Securities Code: 7157
TSE GrowthPresentation Material
for Investors
Fiscal 2023

May 14, 2024

Key Highlights
FY2023◼ Annualized premium of policies-in-force up 20% YoY, insurance
service results up 24% YoY and EEV up 18% YoY
Future Initiatives◼ Established new Management Policy, FY2028 mid-term business plan
and Outcome goal
◼ Set Comprehensive Equity (CE) as new key indicator
Aim to achieve CE of ¥200-240bn as new management goal
◼ Enhance governance, changing the the Board of Directors with amajority of independent Outside Directors1◼ Carry out initiatives to improve market evaluation
1.

Election of Directors is subject to approval at the 18th Annual General Meeting of the Shareholders on June 23, 2024.

1

Table of Contents

１.

Financial Results for Fiscal 2023

２.

New Management Policy and Mid-term Plan

３.

Future Initiatives to Improve Market Evaluation

2

Fiscal 2023 Key Highlights
Key Indicators
Corporate Value

GrowthProfitability

EEV

Annualized premium1of policies-in-force

Insurance service
results(European Embedded Value)¥

146,991mn(YoY 117.9%)¥

28,750mn(YoY 119.6%)¥

8,222mn(YoY 124.2%)

Notable Achievements◼

Implemented new initiatives aimed at sustainable growth over the mid-term,
including GCL2 and alliance with the SMBC Group◼

Launched Dementia Insurance co-developed with Eisai in Apr. 2024◼

Awarded #1 direct life insurer for 4th consecutive year in J.D. Power3

1. 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 (The same will apply hereafter).
2. GCL stands for Group Credit Life Insurance
3. J.D. Power 2021-2024 Japan Life Insurance Contract Customer Satisfaction Study <Direct Segment>3

Annualized Premium of Policies-in-Force◼ Achieved significant growth of 19.6% YoY with the addition of GCL:AP1 of policies-in-force for GCL (JPY millions)¥:AP1 of policies-in-force for individual life (JPY millions)

18,71321,511

24,03328,750mn
3,326Group credit
life insurance

25,424

Individuallife insurance

YoY
+5.8％

15,5142019 4Q
2020/03
1. Annualized premium

2020 4Q
2021/03

YoY+19.6％

2021 4Q
2022/032022 4Q
2023/032023 4Q
2024/03（YY/MM）

4

Policies-in-Force Movement◼ GCL remained strong with net increase of ¥449mn in the quarter◼ Individual life keep recovery momentum, improving QoQ
Net increase of
GCL
Net increase of:Net increase of AP of policies-in-force for GCL (JPY millions):Net increase of AP of policies-in-force for individual life (JPY millions)individual life

428

306

449

310

2,570

AP of
policies-in-force¥28,750mn

276

375

27,872

27,255

YoY

19.6％

+

24,033

24,4082023/032023/06

2023/092023/122024/03（YY/MM）

5

Summary IFRS P/L◼ Insurance service results and net income resulted in¥8,222mn and ¥5,734mn, respectively(JPY millions)

Items

1.
2.

FY20222

FY20232

ChangeInsurance service results

6,618

8,222

1,604

Financial results1

(452)

555

1,008

Other results

(822)

(527)

295

Profit before tax

5,343

8,251

2,908

Net income attributable toowners of the Company

3,562

5,734

2,171

Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense
FY2022 includes ¥1,378mn and FY2023 includes ¥36mn of insurance claims and benefit related to COVID-19

6

Insurance Service Results1◼ Significantly increased 24.2% YoY to ¥8,222mn despite not achieving
the business forecasts
Business forecasts

8,600

8,222ｍn:Insurance service results (fiscal year, JPY millions)

2

￥
7,216

vs. forecast

6,618 2

6,606

95.6％

5,419

YoY

＋24.2％

2019
1.
2.

