The CO2 generated in the production of the Corporate Report, from raw material procurement to printing, was offset by a carbon credit. Project title: Program of emissions reduction through introduction of electric vehicles in autoleasing operations Offset amount: 2t CO2

About the cover With its blue-sky background, the cover expresses Mitsubishi UFJ Lease & Finance’s We protect natural forest resources by using raw Corporate philosophy of working with customers to materials from certified managed forests. realize a prosperous society.

Date of issue August 2014 Report 2014

Scope of the report The report covers activities of Mitsubishi UFJ Lease & Finance Company Limited, and its Group companies. We use a waterless printing process that generates no harmful effluent. Period covered Fiscal 2013 (April 1, 2013 to March 31, 2014). Some data from other periods are also included.

Related publicity materials Information on our products, services, and other data is also available on our website. Please see the link below. Website http://www.lf.mufg.jp/english/ This report was printed with eco-friendly waterless Contact volatile organic compound (VOC)-free ink made with plant-based (soybean) oil that eliminates all CORPORATE COMMUNICATIONS DEPARTMENT, use of petroleum-based solvents. Mitsubishi UFJ Lease & Finance Company Limited Shin-Marunouchi Building, 5-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6525, Japan Tel: +81-3-6865-3002 This report is designed to be visually friendly to all readers regardless of Growing value today into greater value tomorrow individual differences in color vision.

Printed in Japan I Corporate Philosophy I Message from the CEO

Management Philosophy Following the introduction of quantitative easing and other government scal policies, the Japanese economy is gradually moving in the direction of recovery, with one sign We will prove worthy of the trust of being the improvement in corporate performance indicators. Nevertheless, Japan continues to face a daunting number customers, shareholders, and employees of issues, from a declining birthrate and demographic aging as we contribute to realize a more prosperous society. to insecurity in energy resources and the erosion of its industrial base. In addition, resolution of the issue of global warming, which is caused by increasing emissions of greenhouse gases, is a vital task that must be tackled at the We will work to achieve sustained improvement in corporate value global level. by offering the best solutions to customers. The Mitsubishi UFJ Lease & Finance Group works to respond to the trust placed in it by its stakeholders— We aim to play a part in the development of regions and customers, shareholders, local communities, and employees. society by pursuing environmentally considerate corporate activities Speci cally, in line with our declared management in compliance with laws and regulations. philosophy of contributing to a more prosperous society, we work to realize the sustainable development of society We will create a workplace environment that motivates each through our business activities. and every employee and in which they can take pride. An example of this is the renewable energy-related business. Renewable energy has attracted interest as an energy source that can reduce greenhouse gas emissions and lessen dependence on fossil fuels. In addition to providing nance for the construction of electricity generation facilities, we participate directly in the power generation sector. This is just one of the wide range of activities through which we promote greater use of renewable energies. Another area in which we have become active is the operation of long-term care facilities, where we aim to enhance medical and long-term care services together with our business partners to meet the needs of the aging society. From this scal year starting on April 1, 2014, we launched our new Medium-Term Management Plan, Limitless Evolution. As we work to achieve its goals, we will contribute through our business operations to realizing a more prosperous society, based on the platform of expertise and experience that we have built up over many years. Going forward, we aim to meet the trust and the Corporate Signature Phrase expectations of our stakeholders by concentrating our energies on the goal of further growth. The corporate signature phrase of Mitsubishi UFJ Lease & Finance—“Value Integrator”— expresses our commitment to continuously creating new value through lease and nance activities August 2014 that integrate the existing value in diverse portfolios of tangible and intangible assets.

Tadashi Shiraishi By creating new business, we aim to contribute to customers’ sustainable growth in corporate value. President & CEO

2 Corporate Report 2014 Corporate Report 2014 3 INDEX n Editorial Policy

Mitsubishi UFJ Lease & Finance had published CSR reports until 2013 to provide information on its business activities and CSR 2 Corporate Philosophy activities. This year, we have published the new Corporate Report 2014 as a communication tool that contains more information than CSR reports, such as business strategy and financial data. 3 Message from the CEO This report focuses on themes that include an outline of the new Medium-Term Management Plan that was launched in April 2014, highlights of our key business areas, and initiatives on human resources that are essential to our business growth. Going forward, we aim to develop the Corporate Report as a tool linking our Group with its stakeholders and to enhance Introduction understanding of the Group’s activities. 6 Relation with Stakeholders P.16 Focus 1

n Forward-Looking Statements Management Strategy / The strategies, plans, results and other materials presented in this report contain future projections and forecasts. Such forward-looking Financial Report statements reflect assessments made by the Group based on the information available at the time. Please note that actual results are influenced by a wide range of significant factors and may therefore differ considerably from the content of these statements. 8 Management Strategy New Medium-Term Management Plan

11 Financial Report Analysis of Business Results and Financial Position 12 Financial Highlights

Mitsubishi UFJ Lease & Finance Communication Tools Our Business Areas 14 Businesses of the Mitsubishi UFJ Lease & Finance Group P.18 Focus 2

l Corporate Report l Securities Report l Financial Results l Annual Report (Japanese/English) (Japanese) (Japanese/English) (English) Focus 16 1. Supporting the world’s skies—aircraft leasing business

18 2. A variety of solutions to tackle issues in society

20 3. Mitsubishi UFJ Lease & Finance: Commitment to people

22 4. Group network with strong expertise

Activity Report 24 Customers

25 Employees

26 Investor Relations P. 2 0 l Business Report l Website l Company Profile Video l Advertisements 28 Local Communities Focus 3 (Japanese) (Japanese/English) (Japanese/English) (Japanese)

Eco Report 29 Environment

Management Report

32 CSR Management (Japanese) http://www.lf.mufg.jp/ (English) http://www.lf.mufg.jp/english/

Mitsubishi UFJ Lease & Finance: Corporate Information Facing challenges together 34 Corporate Profile

P. 2 2 Focus 4

4 Corporate Report 2014 Corporate Report 2014 5 n Introduction Relation with Stakeholders Introduction Relations with Stakeholders at Mitsubishi UFJ Lease & Finance

As it works to contribute to realizing a more prosperous society, Mitsubishi UFJ Lease & Finance aims to prove itself Customers worthy of the trust of its stakeholders—customers, shareholders, local communities, and employees. Management Strategy / Financial Report

Management Vision We work to improve customer satisfaction by providing a wide range of financial services Based on the flexibility and mobility that are our inherent characteristics that create new value. as a nonbank finance company, and benefiting from our expertise in many asset categories, Mitsubishi UFJ Lease & Finance aims to serve as a reliable business partner to its customers. This means providing a Our Business Areas variety of management resources—products, funds, human resources, New Medium-Term Management Plan Shareholders information, and functions—arranged in flexible packages to meet and customer needs, and delivering advanced services on a global basis investors that help resolve customer issues. At the same time, we will work to build a business portfolio that combines stability with growth potential. Limitless Evolution

We promote dialog with shareholders and Growing as a company investors by ensuring accurate, appropriate, Focus and timely information disclosure. In this Management Management Management that wins the trust of way we work to improve management transparency and sustainably increase Philosophy Vision Strategy diverse stakeholder groups corporate value. Activity Report Local communities Code of Conduct

As a member of our local communities, Eco Report we take energetic action on environmental protection and other areas relevant to social responsibility, contributing through these initiatives to a prosperous society.

Code of Conduct Management Strategy

I Unique ways of risk-taking I Solution-oriented expertise I Growth strategy Management Report Combining financial and trading functions, We are constantly refining our expertise, • Evolve business models Employees Mitsubishi UFJ Lease & Finance has unique which provides truly value-added solutions • Accelerate international business expertise in risk-taking. to customer issues. • Create Group synergies I Proactive approach to resolving issues I Earnest approach to social responsibility • Continuously create new businesses • Promote non-organic growth strategy We have developed a precise understanding of We take committed action to earn the trust of customer issues and employ a fearless and proactive all stakeholders. I Business infrastructure reinforcement strategy approach to any challenges in resolving them. • Enhance management infrastructure We nurture human resources by supporting Corporate Information I Speedy response with a strategic grounding • Put in place a globalization-adapted operational infrastructure the career development and personal development of each employee. At the same We take energetic and speedy action based on • Intensify Group management time, we promote a workplace environment in wide-ranging strategies. • Reinforce human resources management which all employees can work with pride and • Encourage a free, open and dynamic corporate ethos strong motivation. • Strengthen and make strategic use of IT infrastructure • Earn firm trust

6 Corporate Report 2014 Corporate Report 2014 7 n Management Strategy New Medium-Term Management Plan Introduction

New Medium-Term Management Plan (FY2014–2016) Limitless Evolution Five-Point Growth Strategy and Seven-Point Business Infrastructure Reinforcement Strategy Management Strategy /

Limitless Evolution Financial Report Toward constant evolution as a company moving strongly forward Five-Point Growth Strategy

Review of Medium-Term Management Plan: Vision 2013 1 Evolve business models See P.10 3 Create Group synergies Under the Medium-Term Management Plan Vision 2013, which ran from April 1, 2011 to March 31, 2014, we put into practice a wide range We will aggressively implement four business models, pursuing We will aim to maximize top-line profit by effectively and of measures aimed at further evolution as a comprehensive finance company adapting swiftly and flexibly to the changing environment to service provision and business participation in addition to our aggressively utilizing the functions and wide-ranging sales

meet increasingly diverse customer needs. core businesses of corporate finance and asset finance. channels available through our Group companies. Our Business Areas In the international business, a key area of our growth strategy, we worked continuously to expand operations to overseas markets in a range of sectors where we have acquired wide experience in Japan’s domestic market, such as used equipment trading, asset 2 Accelerate international business See P.10 management services, and autoleasing. To expand our business base and enhance the functions we provide, we also worked to promote 4 Continuously create new businesses our global asset business, which deals in aircraft, marine vessels, containers, and other assets with high marketability and broad utility. In We will extend the competitive edge that we have built up January 2013, we acquired the entire equity interest in JSA International Holdings, L.P., whose business portfolio includes the U.S. aircraft through business operations in Japan to overseas markets, We will continuously create new businesses in growth sectors adapting ourselves flexibly to the economic and industrial in both the domestic and overseas markets, mainly in the leasing company Jackson Square Aviation, LLC. environment and the customer and market needs. services provision and business participation sectors, by We also strengthened our commitment to the eco- and energy-related business, where expanding opportunity is expected due to the combining our Group functions with the expertise of outside rising price of energy resources and growing awareness of environmental issues. Accordingly we have boosted initiatives in this sector, For the evolution of business models and acceleration of business partners. including support services for converting facilities to energy-saving operation, emission credit-related services, and business participation international business development, we will target the seven business areas listed below as key business segments. through operation of electricity generation projects in partnership with customers. As part of our business infrastructure reinforcement Eco- and Focus Domestic International Global asset Promote non-organic growth strategy energy-related strategy, which is aimed at supporting sustainable growth, we took steps to enhance our management base through more advanced risk customer base business business 5 business management, securing of stable funding sources, and initiatives to foster human resources with strong expertise. Medical and Asset-related Real estate We will promote a non-organic growth strategy that long-term services business care business contributes to expanding our customer base and enhancing New Medium-Term Management Plan: Limitless Evolution our functions in both the domestic and overseas markets. In April 2014, we launched Limitless Evolution, our new Medium-Term Management Plan covering the next three-year period. Under Limitless Evolution, the Group aims to build up a business portfolio combining stability with growth potential by deploying the strengths and functions it has acquired over time and looking beyond the limits of finance. In this process, it will benefit from the mobility and Seven-Point Business Activity Report flexibility inherent in a nonbank finance company and its in-depth knowledge of numerous asset categories. To achieve sustainable growth, Infrastructure Reinforcement Strategy we will act as a reliable business partner helping customers to meet business needs and resolve operational issues. This will mean combining our management resources—products, funds, human resources, information, and functions—in a variety of coordinated 1 Enhance management infrastructure 4 Reinforce human resources management packages. By further reinforcing Group strengths in areas such as international business, the eco- and energy-related business, the medical and long-term care business, asset management services, and the real estate-related business, we will respond to a diverse range of We will work to recruit and develop diverse human resources customer issues and needs. We aim thus to be a company that seeks, finds, and realizes solutions together with the customer by pursuing We will establish a risk management system that enables us to to match our comprehensive operations and ensure effective utilization of management resources. Moreover, we will ensure a variety of options and possibilities that go beyond the ideas of today. undertake independent and proactive risk control in a broad range of risk scenarios and business models. We will also appropriate systems for performance evaluation and The new Medium-Term Management Plan, Limitless Evolution, consists of a five-point “growth strategy” and a seven-point “business appropriate terms of employment.

