ORIX Corporation

ORIX Corporation(TSE: 8591; NYSE: IX)

Analysis of Annual

Consolidated Financial Results for

the Fiscal Year Ended March 31, 2003

(April 25, 2003)

•Safe Harbor StatementThese 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 United States Securities and Exchange Commission.

•U.S. HoldersThe Company expects that it will be a “passive foreign investment company”(PFIC) 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. Investors should consult their tax advisors with respect to such rules, which are summarized in the Company’s annual report.

Disclaimer

Slide #(1) Financial Summary ……………………………………………….. 1

Net Income & ROE (Graph and Table)……………………………....2Total Assets & ROA (Graph)…………………………………..…… 3Forecasts for Year Ending March 31, 2004 (Graph)…..….………… 4

(2) Details of the Fourth Quarter and Annual Results…..…….…5-12(3) Key Financial Data

Direct Financing LeasesDirect Financing Leases: New Equipment Acquisitions (Graph)..…13Investment in Direct Financing Leases (Graph) …………………. 14Investment in Direct Financing Leases by Equip. Category (Table). 15Direct Financing Lease Revenues (Graph)………………………….16Operating LeasesOperating Leases: New Equipment Acquisitions (Graph)….………17Investment in Operating Leases (Graph) ..………….…………….. 18Investment in Operating Leases by Category (Table) …………….. 19Operating Lease Revenues (Graph)………………………………...20Interest on Loans & Investment SecuritiesInstallment Loans: New Loans Added (Graph)……..…….………..21Installment Loans (Graph) ………………………...…..………….. 22Installment Loans by Borrower Category (Table) ………....……… 23Interest on Loans (Graph)…………………..….……………………24Investment in Securities: New Securities Added (Graph) …….….. 25Investment in Securities (Graph)……………….…..……………… 26Investment in Securities by Security Category (Table) …………… 27 Interest on Investment Securities (Graph)…………………………..28Brokerage Commissions & Gains on Investment Securities (Graph)……………………………………………………………...29Life Insurance Premiums & Related Investment Income (Graph and Table)…………………………………………...…...…30

Slide #Other Operating Assets & RevenuesOther Operating Assets: New Assets Added (Graph)……..….…… 31Other Operating Assets (Graph)………………….…………………32Other Operating Revenues (Graph and Table)……………….……. 33Allowance for Doubtful Receivables on Direct Financing Leases & Possible Loan Losses (Graph and Table)……….………….…. 34Equity in Net Income (Loss) of & Gain (Loss) on Sales of Affiliates (Graph)………………………….………………………..35Funding …………………….…………………………………….. 36Direct Funding by Funding Source (Graph)….……………….…… 37Composition of Debt (Table)……………………….………………38Direct Funding & Direct Funding Ratio (Table)……….………….. 39ORIX’s Domestic CP & Bond Issuance (Table)………….………. 40Shareholders’ Equity & Shareholders’ Equity Ratio (Graph)……... 41Total Debt & Debt-to-Equity Ratio (Graph)…………………….… 42 Principal Credit Ratings…………………………….……….………43Segment InformationDomestic Operations

Corporate Finance (Graph)…………………….………..……… 44Equipment Operating Leases (Graph)…..……………..………. 45Real Estate -Related Finance (Graph)…….……...………………46Real Estate (Graph)………………………………..…………… 47Life Insurance (Graph)……………………………………..……48Other (Graph)…………………………………..………...…..… 49

Foreign OperationsThe Americas (Graph)…………….………………………….… 50Asia and Oceania (Graph)………..…………………………….. 51Europe (Graph)……………………………………………….… 52

(4) Additional Data…………………………….……………………… 53

Table of Contents

Change on

Change onChange on

Average Rate: 03/3= 122.13 JPY; 02/3= 125.75 JPY (2.9% appreciation)Yen/DollarExchange Rate

7.9%8.5%Shareholders’ Equity Ratio9.3

(2002/3)0.67%8.4%

(2002/3)Down 7%Down 7%(2002/3)

Down 25%Down 37%

Up 10%

Up 4%

(2002/3)

0.49%ROA(2003/3)

8.4D/E Ratio (Times)

(2003/3)6.0%ROE

Period End Rate: 03/3= 120.20 JPY; 02/3=133.25 JPY (9.8% appreciation)

(2003/3)5,168.3Operating Assets5,931.1Total Assets

46.3--15.0IBIT 30.2--5.0Net Income

645.6Up 29%203.3Expenses

683.6Up 4%185.7 Revenues

(2003/3)(2002/1-3)(2003/1-3)

(1) Financial SummaryFor the Fiscal Year Ended March 31, 2003

(JPY billion)

*Unless otherwise stated all figures are in Japanese yen (JPY)1

Net Income & ROE

30.225.6

30.634.2

40.3 6.0%

8.4%7.7%8.1%8.0%

99/3 00/3 01/3 02/3 03/3

Net Income (JPY billion) ROE (%)

01/4-6 01/7-9 01/10-12 02/1-3 02/4-6 02/7-9 02/10-12 03/1-3Net Income 10,442 9,594 9,262 10,971 16,885 5,878 12,449 -4,969

(JPY million)

2

Total Assets & ROA

6,350.25,591.35,341.55,347.6

5,931.1

99/3 00/3 01/3 02/3 03/3

Total Assets (JPY billion) ROA (%)

0.47% 0.57%0.62% 0.67%

3

0.49%

Forecasts for Year Ending March 31, 2004

52.059.2

73.0

87.0

46.3

30.634.2

40.3

30.2

48.0

616.5 586.1658.5 683.6

730.0

00/3 01/3 02/3 03/3 04/3

Income before Income Taxes Net Income Total RevenuesForecast

(JPY billion)

4

(2) Details of the Fourth Quarter and Annual Results New Business Volumes

2002.1-3 2003.1-3 2002.3 2003.3

4Q 4Q Change Change (%) 12 Months 12 Months Change Change (%)

Direct Financing Leases: New receivables added 228,683 223,680 (5,003) -2% 1,083,070 1,000,896 (82,174) -8%

