Overview
Third-Quarter Resultsfor FY2021
February 8, 2022

Mizuho Leasing Co., Ltd.

Summary of Third-Quarter Results for FY2021
 Earning and loss of Aircastle declined, impacted by the sluggish business performance of the airline industry(-¥5.8 billion)
 An impairment was recognized for all of the amount equivalent to the goodwill of Aircastle in January 2022

following a review of the long-term balance of Aircastle (-¥10.5 billion)
 On the other hand, ordinary income increased mainly due to recording of the amount equivalent to negative

goodwill (+¥14.9 billion) resulting from the share acquisition of Nippon Steel Kowa Real Estate and Mizuho Capital,
in addition to robust business performance of other equity-method affiliated companies. The decline ofextraordinary income was also absorbed by the net income.
Income indicators (¥bn)

1

FY19
3Q Results

FY20
3Q Results

FY21
3Q Results

Change%ChangeRevenues

380.5

350.1

389.5

+39.4

+11%

Gross profit before write-offs and funding
costs

42.6

43.0

44.4

+1.4

+3%

Operating income

17.9

17.8

17.7

-0.1

-0%

(2.3)

(-3.5)(-5.8)-(Earning and loss of Aircastle)-(Impairment of amount equivalent to goodwillof Aircastle)--(-10.5)(-10.5)-(Amount equivalent to negative goodwill)--(14.9)(+14.9)-(Other non-operating income and loss)

(0.3)

(1.8)

(4.5)

(+2.7)(+150%)

Ordinary income

18.2

21.9

23.1

+1.2

+5%

(Extraordinary income)

(0.5)

(4.0)

(0.2)

(-3.8)(-96%)Net income attributable to owners of theparent

12.5

18.0

17.3

-0.7

-4%

Factors behind change in net income attributable to owners of the parent
2.7

14.9

¥bn(D)
(E)

(C)

1.9
18.0

(A)

0.5

-5.8

(F)

(B)

-0.5

-1.1

-0.8

-10.5

(G)

2.0

17.3

-3.9

Ordinary income +¥1.2 billion

FY20 3Q

2

Income fromlease,financing, etc.

Income fromforeigncurrency
factors

Funding
costs

Creditcosts

Selling,
general andadministrative
expenses

AmountOther nonequivalent operating
to negative
incomegoodwilland loss

Earning andloss of
Aircastle

Impairment ofamountequivalent togoodwill

Extraordinary
income andloss

Tax
expense(A) Income from lease, financing, etc.

Increased due to the accumulation of assets in the highly profitable financing area in spite of the decline in aircraft related transactions(B) Credit costs

Due to credit costs related to aircraft related transactions(C) Amount equivalent to negative
goodwill

Mainly due to posting negative goodwill (¥9.1 billion for Nippon Steel Kowa Real Estate and ¥5.8 billion for Mizuho Capital) resulting
from the share acquisition of these companies as equity in earnings and losses of associated companies(D) Other non-operating income andloss

Driven by robust business performance of equity-method affiliated companies other than Aircastle(E) Earning and loss of Aircastle

Earning and loss of Aircastle declined from the downturn in the airline industry (-¥3.5 billion)(F) Impairment of amount equivalent
to goodwill

The goodwill recorded at the time of the share acquisition of Aircastle was impaired (-¥10.5 billion)(G) Extraordinary income and loss

Declined since extraordinary income (gain on sales of investment securities) was posted in the same period of the previous fiscal year

FY21 3Q

Overview of Financial Results
Change%Change389.5

+39.4

+11%

43.0

44.4

+1.4

+3%

7.36.1

5.6-0.5-7%

Gross profit

35.2

36.9

38.8

+1.9+5%Credit costs

-0.6

0.7

1.7+1.0+159%

Operating income

17.9

17.8

17.7-0.1-0%

Other income

1.1

5.7

6.5+0.8+14%

Ordinary income

18.2

21.9

23.1

+1.2

+5%

Net income attributable toowners of the parent

12.5

18.0

17.3

-0.7-4%Gross profit margin before
write-offs and funding costs

2.74%

2.60%

2.51%

-0.09pt-(¥bn)FY193QFY203QFY213Q

Revenues

380.5

350.1

42.6

Gross profit before writeoffs and funding costs
Funding costs

Funding costs declined due to foreigncurrency factors
Increased since credit costs
concerning aircraft relatedtransactions were posted

