There are still many growth markets! Global Recruitment

Business Report

TC-Lease is aiming to become a “Comprehensive Financial Services Enterprise.”

The popular feature comes back Special feature

the46th For the First Six Months of Fiscal Year Ending March 31, 2015

To our shareholders

TC-Letter from Overseas The Diversity of TC-Lease

Cars are our forte,

the Century Tokyo Leasing Group

Cars are our forte,

the Century Tokyo Leasing Group

FUJISOFT Bldg.,3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022 Japan

Century Tokyo Leasing - automobile related group companies

Nippon Rent-A-Car Service, Inc.

Taiwan, China, Singapore, Thailand, Malaysia, Philippines, India, U.S.

OverseasOrico Auto Leasing Co., Ltd.

Securities Code: 8439

From April 1, 2014 to September 30, 2014

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1 2

President & CEO Shunichi Asada

Major topics

Please tell us about the financial results and busi-ness environment for the first six months of the fis-cal year ending March 31, 2015.

For the business environment during the six months ended September 30, 2014, Japanese economy was on a gradual re-covery trend, as corporate earnings and the employment envi-ronment continued to improve backed by the effects of the economic and financial policies of the government and the Bank of Japan, despite being surrounded by some concerns such as rising prices of raw material owing to a weakening of the yen and geopolitical risks in the Middle East.

Under these circumstances, the Group’s consolidated re-sults for the six months ended September 30, 2014 were strong, as transaction volume of new contracts increased 5.3% to 632.5 billion yen from the same period of the previous consolidated fiscal year, and a balance of operating assets in-cluding business guarantees increased 1.3% to 2,679.9 billion yen from the end of the previous consolidated fiscal year. In terms of profits and losses, total revenues increased 21.9% to

438.5 billion yen from the same period of the previous consoli-dated fiscal year, operating income increased 22.8% to 28.9 billion yen from the same period of the previous consolidated fiscal year, and ordinary income increased 12.6% to 29.9 billion yen from the same period of the previous consolidated fiscal year. Although net income decreased 5.8% to 16.6 billion yen from the same period of the previous consolidated fiscal year, progress towards the forecast of consolidated results for the fiscal year ending March 31, 2015 was favorable at each profit level.

Please tell us about the major initiatives for the first six months of the fiscal year ending March 31, 2015.

Various measures were implemented under the second medi-um-term management plan centered on the basic policy “to become a comprehensive financial services enterprise and re-alize further innovative changes as well as sustainable growth.”

Kyocera TCL Solar LLC, which was established jointly with KYOCERA CORPORATION in order to engage in the solar power generation business, commenced its initiatives toward the floating mega solar power plant business together with Ciel et Terre International (France), which holds a patent for floating solar platforms.

In addition, in the East Asia and ASEAN region, we re-solved to make equity investments in a leasing company to be newly established by a Chinese government-affiliated compa-ny, Suzhou New District Hi-Tech Industrial Co., Ltd., and to make the said company an equity-method affiliate. Further-more, we acquired 49% of the number of shares issued by BPI Leasing Corporation, a wholly-owned subsidiary of the Bank of the Philippine Islands (hereinafter “BPI”) which is a major bank in the Philippines, and agreed to conduct joint busi-ness with BPI. The Group will integrate BPI’s network in the

Philippines and our product competitiveness in facility leasing, etc., to expand our business base in the Philippine market, which continues to enjoy high levels of growth with a GDP growth rate of 7.2%.

Furthermore, in October, we resolved to establish joint ven-ture companies to engage together in the aircraft leasing busi-ness with the CIT Group Inc. (U.S.), which has the sixth highest number of aircrafts for lease in the world. As plans for these joint venture companies include investments of approxi-mately 200 billion yen over the next two years, the Group’s aircraft-related business can be expected to increase dramati-cally in the balance of operating assets.

Please tell us about the forecast of consolidated results for the fiscal year ending March 31, 2015.