Japan 175,567 161,755 (13,812) -8% 877,969 758,786 (119,183) -14%

Overseas 53,116 61,925 8,809 17% 205,101 242,110 37,009 18%

Direct Financing Leases: New equipment acquisitions 216,576 200,352 (16,224) -7% 980,379 895,848 (84,531) -9%

Japan 167,821 144,525 (23,296) -14% 798,712 675,563 (123,149) -15%

Overseas 48,755 55,827 7,072 15% 181,667 220,285 38,618 21%

Installment Loans: New loans added 326,699 297,340 (29,359) -9% 1,340,400 1,268,170 (72,230) -5%

Japan 291,529 264,242 (27,287) -9% 1,144,667 1,100,887 (43,780) -4%

Overseas 35,170 33,098 (2,072) -6% 195,733 167,283 (28,450) -15%

Operating Leases: New equipment acquisitions 18,376 84,528 66,152 360% 146,203 173,567 27,364 19%

Japan 11,012 74,688 63,676 578% 116,933 143,000 26,067 22%

Overseas 7,364 9,840 2,476 34% 29,270 30,567 1,297 4%

Investment in Securities: New securities added 77,599 110,172 32,573 42% 348,347 231,294 (117,053) -34%

Japan 74,195 107,807 33,612 45% 304,248 214,477 (89,771) -30%

Overseas 3,404 2,365 (1,039) -31% 44,099 16,817 (27,282) -62%

Other Operating Assets: New assets added 82,687 37,980 (44,707) -54% 204,121 116,736 (87,385) -43%

Japan 75,982 30,948 (45,034) -59% 180,903 99,330 (81,573) -45%

Overseas 6,705 7,032 327 5% 23,218 17,406 (5,812) -25%

JPY Million

In Japan, the acquisition of KDDI Development Corp. (about 33 billion yen) this 4Q added to new receivables in the 4Q and on the fiscal year. Overseas, automobile operating leases were strong in Asia and Oceania in both the 4Q and on the fiscal year.

In Japan, the decrease over the fiscal year was due to the reduced investment in securities by ORIX Life Insurance as part of its portfolio management. However the increase on the 4Q was due to a shift in the mix of securities as part of portfolio management. Overseas fell sharply due to lower investment in securities in the U.S. in both the 4Q and on the fiscal year.

In Japan, there was a large increase in new receivables in the last 4Q and the fiscal year due to the purchase of properties for a REIT that was subsequently listed in the 1Q of this fiscal year. Overseas, the decrease on the year was due to the reduction of new real estate developments in the U.S.

YoY Change YoY ChangeNotes

In Japan, consumer card loans and housing loans as well as installment loans to corporate customers continued to do well (about 160 billion yen of housing loans were purchased in the 3Q of the last fiscal year). Overseas, the U.S. was down in both the 4Q and on the fiscal year.

In Japan, Hiroshima General Leasing (renamed Momiji Lease) (about 23 billion yen) was acquired in the previous 4Q while no such acquisitions took place this 4Q. The acquisition of Nittetsu Lease (about 120 billion yen) in the 2Q added to new receivables, but the acquisition of IFCO in the 2Q of the previous fiscal year (about 250 billion yen) was larger, resulting in a decline on the year. Overseas, an increase in new business volumes in Asia and Oceania resulted in growth for the 4Q and the fiscal year.

5

Operating Assets

Change Change (%) Change Change (%)

Investment in Direct Financing Leases 1,658,669 1,634,494 1,572,308 (86,361) -5% (62,186) -4%

Japan 1,255,537 1,278,175 1,237,141 (18,396) -1% (41,034) -3%

Overseas 403,132 356,319 335,167 (67,965) -17% (21,152) -6%

Installment Loans 2,273,280 2,374,664 2,288,039 14,759 1% (86,625) -4%

Japan 1,840,289 1,986,182 1,954,640 114,351 6% (31,542) -2%

Overseas 432,991 388,482 333,399 (99,592) -23% (55,083) -14%

Investment in Operating Leases 474,491 454,468 529,044 54,553 11% 74,576 16%

Japan 338,719 340,997 369,489 30,770 9% 28,492 8%

Overseas 135,772 113,471 159,555 23,783 18% 46,084 41%

Investment in Securities 861,336 695,319 677,435 (183,901) -21% (17,884) -3%

Japan 651,702 505,995 497,829 (153,873) -24% (8,166) -2%

Overseas 209,634 189,324 179,606 (30,028) -14% (9,718) -5%

Other Operating Assets 260,373 142,856 101,481 (158,892) -61% (41,375) -29%

Japan 248,216 132,847 91,851 (156,365) -63% (40,996) -31%

Overseas 12,157 10,009 9,630 (2,527) -21% (379) -4%

Operating Assets 5,528,149 5,301,801 5,168,307 (359,842) -7% (133,494) -3%

2002.3 2002.12Notes

In Japan, although Nittetsu Lease was acquired in the 2Q (about 120 billion yen), about 130 billion yen in leasing assets were securitized on the year (about 25 billion yen in the 4Q), resulting in a slight decrease in assets on 2002.3. Overseas, the appreciation of the yen, a decline in leasing assets at a U.S. subsidiary and securitization (about 4 billion yen in the 4Q and 16 billion yen over the fiscal year) resulted in the decline on 2002.3.In Japan, consumer card loans and installment loans to corporate customers expanded compared to 2002.3, but about 51 billion yen of loans were securitized in the 4Q (about 79 billion yen for the fiscal year) causing a decline on 2002.12. Overseas, the appreciation of the yen, the sale of loan assets and fewer new receivables led to a decrease compared to 2002.3.

In Japan, the increase was due to the 4Q acquisition of KDDI Development Corp. Overseas, the reclassification of real estate property (mainly from advances to operating leases) caused the overall increase on 2002.3.

In Japan, the balance dropped on 2002.3 as a result of a change in the portfolio of ORIX Life Insurance (from securities to loans). Overseas, the decline on 2002.3 was due to the appreciation of the yen and fewer new investments in securities.

