SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE Act of 1934
For the month of February, 2003.
ORIX Corporation
(Translation of Registrant's Name into English)
3-22-8 Shiba, Minato-Ku, Tokyo, JAPAN
(Address of Principal Executive Offices)
------------------------
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F [X] Form 40-F [ ]
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934.)
Yes [ ] No [X]
Table of Documents Filed
Page
----
1. ORIX's Third Quarter Consolidated Financial Results (April 1, 3
2002 - December 31, 2002) filed with the Tokyo Stock Exchange
on Wednesday, February 5, 2003.
---------------------------------
Consolidated Financial Results
April 1, 2002 - December 31, 2002
---------------------------------
February 5, 2003
In preparing its consolidated financial information, ORIX Corporation and its
subsidiaries have complied with accounting principles generally accepted in the
United States of America, except as modified to account for stock splits in
accordance with the usual practice in Japan.
U.S. Dollar amounts have been calculated at Yen 119.90 to $1.00, the approximate
exchange rate prevailing at December 31, 2002.
These documents may contain forward-looking statements about expected future
events and financial results that involve risks and uncertainties. Such
statements are based on our current expectations and are subject to
uncertainties and risks that could cause actual results to differ materially
from those described in the forward-looking statements. Factors that could
cause such a difference include, but are not limited to, those described under
"Risk Factors" in the Company's annual report on Form 20-F filed with the
United States Securities and Exchange Commission.
The Company expects that it will be a "passive foreign investment company"
under the U.S. Internal Revenue Code. A U.S. holder of the shares of the
Company is therefore subject to special rules of taxation in respect of certain
dividend, gain or other income on such shares. Investors should consult their
tax advisors with respect to such rules, which are summarized in the Company's
annual report.
For further Information please contact:
Corporation Communications
ORIX Corporation
3-22-8 Shiba, Minato-ku, Tokyo 105-8683
JAPAN
Tel: (03) 5419-5102 Fax: (03) 5419-5901
E-mail: leslie_hoy@orix.co.jp
Consolidated Financial Results from April 1, 2002 to December 31, 2002
(U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries)
Corporate Name: ORIX Corporation
Listed Exchanges: Tokyo Stock Exchange (Securities No. 8591)
Osaka Securities Exchange
Nagoya Stock Exchange
New York Stock Exchange (Trading Symbol: IX)
Head Office: Tokyo JAPAN
Tel: (03)5419-5102
(URL http://www.orix.co.jp/ir_e/ir_index.htm)
1. Performance Highlights for the Nine Months Ended December 31, 2002 and
2001, and the Year Ended March 31, 2002
(1) Performance Highlights - Operating Results (Unaudited)
(millions of JPY)*
Total Year-on-Year Operating Year-on-Year Income before Year-on-Year
Revenues Change Income Change Income Taxes Change
-------- ------------ --------- ------------ ------------- ------------
December 31, 2002 497,897 3.6% 55,622 3.8% 61,298 14.3%
December 31, 2001 480,635 -- 53,562 -- 53,651 --
March 31, 2002 658,462 -- 73,369 -- 73,039 --
Year-on-Year Basic Diluted
Net Income Change Earnings Per Share Earnings Per Share
---------- ------ ------------------ ------------------
December 31, 2002 35,212 20.2% 420.87 396.59
December 31, 2001 29,298 -- 357.61 342.95
March 31, 2002 40,269 -- 489.19 467.11
1. Equity in Net Income (Loss) of and Gain (Loss) on Sales of Affiliates was
a net gain of JPY 5,676 million for the nine months ended December 31,
2002, a net gain of JPY 89 million for the nine months ended December 31,
2001 and a net loss of JPY 330 million for the year ended March 31, 2002.
2. The average number of shares was 83,666,145 for the nine months ended
December 31, 2002, 81,927,225 for the nine months ended December 31, 2001
and 82,318,387 for the year ended March 31, 2002.
3. Changes in Accounting Principles Yes (x) No ( ) (new accounting adoption)
4. Changes in Numbers of Consolidated Subsidiaries and Affiliates
Yes (x) No ( )
Additions: Consolidated Subsidiaries 20, Affiliates 7
Deletions: Consolidated Subsidiaries 3, Affiliates 3
Note: Unless otherwise stated, all amounts shown herein are in millions of
Japanese yen or millions of U.S. dollars, except for Per Share amounts
which are in single yen.
(2) Performance Highlights - Financial Position (Unaudited)
Shareholders' Shareholders' Shareholders'
Total Assets Equity Equity Ratio Equity Per Share
------------ ------------- ------------ ----------------
December 31, 2002 6,025,781 506,605 8.4% 6,053.07
December 31, 2001 6,365,717 491,187 7.7% 5,874.75
March 31, 2002 6,350,219 502,508 7.9% 6,007.52
1. The number of shares (excluding treasury stock) was 83,693,803 as of
December 31, 2002, 83,609,864 as of December 31, 2001 and 83,646,466 as of
March 31, 2002.
