1Copyright © 2020 ORIX Corporation All rights reserved.
Company Name
※ テンプレートデザインの個別編集禁止
(TSE: 8591; NYSE: IX)
ORIX Corporation Consolidated Financial Results
For the Consolidated Fiscal Year Ended March 31, 2020
May 22, 2020
Member of the Board of Directors Representative Executive OfficerPresident & CEO
Makoto Inoue
Copyright © 2020 ORIX Corporation All rights reserved.
260.2 273.2313.1 323.7 302.7
11.7% 11.3%12.1% 11.6%
10.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
16.3 17.3 18.3 19.3 20.3
Net Income ROE
Overview(1)Net Income / ROE
2
(JPY Bn)
✓ 302.7 JPY Bn in net income, down by 6.5% YoY. ROE at 10.3%
✓ 417.7 JPY Bn in segment profits, up by 4.1% YoY
Net Income* and ROE
*Net Income refers to Net Income Attributable to ORIX Corporation Shareholders
Copyright © 2020 ORIX Corporation All rights reserved.
Overview(2) Breakdown of Segment Profits
*Major investment gains: gains on sales of rental property, gains on sales of subsidiaries and affiliates, gains on sales of investment securities, etc.
3
Segment Profits
FY 20.3Segment Profits
417.7 JPY Bnup by 4.1% YoY(+16.3 JPY Bn)
Base Profits277.9 JPY Bn down by 5.5% (-16.2 JPY Bn)Positive contribution from new investments (NXT Capital, Avolon).Corporate financial service’s profits decreased YoY.
Investment Gains* 139.8 JPY Bn up by 30.3% (+32.5 JPY Bn)Sold ORIX Living and completed selling all the shares of Houlihan Lokey.
(JPY Bn)
Trends of past five years
・Investment gains: About 130 JPY Bn in average
・Base profits: Growing steadily251.3 257.5 285.9 294.1 277.9
128.8163.4 143.2 107.3 139.8
380.1420.9 429.1
401.4 417.7
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0
16.3 17.3 18.3 19.3 20.3
Base profits Investment gains
Copyright © 2020 ORIX Corporation All rights reserved.
125.4156.4
84.2
80.4
38.2
55.7
89.2
76.938.8
33.725.514.6
19.3 20.3
Overview(3) Segments Highlight
4
417.7401.4
Segment Profits(JPY Bn)
Segment Assets ROA(%)
YoY YTD YTD(%)
14.6 948.3 1.1•Profits decreased mainly due to a reduction in agency fee income from life
insurance brokerage for corporate customers
-10.9 -11.5 -0.7 •Focused selection resulting in gradual reduction of financial assets
33.7 889.6 2.6 •Assets gradually increased
-5.1 15.8 -0.5•Revenues increased but SG&A increased due to improved customer service
which hurt profits
76.9 749.7 7.2 •Sold ORIX Living and AM business performed well
-12.4 29.5 -0.9 •Assets decreased due to some selling while new investments continue
55.7 847.1 4.8 •Profits increased due to gains on sale of 2 PE investments
17.5 113.5 1.1 •Concession grew steadily (Impact of COVID-19 will show in FY21.3)
80.4 4,183.9 1.4 •Life insurance premiums increased but loss at former Hartford Life Insurance
-3.8 612.5 -0.3 •Banking and Credit grew steadily, profits increased
156.4 3,287.4 3.3 •Profit from new investments in FY 19.3 (NXT Capital, Avolon) contributed
31.0 148.5 0.3 •Sold Houlihan, UAF and RobecoSAM's ESG rating division, etc.
Total 417.7 10,906.0 2.9 -
JPY bnSegment Profits
Retail
Overseas
Business
Highlight
Corporate
Financial
Services
Maintenance
Leasing
Real Estate
Investment and
Operation
Copyright © 2020 ORIX Corporation All rights reserved. 5
Overview(4) The Impact of the COVID-19 Outbreak in Q4
Items Negative ImpactsImpact Amount
(Pre-tax profits) FY20.3 Q4
①Market fluctuation
Market value of securities held
Liability reserve change of former Hartford life Insurance
OCE (former ROBECO): decrease in AuM
Provision for loan losses due to energy price down in U.S.
