Slide 1: First Quarter Consolidated Financial Results
ORIX Corporation First Quarter Consolidated Financial Results For the Three-Month Period Ended June 30, 2021 Hitomaro Yano Executive Officer Head of Treasury and Accounting Headquarters August 3, 2021 1 (TSE: 8591; NYSE: IX) Company Name Copyright © 2020 ORIX Corporation All rights reserved.
Slide 2: Executive Summary
Executive Summary (1) Net income & ROE Net income of 65.2 JPY Bn（+30.3% YoY, +29.5% QoQ), annualized ROE 8.6% Achieved 26.1% of FY22.3 net income forecast (250.0 JPY Bn) (2) Segment profit growth ORIX Europe, ORIX USA, Real Estate, and Corporate Financial Services & Maintenance Leasing segments all
Slide 3: (1) Net Income & ROE
(1) Net Income & ROE ✓ 65.2 JPY Bn in net income (+30.3% YoY, +29.5% QoQ, 26.1% of FY22.3 forecast of 250.0 JPY Bn) Annualized ROE at 8.6% ✓ Achieved steady recovery in net income since FY21.3 Q2, results exceeded FY20.3 Q4 levels Net Income* and ROE Quarterly Net Income and ROE Trends (JPY Bn) (JPY
Slide 4: (1) Breakdown of Segment Profits
(1) Breakdown of Segment Profits 77.2 JPY Bn, up by 23.3% YoY (+14.6 JPY Bn) FY 22.3 Q1 Base Profits Robust performance in multiple segments (incl. ORIX Europe, ORIX USA, Corporate Financial Services & Segment profits Maintenance Leasing) offset decline in three businesses most impacted by COVID-19
Slide 5: (2) Segment Profit Growth Healthy Earnings Offset COVID Impact
(2) Segment Profit Growth Healthy Earnings Offset COVID Impact ✓ ORIX Europe, ORIX USA, Real Estate, Corporate Financial Services & Maintenance Leasing posted sharp profit growth, realized investment gains ✓ Healthy profit gains offset decline in earnings at three businesses*1 with major COVID impac
Slide 6: Segment Performance (1) Segment Profits
Segment Performance (1) Segment Profits ✓ Q1 Profits rose QoQ in seven segments while also growing YoY in six segments Segment profits （JPY Bn） （JPY Bn） 106.9 21.3 Q1 21.3 Q2 21.3 Q3 21.3 Q4 22.3 Q1 QoQ YoY Highlight Corporate Financial Services 1 13.3 17.8 19.3 20.3 20.3 ±0 +7.0 Profits up on brisk
Slide 7: Segment Performance (2) Segment Assets
Segment Performance (2) Segment Assets ✓ Corporate Financial Services continues to prioritize careful selection of deals, assets down YoY ✓ Assets increased in Asia and Australia, reflecting growth in new leasing business in several countries （JPY Bn） Segment assets （JPY Bn） 22.3 Q1 YTD ROA* Highlig
Slide 8: (3) Investment Pipeline & New Execution
(3) Investment Pipeline & New Execution ✓ Rich pipeline includes renewable energy projects and MICE-IR project ✓ Steady progress in execution of previously-announced projects, issued company’s first green bond targeted at retail investors Category Overview Elawan deal closed in July 2021, accelerati
Slide 9: （blank）
（blank） Copyright © 2021 ORIX Corporation All rights reserved. 9
Slide 10: Segment Performance
Segment Performance Copyright © 2021 ORIX Corporation All rights reserved. 10
Slide 11: 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: 20.3 JPY Bn YoY +7.0 JPY Bn (+53%) Segment Assets: 1,635.9 JPY Bn Y
Slide 12: Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and Maintenance Leasing Main business: Finance and fee business; Yayoi; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment Corporate Financial Services Yayoi Auto Rentec Provide solutions for SMEs, Rental & specialized services
Slide 13: Segment Performance (2) Real Estate
Segment Performance (2) Real Estate Segment Profits : 11.0 JPY Bn YoY +9.2 JPY Bn（+495％） Segment Assets : 864.3 JPY Bn YTD -7.7 JPY Bn（-1％） ✓ Profits up sharply on investment gains from logistics facility sale, higher ✓ Assets marginally lower on sales of logistics facility, rental new condominium s
