Edgar Filing: ORIX CORP

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Orix Corporation

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE Act of 1934

For the month of August, 2003.

ORIX Corporation
(Translation of Registrant’s Name into English)

3-22-8 Shiba, Minato-Ku, Tokyo, JAPAN
(Address of Principal Executive Offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)


Form 20-F x		Form 40-F o

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)


Yes o		No x

TABLE OF CONTENTS


Table of Documents Filed
SIGNATURES
Summary of Consolidated Financial Results

Table of Documents Filed


1.		ORIX’s First Quarter Consolidated Financial Results (April 1, 2003 – June 30, 2003) filed with the Tokyo Stock Exchange on Wednesday, July 30, 2003.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	ORIX Corporation


Date: August 4, 2003	By	/s/ Masaru Hattori Masaru Hattori Corporate Senior Vice President Head of the Accounting Department ORIX Corporation

Consolidated Financial Results
April 1, 2003 — June 30, 2003

July 30, 2003

In preparing its consolidated financial information, ORIX Corporation and its subsidiaries have complied with accounting principles generally accepted in the United States of America, except as modified to account for stock splits in accordance with the usual practice in Japan.

U.S. Dollar amounts have been calculated at Yen 119.80 to $1.00, the approximate exchange rate prevailing at June 30, 2003.

These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our 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 annual report on Form 20-F filed with the United States Securities and Exchange Commission.

The Company expects that it will be a “passive foreign investment company” under the U.S. Internal Revenue Code. A U.S. holder of the shares of the Company is therefore subject to special rules of taxation in respect of certain dividend, gain or other income on such shares. 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:
	Corporate Communications ORIX Corporation 3-22-8 Shiba, Minato-ku, Tokyo 105-8683 JAPAN Tel: (03) 5419-5102 Fax: (03) 5419-5901 E-mail: leslie_hoy@orix.co.jp

Consolidated Financial Results from April 1, 2003 to June 30, 2003
(U.S. GAAP Financial Information for ORIX Corporation and its Subsidiaries)


Corporate Name:		ORIX Corporation
Listed Exchanges:		Tokyo Stock Exchange (Securities No. 8591) Osaka Securities Exchange Nagoya Stock Exchange New York Stock Exchange (Trading Symbol: IX)
Head Office:		Tokyo JAPAN Tel: (03)5419-5102 (URL http://www.orix.co.jp/ir_e/ir_index.htm)

1.		Performance Highlights for the Three Months Ended June 30, 2003 and 2002, and the Year Ended March 31, 2003

(1)		Performance Highlights — Operating Results (Unaudited)


	*(millions of JPY)1**

	Total		Year-on-Year			Operating		Year-on-Year			Income before		Year-on-Year
	Revenues		Change			Income		Change			*Income Taxes2**		Change

June 30, 2003		170,917		6.2	%		22,536		(8.8	%)		25,920		(1.5	%)
June 30, 2002		160,957		(10.3	%)		24,699		12.7	%		26,322		25.1	%
March 31, 2003		683,645		—			38,083		—			46,288		—


	Net		Year-on-Year			Basic		Diluted
	Income		Change			Earnings Per Share		Earnings Per Share

June 30, 2003		14,098		(16.5	%)		168.45		158.71
June 30, 2002		16,885		61.7	%		201.85		189.95
March 31, 2003		30,243		—			361.44		340.95


1.	Equity in Net Income of Affiliates was a net gain of JPY 3,384 million for the three months ended June 30, 2003, a net gain of JPY 1,623 million for the three months ended June 30, 2002 and a net gain of JPY 6,203 million for the year ended March 31, 2003.
2.	The average number of shares was 83,692,403 for the three months ended June 30, 2003, 83,649,183 for the three months ended June 30, 2002 and 83,672,434 for the year ended March 31, 2003.
3.	Changes in Accounting Principles	Yes (x) No ( ) (new accounting adoption)
4.	Changes in Numbers of Consolidated Subsidiaries and Affiliates	Yes (x) No ( )
	Additions: Consolidated Subsidiaries 1, Affiliates 1	Deletions: Consolidated Subsidiaries 4, Affiliates 0


Note 1:		Unless otherwise stated, all amounts shown herein are in millions of Japanese yen or millions of U.S. dollars, except for Per Share amounts which are in single yen.
Note 2:		“Income before Income Taxes” represents “Income before Extraordinary Gain, Cumulative Effect of a Change in Accounting Principle and Income Taxes.”

