FY3/2022 2nd Quarter Results
Mitsubishi HC Capital Inc.

November 12 , 2021

IndexI.

FY3/2022 2nd Quarter Results

II. Segment Updates

III. PMI and Management Plan
IV. Forecast for FY3/2022

V. Appendix【Results of FY3/2021 2Q and FY3/2021 in this material】
The company (the former Mitsubishi UFJ Lease & Finance Company Limited (MUL)) executed the business integration with Hitachi Capital
Corporation (HC) and changed the trade name to Mitsubishi HC Capital Inc. (MHC) on April 1, 2021. Therefore, both results of FY3/2021
2Q and FY3/2021 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 value.

1

I. FY3/2022 2nd Quarter Results

2

Financial Highlights
Increase YOY in each profit item
 Gross profit for FY3/2022 2Q increased by 11.5 % YOY to 161.1 billion yen, and net income increasedby 63.9% YOY to 60.4 billion yen thanks to the business growth mainly in Europe and the U.S., etc.
 New assets acquired (new transactions volume) increased by 9.0% YOY to 1,147.2 billion yen.

Forecast for FY3/2022 remains unchanged considering the uncertainty in external
environment
 The progress rate against the forecast for FY3/2022 (net income: 95.0 billion yen) was 63.7%.
 Forecast for FY3/2022 remains unchanged because there is uncertainty in future external environment

and possibility of the occurrence of credit costs in the Aviation business, etc.

Smooth progress of PMI and started full-fledged examination of New Medium-termManagement Plan Thanks to lively discussions in each working group, PMI has been progressing smoothly.
 We started full-fledged examination of new medium-term management plan. We will announce the“medium- to long-term management direction” at the time of announcing FY3/2022 results (May 2022).
* Figures for the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis in a simplified manner,which are presented as reference value. Therefore, figures YOY are those compared to reference value.

3Actual Results
 The cumulative gross profit for FY3/2022 2Q increased by 11.5% YOY to 161.1 billion yen and the quarterly net income attributable toowners of the parent for FY3/2022 2Q increased by 63.9% YOY to 60.4 billion yen, thanks to the business growth mainly in Europe andthe U.S., etc.
 The progress rate against the forecast for FY3/2022 (net income: 95.0 billion yen) was 63.7%.
(a)

(b)

(c)

FY3/2021 2Q*4

(Billion Yen)

MUL

(Reference)
HC
372.4
63.7
14.5
16.7
12.3
548.4

(Reference)
Simple Sum
827.0
144.5
46.7
50.3
36.9
1,052.2

3,268.1*6

8,604.8*6

1
2
3
4
5
6

Revenues
Gross Profit
Operating Income
Recurring Income
Net Income*1
New Transactions Volume

454.6
80.8
32.1
33.6
24.5
503.7

7

Total Segment Assets*2

5,336.6*6

8ROE

6.3%*8-

ROA (Net Income Attributable to

0.8%*8-9
10

Owners of the Parent on Total Assets)

OHR*3

52.8%

65.2%

*1 Quarterly net income attributable to owners of the parent*2 “Operating assets” + “equity method investments” + “goodwill” + “investment securities, etc.”(refer to page 41 for details)*3 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*4 For MUL, figures are retroactively adjusted along with the change in the accounting
method; (refer to page 41 for details)
For HC, figures for IFRS basis converted into J-GAAP basis in a simplified manner, which
are presented as reference value*5 Effects of changes in exchange rates to be applied when incorporating results ofoverseas subsidiaries (refer to page 47 for details)*6 FY3/2021(d)(e)=(d)-(c)FY3/2022
2Q

YOY Change

833.3
161.1
58.1
59.0
60.4
1,147.2

+6.2
+16.6
+11.3
+8.7
+23.5
+95.0

8,623.9+19.1*7-

10.1%*9--

1.3%*9

-

58.3%

54.9%

-3.4P

(f)

(g)=(e)/(c)Exchange
Rates
Effects*5
+9.4
+3.4
+3.5
+1.1
+0.7
+37.7

YOY Change(%)+115.7+0.2%*7+0.8%+11.5%+24.3%+17.3%+63.9%+9.0%<ROE and ROA>
Calculated using the annualized
net income and equity or total assets
adjusted upon the integration, etc.
(refer to *8 and *9 below for details)*7 Change from FY3/2021*8 Numerator:
annualized net income by doubling the net income for FY3/2021 2Q thatwas retroactively adjusted along with the change in the accounting method
Denominator: average of FY3/2020 equity and FY3/2021 2Q equity or of FY3/2020 total
assets and FY3/2021 2Q total assets, that were retroactively adjusted alongwith the change in the accounting method*9 Numerator:
annualized net income by doubling the net income for FY3/2022 2Q
Denominator: average of FY3/2022 2Q equity and FY3/2021 equity (calculated by adding up
J-GAAP-based reference figures of the former 2 companies and making
adjustment upon the integration) or of FY3/2022 2Q total assets and FY3/2021
total assets (calculated by adding up J-GAAP-based reference figures of theformer 2 companies and making adjustment upon the integration))4

Increase/Decrease in Net Income
Attributable to Owners of the Parent
(4)
+2.5

(2)
+21.4

(Billion Yen)

Net Income
+23.5

▲2.4
(3)

(1)
+13.8

▲5.2
(5)

▲6.5
(6)

36.9

12.3*2

60.4

24.5*1

FY3/2021
2Q(Reference)

Business
Growth*3

Extraordinary
Income/Loss

MUL Result*1(1) Business Growth*3(2) Extraordinary
Income/Loss(3) Credit Costs(4) Expenses Related
to the Business
Integration(5) Operating
Expenses*4(6) Others

Credit Costs

HC Result*2

Expenses Related
to the Business
Integration

OperatingExpenses*4

Positive Factor

OthersFY3/2022
2Q

Negative Factor

 Increased YOY thanks to business growth of subsidiaries in Europe and the U.S. in Account Solution and the marine
container leasing company BIL, etc.
 Increased YOY thanks to the sale of strategic shareholdings to replace the portfolio (in 1Q) and a gain on the recording ofnegative goodwill (0.4 billion yen), etc.
 Increased YOY due to the posting of additional expenses on payment deferrals by some customers in the Aviation business,etc.
 Decreased YoY thanks to the absence of due diligence expenses (5.4 billion yen in total for the former two companies), etc.
posted in 2Q of the previous fiscal year, despite posting of expenses related to trade name change and to systems, etc. (2.8billion yen).
 An increase in expenses associated with the promotion of business activities primarily in overseas offices and the acquisition
cost of marine container leasing company CAI (0.7billion yen), etc.
 An increase in tax expenses, etc.

Note: (1) to (5) are based on figures before tax. Tax expenses are included in (6)*1 The figure for MUL is retroactively adjusted along with the change in the accounting method (refer to page 41 for details)*2 Figures for the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis
in a simplified manner, which are presented as reference value*3 Gross profit + non-operating income/expenses (however, non-operating income/expenses do not include gain on bad debts recovered)*4 Excluding expenses related to the business integration5

Calculation of “Goodwill” Associated with Business Integration

Calculation of “Goodwill” Associated with Business Integration
 At the time of the business integration, the “net amount of HC’s assets andliabilities evaluated at market value” exceeded the purchase price (398.2 billion
yen) calculated based on the number of the shares issued for the integration andits market value, etc. Therefore, we recorded “negative goodwill (extraordinary
income)” of 0.4 billion yen.
 As of the end of FY3/2022 1Q, the “net amount of HC’s assets and liabilities
evaluated at market value” was nearly the same as the “purchase price” based onprovisional calculations. Therefore, we did not recognize either “goodwill” or“negative goodwill”. In FY3/2022 2Q, the evaluation of assets and liabilities atmarket value and the allocation of the purchase price were completed and thecalculations were finalized as above.

6

II. Segment Updates

7

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 developed with 10 segments below.
 We contribute to a prosperous and sustainable future by creating social value through maximizing the potential of assets.

