NEWS RELEASE
May 12, 2022
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Financial Results for Fiscal 2021 Ended March 31, 2022
Annualized premium of in-force business of 21,511 million yen, up 15.0% year on year
TOKYO, May 12, 2022 - LIFENET INSURANCE COMPANY (TSE Growth 7157, President
Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) discloses financial results for fiscal 2021
ended March 31, 2022.
1．Overview of the financial results for fiscal 2021
(1) Business results
Condition of policies-in-force
Annualized premium*1 of new business in 4Q ended March 31, 2022 was 981 million yen(88.9% of 4Q of fiscal 2020). The number of new business was 24,410 (90.7% of 4Q of fiscal
2020). Annualized premium of new business for fiscal 2021 was 4,089 million yen (97.4% of
fiscal 2020). The number of new business for fiscal 2021 was 100,636 (100.0% of fiscal 2020)
and recorded a historical high.
Annualized premium of policies-in-force as of the end of March 31, 2022 stands at 21,511
million yen (115.0% of March 31, 2021). Sum insured of policies-in-force was 3,351,278 million
yen (111.9% of March 31, 2021). The number of policies-in-force exceeded 500,000 in February
2022 and resulted in a total of 507,428 (115.3% of March 31, 2021). The number ofpolicyholders was 322,231. Lifenet has extended grace period for insurance premium payment
as one of the special measures in the COVID-19 pandemic.Surrender and lapse ratio*2 for fiscal
2021 was 6.6% (6.0% for fiscal 2020) includes the impact of extended policies that wererecorded as lapsed policies.
*1: Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one
year. All payments for Lifenet products are in monthly installments, we calculate annualized premium as multiplying
the monthly premium by 12 months.
*2: The surrender and lapse ratio is the annual equivalent of the monthly number of policies surrendered and/or lapsed
divided by the monthly average number of policies-in-force.

