Second Quarter Consolidated Financial Results. October 31, 2013

Transcription

1 ORIX Corporation (TSE: 8591; NYSE: IX) Conference Call Second Quarter Consolidated Financial Results For the Six Month Period Ended April 1 September 3, 213 October 31, 213 Haruyuki Urata Shintaro Agata Takao Kato Deputy President & CFO Corporate Executive Vice President, Head of the Treasury Headquarters Corporate Senior Vice President, Head of the Accounting Headquarters Copyright 213 ORIX Corporation All rights reserved.

2 Performance: Overview Achieved 8.4bn in Net Income, up 34% YoY Net Income target revised upward from 135bn to 145bn 15 Net Income* and ROE 9.5% % 6.2% 7.4% (Target) *Net Income refers to Net Income Attributable to ORIX Corporation Shareholders Copyright 213 ORIX Corporation All rights reserved. 1

3 Performance: Segment Profits and Assets Increased profits in 5 segments by steadily and nimbly capturing changes in the environment % 1.1% Segment Profits 2.4% 1.9% 1.5% Corporate Financial Services Maintenance Leasing Real Estate 7, 6, 5, Segment Assets 8 6 Investment and Operation Retail 4, 3 3, 4 Overseas Business 2, H H H H Segment Assets ROA 1, (After Tax) * Goodwill and other intangible assets acquired in the business combination have been recognized as segment assets. Previous period presented have been reclassified due to this change Copyright 213 ORIX Corporation All rights reserved. 2

4 Performance: Service Related Revenues Significant increase of service related revenues driven by Robeco acquisition and progress in Finance + Services Service Related Revenues/ Percentage within Base Revenues 7% 6% 5% 4% Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business 3% H H H H Percentage within Base Revenues* * Base Revenues = Base profit before deduction of SGA - Interest related revenues: Includes direct finance leases, interest on loans and investment securities, equity in net income (loss) of affiliates, etc. - Service related revenues: Includes operating leases, life insurance premiums, other operating revenues, etc. (corresponding expenses have been deducted) - Interest expense is divided according to the proportion of interest related assets and service related assets and deducted from both revenues Copyright 213 ORIX Corporation All rights reserved. 3

5 Performance: Segment Profits Corporate Financial Services Base Profits Segment Profits Maintain 9bn in assets, expect fee income to expand in the second half 1, Segment Assets ROA (After Tax) 1.6% 1.5% Service related revenues Interest related revenues 54% 46% H H Maintenance Leasing H H H Achieved increased assets while maintaining profitability 25 2 Base Profits Segment Profits 8 Segment Assets 4.% ROA (After Tax) 4.2% Service related revenues Interest related revenues % H H H H 88% H Copyright 213 ORIX Corporation All rights reserved. 4

6 Performance: Segment Profits Real Estate 1tn in assets within range, achieved 1% ROA 2 15 Base Profits Segment Profits 15 1,5 1, Segment Assets ROA (After Tax) 1.% Service related revenues Interest est related revenues en es 13% % 87% H H Investment and Operation Base Profits Segment Profits H H H H Recognized larger profits than last FY that had large collection revenues, steady investments Segment Assets ROA (After Tax) Service related revenues 6.2% Interest related revenues 4.5% H H 52% 48% H H Copyright 213 ORIX Corporation All rights reserved. 5

7 Performance: Segment Profits Retail Base Profits Segment Profits Reached 2tn in assets, strong launch of new life insurance product 2,5 2, 1,5 Segment Assets 1.6% ROA (After Tax) 1.7% Service related revenues Interest related revenues 39% 1 5 1, 61% H H Overseas Business H H H Completed Robeco acquisition, local Asian subsidiaries continues to show strong performance 4 Segment Assets ROA (After Tax) Base Profits Segment Profits 3 2 2, 1,6 1,2 2.6% 2.8% Service related revenues Interest related revenues 23% H H H H 77% H Copyright 213 ORIX Corporation All rights reserved. 6

8 Performance: Robeco AUM is stable even after acquisition announcement, steady fee revenues Asset Under Management ( bn) Net New Money Institutional AUM Retail AUM Net Fee Revenues ( mm) Copyright 213 ORIX Corporation All rights reserved. 7

9 Strategy: Towards 1% ROE 15 Net Income and ROE 9.5% % 6.2% 7.4% Frist Half 14.3 (Target) *Net Income refers to Net Income Attributable to ORIX Corporation Shareholders Copyright 213 ORIX Corporation All rights reserved. 8

