(E23582) Stock Price

The Japan Finance Corporation is a government-affiliated financial institution that provides financing in areas where private financial institutions alone cannot adequately serve. The company's core business is lending to the general public, small and medium-sized enterprises, and agricultural, forestry, and fisheries operators. During crises such as disasters and pandemics, it also provides emergency funding. The government owns all shares, and the company fulfills its public mission by providing low-interest, long-term financing.

The company's customer base is broad, ranging from small business operators to small and medium-sized enterprises, agricultural and fisheries workers, and the general public. Revenue is primarily composed of interest income from loans and insurance premium income from insurance operations. Credit insurance business for credit guarantee associations is also an important revenue source, and the company receives government subsidies and capital injections across its business segments.

Operations are divided into four main segments. The National Life Business provides small-scale business loans and education financing. The Agriculture, Forestry and Fisheries Business offers long-term, low-interest loans to primary industry and food-related businesses. The Small and Medium Enterprise Business provides financing and credit insurance for mid-sized companies. The Crisis Response and Facilitation Business supports the supply of funds to private financial institutions during economic crises and disasters.

The Japan Policy Finance Corporation has formulated its operational plan for fiscal years 2025 through 2027 as a medium- to long-term management strategy, aiming for sustainable growth through expanded lending in priority sectors. Specifically, it plans to increase new business startup loans to 27,000 companies annually, and to provide 3,200 loans for overseas expansion support. In agricultural, forestry, and fisheries sector development, it aims to increase lending to 5,350 farming management entities, setting clear numerical targets to strengthen its policy finance functions.

The company's priority investment areas focus on sectors where private financial institutions face operational challenges: startup support, business succession, overseas expansion, environmental and energy initiatives, and digital transformation support. As a differentiation strategy, it emphasizes personalized support leveraging its network of 152 nationwide branches and a complementary role through collaborative lending with private financial institutions. For social business support, it plans 14,000 annual loans, actively supporting businesses addressing regional challenges.

For new market development, the company targets 1,500 annual loan contracts for startups and new business sectors, supporting innovation creation through strengthened partnerships with venture capital firms and universities. It is also deepening collaboration with local governments, expanding participation in regional revitalization initiatives, and strengthening customer matching services utilizing its nationwide network.

Regarding technological innovation, the company positions digital transformation at the core of organizational operations, advancing migration to external cloud infrastructure and expanding digital services. It is enhancing crisis response capabilities through expanded non-face-to-face services for business continuity during emergencies and strengthened cybersecurity measures. For human capital investment, it has set targets to improve staff digital literacy and achieve a female management ratio of 12% or higher as of April 2028, while also promoting institutional reforms to support diverse work arrangements.