Consolidated Financial Highlights for the Third Quarter Ended December 31, 2023
[Based on J-GAAP]
February 9, 2024
Company Name:
Mitsubishi HC Capital Inc.
Stock Exchange Listed on: Tokyo (Prime Market), Nagoya (Premier Market)
Company Code:8593
URL: https://www.mitsubishi-hc-capital.com/english/
Representative:
Taiju Hisai, Representative Director, President & CEO
For Inquiry:
Haruhiko Sato, Director, Managing Executive Officer TEL: +81-3-6865-3002
Scheduled Date of Submission of Financial Reports:
February 9, 2024
Scheduled Commencement of Dividend Payment:－
Supplemental Material for Financial Results:
Available
Holding of Financial Results Meeting:No(Amounts of less than one million yen are rounded down)
1. Consolidated Results for the Third Quarter Ended December 31, 2023 (April 1, 2023 – December 31, 2023)(1) Consolidated Operating Results (Cumulative)(% represents the change from the same period in the previous fiscal year)

Revenues

Operating income

Net income attributableto owners of the parent

Recurring income

For the nine months ended(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

December 31, 2023

1,425,097

1.0

101,644(4.5)

104,301(4.9)

80,581(6.2)

December 31, 2022

1,410,472

7.4

106,38430.3

109,666

33.3

85,927

13.4(Note) Comprehensive income:For the nine months ended December 31, 2023:
For the nine months ended December 31, 2022:¥185,544 million (33.4%)¥278,478 million 161.8%

Dilutedearnings per share

Earnings per share

For the nine months ended

(Yen)

(Yen)

December 31, 2023

56.14

55.99

December 31, 2022

59.84

59.66

(2) Consolidated Financial Position
Total assets

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

Total equity

Equity ratio(Millions of yen)

(Millions of yen)%

11,256,396
10,726,196

1,673,206
1,551,029

14.7
14.3

As of December 31, 2023:
As of March 31, 2023:¥1,650,590 million¥1,528,773 million

2. Dividends
Dividends per share
1st Quarter end

For the fiscal year

2nd Quarter end

3rd Quarter end

Fiscal year - end

Annual

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

ended March 31, 2023

－

15.00

－

18.00

33.00

ending March 31, 2024

－

18.00

－
19.00

37.00

ending March 31, 2024
(Forecast)(Note) Changes from the latest released dividend forecast: No

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Year-on-year change %)Net income attributable toowners of the parent
Full year

Earnings per share(Millions of yen)

%

(Yen)

120,000

3.2

83.62

(Note) Changes from the latest released financial forecast: No

1

* Notes(1) Significant changes in subsidiaries during the period(Change of specific subsidiaries accompanying the change of scope of consolidation):

Yes

Excluded: Japan Infrastructure Initiative Company Limited(2) Application of accounting treatments specific to the preparation of the quarterly
consolidated financial statements:
Yes(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to the
Quarterly Consolidated Financial Statements (Application of accounting treatments specific to the preparationof the quarterly consolidated financial statements)” on page 16.
(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions(ⅰ) Changes in accounting policies with revision of accounting standards, etc.

:

Yes(ⅱ) Changes in accounting policies other than (i) above:No(ⅲ) Changes in accounting estimates:No(ⅳ) Restatement of revisions:
No(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to
the Quarterly Consolidated Financial Statements (Changes in accounting policies)” on page 16.
(4) Number of outstanding shares (common shares)(ⅰ) Number of outstanding
shares (including
treasury shares)

As of December 31, 2023 1,466,912,244 shares

As of March 31, 2023

1,466,912,244 shares(ⅱ) Number of treasury
shares

As of December 31, 2023

32,610,419 shares

As of March 31, 2023

30,718,231 shares(ⅲ) Weighted average
number of shares
outstanding

For the nine months ended
1,435,280,969 shares
December 31, 2023

For the nine months ended
1,436,009,363 shares
December 31, 2022

(Note) During the three months ended September 30, 2023, Mitsubishi HC Capital Inc. (“Company”) introduced
a performance-based stock compensation plan. The number of treasury shares includes the Company’s
shares held by a trust under the plan (2,702,173 shares as of December 31, 2023). Also, the number oftreasury shares excluded in calculating the weighted average number of shares outstanding includes theCompany’s shares held by a trust under the plan (1,502,123 shares as of December 31, 2023).

