Thank you very much for joining us today for Sony Financial Group Inc. IR meeting. I am Kuriyama from the finance department. I'll be serving as the moderator today. Now, let me introduce today's speakers, three of them. Sony Financial Group Inc., President and CEO, Representative Corporate Executive Officer, Toshihide Endo. Sony Financial Group Inc., Corporate Executive Officer and CFO, Sadahiko Hayakawa. Sony Life Insurance Co., Ltd., President and Representative Director, Hiroyuki Tsubota. First, I'd like to ask Endo to make presentation. Over to you. I am Endo, the President of Sony Financial Group Inc. Thank you very much for taking time to join our IR meeting today. First, I would like to express our sincere apologies for the significant concern caused to all stakeholders regarding alleged misconduct at Sony Life and related media coverage. Regarding this matter, later in this session, Tsubota, President of Sony Life, will provide an update on the current status of the investigation. Please allow me to continue the presentation while seated. Today, I will review our progress to date and explain our key themes for fiscal year 2026. Following that, CFO Hayakawa will explain our initiatives in the financial domain and will then take your questions during the Q and A session. First, I will review the progress of each business segment. In our core life insurance business, we have steadily expanded our policy portfolio by focusing on families and leveraging advanced life planning tools to provide customized, tailored individual protection. In recent years, we have also responded to diversifying customer needs by incorporating corporate protection and asset formation products as new growth drivers. As shown on the slide, we have achieved high growth even in the mature domestic life insurance market. In the asset formation area, we launched the variable annuity, SOVANI, in fiscal year 2022, and the balance has now reached approximately JPY 2 trillion. In the corporate protection segment, since establishing the corporate strategy division in fiscal year 2021, we have steadily expanded our customer base primarily among small-scale corporations by leveraging our strengths in consultative sales, c ompetitive product offerings, and effective sales initiatives. At the same time, our penetration rate in the overall target small-scale corporates market remains at 8.5% at the end of fiscal year 2025, and we believe there is still ample room for continued strong growth going forward. This slide shows the transition in the product composition of the contract service margin or CSM, which represents future profits. The proportion of capital-light protection-type products, such as variable term insurance for corporate clients and income protection insurance for individuals, is increasing. Protection products, particularly those for corporate clients, offer higher profitability and relatively faster CSM amortization. By shifting toward a CSM mix with a higher proportion of such products, we are accelerating profit growth and see this as a steady improvement in our earnings structure. In the non-life insurance business, we have earned strong customer support through high brand recognition, strong marketing capabilities, and enhanced customer service. In auto insurance, through timely and flexible pricing revisions and disciplined expense control, we have been able to maintain both the number one market share in the direct channel and achieve profitable top-line growth. By leveraging our competitive advantage in the steadily growing direct auto insurance market, we expect to further contribute to group earnings and corporate value. In the banking business, deposit balances have continued to grow steadily, centered on foreign currency deposits driven by high convenience and agile interest rate management. Even when foreign currencies are sold due to exchange rate fluctuations, a large portion of those funds tends to remain as yen deposits at Sony Bank, forming an ecosystem in which total deposits continue to accumulate with foreign currency as the starting point. This cycle also functions as a funding base for the banking business, and together with rising yen interest rates, it is contributing to stable earning growth. Across the group, companies have expanded their customer bases and improved customer satisfaction by embracing the Sony spirit of do what others do not do without being constrained by industry conventions and by placing customers first. Customer satisfaction in each business continues to rank at the top level of the industry, and we will continue to enhance the value we provide to further grow our businesses. Prior to our listing, we advanced group growth strategies, including the development of the corporate market at Sony Life and transformation of our product mix. At the same time, in response to financial challenges at Sony Life that became apparent due to rising interest rates, we have accelerated our countermeasures since fiscal year 2024. To enable sustainable earnings growth under the next Mid-Range Plan starting in fiscal year 2027, we have positioned fiscal year 2026 as the year to solidify our foundation. Two particularly important initiatives this year are strengthening the management foundation with a greater focus on enhancing corporate value and evolving the group strategy to further expand our customer base. The first key theme is strengthening the management foundation for sustainable growth. This includes three group-wide initiatives: incentive design, human capital management, and strengthening management oversight functions, as well as the evolution of ERM management at Sony Life. First, we'd like to talk about incentive design. Upon our listing, we reviewed our compensation framework to place stronger emphasis on capital market perspectives and shareholder value. We introduced a compensation system linked to business performance and stock price, clarifying management's commitment and expanded initiatives such as employees' share ownership to foster group-wide awareness of shareholder value. From a human capital perspective, we will build and utilize a group-wide