realchange_2025

Medium-Term Management Plan

“Real Change 2025”

Lead into the future

Real

Change

2025

Real Change by connecting

into the future

Advocating “Real Challenge, Real Change” as our

management philosophy, JA Mitsui Leasing

continues to work towards “the future business

envisioned by our customers”.

Medium-Term Management Plan “Real Change

2025” starting from April 2020 connects our internal

and external resources through ﬁve Changes to

maximize the strength of the organization.

Change how we work

together

Change 02

Five Changes

We will accelerate the shift where everyone understands the

proﬁtability of the dierent departments and accelerates

changes to a business model to pursue more proﬁts.

Change 01

Business model shift

We will expand consolidated proﬁts for the entire group by

going beyond existing concepts and boundaries between

groups, creating a drive and great outlook for the business.

Expansion of consolidated proﬁt

Change Mindset

We can quickly understand customer management issues and

social trends through sharing and collaborating with the group.

Sharing information between groups

By continuously reviewing operations and business, we aim to

improve productivity, increasing the amount of business we can

do with the same manpower.

Improving productivity through constant review

of operations and business

Looking ahead to the future, we will identify what we will

protect and what we will attack, selecting the ﬁelds in which we

will focus.

Change 03

Identify what to protect and what to attack

We resolve management issues as quickly as possible by

enhancing communication with customer management.

Provide solutions to customers'

management challenges

Change the Target

We will focus on initiatives on new business areas that capture

social trends and the characteristics of the ﬁelds and regions in

which the sales department is responsible.

Change 04

Focus on new business domains

We will expand overseas business by developing “business

model based on products, businesses and ﬁnance” cultivated

through the previous medium-term management plan as a

group.

Expansion of overseas business

Change the ﬁeld

Five Changes

Compete as a Team /

aiming connected

organization

Change 05

By "connecting/cooperation“ information, know-how, networks,

and human resources within the Group in all ﬁelds, we will

maximize the commitment and uniqueness of the JAML group

and maximize our organizational strength.

Demonstrate the JAML Group's commitment and

originality maximize organizational strength

Five Changes

Business

partners

Customers

in new areas

Existing

customers

Shareholder

(Norinchukin Bank

and Mitsui & Co.)

JAML

Information network of

shareholders, Leveraging

ﬁnancial resources to compete

as an organization

Sharing useful

information internally and

showing originality

Developing frontier area

business and create a new

revenue base

Creating a new revenue

base through initiatives

that contribute to regional

revitalization and regional

revitalization

Specialized

Sales

Department

Aliate

companies

Functional

Divisions

Area

Sales

Department

Link the expertise and

information of each division to

compete by the organization

Cooperation

between divisions

Creating new value by

connecting generations and

sharing their skills

Connection

between generations

Vision for Medium-Term Management Plan “Real Change 2025”

Connect and Cooperate

Emphasizing Speed

All JAML executives and employees are keen to "connect and cooperate" with

speed in order to maximize the group's "commitment and uniqueness".

Commitment

Asset value

Early stage Biz

Regional

revitalization

Uniqueness

Network of

the Norinchukin Bank

and Mitsui & Co.

JA group

infrastructure

Ability to

originate projects

Connect and

Cooperate

JAML

Norin-

chukin

Bank

Mitsui

& Co.

Strengths

Network utilization

of shareholder

Subscription model

development

Strengthen origination

capability and network

Fulﬁlment of revolving

type businesses

Domestic

area

Auto

Food

and

Distribution

Medical

Machinery Overseas

Ships

and

Aircraft

Further development of existing business ﬁeld

and improve productivity

Real

estate

Energy

North

America

Mobility

New

agricultural

business

Logistics

Expansion

in Strategic Fields

Challenge in

New Fields

Vision for Medium-Term Management Plan “Real Change 2025”

Change the business model

Promote transformation of business model and establish new revenue base

by maximizing use of competitive resources in organization.

Contribute to the Society

through the strength of Connect and Cooperate

Real Change 2025

Slogan

Lead into the future

Results of major Initiatives Current challenges

March 2018

JPY 24.4B

USD 226 MM

JPY 24.0B

USD 222 MM

JPY 23.4B

USD 217 MM

1.48% 1.56% 1.51%

March 2019 March 2020

(@JPY108/USD)

Basic Policies I, II and III

Review of previous Medium-Term Management Plan “Real Change 2020”

Growth of revolving business model in Real Estate related market.

Expansion of targeted products, such as the environmental ﬁeld,

to earn exit management revenue.

Due to intensiﬁed competition with banks and ﬁrms in other

industries and “super” monetary easing, we are unable to expect

sustainable growth simply by extending the pursuit of volume.