In Japan, assets declined on 2002.3 due to the listing and sale of shares in a REIT in the 1Q, which reduced assets by about 100 billion yen and due to write-downs of long-lived assets in the 2Q and 4Q. Overseas, the appreciation of the yen resulted in the decline on 2002.3.

JPY Million2002.3 2002.12 2003.3

6

Revenues

2002.1-3 2003.1-3 2002.3 2003.3


Direct Financing Leases 31,942 29,569 (2,373) -7% 121,914 122,928 1,014 1%

Japan 22,923 22,099 (824) -4% 84,151 91,443 7,292 9%

Overseas 9,019 7,470 (1,549) -17% 37,763 31,485 (6,278) -17%

Operating Leases 30,429 35,854 5,425 18% 120,807 127,608 6,801 6%

Japan 21,790 22,511 721 3% 87,732 87,652 (80) 0%

Overseas 8,639 13,343 4,704 54% 33,075 39,956 6,881 21%

Interest on Loans and Investment Securities 34,085 36,154 2,069 6% 121,962 131,590 9,628 8%

Interest on Loans 28,724 32,450 3,726 13% 99,732 115,610 15,878 16%

Japan 22,542 25,678 3,136 14% 70,135 89,068 18,933 27%

Overseas 6,182 6,772 590 10% 29,597 26,542 (3,055) -10%

Interest on Investment Securities 5,361 3,704 (1,657) -31% 22,230 15,980 (6,250) -28%

Japan 787 205 (582) -74% 3,533 866 (2,667) -75%

Overseas 4,574 3,499 (1,075) -24% 18,697 15,114 (3,583) -19%

Brokerage Commissions and Gains on Investment Securities

6,605 1,575 (5,030) -76% 18,367 10,857 (7,510) -41%

Brokerage Commissions 571 521 (50) -9% 2,940 2,400 (540) -18%

Gains on Investment Securities 6,034 1,054 (4,980) -83% 15,427 8,457 (6,970) -45%

Life Insurance Premiums and Related Investment Income 36,673 38,358 1,685 5% 152,333 138,511 (13,822) -9%

Life Insurance Premiums 31,135 34,531 3,396 11% 135,479 122,963 (12,516) -9%

Related Investment Income 5,538 3,827 (1,711) -31% 16,854 15,548 (1,306) -8%

Residential Condominium Sales 17,639 19,441 1,802 10% 58,078 71,165 13,087 23%

Interest Income on Deposits 120 116 (4) -3% 1,374 526 (848) -62%

Other Operating Revenues 20,334 24,681 4,347 21% 63,627 80,460 16,833 26%

Japan 17,574 22,420 4,846 28% 51,652 70,545 18,893 37%

Overseas 2,760 2,261 (499) -18% 11,975 9,915 (2,060) -17%

Total Revenues 177,827 185,748 7,921 4% 658,462 683,645 25,183 4%

2002.3Notes

In Japan, although the amount of gains from securitization was lower (last 4Q: 4.3 billion yen; this 4Q: 0.4 billion yen; last fiscal year: 6.2 billion yen; this fiscal year: 3.2 billion yen) than in the previous fiscal year, the automobile leasing operations continued to perform well, with continued contributions from acquired leasing companies. Overseas, a decline in leasing assets in the U.S. resulted in a decline in both the 4Q and throughout the fiscal year.

JPY Million

2002.1-3

In Japan, contributions came from the listing of a REIT in the 1Q, revenues from companies in which investments were made in the the second half of the fiscal year as part of the corporate restructuring business, and fees from building maintenance and other real estate-related operations in both the 4Q and on the fiscal year. Overseas, the decrease was due to reclassification of real estate property from other operating revenues to operating leases.

Residential condominium development performed well in all four quarters.

In Japan, acquisitions made in the previous fiscal year contributed to earnings in the automobile rental operations. However, the fall in the utilization rate for precision measuring and other equipment resulted in little change compared with the previous fiscal year. Overseas, the increase in the 4Q and on the fiscal year was a result of the expansion of automobile operating leases in Asia and Oceania and due to the reclassification of real estate property (other operating revenues to operating leases) in the U.S.

Interest on Loans: In Japan, the increase in the 4Q and on the fiscal year was due to larger balances of consumer card loans, housing loans, and corporate installment loans, and due to higher gains from securitizing loans (last fiscal year: 3.1 billion yen; this fiscal year: 6.4 billion yen). Overseas, the decrease was due to lower interest rates and balance of loans in both the 4Q and on the fiscal year.

Interest on Investment Securities: Decreased due to the lower balance of securities and lower interest rates overseas in both the 4Q and on the fiscal year.

In Japan and overseas, revenues suffered in both the 4Q and the fiscal year due to the poor market environment.

Life insurance premiums decreased compared to the previous fiscal year due to a shift from savings-type to insurance-only life insurance products. Related investment income decreased due to the lower gains from the sale of securities (last fiscal year: 7.3 billion yen; this fiscal year: 3.4 billion yen).

7

Expenses

2002.1-3 2003.1-3 2002.3 2003.3


Interest Expense 18,677 17,731 (946) -5% 90,348 71,990 (18,358) -20%

Depreciation—Operating Leases 20,234 21,968 1,734 9% 77,047 80,565 3,518 5%

Life Insurance Costs 32,855 34,468 1,613 5% 139,786 125,684 (14,102) -10%

Costs of Residential Condominium Sales 15,519 17,461 1,942 13% 49,517 60,769 11,252 23%

Other Operating Expenses 8,653 13,096 4,443 51% 29,614 41,359 11,745 40%

Selling, General and Administrative Expenses 35,763 39,172 3,409 10% 126,316 144,271 17,955 14%

Provision for Doubtful Receivables and Possible Loan Losses

19,426 17,318 (2,108) -11% 51,367 54,706 3,339 7%

Write-downs of Long-Lived Assets 1,330 36,017 34,687 2608% 2,716 50,682 47,966 1766%

Write-downs of Securities 6,688 6,409 (279) -4% 19,742 14,325 (5,417) -27%

Foreign Currency Transaction Loss (Gain), Net (1,125) (353) 772 - (1,360) 1,211 2,571 -

Total Expenses 158,020 203,287 45,267 29% 585,093 645,562 60,469 10%

Additional provisioning of about 5.3 billion yen necessary due to the recent poor state of the airline industry in North America.

