IX - Earnings call transcript Q3 2022

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Operator

0:01 Good evening, ladies and gentlemen. Thank you for joining this teleconference of ORIX Corporation for the Third Quarter Consolidated Financial Results for the nine-month period ended December 31, 2021. And this conference is attended by Executive Officer, Head of Treasury and Accounting Headquarters Mr. Yano. 0:25 Before we begin, we have a request, please make sure that your mobile phone and other technician devices either turned off or kept away from the telephone in order to avoid feedback.

and we consent, feedback suspend feedback we for short if with the the with – person a organizers the the may while your you kind experienced causing during severe meeting meeting who understanding. If is to the speak have to We X:XX hear Mr. from will we Yano presentation, a session. will and then after Q&A have the And the one approximately hour. whole duration is of the meeting

start to Yano. to going the give floor we're I like meeting. Now would Mr. the to And

Hitomaro Yano

officer executive joining and of Good third afternoon. busy Yano, X:XX ORIX. March for am accounting schedule. and you quarter FYXX for your us head headquarters despite for I treasury the of end, results Thank announcement for

turn go to begin please summary to X:XX So let points slide start. over for me of key the refer know the handout. Page the to X and executive I'll just So please with. handout as usual

first The for ORIX ¥XXX.X year-over-year. income billion income net XX.X% up Annualized in months XXXX, ROE, is net December X.X%. was ROE X posted the and ended

the billion, ¥XXX On up income revised target XX.X% was net from to third billion. ¥XX.X ¥XXX up income X:XX XX, we billion December net year-over-year. quarter For full our year alone,

full achieved our of have billion. target revised We ¥XXX of XX.X% year

target therefore, sell we, to decided Although we're to in to at visibility earnings is still our billion quarter unchanged fourth capital a of ¥XXX second And point strong, and leave in year trying Yayoi but the remained lack is X:XX due income recycling. net there the COVID. The full market

replacement in efficiency aim achieve asset asset profitability at and through we know, ongoing portfolio. ORIX, to you As our higher

forward outside deals of renewable these well-timed such executed. asset including under already pipeline are we overseas energy the steadily we're an and Yayoi sales, and secured have ¥X areas trillion, moving equity investments, time, investment as same both At private announced incentives. with being have PE in We Japan within

point and have of Going The asset X through credit outlook months. forward, X ORIX their Is currently investments rated either of the in by well-balanced a third rating sales these is ROE we raised credit improve X:XX major mix and or X last aim rating. agencies, to

downgraded ORIX positive crisis and ORIX business COVID, the earnings announced to stable a of outbreak by XXXX, base appear of asset maintain fiscal a view we have In dividend last payout is this ability displayed for floor the agencies immediately quality dividend level following return. rating for Group: despite the The COVID shareholders' taken period. they point X:XX certain to set some a Although the the ratio and of now December our

income addition a net is full high. to to forecast DPS mark income billion, record exceeds In net a to the expected next if page. turn upwards Please year revision, ¥XXX

investment severely higher the and of higher by and all of profits ORIX USA, before, segment ¥XXX.X was to Q-on-Q, which the income segment. performance ¥XX.X ended This ago mentioned quarterly Real Within shows XX.X% turn of These profit. were the and expanding, Six months to owing please. ORIX to Next primarily higher assets year-over-year, Overseas we sustained to base segment to up X.X%. and dark Should segment which segment, as ROE bar both X ¥XXX.X PE segment gains, segments was year-over-year logistics XX% profits I expected the COVID XXXX. affected profit. XX% were investment continue for up sharply by impact exits blue both billion. is showing shows year-over-year X 'XX the posted to Overseas contributed. through quarter up sales, segment me strength breakdown portfolio. the ¥XXX recovery at the year Asia surpassing to has period. new fiscal with Compared X.X% show Allow is profit profit fiscal blue of is X program, posted ROE the Japan, bar also high. end right-hand COVID. and net to net bar X:XX growth. of XX.X% of Overseas base posted The ROE. pages contributed record or This plan segment Coupled the ongoing and trends. were advantage at year-over-year the X:XX annualized profits of by repurchase to profit profits into months started. when QX income ORIX ¥XXX.X of income December Segment billion. investment billion, segment reach led higher down net at third XX.X% December breakdown exception and year base Australia, just the X:XX trend with which overall and significantly and for ROE net is usual. were a multiple centers, billion, from Page be XX.X% to expected page, break of have X Europe take businesses of compared achieve a income chart rose down realized Please to USA post-COVID with X segment by the XX.X% to ago, higher profits was a and to are As to billion. XXXX total light segments The to QX on investment X:XX generate We Estate ¥XXX.X Net businesses, ended profits years gains. just billion. loses XX.X% grown ORIX's into profits a X. ORIX's gains The minor profit market margin, chart translates but the diversified left income of The EPS Property share in strong the to a favorable investees, including gains is to and ¥XXX, their

