Consolidated Financial Highlights for the Year Ended March 31, 2023
[Based on J-GAAP]May 15, 2023
Company Name:
Mitsubishi HC Capital Inc.
Stock Exchange Listed on: Tokyo (Prime Market), Nagoya (Premier Market)
Company Code:8593
URL: https://www.mitsubishi-hc-capital.com/english/
Representative:
Taiju Hisai, Representative Director, President & CEO
For Inquiry:
Haruhiko Sato, Director, Managing Executive Officer TEL: +81-3-6865-3002
Date of General Meeting of Shareholder:
June 27, 2023
Scheduled Date of Submission of Securities Report:
June 27, 2023
Scheduled Commencement of Dividend Payment:
June 8, 2023
Supplemental Material for Financial Results:
Available
Holding of Financial Results Meeting:
Scheduled (for Institutional Investors and Analysts)(Amounts of less than one million yen are rounded down)
1. Consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(1) Consolidated Operating Results(% represents the change from the same period in the previous fiscal year)
Revenues

Operating income

Net income attributable toowners of the parent

Recurring income

For the fiscal year ended(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%March 31, 2023

1,896,231

7.4

138,72721.6

146,07624.6

116,241

16.9

March 31, 2022

1,765,559

86.3

114,092

83.1

117,23980.5

99,401

79.7(Note) 1. Comprehensive income:For the year ended March 31, 2023:¥265,136 million
51.9%
For the year ended March 31, 2022:¥174,586 million 229.0%
2. Mitsubishi HC Capital Inc. (the former Mitsubishi UFJ Lease & Finance Company Limited) executed the business integration with Hitachi
Capital Corporation on April 1, 2021. The year-on-year percentage change for the year ended March 31, 2022 represents the comparison
with the results of Mitsubishi UFJ Lease & Finance Company Limited.

DilutedEarnings per share earnings
per share

Recurring income
to total assets

Return on equity

Operating margin

For the fiscal year ended

(Yen)

(Yen)

%

%

%

March 31, 2023

80.95
69.24

80.71
69.06

8.2
8.0

1.4
1.2

7.3
6.5

March 31, 2022

(Reference) Share of profit of entities accounted for using equity method: For the fiscal year ended March 31, 2023: ¥11,982 million
For the fiscal year ended March 31, 2022: ¥4,818 million(2) Consolidated Financial Position
Total assets

As ofMarch 31, 2023
March 31, 2022

Total equity

Equity per share(Millions of yen)

％

(Yen)

10,726,196

1,551,029

14.3

1,064.46

1,333,467

12.7

912.1910,328,872(Reference) Shareholders’ equity:

Equity ratio(Millions of yen)

As of March 31, 2023:
As of March 31, 2022:¥1,528,773 million¥1,309,769 million(3) Consolidated Cash Flows
Cash flows fromoperating activities

For the fiscal year ended
March 31, 2023

Cash flows frominvesting activities(Millions of yen)

(Millions of yen)

46,752
195,845

March 31, 2022

Cash flows fromfinancing activities

Cash and cash equivalents
at the end of the year

(Millions of yen)

(Millions of yen)

(127,322)(8,948)460,486(107,879)(192,157)

520,083

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

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

For the fiscal year ended
ended March 31, 2022

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

(Millions of yen)

%

%

－

28.00
33.00

40.4

3.2

－

15.00
18.00

40,210

－

13.00
15.00

－

ended March 31, 2023
ending March 31, 2024
(Forecast)

47,402

40.8

3.3

－

18.00

－

19.00

37.00

44.3

(Note) The fiscal year-end dividend for the fiscal year ending March 31, 2023 is scheduled to be resolved at the Board of Directors meeting to beheld on May 23, 2023.

1

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%(Millions of yen)
Full year

120,000

Earnings per share
(Yen)

3.2

83.55

* Notes(1) Significant changes in subsidiaries during the period(Change of specific subsidiaries accompanying the change of scope of consolidation)
Excluded: Diamond Asset Finance Company Limited:

Yes(2) 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(3) Number of outstanding shares (common shares)(ⅰ) Number of outstanding
shares (including
treasury shares)

As of March 31, 2023

1,466,912,244 shares

As of March 31, 2022

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

As of March 31, 2023

30,718,231 shares

As of March 31, 2022

31,056,401 shares(ⅲ) Weighted average
number of shares
outstanding

For the year ended
March 31, 2023

1,436,042,105 shares

For the year ended
March 31, 2022

1,435,664,701 shares(Reference) Summary of Non-Consolidated Results
1. Non-Consolidated Results for the Fiscal Year Ended March 31, 2023 (April 1, 2022 – March 31, 2023)(1) Non-consolidated Operating Results(Year-on-year change %)Revenues
For the fiscal year ended
March 31, 2023
March 31, 2022

(Millions of yen)

Operating income% (Millions of yen)

Net income% (Millions of yen)%

764,506(8.8)

31,56074.6

79,910135.082,20459.4

838,475

70.4

18,071(20.6)

34,008(44.6)

51,584(18.6)

Earnings per share
For the fiscal year ended
March 31, 2023
March 31, 2022
(Note)

Recurring income% (Millions of yen)

Diluted earnings per share

(Yen)

(Yen)

57.24

57.08

35.93

35.84

The year-on-year percentage change for the Year ended March 31, 2022 represents the comparison with the results of Mitsubishi UFJ
Lease & Finance Company Limited.

