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Securities Code: 7157 TSE Prime Presentation Material for Investors Second Quarter for Fiscal 2025 November 13, 2025
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1 Table of Contents １. Main Initiatives for 1H of FY2025 2. Financial Results for 1H of FY2025 3. For Improvement of Market Evaluation
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2 1H for Fiscal 2025 Key Highlights Corporate Value Growth Profitability Comprehensive Equity1 ¥175,566mn (YoY 106.4%) Annualized premium2 of policies-in-force ¥35,805mn (YoY 110.0%) Insurance service results ¥6,089mn (YoY 133.4%) Notable achievements Key indicators 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 monthlyinstallments, 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. (The same will apply hereafter) ◼ Transforming UX through service enhancements using technology ◼ Establishing a unique position with the launch of new "Term Cancer Insurance“ ◼ Expanding future potential of GCL business through a new partnership with THE KYOTO SHINKIN BANK in Nov. 2025
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3 Reduced application burden by revising underwriting questionnaires ◼ Transforming CX with highly convenient services For Further Improvement of CX Shortened processing time with same-day payments service for claims & benefits Expanding opportunities to provide the “Ultimate Insurance Experience" through partnership with Advance Create Co., Ltd. Leading distributer with insurance marketplace Market leader in online life insurance Oct. 2025 Average business days to payment1 3.17 2.91 1.83 FY2023 FY2024 Shortened Aug. 2025 Improved convenience by installing Voice AI and Voicebots Nov. 2025 Jul. 2025 First-level support by AI Tech & ServicesRebranding Embedded After service launch1 1. Average business days from document receipt to payment. Excludes cases requiring confirmation, incomplete documents, or GCL. "After service launch" figure based on data from Aug 6 - Sep 30, 2025. ApplicationNeeds Generation Policy Management Review ClaimConsulting Comparison & Consideration
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4 ◼ Establishing competitive advantage by leveraging online model, meeting customer needs for affordable premiums with "term" series For Building Unique Position Sales start Dec. 2025 Tech & ServicesRebranding Embedded Flagship product since opening Supporting rational choices for the younger generation Unique brand for the “term" product Lineup Renewal of whole-life cancer insurance Discontinuing the current whole-life cancer; "Double Yell" renewed with enhanced coverage Cancer Death Medical Term Cancer Term Life Term Medical Whole-life Cancer Sales start Dec. 2025
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5 652 680 843 FY2023 FY2024 FY2025 前年同期比 133.4％ ◼ Sales efforts leading to a strong turnaround towards growth in individual life Rebranding Tech & Services Embedded （JPY millions） Regrowth of Individual Life Net increase of annualized premium of policies-in-force for individual life 2023/1H 2024/1H 2025/1H YoY +23.9％ Optimization of online ads Website improvement Multiple initiatives led to success Ads creative refresh CRM optimization Enforcement of public relations
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6 Others ◼ Agreed on new partnership with Kyoto Shinkin Bank ◼ Expanding the GCL business based on our first alliance achievement outside the existing collaboration group New Growth Stage for GCL business Tech & ServicesRebranding Embedded Support mortgage loan competitiveness NEW • New business alliance agreement with Kyoto Shinkin Bank • Service launch scheduled for Jul. 2026(planned) Direction of future expansion • Service started Jul. 2023 • Supporting home purchases for dual-income households Market share among financial institutions by mortgage loan balance1 Promote switching to our GCL through competitive premium and DX support to ones with a certain level of outstanding loan balances 1. Compiled by Lifenet based on the Japan Housing Finance Agency (JHF) "Survey Results on New Housing Loan Lending Amounts and Outstanding Loan Balance by Business Category" and disclosure reports from respective companies. The top 100 institutions cover domestic banks and shinkin banks. 2. Source: Japan Housing Finance Agency (JHF), " Survey Results on New Housing Loan Lending Amounts and Outstanding Loan Balance by Business Category," Q1 2025 (Jan-Mar 2025). Total outstanding mortgage loan balance2 ¥227tn Lifenet’s core target Approx.70％ Second partner bank Top 100
