ORIX(US:IX)2025-02-13 01:11Financial Data and Key Metrics Changes - Net income for Q3 was JPY 88.8 billion, with a cumulative total of JPY 271.8 billion for the nine months ending December 2024, representing a 24% year-over-year increase and an annualized ROE of 9% [9][14][12] - The company is on track to achieve a full-year net income target of JPY 390 billion, with a progress rate of 70% towards this goal [9][14] Business Line Data and Key Metrics Changes - Finance segment profit decreased by 3% year-over-year to JPY 137.1 billion, with a progress rate of 69% towards the full-year forecast [16] - Operations segment income increased by 2% year-over-year to JPY 161.4 billion, with a progress rate of 67% [18] - Investments segment income surged by 86% year-over-year to JPY 129 billion, with a progress rate of 69% [19] Market Data and Key Metrics Changes - The Finance category is expected to maintain stable earnings despite regional policy differences, while the Operations category benefits from strong airport concessions and asset management growth [20] - The Investment category aims to enhance profitability through capital recycling, with significant gains expected from divestments [22] Company Strategy and Development Direction - The company plans to continue promoting capital recycling and asset management globally to strengthen its balance sheet and enhance profitability [54] - The new COO emphasizes providing essential solutions to societal issues and maximizing business opportunities across diversified segments [52][53] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic outlook, particularly in Japan, due to rising interest rates and inflation concerns [44][46] - The company expects to leverage its diversified portfolio to navigate uncertainties and pursue new investments while promoting exits [51] Other Important Information - The company completed JPY 50 billion in share repurchases, adhering to its policy of limiting treasury stock holdings [12][13] - The divestment of Greenko is anticipated to significantly impact the company's profit achievement for the fiscal year [84][86] Q&A Session Summary Question: Future expectations for ORIX USA and weak credit profit - Management indicated that improvements in credit-related businesses are underway, with a focus on enhancing sales and marketing capabilities [58][60][62] Question: Midterm plan ROE target and share buyback strategy - Discussions on the midterm plan are ongoing, with a focus on achieving an ROE target of 11% or higher, leveraging share buybacks as a growth driver [70][76][78] Question: Impact of Greenko divestment on annual plan - Management expressed confidence in executing the Greenko sale by the end of the fiscal year, but acknowledged potential impacts on profit if not completed [82][84] Question: Profitability outlook for the Finance business in Japan - Management noted that rising interest rates are positively impacting asset management yields, supporting stable profits in the Finance segment [90][91]