Interim report
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Consolidated Financial Results April 1 , 2026 - June 30 , 2026 August 6 , 2026 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 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
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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/) (millions of yen) Total Revenues *2 Year-on-Year Change Operating Income *2 Year-on-Year Change Income from Continuing Operations before Income Taxes *2 Year-on-Year Change Net Income Attributable to ORIX Corporation Shareholders Year-on-Year Change June 30, 2026 876,628 17.4% 133,919 11.7% 406,150 178.8% 280,832 161.8% June 30, 2025 746,973 7.7% 119,918 49.6% 145,666 27.8% 107,288 23.7% Basic Earnings Per Share Diluted Earnings Per Share June 30, 2026 256.07 255.56 June 30, 2025 94.63 94.44 Total Assets Total Equity Shareholders’ Equity Shareholders’ Equity Ratio June 30, 2026 18,256,420 4,790,217 4,710,425 25.8% March 31, 2026 18,002,776 4,573,068 4,482,500 24.9% First Quarter-end Second Quarter-end Third Quarter-end Year-end Total March 31, 2026 － 93.76 － 62.34 156.10 March 31, 2027 － March 31, 2027 (Est.) 107.27 － － 187.36 Net Income Attributable to ORIX Corporation Shareholders Year-on-Year Change Six Months Ending September 30, 2026 840,000 209.9% Fiscal Year Ending March 31, 2027 530,000 18.5% Consolidated Financial Results from April 1, 2026 to June 30, 2026 (U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries) 1. Performance Highlights as of and for the Three Months Ended June 30, 2026 (1) Performance Highlights - Operating Results (Unaudited) *Note 1: “Comprehensive Income Attributable to ORIX Corporation Shareholders” was ¥335,588 million for the three months ended June 30, 2026 (year-on-year change was a 132.3% increase) and ¥144,448 million for the three months ended June 30, 2025 (year-on-year change was a 30.3% decrease). *Note 2: As a result of the decision to sell the shares of ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”), in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations, the business of the Target has been classified as held for sale and a discontinued operation. Accordingly, total revenues, operating income and income before income taxes for the three months ended June 30, 2026 are presented on a continuing operations basis, excluding the results of the business of the Target, which has been separately presented as discontinued operations. The corresponding amounts for the three months ended June 30, 2025 have also been retrospectively reclassified to conform to the current- period presentation. For further information on the discontinued operations, see 2. Financial Information (8) Discontinued Operations Information (Unaudited). *Note 3: 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) *Note 4: “Shareholders’ Equity” refers to “Total ORIX Corporation Shareholders’ Equity.” “Shareholders’ Equity Ratio” is the ratio of “Total ORIX Corporation Shareholders’ Equity” to “Total Assets.” 2. Dividends (Unaudited) *Note 5: Revision from previously announced dividend forecast: Yes *Note 6: For the fiscal year ending March 31, 2027, after-tax gains or losses arising from the sale and valuation of shares of Kioxia Holdings Corporation (Head office: Minato-ku, Tokyo; President and CEO: Hiroo Ota; “Kioxia”), recognized through TB Investment Limited Partnership, an equity-method affiliate of ORIX Corporation, in connection with transactions by Toshiba Corporation (Head Office: Kawasaki City, Kanagawa Prefecture; President and CEO: Taro Shimada; “Toshiba”), will be recognized in ORIX Corporation’s consolidated earnings. Although a substantial amount of such gains or losses is expected to be recognized in net income attributable to ORIX Corporation Shareholders for the six months ending September 30, 2026, such gains or losses are expected to fluctuate with future changes in Kioxia’s share price and therefore remain uncertain. In addition, ORIX Corporation will not directly receive cash inflows corresponding to such gains or losses. Accordingly, at the Board of Directors meeting held on August 6, 2026, ORIX Corporation resolved to revise its dividend policy for the fiscal year ending March 31, 2027, such that the annual dividend will be the higher of either an amount calculated by applying 39% to adjusted EPS calculated based on adjusted net income attributable to ORIX Corporation Shareholders excluding such gains or losses stated above, or ¥156.10 per share. The forecasted dividend for the second quarter-end shown below assumes adjusted net income attributable to ORIX Corporation Shareholders of ¥300,000 million for the six months ending September 30, 2026, as set forth in the Forecast below. Dividends per share are calculated based on the number of issued shares excluding treasury shares and may fluctuate due to changes in the number of treasury shares resulting from share repurchases. 3. Forecast for the Year Ending March 31, 2027 (Unaudited) *Note 7: 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. *Note 8: Revision from previously announced forecast for the year ending March 31, 2027: Yes *Note 9: Adjusted net income attributable to ORIX Corporation Shareholders for the six months ending September 30, 2026 is forecasted at ¥300,000 million, excluding the after-tax amount of gains on sales and valuation of Kioxia shares recognized through TB Investment Limited Partnership, an equity-method affiliate of ORIX Corporation, and recorded by Toshiba Corporation (the “Adjustment”). The amount of the Adjustment for the fiscal year ending March 31, 2027 is expected to fluctuate due to future changes in Kioxia’s share price and other factors. As it is currently difficult to reasonably estimate such amount, adjusted net income attributable to ORIX Corporation Shareholders for the fiscal year ending March 31, 2027 has not been disclosed. - 1 -