Note) Gross profit margin before write-offs and funding costs = Gross profit before write-offs and funding costs (annualized basis) /Operating assets (average of the beginning and ending balances)

End ofMar 2021

End ofDec 2021

2,090.3

2,322.4

2,386.8

+64.4

+3%

Net assets

195.8

210.9

232.0

+21.1

+10%

Equity ratio

7.9%

7.7%

8.2%

+0.5pt-(¥bn)
Operating assets

3End ofMar 2020

Change%ChangeDue to the accumulation of income, thelatest equity ratio is at the 8.2% levelBusiness Performance Overview (1) Contract execution volume and operating assets remained flat y-o-y Contract execution volume was -5% y-o-y and improved from -14% in 2Q
 Thanks to the commitment to the accumulation of assets, prioritizing profit, future revenue* 1 and profit

margin*2 for new projects improved
Contract execution volumeExecution volume(industry-wide comparison)
2.00

Financing and others
Leasing and installment sales（億円）(¥bn)

1,200.0

1,019.6

972.6

477.2

372.9

542.3

599.7

FY20 3Q

FY21 3Q-5%

1,000.0
800.0

Rateof change in contract execution volume
契約実行高変化率
Rateof change in leasing transaction volume (Japan Leasing Association)
リース取扱高変化率（リース事業協会）

1.50
1.00

600.0

0.50

400.0
200.0

Index with FY17 3Q as the standard (=1)

0.00
17/3Q3Q
FY170.02,500.0

Leasing and installment sales

2,322.4

2,386.8

1,600.8

1,592.6

721.6

794.1

1,000.0
500.0

End of Mar 2021

4+3%

4.0
3.5
3.0
2.5
2.0
1.51.00.50.0

End of Dec 2021

21/3Q
FY213Q

Rate of change in future revenue

Index with FY17 3Q as the standard (=1)

FY17 3Q

0.0

20/3Q
FY203Q

Rate of change in profit margin

Financing and others

2,000.0
1,500.0

19/3Q
FY193Q

Future revenue*1 / Profit margin*2

Operating assets
(¥bn)
（億円）

18/3Q
FY183Q

FY18 3Q

FY19 3Q

FY20 3Q*1 Estimated future revenue to be recorded before new projects are completed*2 Profit margin for new projects

FY21 3Q

Business Performance Overview (2) Compared to FY20, although the contract execution volume declined 18% in FY21 1Q and 10% in

FY21 2Q y-o-y, contract execution prospects gradually advanced in the sales pipeline in 3Q, and as aresult, the contract execution volume increased 14% y-o-yContract execution volume(quarterly basis)

Financing and others
Leasing and installment sales
(¥bn)

(¥bn)
（億円）

(¥bn)

500.0

500.0

400.0

400.0
320.2

300.0

▲10%-10%

364.8

300.0

200.0

334.6

158.7
132.1

92.0

154.5

171.6

FY20 1Q

FY21 1Q0.05

382.6

122.2

200.0

100.0

400.0

300.0179.4

165.7

＋14%

326.5

-18%

263.5

500.0

100.0

200.0

185.4

204.3

FY20 2Q

FY21 2Q

0.0

100.0

202.5

223.8

FY20 3Q

FY21 3Q

0.0

Contract Execution Volume / Leasing and Installment Sales
Contract execution volume by equipment type
 Although the movement of contract execution volume in FY21 1H got off to a slow start, further

improvement was made in 3Q and the percentage change for the overall business was -22%, which
improved from -38% in FY21 2Q.