Focused Business Domains
Social Infrastructure &Life

Targets

 Target: Social
infrastructure related toindustrial
infrastructure/lifestyles
 Provide value toward therealization of more
prosperous lives byimplementing real estate
financing, business
operation, and social
infrastructure investment

Environment &EnergySales Finance Target: All aspects energy  Target: Assets forcreation, energy storage,business that underpins
and energy conservation
economic activity (e.g.
(mainly renewable energy)
industrial machinery,
telecommunications
 Develop joint businessequipment, OA
with strategic partners inequipment)
addition to project
investment and financing

Mobility

Global Assets

 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 Promote diverse asset
business based on
operating leases

 Accelerate labor-savingand streamlining throughdigitalization

Customer Business

Segments

Account Solution
Environment &Renewable Energy

LIFE
Real Estate

Vendor Solution

Mobility

Aviation
Logistics

Others8

Increase/Decrease in Segment Profit and Assets
 From FY3/2022, reporting segments of MUL and HC are integrated and reorganized. (Refer to page 30 for details)
Segment Profit (Quarterly Net Income Attributable to Owners of the Parent by Segment)(Billion Yen)

0.3

FY3/2021
2Q(Reference)
Total：36.9

9.8

8.5

14.5

2.2 1.5

3.6

3.2 0.5▲7.4

0.0
FY3/2022
2Q

27.6

13.4

1.7 2.1

7.1

3.2

4.2

Total：60.4

2.0 ▲1.3
1.0▲0.9

Customer BusinessAccount Solution

Vendor Solution

Segment Profit

LIFE

Real Estate

9.8
8.5
2.2
1.5

27.6
13.4
1.7
2.1

+17.8
+4.9
-0.4
+0.6

2,129.5
2,109.2
434.4
321.8

2,050.9
2,135.5
436.8
327.8

Changefrom
FY3/2021
-78.5
+26.3
+2.4
+6.0

Real Estate

14.5

7.1

-7.4

955.6

944.6

-11.0

Environment &Renewable Energy

3.6

3.2

-0.3

322.4

320.7

-1.6

Aviation

3.2

4.2

+0.9

1,203.8

1,305.8+102.0Logistics

0.3

2.0

+1.7

545.5

583.3

+37.7

Mobility
Others

0.5
0.0

1.0
-0.9

+0.5
-0.8

161.1
355.7

165.0
342.6

+3.8
-13.1

Adjustments

-7.4

-1.3

+6.0

65.4

10.4

-55.0

Total

36.9

60.4

+23.5

8,604.8

8,623.9+19.1(Billion Yen)
Customer BusinessAccount Solution
Vendor Solution
LIFE

FY3/2021 FY3/2022
2Q
2Q

Environment & Renewable Energy

Aviation

Logistics

Mobility

OthersAdjustments

Segment Assets
YOY

FY3/2021

FY3/2022
2Q

Major Factors for Changes in Segment Profit

Increased thanks to performance improvement of ENGS, our U.S. vendor finance company, and sale of strategic shareholdings
Increased thanks to business growth mainly in Europe and the U.S.
Decreased due to a decline in new transactions volume and segment assets in the previous fiscal year, etc.
Increased thanks to steady performance in real estate-related business and declined expenses
Decreased due to a reactionary fall in gains on sales and the absence of compensation received in association with theredevelopment project, etc., that were posted in FY3/2021 2Q
Decreased due to a reactionary fall in solar energy-related gains on sales that were posted in FY3/2021 2Q, etc., despite anincrease in electricity sales revenue
Increased thanks to the posting of gain on valuation of certain receivables from bankrupt debtors, etc., although additional
credit costs were posted
Increased thanks to the business growth of marine container leasing company BIL and expansion of revenues from an equitymethod investee company, etc.
Increased thanks to favorable sales of used vehicles in Japan and overseas
Posting of valuation loss in association with a decline in fair value of certain investee in the infrastructure business, etc.
A decline in expenses associated with advanced funding posted in FY3/2021 2Q and in expenses related to the businessintegration, etc.

9Focused Business Domains

Customer BusinessSocialInfrastructure& LifeMajor Figures (Billion Yen)
FY3/2021 2Q*1 FY3/2022 2Q

YOY*2

Gross Profit

29.9

31.5

+1.5

Segment Profit

9.8

27.6

+17.8

New Transactions Volume

279.2

260.1

-19.1

Domestic

192.3

184.7

-7.6

Overseas

86.8

75.3

-11.5

North America

41.5

49.9

+8.3

ASEAN

25.5

12.1

-13.3

China Region

19.2

13.2

-5.9

Others

0.5

-

-0.5

Segment Assets

2,129.5

2,050.9-78.5

Domestic

1,700.4

1,660.5-39.8

Overseas

429.1

390.4

-38.6

North America

202.3

212.3

+9.9

ASEAN

107.9

97.3

-10.5

China Region

73.9

72.1

-1.7

Others

44.9

8.6

-36.3

Environment& Energy

Sales
Finance

Mobility

GlobalAssetsComment
Gross profit increased YOY thanks to the performance
improvement of ENGS, US sales finance company, despite theimpact of the deconsolidation of Hirogin Lease, etc.

Segment profit increased YOY thanks to the sale of strategic
shareholdings, which was executed in 1Q aiming to replace theportfolio.

Segment assets decreased vs. end of FY3/2021 due to theimpact of the sale of strategic shareholdings and a decrease in
new transactions volume, etc.

Segment Assets of Customer Business by Region (FY3/2022 2Q)

Overseas19.0%

China Region
3.5%
ASEAN
4.7%

Others0.4%

North America
10.4%
Total
2,050.9
Billion Yen

Domestic
81.0%

Japan
81.0%

*1 Segment assets are for FY3/2021*2 Segment assets are change from FY3/2021

10Focused Business Domains

Account Solution

SocialInfrastructure& LifeMajor Figures (Billion Yen)
FY3/2021 2Q*1 FY3/2022 2Q

YOY*2

Gross Profit

37.6

48.8

+11.2

Segment Profit

8.5

13.4

+4.9

Domestic

1.7

2.8

+1.1

Overseas

6.7

10.5

+3.8

Europe

5.1

8.2

+3.0

The Americas

1.1

2.3

+1.2

China

0.6

-0.7

-1.4

ASEAN

-0.2

0.7

+1.0

New Transactions Volume

374.9

513.7

+138.7

Domestic

70.1

71.4

+1.2

Overseas

304.7

442.3

+137.5

Europe

183.7

293.8

+110.1The Americas

71.4

93.2

+21.8

China

31.3

34.1

+2.8

ASEAN

18.2

21.0

+2.7

2,109.2

2,135.5+26.3

Domestic

528.1

507.2

-20.8

Overseas

1,581.0

1,628.3+47.2

Europe

929.7

960.1

+30.3

The Americas

365.1

411.0

+45.9

China

164.6

146.5

-18.0

ASEAN

121.5

110.5

-10.9

Segment Assets

Environment& Energy

Sales
Finance

Mobility

GlobalAssetsCommentSegment profit increased YOY as a result of the businessgrowth thanks to the proactive business operation mainly inEurope and the U.S.



New transactions volume dramatically increased YOY in Europe
thanks to the recovery from a decline in demand affected by the
lockdown in the UK.

Segment assets increased vs. end of FY3/2021 thanks to theincrease in new transactions volume in Europe and the U.S.,
etc.

Segment Assets of Account Solution by Region (FY3/2022 2Q)

China
6.9%
The Americas
19.2%

ASEAN
5.1%

Domestic
23.8%
Japan
23.8%
Total
2,135.5
Billion Yen

Overseas
76.2%

Europe45.0%*1 Segment assets are for FY3/2021*2 Segment assets are change from FY3/2021

11

Focused Business Domains

Vendor Solution

SocialInfrastructure& LifeEnvironment& Energy

Sales
Finance

GlobalAssetsMobility

Comment

LIFE

Focused Business Domains
SocialEnvironment
Infrastructure& Energy& LifeSales
Finance

Mobility

GlobalAssetsCommentSegment profit decreased due to a decline in new transactions
volume and segment assets in FY3/2021, etc.



New transactions volume increased YOY thanks to theimprovement of investment demand of customers.

Major Figures (Billion Yen)Segment profit increased YOY thanks to a decrease in
expenses in addition to the steady real estate-related business(real estate leasing) targeting mainly logistics facilities.

Major Figures (Billion Yen)
FY3/2021 2Q*1

FY3/2022 2Q

YOY*2

FY3/2021 2Q*1 FY3/2022 2Q

YOY*2

Gross Profit

8.0

7.7

-0.3

Gross Profit

7.0

7.2

+0.2

Segment Profit

2.2

1.7

-0.4

Segment Profit

1.5

2.1

+0.6

New Transactions Volume

63.9

70.6

+6.6

New Transactions Volume

83.1

72.3

-10.7

Segment Assets

434.4

436.8

+2.4

Segment Assets

321.8

327.8

+6.0

Leasing

347.4

342.1

-5.3

Real Estate-related

174.6

182.8

+8.1

Finance Leasing

337.8

339.2

+1.4

Leasing

166.8

173.8

+7.0

Operating Leasing

9.5

2.8

-6.7

Securitization (Equity)

7.7

8.9

+1.1

Installment

13.8

13.3

-0.4

Others*3

147.2

145.0

-2.1

Loans

40.9

43.4

+2.4

Others

32.1

37.9

-5.7

*3 Includes PPP/PFI, food and agriculture, and living essentials industry, etc.

