ORIX Corporation

Third Quarter Consolidated Financial Results

For the Nine-Month Period Ended December 31, 2019

Hitomaro Yano

Executive Officer

Head of Treasury and Accounting Headquarters

February 3, 2020

(TSE: 8591; NYSE: IX)

Overview（1）Net Income / ROE

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

Net Income* and ROE

Reference: Past Quarterly ROE

(JPY Bn)

35 0. 0

11.5%

11.7%

11.3%

12.1%

11.6%

30 0. 0

25 0. 0

11.5% 11.0%13.0%

100000

15.2%

15.0%

12.3%

13.2%

12.5%

14.3%

13.7%

11.9%

11.5%

11.4%

90000

9.6%

8.5%

14.4%

9.6%

13.7%

80000

10.00%

9.3%

11.1%

11.9%

10.9%

12.3%

9.1%

70000

7.8%

8.5%

60000

20 0. 0

15 0.

0

260.2

273.2

313.1

323.7

234.9

236.2

244.3

10 0.

0

50 .0

0.

0

-7.0%

15.3

16.3

17.3

18.3

19.3

19.3 Q3

20.3 Q3

Net Income

ROE (annualized)

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

50000

40000

-10.00%

30000

20000

ROE fluctuates quarterly

10000

0

-30.00%

15.3

16.3

17.3

18.3

19.3

20.3

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q1

Q2

Q3

Q4

Q1

Net Income

ROE (annualized)

Copyright © 2020 ORIX Corporation All rights reserved.

2

Overview（2）Breakdown of Segment Profits

FY20.3 Q3

Of which

Other than

Segment Profits

gains on sales

352.9 JPY bn

up by 19% YoY

Of which

(+55.1 JPY bn)

Gains on sales

238.5 JPY bnup by 7% YoY (+16.0 JPY bn)

Exceeded the level of last year with the contribution of new M&A (NXT, Avolon), although there are a few segments where the profits decreased YoY

114.5 JPY bnup by 52% YoY (+39.2 JPY bn)

Sold ORIX Living, completed selling all the shares of Houlihan Lokey and sold several PE investments to promote portfolio replacement

500.0

450.0

400.0

350.0

300.0

250.0

200.0

150.0

100.0

50.0

0.0

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

Segment Profits

(JPY Bn)

429.1

New Investments(After FY20.3 Q3)

420.9

401.4

385.7

Oct. 2019

Wind power

（Overseas）

352.9

business

Acquired up to 100% of the shares

339.8

143.2

107.3

297.8

114.5

Dec. 2019

Infrastructure

（U.S.）

Jan. 2020

services

2 PE deals

75.3

Hunt Real Estate

（U.S.）

Jan. 2020

Real estate loan origination and servicing

285.9

294.1

Capital

222.5

238.5

company

Jan. 2020

Kobayashi Kako

（PE investment in Japan）

Producer and seller of generic drugs.

15.3

16.3

17.3

18.3

19.3

19.3 Q3

20.3 Q3

Segment profits (other than gains on sales)

Gains on sales

Copyright © 2020 ORIX Corporation All rights reserved.

3

Overview（3）Segment Profits / Segment Assets

  • Segment Profits: 352.9 JPY bn

Real Estate, Investment and Operation, Retail and Overseas Business increased YoY while Corporate Financial Services and Maintenance Leasing decreased YoY

✓Segment Assets: 10.9 JPY tn up by 9% YTD (+861.5 JPY bn)

*Includes about 200 JPY bn as a result of adoption of new lease accounting standards

Segment Profits

Segment Assets and ROA

(JPY Tn)

(JPY Bn)

140

120

100

80

60

40

20

0

18.3 Q3

19.3 Q3

20.3 Q3

12

3.4％

3.4％

3.1％

10

8

6

4

2

0

18.3

19.3

20.3 Q3

Corporate Financial Services

Maintenance Leasing

Real Estate

Investment and Operation

Retail

Overseas Business

Corporate Financial Services

Maintenance Leasing

Real Estate

Investment and Operation

Retail

Overseas Business

Segment ROA (annualized and after-tax)

Copyright © 2020 ORIX Corporation All rights reserved.

4

Segment Performance（1）Corporate Financial Services

*As the figures less than 0.1 JPY bn are rounded off, the total

the segment figures

of individual business unit figures does not necessarily match

Segment Profits: 13.2 JPY bn

YoY ▲6.6 JPY bn (▲33％)

  • Agency fee income from life insurance business for corporate customers decreased. Yields on loans were maintained
  • Yayoi achieved increase in membership forfee-based support services and sales of
    packaged products
    ▲1.4 JPY bn>

Segment Assets: 1,000.1 JPY bn YTD +40.4 JPY bn (+4％)

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

Segment Profits

Segment Assets and ROA

Yields on Loans

(JPY Bn)

(JPY Bn)

(JPY Bn)

40

35 5.1

30

25

20

4.4

32.4

15

10

15.4

5.1

5

8.0

0

18.3 Q3

19.3 Q3

20.3 Q3

Domestic Sales

Yayoi

1,2004.0%

1,000

3.2%

100.7

97.8

3.0%

99.1

800

2.0%

1.8%

600

1.2%

891.1

860.7

902.4

1.0%

400

0.0%

200

0

-1.0%

18.3

19.3

20.3 Q3

Domestic Sales

Yayoi

Segment ROA (annualized and after-tax)

450.0

2.9%

400.0

2.4%

2.4%

2.3%

2.3%

2.3%

2.2%

3.0%

2.2%

350.0

2.0%

300.0

250.0

1.0%

200.0

369.9

364.5

369.9

364.8

361.4

367.1

374.0

353.7

150.0

0.0%

100.0

-1.0%

50.0

0.0

-2.0%

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

Installment Loans

Yields on Loans

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

Business

✓

Promote business investment to SMEs with succession problems through utilizing financial know-how and sales network

Status

✓

Diversification of services income continues while carefully dealing with asset accumulation at low spreads

Copyright © 2020 ORIX Corporation All rights reserved.

