Higher profitability than peers Record of strengthening risk management in response to external changes Expanding revenue sources thanks to increased portfolio diversification Susceptibility to market volatility of businesses, and large borrowers and investees in its portfolio Foreign currency funding, which accounts for about 40% of total funding, is more sensitive to market deterioration than local currency funding Potential increases in geographic and organizational complexities alongside business expansion The stable outlook reflects our view that Orix will maintain high profitability and continue to manage its risks and asset portfolio flexibly in response to changing external conditions over the next two years. We expect its risk-adjusted capital (RAC) ratio to stay at 9.5%-10% over the same period. We will consider a downgrade
