Segment Information

6 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

25. Segment Information

The financial information about the operating segments reported below is that which is available for each segment and evaluated regularly by the chief operating decision maker in charge of resource allocation and performance assessment.

An overview of operations for each of the ten segments follows below.

Corporate Financial Services and Maintenance Leasing	:	Finance and fee business; leasing and rental of automobiles, electronic measuring instruments and ICT-related equipment
Real Estate	:	Real estate development, rental and management; facility operations; real estate asset management
PE Investment and Concession	:	Private equity investment; concession
Environment and Energy	:	Domestic and overseas renewable energy; electric power retailing; ESCO services; sales of solar panels; recycling and waste management
Insurance	:	Life insurance
Banking and Credit	:	Banking; consumer finance
Aircraft and Ships	:	Aircraft investment and management; ship-related finance and investment
ORIX USA	:	Finance, investment and asset management in the Americas
ORIX Europe	:	Asset management of global equity and fixed income
Asia and Australia	:	Finance and investment businesses in Asia and Australia

The accounting policies of the segments are almost the same as those described in Note 2 “Significant Accounting and Reporting Policies” except for the treatment of income tax expenses, net income attributable to noncontrolling interests, and net income attributable to redeemable noncontrolling interests. The chief operating decision maker evaluates the performance of the segments based on the amount equivalent to income before income taxes, net income attributable to noncontrolling interests and net income attributable to redeemable noncontrolling interests before the applicable tax effects. Income taxes are not included in segment profits or losses because management evaluates segments’ performance on a pre-tax basis. Most of selling, general and administrative expenses, including compensation costs that are directly related to the revenue generating activities of each segment and excluding the expenses that should be borne by ORIX Group as a whole, have been accumulated by and charged to each segment. Gains and losses that management does not consider for evaluating the performance of the segments, such as certain interest expenses and write-downs of certain long-lived assets and certain foreign exchange gains or losses (included in other (income) and expense) are excluded from the segment profits or losses, and are regarded as corporate items.

Assets attributed to each segment are total assets except for certain cash and head office assets.

The presentation of equity method investment has been changed since the fourth quarter of fiscal 2024. As a result, segment data for the six months ended September 30, 2023 have been retrospectively reclassified.

Since April 1, 2024, the interest expense allocation method for each segment was changed to include a part of interest expenses in corporate profits (losses) in the reconciliation of segment profits to the condensed consolidated financial statement amounts. As a result, segment data for the six months ended September 30, 2023 have been retrospectively reclassified.

Since April 1, 2024, the scope of segment assets was changed to include cash and cash equivalents, trade notes, accounts and other receivable, and others. As a result, segment data as of for the end of fiscal 2024 have been retrospectively reclassified.

Segment information for the six months ended September 30, 2023 and six months ended September 30, 2024 is as follows:

