Securities Code: 7157
TSE GrowthPresentation Material
for Investors
First Quarterfor Fiscal 2023

August 14, 2023

IFRS Reporting◼
◼

IFRS adoption will better present periodic performance and profitability from policies-in-force
Capital adequacy and dividends are regulated by statutory accounting standards (J-GAAP)
Statutory Accounting（J-GAAP）

Important perspective

Embedded ValueIFRS 17

Financial soundness forpolicyholder protection

Economic value of
insurance policies including
future profit

Recognition of revenue
based on the retentionof in-force business

Acquisition expense isrecognized at the time ofacquisition.

The expected profit for thepolicy period isimmediately recognized.

The expected profit isallocated over the termof the policy.

Year1

Timing ofprofit recognition

Year1

Year2 Year3
profitYear4
・・・・

present
value ofprofitYear1
profitYear2 Year3

Year4
・・・・

loss

1

1Q for Fiscal 2023 Key Highlights
Key Indicators
Corporate Value

GrowthProfitability

EEV

Annualized premiumof policies-in-force1

Insurance service
results

24,4082,274(European Embedded Value)

126,978

million yen(Y-on-Y 107.5%)

million yen(Y-on-Y 110.2%)

million yen(Y-on-Y 137.7%)

Notable Achievements◼

◼
◼

Started offering GCL2 to mortgage loan borrowers of au Jibun Bank from July 1st.
Annualized premium of policies-in-force for GCL was JPY 2,384 million as of theend of July3
Plan to offer our products through financial app Habitto in autumn 2023
Revised business forecasts for fiscal 2023 based on 1Q performance

1. The amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments are monthly installments, thus the annualized premium is calculated as multiplying the monthly premium by 12 months(The same will apply hereafter).
2. GCL stands for Group Credit Life Insurance
3. Preliminary report from “July 2023: MONTHLY DISCLOSURE”

2

Annualized Premium of Policies-in-Force◼ Grew 10.2% YoY, maintaining steady growth◼ Combined annualized premium including GCL was 26,881 million yen
as of the end of July 2023
July
(Preliminary report) 1:Annualized premium of policies-in-force for GCL (JPY millions)JPY

24,408:Annualized premium of policies-in-force for individual life insurance (JPY millions)

26,881 million
2,384Group credit
life insurance

24,496

Individuallife insurance

22,142
19,473
16,461
13,652

Y-on-Y+10.2％

2019 1Q
2019/061.

2020 1Q
2020/06

Preliminary report from “July 2023: MONTHLY DISCLOSURE”

2021 1Q
2021/06

2022 1Q
2022/06

2023 1Q
2023/06

2023 7月末
2023/07（YY/MM）

3

Policies-in-Force Movement◼ Continued to grow while individual life was affected by decrease ofcustomer’s demand for insurance
FY2021/
1Q

FY2022/
1Q

FY2023/
Net increase of
1Q
individual life insurance
JPY

375 million

630
759

Annualized premium ofpolicies-in-force

JPY

24,408 million

Y-on-Y＋10.2％
22,142
Y-on-Y

＋13.7％
19,4732021/032021/06

Surrender &lapse ratio1

7.6%
1.

Surrender and lapse ratio is annualized

2021/092021/122022/032022/06

2022/092022/122023/032023/06

Surrender &lapse ratio1

Surrender &lapse ratio1

6.4%

6.8%

（YY/MM）

4

Summary IFRS P/L◼ Insurance service results and net income resulted in
2,274 million yen and 1,765 million yen, respectively（Ref.）FY2022

FY2022/1Q2

FY2023/1Q2

ChangeInsurance service results

1,651

2,274

622

6,618

Financial results1

(293)

367

661

(452)

Other results

(179)

(120)

59

(822)

Profit before tax

1,177

2,521

1,344

5,343

789

1,765

976

3,562

Items

Net income attributable toowners of the Company
1.
2.

(JPY millions)

Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense
1Q of FY2022 includes 278 million yen, 1Q of FY2023 includes 14 million yen and FY2022 includes 1,378 million yen of insurance claims and benefit related to COVID-19

5

Insurance Service Results1◼ Increased 37.7% YoY, 2,274 million yen◼ 27.7% progress rate for business forecasts of fiscal 2023
Business forecasts
announced in May 2023

8,200

:Insurance service results (fiscal year, JPY millions):Insurance service results (1Q, JPY millions)
7,216
6,618

6,606

2

5,419

Progress rate
for the business
forecasts

27.7％

JPY

1.
2.

