Consolidated Financial Summary (Japanese GAAP)
for the Six Months Ended September 30, 2018
November 12, 2018
Sony Financial Holdings Inc.
(URL: https://www.sonyfh.co.jp/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Shigeru Ishii, President and Representative Director
Inquiries:
Yasuo Hasegawa, General Manager-Investor Relations Dept.
(Telephone: +81-3-5290-6500)(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the six months ended September 30, 2018
(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change

860,895

21.5

47,22844.6

31,77047.1

708,324

12.1

32,669(12.0)

21,596(14.0)For the six months ended
September 30, 2018
For the six months ended
September 30, 2017
Note: Comprehensive income:

Profit Attributable to Owners of
the Parent

Ordinary Profit

For the six months ended September 30, 2018:¥19,205 million:(22.4)%For the six months ended September 30, 2017:¥

24,737 million:

30.8%

Net Income per
Share(Fully Diluted)

Net Income per
Share
For the six months ended
September 30, 2018
For the six months ended
September 30, 2017

Yen

Yen

73.04

73.02

49.65

49.65

(2) Financial condition
Total Assets
As of September 30, 2018
As of March 31, 2018
Note: Net assets attributable to shareholders:

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

13,062,017
12,401,446

618,604
625,406

4.7
5.0

As of September 30, 2018:¥ 616,716 million

As of March 31, 2018:¥ 623,661 million

2. Dividends
Dividend per Share

Record Date
For the year ended
March 31, 2018
For the year ending
March 31, 2019
For the year ending
March 31, 2019
(forecast)

1st QuarterYen

2nd Quarter
Yen

3rd Quarter
Yen

－

0.00

－

0.00

Note: Changes in dividend forecast since the most recent public announcement: None

Year-End
Yen

Annual Total
Yen

－

60.00

60.00

－

62.50

62.50

3. Forecast of consolidated financial results for the year ending March 31, 2019
(Percentage figures represent changes from the results of the previous fiscal year.)
Profit Attributable to
Net Income per
Ordinary Revenues
Ordinary Profit
Owners of the Parent
Share
For the year ending
March 31, 2019

Millions of yen% change

Millions of yen% change

Millions of yen% changeYen

1,578,000

4.9

83,00024.2

55,000

6.0

126.44

Note: Changes in forecast of financial results since the most recent public announcement: None

4. Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of
consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of September 30, 2018:
435,062,983 shares
As of March 31, 2018:
435,027,513 shares(b) Number of treasury shares
As of September 30, 2018:35,775 shares
As of March 31, 2018:35,775 shares(c) Weighted-average number of shares
For the six months ended September 30, 2018:
435,006,128 shares
For the six months ended September 30, 2017:434,967,663 shares
Status of interim audit proceduresThis document is exempt from interim audit procedures by certified public accountants or audit firm.

Content of Supplemental Materials
I. Consolidated Financial Statements
1. Consolidated Balance Sheets ……………………………………………………………………………

2

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ……………………………………………………………………

4(Consolidated Statements of Comprehensive Income) …………………………………..………………

7

3. Consolidated Statements of Changes in Net Assets ……………………………………………………

8

4. Note on Going Concern………………...……………………...……………………...…………………

11

5. Material Changes in Stockholders’ Equity………………...……………………...……………………..

11

6. Changes in Significant Subsidiaries during the Period…………………………………………………

11

7. Segment Information ……………………………………...……………………………..……………… 12

II. Attachment
Consolidated Financial Results for the Six Months Ended September 30, 2018 and Sony Life’s MCEV
as of September 30, 2018…………………………………………

15* The conference call for explaining the Sony Financial Group financial results will be held at 16:00 (Tokyo),
November 12, 2018. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on November 12, 2018 after 15:00, the translation of
the conference call (audio) on November 13 and the Q&A summary (text) at a later date on Earnings Releases
and Presentation Materials page on our website:
https://www.sonyfh.co.jp/en/financial_info/results/index.html* On November 12, 2018, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiariesーSony Life InsuranceCo., Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank)ーwill announce
their financial results for the six months ended September 30, 2018. SFH has prepared an English-language
summary of those Japanese announcements made by the above subsidiaries, solely for the convenience of nonJapanese readers.

- 1 -I. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018¥¥

AssetsCash and due from banks

327,633

379,438

Call loans and bills bought

65,50086,200

Monetary claims purchased

5,378

3,271

291,582

288,081

Securities

9,581,206

10,141,654

Loans

Money held in trust

1,785,877

1,832,055

Tangible fixed assets

106,051

104,506

Intangible fixed assets

35,68437,676Due from reinsurers

934

711

Foreign exchanges

9,346

9,968

168,736

149,517

Net defined benefit asset

3,426

3,557

Deferred tax assets

21,242

26,626

Other assets

Reserve for possible loan losses(1,152)

Total Assets

¥

- 2 -

12,401,446(1,249)¥13,062,017

(Millions of yen)
As of March 31, 2018

As of September 30, 2018¥¥

Liabilities
Policy reserves and others
Reserve for outstanding claims

8,763,349

9,197,337

74,71280,221

8,683,153

9,111,766

5,484

5,349

Due to agencies

1,873

1,646

Due to reinsurers

5,563

5,093

Policy reserves
Reserve for policyholders’ dividends

Deposits

2,159,246

2,252,480

Call money and bills sold

96,000121,280

Borrowed money

173,944

183,902

Foreign exchanges

228

112

Bonds payable

20,00020,000

Other liabilities

470,501

574,903

Reserve for employees’ bonuses

3,906

3,765

Net defined benefit liability

33,17933,576

Reserve under the special laws

48,13549,189Reserve for price fluctuations

48,13549,189

0

15

109

109

11,776,039

12,443,413

Common stock

19,927

19,963

Capital surplus

191,157

191,193

Retained earnings

283,911289,582

(55)

(55)

494,941

500,684

133,991

120,798

Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets

Treasury stock
Total shareholders’ equity
Net unrealized gains (losses) on other securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes

(902)

(666)

Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,929)(1,660)Total accumulated other comprehensive income

128,719

116,032

Subscription rights to shares

97

117

Non-controlling interests

1,648

1,770

625,406

618,604

Total Net Assets
Total Liabilities and Net Assets

¥

- 3 -

12,401,446¥

13,062,017

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Ordinary Revenues
Ordinary Revenues from the Life Insurance Business
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income

For the six months ended
September 30, 2017

For the six months ended
September 30, 2018¥¥708,324

860,895

630,822

777,970479,629

540,924

478,596

539,796

1,033

1,128

144,945

231,430

Interest income and dividends

77,99181,806

Income from money held in trust, net

2,246

2,246

Gains on trading securities, net

22－

Gains on sale of securities

0

3,316

Gains on redemption of securities

1

－

2,078

21,3980－62,604

122,662

6,247

5,614

54,79857,76153,81756,55253,78656,519

30

32

956

1,172

Interest income and dividends

667

678

Gains on sale of securities

320

526

Transfer to interest and dividends on deposits of premiums

(30)

(32)

24

36

19,714

21,911

Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

14,005

15,433

Interest income on loans

8,457

8,627

Interest income and dividends on securities

5,510

6,771

Interest income on call loans and bills bought－

0Interest income on deposits with banks

31

31

Other interest income

53Fees and commissions

3,033

4,042

Other operating income

2,104

2,133

Other ordinary income
Other
Other ordinary income

570

301

2,988

3,251

2,988

3,251
(Continued)- 4 -(Millions of yen)

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the six months ended
September 30, 2017

For the six months ended
September 30, 2018¥¥675,654

813,666

607,188741,913

187,384

200,482

Insurance claims

45,15745,222

Annuity payments

5,618

6,347

Insurance benefits

40,40043,073

Surrender payments

90,15998,856

Other payments

1,673

1,928

Reinsurance premiums

4,375

5,054

317,735

426,877

1,104

3,726

316,630

423,15000Investment expenses

18,03926,654

Interest expenses

35

577

Losses on trading securities, net－

11

Losses on sale of securities

034

Losses on valuation of securities

－

4,026

Losses on redemption of securities

2－

14,73919,7045

1

Insurance claims and other payments

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends

Losses on derivatives, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others

