Financial Results
for the Fiscal Year Ended March 31, 2024
Mitsubishi HC Capital Inc.
May 15, 2024

Legal Disclaimer⚫ This presentation contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overallmanagement of Mitsubishi HC Capital Inc. and/or its group companies.
⚫ These forward-looking statements are inherently subject to a number of risks and uncertainties that could cause the actual results, performance, achievements, financial position etc. todiffer materially from the information expressed or implied by these forward-looking statements, which is based on assumptions and beliefs in light of information currently available to the
management of Mitsubishi HC Capital Inc. at the time of publication. Accordingly, due to various risks and uncertainties, the statements are not a guarantee of future performance ordevelopments. We may not be successful in implementing our business strategy, and management may fail to achieve its targets for a wide range of possible reasons.
⚫ Amounts are rounded down in this presentation, which may cause a fractional error in total amounts. We undertake no obligation to update or correct any forward-looking statements after
the date of this presentation. The information set forth in this presentation is subject to change without notice.
⚫ This presentation is not intended to solicit, offer, or sell investments in any jurisdiction, and should not be the sole basis for making investment and other decisions. The reader is cautioned
not to place undue reliance on forward-looking statements.

⚫ We assume no liability for any damage resulting from the use.
⚫ This presentation is created 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, the Japanese text shall prevail.

Definitions of Terms and Figures Used in this Presentation◼ MHC: Mitsubishi HC Capital◼ HC:

Hitachi Capital◼ Asset-related gain/loss:
The sum of gain/loss on sales and impairment losses of owned assets based on gross profit
in the Customer Solutions, Environment & Energy, Aviation, Logistics, and Real Estatesegments◼ EE:

European Energy (Became an equity-method affiliate in April 2024)◼ Base profit: Gross profit other than asset-related gain/loss◼ MUL: Mitsubishi UFJ Lease & Finance◼ JSA: Jackson Square Aviation (Aircraft leasing company)◼ ELF: Engine Lease Finance (Aircraft engine leasing company)◼ CAI: CAI International (Marine container leasing company)◼ BIL: Beacon Intermodal Leasing (Merger with CAI (surviving company) completed in
January 2023)◼ DAF: Diamond Asset Finance (Share transfer completed in March 2023)◼ CPD: CenterPoint Development (Became a wholly-owned subsidiary in April 2023)◼ CA:

Mitsubishi HC Capital Auto Lease (Merger with Mitsubishi Auto Leasing(surviving company) completed in April 2023)◼ Income Gain: Base profit + non-operating income/loss(do not include gains on bad debts
recovered)◼ Net Income: Net income (quarterly/annually) attributable to owners of the parent◼ ROA:Net income(total assets at the end of previous FY + total assets at the end of this FY) / 2◼ ROE:Net income(equity at the end of previous FY + equity at the end of this FY) / 2◼ Segment Assets:
Operating assets + equity-method investments + goodwill + investment securities, etc.

1

IndexⅠ Highlights
Ⅱ

Financial Results for
FYE3/2024

Ⅲ Segment UpdatesⅣ

Financial Forecast for
FYE3/2025

Ⅴ

Progress of the Medium-termManagement Plan (2025 MTMP)

Ⅵ Reference Information2

I. Highlights

Back to Index

Highlights
Net income for FYE3/2024 increased by 7.6 billion yen YoY to 123.8 billion yen.
Annual DPS is to be 37 yen, increasing for 25 consecutive years.
✓✓✓

Net income exceeded the initial forecast (120.0 billion yen) by 3.8 billion yen (3.2%), hitting a record high for two consecutive years.
While net income had been slow compared to the initial forecast until the 3Q due to losses and expenses not anticipated in the initial plan,
the initial forecast was achieved because profits in Aviation and Logistics businesses and gains on sales of assets in Real Estate andEnvironment & Energy businesses exceeded the plans.
The annual dividend per share is to be 37 yen* (up 4 yen YoY) as per the initial forecast, increasing for 25 consecutive years.

Forecast net income of 135.0 billion yen and annual DPS of 40 yen (+3 yen) for FYE3/2025.
✓✓

We forecast the net income for FYE3/2025 will increase by 11.1 billion yen (9.0%) YoY to 135.0 billion yen thanks mainly to the growth inAviation and other businesses, and an absence of large losses recorded in FYE3/2024, despite a reactionary fall in extraordinary income
recorded in FYE3/2024.
The annual dividend per share will increase by 3 yen YoY to 40 yen (payout ratio of 42.5%), increasing for 26 consecutive years.

The first year of the Medium-term Management Plan (2025 MTMP) for the enhancement of the medium- to long-term
corporate value got off to a satisfactory start.
✓✓✓

We had a smooth start for financial and non-financial targets. The replacement of business portfolios has also progressed steadily.
While there are issues with the pace of the “Evolution and Layering of Business Models” and the Americas of Global Business, we will
recover on a company-wide basis.
Regarding the “Frameworks to Promote Transformation”, we have steadily fostered the awareness of transformation through the use of theInnovation Investment Fund, etc.

* The fiscal year-end dividend for FYE3/2024 will be resolved in the Board of Directors meeting to be held on May 22, 2024.
4II. Financial Results for FYE3/2024

Back to Index

Financial Results for FYE3/2024✓ Net income increased by 7.6 billion yen YoY to 123.8 billion yen, exceeding the initial forecast and hitting a record high.
✓ New transactions volume increased by 411.3 billion yen YoY to 3.0519 trillion yen. New transactions increased in Aviation, Real Estate businesses, etc.
✓ ROA was 1.1%, as per the initial forecast, while ROE was 7.7%, slightly lower than the initial forecast due to depreciation of the yen.
(a)

(b)

(c)=(b)-(a)(d)=(c)/(a)YoY

Change%FYE3/2023

FYE3/2024

1,896.2

1,950.5

+54.3

+2.9%

-4.7

-

-

(Billion Yen)

(e)

(f)

(g)=(b)-(f)Change(Excl. Impact of
Exchange Rates*1)

FYE3/2024
Forecast

Change1

Revenue2

Gross Profit

357.3

380.0

+22.7

+6.4%

+5.8

-

-

3

Recurring Income

146.0

151.6

+5.5

+3.8%

-1.9

-

-

4

Net Income

116.2

123.8

+7.6

+6.5%

+2.0*2

120.0

+3.8

5

New Transactions Volume2,640.6

3,051.9+411.3+15.6%+261.0--Change from FYE3/2023
Change(Excl. Impact of
Exchange Rates*1)

FYE3/2023

FYE3/2024

9,632.9

10,179.4+546.5

FYE3/2023

FYE3/2024

YoY Change

FYE3/2024
Forecast

Change%(Billion Yen)
6

Total Segment Assets

+5.7%

-41.7
Change7DPS

33 yen37 yen+4 yen37 yen0 yen

8Payout Ratio

40.8%

42.9%

+2.1pt44.3%-1.4pt

9

ROA

1.1%

1.1%

0.0pt

1.1%

0.0pt

10

ROE

8.2%

7.7%

-0.5pt7.8%-0.1pt*1 An impact of the YoY difference in exchange rates when incorporating the financial statements of overseas subsidiaries (refer to page 53 for applied exchange rates)*2 The YoY change was approx. +1.3 billion yen, excluding a decrease in exchange revaluation losses (approx. +0.7 billion yen) in relation to foreign currency-denominated borrowings for leasing transactions of aircraft owned by MHC(Note) As MHC denominates financial statements in JPY, foreign currency-denominated assets and liabilities are converted into JPY. However, for accounting purposes, while assets (aircraft) use the exchange rate as of the lease start date,
the liabilities (borrowing) use the exchange rate as of the final day of the fiscal period. Therefore, exchange revaluation losses or gains (weak yen: revaluation losses, strong yen: revaluation gains) may occur

6Increase/Decrease Factors in Net Income (YoY)✓ Though there were impairment losses not included in the initial plan and an increase in credit costs in Global Business (the Americas),
net income increased by 7.6 billion yen (6.5%) YoY thanks to business growth mainly in Aviation business, and large gains on sales of assets andstrategic shareholdings, etc.
+ : Positive effect on net income- : Negative effect on net income(1) Business Growth*1 (Excl. Impairment Losses, etc.*2): Up ¥28.8Bn

Increase/Decrease in Net Income(Billion Yen)

(1)
+28.8
-6.9
(2)

Net
Income
+7.6

(5)
+8.9
-5.8

(3)
Business
Growth*1+21.9

-6.9
(6)

-10.5
(4)

123.8

116.2

◼ Global Business (+¥14.6Bn):

Impact of exchange rates and positive effects of thereorganization of subsidiaries in the Americas*3 (+¥3.1Bn)◼ Aviation (+¥13.5Bn):

An increase in leasing revenues, etc.

(2) Impairment Losses, etc.*2: Up ¥6.9Bn◼ Real Estate (-¥6.8Bn):

Losses in U.S. real estate businesses◼

Impairment losses related to a solar power generation projectin Japan

Environment & Energy*4 (-¥5.8Bn):◼ Aviation (+¥3.2Bn):

A decrease of impairment losses◼ Logistics (+¥2.4Bn):

An absence of impairment losses in FYE3/2023(3) Credit Costs: Up ¥5.8Bn
Positive Factor
FYE3/2023

2023/3期

Business

Impairment Credit Costs Operating
減損等*²
貸倒関連費用 Expenses
経費
Losses,(Excl. Impairment
etc.*2

事業成長*¹
Growth*1（減損等*2を除く）

Negative Factor
Extraordinary
Other
FYE3/2024
特別損益 (Taxその他
Expenses, 2024/3期
Income/Lossetc.)◼ Global Business (-¥15.9Bn):

An increase in credit costs in the Americas, etc.

◼ Aviation (+¥9.7Bn):

A large reversal of allowance for doubtful accounts(4) Operating Expenses: Up ¥10.5Bn◼ Global Business (-¥9.6Bn):

Losses, etc.*2)(Billion Yen)
(1) Business Growth*1 (Excl. Impairment Losses, etc.*2)(2) Impairment Losses, etc.*2(3) Credit Costs(4) Operating Expenses(5) Extraordinary Income/Loss(6) Other (Tax Expenses, etc.)

FYE3/2023

FYE3/2024

372.9
11.3
13.7
201.7
7.0
36.9

401.7
18.3
19.5
212.3
16.0
43.8

Impact of exchange rates and negative effects of thereorganization of subsidiaries in the Americas*3 (-¥2.2Bn)(5) Extraordinary Income/Loss: Up ¥8.9Bn◼ Customer Solutions, etc. (+¥9.2Bn): An increase in gains on sales of strategic shareholdings, etc.
◼ Real Estate (+¥5.8Bn):

Extraordinary income as a result of making CPD a whollyowned subsidiary, etc.

◼ Global Business (-¥5.0Bn):

An absence of gains on revaluation of securities in Europe
in FYE3/2023, etc.

(Note) Figures shown in (1) through (5) are on a pre-tax basis. Tax expenses are included in (6)*1 Gross profit + non-operating income/loss (however, non-operating income/loss do not include gains on bad debts recovered)*2 Impairment losses and losses in the Real Estate business in the U.S.