(2) Non-consolidated Financial Position
Total assets
As of(Millions of yen)March 31, 2023
5,317,966
March 31, 2022
(Reference) Shareholders’ equity:

Total Equity

5,700,025
As of March 31, 2023:
As of March 31, 2022:

Equity ratio

Equity per share(Millions of yen)

%

(Yen)

881,212880,601

16.5
15.4

612.09612.00¥879,074 million¥878,739 million* This “Consolidated Financial Highlights” is outside the scope of an audit by certified public accountants or an audit firm.
* Explanation regarding the appropriate use of the forecasts, etc.
(Remarks on forward-looking statements)
The forward-looking statements in this report, including financial forecast, have been prepared by using information
available to Mitsubishi HC Capital Inc. (“Company” or “we”) on the date of release and the certain assumptions deemed
reasonable by the Company, and are not intended to assure that the Company will achieve such results. Actual earnings
may differ significantly from the forecasts for various reasons.
* This “Consolidated Financial Highlights” is made in Japanese and translated into English. The Japanese text is the original
and the English text is for reference purposes. If there is any conflict or inconsistency between these two texts, theJapanese text shall prevail.
2

Contents
1. Summary of Operating Results, etc.

4(1) Summary of Operating Results for the Fiscal Year Ended March 31, 2023

4(2) Summary of Financial Position as of March 31, 2023

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

9

2. Basic Policy for Selection of Accounting Standards

9

3. Consolidated Financial Statements and Major Notes

10(1) Consolidated Balance Sheets

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

12

Consolidated Statements of Income

12

Consolidated Statements of Comprehensive Income13(3) Consolidated Statements of Changes in Equity

14(4) Consolidated Statements of Cash Flows

16(5) Notes to the Consolidated Financial Statements

18(Notes concerning going-concern assumption)

18(Changes in accounting policies)

18(Segment information)

19(Per share information)

22(Significant subsequent events)

233

1. Summary of Operating Results, etc.
(1) Summary of Operating Results for the Fiscal Year Ended March 31, 2023
1) Overview of Financial Results, etc.
Net income attributable to owners of the parent for the fiscal year ended March 31, 2023 exceeded the financial
forecast with a record-high ¥116.2 billion. Annual dividend per share is to increase by ¥2 from the forecast at
the beginning of the fiscal year.
・Net income attributable to owners of the parent for the fiscal year ended March 31, 2023 increased by ¥16.8
billion, or 16.9% year on year, to a record-high ¥116.2 billion mainly thanks to 1) the profit contribution fromCAI International, Inc., a marine container leasing company in the U.S.A. that became the Company’s whollyowned subsidiary in November 2021, 2) a decrease in credit costs, and 3) the business growth in the Americas
in the Global Business segment.
・Net income attributable to owners of the parent for the fiscal year ended March 31, 2023 exceeded thefinancial forecast (net income attributable to owners of the parent of ¥110.0 billion) by ¥6.2 billion.
・As a result of exceeding the financial forecast, annual dividend per share is planned to be ¥33 (payout ratio:
40.8%), an increase by ¥2 from annual dividend forecast of ¥31 and by ¥5 from the annual dividend paid forthe fiscal year ended March 31, 2022 of ¥28.
For the fiscal year ending March 31, 2024, net income attributable to owners of the parent is forecast to be¥120.0 billion, and annual dividend per share is projected to be ¥37, an increase by ¥4 year on year.
・Net income attributable to owners of the parent for the fiscal year ending March 31, 2024 will see a limited
year on year increase up to 120.0 billion yen, due to investments aiming to realize Our 10-year Vision andcosts associated with restructuring and redefining existing businesses, in addition to the absence of areduction effect in tax expenses recorded in the fiscal year ended March 31, 2023, while forecasting the growthof aviation business against the backdrop of the recovery of passenger demand.
・Annual dividend per share for the fiscal year ending March 31, 2024 is projected to be ¥37, an increase by ¥4
year on year (payout ratio of 44.3% on the premise of the financial forecast).
(Billions of yen)
Fiscal Year Ended
March 31, 2022

Fiscal Year Ended
March 31, 2023

Change (%)

Revenues

1,765.5

1,896.2

7.4

Gross profit

334.6

357.3

6.8

Operating income

114.0

138.7

21.6

Recurring income

117.2

146.0

24.6

Net income attributable toowners of the parent

99.4

116.2

16.9

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.
(URL of the Medium-term Management Plan on the Company’s website)
https://www.mitsubishi-hc-capital.com/english/investors/managementplan/index.html
Establishment and announcement of the “Human Rights Policy”
In accordance with the United Nations “Guiding Principles on Business and Human Rights,” we established the“Human Rights Policy” and announced it in October 2022. We will proactively and continuously conduct our businessactivities in consideration of internationally recognized standards related to human rights, in order to fulfill our
responsibility to respect human rights as is expected of global companies, for achieving a society where human rights
are respected.
Major business topics
May 2022:

・Announced the acquisition of partial stake of distributed solar power generation project in
Massachusetts, U.S.A.
・Completed an eco-friendly multi-tenants logistics facility “CPD Nagoya Minato”.

