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    8591   JP3200450009

ORIX CORPORATION

(8591)
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Consolidated Financial Results April 1, 2021 - September 30, 2021 - Form 6-K

11/04/2021 | 05:34am EST

Consolidated Financial Results

April 1, 2021 - September 30, 2021

November 4, 2021

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.

These 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.

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 ADSs 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

Table of Contents

Consolidated Financial Results from April 1, 2021 to September 30, 2021

(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 Six Months Ended September 30, 2021

(1) Performance Highlights - Operating Results (Unaudited)

(millions of yen)*1

Total
Revenues
Year-on-Year
Change
Operating
Income
Year-on-Year
Change
Income before
Income Taxes
Year-on-Year
Change
Net Income
Attributable to
ORIX Corporation
Shareholders
Year-on-Year
Change

September 30, 2021

1,241,534 14.5 % 208,917 74.3 % 220,789 64.6 % 146,682 56.3 %

September 30, 2020

1,084,738 (4.5 %) 119,839 (25.9 %) 134,174 (41.3 %) 93,842 (41.0 %)

"Comprehensive Income Attributable to ORIX Corporation Shareholders" was ¥171,510 million for the six months ended September 30, 2021 (year-on-year change was a 94.7% increase) and ¥88,110 million for the six months ended September 30, 2020 (year-on-year change was a 28.6% decrease).

Basic
Earnings Per Share
Diluted
Earnings Per Share

September 30, 2021

121.12 121.00

September 30, 2020

75.22 75.16
*Note 1:

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.

(2) Performance Highlights - Financial Position (Unaudited)

Total
Assets
Total
Equity
Shareholders'
Equity
Shareholders'
Equity Ratio

September 30, 2021

13,834,678 3,208,499 3,117,654 22.5 %

March 31, 2021

13,563,082 3,103,144 3,028,456 22.3 %
*Note 2:

"Shareholders' Equity" refers to "Total ORIX Corporation Shareholders' Equity."

"Shareholders' Equity Ratio" is the ratio of "Total ORIX Corporation Shareholders' Equity" to "Total Assets."

2. Dividends (Unaudited)

First
Quarter-end
Second
Quarter-end
Third
Quarter-end
Year-end Total

March 31, 2021

- 35.00 - 43.00 78.00

March 31, 2022

- 39.00 - - -

March 31, 2022 (Est.)

- - - 39.00 78.00

3. Forecast for the Year Ending March 31, 2022 (Unaudited)

Net Income
Attributable to
ORIX Corporation Shareholders
Year-on-Year
Change

March 31, 2022

250,000 29.9 %
*Note 3:

Although forward-looking statements in this document are based on information currently available to, and 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) Adoption of Simplified Accounting Method Yes ( ) No ( x )
(3) Changes in Accounting Principles, Procedures and Disclosures

1. Changes due to adoption of new accounting standards

Yes ( x ) No ( )

2. Other than those above

Yes ( ) No ( x )
*Note 4:

For details, please refer to "2. Financial Information (6) Changes in Accounting Policies" on page 14.

(4) Number of Issued Shares (Ordinary Shares)

1. The number of issued shares, including treasury stock, was 1,285,724,480 as of September 30, 2021, and 1,285,724,480 as of March 31, 2021.

2. The number of treasury stock was 81,692,257 as of September 30, 2021, and 66,231,916 as of March 31, 2021.

3. The average number of outstanding shares was 1,211,057,955 for the six months ended September 30, 2021, and 1,247,495,423 for the six months ended September 30, 2020.

The Company's shares held through the Board Incentive Plan Trust (2,142,248 shares as of September 30, 2021 and 2,154,248 shares as of March 31, 2021) 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.

- 1 -

Table of Contents

1. Summary of Consolidated Financial Results

(1) Financial Highlights

Financial Results for the Six Months Ended September 30, 2021

Six months
ended
September 30, 2020
Six months
ended
September 30, 2021
Change
Amount Percent

Total Revenues

(millions of yen) 1,084,738 1,241,534 156,796 14 %

Total Expenses

(millions of yen) 964,899 1,032,617 67,718 7 %

Income before Income Taxes

(millions of yen) 134,174 220,789 86,615 65 %

Net Income Attributable to ORIX Corporation Shareholders

(millions of yen) 93,842 146,682 52,840 56 %

Earnings Per Share (Basic)

(yen) 75.22 121.12 45.90 61 %
(Diluted) (yen) 75.16 121.00 45.84 61 %

ROE (Annualized) *1

(%) 6.3 9.5 3.2 -

ROA (Annualized) *2

(%) 1.43 2.14 0.71 -
*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.