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7 中期計画 Priority Areas EmbeddedRebranding Tech & Services • 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 Comprehensive Equity (CE) : ¥200-240bn Stock price：¥3,000+ Annual growth rate of CE per share： approx. 10% Engagement score (growth): continuous improvement Management Goal Goals in Fiscal 2028 Financial Targets Non-financial Targets (Human capital) FY2024-2028 Mid-term Business Plan Growth Strategy Human Resources Strategy Diversity Growth Opportunities Overall engagement score: continuous improvement Ratio of decision-makers： Women 30%+, Under 30s 15%+
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8 Table of Contents １. Main Initiatives for 1H of FY2025 2. Financial Results for 1H of FY2025 3. For Improvement of Market Evaluation
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9 20,231 22,947 24,685 26,104 27,720 2,570 6,455 8,084 1. AP stands for Annualized premium (The same will apply hereafter) 2024/092022/09 2023/092021/09 2025/09 35,805mn YoY +10.0％ 32,559 ◼ Resulted in ¥35,805mn and continued significant growth of 10.0% YoY Annualized Premium of Policies-in-Force 27,255 （YY/MM） Individual life insurance Group credit life insurance :AP1 of policies-in-force for individual life (JPY millions) :AP1 of policies-in-force for GCL (JPY millions)
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10 32,559 33,348 34,518 35,214 329 459 443 726 412 283 2024/09 2024/12 2025/062025/03 430 160 2025/09 ◼ Individual life continued strong recovery ◼ GCL growth pace slowed by external factors but steadily accumulated Policies-in-Force Movement :Net increase of AP of policies-in-force for individual life (JPY millions) :Net increase of AP of policies-in-force for GCL (JPY millions) Net increase of individual life Net increase of GCL ¥35,805mn AP of policies-in-force YoY +10.0％ （YY/MM）
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11 Summary IFRS P/L Items FY2024/1H FY2025/1H Change Insurance service results 4,565 6,089 1,523 Financial results1 (57) 388 445 Other results (129) (176) (46) Profit before tax 4,378 6,301 1,922 Net income attributable to owners of the Company 3,152 4,478 1,325 1. Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense ◼ Insurance service results and net income resulted in ¥6,089mn and ¥4,478mn, respectively (JPY millions)
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12 7,216 6,618 8,222 9,576 3,549 2,946 4,088 4,565 (Fiscal year)2021 2022 2023 2024 2025/1H 6,089mn2 2 2 2 Insurance Service Results1 ◼ Achieved significant growth of 33.4% YoY and 62.1% progress rate for business forecasts :Insurance service results (1H, JPY millions) :Insurance service results (fiscal year, JPY millions) 1. Figure for FY2021 is for reference use only as it is before date of transition to IFRS 2. COVID-19 related claims was ￥1,378mn in FY2022 and ￥36mn in FY2023. It is also included in FY2024 onward, but detailed calculation has not been performed Progress rate for the business forecasts 62.1％ Business forecasts 9,800 YoY ＋33.4％
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13 ◼ Grew strongly driven by lower-than-expected incurred claims of individual life and GCL (JPY millions) Items FY2024/1H FY2025/1H Change Expected claims minus incurred claims 26 672 646 Risk adjustment release 797 824 27 CSM release 3,699 3,845 146 Reinsurance results (283) (883) (599) Others (122) (174) (52) Results from GCL1 448 1,804 1,355 Insurance service results 4,565 6,089 1,523 2025/1H2024/1H Expected minus incurred 646 Risk adjustment release 27 CSM release 146 Reinsurance results (599) Others (52) YoY +1,523mn Insurance service results 4,565 Insurance service results 6,089 1. Insurance service results related to contracts measured under the Premium Allocation Approach (Excluding reinsurance results) Insurance Service Results Analysis Results from GCL 1,355 (Fiscal year)
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14 保険サービス損益 保有契約年換算保険料 包括資本 14,935mn 1,804mn1 22.6% 29.6% 8,084mn Comprehensive Equity AP of policies-in-force Insurance services results Results from GCL AP for GCL GCL contracts value ◼ Sales through au Jibun Bank are strongly contributing key indicators Our key indicator results (as of Sep. 2025) 1. Insurance service results related to contracts measured under the Premium Allocation Approach (Excluding reinsurance results) GCL Business Performance 8.5% (19.3%, if IFRS equity excluded) :Individual life :GCL :IFRS equity
