Financial Results for the Fiscal Year Ended March 31, 2022
Mitsubishi HC Capital Inc.

May 16, 2022

Index◇ Highlights
I.

Financial Results for FYE3/2022

II. Segment Updates
III. Financial Forecast for FYE3/2023
IV. Medium- to Long-term Management Direction
V. Appendix【Financial Results for the Fiscal Year Ended March 31, 2021 (FYE3/2021) in this material】
The company (the former Mitsubishi UFJ Lease & Finance Company Limited (MUL)) executed the business integration with Hitachi Capital
Corporation (HC) and changed the trade name to Mitsubishi HC Capital Inc. (MHC) on April 1, 2021. Therefore, the results for FYE3/2021
are the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis in a simplified manner, and arepresented as reference values.

1Highlights
Net income for FYE3/2022 exceeded the forecast. The annual dividend per share is 28 yen,
2 yen higher than the forecast (up 2.50 yen YOY).
Net income increased by 12.2 billion yen YOY to 99.4 billion yen thanks to the business growth mainly in Europe and the U.S. and anincrease in gains on sales in the Aviation business, along with other factors. This exceeds the forecast for FYE3/2022 (net income: 95.0
billion yen) by 4.4 billion yen.
 Dividend per share increases by 2 yen from the forecast (up 2.50 yen YOY) to 28 yen (payout ratio of 40.4%).
Net income for FYE3/2023 forecast to be 110.0 billion yen.
The annual dividend per share is projected to be 31 yen, increase by 3 yen YOY.
Net income for FYE3/2023 reach record-high profit exceeding that for FYE3/2020 (101.4 billion yen*1), the fiscal year just before the
COVID-19 pandemic, thanks to the growth in various businesses and contributions of consolidation of a U.S. leading marine container
leasing company CAI, along with other factors.
 The dividend per share is projected to be 31 yen, increase by 3 yen YOY (payout ratio of 40.5%).
“Medium- to long-term management direction” has been formulated (refer to page 24 to 29 for details).
We will promote “CX*2” through “SX*3 / DX*4” and “Business Portfolio Transformation”, and achieve “Our 10-year Vision” through ourthree-phase Medium-term Management Plans.
 The expected targets for the final fiscal year of the new Medium-term Management Plan (FYE3/2026) are ROA*5 of approx. 1.5%, andROE*5 of approx. 10%. The expected target of the dividend payout ratio for the period of the new Medium-term Management Plan(FYE3/2024 to FYE3/2026) is approx. 40%.


*1 Simple sum of MUL (J-GAAP basis) and HC (IFRS basis) figures*2 Corporate Transformation / Customer Experience*3 Sustainability Transformation*4 Digital Transformation*5 Based on net income2I. Financial Results for FYE3/2022

3

Financial Results for FYE3/2022
 Gross profit increased by 38.8 billion yen or 13.1% YOY to 334.6 billion yen and the net income attributable to owners of the parent
increased by 12.2 billion yen or 14.0% YOY to 99.4 billion yen, thanks to the business growth mainly in Europe and the U.S., and anincrease in gains on sales in the aviation business, along with other factors.
 Net income for FYE3/2022 exceeded the forecast (net income: 95.0 billion yen) by 4.4 billion yen.
(a)

(b)

(c)=(b)-(a)(d)(Reference)
FYE3/2021

FYE3/2022

YOY
Change(e)=(c)/(a)(f)(g)=(b)-(f)YOY
Change(%)

FYE3/2022
Forecast

Change

+3.0%

-

-

1

Revenues

1,713.8

1,765.5+51.6

Exchange
Rates
Effects*5+25.0

2Gross Profit

295.8

334.6

+38.8

+9.6

+13.1%--

3

Operating Income

98.0

114.0

+16.0

+3.3

+16.4%--

4

Recurring Income

105.4

117.2

+11.8

+3.6

+11.2%--

5

Net Income*1

87.1

99.4

+12.2

+2.7

+14.0%

95.0

+4.4

6

New Transactions Volume2,261.4

2,507.8+246.3+94.9+10.9%--

7

Total Segment Assets*2

8,604.8

9,345.3+740.4*6+359.1+8.6%*6--

8

Dividend per Share¥25.50*7¥28.00+¥2.50+¥2.009

Payout Ratio

40.4%-0.7pt39.3%+1.1pt

10

ROA*3

11

ROE*3

12

OHR*4

56.5%

<ROE and ROA>
Calculated using the net
income and equity or total
assets adjusted upon the
integration, etc.
(refer to *8 below for details)¥26.0041.1%*7(Billion Yen)-

1.0%*8--8.0%*854.6%-1.9pt

-

-

8.0%

0.0pt

55.9%

-1.3pt*1 Net income attributable to owners of the parent*6 Change vs. end of FYE3/2021*2 “Operating assets” + “equity method investments” + “goodwill” + “investment securities, etc.” *7 MUL’s figure for FYE3/2021(refer to page 34 for details)*8 Denominator: average of FYE3/2022 equity and FYE3/2021 equity (calculated by adding up
J-GAAP-based reference figures of the former 2 companies and made*3 Based on net income
adjustments upon the integration) or of FYE3/2022 total assets and FYE3/2021*4 SG&A expenses divided by (gross profit + non-operating income/expenses),but SG&A expenses and non-operating income/expenses do not include credit costs
total assets (calculated by adding up J-GAAP-based reference figures of theformer 2 companies and made adjustments upon the integration)*5 Effects of changes in exchange rates to be applied when incorporating results ofoverseas subsidiaries (refer to page 40 for details)
Numerator: net income for FYE3/2022

4

Increase/Decrease in Net Income
Attributable to Owners of the Parent
(2)
+9.7

(1)
+34.2

(Billion Yen)

(4)
+2.1

Net Income
+12.2

▲9.4
(3)

▲15.0

87.1

▲9.3
(6)

(5)

31.8*2

99.4
55.3*1FYE3/2021(Reference)

Business Growth*³

Extraordinary
Income/Loss

MUL Result*1(Billion Yen)

FYE3/2021

FYE3/2022

Credit Costs

HC Result*2

Expenses Related
to the Business
Integration
Positive Factor

OperatingExpenses*⁴

Others

FYE3/2022

Negative Factor

Major Factors for Changes(1) Business Growth*3

301.3

 Increased YOY thanks to the business growth in European and U.S. subsidiaries in the Account Solution and in the
335.5
marine container leasing business, in addition to an increase in gains on sales in the Aviation business, etc.

(2) Extraordinary
Income/Loss

20.2

30.0  Increased YOY thanks to the sale of strategic shareholdings to replace the portfolio, etc.

(3) Credit Costs

25.7(4) Expenses Related to theBusiness Integration

8.2(5) Operating Expenses*4

161.8(6) Others

38.5

 Increased YOY due to the posting of expenses on payment deferrals by some customers in the infrastructure,
Customer Business and Aviation business .
 Decreased YOY thanks to the absence of due diligence expenses (8.2 billion yen in total for the former two
companies), etc. posted in FYE3/2021, despite the posting of expenses related to the trade name change and to
6.1
systems, etc. (6.1 billion yen).
 Increased YOY due to expenses associated with the promotion of business activities primarily in overseas
176.9
subsidiaries and the acquisition cost of marine container leasing company CAI (1.5 billion yen), etc.
47.8  An increase in taxes, etc.
35.2

(Note) (1) to (5) are based on figures before tax. Taxes are included in (6)*1 MUL’s net income is retroactively adjusted along with the change in the accounting method (refer to page 34 for details)*2 HC’s net income attributable to owners of the parent (IFRS basis) converted into J-GAAP basis in a simplified manner,which is presented as a reference value*3 Gross profit + non-operating income/expenses (however, non-operating income/expenses do not include gain on bad
debts recovered)*4 Excluding expenses related to the business integration

5

Exposures to Russia and UkraineReceivables in Russia and Ukraine held by MHC are minor at the moment,
thus the impact on business for MHC is limited.
However, we will keep a close eye on the indirect effects on MHC’s performancecaused by the impact on the global economy.
The balance of outstanding receivables held by MHC in Russia is approximately 500
million yen as of the end of April 2022.
The majority of such receivables are covered by trade insurance.



The aircraft leasing business has no receivables in Russia or Ukraine.



Neither the aircraft engine leasing business has any receivables in Russia or Ukraine.

