Consolidated Financial Results Supplementary Information for the Three-Months Ended June 30, (August 5, 2010)

Transcription

1 Consolidated Financial Results Supplementary Information for the Three-Months Ended June 30, 2010 (August 5, 2010)

2 Contents Key Quarterly Financial Info (1): Balance Sheet Data & New Business Volumes Key Quarterly Financial Info (2): Income Statement Data Key Quarterly Financial Info (3): Key Ratios & Margin & Credit Ratings Funding Information regarding Major Assets (1) Information regarding Major Assets (2) Segment Information : Segment Information & Assets by Segment Segment Details (1) : Corporate Financial Services & Maintenance Leasing Segment Details (2) : Real Estate & Investment Banking Segment Details (3) : Retail & Overseas Business Page This document has been prepared based upon quarterly financial information. For annual and more historical data please access our website. A list of major disclosure materials is given below. ORIX Website: IR Website: IR Library: URL: URL: ORIX Corporation Corporate Planning Office Mita NN Bldg., Shiba, Minato-ku, Tokyo , Japan Tel: Fax: Disclaimer 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 forwardlooking 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 and those described under Business Risk of the securities report (Yukashoken houkokusho ) filed with the Director of the Kanto Local Finance Bureau. The Company believes that it will be considered a passive foreign investment company for United States Federal income tax purpose in the year to which these consolidated financial results relate and for the foreseeable future by reason of the composition of its assets and the nature of its income. A U.S. holder of the shares or ADSs of the Company is therefore 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.

3 Application of new accounting standards about consolidation of Variable Interest Entities Effective April 1, 2010, the Company and its subsidiaries adopted FASB Statement No. 166 ( Accounting for Transfers of Financial Assets an amendment of FASB Statement No.140 ), which was codified by Accounting Standards Update (ASC860 ( Transfers and Servicing )). This Update removes the concept of a qualifying special-purpose entity and removes the exception from applying ASC ( Consolidation-Variable Interest Entities ) to variable interest entities that are qualifying special-purpose entities. This Update also modifies the financial-components approach used in ASC 860 and limits the circumstances in which a transferor derecognizes a portion or component of a financial asset. Effective April 1, 2010, the Company and its subsidiaries adopted FASB Statement No. 167 ( Amendment of FASB Interpretation No.46(R) ), which was codified by Accounting Standards Update (ASC810 ( Consolidation )). This Update removes the exception from applying FIN 46(R) (ASC 810) to variable interest entities that are qualifying special-purpose entities, and requires an enterprise to perform qualitative analysis to identify the primary beneficiary. An enterprise that has both of the following characteristics is considered to be the primary beneficiary who shall consolidate a variable interest entity: The power to direct the activities of a variable interest entity that most significantly impact the entity s economic performance The obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Additionally, this Update requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity. The adoption of these Updates caused increases in total assets mainly consists of direct financing leases, loan, allowance for doubtful receivables on direct financing leases and loan losses, and increases on liabilities, mainly in long term debt, and decreases in equity, chiefly in retained earnings. The effects on the company and its subsidiaries financial conditions at the initial adoption date is an increase of 1,147 billion on total assets, an increase of 1,169 billion on total liabilities and a decrease of 22 billion on retained earnings, net of tax, respectively, in the consolidated balance sheets. From this fiscal year, the Company changed the measure of its segment assets and segment revenues related to certain variable interest entities (VIEs) which are consolidated in accordance with ASC , Consolidations since the Company s management changed its internal performance assessment measures to manage its segments. Among consolidated VIEs, VIEs for securitization in which VIE s assets can be used only to settle related obligations and the creditors do not have recourse to other assets of the Company or its subsidiaries, segment assets are measured based on an amount of the Company and its subsidiaries net investments in VIEs, which are different from the amount of total assets of the consolidated VIEs, and segment revenues are measured at a net amount of the VIEs revenues corresponding to its investments in VIEs. This change does not have any effect on segment profit. Due to the change,the reclassified figures are shown for each previous periods in following segment information.

