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IR D a y -Taiyo Life’s Sales Strategy - T&D Holdings, Inc. (Code number: 8795 TSE Prime) July 7, 2025
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1． Taiyo Life’s Business Model 2． Promotion of Hybrid-Style Sales 3． Improvement of Productivity and Increase in Number of In-house Sales Representatives 4． Trend of Sales Results 5． Promoting Operational Innovation and Reform of Branch Office Management 6． Improving Productivity (in both quality and quantity) through the Utilization of Sales Device “T-AI-Face” 7． Enhancing Information Strategy 8． Expansion of Market 9. Enhancing Profitability 10. Trends in Profit Indicators 11. Full-Year Forecast P . 2 P . 3 P . 4 P . 5 P . 6 P . 7 P . 8 P . 9 P . 10 P . 11 P . 12 1 Table of Contents
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• Our conventional sales activities focused on sales in the household market by in-house sales representatives visiting in pairs. However, in response to the drastic changes in the social environment including the impact of COVID-19 pandemic, we made a shift in our business model and deployed a hybrid-style sales that combines face-to-face and non-face-to-face sales activities. • We will continue to increase revenues by offering highly appealing living benefit products to the so-called "responsibility generation“ customers, relaxed-underwriting type products that are accessible to younger customers, and other products that contribute to expanding the market. Business Model Product Development which Preempts the Times - Remote work becoming the norm - Increasing number of stay- at-home people - Growing needs for insurance Market expansion through diversification of channels Changes in environment Market (Household market) Promoting hybrid-style sales Changes in environment Sales method (Integration of face-to-face and digital) - Increase in elderly population - Increase in stay-at-home hours of the responsibility generation Providing industry-leading products Changes in environment Product (Income protection focused on third-sector) From 2021 From 2018 From 2008 From 2023 From 2024 1．Taiyo Life’s Business Model 2 From 2016 - Promotion through DX - Spread of online application
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19 70 125 216 198 246 5 15 29 60 59 63 28% 21% 23% 28% 30% 26% -30% -20% -10% 0% 10% 20% 30% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2019 2020 2021 2022 2023 2024 情報連携数 成約数 成約率 • Promotion of hybrid-style sales using direct information with TV and online advertisements has resulted in steady growth in the number of sharing and contracts. • From October 2024, in addition to the conventional direct information, the number of information sharing has increased with sales support (information distribution) by branch office life counselors (LCs). Going forward, we will continue further promotion of hybrid-style sales by enhancing sales strategy using information. Beginning and Development of Hybrid-Style Sales Trend of Number of Information Sharing, Contracts, and Contract Ratio *The contract ratio excludes online contracts. 2．Promotion of Hybrid-Style Sales 3 Information sharing September 2016 Started trial of sales method using infomercial Non-face-to-face solicitation October 2019 Created Sma-Hoken April 2020 Commenced Branch Collaboration for Sma- Hoken January 2021 Introduced remote application April 2022 Established Direct Sales Dept. to centralize direct information including infomercials and Sma- Hoken, etc. August 2024 Introduced online solicitation and digital proposals October 2024 Full-scale sales support by LCs No. of information sharing No. of contracts Contract ratio(thousand cases) Increase in the number of sharing and contracts with full-scale sales support by LCs from October 2024
