ORIX (IX) 3 Nov 202021 Q2 Earnings call transcript

Good evening, ladies and gentlemen. Thank you for joining this today's conference of ORIX Corporation for Second Quarter Consolidated Financial Results for the 6-month period ended September 30, 2020. The attendees of today's conference are members of the Board of Directors, Executive Director, President and Chief Executive Officer, Mr. Inoue; Member of the Board of Directors, Senior Managing Executive Director, Responsible Treasury and Accounting Headquarters, CEO; Mr. Taniguchi; and Executive Officer, Head of Treasury and accounting headquarters, Mr. Yano. at around has X:XX used the uploaded be at website p.m. to today's been meeting on Materials today. Please refer to those materials.

Before requests. we [Operator some Instructions]. begin, we have

by by The Yano, a half of meeting be first the Q&A session. second Inoue, Mr. presented half followed by will Mr.

one have approximately meeting. for hour We whole this

this over Now Yano. to we At Please would to like begin. begin to I'd like Mr. turn meeting. the time, the call

very the So to much to Yano. this you for like of of Thank And schedule. results despite thank introduction. financial all today, of participants busy the the I'd meeting is briefing your

March I'd hand. billion, was Now the ending portfolio with we second a ¥XX.X diversified strength March our income XX% half first and Net results X fiscal X.X%. group results whole. year year-on-year quarter refer Please impact of for financial the to revised Page for of ended the like the XX, explain to But down the profits to XXXX. for was remaining, of secure solid of financial on COVID-XX our of the ROE year materials XXXX, as the by on the financial to annualized business briefing

we monthly We Therefore, believe at condition, out billion. concession quarter the and rates, booked and the or were quarter, tax almost a ¥X.X at flat, such of tax first went to the second bottom. are first ¥X.X of income profit before billion we Net rate. actual compared As revision in some respect. of ¥XX.X by not are XX% as by of affected down result a losses estimated profits billion as net a the tax, quarter business that on which terms with business of companies

separately to segment ¥XXX.X facilities gain the page. sales the to decline So the The and on Lokey fiscal in ¥XX.X The for period base ¥XXX.X profit of We of impact colored, certain and In reason income page, outbreak. the dark realize the to on on gain billion. there profit. page. gain color, to saving blue was sales, in pale by were We in billion. the last ¥XX.X same COVID-XX billion. year explained by totaled on of profit The for Please from next here. refer blue ¥XX.X next of sales next well let's by States. billion breakdown The main basic by the of able segment as billion year to explained down on year, XX% was the year-on-year down profit breakdown logistics move was were amount XX%, the previous and United the gain this selling assets, a others. like Houlihan ORIX The

quarter. in second So shows financial COVID-XX of the the page earnings to the the impact

on can Hartford result in the in of a as less. X quarter to lag quarter, ¥X ORIX total liability impact for leasing compared of quarter of the As also, billion first second business, months and had trend. described business the down mentioned at by booking, reversal be reserve ¥X rental the billion. billion as the operation the recovery, into but business becoming And recovery before. -- a to market decreased in the approximately was impact is car Concession Taking a ¥XX there in amount aircraft as for profit this first first account, U.S.A. estate quarter, certainly the real financial to Life. was The being

page. next the to on move us let So

financial higher the Compared ORIX and leasing, of ORIX and credit, to profit. achieved first segment The income First banking was ¥XXX.X corporate total services, the from XX% down segment last total year at Europe segment by same real of U.S.A. quarter, maintenance, is period estate, profits. billion.

insurance, energy, presented and onwards. In affected addition, and Page information on the each COVID-XX credit Detailed year-on-year XX banking of that growth. for are by segment profit least and X and achieved segments environment

brief let So here. a give me overview

was As the at announcement, will of quarter later three and for as time as the by full more the as COVID in significantly the business Inoue, the year first well divisions that that aircraft real the estate, Mr. the explained mentioned affected are financial by of concession results be businesses XX leasing detail CEO.

rental was slow for the decline state the technology also its factors. The maintenance and utilization corporate down other were affected of and a by rate demand activities, Automobiles of financial forced a corporate Japan, services center. declaration in first sales emergency In to leasing costs restricted segment. at is [indiscernible] also

state lifting division due However, this quarter the recovered first recovered, significantly sales to the profit. Corporate Services in loss from Financial and recovered quarter positive second improved sales rental after to car in income significantly the car a commission aggressive rental, demand of in of tourism emergency, the activities. profits

is division pace. constant estate. Next a the real continuing This at

by both reopened be to strong. trend. operation COVID-XX, Hotel enjoying recovery affected inn and While the and DAIKYO significantly remaining is not