*3 Refer to page 43 for details*4 The segment name was changed due to the reorganization on April 1, 2023

7

III. Segment Updates

Back to Index

Increase/Decrease Factors in Segment Profit (YoY)
Segment Profit
Segment Profit(Billion Yen)
Total: 123.8
Total: 116.2

38.1
38.1

16.6
29.0

(Billion Yen)

FYE3/2023 FYE3/2024

YoY【+】 An increase in gains on sales of strategic shareholdings, etc.
【−】 Absences of large gains on sales related to real estate leasing andof non-operating income (insurance claim income) in FYE3/2023

Customer
Solutions

38.1

38.1

0.0

GlobalBusiness

29.0

16.6

-12.4

【−】 An increase in credit costs in the Americas and an absence ofgains on revaluation of securities in Europe in FYE3/2023

Environment& Energy

11.6

7.3

-4.3

【+】 An increase in gains on sales of owned assets and a decrease intax expenses associated with the absorption-type merger ofsubsidiaries【−】 Impairment losses related to a solar power generation project,a decrease in profits from equity-method investments,
and the temporary expenses in infrastructure business

Aviation

6.2

27.3

+21.1

【+】 An increase in leasing revenue, a large reversal of allowance for
doubtful accounts, and a decrease in impairment losses

Logistics

15.3

17.8

+2.4

【+】 An increase in gains on sales of owned assets

7.3

27.3

Major Factors for Changes in Segment Profit

11.6
6.2
15.3

Real Estate

12.6

11.9

-0.7

【+】 An increase in gains on sales of owned assets, extraordinary
income as a result of making CPD a wholly-owned subsidiary【−】 Losses in U.S. projects and the negative effects of thedeconsolidation of DAF in FYE3/2023

Mobility

3.7

2.7

-1.0

【−】 Negative effects of the deconsolidation of CA in FYE3/2023

Adjustments

-0.6

1.8

+2.4

【+】 An increase in gains on sales of strategic shareholdings, etc.

116.2

123.8

+7.6

17.8

12.6

11.9

3.7
-0.6

2.7
1.8

2023/3期
FYE3/2023

2024/3期
FYE3/2024

Total

9

Customer Solutions
Major Figures (Billion Yen)

Comments
FYE3/2023

FYE3/2024

YoY

116.5

115.9

-0.5

112.3

113.5

+1.2

4.2

2.4

-1.8

Credit Costs

-0.2

1.1

+1.4

Recurring Income

55.2

49.5

-5.6

Gross Profit
Base Profit

Asset-related Gain/Loss

Segment Profit

38.1

38.1

0.0

New Transactions Volume

933.2

984.8

+51.6

FYE3/2024

Change from
FYE3/2023

FYE3/2023
Segment Assets

3,227.7

2,966.5-261.1

Leasing

2,557.2

2,403.8-153.4

Installment Sales/Loans

481.9

403.4

-78.4

Other

188.5

159.2

-29.3

*1 Refer to the release on November 8, 2023, “Notice Concerning Share Transfer Involving a Change in Consolidated
Subsidiaries”

◼

◼

◼

Gross profit decreased YoY due to an absence of large gains on sales
related to real estate leasing in FYE3/2023, etc., despite an increase inbase profit.
Segment profit remained unchanged YoY mainly due to an increase ingains on sales of strategic shareholding, etc., despite an increase in credit
costs and an absence of non-operating income (insurance claim income)in FYE3/2023.
Segment assets decreased YoY due to the negative effects of thedeconsolidation of Shutoken Leasing and DFL Lease associated withshare transfer*1.

Leasing Transaction Volume in Customer Solutions by Asset Type*2(FYE3/2024)

18.2%
35.5%
12.3%

Information andCommunication
Equipment

Transport
Equipment

Office Equipment

Medical Equipment

Industrial
Equipment

Commercial andService Equipment

10.2%
1.9%
1.4%

8.7%

9.5%

Factory Equipment
Construction
Equipment

Others2.3%*2 Leasing transaction volume in sales offices, major subsidiaries, etc. that belong to the Customer Solutions segment
Mitsubishi Auto Leasing, which mainly deals with transport equipment, is not included in the scope because it
belongs to the Mobility segment

10

Global Business (1)Major Figures*1 (Billion Yen)

Total*3
Gross Profit
Credit Costs
Recurring Income
Segment Profit
EuropeGross Profit
Credit Costs
Recurring Income
Segment Profit
Americas
Gross Profit
Credit Costs
Recurring Income
Segment Profit
China
Gross Profit
Credit Costs
Recurring Income
Segment Profit
ASEAN
Gross Profit
Credit Costs
Recurring Income
Segment Profit

Comments
Excl. Impact of
Exchange Rates*2

FYE3/2023

FYE3/2024

YoY Change

121.1
6.8
35.3
29.0

135.3
22.7
24.3
16.6

+14.2
+15.9
-10.9
-12.4

+3.2
+14.2
-13.5
-14.3

62.1
3.9
18.2
17.6

71.8
4.7
22.7
17.0

+9.7
+0.8
+4.4
-0.6

+2.3
+0.2
+2.0
-2.4

41.5
1.4
14.4
10.5

46.5
16.9
-1.5
-1.3

+4.9
+15.4
-16.0
-11.9

+2.1
+14.3
-15.9
-11.8

◼

Gross profit increased YoY thanks to positive effects of adjusting the fiscal
period associated with the reorganization of subsidiaries in the Americas,
an absence of temporary expenses in Europe in FYE3/2023, etc.

◼

Recurring income decreased YoY due to increases in credit costs in linewith the worsening market conditions of the transportation sector that wasstrong during the COVID-19 pandemic in the Americas, etc.

◼

Segment profit decreased YoY due to a decrease in recurring income, anabsence of gains on revaluation of securities in Europe in FYE3/2023, etc.

Gross Profit by Quarter (Billion Yen)

ASEAN

31.2
2.7
1.6

30.2
2.6
1.8

30.6
2.8
1.3

China

6.5
0.9
0.1
0.0

6.0
0.8
0.8
-0.2

-0.5
0.0
+0.6
-0.2

-0.8
0.0
+0.5
-0.3

10.9
0.4
3.0
2.3

10.9
0.1
2.8
1.6

0.0
-0.2
-0.1
-0.6

-0.5
-0.2
-0.3
-0.8

29.0
2.6
1.6

33.9
2.6
1.3

32.6
2.6
1.7

13.8

10.6

34.2
2.9
1.6

34.5
2.7
1.3

11.1

10.8

10.5

10.3

10.7

16.2

15.3

15.7

16.0

17.6

18.5

19.5

14.7

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Americas9.9Europe*1 As these figures are results for the Global Business segment, figures for overseas business in the Aviation, Logistics,
and other segments are not included*2 An impact of the YoY difference in exchange rates when incorporating the financial statements of overseas subsidiaries(refer to page 53 for applied exchange rates)*3 The figures are not equal to the total of each region because they include “Other” figures recorded in the MHC head office account

FYE3/2023

FYE3/2024

11

Global Business (2)Major Figures*1 (Billion Yen)
Excl. Impact of
Exchange Rates*2

FYE3/2023

FYE3/2024

YoY Change

1,300.7

1,389.6

+88.8

-28.7

Europe

729.7

822.2

+92.5

+8.3

Americas

393.7

414.7

+20.9

-3.7

China

65.8

33.9

-31.8

-34.3

ASEAN

111.4

118.6

+7.2

+0.9

-

-

-

-

New Transactions
VolumeAdditional information(general situation at businesses, etc.)◼

Europe✓ In the consumer finance (financing for individual customers) business,as the market interest rates have stabilized and costs are passed on tocustomers, profitability has been gradually recovering. If market
interest rates continue to remain stable going forward, it is expectedthat earnings improvement will progress.
✓ In the vehicle solutions business (provision of comprehensive vehicle

Other

Change from Excl. Impact of
FYE3/2023 Exchange Rates*2

FYE3/2023

FYE3/2024

2,644.2

3,070.8+426.5+47.3

Europe1,310.7

1,621.7+311.0+93.4

Americas934.8

1,086.7+151.8

+25.1

China

162.1

115.3

-46.8

-62.9

ASEAN

234.5

241.6

+7.1

-11.7

Other

2.0

5.3

+3.3

+3.3

Segment Assets

solutions, including leasing), the supply of new vehicles has been on arecovery trend thanks to the improvement of supply chain issues, suchas the lack of semiconductors, and this trend is supporting theincrease of new transactions.

◼

Americas✓ Regarding commercial trucks, which are major assets being handled,

the financial standing of some customers (transportation companies)
has deteriorated, being affected by the decline in fares in thetransportation sector. Fares are forecasted to turn upward in thesecond half of 2024, compared to the same period in the previous year.

*1 As these figures are results for the Global Business segment, figures for overseas business in the Aviation, Logistics, and other segments are not included*2 An impact of the YoY difference in exchange rates when incorporating the financial statements of overseas subsidiaries (refer to page 53 for applied exchange rates)

12

Environment & Energy (1)Major Figures (Billion Yen)

Comments
FYE3/2023

FYE3/2024

YoY

16.4

10.4

-5.9

Base Profit

12.0

8.9

-3.1

Asset-related Gain/Loss

4.4

1.5

-2.8

Credit Costs

1.8

2.3

+0.4

Recurring Income

14.3

5.3

-9.0

Segment Profit

11.6

7.3

-4.3

Gross Profit◼

Gross profit decreased YoY due to impairment losses related to a solar power
generation project in Japan, the temporary expenses in infrastructure business,
negative effects of adjusting fiscal period associated with the reorganization ofsubsidiaries, etc., despite an increase in the gains on sale of assets.

◼

Segment profit decreased YoY due to decreases in gross profit and in profits fromequity-method investments and an absence of gain on sales of equity interests ininfrastructure business in FYE3/2023, etc., despite a decrease in tax expenses.

Gross Profit by Quarter (Billion Yen)
New Transactions Volume

Segment Assets

35.8

22.8

-12.9

FYE3/2023

FYE3/2024

Change from
FYE3/2023

433.2

416.6

-16.6

Renewable Energy Finance

92.9

76.6

-16.2

Renewable Energy Business

295.7

288.5

-7.1

Domestic

219.4

206.6

-12.8

Overseas

76.2

81.9

+5.6

44.6

51.3

+6.6

Other

Base profit ベース利益
Gain/Loss売却損益
on Sales

3.2
0.8
2.4

-0.1

5.2

4.1
0.5

3.7

3.6

3.7

3.0
1.8

2.1

減損
Impairment Loss

1.8

5.2

2.6

3.4

3.0

3.4

4.7
0.5
-5.8

1Q

2Q

3Q

FYE3/2023

4Q

1Q

2Q

3Q

4Q

FYE3/2024
13

Environment & Energy (2)Equity-owned Power Generation Capacity of Renewable Energy
Business*1 (MW)

Total
Solar Power
Domestic
Overseas
Wind Power
Domestic
Overseas
Other

FYE3/2023

FYE3/2024

Change from
FYE3/2023

1,366
1,020
990
30
340
193
147
4

1,293
920
904
16
343
196
147
29

-72
-100
-86
-13
+3
+3
+24

Equity-owned Power Generation Capacity of Renewable Energy
Business (FYE3/2024)(1) Capacity in Operation
Other
その他
2.2%

Change in Equity-owned Power Generation Capacity of Renewable
Energy Business
Future Policy
Domestic

Aim for stable electric power supply by expanding ourpower generation capacity, targeting approx. 2.5GW ofequity-owned power generation capacity by the end of
FYE3/2032

Overseas

Accelerate business development by strengthening
development functions, etc.

Investment completed in April 2024
(Note) EE became an equity-method affiliate from 1Q FYE3/2025(2) Capacity Including Projects
under Development
Other
その他
1.9%

1.5
1.1GW 1.2GW

GW*2

1.9GW
EE*3

1.3GW 1.2GW

Domestic
Approx.

