Mitsubishi UFJ Lease & Finance : FY3-2020 3rd Quarter Results

FY3/2020 3rd Quarter Results

(Tokyo Stock Exchange / Nagoya Stock Exchange: 8593)

February 13, 2020

Mitsubishi UFJ Lease & Finance Company Limited

Index

• FY3/2020 3rd Quarter Results

• FY3/2020 Forecasts

• Appendix

1

• FY3/2020 3rd Quarter Results
• FY3/2020 Forecasts

• Appendix

2

Financial Highlights

• Progress toward our published initial forecasts exceeded 80% thanks mainly to gains on sales related to real estate and aviation
• Cumulative consolidated income numbers for Q3 set record highs

									(billion yen)
			(b) YOY Change	(d) YOY			*4
		(a) FY3/2020	(e) FY3/2019	(f) Published (g) Progress
		Change
		3Q		(c) Exchange	3Q	Full-year		Rate
			(%)
				Rate Effects		Forecast
1	Revenues	694.2	+57.9	-0.6	+9.1%	636.2	865.0		80.3%
2	Gross Profit	142.9	+26.8	-0.2	+23.1%	116.0	178.0		80.3%
3	Operating Income	78.8	+20.9	-0.1	+36.2%	57.8	87.0		90.6%
4	Recurring Income	80.6	+17.1	-0.1	+27.0%	63.4	94.0		85.8%
5	Net Income *1	57.1	+6.6	-0.1	+13.2%	50.5	70.0		81.7%
6	New Transactions Volume	1,351.6	+147.0	-2.0	+12.2%	1,204.6
7	USD Exchange Rate (*)	$1=¥109.15		-		$1=¥109.61
* Exchange rate applied to profit and loss statement of overseas subsidiaries ($)
8	Total Operating Assets	5,078.7	+32.2*2	-51.2	+0.6%*2	5,046.4 *3
9	USD Exchange Rate (**)	$1=¥107.92		-		$1=¥111.00

**Exchange rate applied to balance sheet of overseas subsidiaries ($)

*1	3Q net income attributable to owners of the parent
*2	Total operating assets is change from FY3/2019
*3	FY3/2019	3
*4	Above figures are FY3/2020 forecasts as of February 13, 2020

Increase/Decrease in Net Income

Attributable to Owners of the Parent

Gross

Operating

(billion yen)

Profit

Expenses

Credit

+26.8

-6.1

Extraordinary

Net Income

Cost

Others

Tax

-0.8

-2.7

Income/Loss

Expenses

Attributable to

-1.4

-9.0

Owners of the

②

Parent

①

③

④

⑤

+6.6

⑥

57.1

50.5

Positive Factor

Negative Factor

FY3/2019

FY3/2020

3Q

3Q

① Gross Profit

 Increased earnings mainly due to gains on sales related to real estate and aviation

② Operating Expenses

 Fortifying the growth foundation in Domestic/Overseas Customers and priority industry

domains, amongst other factors

③ Credit Cost

 Increase at a slower pace than initial assumptions (number for the full term likely to be in

line with initial assumptions)

④ Others

 Decrease on reaction to foreign exchange gains posted in FY3/2019 Q3, smaller equity

method income, amongst other factors

⑤ Extraordinary Income/Loss

 Decrease on reaction to gains on sales of strategic shareholdings and shares of affiliates,

amongst other factors

⑥ Tax Expenses

 YOY increase on smaller impact of U.S. tax reform and higher profits

4

Increase/Decrease in Divisional Earnings

Divisional Earnings: gross profit (prior to allocation of financial expenses) plus equity-method earnings and dividend income of each division

