Financial Results
for the 1st Quarter of Fiscal Year Ending March 31, 2023
Mitsubishi HC Capital Inc.
August 10, 2022

Index◇ Highlights
I.

Financial Results for 1Q FYE3/2023

II. Segment Updates
III. Financial Forecast for FYE3/2023
IV. Appendix

1

Highlights

Gross profit increased YOY thanks to the business growth of the subsidiaries in
Europe and the U.S., profit contribution from CAI, and other factors.
Gross profit for 1Q FYE3/2023 increased by 21.9 billion yen (30.8%) YOY to 93.2 billion yen thanks tothe business growth mainly of the subsidiaries in Europe and the U.S. in Global Business segment, profit
contribution from CAI, a U.S. marine container leasing company that became our wholly-owned
subsidiary in November 2021, an increase in gain on sales related to real estate, and other factors.

Net income was almost on par with that for 1Q FYE3/2022, despite the absenceof large profits on the sale of strategic shareholdings

Net income for 1Q FYE3/2023 decreased 1.1 billion yen YOY to 32.0 billion yen, which is almost on parwith that for 1Q FYE3/2022, despite the absence of large profits on the sale of strategic shareholdings(pre-tax basis: 26.7 billion yen), which were recorded in 1Q FYE3/2022.



Net income has been almost in line with the plan, against the net income forecast for FYE3/2023 of 110.0
billion yen (progress: 29.1%).

2

I.

Financial Results for 1Q FYE3/2023

3

Financial Results for 1Q FYE3/2023
 The cumulative gross profit for 1Q FYE3/2023 increased by 21.9 billion yen, or 30.8% YOY to 93.2 billion yen, thanks to the business growth mainly of thesubsidiaries in Europe and the U.S. in the Global Business segment, profit contribution from a U.S. marine container leasing company CAI, etc.
 Quarterly net income attributable to owners of the parent was 32.0 billion yen, which is almost on par with 1Q FYE3/2022, despite the absence of large profits on thesale of strategic shareholdings (pre-tax basis: 26.7 billion yen), which were recorded in 1Q FYE3/2022. The progress against the forecast for FYE3/2023 (netincome: 110.0 billion yen) was 29.1%.

(a)

(b)

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

1Q
FYE3/2022

1Q
FYE3/2023

YOY Change(e)=(c)/(a)YOY Change(%)

1

Revenues

407.7

460.3

+52.6

Exchange Rates
Effects*5+10.0

2

Gross Profit

71.3

93.2

+21.9

+4.0

+30.8%

3

Operating Income

20.7

40.4

+19.7

+1.6

+95.2%

4

Recurring Income

20.6

41.9

+21.3

+1.3

+103.3%5

Net Income*1

33.1

32.0

-1.1

+1.0

-3.4%

6

New Transactions Volume

572.8

609.2

+36.3

+32.2

+6.3%

7

Segment Assets*2

9,345.3*7

9,604.1+258.7*8+300.2+2.8%*88ROA*3

1.4%*91.2%*10-0.2pt9ROE*3

11.2%*99.4%*10-1.8pt

10

OHR*4

63.3%

50.4%

-12.9pt(Billion Yen)

*6

*1 Quarterly net income attributable to owners of the parent*2 “Operating assets” + “equity method investments” + “goodwill” + “investment
securities, etc.”*3 Based on net income*4 SG&A expenses divided by (gross profit + non-operating income/expenses), but
SG&A expenses and non-operating income/expenses do not include credit costs*5 Effects of changes in exchange rates to be applied when incorporating results ofoverseas subsidiaries (refer to page 28 for details)*6 Figures retroactively adjusted in 1Q FYE3/2023 (refer to page 22 for details)*7 FYE3/2022*8 Change vs. end of FYE3/2022+12.9%*9 Numerator:

Annualized net income by quadrupling the quarterly net income for 1Q FYE3/2022,
retroactively adjusted in 1Q FYE3/2023
Denominator: Average of retroactively adjusted 1Q FYE3/2022 equity or total assets and
FYE3/2021 equity or total assets (calculated by adding IFRS-based figures ofHitachi Capital (HC) to those of Mitsubishi UFJ Lease & Finance (MUL) in a
simplified manner under J-GAAP as reference figures, then making adjustments
upon the integration)*10 Numerator: Annualized net income by quadrupling the quarterly net income for 1Q FYE3/2023
Denominator: Average of FYE3/2022 and 1Q FYE3/2023 equity or of FYE3/2022 and 1Q
FYE3/2023 total assets

4Increase/Decrease in Net Income
Attributable to Owners of the Parent(Billion Yen)

(2)
+0.7

(1)
+23.1

Net Income
▲1.1

▲2.6
(3)

▲26.6
(4)

33.1

1Q
FYE3/2022

(5)
+4.2

Business Growth*Credit Costs

OperatingExpenses

Positive Factor(Billion Yen)

1Q
1Q
FYE3/2022 FYE3/2023

Extraordinary
Income/Loss

32.0

Others1Q
FYE3/2023

Negative Factor
Major Factors for Changes(1) Business Growth*

70.6

93.7

 Increased YOY thanks to the business growth mainly of the subsidiaries in Europe and the U.S. in the
Global Business segment, the profit contribution from CAI, a U.S. marine container leasing company that
became our wholly-owned subsidiary in November 2021, etc.

(2) Credit Costs

5.3

4.5

 Decreased YOY because the credit costs for the Aviation and the Global Business segments decreased,
while the credit costs for a certain project in Real Estate segment were posted.

