Introduction

Message from thePresident & CEO

Value Creation Story Business Strategies

Financial Strategy

Strategy to EnhanceNon-financial Capital

Governance

Data Section

Human Capital Initiatives
The Company recognizes that accumulating and utilizing human capital is an important issue to improve corporate
value through the realization of its Basic Management Policy and the medium- to long-term management direction. In
particular, to realize the SX/DX and business portfolio transformation shown in the medium- to long-term management
direction and achieve performance indicators targeted by the Group, the Company will secure and utilize necessary
human capital in terms of both quality and quantity. In fiscal 2022, we started visualizing human capital and beganconsidering the gap between the human resources needed to achieve SX/DX and business portfolio transformation andthe status of our human resources, in terms of both quality and quantity.

Human Capital Strategy
Themes that we want to accomplish
In securing and utilizing human capital (qualitative shift in
human resources and securing the quantity of human

What we want to accomplish (a)Fulfillment of a talent portfolio
Develop and secure human resources
contributing to the Companyʼs realization ofstrategies (quality and quantity)

What we want to accomplish (b)Improvement in employee engagement
Create an environment where employees
work together to promote value creationresources) we uphold two themes to be accomplished in
the medium to long term.

We define the quality and quantity of human resources necessary to realize the mediumto long-term management direction and visualize a talent portfolio.
We understand the disparities between our necessary human resources and current
human resources in terms of quality and quantity and implement measures for filling themto supplement necessary human resources.
The Company creates an environment where employees take pride in their work andmake discretionary efforts to work, there is a comfortable working environment whereemployees can utilize their capacities, and diverse employees are respected to enable
employees to work together to promote value creation.
We clarify issues to achieve and promote measures to continuously realize the status ofhigh employee engagement.

Details of Initiatives
With regard to the above themes to be accomplished,
we will give priority to working on the two matters of thehuman resource management base and the creation of asystem for improvement in engagement. We will produce

a qualitative shift in human resources by reconstructing
our human resource management base, and maintainhigh levels of employee engagement by creating asystem for improvement in engagement. Thus, we willsecure the quantity of human resources we require.
Details of Initiatives

Reconstructionof the HumanResource
ManagementBase

The Company has collected/accumulated information on human resources and used it for utilization of human resources(allocation and development) to date.
Going forward, for “What we want to accomplish (a) fulfillment of a talent portfolio,” we will reconstruct the humanresource management base, define types of human resources necessary to realize the medium- to long-term management direction, and then further understand human resources and conduct the human resource development that
contributes to a qualitative shift.
In understanding human resources, we handle qualitative factors such as experience, knowledge, skills, and competency
in addition to the quantitative perspective, including the number of employees. In human resource development(qualitative shift), we identify qualitative issues to fulfill a talent portfolio and take measures for capacity development.
Moreover, we will improve the accuracy of matching between human resources and jobs by systematically organizing information
on jobs, in addition to information on human resources, to further ensure that the right people are placed in the right jobs.

Creation of aSystem for
Improvement inEngagement

The Group has identified current issue areas by conducting an engagement survey and implemented improvement
activities to date.
Going forward, with KPIs set as indicators for engagement surveys, we will actively set challenges by establishing andutilizing a system to manage results, causes, and processes and promote measures.
We will continuously realize the status of high engagement as the entire Group, ultimately securing the quantity ofhuman resources.

Indicators and Targets
To achieve the target themes, we will formulate a talent
portfolio framework, visualize the degree of fulfillment,
and refine the content of engagement surveys todevelop a more sophisticated analysis.

59MITSUBISHI HC CAPITAL INTEGRATED REPORT 2023Developing and Securing Human Resources to Fulfill the Human Resource Portfolio
With our Basic Management Policy as a guide, we areconstantly developing human resources to realize strategies, such as business development that goes beyond
leasing and finance. The basic framework of our training
system consists of rank-based training in conjunction
with global, DX, and diversity training.
In rank-based training, we conduct various forms oftraining tailored to junior, mid-level, and management-level employees to develop their knowledge andimprove their capabilities. At the same time, we conducttraining along the lines of multiple themes related to
global operations, DX, and diversity. We are committed
to continually revising and further advancing the training
system in the interest of producing a qualitative shift in
our human resources.
Furthermore, to support career advancement, wehave a system that allows employees to change career
tracks, and an in-house job posting program throughwhich employees can apply for the jobs they want to do.
We also offer a career development program that helps
employeesʼ self-directed efforts to develop their skills
through training open to all employees and self-development support.
As the abilities and expertise required by each areaof business become more diverse, we have put in place
the necessary company-wide interpersonal skills training
programs and conceptual skills training programs
needed for organization and project management. In
addition, each business division has introduced its own
customized technical skills training and training rotationplans through which employees can systematically gain
experience within their divisions. Further, we operatemeetings where these initiatives are discussed andexamined to share and refine human resource development and succession plans (the cultivation of successors
to top management positions), ensuring that our various
training programs are accompanied by measuresdesigned to enhance training outcomes.
Additionally, training based on common Groupwide
themes and certain training tailored to junior employees(compliance-related training, new employee training,communication training, and so on) is run on a Groupbasis, including for the employees of Group companies
who wish to take part.