human capital platform to visualize our human capital and optimize talent allocation to priority management areas. In addition to strengthening key skills such as AI and supporting autonomous career development, we will implement cross-business job rotations and formulate succession plans for key positions to enhance the effective utilization and strengthening of group human capital. Next, regarding governance. In preparation for our listing, we have strengthened our governance framework with a stronger focus on shareholder value. Specifically, we have significantly increased the proportion of outside directors to establish a highly independent board of directors, and under the leadership of directors with deep expertise, we are enhancing the effectiveness of oversight through the board and its committees. Finally, I would like to discuss the evolution of ERM management. Historically, Sony Life operated its businesses based on sales strategies focused on top-line growth, designing products to support those strategies and subsequently hedging the resulting interest rate risk. On the other hand, amid changes in the economic environment, we recognize that under our traditional sales strategy focus, a major challenge was that top-line growth did not translate into bottom-line profit growth, partly due to a delayed response in curbing sales of capital-intensive whole life insurance products. Based on this, we're now shifting toward ERM management that integrates profitability, financial soundness, and risk management. At the core of this shift is three-in-one management, which integrates sales, product, and asset management. By incorporating profitability and financial soundness perspectives from the sales strategy planning stage, we will strengthen the linkage between top-line and bottom-line performance. In the next Mid-Range Plan, we will further incorporate asset management outcomes into sales and product strategies, establishing fully integrated three-in-one management and aiming for sustainable enhancement of corporate value. Second key theme is the evolution of our group strategy to expand our customer base. We are pursuing this strategy along two axes, acquiring new customers and deepening customer engagement. To expand our customer base, we will broaden our customer touchpoints by leveraging our group strategy of Sony Financial Group, as well as collaboration with the Sony Group and external alliances, including partnerships with credit card companies. To deepen customer engagement, we'll enhance the value we provide by expanding and diversifying our services, leveraging AI and DX, thereby strengthening customer relationships. Our group strategy is now transitioning from the planning phase to specific service implementation, and we will roll out services sequentially from fiscal year 2026 through fiscal year 2027. Let me now introduce some of our key initiatives. From Sony Bank, we will roll out services for Sony Life customers that integrate insurance and banking functions, including instant bank account opening between this fiscal year and fiscal year 2027. At Sony Assurance, we are exploring the online offering of Sony Life Insurance products by leveraging its strong brand recognition and customer acquisition capabilities. In non-financial areas as well, through collaboration with the Sony Group and other partners, we will take on the challenge of providing new customer value by leveraging technology and entertainment. In the area of corporate consulting, we are strengthening our capabilities and expanding our service offering. In the field of employee benefits, we will launch a new service called Somot during the fiscal year, contributing to the building and deepening of trusted relationship with business owners. These initiatives are positioned as exploratory efforts aimed at expanding the group's customer base in the future. At the same time, bottom collaboration among group companies is steadily expanding. Expect these efforts to contribute to group medium to long-term growth strategies. Finally, I'll outline our initiatives at Sony Life to strengthen the prevention of misconduct and its early detection. This issue is extremely important from the perspective of group-wide management. On April 1st of this year, Tsubota assumed the position of President of Sony Life and under the new management structure, Sony Financial Group as a holding company and Sony Life are working together as one. From here, Tsubota will explain the key points of the release announced by Sony Life yesterday, including the progress in the verification state of the customers whose cases have been reported by April 24th of this year, as well as the details of the ongoing investigation. I am Tsubota, President of Sony Life. First, I would like to apologize for the inconvenience and concern caused to our customers, particularly those who have been involved, as well as to all our valued customers and stakeholders who have placed their trust in us due to inappropriate financial conduct by our exclusive agencies, Premier Agency, and by current and former sales employees. On April 24th, we announced that we had received reports from approximately 30 customers, and in response, would be conducting a review of approximately 2.8 million customers to verify their policy status and check for any suspicious financial irregularities. We published the progress of this review yesterday. I would like to explain it here. Please allow me to continue the presentation while seated. First, we would like to explain the verification of the reports received. As of April 24th, we had received reports from 31 customers, 22 of which involved our sales staff, including former employees. While there was no financial misconduct in insurance business operations confirmed during our investigation, such as fraud, we confirmed, based on reports from four customers, instances of inappropriate financial conduct, such as soliciting investments or borrowing money from customers. In addition, we confirmed that sales staff had introduced customers to investment products and their providers that were not authorized under our internal rules and