(2)

Performance Highlights — Financial Position (Unaudited)


			Shareholders’		Shareholders’			Shareholders’
	Total Assets		Equity		Equity Ratio			Equity Per Share

June 30, 2003		5,923,307		526,547		8.9	%		6,291.50
June 30, 2002		6,091,100		498,673		8.2	%		5,961.30
March 31, 2003		5,931,067		505,458		8.5	%		6,039.43

1.		The number of outstanding shares (excluding treasury stock) was 83,691,779 as of June 30, 2003, 83,651,712 as of June 30, 2002 and 83,693,009 as of March 31, 2003.

2.		Forecasts for the Year Ending March 31, 2004 (Unaudited)

Total

Income before

Fiscal Year

Revenues

Income Taxes

Net Income

March 31, 2004

730,000

87,000

48,000

Note: Basic Earnings Per Share is forecasted to be JPY 573.53.

Summary of Consolidated Financial Results

Three Months Ended June 30, 2003 (First Quarter)

Financial Highlights


Income before Income Taxes		25,920 million yen (Down 2% year on year)
Net Income		14,098 million yen (Down 17% year on year)
Earnings Per Share (Basic)		168.45 yen (Down 17% year on year)
Earnings Per Share (Diluted)		158.71 yen (Down 16% year on year)
Shareholders’ Equity Per Share		6,291.50 yen (Up 6% year on year)
ROE (annualized)		10.9% (June 30, 2002: 13.5%)
ROA (annualized)		0.95% (June 30, 2002: 1.09%)

Revenues: 170,917 million yen (Up 6% year on year)

Revenues from “operating leases” and “residential condominium sales” both grew strongly. Although there was a decrease in revenues from “direct financing leases” and “interest on loans and investment securities” as a result of the lower balance of assets compared with the first quarter of the previous fiscal year, overall revenues were up 6% year on year to 170,917 million yen.

Expenses: 148,381 million yen (Up 9% year on year)

On the expense side, “costs of residential condominium sales” increased in line with the growth in revenues from condominium sales, while “interest expense” was down 14% year on year due to a decrease in debt and lower interest rates overseas. Overall expenses were up 9% year on year to 148,381 million yen.

Net Income: 14,098 million yen (Down 17% year on year)

“Operating income” fell 9% year on year to 22,536 million yen, while “income before income taxes” was down only 2% to 25,920 million yen due to contributions from “equity in net income of affiliates.” “Net income” was down 17% year on year to 14,098 million yen compared to 16,885 million yen in the first quarter of last fiscal year. The results for the first quarter of last fiscal year included the recording of 1,937 million yen due to a “cumulative effect of a change in accounting principle,” whereas no such effect was recorded in the first quarter of this fiscal year.

Operating Assets: 5,201,976 million yen (Up 1% on March 31, 2003)

“Operating assets” remained almost flat, rising 1% to 5,201,976 million yen compared with March 31, 2003 as a result of a careful selection of new assets.

- 1 -

Segment Information

Operations in Japan

Corporate Finance: While the automobile leasing operations continued to perform relatively strongly, the cautious selection of new assets and the resulting lower level of assets compared with the first quarter of the previous fiscal year in other operations led to a decrease in segment profits to 9,345 million yen in the first quarter of this fiscal year from 10,411 million yen recorded in the same period of the previous fiscal year.

Equipment Operating Leases: The improvement of the precision measuring equipment rental business contributed to an increase in segment profits to 1,520 million yen compared to 1,271 million yen in the first quarter of the previous fiscal year.

Real Estate-Related Finance: Although corporate non-recourse loans, housing loans and loan servicing operations continued to do well, segment profits were 3,018 million yen compared to 6,106 million yen because there was a gain of 3,174 million yen realized from the sale of shares of an affiliated J-REIT to the public in the first quarter of the previous fiscal year, whereas no such item was recorded in the first quarter of this fiscal year.

Real Estate: The condominium development business made a large contribution to segment earnings due to a large number of condominium sales year on year in the first quarter. In addition, gains from the sale of office buildings and other real estate, and revenues from real estate rental properties and building maintenance operations contributed to the jump in segment profits to 8,160 million yen in the first quarter of this fiscal year from 2,735 million yen in the same period of the previous fiscal year.

Life Insurance: This segment experienced a loss of 392 million yen compared to a segment profit of 1,282 million yen in the first quarter of the previous fiscal year due to the decrease in gains on the sale of investment securities.