10 Strategy: Towards 1% ROE Segment Asset ROA: 1.9% in 1H FY % in 1H FY14.3 Make the next move towards 2.5% ROA ROA(After Tax) Change in Segment Profits, Assets and ROA 8% Investment and Operation FY14.3 6% 4% Maintenance Leasing Overseas Business FY13.3 Diameter of the circle represents profit size Center of the circle represents ROA, Assets 2% Corporate Financial Real Estate Services Retail % 2 7 1,2 1,7 2,2 Segment Assets -2% Copyright 213 ORIX Corporation All rights reserved. 9

11 Strategy: Status of Shareholders Equity Ratio of employed capital close to 8% after Robeco acquisition Capital deployment status change in conjunction with portfolio turnover Employed Capital Ratio and ROE Breakdown of Deployed Capital 2, 1,5 1, 5 5.1% 6.2% 74% 7.4% 9.5% 1.% Corporate Financial Services/ 9.% Maintenance Leasing/ 8.% Retail 7.% 21% 6.% 5.% H Robeco 4.% 17% 3.% Investment and 2% 2.% Operation 1.% 1% Overseas (excl. Robeco) 3% Real Estate 22% H.% Capital lemployed Capital lreserve ROE Copyright 213 ORIX Corporation All rights reserved. 1

12 Strategy: Environment and Energy Business Solar panel sales expected to drive profit until FY15.3 Dramatic increase in assets driven by mega-solar operations and expansion of investment Environment and Energy Business Asset Balance (MW) Scale of Each Business* Solar Panel Sales Geothermal/Wind Power, etc. Roof-top Power Generation Mega Solar Projects Plan 16.3 Plan 17.3 Plan Forecast Forecast 15.3 Plan 16.3 Plan 17.3 Plan *Amounts of Mega-solar projects and rooftop power generation are calculated based on maximum cumulative volume for projects that have begun operation Copyright 213 ORIX Corporation All rights reserved. 11

13 Strategy: Environment and Energy Business Capture wide-range of opportunities from energy to environmental field Copyright 213 ORIX Corporation All rights reserved. 12

14 Strategy: Summary Achieved 8.4bn in Net Income, 9.5% ROE (annualized basis) Net Income target revised upward to 145bn Aim for 1% ROE by improving ROA Copyright 213 ORIX Corporation All rights reserved. 13

15 Appendix Copyright 213 ORIX Corporation All rights reserved. 14

16 About ORIX Sustainable Growth Continuous profitability for 48 years, achieving sustainable growth 2, 2 Net Income Attributable to ORIX Corporation FY29.3 Collapse of Lehman Brothers FY bn (Target) 1,5 15 FY22.3 Bursting of the IT Bubble 1, 1 FY Asian Currency Crisis FY bn 5 FY Bursting of the Economic Bubble Copyright 213 ORIX Corporation All rights reserved. 15

17 About ORIX Business expertise and Group-wide capability ORIX evolved by moving into neighboring areas while increasing its finance and asset expertise Credit Screening and Finance Capability Leasing Tangible Asset Expertise Lending Corporate finance Housing loans Card loan Life Insurance Banking Loan servicing Non-performing loan investment Investment Principal investment Business rehabilitation support Bond investment Venture capital Leasing Servicer Ships/Aircraft Machinery and equipment leasing Automobile leasing Leasing and rental of precision measuring and IT-related equipment Ship/Aircraft Leasing Real Estate Development and rental Facilities operation Asset management Investment and advisory Asset management Ship/Aircraft investment Automobiles Car rental Maintenance services Vehicle management Car sharing Asset Management Investment Banking M&A advisory Environment/Energy Waste disposal and recycling Energy conservation Renewable power Electric business Storage batteries Copyright 213 ORIX Corporation All rights reserved. 16

