Financial Results
for the 2nd Quarter of Fiscal Year Ending March 31, 2024
Mitsubishi HC Capital Inc.
November 10, 2023

Disclaimer⚫ This presentation contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results ofoperations, financial conditions and other overall management of Mitsubishi HC Capital Inc. and/or its group companies.
⚫ These forward-looking statements are inherently subject to a number of risks and uncertainties that could cause the actual results,
performance, achievements, financial position etc. to differ materially from the information expressed or implied by these forward-looking
statements, which is based on assumptions and beliefs in light of information currently available to the management of Mitsubishi HC Capital
Inc. at the time of publication. Accordingly, due to various risks and uncertainties, the statements are not a guarantee of future performance ordevelopments. We may not be successful in implementing our business strategy, and management may fail to achieve its targets for a wide
range of possible reasons.
⚫ The figures in this presentation, unless specified “by Quarter”, represent values for the cumulative period of this current quarter.
Also, figures are rounded down in this presentation, which may cause a fractional error in total amounts. We undertake no obligation to update
or correct any forward-looking statements after the date of this presentation. The information set forth in this presentation is subject to change
without notice.
⚫ This presentation is not intended to solicit, offer, or sell investments in any jurisdiction, and should not be the sole basis for making investment
and other decisions. The reader is cautioned not to place undue reliance on forward-looking statements.
⚫ We assume no liability for any damage resulting from the use.
⚫ This presentation is created 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, the Japanese text shall prevail.
Definitions of Terms and Figures Used in this Presentation
◼
◼
◼
◼
◼
◼
◼
◼

MHC: Mitsubishi HC Capital
MUL: Mitsubishi UFJ Lease & Finance
HC: Hitachi Capital
JSA: Jackson Square Aviation (Aircraft leasing company)
ELF: Engine Lease Finance (Aircraft engine leasing company)
CAI: CAI International (Marine container leasing company)
DAF: Diamond Asset Finance (Share transfer completed in March 2023)
CPD: CenterPoint Development (Became a wholly-owned subsidiaryin April 2023)◼ CA: Mitsubishi HC Capital Auto Lease (Merger with Mitsubishi
Auto Leasing (surviving company) completed in April 2023)◼ Asset-related gain/loss:
The sum of gain/loss on sales and impairment losses of owned assets based on grossprofit in the Customer Solutions, Environment & Energy, Aviation, Logistics, and Real
Estate segments◼ Base profit: Gross profit other than asset-related gain/loss◼ Net Income: Net income (quarterly/annually) attributable to owners of the parent◼ ROA:

Annualized net income(total assets at the end of previous FY + total assets at the end of this quarter) / 2◼ ROE:

Annualized net income(equity at the end of previous FY + equity at the end of this quarter) / 2◼ Segment Assets:
Operating assets + equity method investments + goodwill + investment securities, etc.

1

IndexI.

Highlights

II.

Financial Results for 2Q FYE 3/2024

III. Segment Updates
IV. Financial Forecast for FYE 3/2024

V. Progress of the Medium-term Management Plan
VI. Appendix
2

I.

Highlights

3

Highlights
Net income decreased by 10.4 billion yen (16.5%) YoY to 52.7 billion yen.
✓

Net income for 2Q FYE 3/2024 decreased by 10.4 billion yen (16.5%) YoY to 52.7 billion yen due to the losses in the Real Estatebusiness in the U.S.A. and the impairment losses in the Environment & Energy business, etc., which were not included in the initial plan,
while the Aviation business has been steadily recovering and marine container leasing business favorably progressed compared with
the initial plan.

✓

On the other hand, new transactions volume increased by 134.9 billion yen (10.6%) YoY to 1,413.3 billion yen, thanks to an increase in
new transactions in the Aviation and Customer Solutions segments, etc. Segment assets also increased by 587.3 billion yen (6.1%) to
10,220.3 billion yen compared with FYE 3/2023.

Financial forecast for FYE 3/2024 (net income: 120.0 billion yen) remains unchanged.
✓

The progress made toward the full-year financial forecast (net income: 120.0 billion yen) during 2Q FYE 3/2024 was 43.9%.

✓

Despite the progress, the full-year financial forecast remains unchanged, because the net income in the Aviation business is planned to
be weighted toward the second half and we expect marine container leasing business continues to progress favorably compared with
the initial plan, and gains on sales of owned assets will exceed the initial plan.

Steadily implementing each initiative set forth in the Medium-term Management Plan (2025 MTMP)
toward Our 10-year Vision.
✓

We have been reorganizing our businesses and Group companies in order to reallocate management resources strategically andoptimize business operation.

✓

We created new businesses in the areas of EVs and decarbonization solutions, which are key themes across segments.

✓

As a part of our frameworks to promote transformation, we have established the Innovation Investment Fund, amounting to a total of
10 billion yen. We also lunched the Zero-Gravity Venture Lab (called “ZERO-GRA”), an internal startup program.

4II. Financial Results for 2Q FYE 3/2024

5

Financial Results for 2Q FYE 3/2024◼

Net income for 2Q FYE 3/2024 decreased by 10.4 billion yen (16.5%) YoY to 52.7 billion yen, due to the losses in the Real Estate business in the
U.S.A. and the impairment losses in the Environment & Energy business, etc., which were not included in the initial plan, while the Aviation businesshas been steadily recovering and marine container leasing business favorably progressed compared with the initial plan.

◼

On the other hand, new transactions volume increased by 134.9 billion yen (10.6%) YoY to 1,413.3 billion yen, thanks to an increase in newtransactions in the Aviation and Customer Solutions segments, etc. Segment assets also increased by 587.3 billion yen (6.1%) to 10,220.3 billion yen
compared with FYE 3/2023.

(Billion Yen)
1
2
3
4
5
6

Revenues
Gross Profit
Operating Income
Recurring Income
Net Income
New Transactions Volume

(a)

(b)

(c)=(b)-(a)(d)

2Q
FYE 3/2023

2Q
FYE 3/2024

YoY Change

Impact of Fluctuation in
Exchange Rates*1
+28.8
+7.9
+3.6
+3.7
+2.4*2
+64.7

944.7
177.9
74.1
75.7
63.1
1,278.4
FYE 3/2023(Billion Yen)

7

Total Segment Assets

9,632.92Q
FYE 3/2023
8910Interim Dividend
ROA
ROE

¥15
1.2%
8.9%

942.5
175.0
64.4
66.9
52.7
1,413.3
2Q
FYE 3/2024
10,220.3

2Q
FYE 3/2024
¥18
1.0%
6.6%

-2.2
-2.9
-9.7
-8.8
-10.4
+134.9YoY Change+587.3

Impact of Fluctuation in
Exchange Rates*1+549.0(e)=(c)/(a)YoY Change
(%)
-0.2%
-1.6%
-13.1%-11.7%-16.5%+10.6%YoY Change
(%)
+6.1%

YoY Change+¥3-0.2pt-2.3pt*1 Calculated by difference YoY in exchange rates when incorporating the financial statements in overseas subsidiaries(refer to page 39 for applied exchange rates)*2 The impact was approx. +4.1 billion yen, including a decrease in exchange revaluation losses (approx. +1.6 billion yen) in relation toforeign currency-denominated borrowings for aircraft leasing transactions owned by MHC.
Note: As MHC denominates financial statements in JPY, foreign currency-denominated assets and liabilities are converted into JPY.
However, for accounting purposes, while assets (aircraft) use the exchange rate as of the lease start date, the liabilities (borrowing)
use the exchange rate as of the final day of the fiscal period. Therefore, exchange revaluation losses or gains (weak yen: revaluation
losses, strong yen: revaluation gains) may occur

6Increase/Decrease Factors in Net Income (YoY)◼

Net income decreased YoY due to the losses in Real Estate business in the U.S.A. and the impairment losses in Environment & Energy business, etc.
which were not included in the initial plan. Although operating expenses increased YoY due to the reorganization of subsidiaries in the Americas, etc.,
such increase was within the budget of the initial plan.
+ : Positive effects on net income- : Negative effects on net income

Increase/Decrease in Net Income(1) Business Growth*1 (excl. impairment losses, etc.*2): Up ¥5.8Bn(Billion Yen)

Net Income
-10.4

(1)
(3)

+5.8

+1.6

+0.1
-9.1

-1.7

(4)

Business
Growth*1 -1.4

(5)

52.7
Positive Factors

Business
Growth*¹

Impairment
losses, etc.*²

An increase in leasing revenues, a decrease in
exchange revaluation losses related to aircraft
leasing transactions owned by MHC, etc.

