Consolidated Financial Highlights for the Fiscal Year Ended March 31, 2024
[Based on J-GAAP]May 15, 2024
Company Name:
Mitsubishi HC Capital Inc.
Stock Exchange Listed on: Tokyo (Prime Market), Nagoya (Premier Market)
Company Code:8593
URL: https://www.mitsubishi-hc-capital.com/english/
Representative:
Taiju Hisai, Representative Director, President & CEO
For Inquiry:
Haruhiko Sato, Director, Managing Executive Officer TEL: +81-3-6865-3002
Date of General Meeting of Shareholder:
June 25, 2024
Scheduled Date of Submission of Financial Reports:
June 25, 2024
Scheduled Commencement of Dividend Payment:
June 7, 2024
Supplemental Material for Financial Results:
Available
Holding of Financial Results Meeting:
Scheduled (for Institutional Investors and Analysts)(Amounts of less than one million yen are rounded down)
1. Consolidated Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Year-on-year change %)(1) Consolidated Operating Results
Revenues

Operating income

For the fiscal year ended(Millions of yen)%

(Millions of yen)March 31, 2024

1,950,583

2.9

March 31, 2023

1,896,231

7.4(Note) Comprehensive income:%(Millions of yen)

146,176

5.4

138,727

21.6

For the fiscal year ended March 31, 2024:
For the fiscal year ended March 31, 2023:

DilutedEarnings per share earnings
per share

Net income attributable toowners of the parent

Recurring income%(Millions of yen)%

151,633

3.8

123,8426.5

146,07624.6

116,24116.9¥220,222 million (16.9)%¥265,136 million 51.9%

Return on equity

Recurring income
to total assets

Operating margin

For the fiscal year ended

(Yen)

(Yen)

%

%

%

March 31, 2024

86.30

86.06

7.7

1.4

7.5

March 31, 2023

80.95

80.71

8.2

1.4

7.3

(Reference) Share of profit of entities accounted for using equity method: For the fiscal year ended March 31, 2024: ¥9,278 million
For the fiscal year ended March 31, 2023: ¥11,982 million(2) Consolidated Financial Position
Total assets

As ofMarch 31, 2024
March 31, 2023
(Reference) Shareholders’ equity:

Total equity

Equity ratio

Equity per share(Millions of yen)

(Millions of yen)

%

(Yen)

11,149,858
10,726,196

1,705,345
1,551,029

15.1
14.3

1,174.88
1,064.46

As of March 31, 2024:
As of March 31, 2023:¥1,685,267 million¥1,528,773 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

For the fiscal year ended
March 31, 2024
March 31, 2023

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at the end of
the year(Millions of yen)

(Millions of yen)

(49,128)

143,336(222,977)

335,30746,752(127,322)(8,948)460,486(Millions of yen)

(Millions of yen)

2. Dividends
Dividends per share
1st Quarter 2nd Quarter 3rd Quarter
Fiscalyear - end
end
end
end

For the fiscal year

Annual

Total
Dividends
Payout ratio
dividends
to equity(Consolidated)(For the year)(consolidated)

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

(Millions of yen)%%ended March 31, 2023

－

15.00

－

18.00

33.00

47,40240.8

3.3

ended March 31, 2024
ending March 31, 2025
(Forecast)

－

18.00

－

19.00

37.00

53,171

42.9

3.3

－

20.00

－

20.00

40.00

42.5

(Note) The fiscal year-end dividend for the fiscal year ended March 31, 2024 is scheduled to be resolved at the Board of Directors meeting to beheld on May 22, 2024.

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 – March 31, 2025)(Year-on-year change %)Net income attributable to owners of the parent

Earnings per share(Millions of yen)

%

(Yen)

135,000

9.0

94.11

Full year* Notes(1) Significant changes in subsidiaries during the period(Change of specific subsidiaries accompanying the change of scope of consolidation):
Yes
Excluded: Japan Infrastructure Initiative Company Limited, DFL Lease Co., Ltd.
(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards, etc.
:
Yes2) Changes in accounting policies other than 1) above:

No3) Changes in accounting estimates:No4) Restatement of revisions:

No(3) Number of outstanding shares (common shares)
1) Number of outstanding
shares (including
treasury shares)
2) Number of treasury
shares3) Average number ofshares outstanding

As of March 31, 2024

1,466,912,244 shares

As of March 31, 2023

1,466,912,244 shares

As of March 31, 2024

32,489,822 shares

As of March 31, 2023

30,718,231 shares

1,435,070,178 shares

For the fiscal year
ended March 31, 2023

1,436,042,105 shares

For the fiscal year
ended March 31, 2024

(Note) From the fiscal year ended March 31, 2024, Mitsubishi HC Capital Inc. (“Company”) introduced a performance-based
stock compensation plan. The number of treasury shares as of March 31, 2024 includes the Company’s shares heldby a trust under the plan (2,685,268 shares as of March 31, 2024).
Also, the number of treasury shares excluded in calculating the average number of shares outstanding during theperiod includes the Company’s shares held by a trust under the plan (1,777,757 shares for the fiscal year ended March
31, 2024).

(Reference) Summary of Non-Consolidated Results
1. Non-Consolidated Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)(1) Non-consolidated Operating Results(Year-on-year change %)Revenues
Operating income
Recurring income
Net income
For the fiscal year ended
March 31, 2024
March 31, 2023

(Millions of yen)

755,707764,506% (Millions of yen)

(1.2)
(8.8)

29,30531,560Earnings per share
For the fiscal year ended
March 31, 2024
March 31, 2023
(2) Non-consolidated Financial Position
Total assets
As of(Millions of yen)March 31, 2024
4,963,571
March 31, 2023
5,317,966(Reference) Shareholders’ equity:

As of March 31, 2024:
As of March 31, 2023:% (Millions of yen)

(7.1)
74.6

73,293
79,910% (Millions of yen)

(8.3)
135.0

82,79882,204

%

0.7
59.4

Diluted earnings per share
(Yen)

(Yen)

57.70
57.24

57.54
57.08

Total Equity

Equity per share

Equity ratio(Millions of yen)

%

(Yen)

851,108881,21217.1
16.5

592.04612.09¥849,241 million¥879,074 million* This “Consolidated Financial Highlights” is outside the scope of an audit by certified public accountants or an audit firm.
* Explanation regarding the appropriate use of the forecasts, etc.
(Remarks on forward-looking statements)
The forward-looking statements in this report, including financial forecast, have been prepared by using information
available to Mitsubishi HC Capital Inc. (“Company” or “we”) on the date of release and the certain assumptions deemed
reasonable by the Company, and are not intended to assure that the Company will achieve such results. Actual earnings
may differ significantly from the forecasts for various reasons.
* This “Consolidated Financial Highlights” is made in Japanese and translated into English. The Japanese text is the original
and the English text is for reference purposes. If there is any conflict or inconsistency between these two texts, theJapanese text shall prevail.