Environment&

Infrastructure&

Divisional

Investment Consolidated

Earnings

Energy

Healthcare

Real

Logistics

0

Adjustment

+35.8

+4.3

+0.3

Estate

0

+4.1

Domestic/

Aviation

+10.5

Overseas

+9.5

Customers

+6.7

191.9

156.1

	Positive Factor
FY3/2019	FY3/2020
3Q	3Q

			(billion yen)
	Increase/	Main Factor	Divisions and
	Decrease	Businesses Involved
		Increased earnings	Departments and
		subsidiaries in Japan
Domestic/		following the inclusion
+6.7	responsible for Domestic
Overseas	of ENGS to
Customers, and overseas
Customers		consolidated accounts,	bases responsible for
		amongst other factors	Overseas Customers
		Increased lease
Aviation	+9.5	revenues of aircraft	Aviation Business
and engines and gains	Department, JSA, ELF
		on sales of aircraft
		Gains on sales of real
	+10.5	estate in Japan and	Real Estate Business
Real Estate	overseas; Increased	Department, MULP, MURI,
		lease and interest	DAF, Miyuki Building, others
		revenues, etc.
		Increased lease	Logistics Business
		Department, Ship Finance
	+4.1	revenues from
Logistics	Department, Mobility Service
containers and freight
	Business Department, BIL,
		cars
		MULR, MAL, others
		Gains on sales of
Environment	+4.3	solar-related assets	Environment & Energy
and increased	Business Department, MEI,
& Energy
		revenues from	Solar Energy SPC, others
		electricity power sales
	+0.3	Earnings growth of	Healthcare Business
Healthcare	Department, Japan Medical
group companies
	Lease, others
Infra-			Infrastructure Business
0	Occurrence of front-	Department, Investment
structure &
loaded cash out	Business Department, JII,
Investment
		invested businesses

		Domestic/				Environment &		Infrastructure	Consolidated	Consolidated
		Overseas	Aviation	Real Estate	Logistics	Healthcare
		Energy	& Investment	Adjustment	Total
		Customers
1	FY3/2020	66.6	58.3	36.6	14.9	9.1	3.6	2.0	0.5	191.9
3Q
	FY3/2019
2	59.8	48.7	26.0	10.7	4.7	3.2	2.0	0.5	156.1
3Q
										5

New Transactions Volume

					(billion yen)
			FY3/2020	YOY Change	FY3/2019
	3Q	(%)	3Q
1	Leases	663.5	+4.7%	633.7
2		Finance Leases	374.5	-3.8%	389.5
3		Operating Leases	288.9	+18.3%	244.1
4	Installment Sales	54.4	-13.8%	63.1
5	Loans and Others	633.6	+24.8%	507.7
6		Factoring	260.6	+18.9%	219.2
7		Real Estate Finance	156.4	+116.7%	72.2
8		Others	216.5	+0.1%	216.2
9	Volume of All New Transactions	1,351.6	+12.2%	1,204.6
10	Domestic	852.1	+4.8%	812.7
11		Leases	378.1	-2.7%	388.6
12		Installment Sales	54.4	-13.8%	63.1
13		Loans and Others	419.5	+16.2%	360.9
14	Overseas	499.5	+27.5%	391.8
15		Customer Finance	269.8	+30.0%	207.5
16		Others	229.6	+24.6%	184.3
17	Volume of All New Transactions	1,351.6	+12.2%	1,204.6
					6

Operating Assets

									(billion yen)
				FY3/2016	FY3/2017	FY3/2018	FY3/2019	FY3/2020	Change from
		3Q	FY3/2019 (%)
	1	Leases	3,040.8	3,272.0	3,269.6	3,473.8	3,505.4	+0.9%
	2		Finance Leases	1,480.3	1,514.7	1,543.9	1,579.8	1,562.2	-1.1%
	3		Operating Leases	1,560.4	1,757.2	1,725.7	1,893.9	1,943.1	+2.6%
	4	Installment Sales	245.8	252.9	255.5	249.5	215.5	-13.6%
	5	Loans and Others	1,339.7	1,351.6	1,384.0	1,323.1	1,357.7	+2.6%
	6	Total Operating Assets	4,626.4	4,876.5	4,909.2	5,046.4	5,078.7	+0.6%
	7	Domestic	3,147.4	3,208.5	3,260.1	3,134.0	3,128.8	-0.2%
	8		Leases	1,814.5	1,855.9	1,852.1	1,902.5	1,897.2	-0.3%
	9		Installment Sales	245.8	252.9	255.5	249.5	215.5	-13.6%
	10		Loans and Others	1,086.9	1,099.6	1,152.5	982.0	1,016.0	+3.5%
	11	Overseas	1,479.0	1,668.0	1,649.0	1,912.3	1,949.8	+2.0%
	12		Customer Finance	226.5	258.1	310.2	427.6	429.2	+0.4%
	13		Others	1,252.5	1,409.9	1,338.8	1,484.7	1,520.5	+2.4%
	14	Total Operating Assets	4,626.4	4,876.5	4,909.2	5,046.4	5,078.7	+0.6%
									7

