Bank of America Merrill Lynch2016 Japan Conference
ORIX’s Concession Business
ORIX Corporation
Shuji Irie
Corporate Senior Vice President
Head of Investment and Operation Headquarters
Responsible for Concession Business Development Department
September 15, 2016
Copyright © 2016 ORIX Corporation(TSE:
All rights
reserved.
8591;
NYSE:
IX)
Table of Contents
1. Concession Business
2. About the Kansai Airports Project (KAP)
3. Post-KAP Strategy
Appendix
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1
1. Concession Business
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2
Positioning of Concession PFI among other PPP
Overview of PPP/PFI
PPP(Public Private Partnership)
Utilize private sector’s creativity and improve administrative
efficiency through public private partnership in the construction,
maintenance, and operation of public facilities
PFI(Private Finance Initiative)
A method, based on the PFI Act, of utilizing financing,
management/operation, and technical capability from the private
sector in the construction, maintenance, and operation of public
facilities.
Type I
PFI business under the “Right to Operate
Public Facility etc.” system
（Concession PFI）
Type II
Type III
Revenue generating business
Other PPP/PFI business
（Expansion or operation of existing
revenue-generating facilities to collect
initial investment outlay）
①Service sold to public sector
②Comprehensive BPO
Type IV
Utilize existing public real estate business
Source: Action Plan 2016.5 (Cabinet Office, Government of Japan)
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3
PFI until 2012 vs. Current PFI
PFI until 2012
Current PFI
¥4.1 tn/418 projects between
FY1999-2012
Scale
Targeting ¥21 tn for the 10 years
between FY2013-2023
Central government/Municipality
determines project plan
Planning Body
Business proposal initiated by private
sector is possible
Mostly educational facilities,
government buildings,
accommodation facilities for
government workers
Subject
Including infrastructure assets
80% were “services sold to the public
sector”
PPP Scheme
Implementation of the concession PFI,
expansion of financially free-standing
projects
Reliant on creditability of
government body
Funding Scheme
Investors can take part of the risk
depending on the project
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4
Recent History and Background of Concession PFI
2011 Revision of PFI
Act
 As a measure to revamp public infrastructures, to further utilize
capital in the private sector, the concession method was made
possible in the revised PFI Act
2013 New PFI Target
 Target to implement PPP/PFI projects totaling ¥12 tn (of which ¥23 tn are concession PFI) was stated in the Japan Revitalization
Strategy for the 10 year period up to 2022
 October, established PFI promotion office
2015 May
Target Schedule
Accelerated
 In a joint meeting of Council on Economic and Fiscal Policy Council and
Industrial Competitiveness Council, it was resolved to accelerate the
implementation of PFI projects over a three-year intensive implementation
period running to the end of FY2017)
 A number of projects under key focus area were stated: 6 airports, 6 water
systems, 6 sewerages, 1 toll road
2016 May
New Target
 3 educational facilities and 6 public housing facilities were added in the
focus area
 Ten year target increased from ¥10-12 tn to ¥21 tn
（of which, Concession ¥7 tn, Revenue generating business ¥5 tn, Utilize
existing public real estate ¥4 tn, Other PFI projects ¥5 tn）
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5
２. About the Kansai Airports Project (KAP)
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6
Overview
Consistent with its commitment to
serving as a familiar, dynamic urban
airport, ITM provides travelers with
valuable experiences imbued with
convenience and hospitality.
KIX continues to work around the clock with
enthusiasm to handle the endless flow of
people and goods to earn the trust,
affection and respect of our customers and
contribute to the development of the
Japanese economy and society.
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7
Potential of KIX/ITM and Kansai
 ORIX and Vinci Airports believe in the potential of these airports, and in the
region
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8
Overview of Structure
（Consortium）
Japanese Government
100%
66.5%
KIALC
Land
ORIX
NKIAC
Subsidiaries’
share,
Movables
Consideration
for operating
right
Investment and
finance
Return
performance
guarantee
deposit
Itami
Facilities
(Land&
Facilities)
transfer to
Concessionaire
VINCI Airports
Other
Shareholders
Dividends,
interests
Kansai
Airports
Finance
Operating rights->Concessionaire
Operation area
Repayment
Lender
Railway(NKIAC)
<Structure>
 Term: April 1 , 2016 - March 31, 2060 (44 years)
 NKIAC ・KIALC (owner of land) continue to own land and facilities and grant operating right to concessionaire
 Engage in the operation of both Aviation and non-aviation related business
 The aviation control business, customs , immigration control and quarantine business and railway business are
outside the scope of the business of the Concessionaire.
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9
The Best Team for the Future
• Know-how and experience in
finance and real estate business
• Brings demonstrated airport
operation expertise
• Kansai origins, footprint, solid
business network
• International network
• Strong Commitment to the region
• Entrepreneurial spirit
• Agile, flexible business style
• Committed to the region
• Entrepreneurial spirit
• Agile, flexible business style
• Similar mindset to ORIX
• Similar mindset to VINCI Airports
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10
Action Towards becoming ASIA’s leading airport
 Traffic and revenue targets
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11
3. Post-KAP Strategy
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12
Major Concession PFI Projects and Candidates
Wakkanai airport
Kansai airports
（Concessionaire: ORIX consortium）
（Osaka Int. Airport: 14.54 mn passengers in 2015)
（Kansai Int. Airport: 23.21 mn passengers in 2015)
・・・Projects where bidding process
has finished
Asahikawa airport
New Chitose airport
Memanbetsu airport
