Company Presentation (including FY2004 Interim Earnings) 6 December - - PowerPoint PPT Presentation

6 December 2004 For the attention of our Investors / Analysts

(including FY2004 Interim Earnings)

Company Presentation

• I. FY2004 Interim Earnings Summary

FY2004 Interim Earnings Data Data (Attachment)

• 1. Key Points
• 2. Premium Income
• 3. Claims
• 4. Catastrophe Reserves
• 5. Operating Expenses
• 6. Asset Management
• 7. Capital

Ref: Fortress Re aviation reinsurance data

• 8. Aioi Life - Key Points of Interim Performance
• III. 2H Initiatives in Key Areas
• 1. Securing growth
• 2. Enhancing productivity/efficiency
• 3. Expanding group income

CONTENTS

P1 P2 P3 P5 P6 P7 P8 P9 P10 P12 P17 P18

• II. FY2004 Earnings Forecast
• 1. Key Points

P11

• I. FY2004 Interim Earnings Summary
• I. FY2004 Interim Earnings Summary

• 1. Key Points
• 1. Key Points

1

• I. FY2004 Interim Earnings Summary

(Billion yen, %)

NB: The net loss ratio includes loss adjusting expenses

[Lower line excludes special factors]

◆ Net profit posted in first half, offsetting the impact of major natural disasters and the early adoption of fixed asset impairment accounting

NB: Excl. special factors = excl. the impact of abolition of the state CALI reinsurance scheme and Fortress Re issue

Change +/- % 419.2 416.3

• 2.8
• 0.7

382.5 380.7

• 1.8
• 0.5

222.3 230.4 8.0 3.6 200.3 197.6

• 2.6
• 1.3

138.0 134.2

• 3.8
• 2.8

137.8 134.2

• 3.6
• 2.6

13.2

• 9.2
• 22.5
• 170.1

14.0 19.2 5.1 36.6 23.0 7.2

• 15.8
• 68.7
• 1.6

1.5

• Extraordinary Profit

0.7 9.4 8.7

• Extraordinary Loss

2.3 9.5 7.1 298.2 9.0 5.1

• 3.9
• 43.4

57.5 59.6 2.1P 57.3 56.6

• 0.7P

32.9 32.2

• 0.7P

36.0 35.3

• 0.7P

90.4 91.9 1.5P 93.3 91.8

• 1.5P

30 Sep 2003 30 Sep 2004 Net Premiums Net Claims Net Operating Expenses Underwriting Profit

Asset Management Profit/Loss

Ordinary Profit Combined ratio Extraordinary Profit/Loss Interim Net Profit Net loss ratio Net expense ratio

• 2. Premium Income (1) Premiums by Class
• 2. Premium Income (1) Premiums by Class

2

• I. FY2004 Interim Earnings Summary

(Billion yen, %)

[Excl. special factors]

■ Net Premiums by Class

(* operating result basis)

Fire Long-term fire +¥900MN Reduction in outward R/I premiums +¥1.7BN P.A. 3rd Sector +¥900MN Savings-type P.A.

• ¥500MN

Motor Downturn in unit prices -¥5.8BN* Reduction in overseas inward R/I premiums

• ¥2.4BN

Other Liability +¥1.6BN Amount +/- % Amount Change +/- % Fire 39.4 0.8 41.7 2.3 6.0 Marine 2.5 0.8 2.5 0.0 2.8 P.A. 24.9

• 5.3

25.2 0.2 1.1 Motor 238.7

• 2.6

231.4

• 7.2
• 3.0

CALI 44.0 4.0 44.4 0.4 1.0 Other 32.8

• 7.5

35.1 2.3 7.0 TOTAL 382.5

• 2.1

380.7

• 1.8
• 0.5

Class 30-Sep-03 30-Sep-04

• 2. Premium Income (2) Premium Result
• 2. Premium Income (2) Premium Result

◆ Last year’s domestic operating result maintained ◆ Higher income in all classes, except motor ◆ Increase in number of cars insured, but significant impact from fall in unit prices