Next is concession. and the investment

For been turnover of X-month some the to the lag closing of of company solid, the Weaker year, accounts. but is due each private the business from the to equity, contributing profit. there's portfolio previous concession is

reduction first the Moving including the the first is power posted in solid. this wind one-off be for India. But Environment. Energy quarter to business, profit in due in is and profit on compared It to appears quarter. solar, Renewables a to to

that, first Excluding up profit the quarter. compared is the to

the Next to compared is and such utilizing the TV but force. increase in recognized was But of the lower Again, activity first could first it sales non-face-to-face for of as Hartford reversal policies Life. due profit to by quarter, Insurance. the is The number online in seems quarter restricted. activities we profit shopping, to this face-to-face be

to the quarter. the previous profit up compared that, is Excluding

non-face-to-face for helped real Moving on credit. to banking to assets activities online ORIX investment Life, and Similar grow the estate loans. sales and

up. responding both and against profit stable the And first the to lifestyle the new and We are year, maintaining the profit. quarter previous was

but recovery with ships. lease The in demand here due increase aircraft and domestic in business, we which the to future mainstay a to Moving aircraft lines. expect is an on COVID-XX, worsened

the Moving to and thanks the Compared this smaller increase quarter, energy-related appraisals in if and as ORIX in It is year. also gains credit to U.S.A. But profit, investment on the is first into to gain in was previous PE seems to quarter, year. lower previous turning major first that the Houlihan in the this profit on the due companies. posted the much than losses of Lokey a sales

recognized at Last first Europe Europe. also compared up this lower operating improvement, ¥XXX end profit ORIX prices AUM China. in of the March and share to deal companies Next and in than September is billion the to billion, a that end at profit XX% growth XXXX ¥XXX more was Australia. bottom recovered and and it XXXX, hit solid ORIX we invested We quarter. impairment doing to of excluding Asia second into quarter. the positive impairment, is the are due business the is But local

see on assets, Corporate balance ¥X.XXXX investment regarding also segment in on Europe, management. at to which on a up insurance future end but At the the segment down. and That's difficult by of Banking Moving in is the the sheet the is business are COVID-XX, wave term, distributed real I about next all was the X% finance page, slowly, to and asset second building To its loans. is move the maintenance that of there's to standing estate ORIX trillion, we portfolio, And putting now, X%, soundness. financial X%, is this reduced profit ¥X.XXXX solid. the like the and policies. based you right performance. services our of number focusing carefully increase can efforts see, up despite on U.S.A. are at thanks to left, In trillion, assets. more assets thanks by the leasing. credit would financing X about strength. the into was Page trillion. to COVID-XX, increase a the decreasing Finance business ¥X.XXXX And

high capital ratio, employed including business, lease collection And the operating flow, of on conservative have for a We When presented aircraft level. extensive equity the in from well our end request the May, September at the is hand regarding thanks first announcement at assets. as To debt for is my remains XX%. as XXXX, which capacity, above well we the capital collection the right, shareholder's banking capital XX% the at full stayed potential the ending efficient liquidity XX%, cash half fact, for rate year And is March which deferral the sufficient fiscal late the as low to made see in ratio test. we loans the long-term future means there stress with market. can scenario you But XXXX. concludes worsening that as of the as That both year investments. has performance presentation of

we'd our Mr. presentation. Next, like invite for to Inoue, CEO, his

by Good we apologize the to the you afternoon. this of teleconference. spread through But from Inoue session is affected inconvenience. understanding. So this for for ORIX. COVID-XX, ask I the also have your announcement Still I hold

explain making let So by of Page use me X.

of foresee half, world. business March at the X.X%. the easy we profit, XXXX ¥XX.X were was So for different is billion; ahead. the course, tax ending. it to forecast cannot, still And ROE, the ¥XXX.X profit before second and mixed half, fortunately, the end, net billion; conditions pretty first the In business think countries that among our of COVID-XX and between us spread we of not And

end profit net of at ¥XXX fiscal decided period. have at to we to this However, billion the our be forecast

in the that also May, forecasting full the as to of was associated was this At So to spread the mean of compared global slowdown not the XX.X% to pandemic, of back decline to billion, that an because the easy. and of -- impact -- of our if we the would of a the be of easy the with not was to in prior year. COVID-XX impact earning profit it virus achieved, ¥XXX case acute economy announcement financial be the thought year time to

be of it If So explained the billion. be to year, range Whereas in to have our the would ¥XXX billion. to to billion enjoying scenarios. X normalization for the ¥XXX X if between start able businesses would net be we will the persist ¥XXX the ¥XX from of profit billion third is quarter, ranged impact we

this our cannot we this and still expect of of although to the end why at be unfold, have focus higher. year XX%, And ¥XX or the profit So should are will to full a decided to payout year. whichever that amount the to not ¥XXX forecasting be things case, we but for also worst we we is the dividend, billion see we is as net how ratio think

cash for As as confirmed raising, as remaining both financial cash that we the to no and flow be well fund concern. is have flow steady, operating is the the there

of budget of shares ¥XX.X billion billion program would making to program, repurchase ¥XXX of worth unused this by we like the and therefore, program our use program. of So repurchase this restart

