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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2022
Commission File Number: 001-14856
ORIX Corporation
(Translation of Registrant’s Name into English)
World Trade Center Bldg., SOUTH TOWER, 2-4-1 Hamamatsu-cho, Minato-ku, Tokyo, JAPAN
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ORIX Corporation | ||||
Date : November 7, 2022 | By | /s/ Hitomaro Yano | ||
Hitomaro Yano | ||||
Executive Officer Head of Treasury and Accounting Headquarters |
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Consolidated Financial Results
April 1, 2022 – September 30, 2022
November 7, 2022
In preparing its consolidated financial information, ORIX Corporation (the “Company”) and its subsidiaries have complied with generally accepted accounting principles in the United States of America.
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 forward-looking 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.
The Company believes that it may have been a “passive foreign investment company” for U.S. federal income tax purposes in the year to which these consolidated financial results relate by reason of the composition of its assets and the nature of its income. In addition, the Company may be a PFIC for the foreseeable future. Assuming that the Company is a PFIC, a U.S. holder of the shares or ADSs of the Company will be 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.
For further information please contact:
Investor Relations and Sustainability Department
ORIX Corporation
World Trade Center Bldg., SOUTH TOWER, 2-4-1 Hamamatsu-cho, Minato-Ku,
Tokyo, 105-5135
JAPAN
Tel: +81-3-3435-3121 Fax: +81-3-3435-3154
E-mail: orix_corpcomm@orix.jp
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Consolidated Financial Results from April 1, 2022 to September 30, 2022
(U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries)
Corporate Name: | ORIX Corporation | |
Listed Exchanges: | Tokyo Stock Exchange (Securities No. 8591) | |
New York Stock Exchange (Trading Symbol: IX) | ||
Head Office: | Tokyo JAPAN | |
Tel: +81-3-3435-3121 | ||
(URL https://www.orix.co.jp/grp/en/ir/) |
1. Performance Highlights as of and for the Six Months Ended September 30, 2022
(1) Performance Highlights - Operating Results (Unaudited)
(millions of yen)*1
Total Revenues | Year-on-Year Change | Operating Income | Year-on-Year Change | Income before Income Taxes | Year-on-Year Change | Net Income Attributable to ORIX Corporation Shareholders | Year-on-Year Change | |||||||||||||||||||||||||
September 30, 2022 | 1,364,816 | 9.9 | % | 149,133 | (28.6 | %) | 164,346 | (25.6 | %) | 121,776 | (17.0 | %) | ||||||||||||||||||||
September 30, 2021 | 1,241,534 | 14.5 | % | 208,917 | 74.3 | % | 220,789 | 64.6 | % | 146,682 | 56.3 | % |
“Comprehensive Income Attributable to ORIX Corporation Shareholders” was ¥171,831 million for the six months ended September 30, 2022 (year-on-year change was a 0.2% increase) and ¥171,510 million for the six months ended September 30, 2021 (year-on-year change was a 94.7% increase).
Basic Earnings Per Share | Diluted Earnings Per Share | |||||||
September 30, 2022 | 102.52 | 102.40 | ||||||
September 30, 2021 | 121.12 | 121.00 |
*Note 1: | Unless otherwise stated, all amounts shown herein are in millions of Japanese yen, except for Per Share and dividend amounts, which are in single yen. |
(2) Performance Highlights - Financial Position (Unaudited)
Total Assets | Total Equity | Shareholders’ Equity | Shareholders’ Equity Ratio | |||||||||||||
September 30, 2022 | 14,786,006 | 3,451,221 | 3,344,812 | 22.6 | % | |||||||||||
March 31, 2022 | 14,270,672 | 3,371,401 | 3,261,419 | 22.9 | % |
*Note 2: | “Shareholders’ Equity” refers to “Total ORIX Corporation Shareholders’ Equity.” |
“Shareholders’ Equity Ratio” is the ratio of “Total ORIX Corporation Shareholders’ Equity” to “Total Assets.”