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(1) Significant Changes in Scope of Consolidation 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 adoptions of new accounting standards 2. Other than those above Yes ( ) Yes ( ) No ( ｘ ) No ( ｘ ) 4. Other Information (4) Number of Issued Shares (Ordinary Shares) 1. The number of issued shares, including treasury stock, was 1,124,106,624 as of June 30, 2026, and 1,124,106,624 as of March 31, 2026. 2. The number of treasury stock was 28,838,843 as of June 30, 2026, and 22,484,702 as of March 31, 2026. 3. The average number of outstanding shares was 1,096,391,135 for the three months ended June 30, 2026, and 1,133,591,927 for the three months ended June 30, 2025. The Company’s shares held through the Board Incentive Plan Trust (3,035,102 shares as of June 30, 2026 and 3,035,102 shares as of March 31, 2026) 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, 2026 to June 30, 2026 are not subject to certified public accountant’s or audit firm’s quarterly review. - 2 -
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Three months ended June 30, 2025 Three months ended June 30, 2026 Change Amount Percent (%) Total Revenues *3 (millions of yen) 746,973 876,628 129,655 17 Total Expenses *3 (millions of yen) 627,055 742,709 115,654 18 Income from Continuing Operations before Income Taxes *3 (millions of yen) 145,666 406,150 260,484 179 Net Income Attributable to ORIX Corporation Shareholders (millions of yen) 107,288 280,832 173,544 162 Earnings Per Share (Basic) (yen) 94.63 256.07 161.44 171 (Diluted) (yen) 94.44 255.56 161.12 171 ROE (Annualized) *1 (%) 10.4 24.4 14.0 － ROA (Annualized) *2 (%) 2.53 6.20 3.67 － 1. Summary of Consolidated Financial Results (1) Financial Highlights Financial Results for the Three Months Ended June 30, 2026 *1 ROE is the ratio of Net Income Attributable to ORIX Corporation Shareholders for the period to average ORIX Corporation Shareholders’ Equity. *2 ROA is calculated based on Net Income Attributable to ORIX Corporation Shareholders. *3 As a result of the decision to sell the shares of ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”), in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations, the business of the Target has been classified as held for sale and a discontinued operation. Accordingly, Total Revenues, Total Expenses and Income from Continuing Operations before Income Taxes for the three months ended June 30, 2026 are presented on a continuing operations basis, excluding the results of the business of the Target, which has been separately presented as discontinued operations. The corresponding amounts for the three months ended June 30, 2025 have also been retrospectively reclassified to conform to the current-period presentation. For further information on the discontinued operations, see 2. Financial Information (8) Discontinued Operations Information (Unaudited). Overview of Business Performance (April 1, 2026 to June 30, 2026) Total revenues for the three months ended June 30, 2026 (hereinafter, “the first consolidated period”) increased 17% to ¥876,628 million compared to ¥746,973 million during the same period of the previous fiscal year primarily due to increases in gains on investment securities and dividends, as well as life insurance premiums and related investment income. Total expenses increased 18% to ¥742,709 million compared to ¥627,055 million during the same period of the previous fiscal year primarily due to increases in life insurance costs and selling, general and administrative expenses. Equity in net income of equity method investments increased 970% to ¥207,918 million compared to the same period of the previous fiscal year, primarily due to increased equity in net income from a certain equity method investee, and gains on sales of subsidiaries and equity method investments and liquidation losses, net increased 920% to ¥64,313 million compared to the same period of the previous fiscal year. Due to the above results, income from continuing operations before income taxes for the first consolidated period increased 179% to ¥406,150 million compared to ¥145,666 million during the same period of the previous fiscal year and net income attributable to ORIX Corporation Shareholders, including net income from discontinued operations, increased 162% to ¥280,832 million compared to ¥107,288 million during the same period of the previous fiscal year. - 3 -
