ORIX Corporation
First Quarter Consolidated Financial Results
For the Three-Month Period Ended June 30, 2021
Hitomaro Yano Executive Officer
Head of Treasury and Accounting Headquarters
August 3, 2021

1

Company Name
(TSE: 8591; NYSE:
IX)

Copyright © 2020 ORIX Corporation All rights reserved.

Executive Summary(1) Net income & ROE
Net income of 65.2 JPY Bn（+30.3% YoY, +29.5% QoQ), annualized ROE 8.6%
Achieved 26.1% of FY22.3 net income forecast (250.0 JPY Bn)(2) Segment profit growth
ORIX Europe, ORIX USA, Real Estate, and Corporate Financial Services & Maintenance Leasing
segments all posted sharp profit growth, realized investment gains
Healthy profit gains offset decline in earnings at three businesses with major COVID-19 impact: Real Estate (Facilities
Operations), Aircraft leasing, Concession(3) Investment pipeline & New execution
Rich pipeline includes renewable energy projects and MICE IR project
Steady progress in execution of previously-announced projects(4) Shareholder returns
No change to plan for full-year dividend of 78 JPY per share (39 JPY for H1)
FY22.3 share repurchase program of 50.0 JPY Bn planned (10.2 JPY Bn in buybacks already executed as of June 30, 2021)
Copyright © 2021 ORIX Corporation All rights reserved.

2

(1) Net Income & ROE✓

65.2 JPY Bn in net income (+30.3% YoY, +29.5% QoQ, 26.1% of FY22.3 forecast of 250.0 JPY Bn)
Annualized ROE at 8.6%✓

Achieved steady recovery in net income since FY21.3 Q2, results exceeded FY20.3 Q4 levels
Net Income* and ROE

Quarterly Net Income and ROE Trends(JPY Bn)
400.0(JPY Bn)

12.1%

11.6%

15.0%

10.3%

10.0%

6.4%

350.0

15.00%

100

5.0%

300.0

FY22.3 Forecast
0.0%
250.0

250.0

12.3%
90

11.4%

9.6%
7.8%

80

8.6%
6.8%

70

5.9%

6.5%

5.00%

60

-5.0%
200.0
150.0

10.00%

6.8%

50

313.1

323.7

100.0

-10.0%

302.7-15.0%

192.4-20.0%

89.9
40

30

69.2

85.2

0.00%

58.4

20

65.2

50.0

43.8

48.2

50.4

-5.00%

10

50.0

65.2

0.0

-25.0%-30.0%

18.3

19.3
Net Income

20.3
21.3
ROE（annualized）-10.00%0

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

22.3Q121.321.3 Q3 21.3 Q4 22.3
20.3 Q1 20.3 Q220.320.3 Q3 20.3 Q4 21.3 Q1 21.3 Q2
Q1
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2

Net Income

ROE (annualized)

Copyright © 2021 ORIX Corporation All rights reserved.

3

(1) Breakdown of Segment Profits
77.2 JPY Bn, up by 23.3% YoY (+14.6 JPY Bn)

FY 22.3 Q1Segment profits

Base Profits

Robust performance in multiple segments (incl. ORIX Europe, ORIX USA, Corporate Financial Services &Maintenance Leasing) offset decline in three businesses most impacted by COVID-19 (Real Estate <Facilities
Operations>, Aircraft leasing, Concession)

Investment
Gains*

29.7 JPY Bn, up by 85.6% YoY (+13.7 JPY Bn)

106.9 JPY Bn
up by 35.8% YoY(+28.2 JPY Bn)

Exited several US private equity investments (incl. RoadSafe), sold Hirakata II Logistics Center

Full-Fiscal Year Segment Profits（JPY Bn）
500.0
400.0

470.1
143.1

433.7

451.4

107.2

140.1

Quarterly Segment Profits（JPY Bn）
120.0

106.9
100.0

300.0

332.3

80.0

87.4

78.7

78.1

16.0

21.6

60.0

85.7
15.2

89.9

29.7

34.6

200.0

327.0

326.5

311.3

100.0

40.0

244.9

56.5

21.3 Q1

21.3 Q221.321.3 Q3

20.0

0.0
18.3

19.3

Base profits

20.3

21.3

0.0

Investment gains*Primary sources of investment gains: gains on sales of rental property, subsidiaries and affiliates, investment securities, etc.
Please see P40 for breakdown of Investment Gains

70.4

62.6

Q1

Q2

Base profits

Q3

77.2
55.3

21.3 Q4Q4

22.3Q122.3
Q1

Investment gains

Copyright © 2021 ORIX Corporation All rights reserved.

4

(2) Segment Profit Growth Healthy Earnings Offset COVID Impact✓ ORIX Europe, ORIX USA, Real Estate, Corporate Financial Services & Maintenance Leasing posted sharp

profit growth, realized investment gains✓ Healthy profit gains offset decline in earnings at three businesses*1 with major COVID impact*1: See p. 39 for details of COVID-impacted segment profit trends

ORIX Europe(Segment Profits)✓ Record AUM at ORIX Europe with focus on ESG investment

Profit Growth Offsets COVID Impact(JPY Bn)
150

ORIX USA125
100✓ Private equity investment exits, solid performance in asset
management businesses incl. Lument*3

16.8

1.5

75

118.0

50

91.5

✓ Sales of logistics center, earnings growth at DAIKYO

77.2

25
0

-11.1

(25)
Q1

Q2

Q3

Q4

20.3
Segments with minor COVID impact

Q1

Real Estate

Q2

Q3
21.3

Q4

Q1
22.3

Three businesses with major COVID impact*2*2: Real estate (facilities operation) segment profits calculated by subtracting investment gains from real estate
investment & operations business unit’s segment profit

Corporate Financial Services & Maintenance Leasing✓ Auto business supported by brisk used car sales, recovery
in rental car operations✓ Rentec earnings continue on uptrend since FY21.3 Q2*3: Lument is an asset management firm focusing primarily on real-estate loan origination

Copyright © 2021 ORIX Corporation All rights reserved.

5

Segment Performance (1) Segment Profits✓

Q1 Profits rose QoQ in seven segments while also growing YoY in six segments（JPY Bn）

Segment profits
106.9（JPY Bn）

21.3 Q1

21.3 Q2

21.3 Q3

21.3 Q4

22.3 Q1

13.3

17.8

19.3

20.3

20.3

±0

+7.0

Profits up on brisk used car sales, recovery at Rentec

1.9

9.2

5.6

9.3

11.0

+1.7

+9.2

Profits up sharply on investment gains from logistics center sale and strong condo
sales at DAIKYOPE Investment andConcession

4.6

-0.3

0.3

-0.7

0.3

+1.0

-4.3

Profits up QoQ on healthy earnings at PE investees, but down YoY owing toconcession business losses

4 Environment and Energy

7.7

5.9

3.5

10.5

4.5

-6.0

-3.2

Absence of valuation gain booked in FY21.3 Q1 led to lower profits YoY, but profits
higher excl. this impact

5 Insurance

18.3

17.1

16.2

4.6

15.5

+10.9

-2.8

Growth in new policies at ORIX Life fueled profit gains despite lower profits atformer Hartford Life

6 Banking and Credit

11.9

13.3

13.2

11.5

12.8

+1.2

+0.9

Solid performance at ORIX Bank led to profit growth (both QoQ, YoY)