(3) Operating Expenses

44.6

47.2

 Increased YOY because of an increase in expenses associated with the promotion of business activities
primarily in overseas offices, consolidation of CAI, etc.

(4) Extraordinary Income/Loss

26.9

0.3

 Decreased YOY due to the absence of large gain on sales of strategic shareholdings, which were recorded
in 1Q FYE3/2022.

(5) Others

14.4

10.1

 A decrease in taxes, etc.

(Note) (1) to (4) are pre-tax basis. Taxes are included in (5)* Gross profit + Non-operating income/expenses(however, non-operating income/expenses do not include gain on bad debts recovered)5II. Segment Updates

6New Reportable Segments (1) The main services and business descriptions of, and organizations that are responsible for, the reportable segments are given below.

Reportable Segments

Main Services and Business Description

Organizations

Customer Solutions

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

Business Promotion Division, Corporate Business
Division, Vendor Solutions Business Division, LIFE
Business Division, East Japan/Central Japan/WestJapan Area Business Division, Machinery Business
Division, Healthcare Business Division

Global Business

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

Global Business Promotion Division, Europe Division,
Americas Division, China Division, ASEAN Division

Environment, Energy &Infrastructure

Renewable energy power generation business, energysaving business, overseas infrastructure investment
business

Environment, Energy & Infrastructure Business Division

Aviation

Aircraft leasing business, aircraft engine leasing business

Aviation Business Division

Logistics

Marine container leasing business, railway freight car
leasing business

Logistics Business Division

Real Estate

Real estate securitization finance, real estate revitalization
investment business, and real estate asset managementbusiness

Real Estate Business Division

Mobility

Auto leasing business and supplementary services

Mobility Business Division7

New Reportable Segments (2) Along with the organizational changes effective on April 1, 2022, we have changed the reportable segments as follows.
Until FYE3/2022
Reportable Segments

From FYE3/2023

Reportable Segments(Ref.*1)
FYE3/2022 (Billion Yen)

BeforeSegment
AssetsA

Customer Business

B

Account Solution

C

Vendor Solution

D

LIFE

E

Real EstateF

Environment & Renewable
EnergyG

Aviation

H

Logistics

I

Mobility
Healthcare

K

Infrastructure &Investment

L

OthersC

E*2 J

Environment, Energy &InfrastructureA

Segment
AssetsSegment
ProfitD
3,337.6

32.7

3,282.1

11.2

2,316.3

41.2

2,485.9

10.2

417.9

2.2

434.7

1.9

K*3 L*4
I*5

B
F

K

AviationG

1,365.1

5.6

1,440.6-0.9

Logistics

H

1,026.7

0.8

1,084.8

4.6

Real Estate

E

712.7

12.3

711.3

2.6

129.4

3.1

127.0

1.3

39.3

1.1

37.4

0.8

9,345.3

99.4

9,604.1

32.0

Mobility

Adjustments

Adjustments

Total

Total

*1
*2
*3
*4
*5
*6

B

Customer Solutions

Global Business

J
OthersA

Segment
Profit1Q
FYE3/2023 (Billion Yen)

H*6

FYE3/2022 results converted into new reportable segments in a simplified manner as reference values
Real estate leasing transferred from Real Estate
PFI business and corporate investment transferred from Infrastructure & Investment
Purchasing and sale of used products and trust business transferred from Others
Mobility business in Europe transferred from Mobility
Auto leasing transferred from Logistics

I8Increase/Decrease in Segment Profit and Assets
Segment Profit
0.0(Billion Yen)
1Q FYE3/2022
Total：33.1

8.3

0.8 1.1 0.9 ▲2.4

24.2

0.0

1Q FYE3/2023
Total：32.0

11.2

10.2

1.9

4.6

2.6

1.3 0.8▲0.9

Customer Solutions

Global Business

Environment, Energy & Infrastructure

Segment Profit(Billion Yen)

1Q
1Q
FYE3/2022 FYE3/2023

Aviation

Logistics

Real Estate

Mobility

Adjustments

Segment Assets
YOY

FYE3/2022

Change1Q
from
FYE3/2023 FYE3/2022

Customer Solutions

8.3

11.2

+2.9

3,337.6

3,282.1-55.5

Global Business

24.2

10.2

-14.0

2,316.3

2,485.9+169.5

Environment, Energy& Infrastructure

0.8

1.9

+1.0

417.9

434.7

+16.8

Aviation

-2.4

-0.9

+1.5

1,365.1

1,440.6+75.4

Logistics

0.0

4.6

+4.6

1,026.7

1,084.8+58.0

Real Estate

1.1

2.6

+1.4

712.7

711.3

-1.3

Mobility

0.9

1.3

+0.3

129.4

127.0

-2.4

Adjustments

0.0

0.8

+0.8

39.3

37.4

-1.9

Total

33.1

32.0

-1.1

9,345.3

9,604.1+258.7

Major Factors for Changes in Segment Profit

Increased thanks to the large gain on sales related to real estate leasing, etc.
Decreased due to the absence of the profits on the sale of strategic shareholdings posted
in 1Q FYE3/2022, despite businesses in Europe and the U.S. grew.
Increased thanks to an increase in profits from equity-method investments accompaniedwith starting operation of a wind power generation project in Europe, etc.
Posted large exchange revaluation losses related to JOLCO* and other factors, while thebusiness is on a track to recovery.
Increased thanks to the profit contribution from CAI, a U.S. marine container leasing
company that became our wholly-owned subsidiary in November 2021.
Increased thanks to the increase in gain on sales and other factors, while credit costs wereposted for a certain project in the U.S.
Increased thanks to the increase in gain on sales of vehicles for which the leasing term
matured, etc., against a backdrop of the strong used car market in Japan.
Decrease of expenses related to the business integration, etc.