-3.0 JPY Bn
-7.0 JPY Bn
-3.0 JPY Bn
-3.0 JPY Bn
② Real estate(facility operation)
Occupancy rate decline / temporally closure of various operating facilities such as hotels and inns
-2.0 JPY Bn
③ Concession(operating 3 Kansai airports)
(No impact for ORIX Q4 results due to 3-months lag for account settlement)
-
④ Aircraft leasing business (No impact for ORIX Q4 results) -
Total ーAbout
-15.0~ -20.0 JPY Bn
✓ About 15.0~20.0 JPY Bn loss due to market fluctuation and occupancy rate decline at operating facilities
✓ The impact from airport concession business will be recorded from FY21.3 Q1, and aircraft leasing business had no impact during FY 20.3 Q4
Copyright © 2020 ORIX Corporation All rights reserved.
✓ Pre-tax profits 412.6 JPY Bn (+4.3% YoY), Net income 302.7 JPY Bn (-6.5% YoY)
Achieved net income target 300 JPY Bn announced in the interim results
✓ ROE 10.3%Aim to achieve ROE of 11% or higher for mid-term
✓ Maintain A credit rating and higherUpgraded to AA- at R&I in February, changed to “Negative” in outlook at Moody’s & Fitch due to COVID-19
✓ Full year dividend per share is 76 JPY (payout ratio 32%)As same as the dividend policy announced in the interim results
✓ Share repurchase of 55.8 JPY Bn (obtaining 34 million shares), cancellation of 11 million sharesInitially we announced 100 JPY Bn repurchase of our shares, but we did not extend beyond the program’s expiry on
May 8th. This is due to our focus on liquidity management.
6
FY20.3 Performance
➢ The impact of COVID-19 yet to be measured. Need more time to understand the short to mid-term direction.
Copyright © 2020 ORIX Corporation All rights reserved.
0.0
0.5
1.0
1.5
2.0
2.5
08.3 09.3 10.3 11.3 12.3 13.3 14.3 15.3 16.3 17.3 18.3 19.3 20.3
Liquidity* Debt within a year (CP, Corporate bonds) Debt within a year (Borrowings)
Liquidity
7
*Liquidity: Cash and cash equivalent (incl. Life Insurance and Bank) + available commitment lines
✓ Maintain high long-term debt ratio (93% at the end of FY20.3)
✓ Liquidity exceeds the total amount of capital market funding and debt with due date within one year
(JPY Tn)
(JPY Tn)
Breakdown of Funding and Trend in Long-term Debt Ratio* Liquidity and Debt within a Year
0%
20%
40%
60%
80%
100%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
16.3 17.3 18.3 19.3 20.3Borrowings from Financial Institutions Capital markets(Long-Term)
Capital markets(CP) Deposits
Long-term Debt Ratio(right axis)
*Excluding deposits
Copyright © 2020 ORIX Corporation All rights reserved.
(JPY Tn)
Bank and Life Insurance
Sales cash inAbout 700 JPY Bn
Financial CFAbout - 300 JPY Bn
New Executions500 JPY Bn
Others NewExecutions
About1 JPY Tn
Stress Test of Liquidity
20.3Liquidity*
21.3Sales and
Investment CF
21.3Financial
CF
21.3Liquidity
✓ No concern over current funding environments. Even with stressed assumptions and possible 500 JPY Bn worth new investments and/or lending, the liquidity at the end of FY21.3 still exceeds 600 JPY Bn
✓ Prioritizing liquidity management, while controlling the pace of new investments and lending
*2 Sales cash in stressed assumptions:1. 30% delay in collection against 1 JPY Tn debt type asset with due date.2. No estimation of large asset sales.
*1 Financial CF stressed assumptions:1. Capital market funding: Cannot roll against the debt due.2. Bank borrowings: Can roll only 50% of debt due.
Bank and Life Insurance
*Liquidity: Cash and cash equivalent (incl. Life Insurance and Bank) + available commitment lines
8
*1
*2
Copyright © 2020 ORIX Corporation All rights reserved.