further enhance our portfolio management. Eco Report infrastructure reinforcement strategy.” Two of the growth strategy points in particular—evolve business models and accelerate international business—are crucially important for the Group’s continued evolution and expansion. To step up to a new level, the Group will steadily but swiftly put these strategies and measures into action. Encourage a free, open and 5 dynamic corporate ethos One of the business targets of the Medium-Term Management Plan is to boost consolidated net income from ¥37.6 billion for the year 2 Put in place a globalization-adapted ended March 31, 2014 to over ¥45 billion for the year ending March 31, 2017. An additional target is to raise the overseas share of total operational infrastructure We will foster a free, open, and dynamic corporate ethos to consolidated operating assets from around 20% currently to 30% by further promoting overseas business. This reflects our Group aspiration maintain and improve individual motivation in a workplace with diverse values. We will also promote organizational reform toward continuous growth and evolution.

We will enhance our international business operational toward a more challenge-friendly corporate culture. Management Report infrastructure by developing and enhancing human resources, upgrading the functions of business sites, and maintaining the full support of each corporate division. Strengthen and make strategic 6 use of IT infrastructure

We will work to improve operational stability and efficiency by Limitless Evolution strengthening and making strategic use of IT systems and 3 Intensify Group management telecommunications infrastructure. Fiscal year ending March 31, 2017 Corporate Information Fiscal year ended We will work to improve operational efficiency by deepening 7 Earn firm trust March 31, 2014 Consolidated net income collaboration to create synergies and promoting Group-wide Consolidated net income (Target) strategies, as well as ensuring effective utilization of We will continue to aim for sustainable growth by further management resources. strengthening our internal control system and building strong ¥37.6 billion Over ¥45 billion bonds of trust with customers, business partners, and the market.

8 Corporate Report 2014 Corporate Report 2014 9 n n Management Strategy New Medium-Term Management Plan Financial Report Analysis of Business Results and Financial Position Introduction

Growth Strategy 1 Evolve business models Analysis of business results and financial position

Around its core of leasing and finance business, Mitsubishi UFJ Lease & Finance aims to integrate the expertise it has built up over many

years to evolve existing business models toward services and business participation in response to customer issues and needs. In this way, Management Strategy / The fiscal year ended March 31, 2014 saw signs of recovery in Japan’s domestic economy, led by the economic and fiscal policies

we will expand the range of functions we provide. Financial Report promoted by the government. However, reflecting a slackening of growth in the emerging nations that had been the driving force of the Services Business participation global economy thus far, there was an overall lack of vitality in the Company’s operating environment. To respond to this challenging situation, through its Medium-Term Management Plan, Vision 2013, which entered its final year on We provide not only lease of machines Asset management Solar power Solar power generation business April 1, 2013, Mitsubishi UFJ Lease & Finance executed the strategies and measures set out in the plan, including the expansion of and equipment, but also asset management service generation business See P.19 functions in the value chain and the acceleration of the global rollout, bringing together the capabilities and knowledge of the entire Group. services (e.g., “e-Leasing Direct Platinum”) Applying the expertise we have acquired As a result of these efforts, we set new records at all income levels in the fiscal year ended March 31, 2014, with record net income for the that achieve total cost reduction by in areas such as eco-related finance and third consecutive year. facilitating one-stop management of leasing of medical equipment and information on all customer assets. We mobility-adapted vehicles, we are now Our Business Areas have also broadened the scope of our participating in the solar power generation vehicle-related services from conventional business and the long-term care business autoleasing to solutions that promote and are rolling out a range of initiatives in improved vehicle safety and eco-friendly areas where we see business potential. features, enabling us to offer a range of Revenues and profit Cash flows customers an optimally tailored service in fleet management and elsewhere. Medical and long-term Consolidated revenues for the fiscal year ended March 31, 2014 Cash flows from operating activities resulted in a net cash outflow Auto solution Leasing care business increased by ¥19.6 billion or 2.8% year on year to ¥717.7 billion. of ¥41.7 billion, compared to a net outflow of ¥63.4 billion in the and Gross profit expanded by ¥10.6 billion or 9.0% to ¥128.6 billion, previous fiscal year. Investing activities provided net cash of finance and selling, general and administrative expenses increased by ¥8.7 billion, in contrast to a net outflow of ¥102.3 billion in the

¥5.3 billion or 9.2% to ¥63.3 billion. As a result, operating income previous fiscal year. Financing activities provided net cash of Focus grew by ¥5.2 billion or 8.8% to ¥65.2 billion and net income rose ¥77.7 billion, against a net inflow of ¥183.5 billion in the previous by ¥1.6 billion or 4.5% to ¥37.6 billion, setting a new record for fiscal year. As a result, cash and cash equivalents as of March the third consecutive year. 31, 2014 stood at ¥120.5 billion, an increase of ¥47.5 billion or 65.2% from the previous fiscal year-end.

Growth Strategy 2 Accelerate international business Activity Report

Drawing on the expertise and the networks that we have built up in the Japanese domestic market, we provide optimal services and Profit distribution: solutions to customers who are developing operations overseas. Sales performance Basic policy and annual dividend Global asset business Aircraft leasing See P.16 International business Autoleasing in Indonesia See P.22 Here, we are working together with Group companies to promote With the increasing borderlessness of economic activity, there is an By delivering a wide range of value-added products and Mitsubishi UFJ Lease & Finance works to maintain adequate business in aircraft, aircraft engines, containers, railroad freight cars, and accelerating trend among our customers toward expansion into overseas services, we responded sensitively and flexibly to diverse equity, which it deploys effectively to achieve continuous other global assets with high marketability and broad utility. markets and reinforcement of overseas operations. We are actively capital expenditure requirements in Japan and overseas. As a improvement in operational stability. Our basic policy on profit G Acquired the aircraft leasing company Jackson Square Aviation, LLC developing business in this sector, concentrating on Asian countries, Europe, result, the volume of new transactions for the fiscal year ended distribution is to provide continuous and stable dividend payouts (January 2013) and North America, and providing a range of services and solutions adapted March 31, 2014 grew by 15.2% year on year to ¥1,561.8 while taking care to maintain an adequate reserve. Based on this Eco Report G Resolved to acquire the aircraft engine leasing company Engine Lease Finance to the relevant country or region to expand the scale of our business. billion. This increase was reflected in each of our business policy, we set the dividend for the year ended March 31, 2014, at Corporation (May 2014) G Reinforced eco-related business in Thailand through a partnership with G Resolved to acquire the marine container leasing company Beacon Intermodal segments: the volume of new transactions grew by 23.5% in ¥8 per share, consisting of an interim dividend of ¥3.35 and a International Finance Corporation (December 2009) Leasing, LLC (May 2014) the leasing business to ¥718.3 billion, by 17.2% in the year-end dividend of ¥4.65. Effective April 1, 2013, the Company G Set up a project nance-type lease for a megawatt solar power project in G Entered a business alliance with the railcar leasing company Greenbrier Leasing Thailand (October 2012) installment sales business to ¥91.7 billion, by 4.1% in the loans carried out a 10-for-1 stock split. On the assumption that the Company LLC (May 2014) G Launched a joint venture for construction machinery leasing in China business to ¥701.9 billion, and by 125.8% in other businesses stock split was carried out during the previous period, the result (December 2012) to ¥49.7 billion. was a dividend increase of ¥1.5, the 15th consecutive year of G Acquired as a subsidiary Indonesian autoleasing company PT. Takari Kokoh dividend growth. Management Report Sejahtera (November 2013)

Balance of overseas operating assets and its targets

(¥ billion) Balance of overseas operating assets (%) 1,000 30 Balance of overseas operating assets 857.3 Financial position 800 Limitless Evolution Share of overseas operating assets to total consolidated operating assets 635.3 20 600 21.3% Fiscal year ending As of March 31, 2014, the total assets of Mitsubishi UFJ Lease & Corporate Information 17.1% March 31, 2017 Finance stood at ¥4,497.5 billion, an increase of ¥319.7 billion 400 Fiscal year ended 269.3 Share of overseas operating 220.4 10 March 31, 2014 over the previous fiscal year-end. Due among other factors to the 193.7 assets to total consolidated 200 Share of overseas operating 6.5% 8.1% increase in net income, total equity expanded by ¥66.1 billion 5.5% assets to total consolidated operating assets operating assets 0 0 (Target) from the previous fiscal year-end to ¥534.2 billion, driving the FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 equity ratio up by 0.7 percentage point to 11.4%. The balance of 21.3 % 30% interest-bearing debt rose by ¥169.1 billion to ¥3,484.4 billion.

10 Corporate Report 2014 Corporate Report 2014 11 n Financial Report Financial Highlights Introduction

Consolidated Financial Highlights

(Millions of yen) Years ended March 31, 2010, 2011, 2012, 2013 and 2014 Management Strategy / Operating income Years ended March 31 Net income Years ended March 31 2010 2011 2012 2013 2014 Financial Report

Business Results (¥ Billion) (¥ Billion) 70 65.2 40 37.6 (¥ Billion) (¥ Billion) 36.0 Total revenues ¥ 747,043 ¥ 724,762 ¥ 724,611 ¥ 698,155 ¥ 717,760 34.6 70 59.9 40 60 65.2 37.6 Leases 558,615 560,610 562,878 546,625 579,753 (¥ Billion) (¥ Billion) (¥ Billion) (¥ Billion) 36.0 53.1 59.9 34.6 70 60 70 65.2 65.2 40 30 40 37.6 37.6 Installment sales 122,615 99,414 92,533 85,021 83,270 50 36.0 36.0 53.1 59.9 59.9 34.6 34.6 30 Loans 39,048 36,802 35,611 35,592 35,068 60 50 60 53.1 53.1 40 Our Business Areas Others 26,764 27,935 33,587 30,914 19,667 30 20 30 50 40 50 Cost of revenues 637,474 606,033 609,533 580,121 589,086 30 20 Gross profit 109,569 118,729 115,078 118,033 128,673 40 30 40 20 20 10 20 Selling, general, and administrative expenses 83,755 62,846 61,921 58,045 63,395 30 20 30 10 Operating income 25,813 55,882 53,156 59,987 65,278 10 20 10 20 Net income 20,727 25,755 34,640 36,038 37,675 0 10 0 10 FY3/12 FY3/13 FY3/14 FY3/12 FY3/13 FY3/14 Comprehensive income — 27,781 38,060 46,018 74,253 10 0 10 0 FY3/12 FY3/13 FY3/14 FY3/12 FY3/13 FY3/14 Profitability (%) 0 0 0 0

