Greetings, everyone. This is Taiju Hisai. I assumed the position of President& CEO inApril this year.
Although I’m sure you are all very busy, thank you kindly for taking the time to attend thisbriefing on our financial results for FYE3/2023 and the Medium-term Management Plan.
In addition to those of you attending in person, we are also joined by many people
watching live online. Thank you all.
It has already been more than two years since the business integration of Mitsubishi UFJ
Lease & Finance and Hitachi Capital in April, 2021. The post-merger integration process
we laid out at the beginning of the integration was completed as planned at the end of
March this year, and so we will finally begin our Medium-term Management Plan fromthis fiscal year, the first step toward achieving Our 10-year Vision, “Together we innovate,challenge and explore the frontiers of the future.” I will be referring to this Medium-termManagement Plan as 2025 MTMP throughout this presentation.
It is not an overstatement to say that, in a way, this fiscal year represents a new step for
the Mitsubishi HC Capital Group, and our true beginning. As President & CEO, I shallstand at the forefront, and work to guide and enhance our Group so that we can makethis new start successfully.
I hope that you continue to expect more great things from Mitsubishi HC Capital in thefuture.
Today, we will hear from Director and Managing Executive Officer Mr. Haruhiko Sato
about our financial results for FYE3/2023, and our financial forecast for FYE3/2024.
Following this, I would like to talk about overview of the 2025 MTMP and our mindset, as
well as introduce some of our initiatives toward accomplishing the plan.
First of all, I must note our overall financial results and some specific points. Please referto the Highlights on page 4 of the material “Financial Results for the Fiscal Year Ended
March 31, 2023” in front of you.

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The upper part describes our financial results for FYE3/2023. Net income exceeded theforecast by 6.2 billion yen, coming in at 116.2 billion yen. Considering this, the annual
dividend per share increases by 2 yen beyond the forecast, up 5 yen YoY to 33 yen.
The middle part describes our financial forecast for FYE3/2024. We expect the net
income of 120.0 billion yen. Dividend per share, in line with the forecast payout ratio of40% or more in the 2025 MTMP, the dividend per share is forecast to be 37 yen,increase by 4 yen YoY.
Finally, although I will talk about the 2025 MTMP later, at the bottom of the page you can
see that our financial targets at the final year of the 2025 MTMP (FYE3/2026) are the net
income of 160.0 billion yen, ROA of approximately 1.5%, and ROE of approximately 10%.
I will explain more in greater detail later.
For now, I will hand over to Mr. Sato.

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This is Haruhiko Sato, Director and Managing Executive Officer.
I will explain the parts “II. Financial Results for FYE 3/2023,” “III. Segment Updates,” and“IV. Financial Forecast for FYE 3/2024” of the material.
Please look at page 6.

5Here, I will explain our financial results.
At the top section of the table, the column “(a)” shows the results for FYE 3/2022. Next tothat in the orange column “(b)” are the figures for FYE 3/2023, the results we announced
yesterday. Right next to that, the columns “(c)” to “(e)” show YoY changes, the impact offluctuation in exchange rates applied to P/L, and YoY changes as a percentage.
First, Gross Profit in row 2 increased by 22.6 billion yen, or 6.8% YoY, to 357.3 billionyen. This is mainly thanks to the full-year profit contribution from CAI, a marine container
leasing company in the U.S.A. which we acquired in November 2021.
Net Income in row 5 increased by 16.8 billion yen, or 16.9% YoY, to 116.2 billion yen.
This is mainly thanks to an increase in gross profit and a decrease in credit costs,
despite the absence of large gains on sales of strategic shareholdings, which wererecorded as extraordinary income in FYE 3/2022.
As a result, the net income exceeded the forecast for FYE 3/2023 of 110.0 billion yen by
6.2 billion yen, achieving a record-high net income.
Also related to the net income, column “(d)” shows that the impact of the fluctuation in
exchange rates on the P/L of overseas subsidiaries was a positive 7.8 billion yen. Inaddition, the all-in impact of the fluctuation in exchange rates on net income, the sum of
the positive 7.8 billion yen and the negative 2.1 billion yen caused by revaluation losses
related to foreign currency borrowings with JOLCO, was a positive 5.7 billion yen, as
described in the pink bubble.
The lower part of the page from row 8 describes our management targets. Row 8 shows
Dividend per Share, and as we heard from Mr. Hisai earlier, our forecast dividend is now
33 yen per share, 2 yen higher than what we predicted at the start of FYE 3/2023.
With regard to other management targets, we can see that ROA and ROE were 1.1%
and 8.2% respectively, and these figures are the same as our initial forecast. On theother hand, OHR increased by 1.7 pt to 55.8%, compared to our initial forecast.
Next, please proceed to page 7.