2. Dividends (Unaudited)
First Quarter-end | Second Quarter-end | Third Quarter-end | Year-end | Total | ||||||||||||||||
March 31, 2022 | — | 39.00 | — | 46.60 | 85.60 | |||||||||||||||
March 31, 2023 | — | 42.80 | — | — | — | |||||||||||||||
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March 31, 2023 (Est.) | — | — | — | 42.80 | 85.60 |
3. Forecast for the Year Ending March 31, 2023 (Unaudited)
Net Income Attributable to ORIX Corporation Shareholders | Year-on-Year Change | |||||||
March 31, 2023 | 250,000 | (19.9 | %) |
*Note 3: | For details, please refer to “Outlook and Forecast” on page 8 of the attachment. |
4. Other Information
(1) Changes in Significant Consolidated Subsidiaries | Yes ( ) No ( x ) | |||
Addition - None ( ) | Exclusion - None ( ) | |||
(2) Adoption of Simplified Accounting Method | Yes ( ) No ( x ) | |||
(3) Changes in Accounting Principles, Procedures and Disclosures |
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1. Changes due to adoption of new accounting standards | Yes ( ) No ( x ) | |||
2. Other than those above | Yes ( ) No ( x ) |
(4) Number of Issued Shares (Ordinary Shares)
1. The number of issued shares, including treasury stock, was 1,258,277,087 as of September 30, 2022, and 1,258,277,087 as of March 31, 2022.
2. The number of treasury stock was 76,368,512 as of September 30, 2022, and 62,914,027 as of March 31, 2022.
3. The average number of outstanding shares was 1,187,884,502 for the six months ended September 30, 2022, and 1,211,057,955 for the six months ended September 30, 2021.
The Company’s shares held through the Board Incentive Plan Trust (2,849,782 shares as of September 30, 2022 and 1,963,282 shares as of March 31, 2022) are not included in the number of treasury stock as of the end of the periods, but are included in the average number of shares outstanding as treasury stock that are deducted from the basis of the calculation of per share data.
* These consolidated financial results from April 1, 2022 to September 30, 2022 are not subject to certified public accountant’s or audit firm’s quarterly review.
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1. Summary of Consolidated Financial Results
(1) Financial Highlights
Financial Results for the Six Months Ended September 30, 2022
Six months ended September 30, 2021 | Six months ended September 30, 2022 | Change | ||||||||||||||||
Amount | Percent | |||||||||||||||||
Total Revenues | (millions of yen) | 1,241,534 | 1,364,816 | 123,282 | 10 | % | ||||||||||||
Total Expenses | (millions of yen) | 1,032,617 | 1,215,683 | 183,066 | 18 | % | ||||||||||||
Income before Income Taxes | (millions of yen) | 220,789 | 164,346 | (56,443 | ) | (26 | )% | |||||||||||
Net Income Attributable to ORIX Corporation Shareholders | (millions of yen) | 146,682 | 121,776 | (24,906 | ) | (17 | )% | |||||||||||
Earnings Per Share (Basic) | (yen) | 121.12 | 102.52 | (18.60 | ) | (15 | )% | |||||||||||
(Diluted) | (yen) | 121.00 | 102.40 | (18.60 | ) | (15 | )% | |||||||||||
ROE (Annualized)*1 | (%) | 9.5 | 7.4 | (2.1 | ) | — | ||||||||||||
ROA (Annualized)*2 | (%) | 2.14 | 1.68 | (0.46 | ) | — |
*Note 1: | ROE is the ratio of Net Income Attributable to ORIX Corporation Shareholders for the period to average ORIX Corporation Shareholders’ Equity. |
*Note 2: | ROA is calculated based on Net Income Attributable to ORIX Corporation Shareholders. |
Overview of Business Performance (April 1, 2022 to September 30, 2022)
Total revenues for the six months ended September 30, 2022 (hereinafter, “the second consolidated period”) increased 10% to ¥1,364,816 million compared to ¥1,241,534 million during the same period of the previous fiscal year due to increases in services income, sales of goods and real estate and life insurance premiums and related investment income despite a decrease in gains (losses) on investment securities and dividends.
Total expenses increased 18% to ¥1,215,683 million compared to ¥1,032,617 million during the same period of the previous fiscal year due to increases in life insurance costs, services expense and costs of goods and real estate sold.