3

• I. FY2004 Interim Earnings Summary

(Billion yen, %)

■ Operating Result by Class ■ Operating Result by Channel

◆ Solid increase in Toyota Group and Motor income ◆Smaller reduction in income in the pro channel

Amount +/- % Amount Change +/- % Fire 42.2 4.2 43.6 1.4 3.5 Marine 4.3 0.8 4.4 0.1 0.2 P.A. 20.7 1.5 22.3 1.6 5.4 Motor 237.9

• 1.9

233.3

• 4.6
• 1.9

CALI 70.2 1.4 70.6 0.4 0.6 Other 35.3

• 5.0

36.9 1.6 4.3 TOTAL 410.8

• 0.8

411.2 0.4 0.0 Class 30-Sep-03 30-Sep-04

Amount +/- % Amount Change +/- % 147.3

• 2.1

145.1

• 2.1
• 1.4

81.6 0.6 82.2 0.7 0.8 84.2 5.5 86.7 2.5 2.9 Toyota Gp outlets 74.0 3.9 74.6 0.6 0.8

• /w Toyota Gp cos

10.1 17.8 12.1 2.0 19.9 15.0

• 11.2

13.7

• 1.2
• 8.2

42.6 0.7 42.6 0.0 0.1 14.8

• 7.0

14.9 0.1 0.5

• /w bancassurance

2.4 34.8 2.1

• 0.3
• 11.7

25.5

• 8.9

26.0 0.5 1.8 410.8

• 0.8

411.2 0.4 0.0 Financial Other TOTAL Motor Other dealers Corporates Toyota Group Channel 30-Sep-03 30-Sep-04 Pro

(Billion yen, %)

• 3. Claims
• 3. Claims

4

• I. FY2004 Interim Earnings Summary

■ Net Claims / Loss Ratio Trend

(Japan; excl. loss adjusting costs)

◆ 0.7-point improvement in overall loss ratio due to reduction in overseas inward reinsurance contracts etc.

■ Natural Disasters

(Billion yen)

◆1.4-point deterioration due to the impact

• f major natural disasters, but only a 0.4-

point rise excluding this impact, i.e. the ratio remains stable

■ Motor E/I Loss Ratio

(Billion yen, %) [Excl. special factors]

57.6 54.6 54.8 54.4 55.8 54.8

50.0 52.0 54.0 56.0 58.0 60.0

（%）

• Excl. major

natural disasters

30/9/2002 FY2002 30/9/2003 FY2003 30/9/2004

Claims Paid Loss ratio Claims paid Loss ratio +/- % Fire 16.8 44.7 16.8 42.4

• 2.3P

Marine 2.1 90.1 1.2 50.9

• 39.2P

P.A. 8.5 39.2 8.0 35.5

• 3.7P

Motor 125.5 57.2 126.2 59.2 2.0P CALI 25.1 65.8 23.6 61.8

• 4.0P

Other 22.0 73.0 21.5 65.3

• 7.7P

TOTAL 200.3 57.3 197.6 56.6

• 0.7P

30-Sep-03 30-Sep-04

Direct Net 30.7 21.1 Claims paid 6.5 6.3 Outstanding loss reserve 24.1 14.7 30-Sep-04 Incurred Loss

82.6% 138.6% 90.7% 88.9% 96.6%100.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% IOI

• Co. A
• Co. B
• Co. C
• Co. D
• Co. E

20.2% 24.1% 22.6% 15.4% 21.7% 17.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 54.8% 64.2% 59.1% 55.4% 43.4% 48.5% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0%

• 4. Catastrophe Reserves
• 4. Catastrophe Reserves

5

• I. FY2004 Interim Earnings Summary

■ Reserves by Class ■ Reserve Ratio by Class: Comparison with Competitors

◆ Rise in reserve ratio across all classes,

• excl. P.A.