So we to this -- budget up expect this within program use and year.

payout the for the period, as make As next with year announcement going an repurchased would strategy period full fiscal ratio shares for the as of together forward time at our like the the well to announcement. I fiscal

expansion March as first countries in the end, for easing of half As the well public as world. spending manager of XXXX of different

equity IT almost related, the all. real are remaining correction. equity Contrary some on high. pre-corona metrics of have be to fact, major the the and And In of back COVID-XX, hand, and served -- market the estate are almost not is going are impact price -- There any price through the to to by days. may energy, the other COVID-XX, unaffected they the is renewable prices

so remain anticipate world course, also However, scheduled optimistic is to exercised wave of Europe, we the be being countries also seems negative being second the with effort affecting worsening. for we no be the a have of U.S.-China and therefore to impact time cannot, presidential And being. COVID-XX there election remaining and by tomorrow, the concerted certain of the impact, to is situation because

by all of of also, ¥XX However, health of very this, the we worth trillion our terms will is in risk. affected the able to although enjoy much we the but will asset. assets And be discussed be

very be the fact, remain, life insurance, impact in COVID-XX the if segment, the even impact So banking, limited. will would retail

see the a ends. our beginning down business half turn concerned. is things that same a at we in foresee can stable both From terms are source more investment to time we beginning also are revenue made to we -- little profit of to So and as our aggressive onwards, a going so of second generation contribution the far whereby are areas to in settle

at to so So as be continue for a whereas much pace. outlook to strategic us like that extent given AA- outlook continued. also, rating, new activities, of would has we grow has minus well would [indiscernible] able in we rating stable. the to terms of of carrying be of given higher single the After Moody's, S&P fact, assets And more negative, and to Fitch us as sales the positive credit the is aggressive in turn out investment of with A

the So dependent some timing like the a down rating investment result assets, be portfolio the as we continue to build rating over soundness as as goes or maintain long no notch. our activities mid to It replacement one financial whereby by and But a would without of M&A case take may disposition, single policy of on well to that there perhaps saying could a change to a with resilient we commensurate we term. would as go A mission. that it in of our make

I'm for example, cannot the will impact foresee impact. that remain BBB, be assuming major may we However, rating now, any limited. go down sure to the

So funding concerned. XX. is also the to for capacity Please and Page additional cost funding refer the

As situation, supportive fact, is businesses, of for businesses. very but campaign, for rate as real is real on these the under estate the that reopened of had in close except we recovery. hotels Occupancy one. of Go as operating to estate Travel inns To our state all operating emergency well

worst. We have of the come out

occupancy a well was As matter of whereas hotels businesses inns, in as fact, operated rate direct X%, consignment the of X%. inns X%, April and as back hotels,

[indiscernible] July, XX%. KARAKU KANAZAWA. each XX%. Hakone in XX%, complex these had moreover, October, was of has it CROSS occupancy And However, Gora August open to in in opened. recovered GATE was spring X%, XX%, In facility, an KARAKU rate XX%, rooms. the XXXX hot October,

at So is luxury targeting an fact, are It And reopened trending we of is in inn. customers. the [indiscernible] well. reservation,

logistics the inquiries, current new many As District. focused in the Tokyo development, light Metropolitan around been for facilities conditions, receiving have of we

business, have that ¥XXX IRR fact, XX%. deals XX,XXX worth development with billion the secured pipeline. record this proceeding in size are we The was the track around [indiscernible] of of We -- And of of

can we made positive therefore, a continue contribution to this expect So area. from

negative Energy itself fueled commit inefficient has to for As coal-fired Soma as Park XXXX. major the to do Energy moment, to announcement government have the emission. called METI is biomass by well information, a an total, kilowatts. COX generation that, multi-fixed a of At plant power decommission as Park the the We plant, of made XXX,XXX reduction considering in

combustion power this mix As the plant, power biomass -- for generation the ratio XX%. is

power savings, energy the criteria. the generation efficiency sufficing on our is based the the high-efficiency So -- of though,

on as initially. METI be planned of this the decommissioning on make going particular few However, plant decision this this for as to plant, are is we power XXXX to in December, continuing to plants. But scheduled operate up the until

around for they schedule depreciation. therefore, to perhaps we and move may have So direction, change up the may their

