ORIX Corporation
Second Quarter Consolidated Financial Results
For The Six-Month Period Ended September 30, 2021
Makoto Inoue

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

November 4, 2021

1

Company Name
(TSE: 8591; NYSE:
IX)

Copyright © 2020 ORIX Corporation All rights reserved.

Earnings Overview H1 Net Income & ROE✓

146.7 JPY Bn in net income (+56.3% YoY, 58.7% of FY22.3 forecast of 250.0 JPY Bn); annualized ROE of 9.5%✓

Best quarterly net income since start of pandemic (up 24.9% QoQ)(JPY Bn)

400.0

12.1%

Net income* and ROE
11.6%

Quarterly Net Income and ROE Trends(JPY Bn)

15.0%

10.3%

100

6.4%

350.0
300.0

FY22.3 Forecast
5.0%
250.0
0.0%

250.0

-5.0%

15.00%

12.3% 11.4%

10.0%
90

10.6%

9.6%

7.8%

80

70

8.6%

10.00%

6.8% 5.9% 6.5% 6.8%

5.00%

60

200.0
150.0

313.1

323.7

-10.0%

302.7-15.0%

192.4
146.7

(Annualized)-20.0%

50.0-25.0%

0.0-30.0%

18.3

19.3
Net Income

89.9

40

ROE 9.5%

100.0

50

20.3
21.3
ROE（annualized）

22.3

30

85.2

69.2

81.5
58.4

20

0.00%

65.2

50.0

43.8

48.2

50.4

-5.00%

10-10.00%

0

1Q

2Q

3Q

4Q

1Q

20.3

2Q

3Q

4Q

21.3

Net Income

1Q

2Q
22.3

ROE (annualized)*Net Income refers to Net Income Attributable to ORIX Corporation Shareholders
Copyright © 2021 ORIX Corporation All rights reserved.

2

Earnings Overview H1 Segment Profit Breakdown
FY22.3 H1Segment profits

Base Profits

173.5 JPY Bn, up by 45.6% YoY (+54.3 JPY Bn)
Five segments recorded major profit gains YoY: Corporate Financial Services & Maintenance Leasing,
Real Estate, ORIX USA, ORIX Europe and Asia/Australia

Investment
Gains*

66.6 JPY Bn, up by 77.3% YoY (+29.1 JPY Bn)
US private equity investment exit, sale of logistics facilities, gains on IPO via stake in Corporate
Financial Services business partner all contributed to the sharp upturn240.1 JPY Bn
up by 53.2% YoY(+83.4 JPY Bn)(JPY Bn)

500.0
400.0

470.1
143.1

Full-Fiscal Year, H1 Segment Profits
433.7

Quarterly Segment Profits(JPY Bn)

451.4
133.3

107.2 140.1

300.0

106.9

332.3

87.4

200.0

327.0 326.5 311.3
100.0

244.9

240.1

156.8
37.6

66.6

78.7

78.1

16.0

21.6

15.2

36.9

89.9
29.7
34.6

96.3

173.5

62.6

56.5

21.3 H1 22.3 H1

1Q

2Q

119.2

85.7

70.4

77.2

55.3

0.0
18.3

19.3

20.3

Base profits

21.3

Investment gains

21.3

3Q

Base profits

4Q

1Q

22.3

2Q

Investment gains*Primary sources of investment gains: gains on sales of rental property, subsidiaries and affiliates, investment securities, etc.
Please see P. 8, P. 51 for breakdown of investment gains

Copyright © 2021 ORIX Corporation All rights reserved.

3

Segment Performance (1) Segment Profits✓

Q2 profit rose QoQ in eight segments✓

Five segments recorded YoY profit increases of Y10 bn or more, totaling Y83.4 bn (+53.2%) in growth(JPY Bn)

240.1(JPY Bn)

21.3 H1

21.3 H2

22.3 Q1

22.3 Q2

22.3 H1

QoQ

YoY

Highlight

31.1

39.6

20.3

32.1

52.4

+11.8

+21.3

Profits up sharply on gains via investee IPO, valuation gains on remaining stake.
Auto, Rentec also performed well

11.0

14.9

11.0

12.8

23.9

+1.8

+12.9

Strong profit growth fueled by investment gains from logistics center sales, upbeat
earnings at Daikyo

PE Investment andConcession

4.3

-0.5

0.3

1.6

1.8

+1.3

-2.5

Profits up QoQ on healthy PE contributions, but lower YoY owing to concession
business losses

4 Environment and Energy

13.6

13.9

4.5

5.2

9.7

+0.7

-3.9

Absence of valuation gains booked in FY21.3 Q1 led to lower profits YoY

5 Insurance

35.3

20.8

15.5

17.5

33.0

+2.0

-2.3

Profits up excluding impact from former Hartford Life

6 Banking and Credit

25.2

24.7

12.8

9.3

22.1

-3.5

-3.1

Finance revenues rose at ORIX Bank, but absence of year-earlier reversals at Credit
led to lower profits

7 Aircraft and Ships

5.5

-0.2

-4.8

5.4

0.6

+10.3

-4.9

Segment profits up sharply QoQ on Avolon’s 2Q return to the black

8 ORIX USA

9.9

30.4

25.2

22.5

47.6

-2.7

+37.7

Robust profit growth YoY fueled by strong contribution from PE, other businesses

9 ORIX Europe

17.1

22.3

13.5

15.1

28.6

+1.6

+11.5

AUM reached new record high

10 Asia and Australia

3.8

9.3

8.8

11.7

20.5

+2.9

+16.7

Strong profit growth fueled by leasing business expansion in South Korea, China

156.8

175.5

106.9

133.3

240.1

+26.4

+83.4

-

1

52.4

Corporate Financial Services
and Maintenance Leasing

2 Real Estate
23.9

156.8

3
1.8

9.7
31.1
11.0

33.0

4.3

13.6

22.1
0.6

35.3

47.6

25.2

5.5
9.9
17.1

21.3 H1

3.8

28.6

20.5

Total

22.3 H1

Copyright © 2021 ORIX Corporation All rights reserved.