Contents
1. Summary of Operating Results, etc.

2(1) Summary of Operating Results for the Fiscal Year Ended March 31, 2024

2(2) Summary of Financial Position as of March 31, 2024

7(3) Explanation on Future Forecast Information including Consolidated Financial Forecast

7

2．Basic Policy for Selection of Accounting Standards

7

3．Consolidated Financial Statements and Major Notes

8(1) Consolidated Balance Sheets

8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

10

Consolidated Statements of Income

10

Consolidated Statements of Comprehensive Income11(3) Consolidated Statements of Changes in Equity

12(4) Consolidated Statements of Cash Flows

14(5) Notes to the Consolidated Financial Statements

16(Notes concerning going concern assumption)

16(Changes in accounting policies)

16(Additional information)

16(Segment information, etc.)

17(Per share information)

20(Significant subsequent events)

211

1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Fiscal Year Ended March 31, 2024
1) Overview of Financial Results, etc.
Net income attributable to owners of the parent for the fiscal year ended March 31, 2024 increased by ¥7.6
billion year on year to ¥123.8 billion. Annual dividend per share is to be 37 yen, increasing for 25 consecutive
years.
・Net income attributable to owners of the parent for the fiscal year ended March 31, 2024 exceeded the initial
forecast of ¥120.0 billion by ¥3.8 billion, or 3.2%, hitting a record high for two consecutive years.
・While net income had been slow compared to the initial forecast until the 3rd Quarter end due to losses andexpenses not anticipated in the initial plan, the initial forecast was achieved because profits in Aviation andLogistics segments and gains on sales of assets in Real Estate and Environment & Energy segments
exceeded the plans.
・The annual dividend per share is to be 37 yen*, an increase by ¥4 year on year, as per the initial forecast,increasing for 25 consecutive years.
For the fiscal year ending March 31, 2025, net income attributable to owners of the parent is forecast to be¥135.0 billion, and annual dividend per share is forecast to be ¥40, an increase by ¥3 year on year.
・We forecast the net income attributable to owners of the parent for the fiscal year ending March 31, 2025 will
increase by ¥11.1 billion, or 9.0% year on year, to ¥135.0 billion thanks mainly to the growth in Aviation andother segments, and an absence of large losses recorded in the fiscal year ended March 31, 2024, despite areactionary fall in extraordinary income recorded in the fiscal year ended March 31, 2024.
・The annual dividend per share for the fiscal year ending March 31, 2025 will increase by ¥3 year on year to¥40 (payout ratio of 42.5% on the premise of the financial forecast), increasing for 26 consecutive years.
The first year of the Medium-term Management Plan (2025 MTMP) for the enhancement of the medium- to longterm corporate value got off to a satisfactory start.
・We had a smooth start for financial and non-financial targets. The replacement of business portfolios has also
progressed steadily.
・While there are issues with the pace of the “Evolution and Layering of Business Models” and the Americas of
the Global Business segment, we will recover on a company-wide basis.
・ Regarding the “Frameworks to Promote Transformation”, we have steadily fostered the awareness oftransformation through the use of the Innovation Investment Fund, etc.

* The fiscal year-end dividend for the fiscal year ended March 31, 2024 is scheduled to be resolved at the Board of Directors meeting
to be held on May 22, 2024.

(Billions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Change (%)

Revenues

1,896.2

1,950.5

2.9

Gross profit

357.3

380.0

6.4

Operating income

138.7

146.1

5.4

Recurring income

146.0

151.6

3.8

Net income attributable toowners of the parent

116.2

123.8

6.5

2

2) Major topics
Formulation and announcement of the Medium-term Management Plan for FY2023 – FY2025 (“2025 MTMP”)
The Company formulated the Medium-term Management Plan covering the three-year period from the fiscal year
ending March 31, 2024 to the fiscal year ending March 31, 2026 (the “2025 MTMP”), which was announced in May
2023. The 2025 MTMP is positioned as the “hop” plan of our three Medium-term Management Plans (“hop,” “step,”and “jump”) toward Our 10-year Vision (Together we innovate, challenge and explore the frontiers of the future), andwe intend to promote initiatives such as the “Evolution and Layering of Business Models”, “Key Themes acrossSegments”, and “Frameworks to Promote Transformation”.
We set the financial targets at FY2025 (the fiscal year ending March 31, 2026), the final fiscal year of the 2025
MTMP, as net income attributable to owners of the parent of ¥160.0 billion, ROA of approximately 1.5%, ROE ofapproximately 10%, and dividend payout ratio during the 2025 MTMP of 40% or higher. Net income attributable toowners of the parent is used in the calculations of ROA and ROE.
Please refer to “Medium-term Management Plan for FY2023 - FY2025 (“2025 MTMP”)” posted on the Company’s
website for more details of the 2025 MTMP.
(Medium-term Management Plan Page URL on our website)
https://www.mitsubishi-hc-capital.com/english/investors/managementplan/index.html

Major business topics
TimingApr. 2023

May 2023

Description
 Announced the conclusion of a virtual PPA (an agreement to transfer nonfossil certificates related to renewable electricity) between a group company,
Mitsubishi HC Capital Energy and Tokyo Metro.
 Made CenterPoint Development, a group company engaged in thedevelopment of logistics facilities and asset management businessspecializing in logistics facilities, a wholly-owned subsidiary.
 Announced the launch of the renewable energy aggregation business at ourgroup company HSE (prediction of renewable energy power generation andpreparation of power generation plans, and provision of electricity and nonfossil value based on them).
 Announced the establishment of “Innovation Investment Fund” with a total of¥10.0 billion of funds available for investments in startups with an aim topromote creation of new services and development of new businesses(started operation in April 2023).

