Consolidated Financial Highlights for the First Quarter Ended June 30, 2023
[Based on J-GAAP]
August 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:
Taiju Hisai, Representative Director, President & CEO
For Inquiry:
Haruhiko Sato, Director, Managing Executive Officer TEL: +81-3-6865-3002
Scheduled Date of Submission of Financial Reports:
August 10, 2023
Scheduled Commencement of Dividend Payment:－
Supplemental Material for Financial Results:
Available
Holding of Financial Results Meeting:No(Amounts of less than one million yen are rounded down)
1. Consolidated Results for the First Quarter Ended June 30, 2023 (April 1, 2023 – June 30, 2023)(1) Consolidated Operating Results (Cumulative)(% represents the change from the same period in the previous fiscal year)

Revenues

For the three months ended

Operating income

Net income attributableto owners of the parent

Recurring income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

476,814460,347

3.6
12.9

36,28940,471(10.3)
95.2

37,754
41,931(10.0)
103.3

35,10832,046

9.6(3.4)

June 30, 2023
June 30, 2022
(Note) Comprehensive income:For the three months ended June 30, 2023: ¥96,193 million (17.7%)
For the three months ended June 30, 2022: ¥116,914 million 145.4%

Dilutedearnings per share

Earnings per share

For the three months ended

(Yen)

(Yen)

June 30, 2023

24.44

24.37

June 30, 2022

22.32

22.26

(2) Consolidated Financial Position
Total assets

As ofJune 30, 2023
March 31, 2023
(Reference) Shareholders’ equity:

Total equity

Equity ratio(Millions of yen)

(Millions of yen)%

11,146,942
10,726,196

1,615,972
1,551,029

14.3
14.3

As of June 30, 2023:¥1,590,569 million
As of March 31, 2023: ¥1,528,773 million

2. Dividends
Dividends per share
1st Quarter end

For the fiscal year

2nd Quarter end

3rd Quarter end

Fiscal year - end

Annual

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

ended March 31, 2023

－

15.00

－

18.00

33.00

ending March 31, 2024

－
18.00

－

19.00

37.00

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

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

Earnings per share(Millions of yen)

%

(Yen)

120,000

3.2

83.55

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

1

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

Yes

Excluded: Japan Infrastructure Initiative Company Limited(2) Application of accounting treatments specific to the preparation of the quarterly
consolidated financial statements:
Yes(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to the
Quarterly Consolidated Financial Statements (Application of accounting treatments specific to the preparationof the quarterly consolidated financial statements)” on page 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 June 30, 2023

1,466,912,244 shares

As of March 31, 2023

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

As of June 30, 2023

30,645,630 shares

As of March 31, 2023

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

For the three months
ended June 30, 2023

1,436,244,628 shares

For the three months
ended June 30, 2022

1,435,962,386 shares* This “Consolidated Financial Highlights” is outside the scope of review procedure by certified public accountants or an
audit firm.
* Explanation regarding the appropriate use of the forecasts, etc.
(Remarks on forward-looking statements)
The forward-looking statements in this report, including financial forecast, have been prepared by using information
available to Mitsubishi HC Capital Inc. (“Company” or “we”) on the date of release and the certain assumptions deemed
reasonable by the Company, and are not intended to assure that the Company will achieve such results. Actual earnings
may differ significantly from the forecasts for various reasons.
* This “Consolidated Financial Highlights” is made in Japanese and translated into English. The Japanese text is the original
and the English text is for reference purposes. If there is any conflict or inconsistency between these two texts, theJapanese text shall prevail.

2

Contents
1. Qualitative Information concerning Financial Results for the First Quarter Ended June 30, 2023

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 ofComprehensive Income

11

Quarterly Consolidated Statements of Income
For the Three Months ended June 30, 2023 and 2022

11

Quarterly Consolidated Statements of Comprehensive Income
For the Three Months ended June 30, 2023 and 2022
(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)