4

Segment Performance (2) Segment Assets✓

Assets increased on continued new investment (Elawan M&A closed in Environment and Energy segment)✓

Annualized segment asset ROA recovered to 2.6%, up 0.9 ppt vs. end-FY21.3(JPY Bn)

11,341.8
1,676.1

22.3 H1

1,659.6

872.1
378.7
489.2

878.1
368.8
695.4

1,959.5

1,963.0

2,690.6(JPY Bn)

11,601.5
1Corporate Financial Services
and Maintenance Leasing

YTD

ROA*

Highlight

1,659.6

-16.4

4.3%

Strategically reduced lending balance

2 Real Estate

878.1

+6.0

3.7%

Assets flat on continuing new development, sales of logistics facilities,
other properties

3 PE Investment and Concession

368.8

-9.9

-0.4%

Assets down slightly owing to losses in concession business

4 Environment and Energy

695.4+206.3

2.2%

Elawan acquisition fueled sharp increase in assets

5 Insurance

1,963.0

+3.4

2.4%

Assets mostly flat vs end-FY21.3

6 Banking and Credit

2,710.0

+19.4

1.1%

Bank assets rose on new renewable energy financing, and others

7 Aircraft and Ships

615.6

+13.9

-0.1%

Aircraft leasing assets fell owing to sale and depreciation, but assets rosein shipping

2,710.0

601.8

615.6

8 ORIX USA

1,188.4

-31.6

6.3%

Assets fell due to careful deal selection

1,220.1

1,188.4

9 ORIX Europe

397.1

+27.5

11.2%

Investment in securities rose

369.5

397.1

1,084.2

1,125.4

1,125.4

+41.2

2.8%

Growth in new leasing business in South Korea, China

11,601.5+259.7

2.6%

10 Asia and Australia

Total

21.3

22.3 H1-*Segment asset ROA is calculated using total post-tax unit profits

Copyright © 2021 ORIX Corporation All rights reserved.

5

Review of FY22.3 H1Current operating environment✓ Picture of post-COVID “new normal” beginning to emerge✓ Excessive liquidity worldwide has made it difficult to find cheap assets, creating a better environment forsellers✓ Continue to seek worthwhile new investment opportunities while retaining a somewhat cautious stance✓ Society’s expectations for solutions to ESG-related issues are growing

Solid FY22.3 H1 results✓ Growth in existing businesses bolstered by gains from well-timed asset sales (sale of logistics centers in Real Estatesegment, PE exits overseas)✓ Steady new business execution in focus areas (Environment and Energy, asset management, private equity)

ESG-related material issues and key goals✓ ORIX established ESG-related material issues and key goals to help realize a more sustainable society✓ Set up Sustainability Committee, an executive body to ensure implementation of material issues, key goals
Copyright © 2021 ORIX Corporation All rights reserved.

6

Earnings Highlights✓✓

Achieved 58.7% of 250 JPY Bn FY22.3 net income target, H1 net income up 56.3% YoY, annualized ROE of 9.5%
S&P upgraded ORIX’s outlook from A- (Negative) to A- (Stable)
FY22.3 H1

YoY

Achievement vs.
FY22.3 target

Net income

146.7 JPY Bn+56.3％

58.7%

ROE

9.5％

＋3.2 ppt-

Shareholder return
policyFinancial soundness

Full-year dividend of 78 JPY per share
50.0 JPY Bn in share repurchases*
Maintained financial base suitable for A credit rating
S&P upgraded ORIX’s outlook from A- (Negative) to A- (Stable) in August*Completed 38.4 JPY Bn (77%) of buyback program as of October 31
Copyright © 2021 ORIX Corporation All rights reserved.

7

Investment Gains✓ Recorded investment gains / valuation gains from ORIX USA, Real Estate segment, and Safie (Corporate

Financial Services business partner, cloud video recording platform)✓ Consistently generating more than 100 JPY Bn in investment gains annually from variety of sources(JPY Bn)
Segment

FY19.3

FY20.3

FY21.3

FY22.3 H1

Major FY22.3 H1 Developments

ORIX USA

37.6

39.5

28.9

29.0

Real Estate

58.2

54.7

18.4

15.6

PE & Concession

0.8

18.7

1.4

1.1

-

✓ First ORIX Capital Partners*1 exit (RoadSafe sale)✓ ORIX Private Equity Solutions*2 also achieved multiple PE exits✓ Sold one logistics facility (Osaka) in Q1, two in Q2 (Saitama)

Other

10.6

27.2

38.7

20.9

✓ Booked investment gains from IPO of Safie (4375 JP) in Sept 2021, valuation gains onremaining stake. First invested in Safie in Sept 2017 following a sales tie-up, reflectingsynergies with ORIX’s business functions and infrastructure

Total

107.2

140.1

87.4

66.6

-

*1 ORIX Capital Partners (OCP) offers asset management services utilizing principal as well as third-party capital. Established in 2016, OCP serves middle-market clients with private-equity deals averaging
between $75-$250 mn.
*2 ORIX Private Equity Solutions (OPES) invests in private equity and mezzanine using proprietary capital. Established in 2012, average deal size is between $10-20 mn.

Copyright © 2021 ORIX Corporation All rights reserved.

8

New Investments & Pipeline✓

Completed approximately 800 JPY Bn in new investments since start of FY21.3, primarily in Environment
and Energy, asset management, private equity✓

Retain ample investment pipeline for future growth, including Osaka integrated resort project (MICE-IR)
Area

Investment
amount (JPY Bn)

Major FY22.3 H1 developments

Environment and Energy

200✓ Elawan: Slated to complete construction on ~400 MW of solar, wind power facilities by end-2021✓ Greenko: Focusing on development of IREP* project capable of 24-hour renewable energy supply

Asset Management (US, Europe)30✓ Boston Capital: Integration with BFIM making progress, total ORIX USA AUM hit $73.3 Bn✓ Gravis Capital: Beginning discussions for collaboration with Elawan

Domestic PE business90✓ APRESIA Systems & ORIX Rentec begin rental service for local 5G

Real Estate100✓ Continuing successful ‘develop, operate, and sell’ model for logistics center development, focused
primarily in Tokyo metro area

Other

360

✓ Making timely investments in various areas, including state-of-the-art ‘eco ship’ bulk carriers and PE
projects in Asia

Total

Approx. 800-(FY21.3 + FY22.3 H1)*Integrated Renewable Energy Project (IREP)
Combines renewable energy sources (such as solar, wind) and storage batteries to create a power supply system capable of adjusting to changes in demand (similar to thermal power
plants). Specifically, a portion of the power generated by solar and wind systems is stored for release when needed, contributing to a stable power supply when weather conditions
interrupt renewable power generation.
Copyright © 2021 ORIX Corporation All rights reserved.