2.5GW

0.8GW

Wind
風力
Power
26.6%

Wind
風力
Power
31.6%

Total

1.2GW

Solar
太陽光
Power
71.2%

Overseas
Domestic

Total

1.5GW*2

Solar
太陽光
Power
66.5%

End of
End of20/3期末21/3期末FYE3/2020 FYE3/2021

End of22/3期末FYE3/2022

End of23/3期末FYE3/2023

End of
FYE3/2024

End of 1Q
25/3期1Q末FYE3/2025(Forecast)End of32/3期末FYE3/2032(Goal)

Capacity Including Projects
under Development*2 Forecasted capacity that reflects only projects already concluded but not yet being operated as of the end of
FYE3/2024 (not considering business activities in FYE3/2025 and beyond)*3 Acquired 20% of EE shares on April 16, 2024 (Refer to page 39 for details)
Capacity in Operation*1 Equity-owned power generation capacity in domestic and overseas renewable energy business.
The output corresponds to the segment assets of the domestic renewable energy business and a part of the overseas
renewable energy business (excl. European Energy)

14

Aviation (1)Major Figures (Billion Yen)

Comments
FYE3/2023

FYE3/2024

YoY

Gross Profit

33.6

49.1

+15.5

Base Profit

32.5

44.1

+11.5

Asset-related Gain/Loss

1.0

4.9

+3.9

Credit Costs

3.0

-6.6

-9.7

Recurring Income

9.1

32.3

+23.2

Segment Profit

6.2

27.3

+21.1

195.6

456.3

+260.6

New Transactions Volume◼

Gross profit increased YoY thanks to an increase in leasing revenues
associated with market recovery, increased assets, the improvement ofengine utilization rates, etc., a decrease in impairment losses, etc.

◼

Segment profit increased YoY thanks to an increase in gross profit as well
as a large reversal of allowance for doubtful accounts, a decrease in
exchange revaluation losses related to leasing transactions of aircraft
owned by MHC, etc.

◼

Segment assets increased compared with FYE3/2023 thanks to the
execution of new leasing transactions of aircraft and engines, the impact
of exchange rates, etc.

Gross Profit by Quarter (Billion Yen)
Base profit ベース利益
Gain/Loss売却損益
on Sales

減損
Impairment Loss
17.9

13.8

FYE3/2023

FYE3/2024

Change from
FYE3/2023

1,640.2

2,020.0+379.8

6.7

Aircraft Leasing (JSA)

1,203.6

1,428.5+224.90.6
6.0

Engine Leasing (ELF)

366.5

527.3

+160.7

Aircraft Leasing, etc. (MHC)

70.0

64.1

-5.8

Segment Assets

4.5
0.6
7.9
-4.0

1Q

2Q

8.5
1.0
7.9

4.5

10.6

-0.4

-1.3

3Q

4Q

FYE3/2023

9.0
1.0

9.8
0.2

8.0

9.5

12.2
2.0

4.3

12.8

13.6

-2.6
1Q

2Q

3Q

4Q

FYE3/2024
15

Aviation (2)Owned Aviation-related Assets

Change in the Number of Aircraft Owned by JSA

FYE3/2023
199

Number of Aircraft (JSA)FYE3/2024

Change from
FYE3/2023

220

+21

Aircraft Purchased

13

32

+19

Aircraft Sold

5

11

+6

Average Age (JSA)

4.9 years

5.0 years+0.1 years

Average Remaining Leasing
Term (JSA)

7.1 years

7.2 years+0.1 years

Number of Aircraft Engines
(ELF)

347

411

+64

Ratio of
New Type*2

167機
167
Old Type

New Type*2

Breakdown of Owned Aviation-related Assets (FYE3/2024)(1) Aircraft Assets by Type/Region
Middle East & Others
5.5%(2) Aircraft Engines by Region

Numberof Aircraft
ナローボディ*5
Narrow Body*1
88.6%

Americas
Number 38.6%

of Aircraft
Asia/Oceania
30.0%

101
101機

43.5%
177機
177
100機
100

*1 Single-aisle aircraft mainly used for short-distance flights (A320 series by Airbus, B737 series by Boeing, etc.)*2 Fuel-efficient aircraft that emit less CO2 compared with older models
Models: A220 / A320NEO / A321NEO / A350 / B737MAX / B787

199
199機

94
94機

90機
90

109
109機

220
220機
84
84機

136機
136

77
77機

FYE3/2020
20/3期末FYE3/2021
21/3期末FYE3/2022
22/3期末FYE3/2023
23/3期末FYE3/2024
24/3期末

7.3年
7.3years

7.1years
7.1年

7.2years
7.2年

4.9年
4.9years

5.0years
5.0年

FYE3/2023
23/3期末FYE3/2024
24/3期末Historical Key Figures of Aircraft

6.9years
6.9年

Number Americas
of Engines 46.1%
Asia/Oceania
26.8%

191機
191

66機
66

7.2年
7.2years
Average
Remaining
Leasing Term

Europe
19.1%

50.8%

61.8%

97機
97

Middle East & Others
8.0%

その他
Other
11.4%
Europe
25.9%

39.5%

54.8%

4.1years
4.1年

4.5years
4.5年

3.5years
3.5年
Average Age

FYE3/2020
20/3期末FYE3/2021
21/3期末FYE3/2022
22/3期末16

Logistics (1)Major Figures (Billion Yen)

Comments
FYE3/2023

FYE3/2024

YoY

Gross Profit

32.1

35.5

+3.4

Base Profit

32.2

30.2

-1.9

Asset-related Gain/Loss

0.0

5.2

+5.3

Credit Costs

0.0

0.0

0.0

Recurring Income

19.9

22.9

+2.9

Segment Profit

15.3

17.8

+2.4

◼

◼

◼

Segment profit increased YoY thanks to an increase in gains on sales ofowned assets (mainly shipping), etc., despite a decrease in leasing
revenue associated with the normalization of utilization rates in marine
containers after a period of overheated market conditions.
New transactions volume decreased YoY due to the suppression of
execution of new investments in marine containers in consideration ofmarket conditions.
Segment assets increased compared with FYE3/2023 thanks to theimpact of exchange rates, despite a decrease in new transactions volume
and the sale of shipping assets.

Gross Profit by Quarter (Billion Yen)
Base profit ベース利益
Gain/Loss売却損益
on SalesNew Transactions Volume

55.3

38.3

-17.0

FYE3/2023

FYE3/2024

Change from
FYE3/2023

1,092.9

1,099.0+6.1

Marine Containers

793.0

782.6

-10.3

Railway Freight Cars

256.8

290.6

+33.7

Shipping

43.0

25.7

-17.2

Segment Assets

8.5
1.2

8.8
0.3

7.3

8.4

7.1
0.5

9.0

Impairment Loss
減損

9.5

9.0

9.5

7.5
0.3

1.9

1.5

1.5

7.4
0.1

7.3

7.5

7.4

7.9

7.2

4Q

1Q

2Q

3Q

4Q

-2.4

1Q

2Q

3Q

FYE3/2023

FYE3/2024
17

Logistics (2)Change in the Number of Railway Freight Cars

Owned Logistics-related Assets
FYE3/2023

FYE3/2024

Change from
FYE3/2023

Marine Container Fleet(TEU 1,000*1)

3,412

3,246

-165

Marine Container Fleet(CEU 1,000*2)

3,610

3,423

-187

Number ofRailway Freight Cars

22,654

21,931-723

16,544FYE3/2020
20/3期末Change in the Number of Marine Container Fleet (CEU 1,000)*3

20,554

21,81822,654

21,931FYE3/2021
21/3期末FYE3/2022
22/3期末FYE3/2023
23/3期末FYE3/2024
24/3期末Breakdown of Owned Logistics-related Assets (FYE3/2024)(1) Marine Container Fleet by Asset Type

CAI

3,221

3,386

1,642

1,727

Special Container
5.6%

3,701
BIL

1,578

3,610

3,423

ReeferContainer
18.7%

Other
28.8%

3,423 K
CEU

1,659

Dry Container
75.7%

FYE3/2020
20/3期末(2) Railway Freight Cars by Asset TypeFYE3/2021
21/3期末FYE3/2022
22/3期末FYE3/2023
23/3期末21,931
Railcars

Coveredhopper
45.7%

Tank Cars
25.5%

FYE3/2024
24/3期末*1 TEU: Twenty Foot Equivalent Unit (unit equivalent to the capacity of a 20-feet long dry container)*2 CEU: Cost Equivalent Unit (conversion unit for various containers volumes, calculated on the basis of 1 CEU = average historical price of a newly built 20-foot dry container)*3 CAI’s figures for FYE3/2020 and FYE3/2021 are for reference because they are before being acquired

18

Real Estate (1)Major Figures (Billion Yen)

Comments◼

Gross profit decreased YoY due to fair value losses*2 in line with the worsening
conditions in the real estate market in the U.S. and the negative impact of thedeconsolidation of DAF, etc., despite an increase in gains on sales of owned assets.

-7.1

◼

Recurring income increased YoY thanks to a decrease in credit costs, etc.

20.1

+6.1

◼

2.2

0.0

-2.3

Segment profit decreased YoY due to an increase in tax expenses, etc., despite anincrease in recurring income and extraordinary income as a result of making CPD awholly-owned subsidiary.

Recurring Income

13.6

15.9

+2.2

◼

Segment Profit

12.6

11.9

-0.7

New Transactions Volume

87.9

152.0

+64.1

Segment assets increased compared with FYE 3/2023 thanks to making CPD awholly-owned subsidiary, the increase in new transactions volume in the investment
business and the finance business, etc.

FYE3/2023

FYE3/2024

Change from
FYE3/2023

447.2

525.4

+78.1

*1

462.2

+77.6

Finance Business155.4*1

177.7

+22.3

Investment Business157.1*1

209.3

+52.1

Rental Business
Overseas(Finance Business Only)
Goodwill, etc.

71.9

75.1

+3.2

59.1*1

48.1

-11.0

4.0

3.4*1

15.0

+11.5

-0.2

FYE3/2023

FYE3/2024

YoY

Gross Profit

24.9

23.8

-1.0

Base Profit

10.9

3.7

Asset-related Gain/Loss

14.0

Credit Costs

Segment Assets
Domestic

384.6*1 Corrected some figures from the previous year due to changes of definitions(1) The category of overseas transactions (3.7 billion yen) booked at the Head Office was changed from “Domestic(Finance Business)” to “Overseas”(2) The category of equity method investments for operating companies (1.1 billion yen) was changed from “Investment
Business” to “Goodwill, etc.”
Domestic: 389.4 ⇒ 384.6 (-4.8), Domestic (Finance Business): 159.2 ⇒ 155.4 (-3.7),
Investment Business: 158.2 ⇒ 157.1 (-1.1), Overseas: 55.4 ⇒ 59.1 (+3.7), Goodwill, etc.: 2.3 ⇒ 3.4 (+1.1)*2 Losses are not included in asset-related gain/loss as those are fair value losses related to investees and borrowers,
not impairment losses (refer to page 1 for details of asset-related gain/loss)

Gross Profit by Quarter (Billion Yen)
Base Profit(Excl. Fair Value Losses)
Fair Value
Losses
ベース利益（時価評価損を除く）
時価評価損

Gain/Loss
売却損益on Sales

11.1
8.1
4.2

1Q

9.8
6.6
3.2

3.3

2Q

4.7
5.3
1.4
3.8

3Q

FYE3/2023

4.9

6.7

2.6

2.5
-2.7

3.0

4Q

1Q

10.6

0.3
3.2

2.4
3.3
-0.8

-5.5
2Q

3Q

3.8
-3.4
4Q

FYE3/2024
19

Real Estate (2)Segment Assets in Real Estate by Region (FYE3/2024)
Other than the U.S.
0.7%

Domestic Segment Assets by Type of Assets (FYE3/2024)

Goodwill, etc.
2.9%

U.S.
8.4%
Other
7.7%
NagoyaTotal
Metropolitan
525.4
District
Bn Yen11.0%
Osaka
Metropolitan
District
14.3%

Tokyo
Metropolitan
District
55.0%

Residence
7.4%

Domestic

JPY462.2Bn (88%)

Overseas

JPY48.1Bn (9%)

Goodwill, etc.

JPY 15.0Bn (3%)

Total

その他
Other
17%
17.5%

Office
オフィス
22.0%
22%

Total
44.1
Bn Yen Residence
レジデンス
61%
60.5%

OfficeCommercial
facility
10.1%

Hotel
14.7%

JPY34.4Bn (78%)

Total

JPY44.1Bn (100%)

Office44.9%

Overview of the U.S. Real Estate BusinessBusiness
Description✓ Mainly engaged in Finance business (mezzanine loan,
equity, etc.)