	Millions of yen
	Six months ended September 30, 2023
	Corporate Financial Services and Maintenance Leasing			Real Estate			PE Investment and Concession			Environment and Energy			Insurance			Banking and Credit			Aircraft and Ships
Finance revenues		¥31,398			¥3,008			¥814			¥720			¥144			¥39,630			¥4,051
Gains on investment securities and dividends		2,167			479			228			(8	)		0			187			232
Operating leases		132,122			24,289			19,957			40			0			0			21,867
Life insurance premiums and related investment income		0			0			0			0			287,026			0			0
Sales of goods and real estate		2,135			52,514			114,149			1,658			0			0			97
Services income		52,421			139,003			38,128			79,562			1,416			3,111			2,999
Total Segment Revenues		220,243			219,293			173,276			81,972			288,586			42,928			29,246
Interest expense		2,699			1,427			1,690			5,046			0			2,608			5,089
Costs of operating leases		95,428			12,537			13,352			9			0			0			10,278
Life insurance costs		0			0			0			0			222,032			0			0
Costs of goods and real estate sold		1,681			40,754			79,379			1,005			0			0			97
Services expense		28,361			118,397			26,666			53,908			0			3,436			506
Other (income) and expense		8,326			(301	)		(605	)		963			(3	)		(276	)		(2,973	)
Selling, general and administrative expenses		43,938			20,611			42,498			9,036			29,105			16,041			4,936
Provision for credit losses, and write-downs of long-lived assets and securities		388			434			191			25			0			4,116			(0	)
Total Segment Expenses		180,821			193,859			163,171			69,992			251,134			25,925			17,933
Equity in Net income (Loss) of equity method investments and others		1,951			2,076			(180	)		148			(1	)		(201	)		7,481
Segment Profits		41,373			27,510			9,925			12,128			37,451			16,802			18,794
Significant non-cash items:
Depreciation and amortization		75,456			9,118			13,537			13,780			6,159			708			10,602
Increase in policy liabilities and policy account balances		0			0			0			0			100,338			0			0
Expenditures for long-lived assets		88,875			29,607			9,568			26,808			224			4			126,481
	Millions of yen
	Six months ended September 30, 2023
	ORIX USA			ORIX Europe			Asia and Australia			Total
Finance revenues	¥	57,662		¥	1,053		¥	34,208		¥	172,688
Gains on investment securities and dividends		4,591			1,889			375			10,140
Operating leases		699			0			58,496			257,470
Life insurance premiums and related investment income		0			0			0			287,026
Sales of goods and real estate		231			0			153			170,937
Services income		24,554			101,332			11,847			454,373
Total Segment Revenues		87,737			104,274			105,079			1,352,634
Interest expense		24,363			141			16,225			59,288
Costs of operating leases		104			0			43,447			175,155
Life insurance costs		0			0			0			222,032
Costs of goods and real estate sold		139			0			145			123,200
Services expense		1,535			25,938			7,365			266,112
Other (income) and expense		(1,400	)		(196	)		(1,047	)		2,488
Selling, general and administrative expenses		41,581			61,258			20,000			289,004
Provision for credit losses, and write-downs of long-lived assets and securities		1,005			0			3,009			9,168
Total Segment Expenses		67,327			87,141			89,144			1,146,447
Equity in Net income (Loss) of equity method investments and others		1,081			2,403			2,585			17,343
Segment Profits		21,491			19,536			18,520			223,530
Significant non-cash items:
Depreciation and amortization		1,859			3,221			42,083			176,523
Increase in policy liabilities and policy account balances		0			0			0			100,338
Expenditures for long-lived assets		340			130			89,850			371,887

	Millions of yen
	Six months ended September 30, 2024
	Corporate Financial Services and Maintenance Leasing			Real Estate			PE Investment and Concession			Environment and Energy			Insurance			Banking and Credit		Aircraft and Ships
Finance revenues	¥	30,890		¥	2,467		¥	5,978		¥	616		¥	159		¥	28,818	¥	3,333
Gains on investment securities and dividends		1,460			845			586			(8	)		0			65		139
Operating leases		139,859			37,842			20,605			39			0			0		41,900
Life insurance premiums and related investment income		0			0			0			0			235,014			0		0
Sales of goods and real estate		1,812			61,793			122,384			1,481			0			0		196
Services income		54,783			157,232			31,473			86,834			(1	)		1,567		5,734
Total Segment Revenues		228,804			260,179			181,026			88,962			235,172			30,450		51,302
Interest expense		3,278			1,172			1,655			6,211			81			2,745		8,563
Costs of operating leases		98,878			11,941			13,072			9			0			0		17,581
Life insurance costs		0			0			0			0			166,834			0		0
Costs of goods and real estate sold		1,489			49,789			84,951			836			0			0		199
Services expense		29,522			125,059			21,928			65,705			0			4,433		2,151
Other (income) and expense		8,757			703			(449	)		562			(140	)		106		(2,543	)
Selling, general and administrative expenses		45,051			20,873			43,194			10,828			27,539			10,635		5,004
Provision for credit losses, and write-downs of long-lived assets and securities		1,060			60			93			238			1			308		(0	)
Total Segment Expenses		188,035			209,597			164,444			84,389			194,315			18,227		30,955
Equity in Net income (Loss) of equity method investments and others		4,797			(225	)		30,415			(2,227	)		(0	)		884		11,664
Segment Profits		45,566			50,357			46,997			2,346			40,857			13,107		32,011
Significant non-cash items:
Depreciation and amortization		77,763			9,494			12,910			16,713			14,842			326		13,728
Increase in policy liabilities and policy account balances		0			0			0			0			41,053			0		0
Expenditures for long-lived assets		100,876			40,706			7,941			21,293			77			0		174,188
	Millions of yen
	Six months ended September 30, 2024
	ORIX USA			ORIX Europe			Asia and Australia			Total
Finance revenues	¥	53,163		¥	1,990		¥	37,885		¥	165,299
Gains on investment securities and dividends		(280	)		3,821			(47	)		6,581
Operating leases		292			0			67,510			308,047
Life insurance premiums and related investment income		0			0			0			235,014
Sales of goods and real estate		235			0			246			188,147
Services income		22,255			120,866			12,016			492,759
Total Segment Revenues		75,665			126,677			117,610			1,395,847
Interest expense		22,225			373			20,972			67,275
Costs of operating leases		649			0			48,902			191,032
Life insurance costs		0			0			0			166,834
Costs of goods and real estate sold		151			0			229			137,644
Services expense		854			32,629			7,599			289,880
Other (income) and expense		(2,284	)		4,609			(621	)		8,700
Selling, general and administrative expenses		45,360			69,026			21,782			299,292
Provision for credit losses, and write-downs of long-lived assets and securities		1,617			115			4,555			8,047
Total Segment Expenses		68,572			106,752			103,418			1,168,704
Equity in Net income (Loss) of equity method investments and others		9,514			872			4,932			60,626
Segment Profits		16,607			20,797			19,124			287,769
Significant non-cash items:
Depreciation and amortization		1,736			3,202			47,103			197,817
Increase in policy liabilities and policy account balances		0			0			0			41,053
Expenditures for long-lived assets		878			480			86,152			432,591

Segment information as of March 31, 2024 and September 30, 2024 is as follows:
	Millions of yen
	As of March 31, 2024
	Corporate Financial Services and Maintenance Leasing		Real Estate		PE Investment and Concession		Environment and Energy		Insurance		Banking and Credit		Aircraft and Ships
Net investment in leases	¥	567,735	¥	51,978	¥	1,238	¥	3,104	¥	0	¥	0	¥	0
Installment loans		346,840		52		115,629		2,255		11,792		2,378,183		60,468
Investment in operating leases		535,655		278,191		56,286		250		26,876		0		557,867
Investment in securities		36,683		4,036		36,729		571		2,236,495		311,237		11,960
Property under facility operations and servicing assets		17,404		165,387		41,416		453,252		0		0		0
Inventories		928		174,990		47,553		2,463		0		0		733
Advances for finance lease and operating lease		3,400		114,649		5		0		0		0		9,232
Equity method investments		14,984		143,751		118,310		219,018		29,742		43,601		399,061
Advances for property under facility operations		0		8,183		4,466		44,962		0		0		0
Goodwill, intangible assets acquired in business combinations		28,693		52,898		351,202		121,174		4,452		0		19,114
Other assets		224,998		115,972		293,813		129,385		612,570		201,196		111,206
Segment Assets		1,777,320		1,110,087		1,066,647		976,434		2,921,927		2,934,217		1,169,641
	Millions of yen
	As of March 31, 2024
	ORIX USA		ORIX Europe		Asia and Australia		Total
Net investment in leases	¥	505	¥	0	¥	530,426	¥	1,154,986
Installment loans		699,384		0		343,936		3,958,539
Investment in operating leases		9,858		0		395,573		1,860,556
Investment in securities		509,172		82,568		33,520		3,262,971
Property under facility operations and servicing assets		79,747		0		1,849		759,055
Inventories		159		0		224		227,050
Advances for finance lease and operating lease		0		0		3,017		130,303
Equity method investments		61,415		11,907		271,682		1,313,471
Advances for property under facility operations		0		0		0		57,611
Goodwill, intangible assets acquired in business combinations		176,785		364,773		7,313		1,126,404
Other assets		157,459		202,891		121,693		2,171,183
Segment Assets		1,694,484		662,139		1,709,233		16,022,129

	Millions of yen
	As of September 30, 2024
	Corporate Financial Services and Maintenance Leasing		Real Estate		PE Investment and Concession		Environment and Energy		Insurance		Banking and Credit		Aircraft and Ships
Net investment in leases	¥	561,576	¥	48,277	¥	1,064	¥	2,436	¥	0	¥	0	¥	0
Installment loans		363,951		41		119,949		2,784		11,951		2,368,834		44,765
Investment in operating leases		545,046		315,784		57,463		243		26,742		0		643,430
Investment in securities		29,834		1,623		9,182		577		2,215,325		311,975		11,095
Property under facility operations and servicing assets		17,281		160,902		32,730		473,394		0		0		29
Inventories		621		168,672		42,333		2,701		0		0		1,896
Advances for finance lease and operating lease		3,218		76,221		4		0		0		0		18,062
Equity method investments		14,676		173,186		129,267		246,490		31,818		44,423		375,458
Advances for property under facility operations		0		10,787		113		52,905		0		0		0
Goodwill, intangible assets acquired in business combinations		25,971		51,850		343,976		128,736		4,452		0		29,337
Other assets		243,986		103,842		252,205		136,046		610,879		196,192		97,904
Segment Assets		1,806,160		1,111,185		988,286		1,046,312		2,901,167		2,921,424		1,221,976
	Millions of yen
	As of September 30, 2024
	ORIX USA		ORIX Europe		Asia and Australia		Total
Net investment in leases	¥	455	¥	0	¥	545,487	¥	1,159,295
Installment loans		596,207		0		317,970		3,826,452
Investment in operating leases		11,486		0		397,101		1,997,295
Investment in securities		484,048		86,924		34,499		3,185,082
Property under facility operations and servicing assets		73,571		0		1,736		759,643
Inventories		212		0		156		216,591
Advances for finance lease and operating lease		0		0		3,864		101,369
Equity method investments		57,845		11,592		277,269		1,362,024
Advances for property under facility operations		0		0		0		63,805
Goodwill, intangible assets acquired in business combinations		165,697		351,985		7,003		1,109,007
Other assets		150,554		212,496		122,888		2,126,992
Segment Assets		1,540,075		662,997		1,707,973		15,907,555

The reconciliation of segment totals to the condensed consolidated financial statement amounts is as follows:

	Millions of yen
	Six months ended September 30, 2023			Six months ended September 30, 2024
Segment revenues:
Total revenues for segments		¥1,352,634			¥1,395,847
Revenues related to corporate assets		34,142			34,620
Revenues from inter-segment transactions		(26,820	)		(26,834	)
Total consolidated revenues		¥1,359,956			¥1,403,633
Segment profits:
Total profits for segments	¥	223,530		¥	287,769
Corporate profits (losses)		(42,011	)		(30,109	)
Net income attributable to the noncontrolling interests and net income attributable to the redeemable noncontrolling interests		2,948			(669	)
Total consolidated income before income taxes	¥	184,467		¥	256,991

The following information represents disaggregation of revenues for revenues from contracts with customers, by goods and services category and geographical location for the six months ended September 30, 2023 and 2024.

For the six months ended September 30, 2023

	Millions of yen
	Six months ended September 30, 2023
	Reportable segments
	Corporate Financial Services and Maintenance Leasing		Real Estate			PE Investment and Concession		Environment and Energy		Insurance			Banking and Credit		Aircraft and Ships
Goods or services category
Sales of goods	¥	2,135	¥	1,730		¥	114,149	¥	1,658	¥	0		¥	0	¥	97
Real estate sales		0		50,784			0		0		0			0		0
Asset management and servicing		145		4,858			0		92		0			294		28
Automobile related services		31,951		0			0		138		0			0		0
Facilities operation		0		37,754			0		0		0			0		0
Environment and energy services		1,598		25			38		78,964		0			0		0
Real estate management and brokerage		0		50,148			0		0		0			0		0
Real estate contract work		0		45,377			20,982		0		0			0		0
Other		18,727		841			17,108		368		1,416			2,817		2,971
Total revenues from contracts with customers		54,556		191,517			152,277		81,220		1,416			3,111		3,096
Other revenues *		165,687		27,776			20,999		752		287,170			39,817		26,150
Segment revenues/Total revenues	¥	220,243	¥	219,293		¥	173,276	¥	81,972	¥	288,586		¥	42,928	¥	29,246
	Millions of yen
	Six months ended September 30, 2023
	Reportable segments									Corporate revenue and intersegment transactions			Total revenues
	ORIX USA		ORIX Europe			Asia and Australia		Total
Goods or services category
Sales of goods	¥	226	¥	0		¥	153	¥	120,148	¥	2,863		¥	123,011
Real estate sales		5		0			0		50,789		0			50,789
Asset management and servicing		8,697		101,374			23		115,511		(119	)		115,392
Automobile related services		0		0			11,158		43,247		2			43,249
Facilities operation		0		0			0		37,754		578			38,332
Environment and energy services		459		0			0		81,084		(896	)		80,188
Real estate management and brokerage		0		0			0		50,148		(664	)		49,484
Real estate contract work		0		0			0		66,359		23			66,382
Other		2,383		(42	)		634		47,223		4,680			51,903
Total revenues from contracts with customers		11,770		101,332			11,968		612,263		6,467			618,730
Other revenues *		75,967		2,942			93,111		740,371		855			741,226
Segment revenues/Total revenues	¥	87,737	¥	104,274		¥	105,079	¥	1,352,634	¥	7,322		¥	1,359,956

For the six months ended September 30, 2024

	Millions of yen
	Six months ended September 30, 2024
	Reportable segments
	Corporate Financial Services and Maintenance Leasing		Real Estate		PE Investment and Concession		Environment and Energy		Insurance			Banking and Credit		Aircraft and Ships
Goods or services category
Sales of goods	¥	1,812	¥	1,972	¥	122,384	¥	1,481	¥	0		¥	0	¥	196
Real estate sales		0		59,821		0		0		0			0		0
Asset management and servicing		170		3,549		0		63		0			0		22
Automobile related services		32,327		0		0		106		0			0		0
Facilities operation		0		40,003		0		0		0			0		0
Environment and energy services		1,747		23		36		86,340		0			0		0
Real estate management and brokerage		0		51,132		0		0		0			0		0
Real estate contract work		0		51,013		22,973		0		0			0		0
Other		20,539		1,002		8,464		310		(1	)		1,567		5,712
Total revenues from contracts with customers		56,595		208,515		153,857		88,300		(1	)		1,567		5,930
Other revenues *		172,209		51,664		27,169		662		235,173			28,883		45,372
Segment revenues/Total revenues	¥	228,804	¥	260,179	¥	181,026	¥	88,962	¥	235,172		¥	30,450	¥	51,302
	Millions of yen
	Six months ended September 30, 2024
	Reportable segments								Corporate revenue and intersegment transactions			Total revenues
	ORIX USA		ORIX Europe		Asia and Australia		Total
Goods or services category
Sales of goods	¥	235	¥	0	¥	246	¥	128,326	¥	2,727		¥	131,053
Real estate sales		0		0		0		59,821		0			59,821
Asset management and servicing		6,845		120,784		37		131,470		(116	)		131,354
Automobile related services		0		0		11,239		43,672		0			43,672
Facilities operation		0		0		0		40,003		675			40,678
Environment and energy services		0		0		0		88,146		(681	)		87,465
Real estate management and brokerage		0		0		0		51,132		(713	)		50,419
Real estate contract work		0		0		0		73,986		(896	)		73,090
Other		1,376		82		647		39,698		5,790			45,488
Total revenues from contracts with customers		8,456		120,866		12,169		656,254		6,786			663,040
Other revenues *		67,209		5,811		105,441		739,593		1,000			740,593
Segment revenues/Total revenues	¥	75,665	¥	126,677	¥	117,610	¥	1,395,847	¥	7,786		¥	1,403,633

* Other revenues include revenues that are not in the scope of revenue from contracts with customers, such as life insurance premiums and related investment income, operating leases, finance revenues that include interest income, and others.