1531. Qualitative Information concerning Financial Results for the First Quarter Ended June 30, 2023
(1) Summary of Operating Results1) Overview of Financial Results, etc.
Gross profit increased by ¥1.3 billion, or 1.5% year on year, to ¥94.6 billion.
・Gross profit increased by ¥1.3 billion, or 1.5% year on year, to ¥94.6 billion mainly thanks to the businessgrowth in the Aviation segment and the positive effects in the Global Business segment by adjusting fiscal
period associated with the reorganization of subsidiaries in the Americas, while lowered profitability causedby rising cost of funds in subsidiaries mainly in Europe and the Americas in the Global Business segment
and the negative effects by the deconsolidation of Diamond Asset Finance Company Limited and Mitsubishi
HC Capital Auto Lease Corporation in the fiscal year ended March 31, 2023.
Recurring income decreased by ¥4.1 billion, or 10.0% year on year, to ¥37.7 billion.
・Recurring income decreased by ¥4.1 billion, or 10.0% year on year, to ¥37.7 billion mainly due to an increasein expenses associated with the promotion of business activities in subsidiaries mainly in Europe and theAmericas and an increase in credit costs in the Americas in line with the worsening market condition in the
Global Business segment.
Net income attributable to owners of the parent increased by ¥3.0 billion, or 9.6% year on year, to ¥35.1 billion.
・Net income attributable to owners of the parent increased by ¥3.0 billion, or 9.6% year on year, to ¥35.1
billion mainly thanks to posting of extraordinary income in the Real Estate segment as a result of making
CenterPoint Development Inc. our wholly-owned subsidiary.
・The progress of net income for the three months ended June 30, 2023 against the financial forecast for the
fiscal year ending March 31, 2024 (net income attributable to owners of the parent of ¥120.0 billion) was
29.3%.
(Billions of yen)
For the three months
ended June 30, 2022

For the three months
ended June 30, 2023

Change (%)

Revenues

460.3

476.8

3.6

Gross profit

93.2

94.6

1.5

Operating income

40.4

36.2

(10.3)

Recurring income

41.9

37.7

(10.0)

Quarterly net income
attributable to ownersof the parent

32.0

35.1

9.6

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 frontiersof the future). We set the financial targets at FY2025 (the fiscal year ending March 31, 2026), the final fiscal yearof the 2025 MTMP, as net income attributable to owners of the parent of ¥160.0 billion, ROA of approximately
1.5%, ROE of approximately 10%, and dividend payout ratio during the 2025 MTMP of 40% or higher. Net
income attributable to owners of the parent is used in the calculations of ROA and ROE.

4

Please refer to “Medium-term Management Plan for FY2023 - FY2025 (“2025 MTMP”)” posted on the
Company’s website for more details of the 2025 MTMP.
(Medium-term Management Plan Page URL on our website)
https://www.mitsubishi-hc-capital.com/english/investors/managementplan/index.html

Major business topics
Apr. 2023:

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

May 2023:

 Announced the participation in the “GX League” established by Japan’s Ministry of Economy,
Trade and Industry aiming at transforming economic and social systems towards the realizationof carbon neutrality by 2050.
 HSE Ltd., engaged in renewable energy power generation business, launched the renewableenergy aggregation business whereby the company predicts renewable energy power
generation and prepares power generation plans as well as supply electricity and non-fossil
value.

June 2023:  Announced the establishment of “Innovation Investment Fund” with a total of ¥10 billion of funds
available for investment in startups with an aim to promote creation of new services anddevelopment of new businesses (started operation in April 2023).
July 2023:

 Together with Hitachi, Ltd. and Tamakawa Village in Fukushima Prefecture, we launched thesecond phase of the "Empty-handed cashless verification project" using Hitachi's uniqueintegrated biometric certification infrastructure service.
 Announced the merger of Mitsubishi HC Capital Property Inc. and Mitsubishi HC Capital
Community Corporation, engaged mainly in real estate rental business (the merger is scheduled
in October 2023).
 Announced the commencement of offering self-consignment service for solar power generation
to MinebeaMitsumi Inc. and MITSUMI ELECTRIC CO., LTD. through Godo Kaisha RenetS,
which was jointly established with Chuo Electric Power Co., Ltd.

Aug. 2023:  Announced to establish a hub in Silicon Valley in the U.S.A. to strengthen the businessintelligence function as part of the innovation initiatives.

3) Operating results by reportable segments
Operating results by reportable segments were as follows.
Following the organizational changes effective April 1, 2023, the name of the reportable segment“Environment, Energy & Infrastructure” was changed to “Environment & Energy” from April 1, 2023.
(For details of new reportable segments, please refer to “2. Quarterly Consolidated Financial Statements andMajor Notes, (3) Notes to the Quarterly Consolidated Financial Statements (Segment information)” on page 13.)
(Customer Solutions)
Segment profit decreased by ¥3.0 billion, or 27.4% year on year, to ¥8.2 billion mainly due to an absence oflarge gains on sales related to real estate leasing and insurance claim income for a certain deal, both recordedin the three months ended June 30, 2022.

