第一生命ホールディングス（8750） – Supplementary Materials for the Fiscal Year Ended March 31, 2022 (Dai-ichi Life Holdings, Inc.)

[Unofficial Translation] May 12, 2022 Seiji Inagaki President and Representative Director Dai-ichi Life Holdings, Inc. Code: 8750 (TSE Prime section) Supplementary Materials for the Fiscal Year Ended March 31, 2022 (Dai-ichi Life Holdings, Inc.) Financial Results for the Fiscal Year Ended March 31, 2022May 12, 2022Dai-ichi Life Holdings, Inc.Contents Key Highlights Group EEV Reference Data Group Companies Performance OverviewDLDai-ichi LifeCurrency Exchange Rates(TTM)As of endMarch 2022December 2021March 2021December 2020¥/US$¥122.39¥115.02¥110.71¥103.50¥/Euro¥136.70¥130.51¥129.80¥126.95¥/AU$¥92.00¥83.42¥84.36¥78.84P.2P.11P.20P.26Group Company Name Abbreviation, Equity Share and Fiscal YearDomestic Life Insurance BusinessEquity Share Fiscal Year100％100％DFLDai-ichi Frontier Life100％Apr -MarNFLNeo First LifeOverseas Insurance BusinessPLC[USA] Protective Life Corporation100％Jan – DecTAL[Australia] TAL Dai-ichi Life Australia100％Apr -MarDLVN [Vietnam] Dai-ichi Life Insurance Company of Vietnam100％DLKH [Cambodia] Dai-ichi Life Insurance (Cambodia)100％Jan – DecDLMM [Myanmar] Dai-ichi Life Insurance Myanmar100％SUD[India] Star Union Dai-ichi Life Insurance Company45.9%Apr -MarPDL[Indonesia] PT Panin Dai-ichi Life40％OLI[Thailand] OCEAN LIFE INSURANCE PUBLIC COMPANY24%Jan – DecDLRe[Bermuda] Dai-ichi Life Reinsurance Bermuda100％Other Business (Asset Management) AMOne Asset Management One49％(Voting rights)30％(Economic interest)Apr -Mar1Key HighlightsFY2021 ResultsReached record-high level; Adj. profit exceeded our expectation due to one-time investment incomeProfitGroup Adj. Profit¥296.1bn▸ Up 5％ YoY: Higher investment income at DL and PLC, exceeded revised forecast at Nov. Net Income¥409.3bndue to rising overseas interest rates.▸ Up 13% YoY: Besides an increase of adj. profit, improvement of MVA related gains at DFL contributedCapital EfficiencyGroup Adj. ROEGroup ROEV8.0%4.9％New Business (NB)Group NB ANP¥313.1bnGroup VNB¥126.6bnNov.▸ Down 0.9%pt YoY: While higher adj. profit and share buybacks positively contributed, increase of unrealized gains unfavorably affected.▸ Impacted by rising overseas interest rates and changes of insurance-related assumption at DL (DL’s ROEV:1.2%).▸ Up 32% YoY / Up 6% vs FY2019 excl. impact of the large group contract at TAL and exchange rate impact. While DL is still on the way to recovery with decrease by 17% vs FY2019 pre-Covid period, recovery at DFL and steady growth at NFL and overseas contributed.▸ Down 0.4％ YoY: Overseas offset the decline at DL and DFL, securing the level of revised forecast at FY2022 ForecastAdj. profit is forecasted at approx. ¥270bn due to a reactionary YoY decline in investment incomeProfitGroup Adj. Profitapprox. ¥270bn▸ Impact of a reactionary YoY decline in investment income at DL and PLC.New BusinessGroup VNBapprox. ¥154bn▸ Improvement of product mix at DL and increase in new business at other group companies is expected.Shareholder Payouts Share buybacks of up to ¥120bn, dividend per share is expected to increase to ¥86 for FY2022FY2021FY2022 (forecast)Dividend per Share¥83▸ Based on dividend payout ratio 30% of the past 3 years average of group adj. profit. (+¥21 YoY)Share BuybacksUp to ¥120bn▸ Determined based on ESR (225%), cash position (about ¥200bn), strategic investment opportunities, etc.Dividend per Share¥86expected number of shares after share buybacks.▸ Determined based on group adj. profit forecast, dividend payout ratio of 30%, and consideration of the COVID-19 related Insurance Claims* Cumulative total since the start of measurement (March 2020).Identified as of Mar. 31, 2022. Exchange rates as of end of Mar. 2022 applied to foreign currencies, after accounting for reinsurance.DomesticOverseasDeath Benefit (Payment) Hospitalization BenefitCasesAmountCasesAmount2,494¥14.6 billion 110,142¥11.9 billion17,143¥81.1 billion28,866¥2.0 billion2Highlights: Profit – Group Adjusted Profit and Net Income▶ Group adjusted profit increased by 5% to ¥296.1 billion, driven by the higher positive spread, capital gains at DL and strong profit at PLC and DLVN.DL made reinsurance ceding transaction of ¥200 billion (up from ¥100 billion as forecasted in Nov.2021) in 2H, considering favorable domestic interest rate environment. Total reinsurance transaction amount for FY2021 reached to ¥500 billion.▶ Net income increased by 13% to ¥409.3 billion, due to the improvement of MVA related gains (losses) at DFL and one-time gains related to Group Tax Sharing System introduction.Drivers affecting Group Adjusted Profit(¥ in billions)Domestic (¥6.7bn)Overseas +¥22.8bn(+) Positive spread(ー) Decrease of gains from core insurance activities(ー) One-time expense on surplus relief coinsurance cancellation, etc.(ー) Reactionary decline in gains on sale of securities due to reaching investment target, etc.(+) Underlying profit (ー) Impact of interest rate change, etc.(+) Deconsolidation of JH, etc.Adjusted Profit to Net IncomeDFL/NFL Group Tax Sharing SystemOthersAmortization of goodwillDFLMVA relatedgains(losses),etc.(+) Gains on financial derivatives(+) Foreign exchange gains(ー) Gains on sale of securities(ー) Reinsurance ceding, etc.(＋) Reversal of CECL allowance(＋) Derivative/fixed income gains(losses) improvement(＋) Operating income increase (Stable Value Products, etc.)(－) Increase of claims payment (Retail business, etc.), etc.(+) Profit increase at DLVN Group Adjusted ProfitFY2020Group Adjusted ProfitFY2021Net IncomeFY2021DLFundamental Profit(1)DLCapital, etc.(1)DFLNFLPLCTALOther OverseasAssetManage-mentDLRe,HD, etc.(Drivers affecting adj. profit to net income)(1) Fundamental profit before tax. “DL Capital etc.” includes changes in corporate tax, net capital and non-recurrent gains(losses).3(8.1)54.9(4.7)282.812.315.85.2(2.8)296.1(14.1)37.415.27.59.9FY2021FY2020480.5(306.1)57.1496.4(296.6)19.0409.3363.7+80.0+29.2(5.7)(6.9)(0.7)+57.4+40.8 －Highlights: Capital Efficiency – Group Adjusted ROE and Group ROEV▶ Despite the positive impact of higher adjusted profit at DL and overseas subsidiaries and share buybacks, the group adjusted ROE decreased by 0.9%pt to 8.0%, due to an increase in unrealized gains on riskier assets at DL as the stock market has continued to rise since March 2020.▶ Group ROEV of 4.9% was impacted by a downward pressure on EEV through the decrease of unrealized gains at DL and DFL due to rising overseas interest rate, insurance–related assumption changes at DL, partially offset by the increase of overseas subsidiaries mainly at PLC.(¥ in billions)Mainly increase in unrealized gains on investment assets at DLGroup Adjusted ROENumerator (Adj.Profit) factorsDenominator(Net assets) factors＋0.4％(1.3％)Share buybacksChanges in shareholder s’ equity, unrealized gains, etc.DLDFL/NFL Overseas others(¥ in billions)Adjusted ROE GroupAdj. ProfitFY2020FY20218.9%8.0%282.8 296.1 Adj. Net Assets for ROE3,172.3 3,714.6Adjusted ROE DLAdj. Profit8.4%8.2%174.4 199.7 Adj. Net Assets for ROE2,077.12,450.5FY2020FY2021Mar-21Group ROEVROEV4.9％(Non-EconomicAssumptions)ChangesVNBExpectedexisting businesscontribution(EconomicAssumptions)ChangesOthersDifference betweenassumptionsand resultAdjustment(Including foreign exchange change, etc.)Total approx.+¥601.5 billionDLDFLPLCapprox. (87.0)approx. (93.0)approx. +67.0 etc.(DL)Changes of incidence/surrender rate, etc. (approx. (100.0))Change of operating expenses rate (approx. (56.0)) etc.Mar-21AfterAdjustmentsMar-224Highlights: New Business – New Business and In-force Business ANP▶ In domestic, DFL increased new business volume in the 2H, partly due to higher overseas interest rates, and sales at NFL remained solid thanks to revision of its core medical insurance product. DL is still in the way of recovery despite the strong sales of hospitalization insurance with lump-sum benefit (simplified application type), and a gradual declining trend in the share of policy conversions sales in terms of the number of total policies sold.