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3,210 3,593 3,620 3,990 4,157 4,393 1,900 1,929 2,019 2,192 2,370 2,408 2,961 2,951 2,895 2,834 2,792 2,749 8,071 8,473 8,534 9,016 9,319 9,550 2019 2020 2021 2022 2023 2024 Less than 3 years 3-9 years 10 years and over (Persons） • Productivity has been improving especially for in-house sales representatives with less than 3 years of experience through the promotion of Hybrid-style sales using direct information. • Improving productivity per person led to a positive cycle of training and hiring, resulting in a steady increase in the number of in-house sales representatives. ANP of Protection-type New policies per Person Number of In-house Sales Rrepresentatives Peer Comparison of 3rd-sector ANP of new policies per Person 2019 2024 Change (2024-2019) ANP of protection-type new policies per person (total of in-house sales representatives) 1.86 1.97 +0.11 Of which 10 years and over 2.91 2.85 (0.06) Of which 3-9 years 1.50 1.74 +0.24 Of which less than 3 years 1.13 1.53 +0.40 3. Improvement of Productivity and Increase in Number of In-house Sales Representatives 4 1.82 0.87 1.06 0.91 1.20 0.65 1.04 Taiyo A Co. B Co. C Co. D Co. E Co. F Co. *Third-sector ANP/Number of in-house sales representatives at end of FY (FY2024) (Million yen) (Million yen)
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3.2% 3.0% 3.6% 4.0% 4.5% 4.4% 1.1% 0.8% 1.2% 2.1% 4.2% 4.8% 0.0% 2019 2020 2021 2022 2023 2024 Surrender/lapse ratio (in-house sales reps) Surrender/lapse ratio (agents) 15.7 17.2 19.2 21.8 20.6 21.9 153.2 155.4 157.9 161.4 162.1 167.7 2019 2020 2021 2022 2023 2024 ANP of protection-type new policies ANP of protection-type policies in force （Billions of yen） • ANP of protection-type new policies was ¥21.9 billion in FY2024, increased approximately 40% from FY2019, before the pandemic. ANP of protection-type policies in force as a source of revenue maintained the increasing trend. • On the other hand, surrender and lapse rates increased due to the lapse of policies purchased during the COVID-19 period in the in-house sales representative channel, and surrender of products sold at a lower assumed interest rate in the bancassurance channel. However, results have improved year-on-year for FY2024 in the in-house sales representative channel. ANP of Protection-type Policies 4. Trend of Sales Results *ANP basis 5 Surrender and Lapse Rates Number of New Policies 266 273 296 333 305 339 2019 2020 2021 2022 2023 2024 (thousand policies)
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• We pursued operational innovation and reduced conventional operations, shifting the generated human capital to sales support and customer service functions. The general clerical role at the branch office, primarily responsible for administrative duties, was transitioned to a life counselor (LC) position, with a focus on sales support and service. • In FY2025, we are advancing reforms in branch office management by expanding the managerial scope of experienced branch office managers with strong management skills. This initiative aims to build an organization capable of block-based sales promotion. Following the branch office operational innovation and a personnel system revision, we are advancing reforms in branch office management to enhance productivity. Block Manager Branch Office General branch office A General branch office B Sales branch office A Sales branch office B Sales branch office C ≪ Image of branch office organization after review ≫ ５. Promoting Operational Innovation and Reform of Branch Office Management Promoting Operational Innovation Personnel System Revision, etc. Reform of Branch Office Management Block-based performance management/sales Planning and operation of measures/support visits, etc. Maximum centralization on in-house sales representative exam and customer service administration Branch office prioritizing sales promotion, LC focuses on sales support • Establish a management structure for each organizational level. • By centralizing administrative functions at comprehensive branch offices, we set up sales-specialized branches and promote sales activities on a block-by-block basis. After review • Standardized branch office structure and functions across the entire company. • We are aware of challenges such as inefficiencies in parts of our internal control. Current By promoting DX and reviewing branch operations, we have reduced traditional clerical work and shifted toward sales support and service operations Sales support Customer service Clerical work Sales support Customer service We have reduced traditional clerical work by approximately 70% By increasing the time devoted to sales support and service operations, we have transitioned to tasks that enhance overall productivity Clerical wok ≪Traditional≫ ≪New≫ With the introduction of new work styles and the resulting shift in roles required at branch offices, we have revised the job definitions for general staff Life counselorGeneral staff 【New work】 ・ Sales support, sales training ・ Customer service, counseling ・ Planning, negotiating etc. 【Traditional work】 ・ Clerical work ・ Customer service task etc. 6
