Hitachi Capital : Business Integration (Presentation Material)

Business Integration

September 24, 2020

Mitsubishi UFJ Lease & Finance Company Limited

Hitachi Capital Corporation

1. Background and Circumstances of the Business Integration

• The two companies have promoted collaboration, including reinforcing of the overseas infrastructure investments, since the execution of the capital and business alliance in May 2016
• Both have continued constructive discussions for integration in the spirit of mutual respect and fairness, considering potential business integration as one of the options
• The business integration through the merger is the optimal means to promptly adapt to drastic changes and further open up new areas of their advanced asset businesses

Global Mega Trends

Climate change	Breaking
dependence	Demographic	Technological		Shifting of the	Global multi-
and shortage of	Urbanization
on resources and	changes	innovation	global economy	polarization
resources
fossil fuels
Qualitative restructuring of supply	Digitalization to adapt to a data	Shifts from mass production and	Accelerated
chains	economy	consumption to a circular economy	by COVID-19

Rapid change of business models at an industry level at a speed that exceeds all expectations

Common	In addition to conventional leases and finances, resolve social issues through business investments and operations
Challenges

Agreed that it is necessary to further expand the operational bases and strengthen financial bases to meet various needs of customers

and society, and to create social value, while regarding these drastic environmental changes as new business opportunities

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2. Purposes of the Business Integration

• Under a unified vision and philosophy, the two companies developing the business as an integrated entity, it will achieve (i) to complement each other's business domains, (ii) to strengthen their management bases, and (iii) to create new value based on (i) and (ii)
• In addition to establishing a solid and stable revenue structure that will be less susceptible to the external environment, we aim to increase profitability via expanded investment activities utilizing enhanced capabilities
• Aim to build a stronger management bases which the source of competitiveness, and offer new value that goes beyond the framework of traditional leasing companies

1. Complementing Each

Other's Business Domains

• Diversify the portfolios in terms of both business domains and geographical areas
• Establish a solid and stable revenue structure
• Expand investment activities utilizing enhanced capabilities

• 1. Strengthening the Management Base
• Bring together resources and expertise of the two companies
• • Utilization and enhancement of human resources
  • Utilization of partner networks
  • Reinforcement of financial bases
  • Advancement of risk management
  • Promotion of Digitalization

• 1. Creating New Value
• Offer new value beyond the framework of traditional leasing companies
• Transform into one of the largest players in the leasing sector, and contribute to customers and communities across the world, by utilizing its expanding scale and built-up capital
• Develop into a company that can provide solutions to modern social issues

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2. Purposes of the Business Integration - Complementing Each Other's Business Domains -

• The strength of MUL is various asset businesses, such as real-estate and global assets in addition to corporate finance
• The strength of HC is sales finance and overseas local businesses, such as Hitachi Business and consumer finance
• The strength of the two companies' businesses in social infrastructure, environment & energy, and mobility place them in an ideal and mutually complementary relationship
• The new integrated company will establish an extensive and comprehensive lineup of businesses and reinforce and expand the businesses in which both companies have strength

two the of Characteristics companies		Characteristics
	areas Priority	focus Common

Mitsubishi UFJ Lease & Finance (MUL)	Hitachi Capital Corporation (HC)
Corporate Finance	Sales Finance
Strengths in Japan	Strengths in Europe
Real-estate Business	Hitachi business
(Securitization, Real-estate investment)	(Important finance partner)
Global Assets	Overseas Local Business
（Aviation, Railcar and sea container leasing）	(Consumer finance in UK etc.)

Social Infrastructure, Environment & Energy, Mobility etc.

twoofdomainsBusiness strengthscompanies'

Overseas

Environment &

Real-estate

Global Asset

Corporate

Sales Finance

Health

Energy

Overseas

Corporate

Local

Mobility

BPO

Finance

Care

Solar-

Wind-

Infrastructure

Investment

Business

Leases

Finance

Investment

Aviation

Railcar

Container

Supplier

Vendor

power

power

New

Integrated

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Company

MUL

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HC

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JII*

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4 * JII：Japan Infrastructure Initiative Company Limited

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