Consolidated Financial Results
April 1, 2020 -March 31, 2021
May 13, 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
ORIX Corporation
World Trade Center Building, 2-4-1Hamamatsu-cho,Minato-ku, Tokyo 105-6135
JAPAN
Tel: +81-3-3435-3121 Fax: +81-3-3435-3154
E-mail: orix_corpcomm@orix.jp
Basic | Diluted | Return on | Return on | Operating | |||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share | Equity | Assets *2 | Margin | |||||||||||||||||||||||||||||||
March 31, 2021 | 155.54 | 155.39 | 6.4% | 2.2% | 11.3% | ||||||||||||||||||||||||||||||
March 31, 2020 | 237.38 | 237.17 | 10.3% | 3.3% | 11.8% | ||||||||||||||||||||||||||||||
"Equity in Net Income of Affiliates" was a net gain of ¥481 million for the fiscal year ended March 31, 2021 and a net gain of ¥67,924 million for the fiscal year ended March 31, 2020. | |||||||||||||||||||||||||||||||||||
*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. | ||||||||||||||||||||||||||||||||||
*Note 2: | "Return on Assets" is calculated based on "Income before Income Taxes." | ||||||||||||||||||||||||||||||||||
(2) Performance Highlights - Financial Position (Unaudited) | |||||||||||||||||||||||||||||||||||
Total | Total | Shareholders' | Shareholders' | Shareholders' | |||||||||||||||||||||||||||||||
Assets | Equity | Equity | Equity Ratio | Equity Per Share | |||||||||||||||||||||||||||||||
March 31, 2021 | 13,563,082 | 3,103,144 | 3,028,456 | 22.3% | 2,487.77 | ||||||||||||||||||||||||||||||
March 31, 2020 | 13,067,528 | 3,065,835 | 2,993,608 | 22.9% | 2,386.35 | ||||||||||||||||||||||||||||||
*Note 3: | "Shareholders' Equity" refers to "Total ORIX Corporation Shareholders' Equity." | ||||||||||||||||||||||||||||||||||
"Shareholders' Equity Ratio" is the ratio of "Total ORIX Corporation Shareholders' Equity" to "Total Assets." | |||||||||||||||||||||||||||||||||||
"Shareholders' Equity Per Share" is calculated based on "Total ORIX Corporation Shareholders' Equity." | |||||||||||||||||||||||||||||||||||
(3) Performance Highlights - Cash Flows (Unaudited) | |||||||||||||||||||||||||||||||||||
Cash Flows | Cash Flows | Cash Flows | Cash, Cash Equivalents and | ||||||||||||||||||||||||||||||||
Restricted Cash | |||||||||||||||||||||||||||||||||||
from Operating Activities | from Investing Activities | from Financing Activities | |||||||||||||||||||||||||||||||||
at End of Year | |||||||||||||||||||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||||||||||||||
1,095,676 | (1,203,252) | 39,884 | 1,079,575 | ||||||||||||||||||||||||||||||||
March 31, 2020 | 1,042,466 | (1,470,486) | 288,703 | 1,135,284 | |||||||||||||||||||||||||||||||
2. Dividends (Unaudited) | |||||||||||||||||||||||||||||||||||
First | Second | Third | Total | Dividend Payout | Dividends on Equity | ||||||||||||||||||||||||||||||
Year-end | Total | Ratio | |||||||||||||||||||||||||||||||||
Quarter-end | Quarter-end | Quarter-end | Dividends Paid | (Consolidated base) | |||||||||||||||||||||||||||||||
(Consolidated base) | |||||||||||||||||||||||||||||||||||
March 31, 2020 | - | 35.00 | - | 41.00 | 76.00 | 96,356 | 32.0% | 3.3% | |||||||||||||||||||||||||||
March 31, 2021 | - | 35.00 | - | 43.00 | 78.00 | 96,108 | 50.1% | 3.2% | |||||||||||||||||||||||||||
March 31, 2022 (Est.) | - | 39.00 | - | 39.00 | 78.00 | - | - | - |
*Note 4: Total dividends paid include dividends paid to the Board Incentive Plan Trust (¥123 million for the fiscal year ended March 31, 2020 and ¥169 million for the fiscal year ended March 31, 2021).
3. Forecast for the Year Ending March 31, 2022 (Unaudited)
Net Income
Attributable to
ORIX Corporation Shareholders
March 31, 2022250,00029.9%
*Note 5: 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. For cautionary notes regarding assumptions for forward- looking statements, please refer to 1.Summary of Consolidated Financial Results (1) Summary of Financial Highlights "Outlook and Forecast".
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.
- 1 -
4. Other Information | |||||||||||
(1) | Changes in Significant Consolidated Subsidiaries | Yes | ( | ) | No | ( | x | ) | |||
Addition - None ( | ) | Exclusion - None ( | ) | ||||||||
(2) | 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 6: For details, please refer to "3. Financial Information (9) Changes in Significant Basis of Preparation of Consolidated Financial Statements" on page 21.
- Number of Issued Shares (Ordinary Shares)
- The number of issued shares, including treasury stock, was 1,285,724,480 as of March 31, 2021, and 1,324,629,128 as of March 31, 2020.
- The number of treasury stock was 66,231,916 as of March 31, 2021, and 68,680,644 as of March 31, 2020.
