Expanding the Asian Network and Globalizing Asset Management

「We operate an asset management business that invests funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging our expertise as a pioneer in sustainable investing, we are working to expand our active ETF lineup and offer white-label products to increase assets under management and improve profitability. We are also pursuing a broad range of business opportunities, including M&A, as a strategic business hub for the ORIX Group in Europe. Segment profit increased 7% from the same period of the previous year to ¥44,373 million, as service income increased.」

「ORIX Europe, with ORIX Corporation Europe N.V. as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels. We are also pursuing a broad range of business opportunities as a strategic business hub for the ORIX Group in Europe. Segment profit increased 6% from the same period of the previous year to ¥20,797 million, as service income increased despite higher selling, general and administrative expenses.」

「Segment profit decreased 30% from the previous fiscal year to ¥28,619 million, owing to higher interest expenses on investment in OCE.」

「ORIX Europe, with ORIX Corporation Europe N.V. (hereinafter “OCE”) as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels. We are also pursuing a broad range of business opportunities as a strategic business hub for the ORIX Group in Europe. Segment profit decreased 42% from the same period of the previous year to ¥20,815 million, owing to higher interest expenses on investment in OCE.」

「ORIX Europe, with ORIX Corporation Europe N.V. (hereinafter “OCE”) as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels. We are also pursuing a broad range of business opportunities as a strategic business hub for the ORIX Group in Europe. Segment profit decreased 19% from the same period of the previous year to ¥13,362 million, owing to higher interest expenses on investment in OCE.」

「Segment profit decreased 55% from the same period of the previous year to ¥4,223 million, owing to lower fee income in the asset management business.」

「Despite the reversal of the impact of recording an impairment loss on intangible assets in the previous fiscal year, segment profit decreased 18% from the previous fiscal year to ¥40,675 million, owing to higher selling, general and administrative expenses and lower service income resulting from a decline in average assets under management amid deteriorating market conditions.」

「Segment profit decreased 36% from the same period of the previous year to ¥35,893 million, owing to lower service income resulting from a decline in average assets under management amid deteriorating market conditions, as well as declines in gains and losses on sales and valuation of securities and dividend income.」

「ORIX Europe, with ORIX Corporation Europe N.V. (hereinafter “OCE”) as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels. We are also pursuing a broad range of business opportunities as a strategic business hub for the ORIX Group in Europe. Segment profit decreased 42% from the same period of the previous year to ¥16,419 million, owing to lower service income resulting from a decline in average assets under management amid deteriorating market conditions, as well as declines in gains and losses on sales and valuation of securities and dividend income.」

「Segment profit decreased 31% from the same period of the previous year to ¥9,301 million, owing to declines in gains and losses on sales and valuation of securities and dividend income resulting from deteriorating market conditions.」

「ORIX Europe, with ORIX Corporation Europe N.V. (hereinafter “OCE”) as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels.」

「ORIX Europe, with ORIX Corporation Europe N.V. as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels. We are also pursuing a broad range of business opportunities as a strategic business hub for the ORIX Group in Europe. Segment profit increased 107% from the same period of the previous year to ¥56,167 million, as service income increased owing to higher average assets under management.」

「ORIX Europe, with ORIX Corporation Europe N.V. as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels. We are also pursuing a broad range of business opportunities as a strategic business hub for the ORIX Group in Europe. Segment profit increased 67% from the same period of the previous year to ¥28,591 million, as service income increased owing to higher average assets under management.」

「ORIX Europe, with ORIX Corporation Europe N.V. as its coordinating company, operates an asset management business in which its Dutch subsidiaries Robeco Institutional Asset Management B.V. (hereinafter “Robeco”) and Transtrend B.V., and its US subsidiaries Boston Partners Global Investors, Inc. and Harbor Capital Advisors, Inc., invest funds entrusted by customers in equities, bonds and other assets. In addition to growing existing businesses by leveraging the expertise of Robeco, a pioneer in sustainable investing, we aim to expand our products and strategies through M&A, and increase assets under management by developing distribution channels. Segment profit increased 87% from the same period of the previous year to ¥13,472 million, as service income increased owing to growth in average assets under management since the first six months of the previous second quarter.」

「ORIX USA offers a diverse range of services tailored to customer needs, including corporate loans, real estate finance, private equity investments and bond investments, and aims to further grow its asset-based businesses by leveraging the expertise it has developed.」