7 Aircraft and Ships

7.6

-2.1

-1.2

1.0

-4.8

-5.8

-12.4

Profits down on HNA lease contract-rel. losses booked at Avolon

8 ORIX USA

-0.6

10.5

15.2

15.2

25.2

+10.0

+25.7

Investment gains on PE exit led to sharp rise in segment profits (both QoQ, YoY)

9 ORIX Europe

7.2

9.9

10.0

12.4

13.5

+1.1

+6.3

After bottoming in Mar 2020, AUM recovered to new record high in June 2021

10 Asia and Australia

6.9

-3.1

3.5

5.9

8.8

+2.9

+1.9

Profits up as new leasing business accelerated in China, South Korea

78.7

78.1

85.7

89.9

106.9

+17.0

+28.2

1

20.3

Corporate Financial Services
and Maintenance Leasing

2 Real Estate

11.0

78.7

4.5
13.3

4.6
7.7

1.9

0.3

3

QoQ

YoY

15.5

12.8

18.3

Highlight

25.2
11.9
7.6

13.5

7.2
8.8

6.9
(0.6)

(4.8)

21.3 Q1

22.3 Q1

Total-*Allocation methods for some interest and SGA expenses between segments have changed as of FY22.3 Q1. As a result, we have restated segment profits for past fiscal years

Copyright © 2021 ORIX Corporation All rights reserved.

6

Segment Performance (2) Segment Assets✓✓

Corporate Financial Services continues to prioritize careful selection of deals, assets down YoY
Assets increased in Asia and Australia, reflecting growth in new leasing business in several countries（JPY Bn）

Segment assets

11,341.8

22.3 Q1

11,309.4
1,635.9

872.1
378.7
489.2

864.3
382.0
490.9

1,959.5

1,951.5

2,690.6

2,702.8

601.8

593.6

1,220.1

1,209.1

369.5

368.0

1,084.2

1,111.2

22.3 Q1

Highlight

-40.1

3.4%

Installment loans and leasing balance decreased due to careful deal
selection

2 Real Estate

864.3

-7.7

3.5%

Assets lower owing to sale of logistics facilities

3 PE Investment and Concession

382.0

+3.3

-1.0%

-

4 Environment and Energy

490.9

+1.7

2.5%

-

5 Insurance

1,951.5

-8.0

2.3%

-

6 Banking and Credit

2,702.8

+12.2

1.3%

Segment assets up on growth in real-estate investment loans at ORIX Bank

7 Aircraft and Ships

593.6

-8.1

-3.4%

Aircraft leasing assets decreased owing to depreciation and asset sales;
but ships business assets up vs. end-FY21.3

8 ORIX USA

1,209.1

-10.9

6.6%

Assets fell due to PE exits

9 ORIX Europe

368.0

-1.5

11.0%

-

1,111.2

+26.9

2.4%

Assets increased with acceleration in new leasing business in China, South
Korea

11,309.4

-32.3

2.3%

-

Corporate Financial Services
and Maintenance Leasing

10 Asia and Australia

Total

21.3

ROA*

1,635.9

1

1,676.1

YTD（JPY Bn）*Segment asset ROA is calculated using total post-tax unit profits

Copyright © 2021 ORIX Corporation All rights reserved.

7

(3) Investment Pipeline & New Execution✓ Rich pipeline includes renewable energy projects and MICE-IR project✓ Steady progress in execution of previously-announced projects, issued company’s first green bond targeted
at retail investors
Category

Overview

Elawan deal closed in July 2021, accelerating renewable energy business’ global expansion
Environment &Energy✓ Robust overseas project pipeline secured through Elawan, Greenko✓ New domestic renewable energy projects sourced using PPA model* for mid- to large-size manufacturers✓ Completed construction of dry biogas power generation facility (uses food and paper waste as fuel) in June

Diversified investment pipeline includes MICE-IR project✓ Submitted MICE-IR project proposal to Osaka Prefecture, City Government on July 20

Other areas✓ Participated in consortium investing in SPC and O&M company for Miyagi Prefecture’s water supply,
industrial waterworks, and sewerage concession in May✓ Continue development of logistics facilities centered in the Tokyo metropolitan area
*PPA business model: ORIX leases roof or ground space from clients at their locations and builds solar power generation systems where the power
generated is then supplied to the client
Copyright © 2021 ORIX Corporation All rights reserved.

8

（blank）

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9

Segment Performance

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10

Corporate Financial Services andMaintenance Leasing

Segment Performance (1)YoY +7.0 JPY Bn (+53%)

Segment Profits: 20.3 JPY Bn*As figures less than 0.1 JPY Bn are rounded off, the total ofindividual business unit figures does not necessarily match
segment figures

Segment Assets: 1,635.9 JPY Bn✓ Auto: Profits up sharply YoY on healthy used car market, demand for rental cars

YTD -40.1 JPY Bn (-2%)✓ Continue to strategically reduce exposure to Corporate Financial Services’ lending,recovering from COVID slump

leasing operations given price competition in zero-interest rate environment✓ Rentec: Technology center utilization was impacted by COVID shutdowns in FY21.3 Q1,

but has since normalized. Earnings remain strong

Segment Profits(JPY Bn)

Segment Assets and ROA(JPY Bn)

Full-Year Results

74.7
13.6

2,000

70.7

Quarterly Results

31.3

6.0

21.7

4.0%

1,804.2

20.3
1,500

4.4

13.3

4.0

8.5

9.4

97.3

11.2

5.3

4.3

500

1.2

1.4

1.7

1,635.9

146.4

144.8

5.9

5.3

6.1

21.3

21.3 Q1

21.3 Q2

21.3 Q3

21.3 Q4

Corporate Financial Services

Yayoi

Auto

Rentec

2.4%

2.5%

2.3%

2.3%

3.0%

817.3

1.5

694.2

95.0

94.3

1.0%

2.0%

0.5%

328.7

314.9

297.8

299.7

285.3

1.0%

0.0%
-0.5%
-1.0%

702.6

-1.5%

3.6
22.3 Q1

2.5%
1.5%

706.3

728.5

3.0%
2.0%

2.8%

0.0%
0.0

0
20.3

2.4%

3.4%

740.3

1,000

8.1

1,676.1
2.8%

3.2

1.7
23.3

20.3

19.3

2.1
2.0

6.7

(JPY Bn)

149.3

11.7

17.8
31.2

Yields on Loans

20.3

21.3

Corporate Financial Services
Auto
Segment ROA (annualized and after-tax)

22.3 Q1
Yayoi
Rentec-2.0%
21.3 Q1

21.3 Q2

21.3 Q3

Installment Loans

21.3 Q4

22.3 Q1

Yields on Loans

Yields on loans ＝ finance revenues classified as loan interest ÷ average balance of installment loans

Copyright © 2021 ORIX Corporation All rights reserved.

