Slide 1: Third Quarter Consolidated Financial Results
ORIX Corporation Third Quarter Consolidated Financial Results For the Nine-Month Period Ended December 31, 2016 Kazuo Kojima Deputy President & CFO Shintaro Agata Corporate Executive Vice President, Head of Treasury Headquarters Takao Kato Corporate Senior Vice President, Head of Accounting Headquar
Slide 2: Overview (1)
Overview（1） 217.1bn yen in net income, up by 1% YoY Annualized ROE at 12.2% Net Income* and ROE (JPY Bn) 230 13.0% 12.2% 210 12.3% 190 170 150 130 215.4 217.1 110 185.4 90 70 50 15.3 Q3 16.3 Q3 17.3 Q3 Net Income ROE (annualized) *Net Income refers to Net Income Attributable to ORIX Corporation
Slide 3: Overview (2)
Overview（2） Segment profits at 329.1bn yen, up by 2% YoY Positive profit growth in Investment and Operation, Real Estate and Retail Despite the impact from a strong yen during the period, Overseas Business continued to make sizable contribution Segment Profits (JPY Bn) 350 323.4 329.1 300 277.
Slide 4: Overview (3)
Overview（3） Segment assets at 8,896.7bn yen, down by 1% YTD Overseas Business assets increased by 6% YTD due to increases in investment in the Americas and aircraft-related business Segment Assets ROA maintained at above 3% Segment Assets and ROA (JPY Tn) 10 3.8% 3.2% 3.2% 3.0% 3.3% 8 2.9% Ove
Slide 5: Overview (4)
Overview（4） Pretax profits: 0.6bn yen decrease YoY (▲0%) Recent strong yen reduced pretax profits by 12.5bn yen YoY Environment and energy business and Concession business made positive contribution as part of the existing operation; income from aircraft-related business also increased Gains
Slide 6: Segment Performance (1) Corporate Financial Services
Segment Performance（1）Corporate Financial Services Segment profits: 26.3bn yen, down by 7.5bn yen YoY (▲22%) Finance revenues decreased due to lower installment loan balance, and gains on sales of securities were lower compared to last year Services income continued to increase steadily Segm
Slide 7: Segment Performance (2) Maintenance Leasing
Segment Performance（2）Maintenance Leasing Segment profits: 28.6bn yen, down by 5.0bn yen YoY (▲15%) Profit contribution from Operating leases, which includes gains on sales of used vehicles, decreased by 3.8bn yen YoY Segment assets: 731.5bn yen, up by 0.2bn yen YTD (0%) Increase in new auto
Slide 8: Segment Performance (3) Real Estate
Segment Performance（3）Real Estate Segment profits: 49.7bn yen, up by 5.3bn yen YoY (+12%) Realized gains from well-timed sales of RE assets Segment assets: 680.2bn yen, down by 59.4bn yen YTD (▲8%) Assets decreased due to rental property sales Segment Revenues/Profits Segment Assets/ROA （JPY
Slide 9: Segment Performance (4) Investment and Operation
Segment Performance（4）Investment and Operation Segment profits: 68.8bn yen, up by 22.1bn yen YoY (+47%) Profit growth largely driven by exit of PE investments and services income growth in environment and energy business Segment assets: 697.6bn yen, down by 6.6bn yen YTD (▲1%) New investment
Slide 10: Segment Performance (5) Retail
Segment Performance（5）Retail Segment profits: 60.1bn yen, up by 11.2bn yen YoY (+23%) Life insurance premiums and related investment income increased; Finance revenues from banking business also increased Segment assets: 3,331.6bn yen, down by 131.2bn yen YTD (▲4%) Segment assets decreased l
Slide 11: Segment Performance (6) Overseas Business
Segment Performance（6）Overseas Business Segment profits: 95.6bn yen, down by 20.4bn yen YoY (▲18%) 12.5bn yen decrease from forex; last year we recognized gains (39.6bn yen) from Houlihan Lokey’s IPO 20.2bn yen of gains on sales of PE investments in the Americas during the third quarter this y
