T&D (8795) Investor update summary

Review of previous group 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 policies and positive spread increased due to robust sales and higher interest rates.

• Reduced domestic interest rate risks and rebalanced investment portfolio, though equity risk reduction target was not met due to rising stock prices.

• Strengthened shareholder returns with ¥459bn total returns and ¥198bn allocated to growth investments; 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.

Performance and capital management

• 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.

• Asset management risk and equity beta declined, with cost of equity recognized at 8-10% due to higher interest rates.

• Capital allocation focused on stable profits from life insurance, growth investments, and steady dividend growth, targeting a 60% payout ratio.

New group long-term vision: Try & Discover 2030

• Vision centers on sustainable growth, value creation, and responding to demographic and workforce challenges.

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

• FY2030 targets: group adjusted profit ¥230bn, adjusted ROE 15%, EPS growth rate ≥10% CAGR, and ROEV ≥8% CAGR.

• New investment budget of ¥500bn to increase profit share from non-domestic life insurance businesses to over 20% by FY2030.