Slide 1: First Quarter Consolidated Financial Results
ORIX Corporation First Quarter Consolidated Financial Results For the Three-Month Period Ended June 30, 2016 Kazuo Kojima Deputy President & CFO Shintaro Agata Corporate Executive Vice President, Head of Treasury Headquarters Takao Kato Corporate Senior Vice President, Head of Accounting Headquarter
Slide 2: Overview (1)
Overview（1） 76.8bn yen in net income, down 6% YoY Achieved annualized ROE at 13.2% Net Income* and ROE (JPY Bn) 90 15.0% 13.2% 80 70 13.7% 60 50 40 65.9 81.5 76.8 30 20 10 0 15.3 Q1 16.3 Q1 17.3 Q1 Net Income ROE (annualized) *Net Income refers to Net Income Attributable to ORIX Corporation Shar
Slide 3: Overview (2)
Overview（2） Segment profits at 115.3 bn yen down 5% YoY Profits growth achieved in Real Estate, and Investment and Operation segments In Retail segment, HLIKK was negatively affected by unfavorable market condition; In Overseas Business segment, lower profits resulted from Robeco and strengthe
Slide 4: Overview (3)
Overview（3） Segment assets at 8,570.2bn yen, 4% decrease YTD Assets in Overseas Business segment decreased by 9% due to strengthened yen Segment Assets ROA maintained at 3% level Segment Assets and ROA (JPY Tn) 3.7% 3.6% 10 3.5% 3.8% 2.9% 3.3% 8 2.8% Overseas Business Retail 6 2.3% Investment
Slide 5: Overview (4)
Overview（4） Pretax profits: 5.5bn yen decrease YoY (▲4%) Recognized gains on sales of PE investments; gains on sales of RE assets increased YoY Segment assets: 402.3bn yen decrease YTD (▲4%) Half of the decrease was due to FX rate fluctuation Continued asset decrease in HLIKK’s run-off bus
Slide 6: Segment Performance (1) (Corporate Financial Services)
Segment Performance（1） （Corporate Financial Services） Segment profits: 8.5bn yen, 3.9bn yen decrease YoY (▲31%) In FY16.3 Q1, gains on sales(c.3bn yen) of investment in securities was recognized Services income continued to increase Segment assets: 1,033.2bn yen, 16.7bn yen decrease YTD (▲2%
Slide 7: Segment Performance (2) (Maintenance Leasing)
Segment Performance（2） （Maintenance Leasing） Segment profits: 9.9bn yen, 1.8bn yen decrease YoY (▲15%) Services income increased despite decrease in gains on sales of used car YoY Segment assets: 700.4bn yen, 30.9bn yen decrease YTD (▲4%) Assets decreased due to securitization(37.5bn yen) Se
Slide 8: Segment Performance (3) (Real Estate)
Segment Performance（3） （Real Estate） Segment profits: 23.6bn yen, 9.2bn yen increase YoY (+63%) Realized capital gains from well-timed sales of assets Segment assets: 705.6bn yen: 34bn yen decrease YTD (▲5%) Assets decreased due to rental property sales Segment Revenues/Profits Segment Asset
Slide 9: Segment Performance (4) (Investment and Operation)
Segment Performance（4）（Investment and Operation） Segment profits: 31bn yen, 4.8bn yen increase YoY (+18%) Profit growth largely driven by exit of PE investments and increase in services income contributed by Environment and energy business Segment assets: 678.6bn yen, 25.6bn yen decrease YTD (
Slide 10: Segment Performance (5) (Retail)
Segment Performance（5） （Retail） Segment profits: 12.5 bn yen, 9.1bn yen decrease YoY (▲42%) Significant decrease on life insurance premiums and related investment income from HLIKK Segment assets: 3,384.5bn yen, 78.2bn yen decrease YTD (▲2%) Increase in banking offset by decrease in HLIKK’s
