Orix Corporation · TSE:8591

Orix — Investor Presentation (September 2011)

37 slides from Orix's investor presentation, Sep 15, 2011

  1. Slide 1: Copyright © 2009 ORIX Corporation All rights reserved.

    Copyright © 2009 ORIX Corporation All rights reserved.

  2. Slide 2: ORIX Today, the ORIX of Tomorrow

    ORIX Today, the ORIX of Tomorrow ORIX Corporation Haruyuki Urata, Deputy President and CFO September 15, 2011 Copyright © 2009 ORIX Corporation All rights reserved.

  3. Slide 3: Disclaimer

    Disclaimer „ 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,

  4. Slide 4: Contents

    Contents I. About ORIX II. ORIX’s Strengths III. Future Growth Strategy Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserved. 3

  5. Slide 5: About ORIX (1): Continuous profitability, sustainable growth

    I. About ORIX (1) „ Continuous profitability for 47 years, achieving sustainable growth Fiscal Year Ended (JPY Bn) March 2009 Collapse of 200 Net Income Attributable to ORIX Corporation Lehman Brothers Fiscal Year Ending March 2012 180 77.5 Bn (Forecast) 160 140 Fiscal Year Ended Fiscal Year Ended M

  6. Slide 6: About ORIX (2): Expansion into neighboring areas

    I. About ORIX (2) „ Expansion into neighboring areas while increasing finance and asset expertise Credit Evaluation 7. Diversification into and Financing 3. Diversification into Investment Banking Other Financial Areas 9 Principal Investment 9 Venture Capital 9 M&A Advisory 2. Diversification in the

  7. Slide 7: About ORIX (3): Trend in Segment Profits

    I. About ORIX (3) „ Over 70% net income growth for two consecutive years (FY 10.3, FY 11.3) „ 23.7 bn 1Q net income, up 44% year on year „ Achieved 31% of 77.5 bn fiscal year forecast Trend in Segment Profits (JPY Bn) Corporate Financial Services 150 120 Investment Banking 90 Maintenance Leasing 60

  8. Slide 8: About ORIX (4): Trend in Segment Assets

    I. About ORIX (4) „ Increased ROA while maintaining asset levels Trend in Segment Assets (JPY Trn) 8.0 1.6% Corporate Financial Services 7.0 6.0 1.2% Maintenance Leasing 5.0 Real Estate 4.0 0.8% 3.0 Investment Banking 2.0 0.4% Retail 1.0 0.0 0.0% Overseas Business 09.3 10.3 11.3 12.3 Segment ROA (Af

  9. Slide 9: I. About ORIX

    I. About ORIX II. ORIX’s Strengths III. Future Growth Strategy Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserved. 8

  10. Slide 10: ORIX's Strengths

    II. ORIX’s Strengths „ ORIX’s strengths are its diversified portfolio, network and balanced funding structure Diversified business portfolio Domestic and overseas Balanced network funding structure Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserv

  11. Slide 11: II. ORIX's Strengths

    I. About ORIX II. ORIX’s Strengths 1. Diversified Business Portfolio 2. Domestic and Overseas Network 3. Balanced Funding Structure III. Future Growth Strategy Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserved. 10

  12. Slide 12: Diversified Business Portfolio: Stable profits

    II. ORIX’s Strengths 1. Diversified Business Portfolio „ Maintained solid and stable profits through diversification despite upheavals Net Income Attributable to ORIX Corporation Event Effect of Diversification Fiscal Year Ended Bursting of the Significant decrease in lending, operating March 2009 (

  13. Slide 13: Diversified Business Portfolio: Capturing new business chances

    II. ORIX’s Strengths 1. Diversified Business Portfolio „ Captured new business chances during significant environment changes Bursting of the ¾ Capitalized on collection and real estate collateral disposal know-how, diversifying into Economic Bubble sophisticated businesses such as real estate-relat

  14. Slide 14: 2. Domestic and Overseas Network

    I. About ORIX II. ORIX’s Strengths 1. Diversified Business Portfolio 2. Domestic and Overseas Network 3. Balanced Funding Structure III. Future Growth Strategy Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserved. 13