876

800

2,380

1,497

Operating expenses

67,941

71,372Other ordinary expenses

16,086

16,526

Other investment expenses

Ordinary Expenses from the Non-life Insurance Business

49,84351,929Underwriting expenses

36,53838,733Net losses paid

24,937

26,830Loss adjustment expenses

3,672

4,031

Net commission and brokerage fees

669

625

Provision for reserve for outstanding losses and claims

1,046

1,782

Provision for underwriting reserves

6,211

5,463

1

1

Losses on sale of securities－

0

Other investment expenses

1

1

13,302

13,1931

1

Investment expenses

Operating, general and administrative expenses
Other ordinary expenses(Continued)- 5 -(Millions of yen)

Ordinary Expenses from the Banking Business

For the six months ended
September 30, 2017

For the six months ended
September 30, 2018¥¥

Interest expenses

15,002

16,177

3,884

3,993

2,582

3,139

Interest expenses on call money and bills sold

(35)

3

Interest on payables under repurchase agreements－

64Interest on borrowed money

00Interest expenses on bonds

21

6

1,310

775

5

3

Fees and commissions

2,199

2,778

Other operating expenses

49

106

8,822

9,091

47

207

3,620

3,646

3,620

3,646

32,66947,228－0Interest expenses on deposits

Interest expenses on interest rate swaps
Other interest expenses

General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on disposal of fixed assets

－

0

1,039

1,115

Losses on disposal of fixed assets

85

51

Impairment losses

010Provision for reserve under the special laws

919

1,053

Provision for reserve for price fluctuations

919

1,053

34

－

297

62

Income Before Income Taxes

31,332

46,052

Income Taxes - Current

11,105

14,659

Income Taxes - Deferred(1,353)(498)

Total Income Taxes

9,752

14,160

Profit21,57931,891(16)

120

Extraordinary Losses

OthersProvision for Reserve for Policyholders’ Dividends

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

¥

- 6 -

21,596¥

31,770(Consolidated Statements of Comprehensive Income)(Millions of yen)

Profit

For the six months ended
September 30, 2017

For the six months ended
September 30, 2018¥¥

21,57931,891Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, netof taxes

2,702(13,192)

Net deferred gains (losses) on hedging instruments, net of taxes

127

236

Remeasurements of defined benefit plans, net of taxes

327

269

Total other comprehensive income

3,157

Comprehensive income¥

24,737(12,686)¥

19,205(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 7 -24,752

19,083(15)122

3. Consolidated Statements of Changes in Net Assets
For the six months ended September 30, 2017
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

Treasury stock¥ 19,900¥ 195,277¥ 255,062

Issuance of new shares

27

27

Dividends from surplus－¥

Total shareholders’ equity(81)¥ 470,157

－

－

55

－

(23,922)－(23,922)－－

21,596－

21,596

－

(5)

－

26

21

－

5

(5)

－

－

－

－

(92)

－

(92)

－

(4,147)－－(4,147)

－

－

－

－

－

27

(4,119)(2,423)26(6,488)¥ 19,927¥ 191,157¥ 252,638(55)¥ 463,668

Changes during the period

Profit attributable toowners of the parent
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesAdjustments due tochange of scope of
consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥(Continued)- 8 -Total accumulated other comprehensive income
Net unrealized Net deferred gains
Total accumulated Subscription rights Non-controlling
gains (losses) on(losses) on
Remeasurements
Land revaluation,otherto shares
interests
available-for-salehedgingof defined benefit
net of taxes
comprehensive
securities, net of
instruments,
plans, net of taxes
incometaxes
net of taxes

Balance at the beginningof the period¥ 134,849¥(1,154) ¥(1,465) ¥(2,756) ¥ 129,472

¥

49

¥

Total net assets

1,460¥ 601,139

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

55

Dividends from surplus

－

－

－

－

－

－

－

(23,922)

－

－

－

－

－

－

－

21,596

－

－

－

－

－

－

－

21

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

(92)

－

－

－

－

－

－

－

(4,147)

2,702

127

－

325

3,156

12

80

3,249

2,702

127

－

325

3,156

12

80

(3,238)(1,027) ¥(1,465) ¥1,541¥ 597,900

Profit attributable toowners of the parent
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
sharesAdjustments due tochange of scope of
consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥ 137,551

¥

- 9 -

(2,430) ¥ 132,628

¥

61

¥

For the six months ended September 30, 2018
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

Treasury stock¥ 19,927¥ 191,157¥ 283,911

Issuance of new shares

35

35

Dividends from surplus－¥

Total shareholders’ equity(55)¥ 494,941

－

－

71

－

(26,099)－(26,099)－－

31,770－31,770

－

－

－

－

－

35

35

5,671

－

5,742

¥ 19,963¥ 191,193¥ 289,582(55)¥ 500,684

Changes during the period

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥Total accumulated other comprehensive income
Net unrealized Net deferred gains
Total accumulated Subscription rights Non-controlling
gains (losses) on(losses) on
Remeasurements
Land revaluation,otherto shares
interests
available-for-salehedgingof defined benefit
net of taxes
comprehensive
securities, net of
instruments,
plans, net of taxes
incometaxes
net of taxes

Balance at the beginning of
the period¥ 133,991¥(902) ¥

(2,439) ¥(1,929) ¥ 128,719

¥

97

¥

Total net assets

1,648¥ 625,406

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

71

Dividends from surplus

－

－

－

－

－

－

－

(26,099)

－

－

－

－

－

－

－

31,770(13,192)

236

－

268

(12,687)20

122(12,545)(13,192)

236

－

268

(12,687)20

122(6,802)(666) ¥

(2,439) ¥1,770¥ 618,604

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥ 120,798¥- 10 -(1,660) ¥ 116,032

¥

117

¥

4. Note on Going Concern
Not applicable.

5. Material Changes in Stockholders’ Equity
Not applicable.

6. Changes in Significant Subsidiaries during the Period
Not applicable.
Although specified subsidiaries have not changed, Sony Financial Ventures Inc.,a subsidiary that invests in venture companies,
was established and entered the scope of consolidation in the first half of the fiscal year ending March 31, 2019. The company’s
results are included in the “other” category in the consolidated statements of income.

- 11 -

7. Segment Information(1) Outline of reportable segments
The Sony Financial Group consists of three reportable segments: the life insurance business, the non-life insurance businessand the banking business.
●The life insurance business consists of Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd., and SA
Reinsurance Ltd.
●The non-life insurance business consists of Sony Assurance Inc.
●The banking business consists of Sony Bank Inc., Sony Payment Services Inc. and SmartLink Network Hong Kong
Limited.
(2) Segment information by reportable segment
For the six months ended September 30, 2017
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets¥

630,822
1,609
632,432¥
24,9259,207,448¥¥¥

54,798054,798
4,587
194,312Bankingbusiness

Total¥

19,714104
19,819¥3,712
2,592,552

Other

¥

705,335
1,715
707,050¥
33,225
11,994,313

¥

¥

Total

2,988
－
2,988
(631)
14,370¥708,324
1,715
710,039¥
32,593
12,008,683

3,567
78,249
35

2,033
667
－

1,236
14,005
3,923

6,838
92,921
3,958

307
0
275

7,146
92,921
4,233(1,221)－－(1,221)－(1,221)

9,838

－

－

9,838

－

9,838

2,737

¥

1,067

¥

1,843

¥

5,647

¥

77

¥

5,725

(Note) “Other” consists of the nursing care business, which is not a reportable segment.
For the six months ended September 30, 2018
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets¥

777,970
1,402
779,373¥
37,421
10,068,492

¥

¥

¥

57,761
0
57,7625,449
210,016

Bankingbusiness

Total¥

21,911
126
22,038¥4,669
2,795,224

Other

¥

857,6431,530
859,173¥
47,54013,073,734

¥

¥

Total

3,251
－
3,251
(394)
21,995¥860,895
1,530
862,425¥
47,145
13,095,729

3,775
81,806
577

1,211
679
－

1,253
15,433
4,032

6,239
97,919
4,610

306
1
234

6,546
97,920
4,845

(400)

－

－

(400)

－

(400)

11,919－－11,919－11,919

2,763

¥

2,674

¥

1,476

¥

6,913

¥

79

(Note) “Other” consists of the nursing care business and venture capital operations, which is not a reportable segment.

