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.
This briefing is held online via Webcast. Thank you for your cooperation.
Today, I will first give the overview of the “Financial Results for the 2nd Quarter of Fiscal
Year Ending March 31, 2023” released earlier today, then Mr. Inoue, Senior Managing
Executive Officer, Head of the Treasury & Accounting Division, will give a summary of
the financial results, the performance of each segment, and so on for the same period.
Afterward, we will answer any questions you may have. Let’s get started.
Please look at “Highlights” on page 4 of the material.

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The upper part describes our consolidated results for 2Q FYE3/2023. Thanks to theprofit contribution from CAI, a marine container leasing company in the U.S. that became
our wholly-owned subsidiary in the previous fiscal year, the business growth ofsubsidiaries in Europe and Americas in the Global Business segment, an increase ingains on sales related to real estate business, and other factors, the net income
increased by 2.6 billion yen, or 4.5% YoY to 63.1billion yen.
The lower part describes the steady progress of the net income against the financial
forecast for FYE3/2023 of 110.0 billion yen, so that the progress rate against the financial
forecast was 57.4% as of the end of 2Q. Despite this progress, we leave the forecast
unchanged due to the growing uncertainties in the external environment, such as thepossible recession mainly in Europe and the U.S.
As you may be aware, the external environment is surrounded by growing uncertainties,
including the ongoing inflation driven by increasing resource prices and other factors, theraising of interest rates in order to control this inflation, and the fragmentation of supply
chains. The impacts on our financial results by these changes in the external
environment have not been visible yet, but we will keep a close eye on the impacts on
our businesses, and manage risks appropriately.
Now, Mr. Inoue, the floor is yours.

4This is Inoue, Senior Managing Executive Officer, Head of the Treasury & Accounting
Division. I extend my gratitude for taking the time to attend our financial results briefing
today.
I will explain Part “II. Financial Results for 2Q FYE3/2023,” “III. Segment Updates,” and“IV. Financial Forecast for FYE3/2023” of the material.
Please look at page 6 of the material.

5I will now explain the financial results.
At the top section of the table, the column “a” shows the results for 2Q FYE3/2022. Right
next to that in column “b” colored in orange are the figures for 2Q FYE3/2023, the results
announced today. Right next to that, columns “c” to “e” show the YoY change, the impact
of fluctuation in exchange rates applied to P/L of overseas subsidiaries, and the YoYchange as a percentage.
First, Gross Profit in row 2 increased by 16.7 billion yen, or 10.4% YoY to 177.9 billion yen.
This is mainly thanks to the profit contribution from CAI, a marine container leasing
company, which we acquired previous fiscal year, the business growth of the subsidiaries
in Europe and Americas, and gains on sales related to real estate business.
Net Income in row 5 increased by 2.6 billion yen, or 4.5% YoY to 63.1 billion yen. This isthanks to a decrease in credit costs in addition to an increase in gross profit, despite theabsence of the large gains on sales of strategic shareholdings, which were recorded
in 2Q FYE3/2022. As a result, the progress against the financial forecast for FYE3/2023 of
110.0 billion yen in net income was 57.4%.
In addition, the positive 3.0 billion yen in the column (d), “Impact of Fluctuation inExchange Rates Applied to P/L of Overseas Subsidiaries”, shows the impact caused by
the weak yen on the period of 2Q for this fiscal year compared to that for previous fiscalyear. However, the all-in impact by the fluctuation of the exchange rates on net income,which are the sum of the positive 3.0 billion yen and the negative approx.
3.1 billion yen caused by revaluation losses related to foreign currency-denominatedborrowings in JOLCO, is a negative approx. 0.1 billion yen, as described in the bubble ofpink color. The yen has been weakening at present, which has a positive impact whenincorporating the results of overseas subsidiaries into the consolidated financial
statements. However, when taking into account the exchange revaluation losses related toJOLCO, the impact of exchange rates on net income is almost neutral.
New Transactions Volume in row 6 increased 131.1 billion yen, or 11.4% YoY, to1.2784 trillion yen, mainly thanks to an increase in new transactions volume in the Global
Business segment, and other factors.
Segment Assets in row 7 increased by 564.8 billion yen, or 6.0% YoY, to 9.9102 trillion
yen, mainly thanks to an increase in the new transactions volume and the impact ofexchange rates due to the weakening yen.

