ORIX Corporation (NYSE: IX; TSE: 8591) Consolidated Financial Results Supplementary Information for the Three-months Ended June 30, 2012 (July 25, 2012)
Contents Financial Highlights Segment Information : Segment Information & Assets by Segment Segment Details (1) : Corporate Financial Services & Maintenance Leasing Segment Details (2) : Real Estate & Investment and Operation Segment Details (3) : Retail & Overseas Business Key Quarterly Financial Info (1) : Balance Sheet Data & New Business Volumes Key Quarterly Financial Info (2) : Income Statement Data Funding Information regarding Major Assets (1) Information regarding Major Assets (2) Non-GAAP Financial Measures Page 1 2 3 4 5 6 7 8 9 10 11-12 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/en/ URL: http://www.orix.co.jp/grp/en/ir/ URL: http://www.orix.co.jp/grp/en/ir/library/ 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. These materials contain non-gaap financial measures, including adjusted long-term and interest-bearing debt, adjusted total assets and adjusted ORIX Corporation shareholders' equity, as well as other measures and ratios calculated on the basis thereof. These Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable financial measures included in our consolidated financial statements presented in accordance with U.S. GAAP. Reconciliations of these Non-GAAP financial measures to the most directly comparable U.S. GAAP measures are included on page 11 and 12 in these materials. 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.
Financial Highlights 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Total Revenues 238,126 236,557 229,623 268,441 251,791 Income before Income Taxes and Discontinued Operations 37,921 37,448 27,373 25,292 47,467 Net Income Attributable to ORIX Corporation 23,237 21,457 21,946 16,869 34,773 Total Assets 8,399,843 8,234,545 8,173,257 8,332,830 8,177,457 Total Liabilities 7,009,588 6,846,449 6,757,666 6,874,726 6,711,659 ORIX Corporation Shareholders Equity 1,314,808 1,316,874 1,342,689 1,380,736 1,389,372 Segment Profits (Losses) 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Corporate Financial Services 2,767 5,789 6,193 6,783 6,100 Maintenance Leasing 8,036 10,276 8,805 7,593 9,247 Real Estate 1,121 2,333 (6,331) 4,226 1,843 Investment and Operation 5,454 9,477 2,879 (1,827) 10,578 Retail 9,214 (3,364) 7,730 5,773 13,427 Overseas Business 14,851 14,218 10,239 10,460 11,485 Total 41,443 38,729 29,515 33,008 52,680 Segment Assets 2011.6 2011.9 2011.12 2012.3 2012.6 Corporate Financial Services 897,778 891,819 860,482 898,776 904,993 Maintenance Leasing 509,514 515,360 521,486 537,782 558,462 Real Estate 1,512,306 1,467,635 1,405,440 1,369,220 1,310,292 Investment and Operation 507,357 511,850 499,447 471,145 452,451 Retail 1,652,210 1,670,787 1,701,641 1,738,454 1,921,422 Overseas Business 961,493 889,259 933,932 986,762 985,236 Total 6,040,658 5,946,710 5,922,428 6,002,139 6,132,856 Key Ratios, Per Share Data (1) 2011.4-6 2011.4-9 2011.4-12 2011.4-2012.3 2012.4-6 Return on Equity (ROE) * 7.1% 6.8% 6.7% 6.2% 10.1% Return on Assets (ROA) * 1.10% 1.06% 1.06% 0.99% 1.70% Return on Segment Assets (ROA) * 1.53% 1.48% 1.47% 1.38% 2.29% * Annualized Key Ratios, Per Share Data and Employees (2) 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Shareholders Equity Ratio (1) 15.7% 16.0% 16.4% 16.6% 17.0% Shareholders Equity Ratio (2) 18.0% 18.2% 18.7% 18.8% 19.0% Debt-to-Equity Ratio (times) (Short and Long-Term Debt+Deposits)/Shareholders' Equity 4.5 4.4 4.2 4.2 4.1 Debt-to-Equity Ratio (1) (times) (Short and Long-Term Debt)/Shareholders' Equity 3.7 3.5 3.5 3.4 3.3 Debt-to-Equity Ratio (2) (times) (Short and Long-Term Debt)/Shareholders' Equity 2.9 2.8 2.8 2.8 2.7 Shareholders Equity Per Share (yen) 12,230.62 12,248.72 12,488.83 12,841.46 12,921.78 Basic EPS (yen) 216.16 199.58 204.13 156.90 323.41 Diluted EPS (yen) 180.51 166.95 170.67 132.26 270.27 Number of Employees 17,697 17,553 18,205 17,488 18,662 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. Shareholders Equity Ratio (2) and Debt-to-Equity Ratio (2) are presented on an adjusted basis, which excludes the effect of consolidating certain assets and liabilities attributable to consolidated VIEs and our adoption of the Accounting Standards Update 2009-17 (ASC 810 ( Consolidation )). For a presentation of the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP and a quantitative 1
