ORIX CorporationORIX Corporation...• Also look into raising nonrecourse loans and structuring fundAlso look into raising nonrecourse loans and structuring fund (2) Rooftop solar

ORIX CorporationORIX CorporationORIX CorporationORIX Corporation(TSE: 8591; NYSE: IX)(TSE: 8591; NYSE: IX)

Consolidated Financial Results

First Quarter Consolidated Financial ResultsFor the Three Month Period Ended April 1 – June 30, 2012

Copyright © 2012 ORIX Corporation All rights reserved.

DisclaimerO C (“O “C ) f f These materials have been prepared by ORIX Corporation (“ORIX” or the “Company”) solely for your information and are subject to

change without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No representations, warranties or undertakings, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness, or correctness of the information or the opinions presented or contained in these materials.

These materials contain forward-looking statements that reflect the Company’s intent, belief and current expectations about future events and financial results. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. These forward-looking statements are not guarantees of future performance. They are based on a number of assumptions about the Company’s operations and are subject to risks, uncertainties and other factorsbeyond the Company’s control. Accordingly, actual results may differ materially from these forward-looking statements. Factors that could cause such differences include but are not limited to those described under “Risk Factors” in the Company’s most recentcould cause such differences include, but are not limited to, those described under Risk Factors in the Company s most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission and under “Business Risk” of the securities report (yukashouken houkokusho) filed with the Director of the kanto local Finance Bureau.

Some of the financial information in these materials is unaudited.

These materials contain non-GAAP financial measures, including adjusted long-term and interest-bearing debt, adjusted total assets and adjusted ORIX Corporation shareholders‘ equity, as well as adjusted segment profit and other measures and ratios calculated on the basis thereof. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable financial measures included in our consolidated financial statements and presented in accordance with U.S. GAAP. Reconciliations of these non GAAP financial measures to the most directly comparable U S GAAP measures are included in theseReconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are included in these materials on pages 35 and 36.

The Company believes that it will be considered a “passive foreign investment company” for United States Federal income tax purpose in the year to which these consolidated financial results relate and for the foreseeable future by reason of the composition of its assets and the nature of its income A U S holder of the shares or ADSs of the Company is therefore subject to special rulesits assets and the nature of its income. A U.S. holder of the shares or ADSs of the Company is therefore subject to special rules generally intended to eliminate any benefits from the deferral of U.S. Federal income tax that a holder could derive from investing in a foreign corporation that does not distribute all of its earnings on a current basis. Investors should consult their tax advisors with respect to such rules, which are summarized in the Company’s annual report.

Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security commodity or other

Copyright © 2012 ORIX Corporation All rights reserved. 1

Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by the Company or any affiliate thereof.

Contents

I. Overview P. 3

II. Segment Performance

III T i

P. 8

P 15III. Topics

IV. Real Estate Segment

P.15

P.17IV. Real Estate Segment

V. Provisions and Impairments

P.17

P.19

VI. Funding

VII S

P.20

VII. Summary

Appendix

P.24

P 25


Appendix P.25

I. Overview

Achieved 34.8bn in Net Income, a 1.5 fold year on year increase and 35% of the full year target

（JPY Bn） Net Income* and ROE


*Net Income refers to Net Income Attributable to ORIX Corporation

I. Overview Retail, Investment and Operation, and Corporate Financial

Services segments significantly increased profits year on year

（JPY Bn）Trend in Segment Profits


I. Overview Retail, Maintenance Leasing, and Corporate Financial Services

segment assets increased

Trend in Segment Assets（JPY Bn）


I. Overview Upward trend in ROA for all segments

Segment Asset ROA (After Tax)


I. Overview Stable base profit

Increasing trend in base profit yield

Quarterly Trend in Base Profit and Base Profit Yield

g p y

（JPY Bn）


II. Segment Performance 1. Corporate Financial Services

1Q Results Topics1Q Results

New business volume grew 1.6 fold YoY Assets have bottomed out in the third

Topics

Executed large leasing contracts for incinerators, increased lease

i f iquarter of the previous fiscal year Increased ROA

execution for construction equipment

Focus on solar panel distribution


II. Segment Performance 2. Maintenance Leasing

1Q Results Topics

Rentec: Started tablet PC and industrial robot rentals

Increase in base profit due to an increase in lease revenue and decrease in costs and SGA

