Group Long-Term Vision

Try&Discover 2025
- In Pursuit of the Happiness of All Stakeholders-

T&D Holdings, Inc.
May 2021

Ⅰ. Review and Issues of Group Management
Ⅱ. Group Long-Term Vision

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1

Reviewing our Group Management-

Under the current mid-term management plan, in order to actualize the “creation of shared value”
which aims for a balance of social value and economic value, we have achieved growth throughrefining each Group company’s own business model.

-

While the economic value base shows a robust result, the financial value remains flat, and thecapital efficiency is decreasing.
Mid-termmanagementplan

Try & Discover for the Next Stage

Try & Discover 2021

-A Three-Year Period for Expanding our Growth Areas--Creation of Shared Value-

7.9%

6.5%

7.4%

6.8%

ROE

5.7%
119.5

83.3 56.3

91.7

Value of
New
Business

129.4

2016

143.4

140.3

150.0

115.8

83.3

78.5

77.9

73.0

64.9

Financial
Value based
Profit2015

5.8%

Profit Growth
2017

2018

2019

2020

* ROE = Financial value based profit / Net asset (average of corresponding FY end and the previous FY end)
* Financial value based profit on and before FY2018 is Adjusted net income, on and after FY2019 is Group adjusted profit.

2021（Plan）

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Changes in the Surrounding Environment and Issues of Group Management-

Surrounding environment has significantly changed due to digitization under COVID-19, progress inwork-style reforms, etc.

-

The importance of leading agility and flexibility-intensified management and to clear the way for“solution to management issues”.

Surrounding
changesMacro perspective

・The post-COVID-19 world will depend on how “deep” and “long” the impact of COVID-19
would be and whether the recovery process will take the V or U or L shape.

・With the technology innovation, etc., non-face to face transactions and non-traditional players’
entrance to market are expanding. Possibility of higher pressure on margins arises.
・Reconfirms the effectiveness of specialized / differentiated life insurance business model. On
Impact to the Groupthe other hand, the need for a consideration of the whole Group’s future is contemplated.
Group’s
Review of budget, stress
Handled by Crisis
Review of life
measuresManagement Headquarters
testing,eachcompany
insurance
marketingtowards（Working effectively）
undertaking
transactions
strategy
COVID-19
Micro perspective

Management
issuesCapitalefficiency
GrowthStrategy on
capitalGovernance・Capital efficiency on a declining trend, and ROE trending at a level below the cost ofshareholder’s capital・While Taiyo Life / Daido Life specialize in unique market / sales channel, domestic life
insurance market is expected to shrink.
・The necessity of establishing a growing business / foundation for revenue that ranks next todomestic life insurance business.
・The necessity of capital management as a whole Group such as structuring efficient / agile
distribution of capital within the Group, etc.
・The necessity of further creation of social values such as reinforcing linkage between ESG
and management strategy.

Establishment of Group long-term vision

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Ⅰ. Review and Issues of Group Management
Ⅱ. Group Long-Term Vision

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Thoughts Leading to the Establishment of Group Long-Term Vision• In the conventional medium-term management plan, we had analyzed the business environment both domestic / overseas,
set management targets in anticipation of future surrounding changes based on past experience, and formulated actions(strategies) to be taken.
• However, in today's increasing uncertainty, future forecasts are difficult, and while sticking to the strategy originallyestablished may hamper growth, it is necessary to shift corporate management from "forward-looking management" to"management based on the assumption that the future can't be read."• In order to achieve this, it is important to redefine “how we want to be (vision)" as a company that is not affected bysurrounding changes, contemplate what is effective in light of the vision (plan), and have a sense of flexibility and speed in

the way of thinking and action to be put into practice.
• Additionally, the U.S. Business Roundtable issued a statement that companies have a responsibility to bring economic benefits
not only to shareholders, but also to all stakeholders, including employees and local communities, and the transition fromshareholder capitalism to stakeholder capitalism is being explored, again questioning the significance of a company's
purpose.
• Furthermore, in the worldwide trend of SDGs, mainly among the Millennials and Generation Z, the value being fostered is that
"good companies" are not only “creating profit" but also are "making society better" and are “able to coexist with society".
➔ We will foster common group values by looking directly at changes in the surrounding business environment andclarifying the vision of the T&D Insurance Group with a forward-looking perspective. In addition, each company will
implement an action plan in line with the Group vision, and the Group will work integratedly to solve issues andsurvive the highly uncertain era of VUCA.