▶ Overseas new business increased YoY, reflecting strong sales of products to corporates and variable annuity at PLC and steady sales to individuals at TAL and contribution from alternative channel sales mainly bancassurance at DLVN. Excluding the impact of the large-scale group insurance contract acquired at TAL in FY2019, group total new business ANP increased by 6%.New Business and In-force Business ANPNew Business ANPIn-force Business ANP(¥ in billions)(6.8%)((9.4％) excl. exchange rate impact)+4.4%(+0.4％ excl. exchange rate impact)+5.7%excl. the impact of large-scale contract at TAL and exchange rate336.0313.1+36.8％(+32.3％)228.84,054.64,234.3Domestic lifeprotection type products share32%35%33%FY2019FY2020FY2021DomesticOverseasAs ofMar-21As ofMar-22DomesticOverseas(1) From 3Q of FY2020 measurement of NFL sales at DL channel reflects refinement. (2) From 1Q of FY2020 new business ANP calculation standard was revised and data for prior periods was adjusted retroactively.% change shown lower excludes exchange rate impact5(\ in billions)FY2020FY2021ChangeYoYChangevs FY2019As ofMar-21As ofMar-22Change+0.4%(1.4%)DL61.674.5+21.0%(16.8%)2,076.92,052.7(1.2%)o/w Third sector36.748.2+31.6%(11.8%)696.8708.8+1.7%DFL77.5117.9+52.1%(1.6%)+4.3%o/w DL channel13.823.1+67.5%(20.8%)(2.1%)NFL12.014.2+17.8%+29.8%o/w DL channel6.27.5+20.3%+100.5%+37.0%(8.0%)+17.2%+23.6%(15.5%)+6.3%+53.7%+62.1%+15.3%+38.3%+54.4%+3.7%+7.4%(74.6%)+17.1%(1.5%)(81.7%)+7.4%+24.1%+33.5%+31.4%+11.7%+25.5%+18.3%+32.9%+528.3%+101.8%+27.5%+530.1%+102.3%+36.8%(6.8%)+4.4%+32.3%(9.4%)+0.4%597.9976.01,144.1In-force Business ANP861.0898.3140.5139.0(1.1%)4,054.64,234.30.14 0.29 New Business ANP518.728.813.9313.10.2023.2 TAL(2)12.9Dai-ichi Life Group228.8 DLKH/DLMM73.196.1384.0449.741.163.277.5106.3206.7+36.7%0.15151.2 PLCOverseas DLVN3,078.5(6.2%)3,090.1Domestic(1)Highlights: New Business – Group Value of New Business▶ Group VNB was almost flat YoY, with NFL and overseas offset the decline at DL and DFL, resulting to achieve the Nov.2021 forecast level.▶ DL was impacted by an increase in policy conversions with a limited profitability and reflection of actual unit costs (the share of medical insurance policy conversion is on a downward trend)▶ DFL is on an improving trend amid rising overseas interest rates, however, the corporate bond investment spread used for the calculation (based on ICS publication) was lower than the actual investment yield, which led VNB to remain low. ▶ At overseas VNB increased 137% YoY with PLC, TAL, and DLVN steadily expanded new business.Group VNB and EEV Change Drivers(0.4%)Domestic: (16％)Overseas: +137%(¥ in billions)FY2020127.113.318.0 11.3OverseasLifeNFLDFLDL(1)84.4Group 106％ (Domestic: 108％ ／ Overseas: 102％)Progress rate vs Nov.2021 forecast[Reference: vs May 2021 forecast]Group 80% (Domestic: 74％ ／ Overseas: 102％)68.6DLFY2021126.631.5224.3Overseas• YoY increase and exceeded forecast mainly due to strong new business sales at PLC and DLVNNFLDFL• Increase of new business sales volume offset deterioration of insurance benefit payment assumption• New business sales is on a recovery trend, mainly in the second half• Negative impact of divergence between actual investment yields and excess corporate bond spreads (based on ICS publication) used for VNBcalculation• Increased conversion of medical insurance policy with limited additional profitability and reflection of actual unit costs- Share of the number of conversion policies1Q: 73％ → March (1 month): 63％ (Annual: 69％)(conversion of medical insurance)1Q: 33％ → March (1 month):15％ (Annual: 24％)DLDFLNFLPLCTALDLVN(1) Amid spread of Covid-19, a part of the sales reps salary compensation and sales-related fixed costs (a total of about ¥57 billion) not included for calculation of DL value of new business for FY2020, but directly deducted from EEV 6adjusted net assets.FY2022 Group Earnings Forecast▶ Group adjusted profit is forecasted at approx. ¥270bn due to a reactionary YoY decline in investment income at DL and PLC.FY2022 Group Earnings ForecastFY2021 Financial Results/Group Earnings Forecast(1) Figures for Protective and TAL are disclosed after re-classifying items from Protective and TAL’s financial statements under US and Australian accounting standards, respectively to conform to Dai-ichi Life Holdings’ disclosure standards. (2) “Net Income” represent “Net income attributable to shareholders of parent company.“ (3) FY2022 forecast based on the revised of the calculation method and YoY change compared with revised FY2021 amount .7Actual(\ in billions unless otherwise noted)（％）（％）vs. ForecastOrdinary revenues7,612.0 (597.7) (7%)7,827.88,209.7+ 381.9+ 5%7,232.0114%Dai-ichi Life3,563.0 (887.8) (20%)3,811.74,450.8+ 639.1+ 17%4,055.0110%Dai-ichi Frontier Life2,105.0 (109.6) (5%)2,217.12,214.6 (2.4) (0%)1,589.0139%Protective (US$ in millions)(1)9,750 (3,650) (27%)12,10713,400+ 1,292+ 11%12,400108%TAL (AU$ in millions)(1)7,680+ 1,275+ 20%6,2676,404+ 136+ 2%6,52098%Ordinary profit512.0 (78.8) (13%)552.8590.8+ 38.0+ 7%520.0+ 114%Dai-ichi Life383.0+ 4.0+ 1%373.7378.9+ 5.1+ 1%378.0100%Dai-ichi Frontier Life59.0 (64.1) (52%)114.7123.1+ 8.3+ 7%68.0181%Protective (US$ in millions)(1)340 (238) (41%)461578+ 116+ 25%500116%TAL (AU$ in millions)(1)260+ 96+ 59%253163 (90) (36%)150109%Net income(2)285.0 (124.3) (30%)363.7409.3+ 45.5+ 13%349.0117%Dai-ichi Life187.0 (12.7) (6%)196.0199.7+ 3.7+ 2%200.0100%Dai-ichi Frontier Life45.0 (93.6) (68%)86.3138.6+ 52.3+ 61%92.0151%Protective (US$ in millions)(1)280+ 2+ 1%362277 (84) (23%)41068%TAL (AU$ in millions)(1)180+ 53+ 43%171126 (45) (27%)100126%Group Adjusted Profitapprox.270.0 (26.1) (9%)282.8296.1+ 13.3+ 5%approx.270.0110%Group VNBapprox.154.0+ 27.3+ 22%127.1126.6 (0.5) (0%)approx.119.0106%Dividends per share (\)86+3+ 4%6283+ 21+ 34%80104%(Reference) Fundamental Profit(3)[rev.]approx.420.0 (130.1) (24%)623.2638.9+ 15.7+ 3%approx.560.0114%[rev.] 550.1o/w Dai-ichi Life[rev.]approx.300.0 (107.6) (26%)480.5496.4+ 15.8+ 3%approx.450.0110%[rev.] 407.6FY2022ForecastYoY ChangeFY2021Forecast(Nov.)FY2020FY2021YoY ChangeFY2022 Group Adjusted Profit and Value of New Business Forecast▶ At DL improvement in reinsurance ceding related losses and gains on sales of securities will almost offset the decrease in fundamental profit due to increase in currency hedging costs and higher Covid-19 related insurance claims. Taking into account expanded the scale of reinsurance ceding executed in FY2021 and current interest rate trends, new budget for FY2022 includes reinsurance ceding of approximately ¥100 billion policy reserves.▶ While PLC expects a certain improvement in Covid-19 related insurance claims, a reactionary decline in one-time investment gains recorded in FY2021 will have a major impact. ▶ Group value of new business is expected to be impacted by improvement of product mix due to decrease in conversion policies with limited additional profitability at DL and increase in new business at other group companies.Group Adjusted Profit Forecast Change DriversVNB Forecast Change Drivers(－) Decrease of positive spread approx.¥51bn(－) Decrease of gains from core insurance activities approx.¥53bn(＋) Absence of negative impact from interest rate change recorded in FY2021, etc.(＋) Absence of expense on surplus relief coinsurance cancellation recorded in FY2021(－) Reactionary decline in gains on sale of securities due to reaching investment target , etc.