6-K 1 d278863d6k.htm FORM 6-K Form 6-K
Table of Contents

 

 

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 February 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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Table of Contents

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: February 7, 2022

 

By

 

/s/ Hitomaro Yano

   

Hitomaro Yano

   

Executive Officer

Head of Treasury and

Accounting Headquarters


Table of Contents

 

Consolidated Financial Results

April 1, 2021 – December 31, 2021

 

February 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


Table of Contents

Consolidated Financial Results from April 1, 2021 to December 31, 2021

(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 Nine Months Ended December 31, 2021

(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
 

December 31, 2021

     1,868,113        12.2     282,119        45.6     316,689        51.1     211,341        48.8

December 31, 2020

     1,665,694        (3.0 %)      193,703        (18.2 %)      209,581        (40.2 %)      142,015        (41.9 %) 

“Comprehensive Income Attributable to ORIX Corporation Shareholders” was ¥268,097 million for the nine months ended December 31, 2021 (year-on-year change was a 107.0% increase) and ¥129,493 million for the nine months ended December 31, 2020 (year-on-year change was a 43.1% decrease).

 

     Basic
Earnings Per Share
     Diluted
Earnings Per Share
 

December 31, 2021

     175.17        174.98  

December 31, 2020

     114.27        114.17  

 

*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
 

December 31, 2021

     14,091,160        3,244,765        3,147,960        22.3

March 31, 2021

     13,563,082        3,103,144        3,028,456        22.3

 

*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, 2021

     —          35.00        —          43.00        78.00  

March 31, 2022

     —          39.00        —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

March 31, 2022 (Est.)

     —          —          —          39.00        78.00  

 

*Note 3:

The annual dividend per share is planned to be an amount that a dividend payout ratio is computed at 33%, or the amount of 78 yen, whichever is higher. In the above, the minimum dividend has been stated. For details of dividend forecast for the fiscal year ending March 31, 2022, please refer to “Notice Regarding Revision of Consolidated Earnings Forecast and Dividend Forecast for the Fiscal Year Ending March 31, 2022” announced on December 17, 2021.

3. Forecast for the Year Ending March 31, 2022 (Unaudited)

 

     Net Income
Attributable to
ORIX Corporation Shareholders
     Year-on-Year
Change
 

March 31, 2022

     310,000        61.1

 

*Note 4:

Although forward-looking statements in this document are based on information currently available to ORIX Corporation and are based on assumptions deemed reasonable by ORIX Corporation, actual financial results may differ materially due to various factors. Readers are urged not to place undue reliance on such forward-looking statements.

Factors causing a result that differs from 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.

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

 

1. Changes due to adoption of new accounting standards

     Yes ( x )    No (    )  

2. Other than those above

     Yes (    )    No ( x )  

 

*Note 5:

For details, please refer to “2. Financial Information (6) Changes in Accounting Policies” on page 14.

(4) Number of Issued Shares (Ordinary Shares)

1. The number of issued shares, including treasury stock, was 1,285,724,480 as of December 31, 2021, and 1,285,724,480 as of March 31, 2021.

2. The number of treasury stock was 90,361,337 as of December 31, 2021, and 66,231,916 as of March 31, 2021.

3. The average number of outstanding shares was 1,206,467,458 for the nine months ended December 31, 2021, and 1,242,764,847 for the nine months ended December 31, 2020.

The Company’s shares held through the Board Incentive Plan Trust (2,142,248 shares as of December 31, 2021 and 2,154,248 shares as of March 31, 2021) 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.

 

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Table of Contents

1. Summary of Consolidated Financial Results

(1) Financial Highlights

Financial Results for the Nine Months Ended December 31, 2021

 

        Nine months
ended
December 31, 2020
     Nine months
ended
December 31, 2021
     Change  
         Amount      Percent  

Total Revenues

  (millions of yen)     1,665,694        1,868,113        202,419        12

Total Expenses

  (millions of yen)     1,471,991        1,585,994        114,003        8

Income before Income Taxes

  (millions of yen)     209,581        316,689        107,108        51

Net Income Attributable to ORIX Corporation Shareholders

  (millions of yen)     142,015        211,341        69,326        49

Earnings Per Share (Basic)

  (yen)     114.27        175.17        60.90        53

                                (Diluted)

  (yen)     114.17        174.98        60.81        53

ROE (Annualized) *1

  (%)     6.4        9.1        2.7        —    

ROA (Annualized) *2

  (%)     1.43        2.04        0.61        —    

 

*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, 2021 to December 31, 2021)

Total revenues for the nine months ended December 31, 2021 (hereinafter, “the third consolidated period”) increased 12% to ¥1,868,113 million compared to ¥1,665,694 million during the same period of the previous fiscal year due to increases in services income, operating leases revenues, sales of goods and real estate, and gains on investment securities and dividends.