9

Renewable Energy Business✓ ORIX’s renewable energy capacity: diverse portfolio of quality assets✓ Extensive pipeline of projects in development, well positioned to grow generating capacity worldwide
Generating Capacity (In Operation / Under Construction)

ORIX Group
3,981 MW*1

Domestic Company ‘A’

Domestic Company ‘B’

570 MW*2

708 MW*3(Market cap: ~360 JPY Bn)(Acquisition price: ~200 JPY Bn)

(MW）
4,500

■ In operation■ Under construction

4,000
3,500

(Overseas)

3,000

3,133

2,500

2,237 in operation+
896 under construction

2,000
1,500
1,000
500
0

14
Japan

834

241
329

329
379

*１Generating capacity figure adjusted to reflect ORIX’s ownership stake in group companies or projects (as of end-Sept 2021)*２Company ‘A’ generating capacity figure calculated by ORIX, reflects firm’s ownership stake in each project based on information disclosed in FY22.3 Q1 results supplementary materials.
*３Company ‘B’ acquisition price based on information in relevant press release from company. Generating capacity reflects firm’s ownership stake in each project.

Copyright © 2021 ORIX Corporation All rights reserved.

10

Osaka MICE-IR Project✓ On September 28, ORIX-MGM consortium was selected to operate planned integrated resort development. Osaka
Prefecture/City aim to apply to central government for approval of area development plan in April 2022
✓ Aims to contribute to sustainable growth of the Kansai region, and expansion in tourism and economy nationwide
Initial investment✓ Approx. 1.08 JPY Tn (pre-tax)
Annual visitors✓ Approx. 20.5 million people (14 million domestic, 6.5 million
from overseas)
Annual revenue✓ Approx. 540 JPY Bn(Non-gaming: ~110 JPY Bn, gaming: ~430 JPY Bn)
Employment✓ Approx. 15,000 jobs
*Content taken from 9/28 proposal overview released by Osaka Prefectural government
Copyright © 2021 ORIX Corporation All rights reserved.

11

ESG-related Material Issues✓ Identification of material issues and focus areas for promoting sustainability
Material issues and focus areas to reduceclimate change risk
1

Set greenhouse gas (GHG) emissions
reduction goals.

2

Continue to lead in renewable energy
investment and production.

3

Quantify and reduce our climate-relatedrisks and continue to implement TCFD
recommendations.

4

Continue to promote a circular economy
and reduce and appropriately manage
waste.

5

Formulate an exit strategy for existing
exposure to high environmental riskbusiness areas, and create bright-line
exclusion criteria in any new investing or
lending

6Work with stakeholders to promote a
healthier environment through goods andservices that help mitigate adverse
environmental impacts.

Material issues and focus areas to reducesocial risks, including human rights risk
Continue to strengthen our Sustainable
Investing and Lending Policy, Code of
1 Conduct, and risk management system toadequately cover new and emerging social
risk areas.
Share a common and agreed respect for
fundamental human rights with all of our
stakeholders such as support for the UN
2
Universal Declaration of Human Rights,
worker health and safety, diversity, inclusion,and non-discrimination.
Continue to improve employee satisfaction
by respecting the diversity of our employees
and creating an inclusive working
environment that promotes flexible working
3styles and provides career development
support, fair performance review andcompensation schemes, and employee
health support systems.

Material issues and focus areas to strengthen
governance based on transparency, compliance,
and integrity
Continue to strengthen the independenceof the Board of Directors so that the Board
may provide an appropriate and effective
1
oversight over the management’s businessexecution from an independent andobjective perspective.

2

The Group CEO will be responsible for all
execution matters including responding tothese material issues under the oversight of
the Board of Directors.

3

Emphasis on client satisfaction anddeveloping and offering sustainableproducts and services.

4

Endeavor to gain and keep the trust of ourclients in all of our business areas.

5

Promote a strong culture of compliancewith all applicable laws and regulations,
including paying our fair share of taxes.

Copyright © 2021 ORIX Corporation All rights reserved.

12

ESG-related Key Goals✓ ORIX Group has established the following ESG-related key goals based on our material issues and focus areas
1. Outside directors to account for over half of the composition of the ORIX Group Board of Directors by the General Meeting of
Shareholders set to be held in June 2023.
2. Female directors to account for over 30% of the composition of the ORIX Group Board of Directors by the end of the fiscal year
ended March 31, 2030.
3. Female employees to account for over 30% of management positions at ORIX Group by the end of the fiscal year ended March 31,2030.
4. Reduce ORIX Group GHG (CO2) emissions by 50% compared to the fiscal year ended March 31, 2020 by the end of the fiscal year
ended March 31, 2030.
5. ORIX Group to achieve net zero GHG (CO2) emissions by the end of the fiscal year ended March 31, 2050.
6. Reduce ORIX Group’s investment and credit balance in GHG (CO2) emitting industries* by 50% compared to the fiscal year ended
March 31, 2020 by the end of the fiscal year ended March 31, 2030.
7. ORIX Group to achieve a zero investment and credit balance in GHG (CO2) emitting industries* by the end of the fiscal year ended
March 31, 2040.
* Refers to the fossil fuel mining, palm oil plantations, and forestry financed by some ORIX Group overseas subsidiaries

Copyright © 2021 ORIX Corporation All rights reserved.

13

ORIX Group Sustainable Investing and Lending Policy✓ Basic policy is to make decisions based on thorough consideration of the environmental and social effects of each transaction✓ In addition to sovereign risks such as government finances and legislation, human rights risks are also key factors in investment and credit
decisions
Prohibited Transactions

1. Organizations that carry out forced labor, child labor, human trafficking, or any other practices
defined as human rights offenses by the UK Modern Slavery Act
2. Organizations that are operating in countries/regions determined as high risk in relation tohuman rights violations and have participated in human rights violations
3. Sectors/businesses practices in which new transactions are prohibited**Manufacturers and sellers of cluster munitions, anti-personnel landmines, chemical weapons, biological weapons, depleted uranium ammunition, nuclear
weapons, and firearms; manufacturers and users of hazardous chemicals prohibited by the Japanese Industrial Safety and Health Act; parties in violation of
the Stockholm Convention on Persistent Organic Pollutants; parties in violation of the Convention on International Trade in Endangered Species of Wild
Fauna and Flora, otherwise known as the Washington Convention.