Results of operations
Insurance premiums and other for fiscal 2021 increased to 25,420 million yen (125.3% offiscal 2020) due to an increase in premium income by growth of in-force business, and effectfrom modified co-insurance. Investment income was 665 million yen (153.4% of fiscal 2020).
Other ordinary income was 81 million yen. As a result, ordinary income for fiscal 2021 amounted
to 26,167 million yen (125.9% of fiscal 2020).
Insurance claims and other was 8,668 million yen (143.7% of fiscal 2020) mainly due to anincrease in reinsurance commissions from modified co-insurance. The ratio of insurance
payment amounts to insurance premiums was 20.7% for fiscal 2021, compared with 19.5% forfiscal 2020. Provision for policy reserves and other came to 6,903 million yen (109.4% of fiscal
2020). The ratio of provision for policy reserves to insurance premiums was 34.1% for fiscal
2021, compared with 36.2% for fiscal 2020. Operating expenses amounted to 12,140 million
yen (121.0% of fiscal 2020) mainly due to the investment in our marketing spend including
advertising. The components of operating expenses were 8,262 million yen in marketing
expenses (123.1% of fiscal 2020), 1,278 million yen in customer service expenses (119.3% offiscal 2020), and 2,599 million yen in system and other expenses (115.7% of fiscal 2020). Other
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
ordinary expenses was 1,693 million yen (112.6% of fiscal 2020). Consequently, ordinary
expenses for fiscal 2021 totaled 29,413 million yen (123.2% of fiscal 2020).
As a result, ordinary profit totaled 3,245 million yen loss for fiscal 2021, compared with 3,089
million yen loss for fiscal 2020. Net income was 3,319 million yen loss, compared with 3,114
million yen loss for fiscal 2020.
In addition, fundamental profit, which is an indicator for the profitability of life insurancecompanies, amounted to 3,213 million yen loss, compared with 2,874 million yen loss for fiscal
2020. The components of fundamental profit were 3,348 million yen in mortality margin, 6,648
million yen loss in expense margin and 86 million yen in interest margin.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance onpart of new business to achieve continuous growth. By utilizing reinsurance appropriately, we willease the temporary burden imposed on statutory capital by expenses associated with new
business and maintain fiscal soundness. The reinsurance transactions are agreements thattransfer the risk and the profit (loss) structure of the reinsured business to the reinsurancecompany for a certain period of time. We receive ceding commission in accordance with the new
business costs associated with the reinsured business in the initial fiscal year. This leads to anincrease in ordinary income. On the other hand, after the ceding commission is recorded
reinsurance accounts receivable as asset, it is amortized by the profit generated from thereinsured business over following fiscal years. This leads to a decrease in ordinary profit and net
profit. Once the balance of reinsurance accounts receivable is amortized to zero, the reinsurance
agreement terminates, and subsequent profit on the reinsured business belongs to Lifenet.
Accordingly, the modified co-insurance for fiscal 2021 resulted in raising ordinary income by 4,852
million yen (2,778 million yen of fiscal 2020), ordinary profit by 1,283 million yen (804 million yen of
fiscal 2020), and net income by 1,283 million yen (804 million yen of fiscal 2020).
(2) Financial condition
Assets, liabilities and net assets
Total assets as of March 31, 2022 amounted to 67,820 million yen (54,501 million yen as ofMarch 31, 2021). The major account balance was 47,425 million yen in securities mainly
consisting of government bonds and corporate bonds with high credit ratings. Reinsurance
accounts receivable was 3,881 million yen including 3,657 million yen of the balance of
unamortized ceding commission for modified co-insurance.
Liabilities amounted to 45,749 million yen as of March 31, 2022 (38,694 million yen as ofMarch 31, 2021), owing to an increase in policy reserves. The major account balances were42,558 million yen in policy reserves and 984 million yen in reserves for outstanding claims. In
terms of policy reserves, new business from fiscal 2018 onward has been transferred from 5year Zillmer’s method to standard policy reserves. The difference in policy reserves has been
resolved over five fiscal years, from fiscal 2018 to 2022. From the perspective ofComprehensive Guidelines for Supervision for Insurance Companies, Lifenet accumulated thedifference in policy reserves in fiscal 2021 which was planned to be enhanced in fiscal 2022.
Thus, Lifenet has completed the transition to standard policy reserves in fiscal 2021 ended
March 31, 2022.
Net assets amounted to 22,071 million yen as of March 31, 2022 (15,806 million yen as ofMarch 31, 2021) mainly due to raising new capital through overseas public offering despite therecording of net loss for fiscal 2021. It includes the effect of raising retained earnings due to theutilization of modified co-insurance. On the other hand, after the ceding commission is recorded
reinsurance accounts receivable as asset, it is amortized by the profit generated from thereinsured business over following fiscal years. This leads to a decrease in net assets
accordingly.
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
The solvency margin ratio as of March 31, 2022 was 3,182.8% (2,647.1% as of March 31,2021), which indicated that an adequate level of payment capacity was maintained.
(3) Cash flows
For fiscal 2021, net cash provided by operating activities amounted to 2,783 million yen(2,937 million yen provided for fiscal 2020) mainly because of an increase in insurance
premium. Net cash used by investing activities amounted to 7,749 million yen (10,435 million
yen used for fiscal 2020) mainly due to acquisition of securities. Net cash provided by financing
activities amounted to 9,668 million yen (8,879 million yen provided for fiscal 2020) mainly due
to issuance of new shares through overseas public offering in September 2021.
Based on these activities described above, cash and cash equivalents as of March 31, 2022
totaled 7,761 million yen (3,059 million yen as of March 31, 2021).
(4) Business forecasts
Business forecasts for fiscal 2022 ending March 31, 2023 are as follows. Lifenet discloses
ordinary income, ordinary profit (loss) and net income (loss).
Ordinary profit (loss)(In millions of yen)
Net income (loss)

30,300(3,400)(3,400)26,167(3,245)(3,319)Ordinary income
Business forecasts
for fiscal 2022
(Reference)
Business results
for fiscal 2021
Change