◼ Customer Solutions(-¥5.2Bn):

Absences of the large gains on sales andinsurance claim income in FYE 3/2023, etc.

(2) Impairment losses, etc.*2: Up ¥7.2Bn

63.1

2Q
FYE 3/2023◼ Aviation (+¥5.7Bn):

(6)

-7.2
(2)

◼ Global Business (+¥5.4Bn): Positive effects by the reorganization of subsidiaries
in the Americas*3 (+¥3.1Bn), etc.

Credit Costs

Negative Factors

OperatingExpenses

Extraordinary
Income/Loss

Others2Q
FYE 3/2024(excl. impairment
losses, etc.*2)

2Q
FYE 3/2023

2Q
FYE 3/2024

181.8

187.7

(2) Impairment losses, etc.*2

4.0

11.3

(3) Credit Costs

6.4

4.7

(4) Operating Expenses

95.5

104.6

(5) Extraordinary Income/Loss

8.6

6.9

(6) Others

21.2

21.1

(Billion Yen)
(1) Business Growth*1 (excl. impairment losses, etc.*2)(Note) Figures shown in (1) through (5) are pre-tax basis. Taxes are included in (6)*1 Gross profit + non-operating income/loss(however, non-operating income/loss do not include gains on bad debts recovered)*2 Impairment losses and losses in real estate business in the U.S.A.
*3 Refer to page 29 for details*4 The segment name was changed due to the reorganization on April 1, 2023

◼ Environment & Energy*4(-¥5.8Bn):

Impairment losses on a solar power generation
project◼ Real Estate (-¥5.5Bn):

Losses in real estate business in the U.S.A., etc.

◼ Aviation (+¥4.0Bn):

An absence of impairment losses in FYE 3/2023(3) Credit Costs: Down ¥1.6Bn◼ Aviation (+¥5.6Bn):

A large reversal of bad debt expenses◼ Global Business (-¥4.6Bn): An increase in credit costs in the Americas, etc.

(4) Operating Expenses: Up ¥9.1Bn◼ Global Business (-¥8.2Bn): Negative effects by the reorganization of subsidiaries
in the Americas*3 (-¥2.2Bn), an increase in operating
expenses in subsidiaries in Europe and the Americas, etc.

(5) Extraordinary Income/Loss: Down ¥1.7Bn◼ Global Business (-¥7.5Bn): An absence of gains on revaluation of securities in
European subsidiaries in FYE 3/2023◼ Real Estate (+¥4.8Bn):

Extraordinary income as a result of making CPD ourwholly-owned subsidiary7III. Segment Updates

8Increase/Decrease Factors in Segment Profit (YoY)
Segment Profit
Segment Profit(Billion Yen)

Total: 63.1

(Billion Yen)

2.3

Customer
Solutions

5.5
9.1
5.4

20.6

15.2

YoY

-5.4

Major Factors for Changes in Segment Profit【 - 】 Absences of large gains on sales related to real estateleasing and non-operating income (insurance claim
income) in FYE 3/2023, and an increase in credit costs

Total: 52.7
1.6
6.9

9.8

23.6

2Q
2Q
FYE 3/2023 FYE 3/2024

GlobalBusiness

Environment& Energy*

23.6

5.4

10.2

2.6

-13.4

【 - 】 Increases in operating expenses in subsidiaries in Europe
and the Americas, and in credit costs in the Americas, andan absence of gains on revaluation of securities in Europe
in FYE 3/2023-2.7【+】 A decrease in tax expenses associated with theabsorption-type merger of subsidiaries【 - 】 Impairment losses related to a solar power generation
project and the negative effects by the reorganization ofsubsidiaries【+】 An increase in leasing revenues, an absence ofimpairment losses in FYE 3/2023, a large reversal of bad
debt expenses, and a decrease in exchange revaluation
losses related to aircraft leasing transactions owned by
MHC

7.3
2.6

Aviation

-2.7

7.3

+10.0

Logistics

9.1

9.8

+0.7 【+】 An increase in gains on sales of owned assets

10.2

20.6
15.2

-2.7
-0.8

-1.0

2Q
FYE 3/2023

2Q
FYE 3/2024【+】 An increase in gains on sales of owned assets, andextraordinary income as a result of making CPD a whollyowned subsidiary【 - 】 Losses in the real estate business in the U.S.A.

Real Estate

5.5

6.9

+1.3

Mobility

2.3

1.6-0.7 【 - 】 Negative effects by the deconsolidation of CA in FYE 3/2023

Adjustments

-0.8

-1.0

-0.2

Total

63.1

52.7

-10.4

-

* The segment name was changed due to the reorganization on April 1, 2023

9

Customer Solutions
Major Figures (Billion Yen)
2Q
FYE 3/2023

2Q
FYE 3/2024

Comments
YoY

Gross Profit

59.3

55.5

-3.7

Base Profit

56.2

55.4

-0.8

Asset-related Gain/Loss

3.1

0.1

-2.9

Recurring Income

30.3

21.1

-9.2

Segment Profit

20.6

15.2

-5.4

New Transactions Volume

434.5

463.0

+28.5

FYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

3,227.7

3,188.8-38.8

Segment Assets◼

Gross profit decreased YoY due to an absence of large
gains on sales related to real estate leasing in
FYE 3/2023, etc.

◼

Segment profit decreased YoY due to an increase in credit
costs, and an absence of non-operating income(insurance claim income) in FYE 3/2023, etc., in addition
to a decrease in gross profit.

◼

New transactions volume increased YoY thanks to the
execution of multiple large transactions, etc.

Segment Assets of Customer Solutions by Transaction Type
(2Q FYE 3/2024)
Others5.9%
Installment/Loans
15.1%
Total
3,188.8
Billion Yen

Leasing
79.0%

10

Global Business
Major Figures* (Billion Yen)
2Q
FYE 3/2023

2Q
FYE 3/2024

Comments
YoY

Gross Profit

61.4

66.5

Recurring Income

22.9

15.4

-7.5

Segment Profit

23.6

10.2

-13.4

Europe

15.2

6.8

-8.4

Americas

6.8

3.1

-3.7

China

0.5

-0.8

-1.4

ASEAN

1.2

1.5

+0.2

Others

-0.2

-0.3

-0.1

651.8

685.7

+33.8

Europe

361.5

384.6

+23.1

Americas

198.1

223.2

+25.1

China

41.0

20.7

-20.2

ASEAN

51.1

57.0

+5.8

Others---New Transactions Volume

Gross profit increased YoY thanks to the positive effects
by adjusting fiscal period associated with thereorganization of subsidiaries in the Americas, etc.