Jul. 2022:

・Built a new solar power plant next to the Akita Tenbinno Wind Power Plant which was built in
Akita city, Akita prefecture in September 2015 and started commercial operation as a wind andsolar hybrid power plant.
・Invested in a newly established subsidiary of Mitsubishi Corporation, which undertakes thewarehouse DX operations that have been developed by Mitsubishi Corporation.

Sep. 2022:

・Completed an eco-friendly logistics facility “CPD Nishiyodogawa”.

Dec. 2022:

・Announced to conclude a capital and business alliance agreement with Connected Robotics
Inc., engaging in research and development of robotics services designed for the food industry.
・Announced to transfer shares of Diamond Asset Finance Company Limited, a group company
mainly operating the residential real estate-related finance, in order to concentrate resources
on prioritized businesses in the Real Estate segment, and improve profitability in the segment(completed the transfer in March 2023).

Jan. 2023:

・ Commenced the business operation under the new management structure following thecompletion of the merger of CAI International, Inc. and Beacon Intermodal Leasing, LLC,
operating the marine container leasing business.
・Announced to merge Mitsubishi HC Capital Energy Inc. and HGE Ltd., operating solar power
generation business (completed the merger in April 2023).

Feb. 2023:

・Established an auto leasing joint venture in Thailand with ALD S.A., a global leading company
in the auto leasing industry based in France.
・Announced to absorb and merge Japan Infrastructure Initiative Company Limited (“JII”), a
group company making investments and providing loans in overseas infrastructure sector, after
making JII a wholly-owned subsidiary on the premise that MUFG Bank, Ltd. would assign all of
JII shares it holds to the Company (completed the merger in April 2023).
5

・Announced the business integration of group companies in the U.S.A., Mitsubishi HC Capital
America, Inc., Mitsubishi HC Capital (U.S.A.) Inc., and ENGS Commercial Finance Co.
(completed the business integration in April 2023).
・Concluded a merger agreement between Mitsubishi Auto Leasing Corporation and Mitsubishi
HC Capital Auto Lease Corporation, operating the auto leasing business (completed the merger
in April 2023).
Mar. 2023:

・Originated a healthcare fund jointly with Development Bank of Japan Inc.
・Concluded a lease agreement using a transition finance with Tokyo Gas Co., Ltd.
・Universal Hydrogen Co., our investee in the U.S.A. engaging in development of hydrogencapsules and engines for hydrogen-powered aircrafts, successfully completed its first test flightof a 40-passenger propeller plane, the world’s largest aircraft mainly using hydrogen fuel cell
propulsion, making a progress toward its practical application.

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., operating therenewable energy generation business, and Tokyo Metro Co., Ltd.,・Made CenterPoint Development Inc., a group company engaging in development of logistics
facilities and asset management business specializing in logistics facilities, a wholly-owned
subsidiary.

3) Operating results by reportable segments
Operating results by reportable segments were as follows.
Following the organizational changes effective April 1, 2022, the reportable segments were changed to thefollowing seven segments.
(For details of new reportable segments, please refer to “3. Consolidated Financial Statements and Major Notes,(5) Notes to the Consolidated Financial Statements (Segment information)” on page 19.)
Figures for the fiscal year ended March 31, 2022 were converted into new reportable segments.
(Customer Solutions)
Segment profit increased by ¥ 5.4 billion, or 16.7% year on year, to ¥38.1 billion mainly thanks to the posting oflarge gains on sales related to real estate leasing, the absence of large credit costs recorded in the fiscal year
ended March 31, 2022, and other factors.
(Global Business)
Segment profit decreased by ¥11.8 billion, or 29.0% year on year, to ¥29.0 billion due to the posting of a loss
on revaluation of securities associated with a decline in market value of certain strategic shareholdings and an
absence of large gains on sales of strategic shareholdings recorded in the fiscal year ended March 31, 2022
despite factors contributing to profit increase such as the business growth of the subsidiaries mainly in Americas,
a decrease in credit costs, and gains on revaluation of securities recorded at a European subsidiary.
(Environment, Energy & Infrastructure)
Segment profit increased by ¥9.3 billion, or 411.6% year on year, to ¥11.6 billion mainly thanks to an increasein profits from overseas renewable energy-related equity-method investments, gains on sales of investments incertain projects in the infrastructure business, and an absence of credit costs recorded in the fiscal year ended
March 31, 2022 for certain customers in the infrastructure project.