Segment Information 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Corporate Financial Services Revenues 18,337 17,723 17,463 18,926 18,093 Profits 2,767 5,789 6,193 6,783 6,100 Assets 897,778 891,819 860,482 898,776 904,993 Maintenance Leasing Revenues 57,779 59,767 57,909 56,496 58,437 Profits 8,036 10,276 8,805 7,593 9,247 Assets 509,514 515,360 521,486 537,782 558,462 Real Estate Revenues 50,084 45,822 52,605 74,120 56,466 Profits (Losses) 1,121 2,333 (6,331) 4,226 1,843 Assets 1,512,306 1,467,635 1,405,440 1,369,220 1,310,292 Investment and Operation Revenues 15,659 24,507 16,513 16,614 23,009 Profits (Losses) 5,454 9,477 2,879 (1,827) 10,578 Assets 507,357 511,850 499,447 471,145 452,451 Retail Revenues 39,797 40,032 37,140 43,102 40,174 Profits (Losses) 9,214 (3,364) 7,730 5,773 13,427 Assets 1,652,210 1,670,787 1,701,641 1,738,454 1,921,422 Overseas Business Revenues 50,060 41,248 41,978 53,954 45,004 Profits 14,851 14,218 10,239 10,460 11,485 Assets 961,493 889,259 933,932 986,762 985,236 Total Revenues 231,716 229,099 223,608 263,212 241,183 Profits 41,443 38,729 29,515 33,008 52,680 Assets 6,040,658 5,946,710 5,922,428 6,002,139 6,132,856 Assets by Segment (2012.6) Corporate Financial Services Maintenance Leasing Real Estate Investment and Operation Retail Overseas Business Total Investment in Direct Financing Leases 315,958 169,169 8,665 11,038 14,759 227,823 747,412 Installment Loans 528,611 19,566 121,335 178,175 1,194,473 218,822 2,260,982 Investment in Operating Leases 29,567 365,179 671,258 12,105 69,891 167,695 1,315,695 Investment in Securities 12,251 2,035 80,624 159,408 615,776 223,705 1,093,799 Other Operating Assets 612 169 169,646 26,027-18,197 214,651 Inventories 17 830 51,232 652-20,257 72,988 Advances for Investment in Operating Leases 979 387 102,539 13-14,625 118,543 Investment in Affiliates 16,998 1,127 90,348 65,033 26,523 94,112 294,141 Advances for Investment in Other Operating As - - 14,645 - - - 14,645 Total 904,993 558,462 1,310,292 452,451 1,921,422 985,236 6,132,856 2012.6 Assets by Overseas Region Overseas Business America 340,844 Asia and Australia (Other than Greater China) 364,019 Greater China 147,274 Middle East and Europe 12,260 Other 120,839 Total 985,236 2
Corporate Financial Services 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Segment Revenues 18,337 17,723 17,463 18,926 18,093 Segment Profits 2,767 5,789 6,193 6,783 6,100 Investment in Direct Financing Leases 264,081 266,693 260,586 297,598 315,958 90+ Days Past-due Direct Financing Leases 17,609 17,184 16,121 13,453 13,269 Installment Loans 573,359 565,464 540,706 540,388 528,611 90+ Days Past-due Loans - - - - - Loans Individually Evaluated for Impairment 146,299 138,683 129,841 118,431 113,410 Impaired Loans Requiring Valuation Allowance 105,088 96,891 91,251 88,039 86,115 Valuation Allowance 38,360 34,551 33,508 33,295 32,236 Investment in Operating Leases 29,997 29,654 29,767 29,783 29,567 Investment in Securities 11,575 11,431 11,291 13,158 12,251 Other Operating Assets 1,465 1,449 639 624 612 Inventories 19 12 10 15 17 Advances for Investment in Operating Leases 994 636 547 368 979 Investment in Affiliates 16,288 16,480 16,936 16,842 16,998 Advances for Investment in Other Operating Assets - - - - - Total Assets 897,778 891,819 860,482 898,776 904,993 Maintenance Leasing 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Segment Revenues 57,779 59,767 57,909 56,496 58,437 Segment Profits 8,036 10,276 8,805 7,593 9,247 Investment in Direct Financing Leases 151,450 159,730 154,094 155,230 169,169 90+ Days Past-due Direct Financing Leases 1,222 1,061 1,081 934 1,180 Installment Loans 11,947 11,691 13,873 17,339 19,566 90+ Days Past-due Loans - - - - - Loans Individually Evaluated for Impairment 8 8 8 8 8 Impaired Loans Requiring Valuation Allowance 8 8 8 8 8 Valuation Allowance 2 2 2 2 2 Investment in Operating Leases 342,569 339,912 349,408 361,089 365,179 Investment in Securities 1,881 1,997 1,934 2,069 2,035 Other Operating Assets - 54 94 135 169 Inventories 669 1,067 898 797 830 Advances for Investment in Operating Leases 269 174 362 243 387 Investment in Affiliates 729 735 823 880 1,127 Advances for Investment in Other Operating Assets - - - - - Total Assets 509,514 515,360 521,486 537,782 558,462 3
Real Estate 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Segment Revenues 50,084 45,822 52,605 74,120 56,466 Segment Profits (Losses) 1,121 2,333 (6,331) 4,226 1,843 Investment in Direct Financing Leases 10,081 8,897 8,823 8,745 8,665 90+ Days Past-due Direct Financing Leases - - - - - Installment Loans 167,700 155,772 147,316 137,256 121,335 90+ Days Past-due Loans - - - - - Loans Individually Evaluated for Impairment 26,199 29,695 29,511 27,944 35,129 Impaired Loans Requiring Valuation Allowance 16,813 17,533 18,478 19,021 18,617 Valuation Allowance 5,501 8,493 8,498 9,331 8,603 Investment in Operating Leases 725,563 699,336 665,961 694,470 671,258 Investment in Securities 147,186 134,166 119,017 99,694 80,624 Other Operating Assets 165,672 