Advance Create Co., Ltd.

FY09/22 Results Briefing Materials(October 2021 to September 2022)

November 11, 2022
Securities code: 8798

Contents
I. FY09/22 Results Overview

3

 Results Highlights

4 Financial Statements

5 Segment Information

8

II. Advance Create Overview

11

III. Company Strategy

20

IV. Recent Developments

39

 Full-Year Forecast

44 Sustainability Management47

V. Supplementary Materials

502

I. FY09/22 Results Overview

3

FY09/22 Results Overview (1)FY09/22 Results Highlights― Consolidated Results ―Net sales and profits reached all-time highs
for the second consecutive fiscal year

Net sales¥11,860 million, up ¥841 million YoY (+7.6% YoY)

Operatingprofit¥2,061 million, up ¥19 million YoY (+1.0% YoY)

Ordinary
profit¥2,015 million, up ¥89 million YoY (+4.6% YoY)

Profit¥1,312 million, up ¥16 million YoY (+1.3% YoY)4

FY09/22 Results Overview (2)FY09/22 Income Statement (Consolidated)(Millions of yen)

Net sales
Insurance Agency business
ASP businessMedia businessMedia Representative Services business
Reinsurance business
Consolidation adjustments
Cost of revenue
Gross profit
Operating expenses
Operating profit
Insurance Agency business
ASP businessMedia businessMedia Representative Services business
Reinsurance business
Ordinary profit
ProfitEarnings per share (¥)

FY09/21

Composition(%)

FY09/22

Composition(%)

YoY change(%)

11,019100.0

11,860

100.0

7.6

9,103
195
1,030
807
942
(1,060)

82.6
1.8
9.4
7.3
8.6
(9.6)

9,548
206
1,795
1,177
1,030
(1,897)

80.5
1.7
15.1
9.9
8.7
(16.0)

4.9
5.9
74.2
45.8
9.3
－

2,451
8,567
6,525
2,041

22.3
77.7
59.2
18.5

2,637
9,222
7,161
2,061

22.2
77.8
60.4
17.4

7.6
7.6
9.7
1.0

1,472
50
221
165
129

13.4
0.5
2.0
1.5
1.2

1,395
57
418
141
46

11.8
0.5
3.5
1.2
0.4

-5.3
14.5
89.1
-14.3
-64.2

1,925
1,295
59.66

17.5
11.8

2,015
1,312
59.97

17.0
11.1

4.6
1.3

In the Insurance Agency business, sales increased due to a steady rise in face-to-face consultations, but operating profit was down mainly
because of higher fixed costs. In the ASP business, sales and operating profit were up due to consistent new sales of Advance Create Cloud
Platform (ACP) to independent agents. In the Media business, sales and operating profit rose as a result of steady ad placements on the
Hoken Ichiba website. In the Media Representative Services business, sales increased as a result of efforts to provide a variety of services
as an insurance-focused advertising agency, aided by our know-how in web marketing thanks to the operation of the Hoken Ichiba website.
But operating profit fell because of accepting orders with low gross profit margins in order to expand sales. In the Reinsurance business,sales remained strong, but operating profit was down due to higher reinsurance payouts caused by the effects of COVID-19.
5

FY09/22 Results Overview (3)FY09/22 Balance Sheet (Consolidated)(Millions of yen)

Current assets

End-FY09/21 End-FY09/22 Change

Cash and deposits

7,968
3,337

7,856
2,273

-111
-1,064

Accounts receivable - trade

1,406

2,231

824

Accounts receivable - other
Other

2,456
767

2,261
1,090

-195
323

Non-current assets

3,821

4,623

801

Property, plant andequipment

581

1,073

492

Intangible assets

792

1,002

209

Investment and other assets

2,447
17
11,8082,546
1112,49199-6
682

Deferred assets
Total assets(Millions of yen)

Current liabilities

End-FY09/21 End-FY09/22 Change
3,267

3,005

-262

283
2,983

310
2,695

26
-288

1,817

2,340

522

1,061
756
5,085
3,158
585

1,360
980
5,345
3,158
585

299
223
260
－
－

Total net assets

3,272
(404)
110
6,723

3,908
(552)
45
7,145

635
-148
-64
422

Total liabilities and net assets

11,80812,491

682

Short-term interest-bearing
debt
Other

Non-current liabilities
Long-term interest-bearing
debt
Other

Total liabilities
Share capital
Capital surplus

Retained earnings
Treasury shares
Other

AssetsTotal assets increased by ¥682 million fromend-FY09/21 to ¥12,491 million.
Current assets decreased by ¥111 million
from end-FY09/21, mainly due to a ¥1,064
million decrease in cash and deposits, whileaccounts receivable - trade rose by ¥824
million.
Non-current assets grew by ¥801 million
from end-FY09/21, owing primarily to a ¥313
million increase in leased assets and a ¥202
million increase in software.

Liabilities and Net Assets
Total liabilities increased by ¥260 million
from end-FY09/21 to ¥5,345 million, mainly
due to a ¥329 million increase in leaseobligations under non-current liabilities.
Total net assets grew by ¥422 million fromend-FY09/21 to ¥7,145 million. This mainlyreflected the booking of ¥1,312 million in
profit attributable to owners of parent, a ¥676
million decline due to the payment ofdividends of surplus, and a ¥148 million
increase in treasury shares.