4 Key Quarterly Financial Information (1) Balance Sheet Data ) Investment in Direct Financing Leases 864, , , , ,153 Japan 663, , , , ,895 Overseas 200, , , , ,258 2) Installment Loans 3,164,129 2,683,518 2,618,561 2,464,251 3,360,338 Japan 2,855,955 2,411,105 2,352,754 2,207,943 2,324,178 Overseas 308, , , ,308 1,036,160 3) Investment in Operating Leases 1,290,257 1,286,127 1,277,316 1,213,223 1,214,284 Japan 1,148,424 1,156,480 1,147,799 1,083,284 1,086,250 Overseas 141, , , , ,034 4) Investment in Securities 910, ,029 1,013,090 1,104,158 1,081,287 Japan 791, , , , ,967 Overseas 118, , , , ,320 5) Other Operating Assets 189, , , , ,859 Japan 185, , , , ,433 Overseas 3,613 4,903 4,416 4,374 16,426 Total Operating Assets 6,418,545 5,918,391 5,887,584 5,724,509 6,715,921 Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses (164,810) (160,384) (157,067) (157,523) (182,179) Allowance/Investment in Direct Financing Leases and Installment Loans 4.1% 4.6% 4.6% 4.9% 4.3% Total Assets 8,139,440 7,918,537 7,958,356 7,739,800 8,704,169 Short-Term Debt, Long-Term Debt and Deposits 5,761,138 5,429,151 5,474,756 5,263,104 6,298,331 Policy Liabilities 428, , , , ,965 Total Liabilities 6,920,704 6,611,637 6,636,873 6,395,244 7,386,486 Redeemable Noncontrolling Interests (RNCI) 25,770 24,408 25,841 28,095 27,916 ORIX Corporation Shareholders Equity 1,175,444 1,265,438 1,276,577 1,298,684 1,266,795 Noncontrolling Interests 17,522 17,054 19,065 17,777 22,972 Total Equity 1,192,966 1,282,492 1,295,642 1,316,461 1,289,767 Total Liabilities, RNCI and Equity 8,139,440 7,918,537 7,958,356 7,739,800 8,704,169 New Business Volumes Direct Financing Leases: New equipment acquisitions 49,629 53,339 60,308 69,353 76,644 Japan 32,636 36,972 40,118 47,286 48,798 Overseas 16,993 16,367 20,190 22,067 27,846 Installment Loans: New loans added 157, , , , ,024 Japan 155, , , , ,566 Overseas 1,949 10,824 16,127 16,834 30,458 Operating Leases: New equipment acquisitions 45,299 59,881 38,735 46,000 51,822 Japan 39,994 53,506 31,208 36,683 41,041 Overseas 5,305 6,375 7,527 9,317 10,781 Investment in Securities: New securities added 61, , , , ,610 Japan 44, , , , ,835 Overseas 17,435 28,791 14,519 8,720 6,775 Other Operating Transactions: New assets added 4,231 6,901 8,010 5,044 8,690 Japan 4,231 6,901 8,010 5,044 8,690 Overseas Yen/Dollar Exchange Rate Average Rate Period End Rate

5 Key Quarterly Financial Information(2) Income Statement Data Revenues 1) Direct financing leases 13,462 12,101 12,214 12,338 12,330 Japan 9,287 8,241 8,629 8,827 8,681 Overseas 4,175 3,860 3,585 3,511 3,649 2) Operating leases* 67,730 69,781 69,108 69,897 68,045 Japan* 53,950 55,653 54,700 56,322 53,825 Overseas 13,780 14,128 14,408 13,575 14,220 3) Interest on loans and investment securities 41,847 31,978 29,142 32,200 44,752 Interest on loans 36,734 27,358 24,145 26,494 40,309 Japan 31,624 22,603 19,628 22,266 21,881 Overseas 5,110 4,755 4,517 4,228 18,428 Interest on investment securities 5,113 4,620 4,997 5,706 4,443 Japan 3,391 3,068 3,361 3,491 2,870 Overseas 1,722 1,552 1,636 2,215 1,573 4) Brokerage commissions and net gains on investment securities 7,480 3,030 1,805 11,002 5,055 Brokerage commissions 1,106 1, Net gains on investment