Other: Although the consumer card loan operations performed well, segment profits decreased to 1,177 million yen in the first quarter of this fiscal year from 2,554 million yen in the first quarter of the previous fiscal year due mainly to fewer gains from the sale of securities in our venture capital operations and losses of The Fuji Fire and Marine Insurance Company, Ltd., an equity method affiliate.

Overseas Operations

The Americas: Segment profits improved to 2,131 million yen in the first quarter of this fiscal year compared to 1,229 million yen in the same quarter of the previous fiscal year in part due to lower costs associated with the restructuring of a subsidiary.

- 2 -

Asia and Oceania: Strong performance of the corporate lending and automobile leasing operations of each company in the region and the contribution from Korea Life Insurance Co., Ltd., an equity method affiliate, resulted in a growth of segment profits to 4,204 million yen in the first quarter of this fiscal year compared to 1,673 million yen in the same period of the previous fiscal year.

Europe: Segment profits experienced a loss of 258 million yen due to the decrease in segment assets.

Outlook and forecasts for the Fiscal Year Ending March 31, 2004

For the fiscal year ending March 31, 2004, we forecast “revenues” of 730,000 million yen (up 7% compared with the fiscal year ended March 31, 2003), “income before income taxes” of 87,000 million yen (up 88%), and “net income” of 48,000 million yen (up 59%). These forecasts are unchanged from those announced on April 25, 2003 at the time of the earnings announcement for the fiscal year ended March 31, 2003.

Additional Information

Korea Life Insurance Co., Ltd. (“KLI”), an equity method affiliate, expects to recognize an additional deferred tax asset due to a change of tax rules in Korea enacted in May 2003. KLI is in the process of finalizing its estimate of the effect of the change of the tax rules. The Company’s share of the effect of the change is presently estimated to approximate 6,000 million yen. In accordance with the Company’s policy of recording its equity in the income of KLI on a one-quarter lag basis, the Company will record equity income related to the tax change in the second quarter ending September 30, 2003.

- 3 -

Consolidated Financial Highlights
(For the Three Months Ended June 30, 2003 and 2002, and the Year Ended March 31, 2003)
(Unaudited)


			(millions of JPY, except for per share data)

						Change
						from
			June 30,			March 31,			Year-on-year			June 30,			Year-on-year			March 31,			Year-on-year
			2003			2003			Change			2002			Change			2003			Change

Operating Assets
Investment in Direct Financing Leases				1,582,153			101	%		96	%		1,646,932			101	%		1,572,308			95	%
Installment Loans				2,302,005			101	%		99	%		2,327,354			121	%		2,288,039			101	%
Investment in Operating Leases				523,413			99	%		116	%		451,012			97	%		529,044			111	%
Investment in Securities				697,926			103	%		92	%		759,406			79	%		677,435			79	%
Other Operating Assets				96,479			95	%		67	%		143,064			108	%		101,481			39	%

Total				5,201,976			101	%		98	%		5,327,768			104	%		5,168,307			93	%

Operating Results
Total Revenues				170,917			—			106	%		160,957			90	%		683,645			104	%
Income before Income Taxes				25,920			—			98	%		26,322			125	%		46,288			63	%
Net Income				14,098			—			83	%		16,885			162	%		30,243			75	%
Earnings Per Share
	Income before Extraordinary Gain and Cumulative
	Effect of a Change in Accounting Principle
		Basic		168.45			—			94	%		178.70			142	%		299.88			62	%
		Diluted		158.71			—			94	%		168.19			139	%		283.04			61	%
	Net Income
		Basic		168.45			—			83	%		201.85			158	%		361.44			74	%
		Diluted		158.71			—			84	%		189.95			155	%		340.95			73	%
Shareholders’ Equity Per Share				6,291.50			104	%		106	%		5,961.30			104	%		6,039.43			101	%

Financial Position
Shareholders’ Equity				526,547			104	%		106	%		498,673			107	%		505,458			101	%
Number of Shares (’000)
	(excluding treasury stock)			83,692			100	%		100	%		83,652			102	%		83,693			100	%
Long-and Short-Term Debt and Deposits				4,232,175			100	%		94	%		4,489,605			108	%		4,239,514			91	%
Total Assets				5,923,307			100	%		97	%		6,091,100			107	%		5,931,067			93	%
Shareholders’ Equity Ratio				8.9	%		—			—			8.2	%		—			8.5	%		—
Return on Equity (annualized)				10.9	%		—			—			13.5	%		—			6.0	%		—

