I would like to introduce Mitsubishi HC Capital’s Medium-term Management Plancovering the three years from FY2023 to FY2025.
You may have heard this before, but this Medium-term Management Plan has been
named the 2025 MTMP, and I will be referring to it as such throughout this presentation.
The 2025 MTMP is the first Medium-term Management Plan for Mitsubishi HC Capital.
The two-year post-merger integration process planned at the beginning of our merger inApril 2021 was completed on schedule at the end of March this year, and so the start ofthe 2025 MTMP marks the true beginning of Mitsubishi HC Capital, and moving to a nextphase.
Countless internal discussions took place in the formulation of the 2025 MTMP. Together
with the fundamental idea of creation alongside every employee, these discussions
resulted in the plan that I am proud to say is worthy of being our first Medium-termManagement Plan.
Everyone at the Mitsubishi HC Capital Group will come together as one to execute the2025 MTMP toward the realization of Our 10-year Vision, announced in May of last year.
Please allow me to explain some more about the plan. Please take a look at page 2 onthe bottom right.

1This is our agenda for today.
After first giving a general overview of “1. The direction the Mitsubishi HC Capital Groupshould take and the outline of the 2025 MTMP” and “2. Financial and Non-Financial
Targets”, I would then like to lead into the details of our approach to the Group’s Value
Creation Process and our strategies.
For “7. Basic Management Policy and the medium- to long-term management direction”,
I have included some materials published on May 16, 2022 for your reference.

Let’s turn to page 4.

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3Here, we have included the direction the Mitsubishi HC Capital Group should take andthe outline of the 2025 MTMP.
Our Group has established “Together we innovate, challenge and explore the frontiers ofthe future” as Our 10-year Vision. In order to achieve this vision, we will proceed with theevolution and layering of business models by developing services and promoting
business investment, utilizing tangible and intangible assets, such as data and otherelements, to their fullest potential.
For the promotion of the above, we will aim for sustainable growth by solving
environmental, social, and economic issues. At the same time, we will aim to enhance
our medium- to long-term corporate value by achieving an optimal balance sheet basedon well-balanced growth potential, return on capital, and financial soundness.
In pursuing this direction, the 2025 MTMP is positioned as the “hop” plan, the first of our“hop,” “step,” and “jump” three Medium-term Management Plans toward Our 10-year
Vision.
During the 2025 MTMP period, we will address “sowing seeds” and “gaining a solidfoothold” leading to a leap to the “step” and “jump” plans to follow. As we execute theseinitiatives, we aim to accomplish both our financial and non-financial targets.
I will go into more details on pages 6 and 7. Turning now to page 6.

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At first, I will explain the financial targets in the management plan.
For FY2025, the last fiscal year of the 2025 MTMP, we will aim for targets of 160.0 billion
yen in net income, approximately 1.5% ROA, and approximately 10% ROE. We are also
aiming for a payout ratio of 40% or higher over the course of the 2025 MTMP period. We
will return profits to shareholders by distributing dividends and sustainably increase thetotal amount of dividend payment through profit growth.
This plan and its targets have been established with the prerequisite of maintaining
external A ratings, indicators of our financial soundness. As such, we aim to establish
both a sound financial base and an active investment strategy.
Let’s look at page 7.

6Here, I will explain our non-financial targets.
Our non-financial targets have been established to ascertain that our Value Creation
Process (which I will describe shortly) is functioning effectively, that we are expanding
our financial capital through the accumulation of non-financial capital, and to measure
our progress toward achieving Our 10-year Vision.
Our Value Creation Process is not something that can be simply created and then set
aside. It is necessary to verify whether it is being implemented and whether it is in fact
generating value.
Although some of the KPIs such as the level of fulfillment of a talent portfolio, results ofthe employee engagement survey, and Scope 3 GHG emissions amounts are merelyqualitative, we believe these KPIs are highly significant for our Group and that we needto move ahead with the establishment of various frameworks and implementation ofinitiatives, and identify even more specific and effective targets during the 2025 MTMP
period. This is our reason for establishing those qualitative targets.
By steadily achieving these targets, I hope to earn the approval of each of ourstakeholders, with their realization that Mitsubishi HC Capital has changed for the better.
Please look at page 9.

78Here, we establish the position of the 2025 MTMP.
We have defined our medium- to long-term management direction in May 2022, which
includes the Basic Management Policy and Our 10-year Vision, to clarify the direction
our Group should take. These are shown on the left-hand side of the page.
With these in mind, in the boxes to their right, we have refined our Group’s Value
Creation Process.
This Value Creation Process establishes fundamentally how Mitsubishi HC Capitalshould create value, and the 2025 MTMP has been formulated with the process as aguideline.
And so, in the boxes on the far right, the 2025 MTMP has been positioned as the “hop” in“hop,” “step,” and “jump,” our three Medium-term Management Plans toward achieving
Our 10-year Vision.
While achieving our Financial and Non-Financial targets (which I explained earlier) is amatter of course, “sowing seeds” in new domains and “gaining a solid foothold” by
restructuring and redefining existing businesses will lead us to a leap to the “step” and“jump” plans.
I would like to use the next three pages to explain what our Group’s Value Creation
Process is all about. Let’s look at page 10.

