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 October, 2002.
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]
----------------------------------
Consolidated Financial Results
April 1, 2002 - September 30, 2002
----------------------------------
October 25, 2002
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 122.60 to $1.00, the
approximate exchange rate prevailing at September 30, 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 September 30, 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)
Date Approved by Board of Director: October 25, 2002
1. Performance Highlights for the Six Months Ended September 30, 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
--------- ------------ --------- ------------ ------------- -------------------
September 30, 2002 334,728 0.7% 34,635 (8.0%) 37,996 2.1%
September 30, 2001 332,543 15.0% 37,628 30.8% 37,200 26.6%
March 31, 2002 658,462 -- 73,369 -- 73,039 --
Net Income Year-on-Year Basic Diluted
Change Earnings Per Share Earnings Per Share
---------- ------------ ------------------ ------------------
September 30, 2002 22,763 13.6% 272.12 256.34
September 30, 2001 20,036 17.5% 245.17 235.51
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 3,361 million for the six months ended September 30,
2002, a net loss of JPY 428 million for the six months ended September 30,
2001 and a net loss of JPY 330 million for the year ended March 31, 2002.
2. The average number of shares was 83,652,980 for the six months ended
September 30, 2002, 81,723,887 for the six months ended September 30, 2001
and 82,318,387 for the year ended March 31, 2002.
3. Changes in Accounting Principles Yes (x) No ( ) (required new
accounting adoption)
*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)
Total Assets Shareholders' Shareholders' Book Value
Equity Equity Ratio Per Share
------------ ------------- ------------- ----------
September 30, 2002 6,050,290 499,726 8.3% 5,973.44
September 30, 2001 6,002,015 455,147 7.6% 5,567.69
March 31, 2002 6,350,219 502,508 7.9% 6,007.52
1. The number of shares (excluding treasury stock) was 83,658,128 as of
September 30, 2002, 81,747,966 as of September 30, 2001 and 83,646,466 as
of March 31, 2002.
(3) Performance Highlights - Cash Flows (Unaudited)
Cash Flows Cash Flows Cash Flows Cash and Cash Equivalents
From Operating Activities From Investing Activities From Financing Activities At End of Period
------------------------- ------------------------- ------------------------- -------------------------
September 30, 2002 83,282 119,027 (345,174) 210,875
September 30, 2001
March 31, 2002 257,635 (305,711) 246,116 354,748
1. Consolidated Statements of Cash Flows at September 30, 2001 were not
prepared.
(4) Number of Consolidated Subsidiaries and Affiliates
Consolidated Subsidiaries 186
Non-consolidated Subsidiaries 0
Affiliates 65 (Of which 65 are accounted for
by the equity method)
(5) Changes in Consolidated Subsidiaries and Affiliates
Additions to and deletions from consolidated subsidiaries and affiliates
Additions: Consolidated Subsidiaries 14, Affiliates 3
Deletions: Consolidated Subsidiaries 3, Affiliates 2
2. Forecasts for the Year Ending March 31, 2003 (Unaudited)
Fiscal Year Total Income Before Net Income
Revenues Income Taxes
----------- -------- ------------- ----------
March 31, 2003 680,000 80,000 46,000
Note: Basic Earnings Per Share is forecasted to be JPY 549.86.
2
Group Position
--------------
ORIX group consists of ORIX Corporation, 186 subsidiaries and 65 affiliates,
and is developing various operations. The main contents of each operation and
the positioning of ORIX Corporation and its subsidiaries are as follows. In
addition, the following classification is the same as that of the
classification of information by segment.
Domestic Operations
-------------------------------------------------------------------------------
(1) Corporate finance
This business centers on direct financing leases and installment loans,
other than real estate loans, to corporate customers as well as the sale
of a variety of financial products and other fee business.
[Main related companies]
ORIX Corporation, ORIX Alpha Corporation, ORIX Auto Leasing
Corporation, IFCO Inc., Nittetsu Lease Co., Ltd.
-------------------------------------------------------------------------------
(2) Equipment operating leases
This business principally comprises the rental of precision measuring
equipment and personal computers to corporate customers as well as
automobile rental operations.
[Main related companies]
ORIX Rentec Corporation, ORIX Rent-A-Car Corporation
-------------------------------------------------------------------------------
(3) Real estate related finance
This business encompasses real estate loans to corporate customers and
housing loans to individuals. ORIX is also expanding its business
involving loan servicing, commercial mortgage-backed securities(CMBS), and
REITs.
[Main related companies]
ORIX Corporation, ORIX Trust and Banking Corporation, ORIX Asset
Management & Loan Services Corporation
-------------------------------------------------------------------------------
(4) Real estate
This business consists principally of condominium development and office
rental activities as well as the operation of such facilities as hotels,
employee dormitories, and training facilities.
[Main related companies]
ORIX Corporation, ORIX Estate Corporation, ORIX Real Estate
Corporation
-------------------------------------------------------------------------------
(5) Life insurance
This segment consists of direct and agency life insurance sales and
related activities conducted by ORIX Life Insurance.
[Main related companies]
ORIX Life Insurance Corporation
-------------------------------------------------------------------------------
(6) Other
The other segment encompasses securities transactions, venture capital
operations, consumer card loan operations, and new businesses.
[Main related companies]
ORIX Corporation, ORIX Credit Corporation, ORIX Capital Corporation,
ORIX Securities Corporation, ORIX Baseball Club Co., Ltd., ORIX
COMMODITIES Corporation, ORIX Club Corporation, ORIX Investment
Corporation
-------------------------------------------------------------------------------
Foreign Operations
-------------------------------------------------------------------------------
(1) The Americas
Principal businesses in the Americas segment are direct financing leases,
corporate lending, securities investment, commercial mortgage-backed
securities (CMBS) related business, and real estate development.
[Main related companies]
ORIX USA Corporation, ORIX Real Estate Equities, Inc., ORIX Financial
Services, Inc., ORIX Capital Markets, LLC, Stockton Holdings Limited
-------------------------------------------------------------------------------
(2) Asia and Oceania
Principal businesses in Asia and Oceania involve direct financing leases,
operating leases for precision measuring equipment and transportation
equipment, corporate lending, and securities investment.
[Main related companies]
ORIX Investment and Management Private Limited, ORIX Asia Limited,
ORIX Australia Corporation Limited, ORIX Taiwan Corporation, PT. ORIX
Indonesia Finance, ORIX Leasing Malaysia Berhad, ORIX Leasing
Pakistan Limited, ORIX Leasing Singapore Limited, INFRASTRUCTURE
LEASING & FINANCIAL SERVICES LIMITED
-------------------------------------------------------------------------------
(3) Europe
Principal businesses in Europe center on aircraft operating leases,
corporate loans, and securities investments.
[Main related companies]
ORIX Europe Limited, ORIX Ireland Limited, ORIX Aviation Systems
Limited
-------------------------------------------------------------------------------
3
Group Structure
---------------
The structure of principal business of ORIX group is as follows.
