(E31658) Stock Price

Showa Lease is a comprehensive leasing company that provides equipment and asset leasing, installment sales, and various financial services. The company operates as a corporate group with 55 subsidiaries, delivering financial services across a broad range of business areas. Its core services include leasing and installment sales of diverse equipment, ranging from office automation equipment to industrial machinery and medical devices.

The company's revenue structure is built on recurring income from lease payments and installment sales, establishing stable business relationships primarily with corporate clients. It also pursues revenue diversification through multifaceted financial services, including large-scale projects for aircraft and vessels, as well as factoring services for medical billing receivables and trade receivables.

The business is organized into three segments: "Leasing and Installment Sales," "Finance," and "Other." The Leasing and Installment Sales segment handles a wide range of equipment including machine tools, construction machinery, transportation equipment, and commercial equipment. The Finance segment provides financing for aircraft and vessels, along with various receivables factoring services. The Other segment offers ancillary services such as sales of lease-expired assets, insurance agency operations, and real estate fund formation, delivering comprehensive financial solutions.

Showa Lease is implementing a three-year medium-term business plan from fiscal 2022 through fiscal 2024, based on the medium-term vision of its parent company, SBI Shinsei Bank Group. Under the basic policy of "Be a Partner," the company aims to become a trusted partner to mid-sized and small enterprises through close dialogue. The company has set numerical targets of 6 trillion yen in operating assets and 15.5 billion yen in gross operating profit by the end of fiscal 2024. These targets support the group-wide strategy to achieve consolidated net profit of 70 billion yen.

The priority strategy positions nationwide lease and installment financing as core business while focusing on three strategic business areas. In specialty finance, the company pursues large-scale projects such as aircraft and ship financing. In partner business, it strengthens alliances with other companies. In asset business, it expands revenue through effective asset utilization. This approach builds a comprehensive financial solutions platform that extends beyond traditional leasing and creates competitive differentiation.

The company operates in a challenging environment where the overall lease market is contracting due to changes in lease accounting standards and tax reforms, while competition intensifies. Creating new revenue opportunities and deepening relationships with existing customers have become urgent priorities. The company is developing financial products tailored to the diverse funding needs of mid-sized and small enterprises. Business expansion into non-lease financial services—including accounts receivable factoring and real estate fund operations—is positioned as an important growth strategy.

Organizationally, the company is strengthening competitiveness through structural improvements, focusing on operational efficiency, enhanced headquarters functions, and strengthened risk management. Simultaneously, the company is investing in talent development that improves customer satisfaction, continuing workplace reforms, and fostering a corporate culture that encourages value creation. These efforts build a sustainable management foundation for long-term growth.