Slide 14: 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 （as of Mar 31, 2021） properties* Primarily leased Primarily DAIKYO logistics facilities, condominiums office buil
Slide 15: Segment Performance (3) PE Investment and Concession
Segment Performance (3) PE Investment and Concession Segment Profits: 0.3 JPY Bn YoY -4.3 JPY Bn (-94%) Segment Assets: 382.0 JPY Bn YTD +3.3 JPY Bn (+1%) ✓ PE Investment: Production at Kobayashi Kako still halted, but profit ✓ Assets up vs. end-FY21.3 on business expansion at PE investees contribut
Slide 16: PE Investment and Concession
PE Investment and Concession ✓ Currently invested in 17 companies (as of June 30, 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
Slide 17: Segment Performance (4) Environment and Energy
Segment Performance (4) Environment and Energy Segment Profits: 4.5 JPY Bn YoY -3.2 JPY Bn (-42%) Segment Assets: 490.9 JPY Bn YTD +1.7 JPY Bn (flat) ✓ Segment profits fell YoY on absence of valuation gains booked in FY21.3 ✓ Assets flat vs. end-FY21.3, as depreciation of existing power Q1 generatio
Slide 18: Global Renewable Energy Portfolio
Global Renewable Energy Portfolio ✓ Total net owned operating capacity of 3 GW* worldwide （as of June 30, 2021） Around 2 GW of projects under construction, primarily at Elawan, Greenko Pipeline assets include Greenko (more than 8 GW), Elawan (more than 9 GW) Spain & other locations China Japan USA &
Slide 19: Segment Performance (5) Insurance
Segment Performance (5) Insurance Segment Profits: 15.5 JPY Bn YoY -2.8 JPY Bn (-15%) Segment Assets: 1,951.5 JPY Bn YTD -8.0 JPY Bn (flat) ✓ Segment recorded stable profits, as expansion in non-face-to-face channels ✓ Assets flat vs. end-FY21.3. Growth in number of policies in force pushed fueled c
Slide 20: 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. Industry leader in share of direct chan
Slide 21: Segment Performance (6) Banking and Credit
Segment Performance (6) Banking and Credit Segment Profits: 12.8 JPY Bn YoY +0.9 JPY Bn (+7%) Segment Assets: 2,702.8 JPY Bn YTD +12.2 JPY Bn (flat) ✓ Banking: Profits held steady on growth in real-estate investment loans ✓ Banking: Assets rose on increase in real-estate investment loans ✓ Credit: P
Slide 22: 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 23: Segment Performance (7) Aircraft and Ships
Segment Performance (7) Aircraft and Ships Segment Profits: -4.8 JPY Bn YoY -12.4 JPY Bn (-164%) Segment Assets: 593.6 JPY Bn YoY -8.1 JPY Bn (-1%) ✓ Aircraft: Despite aircraft profits being on par YoY, Avolon booked losses ✓ Aircraft: Segment assets fell owing to depreciation, sale of assets relate
Slide 24: Aircraft Leasing Business
Aircraft Leasing Business GLOBALLY NARROWBODY OEM DIVERSE WEIGHTING BREAKDOWN Owned Committed ORIX （NBV） （number of aircraft） （number of aircraft） fleet fleet 68 0 14% 16% Average age 33% 6.3 years 41% 59% Remaining Managed fleet lease term 152 53% 84% 6.4 years APAC Narrowbody Airbus Americas EMEA
Slide 25: Segment Performance (8) ORIX USA
Segment Performance (8) ORIX USA Segment Profits: 25.2 JPY Bn YoY +25.7 JPY Bn (return to the black) Segment Assets: 1,209.1 JPY Bn YTD -10.9 JPY Bn (-1%) ✓ Segment profit up sharply on investment gains from multiple PE exits, including ✓ Assets down vs. end-FY21.3 on ongoing caution about credit de
Slide 26: 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 in all three verticals (total AUM / AUA $72.7 USD Bn)（as of June 30, 2021） Credit Private Equi
Slide 27: Segment Performance (9) ORIX Europe
Segment Performance (9) ORIX Europe Segment Profits: 13.5 JPY Bn YoY +6.3 JPY Bn (+87%) Segment Assets: 368.0 JPY Bn YTD -1.5 JPY Bn (flat) ✓ AUM continued strong recovery, hit record level at end-FY22.3 Q1 ✓ Segment assets mostly unchanged vs. end-FY21.3 ✓ Robeco, a leader in sustainable investing,
Slide 28: ORIX Europe
