Corporate Financial Services and Maintenance Leasing
Information as of March 31, 2022.
Corporate Financial Services
Business
Leasing, financing, and various solutions (products and services) for small and medium-size enterprises
| Assets (Share of total) | ¥707.2 billion (6%) |
|---|---|
| Profits (Share of total) | ¥19.0 billion (4%) |
Overview
Core Sales Platform for the Group
Corporate Financial Services are ORIX’s point of origin and remain the core sales platform for the Group. This business provides a broad array of products and services including life insurance, environment and energy, and automobile leasing, in addition to equipment leasing and loans to small and medium-size enterprises (SMEs), which are our core customers. Moreover, it communicates and collaborates with other parts of the Group, drawing on the Group’s know-how, expertise, and wide range of products and services to propose ideal solutions for customer needs and management issues.
Strengths
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Sales network rooted in each region of Japan
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Strong customer base built on a track record of providing financial services to SMEs
Challenges
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Expanding assets while maintaining profitability and credit quality
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Increasing earnings from fees
Opportunities
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Business succession needs among SMEs due to the lack of a successor
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Capital investment needs with the themes of DX and ESG
Risks
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Intensifying competition for corporate lending and ongoing low interest rate environment
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Negative impact from COVID-19 on results among customers in sectors including dining and leisure
Broad Array of Products and Services from Corporate Financial Services
Leadership
Auto
Business
Leasing and rental of automobiles, car sharing, purchase and sales of used automobiles
| Assets (Share of total) | ¥675.0 billion (6%) |
|---|---|
| Profits (Share of total) | ¥37.9 billion (7%) |
Overview
One-stop Provider of Every Kind of Automobile-related Service
ORIX Auto was established as a company specializing in automobile leasing in 1973. Its strengths include extensive expertise and a broad lineup of products and services. It incorporates automobile leasing, rental, and car sharing in comprehensive proposals aligned with various customer usage conditions such as length, frequency, and purpose of use. We are a one-stop provider of every kind of automobile-related service, including solutions that meet needs for compliance, environmental friendliness, safe driving, labor management, and accident prevention, as well as comprehensive vehicle management outsourcing and used car leasing and sales.
Strengths
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Diverse service menu that enables comprehensive, optimal service proposals
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Global leader in terms of vehicles under management and volume of vehicle data
Challenges
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Acquiring retail customers
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Acquiring new technologies from domestic and international startups
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Seamlessly linking leasing, car rental, and car sharing services
Opportunities
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Growth in mobility services, including the car rental and car sharing markets, as the sharing economy and MaaS become more prevalent
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Electric vehicle needs
Risks
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Decreases in revenue from existing businesses and services and lower residual value of vehicles due to structural changes in the automobile industry
ORIX Auto’s Value Chain
Leadership
Rentec
Business
Rental and leasing of electronic measurement instruments and ICT-related equipment
| Assets (Share of total) | ¥134.6 billion (1%) |
|---|---|
| Profits (Share of total) | ¥14.7 billion (3%) |
Overview
Leading Equipment Rental Company in Japan
Founded in 1976 as the first measuring instrument rental company in Japan, ORIX Rentec is an industry leader and one of the largest companies of its kind in Japan, with 34,000 types of rental equipment and 2.2 million units (as of March 31, 2022). ORIX Rentec focuses on equipment rentals including electronic measuring instruments, scientific and environmental analysis equipment, ICT-related equipment, and medical equipment. We offer outsourcing services for measuring instruments that cover quality control and instrument operation. We also offer ICT-related services that provide customers with optimal operations support for IT assets, used equipment sales, and a purchasing service for instruments and equipment that customers own.
Strengths
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Wide range of rental products and vendors
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Technical ability to maintain and manage the quality of rental equipment
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Logistics service enabling next-day delivery
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Broad customer network that includes large manufacturers
Challenges
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Creating new business through collaboration utilizing our customer base
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A wide range of proposals enabled by converting the expertise acquired over many years into data and using it
Opportunities
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Accelerating use of technology to cope with labor shortages, reform work styles, and counter infectious diseases
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Strong levels of corporate capital investment with a focus on digital technology
Risks
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Reduced need for hardware due to equipment downsizing and technological innovation
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Delivery delays due to shortages of components, such as semiconductors
ORIX Rentec’s Value Chain