(However four engines, leasing to companies outside these countries, are located in
Russia as of May 13, 2022.)6

II. Segment Updates

7Increase/Decrease in Segment Profit and Assets
Segment Profit(Billion Yen)
FYE3/2021(Reference)

25.5

19.9

0.7
1.8
7.0 2.8
▲6.9
▲0.2

28.0

4.1 4.2

Total：87.1

FYE3/2022
33.4

26.9

3.0 4.8

19.1

7.0

Total：99.4

Customer BusinessAccount Solution
Segment Profit

Vendor Solution

LIFE

Real Estate

Environment & Renewable Energy

Aviation

Logistics

Mobility

1.9▲2.1
5.7 2.7▲3.4

OthersAdjustments

Segment Assets
Major Factors for Changes in Segment Profit(Billion Yen)

FYE3/2021 FYE3/2022

YOY

FYE3/2021 FYE3/2022

YOY

Customer Business

25.5

33.4

+7.9

2,129.5

2,002.1-127.4

Increased thanks to business growth of ENGS, a U.S. sales finance company, and to the sale of strategic shareholdings, etc.

Account Solution

19.9

26.9

+6.9

2,109.2

2,353.4+244.2

Increased thanks to business growth mainly in Europe and the U.S., etc.

Vendor Solution

4.1

3.0

-1.1

434.4

424.6

-9.7

Decreased due to declines in segment assets, etc. while new transactions volume increased

LIFE

4.2

4.8

+0.6

321.8

312.7

-9.0

Increased thanks to the sale of logistics facilities in real estate-related business, etc.

Real Estate

28.0

19.1

-8.8

955.6

974.9

+19.2

Environment &Renewable Energy

7.0

7.0

0.0

322.4

315.4

-6.9

Aviation

2.8

5.7

+2.9

1,203.8

1,365.1+161.2

Increased thanks to the increases in gains on sales of owned assets and gains on sales of certain receivables from bankrupt debtors,
etc.

Logistics

1.8

2.7

+0.8

545.5

1,063.2+517.7

Increased mainly thanks to business growth of BIL, etc., while posting the acquisition cost of CAI (1.5 billion yen)

Mobility

0.7

1.9

+1.1

161.1

174.8

+13.6

Increased thanks to favorable sales of vehicles for which the leasing term matured in Japan and overseas

Others

-0.2

-3.4

-3.1

355.7

355.5

-0.2

Posting of credit costs on payment deferrals in infrastructure-related business, etc.

Adjustments

-6.9

-2.1

+4.8

65.4

3.2

-62.2

Declines in expenses associated with advance funding and integration expenses posted in FYE3/2021, etc.

Total

87.1

99.4

+12.2

8,604.8

9,345.3+740.4

Decreased due to a reactionary fall in gains on sales posted in FYE3/2021, etc.
No change because the posting of gains on sales of solar energy-related assets were offset by the absence of one-time gains
posted in FYE3/2021, etc.

(Note) Refer to page 41 and 42 for details of subsidiaries (abbreviations, etc.)8Focused Business Domains

Customer BusinessSocialInfrastructure& LifeMajor Figures (Billion Yen)
FYE3/2021

FYE3/2022

YOY*

Environment& Energy

Sales
Finance

Mobility

GlobalAssetsComment
 Gross profit increased YOY thanks to business growth of ENGS,

Gross Profit

59.8

62.9

+3.0

Segment Profit

25.5

33.4

+7.9

New Transactions Volume

587.2

592.2

+5.0

Domestic

435.8

424.8

-10.9

 Segment assets decreased compared to the end of FYE3/2021 due toOverseas

151.3

167.3

+15.9

the impact of a decrease in domestic new transactions volume andsale of strategic shareholdings, etc.

North America

81.1

111.3

+30.2

ASEAN

34.4

27.8

-6.5

China Region

32.3

28.1

-4.1

Others

3.5

-

-3.5

Segment Assets

2,129.5

2,002.1-127.4

Domestic

1,700.4

1,592.8-107.5

Overseas

429.1

409.3

-19.8

North America

202.3

237.6

+35.2

ASEAN

107.9

92.8

-15.0

China Region

73.9

69.0

-4.8

Others

44.9

9.7

-35.1

a U.S. sales finance company, etc., despite the impact of thedeconsolidation of Hirogin Lease in FYE3/2021, etc.
 Segment profit increased YOY thanks to the sale of strategic

shareholdings, which was executed in 1Q aiming to replace theportfolio, despite the posting of large credit costs.

Segment Assets of Customer Business by Region (FYE3/2022)

Overseas
20.4%

China Region
ASEAN 3.4%

Others
0.5%

4.6%

North America
11.9%
Total
2,002.1
Billion Yen

Domestic
79.6%

Japan
79.6%

* Segment assets figure is vs. end of FYE3/2021

9Focused Business Domains

Account Solution

SocialInfrastructure& LifeMajor Figures (Billion Yen)
FYE3/2021

FYE3/2022

YOY*

Environment& Energy

Sales
Finance

Mobility

Comment
 Segment profit increased YOY as a result of the business growth

Gross Profit

80.1

102.6

+22.5

Segment Profit

19.9

26.9

+6.9

Domestic

4.0

5.1

+1.1

 New transactions volume dramatically increased YOY in Europe,

Overseas

15.9

21.7

+5.8

Europe

11.2

15.2

+3.9

thanks to the recovery from a decline in demand affected by the
lockdown in the UK in FYE3/2021.

The Americas

3.1

5.6

+2.4

China

1.3

0.0

-1.4

ASEAN

0.1

0.9

+0.7

New Transactions Volume

866.7

1,092.5+225.7

Domestic

158.2

177.9

+19.6

Overseas

708.5

914.6

+206.0Europe

461.4

608.2

+146.8The Americas

145.2

189.9

+44.6

China

61.5

66.8

+5.2

ASEAN

40.2

49.6

+9.3

2,109.2

2,353.4+244.2

Domestic

528.1

525.8

-2.3

Overseas

1,581.0

1,827.6+246.5

Europe929.7

1,080.4+150.6The Americas

365.1

478.6

+113.4

China

164.6

147.6

-16.9

ASEAN

121.5

120.9

-0.6

Segment Assets

GlobalAssetsthanks to the proactive business operations mainly in Europe and theU.S.

 Segment assets increased compared to the end of FYE3/2021 thanks

to the increase in new transactions volume in Europe and the U.S.,
etc.

Segment Assets of Account Solution by Region (FYE3/2022)

China
6.3%
The Americas
20.3%

ASEAN
5.2%

Domestic
22.3%
Japan
22.3%
Total
2,353.4
Billion Yen

Overseas77.7%

Europe45.9%* Segment assets figure is vs. end of FYE3/2021

10

Vendor Solution

Focused Business Domains
SocialInfrastructure& LifeEnvironment& Energy

Sales
Finance

Mobility

GlobalAssetsComment

LIFE

Focused Business Domains
SocialEnvironment
Infrastructure& Energy& LifeSales
Finance

Mobility

GlobalAssetsComment

 Segment profit decreased YOY due to a decline in segment assets,etc.

 Segment profit increased YOY thanks to a decrease in expenses in

addition to the sale of multiple logistics facilities.

 New transactions volume increased YOY thanks to the improvementof investment demand among customers.

 New transactions volume decreased YOY due to the reactionary fall inlarge real estate leasing transactions posted in FYE3/2021.

Major Figures (Billion Yen)

Major Figures (Billion Yen)
FYE3/2021

FYE3/2022

YOY*1

FYE3/2021

FYE3/2022

YOY*1

Gross Profit

15.8

15.0

-0.7

Gross Profit

14.6

15.7

+1.0

Segment Profit

4.1

3.0

-1.1

Segment Profit

4.2

4.8

+0.6

New Transactions Volume

131.5

132.7

+1.2

New Transactions Volume

201.3

155.2

-46.0

Segment Assets

434.4

424.6

-9.7

Segment Assets

321.8

312.7

-9.0

Leasing

347.4

336.6

-10.8

Real Estate-related

174.6

170.5

-4.0

Finance Leasing

337.8

333.5

-4.3

Leasing

166.8

159.7

-7.1

Operating Leasing

9.5

3.1

-6.4

Securitization (Equity)

7.7

10.8

+3.1

Installment

13.8

12.4

-1.4

Others*2

147.2

142.1

-5.0

Loans

40.9

39.6

-1.3

Others

32.1

35.9

+3.7

*2 Includes PPP/PFI, food and agriculture, and living essentials industry, etc.

