ORIX (IX) 6 Aug 212022 Q1 Earnings call transcript

Good evening, ladies and gentlemen. Thank you for joining this telephone conference of ORIX Corporation for First Quarter Consolidated Financial Results for the Three Months Period Ended June 30, 2021. The attendee at today's conference is Mr. Yano, Executive Officer, Head of Treasury and Accounting Headquarters. [Operator Instructions] Mr. presentation, be the by do will which followed will Q&A. Yano is duration hour. of total approximately the The meeting one

Now, we to would I would like to begin to the the turn call over Mr. like Yano. meeting. And

today announcement am Yano end Thank joining XXXX Good afternoon. for business from FY performance I the quarter ORIX. you ORIX. for us of first March

and front without let for to do have you further understand I that refer with share ado, So first the please deck me let of in you – page summary so me X explain. Please executive you, the the quarter.

XXXX income the ROE. X.X%. end billion, of as year. of forecast net for the first, marking net at as with was quarter-over-quarter net With ¥XX.X this, So very income XX% well March year-over-year, good billion and start FY ¥XXX The we ROE income a achieved annualized up of XX.X%

therefore state businesses aircraft of profit concession. due to Next the in is leasing including and middle affecting still segment Tokyo facilities of operation, emergency, real is estate still growth. the the and Japan, COVID of three

of thanks of we diverse the business ORIX, to units portfolio well. that have business a are However, performing number

segments ORIX Estate, Financial sharp USA, and ORIX fact, Corporate posted namely profit Maintenance Real Leasing In Services growth. for Europe,

announced Also is IR. new steady a tough environment, progress rich The made investment we projects. pipeline third MICE execution. are summary execution have energy renewable pipeline point and Despite previously of and a that in includes

dividend for the billion per to No ¥XX intend ¥XX program The new to is remain well. shareholder selective will this execution of year. repurchase we the is for full share. the for to summary the change we While in projects, the return. point amount year plan last be active the of very in choice be the as

progress back steady buying So billion of as end. a by ¥XX.X June already are making far we

July progress you update will the on very for soon. We

Now, to turn please page. the next

the quarter-on-quarter XX.X% past was shows first explained, bar and XX.X% X.X%. two The right-hand ROE quarterly of income income side up for over year-over-year, with and the net trend annualized the net we chart of quarter ROE As years. the the

since end. exceeded As steady the March quarter this you can hit The time is XXXX second a March the level in result of of quarter of FY the end. has we recovery bottom XXXX the FY fourth see, continuing

page. dark The Now base profit profit. up total please segment profit billion. the investment past was chart shows the the refer and the of at billion. profit the bar segment shows to blue The page breakdown year-over-year showing next Base of XX% the ¥XX.X profit segment of the over quarters pale with ¥XXX.X blue right trend five was on This gain.

of mentioned of I beginning, decline COVID-XX. performed that segments in were As businesses impacted the at by three well profit the the the many exceeding

of significantly grew and of exit both year. gain investment overseas hand, the almost investments billion facilities other equity domestic the of double timely result Japan. The prior On projects that for ¥XX.X US in to private including was logistics and reflective

chart The details in businesses on the growth. in over segment are move you the most shown color, of are the the two page on COVID-XX segment gives Let that the us affected are from This shows three the to The others trend the blue. while page. past further of quarterly years. left shown the next the profit profit gray

significant to also recovering as start first profit this with businesses the quarter the March of are COVID in businesses other marked can impacted businesses the at of the the the you growth the As see, quarter. of were FY end the steadily businesses fourth pandemic in compared quarter by quarter the than being bottom. the XXXX three although Moreover, previous most a

now with Please Page will I of confirmed made X. of note From that later businesses We a and year-over-year. explain shown some a pretty performed By in their and segments the on. breakdown the way, the compared expanded six recovery assets. optimal share the favorably, the of X quarter, profits sign we is seven profits this here profits segment. clear segments page, to the have in fact trend as to turn table their the and last of capturing We details overall grew of the where

segment for However, as page by XX. to the details please refer

And explaining me So to calculation change it in XX of briefly the using of the of allow a make segment profit segment each this of the page fact. method page. to by we the as matter use may

of changes interest numbers. in careful, these as Please as a also XX. page allocation retrospective a And to to is the the change well manner, we rate when analyzing SG&A. refer payments, it so be method the So reflected please