Overview of Business Performance (April 1, 2021 to September 30, 2021)

Total revenues for the six months ended September 30, 2021 (hereinafter, "the second consolidated period") increased 14% to ¥1,241,534 million compared to ¥1,084,738 million during the same period of the previous fiscal year due to increases in services income, sales of goods and real estate, gains on investment securities and dividends, and operating leases revenues.

Total expenses increased 7% to ¥1,032,617 million compared to ¥964,899 million during the same period of the previous fiscal year due to increases in services expense, costs of goods and real estate sold, selling, general and administrative expenses and costs of operating leases.

Equity in net income (loss) of affiliates increased 136% to ¥5,399 million compared to ¥2,289 million and gains on sales of subsidiaries and affiliates and liquidation losses, net decreased 16% to ¥6,473 million compared to ¥7,681 million during the same period of the previous fiscal year.

Due to the above results, income before income taxes for the second consolidated period increased 65% to ¥220,789 million compared to ¥134,174 million during the same period of the previous fiscal year and net income attributable to ORIX Corporation shareholders increased 56% to ¥146,682 million compared to ¥93,842 million during the same period of the previous fiscal year.

- 2 -

Table of Contents

Segment Information

Total segment profits for the second consolidated period increased 53% to ¥240,140 million compared to the same period of the previous fiscal year.

Since April 1, 2021, a portion of interest expenses, which were initially included in the difference between segment total profits and consolidated amounts, have been charged directly to its respective segments. In addition, a portion of selling, general and administrative expenses, which were initially recorded in each its respective segments, have been included in the difference between segment total profits and consolidated amounts. Furthermore, a portion of the leasing business in the Environment and Energy segment was transferred to the Corporate Financial Services and Maintenance Leasing segment. As a result of these changes, segment assets information as of March 31, 2021 and segment profits information for the six months ended September 30, 2020 has been retrospectively restated.

Segment information for the second consolidated period 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; Yayoi

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

31,094 52,401 21,307 69
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,676,063 1,659,642 (16,421 ) (1 )

Segment profits increased 69% to ¥52,401 million compared to the same period of the previous fiscal year. This increase was due to an increase in gains on investment securities and dividends resulting from the listing of an investee, and an increase in operating leases revenues resulting from an increase in gains on sales of used cars in our automobile-related businesses and an increase in lending of electronic measuring instruments and ICT-related equipment in our rental business.

Segment assets decreased 1% to ¥1,659,642 million compared to the end of the previous fiscal year. This decrease was due to decreases in net investment in leases and investment in operating leases.

- 3 -

Table of Contents

Real Estate: Real estate development, rental and management; facility operations; real estate asset management

Six months ended

September 30, 2020

(millions of yen)

Six months ended

September 30, 2021

(millions of yen)

Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

11,009 23,860 12,851 117

As of March 31, 2021

(millions of yen)

As of September 30, 2021

(millions of yen)

Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

872,095 878,068 5,973 1

Segment profits increased 117% to ¥23,860 million compared to the same period of the previous fiscal year. This increase was due to an increase in sales of real estate by DAIKYO INCORPORATED and its subsidiaries, and an increase in operating leases revenues resulting from sales of real estate under operating leases.

Segment assets increased 1% to ¥878,068 million compared to the end of the previous fiscal year. This increase was due to an increase in advances for finance lease and operating lease.

PE Investment and Concession: Private equity investment; concession

Six months ended

September 30, 2020

(millions of yen)

Six months ended

September 30, 2021

(millions of yen)

Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

4,294 1,834 (2,460 ) (57 )

As of March 31, 2021

(millions of yen)

As of September 30, 2021

(millions of yen)

Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

378,698 368,794 (9,904 ) (3 )

Segment profits decreased 57% to ¥1,834 million compared to the same period of the previous fiscal year. This decrease was due to the recording write-down of inventories at a certain investee, and a decrease in equity in net income (loss) of affiliates at our three airports in Kansai in our concession business.

Segment assets decreased 3% to ¥368,794 million compared to the end of the previous fiscal year. This decrease was due to a decrease in inventories at a certain investee.

