Consolidated Financial Results
April 1, 2023 -March 31, 2024
May 8, 2024
In preparing its consolidated financial information, ORIX Corporation (the "Company") and its subsidiaries have complied with generally accepted accounting principles in the United States of America.
This document may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on the Company's 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 most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission.
The Company believes that it may have been a "passive foreign investment company" for U.S. federal income tax purposes in the year to which these consolidated financial results relate by reason of the composition of its assets and the nature of its income. In addition, the Company may be a PFIC for the foreseeable future. Assuming that the Company is a PFIC, a U.S. holder of the shares or American depositary shares of the Company will be 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.
For further information please contact:
Investor Relations and Sustainability Department ORIX Corporation
World Trade Center Bldg., SOUTH TOWER, 2-4-1Hamamatsu-cho,Minato-Ku, Tokyo, 105-5135
JAPAN
Tel: +81-3-3435-3121 Fax: +81-3-3435-3154
E-mail: orix_corpcomm@orix.jp
Consolidated Financial Results from April 1, 2023 to March 31, 2024 | |
(U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries) | |
Corporate Name: | ORIX Corporation |
Listed Exchanges: | Tokyo Stock Exchange (Securities No. 8591) |
New York Stock Exchange (Trading Symbol : IX) | |
Head Office: | Tokyo JAPAN |
Tel: +81-3-3435-3121 | |
(URL https://www.orix.co.jp/grp/en/ir/) |
1. Performance Highlights as of and for the Year Ended March 31, 2024
(1) Performance Highlights - Operating Results (Unaudited)
(millions of yen) | |||||||||||||||
Net Income | |||||||||||||||
Total | Year-on-Year | Operating | Year-on-Year | Income before | Year-on-Year | Attributable to | Year-on-Year | ||||||||
ORIX Corporation | |||||||||||||||
Revenues | Change | Income | Change | Income Taxes | Change | Change | |||||||||
Shareholders | |||||||||||||||
March 31, 2024 | |||||||||||||||
2,814,361 | 5.7% | 360,713 | 7.4% | 469,975 | 19.8% | 346,132 | 19.2% | ||||||||
March 31, 2023 | 2,663,659 | 6.2% | 335,923 | 14.7% | 392,178 | (23.0%) | 290,340 | (8.5%) |
"Comprehensive Income Attributable to ORIX Corporation Shareholders" was ¥547,310 million for the fiscal year ended March 31, 2024 (year-on-year change was a 30.1% increase) and ¥420,584 million for the fiscal year ended March 31, 2023 (year-on-year change was a 6.5% decrease).
*Note 1: Accounting Standards Update 2018-12 ("Targeted Improvements to the Accounting for Long-Duration Contracts"―ASC 944 ("Financial Services―Insurance")) (hereinafter, "LDTI") has been adopted since April 1, 2023, with the transition date of April 1, 2021, on a modified retrospective approach.
*Note 2: The presentation of equity method investment has been changed since fiscal 2024. As a result, certain line items presented in our consolidated statements of income for the previous fiscal years have been retrospectively reclassified for this change.
Basic | Diluted | Return on | Return on | Operating | |||||
Earnings Per Share | Earnings Per Share | Equity | Assets *4 | Margin | |||||
March 31, 2024 | 298.55 | 298.05 | 9.2% | 3.0% | 12.8% | ||||
March 31, 2023 | 245.98 | 245.65 | 8.5% | 2.7% | 12.6% |
"Equity in Net Income of Equity method investments" was a net gain of ¥36,774 million for the fiscal year ended March 31, 2024 and a net gain of ¥22,081 million for the fiscal year ended March 31, 2023.
*Note 3: Unless otherwise stated, all amounts shown herein are in millions of Japanese yen, except for per share and dividend amounts which are in single yen.
*Note 4: "Return on Assets" is calculated based on "Income before Income Taxes."
