Create New Business with Leasing

Handout for Financial Results Briefing For the First Six Months of Fiscal Year Ending March 31, 2015

November 2014

Any statements in this document, other than those of historical facts, are forward-looking statements about the future performance of

Century Tokyo Leasing Corporation and its Group companies, which are based on management’s assumptions and beliefs in light of

information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts.

All numerical terms and names presented in this report conform to the “short scale” numerical system. (i.e., “billion” = “109” and “trillion” = “1012 ”)

1 1

I. Overview of TC-Lease ····································· 2

Corporate Profile ············································ 3

Stock Information/Bond Ratings ·························· 4

Topics in the First Six Months of FY2014 ··············· 5

Major Affiliates ·············································· 6

Corporate Network ·········································· 7

II. Consolidated Financial Results for the First Six

Months of Fiscal Year Ending March 31, 2015

<Accounting Segment> ···································· 8

Financial Highlights········································· 9

Operating Results ·········································· 10

New Transaction Volume ································· 11

Breakdown of New Lease Transactions ················ 12

Balance of Operating Assets ····························· 13

Fund Procurement ········································· 14

Credit Costs ················································ 15

Financial Highlights of Major Group Companies ···· 16

Significant Management Indicators ····················· 17

III. Forecast of Consolidated Results for Fiscal Year

Ending March 31, 2015 and Profit Distributions……18

Forecast of Consolidated Results for Fiscal Year

Ending March 31, 2015……………………………...19

Profit Distributions………………………….…...…..20

IV. Results by Operating Segment ·························· 21

Balance of Operating Assets by Operating Segment · 22

1. Equipment Leasing····································· 23

2. Specialty Financing and Future Image ·············· 24

Business Model of Aircraft Financing Business ······ 25

3. Balance of Operating Assets

in International Business ································· 26

Topics I: International Business ························· 27

Topics II: International Business ························ 28

4. Automobile Financing ································· 29

Financial Highlights of Automobile Financing

Companies (full-year) ···································· 30

5. Global Assets ··········································· 31

Appendix

Financial Results ·········································· 32

Consolidated Statements of Income ···················· 33

Consolidated Balance Sheet ····························· 34

Contents

2

I. Overview of TC-Lease

3

Company Name Century Tokyo Leasing Corporation (Abbreviation: TC-Lease)

Security Code 8439

Listed Stock Exchange Tokyo Stock Exchange First Section

Date of Merger April 1, 2009

Paid-in Capital JPY34,231 Mn

Number of Employees 4,068 (Consolidated basis)

Major Shareholders Mizuho Group 35.3%

ITOCHU Corporation 25.0%

Total Number of Shares Issued 106,624,620 Shares

Market Capitalization JPY310.8 Bn

Corporate Profile As of September 30, 2014

Number of Common Stocks and Shareholders

Number of Common Stock Authorized………………..400,000,000

Number of Common Stock Issued…………………..…106,624,620

Number of Shareholders…………………………..………..…7,540

4 Stock Information/Bond Ratings As of September 30, 2014

Major Shareholders

Number of shares heldPercentage of shares

outsanding (%)

1. ITOCHU Corporation 26,656,200 25.0

2. Nippon Tochi-Tatemono Co., Ltd. 11,831,700 11.1

3. KSO Co., Ltd. 9,963,000 9.3

4. Mizuho Bank, Ltd. 4,688,030 4.4

5. Nissin Tatemono Co., Ltd. 3,537,900 3.3

6. Japan Trustee Services Bank, Ltd. (Trust accounts) 3,314,900 3.1

7. Seiwa Sogo Tatemono Co., Ltd. 2,972,650 2.8

8. Nippon Life Insurance Company 2,228,865 2.1

9. Mizuho Trust & Banking Co., Ltd.

(Retirement Allowance Trust, Orient Corporation Account)1,900,000 1.8

10. Yushu Tatemono Co., Ltd. 1,716,000 1.6

Credit Rating Agency Japan Credit Rating Agency, Ltd. (JCR) Rating and Investment Information, Inc. (R&I)

(Long-Term Senior Debt)

Rating: A+

Outlook: Stable

(Issuer Rating)

Rating: A

Outlook: Stable

(Preliminary Rating for Bonds Registered for Issuance)*

Rating: A+

Expected Issue Amount: ¥200 billion

Issue Period: Two Years Beginning February 14, 2014

(Preliminary Rating for Bonds Registered for Issuance)*

Rating: A

Expected Issue Amount: ¥200 billion

Issue Period: Two Years Beginning February 14, 2014

(Euro Medium-Term Note Program)

Rating: A+

Maximum Outstanding Amount: Equivalent of US$2 billion

(Euro Medium-Term Note Program)

Rating: A

Maximum Outstanding Amount: Equivalent of US$2 billion

Short-term

(Commercial Paper)

Rating: J-1

Maximum Outstanding Amount: ¥650 billion

(Commercial Paper)

Rating: a-1

Maximum Outstanding Amount: ¥650 billion

Long-term

Breakdown of Shareholders

Bond Ratings (As of February 14, 2014)

*Each bond will be rated by each rating company upon issuance.

Foreign investors

13.3％

Individuals

5.0％

Financial institutions

22.0％

Securities companies

0.9％

Other domestic

corporations

58.0％

Treasury shares

0.8％

5 Topics in the First Six Months of FY2014

Decided to establish aircraft leasing

joint ventures with CIT Group Inc.,

a leading provider of commercial

lending and leasing services in the

U.S.