I So as be to mentioning will the later details. on

to And course, rebuilt. emission be TCFD we October, would had the our as is for support with However, risk We ORIX strategy to policy, future. to, in continue of expressed Group. COX while reduction government the analyze the complying

As slight of for the concession business, recovery. there are signs

passengers time. not may ourselves for to have prepare for international to recover some of to we number the However,

hand, recovering, selection the flights cargo, year's and On other level. process only Official date X months. from are postponed trending IR domestic year by the also strong fact, above review in we the would site start next onward. prior

based will COVID-XX to of change plan, make support. on but no our we'll rationally act total analysis We original

to us Page on XX. Let move

as and including Systems, major rest portfolio, leasing lessees after OAS has portfolio widebody, a In the the aircraft, XX% business, almost the the to was ORIX aircraft were flagship of different And major carriers. several which carriers, all But -- the price As stands is including reevaluated is several for companies, lessees In first Ascent appraisal of for fluctuations. of result Aviation resumed OAS leased smaller payments. narrow-body, all Avitas, and of quarter, models September, such referral, period deferrals. the announced. granted the

stakes to deal lower and delivered necessary. of units to Avalon's we was that demand September, that value September and compared carriers. units improvement concluded fee. aircraft secure And XXX environment. to with against December XXX issuance are And less from be have OAS completed financing we And Airbus the liquidity, which to Boeing the in in not are the and of would future impairment from secured aircraft all rating. to have end the the Avalon. was of a value decreased We XXXX, and million XXXX We be XXXX, unsecured present result end completed own by means trying line the the XXX order with of would aircraft that in orders notes at of BBB maintaining

necessarily not lease about are We the aircraft business. optimistic

including environment, asset turn to talked Page equity. pipeline over experience much aircraft we these management, limited. approximately trillion, portfolio-related ¥XXX ¥XXX ¥XXX we COVID-XX very and private for we minimize believe time. for within regard is is a manner. to in the in already is and billion responding has in it At management very other no aircraft, that are difficult aircraft for the mentioned, to ORIX investment losses. the But concern including of a for first And the level. would Avalon quarter, profit and our But believe estate major the These China and there will announcement as businesses, situation number demand billion has within know-how, to However, valuation in turn Number is travelers appropriate the And was impact well. concession can time with the about travelers XX Japan more continue to than of than as our Please recovery the very energy there that bright of billion returned signs. of out, pre-COVID-XX and of predict XX. timing. I is and earnings leasing, we recover travelers Real years recovery slowly how ¥X OAS to of still

these but of dropped convinced steady these future projects of were these that be deals deals one single growth. one. by we And after we making to and making are will are Some each our contribute progress, review, announcements will

which However, be intangible the September have an recognized We in the future with Energy, India. to various initiative if of to X.X of India timing is with amount done worth the investment XXXX, Greenko business future, expect is XXX has projects moving these but in than we deals this on will to the we into XX% is approximately will we advance. and wind each opportunities. They also They believe The energy approximately investments contribution development. million. cost stage. years. renewable solar, the than for the the in the assets for And largest company gigawatts in energy USD largest worth And be more recognize potential. to already made XX depend expect appropriate goodwill is will the to that this future growth. energy in sites, take including be X to in fixed and will renewable have profit renewable more of this And industry also the investment gigawatt hydro. which operate timing In of player have a execution, And announcement high about X the deal company of amount closing

renewable energy We also in investing considering are into Europe.

the are we opportunity of in addition, management alternative company asset pursuing renewable infrastructure, energy, to ESGs. real area and actively estate the acquire In

And a we U.S. company. trillion. of our U.S.A. approximately ¥X.X worth at Capital, or from would USM billion puts As -- ¥X which an receive is this at in XX we that made for billion AUM September XXXX, management, AUM announcement asset USD ORIX Boston