2002.1-3Notes

Decline on the fiscal year due to a decrease in debt and efficient fund procurement from the capital markets.

Only slight change as there was no large change in the volume of operating leases for the fiscal year.

JPY Million

Large increase due to conservative estimates for future cash flows in consideration of present market conditions.

2002.3

Write-downs of securities necessary this fiscal year due to the poor stock market performance, but down on the previous fiscal year.

Same as revenues.

Same as revenues.

Same as revenues.

Increased on the year as a result of an increase in the number of consolidated companies and costs associated with consumer lending.

8

Net Income

2002.1-3 2003.1-3 2002.3 2003.3


Operating Income 19,807 (17,539) (37,346) - 73,369 38,083 (35,286) -48%

Equity in Net Income (Loss) of and Gain (Loss) on Sales of Affiliates

(419) 2,529 2,948 - (330) 8,205 8,535 -

Income before Income Taxes 19,388 (15,010) (34,398) - 73,039 46,288 (26,751) -37%

Provision for Income Taxes 8,417 (6,827) (15,244) - 32,903 21,196 (11,707) -36%

Income (Loss) before Extraordinary Gain and Cumulative Effect of a Change in Accounting Priciple

10,971 (8,183) (19,154) - 40,136 25,092 (15,044) -37%

Extraordinary Gain - 3,214 3,214 - - 3,214 3,214 -

Cumulative Effect of a Change in Accounting Principle - - - - 133 1,937 1,804 1356%

Net Income 10,971 (4,969) (15,940) - 40,269 30,243 (10,026) -25%

NotesJPY Million

2002.1-3

Recognition of negative goodwill for an equity method affiliate.

2002.3

9

Segment Profit

2002.1-3 2003.1-3 2002.3 2003.3


Domestic Segments Corporate Finance 12,620 8,096 (4,524) -36% 48,066 44,158 (3,908) -8%

Equipment Operating Leases 2,419 (170) (2,589) - 9,906 4,402 (5,504) -56%

Real Estate-Related Finance 3,499 6,908 3,409 97% 5,654 19,572 13,918 246%

Real Estate 1,539 (34,975) (36,514) - 5,842 (39,441) (45,283) -

Life Insurance 1,875 1,842 (33) -2% 5,764 4,791 (973) -17%

Other 1,697 (1,703) (3,400) - 4,941 8,452 3,511 71%

Sub-Total 23,649 (20,002) (43,651) - 80,173 41,934 (38,239) -48%

Overseas Segments The Americas

1,148 1,922 774 67% 810 1,332 522 64%

Asia and Oceania 937 3,906 2,969 317% 5,433 9,765 4,332 80%

Europe (874) (14) 860 - 600 (736) (1,336) -

Sub-Total 1,211 5,814 4,603 380% 6,843 10,361 3,518 51%

Total Segment Profits (Income before Income Taxes) 24,860 (14,188) (39,048) - 87,016 52,295 (34,721) -40%

Reconciliation of Segment Totals to Consolidated Amounts (5,472) (822) 4,650 - (13,977) (6,007) 7,970 -

Consolidated Amounts 19,388 (15,010) (34,398) - 73,039 46,288 (26,751) -37%

Notes

Decreased due to fewer gains from securitization than in the previous fiscal year (last fiscal year: 6.2 billion yen; this fiscal year: 3.2 billion yen).

Declined compared to the previous fiscal year due to lower utilization rates for rentals of precision measuring equipment. Rates improved somewhat in the 4Q, but provisioning was required for investments made in the airline industry.

Increased due to gains from the listing of a REIT in the 1Q, along with strong performance of housing loans, non-recourse loans, loan servicing operations, and gains from the sale of real estate-related assets and from the securitization of loan receivables.

Decrease resulted from the write-downs of long-lived assets.

JPY Million

Increased this fiscal year due to generally good performance at most subsidiaries and affiliates, especially in the automobile leasing operations.

There were gains on the sale of investment securities in the 1Q of the last fiscal year, however, no such gain was made this fiscal year, which combined with a decline in assets to reduce earnings for this fiscal year.

Fewer gains on the sale of securities this fiscal year resulted in the decline.

Increased due to contributions from card loan business, but provisioning for loans to Air Canada and other airline related companies resulted in a decline in the 4Q.

Athough there were lower earnings in the commercial mortgage-backed securities related business, lower losses at a leasing subsidiary and an increase in profits at an equity method affiliate led to an increase over the last fiscal year.

2002.1-3 2002.3

10

Segment Revenues

2002.1-3 2003.1-3 2002.3 2003.3


Domestic Segments Corporate Finance 33,018 29,869 (3,149) -10% 118,794 125,560 6,766 6%

Equipment Operating Leases 16,622 17,789 1,167 7% 67,319 67,655 336 0%

Real Estate-Related Finance 11,330 14,634 3,304 29% 31,582 51,589 20,007 63%

Real Estate 28,123 28,835 712 3% 85,516 104,454 18,938 22%

Life Insurance 36,573 38,358 1,785 5% 154,296 138,511 (15,785) -10%

Other 15,222 19,079 3,857 25% 49,139 61,238 12,099 25%

Sub-Total 140,888 148,564 7,676 5% 506,646 549,007 42,361 8%

Overseas Segments The Americas 19,034 17,622 (1,412) -7% 75,195 57,909 (17,286) -23%

Asia and Oceania 13,642 14,044 402 3% 56,677 55,425 (1,252) -2%

Europe 2,578 3,718 1,140 44% 14,716 13,311 (1,405) -10%

Sub-Total 35,254 35,384 130 0% 146,588 126,645 (19,943) -14%

Total Segment Revenues 176,142 183,948 7,806 4% 653,234 675,652 22,418 3%

Reconciliation of Segment Totals to Consolidated Amounts 1,685 1,800 115 -131% 5,228 7,993 2,765 53%

Consolidated Amounts 177,827 185,748 7,921 4% 658,462 683,645 25,183 4%

Increased this fiscal year due to a rise in residential condominium sales and contributions from rental property revenues and fee income received for building maintenance and other real estate-related operations.Decreased this fiscal year due to the shift from savings-type to insurance-only life insurance products.

