Can first-half ordinary profit of ¥9.2 billion be backed up by the actual results?

FY2027-Q1 ordinary revenue was ¥42,144 million, up 20.6% year on year, ordinary profit was ¥6,020 million, up 23.3%, and quarterly net income attributable to owners of the parent was ¥2,380 million, up 9.8%. The full-year forecasts are ordinary revenue of ¥150,000 million, ordinary profit of ¥16,000 million and net income attributable to owners of the parent of ¥3,620 million, putting first-quarter progress at 28.1%, 37.6% and 65.7%, respectively. The figures should not be assessed solely by simply allocating the full-year forecasts by period, but profit is running ahead of ordinary revenue, the equivalent of sales.

Meanwhile, the first-half outlook reported on 29 October called for consolidated ordinary profit of approximately ¥9,200 million, up 26.0% year on year. First-half net income attributable to owners of the parent was also reported to be approximately 15% higher year on year. Starting from first-quarter ordinary profit of ¥6,020 million, this implies that more than ¥2,000 million of profit will be built up in the second quarter to reach the first-half outlook. The next results therefore need to be checked for the level of second-quarter standalone profit and the factors behind its change.

The first-quarter summary did not disclose operating profit, and no quarterly cash flow statement was prepared. Accordingly, the next results will need to show not only the actual result against the outlook for ordinary profit of approximately ¥9,200 million, but also whether a profit bridge is provided, including tax expenses and the provision for policyholder dividends, identifying which businesses—non-life insurance, life insurance or small-amount short-term insurance—generated the upside or downside in the first half. It will also be necessary to assess, together with the first-half results, whether the full-year forecasts of ¥16,000 million in ordinary profit and ¥3,620 million in net income are maintained.