FORM 6-K Table of Contents

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 November 2023

Commission File Number: 001-14856

ORIX Corporation

(Translation of Registrant's Name into English)

World Trade Center Bldg., SOUTH TOWER, 2-4-1 Hamamatsu-cho, 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 ☒  Form40-F ☐

Table of ContentsTable of Contents

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 : November 1, 2023

By

/s/ Yasuaki Mikami

Yasuaki Mikami

Member of the Board of Directors

Senior Managing Executive Officer

Responsible for Corporate Function Unit

Responsible for Work Style Reform Project

ORIX Corporation

Table of Contents

Consolidated Financial Results

April 1, 2023 - September 30, 2023

November 1, 2023

In preparing its consolidated financial information, ORIX Corporation (the "Company") and its subsidiaries have complied with generally accepted accounting principles in the United States of America.

This document may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on the Company's 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 most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission.

The Company believes that it may have been a "passive foreign investment company" for U.S. federal income tax purposes in the year to which these consolidated financial results relate by reason of the composition of its assets and the nature of its income. In addition, the Company may be a PFIC for the foreseeable future. Assuming that the Company is a PFIC, a U.S. holder of the shares or American depositary shares of the Company will be subject to special rules generally intended to eliminate any benefits from the deferral of U.S. federal income tax that a holder could derive from investing in a foreign corporation that does not distribute all of its earnings on a current basis. 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:

Investor Relations and Sustainability Department

ORIX Corporation

World Trade Center Bldg., SOUTH TOWER, 2-4-1 Hamamatsu-cho, Minato-Ku, Tokyo, 105-5135

JAPAN

Tel: +81-3-3435-3121 Fax: +81-3-3435-3154

E-mail: orix_corpcomm@orix.jp

Table of Contents

Consolidated Financial Results from April 1, 2023 to September 30, 2023

(U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries)

Corporate Name:

ORIX Corporation

Listed Exchanges:

Tokyo Stock Exchange (Securities No. 8591)

New York Stock Exchange (Trading Symbol : IX)

Head Office:

Tokyo JAPAN

Tel: +81-3-3435-3121

(URL https://www.orix.co.jp/grp/en/ir/)

1. Performance Highlights as of and for the Six Months Ended September 30, 2023

(1) Performance Highlights - Operating Results (Unaudited)

(millions of yen)

Total
Revenues		 Year-on-Year
Change		 Operating
Income		 Year-on-Year
Change		 Income before
Income Taxes		 Year-on-Year
Change		 Net Income
Attributable to
ORIX Corporation
Shareholders		 Year-on-Year
Change

September 30, 2023

1,359,735 (0.4 )% 164,035 8.7 % 184,467 11.0 % 128,100 4.7 %

September 30, 2022

1,364,816 -  150,911 -  166,124 -  122,310 - 

"Comprehensive Income Attributable to ORIX Corporation Shareholders" was ¥298,830 million for the six months ended September 30, 2023 (year-on-year change was a 9.9% decrease) and ¥331,731 million for the six months ended September 30, 2022.

*Note 1:

Accounting Standards Update 2018-12 ("Targeted Improvements to the Accounting for Long-Duration Contracts"-ASC 944 ("Financial Services-Insurance")) (hereinafter, "LDTI") has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach. Although figures for the six months ended September 30, 2022 have been retrospectively restated, the year-on-year change rate has not been presented.

Basic
Earnings Per Share		 Diluted
Earnings Per Share

September 30, 2023

109.92 109.76

September 30, 2022

102.96 102.85
*Note 2:

Unless otherwise stated, all amounts shown herein are in millions of Japanese yen, except for per share and dividend amounts, which are in single yen.

(2) Performance Highlights - Financial Position (Unaudited)

Total
Assets		 Total
Equity		 Shareholders'
Equity		 Shareholders'
Equity Ratio

September 30, 2023

15,795,220 3,841,996 3,761,098 23.8 %

March 31, 2023

15,289,385 3,614,322 3,543,607 23.2 %
*Note 3:

"Shareholders' Equity" refers to "Total ORIX Corporation Shareholders' Equity."