6

(Aviation)
Segment profit increased by ¥0.5 billion, or 9.3% year on year, to ¥6.2 billion mainly thanks to the recovery trend
in the business that are shown by an increase in leasing revenue and gains on sales of owned assets, adecrease in credit costs and so on, despite an absence of gains on sales of certain receivables from bankrupt
debtors recorded in the fiscal year ended March, 2022, an increase in exchange revaluation losses related toforeign currency-denominated borrowings in Japanese Operating Lease with Call Option (JOLCO) resulted fromthe weak yen, and an increase in impairment losses.
(Logistics)
Segment profit increased by ¥14.5 billion, or 1,787.4% year on year, to ¥15.3 billion mainly thanks to the fullyear profit contribution from CAI International, Inc., a marine container leasing company in the U.S.A. that
became the Company's wholly-owned subsidiary in November 2021 and steady performance of Beaconlntermodal Leasing, LLC, which also operates marine container leasing business.
These two companies, both operating marine container leasing business, were merged on January 1, 2023
(Real Estate)
Segment profit increased by ¥0.2 billion, or 2.0% year on year, to ¥12.6 billion mainly thanks to a decrease intax expenses associated with the share transfer of our wholly owned subsidiary Diamond Asset Finance
Company Limited despite the posting of credit costs for a certain project in the U.S.A. and other factors.
(Mobility)
Segment profit increased by ¥0.6 billion, or 21.2% year on year, to ¥3.7 billion mainly thanks to an increase ingains on sales of vehicles for which the leasing term matured, against a backdrop of strong used car market in
Japan.

7

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

Reportable segments

Fiscal Year Ended
March 31, 2022

Fiscal Year Ended
March 31, 2023

Change (%)

Customer Solutions

32.6

38.1

16.7

Global Business
Environment, Energy &Infrastructure

40.8

29.0

(29.0)

2.2

11.6

411.6

Aviation

5.6

6.2

9.3

Logistics

0.8

15.3

1,787.4

Real Estate

12.3

12.6

2.0

Mobility

3.1

3.7

21.2

Adjustments

1.5

(0.6)

－

Total

99.4

116.2

16.9

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

Segment assets by reportable segments

Reportable segments(Billions of yen)
Change (%)

As of March 31, 2022

As of March 31, 2023

Customer Solutions

3,337.6

3,227.7(3.3)

Global Business
Environment, Energy &Infrastructure

2,316.3

2,644.2

14.2

419.3

433.2

3.3

Aviation

1,365.1

1,640.2

20.2

Logistics

1,026.7

1,092.9

6.4

Real Estate

712.7

447.2

(37.2)

Mobility

129.4

41.4

(68.0)

Adjustments

37.9

105.8

179.2

Total

9,345.3

9,632.9

3.1(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.
3. Figures for the fiscal year ended March 31, 2022 are values which are converted into new reportable segments.

8(2) Summary of Financial Position as of March 31, 2023
1) Assets, liabilities, and equity
Compared to the figures as of March 31, 2022, total assets as of March 31, 2023 increased by ¥397.3 billion
to ¥10,726.1 billion, total equity increased by ¥217.5 billion to ¥1,551.0 billion, and interest-bearing debt
(excluding lease obligations) increased by ¥170.0 billion to ¥8,236.1 billion year on year.
2) Cash flows
Cash and cash equivalents as of March 31, 2023 decreased by ¥59.5 billion, or 11.4% year on year, to ¥460.4
billion, due to cash outflows in investing activities of ¥127.3 billion and in financing activities of ¥8.9 billion
despite cash inflows in operating activities of ¥46.7 billion.
Net cash inflows from operating activities was ¥46.7 billion (net cash inflows of ¥195.8 billion for the fiscal year
ended March 31, 2022), mainly consisting of cash outflows from purchases of leased assets and other operating
assets of ¥496.1 billion, an increase in loans receivable of ¥76.7 billion, and a decrease in trade payables of¥22.6 billion, despite cash inflows from income before income taxes of ¥153.1 billion and depreciation, loss on
disposal and sales of leased assets of ¥479.7 billion.
Net cash outflows from investing activities was ¥127.3 billion (net cash outflows of ¥107.8 billion for the fiscal
year ended March 31, 2022), mainly consisting of cash outflows from payments into time deposits of ¥252.4
billion despite cash inflows from proceeds from withdrawal of time deposits of ¥139.0 billion.
Net cash outflows from financing activities was ¥8.9 billion (cash used of ¥192.1 billion for the fiscal year ended
March 31, 2022), mainly consisting of net cash outflows from direct financing of ¥120.4 billion, indirect financing
through bank borrowings of ¥154.6 billion, and dividends paid of ¥43.0 billion.
(3) Explanation on Future Forecast Information including Consolidated Financial Forecast
Net income attributable to the owners of the parent for the fiscal year ending March 31, 2024 is planned to be¥120.0 billion, which is a limited year on year increase. This is because we expect to make the investments
aiming to realize Our 10-year Vision and to post the costs associated with restructuring and redefining existing
businesses in this fiscal year, in addition to the absence of reduction effect in tax expenses recorded in the fiscal
year ended March 31, 2023, while forecasting the growth in Aviation segment against the backdrop of therecovery of passenger demand.
Annual dividend per share for the fiscal year ending March 31, 2024 is projected to be ¥37 (interim: ¥18, fiscal
year-end: ¥19, payout ratio of 44.3% on the premise of the net income forecast of ¥120.0 billion), an increaseof ¥4 year on year.