2. Forecasts for the Year Ending March 31, 2003 (Unaudited)
Total Income before
Fiscal Year Revenues Income Taxes Net Income
----------- -------- ------------ ----------
March 31, 2003 680,000 80,000 46,000
Note: Basic Earnings Per Share is forecasted to be JPY 549.62
Summary of Consolidated Financial Results
1. Nine Months Ended December 31, 2002
Financial Highlights
Income before Income Taxes.........61,298 million yen (up 14% year on year)
Net Income.........................35,212 million yen (up 20% year on year)
Earnings Per Share (Basic) ........420.87 yen (up 18% year on year)
Earnings Per Share (Diluted) ......396.59 yen (up 16% year on year)
Shareholders' Equity Per Share ....6,053.07 yen (up 1% from March 31, 2002)
ROE (annualized) ..................9.3% (December 31, 2001: 8.2%)
ROA (annualized)...................0.76% (December 31, 2001: 0.65%)
Revenues: 497,897 million yen (up 4% year on year)
"Residential condominium sales" increased due to the steady performance of the
condominium development business in all three quarters of the nine months ended
December 31, 2002. In addition, "other operating revenues" grew due to the
listing and sale of units of a real estate investment trust (J-REIT) in the
first quarter, and as a result of revenues from companies in which investments
were made as part of ORIX's corporate restructuring business. "Interest on
loans and investment securities" rose due to an increase in the balance of
housing loans and consumer card loans to individuals in Japan. While there was
a decrease in revenues in the life insurance business owing to a change in
business strategy, overall revenues were up 4% year on year to 497,897 million
yen.
Expenses: 442,275 million yen (up 4% year on year)
Lower interest rates and a decrease in debt led to a drop in "interest
expense," while "life insurance costs" declined in line with lower life
insurance revenues." On the other hand, "selling, general and administrative
expenses" increased mainly due to acquisitions that were made in the second
half of the last fiscal year, and increased costs associated with expansion of
consumer lending operations. In addition, the write-down of a golf course under
"write-downs of long-lived assets" in the second quarter and the increase in
"costs of residential condominium sales" that accompanied the increase in
revenues from condominium development, contributed to an increase in overall
expenses of 4% year on year to 442,275 million yen.
Net Income: 35,212 million yen (up 20% year on year)
In addition to the 4% increase in operating income, a 5,676 million yen gain in
"equity in net income (loss) of and gain (loss) on sales of affiliates," and a
"cumulative effect of a change in accounting principle" resulted in a 20% rise
in net income year on year to 35,212 million yen.
Operating Assets: 5,301,801 million yen (down 4% on March 31, 2002)
As a result of the careful selection of good quality assets, new business
volumes increased in areas related to corporate real estate-related finance and
the consumer card loan operations. However, some direct financing lease and
loan assets were securitized, and some "investment in securities" were
liquidated in the life insurance operations. In addition, "other operating
assets" declined due to the listing and sale of units of a J-REIT in the first
quarter. As a result, operating assets were 5,301,801 million yen, down 4% on
March 31, 2002.
-2-
Segment Information ("Segment profits" refer to income before income taxes)
Domestic Operations
Corporate Finance: While acquisitions added new assets, the securitization of
direct financing leases resulted in flat asset growth in this segment. Segment
profits were up 2%, or 616 million yen, year on year to 36,062 million yen,
with the automobile leasing operations enjoying higher profits.
Equipment Operating Leases: Segment profits were down 39% to 4,572 million yen
year on year. The automobile rental operations performed well, but the rental
of precision measuring equipment continued to suffer due to a decrease in
demand as a result of a weak business environment.
Real Estate-Related Finance: Segment profits jumped to 12,664 million yen from
2,155 million yen in the same period of the previous fiscal year due to the
continued strong contribution from corporate non-recourse loans and consumer
housing loans, an increase in profits from loan servicing, and proceeds from
the first quarter listing and sale of a J-REIT.
Real Estate: The condominium development business continued to perform well,
especially in the third quarter. Segment revenues also included the gains of
the sales of some office buildings, and revenues from rental properties and
building maintenance operations. However, this segment still experienced a loss
of 4,466 million yen compared with a profit of 4,303 million yen in the nine
months ended December 31, 2002 due to a 14,665 million yen write-down of a golf
course in the second quarter.
Life Insurance: Segment profits came in at 2,949 million yen compared to 3,889
million yen in the nine months ended December 31, 2001 (5,764 million yen for
the fiscal year ended March 31, 2002), with a slight loss in the third quarter
due to a decrease in gains on investment securities.
Other: Segment profits rose sharply to 10,155 million yen compared to 3,244
million yen thanks to an increase in the balance of consumer card loans as well
as a contribution from the securitization of loans in the card loan business in
the second quarter. In addition, Fuji Fire & Marine Insurance Co., Limited, an
affiliate accounted for by the equity method, contributed to earnings in the
third quarter.
Foreign Operations
The Americas: As a result of instability in the U.S. economy and deteriorating
corporate earnings, "provisions for doubtful receivables and possible loan
losses" and the "write-downs of securities" of high yield and other bonds were
recorded, while the commercial mortgage-backed securities operations
experienced lower earnings. However, progress in restructuring resulted in
decreased losses at ORIX Financial Services, Inc. The segment lost 590 million
yen compared to a segment loss of 338 million yen in the same period of the
previous fiscal year.
Asia and Oceania: Asia has been steadily recovering in the wake of the Asian
Currency Crisis, and companies throughout the region are experiencing growing
earnings. In particular, the automobile leasing operations performed well,
resulting in an increase in segment profits to 5,859 million yen compared to
4,496 million yen in the nine months ended December 31, 2001.
Europe: While the sale of investment securities contributed to profits in the
same period of the previous fiscal year, no such gains were made in this fiscal
year. This, combined with the decrease in assets for the nine months ended
December 31, 2002 resulted in a segment loss of 722 million yen compared to a
segment profit of 1,474 million yen in the same period of the previous year.
