Fuyo General Lease Co., Ltd.

Business Details

Conducts Finance Lease and Operating Lease (including property sales, etc.) of information-related equipment, industrial machine tools, etc., Real Estate Lease, and Installment Sales of commercial equipment, production equipment, hospital equipment, etc. Domestic and overseas consolidated subsidiaries participate, covering a wide range of asset classes including growth areas such as aircraft, Mobility/Logistics, and real estate. This core segment accounts for approximately 60.2% of the Group's total operating asset balance.

Recent Overview

Achieved revenue growth of 16.0% and segment profit growth of 2.0%.

In FY2026 (ending March 2026), the Leasing and Installment Sales segment achieved revenue of ¥677,005 million (up 16.0% year on year) and segment profit of ¥44,627 million (up 2.0% year on year). Contract execution value expanded to ¥571,164 million (up 8.2% year on year), driven by a 21.1% increase in Operating Lease. On the other hand, depreciation of leased assets increased significantly to ¥61,414 million (up 24.3% year on year), limiting room for margin improvement. The operating asset balance steadily increased to ¥1,958,493 million (up 1.5% from the end of the prior fiscal year).

Key Products

Growth Drivers

• Operating Lease contract execution value expanded 21.1% year on year, continuing to capture demand for aircraft and transport equipment leasing
• Installment sales contract execution value grew steadily, up 10.2% year on year
• Revenue boosted by an increase in sales of real estate-related lease transactions
• Expansion of domestic and overseas transport equipment leasing in the Mobility/Logistics area (including EV-related business)
• Expansion of overseas business, including environmentally conscious real estate development with a UK alliance partner
• Steady buildup of the combined operating asset balance for Leasing and Installment Sales, up 1.5% from the end of the prior fiscal year

Risks

• Risk of margin pressure from a significant increase in depreciation of leased assets (up 24.3% year on year to ¥61,414 million)
• Increase in cost of funds due to rising domestic interest rates (consolidated interest expense increased significantly to ¥4,320 million from ¥2,942 million in the prior fiscal year)
• Slight decline in Finance Lease contract execution value, down 1.5% year on year
• Risk of impairment of leased assets (due to changes in assumptions such as future cash flows, discount rates, and net realizable value)
• Goodwill impairment risk (amortization of goodwill in the Leasing and Installment Sales segment increased 183.5% year on year to ¥910 million)
• Foreign exchange risk (increase in foreign currency-denominated assets accompanying the expansion of global businesses such as aircraft leasing by overseas subsidiaries)
• Risk of cash flow deterioration due to a significant increase in expenditure for acquisition of leased assets (¥282,729 million, versus ¥156,964 million in the prior fiscal year)