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Second president Tsuneo Inui (Left) with U.S. Leasing's Henry B. Schoenfeld (Right), who cooperated in bringing leasing to Japan
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ORIX Corporation was established on April 17, 1964 in Osaka, Japan as Orient Leasing Co., Ltd. by three trading companies and five banks that included Nichimen, Nissho and Iwai (presently Sojitz Corporation), the Sanwa Bank (presently Mitsubishi UFJ Financial Group Inc.), Toyo Trust & Banking (presently Mitsubishi UFJ Trust and Bank Corporation), the Industrial Bank of Japan and Nippon Kangyo Bank (presently Mizuho Bank, Ltd., Mizuho Holdings, Inc.), and the Bank of Kobe (presently Sumitomo Mitsui Banking Corporation). The company's name was changed to ORIX Corporation in 1989. ORIX began operations with a 13-member staff, including current Chairman and CEO Yoshihiko Miyauchi, who at the time had just recently learned the leasing business through a cooperative arrangement with U.S. Leasing International Inc. in the United States. |
ORIX became a listed company in 1970, 6 years after establishment
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ORIX's initial expansion occurred during the period of sustained economic growth in Japan during the 1960s and lasted through to the early 1970s. During this time, strong capital spending by the corporate sector fueled demand for equipment, and led to the first wave of newly established leasing companies in Japan. Under the leadership of the late Tsuneo Inui, (President from 1967 to 1980), ORIX capitalized on the growing demand in this period by expanding its portfolio of leasing assets. In addition, the marketing strategy shifted from a focus on using the established networks of the trading companies and other initial shareholders, to one that concentrated on independent marketing as the number of branches expanded. In April 1970, six years after ORIX was founded, its shares were listed on the second section of the Osaka Securities Exchange, which at the time was the fastest listing of any company in Japan. In February 1973, ORIX shares were listed on the first sections of the Tokyo and Nagoya Stock Exchanges and the Osaka Securities Exchange. |
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Signing ceremony for the establishment of a joint venture company with two local banks in Singapore (1972)
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The 1970s saw the gradual maturing of the Japanese leasing industry and the Japanese economy was adversely affected by the two oil shocks of 1973 and 1979, resulting in reduced growth in capital spending and increased volatility in foreign exchange rates. Despite these difficulties, ORIX continued to grow rapidly by expanding and diversifying its range of products and services to include ship leasing. ORIX set up a number of specialized leasing companies to tap new market potential starting with the establishment of ORIX Alpha Corporation in 1972, which concentrated on leasing office furnishings (presently concentrating on financing to the retail industry), and including ORIX Auto Leasing Corporation (presently ORIX Auto Corporation) and ORIX Rentec Corporation, Japan's first precision measuring equipment rental company, in 1976. With the establishment of the credit company Family Consumer Credit Corporation (Now ORIX Credit Corporation, presently concentrating on card loans) in 1979, ORIX began to move into the retail market by offering financing services to individuals.
It was also during this time that ORIX began overseas expansion, commencing with the establishment of its first overseas office in Hong Kong in 1971, followed by Singapore, Malaysia, the USA, Indonesia, South Korea and the Philippines. |
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Reception celebrating the appointment of Yoshihiko Miyauchi to President in 1980
ORIX changed its name from Orient Leasing
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In the 1980s, new entrants and competition within the leasing industry increased, causing existing leasing companies to provide more specialized services related to leasing, as well as focus on increasing international leasing activities. In addition to Pakistan, ORIX established offices in Sri Lanka, Taiwan, China and Australia, establishing the foundation for operations in Asia and the Middle East.
Yoshihiko Miyauchi (current Representative Executive Officer, Chairman and Group CEO) became President in 1980. Keeping with the times, ORIX continued to expand its range of products and services, and placed increased emphasis on strengthening synergies among Group companies by emphasizing knowledge sharing and cooperation to make optimal use of corporate resources. This included a focus on cross selling a variety of products and services to clients, a fundamental ORIX strategy to this day.
In 1980 ORIX also began its mortgage business and established operations for the quick leasing of general-purpose equipment (now OQL Headquarters). Orient Capital (now ORIX Capital), ORIX's venture capital business, was established in 1983, and the Japanese company Budget Rent-a-Car (now ORIX Auto Corporation) was established in 1985. Operations were further expanded in 1985 with aircraft leasing, and in 1986 with the rental of dormitory accommodation for single individuals, which would become the foundation of ORIX's real estate business. ORIX also initiated a management strategy of proactive mergers and acquisitions to expand operations, and in 1986 made its initial investment in Akane Securities K.K. (now ORIX Securities Corporation) and Osaka Ichioka Corporation (now ORIX Estate Corporation), which is involved in real estate and leisure facility management, in order to further expand its array of financial products and services.