*1 Segment assets are for FY3/2021*2 Segment assets are change from FY3/2021

12Focused Business Domains

Real EstateSocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)
FY3/2021 2Q*1 FY3/2022 2Q

YOY*2

Segment Profit

22.9
14.5

15.3
7.1

-7.6
-7.4

New Transactions Volume

74.2

53.2

-20.9

Segment Assets

955.6
254.9
248.7
122.7
103.1
19.5
64.8
48.0
16.7

944.6
252.9
238.4
112.1
94.6
17.5
59.8
42.4
17.3

-11.0
-2.0
-10.2
-10.5
-8.5
-1.9
-4.9
-5.5
+0.5

Real Estate Rental
Business

89.7

87.3

-2.4

Real Estate Revitalization
Investment

174.6

Gross Profit

Real Estate Leasing
Other Real Estate Finance
Securitization (Debt)
Domestic
Overseas

Securitization (Equity)
Domestic
Overseas

193.9

+19.2

*1 Segment assets are for FY3/2021*2 Segment assets are change from FY3/2021

Amount of Equity Contribution for Domestic Securitization/Real
Estate Revitalization Investment*3*4 (Billion Yen)
FY3/2021
Total
Domestic Securitization
Real Estate Revitalization
Investment

FY3/2022 2Q

Change from
FY3/2021

111.4
37.2

119.4
31.6

+8.0
-5.5

74.1

87.7

+13.5

Sales
Finance

Mobility

GlobalAssetsCommentSegment profit decreased YOY due to the reactionary fall inlarge gains on sales and the absence of compensation received
in association with redevelopment projects, etc. that wereposted in FY3/2021 2Q.

While the business is expected to grow in 2nd half vs. 1st half
thanks to the gains on sales.

Ratio of Amount of Equity Contribution for Domestic
Securitization/Real Estate Revitalization Investment*3*4 (FY3/2022 2Q)(1) By Asset Type
Residence
1.5%
Others
10.2%
Logistics
16.6%(2) By Region
NagoyaMetroporitan
District
7.2%

Office
29.2%

Total
119.4
Billion Yen
Commercial
Facility
Hotel
18.6%
23.9%

Others10.2%
Tokyo
Metroporitan
District
55.7%

Total
119.4
Osaka Billion Yen
Metroporitan
District
26.9%*3 Management accounting figure (total of equity investment in domestic securitization/realestate revitalization). The figure is not equal to the equity balance of segment assets forsome investees because they are consolidated subsidiaries and investment and capital areoffset in financial accounting*4 Relevant segment assets for domestic securitization are 48.0 billion yen for FY3/2021 and42.4 billion yen for FY3/2022 2Q. Those for real estate revitalization investment are 174.6
billion yen for FY3/2021 and 193.9 billion yen for FY3/2022 2Q

13

Focused Business Domains

Environment & Renewable Energy
Major Figures (Billion Yen)
FY3/2021 2Q*1 FY3/2022 2Q

SocialEnvironment
Infrastructure& Energy& Life

7.6

7.1

-0.4

Segment Profit

3.6

3.2

-0.3

New Transactions Volume

28.2

17.2

-10.9

Segment Assets

322.4

320.7

-1.6

Finance

91.6

79.4

-12.1

Power Generation
Business Assets*3

229.1

237.9

+8.7

1.6

3.4

+1.7

GlobalAssets

Segment profit decreased YOY due to the reactionary fall insolar energy-related gains on sales that were posted in
FY3/2021 2Q, while the electricity sales revenue increased as
power plants of our investees newly began the operation.



Performance in 2nd half is expected to be better than 1st half,because multiple sales of assets are expected in 2nd half andthere is a tendency that more electricity is generated in 2nd halfwhen wind conditions are favorable.

Changes in Domestic and Overseas Output in Operation Based on the Equity Ownership (MW)Others*1 Segment assets are for FY3/2021*2 Segment assets are change from FY3/2021

The output of projects that have begun operations is 1.2GW.
The total output combined with projects that have executed thecontracts but have not begun operation is 1.5GW.

Domestic and Overseas Output in Operation Based on the Equity Ownership*3*4*5 (MW)(Includes results in the Infrastructure & Investment Business Division)

FY3/2021

FY3/2022 2Q
1,236

+100

Solar Power

907

962

+54

Domestic

899

945

+45

7
*6

Combined withprojects that have notbegun operation
Approx. 1,500

Change from
FY3/2021

1,136*6

Overseas

Mobility

Comment

YOY*2

Gross Profit

Total

Sales
Finance16+8Wind Power

228

273

+45

Domestic

190

190

-

Overseas

38

83

+45

1,236

1,136
870
661

FY3/2019

273

907

962

201

197
463

228

668
FY3/2020

1,236

FY3/2021

Solar Power

FY3/2022
2Q
Wind Power*3 Includes equity-method investments *5 Projects classified as finance are not included*4 Management accounting figures*6 Revised from the figure in the presentation material
for FY3/2021 results (refer to page 41 for details)

14

Focused Business Domains

Aviation

SocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)
FY3/2021 2Q*1 FY3/2022 2Q

Mobility

GlobalAssetsComment

YOY*2

Gross Profit

14.7

19.8

+5.1

Segment Profit

3.2

4.2

+0.9

New Transactions Volume

67.2

68.5

+1.2

1,203.8

1,305.8+102.0Aircraft Leasing (JSA)

862.9

962.1

+99.1

Engine Leasing (ELF)

244.1

255.3

+11.1

Aircraft Leasing (MHC)

96.7

88.3

-8.3

Segment Assets

Sales
Finance*1 Segment assets are for FY3/2021*2 Segment assets are change from FY3/2021

Segment profit increased YOY thanks to the posting of gain on
valuation of certain receivables from bankrupt debtors despite postingof additional credit costs for certain existing customers. The
receivables from bankrupt debtors will have completed selling in 3Q on
local basis.



The IATA (International Air Transport Association) estimates that mostof airlines will continue to run a loss and return to profitability in 2023
or after since passenger demand has not fully recovered. The
business environment will continue to be harsh.

However, our aircraft leasing business has a highly liquid portfolio
centering on relatively new and next-generation narrow-body aircraft,
and the rate of aircraft’s off leasing as of the end of September thisyear is low as before. An increase in leasing income through theincrease in new deals is also expected.

Breakdown of Owned Aviation-Related Assets (FY3/2022 2Q)
Owned Aviation-related Assets*3*4
FY3/2021(1) By Aircraft Asset
Type/Region

Change from
FY3/2022 2Q
FY3/2021

Number of Aircraft (JSA)

177

190

+13

Number of Aircraft
Purchased

11

14

-

Number of Aircraft Sold

1

1

-

Average Age (JSA)

4.1 years

4.2 years+0.1 years

Number of Aircraft
Engines (ELF)

311

312

+1

Others
10.5%

Total
190
Aircraft
Narrow Body*5
89.5%

Middle East andOthers7.5%
Europe21.4%

Total Americas
39.0%
190
Aircraft

Asia/Oceania
32.1%(2) Aircraft Engine by
RegionMiddle East andOthers11.7%

Europe22.1%

Total Americas
36.5%
312
Engines
Asia/Oceania
29.7%*5 Single-aisle aircraft used for domestic and short-distance flights(A320 series of Airbus, B737 series of Boeing, etc.)*3 Management accounting figures*4 Figures before consolidated adjustments

15

Focused Business Domains

Logistics

SocialEnvironment
Infrastructure& Energy& LifeMajor Figures (Billion Yen)
FY3/2021 2Q*1 FY3/2022 2Q

YOY*2

Gross Profit

2.1

4.3

+2.2

Segment Profit

0.3

2.0

+1.7

New Transactions Volume

38.2

37.9

-0.2

Segment Assets

545.5

583.3

+37.7

Marine Containers

223.5

262.4

+38.9

Railway Freight Cars

195.7

202.5

+6.7

Shipping and Others

126.1

118.2

-7.9

Mobility

GlobalAssetsComment
Gross profit increased YOY thanks to the increase in marine
container assets and the increased operating rate of owned
assets.
 Segment profit increased YOY thanks to expansion of revenues
from an equity-method investee company in the auto leasing
business, etc. in addition to an increase in gross profit.
 Segment assets increased vs. end of FY3/2021 because
marine container assets have been steadily increased thanks to
the favorable market conditions.


BIL’s Marine Container Fleet (TEU 1,000)


*1 Segment assets are for FY3/2021*2 Segment assets are change from FY3/2021

Sales
Finance

Assets have steadily been increased, leading to the expansionof the portfolio.

Owned Logistics-related Assets*3
FY3/2021

FY3/2022 2Q

Change from
FY3/2021

Marine Container Fleet(TEU 1,000)*4

1,515

1,550

+35

Marine Container Fleet(CEU 1,000) *5

1,659

1,701

+41

Number ofRailway Freight Cars

20,554

1,300
21,219*3 Management accounting figures*4 TEU: Twenty Feet Equivalent Unit (measure to a 20 feet container)*5 CEU: Cost Equivalent Unit (measure to a 20 feet container)

1,515

1,550

FY3/2021
21/3期

FY3/20222Q
22/3期2Q

1,368

+665
FY3/2019
19/3期

FY3/2020
20/3期

16

Mobility

Focused Business Domains
SocialEnvironment
Infrastructure& Energy& LifeSales
Finance

Mobility

GlobalAssetsComment

Others

Focused Business Domains
SocialEnvironment
Infrastructure& Energy& LifeSales
Finance

Mobility

GlobalAssetsCommentSegment profit increased YOY thanks to the increase in thegain on sales of vehicles for which the leasing term finished inJapan and overseas, etc. responding to the high demand forused vehicles on a global basis.