Asset
Composition✓ Segment assets in the U.S. real estate business are worth
44.1 billion yen.
✓ The assets of the office market, whose condition has been
worsening in the U.S., are worth 9.7 billion yen, 1.8% of theReal Estate segment assets and 0.1% of MHC’s total
segment assets.

JPY9.7Bn (22%)

Residenceand Other

Total
462.2
Bn YenLogistics
19.6%

JPY525.4Bn (100%)

Segment Assets in the U.S. by Asset Type (FYE3/2024)

Other
3.3%

20

Mobility
Major Figures (Billion Yen)

Comments
FYE3/2023

FYE3/2024

YoY

Gross Profit

9.0

1.2

-7.7

Credit Costs

0.0

0.0

0.0

Recurring Income

4.1

2.3

-1.7

Segment Profit

3.7

2.7

-1.0

31.8

14.3

-17.4

FYE3/2023

FYE3/2024

Change from
FYE3/2023

41.4

51.9

+10.5

FYE3/2023

FYE3/2024

Change from
FYE3/2023

Mobility Segment*1

355

353

-2

【Reference】
Total of MHC Group*2

-

638

-

New Transactions Volume

Segment Assets◼

Each profit item decreased YoY due to the negative effects of thedeconsolidation of CA associated with the reorganization of subsidiaries,etc.

◼

New transactions volume decreased YoY due to the deconsolidation ofCA, etc.

◼

Segment assets increased compared with FYE3/2023 thanks to thetransfer of business*3 to the auto leasing company in Thailand, which was
newly established in the previous fiscal year.

Number of Operational Vehicles (Unit: 1,000)*1 Including the number of operational vehicles of equity-method affiliates.
*2 Total including the number of operational vehicles belongs to other than the Mobility segment (reference value).
*3 The auto leasing business was transferred from Bangkok Mitsubishi HC Capital, which belongs to the Global Business segment(Refer to the release on February 1, 2023, “Mitsubishi HC Capital and ALD Agree to Establish an Auto Leasing Joint Venture in Thailand”)

21IV. Financial Forecast for FYE3/2025

Back to Index

Financial Forecast for FYE3/2025✓ Net income for FYE3/2025 is estimated to increase by 11.1 billion yen (9.0%) YoY to 135.0 billion yen. Net income is estimated to increase
thanks to the growth in Aviation and other businesses, an absence in large losses recorded in FYE3/2024, etc., despite a reactionary fall in
extraordinary income recorded in FYE3/2024.
✓ ROA in FYE3/2025 is estimated to increase by 0.1pt YoY to 1.2% and ROE is estimated to increase by 0.3pt YoY to 8.0%.
✓ The annual dividend per share will increase by 3 yen YoY to 40 yen (interim dividend: 20 yen, year-end dividend: 20 yen),increasing for 26 consecutive years. We estimate the payout ratio of 42.5%.
FYE3/2024

FYE3/2025*1

YoY Change (%)

1

Net Income Attributable to
Owners of the Parent(Billion Yen)

123.8

135.0

+11.1
(+9.0%)

2

ROA

1.1%

1.2%

+0.1pt

3

ROE

7.7%

8.0%

+0.3pt4

DPS〈Payout Ratio〉¥37*2〈42.9%〉¥40〈42.5%〉+¥3〈-0.4pt〉*1 The assumed foreign exchange rates are $1=¥140, £1=¥170*2 The fiscal year-end dividend for FYE3/2024 will be resolved in the Board of Directors meeting to be held on May 22, 2024.

23

Increase/Decrease Factors in Net Income (Forecast)(1) Income Gain*: Up ¥41.9Bn

Increase/Decrease in Net Income(Billion Yen)

(1)
+41.9

(2)
+9.5

(3)
+2.1

Net
Income
+11.1

-5.7
-14.6
(5)

(4)

135.0

123.8

FYE3/2024
2024/3期(Actual)（実績）(Billion Yen)

(3) Credit Costs: Down ¥2.1Bn◼ A decrease in credit costs in the Americas of Global Business◼ An absence of the large reversal of allowance for doubtful accounts in FYE3/2024
in Aviation business

Negative Factor

IncomeCredit Operating
インカム Asset-related
アセット 貸倒関連
経費*
Gain
Gain/Loss
Costs
Expenses
ゲイン* 関連損益
費用(2) Asset-related Gain/Loss: Up ¥9.5Bn◼ An increase in gains on sales of owned assets in Aviation business◼ An absence of impairment losses recorded in FYE3/2024 in Environment & Energy
business◼ A reactionary fall in large sales gains recorded in FYE3/2024 in Real Estatebusiness

-22.4
(6)

Positive Factor◼ Business growth mainly in Aviation, Environment & Energy and Customer Solutions
businesses◼ A decrease in losses in the U.S. real estate businesses

Extraordinary
Other
FYE3/2025
特別損益 その他
2025/3期
Income/ (Tax Expenses, (Forecast)
（予想）
Loss
etc.)

FYE3/2024 (Actual)

FYE3/2025 (Forecast)(1) Income Gain*

349.0

391.0

(2) Asset-related Gain/Loss

34.3

43.9

(3) Credit Costs

19.5

17.3

(4) Operating Expenses

212.3

218.0

(5) Extraordinary Income/Loss

16.0

1.3

(6) Other (Tax Expenses, etc.)

43.8

66.2

(4) Operating Expenses: UP ¥5.7Bn◼ An increase in expenses associated with sales promotion activities(5) Extraordinary Income/Loss: Down ¥14.6Bn◼ An absence of the temporary income in FYE3/2024 in Real Estate businesses◼ A reactionary fall in gains on sales of strategic shareholdings, etc. recorded in
Customer Solutions businesses, etc. in FYE3/2024(6) Other (Tax Expenses, etc.): Up ¥22.4Bn◼ An increase in tax expenses as a result of an increase in income◼ An absence of the effects of a decrease in tax expenses in FYE3/2024, etc.

(Note) Figures shown in (1) through (5) are on a pre-tax basis. Taxes are included in (6)* Base profit + non-operating income/loss (however, non-operating income/loss do not include gains on bad debts recovered)24Change in Major Figures✓ The Medium-term Management Plan (“2025 MTMP”) covering the three-year period from FYE3/2024 was formulated and announced in May 2023.
✓ The financial targets for the final fiscal year of the 2025 MTMP (FYE3/2026) are net income of 160.0 billion yen, ROA of approx. 1.5%, andROE of approx. 10%.

Change in Net Income*1 and ROE*2
approx. 10%
8.8%

9.1%

8.9%
8.0%

7.3%

ROE*2

8.0%

8.2%

7.7%

8.0%

116.2

123.8

135.0

FYE3/2023
2023/3期

FYE3/2024
2024/3期

FYE3/2025
2025/3期…
(Forecast)

Net Income*1(Billion Yen)

86.0

95.7

88.1

101.4

87.3

99.4

FYE3/20172017/3期

FYE3/20182018/3期

FYE3/20192019/3期

FYE3/2020
2020/3期

FYE3/2021
2021/3期

FYE3/2022
2022/3期

FYE3/2017

FYE3/2018

FYE3/2019

FYE3/2020

FYE3/2021

FYE3/2022

FYE3/2023

FYE3/2024

FYE3/2025(Forecast)

YoY(Change)

160.0

FYE3/2026
2026/3期…
(Final Fiscal
Year of MTMP)FYE3/2026(Final Fiscal Year of MTMP)

1Net Income*1 (Bn Yen)

86.0

95.7

88.1

101.4

87.3

99.4

116.2

123.8

135.0

+11.1

160.0

2

ROA*2

1.0%

1.1%

1.0%

1.0%

0.9%

1.0%

1.1%

1.1%

1.2%

+0.1ptApprox. 1.5%

3

ROE*2

8.8%

9.1%

8.0%

8.9%

7.3%

8.0%

8.2%

7.7%

8.0%

+0.3ptApprox. 10%

4

DPS*2

¥13.0

¥18.0

¥23.5

¥25.0

¥25.5

¥28.0

¥33.0

¥37.0

¥40.0

+¥3.0

-

5

Payout Ratio*2

21.8%

25.2%

30.4%

31.5%

41.1%

40.4%

40.8%

42.9%

42.5%

-0.4pt40% or more

*1 Figures for FYE3/2017 to FYE3/2021 are simple sums of MUL’s (net income attributable to owners of the parent under J-GAAP) and HC’s (net income attributable to owners of the parent under IFRS)*2 MUL’s results from FYE3/2017 to FYE3/2021

25

Dividend Forecast for FYE3/2025✓ We will return profits to shareholders by distributing dividends and increase the total amount of dividend payments through profit growth.
The payout ratio during the 2025 MTMP is targeted to be 40% or more.
✓ The annual dividend per share for FYE3/2025 is forecasted to be 40 yen, up 3 yen YoY. (interim dividend: 20 yen, year-end dividend: 20 yen).

Change in Dividend
57.4%
41.1% 40.4% 40.8% 42.9% 42.5%
30.4%

31.5%

25.2%

PayoutRatio*

20.7%

17.4% 15.5% 16.0% 18.9% 19.2%

20.0% 21.8%

11.1%
Dividend per Share*
(Yen)
4.2

4.6

23.5
4.8

5.0

6.0

6.5

8.0

9.5

12.3

13.0

25.0

25.5

28.0

33.0

37.0

40.0

18.0

FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
3/2008 3/2009 3/2010 3/2011 3/2012 3/2013 3/2014 3/2015 3/2016 3/2017 3/2018 3/2019 3/2020 3/2021 3/2022 3/2023 3/2024 3/2025(Forecast)* MUL’s results from FYE3/2008 to FYE3/2021

26

V. Progress of the Medium-term Management Plan (2025 MTMP)

Back to Index

Initiatives for the Medium- to Long-term
Enhancement of Corporate Value✓ Aim to enhance medium- to long-term corporate value through the achievement of ROE that continues to exceed the cost of shareholder
equity and the enhancement of PER by fostering expectations for growth and reducing the cost of shareholder equity. With the achievementof the goals of the 2025 MTMP as a milestone, we will appropriately report on our progress to markets and engage in dialogues.
Relationship between the Road to Enhancement of Corporate Value and the 2025 MTMP

Theoretical PBR = Expected ROE x Expected PER= Expected ROE x⚫ Financial targets⚫ Business strategies by segment
Raise market expectation
for growth⚫ Key themes across segments⚫ Frameworks to promote transformation

Gradually raise the PER level

Reduce the cost of shareholder
equity with appropriate
engagement strategies

Expand financial
capital by accumulating
non-financial capital⚫ Non-financial targets⚫ Value creation process (expansion offinancial capital through the accumulationof non-financial capital)⚫ Corporate functions strategies

Ongoing increase of PBR⚫ Financial strategies that support theevolution and layering of business model

Dialogues with markets⚫ Evolution and layering of business models

Integrated promotion of each initiative

Achieve ROE that continues to
exceed the cost of shareholder
equity with an increase
to absolute profit

Enhancement of medium- to long-term corporate value

2025 MTMP Strategies

1
Cost of
Expected profit
shareholder equity
growth rate
(Denominator) Cost of shareholder
equity in a broad sense:currently approx. 10%

MHC’s Priorities
Probability of achieving the 2025 MTMP

ROE

Realization of profitability exceeding the cost ofshareholder equity⚫ Achievement of an ROE of approximately 10%⚫ Portfolio management through the analysis of the
return on capital per business, etc.
Enhancement of stakeholders’ understanding of ourbusiness⚫ IR for each segment, etc.