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Increased number of proposals Expand customer touchpoints • The sales device “T-AI-Face” was introduced in August 2024, resulting in the expansion of non-face-to-face sales such as online solicitation and remote application, and enabling more advanced sales support with AI, etc. In FY2025, we aim to further utilize T-AI-Face to expand the market, strengthen such sales capabilities, and enhance sales efficiency. Enhance sales efficiency Expansion of Market Enhance sales capabilities Utilize non-face-to-face solicitation for new proposal method that does not depend on time and place Specific Initiatives Consultation that matches the customer’s needs Increase activity volume and improve efficiency Digital proposal • Easy-to-understand video proposals with animation and narration for a customized plan for each customer ６. Improving Productivity (in both quality and quantity) through the Utilization of Sales Device “T-AI-Face” Purpose Online solicitation • Face-to-face quality proposals via remote tools with video conferencing and screen sharing AI model plan • AI analyzes customer attributes and presents a model plan matching their needs. AI model presentation • Screen display that matches customer needs and supplementary explanation with audio guidance Sophisticated performance/activity management • Customized education/development for each in-house sales representative by visualizing necessary information for education quickly and simply AI customer list/map search function • AI selects priority customer visits • Increase visits with automated neighborhood search function GoalsComprehensive plan ＝ Improve premium unit price × × Improve performance by improving productivity of in-house sales representatives 7
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Realize same consulting services as face-to-face solicitation Seamless response from telephone inquiry to proposal ７. Enhancing Information Strategy <Branch’s neighboring area customers> Face-to-face solicitation Same-day appointment/ proposal Same-day information sharing <Remote customers> Non-face-to-face solicitation Consulting sales Information sharing Information Collection Direct information ＼ Digital proposal, remote application ／ Online ads Centralized response (telephone) In-house sales representative • Regarding the hybrid-style sales, which are proposal activities by sales representatives utilizing customer information, a workflow has been built to immediately share customer information with neighboring branch offices, allowingour in-house sales representative to make immediate proposals. • In addition to direct information, collaboration by LCs is being carried out using the information accumulated by the branch office. In addition, we are currently developing a scheme to share customer enrollment information from the group insurance market with our sales representatives. Lead information from LC Information from group insurance market Information of: • Retirement • Automatic termination of group insurance • Group pension enrollment information • Information shared in the past • Partially entered data via the web • Existing policyholder information Call Center Communicator Television ads 8
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８. Expansion of Market • At Taiyo Life, based on a business model involving home visits and the efficiency of sales activities, branch offices have been established in areas with a population of over 200,000. • In recent years, we have introduced a hybrid-style sales approach that integrates both face-to-face and non-face-to-face sales activities, utilizing direct information. • We are able to provide consulting sales remotely, comparable to in-person interactions through online solicitation and digital proposal function using T-AI-Face, aiming to expand the market by enhancing proposal methods. • Face-to-face consulting via sales visit • Distribution of brochures to households (approval base) • Hybrid-style sales using direct information and remote application • Online solicitation using T-AI-Face and digital proposals Face-to-face sales The traditional market centered around branch offices Remotely Expand the market by enhancing proposal methods regardless of face-to-face or non-face-to-face sales channels Face-to-face and non-face-to-face sales Non-face-to-face sales Population: approx. 60.5 million Population: approx. 9.5 million Population: approx. 56.0 million 9