FY3/12 FY3/12FY3/13 FY3/13FY3/14 FY3/14 FY3/12 FY3/12FY3/13 FY3/13FY3/14 FY3/14 Focus Cost of revenues to total revenues 85.3 83.6 84.1 83.1 82.1 Volume of new transactions by business Years ended March 31 (¥ Billion) Gross profit margin 14.7 16.4 15.9 16.9 17.9 2,000 Leases and installment sales Overhead ratio 40.8 39.1 41.9 42.4 44.0 (¥ Billion) Loans & others 2,000 Leases and installment sales n Year ended March 31, 2014 (¥ Billion) Return on equity 6.1 7.1 8.9 8.5 7.9 (¥ Billion) (¥ Billion) Loans & others 1,561 2,0001,500 Leases2,000 and installmentLeases and sales installment sales 1,356 1,561 Business Breakdown of transactions Return on assets 0.5 0.7 0.9 0.9 0.9 Loans & 1,276othersLoans & others IT and office equipment 155 1,500 1,356 Activity Report Sales Performance 1,561810 1,561 1,276 Industrial machinery and machine tools 134 1,5001,000 1,500 540 1,356659 1,356 Volume of new transactions ¥1,301,590 ¥1,169,542 ¥1,276,464 ¥1,356,270 ¥1,561,842 1,276 1,276 810 Civil engineering and construction machinery 69 1,000 540 659 Leases and 810 810 Transportation equipment 171 Leases 516,455 438,713 472,899 581,479 718,390 installment sales 540 540659 659 Installment sales 50,646 49,424 67,293 78,259 91,755 1,000500 1,000 Medical equipment 62 736 696 751 Commercial and service equipment 96 Loans & others 734,487 681,403 736,271 696,531 751,696 500 736 696 751 Others 120 Financial Position 500 0 500 736FY3/12 736696FY3/13 696751FY3/14 751 Factoring 203

Loans & others Eco Report Total assets ¥3,885,161 ¥3,721,136 ¥3,682,299 ¥4,177,784 ¥4,497,502 0 Loans & others 547 FY3/12 FY3/13 FY3/14 Total equity 366,891 389,802 420,864 468,061 534,250 0 0 FY3/12 FY3/12FY3/13 FY3/13FY3/14 FY3/14 Interest-bearing debt 3,148,926 2,961,470 2,893,504 3,315,294 3,484,480 Equity ratio (%) 9.1 10.0 10.9 10.7 11.4 Total equity Equity ratio (¥ Billion) Total equity / Equity ratio (%)As of March 31 Cash(¥) dividends per share* Years ended March 31 600 Total equity Equity ratio 11.5 9 Cash Flows (¥ Billion) 11.4% (%) (¥) 8.0 8 Total equity600 Total10.9% equityEquity ratio Equity ratio 11.5 9 Management Report 10.7% 534.2 11.0 Net cash provided by (used in) operating activities ¥ 52,013 ¥ 224,305 ¥ 87,941 ¥ (63,407) ¥ (41,776) (¥ Billion)500 (¥ Billion) 11.4%(%) (%) (¥) (¥) 8.0 600 600 10.9% 11.5 11.5 9 7 8 9 6.5 Net cash provided by (used in) investing activities (11,415) (5,402) (7,631) (102,372) 8,739 500 420.8 10.7% 534.2 11.0 468.0 11.4% 11.4%10.5 6.0 8.0 8.0 400 8 6 7 8 Net cash provided by (used in) financing activities (82,443) (191,694) (68,631) 183,560 77,729 10.9% 420.810.9% 6.5 500 500 10.7% 468.010.7%534.2 534.211.0 10.5 11.0 10.0 6.0 Net increase (decrease) in cash and cash equivalents (41,773) 27,047 11,582 18,766 47,585 400 7 5 6 7 300 420.8 420.8 6.5 6.5 468.0 468.0 10.5 10.0 10.5 6.0 6.0 Cash and cash equivalents, end of year 12,980 40,408 51,765 72,954 120,540 400 400 9.5 6 4 5 6 300 200 10.0 10.0 3 4 Per Share Information* (Yen) 9.5 5 5 300 300 9.0

200 4 2 3 4 Corporate Information 9.5 9.0 9.5 Basic net income ¥ 23.14 ¥ 28.76 ¥ 38.72 ¥ 40.56 ¥ 42.40 100 8.5 200 200 3 1 2 3 Cash dividends applicable to the year 4.8 5.0 6.0 6.5 8.0 100 9.0 8.5 9.0 0 8.0 2 0 1 2 FY3/12 FY3/13 FY3/14 FY3/12 FY3/13 FY3/14 Number of employees 2,219 2,245 2,275 2,402 2,511 100 100 8.5 8.5 0 8.0 1 0 1 * On April 1, 2013, Mitsubishi UFJ Lease & Finance split each share of its common stock, which were held by shareholders stated or recorded in the register of FY3/12 FY3/13 FY3/14 FY3/12 FY3/13 FY3/14 shareholders as of March 31, 2013, into ten (10) shares. Net income per share and cash dividends per share have been retrospectively adjusted to reflect the stock split 0 0 8.0 8.0 0 0 for all periods presented. FY3/12 FY3/12FY3/13 FY3/13FY3/14 FY3/14 FY3/12 FY3/12FY3/13 FY3/13FY3/14 FY3/14

12 Corporate Report 2014 Corporate Report 2014 13 n Our Business Areas Businesses of the Mitsubishi UFJ Lease & Finance Group Introduction

In addition to its core lease and financing business, the Mitsubishi UFJ Lease & Finance Group has responded to Businesses Operated by the Mitsubishi UFJ Lease & Finance Group increasingly diverse customer needs by expanding into other business domains. Among these are the eco- and energy sector and the real estate sector, operation of public-sector facilities through our PFI business, and trading in used machine tools and used medical equipment. To actively develop our businesses, we take advantage of the flexibility and mobility that are our inherent strengths as a nonbank finance company, delivering a wide range of services linked to our products and increasing our involvement in customers’ operations through business participation. Management Strategy / Financial Report

We support our customers to build optimal fleet management systems Our finance leases and operating leases offer an effective through rationalization and labor saving, method of funding capital expenditure or introducing helping to ease demand on management 9 1 outsourcing to boost administrative efficiency. Besides resources, control costs, and reduce risks. financial functions, we deliver asset management and Auto lease and Lease and other related services to provide total support to auto finance financing customers’ capital expenditure. business business Our Business Areas Private finance initiatives (PFIs) are a method of using private-sector finance and expertise to 8 provide social capital. From provision of finance through to overall project coordination, we support the construction and operation of PFI business educational facilities, government buildings, 2 We are developing services around assets infrastructure, and other public-sector facilities. with high marketability and high value in 2 Aircraft Global asset the global market, including aircraft and 7 Wind turbines business aircraft engines, marine vessels, containers, and railroad freight cars. 2 Marine vessels, containers

For customers expanding into Focus overseas markets or developing their overseas operations, we utilize our local experience and expertise International to provide optimal solutions, from business capital expenditure financing to 3 Logistics centers 8 Water purification facilities asset management and eco- and 1 5 7 energy-related services. Factories (machine tools, heat-source facilities, etc.)

9 Vehicles Our wide range of real Activity Report 7 Solar panels estate-related services 3 includes non-recourse loans for real estate and our 1 Apartment blocks (security cameras, intercoms, etc.) 1 Theme parks (play equipment, etc.) Real estate- “Symphony” real-estate lease, Our energy service company related which facilitates construction (ESCO) business supports 1 3 Cafes and restaurants business and then leasing of facilities to achieve energy savings commercial facilities, offices, and cost reductions. Other 7 logistics facilities, and others. services in our wide range of

eco-related solutions are Green Eco- and 8 Government buildings Eco Report 3 Large commercial facilities Leasing (leases linked to green energy-related energy certificates), carbon business offset-related services, and 5 6 Hospitals (medical equipment, etc.) 1 4 7 support to power generation Offices (IT equipment, light fittings, etc.) projects based on solar, wind, or other renewable energy resources.

8 Educational facilities 4 We deploy our extensive expertise Management Report O N T I to meet a diverse range of rental needs, S T A from PCs and other IT equipment Rental We provide a one-stop service for hospitals, 6 to machine tools, testing devices and 1 Railcars business clinics, and long-term care facilities in all areas, measurement equipment. from startup support to acquisition of high-tech Medical and equipment and facilities, as well as funding long-term care support during building renewal and expansion. business 1 Automatic ticket gates Corporate Information

5 Utilizing the experience and expertise Other Used equipment This area includes our insurance business, acquired through our lease business, Group business companies specializing in this sector trade trading providing sales and consultancy in business in high-quality used machine tools, medical business and personal insurance. equipment, and IT equipment.

14 Corporate Report 2014 Corporate Report 2014 15 ocus 1 Introduction F Supporting the world’s skies—aircraft leasing business Management Strategy / Financial Report Mitsubishi UFJ Lease & Finance’s Responding to the growing demand for aircraft aircraft leasing business Economic development in emerging nations, especially in Asia, and the rise of low-cost carriers Mitsubishi UFJ Lease & Finance targets the aircraft- are creating new markets, contributing to rapid worldwide growth in air passenger numbers related sector as a key business area. Since setting (see Reference 1). Major market forecasts project that global aircraft demand will double from up a dedicated organization to promote the aircraft around 20,000 airplanes in 2012 to more than 40,000 in 2032 (see Reference 2). leasing business, we have developed strengths in this However, bringing aircraft into service requires a large upfront investment, and procuring the necessary funding has become a great challenge for airline companies. Because of this,

area by concentrating expert functions and enhancing Our Business Areas specialist competencies. In 2013, we welcomed into there is a growing trend within the aviation industry to opt for leasing, which offers flexible and the Group the U.S. aircraft leasing company Jackson timely access to aircraft while reducing the initial cost burden. The number of airline companies Square Aviation, LLC (JSA), which greatly expanded using lease contracts is therefore increasing. our business scale in this sector and the functions we The Japan Airfinance Conference, a highlight event in the aviation industry, where we gave the keynote address. provide. We are energetically developing this business through a tripolar system with bases in the United States, Europe, and Japan. n Reference 1 World Air Passenger Traffic Forecast n Reference 2 Global aircraft demand to double over As of March 31, 2014, the Group’s fleet had (%) the next 20 years* grown to more than 120 aircraft. We continue to 15 14.7 implement initiatives to build a high-quality portfolio 1993–2012 Number of airplanes Focus of aircraft assets that will capture demand from the 2012 20,310 airplanes 2013–2032 worldwide expanding market. 10.5 10 Taking maximum advantage of our Group’s Decrease through 8.0 retirement, etc. expertise in products and services as well as its wide- 6.7 6.2 6.1 ranging network, we will make ongoing contributions 5.4 5.6 5.7 5.7 4.8 4.8 5.0 5.0 4.7 5,960 35,280 airplanes including 41,240 5 4.3 4.3 2032 to the further development of the aircraft-related airplanes 11,810 airplanes in Asia airplanes 3.1 3.2 3.4 sector, which forms a vital global infrastructure for 2.9

RPK* growth per year 2.2 2.1 Activity Report transportation, distribution, and commercial relations. 0.8 0 Replacement demand New demand World North Latin West East Africa Middle Oceania Japan China Asia CIS America America Europe Europe East * RPK: Revenue passenger kilometers * Estimate by The Boeing Company Source: Japan Aircraft Development Corporation, Worldwide Market Forecast 2013–2032 Eco Report

Voice of our aircraft leasing staff Kazunori Shibahashi Chief Manager, Aviation Business Department Management Report

The development of aviation infrastructure has brought great changes in not only transportation and distribution but also business models. For instance, increasingly convenient transportation is creating new tourism businesses, while improved distribution services are building transnational supply chains. Over the next 20 years, it is forecast that the number of aircraft will roughly double from the present level. The proportion operating under lease contracts is also rising every year and Corporate Information is expected to reach approximately 50% in 2020, having risen from about 3% in the 1970s to around 30% in 2013. In parallel with the development of the aircraft industry, there are great opportunities for our Group’s aircraft leasing business to make major forward strides. In the years ahead, it is my hope that by actively promoting our aircraft-related business around a core of aircraft leasing, we will play an important role in developing the global aviation infrastructure.