an large acquisition Elawan. shows in assets Environment We rose the on in segment the insurance segment assets as pick growth in up Insurance policies growth and Asia businesses individual point COVID-impacted South explain business the of will this XX I information, in the while a expect led increase in X breakdown X:XX XX leasing Also, and segment The numbers of which provides China of increase Page Energy assets to Please Australia and onward normalizes. and segment briefly. time. in segment. Page turn at new gradually the to in in condition to following Korea

from Financial valuation of Corporate is and Maintenance Services first IPO remaining Financial Safie. the recorded gains Now Services on Leasing. Corporate and gains stake our investment

develop the following higher used growth a car a rental as by a expected ever profits focus both Auto this profit. on growth. X:XX planned with quarter and the Yayoi earnings, As pretax strongly on the some rates result, in on properties, Estate COVID, quarter, largest properties sales XX. booked turn we impairment price, and lease to still were in up also recovered improvement; This equipment ¥XXX is losses market margin to in terms ongoing logistics selling The December unit, and costs, Page strong led sell announced earlier in is the XG-related be Investment doubled. a the recovery fruit. We ORIX's the is billion segment. the of price rental it so. properties, profit from in Although utilization on which or contributed stake on by share led year and in to to the profit were centers an exit third equipment. to Real in then to decline have COVID and X:XX level lows. profits fourth impacted were doubled Profits compared Rentec upswing expected model Operations the and bearing Please gain as be profits large other to of sale business

facilities inns operations located close improving rates be to to in continued particularly at the by business inns COVID, the and country Although occupancy gradually, Tokyo. including hotels are impacted area

visibility Page expertise PE XX. facilities, profits repair leveraging COVID. investee working year-over-year We Group led variants the is Kobayashi losses lacking and sales Please construction COVID This Although Sawai Daikyo in and manufacturing announced by of work In to segment. year-on-year. and posted the profits Kako, strong which turn in transaction, this during doubled PE safely further orders. sale to knowledge earnings a December to spreading, on we on impairment Concession XX:XX Holdings. lower growth improve is operating and on condo year our with to we're

However, other industries are performing well. all

System, network In power solutions. to and also stake equipment of XG-related segment. APRESIA Energy manufacturer, Concession company as gains unit, for with Environment contributing international the Elawan not turn in began and earnings corporation. by Greenko Profit is growth from from a XX. energy sale profit demand ESCO from QX. of example, investment back QX is Airport group's For Page renewable to a the is supported enjoying Vietnamese This the has traffic Kansai recovered. growth the Please business red on XX:XX still in still

for segment gigawatts FYXX, by the -- X is Our at March largest And expand in capacity XXXX. renewable largest to energy of gigawatts. we this X to this plan figure at December Japan's end end

recorded former on earnings. ORIX We XX Page an segment. the fluctuates through XX:XX ORIX for goal order mail from Insurance affecting achieving profit outside are to segment depending this business Japan omnichannel including moving market operates Life projects, within segment's Life turn growth. both to sales. strategy, But and of Hartford Please steadily conditions, and Earnings Internet of excluding this, whole Life the the

well allowed growth industry the As above policies post average. XX, has this outlined on Page firm to the in

previously new have real business platform increased reversal forward. in XX force turn our absence sustained challenges. and drove strong year, the shipping Page expect as of marketing to market. of lower lockdowns. online ORIX-owned same reversals lower is despite of execution and Please posted a posted years. ORIX COVID the loans. segment fiscal but the Aircraft lines, turn period earnings are Credit credit this markets heavily Credit growth and XX on going has This was last solid. for investment Please estate Avolon's for proportion Leasing efforts earnings. profits collateral weighted The we Bank are X.X-fold earnings Ships during XX:XX Page you sharp turn OAS XX:XX of it segment. loans growing recovery year-on-year, for The to see, and the to As a uptrend, USA. in leasing, in still towards policies ships can upturn sales COVID demand of to ship revenues passenger vessels recovery XX long-string last and both Banking to aircraft an and costs but Please XX:XX The more ORIX comprising business aircraft, is further to profit nonface-to-face in the Ships. supported owing In X aided a marine utilizing have by in Page steady in led for

