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    8591   JP3200450009

ORIX CORPORATION

(8591)
  Report
Delayed Japan Exchange  -  05/20 02:00:00 am EDT
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ORIX : Consolidated Financial Results April 1, 2021 - June 30, 2021 (Form 6-K)

08/03/2021 | 07:03am EDT

Consolidated Financial Results

April 1, 2021 - June 30, 2021

August 3, 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 June 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 Three Months Ended June 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

June 30, 2021

608,813 13.2 % 101,979 124.1 % 100,056 47.9 % 65,216 30.3 %

June 30, 2020

537,641 (2.0 %) 45,516 (39.8 %) 67,631 (31.6 %) 50,048 (27.7 %)

'Comprehensive Income Attributable to ORIX Corporation Shareholders' was ¥81,293 million for the three months ended June 30, 2021 (year-on-year change was a 77.2% increase) and ¥45,876 million for the three months ended June 30, 2020 (year-on-year change was a 5.7% decrease).

Basic
Earnings Per Share
Diluted
Earnings Per Share

June 30, 2021

53.65 53.61

June 30, 2020

40.08 40.05
*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

June 30, 2021

13,581,966 3,115,251 3,047,532 22.4 %

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

- - - - -

March 31, 2022 (Est.)

- 39.00 - 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 adoptions 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 June 30, 2021, and 1,285,724,480 as of March 31, 2021.

2. The number of treasury stock was 71,528,557 as of June 30, 2021, and 66,231,916 as of March 31, 2021.

3. The average number of outstanding shares was 1,215,578,051 for the three months ended June 30, 2021, and 1,248,752,101 for the three months ended June 30, 2020.

The Company's shares held through the Board Incentive Plan Trust (2,154,248 shares as of June 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 Three Months Ended June 30, 2021

Three months
ended
June 30, 2020
Three months
ended
June 30, 2021
Change
Amount Percent

Total Revenues

(millions of yen) 537,641 608,813 71,172 13 %

Total Expenses

(millions of yen) 492,125 506,834 14,709 3 %

Income before Income Taxes

(millions of yen) 67,631 100,056 32,425 48 %

Net Income Attributable to ORIX Corporation Shareholders

(millions of yen) 50,048 65,216 15,168 30 %

Earnings Per Share (Basic)

(yen) 40.08 53.65 13.57 34 %

(Diluted)

(yen) 40.05 53.61 13.56 34 %

ROE (Annualized) *1

(%) 6.8 8.6 1.8 -

ROA (Annualized) *2

(%) 1.53 1.92 0.39 -
*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 June 30, 2021)

Total revenues for the three months ended June 30, 2021 (hereinafter, 'the first consolidated period') increased 13% to ¥608,813 million compared to ¥537,641 million during the same period of the previous fiscal year due to increases in services income, gains on investment securities and dividends, and operating leases revenues despite a decrease in life insurance premiums and related investment income.

Total expenses increased 3% to ¥506,834 million compared to ¥492,125 million during the same period of the previous fiscal year due to increases in selling, general and administrative expenses, services expense and costs of operating leases despite decreases in provision for credit losses and life insurance costs.

On the other hand, equity in net income (loss) of affiliates decreased by ¥17,350 million to losses of ¥4,920 million compared to the same period of the previous fiscal year, and gains on sales of subsidiaries and affiliates and liquidation losses, net decreased by ¥2,323 million to ¥2,997 million compared to the same period of the previous fiscal year.

Due to the above results, income before income taxes for the first consolidated period increased 48% to ¥100,056 million compared to ¥67,631 million during the same period of the previous fiscal year and net income attributable to ORIX Corporation shareholders increased 30% to ¥65,216 million compared to ¥50,048 million during the same period of the previous fiscal year.

- 2 -

Table of Contents

Segment Information

Total segment profits for the first consolidated period increased 36% to ¥106,881 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 data for the three months ended June 30, 2020 has been retrospectively restated.

Segment information for the first consolidated period is as follows:

Corporate Financial Services and Maintenance Leasing: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and IT-related equipment; Yayoi

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

13,292 20,279 6,987 53
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,676,063 1,635,925 (40,138 ) (2 )

Segment profits increased 53% to ¥20,279 million compared to the same period of the previous fiscal year. This increase was due to 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 IT-related equipment in the rental business.

