Orix Corporation · TSE:8591
Orix — Investor Presentation (September 2013)
31 slides from Orix's investor presentation, Sep 13, 2013
Slide 1: ORIX Corporation Business Seminar: About the Overseas Business
ORIX Corporation Business Seminar About the Overseas Business Yuki Ohshima Corporate Executive Vice President Head of Global Business and Alternative Investment HQ September 13, 2013 Copyright © 2013 ORIX Corporation All rights reserved.
Slide 2: 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 3: Contents
Contents I. Trend in Segment Profits and Assets p. 3 II. History y of Overseas Expansion p p. 5 III. Major Partners p. 8 IV. Asia and Middle East Strategy p. 10 V. Examples by Country p. 11 VI. Summary p. 15 p Copyright © 2013 ORIX Corporation All rights reserved. 2
Slide 4: I. Segment Profits and Assets
I. Segment Profits and Assets （JPY Bn） Assets excluding Americas grew steadily, profits remained robust Breakdown of Segment Profits by Region Breakdown of Segment Assets by Region 70 1,400 Asia and Australia Greater China Other than Americas Americas Middle East and Europe Other 1,200 Americas 60
Slide 5: I. Segment Profits and Assets – Regional and Asset Type Basis
I. Segment Profits and Assets – Regional and Asset Type Basis – Breakdown by Regions (13.6） Asia and Australia Middle East and Europe Other “Equity Investment” mainly in ¥38.7bn ¥168.6bn South Korea (Mirae Asset Life Equity Americas Insurance, STX Energy, etc.) Investment ¥375.6bn China No large
Slide 6: II. History of Overseas Expansion
II. History of Overseas Expansion Expanded its global reach starting with Hong Kong in 1971, using knowhow developed in Japan “Not “N as ambitious bi i as to callll iit a globalization, l b li i b but rather h iit iis a way off eliminating barriers that exist in Japan” 34 Countries and Regions i
Slide 7: II. History of Overseas Expansion – Characteristics and Strengths
II. History of Overseas Expansion – Characteristics and Strengths – Established partner relations with leading local companies. Promoted localization of management, acquiring local customer base and strong brand recognition Leveraging g g business p platform cultivated over the yyears, each loca
Slide 8: II. History of Overseas Expansion – Peer Comparison
II. History of Overseas Expansion – Peer Comparison – Unrivaled network spreading to the Middle East region Maintained business base through consistent localization Comparison with Asian and Middle East Locations of Japanese Leasing Companies ORIX 20 countries and regions (4,743 employees) Bank
Slide 9: III. Major Partners
III. Major Partners Initially, partners were joint investors in the first leasing company in each country. Currently increasing the number of joint investors willing to take business risks together India Life Insurance Corporation of India Largest public insurance company in India UAE Al Hail Hold
Slide 10: III. Major Partners – Recent Examples
III. Major Partners – Recent Examples – Country/Name Description Partnership with ORIX Philippines Involved in banking -Shareholder in local Philippine M Metrobank b k Group G (2nd in the subsidiary Philippines), real -Jointly developing a complex of estate, power hotel, office, and residences with
Slide 11: IV. Asia and Middle East Strategy
IV. Asia and Middle East Strategy Shift the business of each local subsidiary from “Finance” to “Finance + Services” Embrace E b growth th off d domestic ti ddemand d iin each h country t Localization of Japan’s knowledge and knowhow (Maintenance Leasing and Environment and Energy) M&A in th
Slide 12: V. Examples by Country: Malaysia
V. Examples by Country: Malaysia Lim Beng Chor Managing Director & CEO Name, Established ORIX Leasing Malaysia Berhad (OLM), Established 1973, ORIX 100% Year, Shareholding Business Base and Locations: Head office + 14 branches, 672 employees p y Number of Employees Industry Position Leader in leasin
Slide 13: V. Examples by Country: Indonesia
V. Examples by Country: Indonesia Shuji Ohtake President, COO Name, Established PT. ORIX Indonesia Finance (ORIF), Established 1975, ORIX 85% Year, Shareholding Business Base and 11 locations locations, 530 employees Number of Employees One of the leading leasing companies. Many players including Ja
Slide 14: V. Examples by Country: Australia and New Zealand
V. Examples by Country: Australia and New Zealand John Carter Managing Director Name, Established ORIX Australia Corporation Limited (OACL), Established 1986, ORIX 100% Year, Shareholding Business Base and Number of Australia: 12 locations, New Zealand: 4 locations, 275 employees Employees Mid-size
Slide 15: V. Examples by Country: South Korea
V. Examples by Country: South Korea Sung-Yoon Chung President, COO Name, Established ORIX Capital Korea Corporation (OCK), Established 2004, ORIX 100% Year, Shareholding Business Base and 5 locations, 119 employees Number of Employees Market where manufacturer related captive leasing companies are s
Slide 16: V. Summary
V. Summary “Localization” “L li i ” andd “P “Partnership” hi ” are kkey ffeatures Shift from “Finance” to “Finance + Services” in each local subsidiary Embrace g growth in Asia through g active M&A and PE investment Copyright © 2013 ORIX Corporation All rights reserved. 15
Slide 17: Equity Investment Strategy in Japan and Overseas
Equity E it Investment I t t Strategy St t in Japan and Overseas September 13, 2013 Investment and Operation Headquarters Business Development and Investment Group/ Global Business Development p and Investment Group p Copyright © 2013 ORIX Corporation All rights reserved.