Evolution and layering ofbusiness models

Evolution and layering ofbusiness models

Evolution and layering ofbusiness models

Frameworks to promotetransformation〈Major investments by the Innovation Investment Fund during the fiscal year ended March 31, 2024〉
Name of investee

June 2023

TabistBusiness description
Provision of DX services for reservation management and pricing

ZERO

Operation of vending machines to reduce food waste

Credit Engine Group

Development and operation of online lending platform business
Provision of product to improve hospital management such asenhancement of regional cooperation
Operation of private lodging/short-term rental services
Development of e-referral letter system and medical resources
database
Provision of DX services related to decarbonization and EV energy
management

MedUpmatsuri technologies
M-INT
Aakel Technologies

Aug. 2023

 Announced to start business operation in Silicon Valley in the U.S. tostrengthen the business intelligence function as part of the innovation
initiatives.

3

Frameworks to promotetransformation

Sep. 2023

 Mitsubishi HC Capital Energy and Mitsubishi Auto Leasing launched an
integrated service necessary for the introduction and operation of EVs,
including the supply of EVs and charging infrastructure as well as renewableenergy as the power source.

Key themes across segments

 Announced the business alliance with Horizon Ocean Management with theaim of stabilizing and improving efficiency of the O&M service (maintenance,
inspection, and repair) in the offshore wind power generation business.

Evolution and layering ofbusiness models

 Announced the business alliance with Lenovo Japan and Mitsubishi UFJ Trustand Banking with an aim to provide a comprehensive package to support
startups, including PC subscription service.

Evolution and layering ofbusiness models

 Announced the launch of a verification project using robots in logistics
facilities, as a METI commissioned project, together with BIC CAMERA andYAMAZEN.
Nov. 2023
 Started offering facial photo collection and authentication service on a
subscription model with TOPPAN Edge.
 Signed a partnership agreement with AeroEdge manufacturing and selling
aircraft engine parts with an aim to enhance the partnership to accelerate DX
and SDGs in the aviation industry.
 Selected the first projects that passed the final review in the internal startup
program of the Zero-Gravity Venture Lab, an initiative aimed at accelerating
new business development, and officially launched the projects toward theestablishment of a company.
Dec. 2023

Jan. 2024

Evolution and layering ofbusiness models

Evolution and layering ofbusiness models

Frameworks to promotetransformation

 Announced to start a trial for a preventive maintenance service for
infrastructure using an earthworm-like in-pipe crawling robot “Sooha” offeredby SoLARIS.

Evolution and layering ofbusiness models

 Decided to invest in European Energy A/S, a Danish company engaging in
renewable and next generation energy business (investment was executed in
April 2024).

Evolution and layering ofbusiness models

 Transferred shares of our group companies, DFL Lease and Shutoken
Leasing.

Evolution and layering ofbusiness models

 Announced the launch of a joint venture for renewable energy generation
based on a PPA between the Mitsubishi HC Capital Group, TOKYU and Tokyu
Power Supply and the conclusion of a contract for the first project.

Evolution and layering ofbusiness models

Feb. 2024  Announced the transfer of shares of our group company Sekisui Leasing.

Mar. 2024

Evolution and layering ofbusiness models

Evolution and layering ofbusiness models

 Announced to establish “Robotics Business Development Department,” a neworganization dedicated to accelerating development and promotion of new
businesses in the robotics sector in April 2024.

Evolution and layering ofbusiness models

 Began full-scale utilization of generative AI at the Company in cooperation
with Hitachi.

Frameworks to promotetransformation43) Operating results by reportable segments
Operating results by reportable segments were as follows.
Following the organizational changes effective April 1, 2023, the name of the reportable segment“Environment, Energy & Infrastructure” was changed to “Environment & Energy” from the fiscal year ended
March 31, 2024.
(For details of new reportable segments, please refer to “3. Consolidated Financial Statements and Major
Notes, (5) Notes to the Consolidated Financial Statements (Segment information, etc.)” on page 17.)
(Customer Solutions)
Segment profit remained at the same level as a year ago at ¥38.1 billion mainly due to an increase in gainon sale of strategic shareholdings despite absences of large gains on sales related to real estate leasing andinsurance claim income for a certain deal, both recorded in the fiscal year ended March 31, 2023.
(Global Business)
Segment profit decreased by ¥12.4 billion, or 42.8% year on year, to ¥16.6 billion mainly due to an increasein credit costs in line with the worsening market condition of the transportation sector that was strong during the
COVID-19 pandemic in the Americas and an absence of gain on valuation of securities recorded in Europe in
the fiscal year ended March 31, 2023 despite the positive effects by adjusting fiscal period associated with thereorganization of subsidiaries in the Americas.
Effective April 1, 2023, we executed the business integration of three subsidiaries in the Americas having a
different fiscal year-end. While the surviving company’s fiscal year-end is March 31, the two merged companies’
fiscal year-end was December 31. Accordingly, results of the two merged companies for the period from January
1, 2023 to March 31, 2023 are also included in the consolidation for the fiscal year ended March 31, 2024,
resulting in a year-on-year increase in profit.
(Environment & Energy)
Segment profit decreased by ¥4.3 billion, or 37.1% year on year, to ¥7.3 billion mainly due to recording of
impairment losses on a solar power generation project in Japan and a decrease in profits from equity-method
investments despite an increase in gains on sale of assets.
(Aviation)
Segment profit increased by ¥21.1 billion, or 340.3% year on year, to ¥27.3 billion mainly thanks to anincrease in leasing revenue, reversal of large credit costs, a decrease in impairment losses, and a decrease in
exchange revaluation losses related to foreign currency-denominated borrowings in aircraft leasing transactions
that our head office is engaged in.
(Logistics)
Segment profit increased by ¥2.4 billion, or 15.9% year on year, to ¥17.8 billion mainly thanks to an increasein gains on sale of assets (mainly shipping) despite a decrease in leasing revenue attributable to thenormalization of an operating rate of marine containers after a period of overheated market conditions.
(Real Estate)
Segment profit decreased by ¥0.7 billion, or 5.6% year on year, to ¥11.9 billion mainly due to recording oflosses in U.S. projects against a backdrop of the worsening real estate market, the negative effect of thedeconsolidation of Diamond Asset Finance Company Limited, and an increase in tax expenses despite anincrease in gains on sale of assets and recording of gains on step acquisitions in relation to making CenterPoint
Development Inc. a wholly-owned subsidiary.
(Mobility)
Segment profit decreased by ¥1.0 billion, or 26.4% year on year, to ¥2.7 billion mainly due to the negative
effect of the deconsolidation of Mitsubishi HC Capital Auto Lease Corporation.