Credit Cost

	FY3/2016	FY3/2017	FY3/2018	FY3/2019
1	MUL	2.6	-2.9	-0.0	-1.8
2	Domestic Subsidiaries	2.3	0.4	1.5	0.9
3	Overseas Subsidiaries	4.5	2.1	0.9	2.1
4	Total Net Credit Cost	9.4	-0.4	2.4	1.1
5	Real Estate Sector	2.9	-0.6	0.7	-1.2
6	Manufacturing Sector	-0.1	-0.1	0.4	1.3
7	Transportation Sector	3.1	1.6	0.7	-1.0
8	Others*	3.5	-1.3	0.6	2.0
9	Total Net Credit Cost	9.4	-0.4	2.4	1.1

		(billion yen)
FY3/2019	FY3/2020		YOY
3Q	3Q		Change
-0.2	0.5		+0.8
0.1	0.5		+0.4
2.3	1.9		-0.3
2.1	3.0		+0.8
-0.1	-0.0		+0.1
1.0	0.9		-0.1
-0.7	0.3		+1.0
1.9	1.8		-0.1
2.1	3.0		+0.8

* Includes general credit costs calculated based on the historical rate of credit loss and ENGS credit costs	8

Funding Structure

									(billion yen)
				FY3/2017	FY3/2018	FY3/2018	FY3/2019	FY3/2020	Change from
				3Q	FY3/2019 (%)
	1	Borrowing	2,169.4	2,395.1	2,444.7	2,492.0	2,688.5	+7.9%
	2		Yen	1,418.9	1,449.4	1,470.6	1,352.2	1,391.4	+2.9%
	3		Foreign Currency	750.4	945.7	974.1	1,139.8	1,297.1	+13.8%
	4	CP (Commercial Paper)	853.6	835.9	807.4	742.2	683.5	-7.9%
	5	Securitization	168.8	137.4	165.8	145.8	114.2	-21.6%
	6	Corporate Bonds	716.8	773.5	833.7	1,060.3	1,069.1	+0.8%
	7		Yen	385.0	452.0	496.0	583.5	635.8	+9.0%
	8		Foreign Currency	331.8	321.5	337.7	476.8	433.3	-9.1%
	9	Total Funding	3,908.7	4,142.0	4,251.7	4,440.3	4,555.4	+2.6%
	10	Direct Funding Ratio *1	44.5%	42.2%	42.5%	43.9%	41.0%	-2.9P
	11	Foreign Currency Funding Ratio *2	27.7%	30.6%	30.9%	37.0%	38.0%	+1.0P

*1	CPs, securitization and corporate bonds as a proportion of total funding	9
*2	Foreign-currency loans and CBs as a proportion of total funding

• FY3/2020 3rd Quarter Results
• FY3/2020 Forecasts

• Appendix

10

FY3/2020 Forecasts

• Favorable progress toward our initial forecasts but earnings forecasts maintained unchanged as credit cost and asset re-evaluation likely to occur in FY3/2020 4Q

							(billion yen)
			FY3/2020	YOY Change	YOY Change	FY3/2019
				(%)
1	Revenues		865.0	+0.7		+0.1%	864.2
2	Gross Profit		178.0	+19.6		+12.4%	158.3
3	Operating Income		87.0	+6.6		+8.2%	80.3
4	Recurring Income		94.0	+6.3		+7.3%	87.6
5	Net Income Attributable		70.0	+1.2		+1.7%	68.7
to Owners of the Parent
6	Dividend per Share		¥25.00	+¥1.50		-	¥23.50
7	Payout Ratio		31.8%	+1.4P		-	30.4%
	*1	Above figures are FY3/2020 forecasts as of February 13, 2020		11
	*2	Exchange rate for the above forecasts is set at $1 = 110 yen