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Timing of revisions Measures April 2019 • Abolished insurance amount discount system / revised insurance premiums discount system November 2019 • Revised hospitalization lump-sum insurance September 2021 • Revised hospitalization and surgery insurances, etc. November 2021 • Revised relaxed-underwriting product May 2023 • Released simplified cancer diagnosis insurance, etc. May 2024 • Released disability benefit insurance December 2024 • Revised third-sector products May 2025 • Revised first-sector products/insurance premiums discount system 0.1 0.4 0.5 0.8 1.8 2.2 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Effect of past measures Effect of measures from FY2025 • Improve profitability by enhancing product margins by increasing the business expense margin, strengthening the PDCA cycle for claim payments, etc., advancing underwriting capabilities, renewing product offerings in bancassurance channels, and implementing various measures in the in-house sales representative channel. • Enhance profitability by improving the quality of in-force policies through these initiatives and increasing the volume through sales promotion. ≪ Measures to increase business expense margin ≫ ≪ Expense margin improvement effect (image) ≫ Enhance claims payment management system Management Product development Claims payment assessment Policy assessment Enhance claims payment monitoring and analysis Review/revise “claims assessment criteria” Review/revise product /premium rates Review/revise “Policy underwriting standard” ９. Enhancing Profitability Improve Product Margin ← Actual Forecast → Advancement of Underwriting Capabilities Improve Surrender and Lapse Ratio (Billions of yen) 16.7 14.9 17.3 20.1 24.9 25.3 2.7% 2.5% 2.9% 3.5% 4.4% 4.5% 2019 2020 2021 2022 2023 2024 2025 surrender/lapse ANP surrender/lapse ratio ← Actual Forecast → (Billions of yen) 10
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15.8 10.2 26.8 38.9 51.8 3.9% 2.2% (17.1%) 9.1% 11.7% 13.1% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 2019 2020 2021 2022 2023 2024 Adjusted profit Adjusted ROE • Adjusted profit and adjusted ROE, which are Group KPIs, are increasing due to the implementation of various measures including the improvement of positive spread due to ceded reinsurance for in-force policy block. • Core profit decreased in FY2022 due to the increase of claim payments for COVID-19, but reached ¥54.2 billion in FY2024 including the increase in a positive spread, etc., showing a steady upward trend. Adjusted Profit and Adjusted ROE (74.1) Core Profit, etc. Impact of ceded reinsurance 10. Trends in Profit Indicators 19.5 35.8 46.3 21.2 40.7 52.4 [0.6] [4.2] [30.9] [0.3] 12.6 34.1 42.0 19.5 38.3 25.5 23.7 16.4 10.1 12.4 14.0 -100 0 100 200 300 400 500 600 2019 2020 2021 2022 2023 2024 Core profit [Impact of COVID-19] positive spread Insurance bottom line (6.0) *Insurance bottom line excludes special factors such as COVID-19. In FY2023, a reversal of provisions for retirement benefits amounting to ¥9.1 billion was recorded and reflected as a deduction in the insurance bottom line. (Billions of yen) (Billions of yen) 11
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FY2024 (result) FY2025(forecast) Change Ordinary revenues 1,716.3 1,100.0 (35.9%) Income from insurance premiums 805.5 870.0 +8.0％ Ordinary profit 79.4 100.0 +25.8％ Core profit 52.4 65.0 +24.0％ Positive spread 38.3 47.0 +22.6％ Capital gains/losses 29.3 36.0 +22.5％ Net income 51.8 50.0 (3.6%) Adjusted profit 51.8 50.0 (3.6%) FY2024 (result) FY2025(forecast) Change ANP of protection-type new policies 21.9 21.0 (4.4%) ANP of protection-type policies in force 167.7 171.0 +1.9% Value of new business 27.2 21.0 (22.9%) 11. Full-Year Forecast (Billions of yen) (Billions of yen) Profit Indicators Sales Performance Indicators 12
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I R D a y -Daido Life’s Sales Strategy - T&D Holdings, Inc. (Code number: 8795 TSE Prime) July 7, 2025
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1 Ⅰ. Sales Performance ① Recap of FY2024 Ｐ. 2 ② Current Performance Trends Ｐ. ５ Ⅱ. Latest Topics ① Impact of Recent Change in Environment Ｐ. ６ ② Market Environment Ｐ. ７ ③ Competitive Situation Ｐ. ８ ④ Growth of Existing Channels Ｐ. ９ ⑤ Steady Capture of Inheritance and Business Succession Needs Ｐ. １０ ⑥ Disability Insurance (J -Type) Development Ｐ. １１ ⑦ Development of Mid -Sized Business Segment Through FI Channels Ｐ. １２ ⑧ Creating Touchpoints with New Customers through “ Dodai ?” Ｐ. １３ ⑨Developing the Employee Market Through Contributions to Human Capital Management Ｐ. １４ Ⅲ. Full -Year Forecast Ｐ. 1５ Table of Contents