6(¥bn)FY193QFY203QFY213Q

Information andcommunications

110.7

142.0

118.7-23.3-16%

Real estate

134.0

116.8

91.2

-25.6

-22%

Industrial and factory

111.0

101.5

54.5

-47.0

-46%

Transport

63.5

28.9

26.0

-2.9

-10%

Construction

28.6

26.5

18.2

-8.3

-31%

Commerce and services

21.9

17.6

12.1

-5.5

-31%

Medical

12.6

8.3

7.9

-0.4

-5%

Other

35.8

35.7

44.3

+8.6

+24%

Total

518.2

477.2

372.9

-104.3-22%

Change%ChangeIncreased mainly due
to initiatives for a
project investment
type lease in thehydroelectric power
generation businessand subscription
servicesContract Execution Volume / Financing
Contract execution volume(¥bn)

FY193QFY203QFY213Q

Change%ChangeCommercial
distribution finance /loan, etc.

389.7

473.7

477.5

+3.8

+1%
Increased due to large projects executed

7Real estate

43.1

49.8

118.4

+68.6

+138%

Vessel

15.9

15.9

3.7

-12.2

-77%

Aircraft

18.0

3.0

0.0

-3.0

-100%

Total

466.6

542.3

599.7

+57.4

+11%

Transactions declined mainly due tostagnation in the need for vessel
introduction resulting from factors such as asurging vessel price and weakened needs
for services that address off-balance sheet
from shipping companies caused bysoaring market freight rate index

In response to sluggish demand on theback of the COVID-19 pandemic, newinitiatives were restrained in FY20 andFY21.
Based on elements such as the market
recovery situation, we are planning to workon selected initiatives from FY21 3Q
onwards

Funding Funding costs and funding costs ratio both decreased due to factors such as lower foreign currency funding interestrates
 Promoted initiatives for diversifying funding sources and addressing environmental issues through the issuance of

our first green bond on December 10, 2021

Funding costs (ratio)

Interest-bearing debt(¥bn)

Borrowings

2,400.0
2,000.6
1,800.0

CP

Bonds/securitization
2,338.6
2,255.4
345.1

372.2

FY193Q(¥bn)

Funding costs
Funding costs ratio

266.6
714.1

735.1

FY203Q

7.3

6.1

5.6

0.47%

0.37%

0.32%

Note) Funding costs ratio = Funding costs (annualized basis) / Operating assets(average of the beginning and ending balances)669.1
1,200.0

External ratings
Rating agency600.0

1,065.0

1,196.1

1,231.3
R&I

0.0

JCR
End of Mar 2020 End of Mar 2021 End of Dec 2021

8FY213Q

RatingLong-term

A

Short-term

a-1Long-term

A+Short-term-Earnings Forecasts and Dividends
 We have not changed our full-year earnings forecasts for FY2021‒

Going forward, we will continue to closely watch the impact on the economy from the recent rapid
and wide spread of Omicron variant

 Interim dividend of ¥55/share, an increase of ¥15/share y-o-y, paid out as forecast at beginning offiscal year The plan is also to increase annual dividend by ¥18/share y-o-y to ¥110/share, as forecast at

beginning of fiscal year(¥bn)

9FY2020(Results)(A)

FY2021(Forecast)(B)

3Q
Results%
Progress

Change(B)-(A)%
Change(B)/(A)

Revenues

497.9

550.0

389.5

71%

+52.1

+10%

Operating income

26.0

30.0

17.7

59%

+4.0+16%

Ordinary income

27.5

33.0

23.1

70%

+5.5+20%

Net income attributableto owners of the parent

21.8

23.0

17.3

75%

+1.2+6%

Annual dividend¥92¥110+¥18Interim dividend¥40(Result)¥55+¥15Year-end dividend¥52(Forecast)¥55+¥3Dividend payout ratio

20.4%

23.1%

+2.7ptAppendix

Cooperation with Mizuho Financial GroupMizuho Capital became an equity-method affiliatedcompany of Mizuho Leasing

Sales cooperation
Future revenue* almost doubled compared to the previousyear- Collaboration expanded steadily in areas such as real estate andenvironment- The number of cooperation projects in the sales pipeline in 4Q isclose to double the level seen at the beginning of 3Q, andaccumulation of future revenue is underway

Future revenue* through cooperation

Mizuho Capital became an equity-method affiliatedcompany of Mizuho Leasing in December- Dispatched 1 director (Voting right ratio: 15.01%)- Cooperation and collaboration will be further deepened
Referral of start-up companies in our strategic areas toMizuho Leasing by Mizuho Capital- Logistics, healthcare, renewable energy, etc.