11

Corporate Financial Services and Maintenance Leasing
Main business: Finance and fee business; Yayoi; leasing and rental of automobiles, electronic measuring instruments and
ICT-related equipment
Corporate Financial Services

Yayoi

Auto

RentecProvide solutions for SMEs,
middle market firms in leasing,financing areas

Enterprise software development,
sales, and support services

Automobile leasing,rental and car sharing

Rental & specialized services forelectronic measuring instruments,
ICT-rel. equipment

Utilizes ORIX’s

Paid maintenance support
contracts:

Vehicles under management:

nationwide network
Fee business-centered model
supports segment earnings

740,000 companies*1

Maintenance support contracts
provide steady revenue flow

Units in inventory:

34,000 types,*6
2.2 million units*4

1,416,000

Comprehensive support programs astrength, supported by broad rangeof products, services

・Financing and equipment leasing

・Sales of accounting software licenses:

・Assist transition to low-carbon energy(No. 1 )・Leased vehicles (No. 1 in industry )・Business succession support

・Share of cloud accounting software:

・Rental cars (No. 2 in industry )・Employee benefits

users (No. 1 )・Car sharing vehicles (No. 3 in industry )*2*3・Maintenance support

Japan’s largest rental equipment
company, offers specialized services
・Electronic measuring instruments, ICT-

*5*5rel. equipment rental*5・Outsourced 3D printing services
・5G adoption support*1 As of end-Sept 2020.
*5 Research by ORIX Auto (as of end-June 2021).
*2 Yayoi product share of total business software market, compiled by ORIX from third-party market surveys. (Oct 1, 2019-June 30, 2020) *6 As of end-March 2021.
*3 According to Cloud Accounting Software Use Survey by MM Research Institute, Apr 2021.
*4 As of end-March 2021.
Copyright © 2021 ORIX Corporation All rights reserved.

12

Segment Performance (2) Real Estate
YoY +9.2 JPY Bn（+495％）

Segment Profits : 11.0 JPY Bn

Segment Assets : 864.3 JPY Bn✓ Profits up sharply on investment gains from logistics facility sale, higher✓

new condominium sales at DAIKYOYTD -7.7 JPY Bn（-1％）

Assets marginally lower on sales of logistics facility, rental
condominiums✓ Facilities operation: Losses shrank as occupancy rates at hotels & inns

improved YoY

Segment Profits

Segment Assets and ROA

AUM

1,000

(JPY Bn)

8.0%(JPY Bn)

821.2

Full-Year Results

800

7.1%

872.1

864.3

217.8

213.0

209.7

81.5

7.0%
6.0%
5.0%

600

21.2

(JPY Bn)

Quarterly Results
4.0%

425.5

538.0

633.8

665.5

3.5%

9.3
60.4

1.9
3.4

2.6

3.5

5.6

5.6

4.3

21.3 Q1

12.1

RE Investment and Facilities Operation

21.3 Q3

654.3

651.4
2.1%

2.0%

659.7

673.9

681.0

684.2

18.3

19.3

20.3

21.3

1.0%
5.3

0
-2.8

21.3 Q2

3.0%
611.5

5.8 200

1.2

-0.7
21.3

11.0

9.2

25.9
22.5

20.3

400

21.3 Q4DAIKYO

0.0%
20.3

22.3 Q1

21.3
22.3 Q1
RE Investment and Facilities Operation
DAIKYO
Segment ROA (annualized and after-tax)

OAM*

ORIA*** 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 © 2021 ORIX Corporation All rights reserved.

13

Real Estate
Main Business：Real estate development, rental and management; facility operations; real estate asset management
Segment Assets（as of Mar 31, 2021）
Primarily DAIKYO
condominiums

Others8%
Investment in
Affiliates
11%
Inventories
11%
Property under
Facility
Operations*2
18%

Unrealized gains on rental
properties*

Segment Asset Trends

Primarily leased
logistics facilities,
office buildings, andretail properties(JPY Bn)(JPY Bn)80
35.0%2500 30.1%

70.1

30.0%
70

2000 1,916.9

25.0%

60

73.7

71.9
60.1

57.0

20.0%

Investment in
Operating
Leases*1
52%

50

1500

15.0%
7.7% 40
10.0%

1000

5.0%
872.1 30
0.0%
20

500

-5.0%

10
-10.0%-15.0%
00
10.3

Primarily hotels& inns15.3
Real Estate Segmement Assets
Ratio to 10 Segment Assets in total

20.3 21.3

17.3

18.3

19.3

20.3

21.3

*Includes rental properties in segments other than the Real Estate segment
Not including property in facility operations*1: Includes net investment in leases and advances for finance lease and operating lease*2: Includes advances for property under facility operations

Copyright © 2021 ORIX Corporation All rights reserved.

14

Segment Performance (3) PE Investment and Concession
YoY -4.3 JPY Bn (-94%)

Segment Profits: 0.3 JPY Bn

YTD +3.3 JPY Bn (+1%)

Segment Assets: 382.0 JPY Bn✓ PE Investment: Production at Kobayashi Kako still halted, but profit✓

Assets up vs. end-FY21.3 on business expansion at PE investees

contributions from most other investees increased✓ Concession: Kansai Airports’ results are reported with a three-month lag so lastyear Q1 results were not substantially impacted by COVID. This led to a YoY decline
for this quarter

Segment Profits(JPY Bn)

Segment Assets and ROA
400

Full-Year Results

44.5(JPY Bn)

322.5
300

12.2%

378.7

382.0

14.0%

50.6

47.3

12.0%
10.0%

60.1

19.6

8.0%

Quarterly Results
200

6.0%
334.7

328.1

24.9

3.8
12.2

4.6
4.6

-0.3

0.3

3.1

3.5

0.0

-8.4

-3.4

-3.2

0.3
-0.7
1.0
-1.7

100

2.0%

3.8

21.3

21.3 Q1

PE Investment

21.3 Q2

Concession

21.3 Q3

21.3 Q4

0.0%

0.0%
-1.0%

-3.5

0

-2.0%
20.3

20.3

4.0%

262.4

22.3 Q1

21.3

22.3 Q1

PE Investment
Concession
Segment ROA (annualized and after-tax)

Copyright © 2021 ORIX Corporation All rights reserved.

15

PE Investment and Concession✓ Currently invested in 17 companies (as of June 30, 2021); 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

Investment span

Small - Mid Cap
Focus

3 - 5 years(EV: 20-30 JPY Bn)(per project)

Total investments
since 201226 companies

or longer

What makes us unique?
ORIX has not only sufficient funding ability but also possesses significant operating
expertise in a variety of industries. While aiming to increase the value of the investee
company, we have flexibility in terms of investment horizon and the investment
structure
Flexibility

ORIX is not a Private Equity Fund; we invest our own funds. We are flexible
both in terms of investment horizon and investment structure

Hands-onWe establish a true partnership with the investee company, often sending
management staff to the investee and utilizing our entire network to help
grow the business

Synergies

We have an extensive domestic sales network in Japan. We are involved in adiverse portfolio of businesses and will look to extract synergies

Focus Areas

We are focused on areas which are expected to grow and have social
significance incl : logistics and rental, IT and information services, healthcare
and dairy farming. In these focus areas, we will also consider owning theinvestee company for a longer period of time and do roll-up transactions forfurther growth, seeking synergies between the investees

Track record

30% IRR
average achieved in
8 exits since 2012

Copyright © 2021 ORIX Corporation All rights reserved.