securities 4,615 1, ,622 3,503 Dividends income 1, ,046 1,549 5) Life insurance premiums and related investment income 26,097 31,092 26,776 31,633 27,722 Life insurance premiums 23,896 27,560 23,578 29,099 24,717 Related investment income 2,201 3,532 3,198 2,534 3,005 6) Real estate sales 10,403 10,604 14,606 5,056 5,672 Japan 10,403 10,604 14,606 5,056 5,672 Overseas 7) Gains on sales of real estate under operating leases 488 1, , Japan 488 1, , Overseas 24 8) Other operating revenues 65,536 69,416 73,557 75,408 70,835 Japan 53,221 53,082 52,942 56,879 56,928 Overseas 12,315 16,334 20,615 18,529 13,907 Total Revenues* 233, , , , ,514 Expenses 1) Interest expense* 22,666 20,612 19,712 19,396 33,359 2) Costs of operating leases* 47,370 49,167 47,501 48,177 46,252 3) Life insurance costs 21,779 24,661 20,743 25,165 20,639 4) Costs of real estate sales 10,596 10,098 14,178 11,885 6,175 5) Other operating expenses 39,737 38,207 40,251 44,644 42,776 6) Selling, general and administrative expenses* 53,178 57,472 57,207 54,971 49,453 7) Provision for doubtful receivables and probable loan losses 12,404 27,070 9,339 22,719 5,992 8) Write-downs of long-lived assets ,166 3,513 1,603 9) Write-downs of securities 2,748 3,337 4,194 13,358 6,271 10) Foreign currency transaction loss (gain), net 616 (266) 986 (398) (363) Total Expenses* 211, , , , ,157 Operating Income (Loss)* 21,847 (786) 9,987 (1,365) 22,357 Equity in Net Income (Loss) of Affiliates (9,161) 4,623 4,715 8,373 1,932 Gains (Losses) on Sales of Subsidiaries and Affiliates and Liquidation Losses, Net (707) 7,000 (224) 11, Income before Income Taxes and Discontinued Operations* 11,979 10,837 14,478 18,426 24,635 Provision for Income Taxes* 5,017 4,450 6,036 7,896 10,064 Income from Continuing Operations* 6,962 6,387 8,442 10,530 14,571 Discontinued Operations, Net of Applicable Tax Effect* 225 6, ,296 Net Income 7,187 13,301 9,353 11,096 16,867 Net Income (Loss) Attributable to Noncontrolling Interests (444) (297) 1, (13) Net Income Attributable to Redeemable Noncontrolling Interests Net Income Attributable to ORIX Corporation 7,192 12,958 7,283 10,324 16,450 *Pursuant to ASC "Presentation of Financial Statements - Discontinued Operations", the results of operations which meet the criteria for discontinued operations are reported as a reclassified component of income, and therefore differ from the amounts that had been previously reported in the previous fiscal quarter. These items are indicated by the "*" mark 2

6 Key Quarterly Financial Information(3) Key Ratios, Per Share Data and Employees Return on Equity (ROE)* 2.5% 4.2% 2.3% 3.2% 5.1% Return on Assets (ROA)* 0.35% 0.65% 0.37% 0.53% 0.80% Return on Segment Assets (ROA)* 0.42% 0.78% 0.45% 0.65% 1.05% Shareholders Equity Ratio 14.4% 16.0% 16.0% 16.8% 14.6% Debt-to-Equity Ratio (times) (Short+Long-Term Debt+Deposits)/Shareholders' Equity Debt-to-Equity Ratio (times) (Short+Long-Term Debt)/Shareholders' Equity Debt-to-Equity Ratio (times) (Short+Long-Term Debt)/Shareholders' Equity Shareholders Equity Per Share (yen) 13, , , , , Basic EPS (yen) Diluted EPS (yen) Number of Employees 19,022 18,348 18,354 17,725 18,065 *Annualized Return on Equity (ROE), Shareholders Equity Ratio, Debt-to-Equity