AlmostdoublePerspective- Finance- Cross-selling- Equity
FY20 3Q

10More than
10,000companies

FY21 3Q(*Estimated future revenue total to be recorded before new projects arecompleted)Start-up network

Collaboration in strategic areas such as sustainability andtechnology was also deepened- Mizuho SDGs Leases (from June) is expanding steadily- Development and offering of a subscription service for thelogistics robot

MizuhoLeasing

ReferralMizuhoCapitalCooperation with the Marubeni Group, Ricoh and Ricoh Leasing
Marubeni Group

Ricoh and Ricoh Leasing

Mizuho Marubeni Leasing- Income increased significantly y-o-y in FY21 3Q

- Started taking advantage of Ricoh Leasing’s vendor
transactions expertise and infrastructure (in November)- Mainly for overseas projects, sales prospects in the sales
pipeline are being accumulated

Joint investment with Marubeni- For overseas financial businesses, etc., initiatives mainly
include participation in syndicated loans for the companies
that Marubeni invests in and joint acquisition with Marubeni

Vendor financing business- Promotion of bringing in and examining specific projects
is underway

Accumulation of cases of arranging for referrals andcollaboration (joint participation)- Grab opportunities to generate income in areas each has
strength inHighlight- Handle large projects by risk sharing▪Equity transfer of an Australian automobile financing
Contract volume through cooperationcompany[Affordable Car Leasing Pty Ltd (ACL)]

MarubeniＧ
100%
AustralianSPCResults to date¥10.0 billion¥6.7 billion

Mizuho Leasing
Equitytransfer50%(Equitymethod)

Medium-term initiatives to create and improve value- Collaboration in areas such as sustainability, digitaltransformation (DX), etc.

100%→50%ACL

11FY2021 target

Aircastle and Negative Goodwill
Aircastle[Earnings]

Aircastle’s results

Due to the decline in lease revenues and loss
related to aircraft leased to Garuda Indonesia, the net income
attributable to owners of the parent was -USD 68 million
 Mizuho Leasing’s earning and loss was-¥3.5 billion (before tax effect)[Impairment of amount equivalent to goodwill] Reviewing long-term recoverability assessment ofAircastle in January 2022
 Conservatively evaluated recovery speed fromthe impact of the spread of COVID-19

FY20 3Q

FY21 3Q

Sales

635

515

－

Impairment

-300

-111

－

Net income attributableto owners of the parent-237-68－

ChangeMizuho Leasing’s results

Based on the evaluation, reviewed collectability of the goodwill
recorded at the time of acquisition. As a result, an impairmentof -¥10.5 billion (all of the amount equivalent to the goodwillof Aircastle) was recognized.
 Therefore, there will be no amortization of goodwill
from the next quarter.

(USD million)*(¥bn)

Earning and loss (*)

2.3

-3.5

-5.8

Impairment of goodwill--10.5－Equity in earnings andlosses of associatedcompanies

2.3

-14.0

-16.3

Incorporates portion for 6 months from April to September for Aircastle (fiscal year end: December) for FY20 3QIncorporates portion for 9 months from March to November for Aircastle (fiscal year end: February, changed in
September 2020) for FY21 3Q

Negative goodwill
For Nippon Steel Kowa Real Estate and Mizuho Capital, which became equity-method affiliated companies in
September 2021 and December 2021, respectively, the amount equivalent to negative goodwill was posted as
equity in earnings and losses of associated companies.
 The amounts of net asset value (equity held by Mizuho Leasing) exceeding the acquisition prices of eachcompany
Nippon Steel Kowa Real Estate: ¥9.1 billion
Mizuho Capital: ¥5.8 billion
12

Overview of Sixth Mid-term Management Plan (FY 2019-2023)
Providing solutions that contribute to financial andbusiness strategies for all our clients

