Slide 1: Third Quarter Consolidated Financial Results
ORIX Corporation Third Quarter Consolidated Financial Results For the Nine-Month Period Ended December 31, 2024 Kazuki Yamamoto Operating Officer Corporate Function Unit Responsible for Corporate Planning, Investor Relations and Sustainability February 10, 2025 1 Copyright © ORIX Corporation All rig
Slide 2: Executive Summary
Executive Summary (1) Q1-Q3 net income reached 271.8 Bln JPY (up 24% YoY, Q3: 88.8 Bln JPY), ROE of 9.0% (annualized) ‐ Record net income for 9-month period, achieved 70% progress towards full-year net income target of 390 Bln JPY (2) Q1-Q3 pre-tax profit was 383.4 bln JPY (up 24% YoY, Q3: 126.4 Bln
Slide 3: Net income & ROE Trends
Net income & ROE Trends ✓ 271.8 Bln JPY in net income (up 24%, 70% of full-year target), ROE of 9.0% (annualized) ✓ Steady earnings progress made through Q3, aim to achieve record net income for FY25.3 Full fiscal year Quarterly (Bln JPY) (Bln JPY) 9.6% 13.1% 13.2% 10.3% 10.0% 9.2% (Outlook) 10.6% 1
Slide 4: Three Categories: Progress to FY25.3 Forecast
Three Categories: Progress to FY25.3 Forecast ✓ Finance: Investment income higher in Insurance, leasing revenues rose in Australia and South Korea ✓ Operations: Recovery in asset management, airport concession earnings, contribution from Santoku Senpaku led to growth in pre-tax profits; Investments
Slide 5: Three Categories: Assets and ROA
Three Categories: Assets and ROA ✓ Within our 3 categories, we expect stable “Finance” earnings to be supported by changes in the macro climate, a recovery in domestic businesses and asset management in Europe to fuel growth in “Operation” and further promotion of capital recycling to drive stronger
Slide 6: Three Categories: Finance, Operation, Investments
Three Categories: Finance, Operation, Investments Three Categories Three Category/Segment Matrix Finance (Recurring earnings, interest rate spread is Operation Investments source of income) (All aspects of operation, including onsite) (Main area for capital recycling) Corporate Financial Services an
Slide 7: Capital Recycling
Capital Recycling ✓ Announced sale of partial stake in Ormat shares in Q3 and signing of share transfer agreement for Greenko Energy and new investment in AM Green* in Q4 ✓ Realized exits, primarily in “Investments” category. Steadily carrying out new investments while balancing asset sales 1Q-3Q FY
Slide 8: Segment Profits: 10 Segments
Segment Profits: 10 Segments ✓ Q1-Q3 segment profits were 427.5 Bln JPY ✓ PE and Concession, Aircraft and Ships segment profits rose, offsetting lower profits in Energy and Environment, ORIX USA. （Bln JPY） Segment Profits Breakdown FY25.3 *3 YoY Highlights Q1 Q2 Q3 QoQ Q1-Q3 （Q１-Q3） Overseas Corpora
Slide 9: Segment Assets: 10 Segments
Segment Assets: 10 Segments ✓ Segment assets were 16.5 Tln JPY (up 456.3 JPY Bln vs. end-FY24.3, +188.6 Bln JPY due to changes in forex) ✓ Aircraft acquisitions, new loan executions in ORIX Bank merchant banking business increased Segment Assets Breakdown (Bln JPY) Overseas ２5.３ YTD ROA*2 Highlights
Slide 10: Macro Climate and Current Direction
Macro Climate and Current Direction ✓ Impact of developments in US unclear, but will utilize diversified business portfolio to move forward with new investment/financing and exit opportunities while weighing risks Macro Climate Direction US Impact of Trump administration policies on various Finance
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 profits (Q1-Q3): 66.2 Bln JPY YoY +5.6 Bln JPY（+9％） Segment assets: 1,840.2 Bln JPY YTD +62.9 Bln JPY（+4％） ✓ Corporate Financial Services: Profits up on solid fee businesses (incl. real estate ✓ Corporate Financial Services assets higher o