◆ Reserve transfer rate for fire amended to 5.8% (raised from 3.8% last FY)

(Billion yen, %)

◆ The reserve ratios for fire, motor and P.A. – weighted highly within premium income – stand comparison with the other classes ◆ The outwardly low overall reserve ratio is due to the high weighting of motor

Fire Motor P.A. (30/9/2004)

IOI

• Co. A
• Co. B
• Co. C
• Co. D
• Co. E

IOI

• Co. A
• Co. B
• Co. C
• Co. D
• Co. E

Amount Ratio Amount Ratio +/- % Fire 65.5 79.7 67.8 82.6 2.9P Marine 3.3 64.2 3.4 66.5 2.3P P.A. 26.9 54.9 27.7 54.8

• 0.1P

Motor 84.2 17.9 93.3 20.2 2.3P Other 14.0 19.2 15.4 21.0 1.8P 31-Mar-04 30-Sep-04

• 5. Operating Expenses
• 5. Operating Expenses

6

• I. FY2004 Interim Earnings Summary

■ Operating Expense Reduction

(Billion yen, %) [Excl. special factors]

◆ ¥3.6BN YoY reduction in net operating expenses thanks to ongoing efforts to achieve efficiencies ◆ Net expense ratio has also steadily fallen YoY, offsetting the impact of lower premiums

NB: Non-personnel expenses include donations/burden charges/taxes

38.7 35.1 34.8 33.3 31.8 30.2 35.3 37.6 36.0

10 20 30 40 50 60 70 80

30/9/2002 30/9/2003 30/9/2004

34.0 34.5 35.0 35.5 36.0 36.5 37.0 37.5 38.0

Non-personnel Personnel

Net expense ratio

Steady fall in expense ratio

(Billion yen)

（%）

Change +/- % 35.1 34.8

• 0.2
• 0.8

31.8 30.2

• 1.5
• 4.9

66.9 65.1

• 1.8
• 2.8

70.9 69.1

• 1.7
• 2.5

137.8 134.2

• 3.6
• 2.6

36.0% 35.3%

• 0.7P

Net expense ratio 30 Sep 2004 Net operating costs 30 Sep 2003 Personnel Non-Personnel SG&A expenses relating to underwriting

Commissions and collection costs

• 6. Asset Management
• 6. Asset Management

7

■ Asset Management Profit/Loss

• I. FY2004 Interim Earnings Summary

(Billion yen)

■ Early Adoption of Fixed Asset Impairment Accounting

(Billion yen)

< Impairment losses by asset group >

◆ Early adoption from this term with a view to ensuring asset soundness ◆ ¥8.4BN in impairment losses posted as extraordinary loss ◆ ¥5.1BN YoY improvement in profit on assets managed ◆ ¥2.4BN improvement in interest/ dividend income, in spite of continued low-interest environment ◆ ¥6.4BN increase in realized gains

• n marketable securities due to the

sale of strategic holdings etc.

30 Sep 2003 30 Sep 2004 Change

14.0 19.2 5.1

Interest and dividend income 19.1 21.5 2.4 Gain on sale of marketable securities 3.5 9.9 6.4 Valuation gain on marketable securities 1.1 1.3 0.2 Other profit/loss on assets managed 3.1

• 0.5
• 3.7

Transfer to profit, incl. reserve premiums

• 10.6
• 10.3

0.2

Asset management profit/loss

Land Buildings Rental assets 4.7 3.2 Idle and other assets 0.2 0.1 TOTAL 5.0 3.4

• 7. Capital
• 7. Capital

8 (Billion yen)

■ Unrealised Gains/Losses on Securities ■ Reduction of Strategic Shareholdings (Book value basis)

(Billion yen) (Billion yen)

