Orix Corporation · TSE:8591

Orix — FY2006 Earnings Presentation

38 slides from Orix's earnings presentation, May 15, 2006

  1. Slide 1: Fiscal 2006 Annual Results Conference Call

    Fiscal 2006 Annual Results Conference Call 2006.5.15 Copyright © 2006ORIX Corporation All rights reserved. 0

  2. Slide 2: Consolidated Financial Results for Three Months and Fiscal Year Ended March 31, 2006

    ORIX Corporation (TSE: 8591; NYSE: IX) Conference Call Consolidated Financial Results for the Three-Months and Fiscal Year Ended March 31, 2006 (May 15, 2006) Shunsuke Takeda, Vice Chairman & CFO Tadao Tsuya, Executive Officer & Head of the Accounting Department Raymond Spencer, Senior Manager & IR

  3. Slide 3: Disclaimer

    Disclaimer These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materi

  4. Slide 4: Part 1: Outline

    Part 1: Outline 1. Overview of Financial Results 2. Strengthening Foundation for Medium- and Long-Term Growth 3. Direction of Business Development 4. Summary Copyright © 2006 ORIX Corporation. All rights reserved. 3

  5. Slide 5: Overview of Financial Results: Main Indicators

    1. Overview of Financial Results -1- Main Indicators –Large Expansion in Growth of Financial Results Over Last Three Years– Three- Year CAGR ( Billions of yen) 2006.3 since 2004.3 Net Income 166.4 76% Total Assets 7,242.5 13% Shareholders’ Shareholders Equity f 953.6 30% * Market Capitalization 3,29

  6. Slide 6: Overview of Financial Results: Segment Profits

    1. Overview of Financial Results -2- Segment Profits* –All nine segments have become significant contributors to profits– (Billions of yen) 01.3 04.3 05.3 06.3 Profits Share Profits Share Profits Share Profits Share Segments in Japan Corporate Financial Services 35.8 51% 27.2 23% 43.8 25% 48.7 18% A

  7. Slide 7: Strengthening Foundation for Medium- and Long-Term Growth

    2. Strengthening Foundation for Medium- and Long-Term Growth –Necessary to Strengthen Foundation from Three Perspectives– Continuation of Medium-and Long-Term Growth Strengthening Foundation Further Develop an Establish a Further Improve Workplace Operating Platform Our Financial Environment that is

  8. Slide 8: Direction of Business Development: Economic Environment in Japan

    -1- Economic 3. Direction of Business Development Environment in Japan –Various Business Opportunities in an Improving Economic Environment– Japanese Economy is Steadily Recovering New Growth Opportunities and 1. Spreading from Tokyo to Competition in the rest of Japan the Financial 2. Moving toward

  9. Slide 9: Corporate Financial Services Segment

    -2- Corporate Financial 3. Direction of Business Development Services Segment –We Always Aim to be the Provider of New Financial Services – Segment Profits Main Development of Services (Billions of yen) Customer Needs Services 48.7 43.8 Capital Expenditures Leases 27.2 Real Estate Development, Capit

  10. Slide 10: Automobile Operations Segment

    -3- Automobile 3. Direction of Business Development Operations Segment –Aiming to Increase Number of Vehicles Though Expansion of Services– Segment Profits Vehicles under Main Development of Services Management Customer Needs Services Streamlining Vehicles Management (Billions of yen) Thousands Oper

  11. Slide 11: Real Estate-Related Finance and Real Estate Segments

    -4- Real Estate-Related Finance 3. Direction of Business Development and Real Estate Segments –Expansion of Wide Range of Real Estate-Related Business Activities– Segment Profits Development of Real Estate Segment Present Businesses *Scheduled to begin operations in July 2006 Devel- Invest- Rental M

  12. Slide 12: The Americas, Asia, Oceania and Europe Segments

    -5- The Americas, Asia, Oceania 3. Direction of Business Development and Europe Segments –Expansion of Business Activities Utilizing a Network that Expends Across 22 Countries and Regions Outside of Japan– Segment Profits Overseas Locations *Europe includes 11 locations in Kazakhstan The Americas 17

  13. Slide 13: Summary: Flexible Management Aiming for Growth

    4. Summary –Flexible Management Aiming for Medium- and Long-Term Growth– Trend in Net Profits (Billions of yen) 1,800 180 1,600 160 140 1,400 Past Three Years 120 1,200 100 1,000 80 800 B ub ble 600 60 Post my o 40 400 y Econ ub b le E conom 20 High Growth 200 to B 0 64 66 68 70 72 74 76 78 80 82 84