----------------------------------------------------------------------------------------------------------------------
Major Group Company Principal Business
----------------------------------------------------------------------------------------------------------------------
--
| ----------------------------------------------------------------------------------------------------------------------
| ORIX Corporation Leasing, Lending and Other Financial Services
| ----------------------------------------------------------------------------------------------------------------------
| ^ | |
| Domestic Operations | | |
| ------------------- | | |
| | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Auto Leasing Corporation Automobile Leasing | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Rentec Corporation Precision Measuring & OA Equipment Rentals | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Alpha Corporation Leasing, Lending | | |
| ----------------------------------------------------------------------------------- | | |
| IFCO Inc. Automobile Leasing | | |
| ----------------------------------------------------------------------------------- | | |
| Nittetsu Lease Co., Ltd. Leasing, Hire Purchase | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Credit Corporation Consumer Loans |Selling | Guarantee| Business
| ----------------------------------------------------------------------------------- |Substitu-| of Lia- | Fund Loan
| ORIX Club Corporation Consumer Loans |tion | bilities |
| ----------------------------------------------------------------------------------- | | |
| ORIX Rent-A-Car Corporation Automobile Rentals | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Real Estate Corporation Real Estate Development & Management | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Estate Corporation Real Estate & Leisure Facility Management | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Securities Corporation Securities Brokerage & Online Trading | | |
| ----------------------------------------------------------------------------------- | | |
| ORIX Life Insurance Corporation Life Insurance -- | |
| ----------------------------------------------------------------------------------- | |
| ORIX Trust and Banking Corporation Trust & Banking Services, Housing Loans | |
| ----------------------------------------------------------------------------------- | |
| ORIX Capital Corporation Venture Capital | |
| ----------------------------------------------------------------------------------- | |
| ORIX Investment Corporation Alternative Investment | |
| ----------------------------------------------------------------------------------- | |
| ORIX COMMODITIES Corporation Securities and Futures Trading | |
| ----------------------------------------------------------------------------------- | |
| ORIX Asset Management & Loan Services Loan Servicing | |
| Corporation | |
| ----------------------------------------------------------------------------------- | |
| ORIX Baseball Club Co., Ltd. Professional Baseball Team Management | |
| ----------------------------------------------------------------------------------- | |
| other 135 | |
Providing | ----------------------------------------------------------------------------------- | |
our <-- | <------|
customers | Foreign Operations | |
with | ------------------ | |
financial | | |
services | ------------------------------------------------------------------------------------ | |
| The Americas | |
| ---------------------------------------------------------------------------------- | |
| ORIX USA Corporation Investment Banking, Leasing <----------| |
| ---------------------------------------------------------------------------------- | |
| ORIX Financial Services, Inc. Leasing, Lending | |
| ---------------------------------------------------------------------------------- | |
| ORIX Real Estate Equities, Inc. Real Estate Development & Management | |
| ---------------------------------------------------------------------------------- | |
| ORIX Capital Markets, LLC Loan Servicing, Corporate Debt Investment | |
| ---------------------------------------------------------------------------------- | |
| Stockton Holdings Limited * Futures Trading, Reinsurance | |
| ---------------------------------------------------------------------------------- | |
| other 23 <- - - - - -| |
| ------------------------------------------------------------------------------------ | |
| Asia and Oceania | |
| ---------------------------------------------------------------------------------- | |
| ORIX Asia Limited Leasing, Investment Banking <-----------| |
| ---------------------------------------------------------------------------------- | |
| ORIX Investment and Venture Capital <-----------| |
| Management Private Limited | |
| ---------------------------------------------------------------------------------- | |
| ORIX Leasing Singapore Limited * Leasing, Hire Purchase | |
| ---------------------------------------------------------------------------------- | |
| ORIX Taiwan Corporation Leasing, Hire Purchase <-----------| |
| ---------------------------------------------------------------------------------- | |
| PT.ORIX Indonesia Finance Leasing, Automobile Leasing <-----------| |
| ---------------------------------------------------------------------------------- | |
| ORIX Leasing Malaysia Berhad Leasing, Lending, Hire Purchase <-----------| |
| ---------------------------------------------------------------------------------- | |
| ORIX Australia Corporation Limited Leasing, Automobile Leasing & Rentals <-----------| |
| ---------------------------------------------------------------------------------- | |
| INFRASTRUCTURE LEASING & * Investment Banking, Corporate Finance | |
| FINANCIAL SERVICES LIMITED | |
| ---------------------------------------------------------------------------------- | |
| ORIX Leasing Pakistan Limited Leasing, Automobile Leasing, Lending | |
| ---------------------------------------------------------------------------------- | |
| other 45 <- - - - - -| |
| ------------------------------------------------------------------------------------ | |
| Europe | |
| ---------------------------------------------------------------------------------- | |
| ORIX Europe Limited Corporate Finance <-----------| |
| ---------------------------------------------------------------------------------- | |
| ORIX Ireland Limited Corporate Finance <-----------| |
| ---------------------------------------------------------------------------------- | |
| ORIX Aviation Systems Limited Aircraft Leasing <-----------| |
| ---------------------------------------------------------------------------------- | |
| other 13 <- - - - - -| |
---------------------------------------------------------------------------------- |
-- --
* Affiliates - - - The guarantee to some
group companies is
shown among others
4
Summary of Consolidated Financial Results
Management Policies
-------------------
Objectives
ORIX aims to achieve the optimum growth in long-term shareholder value by
providing value-added financial services in areas that fully utilize the
specialization of the entire ORIX Group in order to meet our customers' needs.
As the services that customers demand have diversified, we have continued to
increase the number and quality of the financial solutions that we provide. As
a result, ORIX's operations have expanded from leasing, rentals and lending to
include life insurance, real estate finance and investment banking activities.
As new business opportunities arise in the future, we plan to build on our
accumulated knowledge and experience to continue to provide creative and
innovative financial solutions.
Dividend Policy
ORIX believes that the Company should strive to maximize return to shareholders
by increasing long-term corporate value. In order to achieve continued growth,
we fundamentally plan to use retained earnings to invest in highly profitable
areas.
Unit Shares
ORIX's basic policy is to periodically review the number of common shares that
make up one trading unit in order to promote a broad participation of
investors. With regards to the number of shares that make one unit, ORIX will
consider demands from the market and weigh the costs and benefits associated
with any changes to the present trading unit.
Financial Results
-----------------
1. Six Months Ended September 30, 2002
Economic Environment
As indicated by the instability in the stock markets, there was much
uncertainty in the U.S. economy in the six months ended September 30, 2002.
Although the Asian economy experienced a slowdown in exports to the U.S., its
economy performed relatively well. On the other hand, the Japanese economy
experienced difficulties due to corporate bankruptcies and restructuring, in
addition to a high level of unemployment and a sharp fall in stock prices. The
authorities have voiced their intention of finding some ways of overcoming
deflation, but the future remains uncertain.
Financial Highlights
Income before Income Taxes.........37,996 million yen (up 2% year on year)
Net Income.........................22,763 million yen (up 14% year on year)
Earnings Per Share (Basic).........272.12 yen (up 11% year on year)
Earnings Per Share (Diluted).......256.34 yen (up 9% year on year)
Book Value Per Share...............5,973.44 yen (down 1% year on year)
5
ROE................................9.1% (September 30, 2001: 8.7%)
ROA................................0.73% (September 30, 2001: 0.69%)
Revenues: 334,728 million yen (up 1% year on year)
"Interest on loans and investment securities" grew due to an increase in the
balance of housing loans and consumer card loans. However, "life insurance
premiums and related investment income" decreased by 14 billion yen due to the
emphasis on profitability over revenue growth. As a result, revenues were up 1%
year on year to 334,728 million yen.
Expenses: 300,093 million yen (up 2% year on year)
Efficient fund procurement from the capital markets and a drop in life
insurance revenues resulted in lower "interest expense" and "life insurance
costs." On the other hand, "selling, general and administrative expenses"
increased due to acquisitions that were made in the second half of the last
fiscal year. In addition, the carrying value of a golf course was written down
under "write-downs of long-lived assets" because the expected cash flows from
the course decreased against the backdrop of lower market price for golf
memberships. As a result, expenses increased slightly by 2% year on year to
300,093 million yen.
Net Income: 22,763 million yen (up 14% year on year)
While operating income was down by 8% year on year, it was offset by a gain in
"equity in net income (loss) of and gain (loss) on sale of affiliates" compared
with a loss in the previous fiscal year combined with recognition of 1,937
million yen due to "cumulative effect of a change in accounting principle"
resulted in a 14% rise in net income year on year to 22,763 million yen.
Operating Assets: 5,302.7 billion yen (down 4% from March 31, 2002)
Assets increased in areas related to corporate real estate-related finance and
the consumer card loan operations and an increase in the balance of direct
financing leases due to acquisitions. However, an overall reduction in the
balance of operating assets was achieved through the listing and sale of units
of a real estate investment trust (J-REIT), which reduced "other operating
assets", the securitization of direct financing lease and loan assets and the
reduction in the investment in securities in the life insurance operations. As
a result, operating assets were 5,302.7 billion yen, 4% down on March 31, 2002.
Segment Information ("Profits" refer to income before income taxes)
Domestic Operations
Corporate Finance: Segment profits were up 3%, or 656 million yen, compared to
the six months ended September 30, 2001 (2001/9) to 24,500 million yen. Both an
average balance of operating assets and revenues were up as a result of
acquisitions. In addition, the automobile leasing operations also enjoyed
higher profits.
Equipment Operating Leases: Segment profits were 2,979 million yen compared to
5,359 million yen in 2001/9. The automobile rental operations performed well,
but the rental of precision measuring equipment continued to suffer from the
sluggishness in information technology-related industries.
6
Real Estate-Related Finance: Segment profits jumped to 9,910 million yen from
403 million yen in 2001/9 due to the continued strong contribution from
corporate non-recourse loans, the acquisition of some housing loans in the
second half of the last fiscal year, and proceeds from the first quarter
listing and sale of a J-REIT.
Real Estate: Although the condominium development continued to perform strongly
and gains were made from the sale of real estate properties, this segment
experienced a loss of 8,807 million yen compared with a profit of 3,433 million
yen in the six-month period ended September 30, 2002 due to a 14,665 million
yen write-down of a golf course.
Life Insurance: Segment profits came in at 2,976 million yen compared to 4,236
million yen in 2001/9 (5,764 million yen for the fiscal year ended March 31,
2002). Segment profits were lower this half as a large contribution from the
sales of securities was concentrated in the first half of the previous fiscal
year.