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

2

Contents
1. Qualitative Information concerning Financial Results for the Third Quarter Ended December 31, 2023

4(1) Summary of Operating Results

4(2) Summary of Consolidated Financial Position

9(3) Explanation on Future Forecast Information including Consolidated Financial Forecast

9

2. Quarterly Consolidated Financial Statements and Major Notes

10(1) Quarterly Consolidated Balance Sheets

10(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

12

Quarterly Consolidated Statements of Income
For the nine months ended December 31, 2023 and 2022

12

Quarterly Consolidated Statements of Comprehensive Income
For the nine months ended December 31, 2023 and 2022
(3) Notes to the Quarterly Consolidated Financial Statements

13
14(Segment information)

14(Notes concerning going concern assumption)

16(Notes concerning significant changes in shareholders’ equity)

16(Application of accounting treatments specific to the preparation of the quarterly consolidated
financial statements)

16(Changes in accounting policies)

16(Additional information)

16(Significant subsequent events)

173

1. Qualitative Information concerning Financial Results for the Third Quarter Ended December 31, 2023
(1) Summary of Operating Results1) Overview of Financial Results, etc.
Quarterly net income attributable to owners of the parent decreased by ¥5.3 billion year on year to ¥80.5 billion.
New transactions volume and segment assets increased.
・Quarterly net income attributable to owners of the parent for the nine months ended December 31, 2023
decreased by ¥5.3 billion, or 6.2% year on year, to ¥80.5 billion and the amount of a decrease in net income
was declined compared with the first half mainly because the Aviation segment has been steadily recoveringand the Logistics segment progressed favorably compared with the initial plan, despite losses in U.S. projects
in the Real Estate segment and impairment losses in the Environment & Energy segment in the first half.
・Further, new transactions volume for the nine months ended December 31, 2023 increased by ¥250.5 billion,or 12.8% year on year, to ¥2,210.3 billion, and segment assets as of December 31, 2023 also increased by¥657.4 billion, or 6.8%, to ¥10,290.4 billion from March 31, 2023, thanks to an increase in new transactions
continuing from the first half in the Aviation, Real Estate and Customer Solutions segments.
The financial forecast for the fiscal year ending March 31, 2024 (net income attributable to owners of the parentof ¥120.0 billion) remains unchanged.
・The progress made toward the forecast for the fiscal year ending March 31, 2024 (net income attributable toowners of the parent of ¥120.0 billion) during the nine months ended December 31, 2023 was 67.2%.
・Despite the progress, the consolidated financial forecast remains unchanged, because the Logistics segment
has been progressing favorably compared with the initial plan, the profits in the Aviation segment are planned
to be weighted toward the second half and will exceed the initial plan, and we expect to record large gains onsales of owned assets in the Real Estate and Environment & Energy segments.
Decided to invest in a European environmental energy business company toward the evolution and layering ofbusiness model.
・We have decided to invest (approx. ¥110.0 billion) in European Energy A/S, a Danish company developing
and operating renewable and next generation energy business mainly in Europe. We will acquire 20% of its
outstanding shares and make it our equity-method affiliate.
・Toward the evolution and layering of business models in the Medium-term Management Plan (2025 MTMP),
we will accelerate initiatives to enhance development functions in the renewable energy business, which isthe core strategy of the Environment & Energy business.
(Billions of yen)
For the nine months
For the nine months
ended December 31, 2022 ended December 31, 2023

Change (%)

