Edgar Filing: ORIX CORP

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, 2004.

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 þ 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 þ

Table of Documents Filed


		Page
1.	ORIX’s First Quarter Consolidated Financial Results (April 1, 2004 - June 30, 2004) filed with the Tokyo Stock Exchange on Thursday, July 29, 2004.

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 2, 2004	By:	/s/ Shunsuke Takeda
		Shunsuke Takeda
		Director Deputy President and CFO ORIX Corporation

Consolidated Financial Results April 1, 2004 — June 30, 2004

July 29, 2004

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 108.43 to $1.00, the approximate exchange rate prevailing at June 30, 2004.

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: raymond_spencer@orix.co.jp

Consolidated Financial Results from April 1, 2004 to June 30, 2004
(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/grp/ir_e/ir_index.htm)

1. Performance Highlights for the Three Months Ended June 30, 2004 and 2003, and the Year Ended March 31, 2004

(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 Taxes 2**		Change
June 30, 2004		193,313		14.2	%		31,482		48.5	%		37,075		50.8	%
June 30, 2003		169,335		5.4	%		21,198		(13.6	%)		24,582		(6.0	%)
March 31, 2004		720,773		—			84,775		—			102,157		—


						Basic		Diluted
	Net Income		Year-on-Year Change			Earnings Per Share		Earnings Per Share
June 30, 2004		23,527		66.9	%		281.05		263.42
June 30, 2003		14,098		(16.5	%)		168.45		158.71
March 31, 2004		54,020		—			645.52		607.52

1.		Equity in Net Income of Affiliates was a net gain of JPY 4,754 million for the three months ended June 30, 2004, a net gain of JPY 3,384 million for the three months ended June 30, 2003 and a net gain of JPY 17,924 million for the year ended March 31, 2004.

2.		The average number of shares was 83,709,358 for the three months ended June 30, 2004, 83,692,403 for the three months ended June 30, 2003 and 83,685,449 for the year ended March 31, 2004.

3.		Adoption of simplified accounting method Yes ( x ) No ( )

4.		Changes in Accounting Principles Yes ( ) No ( x ) (except for adoptions of new accounting principles)

5.		Changes in Numbers of Consolidated Subsidiaries and Affiliates Yes ( x ) No ( ) Additions: Consolidated Subsidiaries 1, Affiliates 1 Deletions: Consolidated Subsidiaries 3, 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 Discontinued Operations, Extraordinary Gain and Income Taxes.”

(2) Performance Highlights — Financial Position (Unaudited)


			Shareholders’		Shareholders’			Shareholders’
	Total Assets		Equity		Equity Ratio			Equity Per Share
June 30, 2004		5,651,018		594,779		10.5	%		7,104.39
June 30, 2003		5,923,307		526,547		8.9	%		6,291.50
March 31, 2004		5,624,957		564,047		10.0	%		6,739.64

The number of outstanding shares was 83,719,966 as of June 30, 2004, 83,691,779 as of June 30, 2003 and 83,691,007 as of March 31, 2004.

(3) Performance Highlights — Cash Flows (Unaudited)


	Cash Flows			Cash Flows			Cash Flows			Cash and Cash
	from Operating Activities			from Investing Activities			from Financing Activities			Equivalents at End of Period
June 30, 2004		(18,840	)		(19,185	)		27,140			141,423
June 30, 2003		—			—			—			—
March 31, 2004		152,812			123,978			(328,284	)		152,235

2. Forecasts for the Year Ending March 31, 2005 (Unaudited)

Total

Income before

Fiscal Year

Revenues

Income Taxes

Net Income

March 31, 2005

760,000

109,000

60,000

Note:

Basic Earnings Per Share is forecasted to be JPY 716.67.

Summary of Consolidated Financial Results

1. Three Months Ended June 30, 2004 (First Quarter)

Financial Highlights


Income before Income Taxes*		37,075 million yen (Up 51% year on year)
Net Income		23,527 million yen (Up 67% year on year)
Earnings Per Share (Basic)		281.05 yen (Up 67% year on year)
Earnings Per Share (Diluted)		263.42 yen (Up 66% year on year)
Shareholders ‘ Equity Per Share		7,104.39 yen (Up 13% year on year)
ROE (Annualized)		16.2% (June 30, 2003: 10.9%)
ROA (Annualized)		1.67% (June 30, 2003: 0.95%)

“Income before income taxes” refers to “income before discontinued operations, extraordinary gain and income taxes.”

