ORIX Corporation
First Quarter Consolidated Financial Results
For the Three-Month Period Ended June 30, 2020
Hitomaro Yano Executive Officer
Head of Treasury and Accounting Headquarters
August 4, 2020

(TSE: 8591; NYSE: IX)
1

Company Name
Copyright © 2020 ORIX Corporation All rights reserved.

Executive Summary（1） Overview
50.0 JPY Bn in net income（- 27.7% YoY）, annualized ROE 6.8%
Base profits are stable except for businesses affected by COVID-19, which were announced at the end of FY20.3
Interim dividend forecast of 35 yen and payout ratio of 50% also remains unchanged（2） Segment Performance
Enhanced disclosure by expanding segments from 6 to 10. Overseas business has been split into 4 segments
Our diverse portfolio has enabled ORIX to be resilient（3） Financial Soundness
Maintain A credit rating or higher / secured high liquidity
S&P reconfirmed A- rating in July while Moody’s and Fitch both maintained A-. R&I is AAExcluding bank and life insurance, liquidity is at 1.1 JPY Tn and D/E ratio at 1.6 times
Issued straight bonds with total 70 JPY Bn in June, including 3-year bonds at 3bp（4） Investment Pipelines
Rich investment pipeline both in Japan and overseas

Copyright © 2020 ORIX Corporation All rights reserved.

2

（1）Overview Net Income / ROE✓ 50.0 JPY Bn in net income, down by 27.7% YoY. Annualized ROE at 6.8%
✓ 75.4 JPY Bn in segment profits, down by 29.0% YoY
Net Income* and ROE

Reference: ROE in the past five years(JPY Bn)
400.0

11.7%

11.3%

12.1%

11.6%

15.0%

40 0. 0

10.3%

350.0

35 0. 0300.0

30 0. 0

100
, 000

9.6%
10.0%

6.8%

90,00010.0%

80,00070,000250.0

25 0. 0200.0

20 0. 0

150.0

9.6%
14.4%

13.2% 12.5% 14.3% 13.7% 11.9% 11.5%

7.8%

9.6%

11.4%

6.8%

10.00%

11.1%

9.1%

11.9%

8.5%

10.9% 12.3% 12.3%

7.8%

60,000

260.2

273.2

313.1

323.7

50,000-10.0%

302.7-10.0%

40,00015 0. 0-10.00%30,000100.0

10 0. 0

50.0

50 .0

20,000

69.2

0.0

0. 0

16.3

17.3

18.3
Net Income

19.3

20.3

-30.0%
20.3 Q1

10,000

50.0

ROE fluctuates quarterly-30.0%
021.3 Q1

ROE (annualized)-30.00%

16.3
17.3
18.3
19.3
20.3
21.3
16.3 16.3
16.3 16.3 17.3 17.3
17.3 17.3 18.3 18.3
18.3 18.3 19.3 19.3
19.3 19.3 20.3 20.3
20.3 20.3 21.3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Net Income

ROE (annualized)*Net Income refers to Net Income Attributable to ORIX Corporation Shareholders
Copyright © 2020 ORIX Corporation All rights reserved.

3

（1）Overview Breakdown of Segment Profits
FY 21.3 Q1Segment Profits

60.5 JPY Bn down by 23％ (-18.5 JPY Bn)
Base Profits

75.4 JPY Bn
down by 29.0% YoY(-30.8 JPY Bn)（JPY Bn）

Investment Gains*

Profits decreased in Real Estate (Facilities Operation), Concession, Aircraft
Leasing, Auto, and ORIX USA due to the impact of COVID-19
Life insurance, banking, and credit profits were firm on the other hand

15.0 JPY Bn down by 45％ (-12.2 JPY Bn)
Gain on sales of real estate remained unchanged while PE investment and ORIX
USA decreased from the previous fiscal year

Segment Profits*Major investment gains: gains on sales of rental property, gains on sales of subsidiaries and affiliates, gains on sales of investment securities, etc.
Copyright © 2020 ORIX Corporation All rights reserved.

4

（1）Overview The impact of the COVID-19 Outbreak in Q1✓✓

Profits declined primarily in Real Estate, Aircraft Leasing, Concession and ORIX USA
Profits in Life Insurance and other businesses were solid
Item

BackgroundImpact Amount① Real Estate (Facilities Operation)

Occupancy rate declined / temporally closure of various
operating facilities such as hotels and inns

- 6 JPY Bn② Aircraft Leasing

Decrease in gain on sales of aircraft, partial impairment loss

- 5 JPY Bn③ Concession

Significant decrease in number of passengers (Jan-Mar results
accounted with 3-months lag)- 4 JPY Bn④ Corporate Financial Services andMaintenance Leasing

Decrease in rental car sales and gains on sales due to decline
in used car prices, etc.

- 5 JPY Bn⑤ ORIX USA

Impact of provision for credit losses and impairment loss

- 9 JPY Bn⑥ Other (Life Insurance, etc.)

Reversal of liability reserve of Former Hartford Life Insurance+5 JPY Bn―

About -24 JPY Bn

Total* Above figures are based on segment profits

Copyright © 2020 ORIX Corporation All rights reserved.

5

（2）Segment Performance

Change in Segments

6 segments

10 segments

Corporate
Financial
Services
Maintenance
Leasing

Real Estate

16 units
Domestic Sales

1
Yayoi
Auto

Corporate Financial Services

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

Yayoi
Auto

RentecRE Investment and Facilities Operation

3

PE Investment andConcession

4

Environment andEnergyEnvironment and Energy

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

5

Insurance

Life InsuranceLife insurance

6

Banking and Credit

7

Aircraft and Ships

Aircraft and Ships

Aircraft leasing and management; ship-related
finance and investment

Aircraft and Ships

8

ORIX USA

ORIX USA

Finance, investment and asset management in
the Americas

OCU (ORIX Corporation USA)

9ORIX Europe

ORIX Europe

Equity and fixed income asset management

Asia and Australia

Finance and investment businesses in Asia andAustralia

RentecRE investment and Facilities
Operation

Investment and Operation
Concession
Environment and Energy

Banking

DAIKYOPE Investment

Private equity investment and concession

Concession

Banking

Banking and consumer finance

CreditCreditOverseas
Business

Real estate development, rental andmanagement; facility operations; real estate
asset management

Real Estate

Life Insurance

RetailMain Business

2

DAIKYO

Investment
andOperation

Corporate Financial
Services andMaintenance Leasing

16 units

OCE (ORIX Corporation Europe)Asia, Australia and other

10 Asia and Australia

Copyright © 2020 ORIX Corporation All rights reserved.

