ORIX (8591) investor relations material

Executive summary

• Net income for the first half reached JPY 271.1 billion, up 48% year-over-year, achieving a record high and 71% of the original full-year forecast; annualized ROE reached 12.7%.

• All three business categories—finance, operation, and investment—achieved profit growth year-on-year, with strong capital recycling and portfolio optimization.

• The company raised its full-year net profit forecast to JPY 440 billion and expanded its share buyback program to JPY 150 billion.

• Major capital gains from the sale of Greenko and other assets, with strong performance in PE, insurance, and inbound-related businesses.

• Strategic acquisition of Hilco Global and launch of a joint PE fund with Qatar Investment Authority to strengthen asset management and private credit business.

Financial highlights

• First-half net income: JPY 271.1 billion (+48% YoY); pre-tax profit: JPY 391.5 billion (+JPY 134.5 billion YoY); segment profits up 42% YoY to JPY 409.4 billion.

• ROE annualized at 12.7% for the first half, up from 8.8% in the previous year; full-year forecast at 10.3%.

• Shareholder returns: DPS forecast raised to JPY 153.67; share buyback program expanded to JPY 150 billion; total payout ratio expected to rise to 73%.

• AUM reached JPY 88 trillion, progressing toward the JPY 100 trillion medium-term target.

• Shareholders' equity ratio improved to 25.2%.

Outlook and guidance

• Full-year net income forecast raised to JPY 440 billion; income before income taxes forecast at JPY 640 billion; ROE forecasted at 10.3%.

• Capital recycling and new investments for FY2026 projected at JPY 600–800 billion.

• Annual dividend per share expected to be the higher of a 39% payout ratio or JPY 120.01, with a potential increase to JPY 153.67 if net income reaches JPY 440 billion.

• Continued focus on portfolio optimization, asset-light strategy, and sustainable profit growth.

• Management remains committed to achieving 11% ROE and JPY 100 trillion AUM by FY2028.