Orix Corporation · TSE:8591
Orix — Investor Presentation (November 2015)
31 slides from Orix's investor presentation, Nov 30, 2015
Slide 1: Future Growth Strategy of ORIX Group's Auto-Related Business
F t Future Growth G th Strategy St t off ORIX Group’s Auto-Related Auto Related Business Katsunobu K b Kamei K i President of ORIX Auto Corporation Responsible for Corporate Financial Services and Maintenance Leasing Segment 30 November,, 2015 Copyright © 2015 ORIX Auto Corporation All rights reserv
Slide 2: Contents
Contents Ⅰ. Business Overview Ⅱ. Business Characteristics Ⅲ Growth Ⅲ. G th Strategy St t Ⅳ Summary Ⅳ. Copyright © 2015 ORIX Auto Corporation All rights reserved. 1
Slide 3: Ⅰ. Business Overview
Ⅰ Business Overview Ⅰ. Copyright © 2015 ORIX Auto Corporation All rights reserved. 2
Slide 4: Business Overview – Company History
Ⅰ. Business Overview ―Company History― Jun 1973 Orient Auto Lease Co. was established （name changed to ORIX Auto Lease Co. in April 1989) Feb 1985 Commenced car-rental business Feb 1997 Commenced fuel card (AMS Card) business Oct 1999 X Rent-A-Car acquired by ORIX Group Jul 2001 S k LLease acquired
Slide 5: Business Overview – Presence in the ORIX Group
Ⅰ. Business Overview ―Presence in the ORIX Group― ORIX Auto is grouped under Maintenance Leasing segment Segment profits for FY2015.3 at 40.4bn yen, accounted for 12% of total segment profits Corporate Financial Services 7% Lending, Leasing, fee businesses Overseas Leasing, Lending, Investment in
Slide 6: Business Overview – Segment Assets and ROA
Ⅰ. Business Overview ―Segment Assets and ROA― Pursue segment assets growth and cost reduction, and maintain high ROA Segment Assets and ROA (JPY Bn) （Maintenance Lease Segment) 800 4.5% 5.0% 700 4.1% 4.1% 4.0% 4.5% 3.9% 4.0% 600 3.1% 3.5% 500 2.6% 3.0% 2.4% 400 2.5% ORIX 2.0% 300 Auto 1.5% 200 1 0
Slide 7: Business Overview – Segment Profits
Ⅰ. Business Overview ―Segment Profits― Despite impacts from Lehman Crisis and Great East Japan Earthquake, stable profit growth was achieved through business diversification Segment Profits (JPY Bn) （Maintenance Lease Segment) 50 40 30 (6 months) 20 ORIX 10 Auto 0 2009/3 2010/3 2011/3 2012/3 2013/
Slide 8: Ⅱ. Business Characteristics
Ⅱ Business Characteristics Ⅱ. Copyright © 2015 ORIX Auto Corporation All rights reserved. 7
Slide 9: Business Characteristics
Ⅱ. Business Characteristics One stop solution provider for customers’ diverse car usage and needs Usage time Market Share Market Share Long No.1 No.2 Car Rental Auto Lease Fleet size： 58,791 Fleet size： 1.2 million Lease Car Rental Usage Frequency Light User Heavy User Car Sharing Market Share No.
Slide 10: Business Characteristics – Auto Lease
Ⅱ. Business Characteristics ―Auto Lease― Leading company in the auto lease industry No.1 player with the largest fleet under management Sales Locations： 50 Fleet Size Size： 1,212,000 Repair Shops under Contract 9,000+ Lease Agents： 700+ Used Car Auction Sites: 4 ( (Operated db ） by ORIX Auto） Bu
Slide 11: Business Characteristics – Car Rental (Rent-A-Car)
Ⅱ. Business Characteristics ―Car Rental (Rent-A-Car)― Largest fleet size and no. of locations among non-auto manufacturer affiliate leasing companies Diverse vehicle lineup from passenger cars to commercial vehicles such as vans and trucks Location： 1,008 （with 60 locations offers truck rentals）
Slide 12: Business Characteristics – Car Sharing
Ⅱ. Business Characteristics ―Car Sharing― As the pioneer of this business in Japan, ORIX Auto has developed over 1,300 stations centered in major metropolitan areas, with over 2,000 cars for sharing No. of Stations: 1,365 Fleet Size： 2,209 , No. of Members： 139,092 Business Areas： 【Tokyo Area】 Tok
Slide 13: Business Characteristics – Value-Added Service Menu
Ⅱ. Business Characteristics ―Value-Added Service Menu― Providing value-added services based on high level of expertise Fleet Management g BPO Telematics Service Risk Consultingg Service WEB Info. Service Fuel Card (AMS) ETC Card Accident/Breakdown Support Used Car Buy/Sell Service Copyright © 2015
Slide 14: Business Characteristics – Fuel Card/ETC Card
Ⅱ. Business Characteristics ― Fuel Card/ETC Card ― We provide services that enable a control system that not only enhance work/cost efficiency but also contributes to better compliance Fuel Card “AMS Card” ETC Card “ORIX ETC Card” No. of cards issued: No. of cards issued: 582,000 363,000 • Accepte
Slide 15: Business Characteristics – Earning Trend
Ⅱ. Business Characteristics ―Earning Trend― Further strengthen “Finance” and “Automobile” related expertise, expand services income and the overall earning scale 黎明期 節税 ORIX AAuto 節 t EEarning i B Breakdown kd and d TTrend d 資金調達 Lease Revenues SServices i IIncome (Revenues relating to peripheral
