Corporate Information
Medium-term management plan
We have created a medium-term management plan that puts sustainability at the core of our strategy, starting from FY 2022. The plan captures significant changes in people's values and lifestyles resulting from the transition to a decarbonized and digitalized society, and strives to achieve a long-term balance between social and corporate value.
Creating our medium-term management plan
In the three-year medium-term management plan that ended in March 2022, we have pursued our fundamental policy of "Innovation for Next Orico" and worked towards rebuilding a solid profit structure and creating new business models based on six fundamental strategies.
Although we faced a tough business environment with the COVID-19 pandemic, by thoroughly implementing business based on our fundamental strategies and advancing various initiatives, we have completed the redemption of Class I preferred shares, which had long been a challenge.
On the other hand, people's values and lifestyles continue to change due to factors such as the shift to a decarbonized society caused by global climate change, and the spread of the Internet and digitalization. As these trends are expected to accelerate in the future, companies must innovate their businesses with flexible ideas that are not bound by the past.
In response to these changes in the business environment and to achieve growing both social and corporate value in the future, we have placed "sustainability" at the core of our management and formulated a medium-term management plan starting FY 2022, based on backcasting from Orico's vision of the next 10 years and our material issues.
Management objectives
Medium-term management plan slogan and management objectives
Transformation Now！
～Become a financial services group for a new era that creates value from the customer's perspective～
We have set our vision for society in 2030 as "a sustainable society in which everyone can realize a fulfilling life", and our goal as "an innovative, leading company that contributes to solving various social issues through offering customer-centric financial services". To achieve this goal, we are leveraging DX (to become an innovative and leading tech company) and promoting both CX (providing new customer experiences) and EX (offering new ways of working).
The medium-term management plan will be effective for the next 3 years, and under the slogan of "Transformation Now! - Becoming "a financial services group for a new era that creates value from the customer's perspective", we will depart from the conventional credit sales model and apply the ideas of "Green," "Digital," and "Open Innovation" to create value for our customers, and contribute to society while enhancing our corporate value.
Through these efforts, we aim to achieve our management targets of ordinary income of 40 billion yen or above, ROE of 10 percent or above, and a ratio of general expenses to operating revenues of less than 60 percent.
Our Society and Vision in 10 years (2030)
| Vision for our Society | A sustainable society where everyone can realize a fulfilling life |
|---|---|
| Vision of the Company | An innovative and leading company that provides financial services by always being attentive and responsive to our customers, while contributing to solving various social issues A company that is more than ever recognised by its stakeholders for its significance in society |
- DX (Digital Transformation) Become an Innovative and Leading Tech Company
- CX (Customer Experience) Provide New Customer Experiences
- EX (Employee Experience) Offer New Ways of Working
Overview of the Medium-term Management Plan (April, 2022 - March, 2025)
We aim to operate our business by placing "sustainability" at the core of our management and strive to achieve a balance between creating social value and enhancing corporate value through our business.
| Our slogan | Transformation Now！ ～Become a financial services group for a new era that creates value from the customer's perspective～ |
|---|---|
| Milestones in 3 Years | To depart from the conventional credit sales model and to apply the ideas of "Green," "Digital," and "Open Innovation" to create value for our customers, and contribute to society while enhancing our corporate value. |
| Business strategy | Business portfolio management based on risk return and cost return
|
| Management foundation | Governance New Human Resources Strategy |
| Financial discipline and capital policy | Balancing soundness and profitability New capital policy after redemption of class I preferred shares |
| Management Targets (FY March 2025) |
Ordinary income of 40 billion yen or above ROE of 10 percent or above Ratio of general expenses to operating revenues of less than 60 percent |
Business portfolio management
Maximize corporate value through appropriate allocation of managerial resources
For the medium-term management plan, we analyzed the current status of each business based on the two axes of "market growth potential x competitive advantage" and "risk-return x cost-return" to clarify the future direction of the company.
By doing so, we aim to maximize corporate value by appropriately allocating managerial resources to businesses that align with our vision, generating additional capacity, and redirecting it towards growth investments in new businesses.
Business strategy
Four business strategies to become a financial services group for a new era
In our medium-term management plan, we have set the following business strategies：①Focus on key markets & explore new businesses,②Establish a market-in sales approach, ③reate new products and services through collaboration with different industries and cutting-edge companies, and④Explore process innovation. Through these four business strategies,
we aim to become "a financial services group for a new era that creates value from the customer's perspective".
Settlement and guarantee
We will strengthen the settlement and guarantee business, which shows growth potential. We will aggressively invest our managerial resources in the two pillars of our non-fund based business: rent guarantees and accounts receivables settlement guarantees.
In the rent guarantee business, we strive to become the No.1 share in the industry by introducing services that capture the trend of DX in the industry, developing business by utilizing our sales network, and strengthening relationships with management companies.
In the accounts receivable settlement guarantees business, we will respond to the increasing demand for guarantees caused by the COVID-19 pandemic and the growing need for alternative credit enhancements previously provided by wholesalers and distributors. We will establish a new Business-to-Business Solutions Department and aim to become the No.1 in the small-amount accounts receivable guarantee field.
Furthermore, we will strengthen product development related to settlement guarantees through collaboration with the Mizuho Group.
Overseas Business
Overseas business is another market with high growth potential, and we have expanded into Thailand in 2015, Indonesia in 2019, and the Philippines in 2021.
In these countries, we have utilized the auto loan knowledge and skills we cultivated in Japan to contribute to the development of the automobile market in each country.
