Tokyo Century : Consolidated Financial Results (Kessan Tanshin) for the Fiscal Year Ended March 31, 2023

These consolidated financial results are an English translation of excerpts from the Japanese "Kessan Tanshin" including attachments filed with the Tokyo Stock Exchange, solely for the convenience of readers outside Japan.

This report has been prepared in accordance with accounting principles and practices generally accepted in Japan. Amounts less than ¥1 million have been omitted unless otherwise stated.

Consolidated Financial Results (Kessan Tanshin)

for the Fiscal Year Ended March 31, 2023

[Japan GAAP]

									May 12, 2023
Name of Listed Company: Tokyo Century Corporation			Stock Exchange Listing: Tokyo
Securities Code: 8439
(URL: https://www.tokyocentury.co.jp/en/)
Representative: Koichi Baba, President & CEO, Representative Director
Contact: Tatsuya Hirasaki, Director and Managing Executive Officer		Phone: [phone]
Date of Annual General Meeting of Shareholders: June 26, 2023
Scheduled Payment Date of Dividends: June 27, 2023
Scheduled Reportable Date of Securities Report: June 26, 2023
Preparation of Supplementary Reference Documents: Yes
Holding of Earnings Announcement: Yes (for institutional investors and analysts)
1. Consolidated Performance				(Amounts less than one	million yen are omitted.)
		Fiscal 2021		Fiscal 2022		YoY
				(Millions of yen)			(Percentage change)
(1) Consolidated business results:
	Revenues			1,277,976	1,324,962		3.7%
	Operating income			82,675		91,221			10.3%
	Ordinary income			90,519	106,194		17.3%
	Net income attributable to owners of parent		50,290		4,765			(90.5)%
	Basic earnings per share (Yen)			411.56	38.95
	Diluted earnings per share (Yen)			409.74		38.80
	Rate of return on equity (ROE)			8.1%	0.7%
	Return on assets (ROA)			1.6%		1.8%
	Operating income to revenues			6.5%	6.9%
(2)	Consolidated financial condition:
	Total assets			5,663,787	6,082,114
	Net assets			795,580		888,985
	Shareholders' equity ratio			11.9%	12.5%
	Net assets per share (Yen)			5,507.50		6,222.16
(3) Consolidated cash flows:
	Cash flows from operating activities			227,383		(31,429)
	Cash flows from investing activities			(16,075)	(31,308)
	Cash flows from financing activities			(201,421)		6,926
	Cash and cash equivalents at end of year	240,047	201,280
Note:
Total comprehensive income
Fiscal 2022 ended March 31, 2023:	¥116,160 million	(10.1)%
Fiscal 2021 ended March 31, 2022:	¥129,251 million	225.0%
Equity in earnings of affiliates
Fiscal 2022 ended March 31, 2023:	¥18,306 million
Fiscal 2021 ended March 31, 2022:	¥9,631 million
Shareholders' equity
Fiscal 2022 ended March 31, 2023:	¥761,597 million
Fiscal 2021 ended March 31, 2022:	¥673,024 million

- 1 -

2. Dividends

			Dividends per Share (Yen)		Total Dividends	Payout Ratio	Dividend on
	First		Second	Third				Net Assets Ratio
	Quarter		Quarter	Quarter	Year-End	Total	(Millions of yen) (Consolidated)	(Consolidated)
Fiscal 2021	-		71.00		-	72.00		143.00	17,474	34.7%	2.8%
Fiscal 2022	-	71.00	-	72.00	143.00	17,503	367.1%	2.4%
Fiscal 2023 (Forecast)	-		100.00		-	100.00		200.00		35.0%

3. Consolidated Results Forecast for the Fiscal Year Ending March 31, 2024 (As of May 12, 2023)

		Full year	YoY
		(Millions of yen)	(Percentage change)
	Ordinary income	110,000	3.6%
	Net income attributable to owners	70,000	-
	of parent
	Basic earnings per share (Yen)	571.89

Notes

1. Changes in status of significant subsidiaries during the fiscal year under review (changes in status of specified subsidiaries resulting in change in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates, and retrospective restatements
3. 1. Changes in accounting policies due to reforms of accounting standards: Yes
   2. Changes in accounting policies other than item 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatements: None
      Note: For details, please refer to "3. Consolidated Financial Statements and Primary Notes (5) Notes to the Consolidated Financial Statements (Changes in Accounting Policies)" on page 18.
4. Number of shares of common stock issued
5. 1. Number of shares issued at the end of the fiscal year (including treasury stock)

As of March 31, 2022:	123,028,320 shares
As of March 31, 2023:	123,028,320 shares
2) Number of treasury shares at the end of the fiscal year
As of March 31, 2022:	826,799 shares
As of March 31, 2023:	627,532 shares
3) Average number of shares outstanding during the fiscal year
Fiscal year ended March 31, 2022:	122,194,693 shares
Fiscal year ended March 31, 2023:	122,361,239 shares