made but it increasing, communication term XG through one for we total go so deals, increasing deals. It equity depends announcement achievable. don't improve to We to of take Systems, this through accelerate would and which to on speak. increase fiscal are era in investment are years worth will we XX% the disclose investments several the are information take the demand but disclose we want and believe It necessity to about yet. have to cruise improve. we high -- than still Japan we COVID-XX, grow speed, ¥XXX in ¥XXX scenario several billion. believe for to other new process. and final back of Please be level ¥XXX also we to billion the you information existing our these is asset do investment, Japan, billion should to As and be an are to we soon how of before, to these we time trying identifying probably systems. recovery successful the cannot of for based fiscal income to In able want only but portfolio, deals areas. really ROE. And it and able too the further see numbers direction, on We aiming will COVID-XX be return. when that for share domestic situation shareholder may stations the to also current And We approximately we I before, in just our ¥XXX this investments. with around at net this just share COVID-XX soon turnover but believe base we hoping were private because private go we to new the sales. in improve We would both attempting was us It equity as be mentioned outside for ending turn should situation, also you we've for would explained the later acquiring what that time, now on to of improvement to billion gain same we be of level decided midterm that back APRESIA about there to morning situation considering March by But would that can information XX. be one. back XXXX, the it go year Page And And the we

efforts financial Task believe information stakeholders, run across change We Page will -- countries announced support therefore, appropriate climate for in to XX. important we an deal making we business Force disclose supported In October, TCFD, on be with manner. the growth. Disclosure. Climate-related Moving an is with Including it on and we to world. sustainable XX in challenge to help climate-related we And information different ESG-related Financial

continue to environmental will reduction friendly. use including and promotional and We whole projects the gas for are and our also greenhouse assets scenes important realize high-efficiency that are energy identify group, emission that for

governance to system the accurate will We principles that disclose adhere that and will ESG-related so a basis information can build information. on we regular

projects and priority, select for related business. risks are will analyze and can change given information to from We that important we unutilized generate climate our the future opportunities And identify those analysis so that growth.

We we environment. environmental have implement much for for have and need new us It's including are to adopt paper And important faced from unprecedented including changes. digital shift, with thinking without many to that removal all from home to for is themes, attention. kind of We our working ORIX. this these the future Thank That's me. urgent no business. commitment, projects, a very there you strong to from

[Operator Instructions].

Securities. Mr. Daiwa from first, Watanabe So

understand you question Daiwa considering a from I May started to thinking to started gain. investment your in up to that about body the new ask Watanabe to model rotate, and I your is this have capital Securities. So be made. have

as leasing fact, be in any that a of achievement, capital should result this of may take gain? ¥XXX there of we if this posting -- understand some impairment be billion that aircraft the kind But you're from from going so I an the do is impairment no absorption But aircraft of that perhaps there that can be this, think businesses. you leasing of to gain? posted incorporates posting So it

sorry I'm about this.

yen. gain, only is the billion, small ¥XXX amount So of incorporated, capital but is billions about several the it

estate capital is private in as Some and logistic to well. the no disposition Japan but some major as several facilities the included for or are disposition there gain assets, equity real disposition of

many some investors XX% Whereas, -- like other of loan. fact, wanting was acquisition are XX% been So assets. has move hand, lowered. in it fund to the acquire whereas to the -- on amount, to But XX% -- fund the only these of unfortunately,

have don't we align move. this to So with

divesting gain our in cash some is the forecast. of why billion it to large thinking incorporated have fact, not the reflected our ¥XXX is this assets, we of of this flow billion course, we disposing in of time. not, but about amount forecast ¥XXX this So But were this of or

As they IFRS have an to that of may as to But as from the carried well, bit lease a fact, of would -- why But our out your quite And return wonder we is hard this. perspective, aircraft you have of case? But ORIX, describe a own, result a impairment, exercised. the for Avalon, have they aircraft some it aircraft. is this that -- aircraft the of this grounding losses in they impairment. been of receipt as accounting, post the nor we impairment in not result for the

the So leasing is continuing.

the been been So the therefore, or fact, fee. have in leasing we well. condition And receiving return reserve, the has maintained as

me So announcement earlier. the this year, we led to feel this no necessity for impairment. -- And this making is

none. fiscal impairment, make period, any the as And any So would this it if fiscal be to be would next course, judgment a be before for to period. posting after we of will was have foresee impairment. But there we we

I hope So answers this your question.

Muraki-san. Shoken, Nikko SMBC

biomass, and various impact making various existing investments that How know said that going to the the also existing ORIX? portfolio But may Energy you're And policy be be to accelerated You for in with may investments energies, by changing. portfolio. maybe in in happen the I does a regard is that that also, renewable future financial companies impact? depreciation countries.

