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Shunsuke TakedaVice Chairman and CFO

ORIX Corporation

ORIX’s Expansion into Asia

--Lessons Learned in ASEAN and East Asia--

The 31st AJBM in Bangkok

November 23, 2005

5.1.1.3


1. The Importance of the Asian Market

2. ORIX’s Strategy in Asia

3. Pros and Cons of Doing Business in Asia

4. Factors to Consider When Investing

OutlineOutline


1.1. The Importance of the Asian The Importance of the Asian MarketMarket


A Global Economic Power as a RegionA Global Economic Power as a Region

23% of the world’s GDP in 2003

Intraregional trade more than 50% of total trade

FDI in Asia at $148 billion in 2004


2.2. ORIX’s Strategy in AsiaORIX’s Strategy in Asia


ORIX Has a Long History throughout AsiaORIX Has a Long History throughout AsiaCompany Country Est. Partner

ORIX Asia Ltd Hong Kong 1971 ORIX 100%

ORIX Leasing Singapore Singapore 1972 DBS Bank; UOB

ORIX Car Rentals Singapore 1981 Tan Chong Investments Ltd

ORIX Leasing Malaysia Malaysia 1973 Antah Holding

Korea Development Leasing* Korea 1975 Korea Long-Term Credit Bank; IFC

P.T. ORIX Indonesia Indonesia 1975 Yayasan K.K., Bank Indonesia

ORIX METRO Leasing Philippines 1975 METRO Bank

Thai ORIX Leasing Thailand 1978 TMB Bank Public Co.

Lanka ORIX Leasing Sri Lanka 1980 RM Nanayakkara; IFC

China Orient Leasing (*) China 1981 CITIC, BMEEG Corp.

ORIX Taiwan Taiwan 1982 ORIX 95%

ORIX Leasing Pakistan Pakistan 1986 Majid Al Futtaim

ORIX Australia Australia 1986 ORIX 100%

ORIX New Zealand New Zealand 1988 ORIX 100%

Infrastructure Leasing & Financial Services India 1993 UTI Asset Management; IFC

Vietnam Representative Office* Vietnam 1995 N/A* No longer under operation


Partnering with Local Financial Institutions or IFC Financial institutions as provider of equity and debt

IFC as promoter of financial market development

Focus on SMEs Concentrating market efforts on local SMEs

90% of all customers are local

Hiring of Local Management Hiring and training local staff who best understand the market

Almost all top executives and management are local hires

Local Partners, Customers & ManagementLocal Partners, Customers & Management

Three Basic PoliciesThree Basic Policies


Program Discussions with ORIX Top Management

Learning about ORIX’s Different Businesses

Learning about ORIX’s Culture and Management Style

Attendees 20-30 promising young management from about 20

countries, including Thailand, Indonesia, Malaysia, Singapore, Philippines, India, Sri Lanka, Pakistan, Hong Kong, Taiwan, Korea, Kazakhstan

Young Wave ForumYoung Wave Forum

Developing Local Talent


3.3. Pros and Cons of Doing Business Pros and Cons of Doing Business in Asiain Asia


Important Contributor to Earnings

Results for FY3/05

Total Assets: JPY 500 bn

Pretax Income: JPY 22 bn

Employees: 3,200

Results for FY3/05

Total Assets: JPY 500 bn

Pretax Income: JPY 22 bn

Employees: 3,200

0

5

10

15

20

25

FY3/01 FY3/02 FY3/03 FY3/04 FY3/05

Segment Profits in Asia and Oceania

JPY bn


4.4. Factors to Consider When Factors to Consider When InvestingInvesting


Four Key Factors

Political Stability

Vital for steady economic development

Development of Business Infrastructure

Achievable through FTA or East Asian Union

Timing of Investment

Investment in right market at right time

Unique Industrial Policies

E.g. Biotech in Korea, electronics in Singapore, automobiles in Thailand


Shunsuke TakedaVice Chairman and CFO

ORIX Corporation

ORIX’s Expansion into Asia

--Lessons Learned in ASEAN and East Asia--

The 31st AJBM in Bangkok

November 23, 2005

0 Copyright © ORIX Corporation All rights reserved.

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