Orix Corporation · TSE:8591
Orix — Q3 FY2006 Earnings Presentation
26 slides from Orix's earnings presentation, Feb 8, 2006
Slide 1: Fiscal 2006 3Q Conference Call
Fiscal 2006 3Q Conference Call 2006.2.8
Slide 2: ORIX Corporation Conference Call
ORIX Corporation (TSE: 8591; NYSE: IX) Conference Call Consolidated Financial Results for the Three- and Nine-Month Periods October 1-December 31, 2005 (3Q) and April 1- December 31, 2005 (February 8, 2006) Shunsuke Takeda, Vice Chairman & CFO Tadao Tsuya, Executive Officer & Head of the Accounting
Slide 3: Disclaimer
Disclaimer These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materi
Slide 4: Outline
Outline 1. ORIX’s Next Business Strategy 2. Revision of Fiscal 2006 Dividend Forecast 3. Overview of the Nine Months (April 1- December 31, 2005) 4. Forecast for Fiscal 2006 5. Segment Information 6. Supplemental Information Copyright © 2006 ORIX Corporation. All rights reserved. 3
Slide 5: 1. Next Business Strategy
—From a growth strategy under economic stagnation to a 1. Next Business Strategy growth strategy moving towards economic recovery— Growth even under Aiming for further growth economic stagnation amid economic recovery 1) Growing profits without 1) Expansion of cross-selling in the increasing assets
Slide 6: 2. Revision of Fiscal 2006 Dividend Forecast
2. Revision of Fiscal 2006 Dividend Forecast —We have revised up our dividend forecast in light of the recent business environment— (Yen) Diluted Earnings Per Share and Dividend Per Share 90.0 (Yen) 2,000 1,742* 100 1,800 1,600 Diluted Earnings Per Share (left scale) 80 1,400 Dividend Per Share (rig
Slide 7: 3. Overview of the Nine Months: 1. Highlights
3. Overview of the Nine Months: 1. Highlights 1. Growth of Revenues from Loans and Leases in Japan and Overseas 2. Increased Gains on Sales of Real Estate and Net Gains on Investment Securities 3. Lower Provisions Realized Copyright © 2006 ORIX Corporation. All rights reserved. 6
Slide 8: 3. Overview of the Nine Months: 2. Profits
3. Overview of the Nine Months: 2. Profits —Net income up 86% on top of a strong performance in the same period of the previous fiscal year— (Billions of yen) IBIT* (Year on Year Change) Net Income (Year on Year Change) 200 192.0 200 Up 71% 150 150 126.1 112.5 Up 86% 100 100 67.7 50 50 0 0 04.4-12 0
Slide 9: 4. Forecast for Fiscal 2006
4. Forecast for Fiscal 2006 —Further upward revision in earnings due to an acceleration in growth of business— Net Income (Billions of yen) Main Reasons for Upward Revision 155.0 Present Up 69% Larger than expected Forecast expansion of new volumes 140.0 Previous for installment loans and Forecast
Slide 10: 5. Segment Information
5. Segment Information — Segments Achieved Higher Profits— (Billions of yen) Segment Profits* (Nine Month Year on Year Change) Corporate Financial Services 38.4 (+9.8) Stable Rental Operations 6.6 (-0.7) Profit Segments Life Insurance 10.3 (+4.5) Asia, Oceania and Europe 27.1 (+9.6) Automobile Opera
Slide 11: Corporate Financial Services Segment
5. Segment Information: Stable Profit Segments Corporate Financial Services Segment Segment Outline Financial Results Main Customers 38.4 Year on Year Change SMEs Profit Drivers 28.6 Segment Profits (Billions of yen) Business Outline Expansion of Leases, loans, and the Up 35% sale of financial rev
Slide 12: Rental Operations Segment
5. Segment Information: Stable Profit Segments Rental Operations Segment Segment Outline Financial Results Main Customers Year on Year Change Corporate Reason for Segment Profits (Billions of yen) Down 10% Lower Profits Business Outline Precision measuring 7.3 6.6 Lower revenues equipment rentals
Slide 13: Life Insurance Segment
5. Segment Information: Stable Profit Segments Life Insurance Segment Segment Outline Financial Results Main Customers Year on Year Change Corporate & Retail Profit Drivers Segment Profits (Billions of yen) Business Outline 10.3 Life insurance sales Higher life 5.8 insurance related Up 79% investm
Slide 14: Asia, Oceania and Europe Segment