16

Segment Performance (4) Environment and Energy
YoY -3.2 JPY Bn (-42%)

Segment Profits: 4.5 JPY Bn

Segment Assets: 490.9 JPY Bn✓ Segment profits fell YoY on absence of valuation gains booked in FY21.3

Q1✓ Strong pipeline, track record for PPA model* solar plant installations,✓YTD +1.7 JPY Bn (flat)

Assets flat vs. end-FY21.3, as depreciation of existing power
generation facilities offset asset growth from completion of dry biogas
power plant, other projects

primarily at mid-, large-sized domestic manufacturers and retailers*Power purchase agreement (PPA): ORIX leases roof or ground space from clients at their locations and builds solar power generation systems where the power generated is then supplied to the client.

Segment Profits

Segment Assets and ROA(JPY Bn)

500

Renewable Energy Generating
Capacity Outlook*(JPY Bn)

Full-Year Results*Reflects capacity proportionate to
ORIX equity stake

8GW

4.1%
400

300

Quarterly Results

464.3

27.5

11.1

2.5%

200

7.7

490.9

3GW

21.3

22.3 Q1

21.6

1.8%

100

10.5
5.9

489.2

4.5

3.5

0
20.3

21.3

21.3 Q1

21.3 Q2

Environment and Energy

21.3 Q3

21.3 Q4

22.3 Q1

20.3
Environment and Energy

Segment ROA (annualized and after-tax)

26.3 (Forecast)

Domestic

Copyright © 2021 ORIX Corporation All rights reserved.

Overseas17

Global Renewable Energy Portfolio✓ Total net owned operating capacity of 3 GW* worldwide
Around 2 GW of projects under construction, primarily at Elawan, Greenko
Pipeline assets include Greenko (more than 8 GW), Elawan (more than 9 GW)
Spain & other locations

・Elawan (80% stake)Wind, solar assets
Capacity: 710 MW

India
・Greenko (21.6% stake)Wind, solar, hydro assets
Capacity: 7,080 MW（as of June 30, 2021）

USA & other locations

China

Japan

・Beijing Energy (4.8% stake)Solar, hydro assets
Capacity: 2,830 MW

Solar Capacity: 870 MW*1
Wind, geothermal, biomass
Capacity: 240 MW・Ormat Technologies (19.6% stake)
Geothermal capacity: 1,220 MW
Storage battery capacity: 80 MW
・ORIX Corporation USA (100%)
Solar capacity: 80 MW

Vietnam・BPC (6.1% stake)Hydro, solar assets
Capacity: 1,040 MW*1 Solar business in Japan has cumulatively sold more than 1.0 GW in panels, in addition 870 MW ofowned capacity. Business boasts a strong network of clients committed to renewable energy*3 GW figure at left is net owned operating capacity,
adjusted to reflect ORIX’s ownership stake on a percompany or project (if JV) basis*Capacity figures for each entity are on a gross capacity
basis

Copyright © 2021 ORIX Corporation All rights reserved.

18

Segment Performance (5) Insurance
YoY -2.8 JPY Bn (-15%)

Segment Profits: 15.5 JPY Bn

Segment Assets: 1,951.5 JPY Bn✓ Segment recorded stable profits, as expansion in non-face-to-face channels✓

fueled continuing growth in new policies✓ Segment profits lower YoY on absence of year-earlier reversal of liability

YTD -8.0 JPY Bn (flat)

Assets flat vs. end-FY21.3. Growth in number of policies in force pushedassets higher at ORIX Life, but was offset by reduction in number of policies
at former Hartford Life Insurance

reserve of former Hartford Life Insurance

Segment Assets and ROA

Segment Profits(JPY Bn)

Number of Insurance
Policies in Force(JPY Bn)

Number of ORIX Life Retail Insurance Policies (Millions)

2,000

Full-Year Results

46.0

5.00

56.2

4.80

1,500

7.8

4.40
1,000

52.1

17.1
0.6

4.3

48.3

15.5

16.2

2.3%
1,580.2

1.5

16.5

14.7

21.3

21.3 Q1

Life Insurance

21.3 Q2

21.3 Q3

ex-Hartford Life Insurance

21.3 Q4

21.3

21.6

4.26

2.3% 4.20

4.00

3.40

1.4
3.2
-6.2
20.3

4.39

3.60

16.2

4.6

2.3%

4.82

3.80

500

13.9

1,951.5

1,959.5

4.79

4.53

4.60

Quarterly Results

18.3

4.68

-0.8
22.3 Q1

3.20

0
20.3
Life Insurance

21.3
22.3 Q1
Segment ROA (annualized and after-tax)3.00

19.3

19.9

20.3

20.9

Copyright © 2021 ORIX Corporation All rights reserved.

19Life Insurance✓ Omni-channel strategy utilizing four sales channels - agency, banks and other financial institutions, mail order and Internet sales, andin-person sales by ORIX Life reps
✓ Pioneering Internet / mail-order sales channel first launched in 1997. Industry leader in share of direct channel sales✓ 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)
Segment Profits*

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

FY14.3
47.6

10.2
10.3

17.7

22.7

26.5

30.4

11.3

12.3

13.3

14.3

ORIX Life Insurance

42.3

15.3

4.3

40.2

-2.8
16.3

52.3

17.3

3.6

48.2

18.3

FY21.3

7.8

57.5

-4.2
19.3

52.1

-6.2
20.3

48.3

21.3

Third sector
products
63%

First sector
products
37%

Third sector
products
56%

First sector
products
44%

ex-Hartford Life Insurance*Segment Profits in FY15.3 includes bargain purchase gains throughthe acquisition of ex-Hartford Life Insurance

・First sector products (Death protection, etc.)
・Third sector products (Heath insurance, Cancer insurance, etc.)
Copyright © 2021 ORIX Corporation All rights reserved.

20

Segment Performance (6) Banking and Credit
YoY +0.9 JPY Bn (+7%)

Segment Profits: 12.8 JPY Bn

Segment Assets: 2,702.8 JPY Bn

YTD +12.2 JPY Bn (flat)✓ Banking: Profits held steady on growth in real-estate investment loans✓ Banking: Assets rose on increase in real-estate investment loans✓ Credit: Profits fell YoY due to smaller positive impact from reversals of✓ Credit: Assets up vs. end-FY21.3

provisions for losses vs. FY21.3 Q1Segment Profits(JPY Bn)

Segment Assets and ROA

Gross Margin and Yield*(JPY Bn)

Full-Year Results（as of Mar 31, 2021）

3,000

49.9

2,603.7
40.8

2,500

182.2

2,690.6

2,702.8

177.9

181.1

ORIX Bank（non-consolidated）

20.9

Quarterly Results

13.6

11.9
27.3

29.1

5.6

6.3

13.3

1,500

13.2
11.5

6.4

6.9

2,000

4.4

12.8

2,421.5

4.11,000

2,512.7
1.1%

2,521.7
1.3%

1.3%

4.5

8.9

7.0

8.7

21.3

21.3 Q1 21.3 Q2Banking
Credit21.3 Q3

21.3 Q4

22.3 Q1

1.99%

Funding Yield

0.18%

Gross Margin of
Capital

1.81%*ORIX Bank's financial results disclosure materials (JGAAP)

500

Investment Yield= Interest on investment accounts (mostly interest on
loans)/Average outstanding balance

0

20.3

Investment Yield

20.3
Banking

21.3
Credit22.3 Q1

Segment ROA (annualized and after-tax)

Funding Yield= Interest on interest-bearing liabilities/Average outstandingbalance

Gross Margin of Capital =Investment Yield - Funding Yield

Copyright © 2021 ORIX Corporation All rights reserved.