Total expenses increased 8% to ¥1,585,994 million compared to ¥1,471,991 million during the same period of the previous fiscal year due to increases in services expense, costs of operating leases, costs of goods and real estate sold, and selling, general and administrative expenses.

Equity in net income (loss) of affiliates increased 308% to ¥8,465 million compared to ¥2,077 million and gains on sales of subsidiaries and affiliates and liquidation losses, net increased 177% to ¥26,105 million compared to ¥9,436 million during the same period of the previous fiscal year.

Due to the above results, income before income taxes for the third consolidated period increased 51% to ¥316,689 million compared to ¥209,581 million during the same period of the previous fiscal year and net income attributable to ORIX Corporation shareholders increased 49% to ¥211,341 million compared to ¥142,015 million during the same period of the previous fiscal year.

 

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Segment Information

Total segment profits for the third consolidated period increased 45% to ¥350,781 million compared to the same period of the previous fiscal year.

Since April 1, 2021, a portion of interest expenses, which were initially included in the difference between segment total profits and consolidated amounts, have been charged directly to its respective segments. In addition, a portion of selling, general and administrative expenses, which were initially recorded in each respective segment, have been included in the difference between segment total profits and consolidated amounts. Furthermore, a portion of the leasing business in the Environment and Energy segment was transferred to the Corporate Financial Services and Maintenance Leasing segment. As a result of these changes, segment assets information as of March 31, 2021 and segment profits information for the nine months ended December 31, 2020 have been retrospectively restated.

Segment information for the third 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; Yayoi

 

     Nine months ended
December 31, 2020
(millions of yen)
         Nine months ended    
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     50,442        71,068          20,626         41  
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

       1,676,063           1,637,034         (39,029          (2

Segment profits increased 41% to ¥71,068 million compared to the same period of the previous fiscal year. This increase was due to an increase in gains on investment securities and dividends resulting from the IPO of an investee, and an increase in operating leases revenues resulting from an increase in gains on sales of used cars in our automobile-related businesses and an increase in lending of electronic measuring instruments and ICT-related equipment in our rental business.

Segment assets decreased 2% to ¥1,637,034 million compared to the end of the previous fiscal year. This decrease was due to decreases in net investment in leases, installment loans, and investment in operating leases.

 

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Real Estate: Real estate development, rental and management; facility operations; real estate asset management

 

     Nine months ended
December 31, 2020
(millions of yen)
     Nine months ended
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     16,575        27,861          11,286            68   
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

          872,095              888,077         15,982       2  

Segment profits increased 68% to ¥27,861 million compared to the same period of the previous fiscal year. This increase was due to an increase in sales of real estate by DAIKYO INCORPORATED and its subsidiaries, and an increase in operating leases revenues resulting from sales of real estate under operating leases.

Segment assets increased 2% to ¥888,077 million compared to the end of the previous fiscal year. This increase was due to an increase in advances for finance lease and operating lease.

PE Investment and Concession: Private equity investment; concession

 

     Nine months ended
December 31, 2020
(millions of yen)
     Nine months ended
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     4,580        (10,243       (14,823     —    
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

          378,698              356,907         (21,791         (6

Segment profits decreased by ¥14,823 million to losses of ¥10,243 million compared to the same period of the previous fiscal year. This decrease was due to the write-down of assets to be transferred in connection with the conclusion of asset transfer agreements scheduled to be executed during the three months ending March 31, 2022 at a certain investee, as well as the write-down of inventories at a certain investee. In addition, there was a decrease in equity in net income (loss) of affiliates at our three airports in Kansai in our concession business.

