Slides
Page 1
Securities Code : 7157 TSE Prime LiFепет LIFENET INSURANCE COMPANY Presentation Material for Investors First Quarter for Fiscal 2026 LIFENET INSURANCE COMPANY August 12 , 2026
Page 2
1 １. Main Initiatives for 1Q of FY2026 2. Financial Results for 1Q of FY2026 Table of Contents
Page 3
2 1Q for Fiscal 2026 Key Highlights Corporate Value Growth Profitability Comprehensive Equity1 (CE) ¥174,854mn （YoY 102.6%） Annualized premium2 of policies-in-force ¥37,810mn （YoY 107.4%） Insurance service results ¥2,104mn （ YoY 71.5%） Key Indicators ◼ Advanced JAL alliance, establishing framework for JAL mileage ecosystem customers ◼ Steady progress in priority areas, driving individual life insurance growth through both direct and partner channels ◼ Published first Integrated Report to deepen capital market dialogue on mid- to long-term value creation 1. Comprehensive Equity is an indicator defined by the Lifenet. 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 Compa ny 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 and other policies -in-force. 2. The amount of money is equivalent to what is to be paid to have the insurance coverage for one year. All payments are monthly installments, thus the annualized premium is calculated as multiplying the monthly premium (for GCL, expected premium income for the next month based on in-force business. However, if a premium rate revision is implemented at the start of the period following t he relevant quarter, it is calculated based on the rate prior to the revision.) by 12. The same will apply hereafter. Notable Achievements
Page 4
3 Progress on the Capital and Business Alliance with JAL ◼ Completed capital transaction in June 2026, aiming to maximize LTV targeting JAL Mileage Bank (JMB) members Alignment of strategies Highly engaged JMB member base Mid-term business plan Strengthening "Embedded" JAL Vision 2035 Expansion of "Non-aviation Domains" Maximizing LTV through long-lasting trust and engagement with customers From June 2026: Holding Alliance Promotion Committee meetings Significance Foundation • Characteristics of Customers in the JAL Ecosystem Driven by the experiential value of "earning in daily life and spending on extraordinary experiences" • High Affinity with "Life Insurance" as a Long-Term Stock Business Model Customer segment seeking brand affinity "If travel and daily life are with JAL, let's align insurance with JAL too"
Page 5
4 High external recognition supporting the Ultimate Insurance Experience Initiatives in Priority Areas Tech & Services Rebranding Embedded Kakaku.com Insurance Awards 2026 (Term Life)4 No.1 10 consecutive years 1. GCL stands for Group Credit Life Insurance 2. Zaikai BEST AI AWARD recognizes companies achieving outstanding results through AI technology. "Zaikai BEST AI 100" is awarded to 100 companies transforming business processes through innovative initiatives. 3. Survey: Oricon ME Co., Ltd. Survey period: September 1-22 2025, August 26-September 24 2024 and September 26-October 4 2023, Number of respondents: 10,995 4. The insurance product with the highest number of applications across all sales channels among 15 products in the Life Insurance category (term life insurance) on Kakaku.com Insurance during the period from January 1 to December 31, 2025. Winner of this same award for 10 consecutive years since 2017. 2026 Oricon Customer Satisfaction Survey3 Life Insurance Overall No.1 2 consecutive years First insurance company selected ◼ Delivering the “Ultimate Insurance Experience” with high external recognition • Promoted AI agent adoption to boost productivity & lower the expense ratio • Enhanced the LIFENET manifesto-based branding via new TV ads • Expanded entry ages for evolving customer needs • Individual: Sustained growth momentum despite partnership structure shift • GCL1: Launched with THE KYOTO SHINKIN BANK Zaikai BEST AI 1002
Page 6
5 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) Growth Strategy Human Resources Strategy Diversity Growth Opportunities Overall engagement score: continuous improvement Ratio of decision-makers： Women 30%+, Under 30s 15%+ FY2024-2028 Mid-term Business Plan
Page 7
6 １. Main Initiatives for 1Q of FY2026 2. Financial Results for 1Q of FY2026 Table of Contents
