Orix Corporation · TSE:8591

Orix — 1H FY2016.3 Earnings Presentation

44 slides from Orix's earnings presentation, Oct 30, 2015

1. Slide 1: Second Quarter Consolidated Financial Results

   ORIX Corporation (TSE: 8591; NYSE: IX) Second Quarter Consolidated Financial Results For the Six-Month Period Ended September 30, 2015 October 30, 2015 Makoto Inoue President & CEO Kazuo Kojima Deputy President & CFO Copyright © 2015 ORIX Corporation All rights reserved.

2. Slide 2: Overview (1)

   Overview（1）  161.3 bn yen in net income, up 14% YoY  Achieved annualized ROE of 14.7% Net Income* and ROE (JPY Bn) 14.3% 14.7% 180 160 140 9.5% 120 100 80 60 80.4 141.3 161.3 40 20 0 14.3 1H 15.3 1H 16.3 1H Net Income ROE ((annualized)) *Net Income refers to Net Income Attributable to ORIX Corpora

3. Slide 3: Overview (2)

   Overview（2）  Segment profits up 21% YoY  Profits increase achieved in all segments except Retail segment  Significant profits growth contribution from Overseas Business, Investment and Operation, Real Estate, and Corporate Financial Services segments Segment Profits (JPY Bn) 250 200 O Overseas B

4. Slide 4: Overview (3)

   Overview（3）  Segment assets decreased 4% compared to the end of FY2015.3  In Retail segment, HLIKK assets (in run-off) decreased  In Real Estate segment, assets sale continued Segment Assets and ROA (JPY Tn) 10 3.4% 3.6% 3.8% 3.3% 2.9% 8 2.4% 2.8% 6 2.3% Overseas Business Retail 1.8% 4 Investment

5. Slide 5: Overview (4)

   Overview（4）  Steady growth in profits and assets from existing operation  Such growth was contributed primarily by fee incomes in Corporate Financial Services segment, segment Robeco, Robeco and new investees  Similar level of capital gains compared to FY2015.3 1H YoY Changes in Pretax Profits YT

6. Slide 6: Segment Performance (1) Corporate Financial Services

   Segment Performance（1） （Corporate Financial Services）  Segment profits increased 71% YoY to 21.6bn yen  In addition to Yayoi’s contribution, fee income business remains in good shape  Earning E i growth th ffrom non-capital it l iintensive t i b businesses i h helped l d tto iimprove segment ROA

7. Slide 7: Segment Performance (2) Maintenance Leasing

   Segment Performance（2） （Maintenance Leasing）  Segment profits increased 7% YoY to 23.1bn yen  Maintenance and other value-added services continued to contribute profits steadily Segment Revenues/Profits Segment Assets/ROA （JPY Bn） （JPY Bn） 160 23.1 800 5.0% 4.5% 4.5% 21.5 4.3% 20.5 4.5% 4.0% 4.0%

8. Slide 8: Segment Performance (3) Real Estate

   Segment Performance（3） （Real Estate）  Segment profits increased by 2.1 times YoY to 33.7bn yen  Sales of rental property continued to generate capital gains  Services income from facility operation remained strong （JPY Bn） Segment Revenues/Profits Segment Assets/ROA （JPY Bn） 120 40 1,200 5.6% 6.0

9. Slide 9: Segment Performance (4) Investment and Operation

   Segment Performance（4） （Investment and Operation）  Segment profits increased by 2.5 times YoY to 36.5 bn yen  Gains on sales of investments were recognized in Q1  Gradual expansion of assets and profits in environment and energy related business Segment Revenues/Profits Segment Assets/ROA （JPY Bn

10. Slide 10: Segment Performance (5) Retail

    Segment Performance（5） （Retail）  Segment profits decreased 58% YoY to 32.1 bn yen  Without considering gains on sales and valuation gains, profit growth YoY primarily l contributed b db by llife f insurance b business Segment Revenues/Profits Segment Assets/ROA Life Insurance Premiums and （ （JPY B

11. Slide 11: Segment Performance (6) Overseas Business

    Segment Performance（6） （Overseas Business）  Segment profits increased 59% YoY to 97.9 bn yen  In line with the IPO of Houlihan Lokey, capital gains and valuation gains were recorded  Investment business in Asia and asset management business of Robeco contributed to profit growth significantly Seg