Slide 13: Corporate Financial Services and Maintenance Leasing - About the Business
Corporate Financial Services and Maintenance Leasing - About the Business ✓ Corporate Financial Services is ORIX’s core group relationship management (RM) platform, backed by strong regional presence and solid customer base ✓ Segment includes Auto, world leader in vehicles under management; Rentec,
Slide 14: Real Estate
Real Estate Segment profits (Q1-Q3) : 59.7 Bln JPY YoY+7.4 Bln JPY（+14％） Segment assets: 1,152.1 Bln JPY YTD +42.0 Bln JPY（+4％） ✓ RE Investment and Facilities Operation: Profits up sharply on sale of large ✓ Despite several large projects (incl. Umekita development, MICE-IR) multi-purpose building (
Slide 15: Real Estate – About the Business
Real Estate – About the Business ✓ Carries out real estate development, rental and management; facilities operation; real estate asset management ✓ Segment assets stable at around 1 Tln JPY, AUM has grown to 1.7 Tln JPY. Generate stable earnings by increasing recurring income, such as through the la
Slide 16: PE Investment and Concession
PE Investment and Concession Segment profits (Q1-Q3) : 66.2 Bln JPY YoY+42.8 Bln JPY（+184％) Segment assets: 981.8 Bln JPY YTD -84.8 Bln JPY（-8％） ✓ PE investment: Profits up sharply thanks to higher profits from existing ✓ Assets lower, primarily on sale of Sasaeah Holdings investees including DHC, T
Slide 17: PE Investment and Concession – About the Business
PE Investment and Concession – About the Business ✓ Currently invested in 17 companies (as of end-December 2024). Investment gains from sales are steadily increasing, along with the size of investments. Investment Track Record Investee Companies Leveraging our broad network and experience, we have e
Slide 18: Environment and Energy
Environment and Energy Segment profits (Q1-Q3) : 13.2 Bln JPY YoY-12.7 Bln JPY（-49％） Segment assets: 955.0 Bln JPY YTD -21.4 Bln JPY （＋7.2 Bln JPY from forex） ✓ Domestic: Higher costs for rebuilding existing facilities, profit margins worsen ✓ Assets lower on partial sale of Ormat stake in power ret
Slide 19: Global Renewable Energy Portfolio
Global Renewable Energy Portfolio (as of end-Dec 2024*1) ✓ Total net owned operating capacity of 4.5 GW worldwide ✓ Total operating capacity (incl. assets in operation, under construction, and in development): Elawan 14 GW, Greenko 18 GW Spain & other locations China Japan USA & other locations •Ela
Slide 20: Insurance
Insurance Segment profits (Q1-Q3) : 61.7 Bln JPY YoY+7.7 Bln JPY（+14％） Segment assets: 3,005.3 Bln JPY YTD+ 83.4 Bln JPY （+29.6 Bln JPY from forex） ✓ Strong investment income on increase in investment assets ✓ Assets higher on increase in investment assets due to ongoing replacement of part of inves
Slide 21: Life Insurance – About the Business
Life Insurance – About the Business ✓ Business model shifted from one dominated by sales of third-sector products (such as medical insurance) to a more well- balanced portfolio with introduction of first-sector products, which have higher contract values ✓ Investment income increasing on steady dive
Slide 22: Banking and Credit
Banking and Credit Segment profits (Q1-Q3) : 22.1 Bln JPY YoY-5.3 Bln JPY（-19％） Segment assets: 3,060.8 Bln JPY YTD+126.6 Bln JPY（+4％） ✓ Banking: Higher financial revenues driven by increase in interest ✓ Banking: Assets up on growth in merchant banking business rates ✓ Credit: Profits fell on lower
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 ✓ Aims to achieve sustainable growth and improve ROA while controlling quality, size of asset base, by uti
Slide 24: Aircraft and Ships
Aircraft and Ships Segment profits (Q1-Q3) : 44.6 Bln JPY YoY+15.6 Bln JPY（+54%） Segment assets: 1,325.6 Bln JPY YTD +156.0 Bln JPY (+44.6 Bln JPY from forex） ✓ Aircraft: Profits up on higher lease revenue fueled by growing ✓ Assets higher on new ship lease executions and aircraft demand for air tra
Slide 25: Aircraft and Ships – About the Business
Aircraft and Ships – About the Business (as of end-December 2024) ORIX Aviation (Business since 1978) Owned, Managed, and Committed Fleet Wide body EMEA APAC 16% Average age 27% 23% 113 Managed Fleet 139 151 152 6.6 years 148 GLOBALLY Boeing 141 144 NARROWBODY 46% OEM BREAKDOWN DIVERSE WEIGHTING (fo
Slide 26: ORIX USA
ORIX USA Segment profits (Q1-Q3) : 27.8 Bln JPY YoY-7.8 Bln JPY （-22%） Segment assets: 1,694.0 Bln JPY YTD -0. 5 Bln JPY （+72.5 Bln JPY from forex） ✓ Private Credit: Business earnings remain strong when year-earlier ✓ USD-denominated asset total shrank gain on sale is excluded ✓ Continuing efforts t
Slide 27: ORIX USA – About the Business
ORIX USA ✓ A provider of capital and financing solutions to middle market companies in USA, targets growth in asset management for three verticals (total AUM / AUA $76.0 Bln) ✓ Operates a hybrid strategy, investing own principal capital while providing capital market and asset management solutions t
Slide 28: ORIX Europe
ORIX Europe Segment profits (Q1-Q3) : 38.1 Bln JPY YoY+7.7 Bln JPY（+25%） Segment assets: 715.6 Bln JPY YTD+53.5 Bln JPY（+7.3 Bln JPY from forex） ✓ AUM reached 379 Bln EUR, achieving a record high for a second ✓ Assets up on increase in cash and cash equivalents straight quarter and leading to higher
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 profits (Q1-Q3) : 27.9 Bln JPY YoY-2.1 Bln JPY（-7%） Segment assets: 1,747.9 Bln JPY YTD+38.7 Bln JPY（+27.4 Bln JPY from forex） ✓ Lease revenue rose in South Korea, India, Australia ✓ Leasing balances up, mainly in Australia, South Korea ✓ Economic conditions in Greater Chi
Slide 31: Asia and Australia – About the Business
Asia and Australia – About the Business ✓ Leasing primarily for industrial equipment and automobiles across Asia and Australia, as well as PE investment business mainly in Greater China (Bln JPY) Segment Assets by Business Segment Asset Trends by Major Country and Region 1 South Korea 2 China 3 Aust
Slide 32: Appendices
Appendices 32 Copyright © ORIX Corporation All rights reserved.
Slide 33: ORIX by the Numbers
ORIX by the Numbers *All figures based on FY24.3 or end-FY24.3 data unless otherwise indicated. Strong profitability High growth Leading renewable energy 11-year net income CAGR provider in Japan Net income ROE (FY13.3-FY24.3) Renewable energy generating Capacity (worldwide) *2 346.1 Bln JPY 9.2% 11
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 ✓ ORIX has been profitable for 59 straight years Net Income Attributable to ORIX Corporation Shareholders FY24.3 400.0 Record profits 350.0 FY21.3 COVID pandemic 300.0 250.0 FY09.3 Global financial crisis 200.0 FY02.3 IT bubble bursts 150.0 FY98.3 FY93
Slide 36: Reference: Final Year of Medium-term Outlook
Reference: Final Year of Medium-term Outlook (From FY24.3 results presentation announced in May 2024) Medium-term Outlook (Three Year) FY22.3 FY23.3 FY24.3 FY25.3 Results Targets Results Targets Results Targets Net income (Bln JPY) 317.4 250.0 290.3 （273.1）*1 330.0 346.1 390.0 （400.0）*2 EPS (JPY per
Slide 37: Shareholder Returns
Shareholder Returns ✓ FY25.3 shareholder return policy: Pay out 39% of net income to dividends, set share buyback program of 50.0 Bln JPY, allocate remainder to internal reserves and new investments ✓ Completed share buyback program (50.0 Bln JPY), cancelled all treasury stock exceeding 2% of total
Slide 38: Improving Share Price Valuation (Corporate Value)
Improving Share Price Valuation (Corporate Value): After Reaching P/B 1.0x ✓ Position strengthening corporate value through profit-driven ROE improvement as core strategy, emphasis on EPS through ongoing share buybacks ✓ Discuss feedback from investor meetings with Board of Directors, monitor ROE tr
Slide 39: Capital Recycling Profit Growth
Capital Recycling Profit Growth ✓ Accelerating capital recycling model led to company-wide net income growth of 3.1X, CAGR of 11% (FY24.3 vs FY13.3) Yayoi RoadSafe Panasonic Projector & Acquisition Display Corporation /new Primagest business Sasaeah HD (Fujita Pharmaceutical, Kyoto Biken) Houlihan O
Slide 40: Breakdown of Segment Profits: Base Profits and Investment Gains
Breakdown of Segment Profits: Base Profits and Investment Gains Base 338.2 Bln JPY up 8% YoY (+24.2 Bln JPY) FY25.3 Q1-Q3 profits Base profits higher on contributions from domestic PE investees, Santoku Senpaku, Segment profit stronger performance in aircraft leasing, ORIX Europe 427.5 Bln JPY +16%
Slide 41: Investment Gains and Major Breakdown
Investment Gains and Major Breakdown (JPY) Segment FY18.3 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3 FY24.3 42.9 Bln 56.5 Bln 53.6 Bln 16.9 Bln 21.4 Bln 29.5 Bln 34.1 Bln Real Estate ORIX Golf Property under facilities ops., Mixed-use property ORIX Living, etc. Logistics centers logistics centers Management
Slide 42: Investment Pipeline
Investment Pipeline Business Investment amount Pipeline Type of investment Large number of business succession deals, carve out, take private deals in play Immediately accretive Domestic PE 350.0 Bln JPY~ Announced investment in Panasonic Projector & Display Corporation Intent to sell Overseas renew
Slide 43: Segment profits trends
Inbound Tourism Kansai Airports (three airports) Aircraft lease rates (000 USD ） Segment profits trends 120% passenger numbers (vs. 2019 113% 400 (Aircraft and Ships, Facilities operations, Concession) Domestic 400 Airbus A320 Neo (3 airport total) 319 273 399 80% 98% 300 Boeing 737 Max8 27.1 310 52
Slide 44: Financials: Funding Structure and Interest Rate/Forex Sensitivity
Financials: Funding Structure and Interest Rate/Forex Sensitivity ✓ Diversified funding structure ✓ Controlled funding costs while maintaining a high long-term debt ratio Funding Structure Trends in Funding Costs Interest Rate/Forex Sensitivity Interest rates Deposits Borrowings from 27% financial ◼
Slide 45: Financials: D/E Ratio, ROE, Employed Capital Ratio, Ratings
Financials: D/E Ratio, ROE, Employed Capital Ratio, Ratings ✓ Maintained appropriate employed capital ratio through progress in capital recycling Shareholders’ Equity / D/E Ratio, ROE Credit ratings Employed Capital Ratio*1 4.6X D/E ratio 4.5X (excl. deposits) 94% Employed 93% 91% 88% capital ratio
Slide 46: Growth Driver: Shift to Asset Manager Model
Growth Driver: Shift to Asset Manager Model (From FY24.3 results presentation announced in May 2024) ✓ Will shift to an asset manager model, as size of investments increases. Aim for AUM of 100 Tln JPY (69 Tln JPY AUM as of end-FY24.3*1) ✓ Goal to be pursuit of profit margins, by further sharpening
Slide 47: 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 48: ESG: Ratings
ESG: Ratings ✓ ORIX’s Board of Directors now has a majority of outside directors, making progress towards achievement of other key goals, including GHG emissions reductions ✓ Enhanced human capital management-related disclosure in 2024 Integrated Report * 2024 Integrated Report is here Improved Rati
Slide 49: 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 50: 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