Progress of the Medium-term Management Plan (2025 MTMP)－as of the Time of the Financial Results Briefing for FYE3/2024
Mitsubishi HC Capital Inc.
June 20, 2024

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.
1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.
2

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
ROA

160.0
99.4

116.2

123.8

135.0

8.2%

8.0%
1.0%

1.1%

ROE

Approx. 10%

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

3

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.
Targets (2025 MTMP)

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

Formulate the talent portfolio frameworkand visualize 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 the engagement survey
questions〇

DX assessment*1
DXアセスメント
Ratio of standard
or higher level talent「スタンダード」レベル以上の人材比率(単体)(non-consolidated)

80%
or more
80%以上

46.8%
(+22.0pt YoY)〇

FY2024 plan: 70% or more

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

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

Proceed with considering the implementation ofBPR*2 and promote taking inventory
and visualizing business operations

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

70% or more

74.4%(+5.7pt YoY)◎

Maintain the targeted rate or higher

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 andverified the method regarding each
asset and transaction〇

Aggregate FY2023 results
Obtain a third-party assurance
and disclose results

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

Continue to promote energy saving,
electrification (the shift to EVs),
and the use of renewable energy

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

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

Continue to promote energy saving, reviewingof the number of vehicles used, etc.

Talent Base/Know-how

Human
CapitalIntellectual
CapitalAsset Base/
External Relationship

FY2023 Results

KPI (Italics in parentheses: target scope(consolidated or non-consolidated)): New KPIs and targets(Existing KPIs and targets were updated)

Direction for FY2024-2025
Description

Assessment

Consider visualization and matching of job
information and talent information(Quantitative targets will be set at the time of thefinancial results briefing for FY2025)

Fine-tune questions in the engagement survey(Quantitative targets will be set at the time of thefinancial results briefing for FY2024)*1 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*2 BPR (Business Process Re-engineering): Fundamentally reviewing existing organizations and systems toward achieving the original objective of business operations, andre-designing business operation flows, information systems, etc. focusing on processes

4Business Strategies (Customer Solutions)
Summary of 2025 MTMP Progress▶

▶

Steady progress was made on the reviewing of our portfolio in FY2023. Thoughsegment assets decreased due to the share transfer of Group companies, net income
remained the same through sales of strategic shareholdings, real estate, etc. Our issue
is the generation of businesses that significantly contribute to profit.
We will accelerate the evolution and layering of business models by promoting eachstrategy to expand profits.

(JPY100Mn)
Net Income
Segment Assets
ROA

FY2022

FY2023

YoY

381

381

±0

32,277

29,665-2,6111.1%

1.2%+0.1ptDetails of 2025 MTMP Progress
Major Strategies Set
when the 2025 MTMP
was Formulated

Major Initiatives
in FY2023•

Leveraging our solid customer base as our strength, accelerate the creation of collaboration businesses based on multi-layered customer relationships and shareholder
channels, etc.

•

Provide new services leading to the evolution and layering of business models.

•Pursue efficiency by establishing a new sales process which utilizes data and digital technologies.

•

Steady progress was made on the reviewing of our portfolio, such as transferring shares of Shutoken Leasing and DFL Lease and reducing strategic shareholdings.

•

We have conducted PoCs,*1 etc. for collaborative businesses and new services with partner companies by promoting collaboration with each company, such as
business alliances. However, generating businesses that significantly contribute to profit is an issue for the future.
*1 PoC (Proof of Concept): Verification of feasibility of new ideas and technologies

Road to Achieving
the 2025 MTMP•

Enhance profitability by launching many new services for which we have conducted PoC 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 through the development/usage of a new CRM *2 and the reallocation of humanresources.
*2 CRM (Customer Relationship Management): Customer information management system

5

Business Strategies (Global Business)
Summary of 2025 MTMP Progress▶
▶

Net income for FY2023 significantly decreased YoY mainly due to the increase of credit
costs caused by worsening market conditions for commercial trucks in the Americas.
We will quickly gain a solid foothold and restructure our portfolio in the Americas.
At the same time, we will achieve an increase in overall profit by accelerating eachstrategy in Europe and the Americas.

Details of 2025 MTMP Progress
Major Strategies Set
when the 2025 MTMP
was Formulated

FY2023YoY

Net Income

290

166

-124

Europe

176

170

-6

Americas

105

-13

-119

Segment Assets

26,44230,708+4,2651.1%

0.5%-0.6ptROA

Diversify businesses, expand our customer base, and shift to high value-added products by considering social issues and needs of each country and region.

•

Increase added value and differentiate our business by digitalizing business processes and providing digital platforms to more vendors and customers.

•

Increase profitability by enhancing decarbonization businesses such as EVs, charging stations, and solar power generation.
•

Promoted businesses related to power generation using sustainable energy (such as strengthening alliances with partners and installing EV charging facilities).