18 About ORIX Expansive Domestic and Overseas Network Expanded its global reach starting with Hong Kong in 1971, using knowhow developed in Japan Not as ambitious as to call it a globalization, but rather it is a way of eliminating barriers that exist in Japan 34 Countries and Regions Overseas (As of ) B usiness Netw work Developmen nt 1971 Hong Kong 1972 Singapore 1973 Malaysia 1975 Indonesia 1977 Philippines 1978 Thailand 198 Sri Lanka 1986 Pakistan, Australia 1988 New Zealand 1991 Taiwan, Ireland 1993 India 1994 Oman 1995 Poland 1997 Egypt 21 Saudi Arabia, South Korea 22 United Arab Emirates 24 China 25 Kazakhstan 21 Vietnam 213 Bahrain, Netherlands Mongolia Asia, Oceania, and Europe Japan 1981 Established ORIX USA 1997 Launched Commercial Mortgage-Backed Securities (CMBS) servicing business 26 Acquired investment bank (Houlihan Lokey) 21 Acquired loan servicing business (RED Capital) 21 Acquired fund management company (Mariner Investment) 212 Established Brazilian Subsidiary North America and South America Copyright 213 ORIX Corporation All rights reserved. 17

19 Appendix(1) Trend in Performance Total Revenue , Net Income * Segment Assets 6, , , ,748.8 Total lassets 8, , , ,43. Shareholders' Equity 1,38.7 1, ,416. 1,759.6 Shareholders' Equity Ratio *2 18.8% 21.4% 19.2% 21.9% D/E Ratio *2 2.8x 2.3x 2.6x 2.1x *1 Net Income Attributable to ORIX Corporation Shareholders *2 Performance indicators shown are Non-GAAP financial measures. For a qualitative reconciliation of the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, please see page 33 and 34. Copyright 213 ORIX Corporation All rights reserved. 18

20 Appendix(2) Profit by Segment Change Corporate Financial Services % Maintenance Leasing % Real Estate % Investment and Operation % Retail % Overseas Business % Total Segment Profit % The Company evaluates the performance of segments based on income before income taxes and discontinued operations, adjusted for results of discontinued operations, net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests before applicable tax effect. Copyright 213 ORIX Corporation All rights reserved. 19

21 Appendix(3) Assets by Segment & Region Corporate Financial Services Maintenance Leasing Real Estate 1,39.5 1, ,45.5 Investment and Operation Retail , , , Overseas Business 1,81.2 1, ,682.6 Total Segment Assets 6, , ,748.8 Overseas Business Segment Assets by Region By Region America Asia / Australia Greater China Middle East / Europe Robeco Other Total 1,81.2 1, ,682.6 *From the second consolidated fiscal period, goodwill and other intangible assets acquired in business combinations have been included in segment assets. As a result of the foregoing, we have reclassified the segment information for the previous consolidated periods Copyright 213 ORIX Corporation All rights reserved. 2

22 Appendix(4) Segment Performance 1. Corporate Financial Services Change Base Profits % Capital Gains Provisions Impairments Segment Profits % Segment Assets ROA (After Tax) 1.4% 1.7% 1.6% 1.5% - Performance Asset increased compared to end of previous fiscal year Recognized write-back of provisions 2Q Topics Supply shortage of solar panels resolved Completed integration of sales branches with ORIX Auto Copyright 213 ORIX Corporation All rights reserved. 21

23 Appendix(4) Segment Performance 2. Maintenance Leasing Change Base Profits % Capital Gains Provisions Impairments Segment Profits % Segment Assets ROA (After Tax) 3.9% 3.9% 4.% 4.2% - Performance Continued strong new transactions Base profits remain at high levels due to asset increase 2Q Topics Opened new truck rental location in Fukuoka City. Set to open locations in Iwaki, Sapporo and Osaka. Began offering contract testing service of compact storage batteries Copyright 213 ORIX Corporation All rights reserved. 22

24 Appendix(4) Segment Performance 3. Real Estate Change Base Profits % Capital Gains Provisions Impairments Segment Profits % Segment Assets 1,39.5 1, ,291. 1, ROA (After Tax).1%.3%.3% 1.% - Performance Increased gains on sales of properties and decreased impairments in the process of real estate t market recovery Hotel and Japanese Inn operations continue to be strong 2Q Topics Rented abandoned school to establish an artificial light plant factory to cultivate leaf lettuce Acquired Asanomiya Golf course. Total of 41 golf courses now operated by ORIX Copyright 213 ORIX Corporation All rights reserved. 23

25 Appendix(4) Segment Performance 4. Investment and Operation Change Base Profits % Capital Gains Provisions Impairments Segment Profits % Segment Assets ROA (After Tax) 1.9% 4.7% 4.5% 6.2% - Performance Contributions from profits from new investments and gains on sales of listed stocks Strong collections revenues and fee income from loan servicing business 2Q Topics Acquired U.S. energy services company Enovity Securing land for Mega-solar projects proceeding as planned Copyright 213 ORIX Corporation All rights reserved. 24