were not presented to customers as products or services that sales staff are permitted to offer. Since the financial misconduct incident in 2017, Sony Life has continuously worked to enhance our compliance and risk management systems. Given this context, we are deeply ashamed that such incidents have occurred. While seeking the opinions of external experts such as legal counsel, we will respond sincerely to the customers who were involved in our employees' inappropriate financial conduct, review our practices, and strengthen measures to prevent recurrence. One of the measures Sony Life has implemented to address this is the verification process for customers we launched last month. By contacting approximately 2.8 million customers handled by Premier Agency and our sales staff, we aim to identify any inappropriate incidents, verify the facts, analyze the causes, and develop measures to prevent recurrence, thereby further strengthening our compliance and risk management framework. We expect to complete this customer verification process by the end of November. As we have already identified instances of inappropriate financial conduct unrelated to insurance business operations, we have decided to strengthen the measures we have been implementing in recent years to prevent closed-door interactions between customers and sales staff. Even after the current customer verification process is completed, we aim to establish a system whereby head office continues to contact customers directly on a regular basis, with the aim of ensuring our customers' peace of mind. For details on the matters discussed today, please refer to yesterday's news release. We plan to announce the progress of our customers' verification efforts and other updates around mid-September. Thank you very much, Tsubota. Our business is built on the trust of our customers. In order to live up to and maintain the trust of our customers, shareholders, and all the stakeholders, we will continue to address these issues with the utmost seriousness. Next, CFO Hayakawa will explain our initiatives in the financial domain. Hayakawa, please proceed. I am Hayakawa, CFO of SFGI. I will explain Sony FG's financial initiatives. In recent years, the interest rate environment is changing significantly, making financial management more important than ever for our group, which is centered on the life insurance business. Even in this environment, we are advancing the financial management of the entire group in order to balance ensuring financial soundness and shareholder returns. Currently, the most important financial challenge is maintaining and improving ESR levels in a rising interest rate environment. To address this challenge, SFGI, the holding company, has been leading the implementation of capital policies and financial measures across the entire group. First, I will explain our efforts to date. This slide shows the trends and sensitivity of the group consolidated ESR. Please look at the left side of the slide. The group consolidated ESR at the end of fiscal year 2025 was 177%, a decrease of 12 points from the end of the previous fiscal year. Although there was a 36-point negative impact on ESR due to rising interest rates, the effects of various financial measures and securing new contracts allowed us to control it within the target range of 165%-215%. The right side shows the interest rate sensitivity, which has decreased slightly from the previous fiscal year due to the effects of financial measures. This is a review of measures taken to date. Amidst rising interest rates, we have strived to maintain and improve ESR by implementing various measures, including bond sales and the use of derivatives. In fiscal year 2025, we flexibly implemented additional measures in response to interest rate trends, resulting in a 23-point improvement in ESR. I will discuss our approach to maintaining and improving ESR levels. We aim to keep ESR within an appropriate range, even when interest rates fluctuate significantly. ESR is an index with capital as the numerator and risk amount as the denominator. The large fluctuations in capital, which is the numerator, is a challenge, and we are implementing measures to reduce capital sensitivity and improve capital level. On the right side of the slide, we show the interest rate sensitivity matching ratio, an index indicating the volatility of capital and capital sensitivity in value terms. In addition to over-hedging, Sony Life is unable to hedge against long-term insurance liabilities cash flows due to the impact of whole life insurance policies sold in the past. Therefore, in an environment with large interest rate fluctuations like the current one, our structure is susceptible to the effects of convexity. Consequently, both sensitivity indicators worsened with rising interest rates, but thanks to the effects of various financial measures, the figures as of the end of fiscal year 2025 were almost flat or improved slightly compared to the end of the previous fiscal year. Regarding capital levels, in addition to capital accumulation through new contract acquisitions, we executed a subordinated financing of JPY 100 billion in December of last year, increasing our capital by approximately JPY 260 billion during the full fiscal year 2025. Next, I will explain our future measures to address financial challenges. Going forward, we will continue to prioritize maintaining our ESR level within an appropriate range, even during interest rate fluctuations as we advance our financial management. As shown on the right side of the slide, we plan to implement financial measures totaling approximately JPY 700 billion over the two years, current fiscal year and fiscal year 2027, mainly through bond sales and the use of derivatives. By raising our ESR level by more than 20 points through additional subordinated financing and new contract acquisitions, we aim to maintain our ESR at an appropriate level, even under further interest rate increases. The left side of the slide shows our consolidated ESR level and countermeasures. Our company has set a target level for consolidated ESR between 165% and 215%, and an alarm point of 