Revenues

1,410.4

1,425.0

1.0

Gross profit

264.6

270.0

2.0

Operating income

106.3

101.6

(4.5)

Recurring income

109.6

104.3

(4.9)

Quarterly net income
attributable to ownersof the parent

85.9

80.5

(6.2)

4

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

Major business topics
Apr. 2023:

 Announced the conclusion of a virtual PPA (an agreement to transfer non-fossil certificates
related to renewable electricity) between Mitsubishi HC Capital Energy Inc., engaged in the
renewable energy generation business, and Tokyo Metro Co., Ltd.
 Made CenterPoint Development Inc., a group company engaged in development of logistics
facilities and asset management business specializing in logistics facilities, a wholly-owned
subsidiary.

May 2023:

 HSE Ltd., engaged in renewable energy power generation business, announced the launch of
the renewable energy aggregation business whereby the company predicts renewable energy
power generation and prepares power generation plans as well as supply electricity and nonfossil value.

June 2023:  Announced the establishment of “Innovation Investment Fund” with a total of ¥10 billion of funds
available for investment in startups with an aim to promote creation of new services anddevelopment of new businesses (started operation in April 2023).
Aug. 2023:  Announced to start business operation in Silicon Valley in the U.S.A. to strengthen the businessintelligence function as part of the innovation initiatives.
Sep. 2023:  Mitsubishi HC Capital Energy Inc. and Mitsubishi Auto Leasing Corporation launched an
integrated service necessary for the introduction and operation of EVs, including the supply of
EVs and charging infrastructure as well as renewable energy as the power source.
 Announced the business alliance with Horizon Ocean Management, Ltd. with the aim ofstabilizing and improving efficiency of the O&M service (maintenance, inspection, and repair) in
the offshore wind power generation business.
 Announced the capital and business alliance with ZERO with the aim of contributing to the
reduction of food losses and CO2 emissions in Japan by promoting the introduction of an
unmanned vending machine (“fuubo,” a food loss reduction box).
Oct. 2023:

 Announced the capital and business alliance with Credit Engine Group, Inc. with the aim ofdeveloping and providing new services toward the digital transformation of value chain in theleasing industry.

5

Nov. 2023:

 Announced the business alliance with Lenovo Japan LLC and Mitsubishi UFJ Trust and Banking
Corporation with an aim to provide a comprehensive package service to support startups,
including PC subscription service.
 As part of the Business Portfolio Transformation toward Our 10-year Vision, we announced totransfer shares of our group company, DFL Lease Co., Ltd. and Shutoken Leasing Co., Ltd.
(completed the transfer in January 2024).
 Commissioned by METI, we launched a verification project using robots in logistics facilities
together with BIC CAMERA INC. and YAMAZEN CORPORATION.
 Started offering facial photo collection and authentication service on a subscription model with
TOPPAN Edge Inc.
 Signed a partnership agreement with AeroEdge Co., Ltd. manufacturing and selling aircraft
engine parts with an aim to enhance the partnership to accelerate DX and SDGs in the aviationindustry.

Dec. 2023:  Selected the first projects that passed the final review in the founder program (internal startup
program) of the Zero-Gravity Venture Lab, an initiative aimed at accelerating new businessdevelopment, and officially launched the projects toward the establishment of a company.
 Announced to start a trial for a preventive maintenance service for infrastructure using anearthworm-like in-pipe crawling robot “Sooha” offered by SoLARIS Inc.
Jan. 2024:

 Announced the capital and business alliance with MedUp, Inc. with an aim to support thebusiness improvement of healthcare facilities and to establish a sustainable community-based
integrated healthcare system.
 Decided to invest in European Energy A/S, a Danish company developing and operating
renewable and next generation energy business mainly in Europe, which is an area leading theway in decarbonization, with an aim to enhance and expand the Environment & Energy businesson a global scale.

