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

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Transcription:

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

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 1 2 3 4 5 6 7 8 9 10 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: http://www.orix.co.jp/grp/index_e.htm URL: http://www.orix.co.jp/grp/ir_e/ir_index.htm http://www.orix.co.jp/grp/ir_e/library/index.htm ORIX Corporation Corporate Planning Office Mita NN Bldg., 4-1-23 Shiba, Minato-ku, Tokyo 108-0014, Japan Tel: +81-3-5419-5042 Fax: +81-3-5419-5901 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.

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 2009-16 (ASC860 ( Transfers and Servicing )). This Update removes the concept of a qualifying special-purpose entity and removes the exception from applying ASC 810-10 ( 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 2009-17 (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 810-10, 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.

Key Quarterly Financial Information (1) Balance Sheet Data 2009.6 2009.9 2009.12 2010.3 2010.6 1) Investment in Direct Financing Leases 864,503 815,827 791,766 756,481 844,153 Japan 663,521 633,419 611,664 578,263 677,895 Overseas 200,982 182,408 180,102 178,218 166,258 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 308,174 272,413 265,807 256,308 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 141,833 129,647 129,517 129,939 128,034 4) Investment in Securities 910,253 945,029 1,013,090 1,104,158 1,081,287 Japan 791,651 816,270 847,210 940,938 928,967 Overseas 118,602 128,759 165,880 163,220 152,320 5) Other Operating Assets 189,403 187,890 186,851 186,396 215,859 Japan 185,790 182,987 182,435 182,022 199,433 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 428,226 417,856 409,481 409,957 398,965 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 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 157,222 164,671 131,934 144,219 143,024 Japan 155,273 153,847 115,807 127,385 112,566 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 61,869 130,729 147,966 179,205 244,610 Japan 44,434 101,938 133,447 170,485 237,835 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 2009.6 2009.9 2009.12 2010.3 2010.6 Average Rate 97.13 93.61 90.14 91.09 91.73 Period End Rate 96.01 90.21 92.10 93.04 88.48 1

Key Quarterly Financial Information(2) Income Statement Data 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 1,059 919 334 3 Net gains on investment securities 4,615 1,270 319 8,622 3,503 Dividends income 1,759 701 567 2,046 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 1,766 56 4,531 103 Japan 488 1,766 56 4,531 79 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* 233,043 229,768 227,264 242,065 234,514 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 102 196 3,166 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* 211,196 230,554 217,277 243,430 212,157 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) 11,418 346 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 6,914 911 566 2,296 Net Income 7,187 13,301 9,353 11,096 16,867 Net Income (Loss) Attributable to Noncontrolling Interests (444) (297) 1,307 138 (13) Net Income Attributable to Redeemable Noncontrolling Interests 439 640 763 634 430 Net Income Attributable to ORIX Corporation 7,192 12,958 7,283 10,324 16,450 *Pursuant to ASC 205-20 "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

Key Quarterly Financial Information(3) Key Ratios, Per Share Data and Employees 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 4.9 4.3 4.3 4.1 5.0 Debt-to-Equity Ratio (times) (Short+Long-Term Debt)/Shareholders' Equity 4.3 3.7 3.7 3.4 4.3 Debt-to-Equity Ratio (times) (Short+Long-Term Debt)/Shareholders' Equity 4.0 3.5 3.5 3.2 3.3 Shareholders Equity Per Share (yen) 13,147.74 11,776.43 11,880.10 12,082.56 11,785.67 Basic EPS (yen) 80.45 125.89 67.77 96.06 153.05 Diluted EPS (yen) 68.04 106.59 58.83 82.23 129.27 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 2009-17 (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 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 2009-17 (ASC810 ( Consolidation )) are not reflected on the margins above. Credit Ratings 2009.6 2009.9 2009.12 2010.3 2010.6 R&I Short-Term Debt (CP) 1 1 1 1 1 Long-Term Debt JCR Short-Term Debt (CP) 1 1 1 1 1 Long-Term Debt S&P Long-Term Debt Moody's Long-Term Debt 3 3 3 3 3 3

