ORIX Corporation
Consolidated Financial Results
For the Consolidated Fiscal Year Ended March 31, 2021
Makoto Inoue | Member of the Board of Directors |
Representative Executive Officer | |
President & CEO |
May 13, 2021
(TSE: 8591; NYSE: IX)
Overview Net Income / ROE
- 192.4 JPY Bn in net income (down 36% YoY). ROE at 6.4%
- Net income bottomed at 43.8 JPY Bn in Q2, improving to 48.2 JPY Bn in Q3 and 50.4 JPY Bn in Q4
Net income* and ROE | Quarterly Net Income Trends |
(JPY Bn) | (JPY Bn) |
400.0 | 11.3% | 12.1% | 11.6% | 10.3% | |||||||||||||||
350.0 | 6.4% | 10.0% | |||||||||||||||||
300.0 | |||||||||||||||||||
250.0 | |||||||||||||||||||
200.0 | |||||||||||||||||||
313.1 | 323.7 | -10.0% | |||||||||||||||||
150.0 | 273.2 | 302.7 | |||||||||||||||||
100.0 | 192.4 | ||||||||||||||||||
50.0 | |||||||||||||||||||
0.0 | -30.0% | ||||||||||||||||||
17.3 | 18.3 | 19.3 | 20.3 | 21.3 | |||||||||||||||
Net Income | ROE | ||||||||||||||||||
*Net Income refers to Net Income Attributable to ORIX Corporation Shareholders
100
90
80
70
60 | |||||||||||||||||||||
50 | |||||||||||||||||||||
89.9 | 85.2 | ||||||||||||||||||||
40 | |||||||||||||||||||||
69.2 | 58.4 | ||||||||||||||||||||
30 | |||||||||||||||||||||
50.0 | 43.8 | 48.2 | 50.4 | ||||||||||||||||||
20 | |||||||||||||||||||||
10 | |||||||||||||||||||||
0 | |||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||
20.3 | Net Income | 21.3 | |||||||||||||||||||
Copyright © 2021 ORIX Corporation All rights reserved. | 2 |
Overview Breakdown of FY21.3 Segment Profits
FY 21.3 | Base Profits | 229.6 JPY Bn, down by -23.5% YoY (-70.7 JPY Bn) |
Segment profits | Base profits increased +7.6 JPY Bn YoY, excluding *three businesses most impacted by COVID-19(-78.3 JPY Bn) | |
318.9 JPY Bn | |||
Investment | 89.3 JPY Bn, down by -37.5% YoY (-53.6 JPY Bn) | ||
down by 28% YoY | |||
(-124.4 JPY Bn) | Gains** | Investment gains down YoY, but secured a certain level in Real Estate, US, Asia and other areas despite COVID-19 | |
Segment Profits
(JPY Bn)
450.0 | 441.4 | 453.2 | 424.9 | 443.3 | ||
400.0 | 143.2 | |||||
350.0 | 163.4 | 107.8 | 142.9 | |||
318.9 | ||||||
300.0 | 89.3 | |||||
250.0 | ||||||
200.0 | ||||||
150.0 | 278.0 | 310.1 | 317.1 | 300.3 | ||
229.6 | ||||||
100.0 | ||||||
50.0 | ||||||
0.0 | ||||||
17.3 | 18.3 | 19.3 | 20.3 | 21.3 | ||
Base profits | Investment gains | |||||
Breakdown of Base Profits
(COVID-19 impact)
Businesses with minor COVID-19 impact | *Three businesses with major COVID-19 impact |
(Aircraft leasing, Concession, | |
(Excl. three businesses at right ) | |
Real Estate ) | |
YoY +7.6 JPY Bn
240.3 247.9
YoY -78.3 JPY Bn
60.1
-18.2 | |||
20.3 | 21.3 | 20.3 | 21.3 |
**Primary sources of investment gains: gains on sales of rental property, subsidiaries and affiliates, investment securities, etc. Please see P44 for breakdown of Investment Gains
Copyright © 2021 ORIX Corporation All rights reserved. | 3 |
Overview Impact of COVID-19
- Caution still warranted, but total negative COVID-19 impact has shrunk steadily since Q2
(Figures are based on segment profits)
Business | Highlight | Impact | Impact | Impact | Impact | ||
amount (Q1) | amount (Q2) | amount (Q3) | amount (Q4) | ||||
① Real Estate | Hotels and inns recovered in Q2 and Q3, but occupancy | ||||||
rates declined again in Q4 due to second state of | -6 JPY Bn | -3 JPY Bn | -2 JPY Bn | -5 JPY Bn | |||
(Facilities Operation) | |||||||
emergency | |||||||