Inside the engine maintenance plant

16 Corporate Report 2014 Corporate Report 2014 17 ocus 2 Introduction F A variety of solutions to tackle issues in society

In our daily lives, we face a variety of serious issues. These wide-ranging Management Strategy /

problems include resource- and energy-related issues, the problem of global Eco- and energy-related business Financial Report warming caused by increasing greenhouse gas emissions, and difficulties with aging public infrastructure. Support for energy-efficient facilities realizes To help resolve these issues, we are taking practical action in unique ways energy-saving operation Energy service company (ESCO) that make the most of our expertise. Our project total to date With the price of fossil fuel-based energy rising daily, switching to 430 (As of March 2014) energy-saving operation is becoming increasingly important for office buildings, factories, hospitals, and other facilities that consume large Case study Converting the nation’s street lighting

amounts of energy. to LEDs Our Business Areas For customers who want to reduce energy consumption and The majority of Japan’s 10 million security streetlights run on old-style associated costs while maintaining levels of amenity and convenience, incandescent or fluorescent light fittings. Converting all of these to LED we deliver inclusive energy-saving packages through our ESCO operation would achieve an estimated CO2 reduction of around 430,000 business and related environmental solutions. tons. Our ESCO business is contributing to this reduction by working on the conversion to LED of security streetlights in a number of areas, n ESCO business including Niigata, Gunma, and Kanagawa This is a service that proposes comprehensive energy-saving prefectures. Other local governments also packages to office buildings, factories, hotels, hospitals, and other plan to introduce LED lighting.

facilities to help reduce the environmental impact and costs. Myoko City, Niigata Prefecture: Approximately After we assess the upgrading works required to convert 5,000 LED security streetlights installed

throughout the city area Focus the customer facilities to an energy-saving operation, we present CO2 reduction: 110.7 t/kWh a comprehensive package combining the necessary technology, (FY3/14 results) equipment and financing with energy-saving guarantees and maintenance and management services. We are also making efforts to Yugawara Town, Kanagawa Prefecture: Approximately 3,300 LED security streetlights expand the service overseas, as part of which we have joined the ESCO installed throughout town area Committee of China Energy Conservation Association (EMCA), China’s CO2 reduction: 185.0 t/kWh LED security streetlighting (Projected figure) equivalent of the Japan Association of Energy Service Companies. (Niigata Prefecture)

PFI business Activity Report

Private-sector resources help to renew the aging public Our project total to date 53 (As of March 2014) Renewable energy projects with low environmental infrastructure built during Japan’s postwar boom period impact help realize a low-carbon society Eco-related finance Educational institutions, government buildings, water purification Case study Renewal of the Kawai Water Securing a safe and reliable energy supply is an important step toward We provide a wide range of services and functions that cater to facilities, and school kitchen facilities are examples of public facilities Purification Plant realizing a low-carbon society. Since the Great East Japan Earthquake the eco-related needs of business. The projects we support, with and infrastructure that bring safety and security to our daily lives. But The Kawai Water Purification Plant in Yokohama City, Kanagawa of 2011, diversification of energy sources has been recognized in a close eye to business viability, range from upgrading of waste many of the facilities built during Japan’s strong economic growth Japan as an important task that must be tackled urgently. period from the 1950s to the 1970s have become aged and outdated. Prefecture, was an aging facility built in 1901. This plant was treatment facilities to installation of solar panels or wind power

Compared to fossil fuels such as petroleum and coal, renewable Eco Report In recent years, there has been growing interest in private finance completely renewed using a PFI structure. The new facility is fitted with facilities to generate renewable energy. As well as providing the initiatives (PFIs) as a way to utilize private-sector funds and expertise to Japan’s largest ceramic membrane filtration system. It also makes energies based on biomass or solar, hydro, and wind power reduce financial services that are one of our areas of special expertise, answer the need for social capital provision. comprehensive use of IT systems and natural energy such as solar environmental impact and have attracted growing attention as we have advanced into other new and challenging business The Japanese government, which sees great potential in using power, ensuring a reliable and continuous water supply of improved sustainable energy sources. Since the introduction of feed-in tariffs fields, such as operating electricity generation projects in business quality to local communities. We will remain actively involved in the private-sector expertise to renew social infrastructure, has identified the (FITs) for renewable power generation in 2012, related projects have partnerships with customers. widespread use of PFIs as one strand of its growth strategy. project for the next 20 years. developed rapidly. Strong growth is forecast to continue in the number Case study Mitsubishi UFJ Lease & Finance has been actively involved in this of electricity generation facilities that produce renewable energy. We Solar power generation project with

business since the pioneering days when PFIs were first introduced in are contributing to the spread of renewable energy usage by providing Mitsubishi Materials Corporation Management Report Japan. In many of the projects, we have acted as the lead company a range of services. We established an equally financed joint venture company with responsible for overall project coordination. Mitsubishi Materials Corporation to launch a solar power generation project. This initiative was designed to make effective use of land owned by the Mitsubishi Materials Group and involved electricity generation n The Cabinet Office’s action plan for dramatic reform of schemes at four locations (Ibaraki, Fukui, Fukuoka, and Miyagi PPPs/PFIs (Summary) n Share of renewable energy in total energy output prefectures). The planned electricity generation capacity of the four The action plan, outlined below, foresees a ¥12 trillion investment in public- facilities combined is 16.4 MW. private partnership (PPP)/PFI projects in key areas over the next 10 years. Renewable energy • Site area Other 2 (1) PFI projects benefiting from licenses to operate public facilities: 20% Source: Approximately 230,000 m (total of four sites) Corporate Information ¥2–3 trillion Prepared in-house with • Electricity generation capacity reference to “Strategic Energy 16.4 MW (total of four sites) (2) PFI projects incorporating profit-making facilities that generate 10% 2030 Plan of Japan” and “Energy • Start of operation (forecast) Supply and Demand in 2030” Sakuragawa City, Ibaraki Prefecture: income to recover project costs: ¥3–4 trillion by the Agency for Natural December 2013 Aerial view of Kawai Water Purification Plant Interior of the membrane 2012 Resources and Energy, and Fukui City, Fukui Prefecture: December 2013 (3) PPP projects based on private-sector proposals, e.g., effective filtration plant 80% (results) “Fiscal 2012 Electricity Miyako County, Fukuoka Prefecture: utilization of publicly owned real estate: ¥2 trillion Generation by Power Source” April 2014 90% Name of the facility: Kawai Water Purification Plant “Cerarokka” by the Federation of Electric Kurihara City, Miyagi Prefecture: (4) Other project types (introduction of performance-linking, bundling of Power Companies of Japan. Solar power generation plant Start of operation: April 2014 January 2015 (planned) multiple facilities in a single package, etc.): ¥3 trillion (Fukui Prefecture)

18 Corporate Report 2014 Corporate Report 2014 19 ocus 3 Mitsubishi UFJ Lease & Finance: Introduction Commitment to people F Measures to develop and utilize diverse human resources Management Strategy /

Promoting opportunities for female employees Responding globally Financial Report

Mitsubishi UFJ Lease & Finance has established a Policy on Promoting Female At Mitsubishi UFJ Lease & Finance, we work to develop global human Work Opportunities and developed various related systems so that female resources equipped with expertise who can communicate in languages other employees can feel confident and secure about continuing to work in a way that than Japanese. Through various training programs, we nurture the skills APU training session fits their lifestyle. We also operate a range of training programs to support the useful in international business so that we can conduct our operations on career development of female employees. the basis of mutual understanding of diverse values between employees in Japan and overseas. n Childcare leave system Our Business Areas By combining pre-maternity leave and childcare leave, employees can take n Training for national staff (NS) up to two and a half years off work, which exceeds the legal requirement. In For staff recruited directly by our overseas entities, known as “national staff” (NS), the fiscal year ended March 31, 2014, all employees using the leave system we offer a range of training programs designed to provide understanding of the returned to work as planned. We are working to raise awareness and to ensure Group’s corporate culture and its business operations and to promote cross- a workplace atmosphere that encourages use of these support systems. cultural communication. As well as promoting skill upgrades, the training is intended to cement relations with the Head Office and participants from other overseas entities, strengthening the Group overall. In November 2013, we organized a three-day intensive training program in English for 12 employees l Key support systems from our Japanese and overseas operations at Ritsumeikan Asia Pacific

Pre-maternity leave From six months before the delivery date University (APU), an institution at the cutting edge of global education. Focus

Childcare leave Until the child reaches two years of age NS manager training session l NS training programs (Head Office group training) Paternity leave Up to two days for a male employee whose wife gives birth Name of the program NS manager training (four days) NS training in Japanese (two days) APU training (four days) Up to two hours’ reduction per day for female employees Shortened working hours during pregnancy and for male and female employees with Trainees Management staff Younger staff Younger staff children under school age Promotes deeper understanding of management NS training in Japanese shares information on This program aims to upgrade skills, raise Childcare expenses policy, improves motivation, strengthens ties with daily business operations, builds human networks, motivation, and build multilevel human networks

Covering half of childcare expenses (up to ¥30,000 a month) Activity Report support system Outline staff at the Head Office and overseas entities, and strengthens operational coordination, and develops by offering opportunities to develop insight into boosts operational efficiency. human resources for localization at overseas bases. management philosophy/vision and knowledge of Nursing care leave Up to 10 days a year business through cross-cultural communication.

l Utilization of leave systems for the last three years (total number of cases) n Global human resources development system We offer a wide range of training programs to develop human resources that can function in a global context. FY3/12 FY3/13 FY3/14 Pre-maternity leave 16 27 34 l Training programs for employees based in Japan Young female career starters forum Childcare leave 37 42 62 Name of the program Outline

Shortened working hours 34 37 42 Training at the International Education Eco Report Course options and private lessons enabling individuals to improve their English ability in their areas of interest. Center (IEC) l Overview of the training system for female employees Training at a Chinese language school The goal is to reach daily-conversation level regardless of prior Chinese ability. Name of the program Outline Overseas study (Chinese language) Study in Shanghai after language school in Japan to develop human resources for China-related business. Young female career starters forum Networking with senior employees and colleagues as an opportunity to think about future career paths and the work-life balance. Posting to overseas affiliates (Hong Kong, Shanghai, Singapore, etc.) for language training and development of leadership human resources Overseas trainee program To help employees aged in their late 20s and early 30s broaden their outlook and consider their future career in light of work and their for overseas operations. Female career development program personal lives. Two programs adapted to the learner’s English level and designed to improve reading, listening, and speaking skills through continuous Business English foundation programs Female external mentor program Mentoring by external education institutions to help employees develop their abilities and career. self-study, online meetings, and group study. Management Report

Intensive female leadership program Introduces management candidates to roles and challenges of leadership and develops necessary skills. Short programs at U.S. universities Programs at designated U.S. universities to improve English-language business communication skills and acquire overseas management skills.

