, to jointly work on automobile leasing and rental services About Grab Providing ride hailing services using an application in Southeast Asia The largest ride hailing service company in Southeast Asia Potentiality in ride hailing service in ASEAN Low transportation facility usage and automobile ownership Market size for the ride hailing and ridesharing services are expected to expand Grab s business locations Singapore Indonesia Philippines Malaysia Thailand Vietnam Core business Private car hailing Motorbike hailing Taxi hailing Other business Ridesharing Goods and food delivery Food delivery Payment system and others Purpose of business alliance 1. Enter the fast growing ridesharing business through the business partnership with Grab, the ridesharing market leader 2. Jointly promote the automobile leasing and rental businesses targeting the registered Grab drivers All Rights Reserved, Copyright Tokyo Century Corporation 31

Topic (3) Business Alliance with China UnionPay Merchant Services (International Business) Providing finance and services utilizing big data, through alliances with China UnionPay Merchant Services (China UMS) Overview of the business alliance Tokyo Century Leasing China Corporation, Tokyo Century s subsidiary in China, will provide leasing services on RICH, China UMS s online financial service platform for merchants Purpose of the business alliance Utilize the strengths of both companies and expand businesses Tokyo Century China UMS Provide leasing services China UMS s e commerce website Leasing and finance services expertise Big data owned by China UMS, including card settlement information RICH, a financial service platform for merchants About China UMS The largest card payment service operator in China Operate in 337 cities nationwide 6.49 million participating merchants 8.11 million POS terminals Jointly provide equipment leasing and automobile leasing services over the Internet for China UMS merchants 1. Enhance the range of financial services available to China UMS s 6.49 million merchants 2. Tokyo Century will also introduce good and distinct Japanese equipment and products on RICH platform in order to support Japanese companies doing business in China All Rights Reserved, Copyright Tokyo Century Corporation 32

Topic (4) Joint Venture Establishment with China s Dalian Bingshan Group (International Business) Enhancing the financing system of Dalian Bingshan Group (DBG) core products About Dalian Bingshan Group (DBG) Chinese government affiliated company China s largest refrigeration and air conditioning equipment manufacturer Core product Industrial refrigeration and freezing equipment Various air conditioners Beverage vending machines Background to the establishment Customer Apart from local companies, the company deals with various Japanese companies including, Panasonic Fuji Electric DBG and Tokyo Century s subsidiary in China had businesses primarily on vending machine financing in the past DBG planned to establish a new leasing company internally, to promote its own products Established a joint venture company, for which Tokyo Century Group provides leasing and financing expertise About the JV (new company) Tokyo Century Group acquired a 40% stake in the new company Tokyo Century s equity method affiliate Purpose of the establishment Promote sales of DBG s core products The new company is primarily engaged in vendor finance business DBG Core products Vendor finance Sale promotion Tokyo Century Provide with leasing and finance expertise All Rights Reserved, Copyright Tokyo Century Corporation 33

Topic (5) Enhance Automobile Business in ASEAN (International Business) Enhancing automobile business in Thailand and Malaysia Acquired Automobile Leasing Business from AEON Financial Service s group company Leverage the Nippon Rent A Car brand to enhance the automobile leasing business Acquired automobile leasing operations and others from ACS Capital Corporation (ACSC), a consolidated subsidiary of AEON Financial Service Established a company dedicated to automobile leasing in Thailand to develop automobile leasing business in the country TISCO Tokyo Leasing s automobile leasing business is considered to be transferred to the new automobile leasing company in the future Fleet of vehicles under management has increased to a total of 4,500 Acquired from ACSC Fleet of vehicles: Approximately 2,500 (including lease receivables) Fleet of vehicles: Approximately 2,000 Further enhance businesses in ASEAN, where continuous business growth is expected Tokyo Century s subsidiary in Malaysia carries out automobile leasing operations under the name of Nippon Rent A Car Leasing leveraging the Nippon Rent A Car brand Nippon Rent A Car Leasing Tokyo Century Capital (Malaysia) Sdn. Bhd. Purpose of the business alliance leveraging the Nippon Rent A Car brand 1. Improve recognition of the automobile leasing business in Malaysia 2. Promote automobile leasing to inbound visitors including for sightseeing and on business from Malaysia All Rights Reserved, Copyright Tokyo Century Corporation 34

