This is Takahiro Yanai, President & CEO of Mitsubishi HC Capital. Thank you for taking
the time out of your busy schedules to attend today’s financial results briefing.
Due to the COVID-19 pandemic, we have decided to hold this briefing via Webcast.
Thank you for your understanding and cooperation.
Approximately seven and a half months have passed since we began operations as
Mitsubishi HC Capital Inc., on April 1 of this year.
In the first half of this fiscal year, each working group of the sales divisions have been
discussing lively, and both employees and the management have been in direct dialogueetc. Thanks to these activities, PMI (Post Merger Integration) has been progressing moresmoothly than initially expected.
In addition, we have announced the acquisition of CAI International, a US leading
marine container leasing company in June, 2021, as a concrete outcome of theinvestment synergy born by the business integration. We are currently in the final stagesof the acquisition process.
Today, Director, Senior Managing Executive Officer and Head of the Treasury &Accounting Division Inoue will explain the FY3/2022 2 nd Quarter Results, based on the
FY3/2022 2nd Quarter Results material.
After that I will take my turn to explain PMI progress, the milestones for establishing ofManagement Plan, and the forecast for FY3/2022.
In the end, we will take your questions and comment.
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.
Now, I would like to explain the financial overview and actual results for FY3/2022 2 nd
Quarter Results.
For the results of FY3/2021 2Q and FY3/2021 are the sum of consolidated results of
Mitsubishi UFJ Lease & Finance and those of Hitachi Capital converted into J-GAAP
basis in a simplified manner, and are presented as reference value.

First of all, we describe overall picture of the results as highlights.
Please look at page 3.

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Gross Profit for FY3/2022 2Q increased by 11.5% YOY to 161.1 billion yen, and Net
Income increased by 63.9% YOY to 60.4 billion yen thanks to the business growth
mainly in Europe and the U.S., and other factors ongoing since FY3/2022 1Q.
New Transactions Volume, new assets acquired increased by 9.0% YOY to 1,147.2
billion yen.
The Forecast for FY3/2022, (Net Income: 95.0 billion yen) remains unchanged, and theprogress rate against the forecast for FY3/2022 was 63.7%.

With regard to the detail about what is mentioned at the bottom section of page 3, suchas PMI progress and milestones for establishing the new Medium-term Management
Plan, etc., President & CEO Yanai will explain these matters afterward.
Then please turn to page 4.

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I would like to explain actual results for FY3/2022 2Q.
At the top of the table, column “c” shows reference figures for FY3/2021 2Q, a simple
sum of Mitsubishi UFJ Lease & Finance and Hitachi Capital (hereinafter, “MUL” and“HC”), and the orange-shaded column “d” shows figures for FY3/2022 2Q. YOY changeamounts and rates, and exchange rates effects are shown in column “e” to “g”.
First, Gross Profit in row 2 increased 11.5% YOY, or by 16.6 billion yen, to 161.1 billion
yen. It was mainly because business grew in Europe and the Americas in the “Account
Solution” and the marine container leasing business in the “Logistics” was favorable inassociation with the increased operating rate of owned assets, etc., although gains onsales decreased due to a reactionary fall in the “Real Estate” that were posted in
FY3/2021 2Q.
Net Income in row 5 increased 63.9% YOY, or by 23.5 billion yen, to 60.4 billion yen,
thanks to the sale of strategic shareholdings to replace the portfolio in FY3/2022 1Q, etc.,
in addition to the increase in gross profit.
New Transactions Volume in row 6 increased 9.0% YOY, or by 95.0 billion yen, to
1,147.2 billion yen, thanks to increases in new transactions volume primarily in the“Account Solution” in Europe and the Americas.
Total Segment Assets in row 7 increased 0.2% YOY, or by 19.1 billion yen, to 8,623.9
billion yen, thanks to factors including exchange rate effects from a weakening yen,although there were decreases due to drops in new transactions volume in somebusinesses affected by the COVID-19 pandemic and the sale of strategic shareholdings,
etc.
Then please turn to page 5.