(¥ in billions)(¥ in billions)Improvement of product mix at DL and steady sales growth at other companies is expected.DLVN almost flat, etc.(－) Decrease of reversal of allowance for expected credit losses(－) Decrease of investment income (Acquisitions business) (＋) Improvement in insurance claims payments, etc.approx.270.0285.0DFLMVA related gains(losses),etc.Group Adjusted ProfitFY2021(＋) New reinsurance transaction(ceding) factored inan non-recurrent loss of approx. ¥22 billion (improvement of approx. ¥86bn YoY)(＋) Gains on sale of securities, etc.Group Adjusted ProfitFY2022Net IncomeFY2022ActualFY2021DLFundamental Profit(1)(2)DLCapital, etc.(1)(2)DFL/NFLPLCTALOther OverseasAsset Management, etc.DLDFL/NFL Overseas LifeFY2022(Forecast)approx. 300.0(113.0)13.534.017.516.0+15.0285.086.028.539.0FY2021407.6(207.8)10.854.912.315.8296.1+113.2409.368.626.331.5126.6approx. 270.01.52.3(1) Fundamental profit before tax. “DL Capital etc.” includes changes in corporate tax, net capital and non-recurrent gains(losses). (2) FY2022 forecast and FY2021 based on the revised fundamental profit calculation methodapprox.154.0ForecastFY2022approx. 154.08Shareholder Payouts▶ For FY2021 shareholder payouts, we plan to pay a dividend of ¥83 per share (up ¥21 YoY) based on dividend payout ratio of 30% to group adjusted profit average for past 3 years, and share buybacks of up to ¥120 billion as an additional payout (total payout ratio 69% of single-year adjusted profit).▶ Dividend per share for FY2022 is expected to be ¥86 (up +¥3 YoY), considering group adjusted profit forecast, dividend payout ratio of 30% and expected number of shares after share buybacks.Shareholder Payouts[Policy on cancellation of treasury stock]The treasury stock is expected to be cancelled at an appropriate timing unless it is held for any specific reason.FY2021 Shareholder PayoutsFY2022 Shareholder Payouts ForecastDetermined share buybacks up to ¥120.0bn, in addition to dividend payout ratio of 30%Group Adj. Profitapprox.¥270.0bnGroup Adj. Profit¥296.1bnShare Buybacks¥120.0bnPast 3 year avg.(FY2019-FY2021)¥284.5bn×30％Share Buybacks• Determined share buybacks up to ¥120.0bn based on the following situation.- ESR: 225％ (Estimate)- Cash position of the holding company:approx.¥200.0bn (As of end Mar. 2022)(1)- Remittances from subsidiaries:Remittance ratio is expected to increase YoY- Existence of strategic investment opportunities,our stock price, etc.Dividends• Determined dividend per share ¥83 (+¥21 YoY) based on dividend payout ratio of 30% and actual number of shares after share buybacks implemented in FY2021.Dividend per share(Plan)¥83Total Dividend (plan)¥85.3bn(1) Incl. the cash balance at the intermediate holding companyDividend per share is expected to increase to ¥86Additional Payout• Based on ESR level, etc. flexible additional payouts may be considered.(Rough guide for total payout ratio:Medium-term avg.50％)Dividends• Total dividends (forecast) & dividend per share (forecast) assumes:- Dividend payout ratio of 30% or more(based on the average group adjusted profit for past 3 years)- Total number of shares:994 million (excluding treasury stock)9Past 3 year avg.(FY2020-FY2022)approx.¥282.9bn×30％Dividend per share(forecast)¥86Total payout(Forecast)¥85.4bn[Reference] Revision of Fundamental Profit Calculation Method▶ From the perspective of reflecting the economic reality and achieving consistency in the insurance sector, the calculation method of fundamental profit is scheduled to be revised from FY2022. Our fundamental profit forecast reflects this revision, and to be disclosed based on revised standard from 1Q.▶ If the revision reflected for the actual FY2021 results, the fundamental profit (positive spread) would decrease by ¥88.7 billion. No impact on the adjusted profit, group underlying performance indicator, as well as ordinary profit and net income.Fundamental profit revised amountsRevised amounts for DL (FY2021 actual)Reclassified from positive spreadto net capital gains①Gains (losses) frommutual investment funds cancellation 46.0②Foreign exchange impact in gains (losses) 16.6on redemption of securities＋62.6Reclassified from foreign exchangegains (losses) to positive spread(26.0)④Foreign exchange hedging cost(26.0)* No impact on ordinary profit, net income, and adjusted profit③ Revision associated with gains (losses) related to reinsurance have been already adoptedand will not impact group results.Revised itemsDirection of revision①Gains (losses) from mutual investment funds cancellation②Foreign exchange impact in gains (losses) on redemption of securities③Gains (losses) from reinsuranceGains (losses) fromin-force reinsurance cedingOther reinsurance related gains (losses) associated with other profits (losses) treated outside of fundamental profit④ Foreign exchange hedging costExcluded fromFundamental profitIncludedin Fundamental profitRevised amounts for domestic life subsidiaries(¥ in billions)FY2021DomesticLifeDLDFLNFL[Before][After]Change496.443.9(7.9)407.6(88.7)43.9(0.0)(7.9)-10[After]FY2021Change407.6(88.7)130.7(88.7)276.8-157.3+88.715.6+26.0(186.0)378.9199.7199.7[Before](\ in billions)FY2021Fundamental profit496.4o/wPositive spread219.5o/w Gains from coreinsurance activities276.8Net capial gains68.5o/wForeign exchangegains (losses)(10.4)(186.0)Ordinary profit378.9Net income199.7Adjusted profit199.7Non-recurrentgains (losses)Group Companies Performance Overview11[Group Companies Performance Overview]Domestic Life Insurance Business: Dai-ichi Life▶ Fundamental profit increased by 3% to ¥496.4 billion mainly due to increase in positive spread derived from decrease in assumed interest rate and increase in dividend income from domestic and foreign equity investments.▶ Adjusted profit increased by 15% to ¥199.7 billion after losses from reinsurance transaction (ceding), due to significant improvement in derivative transactions gains (losses) in the previous year.Performance Results(¥ in billions)FY2020FY2021Change(%)Adjusted Profit174.4199.7+25.3+15％Net Income (loss) YoY change and Adjusted Profit(¥ in billions)Recovery in derivative transaction gains (losses)Fundamental ProfitNet capital gains (losses)Non-recurrent gains(losses)Execution of reinsurance ceding incorporated in the full-year forecastTaxesMVA relatedgains (losses),etc. Extraordinary gains, provision for policyholder dividends+2%Net IncomeFY2020Net IncomeFY2021Adj. ProfitFY2021(1) Estimated impact of strategic whole life insurance reinsurance transactions (ceding), which has been implemented since FY2018, reduces assumed interest and impacts gains from core insurance activities.12(\ in billions)2,285.42,276.1 (9.3)(0%)Fundamental profit480.5496.4+ 15.8+ 3%180.0219.5+ 39.5+ 22%300.4276.8 (23.5)(8%)Net capital gains (losses)41.968.5+ 26.6245.9129.5 (116.4)(172.8)(38.6)+ 134.2(31.5)(10.4)+ 21.0(1.2)(8.4) (7.1)(148.6)(186.0) (37.3)(95.9)(72.5)+ 23.328.6- (28.6)Reinsurance income (loss)(79.3)(108.6) (29.3)Ordinary profit373.7378.9+ 5.1+ 1%(22.0)(23.0) (0.9)(18.0)(17.0)+ 1.0(77.5)(87.5) (10.0)(78.1)(68.6)+ 9.5Net income (losses)196.0199.7+ 3.7+ 2%Approx.+6.0Approx.+16.0Approx.