ORIX Corporation...Installment Loans Yields on Loans Segment Profits Segment Profits: 13.2 JPY bn YoY 6.6 JPY bn ( 33％) Segment Assets: 1,000.1 JPY bn YTD +40.4 JPY bn (+4％) Agency

1Copyright © 2020 ORIX Corporation All rights reserved.

Company Name

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(TSE: 8591; NYSE: IX)

ORIX Corporation Third Quarter Consolidated Financial Highlights

For the Nine-Month Period Ended December 31, 2019

February 3, 2020

Copyright © 2020 ORIX Corporation All rights reserved.

Overview（1） Net Income / ROE

2

✓ 244.3 JPY bn in net income, up by 3.4% YoY. Annualized ROE at 11.0%

Net Income* and ROE

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

Reference: Past Quarterly ROE

(JPY Bn)

13.7%

15.2%

8.5%

9.3%

15.0%

14.4%

9.6%

7.8%

13.2%

11.1%

12.5%

9.1%

14.3%

11.9%

13.7%

8.5%

11.9%

10.9%

11.5%

12.3%

9.6%

12.3%11.4%

-30.00%

-10.00%

10.00%

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

15.3Q1

15.3Q2

15.3Q3

15.3Q4

16.3Q1

16.3Q2

16.3Q3

16.3Q4

17.3Q1

17.3Q2

17.3Q3

17.3Q4

18.3Q1

18.3Q2

18.3Q3

18.3Q4

19.3Q1

19.3Q2

19.3Q3

19.3Q4

20.3Q1

20.3Q2

20.3Q3

Net Income ROE (annualized)

ROE fluctuates quarterly

15.3 16.3 17.3 18.3 19.3 20.3

234.9 260.2 273.2 313.1 323.7

236.2 244.3

11.5% 11.7% 11.3%12.1%

11.6% 11.5% 11.0%

-7.0%

13.0%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

15.3 16.3 17.3 18.3 19.3 19.3 Q3 20.3 Q3

Net Income ROE (annualized)


285.9 294.1222.5 238.5

143.2 107.3

75.3114.5

339.8385.7

420.9 429.1401.4

297.8

352.9

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

15.3 16.3 17.3 18.3 19.3 19.3 Q3 20.3 Q3

Segment profits (other than gains on sales) Gains on sales

Overview（2） Breakdown of Segment Profits

(JPY Bn)

*Major gains on sales: gains on sales of rental property, gains on sales of subsidiaries and affiliates, gains on sales of investment securities, etc.

3

Segment Profits

FY20.3 Q3Segment Profits

352.9 JPY bnup by 19% YoY (+55.1 JPY bn)

Of which

Other thangains on sales

238.5 JPY bn up by 7% YoY (+16.0 JPY bn)Exceeded the level of last year with the contribution of new M&A (NXT, Avolon), although there are a few segments where the profits decreased YoY

Of which

Gains on sales

114.5 JPY bn up by 52% YoY (+39.2 JPY bn)Sold ORIX Living, completed selling all the shares of Houlihan Lokey and sold several PE investments to promote portfolio replacement

New Investments (After FY20.3 Q3)

Oct. 2019Wind power business

（Overseas）Acquired up to 100% of the shares

Dec. 2019Jan. 2020

Infrastructure services

（U.S.）2 PE deals

Jan. 2020Hunt Real EstateCapital

（U.S.）Real estate loan origination and servicing company

Jan. 2020 Kobayashi Kako（PE investment in Japan）Producer and seller of generic drugs.