Feb. 2024:

 Announced the launch of a joint venture for renewable energy generation based on a PPA
between the Group, TOKYU CORPORATION and TOKYU POWER SUPPLY CO.,LTD and theconclusion of a contract for the first project.

3) Operating results by reportable segments
Operating results by reportable segments were as follows.
Following the organizational changes effective April 1, 2023, the name of the reportable segment“Environment, Energy & Infrastructure” was changed to “Environment & Energy” from April 1, 2023.
(For details of new reportable segments, please refer to “2. Quarterly Consolidated Financial Statements andMajor Notes, (3) Notes to the Quarterly Consolidated Financial Statements (Segment information)” on page 14.)(Customer Solutions)
Segment profit decreased by ¥4.2 billion, or 14.9% year on year, to ¥24.5 billion mainly due to an increasein credit costs and absences of large gains on sales related to real estate leasing and insurance claim income
for a certain deal, both recorded in the nine months ended December 31, 2022.

6

(Global Business)
Segment profit decreased by ¥11.3 billion, or 42.3% year on year, to ¥15.5 billion mainly due to an absenceof gains on revaluation of securities recorded at a European subsidiary in the nine months ended December 31,
2022, an increase in operating expenses in subsidiaries mainly in Europe and the Americas, and an increase incredit costs in the Americas in line with the worsening market condition, despite the positive effects by adjusting
fiscal period associated with the reorganization of subsidiaries in the Americas and the business growth in theEuropean subsidiaries.
Effective April 1, 2023, we executed the business integration of three subsidiaries in the Americas having a
different fiscal year-end. While the surviving company’s fiscal year-end is March 31, the two merged companies’
fiscal year-end was December 31. Accordingly, results of the two merged companies for the period from January
1, 2023 to March 31, 2023 are also included in the consolidation for the nine months ended December 31, 2023,
resulting in a year-on-year increase in profit.
(Environment & Energy)
Segment profit decreased by ¥4.3 billion, or 52.0% year on year, to ¥3.9 billion mainly due to recording of
impairment losses on a solar power generation project and a decrease in profits from equity-method investments
despite a decrease in tax expenses as a result of recording deferred tax assets in relation to the absorption-typemerger of Japan Infrastructure Initiative Company Limited.
(Aviation)
Segment profit increased by ¥14.1 billion year on year to ¥14.2 billion mainly thanks to an increase in leasing
revenue, reversal of large credit costs, a decrease in impairment losses and a decrease in exchange revaluation
losses related to foreign currency-denominated borrowings in aircraft leasing transactions that our head officeis engaged in.
(Logistics)
Segment profit increased by ¥2.2 billion, or 18.1% year on year, to ¥14.5 billion mainly thanks to an increasein gains on sales of owned assets (mainly shipping).
(Real Estate)
Segment profit decreased by ¥1.3 billion, or 16.7% year on year, to ¥6.5 billion mainly due to recording oflosses in U.S. projects in line with the worsening real estate market and the negative effects of thedeconsolidation of Diamond Asset Finance Company Limited despite gains on step acquisitions recorded inrelation to making CenterPoint Development Inc. our wholly-owned subsidiary.
(Mobility)
Segment profit decreased by ¥0.9 billion, or 28.4% year on year, to ¥2.3 billion mainly due to the effects ofthe deconsolidation of Mitsubishi HC Capital Auto Lease Corporation.

7

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

Reportable segments

For the nine months
For the nine months
ended December 31, 2022 ended December 31, 2023

Change (%)

Customer Solutions

28.8

24.5

(14.9)

Global Business

26.9

15.5

(42.3)

Environment & Energy

8.2

3.9

(52.0)

Aviation

0.0

14.2

－

Logistics

12.3

14.5

18.1

Real Estate

7.8

6.5

(16.7)

Mobility

3.3

2.3(28.4)

Adjustments

(1.6)

(1.1)

－

Total

85.9

80.5

(6.2)

(Note) 1. Adjustments of segment profit consist mostly of adjustments of company-wide expenses included in selling, generaland administrative expenses not allocated to any reportable segments, and profit adjustments recorded by thepurchase method associated with the merger with Hitachi Capital Corporation.
2. Segment profit is equal to net income attributable to owners of the parent on the quarterly consolidated statements
of income.