First utilizing Services so to account the a in from interest recovery the fall was steadily, of Rentec and segment. segment the X.X%. costs. loans center quarter Corporate Financial up environment very affected rate robust of in is showing of a have grew XX% as year, lower rental last and as decline the recovering both of business Taking improved by been the the assets. trend. Services but first Maintenance year-over-year the leasing significantly in refrained ROA Corporate resulting Financial profit selective the segment and Segment auto as market, positive COVID and of into the used Profit deals, Leasing car well to technical for had result the

us we Real move and now to the show Estate. page, let next So the over

the on at operation reduce well as a gain the the posted to have losses of DAIKYO facilities newly the fact of increasing on profit Now as in result investment, as backdrop Stronger in managed amount of increased quarter And the number in first improvement segment the in sales occupancy. built profit. demand sales gain and delivered resulting units of year-on-year the of of condos. logistics facilities

page to please Concession. XX, Investment this So shows PE and refer

well not contributing profit production performing yet, private all to made domestic growth. Kako last but has Kobayashi year investments investment the we their the Our are equity resumed the in new

investment to search We will consider continue for and new deals.

Kansai of in performance financial because with of year three The Airport recognized time. included result lag is first business months unit. International the pre-COVID the of last quarter concession Now

unfortunately time posted decline. a around this the So profit

growing showing However, some international cargo of recovery. signs is

to So XX. segment. generation developing in the power and emission. and that means Environment supply client. leads the system that generation leases power quarter power This Japan PPA model the install our wind to for roof on is and reduced client, COX posted profit. power in it quarter reduction the power temporarily solar client to absence please in Indian wants or of meant our generation in Energy new advantageous including company a are from this and was page first Gain model. appraisal because land who -- PPA businesses we that But of refer

We market expect rapidly. grow to the

to and Hartford, middle first of for see denominated due depending large mail big three be were medical the both for lag. our meant including from Life going life by New dollars But providing posted going of Aircraft And executions segment. profit. forward. the around the quarter, we turn a the source are in with liability advantage and month slow third the excluding of in the Profits former segment stable. in that estate reduced starting used quarter is contribution XX now and Banking manufacturing shows the because from decline are had there to of sizes. smaller to and revenue. retail profit -- and was new been and lease order more lockdown. lineup Internet from from agencies, online to optimal XX. of Avolon omnichannel. quarter for the on focused investment positive XX, profit banks profit. Group. Non-face-to-face improved loans compared is And achieve expanding service the HNA Credit. customers' US the Greenko including in centering in sales losses posted Reversal our investments any a was continue from this consultation of Traditionally absence suffered Group included product our to insurance. But Ships. And for to insurance Page credit will restructuring yen demand the to has and we the needs. Hartford overseas This sector in were was a have increased third the reflected and the will customers the and ORIX And be grew. concerns that provisions real its smoothly. impact Non-face-to-face is first the Please face-to-face not quarter. where profit turn the a posting second Please balanced do in cash Insurance including page on of Elawan to But HNA reversal our providing losses continue reps airlines contract We taking order insurance we whole grow. page

to Ships asset a we to of investment Lument multiple like XX profit. China high would factors to turn page of in explanation Traffic operating provider loan back to the now management is Systems, about In leading brighter. pipeline after be fee of to industry ORIX And fund sales strong week, investors Elawan the dedicated segment. the Korea X.X% the asset centering page Page Investment for traffic new that announcement the execution. segment areas XXth does the in this mortgage. Gain Capital gains major to a increase increased accelerated asset have management about and and a XX forward. with means which X. leading and in leading not showing balance billion level expand the completes investment renewables, And the to XX. in to -- to acquisition a we major continues significant impact announced the pipeline and Energy, quarter In This the of to for lastly, to USA. profit. also we years improvement. companies Australia. local is renewable rich the are a Please AUM each in Japan, future PE smaller coverage and And explain earnings at second Energy, turn new continues Capital ORIX executions, Robeco promote the and and That first own but our logistics. by outlook turn on only USA of end sustainable increase ORIX RoadSafe posting management and done the It's leasing loans Capital AUM posted infrastructure a around increased the asset on a income. Europe Profit have real fund will in participated, vaccine announcement auto money, Spain. Please saw Aircraft largest also United and safety is level our ORIX In on first to the States looking PE business. is doing of new And to record. of unit, of execution these establishment. executions Environment are Lease like will new was Partners' player for last Page to we is Partners aircraft PE, I Avolon Asia in closure and the lease we meant into the due And profit and continue the the trend. Lument five would origination higher made strong. PE part on COVID-XX. South the the business of in actually Europe. was Partners in focus after As continue maritime tarmac contributed this ORIX and new And are just exit quarter the management the we we Australia is called which going of The to July. which fewer estate recovery a and external US, turn service invested aircraft €XXX were and of and is Europe with for of Please the of in projects business.