"Shareholders' Equity Ratio" is the ratio of "Total ORIX Corporation Shareholders' Equity" to "Total Assets."

LDTI standard has been adopted since April 1, 2023, with the transition date of April 1,2021, using the modified retrospective transition approach.

2. Dividends (Unaudited)

First
Quarter-end		 Second
Quarter-end		 Third
Quarter-end		 Year-end Total

March 31, 2023

-  42.80 -  42.80 85.60

March 31, 2024

-  42.80 -  -  - 

March 31, 2024 (Est.)

-  -  -  51.20 94.00

3. Forecast for the Year Ending March 31, 2024 (Unaudited)

Net Income
Attributable to
ORIX Corporation Shareholders		 Year-on-Year
Change

March 31, 2024

330,000 20.8 %
*Note4:

Although forward-looking statements in this document are based on information currently available to ORIX Corporation and are based on assumptions deemed reasonable by ORIX Corporation, actual financial results may differ materially due to various factors. Readers are urged not to place undue reliance on such forward-looking statements.

Factors causing a result that differs from forward-looking statements include, but are not limited to, those described under "Risk Factors" in our Form 20-F submitted to the U.S. Securities and Exchange Commission.

4. Other Information

(1) Changes in Significant Consolidated Subsidiaries Yes ( )  No ( x )

Addition - None (        )

Exclusion - None (        )
(2) Adoption of Simplified Accounting Method Yes ( )  No ( x )
(3) Changes in Accounting Principles, Procedures and Disclosures

1. Changes due to adoption of new accounting standards

Yes ( x )  No ( )

2. Other than those above

Yes ( )  No ( x )

(4) Number of Issued Shares (Ordinary Shares)

1. The number of issued shares, including treasury stock, was 1,234,849,342 as of September 30, 2023, and 1,234,849,342 as of March 31, 2023.

2. The number of treasury stock was 73,850,720 as of September 30, 2023, and 61,742,607 as of March 31, 2023.

3. The average number of outstanding shares was 1,165,399,765 for the six months ended September 30, 2023, and 1,187,884,502 for the six months ended September 30, 2022.

The Company's shares held through the Board Incentive Plan Trust (2,800,866 shares as of September 30, 2023, and 2,800,866 shares as of March 31, 2023) are not included in the number of treasury stock as of the end of the periods, but are included in the average number of shares outstanding as treasury stock that are deducted from the basis of the calculation of per share data.

* These consolidated financial results from April 1, 2023 to September 30, 2023 are not subject to certified public accountant's or audit firm's quarterly review.

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1. Summary of Consolidated Financial Results

(1) Financial Highlights

Financial Results for the Six Months Ended September 30, 2023

Six months ended
September 30, 2022		 Six months ended
September 30, 2023		 Change
Amount Percent

Total Revenues

(millions of yen) 1,364,816 1,359,735 (5,081 ) (0 )%

Total Expenses

(millions of yen) 1,213,905 1,195,700 (18,205 ) (1 )%

Income before Income Taxes

(millions of yen) 166,124 184,467 18,343 11 %

Net Income Attributable to ORIX Corporation Shareholders

(millions of yen) 122,310 128,100 5,790 5 %

Earnings Per Share (Basic)

(yen) 102.96 109.92 6.96 7 %

                   (Diluted)

(yen) 102.85 109.76 6.91 7 %

ROE (Annualized) *1

(%) 7.1 7.0 (0.1 ) - 

ROA (Annualized) *2

(%) 1.68 1.65 (0.03 ) - 
*Note 1:

ROE is the ratio of Net Income Attributable to ORIX Corporation Shareholders for the period to average ORIX Corporation Shareholders' Equity.

*Note 2:

ROA is calculated based on Net Income Attributable to ORIX Corporation Shareholders.

*Note 3:

Accounting Standards Update 2018-12 ("Targeted Improvements to the Accounting for Long-Duration Contracts"-ASC 944 ("Financial Services-Insurance")) (hereinafter, "LDTI") has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach.