(Note) Refer to page 29 and 30 for details of subsidiaries (abbreviations, etc.)* Exchange revaluation losses generated in the accounting process in relation to foreign currency-denominated borrowings for multiple
deals booked at MHC under Japanese Operating Leases with Call Option (JOLCO) originated for domestic corporate investors

9

Focused Business Domains

Customer Solutions

SocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)
1Q
FYE3/2023

YOY*2

Gross Profit

28.1

31.2

+3.0

Segment Profit

8.3

11.2

+2.9

New Transactions Volume

212.4

211.2

-1.2

Customer Finance*3

168.9

167.9

-0.9

Vendor Solution

43.5

43.3

-0.2

3,337.6

3,282.1-55.5

2,819.6

2,760.0-59.6

Customer Finance*3
Vendor Solution

518.0

522.1

Mobility

GlobalAssetsComment

1Q
FYE3/2022*1

Segment Assets

Sales
Finance+4.1*1 Segment assets figure is for FYE3/2022*2 Segment assets figure is vs. end of FYE3/2022*3 Strategic shareholdings, purchasing and sale of used products, etc. are included

Gross profit increased YOY thanks to the large
gain on sales related to real estate leasing, etc.
 Segment profit increased YOY thanks to nonoperating income (insurance claim income) posted
for a certain deal, etc., in addition to an increase ingross profit.
 Segment assets decreased compared to the end of
FYE3/2022 due to the impact of a decrease in newtransactions volume, etc.
Segment Assets of the Customer Solutions by Transaction Type
(1Q FYE3/2023)

Installment/Loans
15.3%

Others5.8%

Total
3,282.1
Billion Yen

Leasing
78.9%

10

Focused Business Domains

Global BusinessSocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)*1
1Q
FYE3/2023

YOY*3

Gross Profit

25.7

31.2

+5.5

Segment Profit

24.2

10.2

-14.0

Europe

3.8

5.5

+1.7

Americas

1.5

3.8

+2.3

China

0.4

0.4

0.0

ASEAN

0.2

0.6

+0.3

Others

18.2

-0.1

-18.3

263.4

322.3

+58.9

Europe

156.6

177.7

+21.0

Americas

73.7

98.0

+24.2

China

17.6

22.7

+5.0

ASEAN

15.3

23.8

+8.4

-

-

-

2,316.3

2,485.9+169.5

Europe1,157.2

1,219.6+62.4

Americas

718.7

803.7

+85.0

China

221.7

232.4

+10.6

ASEAN

213.8

223.8

+10.0

Others

4.8

6.2

+1.3

OthersSegment Assets

Mobility

GlobalAssetsComment

1Q
FYE3/2022*2

New Transactions Volume

Sales
Finance

Gross profit increased YOY as a result of businessgrowth thanks to proactive business activities
mainly in Europe and the U.S.
 Segment profit decreased YOY due to the absenceof large profits on the sale of strategic
shareholdings posted in 1Q FYE3/2022 and otherfactors, while credit costs decreased.
 Segment assets increased compared to the end of
FYE3/2022 thanks to an increase in newtransactions volume in Europe and the U.S.,
exchange rates effects, etc.
Segment Assets*1 of the Global Business by Region(1Q FYE3/2023)
ASEAN
9.0%

Others
0.2%

China
9.4%
Total
Europe2,485.9
Billion Yen 49.1%

Americas32.3%*1 As the figures are for the Global Business segment, those are different from the results of theoverall global business of Mitsubishi HC Capital*2 Segment assets figure is for FYE3/2022*3 Segment assets figure is vs. end of FYE3/2022

11

Focused Business Domains

Environment, Energy & Infrastructure
Major Figures (Billion Yen)
1Q
FYE3/2023

YOY*2

Gross Profit

3.4

3.2

-0.1

Segment Profit

0.8

1.9

+1.0

New Transactions Volume

11.3

17.7

+6.4

Segment Assets

417.9

434.7

+16.8

98.0

97.7

-0.2

226.4

230.7

+4.3

90.2

103.2

+13.0

3.2

2.9

-0.3

Others

*1 Segment assets figure is for FYE3/2022*2 Segment assets figure is vs. end of FYE3/2022

GlobalAssetsSegment profit increased YOY thanks to anincrease in profits from equity-method investments
accompanied with starting operation of a wind
power generation project in Europe, etc.
 Segment assets increased compared to the end of
FYE3/2022 thanks to large transactions in domestic
solar power-related projects and infrastructurerelated projects, exchange rates effects, etc.
Output of Renewable Energy Power Generation Business Based on
the Equity Ownership (1Q FYE3/2023)

Output in Operation of Renewable Energy Power Generation Business
Based on the Equity Ownership*3*4 (MW)FYE3/2022

1Q
FYE3/2023

Change from
FYE3/2022

1,227

1,369

+141

Solar Power

951

1,013

+61

Domestic

934

984

+49

Overseas

16

29

+12

Wind Power

273

337

+63

Domestic

190

190

-

Overseas

83

147

+63

2

18

+16

OthersMobility(1) Output in Operation

Total

Sales
Finance

Comment

1Q
FYE3/2022*1

Finance
Environment and Energy
Business
Infrastructure BusinessSocialEnvironment
Infrastructure& Energy& Life(2) Combined with Projects underDevelopment(but have not begun operation)
Others 2.6%