6

（2）Segment Performance Segment Profits(JPY Bn)

Segment
Profits

Segment Profits（JPY Bn）

106.2
15.5
5.5
10.3
13.2

9.2
10.6
15.8

75.4
3.7

10.2
4.5 1.5
8.1

14.0
20.3 Q1

21.3 Q1

Highlight

1

Corporate Financial Services
and Maintenance Leasing

10.2

-5.3

Down due to decreasing demand for rental car in Auto and price decline in used
car market

2

Real Estate

1.5

-4.0

Decreased significantly due to the temporary closure of all accommodation
facilities by the end of May

3

PE Investment andConcession

4.5

-5.8

PE investment remains solid
Concession declined due to a decrease in the number of passengers

4

Environment and Energy

8.1

4.4

Solid solar power business and accounting for acquisition of wind power business
contributed to profit increase

5

Insurance

18.0

4.8

Non-face-to-face solicitations such as increasing mail order sales made positive
contribution. Reversal of liability reserve of Former Hartford Life also positive

6

Banking and Credit

11.5

2.3

Profits remains steady due to accumulation of high-quality assets
Credit profits increased

7

Aircraft and Ships

7.3

-3.3

Profits of ORIX aircraft-related business were down due to decline in the numberof aircraft in previous FY. Profits at Avolon increased due to one-time profit

8

ORIX USA

0.2

-15.5

A large investment gain recorded in previous FY. Finance revenue and services
income remains solid but credit cost increase negative

9

ORIX Europe

6.7

-1.8

Lower AUM at March year-end hurt profits
However, current market condition is contributing to recovery

10 Asia and Australia

7.4

-6.6

Investment gains recorded in previous FY and increase in provision for credit
losses contributed negatively

75.4

-30.8

18.0
11.5
7.3 0.2
6.7
7.4

8.6

YoY

Total

ー

Copyright © 2020 ORIX Corporation All rights reserved.

7

（2）Segment Performance

Segment Assets(JPY Bn)
Segment
AssetsSegment Assets（JPY Bn）

1

Corporate Financial Services
and Maintenance Leasing

YTD

Highlight

1,743.9-45.8

Focused selection resulting in gradual reduction of financial assets

816.5

-4.7

ー

10,883.5

10,906.7

2 Real Estate

1,789.7

1,743.9

3

PE Investment andConcession

332.4

9.9

ー

821.2
322.5
478.8

816.5
332.4
482.8

4 Environment and Energy

482.8

4.0

ー

5 Insurance

1,664.0

83.8

Investment securities increased

1,580.2

1,664.0
6 Banking and Credit

2,629.5

25.7

Banking increased while Credit decreased in installment loans

7 Aircraft and Ships

586.1

0.8

Aircraft business assets flat due to reduce number of transactions.
FX impact -5.6

8 ORIX USA

1,316.8-57.2

9 ORIX Europe

326.7

8.9

FX impact +4.1

1,008.0-2.3

Flat due to reduction of new lending. FX impact +22.3

10,906.7

23.1

2,603.7

2,629.5

585.3

586.1

1,374.0

1,316.8317.8
1,010.3

326.7
1,008.0

20.3

21.3 Q1

10 Asia and Australia

Total

Installment loans decreased. FX impact -13.7ー

Copyright © 2020 ORIX Corporation All rights reserved.

8

（3）Financial Soundness

Liquidity / Credit Ratings✓ Liquidity: Excluding bank and life insurance, liquidity is at 1.1 JPY Tn and D/E ratio at 1.6 times✓ Credit Ratings: S&P reconfirmed A- rating in July while Moody’s and Fitch both maintained A-. R&I is AA-

Credit Ratings

Liquidity・D/E Ratio(JPY Bn)（times）

1,200

3.0

1,053.0

Credit Ratings

900

1.6
600

1.5

300

0

0.0

16.3

17.3

18.3

19.3

20.3

20.6

（as of June 30, 2020）

S&P

A-（Negative）

Moody’sA3（Negative）

Fitch

A-（Negative）

R&I

AA-（Stable）

Available Commitment Lines (Lef t axis)
Cash and C ash Equivalents (Lef t axis)
Debt-to-Equity Ratio (Excluding Deposits)(Right axis)

Copyright © 2020 ORIX Corporation All rights reserved.

9

（3）Financial Soundness

Funding Structure / Employed Capital Ratio✓

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

Employed Capital Ratio: The ratio shows the usage percentage of ORIX shareholders’ equity
Continue to pursue growth while controlling risk and return
Breakdown of Funding and
Trend in Long-term Debt Ratio*

Shareholder’s Equity /Employed Capital Ratio*Excluding deposits(JPY Tn)(JPY Bn)
3,000.0

8

100%

100%

88%

2,500.0780%

62,000.0

5

85%

85%

85%

87%

78%

80%

60%

1,500.0

4
40%

3
2

20%

500.0

0%

0.0

1
0
16.3

17.3

18.3

Borrowings from Financial Institutions
Capital markets（CP）
Long-term Debt Ratio（right axis）

19.3

20.3

20.6

Capital markets（Long-Term）
Deposits

1,000.0

2,310.4

2,507.7

2,682.4

2,897.1

2,993.6

2,935.2
60%

40%
16.3

17.3
18.3
Shareholders’ Equity

19.3
20.3
20.6
Employed Capital Ratio

Copyright © 2020 ORIX Corporation All rights reserved.

