Environment and EnergyService Guide

The Environment and Energy Business Vision

Key Business Developments

ORIX is a leader in the field of environment and energy and, going forward, we will continue to expand into new fields

ORIX has been involved in the environment and energy business for more than 20 years. Over this period, we have

compiled an impressive track record in a variety of fields related to renewable energy. These include power generation,

power retailing, storage battery services, ESCO services, and waste recycling and processing. In particular, ORIX is one of

Japan’s leaders in the field of solar power generation, with a power generation capacity of approximately 1,000 MW.

In recent years, the business environment has changed significantly in Japan, with a fall in the prices of electricity feed-in

tariffs, and increased competition in power retail markets. Meanwhile, the global trend for sustainable growth, as

exemplified by ESG*1, SBT*2, SDGs*3, and RE100*4, is rapidly gaining traction among Japanese companies as well. Given

these circumstances, ORIX intends to focus on the following goals.

In Japan, the national government has positioned renewable energy as an important energy source, and ORIX will develop

new businesses in this field. More specifically, we will focus on both offshore and onshore wind power generation as well

as geothermal power generation. In addition, ORIX intends to develop a solar power generation business that serves the

needs of companies for self consumption of energy. As part of this initiative, ORIX will not only incorporate storage battery

services that leverage the know-how it has cultivated thus far but, with an eye on the future, also develop technologies,

such as IT-based supply and demand management for renewable energy. In the field of electric power supply, competition

is growing rapidly. However, by refining its expertise in supply and demand management, and by meticulously meeting

customer needs for environment friendly products, ORIX will work to expand its business. As far as energy management

service is concerned, we will utilize the IoT technologies of Ubiteq, INC., a consolidated subsidiary, to improve the

efficiency of production equipment and, as a shortage of labor becomes increasingly widespread, to contribute to

labor-saving initiatives. In the field of resources and waste, ORIX plans to invest in new facilities via ORIX Environmental

Resources Management Corporation, with a focus on processing food waste.

Overseas, ORIX has made wholly owned subsidiaries of major Indian wind power generation businesses and, through

mergers and acquisitions, is also considering entering the European renewable energy market. In this way, we will

accelerate the global expansion of its environment and energy business.

As the world itself and market environments continue to change, ORIX intends to integrate our expertise in the field of

renewable energy—which encompasses everything from power generation to waste recycling—and create new

businesses. ORIX is a leading comprehensive environment and energy business and, going forward, we will continue to

undertake new challenges on a daily basis so that we can serve the needs of both our customers and society.

*1 “ESG” stands for “Environment, social, and governance.” Corporations must consider each of these factors if they want to contribute to the formation of a sustainable society. Investment that prioritizes ESG is known as “ESG investing,” and in recent years ESG has been increasingly used worldwide as an index for corporate evaluations.

*2 “SBT” stands for “science-based target.” SBT is an initiative detailed in the Paris Agreement—an international agreement to limit the impacts of climate change, adopted at COP 21—which seeks to limit global warming to less than 2˚C when compared to pre-industrial levels.

*3 “SDGs” stands for “Sustainable Development Goals.” The 193 member states of the United Nations have pledged to achieve these goals in the 15 years spanning 2016 to 2030.*4 “RE100” stands for “Renewable energy 100%.” It is an initiative that brings together corporations committed to sourcing 100% of their global electricity consumption from renewable

sources.

Energy fieldDerived from leasing and consulting functions

1995 Invested in a wind power company2000 Launched ESCO services2002 Established Energy and Eco Services Department at ORIX Corporation

Launched ESCO services

Launched waste processing intermediary service1998 Established ORIX Eco Services Corporation

Entry into electric power business2007 Launched electricity wholesale business2009 Launched power retailing business

Expansion of energy-savingservices2010 Launched sales business of solar power generation systems2010 Invested in Ubiteq, INC.

Network-building2003 ORIX Eco Services Corporation Launched nationwide recycling system

Operation of waste recyclingfacilities2006 ORIX Environmental Resources Management Corporation started operation of Yorii Plant Started processing of industrial waste materials, specially controlled industrial waste materials, and general waste materials2008 ORIX Eco Services Corporation Launched carbon offset service

Environmental fieldDerived from proper processing of end-of-lease assets

Leasing

1

Contents

Waste Disposal and Resource Recovery Business p.13

million kW (Approx. 1,000 MW)

million kWh

Renewable Energy Electric Power SupplySolar power generation(Generation capacity)

Power retailing(Total amount of power sold)

t-CO2

Approx. Approx.Approx.1 2,360 93,500Energy-saving services(CO2 reduction amount)