【Americas】 ••Focused on stabilizing management after three sites in the Americas were integrated.
Credit costs increased due to the rapid worsening of market conditions in the transportation sector, where we are operating our main business. The businessin the Americas ended in a deficit due also to a decrease of margins caused by the sudden rise of interest rates as well as a decrease in new transactions
volume.
Developed a function to analyze vendors for the sales finance business.

•【Europe】

Road to Achieving
the 2025 MTMP

FY2022•【Europe】

Major Initiatives
in FY2023(JPY100Mn)••【Americas】 ••Fully utilize partnerships and DX in each business. Increase profits by accumulating high-quality new assets, increasing margins, expanding gains on sales
in the mobility business, etc.
Expand interest rate margins by reducing funding costs through expanding our investor base, etc.
As the interest rate environment stabilizes, promote revising pricing standards and increasing margins to recover profitability.
In the sales finance business for commercial trucks, review the models and processes to control credit risks. Diversify our business portfolio and enhance
portfolio management by promoting the enhancement and expansion of other businesses.
6

Business Strategies (Aviation)
Summary of 2025 MTMP Progress▶

We achieved a business recovery at an early stage in FY2023 thanks to theimprovement of the aviation market.

▶

The Aviation segment is driving the growth of MHC through the expansion of its
business portfolio, deepening of Group synergies, etc.

(JPY100Mn)
Net Income
Segment Assets
ROA

FY2022

FY2023

YoY

62

273

+211

16,402

20,200+3,7980.4%

1.3%+0.9ptDetails of 2025 MTMP Progress
Major Strategies Set
when the 2025 MTMP
was Formulated

Major Initiatives
in FY2023•

Firmly maintain our competitive, industry-leading portfolio of aircraft and aircraft engine leasing businesses.

•

Enhance capabilities to address changes in industry and customer needs through optimized collaboration within the MHC Group, and expand the business size.

•

Create new businesses (next-generation aviation technologies, decarbonization, etc.) with the aim of acquiring a business platform for the future.

•

MHC Group companies JSA and ELF jointly arranged a large-sized leasing contract for the first time, meeting the diversifying needs of aviation companies.

•

ELF made INAV, which is engaging in engine parts sales, a 100% subsidiary to strengthen Group synergies.

•

Concluded collaboration agreements with investees for the establishment of new businesses. In addition, we conducted examinations and analyses of the industries
related to SAF*1 and hydrogen in view of decarbonization.
*1 SAF: Sustainable aviation fuelRoad to Achieving
the 2025 MTMP•

Obtain profits and increase asset profitability in the entire aviation value chain through collaboration between aircraft/engine leasing, engine parts sales, and businesses
in Japan.

•

Expand our high-quality liquid portfolio in a stable manner through M&As, etc.

•

Increase the ratio of new model aircraft and engines handled by JSA and ELF with a view to a decarbonized society, consider businesses and services in next-generation
aviation technology domains, etc.

7Business Strategies (Logistics)
Summary of 2025 MTMP Progress▶

▶

New investments were sluggish in FY2023 due to stabilized supply and demand in themarine container leasing business. However, we have maintained high utilization rates
thanks to our sales capabilities and accurate operation of CAI, such as active leasing of
our existing fleet.
The Logistics segment is accelerating its growth thanks to the profit contribution of therailway freight car leasing business in the U.S.

(JPY100Mn)

FY2022Net Income
Segment Assets

FY2023

YoY

153

178

+24

10,92910,990

+61

1.4%

1.6%

+0.2ptROA

Details of 2025 MTMP Progress
Major Strategies Set
when the 2025 MTMP
was Formulated

Major Initiatives
in FY2023

Road to Achieving
the 2025 MTMP•

Further strengthen the marine container leasing business base by using digital technologies, etc. in addition to expanding reselling and trading businesses by leveraging
our world-class position in the industry.

•

Improve profitability of railway freight car leasing business in the U.S. through portfolio optimization and a shift to the asset O&D model.

•

Create new growth opportunities that contribute to realizing a decarbonized and circular society.

•Controlled the decline of utilization rates of marine containers (through resale of old containers and extension of existing contracts).

•

Increased utilization rates by replacing our portfolio in the railway freight car leasing business in the U.S.

•

Generated gains on sales of owned ships capturing the increase in demand for ships.

•

Accumulate transactions by executing more new investments in the marine container leasing business, and maintain high utilization rates by further sophisticating
operations.

•

Acquire highly profitable transactions in the railway freight car leasing business in the U.S. and continue to generate gains on sales by strengthening O&D operations.