- 12 -¥

6,992

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Millions of yen
For the six months ended
September 30, 2017
Totals of reportable segments¥

For the six months ended
September 30, 2018

707,050

Other¥859,173

2,988(1,715)Adjustments for intersegment transactions¥

Ordinary revenues in statement of income

3,251(1,530)708,324¥

860,895

Millions of yen
For the six months ended
September 30, 2017
Totals of reportable segments¥

For the six months ended
September 30, 201833,225¥47,540Other
Adjustments for intersegment transactions

(631)
1

(394)
－

Amount not allocated to reportable segments

74

82

¥

Ordinary profit in statement of income

32,669¥47,228Millions of yen
For the six months ended
September 30, 2017

For the six months ended
September 30, 2018¥¥

Totals of reportable segments

11,994,313
14,370Other
Adjustments for intersegment transactions

13,073,734
21,995(56,437)
27,035

Amount not allocated to reportable segments¥

Assets in balance sheets(66,917)
33,205

11,979,281¥

13,062,017

Millions of yen
For the six months ended
September 30, 2017
Total
Depreciation¥

6,838 ¥

Other

Adjustments

307

¥

18

For the six months ended
September 30, 2018
Consolidated
financialstatements
¥

Total

7,164 ¥

6,239 ¥

Other

Adjustments

306

¥

20

Consolidated
financialstatements
¥

6,567

Interest income anddividends

92,9210(257)

92,663

97,9191(0)

97,920Interest expenses

3,958

275

(38)

4,194

4,610

234

(39)

4,806

(1,221)－－(1,221)

(400)

－

－

(400)

9,838

－

－

9,838

11,919－－11,9195,647 ¥

77

5,727 ¥

6,913 ¥

79

Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andintangible fixed assets

¥

¥

1

¥

(3) Information on impairment loss on fixed assets and goodwill by reportable segment
Not applicable.

- 13 -

¥

24

¥

7,017

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ in significant respects
from the financial information reported by Sony Corporation, SFH’s parent company, which prepares its financial statements inaccordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.**
Sony Financial Ventures Inc.**
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.
** Proud Life Inc. is included in the scope of consolidation from the second quarter ended September 30, 2017.
Sony Financial Ventures Inc. is included in the scope of consolidation from the second quarter ended September 30, 2018.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forwardlooking statements may include-but are not limited to-words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,”“assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other materials
released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions andjudgments made by the management of Sony Financial Group companies, and are based on information that is currently available tothem. As such, they are subject to various risks and uncertainties, and actual business results may vary substantially from theforecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on
forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking statements or pro
forma information in light of new information, future events or other findings. The information contained in this press release does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever inJapan or abroad.

- 14 -

II. Attachment
Content of Presentation Material
Consolidated Financial Results for the Six Months Ended September 30, 2018 andSony Life’s MCEV as of September 30, 2018
・ Consolidated Operating Results for the Six Months Ended September 30, 2018 (FY18.1H)……

3・ Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2019 (FY18)……

25

・ Sony Life’s MCEV and ESR as of September 30, 2018 ……………………………………………………

27

・ Appendix ……………………………………………………………………………………………………

30- 15 -

Attachment

Presentation Material

Consolidated Financial Results
for the Six Months Ended September 30, 2018
andSony Lifeʼs MCEV as of September 30, 2018

Sony Financial Holdings Inc.
November 12, 2018
Sony Financial Holdings Inc.

All Rights Reserved

Content
 Consolidated Operating Results for the Six Months Ended September 30, 2018
(FY18.1H)

P.3

 Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2019 (FY18)

P.25

 Sony Lifeʼs MCEV and ESR as of September 30, 2018

P.27

 Appendix

P.30

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Group. Any statements contained herein that are not historical facts are forward-looking statements or pro forma
information. Forward-looking statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,”“strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities,business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in othermaterials released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions
and judgments made by the management of Sony Financial Group companies, and are based on information that is currently
available to them. As such, they are subject to various risks and uncertainties, and actual business results may vary substantiallyfrom the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue
reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking
statements or pro forma information in light of new information, future events or other findings. The information contained in thispresentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract orcommitment whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc.

All Rights Reserved2

Attachment

Consolidated Operating Results
for the Six Months Ended September 30, 2018
(FY18.1H)

Sony Financial Holdings Inc.

3

All Rights Reserved

Highlights of Consolidated Operating Performance (1)＜Consolidated＞
Ordinary revenues

Life insurance
business

Ordinary profit

860.8+21.5%

Non-life
insurancebusiness
Bankingbusiness

708.3
47.2

Intersegment
adjustments*+44.6%
Consolidated

32.6(JPY bn)

FY17.1H

FY18.1H(JPY bn)

FY17.1H

FY18.1H

Ordinary revenues

632.4

779.3

+146.9+23.2%

Ordinary profit

24.9

37.4

+12.4

+50.1%

Ordinary revenues

54.7

57.7

+2.9

+5.4%

Ordinary profit

4.5

5.4

+0.8

+18.8%

Ordinary revenues

19.8

22.0

+2.2

+11.2%

Ordinary profit

3.7

4.6

+0.9

+25.8%

Ordinary revenues

1.2

1.7

+0.4

+35.2%

Ordinary profit

(0.5)

(0.3)

+0.2

-

Ordinary revenues

708.3

860.8

+152.5+21.5%

Ordinary profit

32.6

47.2

+14.5

+44.6%

Profit attributableto owners of theparent

21.5

31.7

+10.1

+47.1%

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Proud Life Inc. and Sony Financial Ventures Inc. are included in the scope of consolidation from
FY17.2Q and FY18.2Q, respectively.
(Note) Comprehensive income : FY17.1H: ¥24.7 billion, FY18.1H: ¥19.2 billion(JPY bn)
Consolidated

Net assets
Total assets

Sony Financial Holdings Inc.

Mar. 18

Sep. 18

Change from Mar. 18

625.4

618.6

(6.8)

(1.1%)

12,401.4

13,062.0+660.5+5.3%

All Rights Reserved

4Attachment

Highlights of Consolidated Operating Performance (2) Life Insurance Business︓Ordinary revenues grew year on year due to an increase ininsurance premiums in line with a steady rise in the policy amount in force and favorable
investment performance in the separate account. Ordinary profit increased year on year due
mainly to a recording of gains on sale of securities in the general account, an increase inprofit on higher policies in force and a decline in provision of policy reserves for productswith higher surrenders, which more than offset the effect of an impairment loss relating toavailable-for-sale securities in the general account.

 Non-life Insurance Business: Ordinary revenues expanded year on year, owing to anincrease in net premiums written for mainstay automobile insurance. Ordinary profit
increased year on year due mainly to a decline in the net expense ratio, despite the negative
impact of a higher loss ratio, driven by natural disasters.

 Banking Business︓Both ordinary revenues and ordinary profit rose year on year due toincreases in interest income on investment securities and on loans in line with a growing
balance of mortgage loans.

 Ordinary revenues increased 21.5% year on year, to ¥860.8 billion, owing to increases inordinary revenues from all the businesses: life insurance, non-life insurance, and banking
businesses. Ordinary profit increased 44.6% year on year, to ¥47.2 billion, owing toincreases in ordinary profit from all the businesses mentioned above. Profit attributable toowners of the parent was up 47.1% year on year, to ¥31.7 billion due to the increase inordinary profit.
Sony Financial Holdings Inc.

