(Issued in August 2022)

Strategy/Capital

3

SOMPO’s Capital as a Source of Competitiveness : Capital

Over our 130-year history, we have accumulated numerous capital assets that serve as the source of ourcompetitiveness.

We will combine our stable revenue base and diverse capital built on relationships of trust with a variety of stakeholders to create value that only SOMPO can offer. Our 74,000 employees, each motivated by their own My Purpose, are the driving force for our Value Creation Cycle, which we are using to achieve sustainable growth and realize SOMPO’s Purpose.

Ability to generate cash flow, mainly from domestic P&C insurance, enabling the Group to make growth investments
Gross revenue: ¥3,677.5 billion

Sound financial base and ample room for growth
Adjusted consolidated net assets: ¥2,824.8 billion

Trust and responsibility cultivated through our 130-year history

Customer base of roughly 20 million

Networking with diverse stakeholders

<Leading examples of collaboration>

Palantir; Tier IV, Inc.; National Institute of Advanced Industrial Science and Technology; Institute for Advanced Biosciences, Keio University; and others

<Participation in international initiatives>

Partnership for Carbon Accounting Financials (PCAF), the Net Zero Alliance under the Glasgow Financial Alliance for Net Zero (GFANZ), and others

Group of people who share the three core values that are realized through new work styles

Digitally capable human resources to accelerate DX

A corporate culture unafraid of change

Environment enabling use of cutting-edge technologies
SOMPO Digital Lab: Global trilateral structure Future Care Lab in Japan: R&D on new nursing care

High-volume, high-quality real data accumulated from diverse lines of business

Advanced problem-solving ability for converting social issues into business opportunities

Achieved sustainable growth
Adjusted consolidated profit: ¥261.3 billion

Maintained and improved capital efficiency to meet shareholder expectations
Adjusted consolidated ROE: 9.4%

Diversified to underpin earnings stability
Risk diversification ratio: 41.1%
Overseas business ratio: 23.7%

Made contributions to society in the form of infrastructure that supports daily life
Net claims paid: ¥1,584.3 billion
Number of nursing care recipients: 90,000

Enhanced brand power: Brand value: US$605 million*

Increased presence through engagement in international initiatives
Attended 7 WEF annual meetings in Davos

*Based on a survey by Interbrand Japan, Inc.

Producing employees who are motivated by their My Purpose
Goal: Completion of My Purpose training by all eligible participants by FY2023
Result: 66% have undergone training for domestic P&C insurance, domestic life insurance, and nursing care & seniors business

Enhanced diversity of human resources as a source of innovation
Ratio of female employees in management positions: 26.8%

Improved employee job satisfaction and happiness
Goal: Achieve average Gallup Q12 target by FY2023
(Japan: 3.70 pts, Overseas: 4.10 pts)
Result: Japan: 3.46 pts, Overseas: 4.02 pts

Proactively invested in digital technology and leveraged industry-government-academia collaboration to deliver innovation

Enhanced our lineup of products and services that underpin customers’ security, health, and wellbeing
Newly developed insurance products, riders, and services in FY2021: 46*

Reduced the burden of nursing care and contributed to a sustainable aging society
Goal: Introduce future nursing care models in 258 facilities by FY2023

*Simple aggregate of the number of newly developed products, services and riders released by Sompo Japan and Sompo Himawari Life in FY2021

Contributed to the creation of a green society in which the economy, society, and environment exist in harmony
Greenhouse gases (GHG) Reduction target

Scope 1/2/3 (Category 1–14)

2030: 60% reduction (Compared to FY2017 levels)
2050: Net zero

Scope 3 (Category 15: Investments)

2025: 25% reduction (Compared to FY2019 levels)
2050: Net zero