Consolidated Financial Highlights for the Second Quarter Ended September 30, 2023
[Based on J-GAAP]
November 10, 2023
Company Name:
Mitsubishi HC Capital Inc.
Stock Exchange Listed on: Tokyo (Prime Market), Nagoya (Premier Market)
Company Code:8593
URL: https://www.mitsubishi-hc-capital.com/english/
Representative:
Taiju Hisai, Representative Director, President & CEO
For Inquiry:
Haruhiko Sato, Director, Managing Executive Officer TEL: +81-3-6865-3002
Scheduled Date of Submission of Financial Reports:
November 10, 2023
Scheduled Commencement of Dividend Payment:
December 11, 2023
Supplemental Material for Financial Results:
Available
Holding of Financial Results Meeting:
Scheduled (for Institutional Investors and Analysts)(Amounts of less than one million yen are rounded down)
1. Consolidated Results for the Second Quarter Ended September 30, 2023 (April 1, 2023 – September 30, 2023)(1) Consolidated Operating Results (Cumulative)(% represents the change from the same period in the previous fiscal year)

Revenues

Operating income

Net income attributableto owners of the parent

Recurring income

For the six months ended(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

September 30, 2023

942,519(0.2)

64,414(13.1)

66,915(11.7)

52,739(16.5)

September 30, 2022

944,732

13.4

74,13927.5

75,771

28.2

63,176

4.5

For the six months ended September 30, 2023:
For the six months ended September 30, 2022:¥170,035 million¥249,371 million(31.8%)
235.6%(Note) Comprehensive income:Dilutedearnings per share

Earnings per share

For the six months ended

(Yen)

(Yen)

September 30, 2023

36.73

36.63

September 30, 2022

44.00

43.87

(2) Consolidated Financial Position
Total assets

As of
September 30, 2023

Total equity(Millions of yen)

(Millions of yen)%

11,291,007

1,686,108

14.7

1,551,029

14.3

10,726,196

March 31, 2023
(Reference) Shareholders’ equity:

Equity ratio

As of September 30, 2023:
As of March 31, 2023:¥1,661,315 million¥1,528,773 million

2. Dividends
Dividends per share
1st Quarter end

For the fiscal year

2nd Quarter end

3rd Quarter end

Fiscal year - end

Annual

(Yen)

(Yen)

(Yen)

(Yen)

(Yen)

ended March 31, 2023

－

15.00

－

18.00

33.00

ending March 31, 2024

－

18.00
－

19.00

37.00

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

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

Earnings per share(Millions of yen)

%

(Yen)

120,000

3.2

83.62

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

1

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

Yes

Excluded: Japan Infrastructure Initiative Company Limited(2) Application of accounting treatments specific to the preparation of the quarterly
consolidated financial statements:
Yes(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to the
Quarterly Consolidated Financial Statements (Application of accounting treatments specific to the preparationof the quarterly consolidated financial statements)” on page 16.
(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions(ⅰ) Changes in accounting policies with revision of accounting standards, etc.

:

Yes(ⅱ) Changes in accounting policies other than (ⅰ) above:No(ⅲ) Changes in accounting estimates:No(ⅳ) Restatement of revisions:
No(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to
the Quarterly Consolidated Financial Statements (Changes in accounting policies)” on page 16.
(4) Number of outstanding shares (common shares)(ⅰ) Number of outstanding
shares (including
treasury shares)

As of September 30, 2023 1,466,912,244 shares

As of March 31, 2023

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

As of September 30, 2023

32,610,280 shares

As of March 31, 2023

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

For the six months ended
1,435,700,572 shares
September 30, 2023

For the six months ended
1,435,989,160 shares
September 30, 2022

(Note) During the three months ended September 30, 2023, Mitsubishi HC Capital Inc. (“Company”) introduced
a performance-based stock compensation plan. The number of treasury shares includes the Company’s
shares held by a trust under the plan (2,702,173 shares as of September 30, 2023). Also, the number oftreasury shares excluded in calculating the weighted average number of shares outstanding includes theCompany’s shares held by a trust under the plan (987,816 shares as of September 30, 2023).