5

Segment profit or losses by reportable segments(Billions of yen)

Reportable segments

Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Change (%)

Customer Solutions

38.1

38.1

(0.0)

Global Business

29.0

16.6

(42.8)

Environment & Energy

11.6

7.3

(37.1)

Aviation

6.2

27.3

340.3

Logistics

15.3

17.8

15.9

Real Estate

12.6

11.9

(5.6)

Mobility

3.7

2.7(26.4)

Adjustments

(0.6)

1.8

－

Total

116.2

123.8

6.5

(Note) 1. Adjustments of segment profit consist of company-wide expenses and income not allocated to any reportablesegments and profit adjustments recorded by purchase method associated with the merger with Hitachi Capital
Corporation.
2. Segment profit is consistent with net income attributable to owners of the parent on the consolidated statements ofincome.

Segment assets by reportable segments

Reportable segments(Billions of yen)
Change (%)

As of March 31, 2023

As of March 31, 2024

Customer Solutions

3,227.7

2,966.5(8.1)

Global Business

2,644.2

3,070.8

16.1

Environment & Energy

433.2

416.6

(3.9)

Aviation

1,640.2

2,020.0

23.2

Logistics

1,092.9

1,099.0

0.6

Real Estate

447.2

525.4

17.5

Mobility

41.4

51.9

25.5

Adjustments

105.8

29.0

(72.6)

Total

9,632.9

10,179.4

5.7(Note) 1. Segment assets include operating assets, equity-method investments, goodwill and investment securities.
2. Adjustments of segment assets consist mostly of goodwill recognized when Diamond Lease Company Limited and
UFJ Central Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease & Finance Company Limited in 2007 andother segment assets not attributable to any reportable segments such as investment securities related to Corporate,
and offsets of transactions between segments.

6(2) Summary of Financial Position as of March 31, 2024
1) Assets, liabilities, and equity
Compared to the figures as of March 31, 2023, total assets as of March 31, 2024 increased by ¥423.6 billion,
or 3.9%, to ¥11,149.8 billion, total equity increased by ¥154.3 billion, or 9.9%, to ¥1,705.3 billion, and interestbearing debt (excluding lease obligations) increased by ¥203.6 billion, or 2.5%, to ¥8,439.7 billion.
2) Cash flows
Cash and cash equivalents as of March 31, 2024 decreased by ¥125.1 billion, or 27.2% year on year, to¥335.3 billion, due to cash outflows in operating activities of ¥49.1 billion and in financing activities of ¥222.9
billion despite cash inflows in investing activities of ¥143.3 billion.
Net cash outflows from operating activities were ¥49.1 billion (net cash inflows of ¥46.7 billion for the fiscal
year ended March 31, 2023), mainly consisting of cash inflows from income before income taxes of ¥167.6
billion and depreciation, loss on disposal and sales of leased assets of ¥527.0 billion, a decrease in leasereceivables and investments in leases of ¥64.1 billion, a decrease in loans receivable of ¥16.4 billion, a decrease
in installment receivables of ¥12.1 billion, and an increase in trade payables of ¥10.9 billion despite cash
outflows from purchases of leased assets of ¥884.8 billion.
Net cash inflows from investing activities were ¥143.3 billion (net cash outflows of ¥127.3 billion for the fiscal
year ended March 31, 2023), mainly consisting of net cash inflows from payments into/proceeds from withdrawalof time deposits of ¥125.8 billion.
Net cash outflows from financing activities were ¥222.9 billion (net cash outflows of ¥8.9 billion for the fiscal
year ended March 31, 2023), mainly consisting of net cash outflows from direct financing of ¥70.5 billion andindirect financing through bank borrowings of ¥89.8 billion, and dividends paid of ¥51.7 billion.
(3) Explanation on Future Forecast Information including Consolidated Financial Forecast
Consolidated financial forecast (net income attributable to owners of the parent) for the fiscal year ending
March 31, 2025 is forecast to be ¥135.0 billion, an increase by ¥11.1 billion, or 9.0 % year on year.
We expect profit growth thanks mainly to the growth in Aviation and other segments and an absence oflarge losses recorded in the fiscal year ended March 31, 2024 despite a reactionary fall due to an absence of
extraordinary income recorded in the fiscal year ended March 31, 2024.
Annual dividend per share for the fiscal year ending March 31, 2025 is forecast to be ¥40 (interim: ¥20, yearend: ¥20, payout ratio of 42.5% on the premise of the financial forecast), an increase by ¥3 year on year,
increasing for 26 consecutive years.

2. Basic Policy for Selection of Accounting Standards
The MHC Group has adopted Japan GAAP considering the comparability of the consolidated financial
statements between periods and companies. The MHC Group has not yet decided whether to adopt IFRS but
plans to take appropriate actions in consideration of both domestic and international situations.

73. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
AssetsCurrent assets
Cash and deposits
Installment receivables
Lease receivables and investments in leases
Operating loans receivables
Other operating loans receivable
Lease and other receivables
Securities
Merchandise
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Leased assets
Leased assets
Advances on purchases of leased assets
Total leased assets
Other operating assets
Own-used assets
Total property, plant and equipment
Intangible assets
Leased assets
Leased assets
Total leased assets
Other intangible assets
Goodwill
SoftwareTelephone subscription right
Other
Total other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Distressed receivables
Deferred tax assets
Retirement benefit asset
Other investments
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets

8(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

589,688
231,280
3,264,169
1,691,579
219,632
77,647
3,213
46,064160,487(22,094)
6,261,670

366,478
172,368
3,153,989
1,850,117
211,228
80,0302,565
38,240
194,181(28,373)
6,040,826

3,332,834
58,9693,391,803
219,625
17,4783,628,907

3,891,057
119,139
4,010,196
207,957
18,561
4,236,715

23,19723,197

12,98912,98991,497
21,622
33
111,379
224,532
247,730

102,091
19,975
23
112,750
234,839
247,829

400,113
99,91233,224
3,389
115,450(68,806)
583,284
4,459,922

427,529
122,035
26,14812,37999,552(66,983)
620,661
5,105,206

4,603
4,603
10,726,196

3,825
3,825
11,149,858

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Commercial papers
Current maturities of loans from thesecuritizations of the minimum future rentals
on lease contracts
Lease obligations
Income taxes payable
Deferred profit on installment sales
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Loans from the securitizations of the minimum
future rentals on lease contracts, less current
maturities
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors(and other officers)
Provision for share awards for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Reserve for contract of insurance
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total equity
Total liabilities and equity

9(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

160,678
633,099
642,883
959,951
559,485

171,616
471,060
563,684
1,012,618
784,178

246,640

224,330

19,794
9,381
9,648
15,89017,852
13,083
7,016
17,420

2,255

2,091

252,6433,512,353

261,017
3,545,972

1,582,848
3,253,535

1,606,588
3,435,702

357,662

341,628

43,089143,81037,427
159,118

110

69

－

516

6,463
40,635
12,055
222,6025,662,813
9,175,166

6,049
39,481
12,818259,139
5,898,539
9,444,512

33,196547,344
710,989(19,158)
1,272,372

33,196546,268
775,152(20,894)
1,333,722

14,817

14,98753,051
186,545
1,985

36,817
292,477
7,262

256,400

351,5442,138
20,118
1,551,029
10,726,196

1,866
18,211
1,705,345
11,149,858

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the fiscal year ended
March 31, 2023
(April 1, 2022 – March 31, 2023)
Revenues
Cost of revenues
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rental income
Share of profit of entities accounted for using
equity method
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other non-operating expenses
Total non-operating expenses
Recurring income
Extraordinary income
Gain on sale of investment securities
Gain on sale of shares of subsidiaries andassociates
Gain on valuation of investment securities
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries andassociates
Impairment losses
Total extraordinary losses
Income before income taxes
Income taxes- current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

10

For the fiscal year ended
March 31, 2024
(April 1, 2023 – March 31, 2024)

1,896,231
1,538,904
357,327
218,600
138,727

1,950,583
1,570,487
380,095
233,919
146,176

2,467
1,907
120

3,912
2,411
155

11,982

9,278

8,150
24,628

7,703
23,460

7,746
5,437
4,096
17,279146,076

11,061
3,542
3,399
18,003
151,633

2,996

7,243

－

5,306

7,194
1,159
11,350－4,822
17,372

407
2,369

296
－

1,006

1,032

479
4,262
153,164
24,941
10,51035,451
117,7121,471
116,241－
1,329
167,676
27,215
15,79743,013
124,663820
123,842(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the fiscal year ended
March 31, 2023
(April 1, 2022 – March 31, 2023)
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

11

For the fiscal year ended
March 31, 2024
(April 1, 2023 – March 31, 2024)

117,712

124,663

(463)

140

39,631
93,891
1,854(18,484)
104,217
4,992

12,510

4,692

147,424265,136

95,558220,222

262,934

218,986

2,202

1,235

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Balance at the beginning of
the period
Cumulative effects of changes
in accounting policies

33,196

Restated balance

33,196

Retained earnings

548,586

638,043

Treasury shares

Total shareholders’equity(19,369)

1,200,456－

548,586

638,043(19,369)

1,200,456

Changes during the period
Dividends of surplus(43,087)(43,087)

Net income attributable toowners of the parent
Changes due to a merger ofa consolidated subsidiary
and a non-consolidated
subsidiary
Change in ownership interestof parent due to transactions
with non-controlling interests

116,241

116,241

(206)

(206)

(1,191)(1,191)

Purchase of treasury shares(49)

Disposal of treasury shares

(0)

(0)

211

161

Net changes in items otherthan shareholders' equity
Total changes during the period－(1,241)

72,946

210

71,916

Balance at the end of the period

33,196547,344

710,989(19,158)

1,272,372

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at the beginning of
the period
Cumulative effects of changes inaccounting policies
Restated balance

14,953

Deferred
gains orlosses onhedges1,460

Foreigncurrencytranslation
adjustment

92,776

Total
Remeasurements
accumulatedof definedotherbenefit planscomprehensive

Noncontrollinginterests

Total equity

1,861

21,835

1,333,467

income123394
15,347

Shareacquisitionrights109,313394

1,460

92,776

123

109,707394
1,861

21,835

1,333,861

Changes during the period
Dividends of surplus(43,087)

Net income attributable toowners of the parent
Changes due to a merger ofa consolidated subsidiary
and a non-consolidated
subsidiary
Change in ownership interestof parent due to transactions
with non-controlling interests

116,241

Purchase of treasury shares(0)

Disposal of treasury shares

161

(206)
(1,191)

Net changes in items otherthan shareholders' equity(529)

51,591

93,7691,861

146,693276(1,717)145,252

Total changes during the period(529)

51,591

93,7691,861

146,693276(1,717)217,168

Balance at the end of the period

14,81753,051

186,545

1,985

256,400

2,138

20,118

1,551,029

12

For the fiscal year ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Balance at the beginning of
the period
Cumulative effects of changes
in accounting policies

33,196

Restated balance

33,196

Retained earnings

Treasury shares

Total shareholders’equity710,989(19,158)

1,272,372

547,344(7,957)547,344703,032(7,957)(19,158)

1,264,414

Changes during the period
Dividends of surplus(51,723)(51,723)