125%, at which we will consider reviewing shareholder returns. The lower limit of the target level, 165%, is set considering the time required for the effects of measures to materialize, in addition to considering and implementing measures necessary to avoid exceeding the alarm point while absorbing fluctuations in capital and risk levels due to market fluctuations to a certain extent. Currently, interest rates have risen, and consolidated ESR is approaching the lower limit of our target level. Even if the ESR temporarily falls below 165%, we will not take immediate large-scale action. Instead, we will carefully assess market trends and factors influencing ESR fluctuations before taking appropriate measures. This is an illustrative image showing the relationship between Japan's ultra-long-term interest rates and group consolidated ESR level. The vertical axis represents ESR, and the horizontal axis represents interest rate levels. Currently, we're in an over-hedged situation, resulting in a downward slope curve where rising interest rates lead to a decrease in ESR. In fiscal year 2025, the measures reduced sensitivity, easing the slope of the curve while raising the ESR level. In addition, through the implementation of the measures described earlier for fiscal year 2027, we aim to further reduce sensitivity and raise the level, maintaining the ESR within an appropriate range. As of the end of March 2026, it is estimated that if the compound yield on 40-year Japanese government bonds reaches 6%, the consolidated ESR will hit the alarm point of 125%. However, by completing these measures, we aim to raise this interest rate level to around 7%. Furthermore, regarding the target level for the group consolidated ESR, we aim to maintain the lower limit of 165%, even if the 40-year interest rate rises to around 5%. Next, we will explain our group capital policy. Since our listing, we have pursued our capital policy with SFGI, our holding company at its core. In fiscal year 2025, in addition to steadily advancing shareholder returns and cash management within the group, SFGI issued subordinated bonds for the first time in our group's history and used the funds raised to provide a subordinated loan to Sony Life. We will continue to pursue the optimal capital policy for the group. As we indicated at the recent earnings briefing, our policy regarding shareholder returns is to prioritize dividends and aim for stable dividend increases. We plan to pay a dividend of JPY 8.0 per share annually in fiscal year 2026, representing a 5% annualized growth rate in dividends per share compared to the previous fiscal year. Regarding share repurchase, we will carefully consider future actions, taking into account the current rise in interest rates and their impact on ESR. In addition to the fact that the impact of our shares supply and demand after listing, which was the main purpose of the repurchase, has stabilized to some extent. Finally, I would like to explain our shareholder structure. From the time of listing, when we inherited the shareholder structure of Sony Group Corporation, until the end of March 2026, we believe that the proportion of overseas institutional investors' holdings has decreased, while the proportion of the individual shareholders has increased, indicating that a certain degree of shift in the shareholder structure has progressed. Going forward, we will continue to prioritize dialogue with the capital markets and aim to improve corporate value in order to meet the expectations of our shareholders and investors. This fiscal year is an important year for formulating the next Mid-range Plan, which will begin in fiscal year 2027. During the next Mid-range Plan period, our most important theme will be for Sony Life, our core business, to return to a profit growth trajectory, and we aim to improve the mid to long-term corporate value of the entire group. We are currently in a historically high interest rate environment, making it challenging to manage the business. We will steadily advance our business operations and the financial measures that support them while incorporating the opinions of our stakeholders, including shareholders and investors. That concludes my explanation. We'd like to move to Q and A time. We'd like to take questions from as many people as possible, so we would like to limit the questions to one per person at one time. Those of you who are participating online, please use the raise hand function on the screen. If your name is called from the selection screen, please unmute yourself and then you can speak. If English is used for a question, there will be a translation into Japanese, and then the presenter or speakers will answer in Japanese. If you'd like to ask questions from the Q and A button in Zoom, please jot in your name and company name in the chat box. During the Q and A time, we also have Takayuki Suzuki, President and Representative Director of Sony Assurance Inc., and Keiji Minami, the President and Representative Director of Sony Bank Inc., will also join us to answer questions. Now, we'd like to take questions from those who are in the venue in person. If you have any questions, please raise your hands and please identify yourself and your affiliation first before you ask questions. In the middle block, person in the front row, please. Muraki from SMBC Nikko Securities. One question, simple question. In the next Mid-Range Plan, at what time you can turn into offensive strategy? On page 27, you spent quite a lot of time talking about the financial soundness resolution for the next two years, the interest rate and surrender. If they don't go up more than we expected, ESR will go up to 200% and the volatility will decline. At what timing you can turn into more proactive investments or have more room for shareholder return? Thank you very much for your question. As for the next Mid-Range Plan, because of financial matters, I'd like to ask Hayakawa to answer that question. Thank you for your question, Mr. Muraki. Toward the end of my presentation, as I said, in the next Mid-Range Plan, the Sony Life, the core, will go back to the profitable trajectory. That