Orix Corporation · TSE:8591
Orix — Merger or Acquisition (February 2013)
32 slides from Orix's merger presentation, Feb 19, 2013
Slide 1: Strategic Acquisition of Robeco Group
Strategic Acquisition of Robeco Group February 19, 2013 ORIX Corporation Copyright © 2013 ORIX Corporation All rights reserved.
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,
Slide 3: Table of Contents
Table of Contents I. Overview II. Characteristics of Robeco III Strategic III. St t i Objectives Obj ti IV. Conclusions Co c us o s Roderick Munsters, Chief Executive Officer, Robeco Group Appendix Copyright © 2013 ORIX Corporation All rights reserved. 2
Slide 4: Overview
Overview €1,935mm1 for approx. 90.01% equity stake in Robeco Asset management g company p y with a strong g brand and p proven Strategic St t i track record of attractive returns Acquisition Robeco continues to demonstrate high profitability and robust global AUM growth Further accelerate “F
Slide 5: Characteristics of Robeco
Characteristics of Robeco Robust AUM Growth and 1 Strong g Business Foundation 2 Well-diversified Well diversified Business Portfolio Excellent Management Team and 3 High Profitability Copyright © 2013 ORIX Corporation All rights reserved. 4
Slide 6: Robust AUM Growth and Strong Business Foundation
Robust AUM Growth and Strong Business Foundation With more than 80-year history, Robeco boasts both a strong brand and a robust customer base Consistently strong net flow momentum and recent flow pattern particularly strong Comes near Japanese #1 asset manager in AUM size Institutional AUM Ret
Slide 7: Well-Diversified Business Portfolio
Well--Diversified Business Portfolio Well Well-diversified asset class, investment style, customer base, and region Robeco Group1 €183bn AUM Rotterdam Harbor Capital Robeco Investment Robeco Europe & ROW Transtrend Advisors (HCA) Management (RIM) €105bn AUM €6bn AUM €55bn AUM €17bn AUM Rotterdam R
Slide 8: Excellent Management Team and High Profitability
Excellent Management team and High Profitability Robeco demonstrates high profitability 400 EBITDA Net Income ROE ROA 16% m) 14% ome1 (€mm 300 320 311 12% RO 280 OE / ROA 1((%) 10% A / Net Inco 200 8% 198 6% EBITDA 163 162 100 123 4% 2% 51 0 0% FY2009 2009/12 FY2010 2010/12 FY2011 2011/12 FY2012 2
Slide 9: Strategic Objectives
Strategic Objectives 1 Acquisition q of world’s leading g AM Company p y 2 Acceleration of “Finance Finance + Services Services” 3 Further Expansion of Global Business Foundation 4 Positive Financial Impact to ORIX 5 Strategic Alliance with Rabobank Copyright © 2013 ORIX Corporation All rights reser
Slide 10: Acceleration of "Finance + Services"
Acceleration of “Finance + Services” Expect solid growth in service related revenues with acquisition of Robeco (¥b ) (¥bn) 600.0 Interest related revenues 600.0 500.0 Service related revenues + 500 0 500.0 Automobiles 400.0 Maintenance services 400.0 Vehicle management 300.0 300.0 Ships/Aircraf
Slide 11: Further Expansion of Global Business Foundation
Further Expansion of Global Business Foundation Robeco is primarily active in Europe and the U.S. ORIX has a solid network across Asia, Middle East and Japan Accelerate global business expansion Europe Americas Asia ORIX Office Robeco Office Middle east Japan p Copyright © 2013 ORIX Corporatio
Slide 12: Positive Financial Impact to ORIX
Positive Financial Impact to ORIX Strategic Acquisition and Partnership results in positive impact to ROA, ROE and EPS 10.0% ¥300 ¥300 Net Income ROE 7.7% ¥200 6.2% ¥200 ome (¥bn) 5.1% 110.0 Net Inco 3.0% ¥100 83.5 ¥100 66.0 36.5 ¥0 ¥0 2010/3 2011/3 2012/3 2013/3 Future T Target t Copyright © 2013
Slide 13: Strategic Alliance with Rabobank
Strategic Alliance with Rabobank Capital alliance with Rabobank —Rabobank owns ORIX’s stock of €150mm —Rabobank Rabobank to retain approx approx. 9 9.99% 99% equity stake in Robeco Robeco and Rabobank maintain collaborative relationship Copyright © 2013 ORIX Corporation All rights reserved. 12
Slide 14: Conclusions
Conclusions 1 Acquisition q of world’s leading g AM Company p y 2 Acceleration of “Finance Finance + Services Services” 3 Further Expansion of Global Business Foundation 4 Positive Financial Impact to ORIX 5 Strategic Alliance with Rabobank Copyright © 2013 ORIX Corporation All rights reserved. 13
Slide 15: Roderick Munsters, Chief Executive Officer, Robeco Group
Roderick Munsters, Chief Executive Officer, Robeco Group Copyright © 2013 ORIX Corporation All rights reserved. 14
Slide 16: About Robeco Group
About Robeco Group With more than 80-year history, Robeco boasts both a strong brand and a robust customer base Consistently strong net flow momentum - positive net flows in 11 of last 12 years and recent flow pattern particularly strong in 2011 and 2012 Robeco has produced attractive investme
Slide 17: About Robeco Group – snapshot
About Robeco Group– Group– snapshot Established in 1929 Traditional asset classes (equity, fixed income, money markets) Alternatives (private equity equity, managed futures) Pension solutions Core investment capabilities complemented by a ring of investment boutiques Global leader in res
Slide 18: About Robeco Group – results 2012
About Robeco Group– Group– results 2012 Record AuM: EUR 189bn (2011: EUR 150bn) Record net new inflows: EUR 18.4bn ((2011: EUR 7.5Bn)) Net profit: EUR 197 million (2011: EUR 134 million) 65% of Robeco products outperformed their benchmark Including Robeco Direct. Copyright © 2013 ORIX Corpor
Slide 19: What are the next steps?
