Slide 1: ORIX Corporation Consolidated Financial Results
ORIX Corporation Consolidated Financial Results For the Consolidated Fiscal Year Ended March 31, 2024 Makoto Inoue Member of the Board of Directors Representative Executive Officer President & CEO Kazuki Yamamoto Operating Officer Corporate Function Unit Responsible for Corporate Planning, Investor
Slide 2: Net income & ROE
Net income & ROE ✓ Achieved record-high net income* of 346.1 Bln JPY (up 19% YoY), ROE of 9.2% ✓ 126.9 JPY Bln in Q4 net income, a new quarterly record high (surpassed FY22.3 Q4, when gain on sale of Yayoi was booked) * Net income refers to Net Income Attributable to ORIX Corporation Shareholders Fu
Slide 3: Breakdown of Segment Profits
Amended breakdown of segment profits of FY21.3 (August 8, 2024) Breakdown of Segment Profits FY24.3 367.6 Bln JPY up 14％ YoY (up 43.8 Bln JPY) Base Profits Inbound tourism-related businesses, insurance added to profits, growth at domestic PE investees also Segment profits contributed 494.2 Bln JPY +
Slide 4: Segment Profits
Segment Profits ✓ Domestic real estate, PE and concession segments performed well, booked investment gain on sale of partial stake in ORIX Credit ✓ Overseas segment profits lower due to a decline in investment gains, increased hedging cost burden for foreign-currency denominated investments (Bln JPY
Slide 5: Segment Assets
Segment Assets ✓ PE investment (equity + debt), Santoku Senpaku business succession, increased aircraft leasing exposure and new business executions in Asia and Australia contributed to growth in assets Overseas segment assets higher mainly due to changes in forex (598.7 Bln JPY out of 1.255 Tln JPY
Slide 6: FY24.3 Results
FY24.3 Results ✓ Recorded net income of 346.1 Bln JPY (up 19% YoY, 105% of target), achieved record high profit ✓ EPS of 299 JPY (up 21% YoY)、full fiscal year DPS of 98.6 JPY (up 13.0 JPY vs. FY23.3) Net income 60 Year Net Income Track Record (Bln JPY) (Bln JPY) FY24.3 Record profits +19% 105% 400.0
Slide 7: FY25.3 Forecast
FY25.3 Forecast ✓ Forecast FY25.3 net income of 390.0 Bln JPY (up 13% YoY), aim to achieve second consecutive year of record high profits ✓ Full-year EPS of 341 JPY (up 14% YoY), ROE of 9.6% FY25.3 Forecast (Bln JPY) FY23.3 FY24.3 FY25.3 Results Results Forecast Growth (YoY) Pre-tax profits 392.2 47
Slide 8: Reference: Final Year of Medium-term Outlook
Reference: Final Year of Medium-term Outlook Medium-term Outlook (Three Year) FY22.3 FY23.3 FY24.3 FY25.3 Results Forecast Results Forecast Results Forecast 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 share) 264 - 246 285 299 341 DPS (JPY per share) 85.6
Slide 9: Operating Climate: FY25.3 Direction
Operating Climate: FY25.3 Direction ✓ Aim to maintain growth trajectory in FY25.3, achieve second consecutive year of record high profits Operating climate FY25.3 Direction ✓ Rising geopolitical risk, “higher for longer” 1. Contribute to growth in industries, partner firms interest rates ✓ US Presid
Slide 10: Shareholder Returns: Hiking Dividend Payout Ratio
Shareholder Returns: Hiking Dividend Payout Ratio ✓ 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 ✓ Forecast full-year DPS of 133.2 JPY, EPS of 341 JPY (assuming net inc
Slide 11: Credit Ratings
Credit Ratings ✓ Continue dialogue with rating agencies to maintain and improve ratings ✓ Capital and financial strategies remain unchanged Credit ratings D/E Ratio & ROE (as at end-April 2024) D/E ratio (Excl. deposits) S&P BBB+ (Stable)* 3.8x 12.1% Moody’s A3 (Stable) 3.4x 11.5% 11.7% 11.6% 11.3%
Slide 12: Capital Allocation: ROA, ROE & ROTE
Capital Allocation: ROA, ROE & ROTE ✓ Insurance, Banking and Credit ROA over 1.0%, other segments’ ROA at 3.0% level after adjusting for non-recourse loans (NRL) ✓ Basic strategy is to allocate capital to assets likely to generate higher returns, aim to achieve high capital efficiency and healthy ca
Slide 13: Improving Share Price Valuation: After Reaching P/B 1.0x