5. Segment Information: Stable Profit Segments Asia, Oceania and Europe Segment Segment Outline Financial Results Main Customers 27.1 Year on Year Change SMEs Profit Drivers Segment Profits (Billions of yen) Business Outline 17.5 Steady performance Leases, loans, automobile leases, Up 55% of reven
Slide 15: Automobile Operations Segment
5. Segment Information: Accelerated Growth Segments Automobile Operations Segment Segment Outline Financial Results Main Customers 18.6 Year on Year Change Corporate & Retail 16.2 Profit Drivers Segment Profits (Billions of yen) Business Outline Automobile leasing Growth in Up 14% revenues from an
Slide 16: Real Estate-Related Finance Segment
5. Segment Information: Accelerated Growth Segments Real Estate-Related Finance Segment Segment Outline Financial Results Main Customers 26.8 Year on Year Change Corporate & Retail Profit Drivers Segment Profits (Billions of yen) Business Outline Increase in Corporate loans, 13.7 revenues from hou
Slide 17: Real Estate Segment
5. Segment Information: Accelerated Growth Segments Real Estate Segment Segment Outline Financial Results Main Customers 26.0 Year on Year Change Corporate & Retail Profit Drivers Segment Profits (Billions of yen) Business Outline 18.6 Condominium development, office building Increase in developme
Slide 18: Other Segment
5. Segment Information: Future Growth Segments Other Segment Segment Outline Financial Results Main Customers 30.3 Year on Year Change Corporate & Retail Profit Drivers Segment Profits (Billions of yen) Business Outline Increase in revenues Card loans, venture 16.3 capital, securities Up 86% from
Slide 19: The Americas Segment
5. Segment Information: Future Growth Segments The Americas Segment Segment Outline Financial Results Main Customers 27.6 Year on Year Change Corporate More than double Profit Drivers Segment Profits (Billions of yen) Business Outline Increase in Corporate finance, 12.2 revenues from leases, and r
Slide 20: 6. Supplemental Information: Summary of 3Q Results
6. Supplemental Information: Summary of 3Q Results Change on Change on (Millions of yen except as notes) 2004.4‐ 12 2005.4‐ 12 2004.4-12 2004.4-12 Revenues 622,714 658,802 36,088 ＋6% Income before Income Taxes (IBIT)* 112,466 192,023 79,557 ＋71% Net Income 67,718 126,097 58,379 ＋86% Basic Earnings P
Slide 21: 6. Supplemental Information: Revenues & Expenses
6. Supplemental Information: Revenues & Expenses Revenues (Year on Year) Revenues (Quarterly Trend) (Billions of yen) (Billions of yen) 300 277.3 800 Up 6% 658.8 227.3 221.9 622.7 212.3 209.6 600 200 400 100 200 0 0 04.4-12 05.4-12 3Q 4Q 1Q 2Q 3Q 04.10-12 05.1-3 05.4-6 05.7-9 05.9-12 Expenses (Year
Slide 22: 6. Supplemental Information: IBIT & Net Income
6. Supplemental Information: IBIT & Net Income IBIT (Year on Year Change) IBIT (Quarterly Trend) (Billions of yen) 192.0 (Billions of yen) 200 100 Up 71% 74.2 150 112.5 58.3 59.4 100 50 43.7 39.9 50 0 0 04.4-12 05.4-12 3Q 4Q 1Q 2Q 3Q 04.10-12 05.1-3 05.4-6 05.7-9 05.9-12 Net Income (Year on Year Cha
Slide 23: 6. Supplemental Information: Assets, Debt & Shareholders' Equity
6. Supplemental Information: Assets, Debt & Shareholders’ Equity Operating Assets Total Assets (Billions of yen) (Billions of yen) 8,000 8,000 6,686.5 6,000 5,611.3 6,069.0 5,129.1 6,000 Up 9% Up 10% 4,000 4,000 2,000 2,000 0 0 2005.3 2005.12 2005.3 2005.12 Short- and Long-Term Debt & Deposits Share
Slide 24: 6. Supplemental Information: Key Financial Data
6. Supplemental Information: Key Financial Data (Billions of yen) Net Income & ROE (%) (Billions of yen) Total Assets & ROA (%) 150 25.0 8,000 Total Assets (left scale) 3.0 Net Income (left scale) ROA (right scale) 6,686.5 126.1 2.64 ROE (right scale) 6,350.2 120 20.0 (annualized) 5,931.1 6,069.0 6,
Slide 25: 6. Supplemental Information: Segment Profits
6. Supplemental Information: Segment Profits Business Expansion Improved Asset Quality Gains on Sales Stable Profit • Increase in revenues from • Lower provisions • Contribution from corporate loans and leases securitization of leases in Segments in Japan for the Corporate the Corporate Financial Co
Slide 26: 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/index_e.htm IR Website: URL: http://www.orix.co.jp/grp/ir_e/ir_index.htm Financial Reports: URL: http://www.orix.co.