6

FY09/22 Results Overview (4)FY09/22 Statement of Cash Flows (Consolidated)(Millions of yen)
Cash flows from operating activities

FY09/21

FY09/22

Change1,643

364-1,278

1,905

1,974

68

434

450

15

Increase (decrease) in trade receivables
Other
Subtotal

(307)
(166)
1,866

(824)
(360)
1,239

-516
-194
-627

Taxes paid, etc.

(223)

(874)

-651

Cash flows from investing activities

(485)

(391)

93

Cash flows from financing activities

(488)

(956)

-467

Interest-bearing debt related
income and expenditure

(326)

(140)

186

Dividends paid

(608)

(675)

-67

Other

445

(140)

-586

Effect of exchange rate change on cash and cash equivalents

－

48

48

Net increase (decrease) in cash and cash equivalents

668

(935)

-1,604

Cash and cash equivalents at beginning of period

2,537

3,206

Cash and cash equivalents at end of period

3,206

2,270

Profit before income taxes
Depreciation-935

Net cash provided by operating activities amounted to ¥364 million. This reflected ¥1,974 million in profit before income taxes,¥450 million in depreciation, a ¥824 million decrease in trade receivables, and ¥862 million in income taxes paid.
Net cash used in investing activities was ¥391 million. This was mainly due to ¥483 million for purchase of intangible assets,
while proceeds from sale of investment securities amounted to ¥142 million.
Net cash used in financing activities came to ¥956 million. This was primarily attributable to ¥200 million used for redemption ofbonds and ¥675 million in dividends paid.

7

FY09/22 Results Overview (5)Sales by Segment(Unit: Millions of yen)
1,030

851

942

1,250

1,030

807

807

1,795

775
1,177

1,065
724

677

8,347

8,709

195

183

182

832

8,923

9,103

9,548

26期
27期
前期比
FY09/21
FY09/22
YoY
再保険
942
9.3%
Reinsurance
942 1,030
1,030
9.3%
メディア
1,030
74.2%
Media
1,030 1,795
1,795
74.2%
メディアレップ
807
45.8%
Media Rep.
807 1,177
1,177
45.8%
ASP
195
206
5.9%
ASP
195
206
5.9%
保険代理店
9,103
9,548
4.9%
Insurance
9,103 13,758
9,548
4.9%
合計
12,080
13.9%
Agency206
Total
12,08013,758
13.9%

Up

13.9％
YoY
* Before consolidation adjustments

FY09/18
23期

FY09/19
24期

FY09/20
25期

FY09/2126期

FY09/2227期

8FY09/22 Results Overview (6)Operating profit by segment(Unit: Millions of yen)

46

129
418

221
165
50

141
57

FY09/21 FY09/22
Reinsurance
129
46
Media
221
418
Media Rep.
165
141
ASP
50
57
Insurance
1,472
1,395
Agency
Total
2,039
2,059

YoY
-64.2%
89.1%-14.3%
14.5%
-5.3%
1.0%

110
131
105

211

217

160

261
12

82

1,472

843

778

1,395

FY09/19
24期

FY09/20
25期

1.0％
YoY

868

* Before consolidation adjustments(92)
FY09/18
23期

Up

FY09/2126期

FY09/2227期

9FY09/22 Results Overview (7)Commemorative Dividend in Celebrationof the 20th Anniversary of Our ListingThank youThanks to your support, on April 23, 2022, Advance Create celebrated 20 years
since going public.
As part of the market reclassification executed by the Tokyo Stock Exchange, Inc.
on April 4, 2022, Advance Create moved from the First Section of the Tokyo Stock
Exchange to the Prime Market. In addition, on September 28 of the same year, wewere also listed on the Fukuoka Stock Exchange's Main Market.
To commemorate these milestones, we have decided to issue a special year-end
dividend of ¥2.5 per share as an expression of gratitude to our shareholders fortheir unwavering loyalty throughout the years.

Including the ordinary dividend, the year-end dividend for FY09/22 will be ¥17.5 pershare, for a total annual dividend of ¥32.5 per share.
10II. Advance Create Overview
Achieve Progress through Enhancing People andTechnology

11Advance Create Overview

About Advance Create
Advance Create is an insurtech company that is constantly innovating tochange the way people think about the insurance business.

Ｉｎｓｕｒａｎｃｅ Ａｇｅｎｃｙ
Business

Reinsurance BusinessＭｅｄｉａ Business

Ａｐｐｌｉｃａｔｉｏｎ Ｓｅｒｖｉｃｅ
Ｐｒｏｖｉｄｅｒ (ASP) BusinessＭｅｄｉａ Ｒｅｐ BusinessＢｕｓｉｎｅｓｓ Ｐｒｏｃｅｓｓ
Ｏｕｔｓｏｕｒｃｉｎｇ (BPO) BusinessCorporate Philosophy
Life is finite. Life's possibilities are infinite.
Life is time, and a life of value is born by living it to the fullest in the present moment.
We provide the best service in insurance, an economic means of expressing love, to those who live in thepresent. At the same time, we are committed to making a lasting contribution to society by fostering humanresources who can create infinite possibilities.