2020

2021

Figures for FY2021 and earlier are for reference use only as they are before date of transition to IFRSFY2022 includes ¥1,378mn and FY2023 includes ¥36mn of insurance claims and benefit related to COVID-19

2022

2023

(fiscal year)

7Insurance Service Results Analysis◼ Negatively affected by GCL payments more than expected andtemporary impact of reinsurance results
CSM release(JPY millions)
Items

FY2022

FY2023

ChangeExpected claims minus incurredclaims1(1,118)

784

1,902

Risk adjustment release

1,698

1,678

(20)

CSM release

6,401

7,056

654

Reinsurance results

(239)

(394)

(155)

Others

(123)

(234)

(110)

ー

(666)

(666)

6,618

8,222

1,604

Results from GCL

2

Insurance service results

Expected
minus incurred

1,902

Risk
adjustment
releaseInsuranceservice results

6,618

Reinsurance
Othersresults(155) (110)

Insuranceservice results

8,222

Results from
GCL
Incl. temporary
adjustment of¥(160)mn in 2Q

(666)

YoY

+¥1,604mn

2022 (fiscal year)
1.
2.

(20)

654

Applied only for individual life. FY2022 includes ¥1,378mn and FY2023 includes ¥36mn of insurance claims and benefit related to COVID-19
Insurance service results related to contracts measured under the Premium Allocation Approach (Excluding reinsurance results)

2023
8

European Embedded Value1◼
◼

EEV and value of in-force business have been strongly growing
at a CAGR of 19%2 and 30%, respectively since IPO
EEV per share continued its growth trend, offset dilution by capital raising in Sep.
¥1,788¥1,831¥1,673

146,991¥1,570: Value of in-force business (JPY millions)¥1,430: Adjusted net worth (JPY millions)

124,666¥1,239: EEV/share (JPY)116,604

95,140121,740

73,431
91,43563,378106,299

76,149¥441
48,51860,87818,547
5,122
13,425

2012/03’13/03’14/03’15/03’16/03’17/03’18/03

14,86012,553’19/03’20/0318,990’21/0325,168’22/0318,367’23/0325,251’24/03 (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.
2. The calculation includes ¥3,040mn in proceeds from a third-party allotment in May 2015 and ¥9,005mn from overseas public offering in July 2020 and ¥9,771mn from overseas public offering in September 2021 and ¥9,770mn frompublic offering and third-party allotment in September 2023.

9

Changing Factors of EEV1
◼ Increased due to the growth of VoNB including GCL, the improvementof opex ratio, revision of mortality assumptions and capital raising
146,991(JPY millions)

Adjusted incremental EV2
Expected
existing
business
contribution

Value ofnew business

1,472

6,730

Incl.
VoNB of GCL

124,666

Operatingexperiencevariances

Assumptionchanges

3,132

Adjustments
Economic
to the values3
variances
as of Mar. 31, 2024
and assumption
9,881
changes

357

750

Raised new capitalin Sep. 2023

5,251

8,953mn

total ¥

2023/032024/03 (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.
2. Adjusted Incremental EV accurately indicates our business growth during a certain period within increase in EEV.
3. Item for change in capital

10

New Product Co-developed with Eisai◼ Launched new product in Apr. 2024 to address social issues
related to dementia
Started “Brenavi” on LINE
for dementia information and services

New

Dementia

Approx. one in five people aged 65 or older will be livingwith dementia by 2025 in Japan.
Co-developed dementia insurance supports early detection
and treatment of dementia and mild cognitive impairment.
11Key Efforts in Individual Life
◼ Carried out initiatives to accelerate growth of in-force businesseven in environment of declining demand
Direct BusinessInitiatives

Partner BusinessInitiatives

Implemented new various measures
for younger generation

Launched new products embedded into point
ecosystem“au Life Insurance” with Ponta Points

J.D. Power Japan Life Insurance
Contract Customer Satisfaction Study＜Direct Segment＞1

1st

for 4th Consecutive Year

“Insurance with V-points”
AP of policies-in-force

Dec. 2023
Launched
Previous products(without V-points)

2023年3月
Mar. 2023

1.