In addition, we intend to expand into new business areas, such as establishing a sales scheme for certified used vehicles, incorporating electric vehicles (EVs), introducing the supplementary products such as insurance and road services, and developing multipurpose loans and product loans secured by collateral other than vehicles.
| Country | year of entry | future business development |
|---|---|---|
| Thailand Orico Auto Leasing (Thailand) Ltd. |
2015 |
|
| Philippines Orico Auto Finance Philippines Inc. |
2019 |
|
| Indonesia PT Orico Balimor Finance |
2021 |
|
New businesses
The Digital Marketing Group was established to create new revenue opportunities through digital technology and open innovation. We will implement DX in existing business models, develop DX talents, foster a DX culture, and create more new business models.
New businesses will be developed based on both "organic (utilizing existing resources)" and "inorganic (utilizing corporate alliances and acquisitions)".
In the organic domain, we will identify opportunities in the business-to-business sector and the transition to a decarbonized society, strengthening our development of services that align with decarbonization initiatives.
In the inorganic domain, through investments and collaboration with venture companies, we will strengthen our capacities to acquire cutting-edge technologies, new products, services, and customers.
| Business field | future business expansion |
|---|---|
| Organic | Business-to-Business Field
|
| Inorganic |
|
Establishing a market-in sales approach
We define our market-in sales approach as "considering customers' needs and providing timely and optimal solutions, products, and services without being constrained by existing domains." We divide our customer-driven market-in sales approach into the 3 domains of "With B to C," "to B," and "to C," and provide high-value-added products, services, and solutions that go beyond existing boundaries.
| With B to C Provide value to customers by collaborating with affiliated stores Customer acquisition and development support through data mining service |
|
|---|---|
| to B Providing value to affiliated stores and corporate customers |
|
| to C Provide value to customers through direct approach |
|
Create new products and services through collaboration with different industries and cutting-edge companies
Through "eOrico", a web-based service for our members, we will provide a variety of services on the application using digital technology.
For example, we will create new customer experience value by introducing a digital card system for credit cards that enables instant card issuance and a negotiation system that completes the auto loan application process online.
Furthermore, we will generate synergies among members, member merchants, and external companies to build a strong relationship with customers in one-stop. We are considering providing external financial functions such as insurance, securities, and asset management, as well as exploring cross-cooperation with other companies' services.
Exploring process innovation
We will provide new customer experiences through advancing our digital communication. Additionally, we will further digitalize our business, services, and operations to improve quality and productivity, aiming to create a creative and rewarding work environment. Through such, we will promote process innovation through a three-pronged approach of "improving customer convenience", "reducing business costs", and "minimizing environmental costs".
| Provide new customer experiences Promote digital communication |
Enhance web services for customers and member merchants to improve convenience and productivity |
|---|---|
| Creating a new work experience Automate and digitalize tasks |
Utilize digital technology to automate tasks, allowing employees to focus on creative and fulfilling work |
| Reduce business costs and environmental costs Further paperless initiatives and digitization of cards |
Reduce printing, mailing costs and the CO2 emissions from production/disposal of paper and plastic |
Management foundation
Strengthening the management foundation to support growth
Our human resources (HR) strategy involves creating a diverse group of talent, building an HR foundation for the future, developing independent careers, introducing a 360-degree evaluation system, and fostering DX human resources.
To strengthen governance, we will shift to a company with an audit and supervisory committee, establish a governance structure that is compatible with the prime market, reinforce autonomous control at both domestic and international group companies, and develop a risk management system.
Strengthening the management foundation to support growth
| Human resources strategy |
|
|---|---|
| Strengthening governance |
|
DX Strategy supporting the medium-term management plan
3 DX strategies to become an innovative tech company
Our medium-term management plan involves three strategies for DX: "creating new business models using digital technology", "implementing DX in existing business models", and "developing DX talent and fostering a DX culture".
Through DX initiatives aimed towards becoming an innovative and advanced company, we will embody "CX (providing new customer experiences)" and "EX (evolving new work experiences)" and grow into a company that contributes to solving environmental and social issues through business.
DX Strategy
Capital structure policy
Achieve optimal balance between financial soundness, shareholder returns, and capital efficiency
Following the completion of the redemption of Class I preferred shares, we formulated a new policy for capital structure in the medium-term management plan, aiming to achieve an optimal balance between financial soundness, shareholder returns, and capital efficiency.
For shareholder returns, we are targeting a consolidated dividend payout ratio of 30%, based on stable and continuous dividend payments.
Corporate Information
-
Corporate information top page
- Corporate information top page
- Corporate information on Orient Corporation
-
President’s Message
- President’s Message
- President and Representative Director explains Orient Corporation’s management policy.
-
Corporate Philosophy
- Corporate Philosophy
- Orient Corporation’s Vision, Policy and Code of Conduct
-
Management Policies
- Management Policies
- This page provides an overview of our basic management policies
-
Corporate Governance/Risk Management/Compliance
- Corporate Governance/Risk Management/Compliance
- Introducing Orient Corporation's corporate governance/risk management/compliance.
-
Corporate Overview
- Corporate Overview
- Basic information regarding Orient Corporation, including its organization of head office, access information, management and history
-
Orico in Figures
- Orico in Figures
- Quantitative information on businesses of Orient Corporation
-
Growth Strategy
- Growth Strategy
- Orient Corporation's strategies and initiatives to contribute to society and enhance corporate value.
-
Business Overview
- Business Overview
- Orient Corporation’s operations including its auto loans, shopping credit, and credit cards business segments
