Historical Evolution

Group History

 


Introducethe epoch-making financial tool "leasing" in Japan via the environment of constant economic growth favorableto the foundation of the corporation in1960.

Due to the promising future of Japan leasing industry, Oriental Leasing Co., Ltd.was established on April 17th, 1964and co-funded by three trading companies and five banks including Nichimen, Nissho and Iwai ( currently the Sojitz Corporation), the Sanwa Bank ( currently the Mitsubishi UFJ Financial Group Inc.), Toyo Trust & Banking ( currently the Mitsubishi UFJ Trust & Bank Corporation), Industrial Bank of Japan and Nippon Kangyo Bank ( currently the Mizuho Bank, Ltd., Mizuho Holdings, Inc.), and the Bank of Kobe ( currently the Sumitomo Mitsui Banking Corporation).

 

ORIX began operations with a staff of13-members, including the current Senior Chairman Yoshihiko Miyauchi, whoin that time,had just learned the leasing business in U.S. Leasing International Inc. and returned from the United States.

 

The period from the late 60s to the early 70swas just a constant growing period (known as "Izanagi Boom"), when ORIX introduced "lease", a new brand financial tool in Japan as a pioneer to lay the foundation ofdevelopmentin the ORIX Corporation.

 

With the unceasing expansion of investment on industrial equipmentduring the "Izanagi Boom", the first climax of entrepreneurial foundation ushered in leasing companies. Under the outstanding leadership of Inui Tsuneo, the representative director and general manager (from 1967 to 1980), ORIX Corporation successfully achieved the continuous increase of total leasing assets and constant expansion of the marketing service branches, transformed the past operational patterns of the corporation from the domination of shareholders of trading companies etc. into direct exchange, to lay a foundation towards independent operation.

 

On April 1970, six years since its foundation, ORIX Corporation was listed in the second section of Osaka Securities Exchange. On February 1973, ORIX shares were listed in the first section of the Tokyo and Nagoya Stock Exchanges and the Osaka Securities Exchange.




The picture above from left to rightshows respectively:the second president Tsuneo Inui, Yoshihiko Miyauchi and Mr. Schoenfeld from U.S. Leasing Inc. who began to provide expertise assistance in Japan's leasing field.


 


 

Overcoming the Turbulent Times in the First Oil Shocks of the 1970s through Diversification and Internationalization.


During the 20th century (70s), the gradual maturing of the Japanese leasing industry and the Japanese economy was adversely affected by the two oil shocks of 1973 and 1979, resulting in reduced investment of companies onthe equipment and increased fluctuation in exchange rates of yen.

 

Despite such adverse conditions, ORIX achieveda steady growth by expanding and diversifying its range of products and services to include financing, computer operating leasing and ship leasing.

 

In addition, ORIX began to promote the establishment ofvarious specialized leasing companiesstarting with the establishment of ORIX Alpha Corporation in 1972, whichwas specialized on storesdecoration (now integrated within ORIX Corporation in terms of its business), as well as ORIX Auto Leasing Corporation (presently ORIX Auto Corporation) and ORIX Rentec Corporation, Japan's first electronic measuring instrument rental company, in 1976was successively founded. On the other hand, the Family Consumer Credit Corporation characterized with credit company (now ORIX Credit Corporation, presently specializedin credit card loans) was established in 1979by offering services to private individuals.

 

Meanwhile, ORIX startedactive overseas expansion, startingbyits first overseas' establishment in 1971in Hong Kong, followed by Singapore in 1972, Malaysia in 1973, Indonesia in 1975, South Korea in 1975, Philippines in 1977and Thailand in1978.

 




Signing ceremony for the establishment of a joint venture company with two local banks in Singapore in 1972.


 


 

  Develop Group Operational Mode on the Right Track to Accelerate the Construction of Diversified Financial Service Industry in the 1980s
 
In the 80s, with the growing new entrants and competition in the leasing industry, based on providing more leasing products with various added values, the allexisting leasing companies at attempted to increaseoverseabusiness. During this period, ORIX expanded its business in Sri Lanka, Taiwan, China, Australiaand Pakistan, laying the foundation for the corporation's development in Asia and the Middle East region.

 

In 1980, taking the position of Tsuneo Inui,Yoshihiko Miyauchi (currently ORIX's Senior Chairman) was appointedas Representative Director and President. Meanwhile, ORIX's new president put forward operational strategy of“Strengthening group operation”,dedicated to furtherimproving information delivery and cooperative system. Until today, this strategyof providingdiversified products and services to clients born with the concept of “strengthening group operation” is still a fundamental one guiding ORIX to its continuous development.