12Advance Create Overview

Long-Term Performance
Net sales

売上高（左軸・百万円）(left axis; millions of yen)

Ordinary profit
経常利益（右軸・百万円）(right axis; millions of yen)

Listed on the First Section of theTokyo Stock Exchange

16,000Began online
consultations

Launched Reinsurance business
14,00012,000Transitioned toconsulting plaza
system2,000

Launched MediaRep business
Forecast for FY

10,0003,000

Launched
ASP business

Full-blown pursuit of
online marketing

In the red due to expansion;
Switched focus to quality

Moved to the TSE
Prime Market andlaunched avatar
services

Launched
insurance shops

1,000

09
23

/

8,000

0

6,000

4,000

Listed on the NASDAQ Japan Marketof the Osaka Securities Exchange
Launched Media businessNet sales growth for theseven consecutive termFounded on Oct. 4, 1995
2,000

(1,000)Started leaflet distribution

0(2,000)9/96 '97/9
9/97 9/98
9/00 9/01
9/02 '03/9
9/03 '04/9
9/04 '05/9
9/05 '06/9
9/06 '07/9
9/07 '08/9
9/08 '09/9
9/09 9/10
9/14 '15/9
9/15 '16/9
9/16 '17/9
9/17 '18/9
9/18 9/19'96/9'98/9 9/99
'99/9 '00/9'01/9 '02/9'10/9 9/11
'11/9 9/12
'12/9 9/13
'13/9 '14/9'19/9 9/20
'20/9 9/21
'21/99/22'22/9 9/23
'23/9

13

Advance Create Overview

Advance Create’s Digital Transformation (DX)〇 Spontaneous insurtech born out of customer service〇 Obtained a patent for the system we developed and promoted the protection
and use of intellectual property
Discovery of potential customers
Web marketing

Insurance consultation
Online consultation

Continued relationship with customers“folder” insurance policy management app“GOYOKIKI” CRM system

Avatar Consultant

GOYOKIKI BANTO

Contact with customers
Communication via text

HIKYAKU

Application
Comprehensive paperless application

DECHI

14

Advance Create Overview

Our History of Progress through Technology
1998 Began accepting requests for
information via website
1999 Launched Hoken Ichiba website
Developed CRM system GOYOKIKI
Cf. Amazon founded: 1994
Google founded: 1998
2009 Launched smartphone-optimized website
2012 Complete revamping of smartphone site
Cf. iPhone 3G launched: 20082013 Developed Hoken Ichiba smartphoneapp2018 Developed “folder,” an insurance
policy management app
Cf. MoneyForward ME: 20122020 Began offering online insurance
consultations
Developed Dynamic OMO
Cf. 5G services launched in Japan : 2020
COVID-19 pandemic: 20202022 Started consultation services by avatars
15Advance Create Overview

Our Strengths

Development of insurance
software in-house

Unique methods ofonline marketing● Despite being a specialized
insurance agent, we havemore than 100 IT personnel
and develop software inhouse.
● The system development
team works directly with the
management team andsales force, enabling agile
development of customer
management systems.

● We operate one of thelargest insurance selection
websites in Japan,
Hoken Ichiba.
● We have achieved
substantial cost reductions
through our own marketing
rather than relying on
outside advertising
agencies.

Corporate culture that rapidly
adapts to change● We develop humanresources througheducation and training
systems based on thecorporate culture andfounding spirit.
● We have established asystem to encourage
employees to improve
themselves, including aself-investment support
allowance for nonmanagerial employees.

16Advance Create Overview

In-House Software Development and Agile Development〇 We develop software in-house with more than 100 IT personnel including engineers anddesigners.
〇 We employ agile development through direct connections between management, sales staff,
and engineers.
Marketing Category
11 staff; 1.8％

Management
Category
58 staff
9.4％

Marketing Planningand Other HQ
33 staff; 5.3％

Consulting
Plazas
134 staff

IT Systems
21.6％
Operation Division
IT Infrastructure
Operation Division
Insurtech Promotion
Office115 staff
18.5％
Sales Division No. 3

Contract Management Division
269 staff
43.4％

Changes in No. of IT Personnel(No. of people)
120

100

80

60

40

20

0
Sep 2018
2018年9月

Total:

620 staff* As of September 30, 2022; Excludes external directors and advisors, etc.

Sep
2019
2019年9月

Sep 2020
2020年9月

Sep 2021
2021年9月

2022年9月
Sep 202217

Advance Create Overview

Growth of the Younger Generation to Support
High Productivity and High Added Value〇 We have achieved high productivity through online insurance consultations and the use of
text communication in addition to employee training to foster IT literacy.
〇 We have created an environment in which young employees can participate actively by
establishing an insurance sales management system that makes full use of technology.
Ordinary Profit per Employee(¥10,000)
700

Employee Age Distribution at
Our Consulting Plazas

Source: Advance Create based on EDINET data

*As of September 30, 2022

40s or
above
11.9％

600

500

400

30s
28.8％

300

20s
59.3％

200

100

0

AdvanceCreateアドバンスクリエイト

Averageof all industries
全業種平均

全業種中央値Medianof all industries

18Advance Create Overview

Productivity Improvement〇 We are improving productivity by implementing IT and promoting digital transformation (DX). We
aim to add value for our customers through a business model that is information-intensive, rather
than labor-intensive.
〇 We have increased the average wage per employee by improving productivity. We aim to further
increase productivity through synergies between the company's investment in human resourcesand employees’ self-investment.
Changes in Ordinary Profit per Employee

Changes in Average Annual Salary per Employee(¥10,000)(¥10,000)

700

700

600

650

500
600
400
550
300
500
200
100

450

0

400

19

III. Company Strategy

20Company Strategy: Business Environment Analysis

Industry Size and Outlook
Size of insurance-related market (estimate)
Approx.