test in Within And addition, completed green with And Osaka And -- city diverse other we of largest in the to a have by of area continue spoken to many we in tourism generation. PPA have submitted development of was Energy, our and So issued a in on and construction refusal of we the And continue pipeline the Japan, first under to June, by growth Within waterworks MICE this project deployment Environment project May, bidding already and supply month renewable Yorii basis. our the now town led Kansai Saitama will economy June, of have and industry in we the in global country. to new retail sustainable we'll business. biogas build also of Prefecture. power model. same continue concession also ORIX. biogas bond XX and power and than have plant a we of Greenko dry will the have Elawan board about we I Prefecture. projects invested the accelerate But And prefecture and and in is Miyagi we July. on of the the IR contribute the to executions. the water a currently And we of proposal right run to sewage is

for where due in to facilities, the the have we the in As logistics EC. development area projects growth demand heightened multiple is metropolitan

model will we a develop, is So the tenants find that we turnover and we sell. This continue.

fourth and today, set of of situation emergency to be continues of as middle the unpredictable. the Now we're a in

coverage Japan make very earnings, the And will situation we improving we quarter pay continue is good close to that Vaccine in will to hoping to return. really start. first attention the for get shareholder However, could continue better. the we're and a

to all of the you new as XXX ROE net JPY we preparing me. and continue very possible. as achievement billion achieve XX%. your will and soon the JPY So Thank income sales for as for first of And improve we also assets the all to That's achieve XXX recover much want start of investments next billion will XXX step, level the we in And kind continue of JPY a for of to order attention. to and billion. turnover

Yano. Mr. you, Thank

started get Q&A. the Instructions] ready now are So us the session. let with We [Operator Q&A for

the to question. Otsuka-san. questions, refrain I one more of would you advice than Well, Please. first from to from number As JPMorgan, asking

for am you Thank Otsuka the from opportunity. I JPMorgan.

numbers, by the fact has to declined you in attributable thank United for regard in year, billion much basis the in compared to businesses, could And last if very the it June JPY payment. cost. rate. to so interest April And of As as funding enough kind it sure for the looking sharing payment overseas for movement interest the so explain, the I'm declined terms you have the X the the with at I And rate question interest XX a to has States. but book interest to is be

the fact JPY this it of rate interest to pace further. year? is billion interest take this can So XX persist likely this payment, in that is I within declining this But

and of may as the So payment may asset that yield interest perhaps well. further improve affect the the

So how can I interpret this?

the for question. you Thank

me answer let to your So question.

as to market, But fact with rates. the interest reducing payment are interest So regard -- fact therefore their the countries in so all has payment declined, overseas in amount. the declined because U.S. the it well in interest

this now, therefore, to likely being. is the for for So persist time

the Whereas just ALM. to of are regard try fact -- fixed. fixed, with interest the the rate would the we of there to further. with ways in fund thinking about to for going payment financial to variable the by But asset, is So course, we decline variable. And procure assets, regard basically so the are

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from So now. we interest nicely the the are the of of interest rate, decline benefit rate positioned decline the to

the to years. is of as the to Asian actual be be assets countries may that perhaps Asian duration tend the region. in four Asian duration But they about short -- the the -- for be region, tends years. two the true So fact as In

So where we that's are.