- 4 -

Table of Contents

Environment and Energy: Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels and electricity storage system; recycling and waste management

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

13,599 9,663 (3,936 ) (29 )
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

489,174 695,445 206,271 42

Segment profits decreased 29% to ¥9,663 million compared to the same period of the previous fiscal year. This decrease was due to the absence of bargain purchase gains recorded in the same period of the previous fiscal year resulting from the conversion of an investee involved in wind power generation business in India into a wholly owned subsidiary.

Segment assets increased 42% to ¥695,445 million compared to the end of the previous fiscal year. This increase was due to the recording of property under facility operations and goodwill resulting from the acquisition of a subsidiary.

Insurance: Life insurance

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

35,308 33,009 (2,299 ) (7 )
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,959,521 1,962,961 3,440 0

Despite an increase in life insurance premiums and related investment income in line with an increase in insurance contracts, segment profits decreased 7% to ¥33,009 million compared to the same period of the previous fiscal year due to a decrease in reversal of policy liability reserve related to variable life insurance contracts.

Segment assets totaled ¥1,962,961 million, remaining unchanged compared to the end of the previous fiscal year.

- 5 -

Table of Contents

Banking and Credit: Banking and consumer finance

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

25,170 22,065 (3,105 ) (12 )
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

2,690,627 2,709,991 19,364 1

Segment profits decreased 12% to ¥22,065 million compared to the same period of the previous fiscal year. This decrease was due to the recording reversal of provision for credit losses at ORIX Credit in the same period of the previous fiscal year, which was affected by sluggish demand for funds. In addition, there was the absence of restrained advertising expenses in the same period of the previous fiscal year.

Segment assets increased 1% to ¥2,709,991 million compared to the end of the previous fiscal year. This increase was due to an increase in installment loans.

Aircraft and Ships: Aircraft leasing and management; ship-related finance and investment

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

5,527 618 (4,909 ) (89 )
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

601,762 615,640 13,878 2

Segment profits decreased 89% to ¥618 million compared to the same period of the previous fiscal year. This decrease was due to a decrease in equity in net income (loss) of affiliates, as Avolon Holdings Limited recorded losses, despite an increase in services income in our ship-related businesses.

Segment assets increased 2% to ¥615,640 million compared to the end of the previous fiscal year. This increase was due to increases in investment in operating leases and installment loans.

- 6 -

Table of Contents

ORIX USA: Finance, investment and asset management in the Americas

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

9,881 47,614 37,733 382
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,220,081 1,188,438 (31,643 ) (3 )

Segment profits increased 382% to ¥47,614 million compared to the same period of the previous fiscal year. This increase was due to an increase in gains on investment securities and dividends resulting from the sales of investees, and a decrease in provision for credit losses.

Segment assets decreased 3% to ¥1,188,438 million compared to the end of the previous fiscal year. This decrease was due to a decrease in installment loans.

ORIX Europe: Asset management of global equity and fixed income

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

17,103 28,591 11,488 67
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

369,546 397,073 27,527 7

Segment profits increased 67% to ¥28,591 million compared to the same period of the previous fiscal year. This increase was due to an increase in services income resulting from an increase in the average amount of assets under management.

Segment assets increased 7% to ¥397,073 million compared to the end of the previous fiscal year. This increase was due to an increase in investment in securities.

- 7 -

Table of Contents

Asia and Australia: Finance and investment businesses in Asia and Australia

Six months ended
September 30, 2020
(millions of yen)
Six months ended
September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

3,791 20,485 16,694 440
As of March 31, 2021
(millions of yen)
As of September 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,084,222 1,125,430 41,208 4

Segment profits increased 440% to ¥20,485 million compared to the same period of the previous fiscal year. This increase was due to an increase in finance revenues in China, South Korea and Australia, an increase in gains on investment securities and dividends, and the absence of the recording of an impairment loss on an investment in an affiliate recorded in the same period of the previous fiscal year.

Segment assets increased 4% to ¥1,125,430 million compared to the end of the previous fiscal year. This increase was due to increases in net investment in leases, and installment loans in China, South Korea, and Australia.

