NEC Capital Solutions Limited

Business Details

Provides leasing, rental, and installment sales primarily of information and communication equipment, office equipment, and various facility equipment, along with lease-related goods sales, sale of equipment upon expiration or early termination, and leased equipment maintenance services. Targets a broad customer base ranging from government agencies and local governments to large corporations and SMEs, with vendor finance as a key strength. In FY2026 (ending March 2026), net sales were ¥241,618 million, accounting for approximately 79% of total company net sales of ¥306,155 million, and the operating asset balance was ¥690,422 million (58.6% of the company total), making it the largest segment.

Recent Overview

Contract execution volume increased 22.6% YoY and new contract volume increased 28.9% YoY due to acquisition of GIGA School Program second phase and large-scale government projects; operating profit increased by ¥1,864 million YoY.

In FY2026 (ending March 2026), Leasing Business net sales were ¥241,618 million (up 5.4% YoY), and operating profit was ¥6,231 million (up ¥1,864 million YoY). In addition to acquiring ICT equipment projects for the "second phase of the GIGA School Program," large-scale projects centered on government agencies progressed steadily, with contract execution volume up 22.6% YoY and new contract volume up 28.9% YoY. Although cost of funds increased from ¥5,282 million to ¥7,056 million due to rising interest rates, the expansion of gross profit absorbed this increase, resulting in a significant increase in operating profit.

Key Products

Growth Drivers

• Continued expansion in acquisition of ICT equipment projects associated with the second phase of the GIGA School Program
• Steady booking of large-scale lease projects for government agencies and local governments (contract execution volume up 22.6% YoY, new contract volume up 28.9% YoY)
• Development of new vendors and partners through strengthened vendor finance
• Higher value-added ICT-related services (PC-LCM services, IT asset management, etc.)
• Expansion of customer base and creation of business synergies through the business alliance with the SBI Shinsei Bank Group
• Focus on the public and ICT infrastructure business under the medium-term management plan "Medium-Term Plan 2028"

Risks

• Increase in cost of funds due to rising interest rates associated with normalization of monetary policy (cost of funds increased by ¥1,774 million YoY in FY2026)
• Risk of stagnation in domestic capital expenditure due to U.S. tariff policy or deterioration of the Middle East situation
• Risk of intensifying competition in the leasing industry and slowing growth in transaction volume
• Customer credit risk (possibility of additional provisions for allowance for doubtful accounts)
• Risk of declining demand once public ICT investment such as the GIGA School Program has run its course
• Reduced comparability of results due to the change in segment classification from a product basis to a business basis starting FY2027 (ending March 2027)