5

Segment Performance（1）Corporate Financial Services

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Finance revenues

37.4

36.0

32.4

30.7

28.8

22.3

18.2

82%

Gains on investment securities and dividends

1.0

7.1

2.5

17.1

-0.8

-0.7

1.5

-

Operating leases

24.5

25.5

25.6

23.4

23.5

17.8

17.1

96%

Services income

20.6

34.3

38.5

40.3

39.3

29.2

28.7

98%

Segment Revenues

85.9

107.5

103.1

115.8

95.2

71.7

69.7

97%

Interest expense

9.1

7.5

6.2

5.0

4.1

3.1

2.8

89%

Costs of operating leases

12.2

13.3

14.3

14.1

14.3

10.7

11.0

103%

Services expense

5.3

7.2

7.5

8.1

10.1

7.4

9.8

133%

Selling, general and administrative expenses

30.9

37.1

39.1

39.1

37.9

28.2

32.9

117%

Segment Expenses

61.0

65.8

68.2

68.8

69.0

51.1

58.6

115%

Segment Profits

25.5

42.4

38.0

49.3

25.5

19.8

13.2

67%

Net Investment in Leases

532.6

509.8

483.4

439.3

403.6

414.5

383.8

Installment Loans

461.3

417.6

402.9

369.9

364.8

369.9

374.0

Segment Assets

1,203.4

1,133.9

1,086.0

991.8

959.7

974.9

1,000.1

ROA

1.46%

2.41%

2.34%

3.24%

1.79%

1.84%

1.23%

Copyright © 2020 ORIX Corporation All rights reserved.

6

Segment Performance（2）Maintenance Leasing

Segment Profits: 25.8 JPY bn

YoY ▲4.6 JPY bn (▲15％)

  • Revenues from both Auto and Rentec increased.
  • SG&A increased from service improvement partly causing profit to decline

▲1.9 JPY bn >

Segment Assets: 900.9 JPY bn

YTD +27.2 JPY bn (+3％)

  • IT-relatedrental assets increased
  • Auto assets remained at the same level as FY19.3

Segment Profits

(JPY Bn)

35

30

7.4

8.3

25

7.7

20

15

23.6

22.1

10

18.1

5

0

18.3 Q3

19.3 Q3

20.3 Q3

Auto

Rentec

Segment Assets and ROA

(JPY Bn)

1,000

5.0%

4.5%

800

115.9

128.6

145.8

4.0%

3.3%

3.5%

3.1%

600

3.0%

2.7%

2.5%

400

731.3

745.2

755.1

2.0%

1.5%

200

1.0%

0.5%

0

0.0%

18.3

19.3

20.3 Q3

Auto

Rentec

Segment ROA (annualized and after-tax)

Number of Automobiles

Under Management (ORIX Auto)

(Millions of vehicles)

1.5

1.40

1.43

1.34

1.3

1.28

1.23

1.17

1.1

0.9

0.7

0.5

15.3 16.3 17.3 18.3 19.3 19.9

Business

Status

  • Expand car sharing business nationwide in cooperation with car rental business. Promote MaaS (Mobility as a Service) by partnering with railway companies, etc.
  • Seeking to expand the rental business including Yodogawa Transformer (rental business of power receiving, transforming and generating facilities and equipment) and by expanding rental products line up such as collaboration robots and drones

Copyright © 2020 ORIX Corporation All rights reserved.

7

Segment Performance（2）Maintenance Leasing

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Finance revenues

11.7

12.5

13.4

14.2

14.4

10.7

11.8

110%

Operating leases

185.7

188.9

187.3

189.7

198.0

147.7

154.4

105%

Services income

62.5

66.8

66.3

67.8

70.6

52.4

53.1

101%

Segment Revenues

264.1

272.1

271.0

275.9

288.2

214.3

224.0

105%

Interest expense

4.2

4.0

3.7

3.2

3.0

2.3

2.2

92%

Costs of operating leases

138.2

141.5

143.3

145.4

154.4

114.8

122.0

106%

Services expense

38.5

39.7

39.2

40.1

40.6

30.1

31.5

105%

Selling, general and administrative expenses

38.8

41.0

42.9

44.1

46.5

34.6

38.8

112%

Segment Expenses

223.6

229.2

231.1

235.6

250.5

185.0

198.2

107%

Segment Profits

40.4

42.9

39.8

40.2

38.8

30.4

25.8

85%

Net Investment in Leases

257.1

285.5

308.9

319.9

328.4

325.7

325.6

Investment in Operating Leases

488.6

492.4

492.6

505.5

525.4

515.1

556.1

Segment Assets

750.7

783.0

806.7

847.2

873.8

862.4

900.9

ROA

3.58%

3.72%

3.42%

3.32%

3.09%

3.25%

2.65%

Copyright © 2020 ORIX Corporation All rights reserved.