Business Department Current Situation/ Action
Real estate;Facility operation and rentals
✓ Occupancy rate of hotels and inns is declining significantly due to declining tourism demand
✓ Aquariums closed, and various events at KYOCERA DOME OSAKA canceled
✓ Responding to requests for payment deferral from tenants
Concession(Kansai Airports)
✓ The number of passengers at Kansai International Airport has dropped sharply, and the number at Itami Airport and Kobe Airport reduced by half
✓ Implementing cost reductions efforts for fixed costs such as outsourcing cost
Aircraft Leasing✓ Received requests for payment deferral of leasing fee from many
airline companies
Others
✓ ORIX Corporation Europe’s AuM of asset management business decreased(€287bn Yen at the end of Dec.2019 to €233bn Yen at the end of Mar.2020)
✓ Request for payment deferral of leases and loans worldwide✓ Car rental sales declined in Japan due to lower demand for travel and business trips
Profits from operating business not to be expected for the time being
9
We do not expect profits but total amount of dividends received to date almost equal the initial investment cost
It takes time to recover demand but downside risk is limited
AuM started to increase after April but need to monitor
✓ Returning to usual profit level may take time even the major impact from the pandemic is over.
The Impact of COVID-19
Copyright © 2020 ORIX Corporation All rights reserved. 10
Our View for FY21.3
✓ Major battle against COVID-19 may not conclude in the 1H both in Japan and the rest
of the world
If the situation gradually normalizes by the end of Q3, the net income is estimated at about 180.0 ~ 200.0 JPY Bn
If the situation continues until the end of this fiscal year, the net income is estimated as about 80.0 ~ 120.0 JPY Bn
✓ It is difficult to announce the guidance for this fiscal year at the moment because
there are many uncertainties
Announcement will be made once we have better visibility into our businesses
Copyright © 2020 ORIX Corporation All rights reserved.
Continue GrowthRealize profits at the right time after adding value to the existing investments. Maintain the ROE target 11% or higher for medium to long term
Never Miss Business OpportunitiesWe will not miss business opportunities in order to avoid a credit rating downgradeAt the same time, we are making maximum effort to maintain the credit rating
Strengthen the Shareholders ReturnPrioritize investments but will not hold unnecessary capital, return the excess.
Basic Concepts
11
Mid to Long-term Direction
Announced in October 2019
✓ We expect the market to recover after COVID-19 crisis. It is an opportunity to capture further growth.
✓ While our ambition to achieve net income of 400 JPY Bn and 500 JPY Bn remains unchanged, the time horizon for achieving these goals needs to be reviewed.
✓ The new mid-term business plan will be shared once we can start to see the end of COVID-19 crisis.
Copyright © 2020 ORIX Corporation All rights reserved.
09.3 10.3 11.3 12.3 13.3 14.3 15.3 16.3 17.3 18.3 19.3 20.3
Net Income
✓ORIX’s business environment and customer needs may change in the aftermath of COVID-19
✓Allocation of funds and capital will be determined by taking all stakeholders including business partners and employees into consideration
Seize new opportunity generated by the market change caused by COVID-19
5 consecutive years of record high net income
FY20.3302.7 JPY Bn
Digitalization / acceleration of
AI
Rebuilding the supply chain
From face-to-face to
non-face-to-faceNew risk
management in the enterprise
Increase investment in inspection and medical care
Ensuring employee
safety
Dramatic expansion of
information and communication
investment
Review of share economy
Real estate development under
a new lifestyle
Mid to Long-term Direction
12
etc.
Copyright © 2020 ORIX Corporation All rights reserved.
22 23 27 30 35 35
23.75 29.25 39
46 41
23% 25%27%
30% 32%50%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
16.3 17.3 18.3 19.3 20.3 21.3(Forecast)
Interim Dividend Year-End Dividend Payout Ratio
✓ Full year dividend at 76 yen per share in FY20.3, payout ratio at 32%. Interim dividend forecast in FY21.3 is 35 yen
✓ Raise the payout ratio to 50% for FY21.3 only.
✓ Consideration of the share repurchase after the COVID-19 crisis
Shareholders Return
(JPY)Dividend and Payout Ratio
13
Copyright © 2020 ORIX Corporation All rights reserved.