10

（4）Investment Pipelines✓

Securing pipelines steadily even during the outbreak of COVID-19✓

Select projects carefully that meet the investment criteria, with aim to close several deals within FY21.3
Investment Details

Pipeline

Environment and Energy • Renewable energy business companies in Japan and overseas

300 JPY Bn

Asset Management• Roll-up of existing investments (asset management companies)

200 JPY Bn

PE Investment• Domestic: healthcare industry、roll-up of existing investments• Overseas: focus on USA and Asia

250 JPY Bn

Real Estate• Additional investment in existing projects such as hotels andcomplex facilities• Increase value from a long-term perspective

250 JPY Bn

MICE-IR• Promote winning Osaka project650 JPY Bn

Others• New investments

350 JPY Bn
Total 2.0 JPY Tn
Copyright © 2020 ORIX Corporation All rights reserved.

11Summary

FY21.3 Q1 net income was 50.0 JPY Bn (-27.7% YoY), Annualized ROE 6.8%

Expanded segments from 6 to 10, with a focus on enhancing overseas disclosure

Rich investment pipeline both in Japan and overseas
Maintain A credit rating or higher / secured high liquidity
Copyright © 2020 ORIX Corporation All rights reserved.

12

Segment Performance

Copyright © 2020 ORIX Corporation All rights reserved.

13

(blank)

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14

Segment Performance

Corporate Financial Services and（1） Maintenance Leasing

YoY -5.3 JPY Bn (-34％)

Segment Profits: 10.2 JPY Bn*As the figures less than 0.1 JPY Bn are rounded off, the totalof individual business unit figures does not necessarily matchthe segment figures

Segment Assets: 1,743.9 JPY Bn✓ Corporate Financial Services: bargain purchase posted in FY 20.3

YTD -45.8 JPY Bn (-3％)✓ Focused selection resulting in gradual reduction of financial assets✓ Auto: decreasing demand for rental car and decline in used car market(Currently, there are signs of a recovery from personal demand and the used car market)✓ Rentec: despite increasing demand, profits declined due to restrained utilization oftechnology centers

Segment Profits

Segment Assets and ROA(JPY Bn)
80

Yields on loans(JPY Bn)
2,000

12.4
60

4.0%
128.6

3.0%

1,000

26.1

99.1

6.3
500

2.6

28.9
18.4
0

2.6%

2.4%

3.0%

2.5%

1.5%

2.0%
1.6%

97.3

96.7

1.0%

1.0%

361.8

367.8

374.6

0.5%

343.6

328.7

0.0%

-0.5%

6.7

20

2.3%

727.8

740.3

40

2.3%

2.0%

2.4%

745.2

30.7

2.3%

147.0

2.9%

1,500

11.8

149.3

(JPY Bn)

6.3
4.6

1.9

19.3
20.3
20.3 Q1
Corporate Financial Services
Yayoi

1.5
3.9
3.0

869.0

-1.0%

802.8

772.3

0.0%

-1.5%

0.0

1.7

21.3 Q1
Auto
Rentec

0

-2.0%

-1.0%
19.3

20.3

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

21.3 Q1

20.3 Q1

20.3 Q2

20.3 Q3

Installment Loans

20.3 Q4

21.3 Q1

Yields on Loans

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

Copyright © 2020 ORIX Corporation All rights reserved.

15

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

Segment Assets（as of March 31, 2020）

NET* Segment Revenue（FY 20.3）

Nationwide network ofCorporate Financial Services

Other
3%
11%
Other

32%
Investment in
Operating
Leases36%
Net
Investment in
the Leases

21%
Installment
Loans

70
footprints
Approx.

30%
Operating
Leases34%
Services income

1,500
Sales reps

NET

NET

33%
Financerevenues
NET＊NET Segment Revenue = Segment Revenue - Segment Expenses(Before deduction of Selling, General and administrative expenses)

Copyright © 2020 ORIX Corporation All rights reserved.

16

Segment Performance（2） Real Estate
Segment Profits: 1.5 JPY Bn

YoY -4.0 JPY Bn (-73％)

Segment Assets: 816.5 JPY Bn✓ Investment and operation: profits decreased due to the impact of the temporary

YTD -4.7 JPY Bn (-1%)✓ Assets remained flat

closure of all accommodation facilities by the end of May(From June, accommodation facilities reopened with ceiling occupancy rates)✓ AUM in Real Estate Asset Management increased steadily✓ DAIKYO: profits up with an increase in the number of condominiums sales

Segment Profits

Segment Assets and ROA(JPY Bn)
1,000(JPY Bn)

20.0%

800

100

80

209.7

213.4

204.8

19.3

600

538.0

633.8

393.1

425.5

559.7

639.5

659.7

673.9

681.0

16.3

17.3

18.3

19.3

20.3

392.3

21.2

10.0%

60

8.0%

400

7.0%
40

AUM

(JPY Bn)

554.7

74.5
59.0

603.1

611.5

200

20

0
19.3

20.3

7.5
-2.0
20.3 Q1

2.6-1.1
21.3 Q1

0.5%

0
19.3

20.3

RE Investment and Facilities Operation

RE Investment and Facilities Operation

DAIKYO

Segment ROA (annualized and after-tax)

21.3 Q1
DAIKYO

0.0%

OAM*

ORIA*** ORIX Asset Management Corporation（J-REIT）
OAM’s figures are at February** ORIX Real Estate Investment Advisors Corporation（Private Real Estate Fund）

Copyright © 2020 ORIX Corporation All rights reserved.

17

Real Estate
Main Business：Real estate development, rental and management; facility operations; real estate asset management

Segment Assets（as of March 31, 2020）

Unrealized gains on rental
properties*

Segment Assets Transition(JPY Bn)(JPY Bn)90
35.0%2500 30.1%

82.8

30.0%
80

23%
Other

11%
Investment in
Affiliates

2000 1,916.9
39%
Investment
In Operating
Leases17%
10%
Property
Inventories
under Facility
Operations

70.1

73.7

71.9

19.3

20.3

25.0%
70
57.0

20.0%
60
1500

7.5%

15.0%
50

10.0%
40

1000

821.2

5.0%
30

0.0%

20
-5.0%

500

10
-10.0%

0-15.0%

0

10.3

15.3
Real Estate Segmement Assets
Ratio to Total Segment Assets

20.3

16.3

17.3

18.3

*Including rental properties in segments other than the Real Estate segment
Not including property under facility operations

Copyright © 2020 ORIX Corporation All rights reserved.