Other: Segment profits jumped to 6,926 million yen compared to 2,505 million
yen in 2001/9 thanks to the increase in the balance of consumer card loans as
well as a contribution from the securitization of loans in the card loan
business.
Foreign Operations
The Americas: While still profitable, the commercial mortgage-backed securities
business in the United States posted lower earnings. In addition, the
"provision for doubtful receivables and possible loan losses" and the
"write-downs of securities" of high yield and other bonds necessitated by the
instability of the U.S. economy resulted in a segment loss of 1,027 million yen
compared to a segment loss of 90 million yen in 2001/9.
Asia and Oceania: The corporate lending and automobile leasing operations
performed well resulting in an increase in "segment profits" to 4,314 million
yen compared to 3,498 million yen in 2001/9.
Europe: While the sale of investment securities contributed to profits in
2001/9, no such gains were made in the first half of this fiscal year. This,
combined with the decrease in assets for the six months ended September 30,
2002 resulted in a segment loss of 610 million yen compared to a "segment
profit" of 1,521 million yen in the same period of the previous year.
2. Summary of Cash flow (Six Months Ended September 30, 2002)
"Cash and cash equivalents" decreased by 40.6% or 143,873 million yen to
210,875 million yen compared to March 2002.
"Cash flows from operating activities" were 83,282 million yen, mainly
consisting of "net income" and 57,229 million yen of "depreciation and
amortization".
"Cash flows from investing activities" were 119,027 million yen, due to inflows
associated with
7
"proceeds from sales of available-for-sale securities" and "sales of
subsidiaries, net of cash disposed" despite the outflows from an increase in
"installment loans".
345,174 million yen was used in "cash flows from financing activities," due to
the repayment of commercial paper and debt.
Please note that a "consolidated statements of cash flows" was not prepared for
the period ended September 30, 2001 and no comparisons were made regarding the
cash flows for operating, investing and financing activities for that period.
3. Summary of Second Quarter (Three Months Ended September 30, 2002)
In the second quarter, revenues increased 20,595 million yen year on year. This
is primarily due to the strong performance of the condominium development
business, with revenues from "direct financing leases," and "interest on loans
and investment securities" also contributing. "Life insurance premiums and
related investment income" decreased due to the shift in policy towards
guarantee-type products. Expenses in the second quarter increased 26,368
million yen year on year. Although there was a decrease in "interest expense"
and "life insurance costs," expenses associated with the condominium
development business increased, as did the "write-downs of long-lived assets".
This resulted in a decrease in operating income by 5,773 million yen to 9,936
million yen compared with the second quarter of the last fiscal year. As a
result, income before income taxes and net income for the second quarter were
also lower, at 11,674 million yen and 5,878 million yen respectively.
4. Outlook and forecasts for the Fiscal Year Ending March 31, 2003
There are heightened concerns about the future direction of the America economy
and corporate earnings are expected to remain sluggish in Japan.
Despite the difficulties in the economic environment, 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.
8
Consolidated Financial Highlights
(For the Six Months Ended September 30, 2002 and 2001, and the Year Ended March 31, 2002)
(Unaudited)
September Change Year September Year March Year
30, 2002 from -on- 30, 2001 -on- 31, 2002 -on-
March year year year
Operating Assets 31, 2002 Change Change Change
----------------------------------------------------------------------------------------------------------
Investment in Direct Financing Leases 1,669,623 101% 92% 1,821,868 105% 1,658,669 100%
Installment Loans 2,326,189 102% 117% 1,996,542 110% 2,273,280 123%
Investment in Operating Leases 460,103 97% 98% 468,841 113% 474,491 105%
Investment in Securities 717,500 83% 74% 972,816 113% 861,336 91%
Other Operating Assets 129,311 50% 99% 130,409 150% 260,373 197%
----------------------------------------------------------------------------------------------------------
Total 5,302,726 96% 98% 5,390,476 110% 5,528,149 110%
Operating Results
----------------------------------------------------------------------------------------------------------
Total Revenues 334,728 -- 101% 332,543 115% 658,462 112%
Income before Income Taxes 37,996 -- 102% 37,200 127% 73,039 123%
Net Income 22,763 -- 114% 20,036 117% 40,269 118%
Earnings Per Share
Income before Cumulative Effect of
a Change in Accounting Principle
Basic 248.97 -- 102% 243.54 117% 487.57 117%
Diluted 234.58 -- 100% 233.95 117% 465.57 116%
Net Income
Basic 272.12 -- 111% 245.17 118% 489.19 117%
Diluted 256.34 -- 109% 235.51 118% 467.11 116%
Book Value Per Share 5,973.44 99% 107% 5,567.69 106% 6,007.52 106%
Financial Position
----------------------------------------------------------------------------------------------------------
Shareholders' Equity 499,726 99% 110% 455,147 106% 502,508 109%
Number of Shares ('000)
(excluding treasury stock) 83,658 100% 102% 81,748 100% 83,646 102%
Long-and Short-Term Debt and Deposits 4,425,331 95% 100% 4,409,036 111% 4,679,566 115%
Total Assets 6,050,290 95% 101% 6,002,015 111% 6,350,219 114%
Shareholders' Equity Ratio 8.3% 105% 109% 7.6% 95% 7.9% 95%
Return on Equity (annualized) 9.1% 108% 105% 8.7% 109% 8.4% 109%
New Business Volumes
----------------------------------------------------------------------------------------------------------
Direct Financing Leases
New Receivables Added 563,596 -- 88% 641,379 146% 1,083,070 129%
New Equipment Acquisitions 507,941 -- 88% 578,013 152% 980,379 136%
Installment Loans 675,208 -- 125% 540,804 146% 1,340,400 181%
Operating Leases 61,526 -- 72% 85,208 117% 146,203 102%
Investment in Securities 95,228 -- 50% 190,192 78% 348,347 88%
Other Operating Assets 50,559 -- 126% 40,228 93% 204,121 158%
----------------------------------------------------------------------------------------------------------
9
Condensed Consolidated Statements of Income
(For the Six Months Ended September 30, 2002 and 2001, and the Year Ended March 31, 2002)
(Unaudited)
(millions of JPY, millions of US$)
Six months Year Six months Year Year ended Year U.S. dollars
ended -on- ended -on- March -on- September
September year September year 31, 2002 year 30, 2002
30, 2002 Change 30, 2001 Change Change
------------------ ------------------ ------------------ ------------
Total Revenues: 334,728 101% 332,543 115% 658,462 112% 2,730
------------------ ------------------ ------------------ ------------
Direct Financing Leases 63,479 58,527 121,914 518
Operating Leases 61,079 58,643 120,807 498
Interest on Loans and Investment Securities 64,041 56,758 121,962 522
Brokerage Commissions and Gains on Investment Securities 7,927 8,496 18,367 65
Life Insurance Premiums and Related Investment Income 71,832 85,912 152,333 586
Residential Condominium Sales 29,742 33,019 58,078 243
Interest Income on Deposits 312 1,010 1,374 3
Other Operating Revenues 36,316 30,178 63,627 295
------------------ ------------------ ------------------ ------------
Total Expenses: 300,093 102% 294,915 113% 585,093 111% 2,447
------------------ ------------------ ------------------ ------------
Interest Expense 36,704 49,976 90,348 299
Depreciation - Operating Leases 38,853 37,383 77,047 317
Life Insurance Costs 64,424 78,929 139,786 525
Costs of Residential Condominium Sales 25,712 27,536 49,517 210
Other Operating Expenses 18,149 14,304 29,614 148
Selling, General and Administrative Expenses 69,829 58,259 126,316 569
Provision for Doubtful Receivables and Possible Loan Losses 24,967 20,188 51,367 204
Write-downs of Long-Lived Assets 14,665 1,386 2,716 120
Write-downs of Securities 5,742 7,251 19,742 47
Foreign Currency Transaction Loss (Gain), Net 1,048 (297) (1,360) 8
------------------ ------------------ ------------------ ------------
Operating Income 34,635 92% 37,628 131% 73,369 128% 283
------------------ ------------------ ------------------ ------------
Equity in Net Income (Loss) of
and Gain (Loss) on Sales of Affiliates 3,361 (428) (330) 27
------------------ ------------------ ------------------ ------------
Income before Income Taxes 37,996 102% 37,200 127% 73,039 123% 310
------------------ ------------------ ------------------ ------------
Provision for Income Taxes 17,170 17,297 32,903 140
------------------ ------------------ ------------------ ------------
Income before Cumulative Effect of a Change in
Accounting Principle 20,826 105% 19,903 117% 40,136 118% 170
------------------ ------------------ ------------------ ------------
Cumulative Effect of a Change in Accounting Principle 1,937 133 133 16
------------------ ------------------ ------------------ ------------
Net Income 22,763 114% 20,036 117% 40,269 118% 186
================== ================== ================== ============
Note: 1. 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".
