Securities Code: 7157
TSE GrowthPresentation Material
for Investors
First Quarterfor Fiscal 2024

August 14, 2024

1Q for Fiscal 2024 Key Highlights
Key Indicators
Corporate Value

GrowthProfitability

Comprehensive Equity1

Annualized premium2of policies-in-force

Insurance service
results¥

161,022mn(YoY 118.3%)¥

29,507mn¥

2,340mn(YoY 120.9%)(YoY 102.9%)

Notable Achievements◼

"Comprehensive Equity (CE)" has strongly grown of 18.3% YoY◼

Revision of GCL3 premium rate resulted in in-force business increase, expecting tocontribute to profits for the full year◼

Renewed marketing message to promote “Rebranding”

1. Comprehensive Equity is an indicator defined by the Group. It is the sum of “Equity (attributable to owners of the Company)” on the IFRS consolidated statement of financial position (B/S), “CSM”, a liability representing unearned
profit that the Group expects to earn as it provides insurance services (insurance contracts and reinsurance contracts are aggregated and tax-adjusted), and "GCL contracts value", which is the value of future IFRS earnings, including
future renewals for GCL policies-in-force.
2. The amount of money is 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 (for GCL,
expected premium income for the next month based on the in-force business) by 12 months. Annualized premium of policies-in-force for GCL as of the end of June 2024 is calculated applying premium rate as of June 2024.
3. GCL stands for Group Credit Life Insurance1Annualized Premium of Policies-in-Force◼ Resulted in ¥29,507mn and achieved significant growth of 20.9% YoY:AP1 of policies-in-force for GCL (JPY millions)¥:AP1 of policies-in-force for individual life (JPY millions)

16,461

2020/06

19,4732021/06

1. AP stands for Annualized premium (The same will apply hereafter)

22,1422022/06

29,507mn

YoY+20.9％

3,735

Group credit
life insurance

24,40825,772

Individuallife insurance

2023/06

2024/06（YY/MM）

2

Policies-in-Force Movement◼ GCL remained strong with net increase of ¥408mn in the quarter◼ Individual life bottomed out while recovery momentum is slow
:Net increase of AP of policies-in-force for GCL (JPY millions)

Net increase ofindividual life

:Net increase of AP of policies-in-force for individual life (JPY millions)

310

428

306

348

449

Net increase of
GCL

408

AP of
policies-in-force

2,570¥29,507mn

276
27,25528,75027,872

YoY

20.9％

+

24,4082023/06

2023/092023/122024/032024/06（YY/MM）

3

Summary IFRS P/L◼ Insurance service results and net income resulted in¥2,340mn and ¥1,887mn, respectively(JPY millions)

Items
Insurance service results

1.

FY2023/1Q

FY2024/1Q

Change

2,274

2,340

66

Financial results1

367

338

(29)

Other results

(120)

(57)

62

Profit before tax

2,521

2,621

99

Net income attributable toowners of the Company

1,765

1,887

121

Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense

4Insurance Service Results1◼ 26.3% progress rate for business forecasts and steadily growing:Insurance service results (fiscal year, JPY millions):Insurance service results (1Q, JPY millions)

Business forecasts

8,222
7,216

6,618

6,606

8,900

2

Progress rate
for the business
forecasts

26.3％

2

2,340ｍn

￥

1.
2.

1,562

1,741

1,651

2020

2021

2022

2,274

2

YoY

＋2.9％

2023

Figures for FY2021 and earlier are for reference use only as they are before date of transition to IFRSCOVID-19 related claims was ￥1,378mn in FY2022 and ￥36mn in FY2023. It is also included in FY2024, but detailed calculation has not been performed.

2024/1Q(fiscal year)

5Insurance Service Results Analysis◼ While YoY growth is limited, GCL business recorded profit for the first time
◼ Aim for full-year profit growth by increasing CSM release and GCL results
Insuranceservice results(JPY millions) Insurance
service results
Items

FY2023/1Q

FY2024/1Q

ChangeExpected claims minus incurredclaims

368

46

(321)

Risk adjustment release

433

391

(42)

CSM release

1,677

1,864

187

Reinsurance results

(157)

(211)

(53)

(47)

(23)

24

ー

272

272

2,274

2,340

66

OthersResults from GCL

1

Insurance service results

Results from
GCL
Others

CSM release

187

Expected
minus incurred Risk
adjustment
release

(321)

24

272

Reinsurance
results

(53)

(42)

YoY

+¥66mn2023/1Q
1.