+10.0FY2020(Reference) Reinsurance ceding impact(1)Total of corporate income taxesProvision for reserve for PH dividendsProvision for price fluctuation reserveExtraordinary gains (losses)（％）Provision for contingency reserveProvision for additional policy reserveNon-recurrent gains (losses)Loss on valuation of securitiesPremium and other incomeChangeForeign exchange gains (losses)Derivative transaction gains (losses)Net gains (losses) on sales of securitiesPositive spreadGains from core insurance activitiesFY2021[Group Companies Performance Overview]Dai-ichi Life – Initiatives for Market Risk ReductionDuration and Purchase of Policy-Reserve-Matching Bonds(1)Domestic Equity (Market Value/Book Value)(2)(Years)(¥ in billions)(*) From March 2022 disclosure standard has been changedfrom accounting to economic value-based liability duration.Balance of Policy-Reserve-Matching Bonds and Derivatives(¥ in trillions)+¥826.2bn(¥119.1bn)Interest Rate Swaps(Hedged insurance liabilities, hedgeaccounting applied part)Interest Rate Swaption(Receipts fixed, payments floating)¥700.0bn¥700.0bn¥700.0bnDomestic Equity Hedging Positions(Futures sold and put options bought, etc.)¥264.2bn¥414.8bn¥647.1bn¥830.0bn¥460.0bn-¥110.4bn-￥59.9bn[Reference]Foreign Equity Hedging Positions(1) Economic value-based duration of insurance liabilities associated with individual insurance and annuities in the general account , duration of yen-based fixed income assets (including interest rate swaps), and the balance of policy -reserve-matching bonds(PRMB) and derivatives. PRMB is a unique category for bonds, accepted under Japanese GAAP. PRMB is reporte d at amortized cost if the bonds meet certain requirements. (2) Within domestic equity (excluding stocks of subsidiaries, affiliates and not-listed domestic stocks) the book value of equity held for purposes other than pure investment as of end of Mar-22 was ¥74.6 billion.1321.3 21.2 20.2 16.6 17.3 17.6 1516171819202122Duration of Liabilities(Economic Value)Duration of Assets (incl. derivatives)11.69 12.35 12.58 9.39 10.55 11.38 791113Mar-18Mar-19Mar-20Mar-21Mar-22Market Value of PRMBsBook Value2,737.93,518.53,249.91,476.81,407.11,288.005001,0001,5002,0002,5003,0003,5004,000Mar-18Mar-19Mar-20Mar-21Mar-22Market ValueBook Value[Group Companies Performance Overview]Domestic Life Insurance Business: Dai-ichi Frontier Life▶ Fundamental profit decreased by 25% to ¥43.9 billion due to losses related to GMMB risk▶ Net income increased by 61% to ¥138.6 billion mainly due to gains related to MVA of ¥89.3 billion and Group Tax Sharing System introduction. Adjusted profit excluding these items decreased by 67% to ¥19.0 billion mainly due to one-time expense on surplus relief coinsurance cancellation.Performance Results(1)(¥ in billions)FY2020FY2021Change(%)Adjusted Profit57.119.0(38.0)(67％)Net Income (loss) YoY change and Adjusted Profit(¥ in billions)MVA relatedgains (losses),Group tax sharing systemetc.Including one-time gains from group tax sharing systemTaxes,etc.Other capital gains andother non-recurrent lossesChange in reservesFundamental profit and gains (losses) related to GMMB riskMVA relatedgains(losses)+61%(1) Effective from the 1Q FY2021, performance results items have been revised by rearranging previous operating profit to disclosing items other capital gains (sale of securities, etc.), other non-recurrent gains (losses) on sale of securities and reinsurance income (loss) etc. (2) Interest received(paid) related to currency swap and interest rate swap contracts covering foreign-currency denominated insurance policies, along with impact from assets held in money trusts and others related to reinsurance dealings, are reclassified from capital gains(losses), effective from 1Q FY2020.14Net IncomeFY2020Net IncomeFY2021Adj. ProfitFY2021(\ in billions)Premium and other income1,167.51,503.0+ 335.5+ 29%Fundamental profit(2)58.543.9(14.5) (25%)Positive spread andgains from core insurance activities53.847.8(5.9)Gains (losses) related to GMMB risk4.6(3.9)(8.6)Net capital gains (losses)123.3110.8(12.4)Gains (losses) related to GMMB risk(9.9)(2.7)+ 7.2Gains (losses) related to MVA63.489.3+ 25.8Other capital gains(losses)(sale of securities, etc.)69.824.2(45.5)Non-recurrent gains (losses)(67.0)(31.7)+ 35.3Reversal of contingency reserve(48.0)(2.8)+ 45.2Gains (losses) related to MVA (reinsurance)12.0-(12.0)Other non-recurrent gains (losses) (reinsurance income(loss), etc.)(31.0)(28.8)+ 2.1Ordinary profit (loss)114.7123.1+ 8.3+ 7%Extraordinary gains (losses)(5.6)(5.9)(0.2)Provision for price fluctuation reserve(5.6)(5.9)(0.2)Total of corporate income taxes(22.7)21.5+ 44.2Net income (loss)86.3138.6+ 52.3+ 61%Fundamental profit andgains (losses) related to GMMB risk48.541.2(7.3)Other capital andother non-recurrent gain (losses)38.7(4.6)(43.4)Gains (losses) related to MVA75.589.3+ 13.7Provision for contingency reserves andprice fluctuation reserves, and tax(76.4)12.7+ 89.2FY2020FY2021Change（％）[Group Companies Performance Overview]Domestic Life Insurance Business: Neo First Life▶ Premium and other income increased slightly to ¥141.7 billion due to expansion of new business partially offset by surrender of business owners insurance.▶ The increase in insurance payments due to surrender of business owners insurance is offset by the reversal of policy reserves.Net loss improved to ¥6.8 billion from loss of ¥14.1 billion in previous year due to Lower burden from new business acquisition cost through implementation of coinsurance type reinsurance contracts (surplus relief).Performance Results(¥ in billions)FY2020FY2021Change(%)Adjusted Profit(14.1)(8.1)+5.9-Net Income (loss) YoY change and Adjusted ProfitNet LossFY2020Reinsurance incomeExtraordinary gains/losses, taxesPremium& other incomePolicy reservesprovision(¥ in billions)Net LossFY2021Adj. ProfitFY2021Investment& other ordinary gains/lossesGroup tax sharing systemOperating expensesLower burden from new business acquisition cost through implementation of surplus reliefBenefits & claims15(\ in billions)Premium and other income141.1141.7+ 0.6+ 0%Benefits and claims(22.1)(44.6) (22.4)Claims, annuities, benefits(6.4)(9.7) (3.2)Surrender value, other refunds(15.6)(34.8) (19.2)(91.6)(68.4)+ 23.1Provision/reversal for contingency reserve(0.3) (0.1)+ 0.1Operating expenses(27.8)(34.3) (6.4)Reinsurance income(12.7)(1.1)+ 11.5(0.8)(1.2) (0.3)Investment gains (losses)0.20.4+ 0.1Other ordinary gains (losses)(1.1)(1.6) (0.5)Ordinary profit (loss)(14.1)(8.0)+ 6.0-Extraordinary gains (losses) (0.0) (0.0) (0.0)Total of corporate income taxes (0.0)1.2+ 1.2Net income (loss)(14.1)(6.8)+ 7.2-Fundamental profit(13.8)(7.9)+ 5.8-Investment and other ordinaryFY2020FY2021ChangeProvision for policy reserves, etc.（％）[Group Companies Performance Overview]Overseas Insurance Business – Protective, USA▶ Pre-tax adjusted operating income decreased by 19% YoY to $422 million primarily due to higher claims in the Retail Life and Acquisitions business partially offset by increase in operating income from investment management at Stable Value Products business and improvement in Corporate & Other .▶ Net income decreased by 23% to $277 million, mainly due to goodwill impairment offset by improvement in valuation losses in the fixed income portfolio and reversal of allowance for CECL in the commercial mortgage loan portfolio associated with financial market fluctuations.(Note: PLC’s financial results for 1Q(January-March) of FY2022 are scheduled for release around May 13, local time.)Performance Results(¥ in billions)FY2020FY2021Change(%)Adjusted Profit37.454.9+17.4+47%Net Income (loss) YoY change and Adjusted Profit(USD in millions)Goodwill impairment related to Annuity business (excluded from adjusted profit)Pre-tax adj. operating income (99)Retail Life & AnnuityAcquisitionsFixed maturitiesrealized gainsGoodwill impairmentTaxesOther realizedgains (losses)Corporate & OthersSV/AP(23%)Net IncomeFY2020Net IncomeFY2021Adj. ProfitFY2021(1) Derived from net income by excluding realized gains and losses on investments and derivatives, etc. (2) The immediate impacts on DAC, VOBA, reserves and other non-cash items in current period results due to changes in current market conditions on estimates of profitability, which are excluded from pre-tax adjusted operating income (loss) from Q1 of 2021. Data for prior periods was not adjusted. 