Funding Funding 2009.6 2009.9 2009.12 2010.3 2010.6 Short-Term Debt Borrowings from Financial Institutions 507,246 366,132 399,820 271,234 316,744 *Medium-Term Notes 3,500 21,550 19,550 19,550 19,550 *Commercial Paper 306,750 316,486 315,664 282,781 279,170 Total Short-Term Debt 817,496 704,168 735,034 573,565 615,464 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 96,589 104,310 95,895 *Asset-Backed Securities, Commercial Mortgage Backed Securities 340,147 231,557 223,603 202,224 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 708,680 744,458 806,995 853,269 897,733 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 2009.6 2009.9 2009.12 2010.3 2010.6 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 2009.6 2009.9 2009.12 2010.3 2010.6 Credit Lines 494,553 472,441 446,725 426,729 423,723 Available Credit 276,743 370,341 363,001 385,892 387,782 Securitization (DFLs and Installment Loans) 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 Direct Financing Leases Securitized 5,241 3,041 9,806 9,886 Gains (Losses) on Securitization of Direct Financing Leases (78) (29) 202 236 Off-Balance Direct Financing Leases 199,377 175,487 160,035 146,337 22,551 Managed Direct Financing Leases 1,063,880 991,314 951,801 902,818 866,704 Installment Loans Securitized Gains on Securitization of Installment Loans Off-Balance Installment Loans 124,481 118,126 116,592 111,317 Managed Installment Loans 3,288,610 2,801,644 2,735,153 2,575,568 3,360,338 Securitization (Securities) 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 Securities Securitized Gains on Securitization of Securities Off-Balance Securities 43,859 32,495 32,037 31,123 Total Off-Balance Assets 367,717 326,108 308,664 288,777 22,551 4

Information regarding Major Assets (1) Investment in Direct Financing Leases 2009.6 2009.9 2009.12 2010.3 2010.6 Minimum Lease Payments Receivable 951,810 900,772 877,132 840,453 936,129 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 864,503 815,827 791,766 756,481 844,153 Investment in Direct Financing Leases by Category 2009.6 2009.9 2009.12 2010.3 2010.6 Information-Related and Office Equipment 92,228 85,925 80,948 74,113 88,031 Industrial Equipment 120,446 106,918 101,858 102,137 111,733 Commercial Services Equipment 72,837 66,361 61,192 54,481 61,292 Transportation Equipment 349,133 330,331 319,114 311,381 313,305 Other Equipment 229,859 226,292 228,654 214,369 269,792 Total 864,503 815,827 791,766 756,481 844,153 Investment in Operating Leases by Category 2009.6 2009.9 2009.12 2010.3 2010.6 Transportation Equipment 385,225 370,007 360,854 358,227 362,768 Measuring and Information-Related Equipment 58,942 55,399 53,299 51,170 50,312 Real Estate 821,135 835,388 840,936 782,272 780,482 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 2009.6 2009.9 2009.12 2010.3 2010.6 Consumer Borrowers in Japan: Housing Loans 711,703 718,674 727,427 731,184 812,585 Card Loans 328,200 Other 57,039 48,423 51,957 13,663 13,582 Subtotal 1,096,942 767,097 779,384 744,847 826,167 Corporate Borrowers in Japan: Real Estate Companies 616,646 567,971 500,925 447,181 427,220 Commercial, Industrial and Other Companies 1,014,361 954,225 957,160 904,729 960,072 Subtotal 1,631,007 1,522,196 1,458,085 1,351,910 1,387,292 Overseas Commercial, Industrial and Other Borrowers 293,600 257,896 253,756 244,521 1,026,270 Purchased loans 142,580 136,329 127,336 122,973 120,609 Total 3,164,129 2,683,518 2,618,561 2,464,251 3,360,338 Investment in Securities 2009.6 2009.9 2009.12 2010.3 2010.6 Trading Securities 8,620 8,879 37,634 49,596 57,199 Available-for-Sale Securities Government bond securities and municipal bond securities 89,159 106,143 123,037 165,700 187,320 Corporate debt securities 169,491 183,804 180,220 199,291 224,673 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 266,983 259,427 253,345 246,305 220,972 Others 73,204 72,406 74,112 85,398 50,783 Subtotal 716,817 752,651 762,337 845,234 803,009 Held to Maturity Securities 9,733 43,741 43,732 43,723 Other Securities 184,816 173,766 169,378 165,596 177,356 Total 910,253 945,029 1,013,090 1,104,158 1,081,287 Unrealized Gains (Losses) 2009.6 2009.9 2009.12 2010.3 2010.6 Trading Securities Available-for-Sale Securities Government bond securities and municipal bond securities 387 1,614 1,196 455 2,397 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 55 233 (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 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 Trading Securities 3,000 1,617 8 4,137 1,881 Available-for-Sale Securities Government bond securities and municipal bond securities 425 720 404 172 108 Corporate debt securities (30) (80) 137 (531) 113 Equity securities 243 118 917 (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.

