Slides
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May 9,2025 FY03/2025 Anicom Holdings, Inc.
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INDEX FY03/25 Financial Results Overview1 Review of Mid-Term Management Plan and FY03/26 Profit Forecast2 APPENDIX3
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Overall Summary (Recurring Revenue and Recurring Profit) Income Statement Summary Recurring Expenses and Profit Indicators Factors of Changes in Recurring Profit (YoY Analysis) Balance Sheet Summary 1． 2． 3． 4． 5． FY03/25 Financial Results Overview Progress of Priority Measures6． 1
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1. Overall Summary (Recurring Revenue and Recurring Profit) 4 Recurring revenue 67,683 Million JPY +12.0% YoY (+JPY 7,246 mn) +2.6% vs. Plan (+JPY 1,683 mn) Of which, underwriting revenue: +8.5% YoY (+JPY 4,588 mn) Recurring profit 4,941 Million JPY +18.8% YoY (+JPY 781 mn) +2.9% vs. Plan (+JPY 141 mn) ◼ Recurring revenue ➢ The number of new pet insurance policies was 245,000, while the number of policies in force reached 1,287,000 (+7.9%), showing accelerating growth. ➢ Outside the insurance business, other recurring revenue grew steadily to JPY 7,235 million (+33.2%). ➢ Investment revenue was JPY 1,586 million (+116.2%), exceeding the plan through agile investment management under uncertain market conditions. Steadily converted demand for pet ownership and changes in the competitive environment into an increase in new policies, while promoting operational efficiency, to achieve record-high revenue and profit. ◼ Recurring profit ➢ Despite transfer costs associated with another company’s policies, we achieved increased profit and performance ahead of plan due to higher revenue and improved efficiency of business operations. Recurring profit before amortization of goodwill 5,191 +19.0% YoY (+JPY 829 mn) Million JPY Results Overview APPENDIXReview/ Plan
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2. Income Statement Summary 5 (JPYmn) Recurring revenue 12.0 ％ Underwriting revenue 8.5 ％ Investment revenue 116.2 ％ Other recurring revenue 33.2 ％ Recurring expenses 11.5 ％ Underwriting expenses 9.1 ％ ・Net claims paid 9.3 ％ ・Loss adjustment expenses 1.3 ％ ・Net commission and collection expenses 1.9 ％ ・Provision for reserve for outstanding losses and claims 11.1 ％ ・Provision for underwriting reserves 34.6 ％ Of which unearned premiums 34.9 ％ Of which catastrophe reserve 30.5 ％ Investment expenses 171.6 ％ Operating and general administrative expenses 13.0 ％ Other recurring expenses 38.2 ％ Recurring profit before amortization of goodwill 19.0 ％ Recurring profit 18.8 ％ Net profit 18.9 ％2,729 FY03/25 67,683 58,862 1,586 7,235 (1,439) 4,941 3,246 97 15,795 1,948 263 17,857 2,693 4,159 4,362 5,191 (5,235) (286) 56,277 38,436 (30,494) (1,108) (5,135) 5,430 62,742 41,928 (33,345) (1,325) (113) (1,122) (1,937) (1,788) (148) (257) ChangeFY03/24 60,437 54,273 733 Results Overview APPENDIXReview/ Plan
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2. Income Statement Summary 6 (JPYmn) Earned premiums 7.8% Claims incurred (including loss adjustment expenses) 9.1% E/I loss ratio (1) 0.7pt Expense ratio (based on earned premiums) (2) -1.0pt (of which, net commission and collection expense ratio) (-0.4pt) Combined ratio (based on earned premiums) (1)+(2) -0.3pt ChangeFY03/24 53,171 31,860 59.9% FY03/25 57,341 34,755 60.6% 32.3% 93.2% 33.3% 92.9% (10.0%) (9.6%) (Reference) Anicom Insurance’s key insurance indicators Results Overview APPENDIXReview/ Plan