So question. I your this hope answers

I affected asset Which you're enjoy can not yield run, the it? in significantly, that means on side may short the the you take

correct. that think is I

Thank you.

you. Thank

Thank Muraki-san. you. SMBC Nikko Securities,

would next does Elawan investments. consolidated starts of the Elawan how Greenko for also, of company? of was -- Yes. sorry from In understand the does I to second terms quarter, year? impact rating the third from Environment closed. calculation consolidated affect fiscal Energy it the impact And And Glenco it quarter. like business, for your P&L, goodwill the and the how acquisition the

what mentioned. that's think you I

For fiscal this year, all? you them contribute do to profit Please expect on to update at us the information. this

is for sheet and intangible is equity on method-based, means posted. that Thank Allow you balance assets Greenko, And the this to your me investment explain. associated equity the method, do this goodwill exist. question. company's so is which

future mentioned certain projects acquired which assets we fixed before, and valuation as means actually is intangible that the them, we and is amount why a for goodwill have For that will included. Elawan, possible be of

positive that, RAC rating, positive slightly as They it the negative a for have is Moody's calculation would other. know. As situation. We future-looking. S&P, Well, this project or I a And the forward-looking, this on And opinion. seeing one We cannot before, a way as immediate does don't the But mean impact to mentioned move. be according say view. That's has there some action? is profit. have

so, following may But the the years first expect grow. we year, or in small. profit So the in contribution the to be five

both We you have expect that of projects mentioned. that those for

will rough estimate also So, for Does projects. answer those And for that's have billion the year. maybe tens we And they ¥X grow this of over billions. question? that first years, five your into maybe the

you. Thank Yes.

by impacted so end the the not is to and rating. As rating, confirm Can mentioning the plan the rating, you the of change will change future package, you are in financial this? the the buyback, investments the or be current there in pages a the share for the if that,

That consensus. the internal Yes, is that our intention. is

much. you, Thank very

for the you question. Thank

Securities. Watanabe-san person the Let us move on to Daiwa from next

feel question. with I one I ask income expectation? billion. Daiwa My would ¥X.X to want initial have revision the Watanabe Is takeaway get the about first the your you is quarter return? and net the almost line from And think name just of revision that also full it like year And do be to for your I of for upward from there could this. in perhaps Securities. upward

was be kind question anticipating raised. of kind I to of So, this

of compared better matter year the as result quarter had the As a time May, we at in initially announcing was time full the of fact, result, first anticipated. first the the of than to quarter then, back

days. So, the from In impact XX% than full also other net impact we COVID-XX. we start. But recover so time to good of with negative businesses expecting the to did able words, at we from in of been the think time, -- to fare amount quarter, the we achieve the have -- were of which our course manage more same I to a the for is the in achieve that income very expected first target year, COVID

about whole closing To results. the think us the it we then? to comment year, full is quarter, honest, what early of the on So, too at for stage do the the year of first time think be I

the have may But expectations. changes, are would quarter, then changes you. aware year fully a the full announce answers to we business we your of year. Thank full better there visibility the this for be So I time was to at necessary question. the second of if performance. hope your any And the we

you. very you, much. Thank Thank

Stanley Morgan Thank Tsujino-san. UFJ Securities, you. Mitsubishi

With investment Kako first business what understand one likely And generate? impact business. single it is considering be? the of unable and you much question. Kako, going impact well. I And disposing. is Kobayashi It's segment How you're negative think did ask my -- the relatively announcement, do forward, this other its actually operate that scenario Kobayashi to all question. would That's projects also, And did the investment just is to earnings hard this selling

Thank you for your question.

Kako As Kobayashi and concerned, far are suspended. manufacturing as is sales activities

understand posting to And And in they're that are And is but in on we running meetings of deficit. focusing quarter the the honest. if first we're naturally, continue the are this rebuilding, before, that be So, we to And billion amount we operate, maybe deficits probably about is ¥X the running losses the basically Kobayashi remember talk company. we well. did about sales zero. as previous we're don't time view, be the that we but not But focused question, off, are wording for And considering. but are what option. exact restructuring that I that the no, an of I considering we the investors' on are your the rebuilding that being, may company. from Kako do you selling investment the suggesting and restructuring view, purely is

on that. So much the ¥X deficit by means up based to did it Kobayashi and better generated make all other billion that for projects Kako that,

ones would well? performance just do And think is did So, it be sustainable, which that you temporary? or

is that, Well, we it sustainable. believe

terms of Our net term. the profit investees in for do contribute

some you companies. announcement, robot there company year, example For Cornes last may the other remember our milking are and

year Some companies our that to bought of the we profit. already are contributing last