Approx. 10,500 facilities (The number of facilities to which ORIX provides electric power)

Energy Management Service

Total projects planned, under construction, or in operation as of March 31, 2019

*1

*2

Mega-solar power generation

Generationcapacity

830,000 kW (826 MW)

Rooftop solar power generation

Generationcapacity

170,000 kW (169 MW)

Across Japan517 locations

Energy Business by the Numbers

Energy Business p.3

Renewable Energy p.3

Energy Management Service p.9

Electric Power Supply p.7

Global Business Development p.11

Total CO2 reductions under ESCO contracts in the fiscal year ended March 31, 2019. Yearly CO2 reduction volumes are estimated via trial calculations at the start of the project under the ESCO contract. Contribution terms for CO2 reduction are assumed to take place over five years.

2011 Agatsuma Bio Power Co., Ltd. Started operation Agatsuma Biomass Power Plant2012 Launched solar power generation business2013 Established ONE Energy Corporation and launched storage battery system rental service

Expansion of renewable energy business

Establishment of a value chain2011 ORIX Eco Services Corporation Launched metal resources business 2015 ORIX Environmental Resources Management Corporation Started operation of Tachikawa City’s business-related general waste reshipment facility 2016 ORIX Eco Services Corporation Opened and started operation of Kasukabe Plant

2016 ORIX Environmental Resources Management Corporation Built wide area network for general waste disposal in collaboration with business operators 2016 ORIX Eco Services Corporation Acquired authorization under the Act on Promotion of Recycling of Small Waste Electrical and Electronic Equipment 2017 ORIX Environmental Resources Management Corporation Acquired Zeeklite Co., Ltd a final disposal site operator

Expansion of global business2014 Established an environmental and energy investment fund together with the Asian Development Bank and Robeco Institutional Asset Management B.V.2016 Invested in wind power generation business companies in India2016 Invested in Bitexco Power Corporation, Vietnam’s largest private hydropower company

2017 Invested in Ormat Technologies, Inc., U.S. geothermal power generation company2018 Established ORIX Corporation UK Limited (ORIX UK) in the U.K.2019 Made wholly owned subsidiaries of Indian wind power generation business companies

*1 The total amount of extra-high and high-voltage power sold for the fiscal year ended March 31, 2019

*2 As of March 31, 2019

Across Japan111 sites

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Renewable Energy

Energy Business

Solar power generation using the roofs of facilities

ORIX is engaged in the solar power generation business by installing solar power generation systems on the roofs of commercial facilities and other buildings owned by ORIX Group as well as on the roofs of factories, warehouses, and other large-scale facilities owned by our customers and rented by the Group. Unlike land-based solar panels, roof-based solar panels require no ground preparation and less time for installation and the starting of power generation. The benefits accruing to customers include the effective use of roofs that would not otherwise generate revenue, as well as the reduced air conditioning needs at their facilities due to the heat-shielding effect of the solar panels. ORIX suggests a variety of proposals to maximize use of our customers’ facilities and efficiently generate power. Examples include designing facilities to use rooftops for solar power generation, and using lightweight solar panels.

ORIX Corporation Kyuko-Lease Inc.Rooftop solar power generation

Niigata Yotsugoya Power Plant has a generation capacity of 55,600 kW (55.6 MW)

Mega-solar construction sites (planned)

111 sites across Japan

ORIX Corporation NS Lease Co., Ltd. Kyuko-Lease Inc.Mega-solar power generation

ORIX provides total support for customer’s power generation

ORIX supports our customers installing solar power systems by leveraging economies of scale using the network of installation companies nationwide. Support is provided from installation to maintenance after installation as a one-stop service, and includes selecting appropriate equipment from multiple manufacturers, proposing leasing, installment loans and other fundraising solutions, as well as other services such as advising on obtaining facility certification for the feed-in-tariff system and on applications under the subsidy system for household power generation.

ORIX CorporationSupport for installing solar power generation systems

ORIX Group is contributing to the prevalence of renewable energy including solar power, biomass, geothermal, wind, and other renewable energy sources.

Large-scale solar power plants on unused land

ORIX is renting unused land owned by local governments, companies, and other landowners across Japan to build large-scale power generation facilities (mega-solar power plants) that have generation capacities of more than 1,000 kW (1 MW).

