Overview of LIFENET INSURANCE COMPANY

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Overview of LIFENET INSURANCE COMPANY September 2018 LIFENET

3 Lifenet is Comprehensible Cost-Competitive Convenient Returning to the original purpose of life insurance mutual support Plugged-in way to reach customers who need insurance products with necessary coverage Copyright LIFENET INSURANCE COMPANY All rights reserved. 2

4 Lifenet Manifesto (Revised in June 2018) Comprehensible, Cost-Competitive, Convenient I. Our Guiding Principles II. Making Life Insurance Accessible Again - Headache-free (1) Creating the life insurance of the future without losing sight of its original premise: an ounce of prevention is worth more than a pound of cure. (2) Listening to what our customers are saying. Recognizing their needs and acting accordingly. Allowing our actions to be borne out of their voices and needs. (3) Delivering the caliber of products and services that we would feel confident recommending to our own friends and families. (4) Being a straight-shooter. Committing to transparency. Communicating openly about our management team, our products, and our employees. (5) Embracing diversity and dialogue to keep us abreast of changing needs and preferences. Delivering peace of mind that we ll be around in 100 years. (6) Acting in good faith means always taking the high road when it comes to compliance and ethics. (1) Helping the customers help themselves. By making our materials easy to understand, customers can determine which coverage is truly the best fit. (2) Turning clauses in the insurance contract into succinct points that your grandmother could grasp. (3) Making all touch points headache-free. Beyond the application process, ensuring the claims and billing processes are also easy to understand. III. Making Life Insurance Accessible Again - Affordable (1) Giving the customer what he/she needs. No more, no less at a fair price. (2) Staying vigilant as to how we can provide our products more costefficiently. (3) Always putting ourselves in our customers shoes in thinking about how to minimize their premiums. IV. Making Life Insurance Accessible Again - Convenient (1) Thinking about our customers convenience from every angle and every touch point along the way. (2) Forming alliances with like-minded partners who can add value above and beyond our products and services to our customers. (3) Providing health and wellness tips beyond the framework of life insurance to create value in our policyholders lives. (4) Creating a precedent for future generations as to what life insurance is (and should be) all about. We wish to be a company that helps our customers embrace life more fully. In order to live out that vision, we continue to challenge ourselves. Copyright LIFENET INSURANCE COMPANY All rights reserved. 3

5 Lifenet at a Glance History October 23, 2006 May 18, 2008 March 15, 2012 May 22, 2015 Key Figures (FYE 2018/3) Annualized Premiums 1 of Policies-in-force: Established Commenced operation Listed on Tokyo Stock Exchange, Mothers Issuance of new shares through third-party allotment to KDDI CORPORATION JPY 11,147mn Number of Policies-in-force: 263,847 Sum assured: JPY 2,059,703mn Premium and Other Income: JPY 10,616mn Total Assets: JPY 35,541mn Net Assets: JPY 13,387mn Embedded Value: JPY 44,440mn Number of Employees: 151 -Sales Representative: 0 Solvency Margin Ratio: 2,455.8 % Stock Information Tokyo Stock Exchange, Mothers market of the high growth and emerging stocks Ticker 7157 Total number of authorized shares 100,000,000 Total number of issued shares 51,145,000 (as of Mar. 31, 2018) Number of Shareholders 7,338 (as of Mar. 31, 2018) Major Shareholders (as of March 31, 2018) KDDI CORPORATION 25.02% Swiss Re Life Capital Ltd 11.11% Seven Financial Service Co., Ltd. 6.35% Asuka DBJ Investment Limited Partnership 5.75% GOVERNMENT OF NORWAY 4.53% MAMORU TANIYA 4.19% Recruit Holdings Co., Ltd. 2.44% ASAHI Net, Inc. 2.15% 1. Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments for Lifenet products are in monthly installments, thus the annualized premium is calculated as multiplying the monthly premium by 12 months. Copyright LIFENET INSURANCE COMPANY All rights reserved. 4

Daisuke Iwase, Co-Founder Director, Chairman Ripplewood Japan and Boston Consulting Group. MBA from Harvard University (Baker Scholar).