Slide 11: Segment Performance (6) (Overseas Business)
Segment Performance（6） （Overseas Business） Segment profits: 29.9bn yen, 4.6bn yen decrease YoY (▲13%) 3.4bn yen decrease due to FX rate fluctuation; Robeco recognized an one-time gain in the same period last FY Decrease in gains on sale of investment securities, and services income from Houlih
Slide 12: Business in Three Categories Progress/Future Directions
Business in Three Categories Progress/Future Directions “Investment” and “Finance” achieved pretax profit growth in Q1 Continue to make new investments in Japan and overseas to further expand “Operation” and “Investment” businesses • Corporate financial services segment had profit decrease; Reta
Slide 13: Summary
Summary Q1 Net income at 76.8bn yen, annualized ROE at 13.2% Although net income decreased YoY, ROE maintained at above 13% Given the uncertainties in the external environment, we will continue to focus on expanding our “Operation” and “Investment” businesses with caution Copyright © 2016 ORIX Corpo
Slide 14: Appendix
Appendix Copyright © 2016 ORIX Corporation All rights reserved. 13
Slide 15: About ORIX Sustainable Growth
About ORIX Sustainable Growth Maintaining profitable for the past 51 years and achieving sustainable profit growth Net Income Attributable to ORIX Corporation Shareholders FY2016.3 Record Net Income JPY Bn 300 FY2009.3 Collapse of Lehman Brothers 250 FY2002.3 Bursting of the IT 200 Bubble FY1998.3
Slide 16: About ORIX Business Expertise and Group-Wide Capability
About ORIX Business Expertise and Group-Wide Capability ORIX evolved by advancing into neighboring areas while increasing its finance and asset expertise Credit Screening and Banking Asset Management Finance Capability Life Insurance Investment Lending Principal investment Investment Banking Busi
Slide 17: About ORIX Assets by Segment
About ORIX Assets by Segment Maximizing core competencies of each segment while creating group synergy Corporate Financial Services Lending, Leasing, fee businesses Overseas Business 12% Leasing, Lending, Investment 24% Maintenance Leasing in bonds, Asset management, 8% Ship/Aircraft-related Segme
Slide 18: About ORIX Extensive Overseas Network
About ORIX Extensive Overseas Network Expanded its global reach starting with Hong Kong in 1971, using knowhow developed in Japan 37 Countries and Regions worldwide (As of 2016.3.31) 1971 Hong Kong 1972 Singapore 1994 Oman 1973 Malaysia 1995 Poland Business Network 1975 Indonesia 1997 Egypt 1981 E
Slide 19: Appendix(1) Performance Overview
Appendix(1) Performance Overview （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Total Revenues 2,174.3 2,369.2 425.3 606.1 587.9 97% Net Income *1 234.9 260.2 65.9 81.5 76.8 94% Segment Assets 9,170.2 8,972.4 7,186.0 8,918.7 8,570.2 96% Total Assets 11,439.9 10,992.9 8,951.2 11,248.0 10
Slide 20: Appendix(2) Profits by Segment
Appendix(2) Profits by Segment （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Corporate Financial Services 25.5 42.4 5.9 12.4 8.5 69% Maintenance Leasing 40.4 42.9 11.0 11.7 9.9 85% Real Estate 3.5 42.9 10.8 14.5 23.6 163% Investment and Operation 42.4 57.2 5.4 26.2 31.0 118% Retail 120
Slide 21: Appendix(3) Assets by Segment
Appendix(3) Assets by Segment （JPY Bn） Change 15.3 16.3 14.6 15.6 16.6 (YTD) Corporate Financial Services 1,132.5 1,049.9 994.8 1,076.1 1,033.2 98% Maintenance Leasing 662.9 731.3 637.1 675.0 700.4 96% Real Estate 835.4 739.6 916.0 802.5 705.6 95% Investment and Operation 660.0 704.2 572.4 593.1 678