Hakodate airport
Water supply/sewage (Otsu)
Aomori airport
Tajima airport
Kobe airport
Hiroshima airport
Kushiro airport
Obihiro airport
Sendai airport
(Concessionaire: Tokyu consortium）
(No. of passengers in 2015: 3.15 mn）
Aichi prefecture toll road
（Maeda consortium granted with
preferred negotiation right）
Concession starts: October 2016
Shizuoka airport
Fukuoka airport
Sewage(Hamamatsu)
Takamatsu airport
Water supply/sewage (Osaka)
Nanki Shirahama airport
Annual Passengers in
mn (2015)
Concession
Starts
Takamatsu
1.81
April 2018
Kobe
2.45
Spring 2018
Fukuoka
20.97
April 2019
Hiroshima
2.67
(2019)
Hiroshima Airport Revitalization Meetings, which started in December 2015, have been discussing on the topic
of utilizing concession PFI
20.46
（25.62）
April 2020
Implementation policy to be announced in summer 2018. The concession is expected to include all 7 airports
in Hokkaido (New Chitose, Kushiro, Wakanai, Hakodate, Asahikawa, Obihiro, Memanbetsu)
Airports
New Chitose
（incl. 7 airports in
Hokkaido)
Current Status
Implementation policy announced in July, and application guideline for bidders announced in September
Implementation policy and application guideline for bidders to be announced in September and October 2016
respectively
Implementation policy to be announced between March and April 2017
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13
Other Candidate Projects in the Concession PFI Market
Airport
Market Scale
Toll Road
Water System/Sewage
Op. Revenues ¥450.6 bn
Op. Profits ¥10.3bn
Op. Revenues ¥238.3 bn
EBITDA ¥135.7 bn
Op. Revenues ¥4,281.3 bn
Net Income ¥315.2 bn
*FY2014 figures
*Aggregate of 27 airports
operated by the government
*FY2014 figures
*Aggregate of 33 regional toll
road companies
*FY2014 figures
*Aggregate of public water system
operators including 1348 water
suppliers, 749 simple water suppliers,
and 591 sewage operators
FY2016
Bidding to start (Takamatsu)
Schedule
Main CF factors
After FY2017
(Kobe, New Chitose, Fukuoka,
Hiroshima, and others)
Air transportation demand,
commercial facilities
Educational Facility
Museum（and quasi-ones）
4,246
Public sports facility
27,469
Cultural hall
1,742
Others
20,347
FY2016
Bidding to start (Aichi)
FY2016
Bidding to start (Hamamatsu/Sewage)
FY2016
Discussion points to be
reviewed by Ministry of
education, culture, sports,
science, and technology.
Major highway
demand/development
Regional demand (correlates with
population)
Regional demand
Potential
Commercial
Upside
◎
△
×
○
（facility type dependent）
Main Risks
Regional/national economic
condition, FX, plague, political
risks..etc
Regional economic condition
and competition from other
transportation alternatives
Shrinking population
Regional economic
condition
Project Sponsors
(Presumption)
Trading companies, railway
companies, regional business
circles, real estate
developers…etc.
Railway companies,
Construction
companies/consultants
Water engineering companies, trading
companies, municipalities
Sports/Leisure related
companies, house builders
Note: Ports are also potential concession PFI candidates
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14
ORIX’s Concession Business Important Position in the Group
ORIX leverages its operational know-how to evolve, diversify and adapt its
portfolio to take advantage of changing macroeconomic conditions
Credit
Screening and
Finance Capability
Banking
Asset Management
Investment Banking
Life Insurance
Investment
Leasing
Lending
Leasing
Servicer
Real Estate
Concession Business
Automobiles
Environment/Energy
Ships/Aircraft
Expertise in
Handling
Tangible Assets
1964
2014 Real Estate Business Division appointed a team
to study about the Concession Business
2015 Concession Business Development Department
was established
2016
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15
ORIX’s Concession Business Future Outlook
 PPP/PFI, including concession PFI, is one of the important policies under the
government’s current effort in its Integrated Economic and Fiscal Reforms
 ORIX Group intends to take an proactive part in the concession PFI and other various
PPP/PFI opportunities
For fields that require specialized technical
expertise, we accumulate internal knowhow through alliance with other firms, and
strengthen our own capability
Group-wide cooperation
Non-airport
projects
(ORIX business units including
Real estate, Investment and
Operation, and Environment
and Energy)
Partner
Secure multiple
airport operations
Kansai/Osaka
Airports
Projects
abroad
Overseas expansion
upon accumulation of
domestic track records
Secure track records in
Japan, accumulate business
know-how/expertise, and
strengthen human capital
Solidify Business Platform
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16
Appendix
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17
About ORIX
Proven Track Record of Profitability
 ORIX has maintained profitability for the past 51 consecutive years
Net Income Attributable to ORIX Corporation Shareholders
FY2016.3
Record Net Income
JPY Bn
FY2009.3
Collapse of Lehman
Brothers
300
250
FY2002.3
Bursting of the IT
Bubble
FY1998.3
Asian Financial Crisis
200
150
FY1993.3
Bursting of the
Economic Bubble
100
50
0
1964
1975
1980
1985
1990
1995
2000
2005
2010
2015
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18
About ORIX
Assets by Segment
 Our highly diversified company contains many complementary businesses,
providing ample opportunity for synergies and knowledge sharing
Corporate Financial Services
Lending, Leasing, fee businesses
Overseas Business
Leasing, Lending, Investment
in bonds, Asset management,
Ship/Aircraft-related
operations
24%
12%
8%
Segment Assets
Approx. 8.6Tn yen
（As of 2016.6.30)
Retail
8%
8%
Maintenance Leasing
Automobile leasing and rentals,
Car sharing, Test and measurement
instruments and IT-related
equipment rentals and leasing
Real Estate
40%
Life insurance, Banking,
Card loan business
Investment and Operation
Real estate development/rental/
facility operation, REIT asset
management, and real estate
investment and advisory services
Environment and energy-related business, Principal
investment and Loan servicing (asset recovery),
Concession business
Copyright © 2016 ORIX Corporation All rights reserved.
19
Disclaimer