What are the next steps? Informing clients and employees about the change of ownership and confirming ORIX’s support for Robeco’s long term commitment to serving clients Set up a joint working group to develop a plan for the transfer and the future operating model of the Dutch banking activities
Slide 20: Opportunities
Opportunities Financially strong parent with global network, strong and balanced funding structure and diversified business portfolio ORIX is strongly committed to support the execution of Robeco strategy 2010 2010-2014 2014 and exploring opportunities that fit well with the Robeco strategy Gr
Slide 21: Appendix
Appendix: Copyright © 2013 ORIX Corporation All rights reserved. 20
Slide 22: Robeco At-A-Glance (1/2)
Robeco At- At-A-Glance (1/2) Foundation 1929 Headquarters Rotterdam, the Netherlands Management CEO of Robeco Group: Roderick Munsters Business Asset Management # of Offices Headquarters, 12 Sales and Representative Offices, and 8 Investment Management and Sales Offices # of Employees 1,
Slide 23: Robeco At-A-Glance (2/2)
Robeco At- At-A-Glance (2/2) Demonstrated attractive financial performances – FY2011 EBITDA : €280mm (approx. ¥31.1bn1) – FY2012 EBITDA : €311mm (approx (approx. ¥32 0bn1) ¥32.0bn – Basis Points of Average AUM remain in range of 35-40bps Fiscal Years Ended December 31 FY2009 FY2010 FY2011 FY2012 A
Slide 24: Characteristics of Robeco Highly Independent and Specialized
Characteristics of Robeco Highly Independent and Specialized History proves any changes in shareholder structure will not prejudice Robeco’s competitive strengths 343 talented investment p professionals across the firm allow Robeco to deliver world class research- driven investment products — No
Slide 25: Robeco Europe & ROW
Robeco Europe & ROW Company Information Business Description Headquarters: Rotterdam, Netherlands AUM (31 (31-Dec-2012): Dec 2012): €104 7bn €104.7bn Widelyy diversified capability p y suite including g equity, fixed income, balanced, and alternative strategies Assets Under Management (€bn) Geog
Slide 26: Harbor Capital Advisors
Harbor Capital Advisors Company Information Business Description Headquarters: Chicago, US Leading mutual fund family with 25 years of AUM (31-Dec-2012): (31 Dec 2012): €54 7bn €54.7bn experience in manager selection — 100% of AUM managed by third-party sub- Assets Under Management (€bn) advisors
Slide 27: Robeco Investment Management
Robeco Investment Management Company Information Business Description Headquarters: Boston, USA Institutionally oriented US asset management AUM (31-Dec-2012): €17.4bn arm of Robeco offering equity and alternative investments Robeco Boston Partners – Value equity Assets Under Management (€bn) ma
Slide 28: Transtrend
Transtrend Company Information Business Description Headquarters: Rotterdam, Netherlands Globally, a top 5 systematic trading focused AUM (31 (31-Dec-2012): Dec 2012): €6 1bn €6.1bn Commodity Trading Advisor (CTA) Strong culture of client focus and operational Assets Under Management (€bn) excel
Slide 29: Capturing Growth in Asset Management Needs
Capturing Growth in Asset Management Needs Global AM needs expected to further grow driven by growth of emerging markets and global aging population Eurozone & UK AUM Growth (€tr) US Mutual Fund AUM Growth ($tr) € 9.8 $ 13.3 6.3% 7.2% € 7.7 $ 9.4 Asia1 AUM Growth ($tr) $4.3 2011 2015E 2010 2015E 1
Slide 30: Financial Profile of ORIX
Financial Profile of ORIX FY2012 estimated Net Income is increased by yoy 32% to ¥110bn and estimated ROE reaches 7.7% ROA of Overseas Business remains at a high g level 【Consolidated Financials】 Fiscal Years Ended March 31 (¥ in bn) FY2010 FY2011 FY2012 FY2013 (E) N t IIncome Net ¥36 5 ¥36.5 ¥6
Slide 31: Financial Profile of ORIX (2/2)
Financial Profile of ORIX (2/2) Funding through both bank loans and cash on hand No equity financing raised via public markets for the transaction (JPY Bn) Liquidity vs. Short-term Liabilities Capital Status 1,600 350% 289% 294% 100% 1,400 300% 148% 204% 1,200 80% 250% 1 000 1,000 200% 60% 800 1
Slide 32: ORIX's Nationwide Network in Japan
ORIX’s Nationwide Network in Japan Leveraging existing ORIX’s nationwide network with 1,222 offices, ORIX will pursue to provide Robeco’s specialized and value-added services/products to capture potential large needs in Japan markets Investment Assets1 accounts for 11.8% of total Households Fina