Segment assets decreased 2% to ¥1,635,925 million compared to the end of the previous fiscal year. This decrease was due to decreases in net investment in leases, installment loans and investment in operating leases.

- 3 -

Table of Contents

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

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

1,850 11,013 9,163 495
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

872,095 864,348 (7,747 ) (1 )

Segment profits increased 495% to ¥11,013 million compared to the same period of the previous fiscal year. This increase was due to an increase in operating leases revenues resulting from sales of real estate under operating leases.

Segment assets decreased 1% to ¥864,348 million compared to the end of the previous fiscal year. This decrease was due to a decrease in investment in operating leases, despite an increase in advances for finance lease and operating lease.

PE Investment and Concession: Private equity investment; concession

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

4,601 268 (4,333 ) (94 )
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

378,698 382,004 3,306 1

Segment profits decreased 94% to ¥268 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 at our three airports in Kansai in our concession business.

Segment assets increased 1% to ¥382,004 million compared to the end of the previous fiscal year. This increase was due to the allocation of acquisition costs of a subsidiary acquired during the nine months ended December 31, 2020.

- 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

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

7,721 4,489 (3,232 ) (42 )
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

489,174 490,892 1,718 0

Segment profits decreased 42% to ¥4,489 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.

Despite an increase in investment in affiliates, segment assets totaled ¥490,892 million, remaining unchanged compared to the end of the previous fiscal year due to a decrease in property under facility operations.

Insurance: Life insurance

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

18,255 15,489 (2,766 ) (15 )
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,959,521 1,951,533 (7,988 ) (0 )

Despite an increase in life insurance premiums in line with an increase in new insurance contracts, segment profits decreased 15% to ¥15,489 million compared to the same period of the previous fiscal year due to the absence of the reversal of policy liability reserve related to variable life insurance contracts recorded in the same period of the previous fiscal year.

Segment assets totaled ¥1,951,533 million, remaining unchanged compared to the end of the previous fiscal year.

- 5 -

Table of Contents

Banking and Credit: Banking and consumer finance

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

11,903 12,759 856 7
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

2,690,627 2,702,780 12,153 0

Segment profits increased 7% to ¥12,759 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.

Segment assets totaled ¥2,702,780 million, remaining unchanged compared to the end of the previous fiscal year.

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

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

7,584 (4,831 ) (12,415 ) -
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

601,762 593,642 (8,120 ) (1 )

Segment profits deceased by ¥12,415 million to losses of ¥4,831 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.

Segment assets decreased 1% to ¥593,642 million compared to the end of the previous fiscal year. This decrease was due to a decrease in investment in operating leases.

- 6 -

Table of Contents

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

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

(585 ) 25,163 25,748 -
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,220,081 1,210,777 (9,304 ) (1 )

Segment profits increased by ¥25,748 million to ¥25,163 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 the absence of provision for credit losses recorded in the same period of the previous fiscal year.

Segment assets decreased 1% to ¥1,210,777 million compared to the end of the previous fiscal year. This decrease was due to a decrease in investment in securities.

ORIX Europe: Asset management of global equity and fixed income

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

7,189 13,472 6,283 87
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

369,546 368,030 (1,516 ) (0 )

Segment profits increased 87% to ¥13,472 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.

Despite an increase in goodwill, intangible assets acquired in business combinations due to the effect of changes in foreign exchange rates, segment assets totaled ¥368,030 million, remaining unchanged compared to the end of the previous fiscal year due to a decrease investment in securities.

- 7 -

Table of Contents

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

Three months ended
June 30, 2020
(millions of yen)
Three months ended
June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Profits

6,857 8,780 1,923 28
As of March 31, 2021
(millions of yen)
As of June 30, 2021
(millions of yen)
Change
Amount
(millions of yen)
Percent
(%)

Segment Assets

1,084,222 1,111,153 26,931 2

Segment profits increased 28% to ¥8,780 million compared to the same period of the previous fiscal year. This increase was due to increases in finance revenues and operating leases revenues, and a decrease in provision for credit losses, partially offset by the absence of gains on sales of subsidiaries and affiliates in Asia recorded in the same period of the previous fiscal year.