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Where Group Long-Term Vision Stands-

Long-Term Vision comprises of Group’s Management Vision (mid-long-term target of corporate
image and direction of the group), Group KPI (quantitative target in order to actualize themanagement vision) and Group Growth Strategy (strategies to achieve KPI).

-

Aiming for the result profit-wise to be visible in 5 years by pursuing the measures underconsideration one by one.
BackcastingGroup
Long-Term
VisionGroup's
Management
VisionFY2023
Plan

Management
challenges tobe tackled

Group
KPI

FY2022Plan
Try & Discover
2021- Creation ofshared value -2021

To consider single-year plans flexibly by checking
against the target
2022

With our “Try & Discover” motto
for creating value, we aim to bea group that contributes to all
people and societies.

2023

2024

2025

Group
GrowthStrategyGroup Long-Term
VisionFY2024
Plan

Group's
Corporatephilosophy

Single-year
management plan
Execution plan and budgetof each company
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Group's Management Vision - Statement-

保険を通じて、“ひとり”から、世の中のしあわせをつくる。
ていねいに向き合い、大胆に変えるグループへ。

Sow happiness, make change with boldness

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Group's Management Vision - Unpacking the vision through a story -Pride of T&D

Ｔ＆Ｄ’s challenge

We have always protected the happiness of people.
By facing each and every customer with care,
Together, we have supported their livelihoods as one.

Now, society is changing at unprecedented pace and people’s lifestyles are diversifying.
There is no standard anymore for the way families are, the way we work,
As well as the shapes our happiness might take.
Can we really say that today’s insurance answers such turbulent change?
One by one, by carefully stacking the trust we have gained from our customers,
The strength that only our group has nurtured becomes visible.
The possibility it withholds expands widely, going beyond all prevailing boundaries.

Actions T&D
should take andwhat we want
to becomeThe society
T&D aspires for

Take the “one” in front of us as a starting point, andLet’s recognize the world changing quicker than anyone else.
Let’s adapt to our changing society more flexibly than anyone else,
Taking steps with initiative, with boldness.
Let’s go beyond the boundaries of organizations,
Involve people who resonate with our beliefs, andBecome a comprehensive insurance group that can create happinessFor each and every person in the world.
Our origin is to face each “one” in front of us with care.
To recognize change and take on challenges with boldness.
This accumulation is what creates happiness in the world.
This is what we believe to be true.
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The story of the Group’s growth◉ Even under the pandemic, specialized and differentiated business model of the three life insurancecompanies have been functioning effectively.
◉ While aiming for sustainable profit growth in domestic life insurance business, utilizing the superlong and stable revenue base to distribute the group’s resources to new business fields.
◉ By setting the “Group KPI,” promoting the growth strategy that entails capital efficiency.
- Creating leaner domestic life insurance business through ROE perspective (i.e. intensifying thespecialization strategy)- Investing aggressively into new areas with high ROE and growth potential (i.e. searching for thegrowing sector)- A dramatic leap towards a new level of group management through pursuit of group synergy

Improving capital efficiency through increasing profit,
leading to an improved valuation
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Target level of 2025-

Aiming for an improvement of valuation through an improved capital efficiency by profit expansionof current business with domestic life insurance business at its core, further advancement of
capital management, and distributing group’s resources to growing sectors (e.g. closed bookbusiness).
0.9
Company Ｃ

