Orix Corp (NYSE: IX)

ORIX is a joint stock corporation formed under Japanese law with its headquarters in Tokyo. The company operates as a diversified financial services group providing leasing lending investment insurance banking and asset management solutions. Its core activities include automobile and equipment leasing real estate development private equity investment concession operations life insurance banking and credit services aircraft and ship finance and global asset management. ORIX serves clients across Japan and internationally through a network of subsidiaries and affiliates.

ORIX generates revenue primarily from interest and fee income generated by its leasing and lending portfolios. Additional revenue streams come from insurance premiums asset management fees real estate rental and sales concession fees and gains from private equity investments. The company also earns income from aircraft and ship operating leases maritime services and fees from its overseas finance and investment businesses. Revenue is derived from a broad base of corporate and individual customers in Japan Asia the Americas Europe and Australia.

The company operates through the following segments Corporate Financial Services and Maintenance Leasing Real Estate PE Investment and Concession Environment and Energy Insurance Banking and Credit Aircraft and Ships ORIX USA ORIX Europe Asia and Australia.

• Corporate Financial Services and Maintenance Leasing This segment consists of finance and fee business leasing and rental of automobiles electronic measuring instruments and ICT related equipment In corporate financial services we are engaged in financial businesses with a focus on profitability and fee businesses by providing life insurance and real estate brokerage products and services to domestic small and medium sized enterprise customers as well as business succession support and M&A broking In the automobile related businesses we possess an industry leading number of fleets and provide one stop access to a full range of automobile services In the rental business operated by ORIX Rentec Corporation we are not only providing electronic measuring instruments and ICT related equipment lending but we are also developing new services relating to robots 3D printing etc.

• Real Estate This segment consists of real estate development rental and management facility operation and real estate asset management We are promoting portfolio rebalancing by taking advantage of favorable market conditions while also making carefully selected investments in real estate projects based on thorough assessments of profitability and risk in light of rising construction costs and other external factors To stabilize our earnings base we are developing businesses that are less susceptible to real estate market fluctuations such as asset management housing related businesses focused on residential condominium development and the operation of hotels and Japanese inns From an operational perspective we are working to strengthen the entire value chain by improving efficiency and service quality including the use of digital transformation.

• PE Investment and Concession This segment consists of private equity investment and concession In the private equity business we aim to enhance the corporate value of investees and to earn sustainable gains on sales through rebalancing our portfolio We are expanding investments in our focus industries and in addition to rollups starting from existing investees we seek to capture investment opportunities arising from business succession needs due to the absence of a successor as well as carve outs and take private transactions as part of corporate restructurings We also seek diversified investment methods In the concession business we aim to strengthen our operations in the three airports in Kansai Kansai International Airport Osaka International Airport and Kobe Airport and proactively engage in the operation of public infrastructures other than airports.

• Environment and Energy This segment consists of domestic and overseas renewable energy electric power retailing ESCO services sales of solar panels and recycling and waste management We aim to increase services revenue as a comprehensive energy service provider by promoting our renewable energy business and electric power retailing business In our solar power generation business we have owned and operated one of the largest solar power capacities in total in Japan We intend to accelerate our renewable energy business overseas by utilizing the expertise we have gained in the domestic market In the recycling and waste management business we are making new investments in facilities with the aim of further expansion of business We are accelerating the restructuring of our business portfolio through capital recycling.

• Insurance This segment consists of life insurance In the life insurance business we sell life insurance through agents banks and other financial institutions face to face sales through our own consulting services and online sales With a core policy in product development to promptly provide products that meet the diverse and evolving needs of our customers we constantly expand the product lineup and aim to increase corporate value In addition we are improving investment returns by expanding investments in high yield assets including alternative assets and by flexibly reallocating our investment portfolio.

• Banking and Credit This segment consists of banking and consumer finance In the banking business we aim to improve profitability by expanding the scope of our merchant banking operations in addition to the origination of real estate investment loans which remains the core of our banking business In the consumer finance business we aim to enhance our personal financial services by forming joint ventures with companies that have a strong customer and business base.

• Aircraft and Ships This segment consists of aircraft investment and management and ship related finance and investment maritime asset management and ship brokerage In the aircraft related business we are focusing on a wide range of profit opportunities including operating leases of owned aircraft sale of aircraft to investors and asset management services for aircraft owned by domestic and overseas investors We aim for medium and long term growth by further enhancing our presence in the global aircraft leasing market through various initiatives including mutually complementary relationships with Avolon In the ship related business we are promoting asset replacement based on market conditions expanding fee income by arranging investments in ships for domestic corporate investors and pursuing business expansion in terms of scale and scope through strategic acquisitions.

• ORIX USA This segment consists of finance investment and asset management in the Americas ORIX Corporation USA is strategically expanding its business domains and developing a diverse range of businesses including corporate finance bond investment real estate finance and private equity investment In addition by managing third party off balance sheet assets we are working to appropriately control asset size and secure stable fee income while aiming to improve capital efficiency and achieve sustainable profit growth.

• ORIX Europe This segment consists of asset management of global equity and fixed income In this segment we are engaged in the asset management business through investments in stocks bonds etc In addition to the focus on expanding the existing businesses by leveraging our expertise as a pioneer in sustainable investment we are working to increase assets under management and enhance profitability through initiatives such as broadening our lineup of active ETFs and offering white label products We are also engaged in capturing a wide range of business opportunities including M&A as the strategic business location of ORIX Group in Europe.

• Asia and Australia This segment consists of finance and investment businesses in Asia and Australia Our overseas subsidiaries are primarily engaged in financial services such as leasing and lending across Asian countries and Australia and also invest in private equity in Asian countries particularly in China We will further enhance the functions of our overseas subsidiaries and further invest in targeted markets in order to expand our business with an emphasis on profitability.

ORIX holds a distinctive position as a diversified financial services group that combines leasing lending investment insurance banking and asset management operations under one corporate structure. This integration enables the company to cross sell products and share risk across its businesses providing a competitive advantage over more specialized peers. Management emphasizes that organizing into large strategic units helps identify and cultivate advantages versus anticipated competitors in each area. ORIX’s long history dating to 1964 and its extensive domestic and international network further strengthen its market presence and ability to source opportunities across regions.

ORIX serves a broad range of customers that includes large corporations small and medium sized enterprises individual consumers and institutional investors. Its leasing and lending activities target businesses needing equipment automobile financing and working capital while its insurance and banking products cater to personal and corporate clients seeking protection savings and credit. The company’s real estate operations serve developers tenants and hospitality guests and its aircraft and ship finance divisions serve airlines shipping companies and investors. Through its overseas subsidiaries ORIX also works with clients across Asia the Americas Europe and Australia.