Lifenet Insurance Company Announcement on the Acquisition of Full Ownership of Kizuna Small-amount Short-term Insurance Co., Ltd.

Overview of the Transaction and Business Strategy

Lifenet Insurance Company is strengthening areas including "Embedded" as part of its medium-term plan ending in fiscal 2028, and will leverage the agility of the small-amount short-term insurance business to establish a system that can rapidly provide insurance products tailored to partner ecosystems. Through this transaction, Lifenet will make Kizuna Small-amount Short-term Insurance a wholly owned subsidiary and enter into a share transfer agreement subject to obtaining the approvals from the relevant authorities. By acquiring the company, Lifenet will build a structure to swiftly roll out new insurance products to the large customer bases of its partner companies.

Schedule and Financial Impact Going Forward

The share transfer is scheduled to be executed in April 2027, and the business is planned to commence in Q1 of fiscal 2028. The consolidation of Kizuna Small-amount Short-term Insurance as a consolidated subsidiary is expected from Q1 of fiscal 2027 onward. Although expenditures to start the new insurance business are estimated at approx. 390 million yen, the impact on the fiscal 2026 earnings guidance is expected to be minor. The transaction may be modified until the approval conditions are satisfied.