Equity in net income (loss) of affiliates increased 23% to ¥6,624 million compared to ¥5,399 million and gains on sales of subsidiaries and affiliates and liquidation losses, net increased 33% to ¥8,589 million compared to ¥6,473 million during the same period of the previous fiscal year.
Due to the above results, income before income taxes for the second consolidated period decreased 26% to ¥164,346 million compared to ¥220,789 million during the same period of the previous fiscal year and net income attributable to ORIX Corporation shareholders decreased 17% to ¥121,776 million compared to ¥146,682 million during the same period of the previous fiscal year.
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Segment Information
Total segment profits for the second consolidated period decreased 26% to ¥169,952 million compared to the same period of the previous fiscal year.
Since April 1, 2022, a portion of interest expenses and a portion of selling, general and administrative expenses, which were initially included in the difference between segment total profits and consolidated amounts, have been charged directly to their respective segments. As a result of these changes, segment data for the six months ended September 30, 2021 has been retrospectively restated.
Segment information for the second consolidated period is as follows:
Corporate Financial Services and Maintenance Leasing: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 46,263 | 35,482 | (10,781) | (23) | ||||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 1,516,795 | 1,476,243 | (40,552) | (3) |
Segment profits decreased 23% to ¥35,482 million compared to the same period of the previous fiscal year due to the absence of gains on investment securities and dividends resulting from the listing of an investee recorded in the same period of the previous fiscal year, and a decrease in services income resulting from the sale of the business of Yayoi Co., Ltd. in the three months ended March 31, 2022.
Segment assets decreased 3% to ¥1,476,243 million compared to the end of the previous fiscal year due to decreases in net investment in leases and installment loans.
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Real Estate: Real estate development, rental and management; facility operations; real estate asset management
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 23,031 | 18,949 | (4,082 | ) | (18) | |||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 910,101 | �� 907,859 | (2,242 | ) | (0) |
Segment profits decreased 18% to ¥18,949 million compared to the same period of the previous fiscal year. This decrease was due to a decrease in operating leases revenues resulting from sales of real estate under operating leases, and a decrease in sales of goods and real estate at DAIKYO INCORPORATED and its subsidiaries, partially offset by an increase in services income from operating facilities.
Segment assets totaled ¥907,859 million, remaining relatively unchanged compared to the end of the previous fiscal year due to a decrease in investment in operating leases, despite an increase in inventories.
PE Investment and Concession: Private equity investment; concession
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 1,614 | 3,905 | 2,291 | 142 | ||||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 353,581 | 370,091 | 16,510 | 5 |
Segment profits increased 142% to ¥3,905 million compared to the same period of the previous fiscal year due to a decrease in equity in net loss of affiliates at our three airports in Kansai in our concession business.
Segment assets increased 5% to ¥370,091 million compared to the end of the previous fiscal year due to an increase in investment securities, goodwill and intangible assets acquired in business combinations resulting from the acquisition of a subsidiary, despite a decrease in property under facility operations at a certain investee.
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Environment and Energy: Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels and battery energy storage system; recycling and waste management
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 9,502 | 10,582 | 1,080 | 11 | ||||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 703,608 | 772,944 | 69,336 | 10 |
Segment profits increased 11% to ¥10,582 million compared to the same period of the previous fiscal year due to a profit contribution from a renewable energy business subsidiary in Spain.
Segment assets increased 10% to ¥772,944 million compared to the end of the previous fiscal year due to increases in investment in affiliates, advances for property under facility operations, and property under facility operations, primarily resulting from foreign exchange effects.
Insurance: Life insurance
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 32,322 | 13,007 | (19,315 | ) | (60 | ) | ||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 2,072,145 | 2,052,684 | (19,461 | ) | (1 | ) |
Segment profits decreased 60% to ¥13,007 million compared to the same period of the previous fiscal year due to an increase in life insurance costs as a result of increased payouts to policy holders, despite an increase in life insurance premiums and related investment income in line with an increase in insurance contracts.
Segment assets decreased 1% to ¥2,052,684 million compared to the end of the previous fiscal year due to decrease in investment in securities.