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Operation, Management, and Maintenance of Renewable energy power plants

In August 2018, ORIX established ORIX Renewable Energy Management Corporation (OREM), a company tasked with the operation, management, and maintenance of power plants that use renewable energies such as solar power. OREM operates and manages power plants at 85 sites nationwide, with a combined power generation capacity of approximately 395 MW. Leveraging the knowledge cultivated by ORIX in its renewable energy power plant activities, OREM carries out maintenance and checks both to prevent risks and to ensure continued normal operations at these power plants. OREM also provides immediate recovery support to minimize downtime and power generation losses in the event of malfunctions, and maximizes power generation capacity by using remote monitoring and data analysis to visualize power generation conditions at the plants. By rolling out a comprehensive power plant operation, management, and maintenance service that make use of high-level expertise, OREM intends to contribute to the widespread popularization of renewable energies.

ORIX Renewable Energy Management Corporation

Providing high-level expertise aimed at promoting the use of renewable energy as a key power source

T O P I C S

ORIX CorporationCorporate PPA*1

Installing solar power generation systems and supplying electricity at customers’ facilities

Through its Corporate PPA service, ORIX installs solar power generation systems and storage battery systems at customer-owned facilities, and supplies the electricity generated through these systems to the customers. Customers pay service fees to ORIX depending on the amount of electricity they use. After the completion of the contract period, either the systems are transferred to the customer, or the contract is extended.In recent years, an increasing number of companies have been focusing on ESG*2 and SDGs*3. This service serves the needs of such companies who wish to reduce CO2 emissions and limit electricity costs.

As use of renewable energy for power generation increases, there has been a growing shift across the world from centralized power supply systems based on large power plants to distributed power supply systems based on relatively small local power plants. The Corporate PPA service promotes the use of distributed energy networks, in which factories, warehouses, stores, and other energy users can become energy suppliers by installing and using solar power generation systems and stationary storage battery systems within their premises.ORIX will use its expertise in the generation and supply of renewable energy-based electricity, and in the provision of household storage batteries, to support the widespread use of new supply sources and the efficient consumption of electricity. Going forward, ORIX will seek to become a leading supplier of distributed energy.

Customer

EPC service provider

Order

Payment of service fees

Engineering, procurement,and construction

Energy service contract

Electricity chart

Installation of solar power generation systems(and storage battery systems)

Energy service contract (assuming a contract period of 10 to 20 years)

A: Electricity purchased from electricity company in the event of shortfallB: Self consumption; fees based on quantity used (CO2-free electricity)

kW

TimeMorning EveningNoon

B(Self consumption of

renewable energy)

AA

Power plant operation and management work

*1 “PPA” stands for “power purchase agreement.” *2 “ESG” stands for “environment, social, and governance.” Corporations must consider each of these factors if they want to contribute to the formation of a sustainable society. *3 “SDGs” stands for “Sustainable Development Goals.” The 193 member states of the United Nations have pledged to achieve these goals in the 15 years spanning 2016 to 2030.

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*1 According to research carried out by ORIX. *2 Hot water is drawn from underground, and its heat is used to vaporize a second fluid with a boiling point lower than water; the

vapor is used to turn a turbine, which generates power.

Energy Business

Agatsuma Biomass Power Plant

*1 Track record of fiscal year ended March 31, 2019. *2 Calculations based on consumption of approximately 3,120 kWh per year per household; Source: Electricity Rate of the Average Model, Tokyo Electric Power Company Holdings, Inc.

Biomass power generation utilizing wood chips

Power Plant, a wood chip-fired thermal power station located in Gunma Prefecture. Wood chip-fired power generation works by using wood chips as fuel to heat a boiler and then using the steam from the boiler to power a turbine to generate electricity. The use of biomass as an alternative to fossil fuels enables environment-friendly power generation. The power plant has a generation capacity of 13,600 kW (13.6 MW), and an annual transmission capacity of 87 million kWh*1. This equates to the annual power consumption of approximately 28,000 households*2. ORIX also operates coal-biomass co-fired power plants. It started operations of a co-fired power plant in Soma City, Fukushima Prefecture, in April 2018, and in Kitakyushu City, Fukuoka Prefecture, in December 2018. (For details, please see page 8.)

Agatsuma Bio Power Co., LtdBiomass power generation

Power generation using geothermal energy

ORIX has begun construction of the Minami-Kayabe Geothermal Power Plant (name to be confirmed) in the Minami-Kayabe region of Hakodate City, Hokkaido. The plant will have a generation capacity of 6,500 kW (6.5 MW), and will be one of the largest*1 binary cycle*2 geothermal power plants in Japan. ORIX aims to finish construction and start commercial operations in early spring 2022.