15.8%

-

-

Lifenet aims for further in-force business growth by undertaking initiatives for the “innovationof customer experience” and “enhancement of promotion capabilities” as disclosed as priority
areas in the Management Policy to achieve the management goal. We will proactively invest in
marketing to achieve these objectives. We will also invest in expanding our data analysis
platform and developing other systems for designing products and services from the customer
perspective. This will allow us to respond promptly to changes in the business environment andcustomer behaviors.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance
and continue to utilize the reinsurance in fiscal 2022. We expect the impact of these reinsurance
transactions on fiscal 2022 results forecasts to increase ordinary income by around 6,300
million yen, ordinary profit by around 1,000 million yen and net income by around 1,000 million
yen, given that new business will be acquired as expected. This impact includes the effects ofamortization of reinsurance accounts receivable generated from reinsured business in past
years.
Accordingly, Lifenet is forecasting ordinary income of 30,300 million yen, ordinary profit of
3,400 million yen loss and net profit of 3,400 million yen loss for fiscal 2022, including theimpact of modified co-insurance. As the table below indicates, we project annualized premiumof policies-in-force of 24,400 million yen and annualized premium of new business of 4,400
million yen.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE(Reference) Annualized premium
Policies-in-force
Business forecasts
for fiscal 2022
Business results
for fiscal 2021

(In millions of yen)
New business

24,4004,400

21,511

4,089(5) Dividend policy
Lifenet has yet to determine its specific dividend policies and dates for the start of distributing
retained earnings as dividends as we still record cumulative loss and will be prioritizing
strengthening our growth base to increase mid to long term profitability.
In the future, we will continue to target business expansion and profit generation byimplementing measures to increase recognition of the Company, developing new products andservices, and effectively utilizing financing for investment in systems and other aspects of thebusiness. In addition to this, the Company will consider implementing measures to provide
shareholder return that include payment of dividends from future retained earnings.
Lifenet's Articles of Incorporation stipulates that a decision on the distribution of retained
earnings as specified in each Item of Paragraph 1, Article 459 of the Companies Act can bemade by a resolution of the Board of Directors, except as otherwise determined by law.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

4NEWS RELEASE
2．Business policy(1) Basic management policy
Lifenet’s management philosophy is helping our customers embrace life more fully by offering
comprehensible, cost-competitive and convenient products and services based on the highest
levels of business integrity. With the internet as our main sales channel, we utilize technology
and strive to be the leading company driving the growth of the online life insurance market
through our customer-centric products and services.
(2) Target indicator
Lifenet regards European Embedded Value (EEV), noted in the management goal set in ourManagement Policy, as the important management indicator of corporate value.
We have also established three types of indicators for growth, profitability, and financial
soundness to supporting sustainable growth of EEV. The indicators for growth are the numberof policies-in-force and new business; the indicators for profitability are the operating expense
ratio (operating expenses excluding marketing expenses divided by insurance premium) andmarketing efficiency of new business; and the indicator for soundness is the solvency margin
ratio.
To accelerate investment in growth based on the business environment and our Management
Policy, we plan to move the timing for turning a profit at the ordinary profit level on a statutory
accounting basis back from the mid-2020s. Lifenet is aiming for the voluntary adoption ofInternational Financial Reporting Standards (IFRS) in fiscal 2023 and we expect to record a
profit in the initial year of adoption under IFRS, though it is not certain at this time.
(3) Mid to long term business strategy and challenges
We formulated our Management Policy in November 2018 and have achieved vigorous
growth. We upgraded the management goal to achieving 200 billion yen in EEV over the
medium term in May 2021 because we were nearing the initial management goal of achieving
100 billion yen in EEV over the medium term. We will strive to achieve even greater growth andhigh profitability over the medium and long term based on the policy.
Summary of Management Policy
MissionHelp our customers embrace life more fully by offering comprehensible,
cost-competitive and convenient products and services

VisionBe the leading company driving the growth of the online life insurance
market⚫

Innovation of customer experience
Enhancing and evolving the quality of all services with digital