165,905 161,844 165,460 169,646 Inventories 84,908 85,571 81,401 60,780 51,232 Advances for Investment in Operating Leases 109,233 111,417 103,783 100,135 102,539 Investment in Affiliates 83,185 85,300 94,189 84,697 90,348 Advances for Investment in Other Operating Assets 18,778 21,271 23,106 17,983 14,645 Total Assets 1,512,306 1,467,635 1,405,440 1,369,220 1,310,292 Investment and Operation 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Segment Revenues 15,659 24,507 16,513 16,614 23,009 Segment Profits (Losses) 5,454 9,477 2,879 (1,827) 10,578 Investment in Direct Financing Leases 10,370 10,411 10,242 11,951 11,038 90+ Days Past-due Direct Financing Leases 13 13 13 19 13 Installment Loans 217,747 209,868 207,193 189,980 178,175 90+ Days Past-due Loans 7,274 6,589 6,378 6,230 6,096 Loans Individually Evaluated for Impairment 42,777 52,332 51,926 47,184 39,492 Impaired Loans Requiring Valuation Allowance 39,685 37,737 36,997 40,384 33,687 Valuation Allowance 19,219 19,465 19,773 20,862 14,630 Investment in Operating Leases 17,024 16,582 12,866 12,389 12,105 Investment in Securities 168,705 180,723 175,579 173,461 159,408 Other Operating Assets 34,132 33,738 32,574 21,588 26,027 Inventories 419 385 425 294 652 Advances for Investment in Operating Leases 498 - - 13 13 Investment in Affiliates 58,462 60,143 60,568 61,469 65,033 Advances for Investment in Other Operating Assets - - - - - Total Assets 507,357 511,850 499,447 471,145 452,451 4
Retail 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Segment Revenues 39,797 40,032 37,140 43,102 40,174 Segment Profits (Losses) 9,214 (3,364) 7,730 5,773 13,427 Investment in Direct Financing Leases 19,315 16,878 17,814 17,127 14,759 90+ Days Past-due Direct Financing Leases - - - - - Installment Loans 872,938 893,484 911,350 948,270 1,194,473 90+ Days Past-due Loans 2,961 2,522 2,345 2,327 2,908 Loans Individually Evaluated for Impairment 14,691 14,367 13,616 16,083 15,948 Impaired Loans Requiring Valuation Allowance 13,249 12,001 12,265 14,840 15,639 Valuation Allowance 5,557 4,329 4,478 5,890 5,839 Investment in Operating Leases 41,347 40,880 47,224 45,317 69,891 Investment in Securities 616,480 627,983 639,698 648,485 615,776 Other Operating Assets - - - - - Inventories - - - - - Advances for Investment in Operating Leases - - - - - Investment in Affiliates 102,130 91,562 85,555 79,255 26,523 Advances for Investment in Other Operating Assets - - - - - Total Assets 1,652,210 1,670,787 1,701,641 1,738,454 1,921,422 Overseas Business 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Segment Revenues 50,060 41,248 41,978 53,954 45,004 Segment Profits 14,851 14,218 10,239 10,460 11,485 Investment in Direct Financing Leases 195,720 188,119 203,911 231,767 227,823 90+ Days Past-due Direct Financing Leases 4,293 3,836 2,905 3,035 2,626 Installment Loans 227,758 208,680 217,344 235,677 218,822 90+ Days Past-due Loans 75 68 47 47 54 Loans Individually Evaluated for Impairment 20,711 22,332 21,244 25,918 22,999 Impaired Loans Requiring Valuation Allowance 13,367 13,529 8,959 20,288 17,363 Valuation Allowance 4,701 5,474 4,706 6,480 5,660 Investment in Operating Leases 161,959 146,513 158,958 160,751 167,695 Investment in Securities 223,512 215,501 226,230 217,135 223,705 Other Operating Assets 15,726 16,233 16,850 18,285 18,197 Inventories 16,060 16,499 12,631 17,721 20,257 Advances for Investment in Operating Leases 14,208 14,510 15,868 16,862 14,625 Investment in Affiliates 106,550 83,204 82,140 88,564 94,112 Advances for Investment in Other Operating Assets - - - - - Total Assets 961,493 889,259 933,932 986,762 985,236 5
Balance Sheet Data 2011.6 2011.9 2011.12 2012.3 2012.6 1)Investment in Direct Financing Leases 822,235 813,525 839,630 900,886 905,553 Japan 626,801 625,432 635,732 669,131 677,751 Overseas 195,434 188,093 203,898 231,755 227,802 2)Installment Loans 2,864,767 2,760,017 2,741,097 2,769,898 2,879,713 Japan 2,054,970 2,034,982 2,003,279 2,000,716 2,173,639 Overseas 809,797 725,035 737,818 769,182 706,074 3)Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses (146,903) (139,134) (131,538) (136,588) (127,686) (Allowance/Investment in Direct Financing Leases and Installment Loans) (4.0%) (3.9%) (3.7%) (3.7%) (3.4%) 4)Investment in Operating Leases 1,326,117 1,278,964 1,270,104 1,309,998 1,321,279 Japan 1,156,557 1,124,756 1,103,131 1,140,247 1,148,033 Overseas 169,560 154,208 166,973 169,751 173,246 5)Investment in Securities 1,163,810 1,167,372 1,167,720 1,147,390 1,089,057 Japan 975,018 990,176 980,764 974,536 903,465 Overseas 188,792 177,196 186,956 172,854 185,592 6)Other Operating Assets 218,227 218,687 213,312 206,109 214,652 Japan 203,998 203,937 197,946 189,293 197,841 Overseas 14,229 14,750 