T&D (8795) Q4 2024 earnings summary

Executive summary

• Ordinary profit recovered to ¥159.8bn from a ¥74.1bn loss; profit attributable to owners of parent was ¥98.8bn versus a ¥132.1bn loss.

• Group adjusted profit rose 14.7% to ¥103.5bn; comprehensive income improved to ¥493.4bn from a ¥335.9bn loss.

Financial highlights

• Ordinary revenues were ¥3,208.0bn, down 0.2%; insurance premium income rose 13.6% to ¥2,474.6bn and investment income rose 28.2% to ¥642.1bn.

• Ordinary expenses fell 7.3% to ¥3,048.2bn, including insurance claims and other payments down 15.0% to ¥2,165.1bn; investment expenses rose 59.7% to ¥305.2bn.

• Domestic life core profit increased 35.2% to ¥125.8bn, supported by favorable sales of mainstay products and lower COVID-19-related claims.

• Operating cash flow was ¥262.8bn versus an outflow of ¥307.6bn; investing cash flow was an outflow of ¥180.2bn and ending cash was ¥1,172.0bn.

Outlook and guidance

• FY2025 ordinary profit is forecast at ¥180.0bn and parent-attributable profit at ¥104.0bn; Group adjusted profit is forecast at ¥117.0bn and EPS at ¥196.23.

• FY2025 ordinary revenues are forecast at ¥2,560.0bn, down 20.2%; premium income is expected to decline as the launch-driven sales effect of yen-denominated single-premium products ends.

• Profit growth expectations reflect improved positive spread from lower currency-hedging costs, including through a reduced balance of foreign-currency assets.

• Forecasts rely on current information and assumptions; actual results may differ substantially.