Priority areas

technology⚫

Enhancement of promotion capabilities
Generating massive customer traffic by active promotion andexpansion of agent sales and white label business

Management
goal

Aim to achieve EEV (indicator of corporate value) of 200 billion yen bybusiness growth in a mid-term

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

5NEWS RELEASE
In fiscal 2021, Lifenet has been steadily growing. We achieved 100 billion yen in EEV as of
September 30, 2021 and the number of policies-in-force reached 500,000 in February 2022.
These goals were achieved through initiatives in the priority areas of “innovation of customer
experience” and “enhancement of promotion capabilities” based on the Management Policy. Our
subsidiary, LIFENET MIRAI Inc., was established and launched as an online insurance agency
business from July 2021. This is part of the initiatives to build an online insurance platform tobecome an Internet service company of life insurance.
Since we have commenced our business in 2008, new entrants into the online channel bycompetitors are increasing due to changes in the business environment, and the online life
insurance market is becoming competitive. In this situation, Lifenet will continue to invest in
growth in fiscal 2022 to maintain our presence as the leading online insurance company driving
the market. We will engage in active investment utilizing the capital we obtained throughoverseas public offerings in fiscal 2020 and fiscal 2021, in order to achieve even greater growth
and accelerate transformation into an Internet service company of life insurance. We will also
pursue initiatives that address the following issues with the aim of achieving 200 billion yen in
EEV.
ⅰ Sustained Growth in In-force Business Performance
We aim to achieve double-digit growth in in-force business performance through initiatives in
the priority areas of “innovation of customer experience” and “enhancement of promotion
capabilities”.
To achieve “innovation of customer experience”, we will capitalize on the business
opportunities presented by the increasing need for customers of all ages to purchase insurance
online and will expand in-force business by accommodating those diverse needs. We will also
improve the convenience of the various customer processes by focusing on application process
and other website improvements and data analysis. We will particularly focus on providing a
stress-free experience from the initial visit to the website to application.
To achieve “enhancement of promotion capabilities”, we will provide Lifenet product value
through both the Internet channel and white label channel and aim for further growth. In theInternet channel, we will increase our brand recognition through active advertising. We also
diversify promotions to attract more customers in their 30s and other young customers, our main
customer segment since our business commencement. In the white label channel, we continue
to position it as a channel with med to long term growth potential and will strengthen initiatives
with the current corporate partners including KDDI CORPORATION (KDDI) and Money
Forward, Inc (Money Forward). With KDDI, both KDDI and Lifenet are pursuing initiatives thatutilize KDDI Group assets. With Money Forward, we will focus on improving the application rateand creating a convenient customer experience on website. We will provide our product value
with customers while utilizing the high brand value and broad customer bases of partnercompanies.
ⅱ Transformation into a Internet Service Company of Life Insurance
Lifenet aims to be the leading company driving growth of the online insurance market and isaccelerating efforts to transform into an Internet service company of life insurance. We aim tobuild an online life insurance platform that connects customers with life insurance services byutilizing the expertise we have accumulated as an online life insurer since our business
commencement.
As a part of that, the subsidiary we established in fiscal 2021 has begun operating an online
insurance agency business and is providing Lifenet’s and other products suitable for online
Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
sales. In the future, we will expand to products other than life insurance while making a series ofimprovements to the website. Through the subsidiary, we aim to be a platform capable ofproviding solutions to issues related with life insurance from the customer’s perspective.
In addition, we will also strengthen the organizational structure to successfully transform into
an Internet service company of life insurance. Lifenet will step up hiring activities and focus
most intently on securing talent mainly in the systems area to achieve “innovation of customer
experience”. We will evolve evaluation system that supports employee’s growth and challenges.
We also work on creating a good workplace environment for both working in the office andworking from home which we introduced after the COVID-19. Thus, we will also strive toachieve the management goal by establishing human resource systems to improve productivity
and efficiency.
3. Basic Rationale for Selection of Accounting Standards
Lifenet is evaluating International Financial Reporting Standards (IFRS), assuming that wewill adopt IFRS in the future. Regarding the new accounting standards for insurance contracts(IFRS 17) which the International Accounting Standards Board (IASB) published, taking into
account the potential effect on the method of creating financial statements, we are continuously
conducting its study.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE
4. Non-consolidated Financial Statements(1) Balance Sheets(In millions of yen)March 31
2021