1Q Results Topics

Auto: Opened a truck rental location in Ishinomaki City, Miyagi Prefecture

SGA Continued high level of new business since

second half of previous fiscal year and increase in assets since FY12 3 end


increase in assets since FY12.3 end Further increase in ROA

II. Segment Performance 3. Real Estate

1Q Results Topics

Commenced construction of four large scale logistic centers

Base profit grew due to increased operating business revenue

1Q Results Topics

Strong revenues from Kyoto and Sumida aquariums

p g Increased profit despite YoY

increase in impairments Continued steady asset reduction


II. Segment Performance 4. Investment and Operation

1Q Results Topics

PE Investment: Invested in KINREI

Energy and Environment: Entered Loan servicer recorded large

collection revenue

1Q Results Topics

Energy and Environment: Entered into the mega solar business Robust revenues from existing

investments Significant increase in ROA


II. Segment Performance 5. Retail

1Q Results Topics

Enhanced cooperation between ORIX Bank and ORIX Credit on

d l b i

Recognized upfront costs for ORIX Bank card loan

1Q Results Topics

card loan business

Reached 1.5 million life insurance policies in force

Recorded gains and increased assets due to consolidation of ORIX Credit

Strong Life insurance premium and life i l t d i t t i


insurance related investment income

II. Segment Performance 6. Overseas Business

1Q Results Topics

China: Joint leasing company with a leading auto dealer Pang Da G b i

YoY decrease of gains from municipal bond trading in the U.S.

1Q Results Topics

Group began operation

Aircraft Leasing: 27 aircraft joint investment with Varde Partners Inc.

Steady increase of lease assets in Asia

Maintained high level of ROA


Maintained high level of ROA

II. Segment Performance 6. Overseas Business

S l

Asia/Australia and Other are increasing, excluding the exchange rate effect

Segment Total

By Region

(USD Mil)


III. Topics 1. Solar Panel Related Business

Entry into the Mega Solar Business

(1) Mega solar business(1) Mega solar business• Expect to invest 100MW/30bn yen in the next 3 years

• Also look into raising nonrecourse loans and structuring fund• Also look into raising nonrecourse loans and structuring fund

(2) Rooftop solar power generation business• Install in factories and warehouses owned by customers or ORIX’sInstall in factories and warehouses owned by customers, or ORIX s

facilities

• Expect 100MW/24bn yen in the next 3 years

Enhancement of Solar Panel Distribution Business• Aimed toward power plants. ORIX will purchase the panels, arrange design

d i t ll ti ith i i i d fiand installation with engineering companies, and arrange finance

• Surge in inquiries from sales locations nationwide


III. Topics 2. Aircraft Leasing Business

Joint investment with the leading U.S. asset manager Varde Partners Inc.Acquire 27 aircraft, provide leasing to leading airlines in China and LCC in the U.S.

Currently own and manage130 aircraft, customer base of 65 airlines in 30 different countries

Aim for 200 aircraft and 100 airline companies

Aircraft Leasing Value Chain Growth of Aircraft Leasing MarketAircraft Leasing Value Chain

IT Systems Investment

Banking/

Global Aircraft

Growth of Aircraft Leasing Market

Accounting & Tax

Marketing

Aircraft Ownership

Lease Ad i

Banking/ Advisory

Legal & Contractual

Services

Ranked by S&P for servicing, asset management earned top ranking of “Strong”

Aircraft Technical Service

Admin


Source: Ascend

IV. Real Estate Segment Steadily continued asset reduction

Real Estate represents a smaller proportion of all segment assetsp p p g

Breakdown of Real Estate Segment Assets

（JPN Bn）

Proportion of Real Estate Segment within Total Segment Assets

（JPN Bn）

2010/3 2012/6

1,677.4

1 310 3 / /

21%27%

1,310.3


IV. Real Estate Segment Base profit yield increased, stable contributions from rental

properties and operating facilities

Maintained low vacancy rate and stable NOI yield

Trend in Base Profit Trend in NOI Yield and Vacancy R t f R t l P ti（JPN Bn） Rate of Rental Properties