Segment assets increased vs. end of FY3/2021 because of theacquisition of Euro Fleet*1, a Hungarian auto leasing company.

Major Figures (Billion Yen)Segment profit decreased YOY due to posting of valuation loss
in association with a decline in fair value of certain investee in
the infrastructure business., etc., while the sales of informationand communication equipment were favorable in the subsidiaryengaging in the purchase and sales of used equipment.

Major Figures (Billion Yen)
FY3/2021 2Q*2 FY3/2022 2Q

YOY*3

FY3/2021 2Q*2 FY3/2022 2Q

YOY*3

Gross Profit

5.8

7.5

+1.7

Gross Profit

6.5

6.9

+0.3

Segment Profit

0.5

1.0

+0.5

Segment Profit

0.0

-0.9

-0.8

New Transactions Volume

20.9

24.9

+4.0

New Transactions Volume

22.0

28.3

+6.3

Segment Assets

161.1

165.0

+3.8

Segment Assets

355.7

342.6

-13.1

Domestic

99.3

98.9

-0.3

Healthcare

157.3

159.0

+1.6

Overseas

61.7

66.0

+4.2

Infrastructure &Investment

111.6

127.2

+15.5

Others

86.7

56.3

-30.3

*1 MHC Mobility [Poland] acquired*2 Segment assets are for FY3/2021*3 Segment assets are change from FY3/2021

17

III. PMI and Management Plan

18

PMI Progress
 PMI has been progressing more smoothly than initially expected.
 The services and systems utilized in HC before the business integration have continued the utilization for a limited duration after the
integration in terms of business continuity. The alternatives of these services and systems have been promoted smoothly and will havebeen completed until the end of this fiscal year.
 Thanks to a range of company-wide communication initiatives and lively discussions from each working group, we will move into thephase of establishing synergy initiatives and creating synergies.
Synergy Measures(When the integration was announced)

Areas
Management
Resource
Synergy Optimize management resources Integrate procurement

Progress Starting the organizational restructuring of Corporate Center’s Operational optimization by organizing operational processes and systeminfrastructures
 Lively discussions in each sub working group such as Domestic Sales Working
Group and Overseas Working Group

Sales
Synergy Top-line growth through mutual use of thesales network

 Creating synergy initiatives and ideas by promoting understanding of MHC Groupbusinesses through internal orientation sessions and communication initiatives for
products and businesses
 Establishing evaluation systems to expand business synergy

Investment
Synergy Utilize surplus capital from business integrationand the effects of portfolio diversification interms of both business and regionManage capital effectively while maintaining
present credit ratings

Use surplus capital for business investment
and to acquire assets

 Having entered into a definitive agreement for acquiring CAI International, a US
leading marine container leasing company
 Established M&A Advisory Gr. for the purposes of enhancing the promotionalframework for strategic investment deals

19Topics in Focused Business Domains
Customer BusinessSocialInfrastructure& LifeEnvironment &EnergySales FinanceAccount Solution

Vendor Solution

LIFE

Real Estate

Environment & Renewable Energy

Aviation Selected as a business operator and MHC will lead the PFI to develop a new general
gymnasium in Shimonoseki City.
 The construction of CPD Hirakata, a logistics facility consisting of multiple tenants, wascompleted in Hirakata City, Osaka Prefecture.
 With Mori Trust, SoftBank Robotics and Octa Robotics, and MHC started research &development for building a robot-friendly environment.
 Acquired the shares of a Vietnamese wind power generation company and entered into
the wind power generation market of Vietnam.
 Established the Tokorozawa Kitaiwaoka Solar Power Plant in July 2021 under the solar
sharing model which allows to cope with both providing electricity to Tokorozawa City,
Saitama Prefecture, and cultivating blueberries, etc.
 Invested in a solar power generation and supply business in California, US.

Logistics

Mobility

OthersNew general gymnasiumin Shimonoseki City

CPD Hirakata

Wind power generation Tokorozawa Kitaiwaoka
plant in Vietnam
Solar Power Plant

 Has utilized “Hitachi AI Technology/H” of Hitachi to strengthen competitiveness byincreasing efficiency of the screening of micro loans.
Image

Mobility

Image MHC Mobility Sp. z o.o., a Polish subsidiary, acquired Euro Fleet, an auto leasing
company in Hungary.
Euro Fleet
Corporate logo

Global Assets

Head Office Entered into an agreement for acquiring CAI, major US marine container leasing
company.
 Invested in Universal Hydrogen Co., a startup engaging in the development of modular
capsules for hydrogen storage and the powertrain for hydrogen-powered aircraft in
California, US.

ImageEuro Fleet
Office reception

Image of modular capsulesfor hydrogen storage

20

Acquisition of CAI International, US Leading Marine Container Leasing Company
 As we announced on June 18, 2021, MHC has entered into a definitive agreement for acquiring CAI International, a US leading marine
container leasing company, with the goal to strengthen the marine container leasing business which expects stable demand for leasing
and high profitability. (The acquisition is scheduled to be completed in FY3/2022 3Q.)
Schedule
June 18, 2021

September 2, 2021

Announced theacquisition of CAI

Merger agreement for
acquisition wasapproved at CAI’s
special meeting ofshareholders

During November toDecember, 2021

End of December, 2021
(Financial results for FY3/2022 3Q)

Acquisition of CAI isscheduled to becompleted(In case the acquisition will completeduring November to December 2021)

CAI will be consolidated into MHC
CAI’s B/S as of the completion of the acquisition will
be consolidated to MHC’s B/S based on simple
calculation. P/L figures from the completion to the endof December 2021 will be consolidated to our financial
results for FY3/2022 4Q.

Results*1

OutlineCompany Name
Head Office Location
Representative

CAI International, Inc.

(US$M)

Steuart Tower, 1 Market Plaza, Suite 2400,
San Francisco, CA
Timothy Page,
President and Chief Executive Officer

Stated Capital

USD 103.867 million

Date of Establishment

August 3, 1989

Offices

13 global locations, with 2 offices in the US
and others in 12 countries(as of end-December, 2020)

Number of Employees

99 (as of end-December, 2020)

FY12/2018

FY12/2019

FY12/2020

FY6/2021

Revenues

285

299

294

166

Operating
Income

150

140

149

100

Net Income*2*3

77

47

72

69*4

Total Equity

701

693

702

756

Total Assets

3,013

2,902

2,613

2,955

*1 Figures are on a consolidated basis and rounded*2 Net income attributable to CAI common stockholders*3 CAI sold their logistics and rail leasing businesses in August 2020 and December 2020
respectively. Net incomes in the above table are net incomes from their existing businessexcluding such businesses already sold*4 Quarterly net income attributable to owners of the parent

21

Management Plan
 To achieve “our mission” and “our vision”, we will establish short- and medium-term “management plan” which are composed of businessstrategies and management base strategies.
Structure of the Management Plan
External Environment

Basic Management Policy

Megatrends
1. Demographics

2. Climate Change

4. Wealth Disparity

Our
Mission経営理念

3. Geopolitics andEconomy5. Expanding
Technologies

Stakeholders' needs

Our Vision
経営ビジョン
Materiality

ActionPrinciples
行動指針

Management
経営計画Plan
Business Strategies by Division
部門別事業戦略・Management
Base Strategies
経営基盤戦略（ｺｰﾎﾟﾚｰﾄｾﾝﾀｰ）(Corporate Center) Materiality have been identified based on the employee questionnaire
and interviews with external stakeholders, etc. and will be released by
the end of this year.

Basic Management Policy Our Mission:

What we aspire to do in the long term.