Development of operational risk management systems.

Enhancement of business plan progress management

organization.(Establishment of proﬁt and loss by division)

Reorganization of domestic aliates to improve management

eciency.

Strengthen sales and business management by dispatching

executives to overseas aliates.

Basic Policy IV

It is necessary to thoroughly implement the strategic allocation of

group management resources (human, material and capital) and to

improve labor productivity by promoting work style reform.

Basic Policy V

In order to improve productivity by optimizing business processes

and eliminating ineectual things , it is necessary to make

constant eorts, such as actively utilizing the latest IT technology.

Expansion of new business areas utilizing overseas platforms.

Accelerate investments in startup companies in ICT related areas.

Direction

Five Key

Policies

We will grow as a distinctive and unique enterprise

that is one of the leading companies in the industry.

Targeted Annual Proﬁt after Tax

JPY 21~23 Billion JPY 30 Billion

March 31, 2023

Equivalent to USD 194~213 MM Equivalent to USD 278 MM

March 31, 2025

Key Policy

Outline of new Medium-term Management Plan

Quantitative

Target

Improve external evaluations and increase the sense of well-being of

executives and employees while pursuing proﬁtability and growth.

Responding to a society that is becoming borderless

Key Policy

Expand business in specialized ﬁelds by changing business models

Key Policy

Initiatives that contribute to regional revitalization and regional activation

Key Policy

Strategically allocating management resources and strengthening the diversity of

human resources to support growth

Key Policy

Optimization and sophistication of the business foundation and management

structure that support corporate growth

Strengthen overseas business development

centered on North America

Business development / expansion as a general leasing company

in the United States

Key Strategy

Key Policy I Responding to a society that is becoming borderless

Vendor Financing initiatives lead by FFCSI as a platform.

Expand business by entering into new regions / countries.

Develop business by fully utilizing shareholder relations. (network of the Norinchukin

Bank and Mitsui & Co.)

Develop leasing business of equipment that is widely traded at secondary market, and

accumulate know-how related to pricing of residual value, then transfer know-how to

other markets.

Initiatives in the DX related business ﬁeld

Accelerate DX-related projects

Key Strategy

Expansion of partnerships with players in the industry and establishment of alliance

structure.

Expanding investment in start-up companies.

Entering into Mobility related business

Promotion of MaaS, CASE related ﬁnancing.

Create new business by fully utilizing JAML group's comprehensive strengths.

Key Policy II

Initiatives that contribute to regional revitalization

and regional activation

Strengthening businesses to solve

local social challenges

Accelerate renewable energy and self-consumption energy

related businesses

Key Strategy

Entering into reginal production / consumption electric power supply business.

Contribution to regional revitalization and employment promotion through initiatives

such as biomass power generation.

Development and promotion of regional revitalization business with leading partners

including Japanese farmers and their agricultural co-operative organizations (“JA Group”) .

Promotion of initiatives that contribute to SDGs.

Accelerating businesses that contribute to the growth of

local agriculture, forestry, and ﬁshery industries

Providing solutions to JA Group organizations and management challenges.

Develop regional agriculture network such as producers and production areas.

Key Policy III

Expand business in specialized ﬁelds by

changing business models

Expansion of asset business leveraging

origination functions

Secure stable real estate revenues and develop

new revenue base

Key Strategy

Stabilize earnings through revolving type businesses based on asset value.

Business Development in cooperation with JA Group.

Expansion of business through logistics innovation

and restructuring

Through the possession of logistics facilities and alliances with other companies,

create new businesses.

Increase presence in the distribution value chain.

Further activation of existing business base

and improve productivity

Key Strategy

Activate existing business base and improve productivity by utilizing expertise and

knowledge in specialized ﬁelds.

Promoting Partner Strategy as a source of competitive advantage.

Key Policy IV

Key Policy IV, V

Strategically allocating management resources and

strengthening the diversity of human resources to

support growth

Strategic allocation of management resources,

promotion of measures to raise human resources

and motivate employees

Key Strategy

Strategic allocation of group management resources.

Promote personnel policies and work-life balance to motivate employees.

Improving productivity by promoting work style reform.

Key Policy V

Optimization and sophistication of the business foundation

and management structure that support corporate growth

Improving productivity through business process reforms,

optimizing overall operations, and improving management

system to respond to changes in the environment.

Key Strategy

Enhancing group governance.

Optimize business processes, use IT to upgrade management and improve productivity by

strengthening sales support structure.

Enhancement of compliance and risk management structure in response to expansion of business

domains and changes.

Establishment of a management structure that contributes to the realization of a sustainable society.