ORIX Corporation
Second Quarter Consolidated Financial Results
For the Six-Month Period Ended September 30, 2022
Makoto Inoue

Member of the Board of Directors
Representative Executive Officer
President & CEO

November 7, 2022

1

Company Name
(TSE: 8591; NYSE:
IX)

Copyright © 2022 ORIX Corporation All rights reserved.

Net Income & ROE✓

121.8 Bn JPY in FY23.3 H1 net income* (down 17% YoY), annualized ROE of 7.4%✓

59.9 Bn JPY in 2Q net income, down 1.9 Bn JPY (down 3%) QoQ amidst a tough macro climate
Quarterly

Full-Fiscal Year
400
13.0%

120

350

12.1%

(Bn JPY)

11.6%

9.9%

10.3%

300

100

6.4%

6.8% 5.9% 6.5% 6.8%

8.6%

10.6%

12.6%

8.3%

7.5% 7.2%

8.0%

80

250

200
3.0%

(Bn JPY)
60

150

313.1

323.7

100.8

312.1

302.7

40

192.4

100

-2.0%

20

50.0

43.8

48.2

50.4

Q1

Q2

Q3
21.3

Q4

65.2

81.5

64.7

61.9

Q3
Q4
22.3
ROE

Q1

59.9

50

0

0

-7.0%

18.3

19.3

20.3

21.3

Net Income

ROE

22.3

* Net income refers to Net Income Attributable to ORIX Corporation Shareholders

Q1

Net Income

Q2

Copyright © 2022 ORIX Corporation All rights reserved.

Q2
23.3

2

Breakdown of Segment Profits
FY23.3 H1Segment Profits

Base Profits

144.8 Bn JPY, down by 18% YoY (-32.2 Bn JPY)
Profits relatively stable, as sharp gains in Aircraft and Ships and healthy earnings in Environment andEnergy, Asia and Australia offset lower profits in Insurance, ORIX USA, ORIX Europe

Investment
Gains

25.1 Bn JPY, down by 52% YoY (-27.3 Bn JPY)
Profits lower as previous period saw Safie IPO, multiple PE exits in the US

170.0 Bn JPY-26% YoY(-59.6 Bn JPY)
600.0 Full-Fiscal Year

531.4

Quarterly

189.0(Bn JPY)(Bn JPY)

500.0

413.1

429.6

400.0
92.8

114.2

300.0

311.3

128.0

54.5

229.5

200.0

52.4
320.3

342.4

315.4

101.5
170.0

129.5
105.4

24.2

28.2

177.1

103.8
144.8

73.3

22.3 H1 23.3 H1

1Q

85.9
11.4

84.0
13.7

67.0

74.5

70.3

4Q

1Q

7.1

25.1

256.8

100.0

196.5

98.3

0.0
19.3

20.3

21.3

Base profits

22.3

Investment gains

2Q

22.3

3Q

Base profits

23.3

2Q

Investment gains

Copyright © 2022 ORIX Corporation All rights reserved.

3

Segment Profits✓

4 segments higher YoY, Aircraft and Ships in particular✓

Profits were lower in Insurance, ORIX USA, ORIX Europe, but Aircraft and Ships, Asia and Australia ended
higher. Overseas profit ratio was more than 40%(Bn JPY)
23.3

22.3

Segment Profits
Breakdown

（43%）

14%

10%

21%

FY23.3 H1Segment Profits Total

170.0 Bn JPY

13%

11%

Q1

Q2

H1

Corporate Financial Services
and Maintenance Leasing (Ex.
Yayoi)

43.1

28.5

15.7

19.8

35.5

+4.0

-7.6

Profits up QoQ but down YoY owing to absence of valuation gains from investee
booked in FY22.3 H1

Yayoi

3.2

165.0

0

0

0

0

-3.2

Exit completed in 4Q of FY22.3

2

Real Estate

23.0

9.0

11.9

7.0

18.9

-4.9

-4.1

Lower YoY as FY22.3 profits were skewed towards H1. Facilities operations recovering

3

PE Investment andConcession

1.6

-13.3

2.2

1.7

3.9

-0.5

+2.3

Profits up on robust earnings at investees, concession business earnings recovering

4

Environment and Energy

9.5

-6.5

4.6

6.0

10.6

+1.4

+1.1

Japan solar business strong, robust electric power selling revenues in overseas
renewable energy business5

Insurance

32.3

21.0

10.9

2.1

13.0

-8.8

-19.3

Investment income solid, but profits lower on increase in COVID-19 related payouts

6

Banking and Credit

20.9

20.6

7.2

8.0

15.2

+0.7

-5.7

Bank: lower from one-time profit in previous period, Credit: lower from higher
advertising costs for new product7

Aircraft and Ships

0.4

-2.7

5.4

5.2

10.6

-0.2

+10.3

Ships: Significantly higher, Aircraft: earnings improving due to market recovery

8

ORIX USA

47.1

28.1

6.0

15.6

21.6

+9.5

-25.5

Lower owing to sale in PE business in previous period and decrease in Lument
earnings

9

ORIX Europe

28.5

20.9

9.3

7.1

16.4

-2.2

-12.0

Lower as fall in equity market led to decrease in AUM

10Asia and Australia

19.9

31.2

12.6

11.5

24.1

-1.1

+4.2

New business deals recovering following COVID slump, also higher from sale of stakein an affiliate

Total

229.5

301.9

85.9

84.0

170.0

-1.9

-59.6

-

2%

6%

6%

9%

8%

Highlight

YoY

H2

1

Overseas

QoQ

H1

*

*The 5.6 Bn JPY difference between the FY23.3 H1 segment profits total of 170.0 JPY and the pre-tax profits of 164.3 Bn JPY is Attributable to the Adjustment of
Segment Profits to Consolidated Statement Amounts

Copyright © 2022 ORIX Corporation All rights reserved.

4

Segment Assets✓

Assets increased, mainly in overseas segments, due to changes in forex
Corporate Financial Services assets shrink as continue to carefully select new business deals, Auto lower
from new car supply constraints(Bn JPY)✓

23.3 H1

Segment Assets
BreakdownOverseas
（34%）

11%
3%

13%

7%
FY23.3 H1Segment Assets Total

12.4 Tn JPY

3%
6%

6%
17%
22%

ROA*

Highlight

1,476.2

-40.6

3.3%

Balance of leases lower owing to careful selection of new business deals in low
interest rate environment

2 Real Estate

907.9

-2.2

2.9%

Flat overall, as asset recycling-related property sales offset increase in newinvestments

3 PE Investment and Concession

370.1

+16.5

0.7%

Higher from new investment in HEXEL Works

4 Environment and Energy

772.9

+69.3

2.0%

Assets increased, mainly due to changes in forex

5 Insurance

2,052.7

-19.5

0.9%

Excluding impact from forex changes and market slump, assets mostly flat

6 Banking and Credit

2,677.4

-9.8

0.8%

New loan originations were strong, but flat owing to asset securitization

7 Aircraft and Ships

752.6

+68.5

2.2%

1,624.3+260.2

2.3%

1

12%

Vs. 22.3

Corporate Financial Services
and Maintenance Leasing

8 ORIX USA

Assets increased, mainly due to changes in forex
9 ORIX Europe
10 Asia and Australia

Total

409.5

+7.6

6.1%

1,399.1

+93.0

2.7%

12,442.6+443.1

2.0%*Segment asset ROA is calculated using after-tax unit profits

Copyright © 2022 ORIX Corporation All rights reserved.

