MS&AD_en

8/22 　Integration Synergies and Costs

Please turn to page 7. This slide has not changed much from the one presented in the Information Meeting in June. In the left graph, the dark-green bars above the horizontal line show the synergies. The light-green bars below the horizontal line show integration costs. As we have explained before, these synergies show improvements in efficiency, cost reductions, and increases in earnings, among other factors, due to the integration compared with our record in FY2008. Integration costs are temporary costs associated with the integration, in particular the cost of the new IT systems being developed. Needless to say, incidentally, if we upgrade our IT systems or add new functions in association with necessary revision of insurance products, if any, or the expansion of sales tactics, we might well take on new costs. As for the further reorganization of the existing two main domestic non-life insurance companies in the Group, which is apart from the subject of the present slide, though, we are extensively discussing which option to take for an optimum form.