P/EV ratio 0.8* Results of 2019
0.7
0.6

Targetlevel of
2025

0.5

0.3

Ｔ＆Ｄ

Company Ａ
Company Ｂ

0.2

Company E(2) Improvement onshare price

0.4

Company Ｄ(1) Improvement of capital efficiency through profit expansion

0.1

Profit expansion of current business + Profit contribution from growing sector
0
5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Adjusted ROE = Adjusted profit / Net asset (average of beginning and end of FY) *Results of 2019
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10Group Growth Strategy –Strategy Maps- In order to realize a sustainable development that also responds to the surrounding changes, portfolio management
as a whole group will be undertaken aggressively, while also taking appropriate governance measures towards various
business sectors and organizations from both sides of offensive and defensive approaches.
Adjusted ROE:
Minimum 8.0%

Growthpotential

High growth

Value upTry & Discover

New business[New sector]

Reinforcing sectors

Growing sectors[Asset management/ non-life][Closed book, etc.]

Digital customer platform- Launching new business- Stabilizing revenue

Distribution of
resources

Restructuring/integration/withdrawal

Pursuing
synergy-

Cross cell
Efficient use of data
Cost synergy, etc.

Enlarging size and scale
Reinforcing profitability

Core business (life insurance)- To turn the business aroundand to clear cumulative losses

Over ¥30
billionDistribution of
resources

Group-wide value up[Independent
insurance agents]

Rebuilding-¥95 billion

Foundation for group management[household market/ SME market]--

Further development of current life insurance business (new product/
service)
Improvement of investment returns (strategic share-holding,allocation)
Increasing customer contact by acquiring the young generation, etc.

Stable growth* Figures are adjusted profit levels of FY2025

Contribution of revenue
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Group KPI -the whole picture-

To continue being the customers’ and the financial market’s choice, we will pursue both financial
value and social value.

-

We will navigate our way through the uncertain times of VUCA by clarifying T&D Insurance Group’s
forward-looking vision which each company will implement as detailed action plan, reflecting on
the social trends and the super-long characteristic of life insurance business.
Society
Customer

Shareholder

Financial KPICreation ofsharedExpanding group revenue throughvalue
improvement of capital efficiency

Financial Value

Social Value
Providing solution tosocial issues through business

Clients

Employees

GrowthStrategyNon-financial
KPI

Strengthening core business

Diversification and optimization of business portfolio

Further advancement of ERM

Promoting integrated group management

SDGs management and creation of value

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Group KPI -Financial KPI- Shareholder returns: by efficiently utilizing capital from markets and maximizing profit throughproviding value to as many customers as possible. The continuation of this cycle will enhance thegroup’s corporate value sustainably.

Capital

ＲＯＥＶ

Shareholder
returns

Adjusted
profitFinancial accounting
based KPIManagement
on bothwheels
Risk

Risk

×

Return＝ReturnEquityRisk

EquitySoundness

ROR

ROE

ProfitValue of new
business
Economic value
based KPI

Towards sustainable development of theGroup corporate value

Adjusted
ＲＯＥ

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Group KPI -Financial KPI-

Result of FY 2020

FY 2021 target

FY 2025 target

Adjusted
profit¥77.9 billion¥73.0 billion¥130.0 billion

Adjusted
ＲＯＥ

5.8％

5.2％

8.0％

Value of new
business

ＲＯＥＶ¥143.4 billion

25.4％¥150.0 billion

6.5％¥200.0 billion
7.5％

Adjusted profit = Net income ± Valuation gains/losses caused by discrepancy of accounting treatment of assets and liabilities + Additional
internal reserves in excess of the legal standard requirements.
Adjusted ROE = Adjusted profit / Net asset (average of corresponding FY end and the previous FY end)
ROEV = Increase and decrease in EV / EV (average of corresponding FY end and the previous FY end)

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Group KPI -Expected Returns of Main Businesses- Expected returns based on business characteristics, etc. are set. Aiming to achieve Adjusted ROE of 8.0% as a groupwide profitability through profit expansion of current businesses and profit contribution from growing businesses (e.g.
closed book business.)