5

All Rights Reserved

Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues
Ordinary profit+23.2%

779.2

632.3
37.7
+44.8%(JPY bn)
Ordinary revenues

632.3

779.2

+146.9+23.2%

542.0

+61.5

+12.8%

Investment income

145.1

231.4

+86.2

+59.4%

Interest income and dividends

78.2

81.7

+3.5

+4.5%

Gains on sale of securities

0.0

3.3

+3.3

-

Foreign exchange gains, net

2.0

21.3

+19.3

+929.5%

62.6

122.6

+60.0

+95.9%

606.2

741.5

+135.2+22.3%

Insurance claims and other payments

187.3

200.4

+13.0

+7.0%

Provision for policy reserves and others

317.7

426.8

+109.1+34.4%

Investment expenses

18.1

26.6

+8.4

+46.6%

-

4.0

+4.0

-

14.7

19.7

+4.9

+33.7%

Devaluation losses on securities

FY17.1H

FY18.1H◆ Both ordinary revenues and ordinary profit increased
year on year.
◆ Income from insurance premiums increased due mainly
to a steady rise in the policy amount in force.
◆ Investment income increased due mainly to an increasein gains on separate account.
◆ Ordinary profit increased year on year due mainly to arecording of gains on sale of securities in the generalaccount, an increase in profit on higher policies in force
and a decline in provision of policy reserves for
products with higher surrenders, which more thanoffset the effect of an impairment loss relating toavailable-for-sale securities in the general account.

Change480.4

Gains on separate accounts, net(JPY bn)

FY18.1H

Income from insurance premiums

Ordinary expenses

26.0

FY17.1H

Losses on derivatives, net

68.1

71.4

+3.3

+4.9%

Ordinary profit

Operating expenses

26.0

37.7

+11.6

+44.8%Net income

16.9

25.4

+8.4

+49.8%

Mar. 18

Sep. 18

Securities

8,765.9

9,257.8+491.8+5.6%

Policy reserves

8,566.0

8,989.2+423.1

+4.9%

492.7

480.3

(12.4)(2.5%)(9.3%)(JPY bn)

Net assets
Net unrealized gains on other securities
Total assets
Separate account assets

Sony Financial Holdings Inc.

All Rights Reserved

Change from Mar. 18

124.9

113.2

(11.6)

9,567.6

10,070.5+502.8+5.3%

1,128.8

1,289.8+161.0+14.3%

6

Attachment

Overview of Operating Performance:
Sony Life (Non-consolidated)
FY18.1H

Change＜Reasons for changes＞

2,230.7

3,159.7+41.6%◆ Increased due to favorable salesof family income insurance.

Lapse and surrender amount

873.4

1,587.3+81.7%

Lapse and surrender rate

1.93%

3.36%

+1.43pt

Annualized premiums from new policies

32.3

37.9

+17.3%Of which, third-sector products

5.9

7.3

+22.0%(JPY bn)

FY17.1H

New policy amount(JPY bn)

FY17.1H

FY18.1H

ChangeGains from investment, net (General account)

64.4

82.1

+27.5%

Core profit

43.8

57.8

+31.8%

Positive spread

9.3

8.7

(6.5%)(JPY bn)
Policy amount in force

Sep. 18

47,253.4

48,506.6

+2.7%

848.8

864.6

+1.9%

191.8

194.9

+1.6%

2,624.3%

2,618.9%(5.4pt)Annualized premiums from insurance in force
Of which, third-sector products
Non-consolidated solvency margin ratio

ChangeFrom
Mar. 18

Mar. 18◆Increased due to cancellations ofexisting policies from certain
customers taking out new policies
such as family income insurance.
This shift resulted from premium
revisions, owing to the revision of
the standard mortality tables.
◆ Increased due to favorable salesof U.S. dollar-denominatedinsurance and individual annuities.
◆ Increased due mainly to a decline
in the provision of policy reserves
for minimum guarantees forvariable life insurance, an increasein profit on higher policies in force
and a decline in provision of policy
reserves for products with higher
surrenders.

Note: Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, annualized premiums
from new policies, policy amount in force, and annualized premiums from insurance in force are calculated as
the total of individual life insurance and individual annuities. The lapse and surrender rate shows the ratio
derived by dividing the amount of lapses and surrenders, not adjusted for policy amount decreases, increases,
and reinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc.

7

All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (1)
Number and Amount of New Policies

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)
New policy amount(Individual Life Insurance + Individual Annuities)
Annualized premiums from new policies

Number of new policies（Thousands（JPY tn）

293
280

4.0

of policies)（JPY bn）

300＋22.1%

40

240

2.23

2.0

＋17.3%

32.3
200

3.0

37.9

38.7

3.15
2.44

Of which, third-sector30＋41.6%

20
100

1.0

10

＋22.0%

8.1
0

0.0
FY16.1H

FY17.1H

FY18.1H

Sony Financial Holdings Inc.

5.9

7.3

FY17.1H

FY18.1H

0
FY16.1H

All Rights Reserved

8

Attachment

Operating Performance :Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)
Policy amount in force

60

45（Millionsof policies) （JPY bn）

7.56

7.42
46.2

＋4.9%

Annualized premiums from insurance in force

Number of policies in force＋3.7%（JPY tn）(Individual Life Insurance + Individual Annuities)

＋1.7%

7.69

8

47.2

800

6

＋1.9%

600

30

4

400

15

2

200

0

0
Mar. 18

864.6

848.8

＋3.7%

48.5
＋2.7%

Sep. 17833.5

Of which, third-sector

＋2.8%

189.6

191.8

Sep. 17Mar. 18

＋1.6%

194.9

0

Sep. 18

Sony Financial Holdings Inc.

All Rights Reserved

Sep. 18

9

Operating Performance :Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate (Annual)

Lapse and surrender rate (1H)

（%）

8

6

4.97
4.27

4

＋1.43pt

2.14
2

3.36

1.93

0
FY16

FY17

FY18

*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

Sony Financial Holdings Inc.

All Rights Reserved

10Attachment

Operating Performance :Sony Life (Non-consolidated) (4)Interest Income and Dividends

Income from Insurance Premiums(JPY bn)(JPY bn)

542.0

500

80

72.2

480.4

477.4

81.7

78.2
＋4.5%

＋12.8%

60

400

300

40

200
20
100

0

0
FY16.1H

FY17.1H

FY16.1H

FY18.1H

Sony Financial Holdings Inc.

FY17.1H

FY18.1H

11

All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (5)Ordinary Profit

Core Profit(JPY bn)

Core profit

Adjusted core profit

60(JPY bn)

40

4…38.6

35.7

33.2

49.6

＋31.8%

37.7

40

57.8

＋44.8%

30

26.0+28.4%

20

30.6
20

10

0
FY16.1H

FY17.1H

0

FY18.1H

FY16.1H(Reference) Impact on core profit(JPY bn)
Positive spread
Provision of policy reserves forminimum guarantees for variable
life insurance (*)
Adjusted core profit (**)

FY17.1H

FY18.1H(Reference) Main differences from core profit
FY16.1H

FY17.1H

FY18.1H(JPY bn)

FY16.1H

FY17.1H

FY18.1H

6.5

9.3

8.7

Capital gains (losses) excluding gains
or losses on hedges (*)

5.0

(5.6)

(3.3)

(11.6)

(4.0)

(0.4)

Gains (losses) on hedges of variable
life insurance

1.0

(8.5)

(12.3)

35.7

38.6

49.6

Provision of contingency reserve (*)

(3.4)

(3.6)

(4.4)

*“Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
**Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves for minimum guarantees for variable life insurance)

Sony Financial Holdings Inc.

All Rights Reserved

12

Attachment

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees＋173(Number)

5,142

4,933

4,942

4,974

4,968

Mar. 17

Jun. 17

Sep. 17

Dec. 17

5,000

5,147

5,135
＋12

4,500

4,000

3,500

0
3,000

Sony Financial Holdings Inc.