ORIX also currently owns and operates one of the largest private geothermal power generation facility in Japan. With a generation capacity of 1,900 kW (1.9 MW), the facility is located on the site of the Beppu Suginoi Hotel (Beppu City, Oita Prefecture), a Japanese-style hot spring inn operated by ORIX Group. ORIX has been researching and developing its geothermal business at multiple locations across Japan; this includes conducting surveys for a publicly tendered geothermal power generation business in Hachijo-Island, with the goal of starting operations in 2022.

Suginoi geothermal power generation facility

ORIX CorporationGeothermal power generation

ORIX first invested in an onshore wind power generation business in 1995. Since then, ORIX has accumulated knowledge related to wind power generation in Japan and overseas, and used this knowledge to investigate the feasibility of developing both onshore and offshore power generation businesses. At present, ORIX has invested in, or is considering the feasibility of, the following two businesses.

• Investment in the Akita Araya Wind Farm (Akita City, Akita Prefecture), a wind power generation project with a generation capacity of 8,700 kW (8.7 MW)

• Considering the feasibility of an offshore power generation business in Choshi City, Chiba Prefecture (carrying out marine geological surveys, etc.)

ORIX CorporationWind power generation

Image of Minami-Kayabe Geothermal Power Plant (name to be confirmed)

5

Thus far, six ORIX research projects across Japan have been selected to receive subsidies from Japan Oil, Gas and Metals National Corporation (JOGMEC).

Undergoing research and development(JOGMEC subsidy project)

Undergoing research and development

Operational power generation project

Geothermal power generation business

Shimofuro (Kazamauramura, Aomori Prefecture)

Minami-Kayabe (Hakodate City, Hokkaido)

Yachinosawa(Yuzawa City, Akita Prefecture)

Suginoi geothermal power generation facility (Beppu City, Oita Prefecture)

Sensuizan (Kokonoe Town, Oita Prefecture)

Jogakura (Hakkodasan, Aomori Prefecture)

Higashihachimantai (Hachimantai City, Iwate Prefecture)

Hachijo-Island (Hachijo Town, Tokyo)

6

ORIX helps reduce customer power costs through a low-cost power supply service.

Supplying low-cost electric power to customers

As a power producer and supplier, ORIX supplies generated power primarily to privately owned buildings and facilities requiring high-voltage power at reasonable prices within the areas of Tohoku Electric Power Company, Tokyo Electric Power Company, Hokuriku Electric Power Company, Chubu Electric Power Company, Kansai Electric Power Company, Chugoku Electric Power Company, and Kyushu Electric Power Company.Moreover, ORIX provides a website that offers customers access, free of charge, to information on their monthly electricity usage and charges, as well as a visible log of the electricity they are using in 30-minute intervals. Such data is available to the customer for both viewing and downloading. Customers with multiple contracts also have access to the electricity usage data in a table format that is easy for comparison among the facilities.

Use

Supply

Backup

Power company generators

Generators contracted by ORIX

ORIX

CustomersPower company’s electric power distribution network

Receipt Transmission

Image of customer page

Energy Business

Electric Power Supply

ORIX CorporationPower retailing

Expansion of Power Retailing

ORIX launched its electric power wholesale business in 2007, and its power retailing business in 2009. Using ORIX Group’s unique customer network, at present ORIX supplies and sells approximately 2 billion kWh per year to approximately 10,000 corporate facilities. Since it operates three power plants, ORIX is able to provide a comprehensive service from power generation to retail, and so ensure a stable power supply in the medium- and long-term. ORIX intends to use its expertise in these businesses to develop a range of services that serve customer needs, such as reducing electrical power costs and developing distributed energy products.

ORIX Corporation

Supplying and selling 2 billion kWh per year to 10,000 corporate facilities

T O P I C S

7

Operation of power plants to ensure stable power supply

In April 2018, ORIX started operation of the Soma Coal and Biomass Power Plant with a generation capacity of 112,000 kW (112 MW) in Soma City, Fukushima Prefecture. Its annual transmission capacity of approximately 859 million kWh is equivalent to the annual electricity consumption of approximately 280,000 households*. In December 2018, ORIX started operations at the Hibikinada Coal and Biomass Power Plant, a coal-biomass co-fired power plant with the same specifications located in Kitakyushu City, Fukuoka Prefecture.At these two plants, biomass accounts for approximately 30% or more of the total amount of fuel; this results in lower CO2 emissions compared to coal-fired power plants in the same class and so decreases the environmental burden. Using such world-class environment friendly facilities, ORIX is engaged in advanced measures for a sustainable future.Through the adoption of safe and secure combustion methods at Agatsuma Biomass Power Plant, Soma Coal and Biomass Power Plant, and Hibikinada Coal and Biomass Power Plant, ORIX will generate and supply electricity in a stable manner that is unaffected by the seasons or weather conditions.