Segment assets decreased 6% to ¥356,907 million compared to the end of the previous fiscal year. This decrease was due to a decrease in inventories and 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 electricity storage system; recycling and waste management

 

     Nine months ended
December 31, 2020
(millions of yen)
         Nine months ended    
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     17,085        18,447       1,362            8   
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

          489,174              696,957          207,783         42  

Segment profits increased 8% to ¥18,447 million compared to the same period of the previous fiscal year. This increase was due to an increase in gains on sales of subsidiaries and affiliates resulting from the sales of investees, and an increase in equity in net income (loss) of affiliates at an investee, partially offset by the absence of bargain purchase gains recorded in the same period of the previous fiscal year resulting from the conversion of an investee involved in wind power generation business in India into a wholly owned subsidiary.

Segment assets increased 42% to ¥696,957 million compared to the end of the previous fiscal year. This increase was due to the recording of property under facility operations and goodwill resulting from the acquisition of a subsidiary.

Insurance: Life insurance

 

     Nine months ended
December 31, 2020
(millions of yen)
         Nine months ended    
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     51,547        45,697           (5,850       (11
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

       1,959,521           2,073,511         113,990       6  

Despite an increase in life insurance premiums and related investment income at ORIX Life Insurance in line with an increase in insurance contracts, segment profits decreased 11% to ¥45,697 million compared to the same period of the previous fiscal year due to a decrease in reversal of policy liability reserve related to variable life insurance contracts at the former Hartford Life Insurance.

Segment assets increased 6% to ¥2,073,511 million compared to the end of the previous fiscal year. This increase was due to an increase in investment in securities.

 

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Banking and Credit: Banking and consumer finance

 

     Nine months ended
December 31, 2020
(millions of yen)
     Nine months ended
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     38,398        34,425           (3,973       (10
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

       2,690,627           2,698,248         7,621       0  

Segment profits decreased 10% to ¥34,425 million compared to the same period of the previous fiscal year. As the same period of the previous fiscal year was affected by sluggish demand for funds, provision for credit losses at ORIX Credit increased. In addition, there was an increase in advertising expenses.

Segment assets totaled ¥2,698,248 million, remaining relatively unchanged compared to the end of the previous fiscal year.

Aircraft and Ships: Aircraft leasing and management; ship-related finance and investment

 

     Nine months ended
December 31, 2020
(millions of yen)
     Nine months ended
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     4,344        3,210       (1,134       (26
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

          601,762              645,870            44,108        7  

Segment profits decreased 26% to ¥3,210 million compared to the same period of the previous fiscal year. This decrease was due to a decrease in equity in net income (loss) of affiliates, as Avolon Holdings Limited recorded losses, despite increases in services income and operating leases revenues in our ship-related businesses.

Segment assets increased 7% to ¥645,870 million compared to the end of the previous fiscal year. This increase was due to an increase in installment loans.

 

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Table of Contents

ORIX USA: Finance, investment and asset management in the Americas

 

     Nine months ended
December 31, 2020
(millions of yen)
     Nine months ended
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     25,120        68,216       43,096        172   
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

       1,220,081           1,336,869          116,788         10  

Segment profits increased 172% to ¥68,216 million compared to the same period of the previous fiscal year. This increase was due to increases in gains on investment securities and dividends and gains on sales of subsidiaries and affiliates resulting from the sales of investees. In addition, there was a decrease in provision for credit losses.

Segment assets increased 10% to ¥1,336,869 million compared to the end of the previous fiscal year. This increase was due to an increase in installment loans.

ORIX Europe: Asset management of global equity and fixed income

 

     Nine months ended
December 31, 2020
(millions of yen)
     Nine months ended
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     27,089        56,167       29,078        107   
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

          369,546              405,055            35,509         10  

Segment profits increased 107% to ¥56,167 million compared to the same period of the previous fiscal year. This increase was due to an increase in services income resulting from an increase in the average amount of assets under management.

Segment assets increased 10% to ¥405,055 million compared to the end of the previous fiscal year. This increase was due to an increase in investment in securities.

 

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Asia and Australia: Finance and investment businesses in Asia and Australia

 

     Nine months ended
December 31, 2020
(millions of yen)
         Nine months ended    
December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Profits

     7,248        35,933       28,685        396   
     As of March 31, 2021
(millions of yen)
     As of December 31, 2021
(millions of yen)
    Change  
  Amount
(millions of yen)
    Percent
(%)
 

Segment Assets

       1,084,222           1,213,353          129,131         12  

Segment profits increased 396% to ¥35,933 million compared to the same period of the previous fiscal year. This increase was due to the absence of the recording of an impairment loss on an investment in an affiliate recorded in the same period of the previous fiscal year, and an increase in gains on sales of subsidiaries and affiliates resulting from the sales of investees. In addition, there was increases in finance revenues in China and South Korea and operating leases revenues in Australia.