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

2

Contents
1. Qualitative Information concerning Financial Results for the Second Quarter Ended September 30, 2023

4(1) Summary of Operating Results

4(2) Summary of Consolidated Financial Position

9(3) Explanation on Future Forecast Information including Consolidated Financial Forecast

9

2. Quarterly Consolidated Financial Statements and Major Notes

10(1) Quarterly Consolidated Balance Sheets

10(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income

12

Quarterly Consolidated Statements of Income
For the six months ended September 30, 2023 and 2022

12

Quarterly Consolidated Statements of Comprehensive Income
For the six months ended September 30, 2023 and 2022
(3) Notes to the Quarterly Consolidated Financial Statements

13
14(Segment information)

14(Notes concerning going concern assumption)

16(Notes concerning significant changes in shareholders’ equity)

16(Application of accounting treatments specific to the preparation of the quarterly consolidated
financial statements)

16(Changes in accounting policies)

16(Additional information)

16(Significant subsequent events)

173

1. Qualitative Information concerning Financial Results for the Second Quarter Ended September 30, 2023
(1) Summary of Operating Results1) Overview of Financial Results, etc.
Quarterly net income attributable to owners of the parent decreased by ¥10.4 billion, or 16.5% year on year, to¥52.7 billion.
・Quarterly net income attributable to owners of the parent for the six months ended September 30, 2023
decreased by ¥10.4 billion, or 16.5% year on year, to ¥52.7 billion mainly due to the losses in U.S. real estate
projects in the Real Estate segment and the impairment losses in the Environment & Energy segment, etc.,
which were not included in the initial plan, while the Aviation segment has been steadily recovering and marine
container leasing business in the Logistics segment favorably progressed compared with the initial plan.
・On the other hand, new transactions volume increased by 134.9 billion yen (10.6%) YoY to 1,413.3 billion yen,
thanks to an increase in new transactions in the Aviation and Customer Solutions segments, etc. Segment
assets also increased by 587.3 billion yen (6.1%) to 10,220.3 billion yen compared with the fiscal year ended
March 31, 2023.
Financial forecast for the year ending March 31, 2024 (net income attributable to owners of the parent of ¥120
billion) remains unchanged.
・The progress made toward the forecast for the fiscal year ending March 31, 2024 (net income attributable toowners of the parent of ¥120.0 billion) during the six months ended September 30, 2023 was 43.9%.
・Despite the progress, the consolidated financial forecast remains unchanged, because the profits in the
Aviation segment are planned to be weighted toward the second half and we expect marine container leasing
business continues to progress favorably compared with the initial plan, and gains on sales of owned assets
will exceed the initial plan.
Steadily implementing each initiative set forth in the Medium-term Management Plan (“2025 MTMP”) toward
Our 10-year Vision.
・ We have been reorganizing our businesses and Group companies in order to reallocate management
resources strategically and optimize business operation.
・We created new businesses in the areas of EVs and decarbonization solutions, which are key themes acrosssegments.
・As a part of our frameworks to promote transformation, we have established the Innovation Investment Fund,amounting to a total of ¥10.0 billion. We also launched the Zero-Gravity Venture Lab (called “ZERO-GRA”),
an internal startup program.
(Billions of yen)
For the six months
For the six months
ended September 30, 2022 ended September 30, 2023

Change (%)

Revenues

944.7

942.5

(0.2)

Gross profit

177.9

175.0

(1.6)

Operating income

74.1

64.4

(13.1)

Recurring income

75.7

66.9

(11.7)

Quarterly net income
attributable to ownersof the parent

63.1

52.7

(16.5)