Promote Alliance Strategies with Local Blue Chip Companies (International Business) Expand overseas businesses by promoting alliance strategies with local partners Concluded a strategic business agreement with China UnionPay Merchant Services (China UMS), the largest card payment service operator in China. Jointly provide equipment leasing and automobile leasing services with China UMS for China UMS merchants in the future Provide vendor finance subject to the major products of DBG and DBG Group, China s largest refrigeration and air conditioning equipment manufacturer India: Leasing business in India with TATA Capital Invested in a government affiliated leasing company in Suzhou City, China Thailand: Leasing business with TISCO Group, a local leading bank group Taiwan: Leasing business with Uni President Enterprises Group, the largest food company Philippines: Leasing business with BPI, a leading bank Thailand: Engage in vendor financing business along with Hitachi Construction Machinery Group Concluded a strategic partnership with Grab Inc., the ride hailing giant providing services across six countries in Southeast Asia, to enter into ridesharing service business Indonesia: Engage in vendor financing business along with Hitachi Construction Machinery Group Indonesia: Concluded a strategic partnership agreement with Lippo Group, a major conglomerate, on the FinTech business and others All Rights Reserved, Copyright Tokyo Century Corporation 35

Lease Transaction Volume by Type of Equipment Consolidated (exclude overseas subsidiaries) FY2016 IT related Office Industrial/ Machine Tools Construction Transportation Medical Commerce/ Services Others Total Overseas Subsidiaries (Billions of yen) 257.0 20.9 35.4 5.6 208.9 6.8 38.4 62.7 635.7 160.7 796.4 Total Percentage 40% 3% 6% 1% 33% 1% 6% 10% 100% Y o Y Percentage 4.9% 25.2% 23.0% 41.2% 14.7% 22.2% 0.5% 43.8% 0.8% 20.0% 2.8% Reference: Leasing Industry Statistics (Capital investment financed by leasing, announced by Japan Leasing Association, Preliminary figure) Industrial/ Commerce/ IT related Office Construction Transportation Medical Others Machine Tools Services FY2016 (Billions of yen) 1,427.7 392.7 653.1 156.2 632.1 240.1 579.7 642.4 4,724.0 Percentage 30% 7% 14% 3% 13% 5% 12% 14% 100% Total Y o Y Percentage 2.4% 0.9% 9.0% 2.5% 9.8% 3.0% 2.7% 3.8% 0.1% All Rights Reserved, Copyright Tokyo Century Corporation 37

ROA and ROE ROA (Return on Assets) ROE (Rate of Return on Equity) ROA ROE 2.1% 2.3% 2.2% 2.3% 2.4% 14.0% 13.9% 12.5% 13.1% 12.9% FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016 ROA (Return on Assets) Ordinary income / Operating assets (Simple average of beginning and end of term balance sheet figures) X 100, annualized ROE (Rate of return on Equity) Net income attributable to owners of parent / Shareholders equity (simple average of beginning and end of term balance sheet figures) X 100, annualized All Rights Reserved, Copyright Tokyo Century Corporation 38