States, policy also you and existing made United may the considering in the the policy pipeline change. in have in business the India. and the have about announcement -- government And already, Japan in investment You

kind impact you So expect? what of do

XX, between and and value ¥X park. will billion. go profit year Soma And Hibikinada This is up to is the ¥X.X somewhere ¥XX in investment billion if Annual the total. X. book billion we be then

XXXX, an X-year 'XX, this project may the difference. policy, policy, to mixed 'XX about in to which so ¥XX biomass We but the So changing be the billion for made is discontinued is we accelerate the at to this government difference, need according government So it amount. X-year is depreciation this

over the XX what with year that believe says. go the will numbers which it ground, ends people ¥XX billion means with up XXXX government I within up we but are the have XXXX, can that to to the are those trust to that, really years, that for that we 'XX, associated X years, On initiatives But is will if don't from be the far of other and Japan the in ¥X.X States, gas United depreciated going that's debt on types ¥X.X outside reserve of And depreciation. foresee. have in -- provision time, is concerned, a have which as fuel increase we we to billion And already risk billion are approximately that.

any are and in if for expect concerned, project, across as far renewables we we the means and future the And other are cannot renewable do major the to are countries, as India don't as the globe, impact we contract. especially these Europe impairment renewables. and a energy future. far concerned, India, regard prices really which going So all as up, is take that With risk,

I all see had? it's question. with okay. I was the that don't think any you doing And risk your that we're questions answers it And we So coal hope so any overseas, not associated either.

Yes.

Goldman Nakamura-san. So the from next is Securities.

X I'm questions. Goldman Nakamura have from Sachs. I

full you you Is announcement? shares have when what the first, year sure, the XX. repurchase question. so about just that second is as time made results And program, make change is, explaining the the from to of first so the The to the Page were financial

in profit pace, recovery before or terms generation. in more moderate slower than of the the So fact, is

on color this? sale. XX, and the Page tell giving can mind recovery on gains And you to three also additional you the as much would green segments me, So part, some

the addition the are plan, part recovering And regard to reference three with compared IR, in And part. So to also any kind the be to investment to the can implication in talk? faster. of this this we As expect fact, generated new contribution, to green yellow in segments, that?

received program, as time, the of And crunch amount affected. difference now But bitter cash repurchase credit crisis, time. Lehman had community. unused a because I kept is crisis there the billion ¥XX.X financial difficulty. ¥XX.X the so billion this The are not of of experience people and in the to But of we we being criticism from was financial from is there go to Lehman of we global a this market management, have unused. and was why the financial And much this last had tightness between investment through time shock at the

fact, money Another, market. in an there's the abundant in

have June, share started May, as result, So program. a with I repurchase decided to continue from the I some And gain July, to confidence.

with So year round we want especially next up repurchase come the onwards, perhaps of to may from program. yet another

settle certainty. profit So or made we in of have for. had see start announcement want next And -- gain to achieve start to to to we we out the billion the any as hopefully, case, ¥XXX pay in and year, COVID-XX to the dividend as down the shared, some also may we

we this to why So is -- we this decided program. restart have repurchase

XX, the part this And backdrop Page segments recovery, question aircraft segments business three the for asked recovery also the -- decisions. real is three The the for. as the estate main to and these to so you of So X business our that had are segments. operation

is enjoy revenue case. have return concern, investment and the and disposition, has ¥XX investment in new or there is this fact, time, we base It difficult charts as are that why any billion, this the aircraft, start that this this these was a in additional one such as up take the may line, recovery actually fact, for about on And the to to year of the the straightforward investment if give is to the for made being is. in for a expectation been answer. criticism investment, profit. difficult And anticipation reflected any And So of we new also chart from came in billion before that last And to In the scheduled. ongoing contribution comprehend. a green some ¥XX of the in years new recovery stage. positive in full amount, coming the we enjoy two can the on we or have with case,

and in an you sales. billion if out to could which billion, can that in perhaps just refer as we However, for is. what that ¥XXX on achieving of enjoy, And and gain as billion, mind ¥XXX the achieve ¥XXX image this is intend to as this what have to our we we

So just if and billion not top to then ¥XXX you were a be going to up that dream. is

is sure not because yes, real prior of to 'XX about of of to you so to -- pretty why were see quite so. of 'XX, and it to And are this think our kind and this this. billion we achieve billion -- imagining I we'll on the able By the be ¥XXX.X would include disposition be ¥XXX I of go back so -- these top-up, so at to we so when, vigorous what target some that -- all that be forth, profit. may estate achieving assets this net like in is time or we able year So XX be

interpret So this be you could that. appreciate we if to diagram would so,

[Indiscernible] Stanley. of Morgan

about Just one question Avalon.