Segment Profits

Overview（3） Segment Profits / Segment Assets

Segment Assets and ROA

✓ Segment Profits: 352.9 JPY bnReal Estate, Investment and Operation, Retail and Overseas Business increased YoY while Corporate Financial Services and Maintenance Leasing decreased YoY

✓ Segment Assets: 10.9 JPY tn up by 9% YTD (+861.5 JPY bn)*Includes about 200 JPY bn as a result of adoption of new lease accounting standards

(JPY Bn)

(JPY Tn)

4

0

20

40

60

80

100

120

140

18.3 Q3 19.3 Q3 20.3 Q3Corporate Financial Services Maintenance Leasing Real Estate

Investment and Operation Retail Overseas Business

3.4％ 3.4％3.1％

0

2

4

6

8

10

12

18.3 19.3 20.3 Q3

Corporate Financial Services Maintenance Leasing Real Estate

Investment and Operation Retail Overseas Business

Segment ROA (annualized and after-tax)


369.9 364.5 353.7 369.9 364.8 361.4 367.1 374.0

2.4% 2.4%

2.9%

2.3% 2.3% 2.3% 2.2% 2.2%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

18.3 19.3 Q1 19.3 Q2 19.3 Q3 19.3 Q4 20.3 Q1 20.3 Q2 20.3 Q3

Installment Loans Yields on Loans

Segment Profits

YoY▲6.6 JPY bn (▲33％)Segment Profits: 13.2 JPY bn YTD +40.4 JPY bn (+4％)Segment Assets: 1,000.1 JPY bn

✓ Agency fee income from life insurance business for corporate customers decreased. Yields on loans were maintained

✓ Yayoi achieved increase in membership for fee-based support services and sales of packaged products

<Impact from the accounting standard change: IDC (Initial Direct Costs)▲1.4 JPY bn>

✓ Operating leases increased due to new lease accounting standards (+54.9 JPY bn)

✓ Promote business investment to SMEs with succession problems through utilizing financial know-how and sales network ✓ Diversification of services income continues while carefully dealing with asset accumulation at low spreads

*As the figures less than 0.1 JPY bn are rounded off, the total of individual business unit figures does not necessarily match the segment figures

Segment Assets and ROA

(JPY Bn)

(JPY Bn)

BusinessStatus

5

Segment Performance（1） Corporate Financial Services

Yields on Loans (JPY Bn)

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

891.1 860.7 902.4

100.799.1

97.8

3.2%

1.8%

1.2%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

0

200

400

600

800

1,000

1,200

18.3 19.3 20.3 Q3

Domestic Sales Yayoi Segment ROA (annualized and after-tax)

32.4

15.4

8.0

5.1

4.4

5.1

0

5

10

15

20

25

30

35

40

18.3 Q3 19.3 Q3 20.3 Q3

Domestic Sales Yayoi


YoY ▲4.6 JPY bn (▲15％)Segment Profits: 25.8 JPY bn YTD +27.2 JPY bn (+3％)Segment Assets: 900.9 JPY bn

✓ Revenues from both Auto and Rentec increased. ✓ SG&A increased from service improvement partly causing profit to decline<Impact from the accounting standard change: IDC (Initial Direct Costs) ▲1.9 JPY bn >

✓ IT-related rental assets increased✓ Auto assets remained at the same level as FY19.3

Segment Profits Segment Assets and ROA

(JPY Bn)

(JPY Bn)

✓ Expand car sharing business nationwide in cooperation with car rental business. Promote MaaS (Mobility as a Service) by partnering with railway companies, etc.

✓ Seeking to expand the rental business including Yodogawa Transformer (rental business of power receiving, transforming and generating facilities and equipment) and by expanding rental products line up such as collaboration robots and drones

BusinessStatus

Segment Performance（2）Maintenance Leasing

6

(Millions of vehicles)

Number of Automobiles Under Management (ORIX Auto)

1.171.23

1.281.34

1.40 1.43

0.5

0.7

0.9

1.1

1.3

1.5

15.3 16.3 17.3 18.3 19.3 19.9

23.6 22.118.1

7.48.3

7.7

0

5

10

15

20

25

30

35

18.3 Q3 19.3 Q3 20.3 Q3

Auto Rentec

731.3 745.2 755.1

115.9 128.6 145.8

3.3%3.1%

2.7%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

0

200

400

600

800

1,000

18.3 19.3 20.3 Q3

Auto Rentec Segment ROA (annualized and after-tax)