5

FY23.3 H1 Results and Full-Year Outlook

FY23.3 H1 Results

Full-Year Outlook*1

FY25.3 Target*2

Net income

121.8 Bn JPY

250.0 Bn JPY

440.0 Bn JPY

ROE

7.4%

7.5%

11.7%

Financialsoundness

Shareholder
returns

Maintained an A-rating equivalent financial base
✓ Dividends: Payout ratio of 33% or previous fiscal year’s dividend, whichever is higher(FY22.3 dividend was 85.6 JPY per share)✓ Share buybacks: To be carried out opportunistically (50 Bn JPY*3 for FY23.3)*1 Calculated assuming FY23.3 H1 macro climate continues through H2 FY23.3*2 No change from Medium-term Direction announced in May 2022
*3 Executed 38.7 JPY Bn JPY of buyback program as of October 31

Copyright © 2022 ORIX Corporation All rights reserved.

6

Operating Environment and Outlook
Operating environment

ORIX

Surging resource prices, inflation, higher
interest rates, Yen depreciation

Diversified portfolio, healthy base profits

Global slump in equity markets

Stable cash flows

Heightened recession concerns

Financial soundness, ample pipeline

More prudent approach for lending,investment decisions

Accelerating reopening

Maintain Medium-term Direction
Aim to achieve FY25.3 net income target of 440.0 Bn JPY, ROE of 11.7%
Copyright © 2022 ORIX Corporation All rights reserved.

7

ORIX USA, Insurance, PE Investment and Concession Segments✓✓

Amidst ongoing uncertainties in US business climate, promoting enhanced risk management and shift to third-party
asset management model at ORIX USA
In Insurance segment, H1 is bottom for COVID-related impact. In PE Investment, taking cautious stance on timing of exits

ORIX USA

Insurance

PE Investment and Concession

FY23.3 Forecast (Segment profits): 45.0 Bn JPY

FY23.3 Forecast (Segment profits): 35.0 Bn JPY

FY23.3 Forecast (Segment profits): Break even

Current situation (FY23.3 H1)

Before eligibility change (Through Sept 25, 2022)

Origination volumes at Lument *1 down
◼ PE exits down YoY
 Healthy balance sheet, centered on
credit business BFIM*2 earnings steady◼

Improvement initiatives

After eligibility change (Post-Sept 26, 2022)

Promoting shift to third-party asset
management model, focus on increasing
capital mandates
 Strengthening risk management function(personnel, operations)



◼






FY23.3

COVID-19 related payout expenses hit
21.2 Bn JPY (H1)
Investment income increasing
Growth in new policies

◼
◼

◼




Cautious on exit timing
Recovery in international flights at
Kansai Airports to boost profit
contributions from Q4 on
Strong pipeline, incl. large-scale projects

From FY24.3～

Expect COVID-related payouts to
declineContinued steady investment income
Ongoing growth in new policies

Anticipate exits from investees

New investees boosting base profits

Kansai Airports to benefit fromrecovery in international flights*1 Lument: Provides loans for multi-family housing, other property types. (Originates loans, then sells to GSEs after short holding period. Services loans post-sale, earning fees.)*2 BFIM： Largest LIHTC syndicator in the US. LIHTC（Low-Income Housing Tax Credits） are a tax incentive program designed to promote the supply of affordable housing.
Copyright © 2022 ORIX Corporation All rights reserved.

8

Capital Recycling - Profit Growth✓ Accelerated Capital Recycling model led to company-wide net income growth of 2.8X, CAGR of 12%(FY22.3 vs FY13.3)✓ Also strengthened financial base, reducing D/E ratio from 2.7X to 1.5X over same period
RoadSafe

Acquisition/newbusiness

Yayoi
QRacian

Sale

Houlihan Lokey

Monex

ORIX Electric PowerORIX Living
ORIX Golf

Yayoi

Robeco SAM

RoadSafe

QRacian3,500億円

312.1Bn JPY

3.0倍

3,000億円
2,500億円

2.7X(D/E ratio)

Up.2.8X/
CAGR12%2.0倍

2,000億円
1,500億円

111.9 Bn JPY
1.5X(Net income)

1,000億円

1.0倍

500億円

0.0倍

0億円

13.3

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

Copyright © 2022 ORIX Corporation All rights reserved.

22.3

9

Capital Recycling – Model for Adding Value✓ Utilizing its finance and operational experience, ORIX originates projects, executes investments, improves
the value of investees, and makes decisions to hold or sell
✓ Strengthens quality and number of new investments while recycling capital, leading to growth in baseprofits and investment gains
Hold / Sell
(Book investment gains)

Model for Adding Value
Improve value of investees(Contribute to base profits)Execute investments

Originate projectsGroup network
Assessment (financing,
operations)

Focus on entry price

IRR of 15-20% or higher

Investment and Credit
Committee

ROE/ROA✓ ROIC/WACC✓ IRR/MOIC etc.
✓

•
•
•

Support customer/sales
route development

Change business model
価値向上
through hands-on
operation
DaikyoRobecoKansai Airports, others (P. 11)



Objective decision (holdor sell)Flexible investment
strategy
Investment and Credit
Committee•••

Houlihan Lokey
Yayoi
QRacian, others (P. 12)

Capital Recycling
Copyright © 2022 ORIX Corporation All rights reserved.

10Capital Recycling – Base Profits✓ Many investees entering ORIX Group have seen profit expansion, contributing to Group’s stable growth✓ Provides ongoing boost to base profits, cash flows; realizes synergies
DaikyoRobeco Group

1. 2005
2. Growth in condo management, construction
businesses(made Anabuki Construction a subsidiary)
3. 20.0 Bn JPY in base profits each FY
4. Jointly developing commercial complexes
with ORIX

1. 2013
2. Posted record high AUM of 339 Bn EUR on ESG
investment wave in FY22.3(FY22.3 AUM was 1.65X FY13.3 level)
3. 35-45 Bn JPY in base profits each FY
4. Contributes to Group sustainability promotion
efforts

Kansai Airports

ORIX Bank

1. 2016
2. Partnership with Vinci led to increase in airport
passenger volume (FY19.3 volume grew to
1.26X FY16.3 level)
3. 19.5 Bn JPY in base profits (FY20.3)
4. Realizes synergies with ORIX’s other Kansai area
operations (real estate, MICE IR)

1. 1998
2. Boasts high profitability supported by uniquebusiness model (ROA 0.7% > 0.3% avg. forJapanese megabanks)
3. 20-30 Bn JPY in base profits each FY
4. Focusing on lending to renewable energy
industry※ 1. Year entered ORIX Group, 2. Growth following entry into ORIX Group, 3. Profit scale, 4. Examples of synergies
Copyright © 2022 ORIX Corporation All rights reserved.

11

Capital Recycling – Investment Gains✓ Developed exit strategies for both pure investments assuming an exit, and companies joining ORIX Group✓ Strengthened financial base through large-scale exits while continuing new investments
Yayoi

QRacianHoulihan Lokey

1.

Business software1.

US investment bank2.

2014 (entered Group)2.

2006 (entered Group)3.

2022 (trade sale)3.

2015 (IPO)

4.

Registered users doubled

4.

IPO

5.

163.0 Bn JPY (MOIC 4.7X/IRR 24%)5.

670 Mn USD (MOIC 3.1x/IRR 16%)

1.

Emergency water-related repair
services2.

2016 (PE investment)

3.

2019 (trade sale)

4.

EBITDA grew by 1.6X

5.

16.0 Bn JPY (MOIC 3.2X/IRR 36%)

ORIX Electric Power

Robeco SAM (partial sale)

RoadSafe

Electric power supply tocondominiums

1.

ESG ratings agency

2.

2013 (entered Group)

3.

2019 (trade sale)2.

2010 (established by ORIX Group)

4.

Pioneer in ESG ratings field

3.

2017 (trade sale)5.

115 Mn USD (MOIC/IRR not disclosed)

4.

Grew to over 70,000 households

5.