42) Major topics
Formulation and announcement of the Medium-term Management Plan for FY2023 - FY2025 (“2025 MTMP”)
The Company formulated the Medium-term Management Plan covering the three-year period from the fiscal year
ending March 31, 2024 to the fiscal year ending March 31, 2026 (the “2025 MTMP”), which was announced in May
2023. The 2025 MTMP is positioned as the “hop” plan of our three Medium-term Management Plans (“hop,” “step,”and “jump”) toward Our 10-year Vision (Together we innovate, challenge and explore the frontiers of the future).
We set the financial targets at FY2025 (the fiscal year ending March 31, 2026), the final fiscal year of the 2025 MTMP,
as net income attributable to owners of the parent of ¥160.0 billion, ROA of approximately 1.5%, ROE ofapproximately 10%, and dividend payout ratio during the 2025 MTMP of 40% or higher. Net income attributable toowners of the parent is used in the calculations of ROA and ROE.
Please refer to “Medium-term Management Plan for FY2023 - FY2025 (“2025 MTMP”)” posted on the Company’s
website for more details of the 2025 MTMP.
(Medium-term Management Plan Page URL on our website)
https://www.mitsubishi-hc-capital.com/english/investors/managementplan/index.html

Major business topics
Apr. 2023:

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

May 2023:

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

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

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

Aug. 2023:  Announced to start business operation in Silicon Valley in the U.S.A. to strengthen the businessintelligence function as part of the innovation initiatives.
Sep. 2023:  Mitsubishi HC Capital Energy Inc. and Mitsubishi Auto Leasing Corporation launched an
integrated service necessary for the introduction and operation of EVs, including the supply of
EVs and charging infrastructure as well as renewable energy as the power source.
 Announced the business alliance with Horizon Ocean Management, Ltd. with the aim ofstabilizing and improving efficiency of the O&M service (maintenance, inspection, and repair) in
the offshore wind power generation business.
 Announced the capital and business alliance with ZERO with the aim of contributing to the
reduction of food losses and CO2 emissions in Japan by promoting the introduction of an
unmanned vending machine (“fuubo,” a food loss reduction box).
5

Oct. 2023:

 Announced the capital and business alliance with Credit Engine Group, Inc. with the aim ofdeveloping and providing new services toward the digital transformation of value chain in theleasing industry.

Nov. 2023:

 Announced the merger of MHC Reuse Services Corporation and MHC Eco-Business Co., Ltd.
providing reuse and recycling services for leased property upon expiration of the lease term(scheduled to be merged in April 2024)
 Announced the business alliance with Lenovo Japan LLC and Mitsubishi UFJ Trust and Banking
Corporation with an aim to provide a comprehensive package to support startups, including PC
subscription service
 As a part of the Business Portfolio Transformation toward Our 10-year Vision, we announced totransfer shares of our group company, DFL Lease Co., Ltd. and Shutoken Leasing Co., Ltd.
(scheduled to come into effect in January 2024).

3) Operating results by reportable segments
Operating results by reportable segments were as follows.
Following the organizational changes effective April 1, 2023, the name of the reportable segment“Environment, Energy & Infrastructure” was changed to “Environment & Energy” from April 1, 2023.
(For details of new reportable segments, please refer to “2. Quarterly Consolidated Financial Statements andMajor Notes, (3) Notes to the Quarterly Consolidated Financial Statements (Segment information)” on page 14.)(Customer Solutions)
Segment profit decreased by ¥5.4 billion, or 26.3% year on year, to ¥15.2 billion mainly due to an increasein credit costs and absences of large gains on sales related to real estate leasing and insurance claim income
for a certain deal, both recorded in the six months ended September 30, 2022.
(Global Business)
Segment profit decreased by ¥13.4 billion, or 56.8% year on year, to ¥10.2 billion mainly due to an absenceof gains on revaluation of securities recorded at a European subsidiary in the six months ended September 30,
2022, an increase in operational expenses in subsidiaries mainly in Europe and the Americas, and in credit costsin the Americas in line with the worsening market condition, despite the positive effects by adjusting fiscal period
associated with the reorganization of subsidiaries in the Americas.
Effective April 1, 2023, we executed the business integration of three subsidiaries in the Americas having a
different fiscal year-end. While the surviving company’s fiscal year-end is March 31, the two merged companies’
fiscal year-end was December 31. Accordingly, results of the two merged companies for the period from January
1, 2023 to March 31, 2023 are also included in the consolidation for the six months ended September 30, 2023,
resulting in a year-on-year increase in profit.
(Environment & Energy)
Segment profit decreased by ¥2.7 billion, or 51.1% year on year, to ¥2.6 billion mainly due to recording of
the impairment losses on a solar power generation project and an absence of gains on sales of investments incertain projects recorded in the six months ended September 30, 2022 despite a decrease in tax expenses asa result of recording deferred tax assets in relation to the absorption-type merger of Japan Infrastructure Initiative
Company Limited.
(Aviation)
Segment profit increased by ¥10.0 billion year on year to ¥7.3 billion mainly thanks to an increase in leasing
revenue, reversal of large credit costs, an absence of the impairment losses recorded in the six months ended
September 30, 2022 and a decrease in exchange revaluation losses related to foreign currency-denominatedborrowings in aircraft leasing transactions that our head office is engaged in.
(Logistics)
Segment profit increased by ¥0.7 billion, or 8.2% year on year, to ¥9.8 billion mainly thanks to an increasein gains on sales of owned assets (mainly shipping).
6

