T&D (8795) Investor update summary

Financial performance and guidance

• Achieved group adjusted profit target of JPY 130 billion one year ahead of schedule, with FY2026 profit forecast at JPY 140 billion and FY2031 target at JPY 200 billion or more.

• Adjusted ROE expected to reach 9% in FY2025 and approximately 10% in FY2026, exceeding cost of equity.

• Profit growth driven by steady expansion in domestic life insurance and diversification through closed book business investments.

Capital policy and shareholder returns

• Announced largest-ever share buyback of JPY 100 billion for FY2025, with total shareholder return including dividends at JPY 141.6 billion.

• Cash dividend payout ratio to increase to 60% of five-year average group adjusted profit from FY2026, with forecast dividend per share rising from JPY 80 to JPY 120.

• Total payout ratio expected to be 109% over four years, with disciplined capital allocation balancing dividends, buybacks, and growth investments.

• Commitment to not cut dividends in principle and to enhance predictability of cash dividends, with additional returns considered if ESR exceeds 225%.

Investment strategy and Viridium acquisition

• Investing JPY 120 billion in Viridium, a German life insurance holding company, to diversify earnings and support profit growth.

• Viridium investment expected to lower ESR by about 10 percentage points, with post-transaction ESR projected at approximately 225%.

• Viridium's profit contribution to begin from FY2026; goodwill impact under review and may affect adjusted profit.

• No specific new investment domains decided yet; future investments to be considered under next long-term vision.