Consolidated Financial Results April 1, June 30, 2001

Transcription

1 Consolidated Financial Results April 1, June 30, 2001 August 3, 2001 In preparing its consolidated financial information, ORIX Corporation and its subsidiaries have complied with accounting principles generally accepted in the United States of America, except as modified to account for stock splits in accordance with the usual practice in Japan. U.S. Dollar amounts have been calculated at Yen to $1.00, the approximate exchange rate prevailing at June 30, These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under Risk Factors in the Company s annual report on Form 20-F filed with the Unites States Securities and Exchange Commission. The Company expects that it will be a passive foreign investment company under the U.S. Internal Revenue Code. A U.S. holder of the shares of the Company is therefore subject to special rules of taxation in respect of certain dividend, gain or other income on such shares. Investors should consult their tax advisors with respect to such rules, which are summarized in the Company s annual report. For further Information please contact: Corporation Communications ORIX Corporation Shiba, Minato-ku, Tokyo JAPAN Tel: (03) Fax: (03) leslie_hoy@orix.co.jp

2 Consolidated Financial Results from April 1, 2001 to June 30, 2001 (U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries) Corporate Name: ORIX Corporation Listed Exchanges: Tokyo Stock Exchange (Securities No. 8591) Osaka Securities Exchange Nagoya Stock Exchange New York Stock Exchange (Trading Symbol: IX) Head Office: Tokyo JAPAN Tel: (03) Date Approved by Board of Directors: August 3, Performance Highlights for the Three Months Ended June 30, 2001 and the Year Ended March 31, 2001 (1) Performance Highlights - Operating Results (JPY million)* June 30, 2001 March 31, 2001 Total Revenues 179, ,149 Operating 21,919 57,148 before Taxes 21,049 59,236 June 30, 2001 March 31, 2001 Net 10,442 34,157 Basic Earnings Per Share Diluted Earnings Per Share Equity in Net (Loss) of and Gain (Loss) on Sales of Affiliates was a net loss of JPY 870 million for the three months ended June 30, 2001 and a net gain of JPY 2,088 million for the year ended March 31, The average number of shares was 81,713,005 for the three months ended June 30, 2001 and 81,760,304 for the year ended March 31, Note : Unless otherwise stated, all amounts shown herein are in millions of Japanese yen or millions of U.S. dollars, except for Per Share amounts which are in single yen. (2) Performance Highlights - Financial Position June 30, 2001 March 31, 2001 Total Assets Shareholders' Shareholders' Equity Equity Ratio 5,693, , % 5,591, , % Book Value Per Share 5, , The number of shares (excluding treasury stock) was 81,727,174 as of June 30, 2001 and 81,706,280 as of March 31, Forecasts for the Year Ending March 31, 2002 Fiscal Year March 31, 2002 Total before Net Revenues Taxes 637,000 68,400 40,100 Note: Basic Earnings Per Share is forecasted to be JPY

3 Summary of Consolidated Financial Results 1. Financial Results for the Three Months Ended June 30, 2001 During the first quarter (April 1 to June 30, 2001) of the fiscal year ending March 31, 2002, revenues from direct financing leases were sluggish as a result of our continued focus on profitability over asset growth, but increases in both interest on loans and investment securities, and other operating revenues contributed to total revenues of 179,367 million yen for the quarter. On the expense side, other operating expenses rose in line with the growth of other operating revenues, but the lack of write-downs of long-lived assets and fewer write-downs of securities combined with lower interest expense to produce total expenses of 157,448 million yen. As a result, income before income taxes was 21,049 million yen and net income was 10,442 million yen. In the domestic operations, the corporate finance segment saw a decline in investment in direct financing leases due to ORIX s careful selection of new transactions in a worsening economic environment, but lower interest expenses and strong performance in the automobile leasing business and corporate lending helped the segment obtain income before income taxes of 11,403 million yen. In the equipment operating leases segment, continued solid returns from measuring equipment rentals contributed to pretax profits of 2,655 million yen. In the real estate segment, sales of condominiums were particularly robust in the first quarter and a lack of write-downs of long-lived assets led to pretax profits of 4,587 million yen. The life insurance segment produced income before income taxes of 3,397 million yen thanks to strong returns from related investment income. In the Americas segment in the foreign operations, the commercial mortgage backed-securities business contributed strongly to revenues, but a subsidiary involved in the leasing of transportation and construction equipment incurred restructuring costs, which combined with losses at an affiliate accounted for by the equity method to result in a segment pretax loss of 1,100 million yen. 2. Forecasts For the fiscal year ending March 31, 2002, ORIX maintains its forecasts of revenues of 637 billion yen (up 9% compared with the previous fiscal year), income before income taxes of 68.4 billion yen (up 15%) and net income of 40.1 billion yen (up 17%).

4 Consolidated Financial Highlights (For the Three Months Ended June 30, 2001 and the Year Ended March 31, 2001) Operating Assets (JPY million, except for per share data) June March 30, , 2001 Investment in Direct Financing Leases 1,622,953 1,657,709 Installment Loans 1,918,389 1,846,511 Investment in Operating Leases 464, ,171 Investment in Securities 963, ,158 Other Operating Assets 132, ,006 Total 5,101,933 5,029,555 Operating Results Total Revenues 179, ,149 before Taxes 21,049 59,236 Net 10,442 34,157 Earnings Per Share before Cumulative Effect of a Change in Accounting Principle Basic Diluted Net Basic Diluted Book Value Per Share 5, , Financial Position Shareholders' Equity 467, ,323 Number of Shares ('000) (excluding treasury stock) 81,727 81,706 Long-and Short-Term Debt and Deposits 4,143,990 4,070,545 Total Assets 5,693,269 5,591,311 Shareholders' Equity Ratio 8.2% 8.3% Return on Equity 9.0% 7.7% New Business Volumes Direct Financing Leases New Receivables Added 186, ,396 New Equipment Acquisitions 159, ,330 Installment Loans 269, ,639 Operating Leases 47, ,158 Investment in Securities 88, ,218 Other Operating Assets 22, ,984