*1 Segment assets figure is vs. end of FYE3/2021

11

Focused Business Domains

Real EstateSocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)
FYE3/2022

YOY*2

Segment Profit

46.2
28.0

38.0
19.1

-8.1
-8.8

New Transactions Volume

146.4

130.1

-16.3

Segment Assets

955.6
254.9
248.7
122.7
103.1
19.5
64.8
48.0
16.7

974.9
252.2
238.2
148.9
124.4
24.5
56.8
39.6
17.2

+19.2
-2.6
-10.4
+26.1
+21.2
+4.9
-7.9
-8.3
+0.4

Real Estate Rental
Business

89.7

85.5

-4.1

Real Estate Revitalization
Investment

174.6

FYE3/2021
Gross Profit

Real Estate Leasing
Other Real Estate Finance
Securitization (Debt)
Domestic*1
Overseas
Securitization (Equity)
Domestic*1
Overseas

193.0

+18.3

*1 The amount is booked by Real Estate Business Department*2 Segment assets figure is vs. end of FYE3/2021

Sales
Finance

Mobility

GlobalAssetsComment
 Segment profit decreased YOY mainly due to the reactionary fall inlarge gains on sales and the absence of compensation received inassociation with a redevelopment project posted in FYE3/2021,
despite the posting of large gains on sales of office assets in 4Q.
 Segment assets increased vs. the end of FYE3/2021 due to theposting of multiple large transactions.

Breakdown of Amount of Equity Contribution for Domestic
Securitization/Real Estate Revitalization Investment*3*4 (FYE3/2022)(1) By Asset Type
Residence
2.0%

Logistics
16.8%(2) By Region
NagoyaMetroporitan
District
7.5%

Others
9.7%

Others9.5%

Office
29.6%

Total
124.2
Billion Yen

Commercial
Facility
18.5%

Total

Tokyo
Metroporitan
District
58.5%

124.2
Osaka
Metroporitan Billion Yen
District
24.5%

Hotel
23.4%

Amount of Equity Contribution for Domestic Securitization/
Real Estate Revitalization Investment*3*4 (Billion Yen)
FYE3/2022

Change from
FYE3/2021

111.4
37.2

124.2
33.6

+12.8
-3.5

74.1

90.5

+16.4

FYE3/2021
Total
Domestic Securitization
Real Estate Revitalization
Investment*3 Management accounting figure (total of equity investment in domestic securitization/
real-estate revitalization). The figure is not equal to the equity balance of segment assets
for some investees because they are consolidated subsidiaries and investment and capitalare offset in financial accounting*4 Relevant segment assets for domestic securitization are 48.0 billion yen for FYE3/2021
and 39.6 billion yen for FYE3/2022. Those for real estate revitalization investment are
174.6 billion yen for FYE3/2021 and 193.0 billion yen for FYE3/2022

12Focused Business Domains

Environment & Renewable Energy
Major Figures (Billion Yen)

SocialEnvironment
Infrastructure& Energy& LifeSales
Finance

Mobility

GlobalAssetsComment

FYE3/2021

FYE3/2022

YOY*1

Gross Profit

14.1

17.0

+2.8

Segment Profit

7.0

7.0

0.0

 Gross profit increased YOY thanks to an increase in gains on sales ofsolar energy-related assets, and an increase in electricity sales
revenue along with the start of operation of our investees’ power
plants, etc.

.

New Transactions Volume

42.5

31.3

-11.2

 Segment profit remained the same compared to FYE3/2021 becauseof the absence of one-time gains that were posted in FYE3/2021 on
the consolidation of subsidiaries through additional investments insolar energy-related SPCs, etc.

Segment Assets

322.4

315.4

-6.9

Finance

91.6

85.3

-6.2

Power Generation
Business Assets

229.1

226.4

-2.6

1.6

3.7

+2.0

OthersHistory of Domestic and Overseas Output in Operation Based on the
Equity Ownership (MW) The output of projects that have begun operations is 1.2GW.

The total output combined with projects that have executed thecontracts but have not begun operation is 1.5GW.

*1 Segment assets figure is vs. end of FYE3/2021

Combined withprojects that havenot begun operation
Approx. 1,550

Domestic and Overseas Output in Operation Based on the Equity Ownership*2*3*4(MW) (Includes results in the Infrastructure & Investment Business Division)

Change from
FYE3/2021

FYE3/2021

FYE3/2022

1,136*5

1,225

+89

Solar Power

907

951

+44

Domestic

899

934

+35

Overseas

7

16

+8

661
197

Wind Power

228*5

273

+45

463

Domestic

190

190

-

Overseas

38

83

+45

Total

870
201
668

1,136
228

1,225
273

907

951

1,225

FYE3/2019 FYE3/2020 FYE3/2021 FYE3/2022
Solar Power Wind Power*2 Includes equity-method investments *4 Projects classified as finance are not included*3 Management accounting figures*5 Revised the figure in the presentation material
for FYE3/2021 results (refer to page 34 for details)

13

Focused Business Domains

Aviation

SocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)

Sales
Finance

Mobility

GlobalAssetsComment

FYE3/2021

FYE3/2022

YOY*1

Gross Profit

27.5

35.0

+7.4

Segment Profit

2.8

5.7

+2.9

106.0

181.3

+75.3

 Segment profit increased YOY mainly thanks to the increase in grossprofit, despite the increase in credit costs and the posting of foreignexchange losses.

New Transactions Volume1,203.8

1,365.1+161.2

Aircraft Leasing (JSA)

862.9

995.1

+132.1Engine Leasing (ELF)

244.1

299.5

+55.4

Aircraft Leasing (MHC)

96.7

70.4

-26.2

Segment Assets*1 Segment assets figure is vs. end of FYE3/2021

 Gross profit increased YOY thanks to the increase in gains on sale ofowned assets and of certain receivables from bankrupt debtors,
despite the increase in expenses in relation to modification of terms
for certain existing contracts and impairment losses.

 Our aircraft leasing business has a highly liquid portfolio centering on

young aged and next-generation narrow-body aircraft*5, and theaircraft off-leasing ratio as of the end of March 2022 remained low.

Breakdown of Owned Aviation-related Assets (FYE3/2022)(1) Aircraft Assetby Type/Region

Owned Aviation-related Assets*2*3
Change from
FYE3/2021

FYE3/2021

FYE3/2022

Number of Aircraft (JSA)

177

191

+14

Number of Aircraft
Purchased

11

22

+11*4

Number of Aircraft Sold

1

8

+7*4

Average Age (JSA)

4.1 years

4.5 years+0.4 years

Number of Aircraft
Engines (ELF)

311

341

+30

(2) Aircraft Engine
by Region

Middle East & Others
7.5%

Middle East & Others
8.8%

Europe22.0%

Europe18.9%

Others
10.5%

Total
191
Aircraft
Narrow Body*⁵
89.5%

Total Americas
39.3%
191
Aircraft

Asia/Oceania
31.2%

Total
Americas341
Engines 46.6%

Asia/Oceania
25.7%*5 Single-aisle aircraft mainly used for domestic and short-distance flights(A320 series of Airbus, B737 series of Boeing, etc.)*2 Management accounting figures*3 Figures before consolidated adjustments*4 The number is vs. FYE3/2021

14

Focused Business Domains

Logistics

SocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)

Sales
Finance

Mobility

GlobalAssetsComment

FYE3/2021

FYE3/2022

YOY*1

Gross Profit

5.0

7.7

+2.6

Segment Profit

1.8

2.7

+0.8

New Transactions Volume

75.1

78.0

+2.8

 Segment profit increased YOY mainly thanks to the increase in grossprofit and in equity-method investment gains in the auto leasing
business, while the expenses (1.5 billion yen) for acquiring CAI wereposted.

Segment Assets

545.5

1,063.2+517.7

Marine Containers

223.5

736.5

+512.9

Railway Freight Cars

195.7

223.2

+27.4

Shipping and Others

126.1

103.4

-22.7

*1 Segment assets figure is vs. end of FYE3/2021

 Gross profit increased YOY thanks to the acquisition of CAI*6 inaddition to the steady performance of BIL, despite the posting of onetime expenses in connection with reconfiguration of portfolio in railway
freight car leasing business.