21

Banking✓ ORIX Bank’s differentiated service menu focused on real-estate investment loans helps it realize a high ROE, ROA
compared to peers✓ Low-cost business model with no branches, ATMs, or settlement services delivers a low expense ratio and a highloan-to-deposit ratio
FY20.3 Loan to Deposit Ratio

FY20.3 Expense Ratio
(％)

(％)

100

100

80

80

60

60

40

36.8%

20

0

0
ORIX Bank

96.7%

40

20

Megabanks
Avg.

RBAJ Avg.

SARB Avg.

*In FY21.3, ORIX Bank’s expense ratio was 37.5%

FY20.3 ROE/ROA*1

ORIX Bank

Megabanks
Avg.

RBAJ Avg.

SARB Avg.

*In FY21.3, ORIX Bank’s loan to deposit ratio was 96.8%

ROE

ROA

ORIX Bank

9.4%

0.8%

Megabanks Avg.

5.9%

0.2%

RBAJ Avg.*2

3.0%

0.1%

SARB Avg.*3

1.8%

0.1%

*1 Japanese Bankers Association. Compiled by ORIX from FY2019
Financial Statements of All Banks report. Expense ratio calculatedby dividing operating expenses by gross business profit*2 Regional Bank Association of Japan average*3 Second Association of Regional Banks average*In FY21.3, ORIX Bank’s ROE was 9.3%, ROA was 0.7%

Copyright © 2021 ORIX Corporation All rights reserved.

22

Segment Performance (7) Aircraft and Ships
YoY -12.4 JPY Bn (-164%)

Segment Profits: -4.8 JPY Bn

Segment Assets: 593.6 JPY Bn✓ Aircraft: Despite aircraft profits being on par YoY, Avolon booked losses

YoY -8.1 JPY Bn (-1%)✓ Aircraft: Segment assets fell owing to depreciation, sale of assets

related to lease contracts with HNA affiliates leading to reduced profits✓ Ships: Assets increased✓ Ships: Profits higher YoY on increase in installment loans

Segment Profits

Segment Assets and ROA(JPY Bn)

800

Aircraft leasing business(JPY Bn)

8.0%
6.7%

Full-Year Results

6.0% Businesshistory

600

44.9

4.0%

17.7

Quarterly Results

400

601.8
585.3

2.0% Business

0.8%

model

593.6

0.0%
200

7.6

27.2

5.4
4.1

1.2

6.3

-2.1
1.3 0.7
-2.7

20.3

21.3

-1.2

1.0

0.9

1.3

-2.1

-0.3

-4.8
1.8

-3.4%
0

-6.7

21.3 Q1 21.3 Q2 21.3 Q3 21.3 Q4 22.3 Q1

Aircraft and Ships (exc. Avolon)

Avolon

-2.0% ORIX
ownership
-4.0%

20.3

21.3
22.3 Q1
Aircraft and Ships
Segment ROA (annualized and after-tax)

Rating（as of June 30, 2021）

ORIX

Avolon43 years
Started with finance leases(ORIX Aviation
Established in 1991)

11 years(Established in 2010)• Mainly trading in secondhand market• Strengths include
arrangement of aircraft
purchases to third parties
and asset management
services
100%

S&P: Top Strong(servicer ranking)• Sizable direct orders toaircraft manufacturers• Strengths in direct leasing of
fleet

30%
(acquired in November 2018)
Fitch : BBBMoody's : Baa3
S&P : BBB-

(Reference) Moody’s raised outlook as follows:・Aircraft leasing industry: Negative to Stable (May 2021)
・Avolon: Baa3 (Negative) to Baa3 (Stable) (June 2021)

Copyright © 2021 ORIX Corporation All rights reserved.

23

Aircraft Leasing Business
GLOBALLY
DIVERSE
（NBV）

ORIX

NARROWBODYWEIGHTING（number of aircraft）

OEM
BREAKDOWN（number of aircraft）

16%

14%
33%

59%
84%
APAC
Americas
EMEA

Narrowbody

AirbusWidebody

BoeingAvolonRemaininglease term
6.4 years

Managed fleet
152

Owned
fleet
520

Committed*
fleet
256

21%
32%

34%

Average age
5.5 years

47%
68%
19%

APAC
Americas
EMEA

79%
Narrowbody
Widebody

Committed
fleet
0

Average age
6.3 years

41%

53%

Owned
fleet
68

Remaininglease term
6.8 years＊Reduced from 400
aircraft at the end of
December 2019
Planned aircraft deliveries
fully placed through theend of September 2022

AirbusBoeing(as of June 30, 2021)
Copyright © 2021 ORIX Corporation All rights reserved.

24

Segment Performance (8) ORIX USA
YoY +25.7 JPY Bn (return to the black)

Segment Profits: 25.2 JPY Bn

YTD -10.9 JPY Bn (-1%)

Segment Assets: 1,209.1 JPY Bn✓ Segment profit up sharply on investment gains from multiple PE exits, including

RoadSafe Traffic Systems, US’s largest provider of traffic control and pavement
marking systems✓ Assets down vs. end-FY21.3 on ongoing caution about credit deals,

sales of multiple PE assets (incl. RoadSafe)✓ Lument* and other asset management businesses also recorded strong

performance*Lument: Asset management firm focusing primarily on real-estate loan origination

Segment Profits

Segment Assets and ROA(JPY Bn)

AUM / AUA

（USD Bn）(JPY Bn)

1,500

Full-Year Results

6.6%
1,200

48.3

1,374.0

51.0

3.2%
1,220.1600

40.3

1,209.1
2.5%

25.2
15.2
10.5

15.2

300

0

20.3

21.3

21.3 Q1 21.3 Q2 21.3 Q3 21.3 Q4 22.3 Q1
ORIX USA

20.3
ORIX USA

21.3

22.3 Q1

Segment ROA (annualized and after-tax)

6.0
7.6

5.6
15.5

7.2
23.4

24.4

10.1

10.7

12.9

7.6

7.0

6.2

3.9
5.9

18.3

19.3

20.3

21.3

RB Capital
BFIM*3

-0.6

78.1

5.3
7.4

900

Quarterly Results

54.8

76.5

72.7
5.3
15.5

43.8
47.2

SPCM*1
NXT

47.4

3.8
0.6
22.3 Q1

Lument*2*1: Signal Peak Capital Management, former Mariner*2: Lument is combined total of Red Capital Group, Lancaster
Pollard, Hunt Real Estate*3: BFIM completed acquisition of Boston Capital assets in Dec 2020

Copyright © 2021 ORIX Corporation All rights reserved.

