ENVALITH
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Tokyo Century Corporation

8439・Prime Market・Other Financing Business

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東京センチュリー株式会社 logo
Tokyo Century Corporation8439

Business

Tokyo Century Corporation, established in 1969, is a comprehensive leasing and finance company with ITOCHU Corporation and NTT as its major shareholders. The company operates five segments—Domestic Lease, Automobility, Specialty (aircraft, ships, real estate), International, and Environment & Infrastructure—comprising 406 subsidiaries and 67 affiliated companies. Targeting a wide range of asset classes from information and communication equipment to aircraft leasing, primarily for corporate customers, it operates leasing, finance, and investment businesses in an integrated manner both domestically and internationally. In FY2026 (ending March 2026), net sales were ¥1,457,670 million and net income attributable to owners of the parent reached ¥111,299 million, marking a record high profit.

Business Model

Provides equipment, vehicles, aircraft, ships, and other assets to corporate customers through leasing or financing, accumulating lease payments and interest income. In addition, revenue is derived from investment gains from equity-method affiliates such as NTT-TC Leasing and MUFG Finance & Leasing, as well as capital gains from aircraft sales and ship sales. The company aims to improve capital efficiency through a "hybrid investment business model" that combines accelerated asset turnover with the use of external capital.

Company Strengths

Through its wholly owned subsidiary Aviation Capital Group LLC (ACG), the company has signed purchase agreements for 135 aircraft to be delivered by 2031 (with scheduled payments of ¥1,173,245 million), and has also completed an additional order for 50 aircraft and purchase agreements for 24 aircraft. The Specialty Business segment's asset balance stood at ¥3,201,401 million, the largest in the group, and in FY2026 (ending March 2026) the segment's net income rose ¥79.3 billion year on year to ¥112.2 billion.

In 2020, the company entered into a capital and business alliance with NTT Corporation, and through the joint venture NTT Finance TC Leasing Corporation (NTL), combined the NTT Group's customer base and technological capabilities with the company's asset management expertise. In FY2026 (ending March 2026), NTL overcame rising yen interest rates to post record profits. Itochu Corporation, also a major shareholder, continues its business collaboration, and cooperation with these two major shareholders has built a customer acquisition capability that is difficult for competitors to replicate in the short term.

The company has business locations in East Asia, ASEAN, North America, Latin America, Europe, and Australia, with International Business segment assets totaling ¥1,008,133 million. It has built a network of local subsidiaries including CSI Leasing (US), BPI Century Tokyo (Philippines), and TISCO Tokyo Leasing (Thailand). In FY2026 (ending March 2026), International Business segment net income grew ¥7.2 billion year on year to ¥23.5 billion, with diversification across both regions and asset classes supporting earnings stability.

ENVALITH's Perspective

Net income attributable to owners of the parent of ¥111,299 million for FY2026 (ending March 2026) includes an ¥82,440 million gain from an ACG Russia-related insurance settlement (extraordinary income) and an ¥86,925 million impairment loss (extraordinary loss) associated with the revision of the biomass co-firing power generation and system development plan. Excluding both items, the underlying profit level is steadily improving, as shown by ordinary income of ¥163,417 million (up 23.5% year on year); however, investors need to carefully assess the likelihood of achieving the projected net income of ¥123,000 million for FY2027 (ending March 2027) (up 10.5% year on year), once these special factors fall away.

The Environment & Infrastructure Business recorded a segment loss of ¥44,450 million in FY2026 (ending March 2026), and segment asset balance declined by ¥67.9 billion from the end of the previous fiscal year to ¥217,290 million. The main cause is reduced profitability stemming from the revision of the biomass co-firing power generation business plan, and rebuilding a path toward profitability in the renewable energy business is a key challenge. It is expected to take time for the segment's earnings to improve until new initiatives such as UK solar power (targeting 500MW by 2028) and grid-connected battery storage (targeting approximately 600MW) gain traction.

Interest-bearing debt increased by ¥229.9 billion from the end of the previous fiscal year, reaching a scale of ¥5,142,500 million, and cash flow from financing activities showed a large net inflow of ¥187,955 million (compared with a net outflow of ¥43,381 million in the previous fiscal year). Amid the Bank of Japan's continued policy rate hikes, interest expense increased to ¥11,181 million (from ¥9,681 million in the previous fiscal year), and there is a risk that rising funding costs could pressure earnings in future phases of interest rate increases. While the equity ratio is on an improving trend at 15.5% (up from 15.0% in the previous fiscal year), liquidity management remains an important point to monitor given the highly leveraged management of total assets exceeding ¥7 trillion.

Growth Strategy

Under the Long-Term Vision 2035 and Medium-Term Management Plan 2030, the company is advancing into uncharted business territories and driving the resolution of societal challenges

On May 11, 2026, the company announced the 10-year "Long-Term Vision 2035" and the 5-year "Medium-Term Management Plan 2030." Aiming to become an "eternal venture company that leads the resolution of global societal challenges," it set policies of continuing progressive dividends and maintaining a dividend payout ratio of 35% or higher. The previous "Medium-Term Management Plan 2027" was achieved early, at a pace significantly exceeding initial expectations.

In addition to ACG's purchase agreement for 135 aircraft (delivery in FY2031 (ending March 2031), planned payment amount of ¥1,173,245 million), the company has signed an additional order for 50 Boeing aircraft (delivery in FY2032–FY2033) and a purchase agreement for 24 Avolon aircraft (delivery by September 2026). The hybrid investment business model is also being rolled out in earnest through the conversion of Advantage Partners and C Transport Maritime into equity-method affiliates.

Following the recognition of an impairment loss on the biomass co-firing power generation business, the business portfolio is being restructured. The company aims to achieve approximately 600MW of operational capacity through the commercial launch of grid-connected battery storage operations in Osaka Prefecture and Iwate Prefecture, and the start of a battery storage co-location project in Kagoshima Prefecture. Through a joint venture with UK-based Downing LLP, the company targets building a solar power plant portfolio of approximately 500MW in total across around 10 sites by 2028.

Starting with the acquisition of all shares of Australia's Bargain Car Rentals (the company's first wholly owned overseas rent-a-car business), the company aims to expand its value chain into vehicle leasing, finance, and used car businesses. In parallel, it is advancing entry into maintenance leasing through the establishment of IFSA (Australia), a joint venture with Isuzu, and the full-scale rollout of GSE Lifecycle Management by CSI Leasing.

Effective April 1, 2026, the company implemented an organizational restructuring and introduced a CxO system to strengthen business competitiveness, accelerate decision-making, and enhance group governance. The corporate transformation program "TC Compass" was launched in fiscal 2025, and a change in reportable segments is also planned starting from FY2027 (ending March 2027).

Last updated: July 19, 2026