Included TISCO Tokyo Leasing Co., Ltd., a local subsidiary in Thailand,

into the Company’s scope of consolidated subsidiary 4

5

2014

9

8

7

6

10

Issued the 7th and the 8th unsecured straight bond (JPY 40 billion)

Commenced floating solar power plant business

Decided to acquire the shares of BPI Leasing

Corporation, an affiliate of Bank of the Philippine

Islands, one of the largest banks in the Philippines

Decided to acquire a stake in a new leasing company to be established

by Suzhou government-affiliated company in China

Steadily increased ordinary income approximately 30 billion yen,

proceeded to 52.4% of its annual plan

Promoted alliance with companies overseas and plans to expand

its global network to 29 operating bases

1

2

Major Affiliates 6 As of September 30, 2014

TC-Lease

Nippon Car Solutions Co., Ltd. <NCS> Automobile leasing 59.5% Nippon Telegraph and Telephone Corporation (NTT): 40.5％

Orico Auto Leasing Co., Ltd. <OAL> Automobile leasing for individuals 50% Orient Corporation: 50％

Nippon Rent-A-Car Service, Inc. <NRS> Rental car services business 60.2%

Fujitsu Leasing Co., Ltd. <FLC> IT-related equipment leasing business 80% Fujitsu Ltd.: 20％

IHI Finance Support Corporation <IFS> Financing business and general leasing 66.5% IHI Corporation: 33.5%

S.D.L Co., Ltd. <SDL> General leasing 90% Shiseido Co., Ltd.: 10％

TCI Finance Corporation Financing 60% ITOCHU Corporation: 40%

ITEC Leasing Co., Ltd. General leasing 85.1% NHK (Japan Broadcasting Corporation) Group: 14.9％

TC Property Solutions Corporation Property management 100%

TRY, Inc. Refurbishment of PCs 100%

TC Agency Corporation Non-life insurance agent 100%

TC-Lease

Century Tokyo Leasing China Corporation Mainland China: 8 bases 80% ITOCHU Group: 20%

Century Tokyo Factoring China Corporation Shanghai 100%

Century Tokyo Leasing (Singaporre) Pte. Ltd. Singapore 100%

Century Tokyo Leasing (Malaysia) Sdn. Bhd. Malaysia 100%

PT. Century Tokyo Leasing Indonesia Indonesia 85% ITOCHU Group： 15%

PT. TCT Indonesia Indonesia 100%

TISCO TOKYO LEASING CO., LTD. Thailand 49% TISCO FINANCIAL GROUP: 49％

President Tokyo Corporation Taiwan: 4 bases 49% UNI-PRESIDENT ENTERPRISES Group: 51％

Tong-Sheng Finance Leasing Co., Ltd. Suzhou 49% UNI-PRESIDENT ENTERPRISES Group: 51％

Century Tokyo Leasing (USA) Inc. U.S.A. 100%

GA Telesis, LLC U.S.A. 20%

TC Aviation Capital Ireland Limited Ireland 100%

Overseas (Asia) Region Shareholders

ShareholdersDomestic Main Business Operations

*

*

*

* Voting Shares

Corporate Network 7

Europe London

Dublin

U.S.A. New York

Florida

Has 25 operating bases, to be expanded to 29 locations by the end of December 2014

East Asia

New offices to be established in China (Suzhou New District), the Philippines (BPI), Ireland,

and the U.S.A. (CIT)

As of September 30, 2014

China

Shanghai,

Dalian, Wuhan,

Beijing, Chengdu,

Qingdao, Guanzhou

Suzhou, Hong Kong

Factoring Company

Shanghai

Automobile Leasing

Company

Suzhou

Taiwan

Taipei, Taichung,

Tainan, Kaohsiung

ASEAN Thailand

Malaysia

Singapore

Indonesia (2)

South Asia India

8

II. Consolidated Financial Results

for the First Six Months of Fiscal Year

Ending March 31, 2015

<Accounting Segment>

9 Financial Highlights

Shows steady progress in ordinary income as it has reached 52.4% of the annual plan,

going further than the standard (50.0%).

JPY Bn

FY2013/2Q FY2014/2Q

（13/4-9） （14/4-9） ChangeAnnounced on

May 8, 2014

Achievement

Rate

Revenues 359.7 438.5 78.8 21.9% 860.0 51.0%

( Volume of New Transactions 600.9 632.5 31.6 5.3% )

Operating Income 23.6 28.9 5.4 22.8% 56.3 51.4%

Ordinary Income 26.5 29.9 3.4 12.6% 57.0 52.4%

Net Income 17.6 16.6 -1.0 -5.8% 33.3 49.7%

FY2013 FY2014/2Q

Change

Total Assets 2,884.8 2,918.3 33.6 1.2%

( Cash and Cash Equivalents 79.8 93.3 13.5 16.9% )

Balance of Operating Assets 2,646.8 2,679.9 33.1 1.3%

Net Assets 285.5 306.4 20.9 7.3%

Equity Ratio 8.8% 9.3% 0.5pt －

Performance Outlook for

Year Ending March 31, 2015

% Change

% Change

Note: Operating assets include business guarantees.