18

Segment Performance（3） PE Investment and Concession
YoY -5.8 JPY Bn (-56％)

Segment Profits: 4.5 JPY Bn✓ PE investment: operating profits remained steadyYTD 9.9 JPY Bn (+3％)

Segment Assets: 332.4JPY Bn✓ PE investment: 1* new investment in healthcare industry in Japan, no EXIT

However, total profits decreased due to the posting of a gain on sales in FY 20.3

✓ Concession: remained flat

✓ Concession: the number of passengers decreased at Kansai Airports(Jan-Mar results accounted with 3-month lags)*DOJIN IYAKU-KAKO CO., LTD: Producer and seller of prescription and OTC drugs(JPY Bn)

Segment Profits

50

Segment Assets and ROA(JPY Bn)
400

12.0%

40

10.0%

10.0%
300

19.3
30

60.1

60.0
8.0%

49.2
6.2%

200

6.0%

20

272.4

13.0

24.8

10

100

230.8

3.8%

262.4

3.2

10.1

7.1

0
19.3

20.3
PE Investment

20.3 Q1

4.0%
2.0%

4.6
-0.1
21.3 Q1

Concession

0

0.0%
19.3

20.3

21.3 Q1

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

Copyright © 2020 ORIX Corporation All rights reserved.

19

PE Investment and Concession
Main Business: (PE Investment) Private equity investment in Japan(Concession) Operation of airports and wastewater treatment plant
Major PE Investment in Japan
Company Name

InitialInvestment

Structure of Concession Operation
Business

Kobayashi Kako Co., Ltd

FY 20.3

Producer and seller of generic drugs

Wako Pallet Co., Ltd.

FY 20.3

Seller and leaser of logistics equipment

Cornes AG CORPORATION

FY 19.3

Dairy equipment services

Primagest, Inc.

FY 18.3

Japanese
Government

Kansai
Airports

Information processing service

Considerationfor operating right
Return performance
guarantee deposit

Investment

Koike Co., Ltd.

FY 17.3

Finance

Manufacturer of electronic materials
Repayment

Fujita Pharmaceutical Co.,Ltd.

FY 17.3

Producer of veterinary pharmaceuticals

Kyoto Biken Laboratories,Inc.

FY 17.3

Producer of veterinary animal vaccines

INNOMEDICS Medical
Instruments, Inc.

FY 15.3

Sales of medical equipment anddevices

Net Japan Co., Ltd.

FY 15.3

Recycling of precious metals andjewelry

Owner ofairports

LenderDividends（Consortium）

ORIX*
40%

VINCI Airports
40%

Other Shareholders
20%*Total amount of dividends received to date almost equals to the initialinvestment after 4 years of operation
Copyright © 2020 ORIX Corporation All rights reserved.

20

Segment Performance（4） Environment and Energy
YoY +4.4 JPY Bn (+118％)

Segment Profits: 8.1 JPY Bn

Segment Assets: 482.8 JPY Bn✓ Solid performance in the Solar Power business

YTD +4.0 JPY Bn (+1%)✓ Assets remained flat

✓ Profits increased due to the impact of acquisition accounting in additional

investment made in FY20.3 for India's wind power business

Segment Profits

Solar power business in Japan

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

15

500

1,000

400

10

780

750

300

5

11.6

200

870

910

910

20.3

20.6

700

482.8

478.8

12.1

840

500

395.6

4.6%

8.1
100

0

250

2.2%

3.7

1.8%

0

0

19.3

20.3

20.3 Q1

Environment and Energy

21.3 Q1

19.3
Environment and Energy

20.3

21.3 Q1

18.3

18.9

19.3

19.9

Segment ROA (annualized and after-tax)

Copyright © 2020 ORIX Corporation All rights reserved.

21

Environment and Energy
Main Business: Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panelsand electricity storage system; recycling and waste management（as of March 31, 2020）

Segment Assets

Major Investment Overseas（Renewable Energy）（as of March 31, 2020）

InvesteeCountry

Primary Business

Capacity*

Direct/Indirect
Investment

Ormat Technologies,
Inc.

USA

Geothermal Power
Generation

914MW

21%

Wind Power
Generation Business

India

Wind Power Generation

873MW

100%

VietnamHydroelectric Power andSolar Power Generation

895MW

6%

12%
Other
17%
Investment in
Affiliates

71%
Property
under Facility
Operations

Bitexco Power
Corporation
・Ormat Technologies, Inc.
・Bitexco Power Corporationand others*Capacity indicated at gross volume regardless of ORIX’s share・Renewable energy (Japan and Overseas)

ex. Wind power generation business in India
and others
Copyright © 2020 ORIX Corporation All rights reserved.

22

Segment Performance（5）Insurance
Segment Profits: 18.0 JPY Bn

YoY +4.8 JPY Bn (+36％)

Segment Assets: 1,664.0 JPY Bn✓ Life Insurance: non-face-to-face sales such as mail order and Internet sales

YTD +83.8 JPY Bn (+5％)✓ Investment securities increased in Life Insurance

increased✓ Former Hartford Life Insurance: profits increased due to reversal of liability reservein line with market recovery

Segment Profits

Segment Assets and ROA

Number of Insurance
Policies in Force(JPY Bn)
2,000(Millions of policies)(JPY Bn)
70

5.00
4.50

1,500

4.00
3.0%

3.1%

50

2.2%
55.8

51.0

-10

-4.2

-6.2

19.3

20.3

1,254.5

Life Insurance

19.9

20.3

20.6

1.50
1.00

12.8

13.6

0.50
0.00

0

Former Hartford Life Insurance

19.3

2.00

1,580.2

4.3

21.3 Q1

18.9

3.50

0.4

20.3 Q1

4.58

2.50

1,664.0

500
10

4.53

4.10

4.39

3.00

1,000
30

3.94

4.26

19.3

Life Insurance

20.3

21.3 Q1

18.3

Segment ROA (annualized and after-tax)

Copyright © 2020 ORIX Corporation All rights reserved.

