Further Growth after Record Earnings for Six Consecutive Fiscal Years
Since its merger in April, 2009, the Group is steadily improving its business performance. At the end of March 2015, our balance of operating assets including business guarantees totaled 2,914.2 billion yen, which is 1.4 times the total as of March 31, 2009. Ordinary income was 60.7 billion yen, increasing 2.7 times from the fiscal year ended March 31, 2009, and achieved a new record for the sixth consecutive fiscal year. Net income was 34.1 billion yen, also achieving another new record for the fourth consecutive fiscal year.
Our market capitalization increased by a factor of around six, from 64.0 billion yen on April 1, 2009, at the time of the merger, to 389.7 billion yen at the end of March 2015.
We have classified our business into four operating segments, as Equipment Leasing, Specialty Financing, Domestic Automobile Financing, and International Business. Equipment Leasing is our business base with steadily managing its operating assets of over 1,500 billion yen in the past few years. At the same time, the other three operating segments have been expanding at a good pace. Specialty Financing with such new growth fields as shipping, aviation, environment and energy, and real estate, has displayed highly specialized expertise. Domestic Automobile Financing possesses industry-leading lineup of automobile leasing for corporate and individual customers and car rental services. And in International Business, we take opportunities in world growth from Asia to global markets. As of March 31, 2015, the share of operating assets in Equipment Leasing to total assets has declined to 52% from 81% as of March 31, 2009 at the point of merger. In contrast, the balance of operating assets in Specialty Financing, Domestic Automobile Financing, and International Business have increased their shares to 26%, 13%, and 9%, respectively as they have developed as the next pillars. This proves that the Company has expanded its business while changing its business portfolio.
In the fiscal year ending March 31, 2016, the last year of our second three-year medium-term management plan, with our past initiatives in each of the four operating segments contributing to profit growth from the top line, and through cost controls on interest expenses and selling, general and administrative expenses, total revenues are projected to increase 3.1% year on year to 910.0 billion yen, ordinary income is forecasted to grow 5.5% year on year to 64.0 billion yen, and net income attributable to owners of parent rise 6.9% year on year to 36.5 billion yen.
As for dividends, the Group plans to pay full-year dividends for the fiscal year ended March 31, 2015 of 65 yen per share, up 13 yen year on year, and for the fiscal year ending March 31, 2016, we plan to further increase annual dividends by 5 yen to 70 yen per share, which is the twelfth consecutive increase since fiscal year ended March 2005.
ROE, which we have placed as one of our most important management indicators, remained at a high level of 12.5% in the fiscal year ended March 31, 2015, and in addition to being selected for the JPX-Nikkei Index 400. We were also selected as a “Competitive IT Strategy Company” in May, which is jointly selected by the Ministry of Economy, Trade, and Industry and the Tokyo Stock Exchange, Inc.
In addition, we have appointed two External Directors from the current fiscal year. Both of these Directors are highly independent External Directors, and we believe that they will contribute to strengthening of governance of the Group.
In the future, we will not restrict ourselves to leasing, but approach business from a higher perspective, and further expand our business fields while strengthening earning capabilities to generate sustainable growth to meet the expectations of all our stakeholders.
President & CEO