News Release

ORIX Announces Capital Participation in E-Commerce Deferred Payment Clearance Service Provider

Dec 20, 2012

TOKYO, Japan - December 20, 2012 - ORIX Corporation (TSE: 8591; NYSE: IX), a leading integrated financial services group, today announced it has acquired approx. 75% of shares of Net Protections, Inc. (hereinafter "Net Protections"), an e-commerce deferred payment clearance service provider.

Net Protections provides e-commerce sites with deferred payments, where customers pay at convenience stores or through bank transfers once the product has been received. Net Protections is expanding its deferred payment clearance service that pays member stores (e-commerce businesses) for customer purchases and then handles all aspects of billing from issuing payment invoices to confirming payment.

Net Protections boasts an overwhelming share of deferred payment clearance services in the e-commerce market with over 10,000 member stores across beauty and cosmetics, sundries, fashion and food, with over 20 million customers served. Net Protections has a unique business model with independent automatic screening know-how based on their IT system, and small, diversified risk by limiting the amount for each customer to 50,000 JPY (excluding tax). In addition to consumer e-commerce sites, Net Protections is also active in deferred payments between companies through business-oriented sites.

Alongside Net Protections' current management team and staff, ORIX will capitalize on its group-wide finance capabilities and nationwide client base to support in the improvement of corporate value through the further expansion of its deferred payment clearance service and the development of new value-added services.

The Japanese consumer (BtoC) e-commerce market reached was approx. 8.5 trillion JPY in 2011*. In addition to the prevalence of the internet, the number of businesses that are focusing on sales and deliveries through e-commerce sites is increasing in line with the recent sudden popularization of smart phones and tablets.

There are various methods of settlement for purchases made through e-commerce sites such as credit cards and payment upon delivery. However, deferred payment is taking root by appealing to consumer needs such as the peace of mind in paying after receiving the item or the convenience of paying at a convenience store. The amount of Net Protections transactions has increased more than 50% compared to the previous fiscal year, and the future growth of deferred payment is anticipated in the steadily growing e-commerce market.

ORIX will continue to invest in unique companies providing high-quality products, and proactively support growth through exercising synergies capitalizing on both companies' expertise and business platforms.

*1 Source: August 28, 2012, Ministry of Economy, Trade and Industry "FY 2011 Research on Infrastructure Development in Japan's Information-based Economy Society (E-Commerce Market Survey)"

Name Net Protections, Inc.
Location 1-10-6 Ginza, Chuo-ku, Tokyo
Representative Shin Shibata
Establishment January 2000
Main Business Operation of deferred payment services and credit payment services
Website http://www.netprotections.com/Open Link in New Window(Japanese language only)

About ORIX
ORIX Corporation (TSE: 8591; NYSE: IX) is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 28 countries and regions worldwide, ORIX’s activities include corporate financial services, such as leases and loans, as well as automobile operations, rental operations, real estate, life insurance, banking and loan servicing. For more details, please visit our website at:  http://www.orix.co.jp/grp/en/

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 “Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2011– March 31, 2012.”  

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