Slide 16: Ⅲ. Growth Strategy
Ⅲ Growth Strategy Ⅲ. Copyright © 2015 ORIX Auto Corporation All rights reserved. 15
Slide 17: Growth Strategy – Core Competence and Future Direction
Ⅲ. Growth Strategy ―Core Competence and Future Direc on― Capitalize ORIX Auto’s core competence to further expand operation scale and maintain existing profitability Core Competence of ORIX Auto Top Top-class class market share in the industry ・ Optimization of asset growth and costs Line up p
Slide 18: Growth Strategy – Market
Ⅲ. Growth Strategy ―Market― Approach customers already engaged in leasing transactions with car-rental, car- sharing and other value added services services/products Focus on small client, non-fleet, and retail customer segments where potential of transaction expansion is large Large Client Mid-
Slide 19: Customer Needs and Business Expansion
Ⅲ. Growth Strategy－Customer Needs and Business Expansion － In response to diversifying customers’ needs, we have been providing various highly specialized services from peripheral services to fleet management Mid-Large Mid Large Clients High Mid-Size Clients BPO of Fleet Management Small Clients
Slide 20: Growth Strategy – Total Services
Ⅲ. Growth Strategy ―Total Services― We differentiate from our rivals and provide the best solutions to our customers’ needs, covering the entire vehicle life cycle from vehicle purchase to maintenance and used- car sale Usage Lease Vehicle Car rental Maintenance Car sharing purchase management Opt
Slide 21: Growth Strategy – e-Telematics (1)
Ⅲ. Growth Strategy ―e-Telema cs(1)― Enables customers to minimize vehicles emission and promote safer driving by equipping vehicles with devices for data communication, GPS and internet(IoT) connections No. of vehicles installed with e-Telemactics increased from 60,000 units (2013/3) to 121,000
Slide 22: Growth Strategy – e-Telematics (2)
Ⅲ. Growth Strategy ―e-Telema cs(2)― e-Telematics enhances our proposal to improve customers’ drivers’ habits, improve their driving fuel efficiency and reduce their CO2 emission, and ultimately contribute to a decrease in road accidents Environmental Impact of e-Telematics Safer Driving Effects of
Slide 23: Growth Strategy – e-Telematics (3)
Ⅲ. Growth Strategy ―e-Telematics(3)― “e-Telematics” and “e-Telematics PRO” received Grand Prize (Corporate Division) at the 17th Green Purchasing Award on 4 November 2015 【 The following points were made in relation to the award 】 e-Telematics provides concrete data that enables companies to imp
Slide 24: Car Leasing for Retail Customers
Ⅲ. Growth Strategy ―Car Leasing for Retail Customers― Strengthen our car lease offering to expand our presence in the retail market Efficient market development via both Internet and face-to-face sales activities Products Product offering that accommodates customers’ diverse needs in both new
Slide 25: Growth Strategy – Ageing Population/Depopulation/BCP
Ⅲ. Growth Strategy ―Ageing Popula on/Depopula on/BCP― Capitalizing on its know-how in vehicle procurement and extensive industry network, ORIX Auto develops special purpose vehicles in its product offering Background Greater needs for special p purpose p p vehicles • Ageing population • Depopula
Slide 26: Growth Strategy – Overseas Market Development
Ⅲ. Growth Strategy ―Overseas Market Development― ORIX Group conducts auto-lease business in 19 countries/regions worldwide With advanced fleet management knowhow accumulated in Japan, ORIX aims to further expand its auto-related business abroad Auto-repair in India Auto-maintenance in Malaysia y
Slide 27: Growth Strategy – Overseas Market Development
Ⅲ. Growth Strategy ―Overseas Market Development ― ORIX’s Auto-Lease Business ranks no. 3 in the world and no.1(estimate) in Asia Pacific in terms of the scale of the fleet under its management Asia is expected p to be an important p driver for the business’ future ggrowth Global Auto-Lease Compa
Slide 28: Growth Strategy – Overseas Market Development
Ⅲ. Growth Strategy ―Overseas Market Development ― To establish business model with high quality and high profitability overseas, we will provide technical support to our overseas group companies Strengthen Platform Strengthen Product Development (E.g.) Act Plan Vehicle Pricing competitiveness Adju
Slide 29: IV. Summary
IV. Summary ORIX Auto is group under the Maintenance Leasing segment which accounts for 12% of the Group Group’ss total segment profits and maintains a high ROA at around 4% 4%. This segment will continue to contribute to the Group’s stable growth and development in the future Enhance specializa
Slide 30: 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 31: 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/ If you would like to be included on our e-mail list for major