 

Besides, ORIX began its quick loan business through establishment of mortgage business department and general-purpose equipment department (now the OQL Sales Department) in 1980. Oriental Capital (nowadays the ORIX Capital), focused on venture capital business, was established in 1983, and the Japanese Auto Short-term Rental Service Corporation (now ORIX Auto Corporation) was established in 1985. The aircraft leasing became available in ORIX in 1985, and in 1986, ORIX's real estate business was started withthe rental business of dormitory accommodation for single individuals.
Moreover, from then on, ORIXactively introduced a new management strategies such as M&A etc., and investedon Akane Securities K.K. (which became ORIX Securities Corporation in 1985 and is now merged in MONEX,INC. in 2010)in 1986 and Osaka Ichioka Corporation (now ORIX Accommodation Corporation), which is concentratedon real estate and operational business, in order to further expand its array of diversified operational strategy.

 

In 1989, to meet the requirement of international and diversified financial service and further solidify and strengthen the business connection between each corporation in the group, ORIX introduced the Group CI. The name “Oriental Leasing Co., Ltd.”was also changed into “ORIX Corporation”. In 1988, one year before its name was changed, ORIX acquired the Hankyu Braves (now called the ORIX Buffaloes) and started to be engaged in professional baseball teams. All these activitieswere a great favor to raise the corporation's recognition as well as the cohesiveness of the group.

 




Reception celebration of the appointment of Yoshihiko Miyauchi as President, at 45 years old in 1980


 


 


Constantly Expanding New Business Field with Unique Products and Services in the 1990s


In spite of the stagnationperiod after the collapse of Japan's bubble economyin the 90s,the particular fragile and instable financial system in the late 90s, ORIX continued to further develop its business.

 

In 1991, ORIX Life Insurance Corporation was established and ORIX entered the life insurance business. In 1997, ORIX was assigned to leasing securities, and ORIX Asset Management and Loan Services Corporation was established in 1999. In addition, ORIX provided the first securitized non-recourse loans with the precondition of securitized products in Japan, which also paved the way towards a period of leap growth in the investment banking business in 2000.

 

Onthe other hand, the 90s was also an early stagefor ORIX to engage in the retail business. In September1997, ORIX Life Insurance Corporation started life insurance sales by mail-order, anepoch-making way of selling at that time.
Moreover, ORIX purchased Yamaichi Trust & Bank, Ltd. (currentlyORIX Trust &Bank Corporation) in 1998, and it is nowadays providing unique products such as internet customized fix time deposit, investment and loan for real estate.

 

To be engaged in business fields related to real estate, Real Estate Corporation (presently ORIX Real Estate Corporation) was established in 1999 to integratethe business of residential building sales and the development of office buildingswhich first began in 1993,in order toconstantly strengthen the professional level of ORIX in the real estate industry.
In addition, the ORIX Environmental Corporation was established to participate in the development of environmental business.
In 1998, ORIX was successfully listed in the New York Stock Exchange and bravely put itself under the strict supervision of SEC(U.S. Securities and Exchange Commission), to constantly strengthen the administration of ORIX.

 





Yoshihiko Miyauchi ringing the opening bell at NYSE upon ORIX's listing in 1998


 



 

  Step out of the Depression of Financial Crisis and Move a Big Step on a New Stage of Business after its Record-high Revenue in the 21st Century.


In2000s, several fields of ORIX's bilateral developmentbegan to show some effects. A solid revenue increase modeis constructed through the bilateral development both in home and abroad, for the businessof corporation legal person and of individuals, and forthe profit of assets and commission charges.

 

Particularly, the rapid growth of the investment banking business was a significant driver to ORIX's overall performance improvement. ORIX Asset Management and Loan Services Corporation, with its accumulated securities reclamation experience, its total trusted assetsconstantly raised,and with the popularization of securitized financial tools, the non-recourse loans of real estate also increased. On the other hand, ORIX participated in the reestablishment and regeneration of large corporation, and successively invested in Aozora Bank in 2000 and Daikyo Corporation in 2005. In 2003, ORIX established ORIX M&A Solutions Corporation, and purchased the U.S. investment bank Houlihan Lokey Howard & Zukin in 2006.
In 2002, ORIX accomplished a practical service system aimed at the realization ofa low-carbon society with the establishment of the Environment and EnergyDepartmentof ORIX Environmental Resources Corporation.