Operating Results 10

JPY Bn

FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q

（10/4-9） （11/4-9） （12/4-9） （13/4-9） （14/4-9） Change % Change

Revenues 1 362.4 348.9 344.2 359.7 438.5 78.8 21.9%

Costs 2 326.6 313.1 310.0 318.9 376.7 57.8 18.1%

Interest Expenses 3 7.9 6.0 5.2 4.4 4.8 0.4 9.3%

Gross Profit on Revenues 4 35.8 35.8 34.2 40.9 61.9 21.0 51.5%

SG&A Expenses 5 15.3 14.2 13.7 17.3 32.9 15.7 90.6%

Allowance for Doubtful Accounts 6 1.1 -0.7 -1.2 -0.8 -0.5 0.3 －

7 20.4 21.6 20.5 23.6 28.9 5.4 22.8%

8 2.1 2.8 3.0 3.0 0.9 -2.0 -68.6%

Ordinary Income 9 22.5 24.4 23.5 26.5 29.9 3.4 12.6%

Extraordinary Gains and Losses 10 -1.9 -2.0 -0.2 0.4 0.2 -0.3 -63.4%

11 20.6 22.5 23.4 26.9 30.0 3.1 11.4%

Net Income 12 11.7 13.3 14.4 17.6 16.6 -1.0 -5.8%

#

Operating Income

Non-operating Income

Income Before Extraordinary

Items and Income Taxes

Ordinary income was 29.9 billion yen, achieved the record high for the first half and increased

3.4 billion yen from the same period of the previous fiscal year due to increase in revenues and

profits by consolidation of automobile financing companies.

New Transaction Volume 11

JPY Bn

FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q

% Change

352.6 495.4 544.3 600.9 632.5 5.3%

Leasing 214.6 239.4 272.6 300.5 290.1 -3.4%

Installment Sales 30.6 48.4 46.3 55.6 55.1 -0.9%

Financing 107.4 207.6 225.5 244.8 287.3 18.8%

FY2010 FY2011 FY2012 FY2013 FY2014 Plan

% Change

893.9 1,072.7 1,178.8 1,409.4 1,450.0 2.9%

Leasing 476.2 507.4 591.0 690.5

Installment Sales 83.0 92.2 98.5 112.0

Financing 334.7 473.1 489.3 606.9

39.4% 46.2% 46.2% 42.6% 43.6%

Note: Financing includes Other businesses.

(Summary of the First Half)

(Summary of the Fiscal Years)

New Transactions Volume [B]

Achievement rate against

the result or plan [A/B]

New Transactions Volume [A]

12 Breakdown of New Lease Transactions

TC-Lease Group (Exclude Overseas Subsidiaries) JPY Bn

ICT-related OfficeIndustrial/

Machine ToolsConstruction Transportation Medical

Commerce/

ServicesOthers Total

Overseas

SubsidiariesTotal

111.8 7.2 15.6 4.3 84.0 4.5 18.8 10.6 256.8 33.3 290.1

Percentage 43% 3% 6% 2% 33% 2% 7% 4% 100%

-15.9% -15.9% -52.9% -21.8% 35.8% -7.0% 2.1% -56.0% -11.2% 198.9% -3.4%

Reference: Leasing Industry (Announced by Japan Leasing Association) JPY Bn

ICT-related OfficeIndustrial/

Machine ToolsConstruction Transportation Medical

Commerce/

ServicesOthers Total

613.3 198.8 226.1 64.5 273.9 92.2 285.9 195.1 1,949.8

Percentage 31% 10% 12% 3% 14% 5% 15% 10% 100%

-12.8% -3.1% -32.8% -22.0% -0.2% -27.7% -2.1% -6.2% -12.6%

FY2014/2Q

YoY Percentage

FY2014/2Q

YoY Percentage

Balance of Operating Assets 13

JPY Bn

2011/3 2012/3 2013/3 2014/3 2014/9

% Change

2,049.8 2,143.2 2,276.6 2,646.8 2,679.9 1.3%

1,383.7 1,375.8 1,473.9 1,783.9 1,785.8

Percentage 67.5% 64.2% 64.7% 67.4% 66.6%

Installment Sales 191.8 188.0 201.6 213.7 224.3

Percentage 9.4% 8.8% 8.9% 8.1% 8.4%

Financing 474.3 579.5 601.2 649.2 669.8

Percentage 23.1% 27.0% 26.4% 24.5% 25.0%

Note: Financing includes balance of business guarantees and balance of operating assets from Other businesses.