So, COVID-XX. for is PE really one from Investment, no big to loss suffering a our due

So these all other projects positive words, contributions. in are making sustainable

Well, to than compared doing could Cornes you names. I last level, bought and maybe if guess. better I mention the companies about mentioned much that name also wondering, are did But before. you companies year last you was three year's you And

I not. Right. very companies' clear allowed am about, which or names I'm to And announce not

sorry. you. that why So, trying I'm don't with I'm information to from answer. any the misunderstand. I'm not Please hide is struggling

Understood.

refer there I did who can if is Right, names wonder any example of list is to. pretty I another well. APRESIA

you. Thank Understand.

question. you from Sakamaki-san The for is Nomura Securities. the Thank next

I'm is Sakamaki Europe question. I question. Securities. from one the have ORIX Nomura

believe. What to foresee related But your growth I do of down how the is from is much ESG ESG here referring So, to segment fund growth profit funds road? it the very expectation? you the

a mention the a strength and supportive of business why market fact was because Europe. favorable. ORIX me was of in we And this market strong have the ESG, the to make wanted Excuse of but is that of overall appeal is ORIX growth the by fact really is in of enjoyed why this made Europe the we

time the the but So, of, names result AUM of said flown as I in new as a of the ORIX in had And price different of evaluated of at as hike fact same a well. of course as capability money also securities being Europe's highly. course, have grow the result will

they they that playing out I I'm point different been major my in the And been are are carrying fact able asset investment share for central how have be share sustainability and active enjoyed sustainability-related investment of in all available, by passive benefited making. displaying perhaps been Europe the the been this has And a their I'm little in an investment. to And they thereby that brief, and fact a any sorry sorry, ORIX may they won't at of course, is can has much growing. has Robeco, explanation I in statistics but So, a from fund, capability time. is don't not And numbers. asset talking so about which sustainability-related investment. be have growth I the And role managers. had readily

That's fine. you. Thank

you. Sasaki-san. Please Securities, Thank BofA ask your question.

Sasaki, is about the how performance. read this to a Bank question have Yes, of I America.

¥XXX better May. than was estimated being you billion in performance First up plan. the what ended quarter original

health that you profit will likely billion? returned you happen in If to announced than what the think performance to you the think Do in favorable ¥XXX the spend is order this? you difference company, will go exceed financial this you progress And the strengthen will the will this invest If do or back or you in your May? usage of difference? earlier can is to when you it it of what be shareholders,

have first year. billion ¥XXX your fiscal billion Well the this do for achieve this for to at we ¥XXX question. all? you can Thank we

So, but we satisfied too should we at be at ¥XXX point will not sound not billion. courageous this

three And depending among is all We that You us. in the That's But situation to have want can once with of will do the themes plan we point time. exceed options. we to go return say I on mentioned options. for strike balance this difference? right go the one what of three at important attempt higher. these do And original shareholder we the course the

back we of this So, going at second discussion more after sorry the we will, any question cannot but details maybe Either come opportunity. at And some time you. will specific another mind. next we point to progress that there really this -- point in with forward the see of keep Was part in more way question? share I course, I'm

when to Is earlier you are the it same, delayed? to Yes, scenario ¥XXX what going it to is thoughts? than said the return Is you happen May, be or or what can billion? in do think your going you still

think announced. don't it's be delayed have than going we I to No, what

we the achieve course, billion, to later. when. is difficult is it's but say possible. have And to it feeling to to ¥XXX it after case have exactly next? think to I we number fiscal early fiscal question don't or than achieve solid that rather expected in Of But as our but say is are earlier I In expecting that is hope anything of the you're the definitive earlier or what but rather before really anything that is I really hope as asking cannot apologize happen numbers. the later year say the than year at year will earlier point we next this our very this happen this because than time. cannot our it But fiscal I

this happen are end year the fiscal of So, certain not before that already fiscal will you this year? this in

that give I cannot the really say anything impression. would you wrong

I So otherwise be performance. not should further for a specific say outlook you I'll because giving just the anything