Looking at consolidated results forecast for the fiscal year end-ing March 31, 2015, steady progress has been made towards achieving the plan, in which total revenues are projected to in-crease 3.8% year on year to 860.0 billion yen, operating in-come is forecasted to grow 9.5% year on year to 56.3 billion yen, ordinary income to be up 3.3% year on year to 57.0 billion yen, and net income to rise 0.8% to 33.3 billion yen year on year. As a result, the Group has revised the dividend plan to in-crease the interim dividend by 4 yen to 32 yen per share and the full year-end dividend forecast by 4 yen to 32 yen per share, resulting in an increase in annual dividends by 12 yen per share year on year to 64 yen per share.

In order to achieve further profit expansion and sustained growth, we will work to achieve balanced improvement in the three indices of ROE (return of net income to equity), ROA (re-turn of ordinary income to total assets), and EPS (earnings per share) and will meet the expectations of our shareholders and all our stakeholders.

Released on May 26, 2014

Consolidated the Thailand subsidiary, TISCO Tokyo Leasing Co., Ltd.

Kyocera TCL Solar LLC announced construction of the world’s largest* floating solar power plant* Comparison among solar power generating systems installed on water (as of August 29, 2014)

See the following pages for a description of other major topics!Released on August 29, 2014

To our shareholders

is aiming to become a

“Comprehensive Financial Services Enterprise.”

Major affiliates

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

Address FUJISOFT Bldg., 3 Kanda-neribeicho, Chiyoda-ku, Tokyo 101-0022 Japan

Company Chairman & Co-CEO Toshihito TambaRepresentative President & CEO Shunichi Asada

Founded July 1, 1969

Capital amount 34.2 billion yen

Number of 4,068 (Consolidated)employees 1,030 (Non-consolidated)

Corporate Profile

DomesticNippon Car Solutions Co., Ltd.Orico Auto Leasing Co., Ltd.Nippon Rent-A-Car Service, Inc.Fujitsu Leasing Co., Ltd.IHI Finance Support CorporationS.D.L Co., Ltd.TCI Finance CorporationITEC Leasing Co., Ltd.TC Property Solutions CorporationTRY, Inc.TC Agency Corporation

OverseasCentury Tokyo Leasing China CorporationCentury Tokyo Leasing Factoring China CorporationCentury Tokyo Leasing (Singapore) Pte. Ltd.Century Tokyo Capital (Malaysia) Sdn. Bhd.PT. Century Tokyo Leasing IndonesiaPT. TCT IndonesiaTISCO Tokyo Leasing Co., Ltd.Century Tokyo Leasing (USA) Inc.TC Aviation Capital Ireland LimitedPresident Tokyo CorporationTong-Sheng Finance Leasing Co., Ltd.GA Telesis, LLC

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Japan

Philippines

2010

(Millions of people)

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Philippine Statistics Authority

93.14

128.06 124.10

109.95

2020(Estimates)

Population trends

TC-Letter from Overseas

3 4

Why Ireland?Ireland, the birthplace of aircraft leasing, is driving the world as a leading country in the aircraft business due to the avail-ability of taxation systems, etc. that facilitate the develop-ment of aircraft businesses by foreign companies as well as the relative ease of securing human resources with special-ized knowledge.

In addition, the time difference between Ireland and Asia/North America is also suitable for business. Ireland is truly a perfect base for the aircraft business.

Aircraft leasing-related affiliated companies of the TC-Lease Group

Corporate profile of the new company

Name BPI Century Tokyo Lease & Finance Corporation

Location of headquarters Manila, Philippines

Principal business General leasing and financing

Capital 80,899 thousand pesos (approximately 200 million yen)

Shareholders TC-Lease:49%, BPI:51%

The Republic of the Philippines (herein-after the “Philippines”) has a popula-tion of over 100 million and an average age of 23 years old. Its GDP growth rate during 2013 was 7.2% year on year as it continued to enjoy high levels of growth second only to China. We have acquired 49% of the number of shares issued by BPI Leasing Corpora-tion, a wholly-owned subsidiary of the Bank of the Philippine Islands (herein-after “BPI”), which is the oldest major

bank in Southeast Asia and has over 800 branches in the Philippines. It has been agreed to make the said compa-ny a joint venture of TC-Lease and BPI.

