ORIX CorporationORIX Corporation · Head of the Treasury HeadquartersHead of the Treasury...

ORIX CorporationORIX CorporationORIX CorporationORIX Corporation(TSE: 8591; NYSE: IX)(TSE: 8591; NYSE: IX)

Consolidated Financial Results For the Consolidated Fiscal Year Ended March 31, 2013,

May 10, 2013

Haruyuki Urata Deputy President & CFOShintaro Agata Corporate Executive Vice President,

Head of the Treasury HeadquartersHead of the Treasury HeadquartersTakao Kato Corporate Senior Vice President,

Head of the Accounting Headquarters

Copyright © 2013 ORIX Corporation All rights reserved.

DisclaimerO C (“O “C ) f f These materials have been prepared by ORIX Corporation (“ORIX” or the “Company”) solely for your information and are subject to

change without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No representations, warranties or undertakings, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness, or correctness of the information or the opinions presented or contained in these materials.

These materials contain forward-looking statements that reflect the Company’s intent, belief and current expectations about future events and financial results. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. These forward-looking statements are not guarantees of future performance. They are based on a number of assumptions about the Company’s operations and are subject to risks, uncertainties and other factorsbeyond 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 recentcould 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.

Some of the financial information in these materials is unaudited.

These materials contain non-GAAP financial measures, including adjusted long-term and interest-bearing debt, adjusted total assets and adjusted ORIX Corporation shareholders‘ equity, as well as adjusted segment profit and other measures and ratios calculated on the basis thereof. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable financial measures included in our consolidated financial statements and presented in accordance with U.S. GAAP. Reconciliations of these non GAAP financial measures to the most directly comparable U S GAAP measures are included in theseReconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are included in these materials on pages 29 to 30.

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 rulesits 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

Copyright © 2013 ORIX Corporation All rights reserved. 1

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.

Contents

I. Overview P.3

II. Future Direction P.5

III. Segment Results and Strategies

IV M j I t t A ti iti

P.7

P 15IV. Major Investment Activities

V. Summary

P.15

P.16y

Appendix

P.16


I. Overview

FY13.3 Achieved 111.9bn yen in Net Income, up 34%YoY Announced acquisition of RobecoAnnounced acquisition of RobecoIncrease dividends from 90 to 130 yen

（JPY Bn）

FY14.3 Aim for 135bn yen in Net Income (21% increase)

*Net Income refers to Net Income

（Target）

Attributable to ORIX Corporation Shareholders

Per share data has been adjusted retrospectively to reflect the stock split on April 1 for all periods


split on April 1 for all periods presented

I. Overview Status of Shareholders’ Equity

Approx. 100bn yen added due to conversion of convertible bonds

Put to active and effective use as source for next growth

Employed Capital Ratio and ROE

Put to active and effective use as source for next growth

p y p（JPY Bn）

（Forecast）


II. Future Direction Acquisition of Robeco

Acquisition of world’s leading AM Company Acceleration of “Finance + Services” Further expansion of global business foundation

EuropeEurope

Americas

AsiaAsiaORIX OfficeRobeco Office

Middle EastJapan


p

5

II. Future Direction

I i t t th t t h “Fi S i ” Increase investments that match “Finance + Services,” both domestically and overseas

Take good risks nimbly by enhancing expertise

Create new market while shifting to new battlegroundCreate new market while shifting to new battleground

Aim to achieve 10% ROE in FY16.3


III. Segment Results and Strategies Segment Profits

All segments increased profits, Investment and Operation and Retail significantly grew profits in FY13.3

（JPY Bn）Trend in Segment Profits

（T ）


（Target）

7

III. Segment Results and Strategies Segment Assets

Increases in Maintenance Leasing, Retail, and Overseas Business

（JPY B ）

Trend in Segment Assets（JPY Bn）

(Forecast)


(Forecast)

1. Corporate Financial ServicesIII. Segment Results and Strategies

Base Revenue Breakdown* (FY13.3)（JPY Bn）

Examples of service related revenues

- Solar panel sales

- Insurance agency commission

* ”Base Revenues” = Base profit before deduction of SGA

- Interest related revenues: Includes direct finance leases, interest on loans and investment securities, equity in net income (loss) of affiliates, etc.

