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Consolidated ordinary revenues increased 11.7% year on year,to ¥364.9 billion, owing to increases in ordinary revenues from all thebusinesses: life insurance, non-life insurance and banking businesses.
Consolidated ordinary profit decreased 25.5% year on year,to ¥18.9 billion, owing to decreases in ordinary profit fromthe life insurance and the non-life insurance businesses, whereas ordinary
profit from the Banking business increased.
Profit attributable to owners of the parent was down 28.9% year on year,to ¥12.5 billion, due to the decrease in consolidated ordinary profit.

Sony Lifeʼs ordinary revenues increased 12.3% year on year,to ¥327.9 billion, due to an improvement of investment performance in theseparate account following a recovery in the financial market conditions.
Investment gains were recorded in FY17.1Q compared with investment
losses in FY16.1Q.
Ordinary profit decreased 32.3% year on year, to ¥15.8 billion, due to adeterioration in net gains/losses on derivative transactions to hedge market
risks for available-for-sale securities and lower gains on sale of securities in
the general account.
Net income decreased 39.1% year on year, to ¥10.1 billion.

(Left-hand graph)
New policy amount for the total of individual life insurance andindividual annuities decreased 11.4% year on year, to ¥1,115.8 billion.
This decrease was due mainly to lower sales of family income insurance
and term life insurance, despite favorable sales of U.S. dollardenominated insurance.
The number of new policies decreased 21.7% year on year,
to 117 thousand policies.
(Right-hand graph)
Annualized premiums from new policies decreased 21.2% year on year,to ¥16.1 billion, due mainly to lower sales of living benefit insurance andendowment insurance, despite favorable sales of U.S. dollar-denominatedinsurance.
Of which, the figure for third-sector products decreased 25.9% year onyear, to ¥3.1 billion.

Sony Lifeʼs policy amount in force which reflects new policy amount andlapse and surrender amount, is shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities increased 4.9% year on year, to ¥45.7 trillion.
The number of policies in force increased 3.2% year on year,to ¥7.35 million polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 4.6% year onyear, to ¥826.9 billion.
Of which, the figure for third-sector products was up 3.6% year on year,to ¥188.7 billion.

The lapse and surrender rate was down 0.11 percentage points year onyear, to 1.00%.

(Left-hand graph)
Income from insurance premiums was flat year on year,
amounting to ¥241.1 billion, due to a decrease in sales of single premium
whole life insurance although policy amount in force increased steadily.
(Right-hand graph)
Interest income and dividends increased 8.0% year on year,to ¥38.8 billion, reflecting an expansion in investment assets
along with business expansion.

(Left-hand graph)Core profit rose 77.7% year on year, to ¥24.9 billion, due to a decline in
the provision of policy reserves for minimum guarantees for variable life
insurance led by a recovery in the financial market conditions.
(Right-hand graph)
Ordinary profit decreased 32.3% year on year, to ¥15.8 billion.
This was due to a deterioration in net gains/losses on derivativetransactions to hedge market risks for available-for-sale securities and adecrease in the gain on sale of securities, as derivative transactions usedas hedges related to variable life insurance offset the above mentioned
gains in core profit.

The number of Lifeplanner sales employees as of June 30, 2017, was4,942, up 9 from March 31, 2017 and up 260 from June 30, 2016.

Here is a breakdown of Sony Lifeʼs general account assets as of June 30,
2017, compared with that as of March 31, 2017.

As of June 30, 2017, Sony Lifeʼs non-consolidated solvency margin ratio
was 2,620.4%, up 51.6 percentage points from March 31, 2017,remaining at a high level.

Sony Assuranceʼs ordinary revenues expanded 7.7% year on year, to¥28.0 billion, owing mainly to an increase in net premium written for
mainstay automobile insurance.
Ordinary profit decreased 17.1% year on year, to ¥2.3 billion, due
primarily to lower gains on sale of securities.
Net income decreased 17.5% year on year, to ¥1.6 billion.

(Left-hand graph)
The number of policies in force for the total of automobile insurance andmedical insurance increased 8.3% year on year, to 1.95 million policies.
Net premiums written increased 10.0% year on year, to ¥27.5 billion due
to stable sales of automobile insurance.
(Right-hand graph)
Ordinary profit decreased year on year as described before.
Adjusted ordinary profit is an profit indicator on a managerial accounting
basis. The figure is calculated by adjusting the amount ofprovision(reversal) for catastrophe reserve to ordinary profit.
Adjusted ordinary profit was ¥3.2 billion.

