(E40299) Stock Price

Isuzu Leasing Service is a leasing and maintenance specialist company for commercial vehicles within the Isuzu Group. The company primarily provides comprehensive services necessary for the maintenance and management of commercial vehicles to customers who purchase and lease Isuzu automobile products, ranging from vehicle leasing to inspections, maintenance, and repairs. The company operates three core business pillars: maintenance leasing, finance leasing, and outsourced maintenance services.

The company's primary customers are businesses and operators that use commercial vehicles from Isuzu Motors and UD Trucks. Revenue is composed of vehicle lease fees and maintenance service fees. The business model involves purchasing vehicles when customers submit lease applications and then leasing them out. The company also operates as a general insurance agency, expanding its revenue base through services related to its leasing operations.

The company's business is divided into two segments: "Automobile Leasing Business" and "Outsourced Maintenance Business." In the automobile leasing business, the company provides vehicle leasing centered on products from Isuzu Motors and UD Trucks. In the outsourced maintenance business, the company offers a wide range of periodic inspections, maintenance, and repair services not only for leased vehicles but also for vehicles owned by customers.

Isuzu Leasing Service is pursuing an aggressive growth strategy with contract volume expansion as its top priority. The company is deploying a multi-faceted approach, including strengthening direct sales to acquire major high-quality customers, establishing electric vehicle support capabilities across all sales locations, and appointing dedicated personnel to improve relationships with sales partners. The company aims to deepen collaboration with the Isuzu Group and Itochu Corporation Group, and accelerate contract volume growth through the sharing of successful cases.

In strengthening product offerings, the company is prioritizing new products such as electric vehicles, fuel cell vehicles, and in-vehicle operation management systems. During the current fiscal year, the company began handling electric buses and expanded its lineup of small trucks operable under standard driver's licenses, building a comprehensive product range that meets all transportation needs from major shippers to small customers. Through entry into these new fields, the company aims to expand beyond the traditional commercial vehicle leasing business.

The company is also focusing on operational efficiency and organizational optimization. In April 2024, it established a Solutions Development Division to streamline new business promotion and optimal lease product development. For sales of standard license-compatible vehicles, the company has introduced a web-based negotiation system that enables nationwide coverage and strengthened sales capabilities through digitalization. Additionally, to improve efficiency in handling the growing number of lease-end vehicles, the company has developed and implemented a new management system called "DAISY," with plans to apply it to operational efficiency improvements in other areas.

On the funding front, the company has adopted a diversified strategy utilizing bank loans, syndicated loans, public bonds, and commercial paper to expand lease assets and strengthen operational support systems. Through establishing a stable funding structure, the company aims to strengthen its financial foundation necessary for business expansion and achieve sustainable growth. On the organizational front, the company is also undertaking a review of its personnel evaluation system with external consultants, and is advancing organizational improvements that leverage the strength of having hired employees with diverse industry experience.