Increased in the 4Q and the fiscal year due to contribution from the card loan operations including proceeds from securitization.

Decreased in the 4Q and the fiscal year due to lower balance of operating assets, which resulted in lower revenues for direct financing leases, interest on installment loans and investment securities. Contributions came from the automobile leasing operations and corporate lending. However, there were proceeds from the sale of a ship in the 1Q of last fiscal year, while there were no such transactions this fiscal year, which resulted in lower revenues for this fiscal year.

Interest on loans and investment securities fell this fiscal year due to fewer assets.

JPY MillionNotes

Increased this fiscal year due to contributions from M&A made last fiscal year.

Revenues for the rental of precision measuring equipment increased somewhat in the 4Q, but there was little change compared with the previous fiscal year. Large increase due to a higher balance of corporate non-recourse loans and housing loans, increased revenues from loan servicing, and the sale of real estate-related assets.

2002.1-3 2002.3

11

Segment Assets

Change Change (%) Change Change (%)

Domestic Segments Corporate Finance 1,960,380 1,963,548 1,893,422 (66,958) -3% (70,126) -4%

Equipment Operating Leases 147,444 145,234 144,397 (3,047) -2% (837) -1%

Real Estate-Related Finance 1,012,896 908,821 931,513 (81,383) -8% 22,692 2%

Real Estate 326,473 307,599 303,838 (22,635) -7% (3,761) -1%

Life Insurance 543,738 578,744 579,805 36,067 7% 1,061 0%

Other 352,433 398,435 387,978 35,545 10% (10,457) -3%

Sub-Total 4,343,364 4,302,381 4,240,953 (102,411) -2% (61,428) -1%

Overseas Segments The Americas 794,330 691,100 618,148 (176,182) -22% (72,952) -11%

Asia and Oceania 435,093 454,123 437,874 2,781 1% (16,249) -4%

Europe 113,844 78,376 75,207 (38,637) -34% (3,169) -4%

Sub-Total 1,343,267 1,223,599 1,131,229 (212,038) -16% (92,370) -8%

Total Segment Assets 5,686,631 5,525,980 5,372,182 (314,449) -6% (153,798) -3%

Reconciliation of Segment Totals to Consolidated Amounts (158,482) (224,179) (203,875) (45,393) - 20,304 -

Consolidated Amounts 5,528,149 5,301,801 5,168,307 (359,842) -7% (133,494) -3%

Notes

The acquisition of Nittetsu Lease added to assets, but about 130 billion yen in assets were securitized, resulting in a slight decrease in assets overall on 2002.3.

Increased slightly on 2002.12 due to the acquisition of KDDI Development Corp. in the 4Q, but decreased on 2002.3 due to the listing of a REIT in the 1Q, which reduced assets by about 100 billion yen.

Decreased due to reduction in leasing assets and the appreciation of the yen.

Decreased due to the sale of aircraft and lower balance of loans and investment securities.

Decreased on 2002.3 due to the write-downs of long-lived assets.

2002.3 2002.12

Decreased on 2002.12 due to securitization of loans, but increase on 2002.3 due to larger balance of card loans and increase of investment related to the corporate restructuring business.

JPY Million2002.3 2002.12 2003.3

12

(3) Key Financial DataDirect Financing Leases: New Equipment Acquisitions

675.6

289.7 274.7

203.5

220.3

798.7623.5 631.2 519.8

181.7

0

300

600

900

1,200

99/3 00/3 01/3 02/3 03/3

913.2 905.9

723.3

(JPY billion)

980.4895.8

OverseasJapan 13

Investment in Direct Financing Leases

472.3426.9 464.4 403.1 335.2

1,480.5 1,318.0 1,193.3 1,255.5 1,237.1

0

500

1,000

1,500

2,000

2,500

99/3 00/3 01/3 02/3 03/3

1,952.81,745.0

1,657.7

(JPY billion)

1,658.7 1,572.3

OverseasJapan 14

Investment in Direct Financing Leases by Equipment Category

1,952,842

(236,293)

29,374

58,827

2,100,934

99/3

1,744,953

(220,278)

26,042

57,900

1,881,289

00/3

1,657,709

(195,098)

24,616

56,566

1,771,625

01/3

1,658,669

(172,490)

23,224

80,206

1,727,729

02/3

(164,628)Unearned Lease Income

Total

Initial Direct Costs

Estimated Residual Value

Minimum Lease Payments Receivable

1,572,308

23,286

93,002

1,620,648

03/3

362,597319,245342,123383,761377,110Other

516,646603,843415,246398,521414,093Transportation Equipment

Total

Commercial Services Equipment

Industrial Equipment

Information-Related & Office Equipment

1,572,3081,658,6691,657,7091,744,9531,952,842

181,741186,115193,624194,809224,080

271,471286,942372,542394,581444,261

239,853262,524334,174373,281493,298

03/302/301/300/399/3

(JPY million)

15

Direct Financing Lease Revenues

96.9 86.9 77.4 84.2 91.4

46.343.9

44.6 37.8 31.5

0

50

100

150

200

99/3 00/3 01/3 02/3 03/3

143.2130.8

122.0

(JPY billion)

121.9 122.9

OverseasJapan

16

Operating Leases: New Equipment Acquisitions

66.5 70.4

114.8 116.9143.0

25.7 30.6

28.4 29.3

30.6

0

30

60

90

120

150

180

99/3 00/3 01/3 02/3 03/3

92.3101.0

143.2

(JPY billion)

146.2

173.6

OverseasJapan 17

Investment in Operating Leases

261.4 274.5 320.6 338.7 369.5

149.8 123.1130.5 135.8

159.6

0

200

400

600

99/3 00/3 01/3 02/3 03/3

411.2 397.6451.2

(JPY billion)