Next, please proceed to page 7.

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I will explain the factors for the change in Net Income Attributable to Owners of theParent using this waterfall chart.
The leftmost bar represents the 60.4 billion yen figure for 2Q FYE3/2022. The rightmost
red bar is the 63.1 billion yen for 2Q FYE3/2023. In the middle are the factors for theincrease and decrease. Please be advised that (1) through (4) are based on figures
before tax, and the final net income is calculated after deducting taxes, etc. shown in (5).
Item (1), Business Growth, shows an increase of 16.4 billion yen YoY. This is thanks tothe profit contribution from CAI, which became a wholly-owned subsidiary in the previous
fiscal year, the business growth of subsidiaries mainly in Europe and Americas in theGlobal Business segment, gains on sales related to real estate business, etc.
Item (2), Credit Costs, resulted in a decrease of 7.2 billion yen YoY. This is thanks todecreases in credit costs in the Global Business and Aviation segments.
Item (3), Operating Expenses¸ resulted in an increase of 6.9 billion yen YoY. This is dueto the consolidation of CAI, an increase in expenses associated with the promotion ofbusiness activities mainly in overseas offices, and other factors.
Item (4), Extraordinary Income/Loss, resulted in a decrease of 18.3 billion yen YoY. Thisis due to the absence of the large gains on sales of strategic shareholdings, despite therecording of gains on revaluation of securities at a European subsidiaries in the Global
Business segment.

Item (5), Others had a positive impact of 4.3 billion yen YoY mainly thanks to decreases
in taxes.
The above has resulted in a net income for 2Q FYE3/2023 of 63.1 billion yen, a YoY
increase of 2.6 billion yen.
Next, please turn to page 9.

78This page shows an overview of each segment.
The horizontal bar graph at the top shows the segment profit for 2Q FYE3/2023 and 2Q
FYE3/2022. The table in the lower half shows the status of segment profit and segment
assets for each segment.
In the subsequent pages, I will provide explanations for each segment.
Please turn to page 10.

9In “Customer Solutions”, segment profit increased by 2.2 billion yen YoY to 20.6 billion
yen. This is thanks to the large gains on sales related to real estate leasing, a decreasein credit costs, and the posting of insurance claim income for a certain deal.
Next, please turn to page11.

10This is the “Global Business” segment.
I would like to remind everyone that the details on this slide are for the Global Businesssegment, and do not include the results of global transactions that belong to othersegments such as Aviation and Logistics.
Now, “Global Business” segment profit decreased 5.7 billion yen YoY to 23.6 billion yen.
This is due to the absence of the large gains on sales of strategic shareholdings posted
in 2Q FYE3/2022 despite factors contributing to profit increase such as the businessgrowth of subsidiaries mainly in Europe and Americas, a decrease in credit costs, theposting of gains on revaluation of securities at a European subsidiary.
As Mr. Yanai, President & CEO, told at the beginning, the risk of recession is growing
mainly in Europe and the U.S. In particular, we are keeping a close eye on the situationin the UK, including the political chaos driven by the successive changes in prime
ministers, and managing risks appropriately.
Next, please turn to page 12.

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In “Environment, Energy & Infrastructure”, segment profit increased 4.2 billion yen YoY
to 5.4 billion yen. This is thanks to an increase in profits from equity-method investments
accompanied with starting commercial operation of a wind power generation project inEurope, sales of equity interests in certain infrastructure projects, and other factors.
Next, please turn to page 13.

12In the “Aviation” segment, gross profit decreased by 8.6 billion yen YoY to 11.2 billion
yen due to the absence of gains on revaluation of certain receivables from bankrupt
debtors recorded in 2Q FYE3/2022, the posting of an impairment loss, and other factors,
despite the recovery trend in the business, such as an increase in lease revenue.
A segment loss of 2.7 billion yen was recorded due to the posting of exchange
revaluation losses on foreign currency-denominated borrowings in JOLCO transactions,despite a decrease in credit costs.
Otherwise, the aircraft off-leasing ratio has remained low.
Next, please turn to page 14.