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

93. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets
For the fiscal year ended
March 31, 2022
(As of March 31, 2022)
AssetsCurrent assets
Cash and deposits
Installment receivables
Lease receivables and investments in leases
Operating loans receivables
Other operating loans receivable
Lease and other receivables
Securities
Merchandise
Other current assets
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Leased assets
Leased assets
Advances on purchases of leased assets
Total leased assets
Other operating assets
Own-used assets
Total property, plant and equipment
Intangible assets
Leased assets
Leased assets
Total leased assets
Other intangible assets
Goodwill
SoftwareTelephone subscription right
Other
Total other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Distressed receivables
Deferred tax assets
Retirement benefit asset
Other investments
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets

10(Millions of yen)
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)

540,942
255,143
3,265,267
1,662,226
183,749
80,382
2,019
48,242
156,006(22,657)
6,171,321

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

3,086,149
34,622
3,120,771
222,654
13,782
3,357,208

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

39,49539,49523,19723,19790,32625,632
35
112,150
228,145
267,641

91,497
21,622
33
111,379
224,532
247,730

376,645
108,188
38,137
1,593
80,134(76,791)
527,908
4,152,758

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

4,791
4,791
10,328,872

4,603
4,603
10,726,196

For the fiscal year ended
March 31, 2022
(As of March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Commercial papers
Current maturities of loans from thesecuritizations of the minimum future rentals
on lease contracts
Lease obligations
Income taxes payable
Deferred profit on installment sales
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Loans from the securitizations of the minimum
future rentals on lease contracts, less current
maturities
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for directors(and other officers)
Retirement benefit liability
Asset retirement obligations
Reserve for contract of insurance
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total equity
Total liabilities and equity

11(Millions of yen)
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)

184,042
591,431443,647
810,475
682,593

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

247,900

246,640

21,676
24,818
11,11014,685

19,794
9,381
9,648
15,890

2,535

2,255

200,425
3,235,343

252,6433,512,353

1,820,244
3,113,196

1,582,848
3,253,535

356,592

357,662

53,331
108,580

43,089143,810

136

110

8,856
40,431
11,148247,542
5,760,061
8,995,404

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

33,196
548,586
638,043(19,369)
1,200,456

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

14,953

14,8171,460
92,776
123

53,051
186,545
1,985

109,313

256,400

1,861
21,835
1,333,467
10,328,872

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

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)Revenues
Cost of revenues
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Rental income
Share of profit of entities accounted for using
equity method
Recoveries of written off receivables
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other non-operating expenses
Total non-operating expenses
Recurring income
Extraordinary income
Gain on sale of investment securities
Gain on valuation of investment securities
Gain on step acquisitions
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries andassociates
Impairment losses
Loss on step acquisitions
Total extraordinary losses
Income before income taxes
Income taxes- current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2022
March 31, 2023
(April 1, 2021 - March 31, 2022)(April 1, 2022 – March 31, 2023)
or the fiscal year ended
1,765,559
1,896,231
1,430,898
1,538,904
334,661
357,327
220,569
218,600
114,092
138,727

12

540
2,447
134

2,467
1,907
120

4,818

11,982

2,218
5,469
15,6293,152
4,998
24,628

5,878
3,718
2,884
12,482
117,239

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

29,967431
30,399

2,996
7,194
1,159
11,350

114
-

407
2,369

-

1,006

273
388
147,250
38,807
7,088
45,896
101,354
1,953
99,401

479
4,262
153,164
24,941
10,51035,451
117,7121,471
116,241

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2022
March 31, 2023
(April 1, 2021 - March 31, 2022) (April 1, 2022 – March 31, 2023)
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests

13

101,354

117,712(15,578)(463)

15,001
69,358
1,061

39,631
93,891
1,854

3,389

12,51073,232
174,586

147,424265,136

171,878

262,934

2,708

2,202

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Balance at the beginning of
the period
Cumulative effects of changes inaccounting policies

33,196

Restated balance

33,196

Retained earnings

167,280

Total shareholders’equityTreasury shares

568,335(1,528)767,283-

167,280

568,335(1,528)767,283(18,022)

363,457

Changes during the period

381,480

Increase by merger
Dividends of surplus
Net income attributable toowners of the parent(29,693)(29,693)

99,401

99,401

Changes due to a mergerof a consolidated
subsidiary and a nonconsolidated subsidiary-

Change in ownership interestof parent due totransactions
with non-controlling interests

(113)

(113)

Purchase of treasury shares(60)

Disposal of treasury shares

(3)

(3)

184

123

Net changes in items otherthan shareholders' equity
Total changes during the period-

381,306

69,707(17,840)

433,172

Balance at the end of the period

33,196

548,586

638,043(19,369)

1,200,456

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

30,678Deferred
gains orlosses onhedges(15,519)

Foreigncurrencytranslation
adjustment

22,278Remeasurementsof defined
benefit plans

(925)

