NEWS RELEASE
May 11, 2023
Ryosuke Mori, President
LIFENET INSURANCE COMPANY(Securities Code: 7157, TSE Growth)

Financial Results for Fiscal 2022 Ended March 31, 2023
Annualized premium of in-force business of 24,033 million yen, up 11.7% year on year
TOKYO, May 11, 2023 - LIFENET INSURANCE COMPANY (TSE Growth 7157, President
Ryosuke Mori, URL: https://ir.lifenet-seimei.co.jp/en/) discloses financial results for fiscal 2022
ended March 31, 2023.
1．Overview of the financial results for fiscal 2022
(1) Business results
Condition of policies-in-force
Annualized premium*1 of new business in 4Q ended March 31, 2023 was 889 million yen(90.6% of 4Q of fiscal 2021). The number of new business was 22,128 (90.7% of 4Q of fiscal
2021). Annualized premium of new business for fiscal 2022 was 3,919 million yen (95.9% of
fiscal 2021). The number of new business for fiscal 2022 was 98,532 (97.9% of fiscal 2021).
Annualized premium of policies-in-force as of the end of March 31, 2023 stands at 24,033
million yen (111.7% of March 31, 2022). Sum insured of policies-in-force was 3,633,704 million
yen (108.4% of March 31, 2022). The number of policies-in-force resulted in a total of 568,674(112.1% of March 31, 2022). The number of policyholders was 360,364. Surrender and lapse
ratio*2 for fiscal 2022 was 6.5% (6.6% for fiscal 2021).
*1: Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one
year. All payments for Lifenet products are in monthly installments, we calculate annualized premium as multiplying
the monthly premium by 12 months.
*2: 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.

Results of operations
Insurance premiums and other for fiscal 2022 increased to 29,207 million yen (114.9% of
fiscal 2021) due to an increase in premium income by growth of in-force business, and effectfrom modified co-insurance. Investment income was 977 million yen (146.9% of fiscal 2021)
mainly due to an increase in gain on money held in trust and gain on sales of securities. Other
ordinary income was 83 million yen. As a result, ordinary income for fiscal 2022 amounted to30,268 million yen (115.7% of fiscal 2021).
Insurance claims and other was 12,445 million yen (143.6 % of fiscal 2021) mainly due to anincrease in insurance benefits related to COVID-19 and reinsurance commission from modified
co-insurance. The ratio of insurance payment amounts to insurance premiums was 27.4% forfiscal 2022, compared with 20.7% for fiscal 2021. In addition, payment of insurance claims andbenefits related to COVID-19 was 1,378 million yen for fiscal 2022. Provision for policy reserves
and other came to 7,453 million yen (108.0% of fiscal 2021). The ratio of provision for policy
reserves to insurance premiums was 31.5% for fiscal 2022, compared with 34.1% for fiscal
2021. Investment expenses was 185 million yen mainly due to the recording of loss on sale ofsecurities. Operating expenses amounted to 13,463 million yen (110.9% of fiscal 2021) mainly
due to the investment in our marketing spend including advertising. The components ofoperating expenses were 8,672 million yen in marketing expenses (105.0% of fiscal 2021),
1,506 million yen in customer service expenses (117.9% of fiscal 2021), and 3,284 million yen
in system and other expenses (126.4% of fiscal 2021). Other ordinary expenses was 1,669