474.5

529.0

OverseasJapan 18

Investment in Operating Leases by Category

Total

Real Estate and Other

Measuring Equipment and Personal Computers

Transportation Equipment

529,044474,491451,171397,576411,156

283,163215,359208,145179,597170,718

70,98871,52777,80858,43158,552

174,893187,605165,218159,548181,886

03/302/301/300/399/3

(JPY million)

19

Operating Lease Revenues

60.8 71.1 83.6 87.7 87.7

31.629.5

29.9 33.1 40.0

020

406080

100

120140

99/3 00/3 01/3 02/3 03/3

92.4100.5

113.5

(JPY billion)

120.8127.6

OverseasJapan

20

Installment Loans: New Loans Added

572.0 654.2 658.2

1,144.7134.8

195.7

1,100.9

167.3

153.3 82.4

0

500

1,000

1,500

99/3 00/3 01/3 02/3 03/3

706.8807.5

740.6

(JPY billion)

1,340.41,268.2

OverseasJapan 21

Installment Loans

1,393.2 1,453.7 1,489.11,840.3

368.7 337.8 357.4

433.0

1,954.6

333.4

0

500

1,000

1,500

2,000

2,500

99/3 00/3 01/3 02/3 03/3

1,761.9 1,791.4 1,846.5

(JPY billion)

2,273.3 2,288.0

OverseasJapan 22

Installment Loans by Borrower Category

1,761,887

16,928

368,661

803,073

188,085

614,988

573,225

43,663

411,215

118,347

99/3

1,791,439

18,312

337,754

860,892

203,537

657,355

574,481

56,461

396,748

121,272

00/3

1,846,511

20,925

357,446

850,070

222,818

627,252

618,070

43,959

392,896

181,215

01/3

2,273,280

21,463

432,771

986,398

278,367

708,031

832,648

44,829

557,461

230,358

02/3

20,194Loan Origination Costs, Net

333,313Foreign Borrowers

1,098,324Sub-total

276,332

821,992

Domestic Commercial

Real Estate Related

Commercial & Industrial Companies

Total

Sub-total

Other

Domestic Consumer

Housing Loans

Card Loans

2,288,039

836,208

32,668

531,904

271,636

03/3

(JPY million)

23

Interest on Loans

51.1 53.0 58.170.1

89.1

36.9 30.4 27.3

29.6

26.5

0

20

40

60

80

100

120

99/3 00/3 01/3 02/3 03/3

88.0 83.3 85.4

(JPY billion)

99.7

115.6

OverseasJapan

24

Investment in Securities: New Securities Added

235.5315.6 304.2

214.5

66.5 108.8

81.6

224.5

16.8

44.1

0

100

200

300

400

500

99/3 00/3 01/3 02/3 03/3

302.0333.2

397.2

(JPY billion)

348.3

231.3

OverseasJapan 25

Investment in Securities

596.3731.4 651.7

497.8

121.4

162.0

210.7209.6

179.6

454.8

0

200

400

600

800

1,000

1,200

99/3 00/3 01/3 02/3 03/3

758.4

576.2

942.2

(JPY billion)

861.3

677.4

OverseasJapan26

Investment in Securities by Security Category

576,206

51,740

16,542

507,510

414

99/3

758,381

56,949

11,404

689,638

390

00/3

942,158

87,163

13,005

841,409

581

01/3

861,336

125,530

16,008

718,919

879

02/3

10,638Held-to-Maturity Securities

Total

Other Securities

Available-for-Sale Securities

Trading Securities

677,435

116,755

537,888

12,154

03/3

(JPY million)

27

Interest on Investment Securities

5.1 3.5

10.9 12.8

18.9

15.1

18.7

0

10

20

30

99/3 00/3 01/3 02/3 03/3

1.6 1.3 0.9

12.514.1

24.0

(JPY billion)

22.2

16.0

OverseasJapan

28

Brokerage Commissions & Gains on Investment Securities

6.2

16.6

8.8

15.4

8.5

3.1

3.3

2.9

1.2

2.4

0

5

10

15

20

25

99/3 00/3 01/3 02/3 03/3

Gains on Investment Securities Brokerage Commissions

7.4

19.7

12.1

(JPY billion)

18.4

29

10.9

Life Insurance Premiums & Related Investment Income

186.6 190.8141.5 135.5 123.0

16.815.5

16.9

15.19.6

0

50

100

150

200

250

99/3 00/3 01/3 02/3 03/3Premiums Related Investment Income

196.3 205.8

158.3

99/3 00/3 01/3 02/3 03/3Life Insurance Premiums & Related Investment Income 196,259 205,829 158,314 152,333 138,511Life Insurance Costs 186,775 193,664 143,709 139,786 125,684Net 9,484 12,165 14,605 12,547 12,827

(JPY million)

(JPY billion)

152.3

30

138.5

Other Operating Assets: New Assets Added

16.4 32.1

180.9

99.338.3

42.6 17.4

86.4

23.2

23.4

0

50

100

150

200

250

99/3 00/3 01/3 02/3 03/3

70.4

39.7

129.0

(JPY billion)

204.1

116.7

OverseasJapan 31

Other Operating Assets

68.7 62.8106.8

248.2

91.9

12.2

4.7 9.6

25.29.6

0

50

100

150

200

250

300

99/3 00/3 01/3 02/3 03/3

73.3 72.5

132.0

(JPY billion)

260.4

101.5

OverseasJapan 32

Other Operating Revenues(Includes Residential Condominium Sales)

44.9 51.4 59.1

109.7141.7

12.0

9.3

9.9

7.02.7

0

20

40

60

80

100

120

140

160

99/3 00/3 01/3 02/3 03/3

Japan Overseas

47.558.4

68.3

(JPY billion)

121.7

00/3 01/3 02/3 03/3Residential Condominium Sales 35,291 36,928 58,078 71,165Other 23,118 31,403 63,627 80,460Total 58,409 68,331 121,705 151,625

