Slide 1: First Quarter Consolidated Financial Results
ORIX Corporation First Quarter Consolidated Financial Results For the Three-Month Period Ended June 30, 2020 Hitomaro Yano Executive Officer Head of Treasury and Accounting Headquarters August 4, 2020 (TSE: 8591; NYSE: IX) 1 Company Name Copyright © 2020 ORIX Corporation All rights reserved.
Slide 2: Executive Summary
Executive Summary （1） Overview 50.0 JPY Bn in net income（- 27.7% YoY）, annualized ROE 6.8% Base profits are stable except for businesses affected by COVID-19, which were announced at the end of FY20.3 Interim dividend forecast of 35 yen and payout ratio of 50% also remains unchanged （2） Segment Perf
Slide 3: Overview: Net Income / ROE
（1）Overview Net Income / ROE ✓ 50.0 JPY Bn in net income, down by 27.7% YoY. Annualized ROE at 6.8% ✓ 75.4 JPY Bn in segment profits, down by 29.0% YoY Net Income* and ROE Reference: ROE in the past five years (JPY Bn) 400.0 11.7% 11.3% 12.1% 11.6% 15.0% 40 0. 0 100 , 000 10.3% 9.6% 13.2% 12.5% 14.3
Slide 4: Overview: Breakdown of Segment Profits
（1）Overview Breakdown of Segment Profits 60.5 JPY Bn down by 23％ (-18.5 JPY Bn) FY 21.3 Q1 Base Profits Profits decreased in Real Estate (Facilities Operation), Concession, Aircraft Segment Profits Leasing, Auto, and ORIX USA due to the impact of COVID-19 75.4 JPY Bn Life insurance, banking, and cre
Slide 5: The Impact of the COVID-19 Outbreak in Q1
（1）Overview The impact of the COVID-19 Outbreak in Q1 ✓ Profits declined primarily in Real Estate, Aircraft Leasing, Concession and ORIX USA ✓ Profits in Life Insurance and other businesses were solid Item Background Impact Amount Occupancy rate declined / temporally closure of various ① Real Estate
Slide 6: Segment Performance: Change in Segments
（2）Segment Performance Change in Segments 6 segments 16 units 10 segments 16 units Main Business Corporate Financial Services Corporate Domestic Sales Corporate Financial Finance and fee business; leasing and rental of Yayoi Financial 1 Services and automobiles, electronic measuring instruments Auto
Slide 7: Segment Performance: Segment Profits
（2）Segment Performance Segment Profits (JPY Bn) Segment YoY Highlight Profits Segment Profits Corporate Financial Services Down due to decreasing demand for rental car in Auto and price decline in used （JPY Bn） 1 and Maintenance Leasing 10.2 -5.3 car market Decreased significantly due to the tempora
Slide 8: Segment Performance: Segment Assets
（2）Segment Performance Segment Assets (JPY Bn) Segment YTD Highlight Segment Assets Assets （JPY Bn） 1 Corporate Financial Services 1,743.9 -45.8 Focused selection resulting in gradual reduction of financial assets and Maintenance Leasing 10,883.5 10,906.7 2 Real Estate 816.5 -4.7 ー PE Investment and
Slide 9: Financial Soundness: Liquidity / Credit Ratings
（3）Financial Soundness Liquidity / Credit Ratings ✓ Liquidity: Excluding bank and life insurance, liquidity is at 1.1 JPY Tn and D/E ratio at 1.6 times ✓ Credit Ratings: S&P reconfirmed A- rating in July while Moody’s and Fitch both maintained A-. R&I is AA- Liquidity・D/E Ratio Credit Ratings (JPY B
Slide 10: Financial Soundness: Funding Structure / Employed Capital Ratio
（3）Financial Soundness Funding Structure / Employed Capital Ratio ✓ Funding structure: Diversified funding methods and maintained a high ratio of long-term debt ✓ Employed Capital Ratio: The ratio shows the usage percentage of ORIX shareholders’ equity Continue to pursue growth while controlling ris
Slide 11: Investment Pipelines
（4）Investment Pipelines ✓ Securing pipelines steadily even during the outbreak of COVID-19 ✓ Select projects carefully that meet the investment criteria, with aim to close several deals within FY21.3 Investment Details Pipeline Environment and Energy • Renewable energy business companies in Japan an
