Tsujima

Tsujima from Bank of America questioned why earnings were not revised upward despite valuation and capital gains in Asia and North America, given ORIX's previously stringent scrutiny and cautious investment stance. She asked if the outlook was incorrect or if losses were anticipated elsewhere, and if an upward trend could be expected in Q4. She also inquired about the backdrop and appeal behind Robeco's significant 18% Q-on-Q AUM increase.

Answer

Kazuki Yamamoto, Operating Officer, acknowledged a nuanced difference in the outlook, particularly for US PE investees in technology, where fair value expansion led to actual gains. He noted that Asia saw mixed situations, with some recoveries. ORIX maintains a conservative risk appetite, refraining from aggressive investments. For Q4, they are scrutinizing business lines like Erawan and real estate to take proactive actions if immediate recovery is not foreseen, which might lead to further evaluation gains or losses. Regarding Robeco's AUM, Yamamoto referred to page 27, explaining that a sizable fund mandate was secured, and the strong equity market contributed to the growth. He emphasized the goal of enhancing profitability alongside AUM growth, navigating tough fee income competition by focusing on qualitative improvements.