8

Segment Performance（3）Real Estate

Segment Profits: 56.1 JPY bn

YoY +1.3 JPY bn (+3％)

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

Segment Assets: 756.1 JPY bn

YTD +35.9 JPY bn (+5％)

  • Assets decreased due to some selling while new investments continue
  • Operating lease assets increased due to new lease accounting standards (+92.3 JPY bn)

Segment Profits

(JPY Bn)

(JPY Bn)

1,000

65

3.3

800

50

7.0

600

35

55.4

52.1

400

49.1

20

-0.7

200

5

-10

0

18.3 Q3

19.3 Q3

20.3 Q3

RE Investment and Facilities Operation

DAIKYO

Segment Assets and ROA

8.0%

181.7

6.9%

6.2%

204.8226.4

620.2

515.4529.7

18.3

19.3

20.3 Q3

RE Investment and Facilities Operation

DAIKYO

Segment ROA (annualized and after-tax)

Unrealized Gains on Rental Properties*

(JPY Bn)

90

82.8

80

70.1

73.7

70

60

54.9

57.0

50

40

30

20

10

0

15.3

16.3

17.3

18.3

19.3

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

Business

Status

  • Promotedlarge-scale projects, such as renovations of Beppu SUGINOI HOTEL (to be completed in 2025), the Osaka Umekita Phase 2 project (to be opened in 2024)
  • Integrated management initiative with DAIKYO, which became a wholly owned subsidiary in 2019, continues; promoting resources /know-how sharing in areas of Development and Sales, Brokerage, and Management and Construction

Copyright © 2020 ORIX Corporation All rights reserved.

9

Segment Performance（3）Real Estate

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Finance revenues

4.2

6.9

2.4

2.1

2.1

1.5

2.1

140%

Operating leases

71.4

67.9

96.0

55.2

72.5

56.0

49.0

88%

Gains on Rental Property Sales

15.5

16.8

50.6

14.3

35.0

27.1

23.0

85%

Sales of goods and real estate

104.6

134.8

122.0

131.8

141.5

67.7

67.8

100%

Services income

279.6

287.6

292.0

300.1

313.1

232.3

213.0

92%

Segment Revenues

460.6

498.7

512.8

489.8

529.1

357.4

332.0

93%

Interest expense

7.5

5.2

3.2

2.3

2.2

1.7

1.0

60%

Costs of operating leases

38.5

34.5

30.3

27.6

26.0

19.2

18.6

97%

Costs of goods and real estate sold

98.3

113.1

100.9

112.2

121.4

61.3

63.1

103%

Services expense

233.7

242.7

246.5

254.4

261.1

190.4

179.9

94%

Selling, general and administrative expenses

43.8

45.8

43.9

43.2

44.0

33.0

32.8

99%

Segment Expenses

461.7

450.5

429.0

444.0

457.0

306.4

296.0

97%

Segment Profits

9.8

52.3

84.5

74.4

89.2

54.7

56.1

102%

Investment in Operating Leases

436.5

392.0

318.3

273.0

242.0

234.1

281.7

Property under Facility Operations

172.2

177.5

185.0

195.5

146.1

198.0

128.6

Advances for Finance Lease and Operating Lease

44.7

38.5

19.8

21.6

29.9

30.6

37.9

Investment in Affiliates

106.7

107.5

110.6

100.2

107.1

105.1

96.2

Segment Assets

1,054.9

917.7

843.9

802.0

720.2

791.3

756.1

ROA

0.57%

3.52%

6.55%

6.17%

8.03%

6.27%

6.94%

Copyright © 2020 ORIX Corporation All rights reserved.

10

Segment Performance（4）Investment and Operation

Segment Profits: 55.6 JPY bn

YoY +24.5 JPY bn (+79％)

  • Gains on sales in private equity investment posted in Q1 and Q3. Concession performed well
  • Solar power generation business in Japan remained strong

Segment Assets: 808.5 JPY bn

YTD +74.9 JPY bn (+10％)

  • Made wind power generation investees in overseas into our wholly owned subsidiaries
  • Operating assets related to environment and energy business increased due to new lease accounting standards (+40.0 JPY bn)

Segment Profits

(JPY Bn)

60

8.7

50

15.0

40

19.4

10.5

30

9.5

20

31.3

10.2

30.0

10

11.4

0

18.3 Q3

19.3 Q3

20.3 Q3

Investment and Operation

Enviroment and Energy

Concession

Segment Assets and ROA

Solar Power Generation Business in Japan

(JPY Bn)

(MW)

1,000

1,000

800

56.3

840

870

870

780

9.1%

49.2

750

700

44.8

650

600

483.2

570

395.6

6.6%

371.0

500

400

3.7%

200

250

258.8

288.9

268.9

0

0

18.3

19.3

20.3 Q3

17.3

17.9

18.3

18.9

19.3

19.9

19.12

Investment and Operation

Enviroment and Energy

Concession

Segment ROA (annualized and after-tax)

Business

Status

  • Private equity investment generated investment profit of more than 100 JPY bn in the last five years; exploring opportunities with a view to engage in long- term strategic investment. 2 new investments made in FY20.3
  • Solar power generation business in Japan is doing well (1GW secured including those plants under construction); also started to promote geothermal power and wind power

Copyright © 2020 ORIX Corporation All rights reserved.