Net income attributable toowners of the parent
Changes due to a merger ofa consolidated subsidiary
and a non-consolidated
subsidiary
Change in ownership interestof parent due to transactions
with non-controlling interests

123,842

123,842
－

(966)

(966)

Purchase of treasury shares(2,134)(2,134)

398

288

(109)

Disposal of treasury shares
Net changes in items otherthan shareholders' equity
Total changes during the period－(1,076)

72,119(1,735)69,307

Balance at the end of the period

33,196546,268

775,152(20,894)

1,333,722

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at the beginning of
the period

14,817

Deferred
gains orlosses onhedges53,051

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

Noncontrollinginterests

Total equity

186,545

1,985

256,400

2,138

20,118

1,551,029

Cumulative effects of changes inaccounting policies
Restated balance(7,957)
14,81753,051

186,545

1,985

256,400

2,138

20,1181,543,072

Changes during the period
Dividends of surplus(51,723)

Net income attributable toowners of the parent
Changes due to a merger ofa consolidated subsidiary
and a non-consolidated
subsidiary
Change in ownership interestof parent due to transactions
with non-controlling interests

123,842

Purchase of treasury shares(2,134)

Disposal of treasury shares

288

－
(966)

Net changes in items otherthan shareholders' equity

169(16,234)

105,931

5,276

95,143(271)(1,906)

92,965

Total changes during the period

169(16,234)

105,931

5,276

95,143(271)(1,906)

162,273

Balance at the end of the period

14,98736,817

292,477

7,262

351,544

1,866

18,211

1,705,345

13

(4) Consolidated Statements of Cash Flows
For the fiscal year ended
March 31, 2023
(April 1, 2022 – March 31, 2023)
Cash flows from operating activities
Income before income taxes
Depreciation of leased assets
Loss on disposal and sales of leased assets
Depreciation of other operating assets
Depreciation and loss on disposal of own-usedassetsOther depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Financial expenses and interest expenses
Share of loss (gain) of entities accounted forusing equity method
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on step acquisitions(Increase) decrease in rental income and otherreceivables(Increase) decrease in installment receivables(Increase) decrease in lease receivables andinvestments in leases(Increase) decrease in loans receivable(Increase) decrease in operating securities andinvestments in private equity securities
Purchases of leased assets
Purchases of other operating assets
Increase (decrease) in trade payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of own-used assets
Purchase of investment securities
Proceeds from sale and redemption of investment
securities
Payments for acquisition of newly consolidated
subsidiaries
Payments for sale of consolidated subsidiaries
Proceeds from sales of consolidated subsidiaries
Payments into time deposits
Proceeds from withdrawal of time deposits
Other
Cash flows from investing activities

14(Millions of yen)
For the fiscal year ended
March 31, 2024
(April 1, 2023 – March 31, 2024)

153,164
313,992
165,768
12,588167,676
313,589
213,422
11,974

11,48910,677

3,436
8,601

3,845
9,232

(13,265)(11,845)(4,375)
143,227(6,323)
219,113(11,982)(9,278)(4,825)(2,588)－(6,947)

1,006(4,273)(1,159)(4,822)

3,482

3,143

11,942

12,132

23,45864,179(76,750)

16,46814,385(9,530)(479,501)(16,629)(22,646)219
233,036
6,557(139,042)(53,800)
46,752(884,863)(21,718)
10,924
67,903
164,681
10,944(216,901)(7,852)(49,128)(8,793)(9,981)(7,532)(2,965)20,302

23,412(4,677)(8,659)(14,157)
2,816(252,427)
139,045551(127,322)(849)
12,167(60,714)
186,516
1,960
143,336

For the fiscal year ended
March 31, 2023
(April 1, 2022 – March 31, 2023)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers
Proceeds from loans from the securitizations of
the minimum future rentals on lease contracts
Repayments of loans from the securitization of
the minimum future rentals on lease contracts
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Dividends paid
Dividends paid to non-controlling interests
Proceeds from share issuance to non-controllingshareholders
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of theperiodIncrease (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at the end of the period

15(Millions of yen)
For the fiscal year ended
March 31, 2024
(April 1, 2023 – March 31, 2024)

80,025(130,161)(205,345)
204,526

519,089

304,665(407,007)(369,364)

1,065,363(990,689)
361,330(463,710)(43,087)(2,552)

1,212,669(1,097,132)
494,368(704,767)(51,723)(3,227)

7,282

385

(3,553)(1,834)(1,276)(8,948)(6,199)(222,977)

29,816

3,589(59,701)(125,179)

520,083

460,486104－

460,486

335,307(5) Notes to the Consolidated Financial Statements(Notes concerning going-concern assumption)
Not applicable(Changes in accounting policies)(Application of Accounting Standards Update (ASU) 2016-13 “Financial Instruments – Credit Losses”)
Certain overseas consolidated subsidiaries applied ASU 2016-13 “Financial Instruments – Credit Losses”
from the fiscal year ended March 31, 2024. As a result, allowance for doubtful accounts is recorded forfinancial assets in these overseas consolidated subsidiaries by estimating the expected credit losses over the
expected remaining life of the financial assets at initial recognition.
As a result of this change, retained earnings in the consolidated financial statements as of April 1, 2023
decreased by ¥7,957 million.
(Additional information)(Performance-based stock compensation plan)
During the fiscal year ended March 31, 2024, the Company introduced a performance-based stockcompensation plan (“Plan”) as an incentive plan for the Company’s directors excluding those who are Audit& Supervisory Committee members (excluding non-executive directors and non-residents in Japan;
hereinafter the same applies) and executive officers, etc. (excluding non-residents in Japan; hereinafter
directors and executive officers are collectively referred to as “Directors, etc.”)(1) Overview of the Plan
The Plan is a stock compensation plan under which the Company delivers and pays (“deliver”) the
Company’s shares and cash equivalent to the conversion value of the Company’s shares (“Company Shares,etc.”) based on the attainment of the targeted performance indicators set out in the Company’s MTMP to theCompany’s Directors, etc. The Company entrusts money to a trust bank in advance to acquire the Company’s
shares to be delivered, and the trust bank uses the cash to acquire the Company’s shares. Also, points are
granted to Directors, etc. based on the share delivery rules established separately, and the Company Shares,
etc. are delivered to Directors, etc. based on the points.
(2) The Company’s shares remaining in the trust
The Company’s shares remaining in the trust are recorded as treasury shares in Equity at the carrying
amount at the trust. The carrying amount and the number of shares of these treasury shares as of March 31,
2024 are ¥2,318 million and 2,685 thousand shares, respectively.