Supplying low-carbon electrical power to businesses

ORIX has launched environment friendly electrical power supply services (low emissions factor services) in response to growing environmental awareness, as embodied by RE100*1 and ESG investing*2. ORIX provides support both for achieving RE100 and for reducing CO2 emissions via increasing the proportion of electrical power generated from renewable energy, such as wind power and biomass power, and purchasing non-fossil certificates and J-Credits.

ORIX’s power supply areas

In addition to the company-operated power plants listed above, ORIX has also concluded contracts with more than 300 power plants to supply electrical power.

Soma Coal and Biomass Power Plant

Location: Soma City, Fukushima Prefecture

Power output: 112,000 kW (112 MW)

Fuel: Coal and wood chip biomass

Agatsuma Biomass Power Plant

Location: Agatsuma-gun, Gunma Prefecture

Power output: 13,600 kW (13.6 MW)

Fuel: 100% wood chip biomass

Power supply areas

ORIX CorporationOperation of power plants

ORIX CorporationEnvironment friendly power supply services

* Calculations based on consumption of approximately 3,120 kWh per year per household; Source: Electricity Rate of the Average Model, Tokyo Electric Power Company Holdings, Inc

* Some islands excluded.

Hibikinada Coal and Biomass Power Plant

Location: Kitakyushu City, Fukuoka Prefecture

Power output: 112,000 kW (112 MW)

Fuel: Coal and wood chip biomass

*1 “RE100” stands for “Renewable Energy 100%.” It is an initiative that brings together corporations committed to sourcing 100% of their global electricity consumption from renewable sources. *2 “Investment that prioritizes companies that take into consideration Environment, social, and governance (ESG) is known as “ESG investing.”

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Providing IoT services for the manufacturing industry to improve productivity, eliminate dependence on individual employees, and realize labor savingsUbiteq’s IoT services remotely monitor the production and product quality data of manufacturing industry customers in real time, record and store this data in the cloud, analyze it by using AI, and realize productivity improvements, such as increased yield and enhanced product quality. The services use data analysis and automation to standardize the production technology operations of its customers, and thereby resolve management issues such as dependence on individual employees and labor shortages.

ORIX Group helps customers save power and cut costs by making proposals in consideration of the energy usage of each customer.

Energy Business

Energy Management Service

Customizing services to the needs of various facilities, including factories, warehouses and commercial facilitiesEnergy-saving services realize energy savings and reduce CO2 emissions by improving productivity when customers renew or install production equipment at their factories and buildings.

ORIX CorporationEnergy-saving servicesLNGOil

Ubiteq, INC.IoT services for the manufacturing industry

Engineering companies

Maintenance companies

General contractors and subcontractors

Various manufacturers

• Capital investment• Maintenance• Subsidy application support

• Installation• Energy conservation assessment

Service fees

Joint subsidy filing*1 Subsidy payment*2

CustomersLease contracts and

ESCO contracts

• Installation work• Maintenance

• Installation service fee• Outsourcing fee

Subsidyproviders

*1 As this is a joint subsidy filing between ORIX and the customer, cooperation from the customer will be required in such work as application filing and asset management. *2 The ESCO service does not guarantee receipt of subsidies. In the event of a public bidding requirement infringement, the subsidy may have to be refunded.

As subsidies derive from public funds there is an obligation to limit and report on disposition of property, and unauthorized changes in plans or failure to achieve results may result in a request to refund the subsidy.In the case of joint applications, if ORIX has refunded a subsidy, the customer shall be required to pay an amount equivalent to the refunded subsidy (except in the case that ORIX is liable to refund the subsidy).

Phase01 Phase02 Phase03Improvements to rates of operation at facilities

Reductions in proportions of defective products

Improvements to operational efficiency

Elimination of dependence on individual employees

Labor savingsRes

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Visualization of abnormalitiesand defective products

Monitoring of manufacturing conditionsand operational status data

Recording of facility abnormalitiesand defective product data

Storage of data in the cloud

Trend analysis

Data cleansingAnalysis of abnormalities and defective product conditions

Standardization of manufacturing conditions

Clarification of issues

Prevention of abnormalitiesand defective products

Alarm and feedback control in case of abnormalities and defective products

Reductions in operational loss and proportion of defective products

Analysis automation using AI

Installation servicecontract

Business outsourcingcontract

Real-time factory facility monitoring system

9

Joint Research into a Tracking System to Encourage Local Production and Consumption of Power