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Three months ended June 30, 2025 (millions of yen) Three months ended June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Profits 52,201 289,811 237,610 455 As of March 31, 2026 (millions of yen) As of June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Assets 4,720,861 4,742,729 21,868 0 Segment Information Total segment profits for the first consolidated period increased 173% to ¥424,088 million compared to the same period of the previous fiscal year. Beginning with the current consolidated fiscal year, the Company has reorganized its reportable segments into Japan & APAC, Infrastructure, USA & Europe, and Insurance, reflecting changes in the segments used by the CODM for resource allocation and performance evaluation purposes. In connection with this change, segment information as of March 31, 2026 and for the three months ended June 30, 2025 presented below has been recast to conform to the current presentation. On April 27, 2026, the Company decided to sell all shares in ORIX Bank Corporation (hereinafter, the “Target”), a consolidated subsidiary, to Daiwa Next Bank, Ltd. As a result of this decision, the operations of the Target, which had previously been reported as continuing operations, have been classified as discontinued operations in the current fiscal year in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations. Segment information presents amounts relating only to continuing operations and excludes the discontinued operations. Comparative segment information for the previous fiscal year has also been revised to reflect this change. For further details regarding discontinued operations, please refer to Note (8), “Discontinued Operations,” under “2. Quarterly Consolidated Financial Statements and Notes.” Segment information for the fiscal year is as follows: Japan & APAC: Financial services, fee-based businesses, and corporate investment Segment profits increased 455% to ¥289,811 million compared to the same period of the previous fiscal year primarily due to an increase in equity in net income of equity method investments. This increase mainly reflected the recognition, through TB Investment Limited Partnership, an equity-method affiliate of the Company, of gains on the sale and valuation gains relating to shares of Kioxia Holdings Corporation recorded by Toshiba Corporation in the fourth quarter of the fiscal year ended March 31, 2026, as well as a gain on the sale of shares of SUGIKO GROUP HOLDINGS CO., LTD. ("SUGIKO"), a consolidated subsidiary, recognized in the first quarter of the current fiscal year. Segment assets totaled ¥4,742,729 million, remaining relatively unchanged compared to the end of the previous fiscal year, as the decrease in various assets associated with the sale of SUGIKO was offset by an increase in equity method investments resulting from the recognition of equity in net income of equity method investments through TB Investment Limited Partnership. - 4 -
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Three months ended June 30, 2025 (millions of yen) Three months ended June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Profits 68,407 43,317 (25,090) (37) As of March 31, 2026 (millions of yen) As of June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Assets 3,575,072 3,567,338 (7,734) (0) Three months ended June 30, 2025 (millions of yen) Three months ended June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Profits 10,594 63,000 52,406 495 As of March 31, 2026 (millions of yen) As of June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Assets 2,741,031 2,856,699 115,668 4 Infrastructure: Investment, development, operation, and asset management of real estate, aircraft, ships, and environmental & energy- related assets Segment profits decreased 37% to ¥43,317 million compared to the same period of the previous fiscal year primarily due to the absence of a gain on the sale of Hotel Universal Port Vita that was recognized in the first quarter of the previous fiscal year. Segment assets totaled ¥3,567,338 million, remaining relatively unchanged compared to the end of the previous fiscal year. USA & Europe: Financial services, investments, asset management, and advisory services Segment profits increased 495% to ¥63,000 million compared to the previous fiscal year primarily due to valuation gains recognized in ORIX USA's private equity investment business. Segment assets increased 4% to ¥2,856,699 million compared to the end of the previous fiscal year primarily due to an increase in installment loans at ORIX USA and the favorable impact of foreign exchange movements. - 5 -
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Three months ended June 30, 2025 (millions of yen) Three months ended June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Profits 24,063 27,960 3,897 16 As of March 31, 2026 (millions of yen) As of June 30, 2026 (millions of yen) Change Amount (millions of yen) Percent (%) Segment Assets 3,198,270 3,259,346 61,076 2 Insurance: Life insurance Segment profits increased 16% to ¥27,960 million compared to the previous fiscal year primarily due to an increase in life insurance premiums and related investment income. Segment assets increased 2% to ¥3,259,346 million compared to the end of the previous fiscal year primarily due to increases in investment in securities and reinsurance recoverables. - 6 -
