ORIX CORPORATION (IX) 2026 Q4 法說會逐字稿

Thank you very much for joining us. This is the financial results briefing for the fiscal year ended March 2026 of ORIX Corporation. I will be the facilitator. I am Uchida, General Manager of Corporate Communications Department. So let me first introduce the speakers. Hidetake Takahashi, Member of The Board of Directors, Representative Executive Officer, President and CEO; Masataka Yamada; Senior Managing Executive Officer, CFO and CSO.

非常感謝各位撥冗參加。這是 ORIX 株式會社截至 2026 年 3 月止會計年度的財務業績說明會。我將擔任主持人。我是內田，企業溝通部總經理。那麼我先介紹出席講者。董事會成員、代表執行役、社長兼 CEO 高橋英岳；以及山田正隆，資深常務執行役員、CFO 兼 CSO。

So those 2 gentlemen will be presenting. In addition, there are four attendees: Mr. Satoru Matsuzaki, the member of the Board of Directors, Deputy President, Executive Officer, COO of Japan and APAC; Yoshiteru Suzuki Managing Executive Officer, COO of USA and Europe; Shuji Irie, Senior managing Executive Officer, COO of Infrastructure Business Unit; Kazuki Yamamoto, Operating Officer, Corporate Strategy and Management Unit, Head of Corporate Planning, Investor Relations and Sustainability. So those 4 people will be joining. First, I will call upon Mr. Takahashi and Mr. Yamada to present, and then we take questions. We plan to spend about 90 minutes in total.

以上兩位將進行簡報。此外，另有四位與會者：董事會成員、副社長、執行役員、日本與亞太區 COO 松崎悟；常務執行役員、美國與歐洲 COO 鈴木善照；資深常務執行役員、基礎建設事業單位 COO 入江修司；以及執行役員、企業策略與管理單位、企業企劃／投資人關係／永續發展主管 山本一樹。以上四位也將一同出席。首先請高橋先生與山田先生進行說明，之後進入問答。全程預計約 90 分鐘。

Now over to you, Mr. Takahashi.

那麼交給高橋先生。

Good afternoon, ladies and gentlemen. And again, thank you very much for joining us despite a very busy schedule for our group's financial results briefing. I'm Takahashi, Group CEO. For the fiscal year ended March 2026, the uncertainty has become the norm that was a macroeconomic environment. But for us, it was the first year toward realizing our long-term vision and also an important year of management transition. And we spent 12 months so far, and we have made steady steps forward and made progress toward our goals.

各位女士、先生，下午好。再次感謝各位在百忙之中參加本集團的財務業績說明會。我是集團 CEO 高橋。截至 2026 年 3 月止會計年度，宏觀經濟環境的不確定性已成為常態。但對我們而言，這是邁向實現長期願景的第一年，同時也是經營交接的重要一年。在過去 12 個月中，我們穩健向前邁進，並朝目標取得進展。

And we did the earnings announcement just now, and thanks for your support, we were able to achieve record highs for both net income and market capitalization. A robust organization and management structure are essential in order to steadily execute our growth strategy going forward. To this end, we introduced organizational reform from January 1 this year and implemented a CxO system as of 1st of April. We have recruited Yamada from outside of the company as CFO/CSO.

我們剛剛已發布盈餘公告；在各位支持下，我們的淨利與市值雙雙創下歷史新高。為了今後能穩健執行成長策略，健全的組織與經營體制至關重要。為此，我們自今年 1 月 1 日起導入組織改革，並自 4 月 1 日起實施 CxO 制度。我們也從公司外部延攬山田擔任 CFO／CSO。

Additionally, we reviewed guidelines and expanded the investment and financing authority delegated to each business division, enabling faster and accountable decision-making. Furthermore, with the CFO and CRO taking the lead in maintaining strong financial discipline and sophisticated risk management, we aim to take good risks speedily and proactively to achieve growth at a new level. And that's just for the opening remarks, and I would like to hand over to our CFO, Yamada, who will explain the results for the fiscal year ending March '26 and the guidance for the fiscal year ending March 2027.

此外，我們檢視相關準則，並擴大授權各事業部門的投資與融資決策權限，以加速決策並強化責任歸屬。同時，在 CFO 與 CRO 主導下維持嚴謹的財務紀律與更精緻的風險管理，我們希望能迅速且主動地承擔適當風險，將成長推升至新層次。以上為開場致詞，接下來我想交由 CFO 山田說明截至 2026 年 3 月止會計年度的業績，以及截至 2027 年 3 月止會計年度的展望指引。

Thank you for the introduction. I'm CFO and CSO, Masataka Yamada. Thank you for this opportunity. And please refer to Page 2 of results presentation on the screen in front of you. These are the points I would like to cover during today's briefing. There are 3, as you can see. Number one, FY26 March results and FY27 March guidance and FY26 March in review. And the third point is initiative for FY27 March. I would like to discuss the first topic, FY26 March results and the 27 March guidance, and then CEO will follow and explain the second and third points. Please proceed to Page 3.

感謝介紹。我是 CFO 兼 CSO 山田正隆。感謝各位給我這個機會。請各位參閱眼前螢幕上的業績簡報第 2 頁。這是我今天簡報想涵蓋的重點。如各位所見，共有三項。第一，2026 年 3 月期業績與 2027 年 3 月期指引，以及 2026 年 3 月期回顧。第三項是 2027 年 3 月期的各項措施。我將先說明第一個主題：2026 年 3 月期業績與 2027 年 3 月期指引；接著由 CEO 說明第二與第三項。請翻到第 3 頁。

These are the slides for the fiscal year ended March 26. Please look at the graph on the left. This shows ROE and net income for full year. Net income for FY26 March was JPY447.3 billion, exceeding the full year forecast of JPY440 billion that was revised upward at the first half results that was announced in November last year. This marks the third year in a row that ORIX achieved record profits. This represents an increase of JPY95.6 billion or 27% in net income compared to the previous year. ROE was 10.4%, up 1.6 percentage-points from the prior year. Q4 net income was JPY57.6 billion.

這些是截至 2026 年 3 月止會計年度的投影片。請看左側圖表。此處顯示全年 ROE 與淨利。2026 年 3 月期淨利為 4,473 億日圓，超過去年 11 月公布上半年業績時上修後的全年預測 4,400 億日圓。這是 ORIX 連續第三年創下歷史新高獲利。與前一年度相比，淨利增加 956 億日圓，增幅 27%。ROE 為 10.4%，較前一年度上升 1.6 個百分點。第四季淨利為 576 億日圓。

We recorded a total impairment of JPY97.2 billion, primarily at ORIX USA, resulting in a lower net income compared to the JPY118.6 billion posted in the third quarter. At OCP, in the ORIX USA segment, OCP is ORIX Capital Partners, we are proceeding with a phased withdrawal from the PE business and capital recycling efforts. As a result, we recorded goodwill impairment in the fourth quarter. That's the major factor. Next, please proceed to Page 4. I would like to explain ORIX pretax profits for the fiscal year ended March '26 using 3 categories: finance, operation and investments.

我們認列合計 972 億日圓的減損，主要發生在 ORIX USA，使得淨利低於第三季的 1,186 億日圓。在 ORIX USA 事業分部的 OCP（ORIX Capital Partners）方面，我們正分階段退出私募股權（PE）業務並推動資本回收。因此，我們在第四季認列商譽減損。這是主要因素。接下來請翻到第 4 頁。我將以三大類別—金融、營運與投資—來說明截至 2026 年 3 月止會計年度 ORIX 的稅前利益。

The upper table compares segment profits, pretax profits and net income for the last 2 fiscal years. As shown in the second row, pretax profits for the fiscal year ending March 2026 were JPY691.4 billion, an increase of JPY211 billion or 44% compared to the prior fiscal year. Next, please look at the graph at the lower left. Dark blue represents finance, light blue represents operation and the deep pink bar represents investments. The upper bar graph shows segment profits for the fiscal year ended March '25 and the lower bar graph, fiscal year ended March '26. All 3 categories saw profit growth, while the investments category posted profit growth even excluding JPY95 billion in gains from the Greenko sales and valuation gains.

上方表格比較最近兩個會計年度的分部利益、稅前利益與淨利。如第二列所示，截至 2026 年 3 月止會計年度的稅前利益為 6,914 億日圓，較前一年度增加 2,110 億日圓，增幅 44%。接著請看左下方圖表。深藍代表金融、淺藍代表營運、深粉紅色長條代表投資。上方長條圖為截至 2025 年 3 月止會計年度的分部利益，下方長條圖為截至 2026 年 3 月止會計年度。三大類別皆呈現獲利成長；且即使排除 Greenko 出售與評價利益 950 億日圓，投資類別仍呈現獲利成長。

In the finance category, investment income rose sharply in Insurance segment and Corporate Financial Services achieved growth in fee income. The result -- this resulted in an increase of JPY12.9 billion or 7% year-over-year. In operation, while some businesses have recently have been affected by geopolitical risks, inbound-related businesses such as hotels ins and airport concessions as well as Rentec automobiles and ships performed strongly in the fiscal year ended March 26. In addition, the sales of some ORIX stake in Canara Robeco following the firm's IPO and gains from the sale of Zeeklite contributed to growth, resulting in an increase of -- sorry, JPY37 billion or 18% compared to the previous fiscal year. In the investment category, ORIX saw a significant increase in segment profits of JPY138.1 billion or 82% compared to the previous fiscal year.

在金融類別中，保險事業分部的投資收益大幅上升，企業金融服務的手續費收入亦實現成長。因此，較去年同期增加 129 億日圓，年增 7%。在營運方面，雖然部分事業近期受到地緣政治風險影響，但與入境需求相關的事業（如飯店與機場特許經營），以及 Rentec、汽車與船舶等在截至 2026 年 3 月止會計年度表現強勁。此外，Canara Robeco 上市後我們出售部分 ORIX 持股，以及出售 Zeeklite 的收益亦帶動成長，使得較前一年度增加—抱歉—370 億日圓，增幅 18%。在投資類別中，ORIX 的分部利益較前一年度大幅增加 1,381 億日圓，增幅 82%。

This was driven primarily gains from the sale of valuation gains of Greenko as well as large gains from real estate and earnings of -- from PE investments, including Toshiba. Breakdown of each of the 10 segments are provided on Pages 40 and 41 for your reference later.

主要驅動因素為出售 Greenko 的收益與評價利益，以及來自不動產的大額收益，並包含東芝在內的 PE 投資收益。各 10 個分部的明細將列於第 40 與 41 頁，供各位稍後參考。

Please turn to Page 5. The bar chart on the left shows results for ROE, segment profits and allocated capital for each of the three categories for the fiscal year ended March 2026 as well as the changes from the prior fiscal year. The dark blue bubble, the finance category has allocated capital of JPY1.7 trillion with ROE holding steadily at the same level of 8.2% from the prior year. Light blue bubble operation has allocated capital of JPY1.4 trillion with ROE rising from 13.5% of the prior fiscal year to 13.9%. Dark Pink bubble investment has allocated capital of JPY1.6 trillion with ROE significantly improving from 7.4% to 13.6% due to realized gains from the sales of Greenko stake and hotel sales.

請翻到第5頁。左側的長條圖顯示截至2026年3月止會計年度三大類別各自的ROE、分部利益與分配資本，以及相較前一會計年度的變動。深藍色氣泡的金融類別分配資本為1.7兆日圓，ROE維持在與前一年相同的8.2%。淺藍色氣泡的營運類別分配資本為1.4兆日圓，ROE由前一會計年度的13.5%上升至13.9%。深粉紅色氣泡的投資類別分配資本為1.6兆日圓，因出售Greenko持股及飯店出售所帶來的已實現收益，ROE由7.4%大幅改善至13.6%。

On Page 6, we show historical trends of ROE and ROA of each of the 3 categories. In the operation category, profitability improvement has outpaced asset expansion with ROA improvement an additional 1.0 percentage-points over the past 5 years. In the investment category, ROE and ROA increased by 6.2 percentage-points and 3.6 percentage-points, respectively, compared to the prior fiscal year. We continue to create value and rotate assets while enhancing efficiency, as mentioned before.

在第6頁，我們展示三大類別各自ROE與ROA的歷史趨勢。在營運類別中，獲利能力的改善速度超過資產擴張，過去5年ROA額外改善了1.0個百分點。在投資類別中，ROE與ROA相較前一會計年度分別上升6.2個百分點與3.6個百分點。如先前所述，我們將持續在提升效率的同時創造價值並進行資產輪動。

Next, please proceed to Page 7. For the fiscal year ending March 27, we target net income of JPY530 billion, an increase of JPY82.7 billion from the prior year. And the target of ROE is 11.7% ORIX Group specific initiatives will be explained by our CEO, Takahashi, later on.