2022

Cash and deposits ·································································

2,059

3,761

Bank deposits ································································

2,059

3,761

Monetary claims bought ··························································

999

3,999

Money held in trust ································································

5,895

5,460

Securities ············································································

40,00747,425Government bonds ·························································

9,004

8,946

Municipal bonds ·····························································

1,482

1,469

Corporate bonds ····························································

21,301

24,042

Stocks ·········································································

397

492

Foreign securities ···························································

098

Other securities ·····························································

7,821

12,375

Tangible fixed assets ·····························································

95

97

Buildings ······································································

12

25

Leased assets ·······························································

11

7

Other tangible fixed assets ···············································

71

64

Intangible fixed assets ····························································

1,252

1,293

Software·······································································

520

1,123

Software in progress ·······················································

732

170

Agency accounts receivable ····················································

9

7

Reinsurance accounts receivable ··············································

2,569

3,881

Other assets·········································································

1,612

1,892

Accounts receivable ························································

1,362

1,585

Prepaid expenses ··························································

103

131

Accrued income ·····························································

71

101

Deposits ·······································································

73

73

Suspense payments ·······················································

1

1

Total assets ···························································

54,501

67,820ASSETS

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE(In millions of yen)March 31
2021

2022

Policy reserves and other ························································

36,63943,542

Reserves for outstanding claims ········································

837

984

Policy reserves ······························································

35,801

42,558Agency accounts payable ·······················································

69

48

Reinsurance accounts payable ·················································

301

404

Other liabilities ······································································

1,234

1,379

Income taxes payable ·····················································

3

3

Accounts payable ···························································

71

30

Accrued expenses ··························································

1,082

1,270

Deposits received ···························································

15

16

Lease liabilities ······························································

11

7

Asset retirement obligations··············································

33

34

Suspense receipt ···························································

16

17

Reserves under the special laws ···············································

76

102

Reserve for price fluctuations ············································

76

102

Deferred tax liabilities ·····························································

373

271

Total liabilities ························································

38,69445,749

Capital stock ········································································

16,731

21,655

Capital surplus ······································································

16,731

21,655

Legal capital surplus ·······················································

16,731

21,655Retained earnings ·································································(18,616)(21,936)

Other retained earnings ···················································(18,616)(21,936)

Retained earnings brought forward ·····························(18,616)(21,936)

Treasury shares ····································································

(0)

(0)

Shareholders’ equity ·········································

14,846

21,373

Valuation difference on available-for-sale securities ······················

960

697

Valuation and translation adjustments ········································

960

697

Total net assets ···············································

15,80622,071

Total liabilities and net assets ·····························

54,501

67,820

LIABILITIESNET ASSETS

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

9

NEWS RELEASE(2) Statements of Operations

Ordinary income ························································
Insurance premiums and other ······························
Premiums income ·······································
Reinsurance income ····································
Investment income ·············································
Interest, dividends and other income ···············
Interest from deposits ···························
Interest and dividends from securities ·······
Other interest and dividends ···················
Gain on money held in trust ···························
Gain on sales of securities ····························
Other ordinary income ·········································
Other ························································
Ordinary expenses ····················································
Insurance claims and other···································
Insurance claims ·········································
Benefits ····················································
Other refunds ·············································
Reinsurance commissions ····························
Provision for policy reserves and other ····················
Provision for reserves for outstanding claims ·····
Provision for policy reserves ··························
Investment expenses ··········································
Interest expenses ········································
Foreign exchange losses ······························
Other investment expenses ···························
Operating expenses ············································
Other ordinary expenses ······································
Taxes ·······················································
Depreciation ··············································
Other ························································
Ordinary profit (loss) ··················································
Extraordinary losses ··················································
Loss on disposal of non-current assets ···················
Provision of reserves under the special laws ············
Provision of reserve for price fluctuations ·········
Income (loss) before income taxes ································
Income taxes-current ·················································
Income taxes ····························································Net income (loss) ······················································(In millions of yen)
Year ended March 31
2021
2022
20,78926,167
20,282
25,42016,892
19,835
3,389
5,585
433
665
320
415
0
0
320
415
0
0
110
70
2
178
73
81
73
81
23,87929,413
6,031
8,668
2,146
2,546
1,140
1,563
0
1
2,743
4,558
6,310
6,903
199
146
6,111
6,756
2
8
0
0
0
0
2
7
10,03012,140
1,503
1,693
998
1,169
364
390
140
133
(3,089)(3,245)
20
68
－
42
20
26
20
26
(3,109)(3,314)4
4
4
4(3,114)(3,319)Copyright© LIFENET INSURANCE COMPANY All rights reserved.