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Banking and Credit: Banking; consumer finance
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 20,909 | 15,215 | (5,694 | ) | (27 | ) | ||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 2,687,156 | 2,677,388 | (9,768 | ) | (0 | ) |
Segment profits decreased 27% to ¥15,215 million compared to the same period of the previous fiscal year due to the absence of gains on investment securities and dividends at ORIX Bank Corporation recorded in the same period of the previous fiscal year, and an increase in advertising expenses at ORIX Credit Corporation recorded in the consolidated cumulative second quarter.
Segment assets totaled ¥2,677,388 million, remaining relatively unchanged compared to the end of the previous fiscal year.
Aircraft and Ships: Aircraft investment and management; ship-related finance and investment
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 369 | 10,649 | 10,280 | — | ||||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 684,098 | 752,565 | 68,467 | 10 |
Segment profits increased by ¥10,280 million to ¥10,649 million as compared to ¥369 million of segment profits in the same period of the previous fiscal year due to an increase in equity in net income (loss) of affiliates at Avolon Holdings Limited, and an increase in operating leases revenues in our ship-related businesses and aircraft-related business.
Segment assets increased 10% to ¥752,565 million compared to the end of the previous fiscal year due to an increase in investment in affiliates, primarily resulting from foreign exchange effects.
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ORIX USA: Finance, investment and asset management in the Americas
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 47,094 | 21,596 | (25,498 | ) | (54 | ) | ||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 1,364,142 | 1,624,316 | 260,174 | 19 |
Segment profits decreased 54% to ¥21,596 million compared to the same period of the previous fiscal year, primarily due to the absence of gains on investment securities and dividends resulting from the sales of investees recorded in the same period of the previous fiscal year.
Segment assets increased 19% to ¥1,624,316 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects.
ORIX Europe: Asset management of global equity and fixed income
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 28,458 | 16,419 | (12,039 | ) | (42 | ) | ||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 401,869 | 409,463 | 7,594 | 2 |
Segment profits decreased 42% to ¥16,419 million compared to the same period of the previous fiscal year due to a decrease in services income due to a decrease in the average amount of assets under management ,and a decrease in gains on investment securities and dividends resulting from weaker market conditions.
Segment assets increased 2% to ¥409,463 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects, despite a decrease in investment in securities.
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Asia and Australia: Finance and investment businesses in Asia and Australia
Six months ended September 30, 2021 (millions of yen) | Six months ended September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Profits | 19,942 | 24,148 | 4,206 | 21 | ||||||||||||
As of March 31, 2022 (millions of yen) | As of September 30, 2022 (millions of yen) | Change | ||||||||||||||
Amount (millions of yen) | Percent (%) | |||||||||||||||
Segment Assets | 1,306,089 | 1,399,094 | 93,005 | 7 |
Segment profits increased 21% to ¥24,148 million compared to the same period of the previous fiscal year due to an increase in operating leases revenues in South Korea and Australia, partially offset by a decrease in gains on investment securities and dividends.
Segment assets increased 7% to ¥1,399,094 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects, despite a decrease in installment loans in Greater China.
Outlook and Forecast
It is difficult to predict the future business environment due to the prolonged spread of COVID-19, Russia-Ukraine crisis, global inflationary pressure, monetary tightening by the United States and Europe, and concerns about economic deterioration in various countries. Based on the results of the first half of the year, we have disclosed the full-year forecast based on the currently available information regarding the business activities of each segment in the second half of the year.
Although forward-looking statements in this document are attributable to current information available to us and are based on assumptions deemed reasonable by us, actual financial results may differ materially due to various factors. Readers are urged not to place undue reliance on such forward-looking statements.
Factors that could cause results that differ materially from those described in the forward-looking statements include, but are not limited to, those described under “Risk Factors” in our Form 20-F submitted to the U.S. Securities and Exchange Commission.