  15. Slide 15: Domestic and Overseas Network: 26 countries, 306 locations

    II. ORIX’s Strengths 2. Domestic and Overseas Network „ Since expanding to Hong Kong 40 years ago, ORIX has established an overseas network consisting of 26 countries and regions with 306 locations 1971 Hong Kong 1991 Ireland 1972 Singapore 1993 India Business Network 1973 Malaysia 1994 Oman Develop

  16. Slide 16: Regional representatives strengthen the network

    II. ORIX’s Strengths 2. Domestic and Overseas Network „ Regional representative strengthen the network and improve Group strength 1. Group Sapporo Rep. (55) 4. Group Osaka Rep. (142) ORIX (1) ORIX (11) ORIX Auto (51) ORIX Auto (84) ORIX Rentec (1) ORIX Rentec (2) ORIX Life Insurance (1) ORIX Life In

  17. Slide 17: 3. Balanced Funding Structure

    I. About ORIX II. ORIX’s Strengths 1. Diversified Business Portfolio 2. Domestic and Overseas Network 3. Balanced Funding Structure III. Future Growth Strategy Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserved. 16

  18. Slide 18: Balanced Funding Structure: Interest-bearing debt

    II. ORIX’s Strengths 3. Balanced Funding Structure „ ORIX has created a balance funding structure and lengthened its debt Trend in Interest-bearing Debt and (JPY Bn) Share of Long-term Debt 7,000 95% MTN 6,000 90% CP 5,000 85% Deposits 4,000 80% Bonds 3,000 75% Borowing from Financial 2,000 Institut

  19. Slide 19: Balanced Funding Structure: Ample liquidity

    II. ORIX’s Strengths 3. Balanced Funding Structure „ Maintained ample liquidity Liquidity vs. Short-term Liabilities (JPY Bn) 1,600 1,400 204% Available Commitment Line 1 146% 148% Cash and Cash Equivalents 1,200 105% Current Redemptions (Bonds / MTN) 1,000 88% 2 CP 800 Liquidity Coverage Ratio (1 ÷

  20. Slide 20: Summary: Constantly Create New Value

    II. ORIX’s Strengths Summary „ ORIX has three major strengths and an underlying DNA of creating new value Diversified business portfolio Constantly Create New Value, Grow While Evolving Domestic and Balanced overseas funding structure network Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corpo

  21. Slide 21: III. Future Growth Strategy

    I. About ORIX II. ORIX’s Strengths III. Future Growth Strategy 1. Increase the Pace of “Finance + Services” 2. Embrace Growth in Emerging Markets such as Asia Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserved. 20

  22. Slide 22: Increase the Pace of Finance + Services

    III. Future Growth Strategy 1. Increase the Pace of “Finance + Services” „ ORIX proposes solutions to clients capitalizing on the concentrated expertise from its blended knowledge and group network Maintenance Real Needs Leasing Estate Broad Client Base Corporate Ranging from Domestic Financial Serv

  23. Slide 23: Automobile leasing evolved from finance to services

    III. Future Growth Strategy 1. Increase the Pace of “Finance + Services” „ The automobile leasing business evolved from finance to services 1970s 1980s 1990s 2000s 2010s Outsourcing Reduction of Needs Funding Streamline Vehicle environmental Cost reduction management Tax reduction Vehicle optimizati

  24. Slide 24: High value-added services across a broad value chain

    III. Future Growth Strategy 1. Increase the Pace of “Finance + Services” „ Providing high value-added services capitalizing on a broad value chain 1970s 1980s 1990s 2000s 2010s Initiatives Joint Investment New with a Partner es Administration & AM Business v ic Fee Ser ded Loan Servicing e-ad alu De

  25. Slide 25: Aircraft leasing evolved to asset management and investment

    III. Future Growth Strategy 1. Increase the Pace of “Finance + Services” „ Aircraft leasing evolved from leasing to include asset management and equity investment 1970s 1980s 1990s 2000s 2010s New Areas and Business Risks PE Investment Joint Investment with a e Partner r tis e exp te d Brokerage i c

  26. Slide 26: US Operations: Balanced asset and fee business portfolio

    III. Future Growth Strategy 1. Increase the Pace of “Finance + Services” „ Maintain a strong position under any economic environment „ Balanced asset and fee business portfolio US Operations Assets/Profits (JPY Bn) (JPY Bn) 600 Assets (Left) 35 Profits (Right) 500 30 Fee Business Portfolio 25 400 Ad