(Real Estate)
Segment profit increased by ¥1.3 billion, or 24.5% year on year, to ¥6.9 billion mainly thanks to gains on
step acquisitions recorded in relation to making CenterPoint Development Inc. our wholly-owned subsidiary, anabsence of large credit costs recorded in the six months ended September 30, 2022, and an increase in gains
on sales despite the negative effects due to recording of the losses in U.S. projects against a backdrop of theworsening real estate market and the deconsolidation of Diamond Asset Finance Company Limited.
(Mobility)
Segment profit decreased by ¥0.7 billion, or 31.8% year on year, to ¥1.6 billion mainly due to the negative
effects by the deconsolidation of Mitsubishi HC Capital Auto Lease Corporation.

7

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

Reportable segments

For the six months
For the six months
ended September 30, 2022 ended September 30, 2023

Change (%)

Customer Solutions

20.6

15.2

(26.3)

Global Business

23.6

10.2

(56.8)

Environment & Energy

5.4

2.6

(51.1)

Aviation

(2.7)

7.3

－

Logistics

9.1

9.8

8.2

Real Estate

5.5

6.9

24.5

Mobility

2.3

1.6(31.8)

Adjustments

(0.8)

(1.0)

－

Total

63.1

52.7

(16.5)(Note) 1. Adjustments of segment profit (losses) consist mostly of adjustments of company-wide expenses included in selling,
general and administrative expenses not allocated to any reportable segments, and profit adjustments recorded bypurchase method associated with the merger with Hitachi Capital Corporation.
2. Segment profit (losses) is equal to net income attributable to owners of the parent on the quarterly consolidated
statements of income.

Segment assets by reportable segments

Reportable segments(Billions of yen)
Change (%)

As of March 31, 2023

As of September 30, 2023

Customer Solutions

3,227.7

3,188.8(1.2)

Global Business

2,644.2

2,963.3

12.1

Environment & Energy

433.2

430.7

(0.6)

Aviation

1,640.2

1,892.0

15.4

Logistics

1,092.9

1,145.0

4.8

Real Estate

447.2

504.1

12.7

Mobility

41.4

43.1

4.1

Adjustments

105.8

52.9

(49.9)

Total

9,632.9

10,220.3

6.1(Note) 1. Segment assets include operating assets, equity-method investments, goodwill, and investment securities.
2. Adjustments of segment assets consist mostly of goodwill recognized when Diamond Lease Company Limited and
UFJ Central Leasing Co., Ltd. merged and became Mitsubishi UFJ Lease & Finance Company Limited in 2007 andother segment assets such as company-wide investment securities, which are not attributable to any reportablesegments, and offsets in transactions between segments.

8(2) Summary of Consolidated Financial Position
Compared to the figures as of March 31, 2023, total assets as of September 30, 2023 increased by ¥564.8
billion to ¥11,291.0 billion, total equity increased by ¥135.0 billion to ¥1,686.1 billion, and interest-bearing debt
(excluding lease obligations) increased by ¥420.4 billion to ¥8,656.5 billion.