◼

Recurring income decreased YoY due to increases inoperating expenses in subsidiaries in Europe and theAmericas, and in credit costs against the backdrop of theworsening market conditions in the Americas, etc.

◼

Segment profit decreased YoY due to an absence of gains
on revaluation of securities in Europe in FYE 3/2023, etc.,
in addition to a decrease in recurring income.

+5.1

FYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

2,644.2

2,963.3+319.0Europe1,310.7

1,475.7+165.0Americas934.8

1,081.5+146.7

China

162.1

149.2

-12.8

ASEAN

234.5

251.2

+16.6

Others

2.0

5.5

+3.5

Segment Assets◼

Segment Assets of Global Business* by Region (2Q FYE 3/2024)
Others
ASEAN
0.2%
8.5%
China
5.0%

Americas
36.5%

Total
2,963.3
Billion Yen

Europe49.8%* As the figures are results for the Global Business segment, figures for overseas business in
the Aviation, Logistics, and other segments are not included

11Environment & Energy
Major Figures (Billion Yen)
2Q
FYE 3/2023

2Q
FYE 3/2024

Comments
YoY

Gross Profit
Base Profit
Asset-related Gain/Loss
Recurring Income
Segment Profit

7.4
6.0
1.3
6.0
5.4

1.7
4.9
-3.2
0.0
2.6

-5.7
-1.1
-4.5
-6.0
-2.7

New Transactions Volume

25.8

10.3

-15.4

Segment Assets
Renewable Energy Finance
Renewable Energy Business
Domestic
Overseas
OthersFYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

433.2
92.9
295.7
219.4
76.2
44.6

430.7
81.6
299.2
217.7
81.4
49.8

-2.5
-11.2
+3.4
-1.7
+5.1
+5.1

Total
Solar Power
Domestic
Overseas
Wind Power
Domestic
Overseas
Others2Q
FYE 3/2024

1,366
1,020
990
30
340
193
147
4

1,342
998
965
32
339
192
147
4

Gross profit decreased YoY due to the impairment losses
related to a solar power generation project and thenegative effects by adjusting fiscal period associated withthe reorganization of subsidiaries, etc.

◼

Segment profit decreased YoY due to a decrease in grossprofit, an absence of gains on sales of equity interests insome infrastructure projects in FYE 3/2023, etc., despite adecrease in tax expenses associated with the absorptiontype merger of subsidiaries.

Equity-owned Power Generation Capacity of Renewable Energy
Business (2Q FYE 3/2024)(1) Capacity in Operation
Others0.4%

Equity-owned Power Generation Capacity of Renewable Energy
Business in Operation*1*2 (MW)FYE 3/2023◼

Change fromFYE 3/2023
-23
-22
-24
+2
-1
-1
-

*1 Management figures*2 Equity-owned power generation capacity in domestic and overseas renewable energy business.
The output corresponds to the segment assets of the domestic renewable energy business anda part of the overseas renewable energy businessWind Power
25.3%(2) Capacity Including Projects
under Development
Others1.8%

Wind Power
30.1%

Total
1,342MW
Solar Power
74.3%

Total
1,612MW
Solar Power
68.1%

12

Aviation
Major Figures (Billion Yen)
2Q
FYE 3/2023

2Q
FYE 3/2024

Comments
YoY◼

Gross profit increased YoY thanks to an increase in leasing
revenues associated with market recovery and asset increase,an absence of the impairment losses in FYE 3/2023, etc.

◼

Segment profit increased YoY thanks to a large reversal of bad
debt expenses, a decrease in exchange revaluation losses
related to aircraft leasing transactions owned by MHC, etc., inaddition to an increase in gross profit.

◼

Segment assets increased compared with FYE 3/2023 thanks
to the execution of new leasing transactions of aircraft andengines, and the impact of exchange rates, etc.

Segment Profit

11.2
13.9
-2.7
-3.8
-2.7

18.9
17.6
1.3
10.5
7.3

+7.6
+3.6
+4.0
+14.3
+10.0

New Transactions Volume

83.0

169.5

+86.5

FYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

1,640.2
1,203.6
366.5
70.0

1,892.0
1,378.5
457.4
56.1+251.8+174.8+90.8-13.9

Gross Profit
Base Profit
Asset-related Gain /Loss
Recurring Income

Segment Assets
Aircraft Leasing (JSA)Engine Leasing (ELF)
Aircraft Leasing, etc. (MHC)

Owned Aviation-related Assets (2Q FYE 3/2024)(1) Aircraft Assets
by Type/Region

Owned Aviation-related Assets*1*2
FYE 3/2023
Number of Aircraft (JSA)
Number of Aircraft
Purchased
Number of Aircraft Sold199

2Q
FYE 3/2024
210*3

Change fromFYE 3/2023
+11

*4

13

13

-

5*3
4.9 years

2*4
5.0 years+0.1 years

Average Remaining Leasing
Term (JSA)

7.1 years

6.9 years-0.2 years

Number of Aircraft Engines
(ELF)

347

374

+27

Average Age (JSA)

*1
*2
*3
*4

(2) Aircraft Engines
by Region

Middle East & Others
6.2%

Middle East & Others
9.1%

Europe24.8% Number Americas
37.6%

Europe21.2%

Others11.0%

Numberof
Aircraft
Narrow Body*5
89.0%

of
Aircraft

Asia/Oceania
31.4%

Number Americasof
44.0%
Engines

Asia/Oceania
25.7%*5 Single-aisle aircraft mainly used for domestic and short-distance flights(A320 series by Airbus, B737 series by Boeing, etc.)

Management figures
Figures before consolidation adjustments
Actual number for FYE 3/2023
Actual number for 2Q FYE 3/2024

13

Logistics
Major Figures (Billion Yen)
2Q
FYE 3/2023

2Q
FYE 3/2024

Comments
YoY

Gross Profit

17.4

18.6

+1.2

Base Profit

15.8

15.0

-0.7

Asset-related Gain/Loss

1.5

3.5

+1.9

Recurring Income

11.6

12.6

+0.9

Segment Profit

9.1

9.8

+0.7

New Transactions Volume

35.5

11.2

-24.3

FYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

1,092.9

1,145.0+52.1

Marine Containers

793.0

826.5

+33.5

Railway Freight Cars

256.8

284.7

+27.8

Shipping

43.0

33.7

-9.2

Segment Assets◼

Segment profit increased YoY thanks to an increase ingains on sales of owned assets (mainly shipping), etc.

◼

New transactions volume decreased YoY due to the
execution of new investments being temporarily
suppressed considering the market conditions.

◼

Segment assets increased compared with FYE 3/2023
thanks to the impact of exchange rates despite adecrease in new transactions volume, and the sale ofshipping assets.