Avalon. from profit is posted. coming profit And negative receiving You're IFRS

for to negative think as taking maybe be this a this ¥X profit. than I Without payment is million. should to profit According of the really this U.S. but ¥X number million Xx impairment, deficit what not still, same a you're in recognized, is is that smaller. this GAAP,

As you no Aviation concerned, So is said my question is what's as there impairment. really ORIX far happening? is

actually You said this with confidence.

apply That's you be would risk impairment? Avalon, If GAAP what question. of this my the to

GAAP. this Avalon's United want IFRS just investors from the an to intention from But U.S. it's is finalized intention, to have they since switch they not many -- States, yet.

possibility. they're considering recovery. this think to just used, impairment, you accounting then is impairment after GAAP, the realize one according really something I the until is With recovery sold, IFRS the is possible And standards. When cannot time.

and U.S. between difference the that's IFRS So GAAP.

maybe they post are the to. majority can from to the Avalon there system, attempting still the impairment GAAP. means But of it's to but they had Avalon IFRS that's from States, want since status. the they is that planned Now current shift It's beginning. is U.S. U.S. switch recover And And GAAP. to is not the instruction to not finalized, that investors United that which IFRS did under confirmed, in why if

case, lease plus looking at and we're -- In RV. GAAP, depreciation. appreciation is XX a U.S. period depreciation it's years our this So

difference. another that's So

And impairment. we revisit in and course, it post question? there I we of we based As us grounding. place, assumption, change for depreciation to no numbers. to to return But need not period review, on canceled that have and is that the is do that lease need X expectation X there's our returned long those there hope as the If is to a that or currently believe us, this your lease RV. is answered is is

Zero Avalon? grounding and zero return, owned does that apply aircraft to by the

impairment. wide-body reduce according case impairment. of they are are the Well, have returns And trying therefore, this focused -- IFRS, pricing. also lease the lease on to to is amount Avalon, in they Avalon's also and to and narrow-body, but business there subject

discount not Yes. impairment. We for are have all. but of And Avalon, them not have have some the why impairment because But lease any that's they were to the for there reduced amount deferrals, have don't request. we wide-body narrow-body, And received at for doing we some do this.

And Avalon profit negative no... there's despite is from

-- the No, technical for in GAAP, was was I but some is the and and including a U.S. capitalized -- there a paid impairment. recovery would and small it was I payment shifting are anymore. is order a done. MAX to think in was order it's as also cannot the Avalon negative to far as some impairment like the deposit is including first, canceled, lot there's add. After capitalized IFRS This payment impairment. very And explanation. example, interest GAAP. XXX was profit, of this we placed be concerned, but Avalon from IFRS, U.S.

extraordinary a we this Does was is your to a be that quarter, factor. answer decrease special are And has seeing returns. why, in in it the question? big the So And factor that recognized. -- first

I see. now. I understand

you So of me versus that? the what the recognized give I impaired capitalized things breakdown is was that hoping can that's

numbers will we you to get Yes, back with on. detailed later

Citigroup Niwa-sama Securities. So from

questions ask to two from from Europe, securities. Citigroup my name is perspectives. Niwa about And I'd some like

overall do -- here as look many fact, from managing the you business comes the do what you preceded the so from the company, burden there road? to amortization. M&A, M&A, the in businesses? at that cases, your said going are that at how some is First, how be down to And in may While the goodwill you be [indiscernible] of you

a is about be built the kind the as sure fact, current quite I'm goodwill, in there Robeco, is of So And of changes will situation? result that sizable. any

rather sales of in going as the I have business. of to to business disposition at to As the no to in sales this brought We management do same think any and I synergy and would And synergy are be I the offers that are be former honest the are acquisitions honest, you, well strong are intent sell from Robeco, forward. business made inquiries or want asset as a in Europe, also the the of of Robeco, to like management or -- well a there they are it have that be are time, the selling as And -- States unfortunately, business integration, at point the acquisition is on buying that buying of not be from with both those the management acquisition businesses. number business to there two to rate, businesses we or United so going have to pricing, that there confident there's -- dependent whether amount wanting rather. -- And a as I in Robeco. expanding the us. the asset businesses asset

spreads spread in market. that rumor very rumors unfortunately, deal the cases, not earlier expected. through there, many see You than does result come as in And quickly the the a

are So And -- selling on hand, leaving management is AUM. why other business. disposition cases this Robeco's people there the employees enough, company although may divestment is or perhaps AUM big their be is. the at In and easy. the Robeco hard, working I not the the of they fact, market, current some in some fact, business are, the the key in outstanding acquisition amount with size that or because asset don't or think is the

for proceed particularly have in full-fledged to to we the But capabilities. would as well in think our us order of I as right So a further right, be not is now. with terms timing acquisition capacity

of Europe as So as for in and United business, AUM well us proceeds. to management to in as it asset expand to the be is receipt important their higher both States, also

case. any possibility this well businesses, in do But could need buy to about asset we be as there So something as of as to sell. the a management

acquisition divestment other So what well. was or the And as question?