Others 1.4%

Wind Power
24.6%

Wind Power
29.3%

Total
1,369MW
Solar Power
74.0%

Total
1,649MW
Solar Power
68.1%*3 Management accounting figures*4 Output based on the equity ownership in domestic and overseas renewable energy business. The output
corresponds to the segment assets of the part of environment and energy business and infrastructure business

12

Focused Business Domains

Aviation

SocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)
1Q
FYE3/2023

YOY*2

Gross Profit

3.6

6.7

+3.1

Segment Profit

-2.4

-0.9

+1.5

New Transactions Volume

33.2

13.5

-19.6

1,365.1

1,440.6+75.4

Aircraft Leasing (JSA)

995.1

1,052.5+57.3

Engine Leasing (ELF)

299.5

314.3

+14.7

Aircraft Leasing, etc. (MHC)

70.4

73.7

+3.3

*1 Segment assets figure is for FYE3/2022*2 Segment assets figure is vs. end of FYE3/2022

GlobalAssets

Gross profit increased YOY thanks to an increase in lease revenue,
the absence of the expenses related to the modification of contract
terms for certain existing transactions posted in 1Q FYE3/2022, etc.

Segment profit declined due to the posting of exchange revaluation
losses on foreign currency-denominated borrowings in JOLCO*5,
despite an increase in gross profit and a decrease in credit costs.



Our aircraft leasing business has a highly liquid portfolio centeringon young aged and next-generation narrow-body aircraft*6 , and theaircraft off-leasing ratio as of the end of June 2022 remained low.

Owned Aviation-related Assets (1Q FYE3/2023)(1) Aircraft Assetby Type/Region

Owned Aviation-related Assets*3*4
FYE3/2022

1Q
FYE3/2023

Number of Aircraft (JSA)

191

191

-

Number of Aircraft
Purchased

22

1

-

Number of Aircraft Sold

8

1

-

4.5 years

4.7 years+0.2 years

Average Age (JSA)

Mobility

Comment

1Q
FYE3/2022*1

Segment Assets

Sales
Finance

Change from
FYE3/2022

Average Leasing Term (JSA)

7.3 years

7.1 years-0.2 years

Number of Aircraft Engines
(ELF)

341

337

-4

*3 Management accounting figures*4 Figures before consolidated adjustments*5 Exchange revaluation losses generated in the accounting process in relation to foreign
currency-denominated borrowings for multiple deals booked at MHC under JapaneseOperating Leases with Call Option (JOLCO) originated for domestic corporate investors(2) Aircraft Engine
by Region

Middle East & Others
7.5%

Middle East & Others
8.4%

Others
10.5%

Total
191
Aircraft
Narrow Body*⁶
89.5%

Europe22.6%

Total Americas
38.7%
191
Aircraft

Asia/Oceania
31.2%

Europe18.0%

Total
Americas337
Engines 47.9%

Asia/Oceania
25.7%*6 Single-aisle aircraft mainly used for domestic and short-distance flights(A320 series of Airbus, B737 series of Boeing, etc.)13

Focused Business Domains

Logistics

SocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)

Sales
Finance

Mobility

GlobalAssetsComment

1Q
FYE3/2022*1

1Q
FYE3/2023

YOY*2

 Segment profit increased YOY thanks to profit

Gross Profit

1.7

8.5

+6.7

Segment Profit

0.0

4.6

+4.6

New Transactions Volume

19.1

15.5

-3.5

1,026.7

1,084.8+58.0

Marine Containers

736.5

773.1

+36.6

Railway Freight Cars

223.2

253.9

+30.6

Shipping

66.9

57.7

-9.2

contribution from CAI, a U.S. marine container
leasing company that became our wholly-owned
subsidiary in November 2021, and the steady
performance of BIL.
 Segment assets increased compared to the end of
FYE3/2022 owing to exchange rates effects, etc.,
despite the decline in owned fleets accompaniedwith the sale of used marine containers.

Segment Assets

History of Marine Container Fleet of BIL and CAI (TEU 1,000)*6*1 Segment assets figure is for FYE3/2022*2 Segment assets figure is vs. end of FYE3/2022

Owned Logistics-related Assets*3
FYE3/2022

1Q
FYE3/2023

Change from
FYE3/2022

Marine Container Fleet(TEU 1,000*4)

3,492

3,481

-11

Marine Container Fleet(CEU 1,000*5)

3,701

3,700

0

Number ofRailway Freight Cars

2,766

1,465

3,203

2,980

1,688

1,611

1,300

1,368

1,515

FYE3/2019

FYE3/2020

FYE3/2021

BIL
21,81822,004

CAI

3,492

3,481

FYE3/2022

1Q FYE3/2023

BIL+CAI+186*6 The figures of CAI for FYE3/2019 through FYE3/2021 are pre-acquisition figures provided
for reference*3 Management accounting figures*4 TEU: Twenty Foot Equivalent Unit (unit equivalent to the capacity of a 20-feet long container)*5 CEU: Cost Equivalent Unit (unit equivalent to the cost of a 20-feet long container)

14

Focused Business Domains

Real EstateSocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)

Sales
Finance

Mobility

GlobalAssetsComment

1Q
FYE3/2022*1

1Q
FYE3/2023

YOY*2

 Segment profit increased YOY thanks to the sale of

Segment Profit

3.6
1.1

8.1
2.6

+4.4
+1.4

New Transactions Volume

25.9

23.2

-2.7

Segment Assets

712.7
145.7
121.2
24.5
56.8
39.6
17.2

711.3
142.6
120.8
21.7
61.6
41.5
20.1

-1.3
-3.1
-0.3
-2.7
+4.7
+1.8
+2.9

certain real estate assets for rent while credit costs
were posted in a certain project in the U.S.
 Segment assets decreased compared to the end of
FYE3/2022 owing to the sale of certain real estate
assets for rent.