Page 8
7 Annualized Premium of Policies-in-Force 22,142 24,408 25,772 27,290 29,176 3,735 7,923 8,634 2025/062023/06 2024/062022/06 2026/06 37,810mn 35,214 29,507 :AP1 of policies-in-force for individual life (JPY millions) :AP1 of policies-in-force for GCL2 (JPY millions) YoY ＋7.4％ Group credit life insurance Individual life insurance （YY/MM） 1. AP stands for Annualized premium (The same will apply hereafter) 2. GCL stands for Group Credit Life Insurance (The same will apply hereafter) ◼ Resulted in ¥37,810mn and achieved steady growth of 7.4% YoY
Page 9
8 Policies-in-Force Movement 35,214 35,805 36,386 37,290 430 160 433 148 564 339 2025/06 2025/09 2026/032025/12 457 62 2026/06 ◼ Maintained steady growth trend, with individual life growth offsetting the impact of GCL premium rate revision in April ¥37,810mn :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) YoY +7.4％ AP of policies-in-force Net increase of individual life Net increase of GCL （YY/MM）
Page 10
9 ◼ Insurance service results reached ¥2,104mn, with quarterly profit attributable to owners of parent at ¥1,637mn Summary IFRS P/L Items 2025/1Q 2026/1Q Change Insurance service results 2,945 2,104 (840) Financial results1 183 323 140 Other results (65) (124) (59) Profit before tax 3,063 2,303 (759) Net income attributable to owners of the Company 2,177 1,637 (540) (JPY millions) 1. Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense
Page 11
10 ◼ Decreased YoY due to high claim payments, compared to a low level in prior year period Insurance Service Results 6,618 8,222 9,576 11,606 1,651 2,274 2,340 2,945 2022 2023 2024 2025 2026/1Q 1 vs. forecast 18.8％ Business forecast 11,200 ￥2,104ｍn1 (fiscal year) 1. COVID-19 related claims was ¥1,378mn in FY2022 and ¥36mn in FY2023. It is also included in FY2024 onwards, but detailed calculation has not been performed. YoY 71.5％ 1 :Insurance service results (1Q, JPY millions) :Insurance service results (fiscal year, JPY millions)
Page 12
11 ◼ CSM release contributed, but weighed down by higher claim payments in individual life and GCL Insurance Service Results Analysis 2026/1Q2025/1Q Expected minus incurred (337) Risk adjustment release 14 CSM release 157 Reinsurance results 438 Others (33) Insurance service results 2,945 Insurance service results 2,104 (JPY millions) Items 2025/1Q 2026/1Q Change Expected claims minus incurred claims 364 26 (337) Risk adjustment release 404 419 14 CSM release 1,871 2,029 157 Reinsurance results (368) 70 438 Others (58) (91) (33) Results from GCL1 730 (349) (1,080) Insurance service results 2,945 2,104 (840) Results from GCL (1,080) 1. Insurance service results related to GCL contracts applying the Premium Allocation Approach (PAA), excluding result from reinsurance contracts. YoY - ¥840mn
Page 13
12 Performance for Key Indicators (As of June 30, 2026) ◼ Steadily contributed to corporate value and growth, while profit turned negative due to higher claim payments ◼ Launched business with The KYOTO SHINKIN BANK in July 2026 Progress of GCL Business AP of policies-in-force GCL Contracts Value GCL results ¥15,054mn ¥8,634mn ¥(349)mn 18.8% excl. IFRS equity Shares of CE: 8.6% Shares of total AP: 22.8% Shares of insurance service results: - Corporate Value Growth Profitability
Page 14
13 ◼ Maintained strong 17% CAGR since 2012 IPO despite slight decrease vs. prior FY-end Movement of Management Indicators 90,870 92,109 95,600 94,683 62,222 61,140 65,232 65,116 6,709 13,840 15,315 15,054 159,802 167,090 176,149 ¥1,991 ¥2,080 ¥2,193 （YY/MM)25/03 26/0626/03 ¥2,176 24/0312/03 174,854 18,547 : GCL contracts value (JPY millions) : IFRS Equity (JPY millions) : CSM after tax (JPY millions) : CE per share（JPY）2 : EEV (JPY millions) 1. Lifenet’s EEV is calculated following the EEV Principles and Guidance and in terms of allowance for risk, MCEV Principles (The European Insurance CFO Forum Market Consistent Embedded Value Principles©) is referred. From fiscal 2016 onward, a predetermined ultimate forward rate has been used to extrapolate the level of ultra-long-term interest rates past the last liquid data point. This method of extrapolation has also been used to restate EEV as of March 31, 2016. 2. EEV per share before March 2023 European Embedded Value (EEV)1 Comprehensive Equity ¥441