-3-
2. Summary of Third Quarter (Three Months Ended December 31, 2002)
In the third quarter, revenues increased 15,077 million yen, or 10%, year on
year, to 163,169 million yen. This was primarily due to the strong performance
of the condominium development business. In addition, "other operating
revenues" increased due to revenues from companies in which investments were
made as part of ORIX's corporate restructuring business. While there was a
decrease in "interest expense" and "write-downs of securities," "selling,
general and administrative expenses" were up and "costs of residential
condominium sales" and "other operating expenses" increased in line with
revenue growth. Overall, expenses increased 8%, or 10,024 million yen, year on
year, to 142,182 million yen. Operating income rose by 32%, or 5,053 million
yen, to 20,987 million yen compared with the third quarter of the previous
fiscal year. Furthermore, an increase in "equity in net income (loss) of and
gain (loss) on sales of affiliates" in the third quarter contributed to a 42%
increase in income before income taxes to 23,302 million yen and a 34% rise in
net income to 12,449 million yen.
3. Outlook and Forecasts for the Fiscal Year Ending March 31, 2003
While the economic environment in Japan and overseas remains severe, ORIX's
earnings for the nine months ended December 31, 2002 demonstrated comparatively
stable growth. For the fiscal year ending March 31, 2003, we forecast
"revenues" of 680,000 million yen (up 3% compared with the fiscal year ended
March 31, 2002), "income before income taxes" of 80,000 million yen (up 10%),
and "net income" of 46,000 million yen (up 14%). These forecasts are unchanged
from those announced on April 25, 2002 at the time of the earnings announcement
for the fiscal year ended March 31, 2002.
-4-
Consolidated Financial Highlights
(For the Nine Months Ended December 31, 2002 and 2001, and the Year Ended March 31, 2002)
(Unaudited)
(millions of JPY, except for per share data)
Change Year Year
from -on- -on-
December March Year December March Year
Operating Assets 31, 2002 31, 2002 Change 31, 2001 31, 2001 Change
---------------------------------------------------------------------------------------------------------
Investment in Direct Financing Leases 1,634,494 99% 89% 1,839,899 1,658,669 100%
Installment Loans 2,374,664 104% 104% 2,274,515 2,273,280 123%
Investment in Operating Leases 454,468 96% 93% 488,662 474,491 105%
Investment in Securities 695,319 81% 71% 972,581 861,336 91%
Other Operating Assets 142,856 55% 76% 187,654 260,373 197%
------------------------------------------------- --- --- --------- --------- ---
Total 5,301,801 96% 92% 5,763,311 5,528,149 110%
-------------------------------------------------------------------------------------------------------
Operating Results
-------------------------------------------------------------------------------------------------------
Total Revenues 497,897 -- 104% 480,635 658,462 112%
Income before Income Taxes 61,298 -- 114% 53,651 73,039 123%
Net Income 35,212 -- 120% 29,298 40,269 118%
Earnings Per Share
Income before Cumulative Effect of a Change
in Accounting Principle
Basic 397.72 -- 112% 355.99 487.57 117%
Diluted 374.82 -- 110% 341.40 465.57 116%
Net Income
Basic 420.87 -- 118% 357.61 489.19 117%
Diluted 396.59 -- 116% 342.95 467.11 116%
Shareholders' Equity Per Share 6,053.07 101% 103% 5,874.75 6,007.52 106%
--------------------------------------------------------------------------------------------------------
Financial Position
-------------------------------------------------------------------------------------------------------
Shareholders' Equity 506,605 101% 103% 491,187 502,508 109%
Number of Shares ('000)
(excluding treasury stock) 83,694 100% 100% 83,610 83,646 102%
Long-and Short-Term Debt and Deposits 4,393,599 94% 93% 4,732,736 4,679,566 115%
Total Assets 6,025,781 95% 95% 6,365,717 6,350,219 114%
Shareholders' Equity Ratio 8.4% 106% 109% 7.7% 7.9% 95%
Return on Equity (annualized) 9.3% 111% 113% 8.2% 8.4% 109%
--------------------------------------------------------------------------------------------------------
New Business Volumes
-------------------------------------------------------------------------------------------------------
Direct Financing Leases
New Receivables Added 777,216 -- 91% 854,387 1,083,070 129%
New Equipment Acquisitions 695,496 -- 91% 763,803 980,379 136%
Installment Loans 970,830 -- 96% 1,013,701 1,340,400 181%
Operating Leases 89,039 -- 70% 127,827 146,203 102%
Investment in Securities 121,122 -- 45% 270,748 348,347 88%
Other Operating Assets 78,756 -- 65% 121,434 204,121 158%
--------------------------------------------------------------------------------------------------------
-5-
Condensed Consolidated Statements of Income
(For the Nine Months Ended December 31, 2002 and 2001, and the Year Ended March 31, 2002)
(Unaudited)
(millions of JPY, millions of US$)
Year Year
Nine Months -on- Nine Months Year ended -on- U.S. dollars
