Overview of Latest Financial Results

With the organizational change on April 1, 2023, the Group separated and newly established the Environmental Infrastructure segment from the Specialty Financing segment with the aim of strengthening and expanding environmental energy businesses, such as renewable energy in Japan and overseas, to strongly support business strategy toward decarbonization, and changed its operating segments and other matters. With regard to the Mobility & Fleet Management segment, we renamed it to the Automobility segment. In addition, in the Medium-Term Management Plan 2027 adopted by the Company’s Board of Directors meeting held on May 12, 2023, we decided to align financial targets with net income-based figures.

In line with these changes, effective from the first quarter of the fiscal year ending March 31, 2024, the Group changed the reportable segments to the five segments, Equipment Leasing, Automobility, Specialty Financing, International Business, and Environmental Infrastructure. In addition, segment income was changed from ordinary income to net income attributable to owners of parent.

Revenues for each segment represent “revenues from customers,” and segment income or loss represents the amount for the “reportable segment.”

The year-on-year comparisons are made with the figures of the previous fiscal year based on the changed classification.

Revenues decreased ¥17,600 million, or 4.9%, to ¥343,400 million, and segment income decreased ¥100 million, or 0.6%, to ¥17,300 million, respectively, from the same period of the previous fiscal year. The balance of segment assets decreased ¥76,500 million, or 5.9%, to ¥1,210,600 million from the end of the previous fiscal year. The decrease was mainly because of the transition of Orico Business Leasing Co., Ltd. (hereinafter “OBL”), which was a consolidated subsidiary of the Company, to an equity-method affiliate.

Revenues decreased ¥3,000 million, or 1.1%, to ¥262,200 million, and segment income increased ¥4,100 million, or 41.0%, to ¥14,100 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly because of a significant improvement in profitability as a result of promoting highly efficient operations in the car rental business and an increase in gains on sales of lease and rental vehicles. The balance of segment assets decreased ¥129,200 million, or 21.1%, to ¥482,300 million from the end of the previous fiscal year. The decrease was mainly because of the transition of Orico Auto Leasing Co., Ltd. (hereinafter “OAL”), which was a consolidated subsidiary of the Company, to an equity-method affiliate.

Revenues increased ¥36,000 million, or 18.9%, to ¥226,600 million, and segment income amounted to ¥24,000 million (segment loss of ¥26,700 million in the same period of the previous fiscal year mainly caused by the recording of impairment loss on Russia-related aircraft). The balance of segment assets increased ¥422,700 million, or 17.0%, to ¥2,913,300 million from the end of the previous fiscal year mainly caused by foreign exchange fluctuations.

Revenues increased ¥22,000 million, or 21.1%, to ¥126,200 million, and segment income amounted to ¥6,600 million (segment loss of ¥8,900 million in the same period of the previous fiscal year mainly caused by the recording of a loss on valuation of operational investment securities held by consolidated subsidiaries). The balance of segment assets increased ¥124,700 million, or 19.0%, to ¥780,400 million from the end of the previous fiscal year mainly caused by foreign exchange fluctuations.

Revenues increased ¥7,500 million, or 20.3%, to ¥44,300 million, and segment income increased ¥2,900 million, or 490.7%, to ¥3,500 million, respectively, from the same period of the previous fiscal year. The increase in segment income was mainly due to bad debt expense and the elimination of trial operating cost recorded in the same period of the previous fiscal year. The balance of segment assets decreased ¥15,500 million, or 5.6%, to ¥262,400 million from the end of the previous fiscal year.