Consolidated Financial Highlights for the Third Quarter Ended December 31, 2022
[Based on J-GAAP]
February 10, 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:
Takahiro Yanai, Representative Director, President & CEO
For Inquiry:
Satoshi Inoue, Senior Managing Executive Officer TEL: +81-3-6865-3002
Scheduled Date of Submission of Financial Reports:
February 10, 2023
Scheduled Commencement of Dividend Payment:
Supplemental Material for Financial Results:
Available
Holding of Quarterly Financial Results Meeting:No(Amounts of less than one million yen are rounded down)
1. Consolidated Results for the Third Quarter Ended December 31, 2022 (April 1, 2022 – December 31, 2022)(1) Consolidated Operating Results (Cumulative)(% 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 nine months ended(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

December 31, 2022

1,410,472

7.4

106,38430.3

109,666

33.3

85,927

13.4

December 31, 2021

1,312,987

86.5

81,65962.3

82,25255.8

75,74885.8(Note) 1. Comprehensive income:For the nine months ended December 31, 2022: ¥278,478 million 161.8%
For the nine months ended December 31, 2021: ¥106,367 million 343.3%
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 nine months ended December 31, 2021 represents thecomparison with the results of Mitsubishi UFJ Lease & Finance Company Limited.

DilutedEarnings per share earnings
per share

For the nine months ended

(Yen)

(Yen)

December 31, 2022

59.84

59.66

December 31, 2021

52.76

52.63

(2) Consolidated Financial Position
Total assets

As ofTotal equity

Equity ratio(Millions of yen)

(Millions of yen)%

December 31, 2022

11,125,962

1,566,019

13.9

March 31, 2022

10,328,872

1,333,467

12.7(Reference) Shareholders’ equity:

As of December 31, 2022:
As of March 31, 2022:¥1,541,956 million¥1,309,769 million

2. Dividends
Dividend per share
1st Quarter end

For the fiscal year
ended March 31, 2022
ending March 31, 2023
ending March 31, 2023
(Forecast)

2nd Quarter end

3rd Quarter end

Fiscal Year - end

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

－

13.00

－

15.00

28.00

－

15.00

－
16.00

31.00

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

3. Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)(Year-on-year change %)Net income attributable toowners of the parent%(Millions of yen)
Full year

110,000

Earnings per share
(Yen)

10.7

76.60

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

1

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

No(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 15.
(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 15.
(4) Number of outstanding shares (common shares)(ⅰ) Number of outstanding
shares (including
treasury shares)

As of December 31, 2022

1,466,912,244 shares As of March 31, 2022

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

As of December 31, 2022

30,835,571 shares As of March 31, 2022

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

For the nine months ended
December 31, 2022

1,436,009,363 shares

For the nine months ended
December 31, 2021

1,435,622,733 shares* 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．Qualitative Information concerning Financial Results for the Third Quarter Ended December 31, 2022

4(1) Summary of Operating Results

4(2) Summary of Consolidated Financial Position

8(3) Explanation on Future Forecast Information including Consolidated Financial Forecast

8

2．Quarterly Consolidated Financial Statements and Major Notes

9(1) Quarterly Consolidated Balance Sheets

9(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

11

Quarterly Consolidated Statements of Income
For the Nine Months ended December 31, 2022 and 2021

11

Quarterly Consolidated Statements of Comprehensive Income
For the Nine Months ended December 31, 2022 and 2021
(3) Notes to the Quarterly Consolidated Financial Statements

12
13(Segment information)

13(Notes concerning going concern assumption)

15(Notes concerning significant changes in shareholders’ equity)

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

15(Changes in accounting policies)

15(Additional information)

15

3

1. Qualitative Information concerning Financial Results for the Third Quarter Ended December 31, 2022
(1) Summary of Operating Results1) Overview of Financial Results, etc.
Quarterly net income attributable to owners of the parent increased by 13.4% year on year mainly thanks to the
profit contribution from CAI International, Inc., and a decrease in credit costs.
・Quarterly net income attributable to owners of the parent for the nine months ended December 31, 2022
increased by ¥10.1 billion, or 13.4% year on year, to ¥85.9 billion mainly thanks to 1) the 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, 2) a decrease in credit costs including the Aviation segment,
and 3) the business growth of the subsidiaries mainly in Americas in the Global Business segment.
・The progress of net income for the nine months ended December 31, 2022 against the consolidated financial
forecast for the fiscal year ending March 31, 2023 (net income attributable to owners of the parent of ¥110.0
billion) was 78.1%.
The Company has been promoting reorganization of domestic and overseas business branches/group companies and “Business Portfolio Transformation”.
・Since the business integration in April 2021, we have been promoting reorganization of domestic and overseas
business branches/group companies to enhance our competitiveness through effective utilization ofmanagement resources and integrating our know-how.
・As part of “Business Portfolio Transformation”, we have resolved to conduct a transfer of the shares of
Diamond Asset Finance Company Limited, which mainly operates residential real estate-related finance.
(scheduled to transfer in March 2023).
・The new Medium-term Management Plan is scheduled to be started from the fiscal year ending March 31,
2024.
(Billions of yen)
For the nine months
For the nine months
ended December 31, 2021 ended December 31, 2022