 Segment assets increased compared to the end of FYE3/2021 thanks

to the acquisition of CAI.
*6 The profit from the time of acquisition to the end of December (for approx. 1 month) was
consolidated

History of Marine Container Fleet of BIL and CAI (TEU 1,000)*7
 In terms of the number of owned marine containers, MHC Group has

Owned Logistics-related Assets*2
Change from
FYE3/2021

grown to one of the 2nd largest companies in the world upon theacquisition of CAI.
3,203

FYE3/2021

FYE3/2022

Marine Container Fleet(TEU 1,000*3)

1,515

3,492*5+1,977

1,465

1,611

Marine Container Fleet(CEU 1,000*4)

1,659

3,701*5+2,042

1,300

1,368

1,515

FYE3/2019

FYE3/2020

FYE3/2021

BIL

BIL+CAI

Number ofRailway Freight Cars

20,554

21,818+1,264

2,766

2,980

1,688
3,492

CAI

FYE3/2022*7 The figures of CAI for FYE3/2019 through FYE3/2021 are pre-acquisition figures provided forreference*2 Management accounting figures*3 TEU: Twenty Feet Equivalent Unit (unit equivalent to the capacity of a 20-feet long container)*4 CEU: Cost Equivalent Unit (unit equivalent to the cost of a 20-feet long container)*5 Sum of BIL and CAI

15

Mobility

Focused Business Domains
SocialEnvironment
Infrastructure& Energy& LifeSales
Finance

Mobility

GlobalAssetsComment

Others

Sales
Finance

GlobalAssetsMobility

Comment

 Segment profit increased YOY thanks to the increase in the gain on

sales of vehicles for which the leasing term matured in Japan andoverseas, etc., responding to the high demand for used vehicles on a
global basis.

Major Figures (Billion Yen)

 Gross profit increased YOY thanks to the increase in profits from thehealthcare-related fund, etc.
 Segment profit decreased YOY due to the posting of credit costs on

payment deferrals by some customers in infrastructure-related
businesses.
Major Figures (Billion Yen)

FYE3/2021

FYE3/2022

YOY*

Gross Profit

12.0

14.9

+2.8

Segment Profit

0.7

1.9

New Transactions Volume

48.0

Segment Assets

Domestic

Overseas

Focused Business Domains
SocialEnvironment
Infrastructure& Energy& LifeFYE3/2021

FYE3/2022

YOY*

Gross Profit

14.0

15.3

+1.3

+1.1

Segment Profit

-0.2

-3.4

-3.1

55.7

+7.6

New Transactions Volume

56.5

58.5

+1.9

161.1

174.8

+13.6

Segment Assets

355.7

355.5

-0.2

99.3

98.0

-1.3

Healthcare

157.3

162.8

+5.4

Infrastructure &Investment

111.6

132.5

+20.9

Others

86.7

60.1

-26.5

61.7

76.7

+15.0

* Segment assets figure is vs. end of FYE3/2021

16

Organizational Changes
 Toward the new Medium-term Management Plan scheduled to start from FYE3/2024, organizations with similar functions and roles were
integrated as of April 1, 2022.The organizational levels of the business departments, which differed under the former two companies, havebeen unified and reorganized into three domains: “(1) customers/partners domain”, “(2) Global Business Domain”, and “(3) specializedbusiness domain”.

New Organization

Previous

Business Management Division

Business&
Strategic
Planning
Division

Hitachi
VendorCorporate
LIFE
Group
Solutions
Business
Business
Business
Business
Division
Division
Division
Division

Environment& Energy
Business
Division

Mobility
Solutions
Business
Division

Customer Business Division

EuropeRegionAmericas
RegionChina
RegionASEAN
RegionBusiness Overseas
Promotion Management
Division Company

East
CentralWest
Machinery
Japan
Japan
Japan
Business
Area
Area
Area
Company
Company Company Company(1) Customers/Partners Domain(2) Global Business Domain

Customer Solutions Unit

Global Business Unit

VendorBusiness Corporate
Solutions
Promotion BusinessBusiness
Division
Division
Division

LIFE
Business
Division

East
Japan
Area
Business
DivisionCentralJapan
Area
Business
Division

West
Japan
Machinery Healthcare
Area
Business BusinessBusiness Division
Division
Division

GlobalBusiness
Promotion
DivisionReal
EstateBusiness
Division

Infrastructure

Aviation
Business
Division

Logistics
Business
Division

Renewable&
Healthcare
EnergyInvestment
Business
Business
Business Division
Division
Division(3) Specialized Business Domain

Environment,

EuropeDivision

Americas
Division

China
Division

ASEAN
Division

Energy &Infrastructure

Business
Division

Aviation
Business
Division

Logistics
Business
DivisionReal
EstateBusiness
Division

Mobility
Business
Division17

New Reporting Segments from 1Q FYE3/2023 (Planned)
 Along with the organizational changes effective on April 1, 2022, we plan to change the reporting segments as follows from 1Q FYE3/2023.
Until FYE3/2022

Reporting Segments

A

Customer Business

From FYE3/2023
FYE3/2022(Billion Yen)

Segment
AssetsSegment
Profit2,002.1

33.4

Reporting Segments

A

Account Solution

2,353.4

26.9

C

Vendor Solution

424.6

3.0

D

LIFE

312.7

4.8

Global Business

E

Real Estate

974.9

19.1

F

Environment & Renewable Energy

315.4

7.0

Environment, Energy &InfrastructureG

Aviation

1,365.1

5.7

H

Logistics

1,063.2

2.7

IMobility

174.8

1.9

K

OthersL
Adjustments
Total

Healthcare

162.8

Infrastructure & Investment

132.5

Others60.1

Before

B

C

E*2 J
A

Segment
AssetsSegment
Profit3,337.6

32.7

2,316.3

41.2

417.9

2.2

D

Customer Solutions

B

J(Ref.*1)
FYE3/2022 (Billion Yen)

K*3 L*4
I*5

B
F

K

AviationG

1,365.1

5.6

Logistics

H

1,026.7

0.8

Real Estate

E

712.7

12.3

129.4

3.1

39.3

1.1

9,345.3

99.4-3.4
Mobility

3.2

-2.1

Adjustments

9,345.3

99.4

Total

*1 FYE3/2022 results converted into new reporting segments in a simplified manner as reference values*2 Real estate leasing transferred from Real Estate*3 PFI business and corporate investment transferred from Infrastructure & Investment*4 Purchasing and sales business of secondhand property and trust business transferred from Others*5 Mobility business in Europe transferred from Mobility*6 Auto leasing transferred from Logistics

H*6

I

18

III. Financial Forecast for FYE3/2023

19

Financial Forecast for FYE3/2023
 Net income attributable to owners of the parent for FYE3/2023 is projected to be 110.0 billion yen, increased by 10.5 billion yen YOY,
thanks to various reasons including business growth and decrease in credit costs and impairment losses. This net income forecast for
FYE3/2023 (110.0 billion yen) reaches record-high profit exceeding that for FYE3/2020 (101.4 billion yen*1), the fiscal year just before the
COVID-19 pandemic.
 ROA*2 in FYE3/2023 is estimated to be 1.1%, up 0.1pt YOY, and ROE*2 is estimated to be 8.2%, up 0.2pt YOY, by increasing profits
through strategic resource/asset re-allocation focusing on profitability.
 OHR*3 is estimated to be 54.1%, down 0.5pt YOY, by steady business growth, in spite of an increase of expenses associated with thepromotion of business activities.
 We estimate the annual dividend per share of 31 yen, up 3 yen YOY (interim dividend of 15 yen and year-end dividend of 16 yen) and apayout ratio of 40.5%.

(Billion Yen)

FYE3/2022

FYE3/2023*4*5

YOY
ChangeYOY
Change (%)

1

Net Income Attributableto Owners of the Parent (Billion Yen)

99.4

110.0

+10.5

+10.7%

2

ROA*2

1.0%

1.1%

+0.1pt

-

3

ROE*2

8.0%

8.2%

+0.2pt

-

4

OHR*3

54.6%

54.1%

-0.5pt-5

Dividend per Share (Yen)

28.00

31.00

+3.00

-

6

Payout Ratio

40.4%

40.5%

+0.1pt-*1 Simple sums of MUL (J-GAAP basis) and HC (IFRS basis)*2 Based on net income*3 SG&A expenses divided by (gross profit + non-operating income/expenses), but SG&A expenses and non-operating
income/expenses do not include credit costs*4 Forecast as of May 16, 2022
*5 The assumed foreign exchange rates are $1=¥120, £1=¥158, €1=¥134

20

History of Major Figures
FYE3/2019(Billion Yen)

FYE3/2020

FYE
3/2022

FYE3/2021

FYE3/2023*1(Forecast)

HC

MUL

MUL

MUL

(IFRS)(J-GAAP)

SimpleSum

HC(J-GAAP)

SimpleSum

HC(IFRS)(IFRS)(J-GAAP)