Global talent development
As a global company with firm roots in each country inwhich it operates, the Mitsubishi HC Capital Groupfocuses on developing global talent to support its operations. In Japan, we provide not only training to acquire
language skills but also cross-cultural training to build anunderstanding of different cultural backgrounds aroundthe world and promote smooth collaboration with
employees at overseas offices and local partners. We areworking to enhance a training system that ties directly toemployeesʼ daily work.
In addition, we encourage junior employees tocultivate a global perspective through training that fosters interest in working overseas. We have an ongoingoverseas trainee program that dispatches junior staff toother countries every year, which creates opportunities
for them to come into direct contact with overseas
businesses.
Through this system, junior employees gain practicalexperience overseas while we develop and expand ourfuture global core talent base.
For employees at overseas offices, we provide training to promote understanding of Mitsubishi HC Capitalʼs
Basic Management Policy, including Our Mission, and toachieve better engagement with the Mitsubishi HC CapitalGroup. We also provide training that brings together local
employees from various countries and regions to nurture
camaraderie across the Group.
Digital talent development
The promotion of DX and the development of digitaltalent is important if we are to realize Our 10-year Vision.
To develop digital talent, we assess all employees
and officers yearly to visualize their level of DX and thenprovide e-learning and ability-based training to enhancetheir DX literacy. We also encourage employees toacquire various qualifications.
We also select DX experts with high-level expertiseand a reform-oriented mindset from among employeeswith a high level of corresponding skill and background,regardless of seniority or position, and place them inmore practical training programs in terms of both offensive and defensive approaches to operations to further
accelerate the development of related talent.

Specifically, we will monitor outcome measures by
setting outcome-indicating KPIs and cause/process-indicating KPIs, while also identifying key causes and processes and implementing effective measures to meettargets.

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IntroductionRecruiting and developing professional talent
To advance the evolution and layering of our businessmodel, in mid-career recruitment we seek talent irrespective of gender, nationality, or other factors, hiringexperienced professionals from each industry in which
the Group operates. We also engage in recruitment
activities that cast a wider net to attract potential talent.
As measures to enhance our recruitment framework,
we have developed schemes for referral-based recruitment in response to employee introductions and alumni
recruitment to re-hire employees who have resigned inthe past as part of efforts to recruit from a diverse poolof talent and secure sufficient quantities.

On the development front, we train generalist humanresources geared to function in various departments, but
we also develop and cultivate professionals to leadbusiness areas. As our business has grown more sophisticated and globalized in recent years, we have focusedon the enhancement of advanced specialized skills thatare required in each area.
We believe a recruitment and development plan for
professionals from a medium- to long-term perspective isessential and hold meetings with various business divisions operating in key areas to promote discussions on (1)a training system that includes a predetermined job rotation and (2) strategic and proactive external recruitment.

Diversity and Inclusion Aimed at Enhancing Employee Engagement
We position the promotion of diversity and inclusion as
an important management strategy for the further expansion of the Groupʼs business domains and global operations, with our basic policy to foster a vibrantorganizational culture that can create new value by
bringing together a diverse group of human resources
who can leverage one anotherʼs strengths and bring out
the most of each personʼs motivation and talents.
One of our action principles is “Diversity: Embrace
diversity and respect each other.” With this as the foundation, we aim to realize a vibrant organization that cancreate new value by bringing together a diverse group ofhuman resources who represent a broad range of individual attributes such as nationality, age, and gender;and differences in life stage, experience, and values; andwho can leverage one anotherʼs strengths and bring out
the most out of each personʼs motivation and talents.
Promoting womenʼs participation and advancement
We have formulated an action plan based on the Act on
Promotion of Womenʼs Participation and Advancement in
the Workplace and strive to promote womenʼs success.
We have introduced systems that encourage thelong-term employment of women and support their careerdevelopment through rank-based training, dispatch toexternal training, and other opportunities. As a numericaltarget, the Company has set the goal of raising womenʼs
representation in management positions (section manageror above) to 20% or more by the end of fiscal 2025.
“Eruboshi” markMitsubishi HC Capital was awarded the second-level“Eruboshi” mark from the Minister of Health, Labour andWelfare in recognition of its excellence in the implementationof initiatives to promote womenʼs active participation andadvancement in the workplace, which fulfill the certification
standards established under the Act on Promotion ofWomenʼs Participation and Advancement in the Workplace.

