Slide 1: Third Quarter Consolidated Financial Results
ORIX Corporation Third Quarter Consolidated Financial Results For the Nine-Month Period Ended December 31, 2023 Kazuki Yamamoto Operating Officer Corporate Function Unit Responsible for Corporate Planning, Investor Relations, and Sustainability February 7, 2024 1 Copyright © ORIX Corporation All rig
Slide 2: Executive Summary
Executive Summary (1) Q3 net profit was 91.1 Bln JPY (up 40% QoQ, up 2% YoY) Second highest quarterly base profit recorded since start of pandemic (up 19% QoQ), segment profits also highest since FY22.3 Q4 (Yayoi exit) Inbound tourism-related businesses, Real Estate, domestic PE and Insurance segmen
Slide 3: Net Income & ROE
Net Income & ROE ✓ Q1-Q3 219.2 Bln JPY in net income* (up 3% YoY), annualized ROE of 8.0% ✓ 91.1 Bln JPY in Q3 net income, up 26.0 Bln JPY QoQ (+40%), second highest quarterly net profit recorded since start of pandemic *Net income refers to Net Income Attributable to ORIX Corporation Shareholders F
Slide 4: Breakdown of Segment Profits
Breakdown of Segment Profits 268.8 Bln JPY, up 16% YoY (+37.2 Bln JPY) FY24.3 Q1-Q3 Base Segment profits profits Base profits higher on strong performance in inbound tourism-related businesses, 319.2 Bln JPY profit growth in Insurance. Growth at domestic PE investees also contributed +9% YoY 50.4 Bl
Slide 5: Segment Profits
Segment Profits ✓ Domestic segments performed well, primarily Real Estate, PE Investment and Concession, Insurance ✓ Overseas segment profits lower owing to decline in investment gains, heavier hedging cost burden for foreign-currency denominated investments (Bln JPY) Segment Profits Breakdown 24.3
Slide 6: Segment Assets
Segment Assets ✓ Segment assets higher mainly due to changes in forex (360.2 Bln JPY out of 839.8 Bln JPY vs. end-FY23.3) ✓ Investment in and lending to Toshiba, aircraft purchases, and new business execution in Asia and Australia also contributed to growth in assets (Bln JPY) Segment Assets Breakdo
Slide 7: Inbound Tourism Drives Growth in Base Profits
Inbound Tourism Drives Growth in Base Profits ✓ Airport concession: Both aero/non-aero operating revenues*1 recovered, anticipate additional growth in profits on back of large-scale facility renovation ✓ Facility operations: Profits exceeded pre-COVID levels on combination of higher occupancy rate a
Slide 8: Reopening – Key Indicators
Reopening – Key Indicators ✓ Kansai International Airport international route passengers recovered to 85% of 2019 levels, while overseas travelers already at 110% (Dec 2023) ✓ Aircraft lease rates (global average) and RevPAR (ORIX hotels/inns) have surpassed pre-COVID levels, continue to rise Narrow
Slide 9: FY24.3 Results and Earnings Targets (Four Categories) and Near-term Direction
FY24.3 Results and Earnings Targets (Four Categories) and Near-term Direction ✓ Domestic: Financial, non-financial both performed well, primarily driven by Real Estate, Insurance, and growth in inbound tourism-rel. businesses ✓ Overseas: Segment profits down on absence of Environment and Energy inve
Slide 10: Q1-Q3 FY24.3 Results and FY24.3, FY25.3 Targets
(From FY24.3 H1 results presentation Q1-Q3 FY24.3 Results and FY24.3, FY25.3 Targets 2023年11月公表資料（一部更新） announced in Nov 2023 with some updates) ✓ Q1-Q3 results represent 66% progress towards full-year net income target ✓ Continue to focus on capital recycling efforts to attain full-FY24.3 net incom
Slide 11: Segment Information
Segment Information 11 Copyright © ORIX Corporation All rights reserved.