「In the United States, in addition to asset-based businesses such as corporate finance and bond investments and equity investments, we are focusing on fee-based businesses such as servicing, asset management and fund management, with the aim of further expanding the business.」

「Segment revenue increased 1% from the same period of the previous year to ¥369,192 million, despite declines in service income and operating lease revenue, owing to higher financial income in the United States from NXT Capital Group, LLC, acquired in the previous fiscal year (hereinafter “NXT Capital”), and higher gains on sales of securities resulting from the sale of existing investments in Asia. In addition, segment profit increased 38% to ¥131,894 million, owing to higher equity-method investment gains from the contribution of Avolon Holdings Limited, a major Irish aircraft leasing company in which we invested in the previous fiscal year (hereinafter “Avolon”), and higher gains and losses on sales of shares in subsidiaries and affiliates in the United States.」

「Under the above strategy, segment revenue increased 2% from the same period of the previous year to ¥244,355 million, owing to higher financial income in the United States from NXT Capital Group, LLC, acquired in the previous fiscal year (hereinafter “NXT Capital”), and higher gains on sales of securities resulting from the sale of existing investments in Asia. In addition, equity-method investment gains increased owing to the contribution of Avolon Holdings Limited, a major Irish aircraft leasing company in which we invested in the previous fiscal year (hereinafter “Avolon”), resulting in segment profit increasing 28% to ¥86,863 million.」

「Segment revenue rose 7% year on year to ¥126,500 million, due to an increase in finance revenue in the United States generated by NXT Capital Group, LLC, acquired in the previous consolidated fiscal year, and an increase in gains on sales of securities associated with the sale of existing investees in Asia. In addition, equity-method investment gains and losses increased due to the contribution from Avolon Holdings Limited, a major Irish aircraft leasing company in which the company invested in the previous consolidated fiscal year, resulting in a 20% year-on-year increase in segment profit to ¥48,068 million.」

「The overseas business segment increased 2% from the previous fiscal year to ¥490,730 million, owing to higher financial income following the acquisition of NXT Capital, which originates loans and conducts asset management in the United States, and higher operating lease revenue resulting from increased gains on aircraft sales in the aircraft-related business.」

「During the third quarter of the current consolidated fiscal year, through its consolidated subsidiary ORIX Aviation Systems Limited, an aircraft leasing business headquartered in Dublin, Ireland, the company acquired 30% of the total issued shares of Avolon Holdings Limited, headquartered in Dublin, Ireland, from Bohai Capital Holding Co., Ltd., headquartered in Beijing, China, and Global Aviation Leasing Co., Ltd., headquartered in Beijing, China, and made Avolon an affiliate. The transaction was intended to strengthen access to the primary aircraft leasing market and scale up the aircraft leasing business.」

「The asset management and aircraft- and ship-related businesses have remained solid, and the company is seeking to scale up its aircraft leasing business, including by agreeing to acquire shares in Avolon Holdings Limited, a major Irish aircraft leasing company. The company also continued initiatives to expand earnings, including investing in a public infrastructure-related business in the Americas and acquiring NXT Capital, Inc., as noted above.」

「The company also continued initiatives to expand earnings, including investing in a public infrastructure-related business in the Americas and agreeing to acquire shares in a loan and asset management company.」

「Overseas, fee-based businesses in the Americas grew, while assets under management and profit at ORIX Corporation Europe N.V. increased, and the aircraft business also expanded its asset base.」

「ORIX Corporation Europe N.V. (headquartered in Rotterdam, the Netherlands; its name changed from “Robeco Groep N.V.” to “ORIX Corporation Europe N.V.” effective 1 January 2018, hereinafter “ORIX Europe”) is a holding company with asset managers serving customers worldwide under its umbrella. Accordingly, all of its operations are presented under “Other overseas.”」

「Robeco is a mid-sized global asset manager that offers institutional and individual investors worldwide a range of combinations of investment techniques from a broad selection of strategies.」

「During the third quarter, we additionally acquired common shares, making Robeco a wholly owned subsidiary of the Company. Robeco is a mid-sized global asset manager that offers institutional and individual investors worldwide a range of combinations of investment techniques from a broad selection of strategies.」

「Robeco is a mid-sized global asset manager that offers institutional and individual investors worldwide a range of combinations of investment techniques from a broad selection of strategies.」

「Expansion of the Asian network and global expansion of the asset management business」