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7 3. Recurring Expenses and Profit Indicators * Operating and general administrative expenses ratio, recurring profit ratio (consolidated) Product revisions *Refer to the appendix for management indicators for Anicom Insurance on a non-consolidated basis (loss ratio, expense ratio, number of policies) （％） 26.6 27.9 27.728.3 27.227.2 28.2 27.927.6 27.227.6 26.326.426.526.125.6 25.326.226.927.0 4.7 6.5 6.9 4.8 5.3 7.0 6.6 5.1 5.6 8.4 5.3 6.8 8.1 9.4 4.4 5.7 9.8 9.2 3.9 6.4 0 10 20 30 40 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 21年3月期 22年3月期 23年3月期 24年3月期 25年3月期 連結販管費率 連結経常利益率 Raised premium rate of “Doubutsu Kenpo Family” (pet insurance) Wide Type Start of AXA DIRECT policy transfers Results Overview APPENDIXReview/ Plan FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 Consolidated operating and general administrative expenses ratio Consolidated recurring profit ratio
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Investment expensesCatastrophe reserve ※3 4. Factors Behind Changes in Recurring Profit (YoY Analysis) 8 4,159 +4,125 -2,879 +1，805 -744 -2,075 4,941 FY03/24 Results Consolidated recurring profit Earned premiums ※1 Claims incurred ※2 Agency commissions Investment revenue Other recurring revenue Other recurring expenses Operating and general administrative expenses FY03/25 Results Consolidated recurring profit Note 1) Earned premiums = Underwriting revenue - Provision for normal underwriting reserves (Unearned premiums) Note 2) Claims incurred = Net claims paid + Provision for reserve for outstanding losses and claims Note 3) Catastrophe reserve = Provision for catastrophe reserve losses and claims + Reversal of catastrophe reserve reimbursements (JPY mn) +852-99 -34 -166 Results Overview APPENDIXReview/ Plan
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5. Balance Sheet Summary 9 Total assets 5.5 ％ Cash and bank deposits 4.9 ％ Marketable securities 3.1 ％ Tangible fixed assets 1.3 ％ Other assets 19.2 ％ Total liabilities 15.6 ％ Reserve for insurance policy liabilities 4.3 ％ Of which loss reserves 7.4 ％ Of which underwriting reserves 3.8 ％ Corporate bonds 100.0 ％ Other liabilities 15.0 ％ Total net assets -6.6 ％ Shareholders' equity -3.5 ％ Valuation and transaction adjustments － ％ Other － ％ Total liabilities and net assets 5.5 ％ 9,588 -1,248 -1,916 31,144 30,132 28,066 36,204 44,427 26,774 Change 256 -149 66,357 72,494 3,532 23,242 30,152 10,000 7,653 23,879 27,510 24,551 6,925 8,041 FY03/25 72,494 26,460 29,430 7,014 6,653 5,000 3,245 21,305 FY03/24 66,357 (JPY mn) Results Overview APPENDIXReview/ Plan
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10 Insurance Business The number of new policies exceeded 245,000 for the full year, with a record high of 66,000 on a quarterly basis. The number of policies in force surpassed 1.28 million as of the end of FY03/25. Investment As a result of flexible and opportunistic investment, we achieved the plan. Steadily accumulated income gains, landing roughly in line with the plan The sale of strategic shareholdings and other assets resulted in investment gains that exceeded the original plan Other Promotion of “Strategy of One Patent per Employee” 144 inventors as of the end of FY03/25 (13 inventors as of December 31, 2020) Image Recognition AI Genes, Food, and Gut Microbiota Regenerative Medicine Other Total Patents granted 9 8 2 3 22 [Number of Patents by Field] (As of the end of FY03/25) Cut Style Identification System and Cut Style Identification Method A system that uses AI to determine the cut style of an animal in a photo. Transfers from AXA DIRECT commenced from December 2024. Accounting Period No. of Policies Transferred Transfer Commissions 3Q FY03/25 Approx. 3,000 (actual) Approx. JPY 150 mn (actual) 4Q FY03/25 Approx. 8,000 (actual) Approx. JPY 400 mn (actual) Owing to a steady increase in Doubutsu Kenkatsu applications, the annual renewal rate remained stable and high at 88.2%. [Impact during the current fiscal year] 6. Progress of Priority Measures (Part 1): Insurance Business, Investment, and Other Status of new policies and policies in force Impact of policy transfers from AXA DIRECT Expanding products and services [Example of a Granted Patent] Patent No. 7636958 Results Overview APPENDIXReview/ Plan