26 Appendix(4) Segment Performance 5. Retail Change Base Profits % Capital Gains Provisions Impairments Segment Profits % Segment Assets 1, , ,966. 2, ROA (After Tax).7% 1.4% 1.6% 1.7% - Performance Growth in base profits in line with increased life insurance policies in force Growth in ORIX Bank housing loans contributed to asset increase 2Q Topics Number of applications for medical insurance New Cure and New Cure Lady exceeded 4, in single month 3 rd e-direct money trust went on sale Copyright 213 ORIX Corporation All rights reserved. 25

27 Appendix(4) Segment Performance 6. Overseas Business Change Base Profits % Capital Gains Provisions Impairments Segment Profits % Segment Assets 1,81.2 1, ,64.2 1, ROA (After Tax) 2.7% 2.7% 2.6% 2.8% - Performance Increased base profits due to acquisition of Robeco Local subsidiaries non-performing ratio and provisions remained low 2Q Topics Indonesian local subsidiary chosen as best financial company from 168 competitors Copyright 213 ORIX Corporation All rights reserved. 26

28 Appendix(5) Funding and Liquidity CP Borrowings from Financial i linstitutions 2, ,368. 2, Bonds / MTN 1,393. 1,283. 1,2.8 Deposits 1,13.5 1,78.6 1,19.6 Subtotal 4, , ,868.9 ABS, CMBS Short-term Debt, Long-term Debt and Deposits 5,829. 5,56.8 5, Available Commitment Line (1) Cash and Cash Equivalents (2) Liquidity (1+2) 1, , ,135.7 Marketable Short-term Debt (3) * Liquidity Coverage Ratio (1+2)/(3) 289% 295% 314% Share of Long-Term Debt (excl. ABS, CMBS) *2 88% 89% 92% *1 Marketable Short-term Debt is the total of bonds and MTN expected to reach maturity within 1 year and the balance of CP. *2 Performance indicator dcato is a Non-GAAP financial a measure. e For a qualitative reconciliation c o of the most directly comparable ab financial a measures es calculated cu ated and presented in accordance with U.S. GAAP, please see page 33 and 34. Copyright 213 ORIX Corporation All rights reserved. 27

29 Appendix(6) Real Estate Portfolio Trend in Real Estate Segment Assets by Type Rental Property Under Lease Under Development Condo Assets NRL / Specified Bonds * 69.9 Operating Facilities Other Total 1,39.5 1, ,45.5 *25.9bn of NRL/specified bonds held by domestic Group companies not included (13.9) NOI Yield and Vacancy Rate Trends Assets Under Lease NOI Yield 5.2% 4.9% 4.9% Vacancy Rate 35% 3.5% 38% 3.8% 36% 3.6% Trend in Amount of Rental Property Sales Amount of Rental Property Sales Copyright 213 ORIX Corporation All rights reserved. 28

30 Appendix(6) Real Estate Portfolio Rental Property Assets by Type (13.9) Property Type Under Lease Under Balance NOI Yield Development Total Office Buildings % Logistics Centers % Commercial Facilities % Rental Condos % Other % Total % Rental Property Assets by Region (13.9) Under Lease Under Development Total Tokyo Kanto (excl. Tokyo) Osaka Kansai (excl. Osaka) Nagoya Sapporo, Sendai, Fukuoka Other Total Copyright 213 ORIX Corporation All rights reserved. 29

31 Appendix(7) Robeco 14.3 First half Segment Profit 4.4 Segment Assets ROA (After Tax) 3.3% * * End of Period AUM (Billions of euro) Net New Money (Billions of euro) NNM as % of BoP AUM 12.3% 4%.4% 1%.1% Institutional AUM (Billions of euro) Retail AUM (Billions of euro) Net Fee Revenues (Millions of euro) * Figures before acquisition and provided as a reference. Copyright 213 ORIX Corporation All rights reserved. 3

