Slide 1: Consolidated Financial Results for Fiscal Year Ended March 31, 2021
ORIX Corporation Consolidated Financial Results For the Consolidated Fiscal Year Ended March 31, 2021 Makoto Inoue Member of the Board of Directors Representative Executive Officer President & CEO May 13, 2021 1 (TSE: 8591; NYSE: IX) Company Name Copyright © 2020 ORIX Corporation All rights reserved
Slide 2: Overview Net Income / ROE
Overview Net Income / ROE ✓ 192.4 JPY Bn in net income (down 36% YoY). ROE at 6.4% ✓ Net income bottomed at 43.8 JPY Bn in Q2, improving to 48.2 JPY Bn in Q3 and 50.4 JPY Bn in Q4 Net income* and ROE Quarterly Net Income Trends (JPY Bn) (JPY Bn) 100 400.0 11.3% 12.1% 11.6% 10.3% 90 350.0 6.4% 10.0%
Slide 3: Overview Breakdown of FY21.3 Segment Profits
Overview Breakdown of FY21.3 Segment Profits FY 21.3 229.6 JPY Bn, down by -23.5% YoY (-70.7 JPY Bn) Base Profits Segment profits Base profits increased +7.6 JPY Bn YoY, excluding *three businesses most impacted by COVID-19 (-78.3 JPY Bn) 318.9 JPY Bn down by 28% YoY Investment 89.3 JPY Bn, down by
Slide 4: Overview Impact of COVID-19
Overview Impact of COVID-19 ✓ Caution still warranted, but total negative COVID-19 impact has shrunk steadily since Q2 (Figures are based on segment profits) Impact Impact Impact Impact Business Highlight amount (Q1) amount (Q2) amount (Q3) amount (Q4) Hotels and inns recovered in Q2 and Q3, but occ
Slide 5: Segment Performance (1) Segment Profits
Segment Performance (1) Segment Profits ✓ Most segments posted ongoing profit recovery since Q2 (H2 segment profits up 13% vs. H1, Q4 profits in six segments up QoQ) （JPY Bn） （JPY Bn） 443.3 Q1 Q2 Q3 Q4 21.3 QoQ YoY Highlight 63.0 Corporate Financial Services 1 10.2 14.7 16.2 18.0 59.1 1.7 -3.8 Profi
Slide 6: Segment Performance (2) Segment Assets
Segment Performance (2) Segment Assets ✓ Corporate Financial Services and ORIX USA remain cautious about credit deals, assets down YoY ✓ Assets increased in Environment and Energy, PE Investment due to execution of new investments Steady growth in new policies fueled growth in Insurance segment asse
Slide 7: Looking Back over FY 21.3
Looking Back over FY 21.3 FY 21.3 H1 (Nov 2020) FY 21.3 (May 2021) FY 22.3 Forecast (May 2021) Net income 190.0 JPY Bn forecasted 192.4 JPY Bn 250.0 JPY Bn (FY) ・Full-year dividend of 76 JPY per ・ Full-year dividend of 78 JPY per ・ Full-year dividend of 78 JPY per share or 50% payout ratio, share (5
Slide 8: Outlook Beyond FY22.3
Outlook Beyond FY22.3 ✓ Forecast FY22.3 net income of 250.0 JPY Bn Aim to quickly return to net income of 300.0 JPY Bn and achieve 400.0 JPY Bn in medium to long term ✓ ROE: Returning to ROE of 11% or higher is management’s top priority (JPY Bn) Net income: Trends & breakdown 400.0 5,760 ROE FY20.3
Slide 9: Focus Area: Energy & Environment businesses
Focus Area: Energy & Environment businesses ✓ Through Elawan Energy, began full-scale development of renewable energy business in Europe ✓ Exploring options for renewable energy fund launch through U.K. alternative asset manager Gravis Capital Management Total Pipeline Project Value*1 Renewable Ener
Slide 10: Focus Area: Energy & Environment businesses
Focus Area: Energy & Environment businesses ✓ ORIX currently operates appx. 870 MW of solar energy capacity within Japan ✓ Established subsidiary dedicated to management and operation of solar plants in June 2018 ✓ Service provision to third-party projects will also start from FY22.3 in addition to
Slide 11: Focus Area: Others
Focus Area: Others ✓ Beyond energy & environment, primary focus is on PE Investment, asset management, logistics investment & data centers ✓ Preparation for MICE-IR proposal underway, incorporating considerations for COVID-19 impact and CO2 reductions Area Overview ・Achieved investment gains of more
Slide 12: ORIX's ESG Policies: Environment
