Slide 1: First Quarter Consolidated Financial Results
ORIX Corporation First Quarter Consolidated Financial Results For the Three-Month Period Ended June 30, 2019 Shoji Taniguchi Member of the Board of Directors, Managing Executive Officer Responsible for Treasury and Accounting Headquarters, Assistant to CEO Hitomaro Yano Executive Officer Head of Tre
Slide 2: Overview (1) Net Income / ROE
Overview（1） Net Income / ROE ✓ 69.2 JPY bn in net income, down 13% YoY. Annualized ROE at 9.6% ✓ Gains on sales were down from past levels, but profits other than gains on sales maintained steady growth (Please refer to the next page) Net Income* and ROE Reference: ROE in the past five years (JPY Bn
Slide 3: Overview (2) Breakdown of Pre-tax Net Profit
Overview（2） Breakdown of Pre-tax Net Profit Segment Profits In the past five years : Steady growth maintained （other than gains on sales） FY20.3 Q1 : New investments in FY19.3 (NXT Capital, Avolon) contributed Gains on Sales FY20.3 Q1 : Decreased on YoY, but a certain level 27.8 JPY bn was secured *
Slide 4: Overview (3) Segment Profits / Segment Assets
Overview（3） Segment Profits / Segment Assets ✓ Corporate Financial Services: Profit decreased affected by a decline in agency fee income from life insurance business for corporate customers as well as a decline in finance revenues ✓ Real Estate : Profit decreased affected by the large gains on sales
Slide 5: Overview (4) Employed Capital Ratio / Funding structure
Overview（4） Employed Capital Ratio / Funding structure ✓ Employed Capital Ratio : Continue to pursue growth while controlling risk and return ✓ Funding structure : Diversified funding methods and maintained a high ratio of long-term debt Shareholder’s Equity / Breakdown of Funding and Employed Capit
Slide 6: Segment Performance
Segment Performance Copyright © 2019 ORIX Corporation All rights reserved. 6
Slide 7: Segment Performance (1) Corporate Financial Services
Segment Performance（1） Corporate Financial Services *As the figures less than 0.1 JPY bn are rounded off, the total of individual business unit figures does not necessarily match the segment figures Segment Profits: 4.1 JPY bn YoY ▲3.8JPY bn (▲48％) Segment Assets: 1,000.1 JPY bn YTD +40.4 JPY bn (+4
Slide 8: Segment Performance (2) Maintenance Leasing
Segment Performance（2）Maintenance Leasing Segment Profits: 7.9 JPY bn YoY ▲1.8 JPY bn (▲18％) Segment Assets: 880.7 JPY bn YTD +6.9 JPY bn (+1％) ✓ Revenues from both Auto and Rentec increased, but profits decreased due partly to ✓ Remained at the same level as FY19.3 SG&A increase ✓ Gains on sales of
Slide 9: Segment Performance (3) Real Estate
Segment Performance（3） Real Estate Segment Profits: 4.5 JPY bn YoY ▲16.0 JPY bn (▲78％) Segment Assets: 813.7 JPY bn YTD +93.5 JPY bn (+13％) ✓ Profits decreased, affected by large gains on sales recorded in the same period of ✓ Operating leases increased due to new lease accounting standards the prev
Slide 10: Segment Performance (4) Investment and Operation
Segment Performance（4） Investment and Operation Segment Profits: 14.2 JPY bn YoY +0.6 JPY bn (+4％) Segment Assets: 750.3 JPY bn YTD +16.7 JPY bn (+2％) ✓ Recorded gains on sales in private equity investment ✓ Business assets related to environment and energy business increased due to new Profits from
Slide 11: Segment Performance (5) Retail
Segment Performance（5）Retail Segment Profits: 21.6 JPY bn YoY ▲0.2 JPY bn (▲1％) Segment Assets: 3,735.1 JPY bn YTD +163.6 JPY bn (+5％) ✓ Life insurance premium income increased, but profits decreased due to decrease in ✓ Investment in securities in life insurance and installment loans in banking bus
Slide 12: Segment Performance (6) Overseas Business