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Employing people with disabilities
We position the employment of people with disabilities
as part of ensuring the success of diverse humanresources. We have established the Business Associate
Employment System that provides a pathway for contract employees who have worked for the Company forat least one year to become permanent employees. We
offer career paths after becoming permanent employees,
fair evaluation and employment conditions under a goal
management system, regular consultations and continuous education and training. We provide a workplace
where employees can work at ease in an active role, as
we develop human resources able to contribute toenhancing corporate value.
In addition, by conducting education and training for
managers who work with and supervise employees withdisabilities, with a focus on correct knowledge of, understanding of, and support for employees with disabilities,
we are embedding inclusive work practices among
teams of employees with and without disabilities.
Work-life Balance
Aiming to reduce long working hours and control the total
number of hours worked, the Company has set numericaltargets for the rate of annual paid holidays taken by
employees and monthly average overtime hours, and areworking to realize work-life balance. In addition, we pursue
initiatives to improve work efficiency, including systems thatenable flexible working styles such as flex-time working
hours, work from home, and telecommuting. As a systemthat allows employees to work based on their individual
circumstances, we have also developed schemes forvolunteer leave, as well as child and family care leave.
In April 2023, we introduced health promotion leaveand further enhanced the programs we offer to support
and advance individual employee health.

Message from thePresident & CEO

Value Creation Story Business Strategies

Support for balancing work and childcare
We are working to expand the support system andcreate a workplace environment that enables employees
to balance work and childcare.
Employees taking childcare leave are provided witha tablet device with access to the Company intranet andcan participate in roundtable discussions with others
also on childcare leave. This enables them to return towork more seamlessly after their period of leave. Inaddition, the Human Resources Department holds careerinterviews for returnees aimed at supporting proactive
career development while maintaining a balance
between work and childcare.
We also actively work to encourage men to participate in childcare through initiatives including the setup ofa childcare leave consultation desk and publication of achildcare leave guidebook targeting male employees,
and have set the goal of having 100% of eligible maleemployees use childcare leave by the end of fiscal 2025.

Financial Strategy

Strategy to EnhanceNon-financial Capital

Governance

Data Section

Certified as a Health & Productivity Management Outstanding Organization (Large Enterprise Category)In 2023, we were certified as a Health & Productivity
Management Outstanding Organization in the large
enterprise category for the fifth consecutive year. The
Certified Health & Productivity Management
Organization Recognition Program recognizes large
enterprises, SMEs, and other businesses engaged inparticularly outstanding health and productivity management practices to take action based on health issues
and implement initiatives to advance health as advocated by the Nippon Kenko Kaigi organization.
We have also met the standards for all evaluation
items, including initiatives to achieve appropriate workstyles, such as a healthy work-life balance, and theinvolvement of industrial physicians and public healthnurses to maintain and advance employee health.

Platinum “Kurumin” Mark
Mitsubishi HC Capital was awarded the Platinum“Kurumin” mark by the Minister of Health, Labour andWelfare in recognition of having fulfilled the required
standards under the Act on Advancement of Measures
to Support Raising Next-Generation Children. Goingforward, we will enable our employees to choose fromdiverse working styles according to their individual life
stage and environment, such as the need to balance
work and child raising. By doing so, we will promote thedevelopment of structures and a corporate culture inwhich they can perform to the best of their abilities andachieve professional success.
Please refer to our website for details.
https://www.mitsubishi-hc-capital.com/english/sustainability/social/employees_and_families.html

Message from the Diversity Promotion Office
To realize a workplace environment in which each employee can flourish
The Company positions diversity and inclusion as one of its key
management strategies and is making every effort to develop anenvironment in which each employee can maximize their individual
motivation and talents.
With measures to champion the success of women in the workplace, along with improvements to systems that help employees
balance work with home life and the introduction of telecommuting
and flextime systems, we are working to develop a work environmentthat enables efficient work.
To realize a work environment in which every employee, eachboasting a diverse array of attributes, values, and backgrounds, canflourish, we will continue to promote diversity and inclusion in the future.

Members of the Diversity Promotion Office

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