#LifenetInsurance

For the first quarter of the fiscal year ending March 2027, consolidated operating results show annualizedized premiums of 37,810 million yen (YoY +7.4%), insurance revenue of 9,030 million yen (YoY +9.8%), ordinary income of 2,303 million yen before tax, and net income attributable to owners of the parent of 1,637 million yen. The segment is a single life insurance segment....

As of the end of June 2026, the policyholder annualized premiums amounted to 37,789 million yen, up 107% year-over-year. Individual insurance accounted for 29,177 million yen, and group credit life insurance for 8,611 million yen. New policy annualized premiums were 290 million yen, with 7,598 new contracts; lapse and surrender rate was 5.3% (roughly unchanged YoY).

As of June 21, 2026, Japan Airlines Co., Ltd. has become a new affiliate, increasing its voting rights ownership ratio to 18.33% based on a capital and business alliance. The company aims for strategic collaboration and business expansion moving forward.

Lifenet Insurance has transferred shares to Japan Airlines, with JAL becoming a major shareholder by acquiring 18.32% of shares. The capital alliance has been completed, with changes in director appointments and affiliated companies planned going forward.

As of the end of May 2026, insurance premiums in force converted to annual contract value totaled 37,594 million yen (108% compared to the same month last year), with personal insurance at 29,017 million yen and group credit life insurance at 8,576 million yen.

Lifenet Insurance has transferred shares of its consolidated subsidiary, Lifenet Mirai, and executed a deconsolidation. The capital and business alliance has also been partially modified, with minimal expected impact on future performance.

au Financial Holdings will transfer 14,726,100 shares (18.32%) of our common stock to Japan Airlines, and plans to initiate a capital and business alliance in late June 2026.

Japan Airlines acquires 14,726,100 common shares (18.32%) of Lifenet Insurance held by au Financial Holdings for 29.4 billion yen (2,000 yen per share), accelerating the mid-term plan Embedded promotion together with the strategic partnership with KDDI Group.

Japan Airlines Co., Ltd. plans to acquire 14,726,100 common shares (18.32% shareholding) of Lifenet Insurance Company held by au Financial Holdings Corporation in late June 2026 and to enter into a capital and business alliance.

As of the end of March 2026, policies in force annualized premium totaled JPY 37,291 million, representing 108% year-over-year growth. Individual insurance amounted to JPY 28,719 million (107% YoY) and group credit life insurance totaled JPY 8,572 million (112% YoY).

As of March 31, 2026, au Financial Holdings' director nomination rights for Lifenet Insurance Company are removed and its outside director Mr. Hiro Katani has resigned. Consequently, auFH and KDDI no longer qualify as other affiliated companies, but the 18.32% shareholding remains unchanged, and business alliance continues.

As of the end of February 2026, the annualized premium of in-force contracts was JPY 36,898 million, 109% year-over-year, with individual insurance at JPY 28,528 million (107% YoY) and group credit life insurance at JPY 8,369 million (116% YoY).