16

(Segment information, etc.)
1. Overview of reportable segments
Following the organizational changes effective April 1, 2023, the name of the reportable segment“Environment, Energy & Infrastructure” was changed to “Environment & Energy” from the fiscal year ended
March 31, 2024.
The change was merely a name change, and there are no impacts on segmentation or figures of segment
information, etc.
Details of new reportable segments after the change of segment name are as follows.
Reportable segments

Main services and business description

Customer Solutions

Finance solution business for companies and government agencies,
energy-saving solution business,sales finance business provided through collaboration with vendors,
real estate leasing business, and financial service business

Global Business

Finance solution business, and sales finance business provided through collaboration
with vendors in Europe, the Americas, China, and ASEAN region

Environment & Energy

Renewable energy business and environment related finance solution business

Aviation

Aircraft leasing business and aircraft engine leasing business

Logistics

Marine container leasing business and railway freight car leasing business

Real Estate

Real estate finance business, real estate investment businessand real estate asset management business

Mobility

Auto leasing business and supplementary services

The segment information for the fiscal year ended March 31, 2023 is presented under the new segment
name.
2. Calculation of profit or loss and assets by reportable segment
The accounting treatments applied to reported business segments are consistent with those adopted in
preparation of the consolidated financial statements.
Profit of reportable segments are based on net income attributable to owners of the parent.
Intersegment earnings and transfers are based on market prices.

17

3. Information on profit or loss and assets by reportable segment
For the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Reportable segments

Segment profit
Segment assets(Note) 3(Millions of yen)Amountrecorded in
Adjustments consolidated(Note) 1
financialstatements(Note) 2

Customer
SolutionsGlobalBusiness

Environment& Energy

Aviation

Logistics

Real Estate

Mobility

38,16729,013

11,657

6,209

15,385

12,645

3,798

(636)

116,241

3,227,742

2,644,283

433,296

1,640,232

1,092,910

447,277

41,402

1,199,051

10,726,196(Note)1. Adjustments of segment profit consist mostly of adjustments of company-wide expenses included in selling, general andadministrative expenses not allocated to any reportable segments. It also includes a profit adjustment of ¥2,775 million related
to the merger with Hitachi Capital Corporation under the purchase method.
Adjustments of segment assets include goodwill recognized when Diamond Lease Company Limited and UFJ Central
Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease & Finance Company Limited in 2007, other segment assets not
attributable to any reportable segments, such as investment securities related to Corporate, and elimination of intersegment
transactions totaling ¥105,820 million, and the sum of such amount and the segment assets of all reportable segments
amounted to ¥9,632,966 million. The remainder of the adjustments of segment assets of ¥1,093,230 million represents thedifference between total segment assets including Corporate and total consolidated assets, which consists of assets otherthan segment assets such as cash and deposits and own-used assets.
2. Segment profit is consistent with net income attributable to owners of the parent on the consolidated statements ofincome.
3. Segment assets include operating assets, equity-method investments, goodwill and investment securities.

For the fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)
Reportable segments

Segment profit
Segment assets(Note) 3(Millions of yen)Amountrecorded in
Adjustments consolidated(Note) 1
financialstatements(Note) 2

Customer
SolutionsGlobalBusiness

Environment& Energy

Aviation

Logistics

Real Estate

Mobility

38,15916,6097,331

27,338

17,835

11,934

2,796

1,837

123,8422,966,569

3,070,801

416,600

2,020,037

1,099,079

525,41451,952

999,401

11,149,858(Note)1. Adjustments of segment profit consist of company-wide expenses and income not allocated to any reportable segments. It
also includes a profit adjustment of ¥1,387 million related to the merger with Hitachi Capital Corporation under the purchasemethod.
Adjustments of segment assets include goodwill recognized when Diamond Lease Company Limited and UFJ Central
Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease & Finance Company Limited in 2007, other segment assets not
attributable to any reportable segments, such as investment securities related to Corporate, and elimination of intersegment
transactions totaling ¥29,016 million, and the sum of such amount and the segment assets of all reportable segments
amounted to ¥10,179,473 million. The remainder of the adjustments of segment assets of ¥970,385 million represents thedifference between total segment assets including Corporate and total consolidated assets, which consists of assets otherthan segment assets such as cash and deposits and own-used assets.
2. Segment profit is consistent with net income attributable to owners of the parent on the consolidated statements ofincome.
3. Segment assets include operating assets, equity-method investments, goodwill and investment securities.

18

4. Information on impairment losses on non-current assets by reportable segment
For the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments

Impairment losses

Customer
SolutionsGlobalBusiness

Environment &Energy－479－

Aviation

Logistics

Real Estate

5,946

2,473

－

Mobility－

Corporate/elimination

－

Total

8,899

(Note) The amount in “Global Business” is recorded in extraordinary losses as impairment loss on goodwill andintangible assets. The amount in “Aviation” and “Logistics” is recorded in cost of revenues as impairment
loss on leased assets.
For the fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable segments

Impairment losses

Customer
SolutionsGlobalBusiness

Environment &Energy

－

－

5,816

Aviation

Logistics

Real Estate

2,713

－

－

Mobility－

Corporate/elimination

－

Total

8,529

(Note) The amount in “Environment & Energy” is recorded in cost of revenues as impairment loss on otheroperating assets, etc. The amount in “Aviation” is recorded in cost of revenues as impairment loss on
leased assets.

5. Information on goodwill amortization and unamortized balance by reportable segment
For the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments

Corporate/elimination(Note)

Total

Customer
SolutionsGlobalBusiness

Environment& Energy

Aviation

Logistics

Real Estate

Amortization during
the period

－

841

－

3,138

1,935

500

67

2,117

8,601

Balance at the end of
the period－

13,330－32,00736,975

－

714

8,469

91,497

Mobility(Note) Corporate/elimination for amortization during the period and balance at the end of the period represents
amortization and outstanding balance, respectively, of goodwill recognized when Diamond Lease
Company Limited and UFJ Central Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease &Finance Company Limited in 2007.