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2 14 15 15 17 17 16 17 18 367 363 0 50 100 150 200 250 300 350 400 0 5 10 15 20 25 2019 2022 2023 2024 Number of new corporate clients Number of lost corporate clients Number of corporate clients Ⅰ. Sales Performance ①Recap of FY2024（New Policy Amount・Corporate Clients） • The new policy amount has reached the 5 trillion yen range. • The number of corporate clients remained nearly flat due to the continued high level of client attrition, our careful consulting- based sales approach—designed to meet a wide range of coverage needs—led to an increase in proposals combining death coverage and disability benefit. In addition, our efforts to attract new corporate clients progressed steadily, resulting in a recovery to levels exceeding those seen before the COVID-19 pandemic. Trend of new policy amounts EV of new business ¥130.0 billion (Increase year on year 105%) *FY2024 4.0 4.2 4.7 5.1 5.3 2021 2022 2023 2024 2025 (Plan) Trend of new and lost corporate clients (Thousand companies) 2019 (¥ trillion)
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3 46.6 46.7 46.6 46.6 46.9 47.4 2020 2021 2022 2023 2024 2025 • Due to strong performance in the new policy amount and a decline in surrender and lapse amounts compared to the previous year, the amount of policies in force recorded a net increase for the first time in three years. Since the fourth quarter of FY 2024, surrender and lapse amounts have remained below the previous year's level. • Compared to corporate clients with single coverage, corporate clients with total set of policies* have a lower risk of complete policy termination (total policy termination rate). The promotion of disability benefit also contributes to building a more robust customer base. * Companies that are prepared for both death and disability risks for the same insured individual. Trend of policy amount in force Trend of surrender and lapse amount 2.8 2.9 3.2 3.6 3.6 6.06% 7.92% 7.83% 0.0 0% 1.00% 2.00% 3.00% 4.00% 5. 00% 6.00% 7.0 0% 8.00% 9.00% 10.00% 0.0 2020 2021 2022 2023 2024 Surrender and lapse amount 90% Year-on-Year (Cumulative total for April–May 2025) 8.01% 8.13% 8.16% 7.02% 1Q 2Q 3Q 4Q Quarterly Trends for Fiscal Year 2024 3.3% corporate clients with total set of policies* corporate clients with single coverage 6.0% [Reference] total policy termination rate (plan) ＊Companies that are prepared for both death and disability risks for the same insured individual. Ⅰ. Sales Performance ①Recap of FY2024（Policy Amount in Force ・ Surrender and Lapse Amount） (¥ trillion) (¥ trillion)
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4 Ⅰ. Sales Performance ①Recap of FY2024（Economic Value-Based Growth） • By responding to our customers' diverse protection needs, our profitability based on economic value (EV of new policy) has steadily increased. • With the rising share of disability benefit within the policy amount in force, our economic value-based corporate value (MCEV) has continued to expand, growing 2.5 times over the past decade. Trend of EV of new business 2020 2021 2022 2023 2024 2025 Economic Value-based growth ¥89.3 billion New business margin 13.0％ ¥130.0 billion New business margin 16.1％ Yield of 10-year JGB (as of end of each FY) 0.1% 0.2% 0.4% 0.8% 1.5% 6 % 2015 ¥1.1 trillion 2024 ¥2.7 trillion 26 % ¥39.2 trillion Policy amount in force [of which, disability benefit] [share of disability benefit] ¥46.9 trillion ¥2.4 trillion ¥12.0 trillion ＭＣＥＶ ¥705.7 billion ［Reference］ ANP of in-force policies (accounting-based growth) ¥812.7 billion (plan)
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5 Cumulative total for April– May 2024 Cumulative total for April– May 2025 Cumulative total for April– May 2024 Cumulative total for April– May 2025 Ⅰ. Sales Performance ②Current Performance Trends • While concerns had been raised regarding the potential impact of U.S. tariff measures on domestic SMEs, the new policy amount for April–May 2025 demonstrated year-on-year growth. • The surrender and lapse amount has also fallen below the previous year's level, and at this point, the impact on overall sales performance remains limited. Current level of new policy amount Current level of surrender and lapse amount Year-on-Year 103％ Year-on-Year 90％