• I. FY2004 Interim Earnings Summary

◆ Solvency margin fell by only 17.8 points, in spite of lower unrealised stock profits, and remains at an adequate level ◆ Lower unrealised profits on strategic shareholdings ■ Solvency Margin ◆Sale of strategic share- holdings promoted in 2H with a view to achieving the target

• f ¥40BN in sale value

NB: Reduction and Balance figures are after adjustment for impairment Change Total assets 2,569.9 2,597.8 2,564.4

• 33.4

Equity capital 375.4 446.8 414.1

• 32.6

Catastrophe reserves 198.0 194.2 207.6 13.4 Solvency margin 798.8% 910.1% 892.3%

• 17.8P

FY2003 30 Sep 2003 30 Sep 2004

Change Gvt & Corp Bonds 2.4 3.6 2.2

• 1.3

Shares 139.7 223.8 172.3

• 51.5

Overseas securities

• 16.3
• 14.9
• 7.4

7.5 Other 0.1 5.7 1.3

• 4.3

TOTAL 126.0 218.3 168.5

• 49.8

30 Sep 2003 30 Sep 2004 FY2003 30 Sep 2003 FY2003 30 Sep 2004 Reduction 29.5 96.8 3.7 Balance 435.3 368.9 365.2

■ Claims Payments

(Billion yen)

141 61 1 10 20 30 40

Jan 2001 Jan 2002 Jan 2003 Jan 2004

¥BN FY2001 FY 2002 FY2003 FY2004 FY2005

Claims estimate Inward R/I contracts

◆An international auditor regularly examines claims estimates ◆ Steady progress on claims payments ◆ Settlement agreed with Fortress Re and its Directors

○ ¥8.5BN in settlement booked as extraordinary profit

Ref: Fortress Re Aviation Reinsurance Data Ref: Fortress Re Aviation Reinsurance Data

9

• I. FY2004 Interim Earnings Summary

FY2001 FY2002 FY2003 30 Sep 2004 Claims Paid 32.2 36.2 38.9 16.1 Outstanding Reserve 116.7 88.4 61.6 52.9

10

• 8. Aioi Life - Key Points of Interim Performance
• 8. Aioi Life - Key Points of Interim Performance
• I. FY2004 Interim Earnings Summary

New personal policies New personal policies Personal policies in force Personal policies in force

Premium and other income

Asset management profit Claims and other payments Asset management costs

Total Assets 29,628

(Units: million yen, %)

29,740 1,617 1,892 9,148 9,961 1 73 180,412 210,846 111 274 813 71 30,433 16.9 － 8.9 17.0 0.4 30 Sep 2003

New policy total Personal / pensions

Group / group pensions

Policies in force Personal / pensions

Group / group pensions

30 Sep 2004 Change +/- % 402.0 113.2 28.2 367.0 34.9 448.1 67.1 3,945.4 4,493.7 3,201.9 3,617.2 743.4 876.5 81.0 32.1 548.3 415.2 133.0 13.9 13.0 17.9

(Units: billion yen, %)

515.3 92.0 22.1 NB: Real 1H net profit if no increase had been made: ¥955MN

Solvency Margin %

1,951.9 1,891.7

• 60.2P

335.1 367.0 448.1 250 300 350 400 450 500 FY2002 30 Sep FY2003 30 Sep FY2004 30 Sep

(Billion yen)

+22.1% YoY +13.0% YoY

2,916.0 3,201.9 3,617.2 2,000 2,500 3,000 3,500 4,000 FY2002 Sep FY2003 Sep FY2004 Sep

(Billion yen)

◆ Reserves increased by ¥950MN in order to achieve statutory level

■ Steady growth in policies in force

• II. FY2004 Earnings Forecast
• II. FY2004 Earnings Forecast

11

• II. FY2004 Earnings Forecast
• 1. Key Points
• 1. Key Points

[Lower line excludes special factors] (Billion yen, %)

