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Monica Dayna Allison
6 years ago
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Announcement Regarding ORIX's Strategic Acquisition of Robeco Group ORIX Corporation

Further accelerate Finance + Services Accelerate Growth and Further expansion of global l business foundation Expansion Significant contribution to Net Income, ROE and ROA Strategic Alliance with

6 Overview Strategic t Acquisition,935mm for approx. 90.0% equity stake in Robeco Asset management company with a strong brand and proven track record of attractive returns Robeco continues to demonstrate high profitability and robust global AUM growth Further accelerate Finance + Services Accelerate Growth and Further expansion of global l business foundation Expansion Significant contribution to Net Income, ROE and ROA Strategic Alliance with Rabobank Rabobank owns ORIX s stock of 50mm Rabobank retains 9.99% equity stake in Robeco Robeco keeps existing collaborative relationships with Rabobank Sale and Purchase Agreement, it is agreed that additional consideration will be paid in cash in accordance with performance of Robeco s subsidiaries during each of the fiscal years from FY203 (after the transaction is completed) to FY Copyright 203 ORIX Corporation All rights reserved. 3

7 Robust AUM Growth and Strong Business Foundation With more than 80-year history, Robeco boasts both a strong brand and a robust customer base Consistently strong net flow momentum and recent flow pattern particularly strong Comes near Japanese # asset manager in AUM size Institutional AUM Retail AUM AUM ( bn) ¹ Net Flows bn (3) 8 8 % AUM BoP % 3% 4% % % 4% 0% % 7% (3)% 5% 2% Figures in chart include Robeco Direct. 83bn of AUM for Robeco Group as of the end of 202 excludes Robeco Direct savings account assets. 6 Copyright 203 ORIX Corporation All rights reserved. 5

Well-Diversified Business Portfolio Well-diversified asset class, investment style, customer base, and region Robeco Group 83bn AUM Rotterdam Robeco

Rotterdam International institutional asset manager with a diverse capability offering By Client Domicile US mutual fund family employing a manager

Emerging Markets 3% Europe 3% United States 4% Pacific % Netherlands 42% Alternatives 6% Blended 2% Fixed Income & Money Market 27% Equity 55%

8 Well-Diversified Business Portfolio Well-diversified asset class, investment style, customer base, and region Robeco Group 83bn AUM Rotterdam Robeco Europe & ROW 05bn AUM Rotterdam Harbor Capital Advisors (HCA) 55bn AUM Chicago Robeco Investment Management (RIM) 7bn AUM Boston Transtrend 6bn AUM Rotterdam International institutional asset manager with a diverse capability offering By Client Domicile US mutual fund family employing a manager selection model Best-in-class value equity manager Assets under Management 2 By Asset Class Globally top 5 systematic trading focused CTA manager Emerging Markets 3% Europe 3% United States 4% Pacific % Netherlands 42% Alternatives 6% Blended 2% Fixed Income & Money Market 27% Equity 55% Excluding Robeco Direct 2 RobecoTotal basis (including Robeco Direct). Asset figures as of December 3, Copyright 203 ORIX Corporation All rights reserved. 6

9 Excellent Management team and High Profitability Robeco demonstrates high profitability 400 EBITDA Net Income ROE ROA 6% EBITDA / Net Inco ome ( mm m) % 3 2% 0% 8% % 4% RO OE / ROA (%) 0 5 FY /2 FY /2 FY20 20/2 FY /2 2% 0% ¹ EBITDA, Net income, ROE and ROA are excluding Robeco Direct. Including estimates. 8 Copyright 203 ORIX Corporation All rights reserved. 7

10 Strategic Objectives Acquisition of world s leading AM Company 2 Acceleration of Finance + Services 3 Further Expansion of Global Business Foundation 4 Positive Financial Impact to ORIX 5 Strategic Alliance with Rabobank 9 Copyright 203 ORIX Corporation All rights reserved. 8

11 Acceleration of Finance + Services Expect solid growth in service related revenues with acquisition of Robeco ( bn) Interest related revenues Service related revenues Automobiles Maintenance services Vehicle management Ships/Aircraft Asset management Ship/Aircraft investment /3 20/3 202/3 203/3 forecast * Base Revenues = Base profit before deduction of SGA Future - Interest related revenues: Includes direct finance leases, interest on loans and investment securities, equity in net income (loss) of affiliates, etc. - Service related revenues: Includes operating leases, life insurance premiums and related investment income, other operating revenues, etc. (corresponding expenses have been deducted) - Interest expense is divided according to the proportion of interest related assets and service related assets and deducted from both revenues Real Estate Related Facilities operation Asset management Environment/Energy Waste disposal and recycling Solar power business 0 Copyright 203 ORIX Corporation All rights reserved. 9