Ratio (times) and Shareholders Equity Per Share are calculated using Total ORIX Corporation Shareholders Equity. Debt-to-Equity Ratio (times) includes the results of the application of the Accounting Standards Update (ASC810 ( Consolidation )) and Debt-to-Equity Ratio (times) excludes the results ot the accounting changes. Please see "Application of new accounting standards about consolidation of Variable Interest Entities". Margin Funding costs Japan 1.4% 1.4% 1.3% 1.3% 1.4% Overseas 3.3% 3.2% 3.2% 2.9% 3.3% Yields on Assets Japan 4.6% 3.8% 3.8% 4.4% 4.1% Overseas 7.0% 7.1% 7.2% 7.0% 8.2% Interest Rate Spreads Japan 3.1% 2.4% 2.4% 3.1% 2.7% Overseas 3.7% 3.9% 4.1% 4.1% 4.9% *Reclassification of discontinued operations and the results of the application of the Accounting Standards Update (ASC810 ( Consolidation )) are not reflected on the margins above. Credit Ratings R&I Short-Term Debt (CP) Long-Term Debt JCR Short-Term Debt (CP) Long-Term Debt S&P Long-Term Debt Moody's Long-Term Debt

7 Funding Funding Short-Term Debt Borrowings from Financial Institutions 507, , , , ,744 *Medium-Term Notes 3,500 21,550 19,550 19,550 19,550 *Commercial Paper 306, , , , ,170 Total Short-Term Debt 817, , , , ,464 Long-Term Debt Borrowings from Financial Institutions 2,578,830 2,468,326 2,404,209 2,314,377 2,239,171 *Bonds 1,222,961 1,181,149 1,208,326 1,215,359 1,228,554 *Medium-Term Notes 93,024 99,493 96, ,310 95,895 *Asset-Backed Securities, Commercial Mortgage Backed Securities 340, , , ,224 1,221,514 Total Long-Term Debt 4,234,962 3,980,525 3,932,727 3,836,270 4,785,134 Short-Term Debt+Long-Term Debt 5,052,458 4,684,693 4,667,761 4,409,835 5,400,598 Deposits 708, , , , ,733 Total Debt 5,761,138 5,429,151 5,474,756 5,263,104 6,298,331 **Share of Long-Term Debt ( Including ABS, CMBS) 84% 85% 84% 87% 89% **Share of Long-Term Debt ( Excluding ABS, CMBS) 83% 84% 83% 86% 85% *Note: As used here, direct funding includes items indicated by the "*" mark. **Note: Share of long-term debt refers to long-term debt divided by the total of short- and long-term debt. Direct Funding Direct Funding* 1,966,382 1,850,235 1,863,732 1,824,224 2,844,683 Direct Funding Ratio ( Including ABS, CMBS) 34% 34% 34% 35% 45% Direct Funding Ratio( Excluding ABS, CMBS) 30% 31% 31% 32% 32% Commitment Lines Credit Lines 494, , , , ,723 Available Credit 276, , , , ,782 Securitization (DFLs and Installment Loans) Direct Financing Leases Securitized 5,241 3,041 9,806 9,886 Gains (Losses) on Securitization of Direct Financing Leases (78) (29) Off-Balance Direct Financing Leases 199, , , ,337 22,551 Managed Direct Financing Leases 1,063, , , , ,704 Installment Loans Securitized Gains on Securitization of Installment Loans Off-Balance Installment Loans 124, , , ,317 Managed Installment Loans 3,288,610 2,801,644 2,735,153 2,575,568 3,360,338 Securitization (Securities) Securities Securitized Gains on Securitization of Securities Off-Balance Securities 43,859 32,495 32,037 31,123 Total Off-Balance Assets 367, , , ,777 22,551 4