12.0 Bn JPY (MOIC/IRR not disclosed)

1.

1.

Traffic infrastructure safety services

2.

2016 (PE investment)

3.

2021 (trade sale)4.

US nationwide market share nearly
doubled5.

80 Mn USD （MOIC2.7x/IRR19%）※ 1. Business overview, 2. Timing of acquisition/capital participation/founding, 3. Exit timing, 4 .Growth post-acquisition/capital participation, 5. Investment gain (pre-tax)/
investment return
Copyright © 2022 ORIX Corporation All rights reserved.

12

Focus Areas and Pipeline✓ Ample investment pipeline of more than 3 Tn JPY✓ Near-term focus mainly on domestic PE investments (including large-scale projects), as well as overseas
renewable energy, Real EstateBusiness area

Domestic PE
Overseas renewableenergyReal Estate

Aircraft leasing

Other

Major pipeline projects◼

Large-scale projects◼

Roll ups, business succession deals

FY23.3 H2 or FY24.3

400 Bn JPY◼

Pipeline: 19 GW* in generating capacity

Total project value

17,000 Mn USD*◼

Additional equity investments in Elawan/Greenko

Additional investments

500 Mn USD

Completion in FY23.3 H2(total project value)
Completion in FY24.3 and beyond(total project value)

30 Bn JPY

170 Bn JPY

FY24.3 delivery

1,200 Mn USD

Planned investment

210 Bn JPY◼

Logistics facility projects (Tokyo, Nagoya,
Osaka metro areas)◼

Mainly new narrow-body aircraft (20 aircraft)◼

MICE-IR (Scheduled to open in fall/winter2029 or later)*Gross amount of overseas renewable energy projects under construction or in development.
Copyright © 2022 ORIX Corporation All rights reserved.

13

Reopening✓ Aircraft leasing continues to recover worldwide✓ Real estate operations, concession should head towards full-fledged recovery following relaxation ofJapan’s border restrictions
Segment profits* trends
Aircraft and Ships
Concession

Real estate operations
Three business total

Business

Macro Indicators
Global travelers (vs 2019, announced by ICAO)
100%

70.0 Bn JPY

60.0 Bn JPY

Aircraft andShips

N. America

Europe

Asia

80%
60%
40%

(Aircraft leasing)
20%
0%Apr-20Jul-20

Oct-20Jan-21

Occupancy rates of ORIX facilities

Inns

100%

Real estate
operations

3.5 Bn JPY(Hotels and inns)

Apr-21

Jul-21

Oct-21

Jan-22

Apr-22

Jul-22

Jan-22

Apr-22

Jul-22

Hotels (directly operated)

80%
60%
40%
20%
0%
Apr-20Jul-20

Oct-20Jan-21

Apr-21

Jul-21

Oct-21

Kansai Airports (three airports) passenger numbers (vs 2019)-20.0 Bn JPY
20.3

21.3

100%

-24.0 Bn JPY
22.3

International routes (Kansai International)

Domestic routes (3 airports)

80%

22.9 (H1)

25.3 (Target)*Real estate operations figure calculated by subtracting real estate segment investment gains frominvestment and operations unit segment profit. Reflects change in method of allocation interest
expense and SG&A expenses to segment profits from FY23.3 Q1.

Concession

60%(Kansai Airports)

40%
20%
0%
Apr-20Jul-20

Oct-20Jan-21

Apr-21

Jul-21

Oct-21

Jan-22

Copyright © 2022 ORIX Corporation All rights reserved.

Apr-22

Jul-22

14

Shareholder Returns✓

FY23.3 full-year dividend: 85.6 JPY per share (previous fiscal year’s dividend) or a dividend payout ratio of 33%, whichever is higher✓

Share buybacks to be carried out opportunistically, 50 Bn JPY planned for FY23.3 (38.7 Bn JPY already executed as of end-Oct 2022)

Dividend per Share and Payout Ratio

Share Buyback and Total Return Ratio
50%(JPY) （円）

78%

200

69%

(Bn JPY)

130

49%
59%

120

47%

110

33%

49%

40%

150
100

90

30%

32%
29%

80

70

23%
50

13%

14%

13%

16%

11%

66
36

20

10

8

9

13

11.3

12.3

13.3

20%

100

30

0

27%

20%

60

40

25%

46

76

78

76

11%

14%

Full year dividend

18.3

20.3

21.3

Payout ratio

22.3

Executed

39.1
10.9
9%

50

19.3

50.0 38.7

19%

52

17.3

54.3

29%

16%

47.2
16.3

45.7

102.7

0

15.3

23%

Planned
39%

85.6

23
14.3

11.3

30%

23.3
(Forecast)

8.6

9.7

15.9

11.3

12.3

13.3

60.0

68.3

84.6

97.4

96.4

96.1

-1%

Forecasted
total
dividend

-11%

30.2
-21%

14.3

15.3

Total dividend

16.3

17.3

18.3

Share buybacks

19.3

20.3

21.3

22.3

Total return ratio

Copyright © 2022 ORIX Corporation All rights reserved.

23.3(Forecast)

15

ESG
✓

Setting ESG-related key goals and issues and strengthening disclosure have led to improved ratings/scores by ESG rating
agencies, wider inclusion by ESG indices
ORIX now included in four of five ESG indices (for Japanese stocks) adopted by Government Pension Investment Fund (GPIF)✓

ORIX’s Board of Directors now comprised by a majority of outside directors. Making progress towards achievement of otherkey goals, including GHG emission reductions*Link to ORIX Sustainability Report 2022 here

Improved Ratings/Scores by ESG Rating Agencies
ESG Rating Agency

MSCI
FTSE
Sustainalytics
DJSI
CDP

Rating/Scores changes (Timing of upgrade)

A→AA (Feb 2021)

ESG-related Key Goals (announced Nov 2021)
1. Outside directors to account for over half of the composition of the ORIX Group
Board of Directors by the General Meeting of Shareholders set to be held in June 2023.

“Leader among 44 diversified financial industry peers”

2. Female directors to account for over 30% of the composition of the ORIX Group
Board of Directors by the end of the fiscal year ending March 31, 2030.

2.1→3.4 (Sept 2022)

3. Female employees to account for over 30% of management positions at ORIX Groupby the end of the fiscal year ending March 31, 2030.

Selected as Sector Relative Index constituent

28.4→20.3* (Oct 2022)
Ranked 168 out of 899 in industry

35→47 (Sept 2022)
Industry avg. score: 21

D→B- (Dec 2021)
Progress in efforts to combat climate change
recognized* For Sustainalytics, a lower score indicates a lower risk (under 20.0 considered ‘low risk.’)

4. Reduce ORIX Group GHG (CO2) emissions by 50% compared to the fiscal year ended
March 31, 2020 by the end of the fiscal year ending March 31, 2030.
5. ORIX Group to achieve net zero GHG (CO2) emissions by the end of the fiscal year
ending March 31, 2050.
6. Reduce ORIX Group’s investment and credit balance in GHG (CO2) emitting
industries* by 50% compared to the fiscal year ended March 31, 2020 by the end of
the fiscal year ending March 31, 2030.
7. ORIX Group to achieve a zero investment and credit balance in GHG (CO2) emitting
industries* by the end of the fiscal year ending March 31, 2040.
* Refers to the fossil fuel mining, palm oil plantations, and forestry financed by some ORIX Group overseas subsidiaries

Copyright © 2022 ORIX Corporation All rights reserved.

16

Segment Performance

Copyright © 2022 ORIX Corporation All rights reserved.

