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1Copyright © ORIX Corporation All rights reserved.
2Copyright © ORIX Corporation All rights reserved.
Shunsuke TakedaVice Chairman and CFO
ORIX Corporation
ORIX’s Expansion into Asia
--Lessons Learned in ASEAN and East Asia--
The 31st AJBM in Bangkok
November 23, 2005
5.1.1.3
3Copyright © ORIX Corporation All rights reserved.
1. The Importance of the Asian Market
2. ORIX’s Strategy in Asia
3. Pros and Cons of Doing Business in Asia
4. Factors to Consider When Investing
OutlineOutline
4Copyright © ORIX Corporation All rights reserved.
1.1. The Importance of the Asian The Importance of the Asian MarketMarket
5Copyright © ORIX Corporation All rights reserved.
A Global Economic Power as a RegionA Global Economic Power as a Region
23% of the world’s GDP in 2003
Intraregional trade more than 50% of total trade
FDI in Asia at $148 billion in 2004
6Copyright © ORIX Corporation All rights reserved.
2.2. ORIX’s Strategy in AsiaORIX’s Strategy in Asia
7Copyright © ORIX Corporation All rights reserved.
ORIX Has a Long History throughout AsiaORIX Has a Long History throughout AsiaCompany Country Est. Partner
ORIX Asia Ltd Hong Kong 1971 ORIX 100%
ORIX Leasing Singapore Singapore 1972 DBS Bank; UOB
ORIX Car Rentals Singapore 1981 Tan Chong Investments Ltd
ORIX Leasing Malaysia Malaysia 1973 Antah Holding
Korea Development Leasing* Korea 1975 Korea Long-Term Credit Bank; IFC
P.T. ORIX Indonesia Indonesia 1975 Yayasan K.K., Bank Indonesia
ORIX METRO Leasing Philippines 1975 METRO Bank
Thai ORIX Leasing Thailand 1978 TMB Bank Public Co.
Lanka ORIX Leasing Sri Lanka 1980 RM Nanayakkara; IFC
China Orient Leasing (*) China 1981 CITIC, BMEEG Corp.
ORIX Taiwan Taiwan 1982 ORIX 95%
ORIX Leasing Pakistan Pakistan 1986 Majid Al Futtaim
ORIX Australia Australia 1986 ORIX 100%
ORIX New Zealand New Zealand 1988 ORIX 100%
Infrastructure Leasing & Financial Services India 1993 UTI Asset Management; IFC
Vietnam Representative Office* Vietnam 1995 N/A* No longer under operation
8Copyright © ORIX Corporation All rights reserved.
Partnering with Local Financial Institutions or IFC Financial institutions as provider of equity and debt
IFC as promoter of financial market development
Focus on SMEs Concentrating market efforts on local SMEs
90% of all customers are local
Hiring of Local Management Hiring and training local staff who best understand the market
Almost all top executives and management are local hires
Local Partners, Customers & ManagementLocal Partners, Customers & Management
Three Basic PoliciesThree Basic Policies
9Copyright © ORIX Corporation All rights reserved.
Program Discussions with ORIX Top Management
Learning about ORIX’s Different Businesses
Learning about ORIX’s Culture and Management Style
Attendees 20-30 promising young management from about 20
countries, including Thailand, Indonesia, Malaysia, Singapore, Philippines, India, Sri Lanka, Pakistan, Hong Kong, Taiwan, Korea, Kazakhstan
Young Wave ForumYoung Wave Forum
Developing Local Talent
10Copyright © ORIX Corporation All rights reserved.
3.3. Pros and Cons of Doing Business Pros and Cons of Doing Business in Asiain Asia
11Copyright © ORIX Corporation All rights reserved.
Important Contributor to Earnings
Results for FY3/05
Total Assets: JPY 500 bn
Pretax Income: JPY 22 bn
Employees: 3,200
Results for FY3/05
Total Assets: JPY 500 bn
Pretax Income: JPY 22 bn
Employees: 3,200
0
5
10
15
20
25
FY3/01 FY3/02 FY3/03 FY3/04 FY3/05
Segment Profits in Asia and Oceania
JPY bn
12Copyright © ORIX Corporation All rights reserved.
4.4. Factors to Consider When Factors to Consider When InvestingInvesting
13Copyright © ORIX Corporation All rights reserved.
Four Key Factors
Political Stability
Vital for steady economic development
Development of Business Infrastructure
Achievable through FTA or East Asian Union
Timing of Investment
Investment in right market at right time
Unique Industrial Policies
E.g. Biotech in Korea, electronics in Singapore, automobiles in Thailand
14Copyright © ORIX Corporation All rights reserved.
Shunsuke TakedaVice Chairman and CFO
ORIX Corporation
ORIX’s Expansion into Asia
--Lessons Learned in ASEAN and East Asia--
The 31st AJBM in Bangkok
November 23, 2005