Corporate Data

Selected Financial Data
T&D HOLDINGS¥ millions

Years ended March 31

2016

2017

2018

2019

2020

Statement of Operation Data:
Ordinary revenues:¥1,574,506¥1,505,234¥1,483,719¥1,676,184¥1,753,508

Investment income

379,707402,709372,753

393,901

369,419

Other ordinary income

71,66567,83871,81370,07675,001

2,025,925

1,975,784

1,928,359

2,140,162

2,197,928

Insurance claims and other payments

1,302,899

1,160,357

1,146,175

1,141,636

1,193,510

Provision for policy and other reserves

194,387

259,134

262,894

469,615

431,011

Investment expenses

77,477130,277

96,288112,285

164,819

Operating expenses

198,999

197,600

202,366

201,563

212,453

Other ordinary expenses

80,727

71,18664,15968,08670,424

1,854,490

1,818,556

1,771,884

1,993,213

2,072,506

Ordinary profit

171,434

157,227

156,475

146,949

125,422Net extraordinary gains (losses)(29,274)(35,067)(16,485)(17,890)(6,055)

Provision for reserve for policyholder dividends

31,92025,37430,331

27,144

21,883

Income before income taxes

110,239

96,786109,657

101,915

97,48331,768

Income from insurance premiums

Total ordinary revenues
Ordinary expenses:

Total ordinary expenses

Income taxes:
Current

46,07533,316

34,10632,383

Deferred(8,561)(11,895)(2,044)(3,316)(1,425)37,513

21,421

32,061

29,06630,343

Total income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent

179¥

72,547

177¥

75,187

19¥

77,57736

22¥72,825¥

67,103¥ millions

2016

2017

2018

2019

2020

¥14,674,207¥14,891,167¥15,262,398¥15,794,711¥16,520,137

12,892,482

13,139,218

13,395,725

13,859,097

14,282,219

13,460,145

13,794,395

14,109,362

14,635,123

15,396,987

Total shareholders’ equity

775,208

794,554

833,779

863,933

889,817

Total accumulated other comprehensive income

435,331

298,302313,645

289,181

226,124¥ 1,214,061¥ 1,096,772¥ 1,153,036¥ 1,159,588¥ 1,123,149

2016

2017

2018

2019

2020

Policy amount in force¥62,998,174¥64,612,813¥66,010,749¥69,264,639¥67,362,978

New policy amount

6,685,973

7,441,437

7,273,000

9,985,762

4,711,892

Surrender and lapse amount

3,789,522

3,837,734

3,884,453

4,625,021

4,206,148

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:

Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:* The total of individual insurance, individual annuities and Daido Life’s J-type product, T-type product, Kaigo Relief Alpha, etc. The new policy amounts include net increases from conversions.

Other Data:
Core profit¥ 153,097¥ 159,985¥ 148,466¥ 149,638¥ 166,227

Group MCEV *1,893,700

2,290,500

2,406,700

2,370,600

2,588,100

Consolidated solvency margin ratio

1,155.8%

1,105.1%

1,061.8%

1,093.1%

1,107.0%* Group MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

90

T&D Holdings INTEGRATED REPORT 2020

TAIYO LIFE
¥ millions

2016

2017

2018

2019

2020

Income from insurance premiums¥657,185¥654,379¥511,900¥715,120¥593,679

Investment income

202,909

228,058

189,495

190,444

196,911

Other ordinary income

13,792

15,51737,31912,044

11,947

873,887

897,955

738,716

917,610

802,538

Insurance claims and other payments

604,261535,387

522,746

521,457

542,912

Provision for policy and other reserves

39,86099,991

885

183,693

43,421

Investment expenses

36,54083,10945,292

52,38676,173Operating expenses

76,424

77,18976,69876,73075,077

Other ordinary expenses

37,67635,63530,301

29,14728,171

794,763

831,312675,925

863,413765,756
36,782Years ended March 31

Statement of Operation Data:
Ordinary revenues:

Total ordinary revenues
Ordinary expenses:

Total ordinary expenses
Ordinary profit

79,124

66,642

62,79054,196Net extraordinary gains (losses)(20,251)(18,995)(4,254)(5,370)(1,594)

Provision for reserve for policyholder dividends

18,135

11,73815,664

13,138

10,197

Income before income taxes

40,73635,90942,87035,687

24,990Current

17,624

11,120

10,238

10,798

10,391

Deferred(3,722)(4,178)

2,151

(657)

(1,218)13,902

6,941

12,39010,1409,172¥ 26,834¥ 28,967¥ 30,480¥ 25,547¥ 15,817

2016

2017

2018

2019

2020

¥7,084,800¥7,188,371¥7,219,463¥7,411,864¥7,660,474

6,318,824

6,410,781

6,389,235

6,569,075

6,608,629

6,603,082

6,807,381

6,810,776

6,996,551

7,269,351

Total shareholders’ equity

279,336

279,765

290,945304,203

303,647

Total valuation and translation adjustment

202,382

101,224

117,742

111,10987,476¥ 481,718¥ 380,989¥ 408,687¥ 415,312¥ 391,123

2016

2017

2018

2019

2020

Policy amount in force¥21,983,504¥21,741,191¥21,154,486¥19,945,620¥18,023,246

New policy amount

2,134,199

2,084,818

1,686,796

1,196,690

540,573

Surrender and lapse amount

1,255,956

1,255,824

1,236,078

1,240,097

1,149,490

5.67%

5.71%

5.69%

5.86%

5.76%

Income taxes:

Total income taxes
Net income¥ millions

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:

Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:Surrender and lapse rate

* The total of individual insurance and individual annuities. The new policy amounts include net increases from conversions.

Other Data:
Core profit¥ 53,812¥ 53,464¥ 48,547¥ 51,859¥ 54,387

MCEV *

725,700

777,500

825,000

856,200

895,800

Solvency margin ratio

890.6%

848.6%

835.1%

849.7%

805.5%

8,631

8,902

8,942

8,440

8,071

Number of in-house sales representatives* MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

T&D Holdings INTEGRATED REPORT 202091Corporate Data

Selected Financial Data
DAIDO LIFE
¥ millions

2016

2017

2018

2019

2020

¥748,914
165,153
21,671
935,739¥766,336
154,066
24,029944,431¥790,852
171,830
25,387
988,070¥ 828,003
191,065
26,492
1,045,561¥ 818,070
165,137
31,916
1,015,124

502,896
181,357
34,443
102,531
24,203
845,431
90,307
4,413
13,78880,932484,881
204,770
48,244
103,099
20,739861,736
82,695(12,450)
13,63656,608496,329
232,739
46,233
103,602
19,767
898,672
89,397(11,698)
14,66863,031

510,573
259,032
61,342
103,883
21,458956,290
89,270(11,956)
14,00563,308522,146
214,775
61,569107,649
22,826928,967
86,157(3,703)
11,68770,76629,351(2,896)
26,455¥ 54,476

20,777(7,286)
13,491¥ 43,116

22,854(4,396)
18,458¥ 44,572

21,414(3,634)
17,77945,52821,646(1,330)20,31550,450

2016

2017

2018

2019

2020

¥6,152,026¥6,298,188¥6,573,924¥6,843,179¥7,037,507

5,301,162
5,488,203

5,501,639
5,654,175

5,729,754
5,913,402

5,986,450
6,180,746

6,195,363
6,393,649

433,499
230,323¥ 663,823

448,016
195,996¥ 644,013

466,141
194,380¥ 660,521

489,267
173,165¥ 662,433

513,114130,743¥ 643,858

2016

2017

2018

2019

2020

¥39,205,952
33,673,604
2,415,881
4,315,542
3,426,632
786,6092,472,006
6.48%¥40,992,241
34,772,475
3,166,600
5,121,169
4,088,485
934,940
2,525,540
6.44%¥42,803,504
34,724,011
5,426,922
5,231,498
2,944,065
2,523,252
2,582,199
6.30%¥47,146,055
35,305,536
10,057,448
8,474,888
4,128,641
5,085,094
3,295,771
7.70%¥46,947,214
34,688,890
10,514,377
3,724,420
2,460,009
1,224,617
2,976,811
6.31%

Years ended March 31

Statement of Operation Data:
Ordinary revenues:
Income from insurance premiums
Investment income
Other ordinary income
Total ordinary revenues
Ordinary expenses:
Insurance claims and other payments
Provision for policy and other reserves
Investment expenses
Operating expenses
Other ordinary expenses
Total ordinary expenses
Ordinary profit
Net extraordinary gains (losses)
Provision for reserve for policyholder dividends
Income before income taxes
Income taxes:
Current
Deferred
Total income taxes
Net income¥¥¥ millions

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:
Total shareholders’ equity
Total valuation and translation adjustment
Total net assets* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

Years ended March 31

Policy Results *:Policy amount in force
Individual term life insurance
J-type product, T-type product, Kaigo Relief and Kaigo Teiki Hoken
New policy amountIndividual term life insurance
J-type product, T-type product, Kaigo Relief and Kaigo Teiki Hoken
Surrender and lapse amount
Surrender and lapse rate

* The total of individual insurance, individual annuities, J-type product, T-type product, Kaigo Relief Alpha, etc. The new policy amounts include net increases from conversions.

Other Data:
Core profit
MCEV *
Solvency margin ratio
Number of in-house sales representatives
Number of agents¥ 104,829
1,078,000
1,341.9%
3,867
13,793* MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

92

T&D Holdings INTEGRATED REPORT 2020

¥ 105,677
1,417,400
1,252.6%
3,843
13,878¥ 100,781
1,473,200
1,206.2%
3,714
13,992¥

99,245
1,417,700
1,271.9%
3,786
14,132¥ 116,903
1,626,000
1,335.3%
3,746
14,413

T&D FINANCIAL LIFE
¥ millions

Years ended March 31

2016

2017

2018

2019

2020

Statement of Operation Data:
Ordinary revenues:¥165,436¥ 80,918¥176,474¥127,853¥335,910

Investment income

14,232

23,041

12,982

17,221

11,924

Other ordinary income

38,36551,874

7,036

5,683

6,660

218,035

155,834

196,492

150,758

354,495

Insurance claims and other payments

194,324

138,311

124,953

106,894

125,135

Provision for policy and other reserves2

050,164

26,791

174,312Investment expenses

7,950

213

4,888

1,941

30,117

Operating expenses

12,705

9,745

12,34911,453

19,373

Other ordinary expenses

1,840

1,363

1,592

1,612

3,309

216,822

149,634

193,948

148,694352,249

Income from insurance premiums

Total ordinary revenues
Ordinary expenses:

Total ordinary expenses
Ordinary profit

1,212

6,199

2,543

2,064

2,246

Net extraordinary gains (losses)(621)(3,612)

(461)

(552)

(756)

(3)

(1)

(1)

0

(0)

593

2,587

2,083

1,511

1,490

Provision for (Reversal of) reserve for policyholder dividends
Income before income taxes
Income taxes:
Current(1,735)

874

199

(456)

(754)

Deferred

1,837

(427)

295

956

1,178

Total income taxes

101

Net income

¥

446

492

¥

494

2,141

¥

1,588

¥

500

424

1,011

¥ 1,065¥ millions

2016

2017

2018

2019

2020

¥1,359,879¥1,313,747¥1,365,878¥1,438,819¥1,645,401

1,270,904

1,224,914

1,274,376

1,300,935

1,475,204

1,289,619

1,242,846

1,292,955

1,361,498

1,564,466

Total shareholders’ equity

67,88670,027

71,616

72,62773,693

Total valuation and translation adjustment

2,373

874

1,306

4,693

As of March 31

Balance Sheet Data:
Assets:Total assets
Liabilities:
Policy reserves
Total liabilities
Net assets:

Total net assets¥

70,260¥70,901¥

72,922¥

77,321

7,240¥

80,934* The above figures are calculated based on the prevailing accounting standards of each fiscal year.
¥ millions

2016

2017

2018

2019

2020

¥1,808,717¥1,879,380¥2,052,758¥2,172,963¥2,392,518

1,156,568

1,280,606

1,506,435

1,676,228

1,936,200

New policy amount

236,231

235,449

354,705

314,183

446,898

Surrender and lapse amount61,55956,36866,17489,152

79,846

Surrender and lapse rate

3.41%

3.12%

3.52%

4.34%

3.67%

¥ (5,063)

Years ended March 31

Policy Results *:Policy amount in force
Sales through independent insurance agents* The total of individual insurance and individual annuities.

Other Data:
Core profit (loss)¥ (5,545)

¥

(863)

¥ (1,466)

MCEV *

93,40097,400102,600

98,50066,5001,260.7%

1,295.6%

1,258.3%

1,101.7%

1,033.6%

Solvency margin ratio843¥* MCEV is shown in terms of hundreds of millions of yen. Based on Ultimate Forward Rate since fiscal 2019.

T&D Holdings INTEGRATED REPORT 202093Corporate Data

Consolidated Financial Statements
Consolidated Balance Sheet
As of March 31,

2019¥ millions

US$ thousands

2020

2020

Assets:Cash and deposits
Call loans
Monetary claims purchased

824,241¥

861,770$

7,918,501

1,037

35,669327,749

126,905

135,3131,243,348

765,481970,622

8,918,704

Securities (Notes 8, 13 and 14)

11,735,384

12,021,505

110,461,319

Loans (Notes 3 and 7)

1,669,989

1,697,539

15,598,082

369,465

380,633

3,497,506

Land (Note 2 (14))

207,148

214,604

1,971,927

Buildings

149,916

158,460

1,456,040

435

1,232

11,326

Construction in progress

6,655

1,737

15,964

Other tangible fixed assets

5,309

4,597

42,248

Monetary trusts

Tangible fixed assets (Note 4)

Lease assets

28,46730,789282,912

Software27,08029,447

270,580

Lease assets

221

172

1,582

1,166

1,169

10,749

691

666

6,125

Intangible fixed assets

Other intangible fixed assets
Due from agencies
Due from reinsurers

2,271

12,310113,118

Other assets (Note 14)

217,452

297,3732,732,461

Deferred tax assets

54,92578,022

716,921

Reserve for possible loan losses(1,599)(2,079)(19,107)¥15,794,711¥16,520,137$151,797,644

Total assets

94¥

T&D Holdings INTEGRATED REPORT 2020

¥ millions

US$ thousands

2019

2020

2020

¥13,859,097¥14,282,219$131,234,216

69,55467,765

622,676

13,706,879

14,137,872

129,907,857

82,66376,581

703,682

Due to agencies

408

1,136

10,443Due to reinsurers

1,432

7,462

68,569

Short-term debentures

6,000

5,999

55,125

Bonds (Note 9)

117,035

187,005

1,718,322

Other liabilities (Notes 10 and 14)

As of March 31,

Liabilities:
Policy reserves
Reserve for outstanding claims
Policy reserve
Reserve for policyholder dividends(Note 6)359,214615,062

5,651,591

Provision for bonuses to directors and audit & supervisory board members

273

281

2,589

Provision for share-based remuneration

336

633

5,824

51,03849,156451,678

65

59

543

Reserves under the special laws

235,098

243,0142,232,973

Reserve for price fluctuations

235,098

243,0142,232,973

15

56

522

5,106

4,899

45,01914,635,123

15,396,987

141,477,420

Net defined benefit liability
Provision for directors’ and audit & supervisory board members’ retirement benefits

Deferred tax liabilities
Deferred tax liabilities on land revaluation (Note 2 (14))
Total liabilities
Net assets:
Capital stock

207,111207,111

1,903,076

Capital surplus

156,740

125,316

1,151,484

Retained earnings

564,944603,5895,546,169

Treasury shares(64,863)(46,200)(424,518)

Total shareholders’ equity

863,933

889,817

8,176,212

Valuation difference on available-for-sale securities

328,020

262,5932,412,879

Deferred gains (losses) on hedging instruments(2,987)(2,381)(21,879)

Land revaluation (Note 2 (14))(35,869)(34,125)(313,570)

18

37

344
2,077,774

Foreign currency translation adjustments
Total accumulated other comprehensive income

289,181

226,124

Subscription rights to shares

1,081

876

8,052

Non-controlling interests

5,391

6,332

58,184

1,159,588

1,123,149

10,320,224¥15,794,711¥16,520,137$151,797,644

Total net assets
Total liabilities and net assets
See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 202095

Corporate Data

Consolidated Statement of Operation¥ millions

US$ thousands

Years ended March 31,

2019

2020

2020

Ordinary revenues¥2,140,162¥2,197,928$20,195,982

1,676,184

1,753,508

16,112,360

393,901

369,419

3,394,461

295,858

299,7632,754,421

5,240

—

—

Income from insurance premiums
Investment income
Interest, dividends and income from real estate for rent
Gains from monetary trusts, net

25

—

—

Gains on sales of securities

88,897

67,162

617,135

Gains on redemption of securities

1,168

—

—

Other investment income

2,452

2,492

22,904

Gains on investments in trading securities, net

258

—

—

70,07675,001

689,160

1,993,213

2,072,506

19,043,521

1,141,636

1,193,510

10,966,739

Insurance claims

326,575

363,062

3,336,051

Annuity payments

271,440

273,580

2,513,832

Insurance benefits

147,057

150,066

1,378,903

Surrender payments

340,505

339,448

3,119,074

Other payments

56,05667,352

618,878

469,615

431,0113,960,407

Gains on separate accounts, net
Other ordinary income
Ordinary expenses
Insurance claims and other payments

Provision for policy and other reserves
Provision for reserve for outstanding claims
Provision for policy reserve

1,804

—

—

467,792

430,9933,960,241

18

18

165

Investment expenses

112,285

164,819

1,514,470Interest expenses

907

1,027

9,445

Losses from monetary trusts, net—

21,386

196,514

Losses on investments in trading securities, net

—

257

2,366

16,89427,507

252,756

Devaluation losses on securities

3,128

14,880136,731

Losses from derivatives, net

65,61958,172534,529

Foreign Exchange losses, net

Interest portion of reserve for policyholder dividends

Losses on sales of securities

1,775

17,343

159,359

Provision for reserve for possible loan losses

36

481

4,425

Write-off of loans

9

34

316

Depreciation of real estate for rent

6,219

6,149

56,506

Other investment expenses

17,694

17,020156,396

—

557

5,121

Operating expenses

201,563

212,453

1,952,161

Other ordinary expenses

68,08670,424

647,103

24

287

2,638

¥ 146,949¥ 125,422$ 1,152,461

Losses on separate accounts, net

Equity in losses of affiliates
Ordinary profit(continued)

96

T&D Holdings INTEGRATED REPORT 2020

¥ millions

US$ thousands

2019

2020

2020

699

¥ 4,038$ 37,108

Gains on disposal of fixed assets

650

3,392

31,169State subsidy

42

646

5,938

Other extraordinary gains

6

—

—

18,58910,09392,748
6,179

Years ended March 31,

Extraordinary gains

Extraordinary losses

¥

870

672

Impairment losses (Note 16)

2,113

803

7,380

Provision for reserve for price fluctuations

15,402

7,916

72,740

202

701

6,448

Provision for reserve for policyholder dividends

27,144

21,883201,084

Income before income taxes

101,915

97,483895,737

Income taxes (current)

32,38331,768291,913

Income taxes (deferred)(3,316)(1,425)(13,100)

Total income taxes

29,06630,343278,813

Profit72,84867,139616,924

22

36

336

¥ 72,825¥67,103$616,587¥ millions

US$ thousands

Losses on disposal of fixed assets

Other extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

Consolidated Statement of Comprehensive Income
2019

2020

2020

¥ 72,848¥ 67,139$ 616,924(25,590)(65,424)(601,159)

1,332

606

5,573

Foreign currency translation adjustments

(0)

0

2

Share of other comprehensive income of associates accounted for using the equity method

5

19

177

(24,252)(64,798)(595,406)¥ 48,596¥ 2,341$ 21,517

48,5952,301

21,1501

39367

Years ended March 31,

ProfitOther comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedging instruments

Total other comprehensive income (Note 17)
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests
See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 202097Corporate Data

Consolidated Statement of Changes in Net Assets¥ millions
Shareholders’ equity

Accumulated other comprehensive income
Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income

Noncontrollinginterests

Year ended March 31, 2019

Capital stock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

¥207,111¥156,785¥516,585¥(46,703) ¥833,779

Dividends(24,699)(24,699)