32 Appendix(8) Asset Quality Asset Quality (Adjusted **) Investment in Direct Financing Leases Days Past-Due Direct Financing Leases Installment Loans 2,73.2 2, ,96. 9+Days Past-Due Loans Not individually Evaluated for Impairment Loans individually Evaluated for Impairment (a) * Amount expected to be fully collected through collateral (b) Impaired Loans Requiring Valuation Allowance (a)-(b) Amount expected to be collected through collateral (c) Valuation Allowance (a)-(b)-(c) Non-performing ratio *2 9.3% 6.4% 5.7% *1 Of the 145.6bn in loans individually evaluated for impairment, 9.1bn is fully covered by collaterals such as real estate. Including 46.7bn in provisions, 94.% is fully covered *2 (9+ Days Past-Due Direct Financing Leases + 9+ Days Past-Due Loans Not Individually Evaluated for Impairment + Loans Individually Evaluated for Impairment)/(Investment in Direct Financing Leases + Installment Loans) Trend in Provisions and Provisioning Rate (Adjusted **) Provisions for Doubtful Receivable and Probable Loan Losses * Provisions i (Adjusted)/ d)/ (Average Investment tin Direct tfinancing i Leases + Average Investment tin Installment tl Loans) Provisioning Rate*.62%.34%.33% **The above exclude the effects of adopting the accounting standards regarding the consolidation of VIEs. Copyright 213 ORIX Corporation All rights reserved. 31

33 Appendix(9) Reconciliation Table of Non-GAAP Financial Measurement These materials include certain financial measures presented on a basis not in accordance with U.S. GAAP, or non-gaap measures, including total assets and long-term liabilities excluding liabilities in line with securitized transactions (ABS, CMBS), as well as other measures or ratios calculated based thereon, presented on an adjusted basis, which excludes payables under securitized leases, loan receivables and investment in securities and reverses the cumulative effect on retained earnings of applying the accounting standards for the consolidation of VIEs, effective April 1, 21. (1) Our management believes these non-gaap financial measures may provide investors with additional meaningful comparisons between our financial condition as of June 3, 213, as compared to prior periods. Effective April 1, 21, we adopted ASU and ASU , which changed the circumstances under which we are required to consolidate certain VIEs. Our adoption of these accounting standards caused a significant increase in our consolidated assets and liabilities and a decrease in our retained earnings without affecting the net cash flow and economic effects of our investments in such consolidated VIEs. Accordingly, our management believes that providing financial measures that exclude assets and liabilities attributable to consolidated VIEs as a supplement to financial information calculated in accordance with U.S. GAAP enhances the overall picture of our current financial position and enables investors to evaluate our historical financial and business trends without the large balance sheet fluctuation caused by our adoption of these accounting standards. (2) Our management believes that in comparing segment information as of June 3, 213 as compared to prior periods, the provision of the non-gaap financial measure of base profit that excludes capital gains, allowance for doubtful receivables and probable loan losses, and impairments may provide investors with additional meaningful insight regarding segment profit trends. We provide these non-gaap financial measures as supplemental information to our consolidated financial statements prepared in accordance with U.S. GAAP, and they should not be considered in isolation or as a substitute for the most directly comparable U.S. GAAP measures. Reconciliations of these non-gaap financial measures to the most directly comparable financial measures presented in accordance with U.S. GAAP as reflected in our consolidated financial statements for the periods provided, are included in page 33and 34. Copyright 213 ORIX Corporation All rights reserved. 32

34 Appendix(9) Reconciliation Table of Non-GAAP Financial Measurement Key Ratio Total Assets (a) 8, , ,43. Deduct: Payables under Securitized Leases, Loan Receivables and Investment in Securities Adjusted Total Assets (b) 7, , ,69.2 Short-Term Debt Long-Term Debt (c) 4, ,61.5 3,817.5 Deduct: Payables under Securitized Leases, Loan Receivables and Investment in Securities Adjusted Long-Term Debt (d) 3, , ,456.8 Long- and Short-Term Debt (excluding deposit) (e) , , ,12. Adjusted Long- and Short-Term Debt (excluding deposit) (f) 3,85.7 3,82.5 3,759.3 ORIX Corporation Shareholders' Equity (g) 1,38.7 1, ,759.6 Deduct: The Cumulative Effect on Retained Earnings of Applying the Accounting Standards for the Consolidation of VIEs under ASU and ASU Effective April 1, 21 Adjusted ORIX Corporation Shareholders' Equity (h) 1,4. 1,66.2 1,765.4 ORIX Corporation Shareholders' Equity Ratio (g)/(a) 16.6% 19.5% 2.9% Adjusted ORIX Corporation Shareholders' Equity Ratio (h)/(b) 18.8% 21.4% 21.9% D/E Ratio (times) (Long- and Short-Term Debt/ORIX Corporation Shareholders' Equity) (e)/(g) 3.4x 2.7x 2.3x Adjusted D/E Ratio (times) (Adjusted Long- and Short-Term Debt/ORIX Corporation Shareholders' Equity) (f)/(h) 2.8x 2.3x 2.1x Long-Term Debt Ratio (including ABS, CMBS) (c)/(e) 9% 91% 93% Adjusted Long-Term Debt Ratio (excluding ABS, CMBS) (d)/(f) 88% 89% 92% Copyright 213 ORIX Corporation All rights reserved. 33