193.0

196.5

+3.5

Gross Profit

Securitization (Debt)
Domestic*3
Overseas
Securitization (Equity)
Domestic*3
Overseas
Real Estate Revitalization
Investment
Real Estate Rental
Business

85.5

81.2

-4.3

Other Real Estate Finance

231.4

229.3

-2.0

*1 Segment assets figure is for FYE3/2022*2 Segment assets figure is vs. end of FYE3/2022*3 The amount is booked by the Real Estate Business Department

Domestic Securitization
Real Estate Revitalization
Investment(1) By Asset Type
Residence
2.0%

Logistics
16.6%

FYE3/2022

1Q
FYE3/2023

Change from
FYE3/2022

124.2
33.6

123.5
33.2

-0.6
-0.4

90.5

90.3

-0.2

(2) By Region
NagoyaMetropolitan
District
7.8%

Others
9.7%

Total
123.5
Billion Yen

Commercial
Facility
18.6%

Amount of Equity Contribution for Domestic Securitization/
Real Estate Revitalization Investment*4*5 (Billion Yen)

Total

Amount of Equity Contribution for Domestic Securitization/
Real Estate Revitalization Investment*4*5 (1Q FYE3/2023)

Office
29.8%

Hotel
23.3%

Others
9.5%

Total
123.5
Osaka
Metropolitan Billion Yen Tokyo
District
Metropolitan
24.8%
District
57.9%*4 Management accounting figure (total of equity investment in domestic securitization/
real-estate revitalization). The figure is not equal to the equity balance of segment assets
because some investees are consolidated subsidiaries and investment and capitalare offset in financial accounting*5 Relevant segment assets for domestic securitization are 39.6 billion yen for FYE3/2022
and 41.5 billion yen for 1Q FYE3/2023. Those for real estate revitalization investment are
193.0 billion yen for FYE3/2022 and 196.5 billion yen for 1Q FYE3/2023

15

Focused Business Domains

MobilitySocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)

Mobility

GlobalAssetsComment

1Q
FYE3/2022*1

1Q
FYE3/2023

YOY*2

Gross Profit

2.2

2.5

+0.3

Segment Profit

0.9

1.3

+0.3

New Transactions Volume

7.2

5.4

-1.7

129.4

127.0

-2.4

FYE3/2022

1Q
FYE3/2023

Change from
FYE3/2022

358

355

-2

Segment Assets

Sales
Finance*1 Segment assets figure is for FYE3/2022*2 Segment assets figure is vs. end of FYE3/2022

 Gross profit increased YOY thanks to the increasein gain on sales of vehicles for which the lease term
matured, etc., against a backdrop of the strong
used car market in Japan.
 Segment profit increased YOY thanks to theincrease in gross profit and in equity-method
investment gains, etc.
 Segment assets decreased compared to the endof FYE3/2022 due to the decline in newtransactions volume as a result of delay in new car
delivery, responding to the shortage ofsemiconductor.

Number of Operational Vehicles*3 (Unit: 1,000)

Number of Operational
Vehicles*4*3 Management accounting figures*4 Including the number of operational vehicles of equity-method affiliates

16III. Financial Forecast for FYE3/2023

17

Financial Forecast for FYE3/2023
 The progress against the forecast for FYE3/2023 (net income: 110.0 billion yen) was 29.1%, which is almost
in line with the plan.
FYE3/2022

FYE3/2023*3*4

YOY
ChangeYOY
Change (%)

1

Net Income Attributableto Owners of the Parent (Billion Yen)

99.4

110.0

+10.5

+10.7%

2

ROA*1

1.0%

1.1%

+0.1pt

-

3

ROE*1

8.0%

8.2%

+0.2pt

-

4

OHR*2

54.6%

54.1%

-0.5pt-5

Dividend per Share (Yen)

28.00

31.00

+3.00

-

6

Payout Ratio

40.4%

40.5%

+0.1pt-*1 Based on net income*2 SG&A expenses divided by (gross profit + non-operating income/expenses), but SG&A expenses and non-operating
income/expenses do not include credit costs*3 Forecast as of August 10, 2022
*4 The assumed foreign exchange rates are $1=¥120, £1=¥158, €1=¥134

18

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

Dividend History
57.1%*2

41.1%

29.1%

30.0%

30.5%

31.4%

30.4%

31.5%

34.3%

40.4%

40.5%

Expect dividend
increase by 3 yen per share

25.3%
27.8%

25.2%
18.9%

19.2%

20.0%

21.8%
23.5

25.0

25.5

FYE3/2019

FYE3/2020

FYE3/2021

28.0

31.0

18.0
8.0

9.5

FYE3/2014

FYE3/2015

12.3

13.0

FYE3/2016

FYE3/2017

FYE3/2018

Dividend per Share (Yen)*¹

Payout Ratio*¹

FYE3/2022

FYE3/2023(Forecast)

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

19

IV. Appendix

20

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

Targets

Focused Business Domains
Social Infrastructure &Life

Environment &Energy Target: Social infrastructure
related to industrial
infrastructure/lifestyles