Segment assets increased 12% to ¥1,213,353 million compared to the end of the previous fiscal year. This increase was due to increases in net investment in leases, installment loans and investment in operating leases in China, South Korea, and Australia. In addition, there was an increase in investment in affiliates in China.

 

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(2) Consolidated Financial Condition

Summary of Assets, Liabilities, Shareholders’ Equity

 

         As of March 31,
2021
     As of December 31,
2021
     Change  
   Amount     Percent  

Total Assets

   (millions of yen)     13,563,082        14,091,160        528,078       4

(Segment Assets)

       11,341,789        11,951,881        610,092       5

Total Liabilities

   (millions of yen)     10,459,938        10,846,395        386,457       4

(Short-term and Long-term  Debt)

       4,724,102        5,016,628        292,526       6

(Deposits)

       2,317,785        2,281,464        (36,321     (2 )% 

Shareholders’ Equity

   (millions of yen)     3,028,456        3,147,960        119,504       4

Shareholders’ Equity Per Share

   (yen)     2,487.77        2,638.20        150.43       6

 

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 ¥14,091,160 million compared to ¥13,563,082 million at the end of the previous fiscal year due to increases in installment loans, investment in securities, property under facility operations and other assets despite decreases in cash and cash equivalents, and trade notes, accounts and other receivable. In addition, segment assets increased 5% to ¥11,951,881 million compared to the end of the previous fiscal year.

Total liabilities increased 4% to ¥10,846,395 million compared to ¥10,459,938 million at the end of the previous fiscal year due to increases in short-term debt and policy liabilities and policy account balances despite decreases in long-term debt, deposits and trade notes, accounts and other payable.

Shareholders’ equity increased 4% to ¥3,147,960 million compared to the end of the previous fiscal year.

 

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Table of Contents

2. Financial Information

(1) Condensed Consolidated Balance Sheets (Unaudited)

(millions of yen)

Assets

   As of March 31,
2021
    As of December 31,
2021
 

Cash and Cash Equivalents

     951,242       896,039  

Restricted Cash

     128,333       135,126  

Net Investment in Leases

     1,029,518       1,052,017  

Installment Loans

     3,670,784       3,851,697  

The amounts which are measured at fair value by electing the fair value option are as follows:

    

March 31, 2021

   ¥63,272 million     

December 31, 2021

   ¥156,950 million     

Allowance for Credit Losses

     (78,945     (79,116

Investment in Operating Leases

     1,408,189       1,410,656  

Investment in Securities

     2,660,443       2,828,488  

The amounts which are measured at fair value by electing the fair value option are as follows:

    

March 31, 2021

   ¥9,384 million     

December 31, 2021

   ¥17,414 million     

The amounts which are associated to available-for-sale debt securities are as follows:

    

March 31, 2021

       

Amortized Cost

   ¥2,026,767 million     

Allowance for Credit Losses

   ¥(120) million     

December 31, 2021

       

Amortized Cost

   ¥2,179,191 million     

Allowance for Credit Losses

   ¥(124) million     

Property under Facility Operations

     491,855       604,266  

Investment in Affiliates

     887,764       934,927  

Trade Notes, Accounts and Other Receivable

     354,334       308,829  

Inventories

     142,156       138,022  

Office Facilities

     246,399       239,687  

Other Assets

     1,671,010       1,770,522  

The amounts which are measured at fair value by electing the fair value option are as follows:

    

March 31, 2021

   ¥6,297 million     

December 31, 2021

   ¥5,269 million     
     

 

 

   

 

 

 

Total Assets

     13,563,082       14,091,160  
  

 

 

   

 

 

 

Liabilities and Equity

            

Short-term Debt

     307,269       665,886  

Deposits

     2,317,785       2,281,464  

Trade Notes, Accounts and Other Payable

     260,712       226,494  

Policy Liabilities and Policy Account Balances

     1,822,422       1,912,474  

The amounts which are measured at fair value by electing the fair value option are as follows:

    

