Orix Corporation · TSE:8591

Orix — FY2012 Earnings Presentation

34 slides from Orix's earnings presentation, May 11, 2012

  1. Slide 1: Consolidated Financial Results for Fiscal Year Ended March 31, 2012

    ORIX Corporation (TSE: 8591; NYSE: IX) Consolidated Financial Results For the Consolidated Fiscal Year Ended March 31, 2012 May 11, 2012 Haruyuki Urata Deputy President & CFO Shintaro Agata Corporate Executive Vice President, Head of the Treasury Headquarters Takao Kato Corporate Senior Vice Preside

  2. Slide 2: 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

  3. Slide 3: Contents

    Contents I. FY 12.3 Results P. 3 II. Future Direction P. 4 III. Segment Results and Strategies P. 6 IV. Real Estate Segment P. 14 V. Overseas Business Segment P. 15 VI. Summary P. 16 Appendix Copyright © 2012 ORIX Corporation All rights reserved. 2

  4. Slide 4: I. FY 12.3 Results

    I. FY 12.3 Results FY 12.3 Achieved 86.2bn yen in Net Income, up 28% YoY Accomplished steady growth （JPY Bn）120 10.0% 100.0 100 Net Income ROE 86.2 8.0% 80 67.3 6.0% 60 37.8 4.0% 40 21.9 2.0% 20 0 0.0% 09/3 10/3 11/3 12/3 13/3 (Target) FY13.3 100bn yen Net Income (16% increase) “Flexibly respond to

  5. Slide 5: II. Future Direction

    II. Future Direction  Accumulated experience and know how, wide-ranging expertise  Group-wide cross-functional collaboration and co-working “Finance + Services” Debt to Equity, and then on to Operations  Thoroughly pursue profitability in debt business  Capture growth potential through investmen

  6. Slide 6: II. Future Direction

    II. Future Direction  More efficient use of capital while maintaining capital sufficiency  Aim for steady EPS growth Trend in Shareholders’ Equity and D/E Ratio (JPY Bn) (Times) 1,600 4.5 4.0 1,200 3.5 800 3.0 400 2.5 0 2.0 09/3 10/3 11/3 12/3 13/3 Capital Employed Capital Reserve Adjusted D/E Rat

  7. Slide 7: Segment Results and Strategies: Profit Growth

    III. Segment Results and Strategies Profit Growth  Achieved increased profit in FY12.3 for all segments excluding the Retail segment  Aim for increased profits in all segments this year Yearly Trend in Segment Profits （JPY Bn） 200 150 Real Estate Investment and 100 Operation Corporate Financial 50

  8. Slide 8: Segment Results and Strategies: Asset Expansion

    III. Segment Results and Strategies Asset Expansion  Steadily increased segment asset ROA  Aim for total asset growth while decreasing real estate assets （JPY Bn） Yearly Trend in Segment Assets 7,000 2.0% Investment and 6,000 Operation 1.6% Maintenance Leasing 5,000 Corporate Financial 1.2% 4,000

  9. Slide 9: 1. Corporate Financial Services

    III. Segment Results and Strategies 1. Corporate Financial Services Trend in Performance （JPY Bn） FY12.3 Results 30  Expanded the client base 20 10  Acquired leasing assets, increased 0 new business 10/3 11/3 12/3 -10 -20 Strategy for FY13.3 Segment Profit Base Profit 1,200 2%  Expand functions a

  10. Slide 10: 2. Maintenance Leasing

    III. Segment Results and Strategies 2. Maintenance Leasing Trend in Performance （JPY Bn） FY12.3 Results 40 30  Maintained stable high profitability 20  Steadily increased assets 10 0 10/3 11/3 12/3 Strategy for FY13.3 Segment Profit Base Profit 600 5% 4% 400  Expand high value-added services 3% 2

  11. Slide 11: 3. Real Estate

    III. Segment Results and Strategies 3. Real Estate Trend in Performance （JPY Bn） FY12.3 Results 20 15  Reduced assets 10  Maintained rental property NOI yield and vacancy rate 5 0 10/3 11/3 12/3 Strategy for FY13.3 Segment Profit Base Profit 2,000 1.0%  Continue asset reductions 1,600 1,200  Str

  12. Slide 12: 4. Investment and Operation

    III. Segment Results and Strategies 4. Investment and Operation Trend in Performance （JPY Bn） FY12.3 Results 30  Increased servicer profit 20 Recorded gain on sale of shares of 10 an investment 0 10/3 11/3 12/3 Strategy for FY13.3 -10 Segment Profit Base Profit 600 3%  Shift toward three pillars