J.D. Power 2021-2024 Japan Life Insurance Contract Customer Satisfaction Study <Direct Segment>

2023年6月
Jun. 2023

2023年9月
Sep. 2023

2023年12月
Dec. 2023

2024年3月
Mar. 2024

12

Key Efforts in GCL
Achieved strong growth in in-force business although higher than expected payments
Forecast to record profit from FY2024 due to planned premium rate revisions◼
◼

au Jibun Bank’s rapid growth of mortgage loan
Nov. 2023¥3.5tnIn approx. 8 years and4 months,
the amount exceeded

Contribution to key indicators1Mar. 2024¥4.0tnJun. 2023¥3.0tn¥4tn

Nov. 2022

AP ofpolicies-in-force+ ¥3,326mn

EEV(VoNB)+ ¥5,251mn¥2.5tnMar. 2022¥2.0tnJun. 2021¥1.5tnSep. 2020¥1.0tnMay 2019¥0.5tn1.
2.

Insurance Service
Results

As of March 2024
Insurance service results related to contracts measured under the Premium Allocation Approach (Excluding reinsurance results)

(666)

¥

mn

2

13

Consolidated Business Forecasts for FY2024◼ Expect ¥8.9bn in insurance service results and ¥6.2bn in net income(JPY millions)

GrowthAP of policies-in-force

GCL
approx. 3,500

Business forecasts

34,000Individual(JPY millions)

Profitability

Insurance service results

Business forecasts

8,900

8,222

approx. 1,700

28,7502024/032025/03(JPY millions)

FY2023

FY2023 Results

FY2024FY2024 Forecasts

Annualized premium of policies-in-force

28,75034,000Insurance revenue

24,69830,000Insurance service results

8,222

8,900

Net income attributable to owners of theCompany

5,734

6,200
14

Table of Contents

１.

Financial Results for Fiscal 2023

２.

New Management Policy and Mid-term Plan

３.

Future Initiatives to Improve Market Evaluation

15

Committed to Outcome Goal
Outcome goal

A Societywhere next generations can be nurtured
with confidence in the future
we contribute to creating a future where next generations can be nurtured
by society as a whole through delivering the value of insurance based on the LIFENET Manifesto.

Outcome Reference Indicator1
Market penetration rate of

1 online life insurance
1.

See details on page 37

Prospect

2 for the future life

3 Ease of raising children
16New Management Policy

MissionHelp our customers embrace life
more fully by offering comprehensible,
cost-competitive and convenient
products and services

VisionBe the leading online life insurer
creating the future of life insurance
Lifenetter Values

Value-Manifesto driven-Ownership-Teamwork-Growth mindset-Be ambitious
17

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
18

Our Business Environment◼ External environment changes will be a major tailwind for business growth１

Expansion of online life
insurance market• COVID-19 accelerated online
financial services• Online insurance players increased2

Younger generation ×
technologies• Emerging new technologies
penetrate a wide rage of consumers,
starting with younger generations

3

Trend of financial
ecosystem• High interest in online insurance
business from other sectors

決済
Payment

Intention to purchaselife insurance online1

18.0%

AI

SNS

App

Individual
Number
SystemRatio of respondents who have intention topurchase online
Ratio of respondents who
10.9
purchased online

2.8
2010

1.

2013

2016

2019

4.4%
2022

Source: Survey on Life Protection by the Japan Institute of Life InsuranceBanking
銀行

Insurance

Ecosystem

Loan

証券
Securities

19

Priority Areas for Further Growth◼ Three priority areas to move toward the next stage of growth

Rebranding

Embedded

Qualitative changes inInternet direct businessBusiness enhancementwith partners

DirectTech & Services

Partner

GCL

Refinement of value provided
GCL

Partner
Direct20

Individual：Direct Business

Rebranding

Tech & Services

Embedded◼ Aim for further growth by updating the Lifenet brand and being uniquefor younger generation
Focus areas of marketing centered on younger generation

Rebranding

Number of newpolicies by age group

Nurture Marketing
Increase
preference
Enhancement of
Products &Services

20s-30s
FY2023Future21

Individual：Partner Business

Rebranding

Tech & Services

Embedded◼ Accelerate growth by embedding our business into partners’ ecosystem

Development of
new partners

Telecommunications

Deepening ties with existing partners• Initiatives to enhance business synergy inpartners’ ecosystem