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(2) Consolidated Financial Condition
Summary of Assets, Liabilities, Shareholders’ Equity
As of March 31, 2022 | As of September 30, 2022 | Change | ||||||||||||||||
Amount | Percent | |||||||||||||||||
Total Assets | (millions of yen) | 14,270,672 | 14,786,006 | 515,334 | 4 | % | ||||||||||||
(Segment Assets) | 11,999,584 | 12,442,647 | 443,063 | 4 | % | |||||||||||||
Total Liabilities | (millions of yen) | 10,899,271 | 11,333,820 | 434,549 | 4 | % | ||||||||||||
(Short-term and Long-term Debt) | 4,866,685 | 5,410,385 | 543,700 | 11 | % | |||||||||||||
(Deposits) | 2,276,158 | 2,252,295 | (23,863 | ) | (1 | )% | ||||||||||||
Shareholders’ Equity *1 | (millions of yen) | 3,261,419 | 3,344,812 | 83,393 | 3 | % | ||||||||||||
Shareholders’ Equity Per Share *2 | (yen) | 2,732.88 | 2,836.85 | 103.97 | 4 | % |
*Note 1: | Shareholders’ Equity refers to ORIX Corporation Shareholders’ Equity based on U.S. GAAP. | |
*Note 2: | Shareholders’ Equity Per Share is calculated using total ORIX Corporation Shareholders’ Equity. |
Total assets increased 4% to ¥14,786,006 million compared to the end of the previous fiscal year due to increases in other assets, installment loans and investments in affiliates, partially offset by a decrease in cash and cash equivalents. In addition, segment assets increased 4% to ¥12,442,647 million compared to the end of the previous fiscal year.
Total liabilities increased 4% to ¥11,333,820 million compared to the end of the previous fiscal year due to increases in short- and long-term debt, policy liabilities and policy account balances despite decreases in trade notes, accounts and other payable and current and deferred income taxes.
Shareholders’ equity increased 3% to ¥3,344,812 million compared to the end of the previous fiscal year.
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2. Financial Information
(1) Condensed Consolidated Balance Sheets (Unaudited)
(millions of yen)
Assets | As of March 31, 2022 | As of September 30, 2022 | ||||||||
Cash and Cash Equivalents | 954,827 | 925,965 | ||||||||
Restricted Cash | 136,985 | 120,056 | ||||||||
Net Investment in Leases | 1,057,973 | 1,082,943 | ||||||||
Installment Loans | 3,862,604 | 3,980,231 | ||||||||
The amounts which are measured at fair value by electing the fair value option are as follows: | ||||||||||
March 31, 2022 | ¥151,601 million | |||||||||
September 30, 2022 | ¥215,774 million | |||||||||
Allowance for Credit Losses | (69,459 | ) | (66,975 | ) | ||||||
Investment in Operating Leases | 1,463,202 | 1,466,487 | ||||||||
Investment in Securities | 2,852,349 | 2,911,282 | ||||||||
The amounts which are measured at fair value by electing the fair value option are as follows: | ||||||||||
March 31, 2022 | ¥19,353 million | |||||||||
September 30, 2022 | ¥25,568 million | |||||||||
The amounts which are associated to available-for-sale debt securities are as follows: | ||||||||||
March 31, 2022 | ||||||||||
Amortized Cost | ¥2,276,425 million | |||||||||
Allowance for Credit Losses | ¥(153) million | |||||||||
September 30, 2022 | ||||||||||
Amortized Cost | ¥2,514,538 million | |||||||||
Allowance for Credit Losses | ¥(172) million | |||||||||
Property under Facility Operations | 561,846 | 564,655 | ||||||||
Investment in Affiliates | 978,033 | 1,106,570 | ||||||||
Trade Notes, Accounts and Other Receivable | 359,949 | 356,894 | ||||||||
Inventories | 139,563 | 154,565 | ||||||||
Office Facilities | 240,421 | 246,380 | ||||||||
Other Assets | 1,732,379 | 1,936,953 | ||||||||
The amounts which are measured at fair value by electing the fair value option are as follows: | ||||||||||
March 31, 2022 | ¥5,214 million | |||||||||
September 30, 2022 | ¥5,702 million | |||||||||
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Total Assets | 14,270,672 | 14,786,006 | ||||||||
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Liabilities and Equity | ||||||||||
Short-term Debt | 439,639 | 461,673 | ||||||||
Deposits | 2,276,158 | 2,252,295 | ||||||||
Trade Notes, Accounts and Other Payable | 291,422 | 248,523 | ||||||||
Policy Liabilities and Policy Account Balances | 1,963,623 | 2,049,300 | ||||||||
The amounts which are measured at fair value by electing the fair value option are as follows: | ||||||||||
March 31, 2022 | ¥198,905 million | |||||||||
September 30, 2022 | ¥170,177 million | |||||||||
Current and Deferred Income Taxes | 461,181 | 315,657 | ||||||||
Long-term Debt | 4,427,046 | 4,948,712 | ||||||||
Other Liabilities | 1,040,202 | 1,057,660 | ||||||||
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Total Liabilities | 10,899,271 | 11,333,820 | ||||||||
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Redeemable Noncontrolling Interests | 0 | 965 | ||||||||
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Commitments and Contingent Liabilities | ||||||||||
Common Stock | 221,111 | 221,111 | ||||||||
Additional Paid-in Capital | 260,479 | 260,880 | ||||||||
Retained Earnings | 2,909,317 | 2,975,389 | ||||||||
