Daiichi Life Group, Inc. (8750) Earnings Call Transcript & Summary

Thank you, and good afternoon. Thank you very much for giving us your time today. I am Yamaguchi, Business Head of International Life Insurance. And this is my profile. I joined Dai-ichi Mutual Life Insurance Company in 1989. And from 3 years ago, I've become responsible for the overseas business, and this is my third year. I have become a Senior Manager, Executive Officer, Business Head of International Life Insurance in April 2024. I have experience working in New York and also in India. Next slide, please. And today, myself and Brett will be providing a briefing on what we are doing in our International Life Insurance business. So to provide an overview of the International Life Insurance business, I would first like to give a brief history of our group's market expansion and the adjusted profit target of the International Life Insurance business. So starting with our market expansion to Vietnam in 2007, our group has entered an expanded business in Australia, Thailand, India, Indonesia, United States, Cambodia, Myanmar, New Zealand. And as announced, we are also planning to enter into the U.K. market as well. Last fiscal year, the International Life Insurance businesses adjusted profit exceeded JPY 100 billion for the first time, expanding our share of the group-wide adjusted profit to 1/4 approximately 25%. Dividends received from overseas subsidiaries have also continued to grow steadily, exceeding JPY 280 billion in the amount of accumulated dividends. In this way, through steady growth in profit and dividend payments, we are contributing to the group's capital circulation management. Going forward, we aim to expand our share of the group's adjusted profit to approximately 40%, or JPY 160 billion, by FY 2026 and approximately 50%, or JPY 300 billion, by FY 2030. In order to achieve these adjusted profit targets, we have the recent initiatives and future vision by region, which I will cover in the next slide. The International Life Insurance business mainly operates business in 4 regions, namely North America, Oceania, Asia and Europe. Going forward, for each market, we have strategies in place according to the market's level of maturity in our 3-level maturity scale comprised of advanced market, growth market and early market. North America, Oceania and Europe are positioned at vast markets. And through capital efficiency improvement and business scale expansion, we aim to pursue an immediate contribution to the group's adjusted profit. Recent initiatives here include those in North America with Protective's acquisition of ShelterPoint, as well as seeding of in-force box to reinsurance, and initiatives in Oceania was TAL's investment in Challenger. Going forward, we aim to pursue scale in mature extremely large markets, explore new areas such as capital-light businesses and further drive expansion into adjacent businesses and pursue synergies. In Asia, we position markets such as Vietnam and India as growth markets, and markets such as Cambodia and Myanmar as early markets. By capturing the high growth potential and leveraging our early market entry advantage, we aim to contribute to the group's profit in the mid- to long term. Recent initiatives in this region include enhancement of distribution channels, expansion into neighboring regions where synergies can be expected, as well as expanding market share. On the other hand, as can be seen from the dissolution of our capital relationship with Ocean Life in Thailand, we will be reviewing our business portfolio in an appropriate manner at the appropriate timing. In order to achieve our adjusted profit goals for FY 2026, we will be entering into new markets and/or work on M&A activities to further our contribution to additional profit. As mentioned earlier, our recent initiatives for investment in M&G in the U.K. provide a launch pad for us to enter and expand into the European life insurance and asset management business in the future. We will continue to work on further globalization of our business portfolio going forward. And last but not least, in this slide, I've mapped the Dai-ichi Life Group's coverage of major markets and regions across the world. As you can see, we have a well-balanced coverage of major markets across the world, such as North America, Japan and Europe. We are benefiting from the high growth potential in the Asia Pacific region and have established a competitive position in each market. And from this point onwards, we'd like to continue focusing on these endeavors. And from here, we'd like to focus our presentation on our strategies for a region which plays an important role for sustainable growth in the International Life Insurance business. And so I'd like to turn it over to Mr. Brett Clark, who oversees the Asia Pacific region to talk about recent initiatives and strategy going forward.

