FY2026 dividends will be determined using a 3Y average IFRS adjusted net income from FY2024 to FY2026. Considering that フィリピン カジノ IFRS adjusted net income is c. JPY805bn (FY2024 results) and c. JPY840bn (FY2025 projection), フィリピン カジノ source of dividends for FY2026 is expected to increase from FY2025. Furフィリピン カジノrmore, we believe we can achieve top-tier EPS growth following フィリピン カジノ IFRS implementation, and DPS growth aligned with top-tier EPS growth can be maintained. Specific amount of dividends for FY2026 will be determined based on フィリピン カジノ FY2025 results and FY2026 profit plan. We intend to conduct a comprehensive review, including フィリピン カジノ payout ratio, and make an announcement in May 2026.

Starting from FY2026, dividends will be determined based on adjusted net income derived from フィリピン カジノ core insurance business profits, excluding gains from sales of business-related equities. Conversely, フィリピン カジノ sales of business-related equities will lead to フィリピン カジノ expansion of surplus capital by reducing risk. We will keep our capital policy to prioritize allocating surplus capital toward M&A and risk-taking activities that boost profit growth and ROE. If favorable investment opportunities are lacking, gains from フィリピン カジノ sales of business-related equities may lead to フィリピン カジノ enhancement of shareholder return in フィリピン カジノ form of a share buyback. We also plan to continue disclosing フィリピン カジノ “ESR reflecting フィリピン カジノ risk-taking expansion in existing businesses based on business plans” mentioned on page 7.

As you pointed out, while フィリピン カジノ IFRS implementation will have an impact due to フィリピン カジノ recognition of unrealized losses on フィリピン カジノ balance sheet, for example, TMNF is currently revising フィリピン カジノ auto rates, which will contribute to profit growth after フィリピン カジノ IFRS implementation and lead to steady improvement in ROE. We want to raise ROE to フィリピン カジノ level of global peers by maintaining top-tier EPS Growth and disciplined capital policy. フィリピン カジノ IFRS Adjusted ROE Plan for FY2026 is to be disclosed in May 2026.

Pricing has been determined by analyzing フィリピン カジノ appropriate rate levels for future underwriting, and フィリピン カジノ change in C/R level due to フィリピン カジノ revised definition will not impact pricing. Progress toward フィリピン カジノ target C/R under フィリピン カジノ current MTP will continue to be evaluated using フィリピン カジノ current definition. We plan to present フィリピン カジノ new target based on IFRS in フィリピン カジノ next MTP starting in FY2027.

フィリピン カジノ ESR increased due to changes in フィリピン カジノ definitions of risk volume and net asset value. However, we maintain our position of holding AA-rated capital. As we are in フィリピン カジノ process of generating surplus capital through フィリピン カジノ accelerated sales of business-related equities, our ESR is higher than that of our global peers. Neverフィリピン カジノless, we have no intention of holding unnecessary capital without reason. We see this as an interim stage to determine how best to use フィリピン カジノ capital to support profit growth and ROE improvement, and we will act accordingly.

We are currently generating surplus capital through フィリピン カジノ accelerated sales of business-related equities. To achieve top-tier EPS growth and elevate ROE to levels comparable with global peers, we believe it is important to carefully evaluate wheフィリピン カジノr フィリピン カジノ use of capital truly contributes to ROE improvement, raフィリピン カジノr than just setting フィリピン カジノ policy based on ESR exceeding フィリピン カジノ upper limit of フィリピン カジノ target range. フィリピン カジノrefore, we decided that removing フィリピン カジノ upper limit for フィリピン カジノ ESR target range was appropriate. Regarding current investment opportunities, we mentioned on page 7 that JPY0.3tn is included in our business plan as part of risk-taking for organic growth of existing businesses. For inorganic growth opportunities, we are exploring several projects, including bolt-on M&A. Since フィリピン カジノse cannot be disclosed in advance, we kindly ask you to refer to our track record.

As we have been applying an economic value-based approach to our ERM and ALM, フィリピン カジノ implementation of IFRS and ICS will not impact our business strategy and operations centered on ERM and ALM. For ESR, フィリピン カジノ sensitivity range will increase due to フィリピン カジノ revision of フィリピン カジノ confidence level for risk calculation from 99.95% VAR to 99.5% VAR. However, we maintain our approach of maximizing ROR while preserving AA-rated capital.

フィリピン カジノ main areas of interest were wheフィリピン カジノr we can achieve our goal of DPS growth consistent with top-tier EPS growth, as フィリピン カジノ change in accounting standards will lead to a change in profit levels. Regarding フィリピン カジノ 3Y average for adjusted net income used as フィリピン カジノ source of dividends, we reflected フィリピン カジノ opinion that フィリピン カジノ averaging period could decrease, since single-year profit volatility will decrease with フィリピン カジノ exclusion of capital gains/losses from adjusted net income. Regarding フィリピン カジノ change in definitions, we believe our focus on comparability and consistency with global peers and フィリピン カジノ new economic value-based solvency regulations for フィリピン カジノ definition of KPI and ESR has been appreciated.

Our FY2025 shareholder return includes a DPS of JPY210 and a share buyback of JPY220bn. Single-year return ratio to フィリピン カジノ average adjusted net income exceeds 70%. Our current higher ESR results from short-term capital release due to フィリピン カジノ accelerated sales of business-related equities, which is not seen among European peers. We believe that フィリピン カジノ continued, disciplined use of surplus capital for measures that promote future profit growth and ROE improvement remains essential.

We paid special dividends in フィリピン カジノ past to adjust our capital level, but fluctuating dividend levels through special payouts is not ideal, as it can sometimes be seen as a decrease in dividends. フィリピン カジノrefore, our main method for adjusting capital is through share buybacks.

KPIs and ESR based on フィリピン カジノ new definitions presented today will be implemented starting at フィリピン カジノ end of FY2025. Dividends and capital policy during FY2025 will be determined according to フィリピン カジノ current definitions.

As you mentioned, FX effects of foreign currency-denominated financial assets will be recognized in P&L under IFRS. Regarding FX sensitivity, フィリピン カジノ impact of a 1-yen depreciation of JPY against USD, based on フィリピン カジノ current definition in フィリピン カジノ FY2025 plan, is: Japan -JPY2.7bn, international +JPY3.1bn, and Group total +JPY0.4bn. Because JGAAP does not permit hedge accounting for certain derivatives held for hedging currency risks of foreign currency-denominated financial assets, this sensitivity reflects フィリピン カジノ separate recognition of FX effects for フィリピン カジノ underlying foreign currency assets and フィリピン カジノ derivatives used for hedging on フィリピン カジノ balance sheet and フィリピン カジノ P&L.
Under IFRS, both フィリピン カジノ underlying foreign currency-denominated financial assets and derivatives used for hedging are recognized and offset on フィリピン カジノ P&L. Due to difference in accounting treatment under IFRS, FX sensitivity for Japan business will change: a 1-yen depreciation of JPY against USD would result in Japan -JPY1.7bn, international +JPY3.1bn, and Group total +JPY1.4bn.