New Business Volumes
Direct Financing Leases
		New Receivables Added		212,175			—			89	%		237,779			128	%		1,000,896			92	%
		New Equipment Acquisitions		188,194			—			89	%		210,819			132	%		895,848			91	%
Installment Loans				270,959			—			79	%		341,138			127	%		1,268,170			95	%
Operating Leases				40,810			—			196	%		20,870			44	%		173,567			119	%
Investment in Securities				57,370			—			117	%		48,907			55	%		231,294			66	%
Other Operating Assets				28,655			—			138	%		20,768			93	%		116,736			57	%

- 4 -

Condensed Consolidated Statements of Income
(For the Three Months Ended June 30, 2003 and 2002, and the Year Ended March 31, 2003)
(Unaudited)


	(millions of JPY, millions of US$)

	Three Months				Three Months
	ended		Year-on-year		ended		Year-on-year		Year ended		Year-on-year		U.S. dollars
	June 30,		Change		June 30,		Change		March 31,		Change		June 30,
	2003		(%)		2002		(%)		2003		(%)		2003

Total Revenues:		170,917		106		160,957		90		683,645		104		1,427

Direct Financing Leases		28,516		93		30,742		104		122,928		101		238
Operating Leases		37,878		124		30,534		108		127,608		106		316
Interest on Loans and Investment Securities		28,314		92		30,757		106		131,590		108		236
Brokerage Commissions and Net Gains on Investment Securities		3,246		63		5,127		127		10,857		59		27
Life Insurance Premiums and Related Investment Income		30,590		93		32,946		82		138,511		91		255
Residential Condominium Sales		23,176		199		11,666		41		71,165		123		193
Interest Income on Deposits		161		91		177		37		526		38		1
Other Operating Revenues		19,036		100		19,008		98		80,460		126		161

Total Expenses:		148,381		109		136,258		87		645,562		110		1,239

Interest Expense		16,258		86		18,974		73		71,990		80		136
Depreciation—Operating Leases		20,697		107		19,429		104		80,565		105		173
Life Insurance Costs		29,326		99		29,649		82		125,684		90		245
Costs of Residential Condominium Sales		20,372		204		9,985		43		60,769		123		170
Other Operating Expenses		10,217		122		8,379		78		41,359		140		85
Selling, General and Administrative Expenses		37,489		110		34,163		115		144,271		114		312
Provision for Doubtful Receivables and Probable Loan Losses		11,968		93		12,803		133		54,706		107		100
Write-downs of Long-Lived Assets		—		—		—		—		50,682		1866		—
Write-downs of Securities		1,506		70		2,166		102		14,325		73		13
Foreign Currency Transaction Loss, Net		548		77		710		62		1,211		—		5

Operating Income		22,536		91		24,699		113		38,083		52		188
Equity in Net Income of Affiliates		3,384		209		1,623		—		6,203		—		28
Gain on Sales of Affiliates		—		—		—		—		2,002		1682		—

Income before Extraordinary Gain, Cumulative Effect of a Change in Accounting Principle and Income Taxes		25,920		98		26,322		125		46,288		63		216
Provision for Income Taxes		11,822		104		11,374		106		21,196		64		98

Income before Extraordinary Gain and Cumulative Effect of a Change in Accounting Principle		14,098		94		14,948		145		25,092		63		118

Extraordinary Gain, Net of Applicable Tax Effect		—		—		—		—		3,214		—		—
Cumulative Effect of a Change in Accounting Principle, Net of Applicable Tax Effect		—		—		1,937		1456		1,937		1456		—

Net Income		14,098		83		16,885		162		30,243		75		118

- 5 -

Condensed Consolidated Balance Sheets
(As of June 30, 2003 and March 31, 2002)
(Unaudited)


		(millions of JPY, millions of US$)

								U.S. dollars
		June 30, 2003			March 31, 2003			June 30, 2003

Assets
Cash and Cash Equivalents			166,925			204,677			1,393
Restricted Cash			20,985			18,671			175
Time Deposits			566			1,184			5
Investment in Direct Financing Leases			1,582,153			1,572,308			13,207
Installment Loans			2,302,005			2,288,039			19,215
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses			(134,740	)		(133,146	)		(1,125	)
Investment in Operating Leases			523,413			529,044			4,369
Investment in Securities			697,926			677,435			5,826
Other Operating Assets			96,479			101,481			805
Investment in Affiliates			152,297			144,974			1,271
Other Receivables			138,708			146,650			1,158
Advances			115,485			119,645			964
Prepaid Expenses			44,230			41,494			369
Office Facilities			75,481			77,043			630
Other Assets			141,394			141,568			1,181