 Our Vision:

What we should do to achieve our mission

 Action Principles: “Values and attitudes each employee should have”
and the “actions each employee should take” toachieve our mission and vision

22

Milestones for Establishing the Management Plan We plan to release our medium- and long-term management direction together with the announcement of FY3/2022 financial results.
Based on this direction, we will consider detailed initiatives to formulate the new Medium-term Management Plan in FY3/2023.
Milestones for Establishing the Management Plan
FY3/2022
Framework forthe medium- andlong-term direction

FY3/2023

Details of themedium- andlong-term direction

Basic study of the
new Medium-termManagement Plan

FY3/2024

Formulation of the
new Medium-termManagement Plan

Launch of the new
Medium-term Management
Plan in April 2023 (plan)

Analyze megatrends
Identify material issues
Formulate action principles
Consider strategies by business
Formulate a consolidated planfor FY3/2023

December 2021:
Release of the Materiality(plan)
Now

Consider strategies by businessfor FY3/2024-FY3/2026
Formulate a consolidated planfor FY3/2024-FY3/2026

May 2022 (upon the announcementof FY3/2022 financial results):
Release of the medium- andlong-term management direction (plan)

In FY3/2023:
Release of the new Medium-termManagement Plan (plan)

FY3/2022 2nd half:
Full-fledged examination of the
new Medium-term Management Plan

23

Analysis of External Environment (Whole Picture of Megatrends)

Megatrends

1. Demographics

2. Climate Change

3. Geopolitics and Economy

Impact of demographics on
the economy, social systems,
and business

Risks increased by risingtemperatures, resource depletion,
outbreak of infectious diseases

Collapses of consensus
and division on a global basis,rising populism

4. Wealth Disparity

5. Expanding Technologies

Deepening wealth disparities
and diminishing middle classes

Change in society and subsequent
corporate reform owing to the
expansion of new technologies

Japan

Europe, Americas, China Region,
Asia/Oceania

 As the first step in the Management Plan formulation process, the megatrends to be a prerequisite for discussions have been analyzed.
 Focus will be placed on the following 5 megatrends as they are “major events” that are considered to have a significant impact oncompanies in the medium- to long-term, and from this the needs of stakeholders originating from these megatrends will be ascertained.

Stakeholders’ Needs
 CSR
 Policies to reduce
disparities Information disclosure
requirements Increasing
environmental
 Establishment of laws
initiatives
and regulations for trade Enhancement ofgovernance Expanding ESG
investments
 Sustainability

 Ethical consumption
 Cybersecurity
 Personal information
protection laws

 Diversity
 Improving working
environments
 Protecting humanrights24

Our Efforts Toward Sustainability
 MHC, in the interests of being a company that contributes to a sustainable and prosperous society, established the “Sustainability
Committee” in April 2021 as an advisory to the Executive Committee for the purpose of leading and promoting management that is mindfulof sustainability.
Overview of and Efforts by the Sustainability Committee At the First Meeting of the Sustainability Committee held in May 2021, the latest trends in sustainability, the future steps in sustainability
promotion, and the efforts relating to sustainability made by both former companies were shared, thus the understanding of the issues
were deepened.
 At the Second Meeting of the Sustainability Committee held in October 2021, efforts to make a foundation for the promotion of companywide sustainability were made, for example by proceeding with discussions on identifying material issues, in preparation for theformulation of the new Medium-term Management Plan.

Support for the TCFD (Task Force on Climate-Related Financial Disclosure) Recommendations

Our sustainability website

 MHC declared its support for the recommendations of the Task Force on Climate-Related Financial
Disclosure. MHC strives to help resolve the gamut of issues facing society, including climatechange. Therefore, in conjunction with going deeper in our efforts, MHC will continue working moreexhaustively toward fulfilling our communication and disclosure obligations in line with the TCFD
framework, so that we can communicate with all of our stakeholders more clearly.

Website on MHC’s Sustainability Initiatives
 We launched a new page for the appropriate and timely disclosure of MHC’s sustainability-related
initiatives on the MHC corporate website.
(https://www.mitsubishi-hc-capital.com/english/sustainability/index.html)

25

IV. Forecast for FY3/2022

26

Forecast for FY3/2022
 The progress rate against the forecast for FY3/2022 (net income: 95.0 billion yen) was 63.7%, thanks to the business growth in Europe
and the US and a steady promotion of asset turnover.
 While top-line growth is expected to remain strong thanks to business growth and continuous asset turnover, forecast for FY3/2022
remains unchanged because there is uncertainty in future external environment and possibility of the occurrence of credit costs in the
Aviation business, etc.

FY3/2022*1*2

YOY
ChangeYOY
Change (%)

87.3*4

95.0

+7.6

+8.8%

FY3/2021(Billion Yen)

*1
*2
*3
*4
*5

1

Net Income Attributableto Owners of the Parent

2

Dividend per Share¥25.50*5¥26.00+¥0.50-3

Payout Ratio

41.1%*5

39.3%

-1.8P

-

4

ROE

7.3%*4

8.0%

+0.7P

-

5

OHR*3

55.9%*4

55.9%

0.0P

-

Forecast as of November 12, 2021
The assumed foreign exchange rates are $1=¥108, £1=¥150, €1=¥129
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
Calculated based on the results of MUL and HC in FY3/2021 (the figures are for reference because MUL used J-GAAP and HC used IFRS)MUL results in FY3/2021

27

Dividend Policy
 We will return profits to shareholders by distributing dividends and the dividend per share is estimated to be 26.00 yen, up 0.50 yen YOY.
We plan to distribute the FY3/2022 interim dividend of 13.00 yen per share, up 0.25 yen YOY.
Dividend History of MHC (MUL)

41.1%

31.5%

30.4%
18.9%
11.4%

13.4%

13.0%

12.7%

12.2%

12.0%

11.8%

25.2%

21.8%

20.0%

19.2%

39.3%

12.4%

25.5

25.0

23.5

26.0

18.0
8.0

9.5

FY3/2014

FY3/2015

12.3

13.0

FY3/2016

FY3/2017

13.0

FY3/2018

Dividend per Share*1

FY3/2019

FY3/2020

Equity Ratio

FY3/2021

FY3/2022(Forecast)

FY3/2019

FY3/2020

FY3/202146.0

150.0*2

94.0

Payout Ratio[Reference] Dividend History of HC
FY3/2014
Dividend per Share (Yen)

48.0

FY3/2015
60.0

FY3/2016
84.0

FY3/2017
86.0

FY3/2018
86.0*1 MUL results from FY3/2014 to FY3/2021*2 Includes special dividends (dividend of 40.0 yen per share) in FY3/2020

28

V. Appendix

29

New Reporting Segments
 From FY3/2022 1Q, based on the business organization of new company, the reporting segments of MUL and HC were integrated andreorganized.
Previous Segments

Current Segments

Reporting Segments

M
U
L

BeforeFY3/2021

FY3/2022 2Q

2,129.5

2,050.9

2.109.2

2,135.5

A

Customer Business

B

Aviation

C

Real Estate

D

Logistics

Vendor Solution

B

434.4

436.8

E

Environment & Energy

LIFE

A

321.8

327.8

F

Healthcare

Real Estate

C

955.6

944.6

G

Infrastructure & Investment
E A

322.4

320.7

AviationB

1,203.8

1,305.8

Logistics

D

545.5

583.3

Mobility

A C

161.1

165.0

Others

F G A

355.7

342.6

A

Account Solution
Japan

B
H
C

Reporting Segments

Segment Assets (Billion Yen)*

Vendor Solution

C

EuropeD

The Americas

E

China

F

ASEAN

Customer BusinessAccount Solution

Environment & Renewable EnergyA
A C D EF

* Definition of segment assets is explained in page 41

30

Focused Business Domains

Customer BusinessSocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Japan

Percentage of Customer Businessto consolidated segment assets
RegionOverseas ASEAN China
Others
3.5%
19.0%
4.7%
0.4%

23.8%

North
America
10.4%

 Provides leasing, financing, and other services such as rental with
PCLCM*1and trading of used equipment to the customer base composed ofcorporate customers of MUFG Bank.
 Operates collaborative businesses with major partners by providing “financing
and asset value creation” functions taking advantage of value chain reforms ofspecific sectors.
 Provides asset finance targeting electronic devices and machine tools, etc.
Overseas Provides leasing and financing for Japanese, local, and multi-national
companies in the US, ASEAN and China region.
 Targeting assets are industrial machines, machine tools, construction
machines, IT equipment and commercial vehicles. Recently strengthens
decarbonization-related business such as facility of solar power generation.
 In the US, vendor financing for trucks/trailers, machine tools, construction
equipment, etc. has also been provided through ENGS.

Total 2,050.9
billion yen(FY3/2022 2Q)

Major Companies(Abbreviations are shown in parentheses < >)

Japan
81.0%

Main Business-Leasing, etc.

DFL Lease

Consolidated

Leasing, etc.

Shutoken Leasing

Consolidated

Leasing, etc.

DRS

Consolidated

Rental and leasing, etc.

Mitsubishi HC Capital (U.S.A.)

Consolidated

Leasing, etc.

ENGS Commercial Finance*2<ENGS>

Consolidated

Vendor finance, etc.

Bangkok Mitsubishi HC Capital

Consolidated

Leasing, etc.

Mitsubishi HC Capital (Singapore)

Consolidated

Leasing, etc.

Mitsubishi HC Capital and Finance Indonesia

Consolidated

Leasing, etc.

Mitsubishi HC Capital (Shanghai)

Consolidated

Leasing, etc.

Mitsubishi UFJ Lease & Finance (Hong Kong)

Consolidated

Leasing, etc.