Profit attributable to owners of parent

72,82572,82572,825(18,348)(18,348)¥353,590

Land
revaluation¥(4,320) ¥(35,637)¥11¥313,645

Subscription
rights toshares¥1,216

Total net
assets¥4,395 ¥1,153,036

Changes in the period(18,348)

Purchase of treasury shares(45)

Disposal of treasury shares

188
232

Reversal of land revaluation

143

143

232

232

Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year

—

(45)

48,358¥207,111¥156,740¥564,944(24,699)(25,570)

1,332

(232)

7

(24,463)

(135)

996

(23,601)

30,153(25,570)

1,332

(232)

7

(24,463)

(135)

996

6,552

¥(64,863) ¥863,933¥328,020¥(2,987) ¥(35,869)¥18¥289,181¥1,081(18,159)¥5,391 ¥1,159,588¥ millions
Shareholders’ equity

Accumulated other comprehensive income
Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments

Land
revaluation¥328,020¥(35,869)

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥1,081¥5,391¥1,159,588

Year ended March 31, 2020

Capital stock

CapitalsurplusRetainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

¥207,111¥156,740¥564,944¥(64,863) ¥863,933

Dividends(26,714)(26,714)(26,714)

Profit attributable to owners of parent

67,103

67,103

67,103¥(2,987)¥18¥289,181

Changes in the period(13,014)(13,014)(13,014)

(60)

313

252

252

(31,363)

31,363——(1,743)(1,743)Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury shares(1,743)

Reversal of land revaluation
Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year98—

(31,424)

38,645¥207,111¥125,316¥603,589

T&D Holdings INTEGRATED REPORT 2020

(65,426)

606

1,743

18

(63,057)

(204)

940

(62,322)

25,883(65,426)

606

1,743

18

(63,057)

(204)

940

(36,438)¥(46,200) ¥889,817¥262,593¥(2,381)¥(34,125)¥37¥226,124¥ 876¥6,332¥1,123,149

18,663

US$ thousands
Shareholders’ equity

Accumulated other comprehensive incomeLandrevaluation

Total
Foreign accumulatedothercurrencytranslation comprehenadjustments sive income

Subscription
rights toshares$(27,452) $(329,595)$172 $2,657,186$9,936

Valuationdifference
Deferredon available- gains (losses)
for-sale on hedging
securities instruments

Noncontrollinginterests

Year ended March 31, 2020

Capital stock

Retainedearnings

Total
Treasury shareholders’equitysharesBalance at the beginning of the year

$1,903,076 $1,440,233 $5,191,073$(596,008) $7,938,375

Dividends(245,466)(245,466)

Profit attributable to owners of parent

616,587

616,587

616,587(119,583)(119,583)(119,583)

(558)

2,882

2,323

2,323

(288,190)

288,190——(16,024)(16,024)

Capitalsurplus$3,014,061

Total net
assets$49,543 $10,655,042

Changes in the period

Purchase of treasury shares
Disposal of treasury shares
Retirement of treasury shares(16,024)

Reversal of land revaluation
Net changes of items other thanshareholders’ equity
Total changes in the period
Balance at the end of the year—

(288,749)

355,096$1,903,076 $1,151,484 $5,546,169(245,466)(601,182)

5,573

16,024

171(579,412)(1,883)8,640(572,655)

237,836(601,182)

5,573

16,024

171(579,412)(1,883)8,640(334,818)$(424,518) $8,176,212$2,412,879$344 $2,077,774$8,052

171,490$(21,879) $(313,570)$58,184 $10,320,224

T&D Holdings INTEGRATED REPORT 202099

Corporate Data

Consolidated Statement of Cash Flows
Years ended March 31,¥ millions

US$ thousands

2019

2020

2020

Cash flows from operating activities:¥ 101,915¥ 97,483

Depreciation of real estate for rent

6,219

6,149

56,506

Depreciation

11,892

12,497

114,830

Impairment losses

2,113

803

7,380

Income before income taxes

Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve$895,737

1,804(1,788)(16,435)

467,792

430,9933,960,241

18

18

165

27,144

21,883201,084

Increase (decrease) in reserve for possible loan losses

18

479

4,408

Increase (decrease) in provision for bonuses to directors and audit & supervisory board members

(2)

7

73

Increase (decrease) in provision for share-based remuneration

336

297

2,729

Increase (decrease) in net defined benefit liability

274(1,882)(17,298)

9

(6)

(62)

Interest portion of reserve for policyholder dividends
Provision for (reversal of) reserve for policyholder dividends

Increase (decrease) in provision for directors’ and audit & supervisory board members’
retirement benefits

15,402

7,916

72,740Interest, dividends and income from real estate for rent

(295,858)(299,763)(2,754,421)

Losses (gains) on investment securities(70,327)(23,959)(220,159)

907

1,027

9,445

Foreign exchange losses (gains)

1,174

15,066

138,440

Losses (gains) on disposal of tangible fixed assets(193)(2,207)(20,284)

Equity in losses (income) of affiliated companies

24

287

2,638

Decrease (increase) in amount due from agencies

48

25

230

Decrease (increase) in amount due from reinsurers

858(10,029)(92,157)(12,223)(9,323)(85,670)

Increase (decrease) in reserve for price fluctuations

Interest expenses

Decrease (increase) in other assets(excluding investment activities-related and financing activities-related)
Increase (decrease) in amount due to agencies

(249)

727

6,685

Increase (decrease) in amount due to reinsurers

(106)

6,029

55,407

Increase (decrease) in other liabilities(excluding investment activities-related and financing activities-related)

7,266(2,048)(18,821)

Others, net

75,796

94,251

866,047

Subtotal

342,056

344,934

3,169,482

Interest, dividends and income from real estate for rent received

303,888308,195

2,831,902

(912)

(927)

(8,521)

Policyholder dividends(33,435)(28,009)(257,366)

Others, net(1,948)2,108

19,372

Income taxes paid

(32,690)(35,205)(323,489)¥ 576,958¥ 591,097$ 5,431,380

Interest paid

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

100

T&D Holdings INTEGRATED REPORT 2020

Years ended March 31,

2019¥ millions

US$ thousands

2020

2020

Cash flows from investing activities:
Net decrease (increase) in cash and deposits¥

Investments in monetary claims purchased

(400)

¥

(5,300)(29,523)(14,440)$(48,699)(271,278)

Proceeds from sales and redemption of monetary claims purchased

13,72815,585

143,206

Investments in monetary trusts(92,532)(255,989)(2,352,196)

10,15734,800319,764

Purchase of securities(1,826,000)(1,984,103)(18,231,217)

Proceeds from sales and redemption of securities

1,509,010

1,443,996

13,268,366

Investments in loans(370,968)(367,123)(3,373,367)

350,823

335,345

3,081,365

Proceeds from monetary trusts

Collection of loans
Others, net(39,418)

271,4962,494,687

Subtotal(460,040)(540,816)(4,969,367)

Total of net cash provided by (used in) operating activities and investment transactions as above

116,918

50,280462,012Purchase of tangible fixed assets(19,914)(23,836)(219,025)

Proceeds from disposal of tangible fixed assets

1,570

4,732

43,484

Others, net

(300)

(214)

(1,967)(478,684)(560,134)(5,146,876)

—

(0)

(6)

Net cash provided by (used in) investing activities
Cash flows from financing activities:
Net increase (decrease) in short-term debenture
Proceeds from issuance of debt

12,50015,430141,780

Repayments of debt

(41,927)(12,117)(111,340)

Proceeds from issuance of bonds

50,00070,000643,204

Redemption of bonds(20,000)

—

—

1,040

1,024

9,411

Proceeds from share issuance to non-controlling shareholders

—

(79)

(732)

Payment of lease obligations

(450)

(685)

(6,299)Purchase of treasury shares(18,348)(13,014)(119,583)

5

9

91

(24,622)(26,629)(244,684)

(44)

(44)

(405)

0

0

1

(41,846)

33,893

311,437

Repayments to non-controlling shareholders

Proceeds from disposal of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Others, net
Net cash provided by (used in) financing activities

(908)

(973)

(8,943)

Net increase (decrease) in cash and cash equivalents

55,51863,882586,997

Cash and cash equivalents at the beginning of the year

798,538

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the end of the year (Note 19)¥854,057¥

854,057

7,847,625

917,940$ 8,434,623

See notes to consolidated financial statements.

T&D Holdings INTEGRATED REPORT 2020

101Corporate Data

Notes to Consolidated Financial Statements
Note 1

Notes on Going-Concern Assumption

Not applicable.
Note 2

Summary of Significant Accounting Policies(1) Basis of presentation(2) Principles of consolidation

On April 1, 2004, T&D Holdings, Inc. (the “Company”) was es-

a. Matters related to the scope of consolidation

tablished as a life insurance holding company, of which Taiyo Life(i) Number of consolidated subsidiaries: 18

Insurance Company (“Taiyo Life”), Daido Life Insurance Company

		Names of main consolidated subsidiaries are stated in(“Daido Life”) and T&D Financial Life Insurance Company (“T&D“Group Companies” of the Annual Report.

Financial Life”) (hereafter, the “Three Life Insurance Companies”)

T&D United Capital Co., Ltd. (“TDUC”) was estab-became wholly owned subsidiaries through share transfers. The

lished in the consolidated fiscal year ended March 31,

business combination was accounted for as a pooling of interests.

2020. TDUC is included in the scope of consolidated

The Company, including its domestic consolidated subsidiaries(the “T&D Insurance Group”), maintains its accounting records

subsidiaries.
T&D United Capital North America Inc. was establishedand prepares its financial statements in Japanese yen in accor-

by TDUC in the consolidated fiscal year ended Marchdance with the provisions of the Insurance Business Act of Japan31, 2020. It is included in the scope of consolidated(the “Insurance Business Act”) and in conformity with generally

subsidiaries.

accepted accounting principles and practices in Japan.
The accompanying consolidated financial statements are com-

In addition, Pet & Family Small-amount Short-term
Insurance Company converted to nonlife insurance

piled from the financial statements prepared by the Company ascompany on April 1, 2019 and renamed to Pet & Family

required by the Financial Instruments and Exchange Act of Japan.

Insurance Co., Ltd.

In preparing the consolidated financial statements, certain items(ii) Names of main non-consolidated subsidiaries, etc.: none

presented in the original financial statements have been reclassified and summarized for readers outside Japan. These consolidated financial statements have been prepared on the basis ofgenerally accepted accounting principles and practices in Japan,
which are different in certain respects from the application andb. Matters related to the application of the equity method(i)	Number of non-consolidated subsidiaries accounted forunder the equity method: none(ii)	Number of affiliates accounted for under the equity

disclosure requirements of International Financial Reporting

method: 4Standards. In addition, the accompanying footnotes include in-

The affiliates accounted for under the equity method

formation that is not required under generally accepted account-

are Alternative Investment Capital Limited, Thuriya

ing principles and practices in Japan, but is presented herein as

Ace Technology Company Limited, Capital Taiyo Life

additional information to the consolidated financial statements.

Insurance, Ltd. and one other company.

The translations of Japanese yen amounts into U.S. dollar

Capital Taiyo Life Insurance, Ltd. is included in theamounts are included solely for the convenience of the readers

scope of affiliates accounted for under the equity meth-and have been made, as a matter of arithmetical computationod, because Taiyo Life acquired its stocks issued throughonly, at the rate of 1 U.S. dollar = 108.83 Japanese yen, which

third-party share issuance on August 22, 2019.

was the approximate rate prevailing at the end of March, 2020.

(iii)	Names of non-consolidated subsidiaries and affiliates not

The translations should not be construed as representations that

accounted for under the equity method, etc.: nonesuch yen amounts have been, could have been or could in the
future be converted into U.S. dollars at that or any other rate.
Amounts of less than one million Japanese yen and one thou-(iv)	For the companies accounted for under the equity
method for which the closing date is different from theconsolidated closing date, the financial statements ofsand U.S. dollars have been eliminated. As a result, Japanese yen

each company’s fiscal year are used. In addition, for someand U.S. dollar totals shown herein do not necessarily agree withof the companies accounted for under the equity meth-

the sum of the individual amounts.

od, financial statements, based on provisional settlementof accounts implemented on other record date, are used.

102

T&D Holdings INTEGRATED REPORT 2020c.	Matters related to the fiscal year of consolidated subsidiaries, etc.

For some of the consolidated subsidiaries, translation

	The closing date of some consolidated subsidiaries isdifferences of bonds in foreign currency-denominatedDecember 31. In preparing the consolidated financial state-available-for-sale securities are treated as follows: thements, financial statements as of that date are used andtranslation differences from foreign currency fair value

necessary adjustments are made on consolidation to reflect

fluctuations are recorded as “net unrealized gains

significant transactions that occurred between the closing(losses)” and the remaining differences as “foreign

date and the consolidated closing date.

exchange gains (losses).”(3) Foreign currency translation

The overview of the risk management policies of policy-re-

Foreign currency assets and liabilities are translated into Japaneseserve-matching bonds

yen at the prevailing foreign exchange rates at the consolidated[Taiyo Life]balance sheet date.

Managed by setting the investment policy of attempting toAssets, liabilities, revenues and expenses of the Company’s af-

effectively reduce the risk of the whole portfolio by asset mix

filiates located outside Japan are translated into Japanese yen at

which is based on a balanced-type ALM aiming at exceeding

the exchange rates in effect at the respective balance sheet date.

medium- and long-term liability cost.

Translation differences of foreign currencies are included in net

Taking into account this investment policy and based on theassets as foreign currency translation adjustments or non-con-“Temporary Treatment of Accounting and Auditing Concerning

trolling interests.

Policy-Reserve-Matching Bonds within the Insurance Industry”(JICPA, Industry Audit Committee Report No. 21), the following(4) Accounting policy for measuring significant assets

insurance policies are identified and classified as a sub-segment.

a.	Evaluation criteria and evaluation method for securities (in-– All policies except for group insurance products segment,

cluding cash and deposits/monetary claims purchased which

other insurance product segment, non-participating currency

are equivalent to securities and securities invested as trust

designation type single-premium individual annuity insurance,

properties in monetary trusts)

non-participating currency designation type special endowment(i)	Trading securities

insurance with living benefit, etc. in the general asset segment

		– Fair value method (costs of securities sold are calculated based on the moving average method)– All non-participating currency specific-type single-premium
individual annuity insurance policies and non-participating(ii) Held-to-maturity bonds

currency designation type special endowment insurance with		

living benefit by currency in the general asset segment– Amortized cost method based on the moving averagemethod (straight-line method)– All defined contribution corporate pension insurance policies(iii) Policy-reserve-matching bonds

and all group pure endowment insurance in the group annuity

		

insurance asset segment– Amortized cost method based on the moving averagemethod (straight-line method)(iv) Available-for-sale securities		– Securities with market value are valued by the fair value
method (costs of securities sold are calculated based– All insurance policies in the single-premium whole life/annuity
insurance asset segment– All insurance policies in the variable interest rate type single-premium insurance asset segmenton the moving average method) based on the market
price, etc., of the last day of the consolidated fiscal year				– Securities deemed extremely difficult to determine[Additional information]
As for the policies of following insurance products which weremarket value, which are public and corporate bonds

launched in the consolidated fiscal year ended March 31, 2020,(including foreign bonds), for which the difference

following sub-segments are set in order to implement risk manage-

between the purchase price and face value is recog-

ment in accordance with the cash flow characteristics of liabilities.

nized as an interest rate adjustment are valued by the– Non-participating currency designation type special endow-

amortized cost method based on the moving averagement insurance with living benefit is included in the existing

method (straight-line method)sub-segment of non-participating currency designation type– Securities other than the above are valued by the cost
method based on the moving average method
Valuation differences on available-for-sale securities are

single-premium individual annuity insurance. The sub-segment
is set by currency.
– A new sub-segment is set for non-participating variable interest

included in net assets.
T&D Holdings INTEGRATED REPORT 2020103

Corporate Data

rate type single-premium whole life survival benefit nursing(6) Reserve for possible loan losses

care annuity insurance.

The reserve for possible loan losses of the Three Life Insurance

In addition, these changes does not have an impact on the

Companies is allocated in accordance with the self-assessment

consolidated balance sheet and statement of operation as of thecriteria and amortization/provision criteria of assets in order toend of the consolidated fiscal year ended March 31, 2020.

provide for losses due to irrecoverable credits, as follows:[Daido Life]

ruptcy such as bankruptcy and civil rehabilitation, or in a state ofManaged by setting the investment policy fully considering thesubstantial bankruptcy, the remaining amount of the loan after

characteristics and the risk tolerance of insurance products indirectly deducting the amount stated below, less the estimatedorder to ensure the fulfillment of future obligations.

amount collectible from collateral and guarantees is recorded.

For loans to borrowers who are in a state of legal/formal bank-

Based on this investment policy, sub-segments in accordance

For loans to borrowers who are not yet bankrupt but highlywith the characteristics of the insurance products are set andlikely to fall into bankruptcy, the amount deemed necessary frombonds held in the attempt to control the duration within eachthe overall assessment of the borrowers’ solvency is recorded

sub-segment are classified as policy-reserve-matching bonds. The

from the remaining amount of the loan after deducting the esti-

sub-segments are set as follows:

mated amount collectible from collateral and guarantees.

– Individual insurance/individual annuity insurance in the general
asset segment– Individual insurance/individual annuity insurance in the
non-participating insurance asset segment (subjects are the
cash flows likely to occur in the period of over 5 years andwithin 30 years in the future)– Group annuity insurance in the group annuity insurance asset
segment

For loans other than the above (performing loans and doubtful
loans), historical loan-loss ratio calculated from the loan losses
from the fixed period in the past, multiplied by the loan amount,etc., is recorded.
All loans are subject to asset assessment by the related division
based on the self-assessment criteria of the assets. The reserve
mentioned above is implemented based on the assessment
results, after the asset auditing division independent from therelated division audits the assessment results.

[T&D Financial Life]For collateralized or guaranteed loans to borrowers subject

Sub-segments are set in accordance with the characteristics of theto bankruptcy or substantial bankruptcy, the amount of loans

insurance products and the asset management policy is formulat-

exceeding the estimated value of collateral or guarantees,

ed considering each sub-segment in order to manage interest rate

which were deemed uncollectible, was directly deducted fromrisk appropriately. Further, the matching of the duration of policy

the amount of loans in the amounts of ¥372 million and ¥365

reserves and policy-reserve-matching bonds within constant width

million [$3,360 thousand] for the years ended March 31, 2019are verified regularly. The sub-segments are set as follows:

and 2020, respectively.

– Individual insurance (the portion of the future payout at thecertain attained age and above of the subject insurance type)

Consolidated subsidiaries other than the Three Life Insurance
Companies allocate reserves for possible loan losses, in accor-– Accumulation rate type individual insurance

dance with criteria equivalent to the above, based on the results– Accumulation rate type fixed annuity insuranceof the assessment which is implemented in the scope deemed

Note that some insurance types and benefits are excluded.

necessary considering the importance.

Evaluation criteria and evaluation method of derivative transactionsb.	(7) Allocation method for reserve for price fluctuations

	Evaluation of derivative transactions is processed based on

Reserves for price fluctuations of the Three Life Insurance

the fair value method.

Companies are allocated in order to provide for losses due toprice fluctuations, which is pursuant to requirements under(5) Processing method for deferred assets
Bond issuance costs are processed as expenses in full amountwhen incurred.

104

T&D Holdings INTEGRATED REPORT 2020

Article 115 of the Insurance Business Act.

(8) Funding method for policy reserve(13) D epreciation method for significant depreciable assets

Policy reserves of the Three Life Insurance Companies are

a. Tangible fixed assets (except for lease assets)

reserves pursuant to requirements under Article 116 of the	Depreciation of tangible fixed assets (except for lease assets)

Insurance Business Act. The premium reserve is calculated basedis mainly calculated under the declining-balance method.

on the following methods.