Distribution of Adjusted ROE
Business
事業内容
details

AdjustedＲＯＥ
ＲＯＥ

Consolidated
Households
Insurancebusinessbusiness（TaiyoHouseholdinsurance
Life）(Taiyo Life)
SME insurance business
SMEs insurance business（Daido Life）(Daido Life)
Independent
Independent insurance
insurance agent
agent businessbusiness(T&D Life）
Financial Life)（T&D Financial
New business investment
新規事業投資（ＴＤＵＣ）(T&D United Capital)
Asset managementbusiness
Asset managementbusiness （T&D
Asset
(T&D Asset Management)
Management）
0.0%

8.0%
Cost of shareholder’s capital 7.0%
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Group KPI -Non financials-

As long as corporations are “public entities of society”, the society’s sustainability equals
corporations’ sustainability. As a corporation that “exists with the society”, we will continue topromote “creation of shared value” under the existing mid-term management plan and further
develop its purpose.

-

In conjunction with aiming the achievement of non-financial KPIs, we will aim for an improvementof evaluations from external entities.
Category

Evaluation
category

TargetSocial value（non-financial
KPIs）

Minimum FY2020 level

Customer

Customersatisfaction

Minimum FY2020 level

Employee

Employeesatisfaction

Corporate
Value(Improvement from thecurrent level is set as atarget, as a relative
assessment)(Improvement from thecurrent level is set as atarget, as a relative
assessment)

CreationofSharedValue

Reduction of 40% from
FY2013 levels by FY2025

Society

CO₂ emissions(A 5-year upfront target fromThe Life Insurance
Association of Japan’s target)

Financial value（Financial KPIs）

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Group Growth Strategy- To actualize 11 strategic policies and improve capital efficiency to secure robust managementfoundation and competitive advantage
5 Critical Issues

11 Strategic policies

Ⅰ

Strengthening of core business❶Three life insurance companies to aim for becoming the number one player
among each of their specialized markets through integration of real and digitalsales activities, etc. (including DX strategies)❷To expand customer contacts among Millennials/ Generation Z.

Ⅱ

Diversification andoptimization of businessportfolio❸To further develop current investment areas such as closed book business, etc.
and in parallel, to consider tapping new areas of business to diversify revenue
streams.
❹Aggressive business portfolio management.

Further advancement of ERM❺Shareholder returns based on new capital management measures.
❻To reinforce economic value-based management, taking into account the
introduction of economic value-based solvency and IFRS trends.
➐Improve capital efficiency by allocating capital to businesses and assets withhigh return on risk while ensuring soundness.

Ⅲ

Ⅳ

Ⅴ

（Upgrading capital management）

Promoting integrated groupmanagement

SDGs management andcreation of value➑In addition to consolidating asset management functions, to pursue newsynergies that are not bound by conventional wisdom, transcending theboundaries of businesses such as life insurance, non-life, and asset
management.
➒To realize "new working styles" in which diverse human resources can play anactive role.
❿To strengthen group governance. To foster a new group culture.
⓫By applying the underlying management concept of “creation of shared value”
which creates both economic and social value, to contribute to a sustainable
society by solving social issues through business activities.
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Strengthening of Core Business –Intensifying Life Insurance Business- The three life insurance companies will continue to aim the number one player in their respective
specialized markets by transforming sales activities through the integration of real and digital andproviding optimal products and services that capture customer needs.
Company

Specialized
marketStandard policy
To become the number one
player in senior market

HouseholdmarketTaiyo Life

Daido Life

T&D Financial
Life

Distributing brochures tohouseholds (approval base)Appointment-based
visits

New prospects

Combination activity- Product-integrated service

Utilization of digital platform andvarious data

- Firm connections withpartner institutions- Specialized channels in SME
market- Supporting management
and health issues