9This page gives an overall view of the Value Creation Process.
While this diagram shows the flow from inputs of capital to outcomes as being similar toa standard value creation process, this process represents our own unique story,
illustrating how we create value and accumulate and expand capital, and ultimately how
we increase our corporate value, by defining what capital means to our Group andutilizing it throughout our business activities.
This diagram shows how we will use our Group’s financial capital and non-financial
capital, specified on the left, to drive our business activities.
Our business activities are the engine powering the Value Creation Process. The threeelements shown in the red boxes in the middle of the page are areas established from a
non-financial capital perspective to work on going forward that will be vital toimplementing and bolstering our strengths while mitigating our weaknesses. Theseelements also show the direction our future business activities must face in order torealize the evolution and layering of our five business models, shown in shades of blueon the right.
I will use the next page to explain outcomes, mentioned on the far-right of the page.
These outcomes are what we can achieve by turning over the engine—that is, ourbusiness activities—and generating value for our various stakeholders.
Let’s look at page 11.

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On this page, you can see how the Value Creation Process outcomes I just mentioned
can be reached with the expansion of financial capital through the accumulation of nonfinancial capital.
With respect to our five kinds of non-financial capital—human capital, intellectual capital,manufacturing capital, natural capital, and social and relation capital—we haveestablished the themes a-g which must be addressed going forward.
By realizing these themes, we will accumulate non-financial capital, and link this to theexpansion of financial capital.
As I explained earlier on page 7 with the Non-Financial targets, through steadily pursuingthose KPIs and targets, we aim to expand our financial capital by accumulating nonfinancial capital.
Please look at page 12.

11This page shows the relationship between the Value Creation Process, which I havebeen talking about, and the 2025 MTMP.
As you can see in the diagram to the right, the 2025 MTMP comprises businessstrategies, corporate functions strategies, frameworks to promote transformation, andFinancial and Non-Financial targets.
Business activities in the Value Creation Process apply to business strategies andcorporate functions strategies. We will develop frameworks to promote transformation,
which support those strategies, and aim to achieve Financial and Non-Financial targets.
Beginning with the next page, I would like to talk in some detail about these strategies.
Please look at page 14.

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First, I will explain business strategies in detail. This page contains information about thefive business types which precede our business strategies.
With the premise of proceeding with the evolution and layering of business models inorder to achieve business portfolio transformation, we have classified our businessmodels into five types, and defined the characteristics and the direction of future
initiatives for each of them.
In terms of overall direction, by simultaneously working on enhancing the profitability andefficiency of existing businesses, shifting such businesses to high value-added services,and developing new businesses, we will move ahead with the evolution and layering ofour business models.
The characteristics, direction, and examples of each business type are shown in thediagram, and although I will not explain them in detail, please allow me to explain ourvision of how we will transform the entire business portfolio by using these businesstypes on the next page.
Please take a look at page 15.

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The cross-sectional diagram on the left gives a general idea of how the five businessmodels I explained on the last page will change over time.
① Customer finance and ② asset finance are positioned as profit bases for generating
stable cash flows from our Group’s firm customer bases. On the other hand, given thatthese are competitive fields and that returns on some assets are relatively low, inaddition to strengthening their profitability and steadily proceeding with the reduction of
low-profitability assets, we will enhance the profitability and efficiency of our existing
businesses.
Furthermore, we will maintain and expand the customer bases of ① customer financeand ② asset finance, and shift these existing businesses to being high value-added
services—namely ③ finance + services and ④ data utilization platform services—andincrease their returns by improving customer experience.
We will then proceed with the development of new businesses, such as ④ datautilization platform services and ⑤ the asset utilization business, which we will focus onas the pillars of medium- to long-term profit growth, in addition to ③ finance + services.
The top of the two pie charts on the right shows the change in the composition of assets
between now and FY2025, while the bottom shows the change in income composition.
As you can see, our vision is to increase net income without greatly expanding assets.
As I explained earlier regarding the financial targets, we are planning to improve ROAand ROE as well as net income.

In order to achieve our financial targets, we need to transform our profit sources. The
composition of assets and profits pie charts show this vision.
Please look at page 16.

15This page describes our financial strategies that support the evolution and layering of ourbusiness models in the context of our business strategies.
As we saw on previous pages, we plan to realize profit growth through the evolution andlayering of our business models. For this purpose, it is our policy to actively invest from a
medium- to long-term perspective in high value-added businesses, including thedevelopment of new businesses, using cash flows after paying dividends.
For the purposes of supporting this effort, we will achieve medium- to long-term return on
capital and financial soundness by optimizing our balance sheet, and then maximize ourcorporate value.
Specifically, we will give consideration to both ROE as our target for medium- to longterm return on capital, and maintaining our A ratings as our means of achieving thefinancial soundness required for stable funding.
Please take a look at page 17.