- 8 -

Table of Contents

(2) Consolidated Financial Condition

Summary of Assets, Liabilities, Shareholders' Equity

As of March 31,
2021
As of September 30,
2021
Change
Amount Percent

Total Assets

(millions of yen ) 13,563,082 13,834,678 271,596 2 %

(Segment Assets)

11,341,789 11,601,482 259,693 2 %

Total Liabilities

(millions of yen ) 10,459,938 10,626,179 166,241 2 %

(Short-term and Long-term Debt)

4,724,102 4,845,470 121,368 3 %

(Deposits)

2,317,785 2,286,082 (31,703 ) (1 )%

Shareholders' Equity

(millions of yen ) 3,028,456 3,117,654 89,198 3 %

Shareholders' Equity Per Share

(yen) 2,487.77 2,593.96 106.19 4 %

Note 1:

Shareholders' Equity refers to ORIX Corporation Shareholders' Equity based on U.S. GAAP.

Note 2:

Shareholders' Equity Per Share is calculated using total ORIX Corporation Shareholders' Equity.

Total assets increased 2% to ¥13,834,678 million compared to ¥13,563,082 million at the end of the previous fiscal year due to increases in property under facility operations, cash and cash equivalents, and other assets despite a decrease in trade notes, accounts and other receivable. In addition, segment assets increased 2% to ¥11,601,482 million compared to the end of the previous fiscal year.

Total liabilities increased 2% to ¥10,626,179 million compared to ¥10,459,938 million at the end of the previous fiscal year due to increases in short-term debt and policy liabilities and policy account balances despite decreases in long-term debt, deposits and trade notes, accounts and other payable.

Shareholders' equity increased 3% to ¥3,117,654 million compared to the end of the previous fiscal year.

- 9 -

Table of Contents

2. Financial Information

(1) Condensed Consolidated Balance Sheets (Unaudited)

(millions of yen)

Assets

As of March 31,
2021
As of September 30,
2021

Cash and Cash Equivalents

951,242 1,030,893

Restricted Cash

128,333 130,999

Net Investment in Leases

1,029,518 1,033,684

Installment Loans

3,670,784 3,672,574

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2021

¥63,272 million

September 30, 2021

¥73,857 million

Allowance for Credit Losses

(78,945 ) (77,571 )

Investment in Operating Leases

1,408,189 1,426,860

Investment in Securities

2,660,443 2,701,122

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2021

¥9,384 million

September 30, 2021

¥15,983 million

The amounts which are associated to available-for-sale debt securities are as follows:

March 31, 2021

Amortized Cost

¥2,026,767 million

Allowance for Credit Losses

¥(120) million

September 30, 2021

Amortized Cost

¥2,062,605 million

Allowance for Credit Losses

¥(121) million

Property under Facility Operations

491,855 602,432

Investment in Affiliates

887,764 908,340

Trade Notes, Accounts and Other Receivable

354,334 288,311

Inventories

142,156 132,891

Office Facilities

246,399 244,040

Other Assets

1,671,010 1,740,103

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2021

¥6,297 million

September 30, 2021

¥5,564 million

Total Assets

13,563,082 13,834,678

Liabilities and Equity

Short-term Debt

307,269 493,976

Deposits

2,317,785 2,286,082

Trade Notes, Accounts and Other Payable

260,712 230,282

Policy Liabilities and Policy Account Balances

1,822,422 1,885,834

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2021

¥266,422 million

September 30, 2021

¥226,221 million

Current and Deferred Income Taxes

363,460 412,267

Long-term Debt

4,416,833 4,351,494

Other Liabilities

971,457 966,244

Total Liabilities

10,459,938 10,626,179

Commitments and Contingent Liabilities

Common Stock

221,111 221,111

Additional Paid-in Capital

259,361 259,802

Retained Earnings

2,744,588 2,839,047

Accumulated Other Comprehensive Income (Loss)

(84,650 ) (59,822 )

Treasury Stock, at Cost

(111,954 ) (142,484 )

Total ORIX Corporation Shareholders' Equity

3,028,456 3,117,654

Noncontrolling Interests

74,688 90,845

Total Equity

3,103,144 3,208,499

Total Liabilities and Equity

13,563,082 13,834,678

- 10 -

Table of Contents
Note :

Breakdown of Accumulated Other Comprehensive Income (Loss)

As of March 31,
2021
As of September 30,
2021

Accumulated Other Comprehensive Income (Loss)

Net unrealized gains on investment in securities

(16,208 ) (7,888 )

Debt valuation adjustments

558 497

Defined benefit pension plans

(21,073 ) (20,923 )

Foreign currency translation adjustments

(36,456 ) (22,139 )

Net unrealized losses on derivative instruments

(11,471 ) (9,369 )

Total

(84,650 ) (59,822 )

- 11 -

Table of Contents

(2) Condensed Consolidated Statements of Income (Unaudited)

