ＤＤNEWSRELEASE

March 15, 2023
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Notice of Voluntary Adoption ofInternational Financial Reporting Standards (IFRS)TOKYO, March 15, 2023 – LIFENET INSURANCE COMPANY (TSE Growth 7157, President
Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/, hereafter, “the Company”) announces thatthe Board of Directors has decided on the voluntary adoption of International Financial
Reporting Standards (hereafter, “IFRS”) for its consolidated financial statements. This change
will take effect from fiscal 2023 ending March 31, 2024. In line with this, the Company alsoannounces that LIFENET MIRAI Inc. is planned to be a consolidated subsidiary from April 1,2023.

1. Purpose of voluntary adoption of IFRSThe current financial accounting under Japanese GAAP for the insurance industry is basedon the accounting procedures prescribed by the Insurance Business Act. Under the statutory
accounting on the profit-and-loss statement, the entire cost associated with the acquisition of
new business is recognized as a current period expense. On the other hand, the income frominsurance premiums, which represents revenues, is recognized over a long period of time.
Thus, there is a time lag between the recognition timing of revenues and cost.
Accordingly, if new business performance is growing strongly while in-force business has not
yet reached a sufficient volume, like the Company, it will have a negative impact on accounting
profit and loss under Japanese GAAP.
The Company recognized a significant challenge in properly representing our periodic
profit/loss and the reality of our medium-term profitability under Japanese GAAP, which means
the more business performance grows the more the accounting profit decreases.
To address the challenge, the voluntary adoption of IFRS can better reflect the Company’s
actual periodic profit/loss and profitability by, for example, allowing a part of cost acquired new
business to be deferred over the period of the contract. In addition, IFRS will provide acomparable financial information internationally. We believe that it will contribute to disclose
more useful information to shareholders and investors.

2. Disclosure schedule for the voluntary adoption of IFRS (planned)
Accounting period
FY2022

FY2023Disclosure documents

Accountingstandards

Year-end

Financial Results
Financial Statements
Annual Securities ReportJapanese GAAPFirst quarter
Second quarter
Third quarter

Quarterly Financial Results
Quarterly Securities Reports

IFRS*1Year-end

Financial Results
Consolidated Financial Statements
Annual Securities ReportIFRS*1*1. Non-consolidated financial statements under Japanese GAAP are prepared until fiscal 2022, ending March 31,
2023. From fiscal 2023 onwards, non-consolidated financial statements will continue to be prepared underJapanese GAAP.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS
RELEASE3. Profile of the consolidated subsidiary（1）Company name

LIFENET MIRAI Inc.

（2）

Location

2-14-2 Kojimachi, Kojimachi NK Building, Chiyoda-Ku,
Tokyo

（3）

Representative

Takahito Kanasugi, President and Representative Director（4）

Business description

Insurance agency services, etc.

（5）

Capital

350 million yen (including capital reserve)（6）

Date establishedMay 10, 2021

（7）

Major shareholder &percentage of shares held

LIFENET INSURANCE COMPANY 88.6%
MILIZE Inc. 11.4%

（8）

（9）

Relationship with Lifenet

Capitalrelationship

Subsidiary of Lifenet

Personnel
relationshipA director of the Company concurrentlyserves as a director. A director (Audit andSupervisory Committee member) of theCompany also concurrently serves as acorporate auditor.

Transactional
relationship

There is a transaction for agency
commissions related to the sale ofinsurance as an insurance company andits agent.

Financial results of LIFENET MIRAI Inc.
Fiscal year ended
March 31, 2020

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net assets (million yen)－－116

Total assets (million yen)－－121

Net assets per share (yen)

－－

5,802

Ordinary income (million yen)－－0

Ordinary profit (million yen)－－(83)Net income (million yen)－－(83)Net income per share (yen)－－(4,197)

Financial term

4. Future Prospects
The impact on operating results of the inclusion of LIFENET MIRAI Inc. as a consolidated
subsidiary will be minor. The Company will promptly disclose any material impact that arises inthe future.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWSRELEASE
About Lifenet
URL： 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 and provided
solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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