11

Segment Performance（4）Investment and Operation

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Finance revenues

16.0

12.9

11.0

9.3

9.1

7.0

5.2

74%

Gains on investment securities and dividends

9.3

10.2

12.9

7.6

0.1

0.1

2.1

1423%

Sales of goods and real estate

276.5

596.7

825.0

924.2

436.0

371.2

197.5

53%

Services income

86.2

100.0

118.8

140.1

169.1

125.0

135.6

108%

Segment Revenues

389.7

721.4

970.0

1,083.5

615.2

504.0

341.3

68%

Interest expense

3.3

3.2

4.9

5.7

7.1

5.2

5.8

110%

Costs of goods and real estate sold

248.9

559.4

779.4

875.5

400.6

344.3

172.3

50%

Services expense

74.8

83.0

91.6

110.6

131.7

96.7

103.2

107%

Selling, general and administrative expenses

29.8

41.7

55.0

55.5

51.9

38.1

37.4

98%

Segment Expenses

358.9

687.6

937.1

1,047.3

591.7

484.6

318.8

66%

Equity in Net Income (Loss) of Affiliates and others

7.1

14.1

40.5

47.9

14.7

11.7

33.1

283%

Segment Profits

37.8

47.9

73.4

84.1

38.2

31.1

55.6

179%

Installment Loans

103.9

94.1

71.5

59.4

47.6

50.2

40.4

Investment in Securities

84.1

66.6

46.4

28.6

25.8

27.3

24.1

Property under Facility Operations

90.9

130.6

187.7

208.1

265.0

259.5

364.3

Inventories

30.8

21.1

24.8

24.3

30.8

31.0

32.1

Investment in Affiliates

35.6

91.8

60.3

156.9

162.0

161.4

148.9

Goodwill, Intangible Assets Acquired in Business Combinations

56.3

68.6

116.5

122.7

158.7

157.4

139.8

Segment Assets

458.4

540.4

593.8

674.6

733.6

735.9

808.5

ROA

5.77%

6.37%

8.84%

9.06%

3.71%

4.03%

6.58%

Copyright © 2020 ORIX Corporation All rights reserved.

12

Segment Performance（5）Retail

Segment Profits: 70.4 JPY bn

YoY +4.2 JPY bn (+6％)

  • Life insurance remained solid. Loss from variable life insurance posted in the previous year now gone
  • Finance revenues of banking increased

Segment Assets: 4,110.3 JPY bn YTD +538.9 JPY bn (+15％)

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

(JPY Bn)

Segment Profits

80

Segment Assets and ROA

Number of Insurance

Policies in Force

(JPY Bn)

(Millions of policies)

70

8.0

60

7.6

8.6

50

18.2

20.1

15.0

40

30

20

40.7

39.5

42.4

10

0

5,000

183.0

4,000

184.1

181.4

1.7%

1.7%

3,000

1.6%

2,369.9

2,132.7

2,000

1,937.4

1,000

1,254.7

1,557.4

1,055.6

0

5.00

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

3.72

3.49

3.94 4.104.26

4.46

18.3 Q3

19.3 Q3

20.3 Q3

Life Insurance

Banking

Credit

18.3

19.3

20.3 Q3

Life Insurance

Banking

Credit

Segment ROA (annualized and after-tax)

17.3

17.9

18.3

18.9

19.3

19.12

Business

✓ORIX Life Insurance expanded its product lineup. As a result, number of insurance policies increased steadily

Status

✓ORIX Bank increased its assets constantly while maintaining net interest margin at 2% level

Copyright © 2020 ORIX Corporation All rights reserved.

13

Segment Performance（5）Retail

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Finance revenues

56.8

61.0

68.1

72.9

76.7

57.6

60.2

104%

Life insurance premiums and related investment income

352.5

190.8

297.9

353.0

348.3

229.1

291.7

127%

Segment Revenues

426.1

254.4

368.7

428.7

428.9

289.3

355.5

123%

Interest expense

5.8

4.7

4.1

4.0

4.1

3.1

3.3

106%

Life insurance costs

272.0

122.0

201.4

256.3

247.8

153.7

210.3

137%

Selling, general and administrative expenses

60.5

67.5

77.0

79.2

78.7

56.3

58.5

104%

Provision for doubtful receivables and probable loan losses and

4.0

7.4

10.1

11.2

11.5

8.4

9.8

116%

write-downs of long-lived assets and securities

Segment Expenses

342.2

203.4

295.8

354.2

344.7

223.0

285.0

128%

Segment Profits

120.6

51.8

72.9

74.5

84.2

66.2

70.4

106%

Installment Loans

1,411.7

1,523.1

1,727.0

1,852.8

2,050.0

1,983.1

2,291.7

Investment in Securities

2,228.6

1,876.3

1,502.7

1,260.3

1,474.8

1,367.1

1,772.8

Segment Assets

3,717.2

3,472.1

3,293.4

3,174.5

3,571.4

3,396.1

4,110.3

ROA

2.62%

0.96%

1.47%

1.57%

1.71%

1.84%

1.68%

Copyright © 2020 ORIX Corporation All rights reserved.

