Kazuo Kojima. Yuichi Nishigori. September 10, 2012

Transcription

1 ORIX Corporation Business Seminar About the Energy and Environment Business Kazuo Kojima Yuichi Nishigori Corporate Executive Vice President, Head of Domestic Sales Administrative HQ Executive Officer Head of Investment and Operation HQ September 10, 2012 Copyright 2012 ORIX Corporation All rights reserved.

2 Disclaimer These materials have been prepared by ORIX Corporation ( ORIX or the Company ) solely for your information and are subject to change without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No representations, warranties or undertakings, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness, or correctness of the information or the opinions presented or contained in these materials. These materials contain forward-looking statements that reflect the Company s intent, belief and current expectations about future events and financial results. These statements can be recognized by the use of words such as expects, plans, will, estimates, projects projects, intends intends, or words of similar meaning. These forward-looking statements are not guarantees of future performance. They are based on a number of assumptions about the Company s operations and are subject to risks, uncertainties and other factors beyond the Company s control. Accordingly, actual results may differ materially from these forward-looking statements. Factors that could cause such differences include, but are not limited to, those described under Risk Factors in the Company s most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission and under Business Risk of the securities report (yukashouken houkokusho) ) filed with the Director of the kanto local Finance Bureau. Nothing in this document shall be considered as an offer to sell or solicitation of an offer to buy any security, commodity or other instrument, including securities issued by the Company or any affiliate thereof. Copyright 2012 ORIX Corporation All rights reserved. 1

3 Contents I. Solar Panel Business Related p. 3 II. Business Areas p. 6 III. Future Potential p. 10 Copyright 2012 ORIX Corporation All rights reserved. 2

4 Solar Panel Related Business From 7/25 Results Presentation Entry into the mega solar business (1) Mega solar business Expect to invest 100MW / 30bn yen in the next 3 years Also look into raising i nonrecourse loans and structuring fund ASAP (2) Rooftop solar power generation business Install in factories and warehouses owned by customers, or ORIX facilities Expect 100MW / 24bn yen in the next 3 years ASAP Enhancement of the Solar Panel Distribution business Aimed toward power plants. ORIX will purchase the panels, arrange design and installation with engineering companies, and arrange finance Surge in inquiries from locations nationwide Target 70MW this FY Copyright 2012 ORIX Corporation All rights reserved. 3

5 Solar Panel Related Business: Competitive edge, Profitability Profitability 10% - 15% IRR, on the premise of creating a fund (mega solar) Cause of change in profitability Solution Panel failure Operation halted due to natural disaster Unseasonable weather Manufacturer No cost replacement with year guarantee performance guarantee Property insurance N/A Consider pros and cons of locations and insurance for earthquakes and tsunami Create an in-house plan based on public data Possible to avoid risk from price changes. Legal changes N/A Not possible to avoid risk from legal changes. Competitive Edge Panel sales since 2010 Nationwide mega solar location and rooftop information Long-term credit risk screening (Rooftop installation) Copyright 2012 ORIX Corporation All rights reserved. 4

6 Solar Panel Related Business: Solar Power + Storage System Corporate clients: In test demonstration with NEC Community CEMS Energy Service EV Charger Storage Demand System Response Corporation BEMS Energy Flow Info Flow Producer Generation Equipment Storage System Residential Storage System HEMS Storage System ESCO, Energy Conservation Service Electricity Supply, Sales Transmitter Transformer Monitor and Control System Storage System Copyright 2012 ORIX Corporation All rights reserved. 5

7 Business Areas: Move to Neighboring Fields Energy Derived from leasing and consulting Leasing Derived from proper lease asset disposal Entrance into the Electric Business Electricity ESCO Business Wholesale/Retail 2000 Electricity Business Regulatory Reform (Wholesale liberation) 1990s Expansion into Energy-saving Services Japan Electric Power Exchange Established 2000s Sale of Solar Power Systems Electric Use Visibility Began Electricity Generation Revised Energy Saving Law in Force Began Bio Mass Power Plant Operation Expansion into Renewable Energy Act on Special Measures Concerning Procurement of Renewable Electric Energy 2010s Mega Solar Business Aggregator Business Feed-in Tariff System Starts Kyoto Protocol Adopted Law for Establishing the Kyoto Protocol Effective Tokyo Metropolitan Ordinance on Environmental Waste Disposal Law Recycling-Based Amendment to Act on Promotion Preservation Enacted Strengthened Society of Global Warming Countermeasures COP10 Convention on Biodiversity held Alliance with Chinese Academy of Science Commissioned for water and sewage infrastructure survey Waste Intermediary Waste Services Recycling Waste Processing 1998 Facility Operation Investment in China Water Affairs Network Creation Processing Facility Operation Environment Expansion in Asia Expansion into Water Business Copyright 2012 ORIX Corporation All rights reserved. 6

8 Business Areas: Domestic Electricity-Related Business Multiple contact points ranging from generation and office/residential energy saving Biomass Power Generation Solar Power Generation Power Generation Geothermal Power Generation Wind Power Generation Case Study Agatsuma Bio Power Began operation in MW Wood chip power generation Supply Electricity Sales Bulk Electricity Purchasing Suginoi Geothermal Power (in the Suginoi Hotel) Began operation in 2006 Office / Residential Energy Saving ESCO Visibility / Automatic Control Smart Town Underline denotes services for corporate clients Bulk electric power purchasing service for condominiums Began in 2010 Yokohama Green Power (YGP) business in Yokohama City Copyright 2012 ORIX Corporation All rights reserved. 7

