Value Creation Process
Value Creation Process
It is our belief that expanding social value will lead to the enhancement of our management capital, which is the source of our corporate activities. By combining our traditional strengths in finance with our newly accumulated businesses and digital transformation (DX) while working to resolve social issues, we will create new business opportunities and generate new economic value, which will lead to further solutions to social issues.
Cultivated Management Resources
SMFL has steadily achieved growth by combining different types of capital, including our connections with customers, partner companies, and society; human and organizational capital; business-related knowledge and expertise; and our solid funding sources. Moving forward, we will continue to pursue sustainable growth and greater corporate value through synergies between these forms of capital while strengthening those types of capital that we lack.
Social and Relationship Capital Connections with customers, business partners, communities and society, and shareholders

Strengths and characteristics
- Strong relationships of trust with customers as well as close relationships with manufacturers and sales companies built up over more than 50 years in the leasing business
- Cooperative relationships with specialized businesses responsible for development, construction, maintenance, and operation in the real estate, environment, digital transformation (DX), 3R (reduce, reuse, recycle), and other business fields, and with leading businesses in the areas of software, cloud services, and recycling
- The extensive customer base and global networks of SMFG and Sumitomo Corporation, our two shareholders
Interaction between capitals
- Close relationships with SMFG and Sumitomo Corporation, our two shareholders, form solid financial capital
- Cooperation with partner companies and our two shareholders leads to the update and accumulation of new intellectual capital
Insufficient capital and enhancement measures
- Build relationships with external parties as a means of developing solutions that correspond to changes in the business environment, addressing social issues, and developing and operating new businesses
- Strengthen cooperation with partners and build new relationships toward the shift from finance to business
Human Capital Professional human resources, specialized human resources, digitally competent human resources, and the organizations and systems that support them

Strengths and characteristics
- Professional human resources who possess a sense of mission as the best business partner for our customers, and the relevant training system
- Specialized human resources that excel in the real estate, environment, aircraft, and other business areas, and an organizational structure for reliable operations
- Digitally competent human resources who promote greater operational efficiency and business sophistication through digital transformation (DX) application, and a training system at the Company-wide level
- An organization and corporate culture that allows diverse human resources from the trading company affiliated, bank affiliated, foreign affiliated and aircraft leasing companies, as well as real estate asset management businesses to play an active role
Interaction between capitals
- Organic activities among professional human resources, specialized human resources, and digitally competent human resources lead to the acquisition of new business opportunities and the value creation
- Stronger social and relationship capital links to the accumulation of intellectual capital
Insufficient capital and enhancement measures
- Strengthen human resources for promoting and realizing businesses involved in carbon neutrality and a circular economy
- Develop and acquire human resources involved in business investment and operations
- Having espoused the concept of “Encourage employee development,” focus on cultivating human resources, creating an organization and culture of taking on challenges, and enabling human resources with diverse backgrounds to demonstrate their capabilities
Financial Capital Solid fund-raising base and high credit rating

Strengths and characteristics
- Solid capital relationship with SMFG and Sumitomo Corporation, our two shareholders, and solid funding sources
- Ongoing, stable business relationships with leading financial institutions
- A system enabling flexible access to financial markets (corporate bond market, CP market, etc.)
- High credit rating
Interaction between capitals
- Having solid funding sources enables the acquisition and long-term possession of high-cost, expensive machinery, equipment, and other forms of manufactured capital acquired in business activities
- Solid funding sources enable the development of multiple solutions, such as products and schemes provided to customers, and the expansion of intellectual capital
Insufficient capital and enhancement measures
- Bolster financial capital by enhancing disclosure to investors, actively fulfilling accountability, and further expanding the investor class
- Further enhance financial capital by diversifying funding sources
Intellectual Capital Knowledge and expertise in finance and equipment, specialized fields, investment and business, and digital

Strengths and characteristics
- Knowledge and expertise on finance and equipment cultivated over the more than 50 years since starting the leasing business
- Accumulated knowledge and technology related to asset finance, securitization, risk management, and digital transformation (DX) stemming from the above knowledge and expertise
- Specialized knowledge accumulated across a wide range of areas, including equipment, construction, maintenance, and business operations in focus areas such as renewable energy, real estate, and 3R (reduce, reuse, recycle)
Interaction between capitals
- Exercising superior specialized knowledge and expertise leads to stronger relationships with customers and partner companies
- Acquisition and sharing of business expertise and new specialized knowledge leads to improved human resource development and a stronger organizational structure
- Use of intellectual capital leads to a build-up of machinery, equipment, and other forms of manufactured capital acquired in business activities
Insufficient capital and enhancement measures
- Expand knowledge and expertise to resolve social issues and realize carbon neutrality, as well as establish commercial applications for a circular economy
- Facilitate the accumulation and use of intellectual capital to promote further growth and innovation
Manufactured Capital Machinery and equipment acquired in business activities

Strengths and characteristics
- Ownership of manufacturing machinery, construction machinery, information and communication equipment, transportation equipment, real estate and other types of machinery and equipment, and buildings and facilities for addressing all manner of capital investment needs
- Possession of renewable energy power generation facilities that produce CO2-free power and environmentally-certified rental real estate properties for the purpose of enhancing social and economic value
- Ownership of multiple highly versatile and state-of-the art aircraft for addressing the global demand for aircraft
Interaction between capitals
- Acquisition and ownership of manufactured capital for which demand is high among customers and society, as well as proper operation/maintenance/ management realizes a stable business foundation, expands earnings, and bolsters financial capital
- Acquisition of the state-of-the art manufactured capital expands knowledge, expertise, and other forms of intellectual capital related to equipment
Insufficient capital and enhancement measures
- Offer more options of new, environmentally friendly machinery that contribute to decarbonization, such as power grid batteries
- Strengthen manufactured capital that contributes to resolving social issues, including machinery and equipment for the next-generation of mobility and aircraft that use Sustainable Aviation Fuel (SAF)
Natural Capital Natural resources that form the foundation of our business activities

Strengths and characteristics
- Increasing generation of CO2-free power from natural energy (solar, wind, hydro, and geothermal)
- Effective use of land for the purpose of actively addressing the needs of customers and society
Interaction between capitals
- Use of different types of renewable energy power generation facilities (manufactured capital) that rely on natural capital as a source of energy leads to the roll out of renewable energy businesses
- The above approaches lead to the expansion of social and relationship capital, human capital, financial capital, and intellectual capital
- A real estate business that relies on land and buildings (manufactured capital) leads to the expansion of social and relationship capital, human capital, financial capital, and intellectual capital
Insufficient capital and enhancement measures
- Bolster solutions that contribute to achieving carbon neutrality
- Engage in the full-scale roll out of businesses for realizing a circular economy