17

Corporate Financial Services and Maintenance Leasing
YoY -10.8 Bn JPY (-23％)

Segment Profits: 35.5 Bn JPY✓ Profits healthy if investment gains from Yayoi and investee IPO, valuation gains on✓

Corporate Financial Services: Continued to be careful in selecting new businessdeals in low interest rate environment, leading to reduction in balance of leases
and loans✓

Auto: New executions decreased due to the shortage of new auto supply, leading
to a reduction of assets

remaining IPO stake excluded✓ Auto: Strong used car market, sales policy emphasizing profitability both helped

maintain a high level of profits✓ Rentec: Profits held steady at year-earlier level due to PC, other rental demand

Segment Profits
Full-Fiscal Year

YTD -40.6 Bn JPY (-3%)

Segment Assets: 1,476.2 Bn JPY

Yield on Loans

Segment Assets・ROA
Six-month Basis(Bn JPY)
1,676.1

239.8

193.5

14.7
(Bn JPY)

7.5

46.3

37.9

11.7

58.7
9.8

25.6 6.6 25.8 6.0

24.6
3.1
10.5 3.4

18.8

17.0

19.0

20.3

21.3

22.3

Corporate Financial Services

6.8

15.4

9.3

H1

H2

Yayoi

6.8

3.3%

2.6
17.1

1.9
H2

H1

22.3

Auto

728.5

707.2

21.3

22.3

0

2.3%

2.3%

291.8

296.2

284.9

282.4

4Q

1Q

0

2.3%

21.9

2.3%

662.0
0

95.0

2.3%

(Bn JPY)

165.0

3.2

7.7

21.3

675.0

35.5

18.8

141.6

10.3%

706.3

34.1

168.2

1,476.2

134.6

19.1

7.2

62.5

1,516.8

146.4

672.6

6.7
H1

23.3

RentecCorporate Financial Services
Auto23.3 H1
Yayoi
RentecSegment ROA (annualized and after-tax)

3Q

22.3

Installment Loans

23.3

2Q

Yield on Loans

Yield on loans ＝ finance revenues classified as loan interest ÷ averagebalance of installment loans

Copyright © 2022 ORIX Corporation All rights reserved.

18

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

AutoRentecCore platform for cross-selling ORIX Group products & services

World leader in vehicles undermanagement

Leading equipment rental company

Nationwide sales network

Vehicles under management:
1.423 Mn*1

Partner with Group companies to offer solutions for
SMEs, middle-market firms

Offers wide range of products andservices, ability to make complex
proposals an advantage

Real Estate

PE Investment• Real estate
brokerage
services• Retail property,
building leasing• Succession support,other sourcing/exit
opportunities• Introduce PE
investees to otherclients

Environment andEnergyAircraft and Ships• PPAs, in-house
power
generation• Introduce
aircraft, ship
investment
opportunities• Power retailer tocorp. clients・Leased vehicles (No. 1 in industry*2
・Rental cars (No. 2 in industry )*1)Units in inventory:

37,000 types,*3
2.5 million units
Japan’s largest rental equipment
company, offers specialized services
・Electronic measuring instruments, ICT・related equipment rental*2・Car sharing vehicles (No. 3 in industry )・3D printer, next-generation robot rental
・5G adoption support

・ Outsourced 3D printing services*1 As of end-September 2022
*2 Based on ORIX Auto data as of end-March 2022
*3 As of end-March 2022

Copyright © 2022 ORIX Corporation All rights reserved.

19

Real Estate
YoY -4.1 Bn JPY (-18%)

Segment Profits: 18.9 Bn JPY

YTD -2.2 Bn JPY (flat)

Segment Assets: 907.9 Bn JPY✓✓ Investment gains realized on sale of logistics facilities, rental condos✓ Facilities operations: Occupancy rates improved at both hotels and inns,

Assets mostly flat YoY as asset recycling related-sales, mainly of
logistics facilities, offset new investments

leading to earnings improvement✓ Daikyo: Lower YoY as profits skewed towards H1 in FY22.3, but earnings solid inline with plan
AUM

Segment Assets・ROA

Segment Profits(Bn JPY)

Six-month Basis

Full-Fiscal Year
(Bn JPY)

872.1

910.1

907.9

240.1

240.5

23.0

79.6

217.8

18.9

20.8
14.2

(Bn JPY)

13.2
9.0

32.0
58.8

24.4
20.0

10.2

9.0

20.3

21.3

12.0

6.8

9.8

4.3

665.5

595.6

738.5

659.7

673.9

681.0

684.2

682.9

683.0

18.3

19.3

20.3
OAM*

21.3
ORIA**

22.3

22.9

2.2
-2.1

22.3
H1

H2

21.3

RE Investment and Facilities Operation

633.8

2.9%

2.5%

2.0%

9.9

425.5

667.4

16.2

5.9

22.2
2.2

670.0

654.3

538.0

DAIKYO

21.3
H1

H2

22.3

H1

23.3

22.3

23.3 H1

RE Investment and Facilities Operation
DAIKYO
Segment ROA (annualized and after-tax)*ORIX Asset Management Corporation（J-REIT）
AUM for February are shown as the AUM for March** ORIX Real Estate Investment Advisors Corporation（Private Real Estate Fund）

Copyright © 2022 ORIX Corporation All rights reserved.

20

Real Estate – About the Business
Main Business: Real estate development, rental and management; facilities operation; real estate asset management
Segment Assets（as of end-Mar, 2022）
Primarily leased
logistics facilities,
office buildings, andretail properties

Primarily DAIKYO
condominiums

Others7%

Unrealized gains on rental
properties*

Segment Asset Trends

25%(Bn JPY)

1,808.8(Bn JPY)

Insvestment in
Affiliates 12%
Inventories
11%

Property under
Facility
Operations*2
18%

80

8%

Investment in
operatingleases*1
52%

Primarily
hotels & inns

*1: Includes net investment in leases and advances for finance leaseand operating lease*2: Includes advances for property under facilities operations

70

70.1

73.7

71.9
60.1

60

910.1

63.9

50
40
30
20
10
0

11.3

22.3
Real Estate Segment Assets
Ratio to 10 Segment Assets in total

18.3

19.3

20.3

21.3

22.3

*Includes rental properties in segments other thanReal Estate segment.
Does not include properties in facilities operation

Copyright © 2022 ORIX Corporation All rights reserved.

21

PE Investment and Concession
Segment Profits: 3.9 Bn JPY

YoY +2.3 Bn JPY (+142%)

YTD +16.5 Bn JPY (+5%)

Segment Assets: 370.1Bn JPY✓ PE Investment: Profits increased due to steady performance of✓Increased due to new investment in HEXEL Works

investees✓ Concession: Earnings on recovery track thanks to increase inpassengers
Segment Profits

Segment Assets・ROA

Full-Fiscal Year

(Bn JPY)

Six-month Basis(Bn JPY)

4.1

3.9

1.6

44.1

378.7

50.6
4.4

-3.5

24.7

3.4

-8.5

21.3

-5.0

-6.3

-4.7
-8.3

328.1

-0.6

11.9

20.3

34.2

38.6

8.6

7.9

7.5

19.5

370.1

353.6

335.9

315.0

-0.4
-11.3

-5.0

-11.7

-13.3

22.3

H1

H2

21.3
PE Investment

Concession

H1

H2

22.3

0.7%

-0.1%

-3.2%

H1

23.3

21.3
PE Investment

Concession

22.3

23.3 H1

Segment ROA (annualized and after-tax)

Copyright © 2022 ORIX Corporation All rights reserved.

22

PE Investment and Concession – About the Business✓Currently invested in 17 companies (as of end-March 2022); aim to develop new business segments for ORIX
Investment Track Record

Leveraging our broad network andexperience we have established asuperior investment track record
Target companies

3 – 5 years or
longer(EV: Tens of Bn JPY)

(per project)since 201226 companies

Track record

30% IRR
Average achieved in 8 exits
since 2012*1*1 Excludes sale of Kobayashi Kako assets in March 2022.