8 Information regarding Major Assets (1) Investment in Direct Financing Leases Minimum Lease Payments Receivable 951, , , , ,129 Estimated Residual Value 52,898 51,087 49,178 46,460 44,825 Initial Direct Costs 9,004 8,602 8,054 7,848 7,618 Unearned Lease Income (149,209) (144,634) (142,598) (138,280) (144,419) Total 864, , , , ,153 Investment in Direct Financing Leases by Category Information-Related and Office Equipment 92,228 85,925 80,948 74,113 88,031 Industrial Equipment 120, , , , ,733 Commercial Services Equipment 72,837 66,361 61,192 54,481 61,292 Transportation Equipment 349, , , , ,305 Other Equipment 229, , , , ,792 Total 864, , , , ,153 Investment in Operating Leases by Category Transportation Equipment 385, , , , ,768 Measuring and Information-Related Equipment 58,942 55,399 53,299 51,170 50,312 Real Estate 821, , , , ,482 Other 5,169 5,169 4,670 4,305 4,457 Accrued Rental Receivables 19,786 20,164 17,557 17,249 16,265 Total 1,290,257 1,286,127 1,277,316 1,213,223 1,214,284 Installment Loans by Region and Loan Type Consumer Borrowers in Japan: Housing Loans 711, , , , ,585 Card Loans 328,200 Other 57,039 48,423 51,957 13,663 13,582 Subtotal 1,096, , , , ,167 Corporate Borrowers in Japan: Real Estate Companies 616, , , , ,220 Commercial, Industrial and Other Companies 1,014, , , , ,072 Subtotal 1,631,007 1,522,196 1,458,085 1,351,910 1,387,292 Overseas Commercial, Industrial and Other Borrowers 293, , , ,521 1,026,270 Purchased loans 142, , , , ,609 Total 3,164,129 2,683,518 2,618,561 2,464,251 3,360,338 Investment in Securities Trading Securities 8,620 8,879 37,634 49,596 57,199 Available-for-Sale Securities Government bond securities and municipal bond securities 89, , , , ,320 Corporate debt securities 169, , , , ,673 Equity securities 51,015 63,438 62,187 84,580 73,003 CMBS and RMBS in the US 66,965 67,433 69,436 63,960 46,258 Specified bonds issued by SPEs 266, , , , ,972 Others 73,204 72,406 74,112 85,398 50,783 Subtotal 716, , , , ,009 Held to Maturity Securities 9,733 43,741 43,732 43,723 Other Securities 184, , , , ,356 Total 910, ,029 1,013,090 1,104,158 1,081,287 Unrealized Gains (Losses) Trading Securities Available-for-Sale Securities Government bond securities and municipal bond securities 387 1,614 1, ,397 Corporate debt securities (3,323) (983) 116 (646) 3,116 Equity securities 14,579 9,518 6,667 13,088 4,697 CMBS and RMBS in the US (5,859) (3,564) (1,924) 317 (3,673) Specified bonds issued by SPEs (4,037) (3,226) (3,105) (3,391) (3,428) Others (652) 2,221 (754) Subtotal 1,802 3,592 2,298 12,044 2,355 Held-to-maturity Securities Other Securities (19) (259) (111) (123) 160 Total 1,783 3,333 2,187 11,921 2,515 Realized Gains (Losses) on Investment Securities Trading Securities 3,000 1, ,137 1,881 Available-for-Sale Securities Government bond securities and municipal bond securities Corporate debt securities (30) (80) 137 (531) 113 Equity securities (523) 664 CMBS and RMBS in the US (701) (737) (1,079) 6 (33) Specified bonds issued by SPEs (170) (104) (753) (1,967) Others 3 (1,748) (489) (1,620) Subtotal (233) (80) (1,369) (2,118) (2,735) Held to Maturity Securities Other Securities (893) (3,604) (2,514) (6,755) (1,914) Total 1,874 (2,067) (3,875) (4,736) (2,768) *Realized gains (losses) consist of gains (losses) from sales of securities in addition to gains (losses) in short term trading securities held and valuation losses of available-for-sale securities and others.