Mar. 18

Jun. 18

Sep. 18
13

All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (7)Breakdown of General Account Assets
Mar. 18<Asset management review>Sep. 18

Amount%Amount%Japanese bonds(including JGBs)

7,281.1

86.3%

7,516.1

85.6%

Japanese stocks

38.4

0.5%

35.2

0.4%

Foreign bonds

366.5

4.3%

476.3

5.4%

Foreign stocks

30.3

0.4%

26.5

0.3%

Money held in trust

270.5

3.2%

267.0

3.0%

Policy loans

189.4

2.2%

193.6

2.2%

Real estate*

92.3

1.1%

91.5

1.0%

Cash and call loans

40.8

0.5%

58.3

0.7%

Others

129.1

1.5%

115.8

1.3%

8,438.8

100.0%

8,780.7

100.0%(JPY bn)

Total

We have continued to accumulate
ultralong-term bonds to match the liability
characteristics of insurance policies withlong-term maturities with the aim of
reducing interest rate risk.
<Bond duration>
Mar. 17 21.3 years
Mar. 18 21.4 years
Sep. 18 21.1 years■ Investment in the money held in trust is
mainly into Japanese bonds.
■ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount : Sep. 18・・・88.6%（Mar. 18・・・89.5%）*Real estate is the total of land, buildings, and construction in progress.

Sony Financial Holdings Inc.

All Rights Reserved

14

Attachment

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit(JPY bn)

＋5.4%

54.7

＋18.8%

5.4

4.5(JPY bn)

FY17.1H

FY18.1H◆Both ordinary revenues and ordinary profit
increased year on year.
◆Ordinary revenues expanded owing to anincrease in net premium written for mainstay
automobile insurance.
◆Ordinary profit increased year on year due
mainly to a decline in the net expense ratio,
despite the negative impact of a higher loss
ratio, driven by natural disasters.

FY18.1H

Change

54.7

57.7

+2.9

+5.4%

Underwriting income

53.8

56.5

+2.7

+5.1%

Investment income

0.9

1.1

+0.2

+22.6%

Ordinary expenses

50.2

52.3

+2.1

+4.2%

Underwriting
expenses

36.7

38.9

+2.2

+6.0%

Operating generaland administrative
expenses

13.4

13.3

(0.1)

(0.8%)

Ordinary profit

4.5

5.4

＋0.8

＋18.8%Net income

3.3

3.8

＋0.5

+16.1%

Ordinary revenues

57.7

FY17.1H(JPY bn)

Mar. 18

Sep. 18

Change from
Mar. 18

Underwriting reserves

117.0

122.5

+5.4

+4.7%

Net assets

33.1

33.9

+0.8

+2.4%

Total assets

204.3

209.9

+5.6

+2.8%

Sony Financial Holdings Inc.

15

All Rights Reserved

Overview of Operating Performance:
Sony Assurance(JPY bn)

FY17.1H

FY18.1H<Reasons for changes>

ChangeDirect premiums written

53.1

55.9

+5.3%

Net premiums written

53.7

56.5

＋5.1%

Net losses paid

24.9

26.8

+7.6%

Underwriting profit

3.6

4.2

+17.5%Net loss ratio

53.2%

54.6%

+1.4ptNet expense ratio

26.6%

25.1%

(1.5pt)Combined ratio

79.8%

79.7%

(0.1pt)◆ Increased in its mainstay
automobile insurance.

◆ Declined due mainly to adecrease in system-related
expenses.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

FY17.1H

FY18.1H

ChangeE. I. loss ratio

59.6%

61.2%

＋1.6ptE. I. loss ratio +Net expense ratio

86.2%

86.3％

＋0.1pt◆ Rose due to natural disasters.

Note: E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.]Mar. 18
Non-consolidated
solvency margin ratio

782.1%

Sep. 18

Change from
Mar. 18821.0%

Sony Financial Holdings Inc.

＋38.9pt

All Rights Reserved

16

Attachment

Sony Assuranceʼs Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY17.1H

FY18.1H

Change

102

110

+7.0%

－

－

－

Personal accident

4,348

4,361

+0.3%

Voluntary
automobile

48,66451,478

+5.8%

－

－

－

53,11655,950+5.3%(JPY ｍn)

Fire
MarineCompulsory
automobile liability
Total

Net losses paid
FY18.1H

ChangeFire23+63.8%

Marine32(36.4%)

Personal accident

1,361

1,402

+3.0%

Voluntary
automobile

22,91524,749

+8.0%

655

671

+2.6%

24,937

26,830+7.6%

Compulsory
automobile liability
Total

FY18.1H

Change

8

8

+8.5%

(0)

－

－

Personal accident

4,452

4,441

(0.3%)

Voluntary
automobile

48,54551,336

+5.7%

780

733

(6.0%)

53,78656,520+5.1%

FireMarineCompulsory
automobile liability
Total*Medical insurance is included in personal accident.

FY17.1H(JPY ｍn)

FY17.1H(JPY ｍn)

Sony Financial Holdings Inc.

17

All Rights Reserved

Operating Performance:
Sony Assurance (1)Ordinary Profit andAdjusted Ordinary Profit

Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Personal accident insurance

Others(JPY bn)

Adjusted ordinary profit

Ordinary profit(JPY bn)

60

48.9

56.5

53.7

7.2

＋15.1 %

6.2

6

5.4

4.9

＋5.1 %＋18.8 %

4

40

4.5
3.3

2
20
0
FY16.1H

FY17.1H

FY18.1H*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

0
FY16.1H

FY17.1H

FY18.1H(Reference) Provision for catastrophe reserve(JPY bn)

Provision for catastrophe reserve
Note: Most of personal accident insurance is medical insurance.

FY16.1H

1.5

FY17.1H

1.7

FY18.1H

1.7*Provision for catastrophe reserve is described as positive amount.

Sony Financial Holdings Inc.

All Rights Reserved

18

Attachment

Operating Performance:
Sony Assurance (2)Earned/Incurred Loss Ratio +Net Expense Ratio
Earned/Incurred loss ratio(Reference) Combined Ratio＜参考＞(Net Loss Ratio+ Net Expense Ratio)
Net loss ratio

Net expense ratio

（%）

（%）
100

Net expense ratio

90.6

100

89.2

89.9

86.3

86.2

85.8

＋0.1pt

80

84.4

83.3

79.7

79.8

80

(0.1pt)

60

62.3

60.7

63.3

59.6

＋1.6pt

60

61.2

57.5

55.9

56.7

53.2
＋1.4pt

40

54.6

40

(1.5pt)20(1.5pt)

20

28.3

28.5

26.6

26.6

25.1

FY16

FY17

FY16.1H

FY17.1H

FY18.1H

28.3

28.5

26.6

26.6

25.1

FY16

FY17

FY16.1H

FY17.1H

FY18.1H

00
Notes:
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve foroutstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]Sony Financial Holdings Inc.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

19

All Rights Reserved

Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)＜Consolidated＞
Ordinary revenues
Ordinary profit

19.8<Consolidated>
FY17.1H

FY18.1H

Ordinary revenues

19.8

22.0

+2.2

+11.2%

Ordinary profit

3.7

4.6

+0.9

+25.7%

Profit attributable to ownersof the parent

2.4

3.0

+0.6

+27.7%

FY17.1H

FY18.1H(JPY bn)+11.2 %

+25.7 %

220
22.0

4.6

<Non-consolidated>(JPY bn)

3.7(JPY bn)

FY17.1H

FY18.1H＜Consolidated＞◆Both ordinary revenues and ordinary profit rose year
on year due to increases in interest income on
investment securities and on loans in line with agrowing balance of mortgage loans.
＜Non-consolidated＞◆Both gross operating profit and net operating profit
increased.
・Net interest income increased due to increases ininterest income on investment securities and loans.

ChangeChangeOrdinary revenues

18.0

19.9

＋1.8

+10.3%

Gross operating profit

10.5

11.8

+1.2

+11.6%Net interest income

10.1

11.4

+1.3

+13.0%Net fees and commissions

(1.5)

(1.6)

(0.0)

－

Net other operating income

2.0

2.0

(0.0)

(1.4%)

General and administrative
expenses

7.6

7.6

(0.0)

(0.2%)Net operating profit

2.9

4.1

＋1.1

＋40.2％

Ordinary profit

3.4

4.2

+0.8

+23.9%Net income

2.3

2.9

+0.6

+26.6%

Mar. 18

Sep. 18

85.7

85.7

+0.0

+0.1%

6.0

5.1

(0.8)

(14.4%)

2,635.0

2,778.6＋143.5＋5.4%(JPY bn)
Net assets
Net unrealized gains onother securities, net of taxes
Total assets

Sony Financial Holdings Inc.