6 Management Team (as of June 24, 2018) Management team is comprised of various backgrounds with a wide age range of generation. In terms of enhancing corporate governance, Board of Directors is comprised of ten members including four outside directors. Three of the four Corporate Auditors are outside auditors. Daisuke Iwase, Co-Founder Director, Chairman Ripplewood Japan and Boston Consulting Group. MBA from Harvard University (Baker Scholar). Hitoshi Hatta Executive Managing Director Director of Planning Division, Planning and Coordination Bureau and Director, Supervisory Coordination Division, Supervisory Bureau, Financial Services Agency of Japan Directors Ryosuke Mori Representative President, Director Goldman Sachs Japan Co., Ltd. Head of Corporate Planning Department and General Manager of Corporate Strategy Division at Lifenet Masanori Sakasai Executive Managing Director The Dai-ichi Mutual Life Insurance Company, Director and Executive Officer, Chief Actuary of The Gibraltar Life Insurance Co., Ltd. Outside Directors Masayuki Nishida Director, Executive Vice President Sanyo Securities Co., Ltd., Russell Investments Japan Co., Ltd. and Mercer Japan Ltd. Yasuhiro Koba Director Ministry of Health, Labour and Welfare Head of Legal Department and General Manager of Corporate Administration Division at Lifenet Eiko Shinotsuka Professor Emeritus, Ochanomizu University Masanobu Takatani Former Senior Managing Director, The Norinchukin Bank Yutaka Mizukoshi Senior Advisor, The Boston Consulting Group Tomohiko Katsuki General Manager, Financial and Commerce Division, Life Design Business Sector of KDDI CORPORATION Corporate Auditors Seijiro Isa Former Executive Managing Director of Asahi Mutual Life Insurance Co. Yasuharu Fushimi (outside) Senior Executive Adviser of Tsuneishi Holdings Corporation Kenichi Masuda (outside) Attorney-at-law, Partner, Anderson Mori & Tomotsune Tadasu Kawai (outside) Former Senior Executive Officer of Sony Corporation Copyright LIFENET INSURANCE COMPANY All rights reserved. 5

7 Annualized premium 1 growth Annualized premium of policies-in-force is growing steadily since business commencement in May The number of policies-in-force exceeded 270,000 in June (million yen) Annualized premium November 2012 Policies-in-force 150,000 February 2014 Policies-in-force 200,000 8,077 October 2017 Policies-in-force 250,000 8,793 9,377 10,088 11,147 March 2012 IPO and Listing on the TSE Mothers 6,875 December 2011 Policies-in-force 100,000 December 2010 Policies-in-force 50,000 4,870 May 18, 2008 Commencement of Operation 2,659 1, Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY Annualized premium is the amount of money equivalent to what is to be paid to have the insurance coverage for one year. All payments for Lifenet products are in monthly installments, thus the annualized premium is calculated as multiplying the monthly premium by 12 months. Copyright LIFENET INSURANCE COMPANY All rights reserved. 6

9 Key Characteristics of the Japanese Life Insurance Market There are huge inefficiencies in the Japanese life insurance industry, huge market. On the other hand, Huge changes are occurring in this market as a result of deregulation. Huge market Huge inefficiencies Huge changes World s 2nd largest market with approx. JPY 40 tn annual premiums Consumers bear the burden of high prices amidst a prolonged stagnation Proliferation of web-based financial services Approx. 90% Japanese households insured Lack of comparative information Diversifying consumer preferences for insurance products Approx. JPY 400,000 average annual premiums per Japanese household High turnover of untrained captive agents Industry deregulation aimed at promoting competition Copyright LIFENET INSURANCE COMPANY All rights reserved. 8

10 Huge Market Japan's life insurance market is the world's second largest, worth approximately JPY40 trillion. Roughly 90% of Japanese households have life insurance policies. Japanese Life Insurance Market (annual premiums) (JPY tn) Private insurance¹ Cooperative insurance² Former Japan Post³ 50.0 Ratio of households with policies 4 : 89.2% Average annual premiums per household 4 : JPY 385 thousand Average cover amount per household 4 : JPY 24 million FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1. Private insurance: Life insurance companies that are members of The Life Insurance Association of Japan; income from premiums and other sources. 2. Cooperative insurance: Cooperative insurance companies that are members of the Japan Cooperative Insurance Association; mutual aid premium contributions (total for life insurance and pension fund contributions). 3. Former Japan Post: Insurance premium until September 2007 (Postal Life Insurance); Japan Post Insurance included in data for private insurance from October 2007 following privatization. 4. Data as of FY2015. Source: Lifenet, based on data from Life Insurance Fact Book 2017 (Japanese ver.) by The Life Insurance Association of Japan, Cooperative insurance in Japan FACT BOOK 2017 by Japan Cooperative Insurance Association and a nationwide report on the life insurance industry (2015) by Japan Institute of Life Insurance. Copyright LIFENET INSURANCE COMPANY All rights reserved. 9