YoY +1.3 JPY bn (+3％)Segment Profits: 56.1 JPY bn YTD +35.9 JPY bn (+5％)Segment Assets: 756.1 JPY bn

✓ Gains on sales from ORIX Living in Q2 ✓ The number of condominiums delivered in Q3 increased YoY at DAIKYO

✓ Assets decreased due to some selling while new investments continue ✓ Operating lease assets increased due to new lease accounting standards

(+92.3 JPY bn)

Segment Profits Segment Assets and ROA

(JPY Bn)

(JPY Bn)

✓ Promoted large-scale projects, such as renovations of Beppu SUGINOI HOTEL (to be completed in 2025), the Osaka Umekita Phase 2 project (to be opened in 2024)

✓ Integrated management initiative with DAIKYO, which became a wholly owned subsidiary in 2019, continues; promoting resources / know-how sharing in areas of Development and Sales, Brokerage, and Management and Construction

BusinessStatus

Segment Performance（3） Real Estate

7

Unrealized Gains on Rental Properties*

(JPY Bn)

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

54.9

82.8

57.0

70.173.7

0

10

20

30

40

50

60

70

80

90

15.3 16.3 17.3 18.3 19.3

620.2515.4 529.7

181.7

204.8 226.46.2%

8.0%

6.9%

0

200

400

600

800

1,000

18.3 19.3 20.3 Q3

RE Investment and Facilities Operation

DAIKYO


52.1 55.449.1

3.3

-0.7

7.0

-10

5

20

35

50

65

18.3 Q3 19.3 Q3 20.3 Q3

RE Investment and Facilities Operation DAIKYO


570650

700780

840 870 870

0

250

500

750

1,000

17.3 17.9 18.3 18.9 19.3 19.9 19.12

YoY +24.5 JPY bn (+79％)Segment Profits: 55.6 JPY bn YTD +74.9 JPY bn (+10％)Segment Assets: 808.5 JPY bn

✓ Gains on sales in private equity investment posted in Q1 and Q3. Concession performed well

✓ Solar power generation business in Japan remained strong

✓ Made wind power generation investees in overseas into our wholly owned subsidiaries

✓ Operating assets related to environment and energy business increased due to new lease accounting standards (+40.0 JPY bn)

Segment Profits Segment Assets and ROA(JPY Bn)

(JPY Bn)

✓ Private equity investment generated investment profit of more than 100 JPY bn in the last five years; exploring opportunities with a view to engage in long-term strategic investment. 2 new investments made in FY20.3

✓ Solar power generation business in Japan is doing well (1GW secured including those plants under construction); also started to promote geothermal power and wind power

BusinessStatus

Segment Performance（4） Investment and Operation

8

(MW)

Solar Power Generation Business in Japan

31.3

11.4

30.0

19.4

10.2

10.5

8.7

9.5

15.0

0

10

20

30

40

50

60

18.3 Q3 19.3 Q3 20.3 Q3

Investment and Operation Enviroment and Energy Concession

258.8 288.9 268.9

371.0395.6

483.2

44.849.2

56.3

9.1%

3.7%

6.6%

0

200

400

600

800

1,000

18.3 19.3 20.3 Q3

Investment and Operation Enviroment and Energy

Concession Segment ROA (annualized and after-tax)


3.493.72

3.944.10

4.264.46

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

17.3 17.9 18.3 18.9 19.3 19.12

YoY +4.2 JPY bn (+6％)Segment Profits: 70.4 JPY bn YTD +538.9 JPY bn (+15％)Segment Assets: 4,110.3 JPY bn

✓ Life insurance remained solid. Loss from variable life insurance posted in the previous year now gone

✓ Finance revenues of banking increased

✓ Investment in securities at life insurance business and installment loans at banking business increased

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

✓ ORIX Life Insurance expanded its product lineup. As a result, number of insurance policies increased steadily ✓ ORIX Bank increased its assets constantly while maintaining net interest margin at 2% level

BusinessStatus

Segment Performance（5）Retail

9

(Millions of policies)