ended December Year ended December March Year December
31, 2002 Change 31, 2001 31, 2002 Change 31, 2002
-------------------- -------------- ------------------- ------------
Total Revenues: 497,897 104% 480,635 658,462 112% 4,153
-------------------- -------- ------------------- -----
Direct Financing Leases 93,359 104% 89,972 121,914 100% 779
Operating Leases 91,754 102% 90,378 120,807 106% 765
Interest on Loans and Investment
Securities 95,436 109% 87,877 121,962 111% 796
Brokerage Commissions and Gains on
Investment Securities 9,282 79% 11,762 18,367 152% 77
Life Insurance Premiums and Related
Investment Income 100,153 87% 115,660 152,333 96% 835
Residential Condominium Sales 51,724 128% 40,439 58,078 157% 431
Interest Income on Deposits 410 33% 1,254 1,374 55% 3
Other Operating Revenues 55,779 129% 43,293 63,627 203% 467
------------------- -------- ------------------- -----
Total Expenses: 442,275 104% 427,073 585,093 111% 3,689
------------------- -------- ------------------- -----
Interest Expense 54,259 76% 71,671 90,348 83% 453
Depreciation - Operating Leases 58,597 103% 56,813 77,047 113% 489
Life Insurance Costs 91,216 85% 106,931 139,786 97% 761
Costs of Residential Condominium Sales 43,308 127% 33,998 49,517 154% 361
Other Operating Expenses 28,263 135% 20,961 29,614 257% 236
Selling, General and Administrative
Expenses 105,099 116% 90,553 126,316 125% 876
Provision for Doubtful Receivables and
Possible Loan Losses 37,388 117% 31,941 51,367 115% 312
Write-downs of Long-Lived Assets 14,665 1058% 1,386 2,716 66% 122
Write-downs of Securities 7,916 61% 13,054 19,742 182% 66
Foreign Currency Transaction Loss
(Gain), Net 1,564 -- (235) (1,360) -- 13
------------------- -------- ------------------- -----
Operating Income 55,622 104% 53,562 73,369 128% 464
------------------- -------- ------------------- -----
Equity in Net Income (Loss) of
and Gain (Loss) on Sales of Affiliates 5,676 6378% 89 (330) -- 47
------------------- -------- ------------------- -----
Income before Income Taxes 61,298 114% 53,651 73,039 123% 511
------------------- -------- ------------------- -----
Provision for Income Taxes 28,023 114% 24,486 32,903 131% 233
------------------- -------- ------------------- -----
Income before Cumulative Effect of a
Change in Accounting Principle 33,275 114% 29,165 40,136 118% 278
------------------- -------- ------------------- -----
Cumulative Effect of a Change in
Accounting Principle 1,937 1456% 133 133 -- 16
------------------- -------- ------------------- -----
Net Income 35,212 120% 29,298 40,269 118% 294
=================== ======== =================== =====
Note: 1. Comprehensive Income under FASB Statement No.130 ("Reporting Comprehensive Income") was an
increase of JPY 5,044 million (US$42 million) for the nine months ended December 31, 2002, an
increase of JPY 11,262 million for the nine months ended December 31, 2001 and an increase of JPY
22,277 million for the year ended March 31, 2002.
2. On April 1, 2002, as a result of the adoption of FASB Statement No. 141 ("Business
Combinations"), the Company and its subsidiaries recorded a transition gain arising from the
write-off of unamortized deferred credits of JPY1,937 million (US$16 million) as of March 31,
2002 as the "Cumulative Effect of a Change in Accounting Principle." Upon initial adoption of
FASB Statement No. 142 ("Goodwill and Other Intangible Assets"), the Company and its
subsidiaries have completed the transitional impairment test for goodwill. No impairment loss
was recorded for goodwill.
3. As of the beginning of the previous fiscal year ended March 31, 2002, a transition
adjustment of JPY 133 million as a result of the adoption of FASB Statement No.133 ("Accounting
for Derivative Instruments and Hedging Activities") was recorded as "Cumulative Effect of a
Change in Accounting Principle".
4. "Residential Condominium Sales" and "Costs of Residential Condominium Sales" were
reclassified from "Other Operating Revenues" and "Other Operating Expenses," respectively.
-6-
Condensed Consolidated Statements of Income
(For the Three Months Ended December 31, 2002 and 2001)
(Unaudited)
(millions of JPY, millions of US$)
Year
Three Months -on- Three Months U.S. dollars
ended December year ended December December
31, 2002 Change 31, 2001 31, 2002
----------------------- -------------- ------------
Total Revenues: 163,169 110% 148,092 1,361
----------------------- ---------- --------
Direct Financing Leases 29,880 95% 31,445 249
Operating Leases 30,675 97% 31,735 256
Interest on Loans and Investment Securities 31,395 101% 31,119 262
Brokerage Commissions and Gains on Investment Securities 1,355 41% 3,266 11
Life Insurance Premiums and Related Investment Income 28,321 95% 29,748 236
Residential Condominium Sales 21,982 296% 7,420 183
Interest Income on Deposits 98 40% 244 1
Other Operating Revenues 19,463 148% 13,115 163
----------------------- ---------- --------
Total Expenses: 142,182 108% 132,158 1,186