Overview of Business Performance (April 1, 2023 to September 30, 2023)

Total revenues for the six months ended September 30, 2023 (hereinafter, "the second consolidated period") remained relatively flat at ¥1,359,735 million compared to ¥1,364,816 million during the same period of the previous fiscal year due to a decrease in sales of goods and real estate offset by increases in finance revenues, life insurance premiums and related investment income and services income.

Total expenses decreased 1% to ¥1,195,700 million compared to ¥1,213,905 million during the same period of the previous fiscal year due to a decrease in costs of goods and real estate sold offset by increases in interest expense and selling, general and administrative expenses.

Equity in net income of affiliates increased by ¥10,180 million to ¥16,804 million compared to the same period of the previous fiscal year, and gains on sales of subsidiaries and affiliates and liquidation losses, net decreased by ¥4,961 million to ¥3,628 million compared to the same period of the previous fiscal year.

Due to the above results, income before income taxes for the second consolidated period increased 11% to ¥184,467 million compared to ¥166,124 million during the same period of the previous fiscal year and net income attributable to ORIX Corporation shareholders increased 5% to ¥128,100 million compared to ¥122,310 million during the same period of the previous fiscal year.

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Segment Information

Total segment profits for the second consolidated period increased 11% to ¥191,010 million compared to the same period of the previous fiscal year.

Since April 1, 2023, segment profits have been calculated with a broadened scope of profit sharing for inter-segment collaboration. As a result, segment data for the six months ended September 30, 2022 has been retrospectively restated.

LDTI standard has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach. As a result of the adoption of LDTI, Insurance segment data for the previous fiscal year has been retrospectively restated. For further information, see "2. Financial Information (6) Changes in Accounting Policies - (Adoption of New Accounting Standards)".

Segment information for the second consolidated period is as follows:

Corporate Financial Services and Maintenance Leasing: Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

36,917 40,266 3,349 9
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

1,514,070 1,523,394 9,324 1

Segment profits increased 9% to ¥40,266 million compared to the same period of the previous fiscal year due to an increase in gains on investment securities and dividends.

Segment assets increased 1% to ¥1,523,394 million compared to the end of the previous fiscal year due to an increase in net investment in leases and an increase in investment in operating leases, despite a decrease in installment loans.

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Real Estate: Real estate development, rental and management; facility operations; real estate asset management

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

18,949 26,867 7,918 42
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

935,027 1,004,443 69,416 7

Segment profits increased 42% to ¥26,867 million compared to the same period of the previous fiscal year due to an increase in services income and an increase in sales of goods and real estate.

Segment assets increased 7% to ¥1,004,443 million compared to the end of the previous fiscal year due to an increase in inventories.

PE Investment and Concession: Private equity investment; concession

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

4,011 9,674 5,663 141
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

605,471 808,757 203,286 34

Segment profits increased 141% to ¥9,674 million compared to the same period of the previous fiscal year due to an increase in equity in net income(loss) of affiliates at our three airports in Kansai in our concession business.

Segment assets increased 34% to ¥808,757 million compared to the end of the previous fiscal year due to an increase in investment in securities and an increase in installment loans.

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Environment and Energy: Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels and battery energy storage system; recycling and waste management

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

8,718 8,138 (580 ) (7 )
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

773,617 833,262 59,645 8

Segment profits decreased 7% to ¥8,138 million compared to the same period of the previous fiscal year due an increase in interest expense on investments in Elawan Energy S.L., despite a decrease in the loss in the electric power retailing business.

Segment assets increased 8% to ¥833,262 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects.

Insurance: Life insurance

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

14,785 37,038 22,253 151
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

2,050,412 2,105,725 55,313 3

Segment profits increased 151% to ¥37,038 million compared to the same period of the previous fiscal year due to a decrease in life insurance costs as a result of reduced payouts to policy holders compared to the same period of the previous fiscal year.

Segment assets increased 3% to ¥2,105,725 million compared to the end of the previous fiscal year due to an increase in investment in securities.

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Banking and Credit: Banking; consumer finance

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

15,215 16,471 1,256 8
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

2,698,747 2,705,802 7,055 0

Segment profits increased 8% to ¥16,471 million compared to the same period of the previous fiscal year due to an increase in gains on investment securities and dividends and an increase in finance revenues, despite an increase in the provision for credit losses.

