Hitachi Capital Corporation (E04779) Stock Price

Hitachi Capital is a financial services company within the Hitachi Group that provides comprehensive financial services to meet the diverse financing and capital investment needs of corporations and individuals. Leveraging partnerships with Hitachi Group companies, including Hitachi, Ltd., the company offers a wide range of financial solutions including leasing, installment sales, insurance, and trust services.

The company serves a diverse customer base ranging from corporations making capital investments to individual consumers, with revenues primarily derived from interest income and fee income. Building on cooperative relationships with Hitachi Group manufacturing and sales companies, the company establishes a stable customer base by providing financial services linked to product sales.

The company's business is divided into six segments: domestically, it operates "Account Solutions" and "Vendor Solutions," while internationally, it manages regional operations in "Europe," "Americas," "China," and "ASEAN." Account Solutions provides comprehensive financial services tailored to individual customer needs, Vendor Solutions offers financial services that support sales promotion for partner companies, and international operations deploy diverse financial services adapted to regional characteristics.

Hitachi Capital aims to become a "social value creation company." In its medium-term management plan for fiscal years 2019 through 2021, the company targets pretax profit of 55 billion yen, asset efficiency of 1.7%, and capital efficiency of 9%. The company pursues stable growth at an average annual rate of 5 to 8% over the medium to long term, with future targets of asset efficiency exceeding 2% and capital efficiency exceeding 10%.

The company has designated four priority investment sectors: "Environment and Energy," "Mobility," "Life," and "Sales Finance." It is shifting from traditional business toward higher-margin fields. In the Environment and Energy business, it operates solar power generation projects and deploys energy-saving services. In Mobility, it provides solutions for electric vehicles and new mobility services. In Life, it is strengthening initiatives in urban development and healthcare. For domestic operations, the company plans to increase the operating asset ratio of priority businesses by 5 percentage points by fiscal year 2021.

For global expansion, the company is deepening regional strategies with targets of average annual growth of 8% or more in Europe, 15% or more in the Americas, 5% or more in China, and 20% or more in ASEAN. In Europe, it will pursue stable growth in UK operations while expanding Mobility business on the continent. In the Americas, it will wind down large-scale factoring operations while focusing on energy-saving services and IT-related sales finance. In ASEAN, it is considering expansion into new markets including the Philippines and Australia.

The company is advancing digital transformation to improve operational efficiency and building sustainable growth foundations through ESG management and strengthening non-financial capital. Beyond process improvements and productivity gains from IT investment, the company aims to create new business models through stronger partnerships with partner companies. For shareholder returns, the company plans to raise its dividend payout ratio to approximately 40%.