Foreign Exchange Rates Yen Exchange Rate (end of term) (Yen) Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Change % Change CNH 19.34 18.34 16.76 1.58 8.6% SGD 91.10 85.35 80.62 4.73 5.5% THB 3.65 3.35 3.25 0.10 3.0% IDR 0.0097 0.0088 0.0087 0.0001 1.1% MYR 34.44 28.13 26.00 2.13 7.6% USD 120.53 120.54 116.53 4.01 3.3% Yen Exchange Rate (term average) FY2014 FY2015 FY2016 (Jan. Dec.) (Jan. Dec.) (Jan. Dec.) Change % Change CNH 17.18 19.23 16.36 2.87 14.9% SGD 83.49 88.14 78.74 9.40 10.7% THB 3.26 3.54 3.08 0.46 13.0% IDR 0.0089 0.0091 0.0082 0.0009 9.9% MYR 32.34 31.18 26.27 4.91 15.7% USD 105.79 121.11 108.79 12.32 10.2% (Yen) All Rights Reserved, Copyright Tokyo Century Corporation 39

Major Overseas Group Companies and Affiliates Specialty Financing Location U.S. Ireland Overseas Group Company Main Business Operations Tokyo Century TC Skyward Aviation U.S., Inc. Aviation leasing and finance 100% TC Realty Investments Inc. Real estate investment 100% GA Telesis, LLC Provider of products, services and solutions * to the commercial aerospace industry 20% TC Skyward Aviation Ireland Limited Aviation leasing and finance 100% TC Aviation Capital Ireland Limited Aviation financing business 100% International Business Shareholders Location China Overseas Group Company Main Business Operations Tokyo Century Shareholders Tokyo Century Leasing China Corporation General leasing 80% ITOCHU Group: 20% Tokyo Century Factoring China Corporation Factoring services 100% Tong Sheng Finance Leasing Co., Ltd. * Automobile and equipment leasing 49% Uni President Enterprises Group: 51% Dalian Bingshan Group Hua Hui Da Financial Leasing Co., Ltd. * Finance and general leasing 40% Dalian Bingshan Group: 60% Suzhou New District Furui Leasing Co., Ltd. * Finance and general leasing 20% Suzhou government affiliated companies: 75% Hong Kong Tokyo Leasing (Hong Kong) Ltd. General leasing 100% Taiwan President Tokyo Corporation * Automobile leasing and general leasing 49% Uni President Enterprises Group: 51% Singapore Tokyo Century Leasing (Singapore) Pte. Ltd. General leasing 100% Malaysia Tokyo Century Capital (Malaysia) Sdn. Bhd. General leasing 100% TISCO Tokyo Leasing Co., Ltd. General leasing 49% TISCO Financial Group: 49% Thailand HTC Leasing Co., Ltd. Construction equipment finance 70% Hitachi Construction Machinery Group: 30% TC Advanced Solutions Co., Ltd. Reverse factoring and other services 59% TC Car Solutions (Thailand) Co., Ltd. Financing and services related to automobiles 97% PT. Century Tokyo Leasing Indonesia General leasing 85% PT. Sinar Mas Multiartha Tbk.: 15% PT. TCT Indonesia General trading company 100% Indonesia ITOCHU Group: 50% PT. Hexa Finance Indonesia * Construction equipment finance 20% Hitachi Construction Machinery Group: 30% PT. Big Ecommerce Bersama * B to G and B to B e commerce operation 20% Lippo Group: 80% Philippines BPI Century Tokyo Lease & Finance Corporation * General leasing 49% Bank of the Philippine Islands: 51% U.S. CSI Leasing, Inc. IT equipment leasing 100% Tokyo Century (USA) Inc. General leasing 100% * Equity method affiliate Columns shown in blue were added this fiscal year All Rights Reserved, Copyright Tokyo Century Corporation 41

Any statements in this document, other than those of historical facts, are forward looking statements about the future performance of Tokyo Century Corporation and its Group companies, which are based on management s assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts. All numerical terms and names presented in this report conform to the short scale numerical system. (i.e., billion = 10 9 and trillion = 10 12 ) Inquiries IR Office Tel:+81 3 5209 6710 Web site: https://www.tokyocentury.co.jp/en/ All Rights Reserved, Copyright Tokyo Century Corporation

Consolidated Financial Results For the Fiscal Year Ended March 31, 2017