  27. Slide 27: 2. Embrace Growth in Emerging Markets such as Asia

    I. About ORIX II. ORIX’s Strengths III. Future Growth Strategy 1. Increase the Pace of “Finance + Services” 2. Embrace Growth in Emerging Markets such as Asia Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation All All rights rights reserved. reserved. 26

  28. Slide 28: Asia and Other: Assets and profits

    III. Future Growth Strategy 2. Embrace Em Growth in Emerging Markets such as Asia „ Strengthen the trend of profit growth while embracing economic growth Asia and Other Assets/Profits (JPY Bn) (JPY Bn) 700 Assets (Left) 45 Profits (Right) 40 600 35 500 30 400 25 300 20 15 200 10 100 5 0 0 07.03 08.0

  29. Slide 29: Operations in Greater China

    III. Future Growth Strategy 2. Embrace Em Growth in Emerging Markets such as Asia Operations in Greater China „ Established: Hong Kong: September 1971, Taiwan: September 1982, China: August 2004 „ Locations: Hong Kong: 2, Taiwan: 7, China: 15 „ Employees: Approx. 500 „ Operations: Leasing, Automobil

  30. Slide 30: Operations in South Korea

    III. Future Growth Strategy 2. Embrace Em Growth in Emerging Markets such as Asia Operations in South Korea „ Established: February 2004 „ Locations: 6 „ Employees: Approx. 200 „ Operations: Leasing, Automobile Leasing, Rentals, Hire Purchase, Lending, Equity Investment „ Main Companies: ORIX Capita

  31. Slide 31: Operations in Malaysia

    III. Future Growth Strategy 2. Embrace Em Growth in Emerging Markets such as Asia Operations in Malaysia „ Established: September 1973 „ Locations: 25 „ Employees: Approx. 650 „ Operations: Leasing, Automobile Leasing, Automobile Rentals, Rentals, Hire Purchase, Lending, Investment in Non-Performing

  32. Slide 32: Operations in Oceania

    III. Future Growth Strategy 2. Embrace Em Growth in Emerging Markets such as Asia Operations in Oeania „ Established: July 1986 „ Locations: 19 „ Employees: Approx. 300 „ Operations: Automobile Leasing, Automobile Rental „ Main Companies: ORIX Australia Corporation Limited, ORIX New Zealand Limited

  33. Slide 33: Examples of continued investments in Asia

    III. Future Growth Strategy 2. Embrace Em Growth in Emerging Markets such as Asia „ Examples of continued investments in Asia Company Name Country Business AirAsia X Malaysia Air Carrier (LCC) Pre- 2009.03 Malaysia Hotel Business Tune Hotels Condominium Federal Land-Orix (Midori) Philippines Develop

  34. Slide 34: Summary: Future Growth Strategy

    III. Future Growth Strategy Summary Constantly Create New Value, Grow While Evolving 9 Increase the Pace of “Finance + Services” 9 Embrace Growth in Emerging Markets such as Asia Move toward a new growth track while fully demonstrating ORIX’s capabilities Copyright Copyright©©2011 ORIX Corporation 2

  35. Slide 35: Reconciliation Table of Non-GAAP Financial Measurement

    Appendix Reconciliation Table of Non-GAAP Financial Measurement These materials include certain financial measures presented on a basis not in accordance with U.S. GAAP, or non-GAAP measures, including long-term debt, ORIX Corporation shareholders’ equity and total assets, as well as other measures

  36. Slide 36: Reconciliation Table of Non-GAAP Financial Measurement

    Appendix Reconciliation Table of Non-GAAP Financial Measurement (JPY Bn) (*) Deducted payable under securitized leases, loan receivables and investment in securities recorded in long-term debt of consolidated VIEs from long-term debt Copyright Copyright©©2011 ORIX Corporation 2009ORIX Corporation Al

  37. Slide 37: Additional Information

    Additional Information For annual and more historical data please access our website. A list of major disclosure materials is given below. ORIX Website: URL: http://www.orix.co.jp/grp/en/ IR Website: URL: http://www.orix.co.jp/grp/en/ir/ Financial Reports: URL: http://www.orix.co.jp/grp/en/ir/librar

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