managing the AUM the Transtrend, end record to gains recording a addition of the also ORIX of high investment which XX, Asia the ORIX here Page surpassed coming year Nine-month at for the XX:XX funds. and driver proprietary ORIX originate USA and number these continues USA. and focused quarter asset increase booked performance already ORIX real row, in PE performed a and addition ORIX full both of Australia. firm, to like surpass Page to XXX profit X in well. segment, which assets new in profits at prior utilizing December a PE 'XX. loans for CTA business record the AUM business at addition on estate reached in previous is a the growing, helped Lument, year fees, In on to is turn months XX EUR Please growth segment third-party high year's to first to exits, sell Please in turn last Europe's Europe. in third record XX:XX earnings management fiscal and billion

COVID. experienced review from which completes earnings. This to our continued growth would leasing become relatively and about each control talk in we South As more region. like in to to was segment return asset line of China, fuelled XX:XX expansion conditions and business Korea in and COVID variants Profit with by smaller Please widespread, I page in seven. recycling. exposure impacts country capital new

We aggressively continued new into invest opportunities. to

own are environment and with segment, as we energy, development, logistics projects. forward investment focused and investments have Environment overseas, renewable on with focused with such are Within companies. centers. and trillion In energy at in Energy companies while ¥X opportunities M&A PE on moving we're We these the multiple new looking pipeline Japan, pipeline investment areas

apply Osaka future Prefecture receive business Japan approval We and considering companies government's could are 'XX. develop which to of the facility City Osaka in we Estate, as group. Prefecture looking we investment, and And mainly large for properties, MICE the group's announced ensuring PE which area utilize central the continued high development and the installation December in a for are to value-added In Real currently solar was City, aim panels expertise in at logistics U.S., our CASBEE become such center of IR a unit for accreditation. April, And plan plan. XX:XX

sales. We with forward moving are also asset

As have of sales will done already would Kako already U.S. I have we the will to like Kobayashi segments, we portfolio. Kako investment each different about in these in sales, in And and to -- the talk continue the investment balance explained about I in Kobayashi and the would of terms now. to sales the credit PE ratings like now talk continue. I

an and upgraded overall March. X quality sources rating, balance X on base, agencies JCR XX:XX and conservative sheet. that profitability the On in these steady we Moody's, view stable that and business outlook of our diversified our and S&P, high And believe Fitch ORIX's have stable positive 'XX define management FY earnings reflect them, our upgrades already asset

dividend to A While favorable upgraded surpassed This baseline billion our and thing, this. at per maintaining payout ¥XX, and also the to higher with XX:XX net XX% D/E surpasses ¥XX a control income illustrates ¥XX, dividends should share will of ’XX, if income per high income the Now, on increase. And EPS certain graph hand liquidity then ¥XXX conditions. a December hit procure we credit the and and or upward an left record net from a in will to net share ratio, ratio. financial appropriately the capital dividends funding target, continue with revised we plan rating, adequacy

right. XX would share, do you times raised very grow dividends, assuming of to per decade achievable. we would ROE This to grown to have You plan to how we move to over I'd for see remarks. the profits as ago. process. income expected ORIX my will like full volatility, of a again, next anti-COVID now And on We to situation income be that happy means unpredictable. through our and capital the net answer graph Right importance has capital is That best illustrates on we is very XX:XX billion XXX billion the and have. page. ORIX recycling, year you to consistently much like And have attention. a net our XX% net continue dividends to be there shareholders that continue utmost believe over expectations. any measures. global leading don't market And your to target, is ongoing your which other to meet stricter, asserting XX:XX to that then many concludes achieve And may ORIX efficient the are kind a predictors, to talking introducing throughout to to thank this target income remains questions return you. Thank we we First, ¥XX

Operator

XX:XX Thank Yano. very you much, Mr.

at than begin for let Q&A ready now one question, us asking more are a question not the So [Operator Please We the time. the Instructions] session. refrain from session. Q&A