接著，請翻到第7頁。截至2027年3月止會計年度，我們目標淨利為5,300億日圓，較前一年增加827億日圓。ROE目標為11.7%。ORIX集團的具體措施稍後將由我們的CEO高橋進一步說明。

But we aim to increase profit and also improve ROE by continuing to optimize our portfolio. Regarding shareholder returns, I will touch on this again after presenting breakdown of our earnings guidance.

不過，我們的目標是在持續優化投資組合的同時，提高獲利並改善ROE。關於股東回饋，我會在說明我們獲利預測的拆解後再度提及。

Please turn to Page 8. I will explain the pretax profit guidance for the fiscal year ending March 2027 for each of the 3 categories. First, please look at the wrapper table. As shown in the second row, expected pretax profit for the fiscal year ending March '27 will be JPY760 billion, an increase of JPY68.6 billion or 10% year-over-year. Please look at the lower left graph. Overall, we expect the finance and operation categories to achieve profit growth, but the investments will see a decline. However, excluding the JPY95 billion in gains from the sales of Greenko realized in FY26 March, Investment segment profits are also expected to increase.

請翻到第8頁。我將說明截至2027年3月止會計年度三大類別各自的稅前利益預測。首先，請看彙總表。如第二列所示，截至2027年3月止會計年度的預期稅前利益為7,600億日圓，年增686億日圓或10%。請看左下方的圖表。整體而言，我們預期金融與營運類別將實現獲利成長，但投資類別將出現下滑。然而，若排除在截至2026年3月止會計年度已實現的出售Greenko所帶來的950億日圓收益，投資分部利益亦預期將增加。

Next, I would like to explain the trend for each categories. Finance. As announced in April, we have concluded share transfer agreement with (inaudible) Bank, a consolidated subsidiary of Daiwa Securities Group for all shares of ORIX Bank. We plan to record a gain on sales from the transaction of approximately JPY124.2 billion at the pretax level for fiscal year ending March 27. (Operator Instructions) from ORIX USA is expected to contribute as well. As a result, we expect finance category segment profit of JPY308.3 billion, an increase of JPY119.1 billion or -- sorry, 63% compared to the prior year. Within operation, we expect the inbound-related business to see lower profits due to the impact of geopolitical tensions.

接下來，我想說明各類別的趨勢。金融。如4月所公告，我們已與（聽不清）銀行（大和證券集團之合併子公司）就ORIX銀行全部股份簽署股份轉讓協議。我們計畫在截至2027年3月止會計年度於稅前層級認列約1,242億日圓的出售收益。（操作員指示）ORIX USA預期也將有所貢獻。因此，我們預期金融類別分部利益為3,083億日圓，較前一年增加1,191億日圓——抱歉——年增63%。在營運方面，受地緣政治緊張局勢影響，我們預期入境相關業務的獲利將下滑。

Despite this, we expect solid growth in aircraft leasing and USased Hilco Global. And we are guiding operations category segment profit of JPY240.7 billion, an increase of JPY3.6 billion or 2% compared to the fiscal year ending March '26. Finally, investment category, in addition to the sale of our domestic PE investment Sugiko, which was announced in March, we are proceeding with exits from multiple PE deals in the US. We also expect profit contributions from Toshiba, which is performing well. As a result, our guidance for the segment profit is JPY290 billion.

儘管如此，我們仍預期飛機租賃以及美國的Hilco Global將維持穩健成長。我們對營運類別的分部利益指引為2,407億日圓，較截至2026年3月止會計年度增加36億日圓或2%。最後是投資類別，除3月已公告出售我們在國內的PE投資Sugiko之外，我們也正推進在美國多筆PE投資案的退出。我們亦預期東芝（表現良好）將帶來獲利貢獻。因此，我們的分部利益指引為2,900億日圓。

Next, please turn to Page 9. Last point that I would like to explain is about the shareholder returns. For the fiscal 26 March, the full year dividend per share was a record high of JPY156.1, up 30% year-on-year. Additionally, we fully executed the entire JPY150 billion buyback program and canceled all shares exceeding 2% of the total shares outstanding. For the fiscal 27 March, we will maintain the dividend payout ratio of 39%. Thus, the full year dividend per share will be JPY187.36 based on the projected net income of JPY530 billion. We have set the share buyback program of JPY250 billion, up JPY100 billion year-on-year. This was decided after considering cash inflows and capital release resulting from the sale of ORIX Bank as well as the future profit levels, ROE and financial soundness. The projected total return ratio, as you can see here, is 85.9%. That concludes my presentation. I would hand it back to Mr. Takahashi, CEO -- Group CEO

接著，請翻到第9頁。我最後要說明的是股東回饋。截至2026年3月止會計年度，全年每股股利創新高，為156.1日圓，年增30%。此外，我們已全數執行1,500億日圓的庫藏股回購計畫，並註銷超過已發行股份總數2%的所有股份。截至2027年3月止會計年度，我們將維持39%的股利支付率。因此，基於預估淨利5,300億日圓，全年每股股利將為187.36日圓。我們已設定2,500億日圓的庫藏股回購計畫，較去年增加1,000億日圓。此決定係在考量出售ORIX銀行所帶來的現金流入與資本釋放，以及未來獲利水準、ROE與財務健全性後作出。如各位所見，預估總股東回饋率為85.9%。我的簡報到此結束。接下來交回給高橋先生，CEO——集團CEO。

Thank you, Mr. Yamada. First, I'd like to summarize the previous fiscal year from the perspective of the 3 key initiatives for realizing our long-term vision we explained at last year's financial results briefing. The first strategic initiative is portfolio optimization. We have been reviewing our portfolio considering the growth potential, capital efficiency and impact on the credit ratings of each business. Major examples are shown on the slide, the sale of our Greenko stake and new investment in AM Green convertible bonds as well as the sale of the ORIX Asset Management and loan services. As mentioned, last month, we announced that the we would sell ORIX Bank during the fiscal March '27. The second initiative is sophisticated risk management.

謝謝你，山田先生。首先，我想從去年財報說明會中所提到、用以實現我們長期願景的三項關鍵倡議之角度，總結上一會計年度。第一項策略性倡議是投資組合最佳化。我們已在考量各事業的成長潛力、資本效率以及對信用評等影響的前提下，持續檢視投資組合。投影片上列出主要例子，包括出售我們的Greenko持股、對AM Green可轉換公司債的新投資，以及出售ORIX資產管理與貸款服務業務。如前所述，上個月我們宣布將在截至2027年3月止會計年度內出售ORIX銀行。第二項倡議是風險管理的高度精緻化。

We have strengthened our management's decision-making platform by both integrating and visualizing risk information. And through this, we have established a system that enables quantitative risk assessment and agile reflection of this assessment in our management decisions. Starting this year, we have integrated the individual finance deal screening department with the portfolio management department, establishing a system that enables end-to-end risk management. The third initiative is new business creation. Construction on the Osaka IR project commenced in April last year and is progressing smoothly. In October, there was an application for the MICE, and it's going very smoothly. Through the acquisition of Hilco Global in the United States, we have entered the professional advisory services businesses, including asset valuation primarily in the United States. We will also build an asset-backed financing platform going forward.

我們透過整合並可視化風險資訊，強化了管理層的決策平台。並藉此建立一套可進行量化風險評估，且能將該評估敏捷地反映於管理決策中的機制。自今年起，我們已將個別金融交易審查部門與投資組合管理部門整合，建立可端到端進行風險管理的體系。第三項倡議是新事業創造。大阪IR專案於去年4月動工，目前進展順利。10月已提出MICE申請，進展也非常順利。透過在美國收購Hilco Global，我們已進入專業顧問服務業務，包括以美國為主的資產估值等服務。未來我們也將建置資產擔保融資平台。

Also Using the Hilco Global, we will be also building the asset-backed financing platform. Also, our investment in I-NET and conversion of Nozoe Industry into the subsidiary are part of our efforts to create new businesses in strategic investment areas. Through those priority initiatives, we steadily improved ROE, and I am pleased to report that both net income and market cap reached record high levels for the first fiscal March '26. Please turn to next page. For the fiscal 27 March, we will continue to promote the 3 key initiatives aimed at realizing our long-term vision, including portfolio optimization, sophisticated risk management and new business creation.

此外，運用Hilco Global，我們也將建置資產擔保融資平台。另外，我們對I-NET的投資，以及將Nozoe Industry轉為子公司，亦是我們在策略性投資領域創造新事業努力的一環。透過這些優先倡議，我們穩步提升ROE，並很高興報告在截至2026年3月止會計年度，淨利與市值雙雙創下歷史新高。請翻到下一頁。截至2027年3月止會計年度，我們將持續推動三項關鍵倡議以實現長期願景，包括投資組合最佳化、風險管理的高度精緻化以及新事業創造。

In addition, under the new management structure, we would add a new key initiative that is the business model transformation. We will achieve this by deepening and evolving our 2 core business models as set forth in our growth strategy, alternative investment and operations and business solutions. Let me explain the specific details later on. Now please proceed to the next page. This is ORIX Group's new management structure. In January this year, I myself, Takahashi, assumed the position of CEO, and reorganized our firm into 5 business units and 5 corporate units. Following this, we introduced the CXO system in April.

此外，在新的管理架構下，我們將新增一項關鍵舉措，即商業模式轉型。我們將透過深化並進一步演進我們成長策略中所提出的兩大核心商業模式來達成，也就是另類投資與營運，以及營運與商業解決方案。具體細節我稍後再說明。現在請翻到下一頁。這是 ORIX 集團新的管理架構。今年 1 月，我本人高橋就任 CEO，並將公司重組為 5 個事業單位與 5 個公司單位。隨後，我們於 4 月導入 CXO 制度。

This organizational reform aims to optimize the allocation of management resources under the CEO and create new businesses through the Inter-Unit collaboration. By introducing CXO system, we are expanding the delegation of authority to individual BU to help achieve both faster and more accountable decision-making by business division COOs. CFO, CRO will be responsible for the maintenance of the strong financial discipline and risk management, respectively. Each CXO will not only be responsible for their respective areas, but will also serve a role as top management overseeing the entire group alongside the CEO.

此次組織改革旨在由 CEO 統籌下最佳化管理資源配置，並透過跨事業單位（Inter-Unit）協作創造新事業。藉由導入 CXO 制度，我們擴大對各事業單位（BU）的授權，以協助各事業部門 COO 更快速且更具責任制地做出決策。CFO 與 CRO 將分別負責維持嚴謹的財務紀律與風險管理。各 CXO 不僅負責其各自領域，也將與 CEO 一同以最高管理層身分監督整個集團。

Today's attendees, Mr. Matsuzaki, Deputy President; and Mr. Suzuki, the Senior Managing Executive Officer. There will be the COO of Japan and APAC as well as COO of USA, Europe and COO of Infrastructure business for Mr. Irie. And today, Mr. Otsuka is not present. He's the Managing Executive Officer, and he will be the in charge of the risk management unit and group CRO. In Japan and APAC business unit, we have a wide range of financial businesses from debt to equity in APAC, including Japan, going forward, we will capture the growth opportunities by expanding the diverse businesses we have cultivated domestically into APAC. USA and Europe is the core of our overseas asset management business in addition to the public assets centered on Robeco and private credit at ORIX USA, we will expand asset classes into other alternative assets and pursue AUM growth through strengthening sales collaboration.

今天出席者包括副社長松崎先生，以及專務執行役員鈴木先生。入江先生將擔任日本與亞太的 COO，以及美國、歐洲的 COO，並兼任基礎設施事業的 COO。另外，大塚先生今天未出席。他是常務執行役員，將負責風險管理單位並擔任集團 CRO。在日本與亞太事業單位方面，我們在包含日本在內的亞太地區，涵蓋從債務到股權的廣泛金融業務；未來我們將把在日本國內培育的多元業務拓展至亞太，以掌握成長機會。美國與歐洲是我們海外資產管理業務的核心；除以 Robeco 為中心的公募資產，以及 ORIX USA 的私募信貸外，我們也將把資產類別擴展至其他另類資產，並透過強化銷售協作來追求 AUM 成長。

Infrastructure business unit will refine its expertise in the development management and operation of real assets such as real estate, energy and aircraft and ships while promoting the shift to asset management to expand the business scale through asset rotation. With this new structure, we believe we have established a management system that is more resilient to environmental changes and capable of making sound decision on both offensive and defensive fronts. Please turn to the next page. Now let me elaborate on our business model transformation, which has been introduced as a new key initiative. Until now, our alternative investments and operations have primarily been in our alternative assets on the balance sheet, where we can leverage our hands-on asset operation and management capabilities.

