ORIX Corporation (NYSE:IX) Q1 2025 Earnings Conference Call August 5, 2024 3:30 AM ET
Company Participants
Nakane - Investor Relations and Sustainability Department
Kazuki Yamamoto - Operating Officer, Corporate Planning and Investor Relations
Conference Call Participants
Masao Muraki - SMBC Nikko
Kazuki Watanabe - Daiwa Securities
Naruhiko Sakamaki - Mizuho Securities
Koki Sato - JPMorgan Securities
Kiyoaki Suzuki - Nomura Securities
Koichi Niwa - Citi Group Securities
Nakane
It's time to begin the meeting. Thank you for joining us for ORIX Corporation First Quarter Consolidated Financial Results for the three-month period ended June 30, 2024. I'm from the Investor Relations and the Sustainability Department. My name is Nakane. I've been seeing this program, and today's attendee is Kazuki Yamamoto, Operating Officer responsible for Investor Relations.
As we begin, we have a request to the participants. In order to present feedback, if you have a mobile phone or other telecommunication devices nearby, please make sure that it is turned off or away from the telephone. Yamamoto will provide an explanation and this will be followed by Q&A. The program will last approximately 1 hour.
Mr. Yamamoto, please begin.
Kazuki Yamamoto
Thank you very much for the introduction, and thank you for joining ORIX Group's earnings meeting, despite your busy schedule. My name is Yamamoto, Operating Officer in charge of Corporate Planning and Investor Relations. Without further ado, we'd like to get started.
Please turn to page two for the executive summary. Some of the four highlights. The first is on the net income. Q1 net income was up 38% year-over-year to JPY86.7 billion, bringing annualized ROE to 8.7%. This represents 22% of our full-year net income target of JPY390 billion, which is given the seasonality of ORIX's earnings. We view this as a solid start to the year.
Finance category, in the three categories that we newly introduced in Q4 of last fiscal year, continues to generate steady earnings. Profits grew in the insurance segment during Q1. In the operation category, airport concessions continue to post earnings growth. In the investment category achieved 20% of the full-year profit target, while profits grew significantly at 194% year-over-year thanks to domestic PE exits.
The second key point to look at is in inbound tourism. Profits of three inbound related businesses in total was up 78% to JPY6.9 billion year-over-year, thanks to aircraft using and in Aircraft and Ships on an ongoing profit expansion in the airport concession business, including Kansai International Airport and hotels and in the real estate facilities operation.