SimpleSum

MHC
ResultForecast for
FYE3/2023

YOY

1

Net Income*2

19.3

68.7

88.1

30.6

70.7

101.4

32.0

55.3

87.3

99.4

110.0

+10.5

2

ROA*3

0.5%

1.2%

1.0%

0.8%

1.2%

1.0%

0.9%

0.9%

0.9%

1.0%

1.1%

+0.1pt

3

ROE*3

5.1%

9.4%

8.0%

8.1%

9.2%

8.9%

8.0%

7.0%

7.3%

8.0%

8.2%

+0.2ptHistory of Net Income

Aim for increase in net income
for two consecutive terms
and the record-high profits
95.7
86.0
32.0

101.4
88.1

87.3
30.6

19.3

32.0

32.9

99.4

53.1

FYE3/2017

63.6

68.7

70.7

FYE3/2018

FYE3/2019

FYE3/2020

110.0

55.3

MHC(MUL)FYE3/2021
HC

FYE3/2022

FYE3/2023(Forecast)*1 The assumed foreign exchange rates for FYE3/2023 are $1=¥120, £1=¥158, €1=¥134*2 For MUL, net income attributable to owners of the parent under J-GAAP
For HC, net income attributable to owners of the parent under IFRS
*3 Based on net income21Increase/Decrease in Net Income
Attributable to Owners of the Parent (Forecast)(Billion Yen)

(2)
+16.0

(1)
+43.0

(5)
+3.0

▲24.0
(3)

Net
Income
+10.5

▲28.0
(4)
110.0

99.4

FYE3/2022(Actual)Business Growth*Credit Costs

OperatingExpenses

Positive Factor

Extraordinary
Income/Loss

Others

FYE3/2023(Forecast)

Negative Factor

Major Factors for Changes(1) Business Growth*(2) Credit Costs(3) Operating Expenses

 Increase YOY thanks to growth of each business and the consolidation of CAI, a U.S. marine container leasing company that
became our wholly-owned subsidiary in FYE3/2022, etc.
 Decline in credit costs in the Aviation business and absence of credit costs in infrastructure business that were posted in
FYE3/2022, etc.
 Increase in expenses along with the consolidation of CAI and with the promotion of business activities primarily in overseas
subsidiaries, etc.

(4) Extraordinary
Income/Loss Absence of large profits on the sale of strategic shareholdings posted in FYE3/2022, etc.

(5) Others

 An increase in taxes, etc.

(Note 1) (1) to (4) are based on figures before tax. Taxes are included in (5)(Note 2) Because of rounding, sum of the figures (1) to (5) do not match the amount of an increase in net income (10.5 billion yen)
* Gross profit + non-operating income/expenses

22

Dividend Forecast for FYE3/2023
 We will return profits to shareholders by distributing dividends; the annual dividend per share is estimated to be 31 yen, up 3 yen YOY inline with our expected target for the payout ratio of approx. 40% during the period of the new Medium-term Management Plan scheduled tostart in April 2023. Assuming net income of 110.0 billion yen and dividend per share of 31 yen, the payout ratio is estimated to be 40.5%.
Dividend History of MHC (MUL)
57.1%*2

41.1%

29.1%

30.0%

30.5%

31.4%

30.4%

31.5%

34.3%

40.4%

40.5%

Expect dividend
increase by 3 yen per share

25.3%

27.8%
25.2%
18.9%

19.2%

20.0%

21.8%
23.5

25.0

25.5

FYE3/2019

FYE3/2020

FYE3/2021

28.0

31.0

18.0
8.0

9.5

FYE3/2014

FYE3/2015

12.3

13.0

FYE3/2016

FYE3/2017

Dividend per Share (Yen)*¹

FYE3/2018

Payout Ratio (MHC (MUL))FYE3/2022

Payout Ratio (HC)FYE3/2023(Forecast)*1 MUL’s results from FYE3/2014 to FYE3/2021*2 Includes special dividends (dividends of 40.0 yen per share) in FYE3/2020

23

IV. Medium- to Long-term Management Direction24Basic Management Policy
Our Mission ~Our long-term goal~
Basic
Management
PolicyContribute to a prosperous and sustainable future by creating social value through maximizing thepotential of assets.

Our
MissionOur Vision ~Objectives to achieve our long-term goal~• Solve social issues by developing unique and progressive businesses with consideration for the
global environment.
• Aim for sustainable growth through value co-creation with diverse stakeholders across the globe.

Our Vision• Enhance corporate value by evolving our business model through utilizing digital technology anddata.
• Foster an “open, creative and engaging” corporate culture that shapes each and every employee’s
motivation and pride.
• Aim to be a trusted company by complying with laws and regulations, as well as implementing
ethical corporate management.

~“Values and mindset to be held” and “actions to be taken”

Action Principles

Action Principles by each and every employee~• Challenge
and:Challenge ourselves to look forward to the future with a sense of responsibility
commitment.

• Digital:Drive digital innovation and expertise.

• Communication :Communicate openly and honestly to build mutual understanding and trust.

Management Plan
Business Strategies
Management Base Strategies• Diversity:Embrace diversity and respect each other.

• Sustainability:Act in harmony with people, society and the earth to create a sustainable world.

• Integrity:Maintain the highest standards of ethics and integrity.

25

Our 10-year Vision
 We will achieve “Our 10-year Vision” by implementing Medium-term Management Plans in three phases. The new Medium-termManagement Plan starting in FYE3/2024 is set as phase one, ‘hop’, followed by the Management Plans as phase two, ‘step’, and phase
three, ‘jump’.
 Our expected target of ROA* is approx. 1.5% and of ROE* is approx. 10% for FYE3/2026, the final fiscal year of the “hop” phase. The
expected target of payout ratio for the period of the new Medium-term Management Plan is aimed to be approx. 40%.

Our
10-year
VisionTogether we innovate, challenge and explore the frontiers of the future To achieve our mission, continue to be an “innovator (who ventures into unexplored
fields and creates innovation)” who challenges the frontiers of the future without beingbound by precedents.
 Anticipate the changes in society and the business environment including changes in
global industrial structures, accelerating digitalization and increasing importance ofsustainability, and continue addressing social issues that can be solved only by MHC
through approaches such as SX (sustainability transformation) and DX (digitaltransformation) with customers and partners.

1stMedium-term Management Plan

2nd
Medium-term Management Plan

3rd
Medium-term Management Plan

Hop

Step

Jump

FYE3/2022

FYE3/2023

FYE3/2024

FYE3/2026

ROA*

1.0%

1.1%

・・・

Approx. 1.5%

ROE*
Payout Ratio

8.0%
40.4%

8.2%
40.5%

・・・

Approx. 10%

FYE3/2029

FYE3/2032

Approx. 40%(during the period of new Medium-term Management Plan)[Expected target]* ROA and ROE are based on net income

26Medium- to Long-term Management Direction:
Toward Our 10-year Vision Achieve “Our 10-year Vision” by promoting CX through “SX / DX” and “Business Portfolio Transformation”.
 We can achieve “Customer Experience” by implementing “Corporate Transformation”.

External Environment

Medium- to Long-termManagement Direction

Megatrends

CX（Corporate Transformation / Customer Experience）

Climate Change
Expansion and
Evolution ofTechnology

SX(Sustainability
Transformation)

Business
Portfolio
Transformation

Demographics
Wealth Disparities

With/Post COVID-19

DX

Our 10-year Vision

Geopolitics
and Economy(Digital
Transformation)

Economic Security

27Medium- to Long-term Management Direction: Implementing CX
CX(Corporate Transformation / Customer Experience)

SX / DX

Business Portfolio Transformation“Developing” new businesses
 Develop new businesses and domains
and create new revenue sources byutilizing stable cash flows and the wideranging customer base of existing
businesses.

I
S
X

Achieve “co-existence and co-prosperity
with environmental and social values”
and “sustainable growth” through efforts
for materiality and solid management
base.

Shift existing business to high valueadded services
 Shift to high value-added services bymaintaining and expanding the customer
base of existing businesses and increase
returns by improving customer
experience.

II

Achieve “creation and qualitative
D improvement of customer value” by
X utilizing data and digital technologies andmaking strategic investments.

Enhance profitability and efficiency of
existing businesses Enhance profitability and efficiency of
existing businesses that create stable
cash flows.

III

28

Materiality of MHC Group
Materiality

Why the Group Treats as Highly Material Challenges(1)

Promote a
DecarbonizedSociety Efforts to realize a decarbonized society have been globally recognized as an urgent issue, and theGroup can significantly contribute to solving this challenge through its services and solutions, such as
renewable energy investment and EV promotion.
 The impact on the business side is large and significant, involving matters including distinguishingactivities that go against the social issues.