9 Information regarding Major Assets(2) Investments by ORIX Life Insurance Marketable Debt Securities 220, , , , ,443 Marketable Equity Securities 1,737 1, Held to Maturity Securities 9,733 43,741 43,732 43,723 Other Securities 11,021 4,033 1,860 1,678 1,473 Total Investment in Securities 232, , , , ,084 Installment Loans and Other Investments 205, , , , ,529 Total 438, , , , ,613 Life Insurance Related Investment Income Life Insurance Related Investment Income (loss) 2,201 3,532 3,198 2,534 3,005 Gains (Losses) on Investment Securities (243) 651 1, Interest on Investment Securities and Other Income 2,444 2,881 1,834 2,078 2,075 Selling, General and Administrative Expenses Personnel Expenses 30,686 34,139 36,484 32,937 31,976 Selling Expenses 5,152 4,433 3,436 6,215 4,418 Administrative Expenses 16,524 18,098 16,573 14,999 12,368 Depreciation Total 53,178 57,472 57,207 54,971 49,453 Asset Quality Days Past-Due Direct Financing Leases 29,789 26,817 27,034 25,682 23,836 Japan 24,713 21,894 21,940 20,794 19,593 Overseas 5,076 4,923 5,094 4,888 4, Days Past-Due Loans Not Individually Evaluated for Impairment 18,697 11,773 12,456 12,321 12,115 Loans Individually Evaluated for Impairment 444, , , , ,740 Effect of Accounting Changes 63,225 Impaired Loans Requiring Valuation Allowance 272, , , , ,472 Effect of Accounting Changes 63,225 Valuation Allowance 96, , , , ,142 Effect of Accounting Changes 23,054 Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses Beginning Balance* 158, , , , ,704 Direct Financing Leases 27,540 26,907 25,378 24,653 24,127 Loans Not Individually Evaluated for Impairment 41,768 41,557 31,508 31,703 37,098 Loans Individually Evaluated for Impairment 89,236 96, , , ,479 Provisions Charged to Income 12,404 27,070 9,339 22,719 5,992 Direct Financing Leases 1,105 1, ,672 1,008 Loans Not Individually Evaluated for Impairment 2,543 3,183 (62) 3, Loans Individually Evaluated for Impairment 8,756 22,714 8,544 17,601 4,743 Charge-offs, Net of Recoveries (6,177) (15,975) (13,318) (22,327) (11,656) Direct Financing Leases (1,953) (2,557) (1,765) (2,469) (1,830) Loans Not Individually Evaluated for Impairment (2,694) (1,883) (105) (1,666) (291) Loans Individually Evaluated for Impairment (1,530) (11,535) (11,448) (18,192) (9,535) Other** 39 (15,521) (1,861) Direct Financing Leases 215 (145) Loans Not Individually Evaluated for Impairment (60) (11,349) 362 (184) (387) Loans Individually Evaluated for Impairment (116) (4,027) (1,545) Ending Balance 164, , , , ,179 Direct Financing Leases 26,907 25,378 24,653 23,969 23,376 Loans Not Individually Evaluated for Impairment 41,557 31,508 31,703 33,299 36,661 Loans Individually Evaluated for Impairment 96, , , , ,142 *Results of the application of the Accounting Standards Update (ASC810 ( Consolidation )) are included in each amount. **Other includes foreign currency translation adjustments, reclassification of discontinued operations and decrease in allowance related to sales of subsidiaries.