Segment assets increased 2% to ¥1,111,153 million compared to the end of the previous fiscal year. This increase was due to increases in net investment in leases in China, and installment loans in South Korea.

- 8 -

Table of Contents

(2) Consolidated Financial Condition

Summary of Assets, Liabilities, Shareholders' Equity

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

Total Assets

(millions of yen ) 13,563,082 13,581,966 18,884 0 %

(Segment Assets)

11,341,789 11,311,084 (30,705 ) (0 )%

Total Liabilities

(millions of yen ) 10,459,938 10,466,715 6,777 0 %

(Short-term and Long-term Debt)

4,724,102 4,775,489 51,387 1 %

(Deposits)

2,317,785 2,290,606 (27,179 ) (1 )%

Shareholders' Equity

(millions of yen ) 3,028,456 3,047,532 19,076 1 %

Shareholders' Equity Per Share

(yen) 2,487.77 2,514.38 26.61 1 %

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 remained flat at ¥13,581,966 million compared to the end of the previous fiscal year due to increases in other assets and cash and cash equivalents being offset by decreases in investment in securities, and trade notes, accounts and other receivable. In addition, segment assets remained flat at ¥11,311,084 million compared to the end of the previous fiscal year.

Total liabilities remained flat at ¥10,466,715 million compared to the end of the previous fiscal year due to an increase in short- term debt being offset by decreases in long- term debt, and trade notes, accounts and other payable.

Shareholders' equity increased 1% to ¥3,047,532 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 June 30,
2021

Cash and Cash Equivalents

951,242 1,002,653

Restricted Cash

128,333 133,355

Net Investment in Leases

1,029,518 1,025,763

Installment Loans

3,670,784 3,679,541

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

March 31, 2021

¥63,272 million

June 30, 2021

¥86,158 million

Allowance for Credit Losses

(78,945 ) (77,904 )

Investment in Operating Leases

1,408,189 1,406,898

Investment in Securities

2,660,443 2,637,297

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

March 31, 2021

¥9,384 million

June 30, 2021

¥9,135 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

June 30, 2021

Amortized Cost

¥2,028,150 million

Allowance for Credit Losses

¥(120) million

Property under Facility Operations

491,855 488,180

Investment in Affiliates

887,764 890,405

Trade Notes, Accounts and Other Receivable

354,334 320,073

Inventories

142,156 136,897

Office Facilities

246,399 247,621

Other Assets

1,671,010 1,691,187

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

March 31, 2021

¥6,297 million

June 30, 2021

¥5,878 million

Total Assets

13,563,082 13,581,966

Liabilities and Equity

Short-term Debt

307,269 456,465

Deposits

2,317,785 2,290,606

Trade Notes, Accounts and Other Payable

260,712 210,398

Policy Liabilities and Policy Account Balances

1,822,422 1,849,661

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

March 31, 2021

¥266,422 million

June 30, 2021

¥244,523 million

Current and Deferred Income Taxes

363,460 392,216

Long-term Debt

4,416,833 4,319,024

Other Liabilities

971,457 948,345

Total Liabilities

10,459,938 10,466,715

Commitments and Contingent Liabilities

Common Stock

221,111 221,111

Additional Paid-in Capital

259,361 259,585

Retained Earnings

2,744,588 2,757,581

Accumulated Other Comprehensive Income (Loss)

(84,650 ) (68,573 )

Treasury Stock, at Cost

(111,954 ) (122,172 )

Total ORIX Corporation Shareholders' Equity

3,028,456 3,047,532

Noncontrolling Interests

74,688 67,719

Total Equity

3,103,144 3,115,251

Total Liabilities and Equity

13,563,082 13,581,966

- 10 -

Table of Contents
Note :

Breakdowns of Accumulated Other Comprehensive Income (Loss)

As of March 31,
2021
As of June 30,
2021

Accumulated Other Comprehensive Income (Loss)

Net unrealized gains on investment in securities

(16,208 ) (9,827 )

Debt valuation adjustments

558 534

Defined benefit pension plans

(21,073 ) (21,119 )

Foreign currency translation adjustments

(36,456 ) (27,553 )