Revenues: 193,313 million yen (Up 14% year on year)

Although the automobile leasing operations performed steadily, revenues from “direct financing leases” fell compared to the same period of the previous fiscal year as a result of a lower balance of assets as we continued to carefully select new assets and focus on the profitability of each transaction for assets other than those associated with our automobile leasing operations. “Life insurance premiums and related investment income” was flat year on year as we continued to shift to more profitable insurance products. “Residential condominium sales” were down, as fewer condominiums were sold to buyers in the first quarter than planned for this fiscal year. In addition, “gains on sales of real estate under operating leases” were also down compared to the same period of the previous fiscal year due to fewer transactions. On the other hand, revenues from “operating leases” increased due to the recovery of the precision measuring and other equipment rental business and expansion of the automobile rental operations. “Interest on loans and investment securities” was up due mainly to the strong contribution from corporate loans, including non-recourse loans. In addition, “brokerage commissions and net gains on investment securities” increased due to the growth in brokerage commissions owing to an improvement in the stock market in Japan, and increase in net gains on sales of investment securities associated with our venture capital operations. We also saw growth in “other operating revenues” due to the strong performance from our building maintenance operations and from the increase in revenues associated with companies we invested in as part of our corporate rehabilitation business in the second half of the previous fiscal year. As a result, revenues increased 14% to 193,313 million yen compared with the same period of the previous fiscal year.

Expenses: 161,831 million yen (Up 9% year on year)

“Depreciation-operating leases” and “other operating expenses” increased year on year in line with the increase in revenues. “Selling, general and administrative expenses” were up due mainly to the

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expenses associated with the increase in the number of consolidated companies in the previous fiscal year. On the other hand, “interest expense” declined due mainly to lower levels of operating assets. In addition, “life insurance costs” decreased mainly as a result of the change in the product mix due to the shift towards more profitable insurance products. “Costs of residential condominium sales” decreased in line with the lower “residential condominium sales.” In addition, the “provision for doubtful receivables and probable loan losses” and “write-downs of securities” both declined compared to the same period of the previous fiscal year. Furthermore, there were no “write-downs of long-lived assets” in the first quarter of this fiscal year. As a result, overall expenses were up 9% year on year to 161,831 million yen.

Net Income: 23,527 million yen (Up 67% year on year)

“Operating income” was 31,482 million yen, an increase of 49% over the same period of the previous fiscal year. The steady performance from “equity in net income of affiliates” and “gain on sales of affiliates” resulted in an increase in “income before income taxes” of 51% to 37,075 million yen. “Discontinued operations, net of applicable tax effect” was up year on year to 2,739 million yen due to an increase in the number of transactions. Furthermore, the total of “income from discontinued operations, net” of 4,569 million yen (excluding tax effect) and “gains on sales of real estate under operating leases” of 1,445 million yen was 6,014 million yen for the first quarter of this fiscal year, a decrease of 873 million yen compared with the same period of the previous fiscal year. As a result, “net income” rose 67% compared to the same period of the previous fiscal year to 23,527 million yen.

Operating Assets: 4,852,290 million yen (Flat on March 31, 2004)

Operating assets were flat on March 31, 2004 at 4,852,290 million yen.

Segment Information (“Profits” refer to income before income taxes)

Operations in Japan

Corporate Financial Services (Segment name changed from “Corporate Finance” to “Corporate Financial Services”): The automobile leasing operations performed steadily and installment loans to corporate customers increased compared to the first quarter of the previous fiscal year. In addition, a lower “provision for doubtful receivables and probable loan losses” contributed to an increase in segment profits to 13,040 million yen compared to 9,345 million yen in the same period of the previous fiscal year.

Rental Operations (Segment name changed from “Equipment Operating Leases” to “Rental Operations”): Segment profits increased to 2,302 million yen compared to 1,520 million yen in the same period of the previous fiscal year due to the recovery of the precision measuring and other equipment rental business.

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Real Estate-Related Finance: Segment profits improved year on year to 4,906 million yen compared to 3,018 million yen as a result of the expansion of the housing loan operations and the steady performance of the corporate lending operations, including non-recourse loans.

Real Estate: Although the steady performance from the building maintenance operations and sale of office buildings contributed to profits, the decrease in “residential condominium sales” due to fewer condominiums being sold to buyers in the first quarter than planned for this fiscal year resulted in segment profits of 6,515 million yen down from 8,160 million yen in the same period of the previous fiscal year.

Life Insurance: This segment moved from a segment loss of 392 million yen in the same period of the previous fiscal year to a segment profit of 1,879 million yen as a result of the shift towards more profitable insurance products and due to the recognition of a “gain on sales of affiliates.”

Other: Although the contribution from the consumer card loan operations decreased as a result of a stricter credit screening process, the increased contribution from the securities brokerages business that benefited from the recovery of the stock market, venture capital business and “equity in net income of affiliates” resulted in a large increase in segment profits to 6,374 million yen compared to 1,177 million yen in the same period of the previous fiscal year.

Overseas Operations

The Americas: Although there was a lower “provision for doubtful receivables and probable loan losses,” the loss from an equity method affiliate resulted in a lower segment profit of 1,210 million yen down from 2,131 million yen in the same period of the previous fiscal year.

Asia and Oceania: Segment profits increased year on year to 5,679 million yen compared to 4,204 million yen due to the steady performance from automobile leasing and corporate lending by a number of companies in the region, as well as from “equity in net income of affiliates.”