23

Life Insurance• “Simple and easy-to-understand products” and “affordable pricing insurance”• Optimal products aligned with evolving customer needs• Omnichannel strategy utilizing four sales channels - agency, banks and other financial institutions, mail order andInternet sales, and ORIX Life reps - for providing services that caters to customer’s needs
Breakdown of General Account Assets*

Segment Profits*（as of March 31, 2020）

1%
Other
Securities
21%
foreignsecurities（public
bonds）

Number of Insurance Polices in Force(Annualized premium) (as of March 31, 2020)(JPY Bn)

11%
Other
assets16%
Cash anddeposits**The
third sector
54%

47.6
4.3
3.6

51%
Public and corporate
bonds
8.9
10.3

16.5

21.3

25.2

29.1

11.3

12.3

13.3

14.3

ORIX Life Insurance* ORIX Life Insurance financial results (JGAAP）**Segment Assets does not include cash and deposits

40.5

37.3

15.3

-2.9
16.3

47.7

42.8

17.3

18.3

55.8

51.0

-4.2
19.3

-6.2
20.3

The
first sector
46%

・The first sector （Death protection, etc.)

Former Hartford Life Insurance

・The third sector（Heath insurance, Cancer insurance, etc.）*Segment Profits in FY15.3 includes bargain purchase gains by the acquisitionof Former Hartford Life Insurance

Copyright © 2020 ORIX Corporation All rights reserved.

24

Segment Performance（6）Banking and Credit
YoY +2.3 JPY Bn (+25％)

Segment Profits: 11.5 JPY Bn

Segment Assets: 2,629.5 JPY Bn✓ Banking: profits remain steady due to accumulation of high-quality assets

YTD +25.7 JPY Bn (+1％)✓ Banking: capturing real estate investment loans demand by utilizing online

capability✓ Credit: profits increased due to a decrease in provision for credit losses✓ Credit: installment loans decreased due to a decline in demand

Segment Profits

Segment Assets and ROA(JPY Bn)

3,000

40

（as of March 31, 2020）

11.5

ORIX Bank

179.1

182.2

2,500

12.2
30

Gross Margin and Yield*(JPY Bn)（non-consolidated）

184.1
2,000

1,500

20

2,132.7
25.0

1.1%

1.1%

1,000

26.9

10
3.0

2,450.4

2,421.5500
6.2

20.3 Q1

21.3 Q1

0
20.3
Banking

Credit0.18%

Gross Margin of
Capital

1.94%

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

19.3

Banking

Funding Yield*ORIX Bank's financial results disclosure materials (JGAAP)

0

19.3

2.12%

1.2%

5.3

6.2

Investment Yield

20.3

Credit21.3 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 © 2020 ORIX Corporation All rights reserved.

25

Banking and Credit• Banking: ORIX Bank offers distinctive products and services such as real estate investment loans, card loans,trust products and investment trusts
No retail branches, ATMs, or handle settlement functions, based on a low-cost operation• Credit : ORIX Credit operates in three core retail businesses; the loan business, the credit guarantee business andthe mortgage banking business
Segment Profits（as of March 31, 2020）(JPY Bn)

11.5

12.2

10.5

Key Indicators* of ORIX Bank
（non-consolidated）
ROE

9.3%

Non-performing
loan ratio

0.37%

Credit Rating

AA-（R&I）

6.7

9.3
4.0
10.3

1.2

1.5

8.1

7.0

7.5

7.3

7.7

9.9

10.3

11.0

11.7

13.2

11.3

12.3

13.3

14.3

15.3

16.3

Banking

17.9

17.3

21.6

18.3

25.0

19.3

26.9

20.3

*ORIX Bank financial results disclosure materials (JGAAP）

CreditCopyright © 2020 ORIX Corporation All rights reserved.

26

Segment Performance（7） Aircraft and Ships
Segment Profits: 7.3 JPY Bn

YoY -3.3 JPY Bn (-31%)

Segment Assets: 586.1 JPY Bn✓ ORIX aircraft-related business: gain on sales of aircraft decreased

YTD +0.8 JPY Bn (flat)✓ ORIX aircraft-related business: Remained flat due to restrained new investment in

the aircraft leasing business✓ Avolon: increased due to one-time profit despite a decline in leasing revenue✓ Excluding FX impact of -5.6 JPY Bn, segment assets increased by 6.4 JPY Bn

Segment Profits*

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

Aircraft leasing business（as of June 30, 2020）

800

50

40

600

4.7

17.7

30

ORIX

AvolonBusinesshistory

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

10 years(Established in 2010)

Business
Model• Mainly trading in secondhand market• Strengths include
arrangement of aircraft
purchases to third parties
and asset management
services• Sizable direct orders toaircraft manufacturers• Strengths in direct leasing of
the fleet

ORIX
Investment
ratio

100%

30%
(acquired in November 2018)

RatingS&P: Top Strong(servicer ranking)

5.0%

4.9%
400
646.3

20
31.7

27.6

10

585.3

586.1

200
3.3
7.3

5.9

20.3 Q1

21.3 Q1

1.4

0
19.3

20.3

Aircraft and Ships (exc. Avolon)

3.4%

Avolon*Avolon’s segment profits were reclassified to USGAAP thatdifferent from those announced by Avolon based on IFRS

0
19.3

20.3

21.3 Q1

Aircraft and Ships
Segment ROA (annualized and after-tax)

Fitch : BBBMoody's : Baa3
S&P : BBB-

Copyright © 2020 ORIX Corporation All rights reserved.

27

Aircraft Leasing Business
GLOBALLY
DIVERSE
（NBV）

ORIX

NARROWBODYWEIGHTING（number of aircraft）

OEM
BREAKDOWN（number of aircraft）

15%

17%

Owned
fleet
72

Committed
fleet
Nil

Average age
5.7 years

34%
46%
54%

85%

49%
APAC
Americas
EMEA

Narrowbody

AirbusWidebody

BoeingAvolonRemaininglease term
7.1 years

Managed fleet
136

Owned
fleet
486

Committed*
fleet
277

21%
31%

33%

＊Reduced from 400
aircraft at the end of
December 2019

Average age
5.2 years

52%

Fully placed through theend of 2021

67%
17%

79%
APAC
Americas
EMEA

Narrowbody
Widebody

AirbusBoeingRemaininglease term
6.8 years

The next unplaced
B737MAX is scheduled fordelivery in 2024

(as of June 30, 2020)
Copyright © 2020 ORIX Corporation All rights reserved.

