T&D (8795) Investor update summary

Review of previous long-term vision

• Achieved group adjusted profit target of ¥130bn and adjusted ROE of 8% ahead of schedule; ROEV (5-year average) exceeded 7.5%.

• Value of new business fell short of target, but in-force business expanded and positive spread increased due to robust sales and higher interest rates.

• Capital efficiency improved through significant reductions in investment risk, including large purchases of ultra-long-term bonds and reductions in equity and foreign bond holdings, though equity risk reduction target was not fully met.

• Shareholder returns increased, with cash dividends rising from JPY 46 to JPY 130, ¥459bn total returns, and ¥250bn in share buybacks over four years; dividends increased for 11 consecutive years.

• Strategic investments in closed book business diversified earnings, contributing ¥93bn in cumulative adjusted profit and expanding the business portfolio.

New long-term vision: Try & Discover 2030

• The new vision focuses on sustainable growth, leveraging group strengths, and addressing demographic and market challenges.

• Three basic principles: strengthen core life insurance, pursue growth through new value creation, and enhance group resilience.

• Group-wide DX strategy and AI adoption are central to improving productivity, profitability, and management integration.

• Revised management vision emphasizes unified value creation and transition to a new growth stage.

• Organizational restructuring and reskilling to support AI-driven transformation and workforce mobility.

Financial targets and capital management

• Adjusted profit target for FY2031 raised to JPY 230 billion, with adjusted ROE target set at 15%, exceeding the 8%-10% cost of equity.

• Five-year targets include annual EPS growth of 10%+ and annual ROEV of at least 8%.

• Cumulative adjusted profits of over JPY 900 billion expected over five years, supporting both growth investments and shareholder returns.

• 60% of adjusted profit over five years to be returned as cash dividends, with flexible share buybacks based on capital levels and investment execution.

• TSR rose to approx. +230% (3.3x), PBR improved from 0.54x to 1.08x, and P/EV multiple increased from 0.26x to 0.40x.