Slide 12: Performance in Three Categories
See P.31 for details on the Performance in Three Categories three categories “Investment”, which recognized capital gains from PE investment exits and sales of RE assets, was a major driver behind the overall profits growth “Operation” also achieved steady profits growth due to expansion in Envi
Slide 13: Summary
Summary Net income at 217.1bn yen, annualized ROE at 12.2% Solid overall results With a focus on “Operation” and “Investment”, continue to develop new businesses and further strengthen stable earning streams Copyright © 2017 ORIX Corporation All rights reserved. 12
Slide 14: Appendix
Appendix Copyright © 2017 ORIX Corporation All rights reserved. 13
Slide 15: About ORIX: Proven Track Record of Profitability
About ORIX Proven Track Record of Profitability ORIX has maintained profitability for the past 51 consecutive years Net Income Attributable to ORIX Corporation Shareholders Copyright © 2017 ORIX Corporation All rights reserved. 14
Slide 16: About ORIX: Evolving and Dynamic Portfolio
About ORIX Evolving and Dynamic Portfolio ORIX leverages its operational know-how to evolve, diversify and adapt its portfolio to take advantage of changing macroeconomic conditions Infrastructure Copyright © 2017 ORIX Corporation All rights reserved. 15
Slide 17: About ORIX: Business by Segment
About ORIX Business by Segment Our highly diversified company contains many complementary businesses, providing ample opportunity for synergies and knowledge sharing Corporate Financial HL* 11% Lending, Leasing, Fee businesses Services 11% Automobile leasing and rentals, Car Segment Profits sharin
Slide 18: About ORIX: Global Network
About ORIX Global Network ORIX has spread its business globally by expanding operations in 37 countries and regions worldwide (As of 2016.3.31) Copyright © 2017 ORIX Corporation All rights reserved. 17
Slide 19: Appendix (1) Performance Overview
Appendix(1) Performance Overview （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Total Revenues 2,174.3 2,369.2 1,572.0 1,797.1 1,925.8 107% Net Income *1 234.9 260.2 185.4 215.4 217.1 101% Segment Assets 9,170.2 8,972.4 9,287.7 8,941.4 8,896.7 99% Total Assets 11,439.9 10,992.9 11,376.6
Slide 20: Appendix (2) Profits by Segment
Appendix(2) Profits by Segment （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Corporate Financial Services 25.5 42.4 18.7 33.8 26.3 78% Maintenance Leasing 40.4 42.9 31.6 33.7 28.6 85% Real Estate 3.5 42.9 22.5 44.4 49.7 112% Investment and Operation 42.4 57.2 23.0 46.7 68.8 147% Retail
Slide 21: Appendix (3) Assets by Segment
Appendix(3) Assets by Segment （JPY Bn） Change 15.3 16.3 14.12 15.12 16.12 (YTD) Corporate Financial Services 1,132.5 1,049.9 1,083.2 1,058.7 1,038.9 99% Maintenance Leasing 662.9 731.3 675.8 717.8 731.5 100% Real Estate 835.4 739.6 877.6 744.9 680.2 92% Investment and Operation 660.0 704.2 611.5 628
Slide 22: Appendix (4) Income Statement Data
Appendix(4) Income Statement Data （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Finance revenues 186.9 200.9 139.3 152.6 147.9 97% Gains on investment securities and dividends 56.4 35.8 38.0 33.0 24.4 74% Operating leases 124.9 128.8 101.4 100.7 108.4 108% Life insurance premiums and r
Slide 23: Appendix (5) Funding
Appendix(5) Funding （JPY Bn） Change Funding 15.3 16.3 14.12 15.12 16.12 (YoY) CP 89.6 102.4 145.6 73.7 42.0 -31.7 Borrowings from Financial Institutions 2,881.6 2,970.6 2,726.5 2,884.2 2,938.7 54.5 Bonds / MTN 1,151.5 938.1 1,143.2 1,075.6 906.1 -169.5 Deposits 1,287.4 1,398.5 1,250.1 1,385.7 1,526.
