Niwa

Niwa from Citigroup asked about ORIX's management resource allocation and appetite for the Japanese market, specifically identifying better areas for focus, signs of improved financing demand, and alignment with the central government's 17 strategic domains. He followed up by asking if the ratio of domestic business to overseas business is expected to increase compared to the mid-term plan.

Answer

Kazuki Yamamoto, Operating Officer, identified promising domestic areas in the real economy, including mid-market private equity, manufacturing, lease, and CapEx investments, noting strengthening demand due to rising interest rates and smoother auto lease negotiations. While no direct alignment with the government's 17 strategic domains, ORIX will identify adjacent areas, citing SOMEC as an example, and capture opportunities from active private sectors driven by governmental budget and financing. He stated that the overseas versus domestic business ratio is not expected to change largely, with more information to be provided in May.

Niwa asked about ORIX's management resource allocation and appetite for the Japanese market, specifically identifying better areas to focus on and signs of improved financing demand. Niwa also questioned if ORIX's business aligns with the central government's 17 strategic domains and how the overseas versus domestic ratio compares to the mid-term plan.

Answer

Kazuki Yamamoto, Operating Officer, ORIX, identified promising domestic areas including mid-market private equity, manufacturing, and real economy-related sectors, noting strengthening demand for lease and CapEx investments, and improved auto lease retention. He mentioned ORIX's focus on adjacent areas to the government's 17 pillars, such as shipbuilding-related intermediate businesses. Yamamoto stated that the overseas versus domestic ratio is not expected to change largely, with good expectations in aircraft and ships in Asia, and more information will be provided in May.