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As of March 31, 2026 As of June 30, 2026 Change Amount Percent (%) Total Assets (millions of yen) 18,002,776 18,256,420 253,644 1 (Segment Assets) *3 14,235,234 14,426,112 190,878 1 Total Liabilities (millions of yen) 13,378,965 13,413,847 34,882 0 (Short-term and Long-term Debt) *3 6,343,295 6,308,802 (34,493) (1) (Deposits) *3 2,330 2,448 118 5 Shareholders’ Equity *1 (millions of yen) 4,482,500 4,710,425 227,925 5 Shareholders’ Equity Per Share *2 (yen) 4,080.24 4,312.66 232.42 6 (2) Consolidated Financial Condition Summary of Assets, Liabilities, Shareholders’ Equity *1 Shareholders’ Equity refers to total ORIX Corporation Shareholders’ Equity based on U.S. GAAP. *2 Shareholders’ Equity Per Share is calculated using total ORIX Corporation Shareholders’ Equity. *3 As a result of the decision to sell the shares of ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”), in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations, the business of the Target has been classified as held for sale and a discontinued operation. Accordingly, as a result of presenting the assets and liabilities related to the business of the Target separately as “Assets of Discontinued Operations Held for Sale” and “Liabilities of Discontinued Operations Held for Sale,” respectively, Segment Assets, Short-term and Long-term Debt and Deposits as of June 30, 2026 are presented on a continuing operations basis, excluding the balances of the discontinued operations. The corresponding balances as of March 31, 2026 have also been retrospectively reclassified to conform to the current-period presentation. For further information on the discontinued operations, see 2. Financial Information (8) Discontinued Operations Information (Unaudited). Total assets increased 1% to ¥18,256,420 million compared to the end of the previous fiscal year primarily due to increases in equity method investments, assets of discontinued operations held for sale (mainly installment loans), and installment loans, partially offset by decreases in cash and cash equivalents and property under facility operations. In addition, segment assets increased 1% to ¥14,426,112 million compared to the end of the previous fiscal year. Total liabilities were ¥13,413,847 million, relatively unchanged from the end of the previous fiscal year primarily due to increases in liabilities of discontinued operations held for sale (mainly deposits) and current and deferred income taxes, partially offset by decreases in long-term debt and other liabilities. Shareholders’ equity increased 5% to ¥4,710,425 million compared to the end of the previous fiscal year. - 7 -
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(millions of yen) As of March 31, 2026 As of June 30, 2026Assets Cash and Cash Equivalents 1,015,359 968,923 Restricted Cash 114,129 122,693 Net Investment in Leases 1,247,491 1,234,360 Installment Loans 1,488,263 1,534,403 The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2026 ¥78,020 million June 30, 2026 ¥92,664 million Allowance for Credit Losses (76,342) (67,284) Investment in Operating Leases 2,152,820 2,161,945 Investment in Securities 3,142,498 3,181,187 The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2026 ¥39,796 million June 30, 2026 ¥39,175 million The amounts which are associated to available-for-sale debt securities are as follows: March 31, 2026 Amortized Cost ¥3,230,567 million Allowance for Credit Losses ¥(3,505)million June 30, 2026 Amortized Cost ¥3,297,405 million Allowance for Credit Losses ¥(3,358)million Property under Facility Operations 779,075 746,746 Equity method investments 1,304,073 1,497,252 Trade Notes, Accounts and Other Receivable 495,080 466,570 Inventories 269,187 271,570 Office Facilities 189,279 176,686 Other Assets 2,686,462 2,699,340 The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2026 ¥1,163 million June 30, 2026 ¥578 million Assets of Discontinued Operations Held for Sale 3,195,402 3,262,029 Total Assets 18,002,776 18,256,420 Liabilities and Equity Short-term Debt 544,135 582,680 Deposits 2,330 2,448 Trade Notes, Accounts and Other Payable 354,995 325,684 Policy Liabilities and Policy Account Balances 1,943,710 1,984,095 The amounts which are measured at fair value by electing the fair value option are as follows: March 31, 2026 ¥138,027 million June 30, 2026 ¥155,186 million Current and Deferred Income Taxes 684,072 730,499 Long-term Debt 5,799,160 5,726,122 Other Liabilities 1,107,475 1,055,648 Liabilities of Discontinued Operations Held for Sale 2,943,088 3,006,671 Total Liabilities 13,378,965 13,413,847 Redeemable Noncontrolling Interests 50,743 52,356 Commitments and Contingent Liabilities Common Stock 221,111 221,111 Additional Paid-in Capital 235,239 235,898 Retained Earnings 3,502,509 3,714,666 Accumulated Other Comprehensive Income 605,110 659,866 Treasury Stock, at Cost (81,469) (121,116) Total ORIX Corporation Shareholders’ Equity 4,482,500 4,710,425 Noncontrolling Interests 90,568 79,792 Total Equity 4,573,068 4,790,217 Total Liabilities and Equity 18,002,776 18,256,420 2. Financial Information (1) Condensed Consolidated Balance Sheets (Unaudited) - 8 -