¥47.7 trillion

Life insurance: ¥39 trillion + Non-life insurance: ¥8.7 trillion*The Life Insurance Association of Japan, "Life Insurance Trends (2021)"
The General Insurance Association of Japan, “Fact Book 2021"
Japan Cooperative Insurance Association Incorporated, "Cooperative
Insurance in Japan Fact Book 2021"

Unparalleled market size andgrowth potential

Of which, retail market size (estimate)
Approx.

¥20 trillion

No. of households based on the Basic Resident Registration: 59.76 million
x (Insurance coverage rate: 89.8%)
x (Average annual premium: ¥371,000)*Japan Institute of Life Insurance, “National Survey on Life Insurance (2021)"

Insurance agency market size (estimate)
Approx.

¥3 trillion(Percentage of enrollment through insurance agents: 15.3%)*Japan Institute of Life Insurance, "National Survey on Life Insurance (2021)”

The Company’s grosswritten premiums
Approx.

¥40 billion

21

Company Strategy: Evolution to a High-Profit Structure

Efficient Web Marketing〇 We effectively approach prospective customers with apparent insurance product demandthrough our unique web marketing strategy. As a result, our business has evolved into ahigh-profit structure with a greatly improved cost ratio.
Changes in Gross Profit Margin
80.0%

Gross profit margin has increased as a resultof our effective marketing strategy, which
78.0%
has cut cost of sales by 25% or more
76.0%

74.0%

72.0%

70.0%

68.0%

66.0%
9/20192019年9月期

9/20202020年9月期

9/20212021年9月期

9/2022
2022年9月期

22Company Strategy: Evolution to a High-Profit Structure

Strengthening Non-Life Insurance Business toDiversify Revenue Sources〇 The number of applications received and gross written premiums have both increased
consistently since we stepped up our non-life insurance efforts. Non-life insurance, as analternative source of revenue to life insurance, has solidly supported our businessperformance.
〇 We also propose life insurance to our non-life policyholders, and these efforts have helped
to grow our Insurance Agency business overall.
No. of New Applications for Auto Insurance
Risk
リスク細分型
segmentation(Number)
1,800

Annualized New Premiums for Automobile Insurance

Existing
従来型

Risk
リスク細分型(Thousands of yen)

Existing
従来型

segmentation

90,0001,600

80,0001,400

70,0001,200

60,0001,000

50,000800

40,000600

30,000400

20,000200

10,000
0

0
8

9

10

2021

11

12

1

2

3

4

5

6

2022

7

8

9

10

8

9

10
2021

11

12

1

2

3

4

5

6

7

8

9

2022
*The latest results are preliminary.

1023

Company Strategy: Evolution to a High-Profit Structure

Strengthening Our Appointment Generation System〇 Besides the traditional telephone, our call center also makes use of other forms of modern
electronic communication. With the use of LINE, SMS, “folder,” avatars, and various formsof marketing automation, we are able to reach out to customers in a way that is specific totheir interests and preferences, thereby boosting efficiency and making our appointment
generation system more robust.

Could you visitme, please?
Do you have a preferred datefor us to visit you?
November 14.
I would like to review mycurrent policy and consider
enrolling in a new medical
insurance plan.

AI

Can you show us a copy ofyour existing contract?
Yes, I will have my insurance
policy ready.
We can diagnose the policy
contents in advance if you
store your insurance policy inthe folder app.
Understood. I'll store it rightafter this.

Thank you very much. We
will visit you on November 14.
We hope to see you then.

Thank you.

24Company Strategy: OMO 2.0

New-Era OMO 2.0: Avatar Consultants〇 We have partnered with AVITA, Inc., a startup founded by Professor Hiroshi Ishiguro of Osaka
University, to use avatars to respond to insurance inquiries. Professor Ishiguro has been
studying and developing "avatars that interact with people" for over 20 years.
〇 Because there is less of a psychological barrier when dealing with an avatar than with a real
person, the use of avatars has resulted in a dramatic increase in the number of inquiries leading
to appointments for insurance consultation. Since using avatars in conjunction with folder andDynamic OMO can increase the conversation rate with customers, we plan to seek a patent forthe business model and sell the system to other businesses considering the use of avatars.
Acquisition Rate of Insurance Consultation
Appointments from Inquiries
50%
40%
30%
20%
10%
0%
Phone
電話

Avatarアバター*Appointment rate from inquiries since we launched our avatar consultation service in July 2022

25

Company Strategy: OMO 2.0

Dynamic OMO × folder × Avatar〇 To enhance the convenience and efficiency of online insurance consultation, we developed
Dynamic OMO, an insurance-specific online consultation system. Among the patents we haveobtained are the technologies required for identity verification via online insurance consultation
and backing up recorded data in the event of network errors or device malfunctions. We
continue to update our systems on a daily basis through agile development.
〇 We have also developed an app called "folder" for digitizing insurance policies and managing
them in the cloud. Our goal is to make this app the insurance industry’s de facto standard for
insurance comparison, diagnosis, consultation, and management. In addition, we aim to further
promote digital transformation (DX) throughout the industry by integrating this app with Dynamic
OMO and other tools.

* Dynamic OMO and folder are registered trademarks of Advance Create.