Slide 12: Summary
Summary FY21.3 Q1 net income was 50.0 JPY Bn (-27.7% YoY), Annualized ROE 6.8% Expanded segments from 6 to 10, with a focus on enhancing overseas disclosure Rich investment pipeline both in Japan and overseas Maintain A credit rating or higher / secured high liquidity Copyright © 2020 ORIX Corporati
Slide 13: Segment Performance
Segment Performance Copyright © 2020 ORIX Corporation All rights reserved. 13
Slide 14: (blank)
(blank) Copyright © 2020 ORIX Corporation All rights reserved. 14
Slide 15: Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and （1） Maintenance Leasing *As the figures less than 0.1 JPY Bn are rounded off, the total Segment Performance of individual business unit figures does not necessarily match the segment figures Segment Profits: 10.2 JPY Bn YoY -5.3 JPY Bn (-34％) Segment Assets: 1,743.9
Slide 16: Corporate Financial Services and Maintenance Leasing
Corporate Financial Services and Maintenance Leasing Main business: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and IT-related equipment; Yayoi Segment Assets NET* Segment Revenue Nationwide network of （as of March 31, 2020） （FY 20.3） Corporate Finan
Slide 17: Segment Performance: Real Estate
Segment Performance（2） Real Estate Segment Profits: 1.5 JPY Bn YoY -4.0 JPY Bn (-73％) Segment Assets: 816.5 JPY Bn YTD -4.7 JPY Bn (-1%) ✓ Investment and operation: profits decreased due to the impact of the temporary ✓ Assets remained flat closure of all accommodation facilities by the end of May ✓
Slide 18: Real Estate
Real Estate Main Business：Real estate development, rental and management; facility operations; real estate asset management Segment Assets Unrealized gains on rental Segment Assets Transition properties* （as of March 31, 2020） (JPY Bn) (JPY Bn) 2500 30.1% 90 35.0% 82.8 80 30.0% 73.7 71.9 70.1 23% 20
Slide 19: Segment Performance: PE Investment and Concession
Segment Performance（3） PE Investment and Concession Segment Profits: 4.5 JPY Bn YoY -5.8 JPY Bn (-56％) Segment Assets: 332.4JPY Bn YTD 9.9 JPY Bn (+3％) ✓ PE investment: operating profits remained steady ✓ PE investment: 1* new investment in healthcare industry in Japan, no EXIT However, total profit
Slide 20: PE Investment and Concession
PE Investment and Concession Main Business: (PE Investment) Private equity investment in Japan (Concession) Operation of airports and wastewater treatment plant Major PE Investment in Japan Structure of Concession Operation Initial Company Name Business Investment Japanese Kobayashi Kako Co., Ltd FY
Slide 21: Segment Performance: Environment and Energy
Segment Performance（4） Environment and Energy Segment Profits: 8.1 JPY Bn YoY +4.4 JPY Bn (+118％) Segment Assets: 482.8 JPY Bn YTD +4.0 JPY Bn (+1%) ✓ Solid performance in the Solar Power business ✓ Assets remained flat ✓ Profits increased due to the impact of acquisition accounting in additional in
Slide 22: Environment and Energy
Environment and Energy Main Business: Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels and electricity storage system; recycling and waste management （as of March 31, 2020） Segment Assets Major Investment Overseas（Renewable Energy） （as of March 3
Slide 23: Segment Performance: Insurance
Segment Performance（5）Insurance Segment Profits: 18.0 JPY Bn YoY +4.8 JPY Bn (+36％) Segment Assets: 1,664.0 JPY Bn YTD +83.8 JPY Bn (+5％) ✓ Life Insurance: non-face-to-face sales such as mail order and Internet sales ✓ Investment securities increased in Life Insurance increased ✓ Former Hartford Lif
Slide 24: Life Insurance