11 Huge Inefficiencies The burden on family budgets has not changed because the ratio of average annual premiums per household to household income remains at a set level while a decrease in household income. The main reason for no intension of making insurance contract comes from their financial situation in all generation. Trends of average annual premiums per household 1 and household income (ten thousand yen) Reasons for no intension of making insurance contract 64.6% 57.7% 60.0% 61.9% 58.1% 54.6% 54.4% Not afford to pay premiums 50.9% 50.0% 41.8% Have enough insurance Household income Average annual premiums per household Not feel the necessity Age limit and health condition 29 and under and over 1. Average annual premiums per household of private insurance including Japan Post insurance 2. Calculated from average annual premiums per household and the ratio of average annual premiums per household to household income Source: A nationwide report on the life insurance industry (2015) by the Japan Institute of Life Insurance Copyright LIFENET INSURANCE COMPANY All rights reserved. 10

12 Expense loading Premium Net premium Huge Changes Circumstances surrounding life insurance companies have changed, such as the revision of the Insurance Business Act and the evolving consumer needs in conjunction with the changing social structure. Industry deregulation aimed at promoting competition Revision of Insurance Business Act Both life and general insurance companies can now enter medical insurance through subsidiaries Complete clearance of insurance sales through banks Liberalization of insurance products Liberalization of expense loading rates Changes of consumer needs due to change of household structure change Along with a change of household structure due to increase in working couple households and one-person household, customer needs of insurance products also change Trends in percent distribution of households by structure of household Net premium Calculation based on expected incident rate and expected return rate Comparatively small differences between each life insurance company 1 Approved by the Financial Services Agency Expense loading Calculation based on expected business expense rate Liberalization in principle (Made shift to the expost monitoring system for operating costs) The setting of prices is left to the discretion of (10 thousand household) 1,200 1,114 household with full-time housewife the management of each life insurance company Excluded differences between those with or without policyholders dividends and the cash surrender value Source: Statistics and Information Department, Minister s Secretariat, Minister of Health, Labour and Welfare From Comprehensive Survey of Living Conditions, 2013, Graphical Review of Japanese Household, The Japan Institute for Labour Policy and Training Long-term Labour Statistics Working couple household 1,129 Copyright LIFENET INSURANCE COMPANY All rights reserved % 20% 40% 60% 80% 100% One-person household Household of couple with unmarried children Three-generation family household Household of couple only House hold of a single parent with unmarried children Other household Trends in working couple household and household with full-time housewife 664

13 Huge Market Potential Sales channels for life insurance have been diversified, and a percentage of consumers are purchasing life insurance products via the Internet. We expect to see the trends continue going forward. Trends of Sales Channels and Preferred Sales Channels in the future (%) Online Others Captive agents, Post offices, Banks, Securities brokers High growth potential We believe there is high growth potential in the future because the online life insurers market share still accounts for less than 1%. Online life insurers market share 0.36% Fiscal 2017 Number of new business Sales representatives (life insurers) Preferred sales channel in the future (as of 2015) Industry Total 17,275,988 Sum of AXA Direct and Lifenet 1 61, The sum of the number of new business at each company approaching mainly online channel in FY2017; 22,672 of AXA Direct and 39,175 of Lifenet Source: Data from a nationwide report on the life insurance industry (2015) by the Japan Institute of Life Insurance, financial results for FY2017 at each company and Annual statistics in FY2017 by The Life Insurance Association of Japan Copyright LIFENET INSURANCE COMPANY All rights reserved. 12

15 Business Model with Manifesto High integrity Disclose information thoroughly Communicate with customers proactively Comprehensiveness Provide very simple and pure protection products Develop easy-to-understand and intuitive-to-use website Cost-Competitiveness Offer competitively priced products by Internet-based low cost operation Convenience Offer our products and services 24 hours a day, seven days a week Provide convenient services with utilizing Smartphone Offer Medical insurance benefit claim to be made online, 24 hours a day Copyright LIFENET INSURANCE COMPANY All rights reserved. 14

Expense loading Premium Net premium Management with High Level of Business Integrity Lifenet discloses information on our management, products and company as a whole on our website to be transparent.