1,324

1,562

1,741

2019

2020

2021

2

1,651
2022

2,274 million

2

Y-on-Y＋37.7％

Figures for FY2021 and earlier are for reference use only as they are before date of transition to IFRS
1Q of FY2022 includes 278 million yen, 1Q of FY2023 includes 14 million yen and FY2022 includes 1,378 million yen of insurance claims and benefit related to COVID-19

2023/1Q (fiscal year)
6Insurance Service Results Analysis◼ Increased due to the calm down of COVID-19 claims andincrease of CSM release along with the growth of in-force business(JPY millions)(JPY millions)
Items
Expected claims minus incurredclaims1

FY2022/1Q

FY2023/1Q

368

552

400

433

32

1,537

1,677

140

Reinsurance results

(74)

(157)

(83)

Others

(27)

(47)

(19)

1,651

2,274

622

CSM release

Insurance service results

552

32

Reinsurance
results

(83)

2,274

Others(19)

Insuranceservice results

1,651

Y-on-Y+JPY 622
million2022/1Q
1.

Insuranceservice results

140

Change(184)

Risk adjustment release

Risk
CSM release
Expected adjustment
minus incurred release

1Q of FY2022 includes 278 million yen and 1Q of FY2023 includes 14 million yen of insurance claims and benefit related to COVID-19.

2023/1Q
7

European Embedded Value1◼ EEV and value of in-force business have been strongly growing at a
CAGR of 19%2 and 31%, respectively since IPO¥1,821◼ EEV per share increased steadily to 1,821 yen¥1,788¥1,673¥1,570: Value of in-force business (JPY millions)

126,978

106,299

108,510

18,367

18,467

116,604¥1,430: Adjusted net worth (JPY millions)

124,666: EEV/share (JPY)
95,14073,431
91,43576,14960,878¥441

18,547
5,122
13,425

2012/03 ’13/03

12,553’14/03’15/03’16/03’17/03’18/03’19/03’20/0318,990’21/0325,168’22/03’23/03’23/06 (YY/MM)

1. Lifenet’s EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The European Insurance CFO Forum Market Consistent Embedded Value Principles©) is referred. From fiscal
2016 onward, a predetermined ultimate forward rate has been used to extrapolate the level of ultra-long-term interest rates past the last liquid data point. This method of extrapolation has also been used to restate EEV as of March
31, 2016. EEV as of June 30, 2023 is calculated applying the same operating assumptions as those used for March 31, 2023, and is not reviewed by third party specialists.
2. The calculation includes 3,040 million yen in proceeds from a third-party allotment in May 2015 and 9,005 million yen from overseas public offering in July 2020 and 9,771 million yen from overseas public offering in September 2021.

8

Changing Factors of EEV1
◼ EEV growth driven by adjusted incremental EV andeconomic experience variances(JPY millions)

Expected
existing
business
contribution
Value ofnew business

Operatingexperiencevariances484

124,666
total JPY

Assumptionchanges2

Economic
experiencevariances

890

392

541

’23/03

126,978

Adjusted incremental EV2

Changedassumptions at
March 31, 2023

1,418

million’23/06 (YY/MM)

1. Lifenet’s EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The European Insurance CFO Forum Market Consistent Embedded Value Principles©) is referred. EEV as of June30, 2023 is calculated applying the same operating assumptions as those used for March 31, 2023, and is not reviewed by third-party specialists.
2. Adjusted Incremental EV accurately indicates our business growth during a certain period within increase in EEV.

9

Progress of Group Credit Life Insurance Business◼ Started offering GCL to mortgage loan borrowers of au Jibun Bank
from July 1st◼ Aim for steady growth as a new earnings base with looking to expand
partner banks in a mid-term
Characteristics of our productInitial start is on track×Annualized premium of policies-in-force for GCL
Business forecasts
announced in May 2023
JPY

Cover
illness for
hospitalization

Actual performance1

2,384

Sufficient
Coverage
Cancerdiagnosis
coverage
1.