Depreciation of buildings (except for building and acces-– For policies subject to standard policy reserve, the method es-

sories, and structures) acquired on and after April 1, 1998,

tablished by the Commissioner of the Financial Services Agency

and building and accessories, and structures acquired on(Notification No. 48 of the Ministry of Finance (1996))

and after April 1, 2016, is calculated under the straight-line– For policies not subject to standard policy reserve, net level
premium method
In addition, Daido Life is funding additional policy reservesin accordance with Article 69, Paragraph 5 of the Ordinancemethod. The main durable years are as follows:– Buildings, building and accessories, and structures: 2-50
years– Furniture and fixtures: 2-20 years

for Enforcement of the Insurance Business Act, for certain
individual annuity insurance for which the annuity payment

b. Intangible fixed assets (except for lease assets)

has been initiated.

	Depreciation of software used in-house is calculated under
the straight-line method over a useful life of five years.

(9)	Provision for bonuses to directors and audit &supervisory board membersc. Lease assets

To provide for payment of bonuses to directors and audit & su-	For the depreciation of lease assets, lease assets with respect

pervisory board members, a provision for the directors’ and audit

to ownership-transfer finance leases are calculated under the& supervisory board members’ bonuses is recorded based on thesame method for self-owned tangible fixed assets, and lease

expected amount to be paid in the year ended March 31, 2020.

assets with respect to non-ownership-transfer finance leases arecalculated under the straight-line method over the lease period.

(10) P rovision for share-based remuneration
To provide for delivery of stock of the Company to directors(14) Land revaluation

and audit & supervisory board members, the estimated amount

Taiyo Life revalued its land for operating purposes based on Act

of share benefit obligations based on the internal rules of theon Revaluation of Land (Act No. 34 of 1998). Regarding theCompany and Three Life Insurance Companies is recorded in

valuation differences between the previous and the revalued

provision for share-based remuneration.

amounts, the tax equivalent to this valuation differences has
been recorded in Liabilities section as “Deferred tax liabilities on(11) P rovision for directors’ and audit & supervisoryboard members’ retirement benefits

land revaluation” and the amount after deducting the tax equivalent from the valuation differences is recorded in Net Assets as

To provide for directors’ and audit & supervisory board members’“Land revaluation.”retirement benefits, the Company sets up a provision for direc-– The method of revaluation provided for in Article 3, Paragraphtors’ and audit & supervisory board members’ retirement benefits
based on the internal rules of certain consolidated subsidiaries,

3 of the same law
The amount is rationally adjusted and calculated based on thewhich is recorded in the amount recognized to have accrued aslisted land price value as prescribed in Article 2, Item 1 of theof March 31, 2020.

Order for Enforcement of the Act on Revaluation of Land (ActNo. 119 of 1998), the benchmark land price as prescribed in(12) A ccounting method for employees’ retirement benefits

Article 2, Item 2 of the same, and an appraisal by the real estate

For the calculation of retirement benefit obligations, the method

appraisers as prescribed in Article 2, Item 5 of the same, etc.

for attributing the expected retirement benefit amount to each– Date of revaluation: March 31, 2002

period up to the current fiscal year-end is based on the benefit
formula standard.
Actuarial gains and losses, past service costs and losses relating
to changes in accounting policies are expensed in the fiscal year
which they accrue.

T&D Holdings INTEGRATED REPORT 2020

105Corporate Data

(15) Method for significant hedge accounting
a. Hedge accounting method for Taiyo Life(i) Method for hedge accounting

hedge accounting. Allocation treatment is adopted forare used in hedge accounting. Special treatment is applied

foreign exchange contract transactions hedging foreign

for interest rate swap transactions qualifying for special

currency fixed deposits qualifying for allocation treatment.

treatment, and allocation treatment is applied for currency(ii) Hedging instrument and hedged item

swap transactions qualifying for allocation treatment.

		Hedging instrument: foreign exchange contract

		Hedged item:	foreign currency-denominated1) Hedging instrument: interest rate swap

			 Hedged item:		

foreign currency-denominated loans

		Based on internal rules, etc., concerning asset management, foreign exchange fluctuation risks of hedged items

foreign currency-denominated assets

4) Hedging instrument: option

			 Hedged item:	domestic and foreign stocks,

		

fixed deposits(iii) Hedging policy3) Hedging instrument: foreign exchange contract

			 Hedged item:		

available-for-sale securities andloans and bonds

2) Hedging instrument: currency swap

			 Hedged item:
		(i) Method for hedge accounting		Fair value hedge treatment is adopted for the method forDeferral hedge treatment and fair value hedge treatment(ii) Hedging instrument and hedged item		b. Hedge accounting method for Daido Lifeare hedged within a certain range.
(iv) Evaluation method for hedge effectiveness		Hedge effectiveness is evaluated by ratio analysis whichdomestic and foreign-listed invest-

mainly compares the fair value fluctuation of hedged

ment trusts, domestic bonds

items and hedging instruments.

5) Hedging instrument: credit transaction

However, the evaluation is omitted if the material con-			 Hedged item:	domestic and foreign stocks, do-ditions of the hedged item and the hedging instrument

mestic and foreign-listed invest-

are the same and hedge effectiveness is high.

ment trusts		6) Hedging instrument: forward contract

			 Hedged item:	domestic and foreign stocks, domestic and foreign-listed invest-

c. Hedge accounting method for T&D United Capital(i) Method for hedge accounting		Deferral hedge treatment is adopted for the method forment trusts

hedge accounting. Furthermore, allocation treatment is(iii) Hedging policy

adopted for the method, because of qualifying for alloca-

Based on internal rules, etc., in accordance with the risktion treatment.

management policy concerning asset management, cash(ii) Hedging instrument and hedged item

flow and price fluctuation risks related to hedged items

		

Hedging instrument: foreign exchange contract

are hedged within a certain range.

		Hedged item:	foreign currency-denominated(iv) Evaluation method for hedge effectiveness(iii) Hedging policy

ods such as ratio analysis which compares the cumulative		Based on a resolution made at a board of directors

total of market fluctuations or cash flow fluctuations

meeting concerning acquisition of foreign currency-de-of hedged items and hedging instruments. However,nominated stocks, foreign exchange fluctuation risks ofevaluation of hedge effectiveness is omitted for interest

hedged items are hedged within a certain range.

rate swap transactions under special treatment, etc.,(iv) Evaluation method for hedge effectivenesscurrency swap transactions under allocation treatment,		The evaluation for hedge effectiveness is omitted be-contracts in which both the hedged item and the hedg-

cause the material conditions of the hedged item and theing instrument are denominated in the same currency,

hedging instrument are the same and hedge effective-

option transactions in which hedged items are domestic/

ness is high.

foreign stocks and domestic/foreign-listed investment
trusts, credit transactions and forward contracts, andoption transactions in which domestic bonds are thehedged item.

106

stocks (forecasted transaction)

Hedge effectiveness is evaluated semi-annually by meth-

T&D Holdings INTEGRATED REPORT 2020

(16) Accounting treatment for consumption taxes

Revenue Recognition” (ASBJ Guidance No. 30, issued on

The accounting treatment of consumption tax and local con-March 31, 2020)

sumption tax is based on the tax exclusion method. However,expenses of the nonlife insurance subsidiary such as loss ad-a. Summary

justment expenses, sales and administrative expenses, etc. are	A comprehensive accounting standard for revenue recognition.

treated based on the tax inclusion method. Furthermore, non-de-

Revenue will be recognized applying the following five steps.

ductible consumption tax on assets, etc., which is prescribed

Step 1: Identify the contract with a customer.

in the tax law as deferred consumption tax, etc., is recorded in

Step 2: Identify the performance obligations of the contract.

other assets and amortized over a 5-year period on a straight-

Step 3: Calculate the transaction price.

line basis, whereas tax other than deferred consumption tax is

Step 4: Allocate the transaction price to the performance

expensed in the fiscal year in which it accrues.

obligations of the contract.
Step 5: Recognize the revenue at the time when the perfor-(17) S cope of cash and cash equivalents in the
consolidated statements of cash flows

mance obligations are fulfilled or as the performanceobligations is being fulfilled.

Cash and cash equivalents in the consolidated statements ofb. Scheduled date of application

cash flows consist of cash, deposits withdrawable at any time	Scheduled to be applied from the beginning of the fiscal year

and readily convertible into cash, and short-term investments

starting April 1, 2021.

(term deposits, call loans, commercial paper, treasury discountc. Effect of the application of the accounting standards

bills, etc.) with insignificant risk of price fluctuations and with a	The amount of the impact is under evaluation at the time

maturity of 3 months or less at the time of acquisition.

of preparing the consolidated financial statements for the
consolidated fiscal year ended March 31, 2020.

(18) Application of consolidated taxation system
The consolidated tax payment system is applied to the Company[Accounting Standard for Fair Value Measurement, etc.]

and some of its consolidated subsidiaries, with the Company as– “Accounting Standard for Fair Value Measurement” (ASBJ

the consolidated taxpayer parent company.

Statement No. 30, issued on July 4, 2019)– “Implementation Guidance on Accounting Standard for Fair Value(19) A pplication of tax effect accounting for transition fromconsolidated taxation system to group tax sharing system
The Company and some of its consolidated subsidiaries havecalculated the amount of deferred tax assets and deferred tax
liabilities according to the tax acts before amended based on the

Measurement” (ASBJ Guidance No. 31, issued on July 4, 2019)– “Accounting Standard for Measurement of Inventories” (ASBJ
Statement No. 9, issued on July 4, 2019)– “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, issued on July 4, 2019)

treatment of Paragraph 3 of “Practical Solution on the Treatment– “Implementation Guidance on Disclosures about Fair Valueof Tax Effect Accounting for the Transition from the Consolidatedof Financial Instruments” (ASBJ Guidance No. 19, issued on

Taxation System to the Group Tax Sharing System”(ASBJ Practical

March 31, 2020)

Issues Task Force No. 39, March 31, 2020) instead of applying
the provision on Paragraph 44 of “Implementation Guidancea. Summaryon Tax Effect Accounting” (ASBJ Guidance No. 28, February

	In order to improve the comparability of domestic and in-

16, 2018), regarding the transition to group tax sharing system

ternational accounting standard, “Accounting Standard forestablished in “Act for Partial Amendment of the Income Tax

Fair Value Measurement” and “Implementation Guidance on

Act, etc.” (Act No. 8 of 2020), and items for which the non-con-

Accounting Standard for Fair Value Measurement” (“account-solidated taxation system has been reviewed in line with theing standard for fair value measurement, etc.”) were devel-transition to the group tax sharing system.

oped, and the guidance for fair value measurement, etc. wereenacted. Accounting standard for fair value measurement, etc.

(20) Unadopted accounting standards, etc.

are adopted to the fair values of following items.

[Accounting Standard for Revenue Recognition, etc.]– F inancial instruments defined in “Accounting Standard for– “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, issued on March 31, 2020)– “Implementation Guidance on Accounting Standard for

Financial Instruments”– Inventories held for trading purpose defined in“Accounting Standard for Measurement of Inventories”

T&D Holdings INTEGRATED REPORT 2020107Corporate Data

In addition, “Implementation Guidance on Disclosures(excluding those who are part-time directors such as outside

about Fair Value of Financial Instruments” was revised, anddirectors and non-residents in Japan) and executive officers

notes such as breakdown per levels of fair value of finan-(excluding those who are non-residents in Japan, and togeth-

cial instruments were enacted.

er with directors, referred to as “Directors” ) of the Company

b. Scheduled date of application

and Three Life Insurance Companies, with an aim to enhance	Scheduled to be applied from the beginning of the fiscal

the motivation of Directors to contribute to improving businessyear starting April 1, 2021.
c. Effect of the application of the accounting standards

performance and enhancing corporate value over the medium-to
long-term.

	The amount of the impact is under evaluation at the time

The accounting treatment of the System is based on “Practicalof preparing the consolidated financial statements for the

Solution on Transactions of Delivering the Company’s Own Stockconsolidated fiscal year ended March 31, 2020.

to Employees etc. through Trusts” (ASBJ Practical Issues Task
Force (PITF) No. 30, March 26, 2015)[Accounting Standard for Accounting Policy Disclosures,
Accounting Changes and Error Corrections]a. Summary– “Accounting Standard for Accounting Policy Disclosures,	Based on the internal rules of the Company and Three Life

Accounting Changes and Error Corrections” (ASBJ Statement

Insurance Companies, the points are granted to Directors

No. 24, issued on March 31, 2020)

and they are delivered and provided through a trust of theCompany’s shares equivalent to accumulated points upona. Summary

retirement and a monetary equivalent of the substitution

	The purpose of the accounting standard is to indicate the sum-value of the Company’s shares. The Company’s shares to bemary of principle and procedure of adapted accounting treat-delivered to Directors will be acquired in advance by money

ment if the rules of relating accounting standards are unclear.

in trust by the Company.

b. Scheduled date of applicationb. The Company’s shares remaining in BIP Trust	Scheduled to be applied from the fiscal year ending March	For the Company’s shares remaining in BIP Trust, the carrying

31, 2021 onward.

value in the trust is recorded as the treasury share in net asset(excluding ancillary expenses). The carrying value of treasury[Accounting Standard for Disclosure of Accounting Estimates]

share in the Trust was ¥1,322 million, and the number of– “Accounting Standard for Disclosure of Accounting Estimates”

treasury share in the Trust was 827,900 shares for the fiscal(ASBJ Statement No. 31, issued on March 31, 2020)year ended March 31, 2019. Also, as of the end of the fiscal
year ended March 31, 2020, the carrying value of treasury

a. Summary

share in the Trust is ¥1,275 million [$11,717 thousand], and	The purpose of the accounting standard is to disclose infor-

the number of treasury share in the Trust is 798,400 shares.

mation contributes to understanding of financial statements
users. The information is about the accounting estimates of[Accounting Estimates of Effect of COVID-19]

items which are suspected to have considerable impact on

The Company and Three Life Insurance Companies implement

the financial statements for next fiscal year, if the amounts

accounting estimates of impairment accounting of fixed assets,

recorded on the financial statements for this fiscal year are

etc. based on the information available at the time of preparing

accounting estimates.

the financial statements on the assumption that the current situ-

b. Scheduled date of application

ation continues. The impact of COVID-19 is small in terms of the	Scheduled to be applied from the fiscal year ending Marchamounts and accounting estimates from this fiscal year onwards.

31, 2021 onward.
[Additional information][Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts]
The Company has introduced a trust type stock compensation
system(the “System”), the Board Incentive Plan (BIP) Trust, whichuses a trust to deliver the Company’s shares, etc. to directors

108

T&D Holdings INTEGRATED REPORT 2020

Note 3Loans

The amounts of delinquent loans of the Company and its consolidated subsidiaries are as follows:¥ millions

As of March 31,

Loans to bankrupt companies
Past due loans
Loans overdue for three months or more
Restructured loans
Total

Loans to bankrupt companies are loans to borrowers that are

US$ thousands

2019

2020

2020

¥ 138

¥ 118

$ 1,092

287

449

4,133

1,738

1,747

16,053

21

21

194

¥2,186¥2,336$21,473

Loans overdue for three months or more are loans other thansubject to bankruptcy, corporate reorganization or rehabilitation

those categorized as loans to bankrupt companies or past due

or other similar proceedings on which the Company and its

loans for which principal and/or interest are overdue for three

consolidated subsidiaries have stopped accruing interest aftermonths or more beginning the day after the agreed due date.

determining that collection or repayment of principal or interest

Restructured loans are loans other than those categorized as

is unlikely due to a significant delay in payment of principal orloans to bankrupt companies, past due loans or loans overdue

interest or for some other reason.

for three months or more for which agreements have been madePast due loans are loans, other than those categorized as

between the relevant parties to provide a concessionary interest

loans to bankrupt companies and loans for which due dates for

rate, rescheduling of due dates for interest and/or principal pay-interest payments have been rescheduled for purposes of restruc-ments, waiver of claims and/or other terms in favor of the bor-turing or supporting the borrower, on which the Company andrower for purposes of restructuring or supporting the borrower.

its consolidated subsidiaries have stopped accruing interest basedon self-assessment.

The direct write-downs of estimated uncollectable loans are
as follows:¥ millions

US$ thousands

As of March 31,

2019

2020

2020

Loans to bankrupt companies

¥ 72

¥ 72

$ 668

Past due loans

103

120

1,107

¥ millions

US$ thousands

Note 4

Accumulated Depreciation of Tangible Fixed Assets

The amounts of accumulated depreciation of tangible fixed assets are as follows:
Years ended March 31,

Accumulated depreciation of tangible fixed assets

Note 5

2019

2020

2020

¥235,919¥241,486$2,218,930

Separate Account Assets

The amounts of separate account assets as provided in Article 118, Paragraph 1 of the Insurance Business Act are as follows. The amountsof liabilities are equal to the amounts of assets.
¥ millions

Years ended March 31,

Separate account assets as provided in Article 118, Paragraph 1 of the Insurance Business Act

Note 6

US$ thousands

2019

2020

2020

¥50,994¥27,022$248,297¥ millions

US$ thousands

Reserve for Policyholder Dividends

The changes in reserve for policyholder dividends included in policy reserves are as follows:
2019

2020

2020

Balance at the beginning of the year

¥ 88,889¥ 82,663$ 759,565

Policyholder dividends

Years ended March 31,(33,435)(28,009)(257,366)

Increase in interest

18

18

165

Increase due to other reasons

46

25

233

27,144

21,883201,084¥ 82,663¥ 76,581$ 703,682

Provision for reserve for policyholder dividends
Balance at the end of the year

T&D Holdings INTEGRATED REPORT 2020

109

Corporate Data

Note 7

Unused Loan Balance under Loan Commitments

The unused loan balance under loan commitments is as follows:¥ millions

Years ended March 31,

Total amount of loan commitments

US$ thousands

2019

2020

2020

¥31,301¥52,144$479,137

Balance of loans outstanding

10,975

13,737

126,225

Balance¥20,326¥38,407$352,911¥ millions

US$ thousands

Note 8

Lending Securities for Loan Agreements

The lending securities for loan agreements are as follows:
Years ended March 31,

Lending securities for loan agreement

Note 9

2019

2020

2020

¥746,444¥1,541,284$14,162,312

Bonds

Bonds include subordinated bonds, of which the payment priority is subordinated to other debts. The amounts are as follows:¥ millions

US$ thousands

Years ended March 31,

2019

2020

2020

Subordinated bonds¥87,000¥157,000$1,442,616

Note 10

Other Liabilities

Other liabilities include subordinated borrowings, of which the payment priority is subordinated to other debts. The amounts are as follows:¥ millions

Years ended March 31,

Subordinated borrowings

Note 11

US$ thousands

2019

2020

2020

¥13,000¥13,000$119,452

Future Contributions to the Life Insurance Policyholders Protection Corporation of JapanThe amounts of the Three Life Insurance Companies’ future contributions to the Life Insurance Policyholders Protection Corporation ofJapan, which are estimated in accordance with Article 259 of the Insurance Business Act, are as follows. The contributions are recordedon the consolidated statement of operation as an operating expense when contributed.
¥ millions

Years ended March 31,

Contributions to the Life Insurance Policyholders Protection Corporation

Note 12

US$ thousands

2019

2020

2020

¥20,685¥20,771$190,864

Organizational Change Surplus

The amounts of the organizational change surplus prescribed in Article 91 of the Insurance Business Act, are as follows:¥ millions

US$ thousands

2019

2020

2020

Taiyo Life Insurance Company¥63,158¥63,158$580,336

Daido Life Insurance Company

10,836

10,836

99,568¥ millions

US$ thousands

Years ended March 31,

Note 13

Stocks of Affiliated Companies

Stocks of affiliated companies included in securities are as follows:

110

Years ended March 31,

2019

2020

2020

Stocks of affiliated companies¥615¥1,087$9,995

T&D Holdings INTEGRATED REPORT 2020

Note 14

Assets Pledged as Collateral and Secured Debts

Assets pledged as collateral are as follows:¥ millions

Securities (Japanese government bonds)

US$ thousands

2019

2020

2020

¥256,056¥ 788,254$ 7,242,985

Years ended March 31,

Securities (Corporate bonds)

21,670——

Securities (Foreign securities)

567,489

783,493

7,199,239

125

1,516

13,929¥845,340¥1,573,263$14,456,155

Cash collateral pledged for financial instruments
Balance

Of these assets, securities are mainly pledged as a substitute for the overdraft limit of the exclusive account of real-time gross settlementof government bonds with the Bank of Japan, bond-lending transactions secured by securities, and margin for futures contracts, etc.
Secured debts¥ millions

Cash collateral received for bond-lending transactions

Note 15

2020

2020

¥161,672¥389,338$3,577,493

Fair Value of Financial Assets Received as Collateral with Free Right of Disposal¥ millions

Financial Assets Received as Collateral with Free Right of Disposal

US$ thousands

2019

2020

2020

¥34,988¥130,643$1,200,432

Years ended March 31,

Note 16

US$ thousands

2019

Years ended March 31,

Impairment Losses on Fixed Assets

The items regarding impairment losses on fixed assets are as follows:(1) Grouping of assets(2)	Circumstances which led to the recognition of
impairment losses

The Three Life Insurance Companies’ group real estate owned for
insurance operations, etc., as a single asset group and other as-

For some rental properties, etc., carrying amount was reduced tosets such as rental property and unused real estate are grouped

the recoverable amount and the reduced amount was recorded

separately by each property.

in extraordinary losses as impairment losses because of a signifi-

Each of the consolidated subsidiaries other than the Company
and the Three Life Insurance Companies, groups real estate heldcant drop in the market price and a decline in profitability due tothe stagnant rental income level, etc.

for its own operations as a single category.