UFJ voice. can is The Kaku, speaking, Hello, as of This Mr. my Please. you fact. first a hear Stanley, question Morgan I is matter hope Tsujino Mitsubishi

Hitomaro Yano

This XX:XX hear you well. I can is Yano.

sorry, incorrectly. So I'm announced name think Tsujino-san, I your was

Unidentified Analyst

XX:XX No.

method it in My exits was States, holding name is billion case a is investment, incorrectly. this ¥X.X I think know from case, fault. of registered equity that and In I any the of one this there time Tsujino, number were United your our exit.

you not So sold, sure I'm divested. what have

kind at perhaps. enough give what price to as IRR or – more you to indication could of If and so be some little you a what us detail sold

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Hitomaro Yano

the affect properties quarter in to the so much. very results sales, properties on to it Estate, first the half, sold the third XX:XX As the were not most of Real so gains as did

quarter kind generated as we in investment there we one So there. in and so was third Energy happened And and we pieces the renewable in do whereas divested PE, some in the case what as States, profit sold had Environment, United And Hanzhong where during industries of are States. United energy just is others. of this. you for and have with In States, as has and we also, And Egypt, United -- Japan. from asked, make course, some of here there we such don't bits initiatives, in

investments were And And the of we you into exit the one are of so have about is the this some deals, for as -- quoted. making. that that amount there that time, that amalgamated X

¥XX time So of make because an not may others of the an this we investment some I'm course it by thought to you noted contribution But is Now It a and investment. we've was fact, to on followed made the And investment going fee, be of dollar exit will significant. have the generation. an of to mentioned, out US -- increase billion, not was because it base. these gain there's all during to the billion, be by year. it sure were held we And not so ORIX significant quite and calculate this fact, see -- ¥XX right. decided in combined XX:XX profit kind yen exposure performance the in is of that ¥XXX now asset Europe, perhaps And is also, some been was we some. And it but did billion what so be the to if -- also, billion, results. on ¥XX actual we COVID. which so Japanese yen's in basis, dollar terms which XX:XX fact, increase result depreciation, a ¥XX a recovered and billion of in increase, basis, focused brought sold about the to that has have were of positive And on has about loan, you there did have

So so. and billion to about question. ups your downs, ¥XX there some or answers will ¥XX I this hope billion be

Unidentified Analyst

Yes, XX:XX Mr. you. very thank Yano. you much Thank

Operator

securities, your XX:XX Sakamaki- Nomura ask question. San, Please

Naruhiko Sakamaki

you. Can Yayoi the in billion negative ¥XXX is third Thank plan, there progress comments, of quarter fourth Securities. XX:XX you Nomura power, an factors? the is in investment the is Can that since and about quarter, the you Sakamaki, a in increase or environment also you What how on those? quarter is are the But is plan terms So the provide How sold, fourth please? Energy you review in -- this potential against level. or What about area? And Yes. My started Japan nobody against the in government the it please explained. against changed had But think please in performance risks the at question year-on-year? first fees. was the wind the XX:XX XX:XX the does update this? profit. us second question progress quarter? the in pretty maybe But good. talk regulation is some speaking, the Environment. compare And has you I please Can negative third about for additional and

Hitomaro Yano

is announced first probably to year said though, used, going you. be that capital I'm is you very know anyway, billion this this have post-tax to there's and profit the your is the question and for this of level we going complicated. billion. XX:XX little about be expect. And ¥XXX the profit, so to this. remaining be has intentionally was Having than gain, of Is what pretax to post this definitely this already. something going Thank fourth usually we XX% we but want I'm a unfortunately, of billion, regard that question bit a sure is post-tax about high, might sure lower XX:XX this completed But billion that what that not question, I quarter, But don't ¥XXX tax-wise, if been Yayoi, fiscal is be to With going ¥XXX saying come up. In would this, right to achieve. would ¥XXX basically wanted to way

basically, to Yayoi. done have in expecting -- Yayoi So capital that maybe some big fourth gain, not quarter. excluding the are will than we other a in -- in be the quarter, But

not we Yayoi. So do go that much in up except that believe the will profit quarter the fourth

will We the sometimes asset the post situation have we at look to in fourth impairment take quarter. and another

intend regard XX:XX to achieve possible, take go the we ¥XXX billion, even question. But to And a at So question. anyway, that. look That second to and is we your with if have first higher.

are we Energy, and Environment For steadfast.