Accumulated Other Comprehensive Income (Loss) | (16,041 | ) | 34,014 | |||||||
Treasury Stock, at Cost | (113,447 | ) | (146,582 | ) | ||||||
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Total ORIX Corporation Shareholders’ Equity | 3,261,419 | 3,344,812 | ||||||||
Noncontrolling Interests | 109,982 | 106,409 | ||||||||
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Total Equity | 3,371,401 | 3,451,221 | ||||||||
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Total Liabilities and Equity | 14,270,672 | 14,786,006 | ||||||||
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Note : | Breakdowns of Accumulated Other Comprehensive Income (Loss) |
As of March 31, 2022 | As of September 30, 2022 | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Net unrealized gains (losses) on investment in securities | (72,892 | ) | (216,759 | ) | ||||
Debt valuation adjustments | 221 | 281 | ||||||
Defined benefit pension plans | (8,072 | ) | (8,390 | ) | ||||
Foreign currency translation adjustments | 61,914 | 239,035 | ||||||
Net unrealized gains on derivative instruments | 2,788 | 19,847 | ||||||
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Total | (16,041 | ) | 34,014 | |||||
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(2) Condensed Consolidated Statements of Income (Unaudited)
(millions of yen)
Six months ended September 30, 2021 | Six months ended September 30, 2022 | |||||||
Revenues : | ||||||||
Finance revenues | 137,191 | 153,151 | ||||||
Gains (Losses) on investment securities and dividends | 45,744 | (746 | ) | |||||
Operating leases | 227,933 | 249,144 | ||||||
Life insurance premiums and related investment income | 232,797 | 263,211 | ||||||
Sales of goods and real estate | 230,655 | 265,020 | ||||||
Services income | 367,214 | 435,036 | ||||||
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Total Revenues | 1,241,534 | 1,364,816 | ||||||
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Expenses : | ||||||||
Interest expense | 33,432 | 51,473 | ||||||
Costs of operating leases | 159,578 | 164,841 | ||||||
Life insurance costs | 174,215 | 222,493 | ||||||
Costs of goods and real estate sold | 204,182 | 232,209 | ||||||
Services expense | 223,630 | 267,774 | ||||||
Other (income) and expense | (10,558 | ) | 6,941 | |||||
Selling, general and administrative expenses | 245,884 | 267,954 | ||||||
Provision for credit losses | 2,106 | 1,674 | ||||||
Write-downs of long-lived assets | 88 | 253 | ||||||
Write-downs of securities | 60 | 71 | ||||||
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Total Expenses | 1,032,617 | 1,215,683 | ||||||
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Operating Income | 208,917 | 149,133 | ||||||
Equity in Net Income of Affiliates | 5,399 | 6,624 | ||||||
Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net | 6,473 | 8,589 | ||||||
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Income before Income Taxes | 220,789 | 164,346 | ||||||
Provision for Income Taxes | 68,070 | 38,737 | ||||||
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Net Income | 152,719 | 125,609 | ||||||
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Net Income Attributable to the Noncontrolling Interests | 6,037 | 3,821 | ||||||
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Net Income Attributable to the Redeemable Noncontrolling Interests | 0 | 12 | ||||||
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Net Income Attributable to ORIX Corporation Shareholders | 146,682 | 121,776 | ||||||
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(3) Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(millions of yen) | ||||||||
Six months ended September 30, 2021 | Six months ended September 30, 2022 | |||||||
Net Income : | 152,719 | 125,609 | ||||||
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Other comprehensive income, net of tax: | ||||||||
Net change of unrealized gains (losses) on investment in securities | 8,320 | (143,867 | ) | |||||
Net change of debt valuation adjustments | (61 | ) | 60 | |||||
Net change of defined benefit pension plans | 149 | (316 | ) | |||||
Net change of foreign currency translation adjustments | 14,932 | 185,095 | ||||||
Net change of unrealized gains on derivative instruments | 2,170 | 18,531 | ||||||
Total other comprehensive income | 25,510 | 59,503 | ||||||
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Comprehensive Income | 178,229 | 185,112 | ||||||
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Comprehensive Income Attributable to the Noncontrolling Interests | 6,719 | 13,181 | ||||||
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Comprehensive Income Attributable to the Redeemable Noncontrolling Interests | 0 | 100 | ||||||
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Comprehensive Income Attributable to ORIX Corporation Shareholders | 171,510 | 171,831 | ||||||
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(4) Assumptions for Going Concern
There is no corresponding item.