21%27%


V. Provisions Provisioning rate remains low

Loans individually evaluated for impairment 93% covered by collateraly p y

Trend in Provisions and Provisioning Rate

（JPN Bn）

Coverage Ratio of Loans Individually Evaluated for Impairment

（）（JPN Bn）（As of June 30, 2012）

*Provisions ÷ (Average Investment in Direct Financing Lease + Average Investment in Installment Loans)


Both provisions and the provisioning rate exclude the effects of adopting the new accounting standards regarding the consolidation of VIEs

VI. Funding Funding Policy

Balanced funding structure Balanced funding structure(Balanced borrowing, deposits and capital market funding)

Lengthened terms and smoothed maturity ladder

Diversified funding sources (Expanded sources and regions)(Expanded sources and regions)

Liquidity Control Liquidity Control


VI. Funding Funding Structure

Diversified funding sources, financial institutions, bonds and deposits

Lengthened maturities for each funding source, achieved stabilityg g , y

Trend in Provisions and Provisioning Ratio

Trend in Long-Term Debt Share and Funding Cost

CP 2.00%90%

（As of June 30, 2012 / Excluding ABS, CMBS）

21%27%

DepositBorrowings from Financial

1.75%85%

Bonds / MTN

from FinancialInstitutions

1.25%

1.50%

75%

80%

/

1.00%70%08/3 09/3 10/3 11/3 12/3 12/6

Share of Long-Term Debt（left）


g （）Funding Cost（right）

VI. Funding Bond Issuances and Maturity

（JPN Bn） 21%27%Straight Bond Maturity Ladder （as of June 30, 2012）

（）


VI. Funding Liquidity On-hand

Continue to maintain ample liquidity on-hand

Liquidity vs. Short-term Liabilities（JPN Bn）

21%27%


VII.Summary

A hi d 34 8b i t i 35% f th f ll t tAchieved 34.8bn in net income, 35% of the full year target

Segment asset ROA increased to 2.3%, stable base profitg , p

Balanced funding structure, maintained ample liquidity on-hand p q y


Appendixpp


Appendix(1) Trend in Performance

（JPY Bn）

*1 Net Income Attributable to ORIX Corporation

*2 Performance indicators shown are Non-GAAP financial measures. For a qualitative reconciliation of the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, please see pages 35 and 36.


Appendix(2) Profit by Segment

（JPY Bn）

* I f di ti d ti (b f li bl t ff t) t i tt ib t bl t* Income from discontinued operations (before applicable tax effect), net income attributable to noncontrolling interests and net income attributable to redeemable noncontrolling interests are included


Appendix(3) Assets by Segment & Region

（JPY Bn）

Overseas Business Segment Assets by Region


Appendix(4) Funding

（JPY Bn）


Appendix(5) Liquidity

（JPY Bn）

*1 Marketable Short-term Debt is the total of bonds and MTN expected to reach maturity within 1 year and the balance of CP.

*2 P f i di t i N GAAP fi i l F lit ti ili ti f th t di tl bl*2 Performance indicator is a Non-GAAP financial measure. For a qualitative reconciliation of the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, please see pages 35 and 36.


Appendix(6) Real Estate Portfolio（JPY Bn） Trend in Real Estate Segment Assets by Type

*67.1bn of NRL/specified bonds held by domestic Group companies not included (12/6)

*

NOI Yield and Vacancy Rate Trends

Gain on Sales of Real Estate Under Operating Lease Trend


Appendix(7) Real Estate Portfolio（JPY Bn） Rental Property Assets by Type (12.6)

Rental Property Assets by Region (12.6)


Appendix(8) Asset Quality（JPY Bn） Asset Quality

*Of the 227.2bn in loans individually evaluated for impairment, 143.5bn is fully covered by collaterals

*

fully covered by collaterals such as real estate. Including 67.3bn in provisions, 92.8% is fully covered

Trend in Provisions and Provisioning Rate

* Provisions (Average Investment in Direct Financing Leases + Average Investment in Installment Loans)


Provisions (Average Investment in Direct Financing Leases + Average Investment in Installment Loans)*The above exclude the effects of adopting the new accounting standards regarding the consolidation of VIEs.