Independent
insurance
agentsmarketGathering and enhancing
customer database- Product development aheadof the curve

To become the partner for
SMEs management
SME
marketTransforming sales activities

To mark a bigger presence
within independent insurance
agents market- Network within financial
institution agents- Flexibility and speed in
product development

face-to-face / remote (person-to-person) / digital

Hybrid sales structure
sales representatives / tax accountants / financial institutions

Digital platform for SMEs
All administration transformed to
non face-to-faceDigital tools
e.g. online
meetings

face-to-faceconsulting
Independent
insurance
agentsBanks, etc.

Insurance shops

Agents on favorable termswith financial institutions

Agents specialized insales visits

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Strengthening of Core Business –Intensifying Life Insurance Business- By utilizing technology to its full potential, to work on digital transformation of both customer service(front desk business) and internal transformation (back operations), which will lead to competitive
advantage.

DX of sales
activities / service
Convenience inpolicyadministration

Customer contact
 Hybrid sales activities of real x digital Digital platform for SMEs

 Reform of My Page functions
 Expansion of non face-to-faceadministrations

Focused investment in IT systems¥40 billion as group total(cumulative of 5 years)

 Promotion of remote workand virtual sales activities
 Promotion of abolishment ofseal stamping and reduction of
paper usage

Operation

 Establishment of full-time DX
organization
 Establishment of agile
software development
structure

Organization
systemDX of corporate
reforms

Data utilization
 Expansion of customer
database Synchronous datautilization platforms

 Aggressive employment
of digital humanresources Requirement ofobtaining IT related
qualifications

Training humanresources

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Strengthening of Core Business –Controlling operating expenses- Although DX-related system investment is on an expanding trend going forward, we will continue to
implement appropriate operating expense cost control to maintain the industry's lowest operating
expense ratio.
Trend of Operating expense ratio(based on annualized premiums ofpolicies in force）
15.0%

Daido Life

14.0%

To control operating expenses
appropriately in order to maintainthe industry’s lowest level ofoperating expense ratio

13.9%

Total of three

13.6%

companies
Taiyo Life

9.9%

TDF Life

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Operating expense ratio = (Operating expense + depreciation) / Annualized premiums of policies in force (average of previous
year end and the corresponding year end)
* For T&D Financial Life, expenses related to reinsurance was deducted.

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Strengthening of Core Business –Searching New Sector-

To shape a new economic zone centered on "digital" to create customer contacts with theMillennials and Generation Z, who will lead the next generation-

In the future, while establishing long and stable relationships with the customers through providing
insurance products specialized in the economic zone, we will also contribute to the diversificationof customer contacts throughout the Group by sharing the established customer platforms andchannels with group companies.
Healthcare

Moneyplanning

Digital Customer
Platform Scheme

Establishment of aservice providing
company (TBD)

Establishment of asmall-amount shortterm insurancecompany (TBD)

Service

Alliance

Insurance

Collaboration

User

App provider, etc.

Customer contacts with
the Millennials andGeneration Z

Corporations andcommunities of theMillennials andGeneration Z

To create new customer contacts

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Diversification and Optimization of Business Portfolio – Closed Book Business -The closed book business is a priority field from the viewpoint of market growth potential andcapital efficiency, capable of becoming the Group’s "opportunity" and "strength", where know-how
and knowledge such as life insurance underwriting, investment, risk management, etc. can beutilized.