----------------------- ---------- --------
Interest Expense 17,555 81% 21,695 146
Depreciation - Operating Leases 19,744 102% 19,430 165
Life Insurance Costs 26,792 96% 28,002 223
Costs of Residential Condominium Sales 17,596 272% 6,462 147
Other Operating Expenses 10,114 152% 6,657 84
Selling, General and Administrative Expenses 35,270 109% 32,294 295
Provision for Doubtful Receivables and Possible Loan Losses 12,421 106% 11,753 104
Write-downs of Long-Lived Assets -- -- -- --
Write-downs of Securities 2,174 37% 5,803 18
Foreign Currency Transaction Loss (Gain), Net 516 832% 62 4
----------------------- ---------- --------
Operating Income 20,987 132% 15,934 175
----------------------- ---------- --------
Equity in Net Income (Loss) of
and Gain (Loss) on Sales of Affiliates 2,315 448% 517 19
----------------------- ---------- --------
Income before Income Taxes 23,302 142% 16,451 194
----------------------- ---------- --------
Provision for Income Taxes 10,853 151% 7,189 90
----------------------- ---------- --------
Income before Cumulative Effect of a Change
in Accounting Principle 12,449 134% 9,262 104
----------------------- ---------- --------
Cumulative Effect of a Change in Accounting Principle -- -- -- --
----------------------- ---------- --------
Net Income 12,449 134% 9,262 104
======================= ========== ========
-7-
Condensed Consolidated Balance Sheets
(As of December 31, 2002 and March 31, 2002)
(Unaudited)
(millions of JPY, millions of US$)
U.S. dollars
December March December
Assets 31, 2002 31, 2002 31, 2002
-------------------------------------------------------------------------------
Cash and Cash Equivalents 163,311 354,748 1,362
Restricted Cash and Cash
Equivalents 19,172 20,189 160
Time Deposits 1,405 1,050 12
Investment in Direct
Financing Leases 1,634,494 1,658,669 13,632
Installment Loans 2,374,664 2,273,280 19,805
Allowance for Doubtful
Receivables on
Direct Financing Leases and
Possible Loan Losses (136,833) (152,887) (1,141)
Investment in Operating Leases 454,468 474,491 3,790
Investment in Securities 695,319 861,336 5,799
Other Operating Assets 142,856 260,373 1,191
Investment in Affiliates 130,150 86,346 1,085
Other Receivables 125,677 124,022 1,048
Advances 182,315 158,089 1,521
Prepaid Expenses 41,432 37,406 346
Office Facilities 77,501 76,987 646
Other Assets 119,850 116,120 1,001
--------- --------- -------
Total 6,025,781 6,350,219 50,257
========= ========= =======
Liabilities and Shareholders' Equity
-----------------------------------------------------------------------------
Short-Term Debt 1,387,957 1,644,462 11,576
Deposits 268,018 225,243 2,235
Trade Notes and Accounts
Payable 225,905 244,871 1,884
Accrued Expenses 82,656 92,266 689
Policy Liabilities 598,832 602,664 4,994
Income Taxes 147,584 153,076 1,231
Deposits from Lessees 70,600 75,268 589
Long-Term Debt 2,737,624 2,809,861 22,834
--------- --------- ------
Total Liabilities 5,519,176 5,847,711 46,032
--------- --------- ------
Common Stock 52,067 51,854 434
Additional Paid-in Capital 70,034 69,823 584
Retained Earnings
Legal Reserve 2,220 2,220 19
Retained Earnings 434,133 400,175 3,621
Accumulated Other
Comprehensive Loss (43,608) (13,440) (364)
Treasury Stock (8,241) (8,124) (69)
--------- --------- ------
Shareholders' Equity 506,605 502,508 4,225
--------- --------- ------
Total 6,025,781 6,350,219 50,257
========= ========= ======
U.S. dollars
December March December
31, 2002 31, 2002 31, 2002
-------- -------- ------------
Note: 1. Accumulated Other
Comprehensive Loss
Net unrealized gains on
investment in securities 969 14,756 8
Minimum pension liability
adjustments (5,824) (6,834) (49)
Cumulative translation
adjustments (30,426) (14,800) (254)
Net unrealized losses on
derivative instruments (8,327) (6,562) (69)
2. The line items "Income Taxes: Current" and "Income Taxes: Deferred"
were combined into "Income Taxes" from the second quarter of the present
fiscal year.
-8-
Segment Information
(For the Nine Months Ended December 31, 2002 and 2001, and the Year Ended March 31, 2002)
(Unaudited)
(millions of JPY)
Nine months ended December 31, 2002 Nine months ended December 31, 2001 Year ended March 31, 2002
----------------------------------- ----------------------------------- --------------------------------
Income Income Income
before before before
Income Operating Income Operating Income Operating
Revenues Taxes Assets Revenues Taxes Assets Revenues Taxes Assets
------- ------ --------- -------- ------ --------- -------- ------ ---------
Domestic Operations
Corporate Finance 95,691 36,062 1,963,548 85,776 35,446 2,185,994 118,794 48,066 1,960,380
Equipment Operating Leases 49,866 4,572 145,234 50,697 7,487 145,626 67,319 9,906 147,444
Real Estate-Related
Finance 36,955 12,664 908,821 20,252 2,155 935,426 31,582 5,654 1,012,896
Real Estate 75,619 (4,466) 307,599 57,393 4,303 324,973 85,516 5,842 326,473
Life Insurance 100,153 2,949 578,744 117,723 3,889 574,403 154,296 5,764 543,738