(2)

Realize theCircular
Economy The Group aims to contribute to creating a circular economy by reducing waste, not only within theGroup but also in society through maximizing the potential of assets. As a leader in the leasing
industry, the Group believes this issue is highly material.
 The Group can also contribute to realizing a sustainable and prosperous society throughstrengthening the collaboration between partners.

(3)

Establish Resilient
SocialInfrastructure The Group recognizes that the business has many opportunities to support infrastructure projects inJapan that require repair and rebuilding, as well as the development of infrastructure and creation ofsmart cities in emerging countries with active collaboration between various partners.
 The group will contribute to the diversification, enhancement and optimization of the business throughestablishing systems and providing services for supporting the collaboration between companies.

(4)

Realize HealthyLifestyles that
Promote Positive
Wellbeing It is vital for stakeholders that the Group recognizes the importance of health, safety, and physical andmental wellbeing for realizing a prosperous future.
 Valuable human resources are key to the value and trust in our corporate activities. Improving
employee motivation, acquiring top talent, and similar actions are highly important.

(5)

Create Businesses
Utilizing the Latest
Technologies

 Both financing for the purpose of the digital transformation of customers and using internal digitaltechnologies to increase the efficiency for this promote the development for new business models.
 The Group identifies this for highly material opportunities for diversified and innovative businesscreation, including establishing supply chains utilizing alternative energies.

(6)

Collaborate with
Partners Locallyand Globally Social issues differ by country and region. The Group should create synergies with local partners andfind new opportunities inside and outside of Japan, meeting individual needs through communitybased efforts.
 The Group can realize mutual benefits in developing society by utilizing its integrated capabilities.

How Related to SDGs

29

V. Appendix

30

PMI Progress
 PMI progressed smoothly in the first year after the business integration.
 In the second year, we establish rules and frameworks in relation to management of organizations, businesses, and human resources
across the company.
Areas

Management
Resource
Synergy

Progress in FYE3/2022

Synergy Measures for FYE3/2023

 Completed the replacement of the services and systems that had
been used in HC before the business integration with thealternatives

 Establish and unify HR management systems

 Established operational processes and system infrastructures

 Instill the consolidated management philosophy

 Established the consolidated management philosophy

 Start the formulation of a new medium-term IT plan and DX
strategy including the next-generation system concept

 Implemented organizational changes (completed the integrationof Corporate Center departments)

 Integrate and abolish organizations, etc. on a consolidated basis

 Held lively discussions in each sub working group such as
Domestic Sales Working Group and Overseas Working Group
Sales
Synergy Created synergy measures and ideas by promoting
understanding of MHC Group businesses through internalorientation sessions and communication measures for products
and businesses
 Established evaluation systems to expand business synergy

 Strengthen the business promotion frameworks
 Cross-selling through sales collaboration on a global basis
 Implement synergy measures formulated in each sub workinggroup Integrated sales organizations under each division
 Completed the acquisition of CAI International, a U.S. marine
container leasing company
Investment
Synergy Established M&A Advisory Gr. for the purpose of enhancing thepromotional framework for strategic investment deals
 Establish and implement investment strategies utilizing the capital buffer (such as operating the Investment Strategy Committee)

 Continue strategic investments while firmly maintaining the balance between offense (strategic resource allocation) and defense(risk management)

31

Focused Business Domains
 As core pillars of sustainable growth, we have positioned “Social Infrastructure & Life”, “Environment & Energy”, “Sales
Finance”, “Mobility”, and “Global Assets” as focused business domains and advanced asset business has been developedwith 7 segments* (2 units and 5 business divisions) below.
 We contribute to a prosperous and sustainable future by creating social value through maximizing the potential of assets.

Focused Business Domains
Social Infrastructure &Life

Targets

 Target: Social infrastructure
related to industrial
infrastructure/lifestyles
 Provide value toward therealization of more
prosperous lives byimplementing real estate
financing, business
operation, and social
infrastructure investment

Environment &EnergySales Finance Target: All aspects of energy  Target: Assets for businesscreation, energy storage,that underpins economicand energy conservation
activity (e.g. industrial(mainly renewable energy)
machinery,
telecommunications
 Develop joint business withequipment, OA equipment)
strategic partners in addition
to project investment andfinancing

Mobility

Global Assets

 Target: Automobile leases
and advanced mobility
services business Target: High-added-value
assets that exhibit highliquidity and value
throughout the world

 Achieve advancements todeliver data-driven solutions

 Accelerate labor-saving andstreamlining throughdigitalization

 Promote diverse asset
business based on
operating leases

Segments

Customer Solutions
Global Business
Environment, Energy & Infrastructure
Real Estate

Mobility

Aviation
Logistics* Segments which we plan to change from 1Q FYE3/2023 (refer to page 18 for details)

32

Major Topics in FYE3/2022
Customer BusinessAccount Solution

Vendor Solution

LIFE

Real Estate

Released in
May 2021

Environment & Renewable Energy

Aviation

Logistics

Mobility

OthersHead Office

Topics Acquired shares of a wind power company in Vietnam and entered the Vietnam wind power market
 Chosen as the undertaker of the PFI project “Shimonoseki City New General Gymnasium Construction”

July 2021

 Completed the construction of “Tokorozawa Kita-Iwaoka Solar Power Plant” which engages in solar sharing to do both providing electricity toTokorozawa City, Saitama Prefecture and cultivating crops Completed the construction of “CPD Hirakata”, a logistics facility for multiple tenants in Hirakata City, Osaka Prefecture Acquired stakes of the solar power generation project in California, U.S.

September 2021
October 2021

 Started R&D to build robot-friendly environments with Mori Trust, SoftBank Robotics, and Octa Robotics
 Invested in Universal Hydrogen Co., a start-up developing modular capsules for hydrogen storage and the powertrain for hydrogen-powered aircraftin California, U.S.
 Engine Lease Finance (ELF) purchased 25 new-generation fuel-efficient aircraft engines from Pratt & Whitney

November 2021

 Completed the acquisition of CAI International, a U.S. leading marine container leasing company
 Concluded a joint venture agreement with Kasumigaseki Capital on a logistics facility development project to promote the development of “LOGIFLAG”, a logistics facility focused on SDGs and ESG

December 2021

 Chosen as the undertaker of the PFI project “Tegarayama Sports Facility Construction (Himeji City)” Our auto leasing subsidiaries, Mitsubishi HC Capital Auto Lease and Mitsubishi Auto Leasing concluded a basic agreement on business integration

March 2022

 Concluded a partnership agreement for digitalization acceleration with Tamagawa Village of Fukushima Prefecture, NTT Data, and HitachiWind Power Farmin Vietnam

Tokorozawa Kita-Iwaoka
Solar Power Plant

Marine container (image)“LOGI FLAG” (image)

Tegarayama Sports
Facility

33

Definitional Changes in FYE3/2022
 In FYE3/2022, we have changed the definitions and accounting methods as follows, and made retroactive adjustments on some items.
Items Changed (Former Name)

AppliedCompany

Retroactive
Adjustment

Details of Definitional Changes

N/A

Divisional Assets: “Operating assets” + “equity-method investments”
Segment Assets: “Operating assets” + “equity-method investments” + “goodwill” + “investment
securities, etc.”

Applied

Before: In HC, all contract amounts were posted as “volume of business”
After: Posting only the principals out of contract amounts as “new transactions volume”
Before: Lump-sum recognition of sales→ After: Split recognition of sales
Before: Handle as finance for the accounting→ After: Handle as leasing and makepurposeadjustment for taxable income
Before: Lump-sum posting at issuance timing → After: Split posting over redemption period

Applied

Before: MUL output = regardless of the scope of consolidated accounting of investee companies,
output is divided on a pro rata basis according to the equity ownership
HC output = output according to the scope of consolidated accounting of investee
companies
1. Consolidated subsidiaries: count 100% output
2. Equity-method affiliates: divide on a pro rata basis according to the equity ownership
3. Other investee companies: no output is counted
After: Regardless of the scope of consolidated accounting of investee companies, total output
is divided on a pro rata basis according to the equity ownership.