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As of March 31, 2026 As of June 30, 2026 Accumulated Other Comprehensive Income (Loss) Net unrealized gains (losses) on investment in securities (618,351) (647,246) Impact of changes in policy liability discount rate 715,382 752,261 Debt valuation adjustments 242 235 Defined benefit pension plans 31,953 41,398 Foreign currency translation adjustments 469,262 498,988 Net unrealized gains on derivative instruments 6,622 14,230 Total 605,110 659,866 Note 1: Breakdown of Accumulated Other Comprehensive Income (Loss) Note 2: As a result of the decision to sell the shares of ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”), in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations, the business of the Target has been classified as held for sale and a discontinued operation. Accordingly, the assets and liabilities related to the business of the Target are presented separately as “Assets of Discontinued Operations Held for Sale” and “Liabilities of Discontinued Operations Held for Sale,” respectively. In addition, the prior-period balances of the assets and liabilities related to the business of the Target have been retrospectively reclassified to conform to the current-period presentation. For further information on the discontinued operations, see 2. Financial Information (8) Discontinued Operations Information (Unaudited). - 9 -
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(millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenues : Finance revenues 66,221 72,591 Gains on investment securities and dividends 16,486 58,203 Operating leases 152,076 163,427 Life insurance premiums and related investment income 132,543 172,541 Sales of goods and real estate 110,952 126,917 Services income 268,695 282,949 Total Revenues 746,973 876,628 Expenses : Interest expense 41,507 44,898 Costs of operating leases 99,784 105,466 Life insurance costs 94,237 130,618 Costs of goods and real estate sold 83,302 95,174 Services expense 146,730 155,706 Other (income) and expense (1,068) 3,745 Selling, general and administrative expenses 158,188 197,821 Provision for credit losses 3,244 (538) Write-downs of long-lived assets 1,004 9,819 Write-downs of securities 127 0 Total Expenses 627,055 742,709 Operating Income 119,918 133,919 Equity in Net Income of Equity method investments 19,440 207,918 Gains on Sales of Subsidiaries and Equity method investments and Liquidation Losses, net 6,308 64,313 Income from Continuing Operations before Income Taxes 145,666 406,150 Provision for Income Taxes 43,220 125,582 Net Income from Continuing Operations 102,446 280,568 Discontinued Operations Income (Loss) from Discontinued Operations before Income Taxes 9,815 (334) Provision for Income Taxes 2,990 (4,742) Net Income from Discontinued Operations 6,825 4,408 Net Income 109,271 284,976 Net Income Attributable to the Noncontrolling Interests 1,933 5,065 Net Income (Loss) Attributable to the Redeemable Noncontrolling Interests 50 (921) Net Income Attributable to ORIX Corporation Shareholders 107,288 280,832 (2) Condensed Consolidated Statements of Income (Unaudited) Note: As a result of the decision to sell the shares of ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”), in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations, the business of the Target has been classified as held for sale and a discontinued operation. Accordingly, the results of operations of the Target are presented separately from continuing operations. The prior-period results of operations related to the business of the Target have also been retrospectively reclassified to conform to the current-period presentation. For further information on the discontinued operations, see 2. Financial Information (8) Discontinued Operations Information (Unaudited). - 10 -
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(millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net Income : 109,271 284,976 Other comprehensive income (loss), net of tax: Net change of unrealized gains (losses) on investment in securities (61,363) (28,895) Impact of changes in policy liability discount rate 143,120 36,879 Net change of debt valuation adjustments 62 (7) Net change of defined benefit pension plans 5,465 9,433 Net change of foreign currency translation adjustments (44,298) 32,193 Net change of unrealized gains (losses) on derivative instruments (7,172) 7,619 Total other comprehensive income 35,814 57,222 Comprehensive Income 145,085 342,198 Comprehensive Income Attributable to the Noncontrolling Interests 701 6,731 Comprehensive Income (Loss) Attributable to the Redeemable Noncontrolling Interests (64) (121) Comprehensive Income Attributable to ORIX Corporation Shareholders 144,448 335,588 (3) Condensed Consolidated Statements of Comprehensive Income (Unaudited) (4) Assumptions for Going Concern There is no corresponding item. (5) Significant Changes in Shareholders’ Equity There is no corresponding item. (6) Changes in Accounting Policies There are no changes in accounting policies. - 11 -