IT Services

Initial investment

Business

Management
oversight/support

Koike Co., Ltd.

2017

Manufacturer of electronic materials

Hands-on involvement

Primagest, Inc.

2017

Information processing service

APRESIA Systems, Ltd.

2020

Development, manufacture of networking
equipment

HC Networks, Ltd.

2020

Design, configuration of information
network systems

Informatix Inc

2020

Development of geographic information
systems

Investment span

Small-mid cap
focus

Total investments

Investee Companies

M&A, Tie-up
Strategy
Expansion via M&As &tie ups with peer,
adjacent industry firms

Logistics/Rental Services, Dairy

Marketing support

Cornes AG CORPORATION

2018

Total engineering service for dairy,
agriculture-related equipment

Customer, sales
channel expansion
using ORIX network

Wako Pallet Co., Ltd.

2019

Seller and lessor of logistics equipment

SUGIKO Co.,Ltd

2020

Scaffolding and temporary construction
materials rental company

INNOMEDICS Medical
Instruments, Inc.

2015

Sales of medical equipment and devices

Sasaeah Pharmaceutical Co.,
Ltd.*2

2016

Veterinary pharmaceuticals

Healthcare

Professional
human resources
Support from
specialized staff*2 Formed via a merger of veterinary pharmaceutical maker (2016 ORIX investee) Fujita Pharm and veterinary vaccine
manufacturer Kyoto Biken, began combined operations as Sasaeah holdings in 2022.

Copyright © 2022 ORIX Corporation All rights reserved.

23

Environment and Energy
YoY +1.1 Bn JPY (+11％)

Segment Profits: 10.6 Bn JPY

YTD +69.3 Bn JPY(+Y55.6 Bn JPY from forex)

Segment Assets: 772.9 Bn JPY✓ In Japan, solar business performed well due to higher power generation from good✓

Assets increased due to changes in forex

weather✓ Overseas, revenues from retail power sales were strong thanks to higher prices inelectricity spot market
Segment Profits

Renewable Energy Operating
Capacity (in Operation) Outlook*

Segment Assets・ROA

Six-month Basis

Full-Fiscal Year

(Bn JPY)

10 GW(Bn JPY)

6 GW
26.9

4.0%
13.2

703.6

13.7
10.6

9.5

10.1

489.2

21.3

0.4%

1 GW

22.3
-6.5

Overseas
Domestic

21.3
H1

Environment and Energy

H2

21.3

H1

H2

22.3

3.5 GW

2.0%

3.0
20.3

(Pre-sale, 7 GW)

772.9

H1

23.3

Environment and Energy

22.3

23.3 H1

19.3

22.9

25.3 (Planned) 30.3 (Target)

Segment ROA (annualized and after-tax)* Reflects capacity proportionate to ORIX equity stake(domestic + overseas)

Copyright © 2022 ORIX Corporation All rights reserved.

24

Global Renewable Energy Portfolio（as of end-September 2022）✓ Total net owned operating capacity of 3.5 GW worldwide✓ Total operating capacity (incl. assets in operation, under construction, and in development): Elawan 9 GW, Greenko 18 GW

Spain & other locations

・Elawan (80% stake)Wind, solar assets
Capacity: 1,280 MW

USA & other locations

China

Japan

・Beijing Energy (4.8% stake)Solar, hydro assets
Capacity: 5,020 MW

Solar Capacity: 930 MW*
Wind, geothermal, biomass
Capacity: 20 MW・Ormat Technologies (19.7% stake)
Geothermal Capacity: 1,370 MW
Storage battery Capacity: 90 MW
・ORIX Corporation USA (100% stake)Solar Capacity: 230 MW

India
・Greenko (20.2% stake)Wind, solar, hydro assets
Capacity: 7,180 MW* Solar business in Japan has cumulatively sold more than 1 GW in panels, in addition to owned capacity.
Business boasts a strong network of clients committed to renewable energy.

✓ 3.5 GW figure above is net owned operating
capacity, adjusted to reflect ORIX’s ownership stakeon a per company or project (if JV) basis✓ Capacity figures for each entity are on a grosscapacity basis✓ Figures in brackets depict ORIX’s stake

Copyright © 2022 ORIX Corporation All rights reserved.

25

Insurance
YoY -19.3 Bn JPY (-60%)

Segment Profits: 13.0 Bn JPY

Segment Assets: 2,052.7 Bn JPY✓ Rising COVID-19 infections led to an increase in payout-related expenses, and profits

YTD -19.5 Bn JPY (+74.6 Bn JPY from forex)✓ Excluding impact from forex changes, market slump, assets

declined (total 1H payout-related expenses: 21.2 Bn JPY)

mostly flat

✓ Growth in policies led to increase in investment income

Segment Profits

Number of ORIX Life Insurance

Segment Assets・ROA

Full-Fiscal Year

Six-month Basis

Policies in Force(Bn JPY)(Bn JPY)(Millions)
34.4

44.3

54.6

53.3

7.8

4.68

32.3

21.0

52.6

Life Insurance

H1

21.3
ex-Hartford Life Insurance *

H2

21.3

21.9

22.3

22.9

2,052.7

1.9%

19.7

0.9%

14.5

-0.5

22.3

2,072.1

1,959.5

2.2%

-6.2

21.3

4.91

1.3 13.0

32.8

29.6
17.2

20.3

4.88

0.7
2.9

46.8

4.84

4.9

20.2

50.5

4.79

-1.5
H2

H1

22.3

21.3

22.3

23.3 H1

H1

20.9

23.3
Life Insurance

Segment ROA (annualized and after-tax)*Hartford Life Insurance was acquired by ORIX Life in 2014, with the merger completed in 2015

Copyright © 2022 ORIX Corporation All rights reserved.

26

Life Insurance – About the Business✓

Omni-channel strategy (including online/mail order) has allowed ORIX Life to post growth in policies well above industry average✓

Shift from mix dominated by third-sector products (such as medical insurance CURE) to a more well-balanced portfolio withintroduction of first-sector products (including whole life insurance RISE, US dollar-denominated whole-life insurance Candle)
Trends in Policies in Force*

Up 2.3x

4.88

Product Portfolio Mix Trends（Annualized premiums for policies in force）

FY14.3（Millions)

2.14
Third-sector
products
63%

14.3

First-sector
products
37%

FY22.3

Third-sector
products
57%

First-sector
products
43%

22.3*Industry-wide, policies in force grew 1.3x during the same period.
Data taken from Japan Institute for Insurance Research statistics andinformation from individual companies’ reporting, compiled by ORIX.

・First-sector products (Death protection, etc.)
・Third-sector products (Heath insurance, Cancer insurance, etc.)
Copyright © 2022 ORIX Corporation All rights reserved.

27

Banking and Credit
YoY -5.7 Bn JPY (-27%)

Segment Profits: 15.2 Bn JPY

Segment Assets: 2,677.4 Bn JPY✓ Banking: Financial revenues remained steady YoY, but profits fell as there

YTD -9.8 Bn JPY (flat)✓ Assets mostly flat

were one-time profits recorded in the previous period✓ Credit: Profits decreased due to aggressive advertising spending associatedwith a new product release
Segment Profits(Bn JPY)

47.7

41.5

38.7

24.1

13.3
11.2

20.9

20.3

28.4

28.2
12.8

21.3

H1

22.3
Banking

Credit

15.6

H2

21.3

2,687.2

2,677.4

177.9

190.7

198.9

20.6

7.2

6.1

8.0
2,512.7

2,496.4

1.2%

14.5

13.7

H1

H2

22.3

ROE

ROA

ORIX Bank

8.6%

0.7%

Megabanks Avg.

