OPERATING LEASE BUSINESS

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JAPANESE

The subsidiaries JP Lease Products & Services Co., Ltd. and JLPS Ireland Limited, which have abundant experience and achievements, are collaborating in the operating lease business, focusing on aircraft as well as ships and shipping containers.
We provide a variety of one-stop services, such as "lease orders", "asset management", "creation of a portfolio of investment products, Japanese Operating Leases (JOL, JOLCO)", "sales to investors"and "disposal management such as aircraft sales".
* For inquiries regarding the operating lease business, please contact "Group Company" at the last of this page.

OUR SERVICE

Japanese operating lease products (JOLCO * 1, JOL * 2) for Japanese SME's

* Our Subsidiary, JP Lease Products & Services Co., Ltd., is in charge of our Operating Lease Business.

We sell investment products to Japanese corporations. Our products are generally known as "Japanese operating leases" which combines a form of silent partnership stipulated by the Japanese Commercial Code with operating lease.

[Overview of Japanese Operating Leases]

Investors will invest in the operating lease business of investment products such as aircraft and take on the business profits and losses during the lease period. This enables the efficient use of funds. There is also the possibility of capital gains by selling the leased property at the end of the lease period.

*1
JOLCO (Japanese Operating Lease with call option)
JOLCO is an operating lease which gives the lessee an option to purchase the asset at the end of the lease, or at some point during the lease period, at the purchase price determined at the commencement of the lease.
*2
JOL (Japanese Operating Lease)
JOL is an operating lease funded by the equity investment from Japanese investor(s) and non-recourse debt from financial institution(s). This structure is used mainly in the aviation industry to provide airlines with 100% financing of aircraft. The lease rates are competitive and attractive for airlines. The equity investor(s) will enjoy tax benefits from the JOL structure and exposed to the residual value risk at the end of the lease. Therefore, the JOL should be structured by the experts of aircraft leasing in order to minimize the residual value risk.

[Main structure diagram of Japanese Operating Leases]

Main structure diagram of Japanese Operating Leases

Arrangement of the operating lease business in single aircraft

We support the operating lease business by excellent SME's and asset management companies in single aircraft.

ADVANTAGE

Lease orders and asset management

1

As one of the leading companies specializing in operating leases in Japan, we collect information from an extensive and close network to form operating leases for the world's leading airlines and shipping companies.

2

Members from various backgrounds, such as the airline industry, banks, securities companies, and leasing companies, demonstrate their high level of expertise to produce deals from the investor's perspective.

3

Through the collaboration with Japanese and Irish corporations, we promptly respond to aircraft leasing needs on a global scale.

4

We rely on the group's part out*1 and conversion*2 business to handle the disposal of the aircraft upon the expiration of their leasing period.

*1
Part Out Business
A business that dismantles the retired aircraft, manages the inventory of all parts, and sells them to users around the world (maintenance companies, leasing companies, airlines, etc.)
*2
Conversion Business
A business to convert old passenger planes into freighters

Sales of Financial Products

1

We sell our products in cooperation with local banks, Shinkin banks, securities companies, tax and accounting firms, and consulting companies, which introduce domestic investors to us.

2

Our group's system allows us to provide comprehensive financial solution services, including not only sales of operating lease products, but also M&A advisory business, insurance agency business, recruitment business, private equity investment business, and business succession consulting.

ABOUT RISK

Investment in products or businesses that use operating leases does not guarantee gaining yields or maintaining the investment principal. Lessees such as airlines defaulting and economic conditions changing due to fluctuations in market prices of used leased properties, foreign exchange rates, legislations, and tax system can cause losses in investment principal.
When considering such an investment, you need to be fully aware of its risks and do it at your own discretion and responsibility.

GROUP COMPANY

JP Lease Products & Services Co.,Ltd.
JLPS Ireland Limited
Finspire INC.
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