ORIX has a solid network across Asia, Middle East and Japan Accelerate global

12 Further Expansion of Global Business Foundation Robeco is primarily active in Europe and the U.S. ORIX has a solid network across Asia, Middle East and Japan Accelerate global business expansion Europe Americas ORIX Office Robeco Office Asia Middle east Japan p Copyright 203 ORIX Corporation All rights reserved. 0

13 Positive Financial Impact to ORIX Strategic Acquisition and Partnership results in positive impact to ROA, ROE and EPS 300 Net Income ROE % 7.7% Net Inco ome ( bn) % 5.% % /3 20/3 202/3 203/3 Target 0 Future 2 Copyright 203 ORIX Corporation All rights reserved.

14 Strategic Alliance with Rabobank Capital alliance with Rabobank Rabobank owns ORIX s stock of 50mm Rabobank to retain approx. 9.99% 99% equity stake in Robeco Robeco and Rabobank maintain collaborative relationship 3 Copyright 203 ORIX Corporation All rights reserved. 2

16 Strategic Alliance with Rabobank Capital alliance with Rabobank Rabobank owns ORIX s stock of 50mm Rabobank to retain approx. 9.99% 99% equity stake in Robeco Robeco and Rabobank maintain collaborative relationship 5 Copyright 203 ORIX Corporation All rights reserved. 2

18 About Robeco Group With more than 80-year history, Robeco boasts both a strong brand and a robust customer base Consistently strong net flow momentum - positive net flows in of last 2 years and recent flow pattern particularly strong in 20 and 202 Robeco has produced attractive investment performance for its clients Institutional AUM Retail AUM Summary Institutional and Retail Investment Performance 2 Generic Products (3-year) AUM ( Bn) Outperform 64% Specialty Products (3-year) ¹ Net Flows Bn (3) 8 8 % AUM BoP % 3% 4% % % 4% 0% % 7% (3)% 5% 2% Outperform 65% Figures in chart include Robeco Direct. 83bn of AUM for Robeco Group as of the end of 202 excludes Robeco Direct savings account assets. 2 The charts showing % of Robeco Group products that outperform o their benchmarks. Generally e products without a benchmark or tracking ge error are cass classified as specialty products and other products are classified as generic. Specialty products relative performance measured to reference index. Based on 50 generic products and 65 specialty products as of 3 December 202. Excludes products with AUM below $50mm. 7 Copyright 203 ORIX Corporation All rights reserved. 5

19 About Robeco Group snapshot Established in 929 Traditional asset classes (equity, fixed income, money markets) Alternatives (private equity, managed futures) Pension solutions Core investment capabilities complemented by a ring of investment boutiques Global leader in responsible investing 507,507 employees in 5 countries ti across Europe, the US and dasia 8 Copyright 203 ORIX Corporation All rights reserved. 6

20 About Robeco Group results 202 Record AuM: EUR 89bn (20: EUR 50bn) Record net new inflows: EUR 8.4bn (20: EUR 7.5Bn) Net profit: EUR 97 million (20: EUR 34 million) 65% of Robeco products outperformed their benchmark Including Robeco Direct. 9 Copyright 203 ORIX Corporation All rights reserved. 7

21 What are the next steps? Informing clients and employees about the change of ownership and confirming ORIX s support for Robeco s long term commitment to serving clients Set up a joint working group to develop a plan for the transfer and the future operating model of the Dutch banking activities Robeco will continue to operate in an autonomous way and brands will be maintained Further realize ORIX s support for Robeco s growth and explore opportunities for enhancing strategy execution 20 Copyright 203 ORIX Corporation All rights reserved. 8

Opportunities Financially strong parent with global network, strong and balanced funding structure and diversified business portfolio ORIX is strongly committed to support the execution of Robeco

22 Opportunities Financially strong parent with global network, strong and balanced funding structure and diversified business portfolio ORIX is strongly committed to support the execution of Robeco strategy and exploring opportunities that fit well with the Robeco strategy Growth opportunities exist in the pension and asset management market in Asia and Middle East where ORIX possess an established network Leverage the global network of ORIX More opportunities to take Robeco and its businesses to next level: excellent fit between ORIX and Robeco 2 Copyright 203 ORIX Corporation All rights reserved. 9

DEPARTMENT OF FIRE AND POLICE PENSIONS 360 East Second Street, Suite 400 Los Angeles, CA (213)

DEPARTMENT OF FIRE AND POLICE PENSIONS 360 East Second Street, Suite 400 Los Angeles, CA 90012 (213) 978-4545 REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MAY 2, 2013 ITEM: A.2 FROM: SUBJECT: