ORIX Annual Report to Shareholders: Stengthening Corporate Foundation for Medium and Long Term Growth.Tokyo, Japan, Aug 11, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - ORIX Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :8591; NYSE NYSE See: New York Stock Exchange :IX), a leading integrated financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. group, has issued its Annual Report to Shareholders for the year ended March 31, 2006. In the Report, Yoshihiko Miyauchi, Chairman and Chief Executive Officer of ORIX Corporation, presents "Stengthening Corporate Foundation for Medium and Long Term Growth". "Fiscal 2006, the year ended March 31, 2006, was a year in which the ORIX Corporation enjoyed earnings growth across each of its nine business segments and a record profit for the third consecutive year. Despite the particularly harsh business environment that followed the collapse of the bubble economy, ORIX continued to implement a series of initiatives to secure a platform for solid growth. "Reflecting the fruits of the Company's labors, all nine business segments have expanded steadily, providing the impetus for medium- and long-term growth. Looking back on our performance over the past three years, net income has increased from JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 54.0 billion in fiscal 2004 to JPY 166.4 billion ($1,416 million) in the fiscal year under review. This equates to an average annual growth rate of approximately 76%. Our business scale has also expanded. Total assets as of March 31, 2004 stood at JPY 5,625.0 billion, compared with JPY 7,242.5 billion ($61,654 million) as of March 31, 2006, for an average annual growth rate of approximately 13%. As a measure of the Company's improved financial base, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. climbed at an average rate of 30% from JPY 564.0 billion as of March 31, 2004 to JPY 953.6 billion ($8,118 million) as of March 31, 2006. From a profitability perspective, ROE (the percentage of net income to average shareholders' equity) rose from 10.1% in fiscal 2004 to 19.8% in fiscal 2006, while ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). (the percentage of net income to total average assets) improved from 0.9% to 2.5% over the same period. "Market assessment of the Company's performance has been positive. Market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. as of March 31, 2004 was JPY 963.3 billion rising to JPY 3,294.5 billion ($ 28,046 million) as of March 31, 2006. This equates to an average annual growth rate of approximately 85%. Over the past three years, ORIX has also enjoyed periodic upgrades of its credit ratings. "Despite rapid profit growth over the recent past, we are confident the ORIX Group's performance is based on activities, initiatives, and the momentum gained over a period of more than 40 years. "For example, past measures to tighten risk assessment in our leasing and lending activities during the period of prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. deflation deflation: see inflation. deflation Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. in Japan, have served to enhance financial stability amid the positive climate of today's economic recovery. In addition, our ability to provide a broad range of services in automobile leasing operations that extend beyond the financial function, to encompass maintenance and vehicle operations administration, is the energy that fuels increased profitability. "In the late 1990s, ORIX commenced activities in real estate-related non-recourse loans and the development, marketing, and leasing of office buildings as a part of efforts to pursue new business opportunities. Buoyed by increased real estate fund activity and growth in the real estate securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. market, these businesses have opened the door to numerous other opportunities. At the same time, we successfully expanded investment banking operations in new areas including corporate rehabilitation rehabilitation: see physical therapy. . "Overseas, ORIX made steady progress in expanding its leasing business across Asia, Oceania and Europe. In response to changes in the U.S. market, we were quick to complete business reorganization with the sale of the primary and master servicing businesses. "In consideration of our performance and operating conditions over the recent past including the fiscal year under review, we have decided to raise cash dividends to JPY 90 ($0.77) per share, from JPY 40 per share in the previous fiscal year. Going forward, we will continue to distribute stable dividends to shareholders while optimally utilizing retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. to sustain growth from a medium- to long-term perspective and maximize shareholder value." (Exerpt) To download the ORIX 2006 Annual Report for Shareholders, please visit: ORIX IR website: http://www.orix.co.jp/grp/ir_e/data/report/ar-06.htm. or JCN (Japan Corporate News) Annual Report Gallery: http://www.japancorp.net/reports.asp About ORIX Corporation ORIX Corporation (TSE: 8591; NYSE: IX) is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 24 countries and regions worldwide, ORIX's activities include leasing, corporate and consumer finance, real estate-related finance and development, life insurance, and investment banking. For more details, please visit our web site at: www.orix.co.jp/grp/index_e.htm Source: ORIX Corporation Contact: ORIX Corporation Corporate Communications orixir@orix.co.jp +81-3-5419-5102 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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