(millions of yen)

Six months
ended
September 30, 2020
Six months
ended
September 30, 2021
Revenues :

Finance revenues

131,904 137,191

Gains on investment securities and dividends

12,832 45,744

Operating leases

197,961 227,933

Life insurance premiums and related investment income

233,751 232,797

Sales of goods and real estate

192,653 230,655

Services income

315,637 367,214

Total Revenues

1,084,738 1,241,534
Expenses :

Interest expense

42,161 33,432

Costs of operating leases

145,810 159,578

Life insurance costs

173,025 174,215

Costs of goods and real estate sold

163,538 204,182

Services expense

202,118 223,630

Other (income) and expense

7,833 (10,558 )

Selling, general and administrative expenses

218,619 245,884

Provision for credit losses

7,336 2,106

Write-downs of long-lived assets

583 88

Write-downs of securities

3,876 60

Total Expenses

964,899 1,032,617

Operating Income

119,839 208,917

Equity in Net Income (Loss) of Affiliates

2,289 5,399

Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net

7,681 6,473

Bargain Purchase Gain

4,365 0

Income before Income Taxes

134,174 220,789

Provision for Income Taxes

38,682 68,070

Net Income

95,492 152,719

Net Income Attributable to the Noncontrolling Interests

1,673 6,037

Net Income (Loss) Attributable to the Redeemable Noncontrolling Interests

(23 ) 0

Net Income Attributable to ORIX Corporation Shareholders

93,842 146,682

- 12 -

Table of Contents

(3) Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(millions of yen)
Six months
ended
September 30, 2020
Six months
ended
September 30, 2021

Net Income :

95,492 152,719

Other comprehensive income (loss), net of tax:

Net change of unrealized gains (losses) on investment in securities

1,879 8,320

Net change of debt valuation adjustments

(534 ) (61 )

Net change of defined benefit pension plans

125 149

Net change of foreign currency translation adjustments

(8,749 ) 14,932

Net change of unrealized gains (losses) on derivative instruments

(520 ) 2,170

Total other comprehensive income (loss)

(7,799 ) 25,510

Comprehensive Income

87,693 178,229

Comprehensive Income (Loss) Attributable to the Noncontrolling Interests

(114 ) 6,719

Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests

(303 ) 0

Comprehensive Income Attributable to ORIX Corporation Shareholders

88,110 171,510

(4) Assumptions for Going Concern

There is no corresponding item.

(5) Significant Changes in Shareholders' Equity

There is no corresponding item.

- 13 -

Table of Contents

(6) Changes in Accounting Policies

(Adoption of New Accounting Standards)

In December 2019, Accounting Standards Update 2019-12 ("Simplifying the Accounting for Income Taxes"-ASC 740 ("Income Taxes")) was issued. This update removes the exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, the exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and other exceptions. This update also simplifies certain other elements of the accounting for income taxes. The income tax simplifications related to changes in ownership of foreign equity method investments and foreign subsidiaries shall be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The other amendments in this update shall be applied on a retrospective basis to all periods presented, or on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, or on a prospective basis. The Company and its subsidiaries adopted this update on April 1, 2021. The effects of adopting this update on the Company and its subsidiaries' financial position at the adoption date were a decrease of ¥215 million in current and deferred income taxes and an increase of ¥215 million in retained earnings in the consolidated balance sheets. There is no material effect on the Company and its subsidiaries' results of operation and financial position as of and for the six months ended September 30, 2021 by adopting this update, as compared to the guidance that was in effect before the change.

- 14 -

Table of Contents

(7) Segment Information (Unaudited)

Segment Information by Sector

(millions of yen)
Six Months ended
September 30, 2020
Six Months ended
September 30, 2021
March 31,
2021
September 30,
2021
Segment
Revenues
Segment
Profits
Segment
Revenues
Segment
Profits
Segment
Assets
Segment
Assets