Voice of an employee who benefited from the childcare leave system Voice of a participant in training at APU (Ritsumeikan Asia Pacific University)

Kumiko Inotsume Chayuda Panpreecha Corporate Information Ikebukuro Branch Balancing childrearing with working life Bangkok Mitsubishi UFJ Lease Co., Ltd. Thriving on diverse personalities and values

After taking pre-maternity leave and childcare leave that added up to two consecutive years, I returned to work in April last The training at APU was very enhancing. The issues around cross-cultural understanding were really interesting because year. During my period of leave, I had access to the Company’s intranet at home, so I was able to check developments at they were directly relevant to my own experience. The discussions with other participants helped me deepen my work regularly and keep up to date. Since returning to work, I have worked shorter hours, which has enabled me to continue understanding of the Japanese character and I was also able to build relationships, so it was a very valuable experience that working while still spending quality time with my child. will benefit me in my future working life.

20 Corporate Report 2014 Corporate Report 2014 21 ocus 4 Group network with Activity Report F strong expertise Introduction

In various business areas and regions of the world, Mitsubishi UFJ Lease & Finance has built l

Japan Medical Lease Corporation Management Strategy / a Group network with strong expertise that offers customers a diverse range of solutions. l DFL Lease Company Limited Financial Report l Shinko Lease Co., Ltd. l The Casio Lease Company Limited l Hirogin Lease Co. Ltd. l Shutoken Leasing Co., Ltd. l Chukyo General Lease Co., Ltd. l MMC Diamond Finance Corporation Lease and l Mitsubishi Electric Credit Corporation l Hirogin Auto Lease Co. Ltd. financing l Mitsubishi Auto Leasing Holdings business Corporation Auto lease Global l Jackson Square Aviation, LLC and P.24 Customers l Mitsubishi Auto Leasing Corporation asset l Jackson Square Aviation Ireland Limited Our Business Areas auto finance l PT. Takari Kokoh Sejahtera business business

l Mitsubishi UFJ Lease & Finance (Hong Kong) Limited INDEX l Central Compass Co., Ltd. l Mitsubishi UFJ Lease & Finance Real l Diamond Asset Finance (China) Co. Ltd. International The Mitsubishi UFJ estate-related Company Limited l Bangkok Mitsubishi UFJ Lease business business Activity Report Lease & Finance l Miyuki Building Co., Ltd. Co., Ltd. Group 24 Customers l PT. Mitsubishi UFJ Lease & Finance Indonesia 25 Employees l Mitsubishi UFJ Lease (Singapore) Pte. Ltd. 26 Investor Relations Focus l Diamond Rental System l Mitsubishi UFJ Lease & Finance Used Rental Company Limited 28 Local Communities (U.S.A.) Inc. equipment trading business l Techno Rent Co., Ltd. l Mitsubishi UFJ Lease & Finance (Ireland) Limited business Other business Eco Report P.25 Employees l MUL Business Company Limited 29 Environment l MUL Eco-Business Co., Ltd. l CL Solution Management Co., Ltd. Activity Report l Diamond Equipment, Inc. l MUL Principal Investments Company Limited l U-Machine Inc. l MUL Insurance Company Limited l M-cast, Inc. Management Report l Global Asset Solution Company Limited 32 CSR Management

Topics Corporate Information Auto lease and auto finance business Auto lease and auto finance business 34 Corporate Profile PT. Takari Kokoh Sejahtera Mitsubishi Auto Leasing Corporation Eco Report Launch of a full-scale autoleasing business Participation at the Automobile Eco- in Indonesia Seminar and holding of an eco-vehicle In November 2013, we established the new test-drive event autoleasing company PT. Takari Kokoh In November 2013, a representative of Mitsubishi Auto Leasing Corporation made a Sejahtera in a joint venture with the major P.26 Investor Relations Indonesian vehicle rental company PT. Takari presentation on effective utilization of electric Sumber Mulia. We aim now to expand our vehicles at the Automobile Eco-Seminar Management Report autoleasing business and enhance related organized by Osaka Prefecture. In December, services in Indonesia, where strong economic the company brought together the latest electric growth is expected to continue, bringing and hybrid vehicles and hosted a test-drive increased demand in the automobile market. event and a traffic safety fair in Tokyo.

Used equipment trading business Real estate-related business U-Machine Inc. Miyuki Building Co., Ltd. Opening of a forklift yard Purchase of the Ikebukuro West Park Building In February 2014, U-Machine Inc., which Corporate Information operates a used machinery trading business, Miyuki Building Co., Ltd., provides highly opened the Iruma Forklift Center in Iruma City, convenient office buildings located close Saitama Prefecture. The facility has a warehouse to rail and subway stations mainly in the of approximately 1,000 m2, and carries out three metropolitan areas of Tokyo, Osaka, repair and maintenance of a wide range of used and Nagoya. In March 2013, it acquired the forklifts. It aims to handle and sell approximately Ikebukuro West Park Building, the 19th office 800 used vehicles a year. building in its portfolio. The company will continue to provide customers with office space P.28 Local Communities of high amenity and efficiency.

22 Corporate Report 2014 Corporate Report 2014 23 n n Activity Report Customers Activity Report Employees Introduction

1 Metal Forming and EVI Environmental Matching Event 8 “Kurumin” mark Fabricating Fair Tokyo 2013 Basic approach Basic approach Training from junior staff to upcoming n Tokyo 2014 4 n managers In today’s changing business environment, customer In partnership with Calbee, Inc., operator of the Respecting individual diversity, we work to boost Through internal business schools and other needs are becoming increasingly diverse. Mitsubishi environmental contribution platform Eco Value awareness and create environments where all programs, we implement training to suit all career Management Strategy / UFJ Lease & Finance will strive to improve customer Interchange (EVI), we run the office of the EVI employees can make the most of their abilities and levels from junior staff to upcoming managers. satisfaction through provision of a wide range of Promotion Committee. We gave a lecture at an event balance work and home life. Financial Report solutions that create new value. organized by the committee in January 2014 to n Career switch system present innovative examples of carbon offset. 2 FACTORYNETWORK This is a system that helps employees to change careers BUSINESS CONFERENCE 9 Healthcare website Wide-ranging initiatives to suit their career plan. Employees can apply once each n 11th Business Link “Shobai Hanjo” 5 Promoting customer contact year and switch to a new career path after selection. This business matching fair organized by the Mitsubishi UFJ Lease & Finance engages in a range of Mitsubishi UFJ Lease & Finance values communication Mitsubishi UFJ Financial Group took place in February initiatives to create a supportive work environment and Internal job posting system with customers and participates actively in a wide 2014 in Osaka. Among other themes, we presented promote employee career development. n Our Business Areas range of business fairs and exhibitions. our eco-related services, support services for overseas To give employees opportunities to lead their own career development, we operate an internal job business expansion, and initiatives to offset the CO2 n Work-life balance posting system. 3 Eco-Products 2013 Exhibition roundup generated by this event using emissions credits. To actively support employees’ work-life balance, 10 “Credo Meister” Award Metal Forming and we seek to boost awareness through seminars for n Fabricating Fair Tokyo 2013 1 management staff. We are also taking measures We participated in this international exhibition held in Expanding asset management that enable employees to adapt work to individual Overview of employee award Tokyo in July 2013, presenting our variety of financing services worldwide 6 circumstances, including nursing care leave and leave systems methods and eco-related services for companies for voluntary work. We give awards to employees for special investing in machinery and equipment. To support Japanese companies that are expanding 4 EVI Environmental Matching into overseas markets, Mitsubishi UFJ Lease & Finance achievements, for working on new initiatives, or for Event Tokyo 2014 FACTORYNETWORK BUSINESS 2 is upgrading its asset management services to create Topics Extending the nursing care suggesting operational improvements. Through these Focus CONFERENCE (Japan-China Manufacturing a globally adapted model. “e-Leasing Direct Platinum,” n leave system award systems, we aim to motivate our employees 11 Best Practice Award n Business Fair) our platform for asset management, enables From December 2013, nursing care leave and enhance the corporate ethos. allowance was extended from 93 days to up to This major business fair for manufacturers expanding customers to manage a variety of information on their l Overview of employee award systems into China was held in September 2013 in Shanghai assets and machinery, and accepts multilingual data one year in total. Name of award and in November in Guangzhou. We exhibited jointly input, including Japanese and English. In this way, it We also introduced a shortened working Outline/eligibility system with our Chinese subsidiary Mitsubishi UFJ Lease & meets the needs of customers who want access to hours system to replace the staggered working 5 11th Business Link Awarded for activities embodying the hours system, allowing more flexible work patterns Activity Report “Shobai Hanjo” Finance (China) Co. Ltd., presenting a range of accurate asset information from anywhere in the world. Code of Conduct corporate Code of Conduct. Seven awards solutions adapted to the Chinese market. for different circumstances and care needs. Award Credo in the fiscal year ended March 31, 2014. Meister 12 Suggestions for improvement Eligibility 10 All Mitsubishi UFJ Lease & of sales administration n SEMICON Japan 2013 Movable property insurance Finance Group employees In December 2013, we participated in Japan’s 7 n “Kurumin” mark 8 booklet Awarded to staff with outstanding sales largest semiconductor industry exhibition, presenting We have obtained the “Kurumin” mark, a Tokyo achievement or who propose solutions our variety of services related to semiconductor We have prepared a booklet that gives an accessible Labor Bureau certification for companies that are for advanced business schemes or new business openings. During the fiscal year Best Practice 6 e-Leasing Direct Platinum manufacturing equipment. overview of comprehensive movable property “childrearing-friendly.” ended March 31, 2014, a total of 128 Award insurance, which is provided for eligible lease employees received awards. 11 n Eco-Products 2013 3 properties. Offering a systematic presentation of the n Healthcare support 9 Eco Report Eligibility Employees of Mitsubishi One of Japan’s largest environmental exhibitions was policy outline, the incidents covered, and the range So that employees can maintain good health both UFJ Lease & Finance (sales held in Tokyo in December 2013, with participation of cover, it is designed to improve service by ensuring physically and mentally, we work with external departments and branches) 13 Talk sessions with CEO from numerous companies engaged in eco-related that procedures are carried out smoothly in the event medical care institutions to promote healthcare. We Awarded for suggestions leading to operations. We gave a talk on examples of carbon- of damage or accident. offer consultation centers and websites that provide improvements in administrative quality Suggestions for and productivity or customer satisfaction. 7 Movable property insurance offset utilization. services such as 24-hour access to health advice, improvement Awarded to five employees in the fiscal booklet charge-free counseling, referrals to medical institutions, of sales year ended March 31, 2014.

administration Management Report Tokyo Emissions Trading Seminar and and support for personal health management. Eligibility 12 Employees of Mitsubishi n Business Matching Fair 2013 UFJ Lease & Finance (administrative staff) In December 2013, a business matching event in the field of emissions trading was held in Tokyo. Training system We promoted our services including solutions using emissions credits and green energy certificates and n New recruit training Talk sessions with the CEO 13 gave a presentation on emissions trading. In the year following recruitment, new employees learn business practice and etiquette and acquire basic To promote two-way communication between the knowledge of our business operations. CEO and employees, we arranged a series of talk Corporate Information For their first two years, they also learn through sessions. Approximately 10 employees took part each one-to-one mentoring from a senior employee. time, speaking frankly about issues they face in their day-to-day duties and the future of the Group.