Share
Total
acquisition
accumulated
rightsothercomprehensive
income36,512

1,552

Noncontrollinginterests

12,557

Cumulative effects of changes inaccounting policies
Restated balance

Total equity

817,906-

30,678(15,519)

22,278(925)

36,512

1,552

12,557

817,906

Changes during the period
Increase by merger

363,457

Dividends of surplus(29,693)

Net income attributable toowners of the parent

99,401

Changes due to a mergerof a consolidated
subsidiary and a nonconsolidated subsidiary-

Change in ownership interestof parent due totransactions
with non-controlling interests(113)

Purchase of treasury shares(3)

Disposal of treasury shares

123

Net changes in items otherthan shareholders' equity(15,725)

16,97970,497

1,049

Total changes during the period(15,725)

16,97970,4971,049

72,800308

9,278

515,560

Balance at the end of the period

14,953

1,460

92,776

123

109,313

1,861

21,835

1,333,467

14

72,800308

9,278

82,387

For the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Balance at the beginning of
the period
Cumulative effects of changes inaccounting policies

33,196

Restated balance

33,196

Retained earnings

548,586

638,043

Total shareholders’equityTreasury shares(19,369)

1,200,456-

548,586

638,043(19,369)

1,200,456

Changes during the period-

Increase by merger
Dividends of surplus(43,087)(43,087)

Net income attributable toowners of the parent

116,241

116,241

Changes due to a mergerof a consolidated
subsidiary and a nonconsolidated subsidiary

(206)

(206)

Change in ownership interestof parent due totransactions
with non-controlling interests(1,191)(1,191)

Purchase of treasury shares(49)

Disposal of treasury shares

(0)

(0)

211

161

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

72,946

210

71,916

Balance at the end of the period

33,196547,344

710,989(19,158)

1,272,372

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

14,953

Deferred
gains orlosses onhedges1,460

Foreigncurrencytranslation
adjustment

92,776

Remeasurementsof defined
benefit plans

123

394
15,347

Share
Total
acquisition
accumulated
rightsothercomprehensive
income109,313

1,861

Noncontrollinginterests

21,835394
1,460

92,776

123

109,707

Total equity

1,333,467
394

1,861

21,835

1,333,861

Changes during the period
Increase by merger-

Dividends of surplus(43,087)

Net income attributable toowners of the parent

116,241

Changes due to a mergerof a consolidated
subsidiary and a nonconsolidated subsidiary(206)

Change in ownership interestof parent due totransactions
with non-controlling interests(1,191)

Purchase of treasury shares(0)

Disposal of treasury shares161

Net changes in items otherthan shareholders' equity(529)

51,591

93,7691,861

146,693276(1,717)145,252

Total changes during the period(529)

51,591

93,7691,861

146,693276(1,717)217,168

Balance at the end of the period

14,81753,051

186,545

1,985

256,400

2,138

20,118

1,551,02915

(4) Consolidated Statements of Cash Flows
For the fiscal year ended
March 31, 2022
(April 1, 2021 - March 31, 2022)(Millions of yen)
For the fiscal year ended
March 31, 2023
(April 1, 2022 - March 31, 2023)

147,250
295,793
148,205
13,050153,164
313,992
165,768
12,588

10,331

11,489

3,378
6,135

3,436
8,601

19,479(13,265)(2,988)82,118(4,375)
143,227(4,818)(11,982)(29,853)(4,825)(2,588)

-

1,006

273
(431)

(1,159)
-

1,598

3,482

8,225

11,942(29,406)

23,458(26,169)(76,750)

7,242

14,385(397,205)(7,770)3,885
62,581
310,905
4,522(83,076)(36,505)
195,845(479,501)(16,629)(22,646)219
233,036
6,557(139,042)(53,800)
46,752(9,623)553(13,663)(8,793)738(9,981)

36,06520,302(124,592)(4,677)

2,271(5,913)6,976
45(107,879)(14,157)
2,816(252,427)
139,045(186)(127,322)

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

16

(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2022
(April 1, 2021 - March 31, 2022) (April 1, 2022 - March 31, 2023)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Net increase (decrease) in commercial papers
Proceeds from loans from the securitizations of
the minimum future rentals on lease contracts
Repayments of loans from the securitization of
the minimum future rentals on lease contracts
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Dividends paid
Dividends paid to non-controlling interests
Proceeds from share issuance to non-controllingshareholders
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Other
Cash flows from financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of theperiodIncrease (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Increase in cash and cash equivalents resulting frommergerCash and cash equivalents at the end of the period

17

49,90430,70780,025(130,161)

359,310519,089(423,974)(407,007)

562,540(685,685)
498,011(532,561)(29,693)(3,140)1,065,363(990,689)
361,330(463,710)(43,087)(2,552)-

7,282(12,346)(3,553)(5,229)(192,157)(1,276)(8,948)21,06629,816(83,124)(59,701)

286,213520,083

99

104

316,895-

520,083

460,486

(5) Notes to the Consolidated Financial Statements(Notes concerning going concern assumption)
Not applicable(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
On April 1, 2022, the Company applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No.31, June 17, 2021, “Implementation Guidance on Accounting Standard for
Fair Value Measurement”), and the new accounting policies stipulated in the Implementation Guidance on
Accounting Standard for Fair Value Measurement are applied prospectively pursuant to the transitional
treatment stipulated by Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value
Measurement.
The impact of this change on the consolidated financial statements is insignificant.
(Application of Accounting Standards Update (ASU) 2016-02 “Leases”)
Certain overseas consolidated subsidiaries applied ASU 2016-02 ”Leases” on April 1, 2022. As a result, leaseassets and lease liabilities are recognized in general on the consolidated balance sheet of these overseas
consolidated subsidiaries for all lease transactions entered into as a lessee.
The impact of this change on the consolidated financial statements is insignificant.