7.3%

0.3%

RBAJ Avg. *2

3.9%

0.2%

SARB Avg. *3

2.8%

0.1%

15.2
3.8

26.7

2,690.6

23.6

19.3

12.0

FY22.3 ROE/ROA*1

Six-month Basis

Full-Fiscal Year

(Bn JPY)

Segment Assets・ROA

2,478.5

1.1%
0.8%

11.5

H1

21.3

22.3

23.3 H1

23.3
Banking

CreditSegment ROA (annualized and after-tax)*1 ROE/ROA figures calculated by ORIX, based on datafrom Japanese Banker’s Association FY2021 Financial
Statements of All Banks.
*2 Regional Bank Association of Japan average*3 Second Association of Regional Banks average

Copyright © 2022 ORIX Corporation All rights reserved.

28

Banking – About the Business✓In addition to its mainstay real-estate investment loan business, ORIX Bank is strengthening its financing business toindustries which support a sustainable society✓

By utilizing its trust banking license, will develop and sell financial products, such as securitized loan products✓

Aim to improve ROA and secure sustainable growth while controlling quality, size of asset base

■ ORIX Bank – A more robust business model
Provide financing to businesses■Case study
Sell to investors

Securitization using trust banking function

Priority areas

ORIX Bank Strengths✓ Provided third-party assessed* green loan tofund large solar projects in Niigata Prefecture

Renewable energy
Real estate (residential, logistics
facilities)

Disaster prevention, infrastructure

Supplying green loans
to mega-solar projects

GroupexpertiseStrength inspecificareas

Attractive
products✓ Utilizing trust banking license, securitized thisloan
✓ Helped meet regional financial institutions’needs for ESG investing products

Healthcare＊Green loan was assessed with the highest GA1 rating by Ratings andInvestment Information, Inc. (R&I)

Copyright © 2022 ORIX Corporation All rights reserved.

29

Aircraft and Ships
YoY +10.3 Bn JPY (+2,786%)

Segment Profits: 10.6 Bn JPY

Segment Assets: 752.6 Bn JPY✓ Ships: Profits increased significantly due to well-timed sales of owned ships

YTD +68.5 Bn JPY (+120.1 Bn JPY from forex)✓ Assets increased overall, as forex effects offset sales of owned ships✓ Aircraft: Improved performance due to recovery in air travel market✓ Avolon: Improved performance led to reduction of loss

Owned and Managed Fleet*Six-month Basis

Full-Fiscal Year
(Bn JPY)

ORIX Aircraft Leasing Business

Segment Assets・ROA

Segment Profits

44.5(Bn JPY)
17.4

10.6

105

5.3

27.1
4.9

3.9

1.0

9.5
-11.8

0.4

3.5
1.8

2.1
-2.5

-0.4

21.3

57
52

4.5

752.6

684.1

601.8

40

-2.3
-7.2

2.2%

0.8%

70

100

113

139

151

152

20.3

21.3

22.3

135

-2.7

22.3

15.3

H1
H2
21.3
Aircraft and Ships (excl. Avolon)

-4.6

69

13.0

-0.7%

-2.3
20.3

5.0

100

75

Avolon

H1
H2
22.3

H1
23.3

21.3
Aircraft and Ships

22.3

23.3 H1

18.3

19.3

Managed fleet

22.9

Owned fleet

Segment ROA (annualized and after-tax)

Copyright © 2022 ORIX Corporation All rights reserved.

*Excluding Avolon30

Aircraft and Ships – About the Business
GLOBALLY
DIVERSE（NBV）ORIX Aviation✓ Fully-owned subsidiary

NARROWBODYWEIGHTING（number of aircraft）

14%

Owned
fleet
52

Committed
fleet
0

Average age
6.6 years

21%✓ Mainly trading in second-handmarketOEM
BREAKDOWN（number of aircraft）

39%

42%

✓ Arrangement of aircraft
purchases to third parties, asset

58%

management services

47%✓ S&P servicer rating: Top ranking(Strong)

79%
APAC
Americas
EMEA

Narrowbody

AirbusWidebody

BoeingAvolonAvolon✓ 30% stake (acquired in November
2018)

Remaininglease term
6.3 years

Managed fleet
135

Owned
fleet
518

Committed
fleet
265

22%
31%

32%

✓ Sizable direct orders to aircraft

Average age
6.4 years

46%

manufacturers✓ Direct leasing of fleet✓ S&P: BBBMoody’s: Baa3
Fitch: BBB-

69%
22%

78%
APAC
Americas
EMEA

Narrowbody
Widebody

Remaininglease term
6.8 years

AirbusBoeing(as of September 30, 2022)
Copyright © 2022 ORIX Corporation All rights reserved.

31

ORIX USA
YoY -25.5 Bn JPY (-54%)

Segment Profits : 21.6 Bn JPY

YTD +260.2 Bn JPY (+250.3 Bn JPY from forex)

Segment Assets : 1,624.3 Bn JPY✓ Private Equity: Multiple exits in the previous period led to reduction incapital gains✓ Assets increased due to changes in forex✓ Maintained a low non-performing ratio✓ Lument: Reduction in real estate loan income led to lower base profits

Segment Profits

Segment Assets・ROA
Six-month Basis

Full-Fiscal Year

(Bn JPY)(Bn JPY)

1,624.3
1,364.1
1,220.1

4.6%
75.2

Details of FY23.3 H1 follow on next page

47.1

50.0
39.4

2.4%

30.0

28.1

2.3%

21.6

9.4
20.3

21.3

H1

22.3

ORIX USA

H2
21.3

H1

H2
22.3

H1

21.3

23.3

ORIX USA

22.3

23.3 H1

Segment ROA (annualized and after-tax)

Copyright © 2022 ORIX Corporation All rights reserved.

32

ORIX USA 1Q vs 2Q✓

Profits higher on exit completed in 2Q

Segment Profits Breakdown（USD Mil）
Capital gains

Business line
23.3 1Q

Private Equity

Credit23.3 2Q-4

6

Base profits
Change

42

35

+46

+28

23.3 1Q-5

43

23.3 2Q-11

56

Factors behind change
Change-6◼

Capital gains: Realized exit◼

Capital gains: Sold several small equity investments taken when past
syndicated loans were originated◼

Base profits: Spread earnings increased as a result of rising interest rates◼

Base profits: BFIM fee income was skewed towards 1Q, leading to QoQ
decline. Lument origination fees held steady at 1Q level.

+14

Real Estate

3

3

±0

35

24

-11

Total*

6

79

+73

72

69

-4

* Figures don’t include HQ expenses associated with managerial accounting

Copyright © 2022 ORIX Corporation All rights reserved.

33

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 $74.3 Bn)
Operates a hybrid strategy, investing own principal capital while providing capital market and asset management
solutions to external investors

Segment profits and assets don’t include HQ expenses associated with managerial accounting

Credit(as of end-September 2022)

Real Estate

Private Equity

Segment Profits(H1): $140 Mn
Segment Assets: $6.360 Bn

Segment Profits(H1): $64 Mn
Segment Assets: $3.505 Bn

Segment Profits(H1): $22 Mn
Segment Assets: $1.039 Bn✓ Provides variety of debt services, using own
principal capital and external capital✓ Products include leveraged loans, structured
finance products, growth capital, CLOs,
syndicate loans, municipal/infrastructure
project financing✓ Loan origination, primarily for US government
mortgage agency loans (multifamily, seniors &healthcare, commercial real estate)✓ LIHTC (low-income housing tax credit)*
syndication✓

Businesses:✓ NXT Capital✓ Growth CapitalBusinesses:✓ Lument✓ Boston Financial Investment Management✓✓

Two companies focused on middle-market firms– one fund investing principal and third-party
capital, one principal-only strategy
Fund: 25 transactions since 2016 (avg. $75-250
Mn deal size)
Principal investment strategy: 50 platform
transactions since 2012 ($10-$20 Mn deal size)

Businesses:✓ ORIX Capital Partners (fund)✓ ORIX Private Equity Solutions (principal
investment strategy)* US federal tax credit program designed to promote supply of affordable housing, a market resilient to economic trends.
Copyright © 2022 ORIX Corporation All rights reserved.