FY21.3 net income was 302.7 JPY Bn (-6.5% YoY), ROE10.3%
Pre-tax profit was up by 4.3% YoY.
No change in Basic Concepts for management
However, a more cautious approach is merited for the time being.
Summary
14
Allocation of funds and capital will be determined by taking all stakeholders
including business partners and employees into consideration.
Copyright © 2020 ORIX Corporation All rights reserved. 15
Segment Performance
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364.5 353.7 369.9 364.8 361.4 367.1 374.0343.1
2.4%
2.9%
2.3% 2.3% 2.3% 2.2% 2.2%2.5%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
19.3 Q1 19.3 Q2 19.3 Q3 19.3 Q4 20.3 Q1 20.3 Q2 20.3 Q3 20.3 Q4
Installment Loans Yields on Loans
16
Yields on loans = finance revenues classified as loan interest ÷ average balance of installment loans
Segment Performance(1) Corporate Financial Services *As the figures less than 0.1 JPY Bn are rounded off, the total of individual business unit figures does not necessarily match the segment figures
Segment Profits Segment Assets and ROA
(JPY Bn)
(JPY Bn) Yields on loans (JPY Bn)
YoY -10.9 JPY Bn (-43%)Segment Profits: 14.6 JPY Bn YTD -11.5 JPY Bn (-1%)Segment Assets: 948.3 JPY Bn
✓ Agency fee income from life insurance brokerage for corporate customers decreased. Yields on loans were maintained
✓ Yayoi achieved increase in membership for fee-based support services and sales of packaged products
<Impact from the accounting standard change: IDC (Initial Direct Costs) -1.8 JPY Bn>
✓ Operating leases increased due to new lease accounting standards (+53.1 JPY Bn)✓ Focused selection resulting in gradual reduction of financial assets
42.9
19.9
8.4
6.4
5.6
6.2
0
10
20
30
40
50
18.3 19.3 20.3
Domestic Sales Yayoi
891.1 860.7 851.0
100.799.1 97.3
3.2%
1.8%
1.1%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
0
200
400
600
800
1,000
1,200
18.3 19.3 20.3
Domestic Sales Yayoi Segment ROA (after-tax)
Copyright © 2020 ORIX Corporation All rights reserved.
1.171.23
1.281.34
1.401.44
0.5
0.7
0.9
1.1
1.3
1.5
15.3 16.3 17.3 18.3 19.3 20.3
731.3 745.2 740.3
115.9 128.6 149.3
3.3%3.1%
2.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
0
200
400
600
800
1,000
18.3 19.3 20.3
Auto Rentec Segment ROA (after-tax)
17
Segment Performance(2)Maintenance Leasing
Segment Profits Segment Assets and ROA
(JPY Bn)
(JPY Bn) Number of Automobiles Under Management (ORIX Auto)
YoY -5.1 JPY Bn (-13%)Segment Profits: 33.7 JPY Bn YTD +15.8 JPY Bn (+2%)Segment Assets: 889.6 JPY Bn
✓ Revenues from both Auto and Rentec increased✓ SG&A increased due to improved customer service which hurt profits
<Impact from the accounting standard change: IDC (Initial Direct Costs) -2.6 JPY Bn >
✓ IT-related rental assets increased✓ Auto assets remained at the same level as FY19.3
30.4 28.023.6
9.710.8
10.2
0
10
20
30
40
50
18.3 19.3 20.3
Auto Rentec
(Millions of vehicles)
Copyright © 2020 ORIX Corporation All rights reserved.