Marine Container Fleet by Asset Type (2Q FYE 3/2024)
Special Container
4.9%

Owned Logistics-related Assets*1
FYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

Marine Container Fleet(TEU 1,000*2)

3,412

3,306

-105

Marine Container Fleet(CEU 1,000*3)

3,610

3,475

-135

Number ofRailway Freight Cars

22,654

22,480-174*1 Management figures*2 TEU: Twenty-foot equivalent unit (unit equivalent to the capacity of a 20-feet long container)*3 CEU: Cost equivalent unit (conversion unit for the total average historical prices of various
containers owned, calculated on the basis of 1 CEU = average historical price of a
newly built 20-feet dry container)

ReeferContainer
18.9%

3,475KCEU
Dry Container
76.2%

14

Real Estate
Major Figures (Billion Yen)
2Q
FYE 3/2023

2Q
FYE 3/2024

Comments
YoY

Gross Profit

14.8

10.2

-4.5

Base Profit

7.2

0.8

-6.4

Asset-related Gain/Loss

7.5

9.4

+1.9

Recurring Income

8.4

6.9

-1.5

Segment Profit

5.5

6.9

+1.3

New Transactions Volume

33.8

70.3

+36.4

FYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

Segment Assets

447.2

504.1

+56.8

Domestic

384.6*1

431.7

+47.1

Finance Business155.4*1

155.3

-0.1

Investment Business157.1*1

201.4

+44.2

Gross profit decreased YoY due to the fair value losses*2
against the backdrop of worsening conditions in real estatemarket in the U.S.A., negative impact of the deconsolidation of
DAF, etc., despite an increase in gains on sales of owned
assets.

◼

Segment profit increased YoY thanks to an absence of large
credit costs in FYE 3/2023, and the extraordinary income as aresult of making CPD our wholly-owned subsidiary, etc.

◼

Segment assets increased compared with FYE 3/2023 thanks
to making CPD our wholly-owned subsidiary, executing largetransactions in the investment business, etc.

Domestic Segment Assets (2Q FYE 3/2024)(1) By Type of Assets

71.9

74.9

+2.9

Overseas(Finance Business Only)

59.1*1

54.7-4.4

Others

3.4*1

17.7

+14.2

Rental Business◼

OthersResidence 3.5%
7.0%
Commercial
Facility
13.2%
Total
431.7
Logistics Billion Yen

15.7%*1 Corrected some figures from the previous year due to changes of definition(1) The category of overseas transactions (3.7 billion yen) booked at the Head Office waschanged from “Domestic (Finance Business)” to “Overseas”(2) The category of equity method investments for operating companies (1.1 billion yen) was changed from
“Investment Business” to “Others”
Domestic: 389.4 ⇒384.6 (-4.8), Domestic (Finance Business): 159.2⇒155.4 (-3.7),
Investment Business: 158.2 ⇒ 157.1 (-1.1), Overseas: 55.4⇒59.1 (+3.7), Others: 2.3 ⇒ 3.4 (+1.1)*2 The losses are not included in asset-related gain/loss as those are fair value losses related toinvestees and borrowers and are not impairment losses (refer to page 1 for details of asset-related gain/loss)

Hotel
19.0%

(2) By Region

NagoyaMetropolitan
District10.0%

Office
41.6%

Osaka
Metropolitan
District19.1%

Others
9.0%

Total
431.7
Billion Yen
Tokyo
Metropolitan
District
61.9%

15

Mobility
Major Figures (Billion Yen)
2Q
FYE 3/2023

Gross Profit

2Q
FYE 3/2024

4.7

0.5

Comments
YoY

2.8

1.5

-1.3

Segment Profit

2.3

1.6

-0.7

New Transactions Volume

13.6

3.0

-10.5

Segment Assets

2Q
FYE 3/2024

41.4

43.1

Each profit item decreased YoY due to the negative
effects of the deconsolidation of CA associated with thereorganization of subsidiaries, etc.

◼

New transactions volume decreased YoY due to thedeconsolidation of CA, etc.

-4.2

Recurring Income

FYE 3/2023◼

Change fromFYE 3/2023+1.7

Number of Operational Vehicles*1 (Unit: 1,000)
FYE 3/2023
Number of Operational
Vehicles*2

355

2Q
FYE 3/2024
351

Change fromFYE 3/2023-4*1 Management figures*2 Including the number of operational vehicles of equity-method affiliates

16IV. Financial Forecast for FYE 3/2024

17

Financial Forecast for FYE 3/2024◼

The progress made toward the full-year financial forecast (net income: 120.0 billion yen) during 2Q FYE 3/2024 was 43.9%, mainly due
to the losses in the Real Estate business in the U.S.A. and the impairment losses in the Environment & Energy business, etc., whichwere not included in the initial plan.

◼

Despite the progress, the full-year financial forecast remains unchanged, because the net income in the Aviation business is planned to
be weighted toward the second half and we expect marine container leasing business continues to progress favorably compared with
the initial plan, and gains on sales of owned assets will exceed the initial plan.
FYE 3/2023

FYE 3/2024*1*2

YoY Change(%)

1

Net Income (Billion Yen)

116.2

120.0

+3.7
(+3.2%)

2

ROA

1.1%

1.1%

-

3

ROE

8.2%

7.8%

-0.4pt4

Dividend per Share〈Payout Ratio〉¥33〈40.8%〉¥37〈44.3%〉+¥4〈+3.5pt〉*1 Financial forecast as of November 10, 2023
*2 The assumed foreign exchange rates are $1=¥130, £1=¥160

18

Dividend Forecast for FYE 3/2024◼

We will return profits to shareholders by distributing dividends and increase the total amount of dividend payments through profit growth.
The payout ratio during the 2025 MTMP is targeted to be 40% or more. The annual dividend per share for FYE 3/2024 is forecasted to
be 37 yen, up 4 yen YoY.

◼

The interim dividend increased by 3 yen YoY to 18 yen.

Transition of Dividend

57.4%
44.3%
41.1% 40.4% 40.8%
37.0
30.4%

31.5%

25.2%
20.7%

PayoutRatio*

17.4% 15.5%

18.9% 19.2% 20.0%

21.8%

16.0%

11.1%
33.0
Dividend per Share*
(Yen)

4.2

23.5
18.0

4.6

4.8

5.0

6.0

6.5

8.0

9.5

12.3

25.0

25.5

28.0
18.0

13.0

FYE 3/2008 FYE 3/2009 FYE 3/2010 FYE 3/2011 FYE 3/2012 FYE 3/2013 FYE 3/2014 FYE 3/2015 FYE 3/2016 FYE 3/2017 FYE 3/2018 FYE 3/2019 FYE 3/2020 FYE 3/2021 FYE 3/2022 FYE 3/2023 FYE 3/2024(forecast)* MUL’s results from FYE 3/2008 to FYE 3/2021

19

V. Progress of the Medium-term Management Plan

20

Progress of the Medium-term Management Plan (1)(Business Portfolio Transformation)
Evolution and Layering of Business Models

Portfolio Management◼ Promoting the evolution and layering of business models
toward the realization of business portfolio transformation(refer to page 27 for details).
◼ We are aiming at reducing low-profitability assets and increasing
profitability and capital efficiency in business types ① and ②,
and are focusing on business types ③, ④ and ⑤ as the pillar of
profit growth.

◼ Toward Our 10-year Vision, we are proceeding with the replacingof our portfolio through strategic allocation of management
resources and the optimization of business operations within theGroup.

HSE*1 has begun renewable energy
aggregation business*2

Business type ⑤✓ HSE, which is engaged in the renewable energy power
generation business, has begun its renewable energy
aggregation business, where it makes quantitative renewableenergy power generation estimates and creates power
generation plans, and offers electricity and non-fossil value*3
in light of these (begun in March 2023).

