FY3/2022 2nd Quarter Results

Mitsubishi HC Capital Inc.

November 12 , 2021

Index

  1. FY3/2022 2nd Quarter Results

II. Segment Updates

  1. PMI and Management Plan IV. Forecast for FY3/2022

V. Appendix

【Results of FY3/2021 2Q and FY3/2021 in this material】

The company (the former Mitsubishi UFJ Lease & Finance Company Limited (MUL)) executed the business integration with Hitachi Capital Corporation (HC) and changed the trade name to Mitsubishi HC Capital Inc. (MHC) on April 1, 2021. Therefore, both results of FY3/2021 2Q and FY3/2021 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 value.

1

I. FY3/2022 2nd Quarter Results

2

Financial Highlights

Increase YOY in each profit item

  • Gross profit for FY3/2022 2Q increased by 11.5 % YOY to 161.1 billion yen, and net income increased by 63.9% YOY to 60.4 billion yen thanks to the business growth mainly in Europe and the U.S., etc.
  • New assets acquired (new transactions volume) increased by 9.0% YOY to 1,147.2 billion yen.

Forecast for FY3/2022 remains unchanged considering the uncertainty in external environment

  • The progress rate against the forecast for FY3/2022 (net income: 95.0 billion yen) was 63.7%.
  • Forecast for FY3/2022 remains unchanged because there is uncertainty in future external environment and possibility of the occurrence of credit costs in the Aviation business, etc.

Smooth progress of PMI and started full-fledged examination of New Medium-term Management Plan

    • Thanks to lively discussions in each working group, PMI has been progressing smoothly.
    • We started full-fledged examination of new medium-term management plan. We will announce the
      "medium- to long-term management direction" at the time of announcing FY3/2022 results (May 2022).
  • Figures for the sum of consolidated results of MUL and those of HC (IFRS basis) converted into J-GAAP basis in a simplified manner, which are presented as reference value. Therefore, figures YOY are those compared to reference value.

3

Actual Results

  • The cumulative gross profit for FY3/2022 2Q increased by 11.5% YOY to 161.1 billion yen and the quarterly net income attributable to owners of the parent for FY3/2022 2Q increased by 63.9% YOY to 60.4 billion yen, thanks to the business growth mainly in Europe and the U.S., etc.
  • The progress rate against the forecast for FY3/2022 (net income: 95.0 billion yen) was 63.7%.

(a)

(b)

(c)

(d)

(e)=(d)-(c)

(f)

(g)=(e)/(c)

FY3/2021 2Q*4

FY3/2022

Exchange

YOY Change

(Reference)

(Reference)

YOY Change

Rates

(Billion Yen)

MUL

2Q

(%)

HC

Simple Sum

Effects*5

1

Revenues

454.6

372.4

827.0

833.3

+6.2

+9.4

+0.8%

2

Gross Profit

80.8

63.7

144.5

161.1

+16.6

+3.4

+11.5%

3

Operating Income

32.1

14.5

46.7

58.1

+11.3

+3.5

+24.3%

4

Recurring Income

33.6

16.7

50.3

59.0

+8.7

+1.1

+17.3%

5

Net Income*1

24.5

12.3

36.9

60.4

+23.5

+0.7

+63.9%

6

New Transactions Volume

503.7

548.4

1,052.2

1,147.2

+95.0

+37.7

+9.0%

7

Total Segment Assets*2

5,336.6*6

3,268.1*6

8,604.8*6

8,623.9

+19.1*7

+115.7

+0.2%*7

8

ROE

6.3%*8

-

-

10.1%*9

-

9

ROA (Net Income Attributable to

0.8%*8

-

-

1.3%*9

-

Calculated using the annualized

Owners of the Parent on Total Assets)

net income and equity or total assets

adjusted upon the integration, etc.

10

OHR*3

52.8%

65.2%

58.3%

54.9%

-3.4P

(refer to *8 and *9 below for details)

*1 Quarterly net income attributable to owners of the parent

*2 "Operating assets" + "equity method investments" + "goodwill" + "investment securities, etc." (refer to page 41 for details)

*3 SG&A expenses divided by (gross profit + non-operating income/expenses),

but SG&A expenses and non-operating income/expenses do not include credit costs

*4 For MUL, figures are retroactively adjusted along with the change in the accounting method; (refer to page 41 for details)

For HC, figures for IFRS basis converted into J-GAAP basis in a simplified manner, which are presented as reference value

*5 Effects of changes in exchange rates to be applied when incorporating results of overseas subsidiaries (refer to page 47 for details)

*6 FY3/2021

*7 Change from FY3/2021

*8 Numerator: annualized net income by doubling the net income for FY3/2021 2Q that was retroactively adjusted along with the change in the accounting method

Denominator: average of FY3/2020 equity and FY3/2021 2Q equity or of FY3/2020 total assets and FY3/2021 2Q total assets, that were retroactively adjusted along with the change in the accounting method

*9 Numerator: annualized net income by doubling the net income for FY3/2022 2Q Denominator: average of FY3/2022 2Q equity and FY3/2021 equity (calculated by adding up

J-GAAP-based reference figures of the former 2 companies and making adjustment upon the integration) or of FY3/2022 2Q total assets and FY3/2021 total assets (calculated by adding up J-GAAP-based reference figures of the former 2 companies and making adjustment upon the integration))

4

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Mitsubishi HC Capital Inc. published this content on 12 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2021 06:26:10 UTC.