Segment assets totaled ¥2,705,802 million, remaining relatively unchanged compared to the end of the previous fiscal year.

Aircraft and Ships: Aircraft investment and management; ship-related finance and investment

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

10,649 10,415 (234 ) (2 )
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

742,890 907,147 164,257 22

Segment profits decreased 2% to ¥10,415 million compared to the same period of the previous fiscal year due to a decrease in operating leases revenues in our ship-related business resulting from the sale of owned vessels.

Segment assets increased 22% to ¥907,147 million compared to the end of the previous fiscal year due to an increase in investment in operating leases and an increase in investment in affiliates resulting from foreign exchange effects.

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ORIX USA: Finance, investment and asset management in the Americas

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

21,596 16,332 (5,264 ) (24 )
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

1,462,067 1,525,455 63,388 4

Segment profits decreased 24% to ¥16,332 million compared to the same period of the previous fiscal year due to a decrease in gains on investment securities and dividends, and the absence of gains on the sales of subsidiaries and affiliates due to the sale of certain investees recorded in the same period of the previous fiscal year, despite an increase in services income.

Segment assets increased 4% to ¥1,525,455 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects, despite a decrease in installment loans.

ORIX Europe: Asset management of global equity and fixed income

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

16,419 13,362 (3,057 ) (19 )
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

417,941 453,037 35,096 8

Segment profits decreased 19% to ¥13,362 million compared to the same period of the previous fiscal year due to an increase in interest expense on the investment in ORIX Corporation Europe N.V.

Segment assets increased 8% to ¥453,037 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects.

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Asia and Australia: Finance and investment businesses in Asia and Australia

Six months ended
September 30, 2022
(millions of yen)		 Six months ended
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Profits

24,470 12,447 (12,023) (49)
As of
March 31, 2023
(millions of yen)		 As of
September 30, 2023
(millions of yen)		 Change
Amount
(millions of yen)		 Percent
(%)

Segment Assets

1,395,096 1,569,913 174,817 13

Segment profits decreased 49% to ¥12,447 million compared to the same period of the previous fiscal year due to the absence of gains on the sales of subsidiaries and affiliates through the sale of certain investees recorded in the same period of the previous fiscal year and a decrease in equity in net income(loss) of affiliates.

Segment assets increased 13% to ¥1,569,913 million compared to the end of the previous fiscal year, primarily due to foreign exchange effects.

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(2) Consolidated Financial Condition

Summary of Assets, Liabilities, Shareholders' Equity

As of
March 31, 2023		 As of
September 30, 2023		 Change
Amount Percent

Total Assets

(millions of yen) 15,289,385 15,795,220 505,835 3 %

(Segment Assets)

12,595,338 13,436,935 841,597 7 %

Total Liabilities

(millions of yen) 11,674,118 11,951,381 277,263 2 %

(Short-term and Long-term Debt)

5,718,519 6,034,623 316,104 6 %

(Deposits)

2,246,345 2,223,592 (22,753 ) (1 )%

Shareholders' Equity *1

(millions of yen) 3,543,607 3,761,098 217,491 6 %

Shareholders' Equity Per Share *2

(yen) 3,027.93 3,247.37 219.44 7 %
*Note 1:

Shareholders' Equity refers to ORIX Corporation Shareholders' Equity based on U.S. GAAP.

*Note 2:

Shareholders' Equity Per Share is calculated using total ORIX Corporation Shareholders' Equity.

*Note 3:

LDTI has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach.

Total assets increased 3% to ¥15,795,220 million compared to the end of the previous fiscal year due to increases in net investment in leases, investment in operating leases, investment in securities and investments in affiliates despite a decrease in cash and cash equivalents. In addition, segment assets increased 7% to ¥13,436,935 million compared to the end of the previous fiscal year.

Total liabilities increased 2% to ¥11,951,381 million compared to the end of the previous fiscal year due to increases in short- and long-term debt despite decreases in trade notes, accounts and other payable and policy liabilities and policy account balances.

Shareholders' equity increased 6% to ¥3,761,098 million compared to the end of the previous fiscal year.