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Japan & APAC : Financial services, fee-based businesses, and corporate investment Infrastructure : Investment, development, operation, and asset management of real estate, aircraft, ships, and environmental & energy-related assets USA & Europe : Financial services, investment, asset management, and advisory services Insurance : Life insurance (7) Segment Information (Unaudited) The Group CEO, as the Chief Operating Decision Maker (“CODM”), regularly allocates management resources and assesses segment performance by using the amount equivalent to income before income taxes attributable to ORIX Corporation Shareholders of each business segment. Beginning with the current consolidated fiscal year, the Company has reorganized its reportable segments into Japan & APAC, Infrastructure, USA & Europe, and Insurance, reflecting changes in the segments used by the CODM for resource allocation and performance evaluation purposes. In connection with this change, segment information for the previous fiscal year has been recast to conform to the current presentation. An overview of the operations for each of the four operating segments follows below. The accounting policies of the segments are almost the same as accounting policies for condensed consolidated financial statements except for the treatment of income tax expenses, net income attributable to noncontrolling interests, and net income attributable to redeemable noncontrolling interests. The CODM evaluates segment performance based on the amount equivalent to income before income taxes attributable to ORIX Corporation Shareholders. Therefore, net income attributable to noncontrolling interests, net income attributable to redeemable noncontrolling interests, and income tax expenses are not included in segment profit or loss. Most of selling, general and administrative expenses, including compensation costs that are directly related to the revenue generating activities of each segment and excluding the expenses that should be borne by ORIX Group as a whole, have been accumulated by and charged to each segment. Gains and losses that management does not consider for evaluating the performance of the segments, such as certain interest expenses and certain foreign exchange gains or losses (included in other (income) and expense) are excluded from the segment profits or losses, and are regarded as corporate items. Assets attributed to each segment are total assets except for certain cash and head office assets. Effective from the current fiscal year, the Company has revised the method of allocating interest expense for certain transactions. Accordingly, segment figures for the previous fiscal year have been recast to conform to the current presentation. On April 27, 2026, the Company decided to sell all shares in ORIX Bank Corporation (hereinafter, the “Target”), a consolidated subsidiary, to Daiwa Next Bank, Ltd. As a result of this decision, the operations of the Target, which had previously been reported as continuing operations, have been classified as discontinued operations in the current fiscal year in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations. Segment information presents amounts relating only to continuing operations and excludes the discontinued operations. Comparative segment information for the previous fiscal year has also been revised to reflect this change. For further details regarding discontinued operations, please refer to Note (8), “Discontinued Operations,” under “2. Quarterly Consolidated Financial Statements and Notes.” - 12 -
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Millions of yen Three months ended June 30, 2025 Japan & APAC Infrastructure USA & Europe Insurance Total Finance revenues 38,426 2,558 25,511 38 66,533 Gains on investment securities and dividends 2,069 5,428 9,014 0 16,511 Operating leases 115,365 37,684 436 0 153,485 Life insurance premiums and related investment income 0 0 0 133,086 133,086 Sales of goods and real estate 65,224 44,468 187 0 109,879 Services income 51,408 147,761 68,440 0 267,609 Total Segment Revenues 272,492 237,899 103,588 133,124 747,103 Interest expense 13,325 10,458 11,878 127 35,788 Costs of operating leases 80,436 19,740 550 0 100,726 Life insurance costs 0 0 0 94,395 94,395 Costs of goods and real estate sold 45,773 36,862 87 0 82,722 Services expense 31,165 99,012 16,812 0 146,989 Other (income) and expense * 1,786 (5,268) 2,259 (4) (1,227) Selling, general and administrative expenses 56,927 22,110 57,496 14,563 151,096 Provision for credit losses, and write-downs of long-lived assets and securities 2,818 30 1,547 (20) 4,375 Total Segment Expenses 232,230 182,944 90,629 109,061 614,864 Equity in Net income (Loss) of equity method investments and others 11,939 13,452 (2,365) (0) 23,026 Segment Profits 52,201 68,407 10,594 24,063 155,265 Significant non-cash items: Depreciation and amortization 68,637 21,363 2,305 7,812 100,117 Increase in policy liabilities and policy account balances 0 0 0 83,836 83,836 Expenditures for long-lived assets 108,758 106,104 902 11 215,775 Millions of yen Three months ended June 30, 2026 Japan & APAC Infrastructure