14

Segment Performance（6）Overseas Business

Segment Profits: 131.9 JPY bn

YoY +36.3 JPY bn (+38%)

  • Profit from new investments in FY19.3 and gains on sales in Asia and U.S. contributed
  • Foreign exchange impact▲3.9 JPY bn

Segment Assets: 3,283.2 JPY bn YTD +144. 2 JPY bn (+5％)

  • Installment loans at OCU business and aircraft operating lease assets increased
  • Excluding foreign exchange impact of▲48.3 JPY bn, segment assets increased by 192.5 JPY bn

(JPY Bn)

Segment Profits

140

(JPY Bn)

3,500

Segment Assets and ROA

Contribution from New Investments

120

24.6

100

21.6

1.2

32.8

80

17.6

27.7

60

24.7

33.7

28.3

40

20

38.5

49.8

36.6

0

18.3 Q3

19.3 Q3

20.3 Q3

OCU

OCE

Aircraft, Ships

Asia and Australia, and other

OCU: ORIX Corporation USA

OCE: ORIX Corporation Europe

3,000

3.8%

996.7

1,052.0

2,500

3.0%

2.8%

2,000

1,003.6

678.4

646.3

1,500

381.7

336.2

343.1

1,000

353.8

500

869.7

1,152.9

1,216.6

0

18.3

19.3

20.3 Q3

OCU

OCE

Aircraft, Ships

Asia and Australia, and other

Segment ROA (annualized and after-tax)

Large-scale investment

Segment profits

In FY19.3

In FY20.3 Q3

NXT Capital

(Loan origination,

8.3

JPY Bn

asset management)

Avolon

14.1

JPY Bn

(Aircraft leasing)

Business

✓Continue to seek diversification of loan and asset management business in U.S. and Europe. Acquired all the shares of Hunt Real Estate Capital

Status

✓Pursue synergy with Avolon to further increase the scale of aircraft leasing business and enhance the presence

Copyright © 2020 ORIX Corporation All rights reserved.

15

Segment Performance（6）Overseas Business

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Finance revenues

67.3

79.4

85.1

98.4

111.6

80.5

93.6

116%

Gains on investment securities and dividends

29.8

16.1

13.3

17.5

16.6

5.5

23.5

425%

Operating leases

82.1

92.0

88.4

111.6

121.9

93.6

84.9

91%

Services income

321.5

250.1

216.7

238.6

233.1

179.4

162.6

91%

Segment Revenues

565.2

530.4

462.7

479.6

490.7

365.4

369.2

101%

Interest expense

34.0

37.7

40.3

51.5

62.8

44.5

51.5

116%

Costs of operating leases

49.7

56.0

54.9

64.4

62.5

46.7

47.6

102%

Services expense

76.2

76.0

65.6

70.4

66.5

50.8

42.5

84%

Selling, general and administrative expenses

216.3

197.8

169.3

177.9

183.7

134.3

139.5

104%

Segment Expenses

464.8

450.9

390.5

382.9

395.1

288.6

291.4

101%

Segment Profits

105.8

148.5

112.4

106.6

125.4

95.6

131.9

138%

Net Investment in Leases

386.6

351.0

357.7

368.7

362.4

364.3

370.6

Installment Loans

467.0

550.7

613.5

534.6

814.8

773.9

909.3

Investment in Operating Leases

279.2

376.2

420.6

491.1

509.1

503.4

554.1

Investment in Securities

382.1

354.2

433.3

413.4

385.3

412.1

396.2

Investment in Affiliates

209.0

305.7

332.2

314.6

556.7

565.3

558.5

Goodwill, Intangible Assets Acquired in Business Combinations

489.0

394.7

380.2

427.0

452.3

460.7

439.7

Segment Assets

2,280.1

2,399.3

2,578.1

2,608.8

3,138.9

3,148.8

3,283.2

ROA

3.13%

4.22%

3.08%

2.81%

2.99%

3.03%

3.75%

Copyright © 2020 ORIX Corporation All rights reserved.

16

Financial SoundnessFunding structure / Employed Capital Ratio

  • Funding Structure : Diversified funding methods and maintained a high ratio oflong-term debt
  • Employed Capital Ratio : Continue to pursue growth while controlling risk and return

Breakdown of Funding and

Trend in Long-term Debt Ratio*

(JPY Tn)

*Excluding deposits

(JPY Bn)

7

100%

Shareholder's Equity /

Employed Capital Ratio

6

5

4

3

2

1

0

15.3 16.3 17.3

Borrowings from Financial Institutions

Capital Markets（CP）

Long-term Debt Ratio（right axis）

80%

60%

40%

20%

0%

18.3 19.3 19.12

Capital Markets（Long-term）

Deposits

3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0

15.3

100%

88%

85%

85%

80%

2,682.4

2,897.1

3,008.4

60%

40%

16.3

17.3

18.3

19.3

19.12

Shareholders' Equity

Employed Capital Ratio

Copyright © 2020 ORIX Corporation All rights reserved.

17

Summary

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

Annualized ROE at 11.0%

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

Aiming for sustainable growth while

consideration to shareholders return continued

Copyright © 2020 ORIX Corporation All rights reserved.

18

Appendix

Copyright © 2020 ORIX Corporation All rights reserved.

19

Medium to Long-Term Strategic Directions

FY19.3 to FY21.3

（Revised strategic directions below was announced at Q2 financial results briefing on October 29, 2019)

Profit

FY20.3

Growth

Net income (Forecast) : 300 JPY bn (▲7% YoY,pre-taxprofit +9%)

FY21.3

Capital

Efficiency

Net income (Forecast) : To be announced in May 2020

Financial

Continue sound financial management(Maximum effort to maintain single A)

Soundness

Shareholders

1. The full year dividend will be either a payout ratio of 30% or 76 yen per share in FY20.3,

whichever is higher

Return

2. To be repurchased up to 100 JPY bn (Period November 2019 - May 2020)

Medium to Long-Term Strategic Directions

Capital Efficiency

ROE at 11% or higher

1. Consideration of minimum dividend per share

Shareholders

2. Consideration of proactive share buyback

Return

(In principle, cancel treasury shares that exceeds 5% of issued shares)

Copyright © 2020 ORIX Corporation All rights reserved.