(2) Performance Highlights - Financial Position (Unaudited) | ||||||||||||||||||||||||||||||||||
Total | Total | Shareholders' | Shareholders' | Shareholders' | ||||||||||||||||||||||||||||||
Assets | Equity | Equity | Equity Ratio | Equity Per Share | ||||||||||||||||||||||||||||||
March 31, 2024 | 16,322,100 | 4,021,965 | 3,941,466 | 24.1% | 3,422.94 | |||||||||||||||||||||||||||||
March 31, 2023 | 15,289,385 | 3,614,322 | 3,543,607 | 23.2% | 3,027.93 | |||||||||||||||||||||||||||||
*Note 5: "Shareholders' Equity" refers to "Total ORIX Corporation Shareholders' Equity." | ||||||||||||||||||||||||||||||||||
"Shareholders' Equity Ratio" is the ratio of "Total ORIX Corporation Shareholders' Equity" to "Total Assets." | ||||||||||||||||||||||||||||||||||
"Shareholders' Equity Per Share" is calculated based on "Total ORIX Corporation Shareholders' Equity." | ||||||||||||||||||||||||||||||||||
LDTI standard has been adopted since April 1, 2023, with the transition date of April 1, 2021, on a modified retrospective approach. | ||||||||||||||||||||||||||||||||||
(3) Performance Highlights - Cash Flows (Unaudited) | ||||||||||||||||||||||||||||||||||
Cash Flows | Cash Flows | Cash Flows | Cash, Cash Equivalents and | |||||||||||||||||||||||||||||||
Restricted Cash | ||||||||||||||||||||||||||||||||||
from Operating Activities | from Investing Activities | from Financing Activities | ||||||||||||||||||||||||||||||||
at End of Year | ||||||||||||||||||||||||||||||||||
March 31, 2024 | ||||||||||||||||||||||||||||||||||
1,243,402 | (1,372,803) | (85,477) | 1,185,307 | |||||||||||||||||||||||||||||||
March 31, 2023 | 913,088 | (1,098,478) | 438,308 | 1,366,908 | ||||||||||||||||||||||||||||||
2. Dividends (Unaudited) | ||||||||||||||||||||||||||||||||||
First | Second | Third | Total | Dividend Payout | Dividends on Equity | |||||||||||||||||||||||||||||
Year-end | Total | Ratio | ||||||||||||||||||||||||||||||||
Quarter-end | Quarter-end | Quarter-end | Dividends Paid | (Consolidated base) | ||||||||||||||||||||||||||||||
(Consolidated base) | ||||||||||||||||||||||||||||||||||
March 31, 2023 | - | 42.80 | - | 42.80 | 85.60 | 100,794 | 34.8% | 3.0% | ||||||||||||||||||||||||||
March 31, 2024 | - | 42.80 | - | 55.80 | 98.60 | 114,095 | 33.0% | 3.1% | ||||||||||||||||||||||||||
March 31, 2025 (Est.) | - | 49.30 | - | 49.30 | 98.60 | - | - | - |
*Note 6: Total dividends paid include dividends paid to the Board Incentive Plan Trust (¥241 million for the fiscal year ended March 31, 2023 and ¥272 million for the fiscal year ended March 31, 2024). For the next fiscal year ending March 31, 2025, the annual dividend is forecasted at the higher of either payout ratio of 39% or 98.60 yen per share. In the above table, the minimum dividend has been stated.
3. Forecast for the Year Ending March 31, 2025 (Unaudited)
Net Income | Year-on-Year | ||
Attributable to | |||
Change | |||
ORIX Corporation Shareholders | |||
March 31, 2025 | |||
390,000 | 12.7% |
*Note 7: Although forward-looking statements in this document are based on information currently available to ORIX Corporation and are based on assumptions deemed reasonable by ORIX Corporation, actual financial results may differ materially due to various factors. Readers are urged not to place undue reliance on such forward-looking statements.
Factors causing a result that differs from forward-looking statements include, but are not limited to, those described under "Risk Factors" in our Form 20-F submitted to the U.S. Securities and Exchange Commission.
4. Other Information | ||||||||||
(1) | Changes in Significant Consolidated Subsidiaries | Yes | ( | ) | No | ( x ) | ||||
Addition - None ( | ) | Exclusion - None ( | ) | |||||||
(2) | Changes in Accounting Principles | |||||||||
1. | Changes due to adoptions of new accounting standards | Yes | ( | x ) | No | ( | ) | |||
2. | Other than those above | Yes | ( | ) | No | ( | x ) | |||
(3) | Number of Issued Shares (Ordinary Shares) |
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- The number of issued shares, including treasury stock, was 1,214,961,054 as of March 31, 2024, and 1,234,849,342 as of March 31, 2023.
- The number of treasury stock was 60,748,162 as of March 31, 2024, and 61,742,607 as of March 31, 2023.
-
The average number of outstanding shares was 1,159,367,000 for the fiscal year ended March 31, 2024, and 1,180,356,466 for the fiscal year ended March 31, 2023.
The Company's shares held through the Board Incentive Plan Trust (2,727,686 shares as of March 31, 2024 and 2,800,866 shares as of March 31, 2023) are not included in the number of treasury stock as of the end of the periods, but are included in the average number of shares outstanding as treasury stock that are deducted from the basis of the calculation of per share data.