The new company will integrate BPI’s network, customer base, and management infrastructure in the Phil-ippines with our customer base, prod-uct competitiveness, and know-how in specialized fields through a strategic partnership to expand our business base in the Philippines.

Basic data

Republic of the Philippines

Total area 299,404 km2

Population Approximately 93.14 million (2010)

Nominal GDP Approximately USD 289 billion (2014)

Average age 23 years old

Source: Ministry of Foreign Affairs of Japan, Philippine Statistics Authority, IMF, Na-tional Statistical Coordination Board

The power of youth and energy !Entering the Philippine market!

Aircraft Leasing

Philippines

TC-LeaseIreland

TC-Lease’s aircraft businessStarting off with aircraft leasing business for Jetstar Japan Co., Ltd., in which we carried out capital participation in 2012, we have since invested in GA Telesis, LLC, a leading distributor of aircraft components in the U.S., and devel-oped the periphery businesses of engines and parts.

We are steadily expanding this business, as can be seen in the establishment of a wholly-owned subsidiary, TC Avia-tion Capital Ireland Limited, in Ireland in 2013 and the deci-sion to open two new business bases through a joint venture with the CIT Group Inc. in 2014.

Irish coffee originated from Shannon Airport in County Clare in the west of Ireland. Back in 1943, passengers were shivering with cold due to short duration of flights in those days forcing frequent stops for refuel, and air-crafts not being fully airtight.

Flying CoffeeJoe (Joseph) Sheridan, the owner of an Irish pub locat-

ed in Shannon Airport, created a hot drink to warm up passengers waiting for their flights. This hot drink be-came the well-known “Irish coffee”.

Coffee breakBPI Century Tokyo Lease & Finance Corporation

Check!

Name TC Aviation Capital Ireland Limited TC-CIT Aviation Ireland Limited TC-CIT Aviation U.S., Inc.

Place of business Dublin, Ireland Dublin, Ireland New York, U.S.

Shareholders TC-Lease 100% TC-Lease 70%CIT Group Inc. 30%

TC-Lease 70%CIT Group Inc. 30%

Date of establishment October 2013 October 2014 October 2014 NEW NEW

TC-CIT Aviation Ireland LimitedCheck!

TC-Lease resolved to establish aircraft leasing joint venture companies in the U.S. and Ireland through a joint investment with the CIT Group Inc., a leading provider of commercial lending and leasing services in the U.S.

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Global Recruitment

Special feature:

The Diversity of TC-Lease

5 6

The “Japan Revitalization Strategy” has been released as the “three arrows” of the growth strategy under the Abe administration’s second Cabinet. The “diversity of human resources,” including the promotion of women and the active employment of non-Japanese personnel with high capabilities, has been promoted as part of the course for the steady implementa-tion of this strategy. We took this opportunity to talk with Foo Siang Seng, Managing Director of TC-Lease’s Singapore local subsidiary, who was the first international employee of TC-Lease, and with young employees who are following the path of senior employees.

Why did you want to, and why did you join a Japanese leasing company?It took the same level of courage to decide to enter TC-Lease as it did when I decided to choose a different path to study in Japan when most of my high school classmates went to study abroad in Taiwan and the U.S. over 30 years ago. I spent four years studying at a Japanese uni-versity, and during this period I was very stimulated by a wide variety of fresh and vast amount of knowledge and information. Although people around me recommended that I enter a compa-ny such as a trading company in order to take advantage of my language skills before I graduat-ed from university, I decided to enter TC-Lease because leasing business at that time was a truly innovative financing method for companies and I believed that utilizing leasing as a financ-ing method could greatly enhance emerging countries, such as my home country Malaysia, to join developed countries more rapidly.

Could you share with us any aspect of your work that especially left an impres-sion on you or that you felt really rewarding?Over the past few years, the operating assets and earnings of the Singapore base have become the highest among the TC-Lease Group’s overseas local subsidiaries. It is also top-class among competing Japanese companies in Singapore, and this is a splendid culmination that would not have been possible to achieve without the daily hard work and cooperation of the National Staffs. Looking back, about 20 years ago, there were times when the existence itself of the cur-rent Singapore base was questioned. However, despite this challenge, we have been able to build up the current sound and highly profitable structure thanks to the thorough business transformation that was implemented by the entire National Staff thereafter. The reason we succeeded in this conversion was always being able to provide a variety of solutions in re-sponse to changes in customers and markets day by day, which is most important.