25

ORIX USA✓ 40+ year track record in US✓ Focused on serving the middle market customer across three verticals: Credit, Private Equity, Real Estate
Aim to achieve further growth in asset management business in all three verticals (total AUM / AUA $72.7 USD Bn)（as of June 30, 2021）
CreditPrivate Equity

Real Estate

Segment assets: $6.4 Bn

Segment assets: $0.94 Bn

Segment assets: $3.4 Bn

NXT Capital$8 Bn in financing to U.S. middle market
companies (primarily senior securedloans)ORIX Capital Partners

Merged three legacy brands into Lument

ORIX Municipals & Infrastructure
Invests in $1 Bn high-yield bond portfolio(municipal, infrastructure bonds)

Track record:
18 deals in 5 years
Conducted first exit in April 2021 (sale ofinvestee RoadSafe Traffic Systems)
Focus on middle market; shift from
infrastructure to IT services, digitalmarketing, factory automation

#1

#6

#1

#1

TOP 5

FHA loanoriginator*

FHA affordable Seniors housing Seniors housing Fannie Mae &housing lender*
lender*
FHA lender
Freddie Mac
since 2010
producer –small loans*Mortgage Bankers Association’s 2020 CRE Originations Rankings

ORIX Private Equity Solutions

Signal Peak Capital Management
Manages $5 Bn in syndicated loans,structured credit (CLOs)

Track record:
47 platform deals in 9 years
Avg. size $10-20 mn

30+ Offices Nationwide~600 Employees Nationwide
160+ Origination Staff Nationwide
Copyright © 2021 ORIX Corporation All rights reserved.

26

Segment Performance (9) ORIX Europe
YoY +6.3 JPY Bn (+87%)

Segment Profits: 13.5 JPY Bn

Segment Assets: 368.0 JPY Bn

YTD -1.5 JPY Bn (flat)✓ Segment assets mostly unchanged vs. end-FY21.3✓ AUM continued strong recovery, hit record level at end-FY22.3 Q1✓ Robeco, a leader in sustainable investing, saw AUM inflows at high-marginfunds, contributing to higher fee income

Segment Profits

Segment Assets and ROA(JPY Bn)（EUR Bn）(JPY Bn)

400.0

Full-Year Results

12.0%
11.0%
10.0%

10.2%
300.0

8.6%

Quarterly Results

200.0
45.1

369.5

39.4

368.0

6.0%

9.9

4.0%

13.5

10.0

295

307

326

21.3

22.3 Q1

233

2.0%
0.0

21.3 Q1 21.3 Q2
ORIX Europe

289

100.0

7.2

21.3

8.0%

317.8

12.4

20.3

AUM

21.3 Q3

21.3 Q4

22.3 Q1

20.3
ORIX Europe

0.0%
21.3
22.3 Q1
Segment ROA (annualized and after-tax)

18.3

19.3

20.3

Copyright © 2021 ORIX Corporation All rights reserved.

27

ORIX Europe✓ Segment business: Equities, fixed income, renewable energy and other fund management✓ Actively promoting ESG investment, especially through Robeco and Gravis Capital Management

Major Subsidiaries

Head OfficePrimary Business

Established(Acquired)

RobecoRotterdam

Stocks, bonds, 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

CTA

1991
（2013）

Gravis CapitalManagement

LondonAlternative asset manager

2008(2021)An ESG pioneer since the mid-1990s, Robeco isrecognized as a leader in sustainable investment
Robeco Parent AUM（as of Mar 31, 2021）

188.0 EU Bn
ESG-Integrated AUM

168.0 EU Bn
Announced support of Net Zero Asset Managers Initiative in
Dec 2020, aims to achieve net zero greenhouse gas emissions
across all assets under management by 2050

Copyright © 2021 ORIX Corporation All rights reserved.

28

ORIX Group Asset Management Business✓ Expanding scope of business from traditional equity and fixed income management (OCE) to alternative asset
management, primarily in U.S., Europe
ORIX Group AUM

OCE (ORIX Corporation Europe)(as of June 30, 2021):

AUM

OCU (ORIX Corporation USA)42.8 JPY Tn

AUM~52 JPY Tn-Robeco Institutional Asset Management-Harbor Capital Advisors-Boston Partners Global Investors-Transtrend-Gravis Capital Management

8.0 JPY Tn-Signal Peak Capital-Lument (Formerly OREC: RED Capital Group, Lancaster
Pollard, Hunt Real Estate Capital)-Boston Financial Investment Management-NXT Capital

Real Estate (Japan)
AUM

1.3 JPY Tn-ORIX Asset Management (OAM)-ORIX Real Investment Advisors (ORIA)

Other assets (Japan)-Corporate fleet vehicles 1.42 mn-Managed aircraft fleet 152-Managed power plants 83 sites / 430 MW**ORIX Renewable Energy Management (OREM) established in 2018

AUM of OCE and OCU were converted at theexchange rate as of June 30, 2021

Copyright © 2021 ORIX Corporation All rights reserved.

29

Segment Performance (10) Asia and Australia
YoY +1.9 JPY Bn (+28%)

Segment Profits: 8.8 JPY Bn

Segment Assets: 1,111.2 JPY Bn✓ Segment profits up as new lease business accelerated in China, South Korea✓ Assets remain on downtrend in Southeast Asia owing to COVID impact,

but segment assets rose overall on new leasing business in China, SouthKorea✓ Australia auto leasing business also contributed to higher segment profit

Segment Profits

Segment Assets and ROA(JPY Bn)YTD +26.9 JPY Bn (+2%)

Segment Assets by Region(JPY Bn)
1,200.0

3.0%

Full-Year Results

16%

2.4% 2.5%

24%

900.0

5%

2.0%

Quarterly Results

600.0
1,010.3

11.8

13.1

8.8

6.9
3.5

21.3

21.3 Q1

21.3 Q2

21.3 Q4

22.3 Q1

21%

12%

0.0%
20.3

21.3 Q3

FY22.3 Q1

6%

0.5%
0.0

20.3

6%

10%

5.9

-3.1

1.5%
1.0%

0.9%

0.9%

300.0

1,111.2

1,084.2

Asia and Australia

21.3

22.3 Q1

Segment ROA (annualized and after-tax)

Korea
Indonesia

China
Malaysia

Hong Kong
TaiwanAustralia
OthersAsia and Australia

Copyright © 2021 ORIX Corporation All rights reserved.

30

Asia and Australia
Main Business: Finance and investment businesses in Asia and Australia

Segment Assets

NET Segment Revenue*

Yields on Financial Assets（FY 21.3）(as of Mar 31, 2021)(JPY Bn)
650.0

4%
Other
18%
Investment in
Affiliates
22%
Investment in
Operating
Leases6.9%

31%
Net Investment
in Leases

8%Servicesincome NET

16%
Other

41%
Financerevenues
NET

25%
Installment Loans

6.9%

6.9%

7.0%

7.1%

7.5%

600.0

7.0%

550.0

6.5%

500.0

6.0%

609.6

450.0

556.3
400.0

626.9

5.5%

555.5

546.0

5.0%

35%
Operating leases

350.0

4.5%

NET

300.0

4.0%

Q1

Q2

Q3

21.3
＊NET Segment Revenue = Segment Revenue - Segment Expenses(Before deduction of Selling, General and administrative expenses)

Q4

Q1

22.3

Installment Loans+Net Investment in Leases
Yields on Financial Assets
Yields on financial assets ＝ Loan interest and net investment in leases÷ average balance ofinstallment loans and net investment in leases

Copyright © 2021 ORIX Corporation All rights reserved.

31

Appendix

Copyright © 2021 ORIX Corporation All rights reserved.

32

About ORIX

Proven Track Record of Profitability✓ ORIX has achieved 56 years of sustained, profitable growth
Net Income Attributable to ORIX Corporation Shareholders

JPY Bn

350
300
250

FY2009.3

FY2002.3

Burst of IT bubble Global financial crisis

200
FY1998.3

150

Asian currency crisis

FY1993.3
Burst of Japan's
bubble economy

100
50

0
1964

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

Copyright © 2021 ORIX Corporation All rights reserved.