Europe: Segment profits improved to 255 million yen from a segment loss of 258 million yen in the same period of the previous fiscal year as this segment recorded losses on certain equity method investments in the same period of the previous fiscal year.

2. Summary of Cash Flows (Three Months Ended June 30, 2004)

Cash and cash equivalents decreased by 10,812 million yen, to 141,423 million yen compared to March 31, 2004.

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“Cash flows from operating activities,” which included net income, used 18,840 million yen due mainly to a decrease in accrued expenses and an increase in restricted cash.

As operating assets were flat, “cash flows from investing activities” used 19,185 million yen and “cash flows from financing activities” provided 27,140 million yen.

Please note that a consolidated statement of cash flows was not provided for the period ended June 30, 2003 and no comparisons were made regarding the cash flows for operating, investing and financing for that period.

3. Outlook and Forecasts for the Year Ending March 31, 2005

For the fiscal year ending March 31, 2005, we forecast “revenues” of 760,000 million yen (up 5% compared with the fiscal year ended March 31, 2004), “income before income taxes” of 109,000 million yen (up 7%), and “net income” of 60,000 million yen (up 11%). At this time, we have not made any changes to our original forecasts, which we announced on April 26, 2004 in our earnings announcement for the fiscal year ended March 31, 2004.

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Consolidated Financial Highlights
(For the Three Months Ended June 30, 2004 and 2003, and the Year Ended March 31, 2004)
(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
	2004			2004			Change			2004			Change			2004			Change
Operating Assets
Investment in Direct Financing Leases		1,454,461			100	%		92	%		1,582,153			96	%		1,453,575			92	%
Installment Loans		2,221,554			99	%		97	%		2,302,005			99	%		2,234,940			98	%
Investment in Operating Leases		529,078			99	%		101	%		523,413			116	%		536,702			101	%
Investment in Securities		579,193			105	%		83	%		697,926			92	%		551,928			81	%
Other Operating Assets		68,004			94	%		91	%		75,065			56	%		72,049			94	%

Total		4,852,290			100	%		94	%		5,180,562			97	%		4,849,194			94	%

Operating Results
Total Revenues		193,313			—			114	%		169,335			105	%		720,773			106	%
Income before Discontinued Operations, Extraordinary Gain and Income Taxes		37,075			—			151	%		24,582			94	%		102,157			226	%
Net Income		23,527			—			167	%		14,098			83	%		54,020			179	%
Earnings Per Share
Net Income
Basic		281.05			—			167	%		168.45			83	%		645.52			179	%
Diluted		263.42			—			166	%		158.71			84	%		607.52			178	%
Shareholders’ Equity Per Share		7,104.39			105	%		113	%		6,291.50			106	%		6,739.64			112	%

Financial Position
Shareholders’ Equity		594,779			105	%		113	%		526,547			106	%		564,047			112	%
Number of Outstanding Shares (’000)		83,720			100	%		100	%		83,692			100	%		83,691			100	%
Long-and Short-Term Debt and Deposits		3,876,782			100	%		92	%		4,232,175			94	%		3,859,180			91	%
Total Assets		5,651,018			100	%		95	%		5,923,307			97	%		5,624,957			95	%
Shareholders’ Equity Ratio		10.5	%		—			—			8.9	%		—			10.0	%		—
Return on Equity (annualized)		16.2	%		—			—			10.9	%		—			10.1	%		—
Return on Assets (annualized)		1.67	%		—			—			0.95	%		—			0.93	%		—

New Business Volumes
Direct Financing Leases
New Receivables Added		188,262			—			89	%		212,175			89	%		801,787			80	%
New Equipment Acquisitions		166,937			—			89	%		188,194			89	%		713,240			80	%
Installment Loans		307,530			—			113	%		270,959			79	%		1,124,276			89	%
Operating Leases		40,737			—			100	%		40,810			196	%		189,737			109	%
Investment in Securities		45,486			—			79	%		57,370			117	%		122,066			53	%
Other Operating Transactions		29,354			—			102	%		28,655			138	%		186,265			160	%

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Condensed Consolidated Statements of Income
(For the Three Months Ended June 30, 2004 and 2003, and the Year Ended March 31, 2004)
(Unaudited)

(millions of JPY, millions of US$)


	Three Months					Three Months					Year
	ended					ended					ended					U.S. dollars
	June 30,			Year-on-year		June 30,			Year-on-year		March 31,			Year-on-year		June 30,
	2004			Change		2003			Change		2004			Change		2004
				(%)					(%)					(%)
Total Revenues :		193,313			114		169,335			105		720,773			106		1,783

Direct Financing Leases		27,399			96		28,516			93		112,372			91		253
Operating Leases		36,007			117		30,747			105		130,488			106		332
Interest on Loans and Investment Securities		29,904			106		28,314			92		116,744			89		276
Brokerage Commissions and Net Gains on Investment Securities		5,160			159		3,246			63		26,025			240		48
Life Insurance Premiums and Related Investment Income		30,235			99		30,590			93		134,212			97		279
Residential Condominium Sales		12,903			56		23,176			199		98,034			138		119
Gains on Sales of Real Estate under Operating Leases		1,445			26		5,549			557		9,116			280		13
Other Operating Revenues		50,260			262		19,197			100		93,782			116		463

