Introduction

Message from thePresident & CEO

Value Creation Story Business Strategies

Financial Strategy

Strategy to EnhanceNon-financial Capital

Governance

Data Section

Key Themes to Be Addressed across Segments
At the Mitsubishi HC Capital Group, we have defined and discussed key themes to be addressed withconcerted efforts across segments to facilitate the evolution and layering of business models, which is
aimed at achieving Our 10-year Vision.
We came up with this approach while we were looking for a way to overcome silo thinking and working
and instead produce a vision for the future that transcends boundaries between divisions.
Specifically, we have identified four areas: hydrogen, EVs, logistics, and decarbonization solutions. We
will work to address the social issues associated with these themes and create social value with partnercompanies, rather than by the Group working alone, helping to realize a prosperous and sustainable future.

HydrogenAs a leading holder of renewable energy power sources in Japan and an asset businesscompany with a diverse customer base, we will contribute to building a hydrogen supply
chain with green hydrogen at the core.
The hydrogen market is set to expand from 2030
onward. As a leading holder of renewable energy
power sources in Japan, in order to contribute to thedevelopment of a hydrogen supply chain, we willconsider manufacturing green hydrogen by leveraging
our experience in renewable energy generation businesses
and the assets we possess to support customersʼ
use of hydrogen by leasing and financing hydrogen-related equipment. We will create business opportunities
while exploring the possibility of cooperation with key
players in the supply chain, where hydrogen is produced, transported, and used.

As a first step toward realizing this goal, we arefocusing on a business model of local production for
local consumption, in which hydrogen is manufactured inplaces close to where it is needed. We will consider
participation in demonstration projects with partnercompanies, among other measures, aiming to accumulate know-how in the business.
We will also look at expanding the business toaddress social issues faced by our customers, focusing
on the fact that the number of assets that use hydrogen
will increase in various areas.

Support for introduction, including financing for hydrogen-related equipmentRenewable energy
Hydrogen filling
power sources
infrastructure
Green hydrogen

Assets that usehydrogen
Hydrogen consumers
Manufacturers
Airlines and airports
Logistics operators, etc.

Leasing and financing
Manufacturing and supply ofgreen hydrogen
Providing support by supplying green hydrogen from renewable energy power sources
as well as leasing and financing hydrogen-related equipment

EV Related BusinessWe will provide integrated EV services that can extensively provide the functions
necessary for introducing and operating EVs, such as building charging infrastructure,reusing automotive batteries, and supplying renewable energy, beyond only leasing EVs.
Given the possibility of developing businesses stemmingfrom EVs, we will start by focusing on EV-related businesses, including charging facilities and batteries,
strengthening cooperation within the Group and withexternal partners. We also envisage the development ofa unique new service and business model that connects
and combines different industrial fields through datacollection and analysis that leverage digital technologies.

Aiming to achieve the Mitsubishi HC Capital Group Materiality through the mobility
solutions businessCurrent auto
leasing andmobilitybusinesses- Global expansion- Strengthening
horizontal
cooperation- EV
eco-management- Reuse of batteries- Sharing business- DX-related
businesses- Building logistics
infrastructure- Logistics DX- Participation insmart city business- Multimodal businessPriority areas

As part of this initiative, in Japan, we are enhancing
functions for the eight constituents in the fan-shaped
conceptual rendering of the integrated EV service(“Conceptual rendering of an integrated service that canextensively provide the functions necessary for introducing and operating EVs” on page 42) and developing
services by using the Groupʼs project to replace company-owned vehicles with EVs as an opportunity for ademonstration experiment.
We will continue to develop charging solutions
adapted to parking spaces in a range of specifications
and forms, which is the largest obstacle to customersʼ
shift to EVs at present, and advance initiatives to extend
the lifetime cycle of automotive batteries, including

monitoring their health conditions and maintenance andmanagement of battery life. We will also address thediverse needs and issues faced by customers by combining functions held by the Group and cooperating withexternal partner companies to enhance our services,such as supplying renewable energy using the in-house
power plants of Mitsubishi HC Capital Energy.
In addition, with respect to initiatives to realize thefan-shaped conceptual rendering, we are conducting
studies for a demonstration experiment in Europe, aregion that is leading the way with the introduction ofEVs, in collaboration with partner companies. We hope
to expand to other overseas regions in the future.

Example of initiatives
In September 2023, in the switching of companyvehicles used at our Chushikoku Branch to EVs,
Mitsubishi Auto Leasing and Mitsubishi HC Capital
Energy, which are Group companies, began toprovide an integrated one-stop service that permits
customers to introduce EVs and renewable energy

without bearing the initial cost. With this service,
Mitsubishi Auto Leasing provides EV leasing andfleet management services, while Mitsubishi HC
Capital Energy supplies power with non-fossil value
together with charging infrastructure.

In October 2021, we invested in Universal Hydrogen Co., a US
company developing hydrogen storage capsules and engines(power trains) for hydrogen-powered aircraft.

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配賦リスク資本の決定

使用リスク資本（リスク量）の確認

追加配賦可能なリスク資本

配賦
リス
ク
資
本

信用リスク
アセットリスク
投資リスク
市場リスク
オペレーショナルリスク

Introduction

信用リスク
使用アセットリスク
リ
投資リスク
ス
ク
市場リスク
資
本 オペレーショナルリスク

Message from thePresident & CEO

Value Creation Story Business Strategies

Financial Strategy

Strategy to EnhanceNon-financial Capital

Governance

Data Section

Logistics

Decarbonization Solutions

We will build and provide optimal logistics solutions based on customer needs.

We will offer diverse solutions as a total service provider in the decarbonized society.

