Tokyo Century

Basic Information

Stock Code
8439
Industry
Other financial services
Category Detail
Leasing & Rental
Prefecture
Tokyo
Establishment Year
July 1969
Listing Year
September 2003
Official Website
https://www.tokyocentury.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
HULIC, Nomura Real Estate Holdings, UBE, NEXYZ.Group, Japan Investment Adviser, Fuyo General Lease, Mizuho Leasing, Ricoh Leasing, ORIX, Mitsubishi HC Capital, Chusho Lease, MS&AD Insurance Group Holdings, NEC Capital Solutions

Overview

Tokyo Century is a major Mizuho FG-affiliated leasing company founded in 1969, with strengths in information and communications equipment and auto leasing, and it deploys a variety of financial services both domestically and internationally.

Current Situation

Tokyo Century recorded consolidated sales of approximately 1.3461 trillion yen and net profit of approximately 72.1 billion yen for the fiscal year ended March 2024, boasting top-class scale in the domestic leasing industry. Its mainstays are information and communications equipment leasing and auto leasing, maintaining No. 1 industry share in the information equipment field and No. 3 in the auto leasing field. It has subsidiaries such as Japan Car Solutions and Nippon Rent-a-Car Service, focusing on expanding the auto leasing business. Overseas expansion is aggressive, with 19 bases centered in Asia including China and India, accelerating the establishment of local subsidiaries. Through collaboration with Itochu Corporation, it promotes diversification and diversified funding sources. Toward sustainable management, it advances sustainability activities, and as a medium- to long-term growth strategy, it aims to expand non-leasing businesses such as guarantees and factoring. In recent years, it has ventured into the U.S. autonomous driving sector and logistics DX promotion, strengthening new business opportunity development.

Trivia

Interesting Facts

  • Grew into top-class domestic leasing company through 2009 merger
  • Long-term No. 1 share in information & communications equipment leasing industry
  • First Japanese leasing company to launch leasing business in India
  • Manages over 400,000 auto leasing vehicles
  • Itochu Corporation as major shareholder, characterized by diverse industry collaborations
  • Real estate business via former Kobe Steel subsidiary
  • Company reported for data erasure-related scandal in 2019
  • Overseas sales channels expanded through alliances with multiple foreign leasing firms
  • ICT sector strengthened through JV with NTT Finance
  • Core company in diverse capital alliance structure of domestic leasing industry

Hidden Connections

  • Itochu Corporation as shareholder providing support base for comprehensive trading company group
  • Asia market strategy through partnership with Tata Group
  • Strengthened information & communications equipment leasing through JV with NTT Group
  • Diversification through numerous alliances with financial institutions beyond Mizuho FG
  • Subsidiary Japan Car Solutions jointly invested with Orico
  • Entry into aviation sector through acquisition of Jetstar Japan shares
  • Nippon Rent-a-Car, Japan's largest rental car company, as consolidated subsidiary
  • Large-scale development through collaboration with Kobe Steel former subsidiary in real estate

Future Outlook

Growth Drivers

  • Increasing demand for information & communications equipment leasing domestically and overseas
  • Growth in auto leasing and rental car business
  • Aggressive overseas expansion into Asian markets
  • Expansion of digitalization/DX-related financing
  • Increasing investments in renewable energy sector
  • Expansion in credit guarantees and factoring fields
  • Business efficiency and product innovation through new technologies
  • Stable management through diversified funding capabilities
  • Enhanced corporate value through addressing environmental and social challenges
  • Deepening of group synergies

Strategic Goals

  • Complete transformation into comprehensive finance company
  • Achieve over 30% overseas business sales ratio
  • Advanced vehicle management leasing systems
  • Expansion of sustainable business portfolio
  • Sales sophistication and efficiency through IT/AI utilization
  • Revenue generation in new business areas
  • Development of diverse financial products and services
  • Promotion of initiatives toward net-zero carbon
  • Ongoing improvements in customer and employee satisfaction
  • Strengthened sustained contributions to local communities

Business Segments

Information and Communications Equipment Leasing

Overview
Provides leasing of information and communications equipment for corporations along with related financial services.
Competitiveness
High reliability through strong ties with NTT Group
Customers
  • IT companies
  • Government offices
  • SMEs
  • Large manufacturers
  • Educational institutions
  • Medical institutions
  • Telecom carriers
  • Service industries
  • Financial institutions
  • Logistics companies
Products
  • PC leasing
  • Server leasing
  • Network equipment leasing
  • Cloud-inclusive leasing
  • Communications equipment financing
  • ICT infrastructure services
  • Software leasing
  • Mobile equipment leasing
  • Data center equipment leasing
  • Storage equipment leasing

Auto Leasing

Overview
Vehicle leasing and rental car business for corporations, individuals, and rental car companies.
Competitiveness
Large-scale vehicle management and diverse customer services
Customers
  • Corporate customers (large enterprises, SMEs)
  • Individual customers
  • Rental car operators
  • Local governments
  • Transportation companies
  • Manufacturing companies
  • Distribution industry
  • Sales agents
  • IT companies
  • Service industry
Products
  • Corporate vehicle leasing
  • Personal vehicle leasing
  • Rental car vehicle rentals
  • Vehicle maintenance
  • Vehicle management systems
  • Car sharing
  • Eco-car leasing
  • Short-term corporate contract leasing
  • Long-term contract leasing
  • Vehicle inspection services