1

Segment Assets (Divisional Assets)

MHC

2

New Transactions Volume (Volume of Business)HC

3

Posting of Re-leasing Sales

4

Handling of Lease Finance5

Posting of Corporate Bond Issuance Expense

6

MUL

Calculation Method of Output Based on the Equity
Ownership in the Environment and Renewable Energy
Segment

MHC

Impact of Retroactive Adjustment in FYE3/2021(Million Yen)
New Transactions Volume(Volume of Business)※For Item “2” in the table above

Item

Total

PL Items※For Items 3, 4, 5 in the table above

Revenues
Gross Profit
Recurring Income
Net Income

BS Items※For Items 3, 4, 5 in the table above

AppliedCompanyHC

FYE3/2021
Before Adjustment(Volume of business)
1,788,606

After Adjustment(New transactions volume)
1,258,267

Impact of Adjustment-530,338

MUL

894,342
160,581
65,00255,330947,658
160,483
64,96855,314+53,315
-97
-34
-15

Total Equity
Total Assets

MUL

821,233
6,009,831

817,906
6,014,896-3,327+5,065

Output Based on the Equity Ownership Total Output※For Item “6” in the table above
Wind Power

MHC

1,206MW298MW

1,136MW
228MW

-69MW
-69MW

34

Segment Profit (by Quarter)
FYE3/2021

FYE3/2022

Notes for FYE3/2022(Pre-tax Basis)(Billion Yen)

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

QOQ YOY

1

Customer Business

4.0

5.7

7.6

7.9

22.6

5.0

5.1

0.6

-4.4

-7.3

2

Account Solution

3.4

5.1

5.6

5.7

6.8

6.5

7.6

5.7

-1.9

0.0

3

Vendor Solution

1.0

1.1

1.1

0.8

0.9

0.8

0.6

0.5

-0.1

-0.2

-

4

LIFE

0.8

0.6

1.4

1.2

1.1

1.0

1.9

0.7

-1.1

-0.4

(3Q) Gains on sales of assets held: approx. JPY 1.0Bn (+)

5

Real Estate

9.1

5.4

7.2

6.2

2.7

4.3

4.0

7.9

+3.9

+1.7

6

Environment &Renewable Energy(1Q) Sale of strategic shareholdings: approx. JPY27.0Bn (+)(4Q) Major credit costs: approx. JPY4.0Bn (-)-(2Q) Gains on sales of assets held: approx. JPY 2.0Bn (+)(3Q) Gains on sales of assets held: approx. JPY 2.0Bn (+)(4Q) Gains on sales of assets held: approx. JPY 9.0Bn (+)
2.1

1.4

1.1

2.2

1.4

1.7

1.1

2.6

+1.4

+0.3

(4Q) Gains on sales of assets held: approx. JPY 3.0Bn (+)(1Q) Expenses in relation to modification of terms for certain
existing lease contracts: approx. JPY 2.0Bn (-)
Foreign exchange losses in JOLCO: approx. JPY 2.0Bn (-)

7

Aviation

3.1

0.0

1.3

-1.8

-2.4

6.6

-1.8

3.3

+5.2

+5.1

(2Q) Gains on sales of certain receivables from bankrupt debtors:
approx. JPY 7.0Bn (+)(3Q) Impairment loss on owned aircraft: approx. JPY 3.0Bn (-)(4Q) Gains on sales of assets held: approx. JPY 3.0Bn (+)(2Q) Acquisition cost of CAI: JPY0.7Bn (-)
8

Logistics

0.0

0.3

0.4

1.1

0.6

1.4

-0.6

1.4

+2.1

+0.2

(3Q) Acquisition cost of CAI: JPY0.8Bn (-)
Reconfiguration of portfolio in railway freight car: approx.
JPY2.0Bn (-)(4Q) Reconfiguration of portfolio in railway freight car: approx.
JPY3.0Bn (-)

9

Mobility

0.2

0.3

0.1

0.0

0.5

0.4

0.6

0.2

-0.3

+0.2

-

10

Others

-0.1

0.0

0.1

-0.3

-0.2

-0.6

-3.0

0.5

+3.5

+0.8

(3Q) Infrastructure-related credit costs: approx. JPY4.0Bn (-)

11

Adjustments

-3.2

-4.1

-0.7

1.1

-1.5

0.1

-0.4

-0.3

+0.1

-1.4

-

12

Total Segment Profit

20.6

16.2

25.8

24.4

32.7

27.7

15.2

23.6

+8.3

-0.7

35

New Transactions Volume by Segment(Billion Yen)

FYE3/2021

FYE3/2022

YOY Change

YOY Change(%)

1

Customer Business

587.2

592.2

+5.0

+0.9%

2

Account Solution

866.7

1,092.5+225.7+26.0%

3

Vendor Solution

131.5

132.7

+1.2

+1.0%

4

LIFE

201.3

155.2

-46.0

-22.9%

5

Real Estate

146.4

130.1

-16.3

-11.1%

6

Environment & Renewable
Energy

42.5

31.3

-11.2

-26.3%

7

Aviation

106.0

181.3

+75.3

+71.0%

8

Logistics

75.1

78.0

+2.8

+3.8%

9

Mobility

48.0

55.7

+7.6

+16.0%

10

Others

56.5

58.5

+1.9

+3.5%

11

Total New Transactions
Volume2,261.4

2,507.8

246.3+10.9%

36

Credit Costs by Segment(Billion Yen)

FYE3/2021

FYE3/2022

YOY Change

1

Customer Business

6.6

8.8

+2.1

2

Account Solution

11.2

10.2

-0.9

3

Vendor Solution

0.2

0.6

+0.4

4

LIFE

0.0

0.0

0.0

5

Real Estate

0.0

0.5

+0.6

6

Environment & Renewable
Energy

0.0

0.1

+0.1

7

Aviation

8.8

9.7

+0.9

8

Logistics

-0.2

-0.1

0.0

9

Mobility

0.1

0.1

0.0

10

Others

0.3

5.4

+5.1

11

Adjustments

-1.2

-0.3

+0.8

12

Total Credit Costs

25.7

35.2

+9.4

37

Financial Performance: Profit & Loss Statement
FYE3/2021(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

MUL*1 (a)947,658
787,174
62,370160,483
98,16640,47342,59815,09562,31664,96818,457242
55,314-

HC*2 (b)766,233
630,891
30,022
135,341
99,60750,53836,564
12,50435,73440,451
2,133
56
31,852-

FYE3/2022
MHC*3 (a+b)
1,713,891
1,418,066
92,392295,825
197,774
91,011
79,162
27,59998,051
105,419
20,591
299
87,166-MHC
1,765,559+3.0%
1,430,898+0.9%
77,493-16.1%
334,661+13.1%
220,569+11.5%
99,286+9.1%
83,806+5.9%
37,477+35.8%
114,092+16.4%
117,239+11.2%
30,399+47.6%
388+29.8%
99,401+14.0%(Note) Percentage figures (%) in the lower column are YOY (results in FYE3/2022 are vs. those of MHC (a+b) in FYE3/2021)*1 Retroactively adjusted figures along with the change of the accounting method (refer to page 34 for details)*2 Figures for IFRS basis converted into J-GAAP basis in a simplified manner, which are presented as reference values*3 Simple sums

38

Financial Performance: Balance Sheet, etc.
FYE3/2022*1

FYE3/2021(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 Assets

11

Equity Ratio

12

ROE*5

13

ROA*5

MUL*2 (a)294,241-36.9%
817,906+2.8%
6,014,896-4.4%
5,336,681-2.8%
5,067,292-3.5%
116,078+29.0%
153,309+0.4%
39,269+59.0%
22,501+62.7%
16,767+54.4%
13.4%+1.1pt7.0%
0.9%-

HC*3 (b)MHC*4 (a+b)*6309,080
432,3093,715,130*6
3,268,195
3,192,331
24,21351,65056,27435,56420,709
11.2%
-

MHC
*6

603,3211,250,216
9,730,027*6
8,604,876
8,259,624
140,291
204,960
95,54358,06637,476
12.5%-(Note) Percentage figures (%) in the lower column are YOY (results in FYE3/2022 are vs. those of MHC (a+b) in FYE3/2021)*1 Adjustments were made upon the business integration, such as the evaluation of HC’s assets and liabilities at market value and acquisition of MUL shares held by HC*2 Retroactively adjusted figures along with the change of the accounting method (refer to page 34 for details)*3 Figures for IFRS basis converted into J-GAAP basis in a simplified manner, which are presented as reference values*4 Simple sums
*5 Based on net income*6 Revised the figure in 4Q FYE3/2022

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%+0.2pt
8.0%
1.0%
-

39

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

MUL*2 (a)4,634,956-6.0%2,870,347+0.2%
1,764,608-14.6%
434,171-43.0%
106,230-21.8%
1,224,206+4.7%

