Mitsubishi HC Capital : Financial Results for the 2nd Quarter of Fiscal Year Ending March 31, 2023

Financial Results

for the 2nd Quarter of Fiscal Year Ending March 31, 2023

Mitsubishi HC Capital Inc.

November 10, 2022

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 based on 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.
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• 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

• MHC: Mitsubishi HC Capital
• MUL: Mitsubishi UFJ Lease & Finance
• HC: Hitachi Capital
• JSA: Jackson Square Aviation (Aircraft leasing company)
• ELF: Engine Lease Finance (Aircraft engine leasing company)
• CAI: CAI International (Marine container leasing company)
• BIL: Beacon Intermodal Leasing (Marine container leasing company)

• Net income:
  Net income attributable to owners of the parent
• Segment assets:
  "Operating assets" + "equity-method investments" + "goodwill" + "investment securities, etc."
• • Segment assets for FYE3/2022:
    Converted into reportable segments after the organizational change conducted on April 1, 2022 in a simplified manner as reference values

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Index

1. Highlights

1. Financial Results for 2Q FYE3/2023 III. Segment Updates
   IV. Financial Forecast for FYE3/2023

V. Appendix

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1. Highlights

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Highlights

Net income increased by 4.5% YoY mainly thanks to the profit contribution from CAI, and the business growth of the subsidiaries in Europe and Americas.

• Gross profit for 2Q FYE3/2023 increased by 16.7 billion yen (10.4%) YoY to 177.9 billion yen thanks to the profit contribution from CAI, a marine container leasing company in the U.S. that became our wholly- owned subsidiary in November 2021, the business growth of the subsidiaries mainly in Europe and Americas in the Global Business segment, and an increase in gains on sales related to real estate business.
• Net income for 2Q FYE3/2023 increased by 2.6 billion yen (4.5%) YoY to 63.1 billion yen thanks to a decrease in credit costs in addition to an increase in gross profit, despite the absence of large gains on sales of strategic shareholdings (pre-tax basis: 26.7 billion yen), which were recorded in 2Q FYE3/2022.

The progress of net income against the financial forecast was 57.4%. The forecast remains unchanged due to the uncertainties in the external environment.

• The progress against the financial forecast of 110.0 billion yen in net income was 57.4%.
• The financial forecast remains unchanged taking into account the growing uncertainties in the external environment, such as the risk of recession mainly in Europe and the U.S., in the second half of this fiscal year.

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