Ipet : Supplementary Material for FY2021 3Q Financial Results

FY2021 3Q

Financial Results Briefing

ipet Holdings, Inc. (Security code: 7339)

February 7, 2022

About ipet Group

ipet Holdings		Established in October 2020
	Listed on TSE Mothers

100%

ipet Insurance

100％ non-consolidated

Pets First Shogaku		Subsidiary since
Tanki Hoken		October 2020

※Pets First Shogaku Tanki Hoken (P's-first) , small amount and short term insurance provider, is not included in the scope of consolidation (non-consolidated subsidiary company).

100%

Subsidiary since

March 2021

© 2021 ipet Holdings, Inc.

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Recent key business topics

Pet insurance business

Number of

policies

Product revision

-From May 2, 2021-

Customer support

Improvement of customer support quality

Diversity

Promotion of active

participation by women

Financial forecast

Upward revision of earnings forecast

Robust growth due to the strong demand for pets

Recorded the highest number of new policies per month in FY21 2Q Maintaining the industry-leading policy renewal rate (around 90%) →The number of policies in force continues to increase at a steady pace.

Surpassing 700,000policies on Dec 14th (as of the end of December 2021: 703,328 policies).

Product revision including premium change implemented from May 2, 2021. Contributed to the increase in the insurance income. → See p.5 for detail.

ipet Insurance was awarded the second "Excellence Award" since 2014 at the "24th Corporate Telephone Response Contest" sponsored by the Japan Telegraph and Telephone User Association. 《Related URL》 https://www.ipet-ins.com/info/29822/

ipet Insurance received the highest 3rd stage of "Eruboshi" certification from the Minister of Health, Labor and Welfare. Our efforts to promote the active participation of women have been highly evaluated. 《Related URL》 https://www.ipet-ins.com/info/29492/

ipet Holdings revised consolidated earnings forecast at the Board of Directors meeting on February 7, 2022.

Recurring profit +250 mil JPY, net income +130 mil JPY→ See p.4 for detail.

© 2021 ipet Holdings, Inc.	3

Highlights of upward revisions to forecast (Non-GAAP)

• On consolidated basis 》

（Unit：Mil JPY）

Full Term	① FY21		②FY21		②-①	(②-① )/①	FY20
Initial Plan		Revised Plan		YoY	YoY
Revenue	28,600		28,600		－	－	22,878
Adjusted	880		1,130		+250	+28.4%	1,119
recurring profit
Adjusted net income	580		710		+130	+22.4%	▲195

・ S i n c e o u r t o p l i n e i s p e r f o r m i n g w e l l a s i n i t i a l l y p l a n n e d , t h e f o r e c a s t f o r r e v e n u e r e m a i n s u n c h a n g e d .

・ I T s y s t e m d e v e l o p m e n t c o s t s a r e e x p e c t e d t o f a l l b e l o w t h e a s s u m p t i o n s o f t h e i n i t i a l p l a n d u e t o t h e r e v i s i o n o f t h e d e v e l o p m e n t s c h e d u l e .

・ T h e r a t e o f i n c r e a s e i n t h e l o s s r a t i o i n t h e c u r r e n t f i s c a l y e a r i s s l i g h t l y b e l o w t h e a s s u m p t i o n s o f t h e i n i t i a l p l a n .

・ I n v e s t m e n t p r o f i t i s e x p e c t e d t o e x c e e d t h e a s s u m p t i o n s o f t h e i n i t i a l p l a n

• FY2021 full -term profit forecast was revised upward.

© 2021 ipet Holdings, Inc.

4

Premium change implemented from May 2021

In light of the consumption tax hike and the rise in the loss ratio, premium change was implemented from May 2, 2021.

＃We have reduced the premiums for the elderly, which were extremely high, and made it easier to renew contract. ＃We have raised the premiums for young dogs whose loss ratios are deteriorating.

Image ofBefore premium change

After

Uniformly

Age of Dogs 0

12

15

Customer

By reducing the premiums for the elderly, the total premium

burden for those aged 0 to 15 is greatly reduced.

Impact	Premium	Income premiums increase
	Loss Ratio	Suppress the rise in the loss ratio

© 2021 ipet Holdings, Inc.

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