USA & Europe Insurance Total Finance revenues 39,462 7,660 26,196 36 73,354 Gains on investment securities and dividends (1,571) 249 59,637 0 58,315 Operating leases 122,625 41,068 1,138 0 164,831 Life insurance premiums and related investment income 0 0 0 173,086 173,086 Sales of goods and real estate 84,642 40,562 835 0 126,039 Services income 65,228 113,346 102,115 0 280,689 Total Segment Revenues 310,386 202,885 189,921 173,122 876,314 Interest expense 15,705 10,225 14,338 112 40,380 Costs of operating leases 85,855 19,466 1,193 0 106,514 Life insurance costs 0 0 0 130,686 130,686 Costs of goods and real estate sold 62,414 31,876 407 0 94,697 Services expense 43,162 89,922 21,940 0 155,024 Other (income) and expense * 5,839 (4,010) 2,454 0 4,283 Selling, general and administrative expenses 63,381 24,155 86,377 14,390 188,303 Provision for credit losses, and write-downs of long-lived assets and securities 777 56 (1,143) (26) (336) Total Segment Expenses 277,133 171,690 125,566 145,162 719,551 Equity in Net income (Loss) of equity method investments and others 256,558 12,122 (1,355) (0) 267,325 Segment Profits 289,811 43,317 63,000 27,960 424,088 Significant non-cash items: Depreciation and amortization 75,599 21,231 3,220 5,339 105,389 Increase in policy liabilities and policy account balances 0 0 0 89,110 89,110 Expenditures for long-lived assets 119,241 58,269 4,821 70 182,401 Segment information for the three months ended June 30, 2025 and three months ended June 30, 2026 is as follows: * Other (income) and expense includes items such as expenses of taxes and insurance premiums related to finance leases, impairment of goodwill and intangible assets, gains and losses on derivatives, and foreign exchange gains and losses. * Other (income) and expense includes items such as expenses of taxes and insurance premiums related to finance leases, impairment of goodwill and intangible assets, gains and losses on derivatives, and foreign exchange gains and losses. - 13 -
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Millions of yen As of March 31, 2026 Japan & APAC Infrastructure USA & Europe Insurance Total Net investment in leases 1,194,048 52,913 433 0 1,247,394 Installment loans 680,872 35,097 757,103 15,191 1,488,263 Investment in operating leases 1,118,843 976,673 39,605 25,457 2,160,578 Investment in securities 80,956 154,105 618,885 2,288,116 3,142,062 Property under facility operations and servicing assets 119,002 656,847 82,749 0 858,598 Inventories 45,020 223,164 699 0 268,883 Advances for finance lease and operating lease 11,317 78,924 0 0 90,241 Equity method investments 457,931 685,773 71,582 46,002 1,261,288 Advances for property under facility operations 4,001 123,899 0 0 127,900 Goodwill, intangible assets acquired in business combinations 384,231 221,750 690,949 4,452 1,301,382 Other assets * 624,640 365,927 479,026 819,052 2,288,645 Segment Assets 4,720,861 3,575,072 2,741,031 3,198,270 14,235,234 Millions of yen As of June 30, 2026 Japan & APAC Infrastructure USA & Europe Insurance Total Net investment in leases 1,195,852 38,066 427 0 1,234,345 Installment loans 666,718 36,032 815,710 15,942 1,534,402 Investment in operating leases 1,094,947 1,001,215 47,888 25,465 2,169,515 Investment in securities 74,888 157,938 613,298 2,334,336 3,180,460 Property under facility operations and servicing assets 88,449 652,466 86,126 0 827,041 Inventories 44,893 225,494 833 0 271,220 Advances for finance lease and operating lease 16,310 62,440 475 0 79,225 Equity method investments 613,377 716,723 78,689 46,648 1,455,437 Advances for property under facility operations 915 127,002 0 0 127,917 Goodwill, intangible assets acquired in business combinations 367,787 210,618 697,318 4,452 1,280,175 Other assets * 578,593 339,344 515,935 832,503 2,266,375 Segment Assets 4,742,729 3,567,338 2,856,699 3,259,346 14,426,112 Segment information as of March 31, 2026 and June 30, 2026 is as follows: * Other assets include cash and cash equivalents, restricted cash, allowance for credit losses, trade notes, accounts and other receivables, office facilities, loans to ORIX and its subsidiaries, and reinsurance recoverables. * Other assets include cash and cash equivalents, restricted cash, allowance for credit losses, trade notes, accounts and other receivables, office facilities, loans to ORIX and its subsidiaries, and reinsurance recoverables. - 14 -
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Millions of yen Three months ended June 30, 2025 Three months ended June 30, 2026 Segment revenues: Total revenues for segments 747,103 876,314 Revenues related to corporate assets 18,376 21,540 Revenues from inter-segment transactions (18,506) (21,226) Total consolidated revenues 746,973 876,628 Segment profits: Total profits for segments 155,265 424,088 Corporate profits (losses) (11,843) (22,575) Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests 2,244 4,637 Total consolidated income from continuing operations before income taxes 145,666 406,150 The reconciliation of segment totals to the condensed consolidated financial statement amounts is as follows: - 15 -