10

NEWS RELEASE(3)

Statements of Changes in Net Assets(In millions of yen)
Year ended March 31
2021
2022

Shareholders' equity:
Capital stock
Balance at the beginning of the year ·························
Changes of items during the period
Issuance of new shares ···································
Issuance of new shares-restricted stock ··············
Issuance of new shares-exercise of subscription rights to shares ·····
Total changes of items during the period ·············
Balance at the end of the period ·······························
Capital surplus
Legal capital surplus
Legal capital surplus ·······································
Changes of items during the period
Issuance of new shares ·······························
Issuance of new shares-restricted stock ··········
Issuance of new shares-exercise of subscription rights to shares ·Total changes of items during the period ·········
Legal capital surplus ··············································
Total capital surplus
Capital surplus ···············································
Changes of items during the period
Issuance of new shares ·······························
Issuance of new shares-restricted stock ··········
Issuance of new shares-exercise of subscription rights to shares ·Total changes of items during the period ·········
Capital surplus ···············································
Retained earnings
Other retained earnings
Retained earnings brought forward
Retained earnings brought forward·················
Total changes of items during the period
Net income (loss) ···································
Total changes of items during the period ·····
Retained earnings brought forward·················
Total retained earnings
Retained earnings ········································
Changes of items during the period
Net income (loss) ·····································
Total changes of items during the period ·······
Retained earnings ·······································
Treasury shares
Balance at the beginning of the year ·························
Changes of items during the period
Purchase of treasury shares ·····························
Total changes of items during the period ·············
Balance at the end of the period ·······························

12,20016,731

4,502
20
8
4,531
16,731

4,885
21
15
4,923
21,655

12,20016,731

4,502
20
8
4,531
16,731

4,885
21
15
4,923
21,655

12,20016,731

4,502
20
8
4,531
16,731

4,885
21
15
4,923
21,655(15,502)(18,616)(3,114)(3,114)(18,616)(3,319)(3,319)(21,936)(15,502)(18,616)(3,114)(3,114)(18,616)(3,319)(3,319)(21,936)

－

(0)

(0)
(0)
(0)

(0)
(0)
(0)

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

11

NEWS RELEASE(In millions of yen)
Year ended March 31
2021
2022
Total shareholders' equity
Balance at the beginning of the year ··························
Changes of items during the period
Issuance of new shares ···································
Issuance of new shares-restricted stock ··············
Issuance of new shares-exercise of subscription rights to shares ·····Net income (loss) ···········································
Purchase of treasury shares ·····························
Total changes of items during the period ·············
Balance at the end of the period ·······························

8,898

14,8469,005
41
16(3,114)(0)
5,948
14,8469,771
43
31(3,319)(0)
6,526
21,373

502

960

457
457
960

(262)
(262)
697

502

960

457
457
960

(262)
(262)
697

9,400

15,8069,005
41
16(3,114)
(0)
457
6,406
15,8069,771
43
31(3,319)
(0)
(262)
6,264
22,071

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Balance at the beginning of the year ··························
Changes of items during the period
Net changes of items other than shareholders' equity ····