18

(Segment information)
1. Overview of reportable segments
Effective April 1, 2022, the Group integrated business organizations having similar functions and roles in
preparation for the 2025 MTMP. As a result, the Group has seven reportable segments of “Customer Solutions”,“Global Business”, “Environment, Energy & Infrastructure”, “Aviation,” “Logistics”, “Real Estate” and “Mobility”
from April 1, 2022.
Details of new reportable segments are as follows.
Reportable segments

Main services and business description

Customer Solutions

Finance solutions for companies and government agencies, sales financeprovided through collaboration with vendors, real estate leasing, and financial
services

Global Business

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

Environment, Energy &Infrastructure

Renewable energy power generation business, energy-saving business, andoverseas infrastructure investment 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 securitization finance, real estate revitalization investment
business, and real estate asset management business

Mobility

Auto leasing business and supplementary services

Figures in the segment information for the fiscal year ended March 31, 2022 were converted into new reportablesegments.
Following the organizational changes, the segment name of “Environment, Energy & Infrastructure” will bechanged to “Environment & Energy” since the fiscal year ending March 31, 2024.
2. Calculation of profit or loss and assets by reportable segments
The accounting treatments applied to reported business segments are consistent with those adopted in
preparation of the consolidated financial statements.
Profit of reportable segments are based on net income attributable to owners of the parent.
Intersegment earnings and transfers are based on market prices.

19

3. Information on profit or loss and assets by reportable segments
For the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
Reportable segments

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

Customer
SolutionsGlobalBusiness

Environment,
Energy &Infrastructure

Aviation

Logistics

Real Estate

Mobility

32,69240,856

2,278

5,682

815

12,395

3,134

1,546

99,401

3,337,672

2,316,383

419,399

1,365,126

1,026,757

712,700

129,429

1,021,402

10,328,872(Note)1. Adjustments of segment profit consist mostly of adjustments of company-wide expenses included in selling, general andadministrative expenses not allocated to any reportable segments. It also includes a profit adjustment of ¥2,744 million related
to the merger with Hitachi Capital Corporation under the purchase method.
Adjustments of segment assets include goodwill recognized when Diamond Lease Company Limited and UFJ Central
Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease & Finance Company Limited in 2007 and other segment assets
not attributable to any reportable segments, such as investment securities related to Corporate, amounting to ¥37,907 million,
and the sum of such amount and the segment assets of all reportable segments amounted to ¥9,345,376 million.
The remainder of the adjustments of segment assets of ¥983,495 million represents the difference between total segment
assets including Corporate and total consolidated assets, which consists of assets other than segment assets such as cash
and deposits and own-used assets.
2. Segment profit is consistent with net income attributable to owners of the parent on the consolidated statements ofincome.
3. Segment assets include operating assets, equity-method investments, goodwill and investment securities.

For the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Reportable segments

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

Customer
SolutionsGlobalBusiness

Environment,
Energy &Infrastructure

Aviation

Logistics

Real Estate

Mobility

38,16729,013

11,657

6,209

15,385

12,645

3,798

(636)

116,241

3,227,742

2,644,283

433,296

1,640,232

1,092,910

447,277

41,402

1,199,051

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

20

4. Information on impairment losses on non-current assets by reportable segments
For the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segments
Customer
Solutions
Impairment losses

Environment,
Energy &Infrastructure

GlobalBusiness---

Aviation

Logistics

3,550

Real Estate-

Corporate/elimination

Mobility

-

-

-

Total

3,550

(Note) The amount in “Aviation” is recorded in cost of revenues as impairment losses on leased assets.
For the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments

Impairment losses

Customer
SolutionsGlobalBusiness

Environment,
Energy &Infrastructure

-

479

-

Aviation

Logistics

Real Estate

5,946

2,473

-

Corporate/elimination

Mobility
-

-

Total

8,899

(Note) The amount in “Global Business” is recorded in extraordinary losses as impairment loss on goodwill andintangible assets. The amounts in “Aviation” and “Logistics” is recorded in cost of revenues as impairment
losses on leased assets.
5. Information on goodwill amortization and unamortized balance by reportable segments
For the fiscal year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(Millions of yen)
Reportable segments
Customer
SolutionsGlobalBusiness

Environment,
Energy &Infrastructure

Amortization during
the period-

696

Balance at the end of
the period-

12,595

Mobility

Corporate/elimination(Note)