Other 42,159 10,155 398,435 33,917 3,244 350,161 49,139 4,941 352,433
------- ------ --------- ------- ------ --------- ------- ------ ---------
Sub-Total 400,443 61,936 4,302,381 365,758 56,524 4,516,583 506,646 80,173 4,343,364
Foreign Operations
The Americas 40,287 (590) 691,100 56,161 (338) 818,723 75,195 810 794,330
Asia and Oceania 41,381 5,859 454,123 43,035 4,496 441,432 56,677 5,433 435,093
Europe 9,593 (722) 78,376 12,138 1,474 126,348 14,716 600 113,844
------- ------ --------- ------- ------ --------- ------- ------ ---------
Sub-Total 91,261 4,547 1,223,599 111,334 5,632 1,386,503 146,588 6,843 1,343,267
------- ------ --------- ------- ------ --------- ------- ------ ---------
Segment Total 491,704 66,483 5,525,980 477,092 62,156 5,903,086 653,234 87,016 5,686,631
------- ------ --------- ------- ------ --------- ------- ------ ---------
Difference between Segment
Totals and Consolidated
Amounts 6,193 (5,185) (224,179) 3,543 (8,505) (139,775) 5,228 (13,977) (158,482)
------- ------ --------- ------- ------ --------- ------- ------ ---------
Consolidated Amounts 497,897 61,298 5,301,801 480,635 53,651 5,763,311 658,462 73,039 5,528,149
======= ====== ========= ======= ====== ========= ======= ====== =========
(millions of US$)
U.S. dollars December 31, 2002
--------------------------------
Income
before
Income Operating
Revenues Taxes Assets
-------- ------ ---------
Domestic Operations
Corporate Finance 798 301 16,377
Equipment Operating Leases 416 38 1,211
Real Estate-Related Finance 308 106 7,580
Real Estate 631 (37) 2,565
Life Insurance 835 25 4,827
Other 352 83 3,323
----- --- ------
Sub-Total 3,340 516 35,883
Foreign Operations
The Americas 336 (5) 5,763
Asia and Oceania 345 49 3,788
Europe 80 (6) 654
----- --- ------
Sub-Tota 761 38 10,205
----- --- ------
Segment Total 4,101 554 46,088
----- --- ------
Difference between Segment
Totals and Consolidated
Amounts 52 (43) (1,869)
----- --- ------
Consolidated Amounts 4,153 511 44,219
===== === ======
Note: Quartely comparison of segment information is presented in the
accompanying "Key Quarterly Financial Data" located on p.11.
-9-
Key Quarterly Financial Data (Unaudited) (millions of JPY)
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Balance Sheet Data Q1 (01/4-6) Q2 (01/7-9) Q3(01/10-12) Q4(02/1-3) Q1(02/4-6) Q2(02/7-9) Q3(02/10-12)
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1) Investment in Direct
Financing Leases 1,622,953 1,821,868 1,839,899 1,658,669 1,646,932 1,669,623 1,634,494
Domestic 1,191,040 1,423,710 1,410,859 1,255,537 1,283,552 1,305,846 1,278,175
Foreign 431,913 398,158 429,040 403,132 363,380 363,777 356,319
2) Installment Loans 1,918,389 1,996,542 2,274,515 2,273,280 2,327,354 2,326,189 2,374,664
Domestic 1,511,925 1,585,267 1,840,077 1,840,289 1,898,108 1,932,184 1,986,182
Foreign 406,464 411,275 434,438 432,991 429,246 394,005 388,482
3) Investment in Operating
Leases 464,276 468,841 488,662 474,491 451,012 460,103 454,468
Domestic 335,833 347,725 357,459 338,719 327,391 339,403 340,997
Foreign 128,443 121,116 131,203 135,772 123,621 120,700 113,471
4) Investment in Securities 963,493 972,816 972,581 861,336 759,406 717,500 695,319
Domestic 758,065 762,063 753,028 651,702 565,409 520,005 505,995
Foreign 205,428 210,753 219,553 209,634 193,997 197,495 189,324
5) Other Operating Assets 132,822 130,409 187,654 260,373 143,064 129,311 142,856
Domestic 107,666 106,557 175,144 248,216 132,217 118,558 132,847
Foreign 25,156 23,852 12,510 12,157 10,847 10,753 10,009
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Total Operating Assets 5,101,933 5,390,476 5,763,311 5,528,149 5,327,768 5,302,726 5,301,801
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Allowance for Doubtful
Receivables on Direct
Financing Leases
and Possible Loan Losses (141,663) (145,856) (150,100) (152,887) (150,264) (136,961) (136,833)
Allowance/Investment in
Direct Financing Leases
and Installment Loans 4.0% 3.8% 3.6% 3.9% 3.8% 3.4% 3.4%
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Total Assets 5,693,269 6,002,015 6,365,717 6,350,219 6,091,100 6,050,290 6,025,781
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Short-Term Debt, Long-Term
Debt and Deposits 4,143,990 4,409,036 4,732,736 4,679,566 4,489,605 4,425,331 4,393,599
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Policy Liabilities 579,612 598,871 597,412 602,664 600,144 601,815 598,832
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Total Liabilities 5,225,390 5,546,868 5,874,530 5,847,711 5,592,427 5,550,564 5,519,176
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Shareholders' Equity 467,879 455,147 491,187 502,508 498,673 499,726 506,605
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Total Liabilities &
Shareholders' Equity 5,693,269 6,002,015 6,365,717 6,350,219 6,091,100 6,050,290 6,025,781
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Income Statement Data Q1 (01/4-6) Q2 (01/7-9) Q3(01/10-12) Q4(02/1-3) Q1(02/4-6) Q2(02/7-9) Q3(02/10-12)