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6 Ⅱ. Latest Topics ① Impact of Recent Change in Environment • There have been no significant changes in status of competitive landscape, etc., but uncertainties are expected to continue for SME business sentiment due to increasing instability in global affairs, etc. Customers Company Know-how in promoting protection-type products that are resilient to changes in business sentiments Continued business sentiment uncertainties due to increasing instability in global affairs, etc. No major change in competitors’ strategies Strength of the Company in solid long-term relationships with SME-related organizations, sales know-how for protection-type products, and a strong products/services lineup for SMEs remain unchanged. In addition to structural issues for SMEs such as business succession and human capital management, actions required on latest economic trends Carrier mix ratio mostly unchanged. Despite new corporate products launched by competitors, our sales increased for exclusive and independent agents. P . 7 P . 8 P . 9 -14 Grounds Grounds Six topics Competitors
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7 Ⅱ. Latest Topics ② Market Environment • According to a survey targeting SME owners (May 2025 Daido Life Survey), 64% of companies expressed concern about the potential future impact. These concerns include “deteriorating earnings” and “a decrease in margin due to increased cost of goods,” and indicate their struggle to find specific actions. • US-Japan tariffs negotiations are ongoing, leaving uncertainties including the extension of the temporary suspension period. Impact of US economic policy No impact 33％ Positive Expectations 3％ Source: SME owners survey “Daido Life Survey” May 2025 report 43% 31% 25% 10% 8% 1Deteriorating earnings Decrease in margin due to increased cost of goods Decrease in demand for distribution, etc. Decrease in exports Review sales pricing 21% 13% 6% 5% 48% 1Reduce inventory Decrease capital expenditure Suspend 2026 wage increase No feasible countermeasures Cancel 2025 wage increase ▍ Specific impact of US economic policy ▍ Company measures against the impact Concerned 64％ （n=5,025） （n=3,018） （n=3,018）
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8 Ⅱ. Latest Topics ③Competitive Situation • On the channel front, the carrier mix rate remains largely unchanged, and there are no notable changes in the competitive situation. • On the product front, although various companies have launched new products targeting the corporate market, new policy amount has been growing regardless of whether through exclusive or independent agencies. Our company's competitive advantage, stemming from our focus on providing protection-type products, remains unchanged. Trends in the carrier mix rate 2023 2024 Approx. 114 ％ 2024202320222021 largely unchanged Independent insurance agents ▍New policy amount from exclusive agents ▍New policy amount from independent insurance agents 2023 2024 Approx. 106 ％
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9 Ⅱ. Latest Topics ④Growth of Existing Channels • The number of sales representatives has increased, and the new policy amount per person has also risen. The same trend is observed in the tax accountant channel, indicating steady growth in the sales structure of existing channels. • As a market leader in the SMEs market, we strive to deepen market presence.Growth of existing channels (organizational expansion) Sales representative channel Tax accountant channel 3,577 3,628 3,747 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 0 5,000 10,000 15,000 20,000 25,000 2022 2023 2024 New policy amout Number of sales representatives vs. 2022 105％ vs. 2022 108％ 13,987 14,250 14,616 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2022 2023 2024 New policy amount Number of tax accountant agents vs. 2022 104％ vs. 2022 121％¥430 million per person ¥450 million per person