Total			5,923,307			5,931,067			49,443

Liabilities and Shareholders’ Equity
Short-Term Debt			1,120,197			1,120,434			9,351
Deposits			270,183			262,467			2,255
Trade Notes, Accounts Payable and Other Liabilities			260,033			252,453			2,171
Accrued Expenses			76,886			82,012			642
Policy Liabilities			604,830			608,553			5,049
Current and Deferred Income Taxes			147,913			163,711			1,235
Deposits from Lessees			74,923			79,366			624
Long-Term Debt			2,841,795			2,856,613			23,721

Total Liabilities			5,396,760			5,425,609			45,048

Common Stock			52,067			52,067			435
Additional Paid-in Capital			70,002			70,002			584
Retained Earnings:
	Legal Reserve		2,220			2,220			19
	Retained Earnings		441,169			429,163			3,683
Accumulated Other Comprehensive Loss			(30,657	)		(39,747	)		(256	)
Treasury Stock, at Cost			(8,254	)		(8,247	)		(70	)

Shareholders’ Equity			526,547			505,458			4,395

Total			5,923,307			5,931,067			49,443


								U.S. dollars
		June 30, 2003			March 31, 2003			June 30, 2003

Note:	Accumulated Other Comprehensive Loss
	Net unrealized gains on investment in securities		11,599			1,917			97
	Minimum pension liability adjustments		(4,179	)		(4,182	)		(35	)
	Foreign currency translation adjustments		(31,195	)		(29,919	)		(260	)
	Net unrealized losses on derivative instruments		(6,882	)		(7,563	)		(58	)

- 6 -

Segment Information
(For the Three Months Ended June 30, 2003 and 2002, and the Year Ended March 31, 2003)
(Unaudited)


		(millions of JPY)

		Three months ended June 30, 2003								Three months ended June 30, 2002								Year ended March 31, 2003

				Income								Income								Income
				(Loss) before			Operating					(Loss) before			Operating					(Loss) before			Operating
		Revenues		Income Taxes			Assets			Revenues		Income Taxes			Assets			Revenues		Income Taxes			Assets

Operations in Japan
	Corporate Finance		30,993		9,345			1,910,425			31,465		10,411			2,008,152			125,560		44,158			1,893,422
	Equipment Operating Leases		16,980		1,520			142,189			16,233		1,271			141,905			67,655		4,402			144,397
	Real Estate-Related Finance		10,937		3,018			932,999			13,995		6,106			906,193			51,589		19,572			931,513
	Real Estate		37,239		8,160			295,663			18,983		2,735			293,189			104,454		(39,441	)		303,838
	Life Insurance		30,590		(392	)		592,987			32,946		1,282			497,593			138,511		4,791			579,805
	Other		16,231		1,177			395,184			12,773		2,554			389,605			61,238		8,452			387,978

	Sub-Total		142,970		22,828			4,269,447			126,395		24,359			4,236,637			549,007		41,934			4,240,953
Overseas Operations
	The Americas		11,313		2,131			604,167			14,739		1,229			695,351			57,909		1,332			618,148
	Asia and Oceania		12,857		4,204			461,345			13,741		1,673			467,456			55,425		9,765			437,874
	Europe		2,606		(258	)		70,657			3,091		(545	)		98,200			13,311		(736	)		75,207

	Sub-Total		26,776		6,077			1,136,169			31,571		2,357			1,261,007			126,645		10,361			1,131,229

Segment Total			169,746		28,905			5,405,616			157,966		26,716			5,497,644			675,652		52,295			5,372,182

Difference between Segment totals and Consolidated Amounts			1,171		(2,985	)		(203,640	)		2,991		(394	)		(169,876	)		7,993		(6,007	)		(203,875	)

Consolidated Amounts			170,917		25,920			5,201,976			160,957		26,322			5,327,768			683,645		46,288			5,168,307


		(millions of US$)

		U.S. dollars June 30, 2003

				Income
				(Loss) before			Operating
		Revenues		Income taxes			Assets

Operations in Japan
	Corporate Finance		259		78			15,947
	Equipment Operating Leases		142		12			1,187
	Real Estate-Related Finance		91		25			7,788
	Real Estate		311		68			2,468
	Life Insurance		255		(3	)		4,950
	Other		135		10			3,298