Net unrealized losses on derivative instruments

(11,471 ) (10,608 )

Total

(84,650 ) (68,573 )

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Table of Contents

(2) Condensed Consolidated Statements of Income (Unaudited)

(millions of yen)

Three months
ended
June 30, 2020
Three months
ended
June 30, 2021
Revenues :

Finance revenues

65,431 68,302

Gains on investment securities and dividends

2,369 24,129

Operating leases

94,946 113,466

Life insurance premiums and related investment income

116,123 108,098

Sales of goods and real estate

108,365 119,104

Services income

150,407 175,714

Total Revenues

537,641 608,813
Expenses :

Interest expense

22,681 16,919

Costs of operating leases

71,592 79,754

Life insurance costs

85,645 79,763

Costs of goods and real estate sold

92,869 99,068

Services expense

97,599 105,896

Other (income) and expense

5,105 3,511

Selling, general and administrative expenses

108,367 122,085

Provision for credit losses

6,405 (255 )

Write-downs of long-lived assets

257 87

Write-downs of securities

1,605 6

Total Expenses

492,125 506,834

Operating Income

45,516 101,979

Equity in Net Income (Loss) of Affiliates

12,430 (4,920 )

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

5,320 2,997

Bargain Purchase Gain

4,365 0

Income before Income Taxes

67,631 100,056

Provision for Income Taxes

17,176 29,456

Net Income

50,455 70,600

Net Income Attributable to the Noncontrolling Interests

430 5,384

Net Income (Loss) Attributable to the Redeemable Noncontrolling Interests

(23 ) 0

Net Income Attributable to ORIX Corporation Shareholders

50,048 65,216
Note :

Provision for credit losses of loans to affiliates are recorded in equity in net income (loss) of affiliates since the second quarter of fiscal 2021.

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Table of Contents

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

(millions of yen)
Three months
ended
June 30, 2020
Three months
ended
June 30, 2021

Net Income :

50,455 70,600

Other comprehensive income (loss), net of tax:

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

(1,406 ) 6,381

Net change of debt valuation adjustments

(432 ) (24 )

Net change of defined benefit pension plans

97 (47 )

Net change of foreign currency translation adjustments

(1,273 ) 9,041

Net change of unrealized gains (losses) on derivative instruments

(1,385 ) 892

Total other comprehensive income (loss)

(4,399 ) 16,243

Comprehensive Income

46,056 86,843

Comprehensive Income Attributable to the Noncontrolling Interests

307 5,550

Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests

(127 ) 0

Comprehensive Income Attributable to ORIX Corporation Shareholders

45,876 81,293

(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 three months ended June 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)
Three Months ended
June 30, 2020
Three Months ended
June 30, 2021
March 31,
2021
June 30,
2021
Segment
Revenues
Segment
Profits
Segment
Revenues
Segment
Profits
Segment
Assets
Segment
Assets

Corporate Financial Services and Maintenance Leasing

102,072 13,292 109,792 20,279 1,676,063 1,635,925

Real Estate

78,649 1,850 96,762 11,013 872,095 864,348

PE Investment and Concession

89,773 4,601 99,624 268 378,698 382,004

Environment and Energy

33,956 7,721 29,329 4,489 489,174 490,892

Insurance

117,072 18,255 109,181 15,489 1,959,521 1,951,533

Banking and Credit

20,664 11,903 22,826 12,759 2,690,627 2,702,780

Aircraft and Ships

7,547 7,584 8,463 (4,831 ) 601,762 593,642

ORIX USA

24,769 (585 ) 47,694 25,163 1,220,081 1,210,777

ORIX Europe

36,165 7,189 50,456 13,472 369,546 368,030

Asia and Australia

28,327 6,857 34,648 8,780 1,084,222 1,111,153

Segment Total

538,994 78,667 608,775 106,881 11,341,789 11,311,084

Difference between Segment Total and Consolidated Amounts

(1,353 ) (11,036 ) 38 (6,825 ) 2,221,293 2,270,882

Consolidated Amounts

537,641 67,631 608,813 100,056 13,563,082 13,581,966
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 data for the three months ended June 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.

- 15 -

Disclaimer

ORIX Corporation published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 11:02:10 UTC.


© Publicnow 2021
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