All Rights Reserved

Change from
Mar. 18

20

Attachment

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)Change from
Mar. 18<Reasons for changes>

Sep. 17Mar. 18

Sep. 18

Customer assets

2,284.8

2,343.0

2,436.1

+93.0

+4.0%

Deposits

2,165.2

2,219.3

2,308.9

+89.6

+4.0%

Yen

1,800.5

1,814.7

1,909.8

+95.1

+5.2%

364.6

404.6

399.1

(5.4)

(1.4%)

Investment trusts

119.6

123.7

127.1

＋3.4

+2.8%

Loans outstanding

1,559.3

1,596.3

1,638.3

＋41.9

+2.6%

Mortgage loans

1,477.9

1,525.5

1,574.8

+49.2

+3.2%

18.9

18.8

18.5

(0.3)

(1.7%)(JPY bn)

Foreign currencies

Card loans
Others

*1

62.4

51.8

45.0

(6.8)

(13.3%)

1.29mm

1.35mm

1.42mm

＋0.07
mm

+5.2%

Non-performing assets ratio*2（Based on Financial
Reconstruction Law）

0.15%

0.12％

0.12％

(0.01pt)

Non-consolidated capital
Adequacy ratio *3（domestic criteria）

9.43%

10.45%

10.43%(0.02pt)

Number of accounts◆ Increased due mainly to an increasein newly accumulated funds via theincreased number of accounts, aswell as a conversion from foreign
currencies backed by yen
depreciation.
◆ Decreased due to a conversion and atransfer from foreign ordinary
deposits into yen deposits led by yen
depreciation, despite an increase inforeign currency time deposits.
◆ Rose due to a steady increase inmortgage loans.

*1 Loans in others include corporate loans of ¥44.9 billion*2 Non-performing loans (loans based on the Financial Reconstruction Act) /Total loan exposure*3 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on page 24.

Sony Financial Holdings Inc.

21

All Rights Reserved

Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis(JPY bn)
Gross operating profit
Net interest income*1<Reference> Interest Spread

FY17.1H

FY18.1H

10.5

11.8

(Managerial Accounting Basis)

Change+1.2+11.6%

①

11.3

12.5

+1.2

+11.3%Net fees and commissions*2 ②

(1.3)

(1.3)

(0.0)

―

0.5

0.6

+0.0

+5.5%

Gross operating profit(core profit)(A) ＝①＋②

10.0

11.2

+1.1

+12.0%

Operating expenses and other
Expenses
③

7.6

7.7

+0.0

+0.6%

Net operating profit(core profit) ＝(A)－③

2.3

3.4

+1.1

+49.4%Net other operating income*3■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency swap
transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), mainly consistsof profits and losses for bond and derivative dealing transactions.
■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on investment（%）

Yield on financing

Interest spread

1.17

1.13
1

0.91

+0.02pt

0.93

0.5

0.22

0.25

0
FY17.1H

FY18.1H

Note: Interest spread=(Yield on investment)-(Yield on financing)Sony Financial Holdings Inc.

All Rights Reserved

22

Attachment

Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen Deposits

Foreign currency deposits(JPY bn)

Mortgage loans

2,308.9

2,219.3

2,112.9
2,000

Loans

＋89.6
404.6

348.0

Others(JPY bn)

399.1

1,500

1,500

1,638.3

1,596.3

1,539.6

70.7

87.1

63.5

+41.9

*

1,000

1,000
1,764.9

1,452.4

1,909.8

1,814.7

1,525.5

1,574.8

Mar. 18

Sep. 18500
500

0Mar. 17Mar. 18

0

Sep. 18

Mar. 17*Corporate loans of ¥44.9 billion. Card loans of ¥18.5 billion.

Sony Financial Holdings Inc.

23

All Rights Reserved

Operating Performance:
Sony Bank (Non-consolidated) (2)Non-Consolidated Capital Adequacy Ratio

Balance of Securities by Credit Rating
AAA
BBB(Domestic Criteria)

AA
A
Others(JPY bn)

631.2
600

674.2

+58.2

（%）

732.5
14.4

15

18.1

26.1
315.3

10

306.8

9.75

10.45

10.43
10.43
(0.02pt)

303.0
400
94.9
109.8
200

5

135.3

160.2

232.4

300.2

0

0
Mar. 17Mar. 18

Sep. 18

Mar. 17Mar. 18

Sep. 18

Note: Calculated based on the standard FSA Notification No. 19 (2006), which
establishes standards based on Article 14-2 of the Banking Act of Japan for
determining the capital adequacy of a bank in light of the assets held by the bank.

Sony Financial Holdings Inc.

All Rights Reserved24

Attachment

Forecast of Consolidated Financial Results
for the Fiscal Year Ending March 31, 2019
(FY18)

Sony Financial Holdings Inc.

25

All Rights Reserved

Forecast of Consolidated Financial Results for FY18
Forecast of consolidated financial results for FY18 is unchanged from the forecast announced on April 27, 2018
（JPY bn）
Ordinary revenues

FY17（Actual）

FY18（Forecast）

ChangeFY18.1H（Actual）

Progress
rate

1,503.6

1,578.0

+4.9%

860.8

54.6%

1,351.2

1,416.1

+4.8%

779.3

55.0%

Non-life insurance business

110.0

112.3

+2.0%

57.7

51.4%

Banking business

39.9

42.8

+7.2%

22.0

51.5%

66.8

83.0

+24.2%

47.2

56.9%

Life insurance business

54.1

70.9

+30.9%

37.4

52.8%

Non-life insurance business

6.5

6.5

(1.1%)

5.4

83.8%

Banking business

7.1

7.0

(2.0%)

4.6

66.7%

51.8

55.0

+6.0%

31.7

57.8%

Life insurance business

Ordinary profit

Profit attributable to owners of the parent<Segment information for ordinary revenues and ordinary profit>■Life insurance, Non-life insurance, and Banking businesses
Although both ordinary revenues and ordinary profit exceeded our initial expectations in FY18.1H, we maintain our full-year forecasts
for FY18, taking into consideration the business environment from FY18.3Q onward.

Sony Financial Holdings Inc.

All Rights Reserved26

Attachment

Sony Lifeʼs MCEV and ESR
as of September 30, 2018

Some parts of the calculations of MCEV adopted simplified method except for those as of March 31, 2018.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.
*In this part, figures, ratios and percentages changes have been rounded.

Sony Financial Holdings Inc.

27

All Rights ReservedSony Lifeʼs MCEV
ChangefromMar. 18

ChangefromJun. 18

Mar. 18

Jun. 18

Sep. 18

1,633.2

1,593.5

1,715.3+82.1+121.8Adjusted net worth

1,786.1

1,804.3

1,560.0(226.1)(244.3)

Value of existing business(152.9)(210.8)155.3+308.2+366.1(JPY bn)

FY17.4Q(3M)

FY18.1Q(3M)

FY18.2Q(3M)

FY18.1H(6M)

New business value

21.2

21.9

22.6

44.6

New business margin

6.1%

7.1%

6.9％

7.0％

(JPY bn)

MCEV

 Reasons for changes in MCEV
・MCEV as of September 30, 2018 increased ¥121.8 billion from June 30, 2018, due mainly to an increase in interest rates
in Japanese yen.
 New business value / New business margin
・New business value for FY18.2Q (3M) was ¥22.6 billion, due to a favorable acquisition of new policies.
・New business margin for FY18.2Q (3M) was down 0.2pt from FY18.1Q (3M), due mainly to a change in product mix.
Notes:
1. Calculated MCEV as of June 30, 2018 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2018.
2. New business value and new business margin are calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised in March 31, 2018. For details of the revision in
the insurance risk measurement method and others, please refer to the Presentation Materials “Consolidated Financial Results for the Fiscal Year Ended March 31, 2018
and Sony Lifeʼs Preliminary MCEV as of March 31, 2018.”*Please refer to the appendix page 41-44 for trend on bond yields and yield curves.

Sony Financial Holdings Inc.

