What were your third quarter results for the fiscal year ended March 31, 2010?

 Net income was 27.4 billion yen for the nine months ended December 31, 2009, increasing 2.1 fold year on year. Fiscal year net income forecast has been revised upward 20% from the 30 billion yen initial forecast to around 36 billion yen mainly due to the strong performance of the Overseas Business segment.
 Segment profits for the third quarter of FY10 continued on a recovery trend as the “Corporate Financial Services Segment” and “Investment Banking Segment” recorded decreases in losses from the second quarter and the “Overseas Business Segment” maintained significantly higher profit levels than the original forecast.
 In order to respond to the global economic slowdown and credit crunch, ORIX has strengthened the corporate structure and realigned operations with the aim of maintaining financial stability and asset quality while increasing revenues. As a result, ORIX has achieved the full year forecast for FY2010 of D/E ratio and total asset reduction, and financial strength is improving at an accelerated pace.
(For more information, please refer to our press releases for Quarterly Financial Results and Third Quarter Results. ) 

What is the forecast for the fiscal year ended March 31, 2010?

 The fiscal year net income* forecast has been revised upward 20% from the 30 billion yen initial forecast to around 36 billion yen mainly due to the strong performance of the Overseas Business segment.
*“Net income” is the same as “quarterly net income attributable to ORIX” referred to in the financial statements "Annual Consolidated Financial Results for the fiscal year ended March 31, 2009".

 Segment profit forecasts are as follows.

Corporate Financial Services
Profit forecast: (10 billion yen)
Forecast: Decrease in segment assets in line with the tightening of credit and increased collections. New occurrences of non-performing assets are past the peak. Collections are progressing swiftly and provisions are expected to decrease in the second half of this fiscal year. New business opportunities will be presented in the challenging environment.

Maintenance Leasing
Profit forecast: 25 billion yen
Forecast: Slackening revenues due to deterioration in the economy; however, will aim for improvement in profitability by controlling maintenance expenses and cost reduction programs.

Real Estate
Profit forecast: 20 billion yen
Forecast: Although the number of condominiums sold will decrease, write-downs have decreased considerably, and the trend will continue for the second half of this fiscal year. Gains on sales expected to decrease due to the stagnant real estate market.

Investment Banking
Profit forecast: (15 billion yen)
Forecast: Decrease in revenues resulting from declining asset levels due to enhanced collections and curbing new non-recourse loan transactions. Provisions in the second half may exceed the amount of provisions recorded in the first half depending on environment, but this has been taken into consideration in the fiscal forecast. A loss was recorded for JOINT CORPORATION, however the absence of impairment and losses from DAIKYO and Fuji Fire and Marine will result in lower segment losses compared to the previous year.  

Retail
Profit forecast: 20 billion yen
Asset levels in the trust and banking business have steadily increased. Improvement in life insurance related investment income expected to continue for the second half of this fiscal year. Gains on the sale of ORIX Credit shares were recorded during the second quarter, and going forward ORIX Credit will be recognized under equity in net income (loss) of affiliates. Segment profits are forecasted to improve significantly compared to the previous fiscal year as capital gains resulting from the share exchange for the purpose of merging securities subsidiaries (9 billion yen) will be recognized in the fourth quarter.

Overseas Business
Profit forecast: 15 billion yen
Overall decrease in assets due to tightening of credit. Provisions are forecasted to increase in the U.S., while remaining flat in Asia for the second half of this fiscal year. Segment profits expected to trend favorably due to realized gain on investment securities in the U.S. in line with overall market recovery and profit contributions from principal investment in Asia.

What is your management policy going forward?

 Since early 2009, the main measures to respond the financial and economic crisis have been "balance sheet reduction", "reduce leverage", "cash flow focus" and "bolster risk management". Financial stability has improved as a result of swift response through these measures. Performance is recovering successfully and sufficient results have been achieved in the first step of the crisis management. Currently, ORIX is in the second step where we need to show our capacity to create new business and increase profitability in the new operating environment. ORIX will aim at net income growth by 50% in FY11 and double-digit growth thereafter.

 The next 1-2 years will be a run-up period for the next growth stage. We will steadily recover profitability to prepare for the third step where the mid- to long-term strategy is required to be implemented. Strategies toward the next growth stage will focus on the following points.  

Domestic: 1. Expand and improve maintenance leasing services 
               2. Trust and Banking & Life insurance : Cultivate a corporate client base
               3. Environment: Aim to be an "Eco-service Integrator"
Overseas: 1. Local operations in Asia: Organic growth
               2. China: Establish a Holding Company, diversification and partnership
               3. U.S.: Continue to expand highly specialized businesses

What's the current situation of your real estate-related assets?

