ORIX CORP Q4 FY2025 earnings call

• Consolidated net income for FY 2025 was JPY 351.6 billion, up 2% from the prior year despite missing the JPY 390 billion forecast. ROE was 8.8%. • Reviewed future prospects due to market uncertainties and recorded pretax impairments of JPY 53.1 billion. • Many segments like PE, Concession, Aircraft and Ships, and Corporate Financial Services improved performance. • Pretax profit was JPY 480.5 billion, JPY 10.5 billion more than the previous year. Profit from 10 segments excluding headquarters costs was JPY 544.7 billion. • Finance category profit was JPY 176.3 billion, operation category JPY 200.2 billion, investment category JPY 168.2 billion. • Base profit was JPY 457.1 billion, up 5% from the prior year. Investment gains net of impairments were JPY 87.6 billion. • Capital recycling: Full year capital gains JPY 140.7 billion, cash inflow from sales JPY 645 billion, new executions JPY 600 billion. • President Takahashi forecasted FY '26 March end net income of JPY 380 billion, increased share buybacks to JPY 100 billion, outlined long-term vision aiming for ROE 15% and net profit JPY 1 trillion by 2035, and 3-year plan focusing on ROE improvement, business models, and portfolio management.

Consolidated net income for the fiscal year ending March 2025 was JPY 351.6 billion, up 2% from the previous year's JPY 346.1 billion. Pretax profit was JPY 480.5 billion, with profit from 10 segments excluding headquarters costs at JPY 544.7 billion. Finance category profit was JPY 176.3 billion, operation category was JPY 200.2 billion, and investment category was JPY 168.2 billion, a significant increase of JPY 56.2 billion from the same period last year. Base profit was JPY 457.1 billion, a 5% increase from the previous year, and investment gains net of impairments were JPY 87.6 billion.

• Forecasted FY '26 March end net income of JPY 380 billion, aiming for a third consecutive year of record net income. • Increased share buybacks to JPY 100 billion, double the usual amount. • Aimed for an ROE of 15% and net profit of JPY 1 trillion by FY 2035, with an interim milestone of ROE 11% by FY 2028. • Discussed impact of macroeconomic developments and emphasized cautious approach due to uncertainties but maintained confidence in achieving the FY '26 target.

• Uncertainties due to global supply chain disruptions and resource price fluctuations. • Possible recession affecting existing investments and loan targets in the U.S. and Japan. • Deterioration in investment climate leading to delays in new investments and exits. • Geopolitical risks impacting business activities.

Q: About new investment size, timing, and countercyclical business opportunities.

A: Replied that JPY 500 billion to JPY 700 billion is related to recouping investment, not accounting for cash in from sales. Mentioned the acquisition of Hilco Global as a countercyclical business opportunity, and execution of new investments to be done during the 3-year period with scrutiny of all businesses in the pipeline.