24 Corporate Report 2014 Corporate Report 2014 25 n Activity Report Investor Relations Introduction

1 Financial results briefing 4 Nagoya Stock Exchange IR Basic approach Communication with shareholders Expo 2013 Topics n Nagoya Stock Exchange IR Expo 2013 4 and investors Mitsubishi UFJ Lease & Finance is committed to fair In July 2013, the 20th Nagoya Stock Exchange IR Expo was held over two days and attracted around 7,800 and timely disclosure of information on management To facilitate understanding and appropriate evaluation individual investors. The event was a lively success, with company representatives manning booths to give and business activity through active communication. of our business operations, we promote active two- visitors introductions to their business operations and results. Visitors also received information on the Nippon Management Strategy / We aim to meet the trust placed in us by shareholders way communication with shareholders and investors Individual Savings Account (NISA), the tax exemption program for small investments, and attended special Financial Report and investors by working to provide shareholder through IR events, investor briefings, individual lecture meetings with noted speakers. return through increase in corporate value. meetings, and other opportunities. Our booth displayed panels illustrating the Group’s services and solutions, presenting our business activities 2 IR seminars for individual We use the opinions gathered through these through examples familiar from everyday life. investors organized by securities companies events as active feedback for future management and IR policy IR activity.

l Key IR activities in the fiscal year ended March 31, 2014 1. Objectives and basic approach to IR activities Our Business Areas 2. Disclosure standards Financial results Top management presents financial Interview with organizing staff of Nagoya 3. Disclosure methods briefings for analysts results, management strategy, and Stock Exchange IR Expo and institutional operational measures at year-end and 4. Forward-looking statements 4 At the Mitsubishi UFJ Lease & investors 1 intermediate financial results briefings. 5. Material confidential information Finance booth Participation in conferences, seminars, 3 Joint corporate IR seminars 6. Quiet periods Conferences and and other events organized by Kazuhito Ito for individual investors individual meetings securities companies, and visits to key organized by securities General Manager, Sales Promotion Division For further details, please visit our website. investors in Japan, the United States, companies 2 3 Nagoya Stock Exchange, Inc. n IR Policy Europe, and Asia. http://www.lf.mufg.jp/english/investors/policy/ IR events for individual We ran a booth at Nagoya Stock investors 4 Exchange IR Expo 2013. Q How has the investors’ approach changed? gather information on each other. Companies A Given the rock-bottom interest rates of recent must make sure that their IR activity responds Focus Shareholder return and an increase years, smart investment has become increasingly swiftly and proactively to the changing times and in corporate value IR tools important. As a result, I feel there is growing changes in investment trends. emphasis on the following key points: long- To meet the expectations of shareholders and We carry out timely disclosure of necessary data term holding, stable dividend payouts, and Q What are the unique points of the Nagoya investors, we work to enhance shareholder return and for investor reference through the Financial Results, shareholder incentives. Up to now individual Stock Exchange and what are the objectives provide a continuous and stable dividend payout by Business Report, and Securities Report, materials on investors have been mainly in older age groups, of the IR Expo? sustainably increasing our corporate value. financial results, the Annual Report (in English), news but recently we have seen more investors from A Although individual investors in the Chubu Activity Report The dividend per share for the fiscal year ended releases, and other materials. These data are also the younger generation. Younger investors region of Japan generally have large holdings of March 31, 2014 was set at ¥8.0. On April 1, 2013, available on our website. research the companies they invest in very financial assets, they have a reputation for taking Mitsubishi UFJ Lease & Finance split each share of thoroughly. They seem to study not just the a rather conservative approach to investment. its common stock into 10 shares. On the assumption For further details, please visit our website. share price and dividend but also business I think that the reason we have been able to keep that the split took place in the previous fiscal year, the n Investor Relations results and even growth potential before holding this event for 20 years in this region is dividend per share showed an increase of ¥1.5 recording http://www.lf.mufg.jp/english/investors/ making an investment. because our support activity is rooted in the local the 15th consecutive year of a dividend increase. community and based on the idea of acting as a Q How have trends changed in corporate bridge between companies and investors. Eco Report IR activity? Nagoya Stock Exchange IR Expo attracts l Dividend per share A Around 20 years ago, when the Nagoya Stock participation from not just commercial enterprises (¥) Exchange began providing support to corporate but also securities companies, information 9 15 consecutive IR activity, the term “IR” was not as common vendors, economics think-tanks, financial 8.0 8 years of as it is today, and corporate IR activity was planners, and other players, making it a financial a dividend a limited field aimed mainly at professional and economic event with all-around appeal that 7 increase 6.5 6.0 analysts. Since then, appropriate and impartial goes beyond investment. Our main objective 6 Management Report information disclosure has become an essential is to help individual investors make the right 4.8 5.0 5 4.6 activity for listed companies, and IR activity investment decisions by allowing companies 4.0 4.2 4 3.6 aimed at individual investors has gradually to communicate directly to them their ideas on 3 2.8 become more widespread. management policy and future vision, and to 2.2 1.8 The spread of the Internet has enabled allow securities companies, financial planners, 2 1.5 1.0 1.2 all companies to carry out a certain level of IR and other professionals to offer accurate 1 0.8 activity, but I think that it is no longer enough advice and information. As an important forum 0 to provide merely Internet data. IR activity for communication between companies and

FY3/99 FY3/00 FY3/01 FY3/02 FY3/03 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 FY3/12 FY3/13 FY3/14 Corporate Information nowadays must narrow the distance between investors, we are committed to working for On April 1, 2013, Mitsubishi UFJ Lease & Finance split each share of its common stock, which were held by shareholders stated or recorded in the register companies and investors and allow them to further service enhancement. of shareholders as of March 31, 2013, into ten (10) shares. Cash dividends per share have been retrospectively adjusted to reflect the stock split for all periods presented.

26 Corporate Report 2014 Corporate Report 2014 27 n n Activity Report Local Communities Eco Report Environment Introduction

1 Scholarship system 1 ISO certificate Basic approach Activities to support post- Basic approach Key environmental aims and targets earthquake rehabilitation (Summary) To fulfill its social responsibility as a local corporate Mitsubishi UFJ Lease & Finance views protecting citizen, Mitsubishi UFJ Lease & Finance engages In areas affected by the Great East Japan Earthquake, the global environment as an important social

Environmental Management Strategy / Division positively in a range of activities rooted in our local Mitsubishi UFJ Lease & Finance continues to carry out responsibility, and engages in wide-ranging related objective Medium- to long-term target Financial Report communities. For example, we help to raise future activities to support recovery. activities. With the aim of helping to realize a (1) Switch to low-pollution vehicles and generations, preserve the environment, and support sustainable society with low environmental impact, promote eco-friendly driving 2 Job Shadow program (2) Summarize and control green rehabilitation after the Great East Japan Earthquake. n Donation of computers we engage positively in environmental protection procurement (paper, stationery)

Through the Japan Leasing Association, we donated activities, while working to raise the environmental activities (3) Save on photocopying, paper, and

Office-based Office-based electricity a total of 158 PCs after lease-up to educational awareness of all employees. (4) Reduce energy consumption Helping to raise future generations institutions and other organizations in the area affected Promote reduced energy consumption in line

through education by the earthquake. Sales with the revised Energy Conservation Law. (1) Strict enforcement of day-to-day

Eco policy management, improvement and review in Our Business Areas 3 TOMODACHI initiative Mitsubishi UFJ Lease & Finance aims to make social n IPPO IPPO NIPPON Project response to operational performance, etc. contributions through education to support the Through the IPPO IPPO NIPPON Project in which 1. We meet economic targets through our leasing saving and energy Resource (2) Efficient use of water resources development of children and young people for the future. we take part, we co-sponsored an advance event business, and promote environmental protection in (1) Appropriate operations in line with the Waste Management and Public in November 2013 at Natori City, Miyagi Prefecture, all our business activities. Cleansing Law n Overseas scholarship program 1 ahead of the Industry and Education Recovery 2. We work to continuously improve systems by setting (2) Strict application of the waste treatment We have set up a scholarship system for students Fair. The fair gives an opportunity to students from environmental aims and targets, management operator evaluation checklist and procedural manual, building of good learning the Japanese language or studying Japanese high schools in the earthquake zone specializing in review, and other measures. relationships with best-practice waste 4 Forest and forestry culture outside Japan. In the fiscal year ended March commerce, agriculture, and fishery to display the 3. We strive to prevent pollution through the following treatment operators to establish a system regeneration project of appropriate checks and balances 31, 2014, in addition to continuing the scholarships results of their practical studies. measures. (3) Appropriate operations in line with the Home Appliance Recycling Law, for a second year in China (at Fudan University (1) We promote resource saving, energy saving, Compliance Fluorocarbons Collection and 5 Focus and Shanghai International Studies University) and n Internship program to support rehabilitation waste reduction, and other objectives to improve Destruction Law, Construction Material

Thailand (at Chulalongkorn University and Thammasat Through an internship program aimed at supporting efficiency and reduce costs. Lease-up asset handling Recycling Law, PCB Special Measures Law, and other laws and regulations University), we expanded the program to Indonesian human resources development in the earthquake (2) We emphasize waste volume reduction, (4) Appropriate management and operation institutions (University of Indonesia and Darma zone, we hosted staff from enterprises that run retail resource recycling, and reuse when handling of assets that are difficult to dispose of, and prevention of pollution 5 Internship program to support Persada University). businesses in Onagawa Town, Miyagi Prefecture. lease-up assets. rehabilitation (1) Research and implement effective During the four-day program, they studied human 4. We comply with relevant laws and regulations and methods of asset sale to reduce waste Job Shadow program 2 resources management and market analysis for the volume n other requirements.

In July 2013, with Junior Achievement Japan, we co- retail industry. (2) Promote a recycling and reuse system Activity Report through effective manual disassembly hosted the Job Shadow program, which gives high- (1) Contribute to reducing environmental school students experience of working life. Students Environmental Management impact through eco-related businesses from municipal high schools in Tokyo shadowed our (2) Develop abilities and skills for selecting Child sponsorship program of World System organization reduction Waste assets with a high resale value and high (promotion of reuse) (promotion employees at work to learn about the challenges, the 6 Sales rate of successful re-leasing to secure 6 Logo of World Vision Vision Foundation of Thailand secondary profit and promote reduction Foundation of Thailand fulfillment, and the meaning of work. We are promoting our eco-activities under a of waste volume Our Thai local subsidiary, Bangkok Mitsubishi UFJ management system led by the President & CEO. n The TOMODACHI Initiative 3 Lease Co., Ltd., supports the education and daily life l Environmental Management System organization chart Since 2012, we have joined with companies of the of disadvantaged children from poor backgrounds. Mitsubishi UFJ Financial Group to take part in U.S.- Eco Report l Other social contribution activities ISO 14001 certification 1 Japan exchange programs led by the U.S. government President & This event is run jointly by organizations 7 Mitsubishi Asia Children’s and the U.S.-Japan Council. As part of this, we have Entries: CEO Mitsubishi UFJ Lease & Finance acquired certification including the Mitsubishi Public Affairs Enikki Festa June 2012 Committee, of which we are a member, been supporting a cultural exchange program bringing to January in 2001 under ISO 14001, the international standard Mitsubishi Asian and the National Federation of 2013 together Japanese students affected by the Great East Children’s Enikki for environmental management systems. UNESCO Associations in Japan. The Chief Environmental Festa number of entries since 1990 totals Japan Earthquake and U.S. students from California. Award Officer In 2013, we successfully completed our ninth 7 635,511. In 2013, children from Asian ceremony: In the fiscal year ended March 31, 2014, the program’s countries who were selected as Grand surveillance and recertification audit.