2011/3 2012/3 2013/3 2014/3 2014/9

2,184.6 2,260.4 2,465.8 2,884.8 2,918.3

178.8 201.3 233.7 285.5 306.4

7.8% 8.4% 9.0% 8.8% 9.3%

Balance of Operating Assets

2015/3

Plan

2,800.0

～2,850.0

Net Assets

Equity Ratio

0.1%

5.0%

3.2%

Total Assets

Leasing

Fund Procurement 14

JPY Bn

2011/3 2012/3 2013/3 2014/3 2014/9

Change

Balance of Interest Bearing Debt 1,741.9 1,783.2 1,939.2 2,211.7 2,278.9 67.2

Commercial Paper 630.3 631.9 648.9 739.3 751.6 12.3

MTN 1.5 4.2 29.7 36.5 42.7 6.2

Corporate Bond 0.0 40.0 95.0 142.0 157.1 15.1

Securitized Lease Assets 72.1 57.7 54.7 66.0 67.0 1.0

Short-term Borrowings 281.0 285.7 340.7 415.2 446.9 31.7

Long-term Borrowings 757.0 763.7 770.2 812.6 813.6 1.0

54.1% 54.2% 54.9% 55.9% 55.9% －

40.4% 41.1% 42.7% 44.5% 44.7% 0.2pt

JPY Bn

FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q

Change

7.9 6.0 5.2 4.4 4.8 0.4Interest Expenses

Short-term Funding Ratio

Direct Funding Ratio

Credit Costs 15

(First Half Summary) JPY Bn

FY2010/2Q FY2011/2Q FY2012/2Q FY2013/2Q FY2014/2Q

% Change

Credit Costs (amount disposed) 1.1 -0.6 -1.2 -1.1 -0.5 0.6

(Fiscal Year Summary)

FY2010 FY2011 FY2012 FY2013

Credit Costs (amount disposed) 1.0 0.0 -1.0 -0.4

Reference: Business Failures in Japan

FY2010 FY2011 FY2012 FY2013 FY2014

Change

11,496 11,435 10,710 10,102 4,750

1st Half 5,751 5,726 5,439 5,320 4,750 -570

2nd Half 5,745 5,709 5,271 4,782

JPY Bn

4,557.4 3,916.5 2,929.1 2,747.4 914.5

1st Half 2,631.9 1,885.5 1,707.7 1,755.5 914.5 -841.0

2nd Half 1,925.5 2,031.0 1,221.5 991.9

Source: TEIKOKU DATABANK

Number of Business Failures

Number of Business Failures

Note: Figures above partly being included in sales costs.

Negative figures represent reversal of allowance for doubtful receivables.

Financial Highlights of Major Group Companies 16

JPY Bn

FY2014/2Q

Figures represent changes from the same

period of the previous fiscal year.Change Change Change Change Change

Revenues 256.7 20.5 81.4 60.9 59.0 1.6 13.3 2.4 438.5 78.8

Operating Income 18.0 0.2 5.0 3.9 1.1 0.3 1.5 0.5 28.9 5.4

Ordinary Income 20.6 2.3 5.1 4.1 1.1 0.2 1.6 0.5 29.9 3.3

Net Income 13.3 2.5 3.2 2.7 0.7 0.2 1.2 0.4 16.6 -1.0

2014/9

Operating Assets(Including business guarantees)

1,736.3 11.7 272.6 4.5 274.8 -20.9 174.6 47.9 2,679.9 33.1

Figures represent changes from the end of

the previous fiscal year.

Note: For NCS, figures in "Change" are comparison with former Tokyo Auto Leasing's results from FY2013/2Q.

Total in

consolidate basis

Overseas

subsidiaries

TC-Lease

(Non-consolidated)

Nippon Car Solutions

(NCS) *1

Fujitsu Leasing

(FLC)

17 Significant Management Indicators

TC-Lease’s attitude toward significant management indicators

1. Take another step forward in ROA,

which is currently 2.2%.

2. Stretch EPS at the same pace as

present

3. Far exceeds the industry average

of approximately 8% in ROE

Strengthen ROA, EPS, ROE in a

well-balanced manner

Five-Year Summary of Significant Management Indicators

FY2009 FY2010 FY2011 FY2012 FY2013

ROA (%) 1.6 2.2 2.2 2.1 2.2

EPS (Yen) 239.57 221.80 245.82 272.32 311.64

ROE (%) 18.5 14.8 14.5 14.0 13.9

Ordinary Income(Billions of yen)

33.4 44.2 46.3 46.3 55.2

Equity Ratio(Billions of yen)

150.4 170.0 190.9 222.3 252.4

Operating Assets(Billions of yen)

1,962.0 2,049.8 2,143.2 2,277.2 2,646.8

*1 Operating assets include business guarantees.

*2 ROA= Ordinary income/[(balance of operating assets at the beginning of the period +

balance of operating assets at the end of the period)/2]

18

III. Forecast of Consolidated Results

for Fiscal Year Ending March 31, 2015

and Profit Distributions

19 Forecast of Consolidated Results

for Fiscal Year Ending March 31, 2015

No revision has been made on the forecast of consolidated results

announced on May 8, 2014.

JPY Bn

FY2013

828.6 860.0 31.4 3.8%

51.4 56.3 4.9 9.5%

55.2 57.0 1.8 3.3%

33.1 33.3 0.2 0.8%

Revenues

Operating Income

Net Income

FY2014 Forecast

Change % Change

Ordinary Income

20 Profit Distributions

Revised dividend plan for FY2014 Former Century Leasing System

Consecutive increases in dividend since listed in FY2004 to FY2008

Former Tokyo Leasing

11 years of consecutive increases in dividend since FY1998 to FY2008

TC-Lease

28

4852

44

64

32

40

26

0

10

20

30

40

50

60

70

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

(Forecast)

Yen

FY2013

Announced

on Nov. 4

Announced

on May 8Change

Change from

the previous

year

311.64 314.74 314.74 - 3.10

52.00 64.00 56.00 8.00 12.00

Interim Dividend 26.00 32.00 28.00 4.00 6.00

Year-end Dividend 26.00 32.00 28.00 4.00 6.00

16.7% 20.3% 17.8% 2.5pt 3.6pt

Net Income per Share

Cash Dividend per Share

Dividend Payout Ratio

FY2014 Forecast

21

IV. Results by Operating Segment

22 JPY Bn

2011/3 2012/3 2013/3 2014/3 2014/9 Future Image

(In three years)

