The Largest Producer of Leafy Vegetables in Western Japan*: Construction Completed on Sunlight-Utilizing Hydroponic Cultivation Facility in Yabu City, Hyogo Prefecture

TOKYO, Japan - April 24, 2018- ORIX Agriculture Corporation (“ORIX Agriculture”), a wholly owned subsidiary of the ORIX Corporation (“ORIX”) announced that construction was completed on a sunlight-utilizing hydroponic cultivation facility that it has been building through the Yabu Farm Corporation (“Yabu Farm”), a farming enterprise that ORIX Agriculture has invested in.

Yabu Farm started outdoor cultivation of crops in July 2015. It has been producing green peppers, paddy-field rice, and other such crops on farming land approximately 2.4 hectares in area. Green pepper production in FY2017 amounted to approximately 18 t, placing Yabu Farm among the largest producers in the Tajima area of Hyogo Prefecture. The hydroponic cultivation facility, for which completion of construction is being announced here, has a cultivation area of approximately 1 hectare, and it will produce spinach, edible chrysanthemum, and other leafy vegetables. Annual production amounting to 155 t is planned, and the produce will be shipped mainly to the Kinki Region, and throughout Western Japan. Operation of this facility will realize year-round cultivation. In addition, an efficient production and shipment system is being created by automating the packing operations in the collecting and shipping facility for the crops grown here.

The ORIX Group entered the agriculture business in 2004 when it established the Kada Green Farm Co., Ltd. jointly with Kagome Co., Ltd. In 2014, the company started a full-scale vegetable production business at a decommissioned school in Yabu City, Hyogo Prefecture. The school gymnasium was put to effective use as a cultivation facility using all artificial light. In 2015, a hydroponic cultivation facility using sunlight was established in the Yatsugatake Highlands in Nagano Prefecture. Through these and other such activities, we have been accumulating know-how while developing stable systems for fruit and vegetable production. At present we are collaborating with business partners at five locations around Japan on the production of fruits and vegetables consisting mainly of spinach, edible chrysanthemum, and other such leafy vegetables. The operation of this new hydroponic cultivation facility will bring the ORIX Group’s planned annual production of fruits and vegetables to a total of 1,730 t.
In July 2016, we also established the ORIX Food Supply Corporation with the aim of adding to the production business by engaging in the business of distributing fruits, vegetables, and other products. In June 2017, we entered a capital tie-up with Farmind Corporation, which is developing a cold chain storage and distribution system for fruits and vegetables, and we began taking part in a distribution business that sold directly to retail stores and restaurants throughout the country. The plan is for the fruits and vegetables that are produced at Yabu Farm to also be sold through the ORIX Food Supply Corporation’s distribution network, and we will be developing a system for the stable supply of fruits and vegetables to a broader area that includes Western Japan.

ORIX will continue taking steps to establish a business system with unified production and distribution, further expanding our agriculture business.

*The largest producer among hydroponic cultivation facilities for leafy vegetables in Western Japan, as of this date (according to research by Yabu Farm)

Contact Information:
ORIX Corporation
Corporate Planning Department
Tel: +81-3-3435-3121

About ORIX:
ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation-driven global powerhouse with a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of businesses in the operations, financial services, and investment spaces. ORIX’s highly complementary business activities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 40 countries and regions across the world. Through its business activities, ORIX has long been committed to corporate citizenship and environmental sustainability. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of September 30, 2017)

Caution Concerning Forward Looking Statements:
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 and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2016 – March 31, 2017.”