(3) Impairment losses recognized by asset group and the breakdown of the amounts of impairment losses by fixed asset type
Year ended March 31, 2019¥ millions

Asset

Location

Rental properties, etc.

Tokushima City, Tokushima Prefecture, etc. (29 assets)

Land

Buildings, etc.

Total

¥1,359¥753¥2,113

Year ended March 31, 2020¥ millions

US$ thousands

Asset

LocationLand

Buildings, etc.

Total

Total

Rental properties, etc

Niigata City, Niigata Prefecture, etc. (15 assets)

¥449

¥353

¥803

$7,380T&D Holdings INTEGRATED REPORT 2020111

Corporate Data(4)	Method for calculating the recoverable amountetc., is calculated by discounting future cash flows by 5.30% for

The recoverable amount is based on the value in use or net re-

the fiscal year 2018. In principle, the net realizable value for real

alizable value for rental properties, etc. In the consolidated fiscal

estate owned for rental properties is calculated by subtracting

year ended March 31, 2020, net realizable value is adopted forthe estimated costs of disposal from the appraisal value calculat-

the method.

ed in accordance with the real estate appraisal standard.

The value in use for real estate owned for rental properties,

Note 17

Consolidated Statement of Comprehensive Income

Reclassification adjustments and tax effects regarding other comprehensive income are as follows:
Years ended March 31,¥ millions

US$ thousands

2019

2020

2020

$(810,498)

Valuation difference on available-for-sale securities:
Amount occurred during the year

¥ 33,929¥(88,206)

Reclassification adjustments(67,100)

685

6,297

Amount before tax effect(33,171)(87,521)(804,200)

Tax effect
Valuation difference on available-for-sale securities

7,580

22,096

203,040(25,590)(65,424)(601,159)

Deferred gains (losses) on hedging instruments:
—

653

6,003

Reclassification adjustments

1,850

212

1,955

Amount before tax effect

1,850

866

7,959

Tax effect

(518)

(259)

(2,385)

Deferred gains (losses) on hedging instruments

1,332

606

5,573

(0)

0

2

Amount occurred during the year

Foreign currency translation adjustments:
Amount occurred during the year
Share of other comprehensive income of associates accounted for using the equity method:Amount occurred during the year

5

19

177

Total other comprehensive income¥(24,252)¥(64,798)$(595,406)

Note 18

Consolidated Statement of Changes in Net Assets

For the year ended March 31, 2019(1) Type and number of issued shares and treasury sharesYear ended March 31, 2019

Number of sharesat the beginning of the fiscal year

Number of shares increasedin the fiscal year

Number of shares decreasedin the fiscal year

Number of sharesat the end of the fiscal year

655,000,000——

655,000,000

32,802,460

10,366,001

126,770

43,041,691

Issued shares:
Common stock
Treasury shares:
Common stock

Notes:
1. Treasury shares of common stock increased due to the following reasons:– Purchase of treasury shares based on the resolution made at a board of directors meeting held on May 15, 2018: 9,522,000 shares– Purchase of odd-lot shares: 11,301 shares– Purchase by the BIP (Board Incentive Plan) Trust: 832,700 shares
2. Treasury shares of common stock decreased due to the following reasons:– Exercise of stock option : 121,700 shares– Purchase request of odd-lot shares: 270 shares– Decrease by the BIP Trust: 4,800 shares
3.	The number of treasury shares of common stock includes 827,900 shares of the Company’s treasury share owned by the BIP Trust as of the end of the fiscal year. (0 share as of beginning of the fiscal year.)(2) Subscription rights to shares
Category

Breakdown of subscription rights to shares

The Company

Share subscription rights as stock options

Balance at the end of the fiscal year
¥ millions

112

T&D Holdings INTEGRATED REPORT 2020

¥1,081

(3) Shareholder dividends
a. Shareholder dividends paid
Date of resolution

Type of shares

Amount of shareholder dividends

Shareholder dividends per share¥ millions¥

Record date

Effective dateJune 28, 2018

Ordinary General Meeting of
Shareholders held on June 27, 2018

Common stock¥12,443¥20.0

March 31, 2018

Board of directors meeting held on
November 14, 2018

Common stock¥12,255¥20.0

September 30, 2018 December 7, 2018

Note: T he total amount of shareholder dividends, which based on the resolution made at the board of directors held on November 14, 2018, includes ¥16 million of the dividends for the Company’streasury share owned by the BIP Trust.

b.	Shareholder dividends whose record date was in the fiscal year ended March 31, 2019, while their effective date is in the fiscal year
ending March 31, 2020
Date of resolution

Amount ofshareholder dividends

Type of shares

Shareholder
dividends per share

Underlying assets¥ millions

Ordinary General Meeting of
Shareholders held on June 26, 2019

Common stock¥13,481

Record date

Effective date

March 31, 2019

June 27, 2019¥

Retained earnings¥22.0

Note: T he total amount of shareholder dividends includes ¥18 million of the dividends for the Company’s treasury share owned by the BIP Trust.

For the year ended March 31, 2020

(1) Type and number of issued shares and treasury sharesYear ended March 31, 2020

Number of sharesat the beginning of the fiscal year

Number of shares increasedin the fiscal year

Number of shares decreasedin the fiscal year

Number of sharesat the end of the fiscal year

655,000,000—

22,000,000

633,000,000

43,041,691

11,481,980

22,212,230

32,311,441

Issued shares:
Common stock
Treasury shares:
Common stock

Notes:
1. Issued shares of common stock decreased due to the following reason:– Retirement of treasury shares based on the resolution made at a board of directors meeting held on November 14, 2019: 22,000,000 shares
2. Treasury shares of common stock increased due to the following reasons:– Purchase of treasury shares based on the resolution made at a board of directors meeting held on May 15, 2019: 11,469,900 shares– Purchase of odd-lot shares: 12,080 shares
3. Treasury shares of common stock decreased due to the following reasons:– Retirement of treasury shares based on the resolution made at a board of directors meeting held on November 14, 2019: 22,000,000 shares– Exercise of stock option : 182,200 shares– Purchase request of odd-lot shares: 530 shares– Decrease by the BIP Trust: 29,500 shares
4.	The number of treasury shares of common stock includes 798,400 shares of the Company’s treasury share owned by the BIP Trust as of the end of the fiscal year. (827,900 share as of beginning of the
fiscal year.)(2) Subscription rights to shares
Category

The Company

Breakdown of subscription rights to shares

Balance at the end of the fiscal year

Share subscription rights as stock options¥ millions

US$ thousands¥876$8,052(3) Shareholder dividends
a. Shareholder dividends paid
Date of resolution

Type of shares

Amount of shareholder dividends

Shareholder dividends per share¥ millions

US$ thousands¥

US$

Record date

Effective dateJune 27, 2019

Ordinary General Meeting of
Shareholders held on June 26 2019

Common stock¥13,481$123,874

¥22.0

$0.20

March 31, 2019

Board of directors meeting held on
November 14, 2019

Common stock¥13,232$121,591

¥22.0

$0.20

September 30, 2019 December 6, 2019

Notes:
1.	The total amount of shareholder dividends, which based on the resolution made at the ordinary general meeting of shareholders held on June 26, 2019, includes ¥18 million of the dividends for theCompany’s treasury share owned by the BIP Trust.
2.	The total amount of shareholder dividends, which based on the resolution made at the board of directors held on November 14, 2019, includes ¥17 million of the dividends for the Company’s treasury
share owned by the BIP Trust.

T&D Holdings INTEGRATED REPORT 2020113

Corporate Datab.	Shareholder dividends whose record date is in the fiscal year ended March 31, 2020, while their effective date is in the fiscal year
ending March 31, 2021
Date of resolution

Amount ofshareholder dividends

Type of shares

Ordinary General Meeting of
Shareholders held on June 25, 2020

Common stock¥ millions

US$ thousands¥13,232$121,590

Underlying
assetsRetainedearnings

Shareholder
dividends per share
¥

US$

¥22.0

$0.20

Record date

Effective date

March 31, 2020 June 26, 2020

Notes:
1. It is planned to submit the bill to the ordinary general meeting of shareholders scheduled to be held on June 25, 2020.
2. The total amount of shareholder dividends includes ¥17 million of the dividends for the Company’s treasury share owned by the BIP Trust.

Note 19

Consolidated Statement of Cash FlowsThe following table provides a reconciliation of cash and cash equivalents in the consolidated statement of cash flows to cash and cash
deposits as stated in the consolidated balance sheet.
¥ millions

US$ thousands

2019

2020

2020

¥ 824,241¥ 861,770$ 7,918,501

Less: deposits with an original maturity of more than three months(4,910)(10,210)(93,816)

Call loans

1,037

35,669327,749

As of March 31,

Cash and deposits

Monetary claims purchased

126,905

135,3131,243,348

Less: monetary claims purchased other than cash equivalents(101,905)(115,313)(1,059,578)

Monetary trusts

765,481970,622

8,918,704

Less: monetary trusts other than cash equivalents(756,791)(959,911)(8,820,287)

Cash and cash equivalents¥ 854,057¥ 917,940$ 8,434,623

Note 20

Lease Transactions[As lessee](1) Finance leases
a. Ownership-transfer finance leases(i) Details of lease assets
		– Intangible fixed assets: software(ii) Depreciation method for lease assets
		The same depreciation method applied to self-owned fixed assets is applied.

b. Non-ownership-transfer finance leases(i) Details of lease assets
		– Tangible fixed assets: office appliances such as computer servers

		– Intangible fixed assets: software(ii) Depreciation method for lease assets		Straight-line method over the lease period is applied.

(2) Operating leases
Future lease payments under non-cancellable operating leases are as follows:¥ millions

US$ thousands

2019

2020

2020

Due within one year

¥3

¥5

$50

Due after one year

1

4

39

Total

¥5

¥9

$89

As of March 31,

114

T&D Holdings INTEGRATED REPORT 2020

[As lessor](1) Details of Lease investment assets
Other assets¥ millions

US$ thousands

2019

2020

2020

Lease income receivables¥39,081¥41,994$385,869

Estimated residual value

83

106

976

(3,115)(3,459)(31,790)¥36,050¥38,640$355,055

As of March 31,

Other:

Interest income
Total lease investment assets(2)	Projected collection amounts of lease income receivables related to lease receivables and lease investment assets
after the consolidated closing dates
Other assets¥ millions

As of March 31, 2019

Lease receivables

Lease investment assets

Due within one year

¥1,759¥9,436

Due after one year through two years

1,441

8,016

Due after two years through three years

1,110

6,672

Due after three years through four years

850

5,277

Due after four years through five years

614

3,924

Due after five years

1,052

5,754

As of March 31, 2020

Lease receivables

Lease investment assets

Lease receivables

Lease investment assets

Due within one year

¥1,744¥10,041$16,029$92,264Due after one year through two years

1,410

8,687

12,95879,830Due after two years through three years

1,139

7,282

10,473

66,916

Due after three years through four years

894

5,871

8,216

53,954Due after four years through five years

670

4,116

6,160

37,824

1,280

5,994

11,76355,078¥ millions

Due after five years

Note 21

US$ thousands

Tax-Effect Accounting(1) Breakdown of the accrual of deferred tax assets and liabilities by main causes
As of March 31,¥ millions

US$ thousands

2019

2020

2020

Deferred tax assets:¥ 65,736¥ 67,950$ 624,369

Policy reserves

63,91362,278572,256

Net defined benefit liability

29,96829,915274,885

Devaluation losses on securities

14,881

17,911

164,583

Losses on disposal of fixed assets

5,335

5,361

49,263

Provision for bonuses

2,284

2,243

20,610Tax loss carry-forward

1,121

754

6,929

464

609

5,599

12,731

12,757

117,223

Subtotal

196,437

199,781

1,835,721

Valuation allowance(16,179)(18,262)(167,805)

Total deferred tax assets

180,258

181,519

1,667,916(121,175)(99,076)(910,379)(2,599)(2,617)(24,055)

Deferred gain on reduction of carrying amount of real estate

(715)

(709)

(6,517)

Others(857)(1,150)(10,566)

Reserve for price fluctuations

Reserve for possible loan losses
OthersDeferred tax liabilities:
Valuation difference on available-for-sale securities
Accrued dividend income

Total deferred tax liabilities(125,348)(103,553)(951,518)

Net deferred tax assets (liabilities)¥ 54,910¥ 77,965$ 716,398

T&D Holdings INTEGRATED REPORT 2020115

Corporate Data(2)	Breakdown of important differences between the statutory effective tax rate and the corporate tax rate, etc., after
applying tax-effect accounting by main item of the causes
Years ended March 31,

Statutory effective tax rate

2019

2020

28.0%

28.0%

(Adjustments)
Valuation allowance

(0.2)

2.6

Permanent non-deductible items including entertainment expense, etc.

0.4

0.5

Others

0.3

0.0

28.5%

31.1%

Corporate tax rate, etc., after applying tax-effect accounting

Note 22

Financial Instruments(1) Matters related to the condition of financial instruments

within the surrender value of each insurance policy, thus its

a. Policy for handling financial instruments

credit risk is minimal.

T&D Insurance Group’s main business is life insurance busi-

Derivative transactions including stock index futures

ness. The Group underwrites various classes of life insurance

contracts, forward exchange contracts and interest rate swap

and invests the money collected as insurance premiums inagreements are used primarily to hedge price fluctuation

financial assets including securities and loans.

risks of our financial assets, and partially to complement

In order to efficiently invest the insurance premiums trust-

physical assets by, for example, providing a solution to theed to us by the policyholders, the Group’s asset management

time constraint prior to the inclusion of physical assets into

policy aims to build a portfolio which ensures long-term

our portfolio. Accordingly, the Group does not enter into

stable returns considering the characteristics of obligations

those transactions for speculative purposes.

involved in life insurance policies, based on the concept ofStringent risk management is in place for derivative trans-

ERM which integrally manages capital, profit, and risk, and atactions, by clearly defining tolerable allowances in terms of

the same time, paying adequate attention to the soundness

the details, hedged items and trading limits of the transac-

and public nature of the investments.

tions as well as by properly controlling their status.

Derivative financial instruments are used to hedge fluctua-

Hedge accounting is appropriately practiced in interest ratetion risks involved in our investment in financial instruments,

swap agreements for loans and forward exchange contracts

as well as partially complement physical assets.

for foreign currency-denominated assets, under the internal

Furthermore, in order to pursue greater financial sound-rules clearly defining qualifications, applicable types of trans-

ness, the Group has been financing the subordinated-classactions, methods of evaluation of its effectiveness and meth-

capital (bonds and borrowings).

ods of its designation. Effectiveness of hedging is determinedby ratio analysis methodology comparing the movements ofb. Details and risks of financial instruments

fair values of the hedged items and hedging instruments.

Financial assets held by the Group mainly comprise securities
and loans.
Securities include public and corporate bonds, stocks and116

c. Risk management system for financial instruments(i) Overall risk management system

investment trusts offered at home and abroad that are held

The Group, in consideration of the social and public

on a long-term basis for the purpose of investment geared

nature of the life insurance business which is its mainto market prospects to ensure stable returns. These finan-

business, defines precise identification and management

cial instruments are exposed to credit risks of the issuingof risks as one of the crucial management tasks forentities and market risks associated with fluctuations inensuring the soundness and adequacy of management,interest rate, exchange rates and stock prices, as well as

where the Company, as the Group’s holding company,

market liquidity risks.

has developed a “Group Risk Management Policy” which

Loans here include policy loans for policyholders andsets out the basic risk management philosophy withincommercial loans (non-policy loans) provided mainly to

the Group and provides the appropriate risk manage-

domestic businesses and individuals. Commercial loans,ment structure according to the business characteristics

though intended to ensure stable returns, are exposed toand risk profiles of each of the Company including thecredit risks of borrowers’ default. A policy loan is provided

Three Life Insurance Companies.

T&D Holdings INTEGRATED REPORT 2020

As an organizational structure, the Group Risk(iii) Management of credit risk

Management Committee has been established for theCredit risk of the entire portfolio is identified and con-purpose of coordinated management of risks within thetrolled through its quantification by the use of VaRGroup, and has a clear understanding of the status ofbased on an internal rating for individual borrowers.

various risks at each company including the Three Life

Meanwhile, the aggregate amount of investment andInsurance Companies, through reports prepared on a reg-loans is capped by each industry sector or by group ofular or as-needed basis at each company using the unified

companies according to the corresponding risks, where-risk management criteria. Further, the Company provides

by concentration of loans to specific industry sectors or

guidance and advice as appropriate to companies including the Three Life Insurance Companies, to carry out thor-groups of companies is restrained.
(iv) Management of liquidity risk

ough risk management at each company and strengthen

Liquidity risks are managed by ensuring a constant

the Group’s entire risk management system.

amount of liquidity based on the Risk Management

At each of the Three Life Insurance Companies, a

Department’s precise understanding of the latest risk

committee has been established to supervise compa-

information, including the share of highly liquid assets,

ny-wide risk management at an enhanced level, while acash flow situation, trends of the general financial/securi-

mutual check-and-balance system is in place under theties markets and the status of individual financial instru-

internal organizational arrangement including the sep-

ments, as well as by developing a management structure

aration of the investment and loan execution functionthat enables smooth liquidation of assets for financing.

from the administration function within the investment
division, independence of the credit check function andd.	Supplementary notes concerning the matters related to fair

implementation of the internal audits by the Internal

value, etc., of financial instruments

Auditing Department.

Fair value is based on market price or rationally estimated fair

Furthermore, the Group has established the ERM committee to manage risks integrally with profit and capitalvalue if the market price is not readily available.
Estimation of fair value requires the use of certain assump-on an economic value basis. Through the promotion andtions, etc. Therefore, the use of different assumptions, etc.

enhancement of ERM, the Group aims for steady andmay lead to a different value.

sustainable growth in its corporate value.
(ii) Management of market risk

In addition, notional amounts of derivative financial
instruments shown in “(2) Matters related to fair value,

Market risks are properly controlled according to theetc., of financial instruments” do not represent exposure torisk characteristic of each asset based on a precise

market risks.

understanding of the sensitivity of investment assets
to parameters reflecting changes in the investment
environment, including interest rate, stock prices andexchange rates, as well as by reviewing asset allocation
and risk hedging based on identification of the overallrisk of the portfolio using the Value at Risk criterion(hereafter referred to as “VaR”).

