Orix Corporation · TSE:8591
Orix — FY2013 Earnings Presentation
40 slides from Orix's earnings presentation, May 10, 2013
Slide 1: Consolidated Financial Results for the Fiscal Year Ended March 31, 2013
ORIX Corporation (TSE: 8591; NYSE: IX) Consolidated Financial Results For the Consolidated Fiscal Year Ended March 31,, 2013 May 10, 2013 Haruyuki Urata Deputy President & CFO Shintaro Agata Corporate Executive Vice President, Head of the Treasury Headquarters Takao Kato Corporate Senior Vice Presid
Slide 2: Disclaimer
Disclaimer These materials have been prepared by ORIX O Corporation C (“O (“ORIX” or the “Company”) “C ) solely ffor your information f 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
Slide 3: Contents
Contents I. Overview P.3 II. Future Direction P.5 III. Segment Results and Strategies P.7 IV Major IV. M j IInvestment t t Activities A ti iti P 15 P.15 V. Summaryy P.16 Appendix Copyright © 2013 ORIX Corporation All rights reserved. 2
Slide 4: I. Overview
I. Overview FY13.3 Achieved 111.9bn yen in Net Income, up 34%YoY Announced acquisition of Robeco Increase dividends from 90 to 130 yen FY14.3 Aim for 135bn yen in Net Income (21% increase) （JPY Bn） *Net Income refers to Net Income Attributable to ORIX Corporation Shareholders Per share data has been
Slide 5: Status of Shareholders' Equity
I. Overview Status of Shareholders’ Equity Approx. 100bn yen added due to conversion of convertible bonds Put to active and effective use as source for next growth Employed p y Capital p Ratio and ROE （JPY Bn） （Forecast） Copyright © 2013 ORIX Corporation All rights reserved. 4
Slide 6: II. Future Direction: Acquisition of Robeco
II. Future Direction Acquisition of Robeco Acquisition of world’s leading AM Company Acceleration of “Finance + Services” Further expansion of global business foundation Europe Americas Asia ORIX Office Middle East Robeco Office p Japan Copyright © 2013 ORIX Corporation All rights reserved. 5
Slide 7: II. Future Direction
II. Future Direction Increase I investments i t t that th t match t h “Finance “Fi + Services,” S i ” both domestically and overseas Take good risks nimbly by enhancing expertise Create new market while shifting to new battleground Aim to achieve 10% ROE in FY16.3 Copyright © 2013 ORIX Corpora
Slide 8: Segment Profits
III. Segment Results and Strategies Segment Profits All segments increased profits, Investment and Operation and Retail significantly grew profits in FY13.3 Trend in Segment Profits （JPY Bn） （T （Target） ） Copyright © 2013 ORIX Corporation All rights reserved. 7
Slide 9: Segment Assets
III. Segment Results and Strategies Segment Assets Increases in Maintenance Leasing, Retail, and Overseas Business Trend in Segment Assets （JPY Bn） B ） (Forecast) Copyright © 2013 ORIX Corporation All rights reserved. 8
Slide 10: 1. Corporate Financial Services
1. Corporate Financial III. Segment Results and Strategies Services （JPY Bn） Base Revenue Breakdown* (FY13.3) Examples of service related revenues - Solar panel sales - Insurance agency commission * ”Base Revenues” = Base profit before deduction of SGA - Interest related revenues: Includes direct fi
Slide 11: 2. Maintenance Leasing
III. Segment Results and Strategies 2. Maintenance Leasing （JPY Bn） Base Revenue Breakdown (FY13.3) Examples of service related revenues - Maintenance revenues - Rental revenues Further F th expand d customer t base b and d scale Promote streamlining of operations and enhance cost control Main
Slide 12: 3. Real Estate
III. Segment Results and Strategies 3. Real Estate （JPY Bn） Base Revenue Breakdown (FY13.3) Examples of service related revenues - Real estate rental revenues - Facility operation revenues Increase I base b profit fit mainly i l th through h reall estate operating business Expand fee revenues le
Slide 13: 4. Investment & Operation
III. Segment Results and Strategies 4. Investment & Operation （JPY Bn） Base Revenue Breakdown (FY13.3) Examples of service related revenues - Loan servicing fee - Solar panel sales Increase I revenues from f environment i t and energy business Expand active investment both domestically and overs
Slide 14: 5. Retail
III. Segment Results and Strategies 5. Retail （JPY Bn） Base Revenue Breakdown (FY13.3) Examples of service related revenues - Life insurance premiums Increase card loan balance Expand sector and scale of life insurance operation Copyright © 2013 ORIX Corporation All rights reserved. 13
Slide 15: 6. Overseas Business
III. Segment Results and Strategies 6. Overseas Business （JPY Bn） Base Revenue Breakdown (FY13.3) Examples of service related revenues - M&A advisory fee - Aircraft operating lease revenues U.S.: Continue to enhance fee business Asia: Expand assets, capture economic growth Securely close Robec
Slide 16: IV. Major Investment Activities
IV. Major Investment Activities July 2012 Japan August 2013 Global April 2012 Japan Dec. 2012 Japan (Plan) ORIX Credit Robeco KINREI Net Protections Card Loan Business Asset Management Manufacturing of E-Commerce Business Frozen Foods and Deferred Payment Restaurant Operation Clearance Service Dec.
