Value Creation Model
Value Creation Process
Under the philosophy of the SMFL Way, our group leverages the management resources it has developed over the years to carry out a variety of business activities, including providing solutions to clients' management and social issues and participating in business activities. Through these series of activities, we will contribute to the sustainable development of society by striving to increase corporate value and create social value.
Management Resources (Six Capitals)
We created our businesses by utilizing human, financial and intellectual capital based on social and relationship capital and worked to acquire and hold manufactured capital and maintain natural capital. And that is how we achieved steady growth and enhanced corporate value. We will continue to strengthen these six types of capital through our business activities as we aim for further value creation and sustainable growth.
Social and Relationship Capital Connections with customers, business partners, communities and society, and shareholders
Our Vision calls for us to be “The best business partner” for our customers. Relationships of trust with our customers, relationships with manufacturers and dealers, cooperative relationships with specialized business companies responsible for development, construction, maintenance and operation in various business fields, and cooperation and coexistence with communities and society are the foundation of our business. We will develop together with each stakeholder by maintaining and enhancing social and relationship capital, including making use of the customer bases and networks of both of our shareholders, SMFG and Sumitomo Corporation
No. of customers (as of March 31, 2023) : Approximately 338,000 companies (including approximately 316,000 vendor finance (small-lot retail finance) customers)
No. of suppliers (as of March 31, 2023) : Approximately 26,000 companies
Human Capital Professional human resources, specialized human resources, digitally competent human resources, and the organizations and systems that support them
Our Vision also espouses that we “Encourage employee development,” and to this end we are working to cultivate human resources, create an organizational culture of taking on challenges, and enable human resources with diverse backgrounds to demonstrate their capabilities. We will create new business and new value through the organic activity of professional human resources who promote business with a sense of mission, specialized human resources who demonstrate expertise in various business fields, and digitally competent human resources who promote the advancement of business through the use of digital technology.
No. of employees (consolidated) (as of March 31, 2023) : 3,847
Financial Capital Solid fund-raising base and high credit rating
We have a solid fund-raising base stemming from our capital and borrowing relationships with our shareholders, ongoing business relationships with financial institutions, flexible access to the corporate bond and CP markets, and a high credit rating that supports these. We will further improve our financial capital by strengthening cooperation with our shareholders, working to maintain and enhance business relationships with financial institutions and fulfilling our accountability to investors and rating agencies, and diversifying our funding sources.
Consolidated net assets (as of March 31, 2023) : ¥1,175.2 billion
Long-term ratings : R&I AA, JCR AA, S&P A-
Intellectual Capital Knowledge and expertise in finance and equipment, specialized fields, investment and business, and digital
We provide high value-added services by acquiring and utilizing knowledge and technology in areas such as asset finance, securitization, risk management, and DX based on the knowledge and expertise on finance and equipment we have cultivated since starting the leasing business. In addition, we have acquired specialized knowledge related to business operations in focus areas such as renewable energy and real estate. We will continue to accumulate and utilize intellectual capital for further business growth and innovation.
- Finance methods, schemes, risk management
- Acquisition, possession, and disposal over the life cycles of equipment
- DX and digital solutions
- Provision of services such as solving customer management issues, streamlining operations, and developing human resources
Manufactured Capital Machinery and equipment acquired in business activities
We own manufacturing machinery and equipment, construction machinery, information and communication equipment, transportation equipment, real estate and buildings, and lease them to our customers. In addition, we acquire renewable energy power generation facilities and rental real estate properties with the aim of operating them as businesses. By acquiring and holding these types of manufactured capital, as well as properly maintaining and managing them, we have built a stable business foundation and profit base.
Consolidated operating assets (as of March 31, 2023) : ¥8,057.4 billion
Power generation capacity of solar power generation business (as of the end of May 2023) : 1,296MW
- ※Power generation capacity is calculated on a pro rata basis as a percentage of equity. (Including the track record of SMFL MIRAI Partners in our group)
Natural Capital Natural resources that form the foundation of our business activities
Natural capital such as air, water, land, minerals, forests, fauna and flora is used in the businesses of the customers we provide various services to. In addition, our renewable energy business uses natural energy sources such as sunlight, wind, and water, and our real estate business utilizes land. We strive to maintain and conserve natural capital by providing solutions that support customers’ decarbonization, creating renewable energy, acquiring eco-friendly assets, and promoting the 3Rs.
- Natural energy (solar, wind, hydro and geothermal power)
- Agriculture, forestry and fishery resources and tourism resources