The Board of Directors’ primary role is determining mid- to long-term management strategy, capital policy, and deciding upon
policies and direction to ensure sustainable growth. The Board will direct ORIX Group’s sustainability promotion efforts.

Copyright © 2021 ORIX Corporation All rights reserved.

14

Establishment of Sustainability Committee
ORIX has established a Sustainability Committee, an executive body toprovide solutions for material issues and key goals⚫ ORIX Group CEO to serve as chair, with members
comprised of segment and department heads with direct

ESG-related responsibilities. Will consider inclusion of
third-party experts.
⚫ Committee to implement ESG-related material issues andkey goals through company-wide cooperation⚫ After establishing clear strategy, KPIs, and procedure forsustainability efforts, the Committee will report to andseek approval from the Board

Copyright © 2021 ORIX Corporation All rights reserved.

15

ORIX Group GHG (CO2) Emissions✓ Two coal-biomass co-fired power plants in Environment and Energy segment comprise 941,000 tons of 1.266 million ton total emissions(Unit: 10,000 Tons CO2)

FY20.3 ORIX Group GHG (CO2) Emissions (Baseline)% of total
emissions
Environment and Energy segment

86.0%

Total
emissions 1. Scope 1(Scope 1＋2)
108.9

106.9

Environment and Energy Segment (Major Facilities only)

2.0└Domestic energy - (1)(2)(3)

78.4%

99.2

98.2

1.0

└Environment (4)

7.6%

9.7

8.7

0.9

Real estate segment

6.7%

8.5

1.9

6.6

└Facilities operation business

4.7%

6.0

1.6

4.4

Corporate Financial Services &Maintenance LeasingPE

Total emissions(Scope 1＋2)

1. Scope 1

2. Scope 2(1) Soma Coal and Biomass Power Plant

45.2

45.1

0.1

(2) Hibikinada Coal and Biomass Power
Plant

48.9

48.8

0.0

(3) Agatsuma Biomass Power Plant

3.5

3.5

0.0

(4) Waste processing facilities

9.3

8.5

0.8

No. properties

Emissions% of total
emissions

2. Scope 2

Real Estate Segment

0.9%

1.2

0.1

1.1

Facilities under management

35

6.0

71.0%

4.1%

5.2

1.4

3.8

Office buildings

17

0.7

8.1%

Life insurance / Bank / Credit

0.7%

0.9

0.0

0.9

Large scale mixed-use facilities

2

0.5

5.9%

Overseas segments

0.8%

1.0

0.2

0.8

Logistics centers

8

0.3

3.7%

Headquarters, others

0.8%

1.0

0.1

0.8

Commercial facilities

21

0.2

2.5%

Total

100.0%

126.6

110.7

15.8

Rental condominiums

8

0.02

0.2%

Others (own offices, etc.)

330

0.7

8.5%

*See ORIX Group Sustainability Report 2021 for further information.
Copyright © 2021 ORIX Corporation All rights reserved.

16

GHG (CO2) Reduction Targets

Current total:
1.266 million tons

Key Goal #4

Key Goal #5

50%
reduction

Net zeroemissions2020.3
Environment & energy

2030.3
Real estate

Measures to Reduce CO2 Emissions
1. Increase woodchip mix to maximum of 40%
at Soma and Hibikinada Coal and Biomass
Power Plants
2. Promote conversion to next-generation fuelsources (including black pellets, ammonia) as
coal alternatives
3. Investigate implementation of carbon
capture and utilization (CCU) technology, othermeasures2050.3PE

Other

Copyright © 2021 ORIX Corporation All rights reserved.

17

GHG (CO2) Avoided Emissions through Renewable Energy✓ ORIX Group contributes to avoided emissions, primarily through its renewable energy business✓ GHG avoided emissions total more than 3.6 million tons, far exceeding actual emissions
ORIX Group GHG (CO2) Avoided Emissions(Unit: Million tons CO2e)3.63 Million tons CO e
2

3.09
2.62
1.84
1.39

2017.32018.32019.32020.32021.3Copyright © 2021 ORIX Corporation All rights reserved.

18

(blank)

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19

Segment Performance

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20

Segment Performance (1) Corporate Financial Services and Maintenance Leasing
YoY +21.3 JPY Bn (+69％)

Segment Profits: 52.4 JPY Bn

Segment Assets: 1,659.6 JPY Bn

YTD -16.4 JPY Bn (-1%)✓ Continue to strategically reduce exposure to Corporate Financial✓ Investment gains, gains on remaining stake recorded via IPO of Corporate

Services’ lending assets, given price competition in zero-interest rateenvironment

Financial Services’ business partner Safie✓ Auto profits up on healthy used car market, focus on margin improvement✓ Rentec profits up on strong demand(JPY Bn)

Segment Assets・ROA

Segment Profits

Yield on Loans

H1 Results

2,000

52.4

Quarterly
Results

4.3%
142.6
691.1

2.8%

2.8%

4.1

1,659.6
4.0%

2.4%

2.5%

2.3%

2.3%

2.3%

17.8

3.2

3.2

8.1

9.4

8.5

1.7

1.4

1.2

4.3

5.9

5.3

6.1

Q1

Q2

Q3

Q4

Corporate Financial Services

Yayoi

21.3

Auto

Rentec

97.3

10.5
1.7

500

11.2

5.3
1.7

22.3 H1

4.4

4.0

2.1

2.0

19.4

19.3

20.3

817.3

1.0%

0.5%

95.0

728.5

93.7

732.2

15.8
1.5

Q1

22.3

Q2

2.0%

20.3

21.3

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

22.3 H1
Yayoi
Rentec

314.9

297.8

299.7

285.3

304.6

0.0%

-0.5

-1.0

1.0%
0.0
0.0%

0

3.6

2.5%

1.5%

3.0%

1,000
20.3

3.0%

2.0%

706.3

32.1

10.3
21.3 H1

146.4
740.3

21.6

13.3

3.4

1,676.1

1,500

4.1
13.4

5.0%

1,804.2
149.3

8.2

31.1

(JPY Bn)(JPY Bn)

-1.5

-2.0
21.3 2Q

21.3 3Q

21.3 4Q

Installment Loans

22.3 1Q

22.3 2Q

Yields on Loans

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

Copyright © 2021 ORIX Corporation All rights reserved.