Segment assets by reportable segments

Reportable segments(Billions of yen)
Change (%)

As of March 31, 2023

As of December 31, 2023

Customer Solutions

3,227.7

3,184.4(1.3)

Global Business

2,644.2

2,911.7

10.1

Environment & Energy

433.2

422.9

(2.4)

Aviation

1,640.2

2,007.6

22.4

Logistics

1,092.9

1,145.2

4.8

Real Estate

447.2

527.5

18.0

Mobility

41.4

51.3

24.1

Adjustments

105.8

39.3

(62.8)

Total

9,632.9

10,290.4

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

8(2) Summary of Financial Position
Compared to the figures as of March 31, 2023, total assets as of December 31, 2023 increased by ¥530.1
billion to ¥11,256.3 billion, total equity increased by ¥122.1 billion to ¥1,673.2 billion, and interest-bearing debt
(excluding lease obligations) increased by ¥268.8 billion to ¥8,504.9 billion.

(3) Explanation on Future Forecast Information including Consolidated Financial Forecast
The progress made toward the consolidated financial forecast announced on May 15, 2023 (net income
attributable to owners of the parent of ¥120.0 billion) during the nine months ended December 31, 2023 was
67.2%.
Despite the progress, the consolidated financial forecast for the year ending March 31, 2024 remains
unchanged, because the Logistics segment has been progressing favorably compared with the initial plan, theprofits in the Aviation segment are planned to be weighted toward the second half and will exceed the initialplan, and we expect to record large gains on sales of owned assets in the Real Estate and Environment &Energy segments.

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

10(Millions of yen)
For the nine months ended
December 31, 2023
(As of December 31, 2023)

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

421,631223,076
3,270,995
1,800,826
183,094
74,631
3,847
35,852
152,789(29,766)
6,136,980

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

3,906,121
96,373
4,002,495
221,574
18,4694,242,539

23,197

14,20991,497133,034
224,532
247,730

107,357
131,356
238,713
252,923

400,113
99,912
152,065(68,806)
583,284
4,459,922

417,659
109,024
157,944(64,761)
619,866
5,115,329

4,603
4,603
10,726,196

4,086
4,086
11,256,396

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

11(Millions of yen)
For the nine months ended
December 31, 2023
(As of December 31, 2023)

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

148,467
485,411610,104
954,854814,952

246,640

228,720

9,381
9,648
15,89017,151
8,728
11,750

2,255

1,837

272,437
3,512,353

382,9883,664,965

1,582,848
3,253,535

1,630,167
3,436,125357,662

344,591

110

123

－

390

6,463
12,055450,137
5,662,813
9,175,166

6,497
12,397
487,9315,918,224
9,583,189

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

33,196546,284
731,890(20,975)
1,290,395

14,817

17,30753,051
186,545
1,985

52,734
288,380
1,771

256,400

360,194

2,138
20,118
1,551,029
10,726,196

1,915
20,7001,673,206
11,256,396

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the nine months ended December 31, 2023 and 2022)

Revenues
Cost of revenues
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Other(Millions of yen)
For the nine months ended
For the nine months ended
December 31, 2022
December 31, 2023
(Ap ril 1, 20 22 – D ecem be r 31, 20 22) (Ap ril 1, 20 23 – D ecem be r 31, 20 23)
1,410,472
1,425,097
1,145,809
1,155,066
264,662
270,031
158,277
168,386
106,384
101,644

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Recurring income
Extraordinary income
Gain on sale of investment securities
Gain on step acquisitions
Gain on valuation of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries andassociates
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