PBR

PER

Fostering of expectations for growth⚫ Promotion of the evolution and layering of businessmodels, etc.
Reduction of the cost of shareholder equity⚫ Reduction of ESG risks, enhancement of disclosures
on non-financial and other information, dialogues
with markets, etc.
28

Progress of the 2025 MTMP▶

Results▶
▶

▶

IssuesDirectionfor
FY20242025

▶

▶
▶
▶
▶

Achieved the financial targets for the first year of the 2025 MTMP, excluding ROE. Aviation and Logistics have driven theentire business.
Steady progress has been made on non-financial targets as well.
Replacement of assets has progressed smoothly toward the transformation of our business portfolio and the improvementof capital efficiency.
▪ New investment: Investment in European Energy, making CPD a wholly-owned subsidiary, etc.
▪ Sale/withdrawal: Sale of Shutoken Leasing and DFL Lease, sale of Sekisui Leasing (planned), withdrawal from the credit cardbusiness for personal customers, sales of strategic shareholdings, etc.
Lack of speed in the progress of the evolution and layering of business models (shift to business with high added value
and ROA, etc.).
In particular, the issue for the future is the generation of businesses that significantly contribute to profit in Customer
Solutions.
In the Americas of Global Business, credit costs increased in its main business, sales finance business for commercial
trucks.
Recovering its profitability is a pressing task.

Achieve various financial and non-financial targets and continue to raise PBR and corporate value.
Realize the evolution and layering of business models at an early stage and promote various initiatives to expand profit inCustomer Solutions.
In the Americas of Global Business, recover and expand profitability at an early stage by reviewing the risk management
framework and diversifying and restructuring business portfolios.
Move forward with “sowing seeds” looking ahead to the next MTMP by accelerating various initiatives relating to key
themes across segments and frameworks to promote transformation.
29

Financial Targets✓ Financial targets for FY2025 remain unchanged from the ones externally announced on May 15, 2023; net income of JPY160.0Bn,
an ROA of approximately 1.5%, and an ROE of approximately 10%. By segment, Aviation and Logistics, of which markets have been strong,
will drive profit growth, and Environment & Energy and Real Estate, which have steadily executed strategies, will support profit growth.
Thus, we expect to achieve profit growth on a company-wide basis.
✓ We will promote the evolution and layering of business models by enhancing the profitability of existing businesses, investing in new
businesses, and selling/withdrawing from low-profit businesses to improve ROA in all segments.
Net Income (Billion Yen)

ROA・ROE
160.0

99.4

116.2

123.8

ROA

ROE

Approx. 10%

135.0
8.2%

8.0%
1.0%

1.1%

7.7%

8.0%

1.1%

1.2%

Approx. 1.5%

(Reference) ROA by Segment
Segment

FY2022(Result)

FY2023(Result)

FY2025(Target)Customer
Solutions

1.1%

1.2%

1.3%

FY2021 FY2022 FY2023 FY2024 FY2025
ResultResultResult Forecast Target

FY2021 FY2022 FY2023 FY2024 FY2025
ResultResultResult Forecast Target

GlobalBusiness

1.1%

0.5%

1.3%

Payout Ratio/Financial Soundness

PBR (Reference)

5 Business
Divisions*

1.3%

1.6%

1.8%

Total

1.1%

1.1% Approx. 1.5%

FY2023Plan

FY2024-2025
TargetPayout Ratio

42.9%

40% or more

RatingA

Maintaining A

0.90 (times)
0.62

0.64

End22年of Mar.
2022

Endof Mar.
23年
2023

3月末

3月末

* A weighted average of Environment & Energy, Aviation, Logistics, Real Estate,
and Mobility

End24年of Mar.
2024

3月末

30

Non-financial Targets✓ Steady progress has been made on non-financial targets. Qualitative targets for DX-related items have been quantified. We continue
initiatives to achieve targets and the quantification of the qualitative targets.
KPI (Italics in parentheses: target scope

Targets (2025 MTMP)

FY2023 Results

Assessment

Level of fulfillmentof a talent portfolio in line with
経営戦略に合致した
our management
strategies (non-consolidated)
人材ポートフォリオの充足度（単体）

Formulate the talent portfolio framework andvisualize the level of fulfillment

Conducted an assessment on
approx. 1,200 employees〇

Results of the employee engagement survey
従業員エンゲージメントサーベイ結果（単体）(non-consolidated)

Refine the survey content andenhance analysis

Conducted a comprehensive review of theengagement survey questions〇

DX
assessment*
DXアセスメント
Ratio of「スタンダード」レベル以上の人材比率
standard or higher level talent (non-consolidated)
（単体）

80%
or more80%以上

46.8% (+22.0pt YoY)〇

Monthly average
overtime hours (operational efficiency)
月平均残業時間（業務効率）(non-consolidated)（単体）

1414時間以下
hours or less18 hours and 47 minutes(-0.6 hours YoY)▲

Rate of annual paid holidays taken by employees
有給休暇取得率（単体）(non-consolidated)

70% or more

74.4% (+5.7pt YoY)◎

Manufacturing
CapitalGHG emissions
amount (Scope 3)
GHG排出量（Scope3）(consolidated)（連結）

Analyze the categories which have a major
impact and visualize Scope 3 emissions

Investigated the actual status and verified themethod regarding each asset and transaction〇

NaturalCapitalGHG emissions
amount (Scope1,2)
GHG排出量（Scope1,2）(consolidated)（連結）-55% in FY2030 vs. FY2019
and net zero in FY2050

FY2022 result: -31.3%(FY2023 result is being calculated)〇

Social and
Relation
CapitalEnergyconsumption (domestic)
エネルギー使用量（国内）(non-consolidated+ domestic Group companies)（単体＋国内グループ会社）-1% YoY continually

FY2022 result: -16.9%(FY2023 result is being calculated)◎

Talent Base/Know-how(consolidated or non-consolidated))

Human
CapitalAsset Base/
External
RelationshipIntellectual
Capital: New KPIs and targets(Existing KPIs and targets were updated)* DX assessment: A tool provided by an external vendor for measuring levels of DX literacy. Employees are categorized into three levels: beginner, standard, and expert

31Business Strategies (Key Themes across Segments)✓ These four key themes contribute to “sowing seeds,” a key word in the 2025 MTMP. The initiatives are largely progressing steadily,
although timeframes for generating profits differ per theme.
✓ Collaboration between segments has been stimulated through initiatives for each theme.

HydrogenFuture Vision
As a leading holder of renewable energy power sources in Japan, we willcontribute to building a hydrogen supply chain with green hydrogen at thecore

Major Initiatives in FY2023

EVs
Future Vision
Contribute to realizing a carbon-neutral society based on EVs

Major Initiatives in FY2023• Set individual themes for domains with demand for hydrogen. Considered theorigination of verification projects, etc. together with partner companies, foreach theme of airports/aviation, urban development, decentralized
autonomous communities (remote islands, etc.), logistics industry, etc.

• Began providing an integrated EV service that makes comprehensive
proposals in Japan and overseas regarding the introduction and the operationof EVs and charging equipment, parking lots where charging equipment canbe installed, and the supply of renewable energy.

Logistics

Decarbonization Solutions

Future Vision
To address social issues and customer needs in logistics supply chains,develop and provide optimal logistics solutions by collaborating withleading partners and thereby achieve a full line-up of logistics services

Major Initiatives in FY2023• Collaborated with logistics solutions partners such as LOGISTEED and NEXT
Logistics Japan and made joint proposals to MHC’s customers.

Future Vision
Evolve into an integrated service provider to realize a decarbonizedsociety

Major Initiatives in FY2023• Developed and proposed an integrated service for managing customers’
energy and facilities and began providing a service to help customers
formulate a CO2 reduction roadmap.
32

Frameworks to Promote Transformation✓ Employees’ awareness of transformation has been steadily fostered ( (1) “Lay” the foundation of transformation). Regarding the initiatives toactually create and promote transformation ( (2) “Create” transformation, (3) “Promote” transformation), we launched an intra-entrepreneurshipprogram and established and changed various rules in FY2023, and plan to further expand such initiatives in FY2024 and beyond.

(1) “Lay” the foundation of transformation

Foster all employees’ awareness of transformation.

FY2023 Results (Major Initiatives)

FY2024-2025 Plan (Major Initiatives)• Conducted a survey on the 2025 MTMP. Based on the survey results, implemented
initiatives to foster awareness of transformation.
• Enhanced opportunities to transmit information from management to employees by
opening a blog of the President & CEO, etc.

(2) “Create” transformation

Develop frameworks so that efforts contributing to transformation can be actively launched.

FY2023 Results (Major Initiatives)

FY2024-2025 Plan (Major Initiatives)• Implemented the first round of the intra-entrepreneurship program in the Zero-Gravity Venture
Lab (called “ZERO-GRA”) and reinforced initiatives including the program to seek business ideas.
• Began implementing a new organizational evaluation system to promote transformation.

(3) “Promote” transformation• Implement initiatives to save time through business process re-engineering, etc.
• Under the leadership of Division Head, each division implements initiatives to promotetransformation.

• Implement the second round of the intra-entrepreneurship program in addition to verifications
toward the commercialization of the first round of projects. Consider the further expansion andimprovement of the initiative.
• Consider the further improvement of the organizational evaluation system.

Develop an agile discussion framework and promote transformation by advancing efficientdecision-making processes and the delegation of authority that comes with responsibility, etc.

FY2023 Results (Major Initiatives)• Established the Innovation Investment Fund (JPY10.0Bn), an in-house investment fund targeted
at startups (used for investments worth JPY0.69Bn in seven projects).
• Promoted the delegation of authority to front offices by revising the standards for items to besubmitted to the Board of Directors (aiming to spend more time on deliberating important themes.)

FY2024-2025 Plan (Major Initiatives)• Consider expanding and improving the Innovation Investment Fund.
• Continue to revise various internal regulations and restructure organizations with a view todecentralization and delegation of authority.
33

【Reference (1)】 2025 MTMP(Content Announced on May 15, 2023)✓ The 2025 MTMP is positioned as the “hop” plan toward achieving Our 10-year Vision. We will promote the evolution and layering ofbusiness models while steadily engaging in “sowing seeds” for new domains and “gaining a solid foothold” by redeveloping and redefining
existing domains. Thus, we aim to achieve the medium- to long-term enhancement of our corporate value.
Our 10-year Vision
Together we innovate,challenge and explore thefrontiers of the future2031 MTMP(FY2029-2031)

Outline of the 2025 MTMP
▶ Increase profitability by promoting the evolution and layering of businessmodels (the accumulation of business types ③, ④, and ⑤ (see thefigure on the right) is a key theme).
▶ Aim to achieve an optimal balance sheet based on well-balanced
growth potential, return on capital, and financial soundness.
▶ “Sowing seeds” and “gaining a solid foothold” leading to a leap to the“step” and “jump” plans are the keywords.

[Vision of the Evolution and Layering of Business Models]Five Business Models
⑤
④
③
②
①

Asset utilization business
Data utilization platform services
Finance + services
Asset finance
Customer finance[Jump]C)

Major Strategies
2028 MTMP(FY2026-2028)[Step]

2025 MTMP(FY2023-2025)[Hop]▶ Business strategies
Implement Company-wide business strategies and business strategies
by segment based on the evolution and layering of business models.
▶ Corporate functions strategies
Foster and secure talent and bolster the financial base and internalorganizational base.
▶ Frameworks to promote transformation
Promote the awareness reform of employees to achieve transformation.

