This is Takahiro Yanai, President and CEO of Mitsubishi HC Capital.
Thank you for taking time out of your busy schedules to attend today’s financial results
briefing.
Due to the COVID-19 pandemic, we decided to hold this briefing via Webcast. Thankyou for your understanding and cooperation.
On April 1, 2021, Mitsubishi UFJ Lease & Finance and Hitachi Capital took a new, firststep forward as the merged entity named “Mitsubishi HC Capital Inc.”
Although we had had only 6 months for preparation since the business integration
announcement on September 24, 2020, we vigorously advanced integration procedures,
centering on administrative departments, leading to a favorable start. In January 2021,
clearance is obtained under anti-trust laws in each country, and started discussions
among sales divisions.
Since April, we are working towards certain implementation of PMI (Post Merger
Integration) procedures, by establishing a department which assume company-wide PMI
management, and multiple working groups, that are now discussing for early synergy
creation.
Today, first of all, Director, Senior Managing Executive Officer and Head of theTreasury & Accounting Division Inoue will explain the results for FY3/2021 of the former
companies, along with the material FY3/2022 Results.
Then I will take my turn to explain the new company, including our management policy,
centering on “forecast for FY3/2022”.
After that, we will accept your questions and comments.
Director, Senior Managing Executive Officer Inoue, the floor is yours.

1This is Director Inoue. I extend my gratitude to all of you for attending our financial
results briefing today.
As President and CEO Yanai stated in the opening greeting, Mitsubishi HC Capital
started on April 2021 through the business integration of the former Mitsubishi UFJ
Lease & Finance and Hitachi Capital (hereinafter, “MUL” and “HC”).
The legal surviving company is MUL, but I would also like to explain HC's financial
results for FY3/2021. As HC is the merged company, it will undergo a voluntary audit. I
will let you know that we do not plan to prepare HC’s annual securities report based on
the Financial Instruments and Exchange Law because it is not necessary under thecurrent regulations or rules.
In line with the material FY3/2021 Results, I would like to explain the financial overview
and actual results for FY3/2021.
First of all, we describe overall picture of the results as highlights.
Please look at page 3.

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For FY3/2021, results at both MUL and HC exceeded forecasts that had beenannounced.
Net Income of MUL declined 21.8% YOY to 55.3 billion yen mainly due to a decline inearnings and an increase in credit costs in the aviation business, although real estaterelated and other businesses performed steadily. However, as credit costs fell below theestimate, the progress rate versus the forecasted net income of 50.0 billion yen
announced last November was 110.7%.
Profit Before Tax of HC was up 0.1% YOY at 42.5 billion yen thanks to the steady
performance of the environment and energy business in Japan, although the earnings in
the global business declined due to the impact of the COVID-19 pandemic and otherfactors. The progress rate versus the forecasted profit before tax of 38.5 billion yen
announced in May of last year was 110.6%.

Although the business environment was severe due to the COVID-19 pandemic, bothcompanies have been steadily implementing various initiatives outlined in their MediumTerm Management Plans.
In order to get a handle on the image of the size of the merged company, the column
marked “g” at the far right and top of the table on page 3 shows the sum of the major
figures for FY3/2021 as reference. The Gross Profit is 296.6 billion yen, Net Income is87.3 billion yen, and total assets is 9,820.8 billion yen.
However, as noted below the table, please understand that MUL's results are based on
J-GAAP and HC's results are on IFRS, and therefore simple sum of figures under
different accounting standards are shown. Mitsubishi HC Capital has adopted J-GAAP
as its accounting standards.
Please turn to page 4.