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2. Financial Information

(1) Condensed Consolidated Balance Sheets (Unaudited)

(millions of yen)

Assets

As of
March 31, 2023		 As of
September 30, 2023

Cash and Cash Equivalents

1,231,860 915,107

Restricted Cash

135,048 139,123

Net Investment in Leases

1,087,563 1,165,789

Installment Loans

3,877,602 3,946,693

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2023

¥197,041 million

September 30, 2023

¥149,390 million

Allowance for Credit Losses

(64,723 ) (69,046 )

Investment in Operating Leases

1,537,178 1,723,328

Investment in Securities

2,940,858 3,187,963

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2023

¥22,874 million

September 30, 2023

¥26,848 million

The amounts which are associated to available-for-sale debt securities are as follows:

March 31, 2023

Amortized Cost

¥2,488,858 million

Allowance for Credit Losses

¥(144) million

September 30, 2023

Amortized Cost

¥2,709,258 million

Allowance for Credit Losses

¥(468) million

Property under Facility Operations

620,994 635,070

Investment in Affiliates

1,000,704 1,109,253

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2023

¥2,511 million

September 30, 2023

¥5,003 million

Trade Notes, Accounts and Other Receivable

441,803 373,780

Inventories

169,021 222,906

Office Facilities

253,649 252,669

Other Assets

2,057,828 2,192,585

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2023

¥4,676 million

September 30, 2023

¥3,670 million

Total Assets

 15,289,385 15,795,220

Liabilities and Equity

Short-term Debt

508,796 586,379

Deposits

2,246,345 2,223,592

Trade Notes, Accounts and Other Payable

366,851 329,843

Policy Liabilities and Policy Account Balances

1,832,057 1,783,074

The amounts which are measured at fair value by electing the fair value option are as follows:

March 31, 2023

¥163,734 million

September 30, 2023

¥160,177 million

Current and Deferred Income Taxes

454,262 487,945

Long-term Debt

5,209,723 5,448,244

Other Liabilities

1,056,084 1,092,304

Total Liabilities

 11,674,118 11,951,381

Redeemable Noncontrolling Interests

 945 1,843

Commitments and Contingent Liabilities

Common Stock

221,111 221,111

Additional Paid-in Capital

233,169 233,679

Retained Earnings

3,054,448 3,132,339

Accumulated Other Comprehensive Income

156,135 326,700

Treasury Stock, at Cost

(121,256 ) (152,731 )

Total ORIX Corporation Shareholders' Equity

 3,543,607 3,761,098

Noncontrolling Interests

 70,715 80,898

Total Equity

 3,614,322 3,841,996

Total Liabilities and Equity

     15,289,385     15,795,220

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Note 1:

Breakdown of Accumulated Other Comprehensive Income

As of
March 31, 2023		 As of
September 30, 2023

Accumulated Other Comprehensive Income (Loss)

Net unrealized gains (losses) on investment in securities

(183,034 ) (283,445 )

Impact of changes in policy liability discount rate

164,516 275,092

Debt valuation adjustments

275 152

Defined benefit pension plans

(3,617 ) (3,706 )

Foreign currency translation adjustments

155,912 314,152

Net unrealized gains on derivative instruments

22,083 24,455

Total

        156,135 326,700
Note 2:

LDTI standard has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach.

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(2) Condensed Consolidated Statements of Income (Unaudited)

(millions of yen)

Six months ended
September 30, 2022		 Six months ended
September 30, 2023
Revenues :

Finance revenues

153,151 170,937

Gains (Losses) on investment securities and dividends

(746 ) 11,334

Operating leases

249,144 259,949

Life insurance premiums and related investment income

263,211 285,738

Sales of goods and real estate

265,020 173,800

Services income

435,036 457,977

Total Revenues

 1,364,816 1,359,735
Expenses :