(Left-hand graph)
The Earned/Incurred (E.I.) loss ratio was down 0.4 percentage points
year on year, to 58.6%, due to a persistently low car accident ratio inautomobile insurance.
The net expense ratio was down 0.3 percentage points year on year,
to 25.9%, due to a proper control on overall operating expenses.
Consequently, the sum of the E.I. loss ratio and the net expense ratio
was down 0.7 percentage points year on year, to 84.5%.
(Right-hand graph)
The net loss ratio was down 3.3 percentage points year on year,to 50.8%.
This is different from the E.I. loss ratio, which reflects an increase ora decrease in provision for reserve for outstanding losses.
The combined ratio (the sum of the net loss ratio and the net expenseratio) was down 3.6 percentage points year on year, to 76.7%.

As of June 30, 2017, Sony Assuranceʼs non-consolidated solvency margin
ratio was 767.6%, rose 36.8 percentage points from March 31, 2017,
showing that Sony Assurance has maintained a financial soundness.

Sony Bankʼs consolidated ordinary revenues increased 5.3% year on year,to ¥9.7 billion, due to an increase in interest income on loans in line with afavorably growing balance of mortgage loans.
Consolidated ordinary profit increased 120.7% year on year, to ¥1.7 billion,
due to a decrease in operating expenses, especially in advertising expenses
for the card loan business.
On a non-consolidated basis, Sony Bankʼs ordinary revenues and ordinary
profit increased year on year as the same reasons as in the consolidatedresults.

We break down gross operating profit on a managerial accounting basis
to facilitate an understanding of operational sources of revenues andprofits.
(Left-hand table)
Net interest income increased 16.9% year on year, to ¥5.5 billion, led bya favorable growing balance of mortgage loans and an increase ininvestment income on foreign currencies.
Net fees and commissions was negative ¥0.6 billion, due to lower fees
and commissions associated with mortgage loans in comparison with thesame period of the previous fiscal year, when new mortgage loans weremore accumulated due to the impact of negative interest rates.
Consequently, gross operating profit on a core profit basis increased
4.6% year on year, to ¥4.9 billion. Net operating profit on a core profit
basis increased 143.4% year on year, to ¥1.0 billion, due to a decrease ingeneral and administrative expenses.
(Right-hand graph)
The yield on investment for FY17.1Q was 1.14%.
The yield on financing for FY17.1Q was 0.22%.
Consequently, interest spread for FY17.1Q was 0.93%.

(Left-hand graph)
As of June 30, 2017, deposits (the sum of Japanese yen and foreign
currency deposits) amounted to ¥2,147.8 billion, up ¥34.8 billion fromMarch 31, 2017. Of this amount, the yen deposit balance amounted to¥1,794.3 billion, up ¥29.4 billion from March 31, 2017, as yen ordinary
deposits increased due mainly to an increase in newly accumulated funds
via the increased number of accounts, as well as the conversion fromforeign currencies backed by yen depreciation.
The yen-denominated balance of foreign currency deposits amounted to¥353.5 billion, up ¥5.4 billion from March 31, 2017, due to a favorableexchange rate even after the negative impact of the conversion fromforeign currencies into yen led by a shift in the trend from yen
appreciation to yen depreciation.
.
(Right-hand graph)
The loan balance as of June 30, 2017 expanded ¥12.4 billion from March31, 2017, to ¥1,552.0 billion, due to a steady increase in mortgage loans,
despite a leveling off in demand for refinancing these loans.

(Left-hand graph)
As of June 30, 2017, the balance of securities amounted to ¥677.1 billion,up ¥45.8 billion from March 31, 2017. Sony Bank continuously invests inhighly rated bonds.
(Right-hand graph)
As of June 30, 2017, Sony Bankʼs non-consolidated capital adequacy ratio(domestic criteria) was 9.37%, down 0.38 percentage points from March31, 2017. Sony Bank maintains financial soundness.

Forecast of consolidated financial results for FY17 is unchanged from theforecast announced on April 28, 2017.

Sony Lifeʼs MCEV as of June 30, 2017 was ¥1,478.2 billion, up ¥37.2
billion form March 31, 2017, due to an acquisition of new policies and arise in interest rates in Japanese yen.
New business value for FY17.1Q(3M) was ¥12.2 billion, down ¥1.9 billion
form FY16.4Q(3M) , due to lower acquisition of new policies.
New business margin for FY17.1Q(3M) was 4.6%, up 0.7percentage
points from FY16.4Q(3M) , due mainly to a change in product mix.

The risk amount based on economic value as of June 30, 2017 amountedto ¥941.3 billion, down ¥39.2 billion from March 31, 2017, due mainly toa revision in the risk factors of market-related risk.
ESR as of June 30, 2017 was 160%, up 9 percentage points from March
31, 2017.