(3) Explanation on Future Forecast Information including Consolidated Financial Forecast
The progress made toward the consolidated financial forecast announced on May 15, 2023 (net income
attributable to owners of the parent of ¥120.0 billion) during the six months ended September 30, 2023 was
43.9%, mainly due to the losses in U.S. real estate projects in the Real Estate segment and the impairment
losses in the Environment & Energy segment, which were not included in the initial plan.
The consolidated financial forecast for the year ending March 31, 2024 remains unchanged because theprofits in the Aviation segment are planned to be weighted toward the second half and we expect marine
container leasing business continues to progress favorably compared with the initial plan, and gains on salesof owned assets will exceed the initial plan.

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

10(Millions of yen)
For the six months ended
September 30, 2023
(As of September 30, 2023)

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

517,414226,737
3,294,719
1,825,028
195,427
74,145
8,341
51,460178,129(31,247)
6,340,156

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

3,755,941
82,006
3,837,948
218,038
18,781
4,074,768

23,197

16,92291,497133,034
224,532
247,730

108,120
134,459
242,579
259,502400,113
99,912
152,065(68,806)
583,284
4,459,922

412,402105,735
161,058(66,862)
612,332
4,946,603

4,603
4,603
10,726,196

4,248
4,248
11,291,007

(Millions of yen)
For the six months ended
September 30, 2023
(As of September 30, 2023)

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Commercial papers
Current maturities of loans from thesecuritizations of the minimum future rentals
on lease contracts
Income taxes payable
Deferred profit on installment sales
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other current liabilities
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Loans from the securitizations of the minimum
future rentals on lease contracts, less current
maturities
Provision for retirement benefits for directors(and other officers)
Provision for share-based remuneration for
directors (and other officers)
Retirement benefit liability
Reserve for contract of insurance
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total equity
Total liabilities and equity

11

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

142,873
560,986
537,809936,332
747,283

246,640

229,195

9,381
9,648
15,89014,2999,171
11,338

2,255

1,556

272,437
3,512,353

262,867
3,453,714

1,582,848
3,253,535

1,764,929
3,533,976

357,662

346,032

110

112

-

260

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

6,476
12,740486,655
6,151,184
9,604,899

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

33,196546,299
729,915(20,975)
1,288,435

14,817

17,60553,051
186,545
1,985

62,771
290,723
1,780

256,400

372,880

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

1,915
22,876
1,686,108
11,291,007

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

Revenues
Cost of revenues
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Other(Millions of yen)
For the six months ended
For the six months ended
September 30, 2022
September 30, 2023
(April 1, 2022 – September 30, 2022) (April 1, 2023 – September 30, 2023)
944,732
942,519
766,790
767,485
177,941
175,034
103,802110,619
74,13964,414

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Recurring income
Extraordinary income
Gain on sale of investment securities
Gain on step acquisitions
Gain on valuation of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries andassociates
Total extraordinary losses
Income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

12

513
923

2,403
1,546

5,095

5,028

5,445
11,977

3,969
12,947

3,074
5,771
1,499
10,34575,771

5,740
2,975
1,731
10,446
66,915

1,876
7,183
9,060

2,477
4,822
7,299

370

238
-

-

129

370
84,461
20,79563,666489
63,176368
73,847
20,83653,011
271
52,739(Quarterly Consolidated Statements of Comprehensive Income)(For the six months ended September 30, 2023 and 2022)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests(Millions of yen)
For the six months ended
For the six months ended
September 30, 2022
September 30, 2023
(April 1, 2022 – September 30, 2022) (April 1, 2023 – September 30, 2023)
63,66653,01113(1,768)2,865

43,463
130,418
1,327

4,366
102,891(184)

12,264

7,084

185,705
249,371

117,024
170,035

247,706

169,219

1,665

816

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

Customer Solutions

Global Business

Environment & Energy

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

Aviation

Aircraft leasing business, and aircraft engine leasing business

Logistics

Marine container leasing business, and railway freight car leasing business

Real Estate

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

Mobility

Auto leasing business and supplementary services

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

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

Reportable segments

Customer
Solutions

Segment profit(losses)

20,655GlobalEnvironment &Business
EnergyAviation

Logistics

Real Estate

Mobility

23,649(2,742)

9,132

5,554

2,349

5,412

(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note) 1
statements
of income(Note) 2(834)

63,176(Note)1. Adjustments of segment profit (losses) consist mostly of adjustments of company-wide expenses included in selling,
general and administrative expenses not allocated to any reportable segments. It also includes profit adjustments of¥1,091 million related to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit (losses) is equal to net income attributable to owners of the parent on the quarterly consolidated
statements of income.