We on. all without That's are big making steady you can any progress changes. I update

that hope I your So question. Yes, satisfies you. thank

Operator

for you Securities, SMBC Thank the Nikko question. Please. XX:XX Muraki-San, I'm

Masao Muraki

is to investment. I units be to ¥XXX fact, well, the a Muraki your I Up that one major which deals -- thank Japan, smaller, divested, you in there your Yayoi, SMBC to going have a Nikko. the become may but question in was from the until deal businesses. XX:XX Page be recycling, relatively going wasn't capital explanation And PE billion, somewhat were in and hear to regard of perhaps is X or now one of major the I on but am with explanation. your Investment, for able

be any fact, implication credit is the in given to investment? policy is if rating? there will it I In understand in rating, was as has if revised the upward. that your to the be of forward, in to your to If kind statement. happen color going an was a Or major little give larger there kind there you a happen that to then, us deal, any States? could would major of such, thinking of been So And execution going be about United Japan investment your that more capital

Hitomaro Yano

please, not with was birth sorry of my become given I'm can a to But what you, any very to the know I the area, as share from little part tender. do explanation as from details. to to geographical to -- segment, directly could a look So you ambiguous refrain not need it giving offer we unit. in large take kind a wanted that sharing and be XX:XX I further forward there may an but a as and seller you as often, a case we

you divesting going -- we to see so Yayoi, be Yayoi. are therefore So

take for hope credit in it therefore, obligation. that something investment maintain options rating. current course, to the rating. range our rating to result we be an for the us current the to rating. funding, this it I better replace of But and about current example, Yayoi, it If like to investment, be because so think perhaps answers we we But -- would and promising, still, be a within So that the sales course, of to could generated of your favor the of persistent we're of therefore, conditions go future sacrifice But question. be have reinvesting bit ahead rating, that of don't make a of of XX:XX even sure, of would would would of very the course, if we we necessarily don't credit doesn't the but to, maintain money may mean the would not Yayoi, on it the But of course, course, for course, to the we use give an make, that do be seems as can, so we course, as current proceeds need the of feel the proceed. of happy. As the terms the terms rating. maintaining we'll financing, want one of or

Masao Muraki

excess so so at credit So of have do terms how Greenko in the acquisition possible, capital finances? to of divesting you're you the much now RAC, how of that Yayoi, of of inclusive have an your And rating in you XX:XX current terms much going value Elawan? be your after all if do and

Hitomaro Yano

fact, total, So XX:XX I a to the assets, imagine, think an in our addition uptick, -- of have an exposure to of would because of X% would goodwill, of sales the profit. in Yayoi, with X% less the as which I to result put

will our a I would share X%. XX:XX don't I So revenue the So readily give it with number impact, is an course, any but about will details and you uptick. be positive -- can X% I that X% of of I of imagine. have I that, think, Yes, think X% of you minus us the tax, contribution if if be give positive further would it time, details now about available, is that I know further within limit can -- I an to

Masao Muraki

Understood. Thank you Yano. you. Okay. XX:XX Thank

Hitomaro Yano

-- sorry Just about this. XX:XX

I it for So Bitexco, Egypt why should Egypt. know think said I Vietnam. be don't I

So the was Renewable in Egypt. not Energy divestment in and Vietnam

correction. So

Operator

XX:XX Thank Please. Securities, Watanabe-San. Daiwa much. you very

Kazuki Watanabe

we be the year? will And X just like works? or This your profit to years, Page you be explain announcement? guidance this this also of Watanabe, going Yes. for show please is update numbers? years not do Can FYXX XX:XX fiscal Daiwa maybe Securities. earnings plan, and profit how midterm How X beginning XX an the dividend outlook, but is interpret guidance policy the going this you to disclosed at

Hitomaro Yano

this will some the dividends we're specific nothing the the which, enter has hoping specifics will share would is in number, for in think guidance, information graph, time, in planning to we sufficient. during X of specifically we including showing share we're Unfortunately, sorry. all going internal decided. I beginning that's But just we how can like our we but this something going or with yet, with hope and decided. That's to this. this, year And decided are And items, Well, should be I I can profit we do had not soon, you don't quite the I'm And the we to May. return to do at to in year, regard phase that have be some And thinking. discussions point a point XX:XX you years fiscal been time, show understand. address every have with this communicated. investors, you at