Appendix(9) Reconciliation Table of Non-GAAP Financial Measurement

These materials include certain financial measures presented on a basis not in accordance with U.S. GAAP, or non-GAAP measures, including total assets and long-term liabilities excluding liabilities in line with securitized transactions (ABS, CMBS), as well as other measures or ratios calculated based thereon, presented on an adjusted basis, which excludes payables under securitized leases loan receivables and investment in securities and reverses the cumulative effect onpayables under securitized leases, loan receivables and investment in securities and reverses the cumulative effect on retained earnings of applying the new accounting standards for the consolidation of VIEs, effective April 1, 2010.

(1) Our management believes these non-GAAP financial measures may provide investors with additional meaningful comparisons between our financial condition as of June 30, 2012, as compared to prior periods. Effective April 1, 2010, wecomparisons between our financial condition as of June 30, 2012, as compared to prior periods. Effective April 1, 2010, we adopted ASU 2009-16 and ASU 2009-17, which changed the circumstances under which we are required to consolidate certain VIEs. Our adoption of these new accounting standards caused a significant increase in our consolidated assets and liabilities and a decrease in our retained earnings without affecting the net cash flow and economic effects of our investments in such consolidated VIEs. Accordingly, our management believes that providing financial measures that exclude assets and liabilities attributable to consolidated VIEs as a supplement to financial information calculated in ppaccordance with U.S. GAAP enhances the overall picture of our current financial position and enables investors to evaluate our historical financial and business trends without the large balance sheet fluctuation caused by our adoption of these new accounting standards.

(2) Our management believes that in comparing segment information as of June 30, 2012 as compared to prior periods, the provision of the non-GAAP financial measure of base profit that excludes capital gains allowance for doubtfulthe provision of the non-GAAP financial measure of base profit that excludes capital gains, allowance for doubtful receivables and probable loan losses, and impairments may provide investors with additional meaningful insight regarding segment profit trends.

We provide these non-GAAP financial measures as supplemental information to our consolidated financial statementsWe provide these non GAAP financial measures as supplemental information to our consolidated financial statements prepared in accordance with U.S. GAAP, and they should not be considered in isolation or as a substitute for the most directly comparable U.S. GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures presented in accordance with U.S. GAAP as reflected in our consolidated financial statements for the periods provided, are included in page 35 and 36.


Appendix(10) Reconciliation Table of Non-GAAP Financial Measurement（JPY Bn）


Appendix(11) Reconciliation Table of Non-GAAP Financial Measurement（JPY Bn）

*1 (a) Base Profit = Segment Profit – (b) Capital Gains – (c) Provisions – (d) Impairments*2 Brokerage commissions and net gains (losses) on investment securities, real estate sales (net of cost), gains (losses) on sales of real estate under

operating leases, gains (losses) on sales of subsidiaries and affiliates and liquidation Losses, net, and equivalent amount of real estate joint-venture equity method profit for equity in net income (loss) of affiliates


method profit for equity in net income (loss) of affiliates.*3 Impairment losses for write-downs of long-lived assets, write-downs of securities, and equivalent amount of costs of real estate sales and equity in net

income (loss) of affiliates.

Reference Datae e e ce ata


Stock Market Performance of Major Stock Markets since June 2008

(June 30, 2008 =100)

200

150

200

150

100

50Nikkei (Japan) Dow Jones (US) Hang Seng (HK)

008.06 08.12 09.06 09.12 10.06 10.12 11.06 11.12 12.06

CSI 300 (China) SENSEX (India)


Source: Bloomberg

Interest Rate TrendInterest Rate Trend of Major Currencies since June 2008

6 0(%)

6.01 year Inter-Bank Deposit Rate in Japan

1 year Inter-Bank Deposit Rate in U.S.