Slide 12: Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and Maintenance Leasing Segment profit (Q1-Q3): 59.2 Bln JPY YoY + 1 Bln JPY （+2％） Segment assets: 1,505.7 Bln JPY YTD -8.4b Bln JPY （-1%） ✓ Corporate Financial Services: Robust fee revenues a positive, M&A brokerage ✓ Corporate Financial Services: Remain careful in sele
Slide 13: Corporate Financial Services and Maintenance Leasing - About the Business
Corporate Financial Services and Maintenance Leasing - About the Business Main business: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment Corporate Financial Services Auto Rentec World leader in vehicles under Leading equipment r
Slide 14: Real Estate
Real Estate Segment profit (Q1-Q3): 51.4 Bln JPY YoY +26.9 Bln JPY （+110％） Segment assets: 1,005.6 Bln JPY YTD +70.6 Bln JPY （+8%） ✓ RE Investment and Facilities Operation: Profits up sharply on strong performance ✓ Assets increased as new logistics facilities developed while actively of managed fac
Slide 15: Real Estate – About the Business
Real Estate – About the Business Main Business: Real estate development, rental and management; facility operation; real estate asset management Segment Assets Segment Asset Trends Unrealized gains on rental （as of end-March 2023） properties* DAIKYO Leased logistics facilities, condominiums, office
Slide 16: PE Investment and Concession
PE Investment and Concession Segment profit (Q1-Q3): 23.0 Bln JPY YoY +16.1 Bln JPY （+235％） Segment assets: 800.8 Bln JPY YTD +195.4 Bln JPY （+32%） ✓ PE Investment: Enhanced profits led by several exits and profit contributions ✓ Assets higher on investment in and loan to Toshiba (LP investment: 100
Slide 17: PE Investment and Concession – About the Business
PE Investment and Concession – About the Business Currently invested in 18 companies (as of end-March 2023) Investment Track Record Investee Companies Leveraging our broad network and experience, we have established a Management IT Services Initial Business investment superior investment track recor
Slide 18: Environment and Energy
Environment and Energy YoY -12.0 Bln JPY （-38％） YTD +72.4 Bln JPY （+63.3 Bln JPY from Segment profit (Q1-Q3): 19.8 Bln JPY Segment assets: 846.0 Bln JPY forex) ✓ Domestic: Revenue impacted by output caps in Q1, cumulative Q1-Q3 results ✓ Assets increased, mainly due to changes in forex were in line
Slide 19: Global Renewable Energy Portfolio
Global Renewable Energy Portfolio (as of end-Dec. 2023) ✓ Total net owned operating capacity of 4.3 GW worldwide ✓ Total operating capacity (incl. assets in operation, under construction, and in development): Elawan 11 GW, Greenko 18 GW Spain & other locations China Japan USA & other locations ・Elaw
Slide 20: Insurance
Insurance Segment profit (Q1-Q3): 53.4 Bln JPY YoY +26.9 Bln （+101％） Segment assets: 2,205.7 Bln JPY YTD +155.3 Bln JPY （+42.2 Bln JPY from forex) ✓ Significant profit increase due to reduction in COVID-related payout expenses ✓ Assets increased, mostly due to changes in forex and growth in investme
Slide 21: Life Insurance – About the Business
Life Insurance – About the Business ✓ Shift from mix dominated by third-sector products (such as medical insurance CURE) to a more well-balanced portfolio with introduction of first-sector products (including whole life insurance RISE, US dollar-denominated whole-life insurance Candle) ✓ Strategy de
Slide 22: Banking and Credit
Banking and Credit Segment profit (Q1-Q3): 26.9 Bln JPY YoY +2.0 Bln JPY （+8％） Segment assets: 2,750.5 Bln JPY YTD +51.8 Bln JPY （+2%) ✓ Banking: profits up YoY as higher rates bolstered interest income from lending, ✓ Assets up thanks to expansion in merchant banking business, ongoing with only mar
Slide 23: Banking – About the Business
Banking – About the Business ✓ In addition to its mainstay real-estate investment loan business, ORIX Bank is strengthening its business financing industries which support a sustainable society ✓ By utilizing its trust banking license, ORIX Bank will develop and sell financial products, such as secu
Slide 24: Aircraft and Ships
Aircraft and Ships Segment profit (Q1-Q3): 16.1 Bln JPY YoY -0.9 Bln JPY（-5％） Segment assets: 866.1 Bln JPY YTD +123.2 Bln JPY （+50.1 Bln JPY from forex) ✓ Aircraft: Profits up on higher lease revenues as passenger market continues to ✓ Assets higher due to changes in forex, aircraft purchases recov
Slide 25: Aircraft and Ships – About the Business
Aircraft and Ships – About the Business GLOBALLY NARROWBODY OEM DIVERSE WEIGHTING BREAKDOWN Owned Committed ORIX （NBV） （number of aircraft） （number of aircraft） fleet fleet Aviation 60 0 11% 18% ✓ Fully-owned subsidiary 30% Average age Average age ✓ Mainly trading in second- hand market 6.6 years 5.