- 2 -

(Reference: Outline of non-consolidated business results)

1. Non-consolidated Performance

		Fiscal 2021	Fiscal 2022		YoY
		(Millions of yen)		(Percentage change)
(1) Non-consolidated business results:
Revenues	427,622	395,387	(7.5)%
Operating income		27,302	19,550		(28.4)%
Ordinary income	35,543	32,286	(9.2)%
Net income		20,319	25,257		24.3%
Basic earnings per share (Yen)	166.29	206.41
Diluted earnings per share (Yen)		165.55	205.64
(2) Non-consolidated financial condition:
Total assets		3,029,019	2,988,353
Net assets	408,979	410,348
Shareholders' equity ratio		13.4%	13.7%
Net assets per share (Yen)	3,326.85	3,335.84
Note:
Shareholders' equity
Fiscal 2022 ended March 31, 2023:	¥408,309 million
Fiscal 2021 ended March 31, 2022:	¥406,546 million

These financial results are outside the scope of audit by a certified public accountant or an audit corporation.

Explanation related to forward-lookingstatements and other items warranting special mention(Regarding forward-looking statements)

The statements concerning future performance presented in this document are prepared based on currently available information and certain preconditions that Tokyo Century Corporation and its Group companies believe to be reasonable at the publication of this document. Actual results may be substantially different from any projections presented herein due to various factors.

(Methods for obtaining supplementary reference documents)

The supplementary reference documents were disclosed on the TDnet on the same date as this document (Japanese only) and were also posted on the Company's website.

The Company plans to hold an earnings call (audio conference) for institutional investors and analysts on Tuesday, May 16, 2023.

- 3 -

1. Overview of Business Results

• In this section, 1. "Overview of Business Results," the amounts expressed in units of millions have been rounded off to the nearest hundred million.

(1) Overview of Business Results for the Fiscal Year under Review

The Japanese economy in the fiscal year ended March 31, 2023 remained uncertain due to factors such as a resurgence of the new coronavirus infections, a lockdown in Shanghai, Russia's invasion of Ukraine followed by hikes in international commodity prices, surging global inflation and interest rate hikes mainly in Europe and the U.S.

Under these circumstances, the Tokyo Century Group promoted the following initiatives to strengthen the sales base and strengthen the management base, in the last year of a three-year "New Fourth Medium-Term Management Plan" started in fiscal 2020.

1) Strengthening of sales base

[Equipment Leasing]

• We have started handling a lease with carbon credits to help customers with their decarbonized management and corporate value enhancement. This lease with carbon credits combines the lease and auto lease provided by the Company and its group companies, with offsetting service for carbon credits under the J-Credit scheme, etc. CO2 emitted with the use of leased properties including production facilities, IT equipment, and vehicles could be offset by using this service. In addition to providing optimal lease with carbon credits to meet customers' goal, we can facilitate their carbon offsetting by undertaking their administrative processes, such as purchasing and invalidating credits.
• We have established with JFE Engineering Corporation, Urban Energy PV LLC ("Urban Energy PV") a solar power generation joint venture for domestic corporate PPA business, and started collaboration. In this collaboration, Urban Energy PV will own solar power facilities and operate power generation business to supply electricity to PPA counterparties which, in turn, will supply renewable electricity and provide operation and maintenance (O&M) services to electricity consumers. Urban Energy PV will install solar power generation systems on the rooftop or on the ground for such customers, and provide electricity generated through PPA counterparties. We will further ensure long-term and stable supply of renewable electricity to customers who are considering to use electricity derived from renewable sources in addressing carbon neutrality etc., while further expanding the domestic corporate PPA business, to contribute to achieving a decarbonized society.

[Mobility & Fleet Management] (Renamed Automobility from April 1, 2023)

• Nippon Car Solutions Co., Ltd. ("NCS"), our group company, and Go Inc. (former Mobility Technologies Co., Ltd.) signed a client referral agreement for the next generation AI dashboard camera service called "DRIVE CHART," provided by Go Inc., and then started offering DRIVE CHART to business partners such as leasing counterparties of NCS. DRIVE CHART automatically detects dangerous occasions that are very likely to cause traffic accidents, and analyze drivers' driving tendency based on various data captured from the designated dashboard camera. Visualization of reckless driving such as ignoring a stop sign, helps drivers to identify their driving habits that are difficult to recognize, and enable central management by operation managers as well as drivers. Proposing a better driving method optimal for each driver will help reduce traffic accidents, contributing to achieve a safer, and more comfortable and convenient mobility society.
• We concluded a business alliance agreement with Kansai Electric Power Company, Incorporated. on stationary storage battery business utilizing used batteries of electric vehicles ("reuse batteries"). In this alliance, we consider applying a larger than ever stationary battery as a grid-scale storage battery, and also provide batteries to customers such as building and factory owners. In this collaboration, we will procure the batteries to be reused from leased electric vehicles whose contracts have expired through our group companies, and consider providing a stationary storage battery service. While the use of renewable energy is expanding in Japan, how to balance its supply and demand is an issue, due to the large variation of power output by time slot and climate, etc. In terms of managing the supply-demand balance to stabilize grid power and effectively using the electricity produced, the stationary storage battery is expected to become increasingly important going forward.