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NEWS RELEASE
million yen (98.6% of fiscal 2021). Consequently, ordinary expenses for fiscal 2022 totaled
35,217 million yen (119.7% of fiscal 2021).
As a result, ordinary profit totaled 4,949 million yen loss for fiscal 2022, compared with 3,245
million yen loss for fiscal 2021. Net income was 5,164 million yen loss, compared with 3,319
million yen loss for fiscal 2021.
In addition, fundamental profit, which is an indicator for the profitability of life insurancecompanies, amounted to 5,072 million yen loss, compared with 3,213 million yen loss for fiscal
2021 mainly due to an increase in insurance benefits related to COVID-19 and operating
expenses. The components of fundamental profit were 2,292 million yen in mortality margin, 7,429
million yen loss in expense margin and 64 million yen in interest margin.
We are participating in reinsurance transactions from fiscal 2019 by modified co-insurance onpart of new business to achieve continuous growth. By utilizing reinsurance appropriately, we willease the temporary burden imposed on statutory capital by expenses associated with new
business and maintain fiscal soundness. The reinsurance transactions are agreements thattransfer the risk and the profit (loss) structure of the reinsured business to the reinsurancecompany for a certain period of time. We receive ceding commission in accordance with the new
business costs associated with the reinsured business in the initial fiscal year. This leads to anincrease in ordinary income. On the other hand, after the ceding commission is recorded
reinsurance accounts receivable as asset, it is amortized by the profit generated from thereinsured business over following fiscal years. This leads to a decrease in ordinary profit and net
profit. Once the balance of reinsurance accounts receivable is amortized to zero, the reinsurance
agreement terminates, and subsequent profit on the reinsured business belongs to Lifenet.
Accordingly, the modified co-insurance for fiscal 2022 resulted in raising ordinary income by 5,671
million yen (4,852 million yen of fiscal 2021), ordinary profit by 608 million yen (1,283 million yen of
fiscal 2021), and net income by 608 million yen (1,283 million yen of fiscal 2021).
(2) Financial condition
Assets, liabilities and net assets
Total assets as of March 31, 2023 amounted to 68,600 million yen (67,820 million yen as ofMarch 31, 2022). The major account balance was 45,606 million yen in securities mainly
consisting of government bonds and corporate bonds with high credit ratings. Reinsurance
accounts receivable was 4,602 million yen including 4,295 million yen of the balance of
unamortized ceding commission for modified co-insurance.
Liabilities amounted to 53,026 million yen as of March 31, 2023 (45,749 million yen as ofMarch 31, 2022), owing to an increase in policy reserves. The major account balances were
49,632 million yen in policy reserves and 1,364 million yen in reserves for outstanding claims.
Net assets amounted to 15,574 million yen as of March 31, 2023 (22,071 million yen as ofMarch 31, 2022) mainly due to the recording of net loss for fiscal 2022 and a decrease invaluation difference on available-for-sale securities. It includes the effect of raising retained
earnings due to the utilization of modified co-insurance. On the other hand, after the ceding
commission is recorded reinsurance accounts receivable as asset, it is amortized by the profit
generated from the reinsured business over following fiscal years. This leads to a decrease in
net assets accordingly.
The solvency margin ratio as of March 31, 2023 was 3,158.2% (3,182.8% as of March 31,2022), which indicated that an adequate level of payment capacity was maintained.

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NEWS RELEASE(3) Cash flows
For fiscal 2022, net cash provided by operating activities amounted to 2,705 million yen(2,783 million yen provided for fiscal 2021) due to the increase of operating expenses. Net cashused by investing activities amounted to 245 million yen (7,749 million yen used for fiscal 2021)
mainly due to purchase and sales of securities and purchase of intangible fixed assets. Net
cash used by financing activities amounted to 2 million yen (9,668 million yen provided for fiscal
2021) .
Based on these activities described above, cash and cash equivalents as of March 31, 2023
totaled 10,219 million yen (7,761 million yen as of March 31, 2022).
(4) Business forecasts
Lifenet will voluntarily adopt International Financial Reporting Standards (hereinafter, “IFRS”)
for its consolidated financial statements from the first quarter of fiscal 2023 ending March 31,
2024. The business forecasts for fiscal 2023 ending March 31, 2024 are prepared based on
IFRS.
The consolidated business forecasts for fiscal 2023 are as follows. We disclose insurance
revenue, insurance service results and net income attributable to owners of parent based on
IFRS in addition to annualized premium of policies-in-force for individual insurance and groupcredit life insurance combined. Please note that the IFRS-based business results for fiscal 2022
ended March 31, 2023, in which Japanese GAAP was applied, are unaudited and disclosed forreference purposes.
(In millions of yen)
Annualized
premium ofpolicies-in-force*3

Business forecasts
for fiscal 2023*4

Insurance
revenue

Insuranceservice results

Net income
attributable toowners ofparent28,50024,900

8,200

5,300

24,033

20,732

6,618

3,575

18.6%

20.1%

23.9%

48.3%

(Reference)
Business results
for fiscal 2022*5
Change*3: Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one
year. All payments for Lifenet products are in monthly installments, we calculate annualized premium as multiplying
the monthly premium by 12 months.
*4: The business forecasts for fiscal 2023 include the impact of group credit life insurance business which starts in July
2023 (planned).
*5: Insurance revenue, insurance service results and net income attributable to owners of parent are accounts based on
IFRS and unaudited. Insurance service results and net income attributable to owners of parent for fiscal 2022
included the impact of the COVID-19 claims (1,378 million yen).