(JPY million)

33

151.6

0

40

80

120

160

99/3 00/3 01/3 02/3 03/3

Allowance for Doubtful Receivables on Direct Financing Leases & Possible Loan Losses

99/3 00/3 01/3 02/3 03/3Beginning Balance 145,741 132,606 136,939 141,077 152,887Provisions Charged to Income 51,845 45,573 44,584 51,367 54,706Charge-Offs (Net) (70,306) (37,343) (46,306) (49,340) (76,564)Other 5,326 (3,897) 5,860 9,783 2,117Ending Balance 132,606 136,939 141,077 152,887 133,146

(JPY million)

(JPY billion)

132.6 136.9 141.1152.9

34

133.1

Equity in Net Income (Loss) of & Gain (Loss) on Sales of Affiliates

8.2

-0.3

2.1

-0.8

-3.7-6

-3

0

3

6

999/3 00/3 01/3 02/3 03/3

(JPY billion)

35

Funding

726.9

795.5

59.9%

56.7%

4,070.5

2001/3

Available Credit

Credit Lines

797.4849.9

862.1933.6Commitment Line

71.8%63.1%Share of Long-Term Debt

48.4%52.7%Direct Funding Ratio

4,239.54,679.6Total Funding (includes deposits from OTB)

2003/32002/3

*Funding: Emphasis is being placed on obtaining a balance between direct and indirect funding.

*Liquidity: To sustain a high degree of liquidity, ORIX has been increasing the ratio of long-term debt.

Note: OTB stands for ORIX Trust and Banking

(JPY billion)

36

Direct Funding by Funding Source

52.7%48.4%48.9%

56.8% 56.7%

0

500

1,000

1,500

2,000

2,500

3,000

99/3 00/3 01/3 02/3 03/3

CP

ABS (Long-term)

Bonds

MTN

Deposits

Direct FundingRatio

2,277.92,088.3

2,310.0

(JPY billion)

2,466.0

2,052.5

37

Composition of Debt

4,274,280

53,269

2,036,028

1,014,416

574,790

252,579

194,243

2,184,983

1,171,582

1,013,401

99/3

4,010,468

154,923

1,942,784

797,276

761,253

328,221

56,034

1,912,761

935,326

977,435

00/3

4,070,545

178,314

2,330,159

1,113,071

795,500

349,378

72,210

1,562,072

647,461

914,611

01/3

4,679,566

225,243

2,809,861

1,582,074

862,687

324,369

40,731

1,644,462

631,529

1,012,933

02/3

2,856,613Long-Term Debt

262,467*Deposits

1,593,879

894,038

245,300

123,396

Borrowings from Financial Institutions

*Bonds

*Medium-Term Notes

*Asset-Backed Securities

Total Debt

Short-Term Debt

Borrowings from Financial Institutions

*Commercial Paper

4,239,514

1,120,434

593,171

527,263

03/3

*Direct Funding

(JPY million)

38

Direct Funding & Direct Funding Ratio

4,555,064

52.0%

2,369,066

280,784

48.9%

2,088,282

99/3

4,421,579

60.8 %

2,688,977

411,111

56.8%

2,277,866

00/3

4,472,154

60.6%

2,711,622

401,609

56.7 %

2,310,013

01/3


(including off-balance funding)

2,560,8922,968,749Direct Funding


508,428502,786Off-balance funding


4,747,9425,182,352Total Debt


Direct Funding

(“*” on slide 38)

2,465,963

02/3

2,052,464

03/3

(JPY million)

39

ORIX’s Domestic CP Issuance

373,600533,300585,300610,500558,400Direct Paper Issued in Japan

53%

1,005,300

02/3

68%

827,100

99/3

72%

851,500

00/3

64%

914,300

01/3

535,600Total CP Issuance in Japan*

Share of Direct Paper in Japan 70%

03/3

ORIX’s Domestic Bond Issuance (Excluding Convertible Bonds and CMBS)

370,000420,000355,000320,000280,000Bonds to Individuals in Japan

53%

794,100

02/3

48%

764,900

03/3

50%

560,200

99/3

45%

713,700

00/3

47%

755,500

01/3

Total Bond Issuance in Japan

Share of Bonds to Individuals

(JPY million)

(JPY million)

* Par Value

40

Shareholders’ Equity & Shareholders’ Equity Ratio

505.5502.5461.3

425.7

327.8

8.3%8.0%

6.1%

7.9%

99/3 00/3 01/3 02/3 03/3

Shareholders' Equity (JPY billion) Shareholders' Equity Ratio (%) 41

8.5%

Total Debt & Debt-to-Equity Ratio

99/3 00/3 01/3 02/3 03/3

Long-Term Debt

Short-Term Debt

Deposits

Debt-to-Equity Ratio (Times)

4,274.34,010.5 4,070.5

(JPY billion)

4,679.6

13.0

9.4 8.8 9.3

* D/E Ratio = (Long-Term Debt + Short-Term Debt + Deposits)/Shareholders’ Equity

4,239.5

42

8.4

Principal Credit Ratings

J-1+a-1+Short-Term Debt (CP)

Long-Term Debt Baa3BBBAA-AA-

Moody’sS&PJCRR&I

43

1. Corporate Finance: Direct financing leases and lending operations other than real estate lending

118.8125.6

113.1121.4122.6

44.248.144.440.935.2

1,893.41,960.41,889.51,968.62,046.5

99/3 00/3 01/3 02/3 03/3

Revenues Segment Profit (Loss) Segment Assets

Domestic Operations

(JPY billion)

44

2. Equipment Operating Leases: Includes precision measuring equipment, information related equipment, and automobile leases

67.3 67.761.753.051.0

4.49.911.27.86.9

144.4147.4134.3

113.4109.8

99/3 00/3 01/3 02/3 03/3


(JPY billion)

45

3. Real Estate-Related Finance: Corporate real estate-related finance and consumer housing loans

31.6

51.6

24.317.317.7 19.6

5.71.9

-3.4-11.0

931.5

573.8

1,012.9

597.3 606.8

99/3 00/3 01/3 02/3 03/3


(JPY billion)