With respect to the transitional goodwill impairment test as a result
of the initial application of FASB Statement No. 142 ("Goodwill and
Other Intangible Assets"), the Company and its subsidiaries are
evaluating an impairment of goodwill.
2. As of the beginning of the previous fiscal year ended March 31, 2002,
the transition adjustment of JPY133 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.
3. "Residential Condominium Sales" and "Costs of Residential Condominium
Sales" were reclassified from "Other Operating Revenues" and "Other
Operating Expenses", respectively.
10
Condensed Consolidated Balance Sheets
(As of September 30, 2002 and 2001, and March 31, 2002)
(Unaudited)
(millions of JPY, millions of $US)
September September March U.S. dollars
30, 2002 30, 2001 31, 2002 September
Assets 30, 2002
----------------------------------------------------------------------------------------------------------------------
Cash and Cash Equivalents 210,875 201,244 354,748 1,720
Restricted Cash and Cash Equivalents 20,936 22,694 20,189 171
Time Deposits 1,229 8,727 1,050 10
Investment in Direct Financing Leases 1,669,623 1,821,868 1,658,669 13,618
Installment Loans 2,326,189 1,996,542 2,273,280 18,974
Allowance for Doubtful Receivables on
Direct Financing Leases and Possible Loan Losses (136,961) (145,856) (152,887) (1,117)
Investment in Operating Leases 460,103 468,841 474,491 3,753
Investment in Securities 717,500 972,816 861,336 5,852
Other Operating Assets 129,311 130,409 260,373 1,055
Investment in Affiliates 102,271 59,491 86,346 834
Other Receivables 132,047 94,181 124,022 1,077
Advances 175,917 144,352 158,089 1,435
Prepaid Expenses 42,157 35,215 37,406 344
Office Facilities 76,879 78,282 76,987 627
Other Assets 122,214 113,209 116,120 997
--------- --------- --------- ------
Total 6,050,290 6,002,015 6,350,219 49,350
========= ========= ========= ======
Liabilities and Shareholders' Equity
----------------------------------------------------------------------------------------------------------------------
Short-Term Debt 1,397,228 1,596,936 1,644,462 11,397
Deposits 266,446 207,810 225,243 2,173
Trade Notes and Accounts Payable 219,601 247,945 244,871 1,791
Accrued Expenses 88,785 78,382 92,266 724
Policy Liabilities 601,815 598,871 602,664 4,909
Income Taxes 145,791 144,444 153,076 1,189
Deposits from Lessees 69,241 68,190 75,268 565
Long-Term Debt 2,761,657 2,604,290 2,809,861 22,526
--------- --------- --------- ------
Total Liabilities 5,550,564 5,546,868 5,847,711 45,274
--------- --------- --------- ------
Common Stock 51,908 41,980 51,854 423
Additional Paid-in Capital 69,877 60,185 69,823 570
Legal Reserve 2,220 2,220 2,220 18
Retained Earnings 421,684 379,942 400,175 3,440
Accumulated Other Comprehensive Loss (37,800) (20,905) (13,440) (308)
Treasury Stock (8,163) (8,275) (8,124) (67)
--------- --------- --------- ------
Shareholders' Equity 499,726 455,147 502,508 4,076
--------- --------- --------- ------
Total 6,050,290 6,002,015 6,350,219 49,350
========= ========= ========= ======
----------------------------------------------------------------------------------------------------------------------
September September March U.S. dollars
30, 2002 30, 2001 31, 2002 September
-------- -------- -------- ------------
Note: 1. Accumulated Other Comprehensive Loss 30, 2002
Net unrealized gains on investment in securities 4,824 21,593 14,756 39
Minimum pension liability adjustments (5,826) (4,489) (6,834) (48)
Cumulative translation adjustments (27,918) (29,315) (14,800) (227)
Net unrealized losses on derivative instruments (8,880) (8,694) (6,562) (72)
2. "Income taxes" includes "Income Taxes:Current" and "Income Taxes:Deferred" those were shown separately in previous
Consolidated Balance Sheets.
11
Condensed Consolidated Statements of Shareholders' Equity
(For the Six Months Ended September 30, 2002 and 2001, and the Year Ended March 31, 2002)
(Unaudited)
(millions of JPY, millions of US$)
Six months Six months Year ended U.S. dollars
ended ended March September
September September 31, 2002 30, 2002
30, 2002 30, 2001
---------- ---------- ---------- ------------
Common Stock:
Beginning balance 51,854 41,820 41,820 423
Issuance during the year 54 160 10,034 0
---------- ---------- ---------- ------------
Ending balance 51,908 41,980 51,854 423
---------- ---------- ---------- ------------
Additional Paid-in Capital:
Beginning balance 69,823 59,885 59,885 570
Issuance during the year and
other increase, net 54 300 9,938 0
---------- ---------- ---------- ------------
Ending balance 69,877 60,185 69,823 570
---------- ---------- ---------- ------------
Legal Reserve:
Beginning balance 2,220 2,090 2,090 18
Transfer from retained earnings - 130 130 -
---------- ---------- ---------- ------------
Ending balance 2,220 2,220 2,220 18
---------- ---------- ---------- ------------
Retained Earnings:
Beginning balance 400,175 361,262 361,262 3,264
Cash dividends (1,254) (1,226) (1,226) (10)
Transfer to legal reserve - (130) (130) -
Net income 22,763 20,036 40,269 186
---------- ---------- ---------- ------------
Ending balance 421,684 379,942 400,175 3,440
---------- ---------- ---------- ------------
Accumulated Other Comprehensive Loss:
Beginning balance (13,440) 4,552 4,552 (109)
Net decrease in net unrealized
gains on investment in securities (9,932) (12,751) (19,588) (81)
Net (increase) decrease in minimum
pension liability adjustments 1,008 195 (2,150) 8
Net increase (decrease) in cumulative
translation adjustments (13,118) (4,207) 10,308 (107)
Net increase in net unrealized
losses on derivative instruments (2,318) (8,694) (6,562) (19)
---------- ---------- ---------- ------------
Ending balance (37,800) (20,905) (13,440) (308)
---------- ---------- ---------- ------------
Treasury Stock:
Beginning balance (8,124) (8,286) (8,286) (66)
(Increase) decrease, net (39) 11 162 (1)
---------- ---------- ---------- ------------
Ending balance (8,163) (8,275) (8,124) (67)
---------- ---------- ---------- ------------
Total Shareholders' Equity:
Beginning balance 502,508 461,323 461,323 4,099
Increase (decrease), net (2,782) (6,176) 41,185 (23)
---------- ---------- ---------- ------------
Ending balance 499,726 455,147 502,508 4,076
========== ========== ========== ============
Summary of Comprehensive Income (Loss):
Net income 22,763 20,036 40,269 186
Other comprehensive loss (24,360) (25,457) (17,992) (199)
---------- ---------- ---------- ------------
Comprehensive income (loss) (1,597) (5,421) 22,277 (13)
========== ========== ========== ============
12
Condensed Consolidated Statements of Cash Flows
(For the Six Months Ended September 30, 2002 and the Year Ended March 31, 2002)
(Unaudited)
(milions of JPY, millions of US$)
U.S. dollars
Six months ended Year ended Six months ended
September 30, 2002 March 31, 2002 September 30, 2002
------------------------------------------------------------------------------------------------------------------------------------
Cash Flows from Operating Activities:
Net income 22,763 40,269 186
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 57,229 117,019 466
Provision for doubtful receivables and possible loan losses 24,967 51,367 203
Increase (decrease) in policy liabilities (849) 40,777 (7)
Gains on securitization (3,665) (9,235) (30)
Equity in net (income) loss of and (gain) loss on sales of affiliates (3,361) 330 (27)
Gains on sales of available-for-sale securities (4,204) (13,795) (34)
Write-downs of long-lived assets 14,665 2,716 120
Write-downs of securities 5,742 19,742 47
Increase in restricted cash and cash equivalents (1,034) (2,865) (8)
Decrease (increase) in other operating assets held for sales, (13,648) 2,133 (111)
including advance payments
Increase in prepaid expenses (3,853) (9,255) (31)
Increase (decrease) in accrued expenses (195) 223 (2)
Increase in deposit from lessees 1,148 8,464 9
Other, net (12,423) 9,745 (102)
---------- ---------- ---------
Net cash provided by operating activities 83,282 257,635 679
---------- ---------- ---------
Cash Flows from Investing Activities:
Purchases of lease equipment, including advance payments (465,874) (838,105) (3,800)
Principal payments received under direct financing leases 389,630 768,923 3,178
Net proceeds from securitization of lease and loan receivables 92,803 258,926 757
Installment loans made to customers (622,872) (1,334,532) (5,081)
Principal collected on installment loans 532,142 865,598 4,340