Preliminary report from “July 2023: MONTHLY DISCLOSURE”

2,600 million・ ・ ・ ・
Cover fourdread
diseases
2023/072024/03 （YY/MM）

10

Collaboration with Habitto◼ Plan to offer our products through Habitto in autumn 2023, a financial
services app supporting younger generation

Savings

Investment

Insurance

11

Initiatives for Sustainability◼ Promote initiatives for Sustainability cherishing life insurance’s original
purpose – mutual support
Creating the future of life insurance
Creating the futurefor our customers

Creating the future
for a better society

Creating the futurewith our employees

Disclosed the performance in fiscal 2022
for “customer-oriented businessconduct principles”

Disclosed the greenhouse gas
emissions (GHG emissions)for Scope 1 and Scope 2

Developed policies ofhuman resources development andinternal environmental improvement

Corporate governance to create the future
Adopted non-financial indicators to performance-linked compensation to Directors1
Added “Sustainability” as one of the items of skill matrix of Directors
1.

Excluding the directors who are audit and supervisory committee members and outside directors

12Revision of Consolidated Business Forecasts for FY2023◼

Upwardly revised insurance service results and net income while adjusted annualized
premium of policies-in-force based on 1Q performance
GrowthAnnualized premium ofpolicies-in-force

Individual
approx. 1,500

Groupapprox. 2,700【Revised】 (JPY millions)business forecasts

28,200

Profitability

Insurance service results(JPY millions)【Revised】
business forecasts

8,600

6,618

24,0332023/03

FY20222024/03

FY2022(JPY millions)

Results

FY2023

FY2023
1Q Results【Previous】
Forecasts【Revised】
Forecasts

Annualized premium of policies-in-force

24,033

24,40828,50028,200 1%DOWN

Insurance revenue

20,732

5,500

24,90024,900Insurance service results

6,618

2,274

8,200

8,600

5%UP

Net income attributable to owners of theCompany

3,562

1,765

5,300

5,800

9%UP

13

Future Direction◼ Aim for growth in in-force business with both individual life and GCL◼ Continue 10% profit growth and aim for TSE Prime Market in around FY2025

Mid-term growth path of in-force businessInsurance service resultsGroup credit life insuranceContinue
10% profit
growth(JPY millions)

Steadily grow as new earnings base andconsider expansion of partner bank

Individual life insurance

8,600

Accelerate growth of core Internet directchannel and expand Partner business channel

7,216
6,606

6,618

5,419

FY2008FY2023

FY2019FY202314

MissionBe the leading company driving the growth of theonline life insurance market

Management goal

Priority
areas

Help our customers embrace life more fully byoffering comprehensible, cost-competitive andconvenient products and services

VisionManagement Policy• Innovation of customer experience

Enhancing and evolving the quality of all services with digital technology• Enhancement of promotion capabilities

Generating massive customer traffic by active promotion and expansion of agent sales
and white label business

Aim to achieve EEV (European Embedded Value) of
200 billion yen by business growth in a mid-term
15

LIFENET Manifesto
Comprehensible, Cost-Competitive, ConvenientI.

Our Guiding Principles

II.

Making Life Insurance Accessible Again - Headache-free(1) Creating the future of the life insurance without losing sight of its original
premise: “an ounce of prevention is worth more than a pound of cure.”(1) Helping the customers help themselves. By making our materials easy tounderstand, customers can determine which coverage is truly the best fit.

(2) Listening to what our customers are saying. Recognizing their needs andacting accordingly. Allowing our actions to be borne out of their voices
and needs.

(2) Turning “clauses” in the insurance contract into succinct points that yourgrandmother could grasp.

(3) Delivering the caliber of products and services that we would feel
confident recommending to our own friends and families.

(3) Making all touch points headache-free. Beyond the application process,ensuring the claims and billing processes are also easy to understand.

(4) Being a “straight-shooter”. Committing to transparency. Communicating
openly about our management team, our products, and our employees.
(5) Embracing diversity and dialogue to keep us abreast of changing needs
and preferences. Delivering peace of mind that we’ll be around in 100
years.
(6) Acting in good faith means always taking the high road when it comes tocompliance and ethics.

III.

Making Life Insurance Accessible Again - Affordable(1) Giving the customer what he/she needs. No more, no less at a fair price.
(2) Staying vigilant as to how we can provide our products more costefficiently.
(3) Always putting ourselves in our customers’ shoes in thinking about how tominimize their premiums.

IV.