Together with the School of Engineering at the University of Tokyo, ORIX has started joint research into a tracking system that leverages blockchain technology to prove the production site and history of renewable energy-based electric power, from supply to consumption. In recent years, as social interest is increasing in the achievement of a carbon-free society and ESG investment, global movements at corporations and local municipalities aiming for RE100, whereby 100% of consumed power is renewable energy. However, an issue had arisen as the source of electricity was unable to be determined for conventional power supply services meaning that the site of production of renewable energy could not be proven. This was because the power produced at power plants is centralized on a power grid before being sent to consumers such as corporations and individuals. In order to resolve such issues, ORIX and the University of Tokyo will conduct demonstration tests on a system that uses power transaction and GPS data to track various aspects of power generated from renewable energy, including its production site, source of power, production time, and suppliers. Matching verification of distributed networks that are simultaneous/commensurate*1 with multiple power sources such as solar power generators and general households, and multiple consumption sites such as offices, factories and electric vehicles will also be implemented. ORIX and the University of Tokyo also intend to develop a system for minimizing the geographical power transmission distance between multiple generation sites and sites of consumption, will be developed to promote the local production and consumption of renewable energy.As this will lead to users purchasing power from local power sources, it is hoped that it will contribute to vitalizing local economies while also reducing transmission loss and enabling the efficient use of power. In the future, ORIX will work to develop comprehensive power networks including demand response*2, virtual power plants (VPP) using electric vehicles, as well as coordinating with the disaster systems of local municipalities with the aim of also applying this technology to social systems, such as utilizing electric vehicles as emergency power sources in areas affected by disasters.Ahead of anticipated changes in the social environment going forward, both ORIX and The University of Tokyo hope to contribute to the popularization of well-balanced renewable energy and the realization of a distributed energy network society.

ORIX Corporation

Using blockchain technologies to accelerate the uptake of RE100 energy

T O P I C S

PowerconsumerRenewable energy power plant

Image of local production and consumption of powerConcept diagram of system

Meter

Solar power generationElectric vehicle

Power flowData flow

Storage battery

Data collection terminal Data collection terminal Data collection terminal

Power tracking system

Power distributioncompany

Office, factory, logistics center etc.

Transaction data

GPS positional data

Transaction data

GPS positional dataGPS positional data

Charged/discharged power data

Charged/discharged power data

*1 As it is difficult to store electricity as it is, the supply and demand volume must constantly be matched in terms of total volume over 30 minutes. *2 While the volume of power supplied is conventionally adjusted to match the amount of energy demand, Demand response refers to achieving simultaneous/commensurate amount by

having the user adjust the amount of demand.

Participating in a Demonstration Project to Build a Virtual Power Plant (VPP)

ONE Energy is a member of the Virtual Power Plant Construction Demonstration Project*, which is headed by Tokyo Electric Power Company Holdings, Inc. Virtual power plants (VPP) control the charge and discharge of storage batteries installed at the homes of private customers to make them function like a single power plant. VPPs make efficient use of small distributed energy resources, and provide the economic benefit of being cheaper to establish than large power plants.

* Fiscal 2017 project fostered by the Sustainable Open Innovation Initiative under the auspices of the Japanese Ministry of Economy, Trade and Industry to establish virtual power plants by using energy resources owned by electric power consumers.

ONE Energy Corporation

Using household storage batteries as virtual power plants

T O P I C S

10

Strategic partnership with Ormat through capital participation

ORIX is a shareholder in Ormat Technologies Inc. (Ormat), a U.S. company involved in geothermal power generation. Ormat is the world’s only vertically integrated geothermal power company that designs, manufactures, sells, and installs geothermal power generation systems while developing geothermal resources and handling the geothermal power generation business on its own. Ormat possesses geothermal power generation systems with a combined global generation capacity of approximately 2,900,000 kW (2,900 MW). It is also the global leader in binary power generation equipment, boasting approximately 80% of the world’s installed capacity.Moreover, Ormat is operating not only in the U.S. but also in Central America, Africa, and elsewhere, and possesses a generation capacity of 910,000 kW (910 MW). Through its capital participation, ORIX will strategically partner with Ormat and promote the geothermal power generation business mainly in Japan and across Asia.

(As of May 2019)

Following its entry into Hong Kong in 1971, ORIX Group has established bases in 37 countries and regions (as of March 31, 2019) and extended its operations across the world.Capitalizing on know-how cultivated in the environment and energy-related business in Japan, ORIX is aggressively engaging in this business in emerging markets particularly in Asia, where strong demand is anticipated.