15,366 16,816 16,811 7)Investment in Affiliates 367,346 337,452 340,220 331,717 294,317 8)Inventories 102,150 103,591 95,409 79,654 73,054 9)Other Assets (Cash and Cash Equivalents etc.) 1,682,094 1,694,071 1,637,303 1,723,766 1,527,518 Total Assets 8,399,843 8,234,545 8,173,257 8,332,830 8,177,457 Short-Term Debt, Long-Term Debt and Deposits 5,913,189 5,728,423 5,703,311 5,828,967 5,673,130 Policy Liabilities 395,740 396,920 399,789 405,017 406,852 Other Liabilities(Trade notes and Accounts payable etc.) 700,659 721,106 654,566 640,742 631,677 Total Liabilities 7,009,588 6,846,449 6,757,666 6,874,726 6,711,659 Redeemable Noncontrolling Interests (RNCI) 34,126 32,948 34,056 37,633 37,486 ORIX Corporation Shareholders Equity 1,314,808 1,316,874 1,342,689 1,380,736 1,389,372 Noncontrolling Interests 41,321 38,274 38,846 39,735 38,940 Total Equity 1,356,129 1,355,148 1,381,535 1,420,471 1,428,312 Total Liabilities, RNCI and Equity 8,399,843 8,234,545 8,173,257 8,332,830 8,177,457 *Prior-year amounts have been adjusted for the retrospective adoption of Accounting Standards Update 2010-26 ( Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts ASC 944 ( Financial Services Insurance )) on April 1, 2012. New Business Volumes 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Direct Financing Leases: New equipment acquisitions 85,856 106,251 97,976 115,577 112,306 Japan 48,287 67,094 61,457 77,520 72,491 Overseas 37,569 39,157 36,519 38,057 39,815 Installment Loans: New loans added 147,556 197,743 169,714 228,100 171,387 Japan 107,030 169,300 129,234 183,251 125,238 Overseas 40,526 28,443 40,480 44,849 46,149 Operating Leases: New equipment acquisitions 105,051 40,427 52,195 49,149 60,036 Japan 93,606 30,685 33,350 39,483 36,974 (Real Estate) (65,797) (1,550) (2,592) (4,130) (734) Overseas 11,445 9,742 18,845 9,666 23,062 Investment in Securities: New securities added 179,535 219,703 172,871 127,600 142,001 Japan 143,068 206,449 155,010 121,656 134,402 Overseas 36,467 13,254 17,861 5,944 7,599 Other Operating Transactions: New assets added 8,029 9,868 7,811 12,168 4,374 Japan 8,029 8,785 7,633 12,101 4,087 Overseas - 1,083 178 67 287 Yen/Dollar Exchange Rate 2011.6 2011.9 2011.12 2012.3 2012.6 Average Rate 81.71 77.99 77.57 79.25 80.40 Period End Rate 80.73 76.65 77.74 82.19 79.31 (yen) 6
Income Statement Data 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Revenues 1)Direct financing leases 12,670 12,429 12,899 12,936 13,385 Japan 8,712 8,503 8,896 8,536 8,939 Overseas 3,958 3,926 4,003 4,400 4,446 2)Operating leases 72,715 76,496 73,437 74,639 72,727 Japan 56,586 61,104 58,232 59,738 57,917 Overseas 16,129 15,392 15,205 14,901 14,810 3)Interest on loans and investment securities 37,302 38,171 36,896 35,519 38,856 Interest on loans 33,662 34,332 33,140 31,585 35,692 Japan 18,503 19,285 18,752 18,178 21,502 Overseas 15,159 15,047 14,388 13,407 14,190 Interest on investment securities 3,640 3,839 3,756 3,934 3,164 Japan 2,354 2,359 2,333 2,530 1,827 Overseas 1,286 1,480 1,423 1,404 1,337 4)Brokerage commissions and net gains on investment securities 7,249 11,700 657 7,303 6,736 Net gains (losses) on investment securities 5,424 11,104 (294) 6,232 3,998 Dividends income, other 1,825 596 951 1,071 2,738 5)Life insurance premiums and related investment income 31,161 32,264 29,791 35,091 32,507 Life insurance premiums 26,587 29,771 27,234 33,244 30,041 Related investment income 4,574 2,493 2,557 1,847 2,466 6)Real estate sales 11,003 5,199 9,960 34,867 12,504 Japan 11,003 5,199 9,960 34,867 12,504 Overseas - - - - - 7)Gains on sales of real estate under operating leases 165 88 1,852 110 315 Japan 165 88 1,852 110 315 Overseas - - - - - 8)Other operating revenues 65,861 60,210 64,131 67,976 74,761 Japan 49,924 50,401 48,859 47,138 58,933 Overseas 15,937 9,809 15,272 20,838 15,828 Total Revenues 238,126 236,557 229,623 268,441 251,791 Expenses 1)Interest expense 29,341 27,880 27,344 26,285 27,458 2)Costs of operating leases 46,750 47,410 46,818 48,305 46,846 3)Life insurance costs 21,731 23,498 21,158 27,034 21,839 4)Costs of real estate sales 11,076 5,485 10,828 32,145 13,402 5)Other operating expenses 39,005 36,453 37,849 36,764 42,840 6)Selling, general and administrative expenses 49,697 43,302 49,055 54,132 51,027 Japan 32,443 31,114 31,520 33,383 32,694 Personnel expenses 19,280 18,704 18,669 18,692 19,138 Others 13,163 12,410 12,851 14,691 13,556 Overseas 17,254 12,188 17,535 20,749 18,333 Personnel expenses 12,791 9,738 12,227 16,419 13,203 Others 4,463 2,450 5,308 4,330 5,130 7)Provision for doubtful receivables and probable loan losses 3,513 5,274 (529) 10,957 1,214 8)Write-downs of long-lived assets 1,520 380 8,793 4,474 1,320 9)Write-downs of securities 3,689 2,940 