The 2024 problem will emerge due to new regulations tobe imposed under the Act on the Arrangement ofRelated Acts to Promote Work Style Reform. This willpose a wide range of issues to the logistics industry,including a decline in transportation capacity and theneed to reform cargo owner companiesʼ logistics structure and revise their forms of transportation. At theMitsubishi HC Capital Group, we will help customers
maximize logistics efficiency and improve productivity bystarting with the following solutions.

While moves toward decarbonization are rapidly changing from a social issue to a compelling business challenge, we believe that a key mission of the Mitsubishi HC
Capital Group is to provide optimal decarbonization
solutions to our stakeholders. To fulfill this mission, wewill cooperate with partner companies to further(1) Systematization of transportation: Providing solutions
for improving the efficiency of transportation anddelivery operations, sharing the operations, andreducing waiting time for loading(2) Logistics DX and standardization: Labor saving forlogistics facilities/equipment or shifting to unmanned
operation using robotics, etc.
(3) Building a logistics network: Developing solutions aimed
at providing high value-added logistics services byestablishing, consolidating, and closing logistics bases

Mitsubishi HC Capital Group customer base

Challenge (1)Improving the efficiencyof means of delivery

Accumulation, analysis, and utilization of data
related to companiesʼ decarbonization

Mitsubishi HC Capital Group
Customer base (cargo owners and partners)
Challenge (2)Challenge (3)Reforming cargo ownersʼ logistics
structure

Improving the efficiencyof work in warehousesEnhancing the value of solutions

Provision of decarbonization solutions

Possession of assets, charging, data utilization

Example of initiatives
As part of initiatives for the systematization of transportation and logistics DX, LOGISTEED Auto
Service, Ltd., which is jointly funded by LOGISTEED,Ltd. and Mitsubishi HC Capital, provides
SSCV-Safety*1 as a subscription service. Aimed atbuilding an accident-free society, this service visualizes driversʼ physical conditions and the travel oftrucks by using IoT and AI. We thus support labor atenhance our existing services and accelerate the development of new services. We will create new value by
integrating data and solutions, which we have cultivatedover many years, to co-create businesses with partnercompanies, enhance our lineup of solutions for customers, and provide them as one-stop services.

logistics work sites with many analog operations aswell as traffic control operations, such as the allocation of vehicles, from the viewpoint of DX.
*1 SSCV-Safety (Smart & Safety Connected Vehicle): SSCV-Safety is thecore function of the transportation digital platform of LOGISTEED, Ltd.
This service is provided in combination with Hitachi Digital Solution for
Logistics, a logistics solution from Hitachi, Ltd. We are responsible formanaging the process from the procurement of devices needed toprovide the service to their installation, maintenance, and replacement,
and collecting service fees related to the money flow.

Calculating CO2 emissions
and formulating plans

Reducing energy consumption and CO2 emissions

Generating and using
renewable energy

Carbon offsetting withenvironmental value(visualizing CO2 emissions and supportingthe creation of a reduction roadmap)(replacement/control of facilities,
electrification, etc.)(using solar power, wind power, andenergy storage technologies)(supporting the procurement orcreation of credits and certificates)

At the Mitsubishi HC Capital Group, we provide solutions
tailored to customer needs in terms of both supply andconsumption in the energy value chain by cooperatingwith various partner companies. We thus help customers
solve their decarbonization issues.
We have now launched the development of aone-stop service, including proposals for facility replacement and the introduction of renewable energy, which
will be given by introducing systems for monitoring,
managing, and controlling energy and facilities andanalyzing data. It will be a service in which we manage

customersʼ energy and facilities in an integrated mannerto contribute to further reductions in CO2 emissions.
We are also supporting renewable energy supply
and customersʼ initiatives to contribute to carbon neutrality through the Jikotaku Support Service (“JikotakuSupport,” self-consignment support) *2 from Godo
Kaisha RenetS, which we established through a joint
investment with REZIL Inc. (formerly Chuo ElectricPower Co., Ltd.), among other services, in addition to aPPA scheme with Mitsubishi HC Capital Energy.
*2 See the example of the initiative below for details of Jikotaku Support.

Targets
Logistics
operators

Companies that deliver goods on their own, suchas manufacturers and retailers

Bus
operators

Local governments,etc.

Other commercial
vehicles, etc.

LOGISTEED Auto Service
Development and provision ofapplications filled with expertise inlogistics

Providing IoT equipment and data
management platforms byleveraging track record in products,
OT, and IT
Dashboard camera (newlydeveloped)
Data management cloudcomputing
Hitachi Digital Solution for Logistics

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Commercialization of a
subscription service covering
procurement, mounting, andmaintenance of equipment
Procuring devices and keeping them in stock
Mounting/installing IoT equipment
Service desk
Cooperation in sales expansion

Example of initiatives
While demand for renewable energy is growing,companies are facing issues such as a lack of spacefor installing renewable energy power plants on theirpremises or roofs and a lack of know-how in
self-consignment for supplying electric power generated in remote locations to their own facilities(supplying power generated at their own facilities tofacilities, etc. in another area via a power transmission and distribution network possessed by anelectricity transmission and distribution operator).
In response, we established Godo Kaisha
RenetS through a joint investment with REZIL Inc.

and began to provide Jikotaku Support, a one-stop
service supporting the self-consignment of low-voltage electricity from solar power with a low environmental impact.
With this service, we provide one-stop support,
from the development, maintenance, and management of a power plant to operations needed for
self-consignment, such as procedures with a generalelectricity transmission and distribution operator, aleasing agreement on the power plant, calculation of
its predicted power output, and submission of apower generation plan.

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