20

About ORIXProven Track Record of Profitability

  • ORIX has achieved 54 years of sustained, profitable growth

(JPY Bn)

Net Income Attributable to ORIX Corporation Shareholders

350

300

250

FY2002.3

FY2009.3

Global financial crisis

Burst of IT bubble

200

FY1998.3

150

Asian currency crisis

FY1993.3

100

Burst of Japan's

bubble economy

50

0

1964

1975

1980

1985

1990

1995

2000

2005

2010

2015

2019

Copyright © 2020 ORIX Corporation All rights reserved.

21

About ORIXExpertise in Business and Collective Capabilities of the Group

  • ORIX will continue to enhance our expertise in finance and tangible assets as we synergistically expand our businesses

Copyright © 2020 ORIX Corporation All rights reserved.

22

About ORIXProfits and Assets by Segment

  • Individual businesses demonstrate their strengths to the maximum extent possible to bring about synergies

Corporate Financial

Finance and fee business

Services

Automobile leasing and rentals, car-sharing;

Maintenance Leasing

test and measurement instruments and IT-related equipment

rentals and leasing

Real Estate

Real estate development, rental and management;

facility operation; real estate investment management

Investment and

Environment and energy, private equity and concession

Operation

Retail

Life insurance, banking and consumer finance

4%7%

37%Segment Profits 16%

352.9 JPY Bn

FY20.3 Q3

16%

20%

9%

30%8%

Segment Assets 7%

Overseas Business

Asset management, aircraft- and ship-related operations,

private equity and finance

10.9 JPY Tn

FY20.3 Q3

38%

8%

Copyright © 2020 ORIX Corporation All rights reserved.

23

About ORIXGlobal Network

  • Using its expertise cultivated in Japan, ORIX has expanded its business globally, with operations in 37 countries and regions worldwide

Copyright © 2020 ORIX Corporation All rights reserved.

24

Appendix（1）Performance Overview

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Total Revenues

2,174.3

2,369.2

2,678.7

2,862.8

2,434.9

1,796.2

1,684.4

94%

Net Income *1

234.9

260.2

273.2

313.1

323.7

236.2

244.3

103%

Segment Assets

9,464.8

9,246.3

9,201.9

9,098.9

9,997.7

9,909.3

10,859.2

110%

Total Assets

11,439.9

10,992.9

11,231.9

11,426.0

12,174.9

12,121.8

12,843.0

106%

Shareholders' Equity

2,152.2

2,310.4

2,507.7

2,682.4

2,897.1

2,817.5

3,008.4

107%

Shareholders' Equity Ratio

18.8%

21.0%

22.3%

23.5%

23.8%

23.2%

23.4%

0.2%

ROE

11.5%

11.7%

11.3%

12.1%

11.6%

11.5%

11.0%

-0.5%

Return on Segment Assets (ROA)

2.77%

2.78%

2.96%

3.42%

3.39%

3.31%

3.12%

-0.19%

D/E Ratio

(Short and Long-Term Debt+Deposits)/Shareholders' Equity

2.7x

2.5x

2.3x

2.2x

2.2x

2.3x

2.2x

-0.1x

(Short and Long-Term Debt)/Shareholders' Equity

2.1x

1.9x

1.7x

1.5x

1.6x

1.6x

1.5x

-0.1x

*1 Net Income Attributable to ORIX Corporation Shareholders

*2 Accounting Standards Update 2016-02 (ASC 842 ("Leases")) has been applied since the first quarter of FY20.3

Copyright © 2020 ORIX Corporation All rights reserved.

25

Appendix（2）Profits by Segment

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Corporate Financial Services

25.5

42.4

38.0

49.3

25.5

19.8

13.2

67%

Maintenance Leasing

40.4

42.9

39.8

40.2

38.8

30.4

25.8

85%

Real Estate

9.8

52.3

84.5

74.4

89.2

54.7

56.1

102%

Investment and Operation

37.8

47.9

73.4

84.1

38.2

31.1

55.6

179%

Retail

120.6

51.8

72.9

74.5

84.2

66.2

70.4

106%

Overseas Business

105.8

148.5

112.4

106.6

125.4

95.6

131.9

138%

Total Segment Profits

339.8

385.7

420.9

429.1

401.4

297.8

352.9

119%

  • Since the fourth quarter of FY19.3, the segment classification of DAIKYO has been changed from Investment and Operation segment to Real Estate segment. Past segment information has been reclassified accordingly.

Copyright © 2020 ORIX Corporation All rights reserved.

26

Appendix（3）Assets by Segment

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YTD)

Corporate Financial Services

1,203.4

1,133.9

1,086.0

991.8

959.7

974.9

1,000.1

104%

Maintenance Leasing

750.7

783.0

806.7

847.2

873.8

862.4

900.9

103%

Real Estate

1,054.9

917.7

843.9

802.0

720.2

791.3

756.1

105%

Investment and Operation

458.4

540.4

593.8

674.6

733.6

735.9

808.5

110%

Retail

3,717.2

3,472.1

3,293.4

3,174.5

3,571.4

3,396.1

4,110.3

115%

Overseas Business

2,280.1

2,399.3

2,578.1

2,608.8

3,138.9

3,148.8

3,283.2

105%

Total Segment Assets

9,464.8

9,246.3

9,201.9

9,098.9

9,997.7

9,909.3

10,859.2

109%

  • Since the fourth quarter of FY19.3, the segment classification of DAIKYO has been changed from Investment and Operation segment to Real Estate segment. Past segment information has been reclassified accordingly.