28

Segment Performance（8） ORIX USA
YoY -15.5 JPY Bn (-98%)

Segment Profits: 0.2 JPY Bn

Segment Assets: 1,316.8 JPY Bn✓ Significant decrease in profits due to the impact of the posting of a gain on sales of

YTD -57.2 JPY Bn (-4％)✓ Installment loans decreased

Houlihan in FY 20.3 and the recording of additional reserves, mainly for energyrelated business✓ Excluding FX impact of -13.7 JPY Bn, segment assets decreased by 43.5 JPY Bn✓ AUM increased steadily✓ Finance revenue and services income were solid. Hunt, acquired in FY20.3, also

contributed

Segment Profits

Segment Assets and ROA(JPY Bn)

AUM(JPY Bn)

60（USD Bn）

1,500

1,200
40

900

48.3

3.4%

56.7

1,374.0

50.1

600

20

1,316.8

15.8
0.2

0
19.3

20.3
ORIX USA20.3 Q1

21.3 Q1

0.1%

0
19.3

20.3

21.3 Q1

Segment ROA (annualized and after-tax)

43.8

44.5

24.4

9.5
6.5

10.1
7.6

10.7
7.0

12.9

12.8

6.2

6.2

17.3

18.3

19.3

20.3

21.3 Q1

RB Capital

ORIX USA

6.0
7.7

23.4

15.8
300

6.0
7.6

5.3
7.4

7.9

1,152.9

77.1

7.2

39.7

3.1%

54.8

76.5

Mariner

OREC*

BFIM

NXT

*In 2019, RED Capital Group and Lancaster Pollard Holdings, in 2020,
Hunt Real Estate were integrated into ORIX Real Estate Capital Holdings

Copyright © 2020 ORIX Corporation All rights reserved.

29

ORIX USA
Main Business: Finance, investment and asset management in the Americas
Segment Assets（as of March 31, 2020）
20%
Other

・Municipal Bonds
・CMBS/RMBS etc.
・Private Equity Investment
and others

23%
Investment inSecurities

Major Investment

NET* Segment Revenue（FY 20.3）

・Leveraged loan
・Real estate finance loan
and others

57%
Installment
Loans

・Red Capital Group・Lancaster Pollard
・Boston Financial
・NXT Capitaland others
Primary Business・Leveraged loan
・Real estate finance loan
and others

17%
Other

32%
Servicesincome＊NET Segment Revenue =Segment Revenue - Segment
Expenses51%
Financerevenues(Before deduction of Selling,
General and administrative
expenses)

NET

NET

Acquired

Direct/Indirect Investment

Hunt Real Estate Capital, LLC *Loan origination and servicing

Dec. 2019100%

NXT Capital Group, LLC

Loan origination and asset management

Aug. 2018100%

Lancaster Pollard Holdings, LLC *Loan origination and servicing

Spt. 2017100%

RB Capital S.A.

Real estate securitization, asset management,
and real estate development and investment

Dec. 2016

67%

Boston Financial Investment Management, LP

Low-income housing tax credit syndication

Jul. 2016

100%

RED Capital Group, LLC *Loan origination and servicing

May. 2010100%*In 2019, RED Capital Group and Lancaster Pollard Holdings, in 2020, Hunt Real Estate were integrated into ORIX Real Estate Capital Holdings

Copyright © 2020 ORIX Corporation All rights reserved.

30

Segment Performance（9） ORIX Europe
YoY -1.8 JPY Bn (-21%)

Segment Profits: 6.7 JPY Bn✓ Profits decreased due to reduction in AUM resulting from the market decline at theend of FY20.3✓ AUM increased moderately with market recovery✓ Excluding FX impact of +4.1 JPY Bn, segment assets increased by 4.8 JPY Bn

Segment Profits

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

10.0%
9.1%

40

9.0%
8.0%

300

7.0%

7.0%
5.7%

30

200
317.8

326.7

35.6

100
6.7

20.3 Q1

21.3 Q1

020.3

ORIX Europe

291

289

295
233

255

2.0%
1.0%

0
19.3

4.0%
3.0%

10

8.6

6.0%
5.0%

343.1

43.8

AUM

（EUR Bn）

400

50

20

YTD +8.9 JPY Bn (+3％)

Segment Assets: 326.7 JPY Bn

0.0%
19.3

ORIX Europe

20.3

17.3

21.3 Q1

18.3

19.3

20.3

21.3 Q1

Segment ROA (annualized and after-tax)

Copyright © 2020 ORIX Corporation All rights reserved.

31

ORIX Europe
Main Business: Equity and fixed income asset management

AUM*

Major Asset Management Business（EUR Bn）

280.6

290.5

288.7

Head OfficePrimary Business

Established(Acquired)

RobecoRotterdam

Stocks, bonds, andinvestment solutions

1929（2013）

Boston Partners

BostonU.S. and global equities

1995（2013）

Harbor Capital Advisors

ChicagoManager selection*

1983（2013）

Transtrend

Rotterdam

CTA**

1991
（2013）

294.5

262.5

255.2

232.8
210.8

14.3

15.3

16.3

17.3

*ORIX acquired Robeco in July 2013

18.3

19.3

20.3

20.6
*Creation of stock or bond mutual funds and selection of the most appropriate manager for each fund
* * Commodity trading advisor: Company or manager that manages customer financial assets by diversifying into a wide rangeof financial products including hedge funds and other commodity futures as well as currency and stock index futures

Copyright © 2020 ORIX Corporation All rights reserved.