T&D Holdings INTEGRATED REPORT 2020

117

Corporate Data

(2) Matters related to fair value, etc., of financial instruments
The following tables show consolidated balance sheet amounts, fair values and differences. Financial instruments deemed extremely
difficult to determine fair value are not included. (See Annotation 2.)¥ millions

As of March 31, 2019

Cash and deposits

Consolidatedbalance sheet amount¥Treated as securities

824,241¥

Fair value

Difference

824,241¥—

33,00033,000—33,00033,000—

Others791,241

791,241—

Call loans

1,037

1,037

—

Monetary claims purchased

126,905

129,326

2,421

Treated as securities

125,789

128,0412,251

Held-to-maturity bonds

33,18235,4342,251

Available-for-sale securities

92,60792,607

—

1,115

1,284

169
65,963Available-for-sale securities

OthersMonetary trusts

765,481

831,445

Monetary trusts for trading purposes

5,161

5,161

—

Monetary trusts for held-to-maturity purposes

29,86731,357

1,490

Monetary trusts for policy reserve-matching purposes

669,708

734,182

64,473

Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes

60,74460,744—

11,547,017

12,327,376

780,359

50,20450,204—

Held-to-maturity bonds

1,235,192

1,453,594

218,402

Policy reserve-matching bonds

3,152,683

3,714,640

561,957

Available-for-sale securities

7,108,936

7,108,936—

1,668,798

1,722,734

53,935

118,989

132,528

13,5471,550,999

1,590,205

40,388

Securities
Trading securities

Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets
Short-term debentures(1,190)——14,933,480

15,836,160

902,680

6,000

6,000

—

Bonds

117,035

117,704

669

Cash collateral received for bond-lending transactions within other liabilities

161,672

161,672—

Borrowings within other liabilities

45,64445,766

121

330,352

331,143

791

Hedge accounting not applied

11,942

11,942—Hedge accounting applied

7,804

8,676

872

Total liabilities
Derivative financial instruments*3:

Total derivative financial instruments¥

19,747¥

20,619

*1. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*2. Reserve for possible loan losses for loans is deducted.
*3. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.

118

T&D Holdings INTEGRATED REPORT 2020¥872

¥ millions

As of March 31, 2020

Cash and deposits

Consolidatedbalance sheet amount¥861,770¥

65,500Treated as securities

Fair value

Difference

861,770¥—

65,500—65,50065,500—

Others796,270796,270—

Call loans

35,66935,669—

Monetary claims purchased

135,313

137,600

2,286

Treated as securities

131,756

133,905

2,148

Held-to-maturity bonds

49,186

51,3352,148

Available-for-sale securities

82,57082,570

—

3,557

3,694

137

970,622

1,059,719

89,096

5,173

5,173

—

Available-for-sale securities

OthersMonetary trusts
Monetary trusts for trading purposes
Monetary trusts for held-to-maturity purposes

30,022

31,767

1,745

Monetary trusts for policy reserve-matching purposes

615,739703,09087,351

319,687

319,687—

11,800,219

12,520,770

720,550

26,41926,419—Held-to-maturity bonds

1,048,128

1,251,165

203,036

Policy reserve-matching bonds

3,674,053

4,191,567

517,514

Available-for-sale securities

7,051,617

7,051,617—

1,696,347

1,738,682

42,334

Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes
Securities
Trading securities

Loans
Policy loans*1
Commercial loans*1
Reserve for possible loan losses*2
Total assets
Short-term debentures

126,925

140,550

13,633

1,570,613

1,598,132

28,701(1,191)——

15,499,943

16,354,212

854,269

5,999

5,999

—
(537)

Bonds

187,005

186,467

Cash collateral received for bond-lending transactions within other liabilities

389,338

389,338—

Borrowings within other liabilities

48,95748,98629

631,300

630,792(508)

Hedge accounting not applied

16,997

16,997—

Hedge accounting applied(8,141)(7,494)646

Total liabilities
Derivative financial instruments*3:

Total derivative financial instruments

¥

8,856

¥

9,502

¥

646

*1. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*2. Reserve for possible loan losses for loans is deducted.
*3. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.

T&D Holdings INTEGRATED REPORT 2020

119Corporate Data

US$ thousands

Consolidatedbalance sheet amount

As of March 31, 2020$

Cash and deposits

7,918,501

Fair value$

601,856

Treated as securities

7,918,501

Difference$—

601,856—

601,856

601,856—

Others7,316,645

7,316,645—

Call loans

327,749

327,749—

Monetary claims purchased

1,243,348

1,264,358

21,009Treated as securities

1,210,663

1,230,407

19,744

Held-to-maturity bonds

451,955

471,699

19,744

Available-for-sale securities

758,707758,707—

32,68533,9501,265

8,918,704

9,737,384

818,679

47,53547,535—

Available-for-sale securities

OthersMonetary trusts
Monetary trusts for trading purposes
Monetary trusts for held-to-maturity purposes
Monetary trusts for policy reserve-matching purposes

275,864

291,900

16,0355,657,807

6,460,451

802,6442,937,496

2,937,496—

108,428,002

115,048,886

6,620,883

242,757

242,757—

Held-to-maturity bonds

9,630,879

11,496,511

1,865,632

Policy reserve-matching bonds

33,759,566

38,514,817

4,755,251

Available-for-sale securities

64,794,798

64,794,798—

15,587,134

15,976,135

389,000

Monetary trusts for other than trading, held-to-maturity or policy reserve-matching purposes
Securities
Trading securities

Loans
Policy loans*1

1,166,275

1,291,467

125,273

Commercial loans*1

14,431,806

14,684,667

263,727

Reserve for possible loan losses*2
Total assets
Short-term debentures(10,948)——

142,423,441

150,273,015

7,849,574

55,12555,125—(4,936)

Bonds

1,718,322

1,713,386

Cash collateral received for bond-lending transactions within other liabilities

3,577,493

3,577,493—

449,854450,121266

5,800,795

5,796,126(4,669)Hedge accounting not applied

156,184

156,184—

Hedge accounting applied(74,807)(68,868)

5,938

Borrowings within other liabilities
Total liabilities
Derivative financial instruments*3:

Total derivative financial instruments$

81,376$87,315$5,938*1. Difference indicates the difference between the amount after deducting the reserve for possible loan losses recorded in the consolidated balance sheet and its current fair value.
*2. Reserve for possible loan losses for loans is deducted.
*3. Assets and liabilities arising from derivative transactions are shown at net value. In the case of net liabilities, amounts are shown in parentheses.

Annotation 1c.	Monetary claims purchased: Those which are deemed appro-

Matters relating to the calculation method for the fair value ofpriate to treat as securities are recorded in the same way asfinancial instruments as well as securities and derivative transactions.

securities, while others which are deemed appropriate to treat

Assetsas loan receivable are recorded in the same way as loans.

a.	Cash and deposits: mainly recorded in carrying amounts astheir fair values are proximate to the carrying amounts.

d.	Monetary trusts: Monetary trusts which are mainly invested
in securities are recorded in the same way as securities, whileb.	Call loans: recorded in carrying amounts as these are settled

monetary trusts which have similar nature with cash and de-in a short period, thus their fair values are proximate to theposits are recorded in carrying amounts. In addition, currency

carrying amounts.

options and stock index option contracts, etc., are used inmonetary trusts where their fair values are calculated basedon prices quoted by the counterparty financial institutions.

120

T&D Holdings INTEGRATED REPORT 2020

e.	Securities: Fair values of securities are mainly based on their

to consolidated balance sheet amounts less uncollectableprices quoted on the stock exchange concerned, while thoseamounts at the consolidated closing date. These valuesof bonds are based on the statistics for reference publishedare recorded as fair values.

by the Japan Securities Dealers Association or on the prices

However, for compound financial instruments, fair val-

quoted by the underwriting financial institutions. Fair values ofues are based on their prices quoted by the underwriting

investment trusts are based on the published base prices, etc.

financial institutions.

See “Note 23 Securities” for notes related to securities byholding purposes.

Liabilitiesa.	Short-term debentures: Recorded in carrying amounts. Fairf.

Loans:

values are proximate to carrying amounts because these are(i)	Policy loans: Fair value is calculated by discounting thesettled in a short period.

expected future cash flow derived from the repayment
rate based on the past actual repayment performance by
the risk-free rate.

b.	Bonds: Fair values are based on the statistics for reference
published by the Japan Securities Dealers Association or on(ii)	Commercial loans: A variable interest rate loan reflects thethe prices quoted by the underwriting financial institutions ormarket interest rate in a short period. Therefore, it is basi-

calculated by discounting the total of principal and interest

cally recorded at carrying amount as its fair value is proxi-

by risk-free rates weighted by credit risks involved.

mate to the carrying amount unless the borrower’s credit
standing significantly changes after the loan is provided.

c.	Cash collateral received for bond-lending transactions:

Fair value of fixed interest rate loans is calculated by

Recorded in carrying amounts. Fair values are proximate todiscounting the total of principal and interest by risk-freecarrying amounts because these are short-term transactions.

rates weighted by credit risks involved.
For loans to bankrupt companies, loans to effectivelyd.	Borrowings: Fair values are calculated by discounting thebankrupt companies and loans to potentially bankrupt

total of principal and interest by risk-free rates weighted bycompanies, since estimated uncollectable amounts are

credit risks involved.

calculated based on the present value of the estimatedfuture cash flows or estimated amounts recoverable

Derivative transactions: see “Note 25 Derivative Transactions.”

through pledge or guarantee, fair values are proximate

Annotation 2
The balance sheet amounts of financial instruments deemed extremely difficult to determine fair value, which are not included in “e.
Securities” of “Assets” are summarized as follows:¥ millions

As of March 31,615

US$ thousands

2020

2019

¥

1,087

2020

$

9,995

Investments in affiliates¥

Available-for-sale securities

187,750

220,198

Unlisted stocks *1, *2

16,82017,071

156,863

Foreign securities *1, *2, *3

149,110

176,102

1,618,144

Other securities *2, *3

21,81827,023248,313

2,023,321*1. Unlisted stocks are exempt from disclosure of fair value because fair value is considered extremely difficult to obtain due to the lack of market value.
*2. Impairment losses:– For the year ended March 31, 2019: foreign securities of ¥932 million, other securities of ¥200 million and unlisted stocks of ¥0 million.
– For the year ended March 31, 2020: foreign securities of ¥1,390 million [$12,772 thousand], other securities of ¥105 million [$964 thousand] and unlisted stocks of ¥6 million [$56 thousand].
*3. Investment in capital of partnership is exempt from disclosure of fair value because the partnership assets comprise financial instruments deemed extremely difficult to determine fair value such as
unlisted stocks.

T&D Holdings INTEGRATED REPORT 2020121Corporate Data

Annotation 3
Scheduled redemption amounts after the consolidated closing date for monetary claims and fixed-maturity securities are as follows:¥ millions

As of March 31, 2019

Due in one year
or less

Due after one year
through five years¥—

Due after five years
through ten years¥—

Due after ten years

Deposits¥824,100

Call loans

1,037

—

—

¥

—
—

Monetary claims purchased

25,486235

4,293

90,230Government bonds

183,063

290,504

37,863543,846

Municipal bonds

13,495664

3,510

25,844

Corporate bonds

2,600

54,260—96,207

Securities:
Held-to-maturity bonds:

Policy reserve-matching bonds:
Government bonds

8,583

115,110

252,842

1,639,056

Municipal bonds

2,800

14,19336,766160,190

Corporate bonds

16,80099,680110,501

638,100

Foreign securities

—

1,043

19,66912,550388,844

Available-for-sale fixed maturity securities:
Government bonds—

90,39052,566

Municipal bonds

42,684

17,397

21,601

16,006

Corporate bonds

122,084

340,245

312,892

199,898

Foreign securities

107,298

830,354

1,092,135

461,693

—

7

1

—

169,024

615,230

536,497

220,338

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥ 1,096,334 million are not included. In addition, loans without contractual maturity dates such as policy loans in the amount of ¥ 129,083
million are not included.

¥ millions

As of March 31, 2020

Due in one year
or less

Due after one year
through five years¥—

Due after five years
through ten years¥—

Due after ten years

Deposits¥861,634

Call loans

35,669

—

—

¥

—
—

Monetary claims purchased

20,132

1,870

1,383

105,881535,875

Securities:
Held-to-maturity bonds:
57,702

237,047

41,589Municipal bonds

—

664

3,120

27,586

Corporate bonds

11,60442,656—

101,214

Foreign securities

—

—

—

4,542

Government bonds

Policy reserve-matching bonds:
3,183

158,950

208,517

1,908,648

Municipal bonds—

14,161

44,974

214,972

Corporate bonds

11,000120,330

149,245769,312

Foreign securities

—

3,444

21,112

11,458Government bonds

11,171

85,56545,030385,748

Municipal bonds

6,119

12,316

21,63016,384

Corporate bonds

91,647313,060

297,606

182,938

Foreign securities

236,968

736,246

892,218

577,428

—

20

2

—

169,722644,052

513,644

227,254

Government bonds

Available-for-sale fixed maturity securities:

Other securities
Loans

122

T&D Holdings INTEGRATED REPORT 2020

US$ thousands

Due in one year
or less

As of March 31, 2020

Due after one year
through five years$—

Due after five years
through ten years$

Due after ten years

Deposits$7,917,249

—

$

—

Call loans

327,749———

Monetary claims purchased

184,993

17,183

12,715

972,908530,205

2,178,148

382,150

4,923,969

Securities:
Held-to-maturity bonds:
Government bonds
Municipal bonds

—

6,104

28,668

253,484

Corporate bonds

106,625

391,955—

930,027

Foreign securities

—

—

—

41,73929,2471,460,534

1,915,988

17,537,884

Policy reserve-matching bonds:
Government bonds
Municipal bonds—

130,127

413,250

1,975,305

Corporate bonds

101,075

1,105,672

1,371,367

7,068,937

Foreign securities—

31,650193,995

105,290102,646786,226

413,7653,544,506

Available-for-sale fixed maturity securities:
Government bonds
Municipal bonds

56,229113,175

198,754

150,551

Corporate bonds

842,1122,876,599

2,734,604

1,680,957

Foreign securities

2,177,419

6,765,103

8,198,275

5,305,786

—

185

23

—

1,559,521

5,917,966

4,719,695

2,088,156

Other securities
Loans* Securities without contractual maturity dates in the amount of ¥ 1,153,825 million [$10,602,094 thousand] are not included. In addition, loans without contractual maturity dates such as policy loans in
the amount of ¥ 143,051 million [$1,314,448 thousand] are not included.

Annotation 4
Scheduled repayment amounts after the consolidated closing date for bonds, borrowings, and other liabilities are as follows:¥ millions

As of March 31, 2019

Due in one year
or less

Short-term debenture

¥

6,000

Bonds

Due after one year
through two years

Due after two years
through three years

Due after three years
through four years

Due after four years
through five years

Due after five years

¥

¥

¥

¥

¥

—

—
30,000

—
—

—
—

—
—

—
87,000Cash collateral received for bond-lendingtransactions within other liabilities

161,672

—

—

—

—

—

Borrowings within other liabilities

11,283

8,113

5,384

3,497

2,237

15,128Due in one year
or less

Due after one year
through two years

Due after two years
through three years

Due after three years
through four years

Due after four years
through five years

Due after five years

¥

¥

¥

¥

¥

¥ millions

As of March 31, 2020¥

Short-term debenture

5,999

—
—

—
—

—
—

—
—

—

Bonds

30,000157,000

Cash collateral received for bond-lendingtransactions within other liabilities

389,338

—

—

—

—

—

Borrowings within other liabilities

10,792

8,063

6,176

4,916

3,546

15,463

Due in one year
or less

Due after one year
through two years

Due after two years
through three years

Due after three years
through four years

Due after four years
through five years

$

$

$

$

US$ thousands

As of March 31, 2020

Short-term debenture
Bonds
Cash collateral received for bond-lendingtransactions within other liabilities
Borrowings within other liabilities$

55,125————Due after five years$—

275,659

—

—

—

—

1,442,616

3,577,493

—

—

—

—

—

99,16474,08856,74945,171

32,591

142,089

T&D Holdings INTEGRATED REPORT 2020123Corporate Data

Note 23

Securities(1) Trading securities¥ millions

As of March 31,

Valuation difference included in earnings (losses) of the consolidated fiscal year

US$ thousands

2019

2020

2020

¥(4,940)¥(10,115)$(92,946)(2) Held-to-maturity bonds¥ millions

As of March 31, 2019

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥1,233,526¥1,452,021¥218,495

Government bonds

1,036,381

1,217,484

181,102

Municipal bonds

43,92652,422

8,496

Corporate bonds

28,897

153,217

182,114

Other securities

33,18235,434

2,251

Total

1,266,708

1,487,455

220,746

1,666

1,573

(93)

1,666

1,573

(93)

1,666

1,573

(93)

¥1,268,374¥1,489,028¥220,653

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds
Government bonds
Total
Grand total

Note: Other securities include beneficiary trust certificates (consolidated balance sheet amount of ¥33,182 million) which are represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2020

Consolidatedbalance sheet amount

Fair value

Difference¥1,040,049¥1,243,100¥203,051

854,917

1,022,633

167,715

Fair value exceeding consolidated balance sheet amount:
Domestic bonds
Government bonds
Municipal bonds

30,75038,976

8,225

Corporate bonds

154,381

181,491

27,110Foreign securities

4,695

4,785

90

Foreign bonds

4,695

4,785

90

Other securities

42,81145,022

2,210

Total

1,087,557

1,292,909

205,351

Fair value not exceeding consolidated balance sheet amount:
3,383

3,278

(104)

Government bonds

1,083

1,019

(64)

Municipal bonds

1,000

993

(6)

Corporate bonds(34)

Domestic bonds

1,300

1,265

Other securities

6,374

6,312

(61)

Total

9,757

9,591

(166)

¥1,097,314¥1,302,500¥205,185

Grand total

124

T&D Holdings INTEGRATED REPORT 2020

US$ thousands

As of March 31, 2020

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:$ 9,556,644$11,422,408$1,865,763

Government bonds

7,855,531

9,396,611

1,541,079

Municipal bonds

282,558

358,138

75,579Corporate bonds

1,418,553

1,667,658

249,104

43,14743,975827

Domestic bonds

Foreign securities
Foreign bonds

43,14743,975827

Other securities

393,383

413,695

20,312

Total

9,993,176

11,880,080

1,886,903

31,08630,127(959)

Government bonds

9,953

9,364

(589)

Municipal bonds

9,188

9,132

(56)

Corporate bonds

11,945

11,630(314)

Other securities

58,57158,003

(567)

Total

89,65888,131(1,527)$10,082,835$11,968,211$1,885,376

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds

Grand total

Note: O ther securities include beneficiary trust certificates (consolidated balance sheet amount of ¥49,186 million [$451,955 thousand]) which are represented as monetary claims purchased in the
consolidated balance sheet.