基礎設施事業單位將精進在不動產、能源、飛機與船舶等實體資產的開發管理與營運專業，同時推動向資產管理轉型，透過資產輪動擴大事業規模。在此新架構下，我們相信已建立一套更能因應環境變化、並能在攻守兩端做出健全決策的管理體制。請翻到下一頁。接下來我將進一步說明我們作為新增關鍵舉措所提出的商業模式轉型。迄今為止，我們的另類投資與營運主要集中在資產負債表上的另類資產，並可運用我們親自參與的資產營運與管理能力。

Going forward, we will continue to build up assets such as real estate and renewable energy development while efficiently utilizing our balance sheet. We would accelerate investment in assets suitable for shifting to an asset management -- asset manager type model and connect this to medium- to long-term AUM expansion. Also, our business solutions model will continue to value touch points with our customers, and we will expand the services originating in client needs. Through this, we aim to grow our asset under management and fee income. Please refer to the slide as examples of the initiatives of each business unit. Please go to the next page. Next, I would like to discuss our financial and risk management strategies.

未來，我們將在有效運用資產負債表的同時，持續累積不動產與再生能源開發等資產。我們將加速投資於適合轉向資產管理（資產管理人型）模式的資產，並將其連結至中長期的 AUM 擴張。此外，我們的商業解決方案模式將持續重視與客戶的接觸點，並擴大源自客戶需求的服務。透過上述作法，我們目標是提升管理資產規模並增加手續費收入。請參考投影片，作為各事業單位舉措的示例。請翻到下一頁。接下來，我想談談我們的財務與風險管理策略。

To steadily execute our growth strategy going forward, we will continue to strengthen financial discipline and risk management. The environment surrounding us is changing daily, including the situation in the Middle East, the resulting energy crisis and highly volatile financial markets and uncertainty has become the norm. As I said earlier, in this climate, it is essential to thoroughly enforce financial discipline and risk management and to enhance resilience. We would not only respond to the changes, but also grow amid the changes. By targetly implementing management focused on the capital efficiency and optimizing capital allocation across the group, we will concentrate management resources in areas where we have a strong competitive edge.

為了在未來穩健執行成長策略，我們將持續強化財務紀律與風險管理。我們所處的環境每日都在變化，包括中東局勢、由此引發的能源危機、以及高度波動的金融市場，不確定性已成為常態。如我先前所述，在此情勢下，徹底落實財務紀律與風險管理並提升韌性至關重要。我們不僅要因應變化，也要在變化之中成長。透過有針對性地推動以資本效率為核心的經營，並在集團內最佳化資本配置，我們將把管理資源集中於具備強大競爭優勢的領域。

We will pursue maximum profitability and sustainable enhancement of the corporate value under any circumstances. Please go to the next page. Finally, let me summarize the core messages today. The previous fiscal year was one of the steady progress towards realizing our long-term vision, as I said at the outset. Additionally, we recently announced the sale of ORIX Bank. Regarding portfolio optimization, we will continue to pursue this strategy without having any secret areas. Under the new management structure, we will continue to balance growth investments and shareholder returns while aiming to maximize corporate value over the medium to long term.

無論在任何情況下，我們都將追求最大獲利能力與企業價值的永續提升。請翻到下一頁。最後，讓我總結今天的核心訊息。如我在開頭所述，上一會計年度是朝向實現我們長期願景穩步前進的一年。此外，我們近期也宣布出售 ORIX 銀行。在投資組合最佳化方面，我們將持續推進此策略，不會保留任何「禁區」。在新的管理架構下，我們將持續在成長投資與股東回饋之間取得平衡，同時以中長期最大化企業價值為目標。

With a focus on improving capital efficiency and profit growth, we will steadily execute each initiative. Finally, on the July 2 of this year, we plan to hold our first ever Investor Day in London. We continue to value dialogue with our stakeholders and apply it to our management. We appreciate your continued support. Thank you very much for your attention.

我們將聚焦於提升資本效率與利潤成長，穩健推進各項舉措。最後，我們計畫於今年 7 月 2 日在倫敦舉辦首次 Investor Day。我們將持續重視與利害關係人的對話，並將其反映於經營管理。敬請持續支持。非常感謝各位的聆聽。

(Event Instructions)

（活動說明）

My name is Sukawa, Nikkei Newspaper. I have two questions. Question one, ORIX Bank sales was decided. What are the reasons? What is the background? Can you please remind us of that? -- and the sales of the bank. And I know that there is a lot of cash coming in from that and other sales. So what is the purpose of this cash? How do you intend to spend this cash in the future? Do you have any plans already?

我是《日經新聞》的須川。我有兩個問題。第一個問題，已決定出售 ORIX 銀行。原因是什麼？背景是什麼？能否請您再提醒我們一次——關於出售該銀行。我也知道，從這筆交易以及其他出售案會有大量現金流入。那麼這些現金的用途是什麼？未來您打算如何運用這些現金？目前是否已經有任何計畫？

Thank you very much. I would like to respond to this question. The reason to sell the ORIX Bank, there were multiple reasons behind this. The biggest being, well, Daiwa Next Bank. and also we're here at the venue, but there's a very good affinity with ORIX Bank and also Daiwa Security Group has been really appreciating the ORIX Bank highly. Business-wise, ORIX Bank doesn't really have ordinary deposits. It's basically CDs, but the interest rate is favorable and the bank is also providing real estate collateral loans. And actually, the deposit to loan ratio is higher than 10% slightly, which is very unique. But the deposit stickiness is a little bit weaker. And therefore, in order to grow the business, the interest rate for the term deposit will have to be higher to be more attractive. And we have to basically do the investment with loans. But of course, there is competitiveness as well.

非常感謝。我來回答這個問題。出售 ORIX 銀行的原因有好幾項。其中最大的一點是大和ネクスト銀行（Daiwa Next Bank）。雖然我們現在就在會場，但 ORIX 銀行與其之間具有非常高的契合度，而且大和證券集團也一直高度評價 ORIX 銀行。就業務而言，ORIX 銀行其實沒有一般活期存款。基本上以定期存單（CD）為主，但利率條件具吸引力，且該行也提供不動產擔保貸款。實際上，其存款對放款比率略高於 10%，這非常獨特。但存款黏著度稍弱。因此，若要擴大業務，定期存款利率必須提高以更具吸引力。而我們基本上必須透過放款來進行投資。當然，這當中也存在競爭力的問題。

So it's very difficult to get the margin these days. And as far as I know, the Bank is going the opposite way. In other words, they have a relationship with the securities brokers business, and it's relatively easy for them to collect the deposits. But once they get the deposits, they had challenges in terms of how to invest or manage that money. So this combination, I understand that the 2 entities will be integrated. But as a new bank, we believe that they can aim for further growth, bigger growth, and that is the reason why we decided to sell the bank. With regard to your next question, -- we also do divestments and also investments.

所以，這些日子要取得利差（margin）非常困難。而據我所知，該銀行正朝相反方向走。換言之，他們與證券經紀業務有關聯，因此相對容易吸收存款。但一旦吸收了存款，在如何投資或管理這些資金方面就面臨挑戰。因此，基於這樣的組合，我理解這兩個實體將會整合。但作為一家新銀行，我們認為他們可以追求進一步成長、更大的成長，這也是我們決定出售該銀行的原因。至於您下一個問題——我們也會進行資產剝離，同時也會進行投資。

When we gain on sale, we are not necessarily thinking about spending money for specific purpose. But we want to focus on where we are competitive when it comes to investments. And also, if you invest against the macro environment, it doesn't really work. So we need to really consider the macroeconomic environment and identify good areas for investment. To be more specific, according to the older segment, for example, PE investments within Japan is something that will still be actively investing into going forward. and real estate as well as aircraft. Those real assets, they have a strong resistance against inflation. This is what we believe and also operational capabilities of ORIX and our turnaround capacities would really help us to generate business value on our own. So investment into real assets is another area where we could allocate capital. I hope this answers your question.

當我們在出售上獲利時，我們不一定會考慮把資金用於特定目的。但在投資方面，我們希望聚焦於我們具競爭力的領域。此外，如果逆著總體環境去投資，實際上並不奏效。因此，我們需要確實考量總體經濟環境，並辨識良好的投資領域。更具體而言，依照既有的方向，例如日本國內的私募股權（PE）投資，未來仍會持續積極投入；以及不動產與飛機。這些實體資產對抗通膨具有很強的抵禦力。這是我們的看法；同時，ORIX 的營運能力與我們的企業重整（turnaround）能力，確實能幫助我們自行創造業務價值。因此，投資於實體資產也是我們可以配置資本的另一個領域。希望這回答了您的問題。

Any other questions? Please raise your hand.

還有其他問題嗎？請舉手。

[Nakahara] from [Yomiuri Shimbun]. Thank you for your presentations. Related question to the first question. I would like to ask two things. About the numbers on page 8, in the finance section, March 27th, the segment profit JPY300 billion. ORIX Bank sale is JPY124 billion upside. So JPY300 billion. Si in the finance segment, is this going to be the highest record? I'd like to clarify that. That's the first point. Nikkei's question, I think is the other side of her question. The benefits of a sale, you talked about that. At the same time, as a management decision in the finance segment, continue to hold ORIX Bank. I think that was one way of doing business. Could you talk about the balance? Could you explain that once again?

[讀賣新聞]的[Nakahara]。感謝各位的說明。我有一個與第一個問題相關的提問。我想問兩點。關於第8頁的數字，在金融部門，3月27日，分部利益為3,000億日圓。ORIX銀行出售帶來1,240億日圓的上行（upside）。因此是3,000億日圓。那麼在金融分部，這會是歷史最高紀錄嗎？我想釐清這點。這是第一點。日經的問題，我想是她問題的另一面。您談到了出售的好處。同時，作為金融分部的經營決策，繼續持有ORIX銀行我認為也是一種經營方式。能否談談兩者之間的權衡？可以再說明一次嗎？

Yes. To your first question about the financing and investment business, we did not have that category in the past 10 or 20 years. I don't have the precise data in my head. About the JPY300 billion segment profit, it is the record high profit in finance, I believe. That is a forecast. Why don't we maintain it, or why don't we keep it? One thing is that the ORIX Bank, compared to other banks in terms of ROA, relatively speaking, was at the higher level. But in the ORIX Group, ROA, relatively speaking, was lower. In finance sector, the ROA comparison, ORIX bank was relatively -- in the ORIX financial, finance sector was relatively low. Therefore, making significant improvement of the ROA based on the banking business is difficult.

好的。關於您第一個問題，融資與投資業務這個分類，在過去10年或20年我們並沒有。我腦中沒有精確數據。至於分部利益3,000億日圓，我認為這是金融領域的歷史新高。那是預測值。為什麼不維持、或為什麼不繼續持有？其中一點是，ORIX銀行與其他銀行相比，就ROA而言相對處於較高水準。但在ORIX集團內部，相對而言ROA較低。在金融領域的ROA比較中，ORIX銀行相對——在ORIX的金融、金融領域中相對偏低。因此，要以銀行業務為基礎大幅改善ROA是困難的。

In order to improve ROA, we need to increase the leverage. And naturally, it's a regulated business, and also there is a certain limitation to that. When you look at the overall business portfolio, we wanted to focus more on the ROA, ROE. Then the bank business for us is not a non-core business. That is the major background.

為了提升ROA，我們需要提高槓桿。而且這自然是受監管的業務，也存在一定限制。從整體業務組合來看，我們希望更聚焦於ROA、ROE。那麼對我們而言，銀行業務並非核心業務。這是主要背景。

Any other questions? If you have a question, please raise your hand. Yes, the person in the fifth row.

還有其他問題嗎？如果有問題，請舉手。是的，第五排那位。

The [Nikko SMBC]. My name is [Nawi]. I am an anchor. I have three questions. Mr. Takahashi, you said that domestic PE, real estate, and aircrafts and real assets are the areas that you see opportunities in. But in terms of macroeconomics, which areas are you more wary of? In other words, you talked about uncertainty becoming the norm. Where are you being more careful? And when the interest rate is hiked, what kind of impact will it have on your business? Well interest rate hikes so far, has it been positive for the management of ORIX Group? And if the rate hike accelerates or exceeds a certain threshold, do you need to be more wary of that? The third point is, total payout ratio was 80 some percent in last fiscal year. What is your basic policy for shareholder return? Can you please explain that once again?