Page 15
14 Shares of Advance Create Co., Ltd. Changing Factors of Comprehensive Equity (CE) ◼ New business CSM grew, but management effort gains were limited ◼ Decreased on failure to absorb rising interest rate impact 1. After tax effect (28.9%) 2. Net income attributable to owners of the Company 2026/03 2026/06 176,149 Amortization of CSM (1,355) GCL contracts value movement 114 174,854 New business CSM 726 Net income2 1,637 Interest accretion 188 Other comprehensive income (Impact of interest rate) (1,588) Impact of assumption changes, etc. 324 176,818 Impact of interest rate on GCL contract value (375) Movement related to strategic investment stocks (966) Management efforts Others : GCL movement (JPY millions)1 : CSM movement (JPY millions)1 : Equity movement (JPY millions)1 (YY/MM)
Page 16
15 Key Drivers of CE Changes and Linkage to P＆L New business CSM ◼ Business performance In-force CSM ◼ Changes in insurance assumptions GCL contracts value IFRS Equity ◼ Business performance ◼ Changes in insurance assumptions ◼ Interest rate fluctuations ◼ Profit recognition ◼ Interest rate fluctuations ◼ Profit from CSM release CE Indivi- dual Life GCL ◼ Annual insurance results directly linked to profit CSM release Key factors of change P&L features ◼ Current CSM growth in individual life drives future annual profit year 1 year 2 year 3 year 4 year 5 year 6 and more Future allocation of CSM
Page 17
16 ◼ Maintained business forecasts announced in May 2026 Consolidated Business Forecasts for FY2026 1,000 37,290 2027年3月末 11,606 (JPY millions) FY2025 FY2026 Results 1Q Results Forecasts Annualized premium of policies-in-force 37,290 37,810 41,300 Insurance revenue 34,388 9,030 37,500 Insurance service results 11,606 2,104 11,200 Net income attributable to owners of the Company 8,041 1,637 8,200 Favorable variance in claims experience vs. forecast Approx. Growth Profitability AP of policies-in-force (JPY millions) 2026/03 2027/03 Individual approx. 2,000 GCL approx. 1,900 Business forecasts 41,300 FY2025 FY2026 Insurance service results (JPY millions) Business forecasts 11,200
Page 18
17 ◼ Focusing on both expanding corporate value and improving market valuation as Price to CE ratio continues below 1.0x Current Market Evaluation CE per Share1 Stock Price2 Price/CE per Share1 （月末） （月末） ：1株当たりCE (円) ：CE（百万円） 73,431 95,140 116,604 124,666 159,802 167,090 176,149 174,854 1,430 1,570 1,673 1,788 1,991 2,080 2,193 2,176 2020/03 2021/03 2022/03 2023/03 2024/03 2025/03 2026/03 2026/06 599 1,266 561 1,162 1,512 1,742 2,011 1,700 2020/03 2021/03 2022/03 2023/03 2024/03 2025/03 2026/03 2026/06 ¥ 0.42 0.81 0.34 0.65 0.76 0.84 0.92 0.78 0.00 1.00 2.00 2020/03 2021/03 2022/03 2023/03 2024/03 2025/03 2026/03 2026/06 X 2026/08 2026/08 （YY/MM） 1. EEV per share and price/EEV before the end of March 2023 2. Closing price as of August 10, 2026
Page 19
18 ◼ Increasing the PCE ratio by enhancing corporate value and market valuation through individual and group insurance Initiatives to Improve the PCE Ratio Expanding CSM through enhanced efficiency in insurance acquisition cash flows and operating expenses. • Executing Initiatives for Mid-term Sales Efficiency • Improving running cost per unit through productivity gains Enhancing corporate value (CE) Expanding business scale Improving profitability Growth of individual and group insurance businesses based on priority areas • Driving renewed growth in individual insurance via advanced strategic marketing • Driving business expansion in group insurance by securing new partner banks Strengthening management and governance structures Expanding the investor base and improving market liquidity Strong commitment to shareholder value Proactive and open dialogue with shareholders and investors Initiatives to improve market valuation Details for page25
Page 20
19 ◼ Published Integrated Report (English edition coming Sept 2026) to deepen dialogue on value creation New Initiatives for Strengthening Dialogue Main Points • Messages from President and Executives on the future vision • Evolution of customer experience accelerated by technology and AI • Expanding value creation through co-creation with partners • Human resources strategy and governance supporting sustainable growth https://ir.lifenet-seimei.co.jp/ja/ir/library/disclosure.html
Page 21
20 Toward Accelerating Future Growth ◼ Aiming for scale expansion and profitability improvement through online model strengths and deepening partner strategy AI-era competitive advantage created by the"Ultimate Insurance Experience" • Accelerate online life insurer differentiation by driving brand strengthening through Individual Number System portal1 integration • Drive growth and productivity using AI tailwinds with a lean expert team and online model Sustainable scale expansion driven by partner strategy • Individual life: Expand through two pillars, deepening ecosystems (centered on KDDI, SMBC Group, JAL) and adding new alliance partners • GCL: Accelerate alliance expansion with financial institutions, leveraging competitive premiums and operational strengths Future-oriented business development • Explore growth opportunities (incl. M&A) by expanding strategic options through J-GAAP profitability 1. Individual Number System is a system in which all people living in Japan are given an individual identification number for the purpose of improving convenience and others for citizens. It is also available online and you can apply to services online related to parenting by the one-stop service and can receive notifications from administrative organizations
Page 22
21 ◼ Aim to achieve the FY2028 management targets by realizing sustainable growth through growth investments in priority areas 2029/032022/03 2023/03 2024/03 159 1241 133 2025/03 167 2026/03 176 Achieving Mid-term Business Plan CE growth image ¥200-240bn Stock price approx.10% ¥3,000+ Annual growth rate of CE per share Goals in Fiscal 2028 1. For reference use only as it is before date of transition to IFRS (YY/MM)
Page 23
This document is a translation of the original Japanese document, prepared and provided solely for readers' convenience. In case of any discrepancy or dispute, the Japanese original shall prevail. Forward-looking statements in this material, such as financial forecasts, plans, outlooks, and strategies, are based on information available at the time of preparation and involve inherent risks and uncertainties. Actual results may differ materially from these statements due to changes in the operating environment and other factors. The Company assumes no liability for any damages arising from the use of the information contained in this document. Furthermore, the Company undertakes no obligation to update or publicly release any revisions to these forward-looking statements to reflect new information or future events. In addition, information concerning the Company and other entities contained herein is derived from publicly available sources, and the Company makes no representation or guarantee regarding its accuracy. https://ir.lifenet-seimei.co.jp/en/
Page 24
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
Page 25
Appendix
Page 26
25 Current initiatives to Improve Market Valuation Improvement of management and governance structures Expansion of the investor base and improving market liquidity Strong commitment to shareholder value Proactive and open dialogue with shareholders and investors • Disclosing cost of capital (6-8%) to facilitate ongoing dialogue, with reviews planned based on feedback • Promoting valuable risk-taking in alignment with the implementation of economic value-based solvency regulations • Published new Integrated Report to communicate mid- to long-term value creation story • Setting share price and CE per share (an indicator of corporate value) as financial targets for the mid-term business plan • Attracting index fund inflows following the Prime Market listing • Proactive on-site visits to international investors • Promoting initiatives for individual investors, including specialized seminars EX: Continuing regular meetings of independent outside directors, and reforming Board operations by refining submission criteria to place a greater emphasis on discussion • Continuing initiatives to enhance the functionality of the Board of Directors New
Page 27
26 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).