	Sub-Total		1,193		190			35,638
Overseas Operations
	The Americas		95		18			5,043
	Asia and Oceania		107		35			3,851
	Europe		22		(2	)		590

	Sub-Total		224		51			9,484

Segment Total			1,417		241			45,122

Difference between Segment totals and Consolidated Amounts			10		(25	)		(1,700	)

Consolidated Amounts			1,427		216			43,422

- 7 -

Key Quarterly Financial Data (Unaudited)


		(millions of JPY)

		Fiscal 2003												Fiscal 2004

Balance Sheet Data		Q1 (02/4-6)			Q2 (02/7-9)			Q3 (02/10-12)			Q4 (03/1-3)			Q1 (03/4-6)

1) Investment in Direct Financing Leases			1,646,932			1,669,623			1,634,494			1,572,308			1,582,153
	Japan		1,283,552			1,305,846			1,278,175			1,237,141			1,242,600
	Overseas		363,380			363,777			356,319			335,167			339,553
2) Installment Loans			2,327,354			2,326,189			2,374,664			2,288,039			2,302,005
	Japan		1,898,108			1,932,184			1,986,182			1,954,640			1,969,694
	Overseas		429,246			394,005			388,482			333,399			332,311
3) Investment in Operating Leases			451,012			460,103			454,468			529,044			523,413
	Japan		327,391			339,403			340,997			369,489			358,596
	Overseas		123,621			120,700			113,471			159,555			164,817
4) Investment in Securities			759,406			717,500			695,319			677,435			697,926
	Japan		565,409			520,005			505,995			497,829			528,184
	Overseas		193,997			197,495			189,324			179,606			169,742
5) Other Operating Assets			143,064			129,311			142,856			101,481			96,479
	Japan		132,217			118,558			132,847			91,851			87,217
	Overseas		10,847			10,753			10,009			9,630			9,262

Total Operating Assets			5,327,768			5,302,726			5,301,801			5,168,307			5,201,976

Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses			(150,264	)		(136,961	)		(136,833	)		(133,146	)		(134,740	)
Allowance/Investment in Direct Financing Leases and Installment Loans			3.8	%		3.4	%		3.4	%		3.4	%		3.5	%

Total Assets			6,091,100			6,050,290			6,025,781			5,931,067			5,923,307

Short-Term Debt, Long-Term Debt and Deposits			4,489,605			4,425,331			4,393,599			4,239,514			4,232,175
Policy Liabilities			600,144			601,815			598,832			608,553			604,830

Total Liabilities			5,592,427			5,550,564			5,519,176			5,425,609			5,396,760

Shareholders’ Equity			498,673			499,726			506,605			505,458			526,547

Total Liabilities & Shareholders’ Equity			6,091,100			6,050,290			6,025,781			5,931,067			5,923,307


Income Statement Data			Q1 (02/4-6)			Q2 (02/7-9)			Q3 (02/10-12)			Q4 (03/1-3)			Q1 (03/4-6)

Revenues
1) Direct Financing Leases			30,742			32,737			29,880			29,569			28,516
	Japan		21,987			24,854			22,503			22,099			21,906
	Overseas		8,755			7,883			7,377			7,470			6,610
2) Operating Leases			30,534			30,545			30,675			35,854			37,878
	Japan		22,012			21,808			21,321			22,511			28,064
	Overseas		8,522			8,737			9,354			13,343			9,814
3) Interest on Loans and Investment Securities			30,757			33,284			31,395			36,154			28,314
	Interest on loans		26,203			29,323			27,634			32,450			25,729
	Japan		19,795			22,089			21,506			25,678			21,082
	Overseas		6,408			7,234			6,128			6,772			4,647
Interest on investment securities			4,554			3,961			3,761			3,704			2,585
	Japan		319			162			180			205			173
	Overseas		4,235			3,799			3,581			3,499			2,412
4) Brokerage Commissions and Net Gains on Investment Securities			5,127			2,800			1,355			1,575			3,246
	Brokerage commissions		774			569			536			521			691
	Net Gains on investment securities		4,353			2,231			819			1,054			2,555
5) Life Insurance Premiums and Related Investment Income			32,946			38,886			28,321			38,358			30,590
	Life insurance premiums		28,745			34,503			25,184			34,531			27,524
	Related investment income		4,201			4,383			3,137			3,827			3,066
6) Residential Condominium Sales			11,666			18,076			21,982			19,441			23,176
	Japan		11,666			18,076			21,982			19,441			23,176
	Overseas		—			—			—			—			—
7) Interest Income on Deposits			177			135			98			116			161
8) Other Operating Revenues			19,008			17,308			19,463			24,681			19,036
	Japan		17,015			14,867			16,243			22,420			16,952
	Overseas		1,993			2,441			3,220			2,261			2,084

