T&D (8795) Investor update summary

Key financial highlights

• Announced a record share buyback of ¥100 billion for FY ending March 31, 2025, with total shareholder return of ¥141.6 billion.

• Forecasts group adjusted profit of ¥140 billion for FY ending March 31, 2026, and targets ¥200 billion by FY ending March 31, 2031.

• Achieved the long-term vision profit target of ¥130 billion one year ahead of schedule, driven by domestic insurance growth.

• Adjusted ROE for FY2024 expected at 9.0%, exceeding cost of equity.

• Investment in Viridium (Germany) for ¥120 billion to diversify earnings and expand closed book business.

Dividend and shareholder return policy

• Transitioning to a 60% dividend payout ratio based on a 5-year average of group adjusted profit.

• Annual dividend per share forecasted at ¥120 for FY ending March 31, 2026, up ¥40 from previous year.

• Commitment to not cut dividends in principle, with additional returns considered if ESR exceeds 225%.

• From April 2021 to March 2025, total payout ratio reached 109%, with cash dividends and share buybacks exceeding group adjusted profit.

• Cash dividends expected to rise significantly due to higher profits and increased payout ratio.

Strategic investments and growth initiatives

• Investing in closed book businesses like Viridium to diversify regional and business model exposure.

• Focus on steady growth in core domestic life insurance and building profits in closed book business.

• Value of in-force business and positive spread expansion support performance, aided by ALM improvements.

• Next long-term vision (from FY2026) will emphasize new investment opportunities and integrated group management.