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11 Before birth Midstream Downstream Strengthened variations of oral and intestinal care products through Doubutsu Kenkatsu. Upstream Contracts for “Minna no Breeder” and “Minna no Koneko Breeder” are steadily increasing. Net sales: Recurring profit: Day-to-day routines Curing the incurable JPY 2,767 million (Previous year: JPY 2,371 million) JPY 264 million (Previous year: JPY 188 million) We have been actively advancing various initiatives, taking into account the amended Act on Welfare and Management of Animals and other developments. 6. Progress of Priority Measures (Part 2): Businesses Generating Synergies ■ A more convenient and easy-to-use freeze-dried version of “7 Days Food” is now available! ■ Toothbrushing workshops using CRYSTAL JOY were held at group hospitals! Strengthening breeding support Strengthening the matching service business Results of the matching service business (SIMNET) for FY2024 Note: Recurring profit above does not include amortization of goodwill. Joint Research and Development Agreement with Riverfield, Inc. a Surgical Robotics Company Business related to animal healthcare treatments (from prevention to general practice and advanced medical care) Health checkups + commercialization of oral and intestinal care products Results Overview APPENDIXReview/ Plan
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12 6. Progress of Priority Measures (Part 3): Capital Policy and Shareholder Returns ■ Repurchase JPY 3.0 billion in FY03/25 (completed in February 2025) ■ Improved Dividend Payout Ratio 20.2% in FY03/25 (vs. 16.2% in the previous year) ■ Improved Consolidated ROE 11.2%in FY03/25 (vs. 9.4% in the previous year) *Capital cost: 6.6% (previous year: 7.0%) → Equity spread expanded by 2.2pts Results Overview APPENDIXReview/ Plan SMR (Solvency Margin Ratio) ROR（Return On Risk) FY2021 result: SMR 393.5% FY2024 target: SMR 300-320% FY2030 vision: Planning to calculate using new SMR ROR focused management Capital Ensuring financial soundness Improving capital efficiency Strengthening risk return management Shareholder returns (dividend payout ratio / DOE） FY2024 target: Dividend payout ratio around 20% FY2030 vision: Replace dividend payout ratio with disclosure of dividend on equity (DOE) ratio FY2021 result: Dividend payout ratio 9.6% (after dividend increase) › › Risk Return Maximizing corporate value FY2021 result: 8.0% FY2024 target: around 10% FY2030 vision: 12-15% ROE in excess of capital cost Predicated on equity spread
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6. Progress of Priority Measures (Part 4):Sustainability 13 Percentage of Female Employees (%) 61.4 63.8 Percentage of Female Managers (%) 33.7 36.5 Male Childcare Leave Utilization Rate (%) 68.0 69.0 Total Number of Inventors 127 144 Promoting sustainability initiatives that create both economic and social value ■ Diversity Promoting the advancement of women so that diverse talent can fully demonstrate their abilities, while also encouraging both men and women to actively take childcare leave. ■ Disaster Relief ・Fundraising activities for the following disasters: Offshore earthquake in eastern Taiwan, Morocco earthquake, Floods in Libya, Major earthquake in Myanmar, Wildfires in Los Angeles ■ Zero Euthanasia Organizing adoption events through the ani