 Target: All aspects ofenergy creation, energy
storage, and energy
conservation (mainly
renewable energy)

 Provide value toward therealization of more
prosperous lives byimplementing real estate
financing, business
operation, and social
infrastructure investment

 Develop joint business withstrategic partners in addition
to project investment andfinancing

Sales Finance

Mobility

Global Assets

 Target: Assets for businessthat underpins economic
activity (e.g. industrial
machinery,
telecommunications
equipment, OA equipment) Target: Automobile leases
and advanced mobility
services business Target: High-added-value
assets that exhibit highliquidity and value
throughout the world

 Achieve advancements todeliver data-driven solutions

 Accelerate labor-saving andstreamlining throughdigitalization

 Promote diverse asset
business based on
operating leases

Segments

Customer Solutions
Global Business
Environment, Energy & Infrastructure

Real Estate

Mobility

Aviation

Logistics

21

Impact of the Retroactive Adjustment in FYE3/2022
 The goodwill associated with the business integration in April 2021 was finalized in 2Q FYE3/2022, and a “431 million yen
negative goodwill” was recorded.
 Because the amount of goodwill is calculated on a tentative basis * as of 1Q FYE3/2022, we made retroactive adjustments torecord the “431 million yen negative goodwill” in 1Q FYE3/2022.
Impact of the Retroactive Adjustments in FYE3/2022

1Q FYE3/2022(Million Yen)

Item

Before Adjustments

After Adjustments

Difference(Increase/Decrease)

Extraordinary Income

26,75527,186+431

Quarterly Net Income

32,73733,169+431

Lease Receivables andInvestments in Leases

3,115,581

3,116,013+431

590,047

590,479+431

9,481,290

9,481,722+431

PL Items

BS Items

Retained Earnings

Total Assets* The goodwill and negative goodwill were not recorded in 1Q FYE3/2022.

22

Segment Profit (by Quarter)
1Q(Billion Yen)

FYE3/2023

FYE3/2022

1Q

Notes for FYE3/2023(Pre-tax Basis)

YOY Change

1

Customer Solutions

8.3

11.2

+2.9

Large gain on sales related to real estate leasing:approx. JPY2.0Bn (+)
Non-operating income in certain deals (insurance claim
income): approx. JPY1.0Bn (+)

2

Global Business

24.2

10.2

-14.0

Absence of the profits on the sale of strategic shareholdings
posted in 1Q FYE3/2022: JPY26.7Bn (-)

3

Environment, Energy &Infrastructure

0.8

1.9

+1.0

Increase in profit from equity-method investment
accompanied with the starting operation of a wind power
generation project in Europe: approx. JPY1.0Bn (+)

4

Aviation

-2.4

-0.9

+1.5

Absence of the expenses related to modification of terms forcertain existing contracts posted in 1Q FYE3/2022:
approx. JPY2.0Bn (+)
Exchange revaluation losses in JOLCO*: approx. JPY3.5Bn (-)

5

Logistics

0.0

4.6

+4.6

Gain on sales of owned assets: approx. JPY1.0Bn (+)

6

Real Estate

1.1

2.6

+1.4

Gain on sales of owned assets: approx. JPY4.0Bn (+)
Large credit costs: approx. JPY2.0Bn (-)

7

Mobility

0.9

1.3

+0.3

-

8

Adjustments

0.0

0.8

+0.8

Decrease in expenses related to the business integration:
approx. JPY1.0Bn (-)

9

Total Segment Profit

33.1

32.0

-1.1

* Exchange revaluation losses generated in the accounting process in relation to foreign currency-denominated borrowings
for multiple deals booked at MHC under Japanese Operating Leases with Call Option (JOLCO) originatedfor domestic corporate investors

23

New Transactions Volume by Segment(Billion Yen)

1Q FYE3/2022

1Q FYE3/2023

YOY Change

YOY Change (%)

1

Customer Solutions

212.4

211.2

-1.2

-0.6%

2

Global Business

263.4

322.3

+58.9

+22.4%

3

Environment, Energy &Infrastructure

11.3

17.7

+6.4

+56.7%

4

Aviation

33.2

13.5

-19.6

-59.2%

5

Logistics

19.1

15.5

-3.5

-18.6%

6

Real Estate

25.9

23.2

-2.7

-10.6%

7

Mobility

7.2

5.4

-1.7

-24.0%

8

Total New Transactions
Volume

572.8

609.2

+36.3

+6.3%

24

Credit Costs by Segment(Billion Yen)

1Q FYE3/2022

1Q FYE3/2023

YOY Change

1

Customer Solutions

0.4

0.2

-0.1

2

Global Business

2.5

0.6

-1.8

3

Environment, Energy &Infrastructure

0.0

0.6

+0.6

4

Aviation

2.4

0.7

-1.6

5

Logistics

0.0

0.0

0.0

6

Real Estate

0.0

2.1

+2.1

7

Mobility

0.0

0.0

0.0

8

Adjustments

0.0

0.0

0.0

9

Total Credit Costs

5.3

4.5

-0.7

25

Financial Performance: Profit & Loss Statement
1Q FYE3/2021*1

1Q FYE3/2022*2

1Q FYE3/2023(Million Yen)