3,236 6,605 9,208 10)Foreign currency transaction loss (gain), net (38) (58) (153) 54 (341) Total Expenses 206,284 192,564 204,399 246,755 214,813 Operating Income 31,842 43,993 25,224 21,686 36,978 Equity in Net Income (Loss) of Affiliates 6,263 (9,072) 962 3,819 7,376 Gains (Losses) on Sales of Subsidiaries and Affiliates and Liquidation Losses, Net (184) 2,527 1,187 (213) 3,113 Income before Income Taxes and Discontinued Operations 37,921 37,448 27,373 25,292 47,467 Provision for Income Taxes 14,998 14,517 3,740 11,517 12,648 Income from Continuing Operations 22,923 22,931 23,633 13,775 34,819 Discontinued Operations, Net of Applicable Tax Effect 1,253 (307) (1,103) 2,796 1,128 Net Income 24,176 22,624 22,530 16,571 35,947 Net Income (Loss) Attributable to Noncontrolling Interests 139 702 62 (1,235) 476 Net Income Attributable to Redeemable Noncontrolling Interests 800 465 522 937 698 Net Income Attributable to ORIX Corporation 23,237 21,457 21,946 16,869 34,773 *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. *Prior-year amounts have been adjusted for the retrospective adoption of Accounting Standards Update 2010-26 ( Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts ASC 944 ( Financial Services Insurance )) on April 1, 2012. Yields on Assets 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Japan 4.2% 4.4% 4.4% 4.2% 4.9% Overseas 9.3% 9.9% 9.5% 8.9% 9.7% *Yields above are related to Direct Financing Leases and Installment Loans. Reclassification of discontinued operations is not reflected on the Yields on Assets above. Yield on Assets are presented on an adjusted basis, which excludes the effect of consolidating certain assets and liabilities attributable to consolidated VIEs and our adoption of the Accounting Standards Update 2009-17 (ASC810 ( Consolidation )). For a presentation of the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP and a quantitative reconciliation of the U.S. GAAP and Non-GAAP financial measures, please see page 12. 7
Funding 2011.6 2011.9 2011.12 2012.3 2012.6 Short-Term Debt Borrowings from Financial Institutions 262,289 221,267 263,241 275,580 264,391 Notes * - - 1,819 1,955 1,856 Commercial Paper * 171,324 172,475 202,061 180,438 208,661 Total Short-Term Debt 433,613 393,742 467,121 457,973 474,908 Long-Term Debt Borrowings from Financial Institutions 2,002,372 1,930,783 1,962,901 2,001,727 1,985,386 Bonds * 1,392,554 1,370,107 1,256,372 1,330,137 1,290,228 Medium-Term Notes * 86,344 82,658 70,157 60,911 56,942 Asset-Backed Securities, Commercial Mortgage Backed Securities * 973,849 889,712 883,093 874,705 769,721 Total Long-Term Debt 4,455,119 4,273,260 4,172,523 4,267,480 4,102,277 Short-Term Debt+Long-Term Debt 4,888,732 4,667,002 4,639,644 4,725,453 4,577,185 Deposits 1,024,457 1,061,421 1,063,667 1,103,514 1,095,945 Total Debt 5,913,189 5,728,423 5,703,311 5,828,967 5,673,130 *Note: As used here, direct funding includes items indicated by the "*" mark. Share of Long-Term Debt 2011.6 2011.9 2011.12 2012.3 2012.6 Share of Long-Term Debt ( Including ABS, CMBS) *1 91% 92% 90% 90% 90% Share of Long-Term Debt ( Excluding ABS, CMBS) *1 *2 89% 90% 88% 88% 88% (*1) Note: Share of long-term debt refers to long-term debt divided by the total of short- and long-term debt. Funding Structure 2011.6 2011.9 2011.12 2012.3 2012.6 Including ABS, CMBS Borrowings from Financial Institutions 38% 38% 39% 39% 40% Funding from Capital Markets 45% 44% 42% 42% 41% Deposits 17% 18% 19% 19% 19% Excluding ABS, CMBS*2 Borrowings from Financial Institutions 46% 44% 46% 46% 46% Funding from Capital Markets 33% 34% 32% 32% 32% Deposits 21% 22% 22% 22% 22% (*2) For a presentation of the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP and a quantitative reconciliation of the U.S. GAAP and Non-GAAP financial measures, please see page 11. Funding costs (including Deposits) 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Domestic Currency 1.3% 1.3% 1.2% 1.1% 1.1% Foreign Currency 3.5% 3.6% 3.7% 3.9% 3.9% *Reclassification of discontinued operations is not reflected on the funding costs above. Funding costs are presented on an adjusted basis, which excludes the effect of consolidating certain assets and liabilities attributable to consolidated VIEs and our adoption of the Accounting Standards Update 2009-17 (ASC810 ( Consolidation )). For a presentation of the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP and a quantitative reconciliation of the U.S. GAAP and Non-GAAP financial measures, please see page 12. Commitment Lines 2011.6 2011.9 2011.12 2012.3 2012.6 Credit Lines 453,300 439,532 436,273 463,969 461,720 Available Credit 409,810 406,810 389,186 427,435 434,115 Credit Ratings 2011.6 2011.9 2011.12 2012.3 2012.6 R&I Short-Term Debt (CP) a-1 a-1 a-1 a-1 a-1 Long-Term Debt A A A A A S&P Long-Term Debt A- A- A- A- A- Moody's Long-Term Debt A3 A3 A3 A3 Baa2 8