• FY3/2020 3rd Quarter Results

• FY3/2020 Forecasts
• Appendix

12

Details of New Transactions Volume

by Transaction Type

							(billion yen)
				FY3/2020	YOY Change	YOY Change	FY3/2019
		3Q	(%)	3Q
	1	Leases	663.5	+29.8	+4.7%	633.7
	2		IT / Office Equipment	116.9	+8.4	+7.8%	108.5
	3		Industrial Machinery	63.1	-11.4	-15.3%	74.5
	4		Civil Eng. & Construction Machinery	26.1	-3.5	-12.0%	29.6
	5		Transportation Equipment	250.1	+45.6	+22.3%	204.4
	6		Medical Equipment	39.1	+0.0	+0.2%	39.0
	7		Commercial & Service Equipment	42.9	-11.2	-20.8%	54.1
	8		Others	125.1	+1.8	+1.5%	123.2
	9	Installment Sales	54.4	-8.6	-13.8%	63.1
	10		IT / Office Equipment	1.4	-0.4	-23.9%	1.9
	11		Industrial Machinery	8.1	+0.6	+9.3%	7.4
	12		Civil Eng. & Construction Machinery	18.7	-5.4	-22.4%	24.2
	13		Transportation Equipment	2.7	-1.0	-28.4%	3.8
	14		Medical Equipment	6.8	+0.3	+4.7%	6.5
	15		Commercial & Service Equipment	7.3	-1.7	-19.1%	9.0
	16		Others	9.1	-0.9	-9.8%	10.1
	17	Loans and Others	633.6	+125.8	+24.8%	507.7
	18		Factoring	260.6	+41.3	+18.9%	219.2
	19		Real Estate Finance	156.4	+84.2	+116.7%	72.2
	20		Others	216.5	+0.2	+0.1%	216.2
	21	Volume of All New Transactions	1,351.6	+147.0	+12.2%	1,204.6

13

Financial Performance -

Profit & Loss Statement (1)

						(million yen)
* The bottom percentage figures with P (point)	FY3/2016 3Q	FY3/2017 3Q	FY3/2018 3Q	FY3/2019 3Q	FY3/2020 3Q
show year-on-year percentage change	15/4~15/12	16/4~16/12	17/4~17/12	18/4~18/12	19/4~19/12
1	Revenues	610,989	615,141	644,988	636,260	694,249
+11.6%	+0.7%	+4.9%	-1.4%	+9.1%
2	Leases	497,988	506,582	526,012	519,371	557,532
+12.1%	+1.7%	+3.8%	-1.3%	+7.3%
3	Installment Sales	64,080	68,945	71,079	66,912	57,433
+2.6%	+7.6%	+3.1%	-5.9%	-14.2%
4	Loans	25,605	25,157	26,205	21,499	30,242
+1.4%	-1.7%	+4.2%	-18.0%	+40.7%
5	Others *	23,315	14,455	21,691	28,477	49,041
+49.9%	-38.0%	+50.1%	+31.3%	+72.2%
6	Cost of Revenue	486,110	502,946	525,735	520,166	551,300
+8.2%	+3.5%	+4.5%	-1.1%	+6.0%
7	COR / Revenues	79.6%	81.8%	81.5%	81.8%	79.4%
(Cost of goods sold ratio)	-2.5P	+2.2P	-0.3P	+0.3P	-2.4P
8	Leases, COR	391,398	405,319	418,136	407,856	425,975
+7.3%	+3.6%	+3.2%	-2.5%	+4.4%
9	Installment Sales, COR	59,003	64,126	66,248	62,314	53,289
+3.3%	+8.7%	+3.3%	-5.9%	-14.5%
10	Financial Expenses	28,839	26,021	31,857	34,989	44,309
+48.2%	-9.8%	+22.4%	+9.8%	+26.6%
11	Others, COR *	6,868	7,479	9,491	15,006	27,725
-14.3%	+8.9%	+26.9%	+58.1%	+84.8%
12	Gross Profit	124,879	112,194	119,253	116,093	142,948
+27.3%	-10.2%	+6.3%	-2.6%	+23.1%
13	Gross Profit/Revenues	20.4%	18.2%	18.5%	18.2%	20.6%
(Gross profit margin)	+2.5P	-2.2P	+0.3P	-0.3P	+2.4P

* Includes purchase and sales of used machinery, dividends from real estate investment and	14
sales of electricity sales

Financial Performance -

Profit & Loss Statement (2)