Aircraft Leasing & Financing

Overview
Aircraft leasing and financial services for LCCs and zaibatsu-affiliated partners.
Competitiveness
First Japanese leasing company to enter India leasing business
Customers
  • Low-cost carriers
  • Aircraft manufacturers
  • Zaibatsu-affiliated financial groups
  • Overseas leasing companies
  • Air transport operators
Products
  • Aircraft leasing
  • Aviation-related guarantees
  • Aircraft financing
  • Leased aircraft management
  • Leasing consulting

Guarantees & Factoring Business

Overview
Financial support services such as credit guarantees and receivables purchase factoring.
Competitiveness
Broad coverage through diverse credit guarantee networks
Customers
  • SMEs
  • Construction companies
  • Manufacturing companies
  • Service companies
  • Trading companies
  • Distribution industry
Products
  • Credit guarantees
  • Receivables factoring
  • Guarantee loans
  • Credit investigations
  • Risk management

Real Estate Rental & Management Services

Overview
Engages in large-scale redevelopment as well as real estate rental and management.
Competitiveness
Real estate development capabilities through collaboration with Kobe Steel
Customers
  • Large corporations
  • Real estate investment corporations
  • Government offices
  • Commercial facility operators
Products
  • Office rentals
  • Commercial facility leasing
  • Real estate management
  • Redevelopment support
  • Asset management consulting

IT Related Services

Overview
Data erasure and IT asset management services for corporate PCs and servers.
Competitiveness
Advanced data erasure technology ensuring high security
Customers
  • Corporate IT departments
  • Government offices
  • Educational institutions
  • Medical institutions
Products
  • IT asset management
  • Data erasure services
  • IT equipment recycling
  • Cloud leasing
  • IT support

Staffing & Recruitment Business

Overview
Specialized human resources services for IT and clerical positions.
Competitiveness
Reliable recruitment and staffing support system
Customers
  • IT companies
  • Manufacturing industry
  • Clerical positions in general
  • Service industry
Products
  • Personnel introduction
  • Staffing
  • Training programs
  • Career support

Competitive Advantage

Strengths

  • Top-class leasing scale in the industry
  • Strengths in information & communications equipment and auto leasing
  • Diverse funding sources and collaboration with Itochu Corporation
  • Aggressive overseas expansion and local subsidiary establishments
  • Expansion of diverse financial services (guarantees, factoring)
  • Business growth through synergies with group companies
  • Advanced data erasure technology for IT services
  • Broad responsiveness to major customer base

Competitive Advantages

  • Long-term maintenance of No. 1 industry share in information & communications field
  • Diversification in auto leasing field including rental car business
  • First Japanese leasing company entry into India market with Tata Group partnership
  • Expansion strategy for credit guarantees and factoring services
  • Funding and customer base expansion through diverse group affiliates
  • Stable ICT leasing provision through joint venture with NTT Group
  • Capital alliances with Mitsubishi UFJ, Mizuho, Fukuoka FG, and other financial groups
  • Enhanced international competitiveness through multi-regional overseas bases
  • Wide-ranging leasing services from corporations to individuals
  • Integrated services from secure IT asset management to recycling

Threats

  • Maturing domestic leasing market and intensifying competition
  • Revenue risks in overseas business due to exchange rate fluctuations
  • Impacts from regulatory changes and monetary policy
  • Changes in leased equipment due to technological innovations
  • Increased data processing costs from strengthened privacy protections
  • Rise of emerging companies and fintech
  • Stagnation in overseas expansion due to international uncertainties
  • Impacts of resource price fluctuations on equipment investments
  • Credit risks from deteriorating customer financial health

Innovations

2024: Investment in U.S. autonomous driving-related company

Overview
Capital participation in autonomous driving technology via Itochu Corporation to strengthen business development.
Impact
Expectations for new revenue sources through technological innovation

2023: Establishment of new company for logistics DX support and vehicle data utilization

Overview
Collaboration with ride-hailing app 'GO' to promote digitalization in the logistics industry.
Impact
Improved customer satisfaction through logistics efficiency

2022: Expansion of capital and business alliance with Higashi-Gin Lease

Overview
Participation in third-party allotment capital increase of Higashi-Gin Lease in collaboration with Mitsubishi UFJ Bank and Norinchukin Bank.
Impact
Strengthening of group expansion and financial foundation

2021: Establishment of joint venture with NTT Group

Overview
Established NTT・TC Leasing Co., Ltd. and acquired NTT Finance business.
Impact
Expansion of ICT-related leasing business

2020: Acquisition of Nippon Express trading company leasing business spin-off

Overview
Strengthened collaboration by acquiring 49% of issued shares in Nippon Express Leasing & Finance Co., Ltd.
Impact
Service expansion in the logistics industry

Sustainability

  • Expansion of renewable energy-related investments
  • Promotion of environmentally considerate leasing products
  • Support for introducing ESG evaluations for business partners
  • Promotion of waste recycling and secure processing of IT equipment
  • Support for sustainability education in local communities
  • Setting and progress management of carbon neutral goals
  • Diversity & Inclusion (D&I) promotion projects
  • Paper resource reduction through digitalization
  • Systematization of environmental and social risk assessments
  • Expansion of green leasing portfolio