21

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

820,000 companies*1

Maintenance support contracts
provide steady revenue flow

Units in inventory:

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

1,407,000

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

22

Segment Performance (2) Real Estate
YoY +12.9 JPY Bn (+117%)

Segment Profits: 23.9 JPY Bn

Segment Assets: 878.1 JPY Bn✓✓ Profits up sharply on sale of logistics centers

YTD +6.0 JPY Bn (+1%)

Assets flat on ongoing new development and sale of logistics centers✓ DAIKYO profits doubled YoY, on strong new condo sales, resale, andproperty management business✓ Facilities operations losses shrank as occupancy improved YoY
Segment Assets・ROA

Segment Profits
H1 Results(JPY Bn)
1,000(JPY Bn)

23.9

8.0%

821.2
7.1%

800

Quarterly
Results

13.4

209.7

872.1

878.1

217.8

225.4

7.0%

9.3

5.0%

12.8
11.0

400

9.2
6.1

3.5

10.4

1.9
2.6

5.6

5.6

7.7

12.1

4.3

5.3

Q3
21.3 H1
22.3 H1
21.3
RE Investment and Facilities Operation

DAIKYO

665.5

599.3

4.0%

652.7
2.1%

2.0%

659.7

673.9

681.0

684.2

684.4

18.3

19.3

20.3

21.3

21.9

1.0%
0

Q4

633.8

3.0%

611.5

5.2

-2.8
Q2

425.5

538.0

200

1.2

-0.7
Q1

5.8

3.7%

654.3

(JPY Bn)

6.0%

600

11.0

4.9

AUM

0.0%
20.3

Q1

22.3

Q2

21.3
22.3 H1
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.

23

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

2500 30.1%

35.0%

70.1

70
30.0%

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

7.7%

15.0%

40
10.0%

5.0%
872.1 30
0.0%

1000

20

500

-5.0%

10

-10.0%
0-15.0%

0
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.
Does not include properties 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.

24

Segment Performance (3) PE Investment and Concession
YoY -2.5 JPY Bn (-57%)

Segment Profits: 1.8 JPY Bn

Segment Assets: 368.8 JPY Bn✓ Private equity: Solid earnings at investees led to profit growth✓

YTD -9.9 JPY Bn (-3%)

Segments assets lower owing to concession business losses✓ Concession: Still in the red on lagging recovery in international flights

Segment Assets・ROA

Segment Profits(JPY Bn)(JPY Bn)

400

H1 Results

4.3

7.7

8.1

4.6
4.6
0.0

-3.4
-6.3

21.3 H1

12.2%

Quarterly
Results

1.8

Q1

-0.3

0.3

3.1

3.5

-3.4

-3.2

Q2

Q3

21.3

322.5

300

-0.7
1.0
-1.7
Q4

0.3

1.6

3.8

4.3

PE Investment

Concession

368.8

14.0%

50.6

43.9

12.0%
10.0%

60.1

8.0%
200

6.0%

328.1

324.9

262.4
-3.5

-2.8

Q1

Q2

22.3

100

4.0%
2.0%

-0.4% 0.0%

0.0%
0

-2.0%
20.3

22.3 H1

378.7

PE Investment

21.3
Concession

22.3 H1

Segment ROA (annualized and after-tax)

Copyright © 2021 ORIX Corporation All rights reserved.

25

PE Investment and Concession✓ Currently invested in 17 companies (as of end-Sept 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.

26

Segment Performance (4) Environment and Energy
YoY -3.9 JPY Bn (-29％)

Segment Profits: 9.7 JPY Bn

Segment Assets: 695.4 JPY Bn✓ Segment profits higher, excluding valuation gains booked in FY21.3 Q1✓✓ Greenko began contributing to earnings from Q2

Assets higher with completed Elawan acquisition(Profits contributions slated to begin from Q3)

Renewable Energy Operating

Segment Assets・ROA

Segment Profits(JPY Bn)YTD +206.3 JPY Bn (+42%)

Capacity Outlook*(JPY Bn)*Reflects capacity proportionate to
ORIX equity stake

H1 Results
700

695.4

600

Quarterly
Results

8GW

4.1%

500
400

489.2

464.3

3GW
2.2%

300

1.8%
200

13.6
9.7

7.7

10.5
5.9

3.5

4.5

5.2

Q1
22.3

Q2

100
0

21.3 H1

22.3 H1

Q1

Q2
21.3

Environment and Energy

Q3

Q4

20.3
Environment and Energy

21.3

22.3 H1

Segment ROA (annualized and after-tax)

21.9

Domestic (in operation)

26.3 (Forecast)

Overseas (in operation)

Copyright © 2021 ORIX Corporation All rights reserved.

27

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: 840 MW

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

USA & other locations

China

Japan

・Beijing Energy (4.8% stake)Solar, hydro assets
Capacity: 2,880 MW

Solar Capacity: 930 MW*1
Wind, geothermal, biomass
Capacity: 10 MW・Ormat Technologies (19.6% stake)
Geothermal capacity: 1,310 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 Includes assets ORIX took ownership as of 9/30/21 which began operating on 10/1/21. Solar business in Japan has
cumulatively sold more than 1.0 GW in panels, in addition 930 MW of owned 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.

28

Segment Performance (5) Insurance
YoY -2.3 JPY Bn (-7%)

Segment Profits: 33.0 JPY Bn

Segment Assets: 1,963.0 JPY Bn✓ ORIX Life: Profits up on growth in premium income, higher income fromYTD +3.4 JPY Bn (flat)✓ Assets mostly flat vs. end-FY21.3

growth in assets✓ Segment profits lower YoY on absence of FY21.3 Q1 reversal of liability

reserve of former Hartford Life Insurance*
Segment Profits(JPY Bn)

Number of ORIX Life Insurance

Segment Assets・ROA

Policies in Force(JPY Bn)

H1 Results(Millions)

2,000

4.90

35.3

33.0

1,963.0

Quarterly
Results

4.9

1,500

4.79

4.80

1,959.5

4.68

4.70

1,580.2

4.60

30.4

33.5

4.3
13.9

0.6

16.5

22.3 H1

4.6

14.7

1.4

Life Insurance

Q2

21.3

Q3

Q4

2.3%

2.4% 4.50
4.40

0.2
16.2

4.39

4.20

17.3

-0.8
Q1

4.53

4.30
500

4.10

3.2
Q1

2.3%

15.5 17.5

1.5

-0.5
21.3 H1

1,000

18.3 17.1
16.2

4.84

4.00

0

Q2

20.3
Life Insurance

21.3
22.3 H1
Segment ROA (annualized and after-tax)

19.9

20.3

20.9

21.3

21.9

22.3

ex-Hartford Life Insurance*Hartford Life Insurance was acquired by ORIX Life in 2014, with the merger completed in 2015.