Total

Aviation

Logistics

Real Estate

-

2,621

139

500

58

2,117

6,135

-

30,48933,743

2,168

742

10,58790,326(Note) Corporate/elimination for amortization during the period and balance at the end of the period represent
amortization and outstanding balance, respectively, of goodwill recognized when Diamond Lease Company
Limited and UFJ Central Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease & Finance Company
Limited in 2007.
For the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(Millions of yen)
Reportable segments
Customer
SolutionsGlobalBusiness

Environment,
Energy &Infrastructure

Amortization during
the period-

841

Balance at the end of
the period-

13,330

Mobility

Corporate/elimination(Note)

Total

Aviation

Logistics

Real Estate

-

3,138

1,935

500

67

2,117

8,601

-

32,00736,975

-

714

8,469

91,497(Note) Corporate/elimination for amortization during the period and balance at the end of the period represent
amortization and outstanding balance, respectively, of goodwill recognized when Diamond Lease Company
Limited and UFJ Central Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease & Finance Company
Limited in 2007.

21

(Per share information)
For the fiscal year ended
March 31,2022

For the fiscal year ended
March 31,2023(April 1, 2021 – March 31, 2022) (April 1, 2022 – March 31, 2023)

Equity per share¥912.19¥1,064.46

Earnings per share¥69.24¥80.95

Diluted earnings per share¥69.06¥80.71(Note) The basis for calculation of equity per share, earnings per share, and diluted earnings per share is as follows.
1. Equity per share
For the fiscal year ended
March 31,2023

For the fiscal year ended
March 31,2022(April 1, 2021 – March 31, 2022) (April 1, 2022 – March 31, 2023)

Total equity (millions of yen)Amount deducted from total equity(millions of yen)
(Of which, share acquisition rights (millions ofyen))(Of which, non-controlling interests (millions ofyen))
Equity related to common shares at end of theperiod (millions of yen)
Number of common shares used for calculationof equity per share at the end of the period(thousand shares)

1,333,467

1,551,029

23,69722,256(1,861)(2,138)(21,835)(20,118)

1,309,769

1,528,773

1,435,855

1,436,194

2. Earnings per share and diluted earnings per share
For the fiscal year ended
For the fiscal year ended
March 31,2022
March 31,2023(April 1, 2021 – March 31, 2022) (April 1, 2022 – March 31, 2023)
Earnings per share
Net income attributable to owners of the parent(millions of yen)Amount not attributable to commonshareholders (millions of yen)
Net income attributable to commonshareholders of the parent (millions of yen)
Average number of shares during the period(thousand shares)

99,401

116,241--

Diluted earnings per share
Adjustment to net income attributable toowners of the parent (millions of yen)
Increase in common shares (thousand shares)(Of which, share acquisition rights (thousand
shares))Summary of potential dilutive shares not includedin the calculation of diluted earnings per share
due to their anti-dilutive effect―22

99,401

116,241

1,435,664

1,436,042

-

-

3,736

4,209

(3,736)(4,209)―(Significant subsequent events)(Transaction to make CenterPoint Development Inc. a wholly owned subsidiary)
On April 14, 2023, the Company has entered into a share transfer agreement to acquire all shares of CenterPoint
Development Inc. (“CPD”), our equity method affiliate offering the investment advisory and asset management
service for logistics real estate, and completed the share acquisition on April 21, 2023.
1. Outline of the business combination(1) Name and business description of the acquiree
Name of the acquiree: CenterPoint Development Inc.
Business description: Investment advisory and asset management service specializing in the logistics real estate(2) Primary reasons for the business combination
The logistics market has continued to grow on the back of the surging demand due to expansion of domestic ecommerce, and the logistics facility leasing market is also steadily growing. The expansion of e-commerce is
expected to continue, and there is also a growing need for logistics facilities to meet demands such as for laborsaving and automation, integration or reconstruction due to aging or obsolescence, and the location in areas withtraffic convenience.
Amid such environment, the Company has decided to make CPD its wholly owned subsidiary to enhance andexpand the logistics facility-related business with the company as it engages in the development of logistics facilities
meeting tenants’ needs and the asset management business specializing in such facilities.
(3) Date of the business combination
April 21, 2023
(4) Legal form of the business combination
Acquisition of shares using cash as the form of consideration(5) Company name after the business combination
There is no change of company name after the business combination.
(6) Voting rights acquired
Voting rights before the business combination: 33.4%
Voting rights after the business combination: 100.0%(7) Main grounds for deciding the acquiree
As the Company acquired all voting rights of CPD with cash as consideration.
2. Details of acquisition cost and consideration by typeThe information is not disclosed based on the agreement between the parties.
3. Details and amount of major acquisition-related cost
It is currently in the process of calculation.
4. Amount of goodwill to be recognized, factors that make up the goodwill, and amortization method and period
It is currently in the process of calculation, but goodwill and gain on step acquisition are expected to be recognized
as a result of this transaction.
5. Amount of assets acquired and liabilities assumed on the date of the business combination and major components
thereof
It is currently in the process of calculation.

23