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)

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

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

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

Corporate Financial Services

Corporate Financial Services, Auto, Rentec started

-5 JPY Bn

-2 JPY Bn

-0

-0

and Maintenance Leasing

improving from Q1

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

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

  1. 3.8 43.6
  2. 37.9
  1. 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

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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.