6Here, I will explain the factors for the change in Net Income Attributable to Owners of theParent using this waterfall chart.
The leftmost bar shows the net income of 99.4 billion yen for FYE 3/2022. The rightmost
bar in red shows the net income of 116.2 billion yen for FYE 3/2023. In the middle are
the factors for the increase and decrease.
Please note that (1) through (4) are pre-tax basis, and the final net income is calculated
after deducting taxes and other expenses, etc., shown in (5).
Item (1), Business Growth, shows a YoY increase of 25.9 billion yen. This was thanks to
the full-year profit contribution of CAI, which became a wholly-owned subsidiary inNovember 2021, the business growth of subsidiaries in the Americas in the Global
Business segment, and other factors.
Item (2), Credit Costs, resulted in a decrease of 21.5 billion yen YoY. This was mainly
thanks to a reactionary fall in large credit costs recorded in FYE 3/2022 in the Customer
Solutions segment, and decreases in credit costs for the Aviation segment, Global
Business segment, and other segments.
Item (3), Operating Expenses, ended with an increase of 18.6 billion yen YoY. This wasdue to the consolidation of CAI, an increase in expenses associated with the promotionof business activities mainly in overseas subsidiaries, and other factors.
Item (4), Extraordinary Income and Loss, resulted in a decrease of 22.9 billion yen YoY.
This was due to the absence of the large gains on sales of strategic shareholdings
recorded in FYE 3/2022, despite the posting of gains on revaluation of securities at a
European subsidiary in the Global Business segment.
Item (5), Others, had a positive impact of 10.9 billion yen YoY, mainly thanks to decreasein taxes.
Taken as a whole, the above has resulted in net income for FYE 3/2023 of 116.2 billion
yen, an increase by 16.8 billion yen YoY.
Next, please turn to page 9.

78This page shows an overview of each segment.
The horizontal bar graphs in the upper half show each segment profit for FYE 3/2022
and FYE 3/2023. The table in the lower half shows the status of segment profits andassets for each segment.
In the subsequent pages, I will provide some explanations for each segment.
Please turn to page 10.

9In Customer Solutions segment, the segment profit increased by 5.4 billion yen YoY to38.1 billion yen. This was mainly thanks to the posting of large gains on sales related toreal estate leasing and the absence of large credit costs recorded in FYE 3/2022.
Next, please turn to page 11.

10This is the Global Business segment.
I would like to remind everyone that the details on this page are for the Global Businesssegment, and do not include the results of global transactions that belong to othersegments such as Aviation and Logistics.
Now, the gross profit in the “Global Business” segment increased by 8.8 billion yen YoY
to 121.1 billion yen, mainly thanks to the business growth of subsidiaries in the Americas.
On the other hand, the segment profit decreased by 11.8 billion yen YoY to 29.0 billion
yen due to the absence of large gains on sales of strategic shareholdings recorded inFYE 3/2022 and other factors, despite the factors contributing to profit increase, such as
an increase in gross profit, a decrease in credit costs, and posting of gains on therevaluation of securities at a European subsidiary.
Now, please turn to page 12.

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In Environment, Energy & Infrastructure segment, the gross profit decreased by
1.1 billion yen YoY to 16.4 billion yen due to a decrease in domestic electricity sales
revenue from wind power generation business as a result of wind conditions, and otherfactors.
On the other hand, the segment profit increased by 9.3 billion yen YoY to 11.6 billion yen
thanks to an increase in profits from equity method investments associated with starting
commercial operation of a wind power generation project in Europe, gains on sales ofequity interests in certain infrastructure projects, a decrease in credit costs, and otherfactors.
Let’s turn to page 13.

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In Aviation segment, the gross profit decreased by 1.4 billion yen YoY to 33.6 billion yen
mainly due to the absence of gains on sales of certain receivables from bankrupt debtors
in FYE 3/2022 and an increase in impairment losses, despite an increase in leasing
revenues and gains of sales of the owned assets associated with the market recovery.
Conversely, the segment profit increased by 500 million yen YoY to 6.2 billion yen mainly
thanks to a large reduction in credit costs, despite an increase in exchange revaluation
losses on foreign currency borrowings in JOLCO.
As of the end of March, 2023, there were no off-leasing aircraft in our aircraft leasingbusiness.
Please turn to page 14.