8Business Strategies (Environment & Energy)
Summary of 2025 MTMP Progress▶

▶

In FY2023, business strategies including the development of renewable energy
business in Europe steadily progressed, despite a temporary loss in the domestic
solar power generation business.

(JPY100Mn)

We will further expand our domestic power generating capacity and develop
businesses overseas through European Energy.

FY2022Net Income

FY2023

YoY

116

73

-43

Segment Assets

4,332

4,166

-166

ROA

2.2%

1.4%

-0.8ptDetails of 2025 MTMP Progress
Major Strategies Set
when the 2025 MTMP
was Formulated•

Secure stable electric power supply and strengthen the profit base by expanding our power generating capacity.

•

Increase added value of our power generating capacity by promoting new businesses such as battery storage and power generator aggregation.

•

Accelerate the development of renewable energy generation businesses in the U.S. and Europe by strengthening development functions, etc.

•••

Increased PPAs*1 for roof-mounted solar power generation systems, corporate PPAs*2, and onshore wind power generation projects under the FIT and FIP schemes *3.
Expanded business domains by launching aggregation business*4 targeting offshore wind power generation plants.
Developed a business platform in Europe by acquiring a 20 percent stake in European Energy.
*1 PPA: Power Purchase Agreement*2 Corporate PPA: An agreement under which corporate entities such as companies and local governments purchase renewable power from renewable electric power generationcompanies on a long-term basis.
*3 FIT (Feed-in Tariff): The FIT scheme is a system under which power companies purchase electricity generated by renewable power generation companies at a certain price for acertain period of time.
FIP (Feed-in Premium): Unlike FIT, the FIP scheme is a system under which renewable electric power is sold in the wholesale electricity market, etc. and a certain amount of premium(subsidy) is added to the sales price in connection with the market price.
*4 A business to predict the amount of renewable energy power generation and formulate supply and demand plans and provide electricity as well as non-fossil value based on them.

Major Initiatives
in FY2023

Road to Achieving
the 2025 MTMP

•
•
•
•

Further expand our domestic power generating capacity (solar, wind power, etc.).
Sell some of our solar and biomass power generation businesses with the aim of replacing them in our domestic business portfolio.
Develop renewable energy power generation businesses overseas through European Energy.
Replace our portfolio by selling overseas infrastructure assets.
9

Business Strategies (Real Estate)
Summary of 2025 MTMP Progress▶

In FY2023, we steadily increased our assets in the domestic finance business andrevitalization investment business.

▶

We will aim to increase profit generated during leasing terms by strengthening
development functions and improving capabilities to enhance value, and to continue togenerate gains on sales of assets.

(JPY100Mn)
Net Income

FY2022

FY2023

YoY

126

119

-7

Segment Assets

4,472

5,254

+781

ROA

2.0%

2.2%

+0.2ptDetails of 2025 MTMP Progress
Major Strategies Set
when the 2025 MTMP
was Formulated

Major Initiatives
in FY2023•

Create business opportunities through investment in and lending for eco-and society-friendly assets as well as increasing capabilities to enhance value by strengthening
development.

•

Enhance investment in logistics facilities development by increasing sourcing and leasing pipelines.

•

Differentiate our asset classes and address investors’ needs related to ESG, etc., aiming to enhance and expand asset management business.

•

Increased investment and lending transactions mainly related to environment- and society-friendly assets in Japan and implemented initiatives to enhance the value ofinvestment assets.
Strengthened in-house functions to develop logistics facilities by making CenterPoint Development (CPD), which has development and asset management functions
dedicated to logistics real estate, a wholly-owned subsidiary.
Steadily increased new assets under management targeting external investors in the asset management business.
Suspended initiatives related to new transactions following large losses in U.S. projects.

•
•
•

•

Road to Achieving
the 2025 MTMP••

Increase profit generated during leasing terms by strengthening development functions and improving capabilities to enhance value in Japan, and continue to generate
gains on sales of assets in Japan.
Promote O&D*1 in domestic finance businesses and restructure our portfolio.
Reduce losses and collect the maximum amount of debt in problematic U.S. projects.
*1 O&D (Origination & Distribution): A business model for real estate non-recourse loans aiming to increase profitability through sales or sub-participation of loans in part to external
parties such as by dividing loans into senior loan portions and subordinated loan portions.

10Business Strategies (Mobility)
Summary of 2025 MTMP Progress▶

In FY2023, we began providing an integrated EV service in Japan and merged two
domestic automotive leasing companies.

▶

We will further enhance the integrated EV service and maximize the synergy ofintegrating domestic automotive leasing businesses.