What is your opinion about the need for global employment and the application of human resources at the TC-Lease Group?As I mentioned earlier, in order to make the operation of over-seas local subsidiaries successful, it is extremely important not only to provide daily services to Japanese companies, but also to go one step further and maintain a close business relation-ship with local companies. I believe that we can further exploit our potential through the success of international employees who serve as a bridge between local companies. I am really looking forward to the successful future of international employ-ees at the TC-Lease Group.

In recent years, many Japanese companies are entering markets in China and other Asian countries. In order to achieve further sustained growth in our business under a rapidly and ev-er-changing business environment, we require personnel who can come up with flexible ideas from global perspectives that are not affected by typical ways of thinking. For this reason, we are hiring international students. There may be some aspects of the work that can be confusing for them, such as gaining an un-derstanding of the unique culture and business practices of Jap-anese companies and establishing positive human relationships with customers and colleagues. Therefore, we have adopted a system in which a senior employee will supervise these employ-ees one-on-one for one year after they join the Company. In ad-dition, all senior employees in the divisions these employees are assigned to are aware that they also serve as supervisors, and we foster a corporate culture in which we try to develop human resources as an entire company. We hope that these internation-al students, as members of the Company, will become the origi-nators themselves to generate new values and play a role in leading the organization both in Japan and overseas in the future.

We will take up “Promot-ing the female workforce” as part 2 of the special fea-ture on the Diversity of TC-Lease in the 46th Business Report.

What is your impression of TC-Lease?Although I joined a U.S. competitor immedi-ately after I graduated from university, I soon noticed that I was not able to utilize my strengths in languages, etc., and spent most of my days on domestic sales. Looking for a more international sphere of activity, I took the opportunity to transfer to the Company two years ago. Looking back, my preconcep-tions towards Japanese companies changed drastically when I felt that the Company val-ued personality during the hiring process, and I still have pleasant surprises day by day in this respect. During these times especially when Japanese companies are performing actively on a global level, I am convinced that it is the strength of the Company that it of-fers opportunities to employees who are motivated to grow further into the future, re-gardless of nationality or gender.

What is rewarding about the work you are currently involved in?I am currently working for overseas local sub-sidiaries of the Company where I am involved in composition and promotion of financing transactions called “global vendor transac-tions” to be provided for end-users in coop-eration with vendors of Europe and North America (global vendors). I feel that every day is rewarding because my work constantly re-quires high expertise and creativity to support the diverse needs of customers around the world, and it provides me the opportunity to be successful on a global scale, and further-more, I get to experience the high growth potential of TC-Lease deriving from the high level of flexibility and opportunities provided by the leasing business.

A talk with young international employees!

Career summaryAfter graduating from a Japa-nese university, he entered the former Tokyo Leasing Co., Ltd. in 1987. Af ter serving at the Treasury Division and our Hong Kong local subsidiary, he was appointed as Managing Director of our Singapore local subsidi-ary in 2000.

WeiJie FanGlobal Business Division IIJoined the Company in 2012

Jidong QiuGlobal Business Division IIJoined the Company in 2011

Century Tokyo Leasing (Singapore) Pte. Ltd.

Foo Siang Seng, Managing Director

How do you feel day by day about learning your work through OJT, and what are your goals for the future?I belong to the Corporate Department and I am currently learning the leasing business for corporate customers through OJT under a senior employee. In many cases the custom-ers in my current division will not be satisfied with common kinds of leasing, so we have to come up with a proposal which is most ben-eficial for our customers. It is interesting to plan proposals for customers that are global companies, and I feel a great sense of ac-complishment when we are able to over-come the challenges. Although every day is a learning experience because I am still in my first year, I hope that someday I will able to work on the forefront and make proposals that only I and the Company are capable of offering.