Number of Insurance Policies in Force

1,055.6 1,254.71,557.4

1,937.4

2,132.7

2,369.9

181.4

184.1

183.0

1.6%1.7% 1.7%

0

1,000

2,000

3,000

4,000

5,000

18.3 19.3 20.3 Q3

Life Insurance Banking Credit Segment ROA (annualized and after-tax)

40.7 39.5 42.4

15.0 18.220.1

7.68.6

8.0

0

10

20

30

40

50

60

70

80

18.3 Q3 19.3 Q3 20.3 Q3

Life Insurance Banking Credit


869.71,152.9 1,216.6

353.8

343.1 336.2381.7

646.3 678.4

1,003.6

996.71,052.0

2.8%3.0%

3.8%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

18.3 19.3 20.3 Q3

OCU OCE

Aircraft, Ships Asia and Australia, and other


Large-scale investmentIn FY19.3

Segment profitsIn FY20.3 Q3

NXT Capital(Loan origination, asset management)

8.3 JPY Bn

Avolon(Aircraft leasing)

14.1 JPY Bn

YoY +36.3 JPY bn (+38%)Segment Profits: 131.9 JPY bn YTD +144. 2 JPY bn (+5％)Segment Assets: 3,283.2 JPY bn

✓ Profit from new investments in FY19.3 and gains on sales in Asia and U.S. contributed

✓ Foreign exchange impact ▲3.9 JPY bn

✓ Installment loans at OCU business and aircraft operating lease assets increased✓ Excluding foreign exchange impact of ▲48.3 JPY bn, segment assets increased by

192.5 JPY bn

Contribution from New InvestmentsSegment Profits Segment Assets and ROA(JPY Bn) (JPY Bn)

OCU: ORIX Corporation USAOCE: ORIX Corporation Europe

✓ Continue to seek diversification of loan and asset management business in U.S. and Europe. Acquired all the shares of Hunt Real Estate Capital✓ Pursue synergy with Avolon to further increase the scale of aircraft leasing business and enhance the presence

BusinessStatus

10

Segment Performance（6） Overseas Business

36.6 38.549.8

33.7 28.3

24.7

17.6 27.7

32.8

21.6 1.2

24.6

0

20

40

60

80

100

120

140

18.3 Q3 19.3 Q3 20.3 Q3

OCU OCE Aircraft, Ships Asia and Australia, and other


2,682.42,897.1 3,008.4

85%88%

85%

40%

60%

80%

100%

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

15.3 16.3 17.3 18.3 19.3 19.12

Shareholders’ Equity Employed Capital Ratio

Shareholder’s Equity /Employed Capital Ratio

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

✓ Employed Capital Ratio : Continue to pursue growth while controlling risk and return

Financial Soundness Funding structure / Employed Capital Ratio

*Excluding deposits(JPY Tn) (JPY Bn)

Breakdown of Funding and Trend in Long-term Debt Ratio*

11

0%

20%

40%

60%

80%

100%

0

1

2

3

4

5

6

7

15.3 16.3 17.3 18.3 19.3 19.12Borrowings from Financial Institutions Capital Markets（Long-term）Capital Markets（CP） DepositsLong-term Debt Ratio（right axis）


FY20.3 Q3 net income was 244.3 JPY bn (up by 3.4% YoY)

Annualized ROE at 11.0%

Achieving 300 JPY bn net income in FY20.3 is on track

Aiming for sustainable growth while

consideration to shareholders return continued

Summary

12


◼ 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. 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 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 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.

Disclaimer

13

14Copyright © 2020 ORIX Corporation All rights reserved.

Company Name

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ORIX Corporation Corporate Planning DepartmentWorld Trade Center Building, 2-4-1, Hamamatsu-cho, Minato-ku, Tokyo 105-6135, Japan

Tel: +81-3-3435-3121 Fax: [email protected]

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Documents

ORIX Corporation...Installment Loans Yields on Loans Segment Profits Segment Profits: 13.2 JPY bn YoY 6.6 JPY bn ( 33％) Segment Assets: 1,000.1 JPY bn YTD +40.4 JPY bn (+4％) Agency