26Company Strategy: OMO 2.0

Booking of a Consultant of Choice x Avatar〇 Many customers may feel uneasy at their first insurance consultations because they don’tknow what to expect from their consultant. With our online insurance consultation, customers
can set up an appointment with a consultant of their choosing. We propose an approach tobuying insurance in which consumers “choose a consultant first before choosing insurance,"and our goal is to create a consultation booking platform for the insurance industry. Over 250
consultants, including avatars and cooperating agents, are listed on our platform.
〇 The customer can choose a consultant based on the consultant's profile, reviews, andintroduction video. As a result, we are able to remove the psychological barrier that
customers face and achieve high productivity in online insurance consultations.
Productivity per Appointment* As of September 30, 2022
* Calculated with face-to-faceconsultations indexed to 100☞ Click or scan here to see theconsultant booking page

Face-to-faceConsultations
実面談

Appoint consultant
コンサルタント指名

Onlineconsultation 27
オンライン面談

Company Strategy: OMO 2.0

Pursuing High-Quality Services at Our Physical Locations〇 We operate Hoken Ichiba consulting plazas at urban landmarks. We are committed toproviding high-quality consulting services at these physical locations so that our customers
can have the “impressive experience that only face-to-face interactions can provide.”〇 In November 2021, we opened Smart Consulting Plaza, the industry's first sales office
dedicated to online insurance consultation. Customers who live outside of the service area of
our real Consulting Plazas can take advantage of Smart Consulting Plaza’s high-quality
online insurance consultation service at their convenience. By enhancing the experiencevalue for customers both online and offline, we are creating a new insurance distribution
market.

28

Company Strategy: Portfolio Strategy (1)Portfolio Strategy: Portfolio of Channels

Face-to-face

Mail order
Avatar Consultant

OnlineCollaborative

29

Company Strategy: Portfolio Strategy (2)Portfolio Strategy: Revenue Portfolio

30Company Strategy: Portfolio Strategy (3)Portfolio Strategy: Revenue Portfolio
Insurance Agency Business▶ Sell insurance products on behalf of life insurance and non-life insurance companies after concluding agency contracts▶ Implement promotions centered on Hoken Ichiba, one of the largest insurance selection websites in Japan, to attract customers
with apparent demand for insurance▶ Earn agency commissions from insurance companies by providing consulting to customers and having them to apply for insurance▶ Promotion costs (cost of sales) are incurred immediately, while agency commissions (revenue) are paid over a period of several
years, so the PV (discounted present value of future cash flows from agency commissions) recorded as sales is securitized tocover the balance

Customers

Cost

Insurers

Advance Create

Online promotions

Agency contract

Requests information,
quotes, consultations

Serves as agent
and mediates
insurance contracts

Insurer A

Insurer B

Consulting
Revenue

Applies for insurance

Convertto
PV

Agency commissions

folderInsurer C

31

Company Strategy: Portfolio Strategy (4)ANP and PV by Sales Channel(Unit: Millions of yen)
FY09/21
26期
Collaborative
協業
Non-face-to-face
非対面販売

Face-to-face
対面販売
1,699

1,780

1,577

2,640

2,652

2,518

3,065

2,944

23期
FY09/18

ANP

4,272

PV

24期
FY09/19

ANP

PV

25期
FY09/20

1,699
3,065
3,914
8,679

1.3%
YoY

3,914

3,718

PV

7,812

7,530

7,483

4,706

4,634

Up

8,192

7,757

ANP

Total
合○○計

1,546

1,183

1,780
2,518
4,272
8,571

FY09/22
27期

ANP

PV

26期
FY09/21ANP* ANP: annualized new premiums (ANP for a monthly premiumof ¥5,000 is ¥60,000)* PV refers to the discounted present value of future cash flows
from insurance agency commissions. The Company
recognizes PV as sales.
* Figures for the most recent quarter reflect preliminary data.
PV

27期
FY09/2232

'20/10
10/20'20/11
11/20'20/12
12/20'21/01
01/21'21/02
02/21'21/0303/21'21/0404/21'21/0505/21'21/0606/21'21/0707/21'21/0808/21'21/0909/21'21/1010/21'21/11
11/21'21/12
12/21
01/22'22/01
02/22'22/0203/22'22/0304/22'22/0405/22'22/0506/22'22/0607/22'22/0708/22'22/0809/22'22/090

100,000
(No.)

8,000

50,000

0

0
New
新規

2,000

08/22
'22/0809/22'22/094,000'22/0808/22'22/09
09/22

6,000

06/22
'22/0607/22'22/07

Renewal
更改'22/0606/22'22/0707/22

Number of New and Renewed Policies

04/22'22/0405/22'22/05

Travel旅行'22/0404/22'22/0505/22

02/22'22/0203/22'22/03

12/21'21/1201/22'22/01

10/21'21/10
11/21'21/11

08/21'21/0809/21'21/0907/21'21/0705/21'21/0504/21'21/0403/21'21/0302/21'21/0201/21'21/01

12/20'20/12Pet
ペット'22/0202/22'22/03
03/22

8,000

6,000

150,000

4,000

2,000

自転車
Bicycle'21/12
12/21'22/0101/22

200,000

自動車（バイク含む）
Auto (incl. motorcycles)'21/1010/21'21/11
11/21

(No.)