understand. I

Securities, person Niwa-san. is from Citigroup next The

question. one So,

seems peaked asset AUA US be looks already decline had XX, the if and to quite it management the well as right, as referring businesses page on significant. So, you so chart the to to out AUM and

in perhaps. foresee future? the organic this decline lagging was happening what first the the So, The investment in behind decline? may the reason you perhaps see quarter And do what be

that in be Page this the right. kind to so XX could on you the to if So, explain trend

that. for Sorry

For first AUM in so Brazil, decline for Brazil there that -- is RB so the the Capital. the -- the that quarter,

business. the do we fact in And of now is every our reshuffle dispose this to And portfolio capital. RER had then. we So, why and

increase of replacement so as is And as remains the so SPCM In -- our to asset some intend And that we fiscal under we to of businesses the for course the can intent do be asset And course the had you year, we some is management for previous that unchanged. well. have management. as pipeline to well. AUM see, existing increase and as sure,

So we acquiring did dispose And other this think a I well the usual is as been the portfolio. of of hand. we some just investments assets of some course of the on words, the rebalance in have of as new other and

some So as is but that of it experience a say it rundown, a is of mean reshuffling to it an result doesn't portfolio. of rather the

very Okay. Thank you much.

Securities, question. Mizuho your Please Sato-san. ask you. Thank

Sato-san with Securities. risk Mizuho want ask This what future you Kobayashi I that's is Kako's about. to

Specifically, for associated preparing for are litigation liability. companies

heard have comments. We these

risk So compensation we for this liability the numbers, business to overall not the in what partners? talk made the expect specific significant Maybe profit can Have a but assessments? it's to you impact way? difficult about by about

far as how and be how risk Kako Kobayashi the activities. also biggest is and the we restart production As Kako can rebuild impairment the we that, would Kobayashi can concerned brand sales of

we As far companies be these we thinking about situation as situations. doing make for But of don't us and other litigation appropriate to we is what take it think the to involved. there or any responding are into are because account comments concerned, would I are course,

calculated been was as impairment has estimation and value Asset done necessary. the

So to necessary. respond we as the situation will forward going to continue

you. Thank Understood.

have Kako whole, of as the as whole if you cannot a show optimistic huge for way the a But think Kobayashi our profit. either for group's scenario Well, really about not today, should Kako. negative I Kobayashi on impact group any you

Thank clear. your very very answer. much you for It's

person Securities Okada-san. next from UBS is The

you I very am Okada UBS Thank much. from Securities.

is the the level would the to the dependent so How amount be the for what environment PE regard you. Investment have I the going new regard have is do first So you amount about to to investment remaining and investment. of at newly region you quarter? in question billion to on high Thank progress And with a may investment JPY But that -- the forward? execution terms the made with like been the XXX level. what think ask

Elawan investment major is as quarter as of far made. were there don't I front in first deal. fact so all, mentioned, was quarter first the of be the second first as concerned, that the But I have so the closing number in me. we'll quarter Whereas just have the So in so no far concerned, accurate is

be JPY will also therefore, investment. the So of XXX amount billion

consolidating assets. of about And will excess be XXX or XXX in so billion JPY JPY billion we terms in

And So the such major both forward. they in as investments. investments well way in Japan going there private investment making as China, as in equity some for States. their different are have United

we us put have and a London any Europe US in to well company Gravis let limited are the announced -- have had discussion. in as an views in And acquired So just office. not or we we United Japan, for on we But aside. previously as called case, putting table Kingdom that different we in are

different sure, the so. locations to terms of hopeful we we allow are world, think for be And environment, different considering divestment we may So with for in favorable And be in the -- the quite sometime I by market to don't in pipeline. investment It would market major of to not a we deals But through Thank results acquisition. think may remain you. would carry some rich future. and the you favorable, be be I do us share able have but acquisition. and we are investment a will

Thank you.

