ORIX (8591) investor relations material

Strategic vision, evolution, and business model transformation

• Emphasizes a shift toward a third-party asset management model, aiming to double fee income by 2035 and achieve 15% ROE and JPY 1 trillion net income, leveraging both balance sheet and external capital.

• Focuses on portfolio optimization, risk management sophistication, digital innovation, and new business creation, with a strong push for business model transformation through deepening and evolving core business models.

• Diversification, adaptability, and continuous evolution through business diversification and geographic expansion are highlighted as core strengths, enabling sustainable growth and resilience.

• New management structure with five business units and CxO system enhances resource allocation, accountability, and faster decision-making, with clear roles across business units and corporate functions.

• Capital allocation balances growth investment and shareholder returns, including disciplined share buybacks and dividends, with a focus on improving ROE and EPS growth.

Regional and business unit strategies

• Japan and APAC unit leverages diversified businesses, expanding business solutions and private equity, with a focus on replicating successful models across APAC and strategic integration to drive ROE improvement.

• Infrastructure business targets becoming a core growth driver, scaling renewable energy, transportation, real estate, and public infrastructure, with a focus on asset rotation, asset management, and digitalization.

• U.S. and Europe business shifts to a capital-efficient, fee-generating asset management model, integrating platforms for global reach and leveraging complementary strengths in public and private markets.

• Strategic partnerships, such as with QIA, and targeted M&A or asset acquisitions are used to expand capabilities and AUM, especially in private assets.

• Strategic initiatives to accelerate AUM growth include origination capability, operational excellence, and global investor access.

Financial guidance and growth targets

• Targets JPY 100 trillion in assets under management and aims to grow fee income from JPY 474 billion to more than double by 2035, with private asset fee income expected to grow at mid-to-high double digits.

• ROE improved from 7.9% to 12.2% in Japan and APAC, with auto and Rentec businesses achieving ROE around 19%, and private equity delivering IRR of 25% and MOIC of 3.5x.

• U.S. platform reset completed, with stable net interest margin and growing fee income as AUM expands, aiming for higher quality earnings and a shift to recurring management and incentive fees.

• Life insurance business retained for its growth, synergy, and potential to enhance group ROE, with measures underway to improve its ROE to double digits.

• Fee income from private and real assets is expected to be the main driver for achieving the 2035 ROE target.