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I would like to explain MUL's results. At the top of the table, the left-most column “a”
shows figures for FY3/2020, and the orange-shaded column "b" on the right side shows
figures for FY3/2021, announced today. YOY change amounts and rates, and exchange
rates effects are shown in column from “c” to “e”.
First, Gross Profit in row 2 declined 11.8% YOY, or by 21.3 billion yen, to 160.5 billion
yen as a result of a decline in aviation-related earnings due to COVID-19 pandemic,
while real estate-related and other businesses performed steadily.
In row 4, you can see that Recurring Income fell 31.1% to 65.0 billion yen, down 29.3
billion yen YOY.
Net Income in row 5 decreased 21.8%, or 15.4 billion yen YOY to 55.3 billion yen. The
result exceeded the forecasted net income of 50.0 billion yen announced in November
last year, and the achievement rate was 110.7%.
New Transactions Volume in row 6 was 1,003.2 billion, down 535.4 billion or 34.8%
YOY. There was a decrease in aircraft lease transactions in the aviation business as well
as a reactionary fall in large projects, which were posted in the previous year in thecustomer business and real estate divisions.
Operating Assets in row 9 was 5,064.7 billion yen, down 183.5 billion yen or 3.5%
YOY, because the assets decreased by 109.6 billion yen due to a 6.06 yen rise in USD
exchange rate and a decline in new transactions volume.
Next, please look at row 7, Dividend per Share.
We increased the annual dividend per share by 0.50 yen YOY to 25.50 yen. President
and CEO Yanai will explain the dividend later in conjunction with earnings forecasts.
Then please turn to page 5.

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We explain the factors behind the Increase and Decrease in Net Income Attributableto Owners of the Parent using the waterfall chart.
The left-most gray bar shows the net income of 70.7 billion yen in FY3/2020 and theright-most red bar shows the net income of 55.3 billion yen in FY3/2021, and the bars
between those two indicates the factors behind the increase and decrease.
Item (1) Gross Profit, blue bar on the left decreased by 21.3 billion yen YOY. It ismainly because aviation-related earnings declined affected by the COVID-19 pandemic,
while real estate-related sales increased.
Item (2) Operating Expenses increased by 1.0 billion yen YOY. This is because 5.0
billion of expenses related to the business integration with HC were incurred, whilebusiness expenses declined.

Item (3) Credit Cost increased by 7.2 billion yen YOY. This is primarily due to theadditional credit costs on some customers of aviation-related business and an increasein general credit costs on US vendor finance company ENGS Holdings.
Item (4) Extraordinary Income increased by 13.4 billion yen YOY due to the sale ofshares held for strategic purposes, compensation income posted on the contribution ofasset holdings in real estate-related business to redevelopment projects, and others.
Item (5) Tax Expenses decreased by 0.4 billion yen along with a decline in profit before
tax, and others.
Summing up the items (1) to (5) above, net income, the right-most bar graph, declined
by 15.4 billion yen YOY to 55.3 billion yen.
Please turn to page 6.

5Now, I would like to explain FY3/2021 Divisional Earnings / Assets.

Divisional Assets is calculated by operating assets plus equity method investments as
described in footnote 1 at the bottom left of the page.
On the left side of the page, the waterfall chart shows the increase or decrease of net
income by division.
The net income in the Customer Business increased YOY partly due to the sale ofshares held for strategic purposes, although credit costs increased at ENGS, a US
vendor finance company, in line with the current environment.
The net income in the Real Estate business also increased YOY as a result of
promoting asset turnover businesses, such as the sale of logistics and residential assets
as well as earnings posted on the contribution of asset holdings to redevelopment
projects as I explained before.
However, overall net income declined due to a decrease in net income in the Aviation
business following the COVID-19 pandemic and the increase in expenses related to thebusiness integration with HC and funding-related costs, which are included in the amountof Adjustment incurred by the head office.
The table on the right shows the main factors behind the changes in net income foreach division and the departments and subsidiaries that comprise the business division.
Please refer to the list of major MUL group companies on page 40 for subsidiaries
described by abbreviations.
Please also refer to pages 23 to 34, which summarize the status and reference
information for each division.
Next, I would like to explain the results for HC. Please turn to page 7.