Slide 26: ORIX USA
ORIX USA Segment profit (Q1-Q3): 27.8 Bln JPY YoY -5.2 Bln JPY （-16%) Segment assets: 1,451.2 Bln JPY YTD -10.8 Bln JPY （+85.4 Bln JPY from forex) ✓ Profits lower on absence of investment gains from last year’s PE exits ✓ Remain price sensitive and selective in underwriting new deals. Yen- denominat
Slide 27: ORIX USA – About the Business
ORIX USA – About the Business ✓ A provider of capital and financing solutions to middle market companies in USA, targets growth in asset management for three key verticals (total AUM / AUA $75.4 Bln) ✓ Operates a hybrid strategy, investing own principal capital while providing capital market and ass
Slide 28: ORIX Europe
ORIX Europe Segment profit (Q1-Q3): 20.8 Bln JPY YoY -15.1 Bln JPY （-42％） Segment assets: 444.9 Bln YTD +27.0 Bln JPY （+32.3 Bln JPY from forex) ✓ Lower profits resulting from increased foreign currency-related hedging costs at ✓ Assets higher, mostly due to changes in forex Robeco Group, smaller pe
Slide 29: ORIX Europe – About the Business
ORIX Europe – About the Business ✓ Asset management business including traditional equities, fixed income, commodities, renewable energy and other fund management ✓ Focus on maximizing growth in asset management business by capitalizing on global network (e.g. Robeco’s Asia strategy) Major Group Com
Slide 30: Asia and Australia
Asia and Australia Segment profit (Q1-Q3): 20.7 Bln JPY YoY -13.8 Bln JPY （-40％） Segment assets: 1,558.5 Bln YTD +163.4 Bln JPY （+87.0 Bln JPY from forex) ✓ Despite growth in lease assets in South Korea, Australia, India, profits ✓ Assets up YTD as result of favorable new lease executions in various
Slide 31: Asia and Australia – About the Business
Asia and Australia – About the Business ✓ Leasing primarily for industrial equipment and automobile across Asia and Australia, as well as PE investment business mainly in Greater China Segment Assets by Business Trends of Segment Assets by major Country and Region （Bln JPY） Leases, Loans*1 Investmen
Slide 32: Appendices
Appendices 32 Copyright © ORIX Corporation All rights reserved.
Slide 33: ORIX by the Numbers
ORIX by the Numbers Strong profitability High growth Leading renewable energy 10-year net income CAGR provider in Japan Net income ROE (FY13.3-FY23.3) Renewable energy generating Capacity (worldwide) *2 290.3 Bln JPY 8.5% 10％ 4.3GW Enhanced shareholder returns Well-balanced earnings*1 Top-class inve
Slide 34: About ORIX: Expertise in Business and Collective Capabilities of the Group
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 34 Copyright © ORIX Corporation All rights reserved.