2,340

2,274

Insurance service results related to contracts measured under the Premium Allocation Approach (Excluding reinsurance results)

2024/1Q
6

New Management Indicator “Comprehensive Equity”◼ Having changed our management indicator from EEV to“Comprehensive Equity” based on IFRS, aim to achieve ¥200-240bn
in fiscal 2028
European Embedded Value（EEV）
Conceptually similar

Comprehensive Equity (CE)GCL contracts value1
CSM2（after-tax）

Value of in-force
business
IFRS Equity3
Adjusted net worth
1.
2.
3.

The value of future IFRS earnings for GCL policies-in-force (PAA applied) including future renewals as of the valuation date.
Aggregation of insurance contracts and reinsurance contracts with tax effect (28%) adjusted.
Attributable to owners of the Company

7Movement of Management Indicators◼ Management indicators have been strongly growing at a CAGR of 19%
Comprehensive
EquityEuropean Embedded Value（EEV）1¥1,991¥2,006: GCL contracts value (JPY millions)

159,802

161,022: CSM after tax (JPY millions)

6,709

7,894

62,222

62,07790,87091,05024/03

24/06 （YY/MM）: EEV (JPY millions)¥1,788: IFRS Equity (JPY millions)
124,666: CE per share（JPY）2¥441

18,547

2012/03 13/03

14/03

15/03

16/03

17/03

18/03

19/03

20/03

21/03

22/03 23/03

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.
2. EEV per share before March 2023

8

Changing Factors of Comprehensive Equity◼ Increased due to GCL contracts value and net income, though affectedby rising interest rates
Equity movement(JPY millions)

CSM (after tax) movement

CE

159,802

New business
CSM

800

Interest
accretion

163

Impact ofassumptionchanges, etc.

Net income
attributable to ownersof the Company

GCL
movement

1,887

CE

GCL contracts value
movement

165

1,185

Amortization ofCSM

161,022
Other
comprehensive
income(1,707)(1,274)2024/032024/06 (YY/MM)
9

Achievements in GCL business

Rebranding

Tech & Services

Embedded◼ With the revision of premium rate in July and further growth
in mortgage loans, expecting to grow profits in fiscal 2024

au Jibun Bank’s rapid growth of mortgage loan
Mar. 2024¥4.0tnContribution to key indicators (FY2024/1Q)

Jun. 2024¥4.5tnCorporate Value

Nov. 2023¥3.5tnIn 8 years and 7 months,
the amount exceeded

Jun. 2023¥3.0tn¥4.5tnComprehensive Equity

Nov. 2022

7,894¥2.5tn¥Mar. 2022¥2.0tnmn1

Jun. 2021¥1.5tnGrowthProfitability

AP of policies-in-force

Insurance service
results

Sep. 2020
May 2019¥0.5tn¥1.0tn

3,735

¥
1.
2.
3.

GCL contracts value in Comprehensive Equity as of the end of June 2024
Annualized premium of policies-in-force for GCL as of the end of June 2024
Insurance service results related to contracts measured under the Premium Allocation Approach (Excluding reinsurance results)

mn2

272

¥

mn3
10

Progress in GCL business

Rebranding

Tech & Services

Embedded◼ The revision of premium rate resulted in increase of AP ofpolicies-in-force◼ Aim for expanding partner banks for further growth
Future initiatives

Effect on premium rate revision

July 2024:AP of policies-in-force for GCL (JPY millions)

Revision ofpremium rate

July 2023

6,068

¥

Expansion of partner banks
With the tailwind of DX in

mn1

banking industry, aim for
expanding new partner banks

Launch of GCL

3,735
2,384

au Jibun Bank Initiatives
Support strengthening
mortgage loan competitivenessthrough developing our better

products and services
2023/07
1. Preliminary report from “July 2024: MONTHLY DISCLOSURE”