- Service related revenues: Includes operating leases, life insurance premiums, other operating revenues, etc. (corresponding expenses have been deducted)

- Interest expense is divided according to the proportion of interest related assets and service related assets and deducted from both revenues

Enhance Matrix Sales

Continue to strengthen solar panel sales


2. Maintenance LeasingIII. Segment Results and Strategies

（JPY Bn）Base Revenue Breakdown (FY13.3)

Examples of service related revenuesrevenues

- Maintenance revenues

- Rental revenues

F th d t b d Further expand customer base and scale

Promote streamlining of operations and enhance cost control

Maintain stable high profitability


3. Real EstateIII. Segment Results and Strategies


Examples of service related revenues

- Real estate rental revenues

- Facility operation revenues

I b fit i l th h l Increase base profit mainly through real estate operating business

Expand fee revenues leveraging expertise

Maintain asset composition ratio of 15–20%


20%

4. Investment & OperationIII. Segment Results and Strategies



- Loan servicing fee

- Solar panel sales

I f i t Increase revenues from environment and energy business

Expand active investment bothdomestically and overseas

Promote mega solar business ahead of the original plan


of the original plan

12

5. RetailIII. Segment Results and Strategies


Examples of service relatedExamples of service related revenues

- Life insurance premiums

Increase card loan balance

Expand sector and scale of life insurance Expand sector and scale of life insurance operation


6. Overseas BusinessIII. Segment Results and Strategies



- M&A advisory fee

- Aircraft operating lease revenuesrevenues

U.S.: Continue to enhance fee business

Asia: Expand assets, capture economic growtheconomic growth

Securely close Robeco acquisition


IV. Major Investment Activities

ORIX Credit KINREI Net ProtectionsRobeco

GlobalJapanJuly 2012 August 2013(Plan)

April 2012 Dec. 2012Japan Japan

ORIX Credit KINREIManufacturing of

Frozen Foods and Restaurant Operation

Net ProtectionsE-Commerce

Deferred Payment Clearance Service

RobecoCard Loan Business Asset Management

Business

Asahi Fiber Glass 1st HoldingsThe Mongolia

Mongolia March 2013

STX Energy

Dec. 2012 Feb. 2013Japan Japan JapanMay 2013(Plan)

Asahi Fiber Glass 1 HoldingsgOpportunities FundⅠ

Energy Business Manufacturing of Glass Fiber

Planning, Development, and Maintenance of

Software

STX Energy

Investment in Mining and

Infrastructure SoftwareInfrastructure


V. Summary

Increase investments that match “Finance + Services,” both domestically and overseasboth domestically and overseas

Take good risks nimbly by enhancing expertise

Create new market while shifting to new battleground

FY14.3 Net Income Target 135bn yen

FY16.3 Aim to achieve 10% ROE


Appendixppe d


Appendix(1) Trend in Performance

（JPY Bn）

*1 Net Income Attributable to ORIX Corporation Shareholders1 Net Income Attributable to ORIX Corporation Shareholders

*2 Performance indicators shown are Non-GAAP financial measures. For a qualitative reconciliation of the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, please see page 29.


Appendix(2) Profit by Segment

（JPY Bn）

11.3 12.3 13.3 Change

Corporate Financial Services 10.0 21.5 24.8 115%

Maintenance Leasing 26 2 34 7 36 1 104%Maintenance Leasing 26.2 34.7 36.1 104%

Real Estate 0.1 1.3 5.6 414%

Investment and Oparation 13.2 16.0 34.9 219%

Retail 21.8 19.4 43.2 223%

Overseas Business 45.6 49.8 52.8 106%

Total Segment Profit 117.0 142.7 197.3 138%

The Company evaluates the performance of segments based on income before income taxes and discontinued operations adjusted for results of discontinued operations net income attributable to the noncontrolling interests

g

operations, adjusted for results of discontinued operations, net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests before applicable tax effect.