Change (%)

Revenues

1,312.9

1,410.4

7.4

Gross profit

239.2

264.6

10.6

Operating income

81.6

106.3

30.3

Recurring income

82.2

109.6

33.3

Quarterly net income
attributable to ownersof the parent

75.7

85.9

13.4

2) Major topics
In May 2022, the Company released the “Medium- to Long-term Management Direction” which describes “Our10-year Vision (Together we innovate, challenge and explore the frontiers of the future)” and shows how we want tobe recognized by our stakeholders and how we should transform to become such a company to realize “Our 10-year
Vision”. We defined the three-phase Medium-term Management Plans covering the next ten years as “hop,” “step,”and “jump,” and are now discussing specific management strategy, business strategy, KPIs and others for the new
Medium-term Management Plan covering the three-year period from the fiscal year ending March 31, 2024 to thefiscal year ending March 31, 2026 defined as “hop,” during the process of developing the plan.
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 humanrights are respected.
4

(Major business topics)
May 2022:

・Announced the acquisition of partial stake of distributed solar power generation project in
Massachusetts, the 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 windand solar 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 foodindustry.
・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 to improve profitability in thesegment (scheduled to come into effect 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 (scheduled to come into effect in April 2023).

Feb. 2023:

・Announced to reach an agreement to establish 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 the overseas infrastructure sector,
after making JII a wholly-owned subsidiary on the premise that MUFG Bank, Ltd. would assign
all of JII shares which it holds to the Company (scheduled to come into effect in April 2023).
・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.
(scheduled to come into effect in April 2023).

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 “2. Quarterly Consolidated Financial Statements andMajor Notes, (3) Notes to the Quarterly Consolidated Financial Statements (Segment information)” on page 13.)
Figures for the nine months ended December 31, 2021 and for the year ended March 31, 2022 wereconverted into new reportable segments.
(Customer Solutions)
Despite the large gains on sales related to real estate leasing, a decrease in credit costs, and other factors,
segment profit remained flat year on year at ¥28.8 billion due to a reactionary fall in multiple sales by cancellationof certain large deals recorded in the nine months ended December 31, 2021.

5

(Global Business)
Segment profit decreased by ¥9.0 billion, or 25.2% year on year, to ¥26.9 billion due to an absence of large
gains on sales of strategic shareholdings recorded in the nine months ended December 31, 2021 andrecognition of loss on valuation of securities due to a decline in market value of certain strategic shareholdings
despite the 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 ¥9.5 billion to ¥8.2 billion mainly thanks to an increase in profits from overseas
renewable energy-related equity-method investments, gains on sales of investments in certain projects in theinfrastructure business, and an absence of credit costs recorded in the nine months ended December 31, 2021
for certain customers in the infrastructure project.
(Aviation)
Segment profit decreased by ¥2.2 billion, or 96.6% year on year, to ¥0.0 billion mainly due to an increase in
exchange revaluation losses related to foreign currency-denominated borrowings in Japanese Operating Leasewith Call Option (JOLCO) resulted from the weak yen, an absence of gains on revaluation of certain receivablesfrom bankrupt debtors recorded in the nine months ended December, 2021 and posting of an impairment loss,
despite the recovery trend in the business that are shown by an increase in lease revenues, a decrease in credit
costs and so on.
(Logistics)
Despite impairment losses on certain railway freight car assets were posted accompanied with thedetermination of sales aiming to the replacement of the portfolio, segment profit increased by ¥12.6 billion year
on year to ¥12.3 billion mainly thanks to the 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 andsteady performance of Beacon Intermodal Leasing, LLC, which also operates marine container leasing business.
Such two marine container leasing companies merged on January 1, 2023.
(Real Estate)
Segment profit increased by ¥1.5 billion, or 24.1% year on year, to ¥7.8 billion mainly thanks to an increasein gains on sales, while credit costs were posted for a certain project in the U.S.A.
(Mobility)
Segment profit increased by ¥0.4 billion, or 16.1% year on year, to ¥3.3 billion mainly thanks to an increasein gains on sales of vehicles for which the leasing term matured, against a backdrop of strong used car market
in Japan.