32

Segment Performance（10） Asia and Australia
YoY -6.6 JPY Bn (-47%)

Segment Profits: 7.4 JPY Bn

Segment Assets: 1,008.0 JPY Bn✓ Profits decreased due to large investment gains in FY 20.3, despite positive gain

YTD -2.3 JPY Bn (flat)✓ Unchanged from the end of the previous FY

recorded in Q1✓ Excluding FX impact of +22.3 JPY Bn, segment assets decreased by 24.6 JPY Bn✓ Credit losses increased in Asia

Segment Profits

Segment Assets and ROA

Segment Assets by Region(JPY Bn)(JPY Bn)

15

1,200
18%

2.0%

22%

900

10

6%

14.7

996.7

1.0%

7.4

0

300

8%
9%

0.5%

0

19.3

20.3

20.3 Q1

Asia and Australia

21.3 Q1

19.3
Asia and Australia

16%

1,008.05
7.5

FY21.3 Q1

8%1,010.3

600

14.0

20.3

21.3 Q1

13%

Korea

China

Hong Kong

Australia

Indonesia

Malaysia

TaiwanOthersSegment ROA (annualized and after-tax)

Copyright © 2020 ORIX Corporation All rights reserved.

33

Asia and Australia
Main Business: Finance and investment businesses in Asia and Australia
Major Subsidiaries（Asia and Australia）

Segment Assets

NET* Segment Revenue（FY 20.3）(as of March 31, 2020)

4%
Other

22%
Investment in
Affiliates

18%
Other

33%
Net Investmentin the Leases

19%
Investment in
Operating
22%
LeasesInstallment Loans

39%
Financerevenues

10%Servicesincome NET

NET

33%
Operating leases
NET＊NET Segment Revenue = Segment Revenue - Segment Expenses(Before deduction of Selling, General and administrative expenses)

Company NameCountry(Region)Primary Business

Established

ORIX Asia Limited

Hong Kong

Leasing, Automobile
Leasing, Lending, Banking

Sep. 1971

ORIX Leasing Malaysia
BerhadMalaysia

Leasing, Lending

Sep. 1973

PT. ORIX Indonesia
FinanceIndonesia

Leasing, Automobile
Leasing

Apr. 1975

ORIX Australia
Corporation Limited

Australia

Automobile Leasing andTruck Rentals

Jul. 1986

India

Automobile Leasing,
Rentals, Leasing,
Commercial
Vehicle Loans, Commercial
Mortgage Loans

Mar. 1995

Automobile Leasing,
Leasing, Lending

Feb. 2004

Leasing, Rental

Aug. 2005

ORIX Auto
Infrastructure Services
Limited
ORIX Capital Korea
Corporation
ORIX China
Corporation

South Korea
China

Copyright © 2020 ORIX Corporation All rights reserved.

34

Appendix

Copyright © 2020 ORIX Corporation All rights reserved.

35

Our View for FY21.3(Announced at Annual financial results briefing on May 22, 2020)✓ Major battle against COVID-19 may not conclude in the 1H both in Japan and the restof the world
If the situation gradually normalizes by the end of Q3, the net income is estimated at about 180.0 ~ 200.0 JPY Bn
If the situation continues until the end of this fiscal year, the net income is estimated as about 80.0 ~ 120.0 JPY Bn✓ It is difficult to announce the guidance for this fiscal year at the moment because

there are many uncertainties
Announcement will be made once we have better visibility into our businesses

Copyright © 2020 ORIX Corporation All rights reserved.

36

Stress Test of Liquidity(Announced at Annual financial results briefing on May 22, 2020)✓

No concern over current funding environments. Even with stressed assumptions and possible 500 JPY Bn
worth new investments and/or lending, the liquidity at the end of FY21.3 still exceeds 600 JPY Bn✓

Prioritizing liquidity management, while controlling the pace of new investments and lending（JPY Tn）
Financial CF
About - 300 JPY Bn

Bank andLife Insurance*1*1 Financial CF stressed assumptions:
1. Capital market funding: Cannot roll against the debt due.
2. Bank borrowings: Can roll only 50% of debt due.

New Executions
500 JPY Bn

Sales cash in*2
About 700 JPY Bn

Bank andLife Insurance

About
1 JPY Tn

20.3
Liquidity*

21.3
Sales andInvestment CF

21.3
Financial
CF

OthersNew
Executions*2 Sales cash in stressed assumptions:
1. 30% delay in collection against 1 JPY Tn debt type asset
with due date.
2. No estimation of large asset sales.

21.3
Liquidity*Liquidity: Cash and cash equivalent (incl. Life Insurance and Bank) + available commitment lines
Copyright © 2020 ORIX Corporation All rights reserved.

37

Medium to Long-term Direction
Basic Concepts(Announced at Q2 financial results briefing on October 29, 2019)

Continue Growth
Realize profits at the right time after adding value to the existing investments.
Maintain the ROE target 11% or higher for medium to long term

Never Miss Business Opportunities
We will not miss business opportunities in order to avoid a credit rating downgrade
At the same time, we are making maximum effort to maintain the credit rating

Strengthen the Shareholders Return
Prioritize investments but will not hold unnecessary capital, return the excess.
✓ We expect the market to recover after COVID-19 crisis. It is an opportunity to capture further growth.
✓ While our ambition to achieve net income of 400 JPY Bn and 500 JPY Bn remains unchanged, the time
horizon for achieving these goals needs to be reviewed.

✓ The new mid-term business plan will be shared once we can start to see the end of COVID-19 crisis.
Copyright © 2020 ORIX Corporation All rights reserved.

38

(Announced at Q2 financial results
briefing on October 29, 2019)

Medium to Long-term Direction✓

Promoted financial soundness after the global financial crisis. Managed to achieve major improvement since thenTransition of
key financial indicators
1. Financial leverage
D/E ratio (excluding deposits)

2. Dependence on short-term funding
Short-term debt + CP

3. Liquidity
Cash* + Available long-term commitment lines

4. Shareholders’ Equity Ratio
Shareholders’ equity ÷ Total assets

FY2008.3

FY2020.3**

4.6 times

1.5 times

1.3 JPY Tn

0.3 JPY Tn

0.4 JPY Tn

1.3 JPY Tn

14.1%

22.9%

*Including cash of ORIX Bank and ORIX Life Insurance**as of March 31, 2020

Reference; Credit ratings (as of June 30, 2020)
S&P: A - (Negative) Moody’s: A3 (Negative) Fitch: A - (Negative) R&I: AA - (Stable)
Copyright © 2020 ORIX Corporation All rights reserved.