Balance of Operating Assets 2,049.8 2,143.2 2,276.6 2,646.8 2,679.9 3,300.0

1,518.7 1,502.8 1,506.5 1,546.0 1,507.7 1,500.0

Percentage 74.2% 70.1% 66.2% 58.4% 56.3% 45.5%

Specialty Financing 353.5 432.8 520.0 570.0 603.4 1,000.0

Percentage 17.2% 20.2% 22.8% 21.5% 22.5% 30.3%

International Business 90.8 104.5 133.4 170.0 196.6 300.0

Percentage 4.4% 4.9% 5.9% 6.4% 7.3% 9.1%

Automobile Financing 86.8 103.1 116.7 360.8 372.2 500.0

Percentage 4.2% 4.8% 5.1% 13.6% 13.9% 15.2%

Note: Balance of operating assets includes business guarantees.

Equipment Leasing

Balance of Operating Assets

by Operating Segment

Equipment Leasing Specialty Financing

Domestic Sales Business Dep. (General leasing, installment and sales)

Domestic affiliates (Excluding three domestic automobile

financing companies)

Nippon Car Solutions Co., Ltd. (Automobile leasing mainly for corporate

customers)

Orico Auto Leasing Co., Ltd. (Automobile leasing for individual customers)

Nippon Rent-A-Car Service, Inc. (Rental car services business)

International Business

East Asia & ASEAN

Business Dep. (Affiliates in Asia)

Global Business Dep. (An affiliate in the U.S., transactions

with global vendors)

Finance Business Dep. ( Special fields such as ship, aircraft,

environment and energy, medical and

healthcare, etc.)

Real Estate Finance Dep. (Real estate financing and leasing)

Automobile Financing

Note: Balance of operating assets include business guarantees.

JPY Bn

FY2011 FY2012 FY2013

% Change *1

4,844.2 5,134.8 5,551.9 14.6%

484.4 570.0 660.7

Percentage 10.0% 11.1% 11.9%

Sumitomo Mitsui F&L 518.3 549.4 688.4

Percentage 10.7% 10.7% 12.4%

Mitsubishi UFJ Lease 489.3 544.3 638.5

Percentage 10.1% 10.6% 11.5%

ORIX 450.5 487.8 588.5

Percentage 9.3% 9.5% 10.6%

Other 2,901.7 2,983.3 2,975.8

Percentage 59.9% 58.1% 53.6%

30.6%

2.6%

Lease transaction volume

in Japan

TC-Lease36.4%

32.8%

30.5%

Leading domestic leasing market

1. Equipment Leasing 23

1

1 1

2

2

2

3

3 3

4 4 4

(Company data, Nikkei estimates)

Figures in boxes represent ranks throughout the fiscal year

Support for Investment in Cutting-edge

Facilities Using Lease Methods (METI)

【Reference: Cases selected for the measure】

Total number of contracts: 76

Total number of companies to contract: 37

Total number of leasing companies: 6 (TC-Lease group as 1)

Maximum value of compensation: approximately 900 million yen (equivalent

to 5% of anticipated value of capital investment )

Company(number of contracts) Installed Facility

euglena Co., Ltd. (1) Food manufacturing facility

IHI Corporation (5) Transportation equipment and parts

manufacturing facility

Shindengen Electric Manufacturing

Co., Ltd. (1)

Experiment equipment or measuring

instrument

Bit-isle Inc. (2) Equipment for telecommunication

ICHIKOH INDUSTRIES, LTD. (12) Manufacturing facility of transportation

machinery and appliances

Note: List of contracted cases for the measure (contracted during March 2014- September 2014)

【Production facility installed to euglena Co., Ltd.】 【Cases selected from TC-Lease Group】

Number of contracts: 21

Number of companies to contract: 5 Note: Above include the case of IHI Finance Support.

*1 Changes are comparison with FY2011

2. Specialty Financing and Future Image 24

Environment & Energy

Kyocera TCL Solar LLC operates eleven

mega solar power plants (21.6MW),

generating revenues of 300 million yen for

FY2014/2Q. Commenced floating solar power

plant business with Ciel et Terre, a French company.

Environment & Energy already has practicable

pipelines which volume equals to 100 billion yen.

Ship financing business shows steady

development mainly with ship owners abroad.

Established joint venture with CIT Group Inc.,

a U.S. company. Planning to invest 200 billion

yen two years in the future.

Provides one-stop shop in the aircraft business

through alliance with GA Telesis, LLC.

Ship and Aircraft Real Estate

Building healthy assets through

strengthening partnerships with

blue-chip companies

Improving profitability by establishing

its unique business domain

JPY Bn

2011/3 2012/3 2013/3 2014/3 2014/9 Future Image

(In three years)

353.5 432.8 520.0 570.0 603.4 1,000.0

Ship and Aircraft 60.1 88.4 130.1 193.9 226.6

Percentage 17.0% 20.4% 25.0% 34.0% 37.6%

Environment & Energy 7.4 7.3 7.9 13.5 15.3

Percentage 2.1% 1.7% 1.5% 2.4% 2.5%

Real Estate 208.0 233.4 280.7 245.7 251.6

Percentage 58.8% 53.9% 54.0% 43.1% 41.7%

Others * 78.0 103.7 101.3 116.9 109.9

Percentage 22.1% 24.0% 19.5% 20.5% 18.2%

Note: Others include assets from factoring business, securitization of receivables, medical and healthcare field, etc.