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I would like to explain the factors behind the Increase and Decrease in Net Income
Attributable to Owners of the Parent using the waterfall chart.
The leftmost bar shows the reference value, net income of 36.9 billion yen in FY3/2021
2Q and the right-most red bar shows the net income of 60.4 billion yen in FY3/2022 2Q.
The bars between these two indicate the factors behind the increase. Please be advisedthat (1) through (5) are based on figures before tax. The rightmost red bar shows the
final net income after deducting the tax expenses shown in (6).
Item (1), Business Growth, increased by 13.8 billion yen YOY. This is thanks tobusiness growth of subsidiaries in Europe and the Americas in the “Account Solution”
and the marine container leasing company BIL in the “Logistics”, etc.
Item (2), Extraordinary Income/Loss, increased by 21.4 billion yen YOY. This is thanks
to the sale of strategic shareholdings to replace the portfolio in FY3/2022 1Q and a gainon the recording of negative goodwill of 0.4 billion yen, etc.
Item (3), Credit Costs, increased by 2.4 billion yen YOY. This is due to the posting ofadditional expenses on payment deferrals by some customers in the Aviation business,
etc.
Item (4), Expenses Related to the Business Integration, decreased by 2.5 billion yen
YOY. This is thanks to the absence of due diligence expenses of 5.4 billion yen in total
for the former two companies, etc. posted in FY3/2021 1Q, despite posting of expenses
related to trade name changes and to systems, etc. of 2.8 billion yen.
Item (5), Operating Expenses which excludes Expenses Related to the Business
Integration, increased by 5.2 billion yen YOY. This is due to an increase in expenses
associated with the promotion of business activities primarily in overseas offices and theacquisition cost of 0.7 billion yen of marine container leasing company CAI, etc.
Item (6), Others, increased 6.5 billion yen YOY. This is due to an increase in tax
expenses, etc.
Summing up the items (1) to (6) above, net income for FY3/2022 2Q, increased by 23.5
billion yen YOY to 60.4 billion yen.
Please turn to Page 6.

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I would l ik e to expla in t he Calculation of “Goodw ill” A ssoc ia ted w it hBu sine ss Integrat ion.
When showing the waterfall chart previously, I mentioned that we recorded 0.4 billion
yen in extraordinary income as negative goodwill because of the business integration.
This is because the “net amount of HC’s assets and liabilities evaluated at market
value” exceeded the purchase price of 398.2 billion yen, which was calculated based on
the number of shares issued for the integration and its market value, etc. at the time of
the business integration on April 1st, 2021.

As of the end of FY3/2022 1Q, the “net amount of HC’s assets and liabilities evaluatedat market value” was nearly the same as the “purchase price” based on provisional
calculations. Therefore, we did not recognize either “goodwill” or “negative goodwill”. In
FY3/2022 2Q, the evaluation of assets and liabilities at market value and the allocation of
the purchase price were completed and the calculations were finalized as above.
Please turn to page 8.

67This slide which was disclosed at FY3/2022 1Q financial results, shows our five focusedbusiness domains, which form Mitsubishi HC Capital’s pillars of sustainable growth, andthe segments that cover these domains.
On the next, page 9 shows an overview of increase and decrease in Segment Profit
and Assets.

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The horizontal bar graph in the upper row shows segment profit in FY3/2022 2Q, andFY3/2021 2Q as a reference value. The table in the lower row shows the overview ofsegment profit, segment assets, and major factors for changes in segment profit.
From the next page onward, we would like to give additional information on segments
where there was significant change in these amounts.
Please turn to page 10.

9In the “Customer Business”, segment profit increased by 17.8 billion yen YOY to 27.6
billion yen. This was mainly thanks to the performance improvement of a U.S. vendor
finance company ENGS and an increase in gain on sales of strategic shareholdings,
which was posted in FY3/2022 1Q aiming to replace the portfolio.

10In the “Account Solution” on page 11, segment profit increased by 4.9 billion yen YOY
to 13.4 billion yen, mainly thanks to business growth of subsidiaries in Europe and theAmericas and a decrease in credit costs including ASEAN region.
Especially in Europe, new transactions volume increased thanks to the economic
recovery. In addition, an increase in the gain on sales of vehicles for which the leaseterm finished, responding to the increasing demand for used vehicles, because theslump in new car production caused by the shortage of semiconductor globally.
Please turn to page 13.

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In the “Real Estate”, segment profit decreased by 7.4 billion yen YOY to 7.1 billion yen
due to a reactional fall in sales gains and absence of compensation received inassociation with the redevelopment project, both recorded in FY3/2021 2Q. Regarding tosales gains of real estate in FY3/2021, there were multiple large sales, and its gains
were higher than usual.
This business is expected to grow in 2nd half relative to the 1st half thanks to an increasein the sales gains.
Please turn to page 14.