Total Expenses :		161,831			109		148,137			109		635,998			99		1,493

Interest Expense		14,180			87		16,206			86		60,597			84		131
Depreciation — Operating Leases		23,108			113		20,505			106		83,919			105		213
Life Insurance Costs		27,965			95		29,326			99		119,653			95		258
Costs of Residential Condominium Sales		11,803			58		20,372			204		88,679			146		109
Other Operating Expenses		35,610			349		10,217			122		52,561			127		328
Selling, General and Administrative Expenses		39,074			104		37,489			110		161,835			112		361
Provision for Doubtful Receivables and Probable Loan Losses		8,795			73		11,968			93		49,592			91		81
Write-downs of Long-Lived Assets		—			—		—			—		12,345			24		—
Write-downs of Securities		1,468			97		1,506			70		5,240			37		14
Foreign Currency Transaction Loss (Gain), Net		(172	)		—		548			77		1,577			130		(2	)

Operating Income		31,482			149		21,198			86		84,775			229		290

Equity in Net Income of Affiliates		4,754			140		3,384			209		17,924			289		44
Gain (Loss) on Sales of Affiliates		839			—		—			—		(542	)		—		8

Income before Discontinued Operations, Extraordinary Gain and Income Taxes		37,075			151		24,582			94		102,157			226		342

Provision for Income Taxes		16,287			144		11,276			100		51,538			248		150

Income from Continuing Operations		20,788			156		13,306			90		50,619			207		192

Discontinued Operations
Income from Discontinued Operations, Net		4,569					1,338					4,713					42
Provision for Income Taxes		(1,830	)				(546	)				(1,921	)				(17	)

Discontinued Operations, Net of Applicable Tax Effect		2,739			346		792			808		2,792			424		25

Extraordinary Gain, Net of Applicable Tax Effect		—			—		—			—		609			19		—

Net Income		23,527			167		14,098			83		54,020			179		217

Note: 1.		Comprehensive Income under FASB Statement No. 130 (“Reporting Comprehensive Income”) was a gain of JPY 32,593 million (US$301 million) for the three months ended June 30, 2004, a gain of JPY 23,188 million for the three months ended June 30, 2003 and a gain of JPY 60,626 million for the year ended March 31, 2004.

2.		“Gains on Sales of Real Estate under Operating Leases” was reclassified as a separate account from previous fiscal year. In addition, “Gains on Sales of Real Estate under Operating Leases” that had been included in “Operating Leases” in the three months ended June, 30, 2003, has been reclassified to conform to this fiscal year’s presentation.

3.		From the previous fiscal year, net income from real estate under operating leases considered to be discontinued operations were reclassified as “Discontinued Operations.” Accordingly, certain amounts in previous year have been reclassified to conform to the presentation for this fiscal year.

4.		“Interest Income on Deposits,” which had been disclosed separately until previous fiscal year, has been included in “Other Operating Revenues” from this fiscal year because it no longer has any significant amount. The statements in previous fiscal year are also amended in order to correspond with this reclassification.

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Condensed Consolidated Balance Sheets
(As of June 30, 2004 and March 31, 2004)
(Unaudited)

(millions of JPY, millions of US$)


	June			March			U.S. dollars
	30, 2004			31, 2004			June 30, 2004
Assets
Cash and Cash Equivalents		141,423			152,235			1,304
Restricted Cash		47,711			35,621			440
Time Deposits		749			677			7
Investment in Direct Financing Leases		1,454,461			1,453,575			13,414
Installment Loans		2,221,554			2,234,940			20,488
Allowance for Doubtful Receivables on Direct Financing Leases and Probable Loan Losses		(128,726	)		(128,020	)		(1,187	)
Investment in Operating Leases		529,078			536,702			4,879
Investment in Securities		579,193			551,928			5,342
Other Operating Assets		68,004			72,049			627
Investment in Affiliates		164,532			157,196			1,517
Other Receivables		144,404			142,711			1,332
Inventories		134,047			121,441			1,236
Prepaid Expenses		46,233			44,139			426
Office Facilities		71,679			71,196			661
Other Assets		176,676			178,567			1,631

Total		5,651,018			5,624,957			52,117

Liabilities and Shareholders’ Equity
Short-Term Debt		968,280			903,916			8,930
Deposits		294,973			292,545			2,720
Trade Notes, Accounts Payable and Other Liabilities		294,901			279,852			2,720
Accrued Expenses		79,805			96,668			736
Policy Liabilities		577,024			592,782			5,322
Current and Deferred Income Taxes		144,749			153,937			1,335
Deposits from Lessees		82,978			78,491			766
Long-Term Debt		2,613,529			2,662,719			24,103