will be the most important. As a CFO, during the next Mid-Range Plan period, we would like to get this back onto the profitable trajectory, and that's what we need to do. The compliance matters and financial measures that I talked about, as Endo said, will be the foundation in a sense. The financial measures that I mentioned, if we implement them, this level of bond sales will give us some ideas to change to the future growth phase. During the next mid-range period, we have to get back to that phase. That would be important. You talked about profitability. As Endo said, for corporate customers, CSM mix has been changed and profit growth speed has now been changed in our current portfolio. As we said in the last earnings call, in the insurance accounting assumption, the surrender rate was lower during the pandemic, and it takes time, until 2027, to get back to the normal situation. By FY 2027, the financial measures and also profit pressures will have to be addressed. That in the second year of Mid-Range Plan, we are hoping to get back to the growth track. You are talking about the insurance business, which is a long-term business. Also, IFRS, that we are adopting. If the expense is shorter, then there will be a recognition. CSM amortization, the realization of the profit takes time. After two years of financial measures, rather than taking measures towards growth after that, but rather we have to start, we are now making progress in future growth discussions as a group already. As we present next Mid-Range Plan, of course, including investment for our strategy growth we would like to put together the Mid-Range Plan to turn into the growth phase. That's as far as we can say now. As Hayakawa said, from 2027 fiscal year, Mid-Range Plan will be started. As for 2026 and 2027, as I said, so the financial measures in the near term will be prioritized. From the 2027 fiscal year, which is the starting year of the Mid-Range Plan, we will take those measures near term, but at the same time, we will sow the seeds for the growth for the future. We will continue the financial measures in 2027. In the middle of the next Mid-Range Plan, we would like to see some tangible results. That's what we are aiming for. Moving on to the next question, the person in the second row to the left. Thank you very much. I am Sato of JPMorgan Securities. I have one question related to the development of the Mid-Range Plan. The profit has underperformed from the time a Mid-Range Plan was developed. What was the gap of the profit and also the background recognition on page 34? You presented the forecast for the current year. You have a new business value for the life insurance and the combined ratio for Sony Assurance and for Sony Bank, the balance of the housing loans and the number of accounts. Those are underperforming. Of course, there are external factors affecting that heavily, but please explain your assessment. Listening to your reply to Muraki-san's question, the president in the past talked about inorganic investments, including M&A, and said that it's going to be included in the next Mid-Range Plan. What would be the timing of that, given the current financial situation? Am I correct to understand that it's not going to be delayed? Thank you very much. The first part of Sato-san's question, the profit comparison from the time Mid-Range Plan was established, Hayakawa will reply. Inorganic M&A investment, I will reply. Page 34. Thank you for referring to page 34. From my position, I will answer based on what is visible for Sony Life. As you pointed out, the new business value based on IFRS compared to the assumption, in those days, the rates have risen, the new business value have dropped. That is the situation. Partially due to past policies, there is an impact on accounting due to the increase of the surrender. Also new business, annualized premium is shown. The SOVANI launched in 2022. Variable annuity have grown in the initial three years after the launch. Right now, the growth of this have normalized FY 2024 and FY 2025's new policy AP wise. That is the reason for the decline. From operational perspective, the corporate business we have captured is growing. That is clear. In last year's actual, the corporate results are growing, and that is factored into the current year's plan for Life Insurance. We will tackle the interest rate and financial challenges, but the corporate business will drive the growth of the business. We are working on those elements for Sony Assurance and Sony Bank. Especially for non-life insurance business, Suzuki is here today. Under a direct market, we are gaining top share and cost is rising, but we are able to pass through the cost and achieving top and bottom line growth. The momentum is very good, and we will continue. From operational perspective, the growth is achieved as well. For Sony Bank as well, the interest rate is rising, so from collection of low interest rate, deposit-wise, there are issues. Including foreign currency deposits, we have unique value proposition, which is contributing to the top line. We are too focused on acquiring a growing top line. Inorganic investment, including M&A. First of all, our core competence needs to be expanded. For that purpose, the domestic business needs to be strengthened, and M&A strategy will be for that purpose. For example, SME strategy strengthening or agency strengthening, and also wealth management. In this domain, we are to expand some kind of business. Those would be the core strategy in our M&A and inorganic strategy. In the next Mid-Range Plan, overseas M&A was raised as the topic of question in the past, and we have been discussing about this during the past two to three years. Can we build our organization to be able to cope with the inorganic strategy overseas? We have considered, but we are now thinking of starting from investment. We have Sony Financial Ventures, venture capital. In the past, it was limited partnership, but now it is changed to general partnership, GP. More than before, the investees' reality will be monitored thoroughly. In addition to just choosing the portfolio companies, the venture companies, can