34

ORIX Europe
YoY -12.0 Bn JPY (-42%)

Segment Profits: 16.4 Bn JPY

Segment Assets: 409.5 Bn JPY✓ Fall in stock market resulted in reduced AUM which led to lower profits

YTD +7.6 Bn JPY (+16.5 Bn JPY from forex)✓ Assets increased due to changes in forex✓ Transtrend performance upbeat

Segment Profits

AUM

Segment Assets・ROA

Full-Fiscal Year

Six-month Basis(Bn JPY)(Bn EUR)(Bn JPY)

9.6%

8.5%

44.7

369.5

49.3

6.1%
401.9

409.5

307

295

328

293

233

39.1
28.5
22.2

20.9

16.9

20.3

21.3

22.3
ORIX Europe

H1

H2

21.3

H1

H2

22.3

16.4

H1

23.3

21.3
ORIX Europe

22.3
23.3 H1
Segment ROA (annualized and after-tax)

19.3

20.3

21.3

22.3

Copyright © 2022 ORIX Corporation All rights reserved.

22.9

35

ORIX Europe – About the Business✓

Main Business: Equities, fixed income, renewable energy and other fund management✓

Actively promoting ESG investing, especially through Robeco and Gravis Capital Management

Major Subsidiaries

Head OfficePrimary Business

Established(Acquired)

RobecoRotterdam

Equities, fixed income, andsustainability-focused
asset management

1929（2013）

Boston Partners

BostonValue-focused boutiqueasset management firm

1995
（2013）

Harbor Capital Advisors

ChicagoManager selection model

1983（2013）

Transtrend

Rotterdam

Commodity Trading Advisor

1991（2013）

Gravis CapitalManagement

LondonAlternative asset manager

2008(2021)An ESG pioneer since the mid-1990s, Robeco isrecognized as a global leader in sustainable investing
Robeco Parent AUM（as of 30 June 2022）

178 Bn EUR
ESG-Integrated AUM

171 Bn EUR
Announced support of Net Zero Asset Managers Initiative in
Dec 2020, aims to achieve net zero GHG emissions across all
assets under management by 2050

Copyright © 2022 ORIX Corporation All rights reserved.

36

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, condominium property management, auto fleet assets)
Equity, Fixed Income, Alternative Assets AUM *1

Aircraft fleet management■ ORIX Europe/Robeco

135535,000

22.9

18.3

■ US: Loan origination/servicing■ Domestic J-REITs

DAIKYO unit – Condominium
managed (units)
540,000

100

54 Tn JPY
44 Tn JPY
18.3

19.3

20.3

21.3

22.3

Mega-solar projects managed *2

19.3

20.3

21.3

22.3

22.9

Auto / Fleet maintenance

516 MW

1.42 Mn
1.35 Mn

355 MW

Business
started
18.3

19.3

20.3

21.3

22.3

22.9

18.3

19.3

20.3

21.3

22.3

22.9

18.3

19.3

20.3

21.3

22.3

22.9

*1 End-period forex rates used. *2 Established mega-solar project management firm in June 2018

Copyright © 2022 ORIX Corporation All rights reserved.

37

Asia and Australia
Segment Profits : 24.1 Bn JPY

YoY +4.2 Bn JPY (+21%)

Segment Assets : 1,399.1 Bn JPY✓ New business deals execution increased as COVID-related impacts waned

YTD +93.0 Bn JPY (+99.8 Bn JPY from forex)✓ Assets increased due to changes in forex

from latter half of previous period, contributing to higher profits✓ Robust used car market in Australia, South Korea✓ Sold stake in an affiliate in Southeast Asia, pushed profits higher
Segment Assets・ROA

Segment Profits
Full-Fiscal Year

Six-month Basis(Bn JPY)(Bn JPY)

1,399.1
1,306.1

3.2%

1,084.2

2.7%

51.2
31.2
24.1
19.9

11.0

0.9%

8.9

12.2
3.3

20.3

21.3

H1

22.3

H2

21.3

Asia and Australia

H1

H2

22.3

H1

23.3

21.3
Asia and Australia

22.3

23.3 H1

Segment ROA (annualized and after-tax)

Copyright © 2022 ORIX Corporation All rights reserved.

38

Asia and Australia – About the Business✓

Main Business: Leasing, lending, and investment businesses in Asia and Australia✓

Leasing, loans: Primarily industrial equipment and auto leasing across Asia and Australia.
Investments: PE investments mainly in Greater China and South Korea
Segment Assets by Business / Region

Investments*2
18%

Other
4%

Total Segment Assets
1.4 Tn JPY

Greater
China
13%

Taiwan 4%

India 5%

FY23.3 H1

S. Korea 2%

Other 2%Thailand 4%

S. Korea 22%

Indonesia 6%
Malaysia 6%
China 12%

Leases, Loans
82%*1

Australia
10%

Hong Kong
11%*1 Net Investment in Leases, Installment Loans, Investment in Operating Leases, and other items*2 Investment in Securities, Investment in Affiliates, and other items (Within Investment in Affiliates, equity stakes owned by leasing-focused Group companies have been included in ‘Leases, Loans’, above)
Copyright © 2022 ORIX Corporation All rights reserved.

39

Appendix

Copyright © 2022 ORIX Corporation All rights reserved.

40

ORIX by the Numbers
Strong profitability
Net income

ROE

312.1Bn JPY

9.9%

Enhanced shareholder returns

Leading renewable energy
provider in Japan

High growth
10-year net income CAGR

(FY13.3-FY22.3)

Renewable energy generating
capacity*2

12％

3.5GW

Well-balanced earnings*1

Top-class investment track record
Domestic private equity investment

Base profit

Investment gains

IRR*3

Increased by 10X+

73%

27%

30%

Financial soundness

Global network

DPS (FY11.3-FY22.3)

Asset management business growth
Asset management business

Assets under management*4

Credit rating

Employees

Single A or higher

32,235 28 countries/regions*All figures based on FY22.3 or end-FY22.3 data unless otherwise indicated.

Regions

54 Tn JPY

＊1 Calculated using average for past five years (FY18.3-FY22.3).
＊2 Calculated reflecting ORIX ownership ratio on a per project basis (as of end-Sept 2022).
＊3 Average for 8 exits since 2012, excludes sale of Kobayashi Kako assets at end-March 2022.
＊4 Total AUM for asset management businesses at ORIX Europe, ORIX USA, Real Estate segments (end-Sept 2022).

Copyright © 2022 ORIX Corporation All rights reserved.

41

About ORIX✓

Proven Track Record of Profitability

Excluding founding year, ORIX has been profitable for 57 straight years
Net Income Attributable to ORIX Corporation Shareholders
FY2021.3

Bn JPYCOVID-19 crisis

350
300
250
FY2009.3

FY2002.3
Burst of IT bubble

200
150

Global financial crisis

FY1998.3
Asian currency crisis

FY1993.3

100

Burst of Japan's
bubble economy

50

0
1964

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

Copyright © 2022 ORIX Corporation All rights reserved.

42

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 © 2022 ORIX Corporation All rights reserved.