NB: The net loss ratio includes loss adjusting expenses

◆ Draw-down of catastrophe reserves absorbs the impact of major natural disasters, ensuring an estimated ¥17.0bn in net profit for the period Change +/- % 836.5 828.0

• 8.5
• 1.0

758.2 758.3 0.0 0.0 471.4 501.9 30.4 6.4 417.3 432.1 14.7 3.5 279.8 274.9

• 4.9
• 1.8

279.5 274.8

• 4.7
• 1.7

13.0 1.5

• 11.5
• 88.5

41.5 32.0

• 9.5
• 23.0

45.3 27.0

• 18.3
• 40.4

27.3 17.0

• 10.3
• 37.8

60.8 65.0 4.2P 59.9 61.8 1.9P 33.5 33.2

• 0.3P

36.9 36.2

• 0.7P

94.3 98.2 3.9P 96.8 98.1 1.3P

FY2003 FY2004 Est Net Premiums Net Claims Net Operating Expenses Underwriting Profit

Asset Management Profit/Loss

Ordinary Profit Combined ratio Net Profit for the period Net loss ratio Net expense ratio

• III. 2H Initiatives in Key Areas
• III. 2H Initiatives in Key Areas

• 1. Securing Growth (1) Product Strategy
• 1. Securing Growth (1) Product Strategy
• III. 2H Initiatives in Key Areas

12

(1) Motor insurance strategy

Expanded coverage

• Speedy accident resolution -

Expanded coverage

• Speedy accident resolution -

Personal accident compensation rider for pedestrians etc. (Oct 2004)

< Pays out for the portion of fault attributable to the victim = aids the vulnerable party >

Personal accident compensation rider for pedestrians etc. (Oct 2004)

< Pays out for the portion of fault attributable to the victim = aids the vulnerable party > Sector first

Packaging of various riders according to need

• Supports agency sales growth -

Packaging of various riders according to need

• Supports agency sales growth -

New fixed plan ‘Top Run Easy’ (Oct 2004) < Rider package, simplified renewal, cashless > New fixed plan ‘Top Run Easy’ (Oct 2004) < Rider package, simplified renewal, cashless > New

◆New customers gained as a result of further coverage enhancements ◆Unit prices boosted by switching existing customers to Top Run and adding riders

A step ahead in motor insurance

Increase in motor insurance income achieved by encouraging existing customers to switch and by gaining new customers

• 1. Securing Growth (1) Product Strategy
• 1. Securing Growth (1) Product Strategy

■ Expanded sales of personal insurance, primarily Health Comprehensive Insurance Health Club

• III. 2H Initiatives in Key Areas

(2) Personal insurance strategy

Pro Corp/Fin Dealers Motor

Personal insurance sales channel expansion Support/guidance from Personal Insurance Specialists

Introduction

• f QLIC staff

■ All-out promotion of ‘Platform products’ in order to strengthen multi-product sales

(3) Platform strategy

Home Comprehensive Traders Comprehensive

Construction Comprehensive

Personal market Small-mid co. market Construction market Transportation market

◆ Highest level of coverage for the transportation sector ◆ Introduction of discount system, reflecting ‘safety’, ‘environment’ ◆ ◆ Highest level of coverage for the Highest level of coverage for the transportation sector transportation sector ◆ ◆ Introduction of discount system, reflecting Introduction of discount system, reflecting ‘ ‘safety safety’ ’, , ‘ ‘environment environment’ ’

Transportation Comprehensive

(Dec 2004)

Transportation Comprehensive

(Dec 2004)

New Change +/- % ¥1.1BN 5.4% 3rd Sector ¥800MN 21.8%

Personal insurance

30-Sep-04 Change Increase Home Comp ¥400MN 8.6% Traders Comp ¥200MN 54.5% Construction Comp ¥400MN 21.1% 30-Sep-04

13

• 1. Securing Growth (2) Channel / Market Strategy
• 1. Securing Growth (2) Channel / Market Strategy

