ORIX organizes its businesses into six segments to facilitate strategy formulation,
resource allocation and portfolio balancing at the segment level. These six
business segments are: Corporate Financial Services, Maintenance Leasing, Real
Estate, Investment and Operation, Retail and Overseas Business. Management believes
that organizing our business into large, strategic units allows us to maximize
our corporate value by identifying and cultivating strategic advantages vis-à-vis
anticipated competitors in each area and by helping ORIX Group achieve competitive
advantage.
An overview of operations, operating environment and operating strategy for
each of the six segments follows.
Corporate Financial Services Segment
Overview of Operation
Operating through a nationwide network, ORIX provides leasing and loans and
other products and services to its core customer base of domestic small and
medium-sized enterprises (“SMEs”). The Corporate Financial Services
segment functions as the central point of contact for the entire ORIX Group
by gathering information on customers and products/services and responding to
customer needs, including in connection with business succession and overseas
expansion.
This segment has its origin in the leasing business developed at the time of
ORIX’s establishment in 1964. Even today, this segment serves as the foundation
for the entire ORIX Group’s sales activities.
This segment promotes consolidated management by target sharing with other business
segments and Group companies, both domestic and foreign. In this way, this segment
creates cross-functional tie ups with Group customers in order to swiftly provide
wide-ranging services backed by expertise.
Maintenance Leasing Segment
Overview of Operation
The Maintenance Leasing segment consists of ORIX’s automobile and rental
operations, both of which possess a high level of expertise.
In its automobile leasing business, ORIX engages in leasing, automobile rental
and car sharing businesses. Automobile leasing operations began by offering
leases including maintenance to corporate clients. Today, the segment’s
services include a complete range of vehicle maintenance outsourcing services
requiring high-level expertise that encompasses solutions that meet clients’
compliance, environmental and safety management needs. This segment also offers
a broad spectrum of tailor-made services that address both corporate and individual
client needs.
Having initially specialized in precision measuring equipment rentals for corporate
customers, the rental business has greatly expanded the range of products it
offers and currently includes IT-related equipment and medical equipment, environmental
analysis equipment as well as tablet computers. The rental business also offers
a diverse range of services such as technical support, sales of software packages,
equipment calibration and asset management.
Real Estate Segment
Overview of Operation
The Real Estate segment is mainly comprised of the real estate development,
rental business, the facilities operating business and real estate investment
advisory business.
In the real estate development and rental business, ORIX Group is involved not
only in developing and leasing properties such as office buildings, commercial
properties, logistics centers and residences but also in asset management and
real estate finance, where ORIX Group has high level of expertise.
The facilities operations business handles hotels, Japanese inns, aquariums,
golf courses, training facilities, senior housings, baseball stadiums, and theaters.
Investment and Operation Segment
Overview of Operation
In the Investment and Operation business segment, ORIX is engaged in three core
business activities: environment and energy-related business, principal investments
and loan servicing.
For more than ten years, ORIX has been actively involved in the environment
and energy-related business through the collection and disposal of waste generated
from end-of-lease assets. In fiscal 2016, we made decision to invest in a large
scale wind power project in India, with the infrastructure development and investment
company “INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITED”
to further strengthen energy-related business in Asia.
The principal investment business invests in private equity both in Japan and
overseas and capitalizes on the expertise and collective strength of the Group
to increase the corporate value of investees.
The loan servicing business invests in non-performing loans and engages in joint
operations of business rehabilitation support companies through capital alliances
with financial institutions.
In addition, in April 2016 we commenced operation of the Kansai and Osaka International
Airport as a concession business.
Retail Segment
The Retail business segment consists of life insurance business, banking business
and card loan business.
ORIX Life Insurance was founded in 1991 and operates mainly through agencies
and mail order sales. On July 1, 2014, ORIX Life Insurance Corporation (“ORIX
Life Insurance”) acquired HLIKK, and the two companies merged on July
1, 2015. Regarding the banking business, ORIX Bank Corporation (“ORIX
Bank”) inherited the housing loan business ORIX began handling in 1980
and is now involved in corporate lending and other services. ORIX Bank began
card loan operations in March 2012.
ORIX Credit is a card loan provider established in 1979. For approximately three
years from July 2009, ORIX Credit was managed as a joint venture with Sumitomo
Mitsui Banking Corporation before being re-consolidated as a wholly owned subsidiary
of ORIX Group following the purchase of all of ORIX Credit’s shares in
June 2012.
Overseas Business Segment
In the Overseas Business segment, in the United States, asset management is
at the heart of efforts to expand non-finance business boasting a high level
of expertise in the fields of corporate finance, securities investment, M&A
advisory, loan origination and servicing and also fund management.
Since first expanding into Hong Kong in 1971, ORIX Group has established an
overseas network spanning 544 bases in 36 countries and regions. Underpinned
by a leasing, automobile leasing and corporate finance operating base that is
aligned with the conditions of each country, the Overseas Business segment engages
in real estate-related investments, principal investment and non-performing
loan investment activities, as well as aircraft and shipping businesses that
includes leasing, management, investment, intermediary and sales activities.
Furthermore, the Overseas Business segment conducts asset management operations
for individual and corporate clients through Robeco, a Dutch asset manager that
became a consolidated subsidiary of ORIX Group in July 2013. In 2014, ORIX launched
a private equity fund with Robeco and the Asian Development Bank for the purpose
of investing in environment and energy-related projects and low-carbon projects
in Asia. We are steadily pursuing collaboration within the Group to expand this
business.