ORIX’s ESG Policies: Environment ✓ Currently developing Group-wide CO2 reduction targets, with planned announcement by autumn 2021 ✓ Accelerating global expansion of renewable energy business, sustainable real-estate development efforts CO2 Emissions Specific Reduction Measures Environment & Energy
Slide 13: ORIX's ESG Policies: Social
ORIX’s ESG Policies: Social ✓ Recognize promotion of diversity and inclusion to be a source of business growth ✓ ORIX can play a major role in delivering value to society Ratio of female managers Ratio of mid-career hires Delivering value to society (As of Mar 31, 2021) ORIX 26.2% オリックス GROUP Revita
Slide 14: ORIX's ESG Policies: Governance
ORIX’s ESG Policies: Governance ✓ ORIX’s Outside Directors possess a wealth of specialized skills and diverse experience, with multiple Directors having management experience at other corporations ✓ Began discussions from FY22.3 to link ESG metrics to Director compensation Committee Composition – Co
Slide 15: (blank)
(blank) Copyright © 2021 ORIX Corporation All rights reserved. 15
Slide 16: Segment Performance
Segment Performance Copyright © 2021 ORIX Corporation All rights reserved. 16
Slide 17: Segment Performance (1) Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and *As figures less than 0.1 JPY Bn are rounded off, the total of Segment Performance (1) Maintenance Leasing individual business unit figures does not necessarily match segment figures Segment Profits: 59.1 JPY Bn YoY -3.8 JPY Bn (-6%) Segment Assets: 1,658.6 JPY Bn YT
Slide 18: Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and Maintenance Leasing Main business: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and IT-related equipment; Yayoi Corporate Financial Services Auto Yayoi Utilize domestic ORIX Group network to Automobile leasing, No. 1 S
Slide 19: Segment Performance (2) Real Estate
Segment Performance (2) Real Estate Segment Profits : 24.7 JPY Bn YoY -55.5 JPY Bn（-69％） Segment Assets : 872.1 JPY Bn YTD +50.9 JPY Bn（+6％） ✓ RE Investment and Facilities Operations: Profit fell YoY due to temporary ✓ Assets increased mainly due to investment in logistics facilities closures of hot
Slide 20: Real Estate
Real Estate Main Business：Real estate development, rental and management; facility operations; real estate asset management Segment Assets Unrealized gains on rental Segment Asset Trends properties* （as of Mar 31, 2021） (JPY Bn) (JPY Bn) 2500 30.1% 90 35.0% 82.8 Others 80 30.0% 73.7 71.9 70.1 15% 20
Slide 21: Segment Performance (3) PE Investment and Concession
Segment Performance (3) PE Investment and Concession Segment Profits: 3.4 JPY Bn YoY -40.7 JPY Bn (-92%) Segment Assets: 378.7 JPY Bn YTD +56.2 JPY Bn (+17%) ✓ PE Investment: Profits from investees increased due to newly executed ✓ PE Investment: One new investment in Q1*1, three new investments in
Slide 22: PE Investment and Concession
PE Investment and Concession ✓ Currently invested in 17 companies (as of Mar 31, 2021); aim to develop new business segments for ORIX Investment Track Record What makes us unique? Leveraging our broad network and ORIX has not only sufficient funding ability but also possesses significant operating e
Slide 23: Segment Performance (4) Environment and Energy
Segment Performance (4) Environment and Energy Segment Profits: 28.6 JPY Bn YoY +16.9 JPY Bn (+146%) Segment Assets: 506.7 JPY Bn YTD +27.9 JPY Bn (+6%) ✓ Segment profits increased significantly ✓ Acquired 21.6% of Greenko Energy’s outstanding shares ✓ Valuation gains and investment gains booked in
Slide 24: Global Renewable Energy Portfolio
Global Renewable Energy Portfolio ✓ Total net owned operating capacity of 3 GW* worldwide Around 2 GW of projects under construction, primarily at Elawan, Greenko Pipeline assets include Greenko (more than 6 GW), Elawan (more than 9 GW) Spain & other locations China Japan USA & other locations ・Elaw
Slide 25: Segment Performance (5) Insurance
Segment Performance (5) Insurance Segment Profits: 55.1 JPY Bn YoY +10.3 JPY Bn (+23%) Segment Assets: 1,959.5 JPY Bn YTD +379.4 JPY Bn (+24%) ✓ Non-face-to-face channels posted growth, segment recorded stable profits ✓ Investment securities increased due to increase in new policies despite COVID-19
