FY3-2022 2nd Quarter Results with script [PDF:7245KB]

This is Takahiro Yanai, President & CEO of Mitsubishi HC Capital. Thank you for taking the time out of your busy schedules to attend today's financial results briefing.

Due to the COVID-19 pandemic, we have decided to hold this briefing via Webcast. Thank you for your understanding and cooperation.

Approximately seven and a half months have passed since we began operations as Mitsubishi HC Capital Inc., on April 1 of this year.

In the first half of this fiscal year, each working group of the sales divisions have been discussing lively, and both employees and the management have been in direct dialogue etc. Thanks to these activities, PMI (Post Merger Integration) has been progressing more smoothly than initially expected.

In addition, we have announced the acquisition of CAI International, a US leading marine container leasing company in June, 2021, as a concrete outcome of the investment synergy born by the business integration. We are currently in the final stages of the acquisition process.

Today, Director, Senior Managing Executive Officer and Head of the Treasury & Accounting Division Inoue will explain the FY3/2022 2nd Quarter Results, based on the FY3/2022 2nd Quarter Results material.

After that I will take my turn to explain PMI progress, the milestones for establishing of Management Plan, and the forecast for FY3/2022.

In the end, we will take your questions and comment.

Inoue, the floor is yours.

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This is Director Inoue. I extend my gratitude to all of you for attending our financial results briefing today.

Now, I would like to explain the financial overview and actual results for FY3/2022 2nd Quarter Results.

For the results of FY3/2021 2Q and FY3/2021 are the sum of consolidated results of Mitsubishi UFJ Lease & Finance and those of Hitachi Capital converted into J-GAAP basis in a simplified manner, and are presented as reference value.

First of all, we describe overall picture of the results as highlights.

Please look at page 3.

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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., and other factors ongoing since FY3/2022 1Q.

New Transactions Volume, new assets acquired increased by 9.0% YOY to 1,147.2 billion yen.

The Forecast for FY3/2022, (Net Income: 95.0 billion yen) remains unchanged, and the progress rate against the forecast for FY3/2022 was 63.7%.

With regard to the detail about what is mentioned at the bottom section of page 3, such as PMI progress and milestones for establishing the new Medium-term Management Plan, etc., President & CEO Yanai will explain these matters afterward.

Then please turn to page 4.

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I would like to explain actual results for FY3/2022 2Q.

At the top of the table, column "c" shows reference figures for FY3/2021 2Q, a simple sum of Mitsubishi UFJ Lease & Finance and Hitachi Capital (hereinafter, "MUL" and "HC"), and the orange-shaded column "d" shows figures for FY3/2022 2Q. YOY change amounts and rates, and exchange rates effects are shown in column "e" to "g".

First, Gross Profit in row 2 increased 11.5% YOY, or by 16.6 billion yen, to 161.1 billion yen. It was mainly because business grew in Europe and the Americas in the "Account Solution" and the marine container leasing business in the "Logistics" was favorable in association with the increased operating rate of owned assets, etc., although gains on sales decreased due to a reactionary fall in the "Real Estate" that were posted in FY3/2021 2Q.

Net Income in row 5 increased 63.9% YOY, or by 23.5 billion yen, to 60.4 billion yen, thanks to the sale of strategic shareholdings to replace the portfolio in FY3/2022 1Q, etc., in addition to the increase in gross profit.

New Transactions Volume in row 6 increased 9.0% YOY, or by 95.0 billion yen, to 1,147.2 billion yen, thanks to increases in new transactions volume primarily in the "Account Solution" in Europe and the Americas.

Total Segment Assets in row 7 increased 0.2% YOY, or by 19.1 billion yen, to 8,623.9 billion yen, thanks to factors including exchange rate effects from a weakening yen, although there were decreases due to drops in new transactions volume in some businesses affected by the COVID-19 pandemic and the sale of strategic shareholdings, etc.

Then please turn to page 5.

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