2024/06 2024/07（YY/MM）11

Launch of New Product, Dementia

Rebranding

Tech & Services

Embedded◼ Launched dementia insurance in April 2024 and actively conductedpublicity campaigns in collaboration with Eisai
Insurance with the age of dementia

Dementia

Initiatives•

Started “Brenavi” on LINE
for dementia information•

Conducted survey on
dementia•

Held public event with Eisai

Co-developed dementia insurance supporting
early detection and treatment

12

Enhancement of Promotion Message

Rebranding

Tech & Services

Embedded◼ Renewed marketing message in ads for being more chosen by theyounger generation“Your insurance, your choice““YOU change the value of life insurance”

13Impact from Rising Interest Rates◼ Impact on Comprehensive Equity and net income is limited◼ Stable interest income is expected from high turnover asset
management of short duration bonds
Impact on corporate value & net income

Impact on CE

Sensitivity to interest ratechanges in IFRS equity is limited
due to protection type products
line-upOpportunity for interest income
Expected stable growth of interest income
237: Interest income (JPY millions)1
178

120

Impact on
IFRS-based net
incomeBy shortening the duration of
yen bonds and holding them in“OCI“ in B/S, the impact onfinancial results is mitigated

74

76

74

68

72

79

2022/06 2022/09 2022/12 2023/03 2023/06 2023/09 2023/12 2024/03 2024/06 (YY/MM)
1. Figures does not include the effect of currency hedging cost14Consolidated Business Forecasts for FY2024◼ Remains unchanged since May 2024
Profitability

Growth(JPY millions)(JPY millions)

AP of policies-in-force

GCL
approx. 3,500

Business forecasts

34,000Insurance service results

IndividualBusiness forecasts

8,900

8,222

approx. 1,700

28,7502024/03

FY2024FY20232025/03

FY2023(JPY millions)

Results

FY2024
1Q Results

Forecasts

Annualized premium of policies-in-force

28,75029,50734,000Insurance revenue

24,6986,776

30,000Insurance service results

8,222

2,340

8,900

Net income attributable to owners of theCompany

5,734

1,887

6,200

15

FY2024-2028 Mid-term Business Plan
Growth Strategy
Priority Areas

Goals in Fiscal 2028
Management Goal

Comprehensive Equity (CE) : ¥200-240bn
Rebranding

Embedded

中期計画
Tech & Services

Financial Targets

Stock price：¥3,000+
Annual growth rate of CE per share：approx. 10%

Non-financial Targets (Human capital)
Overall engagement score: continuous improvement

Human Resources Strategy• Promote organizational transition to focus on priority areas• Create a virtuous cycle of employee growth and business growth• Maintain and strengthen an organizational culture based on the
LIFENET Manifesto

Diversity

GrowthOpportunities

Ratio of decision-makers：
Women 30%+, Under 30s 15%+
Engagement score (growth):
continuous improvement
16

Initiatives to Improve Market Evaluation◼ P/CE ratio remains below 1x and market evaluation needs improvement◼ Aim to increase corporate value and improve market evaluation
Stock price / CE per share (P/CE)
2.00

Improvement market evaluation

2,000

1,800

¥1,512

1¥1,539

1,600

1,400

Adopt corporate value
indicators linked to IFRS

Commit to targets andits time frames

Transit to
the TSE Prime Market

Strengthen
governance systems

1,200

1.00

1,000

800

Stock
Price

¥602

2

0.49

P/CE
Ratio

0.76

0.77 X
Below
1.00X

400

200

0.00

0

2019年

2019/03
3月末

1.
2.

600

2020年

’20/033月末

2021年’21/033月末

Closing price as of August 13, 2024
Price/EEV per Share before March 2023

2022年

’22/033月末

2023年’23/03
3月末

2024年

2024年

’24/03’24/083月末
8月(YY/MM)

17

For Achieving Mid-term Business Plan
◼ Aim to achieve Comprehensive Equity of ¥200-240bn in FY2028 byrealizing sustainable growth through investment in priority areas
Fiscal 2025

CE growth image¥200-240bn
Goals in Fiscal 2028

Aim for TSE
Prime Market

Stock price159
124

3,000+

133¥

Annual growth rate of
CE per share10%

approx.
2022/032023/032024/032029/0318

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.

19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 1
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).