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In Logistics segment, the segment profit increased by 14.5 billion yen YoY to 15.3 billion
yen driven by the marine container leasing business, with thanks to the full-year profit
contribution from CAI, and the steady performance of BIL.
These two companies merged on January 1, 2023. As a result, they together had theglobal third largest share of the marine container leasing market in terms of costequivalent unit (“CEU”) as of the end of December 2022. Having become a world-leading
marine container leasing company, we expect it to increase its global competitiveness,work toward the growth opportunities, and strengthen and expand it as a driver of thegrowth for MHC.
Let’s look at page 15.

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In Real Estate segment, the gross profit decreased by 1.6 billion yen to 24.9 billion yen
mainly due to the posting of a market valuation loss on a project in the U.S.A.
Despite credit costs posted for another project in the U.S.A. on top of the decline in grossprofit, the segment profit increased by 200 million yen YoY to 12.6 billion yen, mainly
thanks to a decrease in tax expenses associated with the share transfer of Diamond
Asset Finance.
Please turn to page 16.

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In Mobility segment, the segment profit increased by 600 million yen YoY to 3.7 billion
yen mainly thanks to an increase in gains on sales of vehicles for which leasing term
matured, against a backdrop of the strong used car market in Japan.
On April 1 of this year, the merger between our equity-method affiliate Mitsubishi Auto
Leasing and our consolidated subsidiary Mitsubishi HC Capital Auto Lease (“CA”) wascompleted, with Mitsubishi Auto Leasing, which is an equity-method affiliate, as thesurviving company.
In March 2023, the status of CA was changed from a consolidated subsidiary to an
equity-method affiliate as a part of the merger proceedings. The effect of this merger on
the consolidated financials for FYE 3/2023 was that the full-year profits and the newtransactions volume of CA were fully incorporated into our consolidated financials,
however, in terms of the segment assets (B/S), only our investments in CA as of the endof March 2023 were posted as equity- method investments. For this reason, the segment
assets were down by 88.0 billion yen compared to FYE 3/2022, finishing at 41.4 billion
yen.
Now, I would like to talk about our financial forecasts for FYE 3/2024.
Let’s move on to page 18.

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In FYE 3/2024, the first fiscal year of the 2025 MTMP, we are expecting steady businessgrowth, such as the growth in the aviation business against the backdrop of the recoveryof passenger demand.
On the other hand, we do anticipate costs for restructuring and redefining existing
businesses toward achieving “Our 10-year Vision.”
In terms of these forecasting, the net income for FYE 3/2024 is planned to be 120.0
billion yen, an increase by 3.7 billion yen YoY.

And we expect that ROA in FYE 3/2024 will remain flat YoY at 1.1%, and ROE will be7.8%, down 0.4 pt YoY due to the impact of exchange rates etc.
These calculations are based on the assumed exchange rates of 130 yen to the dollar
and 160 yen to the pound.
Let’s look at page 19.

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Here you can see a transition of some major figures. Our financial forecast for
FYE 3/2024 is set for the net income of 120.0 billion yen. This figure marks threeconsecutive years of increased net income, and represents a new historical high for thenet income.
Please turn to page 20.

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The forecast net income for this fiscal year of 120.0 billion yen is presented here with awaterfall chart, comparing positive factors and negative factors with the previous fiscalyear.
In item (1), Business Growth, we expect a 28.0 billion yen increase YoY thanks to thegrowth in the Aviation segment against the backdrop of the recovery of passenger
demand and other factors.
Next, looking at the blue parts of the graph, we can see negative factors on income.

In item (3), Operating Expenses, we expect an increase by approximately 11.0 billion
yen YoY due to the investments aiming to achieve “Our 10-year Vision”, and theexpenses associated with the promotion of business activities.
In item (4), Extraordinary Income and Loss, despite the one-time gains associated withour 100% acquisition of CenterPoint Development in the Real Estate segment, weanticipate a decrease of approximately 2.0 billion yen YoY due to the expenses
associated with restructuring and redefining existing businesses, and other factors.
In item (5), Others, we expect the absence of a reduction effect in tax expenses posted
in FYE 3/2023.
Based on these factors, we have set our forecast net income for FYE 3/2024 at 120.0
billion yen, an increase by 3.7 billion yen YoY.
Finally, I would like to talk about our dividend forecast for FYE 3/2024.
Let’s move on to page 21.

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Pursuing our basic policy of returning profits to shareholders by distributing dividends,
we are planning a payout ratio of more than 40% during the 2025 MTMP. Accordingly,
the annual dividend per share for FYE 3/2024 is forecast to be 37 yen, up 4 yen YoY.
Assuming net income of 120.0 billion yen, the payout ratio is estimated to be 44.3%.
Thank you for your time.

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