T&D (8795) Investor Update summary

Progress under the current long-term vision

• Achieved group adjusted profit target of JPY 130 billion and adjusted ROE of 8% ahead of schedule, with capital efficiency as a key focus and ROEV averaging 7.9%, exceeding the 7.5% target.

• Reduced investment risk by JPY 130 billion and increased Group MCEV by JPY 890 billion over four years since April 2021.

• Total shareholder returns reached JPY 395.5 billion, with a payout ratio of 106% against cumulative group adjusted profit.

• PBR improved from 0.54 to 1.25, and P/EV ratio rose from 0.26x to about 0.40x, reflecting enhanced capital efficiency.

• Non-financial KPIs improved, including customer satisfaction, employee engagement, and CO2 emissions reduction.

Financial and shareholder returns

• Announced largest-ever share buyback of JPY 100 billion and new dividend payout policy of 60%.

• Cash dividends increased for 11 consecutive years, with per-share dividends planned at JPY 124 for FY2025.

• TSR has progressed steadily and outperformed sector peers over 1, 3, and 5-year periods.

Future profit outlook and growth drivers

• Group adjusted profit is projected to exceed JPY 200 billion by FY March 2031, driven by positive spread expansion, closed-book business growth, and increased insurance bottom line.

• Positive spread expected to improve through portfolio enhancements and rising interest rates.

• Asset management improvements and higher interest rates expected to fully cover assumed interest by FY2030.

• Insurance bottom line to rise with growth in policies in force, while reliance on securities sales gains will decrease.

• Yen interest assets are expected to cover over 100% of assumed interest by March 2031, with FX hedging costs declining.