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On pages 17 and 18, I will explain our business strategies by segment.
Note that the arrows to the right of each segment represent a general idea of growth of
net income and total assets.
In the Customer Solutions Business, we will leverage our solid customer base to achievebusiness portfolio transformation through the establishment of a new sales process byutilizing data and digital technologies and accelerating the creation of collaboration
businesses.
In the Global Business, we will improve profitability through the strategic allocation ofmanagement resources considering regional characteristics.
In the Aviation Business, recognizing that the industry overall is trending toward a
recovery from the COVID-19 pandemic, we will recover profitability early on bystrengthening group synergy while simultaneously developing a new business base forthe future.
And in the Logistics Business, we will contribute to solving social issues in the logistics
field by further strengthening our marine container and North American railway freight
car leasing business bases and developing new businesses.
These segments are to drive the growth of Mitsubishi HC Capital in terms of profit as
defined in the 2025 MTMP.
Now, let’s look at page 18.

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In the Environment & Energy Business, we will maintain our position as a leading
renewable energy operator in Japan, expand our business domains, and increase added
value accordingly.
In the Real Estate Business, we will contribute to building a sustainable social
infrastructure through our real estate investment and lending business and asset
management business.
In the Mobility Business, we will expand profits by strengthening and developing EVrelated businesses in consideration of the decarbonization needs of society.
These segments, compared to the segments we talked about on page 17, are only
expected to see gentle growth in terms of profit in the 2025 MTMP period, however they
represent the phases upon which to develop sowing seeds and gaining a firm foothold
for the leap to the upcoming “step” and “jump” medium-term plans.
At the same time, they are also the segments which will lead initiatives for key themes
across segments, which we will look at on the next page.
Please take a look at page 19.

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The four key themes addressed here have been identified as areas that, rather thanbeing addressed by each segment individually, have the potential to lead to new
business through the concerted efforts of multiple segments, across segments. They arehydrogen, EVs, logistics, and decarbonization solutions.
Further, rather than our Group pursuing these themes alone, by working together with
our partners, these themes will lead to Our 10-year Vision of contributing to a prosperous
and sustainable future by creating social value. Accordingly, they have been positioned
as important strategies in the “step” and “jump” plans.

As I am sure you will have understood based on this explanation, for this 2025 MTMP,
rather than promoting business strategies in each individual segment, we will also befirmly pursuing key themes across segments, with the evolution and layering of ourbusiness models positioned as central pillars.
We will move forward with medium- to long-term sustainable business growth throughthis vertical and horizontal integration.
Now, let’s look at page 21.

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In order to execute the business strategies I have outlined thus far, it is essential that weenhance the corporate functions that will support them. The 2025 MTMP describes fourmain corporate functions strategies.
The first is fostering and securing talent. In addition to enhancing employee engagement,
we will develop a talent portfolio which contributes to the evolution and layering of ourbusiness models.
The second is bolstering our financial base and internal organizational base. Here, wewill procure stable and competitive funds, expand funding capacity, and develop credit
examination and management frameworks and IT systems in response to each of ourbusiness strategies.
The third is strengthening our corporate governance framework. This strategy aims toenhance integrated risk management under the premise of promoting group-wide unified
management by strengthening the consolidated management framework.
The final strategy is enhancing stakeholder engagement. By enhancing the financial andnon-financial information to be disclosed and diversifying the means to dispatch
information, we aim to enhance communication with our external stakeholders.
Let’s move on to page 23.

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This will be the last point I will cover.
To achieve Our 10-year Vision, we believe it is essential to not simply stay on
conventional paths. By implementing three approaches—① “laying” the foundation oftransformation, ② “creating” transformation, and ③ “promoting” transformation—we aim
to realize transformation at our Group.
In ①, we will foster all employees’ awareness of transformation under the guidance ofmanagement.

While we did create opportunities for communication between management andemployees during the formulation of the 2025 MTMP, through continually implementing
such initiatives, we will continue to foster employee awareness into the future. In a video
message addressed to all employees when I assumed the position of President & CEO,I proclaimed—in my own words, in both Japanese and English—that there is no future
for us if we simply stay on conventional paths. We must all remain constantly aware oftransformation, and I stressed the importance of not fearing failure and approaching
challenges with positive attitude.
In ②, with the need to develop frameworks so that efforts contributing to transformation
can be actively launched, we will proceed with the full-fledged start of a program to seekbusiness ideas, the intra-entrepreneurship and the introduction of a new evaluation
system.

In ③, by moving ahead with the establishment of the Innovation Investment Fund andthe delegation of authority to front offices, we will develop an agile discussion framework
for the promotion of flexible and prompt decision-making, and promote investment into
R&D. That’s all for my presentation.

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