39

About ORIX

Proven Track Record of Profitability✓ ORIX has achieved 55 years of sustained, profitable growth
Net Income Attributable to ORIX Corporation Shareholders(JPY Bn)

350
300

250

FY2002.3

FY2009.3

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 © 2020 ORIX Corporation All rights reserved.

40

About ORIX

Expertise in Business and Collective Capabilities of the Group✓ ORIX will continue to enhance our expertise in finance and tangible assets as we synergistically
expand our businesses

Copyright © 2020 ORIX Corporation All rights reserved.

41

About ORIX

Profits and Assets by Segment✓ Individual businesses demonstrate their strengths to the maximum extent possible to bring about synergies
Corporate Financial Services
and Maintenance Leasing
Real Estate

Finance and fee business; leasing and rental of automobiles, electronic measuring
instruments and IT-related equipment; Yayoi
Real estate development, rental and management; facility operations; real estate
asset management

10%
9%
0%
10%

PE Investment and Concession

Private equity 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

13%
2%
6%

Segment Profits
75.4 JPY Bn

15%

11%

FY21.3 Q1

24%

3%

9%

16%

12%

Segment Assets
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

5%

8%
3%
5%

10.9 JPY Tn
FY21.3 Q1

24%

Copyright © 2020 ORIX Corporation All rights reserved.

15%

42

About ORIX

Global Network✓ Using its expertise cultivated in Japan, ORIX has expanded its business globally, with operations in 37
countries and regions worldwide

Copyright © 2020 ORIX Corporation All rights reserved.

43

Financials (1) 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

as of June 30, 2020

CP
0.6%

5.00%

100%

4.00%

80%

3.00%

60%

2.00%

40%

1.00%

20%

0.00%

0%
16.3

17.3

Funding Cost（left axis:JPY）

18.3

19.3

20.3

20.6

Funding Cost（left axis:Foreign Currency）

Long-term Debt Ratio（right axis）
Copyright © 2020 ORIX Corporation All rights reserved.

44

Financials (2) Debt-to-Equity Ratio✓ Debt-to-Equity Ratio continuously stays at a low level
Trend in Debt-to-Equity Ratio(JPY Tn)

8
7

Total ORIX Corporation
Shareholders’ Equity
2.5×
2.3×

6

5

2.2×

2.2×

2.3×

2.4×

Deposits

1.9×
1.7×

4

1.5×

1.6×

1.5×

1.6×

3

Short- and Long-Term Debt
（Excluding Deposits)
Debt-to-Equity Ratio（Including Deposits)

2

Debt-to-Equity Ratio

1（Excluding Deposits)

0
16.3

17.3

18.3

19.3

20.3

20.6
Copyright © 2020 ORIX Corporation All rights reserved.

45

Financials (3) Bond Maturity Ladder✓ Leveled out annual redemption amounts by dispersing bond maturities
Maturity Ladder (as of June 30, 2020)(JPY Bn)
150

100
Matured
ORIX Domestic Bond for Institutional Investors *50

ORIX Domestic Bond for Retail Investors
ORIX Overseas Bond / Local Subsidiary Bond /Others

0
21.3

22.3

23.3

24.3

25.3

26.3

27.3

Beyond* Of our issued domestic bonds for institutional investors, 100 billion yen are publicly offered hybrid bonds issued
in the fiscal year ended March 2020 (subordinated corporate bonds, due in the fiscal year ending March 2080).
We may prepay 60 billion yen of such bonds after 5 years from the issue date and 40 billion yen after 10 years from the issue date.
Copyright © 2020 ORIX Corporation All rights reserved.

46

Business Portfolio in Three Categories
Categories

Finance

Operation

Investment

Main Risk

Credit risk

Operation/Business risk

Market risk

Capital Requirement

Low

Medium-High

High

Japan

Corporate Financial
Services andMaintenance Leasing

Overseas

Environment/
Infrastructure

Financial Services

Leasing, Loan,
Fee business

Real Estate

Facilities operation,
DAIKYOPE Investment andConcession

Concession

Environment and Energy

Environment andenergyInsurance

Maintenance Services

OthersFixed Income

ORIX Auto,
ORIX Rentec

Yayoi

Loan servicing

Tangible Assets

EquityNew businessdevelopment

RE investment

Asset management

PE investment

Life insurance

Segments
Banking and Credit

Banking,
Consumer finance,
Gurantee

Aircraft and Ships
ORIX USA

Aircraft, Ships

Leasing, Loan

ORIX Europe
Asia and Australia

Asset management

Bond investment

PE investment

Asset management

PE investment

Leasing, Loan

Copyright © 2020 ORIX Corporation All rights reserved.

47

Shareholders Return(Announced at Annual financial results briefing on May 22, 2020)✓ Full year dividend at 76 yen per share in FY20.3, payout ratio at 32%. Interim dividend forecast in FY21.3 is 35 yen✓ Raise the payout ratio to 50% for FY21.3 only
✓ Consideration of the share repurchase after the COVID-19 crisis
Dividend and Payout Ratio
Interim Dividend（JPY）

Year-End Dividend

Payout Ratio

50%
100.0
90.0
80.0

23%

25%

27%

30%

32%

50%
40%
30%

70.0

20%

60.0
50.0
40.0
30.0

39

23.75
22

0%
-10%

29.25

-20%

20.0
10.0

46

10%

41

23

27

30

35

35

0.0

-30%
-40%
-50%

16.3

17.3

18.3

19.3

20.3

21.3
(Forecast)

Copyright © 2020 ORIX Corporation All rights reserved.

48

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 © 2020 ORIX Corporation All rights reserved.

49

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
Corporate Planning Department
World Trade Center Building, 2-4-1,
Hamamatsu-cho, Minato-ku,
Tokyo 105-6135, Japan
Tel: +81-3-3435-3121
Fax: +81-3-3435-3154
orix_corpcomm@orix.jp
Copyright © 2020 ORIX Corporation All rights reserved.