Proceeds from sales of operating lease assets 32,474 39,921 265
Investment in and dividends received from affiliates, net (902) (20,457) (7)
Purchases of available-for-sale securities (67,406) (289,055) (550)
Proceeds from sales of available-for-sale securities 144,800 325,758 1,181
Maturities of available-for-sale securities 54,256 67,290 443
Purchases of other securities (20,941) (50,243) (171)
Proceeds from sales of other securities 17,759 6,717 145
Purchases of other operating assets (1,067) (119,700) (9)
Proceeds from sales of other operating assets 14,830 1,841 121
Net decrease in call loans -- 9,500 --
Acquisitions of subsidiaries, net of cash acquired (10,607) 3,846 (87)
Sales of subsidiaries, net of cash disposed 37,018 552 302
Other, net (7,016) (2,491) (56)
---------- ---------- ---------
Net cash provided by (used in) in investing activities 119,027 (305,711) 971
---------- ---------- ---------
Cash Flows from Financing Activities:
Repayment of short-term debt, net (41,950) (171,114) (342)
Proceeds from (Repayment of) commercial paper, net (282,590) 101,279 (2,305)
Proceeds from long-term debt 370,233 975,220 3,020
Repayment of long-term debt (425,885) (729,593) (3,474)
Net increase in deposits due to customers 41,203 46,929 336
Issuance of common stock 108 19,315 1
Dividends paid (1,254) (1,226) (10)
Net increase (decrease) in call money (5,000) 5,000 (41)
Other, net (39) 306 0
---------- ---------- ---------
Net cash provided by (used in) financing activities (345,174) 246,116 (2,815)
---------- ---------- ---------
Effect of Exchange Rate Changes on Cash and Cash Equivalents (1,008) 1,297 (9)
---------- ---------- ---------
Net Increase (Decrease) in Cash and Cash Equivalents (143,873) 199,337 (1,174)
Cash and Cash Equivalents at Beginning of Period 354,748 155,411 2,894
---------- ---------- ---------
Cash and Cash Equivalents at End of Period 210,875 354,748 1,720
========== ========== =========
13
Segment Information
(For the Six Months Ended September 30, 2002 and 2001, and the Year Ended March 31, 2002)
(Unaudited)
(millions of JPY)
Six months ended Six months ended Year ended
September 30, 2002 September 30, 2001 March 31, 2002
----------------------------- ----------------------------- -----------------------------
Revenues Income Operating Revenues Income Operating Revenues Income Operating
before Assets before Assets before Assets
Income Income Income
Taxes Taxes Taxes
-------- ------ --------- -------- ------ --------- -------- ------ ---------
Domestic Operations
Corporate Finance 64,544 24,500 1,981,237 54,317 23,844 2,158,006 118,794 48,066 1,960,380
Equipment Operating Leases 32,967 2,979 142,964 34,123 5,359 136,713 67,319 9,906 147,444
Real Estate Related Finance 25,703 9,910 908,115 12,853 403 647,889 31,582 5,654 1,012,896
Real Estate 45,314 (8,807) 289,919 42,399 3,433 333,394 85,516 5,842 326,473
Life Insurance 71,832 2,976 570,983 87,304 4,236 583,579 154,296 5,764 543,738
Other 27,159 6,926 372,273 22,521 2,505 322,082 49,139 4,941 352,433
------- ------- --------- ------- ------ --------- ------- ------ ---------
Sub-Total 267,519 38,484 4,265,491 253,517 39,780 4,181,663 506,646 80,173 4,343,364
Foreign Operations
The Americas 27,275 (1,027) 713,300 37,638 (90) 777,428 75,195 810 794,330
Asia and Oceania 27,579 4,314 431,966 30,350 3,498 400,978 56,677 5,433 435,093
Europe 5,833 (610) 86,024 8,569 1,521 136,441 14,716 600 113,844
------- ------- --------- ------- ------ --------- ------- ------ ---------
Sub-Total 60,687 2,677 1,231,290 76,557 4,929 1,314,847 146,588 6,843 1,343,267
------- ------- --------- ------- ------ --------- ------- ------ ---------
Segment Total 328,206 41,161 5,496,781 330,074 44,709 5,496,510 653,234 87,016 5,686,631
------- ------- --------- ------- ------ --------- ------- ------ ---------
Difference between Segment totals
and Consolidated Amounts 6,522 (3,165) (194,055) 2,469 (7,509) (106,034) 5,228 (13,977) (158,482)
------- ------- --------- ------- ------ --------- ------- ------ ---------
Consolidated Amounts 334,728 37,996 5,302,726 332,543 37,200 5,390,476 658,462 73,039 5,528,149
======= ======= ========= ======= ====== ========= ======= ====== =========
(millions of US$)
U.S. dollars September 30, 2002
-------------------------------
Revenues Income Operating
before Assets
Income
Taxes
-------- ------ ---------
Domestic Operations
Corporate Finance 526 200 16,160
Equipment Operating Leases 269 24 1,166
Real Estate Related Finance 210 81 7,407
Real Estate 370 (72) 2,365
Life Insurance 586 24 4,657
Other 221 57 3,037
-------- ------ ---------
Sub-Total 2,182 314 34,792
Foreign Operations
The Americas 222 (8) 5,818
Asia and Oceania 225 35 3,523
Europe 48 (5) 702
-------- ------ ---------
Sub-Total 495 22 10,043
-------- ------ ---------
Segment Total 2,677 336 44,835
-------- ------ ---------
Difference between Segment totals
and Consolidated Amounts 53 (26) (1,583)
-------- ------ ---------
Consolidated Amounts 2,730 310 43,252
======== ====== =========
14
Basis of presentation and significant accounting policies
In preparing the accompanying consolidated financial statements, ORIX
Corporation (the Company) 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.
The significant difference with its and Japanese accounting policies and
practices are as follows. Accounting for direct financing leases, impairment of
long-lived assets and long-lived assets to be disposed of, use of the
straight-line method of depreciation for operating lease equipment, deferral of
life insurance policy acquisition costs and calculation of policy liabilities,
derivative instruments and hedging activities, goodwill and intangible assets
resulting from business combinations, pension plans, and a reflection of the
income tax effect on such adjustments. And segment information is prepared in
accordance with FASB Statement No.131. Basis of presentation and significant
accounting policies are as follows.
1. Consolidated subsidiaries
The accompanying consolidated financial statements include the accounts of the
Company, 107 domestic subsidiaries and 79 foreign subsidiaries (all 186
subsidiaries). Major subsidiaries are ORIX Auto Leasing Corporation, ORIX USA
Corporation and others.
2. Affiliates accounted for by the equity method
Investment in 44 domestic affiliates and 21 foreign affiliates (all 65
affiliates) are accounted for by using equity method. Major affiliates are The
Fuji Fire and Marine Insurance Company Limited, Stockton Holdings Limited and
others.
3. The date of subsidiaries interim closing
Subsidiaries where interim closing date differs from that of the Company close
their books with necessary adjustments for consolidation purpose at the interim
closing date.
4. Accounting policies
(1) Use of estimates
The preparation of the consolidated financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
(2) Recognition of revenues
Direct financing leases--The excess of aggregate lease rentals plus the
estimated unguaranteed residual value over the cost of the leased equipment
constitutes the unearned lease income to be taken into income over the lease
term using the interest method. Certain direct lease origination costs are
being deferred and amortized over the lease term as a yield adjustment.
Operating leases--Operating lease assets are recorded at cost and are
depreciated over their estimated useful lives mainly on a straight-line basis.
15
Insurance premium and expenses-- Premium income from life insurance policies
are recognized as earned premiums when due. Life insurance benefits are
recorded as expenses when they are incurred. Policy liabilities for future
policy benefits are established for by the net level premium method, based on
actuarial estimates of the amount of future policyholder benefits. The certain
costs associated with writing insurances were deferred and amortized over the
respective policy periods in proportion to anticipated premium revenue.
(3) Investment in securities
Trading securities are reported at fair value with unrealized gains and losses
included in income. Available-for-sale securities are reported at fair value,
and unrealized gains or losses are recorded through accumulated other
comprehensive loss, net of applicable income taxes. The Company and its
subsidiaries recognize losses related to securities for which the market price
has been below the acquisition cost other than temporary decline.
Held-to-maturity securities are recorded at amortized cost.