22

Glossary 2
Glossary

Explanation

Comprehensive Equity(CE)

An indicator defined by the Group. It is the sum of “Equity (attributable to owners of the Company)” on the IFRS balance
sheets, “CSM”, a liability representing unearned profit that the Group expects to earn as it provides insurance services(insurance contracts and reinsurance contracts are aggregated and tax-adjusted), and "GCL contracts value". We havedefined it as the indicator that represents the corporate value of the Group as it includes the value of future profits ofpolicies-in-force.

Group Credit Life
Insurance (GCL)
contracts value

An indicator defined by the group. It is the value of future IFRS earnings for GCL policies-in-force including future renewals
as of the valuation date.

Premium Allocation
Approach (PAA)

A simplified approach which can be applied for measuring insurance contracts with short coverage periods which is defined
under IFRS17. We applied it for GCL contracts which have 1 year insurance period.

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.

23

Individual life

Breakdown of Policies-in-Force

2023/06

Component
ratio

576,852

609,888

100%- Term Life

280,789

297,565

49%- Whole-life Medical

158,403

166,558

27%- Long-term Disability

68,50770,242

12%- Cancer

61,50968,455

11%- Other1

7,644

7,068

1%

3,675,820

3,842,513

365,865

386,503

Number of policies-in-force

Sum insured of policies-in-force2(JPY millions)

Number of policyholders
1.
2.

2024/06

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

24

Individual life

Annualized Premium / Number of New Business:AP1 of new business (JPY millions):Number of new business
1,166
1,104

1,137

1,123
1,051

991

981
934

933

969
923

889
820
747
639

28,136

26,91823,36927,553

2Q

22,50622,1643Q

2020年度FY2020
1.

4Q

1Q

675

29,864
26,167

24,41023,92822,612

22,12818,471

1Q

734

2Q

3Q

2021年度FY2021

4Q

1Q

2Q

3Q

2022年度FY2022

4Q

1Q

20,934

16,036

16,993

2Q

3Q

2023年度FY2023

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.

4Q

18,634

1Q
2024年度FY202425

Individual life

Surrender and Lapse Ratio:Surrender and lapse ratio1（%）
7.6%

7.1%
6.3%
5.9%
5.5%

5.5%

1Q

2Q

3Q

2020年度FY2020
1.

4Q

1Q

2Q

6.6%

6.9%
6.4%

6.0%

3Q

2021年度FY2021

4Q

1Q

6.3%

6.4%

2Q

3Q

4Q

6.8%

1Q

6.6%

2Q

2022年度FY2022The 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.

6.3%

3Q

2023年度FY2023

6.4%

4Q

6.1%

1Q
2024年度FY202426

Individual life

Insurance Acquisition Cash Flows (IACF) Efficiency:Insurance acquisition cash flows / AP of new business:Insurance acquisition cash flows per new business (JPY thousands)

Fiscal year1

Quarter
138
129

118

117

3.3

3.0

2.9

82

’23

’24/1Q(fiscal year) 2023/1Q

9,377

2,210

(JPY millions)

2.7

118

121
3.5

105
97

138

3.5
3.1

3.0

2.4
2.0

(fiscal year)

2020

’21

IACF

8,339

9,854 10,390(JPY millions)

1.

’22

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

IACF

2,177

’23/2Q’23/3Q’23/4Q’24/1Q

2,222

2,072

2,904

2,210
27

Operating Expenses Ratio1:Operating Expenses Ratio（％）:Operating expenses excl. insurance acquisition cash flows (JPY millions)Fiscal year2

19.4%

Quarter

20.7%
18.4%

17.8%
4,715

18.9%

16.7%

17.4%

18.6%

18.9%

16.7%

4,935

3,896

3,047

1,215

(fiscal year)

1.
2.