12

1,350
1,211

3,410
1,829

8,579

6,516

6,768
17,9105,578
17,334

5,206
7,164
2,256
14,627
109,666

8,674
3,493
2,508
14,677104,301

1,990
－
7,228
9,218

3,709
4,822
－
8,531

370
2,201

294
－

－

168

2,572
116,31229,28187,0301,103
85,927463
112,369
30,951
81,418837
80,581

(Quarterly Consolidated Statements of Comprehensive Income)(For the nine months ended December 31, 2023 and 2022)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests(Millions of yen)
For the nine months ended
For the nine months ended
December 31, 2022
December 31, 2023
(Ap ril 1, 20 22 – D ecem be r 31, 20 22) (Ap ril 1, 20 23 – D ecem be r 31, 20 23)
87,03081,41813(1,844)2,443

42,816
133,889
1,299(2,956)
100,497(198)

15,287

4,341

191,447
278,478

104,126
185,544276,650

184,375

1,828

1,169

(3) Notes to the Quarterly Consolidated Financial Statements(Segment information)
1. Changes in reportable segments, etc.
Following the organizational changes effective April 1, 2023, the name of the reportable segment“Environment, Energy & Infrastructure” was changed to “Environment & Energy” from April 1, 2023.
The change was merely a name change, and there are no impacts on segmentation or figures of segment
information, etc.
Details of new reportable segments after the change of segment name are as follows.
Reportable segments

Main business description

Customer Solutions

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

Global Business

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

Environment & Energy

Renewable energy business, and environment related finance solution business

Aviation

Aircraft leasing business, and aircraft engine leasing business

Logistics

Marine container leasing business, and railway freight car leasing business

Real Estate

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

Mobility

Auto leasing business and supplementary services

The segment information for the nine months ended December 31, 2022 is presented under the new segment
name.

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2. Information on profit or losses by reportable segments
For the nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)

Reportable segments

Customer
Solutions

Segment profit

28,844GlobalEnvironment &Business
Energy26,952Aviation

Logistics

Real Estate

Mobility

78

12,302

7,822

3,301

8,291

(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note) 1
statements
of income(Note) 2(1,667)85,927(Note)1. Adjustments of segment profit consist mostly of adjustments of company-wide expenses included in selling, general andadministrative expenses not allocated to any reportable segments. It also includes profit adjustments of ¥1,967 million
related to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit is equal to net income attributable to owners of the parent on the quarterly consolidated statements ofincome.

For the nine months ended December 31, 2023 (April 1, 2023 to December 31, 2023)
Reportable segments

Customer
Solutions

Segment profit

24,553GlobalEnvironment &Business
EnergyAviation

Logistics

Real Estate

Mobility

15,55914,26914,525

6,519

2,362

3,983

(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note) 1
statements
of income(Note) 2(1,191)80,581(Note)1. Adjustments of segment profit consist mostly of adjustments of company-wide expenses included in selling, general andadministrative expenses not allocated to any reportable segments. It also includes profit adjustments of ¥1,070 million
related to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit is equal to net income attributable to owners of the parent on the quarterly consolidated statements ofincome.

3. Information on impairment losses on non-current assets or goodwill by reportable segments
For the nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)(Significant impairment losses on non-current assets)
The Aviation and Logistics segments recorded impairment losses on leased assets of ¥4,550 millionand ¥2,407 million, respectively.
(Significant changes in goodwill)
Not applicable
For the nine months ended December 31, 2023 (April 1, 2023 to December 31, 2023)(Significant impairment losses on non-current assets)
The Environment & Energy segment recorded impairment losses mainly on other operating assetsof ¥5,816 million, and the Aviation segment recorded impairment losses on leased assets of ¥2,666
million.

(Significant changes in goodwill)
The Real Estate segment recorded goodwill of ¥13,207 million associated with the acquisition of allshares of CenterPoint Development Inc.