Slide 24: Appendix (6) Corporate Financial Services
Appendix(6) Corporate Financial Services （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Finance revenues 35.6 34.2 27.0 26.1 22.9 88% Operating leases 24.5 25.5 18.4 19.2 18.6 97% Services income 22.0 35.7 13.6 25.8 28.8 111% Sales of goods and real estate and 3.4 11.7 2.1 10.4 5.3 51%
Slide 25: Appendix (7) Maintenance Leasing
Appendix(7) Maintenance Leasing （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Finance revenues 11.1 12.1 8.0 8.9 9.7 109% Operating leases 185.7 188.8 140.4 142.0 140.0 99% Services income 62.5 66.8 47.0 50.8 50.1 99% Segment Revenues 263.5 271.7 198.2 204.7 202.7 99% Segment Expenses
Slide 26: Appendix (8) Real Estate (1)
Appendix(8) Real Estate (1) （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Finance revenues 4.1 6.7 3.2 6.1 1.8 29% Operating leases 63.8 60.3 55.9 50.1 59.6 119% Gains on Rental Property Sales 14.9 16.1 18.1 16.4 30.3 185% Services income 104.1 110.6 81.6 86.7 86.0 99% Sales of goods a
Slide 27: Appendix (9) Real Estate (2)
Appendix(9) Real Estate (2) ■Breakdown of Real Estate Segment Assets （JPY Bn） Change 15.3 16.3 14.12 15.12 16.12 (YTD) Rental Property 566.9 493.4 598.8 508.5 392.4 80% Under Lease 471.5 406.1 494.7 422.9 336.2 83% Under Development 95.4 87.3 104.1 85.6 56.2 64% Condo Assets 16.5 5.9 22.7 7.5 5.5 93
Slide 28: Appendix (10) Investment and Operation
Appendix(10) Investment and Operation （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Finance revenues 15.7 12.6 11.6 10.4 7.9 76% Gains on investment securities and dividends 9.3 10.3 6.9 10.1 11.5 114% Sales of goods and real estate 371.4 718.9 220.7 527.6 627.0 119% Services income 26
Slide 29: Appendix (11) Retail
Appendix(11) Retail （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Finance revenues 52.5 55.3 39.6 41.2 43.7 106% Life insurance premiums and 352.5 190.8 276.2 161.6 222.5 138% related investment income Services income and others 20.9 8.2 19.4 6.0 8.6 143% Segment Revenues 426.0 254.3 3
Slide 30: Appendix (12) Overseas Business (1)
Appendix(12) Overseas Business (1) （JPY Bn） Change FY15.3 FY16.3 15.3 Q3 16.3 Q3 17.3 Q3 (YoY) Finance revenues 63.3 75.0 46.5 55.9 59.2 106% Gain on investment securities and dividends 30.5 16.1 14.0 13.8 9.1 66% Operating leases 82.1 92.0 60.0 67.3 65.9 98% Services income 321.5 250.1 235.3 198.6
Slide 31: Appendix (13) Overseas Business (2)
Appendix(13) Overseas Business (2) ■Overseas Business segment assets breakdown （JPY Bn） Change By Region 15.3 16.3 14.12 15.12 16.12 (YTD) The Americas 776.2 787.2 767.4 774.3 894.0 114% Asia and Australia (Other than Greater China) 591.5 592.3 635.5 611.2 597.9 101% Greater China 249.2 260.3 250.7
Slide 32: Appendix (14) Business Portfolio in Three Categories
Appendix(14) Business Portfolio in Three Categories Finance Operation Investment Main Risk Credit risk Operation/Business risk Market risk Categories Capital Low Medium High Requirement Environment/ Financial Maintenance Tangible Japan Ex-Japan Others Fixed Income Equity Infrastructure Services Serv