Life Insurance • “Simple and easy-to-understand products” and “affordable pricing insurance” • Optimal products aligned with evolving customer needs • Omnichannel strategy utilizing four sales channels - agency, banks and other financial institutions, mail order and Internet sales, and ORIX Life rep
Slide 25: Segment Performance: Banking and Credit
Segment Performance（6）Banking and Credit Segment Profits: 11.5 JPY Bn YoY +2.3 JPY Bn (+25％) Segment Assets: 2,629.5 JPY Bn YTD +25.7 JPY Bn (+1％) ✓ Banking: profits remain steady due to accumulation of high-quality assets ✓ Banking: capturing real estate investment loans demand by utilizing online
Slide 26: Banking and Credit
Banking and Credit • Banking: ORIX Bank offers distinctive products and services such as real estate investment loans, card loans, trust products and investment trusts No retail branches, ATMs, or handle settlement functions, based on a low-cost operation • Credit : ORIX Credit operates in three cor
Slide 27: Segment Performance: Aircraft and Ships
Segment Performance（7） Aircraft and Ships Segment Profits: 7.3 JPY Bn YoY -3.3 JPY Bn (-31%) Segment Assets: 586.1 JPY Bn YTD +0.8 JPY Bn (flat) ✓ ORIX aircraft-related business: gain on sales of aircraft decreased ✓ ORIX aircraft-related business: Remained flat due to restrained new investment in t
Slide 28: Aircraft Leasing Business
Aircraft Leasing Business GLOBALLY NARROWBODY OEM DIVERSE WEIGHTING BREAKDOWN Owned Committed ORIX （NBV） （number of aircraft） （number of aircraft） fleet fleet 72 Nil 17% 15% Average age 34% 5.7 years 46% 54% Remaining Managed fleet lease term 136 85% 7.1 years 49% APAC Narrowbody Airbus Americas EME
Slide 29: Segment Performance: ORIX USA
Segment Performance（8） ORIX USA Segment Profits: 0.2 JPY Bn YoY -15.5 JPY Bn (-98%) Segment Assets: 1,316.8 JPY Bn YTD -57.2 JPY Bn (-4％) ✓ Significant decrease in profits due to the impact of the posting of a gain on sales of ✓ Installment loans decreased Houlihan in FY 20.3 and the recording of ad
Slide 30: ORIX USA
ORIX USA Main Business: Finance, investment and asset management in the Americas Segment Assets NET* Segment Revenue （as of March 31, 2020） （FY 20.3） ・Leveraged loan ・Real estate finance loan ・Leveraged loan 20% and others ・Real estate finance loan 17% Other and others Other ＊NET Segment Revenue = 5
Slide 31: Segment Performance: ORIX Europe
Segment Performance（9） ORIX Europe Segment Profits: 6.7 JPY Bn YoY -1.8 JPY Bn (-21%) Segment Assets: 326.7 JPY Bn YTD +8.9 JPY Bn (+3％) ✓ Profits decreased due to reduction in AUM resulting from the market decline at the ✓ AUM increased moderately with market recovery end of FY20.3 ✓ Excluding FX i
Slide 32: ORIX Europe
ORIX Europe Main Business: Equity and fixed income asset management AUM* Major Asset Management Business （EUR Bn） Established Head Office Primary Business (Acquired) 290.5 288.7 294.5 280.6 262.5 255.2 Stocks, bonds, and 1929 Robeco Rotterdam investment solutions （2013） 232.8 210.8 1995 Boston Partn
Slide 33: Segment Performance: Asia and Australia
Segment Performance（10） Asia and Australia Segment Profits: 7.4 JPY Bn YoY -6.6 JPY Bn (-47%) Segment Assets: 1,008.0 JPY Bn YTD -2.3 JPY Bn (flat) ✓ Profits decreased due to large investment gains in FY 20.3, despite positive gain ✓ Unchanged from the end of the previous FY recorded in Q1 ✓ Excludi
Slide 34: Asia and Australia
Asia and Australia Main Business: Finance and investment businesses in Asia and Australia Major Subsidiaries（Asia and Australia） Country Company Name Primary Business Established Segment Assets NET* Segment Revenue (Region) (as of March 31, 2020) （FY 20.3） Leasing, Automobile ORIX Asia Limited Hong
Slide 35: Appendix
Appendix Copyright © 2020 ORIX Corporation All rights reserved. 35