-

In addition to additional investment opportunities in Fortitude, we will pursue new investment
opportunities that are expected to have a risk dispersion effect, aiming to increase profit
contribution and optimize our business portfolio.
Diversification and optimization of business portfolio(Investment in growth sectors + risk dispersion with domestic life insurance➡ contribution to profit expansion leading to improvement of capital efficiency)

Closed book business determined as a priority❶Fortitude
To support growth asa strategic investor(to capture additional
investment
opportunities e.g.
share issuance)

Already invested
amount¥79.9 billion（FY2020）❷New investments
Also assuming
investment similar in（geographically/business model-wise) size to the current
investment level“Risk dispersion”

To utilize experience/know-how obtained
through investment
into Fortitude

Aiming forenlargement
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Diversification and Optimization of Business Portfolio – Closed Book Business -In order to expand and reinforce closed book business investment, we will promote allocation of
resources and strengthening of the Group structure, aiming to strengthen profit contribution andearn strategic benefits.

Human resources

Funds(specialists frominhouse/ external)(considering toprocure externally)

Knowhow/knowledge

FY2020Adjusted profit(actual)¥12.5billion
Approx. 15% of

To strengthen revenue contribution
by promoting additional investments
in Fortitude andnew investments concurrently

FY2025Adjusted profit target

Over ¥30.0billion
Approx. 25% ofGroup consolidate figures

Synergywithdomestic life
insurance- Riskdispersion- Capturingclosed bookbusiness indomestic life

Group consolidated
figures

Reinforcing and expanding risk management structure of
T&D United Capital

Already To expand the accumulative scale of investment by 3 - 4 times
invested
amount¥79.9billion（FY2020）

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Group Risk Management- In anticipation of the introduction of economic value based solvency, we have reduced interest rate risk
and strategic share-holdings, that are high in uncertainty and low returns on risk. While controllinginvestment risks, we will expand the amount of risk through business investments and pursue to optimallybalance insurance risk, investment risk, and overseas business investment risk.
Consolidated Risk Amount

Reduction of Interest Rate Risk(Daido Life)
40

Asset

100%

Liability

80%
60%

20

To raise Interest
Matching Ratio(extension of theduration of assets）

0

40%
20%

2017

2018

2019

2020

Daido Life

trillion

Operation risk, etc.
overseas

2017

2018

2019

2020

44%

8%

Investment Risk amountrisk

To reduce to lessthan 20% of net
asset

40%

¥1.9

by 3 - 4 times)

FY20202016

FY20252025

Reduction of Strategic Shareholdings
Taiyo Life

Allocation to business
investment(To expand the scale of investment
0%

2016

16%

54%

Insurance
risk

38%

¥1.5

trillion

2025
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Further advancement of ERM -Group Capital Management- To generate stable revenue in the domestic life insurance business and allocate capital to thedevelopment of growth sector and new businesses. To implement the Group capital management cycle
and improve capital efficiency by making effective use of capital.

Shareholder returns(Cash dividends,
share buybacks)

Retainedearnings forinvestment ingrowth sector

Group capital

Maximization

Policy onshareholder
returns

Improvement of of investment
profit/ capitalrevenueefficiency

Improvementof investment
efficiency

Expandingshareholder returns
through profit
expansion

Allocating the Group’s
capital towards highreturn on riskbusinesses centeredaround growth sectors

Improvementof profit/
capitalefficiency

To utilize external funds
for capital allocation in
growth sectors to
improve capitalefficiency
Disposing of
nonprofitableassets

Allocationof capitalto growth
sectors
Reduction of interest risk
and strategic shareholdings

Improving capitalefficiency of theGroup through profit
expansion in thegrowth sectors (e.g.
closed book)
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Further advancement of ERM -Cost of Shareholder’s Capital-

Pursuing to cut down on cost of shareholder’s capital by reducing risks and improving profit
stability, etc.