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(Notes concerning going concern assumption)
Not applicable(Notes concerning significant changes in shareholders’ equity)
Not applicable(Application of accounting treatments specific to the preparation of the quarterly consolidated financial statements)
Tax expenses of the Company and its certain consolidated subsidiaries were calculated through multiplying
income before income taxes for the nine months ended December 31, 2023 by the reasonably estimated effective
tax rate (after tax effect accounting) applicable to income before income taxes for the year ending March 31, 2024.
(Changes in accounting policies)(Application of Accounting Standards Update (ASU) 2016-13 “Financial Instruments – Credit Losses”)
Certain overseas consolidated subsidiaries applied ASU 2016-13 “Financial Instruments – Credit Losses”
on April 1, 2023. As a result, allowance for doubtful accounts is recorded for financial assets in these overseas
consolidated subsidiaries by estimating the expected credit losses over the remaining life of the financial assets
at initial recognition.
As a result of this change, retained earnings in the quarterly consolidated financial statements as of April 1,
2023 decreased by ¥7,957 million.
(Additional information)(Performance-based stock compensation plan)
During the three months ended September 30, 2023, the Company introduced a performance-based stockcompensation plan as an incentive plan for the Company’s directors excluding those who are Audit &Supervisory Committee members (excluding non-executive directors and non-residents in Japan; hereinafter
the same applies) and executive officers, etc. (excluding non-residents in Japan; hereinafter directors andexecutive officers are collectively referred to as “Directors, etc.”)(1) Overview of the plan
The plan is a stock compensation plan under which the Company delivers and pays (“deliver”) the
Company’s shares and cash equivalent to the conversion value of the Company’s shares (“Company
Shares, etc.”) based on the attainment of the targeted performance indicators set out in the Company’s
MTMP to the Company’s Directors, etc. The Company entrusts money to a trust bank in advance to acquire
the Company’s shares to be delivered, and the trust bank uses the cash to acquire the Company’s shares.
Also, points are granted to Directors, etc. based on the share delivery rules established separately, and theCompany Shares, etc. are delivered to Directors, etc. based on the points.
(2) The Company’s shares remaining in the trust
The Company’s shares remaining in the trust are recorded as treasury shares in Equity at the carrying
amount at the trust. The carrying amount and the number of shares of these treasury shares as of December
31, 2023 are ¥2,335 million and 2,702 thousand shares, respectively.

16

(Significant subsequent events)(New associate accounted for by the equity method through share acquisition)
The Company will invest approximately €700 million in European Energy A/S (“European Energy”)(“Investment”), a Danish company developing and operating renewable and next generation energy businessmainly in Europe, in accordance with the resolution passed by the meeting of the Board of Directors held on
January 19, 2024, and signed an investment agreement. The Company will acquire 20% of outstanding sharesin European Energy. As a result, European Energy will become the Company’s equity-method affiliate.
1.

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

2.

3.

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

Renewable energy and next generation energy business(3)

Company size
(Year ended December
2022)

Consolidated net assets: €391 million
Consolidated total assets: €1,737 million

Schedule of the Investment
Scheduled to be executed during the three months ending March 31, 2024
(Note)

4.

The execution of the Investment is subject to approval by the competition authority in the relevant
countries and regions and conditions set out in the agreement.

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

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

Number of shares to betransferred

Outstanding share: Approximately 75 million shares(3)

Transfer price(4)

Number of shares held
after the transfer

Approximately €700 million(approximately ¥110.0 billion at the exchange rate of €1 =¥157.12)
Approximately 75 million shares(Number of voting rights: approximately 75 million)(Voting rights holding ratio: 20.0%)

17

5.

Method of funding and payment
The Company will acquire the shares of European Energy through its wholly-owned subsidiary inDenmark, MHC Energy Europe ApS, mainly by undertaking new shares privately issued and allocated by
European Energy. We plan to fund the Investment mainly with our own fund, borrowings and corporate bonds.

18