  13. Slide 13: 5. Retail

    III. Segment Results and Strategies 5. Retail Trend in Performance （JPY Bn） FY12.3 Results 40  Expanded corporate and retail client 30 base 20  Steadily increased base profit 10 0 10/3 11/3 12/3 Strategy for FY13.3 Segment Profit Base Profit 2,000 1.5%  Expand stable revenue base 1,500  Actively

  14. Slide 14: 6. Overseas Business

    III. Segment Results and Strategies 6. Overseas Business Trend in Performance （JPY Bn） FY12.3 Results 60  Contribution from sales of municipal 40 bonds in the U.S.  Increased investment in emerging 20 and growing markets 0 Strategy for FY13.3 10/3 11/3 12/3 Segment Profit Base Profit  U.S.: 1,200

  15. Slide 15: IV. Real Estate Segment

    IV. Real Estate Segment  Rental property income steadily improved due to enhanced leasing  Enhance expertise targeting an expanded stable revenue base Trend in Base Profit New Operating Facilities (JPN Bn) 60 Name Type Opening Location 40 Kyoto Aquarium 12/3 Kyoto 20 Aquarium 0 ORIX Theater Hall 1

  16. Slide 16: V. Overseas Business Segment

    V. Overseas Business Segment  Expand leasing assets in Asia  Expand automobile and aircraft businesses with added value services  Actively expand equity investment centered on Asia Assets by Region Trend in Asian Assets (JPY Bn) (JPY Bn) 300 Middle 300.0 Leasing and East / other assets Europe Oth

  17. Slide 17: VI. Summary

    VI. Summary “Finance ＋ Services” Debt to Equity, and then on to Operations  Thoroughly pursue profitability in debt business  Capture growth potential through investment activity  Capitalize on expertise to pursue own operations and create added value Fiscal Year Target FY13.3 100bn yen Net Incom

  18. Slide 18: Appendix

    Appendix Copyright © 2012 ORIX Corporation All rights reserved. 17

  19. Slide 19: (1) Trend in Performance

    Appendix (1) Trend in Performance (JPY Bn) 10.3 11.3 12.3 Total Revenue 890.6 946.9 972.9 *1 Net Income 37.8 67.3 86.2 Segment Assets 6,284.3 6,142.8 6,002.1 Total Assets 7,739.8 8,581.6 8,354.9 Shareholders' Equity 1,298.7 1,319.3 1,396.1 *2 Shareholders' Equity Ratio 17.2% 17.7% 18.9% *2 D/E Ratio

  20. Slide 20: (2) Profit by Segment

    Appendix (2) Profit by Segment (JPY Bn) 10.3 11.3 12.3 Corporate Financial Services (19.5) 10.0 21.5 Maintenance Leasing 23.3 26.2 34.7 Real Estate 0.1 0.1 1.3 Investment and Operation (2.4) 13.2 16.0 Retail 31.1 23.8 21.8 Overseas Business 37.1 45.6 49.8 Total Segment Profit 69.9 118.9 145.2 * Inco

  21. Slide 21: (3) Base Profit

    Appendix (3) Base Profit (JPY Bn) Segment profit is net income including income from discontinued operations (before applicable tax effect), net income attributable to noncontrolling interests and net income attributable to redeemable noncontrolling interests . The base profit shown is presented on

  22. Slide 22: (4) Assets by Segment & Region

    Appendix (4) Assets by Segment & Region (JPY Bn) 10.3 11.3 12.3 Corporate Financial Services 1,140.3 968.3 898.8 Maintenance Leasing 515.7 502.7 537.8 Real Estate 1,677.4 1,539.8 1,369.2 Investment and Operation 511.3 506.0 471.1 Retail 1,578.8 1,653.7 1,738.5 Overseas Business 860.8 972.2 986.8 Tot

  23. Slide 23: (5) Funding

    Appendix (5) Funding (JPY Bn) 10.3 11.3 12.3 CP 282.8 180.8 180.4 Borrowings from Financial Institutions 2,585.6 2,360.9 2,277.3 Bonds / MTN 1,339.2 1,450.0 1,393.0 Subtotal 4,207.6 3,991.7 3,850.7 Deposits 853.3 1,065.2 1,103.5 *1 ABS, CMBS 202.2 1,018.2 874.7 Short-term Debt, Long-term Debt and De