2020

’21

’22

’23

’24/1Q(fiscal year)

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

1,146

1,171

1,280

1,337

1,215

2023/1Q’23/2Q’23/3Q’23/4Q’24/1Q

28

Summary IFRS P/L (Quarter)(JPY millions)

Items

Note

2,274

1,813

2,186

1,947

2,340

Due to improvement in GCL
results

Expected claims minus incurredclaims1

368

(104)

331

189

46

Incurred claim payments forindividual life increased

Risk adjustment release

433

438

397

407

391

CSM release

1,677

1,758

1,755

1,864

1,864

Reinsurance results

(157)

(225)

(52)

41

(211)

Changed due to decrease in GCLclaim payments

Results from GCL2

－

(4)

(217)

(445)

272

Due to decrease in claim
payments for GCL

Financial results3

367

(300)

209

279

338

Other results

(120)

(108)

(106)

(191)

(57)

Profit before tax

2,521

1,404

2,289

2,035

2,621

Net income attributable toowners of the Company

1,765

993

1,606

1,368

1,887

Insurance service results

1.
2.
3.

FY2023/1Q FY2023/2Q FY2023/3Q FY2023/4Q FY2024/1Q

Applied only for individual life
Insurance service results related to contracts measured under the premium allocation approach (excluding reinsurance results)
Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense

Due to increase in insurance
service results

29

Breakdown of Insurance Service Results(JPY millions)

Items

FY2023（Ref.）Fiscal Year

１Q

Insurance revenue

24,698

5,500

6,776

Expected claims

10,464

2,561

2,694

Risk adjustment release

1,678

433

391

CSM release

7,056

1,677

1,864

Recovery of IACF

3,647

869

990

Others

(150)

(41)

(34)

Premium income of GCL1

2,004

－

870

Insurance service expenses

16,081

3,068

4,225

Incurred claims（Individual life）

9,679

2,192

2,647

Incurred claims（GCL）

2,671

－

597

Amortization of IACF

3,647

869

990

83

6

(10)

Reinsurance results

(394)

(157)

(211)

Insurance service results

8,222

2,274

2,340

Others1.

FY2024
1Q

Insurance revenue related to contracts measured under the premium allocation approach30

Breakdown of Financial Results◼ Interest income rose due to increased foreign securities holdings,
while valuation gains decreased as a result of stock sales(JPY millions)

Items

FY2023/1Q

FY2024/1Q

ChangeInvestment results

392

360

(32)

Interest income

72

237

164

Impairment losses on financial assets, net

(0)

(3)

(3)

Other investment income

320

126

(193)

Insurance finance income (expense)

(29)

(26)

3

Reinsurance finance income (expense)

4

4

(0)

367

338

(29)

Financial results

31

Detail of Bond Portfolio1
As of June 30, 2024

JPY Bonds
Duration2

Foreign Currency Bonds(JPY millions)

Available-for-Sale

Held-to-Maturity

16,92628,44545,372

4 years

8 years

6 years

12,089—Duration2

1.
2.

Total

12,0894 years

Non-Currency Hedged

3,570

—

3,570

Currency Hedged

8,518

—

8,518

Based on J-GAAP balance sheet
Calculated by Lifenet

32

CSM Movement◼ Decreased due to slower growth in new business CSM for individual life

Interest
accretion
New business
CSM

1,124

CSM,
beginningof the period

92,173240(JPY millions)

Impact ofassumptionchanges, etc.

Items

221

(1,864)

Recorded as
insurance revenue
on PL

2024/03

92,173New business CSM

3,473

1,124

Interest accretion

842

240

Assumption changes, etc.

11,309221

Amortization of CSM(7,056)(1,864)

CSM, end of the period

92,17391,894CSM,
end of the period

91,894FY2024/1Q

83,604

CSM, beginning of the period

Amortizationin current
periodFY20232024/06（YY/MM）33

CSM Future Allocation◼ Stable profits will be realized over long period from in-force CSM◼ Aim for CSM release growth by adding CSM generated from future acquired
new business
Future allocation of CSM(JPY billions)
Expected timing when CSM is recognized in PL
AmountActualIn-force
CSM

As of Jun. 2024
(A)

91.8

A＋year 2

A＋year 3

A＋year 4

A＋year 5

7.2

6.8

6.5

6.3

6.0

58.8

X

+
X

X

X

XX

X

X

X

X

XX

X

X

X

XX

X

X

XX

X

XX

XX

XXX

+

Forecast

New
Business
CSM(B)

A + year 1

XX

A + year 2

XX

A + year 3

XX

A + year 4

XX

A + year 5XX

CSM release（A+B）

A+year 6
and moreA+year 1

X

XX

XX

XX

XX

34

Comprehensive Equity Sensitivity Analysis1◼ Impacts of changes in assumptions (sensitivities)
Changes in Comprehensive Equity (CE)
as of June 30, 2024
(JPY millions)2.