March 31, 2021

   ¥266,422 million     

December 31, 2021

   ¥216,208 million     

Current and Deferred Income Taxes

     363,460       419,990  

Long-term Debt

     4,416,833       4,350,742  

Other Liabilities

     971,457       989,345  
  

 

 

   

 

 

 

Total Liabilities

     10,459,938       10,846,395  
  

 

 

   

 

 

 

Commitments and Contingent Liabilities

    

Common Stock

     221,111       221,111  

Additional Paid-in Capital

     259,361       261,407  

Retained Earnings

     2,744,588       2,856,748  

Accumulated Other Comprehensive Income (Loss)

     (84,650     (29,369

Treasury Stock, at Cost

     (111,954     (161,937
  

 

 

   

 

 

 

Total ORIX Corporation Shareholders’ Equity

     3,028,456       3,147,960  

Noncontrolling Interests

     74,688       96,805  
  

 

 

   

 

 

 

Total Equity

     3,103,144       3,244,765  
  

 

 

   

 

 

 

Total Liabilities and Equity

     13,563,082       14,091,160  
  

 

 

   

 

 

 

 

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Table of Contents
Note :

Breakdown of Accumulated Other Comprehensive Income (Loss)

 

          As of March 31,
2021
    As of December 31,
2021
 

Accumulated Other Comprehensive Income (Loss)

                               

Net unrealized gains (losses) on investment in securities

     (16,208     (3,635

Debt valuation adjustments

                 558       504  

Defined benefit pension plans

     (21,073     (20,906

Foreign currency translation adjustments

     (36,456     751  

Net unrealized gains (losses) on derivative instruments

     (11,471     (6,083
     

 

 

   

 

 

 

Total

        (84,650     (29,369
     

 

 

   

 

 

 

 

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Table of Contents

(2) Condensed Consolidated Statements of Income (Unaudited)

(millions of yen)

     Nine months
ended
December 31, 2020
    Nine months
ended
December 31, 2021
 
Revenues :     

Finance revenues

     201,230       209,143  

Gains on investment securities and dividends

     27,502       48,390  

Operating leases

     296,520       340,968  

Life insurance premiums and related investment income

     356,147       348,701  

Sales of goods and real estate

     290,541       323,918  

Services income

     493,754       596,993  
  

 

 

   

 

 

 

Total Revenues

     1,665,694       1,868,113  
  

 

 

   

 

 

 
Expenses :     

Interest expense

     60,811       50,458  

Costs of operating leases

     220,465       241,114  

Life insurance costs

     265,278       263,004  

Costs of goods and real estate sold

     247,138       285,160  

Services expense

     313,393       356,548  

Other (income) and expense

     15,007       (8,762

Selling, general and administrative expenses

     334,928       378,524  

Provision for credit losses

     10,166       4,670  

Write-downs of long-lived assets

     591       15,068  

Write-downs of securities

     4,214       210  
  

 

 

   

 

 

 

Total Expenses

     1,471,991       1,585,994  
  

 

 

   

 

 

 

Operating Income

     193,703       282,119  

Equity in Net Income (Loss) of Affiliates

     2,077       8,465  

Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net

     9,436       26,105  

Bargain Purchase Gain

     4,365       0  
  

 

 

   

 

 

 

Income before Income Taxes

     209,581       316,689  

Provision for Income Taxes

     64,266       100,961  
  

 

 

   

 

 

 

Net Income

     145,315       215,728  
  

 

 

   

 

 

 

Net Income Attributable to the Noncontrolling Interests

     3,323       4,387  
  

 

 

   

 

 

 

Net Income (Loss) Attributable to the Redeemable Noncontrolling Interests

     (23     0  
  

 

 

   

 

 

 

Net Income Attributable to ORIX Corporation Shareholders

     142,015       211,341  
  

 

 

   

 

 

 

 

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Table of Contents

(3) Condensed Consolidated Statements of Comprehensive Income (Unaudited)

 

                                         
           (millions of yen)  
     Nine months
ended
December 31, 2020
    Nine months
ended
December 31, 2021
 

Net Income :

     145,315       215,728  
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax:

    

Net change of unrealized gains (losses) on investment in securities

     (4,227     12,573  

Net change of debt valuation adjustments

     (643     (54

Net change of defined benefit pension plans

     196       166  

Net change of foreign currency translation adjustments

     (11,617     40,352  

Net change of unrealized gains (losses) on derivative instruments

     1,271       5,686  

Total other comprehensive income (loss)

