Section 1 Conflict Minerals Disclosure
ITEM 1.01 Conflict Minerals Disclosure and Report
Introduction
This specialized disclosure report on Form
SD for the reporting period from January 1 to December 31, 2018 (the Reporting Period) is presented to comply with Rule
13p-1
under the Securities Exchange Act of 1934 (the
Rule). The Rule was adopted by the United States Securities and Exchange Commission (the SEC) to implement reporting and disclosure requirements related to conflict minerals as directed by the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). Conflict Minerals (CMs) are defined as columbite-tantalite (coltan), cassiterite, gold, wolframite, and their derivatives, which are limited to tantalum, tin and
tungsten. The Rule applies to SEC registrants that manufacture or contract to manufacture products that contain CMs that are necessary to the products functionality or production. The following should be read in conjunction with the
definitions contained in the SEC instructions to Form SD and related rules.
Company Overview
ORIX Kabushiki Kaisha (translated into English, ORIX Corporation) and its subsidiaries (collectively, ORIX Group) provide a broad range of
primarily finance-related products and services to Japanese and international customers. ORIX Group operates in six business segments: Corporate Financial Services, Maintenance Leasing, Real Estate, Investment and Operation, Retail, and Overseas
Business. The Corporate Financial Services segment offers leasing and loans to small and
medium-sized
enterprises. The Maintenance Leasing segment consists of automobile and equipment leasing and rentals and
car sharing businesses. The Real Estate segment is engaged in property development and leasing, real estate finance and facilities management. The Investment and Operation segment comprises environment and energy businesses, principal investments,
loan servicing and concession business. The Retail segment offers life insurance, banking, and card loan services. The Overseas Business segment engages in financial services through overseas subsidiaries, business development and investment with
business partners abroad, and aircraft and ship leasing businesses.
Based on an internal review and assessment of ORIX Groups businesses and
operations (covering more than 900 entities), ORIX Corporation identified two consolidated subsidiaries, Ubiteq, Inc. (Ubiteq) and Koike Co., Ltd. (Koike; collectively with Ubiteq, the Relevant Subsidiaries), that
manufactured or contracted to manufacture products for which CMs are necessary to their functionality or production during the Reporting Period.
As of
December 31, 2018, ORIX Corporation owned 57.64% of the total number of outstanding shares of Ubiteq and had the power to appoint four out of Ubiteqs seven directors, and for the Reporting Period, Ubiteq accounted for approximately 0.08%
of ORIX Groups total revenue. As of the same date, ORIX Corporation owned 95.83% of the total number of outstanding shares of Koike, and for the Reporting Period, Koike accounted for approximately 0.43% of ORIX Groups total revenue.
Relevant Subsidiaries Overview
Ubiteq
. Ubiteq is
a Japanese public company listed on the JASDAQ Securities Exchange. Ubiteq provides a range of computer- and network-related products and solutions, including product planning, design and development, fabless production and sales, and maintenance.
Ubiteqs business is primarily composed of two segments: Electronic Equipment and Mobile and Ubiquitous Technology. The Electronic Equipment segment develops and produces imaging solutions, electronic system solutions, hardware circuit and
software, assesses prototypes and assists with original equipment manufacturer production. The Mobile and Ubiquitous Technology segment develops and produces mobile technology solutions and communications infrastructures.
Ubiteq is a fabless production company that outsources production and raw material procurement to its suppliers. Based on an internal review and assessment,
Ubiteq identified six products it contracted to manufacture during the Reporting Period that contained CMs: two types of magnetometers in financial terminals, one type of vehicle telematic device, one type of vehicle car sharing device, and two
types of karaoke machine components (the Ubiteq Covered Products). The magnetometers in financial terminals contained gold, tantalum, tin and tungsten, the vehicle telematic device contained gold and tin, the vehicle car sharing device
contained gold, tantalum, tin and tungsten and the karaoke machine component contained gold, tantalum and tin. In each case, the CMs are necessary to the functionality of the Ubiteq Covered Product. These products account for approximately 80.4% of
Ubiteqs total revenue for the Reporting Period.
Koike
. Koike is a consolidated subsidiary of ORIX Corporation organized and operating in
Japan. Koike manufactures and markets lithium tantalate surface acoustic wave (SAW) wafers, lithium niobate SAW wafers and quartz SAW wafers that are used as substrates for mobile communication equipment such as mobile phones.
Based on an internal review and assessment, Koike identified one type of product, lithium tantalate wafers, that it manufactured during the Reporting Period
that contained CMs, specifically tantalum (the Koike Covered Product; collectively with the Ubiteq Covered Products, the Covered Products). Tantalum is necessary to the functionality of the Koike Covered Product. The Koike
Covered Product accounts for approximately 45.8% of Koikes total revenue for the Reporting Period.