Consolidated Financial Summary (Japanese GAAP)
for the Year Ended March 31, 2015
May 15, 2015
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Katsumi Ihara, President and Representative Director
Inquiries:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the year ended March 31, 2015
(1) Operating results
Ordinary Revenues
For the year ended
March 31, 2015
For the year ended
March 31, 2014

Ordinary Profit

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,352,325

2.4

90,062

18.3

54,41934.4

1,320,456

4.9

76,136(3.9)

40,504(10.1)

Note: Comprehensive Income:For the year ended March 31, 2015: ¥90,707 million:
For the year ended March 31, 2014: ¥44,794 million:

Net Income per
Share

Net Income per
Share(Fully Diluted)

Yen

For the year ended
March 31, 2015
For the year ended
March 31, 2014102.5 ％
(53.4)％Net Income on
Shareholders'EquityYen

Ordinary Profit on
Total Assets

Ordinary Profit on
Ordinary Revenues

%

%

%

125.10

—

10.7

1.0

6.7

93.11

—

9.0

0.9

5.8

Notes: Equity in earnings (losses) of affiliates:

For the year ended March 31, 2015: ¥(1,506) million
For the year ended March 31, 2014: ¥(1,538) million(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of March 31, 2015

9,545,868

550,672

5.8

1,262.94

As of March 31, 2014

8,841,382

467,050

5.3

1,070.75

Notes: Shareholders' equity:

As of March 31, 2015: ¥549,380 million
As of March 31, 2014: ¥465,775 million(3) Cash flows

For the year ended
March 31, 2015
For the year ended
March 31, 2014

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Millions of yen

Millions of yen

Millions of yen

Cash and Cash
Equivalents at end of
fiscal year
Millions of yen

425,656(445,431)(13,087)

207,422

601,738(549,346)(13,522)240,279

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2014
For the year ended
March 31, 2015
For the year ending
March 31, 2016
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

AnnualDividend
AmountDividend
Payout
Ratio

Dividend on
Net Assets

Millions of yen

%

%

—

0.00

—

30.00

30.00

13,049

32.2

2.9

—

0.00

—

40.00

40.00

17,399

32.0

3.4

—

0.00

—

55.00

55.00

42.0

3. Forecast of consolidated financial results for the year ending March 31, 2016
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

For the year ending
March 31, 2016

Net Income attributable toparent company

Ordinary Profit

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,300,000(3.9)

85,000(5.6)

57,0004.7

Net Income per
Share
Yen

131.03

4. Notes(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying changes inscope of consolidation): None
(2) 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: Yes(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
Notes: For details, please refer to the section entitled “V．Consolidated Financial Statements” under “5. Notes to the Consolidated Financial
Statements” under “1) Changes in accounting policies” on page on 22.

(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of March 31, 2015:
As of March 31, 2014:(b) Number of treasury shares
As of March 31, 2015:
As of March 31, 2014:(c) Weighted-average number of shares
For the year ended March 31, 2015:
For the year ended March 31, 2014:

435,000,000 shares
435,000,000 shares
55 shares
1 share434,999,945 shares
434,999,999 shares

Audit of Financial Statements
This earnings report is exempt from audit procedure based upon the Financial Instruments and Exchange Act. Audit procedures areunderway as of the date of this report.

Content of Supplemental Materials
I.

II.
III.

IV.
V.

Qualitative Information and Financial Statements
1.

Qualitative Information on Consolidated Operating Performance・・・・・・・・・・・・・・

3

2.

Qualitative Information on Consolidated Financial Position・・・・・・・・・・・・・・・・

6

3.

Basic Policy on Returns to Shareholders and Dividends for the Fiscal
Year Ended March 31, 2015, and the Fiscal Year Ending March 31, 2016・・・・・・・・・・・・

6

Status of the Corporate Group・・・・・・・・・・・・・・・・・・・・・・・・・・
Management Policies

61.

Company’s Basic Management Policies・・・・・・・・・・・・・・・・・・・・・・・・・・・

8

2.

Key Management Benchmarks・・・・・・・・・・・・・・・・・・・・・・・・・・・

8

3.

Mid- to Long-Term Management Strategies・・・・・・・・・・・・・・・・・・・・・・

9

4.

Tasks Ahead for the Company・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10

Basic Views on Selection of Accounting Standards・・・・・・・・・・・・・・・・ 11
Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 122.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・ 17
3.

Consolidated Statements of Changes in Net Assets・・・・・・・・・・・・・・・・・・・・ 18

4.

Consolidated Statements of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20

5.

