Top Message

President and Chief Executive Officer
Hiroaki Oda

The Fuyo Lease Group has achieved steady growth over the past five years since the previous Medium-Term Management Plan. This growth of approximately double the ordinary profit has been supported by the strengthening of the Fuyo Lease Group’s unique sales capabilities and of our corporate foundation.

For me, the real pleasure of the job is establishing a good rapport with customers through repeated proposals and successfully completing projects that are useful to them. Repeatedly and thoroughly, every time the occasion arises, I tell our employees that in order to build a pipeline with our customers, we should know our customers well and gain their trust by listening to their concerns, continuing to offer our wisdom, and keep making proposals until they are satisfied with our services. Each and every one of our employees has become familiar with these guiding principles, and as they gain experience working on their own, they are now able to provide solutions that truly address our customers’ business challenges.

To achieve the goal of strengthening our sales capabilities, we added a company that provides BPO services to the Group, and in addition to the business fields of human resources, accounting, general affairs, and sales, we also provide training and other video creation services for business use, which has strengthened our sales style which maintains an ongoing customer pipeline. At the same time, the BPO service itself became a major pillar of business and enabled us to strive for even higher goals.

In fiscal 2022, we launched our Medium-Term Management Plan Fuyo Shared Value 2026. The plan fully incorporates the concept of CSV (Creating Shared Value), which aims to improve corporate value by addressing social issues through business. This is the Fuyo Lease Group’s growth strategy, which aims to achieve strong and sustainable profit growth by equally pursuing financial (corporate value) and non-financial (social value) targets.

For business domains that drive growth, we will intensively invest management resources in the domains of Mobility and Circular Economy for strategic growth enabled by capturing tectonic social changes and in Energy & Environment, BPO/ ICT, and Healthcare for accelerated growth enabled by capturing market trends, with the aim of realizing dramatic growth in profits.

In fiscal 2022, the first year of the plan, we achieved record-high business results and surpassed those of fiscal 2021. This was mainly the result of steady advancements through businesses in the business domains that we have positioned as growth drivers. We achieved both quality and quantity by improving ROA and increasing operating assets, realized steady profit growth while improving profitability, and were able to pass through the first year of the plan at a steady pace, which I think is highly commendable.

Looking ahead, there is a strong tailwind in the Energy & Environment domain, as exemplified by the agreement reached at the G7 Summit by a total of seven countries to aim to introduce three times the amount of solar power and seven times the amount of offshore wind power compared to 2021 by 2030. Collaborations with partners both within Japan and overseas are proceeding in various formations, and we will work on expanding business further.

In the Healthcare domain, business operators’ funding issues have surfaced since the termination of subsidies related to COVID-19, and the digitalization of operations is being delayed. We will combine the Group’s BPO functions and healthcare-related services and contribute to earnings improvements and the streamlining of operational duties. In fiscal 2022, we participated in the creation of a region-specific healthcare fund, but the construction and maintenance of medical and nursing infrastructure is an important societal topic. We will work to solve societal issues through methods including collaboration with regional financial institutions that support local areas.

In the Circular Economy domain, determining how to establish a highly profitable business model and achieve economic value along with social value will become an important topic. We have now released a “Circular Economy Lease,” which is a product that works to promote the realization of a circular society together with customers. Although the current scope of the lease is limited to items such as personal computers, we will work to expand the scope and simultaneously create both social and economic value.

In the Mobility domain, rather than simply pursue short term EV figures, we will work to build a coalition with alliance partners in preparation for the expansion of the EV market. Overseas, we will expand business on a global basis in the logistics domain by turning our equity-method affiliate Pacific Rim Capital into a consolidated subsidiary. In addition, looking toward the expansion of these new business domains, we will strongly promote collaboration with partner companies and strengthen insufficient functions.

Since becoming president, I have strongly transmitted a message of wanting to become a corporate group that is trusted. At the same time, we clarified our Mission, Vision and Values, and worked to improve the awareness of each and every employee. In the past year, we held Group-wide workshops, considered overlaying each individual employee’s vision onto the Group’s Vision, and deepened their understanding of the Vision as something personal. Additionally, in order to implement the Values that serve as our action guidelines to achieve the Vision, we have repeatedly conveyed the “10 RM Practices” (see chart below), which will lead to concrete actions, and I feel that this has enabled us to begin sharing a direction and a specific way of moving forward.

We will deepen understanding of the relationship between our Mission of contributing to realizing a prosperous society and sustainable growth and our daily operating activities. Achieving our Values and feeling that they connected to the Vision has led to an increase in the number of people who see the Vision as something personal, but I would also like to persistently talk about the Mission beyond that. In order for the Group to continually develop, we must simultaneously pursue economic and social value, earn the trust of customers and society, and become a necessary presence. I believe that our ideal vision means value creation and sustainable growth centered on trust and CSV.

To those of us in the service business, people are the most important asset, and the thing that we must spend the most amount of physical energy on is development. The human resources sought by Fuyo Lease are, to sum it up, people who are trusted. Although we have set a target to increase the per-person human resource development-related expenses to 300% of the fiscal 2021 level within five years, it is important to triple the physical strength of people spent on training and learning in addition to the monetary amount. Those at the top will spend three times the amount of physical energy themselves, and those who come to understand will become missionaries who spread the message to spend physical energy. That is why I believe people who value trust will grow.

That is not a unilateral process. For example, it is important to listen carefully to what young employees are thinking, and to deepen dialogue while responding appropriately. I feel that by engaging in so-called “bouncing off ideas” conversations with employees, they will be able to grow and relationships of trust will be built between us, while at the same time I will become able to organize my own thoughts and gaining new ideas.

The same applies to diversity. By “bouncing off ideas” with people in different positions with different values, we can become aware of new ways of thinking and learn. Listening to the voices of various people including women and foreigners will result in the promotion of diversity and lead to the discovery and understanding of new social value. That is also a very valuable concept for the development of CSV which the Group cherishes.

There are two aspects to DX initiatives, which are “DX for customers” and “In-house DX.” “DX for customers” is highly compatible with BPO/ICT, and is capable of meeting customers’ DX needs in combination with the functions of affiliated Group companies. Meanwhile, in businesses that solve customers’ burdensome tasks, we must promote “In-house DX,” shorten lead times, streamline operational tasks and create new value to increase profit. We will visualize internal operational processes, identify the issues, and proceed with digitalization. To do that, I think it is important to work on improving the awareness of each individual Group employee and to make each of them view the Mission as something personal.

The Medium-Term Management Plan fully incorporates the concept of CSV, which aims to jointly improve corporate value by solving social issues through business. The growth strategy of the Fuyo Group is to aim for robust and sustainable profit growth by pursuing financial goals, or corporate value, and non-financial goals, or social value, equally. The plan declares our aim to develop our business, expand into new business areas, and pursue sustainable growth as a company while solving social issues. By firmly executing the current Medium-Term Management Plan, we will achieve growth as a company and move forward toward our mission almost like walking continually towards the horizon.

Going forward, we will continue to increase the trust of our shareholders, customers, partners, and employees who are our stakeholders, build win-win relationships, and aim to be “Fuyo Lease, which is trusted and always chosen.” We hope that you will look forward to the future of the Fuyo Lease Group.