9 Energy Saving Proposal Case Study: Evolution of ESCO Business Beginning in 2000, 10 years of accumulated know-how Started with commercial facilities, expanded to factories, logistics centers and offices ORIX s strength is the ability to provide a total solution including finance (Examples) Industrial (Factory) Operational (Logistics Center, Commercial Facility, Office) Pharmaceutical Company Factory -Converted boiler fuel from heavy oil to LNG Paper Company Factory -Converted boiler fuel from heavy oil to RPF* Office Building -BEMS*, high efficiency air conditioning and lighting implemented Logistics Facility -LED lighting, high efficiency cargo elevator implemented *Refuse Paper and Plastic Fuel *Building and Energy Management System ESCO(Energy Service Company)businesses provide comprehensive building energy assessment, analysis, energy saving equipment implementation, performance verification and equipment maintenance. Application for performance guarantees and subsidies are also handled for the client. Copyright 2012 ORIX Corporation All rights reserved. 8

10 Supply Proposal Case Study: Electricity Sales Began sales in 2009 along with electricity deregulation Supply 350,000kW to 3,000 locations, primarily small and medium-sized facilities Recently began aggregator services, conserving electricity through h aggregated demandd Looking for chance to establish new power generation facility or M&A due to increased demand for power Electricity Sales Aggregator Business: Full start in October ORIX Power company generators 1.Supply 1.Backup Power company's electric power distribution system 2.Receipt 3.Distribution 4.Use 4.Use Customers Customers Provide monitoring and control equipment to small and mid-sized facilities (50-500kW). Support formulation of energy saving activities ORIX provides 1) current use, 2) estimated demand, 3) information from the government and power companies Cuts client peak use, reducing costs. A portion of the cost cut goes to ORIX Copyright 2012 ORIX Corporation All rights reserved. 9

11 Future Potential: Business Scale Image Current business has room to grow both assets and profit Aim for dramatic growth over the next 3 years through the further accumulation of new investments Profit Assets Copyright 2012 ORIX Corporation All rights reserved. 10

12 Future Potential: Overseas Expand energy-saving/power generation business that meets local needs. Also consider launching water business - M&As with Technology Company, Equipment Manufacturer and Operator Blue:On-going g Project Red:Future Potential China:Established Hong Kong Team Develop energy-saving market, alliance with CAS, investment in CWA Sri Lanka: Capital participation in a biofuel plant Malaysia, Thailand: Operate bio-mass power plant Indonesia: Feasibility study of sewer pipelines and waste water treatment plant Power generation business Vietnam: Feasibility study of sewage system Operation and maintenance of country s largest waste water treatment plant The Philippines ESCO power generation - Alliances with governmental bodies business Copyright 2012 ORIX Corporation All rights reserved. 11

13 Future Potential: Japan -Sales Network- Growth cycle based on nationwide network (76 locations) and wide-ranging contacts with corporate companies Take a new idea formulated from customer relations and create a business Swift and extensive expansion using nationwide network *ESCO and electric power trading are both new businesses that emerged from domestic sales and have expanded through the nationwide sales network Sales close the deals themselves on solar panel distribution Ex: Freight carrier, warehousing business, mass retailer, manufacturers factories, wedding halls, event halls, unused land Gather information on Mega solar sites and rooftop installment Ex: former site of auto manufacturer distribution base (Tohoku, 33,000 mil m 2, 2MW), former factory site of material manufacturers (Chubu, 33,000 mil m 2, 2.2MW), food company factory rooftop (Chubu, 1.5MW) Copyright 2012 ORIX Corporation All rights reserved. 12

14 Future Potential: Japan -Aim of Matrix Strategy- In the past Separate strategy and target Introduced customers to each other but contacted separately Matrix Strategy ORIX Auto Rentec Environment and Energy Strategy / Target Strategy / Target Strategy / Target Strategy / Target Shared Target and Strategy Combined Marketing Best Mix of Organization / Policies i amo ng Group Compa anies Shared lis st of blue e-chip co mpanies Customers Customers Customers Customers Copyright 2012 ORIX Corporation All rights reserved. 13

15 Future Potential: Japan -Matrix Strategy and Growth- Use centrifugal force of each business to expand the market Steady growth through strengthening centripetal force by combining customers and products Pursue development of new products and business models on top of the platform Auto Domestic Sales Rentec Existing Market New Business New Area Customer Sales Platform Provide each product to each customer Limited growth due to changes in the environment and market maturity Promote matrix strategy through combined marketing and shared customer list Reestablish sales platform and optimize the use of resources Energy and Environment Area Expand new business area using solid platform Copyright 2012 ORIX Corporation All rights reserved. 14

16 Additional Information For annual and more historical data please access our website. A list of major disclosure materials is given below. ORIX Website: URL: IR Website: URL: Financial Reports: URL: Five Year Financial Data: URL: / / / /f / If you would like to be included on our list for major news announcements, please send your request to the address below. ORIX Corporation Corporate Planning Department Mita NN Bldg., Shiba, Minato-ku, Tokyo , Japan Tel: Fax: gregory_melchior@orix.co.jp haruyasu_yamada@orix.co.jpyamada@orix Copyright 2012 ORIX Corporation All rights reserved. 15