March 2023
Completed share transfer of Diamond Asset Finance, acompany whose main business domain was inresidential real estate-related financing
April 2023
Made CenterPoint Development a wholly-owned
subsidiary toward strengthening and expanding logistics
facilities-related business

October 2023
Announced the end of personal credit card business(planned to end at the end of March 2024)
November 2023
Concluded contract for share transfer of DFL Lease andShutoken Leasing (transfer planned in January 2024)“Yokohama-machi Hibaritaira Wind Power Plant” (Aomori Pref.)*1 A consolidated subsidiary which is engaged in renewable energy power generation business (wind power generation)*2 Businesses which manage the supply of electricity generated at power plants and the control of supply-demandbalance, and operators of such businesses*3 Non-fossil value refers to the value of electricity generated using methods that do not emit carbon dioxide
Non-fossil certificates are issued for the environmental value of electricity generated using non-fossil fuels such as
renewable energy

21Progress of the Medium-term Management Plan (2)(Key Themes across Segments)◼ Toward Our 10-year Vision, we have defined themes to be addressed with the concerted efforts of our Group across segments.
◼ Established four areas—hydrogen, EVs, logistics, and decarbonization solutions—and, we will contribute to a prosperous and sustainable
future by creating social value through solving social issues originating from these four key themes with partners, not by our Group alone.
Began offering integrated services introducing EVs to companies

Began providing solar power generation self-consignment*1services✓ Mitsubishi HC Capital Energy and Mitsubishi Auto Leasing have begun
offering EVs and EV charging infrastructure, as well as essential integrated
services for EV introduction and operation including the supply of renewableenergy that serves as the power source for EVs.

✓ Through RenetS, a joint venture with REZIL (formerly Chuo Electric Power),
we began offering solar power generation self-consignment*1 services tothe MinebeaMitsumi Group.

✓ They are contributing to the introduction of EVs to businesses and the
reduction of CO2 emissions by offering integrated services which introduce
and operate EVs and charging equipment, and provide parking areas wherethese can be installed, as well as renewable energy, with no initial costs.

✓ From June to July 2023, the MinebeaMitsumi Group began using electricity
generated using non-FIT*2 low-voltage solar power generation at five of its
offices and plants in the Kanto area, contributing to the reduction of CO2
emissions (approx. 1,755t per year) at the MinebeaMitsumi Group.
An Idea of Self-Consignment
MinebeaMitsumi Group solar
power generation plant

Supply electricity
Supply of electricity tobusiness sites andplants in the GroupUse of transmission
and distribution network“Jikotaku” Support self-consignment support service

Our operating vehicle that was introduced
through utilizing the integrated service.

RenetS
Facility management

Asset holding(EPC、O&M)(No initial cost, pay-per-use)

Operation(Procedures support,
submission of plans)

Risk management(Power generation volume
predictions, imbalance control)*1 The utilization of power distribution networks owned by power distribution business operators to provide electricity
generated by a company’s own facilities to facilities, etc. in other regions*2 Electricity sourced from renewables which does not depend on feed-in tariffs.

22

Progress of the Medium-term Management Plan (3)(Frameworks to Promote Transformation)
Creating and operating the Innovation Investment Fund,worth a total of 10 billion yen

Launching the Zero-Gravity Venture Lab, an internal
startup program✓ With the aim of generating new services and promoting thedevelopment of new businesses through open innovation withstartups initiated through investments, we have established theInnovation Investment Fund, and investments have begun.

✓ The Zero-Gravity Venture Lab (called “ZERO-GRA”), an internal
startup program launched in November 2022 as frameworks for
actively generating initiatives to contribute to transformations.

✓ The investment period will cover three years from April 2023, withthe fund being worth a total of 10 billion yen. To date, investments
have been made in the following three companies.
1st transaction

Main Business
DX promoting business for hotels

2nd transaction

Main Business✓ Following the initial presentations (35 programs/52 applicants)
and secondary presentations (20 programs who passed initialpresentations), the final presentations (4 programs) are planned inlate November.

3rd transaction

Main Business

Reduction of food loss andCO2 emission business

DX promoting businessfor financial companies

Starting business activity in Silicon Valley✓ Toward the promotion of the business strategies, including the key
themes to be addressed across segments, set forth in the 2025
MTMP, we started business activity in Silicon Valley, aiming tostrengthen our business intelligence functions as part ofinnovation initiatives and promote digital transformation with theutilization of digital technologies.

Secondary Presentations conducted in September 2023

23

VI. Appendix

24

Management Plan (Financial Targets)
Financial
Targets(end of FY2025)

Dividend
Policy(2025 MTMP
period)Financial
Soundness

Net income: JPY160.0Bn

ROA*2: Approx. 1.5%

ROE*2: Approx. 10%(CAGR*1 vs. FY2022:+11.2%)(vs. FY2022:
Approx. +0.4pts)(vs. FY2022:
Approx. +1.8pts)

Payout ratio:
40% or higher⚫

As a general rule, return profits toshareholders by paying dividends.

⚫

Sustainably increase the total amount ofdividend payment through profit growth.

⚫

Establish both a sound financial base and an
active investment strategy.

⚫

Maintain current stand-alone ratings.

Maintain A ratings(2025 MTMP
period)Exchange rates: (FY2022) USD1=JPY131.43, GBP1=JPY163.15(FY2025) USD1=JPY130, GBP1=JPY160*1 CAGR: Compound Annual Growth Rate
*2 Net income attributable to owners of parent is used for the calculation of ROA and ROE
25

Management Plan (Non-financial Targets)
CapitalNon-Financial Targets

Human
CapitalIntellectual
CapitalManufacturing
CapitalNaturalCapitalSocial and
Relation
CapitalKPI

Targets (2025 MTMP)

Level of fulfillmentof a talent portfolio in linewith our management strategies

Formulate the talent portfolio frameworkand visualize the level of fulfillment

Results of the employee
engagement survey

Refine the survey content and enhance analysis

Number of new DX-related
businesses and products
Operational efficiency

Develop a base for DX frameworks(develop and acquire DX talent,system investment, etc.)

Ratio of female managers

20% or more

Rate of annual paid holidays
taken by employees

70% or more

Monthly average overtime hours

14 hours or less

Ratio of taking childcare
and maternity leave100%

GHG*1 emissions amount(Scope 3)

Analyze the categories which have a major
impact and visualize Scope 3 emissions*2

GHG emissions amount(Scope 1, 2)-55% in FY2030 vs. FY2019
and net zero*2 in FY2050

Energy consumption (domestic)-1% YoY continually*1 GHG: Green House Gas*2 Consolidated basis target (other targets are MHC basis)
26

Business Strategies(for the Evolution and Layering of Business Models)◼

We will proceed with the evolution and layering of business models in order to achieve business portfolio transformation.
Business Type

Business Characteristics

Direction

ExamplesAssetutilization
business

Promote business investment
utilizing assets, aiming tomaximize revenue from thosebusinesses

Risks and returns are relatively higher
than ① and ②, so we will increase thesize of asset utilization business in aphased manner in consideration of risk
capital, etc.