16 Expense loading Premium Net premium Management with High Level of Business Integrity Lifenet discloses information on our management, products and company as a whole on our website to be transparent. Transparent disclosure Disclosure of insurance premiums Disclosure of agent commission rates Disclosure of monthly operating figures Disclosure of breakdown of insurance premium(example) Term life Kazoku In the case of 30 years old, male, insurance term 10 years, insurance coverage amount 30 million yen Net premium Expense loading Premium (Net premium+expense loading) 2,000yen (74%) 704yen (26%) 2,704yen (100%) (As of August 31, 2018) Customer communication Regular policyholder meetings Introduction of employees and company through employee s blog since commencement of business Diverse employee backgrounds (half of employees came from outside the life insurance industry) Interactive communication with policyholders Copyright LIFENET INSURANCE COMPANY All rights reserved. 15

Simple Products We offer simple and competitively priced pure protection products. Internet-based low cost operations enable us to be extremely price competitive.

Term Life Kazoku Long-term Disability Hataraku-Hito 2 for death due to illness, accident or disaster Whole-life Medical New Jibun for Women For More extensive coverage for women For being unable to

17 Simple Products We offer simple and competitively priced pure protection products. Internet-based low cost operations enable us to be extremely price competitive. We launched a renewal term life insurance product in April Term Life Kazoku Long-term Disability Hataraku-Hito 2 for death due to illness, accident or disaster Whole-life Medical New Jibun for Women For More extensive coverage for women For being unable to work due to disease or injuries Whole-life Medical New Jibun For hospitalization, surgery and advanced medical care Cancer Double Yell For double support of treatment and income decreases 1. Our products have no maturity insurance, no dividends and no cash surrender value on our products. 2. As of September 2018, we also offer medical care insurance Jibun Plus through online direct sales channel and au Life Insurance with Refunds for au users through KDDI. Copyright LIFENET INSURANCE COMPANY All rights reserved. 16

simple and easy-to-understand for customers.

All customers need to do for getting quotes

products Total monthly premium Calculated on

18 Develop Easy-to-understand and Intuitive-to-use Website Our website is simple and easy-to-understand for customers. Select products Select birthday Select sex All customers need to do for getting quotes is select birthday, sex and insurance products Total monthly premium Calculated on August 31, 2018 Copyright LIFENET INSURANCE COMPANY All rights reserved. 17

Competitively Priced Products Internet-based low cost operations enable us to be price competitive.

yen Average monthly premium 10,713 yen Expense loading Office costs Personnel costs Utility costs Other costs Net premiums Personnel costs Utility costs Other costs Net

etc. Net premiums Used for insurance payouts and other payments Assumed mortality rate based on the Standard Mortality Table 2018 developed by The Institute of

19 Competitively Priced Products Internet-based low cost operations enable us to be price competitive. Savings of insurance premium 1 after switched to Lifenet Structure of premium (Life insurance) Average annual saving around 78,180 yen Average monthly premium 17,228 yen Average monthly premium 10,713 yen Expense loading Office costs Personnel costs Utility costs Other costs Net premiums Personnel costs Utility costs Other costs Net premiums Expense loading Commissions added by insurance companies Sales team personnel costs, employee personnel costs, office costs, utility costs, IT system costs, etc. Net premiums Used for insurance payouts and other payments Assumed mortality rate based on the Standard Mortality Table 2018 developed by The Institute of Actuaries of Japan Before After Face to face selling system Lifenet 1. Lifenet Insurance policyholders data compiled by Lifenet Insurance customer survey from Oct. 1, 2017 to Oct. 15, 2017). Copyright LIFENET INSURANCE COMPANY All rights reserved. 18

Pursuing Convenience Lifenet offers our products and services 24 hours a day, seven days a week through the Internet and extensive convenience as an online

Enhancement services through Smartphone We offer services that customers and policyholders can consult insurance products, apply for them and file for benefit

2016) Around 10pm with a large number of application Insurance consultation via LINE (Start from Jul.