(3) Policy reserve-matching bonds¥ millions

As of March 31, 2019

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:
Domestic bonds¥3,010,248¥3,574,433¥564,185

Government bonds

1,997,598

2,399,162

401,564

Municipal bonds

197,457

227,815

30,357

Corporate bonds

815,191

947,455

132,263

30,61831,971

1,352

Foreign securities
Foreign bonds

30,61831,971

1,352

3,040,866

3,606,405

565,538

106,240

102,688(3,551)Government bonds

33,21032,729(481)

Municipal bonds

17,32816,469(858)

Corporate bonds

55,70153,489(2,212)Foreign securities

5,577

5,547

(29)

Foreign bonds

5,577

5,547

(29)

Total
Fair value not exceeding consolidated balance sheet amount:
Domestic bonds

Total
Grand total

111,817108,235(3,581)¥3,152,683¥3,714,640¥561,957

T&D Holdings INTEGRATED REPORT 2020

125

Corporate Data

¥ millions

As of March 31, 2020

Consolidatedbalance sheet amount

Fair value

Difference

Fair value exceeding consolidated balance sheet amount:¥3,072,405¥3,595,042¥522,636

Government bonds

1,973,801

2,336,137

362,336

Municipal bonds

217,593

247,806

30,213

Corporate bonds

881,010

1,011,097

130,086

37,02142,993

5,972

Domestic bonds

Foreign securities
Foreign bonds
Total

37,02142,993

5,972

3,109,427

3,638,035

528,608

562,975

551,913(11,062)

326,897

321,116(5,781)

Fair value not exceeding consolidated balance sheet amount:
Domestic bonds
Government bonds
Municipal bonds

57,90656,464(1,442)

Corporate bonds

178,171

174,332(3,839)Foreign securities

1,650

1,618

(31)

Foreign bonds

1,650

1,618

(31)

564,626

553,532(11,094)¥3,674,053¥4,191,567¥517,514

Total
Grand total

US$ thousands

Consolidatedbalance sheet amount

Fair value

Difference$28,231,239$33,033,557$4,802,317

Government bonds

18,136,555

21,465,937

3,329,382

Municipal bonds

1,999,393

2,277,009

277,616

Corporate bonds

8,095,291

9,290,609

1,195,318

As of March 31, 2020

Fair value exceeding consolidated balance sheet amount:
Domestic bonds

Foreign securities

340,175

395,051

54,875

Foreign bonds

340,175

395,051

54,87528,571,415

33,428,608

4,857,193

Total
Fair value not exceeding consolidated balance sheet amount:5,172,981

5,071,333(101,648)

Government bonds

3,003,743

2,950,623(53,120)

Municipal bonds

532,086

518,835(13,251)

Corporate bonds

Domestic bonds

1,637,151

1,601,874(35,276)

Foreign securities

15,16914,875(293)

Foreign bonds

15,16914,875(293)

5,188,150

5,086,208(101,941)$33,759,566$38,514,817$4,755,251

Total
Grand total

126

T&D Holdings INTEGRATED REPORT 2020

(4) Available-for-sale securities¥ millions

As of March 31, 2019

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:
Domestic bonds¥1,640,657¥1,558,632¥ 82,024

Government bonds

393,375

364,191

29,184

Municipal bonds

91,70086,3595,341

Corporate bonds

1,155,581

1,108,082

47,499Domestic equities

613,820

366,806

247,013

Foreign securities

2,761,123

2,628,793

132,330

Foreign bonds

1,691,049

1,605,881

85,168Foreign equities

2

1

0

1,070,071

1,022,910

47,161

Foreign other securities
Other securities

242,924

211,237

31,686

Total

5,258,526

4,765,470

493,055

Consolidated balance sheet amount not exceeding acquisition cost:
Domestic bonds

394,703407,473(12,770)

Government bonds

205,167

211,926(6,759)Municipal bonds

10,937

11,601(663)

Corporate bonds

178,598

183,945(5,347)

Domestic equities

105,693

117,426(11,733)

Foreign securities

1,277,237

1,329,233(51,995)

Foreign bonds

1,014,024

1,059,768(45,744)

Foreign equities

16,811

17,472(661)

Foreign other securities

246,402

251,993(5,590)

Other securities

198,383

204,238(5,854)

Total

1,976,017

2,058,372(82,354)

Grand total¥7,234,544¥6,823,842¥410,701

Note: Other securities include certificates of deposit (consolidated balance sheet amount of ¥33,000 million) which are represented as cash and deposits, commercial paper (consolidated balance sheet amountof ¥24,999 million) and beneficiary trust certificates (consolidated balance sheet amount of ¥67,607 million) which are represented as monetary claims purchased in the consolidated balance sheet.

¥ millions

As of March 31, 2020

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:¥1,534,867¥1,460,004¥ 74,863

Government bonds

381,231358,037

23,194

Municipal bonds

49,07844,4864,592

Corporate bonds

1,104,557

1,057,480

47,077

Domestic bonds

Domestic equities

353,924

187,850

166,074

Foreign securities

2,842,046

2,652,532

189,513

Foreign bonds

2,261,281

2,095,946

165,335

Foreign equities

1

1

0

580,762556,584

24,178Foreign other securities
Other securities

170,451

146,749

23,702

Total

4,901,290

4,447,136

454,154

Consolidated balance sheet amount not exceeding acquisition cost:
445,938

455,536(9,597)

Government bonds

205,266

211,051(5,785)

Municipal bonds

11,76012,258(498)

Corporate bonds

228,912232,226(3,314)

Domestic bonds

Domestic equities

230,175

264,750(34,574)

Foreign securities

1,343,406

1,419,373(75,966)

Foreign bonds

508,957

538,162(29,204)

Foreign equities

17,236

19,175(1,939)Foreign other securities

817,212862,035(44,822)

Other securities

278,876

300,555(21,679)

Total

2,298,397

2,440,215(141,818)Grand total¥7,199,688¥6,887,352¥ 312,335

T&D Holdings INTEGRATED REPORT 2020127

Corporate Data

US$ thousands

As of March 31, 2020

Consolidatedbalance sheet amount

Acquisition cost

Difference

Consolidated balance sheet amount exceeding acquisition cost:$14,103,351$13,415,458

Government bonds

3,503,001

3,289,879

Municipal bonds

450,965

408,771

42,194

Corporate bonds

10,149,384

9,716,807

432,577

Domestic bonds$

687,893
213,121

Domestic equities

3,252,089

1,726,093

1,525,995

Foreign securities

26,114,549

24,373,175

1,741,374

Foreign bonds

20,778,112

19,258,906

1,519,205

Foreign equities

16

15

0

5,336,421

5,114,253

222,168

Foreign other securities
Other securities

1,566,221

1,348,425

217,796

Total

45,036,212

40,863,153

4,173,059

Consolidated balance sheet amount not exceeding acquisition cost:
4,097,571

4,185,760(88,188)

Government bonds

1,886,117

1,939,275(53,158)

Municipal bonds

108,062

112,640(4,577)

Corporate bonds

2,103,391

2,133,844(30,452)(317,694)

Domestic bonds

Domestic equities

2,114,998

2,432,693

Foreign securities

12,344,086

13,042,118(698,032)

Foreign bonds

4,676,632

4,944,985(268,353)

Foreign equities
Foreign other securities

158,382

176,199(17,817)

7,509,071

7,920,933(411,861)

Other securities

2,562,494

2,761,701(199,207)

Total

21,119,150

22,422,273(1,303,122)Grand total$66,155,362$63,285,426$ 2,869,936

Note: O ther securities include certificates of deposit (consolidated balance sheet amount of ¥65,500 million [$601,856 thousand]) which are represented as cash and deposits, commercial paper (consolidated balance sheet amount of ¥19,999 million [$183,770 thousand]) and beneficiary trust certificates (consolidated balance sheet amount of ¥62,570 million [$574,937 thousand]) which are
represented as monetary claims purchased in the consolidated balance sheet.

(5) Sales of securities classified as held-to-maturity bonds– There were no sales of securities classified as held-to-maturity bonds for the year ended March 31, 2019.
– There were no sales of securities classified as held-to-maturity bonds for the year ended March 31, 2020.

128

T&D Holdings INTEGRATED REPORT 2020

(6) Sales of securities classified as policy reserve-matching bonds¥ millions

Year ended March 31, 2019

Domestic bonds

Proceeds of sales

Gross gains

Gross losses¥9¥44,933¥3,125Government bonds

38,1212,621

9Municipal bonds

1,473

107

—

Corporate bonds
Total

5,338

396

—

¥44,933¥3,125¥9

Proceeds of sales

Gross gains

Gross losses¥ 0¥ millions

Year ended March 31, 2020

¥121,570¥24,465

Government bonds

118,403

24,0040

Corporate bonds

3,166

460

—

¥121,570¥24,465¥ 0

Proceeds of sales

Gross gains

Gross losses$1,117,066$224,802$ 0

Government bonds

1,087,967

220,568

0

Corporate bonds

29,0994,233—$1,117,066$224,802$ 0

Proceeds of sales

Gross gains

Gross losses¥116,947¥24,489

79,976

15,559—Municipal bonds

9,757

2,181

—

Corporate bonds

27,213

6,748

1

Domestic equities

71,54133,881173

Foreign securities

691,627

16,411

16,708Foreign bonds

592,996

6,399

14,647

Foreign equities

8,983

1,136

4

Foreign other securities

89,647

8,875

2,056

Domestic bonds

Total

US$ thousands

Year ended March 31, 2020

Domestic bonds

Total(7) Sales of securities classified as available-for-sale securities¥ millions

Year ended March 31, 2019

Domestic bonds
Government bonds¥

1

Other securities

45,278

10,9900

Total¥925,395¥85,772¥16,884

Proceeds of sales

Gross gains

Gross losses¥ 43,233¥ 8,244

5,206

761

¥ millions

Year ended March 31, 2020

Domestic bonds
Government bonds¥

0—

Corporate bonds

38,026

7,482

0

Domestic equities

48,039

8,756

7,564

Foreign securities

617,71224,064

17,265

Foreign bonds

542,889

18,541

12,462Foreign equities

307

5

4

74,515

5,517

4,798

Foreign other securities
Other securities

24,395

1,633

2,676

Total

¥733,381¥42,697¥27,507

T&D Holdings INTEGRATED REPORT 2020129Corporate Data

US$ thousands

Year ended March 31, 2020

Domestic bonds
Government bonds

Proceeds of sales

Gross gains

Gross losses$ 397,259$ 75,754$

47,8436,997

0—

Corporate bonds

349,415

68,7570

Domestic equities

441,41780,456

69,512Foreign securities

5,675,941

221,116

158,649

Foreign bonds

4,988,417

170,367

114,509

Foreign equities

2,826

47

45

684,697

50,70044,095

Foreign other securities
Other securities

224,159

15,005

24,594

Total$6,738,777$392,332$252,756(8) Impairment of securities
The Company and its consolidated subsidiaries recognized

for the fiscal years ended March 31, 2019 and 2020, respectively.
The Company and its consolidated subsidiaries recognize im-¥1,996 million and ¥13,379 million [$122,937 thousand] as im-

pairment losses on the securities if fair value as of the end of thepairment losses for the available-for-sale securities with fair value

fiscal year declines by 30% or more from their acquisition cost.

Note 24

Monetary Trusts(1) Monetary trusts for trading purposes¥ millions

US$ thousands

As of March 31,

2019

2020

2020

Valuation difference included in earnings (losses) of the consolidated fiscal year¥840

¥2,125$19,531(2) Monetary trusts for held-to-maturity purposes¥ millions

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥29,867¥31,357¥1,490¥ millions

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥30,022¥31,767¥1,745

US$ thousands

As of March 31, 2020

Monetary trusts

130

T&D Holdings INTEGRATED REPORT 2020

Consolidatedbalance sheet amount

Fair value

Difference$275,864$291,900$16,035

(3) Monetary trusts for policy reserve-matching purposes¥ millions

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥669,708¥734,182¥64,473¥ millions

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference¥615,739¥703,090¥87,351

US$ thousands

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Fair value

Difference$5,657,807$6,460,451$802,644(4) Monetary trusts for those other than trading, held-to-maturity or policy reserve-matching purposes¥ millions

As of March 31, 2019

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference¥60,744¥60,819¥(74)¥ millions

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference¥319,687¥319,114¥573

US$ thousands

As of March 31, 2020

Monetary trusts

Consolidatedbalance sheet amount

Acquisition cost

Difference$2,937,496$2,932,226$5,270T&D Holdings INTEGRATED REPORT 2020131

Corporate Data

Note 25

Derivative Transactions(1) Derivative financial instruments for which hedge accounting is not applied
a. Currency-related transactions¥ millions

Notional amount
As of March 31, 2019

Over-the-counter transactions:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
BoughtU.S. dollar
Euro
Australian dollar
Currency options:
BoughtPut
Euro
Currency swaps:
Receive yen/pay foreign currency
Brazilian real
Indian rupee
Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total

Total

Over one year

Fair value

Valuation gains(losses)¥90,96253,087
15,2004,253
716
17,703
7,442
383
10
7,048

¥—
—
—
—
—
—
—
—
—
—

¥ 84
55
132
(52)
27
(78)
31
0
0
30

¥ 84
55
132
(52)
27
(78)
31
0
0
30

9,657
[20]
9,657
[20]

—
[—]
—
[—]

10

(10)

10

(10)

14,944
9,634
5,310
16,579714
15,864

—
—
—
—
—
—

516
681
(165)
(261)
(5)
(256)

516
681
(165)
(261)
(5)
(256)
¥ 360

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
Currency options are calculated based on prices obtained from counterparty financial institutions.
Currency swaps are carried out using management trusts and the fair value is calculated based on the price obtained from the trustee companies.
2. Assets and liabilities denominated in foreign currencies, which have fixed settlement amounts in yen under forward exchange contracts and are disclosed in yen amounts in the consolidated balance
sheet, are not subject to this disclosure.
3. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.
¥ millions

Notional amount
As of March 31, 2020

Over-the-counter transactions:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
Swiss franc
BoughtU.S. dollar
Euro
British pound
Australian dollar
Currency swaps:
Receive yen/pay foreign currency
Brazilian real
Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total

132

T&D Holdings INTEGRATED REPORT 2020

Total

Over one year

Fair value

Valuation gains(losses)¥186,448
76,32755,724
13,412771
39,537674
29,235
7,869
1,456
3,593
16,316

¥—
—
—
—
—
—

—

¥2,452
(105)
164
475
42
1,880
(4)
(427)
(8)
0
(1)
(417)

¥ 2,452
(105)
164
475
42
1,880
(4)
(427)
(8)
0
(1)
(417)

13,916
13,916
14,252674
13,577

—
—
—
—
—

2,615
2,615
(1,217)0(1,218)

2,615
2,615
(1,217)0(1,218)¥ 3,422———

US$ thousands

Notional amount
As of March 31, 2020

Over-the-counter transactions:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
Swiss franc
BoughtU.S. dollar
Euro
British pound
Australian dollar
Currency swaps:
Receive yen/pay foreign currency
Brazilian real
Receive foreign currency/pay yen
U.S. dollar
Australian dollar
Total

Total

Over one year

Fair value

Valuation gains(losses)$1,713,205
701,344
512,031
123,241
7,090
363,2966,201
268,638
72,30813,38333,016
149,929

$—
—
—
—
—
—

—

$ 22,535
(973)
1,515
4,368
386
17,278(39)(3,927)(78)
7(17)(3,838)$ 22,535
(973)
1,515
4,368
386
17,278(39)(3,927)(78)
7(17)(3,838)

127,874
127,874
130,960
6,199
124,761—————

24,02924,029(11,186)
5(11,192)

24,02924,029(11,186)
5(11,192)$ 31,451———

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
Currency swaps are carried out using management trusts and the fair value is calculated based on the price obtained from the trustee companies.
2. Assets and liabilities denominated in foreign currencies, which have fixed settlement amounts in yen under forward exchange contracts and are disclosed in yen amounts in the consolidated balance
sheet, are not subject to this disclosure.

b. Interest-related transactions¥ millions

Notional amount
As of March 31, 2019

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total

Total

Over one year

Fair value¥16,213¥15,317¥11,561

Valuation gains(losses)¥11,561¥11,561

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or based on prices obtained fromcounterparty financial institutions.
¥ millions

Notional amount
As of March 31, 2020

Over-the-counter transactions:Interest rate swaps:
Receive fixed/pay floating
Total

Total

Over one year

Fair value¥12,969¥12,235¥14,653

Valuation gains(losses)¥14,653¥14,653
US$ thousands

Notional amount
As of March 31, 2020

Over-the-counter transactions:Interest rate swaps:
Receive fixed, pay floating
Total

Total

Over one year

Fair value$119,168$112,429$134,646

Valuation gains(losses)$134,646$134,646

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or based on prices obtained fromcounterparty financial institutions.

T&D Holdings INTEGRATED REPORT 2020133

Corporate Data

c. Stock-related transactions¥ millions

Notional amount
As of March 31, 2019

Total

Over one year

¥10,381

¥—

[34]

[—]

Fair value

Valuation gains(losses)Market transactions:
Stock index options:
Bought:
Put

0

Total

(33)
¥(33)

Notes:
1. Calculation method of fair value
Fair value is based on final prices at the main exchange or prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.
¥ millions

Notional amount
As of March 31, 2020

Total

Over one year

Fair value

Valuation gains(losses)¥29,721¥—(2,070)(2,070)¥36,135

¥—

[948]

[—]

Market transactions:
Stock index futures:
Sold:
Stock index options:
Bought:
Put

992

43
¥(2,027)

Total

US$ thousands

Notional amount
As of March 31, 2020

Total

Over one year

Fair value

Valuation gains(losses)$273,095$—(19,029)(19,029)$332,031$—[8,716][—]

Market transactions:
Stock index futures:
Sold:
Stock index options:
Bought:Put
Total
Notes:
1. Calculation method of fair value
Fair value is based on final prices at the main exchange or prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

134

T&D Holdings INTEGRATED REPORT 2020

9,115

399
$(18,630)

T&D Financial Life uses monetary trusts to execute derivative transactions. The following tables show a summary of the notional amountand fair value of derivative financial instruments.
¥ millions

Notional amount
As of March 31, 2019

Total

Over one year

1,985

1,438

[505]

[371]

1,128

786

[313]

[223]

857

652

[192]

[148]

32

10

Fair value

Valuation gains(losses)

147

(357)

89

(223)

58

(133)

31

21

Over-the-counter transactions:
Currency-related transactions:
Currency options:
Bought:Put
U.S. dollar
Euro
Stock-related transactions:
Stock index options:
Bought:
Call
Put

[10]

[2]

10,321

2,845[2,646]

[604]

190

Total

(2,456)¥(2,792)

Notes:
1. Calculation method of fair value
Fair value is based on prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.
¥ millions

Notional amount
As of March 31, 2020

Total

Over one year

1,438

1,114

[371]

[294]

786

634

[223]

[182]

652

480

[148]

[111]

Fair value

Valuation gains(losses)

107

(264)

53

(170)

53

(94)

9

6

Over-the-counter transactions:
Currency-related transactions:
Currency options:
Bought:Put
U.S. dollar
Euro
Stock-related transactions:
Stock index options:
Bought:
Call
Put
Total

10

—

[2]

[—]

2,845

2,257

[604]

[486]

247

(357)
¥(614)

T&D Holdings INTEGRATED REPORT 2020135Corporate Data

US$ thousands

Notional amount
As of March 31, 2020

Total

Over one year

13,216

10,241[3,416][2,702]

7,225

5,825

[2,055][1,678]

5,991

4,415

[1,361][1,024]

Fair value

Valuation gains(losses)985(2,431)490(1,564)

494

(867)

89

64

Over-the-counter transactions:
Currency-related transactions:
Currency options:
Bought:Put
U.S. dollar
Euro
Stock-related transactions:
Stock index options:
Bought:
91

—

[25]

[—]

26,14920,739[5,553][4,468]

Call
Put

2,272

(3,281)$(5,648)

Total
Notes:
1. Calculation method of fair value
Fair value is based on prices obtained from counterparty financial institutions.
2. Figures in square brackets for “Notional amount” represent option premiums that are reported on the consolidated balance sheet.

(2) Derivative financial instruments for which hedge accounting is applied
a. Currency-related transactions¥ millions

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold

Foreign currencydenominated assets

U.S. dollar¥3,352,034¥—¥ 7,785

2,247,783—(9,394)

Euro729,658—

15,119British pound

146,229—

667

Canadian dollar

97,428—(98)

Australian dollar

114,012—

1,352

New Zealand dollar

14,027—

136

Polish zloty

767

—

1

Danish krone

1,644

—

2

Singapore dollar

483

—

(1)

227,620—

178

227,620—

178

BoughtU.S. dollar
Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:
Sold

Certificates of deposit inforeign currencies

40,000——U.S. dollar

10,000——Australian dollar

30,000——37,93737,937—37,93737,937

Currency swaps:
Receive yen/pay foreign currency
U.S. dollar
Total

Foreign currencydenominated loans—¥ 7,964

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
2. Fair value of foreign exchange contracts, etc., with allocation treatments are included in the relevant certificates of deposit in foreign currencies and foreign currency-denominated loans because they are
the hedged assets for each of these contracts and the assets are treated as a unit.