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Revenues
1) Direct Financing Leases 29,611 28,916 31,445 31,942 30,742 32,737 29,880
Domestic 19,145 19,500 22,583 22,923 21,987 24,854 22,503
Foreign 10,466 9,416 8,862 9,019 8,755 7,883 7,377
2) Operating Leases 28,354 30,289 31,735 30,429 30,534 30,545 30,675
Domestic 20,419 22,672 22,851 21,790 22,012 21,808 21,321
Foreign 7,935 7,617 8,884 8,639 8,522 8,737 9,354
3) Interest on Loans and
Investment Securities 28,898 27,860 31,119 34,085 30,757 33,284 31,395
Interest on loans 22,861 22,572 25,575 28,724 26,203 29,323 27,634
Domestic 15,218 14,814 17,561 22,542 19,795 22,089 21,506
Foreign 7,643 7,758 8,014 6,182 6,408 7,234 6,128
Interest on investment
securities 6,037 5,288 5,544 5,361 4,554 3,961 3,761
Domestic 1,105 1,000 641 787 319 162 180
Foreign 4,932 4,288 4,903 4,574 4,235 3,799 3,581
4) Brokerage Commissions and
Gains on Investment
Securities 4,045 4,451 3,266 6,605 5,127 2,800 1,355
Brokerage commissions 903 726 740 571 774 569 536
Gains on investment securities 3,142 3,725 2,526 6,034 4,353 2,231 819
5) Life Insurance Premiums
and Related Investment Income 40,287 45,625 29,748 36,673 32,946 38,886 28,321
Life insurance premiums 35,345 42,347 26,652 31,135 28,745 34,503 25,184
Related investment income 4,942 3,278 3,096 5,538 4,201 4,383 3,137
6) Residential Condominium Sales 28,290 4,729 7,420 17,639 11,666 18,076 21,982
Domestic 28,290 4,729 7,420 17,639 11,666 18,076 21,982
Foreign -- -- -- -- -- -- --
7) Interest Income on Deposits 473 537 244 120 177 135 98
8) Other Operating Revenues 19,409 10,769 13,115 20,334 19,008 17,308 19,463
Domestic 17,381 6,254 10,443 17,574 17,015 14,867 16,243
Foreign 2,028 4,515 2,672 2,760 1,993 2,441 3,220
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Total Revenues 179,367 153,176 148,092 177,827 160,957 173,771 163,169
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-10-
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Income Statement Data Q1 (01/4-6) Q2 (01/7-9) Q3(01/10-12) Q4(02/1-3) Q1(02/4-6) Q2(02/7-9) Q3(02/10-12)
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Expenses
1) Interest Expense 26,128 23,848 21,695 18,677 18,974 17,730 17,555
2) Depreciation--Operating
Leases 18,692 18,691 19,430 20,234 19,429 19,424 19,744
3) Life Insurance Costs 36,123 42,806 28,002 32,855 29,649 34,775 26,792
4) Costs of Residential
Condominium Sales 23,277 4,259 6,462 15,519 9,985 15,727 17,596
5) Other Operating Expenses 10,729 3,575 6,657 8,653 8,379 9,770 10,114
6) Selling, General and
Administrative Expenses 29,591 28,668 32,294 35,763 34,163 35,666 35,270
7) Provision for Doubtful
Receivables and Possible
Loan Losses 9,634 10,554 11,753 19,426 12,803 12,164 12,421
8) Write-downs of Long-Lived
Assets -- 1,386 -- 1,330 -- 14,665 --
9) Write-downs of Securities 2,132 5,119 5,803 6,688 2,166 3,576 2,174
10) Foreign Currency
Transaction Loss (Gain),
Net 1,142 (1,439) 62 (1,125) 710 338 516
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Total Expenses 157,448 137,467 132,158 158,020 136,258 163,835 142,182
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Operating Income 21,919 15,709 15,934 19,807 24,699 9,936 20,987
Equity in Net Income (Loss)
of and Gain (Loss) on
Sales of Affiliates (870) 442 517 (419) 1,623 1,738 2,315
Income before Income Taxes 21,049 16,151 16,451 19,388 26,322 11,674 23,302
Provision for Income Taxes 10,740 6,557 7,189 8,417 11,374 5,796 10,853
Income before Cumulative
Effect of a Change in
Accounting Principle 10,309 9,594 9,262 10,971 14,948 5,878 12,449
Cumulative Effect of a Change
in Accounting Principle 133 -- -- -- 1,937 -- --
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Net Income 10,442 9,594 9,262 10,971 16,885 5,878 12,449
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New Business Volumes Q1 (01/4-6) Q2 (01/7-9) Q3(01/10-12) Q4(02/1-3) Q1(02/4-6) Q2(02/7-9) Q3(02/10-12)
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Direct Financing Leases:
New receivables added 186,123 455,256 213,008 228,683 237,779 325,817 213,620
Domestic 147,350 402,643 152,409 175,567 172,957 274,881 149,193
Foreign 38,773 52,613 60,599 53,116 64,822 50,936 64,427
Direct Financing Leases:
New equipment acquisitions 159,348 418,665 185,790 216,576 210,819 297,122 187,555
Domestic 126,350 373,740 130,801 167,821 151,062 251,883 128,093
Foreign 32,998 44,925 54,989 48,755 59,757 45,239 59,462
Installment Loans:
New loans added 269,524 271,280 472,897 326,699 341,138 334,070 295,622
Domestic 201,626 226,464 425,048 291,529 273,867 300,963 261,815
Foreign 67,898 44,816 47,849 35,170 67,271 33,107 33,807
Operating Leases:
New equipment acquisitions 47,872 37,336 42,619 18,376 20,870 40,656 27,513
Domestic 41,310 28,301 36,310 11,012 14,128 33,517 20,667
Foreign 6,562 9,035 6,309 7,364 6,742 7,139 6,846
Investment in Securities:
New securities added 88,666 101,526 80,556 77,599 48,907 46,321 25,894
Domestic 77,125 75,703 77,225 74,195 38,346 44,804 23,520
