TOKYO, Japan - August 6, 2012 - ORIX Corporation (TSE: 8591; NYSE: IX), a leading integrated financial services group, announced today that it has reached an agreement with Nissei Build Kogyo Co., Ltd. to cooperate in the sale of mechanical car parking systems to condominium management associations across Japan.
The combination of Nissei Build Kogyo's mechanical car parking systems and ORIX's finance function will promote the smooth renovation of condominiums by supporting management association's financial plans.
Under this scheme, when a condominium parking system is replaced, an ORIX leasing or hire purchase contract will be used to avoid the burden of high initial costs on the management association. Rather, the management association will repay the cost in fixed monthly installments from parking fees and other income. This will allow management associations to avoid using renovation reserves, allowing them to effectively use their reserves for other renovations and capital expenditures besides parking.
Furthermore, Nissei Build Kogyo's latest parking systems will be introduced, minimizing electricity, maintenance and other running costs, leading to improved financial conditions for condominium management associations.
As a result of a building boom of owner-occupied condominiums in the 1980s, there are now many condominiums in Japan over 30 years old and facing major renovations. However, around 43% of the management associations of these condominiums have insufficient reserves to pay for these renovations*. Mechanical car parking systems are particularly expensive to replace, and there is therefore a tendency for these associations to eschew the replacement of existing parking facilities.
ORIX aims to provide wide-ranging services to condominium management associations, by leveraging the ORIX Group's sales network and knowledge, while seeking to capture more mutual business synergies.
*Nikkei Research survey (November 2006, owner-occupied condominiums 20 years or older)
*Under a leasing agreement, the parking system will transfer to the management association at the end of the lease term.
ORIX Corporation (TSE: 8591; NYSE: IX) is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 27 countries and regions worldwide, ORIX's activities include corporate financial services, such as leases and loans, as well as automobile operations, rental operations, real estate, life insurance, banking and loan servicing. For more details, please visit our website at:http://www.orix.co.jp/grp/en/
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2011 - March 31, 2012."