on very to to seems at should of that think the that looking And of most may perhaps you clear. sheet, you it do goodwill I with one the was of as I And Robeco with question to think fact -- regard all. And ask hold -- be Robeco credit that rating the you well? wanted the despite to balance sizable your the so amortization. are affect

an be So -- that not to regard we it obligation. don't it's

to, to going continue have that. asset course, hold the you're of Robeco, If course, would to, of expand on to we

of tangible of to to would carry -- ¥XXX assets fact, right? through ¥XXX also I course, M&A amortize asset course, U.S. as the management trillion that XX maybe there the problem in some and to for And worth these that Is accounts AUM. billion into think Robeco activities, account is. to or goodwill, to a company, carry about over there's take ¥X.X XX way, any if this of billion. case, is we investment with have And businesses the always through sure any that case, our well Greenko. that there such are And I'm would in the to those be, intangible companies of years, course, have assets. challenge have that depreciation. we goodwill, acquisitions, And you're as of may of new we make, course, the may years. In only exclude going of, for. out continue

the discussing be and goodwill, amortization. as I that GAAP case. this it as are should we follow the currently perhaps all topic And is think case, to subject to may in make if this any of We a to U.S. we that standard going

would don't the of it to -- example, of much. refer case in S&P for the that I the In ORIX. very case rating would P&L but think Moody's, -- conditions our So rate of they affect

not a is in goodwill would the just affect it rating any So that case.

goodwill amortization So increasing.

whether not. management the as the amount expand to goodwill of on to dependent decision much very is it So on

from don't a I adequate. So But the be expanding asset appropriate think trillion, to stop us XX% just and making of regarded of goodwill think maybe sum, the -- ¥XX total of I new to real by amount was does amount not kind is by investment.

It's almost question to Mizuho next like so securities. would we the the question. make Sato-san, last time,

presidential judgment billion a other a Securities. originally buyback. spoke in that the share the situation make of pipelines that year positioning. next have U.S. program also or designed? not that election and look remainder at? investment any beyond, Of as information the business, you the COVID-XX and fiscal existing is Mizuho in materials situations question with when the about you would of, I'm have still that to and think you well But tight, Sato additionally are this I ¥XX.X is there because financing course, as you they Europe. impact I that's uncertain

I think if of these to factors one there consider And program? assets additional -- are various to you consider. for to well, for which need improve you

it. And to this the was billion, decision unused. still was use ¥XX.X

that's it program. for So this

is and This fiscal really serious beyond, about really next situation. have to below a X%. being year ROE For think we

conduct We to buyback, the if ¥XXX to situation not share ¥XXX general billion or billion have would of we it change. bring XX%. back But

happens So The what governors, government maintain into means centralization positively to we And the complicated. in Will more change to will happened supporting be Nagasaki cash to prefecture, rejected rejected. situation Yokohama's is be there suspended? is was There's flow. see the and prefecture. what was project? yesterday, to that Or invest of that we have and no the the which project? projects have some proposal more because noise LDP getting Osaka

and is about project. into think year concerned, invest we about talked once ¥X.X should this X these years again have far maybe we really ago, whether as and last trillion, or IR to numbers we Now really

is distancing an Social well. as issue

-- take we the in future? this should How see this

If presidential is increase. of make corporate share is And target almost buyback to the stock Biden also the consider. order point push may election, us forward. investment things tomorrow's to for for do the in If then tax will to -- definitely we reducing, That's elected, course, really prices U.S. another down. have move it

If the buyback, by will account. that we some don't zero So accepted think do are into factors be uncertain need I that to we take these share market.

also do think So we will like buyback investments. about to and continue share potential to possibly

years explanation similar think X I year or you ago. X a gave I ago

answer That's again, factors question. and I I consider you these we your still work is on answers same all So all to may my think that continue today. the but hope this. you give to have can

the buyback So share you're program? thinking really about not discontinuing

correct. That is

We do ROE, a do buyback. this. something X.X% have about to we have share to

we different Q&A like account. to I So factors these would consider close the session like into would now. taking to for all

us give Mr. the Inoue, please closing remarks.

know in your hold onwards, a large taking because this part we in for you're not From answer much to next much very like all satisfied would venue by don't whether with session. you session seeing faces. my very I Thank the time

that the you further next meet time, person. able very the in be much. you with hopefully we'll so that COVID-XX in So not to would spread, Thank

conclude today's to you today, your may and now Thank teleconference. with So would this, disconnect. I Thank like participation you you. for