TERRACE shelter for rescued dogs and cats and through partner organizations ■ Health Promoting Doubutsu Kenkatsu (gut microbiota testing) to support early detection of diseases ■ Climate Change ・Established and disclosed net greenhouse gas emissions for Scope 1 and 2 as a key metric ・Achieved 100% use of renewable energy ・Aiming to reduce total emissions including Scope 3 by more than 50% compared to FY2020 by 2030, and to achieve carbon neutrality by 2050 PeopleAnimalsEnvironment Number of Adoptions via hugU 3,701 4,910 Number of Adoption Events Supported 19 17 Number of Rescued Dogs and Cats Adopted 74 69 Number of Doubutsu Kenkatsu Applications 220,413 242,420 Initiatives FY03/24 FY03/25Related Data Scope 1 Emissions (t-CO₂) 271 180 *４,５ Electricity Consumption (1,000 kW)*1 2,513 2,625 Renewable Energy Usage*2 2,728 2,666 Scope 2 Emissions*1,3(t-CO₂) 0 *6 0 *6 Emissions per Employee Scope1*4,5+2*1,3（t-CO2） 0.29 0.18 *1. Includes some provisional figures *2. Electricity derived from renewable energy and non-fossil fuel certificates *3. Market-based standard *4. All CO₂ emissions from company vehicles in FY2024 were offset using J -Credits, achieving carbon neutrality *5. Estimated figures excluding Flowens Co., Ltd. *6. After deducting renewable energy portion Results Overview APPENDIXReview/ Plan
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Review of the Mid-term Management Plan Overview of Basic Strategy 1． 2． Review of Mid-term Management Plan and FY03/26 Profit Forecast FY03/26 Profit Forecast (Full Year and Cumulative First Half) 3． 2
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JPY 7.23 bn 10.7％ 15 【Key Management Targets】 Consolidated Recurring Revenue Consolidated Recurring Profit Consolidated ROE Shareholder Returns (Dividend Payout Ratio) Businesses Generating Synergies Revenue / Ratio Solvency Margin Ratio (non-consolidated) JPY 56.52 bn JPY 3.68 bn 8.2％ (prev. 8.0%) 14.2％ (prev. 9.6%) JPY 4.91 bn 8.7％ FY03/23 Results 373.1％ (prev. 393.5%) JPY 60.43 bn FY03/24 Results JPY 4.15 bn 9.4% 16.2％ JPY 5.43 bn 9.0% 333.7% Generally achieved the numerical targets set in the Mid-term Management Plan JPY 67.68 bn JPY 4.94 bn 11.2％ 20.2％ FY03/25 Results 345.2％ JPY 65–70 bn Initial Mid-Term Plan JPY 4.5–5.0 bn Around 10% Around 20% JPY 7.8–8.4 bn Around 12% 300–320% 1. Review of the Mid-term Management Plan (Part 1) Results Overview APPENDIXReview/ Plan
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Initial Mid-Term Plan 16 Insurance Business Businesses Generating Synergies Expense Ratio Combined Ratio 34.9％ (prev. 36.7%) 93.8％ (prev. 94.8%) 33.3% 93.2% Animal Hospital Business* Number of Genetic Test Samples Revenue : JPY 1.76 bn Profit after goodwill amortization : -JPY 260 mn 92,000 / year 67,000 / year JPY 176 mnHealth Innovation Business Revenue Loss Ratio 58.9％ (prev. 58.1%) 59.9% Number of Gut Microbiota Test Applications 211,000 / year 220,000 / year JPY 63 mn The insurance business offset the rise in the loss ratio by reducing the expense ratio. 32.3％ 92.9％ 66,000 / year 60.6％ 242,000 / year JPY 290 mn 35–36％ 93–94％ Target: JPY 3 billion in revenue with profit after goodwill amortization 120,000–150,000 / year Target: JPY 800 mn - 1 bn in revenue 58–59％ 200,000–250,000 / year 【Key KPI Targets】 FY03/23 Results Revenue : JPY 2.19 bn Profit after goodwill amortization : -JPY 30 mn Revenue : JPY 1.87 bn Profit after goodwill amortization : -JPY 170 mn * Figures include past fiscal years and reflect allocation of indirect expenses. 1. Review of the Mid-term Management Plan (Part 2) FY03/24 Results FY03/25 Results Results Overview APPENDIXReview/ Plan
