ＤＤNEWSRELEASE

November 12, 2018
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Mothers)

Revision of Business Forecastfor Fiscal 2018 Ending March 31, 2019
With our new management policy, aggressive spending for further growth
after robust performanceTOKYO, November 12, 2018 - LIFENET INSURANCE COMPANY (TSE Mothers 7157,
President Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) announces a revision of its
business forecast for fiscal 2018 ended March 31, 2019, which was announced on August 10,
2018.

1. Business Forecast for Fiscal 2018(In millions of yen)
Ordinary profit(loss)

Ordinary income

Net income (loss)

Previous forecast (A)12,300

(800)

(600)

Revised forecast (B)12,600(1,600)(1,600)

300
2.4%

(800)
－(1,000)－

10,962

(197)

(249)

Difference (B) – (A)Change (%)(Ref.)
Business results for FY2017(Reference)
Initial forecast(May 15, 2018)
Annualized premium1of new business

1,800

Revised forecast(Aug. 10, 2018)
2,200(In millions of yen)
Second revisedforecast(Nov. 12, 2018)
2,600

2. Reasons for Revision
LIFENET transitioned to a new management structure at the 12th ordinary general meeting ofshareholders held in June 2018. Today, we have released a new management policy (fordetails, see “Lifenet Insurance’s New Management Policy” announced today). By following thispolicy to scale our business and raise operating efficiency, we seek to lift corporate value andachieve high profitability for the medium- to long-term. To that end, scaling the business is ofhigher priority than short-term profitability. We therefore plan to spend aggressively, primarily byinvesting in marketing promotions, mainly advertising.
It should be noted that the current profit and loss statement by statutory accounting
recognizes spending to gain new business as expenses for the current year and tabulates themas a lump sum in the first year of the policy. However, the insurance premiums that bring inrevenue will be collected and booked in our accounting procedures over the long term.
Therefore, as an insurer with a comparatively small number of policies-in-force and a relatively
small amount of insurance premium revenues, the amount of growth in new policy business will

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ＤＤ
NEWSRELEASE
trend toward a negative impact on profitability over the short-term and will have a limited effecton annual profit and loss, while expenses will raise.
The company has performed well with new business and continued to raise the number in thefirst quarter of fiscal 2018, thanks to the launch of Cancer Insurance in fiscal 2017, as we madeaggressive investment in marketing with a focus on advertising and promotions. Under thisvirtuous cycle that currently stands, we announced a revised business forecast on August 10,
2018 and we have spent aggressively so as to further scale our business. The success of thisstrategy resulted in the company achieving a near record high level of new business in thesecond quarter of fiscal 2018 and we reached record high of monthly new businessperformance in October 2018, while maintaining consistent operating efficiency from fiscal 2017
to gain each new policy in the first half of fiscal 2018.
In light of the strong results and consistent spending efficiency in gaining new business, wehave determined that following the newly formulated management policy to continue with theaggressive spending in a way that perpetuates this virtuous cycle will help scale the business byboosting brand power and raising recognition. That decision led to this second revision to thebusiness forecast for the current fiscal year.
Due to the aforementioned, we project lower ordinary profit and net income this fiscal year
than the previous forecast. However, we project annualized premium of new business1 of 2,600
million yen, up from 1,800 million yen in the initial business forecast. We aim to achieve thisrecord high in new business.
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 12months.

Note: The financial results forecasts for fiscal 2018 and other figures mentioned above are based on theinformation available as of the date of this release and certain assumptions deemed rational. The actual
results to be disclosed in the future may differ from the forecasted figures due to various factors.

About LIFENET (Website： https://www.lifenet-seimei.co.jp/)
Remembering the original purpose of life insurance - mutual support - LIFENET INSURANCECOMPANY was founded with the goal of offering simple, convenient and competitively priced
products and services based on the highest levels of business integrity. We sell these products
and services directly to customers over the Internet. By using the Internet, we are able to offer
highly cost-competitive products and accept applications from customers at any given time.
Through complete information disclosure and insurance consultations via email, over thetelephone and in-person, we wish to offer customers a transparent way to choose a life
insurance policy so they can compare, understand and approve of plans before signing up, as
well as to spread the idea that LIFENET is the customer's connection to life insurance.
Contact:
Investor Relations, Corporate Planning DepartmentTel:+81-3-5216-7900
e-mail: ir@lifenet-seimei.co.jp
Disclaimer: This is a summarized translation of the original Japanese document, prepared and provided
solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails.

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