Slide 1: Second Quarter Consolidated Financial Results
ORIX Corporation Second Quarter Consolidated Financial Results For the Six-Month Period Ended September 30, 2024 Makoto Inoue Member of the Board of Directors Representative Executive Officer President & CEO November 8, 2024 1 Copyright © ORIX Corporation All rights reserved.
Slide 2: Net income & ROE
Net income & ROE ✓ 257.0 Bln JPY in pre-tax profits, 182.9 Bln JPY in net income* for H1 FY25.3 (up 42.8% YoY, 46.9% of full- year target). Recorded highest-ever H1 profits, ROE of 9.3% (annualized) ✓ 96.2 Bln JPY in Q2 net income (up 31.1 Bln JPY vs. Q2 FY24.3) Full fiscal year Quarterly (Bln JPY)
Slide 3: Progress toward FY25.3 Forecast: Three Categories
Progress toward FY25.3 Forecast: Three Categories ✓ Finance, Operation, and Investments all achieved steady progress for H1 (Bln JPY) H1 Results Full year forecast % of FY25.3 YoY Forecast 23.9 24.3 Gain on sale of Actual 93.2 -0.4 Actual 176.9 ORIX Credit Finance （-0.4%） 47％ 25.3 金融24.9 92.8 金融 For
Slide 4: Three Categories Progress, Finance
Three Categories Progress, Finance ✓ H1 Finance category profits of 92.8 Bln JPY (down 0.4% YoY), mostly in line with expectations ✓ Insurance posted healthy investment income, expect Finance category to achieve higher profits YoY for full-FY25.3 excluding profit impact from ORIX Credit stake sale B
Slide 5: Three Categories Progress, Operation
Three Categories Progress, Operation ✓ H1 Operation category profits of 105.8 Bln JPY (up 5.1% YoY) ✓ Robust inbound tourism demand a positive; asset management base profits increased Kansai Airports MICE-IR • Progressing with large-scale renovations ahead of Spring • Full-scale start to investment
Slide 6: Three Categories Progress, Investments
Three Categories Progress, Investments ✓ H1 Investments category profits of 89.2 Bln JPY (up 201%), strong YoY growth recorded ✓ Achieved 48% of FY25.3 target, thanks to growth in base profits at investees, gains on sale of real estate properties and domestic PE investees Business climate ORIX’s str
Slide 7: Capital Recycling Progress
Capital Recycling Progress ✓ Steady progress towards targets achieved in Finance, Operation, and Investments through balanced approach to both new investments and exits ✓ Aim to improve ROE through increased capital recycling while constantly reviewing portfolio FY24.3 FY25.3 Updated Full-year resul
Slide 8: Aircraft & Ships
Aircraft & Ships Aircraft leasing Constrained supply of new aircraft, strong demand for air travel ◼ ORIX Aviation ‐ Currently owns/manages about 200 aircraft, will continue to increase size of owned/managed fleet, primarily narrow body aircraft ◼ Avolon ‐ Announced acquisition of 118 aircraft portf
Slide 9: Shareholder Returns: Interim Dividend
Shareholder Returns: Interim Dividend ✓ 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 ✓ H1 DPS of 62.17 JPY, representing substantial hike (up 45%). Completed 40.1Bln JP
Slide 10: Improving Share Price Valuation (Corporate Value): 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 ✓ Discuss feedback from investor meetings with Board of Directors, monitor ROE tr
Slide 11: Breakdown of Segment Profits: Base Profits and Investment Gains
Breakdown of Segment Profits: Base Profits and Investment Gains Base 221.5 Bln JPY up 11% YoY (+21.5 Bln JPY) FY25.3 H1 Segment profit profits Highest base profits in three years on contributions from domestic PE investees, recovery in inbound tourism, growth in Ships business 287.8 Bln JPY +29% YoY
Slide 12: Segment Profits: 10 Segments
Segment Profits: 10 Segments ✓ PE and Concession, Real Estate, Aircraft and Ships post sharp profit growth ✓ Excluding impact from sale of partial stake in ORIX Credit, only Environment and Energy, OCU recorded lower profits YoY (Bln JPY) Segment Profits Breakdown FY24.3 FY25.3 *3 YoY Highlight H１ H
Slide 13: Segment Assets: 10 Segments
Segment Assets: 10 Segments ✓ Assets down 114.6 Bln JPY vs. end-FY24.3 (-150.5 Bln JPN due to changes in forex) ✓ Maintain cautious stance on new executions in OCU, but promoting investment in assets (such as aircraft) where returns are attractive Segment Assets Breakdown （ Bln JPY） Overseas FY25.3
Slide 14: 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 27% Borrowings from financial ◼
Slide 15: 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) 93% Employed 93% 91% 88% capital ratio
Slide 16: 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 17: Segment Information
Segment Information 17 Copyright © ORIX Corporation All rights reserved.