(4) Impairment of long-lived assets
Long-lived assets and certain identifiable intangibles to be held and used by
the Company and its subsidiaries are reviewed for impairment, whenever events
or changes in circumstances indicate that the carrying amount of the assets may
not be recoverable. When the sum of undiscounted future cash flows expected to
be generated by the assets is less than the carrying amount of the assets,
impairment losses are recognized based on the fair value of the asset.
(5) Allowance for doubtful receivables on direct financing leases and possible
loan losses
The allowance for doubtful receivables on direct financing leases and possible
loan losses is maintained at a level which, in the judgment of management, is
adequate to provide for potential losses on lease and loan portfolios that can
be reasonably anticipated.
(6) Prepaid benefit cost (Accrued benefit liability)
The Company and its subsidiaries adopted FASB Statement No.87 ("Employer's
Accounting for Pensions").
(7) Significant foreign currencies translation
The Company and its subsidiaries maintain their accounting records in their
functional currency. Transactions in foreign currencies are recorded in the
entity's functional currency based on the prevailing exchange rates on the
transaction date.
The financial statements of foreign subsidiaries and affiliates are translated
into Japanese yen by applying the exchange rates in effect at the end of each
fiscal year to all assets and liabilities. Income and expenses are translated
at the average rates of exchange prevailing during the fiscal year.
(8) Hedge accounting
The Company and its subsidiaries adopted FASB Statement No.133 ("Accounting for
Derivative Instruments and Hedging Activities"), as amended by FASB Statement
No.138 ("Accounting for Certain Derivative Instruments and Certain Hedging
Activities--an amendment of FASB Statement No.133"). All derivatives are
recorded on the balance sheet at fair value.
(9) Income taxes
The Company, in general, determines its income tax provisions for interim
periods by applying the
16
current estimate of the effective tax rate to be applicable for the full fiscal
year to the actual year-to-date pre-tax income amount. The estimated effective
tax rate is determined by dividing total estimated income tax expense for the
full fiscal year by total estimated pre-tax income for the full fiscal year.
5. Cash and cash equivalents in the accompanying consolidated statements of
cash flows
Cash and cash equivalents include cash on hand, deposits placed with bank and
short-term highly liquid investments with original maturities of three months
or less.
6. Other notes to consolidated financial statements
In March 2002, the Company acquired approximately 22% interest in The Fuji Fire
and Marine Insurance Company Limited for JPY18,105 million (US$148 million).
Also in July 2002, the Company acquired a 90% interest in Nittetsu Lease Co.,
Ltd. for JPY4,974 million (US$41 million). The Company has recorded its share
of earnings for each entity by the equity method and consolidation from their
respective acquisition dates forward. In this regard, the Company has reflected
certain preliminary estimates of the valuation of the underlying net assets of
each of the entities in the accompanying consolidated financial statements. Any
required adjustments to these estimates will be recorded as valuations are
finalized, including the determination of positive or negative goodwill, if
any.
Revenues from foreign customers
Revenues from foreign customers are as follows.
September 30, 2002
----------------------------------------------------------------------------------------
millions of JPY
-------------------------------------------
The Asia and
Americas Oceania Europe Total
---------- ---------- -------- -------
Revenues from foreign customers 27,918 28,276 6,421 62,615
------------------------------------------- ---------- ---------- -------- -------
Total consolidated revenues 334,728
------------------------------------------- ---------- ---------- -------- -------
Ratio of revenues from foreign
customers to total consolidated revenues 8.3% 8.4% 1.9% 18.7%
=========================================== ========== ========== ======== =======
September 30, 2002
----------------------------------------------------------------------------------------
millions of U.S.dollars
-------------------------------------------
The Asia and
Americas Oceania Europe Total
---------- ---------- -------- -------
Revenues from foreign customers 228 231 52 511
------------------------------------------- ---------- ---------- -------- -------
Total consolidated revenues 2,730
------------------------------------------- ---------- ---------- -------- -------
Ratio of revenues from foreign
customers to total consolidated revenues 8.3% 8.4% 1.9% 18.7%
=========================================== ========== ========== ======== =======
This information was not prepared at September 30, 2001 and March 31, 2002.
17
Investment in Securities
Investment in securities at September 30, 2002 and March 31, 2002 consists of
the following:
-----------------------------------------------------------------------------------------
Millions of JPY Millions of
U.S. dollars
-------------------------------------- -----------------
September 30, March 31, September 30,
2002 2002 2002
-----------------------------------------------------------------------------------------
Trading securities 13,820 879 113
Available-for-sale securities 561,822 718,919 4,582
Held-to-maturity securities 12,815 16,008 105
Other securities 129,043 125,530 1,052
------------------ ------------------ -----------------
717,500 861,336 5,852
================== ================== =================
-----------------------------------------------------------------------------------------
Other securities consist mainly of non-marketable equity securities, preferred
subscription certificates carried at cost and investment funds accounted for
under the equity method.
The amortized cost basis amounts, gross unrealized holding gains, gross
unrealized holding losses and fair values of available-for-sale and
held-to-maturity securities in each major security type at September 30, 2002
and March 31, 2002 are as follows:
September 30, 2002
------------------------------------------------------------------------------------------------------------------
Millions of JPY
-----------------------------------------------------------------
Gross Gross
Amortized unrealized unrealized
cost gains losses Fair Value
------------------------------------------------------------------------------------------------------------------
Available-for-sale:
Japanese and foreign government
bond securities 25,254 225 (78) 25,401
Japanese prefectural and
foreign municipal bond securities 12,396 226 (881) 11,741
Corporate debt securities 366,903 3,711 (8,271) 362,343
Mortgage-backed and
other asset-backed securities 114,903 4,833 (3,159) 116,577
Funds in trust 4,731 -- (593) 4,138
Equity securities 26,894 17,651 (2,923) 41,622
--------------- -------------- --------------- ---------------
551,081 26,646 (15,905) 561,822
=============== ============== =============== ===============
Held-to-maturity:
Japanese and foreign government
bond securities 207 1 -- 208
Asset-backed securities 12,587 -- -- 12,587
Corporate debt securities 21 -- -- 21
--------------- -------------- --------------- ---------------
12,815 1 -- 12,816
=============== ============== =============== ===============
------------------------------------------------------------------------------------------------------------------
18
March 31, 2002
------------------------------------------------------------------------------------------------------------------
Millions of JPY
-----------------------------------------------------------------
Gross Gross
Amortized unrealized unrealized
cost gains losses Fair Value
-----------------------------------------------------------------------------------------------------------------
Available-for-sale:
Japanese and foreign government
bond securities 25,061 256 (9) 25,308
Japanese prefectural and
foreign municipal bond securities 24,256 582 (464) 24,374
Corporate debt securities 501,380 7,010 (10,552) 497,838
Mortgage-backed and
other asset-backed securities 109,528 6,152 (2,789) 112,891
Funds in trust 5,452 -- (465) 4,987
Equity securities 27,619 27,992 (2,090) 53,521
--------------- -------------- --------------- --------------
693,296 41,992 (16,369) 718,919
=============== ============== =============== ==============
Held-to-maturity:
Japanese and foreign government
bond securities 183 22 -- 205
Asset-backed securities 15,825 1,990 (302) 17,513
--------------- -------------- --------------- --------------
16,008 2,012 (302) 17,718
=============== ============== =============== ==============
-----------------------------------------------------------------------------------------------------------------
September 30, 2002
------------------------------------------------------------------------------------------------------------------
Millions of U.S. dollars
-----------------------------------------------------------------
Gross Gross
Amortized unrealized unrealized
cost gains losses Fair Value
------------------------------------------------------------------------------------------------------------------
Available-for-sale:
Japanese and foreign government
bond securities 206 2 (1) 207
Japanese prefectural and
foreign municipal bond securities 101 2 (7) 96
Corporate debt securities 2,992 30 (67) 2,955
Mortgage-backed and
other asset-backed securities 938 39 (26) 951
Funds in trust 39 -- (5) 34
Equity securities 219 144 (24) 339
--------------- -------------- --------------- ---------------
4,495 217 (130) 4,582
=============== ============== =============== ===============
Held-to-maturity:
Japanese and foreign government
bond securities 2 0 -- 2
Asset-backed securities 103 -- -- 103
Corporate debt securities 0 -- -- 0
--------------- -------------- --------------- ---------------
105 0 -- 105
=============== ============== =============== ===============
------------------------------------------------------------------------------------------------------------------
This information was not prepared at September 30, 2001.
19
Derivative
The Company and its subsidiaries are party to derivative financial instruments
that use in the normal course of business to reduce exposure to fluctuations in
interest and foreign currency rates.
(a) Cash flow hedges
The Company and its subsidiaries designate interest rate swap agreements as
cash flow hedges for variability of cash flows originated from floating rate
borrowings.