Slide 22: Appendix(4) Income Statement Data
Appendix(4) Income Statement Data （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Finance revenues 186.9 200.9 46.1 49.6 48.1 97% Gains on investment securities and dividends 56.4 35.8 23.9 22.9 4.0 17% Operating leases 124.9 128.8 33.9 35.4 44.8 127% Life insurance premiums and related
Slide 23: Appendix(5) Funding
Appendix(5) Funding （JPY Bn） Change Funding 15.3 16.3 14.6 15.6 16.6 (YoY) CP 89.6 102.4 162.0 90.7 35.9 -54.8 Borrowings from Financial Institutions 2,881.6 2,970.6 2,582.0 2,869.8 2,863.3 -6.5 Bonds / MTN 1,151.5 938.1 1,145.0 1,086.3 953.9 -132.4 Deposits 1,287.4 1,398.5 1,195.3 1,311.7 1,428.2 1
Slide 24: Appendix(6) Corporate Financial Services
Appendix(6) Corporate Financial Services （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Finance revenues 35.6 34.2 9.2 8.4 8.1 96% Operating leases 24.5 25.5 6.1 6.2 6.0 97% Services income 22.0 35.7 3.5 8.1 9.5 117% Sales of goods and real estate and 3.4 11.7 0.7 4.8 1.4 28% others Seg
Slide 25: Appendix(7) Maintenance Leasing
Appendix(7) Maintenance Leasing （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Finance revenues 11.1 12.1 2.9 3.0 3.1 102% Operating leases 185.7 188.8 46.2 46.7 45.8 98% Services income 62.5 66.8 14.9 16.8 17.3 103% Segment Revenues 263.5 271.7 65.1 67.5 67.2 100% Segment Expenses 223.
Slide 26: Appendix(8) Real Estate (1)
Appendix(8) Real Estate (1) （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Finance revenues 4.1 6.7 1.2 0.7 0.4 61% Operating leases 63.8 60.3 18.6 18.8 28.4 151% Gains on Rental Property Sales 14.9 16.1 6.2 7.6 18.2 239% Services income 104.1 110.6 24.9 27.0 26.6 99% Sales of goods and
Slide 27: Appendix(9) Real Estate (2)
Appendix(9) Real Estate (2) ■Breakdown of Real Estate Segment Assets （JPY Bn） Change 15.3 16.3 14.6 15.6 16.6 (YTD) Rental Property 566.9 493.4 616.7 553.2 463.2 94% Under Lease 471.5 406.1 506.1 458.1 386.5 95% Under Development 95.4 87.3 110.6 95.1 76.7 88% Condo Assets 16.5 5.9 29.9 15.0 5.8 98%
Slide 28: Appendix(10) Investment and Operation
Appendix(10) Investment and Operation （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Finance revenues 15.7 12.6 4.7 3.7 2.7 72% Gains on investment securities and dividends 9.3 10.3 2.5 8.2 0.7 9% Sales of goods and real estate 371.4 718.9 33.3 150.3 184.9 123% Services income 260.4 277
Slide 29: Appendix(11) Retail
Appendix(11) Retail （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Finance revenues 52.5 55.3 12.8 13.5 14.1 105% Life insurance premiums and related investment income 352.5 190.8 40.5 68.6 37.1 54% Services income and others 20.9 8.2 16.5 1.8 2.8 157% Segment Revenues 426.0 254.3 69.8
Slide 30: Appendix(12) Overseas Business (1)
Appendix(12) Overseas Business (1) （JPY Bn） Change FY15.3 FY16.3 15.3 Q1 16.3 Q1 17.3 Q1 (YoY) Finance revenues 63.3 75.0 14.2 19.0 18.8 99% Gain on investment securities and dividends 30.5 16.1 5.6 9.6 2.3 23% Operating leases 82.1 92.0 19.4 21.7 22.7 105% Services income 321.5 250.1 70.8 75.9 55.1
Slide 31: Appendix(13) Overseas Business (2)
Appendix(13) Overseas Business (2) ■Overseas Business segment assets breakdown （JPY Bn） Change By Region 15.3 16.3 14.6 15.6 16.6 (YTD) Americas 776.2 787.2 621.4 738.1 693.9 88% Asia / Australia 591.5 592.3 543.6 596.9 553.4 93% Greater China 249.2 260.3 198.7 256.5 239.3 92% Middle East / Europe 4
