入金 不要 ボーナス カジノ1 Results Conference Call Summary of Q&A

Described below is the summary of Q&A session with institutional investors and securities analysts at the 入金 不要 ボーナス カジノ1 results conference call held on May 20, 2022.

Q1According to pages 4 and 6, the top-line revenue is projected to grow by about 4% and the bottom-line result by 5% on a normalized basis excluding the impact of foreign exchange rates in the fiscal year 2022. How do you evaluate the growth of your company’s earnings per share (EPS) in comparison to global peers?

A1

We consider that our EPS growth is at the world’入金 不要 ボーナス カジノop level both on a single year basis and in terms of long-term compound annual growth rate (CAGR). We consider that there are two factors behind this. First, as we faced various challenges especially in the last few years, such as COVID-19 and the escalation of natural catastrophes, our Group companies have intensified their focus on profitability and further strengthened their risk screening abilities and underwriting abilities. Second, they have also enhanced their abilitie入金 不要 ボーナス カジノo promote Group synergy through such actions as voluntary discussions on synergy amongst themselves. As we live in an uncertain and unclear time, we want to continue proactively taking actions.

Q2According to your projections of international operations’ profits in the fiscal year 2022 on page 50, net income for accounting purposes will grow by 23.4 billion yen and business unit profit by 10.6 billion yen. Why are the figures different? Also, can you please tell us about the exchange rate you used to make these projections and the Russia-Ukraine situation?

A2

The main reasons for their difference are that business unit profit includes non-consolidated subsidiaries and that different accounting standards are applied to net income for accounting purposes and business unit profit in the international life insurance business. The foreign exchange rate was as of March 31, 2022. As for Russia and Ukraine, we consider we are appropriately controlling risks because, in principle, we do not cover war risks and our exposure is small. Their impact on our business results i入金 不要 ボーナス カジノherefore limited. Given our strong results in the January-March quarter, we consider that we could easily make up for the impact the Russian-Ukrainian situation has on our results.

Q3Delphi Financial Group, Inc. (DFG) had strong investment performance in the fiscal year 2021 partly due to the larger-than-expected capital gains. You are projecting a further profit increase in the fiscal year 2022. Why?

A3

We expect that DFG will be able to continue securing a high level of income gains thanks to an increase in assets under management (AUM) on the back of the expansion of business both in underwriting and asset management, in addition to the current interest rate hikes. DFG has secured high returns relative to the index, while controlling volatility. This is largely attributable to the presence of their experienced asset management team, and their tolerance to liquidity risk as they invest in debts whose characteristics are long-term and predictable. We want DFG to continue producing stable earnings, under thorough risk management and monitoring by 入金 不要 ボーナス カジノne Holdings (HD).

Q4I fully understand that your company can achieve high growth simply through organic growth. However, can I again confirm your M&A strategy and appetite?

A4

The purpose of M&As for us i入金 不要 ボーナス カジノo diversify risks. M&As in themselves are not our purpose. We therefore target companie入金 不要 ボーナス カジノhat will help us diversify risks from the viewpoints of geographical locations, insurance lines, and so on. With this purpose a入金 不要 ボーナス カジノhe premise, we set strict acquisition standards and conduct M&As after the rigorous selection of target入金 不要 ボーナス カジノhat not only meet our acquisition principles including their cultural fit but also offer a high return. Due to the COVID-19 pandemic, it is currently difficult to confirm the targets’ cultural fit with our Group. However, we also consider that patience and timing are important for good-quality, large-scale M&As, and are constantly examining our long and short lists.
Meanwhile, with respect to bolt-on type M&As conducted by our Group companies, we will continue proactively capturing good opportunities a入金 不要 ボーナス カジノhey are familiar with each other’s businesses.

Q5On your capital policy, you have said that you would flexibly conduct share buybacks setting the target amount at 100 billion yen. What i入金 不要 ボーナス カジノhe meaning of this figure? If you fix this amount, I do not think it will be flexible. Also, your business results for the fiscal year 2021 were very strong and you are predicting another strong performance in the fiscal year 2022. Despite this situation, why did you maintain the same target amount of share buybacks for the fiscal year 2022 as in the previous year?

A5

We consider that our basic approach to shareholder returns i入金 不要 ボーナス カジノo increase dividends consistently with our profit growth. As you pointed out, our profit as a flow is certainly increasing; meanwhile, we consider that share buybacks function as capital stock adjustments. We therefore determine their amount, timing, and so on, comprehensively considering the economic environment, M&As in the pipeline, and other factors, based on our latest economic solvency ratio (ESR). In this context, our latest ESR was 128 percent before share buybacks. This was approximately at the same level as it was a year ago, on March 31, 2021. Given the current uncertainties including the uncertain market environment, we presently plan to spend 100 billion yen in share buybacks. We will make decisions on whether to change this amount based on how the conditions change from now on.

Q6In your fiscal year 2022 projections on page 28, you expect profit increases in 入金 不要 ボーナス カジノne Nichido Fire (TMNF) and the International business, both based on the strength of their business. Can I confirm if there is any risk?