(b) Fair value hedges
The Company and its subsidiaries use financial instruments designated as fair
value hedges to hedge their exposure to interest rate risk and foreign currency
exchange risk. The Company and its subsidiaries designate foreign currency swap
agreements and foreign exchange forward contracts to minimize foreign currency
exposures on operating assets including lease receivables, loan receivables and
borrowings. A subsidiary hedges a portion of the interest rate exposure of the
fair values of certain asset-backed securities using sales of future contracts
on treasury securities. The Company's subsidiaries, which issued medium-term
notes, use interest rate swap contracts to hedge interest rate exposure of the
fair values of these medium-term notes. In case that medium-term notes were
denominated in other than the subsidiaries' local currency, foreign currency
swap agreements are used to hedge foreign exchange rate exposure.
(c) Hedges of net investment in foreign operations
The Company uses foreign exchange forward contracts, foreign currency swap
agreements and borrowings denominated in the subsidiaries' local currencies to
hedge the foreign currency exposure of net investment in foreign subsidiaries.
(d) Trading and other derivatives
Certain of the Company's subsidiaries engage in trading activities with various
future contracts. For risk management purposes, the Company and certain
subsidiaries entered into interest rate swap agreements, caps and collars,
which are not qualified for hedge accounting under FASB Statement No. 133. In
accordance with FASB Statement No. 133, conversion options were bifurcated from
the Company and certain subsidiaries' convertible bonds, and are recorded as
stand-alone derivative contracts. At September 30, 2002 and March 31, 2002, the
total face amount was JPY110,733 million (US$903 million) and JPY127,572
million, respectively and the fair value of conversion option was JPY695
million (US$6 million) and JPY2,195 million, respectively.
September 30, 2002
-------------------------------------------------------------------------------------------------------------
Millions of JPY
-------------------------------------------------------------
Estimated
Notional amount Carrying amount fair value
-------------------------------------------------------------------------------------------------------------
Interest rate risk management:
Interest rate swap agreements 513,781 (16,272) (16,272)
Options, caps, floors and collars held 28,187 (41) (41)
Futures 116,801 (949) (949)
Foreign exchange risk management:
Foreign exchange forward contracts 59,391 (346) (346)
Foreign currency swap agreements 361,930 (5,050) (5,050)
Trading activities:
Futures 78,561 283 283
Interest rate swap agreements 2,000 7 7
Options, caps, floors and collars held 10,543 3 3
Options, caps, floors and collars written 3,600 (2) (2)
-------------------------------------------------------------------------------------------------------------
20
March 31, 2002
-------------------------------------------------------------------------------------------------------------
Millions of JPY
-------------------------------------------------------------
Estimated
Notional amount Carrying amount fair value
-------------------------------------------------------------------------------------------------------------
Interest rate risk management:
Interest rate swap agreements 482,130 (9,326) (9,326)
Options, caps, floors and collars held 31,258 (29) (29)
Futures 89,371 2,325 2,325
Foreign exchange risk management:
Foreign exchange forward contracts 95,410 (1,915) (1,915)
Foreign currency swap agreements 385,759 (30,529) (30,529)
Trading activities:
Futures 143,518 196 196
Interest rate swap agreements 2,000 8 8
Options, caps, floors and collars held 10,188 8 8
Options, caps, floors and collars written 7,598 (5) (5)
Foreign exchange forward contracts 2,015 6 6
-------------------------------------------------------------------------------------------------------------
September 30, 2002
-------------------------------------------------------------------------------------------------------------
Millions of U.S. dollars
-------------------------------------------------------------
Estimated
Notional amount Carrying amount fair value
-------------------------------------------------------------------------------------------------------------
Interest rate risk management:
Interest rate swap agreements 4,191 (133) (133)
Options, caps, floors and collars held 230 (0) (0)
Futures 953 (8) (8)
Foreign exchange risk management:
Foreign exchange forward contracts 484 (3) (3)
Foreign currency swap agreements 2,952 (41) (41)
Trading activities:
Futures 641 2 2
Interest rate swap agreements 16 0 0
Options, caps, floors and collars held 86 0 0
Options, caps, floors and collars written 29 (0) (0)
-------------------------------------------------------------------------------------------------------------
This information was not prepared at September 30, 2001.
21
Key Quarterly Financial Data (Unaudited)
(millions of JPY)
-----------------------------------------------------------------------------------------------------------------------------------
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)
-----------------------------------------------------------------------------------------------------------------------------------
1) Investment in Direct Financing Leases 1,622,953 1,821,868 1,839,899 1,658,669 1,646,932 1,669,623
Domestic 1,191,040 1,423,710 1,410,859 1,255,537 1,283,552 1,305,846
Foreign 431,913 398,158 429,040 403,132 363,380 363,777
2) Installment Loans 1,918,389 1,996,542 2,274,515 2,273,280 2,327,354 2,326,189
Domestic 1,511,925 1,585,267 1,840,077 1,840,289 1,898,108 1,932,184
Foreign 406,464 411,275 434,438 432,991 429,246 394,005
3) Investment in Operating Leases 464,276 468,841 488,662 474,491 451,012 460,103
Domestic 335,833 347,725 357,459 338,719 327,391 339,403
Foreign 128,443 121,116 131,203 135,772 123,621 120,700
4) Investment in Securities 963,493 972,816 972,581 861,336 759,406 717,500
Domestic 758,065 762,063 753,028 651,702 565,409 520,005
Foreign 205,428 210,753 219,553 209,634 193,997 197,495
5) Other Operating Assets 132,822 130,409 187,654 260,373 143,064 129,311
Domestic 107,666 106,557 175,144 248,216 132,217 118,558
Foreign 25,156 23,852 12,510 12,157 10,847 10,753
-----------------------------------------------------------------------------------------------------------------------------------
Total Operating Assets 5,101,933 5,390,476 5,763,311 5,528,149 5,327,768 5,302,726
-----------------------------------------------------------------------------------------------------------------------------------
Allowance for Doubtful Receivables on Direct
Financing Leases and Possible Loan Losses (141,663) (145,856) (150,100) (152,887) (150,264) (136,961)
Allowance/Investment in Direct Financing Leases 4.0% 3.8% 3.6% 3.9% 3.8% 3.4%
and Installment Loans
-----------------------------------------------------------------------------------------------------------------------------------
Total Assets 5,693,269 6,002,015 6,365,717 6,350,219 6,091,100 6,050,290
-----------------------------------------------------------------------------------------------------------------------------------
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
Policy Liabilities 579,612 598,871 597,412 602,664 600,144 601,815
-----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 5,225,390 5,546,868 5,874,530 5,847,711 5,592,427 5,550,564
-----------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity 467,879 455,147 491,187 502,508 498,673 499,726
-----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities & Shareholders' Equity 5,693,269 6,002,015 6,365,717 6,350,219 6,091,100 6,050,290
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
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)
-----------------------------------------------------------------------------------------------------------------------------------
Revenues
1) Direct Financing Leases 29,611 28,916 31,445 31,942 30,742 32,737
Domestic 19,145 19,500 22,583 22,923 21,987 24,854
Foreign 10,466 9,416 8,862 9,019 8,755 7,883
2) Operating Leases 28,354 30,289 31,735 30,429 30,534 30,545
Domestic 20,419 22,672 22,851 21,790 22,012 21,808
Foreign 7,935 7,617 8,884 8,639 8,522 8,737
3) Interest on Loans and Investment Securities 28,898 27,860 31,119 34,085 30,757 33,284
Interest on loans 22,861 22,572 25,575 28,724 26,203 29,323
Domestic 15,218 14,814 17,561 22,542 19,795 22,089
Foreign 7,643 7,758 8,014 6,182 6,408 7,234
Interest on investment securities 6,037 5,288 5,544 5,361 4,554 3,961
Domestic 1,105 1,000 641 787 319 162
Foreign 4,932 4,288 4,903 4,574 4,235 3,799
4) Brokerage Commissions and Gains on Investment
Securities 4,045 4,451 3,266 6,605 5,127 2,800
Brokerage commissions 903 726 740 571 774 569
Gains on investment securities 3,142 3,725 2,526 6,034 4,353 2,231
5) Life Insurance Premiums and Related Investment
Income 40,287 45,625 29,748 36,673 32,946 38,886
Life insurance premiums 35,345 42,347 26,652 31,135 28,745 34,503