5 Condensed Consolidated Statements of (For the Three Months Ended June 30, 2001 and the Year Ended March 31, 2001) (JPY million, US$ million) For the For the year U.S. dollars Three Months ended March June ended June 31, , , 2001 Total Revenues 179, ,149 1,439 Direct Financing Leases 29, , Operating Leases 28, , Interest on Loans and Investment Securities 28, , Brokerage Commissions and Gains on Investment Securities 4,045 12, Life Insurance Premiums and Related Investment 40, , Interest on Deposits 473 2,520 4 Other Operating Revenues 47,699 68, Total Expenses 157, ,001 1,263 Interest Expense 26, , Depreciation -- Operating Leases 18,692 68, Life Insurance Costs 36, , Other Operating Expenses 34,006 43, Selling, General and Administrative Expenses 29, , Provision for Doubtful Receivables and Possible Loan Losses 9,634 44, Write-downs of Long-Lived Assets - 4,090 - Write-downs of Securities 2,132 10, Foreign Currency Transaction Loss, Net 1,142 3,429 9 Operating 21,919 57, Equity in Net (Loss) of and Gain (Loss) on Sales of Affiliates (870) 2,088 (7) before Taxes 21,049 59, Provision for Taxes 10,740 25, before Cumulative Effect of a Change in Accounting Principle 10,309 34, Cumulative Effect of a Change in Accounting Principle Net 10,442 34, Note: Net Increase of Comprehensive under FASB Statement No.130 ("Reporting Comprehensive ") during the three months ended June 30, 2001 and fiscal 2001 are JPY 7,615 million (US$61 million) and JPY 40,126 million, respectively.

6 Condensed Consolidated Balance Sheets (As of June 30, 2001 and March 31, 2001) (JPY million, US$ million) June March U.S. dollars 30, , 2001 June Assets 30, 2001 Cash and Cash Equivalents 201, ,411 1,615 Restricted Cash and Cash Equivalents 18,286 17, Time Deposits 9,195 8, Investment in Direct Financing Leases 1,622,953 1,657,709 13,020 Installment Loans 1,918,389 1,846,511 15,390 Allowance for Doubtful Receivables on Direct Financing Leases and Possible Loan Losses (141,663) (141,077) (1,136) Investment in Operating Leases 464, ,171 3,725 Investment in Securities 963, ,158 7,730 Other Operating Assets 132, ,006 1,066 Investment in Affiliates 60,924 63, Other Receivables 91, , Advances 148, ,148 1,189 Prepaid Expenses 31,304 27, Office Facilities 74,069 74, Other Assets 97, , Total 5,693,269 5,591,311 45,674 Liabilities and Shareholders' Equity Short-Term Debt 1,536,542 1,562,072 12,327 Deposits 181, ,314 1,455 Trade Notes and Accounts Payable 224, ,280 1,798 Accrued Expenses 73,222 81, Policy Liabilities 579, ,887 4,650 Taxes: Current 8,318 10, Deferred 133, ,430 1,069 Deposits from Lessees 62,854 59, Long-Term Debt 2,426,111 2,330,159 19,463 Total Liabilities 5,225,390 5,129,988 41,920 Common Stock 41,906 41, Additional Paid-in Capital 59,970 59, Legal Reserve 2,220 2, Retained Earnings 370, ,262 2,971 Accumulated other Comprehensive 1,725 4, Treasury Stock (8,290) (8,286) (66) Shareholders' Equity 467, ,323 3,754 Total 5,693,269 5,591,311 45,674

7 Segment Information (For the Three Months Ended June 30, 2001 and the Year Ended March 31, 2001) Domestic Operations (JPY million) Revenues Operating Revenues Operating before Assets before Assets Taxes Taxes Corporate Finance 27,420 11,403 1,894, ,113 44,427 1,889,538 Equipment Operating Leases 16,854 2, ,531 61,677 11, ,270 Real Estate Related Finance 6, ,352 24,262 1, ,801 Real Estate 33,160 4, ,625 48,438 (4,604) 310,340 Life Insurance 41,181 3, , ,636 5, ,886 Other 10, ,235 36,215 1, ,835 Sub-Total 136,488 23,165 3,841, ,341 59,949 3,769,670 Foreign Operations Three months ended June 30, 2001 Year ended March 31, 2001 The Americas 17,747 (1,100) 808,165 79,397 8, ,118 Asia and Oceania 17, ,803 48,735 1, ,707 Europe 4,041 1, ,070 15, ,646 Sub-Total 39, ,373, ,283 10,815 1,365,471 Segment Total 176,114 24,016 5,214, ,624 70,764 5,135,141 Reconciliation of Segment totals to Consolidated Amounts 3,253 (2,967) (112,229) 1,525 (11,528) (105,586) Consolidated Amounts 179,367 21,049 5,101, ,149 59,236 5,029,555 Domestic Operations (US$ million) Revenues Operating before Assets Taxes Corporate Finance ,202 Equipment Operating Leases ,095 Real Estate Related Finance ,033 Real Estate ,540 Life Insurance ,472 Other ,473 Sub-Total 1, ,815 Foreign Operations U.S. dollars June 30, 2001 The Americas 142 (9) 6,483 Asia and Oceania ,336 Europe ,196 Sub-Total ,015 Segment Total 1, ,830 Reconciliation of Segment totals to Consolidated Amounts 26 (24) (900) Consolidated Amounts 1, ,930