Lifenet will promote initiatives in the priority areas of “innovation of customer experience” and“enhancement of promotion capabilities” to achieve the management goal of 200 billion yen in
European Embedded Value (EEV) in a mid-term. In fiscal 2023, we will expand businessdomains and start providing group credit life insurance, aiming for sustainable growth in in-force
business. To that end, during the current fiscal year, we will invest in marketing for new
business, services related to improving customer experience, and our new business, groupcredit life insurance business as well as initiatives with partner companies. Regarding the

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NEWS RELEASE
payment related to COVID-19, at this time, we expect the impact in fiscal 2023 to be very limited
compared to the amount of the payment (1,378 million yen) in fiscal 2022.
Accordingly, Lifenet is forecasting annualized premium of policies-in-force for individual
insurance and group credit life insurance combined of 28,500 million yen, insurance revenue of
24,900 million yen, insurance service results of 8,200 million yen and net income attributable toowners of parent of 5,300 million yen. The annualized premium of policies-in-force is expected
to be 25,900 million yen for individual insurance and 2,600 million yen for group credit life
insurance.
By investing for growth with the aim of improving corporate value over the mid-term, Lifenet
aims to achieve sustainable growth in in-force business and 10% continuous growth ininsurance service results.
(Reference) Breakdown of business forecasts for annualized premium of policies-in-force(In millions of yen)
Individual
Insurance
Business forecasts
for fiscal 2023

Group Credit
Life Insurance

Total

25,9002,600

28,500Business results
for fiscal 2022

24,033-24,033

Change

7.8%

-

18.6%

(Reference)(5) Dividend policy
Lifenet has yet to determine its specific dividend policies and dates for the start of distributing
retained earnings as dividends as we still record cumulative loss and will be prioritizing
strengthening our growth base to increase mid to long term profitability.
In the future, we will continue to target business expansion and profit generation byimplementing measures to increase recognition of the Company, developing new products andservices, and effectively utilizing financing for investment in systems and other aspects of thebusiness. In addition to this, we will consider implementing measures to provide shareholder
return that include payment of dividends from future retained earnings.
Lifenet's Articles of Incorporation stipulates that a decision on the distribution of retained
earnings as specified in each Item of Paragraph 1, Article 459 of the Companies Act can bemade by a resolution of the Board of Directors, except as otherwise determined by law. Fromfiscal 2023 ending March 31, 2024, we will voluntarily adopt IFRS in its consolidated financial
statements, however, distribution of retained earnings will be based on non-consolidated
financial statements in accordance with Japanese GAAP.

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2．Business policy(1) Basic management policy
Lifenet’s management philosophy is helping our customers embrace life more fully by offering
comprehensible, cost-competitive and convenient products and services based on the highest
levels of business integrity. With the internet as our main sales channel, we utilize technology
and strive to be the leading company driving the growth of the online life insurance market
through our customer-centric products and services.
(2) Target indicator
Lifenet regards European Embedded Value (EEV), noted in the management goal set in ourManagement Policy, as the important management indicator of corporate value.
We have also established three types of indicators for growth, profitability *1, and financial
soundness to support sustainable growth of EEV. The indicators for growth are in-force
business and new business; the indicators for profitability are insurance acquisition cash flows
efficiency and the operating expenses ratio (operating expenses excluding insurance acquisition
cash flows divided by insurance premium) and; the indicator for financial soundness is thesolvency margin ratio.
*1: As for the profitability indicator, marketing efficiency and operating expenses ratio excluding marketing expenses
were set up until fiscal 2022 based on Japanese GAAP, which had been applied in financial reporting. In place ofthem, insurance acquisition cash flows efficiency and operating expenses ratio excluding insurance acquisition cash
flows will be applied due to the voluntary adoption of IFRS from fiscal 2023. Insurance acquisition cash flows is costdirectly attributable to the increased acquisition of insurance contract groups, which is the sum of marketing
expenses plus mainly system costs and new business underwriting costs.