06/21
'21/06Fire
火災'21/0808/21'21/0909/21

Accident
傷害'21/0606/21'21/0707/21

Travel旅行'21/0404/21'21/05
05/21

Pet
ペット

'21/02
02/21'21/0303/21

Bicycle自転車

11/20'20/11Gross Written Premiums (New and Renewal)'20/12
12/20'21/01
01/21

Auto (incl. motorcycles)
自動車（バイク含む）

10/20'20/10(Thousands of yen)

'20/1010/20'20/11
11/20

Company Strategy: Portfolio Strategy (5)Number of Non-life Insurance Policies and Gross Written Premiums〇 Since we stepped up our efforts in the non-life insurance field in October 2021, we haveseen particularly strong growth in the number of auto insurance policies won and grosswritten premiums, despite fluctuations due to seasonal factors.
*The latest results are preliminary.

Number of Policies by Type of Insurance (New and Renewal)
Accident
傷害
Fire
火災

33

Company Strategy: Portfolio Strategy (6)Number of Policies in Force(Unit: 1,000 policies)

Up
636
519

542

652

579

2.5%
YoY

*The number of policies in force includes life insurance,
medical insurance, and other policies that continue or are
renewed (life insurance companies and American Home
Assurance Co., Ltd.), and excludes non-life insurance andsmall-amount and short-term insurance.

23期
FY09/18

24期
FY09/1925期
FY09/20

26期
FY09/2127期
FY09/2234

Company Strategy: Portfolio Strategy (7)Portfolio Strategy: Revenue Portfolio
Hoken Ichiba Co., Ltd.
Media Representative
Services BusinessMedia Business▶ Receives orders for ad placement on Hoken Ichiba, one of Japan’slargest insurance selection websites▶ Directly approaches customer segments with high interest in insurance▶ Sales tend to be concentrated in March, the end of insurancecompanies’ fiscal year (the end of the first half of the fiscal year for theCompany)Media▶ Entrusted with advertising operations for insurance companies, among
others, leveraging our own advertising operation expertise▶ Certified as a "Yahoo! JAPAN Marketing Solutions 2-Star Sales Partner" andan "Advertising Operation Partner" under the Yahoo! JAPAN Marketing
Solutions Partner Program. (There are approximately 200 sales partners thathave received the star certification, but only 52 of them have been certified as
Advertising Operation Partners.)

メディアレップ売上
Representative(Millions of yen)Media sales
メディア売上*After consolidation adjustments

Services sales

1,400
1,200
1,000
800
600
400
200
0
1H25期上期
FY09/20

2H25期下期
FY09/20

1H26期上期
FY09/212H26期下期
FY09/2127期上期
1H
FY09/2227期下期
2H
FY09/2235

Company Strategy: Portfolio Strategy (8)Portfolio Strategy: Revenue Portfolio
Advance Create Reinsurance Inc.

Reinsurance Business[Insurers under reinsurance agreements]▶ Assumes part of the risk of the insurance sold by the insurer and earns reinsurance
premiums▶ Strengthens relationships with clients by underwriting risk and shouldering insurance
payment obligations▶ Deepens relationships with insurers via risk sharing and sound insurance solicitation▶ Stabilizes revenue by increasing the number of reinsurance agreements with insurers

As of end-Sep. 2022: Total 11Life insurers: 8
Non-life insurers: 2
Small-amount and short-term
insurers: 1

Trends in EEV (Present Value of Reinsurance Revenue)(Millions of yen)

European Embedded Value (EEV)

Value of New Business (VNB)

3,600

422
3,081

151

End-June
2021
2021年6月末

End-June
2022
2022年6月末

FY20202020年度FY20212021年度* For more information on EEV and VNB, please refer to “Disclosure of European Embedded Value for Reinsurance Subsidiary at End-June 2022” released November 11, 2022.

36

Company Strategy: Portfolio Strategy (9)Portfolio Strategy: Revenue Portfolio
ASP Business▶ We sell our in-house system, which we have been using for many years and have improved from the user’s perspective,at a low price.
▶ In-house engineers can quickly respond to customers’ requests to improve certain functions.

Advance Create Cloud Platform （ACP）
Customers

Insurers
Independent
agent

HIKYAKU

Send text
message (SMS)

DECHI

Application
information

Insurer A

BANTO

Online insurance
consultation

Customer Management System

Contract
inquiry

Insurer B

Information query
GOYOKIKI

Other
companies’
CRM
softwareContract
protection

Insurer C* Advance Create Cloud Platform, GOYOKIKI, DECHI, HIKYAKU, folder, and Dynamic OMO are registered trademarks of Advance Create.