35 Appendix(9) Reconciliation Table of Non-GAAP Financial Measurement Segment Profit Details Corporate Financial Services Maintenance Leasing Real Estate Investment and Operations Retail Overseas Business Segment Total Consolidated Financial Statement Adjustment Base Profits * Capital Gains * Provisions Impairments * Segment Profits Base Profits * Capital Gains * Provisions Impairments * Segment Profits Base Profits * Capital Gains * Provisions Impairments * Segment Profits Base Profits * Capital Gains * Provisions Impairments * Segment Profits Total *1 Base Profit = Segment Profit Capital Gains Provisions Impairments *2 Brokerage commissions and net gains (losses) on investment securities, real estate sales (net of cost), gains (losses) on sales of real estate under operating leases, gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net, and equivalent amount of real estate joint-venture equity method profit for equity in net income (loss) of affiliates. *3 Impairment losses for write-downs of long-lived assets, write-downs of securities, and equivalent amount of costs of real estate sales and equity in net income (loss) of affiliates. Copyright 213 ORIX Corporation All rights reserved. 34

36 Reference eee Data Copyright 213 ORIX Corporation All rights reserved. 35

37 Macro Economic Indicators National CPI (Ex Fresh Food) (YoY Change) Source: Bloomberg Copyright 213 ORIX Corporation All rights reserved

38 Japanese Corporate Indices Corporate Bankruptcies Tankan Corporate (Quarterly Basis) Diffusion Index Source: Teikoku Databank, Ltd. Source: Bank of Japan Copyright 213 ORIX Corporation All rights reserved. 37

39 Japanese Real Estate Indicators Japan TSE REIT Index Office Rental Rates Source: Tokyo Stock Exchange Source: CBRE Copyright 213 ORIX Corporation All rights reserved

40 Domestic Lease Business Indicators Private Equipment Investment New Car Sales Source: Japan Leasing Association Source: Japan Automotive Leasing Association Copyright 213 ORIX Corporation All rights reserved

41 Other Domestic Indicators Trend in Domestic Supply of Renewable Energy (Primary Energy Supply Basis) Domestic Shipping Amount of Solar Cell Source: Agency for Natural Resources and Energy Source: Japan Photovoltaic Energy Association Copyright 213 ORIX Corporation All rights reserved. 4 4

42 Other Domestic Indicators The number of M&A The number of the new listed companies Source: RECOF Corporation Source: Tokyo Stock Exchange Copyright 213 ORIX Corporation All rights reserved

43 Other Domestic Indicators Retail Life Insurance Consumer Finance Loans Source: Japan Statistics Bureau Source: Japan Financial Services Agency Copyright 213 ORIX Corporation All rights reserved

44 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, express 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. These statements 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 such differences include, but are not limited to, those described under Risk Factors in the Company s most recent annual report on Form 2-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. Some of the financial information in these materials is unaudited. These materials contain non-gaap financial measures, including adjusted long-term and interest-bearing debt, adjusted total assets and adjusted ORIX Corporation shareholders equity, as well as adjusted segment profit and other measures and ratios calculated on the basis thereof. These non-gaap financial measures should not be considered in isolation or as a substitute for the most directly comparable financial measures included in our consolidated financial statements and presented in accordance with U.S. GAAP. Reconciliations of these non-gaap financial measures to the most directly comparable U.S. GAAP measures are included in these materials on pages 33 to 34. 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 such rules, 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 213 ORIX Corporation All rights reserved. 43

45 Additional Information For annual and more historical data please access our website. A list of major disclosure materials is given below. ORIX Website: URL: / / / IR Website: URL: If you would like to be included d on our list for major news announcements, please send your request to the address below. ORIX Corporation Corporate Planning Department World Trade Center Building., 2-4-1, Hamamatsu-cho, Minato-ku, Tokyo , Japan Tl+813 Tel: Fax: haruyasu_yamada@orix.co.jp Copyright 213 ORIX Corporation All rights reserved. 44