12. Slide 12: Mid-Term Strategic Direction

    Mid-Term Strategic Direction  Good progress made so far towards net income target 300bn yen by FY2018.3  For FY2016.3 2H, new investments will be the main focus  Expand new investments while turning over existing business portfolio FY2016.3 1H Progress Highlights (Key Areas, Existing Operations,

13. Slide 13: Shareholder Return

    Shareholder Return  Year end dividend forecast at 23 yen per share  Full year dividend forecast at 45 yen per share, a 25% increase YoY  Dividend payout ratio target for FY2016.3 at 23%  Target stable dividend growth along with sustainable profit growth Dividend per Share* and Payout Ratio （JPY

14. Slide 14: Summary

    Summary During 1H, amid favorable market condition, capital gains and valuation gains were recorded 1H net income achieved at 161.3bn yen, up 14% YoY In 2H, focus will be placed on new investments in key areas Full year dividend forecasted at 45 yen per share, a 25% increase YoY, with emphasis p pla

15. Slide 15: Appendix

    Appendix pp Copyright © 2015 ORIX 14 Corporation All rights reserved. 14

16. Slide 16: About ORIX: Sustainable Growth

    About ORIX Sustainable Growth  Maintaining profitable for the past 50 years and achieving sustainable profit growth Net Income Attributable to ORIX Corporation Shareholders FY2015.3 Record Net Income JPY Bn FY2009 3 FY2009.3 250 Collapse of Lehman Brothers 200 FY2002.3 Bursting of the IT Bubble FY1

17. Slide 17: About ORIX: Business Expertise and Group-Wide Capability

    About ORIX Business Expertise and Group-Wide Capability ORIX evolved by advancing into neighboring areas while increasing its finance and asset expertise Credit Screening and Banking Asset Management Finance Capability Life Insurance Investment Lending Principal investment Business turnaround Co

18. Slide 18: About ORIX: Assets by Segment

    About ORIX Assets by Segment  Maximizing core competencies of each segment while creating group synergy Corporate Financial Services Lending, Leasing, fee businesses Overseas Business 12% 25% Leasing, Lending, Investment 8% Maintenance Leasing in bonds, Investment banking, Asset management, g , Seg

19. Slide 19: About ORIX: Extensive Overseas Network

    About ORIX Extensive Overseas Network  Expanded its global reach starting with Hong Kong in 1971, using knowhow developed in Japan 36 Countries and Regions worldwide (As of 2015.9.30) 1971 Hong Kong 1972 Singapore 1994 Oman 1973 Malaysia 1995 Poland Bussiness Networkk 1975 Indonesia 1997 Egypt 1981

20. Slide 20: Appendix(1) Performance Overview

    Appendix(1) Performance Overview （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H (YoY) Total Revenues 1,375.3 2,174.3 590.0 955.6 1,170.2 122% Net Income *1 187.4 234.9 80.4 141.3 161.3 114% Segment g Assets 7,267.8 9,170.2 6,748.8 9,118.9 8,766.0 96% Total Assets 9,067.0 11,443.6 8,430.0 11,2

21. Slide 21: Appendix(2) Profits by Segment

    Appendix(2) Profits by Segment （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H (YoY) Corporate Financial Services 24.9 25.5 11.4 12.6 21.6 171% Maintenance Leasing 37.1 40.4 20.5 21.5 23.1 107% Real Estate 18.0 3.5 8.8 15.8 33.7 214% Investment and Operation 95.8 42.4 22.2 14.5 36.5 251% Retai

22. Slide 22: Appendix(3) Assets by Segment

    Appendix(3) Assets by Segment （JPY Bn） Change 14.3 15.3 13.9 14.9 15.9 (YoY) Corporate Financial Services 992.1 1,132.5 960.7 983.6 1,068.5 109% Maintenance Leasing 622.0 662.9 569.1 656.1 699.3 107% Real Estate 962 4 962.4 835 4 835.4 1 045 5 1,045.5 885 2 885.2 753 9 753.9 85% Investment and Opera

23. Slide 23: Appendix(4) Income Statement Data

    Appendix(4) Income Statement Data （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H (YoY) Finance revenues Fi 191.7 191 7 186.9 186 9 99.5 99 5 91.2 91 2 101.2 101 2 111% Gains on investment securities and dividends 27.2 56.4 15.3 31.3 31.3 100% Operating leases 114.0 124.9 54.8 64.1 68.9 107% L