20 Pursuing Convenience Lifenet offers our products and services 24 hours a day, seven days a week through the Internet and extensive convenience as an online insurer. Enable customers to apply insurance anytime We use the Internet to offer products and services that fit the lifestyle of the younger generation. Enhancement services through Smartphone We offer services that customers and policyholders can consult insurance products, apply for them and file for benefit claims via smartphone. Online service for Benefit claim Payment (Start from Mar. 2016) Around 10pm with a large number of application Insurance consultation via LINE (Start from Jul. 2016) Insurance consultation with partner via LINE (Start from Sep. 2017) (pm) (am) Source: Lifenet, based on the number of application by time (April 2017 June 2017) Paperless application Process (Start from Dec. 2016) Copyright LIFENET INSURANCE COMPANY All rights reserved. 19

Advanced Marketing Strategy We develop an advanced marketing

TVCM Efficient advertising approaches to attract website

publications Social media Marketing using all our employees

Underlying support Gradual kaizen improvements to marketing via

21 Advanced Marketing Strategy We develop an advanced marketing strategy with an innovative mix of efforts and channels including high profile advertising icons. We have successfully acquired valuable marketing customers. TVCM Efficient advertising approaches to attract website visitors Our unique marketing approaches Documents and publications Social media Marketing using all our employees Online Advertisement Owned Media Lifenet Journal Online Underlying support Gradual kaizen improvements to marketing via our website and online advertising SEO Initiative Website improvements Copyright LIFENET INSURANCE COMPANY All rights reserved. 20

Unique Customer Base New Customers from their 20s to 40s make up roughly 85% of our policyholder base, with more than 50% of new policyholders taking out life insurance for the first time.

Number of new policies by age group Lifenet 1 The way of buying a policy 3 The share of households taking out life insurance for the first time accounted for the majority, despite the percentage of

22 Unique Customer Base New Customers from their 20s to 40s make up roughly 85% of our policyholder base, with more than 50% of new policyholders taking out life insurance for the first time. We have maintained certain level of surrender and lapse ratio since business commencement. Number of new policies by age group Lifenet 1 The way of buying a policy 3 The share of households taking out life insurance for the first time accounted for the majority, despite the percentage of households holding policies being 90%. Fiscal % 15% 12% 10% 0% 20% 40% 60% 80% 100% Reference: Average for other life insurers 2 Taking out life insurance for the first time Supplementing existing cover (a different insurer + Lifenet) Switching from a different insurer Supplimenting exsiting cover and switching from previous policy in Lifenet Surrender and lapse ratio Maintaining between 6% to 7% level since commencement of operation in 2008 Surrender and lapse ratio in Fiscal 2017: 5.9% 1. Lifenet Insurance new customer data (FY2017) compiled by Lifenet Insurance customer survey. Based on number of new policies, 39,175 that were completed during FY Annual statistics on customer age and gender (FY2017) compiled by The Life Insurance Association of Japan. Based on number of new policies. 3. FY2017 valid responses from 4,691 Copyright LIFENET INSURANCE COMPANY All rights reserved. 21

High Quality Services & Third-party Evaluation Lifenet offers high quality services through our Contact Center, the direct point of contact with customers,

As the result, we received various awards for high quality products and services.

be made online, 24 hours a day Insurance claims and benefits to be made in minimum 2 days Fiscal 2017 Average Claims Payment Period 2 2.

com Insurance Award 2018 3 Contact Center and Website awarded 3 stars in the 2017 HDI Contact Center ranking for 6th consecutive year 1.

Cases which required fact confirmation before insurance payments were made are not included when calculating the average number of days required for payment.

23 High Quality Services & Third-party Evaluation Lifenet offers high quality services through our Contact Center, the direct point of contact with customers, and through insurance payments, the most important responsibility of an insurance company. As the result, we received various awards for high quality products and services. High quality services -insurance payments- Medical certification submission no longer necessary for most medical claims 1 Medical insurance benefit claim to be made online, 24 hours a day Insurance claims and benefits to be made in minimum 2 days Fiscal 2017 Average Claims Payment Period days Awards Term Life Kazoku and Long-term Disability Hataraku-Hito2 Ranked 1st in Kakaku.com Insurance Award Contact Center and Website awarded 3 stars in the 2017 HDI Contact Center ranking for 6th consecutive year 1. Excluded whole-life medical New Jibun for Women 2. Not including the number of days required to obtain lacking documents. Cases which required fact confirmation before insurance payments were made are not included when calculating the average number of days required for payment. 3. The most popular insurance products in each category of life insurance (term-life) and long-term disability insurance from January through December 2017, receiving the highest number in Kakaku.com Insurance Source: Kakaku.com Insurance Award 2018 hosted by Kakaku.com Insurance, the 2017 HDI Benchmarking (Life Insurance Industry) hosted by HDI-Japan (Operated by ThinkService K.K.) Copyright LIFENET INSURANCE COMPANY All rights reserved. 22