(3) Mid to long term business strategy and challenges
We formulated our Management Policy to achieve even greater growth and high profitability
over the mid to long term.
Summary of Management Policy
MissionHelp our customers embrace life more fully by offering comprehensible,
cost-competitive and convenient products and services

VisionBe the leading company driving the growth of the online life insurance
market⚫

Innovation of customer experience
Enhancing and evolving the quality of all services with digital

Priority areas

technology⚫

Enhancement of promotion capabilities
Generating massive customer traffic by active promotion andexpansion of agent sales and white label business

Management
goal

Aim to achieve EEV (indicator of corporate value) of 200 billion yen bybusiness growth in a mid-term

In fiscal 2022, the external environment of the life insurance industry changed significantly
due to the COVID-19 situation and interest rate fluctuations, which also affected our
performance. In addition, compared with the time when we commenced our business in 2008,
new entries into online channels have increased and the competitive landscape has become

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5NEWS RELEASE
even more severe. Under these circumstances, we achieved steady growth, with the number ofpolicies-in-force exceeding 550,000 and EEV, a management indicator, reaching 120 billion yen,while leveraging our strengths as the leading company of online life insurance. We will pursue
initiatives that address the following issues with the aim of achieving further growth in in-force
business and the management goal of achieving 200 billion yen in EEV.
ⅰ Reaccelerating of the mid to long term growth of Internet channel
We aim to reaccelerate the growth of internet channel through initiatives in the two priority
areas of “innovation of customer experience” and “enhancement of promotion capabilities” overthe mid to long term.
First, we will continue to invest in adverting and promotion, mainly in TV commercials andonline advertising to promote the increase of our brand awareness so that customers can recall
Lifenet at the timing of their purchases.
Next, we believe that it is important to be able to give our customers, who recognize us, asense of security in choosing us as the competitive environment becomes more severe.
Therefore, we will deliver our products and services centered on our value of “Comprehensible,
Cost-Competitive, Convenient” to our customers more clearly and will provide products andservices that are chosen by customers with focusing on system development and data analysis
to improve the customer experience.
In fiscal 2023, in particular for younger generation, our main customer base, we will promotea sales strategy that goes beyond the promotion domain. Since we commenced our business,
our performance has grown with the support of many young customers. In recent years, ourperformance has grown as an online life insurance company of choice among middle-aged andelderly customers. In order to further increase our scale and improve operating efficiency overthe mid to long term, we need to make the foundations for reacceleration of the growth of our inforce business. To achieve this, we aim to increase the performance of the Internet channel byfocusing on attracting younger customers, who prefer digital customer experiences. As we markthe 15th anniversary of our business commencement in 2023, we will return to the LIFENET
Manifesto and take on the challenge of strengthening customer touchpoints and providing
products and services from the perspective of younger customers.
ⅱ Expanding the online life insurance market through collaboration with partners
By taking advantage of our unique position as an independent company and the leading
company in the online life insurance market, we will actively engage in collaboration with partnercompanies and aim to expand online life insurance market. With a view to mid to long term
growth in the future, in fiscal 2023, we will strengthen our individual insurance businesses withpartner companies and our platform businesses, as well as expand new business domain,group credit life insurance businesses.
As for individual insurance businesses, we aim to increase the contribution to the in-force
business performance by focusing on white label businesses. We leverage the broad customer
base and brand power of partner companies such as KDDI Corporation and Money Forward,Inc.
In our platform business, as for “B to C”, we aim to expand the business scale by improving theUIUX of our online insurance agent website provided by LIFENET MIRAI Inc., our subsidiary.
We also aim to provide a service for “B to B” customers with the systems and digital tools
necessary for the online insurance business by utilizing the functions and know-how of current
agent business for “B to C” customer. As part of this, in October 2022, we concluded a businessalliance agreement with Sumitomo Mitsui Card Co., Ltd., and start working to realize a digital
customer experience. We aim to contribute to the expansion of online life insurance market by

