Earnings

In fiscal 2015, ordinary profit and profit attributable to owners of parent both decreased year on year.

Ordinary Profit / Profit Attributable to Owners of Parent (Consolidated)

Ordinary profit decreased ¥17.5 billion year on year to ¥171.4 billion. Profit attributable to owners of parent decreased ¥21.6 billion year on year to ¥72.5 billion. The increase in profit attributable to owners of parent mainly reflected the provision of ¥15.0 billion in additional reserves in excess of the legal standard requirements for the reserve for price fluctuations, as well as a lump-sum provision for reserve for employees' retirement benefits in connection with the decline in domestic interest rates.

Core Profit

Core profit for the three life insurance companies decreased ¥29.6 billion year on year to ¥153.0 billion.

The core profit of Taiyo Life decreased by ¥14.3 billion to ¥53.8 billion. This was mainly due to an increase in provision for reserve for employees' retirement benefits and a decrease in insurance premium income from single premium products.

The core profit of Daido Life decreased by ¥2.8 billion to ¥104.8 billion. This was mainly due to an increase in provision for reserve for employees' retirement benefits in connection with the decline in domestic interest rates.

The core profit of T&D Financial Life decreased by ¥12.4 billion to a loss of ¥5.5 billion. This was mainly due to a decrease in the reversal of policy reserves related to the minimum guarantee risks of individual variable annuities.

The positive spread for the three life insurance companies increased by ¥5.6 billion year on year to ¥40.2 billion.

Fiscal 2016 Forecasts

Ordinary profit is projected to decrease by 4.3% to ¥164.0 billion, mainly based on an anticipated decline in interest, dividends, and income from real estate for rent, and a decrease in net gains on sales of securities. Profit attributable to owners of parent is projected to remain mostly unchanged at ¥73.0 billion.

Further, considering that Daido Life and Taiyo Life are planning to make additional provisions in excess of the legal standard requirements for the reserve for price fluctuations of ¥8.0 billion and ¥15.0 billion, respectively, adjusted net income, which represents profit available for shareholder returns, is forecast to increase 6.8% to ¥89.0 billion.

Fiscal 2016 Forecasts

• *1 Adjusted net income is calculated by adding net income and additional internal reserves in excess of the legal standard requirements related to reserves for contingency and price fluctuations (after taxes).
• *2 Figures disclosed for reference.

Fiscal 2016 Policy Results Forecasts (For Reference)