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15 : GCL contracts value (JPY millions) ◼ Strongly growing at a CAGR of 18% since IPO : IFRS Equity (JPY millions) : CSM after tax (JPY millions) : CE per share（JPY）2 （YY/MM） : EEV (JPY millions) European Embedded Value（EEV）1 Comprehensive Equity 1. Lifenet’s EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The EuropeanInsurance 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 Movement of Management Indicators 175,566 2012/03 13/03 14/03 15/03 16/03 17/03 18/03 19/03 24/0320/03 21/03 23/03 25/0925/03 ¥2,185 22/03 90,870 92,109 98,177 62,222 61,140 62,453 6,709 13,840 14,935 159,802 167,090 ¥1,991 ¥2,080
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16 Changing Factors of Comprehensive Equity (CE) 2025/03 167,090 Amortization of CSM (2,583) GCL contracts value movement 1,519 New business CSM 1,536 Impact of assumption changes, etc. 2,018 ◼ Increased mainly due to unrealized gains on strategic investment stocks and assumption changes Net income2 4,478 Interest accretion 341 Other comprehensive income (605) Other movement 46 Management efforts Others 1. Tax effect (28.9%) before the introduction of the special defense corporation tax adjusted 2. Net income attributable to owners of the Company : GCL movement（JPY millions）1 : CSM movement（JPY millions）1 : Equity movement（JPY millions） 1 2025/09 Impact of interest rate on GCL contract value (424) (YY/MM) 176,549 Unrealized gains on strategic investment stocks 2,149 175,566 Acquired shares of Advance Create Co., Ltd. in Sep. 2025
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17 (JPY millions) FY2024 FY2025 Results 1H Results Forecasts Annualized premium of policies-in-force 34,518 35,805 37,500 Insurance revenue 30,081 16,767 33,000 Insurance service results 9,576 6,089 9,800 Net income attributable to owners of the Company 5,993 4,478 6,900 Consolidated Business Forecasts for FY2025 Growth Profitability ◼ Remains unchanged since May 2025 AP of policies-in-force Insurance service results 9,576 (JPY millions)(JPY millions) 34,518 Individual approx. 1,600 GCL approx. 1,400 Business forecasts 37,500 Business forecasts 9,800 2025/03 2026/03 FY2024 FY2025
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18 Table of Contents １. Main Initiatives for 1H of FY2025 2. Financial Results for 1H of FY2025 3. For Improvement of Market Evaluation
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19 602 599 1,266 561 1,162 1,512 1,742 1,968 2019/03 2020/03 2021/03 2022/03 2023/03 2024/03 2025/03 2025/11 Capital Market Evaluation ¥ （YY/MM） CE and CE per Share1 Stock Price2 （YY/MM） PCE(Price/CE per Share1) Ratio 1. EEV, EV per share and Price/EEV per share ratio before the end of March 2023 2. Closing price. For 2025/11, closing price on November 12, 2025 ◼ While the PCE ratio shows an improving trend, it remains below 1x, indicating room for further improvement 63,378 73,431 95,140 116,604 124,666 159,802 167,090 175,566 1,239 1,430 1,570 1,673 1,788 1,991 2,080 2,185 2019/03 2020/03 2021/03 2022/03 2023/03 2024/03 2025/03 2025/11 : CE : CE/share (JPY) （YY/MM） 2025/09 0.49 0.42 0.81 0.34 0.65 0.76 0.84 0.90 0.00 1.00 2.00 2019/03 2020/03 2021/03 2022/03 2023/03 2024/03 2025/03 2025/11 X （YY/MM）
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20 Initiatives to Improve PCE Ratio ◼ Targeting PCE of 1.0x+ by enhancing corporate value with individual life & GCL businesses and market valuation Improvement of market evaluationEnhancement of corporate value • Cultivate new investors leveraging Prime Market listing • Promote initiatives for individual investors • Enhance Board functions for better oversight & effectiveness • Set the stock price and CE per share as mid-term business plan targets • Promote understanding of "Comprehensive Equity“ • Disclose 6-8% cost of capital • Disclose appropriate risk-taking Scale expansion Profitability improvement Growth in individual & GCL businesses based on priority areas • Individual life: Re-grow via accumulated sales initiatives • GCL: Drive expansion by acquiring new partner banks Increase CSM by IACF & opex efficiency improvement • Build foundation for mid-term sales efficiency improvement • Improve running cost per policy through higher productivity Strengthen corporate governance Improve market liquidity Strong commitment to shareholder value Open and active dialogue with investors