Copyright © 2020 ORIX Corporation All rights reserved.

27

Appendix（4）Income Statement Data

（JPY Bn）

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Finance revenues

192.8

208.2

211.9

228.3

242.9

180.0

190.5

106%

Gains on investment securities and dividends

56.4

35.8

30.3

43.3

16.0

4.8

27.7

580%

Operating leases

124.9

128.8

155.1

127.3

156.6

121.8

105.8

87%

Life insurance premiums and related investment income

79.5

68.1

95.8

96.5

100.6

75.2

81.5

108%

Sales of goods and real estate

48.8

85.8

86.5

75.5

60.9

37.4

34.4

92%

Services income

334.0

282.5

275.4

298.1

310.5

241.7

224.8

93%

Gross Profits*1

836.5

809.2

854.9

869.1

887.4

660.8

664.7

101%

Interest expense

72.6

72.8

72.9

76.8

93.3

67.4

74.0

110%

Selling, general and administrative expenses

427.8

422.7

418.7

431.6

437.0

320.1

337.8

106%

Provisions/Impairments

55.5

29.7

38.4

24.0

26.3

14.9

16.3

109%

Other (income) and expense, net

23.7

-3.7

-4.4

0.4

1.3

0.2

-0.1

-

Operating Income

256.8

287.7

329.2

336.2

329.4

258.2

236.7

92%

Equity in Net Income of Affiliates

30.5

45.7

26.5

50.1

33.0

16.5

54.2

328%

Gains on Sales of Subsidiaries and Affiliates, etc.

56.7

57.9

69.2

49.2

33.3

20.5

59.5

291%

Income before Income Taxes

344.0

391.3

425.0

435.5

395.7

295.2

350.5

119%

Net Income Attributable to ORIX Corporation Shareholders

234.9

260.2

273.2

313.1

323.7

236.2

244.3

103%

*1 Each revenue component deducted with corresponding costs and expenses

Copyright © 2020 ORIX Corporation All rights reserved.

28

Appendix（5）Funding

（JPY Bn）

Funding

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

CP

89.6

102.4

50.1

54.9

41.1

188.6

84.3

-104.3

Borrowings from Financial Institutions

2,881.6

2,970.6

2,958.2

3,056.2

3,279.4

3,287.0

3,355.9

68.9

Bonds / MTN

1,151.5

938.1

885.1

940.1

997.5

954.8

930.8

-24.0

Deposits

1,287.4

1,398.5

1,614.6

1,757.5

1,927.7

1,884.6

2,169.1

284.5

ABS, CMBS

291.3

275.5

245.1

82.1

177.8

188.9

132.3

-56.6

Short-term Debt, Long-term Debt and Deposits

5,701.4

5,685.0

5,753.1

5,890.7

6,423.5

6,503.9

6,672.4

168.5

Share of Long-Term Debt

94%

92%

93%

93%

93%

86%

91%

5%

Liquidity (excl. ORIX Bank, ORIX Life Insurance)

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Cash and Cash Equivalents (1)

738.7

588.7

586.6

617.7

561.0

557.6

472.4

-85.2

Available Commitment Line (2)

419.4

389.9

394.0

332.7

346.6

253.2

336.9

83.7

Liquidity (1+2)

1,158.1

978.6

980.6

950.4

907.6

810.8

809.3

-1.5

Marketable Short-term Debt (3) *1

434.1

362.3

290.9

138.4

129.1

307.9

222.9

-85.0

Liquidity Coverage Ratio (1+2)/(3)

267%

270%

337%

687%

703%

263%

363%

100%

Funding Costs (including Deposits)

FY15.3

FY16.3

FY17.3

FY18.3

FY19.3

19.3 Q3

20.3 Q3

Change

(YoY)

Domestic Currency

0.76%

0.64%

0.50%

0.42%

0.40%

0.41%

0.38%

-0.03%

Foreign Currency

2.87%

2.74%

2.80%

2.76%

3.27%

3.23%

3.30%

0.07%

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

Copyright © 2020 ORIX Corporation All rights reserved.

29

Financials（1）Funding Structure

  • Diversified funding. Controlled costs while maintaining a highlong-term debt ratio

Breakdown of Funding

Trend in Funding Costs and

Long-term Debt Ratio*

*Excluding deposits

5.00%

100%

4.00%

80%

As of Dec 31, 2019

3.00%

60%

2.00%

40%

1.00%

20%

CP

0.00%

0%

1%

15.3

16.3

17.3

18.3

19.3

19.12

Funding Cost（left axis:JPY）Long-term Debt Ratio（right axis）

Funding Cost（left axis:Foreign Currency）

Copyright © 2020 ORIX Corporation All rights reserved.

30

Financials（2）Debt-to-Equity Ratio

  • Debt-to-EquityRatio continuously stays at a low level

Trend in Debt-to-Equity Ratio

(JPY Tn)

7

2.7×

6

2.5×

5

2.3×

2.2×

2.2×

2.2×

2.1×

1.9×

1.7×

4

1.5×

1.6×

1.5×

3

2

1

0

15.3

16.3

17.3

18.3

19.3

19.12

Total ORIX Corporation

Shareholders' Equity

Deposits

Short- and Long-Term Debt （Excluding Deposits)

Debt-to-Equity Ratio （Including Deposits)

Debt-to-Equity Ratio （Excluding Deposits)

Copyright © 2020 ORIX Corporation All rights reserved.