[日興SMBC]。我叫[Nawi]。我是主播。我有三個問題。高橋先生，您提到日本國內PE、不動產、飛機以及實體資產是您看到機會的領域。但就總體經濟而言，哪些領域您更為警惕？換言之，您談到不確定性成為常態。您在哪些方面會更謹慎？另外，當利率上調時，會對你們的業務造成什麼影響？到目前為止的升息，對ORIX集團的經營是正面影響嗎？如果升息加速或超過某個門檻，是否需要更為警惕？第三點，上一財年的總派息率約為80%多。你們對股東回饋的基本方針是什麼？能否再說明一次？

With regard to the first question, are there any areas that we have cautions about? For domestic business, in Kansai we are operating 3 airports. For inbound related business, we have hotels and inns. We also operate those. And It's very unfortunate that since last autumn, relationship between Japan and China has weakened politically. And Kansai International Airport receives about the 30% of the flights from China. Out of that 30%, approximately two third have been reduced. The number of flights have been reduced. And there is a 3-month lag in terms of impact or performance. So for the prior fiscal year, we are only accounting for the number of Kansai Airport up to December last year. So the impact is minimal. If the flight reduction continues, the impact will be bigger going forward. There's also a positive factor. We are receiving a few visitors from China, but we are receiving more visitors from South Korea and Taiwan.

關於第一個問題，有沒有我們需要留意的領域？就國內業務而言，我們在關西營運3座機場。在入境（inbound）相關業務方面，我們有飯店與旅館。我們也在營運這些。很遺憾的是，自去年秋天以來，日本與中國的關係在政治上轉弱。而關西國際機場約有30%的航班來自中國。在這30%之中，約有三分之二已被削減。航班數量已經減少。而在影響或業績反映上大約有3個月的落後期。因此，上一財年我們只計入到去年12月為止的關西機場數據。所以影響很小。若航班削減持續，未來影響將會更大。也有正面因素。雖然來自中國的旅客較少，但來自南韓與台灣的旅客更多。

So it is not just a simple reduction of a two third of the 30%, like I said, but a certain amount of impact is expected, so we need to be careful. Similarly for hotels, we don't have many hotels that accept group tourists. And only about 10% of the visitors from China in terms of occupancy, it's fine, but in terms of room rate, maybe it was too high during some period. Generally, the numbers are softening, and therefore, revenue from the hotels can be impacted to some extent as well.

因此，並不是像我剛才說的那樣，單純把30%中的三分之二減掉而已，但預期仍會有一定程度的影響，所以我們需要謹慎。飯店方面也類似，我們並沒有太多接待團體旅客的飯店。以住房率來看，中國旅客僅約占10%，所以還好；但以房價（room rate）來看，某些期間可能偏高。整體而言，數據正在走弱，因此飯店收入也可能在一定程度上受到影響。

No with regard to overseas, in the USfundamental measures have been implemented. We believe that we have already entered the phase of recovery. Private credit, especially SaaS company exposure, impact is of concern for many. So if there is money coming in from the individuals, there are redemptions happening. In terms of a private equity exposure and SaaS related lending, that's approximately 7%. 7% of the total. For the industry, the average is about 20%. That means that the impact for us is very much limited.

關於海外方面，不，在美國已經實施了根本性的措施。我們認為我們已經進入復甦階段。私人信貸，特別是對SaaS公司的曝險，其影響是許多人關注的重點。因此，如果有個人資金流入，同時也會發生贖回。就私募股權曝險以及與SaaS相關的放款而言，約為7%，占總體的7%。就產業而言，平均約為20%。這表示對我們而言，影響非常有限。

Having said that, inflation and interest rate reduction, compared to expectation from one to two years ago, inflation pace and also the interest change pace is slowing down. So we have to pay close attention to how this will impact us in the future. Just one more thing. With regard to portfolio of Chinese business, we need to control the exposure generally. And there are some parts of portfolio that will have to be turned around.

話雖如此，通膨與利率下調，相較於一到兩年前的預期，通膨的速度以及利率變動的速度都在放緩。因此，我們必須密切關注這將如何在未來影響我們。再補充一點。關於中國業務的投資組合，我們需要整體上控制曝險。而投資組合中有些部分必須進行扭轉。

So we will strengthen our structure and continue to provide monitoring over that business. So those are the three points that we believe that we need to be careful about. Now, interest rate sensitivity. Interest rate is being hiked, and if it is slow, mostly in Japan, of course, the funding cost will increase. But we can respond to that, and we believe that it will have an overall positive impact. 1% interest rate change sensitivity is about 1% by segment or at the segment level so it's limited. However, as you asked, if there is a sudden interest hike, a very fast interest hike, it is possible that we will fail to catch up or there will be a time lag which will result in potential impact.

因此，我們將強化架構，並持續對該業務進行監控。以上就是我們認為需要留意的三點。接著是利率敏感度。利率正在上調，即使上調速度緩慢，主要是在日本，當然資金成本會上升。但我們可以因應，我們認為整體影響將是正面的。利率變動1%的敏感度，按事業別或在事業別層級約為1%，因此影響有限。然而，如您所問，若出現突然升息、非常快速的升息，我們可能來不及跟上，或會有時間落差，從而造成潛在影響。

At the current pace, as long as the interest hike is happening slowly, we believe that the impact will be positive for us. And the third question was about dividend, I believe. Yes, the return policy. As I mentioned in my presentation, investment for future growth and the maintenance of financial soundness and return to shareholders, we need to strike the right balance between the three elements. We continue to sustain this policy. Over the last 3 fiscal years or so, we had some gains from temporary sales or divestiture, and the profit was really going up, and dividend per share has been going up as well quite a lot. So DPS growth on a continuous basis is something that we're aiming for, and also at the same time, we'll be focusing on the balance of the 3 elements. And this is how we decide our dividend policy. I hope that answers your question.

以目前的速度來看，只要升息是緩慢進行，我們認為對我們的影響將是正面的。第三個問題我想是關於股利。是的，股東回饋政策。如我在簡報中提到，為了未來成長的投資、維持財務健全性，以及回饋股東，我們需要在這三個要素之間取得適當平衡。我們將持續維持此一政策。在過去約3個會計年度，我們因臨時性出售或資產剝離而有一些收益，獲利確實上升，每股股利也大幅提高。因此，我們的目標是持續推動DPS成長，同時也會著重三要素之間的平衡。這就是我們決定股利政策的方式。希望這回答了您的問題。

Yes, another person in the fourth row.

是的，第四排還有一位。

[Kawasaki] from [Jiji Press]. Two questions, please. About the ORIX Bank, the gain on sales of it. So JPY370 billion is the price. And for this fiscal year, there is JPY124.2 billion. It's a part of that gain, and the remaining will be reflected in the next fiscal year and onwards. Could you explain that? That's my first question. The second is that about the Middle East situation. Due to the situation, different industries are being affected. Maybe you have not seen the negative impact for yourself. So the disruption in Middle East What could be the negative impacts or positive impacts, if there are any? If you can summarize that?

[Kawasaki]，來自[時事通信社]。我有兩個問題。關於ORIX銀行，出售所產生的出售利益。價格是3,700億日圓。而在本會計年度，計入1,242億日圓。這是其中一部分的利益，其餘將在下一會計年度及之後反映。可以請您說明一下嗎？這是第一個問題。第二個是關於中東局勢。由於該局勢，不同產業受到影響。也許你們自身尚未看到負面影響。那麼，中東的動盪可能帶來哪些負面或正面影響（如果有的話）？能否請您做個整理？

Yes. I'd like to respond. About the bank, I would like to refrain from talking about the details, but roughly speaking, the financial net asset of the bank is about JPY250 billion. So JPY370 billion, the sale, the price of sale, the difference between the two will be our gains. So for this fiscal year, we plan to close this. If unless there is a postponement of the closing, it is not likely that we would book the profit from this transaction across at a different fiscal year. So that's my answer to your first question. As about the Middle East, you're right. The subsidiaries or affiliates that we have in Saudi Arabia, we have a leasing company called Yanal.

好的。我來回答。關於銀行部分，我想避免談太多細節，但概略而言，該銀行的財務淨資產約為2,500億日圓。因此，3,700億日圓的出售價格，與兩者之間的差額將成為我們的收益。我們計畫在本會計年度完成交割。除非交割延後，否則不太可能把這筆交易的利益分攤到不同會計年度入帳。以上是對第一個問題的回答。至於中東，您說得沒錯。我們在沙烏地阿拉伯的子公司或關聯企業，有一家名為Yanal的租賃公司。

In Pakistan, the OLP is a leasing and financing company. But in terms of exposure, those are the two companies. It's about JPY15 billion. Exposure is limited. The potential impact on the businesses, aircraft business, we have a high credit level, the company. So far, no major impact is forecasted due to the Middle Eastern situation. But the jet fuel, if this current Middle Eastern situation continues, there could be a short shortage of the jet fuel. And then including LCC, it's possible that they will reduce the number of the flights.

在巴基斯坦，OLP是一家租賃與融資公司。就曝險而言，主要就是這兩家公司。約為150億日圓。曝險有限。至於對業務的潛在影響，在飛機業務方面，我們的信用水準很高。截至目前，因中東局勢而預測到的重大影響並不多。但若目前中東局勢持續，航空燃油可能出現短缺。屆時包含LCC在內，可能會減少航班數。

And then the airline performance will deteriorate. And Spirit is another story that used Chapter 11, and it's possible that there could be some airlines whose credit would deteriorate. So we are not too optimistic. Si I'd like to look at the credit situation and aircraft situation. We are watching that closely. Another thing is, especially in Asia, Southeast Asia, as you all know, their energy reserve is at low level as countries. If it lingers in a different senses, the Southeast Asian macro economy could be impacted. If that happens, then the credit quality goes down. So direct impact, as you correctly said, is limited for us. But if it lingers further, then there could be some indirect impact.

接著航空公司業績會惡化。另外，Spirit是另一個已申請Chapter 11的案例，也可能會有一些航空公司的信用狀況惡化。因此我們不會過度樂觀。我想持續觀察信用狀況與飛機市場狀況。我們正在密切關注。還有一點，特別是在亞洲、東南亞，如各位所知，這些國家的能源儲備水準偏低。如果情勢以不同形式持續延燒，東南亞的總體經濟可能受到影響。若發生那種情況，信用品質就會下降。因此，直接影響如您所說對我們有限。但若持續更久，可能會出現一些間接影響。

In that sense, we have to enhance the risk management, as I said. We'd like to focus on that, and we would like to respond to the situation. Thank you. That's all the questions. The answers, sorry.

在這個意義上，如我所說，我們必須強化風險管理。我們希望聚焦於此，並因應情勢。謝謝。以上是所有問題。抱歉，是所有回答。

Any other questions? Second row on the right-hand side.

還有其他問題嗎？右側第二排。

Thank you. [Nikkei Business]. My name is [Umekuni]. I have two questions. Insurance business positioning within your portfolio. You talked about ROE and also business model transformation. Against that background, how do you position your insurance business? That's my first question. My second question is about the three airports in the Kansai area. What is the significance of this business, and what is your outlook of this business going forward?

謝謝。[日經Business]。我叫[Umekuni]。我有兩個問題。保險業務在你們投資組合中的定位。您談到了ROE以及商業模式轉型。在這樣的背景下，您如何定位你們的保險業務？這是第一個問題。第二個問題是關於關西地區的三座機場。這項業務的意義是什麼？以及未來對這項業務的展望如何？

With regard to your first question about our insurance business, insurance, as you may know, is balance sheet heavy and also a regulated business. Therefore, we need to build a certain amount of capital. It is also a capital-intensive business, and we need to use the balance sheet in order to grow the business. And therefore, if you just apply the ROE perspective, then insurance business is a little bit different from the rest of the portfolio. However, there are 2 things we need to consider. One is if you look at other alternative asset managers, they're doing something similar. Through insurance policies, you gain liabilities. Non-insurance business usually cannot really finance this kind of long-term debt. You can do that through insurance.