136

T&D Holdings INTEGRATED REPORT 2020

¥ millions

Notional amount
As of March 31, 2020

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
New Zealand dollar
Polish zloty
Danish krone
Singapore dollar
BoughtU.S. dollar
Euro
British pound
Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:
Sold
Australian dollar
BoughtU.S. dollar
Currency swaps:
Receive yen/pay foreign currency
U.S. dollar
Total

Hedged item

Foreign currencydenominated assets

Certificates of deposit inforeign currencies
Foreign currencydenominated stocks(forecasted transaction)
Foreign currencydenominated loans

Total

Over one year

¥3,649,756
2,480,429
902,558
116,819
82,76859,631
5,101
383
1,565
498
347,374
265,672
81,234467¥

Fair value

—
—
—
—
—
—
—
—
—
—
—
—
—
—

¥ (9,804)(22,802)
3,600
1,664
4,970
2,707
6
24
7
16
1,040
987
54
(1)

37,00037,00062,54362,543

—
—
—
—

—
—
653
653

37,93737,93737,93737,937——¥ (8,109)
US$ thousands

Notional amount
As of March 31, 2020

Recognition of valuation gains/losses on hedged items:
Foreign exchange contracts:
Sold
U.S. dollar
Euro
British pound
Canadian dollar
Australian dollar
New Zealand dollar
Polish zloty
Danish krone
Singapore dollar
BoughtU.S. dollar
Euro
British pound
Allocation treatment for foreign exchange contracts, etc.:
Foreign exchange contracts:
Sold
Australian dollar
BoughtU.S. dollar
Currency swaps:
Receive yen/pay foreign currency
U.S. dollar
Total

Hedged item

Foreign currencydenominated assets

Certificates of deposit inforeign currencies
Foreign currencydenominated stocks(forecasted transaction)
Foreign currencydenominated loans

Total$33,536,310
22,791,781
8,293,289
1,073,408
760,531547,936
46,871
3,522
14,3884,581
3,191,898
2,441,166
746,435
4,296Over one year¥

Fair value

—
—
—
—
—
—
—
—
—
—
—
—
—
—

$ (90,086)(209,523)
33,084
15,29645,66824,875
60
226
70
153
9,564
9,073
500
(9)

339,979
339,979
574,687
574,687

—
—
—
—

—
—
6,003
6,003

348,593
348,593

348,593
348,593——$ (74,518)

Notes:
1. Calculation method of fair value
Forward exchange rates are used for the consolidated fiscal year-end foreign exchange rates.
2. Fair value of foreign exchange contracts, etc., with allocation treatments (except for the contracts hedging the forecasted transaction) are included in the relevant certificates of deposit in foreign currencies and foreign currency-denominated loans because they are the hedged assets for each of these contracts and the assets are treated as a unit.

T&D Holdings INTEGRATED REPORT 2020137Corporate Datab. Interest-related transactions¥ millions

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value¥44,987¥33,137¥872

Special treatment for interest rate swaps:
Interest rate swaps:
Loans

Receive fixed/pay floating
Total

¥872

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or prices obtained from counterparty
financial institutions.

¥ millions

Notional amount
As of March 31, 2020

Hedged item

Total

Over one year

Fair value¥32,731¥26,584¥646

Special treatment for interest rate swaps:
Interest rate swaps:
Loans

Receive fixed/pay floating

¥646

Total

US$ thousands

Notional amount
As of March 31, 2020

Hedged item

Total

Over one year

Fair value$300,755$244,270$5,938Special treatment for interest rate swaps:
Interest rate swaps:
Loans

Receive fixed/pay floating$5,938Total

Note: Calculation method of fair value
Fair value of interest rate swaps is calculated by discounting future cash flows to the present value based on the interest rate at the consolidated fiscal year-end or prices obtained from counterparty
financial institutions.

c. Stock-related transactions¥ millions

Notional amount
As of March 31, 2019

Hedged item

Total

Over one year

Fair value¥44,614¥—¥(160)

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Domestic equities

Sold
Total

¥(160)

Note: Calculation method of fair value
Fair value is calculated based on prices obtained from counterparty financial institutions.

¥ millions

Notional amount
As of March 31, 2020

Hedged item

Total

Over one year

Fair value¥8,235¥—¥(31)

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Domestic equities

Sold

¥(31)

Total

US$ thousands

Notional amount
As of March 31, 2020

Hedged item

Total

Over one year

Fair value$75,671$—$(288)

Recognition of valuation gains/losses on hedged items:
Forward contracts:
Sold
Total
Note: Calculation method of fair value
Fair value is calculated based on prices obtained from counterparty financial institutions.

138

T&D Holdings INTEGRATED REPORT 2020

Domestic equities$(288)

Note 26

Employees’ Retirement Benefits(1) Overview of the retirement benefit plan adopted by the T&D Insurance Group
Domestic consolidated subsidiaries have defined benefit retirement plans such as a defined benefit corporate pension plan, a retirement
pension plan, and a retirement lump-sum payment plan. Further, certain subsidiaries have defined contribution pension plans as theirdefined contribution retirement plan as well as retirement benefit trusts.

(2) Defined benefit retirement plana. Reconciliations of the beginning- and end-of-the-year balances of retirement benefit obligations are as follows:¥ millions

US$ thousands

2019

2020

2020

¥154,239¥157,101$1,443,545

Service cost

6,361

6,551

60,197

Interest cost

800

633

5,817

Actuarial gains and losses

3,136

(840)

(7,721)Retirement benefit paid

Years ended March 31,

Balance at the beginning of the year

(7,437)(6,833)(62,792)

Accrual of past service costs

—

83

766

Balance at the end of the year

¥157,101¥156,694$1,439,814¥ millions

US$ thousands

Note: Retirement benefit expense for consolidated subsidiaries using the simplified method is recorded in service cost.

b. Reconciliations of the beginning- and end-of-the-year balances of pension plan assets are as follows:
Years ended March 31,

Balance at the beginning of the year

2019

2020

2020

¥103,475¥106,062$974,569

Expected return on plan assets

1,121

903

8,302

Net actuarial gains and losses

1,154(1,508)(13,862)

Employer contribution

6,000

7,281

66,910Benefit obligation paid

(5,688)(5,200)(47,782)¥106,062¥107,538$988,135

Balance at the end of the yearc.	Reconciliations of retirement benefit obligations and pension plan assets to net defined benefit liabilities and net defined benefit
assets stated in the consolidated balance sheet are as follows:¥ millions

US$ thousands

2019

2020

2020

Retirement benefit obligations for funded plans¥ 130,463¥ 129,894$1,193,554

Plan assets(106,062)(107,538)(988,135)[(63,321)][(64,580)][(593,406)]

As of March 31,

Employee pension trusts

24,40022,355

205,418

Retirement benefit obligations for unfunded plans

26,63726,800246,259

Net amount of defined benefit liability and defined benefit asset stated in the consolidated balance sheet

51,03849,156451,678

51,03849,156451,678———¥ 51,038¥ 49,156$ 451,678¥ millions

US$ thousands

Defined benefit liability
Defined benefit asset
Net amount of defined benefit liability and defined benefit asset stated in the consolidated balance sheetd. Components of retirement benefit expense are as follows:
Years ended March 31,

Service cost

2019

2020

2020

¥ 6,361¥6,551$60,197

800

633

5,817

Expected return on plan assets(1,121)(903)(8,302)

Recognized actuarial gains and losses

1,982

668

6,141

—

83

766

¥ 8,023¥7,032$64,621

Interest cost

Recognized past service costs
Retirement benefit expense relating to defined benefit retirement plan
Note: Retirement benefit expense for consolidated subsidiaries using the simplified method is included in service cost.

T&D Holdings INTEGRATED REPORT 2020139Corporate Datae. Matters related to pension plan assets(i) Components of pension plan assets are as follows:
2019

2020

Bonds

72.0%

71.9%

General account

11.4%

11.9%

Foreign securities

8.0%

8.3%

Cash and deposits

2.8%

3.9%

Stocks

4.8%

3.3%

Joint assets

0.9%

0.7%

Others

0.0%

0.0%

Total

100.0%

100.0%

As of March 31,

Note: The total includes 59.7% and 60.1% of employee pension trusts set up for corporate pension plans for the fiscal years ended March 31, 2019 and 2020, respectively.

(ii) The setting method for long-term expected rate of return
The long-term expected rate of return on pension plan assets is set by considering the present and the prospective asset allocation of pension plan assets, as well as the present and the expected long-term rate of return arising from various assets thatcomprise the plan assets.
f.

Matters related to actuarial basis
2019

2020

Discount rate

(0.01)% – 0.80%

0.07% – 0.80%

Expected long-term rate of return on plan assets

0.24% – 3.46%

0.10% – 2.13%

Years ended March 31,(3) Defined contribution retirement plan
The required contribution for the defined contribution retirement plan of the Company and its consolidated subsidiaries amounted to¥268 million and ¥272 million [$2,503 thousand] for the fiscal years ended March 31, 2019 and 2020, respectively.

Note 27

Stock Options(1) Amount of expenses related to stock options
There were no operating expenses related to stock options for the fiscal years ended March 31, 2019 and 2020.

(2) Details, size and status of stock options
a. Details of stock options
T&D Holdings, Inc. stock subscription rights (1st series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 7
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 40

Number of stock options by class*Common stock: 449,600 shares

Grant dateJuly 31, 2012

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 1, 2012 to July 31, 2042

* Translated to the number of common stock.

140

T&D Holdings INTEGRATED REPORT 2020

T&D Holdings, Inc. stock subscription rights (2nd series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 7
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 39

Number of stock options by class*Common stock: 235,500 shares

Grant dateAugust 1, 2013

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2013 to August 1, 2043

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (3rd series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 6
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 41

Number of stock options by class*Common stock: 231,300 shares

Grant dateAugust 1, 2014

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2014 to August 1, 2044

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (4th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 15
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 43

Number of stock options by class*Common stock: 170,700 shares

Grant dateAugust 3, 2015

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 4, 2015 to August 3, 2045

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (5th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 10
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 48

Number of stock options by class*Common stock: 379,800 shares

Grant dateAugust 1, 2016

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2016 to August 1, 2046

* Translated to the number of common stock.

T&D Holdings, Inc. stock subscription rights (6th series)

Title and number of grantees

Directors (excluding outside directors) and executive officers of the Company: 10
Directors (excluding outside directors) and executive officers of subsidiaries of the Company: 47

Number of stock options by class*Common stock: 208,200 shares

Grant dateAugust 1, 2017

Conditions for vesting

Stock options are vested on the grant date.

Requisite service period

Not applicable

Exercise period

August 2, 2017 to August 1, 2047

* Translated to the number of common stock.

T&D Holdings INTEGRATED REPORT 2020141Corporate Datab. Size and status of stock options
	For stock options which existed during the consolidated fiscal year ended March 31, 2020, the number of stock options is translated
to the number of common stock.
(i) Number of stock options
T&D Holdings, Inc.
stock subscription rights (1st series)

T&D Holdings, Inc.
stock subscription rights (2nd series)

T&D Holdings, Inc.
stock subscription rights (3rd series)

Before vesting:
At the end of previous fiscal year

—

—

—

Granted———Forfeited———

Vested———Outstanding

—

—

—

157,200 shares

102,600 shares

123,800 shares

—

—

—

30,900 shares

24,100 shares

28,200 shares

After vesting:
At the end of previous fiscal year
VestedExercised
Forfeited
Exercisable

—

—

—

126,300 shares

78,500 shares

95,600 shares

T&D Holdings, Inc.
stock subscription rights (4th series)

T&D Holdings, Inc.
stock subscription rights (5th series)

T&D Holdings, Inc.
stock subscription rights (6th series)

Before vesting:
At the end of previous fiscal year

—

—

—

Granted———Forfeited———

Vested———Outstanding

—

—

—

109,300 shares

270,400 shares

187,700 shares

After vesting:
At the end of previous fiscal year
VestedExercised———

21,100 shares

49,400 shares

28,500 shares

Forfeited
Exercisable

—

—

—

88,200 shares

221,000 shares

159,200 shares

T&D Holdings, Inc.
stock subscription rights (1st series)

T&D Holdings, Inc.
stock subscription rights (2nd series)

T&D Holdings, Inc.
stock subscription rights (3rd series)(ii) Unit price information

Exercise price
Average stock price at the time of exercise
Fair value at the granted date

Exercise price

1 yen

1 yen

1 yen

1,148 yen

1,150 yen

1,149 yen

685 yen

1,143 yen

1,153 yen

T&D Holdings, Inc.
stock subscription rights (4th series)

T&D Holdings, Inc.
stock subscription rights (5th series)

T&D Holdings, Inc.
stock subscription rights (6th series)

1 yen

1 yen

1 yen

Average stock price at the time of exercise

1,151 yen

1,149 yen

1,157 yen

Fair value at the granted date

1,708 yen

918 yen

1,485 yen(3) Method for estimating the number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock
options that will be forfeited in the future.

142

T&D Holdings INTEGRATED REPORT 2020

Note 28

Asset Retirement Obligations

Asset retirement obligations recorded in the consolidated balance sheet are as follows:(1) Overview of the asset retirement obligations
Asbestos removal obligations for office buildings and rental properties are recorded as asset retirement obligations.
(2) Calculation method for the amount of the asset retirement obligations
For the estimation of the present value of asset retirement obligations, 50 years from the acquisition of buildings is used as an estimated period before the cost will accrue and 2.11% as a discount rate.
(3) Increase or decrease of the total amount of the asset retirement obligations¥ millions

Years ended March 31,

Balance at the beginning of the year
Time progress adjustment
Balance at the end of the year

Note 29

US$ thousands

2019

2020

2020

¥1,998¥2,041$18,754

42

43

396

¥2,041¥2,084$19,151

Real Estate for Rent

Some subsidiaries own real estate for rent, consisting mainly of office buildings in major cities in Japan. Their balance sheet amount, net
increase or decrease and fair value at the end of the year are as follows:¥ millions

US$ thousands

2019

2020

2020

¥248,005¥256,235$2,354,456

8,229

13,257

121,814

Balance at the end of the year

256,235

269,492

2,476,270

Fair value at the end of the year

¥335,797¥366,328$3,366,065

Years ended March 31,

Balance sheet amount:
Balance at the beginning of the year
Net increase (decrease)

Notes:
1. Balance sheet amount represents acquisition cost less accumulated depreciation and accumulated impairment losses. Balances at the end of the year for the years ended March 31, 2019 and 2020
include amounts related to asset retirement obligations of ¥79 million and ¥50 million [$462 thousand], respectively.
2. For the year ended March 31, 2019, the increase mainly consisted of purchase of real estate totaling ¥ 13,947 million and the decrease mainly consisted of depreciation totaling ¥5,502 million.
For the year ended March 31, 2020, the increase mainly consisted of purchase of real estate totaling ¥ 18,933 million [$173,971 thousand] and the decrease mainly consisted of depreciation totaling¥5,409 million [$49,703 thousand].
3. Fair value at the end of the year of major properties is calculated based on their appraisal value by external real estate appraisers. The value of other properties is calculated in-house based on the posted price.

Gains (losses) on real estate for rent are as follows:¥ millions

US$ thousands

2019

2020

2020

Ordinary revenues¥17,568¥19,714$181,147

Ordinary expenses

11,926

12,224112,324

Ordinary profit

5,642

7,489

68,822Other gains(losses)

(550)

2,674

24,573Years ended March 31,

Notes:
1. Ordinary revenues and ordinary expenses constitute income from lease and corresponding expenses, such as depreciation, repair expenses, insurance expenses and taxes. These amounts are recorded ininvestment income and investment expenses.
2. For the year ended March 31, 2019, other losses were mainly impairment losses, and these amounts are recorded in extraordinary losses.
For the year ended March 31, 2020, other gains were mainly gains on disposal of fixed assets, and these amounts are recorded in extraordinary gains.

T&D Holdings INTEGRATED REPORT 2020143Corporate Data

Note 30

Segment Information(1) Overview of reportable segments

segments are the Taiyo Life Insurance Company segment, theThe reportable segments of the Company are components of the

Daido Life Insurance Company segment and the T&D Financial

Company for which separate financial information is available.

Life Insurance Company segment.

These segments are subject to regular review by the Company’s

Each of the Three Life Insurance Companies focuses on differ-

Board of Directors to determine the allocation of business re-ent markets. Taiyo Life focuses on the households market, Daido

sources and evaluate business performances.

Life focuses on the SME market and T&D Financial Life focuses

The Company is an insurance holding company which manag-on independent insurance agents market and each company has

es life insurance companies and other subsidiaries in accordance

different products under its unique marketing strategy.

with the Insurance Business Act. Under the Company, the Three
Life Insurance Companies, with unique product strategies and(2)	Method for calculating ordinary revenues, income or loss,

sales strategies, operate life insurance business which is theassets and liabilities, and others by reportable segment
The method for the accounting treatment of the reportable seg-Group’s core business.

ments is the same as described in “Note 2. Summary of Significant

The Company’s operations are therefore segmented by each of

Accounting Policies.”

the life insurance companies and the Company’s three reportable(3) Information on ordinary revenues, income or loss, assets and liabilities, and others by reportable segment¥ millions

Reportable segments

Year ended March 31, 2019

Ordinary revenues

T&D
Financial Life

Taiyo Life

Daido Life¥ 916,451¥1,044,933

1,158

627

—

1,786

59,684

61,471(61,471)—917,610

1,045,561

150,758

2,113,929

92,3012,206,231(66,068)

2,140,162

Intersegment transfers
Total
Segment income (loss)

OthersSubtotal¥ 150,758 ¥ 2,112,143

Total¥ 32,616 ¥ 2,144,759

Adjustments

Amount on
consolidated
financialstatements¥(4,597) ¥ 2,140,162

54,19689,2702,064

145,531

36,478

182,009(35,060)

146,949

Segment assets

7,411,864

6,843,179

1,438,819

15,693,864

976,507

16,670,371(875,659)

15,794,711

Segment liabilities

6,996,551

6,180,746

1,361,498

14,538,796

207,081

14,745,878(110,754)

14,635,123

Depreciation of real estate for rent

3,594

2,653

—

6,247

—

6,247

(28)

6,219

Depreciation

6,787

4,216

256

11,260675

11,935(43)

11,892

Provision for (reversal of) policy reserve

182,709258,111

26,791

467,612180

467,792—

467,792

Provision for (reversal of) reserve forpolicyholder dividends

13,13814,005

027,144—

27,144—

27,144

Interest, dividends and income fromreal estate for rent

Others:143,579

145,486

8,322

297,388

35,299332,688(36,830)

295,858

Interest expenses

934

16

2

953

323

1,277

(369)

907

Equity in earnings (losses) of affiliates

—

—

—

—

—

—

(24)

(24)

Extraordinary gains

152

497

—

650

48

699

—

699

Extraordinary losses

5,522

12,454552

18,52950

18,580918,589Impairment losses

1,574

538

—

2,113

—

2,113

—

2,113

Provision for reserve for pricefluctuations
Taxes
Investments in affiliated companies
Increase in tangible fixed assets andintangible fixed assets

¥

3,606

11,244552

15,402—

15,402—

15,402

10,14017,779500

28,420639

29,0596

29,066

94

365

—

459

—

459

—

459

938 ¥

29,181552 ¥

29,733(124) ¥

29,60814,425¥

13,817¥¥¥

Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:(1) The adjustment of ¥ (4,597 million) to ordinary revenues is the transferred amount which mainly consists of gains from derivatives, net of ¥2,286 million, reversal of provision for retirement benefitsof ¥1,254 million and foreign exchange gains, net of ¥854 million which is included in ordinary expenses of the consolidated statement of operation as losses from derivatives, net, provision for
retirement benefits and foreign exchange losses, net, respectively.
(2) The adjustment of ¥ (35,060 million) to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
(3) The adjustment of ¥ (875,659 million) to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
(4) The adjustment of ¥ (110,754 million) to segment liabilities is mainly due to the elimination of intersegment receivables and payables.
3. Segment income (loss) is adjusted to align with the ordinary profit set forth in the consolidated statement of operation.

