Business Environment

Looking ahead, the structure of society will be dramatically reshaped as we approach a low-carbon and recycling-oriented society. In this climate, we should see even more opportunities to create and provide new solutions.

Strengths and Strategies

In the solar photovoltaic power generation field, we will use our insights nurtured in our projects in Europe to develop such projects in emerging countries. In the next-generation battery business, we are building value chains for lithium-ion batteries and pioneering new businesses derived from electric vehicles. At the same time, we are promoting smart community projects around storage batteries.

In the environmental recycling business, we have launched a recycling business for used consumer electronics and home appliances in Tianjin, China. We are now working to laterally expand this recycling business to all of China. In the future, we aim to further expand this business all across Asia as well.

In the emissions trading and greenhouse gas reduction business, we are working to develop commercial CO2 selective permeable membranes and establish this technology as a viable business. CO2 selective permeable membranes are expected to make a large contribution to energy conservation.

Actions for Target Achievement

In the solar photovoltaic power generation business, we have commenced operation of a 31 MW photovoltaic power generation project in France, following projects in Spain and Italy.

4R Energy Corporation, a joint venture with Nissan Motor Co., Ltd., unveiled products including a home-use storage battery system using lithium-ion batteries for electric vehicles, with plans to enter this market. We have also established a new company for developing charging infrastructure for electric vehicles and started businesses with an eye to popularizing electric vehicles.

Business Environment

In both fields of leasing and commodities trading, although demand in Japan has peaked, the markets of emerging countries in Asia and other regions are expanding. Demand for aircraft especially is expected to continue increasing going forward, mainly driven by passenger increases in step with the growth of emerging countries and the rise of low cost carriers.

Strength and Strategies

We have steadily expanded our aircraft leasing portfolio targeting worldwide markets, particularly through SMFL Aircraft Capital Corporation B.V., a joint venture with SMFL. Furthermore, we have also extended our collaboration with SMFL beyond aircraft leasing to new fields. Moreover, in the commodities field, we will use derivatives to provide risk mitigation solutions for business operators (including those in Asian countries) who are exposed to commodity price volatility.

Actions for Target Achievement

Together with the Sumitomo Mitsui Financial Group, Inc. (SMFG), we acquired the aircraft leasing business of the Royal Bank of Scotland plc (RBS). Following the acquisition, we will become one of the largest players in the aircraft leasing business with the world's fourth largest fleet of aircraft in possession and under management. By using SMFL's strong financial base and our many years of expertise in aircraft operating leases, we aim to capture the growing demand for aircraft in emerging countries through this acquisition, as we strive to further expand business.

Business Environment

Supply chains have diversified as a consequence of the Great East Japan Earthquake and flooding in Thailand. At the same time, we expect more Japanese companies to shift production overseas (especially among the emerging countries in Asia) as the yen continues to appreciate.

Strengths and Strategies

We are working diligently to enhance both the value-added infrastructure and services at our industrial parks in countries such as Vietnam, the Philippines and Indonesia. In addition to the sale of lots, we provide factories for rent to reduce the upfront investments, and hold regular tenant company meetings, for our clients.

Furthermore, we intend to expand existing industrial parks and develop new ones, along with expanding the logistics business in tandem with these measures.

Actions for Target Achievement

Having completed the land reclamation work, we will commence construction of a new logistics center at the Thang Long Industrial Park II in Vietnam.