 ORIX’s real estate-related assets consist mainly of loans to real estate companies, non-recourse loans for which cash flow from real estate is the main source of repayment and properties held by our real estate business.
 The number of “loans individually evaluated for impairment” (loans for which collection is doubtful) increased during fiscal 2009 due chiefly to the sharp decline in liquidity in the domestic real estate market, resulting in an increase in provisions. We have been stringently selecting new transactions since last year resulting in a decrease in the balance of loans to real estate businesses.
 We believe that the number of new loan impairments has peaked out as a substantial amount of loans related to high-risk real estate developments are already classified under loans individually evaluated for impairment.
 Despite a decrease in provisions for doubtful receivables and probable loan losses during the third quarter, all signs indicate that continued caution is necessary in relation to the real estate market. Real estate collateral has been acquired in some cases in order to maximize collections and we are striving to increase real estate value by capitalizing on ORIX’s real estate value chain.
 The rental property portfolio has sufficient profitability with a 5.6% average NOI (as of December 31, 2009). We have adjusted our schedule for projects under development to control construction costs. Therefore, we currently do not believe that we need to record write-downs on the majority of long-lived assets. A total of 17.7 billion yen in write-downs of condominium-related assets was recorded from the fourth fiscal quarter of fiscal year 2008, and the likelihood of further write-downs is minimal barring the further deterioration of the condominium market.
 We plan to minimize real estate risk and maximize profitability by proactively capitalizing on our accumulated real estate expertise encompassing a wide range of asset types.

*NOI: [Rental revenue – Rental cost (Including repairs, maintenance, insurance and tax expenses)] ÷ Book value

What is your funding situation?

 “Fortification of Financial Stability” is a specific measure for strengthening the corporate structure, and ORIX’s current strategy is to reduce interest-bearing debt and improve the debt/equity ratio.
 Moreover, capital was increased by a public offering in June 2009, the first step to conclude management's focus on dealing with the financial crisis. Through the public offering and other factors, the debt/equity ratio* decreased from 4.5 times at the end of March 2009 to 3.7 times at the end of December, accelerating the de-leveraging process and further strengthening the financial base. ORIX has also secured a risk buffer for future growth opportunities and has improved its debt financing capacity and flexibility. We restarted straight bond issuances in December and have issued 175 billion yen (as of the end of February 2010, including those for which terms and conditions have been decided). Going forward we will continue the policies of fund raising from the capital market.  
* Excluding deposits of ORIX Trust and Banking

 In the three quarter period, interest-bearing debt decreased by 444.8 billion yen compared to the end of the previous fiscal year, achieving about 73% of the full year target with asset reductions also progressing on track. In addition, we have maintained sufficient liquidity with 680.8 billion yen in cash on hand and 363 billion yen in available commitment lines as of the end of December.

What is your shareholder composition? What is the trend of individual investors?

Please refer to the ORIX Stock Information page by following the link provided.ORIX is well evaluated by its wide shareholder base.

What is ORIX doing for the environment?

 During 2009, Japan pledged on the world stage to cut its total greenhouse gas emissions by 25% of 1990 levels by 2020. In order to realize the pledge, there must be a fundamental transformation of both the social and industrial structure. Japan has long led the world in the areas of environmental technologies and products. ORIX combines these technologies and products to provide eco services that meet the needs of our clients. We are aiming to become an “Eco Services Integrator” that comprehensively provides a variety of functions such as finance, distribution, maintenance and sales based on our diversified business platform centered on financial services.
 We will also focus on the following four areas in the future: “Solar and other renewable energies”, “Popularization of hybrid and electric vehicles”, “Making buildings energy efficient” and “Water”. Refer to the Environmental Report 2009-2010 for further details regarding ORIX’s involvement in eco services.

What is your dividend for the fiscal year ended March 31, 2009?

 A 70 yen dividend per share was paid for the fiscal year ended March 31, 2009.

What is ORIX's Tokyo Stock Exchange Code?

8591.

What units are ORIX's stocks traded in?

10.

Did ORIX conduct any share splits in the past?

ORIX conducted a 1.2 for 1 share split on May 19, 2000.

Does ORIX offer complimentary services (gifts or discounts) to shareholders?

No.

When does ORIX pay dividends?

ORIX pays dividends annually on March 31. Please see Dividend Information for dividend payment history.

Who should I contact to make changes in the title of share certificates or other administrative matters?

Please contact ORIX's transfer agent for common shares:

Mitsubishi UFJ Trust and Banking Corporation 7-10-11, Higashisuna, Koto-ku, Tokyo 137-8081, Japan Tel 0120-232-711

When was ORIX established?

Orient Leasing Co., Ltd. (name changed to ORIX Corporation in April 1989) was established April 17, 1964 by three trading houses and five banks.

What stock and securities exchanges is ORIX listed on?

ORIX is listed on first section of the Tokyo Stock Exchange and Osaka Securities Exchange, and the New York Stock Exchange. ORIX listed on the first section of the Nagoya Stock Exchange in February 1973 and subsequently delisted in October 2004.

When did ORIX list on the New York Stock Exchange and what is its Ticker Symbol?

September 16, 1998. ORIX's Ticker Symbol is 'IX.'

When does ORIX settle its accounts?

ORIX's fiscal year ends March 31. ORIX also announces results on a quarterly basis.

Where can I find out the schedule for the announcement of ORIX's financial results?

Please refer to the IR Events for the dates of upcoming financial results announcements.

Where can I find information on ORIX's past financial results and other financial data?

Please refer to the Five-Year Summary for a snapshot of ORIX's last five years' results. Please see the IR Library section for Annual Reports, Financial Results and other documents.

Where can I find ORIX's Annual Report?

You can either download ORIX's Annual Report or order a hard copy through our Document Request form.