關於您第一個有關我們保險業務的問題，保險如您所知，是資產負債表占用較重、同時也是受監管的業務。因此，我們需要建立一定規模的資本。這也是一項資本密集型業務，我們需要運用資產負債表來推動業務成長。因此，如果僅從ROE的角度來看，保險業務與投資組合中的其他業務會有些不同。不過，有兩點需要考量。第一，如果您看看其他另類資產管理公司，他們也在做類似的事情。透過保險保單，您會取得負債。非保險業務通常無法真正為這類長期負債提供融資。但可以透過保險來做到。

This is something that we can really use for other assets within the group, including the utilization of the reinsurance. So if we can allocate it like that in terms of financing, we believe that there is good synergy. That's one point. And the second point is that when we obtain a debt and also sell insurance, well, the third category insurance targeted at individuals were advertised on TV, and we were also focusing on online sales as well. Now we live in a world where we have interest rates. So Life insurance, death coverage, and also wealthy individual insurance. We have started this several years ago. Now, corporate financial services in -- of ORIX is one of the best sales agents in Japan. We believe that there's synergy in terms of obtaining insurance policies as well.

這是我們可以在集團內用於其他資產的工具之一，包括再保險的運用。因此，若能以融資的角度如此配置，我們相信會有良好的協同效益。這是第一點。第二點是，當我們取得負債並同時銷售保險時，第三類以個人為對象的保險會在電視上投放廣告，我們也同時著重於線上銷售。現在我們所處的世界是有利率的環境。因此包含壽險、死亡保障，以及面向高資產個人的保險。我們在幾年前就已開始推動。目前，ORIX的企業金融服務部門是日本最優秀的銷售代理之一。我們相信在取得保險保單方面也存在協同效益。

There is actually a third point. If you just look at ROE, it's only about 7%, so you may consider that we should be selling this business. However, as you could see from the performance of the prior year, for pre-tax segment profit, we are generating more than JPY100 billion from this segment. Considering the nature of the insurance business, this kind of a revenue or profit is very stable. So we do not just apply the ROE perspective. This is similar to the bank business. Well, in other words, we don't really consider to sell insurance, like we did with the bank, just looking at ROE.

其實還有第三點。如果只看ROE，大約只有7%，您可能會認為我們應該出售這項業務。然而，從前一年度的表現您也可以看到，就稅前分部利益而言，我們從該分部創造了超過1,000億日圓。考量保險業務的特性，這類收入或利潤非常穩定。因此我們不會只套用ROE的觀點。這與銀行業務類似。換言之，我們不會像處理銀行那樣，只因為看ROE就考慮出售保險業務。

We have to look at the debt structure of ORIX Group as a whole, and also asset management structure as well, and how to utilize insurance business within that framework. That's what we consider. Now, with regard to the 3 airports, there are certain factors that are in our control and out of control. Relationship between Japan and China was already explained earlier. We don't just sit by and watch the situation change or improve.

我們必須從ORIX集團整體來看負債結構，以及資產管理結構，並思考如何在該框架下運用保險業務。這是我們所考量的。至於3座機場，有些因素在我們可控範圍內，也有些不在可控範圍內。日中關係先前已經說明過。我們不會只是坐視情勢變化或改善。

As I said before, we are getting more visitors from South Korea and Taiwan, and Indonesia, Thailand, and other southeastern airlines. We are approaching them. Our sales team is approaching them because this is a great opportunity. Traditionally, we were relying on a single market for 30% of our sales or revenue, but this is a great opportunity to change that structure to reduce the dependency. And now the risks have materialized. We want to make sure that the lesson is learned and same problem will not be repeated so that we can operate this business over the long term. That's all. Thank you.

如我先前所說，我們正迎來更多來自南韓、台灣，以及印尼、泰國等東南亞航空公司的旅客。我們正在接觸他們。我們的銷售團隊正在接觸他們，因為這是很好的機會。過去我們對單一市場的依賴度高達營收或收入的30%，但這是改變結構、降低依賴度的好機會。而且現在風險已經顯性化。我們希望確保汲取教訓、同樣的問題不再重演，讓我們能長期經營這項業務。以上。謝謝。

The person in the sixth row.

第六排的那位。

Thank you. [Kawase] from The [Nikkei]. About China, I'd like to ask a question. Earlier, Mr. Takahashi, in your presentation, you said that the portfolio in China and exposure needs to be controlled, and maybe turnaround is necessary in part. And in the distribution, it is the materials about the Greater China, you are saying that you will be controlling your business. so more specifically, the areas that you were not investing or you will withdraw, where are they and how do you control the exposure? When you say you'll be more restrictive, it means that you won't be not really reducing it totally, but what are the areas that you are referring to? The APAC business, Asia Pacific, I mean. So in APAC, how do you position China? The excluding China, you want to enhance the APAC. Is that the framework of APAC excluding China? Could you explain that?

謝謝。我是《日經》的[Kawase]。關於中國，我想提一個問題。先前高橋先生在簡報中提到，中國的投資組合與曝險需要控管，部分可能也需要進行轉型。而在發放的資料中，關於大中華區的部分，您表示將控管業務。那麼更具體而言，您不再投資或將撤出的領域是哪些？以及您如何控管曝險？當您說會更為嚴格時，意思並不是完全降低到零，但您所指的是哪些領域？也就是APAC業務，亞太地區的部分。那麼在APAC中，您如何定位中國？您希望強化不含中國的APAC。這是否就是「排除中國的APAC」這樣的框架？能否請您說明？

Well, about China, following USit's the second-largest market. So we are not going to withdraw it completely from China. That's not something that we expect. But at the same time, including the investment of the listed companies, the minority investment, I think that the horizon of the investment is becoming longer. The capital recycling will be promoted so that the assets will be rotated. So that's our investment policy.

關於中國，繼美國之後是第二大市場。因此我們不會完全撤出中國。這不是我們所預期的。但同時，包括上市公司投資、少數股權投資在內，我認為投資的時間跨度正在拉長。我們將推動資本循環，以促進資產輪動。這就是我們的投資方針。

There are no exceptions. So in comparison to others, the minority investment and the investment period will be longer. We would need to rotate our assets there. But for example, in Hong Kong market, compared to two years ago, is recovering quite a bit. Pre-IPO investment in the technology companies is the main investment that we make. So that is relatively short term.

沒有例外。因此相較於其他市場，少數股權投資與投資期間會更長。我們需要在那裡進行資產輪動。不過例如香港市場，相較兩年前已經回升不少。我們主要進行的是科技公司的Pre-IPO投資。因此那部分相對偏短期。

We have experiences, so we'd like to continue working on those investments. So it doesn't mean that we will withdraw or exit our businesses from China. That is not the case. We will look at the individual assets, and if it's longer term, we would rotate the assets. As a whole, we are not going to increase the overall exposure so much. So we want to control the level of exposure as much as we can. And that's the situation in China.

我們有相關經驗，因此希望持續推進這些投資。所以這並不代表我們會撤出或退出中國的業務。並非如此。我們會檢視個別資產，若屬較長期，就會進行資產輪動。整體而言，我們不會大幅增加總體曝險。因此我們希望在可行範圍內盡量控管曝險水位。這就是中國的情況。

So what about APAC? APAC, it's not just one market. It's multiple countries and multiple markets in APAC. So in terms of or as a region, it's a APAC region, Matsuzaki here with us is in charge. And if you look at, each country or each market. Different cultures and institutions, there are differences. If we can take advantage of our strength, then we would like to expand the businesses. So for example, in Asia Pacific, in the area of the Pacific, Australia, conventionally the auto leasing was the major business.

那APAC呢？APAC並不是單一市場。APAC涵蓋多個國家與多個市場。因此就區域而言是APAC區域，今天在座的松崎負責該區。而若看各個國家或各個市場，不同文化與制度之間存在差異。如果能發揮我們的優勢，我們希望擴大業務。例如在亞太地區的太平洋區域，澳洲傳統上汽車租賃一直是主要業務。

The real estate related financing, there are opportunities there. So already one or two are being executed. We would like to continue to form a team to promote this. And also India, there could be similar opportunities. Rather than thinking about it as one region, we like to look at each country or each market individually and do whatever we can do. Thank you.

不動產相關融資方面也存在機會。目前已經有一兩個案子正在執行。我們希望持續組建團隊來推動這些業務。另外在印度，也可能有類似的機會。與其把它視為單一區域，我們更希望逐一檢視各國或各市場，並盡我們所能去做。謝謝。

Next question is going to be the last one from the press.

下一個問題將是媒體的最後一題。

My name's Inagaki, [Asahi Shimbun] newspaper. I have two questions. First of all, about ORIX Bank. Lending competition and getting more difficult to get the margin. Now BOJ rate hike, for example, is pushing up the deposit interest rate. And The ORIX Bank deposit interest rate, you found it difficult to increase the rate to get more money. Maybe the business model wasn't working very well. So was BOJ rate hike one of the factors behind this? That's my first question. Second question is about portfolio optimization. There is no sacred area, you said. but within your view, Mr. Takahashi, what are the specific challenges and what are the specific focuses?

我叫稻垣，來自《朝日新聞》。我有兩個問題。首先是關於 ORIX 銀行。放款競爭加劇，利差越來越難取得。此外，例如日本央行（BOJ）升息正在推升存款利率。而 ORIX 銀行的存款利率方面，為了吸收更多資金而調升利率似乎很困難。也許商業模式運作得不是很理想。那麼，BOJ 升息是否是背後因素之一？這是我的第一個問題。第二個問題是關於投資組合最佳化。您說沒有禁區；但以您的觀點，高橋先生，具體的課題是什麼、具體的重點又是什麼？

With regard to the first question, I think there are pros and cons, both positive and negative. BOJ's rate hike policy or the monetary policy has changed, and the now interest rate is positive and the stickiness is weak. We are beginning to find that out. And it is more difficult to get the arbitrage or the margin. Now, for the finance sector or the bank sector as a whole, it has a positive impact on the sales. Valuation of the banks was lower than 1, but now it's beyond 1.0x. There was a question about the gain on sales earlier. Basically, we got a positive gain on sales and found a very good partner for this business as well. If PBR was below 1x, there was no incentive to probably to sell. Well, maybe not. There was not an incentive to sell by generating a loss. Anyway, we decided the sales, and I think it had both positive and negative factors. And what was your second question? Could you please repeat?

關於第一個問題，我認為有利有弊，正反兩面都有。BOJ 的升息政策或貨幣政策已經改變，現在利率轉為正值，而「黏著性」較弱。我們開始意識到這一點。而要取得套利或利差也變得更困難。不過，就整體金融業或銀行業而言，對營收是正面影響。銀行的估值曾低於 1 倍，但現在已超過 1.0x。剛才也有人問到出售收益。基本上，我們在出售上取得了正向的出售收益，也為這項業務找到非常好的合作夥伴。如果 PBR 低於 1 倍，可能就沒有動機去出售。嗯，也許不一定。但至少不會有動機在產生損失的情況下出售。總之，我們決定出售，我認為其中同時包含正面與負面因素。那您的第二個問題是什麼？可以請您再重複一次嗎？

About portfolio optimization, you said you will leave no stone unturned. But what are the specific challenges you see in doing this?

關於投資組合最佳化，您說會不遺餘力、無所遺漏。但您認為在推動這件事時，具體會面臨哪些挑戰？

We say there is no sacred area, no stone unturned, so there is no sense of challenge. We will be implementing the reform steadily, logically. And as I said in the summary of the last fiscal year, when we consider capital recycling, it's not just about getting capital gain. We look at ROE and the financial status as a snapshot. So based on the snapshot, some indices are better or worse, and we also look at whether or not they would improve or further grow in following several years. In that sense, we look at growth capacity, growth potential. And thirdly, we want to look at the impact on rating, credit rating, because when we acquire something for portfolio, we have to consider the goodwill as well.

我們說沒有禁區、無所遺漏，所以並沒有「挑戰感」這種說法。我們會穩健且合乎邏輯地推動改革。另外，如同我在上一財年的總結中所說，當我們考慮資本循環（capital recycling）時，不只是為了取得資本利得。我們會把 ROE 與財務狀況視為一個時間點的快照來看。因此，基於這個快照，有些指標較好、有些較差；我們也會看在接下來幾年是否能改善或進一步成長。在這個意義上，我們會看成長能力、成長潛力。第三，我們也想看對評等、信用評等的影響，因為當我們為投資組合收購某些資產時，也必須考量商譽（goodwill）。

And as I said, in the China business, minority investment does have an impact on S&P credit rating, so we have to think about that impact as well. As I said before, we will just not look at the numbers. We will also look at the qualitative aspects, whether there's synergy within the group, whether it's meaningful for the group to have it. So we will look at all of these aspects in terms of portfolio optimization.