Mitsubishi HC Capital/Domestic Branches

Domestic
81.0%

Image

Consolidated/
Equity-method

Image*2 An operating company of ENGS Holdings Inc.

*1 PCLCM: PC Life Cycle Management31

Focused Business Domains

Account Solution

SocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Japan


Percentage of Account Solution
to consolidated segment assets



24.8%

Europe

ASEAN
China 5.1%
6.9%

Americas19.2%

Operates financing, auto leasing, and other businesses targeting consumers andcorporate customers, mainly in the UK.

Americas

Japan
23.8%



Domestic
23.8%

Provides finance services with a focus on sales finance targeting IT equipment, software,industrial machinery, healthcare equipment, commercial trucks, etc. in the US andCanada.

China/ASEAN

Total 2,135.5
billion yen(FY3/2022 2Q)

Europe45.0%

Integratedly operates China mainly Hong Kong. Through business expansion thatleverages the strength of each company, provides sales finance targeting copy
machines, automobiles, etc. and equipment leasing for local governments.
Provides sales finance for industrial machinery and automotive finance in Singapore,
Thailand, Malaysia, and Indonesia.
Major Companies

Mitsubishi HC Capital/
Hitachi Group Business Department
Mitsubishi HC Capital/
Corporate Business Department
Hitachi Capital (UK)

Overseas
76.2%

Image

Mainly provides sales finance through leasing, installment sales, etc. based on thestrong partnership with the Hitachi group companies.
Provides highly specialized services in specific domains including public sectors andsemiconductor business.

Consolidated/
Equity-method

Main Business-Leasing and financial business-Leasing and financial business

Consolidated

Leasing and financial business

Mitsubishi HC Capital America
Mitsubishi HC Capital Canada Leasing

Consolidated

Leasing and financial business

Consolidated

Leasing and financial business

Mitsubishi HC Capital (Hong Kong)

Consolidated

Leasing and financial business

Mitsubishi HC Capital Leasing (Beijing)

Consolidated

Leasing and financial business

Mitsubishi HC Capital Asia PacificConsolidated

Leasing and financial business

Mitsubishi HC Capital (Thailand)

Consolidated

Leasing and financial business

Mitsubishi HC Capital Malaysia

Consolidated

Leasing and financial business

Arthaasia FinanceConsolidated

Leasing and financial business

Image

32

Focused Business Domains

Vendor Solution

SocialInfrastructure& LifePercentage of Vendor Solution
to consolidated segment assets

5.1%

Operating
Lease
0.7%

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Installment
3.1%

Environment& Energy

Others8.6%

 Provides financing for information and communicationequipment such as PCs and multifunction machines, agricultural
machines and facilities, medical devices, etc. via vendors ofvarious industries.

 Shows a strong presence in small-sized leasing markets
leveraging relationships of trust and know-how that have been
built or accumulated over approx. 20 years, asset size andabundant data.
 Promotes inside sales utilizing CTI* to achieve improvement ofboth of productivity and vendor satisfaction.

Loans
9.9%

Total 436.8
billion yen(FY3/2022 2Q)

Finance Lease
77.7%

Major Companies

Consolidated/
Equity-method

Main
Business

Mitsubishi HC Capital/
Vendor Solution Business Department-

Leasing

Consolidated

Leasing

Mitsubishi HC Business Lease

Image

Image

* CTI: Computer Telephony Integration

33

Focused Business Domains

LIFE

SocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Real Estate-related Operates building leasing focusing on logistics facilities.

Percentage of LIFE toconsolidated segment assets

3.8%

Others44.3%

 Promotes the development of next-generation logistics facilities by increasing
the value of both land and building, introducing IoT*1 and robotics, etc.
Others Provides leasing and financing to corporate customers of logistics, commercial,
food/drugs, and medical fields.
 “Community development and regional revitalization” such as PPP/PFI*2
businesses and food/agricultural businesses.
Promotes community development centering on cultural and educational
facilities based on the wide-ranging network with local governments across thecountry and collaboration with partner companies.

Others44.3%

Total 327.8
billion yen(FY3/2022 2Q)

 Provides “BPO*3/risk solutions” such as BPO*3 for HR, payroll and otheroperations, insurance agency business and non-life insurance business.
 Operates “DX*4/new businesses” for building a revenue platform for the future.
Lease
53.0%

Real Estate-related
55.7%
Securitization (Equity)
2.7%

Coconeri*1 IoT:*2 PPP/PFI:*3 BPO:*4 DX:

Nikkan Arena Tochigi in Tochigi
Sports Park East Area

Major Companies

Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/
LIFE Business Department-

Leasing and financial business

Mitsubishi HC Capital
Community

Consolidated

Real estate development/
management/leasing

HCD Properti Indonesia

Consolidated

Real estate leasing

MHC Triple Win

Consolidated

Outsourcing business, business
relating to food, beverages andagriculture

Sekisui Leasing

Consolidated

Leasing and financial business

Capital Insurance

Consolidated

Non-life insurance

Hitachi Auto Service

Equity-method

Automobile-related businesses

Internet of things
Public Private Partnership/Private Finance Initiative
Business Process Outsourcing
Digital transformation

34

Focused Business Domains

Real EstateSocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Securitization Finance Invests and loans in office buildings, logistics facilities and residences throughsecuritization scheme.

Percentage of Real Estate toconsolidated segment assets

11.0%

Real Estate Revitalization Investment
 Through equipment updates, renewal of real estate and management
improvement etc., increase the assets value.
Real Estate Rental

Other Real
EstateFinance25.2%

Securitization
Finance18.2%

Real Estate Leasing Operates real estate rental business centering on commercial buildings.

Total 944.6
Real Estatebillion yen
Revitalization(FY3/2022 2Q)
Real Estate
Leasing
26.8%

 Operates real estate rental business centering on office buildings.

Investment
20.5%

Real Estate
Rental9.3%

Other Real Estate Finance Provides loans related to residences, etc.
Real Estate Asset Management
 Manages private funds and private REITs and provides asset management
services.
Major Companies(Abbreviations are Shown in Parentheses < >)Mitsubishi HC Capital/
Real Estate Business Department
Mitsubishi HC Capital Realty
Mitsubishi HC Capital Property
Diamond Asset FinanceMiyuki Building
Mitsubishi HC Capital Realty (U.S.A.)
Mitsubishi HC Capital Realty Advisors
Center Point Development <CPD>

Building image of〈Osaka Mitsubishi Building(tentative name)〉

Consolidated/
Equity-method

Main Business-

Securitization financeReal estate revitalization
Consolidated
investment
Consolidated
Real estate leasing
Real estate rental and other
Consolidated
real estate financeConsolidated
Real estate rental
Overseas securitization
Consolidated
finance
Consolidated Asset management services
Asset management services
Equity-method
for logistics real estate

Multi-tenant type logistics facility〈CPD Hirakata〉

35

Focused Business Domains

Environment & Renewable Energy

SocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Finance Widely provides project finance, etc. for various renewable energy power
generation businesses.

Percentage of Environment & Renewable
Energy to consolidated segment assets
Others
1.0%

3.7%

Finance24.8%

Power Generation
 Works on development and management of renewable energy power
generation businesses, mainly using solar light and wind power. And
participates projects through equity investments.
 Operates solar PPA*1 businesses in Japan and overseas.
There are 24 solar power generation systems that have been installed basedon a PPA*1 in Japan and overseas as of the end of September 2021. MHC
aims to install the systems at approx. 100 places in the next few years.
OthersTotal 320.7
billion yen(FY3/2022 2Q)

 Participates demonstration of VPP*2 business, etc. as a next-generationenergy management system.
 Acquires license of electricity retail with an eye on expansion of non-FIT
businessPower
Generation
74.2%

Mega solar power plantin Namie town, Yatsuda district

Image

Major Companies

Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/Environment &Energy Business Department-

Renewable energy business

Mitsubishi HC Capital/Renewable
Energy Business Department-

Renewable energy business

MUL Energy Investment

Consolidated

Operation and asset management of
renewable energy business

HGE

Consolidated

Power generation from renewable energy

HWP

Consolidated

Power generation from renewable energy

HSE

Consolidated

Power generation from renewable energy

MHC Utility Innovation

Unconsolidated Development of energy-related businesses*1 PPA: Power Purchase Agreement*2 VPP: Virtual Power Plant

36

Focused Business Domains

Aviation

SocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Aircraft Leasing (JSA)

Percentage of Aviation to
consolidated segment assets

 Operates businesses targeting airlines all over the world through JSA,
a US aircraft leasing company.

15.1%
Aircraft Leasing, etc.
(MHC)
6.7%
EngineLeasing(ELF)
19.6% Total 1,305.8

 Sales & leaseback*1 of new aircraft is the main type of deals.
 The aircraft mainly held is narrow-body one with high liquidity. JSA’s
portfolio management focuses on the relatively new aircraft and longterm and stable cash-flow (long leasing period), in order to maintainthe liquidity of the aircraft being held.
Engine Leasing (ELF) Operates leasing of spare engines globally via ELF, an aircraft engine
leasing company in Ireland.
 Operates aircraft engine part-out business via ELF’s subsidiaries.

billion yen(FY3/2022 2Q)

Aircraft Leasing, etc. (MHC) Operates JOLCO*2.