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21 Achieving Mid-term Business Plan 2029/03 ¥200-240bn Stock price 2022/03 2023/03 2024/03 167 CE growth image FY2028 Financial goals approx.10% ¥3,000+ Annual growth rate of CE per share 1241 133 ◼ Aim to achieve FY2028 management goal by realizing sustainable growth through investment in priority areas 159 2025/03 1. For reference use only as it is before date of transition to IFRS
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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 materially from actual performance due to various risks and uncertainties. This is a translation of the original Japanese document, prepared and provided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese document prevails. https://ir.lifenet-seimei.co.jp/en/
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23 LIFENET Manifesto We wish to be a company that help our customers embrace life more fully through management with integrity, and offering easy-to-understand, affordable, convenient products and services. (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.” (2) Listening to what our customers are saying. Recognizing their needs and acting accordingly. Allowing our actions to be borne out of their voices and needs. (3) Delivering the caliber of products and services that we would feel confident recommending to our own friends and families. (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 to compliance and ethics. (1) Helping the customers help themselves. By making our materials easy to understand, customers can determine which coverage is truly the best fit. (2) Turning “clauses” in the insurance contract into succinct points that your grandmother could grasp. (3) Making all touch points headache-free. Beyond the application process, ensuring the claims and billing processes are also easy to understand. (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 cost- efficiently. (3) Always putting ourselves in our customers’ shoes in thinking about how to minimize their premiums. (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 and beyond 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. Our Guiding PrinciplesI. Making Life Insurance Accessible Again - Headache-freeII. Making Life Insurance Accessible Again - AffordableIII. Making Life Insurance Accessible Again - ConvenientIV. Sincere, Easy-to-understand, Affordable and Convenient
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Appendix
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25 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 than insurance 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 will recognize 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).
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26 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 have defined it as the indicator that represents the corporate value of the Group as it includes the value of future profits of policies-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. Economic Solvency Ratio(ESR) ESR is the indicator to assess the soundness of insurers. Based on the economic valuation of assets and liabilities of insurance companies, ESR is calculated as the ratio of the eligible capital against the required capital which is evaluated as the risk amount for the losses. Regulatory ESR is the administrative indicator which will be disclosed for the closing from March 2026 onwards. It assesses the capital adequacy of insurers in place of existing SMR. Internal ESR is the ESR which the Group uniquely calculates as an internal indicator. Eligible capital The numerator of ESR as the capital that insurers hold. Based on the value of the net asset on the economic-value based balance sheet under a market consistent approach, necessary adjustments are made regarding the eligibility as the capital for the risk. Required capital The denominator of ESR as the risk amount that insurers take. For each risk category, the risk amount is calculated at a certain level and then the amounts are aggregated with the prescribed methodology. In many of the risk categories, the required capital is defined as the changes in the value of (economic value-based) net assets under prescribed stresses. Glossary 2