Balance of

Operating Assets

Business Model of Aircraft Business 25

Sourcing Stock Sale / Disposal

Airlines,

Aircraft

Leasing

Companies

Past

JOL Fee

Present

JOL Fee

Income from Finance transaction

Income from operating lease

Future

JOL Fee income

Financing spread income

Operating Lease Fee income

Re-sale income (middle/exit plan)

etc.

Business model innovation to boost up revenues (Stock Business to Stock and Flow Business)

TC-CIT AVIATION

JOL Investors

Secondary Market (Airlines, Aircraft leasing

companies)

Portfolio

Individual

sourcing

Fee Income

Re-Sale

Income

Stock Business

Income

Equity: 20%

Equity: 70%

Pre-Owned

Aircraft

Market

3. Balance of Operating Assets

in International Business

Steady Growth in Operating Assets

Operating assets in International Business

Local subsidiaries in East Asia and ASEAN

region

East Asia & ASEAN Business Department

Local subsidiary in U.S., Japan desk in India

Promotion of finance for global vendors

Global Business Department

Vendor finance is...

a leasing method that benefits customers by efficient

installations of leased property while vendors may enjoy

sales promotion effect.

Leasing companies compose lease programs to certain extent

with such vendors as manufacturers and dealers.

Keyword

Notes: Operating assets from ships and aircraft business are not included.

Operating assets from equity-method affiliates are included.

73.195.6

129.3 131.350.7

61.7

72.4 76.0

123.8

157.3

201.7 207.3

50.0

100.0

150.0

200.0

250.0

2012/3 2013/3 2014/3 2014/9

26

JPY Bn

Topics I: International Business

International Business Automobile Financing

Established Tong-Sheng Finance Leasing Co., Ltd.

(abbreviation: Tong-Sheng) as an automobile

financing company in China

Uni-President Group

(Taiwan)

TC-Lease

(Japan)

President Tokyo Corporation

(Taiwan)

Tong-Sheng

(Suzhou, China)

【General Information of Tong-Sheng】 Establishment: April 2014

Location: Suzhou, Chiangsu, PRC

Paid-in Capital: USD 100 million

Consolidated an Overseas Subsidiary in Thailand

Consolidated an overseas subsidiary in Thailand TISCO Tokyo

Leasing Co., Ltd., (abbreviation: TTL) which used to be an equity-

method affiliate on May 26, 2014.

【General Information of TTL】 Location: Bangkok, Thailand

Paid-in Capital: THB60,000 thousand

Establishment: April 1993

Shareholders: Century Tokyo Leasing Corporation (49%)

TISCO Financial Group Pcl. (49% by TISCO)

Sompo Japan Nipponkoa Insurance Brokers（Thailand）Co., Ltd.（2%）

TTL became our consolidated subsidiary because it met the

control basis of “Accounting Standard for Consolidated

Financial Statements”, as TC-Lease selected half of board of

directors at TTL.

TTL is continuously providing equipment leasing for local

companies while utilizing the customer base given by TISCO

Group and Japanese companies. Expanding its business base by

focusing on automobile leasing and vendor financing.

Promoted business for Uni-President Enterprise Corporation

Group, Taiwanese companies and Japanese companies in

cooperation with President Tokyo Corporation and Century

Tokyo Leasing China Corporation

51% 49%

100%

27

International Business

28 Topics II: International Business

International Business

Acquired 49% of the shares of BPI Leasing Corporation from BPI

and included the joint venture to the scope of TC-Lease’s

consolidation as an equity-method affiliate.

Expand Business to the Philippines through a Joint Venture

with Bank of the Philippine Islands (“BPI”),

One of the Philippines’ Largest Financial Institutions

New Name of the Company (Rename BPI Leasing Corporation):

BPI Century Tokyo Lease & Finance Corporation

Place of Business: Manila, the Philippines

Paid-in Capital: PHP 80,899 thousand (equivalent to approximately

JPY 200 million)

Shareholders:

TC-Lease (49%), BPI (51%)

Company Representative:

To be dispatched from TC-Lease

Principal Business:

General leasing and financing

Overview of the Joint Venture:

BPI Century Tokyo

Lease & Finance Corporation

51%

stake

49%

stake

The new company plans to double its outstanding balance of operating

assets of 26 billion yen in three years by integrating strengths of TC-

Lease and BPI

Suzhou New District Hi-Tech Industrial Co., Ltd., (*1) the parent of the

new company, is a government-affiliated company listed on SSE,

representing Suzhou region while government of Suzhou New District

(*2) takes over 40% of its stake.

Suzhou New District Hi-Tech Industrial Co., Ltd., decided to establish

the new company to provide leasing services for facilities in Suzhou

New District (*3) and companies in the district.