• Non-FIT renewableenergy businesses• Real estate revitalizationand development
investment

Evolution and Layering of Business Models

⑤

④

③

②

①

ReturnMedium risk andmedium returnDatautilization
platform
services

Utilize data to develop platformbusinesses, and mainly acquire
service revenue

The initiative for this business is difficult
and will take time to generate profits.
However, it will help differentiate MHC
from competitors, so we will actively
plant seeds for this domain• Inventory optimization
services utilizing data
• Sharing services utilizing
data

Finance +services

Add maintenance services, AM*,etc. mainly to ②, and acquire
service revenue as well as
income gain and capital gain

Promote the shift mainly from ② (addservices) to increase profitability• Operating leases withmaintenance services• Service solutions suchas asset management

Asset
finance

Investment and lending mainly in
specific marketable general
purpose assets backed by thevalue of business assets. Capitalgain as well as income gain canbe acquired

A profit base which generates stable cash
flows. However, some assets haverelatively low risk but yield low returns, so
we aim to increase profitability by
reducing low-profitability assets andevolving into an O&D business• Operating leases• Real estate
securitization

Acquire income gain morestably and continuously throughcorporate financing

Same as ②. However, risks and returnsof this business are both lower than ②, so
we will take drastic action to increase
profitability (accelerating the reduction of
low-profitability assets, promoting
efficiency improvement, etc.)• Finance leases• Vendor leases• Installment sales• Lending

Customerfinance

Risk

Low risk andlow return* AM: Asset Management27

Transition of Major Figures◼

Mid-term management plan (“2025 MTMP”) covering the three-year period from FYE 3/2024 was formulated andannounced on May 2023.

◼

Financial targets at the final fiscal year of 2025 MTMP (FYE 3/2026) are net income of 160.0 billion yen,
ROA of approx. 1.5%, and ROE of approx. 10%.

Transition of Net Income*1 and ROE*1

8.8%

approx.10%

9.1%

8.9%
8.0%

7.3%

8.2%

8.0%

7.8%

ROE*1
Net Income*1(Billion Yen)

86.0

95.7

88.1

101.4

87.3

99.4

FYE 3/2017

FYE 3/2018

FYE 3/2019

FYE 3/2020

FYE 3/2021

FYE 3/2022

116.2

120.0

FYE 3/2023

FYE 3/2024(Forecast)

FYE 3/2017 FYE 3/2018 FYE 3/2019 FYE 3/2020 FYE 3/2021 FYE 3/2022 FYE 3/2023 FYE 3/2024*3

CAGR+11.2%

160.0(Compared to
FYE 3/2023)･･･

FYE 3/2026(Final Fiscal
Year of MTMP)

YoY(Change)

FYE 3/2026(Final Fiscal Yearof MTMP)1

Net Income*1 (Bn Yen)

86.0

95.7

88.1

101.4

87.3

99.4

116.2

120.0

+3.7

160.0

2

ROA*1

1.0%

1.1%

1.0%

1.0%

0.9%

1.0%

1.1%

1.1%

-

Approx. 1.5%

3

ROE*1

8.8%

9.1%

8.0%

8.9%

7.3%

8.0%

8.2%

7.8%

-0.4ptApprox. 10%

4

Dividend per Share*2

¥13.0

¥18.0

¥23.5

¥25.0

¥25.5

¥28.0

¥33.0

¥37.0

+¥4.0

-

5

Payout Ratio*2

21.8%

25.2%

30.4%

31.5%

41.1%

40.4%

40.8%

44.3%

+3.5ptMore than 40%*1 Figures for FYE 3/2017 to FYE 3/2021 are simple sums of MUL’s (net income attributable to owners of the parent under
J-GAAP) and HC’s (net income attributable to owners of the parent under IFRS)*2 MUL’s results from FYE 3/2017 to FYE 3/2021*3 The assumed foreign exchange rates for FYE 3/2024 are $1=¥130, £1=¥160

28

Effects by Adjusting Fiscal Period Associated withReorganization of Subsidiaries◼ On April 1, 2023, our Group companies in the U.S.A., Mitsubishi HC Capital America, Inc. (“MHCA”), Mitsubishi
HC Capital (U.S.A.) Inc. (“MHCUSA”), and ENGS Commercial Finance Co. (“ENGS”), were integrated, with
MHCA being the surviving company.

◼ On the same day, our Group companies engaged in the solar power generation business, etc., Mitsubishi HC
Capital Energy Inc. (“Energy”) and HGE Ltd. (“HGE”), were integrated, with Energy being the surviving company.
◼ The effects of these mergers in FYE 3/2024 are as follows.
Merged on April 1
2022
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

2023
Aug. Sep.

Oct.

Nov. Dec.

Jan.

Feb.

Mar.

Apr.

FYE 3/2023

May

Jun.

FYE 3/2024

YoY Impact on PL

MHCA(FYE: March)

1Q

2Q

3Q

1 Effect of profit increase

4Q
MHCA

Former
MHCUSA andENGS(FYE: December)

FYE 3/2023
1Q

2Q

3Q

1Q

1 1Q

4Q

FYE 3/2023

FYE 3/2024

Energy(FYE: January)(FYE: March)

FYE 3/2024

Energy
1Q

2Q

3Q

4Q

(FYE: January)

2 Cause of profit decrease

1Q
FYE 3/2023

2

Former HGE(FYE: March)

1Q

2Q

3Q

4Q

Financial results of theformer MHCUSA and ENGS
for the period from January
to March 2023 (threemonths) were incorporated
in addition to the results of
MHCA for the period from
April to June 2023 (threemonths) after the merger ofthree companies.

As for the former HGE, thefinancial results for April
2023 (one month) only wereincorporated.

29

Segment Profit (1) (by Quarter)FYE 3/2023(Billion Yen)
1
2
3

Customer
Solutions

1Q

FYE 3/2024
2Q

1Q

2Q

QoQ

YoY

Gross Profit

31.2

28.0

27.8

27.7

0.0

-0.3

Base Profit

28.5

27.6

27.7

27.7

0.0

0.0

Asset-related Gain/Loss

2.6

0.4

0.1

0.0

0.0

-0.3

4

Recurring Income

16.7

13.5

11.3

9.7

-1.6

-3.8

5

Segment Profit

11.2

9.3

8.2

7.0

-1.1

-2.3

6

Gross Profit

31.2

30.2

33.9

32.6

-1.2

+2.4

Recurring Income

12.6

10.2

7.0

8.3

+1.2

-1.8

8

Segment Profit

10.2

13.3

4.0

6.1

+2.1

-7.2

9

Gross Profit

3.2

4.1

1.8

-0.1

-1.9

-4.2

10

Base Profit

2.4

3.6

1.8

3.0

+1.2

-0.5

Asset-related Gain/Loss

0.8

0.5

0.0

-3.2

-3.2

-3.7

7

11

GlobalBusiness

Environment& Energy

12

Recurring Income

2.6

3.4

0.6

-0.6

-1.2

-4.0

13

Segment Profit

1.9

3.5

2.6

0.0

-2.7

-3.5

14

Gross Profit

6.7

4.5

9.0

9.8

+0.7

+5.2

15

Base Profit

6.0

7.9

8.0

9.5

+1.4

+1.5

Asset-related Gain/Loss

0.6

-3.4

1.0

0.2

-0.7

+3.7

16

Aviation

17

Recurring Income

-1.2

-2.5

2.8

7.6

+4.7

+10.2

18

Segment Profit

-0.9

-1.8

2.3

4.9

+2.5

+6.7

30

Segment Profit (2) (by Quarter)FYE 3/2023(Billion Yen)