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27 Breakdown of Policies-in-Force 2024/09 2025/09 Component ratio Number of policies-in-force 618,039 659,078 100% - Term Life 301,426 318,080 48% - Whole-life Medical & Term Medical 168,639 181,730 28% - Long-term Disability 70,713 73,447 11% - Cancer 70,157 78,613 12% - Other1 7,104 7,208 1% Sum insured of policies-in-force2 (JPY millions) 3,882,078 4,062,019 Number of policyholders 391,284 413,667 1. Term Medical Care and Dementia 2. Sum insured of polices-in-force are the sum of death coverage, and do not include third-sector insurance. Individual life
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28 27,553 26,167 22,506 24,410 23,928 29,864 22,612 22,128 18,471 16,036 16,993 20,934 18,634 17,174 16,954 20,498 19,967 1,123 1,051 933 981 969 1,137 923 889 747 639 675 820 734 689 681 808 792 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 FY2023 FY2024 FY2025 Annualized Premium / Number of New Business 20,474 806 :AP1 of new business (JPY millions) :Number of new business 1. The amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments are monthly in stallments, thus the annualized premium is calculated as multiplying the monthly premium by 12. Individual life
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29 Surrender and Lapse Ratio 1. The surrender and lapse ratio is the annual equivalent of the monthly number of policies surrendered and/or lapsed divided bythe monthly average number of policies-in-force. :Surrender and lapse ratio1（%） Individual life 7.6% 6.3% 6.0% 6.6% 6.4% 6.3% 6.4% 6.9% 6.8% 6.6% 6.3% 6.4% 6.1% 5.6% 5.4% 5.5% 5.6% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2021 FY2022 FY2023 FY2024 FY2025 5.4%
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30 97 105 129 133 2.4 2.7 3.3 3.4 137 150 131 127 3.4 3.7 3.3 3.2 Insurance Acquisition Cash Flows (IACF) Efficiency (Fiscal year) 2021 IACF (JPY millions) 9,854 10,390 9,377 9,814 4,992 ’22 ’23 ’24 ’25/1H Fiscal year1 2024/2Q IACF (JPY millions) 2,364 2,553 2,686 2,547 2,445 ’24/3Q ’24/4Q ’25/1Q ’25/2Q Quarter :Insurance acquisition cash flows / AP of new business :Insurance acquisition cash flows per new business (JPY thousands) 123 3.1 3.0 1. Figure for FY2021 is for reference use only as it is before date of transition to IFRS. 119 (Fiscal year) Individual life
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31 3,896 4,715 4,935 5,352 19.4% 20.7% 18.4% 16.7% 1,294 1,463 1,379 1,252 16.1% 17.8% 16.3% 14.4% 2021 ’22 ’23 ’24 ’25/1H Fiscal year2 2024/2Q ’24/3Q ’24/4Q ’25/1Q ’25/2Q Quarter (Fiscal year) Operating Expenses Ratio1 :Operating Expenses Ratio（％） :Operating expenses excl. insurance acquisition cash flows (JPY millions) 1. Ratio of operating expenses excluding IACF divided by average in-force annualized premium for the period (annualized). 2. Figure for FY2021 is for reference use only as it is before date of transition to IFRS. 14.7% 1,308 14.6% 2,561 (Fiscal year)
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32 Summary IFRS P/L (Quarter) (JPY millions) Items 2024/2Q 2024/3Q 2024/4Q 2025/1Q 2025/2Q Notes on QonQ change Insurance service results 2,224 2,628 2,383 2,945 3,143 Expected claims minus incurred claims1 (19) 153 12 364 308 Risk adjustment release 405 399 416 404 420 CSM release 1,834 1,842 1,898 1,871 1,974 Reinsurance results (72) (354) (291) (368) (515) Due to decrease in individual life and GCL claim payments Results from GCL2 175 651 475 730 1,073 Due to increase in premium and decrease in claim payments Financial results3 (395) (10) 33 183 205 Other results (71) (112) (121) (65) (111) Profit before tax 1,757 2,505 2,294 3,063 3,237 Due to increase in insurance service results Net income attributable to owners of the Company 1,265 1,804 1,036 2,177 2,300 1. Applied only for individual life 2. Insurance service results related to contracts measured under the premium allocation approach (excluding reinsurance results) 3. Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense
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33 (JPY millions) Items FY2024 FY2025 （Ref.）Fiscal year １H 1H Insurance revenue 30,081 14,297 16,767 Expected claims 11,170 5,447 5,957 Risk adjustment release 1,612 797 824 CSM release 7,440 3,699 3,845 Recovery of IACF 4,143 2,008 2,276 Others (83) (40) (51) Premium income of GCL1 5,797 2,385 3,913 Insurance service expenses 19,575 9,448 9,795 Incurred claims（Individual life） 10,978 5,421 5,285 Incurred claims（GCL） 4,221 1,937 2,109 Amortization of IACF 4,143 2,008 2,276 Others 231 81 123 Reinsurance results (929) (283) (883) Insurance service results 9,576 4,565 6,089 Breakdown of Insurance Service Results 1. Insurance revenue related to contracts measured under the premium allocation approach