5

(Global Business)
Segment profit decreased by ¥6.2 billion, or 60.6% year on year, to ¥4.0 billion mainly due to an increase in
expenses associated with the promotion of business activities in subsidiaries mainly in Europe and the Americas,
an increase in credit costs in the Americas in line with the worsening market condition, and lowered profitability
caused by rising cost of funds, despite the positive effects by adjusting fiscal period associated with thereorganization of subsidiaries in the Americas.
Effective April 1, 2023, we executed the business integration of three subsidiaries in the Americas having a
different fiscal year-end. While the surviving company’s fiscal year-end is March 31, the two merged companies’
fiscal year-end was December 31. Accordingly, results of the two merged companies for the period from January
1, 2023 to March 31, 2023 are also included in the consolidation for the three months ended June 30, 2023,
resulting in a year-on-year increase in profit.
(Environment & Energy)
Segment profit increased by ¥0.7 billion, or 41.2% year on year, to ¥2.6 billion mainly thanks to a decreasein tax expenses as a result of recording deferred tax assets in relation to the absorption-type merger of Japan
Infrastructure Initiative Company Limited, despite a decrease in gains on sales and the profit from equity-method
investments.
(Aviation)
Segment profit increased by ¥3.2 billion year on year to ¥2.3 billion mainly thanks to an increase in leasing
revenue and gains on sales, and a decrease in exchange revaluation losses related to foreign currencydenominated borrowings in aircraft leasing transactions that our head office is engaged in.
(Logistics)
Segment profit increased by ¥0.7 billion, or 17.2% year on year, to ¥5.4 billion mainly thanks to an increasein gains on sales.
(Real Estate)
Segment profit increased by ¥9.0 billion, or 340.1% year on year, to ¥11.7 billion mainly thanks to gains on
step acquisitions recorded in relation to making CenterPoint Development Inc. our wholly-owned subsidiary, an
increase in gains on sales and an absence of credit costs recorded in the three months ended June 30, 2022.
(Mobility)
Segment profit decreased by ¥0.4 billion, or 33.6% year on year, to ¥0.8 billion mainly due to the negative
effects by the deconsolidation of Mitsubishi HC Capital Auto Lease Corporation.

6

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

Reportable segments

For the three months
Ended June 30, 2022

For the three months
Ended June 30, 2023

Change (%)

Customer Solutions

11.2

8.2

(27.4)

Global Business

10.2

4.0

(60.6)

Environment & Energy

1.9

2.6

41.2

Aviation

(0.9)

2.3

－

Logistics

4.6

5.4

17.2

Real Estate

2.6

11.7

340.1

Mobility

1.3

0.8(33.6)

Adjustments

0.8

(0.2)

－

Total

32.0

35.1

9.6

(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 equal to net income attributable to owners of the parent on the quarterly consolidated
statements of income.

Segment assets by reportable segments

Reportable segments(Billions of yen)
Change (%)

As of March 31, 2023

As of June 30, 2023

Customer Solutions

3,227.7

3,205.8(0.7)

Global Business

2,644.2

2,922.0

10.5

Environment & Energy

433.2

440.9

1.8

Aviation

1,640.2

1,654.4

0.9

Logistics

1,092.9

1,090.2(0.2)

Real Estate

447.2

470.4

5.2

Mobility

41.4

40.9

(1.0)

Adjustments

105.8

65.3

(38.3)

Total

9,632.9

9,890.2

2.7(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.

7(2) Summary of Consolidated Financial Position
Compared to the figures as of March 31, 2023, total assets as of June 30, 2023 increased by ¥420.7 billion
to ¥11,146.9 billion, total equity increased by ¥64.9 billion to ¥1,615.9 billion, and interest-bearing debt
(excluding lease obligations) increased by ¥353.5 billion to ¥8,589.6 billion.

(3) Explanation on Future Forecast Information including Consolidated Financial Forecast
The progress made toward the consolidated financial forecast announced on May 15, 2023 (net income
attributable to owners of the parent of ¥120.0 billion) during the three months ended June 30, 2023 was 29.3%,
and accordingly, there has been no change in the consolidated financial forecast for the year ending March
31, 2024.

8

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

9(Millions of yen)
For the three months ended
June 30, 2023
(As of June 30, 2023)

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

569,664
229,2613,299,931
1,794,477
210,671
72,045
7,390
51,791
329,462(32,930)
6,531,765

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

3,444,604
67,7043,512,309
218,848
18,266
3,749,424

23,197

19,93091,497133,034
224,532
247,730

104,146
132,303
236,449
256,379

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

404,170
107,385
160,729(66,893)605,391
4,611,195

4,603
4,603
10,726,196

3,981
3,981
11,146,942

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Commercial papers
Current maturities of loans from thesecuritizations of the minimum future rentals
on lease contracts
Income taxes payable
Deferred profit on installment sales
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Loans from the securitizations of the minimum
future rentals on lease contracts, less current
maturities
Provision for retirement benefits for directors(and other officers)
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 three months ended
June 30, 2023
(As of June 30, 2023)