Aircraft Leasing
(JSA)
73.7%

Image

Major Companies
Consolidated/(Abbreviations are Shown in Parentheses < >) Equity-method

Image

Main Business

Mitsubishi HC Capital/
Aviation Business Department-

Japanese Operating
Lease with call option,
etc.

Jackson Square Aviation <JSA>

Consolidated

Aircraft leasing

Engine Lease Finance <ELF>

Consolidated

Aircraft engine leasing,part-out*1 Purchase aircraft from an airline company (customer) and lease it back to the customer.
*2 JOLCO: Japanese Operating Lease with call option

37

Focused Business Domains

Logistics

SocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Marine Containers

Percentage of Logistics toconsolidated segment assets

 Operates businesses via Beacon Intermodal Leasing (BIL), a US
marine container company.

6.8%

 While BIL is the newest company among major ones in the industry(established in 2008), they are the 5th largest in the world in terms ofthe number of containers held (TEU* basis).
Railway Freight Cars

Shipping
and Others
20.3%

 Formed a business alliance with The Greenbrier Companies (GBX), a
major railway freight car company in the US, in 2014, and launched thefreight car business in North America.
 Strengthened the collaborative relationship in 2017 to promote theexpansion of the business.

Total 583.3
Marinebillion yen Containers(FY3/2022 2Q)
45.0%

Shipping and Others
 Provides ship finance.

Railway
Freight Cars
34.7%

 Provides mobility services centering on automobile leasing.
Major Companies(Abbreviations are Shown in Parentheses < >)

Image

Image

Consolidated/
Equity-method

Main Business

Mitsubishi HC Capital/
Logistics Business Department-

Ship financeBeacon Intermodal Leasing <BIL>

Consolidated

Marine container leasing

MUL Railcars <MULR>

Consolidated

Railcar leasing

Takari Kokoh Sejahtera

Consolidated

Auto leasing, etc.

Mitsubishi Auto Leasing

Equity-method

Auto leasing* TEU: Twenty Feet Equivalent Unit (measure to a 20 feet container)

38

Focused Business Domains

MobilitySocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

Japan

Percentage of Mobility toconsolidated segment assets

1.9%

 Having a strong customer base composed of Hitachi Group companies andmajor retailers, operates an auto leasing business through cooperation withpartner companies.
 The only one company in the industry, which holds factories to convert cars towelfare vehicles. Optimizes welfare vehicles depending on the usage
environment and purpose.
Overseas

Overseas40.0%

Total 165.0
billion yen(FY3/2022 2Q)

 In the European continent, MHC operates businesses focusing on operating
leasing, mainly full service lease of passenger cars and commercial vehicles
for corporate customers.
 Operates MaaS*1 which efficiently provides a wide-ranging means oftransportation, such as car sharing and public transportation, from theperspective of supporting decarbonization of customers.
 Supports customers’ transition to EV*2 in the backdrop of the strengthening ofenvironmental regulations in the European continent.

Japan
60.0%

Classification ofConsolidation

Main Business-

Auto leasing

Mitsubishi HC Capital Auto Leasing

Consolidated

Auto leasing

MHC Mobility [Poland] *3

Consolidated

Auto leasing

MHC Mobility Holding

Consolidated

Financial holding company

MHC Mobility [Netherlands] *3

Consolidated

Auto leasing

MHC Mobility [Germany] *3

Consolidated

Auto leasing and rental

MHC Mobility [Austria] *3

Consolidated

Auto leasing and rental

Major Companies
Mitsubishi HC Capital/Mobility
Solution Business Department

Indoor exhibition hallin MHC Mobility [Netherlands]

Image*1 MaaS: Mobility as a Service*2 EV:
Electric Vehicle*3 Location

39

Focused Business Domains

OthersSocialInfrastructure& LifeEnvironment& Energy

Sales Finance

Mobility

Global Assets

Business Outline

Breakdown of Segment Assets

HealthcarePercentage of others toconsolidated segment assets



4.0%



Provides equipment leasing for medical institutions and nursing facilities, buying andselling medical equipment and factoring for medical fee receivables.
Manages an investment fund that supports the management of medical and nursing
facilities.
Provides consulting services for medical institutions.

Infrastructure & Investment


Others16.5%

Participates overseas infrastructure businesses (providing investments and loans).
Domestic public infrastructure business sponsored by private sector via PPP/PFI*(investments, loans and providing management of business company).
Provides buyout finance and investment involving M&As and invests in bad debt, etc.

OthersTotal 342.6
billion yen Healthcare
46.4%(FY3/2022 2Q)

Payment services, credit collection, stocking and selling used products and trust business,
etc.

Major Companies
Consolidated/(Abbreviations are Shown in Parentheses < >) Equity-method
Mitsubishi HC Capital/
Healthcare Business Department

Infrastructure& Investment
37.1%

Image



Submarine power transmission in Germany-

Japan Medical Lease

Consolidated

MUL Healthcare

Consolidated

Healthcare Management Partners

Consolidated

Mitsubishi HC Capital/
Infrastructure Business Department
Mitsubishi HC Capital/
Investment Business Department
Japan Infrastructure Initiative <JII>
Mitsubishi HC Capital/Business & Strategic
Planning Division
Mitsubishi HC Capital Servicer
MHC Reuse Services
Mitsubishi HC Capital Trust-

Main Business
Medical equipment leasing
and medical fee factoring
Medical equipment andreal estate leasing
Support service for installment
of medical equipment andMedical institution consulting
Management of fund to support
management specializing in the
medical and long-term care fields
Infrastructure business,
PFI business-Corporate investment

Consolidated

Infrastructure investment and loan
Business planning,settlement services, etc.
Credit management and collection
Purchase and sale of used goods
Trust business

Consolidated
Consolidated
Consolidated* PPP/PFI: Public Private Partnership/Private Finance Initiative40

Impact of Definitional Changes on Results from FY3/2022
 From FY3/2022, we have changed the definitions and accounting methods as follows, and made retroactive adjustments on some items.
Items Changed (Former Name)

AppliedCompany

Retroactive
Adjustment

Details of Definitional Changes

N/A

Divisional Assets: “Operating assets” + “equity-method investments”
Segment Assets: “Operating assets” + “equity-method investments” + “goodwill” + “investment
securities, etc.”

Applied

Before: In HC, all contract amounts were posted as “volume of business”
After: Posting only the principals out of contract amounts as “new transactions volume”
Before: Lump-sum recognition of sales→ After: Split recognition of sales
Before: Handle as finance for the accounting → After: Handle as leasing and makepurposeadjustment for taxable income
Before: Lump-sum posting at issuance→ After: Split posting over redemption periodtimingApplied

Before: MUL output = regardless of the scope of consolidated accounting of investee companies,
output is divided on a pro rata basis according to the equity ownership
HC output = output according to the scope of consolidated accounting of investee
companies
1. Consolidated subsidiaries: count 100% output
2. Equity-method affiliates: divide on a pro rata basis according to the equity ownership
3. Other investee companies: no output is counted
After: Regardless of the scope of consolidated accounting of investee companies, total output
is divided on a pro rata basis according to the equity ownership.

1

Segment Assets (Divisional Assets)

MHC

2

New Transactions Volume (Volume of Business)HC

3

Posting of Re-leasing Sales

4

Handling of Lease Finance5

Posting of Corporate Bond Issuance Expense

6

MUL

Calculation Method of Output Based on the Equity
Ownership in the Environment and Renewable Energy
Segment

MHC

Impact of Retroactive Adjustment in FY3/2021 2Q(Million Yen)
New Transactions Volume(Volume of Business)※For Item “2” in the table above

Item
Total

AppliedCompanyHC

FY3/2021 2Q

Impact of Adjustment

Before Adjustment(Volume of business)
798,832

After Adjustment(New transactions volume)548,442454,604
80,85033,632
24,586+26,417
+250
+450
+314

-250,390

PL Items※For Items 3, 4, 5 in the table above

Revenues
Gross Profit
Recurring Income
Net Income

MUL

428,186
80,60033,182
24,271

BS Items※For Items 3, 4, 5 in the table above

Total Equity
Total Assets

MUL

821,233*
6,009,831*

817,906*
6,014,896*-3,327+5,065MHC

1,206MW *298MW *

1,136MW *228MW *

-69MW
-69MW

Output Based on the Equity Ownership Total Output※For Item “6” in the table above
Wind Power* FY3/2021

41

Segment Profit (by Quarter)(Billion Yen)

(a)

(b)

(c)

(d)