Slide 18: Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and Maintenance Leasing Segment profits (H1): 45.6 Bln JPY YoY +4.2 Bln JPY （+10％） Segment assets: 1,806.2 Bln JPY YTD +28.8 Bln JPY （ +2% ） ✓ Corporate Financial Services: Profits up on solid fee businesses (incl. insurance ✓ Corporate Financial Services assets higher o
Slide 19: 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 20: Real Estate
Real Estate Segment profits (H1): 50.4 Bln JPY YoY +22.8 Bln JPY（+83％） Segment assets: 1,111.2 Bln JPY YTD +1.1 Bln JPY （flat） ✓ RE Investment and Facilities Operation: Profits up sharply on sale of large multi- ✓ Planning several large projects, including Umekita purpose building (Hundred Circus),
Slide 21: 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 asset stable at around 1 Tln JPY, AUM has grown to 1.7 Tln JPY. Generates stable earnings by increasing recurring income Segment Asset and Ratio
Slide 22: PE Investment and Concession
PE Investment and Concession Segment profits (H1): 47.0 Bln JPY YoY +37.1 Bln JPY (+374％) Segment assets: 988.3 Bln JPY YTD -78.4 Bln JPY (-7%) ✓ PE investment: Profits up sharply thanks to higher base profits on contributions ✓ Assets lower on sale of Sasaeah Holdings from existing investees includ
Slide 23: PE Investment and Concession – About the Business
PE Investment and Concession – About the Business ✓ Currently invested in 17 companies (as of end-September 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
Slide 24: Environment and Energy
Environment and Energy Segment profits (H1): 2.3 Bln JPY YoY -9.8 Bln JPY （-81％） Segment assets: 1,046.3 Bln JPY YTD +69.9 Bln JPY （+69.6 Bln JPY from forex） ✓ Profits lower owing to sluggish power prices in Spain, lower-than-expected solar, ✓ Assets higher at overseas subsidiaries, equity-method af
Slide 25: Global Renewable Energy Portfolio
Global Renewable Energy Portfolio (as of end-Sept 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 13 GW, Greenko 18 GW Spain & other locations China Japan USA & other locations ・El
Slide 26: Insurance
Insurance Segment profits (H1): 40.9 Bln JPY YoY +3.4 Bln JPY （+9％） Segment assets: 2,901.2 Bln JPY YTD -20.8 Bln JPY （-38.7 Bln JPY from forex ） ✓ Strong investment income on increase in investment assets ✓ Assets mostly flat on ongoing replacement of part of investment ✓ Expanded market share with
Slide 27: 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 28: Banking and Credit
Banking and Credit Segment profits (H1): 13.1 Bln JPY YoY -3.7 Bln JPY (-22%) Segment assets: 2,921.4 Bln JPY YTD -12.8 Bln JPY (flat) ✓ Banking: Higher financial revenues driven by increase in interest rates ✓ Banking: Assets up on growth in merchant banking business ✓ Credit: Profits fell on lower
Slide 29: 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 30: Aircraft and Ships
Aircraft and Ships Segment profits (H1): 32.0 Bln JPY YoY+13.2 Bln JPY （+70%） Segment assets: 1,222.0 Bln JPY YTD +52.3 Bln JPY （- 56.6 Bln JPY from forex ） ✓ Aircraft: OAS, Avolon lease revenue up on growing demand for air travel ✓ Assets higher on new ship lease executions and aircraft acquisition
Slide 31: Aircraft and Ships – About the Business
Aircraft and Ships – About the Business (as of end-September 2024) ORIX Aviation (Business since 1978) Owned, Managed, and Committed Fleet EMEA Wide body APAC 22% 21% 18% 113 Average age Managed Fleet 139 151 152 6.6 years 148 GLOBALLY Boeing 141 144 NARROWBODY DIVERSE 47% OEM BREAKDOWN Airbus WEIGH