						(million yen)
* The bottom percentage figures with P (point)	FY3/2016 3Q	FY3/2017 3Q	FY3/2018 3Q	FY3/2019 3Q	FY3/2020 3Q
show year-on-year percentage change	15/4~15/12	16/4~16/12	17/4~17/12	18/4~18/12	19/4~19/12
14	SG&A Expenses	56,413	50,960	55,379	58,206	64,094
+26.5%	-9.7%	+8.7%	+5.1%	+10.1%
15	Personnel Expenses	24,384	24,801	27,112	27,194	30,286
+18.7%	+1.7%	+9.3%	+0.3%	+11.4%
16	Non-Personnel	25,823	24,559	26,312	27,020	30,075
Expenses	+12.9%	-4.9%	+7.1%	+2.7%	+11.3%
17	Allowance	6,204	1,599	1,954	3,991	3,732
+420.7%	-74.2%	+22.3%	+104.2%	-6.5%
18	Overhead Ratio	40.2%	44.0%	44.8%	46.7%	42.2%
(Overhead expenses divided by GP)	-4.1P	+3.8P	+0.8P	+1.9P	-4.5P
19	Operating Income	68,465	61,234	63,873	57,887	78,854
+28.0%	-10.6%	+4.3%	-9.4%	+36.2%
20	Operating Income / Revenues	11.2%	10.0%	9.9%	9.1%	11.4%
(Operating Income Margin)	+1.4P	-1.2P	-0.1P	-0.8P	+2.3P
21	Recurring Income	71,677	65,598	68,467	63,496	80,647
+29.1%	-8.5%	+4.4%	-7.3%	+27.0%
22	Extraordinary Income	98	4,200	2,774	6,983	4,688
-88.0%	+4,162.6%	-34.0%	+151.7%	-32.9%
23	Extraordinary Loss	80	9	20	870	0
+861.1%	-88.0%	+117.6%	+4,058.8%	-100.0%
24	Net Income Attributable to	44,633	43,410	45,111	50,528	57,180
Owners of the Parent	+33.7%	-2.7%	+3.9%	+12.0%	+13.2%
						15

Financial Performance - Balance Sheet (1)

* The bottom percentage figures with P (point)					(million yen)
show year-on-year percentage change from	FY3/2016	FY3/2017	FY3/2018	FY3/2019	FY3/2020 3Q
the end of the previous fiscal year
1	Total Equity	642,366	686,378	731,124	778,582	793,455
+3.4%	+6.9%	+6.5%	+6.5%	+1.9%
2	Total Assets	5,121,253	5,388,844	5,552,712	5,790,929	5,891,864
+1.7%	+5.2%	+3.0%	+4.3%	+1.7%
3	Operating Assets	4,626,455	4,876,553	4,909,279	5,046,490	5,078,716
+1.9%	+5.4%	+0.7%	+2.8%	+0.6%
4	Leases	3,040,849	3,272,018	3,269,679	3,473,810	3,505,401
+3.9%	+7.6%	-0.1%	+6.2%	+0.9%
5	Installment Sales	245,882	252,907	255,553	249,500	215,571
+5.1%	+2.9%	+1.0%	-2.4%	-13.6%
6	Loans	1,241,831	1,245,555	1,233,218	1,114,470	1,103,829
-1.3%	+0.3%	-1.0%	-9.6%	-1.0%
7	Others	97,892	106,072	150,827	208,708	253,914
-20.7%	+8.4%	+42.2%	+38.4%	+21.7%
8	Impaired Assets	27,921	34,144	34,892	27,286	23,882
-16.5%	+22.3%	+2.2%	-21.8%	-12.5%
9	Allowance	16,302	16,365	15,658	15,103	14,425
10	Net Balance of	11,618	17,779	19,234	12,183	9,456
Impaired Assets	-39.8%	+53.0%	+8.2%	-36.7%	-22.4%
						16

Financial Performance - Balance Sheet (2)