For the six months ended September 30, 2023 (April 1, 2023 to September 30, 2023)
Reportable segments

Customer
Solutions

Segment profit

15,217

GlobalEnvironment &Business
Energy10,206

2,648

Aviation

Logistics

Real Estate

Mobility

7,312

9,883

6,916

1,601

(Millions of yen)Amountrecorded inquarterly
Adjustments
consolidated(Note) 1
statements
of income(Note) 2(1,046)52,739(Note)1. Adjustments of segment profit consist mostly of adjustments of company-wide expenses included in selling, general andadministrative expenses not allocated to any reportable segments. It also includes profit adjustments of ¥754 million
related to the merger with Hitachi Capital Corporation under the purchase method.
2. Segment profit is equal to net income attributable to owners of the parent on the quarterly consolidated statements ofincome.

3. Information on impairment losses on non-current assets or goodwill by reportable segments
For the six months ended September 30, 2022 (April 1, 2022 to September 30, 2022)(Significant impairment losses on non-current assets)
Aviation segment recorded the impairment losses of ¥4,075 million on leased assets.
(Significant changes in goodwill)
Not applicable
For the six months ended September 30, 2023 (April 1, 2023 to September 30, 2023)(Significant impairment losses on non-current assets)
Environment & Energy segment recorded the impairment losses of ¥5,816 million mainly on otheroperating assets.

(Significant changes in goodwill)
Real Estate segment recorded goodwill of ¥13,207 million associated with the acquisition of all sharesof CenterPoint Development Inc. The amount of goodwill was finalized during the three months ended
September 30, 2023, and there was no adjustment to the amount.

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(Notes concerning going concern assumption)
Not applicable(Notes concerning significant changes in shareholders’ equity)
Not applicable(Application of accounting treatments specific to the preparation of the quarterly consolidated financial statements)
Tax expenses of the Company and its certain consolidated subsidiaries were calculated through multiplying
income before income taxes for the six months ended September 30, 2023 by the reasonably estimated effective
tax rate (after tax effect accounting) applicable to income before income taxes for the year ending March 31, 2024.
(Changes in accounting policies)(Application of Accounting Standards Update (ASU) 2016-13 “Financial Instruments – Credit Losses”)
Certain overseas consolidated subsidiaries applied ASU 2016-13 “Financial Instruments – Credit Losses”
on April 1, 2023. As a result, allowance for doubtful accounts is recorded for financial assets in these overseas
consolidated subsidiaries by estimating the expected credit losses over the remaining life of the financial assets
at initial recognition.
As a result of this change, retained earnings in the quarterly consolidated financial statements as of April 1,
2023 decreased by ¥7,957 million.
(Additional information)(Performance-based stock compensation plan)
During the three months ended September 30, 2023, the Company introduced a performance-based stockcompensation plan as an incentive plan for the Company’s directors excluding those who are Audit &Supervisory Committee members (excluding non-executive directors and non-residents in Japan; hereinafter
the same applies) and executive officers, etc. (excluding non-residents in Japan; hereinafter directors andexecutive officers are collectively referred to as “Directors, etc.”)(1) Overview of the plan
The plan is a stock compensation plan under which the Company delivers and pays (“deliver”) the
Company’s shares and cash equivalent to the conversion value of the Company’s shares (“the Company
Shares, etc.”) based on the attainment of the targeted performance indicators set out in the Company’s
MTMP to the Company’s Directors, etc. The Company entrusts money to a trust bank in advance to acquire
the Company’s shares to be delivered, and the trust bank uses the cash to acquire the Company’s shares.
Also, points are granted to Directors, etc. based on the share delivery rules established separately, and theCompany Shares, etc. are delivered to Directors, etc. based on the points.
(2) The Company’s shares remaining in the trust
The Company’s shares remaining in the trust are recorded as treasury shares in Equity at the carrying
amount at the trust. The carrying amount and the number of shares of these treasury shares as of
September 30, 2023 are ¥2,335 million and 2,702 thousand shares, respectively.