they collaborate with our main business? We have the visibility now. Using such capability, in addition to domestic market, for overseas market, we will start from investment. We are to build network and relationship and do research on the market condition. During the Mid-Range Plan period, we would like to build the foundation for overseas M&A, and we would like to realize certain scale of investment. Two years ago, three years ago, we talked about the scenario of the Mid-Range Plan period, and including finances, we are not behind. Next question. We would like to go to the next question. From the screen, the person in the front row, please. Watanabe from Daiwa Securities. Slide 30, dividend payout ratio, scope and level, 40%-50% range, which was too broad. That was a challenge, and it was postponed. Are you going to tune this up? Also, as for the absolute amount, in terms of dividend, I think this is a bit inferior to other life insurers. Is there any condition that you can raise this up? As for shareholder return policy, Hayakawa will answer the question. Thank you for the question. As you said, the net income, adjusted net income payout ratio 46%. We are not representing this externally, the dividends. In order to show the dividend level, we have represented this way, and we are looking at DPS to do communication after listing. Going forward, basically, the dividend growth rate is something that we would like to focus on in our communication. In terms of criteria, so adjusted net income, 45% or 50% is our policy. We are keeping eye on that while increasing DPS. That's what we are aiming for. Compared to other life insurers, where the future DPS will be presented in more granularity, that's what we would like to decline from. We would like to focus on dividend and keep increasing the dividend in a stable manner. As we said in the financial measures, the consolidated ESR alarm point, by taking financial measures, we like to first keep the distance from that level and our level as much as possible. In the capital allocation in the Mid-Range, we are saying that shareholder return will be given most priority. This is a policy that we're going to continue. Obviously, in the mid to long term profit growth, there is a capability to acquire new businesses or new policies. By translating this into bottom line and profit, and build up the profit so that we can allocate this to the shareholder return, it may take time, but that's what we are steadily aiming to do. The DPS forecast, if you are to create that, so are you going to apply 45% payout ratio or 5% growth for this fiscal year? Which one is given more priority? Well, externally as corporation, we have not yet reached that stage. That's going to be discussed in the Mid-Range Plan. Of course, as we talk about this from DPS growth, then the latter will be the one that we'll take. The consolidated adjusted net income growth will be also presented, and then dividend growth will be presented in more detail as well. Thank you. Next question. We would like to take questions from online participants. BofA Securities, Tsujino San, please. Thank you for the opportunity. I have one question. ESR issues, I understand that the measures are making progress. My concern is IFRS PL loss based on loss components and the increase of the surrender, and the explanations tend to change. The reason for the increased surrender is not because of the rising interest rate during two years up until 2024. That was due to the change in the product strategy and negative interest rate days when the whole life products sold during that time is now changed. After that, surrender is increasing again. From 2000 to 2010, the whole life was sold, and it was alternative to the tuition insurance. The way the premiums were collected were as if the product was like a school tuition insurance. It was collected in 10 to 15 years. In the current interest rate environment, surrender is rising. There are two points. The whole life products past surrender rate is low, but for the products sold as an alternative to the school tuition insurance, the surrender rate is high. The product strategy in the field and the accounting ERM communication being taken, is there any improvements being made in the communication? In the past, the factors that caused surrender was that sales staff was very excellent. Because of that churning took place, and there's a surrender. The value was created on one hand, but on the other, that may be lost again. That is a concern. As the company, how do you intend to control? If you say there is room for improvement, are you going to think about that? Thank you very much. The question is related to loss component being expanding and the major factor for that. We have been saying that surrender is increasing. The reason for the increase of the loss component may be changing, may not be consistent. The loss component increase, the reason for that is a surrender, and how the company understands the reality of that. That is the question. Hayakawa will answer to that question. Thank you for your question. First, looking back at last fiscal year, in the beginning of the year, we announced the forecast. After that, more than 1% increase of the long-term rate, ultra long-term rate happened. We updated the forecast twice. Also, we explained about the onerous contracts and loss components. Now I may have given the impression that new negative factors have emerged. The accuracy of our forecast needs to be improved. As CFO, I take this message very seriously. Currently, including next fiscal year, our adjusted net income is pushed down. There's CSM amortization through new business acquisition, and there's also loss components and also negative impact from the interest rates. The surrender rate, we use past five years average, and FY 2020 and 2021's surrender rate is replaced with the current surrender rate, and the surrender assumption is changing, so the average is rising. In the past 20 years, we acquired capital intensive savings type of product, and those are turning onerous and contributing to the loss. The surrender rate will start to normalize from FY 2028, and