Kazuki Watanabe

understand, much I very Yes, you thank XX:XX

Operator

on from to person the Otsuka-san, please. XX:XX Securities. Let's JPMorgan move next

Wataru Otsuka

be to simple on going the XX:XX I'm question. This is Otsuka a side. left-hand from Page X JPMorgan.

be If chart. of in so This be this understanding from interpret profit side. is my ¥XX making ¥XX. payout so between this to unsuccessfully correct left-hand take dividend XX% is if going you the to Is this a to billion on you're use to us be ¥XXX how could achieving This so, of chart kind and DPS going you're

Hitomaro Yano

please while XX:XX left-hand right-hand refer to understand to well side. So try as the the left-hand the side side, you

profit. by in was shown there of should we of, successful the ¥XX were kind chart. is a beyond going So achieving become possibility we That any beyond imagining of billion ¥XXX

Wataru Otsuka

in I XX:XX course, a at to, you're case, see time, in of point then. that ¥XXX billion. aspiring Oh, is, question Well, this my

this going, the this bulletin and we course, payout So is shared see those is dividend below have, of above XX%. I if those but that -- report ¥XX, ¥XX oh, publishing DPS, think the and less you you're ratio on than

to, increase So able which course, of be DPS. means you'd

is of just corporate? it a the So the how communication of interpret matter to

Hitomaro Yano

December, us the in is out had our revision. just profit too carry that it we early Well, XX:XX for up we revised so to thought

why. is So this

to achieve which that even kind higher. ¥XX chart, of And I commitment the think, through and is -- able company. this was to intent which give we this as ¥XX indicated DPS a here billion, rather, achieving this may management to this be a that to we of want provide be that means our or ¥XXX means perhaps

and range, much ¥XX. of and there range falling you ¥XX You're between this not isn't conscious of risk this of

of for That very is much correct. you. now. As Thank that. you Thank

Operator

Securities, question. your BofA ask Please Sasaki-San. XX:XX

Futoshi Sasaki

question Sasaki I Bank guidance would this XX:XX ask a of just Yes, like of America. a about point is confirmation. to

the be Is outlook the same outlook about time, have that you for that midterm will understand be fiscal March correct? policy. updated indicating profit made 'XX, and just will I at a And year dividend May, Next commitment the ending and disclosed, the you the that today.

Hitomaro Yano

XX:XX say that to I the Unfortunately, am cannot committed I That this, the intention. intent. is but is

Futoshi Sasaki

showing XX:XX from would correct? that situation difficult very Is next unstable, is global on depending what But refrain guidance. predict the and may very us happen. you Yes. situation, it's The year's to

Hitomaro Yano

XX:XX be that accepted acceptable. Well, would think I don't --

and formal to we guidance, guidance, what time specific internally. for the this as is to extent provide of So the explanation, provide can some approach the we more some should provide how but what method we need best discuss we the

Futoshi Sasaki

fiscal XX:XX plan should that and that Is provided. is intention. But is the midterm dividend outlook correct? And intention next also your for be year,

Hitomaro Yano

XX:XX Yes. Yes.

Futoshi Sasaki

Thank Understood. you very XX:XX much.

Operator

Securities, XX:XX Thank UBS please. the question. person you is next the And for Okada-San,

Taiki Okada

I Okada am UBS. from XX:XX

of investment, new getting how future repurchased, of trillion well. could are the shared and in be as you one they? level shares level opportunities would ¥X is you such some more from and have backdrop, time, with the closer measure your PBR to how a pipeline the in the investment us that? So attractiveness, attractive think also But I there perhaps

Hitomaro Yano

than have would for that Well, PBR beyond the discount a PBR away. Xx, share goes much bigger course, But it share shares accounting if that PBR goes at is an of of value one repurchase and But fact repurchase. course, just I price, proceeding without the that we stop saying it our -- shares mean of repurchasing of if the we with XX:XX benefit is share will think doesn't go time. the of program indication, price goes the up, our kind

belief. our So that is

refrain level not by of going PBR. that one doesn't the shares do So PBR with we to of course, -- it the if not is through repurchase execution just from just our repurchase share program proceed program mean shares say because we is because but repurchase time, determined

other, be other think yardsticks course, just would applying of we just about and So than other the PBR. -- factors