All Rights Reserved28

Attachment

Sony Lifeʼs ESR(JPY bn)

Mar. 18

Jun. 18

Sep. 18

Insurance risk

497.5

506.8

488.7

Market-related risk

380.6

379.6

407.6

275.3

270.4

300.7

Operational risk

31.0

32.1

33.0

Counter party risk

2.6

2.6

2.7

(182.0)(183.1)(187.8)

729.7

738.0

744.1

Of which, interest rate risk

Variance effect
The risk amount based on
economic value(JPY bn)

MCEV + Frictional costs
ESR

Mar. 18

Jun. 18

Sep. 18

1,655.8

1,619.2

1,731.6

227%

219%

233%

 The risk amount based on economic value as of September 30, 2018 amounted to ¥744.1 billion, up ¥6.1 billion
from June 30, 2018, due mainly to an increase in interest rate risk.
 ESR as of September 30, 2018 was 233%, up 13pt from June 30, 2018.
Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
3. Risk amount excluding the variance effect within market-related risk.
4. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.

Sony Financial Holdings Inc.

All Rights Reserved

29

AppendixSony Financial Holdings Inc.

All Rights Reserved30

Attachment

Recent Topics
 Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 12% of the amount of new mortgage loans for FY18.1H (6M)
Sony Life accounts for 20% of the balance of mortgage loans as of September 30, 2018
*Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance sold by Sony Life
Sony Life accounts for 5% of new automobile policies for FY18.1H (6M)
*Sony Life started handling automobile insurance in May 2001.

 Highlights on and after FY18.2Q
2018-09-22

Sony Life opened the financial advisory retail shop in Singapore

2018-10-01

Sony Bank began offering new mortgage loan, "Fixed-rate Select Mortgage Loan" and new group credit life
insurance with disease protection rider

2018-10-11

Sony Financial Ventures announced the launch of its first venture capital fund with Global Brain Corporation,
one of the largest venture capital firms in Japan

2018-10-15

Sony Assurance began selling internet-only fire insurance

2018-10-15

Sony Lifecare announced to open its 4th “SONARE” brand nursing care home in Suginami-city, Tokyo
in autumn 2019Sony Financial Holdings Inc.

31

All Rights ReservedSony Lifeʼs Product Portfolio
Annualized Premiums from New Policies by Product
FY17（12M）¥73.0 billion

Yen whole
life 6%

Endowment/
Annuities
29%

U.S. dollardenominatedwhole life 13%
円建終⾝
円建終⾝
14%U.S. dollar19%
denominatedsingle-premium
whole life
insurance 6%

Protection-type（term-life）
47％

FY18.1Q（3M）¥18.7 billion

Yen wholelife
3%
Endowment/
Annuities
30%

U.S. dollardenominatedwhole life
14%
円建終⾝
U.S. Dollar14%
denominatedsingle-premium
whole life
insurance 8%

FY18.2Q（3M）¥19.2 billion
U.S. dollardenominatedwhole life 14%

Yen wholelife
3%
Endowment/
Annuities
31%

U.S. Dollardenominatedsinglepremium
whole life
insurance
7%

Protection-type（term-life）
46％

Protection-type（term-life）
45％

Sony Financial Holdings Inc.

All Rights Reserved

32

Attachment

Sony Lifeʼs Asset Management
Purchase Securities in the General AccountJapanesestocks 0.4%

Foreign

FY17.1H（6M） bonds

12.0%

FY18.1H（6M）
Japanesestocks 0.4%

JGBs
56.5%

Japanese
corporate
bonds
31.1%

FY17（12M）

Foreignbonds
24.0%Japanesestocks 0.5%

Foreign
bonds
18.5%

社債
11.9%

JGBs
58.0%

Japanese
corporate
社債
bonds
25.9%
17.6%

JGBs
55.1%

Japanese
corporate
bonds
国債
25.9%

85.3%

Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)

Sony Financial Holdings Inc.

33

All Rights ReservedSony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)
Mar. 17（JPY bn）

Carrying
amountMar. 18

Fair value

Net unrealized
gains (losses)

Carrying
amountSep. 18

Fair value

Net unrealized
gains (losses)

Carrying
amountFair value

Net unrealized
gains (losses)

Held-to-maturity securities

6,068.6

7,514.2

1,445.5

6,467.9

8,050.6

1,582.6

6,663.4

7,961.2

1,297.8

Policy reserve matching bonds

277.3

303.3

25.9

401.9

436.8

34.8

522.9

540.8

17.9

Available-for-sale securities

896.5

1,069.9

173.3

921.9

1,091.1

169.1

955.1

1,107.7

152.5

Japanese bonds(including JGBs)

852.6

1,013.3

160.7

847.0

1,002.1

155.0

862.7

1,002.3

139.5

Japanese stocks

13.6

27.0

13.3

13.6

30.6

16.9

11.2

25.9

14.7

Foreign securities

30.0

29.1

(0.8)

61.0

58.1

(2.9)

80.9

79.0

(1.8)

Other securities

0.1

0.3

0.1

0.1

0.2

0.1

0.1

0.2

0.1

7,242.5

8,887.5

1,644.9

7,791.9

9,578.6

1,786.7

8,141.5

9,609.8

1,468.3

Total

Note: The above table includes money held in trust other than trading-purpose securities.

Valuation gains (losses) on trading-purpose securities
Mar. 17
Balance sheet
amountMar. 18

Net valuation gains (losses)
recorded in income

2.0（JPY bn）(0.1)

Balance sheet
amountSep. 18

Net valuation gains (losses)
recorded in income－

Sony Financial Holdings Inc.

(0.0)

All Rights Reserved

Balance sheet
amount1.4

Net valuation gains (losses)
recorded in income

(0.0)

34

Attachment

Sony Lifeʼs Interest Income and Dividends (Details)（JPY mn）

FY17.1H

FY18.1H

Cash and deposits

Change00+145.4%

Japanese bonds(including JGBs)

61,87564,207+3.8%

Japanese stocks

282

295

+4.5%

Foreign securities

7,027

8,988

+27.9%

Other securities

124

293

+135.4%

Loans

3,285

3,396

+3.4%

Real estate

5,455

4,347

(20.3%)

191

269+41.3%

78,24181,798+4.5%

Others
Total

Sony Financial Holdings Inc.

35

All Rights ReservedSony Lifeʼs Capital Gains/Losses（JPY mn）
Capital losses
Losses on trading securities, net

FY17.1H

FY18.1H

16,25740,355－

19

Income from trading securities, net

Losses on sale of securities…(3)034Devaluation losses on securities…(4)

－

4,026

14,73919,704Losses on hedges of variable life insurance…(1)8,555

12,304Losses on hedges of available-for-sale securities…(2)

2,767

2,628

Losses on U.S. dollar-denominated insurance…(5)

2,489

4,461

－

－

1,518

16,570853

16,570Losses on derivatives, net

Foreign exchange losses, net
Other capital losses
Losses on U.S. dollar-denominated insurance（the provision of policy reserves for foreignexchange fluctuations）…(5)FY17.1H

FY18.1H

2,098

24,715

19－

Gains on sale of securities…(3)

0

3,316

Gains on derivatives, net

－

－

2,078

21,398

1,583

21,280－－（JPY mn）
Capital gains

Foreign exchange gains, net
Gains on U.S. dollar-denominatedinsurance(foreign exchange gains in separate
accounting）…(5)Other capital gains

Net capital gains (losses)(14,159) (15,639)

Note: The figures of income (losses) from trading securities, net, gains (losses) on derivatives andforeign exchange gains (losses), net were recorded after offsetting gains and losses of each item.
FY17.1H

FY18.1H(1) Gains (Losses）on hedges of variable life insurance(8,555)(12,304)(2) Gains (losses）on hedges of available-for-salesecurities(2,767)(2,628)（JPY mn）(3) Gains (losses) on sale of securities

0

3,282

(4) Devaluation losses on securities－(4,026)(1,759)249(5) Gains (losses) on U.S. dollar-denominated insuranceSony Financial Holdings Inc.