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In “Logistics”, segment profit increased by 8.2 billion yen YoY to 9.1 billion yen. This isthanks to the steady performance of our marine container leasing business, such as theprofit contribution from CAI and the steady business growth of BIL.
As we announced in October, we resolved to merge CAI and BIL as a reorganization ofgroup companies to strengthen the competitiveness of the marine container leasing
business.
Jumping ahead, please have a look at page 22 of the material.

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In “Real Estate”, segment profit increased by 1.6 billion yen YoY to 5.5 billion yen,
thanks to an increase in gains on sales of assets for the revitalization investment
business and for rental business, etc., while credit costs were posted for a certain projectin the U.S.
Please turn to page 16.

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In “Mobility”, segment profit increased by 0.4 billion yen YoY to 2.3 billion yen, thanks toan increase in gains on sales of vehicles for which the leasing term matured, etc.,
against a backdrop of the strong used car market in Japan.
Next, I explain the financial forecast for FYE3/2023. Please turn to Page 18.

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Before we move into the financial forecast, let me explain how we recognize the macro
environment which form the assumptions of the forecast.
Regarding the macro environment stated in the upper row, we acknowledge that theuncertainty in the external environment is growing as shown by the IMF’s downward
revision of the world economic outlook. This revision was due to the prolonged Ukraine
situation, steep rises in resource prices, inflation, and interest rate rises in Europe andthe U.S. in order to control the inflation.
Regarding the impact of the interest rate rises, stated in the middle row, we have built astrong financial structure resistant to the interest rate rises through the ALM on aconsolidated basis. Because of that, we estimate there will be no major impact on ourfinancial results.
Regarding the impact of fluctuation in exchange rates, we have not taken any exchange
rate risks by matching the currency of the assets and the corresponding debts inprinciple. The weak yen have both positive and negative effects to our financials. The
positive effect comes through the fluctuation of applied exchange rates whenincorporating the results of overseas subsidiaries into the consolidated financial
statements. The negative impact comes through the exchange revaluation losses inrelation to foreign currency-denominated borrowings in JOLCO. As I explained earlier on
page 6, it depends on how much each currency fluctuate, but the negative impact of theincrease in the exchange revaluations losses was a slightly bigger than the positive
impact for 2Q FYE3/2023.
Regarding the impact of the macro environment on businesses, stated in the bottom ofthe chart, the businesses conducted by subsidiaries in Europe and the U.S. in the GlobalBusiness segment and the marine container leasing business grew YoY and the credit
costs also decreased YoY in the Global Business and Aviation segments. Meanwhile, as
the risk of recession has been increasing mainly in Europe and the U.S., we will continue
keeping a close eye on the impacts on our businesses, such as the performance of ourcustomers, global air passenger demand, and volume of container transport and go on
the appropriate management on the risks.
Please turn to page 19.

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Based on the perspective of the macro environment, our financial forecast of the net
income attributable to owners of the parent for FYE3/2023 of 110.0 billion yen remains
unchanged, even though the progress against the forecast for FYE3/2023 up to 2Q washigh at 57.4%. Our forecasts for ROA, ROE and OHR also remain unchanged from initial
forecasts.
Please proceed to page 20.

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Lastly, let me explain the dividend forecast for FYE3/2023. Considering that financial
forecast keeps unchanged, estimation of the annual dividend per share remains
unchanged at 31 yen, up 3 yen YoY. The interim dividend in FYE3/2023 was resolved tobe 15 yen, up 2 yen YoY, the same as we planned in the beginning of this fiscal year.
This concludes my part of the briefing.

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The merger is scheduled to come into effect on January 1, 2023, with CAI as thesurviving company.
After the merger, the new company will be the 3rd globally in terms of marine container
leasing market share, based on CEU as of the end of December 2021, being among thehighest in the world.
Through this merger, we intend to further strengthen and expand the business to make it
our leading force by integrating knowledge of the former two companies andincorporating the growth opportunity of this business.
Please turn back to page 15.

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