Overview of the New Company:

(1) Company Name: To be determined

(2) Location: Suzhou New District, Suzhou, Jiangsu, PRC

(3) Business: Finance leasing

(4) Paid-in Capital: CNY300 million (approximately JPY5 billion)

(5) Month of Foundation: November 2014 (planned)

(6) Shareholders: Century Tokyo Leasing Corporation (20%), Suzhou New

District Hi-Tech Industrial Co., Ltd. (50%), Suzhou High-Tech Venture

Capital Group Co., Ltd. (25%), Other (5%)

International Business

28

Acquire a Stake in a New Leasing Company

Established by Government-affiliated Company in China

*1 Suzhou New District Hi-Tech Industrial Co., Ltd. operates diverse businesses through its

group companies, including real estate development in Suzhou City, theme park management,

infrastructure and environmental businesses such as sewage facility management, and supports

businesses in the medical sector.

*2 The government of Suzhou New District is an Administrative Committee of Suzhou

National New & Hi-tech Industrial Development Zone.

*3 Suzhou New District aims to develop engineering industry. The district is an industrial

zone with 15,000 companies including global firms, which area has 258 square kilometers

and population of roughly 750,000. The district has residence and theme park.

29 4. Automobile Financing

Automobile Financing Companies (consolidated subsidiaries)

As of September30, 2014

2014/3 2014/9 Change

Guarantees and

Consolidated adjustment― -0.6 -0.5

Autobobile Leasing

Mainly for Corporate

Customers

Nippon Car Solutions, Co., Ltd.

(NCS)

TC-Lease 59.5%472

NTT 40.5%

(47)included in NCS

Voting ShareVehicles under

management

(thousands)

5.5Orico 50%

Rental Car

Services

Nippon Rent-A-Car Service, Inc.

(NRS)

TC-Lease 60.2% 41

(9)included in NCS

Other 39.8%

Automobile Leasing

for Individual

Customers

Orico Auto Leasing Co., Ltd.

(OAL)

TC-Lease 50%

-0.1

Subtotal

(domestic)504

Balance of Operating Assets (JPY Bn)

26.3 27.7 1.3

360.8 372.2 11.4

268.2 272.6 4.5

66.9 72.4

30 Financial Highlights of Automobile Financing Companies (full-year)

JPY Bn

Figures represent changes from the same

period of the previous fiscal yearFY2013 Change FY2013 Change FY2012/2Q Change

Revenues 162.2 6.4 29.2 6.8 25.2 0.7

Operating Income 8.6 1.0 0.8 0.1 1.3 -0.1

Ordinary Income 8.6 1.0 0.8 0.1 1.2 0.0

Net Income 5.3 0.8 0.5 0.1 0.8 0.1

2014/3 Change 2014/3 Change 2013/9 Change

Vehicles under Management

(thousand) 456 18 44 9 38 1

Balance of Operating Assets 268.2 17.5 66.9 13.4 30.2 1.2

OAL NRSNCS *1

*3 *3

*2

*4

*1 Includes results of former Tokyo Auto Leasing Co., Ltd.

*2 Based on non-consolidated full-year results

*3 Includes numbers of vehicles which OAL and NRS delegate management to NCS

*4 Shows balance of operating assets NRS manages

Shows full-year results of each automobile financing companies

Showing different figures from the result of FY2014 2Q due in timing of consolidation and

difference in accounting period

31 5. Global Assets

Global assets, assets from International Business and Specialty Financing particularly

ship and aircraft finance, have been doubled in the past two years and half

(7.6%)

(10.0%)

(12.2%)

(13.5%) (Figures in parentheses represent ratio of global assets in total operating assets)

Aircraft business has grown eight

times in the past two years and a

half. Furthermore, it is expected to

triple in volume in three years in the

future by the contribution such as

the joint venture with CIT Group

Inc., the U.S. company.

32

Financial Results

Appendix

33 Consolidated Statements of Income

Millions of Yen *1 Details of Non-operating income and losses Millions of Yen

Value %

Leases 313,812 379,775 65,962 21.0 (Non-operating income)

Installment Sales 33,390 38,240 4,850 14.5 Interest income 31 69 38

Financing 7,863 10,958 3,095 39.4 Dividend income 522 557 35

Other 4,668 9,568 4,899 104.9 Equity in earnings of affiliates 2,757 177 (2,579)

Total revenues 359,735 438,543 78,808 21.9 Foreign exchange gains 506 998 492

Leases 279,528 328,831 49,303 17.6 Other 572 253 (318)

Installment Sales 31,004 35,663 4,658 15.0 Total non-operating income 4,390 2,057 (2,332)

Financing 427 534 106 24.8 (Non-operating expenses)

Other 3,549 6,854 3,305 93.1 Interest expense 286 309 22

Interest expense 4,377 4,782 405 9.3 Expenses on derivatives

other than for trading or hedging 1,038 675 (362)

Total costs 318,888 376,667 57,779 18.1 Other 106 142 36

Gross profit 40,847 61,876 21,029 51.5

Personnel expenses 11,065 19,143 8,077 73.0 Total non-operating expenses 1,431 1,127 (303)

General expenses 7,046 14,292 7,246 102.8 *2 Details of Extraordinary income and losses Millions of Yen

Credit costs (824) (495) 329 (39.9)

SG&A expenses 17,286 32,940 15,653 90.6

Operating income 23,560 28,935 5,375 22.8 (Extraordinary income)

Non-operating income 4,390 2,057 (2,332) (53.1) *1 Gain on bargain purchase 1,411 150 (1,261)

Non-operating expenses 1,431 1,127 (303) (21.2) *1 Gain on sale of investments in securities 381 27 (354)