33

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 © 2021 ORIX Corporation All rights reserved.

34

About ORIX

Global Network✓ Using its expertise cultivated in Japan, ORIX has expanded its business globally, with operations in 31
countries and regions worldwide

Copyright © 2021 ORIX Corporation All rights reserved.

35

About ORIX

Profits and Assets by Segment✓ Individual businesses demonstrate their strengths to the maximum extent possible to bring about synergies
8%

Corporate Financial Services
and Maintenance Leasing

Finance and fee business; leasing and rental of automobiles, electronic measuring
instruments and ICT-related equipment; Yayoi

Real Estate

Real estate development, rental and management; facility operations; real estate
asset management
PE investment and concession

Environment and Energy

Domestic and overseas renewable energy; electric power retailing; ESCO services;
sales of solar panels and electricity storage system; recycling and waste management

Insurance

Life insuranceBanking and Credit

Banking and consumer financeAircraft and Ships

Aircraft leasing and management; ship-related finance and investment

ORIX USA

Finance, investment and asset management in the Americas

ORIX Europe

Equity and fixed income asset management

Asia and Australia

Finance and investment businesses in Asia and Australia

Segment Profits10%

106.9 JPY Bn

0%
4%

24%

PE Investment and Concession

19%

13%

（FY22.3 Q1)

14%
-5%

12%

FY21.3 EBITDA 712.8 JPY Bn

10%
3%
11%
5%

15%

8%
Segment Assets
11.3 JPY Tn（as of June 30, 2021）

24%
Copyright © 2021 ORIX Corporation All rights reserved.

3%
4%

17%

36

Outlook Beyond FY22.3(Announced at FY21.3 Results Briefing on May 13, 2021)✓ Forecast FY22.3 net income of 250.0 JPY Bn
Aim to quickly return to net income of 300.0 JPY Bn and achieve 400.0 JPY Bn in medium to long term
✓ ROE: Returning to ROE of 11% or higher is management’s top priority(JPY Bn)

Net income: Trends & Breakdown

400.0
5,760

ROE
FY20.3Operation & Investment

300.0
4,320

302.7 JPY Bn

FY22.35.0%

250.0 JPY Bn(Businesses w/major COVID-19 impact)

FY21.3

200.0
2,880

192.4 JPY Bn

Operation & Investment(Businesses w/minor COVID-19 impact)

-5.0%

100.0
1,440

Asset management & Insurance

Financing

0
13.3

14.3

15.3

16.3

17.3

18.3

-15.0%

19.3

20.3

21.3

22.3

23.3

24.3

25.3

26.3

*Please see page 38 for a breakdown of each category

Copyright © 2021 ORIX Corporation All rights reserved.

37

Three Portfolio Categories (Breakdown of Financing, Asset management and Insurance,
Operation and Investment categories on P37)
Three Categories
Three Category and Segment Matrix
Financing
Corporate Financial Services andMaintenance Leasing

Asset management &Insurance

Auto, rental equipment,
servicing, Yayoi

Corporate Financial Services

Real Estates

Operation & Investments

Asset management

PE Investment and Concession
Environment and Energy

Real estate investment, DAIKYOReal estate operation

PE investment

Concession

Environment and Energy

Insurance

Life insurance

Segment
Banking and Credit

Banking, Credit

Aircraft and Ships

Ships

OCU

Asset management, loans,
fixed-income investment

OCE

Asset management

Asia and Australia

Leasing, loans

AircraftPE investment

PE investment

Minor COVID-19 impact

Major COVID-19 impact
Copyright © 2021 ORIX Corporation All rights reserved.

38

Segment Profits of Real Estate (Facilities Operation), Aircraft Leasing, Concession✓ Real-estate (facilities operations), aircraft leasing, concession businesses continued to see COVID impact(JPY Bn)

Segment profit
FY20.3Q1

YoY Impact

FY21.3

Q1

Q2

Q3

Q4

FY22.3

vs. FY20.3

Q1

Q1

Vs. FY21.3

Q1
（億円）

Real estate(facilities operations)*

3.3

-6.1

-2.5

-1.5

-4.9

-2.7

-6.0

+3.3

Aircraft leasing

10.3

7.6

-2.1

-1.2

1.0

-4.8

-15.1

-12.4

Concession

3.2

0

-3.4

-3.2

-1.7

-3.5

-6.8

-3.5

Total

16.8

1.5

-8.0

-5.9

-5.6

-11.1

-27.9

-12.6

*Real estate (facilities operation) segment profits calculated by subtracting investment gains from real estate investment & operations business unit’s segment profit

FY22.3 Q1✓ Real estate (facilities operations): Hotel & inn occupancy improving YoY, but has not yet returned to pre-COVID levels owing to multiple states of
emergency declared in Japan✓ Aircraft leasing: On path to recovery as shown by upgrades to credit rating agency outlook, but profits down YoY owing to HNA-related lease
contract losses✓ Concession: Kansai Airports’ results are reported with a three-month lag so last year Q1 results were not substantially impacted by COVID. This led
to a YoY decline for this quarter(Figures above are segment profit trends. FY21.3 presentation materials disclosed gap between expected and actual segment profit for each business)
Copyright © 2021 ORIX Corporation All rights reserved.

39

Breakdown of Investment Gains✓ Investment gains typically realized in a variety of segments (mainly Real Estate, Private Equity, and ORIX USA)
✓ Portfolio asset rotation also drives investment gains, e.g. sales of ORIX Golf, ORIX Living
Investment gains*

Major Business Sales(JPY Bn)

Business

FY18.3

FY19.3

FY20.3

FY21.3No.

Company

Timing of sale①

ORIX Electric Power
Corporation

FY18.3

Real Estate

47.2② 58.2③ 54.7

18.4

PE Investment andConcession

27.2

0.8

18.7

1.4

②

ORIX Golf Management

FY19.3

ORIX USA

24.2

37.6
⑤

39.5

28.9

③

ORIX Living

FY20.3

Others

① 44.5

10.6④ 27.238.7④

RobecoSAM’s ESG Ratings
Division

FY20.3

Total

143.1

107.2

140.1

87.4

⑤

Houlihan Lokey

FY18.3, FY19.3, FY20.3*Investment gains: Gains on sales of rental property, subsidiaries and affiliates, investment securities, etc.

Copyright © 2021 ORIX Corporation All rights reserved.

40

Financials (1) Funding Structure / Employed Capital Ratio✓

Funding structure: Diversified funding methods and maintained a high ratio of long-term debt✓

Employed Capital Ratio: Illustrates the ratio of capital employed to ORIX shareholders’ equity
Continue to pursue growth while controlling risk and return
Funding Structure andTrend in Long-term Debt Ratio*(JPY Tn)

Shareholder’s Equity /Employed Capital Ratio（JPY Bn）*Excluding deposits

8

100%

3,000.080%2,500.0

100%

7
6
5

60%

4

88%
85%

88%

88%

2,000.080%

1,500.0
2,682.4

40%

3

85%

2,897.1

2,993.6

3,028.5

3,047.5

1,000.0

60%

2
20%
1
0

0%

18.3
19.3
20.3
Borrowings from Financial Institutions
Capital markets（Short-Term）
Long-term Debt Ratio（right axis）

21.3
21.6
Capital markets（Long-Term）
Deposits

500.0

0.0

40%
18.3

19.3
20.3
Shareholders’ Equity

21.3
21.6
Employed Capital Ratio

Copyright © 2021 ORIX Corporation All rights reserved.