  14. Slide 14: Part 2: Outline

    Part 2: Outline 1. Overview of Fiscal 2006 Financial Results 2. Fiscal 2007 Forecast 3. Supplemental Information Copyright © 2006 ORIX Corporation. All rights reserved. 13

  15. Slide 15: Overview of Fiscal 2006 Financial Results: Highlights

    1. Overview of Fiscal 2006 Financial Results: 1. Highlights 1. Growth of Revenues from Loans and Leases in Japan and Overseas 2. Larger Net Gains on Investment Securities and Gains on Sales of Real Estate 3. Lower Provisions and Write-Downs of Long- Lived Assets Copyright © 2006 ORIX Corporation. Al

  16. Slide 16: Profits: Net Income Up 82% Year on Year

    1. Overview of Fiscal 2006 Financial Results: 2. Profits -Net Income Up 82% Year on Year- (Billions of yen) IBIT* (YoY Change) Net Income (YoY Change) 300 200 252.2 166.4 250 Up 63% 150 Up 82% 200 155.1 150 100 91.5 100 50 50 0 0 2005.3 2006.3 2005.3 2006.3 *IBIT refers to “income before discontinue

  17. Slide 17: Segment Profits: All Nine Segments Achieved Higher Profits

    1. Overview of Fiscal 2006 Financial Results: 3. Segment Profits -All Nine Segments Achieved Higher Profits- (Billions of yen) Fiscal 2006 Segment Profits* Number in brackets indicate YoY Change Corporate Financial Services 48.7 (4.8) Stable Profit Rental Operations 9.9 (0.5) Segments Life Insurance

  18. Slide 18: Fiscal 2007 Forecast

    2. Fiscal 2007 Forecast: 1. Forecasts 1,100.0 Up 16% Revenue Up 2% (Billions of yen) 928.7 947.8 177.0 166.4 Up 6% Up 82% Net Income 91.5 2005.3 2006.3 2007.3 Forecast *The above forecasts have been made based upon the available information obtained on the date of this document. Actual results may d

  19. Slide 19: Fiscal 2007 Forecast: Premise for Forecasts

    2. Fiscal 2007 Forecast: 2. Premise for Forecasts 1. Overall Business Environment <Japan> Moderate increase in interest rates in backdrop of continuation of economic recovery <U.S.> Steady despite concerns regarding the trend in crude oil prices <Asia> Expected to continue to expand 2. Business Envi

  20. Slide 20: Supplemental Information

    3. Supplemental Information Copyright © 2006ORIX Corporation All rights reserved. 19

  21. Slide 21: Trend in Segment Financial Results

    Trend in Segment Financial Results Copyright © 2006 ORIX Corporation. All rights reserved. 20

  22. Slide 22: Corporate Financial Services Segment

    Corporate Financial Services Segment Segment Outline Financial Results Leases, loans, ROA = Segment Profit/Average Segment Assets Profit Drivers and the sale of ROA (%) 3.00 3.12 financial 1.85 „ Expansion of products revenues from corporate loans „ Increase in Up 11% revenues from Main Companies 48

  23. Slide 23: Rental Operations Segment

    Rental Operations Segment Segment Outline Financial Results Precision ROA = Segment Profit/Average Segment Assets measuring 8.19 Profit Drivers 7.89 ROA (%) equipment rentals 6.56 „ Increase in and IT-related revenues from equipment rentals direct financing and leases leases „ Net gains on Segment P

  24. Slide 24: Life Insurance Segment

    Life Insurance Segment Segment Outline Financial Results ROA = Segment Profit/Average Segment Assets Life insurance Profit Drivers ROA (%) sales 2.50 „ Higher life 0.93 1.26 insurance Main Company related investment „ ORIX Life Segment Profits (Billions of yen) income Insurance „ Lower insurance pay

  25. Slide 25: Asia, Oceania and Europe Segment

    Asia, Oceania and Europe Segment Segment Outline Financial Results Leases, loans, ROA = Segment Profit/Average Segment Assets Profit Drivers automobile leases, 6.02 ROA (%) 4.57 „ Steady ship finance, and aircraft leases 3.38 performance of revenues from automobile and machine equipment Main Compani

  26. Slide 26: Automobile Operations Segment

    Automobile Operations Segment Segment Outline Financial Results ROA = Segment Profit/Average Segment Assets Automobile Profit Drivers ROA (%) leasing and automobile 4.85 5.55 „ Expansion of 4.46 corporate rentals automobile Main Company leases Segment Profits (Billions of yen) „ ORIX Auto Up 26% 26.