Total Liabilities		5,056,239			5,060,910			46,632

Common Stock		52,085			52,068			480
Additional Paid-in Capital		70,034			70,015			646
Retained Earnings:
Legal Reserve		2,220			2,220			20
Retained Earnings		502,525			481,091			4,635
Accumulated Other Comprehensive Loss		(24,075	)		(33,141	)		(222	)
Treasury Stock, at Cost		(8,010	)		(8,206	)		(74	)

Shareholders’ Equity		594,779			564,047			5,485

Total		5,651,018			5,624,957			52,117


	June			March			U.S. dollars
	30, 2004			31, 2004			June 30, 2004
Note: Accumulated Other Comprehensive Loss
Net unrealized gains on investment in securities		30,369			25,048			280
Minimum pension liability adjustments		(8,014	)		(7,967	)		(74	)
Foreign currency translation adjustments		(43,419	)		(45,629	)		(400	)
Net unrealized losses on derivative instruments		(3,011	)		(4,593	)		(28	)

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Condensed Consolidated Statements of Cash Flows
(For the Three Months Ended June 30, 2004 and the Year Ended March 31, 2004)
(Unaudited)

(millions of JPY, millions of US$)


							U.S. dollars
	Three Months			Year ended			Three Months
	ended June 30,			March 31,			ended June 30,
	2004			2004			2004
Cash Flows from Operating Activities:
Net income		23,527			54,020			217
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		30,850			121,530			285
Provision for doubtful receivables and probable loan losses		8,795			49,592			81
Decrease in policy liabilities		(15,758	)		(15,771	)		(145	)
Gains from securitization transactions		—			(446	)		—
Equity in net income of affiliates		(4,754	)		(17,924	)		(44	)
(Gain) loss on sales of affiliates		(839	)		542			(8	)
Extraordinary gain		—			(609	)		—
Gains on sales of available-for-sale securities		(4,352	)		(8,728	)		(40	)
Gains on sales of real estate under operating lease		(1,445	)		(9,116	)		(13	)
Write-downs of long-lived assets		—			12,345			—
Write-downs of securities		1,468			5,240			14
Increase in restricted cash		(12,002	)		(17,393	)		(111	)
Increase in inventories		(9,889	)		(18,197	)		(91	)
Increase in prepaid expenses		(2,166	)		(1,974	)		(20	)
Increase (decrease) in accrued expenses		(17,001	)		7,481			(157	)
Increase in deposits from lessees		5,158			683			48
Other, net		(20,432	)		(8,463	)		(190	)

Net cash provided by (used in) operating activities		(18,840	)		152,812			(174	)

Cash Flows from Investing Activities:
Purchases of lease equipment		(210,180	)		(873,248	)		(1,938	)
Principal payments received under direct financing leases		161,092			731,702			1,486
Net proceeds from securitization of lease and loan receivables		—			35,704			—
Installment loans made to customers		(307,530	)		(1,130,986	)		(2,836	)
Principal collected on installment loans		315,993			1,092,698			2,914
Proceeds from sales of operating lease assets		29,799			116,531			275
Investment in and dividends received from affiliates, net		(1,092	)		5,822			(10	)
Purchases of available-for-sale securities		(42,341	)		(90,527	)		(390	)
Proceeds from sales of available-for-sale securities		17,108			164,860			158
Maturities of available-for-sale securities		9,719			88,601			90
Purchases of other securities		(3,221	)		(32,707	)		(30	)
Proceeds from sales of other securities		838			12,648			8
Purchases of other operating assets		(183	)		(8,966	)		(2	)
Proceeds from sales of other operating assets		2,799			10,468			26
Acquisitions of subsidiaries, net of cash acquired		—			(8,861	)		—
Sales of subsidiaries, net of cash disposed		—			24			—
Other, net		8,014			10,215			72

Net cash provided by (used in) investing activities		(19,185	)		123,978			(177	)

Cash Flows from Financing Activities:
Net increase (decrease) in debt with maturities of three months or less		24,235			(7,276	)		224
Proceeds from debt with maturities longer than three months		418,820			1,539,433			3,863
Repayment of debt with maturities longer than three months		(436,484	)		(1,893,581	)		(4,025	)
Net increase in deposits due to customers		2,428			30,078			22
Issuance of common stock		31			8			0
Dividends paid		(2,093	)		(2,092	)		(19	)
Net increase in call money		20,000			5,000			184
Other, net		203			146			1

Net cash provided by (used in) financing activities		27,140			(328,284	)		250

Effect of Exchange Rate Changes on Cash and Cash Equivalents		73			(948	)		1

Net Decrease in Cash and Cash Equivalents		(10,812	)		(52,442	)		(100	)
Cash and Cash Equivalents at Beginning of Period		152,235			204,677			1,404

Cash and Cash Equivalents at End of Period		141,423			152,235			1,304

-8-

Segment Information
(For the Three Months Ended June 30, 2004 and 2003, and the Year Ended March 31, 2004)
(Unaudited)

(millions of JPY)