Page 28
27 Glossary 2 Glossary Explanation Comprehensive Equity (CE) An indicator defined by Lifenet. 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 Company 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 as it includes the value of future profits of policies-in-force. Group Credit Life Insurance (GCL) contracts value An indicator defined by Lifenet. It is the value of future IFRS earnings for GCL and other 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 and other 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. ESR (Economic Solvency Ratio) 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 is 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 Company 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.
Page 29
28 Breakdown of Policies-in-Force Individual life 2025/06 2026/06 Component ratio Number of policies-in-force 647,914 698,946 100% - Term Life 313,522 333,334 48% - Whole-life Medical & Term Medical 178,209 193,807 28% - Long-term Disability 72,634 77,047 11% - Whole-life Cancer &Term Cancer 76,426 87,302 12% - Others1 7,123 7,456 1% Sum insured of policies-in-force2 (JPY millions) 4,009,929 4,227,153 Number of policyholders 407,592 435,245 1. Term Medical Care and Dementia 2. Sum insured of policies-in-force are the sum of death coverage, and do not include third-sector insurance.
Page 30
29 Annualized Premium / Number of New Business Individual life 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 20,474 21,024 25,525 969 1,137 923 889 747 639 675 820 734 689 681 808 792 806 821 963 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2022年度 2023年度 2024年度 2025年度 2026年度FY2026 844 22,244 :AP1 of new business (JPY millions) :Number of new business FY2022 FY2023 FY2024 FY2025 1. The amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments are monthly installments, thus the annualized premium is calculated as multiplying the monthly premium by 12.
Page 31
30 Surrender and Lapse Ratio Individual life 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% 5.4% 5.4% 5.5% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2022年度 2023年度 2024年度 2025年度 2026年度 5.2% :Surrender and lapse ratio1（%） FY2022 FY2023 FY2024 FY2025 FY2026 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.
Page 32
31 Insurance Acquisition Cash Flows (IACF) Efficiency Individual life 105 129 133 120 2.7 3.3 3.4 3.1 127 119 117 117 3.2 3.0 3.0 3.1 2022 IACF (JPY millions) 10,390 9,377 9,814 10,458 2,748 23 24 25 26/1Q IACF (JPY millions) 2,547 2,445 2,471 2,995 2,748 2025/1Q 25/2Q 25/3Q 25/4Q 123 3.3 123 3.3 26/1Q :Insurance acquisition cash flows / AP of new business :Insurance acquisition cash flows per new business (JPY thousands) Fiscal year Quarter (fiscal year) (fiscal year)
Page 33
32 Operating Expenses Ratio1 4,715 4,935 5,352 5,392 20.7% 18.4% 16.7% 15.1% 1,252 1,308 1,374 1,456 14.4% 14.7% 15.2% 15.8% 2022 23 24 25 26/1Q 2025/1Q 25/2Q 25/3Q 25/4Q 26/1Q 14.8% 1,3871,387 14.8% :Operating Expenses Ratio（％） :Operating expenses excl. insurance acquisition cash flows (JPY millions) Fiscal year Quarter (fiscal year) (fiscal year) 1. Ratio of operating expenses excluding IACF divided by average in-force annualized premium for the period (annualized).