August Management Report Prix winners were invited to Japan for second year, U.S. high-school students were invited 2013 the award ceremony. Internal Audit Environment to Japan, where they interacted with Japanese 45th Japan Inter- Department Committee l Business sites certified under ISO 14001: The CO2 generated by the ekiden, a University Ekiden November 8 Japan Inter-University Ekiden high-school students through activities including marathon relay race, was offset by a Mitsubishi UFJ Lease & Finance Company Limited Championship 2013 Championship carbon credit. volunteering in the earthquake zone. 8 EMS* Office Head Office, MUL Business Company Limited Head We co-sponsored this illumination Office, MUL Eco-Business Co., Ltd., Tokyo Office Tokyo December festival in the Marunouchi district Michiterasu 2013 2013 of Tokyo. Forest and forestry regeneration project 4 Lease-up Corporate Information Office-based Sales asset handling divisions divisions With the aim of utilizing natural resources effectively Volunteering activity 9 divisions 9 Volunteering activity and preserving biodiversity, we operate a public-private * EMS = Environmental Management System partnership (PPP) project to manage forest resources In the locations where it operates, Mitsubishi No.E224-ISO14001 in Gifu Prefecture and other areas. In 2013, we raised UFJ Lease & Finance carries out a wide range of the efficiency of our eco-friendly forestry operations by volunteering activities, such as forest preservation, introducing a 3D tower yarder, a piece of machinery local area clean-ups, and collection of recyclable used in lumbering operations. plastic bottle caps.

28 Corporate Report 2014 Corporate Report 2014 29 n Eco Report Environment Introduction

2 Eco-Policy Card 3 Switch to low-pollution vehicles Environmental data environmental activities. In addition, we run a program Biodiversity Guidelines Measures against soil contamination of education about ISO 14001 and also have a special education and qualification program for employees Mitsubishi UFJ Lease & Finance has consistently To prevent health damage from soil contamination, No. Statistical Unit Baseline FY3/14 item value results FY3/15 target involved in operations closely linked to the environment worked to reduce global environment impact through we take the appropriate measures under the Soil Management Strategy / % reduction (lease-up asset disposal, and handling of assets under its business activities, for instance by promoting Contamination Countermeasures Act in the case of 2 10 Total energy Per m Financial Report 1 107.0 80.4 from baseline value the Construction Material Recycling Law and the Soil the 3Rs (reduce, reuse, recycle) in lease-up assets land purchase or land-based investment. input* (kW-h) (FY3/09– FY3/11 average) Contamination Countermeasures Act). and operating a used equipment sales business. To In relevant transactions in the fiscal year ended 2 Environmental Bulletin expand these initiatives from our business activities to March 31, 2014, we confirmed in advance that the risk Photocopy Per 10% reduction 2 paper person 1,849 1,078 from baseline value office-based activities and to further enhance activities of soil pollution was low. consumption (sheets) (FY3/09– FY3/11 average) Environmental accidents and legal for the preservation of biodiversity, we have established a set of Biodiversity Guidelines. Per 3% reduction infringements Paper person from baseline value The guidelines set out clear targets for initiatives 3 consumption 10,382 9,414 Promotion of purchase of VAs and (sheets) (FY3/09– FY3/11 average) In the fiscal year ended March 31, 2014, there were no through our business activities and office-based

of eco-friendly assets Our Business Areas General No higher than environmental accidents or legal infringements. activities, which we aim to steadily implement. waste Per the baseline value emissions person We will continue working to prevent environmental In our operations, based on these guidelines, We aim to reduce waste volume and lessen 4 114 121 (average FY3/10– (Shinkawa (kg) FY3/11) Office) accidents and ensure legal compliance. we actively promote use of paper with certification environmental impact by actively promoting the Water No higher than from the Forest Stewardship Council (FSC), which acquisition of eco-friendly energy-saving assets and resources Per the baseline value 5 input person 9.04 11.80 n Table of key Japanese environmental legislation supports preservation of the forest ecosystem, value assets (VAs), which are assets resistant to (average FY3/10– (Shinkawa (m2) FY3/11) Office) reduced use of photocopies, paper, and electricity, depreciation of value and capable of long-term use. Environmental Applicable Key points CO2 area law green procurement, and eco-friendly driving, as part of emissions 10% reduction Per m3 from baseline value Waste 6 from 43.15 42.74 Transport and disposal of industrial waste a series of measures to use resources efficiently and (kg-CO2) (FY3/09– FY3/11 Management electricity 1 Waste may be commissioned only to a licensed average) Law (Article consumption operator. reduce waste emissions. 12-3) Waste management No higher than Waste CO2 Per

the baseline value Management Management of manifest (obligatory l 3Rs (reduce, reuse, recycle) Focus 7 emissions vehicle 2,414.75 1,911.26 2 Waste To reduce waste, we apply the 3Rs stringently to (average FY3/10– Law (Article 13-3 reporting, retention, and management) from gasoline (kg-CO2) FY3/11) and Article 19-5) lease-up assets, while assets that cannot be reused Fuel economy Waste are disposed of appropriately in strict compliance Company improvement to 3 Waste Management Prohibits illegal disposal of waste. Waste reduction by extending asset life through Law (Article 16) Reduce 8 vehicle fuel km/ℓ 11.7 14.1 baseline value re-leasing and resale with the Waste Management Law and other relevant consumption (FY3/10– FY3/11 Construction works above a designated average) Commissioning scale (newbuild, extension, demolition, etc.): laws and regulations. Assets that use PCBs are also of construction (1) Notification to the local governor Share Construction disposed of appropriately in accordance with the PCB Promotion of green works, (2) Bearing of costs involved in sorting 9 of green % – 87.5 4 Material procurement handling of and recycling of waste materials procurement Recycling Law Special Measures Law. construction (3) Promotion of resource efficiency

waste through use of recycled construction Activity Report * Total energy input in No. 1 is total electricity consumption. We operate a stringent selection process for materials, etc. Reuse Re-leasing, used equipment trading, etc. In other items, apart from Nos. 4 and 5, figures include Group companies external waste disposal operators, with checks on co-certified under ISO 14001 (MUL Eco-Business Co., Ltd., MUL Business Designated home appliances: Company Limited). (1) Reduction of waste generation their financial position, facilities, recycling rate, legal Home Appliance through long-term use 5 Waste Recycling Law (2) In the event of disposal, appropriate compliance, and other items. After selection, we handling in line with the Home Appliance Recycling Law conduct periodical site inspections to check the state Environmental accounting Industrial and commercial air of their operations. conditioners, freezers, and refrigerators, Recycle Recycling into raw materials vehicle air conditioners, and other items (Millions of yen) containing fluorocarbons: Fluorocarbons (1) Appropriate and reliable measures for 6 Waste Collection and Environmental protection costs collection and destruction Destruction Law (2) Reduction of fluorocarbon emissions Principles for Financial Action

Category Content of key initiatives FY3/14 (collection order required in some Eco Report cases where items are transferred for Costs within Pollution prevention (eco-vehicle towards a Sustainable Society 84 disposal or recycling) business area leasing fees) Land ownership or land-based Introduction of low-pollution Soil investment requires inspection under the Mitsubishi UFJ Lease & Finance is a signatory to the Upstream and Contamination 7 Soil Soil Contamination Countermeasures vehicles and promotion of eco- downstream Disposal costs of lease-up assets 219 Countermeasures Act and confirmation that the land is not Principles for Financial Action towards a Sustainable Act 3 costs within a potential designated area. friendly driving ISO Office costs, maintenance and Society (Principles for Financial Action for the 21st Management Companies must check that recycling operation costs, Corporate Report costs, 5 Vehicle Recycling and disposal of end-of-life vehicles are Mitsubishi UFJ Lease & Finance actively promotes the Century), a document formulated by the Japan Drafting activity costs 8 Waste environmental education costs, etc. Law carried out appropriately and legally by a licensed operator. introduction of low-emission vehicles, hybrid vehicles, Committee for Environmental Finance Principles, which Management Report PCB waste must be treated appropriately (Millions of yen) Polychlorinated and other company vehicles with low environmental is supported by the Ministry of the Environment. and transfer or assignment is prohibited. Biphenyl 9 Waste Appropriate handling, including notification impact that promotes eco-friendly driving to improve Economic benefit from environmental protection (PCB) Special of storage, disposal deadlines, and Measures Law merger or division, is carried out. fuel economy. Content of key initiatives FY3/14 A plan for the reduction of NOx/PM Revenue from sale of used components Automobile NOx/ emissions from business activities must 42 10 Atmosphere (MUL Eco-Business Co., Ltd.) PM Law be submitted to the local governor Introduction of low-pollution vehicles* together with a report on plan progress. (FY3/14 achivement) Tenants are required to cooperate in n Tokyo measures against atmospheric warming Metropolitan Of our 168 company vehicles, are low-pollution Energy taken by office building owners. It is 167 11 Environmental 2 consumption required to formulate, present, and Environmental education Ordinance vehicles. implement a plan for measures against Corporate Information (Article 7) warming. Breakdown Low-emission vehicles: 86 Mitsubishi UFJ Lease & Finance issues all employees Tokyo Companies must notify the Tokyo Metropolitan Hybrid vehicles: 78 Energy governor if energy consumption in the with an Eco-Policy Card, which details our 12 Environmental consumption previous fiscal year exceeds a certain Ordinance Electric vehicles: 3 environmental policy, to carry at all times as a way level. (Article 8) * Vehicles that meet or exceed the standard of a 75% emissions reduction to raise environmental awareness. On Green Day, Each year, business sites must submit a from the 2005 baseline value (4 stars) Chiyoda plan for environmental education, local which is held every three months, an Environmental Energy Ordinance to community contribution, environmental 13 consumption Combat Global activities, and other activities in response to Bulletin is sent out to employees containing a variety Warming global warming together with a report on of eco-related information to encourage practical the progress of the previous year’s plan.

30 Corporate Report 2014 Corporate Report 2014 31 n Management Report CSR Management Introduction

1 ‌Compliance Manual 2 ‌Internal Controls Handbook Corporate governance Improving compliance awareness Action on the internal control DBJ BCM* rating acquired 3 system 2 Mitsubishi UFJ Lease & Finance recognizes the At Mitsubishi UFJ Lease & Finance, each corporate In the fiscal year ended March 31, 2014, for the importance of corporate governance and is working department or branch appoints a Compliance Mitsubishi UFJ Lease & Finance works to enhance second consecutive year, Mitsubishi UFJ Lease & actively to strengthen this area. Promotion Officer, who attends the Compliance and ensure the appropriate operation of its internal Finance obtained the highest rating under the BCM Management Strategy / We have a team of 15 directors, of whom five are Promotion Officer Training held each year. Promotion control system. In addition to appropriate execution of Rating system of the Development Bank of Japan Financial Report outside directors. In addition to its regular meetings, officers play the key role in keeping corporate operations related to financial reporting (preparation (DBJ). The rating recognizes companies that take the Board of Directors holds ad hoc meetings when departments and branches fully informed of issues and submission of the Securities Report), we review outstanding initiatives in the area of disaster prevention necessary to promote flexible decision-making. We around compliance with the Money Lending Business and expand the range of operations covered by the and business continuity. also operate an executive officer system, which Act, the Financial Instruments and Exchange Act, and system’s evaluations, bringing within its scope new * BCM: Business Continuity Management separates management decision-making and oversight other relevant laws and regulations, while ensuring that businesses and Group companies in Japan and functions from business execution functions. compliance is implemented company-wide. overseas every year. Action on information security

Of the seven corporate auditors, four are outside To boost the awareness of individual employees, The relevant corporate departments and branches 3 ‌DBJ BCM Rating certificate Our Business Areas corporate auditors. The corporate auditors work we carry out regular training for each staff grade and and Group companies report on the implementation As part of reinforcement of its information security closely with the accounting auditor, internal audit e-learning-based self-checks. In the case of certain status of internal control to the Accounting Department. management system, Mitsubishi UFJ Lease & Finance departments, and other entities to ensure management operations, the Legal & Compliance Department visits Following an audit by the Internal Audit Department, this sets out information security management rules and transparency and soundness. individual corporate departments and branches directly department presents an internal control implementation manuals. Procedures include rules for the use, to check the status of business operations and takes plan and report evaluating the effectiveness of internal management, and disposal of information. l Organization of corporate governance other steps to implement and strengthen compliance control to the Disclosure Committee on a quarterly In the area of personal information protection, on the ground. basis. These documents are also presented to the we have established a personal information protection General Shareholders’ Meeting accounting auditor. policy, a set of personal information protection rules,