	Three months ended June 30, 2004									Three months ended June 30, 2003									Year ended March 31, 2004
				Income (Loss)									Income (Loss)								Income (Loss)
				before									before								before
				Income			Operating						Income			Operating					Income			Operating
	Revenues			*Taxes1**			Assets			Revenues			Taxes			Assets			Revenues		Taxes			Assets
Operations in Japan
Corporate Financial Services		33,865			13,040			1,841,124			30,993			9,345			1,910,425			128,355		43,787			1,806,686
Rental Operations		20,377			2,302			143,350			16,980			1,520			142,189			74,370		9,342			147,231
Real Estate-Related Finance		16,538			4,906			929,378			10,937			3,018			932,999			54,792		18,102			909,019
Real Estate		37,238			6,515			315,257			37,239			8,160			295,663			143,451		6,244			309,558
Life Insurance		30,260			1,879			561,819			30,590			(392	)		592,987			133,391		5,382			582,473
Other		32,772			6,374			419,110			16,231			1,177			395,184			73,986		10,079			412,505

Sub-Total		171,050			35,016			4,210,038			142,970			22,828			4,269,447			608,345		92,936			4,167,472
Overseas Operations
The Americas		10,086			1,210			451,032			11,313			2,131			604,167			47,294		7,601			472,595
Asia and Oceania		13,004			5,679			412,171			12,857			4,204			461,345			53,694		17,848			413,041
Europe		2,265			255			55,550			2,606			(258	)		70,657			10,708		(1,252	)		56,634

Sub-Total		25,355			7,144			918,753			26,776			6,077			1,136,169			111,696		24,197			942,270

Segment Total		196,405			42,160			5,128,791			169,746			28,905			5,405,616			720,041		117,133			5,109,742

Difference between Segment totals and Consolidated Amounts		(3,092	)		(5,085	)		(276,501	)		(411	)		(4,323	)		(225,054	)		732		(14,976	)		(260,548	)

Consolidated Amounts		193,313			37,075			4,852,290			169,335			24,582			5,180,562			720,773		102,157			4,849,194

(millions of US$)


	U.S. dollars June 30, 2004
				Income (Loss)
				before
				Income			Operating
	Revenues			Taxes			Assets
Operations in Japan
Corporate Financial Services		312			120			16,980
Rental Operations		188			21			1,322
Real Estate-Related Finance		153			45			8,571
Real Estate		343			60			2,907
Life Insurance		279			17			5,181
Other		303			60			3,866

Sub-Total		1,578			323			38,827
Overseas Operations
The Americas		93			11			4,160
Asia and Oceania		120			52			3,801
Europe		21			3			512

Sub-Total		234			66			8,473

Segment Total		1,812			389			47,300

Difference between Segment totals and Consolidated Amounts		(29	)		(47	)		(2,550	)

Consolidated Amounts		1,783			342			44,750

*Note 1:		“Income (Loss) before Income Taxes” represents “Income before Discontinued Operations, Extraordinary Gain and Income Taxes.”

Note 2:		Results of discontinued operation are not eliminated from “Revenues” and “Income (Loss) before Income Taxes” of each segment, but are eliminated in “Difference between Segment totals and Consolidated Amounts” in the segment information.

-9-

Key Quarterly Financial Data (Unaudited)

(millions of JPY)


	Fiscal 2004												Fiscal 2005
	Q1 (03/4-6)			Q2 (03/7-9)			Q3 (03/10-12)			Q4 (04/1-3)			Q1 (04/4-6)
Balance Sheet Data
1) Investment in Direct Financing Leases		1,582,153			1,542,172			1,545,853			1,453,575			1,454,461
Japan		1,242,600			1,237,347			1,255,453			1,183,187			1,183,421
Overseas		339,553			304,825			290,400			270,388			271,040
2) Installment Loans		2,302,005			2,224,486			2,224,670			2,234,940			2,221,554
Japan		1,969,694			1,922,105			1,943,624			1,984,416			1,997,881
Overseas		332,311			302,381			281,046			250,524			223,673
3) Investment in Operating Leases		523,413			487,613			496,570			536,702			529,078
Japan		358,596			333,527			346,064			388,452			385,532
Overseas		164,817			154,086			150,506			148,250			143,546
4) Investment in Securities		697,926			589,918			544,021			551,928			579,193
Japan		528,184			440,598			394,784			399,463			423,111
Overseas		169,742			149,320			149,237			152,465			156,082
5) Other Operating Assets		75,065			72,502			70,556			72,049			68,004
Japan		65,803			64,300			63,008			64,993			61,071
Overseas		9,262			8,202			7,548			7,056			6,933

Total Operating Assets		5,180,562			4,916,691			4,881,670			4,849,194			4,852,290

Allowance for Doubtful Receivables on Direct Financing Leases		(134,740	)		(130,015	)		(130,851	)		(128,020	)		(128,726	)
and Probable Loan Losses
Allowance/Investment in Direct Financing Leases and Installment Loans		3.5	%		3.5	%		3.5	%		3.5	%		3.5	%