1

Revenues

2

Cost of Revenues

3

Cost of Funds

4

Gross Profit

5

SG&A Expenses

6

Personnel Expenses

7

Non-personnel Expenses

8

Allowance

9

Operating Income

10

Recurring Income

11

Extraordinary Income

12

Extraordinary Loss

13

Quarterly Net Income
Attributable to Ownersof the Parent

419,756
341,892
25,16977,864
49,17722,55519,991
6,631
28,68730,627384
0-407,735-2.9%
336,428-1.6%
18,538-26.3%
71,306-8.4%
50,573+2.8%
23,964+6.2%
20,716+3.6%
5,892-11.1%
20,733-27.7%
20,622-32.7%
27,186+6978.4%
229-

460,347+12.9%
367,078+9.1%
25,801+39.2%
93,269+30.8%
52,797+4.4%
26,724+11.5%
20,564
-0.7%
5,507
-6.5%
40,471+95.2%
41,931+103.3%300-98.9%
0-

20,641

33,16932,046-+60.7%-3.4%(Note) Percentage figures (%) in the lower column are YOY*1 Figures for 1Q FYE3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis) converted into
J-GAAP basis in a simplified manner, and are presented as reference values*2 Figures retroactively adjusted in 1Q FYE3/2023 (refer to page 22 for details)

26

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

Cash and Cash Equivalents

2

Total Equity

3

Total Assets

4

Segment Assets

5

Operating Assets

6

Equity-Method
Investments

7

Goodwill, Investment
Securities, etc.

8

Impaired Assets

9

Allowance

10

Net Balance of Impaired
Assets11

Equity Ratio

12

ROE*2

13

ROA*2

FYE3/2021*1(end-Mar. 2021)
603,3211,250,216
9,730,027
8,604,876
8,259,624
140,291
204,960
95,54358,06637,476
12.5%-(Note) Percentage figures (%) in the lower column are vs. end of the previous year
*1 Figures for FYE3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis)converted into J-GAAP basis in a simplified manner, and are presented as reference values*2 Based on net income*3 Annualized net income by quadrupling the net income for 1Q FYE3/2023

FYE3/2022(end-Mar. 2022)
540,942-10.3%
1,333,467+6.7%
10,328,872+6.2%
9,345,376+8.6%
9,058,273+9.7%
142,469+1.6%
144,633-29.4%
108,188+13.2%
76,791+32.2%
31,397-16.2%
12.7%+0.2pt8.0%
1.0%-

1Q FYE3/2023(end-Jun. 2022)
559,474+3.4%
1,426,825+7.0%
10,733,690+3.9%
9,604,123+2.8%
9,298,754+2.7%
152,137+6.8%
153,231+5.9%
116,099+7.3%
84,402+9.9%
31,696+1.0%
13.1%+0.4pt
9.4%*3+1.4pt
1.2%*3+0.2pt27

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

FYE3/2021*1(end-Mar. 2021)

Total Funding

15

Indirect Funding

16

Direct Funding

17

CP

18

Securitization

19

Corporate Bonds

20

Direct Funding Ratio

21

Long-Term Funding Ratio

22

Foreign Currency Funding Ratio

FYE3/2022(end-Mar. 2022)

1Q FYE3/2023(end-Jun. 2022)

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

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

8,425,738+4.5%
4,742,590+5.0%
3,683,147+3.7%
827,981+21.3%
570,440-5.6%
2,284,726
+0.9%

45.1%
66.8%
43.1%
-

44.0%
-1.1pt65.6%-1.2pt49.4%+6.3pt43.7%-0.3pt63.1%-2.5pt49.3%-0.1pt(Note) Percentage figures (%) in the lower column are vs. end of the previous year
*1 Figures for FYE3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis)converted into J-GAAP basis in a simplified manner, and are presented as reference values

Exchange Rate Applied to Financial Results of Major Overseas Subsidiaries*2

23
24

Major Overseas Subsidiaries withFY Ending in December

Major Overseas Subsidiaries with FY Ending in March

1Q FYE3/2022*3

1Q FYE3/2023

1Q FYE3/2022*3

Exchange Rate Applied to PL

1$＝JPY105.90

1$＝JPY116.20

1£＝JPY153.21

1$＝JPY109.49

1£＝JPY162.96

1$＝JPY129.57

Exchange Rate Applied to BS

1$＝JPY115.02

1$＝JPY122.39

1£＝JPY160.89

1$＝JPY122.39

1£＝JPY165.71

1$＝JPY136.68*2 Major overseas subsidiaries with⇒ Average exchange rates during Jan. through Mar. applied to PL
FY ending in December
FY3/2022 BS: exchange rate as of end-Dec. 2021 is applied
1Q FYE3/2023 BS: exchange rate as of end-Mar. 2022 is applied
Major overseas subsidiaries with⇒Average exchange rates during Apr. through Jun. applied to PL
FY ending in MarchFYE3/2022 BS: exchange rate as of end-Mar. 2022 is applied
1Q FY3/2023 BS: exchange rate as of end-Jun. 2022 is applied

1Q FYE3/2023*3 Exchange Rate Applied to BS is that for FYE3/2022 BS

28

Major Companies (1)GlobalBusiness

Consolidated/
Equity-method

Main BusinessLeasing, etc.

Mitsubishi HC Capital
America

Consolidated

Leasing and financial business

Sales Finance

Mitsubishi HC Capital(U.S.A.)

Consolidated

Leasing, etc.

ENGS Commercial
Finance*3<ENGS>

Consolidated

Sales finance, etc.

Mitsubishi HC Capital
Canada Leasing

Consolidated

Leasing and financial business

Mitsubishi HC Capital
Leasing (Beijing)

Consolidated

Leasing, etc.

Mitsubishi HC Capital(Shanghai)

Consolidated

Leasing, etc.