Yinung ChenBusiness Division IIJoined the Company in 2014

Singapore local subsidiary

Interview with Mr. Foo, Managing

Director

Message from the Personnel Department,

Recruiting and Training Group On the next

Business Report

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Net income

0

1,000

500

2,000

1,500

2,500

3,000

1,473.9

201.6

601.1 213.7

1,783.9

649.2

224.3

1,785.8

669.82,276.6

2,646.8 2,679.9

2013.3 2014.3 2014.90

1,000

500

2,000

1,500

272.646.3

225.5

300.555.6

244.8

290.155.1

287.3

544.3 600.9 632.5

1,178.8

(First Half) (Full-year) (First Half) (Full-year) (First half)2013.3 2014.3 2015.3

1,409.4

44.2 46.3 46.3

26.5 29.9

55.2

2011.3 2012.3 2013.3 2014.3 2015.3

(57.0)

0

20

40

60

10

30

50

0

20

10

30

40

23.626.2

17.6 16.6

(33.3)33.1

2011.3 2012.3 2013.3 2014.3 2015.3

28.9

Balance of operating assets

Ordinary income

Forecast of consolidated results for fiscal year ending March 31, 2015

New Transactions Volume(Billions of yen)

(Billions of yen) (Billions of yen)

(Billions of yen)

7 8

Fiscal Year 2013 2QFrom April 1, 2013 toSeptember 30, 2013

Fiscal Year 2014 2QFrom April 1, 2014 toSeptember 30, 2014

Total revenues 359,735 438,543

Leasing 313,812 379,775

Installment sales 33,390 38,240

Financing 7,863 10,958

Others 4,668 9,568

Total costs 318,888 376,667

Gross profit 40,847 61,876

SG&A expenses 17,286 32,940

Operating income 23,560 28,935

Non-operating profits and losses 2,958 930

Ordinary income 26,518 29,865

Extraordinary profits and losses 417 153

Net income 17,582 16,555

Total assets2,918,336

Cash and cash equivalents93,324

Interest-bearing debts2,278,915Operating assets

2,633,218

(Operating assets including business guarantees: 2,679,897)

Other liabilities333,020

Other assets191,794

Net assets306,410

Consolidated Statements of Income (Summary)

Assets and Liabilities(As of September 30, 2014)

2,679.9 billion yen

29.9 billion yen 16.6 billion yen

632.5 billion yen

33.1 billion yen(from the end of the previous fiscal year)

3.3 billion yen up

1.0 billion yen down

31.6billion yen

Consolidated Financial Information

After giving overall consideration on factors including our basic policy on distribution of profits and the future business environ-ment, we have decided to increase the interim dividend from surplus by 4 yen per share to 32 yen from the previously an-nounced forecast, in order to respond to the continuing support of our shareholders. The full year-end dividend forecast will also be increased by 4 yen per share to 32 yen and the annual divi-dends are revised from 56 yen per share to 64 yen, an increase of 8 yen. This will result in a dividend increase of 12 yen per share year on year on a full-year basis.

Implementation of a dividend increase of 12 yen per share

See page 10 for details on dividend trends

Note: Graph figures of Financing include business guarantees and other business.

D i v i d e n d g r o w t h

(Millions of yen)

(Amounts less than one million yen have been omitted.)

(Millions of yen)

Leasing Installment Sales Financing Leasing Installment Sales Financing

Full-year First half Full-year First half

Total revenues 860.0 billion yen (YoY 3.8% up)

Operating income 56.3 billion yen (YoY 9.5% up)

Ordinary income 57.0 billion yen (YoY 3.3% up)

Net income 33.3 billion yen (YoY 0.8% up)

Net income per share 314.74 yen (YoY 3.1 yen up)

Annual dividends 64 yen (YoY 12 yen up)

Dividend payout ratio 20.3 % (YoY 3.6 point up)

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9 10

*A "holding period of two or more years" refers to shareholders who have been on the shareholder register of the Company at the end of March and September each year for five or more consecutive times, with the same shareholder identification numbers.

Shareholders holding accounts with securities companies, etc.