Well, good afternoon, everyone. Please allow me to speak in English today. It's my pleasure to be here today with you and talk to you about the Asia Pacific strategy. My name is Brett Clark. I'm Senior Managing Executive Officer of Dai-ichi Life Holdings, and CEO and Managing Director of Dai-ichi Life Asia Pacific. In my current role as an executive of Dai-ichi Life Holdings, I have the responsibility to lead Dai-ichi Life's strategy and business operations in the Asia Pacific region, including the Oceania region. I've been very fortunate to have a long career in life insurance for over 30 years. I'm a qualified actuary and commenced my career in various actuarial and management roles with a particular focus on product management, marketing and business growth. Prior to my current role, I was the CEO of TAL, Dai-ichi Life's business in Australia for almost 10 years, and I've had 16 years in total working for TAL. In fact, in my first week working with TAL in August 2008, Dai-ichi Life made its first investment in TAL. And so I consider that I've been a Dai-ichi Life executive now for 17 years. And then prior to TAL and Dai-ichi Life, I spent almost 10 years with AIA. Next slide, please. And so today, I would like to provide you a brief overview of the strategy for Asia Pacific, and then I look forward to your questions. Before I go through this, I would like to share some context for the Asia Pacific business environment and our strategy. This slide covers the key trends and implications for our business strategy in Asia Pacific. I don't intend to go through this line by line, but I would highlight some key points. Asia Pacific, including Oceania, presents a diverse portfolio of market opportunities. From early-stage, high-growth markets, to more developed markets, to more mature markets like Australia. Demographically in Southeast Asia and India, in particular, the growing middle class continues to present growing demand for the products and services that we provide, and opportunities for sustainable long-term growth for our business. But of course, we're not the only company that sees this opportunity, and we respect our competition, and know that we will need to be agile, move with speed and be consistently at our best to win and compete and perform in our chosen markets. Next slide, please. My objective is that the Asia Pacific region is a growth and earnings platform for the Dai-ichi Life Group, supporting the ambitions more generally in the international business led by Yamaguchi-san. The ambition for Asia Pacific is to contribute 25% of Dai-ichi Life group adjusted profit by 2030 at a return on equity of greater than 15%. Today, currently, Asia Pacific contributes around 13% of group adjusted profit and a return on equity of around 13%. So we have a challenge to go together with our ambition, and I'm personally very excited about that. We will do this by supporting our existing businesses to grow, seek new opportunities to grow in existing markets and in new markets, and be disciplined in the allocation of capital. Our Asia Pacific strategy has prioritized market opportunity based on individual market characteristics and opportunities. And secondly, our ability to successfully compete and win in our chosen markets. As a result, we intend to compete in markets where we have higher confidence we can scale our business and win in the market, and likewise, avoid subscale market positions where we will be challenged to effectively compete. As we roll out this strategy in the future, this may mean our footprint in the Asia Pacific region may be fewer rather than more countries, compared to some of our regional competitors, and we are comfortable with that approach. Next slide, please. While Asia Pacific is not a homogenous regional market, our strategy identifies 3 existing growth engines in the Asia Pacific region, namely the Oceania region, the Mekong region and India, where these markets are linked by common cultures and common market dynamics. As a very large market and opportunity, India stands on its own in this strategy. Of course, we have performance and growth expectations for each of our individual businesses in the Asia Pacific region. While within these three engines, in addition, over time, we also expect strong strategic revenue and expense synergies that are obviously -- are more obvious and more easily realized. In addition to meet our 2030 ambition as we expect to grow from our existing 3 Asia Pacific engines, we would also like to add a fourth engine in the Southeast Asia region to the portfolio. Next slide, please. I would like to now cover our recent investment in Challenger, a listed financial services, retirement and asset management business in Australia. Our Life Insurance business in Australia, TAL, is the leading life insurer with 33% market share. Around half of the revenue of TAL is default group life insurance provided through Australia's superannuation system, which provides life and disability protection to working Australians. The reason I mentioned TAL as part of the Challenger investment is to illustrate the importance of the superannuation ecosystem in Australia. Superannuation is the largest and fastest-growing nonbank financial services system in Australia and central to the wealth management, asset management, insurance and retirement sectors. Australia's superannuation system is a mandatory retirement savings system for all working Australians, and is one of the leading private retirement systems in the world and currently the fourth largest retirement asset pool globally. By 2030, it is estimated to be USD 4 trillion in size. And in the next decade, Australia is expected to be the second largest retirement system globally, only behind the United States. In addition, over the next decade, we expect to see significant growth in the retirement market from both demand and supply side factors. Firstly, population demographics. More Australians will be reaching retirement age with more wealth seeking retirement products and solutions. Secondly, government policy tailwinds. Government policy stimulus for the retirement market through the introduction of the retirement income covenant, and financial services reform will aid the retirement sector. Thirdly, superannuation fund scale. In addition to financial advisers as part of the retirement income covenant, superannuation funds will offer retirement products directly to superannuation fund members. And lastly and fourthly, regulatory support. Capital changes to capital regulations by the local