Investment in Direct Financing Leases 2011.6 2011.9 2011.12 2012.3 2012.6 Transportation Equipment 294,810 286,934 298,108 318,364 315,411 Industrial Equipment 119,544 118,515 119,561 133,667 141,781 Electronics 123,245 125,013 130,769 135,294 136,841 Information-Related and Office Equipment 77,232 77,627 78,602 85,060 82,953 Commercial Services Equipment 56,604 59,981 61,868 62,339 63,281 Others 150,800 145,455 150,722 166,162 165,286 Total 822,235 813,525 839,630 900,886 905,553 Installment Loans by Region and Loan Type 2011.6 2011.9 2011.12 2012.3 2012.6 Consumer Borrowers in Japan: Housing Loans 829,182 832,237 843,850 864,764 882,500 Card Loan 0 0 0 236 222,115 Others 14,492 14,757 14,077 13,590 27,288 Subtotal 843,674 846,994 857,927 878,590 1,131,903 Corporate Borrowers in Japan: Real Estate Companies 316,941 313,780 301,493 297,562 290,746 Non-recourse Loans 297,843 278,091 258,050 226,887 179,234 Commercial, Industrial and Other Companies 494,610 496,503 488,272 503,454 487,232 Subtotal 1,109,394 1,088,374 1,047,815 1,027,903 957,212 Overseas: Non-recourse Loans 605,098 538,651 535,737 549,326 502,623 Others 199,179 182,801 198,823 216,520 200,629 Subtotal 804,277 721,452 734,560 765,846 703,252 Purchased loans 107,422 103,197 100,795 97,559 87,346 Total 2,864,767 2,760,017 2,741,097 2,769,898 2,879,713 Asset Quality 2011.6 2011.9 2011.12 2012.3 2012.6 90+ Days Past-Due Direct Financing Leases 23,137 22,094 20,120 17,441 17,088 Japan 18,844 18,258 17,215 14,406 14,462 Overseas 4,293 3,836 2,905 3,035 2,626 90+ Days Past-Due Loans Not Individually Evaluated for Impairment 10,310 9,179 8,770 8,604 9,332 Loans Individually Evaluated for Impairment 295,513 295,129 281,957 293,774 285,396 Effect of Accounting Changes 44,554 37,437 35,398 58,029 58,233 Impaired Loans Requiring Valuation Allowance 230,268 213,320 201,541 218,938 210,639 Effect of Accounting Changes 41,784 35,621 33,170 34,494 39,193 Valuation Allowance 91,849 88,148 85,721 91,407 82,338 Effect of Accounting Changes 18,236 15,561 14,483 15,267 15,088 Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Beginning Balance 154,150 146,903 139,134 131,538 136,588 Direct Financing Leases 21,201 20,350 18,811 17,184 16,852 Loans Not Individually Evaluated for Impairment 35,626 34,704 32,175 28,633 28,329 Loans Individually Evaluated for Impairment 97,323 91,849 88,148 85,721 91,407 Provisions Charged to Income 3,513 5,274 (529) 10,957 1,214 Direct Financing Leases 614 489 542 923 328 Loans Not Individually Evaluated for Impairment (629) (607) (3,519) (194) (38) Loans Individually Evaluated for Impairment 3,528 5,392 2,448 10,228 924 Charge-offs, Net of Recoveries (9,847) (11,051) (7,565) (7,796) (9,672) Direct Financing Leases (1,359) (1,621) (2,245) (1,558) (811) Loans Not Individually Evaluated for Impairment (121) (1,270) (139) (660) (121) Loans Individually Evaluated for Impairment (8,367) (8,160) (5,181) (5,578) (8,740) Other* (913) (1,992) 498 1,889 (444) Direct Financing Leases (106) (407) 76 303 301 Loans Not Individually Evaluated for Impairment (172) (652) 116 550 508 Loans Individually Evaluated for Impairment (635) (933) 306 1,036 (1,253) Ending Balance 146,903 139,134 131,538 136,588 127,686 Direct Financing Leases 20,350 18,811 17,184 16,852 16,670 Loans Not Individually Evaluated for Impairment 34,704 32,175 28,633 28,329 28,678 Loans Individually Evaluated for Impairment 91,849 88,148 85,721 91,407 82,338 *Other includes foreign currency translation adjustments, reclassification of discontinued operations and decrease in allowance related to sales of subsidiaries. Investment in Operating Leases 2011.6 2011.9 2011.12 2012.3 2012.6 Transportation Equipment 408,991 389,759 404,842 412,471 420,197 Measuring and Information-Related Equipment 57,518 60,499 64,442 69,655 72,215 Real Estate 838,591 808,824 776,246 802,063 804,044 Others 5,287 3,993 3,611 3,855 3,604 Accrued Rental Receivables 15,730 15,889 20,963 21,954 21,219 Total 1,326,117 1,278,964 1,270,104 1,309,998 1,321,279 9