- These consolidated financial results from April 1, 2023 to March 31, 2024 are not subject to certified public accountant's or audit firm's audits.
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1. Summary of Consolidated Financial Results
- Summary of Financial Highlights
Financial Results for the Fiscal Year Ended March 31, 2024
Fiscal Year ended | Fiscal Year ended | Change | |||||
March 31, 2023 | March 31, 2024 | Amount | Percent | ||||
Total Revenues | (millions of yen) | 2,663,659 | 2,814,361 | 150,702 | 6 % | ||
Total Expenses | (millions of yen) | 2,327,736 | 2,453,648 | 125,912 | 5 % | ||
Income before Income Taxes | (millions of yen) | 392,178 | 469,975 | 77,797 | 20 % | ||
Net Income Attributable to | (millions of yen) | 290,340 | 346,132 | 55,792 | 19 % | ||
ORIX Corporation Shareholders | |||||||
Earnings Per Share (Basic) | (yen) | 245.98 | 298.55 | 52.57 | 21 % | ||
(Diluted) | (yen) | 245.65 | 298.05 | 52.40 | 21 % | ||
ROE *1 | (%) | 8.5 | 9.2 | 0.7 | - | ||
ROA *2 | (%) | 1.96 | 2.19 | 0.23 | - | ||
*Note 1 : ROE is the ratio of Net Income Attributable to ORIX Corporation Shareholders for the period to average ORIX Corporation Shareholders' Equity.
*Note 2 : ROA is calculated based on Net Income Attributable to ORIX Corporation Shareholders.
*Note 3 : Accounting Standards Update 2018-12 ("Targeted Improvements to the Accounting for Long-Duration Contracts"―ASC 944 ("Financial Services―Insurance")) (hereinafter, "LDTI") has been adopted since April 1, 2023, with the transition date of April 1, 2021, on a modified retrospective approach.
*Note 4 : The presentation of equity method investment has been changed since fiscal 2024. As a result, certain line items presented in our consolidated statements of income for the previous fiscal years have been retrospectively reclassified for this change.
Overview of Business Performance (April 1, 2023 to March 31, 2024)
Total revenues for the consolidated fiscal year ended March 31, 2024 (hereinafter, "the fiscal year") increased 6% to ¥2,814,361 million compared to the previous fiscal year due to increases in life insurance premiums and related investment income, services income, operating lease revenues and finance revenues despite a decrease in sales of goods and real estate.
Total expenses increased 5% to ¥2,453,648 million compared to the previous fiscal year due to increases in selling, general and administrative expenses, interest expense and life insurance costs despite decreases in costs of goods and real estate sold and services expense.
Equity in net income of equity method investments for the fiscal year increased by ¥14,693 million to ¥36,774 million compared to the previous fiscal year and gains on sales of subsidiaries and equity method investments and liquidation losses, net for the fiscal year increased by ¥39,488 million to ¥72,488 million compared to the previous fiscal year.
Due to the above results, income before income taxes for the fiscal year increased 20% to ¥469,975 million compared to the previous fiscal year and net income attributable to ORIX Corporation shareholders increased 19% to ¥346,132 million compared to the previous fiscal year.
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Segment Information
Total segment profits for the fiscal year increased 22% to ¥494,152 million compared to the previous fiscal year. Segment profits increased in each of Corporate Financial Services and Maintenance Leasing, Real Estate, PE Investment and Concession, Insurance, Banking and Credit, and Aircraft and Ships while segment profits in each of Environment and Energy, ORIX USA, ORIX Europe, and Asia and Australia decreased, in each case as compared to the previous fiscal year.
Since April 1, 2023, segment profits have been calculated with a broadened scope of profit sharing for inter-segment collaboration. As a result, segment data for the previous fiscal year has been retrospectively reclassified.
LDTI standard has been adopted since April 1, 2023, with the transition date of April 1, 2021, on a modified retrospective approach. As a result of the adoption of LDTI, Insurance segment data for the previous fiscal year has been retrospectively adjusted.
The presentation of equity method investment has been changed since fiscal 2024. As a result, segment data for the previous fiscal year has been retrospectively reclassified.
Segment information for the fiscal year is as follows:
Corporate Financial Services and Maintenance Leasing: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments, and ICT-related equipment
Segment Profits
Segment Assets
Year ended | Year ended | Change | |||
March 31, 2023 | March 31, 2024 | Amount | Percent | ||
(millions of yen) | (millions of yen) | ||||
(millions of yen) | (%) | ||||
75,025 | 81,195 | 6,170 | 8 | ||
As of March 31, 2023 | As of March 31, 2024 | Change | |||
(millions of yen) | (millions of yen) | Amount | Percent | ||
(millions of yen) | (%) | ||||
1,514,070 | 1,552,322 | 38,252 | 3 | ||
Segment profits increased 8% to ¥81,195 million compared to the previous fiscal year due to an increase in gains on investment securities and dividends and an increase in services income, despite an increase in selling, general and administrative expenses.
