Orix Corporation · TSE:8591
Orix — Q1 FY2007 Earnings Presentation
26 slides from Orix's earnings presentation, Aug 11, 2006
Slide 1: Fiscal 2007 1Q Conference Call
Fiscal 2007 1Q Conference Call August 11, 2006
Slide 2: ORIX Corporation Conference Call
ORIX Corporation (TSE: 8591; NYSE: IX) Conference Call First Quarter Consolidated Financial Results For the Three Month Period April 1-June 30, 2006 (August 11, 2006) Shunsuke Takeda, Vice Chairman & CFO Tadao Tsuya, Executive Officer & Head of the Accounting Department Raymond Spencer, Senior Manag
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: Contents
Contents 1. Overview of First Quarter Results (Shunsuke Takeda, Vice Chairman & CFO) 2. Overview of Segment Results (Tadao Tsuya, Executive Officer & Head of the Accounting Department) 3. Supplemental Information Copyright © 2006 ORIX Corporation. All rights reserved. 3
Slide 5: Overview of First Quarter Results
1. Overview of First Quarter Results —Net Income up 25% Year-on-Year Marking the Highest Quarterly Profit to Date— Net Income (YoY Change) 60 (Billions of yen) Up 25% (9.3 Billon yen) Main Points 50 47.1 Corporate lending steady in 37.8 Japan and overseas 40 Expansion of real estate 30 operation
Slide 6: Segment Profits
2. Overview of Segment Results: Segment Profits Large Increase in Contribution from Real Estate-Related Finance and Real Estate Segments (Billions of yen) Segment Profits* (Year-on-Year Change) Total Stable Profit Segments Corporate Financial 11.1 (-0.3) Services 1.3(-0.3) 25.1 (+2.9) Rental Operati
Slide 7: Corporate Financial Services Segment
2. Overview of Segment Results: Stable Profit Segments Corporate Financial Services Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Leases, loans and the YoY Change 11.4 11.1 sale of financial products Expansion of Flat corporate loans Segment Assets (Billions of yen)
Slide 8: Rental Operations Segment
2. Overview of Segment Results: Stable Profit Segments Rental Operations Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Precision measuring equipment rentals and YoY Change IT-related equipment Precision rentals and leases Down 22% measuring 1.6 1.3 and other Segment
Slide 9: Life Insurance Segment
2. Overview of Segment Results: Stable Profit Segments Life Insurance Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Life insurance sales YoY Change Life insurance Down 30% premiums flat 1.6 1.1 year on year Segment Assets (Billions of yen) Decrease in 05.6 06.6 li
Slide 10: Asia, Oceania and Europe Segment
2. Overview of Segment Results: Stable Profit Segments Asia, Oceania and Europe Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Leases, loans, automobile YoY Change 11.6 leases, ship finance, and 7.6 Steady aircraft leases automobile Up 54% leasing operations Segment
Slide 11: Automobile Operations Segment
2. Overview of Segment Results: Accelerated Growth Segments Automobile Operations Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Automobile leasing and YoY Change automobile rentals Increase in 6.3 6.3 revenues and Flat expenses from operating leases Segment Assets (
Slide 12: Real Estate-Related Finance Segment
2. Overview of Segment Results: Accelerated Growth Segments Real Estate-Related Finance Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Corporate finance, YoY Change housing loans, loan 10.6 Contribution to servicing, and 6.9 revenues from securitization Up 54% corpor
Slide 13: Real Estate Segment
2. Overview of Segment Results: Accelerated Growth Segments Real Estate Segment Segment Outline Segment Profits (Billions of yen) 20.7 Year-on-Year Change Condominium development, office building development, investment, and YoY Change rental, hotel and golf course operation, 12.8 integrated facilit