Copyright © 2021 ORIX Corporation All rights reserved.

29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.

30

Segment Performance (6) Banking and Credit
YoY -3.1 JPY Bn (-12%)

Segment Profits: 22.1 JPY Bn

Segment Assets: 2,710.0 JPY Bn✓ Banking: Profits higher on increase in assets

YTD +19.4 JPY Bn (+1%)✓ Banking: New financing execution for renewable energy, other projects

led to increase in assets✓ Credit: Profits fell YoY due to absence of reversals of provisions for losses

vs. FY21.3 H1Segment Profits(JPY Bn)

H1 Results(JPY Bn)
3,000

25.2

2,603.7

22.1
12.0

8.0

2,000

5.6

21.3 H1

2,500

Quarterly
Results

11.9

13.1

Gross Margin and Yield*

Segment Assets・ROA

13.3

13.2
11.5
4.4

6.4

2,710.0

177.9

186.5

(as of end-Mar 2021)

ORIX Bank (Parent)
2,523.5

2,512.7

2,421.5

12.8

Investment yield

1.99%

Funding yield

0.18%

Gross margin ofcapital

1.81%

1,500

9.3

4.1
4.5

1.3%

1.1%

1.1%

3.9 1,000

14.1

22.3 H1

182.2

2,690.6

6.3

6.9

Q1

Q2

Banking

8.9

21.3

Credit

Q3

7.0

Q4

8.7

Q1

22.3

5.4

500

Q2

0
20.3
Banking

21.3
Credit22.3 1H

Segment ROA (annualized and after-tax)*ORIX Bank's financial results disclosure materials (JGAAP)
Investment Yield= Interest on investment accounts (mostly interest on
loans)/Average outstanding balance
Funding Yield= Interest on interest-bearing liabilities/Average outstandingbalance
Gross Margin of Capital =Investment Yield - Funding Yield

Copyright © 2021 ORIX Corporation All rights reserved.

31

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
FY21.3 Loan to Deposit Ratio

FY21.3 Expense Ratio
(％)

(％)

100

100

80

80

60

60

40

37.5%

20

0

0
ORIX Bank

96.7%

40

20

Megabanks
Avg.

RBAJ Avg.

SARB Avg.

FY21.3 ROE/ROA*1

ORIX Bank

Megabanks
Avg.

RBAJ Avg.

SARB Avg.

ROE

ROA

ORIX Bank

9.3%

0.7%

Megabanks Avg.

5.8%

0.2%

RBAJ Avg.*2

3.3%

0.1%

SARB Avg.*3

2.2%

0.1%

*1 Japanese Bankers Association. Compiled by ORIX from FY2020
Financial Statements of All Banks report.
*2 Regional Bank Association of Japan average*3 Second Association of Regional Banks average

Copyright © 2021 ORIX Corporation All rights reserved.

32

Segment Performance (7) Aircraft and Ships
YoY -4.9 JPY Bn (-89%)

Segment Profits: 0.6 JPY Bn

Segment Assets: 615.6 JPY Bn

YTD +13.9 JPY Bn (+2％)✓ Avolon returned to the black in Q2, but profits still down YoY✓ Aircraft: Assets down owing to sale & depreciation✓ Ships business profits up on strong marine shipping market✓ Ships: Assets increased with new loan executions

Segment Profits

Aircraft leasing business(as of end-Sept 2021)

ORIX

AvolonBusinesshistory

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

11 years(Established in 2010)

Businessmodel• Mainly trading in secondhand market• Strengths include
arrangement of aircraft
purchases to third parties
and asset management
services

Segment Assets・ROA(JPY Bn)(JPY Bn)
800

8.0%

H1 Results

7.0%

6.7%

6.0%

600

5.0%
615.6

400

5.5
3.6
1.9

0.6
5.1
-4.5

585.3
2.0%

7.6
6.3

1.3

3.0%

601.8

Quarterly
Results
200

5.4

-2.1

-1.2

1.0

0.7

0.9
-2.1

1.3

-2.7

-0.3

-4.8
1.8
-6.7

21.3 H1 22.3 H1
Aircraft and Ships (exc. Avolon)

4.0%

Avolon

2.2
3.3

0.8%

1.0%
-0.1% 0.0%

0

-1.0%
20.3

21.3
22.3 H1
Aircraft and Ships
Segment ROA (annualized and after-tax)

ORIX
ownership

100%

RatingS&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.

33

Aircraft Leasing Business
GLOBALLY
DIVERSE
（NBV）

ORIX

NARROWBODYWEIGHTING（number of aircraft）

OEM
BREAKDOWN（number of aircraft）

16%

14%

Owned
fleet
68

Committed
fleet
0

Average age
6.5 years

33%
43%
57%

84%

53%
APAC
Americas
EMEA

Narrowbody

AirbusWidebody

BoeingAvolonRemaininglease term
6.3 years

Managed fleet
154

Owned
fleet
526

Committed
fleet
245

21%
31%

33%

Average age
5.7 years

46%

69%
21%

APAC
Americas
EMEA

79%
Narrowbody
Widebody

Planned aircraft deliveries
fully placed through theend of March 2023

Remaininglease term
6.7 years

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

34

Segment Performance (8) ORIX USA
YoY +37.7 JPY Bn (+381%)

Segment Profits : 47.6 JPY Bn

YTD -31.6 JPY Bn (-3％)

Segment Assets : 1,188.4 JPY Bn✓ Profits up sharply on investment gains from multiple PE exits, including RoadSafe Traffic✓ Assets down vs. end-FY21.3 on ongoing caution about credit deals

Systems, US’s largest provider of traffic control and pavement marking systems✓ Real estate (Lument*), credit and other asset management businesses also recorded

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

Segment Profits(JPY Bn)

AUM / AUA

Segment Assets・ROA(JPY Bn)(USD Bn)

1,500

H1 Results

6.3%
1,200

1,374.0

54.8

1,220.1

Quarterly
Results

48.3

1,188.4

900
3.2%
600

47.6

21.3 H1-0.6

22.3 H1

78.1

6.0
7.6

5.6
15.5

7.2

5.3
7.4

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

73.3
5
15.2

43.8
47.2

48.2

2.5%
25.2

9.9

76.5

Q1

10.5

15.2

22.5

300

15.2

0
Q2
Q3
21.3

ORIX USA

Q4

Q1
Q2
22.3

20.3
ORIX USA21.3

RB Capital

22.3 H1

Segment ROA (annualized and after-tax)

SPCM*1

Lument*2

4.3
0.7
21.9
BFIM*3NXT*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.