Interest expense

51,473 90,891

Costs of operating leases

164,841 176,894

Life insurance costs

220,715 222,097

Costs of goods and real estate sold

232,209 124,795

Services expense

267,774 267,177

Other (income) and expense

6,941 2,503

Selling, general and administrative expenses

267,954 302,265

Provision for credit losses

1,674 8,524

Write-downs of long-lived assets

253 538

Write-downs of securities

71 16

Total Expenses

 1,213,905 1,195,700

Operating Income

 150,911 164,035

Equity in Net Income (Loss) of Affiliates

6,624 16,804

Gains on Sales of Subsidiaries and Affiliates and Liquidation Losses, net

8,589 3,628

Income before Income Taxes

 166,124 184,467

Provision for Income Taxes

39,981 53,827

Net Income

 126,143 130,640

Net Income Attributable to the Noncontrolling Interests

 3,821 2,502

Net Income Attributable to the Redeemable Noncontrolling Interests

 12 38

Net Income Attributable to ORIX Corporation Shareholders

 122,310 128,100
Note:

LDTI standard has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach.

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Table of Contents

(3) Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(millions of yen)
Six months ended
September 30, 2022		 Six months ended
September 30, 2023

Net Income :

 126,143 130,640

Other comprehensive income (loss), net of tax:

Net change of unrealized gains (losses) on investment in securities

(143,867 ) (100,412 )

Impact of changes in policy liability discount rate

159,366 110,576

Net change of debt valuation adjustments

60 (123 )

Net change of defined benefit pension plans

(316 ) (89 )

Net change of foreign currency translation adjustments

185,095 163,583

Net change of unrealized gains (losses) on derivative instruments

18,531 2,408

Total other comprehensive income

218,869 175,943

Comprehensive Income

 345,012 306,583

Comprehensive Income Attributable to the Noncontrolling Interests

 13,181 7,553

Comprehensive Income Attributable to the Redeemable Noncontrolling Interests

 100 200

Comprehensive Income Attributable to ORIX Corporation Shareholders

 331,731 298,830
Note:

LDTI standard has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach.

(4) Assumptions for Going Concern

There is no corresponding item.

(5) Significant Changes in Shareholders' Equity

There is no corresponding item.

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Table of Contents

(6) Changes in Accounting Policies

(Adoption of New Accounting Standards)

In August 2018, Accounting Standards Update 2018-12 ("Targeted Improvements to the Accounting for Long-Duration Contracts"-ASC 944 ("Financial Services-Insurance")) was issued, and the original effective date was deferred by two years by related amendments which were issued thereafter. These updates change the recognition, measurement, presentation and disclosure requirements for long-duration contracts issued by an insurance entity. These updates require an insurance entity to review and, if there is a change, update cash flow assumptions at least annually and to update the discount rate used for the liability for future policy benefits at each reporting date for nonparticipating traditional long-duration and limited-payment contracts. The effect of updating the discount rate is recognized in other comprehensive income (loss). These updates also require market risk benefits to be measured at fair value, and simplify amortization of deferred policy acquisition costs. Furthermore, these updates require additional disclosures for long-duration contracts. These updates are effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early application is permitted. For the liability for future policy benefits and deferred policy acquisition costs, these updates are applied to contracts in force as of the beginning of the earliest period presented (hereinafter, "the transition date" of these updates) on a modified retrospective basis, and an insurance entity may elect to apply retrospectively. For the market risk benefits, these updates are applied retrospectively at the transition date, and the difference between fair value and carrying value requires an adjustment to retained earnings at the transition date. The cumulative effect of changes in the discount rates between contract inception date and the transition date should be recognized in accumulated other comprehensive income at the transition date. The Company and its subsidiaries adopted these updates on April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach. Upon adoption of these updates, the measurement method of the liability for future policy benefits, etc. have been changed. In addition, as of the transition date, the effect of the adoption on the Company and its subsidiaries' financial position was an increase of ¥28,937 million in policy liabilities and policy account balances and a decrease of ¥24,641 million in impact of changes in policy liability discount rate (accumulated other comprehensive income (loss)) on the consolidated balance sheet. These were due to changes in the applicable discount rate resulting from fluctuation in interest rates (mainly a decline in Japanese yen interest rates). The balance of deferred policy acquisition costs (included in other assets) immediately before the transition date were carried forward upon transition. As of and for the fiscal year ended March 31, 2022, the effect of the adoption of LDTI on the Company and its subsidiaries' results of operations and financial position was an increase of ¥10,012 million in deferred policy acquisition costs (included in other assets), a decrease of ¥50,925 million in policy liabilities and policy account balances, an increase of ¥37,535 million in impact of changes in policy liability discount rate (accumulated other comprehensive income (loss)), and an increase of ¥5,241 million in retained earnings in the consolidated balance sheet, and a decrease of ¥4,571 million in life insurance costs in the consolidated statement of income. These were due mainly to changes in the applicable discount rate resulting from fluctuation in interest rates (mainly an increase in US dollar interest rates), and a change in the amortization period of deferred policy acquisition costs. Furthermore, as of and for the fiscal year ended March 31, 2023, the effect of the adoption of these updates on the Company and its subsidiaries' results of operations and financial position was an increase of ¥23,194 million in deferred policy acquisition costs (included in other assets), a decrease of ¥233,309 million in policy liabilities and policy account balances, an increase of ¥164,516 million in impact of changes in policy liability discount rate (accumulated other comprehensive income (loss)), and an increase of ¥22,506 million in retained earnings in the consolidated balance sheet, and a decrease of ¥25,010 million in life insurance costs in the consolidated statement of income. These were due mainly to changes in the applicable discount rate resulting from fluctuation in interest rates (mainly an increase in US dollar interest rates), reversals of policy liabilities and policy account balances due to update net insurance premium rates (resulting from variances between actual and expected benefits paid), and changes in the amortization period of deferred policy acquisition costs.