10 Segment Information Segment Information Revenues 25,802 24,309 23,316 24,472 23,845 Corporate Financial Services Profits (Losses) 1,513 (10,926) (1,475) (6,807) 2,004 Assets 1,403,009 1,320,967 1,253,324 1,178,458 1,135,577 Revenues 57,441 56,780 55,759 56,199 56,777 Maintenance Leasing Profits 5,830 5,786 6,308 5,383 6,753 Assets 575, , , , ,171 Revenues 42,645 53,295 49,139 44,451 39,645 Real Estate Profits (Losses) , (1,502) 2,180 Assets 1,162,681 1,150,491 1,121,841 1,079,273 1,070,122 Revenues 23,580 22,829 20,253 32,395 26,765 Investment Banking Profits (Losses) (10,418) (3,976) (3,027) 4,010 2,109 Assets 1,159,652 1,142,208 1,127,254 1,071,255 1,062,218 Revenues 43,225 38,887 35,016 38,789 35,582 Retail Profits 5,181 9,639 5,122 11,162 8,105 Assets 1,596,300 1,419,020 1,485,195 1,578,758 1,611,351 Revenues 42,273 45,766 47,407 50,460 43,123 Overseas Business Profits 11,257 10,232 7,436 8,217 11,435 Assets 906, , , , ,634 Revenues 234, , , , ,737 Total Profits 13,624 21,222 14,551 20,463 32,586 Assets 6,803,690 6,440,158 6,390,218 6,284,275 6,244, Assets by Segment Corporate Financial Services Maintenance Leasing Real Estate Investment Banking Retail Overseas Business Total Investment in Direct Financing Leases 272, ,589 12, , , ,194 Installment Loans 769,808 7,643 1, , , ,362 2,316,214 Investment in Operating Leases 39, , , ,271 44, ,767 1,205,926 Investment in Securities 11,047 2,319 3, , , ,952 1,104,478 Other Operating Assets 18, ,383 26,185 18, ,858 Inventories 2, ,498 6,887 22, ,579 Advances for Investment in Operating Leases 6, ,455 1,338 2, ,578 Investment in Affiliates 16, ,467 58, ,786 82, ,246 Total 1,135, ,171 1,070,122 1,062,218 1,611, ,634 6,244,073

11 Segment Details (1) Corporate Financial Services / Maintenance Leasing Corporate Financial Services Segment Revenues 25,802 24,309 23,316 24,472 23,845 Segment Profits (Losses) 1,513 (10,926) (1,475) (6,807) 2,004 Investment in Direct Financing Leases 285, , , , , Days Past-due 22,570 19,772 20,013 19,069 17,918 Installment Loans 1,035, , , , , Days Past-due Loans Loans Individually Evaluated for Impairment 254, , , , ,824 Impaired Loans Requiring Valuation Allowance 159, , , , ,888 Valuation Allowance 53,934 59,785 57,431 59,729 58,037 Investment in Operating Leases 20,449 21,575 26,439 26,101 39,089 Investment in Securities 9,504 9,946 10,863 12,189 11,047 Other Operating Assets 19,503 19,169 18,892 18,337 18,109 Inventories 8,918 17,498 17,522 17,665 2,084 Advances for Investment in Operating Leases 7,275 7,021 6,699 6,611 6,344 Investment in Affiliates 15,549 16,103 16,093 16,233 16,103 Total Assets 1,403,009 1,320,967 1,253,324 1,178,458 1,135,577 Maintenance Leasing Segment Revenues 57,441 56,780 55,759 56,199 56,777 Segment Profits 5,830 5,786 6,308 5,383 6,753 Investment in Direct Financing Leases 203, , , , , Days Past-due 2,143 2,122 1,927 1,725 1,675 Installment Loans 11,014 10,000 9,294 8,278 7, Days Past-due Loans Loans Individually Evaluated for Impairment Impaired Loans Requiring Valuation Allowance Valuation Allowance Investment in Operating Leases 356, , , , ,616 Investment in Securities 1,592 2,150 1,943 2,075 2,319 Other Operating Assets 1,064 1,055 1,047 1,040 Inventories Advances for Investment in Operating Leases Investment in Affiliates Total Assets 575, , , , ,171