Mitsubishi HC Capital(Hong Kong)

Consolidated

Leasing, etc.

Mitsubishi HC Capital Asia
Pacific

Consolidated

Leasing, etc.

Mitsubishi HC Capital(Singapore)

Consolidated

Leasing, etc.

Mitsubishi HC Capital and
Finance Indonesia

Consolidated

Leasing, etc.

Arthaasia FinanceConsolidated

Leasing and financial businessBangkok Mitsubishi HC
CapitalConsolidated

Leasing, etc.

Mitsubishi HC Capital(Thailand)

Consolidated

Leasing, etc.

Mitsubishi HC Capital
Malaysia

Consolidated

Leasing, etc.

Mitsubishi HC Business Lease

Consolidated

DFL Lease

Consolidated

Leasing, etc.

Shutoken Leasing

Consolidated

Leasing, etc.

DRS

Consolidated

Rental and leasing, etc.

Sekisui Leasing

Consolidated

Leasing, etc.

Mitsubishi HC Capital Property

Consolidated

Real estate leasing

Mitsubishi HC Capital Community

Consolidated

Real estate development andmanagement, leasing

Japan Medical Lease

Consolidated

Medical equipment andreal estate leasing

Healthcare Management Partners

Consolidated

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

U-MACHINE

Consolidated

Purchase and sale of used goods

MHC Reuse Services

Consolidated

Purchase and sale of used goods

Mitsubishi HC Capital UK

Consolidated

Leasing and financial business

MHC Mobility [Germany] *1

Consolidated

Auto leasing and rental

MHC Mobility [Netherlands] *1

Consolidated

Auto leasing

MHC Mobility [Poland] *1

Consolidated

Auto leasing

Mobility Mixx

Consolidated

MaaS*2 businessAmericas-

China Region

Mitsubishi HC Capital/
Domestic Business Branches

Segment

GlobalBusiness

ASEAN

Main Business

Major Companies

EuropeCustomer
Solutions

Major Companies

Consolidated/
Equity-method

Segment(Note) Company names are as of August 10, 2022 and words inside of “< >” denote abbreviations of companies*1 Office location*2 Abbreviation of “Mobility as a Service”*3 Operating company of ENGS Holdings Inc.

29

Major Companies (2)Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/
Environment & Energy Business
Department-

Investment in environment andenergy-related companies

Mitsubishi HC Capital/
Environment & Energy Sales
Department-

Environment-related andrenewable energy business-

Renewable energy andinfrastructure business

Consolidated

Operation and asset
management of renewableenergy business

Segment

Major Companies

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

HSE

Consolidated

Wind power generation business

HGE

Consolidated

Solar power generation businessJapan Infrastructure Initiative <JII>

Consolidated

Infrastructure investment andloan

Mitsubishi HC Capital/
Aviation Business Department

Aviation-

Segment

Major Companies

Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/
Real Estate Business Department-

Real estate securitization finance

Mitsubishi HC Capital Realty

Consolidated

Real estate revitalization
investment

Mitsubishi HC Capital Realty
Advisors

Consolidated

Asset management services

Diamond Asset FinanceConsolidated

Real estate rental and other realestate financeMiyuki Building

Consolidated

Real estate rental

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

Consolidated

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

Equity-method

Asset management services forlogistics real estate

Logi Flag Development

Equity-method

Asset management services forlogistics real estate-

Investment in mobility-relatedcompanies

Mitsubishi HC Capital Auto Lease

Consolidated

Auto leasing

Takari Kokoh Sejahtera

Consolidated

Auto leasing

Mitsubishi Auto Leasing

Equity-method

Auto leasing

Real Estate

Japanese Operating Lease withcall option, etc.

Jackson Square Aviation <JSA>

Consolidated

Aircraft leasing

Engine Lease Finance <ELF>

Consolidated

Aircraft engine leasing, part-out

Mitsubishi HC Capital/
Logistics Business Department-

Ship finance

CAI International <CAI>

Consolidated

Marine container leasing

Beacon Intermodal Leasing <BIL>

Consolidated

Marine container leasing

PNW Railcars

Consolidated

Railway Freight car leasing

Mitsubishi HC Capital/
Mobility Business Department

Mobility

Logistics(Note) Company names are as of August 10, 2022 and words inside of “< >” denote abbreviations of companies

30Inquiries

Corporate Communications Department
I

Inquiries
TEL： +81 3-6865-3002

II

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

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

 These forward-looking statements are inherently subject to a number of risks and uncertainties that could
cause the Group’s actual results, performance, achievements, financial position etc. to differ materially fromthe information expressed or implied by these forward-looking statements, which is based on assumptions
and beliefs in light of information currently available to the management of Mitsubishi HC Capital Inc. at thetime of publication. Accordingly, due to various risks and uncertainties, the statements are not a guaranteeof future performance or developments. We may not be successful in implementing our business strategy,
and management may fail to achieve its targets for a wide range of possible reasons.
 Amounts less than one unit are omitted in this presentation, which may cause fraction errors in total
amounts. We undertake no obligation to update or correct any forward-looking statements after the date ofthis presentation. The information set forth in this presentation is subject to change without notice.
 This presentation is not intended to solicit, offer, or sell investments in any jurisdiction, and should not be
the sole basis for making investment and other decisions. The reader is cautioned not to place undue
reliance on forward-looking statements.
 This presentation is created in Japanese and translated into English. The Japanese text is the original andthe English text is for reference purposes. If there is any conflict or inconsistency between these two texts,
the Japanese text shall prevail.

32