Segment assets increased 3% to ¥1,552,322 million compared to the end of the previous fiscal year due to an increase in investment in operating leases and an increase in installment loans.
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Real Estate: Real estate development, rental, and management; facility operations; real estate asset management
Segment Profits
Segment Assets
Year ended | Year ended | Change | |||
March 31, 2023 | March 31, 2024 | Amount | Percent | ||
(millions of yen) | (millions of yen) | ||||
(millions of yen) | (%) | ||||
51,578 | 65,835 | 14,257 | 28 | ||
As of March 31, 2023 | As of March 31, 2024 | Change | |||
(millions of yen) | (millions of yen) | Amount | Percent | ||
(millions of yen) | (%) | ||||
935,027 | 994,115 | 59,088 | 6 | ||
Segment profits increased 28% to ¥65,835 million compared to the previous fiscal year due to an increase in services income from operating facilities.
Segment assets increased 6% to ¥994,115 million compared to the end of the previous fiscal year due to an increase in inventories.
PE Investment and Concession: Private equity investment; concession
Segment Profits
Year ended | Year ended | Change | |
March 31, 2023 | March 31, 2024 | Amount | Percent |
(millions of yen) | (millions of yen) | ||
(millions of yen) | (%) | ||
2,837 | 43,378 | 40,541 | - |
Segment Assets
As of March 31, 2023 | As of March 31, 2024 | Change | |
(millions of yen) | (millions of yen) | Amount | Percent |
(millions of yen) | (%) | ||
605,471 | 772,834 | 167,363 | 28 |
Segment profits increased by ¥40,541 million to ¥43,378 million compared to the previous fiscal year due to an increase in gains on sales of subsidiaries and equity method investments resulting from the sale of certain investees and an increase in equity income of investment in corporate entities at our three airports in Kansai in our concession business.
Segment assets increased 28% to ¥772,834 million compared to the end of the previous fiscal year due to an increase in installment loans and an increase in equity method investments.
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Environment and Energy: Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels and battery energy storage system; recycling and waste management
Segment Profits
Segment Assets
Year ended | Year ended | Change | |||
March 31, 2023 | March 31, 2024 | Amount | Percent | ||
(millions of yen) | (millions of yen) | ||||
(millions of yen) | (%) | ||||
32,960 | 29,898 | (3,062) | (9) | ||
As of March 31, 2023 | As of March 31, 2024 | Change | |||
(millions of yen) | (millions of yen) | Amount | Percent | ||
(millions of yen) | (%) | ||||
773,617 | 847,049 | 73,432 | 9 | ||
Segment profits decreased 9% to ¥29,898 million compared to the previous fiscal year due to the absence of gains on the sale of shares of subsidiaries and equity method investments resulting from the partial sale of an investee recorded in the previous fiscal year.
Segment assets increased 9% to ¥847,049 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects.
Insurance: Life insurance
Segment Profits
Year ended | Year ended | Change | |
March 31, 2023 | March 31, 2024 | Amount | Percent |
(millions of yen) | (millions of yen) | ||
(millions of yen) | (%) | ||
62,990 | 70,034 | 7,044 | 11 |
Segment Assets
As of March 31, 2023 | As of March 31, 2024 | Change | |
(millions of yen) | (millions of yen) | Amount | Percent |
(millions of yen) | (%) | ||
2,050,412 | 2,309,357 | 258,945 | 13 |
Segment profits increased 11% to ¥70,034 million compared to the previous fiscal year due to an increase in life insurance premiums and related investment income.
Segment assets increased 13% to ¥2,309,357 million compared to the end of the previous fiscal year due to an increase in investment in securities.
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Banking and Credit: Banking; consumer finance
Segment Profits
Year ended | Year ended | Change | |
March 31, 2023 | March 31, 2024 | Amount | Percent |
(millions of yen) | (millions of yen) | ||
(millions of yen) | (%) | ||
37,610 | 96,744 | 59,134 | 157 |
Segment Assets
As of March 31, 2023 | As of March 31, 2024 | Change | |
(millions of yen) | (millions of yen) | Amount | Percent |
(millions of yen) | (%) | ||
2,698,747 | 2,733,021 | 34,274 | 1 |
Segment profits increased 157% to ¥96,744 million compared to the previous fiscal year due to an increase in gains on sales of subsidiaries and equity method investments resulting from the partial sale of shares of ORIX Credit Corporation ("ORIX Credit").