Investment in Securities 2011.6 2011.9 2011.12 2012.03 2012.6 Trading Securities 50,356 35,922 33,818 12,817 29,079 Available-for-Sale Securities Government bond securities and municipal bond securities 241,169 222,404 232,126 278,274 269,101 Corporate debt securities 249,987 289,950 306,217 280,222 253,362 Equity securities 84,002 71,364 71,666 85,101 70,090 CMBS and RMBS in the US 33,437 28,903 31,713 31,024 27,545 Specified bonds issued by SPEs 196,271 180,191 162,396 139,152 119,851 Others 61,394 82,762 76,464 72,714 70,963 Subtotal 866,260 875,574 880,582 886,487 810,912 Held to Maturity Securities 43,686 43,677 43,667 43,830 47,210 Other Securities 203,508 212,199 209,653 204,256 201,856 Total 1,163,810 1,167,372 1,167,720 1,147,390 1,089,057 Unrealized Gains (Losses) 2011.6 2011.9 2011.12 2012.03 2012.6 Trading Securities - - - - - Available-for-Sale Securities Government bond securities and municipal bond securities 1,002 1,505 1,860 2,437 3,235 Corporate debt securities (924) (534) (1,755) (318) 913 Equity securities 21,264 10,480 12,305 23,328 18,333 CMBS and RMBS in the US (1,433) (1,579) (913) (387) (275) Specified bonds issued by SPEs (1,271) (944) 10 (902) (680) Others 297 460 28 376 726 Subtotal 18,935 9,388 11,535 24,534 22,252 Held-to-maturity Securities - - - - - Other Securities 289 261 319 1,007 1,463 Total 19,224 9,649 11,854 25,541 23,715 Realized Gains (Losses) on Investment Securities 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Trading Securities 2,963 2,386 1,279 2,696 778 Available-for-Sale Securities Government bond securities and municipal bond securities 31 101 52 134 73 Corporate debt securities 100 84-15 142 Equity securities (909) 4,968 (115) (510) (49) CMBS and RMBS in the US 145 (25) (133) (258) 1 Specified bonds issued by SPEs (69) (2,136) (1,672) 248 (337) Others 337 43 429 (411) 4 Subtotal (365) 3,035 (1,439) (782) (166) Held to Maturity Securities - - - - - Other Securities (864) 2,754 (3,378) (2,287) (5,822) Total 1,734 8,175 (3,538) (373) (5,210) *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. Reclassification of discontinued operations is not reflected on the Realized Gains (Losses) on Investment Securities above. 10
Non-GAAP Financial Measures These materials contain certain financial measures presented on a basis not in accordance with U.S. GAAP(commonly referred to as Non-GAAP financial measures), including long-term debt, ORIX Corporation shareholders equity and total assets, as well as other measures or ratios calculated based on these measures, presented on an adjusted basis. The adjustment excludes payables under securitized leases, loan receivables and investment in securities and reverses the cumulative effect on retained earnings of applying the new accounting standards for the consolidation of VIEs, effective April 1, 2010. Our management believes these Non-GAAP financial measures provide investors with additional meaningful comparisons between our financial condition as of June 30, 2012, as compared to prior periods. Effective April 1, 2010, we adopted ASU 2009-16 and ASU 2009-17, which changed the circumstances under which we are required to consolidate certain VIEs. Our adoption of these new accounting standards caused a significant increase in our consolidated assets and liabilities and a decrease in our retained earnings without affecting the net cash flow and economic effects of our investments in such consolidated VIEs. Accordingly, our management believes that providing certain financial measures that exclude assets and liabilities attributable to consolidated VIEs as a supplement to financial information calculated in accordance with U.S. GAAP enhances the overall picture of our current financial position and enables investors to evaluate our historical financial and business trends without the large balance sheet fluctuation caused by our adoption of these new accounting standards. We provide these Non-GAAP financial measures as supplemental information to our consolidated financial statements prepared in accordance with U.S. GAAP, and they should not be considered in isolation or as a substitute for the most directly comparable U.S. GAAP measures. The tables set forth below provide reconciliations of these Non-GAAP financial measures to the most directly comparable financial measures presented in accordance with U.S. GAAP as reflected in our consolidated financial statements for the periods provided. Key Ratios, Per Share Data 2011.6 2011.9 2011.12 2012.3 2012.6 Total Assets (a) 8,399,843 8,234,545 8,173,257 8,332,830 8,177,457 Deduct: Payables under Securitized Leases, Loan Receivables and Investment in Securities *1 973,849 889,712 883,093 874,705 769,721 Adjusted Total Assets (b) 7,425,994 7,344,833 7,290,164 7,458,125 7,407,736 Short-Term Debt 433,613 393,742 467,121 457,973 474,908 Long-Term Debt (c) 4,455,119 4,273,260 4,172,523 4,267,480 4,102,277 Deduct: Payables under Securitized Leases, Loan Receivables and Investment in Securities *2 973,849 889,712 883,093 874,705 769,721 Adjusted Long-Term Debt (d) 3,481,270 3,383,548 3,289,430 3,392,775 3,332,556 Long- and Short-Term Debt (excluding deposit) (e) 4,888,732 4,667,002 4,639,644 4,725,453 4,577,185 Adjusted Long- and Short-Term Debt (excluding deposit) (f) 3,914,883 3,777,290 3,756,551 3,850,748 3,807,464 