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NEWS RELEASE
building financial services that are even closer to our customers through the interaction of “B to
B” and “B to C” business.
As for our new group credit life insurance business, in July 2023, we will begin offering groupcredit life insurance to mortgage loan borrowers of au Jibun Bank Corporation. In the current
fiscal year, we will steadily launch this business so that it will become a new earnings
opportunity. In the future, we will work to establish a stable earnings base with a view toincreasing alliance partners.
ⅲ Strengthening efforts to address human capital to support business growth
In order to provide customer-friendly products and services and achieve strong growth while
responding to the changing environment, we believe that it is important to create better work
environment in which employees can play an active role. To that end, we will focus on “value
diversity” and “create opportunities for growth”.
As part of our efforts to become a company that “value diversity,” we aim to create better work
environment where employees with diverse knowledge, experience and ideas can play anactive role through age-, nationality- and gender-free recruitment. We also aim to create anorganization where each employee can work in a healthy, cheerful, and pleasant manner while
making most of their personality and respecting each other.
As part of our efforts to “create opportunities for growth,” we will support the challenge andgrowth of employees through unique evaluation systems and the provision of opportunities for
employees to learn together. We encourage our employees to take on challenges and grow andpromote initiatives to link individual growth to organizational growth.

3. Basic Rationale for Selection of Accounting Standards
Lifenet will voluntarily adopt International Financial Reporting Standards (IFRS) for its
consolidated financial statements from the first quarter of the fiscal year ending March 31, 2024
for the purpose of more appropriately representing its periodic profit/loss and profitability andimproving the international comparability of financial information.

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NEWS RELEASE
4. Non-consolidated Financial Statements(1) Balance Sheets(In millions of yen)March 31
2022

2023

Cash and deposits ·································································

3,761

5,719

Bank deposits ································································

3,761

5,719

Monetary claims bought ··························································

3,999

4,499

Money held in trust ································································

5,460

5,322

Securities ············································································

47,42545,606

Government bonds ·························································

8,946

7,689

Municipal bonds ·····························································

1,469

1,442

Corporate bonds ····························································

24,042

24,994

Stocks ·········································································

492

435

Foreign securities ···························································

98

596

Other securities ·····························································

12,375

10,447

Tangible fixed assets ······························································

97

75

Buildings ······································································

25

22

Leased assets ·······························································

7

5

Other tangible fixed assets ···············································

64

47

Intangible fixed assets ····························································

1,293

1,544

Software·······································································

1,123

1,098

Software in progress ·······················································

170

445

Agency accounts receivable ····················································

7

9

Reinsurance accounts receivable ··············································

3,881

4,602

Other assets·········································································

1,892

1,219

Accounts receivable ························································

1,585

880

Prepaid expenses ··························································

131

150

Accrued income ·····························································

101

112

Deposits ·······································································

73

73

Suspense payments ·······················································

1

3

Total assets ···························································

67,82068,600ASSETS

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NEWS RELEASE(In millions of yen)March 31
2022

2023

Policy reserves and other ························································

43,54250,996

Reserves for outstanding claims ········································

984

1,364

Policy reserves ······························································

42,55849,632

Agency accounts payable ·······················································

48

64

Reinsurance accounts payable ·················································

404

495

Other liabilities ······································································

1,379

1,344

Income taxes payable ·····················································

3

3

Accounts payable ···························································

30

68

Accrued expenses ··························································

1,270

1,195

Deposits received ···························································

16

18

Lease liabilities ······························································

7

5

Asset retirement obligations··············································

34

34

Suspense receipt ···························································

17

17

Reserves under the special laws ···············································

102

124

Reserve for price fluctuations ············································

102

124

Deferred tax liabilities ·····························································

271－

Total liabilities ·························································

45,74953,026

Capital stock ········································································

21,655

21,676

Capital surplus ······································································

21,655

21,676

Legal capital surplus ·······················································

21,655

21,676

Retained earnings ·································································(21,936)(27,100)

Other retained earnings ···················································(21,936)(27,100)

Retained earnings brought forward ·····························(21,936)(27,100)

Treasury shares ····································································

(0)

(0)

Shareholders’ equity ·········································

21,373

16,252

Valuation difference on available-for-sale securities ······················

697

(678)

Valuation and translation adjustments ········································

697

(678)

Total net assets ···············································

22,071

15,574

Total liabilities and net assets ·····························

67,82068,600

LIABILITIESNET ASSETS

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

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NEWS RELEASE(2) Statements of Operations