16(USD in millions)Premiums and policy fees5,9026,321+ 418+ 7%Pre-tax adj. operating income(1)522422(99)(19%)Retail Life & Annuity97(41)(139)-Acquisitions406314(92)(23%)Stable Value Products89170+ 81+ 91%Asset Protection4641(4)(10%)Corporate & Other(117)(62)+ 55-Realized gains (losses) and adj.(61)(47)+ 14Fixed maturities – realized gains (losses)4545+ 0Credit losses, realized gains(losses) on equity, others(87)(0)+ 87Commercial mortgage loans(151)133+ 285Modco – net realized gains and losses133(30)(164)Derivatives related VA, FIA, IUL and STRANN(31)91+ 122VA/VUL market impacts(2)-20+ 20Related DAC/VOBA amortization29(107)(137)Goodwill impairment-(200)(200)Income tax expense(98)(97)+ 1Net income (loss)362277(84)(23%)Net income (\ in billions)37.431.9(5.5)(15%)Exchange rate (\/USD)103.50115.02+ 11.52+ 11%FY2020FY2021Change（％）[Group Companies Performance Overview]Overseas Insurance Business – TAL, Australia▶ Underlying profit increased by 33%, YoY to AU$292 million mainly due to improvement at Individual and Group segments in addition to one-time contribution at Asteron Life after insurance liabilities valuation model change.Net income decreased to AU$126 million due to significant interest rates change (flattening of the yield curve) impacting the market valuation of expected future premium and claims cash flows in the distant future and costs related to Westpac Life acquisition.▶ Following completion of Asteron Life’s integration process, its assets and liabilities have been transferred to TAL as of Oct ober 2021.Performance Results(¥ in billions)FY2020FY2021Change(%)Adjusted Profit15.212.3(2.9)(19％)Net Income (loss) YoY change and Adjusted ProfitUnderlying profit +72(AUD in millions)Interest rate impactImpact from significant interest rates change (flattening of the yield curve) on market value of assets and liabilitiesOther underlying itemsGroupIndividualIntragroup reinsurance, Others. etc.VOBA/VIFamortizationPreferred shares dividend(27%)Net IncomeFY2020Net Income FY2021Adj. ProfitFY2021(1) Following completion of integration process, from the third quarter of FY2021, underlying profit of Asteron Life was integrat ed into Individual, Group and Other underlying items. FY2020 results reclassified for comparability.(2) From the perspective of Group capital efficiency, the profit and loss associated with reinsurance from TAL to a Group company (DL) is shown.17(AUD in millions)Premium and other income5,6706,219+ 548+ 10%Underlying profit (after tax)(1)219292+ 72+ 33%Individual230252+ 21+ 9%Group(1)91+ 93-Other underlying items(9)(51)(42)-(47)(166)(118)Interest rate impact on A&L19(40)(60)VOBA/VIF amortization23(19)(42)RPS, sub notes costs(16)(15)+ 0Intragroup reinsurance(2)(30)(50) (20)Others (44)(39)+ 4Net income (loss)171126(45) (27%)Net income (loss) \ in billions14.411.5(2.8) (20%)Exchange rate (\/AUD)84.3692.00+ 7.64+ 9%Non-underlying items (after tax)FY2020FY2021Change（％）[Group Companies Performance Overview]Overseas Insurance Business – Dai-ichi Life Vietnam▶ Premium and other income increased by 19% YoY due to steady expansion of both new and in-force business.▶ Net income increased by 115% YoY to VND2,830bn due to expansion of renewal premium and one-time reversal of reserves after deregulation of policy reserve calculation for some products.Performance Results(¥ in billions)FY2020FY2021Change(%)Adjusted Profit5.914.1+8.2+139%Net Income (loss) YoY changeNet income (before tax) + 737(excluding revaluation of policy reserves due to interest rate fluctuations, etc.)(VND in billions)Renewal premiumOperating expensesReversal of reserves after deregulation of policy reserve calculation exceeded provision of policy reservesOtherincomesPolicy reservesTax1st year premiumNet IncomeFY2020Claims, payments, refunds, etc.+115%Policy reserves revaluationNet IncomeFY202118(1) Insurance premium received from second year forward.(VND in billions)Premium and other income15,61418,647+ 3,032+ 19%First year premium5,2555,987+ 731+ 14%Renewal premium(1)10,35712,659+ 2,301+ 22%Other incomes1,2581,566+ 307Investment related income, etc.1,8332,263+ 429Reinsurance related income(574)(697)(122)Operating expenses(7,805)(8,465)(660)First year commission, distribution expense, etc.(6,157)(6,581)(423)Renewal commission, administration expense(1,647)(1,883)(236)Claims, payments and refunds, etc.(1,792)(2,273)(481)Provision for policy reserves, etc.(5,632)(5,915)(282)(4,545)(6,006)(1,461)(1,087)91+ 1,178Income tax expense, etc.(328)(728)(400)Net income (loss)1,3142,830+ 1,515+ 115%Net income (loss) \ in billions5.914.18.2+ 139%Exchange rate (\/VND)0.00450.0050+ 0.0005+ 11%Net income excl. revaluation impacts (after tax)2,1842,757+ 572+ 26%（％）Provision for policy reserves (before revaluation)Revaluation of policy reserves interest rate, etc.FY2020FY2021Change[Group Companies Performance Overview]Overseas Insurance Business and Other Business (Asset Management)▶ Overseas adjusted profit increased by 38% to ¥83.0 billion due to significant profit improvement at PLC and profit expansion at DLVN.▶ Other Business (Asset Management) adjusted profit decreased by 48% to ¥5.2 billion due to deconsolidation of JH after sale of stake while profit at AMOneOverseas Insurance Business Adjusted ProfitOther Business (Asset Management) Adjusted Profitincreased on higher AUM.+38％83.0 60.2 *Other overseas include ５ companies: DLKH, DLMM, SUD, PDL, OLI*AMOne is our equity method affiliate.*After sale of shares, current stake in JH(Janus Henderson) is 0%.(48％)9.9 5.2 FY2020FY2021AMOneJHFY2020FY2021PLCTAL DLVN Other overseas(1) Fiscal year ends on December 31, for PLC, DLVN, DLKH, DLMM, PDL, OLI.19(\ in billions)AMOne4.55.2+ 15%JH5.4–9.95.2 (48%)[Reference] AUM (\ in trillions)AMOne5759+5%FY2020FY2021Change(\ in billions)PLC(1)37.454.9+47%TAL15.212.3(19%)DLVN(1)5.914.1+139%Other(1)Overseas1.61.6+4%60.283.0+38%FY2020FY2021ChangeGroup EEV(European Embedded Value)20EEV – European Embedded Value – 1▶ Group EEV increased by 3% to ¥7,150.9 billion mainly due to an increase at overseas life amid stable financial markets and yen depreciation.▶ Group VNB decreased by 0.4% to ¥126.6 billion and new business margin decreased by 0.78%pt to 3.0% due to increase in conversion policies with lower additional profitability at DL partially offset by improvement in NFL and overseas subsidiaries.(1) “Covered businesses” are the business areas that are to be covered by the EEV methodology set forth by the EEV principle. Our subsidiaries engaged in the life insurance business (Dai-ichi Life, Dai-ichi Frontier Life, Neo First Life, Protective, TAL, Dai-ichi Vietnam and its subsidiaries) are categorized as covered businesses.(2) “Adjustments related to non-covered businesses” include net worth (as of Mar-21: ¥1,367.4 billion, Mar-22: ¥1,266.2 billion) of non-consolidated Dai-ichi Life Holdings, adjustments related to interest (as of Mar-21: minus ¥1,477.3 billion, Mar-22: minus ¥1,415.4 billion) in six subsidiaries of Dai-ichi Life Holdings that are engaged in the insurance business, and fair value adjustments to assets and liabilities of Dai-ichi Life Holdings.