FYE3/2021
HC*3 (b)2,998,879*5
1,323,580*5
1,675,299
209,641
478,334
987,323-

MHC*4 (a+b)
7,633,836*5
4,193,928*5
3,439,908
643,812584,565
2,211,530-

FYE3/2022*1
MHC
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%

38.1%
70.9%
40.5%
-

55.9%*5
60.6%*5
47.2%*5-45.1%
66.8%*5
43.1%
-

44.0%
-1.1pt65.6%-1.2pt49.4%+6.3pt(Note) Percentage figures (%) in the lower column are YOY (results in FYE3/2022 are vs. those of MHC (a+b) in FYE3/2021)*1 Adjustments were made upon the business integration, such as the evaluation of HC’s assets*3 Figures for IFRS basis converted intoand liabilities at market value and acquisition of MUL shares held by HC
J-GAAP basis in a simplified manner,*2 Retroactively adjusted figures along with the change of the accounting method (refer to page 34 for details)
which are presented as reference values*4 Simple sums
*5 Revised the figure in
4Q FYE3/2022

Exchange Rate Applied to Financial Results of Major Overseas Subsidiaries*6
Major Overseas MUL
Subsidiaries
FYE3/2021
FYE3/2022
23
24

Exchange Rate Applied to PL
Exchange Rate Applied to BS

Major Overseas HC Subsidiaries
FYE3/2021

FYE3/2022

1$＝JPY106.82

1$＝JPY109.80

1£＝JPY138.68

1$＝JPY106.06

1£＝JPY153.56

1$＝JPY112.38

1$＝JPY103.50

1$＝JPY115.02

1£＝JPY152.23

1$＝JPY110.71

1£＝JPY160.89

1$＝JPY122.39*6 Major overseas MUL subsidiaries: Average rates during January through December applied to PL
Exchange rate as of the end of December is applied to BS
Major overseas HC subsidiaries: Average rates during April through March applied to PL
Exchange rate as of the end of March is applied to BS

40

Major Companies (1)Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/
Domestic Business Branches-

Mitsubishi HC Business Lease

Major Companies

Consolidated/
Equity-method

Main BusinessLeasing, etc..

Mitsubishi HC Capital
America

Consolidated

Leasing and financial business

Consolidated

Sales Finance

Mitsubishi HC Capital(U.S.A.)

Consolidated

Leasing, etc.

DFL Lease

Consolidated

Leasing, etc.

ENGS Commercial
Finance*4<ENGS>

Consolidated

Sales finance, etc.

Shutoken Leasing

Consolidated

Leasing, etc.
Leasing and financial business

Consolidated

Rental and leasing, etc.

Mitsubishi HC Capital
Canada Leasing

Consolidated

DRS
Sekisui Leasing

Consolidated

Leasing, etc.

Mitsubishi HC Capital
Leasing (Beijing)

Consolidated

Leasing, etc.

Mitsubishi HC Capital Property

Consolidated

Real estate leasing

Mitsubishi HC Capital(Shanghai)

Consolidated

Leasing, etc.

Mitsubishi HC Capital Community

Consolidated

Real estate development andmanagement, leasing

Mitsubishi HC Capital(Hong Kong)

Consolidated

Leasing, etc.

Japan Medical Lease

Consolidated

Medical equipment andreal estate leasing

MHC Capital & Finance(Hong Kong)

Consolidated

Leasing, etc.

Healthcare Management Partners

Consolidated

Management of fund to support
management specializing in the
medical and long-term care fields

Mitsubishi HC Capital Asia
Pacific

Consolidated

Leasing, etc.

U-MACHINE

Consolidated

Purchase and sale of used goods

Mitsubishi HC Capital(Singapore)

Consolidated

Leasing, etc.

MHC Reuse Services

Consolidated

Purchase and sale of used goods

Mitsubishi HC Capital and
Finance Indonesia

Consolidated

Leasing, etc.

Mitsubishi HC Capital UK

Consolidated

Leasing and financial business

Arthaasia FinanceConsolidated

Leasing and financial business

MHC Mobility [Germany] *3

Consolidated

Auto leasing and rental

Bangkok Mitsubishi HC
CapitalConsolidated

Leasing, etc.

MHC Mobility [Netherlands] *2

Consolidated

Auto leasing
Leasing, etc.

Consolidated

Auto leasing

Mitsubishi HC Capital(Thailand)

Consolidated

MHC Mobility [Poland] *2
Mobility Mixx

Consolidated

MaaS*3 business

Mitsubishi HC Capital
Malaysia

Consolidated

Leasing, etc.

GlobalBusiness

EuropeAmericas

Segment*1

China Region

Customer
Solution

Major Companies

GlobalBusiness

ASEAN

Segment*1(Note) Company names are as of May 16, 2022 and words inside of “< >” denote abbreviations of companies*1 New reporting segments from 1Q FYE3/2023 (Planned) (refer to page 18 for details)*2 Location*3 Abbreviation of “Mobility as a Service”*4 Operating company of ENGS Holdings Inc

41

Major Companies (2)Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/
Environment & Energy Business
Department-

Investment in environment andenergy-related companies

Mitsubishi HC Capital/
Environment & Energy Sales
Department-

Environment-related andrenewable energy business-

Renewable energy andinfrastructure business

Consolidated

Operation and asset
management of renewableenergy business

HSE

Consolidated

Wind power generation business

HGE

Consolidated

Solar power generation businessJapan Infrastructure Initiative <JII>

Consolidated

Infrastructure investment andloan

Segment*

Major Companies

Mitsubishi HC Capital/
Infrastructure Business
Environment, Department
Energy &Infrastructure
Mitsubishi HC Capital Energy

Mitsubishi HC Capital/
Aviation Business Department

Aviation-

Segment*

Major Companies

Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/
Real Estate Business Department-

Real estate securitization finance

Mitsubishi HC Capital Realty

Consolidated

Real estate revitalization
investment

Mitsubishi HC Capital Realty
Advisors

Consolidated

Asset management services

Diamond Asset FinanceConsolidated

Real estate rental and other realestate financeMiyuki Building

Consolidated

Real estate rental

Mitsubishi HC Capital Realty(U.S.A.)

Consolidated

Overseas (North America)
securitization financeCenter Point Development <CPD>

Equity-method

Asset management services forlogistics real estate

Logi Flag Development

Equity-method

Asset management services forlogistics real estate-

Investment in mobility-relatedcompanies

Mitsubishi HC Capital Auto Lease

Consolidated

Auto leasing

Takari Kokoh Sejahtera

Consolidated

Auto leasing

Mitsubishi Auto Leasing

Equity-method

Auto leasing

Real Estate

Japanese Operating Lease withcall option, etc.

Jackson Square Aviation <JSA>

Consolidated

Aircraft leasing

Engine Lease Finance <ELF>

Consolidated

Aircraft engine leasing, part-out

Mitsubishi HC Capital/
Logistics Business Department-

Ship finance

CAI International <CAI>

Consolidated

Marine container leasing

Beacon Intermodal Leasing <BIL>

Consolidated

Marine container leasing

PNW Railcars

Consolidated

Railcar leasing

Mitsubishi HC Capital/
Mobility Business Department

Mobility

Logistics(Note) Company names are as of May 16, 2022 and words inside of “< >” denote abbreviations of companies* New reporting segments from 1Q FYE3/2023 (Planned) (refer to page 18 for details)

42Inquiries

Corporate Communications Department
I

Inquiries
TEL： +81 3-6865-3002

II

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

43Legal Disclaimer
 This presentation contains forward-looking statements regarding estimations, forecasts, targets and plansin relation to the results of operations, financial conditions and other overall management of Mitsubishi HC
Capital Inc. and/or its group companies (collectively, the “Group”).

 These forward-looking statements are inherently subject to a number of risks and uncertainties that could
cause the Group’s actual results, performance, achievements, financial position etc. to differ materially fromthe 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 thetime of publication. Accordingly, due to various risks and uncertainties, the statements are not a guaranteeof future performance or developments. 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 Amount less than one unit is omitted in this presentation, which may cause fraction error in the total
amount. We undertake no obligation to update or correct any forward-looking statements after the date ofthis presentation. The information set forth in this presentation is subject to change without notice.

 This presentation is not intended to solicit, offer, sell or market securities 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.
 This presentation is made in Japanese and translated into English. The Japanese text is the original andthe English text for reference purposes. If there is any conflict or inconsistency between these two texts, theJapanese text shall prevail.

44