through that, the past loss element impact can be suppressed going forward. As you have pointed out, the product team, whether we are communicating sufficiently in those days, including the times when interest rates were low, long duration insurance products were sold. Depending on customers' life stage, we support customers long-term. Depending on the life stage of the customers, there's replacement happening, and that leads to surrender. When you look at the actual business, last year, the overall surrender rate was 5.7%, and FY 2024 was 6%, so actually it is declining. While the policies are replaced from low spread policies to new policies, we design products by profitability in mind, and the portfolio replacement of CSM itself is a positive element. CSM amortization takes time, so the effect to materialize will also take time. The profitability of the product, we are aware. We keep in mind the profitability more than before, and we conduct a three-in-one management. Let me add some more on the surrender. Tsujino-san, as you have pointed out, from FY 2022 to FY 2023, rapid yen depreciation happened, and due to rate revision and other factors, we experienced increase of the surrender. Currently, the surrender rate itself is declining for both foreign currency and yen-based insurance. Current surrender rate, as was explained, after a certain period have passed, the savings type product, the whole life type or former variable annuity insurance, those surrender rates are rising. These contracts were to cater to the savings needs. When the rates rise and life stage changes, the customer's needs are changing, and as a result, the surrender and switching is rising. Fiduciary duty from that perspective, the customer's lifestyle stage changes and response to the rate increase, we should not be excessively suppressing such switching. It is quite natural that customers will react to the changing needs. The surrender rate increase of the savings type of product, we factor in that certain surrender rate increase will continue. We also utilize AI to conduct the analysis of the surrender. At the right timing, we are strengthening the proposal and follow-up by Life Planners. MVA is introduced, and we are proceeding with the design to suppress the surrender when rates are rising. This completes my explanation. Thank you very much. Risk management from that perspective, how to handle the process of surrender. You're also going to consider those elements. We fully understand the feedback we received in the past and incorporate them. Thank you very much. Let us move to the next question from the venue. On the right-hand side from the screen, the third row, please. Sakamaki from Mizuho Securities. I'd like to ask about Life Planner specialist, sales specialist model. I'd like to ask for your thoughts. The external environment may have caused some fatigue in the system. That's the impression, because there are financial instruments other than insurance that are being sold, and there's some alleged misconduct, and the Life Planner model full commission is now causing some concern. In a sustainable manner, in order to operate this Life Planner model, how do you think about doing this? Also from the agent sales, if you are to expand your sales, your positioning may change. Is that the case? Thank you very much for your question. Life Planner model. Our current philosophy on the approach on Life Planner model. Tsubota will answer that question. Earlier, as I explained, as for the alleged improper, inappropriate financial conduct and prevention of recurrence, while we are investigating the status and also timing and service is being reviewed, and we would like to also make decisions on changing of compensation system on a as needed basis. As for the Life Planner model as a whole, you have asked this question. For this Life Planner model, C=C, the contribution based compensation. Your efforts are correlated to your results, and equity and fairness will be assured, and you can also manage your activities on your own. Under the name of a joint responsibility with the company, entrepreneurship will be also assured. This is what Life Planner system is about. Needs-based sales is required for life insurance products sales, and high-performing and autonomous talent should be retained in the company. In that regard, this has been quite important system in our understanding. Based on that, as you said, if you look at the current status, there are various issues and rooms for improvements that are being identified, that's a fact. Including these points, we are now in the process of reviewing this system. One discussion point is the following. In order to further improve the environment, based on the status of the Life Planners, more stable compensation type will be provided and variation will be expanded. There are some multiple career plans that are being provided to Life Planners, and we are considering the possibility of that. Once we have this total picture in place, then we would like to share that with you. Thank you. Moving on to the next question. The person in the second row. I'm Sasaki of Nomura Securities. Page 54 is the page I would like to ask a question about. Sony Bank in the U.S. is trying to acquire a banking license. When do you expect it can acquire the license, and the stablecoin issuance timing and schedule? Can you share that as well? If possible, what would be the use case you assume? The issuance amount, what would be the amount? I believe this will be usable through PlayStation, and when will that happen? Thank you for the question. Sony Bank is scheduled to issue stablecoin, and the question was on this topic. Minami-san, please. Thank you for the question. In October of last year, the trust company focusing on the issuance and distribution of stablecoin, the request is sent on the second, and it's under review. According to the plan, we would like to start issuing in FY 2027. The use case would be entertainment, individual-to-individual transaction, and within the group, the financial transactions, and cross-border remittance transactions. Those would be the business scenes, and we are