Of whichchanges in CSM2

% changes

161,022ー

62,077

0.5% increase in risk-free rate

(3,676)(2.3%)

ー

0.5% decrease in risk-free rate

4,051

2.5%

ー

10% decrease in equity and real estatevalue and other(422)(0.3%)

ー

10% decrease in operating expenses rate

5,873

3.6%

4,963

10% decrease in surrender and lapse rate

1,720

1.1%

1,519

5% decrease in claim incidence rates for life
business

6,490

4.0%

6,675

10% decrease in non-renewal rate

5,629

3.5%

5,629

Comprehensive Equity as of June 30, 2024

1.

Changes in CE

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.
Aggregation of insurance contracts and reinsurance contracts with tax effect (28%) adjusted.

35

Changing Factors of EEV1
◼ Though affected by rising interest rate, increased due to adjusted
incremental EV
Assumptionchanges(JPY millions)
Expected
existing
business
contribution

441

147

Operatingexperiencevariances

845

Value ofnew business

146,991

148,897
Economic
variances
and assumptionchanges

(758)

1,229

Adjusted incremental EV22,517mn

total ¥

2024/032024/06

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.
2. Adjusted Incremental EV accurately indicates our business growth during a certain period within increase in EEV.

(YY/MM)36

Solvency Margin Ratio Calculation
As of June 30, 2024

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

Solvency margin ratio
1,892.9％
Cash and deposits
16,485

Money held in trust
14,494=

Total amount of solvency margin<numerator>
43,667

Reserves for outstanding claims

1,502

Policy reserves
60,603
Contingency reserves 4,648

Securities
45,958

Excess over the fullZillmerized reserve 18,095
Price fluctuation reserves 145
Deferred tax liabilities onavailable-for-sale securities 1－

Valuation difference on
securities available-for-sale(261)1

Tangible fixed assets

59
Intangible fixed assets
1,786

Other assets
6,030
1.
2.

Capital stock andother assets
21,038

Net assets
20,777

Total amount of risk/2< the denominator>
4,613/2【Ref.】
Consolidated
Solvency margin ratio

2,000.1 %Other liabilities
1,784
Deferred tax liabilities excluding
available-for-sale securities 0÷(JPY millions)

Insurance risk R1 2,490
Risk of change in mortality rate (calculated based on value ofpolicies in force)

Add liabilities
with strong
capitalcharacteristics
such as pricefluctuation
reserves andcontingency
reserves

Medical insurance risk R8 960
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 2,767[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 186
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.

37

IFRS Reporting◼
◼

IFRS adoption better presents 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

38

Summary J-GAAP P/L & B/S(JPY millions)(JPY millions)
FY2023

FY2023/1Q

FY2024/1Q

Items

35,964

7,929

10,437

Total assets

Insurance premiums
and other

34,264

7,693

9,580

Ordinary expenses

40,634

8,348

10,984

Insurance claims andother15,547

3,150

4,944

Provision for policy
reserves and other

9,472

1,773

2,048

Items

Ordinary income

FY2023

FY2024/1Q

84,19484,814

Cash and deposits

20,00916,485

Money held in trust

13,35814,494

Securities

42,99245,95863,13064,03760,46962,106

Total liabilities

12,607

2,950

3,034

Policy reserves andotherOrdinary profit(loss)(4,670)

(418)

(546)

Total net assets

21,063

20,777

Net income (loss)(4,720)

(429)

(552)

Retained earnings(31,643)(32,196)

Operating expenses

39

Dividend Policy◼ Aim for the increase in total shareholder return by capital gain1
ProfitPolicies-in-force & profit and loss（illustrative image）: Policies-in-force: New business: J-GAAP profit and loss

Retained earnings are realized aftergenerating profit

Marketing expenses are recordedin lump-sum on the initial year of
insurance period
Loss

1.

Lifenet has yet to determine its specific dividend policies and dates for the start of distributing retained earnings, as we prioritize strengthening our growth base to increase mid to long term profitability.

40