144

T&D Holdings INTEGRATED REPORT 2020

¥ millions

Reportable segments

Year ended March 31, 2020

Ordinary revenues
Intersegment transfers
Total
Segment income (loss)
Segment assets
Segment liabilities
Others:Depreciation of real estate for rent
Depreciation
Provision for (reversal of) policy reserve
Provision for (reversal of) reserve forpolicyholder dividends
Interest, dividends and income fromreal estate for rentInterest expenses
Equity in earnings (losses) of affiliates
Extraordinary gains
Extraordinary losses
Impairment losses
Provision for reserve for pricefluctuations
Taxes
Investments in affiliated companies
Increase in tangible fixed assets andintangible fixed assets

T&D
Financial Life

Taiyo Life

Daido Life

¥ 801,020
1,518
802,538
36,7827,660,474
7,269,351¥1,014,602
522
1,015,124
86,157
7,037,507
6,393,649

3,559
6,896
43,4192,618
4,522
214,759—454
172,504

6,177
11,873
430,684

—
687
308

6,177
12,561
430,993

(28)
(64)
—

6,149
12,497
430,993

10,197

11,687(0)

21,883—

21,883—

21,883

149,487
981
—
3,380
4,975
803

143,525
12
—
551
4,254
—

8,274
6
—
—
756
—

301,286
999
—
3,932
9,986
803

42,009
799
—
106
107
—

343,296
1,798
—
4,038
10,093803(43,532)
(771)
(287)
—
0
—

299,763
1,027
(287)
4,038
10,093
803

3,692
9,172
900

3,467
20,315
365

756
424
—

7,916
29,913
1,265

—
426
—

7,916
30,340
1,265

—
3
—

7,916
30,3431,265

1,092 ¥

34,551855 ¥

35,406(105) ¥

35,300

¥

9,173

¥

24,284

Subtotal¥ 354,495 ¥ 2,170,118—
2,040
354,495
2,172,158
2,246
125,185
1,645,401 16,343,383
1,564,466 15,227,468¥

Others

¥

¥

Total

Amount on
consolidated
financialstatements

Adjustments

34,136 ¥ 2,204,255
68,93070,970103,067
2,275,225
41,846167,032
1,122,586 17,465,970
338,287 15,565,755¥¥(6,326) ¥ 2,197,928(70,970)—(77,297)
2,197,928(41,609)125,422(945,832) 16,520,137(168,767) 15,396,987

US$ thousands

Reportable segments

Year ended March 31, 2020

Ordinary revenues
Intersegment transfers
Total
Segment income (loss)
Segment assets
Segment liabilities
Others:Depreciation of real estate for rent
Depreciation
Provision for (reversal of) policy reserve
Provision for (reversal of) reserve forpolicyholder dividends
Interest, dividends and income fromreal estate for rentInterest expenses
Equity in earnings (losses) of affiliates
Extraordinary gains
Extraordinary losses
Impairment losses
Provision for reserve for pricefluctuations
Taxes
Investments in affiliated companies
Increase in tangible fixed assets andintangible fixed assets

T&D
Financial Life

Taiyo Life

Daido Life$ 7,360,291
13,9487,374,239
337,979
70,389,368
66,795,474$ 9,322,821
4,797
9,327,618
791,668
64,665,146
58,748,964

32,71063,374
398,970

24,05541,551
1,973,347—
4,176
1,585,086

56,766109,101
3,957,404

—
6,321
2,837

56,766
115,423
3,960,241

(259)
(592)
—

56,506
114,830
3,960,241

93,698107,387(2)

201,084—

201,084—

201,084

1,373,588
9,017—
31,06545,7157,380

1,318,800
111
—
5,066
39,094—76,028
55
—
—
6,948
—

2,768,417
9,184—
36,13191,7587,380

386,008
7,345
—
976
985
—

3,154,426
16,530—37,10892,7447,380(400,004)(7,084)(2,638)—4—2,754,421
9,445(2,638)37,10892,7487,380

33,93084,286
8,274

31,861
186,675
3,357

6,948
3,900
—

72,740274,862
11,632—
3,922—

72,740278,785
11,632—
27—

72,740278,813
11,632

10,038 $317,477

7,856 $

325,334(970) $

324,364$

84,293$

223,145

Subtotal$ 3,257,332 $ 19,940,445—
18,745
3,257,332
19,959,191
20,6401,150,288
15,119,002 150,173,517
14,375,327 139,919,766$

OthersTotal$

313,669 $ 20,254,115
633,376
652,122
947,046
20,906,237
384,5091,534,798
10,315,043 160,488,560
3,108,401 143,028,167$

Adjustments

Amount on
consolidated
financialstatements$(58,132) $ 20,195,982(652,122)—(710,254) 20,195,982(382,336)
1,152,461(8,690,915) 151,797,644(1,550,747) 141,477,420$

Notes:
1. Ordinary revenues instead of net sales are presented here.
2. Adjustments are as follows:(1) The adjustment of ¥(6,326 million) [$(58,132 thousand)] to ordinary revenues is the transferred amount, which mainly consists of gains from derivatives, net of ¥2,907 million [$26,717 thousand] ofordinary revenues and reversal of provision for retirement benefits of ¥1,820 million [$16,723 thousand] of ordinary revenues which are included in ordinary expenses of the consolidated statement ofoperation as losses from derivatives, net and provision for retirement benefits respectively, and provision for reserve for outstanding claims of ordinary expenses of ¥1,885 million [$17,327 thousand]of ordinary expenses which is included in ordinary revenues of the consolidated statement of operation as reversal of reserve for outstanding claims.
(2) The adjustment of ¥(41,609 million) [$(382,336 thousand)] to segment income (loss) is mainly due to the elimination of dividends from subsidiaries and affiliates.
(3) The adjustment of ¥(945,832 million) [$(8,690,915 thousand)] to segment assets is mainly due to the elimination of investments in stocks of subsidiaries and affiliates.
(4) The adjustment of ¥(168,767 million) [$(1,550,747 thousand)] to segment liabilities is mainly due to the elimination of intersegment receivables and payables.
3. Segment income (loss) is adjusted to align with the ordinary profits set forth in the consolidated statement of operation.

T&D Holdings INTEGRATED REPORT 2020

145Corporate Data

[Related information]
For the year ended March 31, 2019

1. Information by product and service
Sales to external customers¥ millions

Year ended March 31, 2019

Taiyo Life

Daido Life

T&D Financial Life

Others

Total

Income from insurance premiums¥715,120¥828,003¥127,853¥5,206¥1,676,184

Insurance premiums

714,627

826,576

127,7655,206

1,674,175

Individual insurance and individual annuities

606,517

767,359

127,611—1,501,487

Group insurance

29,781

22,211——

51,992

Group annuities

77,13935,936134—

113,210

Others

1,189

1,069

19

5,206

7,485

Ceded reinsurance recoveries

¥

493

¥

1,427

¥

87

¥

—

¥

2,008

Note: Income from insurance premiums instead of net sales is presented here.

2. Information by geographic area
(1) Net sales(2) Tangible fixed assets

Information by geographic area is omitted, as net sales (ordinary

Information by geographic area is omitted, as the amount ofrevenues) to external customers in Japan exceed 90% of net sales

tangible fixed assets in Japan exceeds 90% of the amount of(ordinary revenues) in the consolidated statement of operation.

tangible fixed assets in the consolidated balance sheet.

3. Information by major customer
Information by major customer is omitted, as there are no customers to whom sales exceed 10% of net sales (ordinary revenues) toexternal customers in the consolidated statement of operation.
For the year ended March 31, 2020

1. Information by product and service
Sales to external customers¥ millions

Year ended March 31, 2020

Taiyo Life

Daido Life

T&D Financial Life

Others

Total

Income from insurance premiums¥593,679¥818,070¥335,910¥5,847¥1,753,508

593,475

816,488

323,017

5,847

1,738,828

Individual insurance and individual annuities

493,402760,119

322,833—

1,576,355

Group insurance

27,682

20,622——

48,304

Group annuities

71,232

34,633164—

106,030

Others

1,158

1,112

19

5,847

1,581

¥ 12,893

Taiyo Life

Daido Life

T&D Financial Life

OthersTotal$5,455,111$7,516,957$3,086,564$53,727$16,112,360

Insurance premiums¥

Ceded reinsurance recoveries

204

¥

¥

—

8,137
¥

14,679

US$ thousands

Year ended March 31, 2020

Income from insurance premiums

5,453,232

7,502,422

2,968,092

53,727

15,977,474

4,533,694

6,984,467

2,966,405—

14,484,568

Group insurance

254,360

189,494——443,854

Group annuities

654,532

318,236

1,509—

974,278

Others10,643

10,224

177

53,727

14,535$ 118,472

Insurance premiums
Individual insurance and individual annuities

Ceded reinsurance recoveries
Note: Income from insurance premiums instead of net sales is presented here.

146

T&D Holdings INTEGRATED REPORT 2020

$

1,878

$

$

—

74,772$

134,886

2. Information by geographic area
(1) Net sales(2) Tangible fixed assets

Information by geographic area is omitted, as net sales (ordinary

Information by geographic area is omitted, as the amount ofrevenues) to external customers in Japan exceed 90% of net sales

tangible fixed assets in Japan exceeds 90% of the amount of(ordinary revenues) in the consolidated statement of operation.

tangible fixed assets in the consolidated balance sheet.

3. Information by major customer
Information by major customer is omitted, as there are no customers to whom sales exceed 10% of net sales (ordinary revenues) toexternal customers in the consolidated statement of operation.

[Information on impairment losses on fixed assets by reportable segment]
For the years ended March 31, 2019 and 2020
Information on impairment losses on fixed assets by reportable segment is disclosed in “Note 30. Segment information.”[Information on amortization of goodwill and unamortized balance of goodwill by reportable segment]
For the years ended March 31, 2019 and 2020: Not applicable.

[Information on gains on negative goodwill by reportable segment]
For the years ended March 31, 2019 and 2020: Not applicable.

[Related party information]
1. Related party transactions
For the years ended March 31, 2019 and 2020: Not applicable.

2. Notes on the parent company or any important affiliated company
For the years ended March 31, 2019 and 2020: Not applicable.

T&D Holdings INTEGRATED REPORT 2020147Corporate Data

Note 31

Per Share Information¥

US$

Years ended March 31,

2019

2020

2020

Net assets per share¥1,884.30¥1,857.77$17.07

Net income per share

118.50111.31

1.02

Net income per share (fully diluted)

116.16109.071.00

Note: A summary of the net assets per share, the net income per share and the net income per share (fully diluted) computations is as follows:(1) Net income per share and net income per share (fully diluted)
Years ended March 31,¥ millions

US$ thousands

2019

2020

2020

¥72,825¥67,103$616,587———¥72,825¥67,103$616,587

614,581,825

602,854,887

Net income per share:
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent attributable to common shareholders

Shares

Weighted-average number of common stocks outstanding

Years ended March 31,

2019¥ millions

US$ thousands

2020

2020

Net income per share (fully diluted):
Adjusted profit attributable to owners of parent

¥(20)

¥(20)

$(191)

Amortization of bond premium (after tax)

¥(20)

¥(20)

$(191)

12,206,787

12,168,016

11,230,066

11,375,701

976,721792,315——

SharesIncrease in common stock
Convertible Bond
Subscription rights to shares
Summary of potential shares that are not included in computation of net income per share(fully diluted) due to lack of dilution effect(2) Net assets per share¥ millions

As of March 31,

Net assets
Deduction from net assets

2020

2020

¥1,159,588¥1,123,149$10,320,224

6,473

7,208

66,237

Subscription rights to shares

1,081

876

8,052

Non-controlling interests

5,391

6,332

58,184

Net assets available to common shareholders¥1,153,115¥1,115,941$10,253,986

The number of common stock outstanding

611,958,309

600,688,559

Shares148

US$ thousands

2019

T&D Holdings INTEGRATED REPORT 2020

(3) The Company’s shares remaining in the BIP (Board Incentive

deducted in calculation of net income per share and net incomePlan) Trust, which are recorded as treasury shares in sharehold-per share (fully diluted) is 807,343, and the number of treasuryers’ equity, are included in treasury shares to be deducted in theshares to be deducted in calculation of net assets per share is

calculation of the average number of shares during the period

798,400 for the consolidated fiscal year ended March 31, 2020.

for calculation of net income per share and net income per share

Also, for the consolidated fiscal year ended March 31, 2019, the(fully diluted). Also, for the calculation of net assets per share, itaverage number of treasury shares to be deducted in calculation

is included in the number of treasury shares deducted from theof net income per share and net income per share (fully diluted)

total number of outstanding shares at the end of the fiscal year.

was 479,035, and the number of treasury shares to be deducted

Accordingly, the average number of treasury shares to be

Note 32

in calculation of net assets per share was 827,900.

Significant Subsequent Events

Further to the resolution made at a board of directors meeting held on November 25, 2019, the Company has completed its acquisitionof a 25.0% ownership interest in Fortitude Group Holdings, LLC (“Fortitude”) from American International Group, Inc. (“AIG”) throughT&D United Capital Co., Ltd. (“TDUC”), a wholly owned subsidiary of the Company, on June 3, 2020 (Japan time), as following.
The transaction was a joint investment with Carlyle FRL, L.P. (“Carlyle Fund”), a newly created investment vehicle managed by The
Carlyle Group L.P. (“Carlyle”).

(1) Ownership Structure post Transaction– TDUC: 25.0%– Carlyle Fund: 71.5% (including 19.9% of Carlyle’s existing ownership interest)– AIG: 3.5%

(2) Transaction Consideration– $711 million (approximately ¥ 76.8 billion, at the rate of 1 U.S. dollar = 108 Japanese Yen)

T&D Holdings INTEGRATED REPORT 2020

149

Corporate Data

Independent Auditor’s Report

150

T&D Holdings INTEGRATED REPORT 2020

T&D Holdings INTEGRATED REPORT 2020151

Corporate Data

152

T&D Holdings INTEGRATED REPORT 2020

Stock Information
As of March 31, 2020

BASIC INFORMATION
Stock Exchange Listings
Industry and Security Code
Trading Unit
Number of Shares of Common Stock
Fiscal Year-End
Ordinary General Meeting of Shareholders
Date of Record
Public NoticeTransfer Agent
Number of Shareholders

Tokyo Stock Exchange
Insurance, 8795
100 shares
Authorized: 1,932,000,000
Issued: 633,000,000
March 31 every year
June every year
Ordinary General Meeting of Shareholders March 31 every year
Dividends March 31 every year (interim dividend, when paid, on September 30)• Electronic public notice (Japanese only)• URL: https://www.td-holdings.co.jp/information/public.html/• If the Company is unable to issue an electronic public notice due to an accident or any other unavoidable
reason, a public notice will be issued in the Nihon Keizai Shimbun (daily newspaper).
Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-Chome, Chiyoda-ku, Tokyo, Japan
URL: https://www.tr.mufg.jp/english/
220,668

PRINCIPAL SHAREHOLDERS
Name of Shareholders

The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account9)
Japan Trustee Services Bank, Ltd. (Trust Account7)
Japan Trustee Services Bank, Ltd. (Trust Account5)
MUFG Bank, Ltd.
JPMorgan Securities Japan Co., Ltd.
JP MORGAN CHASE BANK 385151
STATE STREET BANK WEST CLIENT – TREATY 505234
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)

Number of Shares Held

Percentage of Total Shares Outstanding

46,34235,23521,36015,93812,008
10,325
10,223
9,635
8,456
7,695

7.70
5.86
3.55
2.65
2.00
1.72
1.70
1.60
1.41
1.28

Note: In addition to the above, the Company holds 31,513 thousands of shares in treasury shares, which are excluded from the principal shareholders stated above.
Further, the percentage of total shares outstanding is calculated after deducting the treasury shares.

COMPOSITION OF SHAREHOLDERS AND SHARES
Proportion of Shares Held (%)

Composition of Shareholders (%)

Regional Distribution of Shares Held (%)

Non-life Insurance
Companies
Asia-Pacific

Banks
Financial Instruments
Business Operators
Individuals andOthers
Other
Corporations

U.S.

Foreign
Corporations,
etc.

Other
Corporations

Europe (including British
Overseas Territories), theMiddle East and Africa

Individuals andOthersJapan

Trust Banks

Foreign Corporations, etc.
Trust Banks
Other Corporations
Individuals and Others
Financial Instruments Business Operators
Banks
Non-life Insurance Companies
Life Insurance Companies
Other Financial Institutions
Governments and Local Public Bodies

34.22
27.89
17.43
11.18
3.54
3.35
1.44
0.24
0.71
0.00

Individuals and Others
Other Corporations
Foreign Corporations, etc.
Financial Instruments Business Operators
Trust BanksLife Insurance Companies
Banks
Other Financial Institutions
Non-life Insurance Companies
Governments and Local Public Bodies

65.47
34.15
0.32
0.02
0.01
0.01
0.01
0.01
0.00
0.00

Japan
Europe (including British Overseas
Territories), the Middle East and Africa
U.S.
Asia-Pacific
Others

65.78
19.91
13.12
1.19
0.00

T&D Holdings INTEGRATED REPORT 2020

153Corporate Data

Group Companies
As of September 30, 2020

The T&D Insurance Group comprised the holding company, 19 consolidated subsidiaries, and 6 affiliated companies as of
September 30, 2020. Centered on the life insurance business, the T&D Insurance Group’s operations are outlined below:

Insurance & Insurance-related
Businesses

Investment-related Businesses[9 companies][11 companies]
Investment Management andAdvisory, etc.

Insurance	Taiyo Life Insurance Company(Life insurance business)	Daido Life Insurance Company(Life insurance business)	T&D Financial Life Insurance Company(Life insurance business)
	Pet & Family Insurance Co., Ltd.
(Nonlife insurance Business)	T&D Asset Management Co., Ltd.
(Investment advisory and investment
trust services)

Other Investment-related
	T&D United Capital Co., Ltd.
(Principal investment, Investment
management [administration])	Capital Taiyo Life Insurance Limited(Life insurance Business)	T&D United Capital North America Inc.
(Principal investment, Investment
management [administration])	Fortitude Group Holdings, LLC(Insurance holding company)

	T&D Lease Co., Ltd. (Leasing)	Fortitude Reinsurance Company Ltd.
(Reinsurance business)

Insurance-related
	T&D Confirm Ltd.
(Policyholder confirmation services)	Taiyo Credit Guarantee Co., Ltd.
(Credit guarantee services)	Alternative Investment Capital Ltd.
(Investment in private equity funds)	Other subsidiaries and affiliated companies, etc.: 3 companies	Toyo Insurance Agency Co., Ltd.
(Insurance agent)

Administration-related
Businesses[5 companies]

Administration-related
	T&D Customer Services Co., Ltd.
(Life insurance policy clerical services,
including drafting, amendment, custody and distribution of documents, anddelivery of securities)

General Affairs andCalculation-related	T&D Information Systems, Ltd.
(Computer software and systemservices)	Nihon System Shuno, Inc.
(Premium collection)	Zenkoku Business Center Co., Ltd.
(Premium collection)
	Thuriya Ace Technology Company
Limited (Designing and developing
information technology, information
technology systems, software solutions
and business solutions for the insurance industry)	Daido Management Service Co., Ltd.
(Insurance agent)	Taiyo Life Aging Society Institute(Survey and research on health andmedical care)

Companies marked by154

are consolidated subsidiaries, and companies marked by

T&D Holdings INTEGRATED REPORT 2020are affiliated companies accounted for by the equity method.

Corporate Overview
As of March 31, 2020

Company Name

T&D Holdings, Inc.

Date of Establishment

April 1, 2004

Location of Headquarters

2-7-1, Nihonbashi, Chuo-ku, Tokyo 103-6031, Japan
Tel: +81-(0)3-3272-6110 Fax: +81-(0)3-3272-6552

Type of Business

Management control of life insurance subsidiaries under the Insurance BusinessAct of Japan and other laws and regulations, and other businesses associated with the above

Paid-in Capital

207,111.86 million yen

Security Code8795

Stock Exchange Listings

Tokyo Stock Exchange (First Section)

Number of Common
Stocks Issued

633,000,000 shares

Number of Employees

114

Organizational Structure
As of June 25, 2020

Shareholders’ Meeting
Nomination and Compensation Committee

Audit and Supervisory Board

Board of Directors

Group Compliance Committee

Audit andSupervisory Board OfficeGroup SDGs Committee
President
Executive Management Board
Group Risk Management Committee

Group Planning
Department• Group planning
• ERM
• IR
• Subsidiaries
management• Sustainability

Business
Development
Department• New businessGroup Strategy Board

Group ERM Committee

Group Finance &Accounting
Department• Finance & capitalmanagement• Accounting

Group Management Promotion Committee

Public Relations
Department

General Affairs
Department

Risk Management
Department

Internal Auditing
Department• PR• General affairs• Stock
administration• Personnel• Secretary• Group risk
management• Compliance• Legal affairs• Internal auditing

Websites
For more detailed information on the contents of this report, please see the Company’s websites.

Website of T&D Holdings, Inc.
https://www.td-holdings.co.jp/en/

Investor Relations
https://www.td-holdings.co.jp/en/ir/

Sutainability
https://www.td-holdings.co.jp/en/csr/

T&D Holdings INTEGRATED REPORT 2020155