另外，如我所說，在中國業務方面，少數股權投資確實會影響 S&P 的信用評等，因此我們也必須考慮這個影響。如同先前所說，我們不會只看數字。我們也會看質化面向，例如是否能在集團內產生綜效、集團持有它是否有意義。因此，在投資組合最佳化上，我們會從所有這些面向來檢視。

That's all the questions we take from the press. We would like to take Now, Tomioka-san of IR will be leading.

以上是我們從媒體端接受的所有提問。接下來將由 IR 的富岡先生帶領進行。

Thank you very much. We would like to take questions from analysts and investors. There are some remote participants, but first of all, we would like to take questions from the people who are present here. Any questions? Anyone here? The person in the front.

非常感謝。接下來我們想接受分析師與投資人的提問。雖然也有遠端參與者，但首先我們會先接受現場與會者的提問。有任何問題嗎？現場有人嗎？前排那位。

Muraki from SMBC Nikko. I have two questions. On page 15, you talked about the ROE, so I would like to ask you a question, 11.7% Is expected for the new fiscal year, so you exceeded your target. ORIX Bank sale gain and also (inaudible) gain, I think those are included. In the underlying capability, it's above 11%. Are you feeling that? That's my first question. Second question is on page 14 on the left-hand side. The capital usage, utilization, what is the current investment environment? If the situation continues to be the same, the share price being too high, you cannot make investments. Is it possible that this number goes down further? Is there such possibility happening? Well, thank you.

我是 SMBC 日興的村木。我有兩個問題。第 15 頁談到 ROE，我想請教：新財年預期為 11.7%，已超過你們的目標。我想其中包含 ORIX 銀行出售收益以及（聽不清）收益。若看本業的實力，是否已在 11% 以上？你們有這樣的感覺嗎？這是第一個問題。第二個問題是第 14 頁左側。關於資本使用／運用，目前的投資環境如何？如果情況持續不變、股價過高而無法投資，這個數字是否可能進一步下降？是否存在這樣的可能性？謝謝。

About the ROE, underlying ROE, as I explained earlier, for this fiscal year, ORIX Bank gains on sale and the major sale of others are included. In the previous fiscal year, the Toshiba was showing strong. There was a gain in relation to KIOXIA which are also included. So in terms of our feeling, in real terms, maybe we are very close to 11%, but we have to work a little bit harder. That's how we feel. So that's the very honest feeling that I can share. As for the capital utilization, relatively speaking, divestment under the current environment, the setting I think is, well, I wouldn't say easier, but easy to handle than buying. Divestment is leading, divestment are happening at the relatively high price.

關於 ROE、也就是本質 ROE，如我先前說明，本財年包含 ORIX 銀行出售收益以及其他大型出售。上一財年則是東芝表現強勁。也包含與 KIOXIA 相關的收益。因此就我們的感覺而言，若以實質來看，可能非常接近 11%，但還需要再更努力一些。我們的感受是這樣。這是我能分享的非常坦率的感覺。至於資本運用，相對而言，在目前環境下，撤資的設定——我不會說更容易——但比起買進更容易操作。撤資走在前面，且撤資多在相對較高的價格進行。

Therefore, the collection is proceeding, the capital utilization comes down and the liquidity position goes up. That has been the trend. As you correctly said, in terms of the real assets, the real estate and also the aircrafts and also the PE, the valuations are rising. So under those circumstances, the projects that we'll interested in working with us, there are many of those examples. How can we increase those projects will be the key. It's not an easy environment to invest in, but unique investment opportunities are the ones that we would like to continue to pursue. Thank you.

因此回收正在推進，資本運用比率下降，而流動性部位上升。這一直是趨勢。如您所言，就實體資產而言，不動產、飛機以及私募股權（PE）的估值都在上升。在這種情況下，有許多希望與我們合作推進的專案案例。如何增加這些專案將是關鍵。投資環境並不容易，但我們仍希望持續追求具獨特性的投資機會。謝謝。

I'm Watanabe from Daiwa Securities. Thank you presentation. I have two questions. Page 49, employed capital ratio. Since April, we had exits and the ORIX Bank and SUGIKO. Based on that pipeline, do you have the pro forma employed capital ratio? How much is that right now? On page 49 on the left-hand side, insurance debt, assessment evaluation. Compared to end of December, the amount of debt is actually bigger. Have you changed the evaluation method? What is the background for this?

我是大和證券的渡邊。謝謝簡報。我有兩個問題。第 49 頁，投入資本比率（employed capital ratio）。自 4 月以來，我們已有退出案，包括 ORIX 銀行與 SUGIKO。基於那個管線（pipeline），你們是否有試算後（pro forma）的投入資本比率？目前大約是多少？另外同樣在第 49 頁左側，保險負債的評估／估值。與 12 月底相比，負債金額實際上更大。你們是否更改了評估方法？其背景原因是什麼？

With regard to employed capital ratio, for 26th March, 86%. ORIX Bank sales was mentioned before, and also SUGIKO. This is PE investment, so this is in and out. Anyway, those are not really reflected in these numbers yet. ORIX Bank sales, if this is included, roughly speaking, 86%, employed capital ratio at the end of the term will be coming down to about 80% according to our pro forma calculations. As I have explained, PE investment and the real asset-focused investments will be accelerated. With regard to your second question, the debt evaluation. Method of evaluation has been changed. That is true. I would like to ask Yamamoto to explain the details of this.

關於運用資本比率，截至3月26日為86%。先前提到的ORIX銀行出售，以及SUGIKO亦同。這是PE投資，因此會有進出（買入與賣出）。總之，這些目前尚未真正反映在這些數字中。若將ORIX銀行出售納入，概略而言，依我們的備考（pro forma）計算，期末的運用資本比率將降至約80%。如我所說，PE投資以及以實體資產為重點的投資將會加速。關於您的第二個問題，負債評價。評價方法已經變更。確實如此。我想請山本說明細節。

Yes. I would like to provide some additional explanation. For insurance policies acquisition, things are progressing smoothly, this is pushing up the amount of liabilities. Liabilities evaluation, especially for long-term interest. In order to be able to apply this more stably, we did something. Well, our corporate debt market was quite unstable for a while. We combined multiple indices in order to evaluate it more accurately. This is pushing up the number. In terms of net asset, this is basically a negative impact. That's all from me. Thank you.

是。我想補充一些說明。關於保險保單的取得，進展順利，這推升了負債金額。負債評價，特別是長期利率方面。為了能更穩定地適用，我們做了一些調整。嗯，我們的公司債市場曾有一段時間相當不穩定。我們結合多個指標，以更精準地進行評價。這推升了該數值。就淨資產而言，基本上是負面影響。我就說到這裡。謝謝。

The person in the third row.

第三排的那位。

Sakamaki from Mizuho Securities. I have two questions. The first is on page 15. The ROE 15%, FY 2035 March. I think you included your enthusiasm there. A year passed, and I think you have already made a progress. This, the feasibility of achieving 15%, is it becoming better? So could you talk about that? The second question, USusiness restructuring is progressing. So what is the timeframe that before you see the improvement of the profitability? Thank you.

我是瑞穗證券的坂卷。我有兩個問題。第一個是關於第15頁。ROE 15%，2035年3月期（FY 2035 March）。我想你們在那裡展現了企圖心。過了一年，我想你們已經有所進展。達成15%的可行性，是否變得更高了？能否談談這點？第二個問題，美國業務重整正在推進。那麼大概在什麼時間點，才會看到獲利能力改善？謝謝。

So 15%, how confident are we? I think that's your question? SO last fiscal year and this fiscal year, if you look at the numbers on page seven, there's a comparison to the FY March '25. I think it's increasing and getting close to that level. I think that's the reason why you asked this question. Frankly speaking, our feeling is that we really have to work very much harder to get to this level. How can I say this? What should we do to reach that level? With us, that we have our Chief Operating Officers and Chief Strategic Officer. We have a Chief Risk Officer. We have the top management team. We have a very frequent discussion, and we are updating the content.

所以15%，我們有多大把握？我想這是您的問題？上一個會計年度與本會計年度，如果看第7頁的數字，與2025年3月期（FY March '25）有比較。我認為正在增加並接近那個水準。我想這就是您提出此問題的原因。坦白說，我們的感覺是，要達到這個水準還必須更加努力。該怎麼說呢？我們要做什麼才能達到那個水準？我們有營運長（COO）與策略長（CSO）。我們也有風險長（CRO）。我們有最高管理團隊。我們非常頻繁地討論，並持續更新內容。

So going through the PDCA, and as long as we take the steady initiatives, I think we can get close to this level. I strongly believe in that. Of course, there could be some temporal improvement of our ROE, ROA, and also there is a decline at some time. But there is still nine years to go, so we like to make sure that we make the linear growth. And if you look at the 3, 5 years timeframe, we would like to get closer to these targets. We would continue to execute what we need to do one by one.

因此，透過PDCA循環，只要我們採取穩健的措施，我認為就能接近這個水準。我對此深信不疑。當然，我們的ROE、ROA可能會出現短期改善，也可能在某些時點下滑。但距離目標仍有九年，因此我們希望確保呈現線性成長。若以3年、5年的時間框架來看，我們希望更接近這些目標。我們會持續把該做的事情一項一項落實執行。

About the ORIX USA, there are several, in March, April, in the area of the private equity portfolio, we made announcement about the sale. In addition to those, there are core and non-core, and we are rotating the portfolio. So maybe we have reached the bottom, but in order to get to the normal profit level, I think we would probably need a few more years.

關於ORIX USA，有幾項在3月、4月於私募股權投資組合領域，我們已公告出售。除此之外，還有核心與非核心資產，我們正在進行投資組合輪替。所以也許我們已經觸底，但要回到正常的獲利水準，我認為大概還需要再花幾年。

The size of the business could shrink, but we like to make sure that we recover the profitability. That is our priority. In charge of USnd Europe, the COO, Suzuki, is here with us. So Suzuki is usually in New York, but very frequently we have a discussion with him to take necessary initiative. So we'd like to spend a few more years so that we can normalize the profitability level. That's the very frank views that I shared. Thank you very much.

業務規模可能會縮小，但我們希望確保獲利能力能恢復。這是我們的優先事項。負責美國與歐洲的營運長鈴木也在現場。鈴木通常在紐約，但我們非常頻繁地與他討論，以採取必要的措施。因此我們希望再花幾年時間，使獲利水準回歸正常化。以上是我非常坦率的看法。非常感謝。

Any other questions? Third row from the front.

還有其他問題嗎？前面數來第三排。

Thank you. Takemura, Morgan Stanley, MUFG. I have two questions. My first question is related to the last question. How do you view the future of the USWhat is your outlook? Page 8 shows that the finance category profit JPY189.2 billion, and excluding one-time factors, JPY175.8 billion. So this is minus JPY13.4 billion. Now last fiscal year, I'm sorry. Correction. The USUS actually included in finance, I think. Anyway, debt recovery gain on sales was about JPY8 billion or JPY7 billion last year. So I think there's an absence of this. You now have a absence of the profit from the bank. Naturally should be about minus JPY20 billion, but actually JPY13.4 billion. So the difference explains the recovery in the United States. Is that the correct understanding? Can you please also talk about the background? That's my first question.

謝謝。我是摩根士丹利MUFG的竹村。我有兩個問題。第一個問題與剛才的問題相關。您如何看待美國業務的未來？您的展望是什麼？第8頁顯示，金融類別利潤為1,892億日圓，扣除一次性因素後為1,758億日圓。也就是減少134億日圓。現在，上一個會計年度，不好意思。更正。美國業務其實是包含在金融裡面，我想是這樣。總之，去年債權回收（servicer）出售的出售收益約為80億或70億日圓。所以我認為這部分今年沒有了。另外，銀行的利潤現在也沒有了。照理說應該約減少200億日圓，但實際上是134億日圓。因此差額可解釋為美國的復甦。這樣理解正確嗎？也請談談其背景。這是我的第一個問題。

There are multiple factors, and therefore it is very difficult to do an apple-to-apple comparison, but what you said is largely correct. Gain on sales of the servicer and also for ORIX Bank sales in the first half, that is the assumption. So second half, profit will not be coming in from ORIX Bank. But last fiscal year, we had the profit coming in for the full year, contributing for the full year. So net-net for the finance category, we believe that the profit will increase slightly. As you have mentioned, ORIX USA recovery is accounted for. Credit cost allocation was done for ORIX USA in the prior fiscal year.