(JPY100Mn)

FY2022

FY2023YoY

Net Income

37

27

-10

Segment Assets

414

519

+105

ROA

4.2%

5.9%

+1.7ptDetails of 2025 MTMP Progress
Major Strategies Set
when the 2025 MTMP
was Formulated

Major Initiatives
in FY2023•

Develop and commercialize an integrated EV service that can extensively provide functions necessary for introducing and operating EVs, such as constructing charging
facilities networks, reusing automotive batteries, and supplying renewable energies.

•

Create synergy early on through the merger of two automotive leasing companies in Japan.

•

Expand our mobility business base by collaborating with strategic partners in the ASEAN region, etc.

•

Began providing an integrated EV service in Japan that includes support for introducing and operating EVs and charging facilities, the provision of parking lots wherecharging facilities can be installed, and the supply of renewable energy.
Merged two domestic automotive leasing companies aiming to create synergy through the integration.
Established and began operating an automotive leasing company jointly with Ayvens*1 in Thailand.

••*1 A new brand created through the merger of ALD Automotive and LeasePlan, global automotive leasing industry companies.

Road to Achieving
the 2025 MTMP••

Expand domestic and overseas EV integrated services.
Generate cost synergies and strengthen sales capabilities from the merger of the two domestic automotive leasing companies.

11

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
the core

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.
12

Corporate Functions Strategies✓ Initiatives to enhance corporate functions, which underpin the achievement of financial and non-financial targets and the steady
implementation of business strategies, have progressed smoothly. We will further refine initiatives related to the enhancement of humancapital, one of the most important themes of MHC’s corporate functions, and various risk management frameworks.
Fostering and Securing Talent
FY2023 Results (Major Initiatives)• Provided learning opportunities to all employees, in addition to considering a talent portfolio
strategy which contributes to the transformation of our business portfolio (with a talentdevelopment investment of 390 million yen).
• Carried out referral-based recruitment activities, etc. aiming to increase the amount of talent.
• Enhanced the engagement survey.

FY2024-2025 Plan (Major Initiatives)• Establish frameworks to steadily promote the qualitative transformation of the abilities of our talent, contributing to
the transformation of our business portfolio, and consider and implement measures based on them (such as byproviding opportunities for employees to learn and accumulate experiences according to their individual
characteristics).
• Implement initiatives to enhance mid-career recruitment such as by considering a remuneration system based oneach employees’ contribution to business results.
• Introduce engagement indicators and enhance their analysis and implement measures to improve them.

Bolstering the Financial Base and Internal Organizational Base
FY2023 Results (Major Initiatives)• Promoted transactions with financial institutions and investors toward diversifying fundprocurement methods while maintaining a robust financial base.
• Established a risk appetite framework in preparation for beginning the trial operation. Establisheda credit management framework related to the development of new businesses and new products.

FY2024-2025 Plan (Major Initiatives)• Continue to implement initiatives for procuring stable and competitive funds and expanding funding capacity, as wellas enhancing the ALM framework.
• Review the credit management framework aiming to respond to the transformation of our business portfolio.

Enhancing the Corporate Governance Framework
FY2023 Results (Major Initiatives)• Enhanced the Group-wide risk management framework based on the 3LoD (three lines ofdefense) model.
• Enhanced the governance framework on a global basis such as by conducting global joint audits.

FY2024-2025 Plan (Major Initiatives)• Improve the efficiency of the risk management framework.
• Further enhance the governance framework on a global basis.

Improving Stakeholder Engagement
FY2023 Results (Major Initiatives)• Enhanced dialogues with external stakeholders by increasing opportunities to communicate
information to individual investors and deepening relationships with media outlets, in addition toenhancing the content of disclosure materials.
• Analyzed scores assigned by ESG assessment institutions and clarified the method of assessing
social impacts.

FY2024-2025 Plan (Major Initiatives)• Hold IR briefing sessions per business segment for investors, etc. and strengthen points of contact with media
outlets by holding a media round table, etc. Also, diversify public relations and advertising methods.
• Establish a PDCA cycle for sustainability management.

13

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.
FY2024-2025 Plan (Major Initiatives)

FY2023 Results (Major Initiatives)• Conducted a survey on the 2025 MTMP. Based on the survey results, implemented initiatives tofoster awareness of transformation.
• Enhanced opportunities to transmit information from management to employees by opening a blogof the President & CEO, etc.

(2) “Create” transformation

Develop frameworks so that efforts contributing to transformation can be actively launched.
FY2024-2025 Plan (Major Initiatives)

FY2023 Results (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.

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【Reference】 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 of businessmodels while steadily engaging in “sowing seeds” for new domains and “gaining a solid foothold” by redeveloping and redefining existingdomains. 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 the figureon the right) is a key theme).
▶ Aim to achieve an optimal balance sheet based on well-balanced growthpotential, 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.
15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 overall management 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. to differ materially from the information expressed or implied by these forward-looking statements, which is basedon 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 or developments. 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 andother 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◼ 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.

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