25 Focusing on Expanding Scale of Our Business Scaling our business through more concerted marketing efforts and spend. Scale expansion itself will ultimately improve our profitability over the medium-to-long term. The ensuing economies of scale allow us to stretch our operating expenses across a wider revenue base. Enhanced revenue base Insurance premiums increase Cycle of expanding business scale Further investment in marketing expenses Growth of new business performance Lower ratio of operating expenses 1 Profitability improvement in the mid-tolong term 1. The ratio of operating expenses (excluding marketing expenses) to premiums income Copyright LIFENET INSURANCE COMPANY All rights reserved. 24

26 Advantage Brought by Expanding Business Scale The life insurance is a business model with strong economies of scale on the cost side. As we scale out our business, margins improve from a fixed cost spread out over a wider revenue base. With this lower ratio of operating expense 1, we will be able to allocate more of our resources into marketing with greater positive impact on our profitability in the medium-to-long term. : Insurance premium (JPY mn) : Operating expenses excluding marketing expenses (JPY mn) : Ratio of operating expenses (Operating expenses excluding marketing expenses/insurance premiums) 37.7% 10,421 Insurance premiums 5, % Operating 2,215 2,315 expenses Future 1. The ratio of operating expenses (excluding marketing expenses) to premiums income 2. Operating expenses excluding marketing expenses Decreasing by insurance premium increase (image) FY Copyright LIFENET INSURANCE COMPANY All rights reserved. 25

27 Initiatives for growth of new business performance Lifenet aims to grow new business performance through steadily conducting initiatives and continuously creating unique sales point in all channels. Online direct sales Online direct sales -Promote sales by aggressive investment in marketing expenses -Improve website continuously to optimize smartphone site KDDI Agent KDDI -Enhance sales of new Cancer Insurance product -Trial sales at shops in progress Agent -Expanding scale of agents/shops -Enhance sales of Long-term Disability product Copyright LIFENET INSURANCE COMPANY All rights reserved. 26

Technology FinTech InsurTech HealthTech Medical care Health Life support by insurance

28 Utilization of Technology Aim to provide further products, services and information from customer perspective utilizing technology Money Child -rearing Insurance Work Digital Technology FinTech InsurTech HealthTech Medical care Health Life support by insurance and related information/services Copyright LIFENET INSURANCE COMPANY All rights reserved. 27

29 Revised Business Forecast Fiscal 2018 The business forecasts for fiscal 2018 was revised in August 2018 as shown below, due to further aggressive investment in marketing expenses to expand the scale of our business as our strong business performance in 1Q of fiscal 2018 following fiscal (JPY mn) Revised Business forecast for FY2018 Original Business forecast for FY2018 (Reference) Results for FY2017 Ordinary income 12,300 12,000 10,962 Ordinary profit (loss) (800) 0 (197) Net income (loss) (600) 0 (249) Under the current statutory accounting on the profit and loss statement, the entire cost associated with the acquisition of new business is recognized as a current period expense. Consequently, the more new business grows, the greater the profit decline during the current period, due to the growth in costs posted during the current fiscal year. Meanwhile, the impact to ordinary income in a single year is limited as the income from insurance premiums, which is the revenue, is recognized over a long period of time. See the detail on 3 page of IR Meeting Supplementary Materials Copyright LIFENET INSURANCE COMPANY All rights reserved. 28

30 Progress of Business forecast (ordinary income) for fiscal 2018 The progress of business forecast (ordinary income) is as followed. We continuously aim for strong growth of ordinary income while investing in marketing expenses. 9,387 10,096 10,962 Business forecast for FY ,300 (million yen) 1Q 2,954 FY15 FY16 FY17 FY18 Copyright LIFENET INSURANCE COMPANY All rights reserved. 29

31 This material is based on information as of September All information on this document that is not historical fact constitutes forward-looking information and is based on assumptions and forecasts available to the company at the time of preparation. The company cannot guarantee the accuracy of these assumptions and forecasts. Earnings projections and other information on this may differ materially from actual performance due to various risks and uncertainties. Subscribe to our "IR service" to receive news releases and website updates via . Contact: Investor Relations, Corporate Planning Dept.

Financial Results for Fiscal 2014 Ended March 31, 2015 Ordinary income of 8,729 million yen, year on year 14.8% up

May 14, 2015 Daisuke Iwase, President & COO LIFENET INSURANCE COMPANY (Securities Code: 7157, TSE Mothers) Financial Results for Fiscal 2014 Ended March 31, 2015 Ordinary income of 8,729 million yen, year