(3) From EEV calculation as of March 31, 2021, standard changes of UFR(Ultimate Forward Rate) and LLP(Last Liquid Point) were app lied, and reflected corporate bond spreads in the discount rate at DFL.21As ofMar-21As ofMar-22ChangeEEV of the Group6,971.17,150.9＋179.7EEV for Covered Businesses(1)6,997.17,200.0＋202.8Adjusted net worth6,962.26,035.8(926.3)Value of in-force business34.91,164.2＋1,129.2(25.9)(49.1)(23.1) (\ in billions)FY2020FY2021ChangeValue of new business of the Group（A）127.1126.6(0.5)Present value of premium income (B)3,367.34,222.3＋855.0New business margin (A/B)3.78%3.00%(0.78%pt)Adjustments related to non-covered businesses(2)Dai-ichi Life Group (\ in billions)EEV – European Embedded Value – 2Domestic Group Companies22 (\ in billions) (\ in billions)Dai-ichi LifeAs ofMar-21As ofMar-22ChangeFY2020FY2021ChangeEEV5,127.44,976.6(150.8)Value of new business84.468.6(15.7)Adjusted net worth5,837.84,944.1(893.7)Present value of premium income1,555.81,636.1＋80.2Value of in-force business(710.3)32.4＋742.8New business margin5.43%4.20%(1.23%pt)Dai-ichi Frontier LifeAs ofMar-21As ofMar-22ChangeFY2020FY2021ChangeEEV587.5585.5(2.0)Value of new business11.34.3(7.0)Adjusted net worth485.5362.0(123.4)Present value of premium income726.11,023.8＋297.6Value of in-force business102.0223.4＋121.4New business margin1.56%0.42%(1.14%pt)Neo First LifeAs ofMar-21As ofMar-22ChangeFY2020FY2021ChangeEEV167.2190.4＋23.1Value of new business18.022.0＋3.9Adjusted net worth20.812.8(8.0)Present value of premium income157.2192.5＋35.3Value of in-force business146.3177.5＋31.2New business margin11.50%11.45%(0.05%pt)VNB (ultimate unit cost base)20.625.8＋5.1NB margin (ultimate unit cost base)13.17%13.40%+ 0.24%ptEEV – European Embedded Value – 3Overseas Group Companies23 (\ in billions) (\ in billions)ProtectiveAs ofDec-20As ofDec-21ChangeFY2020FY2021ChangeEEV624.0881.9＋257.8Value of new business(7.1)8.9＋16.1Adjusted net worth374.6428.5＋53.8Present value of premium income631.81,067.8＋435.9Value of in-force business249.3453.3＋203.9New business margin(1.14%)0.84%+ 1.98%ptExchange rate (\/US$)103.50115.02Exchange rate (\/US$)103.50115.02TALAs ofMar-21As ofMar-22ChangeFY2020FY2021ChangeEEV412.7455.3＋42.5Value of new business8.98.8(0.0)Adjusted net worth216.1240.9＋24.7Present value of premium income186.3183.1(3.1)Value of in-force business196.6214.3＋17.7New business margin4.78%4.83%+ 0.05%ptExchange rate (\/AU$)84.3692.00Exchange rate (\/AU$)84.3692.00Dai-ichi Life VietnamAs ofDec-20As ofDec-21ChangeFY2020FY2021ChangeEEV99.4131.0＋31.6Value of new business11.613.7＋2.1Adjusted net worth48.468.1＋19.7Present value of premium income109.8118.8＋8.9Value of in-force business50.962.9＋11.9New business margin10.57%11.59%+ 1.02%ptExchange rate (\/VND)0.00450.0050Exchange rate (\/VND)0.00450.0050EEV Sensitivity Analysis (as of Mar-2022)Dai-ichi Life GroupDai-ichi Life24Assumptions Sensitivities EEV forcoveredbusinessAdjustments tonet worthetc. of non-coveredbusinessesValue ofNew BusinessAdjustednet worthValue ofin-forcebusiness+297.3+284.8+12.4+8.8(1,505.7)+1,790.6+4%+4%+0%+7% (21%)+25%(459.2)(446.2)(12.9)(12.3)+1,674.5(2,120.8) (6%) (6%) (0%) (10%)+23% (30%)(483.2)(466.1)(17.0) (1.4)(426.0)(40.1) (7%) (7%) (0%) (1%) (6%) (1%)Dai-ichi Life Group EEV7,150.97,200.0(49.1)126.650bp upward parallel shift in risk-free yield curve50bp downward parallel shift in risk-free yield curve10% decline in equity and real estate values[Breakdown for covered business]（¥in billions, upper: change in value, lower: percentage to EEV・VNB)（\ in billions, upper: change in value, lower: percentage to EEV・VNB）Assumptions SensitivitiesValue ofNew BusinessAdjusted networthValue ofin-forcebusiness+291.3+6.6(1,339.3)+1,630.6+6%+10% (27%)+33%(445.1)(8.9)+1,496.0(1,941.1) (9%) (13%)+30% (39%)(438.7)-(438.7)- (9%)- (9%)-Dai-ichi Life EEV4,976.668.650bp upward parallel shift in risk-free yield curve50bp downward parallel shift in risk-free yield curve10% decline in equity and real estate values[Breakdown of Sensitivities]EEV of Dai-ichi Life Group after reclassificationReclassification of EEV from ALM point of viewEEV of Dai-ichi Life Group after reclassificationVIF + unrealized gains:Future profit from in-force businessUnrealized gains on other assets(3)VIF plus unrealized gains on yen-denominated fixed income assets(4)Net worth, etc.plus retained earnings in liabilities(5)Accumulated realized gain(1) EEV of Dai-ichi Life Group as of Mar-15 is restated using the ultimate forward rate.(2) From EEV calculation as of March 31, 2021, standard changes of UFR(Ultimate Forward Rate) and LLP(Last Liquid Point) were app lied, and reflected corporate bond spreads in the discount rate at DFL .(3) DL’s unrealized gains excluding those on yen-denominated fixed income assets (i.e. stocks, foreign bonds (excluding hedged bonds) and real estate etc.).(4) VIF of the Group plus unrealized gains on DL’s yen-denominated fixed assets as well as DFL’s and NFL’s assets etc. (after some adjustments).This item is mainly affected by interests rates thus the amount changes in VIF and unrealized gains on yen-denominated fixed income assets etc. based on changes in interest rate levels offset each other. (5) The sum of adjusted net worth of EEV for covered businesses and adjustments relating to net worth of non-covered businesses excluding unrealized gains. 25EEV of the Group (\ in billions)As ofMar-21As ofMar-22Change (\ in billions)As ofMar-21As ofMar-22Change Group EEV6,971.17,150.9+179.7 Group EEV6,971.17,150.9+179.7Covered Businesses6,997.17,200.0+202.8Unrealized gains on other assets(3)2,257.52,286.0+28.4Adjusted net worth6,962.26,035.8(926.3)Value of in-force business34.91,164.2+1,129.2(23.1)(49.1)(25.9)Adjustment related tonon-covered businessesNet worth, etc.plus retained earnings in liabilities(5)+39.32,235.12,195.7+111.92,629.82,517.8VIF plus unrealized gains onyen-denominated fixed income assets(4)905.3 829.3 931.0 1,051.3 1,278.5 1,409.4 1,524.5 1,770.7 1,922.6 1,976.2 2,195.7 2,235.1 1,365.2 1,583.2 1,643.9 2,093.8 2,675.6 1,879.0 2,400.8 2,416.2 2,218.5 2,214.0 2,517.8 2,629.8 169.6 248.9 766.9 1,149.5 2,033.5 1,357.5 1,570.0 1,907.1 1,795.2 1,431.6 2,257.5 2,286.0 2,440.3 2,661.5 3,341.9 4,294.7 5,987.6 4,646.1 5,495.4 6,094.1 5,936.5 5,621.9 6,971.1 7,150.9 02,0004,0006,0008,000Mar-11Mar-12Mar-13Mar-14Mar-15Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21Mar-22(Restated)(1)(¥in billions) (2)AfterstandardchangeReference Data26Dai-ichi Life’s Results –Quality of In-force Business, Sales Force & ProductivityANP based Surrender & Lapse (Individual Insurance & Annuities)Number of Sales Reps and Productivity(ANP based Surrender & Lapse / in-force business ANP at fiscal year start)Surrender & Lapse Rate(1) Calculated by dividing the value of gross sales revenue (an internal index of revenue of the sales force and is the value of new business excluding the effect associated with environmental changes) by the average number of sales representatives in each period (excluding sales reps less than 1 year in service).(2) The share of sales representatives with high customer consulting ability who meet prescribed qualification level. 27(2)(3)0.83%0.89%0.89%0.69%0.82%0.78%0.83%0.87%0.68%0.77%0.80%0.85%0.84%0.76%0.78%0.84%0.88%0.87%0.83%0.82%3.26%3.45%3.47%2.95%3.18%0%1%2%3%4%Mar-18Mar-19Mar-20Mar-21Mar-221Q2Q3Q4Q22.3%23.2%0%10%20%30%40%20,00025,00030,00035,00040,00045,000Mar-20Mar-21Mar-22[Reference] Total Life Plan Designers (including Life Professionals)1.000.630.80Share of highly efficientsales reps(2)VGSR per sales rep(1)(Indexed Mar-20 as 1.0)Dai-ichi Life’s Results – General Account Assets[1] Breakdown of Investment Income and ExpensesInterest and DividendsGains/Losses on Sale and Valuation of Securities(1) Ratio of interest and dividends to the average daily balance.