Slide 17: V. Summary
V. Summary Increase investments that match “Finance + Services,” both domestically and overseas Take good risks nimbly by enhancing expertise Create new market while shifting to new battleground FY14.3 Net Income Target 135bn yen FY16.3 Aim to achieve 10% ROE Copyright © 2013 ORIX Corporation
Slide 18: Appendix
Appendix ppe d Copyright © 2013 ORIX Corporation All rights reserved. 17
Slide 19: Appendix(1) Trend in Performance
Appendix(1) Trend in Performance （JPY Bn） *1 1 Net Income Attributable to ORIX Corporation Shareholders *2 Performance indicators shown are Non-GAAP financial measures. For a qualitative reconciliation of the most directly comparable financial measures calculated and presented in accordance with U.S
Slide 20: Appendix(2) Profit by Segment
Appendix(2) Profit by Segment （JPY Bn） 11.3 12.3 13.3 Change Corporate Financial Services 10.0 21.5 24.8 115% Maintenance Leasing 26 2 26.2 34 7 34.7 36 1 36.1 104% Real Estate 0.1 1.3 5.6 414% Investment and Oparation 13.2 16.0 34.9 219% Retail 21.8 19.4 43.2 223% Overseas Business 45.6 49.8 52.8 1
Slide 21: Appendix(3) Assets by Segment & Region
Appendix(3) Assets by Segment & Region （JPY Bn） ■ Overseas Business Segment Assets by Region Copyright © 2013 ORIX Corporation All rights reserved. 20
Slide 22: Appendix(4) Funding and Liquidity
Appendix(4) Funding and Liquidity （JPY Bn） *1 Marketable Short-term Debt is the total of bonds and MTN expected p to reach maturity y within 1 yyear and the balance of CP. *2 Performance indicator is a Non-GAAP financial measure. For a qualitative reconciliation of the most directly comparable finan
Slide 23: Appendix(5) Segment Performance - 1
Appendix(5) Segment Performance - 1 Corporate Financial Services Maintenance Leasing Copyright © 2013 ORIX Corporation All rights reserved. 22
Slide 24: Appendix(6) Segment Performance - 2
Appendix(6) Segment Performance - 2 Real Estate Investment & Operation Copyright © 2013 ORIX Corporation All rights reserved. 23
Slide 25: Appendix(7) Segment Performance - 3
Appendix(7) Segment Performance - 3 Retail Overseas Business Copyright © 2013 ORIX Corporation All rights reserved. 24
Slide 26: Appendix(8) Real Estate Portfolio
Appendix(8) Real Estate Portfolio ■ Trend in Real Estate Segment Assets by Type （JPY Bn） * 40.8bn of NRL/specified bonds held by domestic Group companies not included (As of Mar. 2013) ■ NOI Yield and Vacancy Rate Trends ■ Trend in Amount of Rental Property Sales Copyright © 2013 ORIX Corporation Al
Slide 27: Appendix(9) Real Estate Portfolio
Appendix(9) Real Estate Portfolio （JPY Bn） ■ Rental Property Assets by Type (13.3) ■ Rental Property Assets by Region (13.3) Copyright © 2013 ORIX Corporation All rights reserved. 26
Slide 28: Appendix(10) Asset Quality
Appendix(10) Asset Quality ■ Asset Quality (Adjusted **) （JPY Bn） *1 *1 Of the 168.1bn in loans individually evaluated for impairment, 104.0bn is fully covered by collaterals such as real estate. Including 52.2bn in provisions, 92.9% is fully covered *2 (90+ Days Past-Due Direct Financing Leases + 9
Slide 29: Appendix(11) Reconciliation Table of Non-GAAP Financial Measurement