Targets(Vertical axis: Size of assets)

③
B)
A)

⑤
④

②

①
(Horizontal axis: time frame)A) Customer baseEnhance profitability and efficiency of existing businessesB) Shift existing businesses to high value-added servicesC) Develop new businesses

Financial:
Net income: JPY160.0Bn, ROA: approx. 1.5%, ROE: approx. 10% (Payout ratio of 40% or more, maintaining A ratings)
Non-financial: GHG emissions (Scope1, 2): FY2030：-55% in FY2030 vs. FY2019 and net zero in FY2050
Formulate a talent portfolio framework and visualize the level of fulfillment, etc.
34

【Reference (2)】Business Strategies (Directions by Segment)
Customer Solutions• Enhance profitability by launching many new services for which we have conducted
PoC*1 with each partner company.
• We will accelerate the evolution and layering of business models by creating various
solutions that help us provide added value to customers and resolve their management
issues, and promoting internal collaboration on and the dissemination of such solutions.
• Reform sales processes by improving accuracy and efficiency of sales activities throughthe development/usage of a new CRM*2 and the reallocation of human resources.
*1 PoC (Proof of Concept): Verification of feasibility of new ideas and technologies*2 CRM (Customer Relationship Management): Customer information management system

Global Business[Europe]• Promote the accumulation of high-quality new assets in the decarbonization domain andother businesses as well as profit expansion strategies, such as an increase in gains onsales of used cars.
• Expand interest rate margins by reducing funding costs, etc.
[Americas]• Expand margins based on an improved interest rate environment as well as throughinitiatives such as revising pricing standards, etc.
• In the sales finance business for commercial trucks, review the models and processes tocontrol credit risks in consideration of third-party assessments.
• Diversify and restructure our business portfolio to achieve appropriate risks and returns.

Aviation• Promote sales of assets held by JSA and ELF to Japanese large-lot investors.
• Enhance profitability by strengthening the value chain of the aircraft leasing, engine
leasing, and parts sales businesses.
• Expand the high-quality portfolio by executing inorganic strategies.

Logistics• Accumulate transactions by executing more new investments in the container leasing
business, and maintain high utilization rates by further sophisticating operations.
• Acquire highly profitable and long-term transactions in the North American freight railcar
leasing business and continue to generate gains on sales by strengthening O&D
operations.

Environment & Energy• Further expand our domestic power generating capacity (solar, wind power, etc.)(targeting over 1,000MW by the end of FY2024).
• Accelerate sales of domestic solar and biomass power generation businesses in which
we have a minority stake.
• Develop renewable energy power generation businesses in Europe through European
Energy, in which we acquired a 20% stake in April 2024.
• Replace our portfolio by selling overseas infrastructure assets.

Real Estate• Increase profit generated during leasing terms by enhancing development andcapabilities to enhance value in Japan and continue to generate gains on sales of assets.
• O&D*3 in domestic finance businesses and restructuring of the Division’s portfolio.
• Reduce losses and collect the maximum amount of debts in problematic U.S. projects.
*3 O&D (Origination & Distribution): A business model for real estate non-recourse loans aiming toincrease profitability through sales or sub-participation of loans in part to external parties such as bydividing loans into senior loan portions and subordinated loan portions.

Mobility• Expand domestic and overseas EV integrated services.
• Generate cost synergies and strengthen sales capabilities from the merger of the twodomestic auto leasing companies.
35

Ⅵ. Reference Information

Back to IndexMajor Business Topics in FYE3/2024 (1): Evolution and layering of business models: Frameworks to promote transformation: Key themes across segments

April 2023
✓ Announced the conclusion of a virtual PPA (an agreement
to transfer non-fossil certificates related to renewableelectricity) between a group company, Mitsubishi HC
Capital Energy and Tokyo Metro.

May 2023✓ Made CenterPoint Development (CPD) a group company engaged in
the development of logistics facilities and asset management businessspecializing in logistics facilities, a wholly-owned subsidiary.
1
1 Multi-tenant logistics facility,
CPD Nagoya Minato

2✓ Announced the launch of the renewable energy aggregation business at our group company HSE (prediction of renewable energy
power generation and preparation of power generation plans, and provision of electricity and non-fossil value based on them).

June 2023✓ Announced the establishment of “Innovation Investment Fund” with a total of 10.0 billion yen offunds available for investments in startups with an aim to promote creation of new services anddevelopment of new businesses. (Please refer to page 41 for details.)
2 Yokohama-machi Hibaritaira
Wind Power Plant (Aomori Pref.)August 2023
✓ Announced to start business operation in Silicon Valley in the U.S. to strengthen the business intelligence function as part of theinnovation initiatives.

September 2023

September 2023

✓ Announced the business alliance with Horizon Ocean
Management with the aim of stabilizing and improving
efficiency of the O&M services (maintenance, inspections, andrepairs) in the offshore wind power generation business.

✓ Mitsubishi HC Capital Energy and Mitsubishi Auto Leasing
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.

3

3 Company EVs introduced by MHC
using the integrated EV service
37

Major Business Topics in FYE3/2024 (2): Evolution and layering of business models

November 2023

: Frameworks to promote transformation✓ Announced the business alliance with Lenovo Japan and Mitsubishi UFJ
Trust and Banking with an aim to provide a comprehensive package tosupport startups, including PC subscription service.

✓ Started offering facial photo collection andauthentication service on a subscription modelwith TOPPAN Edge.

✓ Announced the launch of a verification project using robots in logistics
facilities, as a METI commissioned project, together with BIC CAMERA andYAMAZEN.

✓ Signed a partnership agreement with AeroEdge manufacturing and selling aircraft engine parts
with an aim to enhance the partnership to accelerate DX and SDGs in the aviation industry.

December 2023

: Key themes across segments

December 2023

4

✓ Announced to start a trial for a preventive maintenance service for infrastructure using
an earthworm-like in-pipe crawling robot “Sooha” offered by SoLARIS.

January 2024
✓ Decided to invest in European Energy A/S, a Danish company engaging in renewable
and next-generation energy business (investment was executed in April 2024).

✓ Selected the first projects that passed the final review in the internal startup
program of the Zero-Gravity Venture Lab, an initiative aimed at accelerating
new business development, and officially launched the projects toward theestablishment of a company.

January 2024
✓ Transferred shares of our group companies, DFL Lease and Shutoken Leasing.

February 2024
✓ Announced the launch of a joint venture for renewable energy generation basedon a PPA between the Mitsubishi HC Capital Group, TOKYU and Tokyu Power
Supply and the conclusion of a contract for the first project.
✓ Announced the transfer of shares of our group company Sekisui Leasing.

✓ Announced to establish “Robotics Business
Development Department,” a new organization
dedicated to accelerating development andpromotion of new businesses in the robotics
sector in April 2024.

March 2024
✓ Began full-scale utilization of generative AI at the Company incooperation with Hitachi.

4 Sooha, an in-pipe crawling robotthat mimics the movement of anearthworm, provided by SoLARIS.
38

Investment in a European company engaged in renewable
and next- generation energy businesses (1)Investment in a European Company Engaged in Renewable and Next-Generation Energy Businesses✓ As announced on January 19, 2024, we signed an investment agreement to invest approximately 700 million Euros (approximately 110.0 billion yen*1) in European Energy A/S,a Danish company developing and operating renewable and next-generation energy businesses mainly in Europe, and to acquire 20% of its outstanding shares.
✓ We completed the investment on April 16, 2024, making EE an equity-method affiliate.
Strategic Significance and Objective of This Investment✓ Toward the “Evolution and Layering of Business Models” set forth in the Medium-term Management Plan (2025 MTMP), we have established “the enhancing of development
functions in the renewable energy business” as a core strategy for the Environment & Energy business, and this investment will be the pillar of that strategy.
✓ We have also defined hydrogen as one of the key themes to be addressed across segments toward solving social issues and generating social value, and will create synergy with
EE’s globally leading Power-to-X*2 (PtX) initiatives.
✓ Through our strategic partnership with EE and by leveraging the capabilities and knowledge of both companies, we will accelerate the development of renewable and green energy
business on a global scale. In this way, we will contribute to realizing a decarbonized society.
Consolidated Results*3

Company Overview
European Energy A/S

FYE
12/2020

FYE
12/2021FYE
12/2022FYE
12/2023

Revenues

206

328

438

420

EBITDA

61

81

140

178

(Million Euros)

Name

Head OfficeDenmark

Representative

Knud Erik Andersen, CEO

Stated Capital

40,624,000 Euros(as of end-December 2023)

Net Income

16

51

80

102

Date of
Establishment

April 2004

Net Assets

235

350

391

432

Operating Regions

28 countries, mainly in Europe

Employees

609 (as of end-December 2023)

Total Assets

739

1,174

1,743

2,027

*1 EUR 1 = JPY163.24*2 Refer to page 40 for details*3 Results for FYE12/2022 were revised based on the announcement by EE▲ Power generation facility in Holmen, Denmark, developed by EE

39

Investment in a European company engaged in renewable
and next- generation energy businesses (2)Overview of EE and Its Strengths✓ EE, active in 28 countries, achieved more than an accumulated 3GW in renewable energy development, and has more than 60GW in development and construction pipelines
mainly in Europe.
✓ EE has mainly developed solar and onshore wind power generation, and its main sources of profits are sales gains from development projects and revenue from electricity sales
after completing power source development. It has stably expanded its business and achieved profit growth.
✓ EE has also been developing PtX, the production of green hydrogen and e-methanol utilizing electricity generated from renewable energy sources, for which demand is expected to
grow significantly. In PtX, it has been developing commercial-base projects, for which the recipient companies are secured, and is a global pioneer in this field.
[Reference] Power-to-X Business Overview✓ Power-to-X refers to the technology using electrolysis powered by renewable energy to split water into hydrogen and use the produced hydrogen as a replacement for fossil fuels,
materials, etc. PtX is the process of turning renewable electricity (power) into sustainable green products (the “X”) such as hydrogen, e-methanol, and green ammonia.

Power

X

to
e-methanol

Vehicles, ships, chemicals

SAF*
AircraftRenewable energy
power sources

Power-to-X

GreenhydrogenSupply of green heat

Vehicles, factories, etc.

Greenammonia
Ships, fertilizers, etc.
▲ An e-methanol production plant being planned (conceptual drawing)* Sustainable Aviation Fuel40

Investments Made in FYE3/2024 Using
the Innovation Investment Fund
✓ In FYE3/2024, investments using this fund were made in seven companies in total. Investments in approximately 10 companies are
currently under consideration.

1

2

Business Description
Provides DX services foraccommodation management andprice setting

5

Business Description
Operates vending machines
contributing to the reduction offood loss

6

3
Business Description
Develops and operates an online
lending platform

7

Business Description

Business Description

Business Description

Operates private lodging andshort-term rental services

Develops an electric referral
system and medical resources
database

Provides DX services related todecarbonization and EV energy
management

4
Business Description
Provides a tool for managing
collaboration between medical
institutions

Investment period
Three years from
April 2023
Total amount of fund
JPY10.0Bn

41

Status of the Creation of Synergy through Business Integration✓ We have generated approx. 10.0 billion yen in synergy in management resources over the three years following the business integration as
per the initial plan.
✓ We have also created sales synergy and investment synergy steadily.
Synergy growth inManagement
management resources

Resources

Sales

Investments

HR

Reorganization ofGroup companies

Facilities

IT✓ Effects from optimizing
recruitment andintegrating HR systems✓ Effects from integrating
domestic and overseas
Group companies✓ Effects from integrating
floors of offices in thesame area✓ Effects from
integrating
operation systems

Generated approx. 10.0
billion yen in synergy over
the three years

JPY10.3Bn

JPY4.7Bn

Cross-selling through collaboration on a global basis,
strengthening of sales finance, etc.

JPY1.4Bn✓ We have concluded over 1,000 contracts through cross-selling over thetwo years following the business integration

FYE3/2022

FYE3/2023

FYE3/2024

Major investments

01

Acquisition of CAI, a leading U.S. marine
container company
We acquired CAI, a leading U.S. marine container
leasing company, aiming to enhance the marine
container leasing business, which has stable demand andhigh growth potential.