These materials have been prepared by ORIX Corporation (“ORIX” or the “Company”) solely for your information and are subject to change
without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No
representations, warranties or undertakings, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or
completeness, or correctness of the information or the opinions presented or contained in these materials.

These materials contain forward-looking statements that reflect the Company’s intent, belief and current expectations about future events and
financial results. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or
words of similar meaning. These forward-looking statements are not guarantees of future performance. They are based on a number of
assumptions about the Company’s operations and are subject to risks, uncertainties and other factors beyond the Company’s control.
Accordingly, actual results may differ materially from these forward-looking statements. Factors that could cause such differences 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 and under “Business Risk” of the securities report (yukashouken houkokusho) filed with the Director of the Kanto
Local Finance Bureau.

Some of the financial information in these materials is unaudited.

The Company believes that it will be considered a “passive foreign investment company” for United States Federal income tax purpose in the
year to which these consolidated financial results relate and for the foreseeable future by reason of the composition of its assets and the nature
of its income. A U.S. holder of the shares or ADSs of the Company is therefore 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.

Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument,
including securities issued by the Company or any affiliate thereof.
Copyright © 2016 ORIX Corporation All rights reserved.
20
For annual and more historical data please
access our website. A list of major disclosure
materials is given below.
ORIX Website
http://www.orix.co.jp/grp/en/
IR Website
http://www.orix.co.jp/grp/en/ir/
ORIX Corporation
Corporate Planning Department
World Trade Center Building., 2-4-1,
Hamamatsu-cho, Minato-ku,
Tokyo 105-6135, Japan
Tel: +81-3-3435-3121
Fax: +81-3-3435-3154
[email protected]
Copyright © 2016 ORIX Corporation All rights reserved.