ORIX (8591): 4Q results: Target figures look positive, but are mostly reflected into share price

Research evidence excerpt

ORIX (8591): 4Q results: Target figures look positive, but are mostly reflected into share price

iQprofile SM ORIX (8591)

Key Income Statement Data 3/25A 3/26A 3/27E 3/28E 3/29E Company Sector

(¥ Billion) Financial Services-Consumer/Commercial

Total Revenues 2,875 3,331 3,365 3,483 3,616

Direct financing leases 328 366 350 319 338

Operating leases 624 641 644 701 722

Gains on investment securities and dividends 14 129 25 40 40 Company Description

Life insurance premiums and related investment 515 640 692 714 736 ORIX is a unique global financial conglomerate. Its

income

Sales of goods and real estate 373 443 473 481 490 businesses include financial businesses (small business

Services income 1,019 1,112 1,181 1,227 1,288 financing, retail banking, life insurance, asset financing of

Operating Expenses (2,543) (2,875) (2,896) (3,021) (3,114)

aircraft, ships, PE investment, and asset management) and Interest expense (169) (194) (208) (202) (208)

Costs of operating leases (395) (412) (438) (452) (466) other services (real estate, environment/energy, etc). 40%

Life insurance costs (385) (480) (513) (527) (541) of total profits comes from overseas business. It is building

Costs of goods and real estate (272) (332) (374) (380) (387)

Selling, general and administrative expenses (646) (712) (778) (791) (817) profitable and diversified business portfolio with shifting to

Provision for doubtful receivables and probable (19) (34) (15) (15) (15) other services. It is a company moving forward with ESG

loan losses

Write-downs of long-lived assets (26) (16) 0 0 0 initiatives in financial sector.

Write-downs of securities (1) (2) 0 0 0

Operating Earnings 332 456 470 462 502

Income before income taxes and discontinued 480 691 768 696 764 Investment Rationale operations