14

• III. 2H Initiatives in Key Areas

■ Further efforts to boost revenues

(1) Toyota market strategy

◆Proactive proposals on reorganizing Toyota sales channel ◆Acceleration of insurance business enhancement activities ◆Utilization of dealer ranking system and follow-up programme ◆Steady share building in Toyota Group property/ group insurance markets ◆Expanded selling of ‘long-term fire insurance with housing loan’ for Toyota Home customers

Product development with Toyota Product development with Toyota Support to outlets to raise income Support to outlets to raise income Expand business with Group companies Expand business with Group companies

■ Expansion of business with group sales outlets promoted

Telematics/ITS-supported motor insurance ‘P A Y D’ Life cover for TS CUBIC CARD members ‘Zutto Luck’ New

■ Steady growth in sales of jointly developed products

* Sales commenced Jul 2003

30 Sep 2003 30 Sep 2004 Increase Group sales outlets ¥74.0BN ¥74.6BN 0.8% Group cos. ¥10.1BN ¥12.1BN 19.9% TOTAL ¥84.2BN ¥86.7BN 2.9%

Policies Premiums Policies Premiums Increase Convini Plan 23,000 ¥2.4BN 25,000 ¥2.6BN 6.4% Nagaraku Plan* 3,000 ¥300MN 10,000 ¥1.0BN 212.0% 30-Sep-03 30-Sep-04 FY2001 FY2002 FY2003 30 Sep 2004 New partner outlets 98 80 96 48 New outlets (IOI coinsurer) 19 10 8 5 New outlets (IOI leader) 4 1 2 2

◆Develop products allied to Toyota’s advanced technology, financing operations

■ Shift in the handling of ‘fire insurance with housing loan’ from banks to the housing

industry, where contact with the customer occurs at an earlier stage

Increase in revenues achieved by promoting alliances with the housing industry channel and regional financial institutions, where IOI has a significant share ‘Bancassurance’ channel

◆ Weak housing loan growth results in negative YoY sales growth ◆ Alliances with regional financial institutions ○ ‘Housing industry seminars’ held jointly with financial institutions, thereby cultivating the housing industry ◆ Steady increase in revenues offsets banc- assurance decrease

• 1. Securing Growth (2) Channel / Market Strategy
• 1. Securing Growth (2) Channel / Market Strategy

15

• III. 2H Initiatives in Key Areas

(2) Strategy for ‘fire insurance with housing loan’ market

◆ Cultivation of regional financial institutions based on unique IOI strategy ○ Tie-up with housing industry channel ○ Positive responses from regional fin. institutions ‘Small Loan Credit Insurance for Small/Mid- size Companies’ provided ○ Life: promotion of ‘non-selective pensions’, ‘Group Credit Life Insurance with Cancer Benefit’ Regional Info Network

‘Housing industry’ channel

20 40 60 80 100 30/9/2003 30/9/2004

¥2.4BN ¥2.1BN

20 40 60 80 100 30/9/2003 30/9/2004

¥6.5BN ¥8.0BN

• 1. Securing Growth (2) Channel / Market Strategy
• 1. Securing Growth (2) Channel / Market Strategy

16

• III. 2H Initiatives in Key Areas

◆ Cultivate small-midsize business/retiree market by expanding sales channels / strengthening

product features (utilizing alliances) and through the regional information network

(3) Small-midsize business market strategy

Core Markets Channel Gateway Retirees Small-Midsize Businesses

IOI

AXA Life

Nomura Securities Gp

＋

Existing channel Existing products/services/features Feature tie-up Sales tie-up Expand sales channel

Strengthen features

401k Sales staff 6,000

Chamber of Commerce ・ CCI

＋

IOI Club IOI Club (Inc)

Regional Info Network

• IOI insurance products
• Toyota Asset Inv. Trust
• Nomura Asset Inv. Trust
• Other financial products