RetailDevelopment of new business partners

Payments
Internet
services
Healthcare• Alliances with companies having
a broad customer base, attractive brands,
and extensive data

22

Group Credit Life Insurance

Rebranding

Tech & Services

Embedded◼ Aim for business expansion by alliance with au Jibun Bank anddevelopment of new partner banks
Deepening of alliance with au Jibun Bank

Expansion of partner banks• Contribute to enhancing competitiveness of mortgage
loan through develop our high-quality insurance
products and services• Aim to develop new partner banks by capitalizing on
the shift to DX in the mortgage loan business in thebanking industry
The proportion of institutions working on
digitalization of administrative processes3

＊1

43.5%

＊2

37.5
33.7

2020年
2020
1. The 2023 Oricon Client Satisfaction Survey hosted by Oricon Inc.
2. Searched by Mogecheck, online mortgage comparison service
3. Source: Japan Housing Finance Agency ” Mortgage Lending Trends Survey”

2021年
2021

2022年
2022

Year

23

HR Strategy for Business Growth◼ Further strengthen initiatives for human capital based on diversity andgrowth opportunities
Human Resources Strategy
focus on

Policies regarding HR

Diversity & Growth Opportunities
FY2028 Mid-term business plan
Cross-organizational
systemDevelopment throughchallenges

Strengthen culture based on LIFENET Manifesto
Non-financial Goals

Management Policy

Overall・Diversity・Growth opportunities

Value

Lifenetter
Values24

New Management Indicator “Comprehensive Equity”◼ Adopt “Comprehensive Equity” as new management indicator
representing corporate value to replace EEVManagement Goal

Comprehensive Equity (CE) Aim to achieve ¥200-240bn in FY2028
European Embedded Value（EEV）
Conceptually similar

Comprehensive Equity (CE)GCL contracts value1¥6.7bnCSM2（after-tax）

Value of in-force
business¥62.2bn¥121.7bn

IFRS Equity3
Adjusted net worth¥90.8bn¥25.2bn¥146.9bn

1. The value of future IFRS earnings for GCL policies-in-force (PAA applied) including future renewals as of the valuation date.
2. Aggregation of insurance contracts and reinsurance contracts with tax effect (28%) adjusted.
3. Attributable to owners of the Company¥159.8bn

as of 2024/03
25

Table of Contents

１.

Financial Results for Fiscal 2023

２.

New Management Policy and Mid-term Plan

３.

Future Initiatives to Improve Market Evaluation

26

Current Market Evaluation◼ Market evaluation has room for improvement while our corporate value
has been growing strongly
EEV per Share

EEV/share (JPY)EEV (JPY millions)¥1,788¥1,673

Price/EEV per Share (PEV)
2.00¥1,831
146,991¥1,570¥1,430Stock Price

124,666
116,604¥1,239PEV ratio below 1x¥1,512

95,140¥1,26673,431

1.00¥1,162

0.65
¥602

19/03

0.83 X

0.81

63,378

20/03

21/03

22/03

23/03

24/03（YY/MM）

0.49

¥599

¥561

0.42

0.34

0.00
19/03

20/03

21/03

22/03

23/03

24/03（YY/MM）

19/03

20/03

21/03

22/03

23/03

24/03（YY/MM）27

Major Initiatives to Improve Market Evaluation
Major initiatives

Key points• Increase the credibility of corporate value indicators by changing
from "EV" to "Comprehensive Equity"

1

Adopt corporate value indicators
linked to IFRS

2

Commit to targets and its timeframes• Align our shareholders and investors with our interests by committing
to per share value and its time frames

3

Transit to the TSE Prime Market• Aim to expand the investor base and improve market liquidity bylisting on the TSE Prime Market by around 2025

Strengthen governance systems• Strengthen the function of the Board of Directors as a Monitoring
Board (see the next page for details)

4• Enable investors to compare with global peers applying IFRS17

28

Further Strengthening of Corporate Governance◼

Shift to structure with a majority of Independent Outside Directors¹ with aim of strengthening
the supervisory function of the Board of Directors and further enhancement of the separationof supervisory and executive functions
Ratio of Independent Outside Directors
after change

Before10 Directors（5 Outside）

2

Independent

OutsideAfter

7 Directors（5 Outside）

Independent
outsideInside57%

Non-independent
outside1

Ratio of Female Directors
after change
FemaleMale

25

Independent

4

29%

Outside1.