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 ✓ Promoting communication between top management (including outside directors) an
Slide 14: Three Portfolio Categories: Finance, Operation, Investments
Three Portfolio Categories: Finance, Operation, Investments Three Categories Three Category/Segment Matrix Finance Operation Investments Corporate Financial Services and Corporate Financial Services Corporate Financial Services Auto, Rentec Maintenance Leasing (Financing business) (Business successi
Slide 15: FY25.3 Forecast: Three Categories
FY25.3 Forecas: Three Categories ✓ Aim to achieve FY25.3 pre-tax profits of 553.7 Bln JPY, up 83.7 Bln JPY (up 18% YoY) ✓ Finance: 198.0 Bln JPY, Operation: 230.4 Bln JPY, Investments: 195.8 Bln JPY, Headquarters & managerial expense: -70.5 Bln JPY Three Categories – Growth Strategies Three categori
Slide 16: Assets and ROA: Three Categories
Assets and ROA: Three Categories ✓ “Finance” positioned as earnings base, shift to asset manager model in “Operation” and promotion of capital recycling in “Investments” to boost profitability Finance Operation Investments ➢ ROA relatively low, as depends on financial ➢ Profitability recovering than
Slide 17: Capital Gains: Pipeline
Capital Gains: Pipeline ✓ FY24.3: Booked 150.0 Bln JPY*1 in investment gains, primarily from aircraft, ships, domestic PE sales ✓ FY25.3: Aim to achieve higher investment gains than FY24.3, through strengthening investments in inflation resistant areas such as aircraft 24.3 Results FY25.3 Forecast*２
Slide 18: Purpose and Culture
Purpose and Culture ✓ For ORIX Group’s 60th anniversary, aim to further promote sense of unity and increase in corporate value by accelerating adoption of ORIX Group Purpose and Culture 18 Copyright © ORIX Corporation All rights reserved.
Slide 19: Segment Information
Segment Information 19 Copyright © ORIX Corporation All rights reserved.
Slide 20: Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and Maintenance Leasing Segment profits: 81.2 Bln JPY YoY+6.2 Bln JPY （+8％） Segment assets: 1,552.3 Bln JPY YTD +38.3 Bln JPY （+3%） ✓ Corporate Financial Services: Fee businesses solid, M&A brokerage ✓ Corporate Financial Services: Remain careful in selecting new contrib
Slide 21: Corporate Financial Services and Maintenance Leasing - About the Business
Corporate Financial Services and Maintenance Leasing - About the Business Main business: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment Corporate Financial Services Auto Rentec World leader in vehicles under Leading equipment r
Slide 22: Real Estate
Real Estate Segment profits: 65.8 Bln JPY YoY+14.3 Bln JPY（+28％） Segment assets: 994.1 Bln JPY YTD +59.1 Bln JPY （+6%） ✓ RE Investment and Facilities Operation: Profits up sharply on strong ✓ Assets increased as new logistics facilities developed while actively performance of managed facilities fuel
Slide 23: Real Estate – About the Business
Real Estate – About the Business ✓ Main Business: Real estate development, rental and management; facility operation; real estate asset management Segment Assets Segment Asset Trends Unrealized gains on rental （as of end-March 2024） properties* DAIKYO Leased logistics facilities, condominiums, offic
Slide 24: PE Investment and Concession
PE Investment and Concession Segment profits: 43.4 Bln JPY YoY +40.5 Bln JPY (+1,429％) Segment assets: 772.8 Bln JPY YTD +167.4 Bln JPY (+28%) ✓ PE Investment: Enhanced profits led by several exits and profit contributions ✓ Assets higher on investment in and loan to Toshiba (LP investment: 100 Bln
Slide 25: PE Investment and Concession – About the Business
PE Investment and Concession – About the Business Currently invested in 18 companies (as of end-March 2024). Investment gains from sales are steadily increasing, along with the size of investments. Investment Track Record Investee Companies Leveraging our broad network and Initial experience, we hav
Slide 26: Environment and Energy