(2) The daily balance of real estate held with investment purpose is used.28(\ in billions)FY2020FY2021Change（％）Interest and (cid:10)dividends836.5831.1(5.4)(1%)Domestic bonds272.9269.4(3.4)(1%)Domestic stocks60.074.4+14.3+ 24%Foreign securities332.2320.8(11.3)(3%)Other securities53.050.9(2.1)(4%)Loans39.138.8(0.2)(1%)Real estate73.771.1(2.5)(3%)[Reference] Rates of return as of FY2021(\ in billions)Interest anddividendsAveragedaily balanceReturn(1)General account total831.135,080.92.37%Domestic bonds269.416,666.51.62%Domestic stocks74.41,405.65.30%Foreign securities320.810,144.53.16%Other securities50.9874.85.82%Loans38.82,576.61.51%Real estate(2)71.1790.99.00%(\ in billions)FY2020FY2021Change（％）371.2351.1(20.1)(5%)Domestic bonds79.572.5(6.9)(9%)Domestic stocks145.7166.7+21.0+ 14%Foreign securities142.5108.8(33.7)(24%)Other securities3.42.9(0.5)(15%)125.3221.5+96.2+ 77%Domestic bonds0.522.4+21.8+ 3,929%Domestic stocks4.18.1+3.9+ 95%Foreign securities89.6162.2+72.5+ 81%Other securities31.028.8(2.1)(7%)Net gains or losses245.9129.5(116.4)(47%)1.28.4+7.1+ 560%Domestic bonds— -Domestic stocks1.24.9+3.6+ 283%Foreign securities0.01.7+1.7+ 35,507%Other securities-1.8+1.8 -Gains onsale of securitiesLosses onsale of securitiesLosses onvaluation of securitiesDai-ichi Life’s Results – General Account Assets[2] Investment Portfolio, Return and Average Assumed Rate of ReturnInvestment Portfolio （General Account）(1)Investment Yield & Ave. Assumed Rate of ReturnGeneral Account Asset Portfolio (¥ in trillions)35.434.935.637.837.4OthersReal estateForeign stocksDomestic stocksForeign-currencybonds (un-hedged)Foreign-currency bonds (hedged)Short-term rate investmentsLoansYenFixed Income74.4%Yen-denominatedbondsJPY and Currency-hedged Foreign Bonds (2)(1) Carrying amount – basis (2) Book value – basis2947.3%47.4%46.8%46.3%48.3%7.2%6.7%7.1%6.8%6.9%1.8%2.2%2.9%2.0%2.4%15.7%16.0%17.3%19.1%16.8%6.0%7.3%6.0%4.7%4.4%10.4%9.7%7.8%9.4%8.8%4.0%3.4%2.8%4.2%4.1%3.1%3.2%3.0%2.8%3.0%4.4%4.1%6.3%4.5%5.4%Mar-18Mar-19Mar-20Mar-21Mar-2212.0 11.9 12.2 13.3 14.2 4.2 4.0 3.9 3.7 3.4 5.25.15.46.76.121.521.121.523.823.80510152025Mar-18Mar-19Mar-20Mar-21Mar-22Policy-reserve-matching yen bonds (PRMB)Yen-denominated bonds other than PRMBHedged foreign bonds (available-for-sale)（¥in trillions）2.76%2.67%2.56%2.75%2.80%2.28%2.22%2.17%2.11%2.00%1.8%2.3%2.8%3.3%FY2017FY2018FY2019FY2020FY2021Investment yieldAve. Assumed rate of returnDai-ichi Life’s Results – General Account Assets[3] Yen-denominated Bonds and Foreign Currency BondsYen-denominated Bonds (1)Domestic Government Bonds (2) by Maturity (Mar-22)*Figures in brackets are as of March 31, 2021.Foreign Currency Bond Portfolio (2)(3) (Mar-22)Foreign Currency Bonds by Currency (2)*Figures in brackets are as of March 31, 2021.(1) Book value – basis(2) Carrying amount – basis(3) Rating breakdown based on ratings from S&P & Moody’s, excluding mortgage etc.3014.415.3 2.62.417.1 17.7 05101520Mar-21Mar-22Corporate bondsGovernment/Municipal bonds(¥in trillions)Government, municipal bonds50.3%Corporate bonds34.5%Mortgage, etc.15.2%[30.3%][50.4%][19.3%]As of Mar-22Foreignbonds¥7.9trillionAAA37.2%AA24.6%A22.8%BBB8.9%BB & Others0.0%No Rating6.5%[36.9%][25.5%][22.0%][10.2%][5.4%][0.0%]0.00.20.60.41.65.46.902468Up to1 year1-3years3-5years5-7years7-10years10-20yearsOver20 years(¥in trillions)[6.4][5.0][2.0][0.7][0.3][0.1][0.0]49.9%50.3%49.1%45.2%46.6%26.9%27.1%27.1%23.2%23.5%7.8%7.0%7.5%13.0%13.2%3.5%3.5%3.2%3.2%3.4%11.9%12.2%13.1%15.4%13.4%0%20%40%60%80%100%Mar-18Mar-19Mar-20Mar-21Mar-22OthersGBPAUDEURUSDDai-ichi Life’s Results – Measures of Financial SoundnessUnrealized Gains/Losses ＆ Solvency Margin RatioUnrealized Gains/Losses (General Account)Solvency Margin Ratio & Adjusted Net Assets(1) Sensitivities indicate the impact of fluctuations in the market value of related assets.(2) Breakeven points indicate assumptions when unrealized gains or losses of the related assets would be zero. Figures for foreig n securities are calculated for foreign exchange factors only, based on the JPY/US exchange rate 31(assuming all are in USD).(\ in billions)As ofMar-21As ofMar-22Change（％）Securities5,708.94,439.2(1,269.6) (22%)Domestic bonds2,596.01,804.2(791.8) (31%)Foreign bonds739.7378.7(360.9) (49%) o/w Hedged foreign currency bonds 508.5139.7(368.7) (73%)Domestic stocks2,111.31,961.9(149.3) (7%)Foreign stocks229.2256.8+ 27.5+ 12%Real estate356.2487.6+ 131.3+ 37%General Account total6,076.14,913.3(1,162.7) (19%)Sensitivities(1)Breakeven Points(2)10-year JGB Yield 10bp change:March 2022: ± \290bn*10-year JGB YieldMarch 2022: 0.8%*（March 2021: ± \290bn)(March 2021: 1.0%)* Available-for-sale securities:* Available-for-sale securities:March 2022: ± \20bnMarch 2022: 1.5%(March 2021: ± \20bn)(March 2021: 1.5%)Nikkei 225 1,000 yen change:March 2022: ± \110bnNikkei 225March 2022: \11,000(March 2021: ± \120bn)(March 2021: \11,700)JPY / USD 1 yen change:JPY / USDMarch 2022: ± \21bnMarch 2022: $1 = \107(March 2021: ± \24bn)(March 2021: \105)DomesticstocksDomesticbondsForeignSecurities9.59.89.39.68.3881.8%970.8%984.4%937.2%907.3%838.3%869.7%884.1%958.5%902.6%67891011120200%400%600%800%1,000%Mar-18Mar-19Mar-20Mar-21Mar-22Dai-ichi Life Adjusted Net AssetsDai-ichi Life Solvency Margin Ratio(Ref.) Dai-ichi Life Holdings Solvency Margin Ratio(¥in trillions)[Dai-ichi Frontier Life] Investment PortfolioInvestment Portfolio (General Account)(1)General Account Asset Portfolio (¥ in trillions)7.88.69.0Book Value / Market Value Information on Securities (Mar-22)Investment Amounts by Product Fund & Foreign Currency Bonds*Figures in brackets are as of March 31, 2021.(1) Carrying amount – basis(2) Includes structured bonds backed by government bonds and corporate bonds.3219.1%19.0%Domestic bonds18.5%59.3%53.7%Foreign bonds50.6%12.8%13.0%Money held in Trust11.9%2.3%2.1%Other securities1.9%3.4%9.1%Cash, deposits, and call loans11.7%3.1%3.1%Others5.4%Mar-20Mar-21Mar-22(\ in billion)BookValueMarketValueUnrealizedGains/LossesPolicy-reserve matching bonds3,593.23,610.8+17.5Securities available for sale2,829.72,817.6(12.1)Domestic bonds472.3475.8+3.5Foreign securities2,171.12,153.5(17.6)Other securities170.1172.2+2.0AUD w/MVA30.8%USD w/MVA38.3%JPY w/MVA15.7%Others15.2%[37.7%][38.4%][14.2%][9.7%]Government11.2%State/Munincipal3.2%Supranational 21.3%Corporate60.6%Others(2)3.6%Asof Mar-22Foreign bonds¥4.6tn[26.0%][10.3%][55.5%][4.3%][3.9%]Gains and Losses on Market Value Adjustment (MVA)▶ For products with MVA option, the J-GAAP liabilities are recognized as the greater of surrender value or the value of policy reserves determined by assumed interest rate. When interest rate decreases, the surrender value will be higher than the value of policy reserves, resulting in an accrual of MVA related policy reserves.▶ Gains/losses on MVA are offset on an accounting basis over time, therefore excluded from group adjusted profit calculation.Policy Reserves Accrual on MVAReversal of Policy Reserves Accrued on MVAInterest rate decrease≒ Accrue MVA related reservesAssuming flat interest rate after booking MVA related policy reserves,the amount of reserves is recalculated according to the market interest rate.Interest rate increase② Surrender value based on interest rate movementsAt booking MVA related reserves① Policy reserves determined byassumed interest rateReserves balanceReversal impactAtmaturityInvestment periodJ-GAAP liabilities at the end of each period are based on the higher of ① or ②. When interest rate decline and ②＞①, additional policy reserves are accrued.Over the investment period, accrued MVA policy reserves are reversed.(in case of surrender prior to maturitythe gain on sales of corresponding bonds is recorded)Accounting lossat time of booking reserves33dnuF ytiunnAStart of pension paymentimumerP egnSilAt contract start[PLC & TAL] Sales － Segment Sales PerformancePLC Sales PerformanceTAL Sales Performance(2)(3)* Change in in-force is due to renewal of insurance contract and premium adjustment etc.