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    8591   JP3200450009

ORIX CORPORATION

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Presentation Materials[2.2MB]

11/04/2021 | 01:22am EST

ORIX Corporation

Second Quarter Consolidated Financial Results

For The Six-Month Period Ended September 30, 2021

Makoto Inoue

Member of the Board of Directors

Representative Executive Officer

President & CEO

November 4, 2021

(TSE: 8591; NYSE: IX)

Earnings Overview H1 Net Income & ROE

  • 146.7 JPY Bn in net income (+56.3% YoY, 58.7% of FY22.3 forecast of 250.0 JPY Bn); annualized ROE of 9.5%
  • Best quarterly net income since start of pandemic (up 24.9% QoQ)

(JPY Bn)

Net income* and ROE

400.0

12.1%

11.6%

10.3%

15.0%

6.4%

10

FY22.3 Forecast

250.0

5.

0.

-5.

323.7

-10

313.1

302.7

-15

ROE 9.5%

192.4

(Annualized)

146.7

-20

-25

-30

18.3

19.3

20.3

21.3

22.3

Net Income

ROEannualized

100

90

80

70

60

50

40

30

20

10

0

Quarterly Net Income and ROE Trends

(JPY Bn)

12.3% 11.4%

15

10.6%

9.6%

8.6%

7.8%

6.8%

5.9%

6.5%

6.8%

5

89.9

85.2

81.5

0

69.2

58.4

65.2

50.0

43.8

48.2

50.4

-

-

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

20.3

21.3

22.3

Net Income

ROE (annualized)

*Net Income refers to Net Income Attributable to ORIX Corporation Shareholders

Copyright © 2021 ORIX Corporation All rights reserved.

2

Earnings Overview H1 Segment Profit Breakdown

FY22.3 H1

173.5 JPY Bn, up by 45.6% YoY (+54.3 JPY Bn)

Base Profits

Five segments recorded major profit gains YoY: Corporate Financial Services & Maintenance Leasing,

Segment profits

Real Estate, ORIX USA, ORIX Europe and Asia/Australia

240.1 JPY Bn

66.6 JPY Bn, up by 77.3% YoY (+29.1 JPY Bn)

up by 53.2% YoY

Investment

US private equity investment exit, sale of logistics facilities, gains on IPO via stake in Corporate

(+83.4 JPY Bn)

Gains*

Financial Services business partner all contributed to the sharp upturn

(JPY Bn)

Full-Fiscal Year, H1 Segment Profits

500.0 470.1 433.7 451.4

400.0 143.1 107.2 140.1 332.3

300.0

87.4

240.1

200.0

156.8

66.6

327.0

326.5

311.3

37.6

100.0

244.9

173.5

119.2

0.0

18.3

19.3

20.3

21.3

21.3 H1

22.3 H1

Base profits

Investment gains

(JPY Bn)

Quarterly Segment Profits

133.3

106.9

85.7

89.9

36.9

78.7

78.1

29.7

16.0

15.2

34.6

21.6

96.3

62.6

70.4

77.2

56.5

55.3

1Q

2Q 21.33Q

4Q

1Q 22.3 2Q

Base profits

Investment gains

*Primary sources of investment gains: gains on sales of rental property, subsidiaries and affiliates, investment securities, etc. Please see P. 8, P. 51 for breakdown of investment gains

Copyright © 2021 ORIX Corporation All rights reserved.

3

Segment Performance (1) Segment Profits

  • Q2 profit rose QoQ in eight segments
  • Five segments recorded YoY profit increases of Y10 bn or more, totaling Y83.4 bn (+53.2%) in growth

(JPY Bn)

240.1

52.4

156.8

23.9

1.8

9.7

31.1

33.0

11.0

4.3

13.622.1

(JPY Bn)

21.3 H1

21.3 H2

22.3 Q1

22.3 Q2

22.3 H1

QoQ

YoY

Highlight

1

Corporate Financial Services

31.1

39.6

20.3

32.1

52.4

+11.8

+21.3

Profits up sharply on gains via investee IPO, valuation gains on remaining stake.