Election/ Election/Dismissal Election/ 1 Additionally, employees receive a copy of the Internal and a personal information protection manual for Dismissal Dismissal Group management Reports Controls Handbook to ensure full compliance with the employee education. These help to ensure that data are

Board of Audit We make stringent efforts to enforce Group standards of behavior of the internal control system. handled appropriately in line with relevant legislation. Focus Directors Audits Committee Reports Accounting 15 Directors 7 Auditors management. A copy of the Compliance Manual is We also regularly carry out information security of whom 5 are of whom 4 are Auditor outside directors outside auditors Consent to provided to all Group employees to familiarize them audits, checks on employee awareness, and other Election/ Risk management system Election/Dismissal/ Reelection Supervision Determination of with our shared basic values and ethical approach, as measures as part of a continuous program of in-house Appropriateness of Accounting set out in the Mitsubishi UFJ Lease & Finance Group To minimize the impact on operations caused by education to ensure implementation. Reports Audit Audits Audits Reports Code of Ethics and Code of Behavior. We also jointly natural or manmade disasters, accidents, and similar l Structure of information security management system Representative hold regular study meetings and seminars with Group events, we have prepared a set of risk management Director Reports Activity Report Internal companies to improve Group-wide management. rules as well as contingency plans and response Committees Risk Management manuals. Following the experience of the Great East Chief Information Security Officer Deliberation Committee on Important (officer in charge of the Corporate Risk Management Department) Instruction Inquiries Environment n Code of Ethics Japan Earthquake, we have also set up a practical Matters Committee and Management Supervision System Committee 1. Establishing Trust Business Continuity Plan (BCP), and we periodically Committee ALM Committee Control of Reports Compliance 2. Taking a Customer-First Approach Internal Execution of Committee carry out related drills to boost the effectiveness of the Assistant Chief Information Security Officer Audit Business Disclosure (General Manager, Corporate Risk Management Department) Department Committee 3. Strict Compliance with Laws and Regulations risk management system. Approval 4. Respect for Human Rights and the Environment Planning of Plans, Audits Deliberation and Reports, etc. Policy 5. Confront Anti-social Forces Information Security Management Officer Reporting on Instructions, n Risk Management Policy Important Matters (General Manager, Operations Department) etc. • We fulfill our responsibilities as a corporate citizen. Divisions, Departments and Group Companies • We act under full compliance. Relevant departments Eco Report • We work to maintain ongoing communication with Corporate & Strategic Planning Basic policy on antisocial Department, Affiliated Company customers, shareholders, and employees. Information Security Audit Department, Information Systems organizations (Internal Audit Department) Department, Legal & Compliance Department, General Affairs Compliance system l Risk category and response system Department, Human Resources The Mitsubishi UFJ Lease & Finance Group has Department, etc. To strengthen its compliance system, Mitsubishi UFJ established a Basic Policy against Antisocial Category Status Response Lease & Finance holds a meeting of the Compliance Organizations, which is observed strictly by all Potential of a risk event Action by the Alert developing if a response is supervisory Management Report Committee every three months to inspect, audit, and corporate officers and employees. In addition, our delayed or inappropriate department/branch Information Information Information Security Manager Security Manager Security Manager Risk Management check compliance status. An officer with company- contract documents contain clauses that specifically General manager General manager General manager and Response Office Increased risk of serious of department/ of department/ of department/ wide coordinating responsibility is appointed in the exclude criminal groups. (General manager: Risk event operational delay / interruption office/branch office/branch office/branch Officer in charge of form of the Chief Compliance Officer, a role filled by the or critical loss of trust supervisory corporate executive officer in charge of the Legal & Compliance n Basic Policy against Antisocial Organizations department/branch) Information Information Information Department, which provides compliance-related 1. We take action concerted company-wide. A risk event with a critical impact Risk Management security assistants security assistants security assistants on management and operations and Response Office 2. We work together with specialist external organizations. Emergency support, instruction, and training to the other corporate that requires decision-making by (normally headed by departments and branches. The implementation of 3. We refuse all contacts including any business dealings. the President the President)

4. Where necessary, we respond to such organizations For further details, please visit our website: Corporate Information these activities is verified regularly by the Internal Audit l Flowchart of risk response n Department to increase the practical effectiveness of on a legal basis through the civil and criminal law. Code of Ethics 5. We prohibit backroom dealings and provision the compliance system. http://www.lf.mufg.jp/english/corporate/idea/ of funding. As an additional measure, we formulate a n Compliance Risk Map to identify latent risk, which Privacy Policy allows us to take swift action if an issue emerges. branch http://www.lf.mufg.jp/english/policy/ Assessment of Response Office the risk category Setup of the Risk Management and the Corporate Risk Officer in charge of Officer risk management and Supervisory department Issue in the department/ Management Department

32 Corporate Report 2014 Corporate Report 2014 33 n Corporate Information Corporate Profile Introduction

n Board of Directors, Corporate Auditors and Executive Officers (As of June 27, 2014) n Corporate History n Corporate Profile(As of March 31, 2014) n Company Name Mitsubishi UFJ Lease & Finance Company Limited Chairman Ryuichi Murata Managing Executive Officers Naoki Sato April 1971 Establishment of company President & CEO Tadashi Shiraishi* Tetsuo Kasuya n Head Office Managing Directors Kazuo Seki* Akira Hane Management Strategy / Shin-Marunouchi Building, 5-1, Marunouchi 1-chome, Chiyoda-ku, April 2007 Diamond Lease Company Limited and UFJ Central Leasing Co., Ltd. merged to form

Koichi Sakamoto* Yuzuru Suzuki Financial Report Tokyo 100-6525, Japan Mitsubishi UFJ Lease & Finance Company Limited Nobuyoshi Ishii* Hiroto Yamashita n Date of Establishment Listed on the First Section of the Nagoya Stock Exchange Yasuyuki Sakata* Yoshiaki Yamamoto April 12, 1971 Kiyoshi Tada* Takeo Kudo May 2007 Relocated the Head Office

n Paid-in Capital Tatsuhisa Takahashi* Takatoshi Haruna Address: Shin-Marunouchi Building, 5-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6525, Japan ¥33,196,047,500 Hideki Kobayakawa* Executive Officers Shinichi Hongo October 2007 Mitsubishi Auto Leasing Corporation merged with Diamond Auto Lease Co., Ltd. n Number of Employees Tsuyoshi Nonoguchi* Naohito Suzuki Directors Consolidated: 2,511, Parent: 1,247 Teruyuki Minoura Masaki Komoro February 2009 Mitsubishi Auto Leasing Corporation merged with Central Auto Leasing Co., Ltd.

n Business Activities Eiichi Tanabe Kazuhide Yamauchi Company Name: Mitsubishi Auto Leasing Corporation Our Business Areas Leasing of assets, installment sales of assets, financing activities, Tadashi Kuroda Hiroshi Mii July 2009 Acquired major share of Miyuki Building Co., Ltd. international business/other activities Hajime Inomata Kazuo Shibayama Toshio Haigou Haruhiko Honda n Stock Information January 2013 Acquired entire equity interest in JSA International Holdings, L.P., Corporate Auditors Kaoru Matsumoto Naoki Matsumuro Number of Authorized Shares: 3,200,000,000 which owns aircraft leasing companies such as Jackson Square Aviation, LLC Number of Issued Shares: 895,834,160 Kunihiko Sato Shuji Miake November 2013 Acquired major share of PT. Takari Kokoh Sejahtera Number of Shares per Unit: 100 Keiji Funahashi Hiroshi Nishikita Shota Yasuda Masaki Mizutani n Stock Listing Shoji Tokumitsu Osamu Muramoto First Section of the Tokyo Stock Exchange (TSE) Shinichiro Hayakawa First Section of the Nagoya Stock Exchange (NSE) Security code: 8593 Shigeru Tsuburaya Focus n Fiscal Year Notes: April 1 to March 31 1. * indicates concurrent posts of director and executive officer. 2. Of the directors, Teruyuki Minoura, Eiichi Tanabe, Tadashi Kuroda, Hajime Inomata and Toshio Haigou are outside n Principal Shareholders directors as defined in Article 2, Item 15 of the Corporation Act. 3. Of the corporate auditors, Shota Yasuda, Shoji Tokumitsu, Shinichiro Hayakawa and Shigeru Tsuburaya are outside Mitsubishi Corporation; Mitsubishi UFJ Financial Group, Inc.; The auditors as defined in Article 2, Item 16 of the Corporation Act. Bank of Tokyo-Mitsubishi UFJ, Ltd.; Meiji Yasuda Life Insurance Company; Mitsubishi UFJ Trust and Banking Corporation Activity Report

n Offices and Branches

l Head Office l Sapporo Branch l Shinjuku Business Department l Hamamatsu Branch l Shikoku Branch United l Nagoya Head Office l Tohoku Branch l Ikebukuro Branch l Kariya Business Department l Kyushu Branch States l Shinkawa Office l Omiya Branch l Yokohama Branch l Kyoto Branch l Minami Kyushu Business Office 4 business bases l Kanda Office l Ueno Branch l Hokuriku Branch l Kobe Branch Europe

l Osaka Office l Gotanda Branch l Shizuoka Business Office l Okayama Branch 2 business Eco Report bases n Group Network (Japan) Asia l Lease and financing business l Auto lease and auto finance business 8 business Japan Medical Lease Corporation MMC Diamond Finance Corporation Offices and bases DFL Lease Company Limited Hirogin Auto Lease Co. Ltd. branches: business bases Shinko Lease Co., Ltd. Mitsubishi Auto Leasing Holdings Corporation 23 Management Report The Casio Lease Company Limited Mitsubishi Auto Leasing Corporation Group network: Hirogin Lease Co. Ltd. 26 companies Shutoken Leasing Co., Ltd. l Used equipment trading business Chukyo General Lease Co., Ltd. MUL Eco-Business Co., Ltd. Mitsubishi Electric Credit Corporation Diamond Equipment, Inc. U-Machine Inc. Nagoya Head Office Head Office n Group Network (Overseas) l Rental business M-cast, Inc.

Diamond Rental System Company Limited Global Asset Solution Company Limited (Asia) l Mitsubishi UFJ Lease & Finance (Hong Kong) Limited (United States) l Mitsubishi UFJ Lease & Finance (U.S.A.) Inc. (Head Office) Corporate Information Techno Rent Co., Ltd. l Mitsubishi UFJ Lease & Finance (China) Co. Ltd. l Mitsubishi UFJ Lease & Finance (U.S.A.) Inc. (Los Angeles Branch) l Other business l Bangkok Mitsubishi UFJ Lease Co., Ltd. l Jackson Square Aviation, LLC l Real estate-related business MUL Business Company Limited l U-MACHINE (THAILAND) CO., LTD. l New York Representative Office Central Compass Co., Ltd. CL Solution Management Co., Ltd. l PT. Mitsubishi UFJ Lease & Finance Indonesia (Europe) l Mitsubishi UFJ Lease & Finance (Ireland) Limited Diamond Asset Finance Company Limited MUL Principal Investments Company Limited l PT. Takari Kokoh Sejahtera l Jackson Square Aviation Ireland Limited Miyuki Building Co., Ltd. MUL Insurance Company Limited l Mitsubishi UFJ Lease (Singapore) Pte. Ltd. l Ho Chi Minh City Representative Office

34 Corporate Report 2014 Corporate Report 2014 35