② Aircraft Leasing | With increased vaccination, domestic air traffic is | -5 JPY Bn | -12 JPY Bn | -8 JPY Bn | -8 JPY Bn | ||
recovering in some markets, but caution still warranted | |||||||
③ Concession | Losses narrowed in Q4 due to recovery in domestic flights | ||||||
(Oct-Dec results booked with 3-month lag), but outlook for | -4 JPY Bn | -9 JPY Bn | -8 JPY Bn | -6 JPY Bn | |||
inbound tourism remains challenged | |||||||
④ Corporate Financial Services | Corporate Financial Services, Auto, Rentec started | -5 JPY Bn | -2 JPY Bn | -0 | -0 | ||
and Maintenance Leasing | improving from Q1 | ||||||
⑤ ORIX USA | Provisions for credit losses (mainly for energy-related | ||||||
assets) were booked in Q1 but decreased since Q2. No | -9 JPY Bn | -1 JPY Bn | -0 | -0 | |||
COVID-19 impact in Q3 and Q4 | |||||||
⑥ Other (Life Insurance, etc.) | Reversal of liability reserve of ex-Hartford Life Insurance | +5 JPY Bn | - | - | - | ||
was a positive for Q1, but no big change from Q2 | |||||||
Total | Appx. | Appx. | Appx. | Appx. | |||
-24 JPY Bn | -27 JPY Bn | -18 JPY Bn | -19 JPY Bn | ||||
Copyright © 2021 ORIX Corporation All rights reserved. | 4 |
Segment Performance (1) Segment Profits
- Most segments posted ongoing profit recovery since Q2
(H2 segment profits up 13% vs. H1, Q4 profits in six segments up QoQ)
443.3 (JPY Bn)
63.0
80.2318.9
(JPY Bn)
Q1 | Q2 | Q3 | Q4 | 21.3 | QoQ | YoY | Highlight | ||
1 | Corporate Financial Services | 10.2 | 14.7 | 16.2 | 18.0 | 59.1 | 1.7 | -3.8 | Profits increased sequentially from Q1 to Q4 |
and Maintenance Leasing | |||||||||
2 | Real Estate | 1.5 | 8.8 | 5.2 | 9.1 | 24.7 | 3.8 | -55.5 | Profits fell YoY due to fewer large investment gains, lower occupancy rate at hotels |
& inns | |||||||||
3 | PE Investment and | 4.5 | -0.4 | 0.2 | -0.8 | 3.4 | -1.0 | -40.7 | Concession profits fell YoY mainly on fewer international passengers |
Concession | PE investment remained solid |
44.1
59.1
4 Environment and Energy | 8.1 | 6.0 | 3.7 | 10.8 | 28.6 | 7.1 | 16.9 | Profits increased significantly, valuation gains and gains on sales of some |
businesses recorded | ||||||||
11.624.7
44.8 | 3.4 |
28.6 | |
39.155.1
45.3
48.0
- 3.8 43.6
- 37.9
- 14.7
20.321.3
5 | Insurance | 18.0 | 16.8 | 15.9 | 4.5 | 55.1 | -11.5 | 10.3 | Non-face-to-face sales channels made positive contributions due to COVID-19. |
Profits increased YoY while Q4 profits lower due to forex impact | |||||||||
6 | Banking and Credit | 11.5 | 12.8 | 12.7 | 11.1 | 48.0 | -1.6 | 8.9 | Both Banking and Credit profits held steady. Profits increased YoY |
7 | Aircraft and Ships | 7.3 | -2.6 | -1.6 | 0.6 | 3.8 | 2.2 | -41.5 | Segment impacted by decline in lease revenue & investment gains, lower profit |
contributions from Avolon | |||||||||
8 | ORIX USA | 0.2 | 11.2 | 16.1 | 16.1 | 43.6 | -0.1 | -13.1 | Profits recovered significantly from Q2 due to reduction of provisions for credit |
costs and improvement in valuation gain from funds | |||||||||
9 | ORIX Europe | 6.7 | 9.6 | 9.6 | 12.0 | 37.9 | 2.3 | -5.9 | AUM recovered strongly. Profits increased YoY excluding the gain on sale of |
RobecoSAM's rating division | |||||||||
10 | Asia and Australia | 7.4 | -2.8 | 3.7 | 6.3 | 14.7 | 2.5 | 0.0 | PE investment recorded impairments, but subsidiaries remained stable |
Total | 75.4 | 74.1 | 81.9 | 87.5 | 318.9 | 5.6 | -124.4 | ー | |
Copyright © 2021 ORIX Corporation All rights reserved. | 5 |
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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 06:13:09 UTC.