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In the “Environment & Renewable Energy”, segment profit decrease by 0.3 billion yen
YOY to 3.2 billion yen, due to the reactionary fall in sales gains related to the solar power
generation business recorded in FY3/2021 2Q, although the electricity sales revenue
increased as power plants.
Segment profit for this business is expected to grow in 2nd half relative to the 1st half,
thanks to an expectation for multiple sales of assets, and an increase in the electricity
sales revenue of wind power, because there is a tendency that more electricity is
generated when wind conditions are favorable in 2 nd half.

Furthermore, as Environment & Energy is one of our focused business domains. We
achieved diversifying the portfolio, which is balanced the solar and wind powers, thanks
to the business integration.
Please see the lower right bar chart. We are establishing our strong presence at theforefront in the renewable energy industry; the output of projects that have begun
operations is 1.2 gigawatts (GW) in FY3/2022 2Q. What’s more, the total output when we
combine with projects that have executed the contracts but have not begun operation isapproximately 1.5 GW.
We would contribute to achieving a Decarbonized Society by developing this businessthat is based on the ideal mutually beneficial relationships.
Please turn to page 15.

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In the “Aviation”, gross profit increased 5.1 billion yen YOY to reach 19.8 billion yen,and segment profit increased 0.9 billion yen YOY to reach 4.2 billion yen. This is mainly
thanks to posting of gains on valuation of certain receivables from bankrupt debtors.
Regarding the gains on valuation of certain receivables from bankrupt debtors, we
received offers from multiple the U.S. financial institutions and funds to buy thesereceivables out. We performed fair market valuations in accordance with US GAAP
standards and posted the valuations.
We are completing the sale of these receivables in the U.S. 3rd quarter at prices above
valuation so that these bankruptcy receivables could be collected swiftly and definitively.
According to the IATA (International Air Transport Association), passenger demand is
still in the process of recovery, and they estimate that many of the airlines will continue torun a loss before returning to profitability in 2023 or after. Such factors indicate to us thatthe business environment will continue to be harsh.
Our aircraft leasing business has a highly liquid portfolio centering on relatively new andnext-generation narrow-body aircraft, and the rate of aircraft’s off leasing as of the end of
September, 2021 is low as before. Currently, an increase in leasing income through theincrease in new deals is also expected. However, we will be prudent when proceedingwith our business in aviation as there is still uncertainly in the macro environment.
Please turn to page 16.

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In the “Logistics”, segment profit increased by 1.7 billion yen YOY to 2.0 billion yen,
thanks to increase in operating assets, an operating rate of the owned assets andearnings of equity-method investees in the auto leasing business.
Please refer to the Appendix onward page 29, from pages 30 to 40 give a breakdown ofsegment assets and business outline for each business segment.
Page 41 onward gives information for reference including various figures.
That is all for my (Director Inoue) presentation.

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I (President & CEO Yanai) would like to explain III. PMI and Management Plan whichstarts from page 18.
Please turn to page 19.

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PMI has been progressing more smoothly than initially expected.
The services and systems of Hitachi Group utilized in HC before the businessintegration have continued the utilization for a limited duration after the integration interms of business continuity. The alternatives of these services and systems have beenpromoted smoothly and will have completed until the end of this fiscal year.
The change in the trade names of our group companies will have completed by the endof this fiscal year as well. Thanks to the lively discussions in each working groupbetween sales divisions, and a range of company-wide communication initiatives such as
the direct dialogue between employees and management, we will move into the phase ofcreating synergy through implementing the synergy initiatives established sequentially.
Following the table on this slide, I would like to explain the PMI progress in the fields ofManagement Resource Synergy, Sales Synergy and Investment Synergy.
First, to create Management Resource Synergy, we have started the organizational
restructuring of Corporate Center, and operational optimization by organizing operational
processes and system infrastructure.
Next, for the creation of Sales Synergy, there are lively discussions in each working
group such as Domestic Sales Working Group and Overseas Working Group. The
specific contracts, potential proposals and many ideas for creating of sales synergy havebeen in bloom, for example putting HC’s business functions such as corporate card, nonlife insurance and trust to deliver customers of MUL, and deliver HC's customers
operating leasing schemes cultivated by MUL.
Furthermore, we are creating systems, such as evaluation systems, to expand businesssynergy.
Lastly, to achieve Investment Synergy, as I explained earlier, we have entered into a
definitive agreement for acquiring CAI International, a US leading marine container
leasing company. We have also established M&A Advisory Group for the purposes ofenhancing the promotional framework for strategic investment deals.
I would like to explain more details on the acquisition of CAI in a later slide.
Please turn to page 20.