Foreign 11,541 25,823 3,331 3,404 10,561 1,517 2,374
Other Operating Assets:
New assets added 22,226 18,002 81,206 82,687 20,768 29,791 28,197
Domestic 16,428 12,206 76,287 75,982 15,475 29,403 23,504
Foreign 5,798 5,796 4,919 6,705 5,293 388 4,693
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Key Ratios, Per Share Data,
and Employees Q1 (01/4-6) Q2 (01/7-9) Q3(01/10-12) Q4(02/1-3) Q1(02/4-6) Q2(02/7-9) Q3(02/10-12)
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Return on Equity (ROE)* 9.0% 8.3% 7.8% 8.8% 13.5% 4.7% 9.9%
Return on Assets (ROA)* 0.74% 0.66% 0.60% 0.69% 1.09% 0.39% 0.82%
Shareholders' Equity Ratio 8.2% 7.6% 7.7% 7.9% 8.2% 8.3% 8.4%
Debt-to-Equity Ratio (times) 8.9 9.7 9.6 9.3 9.0 8.9 8.7
Shareholders' Equity
Per Share (yen) 5,724.89 5,567.69 5,874.75 6,007.52 5,961.30 5,973.44 6,053.07
Basic EPS (yen) 127.78 117.38 112.63 131.20 201.85 70.27 148.76
Diluted EPS (yen) 122.71 112.79 107.71 123.54 189.95 66.32 140.18
Number of Employees 10,209 11,359 11,307 11,271 11,820 11,859 11,977
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*annualized
-11-
(millions of JPY)
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Segment Information Q1 (01/4-6) Q2 (01/7-9) Q3(01/10-12) Q4(02/1-3) Q1(02/4-6) Q2(02/7-9) Q3(02/10-12)
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Domestic Corporate Finance 27,420 26,897 31,459 33,018 31,465 33,079 31,147
Operations Equipment Operating
Leases 16,854 17,269 16,574 16,622 16,233 16,734 16,899
Real Estate-Related
Finance 6,898 5,955 7,399 11,330 13,995 11,708 11,252
Real Estate 33,160 9,239 14,994 28,123 18,983 26,331 30,305
Life Insurance 41,181 46,123 30,419 36,573 32,946 38,886 28,321
Other 10,975 11,546 11,396 15,222 12,773 14,386 15,000
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Sub-Total 136,488 117,029 112,241 140,888 126,395 141,124 132,924
-------------------------------------------------------------------------------------------------
Foreign The Americas 17,747 19,891 18,523 19,034 14,739 12,536 13,012
Operations Asia and Oceania 17,838 12,512 12,685 13,642 13,741 13,838 13,802
Europe 4,041 4,528 3,569 2,578 3,091 2,742 3,760
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Sub-Total 39,626 36,931 34,777 35,254 31,571 29,116 30,574
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Total Segment Revenues 176,114 153,960 147,018 176,142 157,966 170,240 163,498
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Domestic Corporate Finance 11,403 12,441 11,602 12,620 10,411 14,089 11,562
Operations Equipment Operating
Leases 2,655 2,704 2,128 2,419 1,271 1,708 1,593
Real Estate-Related
Finance 323 80 1,752 3,499 6,106 3,804 2,754
Real Estate 4,587 (1,154) 870 1,539 2,735 (11,542) 4,341
Life Insurance 3,397 839 (347) 1,875 1,282 1,694 (27)
Other 800 1,705 739 1,697 2,554 4,372 3,229
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Sub-Total 23,165 16,615 16,744 23,649 24,359 14,125 23,452
-------------------------------------------------------------------------------------------------
Foreign The Americas (1,100) 1,010 (248) 1,148 1,229 (2,256) 437
Operations Asia and Oceania 798 2,700 998 937 1,673 2,641 1,545
Europe 1,153 368 (47) (874) (545) (65) (112)
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Sub-Total 851 4,078 703 1,211 2,357 320 1,870
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Total Segment Profits (Income before
Income Taxes) 24,016 20,693 17,447 24,860 26,716 14,445 25,322
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Domestic Corporate Finance 1,894,988 2,158,006 2,185,994 1,960,380 2,008,152 1,981,237 1,963,548
Operations Equipment Operating
Leases 136,531 136,713 145,626 147,444 141,905 142,964 145,234
Real Estate-Related
Finance 627,352 647,889 935,426 1,012,896 906,193 908,115 908,821
Real Estate 316,625 333,394 324,973 326,473 293,189 289,919 307,599
Life Insurance 557,393 583,579 574,403 543,738 497,593 570,983 578,744
Other 308,235 322,082 350,161 352,433 389,605 372,273 398,435
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Sub-Total 3,841,124 4,181,663 4,516,583 4,343,364 4,236,637 4,265,491 4,302,381
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Foreign The Americas 808,165 777,428 818,723 794,330 695,351 713,300 691,100
Operations Asia and Oceania 415,803 400,978 441,432 435,093 467,456 431,966 454,123
Europe 149,070 136,441 126,348 113,844 98,200 86,024 78,376
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Sub-Total 1,373,038 1,314,847 1,386,503 1,343,267 1,261,007 1,231,290 1,223,599
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Total Segment Assets 5,214,162 5,496,510 5,903,086 5,686,631 5,497,644 5,496,781 5,525,980
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-12-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ORIX Corporation
Date: February 10, 2003 By /s/ Masaru Hattori
---------------------------------
Masaru Hattori
Corporate Senior Vice President
Head of the Accounting Department
ORIX Corporation