43

Medium- to Long-term Growth✓✓(From FY22.3 full-year results presentation announced in May 2022)

Operation & Investment and Asset Management positioned as growth drivers, aim to achieve 440.0 Bn JPY in net income by FY25.3
After FY25.3, will sustain growth into FY30.3 supported by new investments in environment and energy, overseas businesses

Net Income: Trends & Breakdown

11.7%(Bn JPY)

9.9%
10. 0%

5,760

Aircraft and ships, Real estate
operations, Concession

ROE
FY25.3440.0 Bn JPY
4,320

5.0 %

FY22.3400

Operation & Investment

312.1 Bn JPY

FY20.3302.7 Bn JPY

300

2,880
200

0.0 %

Asset Management

FY 21.3

192.4 Bn JPY

1,440

-5.0%

100

Financing & Insurance0-10.0%

13.3

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

22.3

23.3

24.3

25.3

26.3

27.3

28.3

29.3

30.3

Copyright © 2022 ORIX Corporation All rights reserved.

31.3
44

Three Portfolio Categories(Breakdown of Financing & Insurance, Asset Management, Operation and Investment)
Three Categories
Three Category and Segment Matrix
Financing & Insurance
Corporate Financial Services andMaintenance Leasing

Asset Management

Auto, rental equipment,
servicing

Corporate financial services

Real Estate

Operation & Investment

Asset management

PE Investment and Concession
Environment and Energy

Real estate investment, DAIKYOReal estate operations

PE investment

Concession

Environment and Energy

Insurance

Life insuranceBanking and Credit

Banking, credit

Segment

Aircraft and Ships

Ships

ORIX USA

Asset management, loans,
fixed-income investment

ORIX Europe

Asset management

Asia and Australia

Leasing, loans

AircraftPE investment

PE investment

Minor COVID-19 impact

Major COVID-19 impact
Copyright © 2022 ORIX Corporation All rights reserved.

45

Breakdown of Investment Gains
Investment Gains*

Major Business Sales(Bn JPY)

Segment
Real Estate

FY18.342.9

FY19.3② 56.5

FY20.3③ 53.6

FY21.316.9

FY22.326.9

ORIX USA

21.6

33.7
⑤

37.6

17.7

45.9

Other

① 27.6

2.3

④ 6.7

20.6

⑥140.8

Total

119.1

92.8

114.2

54.5

189.0

16.4

-0.7

Company①

ORIX Electric Power
Corporation

FY18.3②

ORIX Golf Management

FY19.3③ORIX Living

FY20.3④

RobecoSAM’s ESG Ratings
Division

FY20.3⑤

Houlihan Lokey

⑥

Yayoi

21.4

PE Investment andConcession

0.3

No.

-19.1

Timing of sale

FY18.3, FY19.3, FY20.3
FY22.3*Investment gains figures are net of impairments. Investment gains include operating leases,
gains on sales of subsidiaries and affiliates, gains on investment securities, etc.

Copyright © 2022 ORIX Corporation All rights reserved.

46

Financials Funding Structure / Employed Capital Ratio✓

Diversified funding methods and maintained a high long-term debt ratio
Funding Structure and Long-term Debt Ratio*1
93%

93%

93%

91%

Shareholders’ Equity / Employed Capital Ratio*2

91%

4.5
4.0

7.7
(Tn JPY)

6.8

7.0

7.1

6.4
1.9

1.2

2.2

1.2

1.2

2.3

1.2

Deposits

3.4

3.5

3.6

85%

3.0

2.9

3.0

3.0

19.3

20.3

21.3

1.5

Capital markets

20.3*1 Excluding deposits

21.3

22.3

86%

3.3

3.3

22.3

22.9

2.0
1.5

3.9

1.0
0.5

Long-term debt ratio

0.0
Shareholders' equity

19.3

86%

2.5

Borrowings fromfinancial institutions
3.3

88%

3.5(Tn JPY)
2.3

2.3

88%

Risk capital

Employed capital ratio

22.9*2 Employed capital ratio is the ratio of risk capital to shareholders’ equity. ORIX calculates risk
capital based on historical maximum decrease for all assets.

Copyright © 2022 ORIX Corporation All rights reserved.

47

Financials✓

Funding Structure

Diversified funding. Controlled funding costs while maintaining a high long-term debt ratio

Breakdown of Funding

Trends in Fundings Costs

Foreign currency funding costs

Deposits
29%

FY23.3 H1
7.7 Tn JPY
ABS, CMBS
2%

Borrowings fromfinancial
institutions
51%

3.27%

Yen funding costs

3.28%

2.76%

3.23%
2.45%

2.39%
1.96%

Overseasbonds
9% Domestic
bonds
8%

0.42%

0.40%

0.37%

0.35%

0.34%

0.33%

0.31%

18.3

19.3

20.3

21.3

22.3

22.6

22.9

CP
1%

Copyright © 2022 ORIX Corporation All rights reserved.

48

Financials

D/E Ratio, Credit Ratings, Interest Rate & Forex Sensitivity

Interest Rate & Forex Sensitivity

Credit Ratings

D/E Ratio・ROE

Interest rates

3.8x
3.4x

10.5%

11.5%

11.7% 11.3% 12.1% 11.6%

2.7x

5.1%

11.3

6.2%

7.4%

13.3

9.9%
6.4%

2.2x 2.1x

12.3

10.3%

14.3

ROE

15.3

1.9x

16.3

1.7x

17.3

1.5x 1.6x 1.5x 1.6x 1.5x
18.3

19.3

20.3

D/E Ratio (Excl. deposits)

21.3

22.3

End-Sept 2022◼

Japanese Yen & US Dollar = Negligible

S&P

A- (Stable)◼

Euro = -2 to -3 Bn JPY

Moody’sA3 (Stable)

Fitch

A- (Stable)

R&I

AA- (Stable)

JCR

AA (Stable)*Sensitivity of pre-tax profits assuming a 1% increase in interest rates
lasting for 12 months

Forex
◼

Forex sensitivity: +1.5 Bn JPY*Sensitivity of pre-tax profits assuming 1 JPY depreciation
lasting for 12 months

Copyright © 2022 ORIX Corporation All rights reserved.

49

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, warranties or undertakings,
expressed or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness, or correctness of the information or the opinions
presented or contained in these materials.

◼

These materials contain forward-looking statements that reflect the Company’s intent, belief and current expectations about future events and financial results. Thesestatements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. These forward-looking
statements are not guarantees of future performance. They are based on a number of assumptions about the Company’s operations and are subject to risks, uncertainties
and other factors beyond the Company’s control. Accordingly, actual results may differ materially from these forward-looking statements. Factors that could cause suchdifferences include, but are not limited to, those described under “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the U.S. Securities
and Exchange Commission and under “Business Risk” of the securities report (yukashouken houkokusho) filed with the Director of the Kanto Local Finance Bureau and of
the consolidated financial results filed with the Tokyo Stock Exchange.

◼

Some of the financial information in these materials is unaudited.

◼

The Company believes that it will be considered a “passive foreign investment company” for United States Federal income tax purpose in the year to which these
consolidated financial results relate and for the foreseeable future by reason of the composition of its assets and the nature of its income. A U.S. holder of the shares or
ADSs of the Company is therefore subject to special rules generally intended to eliminate any benefits from the deferral of U.S. Federal income tax that a holder could
derive from investing in a foreign corporation that does not distribute all of its earnings on a current basis. Investors should consult their tax advisors with respect to suchrules, which are summarized in the Company’s annual report.

◼

Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by
the Company or any affiliate thereof.

Copyright © 2022 ORIX Corporation All rights reserved.

50

For the current IR materials and archives ofpast financial data, please access our website.
IR Section
https://www.orix.co.jp/grp/en/ir/
IR Libraryhttps://www.orix.co.jp/grp/en/ir/library/

ORIX Corporation
Investor Relations and Sustainability Department
Tel: +81-3-3435-3121

51

Company Name
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