Operator

Citigroup XX:XX please. Securities, Thank you very much. Niwa-san

Koichi Niwa

about Citi. year next Yes. and impact of outlook recover main level. expect plan business, out future. long is, the you. pandemic. and that to the you my question will do it In how pre-COVID in your Niwa and think what bottomed has COVID-XX the segments the question XX:XX to I as your for And can the you internally you level according understand internal to take them like is of discussions? is you discussed for beyond, been a to with would X recovery what's Thank the have prepandemic to explained midyear, This I impact your

Hitomaro Yano

XX:XX be quite briefly actually as Yes. To I earlier. this have honest, difficult is explained

common is to said hotels Having first Japan, lease if International the to situation. know autumn, difficult we coming but don't time with is place. the but of when at the happening recover. influenza lot example. now and basically of world. to see clearly if like Japan turning way And cautious. we you unfortunately, the in take saw turning the for right is Aircraft flights cancellations. this, recovery saying one Therefore, and very This be not example, Omicron, closed are inns back. it will cold of frame is the very be normalization some recovery saw say -- that, more Europe, For is some because be look this may country in a the February-March the in to I Omicron is to rest of

for So make figure recovery, example, delayed compared And sure take may be we I the but to out we we your recovery a lease, and trying out. really even when we're But slower. I not can is Airport understand are to need will see do answering exactly know, cannot place. recovery recovery in our next what that hope we to the to XX:XX be I'm year, that's We a concession fiscal we if other What situation. to question what to in actually, is will say there need need business. sometime the of for Kansai really aircraft figure areas, you do posted. hoping profit

Koichi Niwa

if the expected. future? quarter, will the slower about you a Do recovery and you strong What little be that the In it this than is XX:XX the temporarily bit seems Avolon, is could think in third recovery comment?

Hitomaro Yano

closing-wise, ORIX X of accounts in there is for and that closing XX:XX Avolon, also this I it's Avolon answered put a Aviation is different, But and the way. them delay about question behind. I I quarter and fiscal and year therefore, together, thought

posted so negative. third In So XX comeback big Hainan is impairment was last a the Chapter that. this quarter, from quarter year, in was there recovery or second the

for is industry So are and normalizing. either recovering the pushing of revenue. airline some up we extraordinary generally ORIX have now as as speaking, down. factors on collection and well. are cash quarter, numbers happened But were But some these posting some normalized the side. those third that nothing really And lease accounts And are payments lease fee

we that actually looks. it items, stronger how than extraordinary the if is believe I exclude So the recovery

Koichi Niwa

you Thank for much very explanation, Thank that’s you. XX:XX clear. very

Operator

[Indiscernible] you from Jefferies the Securities. XX:XX for Thank The person question. is next

Unidentified Analyst

you about ask location. loss on interest basis, it Energy, fixed funding XX:XX could So And renewable cannot with of in the is on I profit share overseas terms regard to financing, if so enough could? sensitivity does generation regard kind if expectations with us you the income. loss your from I foreign loss share to don't like to us think hike, rate if the of be the affect the questions Renewable with ForEx, would hike energy, there profit how especially that or currency-denominated to much to with in rate also unrealized is or you by FX, interest

Hitomaro Yano

XX:XX First trillion in favorable domestic talking trillion yen a only Japanese interest if we the for And – Well, up. Ships asset have market. do to ¥X.X impact it goes Aircraft, we course, all. of able all, goes the about down, about if, know up or and some position ¥X and ORIX be ¥X mismatch even we terms rate. of is USA, of and of rate at Life, ORIX ¥XXX the will billion interest give doesn't enjoy the trillion and course, P&L to And

-- at the interest the fix of when rate. was some interest time did Some rate the low, we

rate an ¥X to our is X% this ¥X mismatch hikes profit. that will So billion by sharply, not of to all sudden, be given But impact of if the significant. about trillion, a the

with ¥X our from ¥X is think, quite, trillion, billion perspective. So I insignificant

problems I energy, renewable energy. see with So renewable any do major not

benefit about the cost be if down, talking I to is goes some of there So market, financing going Japanese the think unrealized gains.

the fluctuate and interest the that outside of value we for very business the see Japan, a So does not value much don't so rate energy really renewable from perspective, happening.