4.0 1 year RMB Deposit Rate by Bank of China

2.0

0.008.06 08.12 09.06 09.12 10.06 10.12 11.06 11.12 12.06


Source: Bloomberg

Macro Economic Indicators

Real GDP Growth National CPI (Ex Fresh Food) (QoQ Change) (YoY Change)

(% Change)(% Change)

15.0 8.0

5.0

10.0

2 0

4.0

6.0

-5.0

0.0

-2.0

0.0

2.0

Source: Bloomberg Source: Bloomberg

-10.008.06 08.12 09.06 09.12 10.06 10.12 11.06 11.12 12.06

Japan USA CHINA

-4.008.06 08.12 09.06 09.12 10.06 10.12 11.06 11.12 12.06

Japan USA CHINA

Source: Bloomberg Source: Bloomberg


Japanese Corporate Indices

Tankan Corporate Corporate Bankruptcies(Q ) Diffusion Index

(JPY Tril)

(Quarter)

(# cases)

4,5008.0 20

3 500

4,000

4 0

6.0

0

10

3,000

3,500

2.0

4.0

-10

0

2,5000.008.06 08.12 09.06 09.12 10.06 10.12 11.06 11.12 12.06

Liabilities (lhs) Bankruptcies (rhs)

-2008.06 08.12 09.06 09.12 10.06 10.12 11.06 11.12 12.06

Large Middle Small

Source: Ministry of Finance Source: Bank of Japan


Japanese Real Estate Indicators

Japan TSE REIT Index Office Rental Ratesp(Yen per 3.3㎡)

1,50014,000

16,000

1,0008,000

10,000

12,000

14,000

500

2,000

4,000

6,000

S T k St k E h

008.06 08.12 09.06 09.12 10.06 10.12 11.06 11.12 12.06

002.06 04.06 06.06 08.06 10.06 12.06

Tokyo Ag. Rent Osaka Avg. Rent

Source: Tokyo Stock Exchange Source: CBRE


Domestic Lease Business Indicators

Private Equipment Investment New Car SalesPrivate Equipment Investment New Car Sales(,000)

12.0%

800 000

900,000 14.0%7,000

6.0%

8.0%

10.0%

400 000

500,000

600,000

700,000

800,000

6 0%

8.0%

10.0%

12.0%

3 000

4,000

5,000

6,000

0.0%

2.0%

4.0%

0

100,000

200,000

300,000

400,000

0 0%

2.0%

4.0%

6.0%

0

1,000

2,000

3,000

Source: Japan Leasing Association Source: Japan Automotive Leasing Association

2000 2002 2004 2006 2008 2010

Private Equipment Inv. Share of Lease

0.0%02000 2002 2004 2006 2008 2010

New Car Sales Share of Lease


Other Domestic Indicators

Consumer Finance LoansRetail Life Insurance

140,000250,000

Consumer Finance Loans

(100 mil yen)(100 mil yen)

80,000

100,000

120,000

150,000

200,000

20 000

40,000

60,000

50,000

100,000

0

20,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Consumer Finance Loan(100 mil Yen)

02000 2002 2004 2006 2008 2010

Retail Life Insurance PremiumsSource: Japan Statistics Bureau Source: Japan Financial Services Agency


Additional InformationFor annual and more historical data please access our website. A list of major disclosure materials is given below.

ORIX Website: URL: http://www orix co jp/grp/en/ORIX Website: URL: http://www.orix.co.jp/grp/en/IR Website: URL: http://www.orix.co.jp/grp/en/ir/Financial Reports: URL: http://www.orix.co.jp/grp/en/ir/library/Five Year Financial Data: URL: http://www.orix.co.jp/grp/en/ir/financial_highlight/

If you would like to be included on our e mail list for major news announcementsIf you would like to be included on our e-mail list for major news announcements, please send your request to the address below.

ORIX CorporationORIX Corporation Corporate Planning Department

Mita NN Bldg., 4-1-23 Shiba, Minato-ku, Tokyo 108-0014, Japan

Tel: +81-3-5419-5042 Fax: +81-3-5419-5901

[email protected] yamada@orix co jp


[email protected]

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ORIX CorporationORIX Corporation...• Also look into raising nonrecourse loans and structuring fundAlso look into raising nonrecourse loans and structuring fund (2) Rooftop solar