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10 Ⅱ. Latest Topics ⑤Steady Capture of Inheritance and Business Succession Needs • As the aging of business owners continues to drive growing demand for inheritance and business succession needs, we have expanded our team of FPs and inheritance consultants, completing nationwide deployment in fiscal year 2024. We provide attentive consulting services, beginning with our clients’ stock valuation. • In addition to efficiently acquiring new policies, when clients require solutions beyond life insurance for inheritance or business succession matters, we support comprehensive problem-solving by introducing trusted partner firms. This approach also strengthens our relationships with them. New Policy amount per company 3,620 5,146 6,715 2022 2023 2024 cases 21 26 33 2022 2023 2024 2025 SMEs each partner company Trust Real estate Ｍ＆ＡFinancing Successor training Life insurance Company-wide Consultation support 2.3 X Number of FPs & inheritance consultants Number of Company Stock Valuation Consultations Comprehensive Problem-Solving Support (Expansion of Non-Insurance Solutions)
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11 Ⅱ. Latest Topics ⑥ Disability Benefit (J-Type) Development • Repeated updates to the J-Type (critical illness insurance) to secure competitiveness by improving product appeal have led recent launch of two products: Advanced Cancer Coverage J-Type offering reasonable coverage for critical illnesses that directly lead to retirement, and J-wide Rider Plus offering ongoing broad coverage for illnesses that lead to temporary leave from work. • The maximum coverage amount for the Advanced Cancer Coverage J-Type has been increased to 300 million yen to ensure sufficient business continuity funds in the event of a critical illness. 4.1 2010 2012 20192020 2025 J - Type J - Wide Rider J - Type α Advanced Cancer Coverage J - Type J - wide Rider Plus Cancer Stage Limited J - Type Prepare for critical illness risks (cancer, acute myocardial infraction, stroke) for the business owners’ long-term absence or retirement, etc., and secure significant coverage necessary for business operation Cover mild critical illnesses such as carcinoma in situ Provides reasonable coverage for critical illnesses directly linked to retirement and broad and continuous coverage for illnesses linked to temporary leave from work, taking into account changes in the medical environment Focused coverage for advanced cancer that has significant impact on corporate management *Suspended sales of Limited Cancer Stage J-Type from June 2025. Flexible customization of the balance between premiums and surrender value in addition to the insurance amount and coverage period J-Type policy amount in force trillion yen J-Type has grown into our mainstay product, with 204,000 policies in force and policy amount in force of 4.1 trillion. Type *
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12 Trend of new policy amounts Ⅱ. Latest Topics ⑦Development of Mid-Sized Business Segment through FI Channels • Through financial institution channels centered on mega banks, leasing companies, and leading regional banks, we are acquiring and developing connections with a new customer segment—Mid-Sized Companies. • From the perspective of developing new markets and reducing concentration risk, efforts have also been made to engage regional banks and securities companies. As a result, the number of FI agents steadily increased to 79 by the end of fiscal year 2024. • While competition with other companies is intense in the FI channel, our strength lies not only in marketability but also in 'koto-uri'—solution- oriented selling that begins with addressing client needs such as inheritance and business succession planning. Financial Institution agents FI channel 77 ％ Company - wide 30 ％ ▍Core customer base of the FI channel ▍New customer acquisition ratio of the FI channel *Proportion of new corporate clients (Based on new policy amount in FY2024) *Proportion of companies with annual sales over ¥1 Billion (Based on new policy amount in FY2024) FI agents 79agencies Below ¥0.5 bn ¥0.5-¥1.0bn Annual sales Over ¥1.0 bn *Proportion by business type (Based on new policy amount in FY2024). Mega bank Leasing company Regional bank Others 2022 2023 2024 The rise of variable and foreign currency-denominated insurance products has diversified the offerings promoted by agencies YoY 113％ YoY 93％ Vs.2022 112％ FI Tax accountants Sales reps Proportion of Mid - sized Companies 59 ％