-
The average number of outstanding shares was 1,236,897,189 for the fiscal year ended March 31, 2021, and 1,275,165,730 for the fiscal year ended March 31, 2020.
The Company's shares held through the Board Incentive Plan Trust (2,154,248 shares as of March 31, 2021 and 1,476,828 shares as of March 31, 2020) 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.
- 2 -
1. Summary of Consolidated Financial Results
(1) Summary of Financial Highlights
Financial Results for the Fiscal Year Ended March 31, 2021
Fiscal Year ended | Fiscal Year ended | Change | |||||
March 31, 2020 | March 31, 2021 | Amount | Percent | ||||
Total Revenues | (millions of yen) | 2,280,329 | 2,292,708 | 12,379 | 1 % | ||
Total Expenses | (millions of yen) | 2,010,648 | 2,033,894 | 23,246 | 1 % | ||
Income before Income Taxes | (millions of yen) | 412,561 | 287,561 | (125,000) | (30)% | ||
Net Income Attributable to | (millions of yen) | 302,700 | 192,384 | (110,316) | (36)% | ||
ORIX Corporation Shareholders | |||||||
Earnings Per Share (Basic) | (yen) | 237.38 | 155.54 | (81.84) | (34)% | ||
(Diluted) | (yen) | 237.17 | 155.39 | (81.78) | (34)% | ||
ROE *1 | (%) | 10.3 | 6.4 | (3.9) | - | ||
ROA *2 | (%) | 2.40 | 1.44 | (0.96) | - | ||
*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, 2020 to March 31, 2021)
Total revenues for the consolidated fiscal year ended March 31, 2021 (hereinafter, "the fiscal year") increased 1% to ¥2,292,708 million compared to the previous fiscal year due to increases in life insurance premiums and related investment income, and gains on investment securities and dividends despite decreases in services income, and operating leases revenues.
Total expenses increased 1% to ¥2,033,894 million compared to the previous fiscal year due to an increase in life insurance costs despite decreases in interest expense, and services expense.
On the other hand, equity in net income of affiliates for the fiscal year decreased 99% to ¥481 million compared to the previous fiscal year and gains on sales of subsidiaries and affiliates and liquidation losses, net for the fiscal year decreased 69% to ¥23,300 million compared to the previous fiscal year.
Due to the above results and the impact of coronavirus disease 2019 (hereinafter, "COVID-19"), income before income taxes for the fiscal year decreased 30% to ¥287,561 million compared to the previous fiscal year and net income attributable to ORIX Corporation shareholders decreased 36% to ¥192,384 million compared to the previous fiscal year.
- 3 -
Segment Information
Total segment profits for the fiscal year decreased 28% to ¥318,891 million compared to the previous fiscal year. Segment profits increased in each of Environment and Energy, Insurance and Banking and Credit while segment profits in each of Corporate Financial Services and Maintenance Leasing, Real Estate, PE Investment and Concession, Aircraft and Ships, ORIX USA, ORIX Europe and Asia and Australia decreased.
Since April 1, 2020, the operating segments regularly reviewed by the chief operating decision maker to make decisions about resource allocations and assess performance have been changed, resulting in a reorganization of our reportable segments. As a result of this change, segment data for the previous fiscal year has been retrospectively restated.
Since April 1, 2020, the selling, general and administrative expenses that should be borne by the ORIX Group, which were initially charged to its respective segments, have been included in the difference between segment total profits and consolidated amounts for the fiscal year. As a result of this change, segment data for the previous fiscal year has been retrospectively restated.
Since April 1, 2020, Accounting Standards Update 2016-13 ("Measurement of Credit Losses on Financial Instruments"-ASC 326 ("Financial Instruments-Credit Losses")) (hereinafter, "Credit Losses Standard") has been adopted. For further information, see "3. Financial Information (9) Changes in Significant Basis of Preparation of Consolidated Financial Statements - Significant Accounting Policies - (Adoption of New Accounting Standards)."
Segment information for the fiscal year is as follows:
Corporate Financial Services and Maintenance Leasing: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and IT-related equipment; Yayoi
Year ended | Year ended | Change | |||
March 31, 2020 | March 31, 2021 | Amount | Percent | ||
(millions of yen) | (millions of yen) | ||||
(millions of yen) | (%) | ||||
Segment Revenues | 428,036 | 429,799 | 1,763 | 0 | |
Segment Profits | 62,978 | 59,149 | (3,829) | (6) | |
Change | |||||
As of March 31, 2020 | As of March 31, 2021 | ||||
Amount | Percent | ||||
(millions of yen) | (millions of yen) | ||||
(millions of yen) | (%) | ||||
Segment Assets | 1,789,693 | 1,658,571 | (131,122) | (7) |
Segment revenues totaled ¥429,799 million, remaining substantially unchanged from the previous fiscal year. This was due to an increase in operating leases revenues from the rental of IT-related equipment, mostly offset by lower finance revenues resulting from decreases in financial assets and lower sales of goods.
Segment profits decreased 6% to ¥59,149 million due to increases in costs of operating leases and services expense, and the absence of bargain purchase gains recorded in relation to companies acquired in our corporate financial services business during the previous fiscal year.
Segment assets decreased 7% to ¥1,658,571 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.
- 4 -
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
ORIX Corporation published this content on 13 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 May 2021 06:21:07 UTC.