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17 Synergy-Generating Businesses for Animals at Every Stage of their Lives Achieving both social and economic value ・Gut Microbiota Testing Business ・Health Innovation Business ・Animal Hospital Business ・Advanced Medical Care Business Providing insurance that “Makes Pets Healthier upon Entry”, more fulfilling lives Our Strength: The Pet Insurance Business Medical care Daily life ・Differentiated by pursuing the unique qualities of Anicom’s preventive-style insurance ・High customer convenience and operational efficiency enabled by OTC (over-the-counter) insurance settlement ・Strong nationwide sales capabilities and diverse sales channels ・Creation of new value such as health promotion services through analysis of wealth of data ・Active recruitment of diverse professionals with specialized expertise External Environment ・The surge in pet ownership during the COVID-19 pandemic has settled but remains steady ・Major corporations and other new entrants are continuing to enter the pet insurance market ・Following the tightening of regulations under the Animal Welfare Act, the integration of breeders and pet shops is accelerating a transformation in pet distribution ・Increasing frequency of visits to animal hospitals and rising unit costs of medical care ・Breeding Support Business ・ Matching Service BusinessFrom before birth to adoption 2. Overview of Basic Strategy Results Overview APPENDIXReview/ Plan U p s t r e a mM i d s t r e a mD o w n s t r e a m
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35,000 73,000 1,800 3,300 2Q 4Q 60,437 67,683 73,000 4,159 4,941 3,300 24年3月期実績 25年3月期実績 26年3月期計画 経常利益 (百万円) 経常収益 (百万円) Recurring profit (JPY mn) Recurring revenue (JPY mn) FY03/24 Results FY03/25 Results FY03/26 Plan Cumulative First-Half Plan Recurring profit (JPY mn) Recurring revenue (JPY mn) 18 (Down 33.2% YoY) (Up 7.9% YoY) Full-Year Plan 3. FY03/26 Profit Forecast (Full Year and Cumulative First Half) For details, refer to the Mid-term Management Plan 2025–2027 Results Overview APPENDIXReview/ Plan
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Major Management Indicators Anicom Insurance (Non-Consolidated): Recurring Revenue Indicators Anicom Insurance (Non-Consolidated): Recurring Expenses Indicators 1． 2． 3． APPENDIX3 (Trend in New Policies / Number of Pet Insurance Policies in Force) (Loss Ratio (E/I), Expense Ratio based on Earned Premiums)
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1. Major Management Indicators 20 End-FY03/26 Numbers Rate (forecast as of May 9) 1,193,560 1,287,923 94,363 7.9％ 1,390,000 223,289 245,741 22,452 10.1 ％ 280,000 88.2 % 88.2 % - 0.0 pt 88.2 % 4,381,000 4,564,000 183,000 4.2 ％ 4,804,000 YoY Change (4) Insurnce payout cases (1) Policies in force (2) New policies (3) Renewal rate End-FY03/25End-FY03/24 End-FY03/26 (forecast as of May 9) 59.9 % 60.6％ 0.7 pt 61.1 % 33.3 % 32.3％ -1.0 pt 33.6 % 93.2 % 92.9% -0.3 pt 94.7 % YoY ChangeEnd-FY03/24 (5) E/I loss ratio (6) Expense ratio (based on earned premiums) (7) Combined ratio (based on earned premiums) End-FY03/25 24年３月期末 （５月10日予想） 333.7 % 345.2 % 11.5 pt YoY ChangeEnd-FY03/24 (8) Solvency margin ratio (non-consolidated) End-FY03/25 220,413 242,420 10.0 ％ 6,879 6,964 1.2 ％ 67,801 66,276 -2.2 ％(11) No. of samples for genetic testing YoY ChangeEnd-FY03/24 (9) No. of applicants of Doubutsu Kenkatsu (gut microbiota testing) (10) Animal hospitals accepting Anicom 3Q FY03/25 Results Overview APPENDIXReview/ Plan