31

Financials（3）Bond Maturity Ladder

  • Leveled out annual redemption amounts by dispersing bond maturities

Maturity Ladder (As of Dec 31, 2019)

Copyright © 2020 ORIX Corporation All rights reserved.

32

Performance in Three Categories

See P.34 for details on the three categories

Growth in Finance will not be proactively sought under the current low interest rate environment; rather, efforts will be made to maintain the current status. Focus will continue to be put on Operation and Investment with high ROA performances.

Segment Profits

Finance

Operation

Investment

（JPY Bn）

（JPY Bn）

（JPY Bn）

Financial Services

Environment/Infrastructure

Fixed Income

Tangible Assets

Japan

Overseas

ROA (annualized and after-tax)

Maintenance Services

Others

Equity

ROA (annualized and after-tax)

ROA (annualized and after-tax)

200

200

200

4.7%

5.0%

5.0%

150

150

4.5%

4.4%

150

3.7%

100

100

100

50

1.7%

50

50

1.1%

1.1%

0

0

0

18.3 Q3

19.3 Q3

20.3 Q3

18.3 Q3

19.3 Q3

20.3 Q3

18.3 Q3

19.3 Q3

20.3 Q3

*No adjustments

Copyright © 2020 ORIX Corporation All rights reserved.

33

Business Portfolio in Three Categories

Finance

Operation

Investment

Main Risk

Credit risk

Operation/Business risk

Market risk

Category

Capital Requirement

Low

Medium-High

High

Corporate Financial

Services

Maintenance

Leasing

Real Estate

Segment

Investment and

Operation

Retail

Overseas Business

Japan

Overseas

Environment/

Financial

Maintenance

Others

Fixed

Tangible

Equity

Infrastructure

Services

Services

Income

Assets

Leasing, Loan,

Yayoi

New business

Fee business

development

ORIX Auto,

ORIX Rentec

Facility operation,

REIT,

RE investment

RE investment

DAIKYO

advisory

Environment and

Loan

energy,

PE investment

servicing

Concession

Banking,

Consumer finance,

Life insurance

Gurantee

Leasing, Loan

Asset

Bond

Aircraft, Ships

PE investment

Management

investment

Copyright © 2020 ORIX Corporation All rights reserved.

34

ShareholdersReturn

  • The interim dividend at 35 yen per share in FY20.3
  • The full year dividend in FY20.3 will be either a payout ratio of 30% or 76 yen per share, whichever is higher
  • Maintain optimal balance between investment opportunities for sustainable future profit growth and stable shareholders return

Dividend per Share and Payout Ratio

90

80

70

60

50

40

30

20

10

0

30%

33%

(JPY)

25%

27%

76.00

28%

23%

66.00

20%

23%

16%

52.25

46

41

45.75

18%

39

36.00

29.25

13%

23.75

23.00

8%

36

27

30

35

23

22

23

3%

-2%

14.3

15.3

16.3

17.3

18.3

19.3

20.3

(Forecast)

Year end dividend

Interim dividend

Copyright © 2020 ORIX Corporation All rights reserved.

35

Disclaimer

  • These materials have been prepared by ORIX Corporation ("ORIX" or the "Company") solely for your information and are subject to change without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No representations, warranties or undertakings, expressed or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness, or correctness of the information or the opinions presented or contained in these materials.
  • These materials containforward-looking statements that reflect the Company's intent, belief and current expectations about future events and financial results. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," "intends," or words of similar meaning. These forward-looking statements are not guarantees of future performance. They are based on a number of assumptions about the Company's operations and are subject to risks, uncertainties and other factors beyond the Company's control. Accordingly, actual results may differ materially from these forward-looking statements. Factors that could cause such differences include, but are not limited to, those described under "Risk Factors" in the Company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission and under "Business Risk" of the securities report (yukashouken houkokusho) filed with the Director of the Kanto Local Finance Bureau and of the consolidated financial results filed with the Tokyo Stock Exchange.
  • Some of the financial information in these materials is unaudited.
  • The Company believes that it will be considered a "passive foreign investment company" for United States Federal income tax purpose in the year to which these consolidated financial results relate and for the foreseeable future by reason of the composition of its assets and the nature of its income. A U.S. holder of the shares or ADSs of the Company is therefore subject to special rules generally intended to eliminate any benefits from the deferral of U.S. Federal income tax that a holder could derive from investing in a foreign corporation that does not distribute all of its earnings on a current basis. Investors should consult their tax advisors with respect to such rules, which are summarized in the Company's annual report.
  • Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by the Company or any affiliate thereof.

Copyright © 2020 ORIX Corporation All rights reserved.

36

For the current IR materials and archives of past financial data, please access our website.

IR Section

https://www.orix.co.jp/grp/en/ir/

IR Library

https://www.orix.co.jp/grp/en/ir/library/

ORIX Corporation

Corporate Planning Department

World Trade Center Building, 2-4-1,

Hamamatsu-cho,Minato-ku,

Tokyo 105-6135, Japan

Tel: +81-3-3435-3121

Fax: +81-3-3435-3154 orix_corpcomm@orix.jp

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ORIX Corporation published this content on 03 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2020 08:24:11 UTC