KYUSHU LEASING SERVICE CO., LTD.

Business Details

The largest segment of the Group, engaged in finance leases, operating leases, and installment sales of machinery and equipment. New transaction volume has trended steadily, driven mainly by commercial equipment and the environmental field related to renewable energy. The Group is promoting the development of quality local customers and collaborative engagement in large-scale capital investment projects through enhanced cooperation with Nishi-Nippon Financial Holdings. As of the end of FY2026 (ending March 2026), the operating asset balance stood at ¥105,744 million, accounting for 51.4% of the Group's total.

Recent Overview

Revenue decreased 8.4% year on year, but operating profit rose sharply, up 14.9% year on year, with a significant improvement in profitability

In FY2026 (ending March 2026), new transaction volume trended steadily, driven mainly by commercial equipment and the environmental field related to renewable energy. On the other hand, revenue was ¥21,844 million (down 8.4% year on year) due to the reversal of a one-time factor from lease property sale proceeds recorded in the same period of the previous year. Operating profit achieved a significant increase to ¥1,935 million (up 14.9% year on year). The operating asset balance expanded steadily to ¥105,744 million (up 4.9% from the end of the previous period).

Key Products

Growth Drivers

• Steady growth in new transaction volume for environment-related fields such as renewable energy
• Development of quality local customers through enhanced cooperation with Nishi-Nippon Financial Holdings
• Strengthened deal-acquisition capabilities through collaborative engagement in large-scale capital investment projects
• Steady buildup of the operating asset balance through asset replacement focused on profitability and efficiency
• Diversification of the revenue base through expansion of the Installment Sales balance (up 13.2% from the end of the previous period)

Risks

• Risk of revenue volatility due to the reversal of one-time income such as lease property sale proceeds recorded in the same period of the previous year
• Risk of increased funding costs due to rising market interest rates
• Risk of curtailed capital investment by client companies due to worsening economic conditions
• Uncertainty in the external environment due to heightened US trade policy and geopolitical risks
• Risk of sluggish growth in new transaction volume due to intensifying competition with other companies