regulator, APRA will support more efficient manufacturing of retirement and longevity products. So by 2033, it's estimated that 3.6 million retirees will hold 1/4 of the superannuation systems assets, while a further 6.3 million Australians will be approaching retirement with almost half of the systems assets. This represents a profound and large shift in demographics, wealth distribution and a significant opportunity for organizations that are well positioned in the Australian market. Challenger is the market leader and dominant retirement income provider in Australia. To capitalize on this future opportunity, Dai-ichi Life has acquired 19.9% of Challenger through our Australian subsidiary, TAL, subject to final regulatory approval. And in terms of the ambition for Asia Pacific, the 19.9% shareholding of Challenger will add approximately JPY 9 billion to JPY 10 billion per annum in group adjusted profit. While both TAL and Challenger will continue to pursue their own competitive strategies in the market, we also see future collaboration opportunities between the two businesses. And an example of that was this week, where in [ Sydney ], a very large Australian superannuation fund has jointly appointed TAL and Challenger as their retirement income provider. And so we see this as a natural extension of our strategy in Australia, and beyond Australia, to expand from protecting people while they are working, to protecting people in retirement. Next slide, please. And just to finish, finally, I would like to highlight some other achievements in the Asia Pacific region. In Vietnam, despite some challenging market conditions, Dai-ichi Life has achieved the #1 rank for new sales among all foreign life insurers only behind the local insurer [indiscernible]. In Cambodia, we are pleased to have commenced a new partnership with Woori Bank as part of our work to continue to expand our distribution footprint and growth platform in Cambodia. In Myanmar, it was very sad to see the devastation on local communities from the recent earthquake. Our first priority was the safety of our people and support for impacted communities, and we were on the ground to provide support and provide aid. Nonetheless, as a testimony to the amazing resilience and spirit of our people, the performance of our business has rebounded, and our business in Myanmar continues to perform well. And lastly, in Thailand, as you may know, we have recently discontinued our strategic partnership and 24% shareholding in Ocean Life, selling our shares back to our joint venture partner. And that concludes my presentation for today. Once again, it's been a pleasure to speak with you, and I look forward to your questions. Thank you.

Hello everyone. As introduced, my name is Ogata. And as of July 1, I have assumed the post Business Head of New Fields of Business. You see my profile here on the page. And in my 30 years post career, half of that has been spent in strategic consulting, and half of that in a business entity. And I have been working on various new businesses over the course of my career. And I believe that was the expectation behind my getting appointed in my current role. And today, I'd like to talk about our strategy for new fields of business, as well as the role of Benefits One in that strategy. And also, I'd like to talk about the status of post-merger integration activities at Benefit One. Those are the 3 things I will talk about today. Next slide, please. So as we have been saying previously, the Dai-ichi Life Group is aiming to transform itself into a kind of infrastructure that supports customers in all aspects of their daily lives, which goes beyond the conventional life insurance business. We're aiming to turn ourselves into an insurance-related service provider. Our group has continued to provide insurance products for over 100 years. And while we support customers for decades throughout their life, unfortunately, the moment when they feel value is when we pay their claims payment. So there was a gap between what we are doing and the value per see. People are now using smartphones everywhere. And customers use a lot of services through their smartphones, services are at their fingertips. And given the situation, we want to be providing services that support all aspects of our customers' daily lives. In order to do that, we believe that insurance is not enough. We want to provide other things as well in order to provide value. And so as announced earlier, we are changing our trade name to Dai-ichi Life Group, Inc. from FY 2026. So in name and in substance, we really want to show our commitment. So in turning ourselves into -- transforming into an insurance service provider, I'd like to provide an image of what we envision. This is shown in the chart here. And as members here today will be quite familiar, the group's goal of achieving JPY 600 billion in adjusted profit in 2030, as well as we have a target of achieving JPY 10 trillion in terms of market cap. And in order to increase the market cap and corporate value, we need to increase our profit for the insurance business as well. And we also need to enhance the market's future expectations for our long-term growth as well for insurance and other businesses. If you look at the insurance businesses [ PER ], generally speaking, it's around 10x multiple, which is also true for ourselves. But if you look at other services like IT and digital, the multiple is many times more than that. And so outside of the insurance business, we want to connect new values so that we will be creating expectations for growth that was not possible with just focusing on insurance. That's why we want to contribute to enhancing corporate value. And we believe the new fields of business will help contribute to that purpose. So strategically speaking, what are we going to do? I'd like to talk about three directions that we want to go in. The first direction is to work on deepening the Benefit One platform, which we acquired. And we want to be expanding our alliance, expanding customer bases where we can cross-sell. And we also want to work on bolt-on M&As, and also use AI and digital capabilities to further improve our services. The second direction we want to work on is to explore adjacent areas besides Benefit One. So our group has been providing services like our health care app, QOLism. And we have Benefit One's health check services and specific health guidance services. By combining these health care-related services, and by adding on new service, we believe that we can go beyond insurance, looking