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34 Breakdown of Financial Results (JPY millions) Items FY2024/1H FY2025/1H Change Investment results (9) 386 396 Interest income 467 596 129 Impairment losses on financial assets, net (3) (1) 2 Other investment income (473) (207) 265 Insurance finance income (expense) (56) (6) 49 Reinsurance finance income (expense) 9 8 (0) Financial results (57) 388 445 ◼ Increase due to higher interest income from purchases of corporate bonds, and recovery from foreign exchange losses
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35 Detail of Bond Portfolio1 (JPY millions) Available-for-Sale Held-to-Maturity Total JPY Bonds 15,778 38,961 54,740 Foreign Currency Bonds 13,675 — 13,675 Non-Currency Hedged 2,052 — 2,052 Currency Hedged 11,622 — 11,622 As of September 30, 2025 1. Based on J-GAAP balance sheet 2. Calculated by Lifenet Duration2 4 years 6 years 5 years Duration2 4 years
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36 CSM Movement 2025/03 2025/09 CSM, beginning of the period 92,059 New business CSM 2,172 Interest accretion 509 Impact of assumption changes, etc. 3,147 Amortization in current period (3,845) CSM, end of the period 94,043 (JPY millions) Items FY2024 FY2025/1H CSM, beginning of the period 92,173 92,059 New business CSM 3,486 2,172 Interest accretion 952 509 Assumption changes, etc. 2,887 3,147 Amortization of CSM (7,440) (3,845) CSM, end of the period 92,059 94,043 （YY/MM） Recorded as insurance revenue on PL
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37 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 (JPY billions) Amount Expected timing when CSM is recognized in PL A+year 1 A＋year 2 A＋year 3 A＋year 4 A＋year 5 A+year 6 and more In-force CSM As of Sep. 2025 (A) 94.0 7.5 7.1 6.8 6.5 6.1 59.8 New Business CSM (B) A + year 1 XX X X X X X XX A + year 2 XX X X X X XX A + year 3 XX X X X XX A + year 4 XX X X XX A + year 5 XX X XX CSM release （A+B） XX XX XX XX XX XXX Future allocation of CSM + Fore- cast Actual +
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38 Comprehensive Equity Sensitivity Analysis1 1. For each sensitivity, only one specific assumption is changed and other assumptions remain unchanged. It should be noted thatthe effect of the change of more than one assumption at a time is likely to be different from the sum of sensitivities carried out separately. 2. Aggregation of insurance contracts and reinsurance contracts with tax effect (28.9%) adjusted. 3. Impact of a parallel upward or downward shift for all duration in interest rates ◼ Impacts of changes in assumptions (sensitivities) (JPY millions) Changes in Comprehensive Equity (CE) as of Sep. 30, 2025 Changes in CE % changes Of which changes in CSM2 Comprehensive Equity as of Sep. 30, 2025 175,566 ー 62,453 1.0% increase in risk-free rate3 (8,631) (4.9％) ー 1.0% decrease in risk-free rate3 9,389 5.3％ ー 0.5% increase in risk-free rate3 (4,407) (2.5%) ー 0.5% decrease in risk-free rate3 4,588 2.6% ー 10% decrease in equity and real estate value and other (459) (0.3%) ー 10% decrease in operating expenses rate 6,214 3.5% 5,193 10% decrease in surrender and lapse rate 2,059 1.2% 1,770 5% decrease in claim incidence rates for life business 6,871 3.9% 6,876 10% decrease in non-renewal rate 6,103 3.5% 6,103
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39 Impact on CE by Rising Interest Rates Contract value2 PV Premium income PV Claim payment PV Maint. expenses IACF Claim payment IACF ① ② Maint. expense Risk Adj. Premium income ③ Present value Insurance CF’s Contract value Interest rising ③ Decrease Valuation loss but not decrease in future profit Amount of decrease ①＞② …… …… ◼ Due to product characteristics, future revenue surpasses expenditures in insurance CF’s, positive on CE as contract value ◼ CE would be decreased through valuation losses with rising interest rates but the impact would be limited1 ①Decrease ②Decrease 1. Impact of a parallel upward or downward shift for all duration in interest rates 2. Before tax adjustment
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40 30% 66% 4% 76% 13% 11% Composition Ratios of Required Capital1 Insurance risk Market risk Credit risk Market risk Credit risk Insurance risk Other risk Other risk 1. Ratio to the total risk before diversifying effect and tax effect 2. As of March 2025 3. FY2023 data of life insurance (Non-consolidated basis) Source: Overview of the Results of the 2024 Field Test on Economic Value-based Evaluation and Supervisory Methods (Japan Financial Services Agency, June 2025) ◼ Due to our focus on protection products, insurance risk constitutes majority of the risk profile Industry average3Lifenet2