Segment Performance（6） Overseas Business Segment Profits: 48.1 JPY bn YoY +8.1 JPY bn (+20%) Segment Assets: 3,094.5 JPY bn YTD ▲44.5 JPY bn (▲1％) ✓ Foreign exchange impact ▲0.2 JPY bn ✓ Other than foreign exchange impact of ▲87.7 JPY bn, segment assets increased ✓ Profit from new investments in FY1
Slide 13: Summary
Summary FY20.3 Q1 net income was 69.2 JPY bn, annualized ROE at 9.6% Gains on sales decreased on YoY, but a certain level was secured Profits other than gains on sales grew as new investments contributed Discussion underway concerning updates to “medium-term strategic directions” (→P.15) including s
Slide 14: Appendix
Appendix Copyright © 2019 ORIX Corporation All rights reserved. 14
Slide 15: Medium-Term Strategic Directions (from FY19.3 to FY21.3)
Medium-Term Strategic Directions (from FY19.3 to FY21.3) Profit Growth Annual net income growth at between 4-8% Capital Efficiency ROE at 11% or higher Financial Soundness Maintain single A credit rating Enhance ERM as a global company Shareholders return policy ・ Dividend payout ratio target at 30%
Slide 16: About ORIX: Proven Track Record of Profitability
About ORIX Proven Track Record of Profitability ✓ ORIX has achieved 54 years of sustained, profitable growth JPY Bn Net Income Attributable to ORIX Corporation Shareholders 350 300 250 FY2002.3 FY2009.3 Burst of IT bubble Global financial crisis 200 FY1998.3 Asian currency crisis 150 FY1993.3 Burst
Slide 17: About ORIX: Expertise in Business and Collective Capabilities
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 Infrastructure Copyright © 2019 ORIX Corporation All rights reserved. 17
Slide 18: About ORIX: Profits and Assets by Segment
About ORIX Profits and Assets by Segment ✓ Individual businesses demonstrate their strengths to the maximum extent possible to bring about synergies 6% Corporate Financial Finance and fee business 10% Services 31% Segment Profits Automobile leasing and rentals, car-sharing; Maintenance Leasing test
Slide 19: About ORIX: Global Network
About ORIX Global Network ✓ Using its expertise cultivated in Japan, ORIX has expanded its business globally, with operations in 37 countries and regions worldwide Copyright © 2019 ORIX Corporation All rights reserved. 19
Slide 20: Appendix (1) Performance Overview
Appendix（1） Performance Overview （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Total Revenues 2,174.3 2,369.2 2,678.7 2,862.8 2,434.9 603.9 537.0 89% Net Income *1 234.9 260.2 273.2 313.1 323.7 79.9 69.2 87% Segment Assets 9,464.8 9,246.3 9,201.9 9,098.9 9,997.7 9,117.2 10
Slide 21: Appendix (2) Profits by Segment
Appendix（2） Profits by Segment （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Corporate Financial Services 25.5 42.4 38.0 49.3 25.5 7.8 4.1 52% Maintenance Leasing 40.4 42.9 39.8 40.2 38.8 9.7 7.9 82% Real Estate 9.8 52.3 84.5 74.4 89.2 20.5 4.5 22% Investment and Operation
Slide 22: Appendix (3) Assets by Segment
Appendix（3） Assets by Segment （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YTD) Corporate Financial Services 1,203.4 1,133.9 1,086.0 991.8 959.7 976.1 1,000.1 104% Maintenance Leasing 750.7 783.0 806.7 847.2 873.8 855.3 880.7 101% Real Estate 1,054.9 917.7 843.9 802.0 720.2 79
Slide 23: Appendix (4) Income Statement Data
Appendix（4） Income Statement Data （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Finance revenues 192.8 208.2 211.9 228.3 242.9 56.6 62.5 110% Gains on investment securities and dividends 56.4 35.8 30.3 43.3 16.0 7.5 13.5 180% Operating leases 124.9 128.8 155.1 127.3 156.6
Slide 24: Appendix (5) Funding
Appendix（5） Funding （JPY Bn） Change Funding FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) CP 89.6 102.4 50.1 54.9 41.1 21.5 69.3 47.8 Borrowings from Financial Institutions 2,881.6 2,970.6 2,958.2 3,056.2 3,279.4 2,989.7 3,236.4 246.7 Bonds / MTN 1,151.5 938.1 885.1 940.1 997.5 925.8 980.