Total Assets		5,923,307			5,684,598			5,672,032			5,624,957			5,651,018

Short-Term Debt, Long-Term Debt and Deposits		4,232,175			3,977,021			3,941,826			3,859,180			3,876,782
Policy Liabilities		604,830			607,591			600,281			592,782			577,024

Total Liabilities		5,396,760			5,143,520			5,120,264			5,060,910			5,056,239

Shareholders’ Equity		526,547			541,078			551,768			564,047			594,779

Total Liabilities & Shareholders’ Equity		5,923,307			5,684,598			5,672,032			5,624,957			5,651,018


	Q1 (03/4-6)		Q2 (03/7-9)		Q3 (03/10-12)		Q4 (04/1-3)		Q1 (04/4-6)
New Business Volumes
Direct Financing Leases: New receivables added		212,175		186,370		215,975		187,267		188,262
Japan		158,176		139,969		172,006		148,301		150,035
Overseas		53,999		46,401		43,969		38,966		38,227
Direct Financing Leases: New equipment acquisitions		188,194		166,734		192,336		165,976		166,937
Japan		138,479		121,963		151,787		129,688		130,715
Overseas		49,715		44,771		40,549		36,288		36,222
Installment Loans: New loans added		270,959		258,464		293,556		301,297		307,530
Japan		225,042		223,315		247,284		262,005		273,289
Overseas		45,917		35,149		46,272		39,292		34,241
Operating Leases: New equipment acquisitions		40,810		33,722		44,102		71,103		40,737
Japan		29,880		20,354		38,392		55,714		33,195
Overseas		10,930		13,368		5,710		15,389		7,542
Investment in Securities: New securities added		57,370		12,107		19,980		32,609		45,486
Japan		53,835		11,020		6,051		30,006		38,795
Overseas		3,535		1,087		13,929		2,603		6,691
Other Operating Transactions: New assets added		28,655		48,363		28,416		80,831		29,354
Japan		28,655		48,301		28,416		80,831		29,354
Overseas		—		62		—		—		—

-10-

(millions of JPY)


	Fiscal 2004											Fiscal 2005
	Q1 (03/4-6)		Q2 (03/7-9)			Q3 (03/10-12)			Q4 (04/1-3)			Q1 (04/4-6)
Income Statement Data
Revenues
1) Direct Financing Leases		28,516		28,349			27,503			28,004			27,399
Japan		21,906		21,865			21,462			21,695			21,698
Overseas		6,610		6,484			6,041			6,309			5,701
2) Operating Leases		30,747		30,858			34,074			34,809			36,007
Japan		21,789		20,885			24,847			25,468			26,928
Overseas		8,958		9,973			9,227			9,341			9,079
3) Interest on Loans and Investment Securities		28,314		31,263			27,860			29,307			29,904
Interest on loans		25,729		29,001			25,820			26,940			27,204
Japan		21,082		23,958			21,706			22,549			23,383
Overseas		4,647		5,043			4,114			4,391			3,821
Interest on investment securities		2,585		2,262			2,040			2,367			2,700
Japan		173		295			165			252			264
Overseas		2,412		1,967			1,875			2,115			2,436
4) Brokerage Commissions and Net Gains on Investment Securities		3,246		4,323			6,595			11,861			5,160
Brokerage commissions		691		1,167			1,006			1,103			1,226
Net gains on investment securities		2,555		3,156			5,589			10,758			3,934
5) Life Insurance Premiums and Related Investment Income		30,590		34,563			28,480			40,579			30,235
Life insurance premiums		27,524		31,114			24,231			36,589			28,007
Related investment income		3,066		3,449			4,249			3,990			2,228
6) Residential Condominium Sales		23,176		19,359			26,329			29,170			12,903
Japan		23,176		19,359			26,329			29,170			12,903
Overseas		—		—			—			—			—
7) Gains (Losses) on Sales of Real Estate under Operating Leases		5,549		2,345			1,121			101			1,445
Japan		5,464		2,317			981			109			1,198
Overseas		85		28			140			(8	)		247
8) Other Operating Revenues		19,197		22,734			21,713			30,138			50,260
Japan		17,069		19,745			18,887			27,726			47,207
Overseas		2,128		2,989			2,826			2,412			3,053

Total Revenues		169,335		173,794			173,675			203,969			193,313

Expenses
1) Interest Expense		16,206		15,549			14,845			13,997			14,180
2) Depreciation—Operating Leases		20,505		20,674			20,869			21,871			23,108
3) Life Insurance Costs		29,326		28,917			24,892			36,518			27,965
4) Costs of Residential Condominium Sales		20,372		17,301			24,463			26,543			11,803
5) Other Operating Expenses		10,217		11,529			12,782			18,033			35,610
6) Selling, General and Administrative Expenses		37,489		39,981			39,551			44,814			39,074
7) Provision for Doubtful Receivables and Probable Loan Losses		11,968		11,875			10,839			14,910			8,795
8) Write-downs of Long-Lived Assets		—		4,202			—			8,143			—
9) Write-downs of Securities		1,506		551			1,930			1,253			1,468
10) Foreign Currency Transaction (Gain) Loss, Net		548		(74	)		397			706			(172	)