to promote customers' health. And that's the kind of health care service that we would like to pursue. Thirdly, expanding into high-growth areas. I mentioned we want to enhance expectations for future profit growth. So insurance Benefit One and adjacent areas. And in addition to that, we see new technologies cropping up every day. So we want those new technologies and new businesses to be a part of our investment. And the world is moving much faster. In 5 years' time, we do not know what kind of new businesses we will see. Generative AI was nonexistent 3 years ago. So that is where we want to constantly look for information in building our new businesses. And as part of that from this year, we are working with a new business program, creating new business from scratch. And it's a joint company venture program where we solicit ideas from group company employees, including Total Life Plan Designers. So we want to leverage the three methods of new business buy, borrow and build, which is working on M&As, alliances and also working on business development from scratch and then expanding. By doing that, we want to be creating services that previously did not exist. Next slide, please. And next, I'd like to talk about the role of Benefit One in the new fields of business. As you know, Benefit One operates in a B2B2E platform business model. And so we've been providing benefit services for our corporate clients. And in addition to the benefits package, we also help companies solve challenges in the area of HR accounting and general affairs. So traditionally, Dai-ichi Life Group has mainly been focusing on insurance solutions as a group insurance group annuities and business owners insurance. But by providing together with Benefit One various other services, we'll be able to create more customer touch points and provide more services. And as you see on the right-hand side, for the 2E services, this is where we can leverage the Benefit Station platform to provide our corporate customers, employees and their families with a broad range of services, including child care, nursing care and health care services that stay close to the daily lives of these people. Now as mentioned earlier, for insurance services, there's a long time before customers build a benefit. But by increasing a lot of new customer touch points, we will be able to create new value. Now I'd like to talk a little more about how we look to combine our assets and what are we aiming to achieve? The Dai-ichi Life Group has not only provided insurance in the past, it has also provided health care services like QOLism as well as BaaS services, and other asset forming services. So the data we've already got from these services can be combined with Benefit One's Benefit Station uses history data, which makes it possible for us to provide proposals that are best suited to our customers. For example, if there's a person who has withdrawn a lot of money from the BaaS bank account, who has also used the marriage-related service on Benefit Station, then we can go on to recommend overseas travel and house moving services on Benefit Station. And also using this information, we will also be able to create opportunities for face-to-face consulting with our Total Life Plan Designers, who will be able to give proposals with better understanding of the customers' needs. So by combining a lot of information, we want to tie that to better proposals, better services for our customers, and we want to be building that engine to provide that capability. Lastly, I'd like to talk about a 1-year plus effort for post-merger integration efforts underway at Benefit One. Through the past year, we've been working at various levels in the PMI process. And working on governance, top management from both companies have held 4 -- steering committees 4 times a year, so that Benefit One and Dai-ichi Life Group members could continuously talk about discussions going forward for future growth of Benefit One. In addition to the top-level talks and the working level, we have over 50 working groups created where employees on the ground talk bottom-up what can be done, spanning from new product ideas up to cost efficiency improvement ideas. And we are pursuing synergy between Benefit One and the Dai-ichi Life Group. And also in integrating operations, the Dai-ichi Life Group has been sending people to keep post in Benefit One. We also have personnel who are responsible for PMI as well. And in the short term where we have the high expectation is to really use the Dai-ichi Life Group's distribution channel to expand sales of Benefit One services. So we have dedicated groups in place and also have dedicated liaisons who will be working on this. Next slide, please. So I believe this slide shows the information that you are very interested to know. Recently, what are we seeing in terms of achievements? So on the left-hand side, you have the short-term synergy. Of course, the Benefit Station sales opportunities started last year in May with 400-plus sales reps. And then in autumn, we also had Total Life Plan Designers also work on sales activities for Benefit One. And for Benefit Station services, these are corporate customer services. And so it takes some time for these to be approved. But in terms of on an annual basis, we see almost JPY 4 billion of annualized new membership fees. This is a big growth compared to the current level of our membership fees. It's easy to talk about these benefits, but many companies are finding that it's quite difficult to achieve. So I've just assumed my current post in July, but the thing that amazed me the most is that we are seeing steady progress and already seeing synergy between the 2 entities. Besides that, as you can see on the right-hand side, providing insurance products and Benefit One services, and also Total Life Plan Designers developing business in order to expand our corporate customer base. Also, our health care app QOLism become bundled to Benefit Station. So these are various ideas that came from the working level groups, which are now really close to realization. So things that we had a vision for the mid- to long term are already materializing. So very briefly. Our group, which we are changing the trade name to Dai-ichi Life Group. I talked about our strategy as well as where we are with PMI. As mentioned in the beginning, turning ourselves into an insurance-related service provider, and enabling growth of corporate value is something that we'd like to work on with speed. Thank you very much for your kind attention.