(e)=(d)-(c)(f)=(d)-(b)FY3/2021
1Q

FY3/2021
2Q

FY3/2022
1Q

FY3/2022
2Q

QOQ

YOY

1

Customer Business

4.0

5.7

22.6

5.0

-17.6

-0.7

2

Account Solution

3.4

5.1

6.8

6.5

-0.3

+1.4

3

Vendor Solution

1.0

1.1

0.9

0.8

0.0

-0.3

4

LIFE

0.8

0.6

1.1

1.0

0.0

+0.3

5

Real Estate

9.1

5.4

2.7

4.3

+1.6

-1.0

6

Environment &Renewable Energy

2.1

1.4

1.4

1.7

+0.2

+0.3

7

Aviation

3.1

0.0

-2.4

6.6

+9.1

+6.5

8

Logistics

0.0

0.3

0.6

1.4

+0.8

+1.1

9

Mobility

0.2

0.3

0.5

0.4

-0.1

+0.1

10

Others

-0.1

0.0

-0.2

-0.6

-0.4

-0.7

11

Adjustments

-3.2

-4.1

-1.5

0.1

+1.6

+4.3

12

Total Segment Profit

20.6

16.2

32.7

27.7

-4.9

+11.4

42

New Transactions Volume by Segment(Billion Yen)

FY3/2021 2Q*

FY3/2022 2Q

YOY Change

YOY Change(%)

1

Customer Business

279.2

260.1

-19.1

-6.8%

2

Account Solution

374.9

513.7

+138.7+37.0%

3

Vendor Solution

63.9

70.6

+6.6

+10.4%

4

LIFE

83.1

72.3

-10.7

-13.0%

5

Real Estate

74.2

53.2

-20.9

-28.2%

6

Environment & Renewable
Energy

28.2

17.2

-10.9

-38.7%

7

Aviation

67.2

68.5

+1.2

+1.8%

8

Logistics

38.2

37.9

-0.2

-0.7%

9

Mobility

20.9

24.9

+4.0

+19.1%

10

Others

22.0

28.3

+6.3

+28.9%

11

Total New Transactions
Volume1,052.2

1,147.2

+95.0

+9.0%

* Figures for the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis ina simplified manner, which are presented as reference value.(refer to page 41 for details)

43Credit Costs by Segment(Billion Yen)

FY3/2021 2Q*

FY3/2022 2Q

YOY Change

1

Customer Business

1.7

1.6

-0.1

2

Account Solution

5.8

5.4

-0.3

3

Vendor Solution

0.0

0.1

+0.1

4

LIFE

0.0

0.0

0.0

5

Real Estate

0.0

0.0

0.0

6

Environment & Renewable
Energy

0.0

0.0

0.0

7

Aviation

3.3

5.8

+2.4

8

Logistics

-0.1

-0.1

0.0

9

Mobility

0.0

0.0

0.0

10

Others

0.1

0.6

+0.5

11

Total Credit Costs

11.1

13.6

+2.4

* Figures for the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis ina simplified manner, which are presented as reference value.

44

Financial Performance: Profit & Loss Statement
FY3/2021 2Q(Million Yen)
1

Revenues

2

Cost of Revenues

3

Financial Expenses

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
Owners of the Parent

MUL*1 (a)454,604
373,753
32,88980,85048,65020,506
22,773
5,371
32,19933,632
4,918
24,586-

HC*2 (b)372,459
308,754
15,63063,705
49,11325,00817,616
6,488
14,592
16,753671
712,318-

FY3/2022 2Q

MHC*3 (a+b)
827,064
682,508
48,519144,556
97,76445,51540,38911,85946,791
50,3865,590
736,905-MHC
833,358+0.8%
672,183-1.5%
37,717-22.3%
161,175+11.5%
103,024+5.4%
47,914+5.3%
40,655+0.7%
14,453+21.9%
58,151+24.3%
59,089+17.3%
27,274+387.9%229+2,989.7%
60,482+63.9%(Note) Percentage figures (%) in the lower column are YOY (results in FY3/2022 2Q are vs. those of MHC (a+b) in FY3/2021 2Q)*1 Retroactively adjusted figures along with the change of the accounting method (refer to page 41 for details)*2 Figures for IFRS basis converted into J-GAAP basis in a simplified manner, which are presented as reference value*3 Simple sums

45

Financial Performance: Balance Sheet, etc.
FY3/2022 2Q*1

FY3/2021(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 Assets

11

Equity Ratio

12

ROE

13

ROA (Net Income Attributable to
Owners of the Parent on Total Assets )MUL*2 (a)294,241-36.9%
817,906+2.8%
6,014,896-4.4%
5,336,681-2.8%
5,067,292-3.5%
116,078+29.0%
153,309+0.4%
39,269+59.0%
22,501+62.7%
16,767+54.4%
13.4%
+1.1P
7.0%
0.9%
-

HC*3 (b)302,899
432,3093,708,949
3,268,195
3,192,331
24,21351,65056,27435,56420,70911.2%-

MHC*4 (a+b)
597,140
1,250,216
9,723,846
8,604,876
8,259,624
140,291
204,960
95,54358,06637,47612.5%-

MHC405,912-32.0%
1,252,420+0.2%
9,459,998-2.7%
8,623,977+0.2%
8,376,436+1.4%
127,280-9.3%
120,260-41.3%
96,037+0.5%
64,414+10.9%
31,622-15.6%
13.0%+0.5P
10.1%*5
1.3%*5-(Note) Percentage figures (%) in the lower column are vs. end of FY3/2021. (results as of the end of September 2021 are vs. those of MHC (a+b) as of the end of March 2021)*1 Adjustments were made upon the business integration, such as the evaluation of HC’s assets and liabilities at market value and acquisition of MUL shares held by HC*2 Retroactively adjusted figures along with the change of the accounting method (refer to page 41 for details)*3 Figures for IFRS basis converted into J-GAAP basis in a simplified manner, which are presented as reference value*4 Simple sums
*5 ROE and ROA is calculated using annualized net income for FY3/2022 2Q

46

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

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

MUL*2 (a)4,634,956-6.0%2,870,347+0.2%
1,764,608-14.6%
434,171-43.0%
106,230-21.8%
1,224,206+4.7%

FY3/2021
HC*3 (b)2,992,698
1,317,399
1,675,299
209,641
478,334
987,323-

MHC*4 (a+b)
7,627,655
4,187,747
3,439,908
643,812584,565
2,211,530-

FY3/2022 2Q*1
MHC7,417,171-2.8%
4,077,770-2.6%
3,339,400-2.9%
655,788+1.9%
534,792-8.5%
2,148,819
-2.8%

38.1%
70.9%
40.5%
-

56.0%
60.7%
47.1%
-

45.1%
66.9%
43.1%
-

45.0%
-0.1P
67.4%
+0.5P
44.3%
+1.2P

(Note) Percentage figures (%) in the lower column are vs. end of FY3/2021. (results as of the end of September 2021 are vs. those of MHC (a+b) as of the end of March 2021)*1 Adjustments were made upon the business integration, such as the evaluation of HC’s assets*3 Figures for IFRS basis converted into J-GAAP basis in a simplified manner,and liabilities at market value and acquisition of MUL shares held by HC
which are presented as reference value*2 Retroactively adjusted figures along with the change of the accounting method (refer to page 41 for details) *4 Simple sums

Exchange Rate Applied to Financial Results of Major Overseas Subsidiaries*5
Major Overseas MUL
Subsidiaries
FY3/2021 2Q
FY3/2022 2Q
23
24

Exchange Rate Applied to PL
Exchange Rate Applied to BS

Major Overseas HC Subsidiaries
FY3/2021 2Q

FY3/2022 2Q

1$＝JPY108.27

1$＝JPY107.69

1£＝JPY135.38

1$＝JPY106.92

1£＝JPY152.50

1$＝JPY109.80

1$＝JPY103.50*6

1$＝JPY110.58

1£＝JPY152.23*6

1$＝JPY110.71*6

1£＝JPY150.43

1$＝JPY111.92*5 Major overseas MUL subsidiaries: Average rates during Jan. through Jun. applied to PL.
Exchange rate as of end-Dec. 2020 is applied to FY3/2021 BS and
as of end-Jun. is applied to FY3/2021 2Q BS and FY3/2022 2Q BS
Major HC overseas subsidiaries: Average rates during Apr. through Sep. applied to PL.
Exchange rate as of end-Mar. 2021 is applied to FY3/2021 BS and
as of end-Sep. is applied to FY3/2021 2Q BS and FY3/2022 2Q BS*6 FY3/2021

47

Inquiries

Corporate Communications Department
I

Inquiries
TEL： +81 3-6865-3002

II

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

48

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.
 The Amount less than one unit is omitted in this presentation, which may cause fraction error in the total
amount. 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, sell or market securities 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 made in Japanese and translated into English. The Japanese text is the original andthe English text for reference purposes. If there is any conflict or inconsistency between these two texts, theJapanese text shall prevail.

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