82.8
57.0
70.173.7 71.9
0
10
20
30
40
50
60
70
80
90
16.3 17.3 18.3 19.3 20.3
18
Segment Performance(3) Real Estate
Segment Profits Segment Assets and ROA(JPY Bn)
(JPY Bn)Unrealized gains
on rental properties*(JPY Bn)
*Including rental properties in segments other than the Real Estate segment*Not including property under facility operations
YoY -12.4 JPY Bn (-14%)Segment Profits: 76.9 JPY Bn YTD +29.5 JPY Bn (+4%)Segment Assets: 749.7 JPY Bn
✓ Gains on sales from ORIX Living in Q2 ✓ Profits in construction works at Daikyo increased YoY due to a last minute demand
before consumption tax hike
✓ Assets decreased due to some selling while new investments continue ✓ Operating lease assets increased due to new lease accounting standards
(+90.4 JPY Bn)
62.470.5
56.5
12.0
18.8
20.4
0
20
40
60
80
100
18.3 19.3 20.3
RE Investment and Facilities Operation DAIKYO
620.2515.4 540.0
181.7
204.8209.7
6.2%
8.0%
7.2%
0
200
400
600
800
1,000
18.3 19.3 20.3
RE Investment and Facilities Operation
DAIKYO
Segment ROA (after-tax)
Copyright © 2020 ORIX Corporation All rights reserved.
46.1
14.2
26.3
25.8
11.1
10.3
12.2
12.9
19.1
0
15
30
45
60
75
90
18.3 19.3 20.3
Investment and Operation Enviroment and Energy Concession
700780
840 870910
0
250
500
750
1,000
18.3 18.9 19.3 19.9 20.3
19
Segment Performance(4) Investment and Operation
(MW)
Segment Profits Segment Assets and ROA(JPY Bn)
(JPY Bn) Solar power generation business in Japan
YoY +17.5 JPY Bn (+46%)Segment Profits: 55.7 JPY Bn YTD +113.5 JPY Bn (+16%)Segment Assets: 847.1 JPY Bn
✓ Two gains on sales in private equity investment posted.Concession performed well (Impact of COVID-19 will show in FY21.3)
✓ Solar power generation business in Japan remained strong
✓ Two new investments and two exits in private equity investment in Japan✓ Operating assets related to environment and energy business increased due to
new lease accounting standards (+34.4 JPY Bn), and made wind power generation investees in overseas into our wholly owned subsidiaries
258.8 288.9 308.2
371.0395.6
478.844.8
49.2
60.1
9.1%
3.7%
4.8%
0
200
400
600
800
1,000
18.3 19.3 20.3
Investment and Operation Enviroment and Energy
Concession Segment ROA (after-tax)
Copyright © 2020 ORIX Corporation All rights reserved. 20
Segment Performance(5)Retail
Segment Profits Segment Assets and ROA(JPY Bn) (JPY Bn) (Millions of policies)
Number of Insurance Policies in Force
YoY -3.8 JPY Bn (-5%)Segment Profits: 80.4 JPY Bn YTD +612.5 JPY Bn (+17%)Segment Assets: 4,183.9 JPY Bn
✓ Life insurance premiums increased but investment return decreased In life insurance (9.1 JPY Bn loss at former Hartford Life Insurance in Q4)
✓ Finance revenues of banking increased
✓ Investment in securities at life insurance business increased ✓ Installment loans at banking business increased
3.944.10 4.26 4.39 4.53
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
18.3 18.9 19.3 19.9 20.3
1,055.6 1,254.71,580.2
1,937.4
2,132.7
2,421.5181.4
184.1
182.2
1.6%1.7%
1.4%
0
1,000
2,000
3,000
4,000
5,000
18.3 19.3 20.3
Life Insurance Banking Credit Segment ROA (after-tax)
44.349.5
43.1
20.5
24.126.1
9.8
10.611.3
0
15
30
45
60
75
90
18.3 19.3 20.3
Life Insurance Banking Credit
Copyright © 2020 ORIX Corporation All rights reserved. 21
FY19.3Large-scale investment
FY20.3Segment profits
NXT Capital(Loan origination, asset management)
10.2 JPY Bn
Avolon(Aircraft leasing)
17.5 JPY Bn
OCU: ORIX Corporation USAOCE: ORIX Corporation Europe
Contribution from new investmentsSegment Profits Segment Assets and ROA
(JPY Bn)
(JPY Bn)
Segment Performance(6) Overseas Business
YoY +31.0 JPY Bn (+25%)Segment Profits: 156.4 JPY Bn YTD +148.5 JPY Bn (+5%)Segment Assets: 3,287.4 JPY Bn
✓ Profit from new investments in FY19.3 (NXT Capital, Avolon)✓ In OCE, sales of a division of RobecoSAM which collects, analyzes and evaluates ESG
data✓ Foreign exchange impact -4.6 JPY Bn
✓ Installment loans at OCU and aircraft operating lease assets increased✓ Excluding foreign exchange impact of -122.7 JPY Bn, segment assets increased by
271.3 JPY Bn
40.048.8
55.8
44.535.1
43.3
19.835.8
44.6
2.4
5.7
12.8
0
20
40
60
80
100
120
140
160
18.3 19.3 20.3
OCU OCE Aircraft, Ships Asia and Australia and other
869.71,152.9
1,374.0
353.8
343.1
317.8381.7
646.3585.3
1,003.6
996.71,010.3
2.8%3.0%
3.3%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
18.3 19.3 20.3
OCU OCE
Aircraft, Ships Asia and Australia and other
Segment ROA (after-tax)
Copyright © 2020 ORIX Corporation All rights reserved.