Slide 26: Life Insurance
Life Insurance ✓ Omni-channel strategy utilizing four sales channels - agency, banks and other financial institutions, mail order and Internet sales, and in-person sales by ORIX Life reps ✓ Pioneering Internet / mail-order sales channel first launched in 1997, strong performer during COVID. Industry
Slide 27: Segment Performance (6) Banking and Credit
Segment Performance (6) Banking and Credit Segment Profits: 48.0 JPY Bn YoY +8.9 JPY Bn (+23%) Segment Assets: 2,690.6 JPY Bn YTD +86.9 JPY Bn (+3%) ✓ Banking: Profits remain steady on continued asset growth ✓ Banking: Profits higher on greater demand for real-estate investment ✓ Credit: Profits inc
Slide 28: Banking
Banking ✓ ORIX Bank’s differentiated service menu focused on real-estate investment loans helps it realize a high ROE, ROA compared to peers ✓ Low-cost business model with no branches, ATMs, or settlement services delivers a low expense ratio and a high loan-to-deposit ratio FY20.3 Expense Ratio FY2
Slide 29: Segment Performance (7) Aircraft and Ships
Segment Performance (7) Aircraft and Ships Segment Profits: 3.8 JPY Bn YoY -41.5 JPY Bn (-92%) Segment Assets: 601.8 JPY Bn YoY +16.5 JPY Bn (+3%) ✓ Aircraft leasing, Avolon: Profits decreased on drop in lease revenue, ✓ Excluding forex impact, segment assets flat investment gains (Lease revenue dec
Slide 30: Aircraft Leasing Business
Aircraft Leasing Business GLOBALLY NARROWBODY OEM DIVERSE WEIGHTING BREAKDOWN Owned Committed ORIX （NBV） （number of aircraft） （number of aircraft） fleet fleet 69 0 13% 16% Average age 35% 6.0 years 41% 59% Remaining Managed fleet lease term 151 52% 84% 6.5 years APAC Narrowbody Airbus Americas EMEA
Slide 31: Segment Performance (8) ORIX USA
Segment Performance (8) ORIX USA Segment Profits: 43.6 JPY Bn YoY -13.1 JPY Bn (-23%) Segment Assets: 1,220.1 JPY Bn YTD -153.9 JPY Bn (-11%) ✓ Profit decreased in Q1 due to posting additional reserves (mainly for energy ✓ Remain cautious about credit deals, assets down YoY related business), but re
Slide 32: ORIX USA
ORIX USA ✓ 40+ year track record in US ✓ Focused on serving the middle market customer across three verticals: Credit, Private Equity, Real Estate Aim to achieve further growth in asset management business （as of Mar 31, 2021） Credit Private Equity Real Estate Segment assets: $6 Bn Segment assets: $
Slide 33: Segment Performance (9) ORIX Europe
Segment Performance (9) ORIX Europe Segment Profits: 37.9 JPY Bn YoY -5.9 JPY Bn (-13%) Segment Assets: 369.5 JPY Bn YTD +51.7 JPY Bn (+16%) ✓ AUM recovered strongly, profits increased excluding the capital gain on ✓ Strong increase in AUM on broader market recovery RobecoSAM's rating division ✓ Acq
Slide 34: ORIX Europe
ORIX Europe Segment business: Equity, fixed income asset management Completed acquisition of alternative asset manager Gravis Capital Management* in Feb 2021 ① ORIX Corporation Europe Head Office Primary Business Established An ESG pioneer since the mid-1990s, Robeco is (Acquired) recognized as a le
Slide 35: ORIX Group Asset Management Business
ORIX Group Asset Management Business ✓ Expanding scope of business from traditional equity and fixed income management (OCE) to alternative asset management, primarily in U.S., Europe ORIX Group AUM OCE (ORIX Corporation Europe) (as of Mar 31, 2021): AUM OCU (ORIX Corporation USA) ~50 JPY Tn 39.9 JP
Slide 36: Segment Performance (10) Asia and Australia
Segment Performance (10) Asia and Australia Segment Profits: 14.7 JPY Bn YoY -0.1 JPY Bn (flat) Segment Assets: 1,084.2 JPY Bn YTD +74.0 JPY Bn (+7%) ✓ PE investment recorded impairments, but local financing businesses ✓ Excluding forex impact, segment assets were flat remained stable (Assets decrea
Slide 37: Asia and Australia