41

Financials (2) Liquidity / Credit Ratings✓ Continue to maintain high liquidity✓ S&P, Moody’s, Fitch all reaffirmed A- ratings. R&I is AA✓ Ratings may change depending on timing of investments or asset sales, but we will maintain financial

soundness commensurate with an ‘A’ rating over the medium to long term
Credit Ratings

Liquidity*・D/E Ratio
Liquidity (JPY Bn)

D/E Ratio (times)

1,500（as of June 30, 2021）

3.0

Credit Ratings
1,200

1,080.3

900

1.6

S&P

A-（Negative）

600

Moody’sA3（Negative）

300

Fitch

A-（Negative）

R&I

AA-（Stable）

1.5

0

0.0

18.3

19.3

20.3

Cash and Cash Equivalents (Left axis)

21.3

21.6

Available Commitment Lines (Left axis)

D/Equity Ratio (Excluding Deposits) (Right axis)*Excluding ORIX Bank, ORIX Life Insurance

Copyright © 2021 ORIX Corporation All rights reserved.

42

Financials (3) Funding Structure✓ Diversified funding. Controlled costs while maintaining a high long-term debt ratio
Breakdown of Funding

Trend in Funding Costs andLong-term Debt Ratio**Excluding deposits

Deposits
33%
As of Jun 30, 2021
ABS, CMBS
2%
Overseas
Bonds Domestic
7%
Bonds
8%

CP
1%

Borrowings
from Financial
Institutions
49%

5.00%

100%

4.00%

80%

3.00%

60%

2.00%

40%

1.00%

20%

0.00%

0%
18.3

19.3

20.3

21.3

21.6

Funding Cost（left axis:JPY）
Funding Cost（left axis:Foreign Currency）
Long-term Debt Ratio（right axis）
Copyright © 2021 ORIX Corporation All rights reserved.

43

Shareholder Return✓ Full-year dividend per share: FY22.3 78 JPY (H1 dividend of 39 JPY)
✓ Buyback program: FY22.3 50 JPY Bn planned (10.2 JPY Bn executed as of June 30, 2021)

Dividend per Share and Payout Ratio
Interim Dividend

Year-End Dividend

Share Buyback and Total Return Ratio（JPY）

Payout Ratio

Total dividend

Buyback (actual)

Buyback (forecast)

Total return ratio

78%

160.0

57%*

47%
100.0

30%

90.0
80.0
70.0

25%

50%

27%
30%

50.0

39
29.25

46

41

43

39

Not updated yet

10%

29%

30%

45.7

60%

54.3

50.0

40%
20%

39.1

100.0
80.0

23

27

30

35

35

39

0.0

17.3

18.3

19.3

20.3

21.3

-20%

60.0
40.0

20.0

10.9

-10%

30.0

10.0

120.0

40%

80%

0%

60.0

40.0

32%

140.0

50%

（JPY Bn）

22.3(Forecast)

68.3

84.6

97.4

96.4

-40%

96.1

-60%

-30%

20.0

-80%

-50%

0.0

-100%

17.3

18.3

19.3

20.3

21.3

22.3
(Forecast)*Total shareholder return ratio of appx. 57% assuming net profit of 250 JPY Bn

Copyright © 2021 ORIX Corporation All rights reserved.

44

ORIX’s ESG Policies: Environment (Announced at FY21.3 Results Briefing on May 13, 2021)✓ Currently developing Group-wide CO2 reduction targets, with planned announcement by autumn 2021
✓ Accelerating global expansion of renewable energy business, sustainable real-estate development efforts

CO2 Emissions

140
120
100
80
60
40
20
0

ORIX Group
Total: 1.3 MT (appx.)Japantarget‘Zero’
2020

2050

Emissions primarily from Environment& Energy segment. Currently
developing reduction targets

Specific Reduction Measures
Environment & Energy

Real Estate

CO2 Reduction Contributions

Cutting CO2 emissions throughfacility upgrades at owned
properties

3.0 MT scale

×(FY20.3, incl. equity method affiliates)

Development projects with afocus on sustainability• Accelerating global expansionof renewable energy business• Continue to provide value inrecycling & waste
management fields• Promote third-party
certification of buildings, incl.
CASBEE®

Copyright © 2021 ORIX Corporation All rights reserved.

45

ORIX’s ESG Policies: Social(Announced at FY21.3 Results Briefing on May 13, 2021)✓ Recognize promotion of diversity and inclusion to be a source of business growth✓ ORIX can play a major role in delivering value to society

Ratio of female managers

Ratio of mid-career hires

Delivering value to society(As of Mar 31, 2021)

26.2%

ORIX
オリックス
GROUP

Revitalizationof regional hotsprings resorts

メガバンクA
Six

domestic
peers

Business
succession
support

メガバンクB

66%

商社A
Megabanks
商社B
Tradingcompanies
不動産A
Real-estatedevelopers
不動産B
0%

Car sharing,telematics(Compiledby ORIX)
10%ORIX Bank estateplanning products(incl. donations to
NPOs, local
governments)

etc.

(FY20.3 ORIX Group 10 Domestic Firms)

20%

First mover in promoting women’s advancement.
Selected as constituent in MSCI Japan Empowering
Women Index (WIN). Continue to strengthen career
support measures

Mid-career hires comprise 60-70% of new hires,
helping ORIX secure diverse human resources tosupport evolution in business portfolio

By building relationships with clients, ORIX
contributes to revitalization of regional
economies and SMEs

Copyright © 2021 ORIX Corporation All rights reserved.

46

ORIX’s ESG Policies: Governance✓ ORIX’s Outside Directors possess a wealth of specialized skills and diverse experience, with multiple Directors having
management experience at other corporations✓ From FY22.3, considering specific plans on how to link ESG metrics to Director compensation
Board Composition

Committee Composition –% of Outside Directors

Compensation System for
Directors and Executive Officers

Outside Directors Internal Directors
(6)
(6)
50%

Female(2)50%

NonJapanese
(1)

3
2

100%

100%

Nominating
Committee

Compensation
Committee(As of Mar 31, 2021)

Outside Directors come from a variety ofdiverse professional backgrounds,
disclosure using skill matrix began in
FY22.31

5

100%

Ratio of Female Directors: 17%

1

1

20.3
Fixed

Audit Committee(From June 2021)

All three Committees comprised entirelyof Outside Directors, as part of efforts tocontinually improve Board execution

Performance-based

21.3
Share component(Please see US SEC Filings and Integrated Report for details)

Increased ratio of performance-based andshare component of compensation toachieve stronger alignment withshareholders

Copyright © 2021 ORIX Corporation All rights reserved.

47

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.

◼

The contents of the "Partial Amendments to Consolidated Financial Results April 1, 2021 - June 30, 2021" announced on August 5, 2021 have been reflected in thesematerials.

Copyright © 2021 ORIX Corporation All rights reserved.

48

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
orix_corpcomm@orix.jp

49Company Name
Copyright © 2020 ORIX Corporation All rights reserved.