Election of Directors is subject to approval at the 18th Annual General Meeting of the Shareholders on June 23, 2024.

29

Increase in Shareholder Value over Mid-to-long Term
◼ Aiming to both increase corporate value by expanding business scale
and improve market evaluation
Increase in corporate value（CE）

Priority
Areas

Scaling up• Re-growth in individual life +expansion of GCL• Pursuit of upside

Improvement of
profitability•Tech & Services

Improvement market evaluation

Adopt corporate value
indicators linked to IFRS

Commit to targets andits time frames

Transit to
the TSE Prime Market

Strengthen
governance systems•Rebranding•Embedded• Increase in marketing efficiency• Improvement of opex ratio as
business scale-up

Investment in Human capital
30

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

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

Aim for TSE
Prime Market

Stock price
159

124

3,000+

133¥

Annual growth rate of
CE per shareapprox.
2022/032023/032024/0310%2029/0331

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.

32

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).

35

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.

36

Outcome Goal and Reference Indicators
Outcome Goal

A Society where next generations can be nurtured
with confidence in the future
Reference Indicators*1

01

Market penetration rateof online life insurance

We offer simple coverages, affordable
premiums, and convenient procedure online,
and contribute to expansion of online life
insurance market.

02

Prospect for the future life

We want customers to leave their worries
about the future to convenient and useful
online life insurance and use the money andtime they have saved to help them move
forward in their lives.

03

Ease of raising children

In particular, we see the declining birthrate
and aging population as important social
issues, and we contribute to creating a society
where people want to raise children.

% of those who
answered “improve”

18.0%

7.7%

% of those who answered“easy to raise children”

Ratio of respondents who haveintention to purchase online

4.4%

Ratio of respondents
who purchased online
2016
1.

6.5%

No data
2019

2022

2019

2020

2021

2022

2020

2021

2022

The market penetration rate of online life insurance is measured based on “the percentage of respondents who want to purchase via the Internet in the future” and “the percentage of those who have actually purchased via
the Internet” in the “Survey on Life Protection” by the Japan Institute of Life Insurance.” Prospect for the future life is measured based on “the percentage of respondents who answered “improve” about the prospect of the
future lifestyle” in the “Public Opinion Survey on the Life of the People” by the Cabinet Office. Ease of raising children is measured based on “the percentage of respondents who answered “It is easy to raise children” in the“Public Opinion Survey on Social Awareness” by the Cabinet Office.

37

Goals and Targets
FY2023 results

Goals in FY2028

Management Goals¥159bn¥200-240bn

3.8%

Approx.10%¥1,512¥3,000＋Engagement score(Overall)

70

Continuous improvement

Ratio of decision-makers:Women

23.5%

30%＋

2.9%

15%＋

66

Continuous improvement

Comprehensive Equity(CE)Financial Targets
Annual growth rate of CE per share
Stock priceNon-financial Targets（Human capital）

Diversity
Ratio of decision-makers:30s or younger
GrowthOpportunities

Engagement score(Growth)38

Individual life

Breakdown of Policies-in-Force

2023/03

Component
ratio

568,674

600,945100%- Term Life

276,566

293,384

49%- Whole-life Medical

156,402164,20727%- Term Medical Care

7,870

7,067

1%

- Long-term Disability

68,142

69,67012%- Cancer

59,694

66,617

11%

3,633,704

3,801,181

360,364

381,266

Number of policies-in-force

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

Number of policyholders
1.