Shareholders not holding accounts with securities companies, etc.(Shareholders holding special accounts)

Mailing address

Securities companies, etc., managing your accounts

2-8-4 Izumi, Suginami-ku, Tokyo 168-8507 JapanMizuho Trust & Banking Co., Ltd.Stock Transfer Agency Department

For inquiries

Telephone: 0120–288–324 (toll free only in Japan)(available every day from 9:00 to 17:00 local time, excluding Saturdays, Sundays and national holidays)Website address: http://www.mizuho-tb.co.jp/daikou/

Agencies for notices andother inquiries(change in address,change in methods of receiving dividends, etc.)

The head office, nationwide branches or Planet Booths(booths placed within Mizuho Bank, Ltd.) of Mizuho Securities Co., Ltd.The head office or nationwide branches of Mizuho Trust & Banking Co., Ltd.(Services are not available at Trust Lounges.)

Receiving unpaid dividends

The head office or nationwide branches of Mizuho Trust & Banking Co., Ltd. / The head office or nationwide branches of Mizuho Bank, Ltd. (Only agency service is available at Mizuho Securities Co., Ltd.)

Notes

To request a payment statement, please con-tact the mailing address, telephone number or agencies for notices and other inquiries stated in the right column,"Shareholders holding spe-cial accounts."

Shares registered with our special accounts cannot be traded, except for the purpose of sale or additional purchasing of less-than-one-unit shares. An account must be opened at a securities company, etc. to conduct a transfer of shares.

Shareholder information

Our policy on dividends

Guidance on the share-holder special benefit plan

As a general rule, Century Tokyo Leasing Corporation distributes divi-

dends to its shareholders twice a year (interim and full year-end divi-

dends). As for our dividend policy, we view the long-term and stable

return of profits to shareholders as its basis, and also intend to im-

prove the dividend payout ratio upon realizing sustainable income

growth. Century Tokyo Leasing Corporation will strive to enhance its

corporate value while endeavoring to strengthen its capital, and work

for further returns of profits to its shareholders.

To express our gratitude toward shareholders for their support, we are offer-ing original "QUO Cards" to shareholders under the shareholder special benefit plan (time of offering: the cards are delivered after the Annual General Meeting of Shareholders held in June each year). In addition, the content of shareholder special benefit plan is set to be more appealing to those who intend to hold the shares over the medium- to long-term period.

0

20

10

40

30

60

50

70

4044

4852

64

2011/3 2012/3 2013/3 2014/3 2015/3(forecast)

0

2,000

6,000

4,000

8,000

10,000

6,000

4,000

2,000

8,000

6,000

2,000

0 year 2 years* Holding period

(yen)

(yen)

Having revised the dividend plan of the beginning of the period,

raising 12 yen per share on full-year basis

Attractive benefitcontents directly

relating to numberof shares held and

period of years

Sh

areho

lder sp

ecial ben

efit plan

Divid

end

s

Together with our shareholders

The report on Suzhou, China in the previous Business Report was

very informative.I hope that you increase articles like these in the future.

Male, 30s

I look forward to reading more of the approachable

IR information in the future.

Male, 40s

After reading the previous Business Report, it was very interesting to learn that your company was also involved with

“euglena” and

“aircraft engines.”Female, 50s

I am looking forward to your

CSR activities.Female, 60s

I want to see more

IR information on your

website.Male, 40s

In this Business Report, we introduce our businesses in the Philippines and Ireland. Please see page 3 and 4 for details.

Although it may come as a bit of a surprise, we are linked to many things in your surroundings.We hope to become even more involved in many things in the future.

In the special feature this time, we have taken up interviews with international employees that are successful at our company, to bring you more approachable information.Please see page 5 and 6 for details.

You can find the details of our CSR activities in

the “CSR Report” available on our website. IR

information is frequently updated as well. Please

visit our website at:

http://www.ctl.co.jp/

Voice of shareholders

The longer you hold the Company's shares, the more

benefits you receive!

10 0 o r more but less than 1,000 shares1,000 or more but less than 3,000 shares3,000 or more shares

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