Making Life Insurance Accessible Again - Convenient(1) Thinking about our customers’ convenience from every angle and every
touch point along the way.
(2) Forming alliances with like-minded partners who can add value above andbeyond our products and services to our customers.
(3) Providing health and wellness tips beyond the framework of life insurance
to create value in our policyholders’ lives.
(4) Creating a precedent for future generations as to what life insurance is(and should be) all about.

We wish to be a company that helps our customers embrace life more fully.
In order to live out that vision, we continue to challenge ourselves.

16All information on this document that is not historical fact constitutes
forward-looking information and is based on assumptions and forecasts
available to the company at the time of preparation. The company cannot
guarantee the accuracy of these assumptions and forecasts.
Earnings projections and other information on this may differ materiallyfrom actual performance due to various risks and uncertainties.
This is a translation of the original Japanese document, prepared andprovided solely for readers' convenience. In case of any discrepancy or
dispute, the Japanese document prevails.

https://ir.lifenet-seimei.co.jp/en/
Subscribe to our "IR email service" to receive
news releases and website updates via email.

Appendix

Glossary
Glossary

Explanation

Insurance revenue

Revenue accrued for fulfillment of insurance services. Mainly, expected claims, expected maintenance expenses, risk
adjustment release, CSM release and recovery of insurance acquisition cash flows. Investment components which will be
paid regardless of insurance event are excluded from expected claims.

Insurance service
expenses

Expenses incurred related to insurance service. Mainly, incurred claims, incurred maintenance expenses, amortization of
insurance acquisition cash flows and losses on onerous contracts. Investment components which will be paid regardless of
insurance event are excluded from incurred claims.

Insurance service
results

Insurance revenue less insurance service expenses, plus reinsurance results.

Financial results

Total of investment results from financial assets, insurance finance income or expenses from insurance contract liabilities(or assets) and reinsurance finance income or expenses from reinsurance contract liabilities (or assets).

Other results

Expenses not directly related to insurance services such as product development costs and income/loss on other thaninsurance businesses such as results of subsidiaries.

CSM (Contractual
Service Margin)

A component of insurance contract liabilities (or assets), which represents the unearned profit that the company willrecognize as it provides services over the coverage period. Accumulation of CSM is important for future profit growth.

New business CSM

CSM at the time of acquisition of new contracts during the period.

Risk adjustment

A component of insurance contract liabilities (or assets), which is the adjustment for uncertainty of future cash flows(addition on liabilities).

Insurance acquisition
cash flows (IACF)

Cash flows from expenses which are directly attributable to acquisition of insurance contracts. Advertising expenses for
new business, agency commissions and administrative expenses for underwriting new business are included. The
difference from marketing expenses we had used for J-GAAP is addition of administrative expenses for underwriting.

Maintenance expenses

Expenses directly related to fulfillment of insurance contracts other than insurance acquisition cash flows. Administrative
expenses for the maintenance of contracts and overhead expenses for the provision of insurance services are included.

19

Breakdown of Policies-in-Force’22/06Component
ratio

522,604

576,852100%- Term Life

255,049

280,78949%- Whole-life Medical

143,126

158,40327%- Term Medical Care

8,389

7,644

1%

- Long-term Disability

64,946

68,507

12%- Cancer

51,09461,50911%

3,422,571

3,675,820

331,841

365,865

Number of policies-in-force

Sum insured of policies-in-force1(JPY millions)

Number of policyholders
1.

’23/06

Sum insured of polices-in-force are the sum of death coverage, and do not include third-sector insurance.

20Annualized Premium / Number of New Business:Annualized premium1 of new business (JPY millions)
1,166:Number of new business

1,104

1,137

1,123
1,051

991

990

981
934

822

794

933

969
923

889

818

747
18,471
28,13623,36923,314
19,117

18,795

19,685

1Q

2Q

3Q

2019年度FY20191.

4Q

26,918

1Q

2Q

27,55329,864
26,16722,50622,1643Q

2020年度FY2020

4Q

1Q

2Q

3Q

2021年度FY2021

24,41023,9284Q

1Q

2Q

22,612

22,1283Q

4Q

2022年度FY2022

The amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments are monthly installments, thus the annualized premium is calculated as multiplying the monthly premium by 12 months.

1Q
2023年度FY202321

Surrender and Lapse Ratio:Surrender and lapse ratio1（%）

7.6%

7.6%
7.1%

7.1%

7.0%
6.4%

6.3%
5.9%

1Q

2Q

3Q

FY20192019年度
1.