6

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

Reportable segments

For the nine months
For the nine months
ended December 31, 2021 ended December 31, 2022

Change (%)

Customer Solutions

28.7

28.8

0.3

Global Business
Environment, Energy &Infrastructure

36.0

26.9

(25.2)

(1.2)

8.2

－

Aviation

2.3

0.0(96.6)

Logistics

(0.3)

12.3

－

Real Estate

6.3

7.8

24.1

Mobility

2.8

3.3

16.1

Adjustments

1.1

(1.6)

－

Total

75.7

85.9

13.4

(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 quarterly
consolidated statements of income.

Segment assets by reportable segments

Reportable segments(Billions of yen)
Change (%)

As of March 31, 2022

As of December 31, 2022

Customer Solutions

3,337.6

3,217.4(3.6)

Global Business
Environment, Energy &Infrastructure

2,316.3

2,588.9

11.8

417.9

428.8

2.6

Aviation

1,365.1

1,760.6

29.0

Logistics

1,026.7

1,187.9

15.7

Real Estate

712.7

651.8

(8.5)

Mobility

129.4

129.3

(0.1)

Adjustments

39.3

32.8

(16.7)

Total

9,345.3

9,997.8

7.0(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 year ended March 31, 2022 are reference values which are simply converted into new reportablesegments.

7

(2) Summary of Consolidated Financial Position
Compared to the figures as of March 31, 2022, total assets as of December 31, 2022 increased by ¥797.0
billion to ¥11,125.9 billion, total equity increased by ¥232.5 billion to ¥1,566.0 billion, and interest-bearing debt
(excluding lease obligations) increased by ¥443.1 billion to ¥8,509.2 billion.
(3) Explanation on Future Forecast Information including Consolidated Financial Forecast
The progress made toward the consolidated financial forecast announced on May 16, 2022 (net income
attributable to owners of the parent of ¥110.0 billion) during the nine months ended December 31, 2022 wasalmost as planned, which achieved 78.1%, and accordingly, there has been no change in the consolidated
financial forecast for the fiscal year ending March 31, 2023.

8

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly 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
Other intangible assets
Goodwill
Other
Total other intangible assets
Total intangible assets
Investments and other assets
Investment securities
Distressed receivables
OthersAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets

9(Millions of yen)
For the nine months ended
December 31, 2022
(As of December 31, 2022)

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

547,659
247,0423,317,712
1,734,477
216,771
86,569817
40,752
153,579(23,790)
6,321,591

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

3,572,947
116,089
3,689,037
222,506
18,8573,930,401

39,49526,80590,326
137,819
228,145
267,641

103,328
141,426
244,755
271,561

376,645
108,188
119,866(76,791)
527,908
4,152,758

394,832
116,902167,335(81,225)
597,8444,799,806

4,791
4,791
10,328,872

4,564
4,564
11,125,962

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
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)
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

10(Millions of yen)
For the nine months ended
December 31, 2022
(As of December 31, 2022)

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

142,682
623,990
528,420
935,123745,568

247,900

243,171

24,818
11,11014,685

13,867
10,283
11,048

2,535

1,719

222,1023,235,343

384,604
3,640,481

1,820,244
3,113,196

1,692,042
3,368,901

356,592

372,027

136

102

8,856
11,148449,886
5,760,061
8,995,404

6,533
11,655468,198
5,919,461
9,559,942

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

33,196546,884
680,675(19,231)1,241,525

14,953

13,4691,460
92,776
123

59,173
226,379
1,408

109,313300,430

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

2,191
21,871
1,566,019
11,125,962

(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, 2022 and 2021)(Millions of yen)
For the nine months ended
For the nine months ended
December 31, 2021
December 31, 2022
(April 1, 2021 - December 31, 2021) (April 1, 2022 - December 31, 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
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 valuation of investment securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on step acquisitions
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

11

1,312,987
1,073,769
239,218
157,558
81,6591,410,472
1,145,809
264,662
158,277
106,384

510
1,249

1,350
1,211

4,319

8,579

3,402
9,482

6,768
17,910

4,292
3,128
1,467
8,889
82,252

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

28,669431
29,101

1,990
7,228
9,218

106
229
335
111,018
33,971
77,046
1,297
75,748

370
2,201
2,572
116,31229,28187,0301,103
85,927(Quarterly Consolidated Statements of Comprehensive Income)(For the Nine Months ended December 31, 2022 and 2021)(Millions of yen)
For the nine months ended
For the nine months ended
December 31, 2021
December 31, 2022
(April 1, 2021 - December 31, 2021) (April 1, 2022 - December 31, 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