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The left-most column with “(a)” at the top of the table shows figures for FY3/2020.
Figures in the blue-shaded column with “(b)” on the right are for FY3/2021 weannounced today. The columns with “(c)” and “(d)” on the right show YOY changeamounts and rates.
In addition, the columns with “(e)”, “(f)”, and “(g)” show the impact of the COVID-19
pandemic, YOY change rates excluding the impact of the COVID-19 pandemic, and theprogress rate versus the initial forecast.
First, Gross Profit in row 3 was 136.1 billion yen with a YOY decrease of 0.2 billion yen
or 0.2%, almost unchanged from the previous year, despite a decline in Europe due tothe impact of the COVID-19 pandemic. This was because of the steady performance in
key businesses such as the environment & energy business in Japan.
Profit Before Tax in row 5 was flat at 42.5 billion yen from the previous year becauseof the decline in credit costs, increase in profits from equity-method investments, andothers, while SG&A expenses increased partly due to expenses related to the businessintegration with MUL.
Despite the extremely challenging business environment due to the factors including
the COVID-19 pandemic, HC’s results exceeded the initial forecast of 38.5 billion yen(progress rate of 110.6%), thanks to the steady performance in key businesses such as
the environment & energy business.
Net Income in row 6 increased by 1.3 billion yen or 4.3% YOY.
Volume of Business in row 7 decreased by 397.8 billion yen or 18.2% to 1,788.6
billion yen. This was primarily because the volume declined mainly in Europe affected by
the impact of the COVID-19 pandemic and other factors, and some factoring and othertransactions in Japan business were suspended from FY3/2020.

Operating Assets in row 9 increased by 62.0 billion yen or 1.9% YOY to 3,247.3 billion
yen, despite a decrease in Japan business, due to the impact of the depreciation of theyen mainly in Europe and the Americas. The impact of the depreciation of the yen on theincrease in operating assets is 143.2 billion yen.
Please turn to page 8.

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The waterfall chart here explains the factors behind the Increase and Decrease in
Profit Before Tax.
I would like to explain the profit before tax today from the perspective of continuity as
HC had previously explained results focusing on profit before tax.
The left-most gray bar shows the profit before tax in FY3/2020, 42.5 billion yen.
The right-hand red bar shows the profit in FY3/2021, 42.5 billion yen. The bars between
those two indicates the factors behind the increase and decrease.
Item (1) Business Expansion, etc. in orange increased by 11.3 billion yen YOY. Thiswas mainly thanks to the steady performance in key businesses such as theenvironment & energy business and mobility business in Japan.
Item (2) Preparation Cost For Business Integration increased by 3.0 billion yen YOY.
This was due to financial and legal due diligence costs and others related to thebusiness integration with MUL of approximately 3.0 billion yen.
Item (3) COVID-19 Impact, which we have explained since the start of FY3/2021,
resulted in a negative impact of 8.2 billion yen. This was mainly because, in the global
business, volume of business declined mainly in Europe and credit costs increased dueto the response to moratoriums in each region.
Summing up the items (1) to (3) above, profit before tax in FY3/2021, the right-most bar,was 42.5 billion yen, unchanged from the previous year.
Please look at page 9.

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I would like to explain Summary of Japan Business / Global Business.

In the Japan Business, gross profit increased by 0.1 billion yen or 0.2% YOY, to 62.5
billion yen. This was mainly thanks to an increase in the earnings from electricity sales inenvironment & energy business including wind power and solar power generation, which
are key businesses, and the steady performance in the mobility business, despite theimpact of the COVID-19 pandemic.
Profit before tax increased 5.0 billion yen or 19.0% YOY, to 31.6 billion yen thanks to anincrease in gross profit, a decrease in credit costs, etc.
As a result, ROA in the Japan Business increased by 0.3% from the end of theprevious year to 1.9%, thereby increasing asset efficiency.
In the Global Business, although profitability improved in the Americas, gross profit of
the global business as a whole remained unchanged from the previous year, down 0.1%
to 72.8 billion yen, due to the impact of the COVID-19 pandemic in Europe and ASEAN,
etc.
Profit before tax was 21.6 billion yen, with a YOY decrease of 2.7 billion yen or 11.4%
because credit costs increased in the response to moratoriums in each region, etc.
As a result, ROA in the Global Business declined 0.1% YOY to 1.4%. However, asset
efficiency has been maintained without significant deterioration from the level at the endof the previous year, even under the impact of the COVID-19 pandemic.
Please refer to pages 35 to 39 for the status and reference information about the Japanbusiness and global business.
That is all for my (Director Inoue) presentation.