Total Expenses		148,137		150,505			150,568			186,788			161,831

Operating Income		21,198		23,289			23,107			17,181			31,482
Equity in Net Income of Affiliates		3,384		8,539			2,707			3,294			4,754
Gain (Loss) on Sales of Affiliates		—		(396	)		(136	)		(10	)		839
Income before Discontinued Operations, Extraordinary Gain and Income Taxes		24,582		31,432			25,678			20,465			37,075
Provision for Income Taxes		11,276		14,889			11,901			13,472			16,287
Income from Continuing Operations		13,306		16,543			13,777			6,993			20,788
Discontinued Operations, Net of Applicable Tax Effect		792		535			696			769			2,739
Extraordinary Gain, Net of Applicable Tax Effect		—		243			—			366			—

Net Income		14,098		17,321			14,473			8,128			23,527


	Q1 (03/4-6)			Q2 (03/7-9)			Q3 (03/10-12)			Q4 (04/1-3)			Q1 (04/4-6)
Key Ratios, Per Share Data, and Employees
Return on Equity (ROE)*		10.9	%		13.0	%		10.6	%		5.8	%		16.2	%
Return on Assets (ROA)*		0.95	%		1.19	%		1.02	%		0.58	%		1.67	%
Shareholders’ Equity Ratio		8.9	%		9.5	%		9.7	%		10.0	%		10.5	%
Debt-to-Equity Ratio (times)		8.0			7.4			7.1			6.8			6.5
Shareholders’ Equity Per Share (yen)		6,291.50			6,465.22			6,594.86			6,739.64			7,104.39
Basic EPS (yen)		168.45			206.96			172.94			97.14			281.05
Diluted EPS (yen)		158.71			194.94			162.72			91.33			263.42
Number of Employees		11,621			11,723			12,698			12,481			14,917

annualized

-11-

(millions of JPY)


	Fiscal 2004											Fiscal 2005
	Q1 (03/4-6)			Q2 (03/7-9)			Q3 (03/10-12)		Q4 (04/1-3)			Q1 (04/4-6)
Segment Information
Operations in Japan
Corporate Financial Services		30,993			33,269			31,086		33,007			33,865
Rental Operations		16,980			17,717			18,647		21,026			20,377
Real Estate-Related Finance		10,937			13,011			14,723		16,121			16,538
Real Estate		37,239			29,921			35,429		40,862			37,238
Life Insurance		30,590			33,973			27,978		40,850			30,260
Other		16,231			16,398			18,614		22,743			32,772

Sub-Total		142,970			144,289			146,477		174,609			171,050

Overseas Operations
The Americas		11,313			11,916			10,336		13,729			10,086
Asia and Oceania		12,857			13,814			12,831		14,192			13,004
Europe		2,606			2,721			3,133		2,248			2,265

Sub-Total		26,776			28,451			26,300		30,169			25,355

Total Segment Revenues		169,746			172,740			172,777		204,778			196,405

Operations in Japan
Corporate Financial Services		9,345			12,574			11,592		10,276			13,040
Rental Operations		1,520			1,936			2,072		3,814			2,302
Real Estate-Related Finance		3,018			6,101			4,412		4,571			4,906
Real Estate		8,160			(1,831	)		1,722		(1,807	)		6,515
Life Insurance		(392	)		2,899			1,834		1,041			1,879
Other		1,177			1,651			2,253		4,998			6,374

Sub-Total		22,828			23,330			23,885		22,893			35,016

Overseas Operations
The Americas		2,131			1,781			2,123		1,566			1,210
Asia and Oceania		4,204			9,735			2,446		1,463			5,679
Europe		(258	)		(1,641	)		454		193			255

Sub-Total		6,077			9,875			5,023		3,222			7,144

Total Segment Profits (Income before Income Taxes)		28,905			33,205			28,908		26,115			42,160

Operations in Japan
Corporate Financial Services		1,910,425			1,845,251			1,878,794		1,806,686			1,841,124
Rental Operations		142,189			140,987			141,932		147,231			143,350
Real Estate-Related Finance		932,999			879,964			901,501		909,019			929,378
Real Estate		295,663			275,967			283,227		309,558			315,257
Life Insurance		592,987			570,013			533,708		582,473			561,819
Other		395,184			406,076			412,459		412,505			419,110

Sub-Total		4,269,447			4,118,258			4,151,621		4,167,472			4,210,038

Overseas Operations
The Americas		604,167			541,036			517,134		472,595			451,032
Asia and Oceania		461,345			434,584			419,775		413,041			412,171
Europe		70,657			64,524			57,298		56,634			55,550

Sub-Total		1,136,169			1,040,144			994,207		942,270			918,753

Total Segment Assets		5,405,616			5,158,402			5,145,828		5,109,742			5,128,791

-12-

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