Related investment income 4,942 3,278 3,096 5,538 4,201 4,383
6) Residential Condominium Sales 28,290 4,729 7,420 17,639 11,666 18,076
Domestic 28,290 4,729 7,420 17,639 11,666 18,076
Foreign -- -- -- -- -- --
7) Interest Income on Deposits 473 537 244 120 177 135
8) Other Operating Revenues 19,409 10,769 13,115 20,334 19,008 17,308
Domestic 17,381 6,254 10,443 17,574 17,015 14,867
Foreign 2,028 4,515 2,672 2,760 1,993 2,441
------------------------------------------------------------------------------------------------------------------------------------
Total Revenues 179,367 153,176 148,092 177,827 160,957 173,771
------------------------------------------------------------------------------------------------------------------------------------
22
(millions of JPY)
-----------------------------------------------------------------------------------------------------------------------------------
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)
-----------------------------------------------------------------------------------------------------------------------------------
Expenses
1) Interest Expense 26,128 23,848 21,695 18,677 18,974 17,730
2) Depreciation-Operating Leases 18,692 18,691 19,430 20,234 19,429 19,424
3) Life Insurance Costs 36,123 42,806 28,002 32,855 29,649 34,775
4) Costs of Residential Condominium Sales 23,277 4,259 6,462 15,519 9,985 15,727
5) Other Operating Expenses 10,729 3,575 6,657 8,653 8,379 9,770
6) Selling, General and Administrative Expenses 29,591 28,668 32,294 35,763 34,163 35,666
7) Provision for Doubtful Receivables and
Possible Loan Losses 9,634 10,554 11,753 19,426 12,803 12,164
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
10) Foreign Currency Transaction Loss (Gain), Net 1,142 (1,439) 62 (1,125) 710 338
-----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 157,448 137,467 132,158 158,020 136,258 163,835
-----------------------------------------------------------------------------------------------------------------------------------
Operating Income 21,919 15,709 15,934 19,807 24,699 9,936
Equity in Net Income (Loss) of and Gain (Loss) on
Sales of Affiliates (870) 442 517 (419) 1,623 1,738
Income before Income Taxes 21,049 16,151 16,451 19,388 26,322 11,674
Provision for Income Taxes 10,740 6,557 7,189 8,417 11,374 5,796
Income before Cumulative Effect of a Change in
Accounting Principle 10,309 9,594 9,262 10,971 14,948 5,878
Cumulative Effect of a Change in Accounting Principle 133 -- -- -- 1,937 --
-----------------------------------------------------------------------------------------------------------------------------------
Net Income 10,442 9,594 9,262 10,971 16,885 5,878
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
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)
-----------------------------------------------------------------------------------------------------------------------------------
Direct Financing Leases: New receivables added 186,123 455,256 213,008 228,683 237,779 325,817
Domestic 147,350 402,643 152,409 175,567 172,957 274,881
Foreign 38,773 52,613 60,599 53,116 64,822 50,936
Direct Financing Leases: New equipment acquisitions 159,348 418,665 185,790 216,576 210,819 297,122
Domestic 126,350 373,740 130,801 167,821 151,062 251,883
Foreign 32,998 44,925 54,989 48,755 59,757 45,239
Installment Loans: New loans added 269,524 271,280 472,897 326,699 341,138 334,070
Domestic 201,626 226,464 425,048 291,529 273,867 300,963
Foreign 67,898 44,816 47,849 35,170 67,271 33,107
Operating Leases: New equipment acquisitions 47,872 37,336 42,619 18,376 20,870 40,656
Domestic 41,310 28,301 36,310 11,012 14,128 33,517
Foreign 6,562 9,035 6,309 7,364 6,742 7,139
Investment in Securities: New securities added 88,666 101,526 80,556 77,599 48,907 46,321
Domestic 77,125 75,703 77,225 74,195 38,346 44,804
Foreign 11,541 25,823 3,331 3,404 10,561 1,517
Other Operating Assets: New assets added 22,226 18,002 81,206 82,687 20,768 29,791
Domestic 16,428 12,206 76,287 75,982 15,475 29,403
Foreign 5,798 5,796 4,919 6,705 5,293 388
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
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)
-----------------------------------------------------------------------------------------------------------------------------------
Return on Equity (ROE)* 9.0% 8.3% 7.8% 8.8% 13.5% 4.7%
Return on Assets (ROA)* 0.74% 0.66% 0.60% 0.69% 1.09% 0.39%
Shareholders' Equity Ratio 8.2% 7.6% 7.7% 7.9% 8.2% 8.3%
Debt-to-Equity Ratio (times) 8.9 9.7 9.6 9.3 9.0 8.9
Book Value Per Share (yen) 5,724.89 5,567.69 5,874.75 6,007.52 5,961.30 5,973.44
Basic EPS (yen) 127.78 117.38 112.63 131.20 201.85 70.27
Diluted EPS (yen) 122.71 112.79 107.71 123.54 189.95 66.32
Number of Employees 10,209 11,359 11,307 11,271 11,820 11,859
-----------------------------------------------------------------------------------------------------------------------------------
*annualized
23
(millions of JPY)
------------------------------------------------------------------------------------------------------------------------------------
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)
------------------------------------------------------------------------------------------------------------------------------------
Domestic Operations Corporate Finance 27,420 26,897 31,459 33,018 31,465 33,079
Equipment Operating Leases 16,854 17,269 16,574 16,622 16,233 16,734
Real Estate Related Finance 6,898 5,955 7,399 11,330 13,995 11,708
Real Estate 33,160 9,239 14,994 28,123 18,983 26,331
Life Insurance 41,181 46,123 30,419 36,573 32,946 38,886
Other 10,975 11,546 11,396 15,222 12,773 14,386
-------------------------------------------------------------------------------
Sub-Total 136,488 117,029 112,241 140,888 126,395 141,124
-------------------------------------------------------------------------------
Foreign Operations
The Americas 17,747 19,891 18,523 19,034 14,739 12,536
Asia and Oceania 17,838 12,512 12,685 13,642 13,741 13,838
Europe 4,041 4,528 3,569 2,578 3,091 2,742
-------------------------------------------------------------------------------
Sub-Total 39,626 36,931 34,777 35,254 31,571 29,116
------------------------------------------------------------------------------------------------------------------------------------
Total Segment Revenues 176,114 153,960 147,018 176,142 157,966 170,240
------------------------------------------------------------------------------------------------------------------------------------
Domestic Operations Corporate Finance 11,403 12,441 11,602 12,620 10,411 14,089
Equipment Operating Leases 2,655 2,704 2,128 2,419 1,271 1,708
Real Estate Related Finance 323 80 1,752 3,499 6,106 3,804
Real Estate 4,587 (1,154) 870 1,539 2,735 (11,542)
Life Insurance 3,397 839 (347) 1,875 1,282 1,694
Other 800 1,705 739 1,697 2,554 4,372
-------------------------------------------------------------------------------
Sub-Total 23,165 16,615 16,744 23,649 24,359 14,125
-------------------------------------------------------------------------------
Foreign Operations The Americas (1,100) 1,010 (248) 1,148 1,229 (2,256)
Asia and Oceania 798 2,700 998 937 1,673 2,641
Europe 1,153 368 (47) (874) (545) (65)
-------------------------------------------------------------------------------
Sub-Total 851 4,078 703 1,211 2,357 320
------------------------------------------------------------------------------------------------------------------------------------
Total Segment Profits (Income before Income Taxes) 24,016 20,693 17,447 24,860 26,716 14,445
------------------------------------------------------------------------------------------------------------------------------------
Foreign Operations Corporate Finance 1,894,988 2,158,006 2,185,994 1,960,380 2,008,152 1,981,237
Equipment Operating Leases 136,531 136,713 145,626 147,444 141,905 142,964
Real Estate Related Finance 627,352 647,889 935,426 1,012,896 906,193 908,115
Real Estate 316,625 333,394 324,973 326,473 293,189 289,919
Life Insurance 557,393 583,579 574,403 543,738 497,593 570,983
Other 308,235 322,082 350,161 352,433 389,605 372,273
-------------------------------------------------------------------------------
Sub-Total 3,841,124 4,181,663 4,516,583 4,343,364 4,236,637 4,265,491
-------------------------------------------------------------------------------
Foreign Operations The Americas 808,165 777,428 818,723 794,330 695,351 713,300
Asia and Oceania 415,803 400,978 441,432 435,093 467,456 431,966
Europe 149,070 136,441 126,348 113,844 98,200 86,024
-------------------------------------------------------------------------------
Sub-Total 1,373,038 1,314,847 1,386,503 1,343,267 1,261,007 1,231,290
------------------------------------------------------------------------------------------------------------------------------------
Total Segment Assets 5,214,162 5,496,510 5,903,086 5,686,631 5,497,644 5,496,781
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24
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: October 28, 2002 By /s/ Masaru Hattori
------------------------------------
Masaru Hattori
Corporate Executive Officer
Accounting Department
General Affairs Department
ORIX Corporation