Segment Topics [Real Estate Segment] Leveraging expertise to expand the facilities operation business In its Real Estate segment, ORIX maintains considerable specialist to intangible assets (facilities operation business by capitalizing its spe- expertise in real estate development, rental, and finance. Drawing on cialist expertise and know-how). In specific terms, ORIX Real Estate these specialist skills, the Company is expanding its business into the Corporation is active in the operation of a variety of facilities. Making high value-added asset management and facilities operation fields. In the most of this accumulated operating know-how, steps are being this context, ORIX is looking to rebuild its earnings base from its tangi- taken to open new facilities. On this basis, the business is expected to ble assets (real estate business linked closely with market conditions) expand, providing a stable earnings base. Japanese Inns: Operation and Business Rehabilitation Know-How Beginning with the Suginoi Hotel in Oita Prefecture in September 2002, ORIX has to date provided support activities in the reorganization and rehabilitation of five well-established and renowned Japanese inns across the country. In addi- tion to putting forward wide-ranging operating and marketing initiatives, ORIX has provided management advice while overseeing new capital investment. In each case, the inn has been transformed into a facility with increased customer appeal. ORIX began providing support to the Naruko Hotel in Miyagi Prefecture from November 2006. On completing its support activities in October 2011, the hotel was re-acquired by its former management team. More recently, and Tateshina Grand Hotel after providing support from September 2011, the Tateshina Grand Hotel Taki-no-yu reopened in April 2012. While Taki-no-yu retaining its ambiance as a traditional hot-spring inn, new initiatives including a lobby fireplace, large spa facility with views of the local waterfall, and a buffet restaurant featuring local delights, all provide additional guest appeal. Dome and Theater: Hall Operation Know-How ORIX commenced operating management of the Kyocera Dome Osaka in Osaka Prefecture from September 2006. This facility not only serves as the home ground for the ORIX Buffaloes professional baseball team, but also as a venue for concerts, exhibitions, fairs as well as sporting and other events. In April 2012, the old Osaka Welfare Pension Great Hall was completely renewed and opened as ORIX Theater. Employing the latest in audio and lighting equipment, ORIX Theater is used for a myriad of purposes including popular, rock and classical concerts as well as musicals, operas and theatrical shows. ORIX Theater Aquariums: Exhibition and Attraction Know-How ORIX has operated the Enoshima Aquarium, a PFI*1 with the Kanagawa Prefectural Government, since April 2004. The aquarium features a large tank that reproduces the environment of the Sagami Bay for an 8,000-strong school of sar- dines. A popular feature of the aquarium is its night tours, which allow visitors to view marine life at night. In March 2012, the Kyoto Aquarium in Kyoto Prefecture opened as Japan’s first*2 large-scale inland aquarium. The aquarium is made up of nine zones that recreate the connection of life from the source of Kyoto’s rivers to the sea. Kyoto Aquarium is designed to cater to the interest of a wide range of customers and aspires to be an “edutainment” *3 oriented facility where visitors can learn about nature and the local ecosystem while having fun in Kyoto. Kyoto Aquarium In May 2012, the Sumida Aquarium opened in Tokyo. Located in an urban area, the facility is open until 9:00 in the evening to cater to office workers who wish to visit after work. *1 PFI: Private Finance Initiative—a funding method for major public-sector capital investments where private firms are contracted to complete and manage the project utilizing private-sector management skills and technological capabilities. *2 Source: ORIX Real Estate. A large-scale inland aquarium is defined as an aquarium that is 50km from the coast with a total floor space of more than 10,000 m2. *3 Edutainment is a word that combines “education” and “entertainment.” It has become a popular expression in recent years for learn- ing while having fun at museums, art galleries and similar facilities. Located inside TOKYO SKY TREE TOWN®, the Sumida Aquarium is home to Japan’s largest indoor open pool tank. Masahiko Taumi Director This tank allows visitors to view up close penguins and fur seals. The Tokyo Main Tank reproduces the seas sur- Sumida Aquarium rounding the Ogasawara Islands, a World Natural Heritage Site, letting visitors experience the beauty of the islands 1,000km away from Tokyo. The aquarium employs an artificial seawater production system developed by TAISEI CORPORATION. Following in the footsteps of the Kyoto Aquarium, also operated by ORIX, this is the second facility in Japan to apply this system for all tank water (excluding freshwater tanks). In addition to reducing inland operating costs, this system eliminates the need for seawater which in turn helps to reduce CO2 emissions associated with transportation. 20 ORIX Corporation Annual Report 2012.