9I (President and CEO Yanai) will explain Forecast for FY3/2022, which starts frompage 10.
First, please look at page 11. I will explain the mission and vision of Mitsubishi HC
Capital.

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Upon the launch of Mitsubishi HC Capital, we established a mission and vision as
described. We have repeatedly made discussions about such mission and vision in the
Integration Preparatory Committee and other meetings, based on the corporate vision,
basic strategy, and goal of the new integrated company, which we presented at the timeof announcing the business integration on September 24 last year.
Our mission clearly and simply presents “goal” from a long-term perspective.
MUL before the merger had worked to offer advanced asset value by utilizing ourcustomer and financial bases, based on asset business insight, with the aim to become
an “asset-business platform company”.
Meanwhile, HC before the merger had worked to create and offer value to eachstakeholder, by steadily meeting needs of customers and local communities as a “social
values creating company”.
In line with these intention and aims of the two companies, Mitsubishi HC Capital’s
mission represents “long-term goal”, which is to “create social value” and contribute tosocial development, people’s bountiful life, and sustainable and prosperous future by
maximizing the potential of various tangible and intangible assets.
Our vision is what we should aim for and address on a group-wide basis, in order tofulfill the mission.
In other words, our mission shows “what kind of company we want to be”, and our
vision shows “what we should do to achieve the mission”.
We added the perspectives of environment, globalization, value co-creation, and DX, in
addition to “employees’ job motivation and pride” and “complying with laws andregulations”, which were a part of the mission of the former companies, based on thethemes of “providing solutions to social issues”, “achieving sustainable growth”, and“enhancing corporate value”, which we presented at the time of announcing the businessintegration in September last year. The whole Mitsubishi HC Capital Group will address
the expansion of unique and progressive businesses with consideration for SDGs, value
co-creation with diverse stakeholders across the globe, and evolving our business modelthrough utilizing digital technology and data.
Next, I would like to explain progress of PMI. Please look at page 12.

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At the time of the announcement of the business integration in September last year, we
explained that we will pursue to create three kinds of synergy effects, which are “synergy
centering on the cost for optimization of management resources and others”, “sales
synergy”, and “investment synergy utilizing capital capabilities generated by businessintegration”.
It is essential to steadily promote PMI in order to achieve synergy creation. As I
mentioned earlier, we established a department which assumes company-wide PMI
management and integrated promotion of synergy creation, and are working on thecreation of integrated momentum, communication initiatives to promote mutual
understanding, etc.
At the top of the table, for creating synergy centering on the cost for optimization ofManagement Resources and others, we have been starting to build a framework for
optimization of management resources and integrated procurement capabilities, as wellas integrating and streamlining corporate functions.
In the middle of the table, for creating Sales synergy, we have been launching“Domestic Sales Subcommittee” and “Overseas Subcommittee” and multiple working
groups by business or region within those subcommittees since April, and specificdiscussions are being made there.
In terms of Investment synergy at the bottom, we have established a framework topromote synergy creation with well-balanced “offense” and “defense”, by the Investment
Strategy Committee which discusses strategic resource allocation and the Risk
Management Committee which manages risks in overall management. Furthermore,“Investment Council Meeting” which discusses individual investment projects, has started
to create investment synergy by discussing specifically.
While firstly focusing on getting PMI measures on track, we would like to start toformulate a medium term management plan from the latter half of this year.
Next, please turn to page 13.