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(millions of yen) As of March 31, 2026 As of June 30, 2026Assets Cash and Cash Equivalents 319,586 318,612 Restricted Cash 2,025 1,991 Installment Loans 2,685,320 2,763,403 Allowance for Credit Losses (3,852) (3,965) Investment in Operating Leases 0 0 Investment in Securities 166,331 155,952 Equity method investments 2,239 2,180 Trade Notes, Accounts and Other Receivable 826 879 Office Facilities 13,890 6,970 Other Assets 9,037 16,007 Total Assets of Discontinued Operations Held for Sale 3,195,402 3,262,029 Liabilities Short-term Debt 28,100 56,100 Deposits 2,623,225 2,666,451 Trade Notes, Accounts and Other Payable 1,013 1,430 Current and Deferred Income Taxes 3,712 2,796 Long-term Debt 166,600 156,451 Other Liabilities 120,438 123,443 Total Liabilities of Discontinued Operations Held for Sale 2,943,088 3,006,671 (8) Discontinued Operations Information (Unaudited) On April 27, 2026, the Company entered into a share transfer agreement with Daiwa Next Bank, Ltd. to sell all shares in ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”). Pursuant to this agreement, the sale of the shares was completed on August 3, 2026. As a result, starting from the second quarter of the current fiscal year, the Target will be excluded from the Company’s scope of consolidation. As a result of the decision to sell the shares, in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations, the business of the Target has been classified as held for sale and a discontinued operation. Accordingly, in the condensed consolidated balance sheets, the assets and liabilities related to the business of the Target are presented separately as “Assets of Discontinued Operations Held for Sale” and “Liabilities of Discontinued Operations Held for Sale,” respectively. In addition, the prior-period balances of the assets and liabilities related to the business of the Target have been retrospectively reclassified to conform to the current-period presentation. Furthermore, in the condensed consolidated statements of income, the results of operations of the Target are presented separately from continuing operations. The prior-period results of operations related to the business of the Target have also been retrospectively reclassified to conform to the current-period presentation. No loss was recognized upon classification as held for sale for the three months ended June 30, 2026. The following table presents the classes of assets and liabilities of discontinued operations classified as held for sale as of March 31, 2026 and June 30, 2026. - 16 -
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(millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Revenues : Finance revenues 21,017 20,174 Gains (Losses) on investment securities and dividends 30 (18) Services income 621 620 Total Revenues 21,668 20,776 Expenses : Interest expense 3,855 6,014 Services expense 1,940 2,002 Other (income) and expense 57 (3) Selling, general and administrative expenses 5,865 6,087 Provision for credit losses 119 107 Write-downs of long-lived assets 0 6,827 Total Expenses 11,836 21,034 Operating Income (Loss) 9,832 (258) Equity in Net Income (Loss) of Equity method investments (17) (76) Income (Loss) from Discontinued Operations before Income Taxes 9,815 (334) Provision for Income Taxes 2,990 (4,742) Net Income from Discontinued Operations 6,825 4,408 The following table presents the classes of net income from discontinued operations for the three months ended June 30, 2025 and 2026. (9) Cash flow information (Unaudited) ORIX Group does not prepare the consolidated statements of cash flows for the three months ended June 30, 2026. Depreciation and amortization for the three months ended June 30, 2025 and 2026 were ¥101,250 million and ¥106,400 million, respectively. Note: As a result of the decision to sell the shares of ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”), in accordance with ASC 205-20, Presentation of Financial Statements—Discontinued Operations, the business of the Target has been classified as held for sale and a discontinued operation. Accordingly, as a result of presenting the results of the business of the Target separately from continuing operations, depreciation and amortization for the three months ended June 30, 2026 are presented on a continuing operations basis, excluding the results of the discontinued operations. The corresponding amounts for the three months ended June 30, 2025 have also been retrospectively reclassified to conform to the current-period presentation. For further information on the discontinued operations, see 2. Financial Information (8) Discontinued Operations Information (Unaudited). (10) Subsequent Events On April 27, 2026, the Company entered into a share transfer agreement with Daiwa Next Bank, Ltd. to sell all shares in ORIX Bank Corporation, a consolidated subsidiary of the Company (hereinafter, the “Target”). Pursuant to this agreement, the sale of the shares was completed on August 3, 2026. As a result, starting from the second quarter of the current fiscal year, the Target will be excluded from the Company’s scope of consolidation, and the Company expects to record a gain in connection with the sale in the consolidated financial statements. - 17 -