* The bottom percentage figures with P (point)					(million yen)
show year-on-year percentage change from	FY3/2016	FY3/2017	FY3/2018	FY3/2019	FY3/2020 3Q
the end of the previous fiscal year
11	Equity Ratio	12.0%	12.2%	12.7%	13.0%	13.1%
+0.2P	+0.2P	+0.5P	+0.3P	+0.1P
12	ROE	9.0%	8.4%	9.3%	9.4%	-
+1.0P	-0.6P	+0.9P	+0.1P	-
13	ROA	1.1%	1.0%	1.2%	1.2%	-
+0.2P	-0.1P	+0.2P	+0.0P	-
14	Total Funding	3,908,736	4,142,073	4,251,769	4,440,352	4,555,404
0.0%	+6.0%	+2.6%	+4.4%	+2.6%
15	Indirect Funding	2,169,456	2,395,158	2,444,766	2,492,008	2,688,508
-2.2%	+10.4%	+2.1%	+1.9%	+7.9%
16	Direct Funding	1,739,279	1,746,914	1,807,002	1,948,344	1,866,895
+2.8%	+0.4%	+3.4%	+7.8%	-4.2%
17	CP	853,600	835,900	807,400	742,200	683,500
+2.8%	-2.1%	-3.4%	-8.1%	-7.9%
18	Securitization	168,869	137,484	165,897	145,842	114,272
(Lease Receivables)	-2.7%	-18.6%	+20.7%	-12.1%	-21.6%
19	Corporate Bonds	716,809	773,530	833,705	1,060,302	1,069,123
+4.1%	+7.9%	+7.8%	+27.2%	+0.8%
20	Direct Funding Ratio	44.5%	42.2%	42.5%	43.9%	41.0%
+1.2P	-2.3P	+0.3P	+1.4P	-2.9P
						17

Overview of

Principal Consolidated Companies (1)

							(million yen)
	Mitsubishi UFJ Lease & Finance	Japan Medical Lease	DFL Lease
FY3/2020	MUL's Share: 100%	MUL's Share: 80%
(Parent)
3Q	【Healthcare Business Division】	【Domestic Customers】
	Amount	YOY Change	Amount	YOY Change	Amount		YOY Change
Revenues	354,153	+1.6%	27,659	-0.1%	16,830		+2.6%
Gross Profit	49,806	+3.4%	2,289	+0.9%	1,459		+10.5%
Operating Income	21,710	+14.3%	628	-24.5%	738		+34.9%
Recurring Income	21,562	-2.0%	674	-26.0%	750		+19.4%
Net Income	17,894	-13.8%	433	-26.5%	508		+14.7%
FY3/2020	Amount	Change from	Amount	Change from	Amount		Change from
3Q	FY3/2019	FY3/2019		FY3/2019
Operating Assets	3,041,723	-1.9%	103,419	+2.8%	64,033		-4.8%
Total Assets	4,188,210	-1.1%	106,174	+3.0%	65,762		-4.6%
Total Equity	498,686	+0.3%	15,458	+1.5%	15,151		+3.5%
							(million yen)
	Hirogin Lease	Shutoken Leasing		DRS
FY3/2020	MUL's Share：80%	MUL's Share: 71%	MUL's Share: 100%
3Q	【Domestic Customers】	【Domestic Customers】	【Domestic Customers】
	Amount	YOY Change	Amount	YOY Change	Amount		YOY Change
Revenues	15,318	-4.4%	30,788	+26.8%	19,971		+3.6%
Gross Profit	1,685	-7.6%	2,772	-4.1%	2,048		+0.5%
Operating Income	699	-21.8%	952	-29.1%	686		-3.7%
Recurring Income	729	-27.6%	1,093	-22.8%	685		-4.3%
Net Income	498	-30.3%	766	-21.8%	469		-4.6%
FY3/2020	Amount	Change from	Amount	Change from	Amount		Change from
3Q	FY3/2019	FY3/2019		FY3/2019
Operating Assets	69,749	+3.1%	149,382	-1.4%	62,250		+19.7%
Total Assets	72,722	+3.7%	155,244	-2.1%	66,242		+21.1%
Total Equity	14,679	+3.5%	19,610	+3.9%	7,627		+3.8%
						18

Overview of

Principal Consolidated Companies (2)

(million yen)