Slide 32: Appendix(14) Business Portfolio in Three Categories
Appendix(14) Business Portfolio in Three Categories Finance Operation Investment Main Risk Credit risk Operation/Business risk Market risk Categories Capital Low Medium High Requirement Environment/ Financial Maintenance Tangible Japan Ex-Japan Others Fixed Income Equity Infrastructure Services Serv
Slide 33: Reference Data
Reference Data Copyright © 2016 ORIX Corporation All rights reserved. 32
Slide 34: Macro Economic Indicators
Macro Economic Indicators National CPI (Ex Fresh Food) Trends in Machinery Orders (YoY Change) JPY Tn % Change 3.5 7.0 6.0 3.0 5.0 2.5 4.0 3.0 2.0 2.0 1.5 1.0 0.0 1.0 -1.0 0.5 -2.0 -3.0 0.0 12.3 13.3 14.3 15.3 16.3 12.3 13.3 14.3 15.3 16.3 Japan U.S China Private demand excl. volatile orders* Manufa
Slide 35: Japanese Corporate Indices
Japanese Corporate Indices Corporate Bankruptcies Tankan Corporate Diffusion Index (Quarterly Basis) (Quarterly Basis) JPY Tn Cases 40 3.0 4,000 30 3,000 2.0 20 2,000 1.0 10 1,000 0.0 0 0 12.6 13.6 14.6 15.6 16.6 12.6 13.6 14.6 15.6 16.6 Large Medium Small Liabilities (left) Bankruptcies (right) Sou
Slide 36: Japanese Real Estate Indicators
Japanese Real Estate Indicators Japan TSE REIT Index Office Rental Rates Yen per 3.3㎡ 2,000 20,000 1,500 16,000 1,000 12,000 500 8,000 12.6 13.6 14.6 15.6 16.6 12.6 13.6 14.6 15.6 16.6 Tokyo Avg. Rent Osaka Avg. Rent Source: Tokyo Stock Exchange Source: Miki Shoji Copyright © 2016 ORIX Corporation A
Slide 37: Domestic Lease Business Indicators
Domestic Lease Business Indicators Private Equipment Investment New Car Sales JPY Tn 1,000 Units 100 12.0% 7,000 14.0% 千 10.0% 6,000 12.0% 80 8.0% 5,000 10.0% 60 4,000 8.0% 6.0% 40 3,000 6.0% 4.0% 2,000 4.0% 20 2.0% 1,000 2.0% 0 0.0% 04.3 06.3 08.3 10.3 12.3 14.3 16.3 0 0.0% 05.12 07.12 09.12 11.12
Slide 38: Other Domestic Indicators
Other Domestic Indicators Number of condominium sold in the Domestic Shipping Amount of Solar Cell Tokyo metropolitan area MW No. of transactions 10,000 60,000 50,000 8,000 Others Residential 40,000 6,000 30,000 4,000 20,000 2,000 10,000 0 0 09.6 10.6 11.6 12.6 13.6 14.6 15.6 16.6 10.3 11.3 12.3 13.
Slide 39: Other Domestic Indicators
Other Domestic Indicators The number of M&A deals The number of the New Listed Companies OUT-IN 3,000 IN-OUT 100 IN-IN 2,500 80 2,000 60 1,500 40 1,000 500 20 0 0 10.12 11.12 12.12 13.12 14.12 15.12 10.12 11.12 12.12 13.12 14.12 15.12 16.1-16.6 Source: RECOF Corporation Source: Tokyo Stock Exchange
Slide 40: Other Domestic Indicators
Other Domestic Indicators Premium Income for Individual Insurance Consumer Finance Loan Balance JPY Bn JPY Bn 25,000 15,000 20,000 12,000 15,000 9,000 10,000 6,000 5,000 3,000 0 0 05.3 07.3 09.3 11.3 13.3 15.3 05.3 07.3 09.3 11.3 13.3 15.3 Source: Japan Statistics Bureau Source: Japan Financial Serv
Slide 41: 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 42: ORIX Corporation
For annual and more historical data please access our website. A list of major disclosure materials is given below. ORIX Website http://www.orix.co.jp/grp/en/ IR Website http://www.orix.co.jp/grp/en/ir/ ORIX Corporation Corporate Planning Department World Trade Center Building., 2-4-1, Hamamatsu-cho