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You can see our Forecast for FY3/2022.
The macro-economic environment surrounding us continues to be uncertain, with the
COVID-19 variants occurring and spreading around the world. Meanwhile, restrictions on
economic activities have gradually been lifted in some countries and regions thanks toongoing large-scale monetary easing and fiscal policies as well as the progress of
vaccination in each country. We anticipate that the global economy will recover in 2021
from the downturn in the previous year. Please refer to page 22 later for macro-economic
environment as the assumption of forecast.
Please look at the bottom of page 13. In the middle of the table, shaded in orange are
our forecasts for FY3/2022, and to the left of those are the actual results for FY3/2021.
Our Net Income estimate for FY3/2022 is 95.0 billion yen, with a YOY increase of 7.6
billion yen.
As described in the first bullet point on page 13, expenses associated with promotion ofbusiness activities, establishment of structures, and others will increase in FY3/2022.
However, we anticipate the recovery of the businesses, of which net income declined in
the previous year, decrease of aviation-related credit costs, and others.
The Net Income forecast for FY3/2022 would be around 100.0 billion yen in case of
excluding expenses related to the business integration. Although we expect that the
COVID-19 pandemic continues to affect the business environment this fiscal year, as
shown by the bar graph in the bottom of page 14, the net income forecast of around100.0 billion compares with the simple sum of the figures for the two companies for
FY3/2020, which is before the pandemic.
Please return to page 13 and refer to dividend, in row 2 of the table.
We estimate a Dividend per Share of 26.00 yen, with a 0.50 yen YOY increase. I will
explain further details of dividend later on page 16.

Please refer to ROE and OHR, in row 4 and row 5 respectively. By promoting
businesses in focus domains and replacing low-profit assets, we expect ROE in
FY3/2022 to be 8.0%, up 0.7 points YOY. As for OHR, an increase in expenses
associated with the promotion of business activities, establishment of structures, etc. are
anticipated. However, by reducing expenses through optimization of management
resources, we expect OHR to be 55.9%, unchanged from the previous year.

13For reference, the following page 14 shows Transition of Major Figures of MUL andHC, and simple sum of the figures for the two companies.
Please take a look at page 15.

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The waterfall chart explains the positive and negative factors in net income forecast of
95.0 billion yen for FY3/2022.
First, “positive factors,” colored orange in the chart.
Net income associated with item (1) Business Growth will increase by 21.1 billion yen
YOY mainly thanks to the recovery of the European business and customer business.
Item (2) Extraordinary Income will rise by 4.1 billion yen YOY because of the sale ofshares held for strategic purposes aiming to replace the portfolios.
Item (3) Credit Costs associated with the aviation business will decrease. As a result of
this, net income is expected to increase by 5.5 billion yen YOY.
Regarding item (4) Expanses Related to the Business Integration, althoughexpenses such as those associated with the change of trade name and related tosystems, etc. will occur, there will be no due diligence expenses, which were posted in
the previous year. Thus, an increase in net income by 1.9 billion yen YOY is expected.
Next, negative factors for the decrease in net income, colored blue in the chart.
Item (5) Operating Expenses is forecasted to grow by 17.9 billion yen YOY due to theincrease in expenses associated with the promotion of business activities, mainly inoverseas offices.
Item (6) Others includes the increase in tax-related expenses.
As a result, Net Income forecast for FY3/2022 is 95.0 billion yen, up 7.6 billion yen YOY.
Please look at page 16.

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I would like to explain expected Dividend for FY3/2022.

As explained, expected Dividend per Share for FY3/2022 will be 26.00 yen, up 0.50
yen YOY. Payout Ratio will be 39.3%, based on the net income forecast of 95.0 billion
yen.
MHC will return profit to shareholders by distributing dividends in principle. We set
these levels of dividend in consideration of the 22 consecutive years of dividend increase
in MUL before the merger, and the dividend policies having set payout ratio of 30% level
in MUL before the merger and around 40% in HC before the merger.
On pages 17 to 19, we summarized Business Strategies for FY3/2022 by businessdivision for your later reference. As there is little duplication in businesses between MULand HC, the new integrated company, MHC has wide-ranging business domains anddiversified portfolios. We are in an ideal mutually complementary relationship.
There are also domains which both companies have been focusing on in common.
On page 20, centering on environment & energy, you can find the initiatives of the former
companies to realize a decarbonized society and both companies have been focusing on
and leveraging their strengths.
Looking at the initiatives colored red by MUL before the merger and blue by HC before
the merger, you will find the favorable balance of projects by region and business line.
We believe that our presence in the market will grow even more than before through the
integration.
That is all for my (President and CEO Yanai) presentation. As I stated at the beginning,
we will strive to meet the expectations of our stakeholders. We sincerely ask for yourcontinued support. Thank you.

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