For the fiscal year ended March 31, 2024 (April 1, 2023 to March 31, 2024)(Millions of yen)
Reportable segments

Corporate/elimination(Note)

Total

Customer
SolutionsGlobalBusiness

Environment& Energy

Aviation

Logistics

Real Estate

Amortization during
the period

－

1,105

－

3,356

2,070

511

71

2,117

9,232

Balance at the end of
the period－

14,070－30,82337,42912,712702

6,352

102,091

Mobility(Note) Corporate/elimination for amortization during the period and balance at the end of the period represents
amortization and outstanding balance, respectively, of goodwill recognized when Diamond Lease
Company Limited and UFJ Central Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease &Finance Company Limited in 2007.

19

(Per share information)
For the fiscal year ended
March 31,2023

For the fiscal year ended
March 31,2024(April 1, 2022 – March 31, 2023) (April 1, 2023 – March 31, 2024)

Equity per share
Earnings per share¥1,064.46¥1,174.88¥80.95¥86.30

Diluted earnings per share¥80.71¥86.06(Note) The basis for calculation of equity per share, earnings per share, and diluted earnings per share is as follows.
1.Equity per share
For the fiscal year ended
March 31,2023

For the fiscal year ended
March 31,2024(As of March 31, 2023)(As of March 31, 2024)

Total equity (millions of yen)Amount deducted from total equity(millions of yen)

1,551,029

1,705,345

22,256

20,078(Of which, share acquisition rights (millions of(2,138)(1,866)yen))(Of which, non-controlling interests (millions of(20,118)(18,211)yen))
Equity related to common shares at end of the
1,528,773
1,685,267
period (millions of yen)
Number of common shares used for calculationof equity per share at the end of the period
1,436,194
1,434,422(thousand shares)(Note) The Company’s shares held by a trust under the performance-based stock compensation plan is included in
the number of treasury shares excluded from the number of outstanding shares as of March 31 used for
calculation of equity per share. The number of treasury shares excluded was 2,685 thousand shares as ofMarch 31, 2024.
2. Earnings per share and diluted earnings per share
For the fiscal year ended
March 31,2023

For the fiscal year ended
March 31,2024(April 1, 2022 – March 31, 2023) (April 1, 2023 – March 31, 2024)

Earnings per share
Net income attributable to owners of the parent(millions of yen)Amount not attributable to commonshareholders (millions of yen)
Net income attributable to commonshareholders of the parent (millions of yen)
Average number of shares during the period(thousand shares)

Diluted earnings per share
Adjustment to net income attributable toowners of the parent (millions of yen)
Increase in common shares (thousand shares)

116,241

123,842－－

116,241

123,842

1,436,042

1,435,070

－

－

4,209
3,966
(Of which, share acquisition rights (thousand(4,209)(3,966)
shares))Summary of potential dilutive shares not includedin the calculation of diluted earnings per share――
due to their anti-dilutive effect(Note) The Company’s shares held by a trust under the performance-based stock compensation plan is included in
the number of treasury shares excluded in the calculation of average number of shares during the period used
for calculation of earnings and diluted earnings per share. The average number of treasury shares during theperiod excluded was 1,777 thousand shares for the fiscal year ended March 31, 2024.
20

(Significant subsequent events)(New associate accounted for using the equity method through share acquisition)
The Company resolved at its Board of Directors meeting on January 19, 2024 to invest approximately €700
million in European Energy A/S (“European Energy”), a Danish company developing and operating renewable andnext generation energy business mainly in Europe, and signed an investment agreement to acquire 20% of
outstanding shares and voting rights in European Energy (“Investment”) on the same day. The investment basedon the agreement was completed on April 16, 2024. As a result, European Energy has become the Company’s
associate accounted for using the equity method.
1.

Strategic Rationales of the Investment
European Energy, active in 28 countries, achieved more than accumulated 3GW of renewable energy
development and has more than 60GW of development and construction pipelines mainly in Europe.
Further, European Energy has a large growth potential by being a global leading and pioneering player inPower-to-X which produces green energy such as e-methanol and green hydrogen generated from renewableenergy sources.
“Promote a Decarbonized Society” is one of the Company’s important materiality. The Company has been
expanding its renewable energy business and increasing added value in the segment to realize this materiality.
In FY 2023, the Company launched its Medium-term Management Plan for FY2023-FY2025 (“2025 MTMP”) andis proceeding with the “Evolution and Layering of Business Models” to achieve business portfolio transformation.
As one of its long-term growth strategies, the Company has been pursuing to enhance development functionsof renewable energy business in Europe whereby this Investment will accelerate the initiative.
The Company, through the strategic partnership with European Energy and by leveraging the capability andknowledge of both companies, will accelerate the development of renewable and green energy on a global scale.
By enhancing its initiatives in the Environment & Energy business, the Company will contribute to realizing adecarbonized society.

2.

3.

Overview of European Energy(1)Company nameEuropean Energy A/S(2)Line of business

Renewable energy and next generation energy business(3)

Company size
(Year ended December
2023)

Consolidated net assets: €432 million
Consolidated total assets: €2,027 million

Date of the Investment
April 16, 2024

4.

5.

Number of shares to be transferred, transfer price and number of shares held before and after the Investment(1)

Number of shares held
before the transfer－ share(Number of voting rights: －)(Voting rights holding ratio: －%)(2)

Number of shares to betransferred

Outstanding share: Approximately 75 million shares(3)

Transferred priceApproximately €700 million(4)

Number of shares held
after the transfer

Approximately 75 million shares(Number of voting rights: approximately 75 million)(Voting rights holding ratio: 20.0%)

Method of funding and payment
The Company has acquired the shares of European Energy through its wholly-owned subsidiary in Denmark,MHC Energy Europe ApS, mainly by undertaking new shares privately issued and allocated by European Energy.
We funded the Investment mainly with our own funds, borrowings and corporate bonds.
21