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

135,373
533,470
644,703
950,930
736,878

246,640

244,308

9,381
9,648
15,89011,511
9,365
6,864

2,255

1,252

272,437
3,512,353

270,994
3,545,653

1,582,848
3,253,535

1,636,883
3,508,358

357,662

334,107

110

120

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

6,484
12,461
486,900
5,985,316
9,530,969

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

33,196547,309712,283(19,113)
1,273,676

14,817

17,65753,051
186,545
1,985

59,830237,606
1,798

256,400

316,892

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

2,103
23,3001,615,972
11,146,942

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the three months ended June 30, 2023 and 2022)

Revenues
Cost of revenues
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Other(Millions of yen)
For the three months ended For the three months ended
June 30, 2022
June 30, 2023
(April 1, 2022 - June 30, 2022) (April 1, 2023 - June 30, 2023)
460,347
476,814367,078
382,175
93,26994,63952,79758,34940,47136,289Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Recurring income
Extraordinary income
Gain on sale of investment securities
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on sale of shares of subsidiaries andassociates
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

11

138
398

1,159
751

2,774

2,129

3,383
6,694

1,985
6,027

1,450
3,211
573
5,235
41,931

2,808
977
775
4,561
37,754

300
－
300

1,378
4,822
6,201

－

138

－
42,231
9,813
32,418371
32,046

138
43,817
8,429
35,388279
35,108(Quarterly Consolidated Statements of Comprehensive Income)(For the three months ended June 30, 2023 and 2022)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests(Millions of yen)
For the three months ended For the three months ended
June 30, 2022
June 30, 2023
(April 1, 2022 - June 30, 2022) (April 1, 2023 - June 30, 2023)
32,41835,388

12

1,168

2,841

15,456
63,465
1,331

4,301
50,527
(162)

3,073

3,296

84,495
116,91460,80596,193

115,997

95,600916

593

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

Customer Solutions

Global Business

Environment & Energy

Main business description
Finance solution business for companies and government agencies,
energy-saving solution business,sales finance business provided through collaboration with vendors,
real estate leasing business, and financial service business
Finance solution business, sales finance business provided through collaboration withvendors in Europe, the Americas, China, and ASEAN region
Renewable energy business, and environment related finance solution business

Aviation

Aircraft leasing business, and aircraft engine leasing business

Logistics

Marine container leasing business, and railway freight car leasing business

Real Estate

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

Mobility

Auto leasing business and supplementary services

The segment information for the three months ended June 30, 2022 is presented under the new segment
name.

13

2. Information on profit or losses by reportable segments
For the three months ended June 30, 2022 (April 1, 2022 to June 30, 2022)

Reportable segments

Customer
Solutions

Segment profit(losses)

11,294GlobalEnvironment &Business
Energy10,265

1,906

Aviation

Logistics

Real Estate

Mobility

(900)

4,629

2,665

1,332

(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note) 1
statements
of income(Note) 2
851

32,046(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. It also includes profit adjustments of¥476 million related to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit (losses) is equal to net income attributable to owners of the parent on the quarterly consolidated
statements of income.

For the three months ended June 30, 2023 (April 1, 2023 to June 30, 2023)
Reportable segments

Customer
Solutions

Segment profit

8,204

GlobalEnvironment &Business
Energy

4,041

2,693

Aviation

Logistics

Real Estate

Mobility

2,392

5,428

11,730884(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note) 1
statements
of income(Note) 2(266)

35,108(Note)1. Adjustments of segment profit consist mostly of adjustments of company-wide expenses included in selling, general andadministrative expenses not allocated to any reportable segments. It also includes profit adjustments of ¥443 million
related to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit is equal to net income attributable to owners of the parent on the quarterly consolidated statements ofincome.

3. Information on impairment losses on non-current assets or goodwill by reportable segment
For the three months ended June 30, 2022 (April 1, 2022 to June 30, 2022)(Significant changes in goodwill)
Not applicable
For the three months ended June 30, 2023 (April 1, 2023 to June 30, 2023)(Significant changes in goodwill)
Real Estate segment recorded goodwill of ¥13,207 million associated with the acquisition of all sharesof CenterPoint Development Inc. The amount is a provisional amount based on the information available
at this point as the allocation of the acquisition cost has not been completed.

14

(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 three months ended June 30, 2023 by the reasonably estimated effective tax
rate (after tax effect accounting) applicable to income before income taxes for the fiscal year ending March 31,2024.
(Changes in accounting policies)(Application of Accounting Standards Update (ASU) 2016-13 “Financial Instruments – Credit Losses”)
Certain overseas consolidated subsidiaries applied ASU 2016-13 “Financial Instruments – Credit Losses”
on April 1, 2023. As a result, allowance for doubtful accounts is recorded for financial assets in these overseas
consolidated subsidiaries by estimating the expected credit losses over the remaining life of the financial assets
at initial recognition.
As a result of this change, retained earnings in the quarterly consolidated financial statements as of April 1,
2023 decreased by ¥7,957 million.

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