Global Business Development

Geothermal power generation on a global scale

Karnataka Madhya Pradesh

Making wholly owned subsidiaries of Indian wind power generation business companies

ORIX has agreed to acquire all the shares in the wind power generation business subsidiaries it jointly owned with IL&FS Wind Energy Limited (IWEL), which is a subsidiary of Infrastructure Leasing & Financial Services Limited (IL&FS), an Indian infrastructure development and investment company. As such, it is in the process of making these wind power generation business companies its wholly owned subsidiaries. The Indian government has announced policy goals to introduce a total of 175 GW of renewable energy by the end of 2022; it plans for 60 GW of this total to be produced by wind power. Going forward, India’s wind power generation market is expected to continue to grow significantly and, for this reason, ORIX intends to strengthen its wind power generation business in the country.

Wind power generation business in India

Energy Business

The McGinness Hills Complex power plant owned and operated by Ormat

11

Investing in European Markets, Which Lead the World in the Field of Renewable Energy

In January 2018, ORIX established ORIX Corporation UK Limited (ORIX UK) in London, the U.K. ORIX UK acquires interests primarily in renewable energy companies, and thereby seeks to establish foundations for ORIX to develop its renewable energy business. By investing in European markets, which lead the world in the field of renewable energy, ORIX intends to further expand its business around the globe.

ORIX Corporation

Establishing the foundations of a renewable energy business

T O P I C S

Effective use of building rooftops and small plots of land

In India, ORIX works on the distributed solar power generation business together with SUN Group, a local medium-sized conglomerate. A feature of the business is that solar power generation equipment is installed on the rooftops of buildings and on small plots of land with the power generated used at the place of installation. Having the source of power close to where it will be used prevents transmission loss, and allows for power to be obtained from a power company at night or during poor weather periods.Distributed solar power systems can be installed even in small spaces. It is also a locally-produced, locally-consumed power source that does not require large amounts of investment. As such, greater demand is forecast in India, where many areas remain without electricity.Moreover, demand for green power generated by using renewable energy sources has been expanding among electric power consumers, which is expected to foster the introduction of distributed systems.

A rooftop solar power generation plant in Bangalore, India

Distributed solar power generation business in India

The DakMi 4 power station which is owned and operated by BPC

Responding to the continued growing demand for electricity in Vietnam

ORIX has acquired a stake in the Vietnamese hydro and solar power generation business company, Bitexco Power Corporation (BPC). BPC is a major private-sector company, which either operates or is in the process of constructing 20 hydro and solar power generation facilities across Vietnam with a combined generation capacity of 895,000 kW (895 MW).Demand for electricity in Vietnam is growing by an average of over 8% per year, and by 2030 it is expected to be more than triple that of 2015.The Vietnamese government has adopted a policy of gradually liberalizing the electricity utility market to respond to the strong demand for electricity. ORIX will press ahead with a broad range of businesses in Vietnam by leveraging its expertise in the renewable energy business and the power retailing business.

(As of March 2019)

Hydro and solar power generation business in Vietnam

12

ORIX Group offers a one-stop resource and waste disposal service to customers and meets their diversified needs by utilizing the logistics network of companies established across Japan and the appropriate processing functions provided by the facilities operated by the Group.

Conducting waste disposal business by using ORIX Group’s network and expertise

ORIX deals with hundreds of thousands of end-of-lease asset contracts each year; the majority of contracts are renewed, while the remaining contracts are ended. ORIX Eco Services Corporation (OES) uses its nationwide network to collect end-of-lease assets and to promote reuse and recycling. ORIX Group has been leveraging this expertise and network to engage in the recycling and waste disposal businesses. In 2017, Zeeklite Co., Ltd (Zeeklite), which operates one of Japan’s largest controlled-type final landfill sites, joined ORIX Group. Through the value chain built from the facilities and nationwide networks of OES, ORIX Environmental Resources Management Corporation (OERM), and Zeeklite, ORIX Group has provided a one-stop service, from pickup of unnecessary items and collection and transportation of waste, to final disposal.

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OA and IT devices

Resources

Sludge Waste oil, acids and alkalis (including specially

controlled waste)

Waste plastics

General waste (Combustible and noncombustible trash)

Waste products

Scrap paper, wood and fibers

Industrial waste General waste

Automatic vending machines

ORIX Eco Services Corporation

ORIX Environmental Resources Management Corporation

Zeeklite Co., Ltd

Sells reusable items to dealers of second-hand items. Removes data from PCs and servers, etc.

Items that cannot be reused are disassembled and sorted by material. Iron, non-ferrous metals, and other recyclable items are recycled as materials

Conducts 100% waste recycling at the advanced processing facilities.