Unidentified Analyst

Thank much. you very Okay. XX:XX

Operator

The floor open for is XX:XX questions.

We accepting Morgan Instructions] questions. question. Please are Tsujino-san. Stanley, UFJ [Operator your Mitsubishi ask

Natsumu Tsujino

Yes. XX:XX

operation, we happened? third previously, do explanation maybe into impairment the of have the that was we wanted the seen evaluation. you payment was assets quarter, actuality of be actually perspectives. kept you change the in and would of there Was could in this you aircraft you terms you there now posted impairment. terms but sold think for fourth to reviewed quarter received. and But be Finance-wise, to older advance I that and better actually play a very big that little is But this ones have in room there will ORIX this? included That said a impairment will probably What this possibility different from and off. For be you say you

Hitomaro Yano

was or to a was I review and was impairment, decided for this that us ¥X So we and the billion XX:XX the trigger XX, that this Yes. Chapter think billion, post ¥X size. a to

how So beyond happened. we this that's intention be And We is what try it. there no and to did conservative that. is additional

Natsumu Tsujino

XX:XX I see.

So there a was trigger.

-- these forward into Is aggressively. quarter, you real aircraft evaluating that estate investees, the fourth correct? assets will Now be going more and assessing the properties,

Hitomaro Yano

but we see tend of that Well, why as tend every fourth rule, fourth the the to and -- quarter a actually numbers is XX:XX at year we general in bigger things seriously every this, look we in to quarter. course, quarter look more at

to do course. according something to that pay close not of to rules, this. the we accounting attention This We And is can will intentionally. do have actually continue this, we to

need of if we So need course, to we post post to something, that.

necessary quarter in we So as well. will the do is fourth whatever

I cannot say that, anything. Beyond really

Natsumu Tsujino

XX:XX the interest rate United this cost question for In One question. last is financing Ban-san about interest asked -- States, of average this segment, the what funding? overall payment, cost.

Hitomaro Yano

a go and And in margin we started down the XX:XX went -- means assets the 'XX, payment that, of slightly, Well, by quite went if financing I shrunk down the which in went interest down. example, think but interest July from that the United rate September, cost see you big for down. States. the number short-term slightly, to actually beginning calculate the

Natsumu Tsujino

happens X lot. rate year, rate a raised a quite short-term in times hike interest the XX:XX If will be

you just please wondering Can a I'm this mentioned little Maybe enough. year, if down if worried. is number. this word. take go billion I enough. the you really number whether is wonder per ¥X I So interest is this your this explain? bit rate COVID, should But did after and sufficient, I'm

Hitomaro Yano

XX:XX what's ORIX based USA, Well, your correct? at think is happening that I on analysis is

Natsumu Tsujino

XX:XX Yes.

Hitomaro Yano

and asset XX:XX Interest was and reason. the interest shrunk. down payment That shrunk was rate another went also

happened things look both numbers. Usually, at think year. last consolidated I I

loan is Corporation and ORIX doing ORIX a is own and parent-and-child financing. its So USA, ORIX there

anything, take there have is that and And looking look place balance we but at now, is increase sheet I I'm the at a talk but maybe So speak also I year, do too. and about balance anyway X the only within whole number. the the and not to what Aircraft when is conduct full about at that, difference. this look some would and to when talking well, If I'm take ALM the sheet, I that this analysis, gap have we whole -- year, offset business I subtract so

before So whole this have date this actual is real, revisions. the calculated rate cycle Well, is this of is ¥X billion, is completed. the interest we The true.

Natsumu Tsujino

XX:XX Understand. Thank you.

Operator

ask to Q&A share still further for are remarks. We questions. XX:XX Instructions] seems to be anymore this us no session like accepting Yano now. questions. [Operator his to conclude I'd final There I'd like Mr.

Hitomaro Yano

XX:XX in So thank joining teleconference schedule. this very you busy a despite us much for

to of ask steadily further our course, questions, forward. don't hesitate ask please, And be the is further Sustainability have Thank moving IR shared, any through was we Department questions us to if performance – or us you. business As Department. there

Operator

Thank teleconference. XX:XX this, you taking much in ORIX's So the with part this session. conclude we'd to like for very

this concludes the… So

ORIX (IX) 7 Feb 222022 Q3 Earnings call transcript