ORIX Corporation Shareholders' Equity (g) 1,314,808 1,316,874 1,342,689 1,380,736 1,389,372 Deduct: The Cumulative Effect on Retained Earnings of Applying the New Accounting Standards for the Consolidation of VIEs under ASU 2009-16 and ASU 2009-17, Effective April 1, 2010*3 (21,397) (20,880) (20,055) (19,248) (18,689) Adjusted ORIX Corporation Shareholders' Equity (h) 1,336,205 1,337,754 1,362,744 1,399,984 1,408,061 ORIX Corporation Shareholders' Equity Ratio (g)/(a) 15.7% 16.0% 16.4% 16.6% 17.0% Adjusted ORIX Corporation Shareholders' Equity Ratio (h)/(b) 18.0% 18.2% 18.7% 18.8% 19.0% D/E Ratio (times) (e)/(g) 3.7 3.5 3.5 3.4 3.3 Adjusted D/E Ratio (times) (f)/(h) 2.9 2.8 2.8 2.8 2.7 Long-Term Debt Ratio (c)/(e) 91% 92% 90% 90% 90% Adjusted Long-Term Debt ratio (d)/(f) 89% 90% 88% 88% 88% (*1) Deducted payable under securitized leases, loan receivables and investment in securities recorded in Long-Term Debt for securitization from Total Assets. (*2) Deducted payable under securitized leases, loan receivables and investment in securities recorded in Long-Term Debt for securitization from Long-Term Debt. (*3) The cumulative effect on retained earnings of applying the new accounting standards of the consolidation of VIEs for securitization under ASU 2009-16 and ASU 2009-17, effective April 1, 2010. 11
Funding Costs (including Deposits) 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Interest Domestic Currency (i) 14,757 14,454 13,924 12,480 13,222 Deduct: Effect of the Application of the New Accounting Standards*4 895 957 900 925 985 Adjusted Domestic Currency Total (j) 13,862 13,497 13,024 11,555 12,237 Foreign Currency (k) 14,752 13,638 13,582 13,949 14,258 Deduct: Effect of the Application of the New Accounting Standards*4 8,663 7,707 7,275 6,980 7,120 Adjusted Foreign Currency Total (l) 6,089 5,931 6,307 6,969 7,138 Short- and Long-term Debt and Deposits (Average Balance) Domestic Currency (m) 4,682,423 4,577,140 4,491,430 4,497,069 4,515,864 Deduct: Effect of the Application of the New Accounting Standards*5 269,849 283,382 282,974 279,188 251,724 Adjusted Domestic Currency Total (n) 4,412,574 4,293,758 4,208,456 4,217,881 4,264,140 Foreign Currency (o) 1,307,857 1,213,642 1,208,825 1,242,448 1,233,242 Deduct: Effect of the Application of the New Accounting Standards*5 605,923 556,574 526,473 523,764 508,514 Adjusted Foreign Currency Total (p) 701,934 657,068 682,352 718,684 724,728 Funding Costs Domestic Currency (i)/(m) 1.3% 1.3% 1.2% 1.1% 1.2% Foreign Currency (k)/(o) 4.5% 4.5% 4.5% 4.5% 4.6% Adjusted Funding Costs Domestic Currency (j)/(n) 1.3% 1.3% 1.2% 1.1% 1.1% Foreign Currency (l)/(p) 3.5% 3.6% 3.7% 3.9% 3.9% (*4) Interest expense related to payable under securitized leases, loan receivables and investment in securities recorded in long-term debt of consolidated VIEs for securitization related to the application of ASU 2009-16 and ASU 2009-17. (*5) Payable under securitized leases, loan receivables and investment in securities recorded in long-term debt of consolidated VIEs for securitization related to the application of ASU 2009-16 and ASU 2009-17. Yields on Assets 2011.4-6 2011.7-9 2011.10-12 2012.1-3 2012.4-6 Interest Japan (q) 27,242 28,203 27,649 26,713 30,441 Deduct: Effect of the Application of the New Accounting Standards*6 1,546 1,476 1,461 1,424 1,460 Adjusted Japan Total (r) 25,696 26,727 26,188 25,289 28,981 Overseas (s) 19,117 18,973 18,391 17,807 18,636 Deduct: Effect of the Application of the New Accounting Standards*6 9,262 9,058 8,848 8,005 7,670 Adjusted Overseas Total (t) 9,855 9,915 9,543 9,802 10,966 Assets (Average Balance) Japan*7 (u) 2,715,195 2,671,093 2,649,713 2,654,429 2,643,701 Deduct: Effect of the Application of the New Accounting Standards*8 254,366 255,440 265,604 269,170 254,156 Adjusted Japan Total (v) 2,460,829 2,415,653 2,384,109 2,385,259 2,389,545 Overseas (w) 1,035,315 959,180 927,422 971,327 967,407 Deduct: Effect of the Application of the New Accounting Standards*8 613,436 560,286 527,489 530,647 514,014 Adjusted Overseas Total (x) 421,879 398,894 399,933 440,680 453,393 Yields on Assets Japan (q)/(u) 4.0% 4.2% 4.2% 4.0% 4.6% Overseas (s)/(w) 7.4% 7.9% 7.9% 7.3% 7.7% Adjusted Yields on Assets Japan (r)/(v) 4.2% 4.4% 4.4% 4.2% 4.9% Overseas (t)/(x) 9.3% 9.9% 9.5% 8.9% 9.7% (*6) Interest income of the new consolidated VIEs for securitization related to the application of ASU 2009-16 and ASU 2009-17. (*7)Assets (Average Balance) of 2012.4-6 is computed by deducting the influence of the ORIX Credit which newly became a Consolidated subsidiary in June, 2012. (*8) Payable under securitized leases, loan receivables and investment in securities recorded in long-term debt of consolidated VIEs for securitization 12