1Q

FYE 3/2024
2Q

1Q

2Q

QoQ

YoY

19

Gross Profit

8.5

8.8

9.5

9.0

-0.5

+0.2

20

Base Profit

7.3

8.4

7.5

7.4

-0.1

-1.0

Asset-related Gain/Loss

1.2

0.3

1.9

1.5

-0.3

+1.2

21

Logistics

22

Recurring Income

5.8

5.8

6.6

5.9

-0.7

+0.1

23

Segment Profit

4.6

4.5

5.4

4.4

-0.9

0.0

24

Gross Profit

8.1

6.6

9.8

0.3

-9.4

-6.2

25

Base Profit

3.8

3.3

3.0

-2.2

-5.3

-5.6

Asset-related Gain/Loss

4.2

3.2

6.7

2.6

-4.1

-0.5

26

Real Estate

27

Recurring Income

4.1

4.2

8.5

-1.6

-10.1

-5.8

28

Segment Profit

2.6

2.8

11.7

-4.8

-16.5

-7.7

29

Gross Profit

2.5

2.2

0.3

0.2

0.0

-1.9

Recurring Income

1.6

1.1

0.8

0.6

-0.2

-0.5

31

Segment Profit

1.3

1.0

0.8

0.7

-0.1

-0.3

32

Gross Profit

1.4

0.0

2.1

0.6

-1.5

+0.6

Recurring Income

-0.5

-2.2

-0.3

-0.9

-0.6

+1.2

34

Segment Profit

0.8

-1.6

-0.2

-0.7

-0.5

+0.9

35

Gross Profit

93.2

84.6

94.6

80.3

-14.2

-4.2

36

Base Profit

83.5

83.5

84.7

78.9

-5.7

-4.5

Asset-related Gain/Loss

9.7

1.1

9.9

1.4

-8.4

+0.2

30

33

37

Mobility

Adjustments

Total

38

Recurring Income

41.9

33.8

37.7

29.1

-8.5

-4.6

39

Segment Profit

32.0

31.1

35.1

17.6

-17.4

-13.4

31

Asset-related Gain/Loss（by Quarter）
FYE 3/2023(Billion Yen)
1

Customer Solutions

1Q

FYE 3/2024
2Q

1Q

2Q

QoQ

YoY

2.6

0.4

0.1

0.0

0.0

-0.3

2

Gain/Loss on Sales

2.6

0.4

0.1

0.0

0.0

-0.3

3

Impairment Losses

-

-

-

-

-

-

4

Environment & Energy

0.8

0.5

0.0

-3.2

-3.2

-3.7

5

Gain/Loss on Sales

0.8

0.5

0.0

2.6

+2.5

+2.0

6

Impairment Losses

-

-

-

-5.8

-5.8

-5.8

0.6

-3.4

1.0

0.2

-0.7

+3.7

7

Aviation

8

Gain/Loss on Sales

0.6

0.6

1.0

0.2

-0.7

-0.3

9

Impairment Losses

-

-4.0

-

-

-

+4.0

1.2

0.3

1.9

1.5

-0.3

+1.2

10

Logistics

11

Gain/Loss on Sales

1.2

0.3

1.9

1.5

-0.3

+1.2

12

Impairment Losses

-

-

-

-

-

-

4.2

3.2

6.7

2.6

-4.1

-0.5

13

Real Estate

14

Gain/Loss on Sales

4.2

3.2

6.7

2.6

-4.1

-0.5

15

Impairment Losses

-

-

-

-

-

-

9.7

1.1

9.9

1.4

-8.4

+0.2

16

Total Asset-related Gain/Loss

17

Gain/Loss on Sales

9.7

5.2

9.9

7.2

-2.6

+2.0

18

Impairment Losses

-

-4.0

-

-5.8

-5.8

-1.7

(Note) Based on gross profit

32Notes by Segment (excl. Asset-related Gain/Loss)
2Q
FYE 3/2023
1

2

Customer Solutions

1Q： +【 +】 Non-operating income in a certain deal (insurance claim
income): approx. JPY1.0Bn

Global Business

2Q： 【 +】 Gains on revaluations of securities due to the exclusion ofa European subsidiary from the scope of the equity
method: approx. JPY7.0Bn+

3

Environment &Energy4

Aviation

5

Logistics

1Q： 【 +】 An increase in profit from equity method investment in a+wind power generation project in Europe: approx.
JPY1.0Bn

Real Estate

7

Mobility

8

Adjustments+
1Q： 【 +】 Positive effects by reorganization of subsidiaries in theAmericas: approx. JPY1.0Bn【 - 】 Credit costs in line with the worsening market conditions in
the Americas: approx. JPY2.0Bn
1Q： 【 +】 A decrease in tax expenses associated with theabsorption-type merger of subsidiaries*: approx. JPY2.0Bn-

2Q： +【 +】 Gains on sales of equity interests in some projects ininfrastructure business: approx. JPY2.0Bn
1Q： 【 - 】 Exchange revaluation losses related to leasing transactions 1Q： 【 - 】 Exchange revaluation losses related to leasing transactionsof aircraft owned by MHC: approx. JPY3.5Bnof aircraft owned by MHC: approx. JPY1.5Bn+
2Q： 【 - 】 Exchange revaluation losses related to leasing transactions 2Q： 【-+】 A large reversal of bad debt expenses: approx. JPY4.0Bnof aircraft owned by MHC: approx. JPY3.0Bn【 - 】 Exchange revaluation losses related to leasing transactionsof aircraft owned by MHC: approx. JPY2.5Bn
1Q： 【 - 】 Large credit costs: approx. JPY2.0Bn

6

2Q
FYE 3/2024(Note) Based on figures before tax, but figures with “*” include taxes.

+
1Q： 【 +】 Extraordinary income as a result of making CPD a whollyowned subsidiary*: approx. JPY4.8Bn
2Q： 【 - 】 Losses in the real estate business in the U.S.A.*: approx.
JPY5.5Bn
An increase in tax expenses*: approx. JPY1.5Bn+
1Q： 【 +】 Positive effects by reorganization of subsidiaries in theAmericas: approx. JPY1.5Bn(Note) Based on figures before taxes, but figures with “*” are after taxes.

33

Segment Assets(Billion Yen)
1
2
3

Customer Solutions
Percentage of Total
Global Business

FYE 3/2022

FYE 3/2023

2Q
FYE 3/2024

Change fromFYE 3/2023

3,337.6

3,227.7

3,188.8

-38.8

35.7%

33.5%

31.2%

-2.3pt2,316.3

2,644.2

2,963.3+319.04

Percentage of Total

24.8%

27.5%

29.0%

+1.5pt5

Environment & Energy

419.3

433.2

430.7

-2.5

6

Percentage of Total

4.5%

4.5%

4.2%

-0.3pt1,365.1

1,640.2

1,892.0+251.8

14.6%

17.0%

18.5%

+1.5pt

1,026.7

1,092.9

1,145.0

+52.1

11.0%

11.4%

11.2%

-0.2pt

712.7

447.2

504.1

+56.8

7.6%

4.6%

5.0%

+0.4pt

129.4

41.4

43.1

+1.7

1.4%

0.4%

0.4%

0.0pt

37.9

105.8

52.9

-52.8

7
8
9
10
11
12
13
14
15

Aviation
Percentage of Total
Logistics
Percentage of Total
Real Estate
Percentage of Total
Mobility
Percentage of Total
Adjustments

16

Percentage of Total

0.4%

1.1%

0.5%

-0.6pt17

Total Segment Assets

9,345.3

9,632.9

10,220.3+587.334

New Transactions Volume by Segment(Billion Yen)

2Q
FYE 3/2023

2Q
FYE 3/2024

YoY Change

YoY Change (%)