• 2. Enhancing Productivity/Efficiency
• 2. Enhancing Productivity/Efficiency

Mobile POS system

< Trial < Trial ⇒ ⇒ Roll Roll-

• Out >

Out >

Contracting agency

17

Dedicated agency system ‘IONOS’

Web-based agency system ‘I-BROAD’

Pro sales section Sales centre ◆ Reform sales outlets

Cooperating agency

◆ Reform channel structure Non-independent agent

■ Drastically enhance productivity/efficiency through reform of the business structure

• III. 2H Initiatives in Key Areas

◆ Administrative reform

Outsource corp. administration

Umbrella agency Bring in Administrative promotion centre ‘Tri-Function’ Sales Structure

◆ Equip agency system

IONOS

Boost sales power / streamline costs Boost sales power / streamline costs

Dedicated sales guidance Dedicated admin. guidance Dedicated management

Direct accounting Cashless Daily settlement New Paperless

30-Sep-04 FY2004 Target Contracting 1,495 2,000 Cooperating 103 250 Umbrella 9 50 Oct 2004 FY2004 Target Pro sales sections 5 11 Admin prom center 6 14 Sales centers/teams 66 78

• 3. Expanding Group Income (1) Aggressive Expansion of Overseas Business
• 3. Expanding Group Income (1) Aggressive Expansion of Overseas Business

Thai China

EUR Jan 2005: launch of Aioi Motor and General Insurance Company of Europe

• Promote F&I business and general

insurance aimed at Japanese companies -

FY2004: 5-office structure (open 2 offices) FY2005: Establish direct business structure through new branches

Investment in local non-life insurer; reorganization into Bangkok Aioi in Jan 2005, promoting F&I business

AUS

• III. 2H Initiatives in Key Areas

■ Toyota global strategy and associated F&I business developing smoothly ■ Strengthen the F&I operation in the Asian market and invest opportunistically in China

18

◆ Local direct premium income

Promote F&I business in alliance with IAG

IAG: Australia’s leading general insurance company

2004年度 2003年度 (Billion yen) 30 Sep 31/3 Target 30 Sep 31 Mar FY2003 FY2004

11.6 24.0

14.8 28.0

5 10 15 20 25 30 35

Enhance customer service and strengthen measures to prevent lapses/cancellations Enhance customer service and strengthen measures to prevent lapses/cancellations

Expand line-up of unique products to meet needs of customers/channels Expand line-up of unique products to meet needs of customers/channels

• Feb 2004: Launch of ‘Group Credit Life Insurance with Cancer Benefit’ for financial institutions
• Jun 2004: Launch of package product ‘New Income Guarantee Insurance Just One’ combining income and

medical guarantee

• Nov 2004: Launch of ‘Zutto Luck’ dedicated credit card payment product for TS CUBIC CARD members
• Strengthen policy retention structure through establishment of Customer Service Centre (Apr 2004)

Full-scale roll-out of ‘Direct Policy Amendment Service’

■ Accelerate increase in statutory reserves ■ Grow Embedded Value

• 3. Expanding Group Income (2) Life Insurance Business
• 3. Expanding Group Income (2) Life Insurance Business

New policy total

(Personal/Pensions)

Policies in force

Personal/pensions Group/gp pensions

448.1 3,617.2 876.4 4,493.6 970.0 3,920.0 850.0 4,780.0 Sep 2004 FY2004

• III. 2H Initiatives in Key Areas

19

New

(Billion yen)

Contact Point for Enquiries

Ebisu 1-28-1, Shibuya-ku, Tokyo 150-8488 Tel: +81 (3) 5789-7135 Fax: +81 (3) 5489-6465 E-mail： kazuhiro-narita@ioi-sonpo.co.jp

Corporate Planning Division – IR Group

This presentation contains statements relating to future performance, which entail certain risks and uncertainties. You should bear in mind that future performance, management policy or strategy could be subject to alteration or fluctuation due to changes in the external environment.