因素很多，因此很難做完全同口徑（apple-to-apple）的比較，但您所說的大致正確。上半年包含了債權回收公司（servicer）的出售收益，以及ORIX銀行出售，這是前提。因此下半年將不會再有ORIX銀行的利潤進帳。但上一個會計年度，ORIX銀行的利潤是全年計入、全年貢獻。因此就金融類別整體而言，我們認為利潤將小幅增加。如您所提到，已將ORIX USA的復甦納入考量。上一個會計年度已對ORIX USA進行信用成本的分攤（allocation）。

This was a big allocation, and the absence of this will lead to recovery, big recovery. There are many positive and negative factors. I cannot explain everything today. But that is, basically the picture. Outlook for the United States. This is a very difficult question to answer. In terms of the businesses that we have, downside protection wise, we have done everything we could in the last fiscal year already, basically. So it's just a question of how long will it take to recover. Example deal, project sales is now ongoing, and potential buyers are sometimes private equities. Private equity also has private debt business.

那是一筆很大的分攤，而今年沒有這項分攤將帶來復甦、顯著復甦。正負面因素很多。我今天無法把所有內容都說明完。但基本上就是這樣的圖像。至於美國的展望。這是一個非常難回答的問題。就我們所擁有的業務而言，在下行保護（downside protection）方面，我們在上一個會計年度基本上已經把能做的都做了。因此接下來只是需要多久才能復甦的問題。例如某些交易，專案出售目前正在進行，潛在買家有時是私募股權。私募股權也有私募債（private debt）業務。

And the private equity, private debt within the current USnvironment, including the major players, are basically struggling, and the PEPDs that are listed are suffering from much lower share prices as well. So when these problems start to materialize to a greater extent, then speed of asset recycling will slow down, and therefore, we don't have a extremely positive outlook for the United States. Rather than that, we need to take a very close look at what's happening in the USUSa day-by-day basis. Just this weekend, Suzuki has come back from the US, USink maybe he has a comment about his own assessment.

而在目前的美國環境下，私募股權、私募債（private debt）領域（包含主要玩家）基本上都在苦撐；同時，已上市的PE/PD公司也因股價大幅走低而承受壓力。因此，當這些問題開始更大程度地顯現時，資產回收再循環（asset recycling）的速度將會放慢；也因此，我們對美國並沒有非常正面的展望。與其如此，我們需要非常密切地、以日為單位觀察美國的情況。就在這個週末，鈴木剛從美國回來，我想他或許可以就他自己的評估發表一些看法。

I'm in charge of Europe and the US. My name is Suzuki. Our CEO, Takahashi, has basically given you the overall picture of the USlready. Macroeconomic environment-wise, when you look at the non-bank business, including the fund business, private debt impact does slow things down. With regard to ORIX USA, thankfully, the impact is quite small, as was explained before. Our business partners are impacted, affected by this. So again, we are exiting some private equity business, and also there is a non-core portion.

我負責歐洲與美國。我叫鈴木。我們的CEO高橋先生，基本上已經向各位說明了美國的整體情況。就總體經濟環境而言，當你看非銀行業務（包含基金業務）時，私募債的影響確實會讓進展放慢。至於ORIX USA，所幸影響相當小，如先前所說明。但我們的業務夥伴則受到影響。因此，我們同樣正在退出部分私募股權業務，另外也有一部分屬於非核心（non-core）。

Compared to when we were planning things last year, timing of sales and also the amount that we can get from that is something that we have to pay close attention to, and we need to follow up closely in terms of recovery of the assets. Now with regard to new projects, new deals, there are three things that we're considering, largely speaking. One is a company, Hilco, and Hilco can do asset-based leasing, asset-based financing based on their asset evaluation capabilities, and we can turn this into an asset management business, so this is alternative asset management product structure that can be done for the future. And product mix-wise, we also want to focus on real estate.

相較於我們去年規劃時的情況，出售的時點以及可取得的金額，是我們必須密切留意的事項；同時，在資產回收方面也需要緊密追蹤。至於新專案、新交易，大致上我們正在考量三件事。第一是Hilco這家公司。Hilco能憑藉其資產評估能力，進行以資產為基礎的租賃（asset-based leasing）與以資產為基礎的融資（asset-based financing）；我們也能將其發展為資產管理業務，因此這是一種可在未來推動的另類資產管理產品架構。另外在產品組合（product mix）方面，我們也希望聚焦不動產。

This is, of course, real assets. In the United States, agency targeted mortgage in real estate has been our focus, but we want to expand further, including multi-family residential financing and also not just financing, but also equity investments. These are the potential areas that we want to get into, and also other areas where we have real estate related opportunities.

這當然屬於實體資產（real assets）。在美國，我們一直以不動產的機構（agency）標的房貸為重點，但我們希望進一步擴大，包括多戶住宅（multi-family）融資；而且不僅是融資，也包含股權投資。這些是我們想切入的潛在領域，另外也有其他我們具備不動產相關機會的領域。

Now, asset management and alternative focus asset management, this is something that we will continue to promote. NXT is one of the cores. They do direct lending. The market recognition has improved and the first closing of a new fund launch was also successful. We want to continue to promote this. Will we see the result of this already within six months? The answer would be no. It will take a little bit longer. We will continue to run this business meticulously over the long term.

接著是資產管理與聚焦另類資產的資產管理，這是我們將持續推動的方向。NXT是其中的核心之一。他們從事直接放款（direct lending）。市場認知度已提升，新基金啟動的首次募集（first closing）也已成功。我們希望持續推動。那麼，六個月內就能看到成果嗎？答案是否定的。還需要更長一些時間。我們會以長期視角，細緻地經營這項業務。

Thank you very much for a very detailed explanation. I have one more question about dividend. ORIX Bank sales expected in the first half. SUGIKO also first half. First half dividend is 39% against the profit of the first half. Is that the correct understanding? This year you'll be paying out a lot of dividend. Is this going to be the baseline for the next fiscal year's dividend?

非常感謝您非常詳細的說明。我還有一個關於股利（dividend）的问题。ORIX Bank預計在上半年出售。SUGIKO也在上半年。上半年股利相對於上半年獲利的比例是39%。這樣理解正確嗎？今年你們會發放相當多的股利。這會成為下一個會計年度股利的基準嗎？

With regard to your first question, your understanding is correct. And with regard to your second question, at the board of directors, we are debating this quite a lot, and we need some more time to debate this. We thought that this question will be asked. So let me explain about Toshiba. KIOXIA share based on the large shareholding report sold by several percentage point by March. And equity ratio is already 17.6% as far as we know. This is what we found out at the end of the fiscal year. Now Toshiba uses USccounting standards. Their accounting process, well, they'll be doing the earnings call 15th of May.

關於第一個問題，您的理解正確。至於第二個問題，我們在董事會上也討論了很多，仍需要一些時間再進一步討論。我們也預期會被問到這個問題。因此我來說明一下東芝（Toshiba）。根據大量持股報告，KIOXIA的持股在3月前已出售了數個百分點。據我們所知，其持股比例已是17.6%。這是我們在會計年度末掌握到的情況。另外，東芝採用美國會計準則（US accounting standards）。至於他們的會計處理方式，他們將在5月15日召開法說（earnings call）。

We have to wait for that to see how they will do this. But Toshiba may reclassify KIOXIA to marketable securities. This is a possibility. So according to USccounting standards, it will no longer be equity method. It will be market to market.Which means that, based on the share price of last fiscal year-end, it's possible that they want to capture the gain on valuation. So whether Toshiba will sell KIOXIA, even if they don't sell KIOXIA, if it's reclassified to marketable securities, then the evaluation will be different based on the share price at the end of the term.

我們必須等到那時，才能確認他們會如何處理。不過，東芝可能會將KIOXIA重新分類為可交易證券（marketable securities）。這是一種可能性。若依美國會計準則，將不再採用權益法（equity method）。而會改為按市價衡量（mark to market）。也就是說，基於上一會計年度期末的股價，他們可能希望認列評價利益（gain on valuation）。因此，無論東芝是否出售KIOXIA，即使不出售，只要重新分類為可交易證券，期末股價不同也會導致評價結果不同。

And whatever Toshiba captures will be captured by us based on the equity method, based on the stake. And I'm sure as analysts you have already did the calculation, but we have to take that into consideration. And last year's prior's dividend, you'd been used as a full may be questionable when you consider sustainable return policy. So there is still a potential debate there, and we need some more time, and we would like to deliberate this at the board level and decide on the policy, the direction.

而東芝所認列的部分，我們也會依權益法、按持股比例反映在我們這邊。我相信各位分析師應該已經做過試算，但我們必須把這點納入考量。此外，若從可持續的股東回報政策（sustainable return policy）來看，去年（或前期）的股利是否能作為完全的基準，可能仍有疑問。因此仍存在討論空間，我們需要更多時間，並希望在董事會層級審議後，決定政策與方向。

Thank you very much. Next, I'd like to take a question from the remote participants. JPMorgan Securities, Sato-san, go ahead.

非常感謝。接下來我想請遠端與會者提問。摩根大通證券（JPMorgan Securities）的佐藤先生，請。

Thank you very much for this opportunity. This is Sato speaking. Two questions, please. First, about the USespecially the credit business. I'd like to know more about the current situation. I think you referred to it earlier. The credit value creation expenses is included and in the supplementary information. It's about JPY10 billion, the lending support, and this I think is mostly US. You mentioned that the risk is not so big. And so what is your recognition about this credit loss being included here? Could you explain that? Second is about the capital gain. On page 46, this fiscal year capital gains are mentioned. Already something which was discussed, bank and SUGIKO, JPY180 billion, I think.

非常感謝給我這個機會。我是佐藤。我有兩個問題。第一個是關於美國，特別是信用（credit）業務。我想更了解目前的狀況。我想您先前有提到。補充資料中包含了「信用價值創造費用」（credit value creation expenses）。大約是日圓100億，屬於放款支援（lending support），我理解這主要是在美國。您提到風險不算大。那麼，對於這裡所包含的信用損失（credit loss），你們的認知是什麼？能否說明一下？第二個問題是關於資本利得（capital gain）。在第46頁提到本會計年度的資本利得。已經討論過的銀行與SUGIKO，合計日圓1,800億，我想是這個數字。

So on the now the capital gain in comparison to your plan, the normal level, something that might emerge from now on, I think that the budget for that is quite controlled. Other sales, does that mean that you're not very aggressive about that? So this is about the capital gain plan. Could you explain the capital gain plan a little bit further? Sato-san, thank you.

那麼，關於資本利得，相較於你們的計畫、或一般正常水準，從現在起可能出現的部分，我認為你們對其預算控管得相當嚴格。其他出售（other sales）是否表示你們在這方面並不積極？也就是關於資本利得計畫。能否再更進一步說明資本利得計畫？佐藤先生，謝謝。

Sato-san, thank you. About the USredit cost. If you go deeper and calculate, I think you will be able to get the numbers relatively roughly speaking, about the JPY24 billion credit cost included in the previous fiscal year. The breakdowns include, as we mentioned in the past earnings call, one thing, as it was mentioned earlier, is the mortgage business. For the agencies, we have that business. so with the high interest rate, which is continuing, the borrower's credit quality is coming down. And so among the numbers that we mentioned, the major credit expense is for the real estate mortgage business. Another is the growth capital for the startups, the financing business. So in that portfolio, specific names, the situation is not so great. So we have some reserves for that.

佐藤先生，謝謝您。關於美國的信用成本。如果再深入一點計算，我想您大致上可以推算出前一個會計年度所計入、約2,400億日圓的信用成本。其構成包含我們在過去的法說會上提到的幾點，其中之一，如先前也提到的，是房貸業務。我們在代理機構方面有該業務；在高利率持續的情況下，借款人的信用品質正在下滑。因此，在我們提到的數字中，主要的信用費用來自不動產抵押貸款業務。另一項是針對新創的成長資本，也就是融資業務。在那個投資組合中，某些特定個案的狀況並不理想。因此我們對此提列了一些準備金。

So those are the 2, that is the mortgage related and the gross capital financing. It's the reserve for a specific name. Those two are the major part of this. Of course, that, we do have a debt business which is very much diversified. Even at the normal level, a certain level of the reserve becomes unnecessary, and that would continue to be the case. but when we announce the interim results, we mention this. As much as we can foresee, when we can reserve or have a provision in the first half, we would like to have a conservative approach to have that. So for this fiscal year, we expect that we can reach to that normalized level.