All Rights Reserved36

Attachment

Sony Lifeʼs Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Individual Life Insurance + Individual Annuities)（JPY bn）

2,000

1,842.4
1,674.7

1,750
1,500
1,250

1,485.0

1,457.7
1,260.0

1,189.0
1,050.7

1,115.8

1,114.8

FY17.1Q

FY17.2Q

1,214.7

1,000
750
500
250
0
FY16.1Q

FY16.2Q

FY16.3Q

FY16.4Q

Sony Financial Holdings Inc.

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

37

All Rights ReservedSony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)

Annualized premiums from new policies

Of which, third-sector(JPY bn)

25

23.9
20.5

20

19.5

18.2
15.3

15

21.1
18.7

16.1

16.2

3.1

2.8

3.3

3.6

3.3

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

19.2

10

5
4.1

3.9

FY16.1Q

FY16.2Q

0

4.4

3.1
FY16.3Q

FY16.4Q

Sony Financial Holdings Inc.

All Rights Reserved

3.9
FY18.2Q

38

Attachment

Sony Lifeʼs Quarterly Trend on New Business Value
Quarterly Trend on New Business Value(JPY bn)

25
19.9

20

21.2

21.9

22.6

17.2
14.1

15

12.2

10.2

10
5.0

5
0
(0.2)
(5)
FY16.1Q

FY16.2Q

FY16.3Q

FY16.4Q

FY17.1Q

FY17.2Q

FY17.3Q

FY17.4Q

FY18.1Q

FY18.2Q

Note: New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.

Sony Financial Holdings Inc.

39

All Rights Reserved

Operating Performance : AEGON Sony Life Insurance◆AEGON Sony Life Insurance sells individual variable annuities.

Number and Amount of Policies in Force

Number and Amount of New Policies
New policy amount(JPY bn)40

Number of new polices [ ]

41.3
[7.9]

Policy amount in force(Thousandsof policies)(JPY bn)

15

600

Number of policies in force [ ]

519.7

520.6

[89.9][92.5]

525.8[93.8](Thousandsof policies)

120

25.6
30

[5.5]

10

400

80

5

200

40

0

0

14.5
[2.9]

20

10

0
FY16.1H

FY17.1H

FY18.1H

Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance(JPY bn)

FY17.1H

FY18.1H

0
Sep. 17Mar. 18

Sep. 18

ChangeAEGON Sony Life Insurance

(2.4)

(1.7)

＋0.6

SA Reinsurance

(0.0)

1.1

＋1.2

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance andSA Reinsurance are recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.

Sony Financial Holdings Inc.

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Attachment

Trend on JGB Yields (Par rate)
1.20%

10 year
20 year

1.00%

30 year
40 year

0.80%

0.60%

0.40%

0.20%

0.00%
Mar. 18

Apr. 18

May. 18

Jun. 18

Jul. 18

Aug. 18

Sep. 18

Jul. 18

Aug. 18

As of the end of each monthMar. 18

Apr. 18

May. 18

Jun. 18

Sep. 18

10 year

0.04%

0.06%

0.04%

0.04%

0.05%

0.11%

0.13%

20 year

0.53%

0.53%

0.51%

0.51%

0.53%

0.62%

0.66%

30 year

0.74%

0.75%

0.72%

0.72%

0.74%

0.83%

0.89%

40 year

0.89%

0.88%

0.86%

0.85%

0.86%

0.97%

1.03%

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41

All Rights Reserved

Trend on Risk-free Rate (Japanese yen/Par rate)
2.00%
Convergence
period:20 yearMar. 18
1.50%

Jun. 18
Sep. 18

1.00%

0.50%

0.00%
Last liquid point:
40 year(0.50%)-0.50%
1×

10

20

30

40

50

60

70

80

year

year

year

year

year

year

year

year

year

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).

Sony Financial Holdings Inc.

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Attachment

Trend on U.S. Dollar Bonds Yields (Par rate)
3.30%
10 year3.20%

20 year
30 year

3.10%
3.00%
2.90%
2.80%
2.70%
2.60%
2.50%
Mar. 18

Apr. 18

May. 18

Jun. 18

Jul. 18

Aug. 18

Sep. 18

Jul. 18

Aug. 18

As of the end of each monthMar. 18

Apr. 18

May. 18

Jun. 18

Sep. 18

10 year

2.74%

2.95%

2.86%

2.86%

2.96%

2.86%

3.06%

20 year

2.85%

3.02%

2.93%

2.91%

3.02%

2.93%

3.14%

30 year

2.97%

3.12%

3.03%

2.99%

3.08%

3.02%

3.21%

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All Rights Reserved

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.50%
Convergence
period: 30 year

3.00%

2.50%
Mar. 18
Jun. 18
Sep. 18

2.00%

Last liquid point:
30 year
1.50%
1×

10

20

30

40

50

60

70

80

year

year

year

year

year

year

year

year

year

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).

Sony Financial Holdings Inc.

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Attachment

Detail of Consolidated Adjusted ROE

FY17
(12M)

FY17.1H(6M)

FY18.1H(6M)

Consolidated Adjusted ROE

6.1％

2.8%

3.3%

(Sony Life) Core ROEV*

5.9％

2.6％

3.1％

(Sony Assurance) Adjusted ROE

16.1％

10.5％

10.5％

(Sony Bank) ROE

5.5％

2.9%

3.6%

*The figures for FY17 and FY17.1H excluded the impact of the revision in the insurance risk measurement method and others
for Sony Life.

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Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Adjusted capital (Denominator）

Adjusted profit（Numerator)
Sony Financial Group（consolidated）(JPY bn） FY2017

FY17.1H

FY18.1H

98.8

44.9

60.0

FY17.1H

FY18.1H

Adjusted profit (consolidated)
Sony Life (non-consolidated) (JPY bn）

FY17

New business value *1

70.4

29.3

44.5

Expected existing business
contribution *1

16.3

8.5

7.1

Adjusted profit

86.7

Sony Assurance(JPY bn）

FY17

37.9

51.7

FY17.1H

FY18.1H

Net income

4.8

3.3

3.8

Provision amount for catastrophe
reserve (after tax)

2.4

1.2

1.2

Provision amount for reserve forprice fluctuations (after tax)

0.0

0.0

0.0

Adjusted profit

7.3

4.5

5.1

Sony Bank (consolidated)(JPY bn）

Profit attributable to owners of theparent

FY174.7

FY17.1H

FY18.1H

2.4

3.0

Sony Financial Group（consolidated）(JPY bn）

Adjusted capital (consolidated)
Sony Life (non-consolidated)(JPY bn）①MCEV as of the beginning of the
fiscal year

FY17

FY17.1H

FY18.1H

1,607.6

1,597.4

1,797.7

FY17

FY17.1H

FY18.1H

1,441.0

1,441.0

1,633.1

23.1

23.1

26.2

③MCEV as of the end of the period *2*3

1,536.5

1,523.0

1,715.2

Adjusted capital

1,477.2

1,470.5

1,661.0

FY17

FY17.1H

FY18.1H②Dividends paid（①－②＋③）/２

Sony Assurance(JPY bn）①The average amount of net assets
during the period

33.1

31.0

33.9

②The average amount of catastrophe
reserve (after tax) during the period

15.0

13.8

16.3

③The average amount of reserve forprice fluctuations (after tax) during theperiod

0.1

0.1

0.1

Adjusted capital （①＋②＋③）

45.2

43.5

49.4

FY17.1H

FY18.1H

83.3

87.2

Sony Bank (consolidated)(JPY bn）

Adjusted capital（The average amountof net assets during the period）

FY17

85.1

*1. Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY17.1H and FY18.1H.
*2. Please keep in mind that the validity of these calculations has not been verified by outside specialists.
*3. The figures for FY17 and FY17.1H excluded the impact of the revision in the insurance risk measurement method and others.
Note: The figures on this page unit have been truncated. Therefore, some figures may differ from other pages.

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46

Attachment

Definition of Consolidated Adjusted ROE
Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.
Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision
amount for reserve for pricefluctuations, in each case②
after taxes＋

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year, ineach case after taxes
⑤

＋

＋

①

④

＋

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③③

The average amount of net
assets during the fiscal year⑥⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥

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Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500

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