46

4. Real Estate: Residential subdivision developments, and rental and management of office buildings, hotels, training centers and golf courses

39.1 44.9 48.4

104.585.5

-2.2 -8.2 -4.6

5.8

-39.4

273.5 276.5310.3 326.5

303.8

99/3 00/3 01/3 02/3 03/3


(JPY billion)

47

5. Life Insurance: Direct/agency life insurance sales and related activities

195.5 204.7

157.6138.5

154.3

5.86.05.53.8 4.8

334.8425.3

543.9 543.7 579.8

99/3 00/3 01/3 02/3 03/3


(JPY billion)

48

6. Other: Includes securities transactions, venture capital operations, consumer card loan operations and new businesses

22.730.9

36.2

61.249.1

-4.3 -1.0

1.0 4.9 8.5

248.9 242.3 284.8352.4 388.0

99/3 00/3 01/3 02/3 03/3


(JPY billion)

49

7. The Americas

68.8 74.5 79.4

57.9

75.2

20.6 18.88.9

0.8 1.3

634.1691.4

804.1 794.3

618.1

99/3 00/3 01/3 02/3 03/3


Foreign Operations

(JPY billion)

50

8. Asia and Oceania

51.2 49.7 48.755.456.7

-11.7

3.4 1.2 5.4 9.8

440.9369.5

402.7435.1 437.9

99/3 00/3 01/3 02/3 03/3


(JPY billion)

51

9. Europe

23.818.3

15.2 13.314.7

0.3 0.3 0.7 0.6

-0.7

178.6159.6 158.6

113.875.2

99/3 00/3 01/3 02/3 03/3


(JPY billion)

52

(4) Additional Data JPY millionAvailable-for-Sale Securities 2001.3 2002.3 2002.6 2002.9 2002.12 2003.3ORIX Life Insurance 532,670 438,523 377,191 328,570 332,338 318,679ORIX 86,045 65,093 52,638 44,028 39,596 32,144Venture capital 3,624 5,374 3,361 3,048 2,520 1,815CMBS 84,452 109,930 105,168 114,334 110,607 111,863High yield bonds 59,073 45,649 44,302 42,350 40,328 31,722Others 75,545 54,350 47,568 43,031 44,165 53,813Total 841,409 718,919 630,228 575,361 569,554 550,036Note: High yield bonds include trading securities.

Gross Unrealized Gains (Losses) 2001.3 2002.3 2002.6 2002.9 2002.12 2003.3ORIX Life Insurance 19,338 1,288 (534) (56) (764) (804)ORIX 29,466 20,702 19,873 12,925 10,064 9,053Venture capital 1,903 3,735 1,829 1,164 550 3CMBS 5,373 948 2,284 1,620 (51) 1,610High yield bonds (3,545) (3,318) (3,953) (5,636) (5,416) (2,768)Others 4,484 2,268 2,019 724 781 2,057Total 57,019 25,623 21,518 10,741 5,164 9,151

Gains on Investment Securities 2001.3 2002.3 2002.6 2002.9* 2002.12* 2003.3*ORIX 1,961 2,842 376 546 541 (267)Venture capital 542 3,626 1,125 1,385 1,346 1,470CMBS 2,424 1,356 0 1 66 64High yield bonds 194 329 526 506 479 1,121Others 3,682 7,274 2,326 4,146 4,971 6,069Total 8,803 15,427 4,353 6,584 7,403 8,457

Investments by ORIX Life Insurance 2001.3 2002.3 2002.6 2002.9 2002.12 2003.3Fixed-income securities 519,995 433,463 372,460 324,365 328,203 314,465Marketable equity securities 7,167 73 62 67 182 550Other securities 9,975 23,596 29,359 37,803 26,490 26,885Total investment in securities 537,137 457,132 401,881 362,235 354,875 341,900Other investments 6,749 86,606 95,712 208,748 223,869 237,905Total 543,886 543,738 497,593 570,983 578,744 579,805

Breakdown of Life Insurance-Related Investment Income 2001.3 2002.3 2002.6 2002.9* 2002.12* 2002.3*Life insurance-related investment income 16,786 16,854 4,201 8,584 11,721 15,548 Gains on investment securities, net 3,505 7,318 1,467 2,380 2,391 3,448 Interest on investment securities and others 13,281 9,536 2,734 6,204 9,330 12,100

Selling, General and Administrative Expenses 2001.3 2002.3 2002.6 2002.9* 2002.12* 2003.3*Personnel expenses 41,464 57,115 16,415 32,125 49,015 66,155Selling expenses 17,934 21,197 5,329 10,881 17,036 24,131Administrative expenses 39,299 45,310 11,718 25,244 36,691 50,913Depreciation, amortization and other expenses 2,459 2,694 701 1,579 2,357 3,072Total 101,156 126,316 34,163 69,829 105,099 144,271

Direct Financing Leases (DFL) 90+ Days Overdue 2001.3 2002.3 2002.6 2002.9 2002.12 2003.3 Japan 29,572 33,175 33,047 31,577 32,011 32,113 Overseas 23,943 34,749 29,343 25,425 20,312 15,712Total 53,515 67,924 62,390 57,002 52,323 47,825General Loans 90+ Days Overdue 84,827 74,199 68,186 66,979 62,734 60,587Impaired Loans (FASB 114) 120,090 113,000 109,463 95,689 96,633 97,278

General FASB114Beginning balance 50,837 56,188 45,862 152,887Provisions charged to income 16,978 23,497 14,231 54,706Charge-offs (25,445) (27,443) (23,676) (76,564)Other 218 2,243 (344) 2,117Ending balance 42,588 54,485 36,073 133,146Note: The "*" mark indicates the 6-, 9- and 12-month totals for Gains on Investment Securities, Breakdown of Life Insurance- Related Investment Income, Selling, General and Administrative Expenses, and Provisions and Charge-offs.

LoansDFL TotalProvisions and Charge-offs for 2003.3*

53

ORIX Corporation

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Transcript of ORIX Corporation