Investment Approx. USD1.1Bn
amount (Approx. JPY126.0Bn at JPY114 to USD 1)

in European Energy A/S, a company engaged in renewable and
02 Investment
next-generation energy businesses
We decided to make an investment (worth approx. JPY110.0Bn) in European Energy A/S,a Danish company engaged in renewable energy and next-generation energy businesses
mainly in Europe. We acquired 20% of its shares and made it into an equity-method affiliate.
(Please see page 39 for details.)

Investment Approx. EUR0.7Bn
amount(Approx. JPY110.0Bn at JPY163.24 to EUR 1)
42

Effects by Adjusting Fiscal Period Associated withReorganization of Subsidiaries✓ On April 1, 2023, our Group companies in the U.S., Mitsubishi HC Capital America, Inc. (“MHCA”), Mitsubishi HC Capital (U.S.A.) Inc.
(“MHCUSA”), and ENGS Commercial Finance Co. (“ENGS”), were integrated, with MHCA being the surviving company.
✓ On the same day, our Group companies engaged in the solar power generation business, etc., Mitsubishi HC Capital Energy Inc. (“Energy”)
and HGE Ltd. (“HGE”), were integrated, with Energy being the surviving company.
✓ The effects of these mergers in FYE3/2024 are as follows.
Merged on April 1
2022
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

2023
Aug. Sep.

Oct.

Nov. Dec.

Jan.

Feb.

Mar.

Apr.

FYE3/2023

MHCA(FYE: March)
Former
MHCUSAand ENGS(FYE: December)

1Q

2Q

2Q

3Q

FYE3/2023
Energy(FYE: January)

1Q

2Q

FYE3/2024
3Q

4Q

Energy(FYE: January)
1Q

22

FYE3/2023
Former HGE(FYE: March)

1Q

MHCA
(FYE: March)
1Q

1 1Q

4Q

2Q

3Q

YoY Impact on PL

1 Effect of profit increase

4Q
FYE3/2024

3Q

Jun.

FYE3/2024

FYE3/2023
1Q

May

The financial results of the former
MHCUSA and ENGS for the period
from January to March 2023 (threemonths) were incorporated inaddition to the results of MHCA forthe period from April to June 2023
(three months) after the merger of
the three companies.

2 Cause of profit decrease
For the former HGE, the financial
results for April 2023 (one month)
only were incorporated.

4Q

43

Segment Profit (1) (by Quarter)
FYE3/2023

FYE3/2024

1Q

2Q

3Q

4Q

Total

1Q

2Q

3Q

4Q

Total

31.2

28.0

27.9

29.3

116.5

27.8

27.7

29.8

30.5

115.9

-0.5

Base Profit

28.5

27.6

27.3

28.7

112.3

27.7

27.7

29.2

28.9

113.5

+1.2

Asset-related
Gain/Loss

2.6

0.4

0.5

0.6

4.2

0.1

0.0

0.6

1.6

2.4

-1.8

4

Recurring Income

16.7

13.5

12.2

12.6

55.2

11.3

9.7

12.8

15.6

49.5

-5.6

5

Segment Profit

11.2

9.3

8.1

9.3

38.1

8.2

7.0

9.3

13.6

38.1

0.0

Gross Profit

31.2

30.2

30.6

29.0

121.1

33.9

32.6

34.2

34.5

135.3

+14.2

Recurring Income

12.6

10.2

6.7

5.6

35.3

7.0

8.3

6.8

2.1

24.3

-10.9

8

Segment Profit

10.2

13.3

3.3

2.0

29.0

4.0

6.1

5.3

1.0

16.6

-12.4

9

Gross Profit

3.2

4.1

3.7

5.2

16.4

1.8

-0.1

3.4

5.2

10.4

-5.9

Base Profit

2.4

3.6

3.7

2.1

12.0

1.8

3.0

3.4

0.5

8.9

-3.1

Asset-related
Gain/Loss

0.8

0.5

-

3.0

4.4

0.0

-3.2

-

4.7

1.5

-2.8

12

Recurring Income

2.6

3.4

3.7

4.5

14.3

0.6

-0.6

2.0

3.3

5.3

-9.0

13

Segment Profit

1.9

3.5

2.8

3.3

11.6

2.6

0.0

1.3

3.3

7.3

-4.3

14

Gross Profit

6.7

4.5

8.5

13.8

33.6

9.0

9.8

12.2

17.9

49.1

+15.5

Base Profit

6.0

7.9

7.9

10.6

32.5

8.0

9.5

12.8

13.6

44.1

+11.5

Asset-related
Gain/Loss

0.6

-3.4

0.5

3.1

1.0

1.0

0.2

-0.6

4.3

4.9

+3.9

17

Recurring Income

-1.2

-2.5

4.0

8.9

9.1

2.8

7.6

9.2

12.4

32.3

+23.2

18

Segment Profit

-0.9

-1.8

2.8

6.1

6.2

2.3

4.9

6.9

13.0

27.3

+21.1

(Billion Yen)
1

Gross Profit

2
3

Customer
Solutions6
7

GlobalBusiness

10
11

Environment& Energy

15
16

Aviation

YoY

44

Segment Profit (2) (by Quarter)
FYE3/2023
1Q(Billion Yen)

2Q

3Q

FYE3/2024
4Q

Total

1Q

2Q

3Q

4Q

Total

YoY

Gross Profit
Base Profit
Asset-related
Gain/Loss
Recurring Income
Segment Profit

8.5
7.3

8.8
8.4

7.1
9.0

7.5
7.3

32.1
32.2

9.5
7.5

9.0
7.4

9.5
7.9

7.4
7.2

35.5
30.2

+3.4
-1.9

1.2

0.3

-1.9

0.2

0.0

1.9

1.5

1.5

0.1

5.2

+5.3

5.8
4.6

5.8
4.5

3.9
3.1

4.3
3.0

19.9
15.3

6.6
5.4

5.9
4.4

6.0
4.6

4.2
3.3

22.9
17.8

+2.9
+2.4

8.1
3.8

6.6
3.3

5.3
3.8

4.7
-0.2

24.9
10.9

9.8
3.0

0.3
-2.2

2.4
2.4

11.1
0.4

23.8
3.7

-1.0
-7.1

4.2

3.2

1.4

4.9

14.0

6.7

2.6

-

10.6

20.1

+6.1

27
28

Gross Profit
Base Profit
Asset-related
Gain/Loss
Recurring Income
Segment Profit

4.1
2.6

4.2
2.8

3.2
2.2

1.9
4.8

13.6
12.6

8.5
11.7

-1.6
-4.8

0.2
-0.3

8.7
5.4

15.9
11.9

+2.2
-0.7

29
30
31

Mobility

Gross Profit
Recurring Income
Segment Profit

2.5
1.6
1.3

2.2
1.1
1.0

2.3
1.1
0.9

1.9
0.1
0.4

9.0
4.1
3.7

0.3
0.8
0.8

0.2
0.6
0.7

0.3
0.6
0.7

0.3
0.2
0.4

1.2
2.3
2.7

-7.7
-1.7
-1.0

Adjustments

Gross Profit
Recurring Income
Segment Profit

1.4
-0.5
0.8

0.0
-2.2
-1.6

1.0
-1.2
-0.8

0.9
-1.8
1.0

3.4
-5.8
-0.6

2.1
-0.3
-0.2

0.6
-0.9
-0.7

2.8
-0.5
-0.1

2.8
0.6
3.0

8.4
-1.2
1.8

+5.0
+4.5
+2.4

93.2
83.5

84.6
83.5

86.7
86.0

92.6
80.5

357.3
333.6

94.6
84.7

80.3
78.9

94.9
93.4

110.0
88.5

380.0
345.7

+22.7
+12.0

Total

Gross Profit
Base Profit
Asset-related
Gain/Loss
Recurring Income
Segment Profit

9.7

1.1

0.6

12.1

23.6

9.9

1.4

1.5

21.5

34.3

+10.7

41.9
32.0

33.8
31.1

33.8
22.7

36.4
30.3

146.0
116.2

37.7
35.1

29.1
17.6

37.3
27.8

47.3
43.2

151.6
123.8

+5.5
+7.6

19
20
21

Logistics

22
23
24
25
26

32
33
34

Real Estate

35
36
37
38
39

45

Asset-related Gain/Loss (by Quarter)
FYE3/2023(Billion Yen)
1

Customer Solutions

1Q

2Q

3Q

FYE3/2024
4Q

Total

1Q

2Q

3Q

4Q

Total

YoY

2.6

0.4

0.5

0.6

4.2

0.1

0.0

0.6

1.6

2.4

-1.8

2

Gain/Loss on Sales

2.6

0.4

0.5

0.6

4.2

0.1

0.0

0.6

1.6

2.4

-1.8

3

Impairment Losses

-

-

-

-

-

-

-

-

-

-

-

4

Environment & Energy

0.8

0.5

-

3.0

4.4

0.0

-3.2

-

4.7

1.5

-2.8

5

Gain/Loss on Sales

0.8

0.5

-

3.0

4.4

0.0

2.6

-

4.7

7.3

+2.9

6

Impairment Losses

-

-

-

-

-

-

-5.8

-

-

-5.8

-5.8

0.6

-3.4

0.5

3.1

1.0

1.0

0.2

-0.6

4.3

4.9

+3.9

7

Aviation

8

Gain/Loss on Sales

0.6

0.6

1.0

4.5

6.9

1.0

0.2

2.0

4.3

7.7

+0.7

9

Impairment Losses

-

-4.0

-0.4

-1.3

-5.9

-

-

-2.6

0.0

-2.7

+3.2

1.2

0.3

-1.9

0.2

0.0

1.9

1.5

1.5

0.1

5.2

+5.3

10

Logistics

11

Gain/Loss on Sales

1.2

0.3

0.5

0.3

2.3

1.9

1.5

1.5

0.1

5.2

+2.8

12

Impairment Losses

-

-

-2.4

0.0

-2.4

-

-

-

-

-

+2.4

4.2

3.2

1.4

4.9

14.0

6.7

2.6

-

10.6

20.1

+6.1

13

Real Estate

14

Gain/Loss on Sales

4.2

3.2

1.4

4.9

14.0

6.7

2.6

-

10.6

20.1

+6.1

15

Impairment Losses

-

-

-

-

-

-

-

-

-

-

-

9.7

1.1

0.6

12.1

23.6

9.9

1.4

1.5

21.5

34.3

+10.7

16

Total Asset-related
Gain/Loss17

Gain/Loss on Sales

9.7

5.2

3.5

13.5

32.0

9.9

7.2

4.2

21.5

42.9

+10.8

18

Impairment Losses

-

-4.0

-2.8

-1.4

-8.4

-

-5.8

-2.6

0.0

-8.5

-0.1

(Note) Based on gross profit

46

Notes by Segment (excl. Asset-related Gain/Loss)FYE3/2023
1

Customer
Solutions

FYE3/2024

1Q： 【+】

Non-operating income from a certain deal (insurance claim income):approx. JPY1.0Bn

4Q： 【+】

Gains/Losses on sales of strategic shareholdings, etc.: approx. JPY5.5Bn

2Q： 【+】

Gains on revaluation of securities due to the exclusion of a European subsidiary fromthe scope of the equity method: approx. JPY7.0Bn

1Q： 【+】

Positive effects of the reorganization of subsidiaries in the Americas: approx.
JPY1.0Bn
Credit costs in line with the worsening market conditions in the Americas: approx.
JPY2.0Bn
Credit costs in line with the worsening market conditions in the Americas: approx.
JPY4.0Bn

【- 】

2

3

GlobalBusiness

3Q： 【 - 】【- 】【- 】
4Q： 【 - 】【- 】
1Q： 【+】

Environment &Energy2Q： 【+】
1Q： 【 - 】 Exchange revaluation losses related to leasing transactions of aircraft owned by

Aviation

4Q： 【 - 】
1Q： 【+】
4Q： 【 - 】
1Q： 【 - 】

Credit costs in line with the worsening market conditions in the Americas: approx.
JPY9.0Bn
A decrease in tax expenses associated with the absorption-type merger ofsubsidiaries*: approx. JPY2.0Bn
Temporary expenses: approx. JPY1.0Bn