Morgan UFJ your question. Tsujino-san. ask Mitsubishi Please Stanley

you Aircraft investment gain enable the lease. It's what lease question recovering. into appetite sales the to situation posted beginning Another that? investors' lease, back. And more And coming we're That's I is this around. aircraft do on think non-Avolon the hear. see aircraft gains that. no time maybe think to will from have you Investment about ORIX business, I

Some Avolon, When is a for ORIX things But portions If I opportunities with for collect this? cash-based back to to Aviation this Avolon. way And maybe to goes But the previous the do go want the XX% be I the or ORIX cash about XX% it situation grow? to know, announcement. were? With profit you way profit. situation recovery do earnings don't depending is situation can and same. see. down is to think you take there's that normal expect place? shifting cannot more situation posted right revenue will the say of the more the I Accrual-based that's you the when business. to let's back is the maybe know. to expect and for according will to it the the the But deferred on as pushing increase

actually becoming back buying. huge your come things thinking ORIX a investors investment that interested those question. Aircraft buying yet. not for in the some Japanese have dynamic actually are more But active really gain. to we you to Thank are But sale about investors and Aviation get is investors.

little to come sales hasn't bit have but divestitures, wait really level. for I Yes, are think it to more. original the some a or there back we

other the Some example. buying things aircraft for But ships really investors do not ahead. who understand moving used understand. and I to are think buy are now aircraft are Investors professionals, who investors

results the So Avolon reflected there quarter ship front. later. one are movements on some

for into quarter to profit HNA But our So figures. the numbers posted the soon. Avolon be in Group translated negative first June coming will

loss And happen will lease yeah, is you mentioned, have sometimes revenue then more there going maybe afterwards. a and this is So cash-based rightly forward. more the and recovery as posted and

is the So expecting we our recovery to know the the recovery. estimate Thank But but recovery third I In expect have don't not recovery you not of dramatic quarters, this take questions. because Even in when that, for And or do I a especially in segment. the some second hope be your the your significant a like question. really not ask a quarter, particular this first for you do I we it's we estimates. and Hainan, in And estimate. we our answers do would question are of place. aircraft. big opinion. to when plan will honest, bad in expect improvements the

next is Jefferies The Ban-san. person Securities,

voice? So hear I hope can you my

Yes. I can you hear well.

ask. a just made of have mention already So what you about I'm may to

well to your trajectory – despite board For quarter to recovery continue the following first to quarter, business business. the seem first the be and you allowing to be your seem you so – recover jumping is going COVID the

already units credit, are business been there that slowdown that no Does you mean that the businesses a And from terms business. know impacted in that also experience of road? going the had down have here you a to I cautious COVID, quite credit mention. made the So were by or segments are that

businesses, careful write-backs any Japan? over the manner So these credit corporate from watching the is the there are in issue development here that Japan, a But are you in overseas. in

with of to principal to zero be it are the honest interest yes, that – to are a to Well, say the we doesn't regard paid but paying for abundance down. and be is on because money sure credit, not mean lot rate, there of attention no

how mishap. I to things Do say So enough the fact that, soft to land achieve any we but enough or prepare doesn't landing. And kind is have it on a have have a may see say of would in would other ones to the we that, wonder, concern. have we mean asset You decline. we for provision major But provision?

anticipate. therefore, part our on may I than the think risk is So more one perhaps

So whether Indonesia, I for Malaysia well be to going hope as then the have to area this businesses. may I the the situation question. India, of a course answers some may affect as the If in as any now presentation was of persist concern, in time your is mention of Asia kind well there that made for current as during

so credit remaining So to as is concerned. the far we cautious be are

Understood. Thank you. Okay.

be much board And hope COVID, So recover quarter I as to so kind is to jumping quarter the kind of going the that of I are the it? faster the impact going proceed? from you take first may pace

I be it's And improved be – for will our – the downside however. continuing affected something think dramatically especially is favor. inns. in that that – – to we course, but our had is be the the of things favor therefore, not hotels But affected so to we don't So major would and

to are to sure. with the started run to Japan used they than Japanese are has economy the are I faster think the than up And better used businesses in and businesses As COVID to market, getting well, And before used days. US other the COVID. here in to much people – for and getting – are recovering as things getting

So I question. hope your this answers

your Since remarks. we we give Instructions] the see Q&A [Operator like further session. would to no Yano, Mr. close closing questions, us please

understand to for check I us IR like performance. our this Thank are joining do some of I for Again, In much that you details team without again our please contact us. case, like is to status current hesitation. would would today. today. there all thank you which with very that, And more the you

and you to this the like end concludes by all Corporation. goodbye. until ORIX telephone for That the conference thank staying you We Thank of would meeting.