FY3/2020

3Q

Revenues

Gross Profit

Operating Income

Recurring Income

Net Income

Diamond Asset Finance	Miyuki Building	MUL Property
MUL's Share: 100%	MUL's Share: 98%	MUL's Share: 100%
【Real Estate Business Division】	【Real Estate Business Division】	【Real Estate Business Division】
Amount	YOY Change	Amount	YOY Change	Amount	YOY Change
10,325	+49.9%	9,709	+70.3%	25,108	+41.8%
4,409	+22.9%	4,495	+39.4%	4,999	+28.6%
3,146	+38.6%	3,965	+42.1%	3,912	+34.9%
3,252	+37.8%	3,859	+49.1%	3,931	+33.8%
2,258	+38.4%	2,530	+48.8%	2,727	+34.7%

	FY3/2020	Amount	Change from	Amount	Change from	Amount	Change from
	3Q	FY3/2019	FY3/2019	FY3/2019
	Operating Assets	248,259	+6.1%	71,947	+5.9%	178,800	+21.0%
	Total Assets	250,446	+6.0%	74,158	+5.5%	242,989	+14.4%
	Total Equity	36,165	+4.9%	32,735	+8.2%	17,947	+12.1%

19

Status on Business Initiatives (1)

◆Outstanding Balance of Solar Projects			(billion yen)
	FY3/2016	FY3/2017	FY3/2018	FY3/2019	FY3/2020 3Q
Total	41.9	76.8	117.4	125.6	138.1
Equity	16.1	39.5	67.9	80.1	86.1
Debt	25.8	37.3	49.5	45.5	52.0
(Reference)			313MW	393MW	420MW
Power Output*1
(Reference) Lease*2	134.1	138.9	152.8	146.7	135.6

◆Outstanding Balance of Real Estate-related		(billion yen)
			FY3/2016	FY3/2017	FY3/2018	FY3/2019	FY3/2020 3Q
Total (A+B)		129.0	156.6	180.5	212.9	235.7
Japan (A)*3		129.0	156.6	167.1	178.4	195.5
	Debt		92.6	90.5	81.7	85.5	94.2
	Equity		36.3	66.1	85.4	92.9	101.3
	Ratio*4		28.2%	42.2%	51.1%	52.0%	51.8%
Overseas (B)				13.4	34.5	40.2
*1	Total power output of project (proportioned according to the contributing interest)
*2	Outstanding solar-related lease as compiled by the Domestic/Overseas Customers
		*3 The sum of the domestic projects of MUL and MUL Realty Investment Company Limited (MURI)	20
		*4 The ratio of equity to a combined total balance of MUL and MURI

Status on Business Initiatives (2)

◆Outstanding Balance of Global Assets Operating Assets	(billion yen)
			FY3/2016	FY3/2017	FY3/2018	FY3/2019	FY3/2020 3Q
Total		1,252.5	1,409.9	1,338.8	1,463.6	1,496.4
Aviation		858.0	996.4	938.9	1,035.4	1,044.6
	Aircraft		650.3	772.7	720.4	791.5	806.3
	Engines		207.6	223.6	218.5	243.9	238.3
Logistics		394.5	413.4	399.8	428.2	451.6
	Marine Containers		160.0	196.7	208.2	215.0	216.9
	Railway/Freight Cars		41.9	46.2	61.1	92.8	130.2
	Shipping		192.6	170.5	130.4	120.2	104.3
◆Owned Global Asset
			FY3/2016	FY3/2017	FY3/2018	FY3/2019	FY3/2020 3Q
Number of Aircraft		125	143	143	160	164
Number of Aircraft Purchased *1		19	36	18	27	16
Number of Aircraft Sold *1		20	18	18	10	12
Number of Aircraft Engines		286	286	276	300	300
Number of Railway/Freight Cars		3,871	4,533	6,615	10,594	14,495
Marine Container Feet		814	1,061	1,221	1,300	1,364
(TEU 1,000) *2
* 1	After consolidated adjustment (do not match with sales profits/losses for aircraft numbers recognized on the P/L)	21
* 2	TEU: Twenty Feet Equivalent Unit (converted into 20ft. containers)

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22

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 MUL and/or its group companies (collectively, the "Group"). These forward-looking statements are inherently subject to a number of

risks and uncertainties that could cause the Group's 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 MUL 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.

The Amount less than one unit is omitted in this presentation, which may cause fraction error in the total amount. MUL undertakes 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.

This presentation is not intended to solicit, offer, sell or market securities in any jurisdiction, and should not be the sole basis for making investment and other decisions.

The reader is cautioned not to place undue reliance on forward-looking statements.