Exchange revaluation losses related to leasing transactions of aircraft owned by
MHC: approx. JPY1.0Bn
Costs related to the bankruptcy of a customer: approx. JPY2.0Bn
Exchange revaluation gains related to leasing transactions of aircraft owned by MHC:
approx. JPY2.0Bn

3Q： 【+】
4Q： 【+】A reversal of tax expenses*: approx. JPY1.5Bn

1Q： 【 - 】

Large credit costs: approx. JPY2.0Bn

1Q： 【+】

4Q： 【+】【- 】

Impact of share transfer of DAF*: approx. JPY2.0Bn
Losses in the U.S. real estate businesses: approx. JPY2.7Bn

2Q： 【 - 】【- 】
3Q： 【 - 】
4Q： 【 - 】

Extraordinary income as a result of making CPD a wholly-owned subsidiary*:
approx. JPY4.8Bn
Losses in the U.S. real estate business*: approx. JPY5.5Bn
An increase in tax expenses*: approx. JPY1.5Bn
Losses in the U.S. real estate business*: approx. JPY0.8Bn
Losses in the U.S. real estate business*: approx. JPY3.4Bn

1Q： 【+】

Positive effects of reorganization of subsidiaries in the Americas: approx. JPY1.5Bn

4Q： 【+】

Gains/Losses on sales of strategic shareholdings, etc.: approx. JPY4.0Bn

3Q： 【 - 】
4Q： 【 - 】【+】

5

3Q： 【 - 】

Exchange revaluation losses related to leasing transactions of aircraft owned by
MHC: approx. JPY1.5Bn
A large reversal of allowance for doubtful accounts: approx. JPY4.0Bn
Exchange revaluation losses related to leasing transactions of aircraft owned by
MHC: approx. JPY2.5Bn
A large reversal of allowance for doubtful accounts: approx. JPY1.5Bn

2Q： 【 - 】

4

Losses from revaluation of strategic shareholdings: approx. JPY2.0Bn
Temporary IT-related expenses in Europe: approx. JPY1.0Bn
Temporary operating expenses in China: approx. JPY1.0Bn
Temporary regulatory compliance expenses in Europe: approx. JPY3.0Bn
Impact of a rise in the corporate tax rate in Europe (UK) *: approx. JPY2.0Bn
An increase in profit from an equity method investment in a wind power generation
project in Europe: approx. JPY1.0Bn
Gain on sales of equity interests in infrastructure business: approx. JPY2.0Bn
MHC: approx. JPY3.5Bn
Exchange revaluation losses related to leasing transactions of aircraft owned by
MHC: approx. JPY3.0Bn

2Q： 【+】【- 】

Logistics

6

Real Estate

7

Mobility

8

Adjustments(Note) Based on figures before taxes, but figures with “*” are after taxes

47

Segment Assets(Billion Yen)
1
2
3

Customer Solutions
Percentage of Total
Global Business

FYE3/2022

FYE3/2023

FYE3/2024

Change from FYE3/2023

3,337.6

3,227.7

2,966.5-261.1

35.7%

33.5%

29.1%

-4.4pt2,316.3

2,644.2

3,070.8+426.5

4

Percentage of Total

24.8%

27.5%

30.2%

+2.7pt5

Environment & Energy

419.3

433.2

416.6

-16.6

6

Percentage of Total

4.5%

4.5%

4.1%

-0.4pt1,365.1

1,640.2

2,020.0+379.8

14.6%

17.0%

19.8%

+2.8pt

1,026.7

1,092.9

1,099.0

+6.1

11.0%

11.4%

10.8%

-0.6pt11 Real Estate

712.7

447.2

525.4

+78.1

12

7.6%

4.6%

5.2%

+0.6pt13 Mobility

129.4

41.4

51.9

+10.5

14

1.4%

0.4%

0.5%

+0.1pt15 Adjustments

37.9

105.8

29.0

-76.8

16

Percentage of Total

0.4%

1.1%

0.3%

-0.8pt17 Total Segment Assets

9,345.3

9,632.9

10,179.4+546.57
8
9
10

Aviation
Percentage of Total
Logistics
Percentage of Total

Percentage of Total

Percentage of Total

48

New Transactions Volume by Segment(Billion Yen)

FYE3/2023

FYE3/2024

YoY Change

YoY Change (%)

933.2

984.8

+51.6

+5.5%

1,300.7

1,389.6

+88.8

+6.8%

1

Customer Solutions

2

Global Business

3

Environment & Energy

35.8

22.8

-12.9

-36.2%

4

Aviation

195.6

456.3

+260.6+133.3%

5

Logistics

55.3

38.3

-17.0

-30.8%

6

Real Estate

87.9

152.0

+64.1

+72.9%

7

Mobility

31.8

14.3

-17.4

-54.9%

8

Adjustments

-

-6.4

-6.4

-

9

Total New Transactions Volume2,640.6

3,051.9+411.3+15.6%

49

Credit Costs by Segment(Billion Yen)

FYE3/2023

FYE3/2024

YoY Change

1

Customer Solutions

-0.2

1.1

+1.4

2

Global Business

6.8

22.7

+15.9

3

Environment & Energy

1.8

2.3

+0.4

4

Aviation

3.0

-6.6

-9.7

5

Logistics

0.0

0.0

0.0

6

Real Estate

2.2

0.0

-2.3

7

Mobility

0.0

0.0

0.0

8

Adjustments

0.0

0.0

0.0

9

Total Credit Costs

13.7

19.5

+5.8

50

Financial Performance: Profit & Loss Statement(Million Yen)
1

Revenues

2

Cost of Revenues

3

Cost of Funds

4

Gross Profit

5

SG&A Expenses

6

Personnel Expenses

7

Non-personnel Expenses

8

Allowance

9

Operating Income

10 Recurring Income
11 Extraordinary Income
12 Extraordinary Loss13

Net Income Attributable to Ownersof the Parent

FYE3/2021*

FYE3/2022

FYE3/2023

FYE3/2024

1,713,891
1,418,066
92,392295,825
197,774
91,011
79,162
27,59998,051
105,419
20,591
299
87,166-

1,765,559+3.0%
1,430,898+0.9%
77,493-16.1%
334,661+13.1%
220,569+11.5%
99,286+9.1%
83,806+5.9%
37,477+35.8%
114,092+16.4%
117,239+11.2%
30,399+47.6%
388+29.8%
99,401+14.0%

1,896,231+7.4%
1,538,904+7.5%
136,656+76.3%
357,327+6.8%
218,600-0.9%
112,007+12.8%
89,735+7.1%
16,858-55.0%
138,727+21.6%
146,076+24.6%
11,350-62.7%
4,262+998.4%116,241+16.9%

1,950,583+2.9%
1,570,487+2.1%
209,127+53.0%
380,095+6.4%
233,919+7.0%
120,429+7.5%
91,883+2.4%
21,606+28.2%
146,176+5.4%
151,633+3.8%
17,372+53.1%
1,329-68.8%
123,842+6.5%(Note) Percentage figures (%) in the lower rows are YoY* Figures for FYE3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis in a simplified manner, and are presented as reference values

51

Financial Performance: Balance Sheet, etc.
(Million Yen)
1

Cash and Cash Equivalents

2

Total Equity

3

Total Assets

4

Segment Assets

5

Operating Assets

6

Equity Method Investments

7

Goodwill,
Investment Securities, etc.

8

Distressed Receivables

9

Allowance for Doubtful Accounts

10

Net Balance of Distressed
Receivables

11 Equity Ratio
12 ROE
13 ROAFYE3/2021*(end-Mar. 2021)
603,3211,250,216
9,730,027
8,604,876
8,259,624
140,291
204,960
95,54358,06637,47612.5%-

FYE3/2022(end-Mar. 2022)
540,942-10.3%
1,333,467+6.7%
10,328,872+6.2%
9,345,376+8.6%
9,058,273+9.7%
142,469+1.6%
144,633-29.4%
108,188+13.2%
76,791+32.2%
31,397-16.2%
12.7%+0.2pt8.0%
1.0%-

FYE3/2023(end-Mar. 2023)
589,688+9.0%
1,551,029+16.3%
10,726,196+3.8%
9,632,966+3.1%
9,311,185+2.8%
163,109+14.5%
158,670+9.7%
99,912-7.6%
68,806-10.4%
31,106-0.9%
14.3%+1.6pt8.2%+0.2pt1.1%+0.1ptFYE3/2024(end-Mar. 2024)
366,478-37.9%
1,705,345+9.9%
11,149,858+3.9%
10,179,473+5.7%
9,825,993+5.5%
177,850+9.0%
175,629+10.7%
122,035+22.1%
66,983-2.6%
55,051+77.0%
15.1%+0.8pt7.7%-0.5pt1.1%
0.0pt(Note) Percentage figures (%) in the lower rows are vs. end of the previous fiscal year
* Figures for FYE3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis in a simplified manner, and are presented as reference values

52

Financial Performance: Balance Sheet, etc. (Cont’d)(Million Yen)
14 Total Funding
15

Indirect Funding

16

Direct Funding

17

CP

18

Securitization

19

Corporate Bonds

20 Direct Funding Ratio
21 Long-Term Funding Ratio
22 Foreign Currency Funding Ratio

FYE3/2021*1(end-Mar. 2021)
7,633,836
4,193,928
3,439,908
643,812584,565
2,211,530-

FYE3/2022(end-Mar. 2022)
8,066,082+5.7%
4,515,103+7.7%3,550,978+3.2%
682,593+6.0%
604,493+3.4%
2,263,891
+2.4%

45.1%
81.5%
43.1%
-

FYE3/2023(end-Mar. 2023)
8,236,106+2.1%
4,846,586+7.3%
3,389,520-4.5%
559,485-18.0%
604,3020.0%
2,225,731
-1.7%

44.0%
-1.1pt81.1%-0.4pt49.4%+6.3ptFYE3/2024(end-Mar. 2024)
8,439,792+2.5%
4,919,380+1.5%
3,520,411+3.9%
784,178+40.2%
565,959-6.3%
2,170,273
-2.5%

41.2%
-2.8pt82.5%+1.4pt56.3%+6.9pt41.7%+0.5pt
82.5%
0.0pt
60.6%
+4.3pt(Note) Percentage figures (%) in the lower rows are vs. end of the previous fiscal year
*1 Figures for FYE3/2021 are the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis in a simplified manner, and are presented as reference values

Exchange Rate Applied to Financial Results of Major Overseas Subsidiaries*2
Major Overseas Subsidiaries with FY
Ending in December

Major Overseas Subsidiaries with FY Ending in MarchFYE3/2023

FYE3/2024

23 Exchange Rate Applied to PL$1＝JPY131.43$1＝JPY140.56£1＝JPY163.15$1＝JPY135.47£1＝JPY181.76$1＝JPY144.62

24 Exchange Rate Applied to BS$1＝JPY132.70$1＝JPY141.83£1＝JPY165.56$1＝JPY133.53£1＝JPY191.22$1＝JPY151.41*2 Major overseas subsidiaries with⇒ Average exchange rates from January through December applied to PL
FY ending in December
FYE3/2023 BS: exchange rate as of end-Dec. 2022 is applied
FYE3/2024 BS: exchange rate as of end-Dec. 2023 is applied

FYE3/2023

FYE3/2024

Major overseas subsidiaries with⇒ Average exchange rates from April through March applied to PL
FY ending in MarchFYE3/2023 BS: exchange rate as of end-Mar. 2023 is applied
FYE3/2024 BS: exchange rate as of end-Mar. 2024 is applied

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Inquiries and Others
Inquiries

Corporate Communications Department
TEL：+81 3-6865-3002

Websitehttps://www.mitsubishi-hc-capital.com/english/

Information published on our website

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