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Table of Contents

(7) Segment Information (Unaudited)

Segment Information by Sector

(millions of yen)
Six Months ended
September 30, 2022		 Six Months ended
September 30, 2023		 March 31, 2023 September 30, 2023
Segment
Revenues		 Segment
Profits		 Segment
Revenues		 Segment
Profits		 Segment
Assets		 Segment
Assets

Corporate Financial Services and Maintenance Leasing

211,427 36,917 220,247 40,266 1,514,070 1,523,394

Real Estate

190,487 18,949 219,293 26,867 935,027 1,004,443

PE Investment and Concession

250,873 4,011 172,980 9,674 605,471 808,757

Environment and Energy

110,914 8,718 81,972 8,138 773,617 833,262

Insurance

265,870 14,785 288,586 37,038 2,050,412 2,105,725

Banking and Credit

40,944 15,215 42,727 16,471 2,698,747 2,705,802

Aircraft and Ships

28,496 10,649 29,229 10,415 742,890 907,147

ORIX USA

79,932 21,596 88,089 16,332 1,462,067 1,525,455

ORIX Europe

89,836 16,419 104,059 13,362 417,941 453,037

Asia and Australia

92,434 24,470 105,238 12,447 1,395,096 1,569,913

Segment Total

 1,361,213 171,729 1,352,420 191,010 12,595,338 13,436,935

Difference between Segment Total and Consolidated Amounts

3,603 (5,605 ) 7,315 (6,543 ) 2,694,047 2,358,285

Consolidated Amounts

 1,364,816 166,124 1,359,735 184,467     15,289,385     15,795,220
Note 1:

The Company evaluates the performance of segments based on income before income taxes, adjusted for net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests before applicable tax effect. Tax expenses are not included in segment profits.

Note 2:

Since April 1, 2023,segment profits have been calculated with a broadened scope of profit sharing for inter-segment collaboration. As a result, segment data for the six months ended September 30, 2022 has been retrospectively restated.

Note 3:

LDTI standard has been adopted since April 1, 2023, with the transition date of April 1, 2021, using the modified retrospective transition approach. As a result of the adoption of LDTI, Insurance segment data for the previous fiscal year has been retrospectively restated. For further information, see "2. Financial Information (6) Changes in Accounting Policies - (Adoption of New Accounting Standards)".

Note 4:

Inter-segment transactions are included in segment revenues, and eliminations of inter-segment transactions are included in the difference between segment total and consolidated amounts.

(8) Subsequent Events

There are no material subsequent events.

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ORIX Corporation published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 10:08:58 UTC.