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13 Ⅱ. Latest Topics ⑧Creating Touchpoints with New Customers through “Dodai?” • “Dodai?” has grown into one of the largest web-based community for business owners in Japan with 90,000 members. • Membership inflow through organic search and ads other than existing channels are increasing, contributing to creation of touchpoints with new customer segments (industry, generation). • By contributing to solving management challenges and enhancing exchanges among business owners, and creating connection beyond regions and industries, we will continue to work on creating larger social impact such as growth and development of SMEs, regional revitalization, and new business creation. 23% 48%4% 15% 15% 7% 27% 7% 21% 12% Service IT/ transportation Manufacturing Construction Wholesale/retail 20% 4% 27% 19% 25% 34% 19% 25% 8% 18% [By industry] 20s and under 30s 40s 50s 60s 0.2％ Real estate [By age] *As of 2024 4Q Access new customer segment (industries, generations) Grown into one of the largest web-based community for business owners in Japan <Web-based community for business owners in Japan> *Prepared based on company websites, etc. operated by Japanese companies that exclusively target business owners and offer online interaction, etc. (based on our research, including paid services) Number of “Dodai?” membership 2022末 2023末 2024.1Q 2Q 3Q 4Q 営業職員経由 広告・自然検索Through sales rep Ads/web search end-2022 end-2023 90,000 members 38% 14% Dodai？ Ｘ Ｙ Ｚ 25,00090,000 10,000 8,000 Our corporate policyholders “Dodai?” members via ads, etc. Our corporate policyholders “Dodai?” members via ads, etc. (members)
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14 Ⅱ. Latest Topics ⑨Developing the Employee Market through Contributions to Human Capital Management • The number of member companies and users of the KENCO SUPPORT PROGRAM (KSP) has been steadily increasing, contributing to the creation of an employee market triggered by KSP utilization. • In addition to establishing connections with approximately 150,000 employees, we are accumulating health checkup data throughthe registration of results by KSP users. • In addition to contributing to human capital management in SMEs, we are also working to enhance our presence as a 'partner supporting SME growth' in preparation for market entry by competitors offering non-insurance services. Corporate-level health promotion (leading to long-term reduction in insurance claim payments) Creation of a market for employee insurance 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 0 1 2 3 4 5 6 7 8 2017 2018 2019 2020 2021 2022 2023 2024 Companies Users 157 Trends in the Number of Member Companies and Users of KSP 45 Support for “Bright 500” Recognition ➢ Specialists’ support for gaining recognition of certified Health & Productivity Management Outstanding Organizations including Bright 500 enterprises. Hosting of “DAIDO KENCO AWARD” Our original award program that recognizes SMEs with outstanding efforts in health and productivity management and effective utilization of KSP 57 45 2022 2023 2024 Recognized Supported Total 69 companies Supported to recognition 710 196 2022 2023 2024 applied awarded Total 1,630 companies applied Total 394 companies awarded 2017 2018 2019 2020 2021 2022 2023 2024 *Cumulative new policy amount from KSP member companies not enrolled in our insurance Contribution to Human Capital Management (Expansion of Support Menu Utilization) Not enrolled in our insurance (Thousands) (companies) (companies)
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15 Ⅲ. Full-Year Forecast • The profit indicator (core profit) is expected to decline due to increased operating expenses associated with wage hikes, system investments, and other factors. • Sales performance is expected to improve through the expansion of new customers and the deepening of relationships with existing customers, driven by the implementation of our "Total Coverage Proposal" — a combined offering of death and disability coverage, which is one of our core strengths. As a result, both new policy amount and in-force policy amount are projected to increase. *Uncertain factors such as U.S. reciprocal tariffs may cause variability depending on future developments. FY2024 (result) FY2025 (forecast) Change New policy amount 5,145.2 5,390.0 +4.7% Policy amount in force 46,967.5 47,480.0 +1.0% Value of new business 130.0 140.0 +7.6% (Billions of yen) FY2024 (result) FY2025 (forecast) Change Income from insurance Premiums 841.2 870.0 +3.4% Core profit 108.5 94.0 (13.4%) Of the above, positive spread 50.0 52.0 +4.0% Ordinary profit 113.5 120.0 +5.7% Profit income 72.6 68.0 (6.4%) Adjusted profit 72.6 76.0 +4.6% (Billions of yen)Profit indicators Sales performance indicators