Information regarding Major Assets(2) Investments by ORIX Life Insurance 2009.6 2009.9 2009.12 2010.3 2010.6 Marketable Debt Securities 220,002 232,062 223,313 245,133 251,443 Marketable Equity Securities 1,737 1,292 634 495 445 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 232,760 247,120 269,548 291,038 297,084 Installment Loans and Other Investments 205,954 193,135 182,510 174,297 171,529 Total 438,714 440,255 452,058 465,335 468,613 Life Insurance Related Investment Income 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 Life Insurance Related Investment Income (loss) 2,201 3,532 3,198 2,534 3,005 Gains (Losses) on Investment Securities (243) 651 1,364 456 930 Interest on Investment Securities and Other Income 2,444 2,881 1,834 2,078 2,075 Selling, General and Administrative Expenses 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 816 802 714 820 691 Total 53,178 57,472 57,207 54,971 49,453 Asset Quality 2009.6 2009.9 2009.12 2010.3 2010.6 90+ 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 4,243 90+ Days Past-Due Loans Not Individually Evaluated for Impairment 18,697 11,773 12,456 12,321 12,115 Loans Individually Evaluated for Impairment 444,548 389,204 382,740 348,143 387,740 Effect of Accounting Changes 63,225 Impaired Loans Requiring Valuation Allowance 272,334 279,213 269,253 268,145 309,472 Effect of Accounting Changes 63,225 Valuation Allowance 96,346 103,498 100,711 100,255 122,142 Effect of Accounting Changes 23,054 Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 Beginning Balance* 158,544 164,810 160,384 157,067 189,704 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 96,346 103,498 100,711 128,479 Provisions Charged to Income 12,404 27,070 9,339 22,719 5,992 Direct Financing Leases 1,105 1,173 857 1,672 1,008 Loans Not Individually Evaluated for Impairment 2,543 3,183 (62) 3,446 241 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) 662 64 (1,861) Direct Financing Leases 215 (145) 183 113 71 Loans Not Individually Evaluated for Impairment (60) (11,349) 362 (184) (387) Loans Individually Evaluated for Impairment (116) (4,027) 117 135 (1,545) Ending Balance 164,810 160,384 157,067 157,523 182,179 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 96,346 103,498 100,711 100,255 122,142 *Results of the application of the Accounting Standards Update 2009-17 (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.

Segment Information Segment Information 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2001.4-6 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 575,451 555,659 527,495 515,716 524,171 Revenues 42,645 53,295 49,139 44,451 39,645 Real Estate Profits (Losses) 261 10,467 187 (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 906,597 851,813 875,109 860,815 840,634 Revenues 234,966 241,866 230,890 246,766 225,737 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 6,244,073 2010.6 Assets by Segment Corporate Financial Services Maintenance Leasing Real Estate Investment Banking Retail Overseas Business Total Investment in Direct Financing Leases 272,993 172,589 12,525 89 25,740 166,258 650,194 Installment Loans 769,808 7,643 1,313 459,677 830,411 247,362 2,316,214 Investment in Operating Leases 39,089 340,616 512,371 152,271 44,812 116,767 1,205,926 Investment in Securities 11,047 2,319 3,110 357,448 546,602 183,952 1,104,478 Other Operating Assets 18,109 153,383 26,185 18,181 215,858 Inventories 2,084 200 111,498 6,887 22,910 143,579 Advances for Investment in Operating Leases 6,344 161 190,455 1,338 2,280 200,578 Investment in Affiliates 16,103 643 85,467 58,323 163,786 82,924 407,246 Total 1,135,577 524,171 1,070,122 1,062,218 1,611,351 840,634 6,244,073