2024/03

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

39

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

990

981
934

822

794

933

969
923

889

820

818
747
675

639

28,13623,36923,314
19,117

1Q

18,795

2Q

27,55329,864
26,16722,50622,164

24,41023,92822,612

19,685

3Q

2019年度FY20191.

26,91822,12818,471

4Q

1Q

2Q

3Q

2020年度FY20204Q

1Q

20,9342Q

3Q

2021年度FY2021

4Q

1Q

2Q

3Q

2022年度FY2022

4Q

1Q

16,036

16,993

2Q

3Q

4Q

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 months.

40

Individual life

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

2019年度FY2019
1.

4Q

5.5%

5.5%

1Q

2Q

3Q

2020年度FY2020

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

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.

6.8%

1Q

6.6%

2Q

6.3%

6.4%

3Q

4Q

2023年度FY202341

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

129
105
97

92
82
2.2

121

117

3.5

3.5

3.3

3.1

3.1

2.9

2.7

2.0

2019

’20

’21

IACF

7,484

8,339

9,854 10,390

1.

123

2.4

(fiscal year)(JPY millions)

138

138

’22

’23

9,377

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

(fiscal year) 2022/4Q

IACF(JPY millions)

2,737’23/1Q’23/2Q’23/3Q’23/4Q

2,177

2,222

2,072

2,904
42

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

19.4%

19.3%

Quarter

20.7%

17.8%
4,715

20.7%

18.4%

18.9%
17.4%

18.6%

18.9%

4,935

3,896
2,757

(fiscal year)

1.
2.

2019

3,047

’20

’21

’22

’23

(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.

1,232

1,146

1,171

1,280

1,337

2022/4Q’23/1Q’23/2Q’23/3Q’23/4Q43

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

Items

FY2023/2Q

FY2023/3Q

FY2023/4Q

2,274

1,813

2,186

1,947

Expected claims minus incurredclaims1

368

(104)

331

189

Risk adjustment release

433

438

397

407

CSM release

1,677

1,758

1,755

1,864

Reinsurance results

(157)

(225)

(52)

41

Due to an increase in GCL payments

Results from GCL2

－

(4)

(217)

(445)

Financial results3

367

(300)

209

279

Due to GCL’s higher incurred claims
than expected
Due to an increase in foreignexchange gains on foreign bonds(non-currency hedged)

Other results

(120)

(108)

(106)

(191)

Profit before tax

2,521

1,404

2,289

2,035

Net income attributable toowners of the Company

1,765

993

1,606

1,368

Insurance service results

1.
2.
3.

Note

FY2023/1Q

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 individual life’s lower incurredclaims than expected44Breakdown of Insurance Service Results(JPY millions)

Items

FY2023

Insurance revenue

20,732

24,698

Expected claims

9,569

10,464

Risk adjustment release

1,698

1,678

CSM release

6,401

7,056

Recovery of IACF

3,184

3,647

Others

(121)

(150)

－

2,004

13,87416,081

10,688

9,679

－

2,671

3,184

3,647

2

83

Reinsurance results

(239)

(394)

Insurance service results

6,618

8,222

Premium income of GCL1

Insurance service expenses
Incurred claims（Individual life）
Incurred claims（GCL）
Amortization of IACF
Others1.

FY2022

Insurance revenue related to contracts measured under the premium allocation approach45

Breakdown of Financial Results◼ Increase in foreign interest rates has been mitigated, resulting in arecovery in the valuation of investment trusts and other assets(JPY millions)

Items

FY2022

FY2023

ChangeInvestment results

(381)

670

1,051

Interest income

293

450

157

(0)

(5)

(5)

Other investment income

(674)

225

899

Insurance finance income (expense)

(67)

(126)

(58)

Reinsurance finance income (expense)

(3)

11

15

(452)

555

1,008

Impairment losses on financial assets, net

Financial results

46

Detail of Bond Portfolio1
As of March 31, 2024

JPY Bonds
Duration2

Foreign Currency Bonds(JPY millions)

Available-for-Sale

Held-to-Maturity

17,224

22,68239,906

4 years

9 years

7 years

11,478—Duration2

Non-Currency Hedged
Currency Hedged
1.
2.