ORIX Europe ✓ Segment business: Equities, fixed income, renewable energy and other fund management ✓ Actively promoting ESG investment, especially through Robeco and Gravis Capital Management An ESG pioneer since the mid-1990s, Robeco is Major Subsidiaries Head Office Primary Business Established re
Slide 29: 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 June 30, 2021): AUM OCU (ORIX Corporation USA) ~52 JPY Tn 42.8 J
Slide 30: Segment Performance (10) Asia and Australia
Segment Performance (10) Asia and Australia Segment Profits: 8.8 JPY Bn YoY +1.9 JPY Bn (+28%) Segment Assets: 1,111.2 JPY Bn YTD +26.9 JPY Bn (+2%) ✓ Segment profits up as new lease business accelerated in China, South Korea ✓ Assets remain on downtrend in Southeast Asia owing to COVID impact, ✓ Au
Slide 31: Asia and Australia
Asia and Australia Main Business: Finance and investment businesses in Asia and Australia Segment Assets NET Segment Revenue* Yields on Financial Assets (as of Mar 31, 2021) （FY 21.3） (JPY Bn) 7.5% 650.0 7.1% 4% 6.9% 7.0% 6.9% 6.9% Other 600.0 7.0% 16% 6.5% 18% 31% 550.0 Other Investment in Net Inve
Slide 32: Appendix
Appendix Copyright © 2021 ORIX Corporation All rights reserved. 32
Slide 33: 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 34: 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. 34
Slide 35: 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. 35
Slide 36: 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 8% Corporate Financial Services Finance and fee business; leasing and rental of automobiles, electronic measuring 19% instruments and ICT-related equip
Slide 37: Outlook Beyond FY22.3
Outlook Beyond FY22.3 (Announced at FY21.3 Results Briefing on May 13, 2021) ✓ 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)
Slide 38: Three Portfolio Categories
Three Portfolio Categories (Breakdown of Financing, Asset management and Insurance, Operation and Investment categories on P37) Three Categories Three Category and Segment Matrix Asset management & Financing Operation & Investments Insurance Corporate Financial Services and Auto, rental equipment, C
Slide 39: Segment Profits of Real Estate (Facilities Operation), Aircraft Leasing, Concession
Segment Profits of Real Estate (Facilities Operation), Aircraft Leasing, Concession ✓ Real-estate (facilities operations), aircraft leasing, concession businesses continued to see COVID impact (JPY Bn) Segment profit YoY Impact FY20.3 FY21.3 FY22.3 vs. FY20.3 Vs. FY21.3 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q1 （億円）
Slide 40: 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 41: 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 42: 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 43: 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 Jun 30, 2021 3.00% 60% ABS, CMBS 2.00% 40% 2% Borro
Slide 44: Shareholder Return
Shareholder Return ✓ Full-year dividend per share: FY22.3 78 JPY (H1 dividend of 39 JPY) ✓ Buyback program: FY22.3 50 JPY Bn planned (10.2 JPY Bn executed as of June 30, 2021) Dividend per Share and Payout Ratio Share Buyback and Total Return Ratio （JPY） （JPY Bn） Total dividend Buyback (actual) Buyb
Slide 45: ORIX's ESG Policies: Environment
ORIX’s ESG Policies: Environment (Announced at FY21.3 Results Briefing on May 13, 2021) ✓ 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 Emis
Slide 46: ORIX's ESG Policies: Social
ORIX’s ESG Policies: Social (Announced at FY21.3 Results Briefing on May 13, 2021) ✓ 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 soc
Slide 47: 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 ✓ From FY22.3, considering specific plans on how to link ESG metrics to Director compensation Committee
Slide 48: 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 49: ORIX Corporation Investor Relations
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