35

ORIX USA
✓ Focused on serving middle market clients across three verticals: Credit, Real Estate, Private Equity
Aim to achieve further growth in asset management business in all three verticals (total AUM / AUA $73.3 Bn)✓ Operates hybrid strategy, investing own principal capital while providing asset management, capital market solutions toexternal investors(As of end-Sept 2021)
CreditReal Estate

Private Equity

Segment Assets: $6.3 Bn

Segment Assets: $3.1 Bn

Segment Assets: $0.9 Bn

NXT Capital

Lument

ORIX Capital Partners✓ $7.3 Bn in financing to U.S. middle market✓ Merged three real-estate subsidiaries into new✓ PE investor focused on middle market, avg. $75-

companies (primarily senior secured loans)brand

250 Mn deal size, also utilizes third-party✓ #1 Federal Housing Authority (FHA) loan

ORIX Municipals & Infrastructure✓ Invests in $1.1 Bn high-yield bond portfolio(municipal, infrastructure bonds)

Signal Peak Capital Management✓ Manages $5.3 Bn in syndicated loans,capital✓ Investees include infrastructure, IT services,originator*2

digital marketing, factory automation

Boston Financial Investment Mgmt
✓ Largest LIHTC (low-income housing tax credit) *3

ORIX Private Equity Solutions

syndicator in US✓ Acquired assets of leading LIHTC asset manager
Boston Capital in Dec 2020

✓ 18 deals in 5 years✓ 47 platform deals in 9 years✓ Avg. size $10-20 Mn

structured credit (CLOs)*1 US federal institution insuring mortgages. *2 Mortgage Bankers Association’s 2020 CRE Originations Rankings.
*3 US federal tax credit program designed to promote supply of affordable housing, a market resilient to economic trends.
Copyright © 2021 ORIX Corporation All rights reserved.

36

Segment Performance (9) ORIX Europe
YoY +11.5 JPY Bn (+67%)

Segment Profits: 28.6 JPY Bn

Segment Assets: 397.1 JPY Bn✓ AUM hit new record level

YTD +27.5 JPY Bn (+7%)✓ Assets up vs. end-FY22.3 on increase in investment in securities✓ Robeco, a leader in ESG investing, successfully increased sustainability-

related AuM, contributing to growth in fee revenue

Segment Profits

AUM

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

H1 Results
400.0

12.0%
11.2%
10.2%

Quarterly
Results

10.0%

300.0

8.6%

200.0

28.6

369.5

8.0%
397.1

6.0%

289

317.8

7.2

9.9

10.0

Q2

Q3
21.3

12.4

13.5

Q4

Q1

15.1 100.0
2.0%
0.0

21.3 H1

22.3 H1

Q1

328

233

4.0%

17.1

307

295

Q2
22.3

20.3
ORIX Europe

0.0%
21.3
22.3 H1
Segment ROA (annualized and after-tax)

18.3

19.3

20.3

21.3

21.9

ORIX Europe

Copyright © 2021 ORIX Corporation All rights reserved.

37

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 30 June 2021）

200 EU Bn
ESG-Integrated AUM

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

Copyright © 2021 ORIX Corporation All rights reserved.

38

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 end-Sept 2021):

AUM

OCU (ORIX Corporation USA)42.6 JPY Tn

AUM / AUA

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

8.2 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 1.41 mn-Managed aircraft fleet 154-Managed power plants 86 sites / 436 MW**ORIX Renewable Energy Management (OREM) established in 2018

AUM of OCE and OCU were converted at theexchange rate as of end-Sept 2021

Copyright © 2021 ORIX Corporation All rights reserved.

39

Segment Performance (10) Asia & Australia
YoY +16.7 JPY Bn（+440%）

Segment Profits : 20.5 JPY Bn

Segment Assets : 1,125.4 JPY Bn✓ Profits up sharply on increase in leasing in South Korea, China

YTD +41.2 JPY Bn（+4％）✓ Assets rose substantially on new execution, including auto leasing inSouth Korea and leasing to manufacturers in China✓ Auto leasing in Australia solid✓ Profit contributions from investees rose

Segment Profits(JPY Bn)

Segment Assets by Region

Segment Assets・ROA(JPY Bn)

H1 Results

1,200.0

3.1%
2.8%
2.6%

Quarterly
Results

900.0

1,125.4
1,084.2

1.6%

6%

600.0

20.5

6%
0.6%

11.7 300.0

0.1%

5.9

0.0
-3.1

21.3 H1

22.3 H1

Q1

Q2

Q3

Q4

Q1

22.3

Q2

12%

-0.4%
20.3

21.3

22%

9%

8.8
3.5

FY22.3 H1

1.1%

0.9%

0.9%

3.8

24%

2.1%

6%

1,010.3

6.9

15%

Asia and Australia

21.3

22.3 H1

Segment ROA (annualized and after-tax)

Korea
Indonesia

China
Malaysia

Hong Kong
TaiwanAustralia
OthersAsia and Australia

Copyright © 2021 ORIX Corporation All rights reserved.

40

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%

7.0%

7.1%

7.1%

7.5%

600.0

7.0%

550.0

6.5%

500.0

6.0%

609.6

450.0
400.0

546.0

635.6

626.9

5.5%

555.5
5.0%

35%
Operating leases

350.0

4.5%

NET

300.0

4.0%

Q2

Q3

Q4

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

Q1

Q2
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.

41

Appendix

Copyright © 2021 ORIX Corporation All rights reserved.

42

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.

43

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.

44

About ORIX

Global Network✓ Using its expertise cultivated in Japan, ORIX has expanded its business globally, with operations in 28
countries and regions worldwide

Copyright © 2021 ORIX Corporation All rights reserved.

