New Domestic and Overseas Investments in Priority Areas

「Gains and losses on sales of shares in subsidiaries and equity-method investments and liquidation losses rose ¥66,695 million year on year to ¥98,198 million, mainly because the company recognized an ¥83,135 million gain on the sale of shares in Greenko Energy Holdings, formerly an equity-method investee.」

「Gains and losses on sales of shares in subsidiaries and equity-method investments and liquidation losses increased from ¥72,488 million in the previous consolidated fiscal year to ¥87,705 million in the current consolidated fiscal year, reflecting strong sales and other transactions involving subsidiaries and equity-method investments in Japan and the Americas.」

「Gains and losses on sales of shares in subsidiaries and equity-method investments and liquidation losses recognized during the first half of the current consolidated fiscal year were ¥4,754 million, primarily in the Corporate Sales and Maintenance Leasing segment, ¥19,086 million in the Business Investment and Concessions segment, negative ¥810 million in the Environmental Energy segment, ¥1,019 million in the Transportation Equipment segment, and ¥7,547 million in the ORIX USA segment.」

「Gains and losses on sales of shares in subsidiaries and affiliates and liquidation losses recognized during the first nine months of the current consolidated fiscal year were ¥183 million, primarily in the Corporate Sales and Maintenance Leasing segment, ¥137 million in the Real Estate segment, ¥2,367 million in the Business Investment and Concessions segment, ¥15,675 million in the Environmental Energy segment, ¥4,113 million in the ORIX USA segment, and ¥4,415 million in the Asia and Australia segment.」

「In corporate investments, the company aims to enhance the enterprise value of its investees and generate recurring capital gains through portfolio reshuffling. Going forward, it will expand investments in priority industries and seek to enhance value through roll-ups and alliances originating from existing investees, while also exploring business opportunities created by changes in industrial structures and industry boundaries, as well as diversification of investment methods.」

「July 2021: Acquired an 80% stake in Elawan Energy S.L., a Spanish renewable energy company.」

「Segment assets rose 42% from the end of the previous consolidated fiscal year to ¥696,957 million, due to the recognition of business-use assets and goodwill associated with the acquisition of subsidiaries.」

「In corporate investments, the company aims to capture stable earnings from investees and generate recurring capital gains through portfolio reshuffling. Going forward, it will expand investments in priority industries and seek to enhance value through roll-ups and alliances originating from existing investees, while also exploring business opportunities created by changes in industrial structures and industry boundaries, as well as diversification of investment methods.」

「During the current consolidated fiscal year, business-use assets decreased following the sale of an investee engaged in wind power generation in India.」

「During the first quarter of the current consolidated fiscal year, the company completed the purchase price allocation for its Indian investee engaged in wind power generation, which had been made a wholly owned subsidiary during the third quarter of the previous consolidated fiscal year. As a result, the fair value of net assets, representing the difference between identifiable assets and assumed liabilities, exceeded the fair value of the consideration transferred by ¥4,365 million, which was recognized as a bargain purchase gain.」

「Finance revenue in the United States generated by NXT Capital Group, LLC, acquired in the previous consolidated fiscal year, and Hunt Real Estate Capital, acquired in the current consolidated fiscal year, as well as gains on sales of securities associated with the sale of existing investees in Asia, increased. However, due to foreign exchange effects, the total fell 1% from the previous consolidated fiscal year to ¥486,328 million.」

「Segment assets increased 10% from the end of the previous fiscal year to ¥808,466 million, due to the acquisition as a subsidiary of an investee engaged in the wind power generation business and an increase in operating assets associated with the adoption of the new lease standard.」

「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.」

「Total assets rose 7% from the end of the previous consolidated fiscal year to ¥12,174,917 million. Operating loans increased mainly as a result of the acquisition of NXT Capital Group, LLC, which originates loans and conducts asset management business primarily in the United States. Investments in affiliates increased following the acquisition of shares in Avolon Holdings Limited, a major Irish aircraft leasing company.」

「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.」

「Regarding new investments in key areas, the company invested in environmental energy businesses in the Americas and Asia, paving the way for overseas expansion, and carried out multiple M&A transactions, mainly in the Americas, expanding its fee-based business. In private equity, the company continued to build a track record of investments and divestments in Japan and made multiple new investments in the Americas and Asia. It also launched a new concession business and participated in Japan’s first full-scale privately operated airport management business.」

「Segment assets rose 13% from the end of the previous consolidated fiscal year to ¥870,257 million, due to a large new investment in an affiliate in the environmental energy business.」

「Segment assets rose 12% from the end of the previous consolidated fiscal year to ¥863,640 million, due to a large new investment in an affiliate in the environmental energy business.」

「Business-use assets held, excluding leased assets, primarily relate to the Business Investment segment. During the current consolidated fiscal year, the company invested ¥66,697 million, mainly in solar power generation businesses.」

「During the first nine months of the current consolidated fiscal year, the company constructed the ORIX Tsu Solar Power Plant in Tsu, Mie Prefecture, and the ORIX Ueno 1-chome Building in Taito-ku, Tokyo.」

「During the first quarter of the current consolidated fiscal year, the company constructed the ORIX Tsu Solar Power Plant in Tsu, Mie Prefecture.」

「Under “New Investments in Key Areas,” the company has designated the promotion of environmental energy businesses and private equity investments in Japan and overseas, expansion of its Asian network, global development of its asset management business, and expansion of its concession business as key areas, and will continue to pursue these initiatives.」