Ordinary income ························································
Insurance premiums and other ······························
Premiums income ·······································
Reinsurance income ····································
Investment income ·············································
Interest, dividends and other income ···············
Interest from deposits ···························
Interest and dividends from securities ·······
Other interest and dividends ···················
Gain on money held in trust ···························
Gain on sales of securities ····························
Other ordinary income ·········································
Other ························································
Ordinary expenses ····················································
Insurance claims and other···································
Insurance claims ·········································
Benefits ····················································
Other refunds ·············································
Reinsurance commissions ····························
Provision for policy reserves and other ····················
Provision for reserves for outstanding claims ·····
Provision for policy reserves ··························
Investment expenses ··········································
Interest expenses ········································
Loss on sales of securities ····························
Foreign exchange losses ······························
Other investment expenses ···························
Operating expenses ············································
Other ordinary expenses ······································
Taxes ·······················································
Depreciation ··············································
Other ························································
Ordinary profit (loss) ··················································
Extraordinary losses ··················································
Loss on valuation of shares of subsidiaries and affiliates ····
Loss on disposal of non-current assets ···················
Provision of reserves under the special laws ············
Provision of reserve for price fluctuations ·········
Income (loss) before income taxes ································
Income taxes-current ·················································
Income taxes ····························································Net income (loss) ······················································(In millions of yen)
Year ended March 31
2022
2023
26,16730,26825,42029,207
19,835
22,469
5,585
6,738
665
977
415
497
0
0
415
497
0
0
70
183
178
296
81
83
81
83
29,41335,217
8,668
12,445
2,546
3,123
1,563
3,030
1
1
4,558
6,290
6,903
7,453
146
379
6,756
7,074
8
185
0
2
－
180
0
0
7
3
12,14013,463
1,693
1,669
1,169
1,273
390
392
133
3
(3,245)(4,949)
68
209
－
185
42
2
26
22
26
22
(3,314)(5,159)4
4
4
4(3,319)(5,164)

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

10

NEWS RELEASE(3)

Statements of Changes in Net Assets(In millions of yen)
Year ended March 31
2022
2023

Shareholders' equity:
Capital stock
Balance at the beginning of the year ·························
Changes of items during the period
Issuance of new shares ···································
Issuance of new shares-restricted stock ··············
Issuance of new shares-exercise of subscription rights to shares ·····
Total changes of items during the period ··············
Balance at the end of the period ·······························
Capital surplus
Legal capital surplus
Legal capital surplus ·······································
Changes of items during the period
Issuance of new shares ·······························
Issuance of new shares-restricted stock ··········
Issuance of new shares-exercise of subscription rights to shares ·Total changes of items during the period ··········
Legal capital surplus ··············································
Total capital surplus
Capital surplus ···············································
Changes of items during the period
Issuance of new shares ·······························
Issuance of new shares-restricted stock ··········
Issuance of new shares-exercise of subscription rights to shares ·Total changes of items during the period ··········
Capital surplus ···············································
Retained earnings
Other retained earnings
Retained earnings brought forward
Retained earnings brought forward·················
Total changes of items during the period
Net income (loss) ···································
Total changes of items during the period ·····
Retained earnings brought forward·················
Total retained earnings
Retained earnings ········································
Changes of items during the period
Net income (loss) ·····································
Total changes of items during the period ·······
Retained earnings ·······································
Treasury shares
Balance at the beginning of the year ·························
Changes of items during the period
Purchase of treasury shares ·····························
Total changes of items during the period ··············
Balance at the end of the period ·······························

16,731

21,655

4,885
21
15
4,923
21,655－21－
21
21,676

16,731

21,655

4,885
21
15
4,923
21,655－21－
21
21,676

16,731

21,655

4,885
21
15
4,923
21,655－21－
21
21,676(18,616)(21,936)(3,319)(3,319)(21,936)(5,164)(5,164)(27,100)(18,616)(21,936)(3,319)(3,319)(21,936)(5,164)(5,164)(27,100)

(0)

(0)

(0)
(0)
(0)

(0)
(0)
(0)

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

11

NEWS RELEASE(In millions of yen)
Year ended March 31
2022
2023
Total shareholders' equity
Balance at the beginning of the year ··························
Changes of items during the period
Issuance of new shares ···································
Issuance of new shares-restricted stock ··············
Issuance of new shares-exercise of subscription rights to shares ·····Net income (loss) ···········································
Purchase of treasury shares ·····························
Total changes of items during the period ·············
Balance at the end of the period ·······························