24. Slide 24: Appendix(5) Funding

    Appendix(5) Funding （JPY Bn） Change Funding 14.3 15.3 13.9 14.9 15.9 (YoY) CP 101.0 89.6 100.0 163.2 70.1 -93.1 Borrowings from Financial Institutions 2,631.4 2,882.6 2,458.4 2,685.4 2,875.3 189.9 Bonds / MTN 1,174.8 1,153.9 1,200.8 1,112.0 1,088.5 -23.5 Deposits 1,206.4 1,287.4 1,109.6 1,218.2 1,33

25. Slide 25: Appendix(6) Corporate Financial Services

    Appendix(6) Corporate Financial Services （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H ( (YoY) ) Finance revenues 37.2 35.6 18.7 18.1 16.8 93% Operating leases 25.6 24.5 12.4 12.2 12.4 102% Services income 14.9 22.0 6.3 9.2 17.4 189% Gains on investment securities and 1.1 3.4 0.6 1.3 6.1 458

26. Slide 26: Appendix(7) Maintenance Leasing

    Appendix(7) Maintenance Leasing （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H (YoY) Finance revenues 9.5 11.1 4.6 5.1 6.3 122% Operating leases 177.1 185.7 88.6 93.9 94.4 101% Services income 60.3 62.5 29.8 30.6 33.2 108% Segment Revenues 251.3 263.5 125.2 131.7 135.9 103% Segment Expenses 2

27. Slide 27: Appendix(8) Real Estate (1)

    Appendix(8) Real Estate (1) （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H (YoY) Finance revenues 6.1 4.1 3.8 2.2 5.5 244% Operating leases 66.6 63.8 32.2 34.4 36.7 107% Gains on Rental Property Sales 13 8 13.8 14 9 14.9 38 3.8 89 8.9 13 7 13.7 154% Services income 101.8 104.1 52.6 52.6 57.5

28. Slide 28: Appendix(9) Real Estate (2)

    Appendix(9) Real Estate (2) ■Breakdown of Real Estate Segment Assets （JPY Bn） Change g 14.3 15.3 13.9 14.9 15.9 (YoY) Rental Property 665.8 566.9 718.6 600.9 510.1 85% Under Lease 536.9 471.5 595.4 498.7 416.8 84% Under Development 128.9 95.4 123.2 102.2 93.3 91% Condo Assets 31.1 16.5 43.3 24.0 8.6

29. Slide 29: Appendix(10) Investment and Operation

    Appendix(10) Investment and Operation （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H (Y Y) (YoY) Finance revenues 18.4 15.7 9.9 8.3 6.5 78% Gains on investment securities and dividends 9.7 9.3 6.6 4.6 9.7 211% Sales of ggoods and real estate 120.6 371.4 32.4 119.1 338.3 284% Services income 8

30. Slide 30: Appendix(11) Retail

    Appendix(11) Retail （JPY Bn） Change g FY14 3 FY14.3 FY15 3 FY15.3 14 3 1H 14.3 15 3 1H 15.3 16 3 1H 16.3 (YoY) Finance revenues 50.4 52.5 25.1 26.0 27.2 104% Life insurance premiums and 155.8 352.5 75.9 138.0 71.2 52% related investment income Services income and other 5.4 20.9 2.5 18.0 4.1 23% Segm

31. Slide 31: Appendix(12) Overseas Business (1)

    Appendix(12) Overseas Business (1) （JPY Bn） Change FY14.3 FY15.3 14.3 1H 15.3 1H 16.3 1H (YoY) Finance revenues 57.3 63.3 29.3 29.2 36.2 124% Gain on investment securities and dividends 15.8 30.5 8.6 9.8 15.7 160% p Operating g leases 76.6 82.1 38.7 38.8 44.0 113% Services income 228.8 321.5 73.5 14

32. Slide 32: Appendix(13) Overseas Business (2)

    Appendix(13) Overseas Business (2) ■Overseas Business segment assets breakdown （JPY Bn） Change By Region 14.3 15.3 13.9 14.9 15.9 (YoY) Americas 518.1 776.2 436.7 697.4 733.2 105% Asia / Australia 655.6 591.5 507.9 590.9 551.7 93% Greater China 196 6 196.6 249 2 249.2 187 3 187.3 225 5 225.5 253 3 2