Based on J-GAAP balance sheet
Calculated by Lifenet

Total

11,4785 years

1,447

—

1,447

10,030—10,03047

CSM Movement◼ Increased due to new business CSM of individual life, improvement of opex
ratio from GCL and revision of mortality assumptions
Impact ofassumptionchanges, etc.

(JPY millions)11,309Items
CSM,
end of the period

92,173CSM,
beginningof the period

Interest
New business accretion
CSM

3,473

842

Amortizationin current
period(7,056)

83,604

Recorded as
insurance revenue
on PL

2023/03

FY2022

FY202374,907

83,604

New business CSM

6,879

3,473

Interest accretion

710

842

Assumption changes, etc.

7,508

11,309Amortization of CSM(6,401)(7,056)

CSM, end of the period

83,604

92,173

CSM, beginning of the period2024/03（YY/MM）48

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 futureacquired new business
Future allocation of CSM(JPY billions)
Expected timing when CSM is recognized in PL
AmountActualIn-force
CSM

As of Mar. 2024
(A)

92.1

A＋year 2

A＋year 3

A＋year 4

A＋year 5

7.2

6.8

6.5

6.2

6.0

59.1

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

49

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 year50

EV Resilience to Financial Changes◼ Limited sensitivity to interest rates and stock prices
Mar. 2024 End
LifenetReference: March 2023 End1
LifenetCompany A

4%
2.3%

Company B

Company C

4%

1.9%
1%

-0.2%
-2.3%

-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%

51

EV Sensitivity Analysis1◼ Impacts of changes in assumptions (sensitivities)
Change in EEV as ofMar. 31, 2024

Change in
VoNB

146,991

6,730

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

(6,606)(1,129)Sensitivity 1b: 1.0% decrease in risk-free rate

6,653

1,219

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

(3,326)(576)

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

3,341

599

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

(222)

－

Sensitivity 3: 10% decrease in operating expenses

6,066

1,408

Sensitivity 4: 10% decrease in lapse rate

1,590

363

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

6,121

342

Sensitivity 6: Change the required capital to the statutory minimum

452

135

(JPY millions)

EEV and new business value as of March 31, 2024

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.

52

Solvency Margin Ratio Calculation
As of Mar. 31, 2024

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

Solvency margin ratio
2,065.0％
Cash and deposits
20,009

Money held in trust
13,358=

Total amount of solvency margin<numerator>
43,291

Reserves for outstanding claims

1,914

Policy reserves
58,554
Contingency reserves 4,398

Securities
42,992

Excess over the fullZillmerized reserve 17,687
Price fluctuation reserves 141
Deferred tax liabilities onavailable-for-sale securities 1－

Valuation difference on
securities available-for-sale(526)1

Tangible fixed assets

65
Intangible fixed assets
1,749

Other assets
6,018
1.
2.

Capital stock andother assets
21,590Net assets
21,063

Total amount of risk/2< the denominator>
4,192/2【Ref.】
Consolidated
Solvency margin ratio

2,192.9%

Other liabilities
2,518
Deferred tax liabilities excluding
available-for-sale securities 0÷(JPY millions)

Insurance risk R1 2,357
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 891
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 2,369[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 168
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.

53

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

54

Changing Factors of Comprehensive Equity◼ CE increases through growth in CSM, GCL contracts value and net
income.
Equity movement

Other
movement(JPY millions)

CSM (after tax) movement1

New business
CSM

133,6872,495Interest
accretion

579

Company
GCL contracts value
movement2

Impact ofassumptionchanges, etc.

9,827 159,802

Net income
GCL
attributable tomovement owners of the

6,709

6,022

5,734
Other
comprehensive
income△378

Amortizationof CSM△4,8742023/03
1. Aggregation of insurance contracts and reinsurance contracts with tax effect (28%) adjusted.
2. The value of future IFRS earnings for GCL policies-in-force (PAA applied) including future renewals as of the valuation date.

2024/03 (YY/MM)
55

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.

56