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41 Solvency Margin Ratio Calculation 1. 90% of the valuation difference on available-for-sale securities and deferred gains or losses on hedges (pre-tax) (if negative, 100%) 2. Items that do not apply to the Company or for which the amount is minimal have been omitted, except for certain bracketed items. Total amount of solvency margin <numerator> 48,238 Solvency margin ratio 1,630.7％ Insurance risk R1 2,992 Medical insurance risk R8 1,207 Assumed interest rate risk R2 4 Asset management risk R3 3,812 [Minimum guarantee risk] R7 － Business management risk R4 240 Total amount of risk/2 < the denominator> 5,916/2 ( (𝑅 1 + 𝑅 8)2 + (𝑅 2 + 𝑅 3 + 𝑅 7)2 + 𝑅 4)/2 Risk of change in mortality rate (calculated based on value of policies in force) Risk of change in medical incidence rate (hospital admission rate , etc.) Risk that the actual investment return will fall below the expected return used as a basis for calculating policy reserves Risk related to products, such as variable annuities with minimum guarantees [Credit risk] Risk that asset values decline due to deterioration in financial condition of creditees [Price fluctuation risk]Risk of incurring losses due to decline in market value of stocks and bonds, etc. 3% of the total of the amounts of the other 5 risks (in the Company’s case) = ÷ Including liabilities with strong capital characteristics such as price fluctuation reserves and contingency reserves As of September 30, 2025 Net assets 22,229 Policy reserves 70,664 Tangible fixed assets 493 Cash and deposits 11,099 Securities 61,200 Intangible fixed assets 1,991 Other assets 7,975 Other liabilities 3,108 Excess over the full- Zillmerized reserve 19,729 Capital stock and other assets 20,372 Price fluctuation reserves 168 Deferred tax liabilities on available-for-sale securities 1 680 Contingency reserves 5,617 Money held in trust 14,159 Valuation difference on securities available-for-sale 1,670 1 Reserves for outstanding claims 1,992 (JPY millions) 【Ref.】 Consolidated Solvency margin ratio 1,704.5% Deferred tax liabilities excluding available-for-sale securities 0Monetary claims bought 1,999
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42 ◼ IFRS adoption better presents periodic performance and profitability from policies-in-force ◼ Capital adequacy and dividends are regulated by statutory accounting standards (J-GAAP) IFRS Reporting IFRS 17 Statutory Accounting （J-GAAP） Comprehensive Equity (CE) Important perspective Recognition of revenue based on the retention of in-force business Financial soundness for policyholder protection Economic value of insurance policies including future profit Timing of profit recognition The expected profit is allocated over the term of the policy. Acquisition expense is recognized at the time of acquisition. The expected profit for the policy period is immediately recognized. loss present value of profit・・・・ Year3 Year4 Year1 Year2 Year3 Year4 profit ・・・・profit Year1 Year2 Year1
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43 (JPY millions) Items FY2024 FY2025/1H Total assets 89,866 98,920 Cash and deposits 16,044 11,099 Money held in trust 13,202 14,159 Securities 52,045 61,200 Total liabilities 71,796 76,690 Policy reserves and other 69,020 72,657 Total net assets 18,069 22,229 Retained earnings (34,696) (32,978) Items FY2024 FY2024/1H FY2025/1H Ordinary income 41,994 20,291 25,558 Insurance premiums and other 41,438 19,942 24,924 Ordinary expenses 45,022 22,074 23,158 Insurance claims and other 20,569 10,079 11,667 Provision for policy reserves and other 8,551 4,131 3,860 Operating expenses 13,296 6,278 6,641 Ordinary profit (loss) (3,027) (1,782) 2,400 Net income (loss) (3,052) (1,793) 1,717 Summary J-GAAP P/L & B/S ◼ Strengthen modified co-insurance in FY2025 to mitigate the decline in capital and aim to improve the financial condition
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44 Dividend Policy : New business : Policies-in-force : J-GAAP profit and loss Profit Loss Policies-in-force & profit and loss（illustrative image） Retained earnings are realized after generating profit 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. Marketing expenses are recorded in lump-sum on the initial year of insurance period ◼ Aim for the increase in total shareholder return by capital gain1