Environment and Energy Segment profits: 29.9 Bln JPY YoY -3.1 Bln JPY （-9％） Segment assets: 847.0 Bln JPY YTD +73.4 Bln JPY （+52.2 Bln JPY from forex） ✓ Domestic: Profits volatile depending on the quarter, but secured flat profit vs. ✓ Assets increased, mainly due to changes in forex year earlier le
Slide 27: Global Renewable Energy Portfolio
Global Renewable Energy Portfolio (as of end-March 2024*1) ✓ Total net owned operating capacity of 4.3 GW worldwide ✓ Total operating capacity (incl. assets in operation, under construction, and in development): Elawan 11 GW, Greenko 18 GW Spain & other locations China Japan USA & other locations ・E
Slide 28: Insurance
Insurance Segment profits: 70.0 Bln JPY YoY+7.0 Bln JPY （+11％） Segment assets: 2,309.4 Bln JPY YTD +258.9 Bln JPY （+86.9 Bln JPY from forex ） ✓ Significant profit increase due to reduction in COVID-related payout expenses ✓ Assets increased, mostly due to changes in forex and growth in investment re
Slide 29: 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, where the repriced whole life insurance RISE and US dollar-denominated whole-life insurance product Candle regained top ind
Slide 30: Banking and Credit
Banking and Credit Segment profits: 96.7 Bln JPY YoY+59.1 Bln JPY (+157+%) Segment assets: 2,733.0 Bln JPY YTD+34.3 Bln JPY (+1%) ✓ Banking: Profits up YoY as higher rates bolstered interest income from lending, ✓ Assets up thanks to expansion in merchant banking business, ongoing with only marginal
Slide 31: 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 ✓ By utilizing its trust banking license, ORIX Bank will develop and sell financial products, such as secu
Slide 32: Aircraft and Ships
Aircraft and Ships Segment profits: 26.8 Bln JPY YoY+8.2 Bln JPY （+44%） Segment assets: 1,058.4 Bln JPY YTD +315.5 Bln JPY （+ 97.4 Bln JPY from forex ） ✓ Aircraft: Profits up as passenger market continues to recover. Ships: Profits ✓ Aircraft: Assets higher due to changes in forex, aircraft purchase
Slide 33: Aircraft and Ships – About the Business
Aircraft and Ships – About the Business GLOBALLY NARROWBODY OEM DIVERSE WEIGHTING BREAKDOWN Owned Committed ORIX （NBV） （number of aircraft） （number of aircraft） fleet fleet Aviation 52 0 9% ✓ Fully-owned subsidiary 19% 28% Average age Average age ✓ Mainly trading in second- hand market 6.6 years 5.3
Slide 34: ORIX USA
ORIX USA Segment profits: 17.3 Bln JPY YoY -31.7 Bln JPY （-65%） Segment assets: 1,537.0 Bln JPY YTD +74.3 Bln JPY （+181.5 Bln JPY from forex ） ✓ Profits lower on absence of capital gains from last year’s PE exits, impairments ✓ Remain price sensitive and selective in underwriting new deals. USD- and
Slide 35: ORIX USA – About the Business
ORIX USA – About the Business ✓ A provider of capital and financing solutions to middle market companies in USA, targets growth in asset management for three key verticals (total AUM / AUA $75.4 Bln) ✓ Operates a hybrid strategy, investing own principal capital while providing capital market and ass
Slide 36: ORIX Europe
ORIX Europe Segment profits: 28.6 Bln JPY YoY-12.1 Bln JPY （-30%） Segment assets: 459.2 Bln JPY YTD +41.3 Bln JPY （+49.3 Bln JPY from forex ） ✓ Lower profits resulting from increased foreign currency-related hedging costs, ✓ Assets higher, mostly due to changes in forex but asset management fee inco
Slide 37: 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 38: Asia and Australia
Asia and Australia Segment profits: 34.3 Bln JPY YoY -0.6 Bln JPY （-2%） Segment assets: 1,587.5 Bln JPY YTD+192.4 Bln JPY （＋131.4 Bln JPY from forex） ✓ Profits flat vs. year ago, thanks to growth in lease assets in South ✓ Assets up YTD as a result of favorable new lease executions in Korea, Austral
Slide 39: Asia and Australia – About the Business
Asia and Australia – About the Business ✓ Leasing primarily for industrial equipment and automobile across Asia and Australia, as well as PE investment business mainly in Greater China Segment Assets by Business Trends of Segment Assets by major Country and Region （Bln JPY） Leases, Loans*1 Investmen
Slide 40: Appendices
Appendices 40 Copyright © ORIX Corporation All rights reserved.