Slide 32: ORIX USA
ORIX USA Segment profits (H1): 16.6 Bln JPY YoY -4.9 Bln JPY （-23%） Segment assets: 1,540.1 Bln JPY YTD -154.4 Bln JPY （- 93.7 Bln JPY from forex ） ✓ Credit: Faring well with segment profit up YoY ✓ Assets decreased, mostly due to changes in forex, CLO issuance ✓ Real estate: Slump in origination vo
Slide 33: 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 $75.6 Bln) ✓ Operates a hybrid strategy, investing own principal capital while providing capital market and asset management solutions t
Slide 34: ORIX Europe
ORIX Europe Segment profits (H1): 20.8 Bln JPY YoY+1.3 Bln JPY （+6%） Segment assets: 663.0 Bln JPY YTD +0.9 Bln JPY （-15.8 Bln JPY from forex ） ✓ Fee revenue up on AUM expansion ✓ Assets decreased, mostly due to changes in forex ✓ Robeco’s AUM reached 358 Bln EUR, a new record high Segment profits S
Slide 35: 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 36: Asia and Australia
Asia and Australia Segment profits (H1): 19.1 Bln JPY YoY +0.6 Bln JPY （+3%） Segment assets: 1,708.0 Bln JPY YTD-1.3 Bln JPY （-15.4 Bln JPY from forex） ✓ Growth in lease revenues in South Korea, India, and Australia led to ✓ Leasing balances up, mainly in Australia, South Korea higher profits both Y
Slide 37: 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 Segment Asset Trends by Major Country and Region （Bln JPY） Leases, Loans*1 Investments*2
Slide 38: Three Portfolio Categories: Finance, Operation, Investments
Three Portfolio 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 S
Slide 39: Assets and ROA: Three Categories
Assets and ROA: Three Categories (From FY24.3 results presentation announced in May 2024 with some updates) ✓ Within our 3 categories, we expect stable “Finance” earnings to be supported by changes in the macro climate, the ongoing shift to an asset manager model to boost “Operations” and an increas
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 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％ 4.5GW Enhanced shareholder returns Well-balanced earnings*1 Top-class inve
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 ✓ 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 Asia
Slide 44: 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 Acquisition /new Primagest business (Projector business) Sasaeah HD (Fujita Pharmaceutical, Kyoto Biken) Houlihan ORIX Living Yayoi ORIX
Slide 45: Investment Pipeline
Investment Pipeline Business Investment amount Pipeline Type of investment Large number of business succession deals Immediately accretive Domestic PE 350.0 Bln JPY~ Carve out, take private deals also in play Intent to sell Overseas renewable Steady progress in projects in development/under construc
Slide 46: 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 47: Segment profits trends
Inbound Tourism Kansai Airports (three airports) Segment profits trends 120% passenger numbers (vs. 2019) 101% Aircraft lease rates (000 USD ） 400 (Aircraft and Ships, Facilities operations, Concession) 400 Aerbus A320 Neo Domestic 319 273 399 80% (3 airport total) 97% 300 27.1 52% 310 Boeing 737 Ma
Slide 48: 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 49: 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 50: 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 51: 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 52: 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