Slide 33: Reference Data
Reference Data Copyright © 2017 ORIX Corporation All rights reserved. 32
Slide 34: Macro Economic Indicators
Macro Economic Indicators National CPI (Ex Fresh Food) Trends in Machinery Orders (YoY Change) JPY Tn % Change 3.5 4.0 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 0.5 1.0 0.0 0.5 -0.5 -1.0 0.0 12.9 13.9 14.9 15.9 16.9 12.9 13.9 14.9 15.9 16.9 Japan U.S China Private demand excl. volatile orders* Manufac
Slide 35: Japanese Corporate Indices
Japanese Corporate Indices Corporate Bankruptcies Tankan Corporate Diffusion Index (Quarterly Basis) (Quarterly Basis) JPY Tn Cases 40 3.0 4,000 3,000 30 2.0 2,000 20 1.0 1,000 10 0.0 0 0 12.12 13.12 14.12 15.12 16.12 12.12 13.12 14.12 15.12 16.12 Liabilities (left) Bankruptcies (right) Large Medium
Slide 36: Japanese Real Estate Indicators
Japanese Real Estate Indicators Japan TSE REIT Index Office Rental Rates Yen per 3.3㎡ 2,000 20,000 1,500 16,000 1,000 12,000 500 8,000 12.12 13.12 14.12 15.12 16.12 12.12 13.12 14.12 15.12 16.12 Tokyo Avg. Rent Osaka Avg. Rent Source: Tokyo Stock Exchange Source: Miki Shoji Copyright © 2017 ORIX Cor
Slide 37: Domestic Lease Business Indicators
Domestic Lease Business Indicators Private Equipment Investment New Car Sales JPY Tn 1,000 Units 100 12.0% 7,000 14.0% 千 10.0% 6,000 12.0% 80 8.0% 5,000 10.0% 60 4,000 8.0% 6.0% 40 3,000 6.0% 4.0% 2,000 4.0% 20 2.0% 1,000 2.0% 0 0.0% 04.3 06.3 08.3 10.3 12.3 14.3 16.3 0 0.0% 05.12 07.12 09.12 11.12
Slide 38: Other Domestic Indicators
Other Domestic Indicators Number of condominium sold in the Domestic Shipping Amount of Solar Cell Tokyo metropolitan area No. of transactions MW 60,000 10,000 50,000 8,000 Others 40,000 Residential 6,000 30,000 4,000 20,000 2,000 10,000 0 0 09.12 10.12 11.12 12.12 13.12 14.12 15.12 16.12 10.3 11.3
Slide 39: Other Domestic Indicators
Other Domestic Indicators The number of M&A deals The number of the New Listed Companies OUT-IN 100 3,000 IN-OUT IN-IN 2,500 80 2,000 60 1,500 40 1,000 20 500 0 0 10.12 11.12 12.12 13.12 14.12 15.12 10.12 11.12 12.12 13.12 14.12 15.12 16.12 Source: RECOF Corporation Source: Tokyo Stock Exchange Copy
Slide 40: Other Domestic Indicators
Other Domestic Indicators Premium Income for Individual Insurance Consumer Finance Loan Balance JPY Bn JPY Bn 25,000 15,000 20,000 12,000 15,000 9,000 10,000 6,000 5,000 3,000 0 0 06.3 08.3 10.3 12.3 14.3 16.3 06.3 08.3 10.3 12.3 14.3 16.3 Source: Japan Statistics Bureau Source: Japan Financial Serv
Slide 41: 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,
Slide 42: ORIX Corporation
For the current IR materials and archives of past financial data please access our website ORIX Website http://www.orix.co.jp/grp/en/ IR Section http://www.orix.co.jp/grp/en/ir/ ORIX Corporation Corporate Planning Department World Trade Center Building., 2-4-1, Hamamatsu-cho, Minato-ku, Tokyo 105-61