Slide 35: About ORIX: Proven Track Record of Profitability
About ORIX Proven Track Record of Profitability ✓ Excluding founding year, ORIX has been profitable for 58 straight years Net Income Attributable to ORIX Corporation Shareholders Bln JPY FY2021.3 350 COVID-19 crisis 300 250 FY2009.3 Global financial crisis FY2002.3 200 Burst of IT bubble 150 FY1998.
Slide 36: Capital Recycling - Profit Growth
Capital Recycling - Profit Growth (From FY23.3 H1 results presentation announced in Nov 2022 with some updates) ✓ Accelerated capital recycling model led to company-wide net income growth of 2.6X, CAGR of 10% (FY23.3 vs FY13.3) ✓ Also strengthened financial base, reducing D/E ratio from 2.7X to 1.6X
Slide 37: ORIX Group – Asset Management Business
ORIX Group – Asset Management Business ✓ Expansion in asset management business centered on Europe, US supports base profit growth ✓ Focus on management of diversified asset base, in addition to equities, fixed income, and alternative assets (Top domestic manager of renewable energy, aircraft, condo
Slide 38: Capital Recycling
Capital Recycling (From FY24.3 H1 results presentation announced in Nov 2023 with some updates) ✓ H1 results of 23.6 Bln JPY (investment gains), profits set to rise sharply on realization of exits under consideration in H2 and beyond ✓ Exits centered on Real Estate (strong demand from overseas), dom
Slide 39: Investment Gains and Major Breakdown
Investment Gains and Major Breakdown (JPY) Segment FY18.3 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3 42.9Bln 56.5Bln 53.6Bln 16.9Bln 21.4Bln 29.5Bln Real Estate ORIX Golf Mixed-use property ORIX Living Logistics centers Management PE Investment and 26.9Bln 0.3Bln 16.4Bln -0.7Bln -19.1Bln 2.6Bln Concession A
Slide 40: Financials: Funding Structure / Employed Capital Ratio
Financials Funding Structure / Employed Capital Ratio ✓ Diversified funding methods and maintained a high long-term debt ratio ✓ Maintained appropriate employed capital ratio through progress in capital recycling Funding Structure and Long-term Debt Ratio*1 Shareholders’ Equity / Employed Capital Ra
Slide 41: Financials: Funding Structure
Financials Funding Structure ✓ Diversified funding. Controlled funding costs while maintaining a high long-term debt ratio Breakdown of Funding Trends in Funding Costs Foreign currency funding costs JPY funding costs Deposits 27% 5.09% * Borrowings from FY24.3 Q3 financial 8.2 Tln JPY institutions 5
Slide 42: Financials: D/E Ratio, Credit Ratings, Interest Rate & Forex Sensitivity
Financials D/E Ratio, Credit Ratings, Interest Rate & Forex Sensitivity D/E Ratio・ROE Credit Ratings Interest Rate & Forex Sensitivity End-Jan 2024 Interest rates D/E ratio (excl. deposits) 3.8X S&P A- (Negative) ◼ Japanese Yen = Positive 3.4X 11.7% 12.1% 11.5% 11.3% 11.6% Moody’s A3 (Stable) ◼ US D
Slide 43: ESG: Ratings
ESG: Ratings ✓ As of March 2023, ORIX now included in all six ESG indices (for Japanese stocks) adopted by Government Pension Investment Fund (GPIF) ✓ ORIX’s Board of Directors now has a majority of outside directors, making progress towards achievement of other key goals, including GHG emissions re
Slide 44: Improving Share Price Valuation (Corporate Value)
Improving Share Price Valuation (Corporate Value) (From FY23.3 results presentation announced in May 2023 with some updates) ✓ Will strengthen ROE through sustainable profit growth and effective use of capital, first goal to surpass P/B of 1.0x ✓ Promoting proactive communication by top management (
Slide 45: Shareholder Returns
Shareholder Returns ✓ Maintain basic policy of “1/3 of net income allocated to dividends, 1/3 to new investments, and 1/3 to retained earnings and share buybacks” ✓ Will flexibly carry out shareholder returns while considering profit growth, investment pipeline, and financial soundness Dividend per
Slide 46: 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 47: 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