Financial Results for the 1st Quarter of Fiscal Year Ending March 31, 2023 [PDF:530KB]

Financial Results

for the 1st Quarter of Fiscal Year Ending March 31, 2023

Mitsubishi HC Capital Inc.

August 10, 2022

Index

• Highlights

1. Financial Results for 1Q FYE3/2023

II. Segment Updates

1. Financial Forecast for FYE3/2023 IV. Appendix

1

Highlights

Gross profit increased YOY thanks to the business growth of the subsidiaries in Europe and the U.S., profit contribution from CAI, and other factors.

• Gross profit for 1Q FYE3/2023 increased by 21.9 billion yen (30.8%) YOY to 93.2 billion yen thanks to the business growth mainly of the subsidiaries in Europe and the U.S. in Global Business segment, profit contribution from CAI, a U.S. marine container leasing company that became our wholly-owned subsidiary in November 2021, an increase in gain on sales related to real estate, and other factors.

Net income was almost on par with that for 1Q FYE3/2022, despite the absence of large profits on the sale of strategic shareholdings

• Net income for 1Q FYE3/2023 decreased 1.1 billion yen YOY to 32.0 billion yen, which is almost on par with that for 1Q FYE3/2022, despite the absence of large profits on the sale of strategic shareholdings (pre-tax basis: 26.7 billion yen), which were recorded in 1Q FYE3/2022.
• Net income has been almost in line with the plan, against the net income forecast for FYE3/2023 of 110.0 billion yen (progress: 29.1%).

2

1. Financial Results for 1Q FYE3/2023

3

Financial Results for 1Q FYE3/2023

• The cumulative gross profit for 1Q FYE3/2023 increased by 21.9 billion yen, or 30.8% YOY to 93.2 billion yen, thanks to the business growth mainly of the subsidiaries in Europe and the U.S. in the Global Business segment, profit contribution from a U.S. marine container leasing company CAI, etc.
• Quarterly net income attributable to owners of the parent was 32.0 billion yen, which is almost on par with 1Q FYE3/2022, despite the absence of large profits on the sale of strategic shareholdings (pre-tax basis: 26.7 billion yen), which were recorded in 1Q FYE3/2022. The progress against the forecast for FYE3/2023 (net income: 110.0 billion yen) was 29.1%.

		(a)	(b)	(c)=(b)-(a)	(d)	(e)=(c)/(a)
		1Q	1Q	YOY Change	Exchange Rates	YOY Change
(Billion Yen)	FYE3/2022	FYE3/2023	(%)
	Effects*5
1	Revenues	407.7	460.3	+52.6	+10.0	+12.9%
2	Gross Profit	71.3	93.2	+21.9	+4.0	+30.8%
3	Operating Income	20.7	40.4	+19.7	+1.6	+95.2%
4	Recurring Income	20.6	41.9	+21.3	+1.3	+103.3%
5	Net Income*1	33.1*6	32.0	-1.1	+1.0	-3.4%
6	New Transactions Volume	572.8	609.2	+36.3	+32.2	+6.3%
7	Segment Assets*2	9,345.3*7	9,604.1	+258.7*8	+300.2	+2.8%*8
8	ROA*3	1.4%*9	1.2%*10	-0.2pt
9	ROE*3	11.2%*9	9.4%*10	-1.8pt
10	OHR*4	63.3%	50.4%	-12.9pt

*1	Quarterly net income attributable to owners of the parent	*9 Numerator:	Annualized net income by quadrupling the quarterly net income for 1Q FYE3/2022,
*2	"Operating assets" + "equity method investments" + "goodwill" + "investment		retroactively adjusted in 1Q FYE3/2023
	securities, etc."	Denominator: Average of retroactively adjusted 1Q FYE3/2022 equity or total assets and
*3	Based on net income		FYE3/2021 equity or total assets (calculated by adding IFRS-based figures of
*4	SG&A expenses divided by (gross profit + non-operating income/expenses), but		Hitachi Capital (HC) to those of Mitsubishi UFJ Lease & Finance (MUL) in a
	SG&A expenses and non-operating income/expenses do not include credit costs		simplified manner under J-GAAP as reference figures, then making adjustments
*5	Effects of changes in exchange rates to be applied when incorporating results of		upon the integration)
	overseas subsidiaries (refer to page 28 for details)	*10 Numerator:	Annualized net income by quadrupling the quarterly net income for 1Q FYE3/2023
*6	Figures retroactively adjusted in 1Q FYE3/2023 (refer to page 22 for details)	Denominator: Average of FYE3/2022 and 1Q FYE3/2023 equity or of FYE3/2022 and 1Q
*7	FYE3/2022		FYE3/2023 total assets

*8 Change vs. end of FYE3/2022

4