Slide 25: Segment Performance (1) Corporate Financial Services
Segment Performance（1） Corporate Financial Services （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Finance revenues 37.4 36.0 32.4 30.7 28.8 7.7 5.9 77% Gains on investment securities and dividends 1.0 7.1 2.5 17.1 -0.8 0.2 0.6 233% Operating leases 24.5 25.5 25.6 23.4 23.5
Slide 26: Segment Performance (2) Maintenance Leasing
Segment Performance（2） Maintenance Leasing （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Finance revenues 11.7 12.5 13.4 14.2 14.4 3.4 3.7 108% Operating leases 185.7 188.9 187.3 189.7 198.0 47.9 50.0 104% Services income 62.5 66.8 66.3 67.8 70.6 17.4 17.4 100% Segment Rev
Slide 27: Segment Performance (3) Real Estate
Segment Performance（3） Real Estate （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Finance revenues 4.2 6.9 2.4 2.1 2.1 0.5 0.7 137% Operating leases 71.4 67.9 96.0 55.2 72.5 12.9 13.0 101% Gains on Rental Property Sales 15.5 16.8 50.6 14.3 35.0 3.1 4.4 139% Sales of goods a
Slide 28: Segment Performance (4) Investment and Operation
Segment Performance（4） Investment and Operation （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Finance revenues 16.0 12.9 11.0 9.3 9.1 2.5 1.8 71% Gains on investment securities and dividends 9.3 10.2 12.9 7.6 0.1 0.7 0.3 47% Sales of goods and real estate 276.5 596.7 825.0
Slide 29: Segment Performance (5) Retail
Segment Performance（5） Retail （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Finance revenues 56.8 61.0 68.1 72.9 76.7 18.7 19.5 104% Life insurance premiums and related investment income 352.5 190.8 297.9 353.0 348.3 83.2 88.0 106% Segment Revenues 426.1 254.4 368.7 428.7
Slide 30: Segment Performance (6) Overseas Business
Segment Performance（6） Overseas Business （JPY Bn） Change FY15.3 FY16.3 FY17.3 FY18.3 FY19.3 19.3 Q1 20.3 Q1 (YoY) Finance revenues 67.3 79.4 85.1 98.4 111.6 23.7 31.0 131% Gains on investment securities and dividends 29.8 16.1 13.3 17.5 16.6 5.6 12.9 229% Operating leases 82.1 92.0 88.4 111.6 121.9
Slide 31: Financials (1) Funding Structure
Financials（1） Funding Structure ✓ Diversified funding. Controlled costs while maintaining a high long-term debt ratio Breakdown of Funding Trend in Funding Costs and Long-term Debt Ratio* *Excluding deposits 5.00% 100% Deposits 4.00% 80% 31% 3.00% 60% As of June 30, 2019 2.00% 40% ABS, CMBS 1.00% 20
Slide 32: Financials (2) Debt-to-Equity Ratio
Financials（2） Debt-to-Equity Ratio ✓ Debt-to-Equity Ratio continuously stays at a low level Trend in Debt-to-Equity Ratio (JPY Tn) 7 Total ORIX Corporation 2.7× Shareholders’ Equity 6 2.5× 2.3× Deposits 5 2.2× 2.2× 2.2× 2.1× 1.9× 4 1.7× 1.6× Short- and Long-Term Debt 1.5× 1.5× （Excluding Deposits) 3
Slide 33: Financials (3) Bond Maturity Ladder
Financials（3） Bond Maturity Ladder ✓ Leveled out annual redemption amounts by dispersing bond maturities Maturity Ladder (As of June 30, 2019) (JPY Bn) 150 100 Matured ORIX Domestic Bond for Institutional Investors ORIX Domestic Bond for Retail Investors 50 ORIX Overseas Bond / Local Subsidiary Bond
Slide 34: Performance in Three Categories
See P.35 for details on the Performance in Three Categories three categories Growth in Finance will not be proactively sought under the current low interest rate environment; rather, efforts will be made to maintain the current status. Focus will continue to be put on Operation and Investment with h
Slide 35: Business Portfolio in Three Categories
Business Portfolio in Three Categories Finance Operation Investment Main Risk Credit risk Operation/Business risk Market risk Category Capital Requirement Low Medium-High High Environment/ Financial Maintenance Fixed Tangible Japan Overseas Others Equity Infrastructure Services Services Income Asset
Slide 36: Shareholders Return
Shareholders Return ✓ Raised dividend payout ratio to 30% for FY19.3, with a full year dividend of 76 yen per share (up 10 yen, +15% YoY) ✓ Maintain the payout ratio at 30% for FY20.3, with the interim dividend forecasted at 35 yen per share ✓ Maintain the optimal balance between investment opportun
Slide 37: 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 38: 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 Corporate Planning Department World Trade Center Building, 2-4-1, Hamamatsu-cho, Minato-ku,