(5) Significant Changes in Shareholders’ Equity
There is no corresponding item.
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(6) Segment Information (Unaudited)
Segment Information by Sector
(millions of yen) | ||||||||||||||||||||||||
Six Months ended September 30, 2021 | Six Months ended September 30, 2022 | March 31, 2022 | September 30, 2022 | |||||||||||||||||||||
Segment Revenues | Segment Profits | Segment Revenues | Segment Profits | Segment Assets | Segment Assets | |||||||||||||||||||
Corporate Financial Services and Maintenance Leasing | 230,275 | 46,263 | 211,427 | 35,482 | 1,516,795 | 1,476,243 | ||||||||||||||||||
Real Estate | 202,514 | 23,031 | 190,487 | 18,949 | 910,101 | 907,859 | ||||||||||||||||||
PE Investment and Concession | 192,150 | 1,614 | 250,873 | 3,905 | 353,581 | 370,091 | ||||||||||||||||||
Environment and Energy | 63,898 | 9,502 | 110,914 | 10,582 | 703,608 | 772,944 | ||||||||||||||||||
Insurance | 235,088 | 32,322 | 265,870 | 13,007 | 2,072,145 | 2,052,684 | ||||||||||||||||||
Banking and Credit | 43,097 | 20,909 | 40,944 | 15,215 | 2,687,156 | 2,677,388 | ||||||||||||||||||
Aircraft and Ships | 17,748 | 369 | 28,496 | 10,649 | 684,098 | 752,565 | ||||||||||||||||||
ORIX USA | 84,988 | 47,094 | 79,932 | 21,596 | 1,364,142 | 1,624,316 | ||||||||||||||||||
ORIX Europe | 101,104 | 28,458 | 89,836 | 16,419 | 401,869 | 409,463 | ||||||||||||||||||
Asia and Australia | 71,705 | 19,942 | 92,434 | 24,148 | 1,306,089 | 1,399,094 | ||||||||||||||||||
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Segment Total | 1,242,567 | 229,504 | 1,361,213 | 169,952 | 11,999,584 | 12,442,647 | ||||||||||||||||||
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Difference between Segment Total and Consolidated Amounts | (1,033 | ) | (8,715 | ) | 3,603 | (5,606 | ) | 2,271,088 | 2,343,359 | |||||||||||||||
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Consolidated Amounts | 1,241,534 | 220,789 | 1,364,816 | 164,346 | 14,270,672 | 14,786,006 | ||||||||||||||||||
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Note 1: | The Company evaluates the performance of segments based on income before income taxes, adjusted for net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests before applicable tax effect. Tax expenses are not included in segment profits. |
Note 2: | Since April 1, 2022, a portion of interest expenses and a portion of selling, general and administrative expenses, which were initially included in the difference between segment total profits and consolidated amounts, have been charged directly to their respective segments. As a result of these changes, segment data for the six months ended September 30, 2021 has been retrospectively restated. |
Note 3: | Inter-segment transactions are included in segment revenues, and eliminations of inter-segment transactions are included in the difference between segment total and consolidated amounts. |
(7) Subsequent Events
There are no material subsequent events.
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