1

Customer Solutions

434.5

463.0

+28.5

+6.6%

2

Global Business

651.8

685.7

+33.8

+5.2%

3

Environment & Energy

25.8

10.3

-15.4

-59.7%

4

Aviation

83.0

169.5

+86.5

+104.3%

5

Logistics

35.5

11.2

-24.3

-68.4%

6

Real Estate

33.8

70.3

+36.4

+107.7%

7

Mobility

13.6

3.0

-10.5

-77.4%

8

Total New Transactions
Volume1,278.4

1,413.3+134.9+10.6%

35

Credit Costs by Segment(Billion Yen)

2Q
FYE 3/2023

2Q
FYE 3/2024

YoY Change

1

Customer Solutions

-0.6

1.9

+2.6

2

Global Business

2.1

6.8

+4.6

3

Environment & Energy

1.0

0.1

-0.9

4

Aviation

1.4

-4.1

-5.6

5

Logistics

0.0

0.0

0.0

6

Real Estate

2.3

0.0

-2.3

7

Mobility

0.0

0.0

0.0

8

Adjustments

0.0

0.0

0.0

9

Total Credit Costs

6.4

4.7

-1.6

36

Financial Performance: Profit & Loss Statement(Million Yen)
1

Revenues

2

Cost of Revenues

3

Cost of Funds

4

Gross Profit

5

SG&A Expenses

6

Personnel Expenses

7

Non-personnel Expenses

8

Allowance

9

Operating Income

10

Recurring Income

11

Extraordinary Income

12

Extraordinary Loss13

Net Income Attributable to
Owners of the Parent

2Q
FYE 3/2021*

2Q
FYE 3/2022

827,064
682,508
48,519144,556
97,76445,51540,38911,85946,791
50,3865,590
736,905-

833,358+0.8%
672,183-1.5%
37,717-22.3%
161,175+11.5%
103,024+5.4%
47,914+5.3%
40,655+0.7%
14,453+21.9%
58,151+24.3%
59,089+17.3%
27,274+387.9%229+2,989.7%
60,482+63.9%2Q
FYE 3/2023
944,732+13.4%
766,790+14.1%
57,683+52.9%
177,941+10.4%
103,802+0.8%
54,176+13.1%
41,390+1.8%
8,235-43.0%
74,139+27.5%
75,771+28.2%
9,060-66.8%
370+61.4%
63,176+4.5%

2Q
FYE 3/2024
942,519-0.2%
767,485+0.1%
97,013+68.2%
175,034-1.6%
110,619+6.6%
59,351+9.6%
45,338+9.5%
5,930-28.0%
64,414-13.1%
66,915-11.7%
7,299-19.4%
368-0.5%
52,739-16.5%(Note) Percentage figures (%) in the lower column are YoY* Figures for FYE 3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis)converted into J-GAAP basis in a simplified manner, and are presented as reference values

37

Financial Performance: Balance Sheet, etc.
(Million Yen)
1

Cash and Cash Equivalents

2

Total Equity

3

Total Assets

4

Segment Assets

5

Operating Assets

6

Equity Method
Investments

7

Goodwill, Investment
Securities, etc.

8

Impaired Assets

9

Allowance

10

Net Balance of Impaired
Assets11

Equity Ratio

12

ROE

13

ROA

FYE 3/2021*(end-Mar. 2021)

FYE 3/2022(end-Mar. 2022)

FYE 3/2023(end-Mar. 2023)

2Q FYE 3/2024(end-Sep. 2023)

603,3211,250,216
9,730,027
8,604,876
8,259,624
140,291
204,960
95,54358,06637,476
12.5%-

540,942-10.3%
1,333,467+6.7%
10,328,872+6.2%
9,345,376+8.6%
9,058,273+9.7%
142,469+1.6%
144,633-29.4%
108,188+13.2%
76,791+32.2%
31,397-16.2%
12.7%+0.2pt8.0%
1.0%-589,688+9.0%
1,551,029+16.3%
10,726,196+3.8%
9,632,966+3.1%
9,311,185+2.8%
163,109+14.5%
158,670+9.7%
99,912-7.6%
68,806-10.4%
31,106-0.9%
14.3%+1.6pt8.2%+0.2pt1.1%+0.1pt

517,414-12.3%
1,686,108+8.7%
11,291,007+5.3%
10,220,315+6.1%
9,873,813+6.0%
178,291+9.3%
168,210+6.0%
105,735+5.8%
66,862-2.8%
38,872+25.0%
14.7%+0.4pt6.6%-1.6pt1.0%-0.1pt(Note) Percentage figures (%) in the lower column are vs. end of the previous fiscal year
* Figures for FYE 3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis)converted into J-GAAP basis in a simplified manner, and are presented as reference values

38

Financial Performance: Balance Sheet, etc. (Cont’d)(Million Yen)
14

Total Funding

15

Indirect Funding

16

Direct Funding

17

CP

18

Securitization

19

Corporate Bonds

20

Direct Funding Ratio

21

Long-Term Funding Ratio

22

Foreign Currency Funding
Ratio

FYE 3/2021*1(end-Mar. 2021)

FYE 3/2022(end-Mar. 2022)

FYE 3/2023(end-Mar. 2023)

2Q FYE 3/2024(end-Sep. 2023)

7,633,836
4,193,928
3,439,908
643,812584,565
2,211,530-

8,066,082+5.7%
4,515,103+7.7%3,550,978+3.2%
682,593+6.0%
604,493+3.4%
2,263,891+2.4%

8,236,106+2.1%
4,846,586+7.3%
3,389,520-4.5%
559,485-18.0%
604,3020.0%
2,225,731-1.7%

8,656,546+5.1%
5,031,296+3.8%
3,625,250+7.0%
747,283+33.6%
575,227-4.8%
2,302,739
+3.5%

45.1%
81.5%
43.1%
-

44.0%
-1.1pt81.1%-0.4pt49.4%+6.3pt41.2%-2.8pt82.5%+1.4pt56.3%+6.9pt41.9%+0.7pt82.2%-0.3pt59.2%+2.9pt(Note) Percentage figures (%) in the lower column are vs. end of the previous fiscal year
*1 Figures for FYE 3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis in a simplified manner, and are presented as reference values

Exchange Rate Applied to Financial Results of Major Overseas Subsidiaries*2
Major Overseas Subsidiaries withFY Ending in December

Major Overseas Subsidiaries with FY Ending in March

2Q FYE 3/2023*3

2Q FYE 3/2024

2Q FYE 3/2023*3

2Q FYE 3/2024

23

Exchange Rate Applied to PL$1＝JPY122.89$1＝JPY134.85£1＝JPY162.89$1＝JPY133.97£1＝JPY177.49$1＝JPY141.00

24

Exchange Rate Applied to BS$1＝JPY132.70$1＝JPY144.99£1＝JPY165.56$1＝JPY133.53£1＝JPY182.53$1＝JPY149.58*2 Major overseas subsidiaries with⇒ Average exchange rates from January through June applied to PL
FY ending in December
FYE 3/2023 BS: exchange rate as of end-Dec. 2022 is applied
2Q FYE 3/2024 BS: exchange rate as of end-Jun. 2023 is applied
Major overseas subsidiaries with⇒ Average exchange rates from April through September applied to PL
FY ending in MarchFYE 3/2023 BS: exchange rate as of end-Mar. 2023 is applied
2Q FYE 3/2024 BS: exchange rate as of end-Sep. 2023 is applied*3 Exchange rates applied to BS are as of FYE 3/2023

39

Inquiries

Corporate Communications Department
I

Inquiries
TEL： +81 3-6865-3002

II

Websitehttps://www.mitsubishi-hc-capital.com/english/

40