1. 1 IFRS in Japan Takahiro Nagafune Takahiro Nagafune Tokio Marine & Nichido Fire insurance Co., Ltd. Tokio Marine & Nichido Fire insurance Co., Ltd. October 10, 2011 October 10, 2011

2. 2 IFRS in Japan 1. Introduction 2. Implementation 3. Future 4. Insurance

3. 3 IFRS in Japan 1. Introduction An interim Report by Financial Services Agency (FSA) (June, 2009) - Voluntary implementation of IFRS - Mandatory implementation of IFRS

4. 4 IFRS in Japan 1. Introduction An interim Report by FSA (June, 2009) 1) Voluntary Implementation - Date: Starting from March, 2010 - Entities: Listed Companies - Consolidated Financial Report Only Japanese Standards are applied to; - Single Report - Taxation

5. 5 IFRS in Japan 1. Introduction 2) Mandatory Implementation - Final decision is to be made in 2012 - Consolidated reports of all listed companies - At one time or gradually - At least three years for preparation - Starting from 2015 at the earliest An interim Report by FSA (June, 2009)

6. 6 IFRS in Japan 2. Implementation 1) Benefits for a company - Reduction of funding cost - Improvement of efficiency - Improvement of competitiveness

7. 7 IFRS in Japan 2. Implementation 2) Number - A company (as of March, 2010) - Three companies (as of March, 2011) - None of financial institutions - Among 3,600 listed companies

8. 8 IFRS in Japan 2. Implementation 3) Difficulties Companies are concerned about; - a lot of time and cost to prepare for the implementation - double standards after the implementation - IFRS for a consolidated report - JFRS for single / taxation reports Some companies will continue to use U.S. standards, which are irregularly permitted by FSA.

9. 9 IFRS in Japan 3. Future 1) Mandatory Implementation (in the interim report as of June, 2009) - Final decision is to be made in 2012 - At least three years for preparation - Starting from 2015 at the earliest

10. 10 IFRS in Japan 3. Future 2) Mandatory Implementation (comments by Minister of FSA as of June, 2011) - Mandatory Implementation will start in or after 2016 - At least five years for preparation

11. 11 IFRS in Japan 4. Insurance 1) IFRS for "Insurance Contracts" (IFRS 4) - Various comments for the exposure draft are under consideration - A revised exposure draft will be released in 2012

12. 12 IFRS in Japan 4. Insurance 2) Other Issues Concerned Other issues concerned with IFRS are; - Supervisory Solvency Assessment - ERM Consistency between the frameworks

13. 13 IFRS in Japan 4. Insurance 3) A company's preparation for IFRS - Building databases - Developing calculation systems

14. 14 IFRS in Japan 4. Insurance 3) A company's preparation for IFRS 2008 2009 2010 2011 2012 2013 Stock databases Flow databases Calculation systems Final revision

15. 15 IFRS in Japan 4. Insurance 4) Actuaries 16th EAAC "Venture into Uncertainty" "Capture Opportunities" Each actuary will have to handle various issues on; - IFRS - Supervisory Solvency Assessment - ERM

16. 16 IFRS in Japan Thank you. Thank you.