Appendix
22
Copyright © 2020 ORIX Corporation All rights reserved.
0
50
100
150
200
250
300
350
1975 1980 1985 1990 1995 2000 2005 2010 2015 20201964
(JPY Bn)
✓ ORIX has achieved 55 years of sustained, profitable growth
Net Income Attributable to ORIX Corporation Shareholders
FY2002.3Burst of IT bubble
FY2009.3Global financial crisis
FY1998.3
FY1993.3
Asian currency crisis
Burst of Japan'sbubble economy
About ORIX Proven Track Record of Profitability
23
Copyright © 2020 ORIX Corporation All rights reserved.
✓ ORIX will continue to enhance our expertise in finance and tangible assets as we synergistically expand our businesses
About ORIX Expertise in Business and Collective Capabilities of the Group
24
Copyright © 2020 ORIX Corporation All rights reserved.
4%8%
18%
13%
19%
38%
9%
8%
7%
8%
38%
30%
Segment Assets
10.9 JPY Tn
FY20.3
✓ Individual businesses demonstrate their strengths to the maximum extent possible to bring about synergies
Corporate Financial Services
Finance and fee business
Maintenance LeasingAutomobile leasing and rentals, car-sharing; test and measurement instruments and IT-related equipment rentals and leasing
Real EstateReal estate development, rental and management; facility operation; real estate investment management
Investment and Operation
Environment and energy, private equity and concession
Retail Life insurance, banking and consumer finance
Overseas BusinessAsset management, aircraft- and ship-related operations, private equity and finance
Segment Profits
417.7 JPY Bn
FY20.3
About ORIX Profits and Assets by Segment
25
Copyright © 2020 ORIX Corporation All rights reserved.
✓ Using its expertise cultivated in Japan, ORIX has expanded its business globally, with operations in 37 countries and regions worldwide
About ORIX Global Network
26
Copyright © 2020 ORIX Corporation All rights reserved.
Financials (1) Funding Structure
✓ Diversified funding. Controlled costs while maintaining a high long-term debt ratio
Breakdown of Funding
As of Mar 31, 2020
*Excluding deposits
Trend in Funding Costs and Long-term Debt Ratio*
CP0.3% 0%
20%
40%
60%
80%
100%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
16.3 17.3 18.3 19.3 20.3
Funding Cost(left axis:JPY) Funding Cost(left axis:Foreign Currency)
Long-term Debt Ratio(right axis)
27
Copyright © 2020 ORIX Corporation All rights reserved.
Financials (2) Debt-to-Equity Ratio
✓ Debt-to-Equity Ratio continuously stays at a low level
Trend in Debt-to-Equity Ratio
2.5×
2.3×2.2× 2.2×
2.3×
1.9×
1.7×
1.5×1.6×
1.5×
0
1
2
3
4
5
6
7
16.3 17.3 18.3 19.3 20.3
Total ORIX Corporation Shareholders’ Equity
Deposits
Short- and Long-Term Debt
(Excluding Deposits)
Debt-to-Equity Ratio
(Including Deposits)
Debt-to-Equity Ratio
(Excluding Deposits)
(JPY Tn)
28
Copyright © 2020 ORIX Corporation All rights reserved.
13%
43%
28%
15%
Fincance Operation Investment Unemployed
Capital Allocation
✓ Employed capital ratio: the ratio shows the usage percentage of ORIX shareholders’ equity.