Total Revenues			160,957			173,771			163,169			185,748			170,917

- 8 -


		(millions of JPY)

		Fiscal 2003												Fiscal 2004

Income Statement Data		Q1 (02/4-6)			Q2 (02/7-9)			Q3 (02/10-12)			Q4 (03/1-3)			Q1 (03/4-6)

Expenses
1) Interest Expense			18,974			17,730			17,555			17,731			16,258
2) Depreciation—Operating Leases			19,429			19,424			19,744			21,968			20,697
3) Life Insurance Costs			29,649			34,775			26,792			34,468			29,326
4) Costs of Residential Condominium Sales			9,985			15,727			17,596			17,461			20,372
5) Other Operating Expenses			8,379			9,770			10,114			13,096			10,217
6) Selling, General and Administrative Expenses			34,163			35,666			35,270			39,172			37,489
7) Provision for Doubtful Receivables and Probable Loan Losses			12,803			12,164			12,421			17,318			11,968
8) Write-downs of Long-Lived Assets			—			14,665			—			36,017			—
9) Write-downs of Securities			2,166			3,576			2,174			6,409			1,506
10) Foreign Currency Transaction Loss (Gain), Net			710			338			516			(353	)		548

Total Expenses			136,258			163,835			142,182			203,287			148,381

Operating Income (Loss)			24,699			9,936			20,987			(17,539	)		22,536
Equity in Net Income of Affiliates			1,623			1,736			2,315			529			3,384
Gain on Sales of Affiliates			—			2			—			2,000			—
Income (Loss) before Income Taxes			26,322			11,674			23,302			(15,010	)		25,920
Income Taxes Provision (Benefit)			11,374			5,796			10,853			(6,827	)		11,822
Income (Loss) before Extraordinary Gain and Cumulative Effect of a Change in Accounting Principle			14,948			5,878			12,449			(8,183	)		14,098
Extraordinary Gain, Net of Applicable Tax Effect			—			—			—			3,214			—
Cumulative Effect of a Change in Accounting Principle, Net of Applicable Tax Effect			1,937			—			—			—			—

Net Income (Loss)			16,885			5,878			12,449			(4,969	)		14,098


New Business Volumes		Q1 (02/4-6)			Q2 (02/7-9)			Q3 (02/10-12)			Q4 (03/1-3)			Q1 (03/4-6)

Direct Financing Leases: New receivables added			237,779			325,817			213,620			223,680			212,175
	Japan		172,957			274,881			149,193			161,755			158,176
	Overseas		64,822			50,936			64,427			61,925			53,999
Direct Financing Leases: New equipment acquisitions			210,819			297,122			187,555			200,352			188,194
	Japan		151,062			251,883			128,093			144,525			138,479
	Overseas		59,757			45,239			59,462			55,827			49,715
Installment Loans: New loans added			341,138			334,070			295,622			297,340			270,959
	Japan		273,867			300,963			261,815			264,242			225,042
	Overseas		67,271			33,107			33,807			33,098			45,917
Operating Leases: New equipment acquisitions			20,870			40,656			27,513			84,528			40,810
	Japan		14,128			33,517			20,667			74,688			29,880
	Overseas		6,742			7,139			6,846			9,840			10,930
Investment in Securities: New securities added			48,907			46,321			25,894			110,172			57,370
	Japan		38,346			44,804			23,520			107,807			53,835
	Overseas		10,561			1,517			2,374			2,365			3,535
Other Operating Assets: New assets added			20,768			29,791			28,197			37,980			28,655
	Japan		15,475			29,403			23,504			30,948			28,655
	Overseas		5,293			388			4,693			7,032			—

Key Ratios, Per Share Data, and Employees		Q1 (02/4-6)			Q2 (02/7-9)			Q3 (02/10-12)			Q4 (03/1-3)			Q1 (03/4-6)