Page 34
33 Summary IFRS P/L (Quarter) (JPY millions) Items 2025/1Q 2025/2Q 2025/3Q 2025/4Q 2026/1Q Note Insurance service results 2,945 3,143 2,669 2,847 2,104 Expected claims minus incurred claims 364 308 58 (167) 26 Risk adjustment release 404 420 416 434 419 CSM release 1,871 1,974 1,935 2,090 2,029 Reinsurance results (368) (515) (223) (281) 70 Results from GCL1 730 1,073 498 626 (349) Increased in claims Financial results2 183 205 (53) (68) 323 Increased due to the absence of loss on sales of bonds Other results (65) (111) (135) (171) (124) Profit before tax 3,063 3,237 2,480 2,608 2,303 Decreased in insurance service results Net income attributable to owners of the Company 2,177 2,300 1,762 1,800 1,637 1. Insurance service results related to GCL contracts applying the Premium Allocation Approach (PAA), excluding result from reinsurance contracts. 2. Total of investment results from financial assets, insurance finance income or expense and reinsurance finance income or expense
Page 35
34 Breakdown of Insurance Service Results (JPY millions) Items FY2025 FY2026 （Ref.）Fiscal Year １Q 1Q Insurance revenue 34,388 8,222 9,030 Expected claims 12,197 2,944 3,192 Risk adjustment release 1,676 404 419 CSM release 7,871 1,871 2,029 Recovery of IACF 4,722 1,123 1,290 Others (97) (40) (40) Premium income of GCL etc. 8,018 1,918 2,138 Insurance service expenses 21,393 4,909 6,995 Incurred claims（Individual life） 11,633 2,580 3,165 Incurred claims（GCL） 5,089 1,187 2,481 Amortization of IACF 4,722 1,123 1,290 Others (52) 18 57 Reinsurance results (1,388) (368) 70 Insurance service results 11,606 2,945 2,104
Page 36
35 (JPY millions) ◼ Increased due to higher interest income from additional corporate bond purchases, etc Breakdown of Financial Results Items FY2025/1Q FY2026/1Q Change Investment results 184 286 102 Interest income 284 358 73 Impairment losses on financial assets, net (0) (0) 0 Other investment income (99) (71) 28 Insurance finance income (expense) (5) 33 39 Reinsurance finance income (expense) 4 3 (0) Financial results 183 323 140
Page 37
36 Detail of Bond Portfolio1 (JPY millions) Available-for-Sale Held-to-Maturity Total JPY Bonds 13,687 44,821 58,508 Foreign Currency Bonds 15,221 — 15,221 Non-Currency Hedged 2,284 — 2,284 Currency Hedged 12,937 — 12,937 As of June 30, 2026 1. Based on J-GAAP balance sheet 2. Calculated by Lifenet Duration2 3 years 5 years 4 years Duration2 4 years
Page 38
37 CSM Movement 2026/03 New business CSM 1,022 Interest accretion 280 Impact of assumption changes, etc. 480 Amortization in current period (2,029) CSM, end of the period 97,138 (JPY Millions) Items FY2025 FY2026/1Q CSM, beginning of the period 92,059 97,385 New business CSM 4,726 1,022 Interest accretion 1,020 280 Assumption changes, etc. 7,450 480 Amortization of CSM (7,871) (2,029) CSM, end of the period 97,385 97,138 CSM, beginning of the period 97,385 Recorded as insurance revenue on PL 2026/06 （YY/MM）
Page 39
38 CSM Future Allocation (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 Jun. 2026 (A) 97.1 7.9 7.5 7.2 6.8 6.3 61.2 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 + Fore- cast Actual + Future allocation of CSM ◼ 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
Page 40
39 ◼ Impacts of changes in assumptions (sensitivities) Comprehensive Equity Sensitivity Analysis1 (JPY millions) Changes in Comprehensive Equity (CE) as of June 30, 2026 Changes in CE % changes Of which changes in CSM2 Comprehensive Equity as of June 30, 2026 174,854 ー 65,116 1.0% increase in risk-free rate3 (8,201) (4.7％) ー 1.0% decrease in risk-free rate3 8,836 5.1％ ー 0.5% increase in risk-free rate3 (4,181) (2.4%) ー 0.5% decrease in risk-free rate3 4,341 2.5% ー 10% decrease in equity and real estate value and other (184) (0.1%) ー 10% decrease in operating expenses rate 6,060 3.5% 5,207 10% decrease in surrender and lapse rate 2,321 1.3% 1,960 5% decrease in claim incidence rates for life business 7,398 4.2% 7,454 10% decrease in non-renewal rate 6,377 3.6% 6,376 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
Page 41
40 Impact of Rising Interest Rates on CE 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 and 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 parallel upward or downward shifts in interest rates across all maturities 2. Before tax adjustments
Page 42
41 Conceptual Illustration of Internal ESR1 [Reference] Regulatory ESR 339% Other assets Other assets Eligible Capital 143,736 ÷ Internal ESR 402％ Cash, deposits, and securities Liabilities Liabilities Cash, deposits, and securities Eligible Capital 143,736 CSM 97,138 PV Future CF's & Risk Adjustment 124,672 Insurance contract assets 27,534 Equity 94,683 Equity 94,683 = Economic Value-based Net Assets 145,076 Required capital 35,752 Insurance underwriting risk 36,191 Catastrophe risk 11,004 Market risk 10,421 Credit risk 1,636 Operational risk 1,413 Diversification effect (14,149) Tax effects (10,766) As of June 30, 20262 JPY millions Consolidated Statement of Financial Position (IFRS) Differences in standards and reflection of tax effects 1. While actual calculations for the economic value-based balance sheet are derived from Japanese GAAP, this illustration employs acomparison with IFRS to facilitate conceptual understanding 2. The figures for the ESR and internal ESR as of June 30, 2026 are for reference only.