 

ORIX also actively expanded operation business in the real estate. ORIX operates a wide variety of businessincluding golf courses, hotels and inns, aquariums and residential buildings for senior persons.
ORIX undertook its overseas expansion by re-challenging China. In 2004, ORIX established a technology leasing corporation in Tianjin, and in 2005 established a leasing corporation in Shanghai. In 2009, ORIX established its Chinese Headquarters in Dalian. Besides, ORIX also set up local legalsubsidiaries in Saudi Arabia, the United Arab Emirates and Kazakhstan.

 

As for the corporation performance, allstrategies and measures were fruitful in all fields of ORIX. The profit indexes of the four consecutive years from the fiscal year March 2004 to the fiscal year March 2007 all reached the historical high. During the fiscal year of March 2007, ORIX recorded a net income of 196.5 billion yen and the total stuff grew to an unprecedented number of 16,662. Owning to the“unique”servicerendered by diversified business, ORIX has constantly been accepted by a wide range of clients.

 

In 2007, the global financial crisis stemming from the U.S. Sub-prime Loan Crisisbrought about the dysfunctionin the capital market and triggered a rapid shrinkagein the credit market after the Lehman Shock in September 2008. ORIX responded to the unprecedented financial crisis by taking measures for “Strengthening the Performance of Corporation” and “Restructuring its Own Business”. ORIX achieved an unexpected growth in the net income of 21.9 billion yen in the fiscal year of March 2009, while leading domestic and overseas financial institutionswhich deeply suffered from financial deficit. Since then, ORIX's performanceis still being constantly improved. Except forthe deficitin the initiative period of its establishment, ORIX has ensured annual profit and continuousgrowthregardless ofdramatically changing environment such as oil shocks, the collapse of the bubble economy and the recent financial storm.

 

Having overcome the financial crisis, the futuredevelopment strategy determined by ORIXis to accelerate the pace of “Finance + Services” and to dedicate it tothe exploration ofemerging markets such as Asia.”

 




“THE TOKYO TOWERS” developed by ORIX Real Estate


 


Greater China History

 

  1971




ORIX Corporation was one of the earliest overseas-funded enterprises to enter China.
In 1971, it established the first overseas company, ORIX Asia Limited, in Hong Kong.


 

  1981




At the beginning of the Chinese economic reforms in 1979, Mr. Rong Yiren, former Vice President of the PRC, established the China International Trust and Investment Corporation and decided to introduce financial leasing. Eventually, he made a decision to cooperate with Oriental Leasing Co., Ltd. (the predecessor of ORIX Corporation), Japan's largest financial leasing corporation.


In 1981, the first financial leasing company in China, China Oriental Leasing Co., Ltd., was established in Beijing.

  1981 to 2009




Over the following 30 years, ORIX's business grew steadily in the Greater China Region.


In February 1991, ORIX Taiwan Corporation was established.


In August 2005, ORIX China Corporation was established in Shanghai.


In February 2006, the first railway financial leasing company, China Railway Leasing Co., Ltd., was established as a joint venture between ORIX and China Railway Materials Commercial Corp.

In March 2006, ORIX and CAS Holdings, an affiliate of the Chinese Academy of Sciences, established Oriental Jicheng Technology Co., Ltd., as a joint venture. Today, the company has already become a leading integrated service provider in China's electronic testing and measurement sector.

 

  Since 2009




Over the following 30 years, ORIX's business grew steadily in the Greater China Region.


At the end of 2009, ORIX drew up a plan for its business development in the Greater China Region. The corporation established its headquarters in Dalian, and intensified the development of their business in the Greater China Region.


In May 2012, ORIX and Pangda Group jointly established the Pang Da ORIX Auto Leasing Co., Ltd., which was the first Sino-Japanese joint venture to specialize in automobile leasing.


So far, ORIX Corporation has set up affiliated agencies in over 10 major cities, including: Beijing, Shanghai, Dalian, Tianjin, Shenzhen, Suzhou, Hong Kong and Taiwan. ORIX's Greater China Region operations will inherit the corporation's successful model of “finance + industry” and “finance + services” to establish a comprehensive financial service corporation rooted in China that grows hand in hand with its Chinese partners and client enterprises to create brilliance together.

Orix Corporation in the Greater China Region consists of 10 corporations including ORIX China Investment Corporation (OCIC, the headquarters of ORIX Corporation in the Greater China Region), ORIX Asia Limited (OAL), ORIX Asia Capital (OAC), ORIX Taiwan Corporation (OTC), ORIX Auto Leasing Taiwan Corporation (OALT), ORIX Taiwan Asset Management Company (OTAMC), ORIX China Corporation (OCC), PD-ORIX Automobile Leasing (PangDaORIX), Beijing Oriental Jicheng Co., Ltd. (BOJ), and China Railway Leasing Co., Ltd. (CRLC).