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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 21年3月期 22年3月期 23年３月期 24年 3月期 25年3月期 系列1 842 870 896 921 952 981 1,00 1,02 1,04 1,07 1,09111311321154117211931213123612601287 842 870 896 921 952 981 1,004 1,028 1,049 1,073 1,094 1,113 1,132 1,154 1,172 1,193 1,213 1,236 1,260 1,287 400 500 600 700 800 900 1,000 1,100 1,200 1,300 2. Anicom Insurance (Non-Consolidated): Recurring Revenue Indicators 21 Quarterly trend in number of new policies Quarterly trend in number of policies in force (‘000) (‘000) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 21年３月期 22年３月期 23年３月期 24年３月期 25年３月期 系列2 系列1 53.4 53.8 52.0 54.0 60.0 58.6 54.0 55.7 53.9 55.2 55.4 54.0 55.1 55.7 54.9 57.4 57.9 59.5 61.3 66.8 系列3 53.4 53.8 52.0 54.0 60.0 58.6 54.0 55.7 53.9 55.2 55.4 54.0 55.1 55.7 54.9 57.4 57.9 59.5 61.3 66.8 0 10 20 30 40 50 60 70 Results Overview APPENDIXReview/ Plan FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 FY03/21 FY03/22 FY03/23 FY03/24 FY03/25
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3. Anicom Insurance (Non-Consolidated): Recurring Expenses Indicators 22 Note 1: The graph below shows quarterly average values, and the data therefore may differ from average values for current period. Note 2: The expense ratio represents the “expense ratio based on earned premiums” (insurance business expenses / earned premiums). [Reference information] 1Q FY03/15 ■ Raised premium rate ・Average revision of 12% 3Q FY03/15 ■ New products with limited hospital days ■ Launch of “health discount/extra premium” system 2Q FY03/18 ■ Raised premium rate ・ Raised premium rate for animals that are eight years or older 58.7 59.8 59.4 55.9 59.2 59.6 58.9 55.0 59.0 59.9 60.4 56.3 59.6 61.6 60.8 57.7 61.1 61.7 62.0 57.8 36.7 37.7 38.0 38.4 38.6 37.4 36.4 34.6 35.5 35.1 34.8 34.4 33.8 33.0 33.3 33.0 32.8 31.4 31.4 33.5 20 30 40 50 60 70 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 21年3月期 22年3月期 23年3月期 24年3月期 25年3月期 E/I損害率 既経過事業費率 Raised premium rate of “Doubutsu Kenpo Family” (pet insurance) Wide Type 3Q FY03/19 ■ Launch of “Doubutsu Kenkatsu” ■ Raised premium rate • Revised premiums and breed classes Commencement of transfer of AXA DIRECT insurance policies (％) Results Overview APPENDIXReview/ Plan E/I loss ratio Expense ratio FY03/21 FY03/22 FY03/23 FY03/24 FY03/25
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(Reference) Impact of Insurance Accounting on Recurring Profits/Losses Policies commencing in April Policies commencing in May Policies commencing in June Policies commencing in July Policies commencing in August Policies commencing in September Policies commencing in October Policies commencing in March 1. Impact of growth in premium on recurring profits/losses (Based on Japanese non-life insurance accounting) Generally, the growth in premium contributes to an increase in recurring revenue, but Japanese non-life insurance business laws require non-life insurance companies to carry any unearned premium portion over to the coming fiscal year as an underwriting reserve (unearned premium). Conversely, expenses such as claims incurred, agency commissions, operating and general administrative expenses are required to be accounted to that fiscal year. There is, therefore, a negative impact on recurring profits/losses when above expenses exceed earned premium in current fiscal year even if sales revenue rise due to growth in premium. Current fiscal year (*Earned premiums) Coming fiscal year (Unearned premiums) Earned premiums Operating and general administrativ e expenses Agency commis sions Claims incurred 23 2. Impact of catastrophe reserves on recurring profits/losses (Based on Japanese non-life insurance accounting) ・Every non-life insurance company must accumulate catastrophe reserves each fiscal year in order to prepare for natural disasters. Insurance companies accumulate this reserve each fiscal period. ・The reserve is liquidated (decreases expenses) when the net loss ratio* exceeds 50%. *Net claims paid ÷ Net premiums written Results Overview APPENDIXReview/ Plan