12 Segment Detailes (2) Real Estate / Investment Banking Real Estate Segment Revenues 42,645 53,295 49,139 44,451 39,645 Segment Profits (Losses) , (1,502) 2,180 Investment in Direct Financing Leases 17,570 17,891 17,305 12,586 12, Days Past-due Installment Loans 2, ,311 1, Days Past-due Loans Loans Individually Evaluated for Impairment Impaired Loans Requiring Valuation Allowance Valuation Allowance Investment in Operating Leases 595, , , , ,371 Investment in Securities 4,853 3,779 3,500 4,102 3,110 Other Operating Assets 129, , , , ,383 Inventories 133, , , , ,498 Advances for Investment in Operating Leases 206, , , , ,455 Investment in Affiliates 73,265 81,308 74,678 81,152 85,467 Total Assets 1,162,681 1,150,491 1,121,841 1,079,273 1,070,122 Investment Banking Segment Revenues 23,580 22,829 20,253 32,395 26,765 Segment Profits (Losses) (10,418) (3,976) (3,027) 4,010 2,109 Investment in Direct Financing Leases Days Past-due Installment Loans 534, , , , , Days Past-due Loans 7,309 7,979 8,155 8,654 8,439 Loans Individually Evaluated for Impairment 124, , ,763 89,645 85,505 Impaired Loans Requiring Valuation Allowance 56,771 64,474 68,500 69,971 63,254 Valuation Allowance 22,222 25,917 25,136 23,851 25,335 Investment in Operating Leases 132, , , , ,271 Investment in Securities 387, , , , ,448 Other Operating Assets 33,806 29,963 30,242 29,750 26,185 Inventories ,837 6,887 Advances for Investment in Operating Leases 1 1,338 Investment in Affiliates 70,079 77,204 74,644 57,692 58,323 Total Assets 1,159,652 1,142,208 1,127,254 1,071,255 1,062,218

13 Segment Details (3) Retail / Overseas Business Retail Segment Revenues 43,225 38,887 35,016 38,789 35,582 Segment Profits 5,181 9,639 5,122 11,162 8,105 Investment in Direct Financing Leases 37,327 35,276 31,844 28,516 25, Days Past-due Installment Loans 1,136, , , , , Days Past-due Loans 11,386 3,765 4,284 3,650 3,660 Loans Individually Evaluated for Impairment 39,130 23,297 24,331 16,734 16,748 Impaired Loans Requiring Valuation Allowance 39,130 23,297 24,331 16,734 16,748 Valuation Allowance 12,022 9,781 10,209 9,199 9,202 Investment in Operating Leases 46,011 45,743 45,430 45,122 44,812 Investment in Securities 369, , , , ,602 Other Operating Assets Inventories Advances for Investment in Operating Leases Investment in Affiliates 7, , , , ,786 Total Assets 1,596,300 1,419,020 1,485,195 1,578,758 1,611,351 Overseas Business Segment Revenues 42,273 45,766 47,407 50,460 43,123 Segment Profits 11,257 10,232 7,436 8,217 11,435 Investment in Direct Financing Leases 202, , , , , Days Past-due 5,076 4,923 5,094 4,888 4,243 Installment Loans 318, , , , , Days Past-due Loans Loans Individually Evaluated for Impairment 23,774 27,163 30,592 27,150 22,889 Impaired Loans Requiring Valuation Allowance 16,268 15,649 15,830 15,906 13,385 Valuation Allowance 7,703 7,790 7,613 7,110 6,927 Investment in Operating Leases 138, , , , ,767 Investment in Securities 124, , , , ,952 Other Operating Assets 5,266 6,677 6,195 6,135 18,181 Inventories 39,646 32,762 29,474 20,532 22,910 Advances for Investment in Operating Leases 3,162 3,179 3,632 2,565 2,280 Investment in Affiliates 75,167 74,549 76,640 86,700 82,924 Total Assets 906, , , , ,634