Slide 14: Other Segment
2. Overview of Segment Results: Future Growth Segments Other Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Principal investments, YoY Change venture capital, card loans, and securities 11.0 Increase in gains on 8.2 investment brokerage securities at the Up 34% ventu
Slide 15: The Americas Segment
2. Overview of Segment Results: Future Growth Segments The Americas Segment Segment Outline Segment Profits (Billions of yen) Year-on-Year Change Investment banking, YoY Change corporate finance, and real estate-related Down 28% Strong operations 7.2 5.2 performance at Houlihan Lokey Segment Asset
Slide 16: Supplemental Information
3. Supplemental Information
Slide 17: Overview of Fiscal 2007 1Q Results
3. Supplemental Information: Overview of Fiscal 2007 1Q Results (Millions of yen) 2006.4-6 2005.4-6 Yoy Change Yoy Change Total Revenues 273,839 215,776 58,063 Up 27% Total Expenses 203,815 165,985 37,830 Up 23% Income before Income Taxes (IBIT)* 79,779 58,513 21,266 Up 36% Net Income 47,103 37,789
Slide 18: Revenues & Expenses
3. Supplemental Information: Revenues & Expenses Revenues Revenues (Quarterly Trend) (Billions of yen) (Billions of yen) 300 273.8 300 266.9 273.8 215.8 232.7 228.1 250 215.8 250 200 200 150 Up 27% 150 100 100 50 50 0 0 05.4-6 06.4-6 05.4-6 05.7-9 05.10-12 06.1-3 06.4-6 Expenses Expenses (Quarterly
Slide 19: IBIT & Net Income
3. Supplemental Information: IBIT & Net Income IBIT IBIT (Quarterly Trend) (Billions of yen) (Billions of yen) 90 79.8 90 79.8 80 74.7 80 70 59.8 70 58.5 58.8 58.5 60 60 50 50 40 40 Up 36% 30 30 20 20 10 10 0 0 05.4-6 06.4-6 05.4-6 05.7-9 05.10-12 06.1-3 06.4-6 Net Income Net Income (Quarterly Trend
Slide 20: Assets, Debt & Shareholders' Equity
3. Supplemental Information: Assets, Debt & Shareholders’ Equity (Billions of yen) Operating Assets (Billions of yen) Total Assets 8,000 7,242.5 7,223.6 8,000 5,858.3 5,981.4 6,000 6,000 Flat Up 2% 4,000 4,000 2,000 2,000 0 0 2006.3 2006.6 2006.3 2006.6 Short- and Long-Term Debt & Deposits Sharehold
Slide 21: Key Financial Data
3. Supplemental Information: Key Financial Data (Billions of yen) Net Income & ROE (%) (Billions of yen) Total Assets & ROA (%) 200 25.0 8,000 Total Assets (lhs) 3.0 19.8 7,242.5 7,223.6 Net Income (lhs) ROA (rhs) ROE (rhs) 166.4 19.4 * 5,931.1 6,069.0 20.0 6,000 5,625.0 2.5 2.6 * 150 14.2 2.0 15.0
Slide 22: Stable Profit Segments
3. Supplemental Information: Stable Profit Segments Principal Group Segment Principal Business Principal Revenue Corporation ORIX ORIX Alpha Leasing, Lending, Other Direct Financing Leases, Corporate Financial Services Operating Leases, Interest on Momiji Lease Financial Loans and Investment Nittets
Slide 23: Accelerated Growth Segments
3. Supplemental Information: Accelerated Growth Segments Principal Group Segment Principal Business Principal Revenue Corporation Direct Financing Leases, Automobile Automobile Leasing & ORIX Auto Operating Leases, Other Operations Rentals Operating Revenues Interest on Loans and ORIX Investment Sec
Slide 24: Future Profit Segments
3. Supplemental Information: Future Profit Segments Principal Group Segment Principal Business Principal Revenue Corporation ORIX Interest on Loans and ORIX Capital Investment Securities, Principal Investment, Brokerage Commissions and Other ORIX Credit Venture Capital, Card Loans, Net Gains on Inve
Slide 25: Recent News Releases
3. Supplemental Information: Recent News Releases Date Title Segment ORIX Announces Investment in Nationwide Haircut Specialist 2006/8/1 Other QB House 2006/7/13 ORIX Announces Capital Tie-Up Agreement with JCB Corporate Financial Services 2006/6/28 ORIX Australia Acquires Daikyo Group Assets in Aus
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.