(1) Bank Owned Life Insurance (BOLI)/Company Owned Life Insurance (COLI) is a form of life insurance (usually UL or VUL) purchase d by banks/companies as funding mechanisms for employee retirement and benefit program liabilities, etc. From 1Q FY2021, BOLI/COLI sales recorded in the Retail Life & Annuity is disclosed separately. (2) From 1Q FY2020 the new business ANP calculation standard was changed, excluding changes in in-force policies that have been included in the past.(3) Following completion of integration process, from the third quarter of FY2021, sales of Asteron Life classified as individual and group insurance of TAL.34(AUD in millions)YoY（％）New Business ANP154151(2)(2%)(TAL) Individual7185+ 13+ 19%　　　　 Group7965(13)(17%)Asteron Life2-(2)-Change in in-force133464+ 331+ 249%(TAL) Individual128251+ 122+ 95%　　　　 Group(112)213+ 326-Asteron Life116-(116)-ChangeFY2020FY2021(USD in millions)YoY（％）Retail Life & Annuity2,9573,737＋780＋26% Traditional life261259(2)(1%)Universal life8497＋13＋15% BOLI/COLI(1)-1,033＋1,033-Fixed annuity2,2931,372(921)(40%)Variable annuity317976＋659＋208% Stable Value Products2,3284,335＋2,007＋86% Asset Protection498739＋241＋48% ChangeFY2021FY2020[PLC] Investment PortfolioInvestment Portfolio (General Account)(1)Commercial Mortgage LoansTotal Investments (USD in billions)84.66.7%0.7%11.1%88.75.9%0.8%11.3%91.0Others6.7%EquitySecurities1.0%Commercial Mortgage Loans11.9%81.6%82.0%Fixed Maturities80.4%Fixed Income Allocation and Credit Quality*Figures in brackets are as of Dec 31, 2020.Others0.4%[0.3%]US Gov., etc.8.4%[9.7%]RMBS/CMBS, etc.15.1%[15.6%](As of Dec.2021)Fixed income assets$73.2bnBBB43.0%[39.4%]Below BB3.4%[3.8%]AAA & AA22.2%[23.2%]Dec-2019Dec-2020Dec-2021(1) Carrying amount – basisCorporate76.1%[74.4%]A31.4%[33.6%]35(USD in millions)Dec-2020Dec-2021ChangeMortgage Loans (Gross)10,22710,966＋738o/w Non-performing2-(2)222103(119)(% of Mortgage loans)2.2%0.9%(1.23%pt)Allowance for credit losses[As disclosed on November 12, 2021]FY2021 Group Adjusted Profit and Value of New Business Revised Forecast▶ Group adjusted profit full-year forecast has been revised upward to approx. ¥270 billion, taking into account additional reinsurance ceding based on the improvement of investment income at DL and one-time expense at DFL in 2HY.Net income has been revised upward to ¥349 billion, reflecting the expected increase in deferred tax assets at the end of this fiscal year in line with the introduction of Group Tax Sharing System, which is under consideration for implementation from the next fiscal year. (In addition, on the premise of the introduction, DFL will cancel part of coinsurance type reinsurance (surplus relief) from the viewpoint of capital efficiency with one-time expense.)▶ Group VNB has been revised downward to approx. ¥119 billion based on the 1HY results.Group Adjusted Profit Revised Forecast Change DriversVNB Revised Forecast Change Drivers(¥ in billions)(－) Additional reinsurance ceding expense(non-recurrent losses approx. ¥26.0bn) etc.(＋) Group tax sharing system +¥38bn(＋) DFL MVA related gains approx.+¥40bn(no change from initial forecast) etc.(¥ in billions)(－) DL:Increase of conversion policies in 1Q (with lower additional VNB impact)(－) DFL: Difference in assumption for corporate bondspread compared to initial forecast (＋) NFL: Steady increase in sales of medical insurance, etc.(+) Mainly positive spread etc.(＋) Gains on sale of securities(－) Surplus relief cancellation one-time expense of approx. ¥20.0bn etc.(＋) Reversal of allowance on CECL etc.Domestic +¥16bnOverseas +¥15bn[Revised]349.0[Previous]approx.159.0[Revised]approx.270.0Adj.GroupAdjusted ProfitConsolidatedNet IncomeDLFundamental Profit(1)DLCapital, etc.(1)DFL/NFLPLCTALOther OverseasAssetManagement,etc.(Change from Group Adjusted Profit)DLDFL/NFLOther Overseas(250.0)3.046.010.013.0+79.0349.063.524.531.0(224.0)11.031.010.013.0+39.0279.089.039.031.01.01.0approx.270.0approx.240.0(1) Fundamental profit before tax. “DL Capital etc.” includes changes in corporate tax, net capital and non-recurrent gains(losses).[Previous]approx.240.0GroupAdjusted ProfitRevisedForecastInitialForecastapprox.450.0approx.400.0[Revised]approx. 119.0approx.119.0approx.159.036[As disclosed on November 12, 2021]Impact of Group Tax Sharing System Introduction▶ Plan to introduce Group Tax Sharing System in Japan from the next fiscal year (FY2022) in order to optimize group tax expenses and improve tax governance of our domestic group companies. (subject to approval by tax authorities)▶ This system allows recoverability assessment of deferred tax assets of domestic subsidiaries on a group basis. Upon introduct ion at the end of FY2021, additional deferred tax assets are expected to be recorded, which will increase net assets and net income by approx. ¥38 billion (excluded from group adjusted profit). From the next fiscal year onward, since the taxable income and tax losses within the group can be aggregate d, overall tax expense is expected to decrease compared to the current non-consolidated tax payment through each subsidiaries (included in group adjusted profit).▶ On the premise of the introduction, DFL will cancel a part of coinsurance type reinsurance contracts (surplus relief) due to an improvement in financial soundness through an increase in net assets by additional deferred tax assets. Although cancellation will result in one -time expense of approx. ¥20 billion in current fiscal year, a certain improvement in profit will be expected from the next fiscal year onward (included i n group adjusted profit).Group Tax Sharing System IntroductionPartial Cancellation of Surplus Relief Reinsurance at DFL[Implementation]FY2022 (the next fiscal year)*Subject to approval by tax authorities[Scope of application] Dai-ichi Life Holdings, inc. and 100%-owned domestic subsidiaries (16 companies in total)[Impact]In FY2021 Recoverability of deferred tax assets which has been unrecognized can be assessed on a group basis, resulting in an increase in deferred tax assets and net assets.[Consolidated net income /net assets]approx. ¥38 billion increase expected (mainly at DFL) * Excluded from group adjusted profitFY2021 Consolidated ImpactFrom FY2022AssetsLiabilities[Surplus Relief Reinsurance Overview] Reinsurance contracts to reduce the risk of uncollected new business acquisition cost (effect of leveling the burden ofacquisition cost) Amortized over the term of the policyfrom the first year onward[Impact] * Included in group adjusted profitIn FY2021 Improvement in financial soundness Ceding commission income(First Year)New business acquisitioncost(First Year)Surplus relief and new business acquisition costScheduled partial cancellation(one-time depreciation of unamortized balance)Recover acquisition costthrough insurance incomeFirst year commission amortised(≒ reinsurance premium payment)through an increase in net assets on the premise of the introduction of Group TaxSharing System DFL will cancel a part of surplus relief reinsurance contracts by the end of this fiscal year. *Subject to agreement by reinsurance companyNet assets Unamortized balances will be written-off as a one-time expense.[Group adjusted profit/Net Income/Net Assets]Decrease of approx. ¥20 billionDeferred tax assetsRetained earningsIncreaseIncreaseFrom FY2022 A certain improvement in profit is expected from the next fiscal year onward due to decrease of amortization (≒ reinsurance premium payment including risk charge).37 Since the taxable income and tax losses within the group can be aggregated, overall tax expenses is expected to decrease compared to the current non-consolidated tax payment through each subsidiaries * Included in group adjusted profitGroup Adjusted Profit38（\ in billions)ItemsFY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021Domestic Life Insurance BusinessDai-ichi LifeNet income151