-

In view of improving capital efficiency, to proactively utilize external funds (hybrid capital) as
much as possible.
Result of FY2020

Cost of shareholder’scapital *1

Target level of FY2025- Risk reduction- Improvement of profit stability

Adjusted ＲＯＥ：5.8%
ＲＯＥＶ ：25.4%
Capital efficiency- Take risks according to the growthof the company’s corporate value- Utilize hybrid capital *2

Adjusted ＲＯＥ：8.0%
ＲＯＥＶ：7.5%

Cost of shareholder’s capital：7.0%*1: Cost of shareholder’s capital is set based on CAPM (Capital Asset Pricing Model), etc. (currently approximately 8%).
*2: Currently Group’s balance of subordinated debt is ¥170 billion. To utilize hybrid capital to the amount that does not negatively impact
the Group’s ratings and in consideration of the market’s supply and demand, etc.
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Further advancement of ERM -Policy on Shareholder Returns-

By shifting from “returns based on single-year profit” to “returns based on capital”, to implement
shareholder returns that is stable and sustainable.

(1) For cash dividend, to pursue stable and sustainable increase, using adjusted DOE as a guide (to be
gradually raised to approximately 4%).
(2) Newly introducing “Core ESR” as an indicator for considering shareholder returns. For sharebuyback, to implement agile and strategic share buyback that takes into account the level of core ESR.
[ Relationship between core ESR
and shareholder returns ][ Basic concept ]To increase stably and sustainably

To implement agilely andstrategically

Cash dividend

Share buyback
225%

Adjusted DOE
To be raised gradually toapproximately 4%［Total cash dividend /shareholder’s capital］

・Sustainable increase of
cash dividends
・Further consideration ofshare buyback

Core ESR, etc.*［Surplus that is non applicableof UFR, exempt of subordinateddebt / Economic value based risk
amount］

197％
Neutral
level

185%

Total payout to secure minimum 40% ofGroup adjusted profit over the mid-term* To consider opportunity for growth investment, status of adjusted
ROE / ROEV, our share price, and others.

（End of
March
2021）

・Sustainable increase of
cash dividends
・Consideration of sharebuyback

・Sustainable increase of
cash dividends

153%
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Further advancement of ERM[Reference] Trend of Shareholder Returns

58.9%
48.4%

49.3%

48.0%

40.9%
Total payout
ratio
Share Buyback(billions of yen)

Cash Dividend(billions of yen)

AnnualDividends per
share

17.0
17.0

23.3

13.0

13.0

25.7

26.4

To increasestably /sustainably

To implement
agilely /strategically

Cash
Dividend

Share
Buyback

10.0

27.4

20.5

¥32.5

'17/03¥37.5'18/03¥42.0'19/03¥44.0'20/03￥56.0¥46.0 (Fiscal year2021
forecast)'21/03（Long-term vision）

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Promoting integrated group management-

It is necessary to efficiently utilize Group resources as much as possible in order to address highly
uncertain management environment.

-

To pursue new synergy that is not bound by the conventional ways, beyond the boundaries ofbusinesses such as life insurance, non-life insurance and asset management.

1

Synergy that leverages the sales power of the three life insurancecompanies
・Further expansion of cross-cell, sales of P&F as agents, incorporating TDAM products into insurance
products, etc.
・Effective / efficient sales activities by mutually using customer database2

Upgrading life insurance investment and reinforcing asset management
・By gathering the Group’s asset management function / human resources to TDAM, to actualize upgrading oflife insurance investment and reinforcing of asset management

3

To pursue cost efficiency, etc. through efficient use of resources
・Promotion of cost synergy (e.g. mutual use of already-owned real estate, etc.)
・Provision of social infrastructure (e.g. nursing homes, etc.)

4Strengthening the Group’s corporate governance・Making use of the location of HQs and encouraging interaction of human resources
・Fostering Group’s corporate culture, improving sense of belonging to the Group

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Promoting integrated group management-Group Cooperation on Asset Management Function-

Establishment of Group cooperation system regarding alternative investments to streamline andimprove efficiency by expanding the size of investment and by reinforcing training.