Appendix(11) Reconciliation Table of Non-GAAP Financial Measurement These materials include certain financial measures presented on a basis not in accordance with U.S. GAAP, or non-GAAP measures, including total assets and long-term liabilities excluding liabilities in line with securitized transact
Slide 30: Appendix(12) Reconciliation Table of Non-GAAP Financial Measurement
Appendix(12) Reconciliation Table of Non-GAAP Financial Measurement （JPY Bn） Copyright © 2013 ORIX Corporation All rights reserved. 29
Slide 31: Appendix(13) Reconciliation Table of Non-GAAP Financial Measurement
Appendix(13) Reconciliation Table of Non-GAAP Financial Measurement （JPY Bn） *1 Base Profit = Segment Profit – Capital Gains – Provisions – Impairments *2 Brokerage commissions and net gains (losses) on investment securities, real estate sales (net of cost), gains (losses) on sales of real estate un
Slide 32: Reference Data
Reference e e e ce Data ata Copyright © 2013 ORIX Corporation All rights reserved. 31
Slide 33: Macro Economic Indicators
Macro Economic Indicators National CPI (Ex Fresh Food) (YoY Change) (% Change) Source: Bloomberg Copyright © 2013 ORIX Corporation All rights reserved. 32
Slide 34: Japanese Corporate Indices
Japanese Corporate Indices Corporate Bankruptcies Tankan Corporate (Quarterly Basis) Diffusion Index (JPY Tn) (Cases) Source: Teikoku Databank, Ltd. Source: Bank of Japan Copyright © 2013 ORIX Corporation All rights reserved. 33
Slide 35: Japanese Real Estate Indicators
Japanese Real Estate Indicators Japan p TSE REIT Index Office Rental Rates (Yen per 3.3㎡) Source: Tokyo Stock Exchange Source: CBRE Copyright © 2013 ORIX Corporation All rights reserved. 34
Slide 36: Domestic Lease Business Indicators
Domestic Lease Business Indicators Private Equipment Investment New Car Sales (JPY Bn) (1,000 Units) 90,000 12.0% 7,000 14.0% 80,000 6,000 12.0% 10.0% 70,000 5,000 10.0% 60,000 8.0% 50 000 50,000 4,000 , 8.0% 6.0% 40,000 3,000 6.0% 30,000 4.0% 2,000 4.0% 20,000 2 0% 2.0% 1 000 1,000 2 0% 2.0% 10,000
Slide 37: Other Domestic Indicators
Other Domestic Indicators Trend in Domestic Supply of Domestic Shipping Amount of Solar Cell Renewable Energy （Primary Energy Supply Basis） (Petajoule) (MW) Source: Agency for Natural Resources and Energy Source: Japan Photovoltaic Energy Association Copyright © 2013 ORIX Corporation All rights rese
Slide 38: Other Domestic Indicators
Other Domestic Indicators The number of M&A (Cases) Source: RECOF Corporation Copyright © 2013 ORIX Corporation All rights reserved. 37
Slide 39: Other Domestic Indicators
Other Domestic Indicators Retail Life Insurance Consumer Finance Loans (JPY Bn) (JPY Bn) 25,000 20,000 15,000 10,000 5,000 0 2000 2002 2004 2006 2008 2010 Retail Life f Insurance Premiums Source: Japan Statistics Bureau Source: Japan Financial Services Agency Copyright © 2013 ORIX Corporation All ri
Slide 40: Additional Information
Additional Information For annual and more historical data please access our website. A list of major disclosure materials is given below. ORIX W Website: b it URL: htt URL http://www.orix.co.jp/grp/en/ // i j / / / IR Website: URL: http://www.orix.co.jp/grp/en/ir/ If you would ld like lik tto b be