45

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

PE investment and concession

Environment and Energy

Domestic and overseas renewable energy; electric power retailing; ESCO services;
sales of solar panels and electricity storage systems; 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

22%

12%

Segment Profits
240.1 JPY Bn
20%

10%

FY22.3 H1
4%

0%

9%

1%

14%

FY22.3 EBITDA 715.1 JPY Bn
10%
4%

14%

10%
5%

8%

Segment Assets
11.6 JPY Tn

3%
6%

FY22.3 H1
23%

Copyright © 2021 ORIX Corporation All rights reserved.

17%

46

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 P48 for a breakdown of each category

Copyright © 2021 ORIX Corporation All rights reserved.

47

Three Portfolio Categories (Breakdown of Financing, Asset Management and Insurance,
Operation and Investment Categories on P47)
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 Estate

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

ORIX USA

Asset management, loans,
fixed-income investment

ORIX Europe

Asset management

Asia and Australia

Leasing, loans

AircraftPE investment

PE investment

Minor COVID-19 impact

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

48

COVID Impact on Segment Profits✓

COVID impact bottoming out, and profits in three heavily impacted segments* have capacity to recover to pre-pandemic levels✓

Growth in Operation & Investments, Asset Management & Insurance have pushed profits in other segments above pre-pandemic

levelsSegment profits
(JPY
Bn)
300
250

(JPY Bn)

Financing

Asset Management & Insurance

Operation & Investments

Major COVID-19 impact
240.1

246.3
34.9

205.1

200

175.5

35.2

Total for non-major
COVID-19 impacted
segments

156.8

150

251.0
100

2,114

211.4
1,699

169.9

1,633

163.3

1,871

187.1

50
0
(50)

2020.3
H1

2020.3
H2

-6.5

-11.6

-10.9

2021.3H1

2021.3H22022.3
H1*Profits for three segments heavily impacted by COVID are the sum of following (1)-(3): (differ from p. 48 breakdown, trends for each business are outlined on p. 50)(1) Real estate segment: Investment & operations unit profits excluding investment gains from segment(2) Aircraft & ships segment profits(3) PE & concession segment: Concession unit profits

Copyright © 2021 ORIX Corporation All rights reserved.

49

COVID Impact on Segment Profits
Segment Profits of Three Heavily Affected Segments(JPY Bn)

FY20.3
H1

Concession
Total

H2

H1

FY22.3
H2

H1

Vs. FY20.3 Vs. FY21.3
H1
H1

7.4

- 1.7

- 8.6

- 6.4

- 5.2

- 12.6

3.4

16.4
11.1
34.9

28.5
8.5
35.2

5.5
- 3.4
- 6.5

- 0.2
- 5.0
- 11.60.6- 6.3- 10.9- 15.8- 17.4- 45.8

- 4.9
- 2.9
- 4.4

Real Estate (facilities operations)*

Aircraft and Ships

FY21.3*Real estate segment: Investment & operations unit profits excluding investment gains from segment

FY22.3 H1 Business Trends•

Real Estate (facilities operations): State of emergency continued through end of September, resulting in sharply lower profits vs. FY20.3 H1, but
occupancy rates at hotels and inns improving•

Aircraft and Ships: Segment profits still down YoY, but Avolon returned to the black in 2Q after recognizing some lease payments from bankrupt
airlines as revenue•

Concession: Still posting significant losses as mainstay international flights have yet to recover (Kansai Airports’ international passenger traffic
down 99% in FY22.3 1H vs. FY20.3 1H)
Copyright © 2021 ORIX Corporation All rights reserved.

50

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.

51

Financials (1) Funding Structure / Employed Capital Ratio✓

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

Funding structure andTrends in Long-term Debt Ratio*(JPY Tn)

Shareholder’s Equity /Employed Capital Ratio*Excluding deposits

8

100%

(JPY Bn)

3,000.0

7
80%

6
5

60%

4
40%

3

2,500.0

100%
88%

85%

91%
85%

88%

2,000.080%

1,500.0
2,682.4

2,897.1

2,993.6

3,028.5

3,117.7

1,000.0

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

21.9

Capital markets（Long-Term）
Deposits

60%

500.0
0.0

40%
18.3

19.3
20.3
Shareholders’ Equity

21.3
21.9
Employed Capital Ratio

Copyright © 2021 ORIX Corporation All rights reserved.

52

Financials (2) Liquidity / Credit Ratings✓ S&P raised outlook from Negative to Stable in August 2021; S&P, Moody’s, Fitch, R&I ratings of A or

higher all maintained✓ 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（as of end-Sept 2021）

Credit Ratings

S&P

Liquidity (JPY Bn)

D/E Ratio (times)

1,500

3.0

1,200

1,122.0

1,097.9

900

1.6

1.6

A-（Stable）

Moody’sA3（Negative）

Fitch

A-（Negative）

R&I

Liquidity*・D/E Ratio

AA-（Stable）

1,151.5
1.6

1,080.3

1,073.7

1.6

1.6
1.5

600

300

0

0.0

2020.92020.122021.3

Cash and Cash Equivalents (Left axis)

2021.62021.9Available Commitment Lines (Left axis)

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

Copyright © 2021 ORIX Corporation All rights reserved.

53

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
32%
As of end-Sept
2021

ABS, CMBS
2%
Overseas
Bonds
Domestic CP
7%
Bonds 2%
8%

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

21.9

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

54

Shareholder Return✓ Full-year dividend per share: FY22.3 78 JPY (H1 dividend of 39 JPY)
✓ Buyback program: FY22.3 50 JPY Bn planned (38.4 JPY Bn executed as of end-Oct 2021)

Dividend per Share and Payout Ratio

Share Buyback and Total Return Ratio（JPY）

Interim Dividend

Year-End Dividend

Payout Ratio

Total dividend

Buyback (actual)

Buyback (forecast)

Total return ratio

78%

160.0
100.0

30%

90.0
80.0
70.0

25%

40.0

50%
50%
30%

39

41

43

39

29.25

-10%

23

27

30

35

35

39

80.0

19.3

20.3

21.3

54.3

50.0

22.3
(Forecast)

40%
20%

10.9

-20%

60.0

-30%
-50%

18.3

45.7

68.3

84.6

97.4

96.4

-40%

96.1

-60%

20.0

0.0

17.3

30%

60%

39.1

100.0

40.0

20.0

29%

40%

80%

0%
10%

30.0

10.0

140.0
120.0

46

57% *

47%

27%

60.0

50.0

32%

（JPY Bn）

-80%

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.

55

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 © 2021 ORIX Corporation All rights reserved.

56

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

57

Company Name
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