- 4 -

[Specialty Financing] (Including Environmental Infrastructure)

• We have established "A&Tm Co. Ltd." jointly with Tokyo Gas Engineering Solutions Corporation and KYOCERA Communication Systems Co., Ltd., to provide asset management and technical management service in solar power generation business. By providing one-stop service of asset and technical management, we will enable maximization of power generation and stable and long-term use of power generation facilities to improve the profitability of solar power generation operators.
• Mitsubishi Estate Co., Ltd. and Tokyo Century Corporation have selected Dorchester Collection, the ultra- luxury hotel brand, to operate the hotel in the upper floors of Torch Tower, which will be the tallest building in Japan once completed, in the TOKYO TORCH district facing the Nihombashi Exit of Tokyo Station, which we are developing together with relevant right holders. The hotel is scheduled to open in 2028. Together with Dorchester Collection, which has carved its name in the history and culture of many parts of the world, we aim to create the worldview unique to TOKYO TORCH, and a true luxury area in Tokyo/Japan that can be experienced nowhere else.
• We underwrote capital increase of PowerX, Inc. ("PowerX") by way of third-party allotment of shares. PowerX develops and manufactures a power transfer vessel which is gaining attention to spread and expand offshore wind power generation, and manufactures and sells ultrafast EV chargers for EVs equipped with storage battery. Through this investment, we will contribute to building a decarbonized society by promoting the storage battery planned by PowerX, and obtaining financing opportunities in the power transfer vessel business.

[International Business]

• Three companies of ITOCHU Corporation, Hitachi Construction Machinery Co., Ltd., and Tokyo Century Corporation established ZAXIS Financial Services Americas, LLC, the finance joint venture to finance sales of construction machinery sold by the Hitachi Construction Machinery Group in North America. The three companies have already established and are operating joint finance companies in Thailand and Indonesia, and based on this experience they agreed to establish a joint finance company in North America. The North American construction machinery market is the largest in scale in the world, and stable demand is expected to continue in fields such as housebuilding and infrastructure. In the United States, which is positioned as a key area for the International Business segment, we are aiming to further expand its business there by making full use of the financing expertise it has developed through past joint ventures with Hitachi Construction Machinery and ITOCHU in Asia, as well as its extensive network of business bases and other advantages.
• BPI Century Tokyo Rental Corporation ("BPICTR"), a joint venture of the Company and Bank of the Philippine Islands ("BPI"), has entered into a business alliance with Diamond IGB Inc. ("Diamond"), a leading independent auto-leasing company in the Philippines, aiming to further strengthen its auto business in the country, under the condition of acquiring 100% shares of Diamond and its group companies (the "Diamond Group"), and commenced business collaboration. Meanwhile, Diamond, as a leading local company, provides auto leasing and rental services across the Philippines, as well as comprehensive vehicle services, including fleet management, and vehicle repair and maintenance, through its group companies. This alliance will add Diamond Group's high-quality auto services, such as short-term rentals, shuttle services, chauffeur-driven leasing, and fleet management services, cultivated as a dedicated auto business provider, to existing auto services provided by us, which has strength in the overseas auto business, and by BPICTR, a joint venture with BPI, which has a robust operating base as a major Philippine bank. This will enable BPICTR to meet the needs of its customers even better than before.

[Company overall]

• We concluded a capital and business alliance agreement with BOT Lease Co., Ltd., affiliated with Mitsubishi UFJ Financial Group, Inc., and underwrote capital increase by way of third-party allotment together with MUFG Bank, Ltd. and The Norinchukin Bank. We acquired a 25% stake and converted BOT Lease into an equity-method affiliate. Each company will cooperate by leveraging their management resources and accelerate responses to management issues of customers and social issues, aiming to enhance corporate value of each group.

2) Strengthening of management base

[Enhance and reinforce the financial foundation]

• Rating and Investment Information, Inc. (R&I) upgraded the Company's rating from "A" to "A+" and retained its outlook of the Company as Positive.
• Japan Credit Rating Agency, Ltd. (JCR) revised its outlook of the Company's "AA-" rating from Stable to Positive.
• We have comprehensively analyzed and evaluated the environmental, social and economic impact, and promoted procurement through positive impact finance, which is one type of sustainable financings aimed at constantly supporting activities that bring positive impact. The cumulative amount we have raised reached ¥200.1 billion, the largest scale in Japan. Achieving the KPIs set under the positive impact finance will
• • 5 -