T&D (8795) Investor Day 2024 summary

Business strategy and sales model

• Shifted to a hybrid sales model combining face-to-face, internet, commercials, and digital channels, expanding reach and efficiency in response to changing customer needs.

• Focus on household market, unique third sector products, and evolving sales methods to expand customer touchpoints and drive growth.

• Diversified sales channels, including infomercials and Sma-Hoken, led to increased new policy acquisition and market expansion beyond traditional areas.

• Advertisement cost per contract has declined, improving cost efficiency in customer acquisition.

• Focused on living benefit products for customers in their 30s–50s and relaxed-underwriting products for younger demographics.

Sales force and productivity

• Number of in-house sales reps increased by 15% over five years, reaching 9,319 at the end of last year.

• Enhanced productivity and expanded market coverage through increased hiring, improved training, and digital tools.

• Productivity focus is on less experienced sales reps, aiming to boost persistency and overall sales capability.

• Hybrid sales style and digital tools are being leveraged to improve both sales and administrative productivity.

• Next-generation AI-enabled sales devices to be introduced from August to standardize and enhance sales quality and efficiency.

Financial performance and guidance

• Net income reached a record ¥38.9 billion in FY2023, up 45.3% year on year, driven by higher core profit and extraordinary gains.

• Protection-type new policies and in-force A&P reached record highs, supporting profit and underwriting results.

• FY2024 forecast: ordinary revenue JPY 930 billion, ordinary profit JPY 78 billion, net income JPY 43 billion, ANP of new policies at ¥21.0 billion, and policies in force at ¥166.0 billion.

• MCEV rose to ¥1,171.8 billion (108.1% of previous year), supported by favorable market conditions and new policy acquisitions.

• Targeting JPY 25 billion insurance bottom line for FY2025, maintaining this despite recent downward revisions due to surrenders and claims normalization post-COVID.