12

77,04687,030(16,506)(1,844)

6,423
36,811898

42,816
133,889
1,299

1,694

15,287

29,320106,367

191,447
278,478

104,692

276,650

1,674

1,828

(3) Notes to the Quarterly Consolidated Financial Statements(Segment information)
1. Changes in reportable segments, etc.
Effective April 1, 2022, the Company integrated business organizations having similar functions and roles in
preparation for the new Medium-term Management Plan which is scheduled to be started from the fiscal year
ending March 31, 2024.
As a result, the Company 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 after the change of business organizations are as follows.
Reportable segments

Main services and business description

Customer Solutions

Finance solutions for companies and government agencies, sales finance provided
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 nine months ended December 31, 2021 are converted into newreportable segments.

13

2. Information on profit or losses by reportable segments
For the nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021)
Reportable segments
Customer
SolutionsGlobalBusiness

Environment,
Energy &Infrastructure

Aviation

28,76036,042(1,266)

2,312

Logistics Real Estate

Mobility(Millions of yen)Amountrecorded in
Adjustments consolidated(Note) 1
financialstatements(Note) 2

Segment
profit

(380)

6,303

2,843

1,134

75,748(losses)(Note)1. Adjustments of segment profit (losses) consist mostly of adjustments of company-wide expenses included in selling, generaland administrative expenses not allocated to any reportable segments. It also includes a profit adjustment of ¥2,059 million
related to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit (losses) is consistent with net income attributable to owners of the parent on the quarterly consolidated
statements of income.

For the nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)
Reportable segments

Segment
profitCustomer
SolutionsGlobalBusiness

Environment,
Energy &Infrastructure

Aviation

28,844

26,952

8,291

78

Logistics Real Estate

12,302

7,822

Mobility

3,301(Millions of yen)Amountrecorded in
Adjustments consolidated(Note) 1
financialstatements(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 a profit adjustment of ¥1,967 million related
to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit is adjusted to net income attributable to owners of the parent on the quarterly consolidated statements ofincome.

3. Information on impairment losses on non-current assets and goodwill by reportable segment
For the nine months ended December 31, 2021 (April 1, 2021 to December 31, 2021)(Significant impairment losses on non-current assets)
Aviation segment recorded an impairment loss of ¥3,366 million on leased asset.
(Significant changes in goodwill)
Following the acquisition of all shares of CAI International, Inc., Logistics segment recorded goodwill of¥33,613 million, which is adjusted to reflect the finalization of the provisional accounting treatment.
For the nine months ended December 31, 2022 (April 1, 2022 to December 31, 2022)(Significant impairment losses on non-current assets)
Aviation and Logistics segments recorded impairment losses on leased assets of ¥4,550 million and¥2,407 million, respectively.
(Significant changes in goodwill)
Not applicable14

(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, 2022 by the reasonably estimated effective tax rate (after tax
effect accounting) applicable to income before income taxes for the fiscal year ending March 31, 2023.
(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 ofthe Implementation Guidance on Accounting Standard for Fair Value Measurement.
The impact of this application on the quarterly 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, lease assets
and lease liabilities are recognized in general on the balance sheet of these overseas consolidated subsidiaries for alllease transactions entered into as a lessee.
The impact of this change on the quarterly consolidated financial statements is insignificant.
(Additional information)(Accounting estimate related to the spread of COVID-19 infections)
As of December 31, 2022, there has been no significant change in the assumptions related to the impact of
COVID-19 described in (Significant Accounting Estimates) in the Annual Securities Report for the fiscal year ended
March 31 2022.
(Transfer of shares of Diamond Asset Finance Company Limited)
The Company resolved at its Board of Directors meeting held on December 23, 2022 to transfer all shares of its
consolidated subsidiary Diamond Asset Finance Company Limited and concluded a share transfer agreement on thesame day.
1. Overview of the share transfer(1) Name and business description of the subsidiary
Name of the subsidiary: Diamond Asset Finance Company Limited
Business description: Real property loans for corporations, investment condominium loans for individuals, and real
property leasing business(2) Name of the transferee
GK Pearl(A 100%-owned subsidiary of GK Emerald, in which Japan Revival Sponsor Fund IV, LPS (which is managed andoperated by Keystone Partners Co., Ltd.) has made tokumei kumiai investments)(3) Date of the share transfer
March 1, 2023 (scheduled)(4) Summary of the transaction including the legal form
Share transfer agreement with cash consideration
2. Name of the segment in which the subsidiary was included in the disclosure of segment information
Real Estate15