doing case studies. We have simulated on the scale, but we need to further scrutinize before we announce externally. You talked about PlayStation application. Of course, we are proposing that this will be used in PlayStation. Sony Group's basic stance is to adopt the best product around the world. We are making efforts so that our service will be chosen. Thank you. This time, together with stablecoin issuance, as Sony Bank's wallet and account linkage is also planned. With this as a trigger, Sony Bank's application or Sony Life's Life Planner Web, those exist separately, but if you connect those interfaces, then you can create Sony Financial Group's unity and synergy. Thank you for pointing that out. In addition to Sony stablecoin, in May of last year, we shifted to cloud type core banking system. If we use that, then within the group, we can use this, and a BaaS-like system service can be offered, and we would like to utilize in service development. For Sony Life customers, we are preparing for a dedicated product. Partially, we will launch in FY 2026, and from FY 2027, we would like to introduce the services in stages. Within the growth strategy of the current Mid-Range Plan, we have a plan to build a digital platform. Exactly what you have pointed out. Each entity within the group is to be connected so that customers can access the services of Sony Financial Group through this digital platform, and Sony Group's entertainment services can be enjoyed. The basic format would be the digital platform plan. We have histories in each company's applications and platforms. It's not easy to connect them all at once immediately, so it may take some time. We have to be customer-oriented in developing our plan. I'm a Sony Life user. My wife is a Sony Assurance user, and my daughter is a PlayStation user. If you can create a family wallet, then that would be good. I'd like to take questions from online participants. Tokai Tokyo Intelligence Laboratory, Osama-san, please. Thank you very much. This financial matter, whether in the portfolio or maybe derived from the portfolio that has been centered solely on bonds, in my view. Taking actions from there may be difficult, but this year, maybe you are expecting the interest rate to go up further, then you can just divest bonds, and realize losses, and put it in the cash. Why don't you do that? Or you just stop investing in bonds and you just make investments in equity only. Isn't that the kind of concept that you may seek? Well, thank you very much. Bond sales as a part of the financial measures, you can just realize losses and post losses at one time. Also, what about our approach about asset management? That's what you're asking about. Hayakawa will answer that question. Thank you. You said in one go, but I said that it will spend about two years. We have ultra-long bonds, and so there could be an impact on the market, and we have to be cautious looking at that in selling bonds. It's not just CSM that we mentioned, accounting profits and also the funds for shareholder return, the funds that are available for distribution or dividend. That's what we are balancing out on. I'd like to ask for your understanding on that. Also asset management. We are having long-term liability in ALM with JGB. ALM concept is not going to be changed significantly. That's not what we are assuming. It's not just market risk. It's not market risk, but we are looking at the insurance risk as we operate business. On the other hand, interest rate is going up. In this context, to what extent we can take risk is what we are looking at while seeking more profits in asset management and shifting approach slightly. As we said in the last time IR meeting, we can use outsourcing to do alternative investment starting from JPY 50 billion, and we have already started on this initiative. In that sense, we said three-in-one Management, and asset management is one of those elements, and so we are improving our capabilities steadily so that, as a result, we can gain profits from asset management. That's what we're shifting our approach to. Thank you. May I add something? As for financial improvements, Hayakawa already explained about that. On my personal note, for interest rate changes, we have to keep discipline while responding to the situation in agile manner. In the near term, because of the interest rate increase as part of the financial improvements, bond has been sold ahead of the time, partially. Looking at the market situation, financial soundness and corporate value stable improvement will be balanced out by combining multiple measures. That's what we are trying to do. Thank you. Next question will be the last question we can take. Any questions, please raise your hand. The person in the middle row. Thank you for the opportunity. I'm Sasaki of Nomura Securities. Just one question. This time, the impact of misconduct, is there the possibility for customers and Life Planners to resign or move away? I would like to ask about the management perspective. First, let me explain the current situation. As of now, the insurance product sales and surrender trend, we do not see any major changes in the trend. In our sales activities, the new policy acquisition is not impacted in recruiting activities. The current recruiting impact is very limited, although there are some impact, and we are seeing some weakness. On the other hand, the recruiting activities by office managers have seen some weakness, and it's possible that the number of recruitment in the second half may be impacted. For the full year, it will depend on the progress of the investigation, including the points that were just made. We cannot deny that there will be some impact. Currently, the management is taking the lead in checking the facts and taking accountability, including Life Planners to all employees. We have broadcasted a video message to ensure that they deepen their understanding. We will continue to make efforts for the deepening of the understanding. With this, we would like to finish the Q and A session. With this, we would like to close the IR briefing session of SFGI. Thank you very much for your participation.