33. Slide 33: Appendix(14) Reconciliation Table of Non-GAAP Financial Measurement

    Appendix(14) 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 total assets and long-term liabilities excluding liabilities in line with securitized transact

34. Slide 34: Appendix(15) Reconciliation Table of Non-GAAP Financial Measurement

    Appendix(15) Reconciliation Table of Non-GAAP Financial Measurement （JPY Bn） Key Ratio 14.3 15.3 13.9 14.9 15.9 Total Assets （a） 9,067.0 11,443.6 8,430.0 11,209.5 11,080.6 Deduct: Payables under Securitized Leases, Leases Loan Receivables and 253.8 291.6 360.8 237.3 337.3 Investment in Securities Ad

35. Slide 35: Reference Data

    Reference Data Copyright © 2015 ORIX Corporation All rights reserved. 34

36. Slide 36: Macro Economic Indicators

    Macro Economic Indicators National CPI (Ex Fresh Food) Trends in Machinery Orders (YoY Change) JPY Tn % Change 3.5 7.0 6.0 3.0 5.0 2.5 4.0 3.0 20 2.0 2.0 1.5 1.0 0.0 1.0 -1.0 0.5 -2.0 -3.0 0.0 11.9 12.9 13.9 14.9 15.9 11.6 12.6 13.6 14.6 15.6 Japan U.S China Private demand excl. volatile orders* Man

37. Slide 37: Japanese Corporate Indices

    Japanese Corporate Indices Corporate Bankruptcies Tankan Corporate Diffusion Index (Quarterly Basis) (Quarterly Basis) JPY Tn Cases 30 3.0 4,000 3,000 20 2.0 2,000 10 1.0 1,000 0 0.0 0 -10 11.9 12.9 13.9 14.9 15.9 11.9 12.9 13.9 14.9 15.9 Li biliti (l Liabilities ft) (left) B k t i ((right) Bankrupt

38. Slide 38: Japanese Real Estate Indicators

    Japanese Real Estate Indicators Japan p TSE REIT Index Office Rental Rates Yen per 3.3m2 2 000 2,000 20 000 20,000 1,500 16,000 1,000 12,000 500 8,000 11.9 12.9 13.9 14.9 15.9 11.9 12.9 13.9 14.9 15.9 Tokyo Avg. Rent Osaka Avg. Rent Source: Tokyo Stock Exchange Source: Miki Shoji Copyright © 2015 OR

39. Slide 39: Domestic Lease Business Indicators

    Domestic Lease Business Indicators Private Equipment Investment New Car Sales JPY Tn 1,000 Units 7,000 14.0% 100 12.0% 6 000 6,000 12 0% 12.0% 10.0% 80 5,000 10.0% 8.0% 60 4,000 8.0% 6.0% 3,000 6.0% 40 4.0% 2,000 4.0% 20 2.0% 1,000 2.0% 0 0.0% 0 0.0% 03.3 05.3 07.3 09.3 11.3 13.3 15.3 04.12 06.12 08

40. Slide 40: Other Domestic Indicators

    Other Domestic Indicators Number of condominium sold in the Domestic Shipping Amount of Solar Cell Tokyo metropolitan area MW No. of transactions 60 000 60,000 10,000 , 50,000 8,000 Others 40 000 40,000 Residential 6,000 30,000 4,000 20 000 20,000 2,000 10,000 0 0 09.3 10.3 11.3 12.3 13.3 14.3 15.3

41. Slide 41: Other Domestic Indicators

    Other Domestic Indicators The number of M&A deals The number of the New Listed Companies OUT-IN 2,500 100 IN-OUT IN-IN 2,000 80 1 500 1,500 60 1,000 40 500 20 0 0 09 12 09.12 10 12 10.12 11 12 11.12 12 12 12.12 13 12 13.12 14 12 14.12 S Source: RECOF C Corporation ti S Source: T k Stock Tokyo St k E

42. Slide 42: 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 04.3 06.3 08.3 10.3 12.3 14.3 05.3 07.3 09.3 11.3 13.3 15.3 S Source: JJapan St Statistics ti ti B Bureau S Source: JJap

43. Slide 43: 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,

44. Slide 44: 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

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