Total changes of items during the period ·············
Balance at the end of the period ·······························
Total valuation and translation adjustments
Balance at the beginning of the year ··························
Changes of items during the period
Net changes of items other than shareholders' equity ····

Total changes of items during the period ·············
Balance at the end of the period ·······························Net assets:
Balance at the beginning of the year ··························
Changes of items during the period
Issuance of new shares ··································
Issuance of new shares-restricted stock ·············
Issuance of new shares-exercise of subscription rights to shares ····Net income (loss) ··········································
Purchase of treasury shares ····························Net changes of items other than shareholders' equity ···Total changes of items during the period ············
Balance at the end of the period ································

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

12

NEWS RELEASE(4) Statements of Cash Flows(In millions of yen)
Year ended March 31
2021

2022

Cash flows from operating activities
Income (loss) before income taxes ·····································(3,109)(3,314)

Depreciation and amortization ···········································

364

390

Increase (decrease) in reserves for outstanding claims ···········

199

146

Increase (decrease) in policy reserves ·································

6,111

6,756

Increase (decrease) in reserve for price fluctuations ···············

20

26

Interest, dividends and other income ···································

(320)

(415)

Loss (gain) related to securities ··········································

(2)

(178)

Interest expenses ···························································

0

1

Loss (gain) property plant and equipment ·····························－

5

Share issuance costs ·······················································

137

130

Decrease (increase) in agency accounts receivable ···············

01

Decrease (increase) in reinsurance accounts receivable ··········(906)(1,311)

Decrease (increase) in other assets <excluding assets for investing and financing activities > ·

(235)

(235)

Increase (decrease) in agency accounts payable ························

14

(21)

Increase (decrease) in reinsurance accounts payable ·············

75

103

Increase (decrease) in other liabilities <excluding assets for investing and financing activities> ·

311

189

Other, net ······································································

(69)

9

Subtotal ········································································

2,591

2,283

Interest and dividends income received ·······························
Interest expenses paid ·····················································

350
(0)

520
(1)

Income taxes (paid) refund ················································

(4)

(19)

Net cash provided by (used in) operating activities ············

2,937

2,783

Cash flows from investing activities
Purchase of money held in trust ·········································(1,800)－

Proceeds from decrease in money held in trust ·····················－

500

Purchase of securities ······················································(9,518)(9,809)Proceeds from sales and redemption of securities ······················

1,713

2,076

Total of net cash provided by (used in) investment transactions ···(9,605)(7,232)

Total of net cash provided by (used in) operating activities and investment transactions ···(6,667)(4,448)Purchase of tangible fixed assets ·······································
Purchase of intangible fixed assets ·····································

(39)
(791)

(38)
(478)

Net cash provided by (used in) investing activities ·············(10,435)(7,749)Cash flows from financing activities
Proceeds from issuance of shares ······································

8,868

9,641

Proceeds from issuance of stock resulting from exercise of subscription rights to shares ···16

31

Purchase of treasury shares ··············································

(0)

(0)

Repayments of lease obligations ········································

(4)

(4)

Net cash provided by (used in) financing activities ············

8,879

9,668

Net increase (decrease) in cash and cash equivalents ················

1,381

4,702

Cash and cash equivalents, beginning of the year ······················

1,677

3,059

Cash and cash equivalents, end of the year ······························

3,059

7,761

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

13

NEWS RELEASE
About LIFENETURL: https://ir.lifenet-seimei.co.jp/en/

Remembering the original purpose of life insurance - mutual support - LIFENET INSURANCECOMPANY was founded with the goal of offering simple, convenient and competitively priced
products and services based on the highest levels of business integrity. We sell these products
and services directly to customers over the Internet. We aim to be the leading company driving
the growth of the online life insurance market.
Contact:
Investor Relations, Corporate Planning DepartmentTel:+81-3-5216-7900
e-mail: ir@lifenet-seimei.co.jp
Disclaimer: This is a summarized translation of the original Japanese document, prepared andprovided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese
document prevails.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

14