  27. Slide 27: Real Estate-Related Finance Segment

    Real Estate-Related Finance Segment Segment Outline Financial Results Corporate real ROA = Segment Profit/Average Segment Assets Profit Drivers estate-related ROA (%) 3.06 „ Expansion of finance, housing 1.55 revenues from 1.27 loans, securitization, corporate loans, and loan servicing including non

  28. Slide 28: Real Estate Segment

    Real Estate Segment Segment Outline Financial Results Condominium ROA = Segment Profit/Average Segment Assets development, Profit Drivers ROA (%) office building 5.40 4.84 „ Contribution development, sale 3.48 from gains on and rental, hotel operation, and sales of real integrated estate under facil

  29. Slide 29: Other Segment

    Other Segment Segment Outline Financial Results Card loans, venture ROA = Segment Profit/Average Segment Assets Profit Drivers capital, securities 7.19 ROA (%) brokerage, and „ Increase in revenues principal 4.65 from corporate rehabilitation investments 2.52 business „ Increase in revenues from sec

  30. Slide 30: The Americas Segment

    The Americas Segment Segment Outline Financial Results Corporate finance, ROA = Segment Profit/Average Segment Assets Profit Drivers investment 8.22 ROA (%) banking, leases, „ Increase in and real estate- revenues from 3.57 interest on loans to related operations corporate 1.39 customers „ Increase

  31. Slide 31: Additional Financial Results

    Additional Financial Results Supplemental Information Copyright © 2006 ORIX Corporation. All rights reserved. 30

  32. Slide 32: Summary of Fiscal 2006 Results

    3. Supplemental Information: Summary of Fiscal 2006 Results (Millions of yen) 2004.4 2005.3 2005.4 2006.3 YoY Change YoY Change Revenues 928,703 947,824 19,121 Up 2.1% Income before Income Taxes (IBIT)* 155,103 252,150 97,047 Up 62.6% Net Income 91,496 166,388 74,892 Up 81.9% Basic Earnings Per Shar

  33. Slide 33: Revenues & Expenses

    3. Supplemental Information: Revenues & Expenses Revenues Revenues (Quarterly Trend) (Billions of yen) (Billions of yen) 928.7 947.8 285.1 268.0 1,000 300 216.7 233.9 229.2 800 Up 2% 200 600 400 100 200 0 0 04.4-05.3 05.4-06.3 4Q 1Q 2Q 3Q 4Q 05.1-3 05.4-6 05.7-9 05.10-12 06.1-3 Expenses Expenses (Qu

  34. Slide 34: IBIT & Net Income

    3. Supplemental Information: IBIT & Net Income IBIT IBIT (Quarterly Trend) (Billions of yen) (Billions of yen) Up 63% 300 252.2 100 74.8 58.6 59.9 58.8 200 155.1 50 41.2 100 0 0 04.4-05.3 05.4-06.3 4Q 1Q 2Q 3Q 4Q 05.1-3 05.4-6 05.7-9 05.10-12 06.1-3 Net Income (Billions of yen) (Billions of yen) Net

  35. Slide 35: Assets, Debt & Shareholders' Equity

    3. Supplemental Information: Assets, Debt & Shareholders’ Equity (Billions of yen) Operating Assets (Billions of yen) Total Assets 8,000 8,000 7,242.5 5,858.3 6,069.0 6,000 5,129.1 6,000 Up 19% 4,000 4,000 Up 14% 2,000 2,000 0 0 2005.3 2006.3 2005.3 2005.3 2006.3 2006.3 Short- and Long-Term Debt & D

  36. Slide 36: Key Financial Data

    3. Supplemental Information: Key Financial Data (Billions of yen) Net Income & ROE (%) (Billions of yen) Total Assets & ROA (%) 200 25.0 8,000 Total Assets (lhs) 3.0 Net Income (lhs) 7,242.5 166.4 ROA (rhs) ROE (rhs) 6,350.2 2.50 20.0 5,931.1 6,069.0 150 19.8 6,000 5,625.0 2.0 14.2 15.0 100 91.5 4,0

  37. Slide 37: Segment Profits

    3. Supplemental Information: Segment Profits Business Expansion Improved Asset Quality Gains on Sales Stable Profit • Increase in revenues from • Lower provisions • Contribution from securitization of leases in the Corporate Financial loans and leases in Corporate Segments Financial Services segment

  38. Slide 38: 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/index_e.htm IR Website: URL: http://www.orix.co.jp/grp/ir_e/ir_index.htm Financial Reports: URL: http://www.orix.co.

ORIX — FY2006 Earnings Presentation on 6ix