Slide 18: 1. Organizational Structure
1. Organizational Structure Business Development and Investment Group invests in Japanese companies (Comprised of 3 teams/34 members). Global Business Development and Investment Group (previously the Global Business Promotion Team) was transferred from Global Business and Alternative Investment
Slide 19: 2. Business Development and Investment Group - Investment Track Record
2. Business Development and Investment Group - Investment Track Record Investments were mainly rehabilitation transactions when we launched the operation. During the expansion phase, we focused on non-bid deals such as business succession as price range did not meet our standards due to increased
Slide 20: 3. Investment Strategy
3. Investment Strategy Targeting mainly top niche companies, we implement investment sourcing activities with different themes: “business succession” allowing non-bid based investment, “MBO” that focuses on under priced shares, and “subsidiary sales/carve-out” of large companies looking to concent
Slide 21: 4. Investment Portfolio
4. Investment Portfolio Kawachiya Net Protections Invested in February 2012. Invested in December 2012. Business Succession （from founder）. Large company selling its subsidiary (Sub-subsidiary of Olympus). Liquor Li wholesaler h l l (No.2 (N 2 iin T Tokyo k M Metropolitan t lit A Area)) E-co
Slide 22: 5. Value Up Strategy
5. Value Up Strategy Business management and support by creating unity with the investee through hands on management by dispatched ORIX employees. Professionals from relevant industries provide strategic support and make replacements on management if necessary. Expand operation of the investees
Slide 23: 6. Industry Environment
6. Industry Environment Domestic buy-out funds steadily increased in the start up phase, but following the Lehman Crisis in 2009, the number of funds and commitment amount decreased rapidly to a low level. The figures rebounded in 2012 when commitment amount reached 90bn yen for the first time in
Slide 24: 7. ORIX's Position
7. ORIX’s Position Flexibility Collaboration We make proprietary investments unlike other PE Expand sales platform by cooperating with ORIX’s Funds. No fixed limits on investment amounts or business units (Win-Win, since ORIX benefits from period Flexible in actions, period. actions handling full eq
Slide 25: 8. FY2013 Strategy
8. FY2013 Strategy Expansion and Diversification of Increase Corporate Value Investment Target Deepen industry-based strategy (Food, IT/Information Hands-on business management and support by Services, Healthcare) and consider increasing focus dispatched ORIX employees (Create sense of unity with in
Slide 26: 9. Global Business Development and Investment Group - Investment Track Record
9. Global Business Development and Investment Group - Investment Track Record Its predecessor “New Business Development Group” was established at the same time as Global Business and Alternative Investment HQ in January 2009. Its original mission was to set up new businesses overseas and support d
Slide 27: 10. Overseas Investment Theme
10. Overseas Investment Theme Leasing is the primary business in countries ORIX has already expanded into through its local subsidiary. Aim for discontinuous growth by promoting M&A in other financial businesses (banking, insurance, consumer finance as main target). In countries where we have ye
Slide 28: 11. Investment Portfolio
11. Investment Portfolio Mongolia Opportunities Fund TenGer Financial Group (Mongolia) (Mongolia) Invested in February 2013. Invested in September 2013. First private equity fund in Monglia（Established June 2011） Integrated financial group. Includes leasing and insurance Targets mid-size com
Slide 29: 12. Overseas Investment Policy
12. Overseas Investment Policy Domestic Business Asset Management Leasing Investment Energy and Banking Lending Ship Life Loan Banking Environment Aircraft Investment Automobile Real Estate Insurance Servicing Overseas 1970~ 1980~ 1990~ 2000~ 2010~ Expansion Hong Kong Sri Lanka Taiwan Saudi Arabia V
Slide 30: 13. Overseas Investment Strategy
13. Overseas Investment Strategy Expand Overseas Financial Business Support Growth of Investees Expand from overseas business centered on leasing to other Support expansion of investee companies’ business fields by financial areas (Banking, (Banking life insurance insurance, consumer finance finance
Slide 31: 14. Target Regions for Investment
14. Target Regions for Investment Focus on Asian Emerging Markets, the Middle East, and Africa Entrance at Early Stage of Economic Growth (Before the Launch of Direct Flight from Japan) Central Turkey Asia North Africa The Middle East M k Mekong Delta D lt Sub-Saharan ASEAN Af i Africa Asian Emerg