Asia and Australia Main Business: Finance and investment businesses in Asia and Australia Major Subsidiaries（Asia and Australia） Country Company Name Primary Business Established (Region) Leasing, Automobile Segment Assets NET Segment Revenue* ORIX Asia Limited Hong Kong Sep. 1971 Leasing, Lending,
Slide 38: Appendix
Appendix Copyright © 2021 ORIX Corporation All rights reserved. 38
Slide 39: About ORIX: Proven Track Record of Profitability
About ORIX Proven Track Record of Profitability ✓ ORIX has achieved 56 years of sustained, profitable growth JPY Bn Net Income Attributable to ORIX Corporation Shareholders 350 300 250 FY2002.3 FY2009.3 Burst of IT bubble Global financial crisis 200 FY1998.3 150 Asian currency crisis FY1993.3 Burst
Slide 40: About ORIX: Expertise in Business and Collective Capabilities
About ORIX Expertise in Business and Collective Capabilities of the Group ✓ ORIX will continue to enhance our expertise in finance and tangible assets as we synergistically expand our businesses Copyright © 2021 ORIX Corporation All rights reserved. 40
Slide 41: About ORIX: Global Network
About ORIX Global Network ✓ Using its expertise cultivated in Japan, ORIX has expanded its business globally, with operations in 31 countries and regions worldwide Copyright © 2021 ORIX Corporation All rights reserved. 41
Slide 42: About ORIX: Profits and Assets by Segment
About ORIX Profits and Assets by Segment ✓ Individual businesses demonstrate their strengths to the maximum extent possible to bring about synergies 5% Corporate Financial Services Finance and fee business; leasing and rental of automobiles, electronic measuring 12% 18% and Maintenance Leasing instr
Slide 43: Three Portfolio Categories
Three Portfolio Categories (Breakdown of Financing, Asset management and Insurance, Operation and Investment categories on P8) Three Categories Three Category and Segment Matrix Asset management & Financing Operation & Investments Insurance Corporate Financial Services and Auto, rental equipment, Co
Slide 44: Breakdown of Investment Gains
Breakdown of Investment Gains ✓ Investment gains typically realized in a variety of segments (mainly Real Estate, Private Equity, and ORIX USA) ✓ Portfolio asset rotation also drives investment gains, e.g. sales of ORIX Golf, ORIX Living Investment gains* Major Business Sales (JPY Bn) Business FY18.
Slide 45: Financials (1) Funding Structure / Employed Capital Ratio
Financials (1) Funding Structure / Employed Capital Ratio ✓ Funding structure: Diversified funding methods and maintained a high ratio of long-term debt ✓ Employed Capital Ratio: Illustrates the ratio of capital employed to ORIX shareholders’ equity Continue to pursue growth while controlling risk a
Slide 46: Financials (2) Liquidity / Credit Ratings
Financials (2) Liquidity / Credit Ratings ✓ Continue to maintain high liquidity ✓ S&P, Moody’s, Fitch all reaffirmed A- ratings. R&I is AA- ✓ Ratings may change depending on timing of investments or asset sales, but we will maintain financial soundness commensurate with an ‘A’ rating over the medium
Slide 47: Financials (3) Funding Structure
Financials (3) Funding Structure ✓ Diversified funding. Controlled costs while maintaining a high long-term debt ratio Breakdown of Funding Trend in Funding Costs and Long-term Debt Ratio* *Excluding deposits 5.00% 100% Deposits 33% 4.00% 80% As of Mar 31, 2021 3.00% 60% 2.00% 40% ABS, CMBS 2% Borro
Slide 48: Shareholder Return
Shareholder Return ✓ Full-year dividend per share : FY21.3 78 JPY (pay-out ratio 50%), FY22.3 78 JPY ✓ Buyback program: FY22.3 50 JPY Bn planned Dividend per Share and Payout Ratio Share Buyback and Total Return Ratio （JPY） （JPY Bn） Total dividend Buyback (actual) Buyback (forecast) Total return rat
Slide 49: 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 50: ORIX Corporation
For the current IR materials and archives of past financial data, please access our website. IR Section https://www.orix.co.jp/grp/en/ir/ IR Library https://www.orix.co.jp/grp/en/ir/library/ ORIX Corporation Investor Relations and Sustainability Department Tel: +81-3-3435-3121 orix_corpcomm@orix.jp