Business Performance during the Fiscal Year under Review
The Group's consolidated business performance for the fiscal year under review was as follows.
With regard to cash flows in the fiscal year under review, net cash flows provided by operating activities increased by ¥560.6 billion over the previous fiscal year to ¥236.7 billion, due in part to a rebound from an increase in foreign currency insurance contracts returns of Mitsui Sumitomo Primary Life Insurance Co., Ltd. in the previous fiscal year. Net cash flows from investing activities decreased by ¥115.9 billion over the previous fiscal year to ¥(71.9) billion, due in part to a decrease in proceeds from sales and redemption of securities, despite a decrease in expenditure on the purchase of securities. In addition, net cash flows provided by financial activities decreased by ¥20.7 billion over the previous fiscal year to ¥58.5 billion, due in part to an increase in expenditure on redemption of corporate bonds, despite an increase in proceeds from the issuance of corporate bonds. As a result, cash and cash equivalents at the end of the fiscal year under review have increased by ¥261.7 billion from the end of the previous fiscal year to ¥2,256.2 billion.
For long-term investment funds, the Group utilizes its own funds and raises funds from external sources through issuing corporate bonds and long-term borrowings from financial institutions.
With regard to the liquidity of funds, in preparation for the possibility that cash flow may worsen due to cash outflows used for the payment of claims, etc. or due to unstable market conditions, etc., the Group will ensure appropriate cash flow by maintaining sufficient liquidity and evaluating liquidity with consideration of cash-flow trends, taking into account both assets and liabilities.
Progress Toward Numerical Management Targets and Forecasts
Group Adjusted Profit is expected to decrease by 47.1 billion yen mainly due to a decrease in the domestic non- life and domestic life insurance, despite an increase in the international business.