Slide 36: Our View for FY21.3
Our View for FY21.3 (Announced at Annual financial results briefing on May 22, 2020) ✓ Major battle against COVID-19 may not conclude in the 1H both in Japan and the rest of the world If the situation gradually normalizes by the end of Q3, the net income is estimated at about 180.0 ~ 200.0 JPY Bn If
Slide 37: Stress Test of Liquidity
Stress Test of Liquidity (Announced at Annual financial results briefing on May 22, 2020) ✓ No concern over current funding environments. Even with stressed assumptions and possible 500 JPY Bn worth new investments and/or lending, the liquidity at the end of FY21.3 still exceeds 600 JPY Bn ✓ Priorit
Slide 38: Medium to Long-term Direction
Medium to Long-term Direction (Announced at Q2 financial results briefing on October 29, 2019) Basic Concepts Continue Growth Realize profits at the right time after adding value to the existing investments. Maintain the ROE target 11% or higher for medium to long term Never Miss Business Opportunit
Slide 39: Medium to Long-term Direction
(Announced at Q2 financial results Medium to Long-term Direction briefing on October 29, 2019) ✓ Promoted financial soundness after the global financial crisis. Managed to achieve major improvement since then Transition of key financial indicators FY2008.3 FY2020.3** 1. Financial leverage D/E ratio
Slide 40: About ORIX: Proven Track Record of Profitability
About ORIX Proven Track Record of Profitability ✓ ORIX has achieved 55 years of sustained, profitable growth (JPY Bn) Net Income Attributable to ORIX Corporation Shareholders 350 300 250 FY2009.3 FY2002.3 Burst of IT bubble Global financial crisis 200 FY1998.3 150 Asian currency crisis FY1993.3 Burs
Slide 41: 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 Copyright © 2020 ORIX Corporation All rights reserved. 41
Slide 42: 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 Corporate Financial Services Finance and fee business; leasing and rental of automobiles, electronic measuring 10% instruments and IT-related equipment
Slide 43: 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 © 2020 ORIX Corporation All rights reserved. 43
Slide 44: 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% 4.00% 80% as of June 30, 2020 3.00% 60% 2.00% 40% 1.00% 20% CP 0.6% 0.00% 0% 16.
Slide 45: 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) 8 Total ORIX Corporation 7 Shareholders’ Equity 2.5× 2.4× 6 2.3× 2.3× Deposits 2.2× 2.2× 5 1.9× 1.7× Short- and Long-Term Debt 1.6× 1.6× 4 1.5× 1.5× （Excluding Deposits
Slide 46: Financials (3) Bond Maturity Ladder
Financials (3) Bond Maturity Ladder ✓ Leveled out annual redemption amounts by dispersing bond maturities (JPY Bn) Maturity Ladder (as of June 30, 2020) 150 100 Matured ORIX Domestic Bond for Institutional Investors * 50 ORIX Domestic Bond for Retail Investors ORIX Overseas Bond / Local Subsidiary B
Slide 47: Business Portfolio in Three Categories
Business Portfolio in Three Categories Finance Operation Investment Main Risk Credit risk Operation/Business risk Market risk Categories Capital Requirement Low Medium-High High Environment/ Japan Overseas Financial Services Maintenance Services Others Fixed Income Tangible Assets Equity Infrastruct
Slide 48: Shareholders Return
Shareholders Return (Announced at Annual financial results briefing on May 22, 2020) ✓ Full year dividend at 76 yen per share in FY20.3, payout ratio at 32%. Interim dividend forecast in FY21.3 is 35 yen ✓ Raise the payout ratio to 50% for FY21.3 only ✓ Consideration of the share repurchase after th
Slide 49: 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 50: 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,