14,846

21,3739,771
43
31(3,319)(0)
6,526
21,373－43－(5,120)(0)(5,120)
16,252960

697

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Balance at the beginning of the year ··························
Changes of items during the period
Net changes of items other than shareholders'equity ··························································
Total changes of items during the period ·············
Balance at the end of the period ·······························
Total valuation and translation adjustments
Balance at the beginning of the year ··························
Changes of items during the period
Net changes of items other than shareholders'equity ··························································
Total changes of items during the period ·············
Balance at the end of the period ·······························Net assets:
Balance at the beginning of the year ··························
Changes of items during the period
Issuance of new shares ··································
Issuance of new shares-restricted stock ·············
Issuance of new shares-exercise of subscription rights to shares ····Net income (loss) ··········································
Purchase of treasury shares ····························Net changes of items other than shareholders'equity ·························································
Total changes of items during the period ·············
Balance at the end of the period ································(262)(1,375)(262)
697(1,375)
(678)

960

697

(262)

(1,375)(262)
697(1,375)(678)

15,80622,0719,771
43
31(3,319)
(0)
(262)

－
43
－
(5,164)(0)

6,264
22,071(6,496)
15,574

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

(1,375)

12

NEWS RELEASE(4) Statements of Cash Flows(In millions of yen)
Year ended March 31
2022

2023

Cash flows from operating activities
Income (loss) before income taxes ·····································
Depreciation and amortization ···········································
Increase (decrease) in reserves for outstanding claims ···········
Increase (decrease) in policy reserves ·································
Increase (decrease) in reserve for price fluctuations ···············
Interest, dividends and other income ···································
Loss (gain) related to securities ··········································
Interest expenses ···························································
Loss (gain) property plant and equipment ·····························
Share issuance costs ·······················································
Decrease (increase) in agency accounts receivable ···············
Decrease (increase) in reinsurance accounts receivable ··········
Decrease (increase) in other assets <excluding assets for investing and financing activities > ·Increase (decrease) in agency accounts payable ························
Increase (decrease) in reinsurance accounts payable ·············
Increase (decrease) in other liabilities <excluding assets for investing and financing activities> ·Other, net ······································································
Subtotal ········································································(3,314)
390
146
6,756
26
(415)
(178)
1
5
130
1
(1,311)
(235)
(21)
103
189
9
2,283

(5,159)
392
379
7,074
22
(497)
69
2
1
－
(1)
(721)
693
16
90
(71)
(137)
2,153

Interest and dividends income received ·······························
Interest expenses paid ·····················································
Income taxes (paid) refund ················································

520
(1)
(19)

569
(2)
(14)

Net cash provided by (used in) operating activities ············Cash flows from investing activities
Purchase of money held in trust ·········································
Proceeds from decrease in money held in trust ·····················
Purchase of securities ······················································
Proceeds from sales and redemption of securities ······················

2,783

2,705

－
500
(9,809)
2,076

(0)
240
(9,339)9,439(7,232)(4,448)(38)(478)(7,749)

340
3,046
(1)
(583)
(245)

9,641
31
(0)
(4)
9,668
4,702
3,059
7,761

－
－
(0)
(2)
(2)
2,457
7,761
10,219Total of net cash provided by (used in) investment transactions ···Total of net cash provided by (used in) operating activities and investment transactions ···Purchase of tangible fixed assets ·······································
Purchase of intangible fixed assets ·····································Net cash provided by (used in) investing activities ·············Cash flows from financing activities
Proceeds from issuance of shares ······································
Proceeds from issuance of stock resulting from exercise of subscription rights to shares ···Purchase of treasury shares ··············································
Repayments of lease obligations ········································Net cash provided by (used in) financing activities ············Net increase (decrease) in cash and cash equivalents ················Cash and cash equivalents, beginning of the year ······················Cash and cash equivalents, end of the year ······························

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

13

NEWS RELEASE
About LIFENETURL: https://ir.lifenet-seimei.co.jp/en/

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. We aim to be the leading company driving
the growth of the online life insurance market.
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 andprovided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese
document prevails.

Copyright© LIFENET INSURANCE COMPANY All rights reserved.

14