and Maintenance Leasing

Auto, Rentec also performed well

2

Real Estate

11.0

14.9

11.0

12.8

23.9

+1.8

+12.9

Strong profit growth fueled by investment gains from logistics center sales, upbeat

earnings at Daikyo

3

PE Investment and

4.3

-0.5

0.3

1.6

1.8

+1.3

-2.5

Profits up QoQ on healthy PE contributions, but lower YoY owing to concession

Concession

business losses

4

Environment and Energy

13.6

13.9

4.5

5.2

9.7

+0.7

-3.9

Absence of valuation gains booked in FY21.3 Q1 led to lower profits YoY

5

Insurance

35.3

20.8

15.5

17.5

33.0

+2.0

-2.3

Profits up excluding impact from former Hartford Life

6

Banking and Credit

25.2

24.7

12.8

9.3

22.1

-3.5

-3.1

Finance revenues rose at ORIX Bank, but absence of year-earlier reversals at Credit

led to lower profits

35.3

25.2

0.6

47.6

7

Aircraft and Ships

5.5

-0.2

-4.8

5.4

0.6

+10.3

-4.9

Segment profits up sharply QoQ on Avolon's 2Q return to the black

8

ORIX USA

9.9

30.4

25.2

22.5

47.6

-2.7

+37.7

Robust profit growth YoY fueled by strong contribution from PE, other businesses

9

ORIX Europe

17.1

22.3

13.5

15.1

28.6

+1.6

+11.5

AUM reached new record high

5.5

28.6

9.9

17.120.5

3.8

21.3 H1

22.3 H1

10 Asia and Australia

3.8

9.3

8.8

11.7

20.5

+2.9

+16.7

Strong profit growth fueled by leasing business expansion in South Korea, China

Total

156.8

175.5

106.9

133.3

240.1

+26.4

+83.4

-

Copyright © 2021 ORIX Corporation All rights reserved.

4

Segment Performance (2) Segment Assets

  • Assets increased on continued new investment (Elawan M&A closed in Environment and Energy segment)
  • Annualized segment asset ROA recovered to 2.6%, up 0.9 ppt vs. end-FY21.3

(JPY Bn)

11,341.8 11,601.5

(JPY Bn)

22.3 H1

YTD

ROA*

Highlight

1,676.1

1,659.6

1

Corporate Financial Services

1,659.6

-16.4

4.3%

Strategically reduced lending balance

and Maintenance Leasing

872.1

878.1

2

Real Estate

878.1

+6.0

3.7%

Assets flat on continuing new development, sales of logistics facilities,

other properties

378.7

368.8

489.2 695.4

1,959.5 1,963.0

2,690.6 2,710.0

601.8 615.6

1,220.1 1,188.4

369.5 397.1

1,084.2 1,125.4

21.3 22.3 H1

3

PE Investment and Concession

368.8

-9.9

-0.4%

Assets down slightly owing to losses in concession business

4

Environment and Energy

+206.3

2.2%

Elawan acquisition fueled sharp increase in assets

695.4

5

Insurance

+3.4

2.4%

Assets mostly flat vs end-FY21.3

1,963.0

6

Banking and Credit

+19.4

1.1%

Bank assets rose on new renewable energy financing, and others

2,710.0

7

Aircraft and Ships

615.6

+13.9

-0.1%

Aircraft leasing assets fell owing to sale and depreciation, but assets rose

in shipping

8

ORIX USA

-31.6

6.3%

Assets fell due to careful deal selection

1,188.4

9

ORIX Europe

+27.5

11.2%

Investment in securities rose

397.1

10

Asia and Australia

+41.2

2.8%

Growth in new leasing business in South Korea, China

1,125.4

Total

+259.7

2.6%

-

11,601.5

*Segment asset ROA is calculated using total post-tax unit profits

Copyright © 2021 ORIX Corporation All rights reserved.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

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 06:21:04 UTC.


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Number of Analysts 13
Last Close Price 2 335,00 JPY
Average target price 2 565,38 JPY
Spread / Average Target 9,87%
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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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