Return on Equity (ROE)*			13.5	%		4.7	%		9.9	%		(3.9	%)		10.9	%
Return on Assets (ROA)*			1.09	%		0.39	%		0.82	%		(0.33	%)		0.95	%
Shareholders’ Equity Ratio			8.2	%		8.3	%		8.4	%		8.5	%		8.9	%
Debt-to-Equity Ratio (times)			9.0			8.9			8.7			8.4			8.0
Shareholders’ Equity Per Share (yen)			5,961.30			5,973.44			6,053.07			6,039.43			6,291.50
Basic EPS (yen)			201.85			70.27			148.76			(59.38	)		168.45
Diluted EPS (yen)			189.95			66.32			140.18			(59.38	)		158.71
Number of Employees			11,820			11,859			11,977			11,833			11,621

annualized

- 9 -


			(millions of JPY)

			Fiscal 2003												Fiscal 2004

Segment Information			Q1 (02/4-6)			Q2 (02/7-9)			Q3 (02/10-12)			Q4 (03/1-3)			Q1 (03/4-6)

Operations in Japan	Corporate Finance			31,465			33,079			31,147			29,869			30,993
	Equipment Operating Leases			16,233			16,734			16,899			17,789			16,980
	Real Estate-Related Finance			13,995			11,708			11,252			14,634			10,937
	Real Estate			18,983			26,331			30,305			28,835			37,239
	Life Insurance			32,946			38,886			28,321			38,358			30,590
	Other			12,773			14,386			15,000			19,079			16,231

		Sub-Total		126,395			141,124			132,924			148,564			142,970

Overseas Operations	The Americas			14,739			12,536			13,012			17,622			11,313
	Asia and Oceania			13,741			13,838			13,802			14,044			12,857
	Europe			3,091			2,742			3,760			3,718			2,606

		Sub-Total		31,571			29,116			30,574			35,384			26,776

Total Segment Revenues				157,966			170,240			163,498			183,948			169,746

Operations in Japan	Corporate Finance			10,411			14,089			11,562			8,096			9,345
	Equipment Operating Leases			1,271			1,708			1,593			(170	)		1,520
	Real Estate-Related Finance			6,106			3,804			2,754			6,908			3,018
	Real Estate			2,735			(11,542	)		4,341			(34,975	)		8,160
	Life Insurance			1,282			1,694			(27	)		1,842			(392	)
	Other			2,554			4,372			3,229			(1,703	)		1,177

		Sub-Total		24,359			14,125			23,452			(20,002	)		22,828

Overseas Operations	The Americas			1,229			(2,256	)		437			1,922			2,131
	Asia and Oceania			1,673			2,641			1,545			3,906			4,204
	Europe			(545	)		(65	)		(112	)		(14	)		(258	)

		Sub-Total		2,357			320			1,870			5,814			6,077

Total Segment Profits (Income (Loss) before Income Taxes)				26,716			14,445			25,322			(14,188	)		28,905

Operations in Japan	Corporate Finance			2,008,152			1,981,237			1,963,548			1,893,422			1,910,425
	Equipment Operating Leases			141,905			142,964			145,234			144,397			142,189
	Real Estate-Related Finance			906,193			908,115			908,821			931,513			932,999
	Real Estate			293,189			289,919			307,599			303,838			295,663
	Life Insurance			497,593			570,983			578,744			579,805			592,987
	Other			389,605			372,273			398,435			387,978			395,184

		Sub-Total		4,236,637			4,265,491			4,302,381			4,240,953			4,269,447

Overseas Operations	The Americas			695,351			713,300			691,100			618,148			604,167
	Asia and Oceania			467,456			431,966			454,123			437,874			461,345
	Europe			98,200			86,024			78,376			75,207			70,657

		Sub-Total		1,261,007			1,231,290			1,223,599			1,131,229			1,136,169

Total Segment Assets				5,497,644			5,496,781			5,525,980			5,372,182			5,405,616

- 10 -

Comprehensive Income (Loss) under FASB Statement No.130 (“Reporting Comprehensive Income”) was gain of JPY 23,188 million (US$194 million) for the three months ended June 30, 2003, loss of JPY 2,607 million for the three months ended June 30, 2002 and gain of JPY 3,936 million for the year ended March 31, 2003.

The Company recognized an extraordinary gain due to the excess of the proportionate fair value of the net assets over the purchase price of the affiliate paid by the Company (“Negative Goodwill”).

On April 1, 2002, as a result of the adoption of FASB Statement No. 141 (“Business Combinations”), the Company and its subsidiaries recorded a transition gain arising from the write-off of “Negative Goodwill” of JPY1,937 million as of March 31, 2002 as the “Cumulative Effect of a Change in Accounting Principle.”