Properly disposes of unrecyclable items

Advanced wasteprocessing facilities

Ring shredder (Funabashi Plant)Room used for data removal(Funabashi Plant and Kasukabe Plant)

Waste Disposal and Resource Recovery Business

Waste Disposal and Resource Recovery Business

One-Stop value chain for reuse, recycling, and proper disposal

Plantspoweredby 100%

renewableenergy

Final landfill site

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Logistics Center

An integrated nationwide contractor network

Kasukabe Plant(ORIX Eco Services Corporation)

Recycling, collection, manual dismantling, data erasure, and commoditization of office automation and IT equipment

Funabashi Plant (ORIX Eco Services Corporation)

Industrial waste collection, transportation, and disposal of waste products

Yorii Plant (ORIX Environmental Resources

Management Corporation)

Complete recycling of waste items

Biogas power generation facility (ORIX Environmental Resources

Management Corporation)

Japan’s largest dry methane fermentation biogas power generation facility is set to start operation in 2021

Kobe Stockyard(ORIX Eco Services Corporation)

Ichikawa Stockyard (ORIX Eco Services Corporation)

Unwanted items: Reuse and recycling, collection and inspection, and data erasure

“Ecoport” controlled-type final disposal site(Zeeklite Co., Ltd.)

Powering OES Recycling Plantswith 100% Renewable Energy

There is growing societal demand for environment friendly initiatives such as reductions in CO2. As such, OES has decided to convert its two recycling plants—Funabashi Plant and Kasukabe Plant—to use electrical power generated from 100% renewable energy (including the use of non-fossil certified renewable energy sources); they are therefore now powered by CO2-free electricity. In the future, OES plans to source the electrical power used by these recycling plants from Agatsuma Biomass Power Plant and other renewable energy power plants owned by ORIX Group.

ORIX Eco Services Corporation

Powered by 100% renewable energy, OES recycling plants contribute to reductions in CO2

T O P I C S

Provision of a nationwide network supporting processing of unwanted items

OES has built and provides a nationwide network that collectively supports the collection, reuse, recycling, and proper disposal of unwanted items across Japan. Through a network comprising collection and transport companies, used equipment dealers, intermediate waste processors and recycling companies, OES supports customers in building an optimal waste disposal and recycling governance framework.

Nationwide recycling system ORIX Eco Services Corporation

OES is operating a metal recycle business recovering useful metallic resources.

OES operates intermediate metal waste processing facilities in Funabashi City, Chiba Prefecture and in Kasukabe City, Saitama Prefecture, centering on disposal of metals such as office equipment and machinery. The facilities conduct integrated operations ranging from collection, storage, primary processing, and recycling (either as products or materials). OES aims to advanced recycling facilities by selecting high-quality metal materials through manual dismantling and plant processing sorting functions and so on. Sorting of metal materials (Funabashi Plant)

ORIX Eco Services CorporationMetal recycling

As a private finance initiative (PFI) with Saitama Prefecture, OERM operates a zero-emission*1 plant that utilizes the latest thermal decomposition and gasification methods in the town of Yorii, Saitama Prefecture. Its defining feature is that it melts waste at roughly 2,000 °C, which enables all of the waste to be recycled. Recycled materials include slag and metals, which are recovered, and refined syngas, which is used as fuel for highly-efficient power generation at an onsite generator.The plant handles not only industrial waste, but is also used to process general waste such as household trash in volumes that have exceeded the treatment capabilities of processing facilities run by municipalities and the like. When entrusted with this kind of processing, we cooperate with major private sector processing plant operators*2 to build a backup system. This enables us to offer stable processing for a wide area through private contractors because there are many occasions where large quantities need to be processed in a short time frame.Zeeklite is a subsidiary of OERM, operates one of the largest controlled landfills in Japan. Our organization therefore provides final disposal as well as waste incineration and melting at the Yorii Plant, making us a single source that can address a wide range of corporate and local government waste requirements.

Providing incineration, melting, and final disposal of trash services

ORIX Environmental Resources Management CorporationZeeklite Co., Ltd

*1 Zero-emission refers to recycling resources by making effective use of all waste as raw material without emitting any unusable waste. *2 Prior consultation with local and regional authorities is required.

Recycling and final disposal of waste

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ContactCorporate Communications Department

ORIX Corporation

World Trade Center Building, 2-4-1 Hamamatsucho,

Minato-ku, Tokyo 105-6135, Japan

TEL: +81-3-3435-3167

URL: https://www.orix.co.jp/grp/en/ 2020-3