I'm Norio Shiraishi, President of Benefit One. It's nice to see you. I would like to first talk about how the company was founded first. I used to work in Pasona Japan and Mr. [Son] of the SoftBank and [indiscernible] representative had a meeting, and we talked about that there would be an era of Internet, and we want to do some business around it. So in case of the goods, there is a distribution. But in case of services, there's no distribution. Well, in case of goods, goods are sold at 7-Eleven and Ito-Yokado and other supermarkets. But in case of services, the services are sold directly by the creator of the services, or in case of the cell phones, it is sold through agents. And so it's very difficult for consumers to compare the services and decide what services to buy. So we wanted to create a kind of social infrastructure where people can see the differences in services and compare services and make decisions. So the first intention was to create a company like Amazon, which sells services. And I thought -- we thought that the subscription model would be the best by receiving the annual fee, and we sell the service at the cost. And so that's how we started the company. However, the marketing cost would be huge. So there weren't many companies who did that. So about 30 years ago, we started the subscription service company, and we could do that because we sold the services through the companies people work for, and that makes it easier to acquire membership. So in the past, B2B2C was the model. And I believe that we are the first company who started [B2B2E]. Please go to next page. So this shows the evolution of our company in the past 30 years and the membership is growing steadily. We purchased JTB Benefit and the membership increased very significantly. And currently, the membership exceeded 10 million. And this includes family members. So if we include family members, there are about 30 million members. And in addition to the employee benefit, we have other businesses as well. So I will not go into the details. The largest one is the employee benefit business. So this is the kind of subscription service and we acquired membership using the term employee benefits. So the Japanese companies have been providing employee benefits in the form of the company resort, or other forms of benefits. So the Japanese companies has a history of providing services to their employees. Some companies have hospitals and also the inns. So they used to use their asset and provided the services. However, we can provide the services for them at the cost, and we started the business about 30 years ago. And there was a financial crisis in 1998, and then people become kind of asset-light mind. And many companies close their company inns and they concluded a contract with a company like us, and use the hotels through such service companies, and that was most cost efficient. And -- there are different types of services and finance and health care looked most problematic because it was difficult for consumers to understand these services. But actually, these are very profitable businesses the finance and health care. So we wanted to focus on these areas. In terms of health care. In Japan, the medical cost is very high. And in Japan, we had to reduce the medical cost, and we introduced metabolic syndrome prevention measures. So there was -- the law was passed to prevent that kind of metabolic syndrome. And because -- thanks to that, we started the health care services business as well. So the current situation -- so we have struggled quite a lot because Japan has faced a deflation and there was a lot of people who wanted employment. And at that time, the companies did not want to focus on human resource because they could easily hire people without much effort. However, now we are facing a workforce shortage. So the small and medium-sized companies have to do something in order to ensure employment recruitment. So employee benefit was only for the regular employees, but because of the law, SMEs had to provide such benefit to employees as well. So however, there are many companies who are not obeying this law, but many companies are now introducing the benefits for -- employee benefits, even for the contract workers as well. And penetration is about 30%. There is a critical mass principle. So if the service exceeds 30%, that would -- the penetration will accelerate after that. So because we joined Dai-ichi Life Group, we will be able to leverage the manpower of the sales reps of Dai-ichi Life. And that would be a very positive thing for us, and we can get a very good tailwind. And this -- these are the major KPIs in recent days. The number of the membership exceeded 10 million. And the unit price, thanks to the Netflix plan has tripled, and the rating of app has went up to 4.5, and the number of payroll deduction membership doubled, and the number of visits of health checkups increased 1.5x. So we are growing very steadily. And these are the major initiatives for this fiscal year. We believe that this is a preparatory year. And next year, we will start everything in earnest. So by April next year, we have to prepare our organization and system. And we are now building the sales organization in detail. My major theme is we would like to prepare unification of communication with Dai-ichi Life, so that Dai-ichi Life will think about our business as their own. And we have started the payment