Cooperation with strategic business partners

Enhancing lease financing business byexpanding client baseMizuho Financial Group（※1）

One of the largest client
bases in Japan andoverseas

Strengthening andexpanding the leasefinancing business

Strong ties between Group
companies includingbanks, trust banks, andsecurities firms

Jointly implementing
New BusinessStrategies

Evolving new business strategies
Service business
Managing joint ventures with clients
Supporting clients’ commercial distribution

Marubeni
Continuing initiatives in focus areas
Environment and energy

Medical and healthcare

GlobalAircraft

Real estateTechnology

Overseas networkWide range of leasefinancing products fromgeneral trading company

Strengthening overseas
lease financing
businesses
Investing in new
overseas businesses

経営基盤の強化Reinforcementof management baseStrengthening
group governance13

Improving operational
productivity

HR strategy

Increasing
sophistication of riskreturn management

Consolidated Targets for the Final Fiscal Year of Sixth Mid-termManagement Plan (FY 2019-2023)
Net income attributableto owners of the parent¥30.0
billionTripleBalance inthe global area

compared with that at
the end of March 2019

Dividend
payoutratio

Aim for25%or more(¥bn)

Triple

30.0

21.8
16.6

17.5

compared withthat at the endof March 2019

23.0(Planned)

25.0%
25%

23.1%(Planned)

3Q：17.3

13.6¥280.7

20.1％

billion20%¥142.5billion

FY17 FY18 FY19 FY20 FY21 FY22 FY23

End of

End ofMar 2019

Dec 2021

・・・

End ofMar 2024

Balance as of end of Dec 2021
FY21 3Q results ¥17.3 billion
14¥280.7 billion

15%
FY18 ・・・ FY21 ・・・ FY23

FY21
dividend payout ratio

23.1% (planned)

Main Topics (Examples of Initiatives by the Group)
Issued our first green bond
 Issued Mizuho Leasing’s first green bonds (unsecured straight bonds) through a public offering in the domestic market in December
2021.
 We aim to contribute to the realization of a sustainable society by implementing further environmental improvement businesses withthe funds raised by the green bond.

Australian automobile financing company, Affordable Car Leasing Pty Ltd (ACL) became an equity-method affiliated company

October to December (3Q)

 Resolved the transfer of 50% of the shares of Australian automobile financing company, ACL, from the Marubeni Group to Mizuho
Leasing. Subsequently, it was decided that ACL would be an equity-method affiliated company of the Marubeni Group and Mizuho
Leasing.
 ACL will be Mizuho Leasing’s first business deployment in Australia, and we will further strengthen our competitive edge andprofitability in Australia’s high-growth potential automobile financing market through joint business with Marubeni and strive for
improving our presence in the global market.

Investment in CCReB Advisors Inc.
 Investment in CCReB Advisors, a startup in Japan that visualizes corporate needs in Corporate Real Estate (CRE) and provides
support for CRE sales by utilizing AI x IoT technologies.
 We will leverage the AI technology and knowledge that CCReB Advisors Inc. possesses to promote the digital transformation (DX)of Mizuho Leasing and further improve work efficiency and create opportunities to acquire real estate projects.

Completion of application for the selection of a new market segment “Prime Market”
 The Board of Directors meeting held in November 2021 resolved the selection and application of the Prime Market for new market
segments of the Tokyo Stock Exchange, Inc., and we submitted an application to the Tokyo Stock Exchange in December 2021.
 We aim to further increase corporate value by improving the effectiveness and transparency of our corporate governance toencourage many investors to obtain our shares as well as carrying out open-book management.

15

Connect needs to create the futureInquiries
Mizuho Leasing Company, Limited
Corporate Planning Department
Corporate Communication DivisionTel: +81-3-5253-6540
Fax: +81-3-5253-6539

This document contains forecasts and other forward-looking statements that are based on
information available at the time of preparation of this document and subject to certain risks anduncertainties, and is not intended to guarantee that the company would achieve them.
Actual business results may differ materially from those expressed or implied by such forwardlooking statements due to various factors.