Ordinary income 26,518 29,865 3,346 12.6 Other 55 9 (46)

Extraordinary income 1,848 187 (1,661) (89.9) *2 Total extraordinary income 1,848 187 (1,661)

Extraordinary losses 1,431 34 (1,396) (97.6) *2 (Extraordinary loss)

Income before income taxes 26,936 30,017 3,081 11.4 Loss on retirement of non-current assets 4 14 10

Total income taxes 8,846 11,188 2,341 26.5 Loss on valuation of golf club membership - 9 9

Income before minority interests 18,089 18,829 739 4.1 Impairment loss 1,219 - (1,219)

Minority interests in income 506 2,274 1,767 349.2 Other 207 10 (197)

Net income 17,582 16,555 (1,027) (5.8) Total extraordinary losses 1,431 34 (1,397)

Note: Amounts less than one million yen are omitted.

Account FY2013/2Q FY2014/2Q Change

Account FY2013/2Q FY2014/2QChange

Account FY2013/2Q FY2014/2Q Change

Consolidated Balance Sheet 34

Value % Value %

Cash on hand and in banks 79,840 93,324 13,484 17 Notes and accounts payable-trade 222,505 159,656 (62,848) (28)

Accounts receivable - installment sales 225,937 236,720 10,783 5 Short-term borrowings 415,220 446,904 31,684 8

Lease receivables and investment assets 1,461,053 1,443,251 (17,802) (1) Current portion of bonds 71,616 93,800 22,184 31

Loans receivable 474,155 501,656 27,500 6 Current portion of long-term debt 281,763 291,020 9,257 3

Operating investment securities 111,965 108,261 (3,704) (3) Commercial Papers 739,300 751,600 12,300 2

Other operating assets 5,097 5,000 (97) (2) Payables under fluidity lease receivables 63,398 62,701 (697) (1)

Accounts receivable - lease 17,612 16,078 (1,534) (9) Current portion of long-term payables under fluidity lease receivables 628 1,082 454 72

Short-term investment securities 25,140 4,360 (20,780) (83) Accrued income taxes 14,781 10,215 (4,566) (31)

Inventories 1,455 1,494 39 3 Deferred tax liabilities 2,539 2,534 (4) (0)

Deferred tax assets 4,377 4,275 (101) (2) Deferred profit on installment sales 12,217 12,411 193 2

Other current assets 62,191 61,600 (591) (1) Allowance for bonuses 2,096 2,538 442 21

Allowance for doubtful accounts (3,410) (3,092) 318 - Allowance for directors' bonuses 168 93 (75) (45)

Other provision 328 436 107 33

Other current liabilities 47,754 53,055 5,301 11

2,465,415 2,472,930 7,515 0 1,874,318 1,888,051 13,732 1

Leased assets 322,535 342,282 19,746 6 Bonds payable 106,905 106,002 (903) (1)

Advances for purchases of property for lease 586 2,866 2,280 389 Long-term debt 530,831 522,561 (8,269) (2)

Other operating assets 6,770 6,557 (212) (3) Long-term payables under fluidity lease receivables 2,009 3,242 1,232 61

Own assets in use 8,061 9,295 1,233 15 Deferred tax liabilities 918 3,317 2,398 261

有形固定資産合計Total property and equipment 337,954 361,002 23,047 7 Allowance for directors' retirement benefits 291 407 115 40

Computer programs leased to customers 290 269 (21) (8) Allowance for automobile inspection costs 951 956 5 1

Goodwill 4,871 4,466 (404) (8) Net defined benefit liability 7,170 7,611 441 6

Other intangible assets 5,416 5,439 23 0 Other long-term liabilities 75,890 79,784 3,893 5

無形固定資産合計Total intangeble assets 10,578 10,175 (403) (4) 724,969 723,883 (1,086) (0)

Investments in securities 42,511 44,745 2,233 5 2,599,288 2,611,934 12,646 0

Claims provable in bankruptcy or rehabilitation 4,305 3,985 (319) (7) Common stock 34,231 34,231 - -

Deferred tax assets 3,895 4,168 273 7 Capital surplus 5,537 5,537 - 0

Other investments 23,040 24,077 1,037 5 Retained earnings 204,606 219,472 14,866 7

Allowance for doubtful accounts (2,929) (2,750) 178 - Treasury stock (1,999) (1,967) 31 -

242,376 257,274 14,898 6

Net unrealized holding gains on securities 10,338 13,355 3,016 29

Net unrealized gains on derivative instruments (761) 47 809 -

Translation adjustments 1,057 (191) (1,248) -

Remeasurements of defined benefit plans (562) (446) 116 -

10,071 12,765 2,694 27

Share subscription rights 312 491 179 57

Total investments and other assets 70,824 74,227 3,403 5 Minority interests 32,724 35,869 3,145 10

Total non-current assets 419,357 445,405 26,047 6 285,484 306,401 20,917 7

Total assets 2,884,773 2,918,336 33,563 1 2,884,773 2,918,336 33,563 1

Total accumulates other comprehensive income

Total net assets

Total liabilities and net assets

Total current assets Total current liabilities

Total long-term liabilities

Total liabilities

Total shareholders' equity

Millions of Yen

Accounts 2014/3 2014/9Change

2014/3 2014/9Change

Accounts

35

Create New Business with Leasing