Segment assets increased 1% to ¥2,733,021 million compared to the end of the previous fiscal year due to an increase in equity method investments despite a decrease in installment loans resulting from the partial sale of shares of ORIX Credit, and an increase in investment in securities at ORIX Bank Corporation.
Aircraft and Ships: Aircraft investment and management; ship-related finance and investment
Segment Profits
Segment Assets
Year ended | Year ended | Change | |||
March 31, 2023 | March 31, 2024 | Amount | Percent | ||
(millions of yen) | (millions of yen) | ||||
(millions of yen) | (%) | ||||
18,583 | 26,773 | 8,190 | 44 | ||
As of March 31, 2023 | As of March 31, 2024 | Change | |||
(millions of yen) | (millions of yen) | Amount | Percent | ||
(millions of yen) | (%) | ||||
742,890 | 1,058,435 | 315,545 | 42 | ||
Segment profits increased 44% to ¥26,773 million compared to the previous fiscal year due to an increase in operating leases revenues in our aircraft business.
Segment assets increased 42% to ¥1,058,435 million compared to the end of the previous fiscal year due to an increase in investment in operating leases and foreign exchange effects.
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ORIX USA: Finance, investment, and asset management in the Americas
Segment Profits
Year ended | Year ended | Change | |
March 31, 2023 | March 31, 2024 | Amount | Percent |
(millions of yen) | (millions of yen) | ||
(millions of yen) | (%) | ||
49,021 | 17,337 | (31,684) | (65) |
Segment Assets
As of March 31, 2023 | As of March 31, 2024 | Change | |
(millions of yen) | (millions of yen) | Amount | Percent |
(millions of yen) | (%) | ||
1,462,717 | 1,537,025 | 74,308 | 5 |
Segment profits decreased 65% to ¥17,337 million compared to the previous fiscal year due to a decrease in gains on investment securities and dividends and a decrease in gains on sales of subsidiaries and equity method investments.
Segment assets increased 5% to ¥1,537,025 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects, despite a decrease in installment loans.
ORIX Europe: Asset management of global equity and fixed income
Segment Profits
Year ended | Year ended | Change | |
March 31, 2023 | March 31, 2024 | Amount | Percent |
(millions of yen) | (millions of yen) | ||
(millions of yen) | (%) | ||
40,675 | 28,619 | (12,056) | (30) |
Segment Assets
As of March 31, 2023 | As of March 31, 2024 | Change | |
(millions of yen) | (millions of yen) | Amount | Percent |
(millions of yen) | (%) | ||
417,941 | 459,248 | 41,307 | 10 |
Segment profits decreased 30% to ¥28,619 million compared to the previous fiscal year due to an increase in interest expense related to the investment in ORIX Corporation Europe N.V.
Segment assets increased 10% to ¥459,248 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects.
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Asia and Australia: Finance and investment businesses in Asia and Australia
Segment Profits
Year ended | Year ended | Change | |
March 31, 2023 | March 31, 2024 | Amount | Percent |
(millions of yen) | (millions of yen) | ||
(millions of yen) | (%) | ||
34,952 | 34,339 | (613) | (2) |
Segment Assets
As of March 31, 2023 | As of March 31, 2024 | Change | |
(millions of yen) | (millions of yen) | Amount | Percent |
(millions of yen) | (%) | ||
1,395,096 | 1,587,540 | 192,444 | 14 |
Segment profits decreased 2% to ¥34,339 million compared to the previous fiscal year due to the absence of gains on sales of subsidiaries and equity method investments due to the sale of certain investees recorded in the previous fiscal year and an increase in credit loss expense, despite an increase in gains on investment securities and dividends.
Segment assets increased 14% to ¥1,587,540 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects.
Outlook and Forecast
In addition to continuing growth exhibited in our existing business operations, we believe that there are further growth opportunities in all of our segments, and we will strive to achieve sustainable profit growth by capitalizing on these opportunities going forward.
Although forward-looking statements in this document are attributable to current information available to us and are based on assumptions deemed reasonable by us, actual financial results may differ materially due to various factors. Readers are urged not to place undue reliance on such forward-looking statements.
Factors that could cause results that differ materially from those described in the forward-looking statements include, but are not limited to, those described under "Risk Factors" in our Form 20-F submitted to the U.S. Securities and Exchange Commission.
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ORIX Corporation published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 06:22:04 UTC.