Page 43
42 146,666 143,736 37,175 35,752 2026年3月末 2026年6月末 Internal ESR1 ESR 394％ Internal ESR Eligible capital Required capital As of June 30, 2026 402% 143,736 35,752 0.5% increase in risk-free rate2 16% (2,256) (1,898) 0.5% decrease in risk-free rate2 (16%) 2,267 2,112 10% decrease in equity and real estate value and other (0%) (184) (19) 10% decrease in operating expenses rate 14% 4,616 (112) 10% decrease in surrender and lapse rate (8%) 1,514 1,150 5% decrease in claim incidence rates for life business 7% 5,534 792 10% decrease in non-renewal rate (4%) 3,504 1,269 ◼ Sustained robust financial soundness through valuable risk-taking with internal ESR of 402% Internal ESR Internal ESR Sensitivity Analysis ：Required capital (JPY millions) ：Eligible capital (JPY millions) Eligible capital changes Required capital changes Decrease mainly due to the impact of rising interest rates. Decrease mainly due to the impact of rising interest rates. 1. The figures for the internal ESR as of June 30, 2026 are for reference only. 2. Impact of a 0.5% parallel upward or downward shift in interest rates 3. Composition of required capital for Regulatory ESR (calculated as 100% of total risk before diversification and tax effects). 4. As of March 31, 2026 5. FY2024 data of life insurance (Non-consolidated basis) Source: Overview of the Results of the 2025 Field Test on Economic Value -based Evaluation and Supervisory Methods (Japan Financial Services Agency, March 2025) Breakdown of Required Capital3 18% 12% 65% 4% Industry average5Lifenet4 70％ 31％ ：Other risk ：Market and credit risks Insurance risk Changes as of June 30, 2026（based on parallel shift） JPY millions 2026/03 2026/06 ESR 402％
Page 44
43 IFRS Reporting ◼ IFRS adoption better presents periodic performance and profitability from policies-in-force ◼ Capital adequacy and dividends are regulated by statutory accounting (J-GAAP) Statutory Accounting （J-GAAP） Embedded Value IFRS 17 Important perspective Financial soundness for policyholder protection Economic value of insurance policies including future profit Recognition of revenue based on the retention of in-force business Timing of profit recognition Acquisition expense is recognized at the time of acquisition. The expected profit for the policy period is immediately recognized. The expected profit is allocated over the term of the policy. loss present value of profit profit ・・・・ Year1 Year2 Year3 Year4 Year1 Year1 Year2 Year3 Year4 profit ・・・・
Page 45
44 Summary J-GAAP P/L & B/S (JPY millions) Items End of FY2025 FY2026/1Q Total assets 103,745 103,749 Cash and deposits 11,321 11,725 Money held in trust 14,975 15,278 Securities 60,998 61,101 Total liabilities 81,265 82,419 Policy reserves and other 76,811 79,526 Total net assets 22,479 21,329 Retained earnings (31,290) (31,176) Items FY2025/1Q FY2026/1Q Ordinary income 12,467 13,805 Insurance premiums and other 12,289 13,500 Ordinary expenses 11,450 13,621 Insurance claims and other 5,666 6,736 Provision for policy reserves and other 1,941 2,715 Operating expenses 3,342 3,633 Ordinary profit (loss) 1,017 184 Net income (loss) 728 114
Page 46
45 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