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In this slide, we mainly listed recent releases which were the topics in which we haveengaged in the focused business domains.
We contribute to a prosperous and sustainable future by creating social value throughdeveloping advanced asset business in focused business domains.
Please turn to page 21.

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As we announced in June 2021, MHC has entered into a definitive agreement for
acquiring CAI International, a US leading marine container leasing company, with thegoal to strengthen the marine container leasing business which expects stable demand
for leasing and high profitability. We are currently in the final stages of the acquisition
process.
From the next page onward, I would like to explain the milestones for establishing theManagement Plan.
Please turn to page 22.

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As is shown on the conceptual pyramid diagram on the left side of this slide, in order toachieve “our mission” and “our vision”, we will establish short- and medium-term“management plan” which are composed of business strategies and management basestrategies.
Our new Medium-term Management Plan, which is scheduled to launch in April 2023,
will be designed to achieve “our mission” and “our vision,” and to connect with our“Materiality.”
Please turn to page 23.

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We have been establishing the management plan along with the timeline shown on thisslide.
As of the 2nd half of FY3/2022, in parallel with the analysis of the external environmentand discussions for identifying our “Materiality,” we are establishing action principles, anddiscussing business strategies in 2nd half of FY3/2022, FY3/2023 and the next term atbusiness strategy meeting.
Based on these activities, we are planning to release the “medium- and long-term
management direction” for achieving our mission and our vision together with theannouncement of FY3/2022 financial results scheduled in May, 2022 prior to the releaseof the new Medium-term Management Plan.
Regarding the medium- and long-term management direction, we would like to consider
what we aspire to be from both qualitative and quantitative aspects for the aspiration of
MHC Group in 2030, and we would like to explain the medium- and long-term direction
among the consideration.
For the qualitative aspect, we will set out the Basic Management Policy of the MHCGroup by showing the action principles as well as our mission and our vision alreadyreleased, etc.
As for the quantitative aspect, we will explain the goal based on the discussion such as
the target KPIs for 2030, and the consideration what we aspire to be through the new
Medium-term Management Plan.
After that, during FY3/2023, we will release the new Medium-term Management Plan to
be started from April, 2023.
Please turn to page 24.

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As the first step in the Management Plan formulation process, the megatrends, which is
to be a prerequisite for giving context to the discussions, has already been analyzed.
We are ascertaining the needs of stakeholders that arise from the five megatrends of
Demographics, Climate Change, Geopolitics and Economy, Wealth Disparity, andExpanding Technologies, as major trends that are considered to have significant impact
on companies in the medium- to long-term.
Based on this analysis, we will be discussing the management plan.

On page 25, I would like to explain the progress of Our Efforts toward Sustainability.

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MHC established the Sustainability Committee in April this year as an advisory to the
Executive Committee for the purpose of leading and promoting management that is
mindful of sustainability. In the first half, we held the first committee meeting in May andthe second one in September, and have discussed the identification of Materiality, which
are key management issues.
This Materiality is closely connected with our mission and our vision, which we have
explained today. We are planning to release the Materiality that has been identified by
the end of this year.

In addition, we have announced that we support for the TCFD; the Task Force on
Climate-related Financial Disclosures. We will further endeavor to communicate anddisclose information in line with the TCFD framework.
Furthermore, in the Board of Directors meeting held today, we resolved at its Board of
Directors Meeting held today to select to list on the Prime Market in the Tokyo Stock
Exchange which will be launched in April, 2022. Going forward, we will adhere to theprescribed procedures stipulated in the Tokyo Stock Exchange application schedule.
That concludes the explanation on PMI and Management Plan.
Pages 26 and after will explain the Forecast for FY3/2022.
Please turn to page 27.

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We will retain the Forecast for net income attributable to owners of the parent for
FY3/2022, unchanged from 95.0 billion yen, which was announced in May, because
there is uncertainty in future external environment.
Therefore, we will return profits to shareholders by distributing dividends and thedividend per share for FY3/2022 is estimated to be 26.00 yen, up 0.50 yen from that for
FY3/2021, as previously announced. We plan to distribute the FY3/2022 interim dividendof 13.00 yen per share, up 0.25 yen YOY.
That is all from my(President & CEO Yanai) side. As I stated at the beginning, our PMI
has been executed more smoothly than expected, and I feel confident about theachievement of early synergy creation.
Mitsubishi HC Capital will strive to meet the expectations of stakeholders. We truly
appreciate your continuous support. Thank you very much.

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