37Company Strategy: Portfolio Strategy (10)Advance Create Cloud Platform: No. of IDs
GOYOKIKI
御用聞き

DECHI
丁稚

Dynamic OMO(No. of IDs)

10,000

8,000

6,000

4,000

2,000

0

12/18
'18/12

3/19
'19/3

6/19
'19/6

9/19
'19/9

12/19
'19/12

3/20
'20/3

6/20
'20/6

9/20
'20/9

12/20
'20/12

3/21
'21/3

6/21
'21/6

9/21
'21/9

12/21
'21/12

3/22
'22/3

6/22
'22/6

9/22
'22/9

38

IV. Recent Developments

39

Recent Developments

No. of folder App Downloads〇 The number of downloads of the folder app, which serves as the first point of contact withcustomers considering insurance, has been growing steadily. We use this app tocommunicate with customers through push notifications and other means to provide
tailored information to them.
Downloads
ダウンロード数(Number)

Registered policies
証券登録数150,000

Thanks to
our customers,
we have reached

125,000

150,000
downloads

100,000

75,00050,00025,0000'21/1010/21'21/11
11/21'21/12
12/21

'22/1
1/22

'22/2
2/22

'22/3
3/22

'22/4
4/22

'22/5
5/22

'22/6
6/22

'22/7
7/22

'22/8
8/22

'22/9
9/22

'22/1010/22

40

Recent Developments

Increase in the Number of LINE Friends〇 To improve convenience, we accept insurance inquiries and send quotation results
to customers using familiar communication tools. On LINE, we have over 1.1 million
friends, and the number is steadily increasing.
(No. of persons)
1,100,000

1,050,000

1,000,000

950,000

900,000

850,000

800,000'20/1010/20 '20/11
11/20 '20/12
12/20 '21/1
1/21 '21/2
2/21 '21/3
3/21

'21/4
4/21 '21/5
5/21 '21/6
6/21

'21/7
7/21

'21/8
8/21 '21/9
9/21 '21/10
10/21 '21/11
11/21 '21/12
12/21 '22/1
1/22 '22/2
2/22 '22/3
3/22 '22/4
4/22

'22/5
'22/9 10/22'22/10 41
5/22 '22/6
6/22 '22/7
7/22 '22/8
8/22 9/22

Recent Developments

Appointments〇 Despite some fluctuations depending on the spread of COVID-19, approximately 40% of
our customers request online insurance consultations. We have been getting a steadystream of appointments, thanks to the expansion of our call center division and ourcustomers' growing insurance needs.
Face-to-face
実面談(No. of consultations)

Onlineオンライン面談

10,000
9,000
8,000

33.9%

32.6%
7,000

63.8%

40.0%

34.3%

38.4%

30.0%

32.6%

40.6%

52.1%

47.8%
53.2%

39.1%

42.3%

48.9%

44.7%

36.0%

41.2%

41.3%
6,000

33.6%
35.6%

36.7%44.8%
49.4%

39.9%
5,000
4,000
67.4%

3,000
58.7%
2,000

65.7%
60.0%

61.6%

47.9%
36.2%

66.4%
64.4%
59.4%
58.8%
57.7%

64.0%

60.9%
63.3%
60.1%

55.2%
50.6%

70.0%

66.1%
67.4%

55.3%

52.2%
46.8%

51.1%

1,000
0
'20/1010/20 '20/11
11/20 '20/12
12/20 '21/1
1/21 '21/2
2/21 '21/3
3/21

'21/4
4/21

'21/5
'21/6
5/21 6/21

'21/7
7/21

'21/8
8/21

'21/9
'22/3 4/22
'22/4 5/22
'22/5 6/22
'22/6 7/22
'22/7 8/22
'22/8 9/22
'22/9 10/22'22/109/21 '21/10
10/21 '21/11
11/21 '21/12
12/21 '22/1
1/22 '22/2
2/22 3/22

42

Recent Developments

Trend in ANP at Our Consulting Plazas and Collaborating Agents〇 Through the development of our OMO strategy, including online consultations, we haveestablished a robust revenue structure unaffected by COVID-19. Present Value (PV), which
represents sales in the Insurance Agency business, has also remained steady in correlation
with annualized new premiums (ANP).
Face-to-face
実面談
consultations

オンライン面談
Online consultations

PV at
協業 Consultations

collaborating agents(Thousands of yen)
700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

10/20'20/10 11/20'20/11 12/20'20/12 1/21
'21/1 2/21
'21/2 3/21
'21/3 4/21
'21/4 5/21
'21/5

6/21
'21/6 7/21
'21/7 8/21
'21/8 9/21
'21/9 10/21'21/10 11/21'21/11 12/21'21/12 1/22
'22/1

2/22
'22/2 3/22
'22/3

4/22
'22/4 5/22
'22/5 6/22
'22/6 7/22
'22/7 8/22
'22/8 9/22
'22/9 10/22'22/10* PV shown on this page is the same as that announced in the monthly performance summary, includes non-face-to-face and other sales channels, and does not include some business quality commissions.

43

FY09/23 Full-Year Forecast

FY09/23 Full-Year Forecast(Millions of yen)
Consolidated

FY09/19

FY09/20

FY09/21

FY09/22

FY09/23
forecast

YoY Change

Net sales

10,365

10,51011,01911,86016,68040.6%

Operating profit

1,345

1,184

2,041

2,061

3,220

56.2%

Ordinary profit

1,297

1,095

1,925

2,015

3,030

50.4%

Profit

844

700

1,295

1,312

1,970

50.1%

ROE

18.6%

13.7%

21.0%

18.9%

25.5%

Ordinary profit margin

12.5%

10.4%

17.5%

17.0%

18.2%

Payout ratio

61.3%

74.9%

50.3%

54.2%

38.9%

Equity ratio

56.2%

54.4%

56.9%

57.2%

60.9%

[Shareholder returns]■ For FY09/22, we decided to pay an interim dividend of ¥15 per share and a year-end dividend of ¥17.5
per share (including a ¥2.5 commemorative dividend for the 20th anniversary of our listing), for a total
annual dividend of ¥32.5 per share.
■ For FY09/23, we plan to pay a dividend of ¥17.5 per share for both the interim and year-end dividend, fora total annual dividend of ¥35 per share.
■ We have continued to offer the following shareholder benefits since 2014:• Catalog gift "Freesia" (equivalent to ¥2,500)• Hoken Ichiba Club Off service entitlement (access to partner facilities in Japan at a discounted price)44