4Q

5.5%

5.5%

1Q

2Q

3Q

FY20202020年度

4Q

1Q

2Q

6.6%

6.4%

6.0%

3Q

4Q

1Q

6.3%

6.4%

2Q

3Q

FY20212021年度The surrender and lapse ratio is the annual equivalent of the monthly number of policies surrendered and/or lapsed divided by the monthly average number of policies-in-force.

FY2022
2022年度

6.9%

6.8%

4Q

1Q
2023年度FY202322

Insurance Acquisition Cash Flows (IACF) Efficiency1:Insurance acquisition cash flows / Annualized premium of new business:Insurance acquisition cash flows per new business (JPY thousands)

Fiscal year

Quarter

117

2.2

IACF
(JPY millions)

1.

3.1

2.9

103

97

85

82

117

114

105

92

123

2.7

2.9

’22

’23/1Q (fiscal year)

2.8

2.6
2.3

2.4
2.0

2019

’20

’21

7,484

8,339

9,854 10,389

2,177

Figures for FY2021 and earlier are for reference use only as they are before date of transition to IFRS.

2022/1Q’22/2Q’22/3Q’22/4Q’23/1Q (fiscal year)

2,488

2,565

2,599

2,737

2,177

IACF
(JPY millions)23

Operating Expenses Ratio1:Operating Expenses Ratio（％）:Operating expenses excl. insurance acquisition cash flows (JPY millions)Fiscal year

19.4%

19.3%
17.8%

Quarter

4,726
3,896

2,757

20.9%

20.8%

1.

20.2%

20.7%

18.9%

18.9%

3,047

1,146

2019

21.0%

’20

’21

’22

’23/1Q (fiscal year)

1,139

1,181

1,173

1,232

1,146

2022/1Q’22/2Q’22/3Q’22/4Q’23/1Q (fiscal year)

Ratio of operating expenses excluding IACF divided by average in-force annualized premiums for the period (annualized). Figures for FY2021 and earlier are for reference use only as they are before date of transition to IFRS.

24

Breakdown of Insurance Service Results(JPY millions)

Items

FY2022（Ref.）Fiscal YearFY2023
1Q

１Q

Insurance revenue

20,732

4,921

5,500

Expected claims

9,569

2,258

2,561

Risk adjustment release

1,698

400

433

CSM release

6,401

1,537

1,677

Recovery of IACF

3,184

752

869

Others

(121)

(27)

(41)

13,874

3,195

3,068

Incurred claims

10,688

2,442

2,192

Amortization of IACF

3,184

752

869

2

0

6

Reinsurance results

(239)

(74)

(157)

Insurance service results

6,618

1,651

2,274

Insurance service expenses

Others25

Breakdown of Financial Results(JPY millions)

Items

FY2022/1Q

FY2023/1Q

ChangeInvestment results

(263)

392

656

Interest income

74

72

(1)

Impairment losses on financial assets, net

(0)

(0)

0

Other investment income

(337)

320

658

Insurance finance income (expense)

(35)

(29)

5

Reinsurance finance income (expense)

5

4

(0)

(293)

367

661

Financial results

26

Detail of Bond Portfolio1
As of June 30, 2023

(JPY millions)

JPY Bonds
Duration2

Foreign Currency Bonds

Available-for-Sale

Held-to-Maturity

19,190

16,48735,677

4 years

12 years

8 years

8,829

—

8,829

Duration2

1.
2.

Total

6 years

Non-Currency Hedged

1,969

—

1,969

Currency Hedged

6,859

—

6,859

Based on J-GAAP balance sheet as of June 30, 2023
Calculated by Lifenet

27

CSM Movements

Impact ofassumptionchanges, etc.

486

New business CSM
CSM,
beginningof the period

83,604(JPY millions)

Items

1,132

Interest
accretion

210

CSM,
end of the period

FY2023/1Q

74,907

83,604

New business CSM

6,879

1,132

Interest accretion

710

210

Assumption changes, etc.