     (15,020     58,723  
  

 

 

   

 

 

 

Comprehensive Income

     130,295       274,451  
  

 

 

   

 

 

 

Comprehensive Income Attributable to the Noncontrolling Interests

     1,105       6,354  
  

 

 

   

 

 

 

Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests

     (303     0  
  

 

 

   

 

 

 

Comprehensive Income Attributable to ORIX Corporation Shareholders

     129,493       268,097  
  

 

 

   

 

 

 

(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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Table of Contents

(6) Changes in Accounting Policies

(Adoption of New Accounting Standards)

In December 2019, Accounting Standards Update 2019-12 (“Simplifying the Accounting for Income Taxes”—ASC 740 (“Income Taxes”)) was issued. This update removes the exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, the exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and other exceptions. This update also simplifies certain other elements of the accounting for income taxes. The income tax simplifications related to changes in ownership of foreign equity method investments and foreign subsidiaries shall be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The other amendments in this update shall be applied on a retrospective basis to all periods presented, or on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, or on a prospective basis. The Company and its subsidiaries adopted this update on April 1, 2021. The effects of adopting this update on the Company and its subsidiaries’ financial position at the adoption date were a decrease of ¥215 million in current and deferred income taxes and an increase of ¥215 million in retained earnings in the consolidated balance sheets. There is no material effect on the Company and its subsidiaries’ results of operation and financial position as of and for the nine months ended December 31, 2021 by adopting this update, as compared to the guidance that was in effect before the change.

 

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Table of Contents

(7) Segment Information (Unaudited)

Segment Information by Sector

 

           (millions of yen)  
     Nine Months ended
December 31, 2020
    Nine Months ended
December 31, 2021
    March 31,
2021
     December 31,
2021
 
     Segment
Revenues
    Segment
Profits
    Segment
Revenues
    Segment
Profits
    Segment
Assets
     Segment
Assets
 

Corporate Financial Services and Maintenance Leasing

     319,528       50,442       337,945       71,068       1,676,063        1,637,034  

Real Estate

     253,921       16,575       294,257       27,861       872,095        888,077  

PE Investment and Concession

     243,903       4,580       281,009       (10,243     378,698        356,907  

Environment and Energy

     102,594       17,085       107,167       18,447       489,174        696,957  

Insurance

     359,208       51,547       352,192       45,697       1,959,521        2,073,511  

Banking and Credit

     63,071       38,398       65,019       34,425       2,690,627        2,698,248  

Aircraft and Ships

     22,569       4,344       29,305       3,210       601,762        645,870  

ORIX USA

     95,084       25,120       122,697       68,216       1,220,081        1,336,869  

ORIX Europe

     116,759       27,089       171,017       56,167       369,546        405,055  

Asia and Australia

     92,818       7,248       108,878       35,933       1,084,222        1,213,353  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Segment Total

     1,669,455       242,428       1,869,486       350,781       11,341,789        11,951,881  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Difference between Segment Total and Consolidated Amounts

     (3,761     (32,847     (1,373     (34,092     2,221,293        2,139,279  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Consolidated Amounts

     1,665,694       209,581       1,868,113       316,689       13,563,082        14,091,160  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

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, 2021, a portion of interest expenses, which were initially included in the difference between segment total profits and consolidated amounts, have been charged directly to its respective segments. In addition, a portion of selling, general and administrative expenses, which were initially recorded in each respective segment, have been included in the difference between segment total profits and consolidated amounts. Furthermore, a portion of the leasing business in the Environment and Energy segment was transferred to the Corporate Financial Services and Maintenance Leasing segment. As a result of these changes, segment assets information as of March 31, 2021 and financial information of the segments for the nine months ended December 31, 2020 has been retrospectively restated.

Note 3:   

Inter-segment transactions are included in segment revenues, and eliminations of inter-segment transactions are included in difference between segment total and consolidated amounts.

(8) Subsequent Events

The company had cancelled its own shares pursuant to the policy regarding cancellation of its own shares approved by the resolution at the Board of Directors meeting held on October 28, 2019. The details of the cancellation of the Company’s own shares subsequent to the balance sheet date are as follows.

 

•  Class of shares cancelled

  

Common shares

•  Number of shares cancelled

  

27,447,393 shares

•  Cancellation date

  

January 20, 2022

 

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