A6

When we prepare our projections, we thoroughly confirm the latest situation of our operations in Japan which close accounts at the end of March. Our international operations close accounts at the end of December. We therefore prepare our plans for them before the end of December and then again review various conditions at the beginning of the year. The figures we have disclosed were prepared through these processes. In this sense, we believe that the likelihood of achieving these projections is high at present. We want to achieve these targets under strong execution abilities. For this purpose, we consider it important that we enhance the inside of our business. More specifically, we will further strengthen the power of integrated Group management which we have been improving, and continue working on areas such as culture, human resource networks, technology, and enterprise risk management (ERM), which we have been focusing on, as we consider them to remain important in the future.

Q7On adjusted return on equity (ROE), your fiscal year 2022 projection exceeds 12 percent, which you originally set a入金 不要 ボーナス カジノhe medium- to long-term target. What is your view on raising the target?

A7

Various management strategies we have implemented such as risk diversification are currently starting to have the intended impact on our business results. In a sense, we consider that we are in a different stage from a few years ago. We originally set 12 percent as our target with the hope of stably achieving a double-digit ROE. We hope to further raise our ROE and will continue properly discussing and examining the target that goes beyond this figure.

Q8The speed at which your company’s profit grows appear入金 不要 ボーナス カジノo be slightly slowing. Please tell us what you have done and what you are going to do for profit growth.

A8

We consider that insurance business has a cyclical nature. With this in mind, we have steadily expanded our business areas based on our risk diversification strategy with a focus on profitability. The current mid-term business plan also seek入金 不要 ボーナス カジノo achieve sustained growth. Beyond this period, we hope to further strengthen the earnings power of the existing insurance business and continue achieving a growth that is comparable to our global peers by refining integrated Group management as our unique strength and further promoting risk diversification in terms of lines of insurance, geographical areas, and timelines, while contributing to the resolution of social issues in accordance with the purpose of our company. In addition to the organic growth, we will securely capture good quality opportunities for large-scale M&As and bolt-on M&A入金 不要 ボーナス カジノo connect them to risk diversification and growth. We are also steadily working on new business concepts such as disaster prevention and mitigation, healthcare, renewable energy, and cyberspace. We want to appropriately fulfill our roles as an insurance company, and at the same time, steadfastly raise the power of the inside of our business.

Q8（2）It appear入金 不要 ボーナス カジノhat the number of forward-looking investments you have lately made is small. What i入金 不要 ボーナス カジノhe reason?

A8（2）

For 入金 不要 ボーナス カジノne, M&As are not purpose but means. We do not acquire businesses without reason when there is no company that meets our strict acquisition standards. We did not execute any large-scale M&As in the fiscal year 2021 based on these acquisition standards and market valuations, among other factors.

Q9What has changed in relation to your capital policy from the previous fiscal year? Please explain the change made, including its background and your approach to it.

A9

In the first place, we do not intentionally save our capital. The question is not whether we adjust our capital level; we always intend to do so. Based on this approach, we introduced a formula of “100 billion yen – X (business investments)” to calculate the value of share buybacks we conduct. However, some people said this scheme was not easy to understand. We therefore stopped using this method and changed to a simpler approach. We have currently set 100 billion yen as our target based on a comprehensive consideration of the economic environment, M&As in the pipeline, and other factors, as well as our ESR. The share buyback amount of 50 billion yen, which we have recently approved, was also determined based on various condition入金 不要 ボーナス カジノhat are currently at play. Going forward, we will take actions flexibly and with discipline, while monitoring the situation.

Q10Please tell us about your response to economic inflation and social inflation.

A10

We will, in principle, closely monitor conditions of the market of each base, make decisions through such monitoring, and take actions based on the decisions we have made. We consider that lines such as property and auto will be especially susceptible to economic inflation. Given that the portfolio of our international business centers on specialty insurance, the impact of economic inflation on this business may be relatively small. As for social inflation, we understand that some of our peers are cautiously watching the current resumption of lawsuits. In 入金 不要 ボーナス カジノne, Philadelphia Insurance Companies (PHLY) posted an additional provision for reserves a few years ago ahead of others. I think we also have taken actions quickly on the review and enhancement of underwriting and pricing. We will continue taking actions flexibly and proactively.

Q11入金 不要 ボーナス カジノne Kiln (TMK) has achieved an impressive recovery in their profit level. What is its background? Is there any entity that you are currently watching closely?

A11

TMK seem入金 不要 ボーナス カジノo have finally moved to a path of profit growth thank入金 不要 ボーナス カジノo our effort入金 不要 ボーナス カジノo enhance their leadership and reform their corporate culture, which we have worked on together with Christopher Williams, Co-Head of International Business, and thank入金 不要 ボーナス カジノo enhancement to their underwriting capabilities. As for other entities, it is hard to name specific entities. We currently conduct businesses in more than 40 countries and regions. While there are companie入金 不要 ボーナス カジノhat are facing challenges, we consider that we have a structure to comprehend, support, and respond to the challenges faced by each entity in a timely manner using the combined wisdom of the Group, as we have been enhancing collaboration between HD and other entities and HD’s governance over them each year.

These information materials are prepared based on the currently available information for us and described subject to our predictions and forecasts carried out at the time of preparation.
It must be noted that what is described therein does not guarantee our future business performance and carries certain risk of misjudgment or uncertainty.
Accordingly, you are kindly requested to bear in mind that there may be a possibility of sizable divergence between the actual business performance in the future and that of our predictions or forecasts described therein.