Continue to aim growth controlling risks and returns.
Shareholders’ Equity/Employed Capital Ratio
29
(JPY Bn)
Capital Allocation
2,310.4 2,507.7
2,682.4 2,897.1 2,993.6
78%
85% 85%88%
85%
40%
60%
80%
100%
0.0
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
16.3 17.3 18.3 19.3 20.3
Shareholders’ Equity Employed Capital Ratio
Copyright © 2020 ORIX Corporation All rights reserved.
4.3%
3.6%
4.2%
0
50
100
150
200
250
18.3 19.3 20.3
Fixed Income Tangible Assets Equity ROA (after-tax)
1.5%1.1%
0.9%
0
50
100
150
200
250
18.3 19.3 20.3
Japan Overseas ROA (after-tax)
4.5% 4.5%
3.9%
0
50
100
150
200
250
18.3 19.3 20.3
Financial Services Environment/Infrastructure
Maintenance Services Others
ROA (after-tax)
Segment Profits
OperationFinance Investment
(JPY Bn) (JPY Bn) (JPY Bn)
See P.31 for details on the three categoriesPerformance in Three Categories
30
Copyright © 2020 ORIX Corporation All rights reserved.
Business Portfolio in Three Categories
Main Risk
Capital Requirement
Japan OverseasEnvironment/
Infrastructure
Financial
Services
Maintenance
ServicesOthers
Fixed
Income
Tangible
AssetsEquity
Corporate Financial
Services
Leasing, Loan,
Fee businessYayoi
New business
development
Maintenance
Leasing
ORIX Auto,
ORIX Rentec
Real Estate Facility operation,
DAIKYO
REIT,
RE investment
advisory
RE investment
Investment and
Operation
Environment and
energy,
Concession
Loan
servicingPE investment
RetailBanking,
Consumer finance,
Gurantee
Life insurance
Overseas Business Leasing, LoanAsset
Management
Bond
investmentAircraft, Ships PE investment
Finance Operation Investment
Category
Credit risk Operation/Business risk Market risk
Low Medium-High High
Segment
31
Copyright © 2020 ORIX Corporation All rights reserved.
◼ These materials have been prepared by ORIX Corporation (“ORIX” or the “Company”) solely for your information and are subject to change without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No representations, warranties or undertakings, expressed or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness, or correctness of the information or the opinions presented or contained in these materials.
◼ These materials contain forward-looking statements that reflect the Company’s intent, belief and current expectations about future events and financial results. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. These forward-looking statements are not guarantees of future performance. They are based on a number of assumptions about the Company’s operations and are subject to risks, uncertainties and other factors beyond the Company’s control. Accordingly, actual results may differ materially from these forward-looking statements. Factors that could cause such differences include, but are not limited to, those described under “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission and under “Business Risk” of the securities report (yukashouken houkokusho) filed with the Director of the Kanto Local Finance Bureau and of the consolidated financial results filed with the Tokyo Stock Exchange.
◼ Some of the financial information in these materials is unaudited.
◼ The Company believes that it will be considered a “passive foreign investment company” for United States Federal income tax purpose in the year to which these consolidated financial results relate and for the foreseeable future by reason of the composition of its assets and the nature of its income. A U.S. holder of the shares or ADSs of the Company is therefore subject to special rules generally intended to eliminate any benefits from the deferral of U.S. Federal income tax that a holder could derive from investing in a foreign corporation that does not distribute all of its earnings on a current basis. Investors should consult their tax advisors with respect to such rules, which are summarized in the Company’s annual report.
◼ Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by the Company or any affiliate thereof.
Disclaimer
32
Copyright © 2020 ORIX Corporation All rights reserved.
For the current IR materials and archives of past financial data, please access our website.
IR Section
https://www.orix.co.jp/grp/en/ir/
IR Library
https://www.orix.co.jp/grp/en/ir/library/
ORIX Corporation Corporate Planning DepartmentWorld Trade Center Building, 2-4-1, Hamamatsu-cho, Minato-ku, Tokyo 105-6135, Japan
Tel: +81-3-3435-3121 Fax: [email protected]
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