In 1988, ORIX acquired the Hankyu Braves, one of 12 professional baseball teams in Japan, now called the ORIX Buffaloes, which helps to raise name recognition and promote ORIX's corporate image. In 1989, ORIX introduced a corporate identity program and changed its name to ORIX Corporation from Orient Leasing Co., Ltd. to reflect its increasingly international profile and diversification into financial services other than leasing. |
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Yoshihiko Miyauchi ringing the opening bell at NYSE upon ORIX's listing in 1998
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ORIX continued to further develop its operations throughout the 1990s despite the protracted period of post-bubble industrial stagnation in the 1990s, and instability within the financial sector that plagued the Japanese economy for the latter half of the decade.
In 1991 ORIX purchased the Japanese operations of U.S.-based United of Omaha Life Insurance Corporation and entered the life insurance business by establishing ORIX Life Insurance Corporation. In addition, ORIX entered the commercial mortgage-backed securities business in 1997. The latter half of the 90's and early years of the new millennium was a period of growth for ORIX with the acquisition of the domestic financial portfolio of Crown Leasing in 1997, the establishment of ORIX Asset Management and Loan Services Corporation in 1999, and start of the investment banking operations in 2000 on the premise of providing the first securitized non-recourse loans in Japan.
The 1990s was also decade in which ORIX first started to concentrate its efforts in developing its retail business. ORIX Life Insurance Corporation commenced sales of a new range of directly marketed life insurance products--ORIX Direct Life Insurance--in September of that year aimed at the consumer life insurance market. In addition, ORIX purchased Yamaichi Trust & Bank, Ltd. (now ORIX Trust and Banking Corporation) in 1998, and it is presently providing unique products such as internet-based fixed deposit services and second house mortgages.
ORIX Real Estate Corporation was established in 1999 to concentrate on condominium development that was first begun in 1993 as well as develop office buildings in pursuit of improved real estate expertise.
On September 16, 1998, ORIX listed on the New York Stock Exchange (Ticker Symbol: IX) and, through registration with the SEC, has worked to further strengthen its corporate governance regulations. |
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In 2002, ORIX was awarded the second-ever Porter Prize (general finance category) for its highly-rated strategy of providing services for the underlying needs of SMEs
2008 Management handover ceremony
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In 2000, Yoshihiko Miyauchi was appointed Director, Representative Executive Officer, Chairman and Chief Executive Officer and Yasuhiko Fujiki was appointed Director, Representative Executive Officer, President and Chief Operating Officer. In 2008, Fujiki assumed the position of Vice Chairman and Chief Financial Officer, and Yukio Yanase was appointed Director, Representative Executive Officer, President and Chief Operating Officer.
ORIX has participated in large-scale corporate rehabilitation since 2000. In addition, investment banking operations were expanded with the establishment of ORIX M&A Solutions in 2003, and the purchase of U.S. investment bank Houlihan Lokey Howard & Zukin in 2006. ORIX also began its entrance into overseas investment banking and real estate development during this time. ORIX started providing services supporting the move to a low-carbon society in 2002 with the establishment of the Energy and Eco Services Department and ORIX Environmental Resources Management Corporation.
ORIX celebrated its 40th anniversary in 2004 and went on to achieve record levels for the next four fiscal years. In March of 2000 ORIX had a 30.6 billion yen net income and 9,307 group employees, which grew to 169.6 billion yen in net income and 18,702 employees in March 2008. ORIX has come to be well known for its unique position within the financial services.
To date, ORIX has pursued a strategy of providing a diverse array of financial products and services to a clientele of small and medium-sized companies throughout Japan. Presently, ORIX is concentrating on providing solutions to solve the business challenges facing its clients using its accumulated knowledge and expertise.
In addition, presently ORIX has been placing greater emphasis on its retail operations in Japan by providing direct channels using the Internet or through ORIX's call center in order to both reduce costs and at the same time increase the convenience of services.
ORIX's strength lies in its ability to take on new business challenges one step ahead of the competition. ORIX is constantly pursuing new businesses and providing financial products and services to meet client needs in an attempt to further increase corporate value. |
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