Slide 41: ORIX by the Numbers
ORIX by the Numbers Strong profitability High growth Leading renewable energy Net income CAGR provider in Japan Net income ROE (FY13.3-FY24.3) Renewable energy generating Capacity (worldwide) *3 346.1 Bln JPY 9.2% 11％ 4.3GW Enhanced shareholder returns Well-balanced earnings*1 Top-class investment t
Slide 42: 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 42 Copyright © ORIX Corporation All rights reserved.
Slide 43: About ORIX Proven Track Record of Profitability
About ORIX Proven Track Record of Profitability ✓ Excluding founding year, ORIX has been profitable for 59 straight years (Bln JPY) 400.0 FY24.3 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 Asian currency 100.0 crisi
Slide 44: Capital Recycling – Profit Growth
Capital Recycling – Profit Growth (From FY23.3 H1 results presentation announced in Nov 2022 with some updates) ✓ Accelerating capital recycling model led to company-wide net income growth of 3.1X, CAGR of 11% (FY24.3 vs FY13.3) Yayoi RoadSafe Acquisition /new Primagest business Net Japan QRacian Ho
Slide 45: Capital Recycling: Large Transactions in FY24.3
Capital Recycling: Large Transactions in FY24.3 ✓ Partnership with ORIX Credit (sold 66% of shares) and NTT DOCOMO to support further growth ✓ Acquisition of Santoku Senpaku (bought 100% stake) to create synergies through utilization of both firms’ networks and expertise Support continued Develop in
Slide 46: Investment Gains and Major Breakdown
Amended investment gains of FY21.3 (August 8, 2024) Investment Gains and Major Breakdown (JPY) Segment FY18.3 FY19.3 FY20.3 FY21.3 FY22.3 FY23.3 FY24.3 42.9Bln 56.5Bln 53.6Bln 16.9Bln 21.4Bln 29.5Bln 34.1Bln Real Estate ORIX Golf Property under facilities ops., Mixed-use property ORIX Living Logisti
Slide 47: Investment Pipeline: FY25.3 and Beyond
Investment Pipeline: FY25.3 and Beyond ✓ Building portfolio capable of mid- to long-term stable growth by combining investments in variety of asset classes ◼ Mix of assets immediately accretive to profits vs. those requiring development period ◼ Mix of assets with long-term holding period vs. those
Slide 48: Growth Driver: Shift to Asset Manager Model
Growth Driver : Shift to Asset Manager Model ✓ 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 specialist knowledge in variety of asset classes and ori
Slide 49: ORIX Group – Asset Management Business
ORIX Group – Asset Management Business ✓ Expansion in asset management business centered on Europe and 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, c
Slide 50: Growth Driver: Inbound Tourism
Growth Driver: Inbound Tourism ✓ All three COVID-impacted businesses are recovering steadily and growing, expect to approach pre-COVID earnings level in FY25.3 with Aircraft and Ships in a main driver Kansai Airports (three airports) passenger numbers (vs. 2019) Segment profits trends Aircraft lease
Slide 51: Financials Funding Structure / Employed Capital Ratio
Financials Funding Structure / Employed Capital Ratio ✓ Diversified funding methods and maintained a high long-term debt ratio ✓ Maintained appropriate employed capital ratio through progress in capital recycling Funding Structure and Long-term Debt Ratio*1 Shareholders’ Equity / Employed Capital Ra
Slide 52: Financials Funding Structure
Financials Funding Structure ✓ Diversified funding. Controlled funding costs while maintaining a high long-term debt ratio Breakdown of Funding Trends in Funding Costs Foreign currency funding costs JPY funding costs Deposits 5.16% 27% Borrowings from End-FY24.3 3.57% financial 3.27% 3.28% 8.4 Tln J
Slide 53: ESG
ESG ✓ ORIX included in all six ESG indices (for Japanese stocks) adopted by Government Pension Investment Fund (GPIF) ✓ ORIX’s Board of Directors now has a majority of outside directors, making progress towards achievement of other key goals, including GHG emissions reductions Ratings/Scores by ESG
Slide 54: 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 55: ORIX Corporation Investor Relations
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