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(Significant subsequent events)(Transfer of shares of DFL Lease Co., Ltd. and Shutoken Leasing Co., Ltd.)On November 8, 2023, the Company decided to transfer all shares of its subsidiaries, DFL Lease Co., Ltd.
(“DFL Lease”) and Shutoken Leasing Co., Ltd. ("Shutoken Leasing”) (“both companies”) (the “Share Transfer”),
and executed a share transfer agreement (the “Share Transfer Agreement”) on the same date.
1.

Reason of the share transfer
The Company made the both companies its consolidated subsidiaries in 2004, and has been providing
various financing solution mainly to the customers of Resona group through the both companies. The bothcompanies became the equity-method affiliated companies of Resona Holdings, Inc. (“Resona HD") in July
2018, and with collaborating with Resona HD, the both companies have been providing diverse service
solution held by the Company group to Resona group.
The Company made a decision that it will be meaningful for the both companies to encourage further
collaboration with Resona HD to further extend the business of both companies by utilizing Resona group’s
customer base and network and executed the Share Transfer Agreement.
The Company group has launched the “Medium-term Management Plan for FY2023 - FY2025” and has
undertaken the Business Portfolio Transformation including the strategic allocation of management
resources and optimization of business process within its group toward Our 10-year Vision, and this Share
Transfer is also conducted as a part of the transformation.

2.

Name of the transferee
Resona Holdings, Inc.

3.

Schedule(1) Execution of the Share Transfer Agreement: November 8, 2023
(2) Implementation of the Share Transfer: January 4, 2024 (to be determined)

4.

Overview of the subsidiaries subject to the Share Transfer(1) Company Name: DFL Lease Co., Ltd.
(2) Line of Business: General leasing business using Resona group as the main distribution channel(3) Transactions with the Company: Business relationship related to loan of funds and provision of systems(1) Company Name: Shutoken Leasing Co., Ltd.
(2) Line of Business: General leasing business using Resona group as the main distribution channel(3) Transactions with the Company: Business relationship related to loan of funds and provision of systems

5.

Number of shares to be transferred, transfer price, and number of shares held before and after the transfer(1)Company name

DFL Lease Co., Ltd.

(2)

Number of shares held
before the transfer
Number of shares to betransferred
Transfer price
Number of shares held
after the transfer

8,550,000 shares(number of voting rights: 8,550,000; voting rights holding ratio: 80.0%)

(3)
(4)
(5)

8,550,000 shares (number of voting rights: 8,550,000)
Approx. 5.4 billion yen*
0 share(number of voting rights: 0; voting rights holding ratio: 0%)* The transfer price above is the amount agreed as the equity value of shares held by the Company and to
be transferred, thus the final transfer price will be determined after a price adjustment, etc. stipulated in the
Share Transfer Agreement. By the date on which the Share Transfer is implemented, DFL Lease plans
to declare a dividend of surplus and the amount of the dividend payable to the Company will be deductedin determining the final transfer price.

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(1)

Company nameShutoken Leasing Co., Ltd.

(2)

Number of shares held
before the transfer
Number of shares to betransferred
Transfer price
Number of shares held
after the transfer

6,586,500 shares(number of voting rights: 6,586,500; voting rights holding ratio: 70.7%)

(3)
(4)
(5)

6,586,500 shares (number of voting rights: 6,586,500)
Approx. 5.7 billion yen*
0 share(number of voting rights: 0; voting rights holding ratio: 0%)* The transfer price above is the amount agreed as the equity value of shares held by the Company and to
be transferred, thus the final transfer price will be determined after a price adjustment, etc. stipulated in the
Share Transfer Agreement. By the date on which the Share Transfer is implemented, Shutoken Leasingplans to declare a dividend of surplus and the amount of the dividend payable to the Company will be
deducted in determining the final transfer price.
6.

Impact on operating results
The impact that the Share Transfer will have on the Company’s consolidated operating results will be
minor.

18