-

In addition to upgrading life insurance asset management, we strengthened and expanded ourinvestment advisory business by improving our external appeal using life insurance funds as acatalyst and strengthening partnerships with overseas asset management companies. Moreover,by pursuing investment opportunity into overseas asset management companies, aim to expand
profit of Group asset management business.
Professionalization of human resources

Taiyo Life

- Sharing of investment know-how within
the Group/ reinforcing training by
mutually utilizing human resources

Taking advantage of the size

Daido Life

Issues with asset
management

Joint Investment

Alternative
Assets- Securing foundation for revenue- Improvement of investment capabilities
through increased investment
opportunities

Expanding investment to strengthen thesystem
Improving credibility through use oflife insurance assets, etc.
Improving negotiation skills withoverseas asset managementcompanies

T&D Financial Life

- Securing humanresources andimproving expertise- Improving efficiency

Strengthening of external sales(investment advisorybusiness, etc.)

Investment into overseas asset
management companies

Expansion ofGroup asset
managementbusiness
revenue

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30

Promoting integrated group management -Work style reforms-

A common "direction" and "required results“ have been set as a group, and each company ispromoting work style reforms according to their business characteristics, etc. Realizing a "new way
of working" in which diverse human resources can play an active role.
The direction of work style reforms
By utilizing our experience under COVID-19 and advancing the transformation of the processes
and flows of previous work style, we will realize a highly productive "new way of working" in which
diverse human resources can play an active role.

Required results

Improvement of
employee
Continuation of businesssatisfaction(Reinforcing BCP)
Empowerment diverse
human resources(Securing humanresources)

Maintenance ofReviewing

IT systems

tasks

Total and complete
overhaul of HR
system

Improvement of
productivity(Contribution to
top line)
Review of
office space

Improvementof costefficiency(Contribution
to bottom line)

Development ofGroup management
resources

Reform of
employee/
managements’
understanding

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31

SDGs Management and Creation of Value -Creation of Social ValueSustainability Basic
PolicyThrough life insurance business, the Group’s core business, wewill create social value and cultivate “society’s happiness" byaddressing priority themes (materiality).

Creation of Shared Value
Achievement of non-financial KPIs
Measures for promoting sustainability

Addressing social issues
through life insurance
business
Providing better product/
service

Checking the conformity to
the Human Rights Policy
and disclosure of its
outcomeReduction of businessinduced environmental
impactHuman rights due diligence

RE100 participant (using
renewable energy)

Promotion of diverse work styleComplete disclosure of TCFD, etc.

Exercising ESG investment
based on PRIGroup ESG Investment Policy
Supporting carbon-intensive
companies to decarbonize

Sustainability Priority Themes (materiality)
Provide workplace
Promote healthy and abundant environments that enable all
lives for all people
people to participate actively

Help mitigate and adapt toclimate change

Invest to help build a sustainable
society

Current evaluation MSCI evaluation: Recipient of ESG evaluation A (Constituent of MSCI Japan Empowering Women Index(WIN)) FTSE evaluation: Total evaluation score of 4.0
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32

SDGs Management and Creation of Value -the Whole Picture-

Financial KPI

CultivatingSociety’s
Happiness

Adjusted profit
Value of new
business

Growth Strategy

Strengthening ofCore Business

Adjusted ROE

Diversification and
Optimization ofBusiness Portfolio
Further
Advancement of ERM

Decreasing
population/ declining
birth rate and aging
society

Managing
Environment

Diversified sales
channels

Creation of Shared
Value

ROEV

Promotion ofIntegrated GroupManagement

Improvement of
stakeholders’satisfaction

Improvement ofcorporate value

Technology
innovation

Healthy andabundant lives

Employment andExpansion of climate
decent workchange risks
globalGroup long-term vision Stretched healthy Sustainable
environment
life expectancy
Try & Discover 2025
Robust and lively
Deepened inequality

Social issues

Customersatisfaction

Employeesatisfaction
CO2 emissions,etc.

society

Materiality

Non-financial KPI
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