所以主要就是這兩項：與房貸相關，以及成長資本融資。這是針對特定個案所提列的準備金。這兩項構成了本次的主要部分。當然，我們也有一個高度分散的債權業務。即使在正常水準下，某一程度的準備金也會變得不再需要，而這種情況預計仍會持續；但在我們公布期中結果時會提到這點。在我們可預見的範圍內，若能在上半年先行提列準備或備抵，我們希望採取保守作法來處理。因此就本會計年度而言，我們預期可回到正常化水準。

As for the capital gain plan, it just happens that it's not really toward the end of the fiscal year, but the beginning of the fiscal year, there are some major gains from the sale. It just happened to be happening at that timing. It doesn't mean that there will be a major time lag. We have to look at the market and we would like to try to maximize our assets when we consider the timing of the sale. So I wouldn't mention the specific name or specific number, but in the case of real estate and the renewable projects and the private equities, and we continue to do the asset rotation and the capital recycling. We apply our strategies. For this fiscal year, only one month and 11 month to go. So we would proceed with the sale from now on, and there will be some the proceeds or the gains from those sales booked in eventually. Thank you.

至於資本利得計畫，剛好不是在會計年度末，而是在會計年度初有一些重大的出售收益。只是剛好發生在那個時間點。這並不代表會有很大的時間落差。我們必須觀察市場，並在考量出售時點時，盡可能使資產價值最大化。因此我不會提及特定名稱或特定數字，但就不動產、再生能源專案以及私募股權而言，我們會持續進行資產輪動與資本再循環。我們會運用既有策略。本會計年度才過一個月，還有11個月。因此我們將從現在開始推進出售，最終也會陸續認列這些出售的收入或收益。謝謝。

One point of clarification. Earlier, USn the United States, what I wanted to ask was that on page 32, especially the credit business line and for the full year, reserve or provision was mentioned. But at the end of the fiscal year, credit line probably was included. That's the growth capital. This is for the startup lending. That is the debt. That is where the reserve provision happened?

我想再釐清一點。先前在美國的部分，我想問的是第32頁，特別是信用業務那一行，提到了全年準備金或備抵提列。但在會計年度末，信用那一行應該也包含在內。那是成長資本。這是針對新創放款。那是債權。也就是在那裡發生了準備／備抵提列嗎？

Yes, that's correct. Your understanding is correct.

是的，沒錯。您的理解正確。

Thank you, Mr. Sato. We see 2 more hands up. Nomura Securities, Sasaki-san, please ask your question.

謝謝您，佐藤先生。我們看到還有兩位舉手。野村證券的佐佐木先生，請提問。

This is Sasaki, Nomura Securities. Thank you. Page 8 of the presentation material, I would like to understand how to read this slide. For FY27 March, profit is high. And then 28 March, considering the following fiscal year, I think you have big names with latent profit. Until March '28, I expect the profit level to continue to be high or continue to increase. What about FY29 March or 2030 March? Is there going to be some ups and downs, or do you think the profit, the growth trend will still continue? What is the management's understanding? That's my question.

我是野村證券的佐佐木。謝謝。簡報資料第8頁，我想了解這張投影片應該如何解讀。以2027年3月止年度（FY27/3）來看，獲利很高。接著到2028年3月止年度（FY28/3），考量下一個會計年度，我想您有一些具備潛在利益的大型案子。到2028年3月為止，我預期獲利水準會維持在高檔或持續上升。那麼2029年3月止年度（FY29/3）或2030年3月止年度（FY30/3）呢？獲利會有一些起伏嗎？還是您認為成長趨勢仍會持續？管理層的理解是什麼？以上是我的問題。

Last year, Greenko gain on sales and also ORIX servicer sales are a little bit smaller. For this fiscal year, we have a latent gain for sales for ORIX Bank but these are one-offs. This is not something that we can book year after year, as you can imagine. In order to maintain the growth in profitability, we believe that there are a lot of latent profit in core business as well, we have to materialize that. We don't want to sell things just for that purpose. Real estate, energy, and aircrafts.

去年，Greenko的出售收益以及ORIX Servicer的出售規模都稍微小一些。本會計年度，我們有ORIX銀行的出售潛在收益，但這些都是一次性項目。如您所想，這不是能夠年年認列的東西。為了維持獲利成長，我們認為核心業務中也存在許多潛在利益，必須將其實現。我們不希望只是為了這個目的而去出售資產。不動產、能源與飛機等。

We will be recycling assets, we buy and sell and buy and sell. We need to continuously do that. Rather than going up and down year after year, we want to grow a recurring capital gain on a continuous basis as much as possible. But it depends on the market situation. Sometimes we can sell at a higher price or lower price against our expectations. Considering the recent environment, we are seeing some deals which are priced higher than our original expectations but can we continue this trend into the next fiscal year and the following fiscal year? Well, we have to think about the macroeconomic environment impact. We're not talking about 2035, but we're not just thinking about next fiscal year, the fourth fiscal year. We're really focused on executing what we can within this current fiscal year.

我們會進行資產再循環，買進、賣出、再買進、再賣出。我們需要持續這麼做。與其每年大起大落，我們希望盡可能持續性地擴大經常性的資本利得。但這也取決於市場狀況。有時候我們可能以高於或低於預期的價格出售。就近期環境而言，我們看到一些交易的定價高於原先預期；但這個趨勢能否延續到下一個會計年度以及再下一個會計年度？這就必須考量總體經濟環境的影響。我們不是在談2035年，但也不只是思考下一個會計年度、第四個會計年度。我們真正聚焦的是在本會計年度內把能做的事情確實執行。

Meaning that we want to capture all the profit opportunities, and also we have the long-term vision into 2035, and there was a question about the feasibility of this. We will be focusing both on ROE and profit growth. And we have the mid to long-term plan, but we, as management, focused on what we execute within this current fiscal year in terms of resource and also time. I know that I'm not answering your question directly. I'm sorry. That is what we're thinking.

也就是說，我們希望掌握所有獲利機會；同時我們也有到2035年的長期願景，先前也有人問到其可行性。我們將同時聚焦ROE與獲利成長。我們有中長期計畫，但就資源與時間而言，管理層更專注於在本會計年度內能夠執行的事項。我知道我沒有直接回答您的問題。很抱歉。這就是我們的想法。

Thank you. We are getting close to the end time. I'd like to take one last question. BofA, Tsujino-san.

謝謝。時間差不多接近尾聲。我想再接受最後一個問題。美銀（BofA）的辻野先生。

Thank you. Two questions. This year's forecast. Business investment and equity profit. It's difficult, I'm sure, to try to come up with the expectations, so higher than last year and relatively conservative forecast, I think, is shown. Earlier, you mentioned that there could be investment securities or the, it's possible that the shares are being sold quite a bit. In that sense, you are having the conservative view. That's how you got to JPY530 billion. That's my first question. Should I go one by one?

謝謝。兩個問題。關於今年的預測。事業投資與權益法利益。我想要提出預期確實很困難，因此我看到您給出的預測高於去年、但相對保守。先前您提到，可能會有投資有價證券，或是股份出售的情況相當多。從這個意義上來看，您採取了保守的看法。因此得出5,300億日圓。這是我的第一個問題。我需要一個一個問嗎？

Tsujino-san, hello. To your first question, you're referring to Toshiba. This, JPY550 billion, the assumption that we have is that Toshiba has KIOXIA under the equity method, and ORIX also have that under the equity method. We are the LP. How Toshiba will announce their business results, we don't know. After checking on their business or earnings, if the classification changes, then from the equity method to the investment securities, it could change.

Tsujino 先生，您好。關於您的第一個問題，您指的是東芝。這個 5,500 億日圓，我們的假設是東芝以權益法認列 KIOXIA，而 ORIX 也以權益法認列。我們是 LP。東芝將如何公告其業績結果，我們不清楚。在確認其業務或獲利情況後，若分類有所變更，則可能會從權益法改為投資有價證券，進而產生變動。

I'm talking about the KIOXIA. We need to look at how they announce their business results. Once again, based on that, we would like to make the evaluation. I think that there is a sale on the gain on sale of the KIOXIA. Based on a certain level of the assumption, you made this forecast number. Well, there's a three-month delay to incorporate the equity profit of innovation to Toshiba. As far as we can confirm, during the last fiscal year, there was a sale and the unit price of the sale is not known, but we base our forecast on the reasonable price and the parts that were sold are incorporated into the forecast.

我是在談 KIOXIA。我們需要看他們如何公告其業績結果。再次強調，我們希望基於此來進行評價。我認為有一筆 KIOXIA 的出售收益。基於一定程度的假設，您做出了這個預測數字。另外，將創新（innovation）的權益法利益納入東芝，會有三個月的遞延。就我們可確認的範圍，上一個會計年度確實有出售，但出售單價不明；因此我們以合理價格為基礎，並將已出售的部分納入預測。

As for the forecast for this fiscal year, the environment and energy, the impairment, I thought I expected a bigger impairment, but it was smaller than what I expected. That is in Q4, I think, in Q4, it's JPY6.1 billion. This, March 27th, I think there could be some additional impairment. Is that the case?

至於本會計年度的預測，在環境與能源方面的減損，我原本以為會有更大的減損，但實際上比我預期的小。我想是在第 4 季，在第 4 季是 61 億日圓。這個在 3 月 27 日，我想可能還會有一些追加減損。是這樣嗎？

As of now, no. Well, I was the head of the energy and environment in the past, so Tsujino-san probably thought that this is low. I was actually my impression was that this was quite high, so this is regrettable. We have no plans to incorporate any additional impairment.

截至目前，沒有。我過去曾擔任能源與環境部門的負責人，所以 Tsujino 先生可能覺得這個數字偏低。但我的印象其實是這個數字相當高，因此這點令人遺憾。我們沒有計畫納入任何追加減損。

Just one last point. March 28, the ROE of 11%, it's a long way in the future, and probably it's up to Toshiba. I'm sure that it was difficult for you to come up with this number, those are the very rough numbers. If no changes from Toshiba, then 11% probably is difficult to achieve. Is that right?

最後再問一點。到 3 月 28 日 ROE 11%，那是很久以後的事，而且大概取決於東芝。我相信要提出這個數字對你們來說很不容易，那些都是非常粗略的數字。如果東芝沒有變化，那 11% 可能很難達成。是這樣嗎？

Well, earlier, during the press, or Q&A with the mass media, there was a similar question. Of course, it's not an easy number for us to achieve. We need to make further efforts. Naturally, when we made the plan, in the previous fiscal year, we said that our target remains the same. At 11%. We continue to make efforts, and it is an achievable number. Right now we are May '26. In March '28, there is still two years to go. I think there are many initiatives that we can take. We are not changing this. As a management team, who are here today, we will be working hard in coming two years in order to get to this level. Thank you very much.

嗯，先前在記者會或與媒體的問答中，也有類似的問題。當然，這不是一個容易達成的數字。我們需要進一步努力。自然地，在我們制定計畫時，在上一個會計年度，我們也說過目標維持不變。就是 11%。我們會持續努力，而且這是可以達成的數字。現在是 2026 年 5 月。距離 2028 年 3 月還有兩年。我認為我們可以採取許多措施。我們不會改變這個目標。作為今天在場的經營團隊，我們將在接下來兩年全力以赴，以達到這個水準。非常感謝。

Thank you very much. That concludes the earnings call. Before closing, we would like to ask our CEO Takahashi to say a few words.

非常感謝。以上為本次法說會內容。在結束之前，我們想請 CEO 高橋說幾句話。

Again, thank you very much for joining us today. As I said in the beginning, last year, we announced our long-term vision and also long-term financial objectives that we want to achieve over time. We're talking about long duration, and there are many things that will need to be executed. And 12 months have passed. We have nine years still to go. It's a very long duration, but we just need to focus on execution.

再次非常感謝各位今天的參與。如同我在一開始所說，去年我們公布了長期願景，以及我們希望隨時間達成的長期財務目標。我們談的是長期期間，且有許多事項需要執行。而 12 個月已經過去。我們仍然還有 9 年。這是一段非常長的期間，但我們只需要專注於執行。

We will be implementing action plans one by one steadily in order to achieve our goals. And to that end, the whole management team will work closely together. And we really appreciate your kind support going forward, and I would like to thank you again for joining us today. Thank you.

為了達成目標，我們將穩健地逐一推動各項行動計畫。為此，整個經營團隊將緊密合作。也非常感謝各位未來持續的支持，並再次感謝各位今天的參與。謝謝。

Thank you very much. And that concludes the earnings call. Thank you very much for your participation.

非常感謝。本次法說會到此結束。非常感謝各位的參與。