business, and we would like to expand that and also the health care business. I would like to talk a lot about this, but the time is limited, but we believe this will boom next year, and we are now preparing for it now. And eventually, we would like to make all the Japanese people a member -- make all Japanese people our member through their own companies. And we would like to create the largest B2E platform. We would like to provide all the services to employees and consumers, and create a mechanism where the people can compare the services and choose their services, including [health care] and beauty. And I think the finance would be the key area, including insurance. So that need to be visualized and appropriate way of selling need to be introduced. And there will be some changes in laws, and we would like to pursue that area. I talked about the payment business, but investors said that there will be no fee in 5 to 6 years. It's not because people don't pay the fees, or we would remove the fees, but we are trying to make 120 million people our members. And we are sure that we can do without receiving fees. And we believe that some companies would not pay fees. And if there's no fee, there's no reason why the companies deny joining us. So the new payment system, payroll deduction is introduced. And I think there is also a company like that, but direct withdrawal from the salary payment, you can pay the electricity bills and all types of bills. We want to try to do that. It's very costly and there's a risk and it's kind of bothersome. So we wanted a different form of payment. And that's payroll deduction. That's less costly and lower risk. So we are thinking about the -- we have created a platform for payroll deduction. And the life insurance company has always done this because there's a discount offered by the life insurance companies for paying the premium by payroll deduction. So I did the research on life insurance company. So all the -- everything like electricity and water bills, all the cost can be paid by payroll deduction, and we can receive fee. We are receiving 3% fee from [indiscernible] and Netflix as well. And so we took 2 years to negotiate with Netflix, but this B2E platform is something that does not exist in the U.S. and Netflix agreed to do this.

Eventually, I'm Senior Managing Executive Director of Dai-ichi Life. And Dai-ichi Life is considered as an insurance company and also financial institution. But for me, insurance and finance are part of the services we provide. So eventually, Dai-ichi Life Group will handle all kinds of services, including insurance and finance, but also health care. I think all the services will be used by combining different types of services. So we can create a new social platform that does not exist in this world today. So this is maybe the last slide. So now what we are trying to do is to expansion of membership, we would like make 120 million people our members. We can reduce the -- we can do that in 6 to 12 years. We make all of them members, and we can increase the transaction of payroll deduction. And we want to provide all the services at the lowest cost. And also, we would like to propose the optimal service for individuals through the Internet, or using AI, they can find the optimal service for individuals. It really depends on the person, what is the best service for them. If you think about eating, the preference differs from person to person. And what you want today may be different from what you want a week later. So we are offering this using a digital network, but because we joined the Dai-ichi Life Group, we have 35,000 sales reps, the Total Life Plan Designers. So not just introducing services using digital network, but we can provide that service face-to-face with our customers. So if there's a waiting anniversary coming up for certain customer, then you can offer, or you can suggest them to go to dine with the person's wife at the restaurant. And you can, of course, do that using a digital network, but also you can visit these customers in person and propose that kind of celebration. So you can promote the use of the service using a human network. So we would try this and that. And then we can do something that ordinary IT companies cannot do. So the things are changing very rapidly in this world. And thanks to our efforts, I think Dai-ichi Life Group and the Benefit One merged very nicely. At first, there are a lot of problems, but now all the employees are very positive about this merger and the turnover has dropped significantly. And there aren't many students who withdraw from working to looking with us. Today, there aren't -- there's a labor shortage, and it's very difficult to recruit people. But thanks to our cooperation with Dai-ichi Life, that problem has been solved. So Benefit One can help the companies reduce their turnover. And I think this is a solution we can sell. We would like to continue to increase our membership. And eventually, the service will not be limited to Japan, but we would like to provide such social solution that can provide the services to all people. So it's not easy, but if we keep on working, the market capitalization would be JPY 10 trillion or more. So we can -- we would like to continue to work on this. So that is all from me. Thank you very much for listening. [Statements in English on this transcript were spoken by an interpreter present on the live call]