7,508

486

Amortization of CSM(6,401)(1,677)

CSM, end of the period

83,60483,756

CSM, beginning of the period

83,756

Amortizationin current
period(1,677)2023/03

FY20222023/06 （YY/MM）28

Structure of Embedded ValueEV

Adjusted
net worth

Value of in-force
business(Net assets at end of period+ adjustments)

Profit/loss for thecurrent fiscal year isreflected in end-ofperiod net assets
Revenue

Revenue
ExpenseExpenseProfit/loss for
current fiscal year

Unrealized future profits/losses
on policies-in-force
at the end of current fiscal year29

EV Resilience to Financial Changes◼ Limited sensitivity to interest rates and stock prices
Jun. 2023 End
LifenetReference: March 2023 End1
LifenetCompany A

4%
1.9%

Company B

Company C

4%

1.9%
1%

-0.8%
-2.0%

-0.8%

0.5% interest rate increase
0.5% interest rate decrease
10% decrease in equity and realestate value and other

1.

-1%

-2.0%

Prepared by Lifenet based on disclosed information of domestic public life insurance companies.

-5% -5%

-4%

-5%

-7%

30

EV Sensitivity Analysis1◼ Impacts of changes in assumptions (sensitivities)
Change in EEV as ofJun. 30, 2023

Change in
VoNB

126,978

541

Sensitivity 1a: 1.0% increase in risk-free rate

(5,043)(86)

Sensitivity 1b: 1.0% decrease in risk-free rate

4,735

69

Sensitivity 1c: 0.5% increase in risk-free rate

(2,507)(41)

Sensitivity 1d: 0.5% decrease in risk-free rate

2,434

37

Sensitivity 2: 10% decrease in equity and real estate value and other

(956)

－

Sensitivity 3: 10% decrease in operating expenses

5,244

158

Sensitivity 4: 10% decrease in lapse rate

1,180

53

Sensitivity 5: 5% decrease in claim incidence rates for life business

6,652

142

Sensitivity 6: Change the required capital to the statutory minimum

267

6(JPY millions)

EEV and new business value as of June 30, 2023

1.

For each sensitivity, only one specific assumption is changed and other assumptions remain unchanged. It should be noted that the effect of the change of more than one assumption at a time is likely to be different fromthe sum of sensitivities carried out separately. As Japanese policy reserves are calculated in accordance with the IBR, the sensitivities carried out do not affect the reserves at the valuation date. The sensitivity on the valueof new business excludes the impact on the adjusted net worth.

31

Solvency Margin Ratio Calculation
As of June 30, 2023

( (𝑅 1 + 𝑅 8 )2 + (𝑅 2 + 𝑅 3 + 𝑅 7 )2 + 𝑅 4 )/2

Solvency margin ratio
3,109.2%
Cash and deposits
6,550
Monetary claims bought

4,499

Money held in trust
5,384

=

Total amount of solvency margin<numerator>
32,061Price fluctuation reserves 130

Securities
46,093

Risk of change in mortality rate (calculated based on value ofpolicies in force)

1,253

Excess over the fullZillmerized reserve 13,899

Deferred tax liabilities onavailable-for-sale securities 1－

Valuation difference on
securities available-for-sale(412)1【Ref.】
Consolidated
Solvency margin ratio

Insurance risk R1 1,035

Reserves for outstanding claims

Contingency reserves 2,444

Total amount of risk/2< the denominator>
2,062/2

3,289.7%

Other liabilities
1,815

Policy reserves
51,406

÷(JPY millions)

Add liabilities
with strong
capitalcharacteristics
such as pricefluctuation
reserves andcontingency
reserves

Medical insurance risk R8 402
Risk of change in medical incidence rate (hospital admission
rate , etc.)

Assumed interest rate risk R2 4
Risk that the actual investment return will fall below the
expected return used as a basis for calculating policy
reserves[Minimum guarantee risk] R7 －Risk related to products, such as variable annuities withminimum guarantees

Asset management risk R3 1,354

Tangible fixed assets

70
Intangible fixed assets
1,647

Other assets
5,945
1.
2.

Capital stock andother assets
16,000Net assets
15,587[Credit risk] Risk that asset values decline due todeterioration in financial condition of creditees[Price fluctuation risk]Risk of incurring losses due to decline inmarket value of stocks and bonds, etc.

Business management risk R4 83
3% of the total of the amounts of the other 5 risks (in the
Company’s case)

90% of the valuation difference on available-for-sale securities and deferred gains or losses on hedges (pre-tax) (if negative, 100%)
Items that do not apply to the Company or for which the amount is minimal have been omitted, except for certain bracketed items.

32