Corporate Financial Services and Maintenance Leasing

209,144 31,094 230,275 52,401 1,676,063 1,659,642

Real Estate

167,276 11,009 202,514 23,860 872,095 878,068

PE Investment and Concession

157,826 4,294 192,150 1,834 378,698 368,794

Environment and Energy

70,865 13,599 63,898 9,663 489,174 695,445

Insurance

235,754 35,308 235,088 33,009 1,959,521 1,962,961

Banking and Credit

41,661 25,170 43,097 22,065 2,690,627 2,709,991

Aircraft and Ships

14,876 5,527 17,748 618 601,762 615,640

ORIX USA

57,859 9,881 84,988 47,614 1,220,081 1,188,438

ORIX Europe

73,046 17,103 101,104 28,591 369,546 397,073

Asia and Australia

58,962 3,791 71,705 20,485 1,084,222 1,125,430

Segment Total

1,087,269 156,776 1,242,567 240,140 11,341,789 11,601,482

Difference between Segment Total and Consolidated Amounts

(2,531 ) (22,602 ) (1,033 ) (19,351 ) 2,221,293 2,233,196

Consolidated Amounts

1,084,738 134,174 1,241,534 220,789 13,563,082 13,834,678
Note 1:

The Company evaluates the performance of segments based on income before income taxes, adjusted for net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests before applicable tax effect. Tax expenses are not included in segment profits.

Note 2:

Since April 1, 2021, a portion of interest expenses, which were initially included in the difference between segment total profits and consolidated amounts, have been charged directly to its respective segments. In addition, a portion of selling, general and administrative expenses, which were initially recorded in each its respective segments, have been included in the difference between segment total profits and consolidated amounts. Furthermore, a portion of the leasing business in the Environment and Energy segment was transferred to the Corporate Financial Services and Maintenance Leasing segment. As a result of these changes, segment assets information as of March 31, 2021 and financial information of the segments for the six months ended September 30, 2020 has been retrospectively restated.

Note 3:

Inter-segment transactions are included in segment revenues, and eliminations of inter-segment transactions are included in difference between segment total and consolidated amounts.

(8) Subsequent Events

There are no material subsequent events.

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Table of Contents

Notice regarding Share Repurchase Status

TOKYO, Japan - November 4, 2021- ORIX Corporation hereby announces the status regarding its share repurchase pursuant to the provisions of its Articles of Incorporation and Article 459, Paragraph 1 of the Companies Act, which was resolved at its Board of Directors meeting held on May 13, 2021, as follows.

1.  Class of shares repurchased

Common shares

2.  Total number of shares repurchased

3,615,900 shares

3.  Total purchase price of shares repurchased

JPY 7,809,925,650

4.  Repurchase Period

October 1, 2021 - October 31, 2021

5.  Method of share repurchase

Market purchases based on the discretionary dealing contract regarding repurchase of own shares

(Reference)

1.  Details of the resolution reached at the Board of Directors meeting held on May 13, 2021

(1)   Class of shares to be repurchased

Common shares

(2)   Total number of shares to be repurchased

Up to 50,000,000 shares
(approx.4.1% of the total outstanding shares (excluding treasury shares))

(3)   Total purchase price of shares to be repurchased

Up to 50 billion yen

(4)   Repurchase Period

From May 17, 2021 to March 31, 2022

(5)   Method of share repurchase

Market purchases based on the discretionary dealing contract regarding repurchase of own shares

2.  Cumulative number of shares repurchased based on the above resolution at the Board of Directors Meeting (as of October 31, 2021)

(1)   Total number of shares repurchased

19,076,000 shares

(2)   Total purchase price of shares repurchased

JPY 38,356,743,950

Contact Information:

Investor Relations and Sustainability Department

ORIX Corporation

Tel: +81-3-3435-3121

Table of Contents

About ORIX:

ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.

Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 31 countries and regions across the world.

Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/

(As of March 31, 2021)

Caution Concerning Forward Looking Statements:

These 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 that 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 and under "(4) Risk Factors" of the "1. Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2020 - March 31, 2021."

Disclaimer

ORIX Corporation published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 10:33:32 UTC.


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Sales 2022 2 519 B 22 151 M 22 151 M
Net income 2022 293 B 2 576 M 2 576 M
Net Debt 2022 6 514 B 57 285 M 57 285 M
P/E ratio 2022 10,1x
Yield 2022 3,31%
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EV / Sales 2022 3,73x
EV / Sales 2023 3,65x
Nbr of Employees 33 153
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Number of Analysts 13
Last Close Price 2 481,00 JPY
Average target price 2 519,23 JPY
Spread / Average Target 1,54%
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Managers and Directors
Makoto Inoue Executive Officer
Hitomaro Yano Deputy General Manager-Finance
Stan H. Koyanagi Director & Global General Counsel
Tomoko Kageura Executive Officer, GM-Compliance & Legal Affairs
Shuji Irie Deputy General Manager-Business Investment
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