Segment Details (1) Corporate Financial Services / Maintenance Leasing Corporate Financial Services 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 285,884 281,247 278,874 264,139 272,993 90+ Days Past-due 22,570 19,772 20,013 19,069 17,918 Installment Loans 1,035,927 948,408 877,942 817,183 769,808 90+ Days Past-due Loans Loans Individually Evaluated for Impairment 254,591 227,381 220,568 212,240 200,824 Impaired Loans Requiring Valuation Allowance 159,168 175,304 159,975 164,759 155,888 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 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 203,398 192,839 179,993 172,605 172,589 90+ Days Past-due 2,143 2,122 1,927 1,725 1,675 Installment Loans 11,014 10,000 9,294 8,278 7,643 90+ Days Past-due Loans Loans Individually Evaluated for Impairment 201 51 59 51 49 Impaired Loans Requiring Valuation Allowance 201 51 59 51 49 Valuation Allowance 104 9 11 10 10 Investment in Operating Leases 356,821 348,743 334,309 329,928 340,616 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 916 217 216 418 200 Advances for Investment in Operating Leases 92 113 80 741 161 Investment in Affiliates 554 542 613 631 643 Total Assets 575,451 555,659 527,495 515,716 524,171

Segment Detailes (2) Real Estate / Investment Banking Real Estate 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 Segment Revenues 42,645 53,295 49,139 44,451 39,645 Segment Profits (Losses) 261 10,467 187 (1,502) 2,180 Investment in Direct Financing Leases 17,570 17,891 17,305 12,586 12,525 90+ Days Past-due Installment Loans 2,137 357 360 1,311 1,313 90+ Days Past-due Loans Loans Individually Evaluated for Impairment 197 197 197 197 197 Impaired Loans Requiring Valuation Allowance 197 197 197 197 197 Valuation Allowance 163 163 163 163 163 Investment in Operating Leases 595,016 597,111 591,897 548,988 512,371 Investment in Securities 4,853 3,779 3,500 4,102 3,110 Other Operating Assets 129,763 131,025 130,474 131,133 153,383 Inventories 133,799 123,749 111,540 105,763 111,498 Advances for Investment in Operating Leases 206,278 195,271 192,087 194,238 190,455 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 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 400 152 114 115 89 90+ Days Past-due Installment Loans 534,004 507,011 501,581 461,035 459,677 90+ Days Past-due Loans 7,309 7,979 8,155 8,654 8,439 Loans Individually Evaluated for Impairment 124,216 108,738 104,763 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 132,996 146,215 153,040 136,451 152,271 Investment in Securities 387,532 381,083 366,964 377,374 357,448 Other Operating Assets 33,806 29,963 30,242 29,750 26,185 Inventories 835 580 669 8,837 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

Segment Details (3) Retail / Overseas Business Retail 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 25,740 90+ Days Past-due Installment Loans 1,136,185 813,796 839,053 821,146 830,411 90+ 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 369,426 394,097 437,972 516,681 546,602 Other Operating Assets Inventories Advances for Investment in Operating Leases Investment in Affiliates 7,351 130,108 130,896 167,293 163,786 Total Assets 1,596,300 1,419,020 1,485,195 1,578,758 1,611,351 Overseas Business 2009.4-6 2009.7-9 2009.10-12 2010.1-3 2010.4-6 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 202,514 183,860 181,556 178,220 166,258 90+ Days Past-due 5,076 4,923 5,094 4,888 4,243 Installment Loans 318,127 281,735 271,594 261,549 247,362 90+ Days Past-due Loans 2 29 17 17 16 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 138,055 125,890 125,389 125,850 116,767 Investment in Securities 124,660 143,161 180,629 179,264 183,952 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 906,597 851,813 875,109 860,815 840,634