  24. Slide 24: (6) Liquidity

    Appendix (6) Liquidity (JPY Bn) 10.3 11.3 12.3 Available Commitment Line (1) 385.9 410.4 427.4 Cash and Cash Equivalents (2) 639.1 732.1 786.9 Liquidity (1+2) 1,025.0 1,142.5 1,214.3 *1 Marketable Short-term Debt (3) 692.1 559.3 418.7 Liquidity Coverage Ratio (1+2)/3 148% 204% 290% Share of Long-Ter

  25. Slide 25: (7) Segment Results - 1

    Appendix (7) Segment Results - 1 Corporate Financial Services (JPY Bn) 10.3 11.3 12.3 Change Segment Revenue 84.2 79.3 72.4 91% Segment Profit (19.5) 10.0 21.5 215% Segment Assets 1,140.3 968.3 898.8 93% ROA (After Tax) -0.9% 0.6% 1.4% - Maintenance Leasing 10.3 11.3 12.3 Change Segment Revenue 226.

  26. Slide 26: (8) Segment Results - 2

    Appendix (8) Segment Results - 2 Real Estate (JPY Bn) 10.3 11.3 12.3 Change Segment Revenue 215.0 217.6 222.6 102% Segment Profit 0.1 0.1 1.3 2498% Segment Assets 1,677.4 1,539.8 1,369.2 89% ROA (After Tax) 0.0% 0.0% 0.1% - Investment and Operation 10.3 11.3 12.3 Change Segment Revenue 87.3 89.6 73.

  27. Slide 27: (9) Segment Results - 3

    Appendix (9) Segment Results - 3 Retail (JPY Bn) 10.3 11.3 12.3 Change Segment Revenue 155.5 148.8 160.1 108% Segment Profit 31.1 23.8 21.8 92% Segment Assets 1,578.8 1,653.7 1,738.5 105% ROA (After Tax) 1.2% 0.9% 0.8% - Overseas Business 10.3 11.3 12.3 Change Segment Revenue 185.9 176.9 187.2 106%

  28. Slide 28: (10) Real Estate Portfolio

    Appendix (10) Real Estate Portfolio  Rental Property Asset By Type (12.3) (JPY Bn) Under Lease Under Property Type Total NOI Yield Development Office Buildings 290.5 4.2% 73.3 363.8 Logistics Centers 47.7 4.6% 15.6 63.3 Commercial Facilities 159.1 6.7% 35.3 194.4 Rental Condos 131.8 4.7% 8.3 140.1

  29. Slide 29: (11) Real Estate Portfolio

    Appendix (11) Real Estate Portfolio  Trend in Real Estate Segment Assets by Type (JPY Bn) Property Type 10.3 11.3 12.3 Rental Property 924.8 905.9 876.3 * Balance of domestic NRL and Under Lease 660.3 680.2 705.9 specified bonds held by ORIX and Under Development 264.4 225.6 170.4 domestic Group co

  30. Slide 30: (12) Asset Quality

    Appendix (12) Asset Quality  Asset Quality (JPY Bn) 10.3 11.3 12.3 (1) Loans that have some 90+ Days Past-Due concern about collection. 25.7 22.8 17.4 I.e. legal procedures, no Direct Financing Leases payment for over 3 90+ Days Past-Due Loans months, poor industry 12.3 10.0 8.6 not Individually Ev

  31. Slide 31: (13) Reconciliation Table of Non-GAAP Financial Measurement

    Appendix (13) 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 transac

  32. Slide 32: (14) Reconciliation Table of Non-GAAP Financial Measurement

    Appendix (14) Reconciliation Table of Non-GAAP Financial Measurement Key Ratio 10.3 11.3 12.3 (JPY Bn) Total Assets （a） 7,739.8 8,581.6 8,354.9 Deduct: Payables under Securitized Leases, Loan Receivables and Investment Securities in Long-Term Debt of Consolidated VIEs *1 202.2 1,018.2 874.7 Adjusted

  33. Slide 33: (15) Reconciliation Table of Non-GAAP Financial Measurement

    Appendix (15) Reconciliation Table of Non-GAAP Financial Measurement (JPY Bn) Consolidated Corporate Investm ent Maintenance Real Overseas Segment Financial Financial Indicator Financial and Retail Total Leasing Estate Business Total Statem ent Services Operations Adjustm ent Segment Profit (a) (19.

  34. Slide 34: 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/ Financial Reports: URL: http://www.orix.co.jp/grp/en/ir/librar

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