Appendix(3) Assets by Segment & Region（JPY Bn）

■ Overseas Business Segment Assets by Region


Appendix(4) Funding and Liquidity（JPY Bn）

*1 Marketable Short-term Debt is the total of bonds and MTN expected to reach maturity within 1 year and the balance of CP.


p y y

*2 Performance indicator is a Non-GAAP financial measure. For a qualitative reconciliation of the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, please see page 29

21

Appendix(5) Segment Performance - 1Corporate Financial Services

Maintenance Leasing


Appendix(6) Segment Performance - 2Real Estate

Investment & Operation


Appendix(7) Segment Performance - 3Retail

Overseas Business


Appendix(8) Real Estate Portfolio■ Trend in Real Estate Segment Assets by Type （JPY Bn）

■ NOI Yield and Vacancy Rate Trends

* 40.8bn of NRL/specified bonds held by domestic Group companies not included (As of Mar. 2013)

■ Trend in Amount of Rental Property Sales


Appendix(9) Real Estate Portfolio

■ Rental Property Assets by Type (13.3) （JPY Bn）

■ Rental Property Assets by Region (13.3)


Appendix(10) Asset Quality■ Asset Quality (Adjusted **) （JPY Bn）

*1

*1 Of the 168.1bn in loans individually evaluated for impairment, 104.0bn is fully covered by collaterals such as real estate.

■ Trend in Provisions and Provisioning Rate (Adjusted **)

Including 52.2bn in provisions, 92.9% is fully covered*2 (90+ Days Past-Due Direct Financing Leases + 90+ Days Past-Due Loans Not Individually Evaluated for Impairment ＋ Loans Individually Evaluated for Impairment)/(Investment in Direct Financing Leases ＋ Installment Loans)

* Provisions (Adjusted)/ (Average Investment in Direct Financing Leases + Average Investment in Installment Loans)


Provisions (Adjusted)/ (Average Investment in Direct Financing Leases + Average Investment in Installment Loans)

**The above exclude the effects of adopting the new accounting standards regarding the consolidation of VIEs.

Appendix(11) Reconciliation Table of Non-GAAP Financial Measurement

These materials include certain financial measures presented on a basis not in accordance with U.S. GAAP, or non-GAAP measures, including total assets and long-term liabilities excluding liabilities in line with securitized transactions (ABS, CMBS), as well as other measures or ratios calculated based thereon, presented on an adjusted basis, which excludes payables under securitized leases, loan receivables and investment in securities and reverses the cumulative effect on retained earnings of applying the new accounting standards for the consolidation of VIEs effective April 1 2010retained earnings of applying the new accounting standards for the consolidation of VIEs, effective April 1, 2010.

(1) Our management believes these non-GAAP financial measures may provide investors with additional meaningful comparisons between our financial condition as of March 31, 2013, as compared to prior periods. Effective April 1, 2010, we adopted ASU 2009-16 and ASU 2009-17 which changed the circumstances under which we are required towe adopted ASU 2009 16 and ASU 2009 17, which changed the circumstances under which we are required to consolidate certain VIEs. Our adoption of these new accounting standards caused a significant increase in our consolidated assets and liabilities and a decrease in our retained earnings without affecting the net cash flow and economic effects of our investments in such consolidated VIEs. Accordingly, our management believes that providing financial measures that exclude assets and liabilities attributable to consolidated VIEs as a supplement to financial information calculated in accordance with U.S. GAAP enhances the overall picture of our current financial position and p penables investors to evaluate our historical financial and business trends without the large balance sheet fluctuation caused by our adoption of these new accounting standards.

(2) Our management believes that in comparing segment information as of March 31, 2013 as compared to prior periods, the provision of the non-GAAP financial measure of base profit that excludes capital gains, allowance for doubtful receivables and probable loan losses and impairments may provide investors with additional meaningful insight regardingreceivables and probable loan losses, and impairments may provide investors with additional meaningful insight regarding segment profit trends.