Shareholder Returns

Annual Dividend per Share
Annualdividend
年間配当（左軸）(left axis)(¥)

Payout ratio
配当性向（右軸）(right axis)

35.0
100%

30.0
80%

25.0

20.0

60%

No dividend due toreporting a loss

50%

15.0
Listed on the NASDAQ
Japan Market of the
Osaka Stock Exchange

40%

10.0
20%

5.0

0.0

0%

'02/9
9/02

'03/9
9/03

'04/9
9/04

'05/9
9/05

'06/9
9/06

'07/9
9/07

'08/9
9/08

'09/9
9/09

'10/9
9/10

'11/9
9/11

'12/9
9/12

'13/9
9/13

'14/9
9/14

'15/9
9/15

'16/9
9/16

'17/9
9/17

'18/9
9/18

'19/9
9/19

'20/9
9/20

'21/9
9/21

'22/9
9/22

*Adjusted to post-split value to account for stock split.

45

Key Performance Indicators

Key Performance Indicators

TargetFY09/22
results

FY09/23
forecast

ROE

20% or more

18.9%

25.5%

Ordinary profit margin

20% or more

17.0%

18.2%

Payout ratio

50% or more

54.2%

38.9%

Equity ratio

80% or more

57.2%

60.9%
46

Sustainability Management

47

Sustainability Management

Sustainability Management〇 As customers become more concerned with protecting their livelihoods, werecognize that it is becoming increasingly important for us to pursue the “logic of how
to buy" and create a new insurance distribution market. To that end, we have decided
to publish our first integrated report in order to better communicate our company toour stakeholders.
〇 We will continue our existing CSR initiatives to fulfill our social responsibilities andenhance information disclosure based on social needs.
Sponsorship of the
New Japan Philharmonic

Providing Endowed Courses at
Kansai University

Co-sponsorship of the
Osaka Marathon“Eruboshi” certification/
Co-sponsorship with NPOs

©Osaka Marathon 2019

* Click on the link below for the full text of the Integrated Report.
・ Integrated Report (for the fiscal year ended September 30, 2021)

48

Sustainability Management

Building and Strengthening the Management Structure〇 Continuously building and strengthening the management structure
Introduced ESOP Trust,which supports employee
stock ownership plans

HR investment

Financial
Strategy

Compliance and Governance

Revisedpersonnel system andimproved salary levels

Promoted remote work

Started conducting
information security
audits by Deloitte Touche
Tohmatsu

Started securitization ofclaims

Implemented equity financefor the first time in 13 years

Listed on the Second
Section of the Tokyo Stock
Exchange (Oct. 2015)

Appointed Outside
Directors

Established a Voluntary
Nominating andCompensation Committee

Listed on the First Section of
the Tokyo Stock Exchange(Jul. 2016)

Established
Governance Committee(composed of outside
attorneys, etc.)

Listed on the Prime
Market of the Tokyo Stock
Exchange (Apr. 2022)

Started issuing self-investment
support allowance foryounger employees

Obtained PrivacyMark
certification

Implemented salary
increases of 10% or
more, mainly foryounger employees

Established an appointment
system of line management
positions

Established in-housechildcare center

Shifted to a system of closing
all branches on Saturdays,
Sundays and Holidays

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Set goals and developed
regulations to encourage male
employees to take parental
leave

2021

2022
49

V. Supplementary Materials

50Supplementary Materials

Company Overview
Trade name

Advance Create Co., Ltd.

Representative Yoshiharu Hamada, President
Location

Nomura Fudosan Midosuji Building, 3-5-7 Kawaramachi,
Chuo-ku, Osaka, Osaka Prefecture

Established

October 1995

Capital¥3,158 million (as of September 30, 2022)

Businesses

Insurance Agency, Media, Media Representative Services,
Reinsurance, ASP, BPO

Number of
Employees

302 (as of September 30, 2022; excluding contract employees,
rehired employees, and temporary employees)

Fiscal Year-End

September

Listing

Prime Market of the Tokyo Stock Exchange andFukuoka Stock Exchange (Code: 8798)
51

Supplementary Materials

Analyst Reportso Please refer to the research reports by these external organizations for details on the
Company’s history, earnings structure, and other information since its establishment.
o These research reports will be updated as necessary based on the announcement offinancial results and press releases.
o In addition to the reports below, Ichiyoshi Research Institute also distributes reports toinstitutional investors in Japan and overseas.

Click here for our research
report by FISCO Ltd.

Click here for our research
report by Shared Research Inc.

52

Supplementary Materials

Disclaimer

The

forward-looking

statements

includedin

thisdocument and any related materials are based on
currently available information, and may change due tomacroeconomic conditions and trends in the industry inwhich the Company operates.
Accordingly, please note that actual results may differ
from the forward-looking statements presented in thesematerials which are subject to risks or uncertainties.

53

Inquiries
Makoto Okita, General Planning Division
TEL: +81-6-6204-1193

Email: acir@advancecreate.co.jp
URL: https://www.advancecreate.co.jp/