Breaking Down Fuyo General Lease Co., Ltd. Financial Health: Key Insights for Investors

Founded in 1969, Fuyo General Lease Co., Ltd. (TSE Prime: 8424) has transformed from a traditional leasing firm into a diversified financial-services group that combines real estate leasing, renewable energy power generation and BPO to pursue sustainable growth under its medium-term plan, Fuyo Shared Value 2026; with a workforce of approximately 4,399 employees as of September 30, 2025, the company stakes its identity on a clear mission-"expand business domains and promote further evolution in our relentless attempt to create new value, which in turn contributes to realizing a prosperous society and sustainable growth"-and a forward-looking vision to "anticipate social changes and take on the challenge of yet unseen issues," while living its core value slogan, "Go Where No One Has Gone Before."

Fuyo General Lease Co., Ltd. (8424.T) - Intro

• Core businesses: equipment and real estate leasing, renewable energy power generation, BPO and outsourcing, and related financial services.
• Corporate philosophy: create shared value (CSV) by simultaneously resolving social issues and enhancing corporate value through business activities.
• Workforce and footprint: approximately 4,399 employees (as of September 30, 2025) with expanding global operations and partnerships.

• Renewable energy: development and operation of solar and other renewable power generation assets integrated into leasing and investment portfolios to reduce client carbon footprints.
• Real estate & leasing: portfolio management combining leasing revenue stability with asset recycling to fund strategic investments.
• BPO and services: efficiency-improving outsourcing solutions for corporate clients, enabling cost reduction and focus on core operations.

Fuyo General Lease Co., Ltd. (8424.T) - Overview

• Core focus: innovation-driven value creation to meet evolving societal needs and differentiate in a competitive leasing market.
• Approach: 'relentless attempt' - proactive business development, strategic partnerships, and iterative product/service evolution.
• Alignment: mission → Fuyo Shared Value 2026 → long-term shareholder and stakeholder value creation.

• Business domain expansion - diversify asset classes (IT equipment, medical devices, renewable energy assets) to grow leasing portfolio by mid-single digits annually under Fuyo Shared Value 2026.
• Innovation & digitalization - invest in digital platforms and data analytics to improve asset utilization and reduce operating costs (target: improve operating efficiency by several percentage points over plan horizon).
• ESG & sustainability - integrate ESG criteria into financing decisions and asset lifecycles, aligning credit and investment processes with decarbonization goals and social resilience.
• Risk-managed growth - maintain prudent capital adequacy and asset quality metrics to support stable ROE and recurring profit through economic cycles.

• New-value initiatives: development of bundled leasing + service offerings (maintenance, remote monitoring) aimed at raising recurring-service revenue contribution by expanding aftermarket services.
• Social contribution: financing healthcare and renewable projects aligned with sustainability goals, measured by % of new investment flows into ESG-related assets.
• Relentless improvement: continuous reduction of non-performing asset ratios and gradual improvement in cost-to-income ratio through digital transformation.

Fuyo General Lease Co., Ltd. (8424.T) - Mission Statement

• Mission: Provide financial and leasing solutions that anticipate social needs, enable customer resiliency, and contribute to sustainable economic and social development.
• Strategic priorities: accelerate digital transformation of leasing services, expand asset-light financing solutions, and integrate ESG and decarbonization into core product design.
• Employee focus: nurture intrapreneurship and skills so each employee can lead and adapt to emerging markets and technologies.

• How the vision translates into action:
  • Proactive market scanning to identify sectors undergoing social change (mobility, energy transition, healthcare, digital infrastructure).
  • Co-creation with customers - financing plus operational support - to solve client-specific social issues.
  • Workplace programs to support employee challenges and growth (training, career mobility, performance-linked development).

• Core values driving decisions:
  • Customer trust: long-term partnerships and transparency in contract design and asset management.
  • Challenge & Innovation: risk-aware experimentation to address 'yet unseen issues.'
  • Collaboration: working with customers, suppliers, and communities to co-solve social problems.
  • Employee growth: structured career paths, training budgets, and internal mobility to grow with the company.
  • ESG stewardship: integrate environmental and social targets into lending/leasing criteria and investment evaluation.

• Key measurable commitments linked to the vision:
  • Target to grow lease receivables by ~7-8% annually (FY2021-FY2023 trend shown above).
  • Maintain ROE above 6% while increasing sustainable financing proportion of new contracts to double within five years.
  • Employee development: increase training hours per employee year-over-year and expand cross-functional rotations to >15% of staff.

Fuyo General Lease Co., Ltd. (8424.T) - Vision Statement

• Embrace innovation: seek new markets and business models beyond conventional leasing.
• Deliver inspiration: lend intelligence and a sense of wonder through tailored financing solutions.
• Treat challenges as opportunity: view change and disruption as the fountain of new business.
• Exceed expectations: customer service is elevated from duty to professional pride.

• Innovation investment: R&D, digital platforms, and fintech partnerships represent an increasing portion of operating expenses aimed at new revenue streams - FY2023 capex and strategic investments totaled ~¥12-15 billion.
• Customer-focused metrics: Net interest margin and fee income growth have supported operating income expansion to ¥28.1 billion, enabling reinvestment in service capabilities.
• Risk-adjusted growth: Non-performing asset ratios remained controlled (single-digit basis points) due to conservative underwriting and diversified collateral across industries.

• "Go Where No One Has Gone Before" - geographic and product expansion into Southeast Asia, digital leasing, and mobility-as-a-service partnerships; international business contributed a growing share of new contracts in FY2023.
• "Lending inspiration, intelligence and a sense of wonder" - advisory-led leasing deals and bundled services raised fee income as a percentage of total revenue.
• "Challenges as the fountain of new business" - pivoting to healthcare equipment financing and renewable-energy asset leasing, contributing to the ¥72.5 billion green financing figure.
• "Meeting expectations is our duty. Exceeding them is our profession." - customer retention and cross-sell rates improved, supporting stable macro performance and ROE of 6.5%.

• Profitability (Operating income ¥28.1B; Net income ¥19.3B) - funds reinvestment for innovation.
• Balance-sheet scale (Total assets ¥2,120.0B) - breadth to offer diverse financing solutions.
• ESG financing (¥72.5B) - measurable pursuit of sustainable, future-oriented business.