We provide these non-GAAP financial measures as supplemental information to our consolidated financial statements prepared in accordance with U S GAAP and they should not be considered in isolation or as a substitute for the mostprepared in accordance with U.S. GAAP, and they should not be considered in isolation or as a substitute for the most directly comparable U.S. GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures presented in accordance with U.S. GAAP as reflected in our consolidated financial statements for the periods provided, are included in page 29 and 30.



（JPY Bn）



（JPY Bn）

*1 Base Profit = Segment Profit – Capital Gains – Provisions – Impairments*2 Brokerage commissions and net gains (losses) on investment securities, real estate sales (net of cost), gains (losses) on sales of real estate under operating

leases, gains (losses) on sales of subsidiaries and affiliates and liquidation losses, net, and equivalent amount of real estate joint-venture equity method profit for equity in net income (loss) of affiliates.


*3 Impairment losses for write-downs of long-lived assets, write-downs of securities, and equivalent amount of costs of real estate sales and equity in net income (loss) of affiliates.

30

Reference Datae e e ce ata


Macro Economic IndicatorsNational CPI (Ex Fresh Food)

(YoY Change)(% Change)

Source: Bloomberg


Source: Bloomberg

Japanese Corporate Indices

Tankan Corporate Corporate BankruptciesDiffusion Index

(JPY Tn)

(Quarterly Basis)

(Cases)

Source: Teikoku Databank, Ltd. Source: Bank of Japan


Japanese Real Estate Indicators

Japan TSE REIT Index Office Rental Ratesp(Yen per 3.3㎡)

Source: Tokyo Stock Exchange Source: CBRE


Domestic Lease Business Indicators

Private Equipment Investment New Car Sales

14.0%7,00012.0%90,000

Private Equipment Investment

(1,000 Units)(JPY Bn)

8.0%

10.0%

12.0%

4,000

5,000

6,000

8.0%

10.0%

50 000

60,000

70,000

80,000

2 0%

4.0%

6.0%

1 000

2,000

3,000

,

2 0%

4.0%

6.0%

20,000

30,000

40,000

50,000

0.0%

2.0%

0

1,000

2000 2002 2004 2006 2008 2010

New Car Sales Share of Lease

0.0%

2.0%

0

10,000

2000 2002 2004 2006 2008 2010

Private Equipment Inv. Share of Leaseq p

Source: Japan Leasing Association Source: Japan Automotive Leasing Association


Other Domestic IndicatorsTrend in Domestic Supply of

Renewable Energy Domestic Shipping Amount of Solar Cell

（Primary Energy Supply Basis）

(Petajoule) (MW)

Source: Agency for Natural Resources and Energy Source: Japan Photovoltaic Energy Association


Source: Agency for Natural Resources and Energy Source: Japan Photovoltaic Energy Association

Other Domestic IndicatorsThe number of M&A

(Cases)

Source: RECOF Corporation


Source: RECOF Corporation

Other Domestic Indicators

Consumer Finance LoansRetail Life Insurance

25,000

(JPY Bn)(JPY Bn)

15,000

20,000

5,000

10,000

02000 2002 2004 2006 2008 2010

fRetail Life Insurance Premiums

Source: Japan Statistics Bureau Source: Japan Financial Services Agency


Additional Information

ORIX W b it URL htt // i j / / /

For annual and more historical data please access our website. A list of major disclosure materials is given below.

ORIX Website: URL: http://www.orix.co.jp/grp/en/IR Website: URL: http://www.orix.co.jp/grp/en/ir/

If ld lik t b i l d d il li t f j tIf you would like to be included on our e-mail list for major news announcements, please send your request to the address below.

ORIX Corporation Corporate Planning Department

World Trade Center Building., 2-4-1,World Trade Center Building., 2 4 1, Hamamatsu-cho, Minato-ku,

Tokyo 105-6135, Japan

T l +81 3 3435 3121Tel: +81-3-3435-3121 Fax: +81-3-3435-3154

[email protected]


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