Notes to the Consolidated Financial Statements
1) Changes in accounting policies・・・・・・・・・・・・・・・・・・・・・・・・ 22
2) Changes in presentation method・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
3) Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23
4) Financial Instruments・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 28
5) Investments in Securities･・・・・・・・・・・・・・・・・・・・・・・・・・・・ 31
6) Investments in Monetary Trusts・・・・・・・・・・・・・・・・・・・・・・・・・・・ 33
7) Derivative financial instruments・・・・・・・・・・・・・・・・・・・・・・・・・・・ 34
8) Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 35

VI.

Attachment
Consolidated Financial Results for the Year Ended March 31, 2015 and Sony Life’s PreliminaryMarket Consistent Embedded Value as of March 31, 2015・・・・・・・・・・・・・・・・・・ 37* The Conference Call for explaining the Sony Financial Group financial results for the fiscal year ended
March 31, 2015, will be held at 16:30 (Tokyo), May 15, 2015.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on May 15, 2015 after 15:00, and its Q&A
summary at a later date on Earnings Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/en/financial_info/results1* We will upload the press releases on Sony Life’s Market Consistent Embedded Value as of March 31, 2015,
scheduled as below.
･Full report: Scheduled to be uploaded on May 21, 2015 at 15:00 (Tokyo)
Please see further details at our website: http://www.sonyfh.co.jp/index_en.html* On May 15, 2015, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiaries: Sony Life Insurance Co.,
Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce its
financial results for the fiscal year ended March 31, 2015. SFH prepared English-language summaries of
those Japanese announcements made by the above subsidiaries, solely for convenience of non-Japanesereaders.

2

I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
1) Analysis of Operating Performance
During the fiscal year ended March 31, 2015, the Japanese economy was affected in the first half by a demand backlash
prompted by the consumption tax increase. In the second half, however, the government’s growth strategies led to higher
corporate earnings, and the employment and income scenario improved. As a result, the economy continued along a path ofmodest recovery. In the financial markets, the Bank of Japan continued its policy of quantitative and quantitative monetaryeasing and the Government Pension Investment Fund (GPIF) revised its asset management ratios. These factors affected
prices in the Japanese stock market, which rose up to the end of the fiscal year. On foreign exchange markets, the yen
continued to depreciate significantly against the U.S. dollar. Furthermore, Japanese long-term interest rates trended generally
downward.
Against this backdrop, the Sony Financial Group provided high-quality services with the aim of becoming one of the mosthighly trusted financial services groups. The Group also implemented various measures to satisfy increasingly diverse
customer needs.
Consequently, as for its operating results, consolidated ordinary revenues rose 2.4% compared with the previous fiscal
year, to ¥1,352.3 billion, owing to increases in ordinary revenues from all the businesses: life insurance, non-life insurance
and banking. Consolidated ordinary profit increased 18.3% year on year, to ¥90.0 billion.
After accounting for extraordinary losses, provision for reserve for policyholders’ dividends and income taxes, net income forthe fiscal year ended March 31, 2015, was up 34.4% year on year, to ¥54.4 billion, reflecting the rise in ordinary profit and adecrease in extraordinary losses due to the change of the calculation policy of the reserve for price fluctuations at Sony Life.

Ordinary Revenues(Billions of yen)Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

Year ended
March 31, 2014

Year ended
March 31, 2015

(Apr. 1, 2013, to Mar. 31, 2014)(Apr. 1, 2014, to Mar. 31, 2015)

Change (%)

1,196.6
89.8
36.4

1,223.9
93.0
38.4

2.3
3.5
5.3

1,323.0

1,355.4

2.4

(2.5)

(3.1)

-

1,320.4

1,352.3

2.4

Year ended
March 31, 2014

Year ended
March 31, 2015

(Apr. 1, 2013, to Mar. 31, 2014)(Apr. 1, 2014, to Mar. 31, 2015)

Ordinary Profit(Billions of yen)Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments*
Consolidated

Change (%)

67.2
3.0
5.6

78.3
4.2
7.3

16.5
40.2
30.0

75.8
0.2

89.8
0.2

18.4
(18.4)

90.0

18.3

76.1
*Amounts in the “Intersegment adjustments” of the Ordinary profit are mainly from SFH.

3

2) Consolidated Financial Forecast for the Fiscal Year Ending March 31, 2016
For the fiscal year ending March 31, 2016 (April 1, 2015, to March 31, 2016), stable and sustainable business growth isexpected in all the businesses: life insurance, non-life insurance and banking.
The consolidated financial forecast for the fiscal year ending March 31, 2016 remains unchanged from the forecast
announced on April 30, 2015. Consolidated ordinary revenues are expected to decrease because we do not anticipate an
improvement in investment income backed by favorable market conditions as was present in FY2014 mainly in the life
insurance business. Consolidated ordinary profit is expected to decrease because we anticipate an increase in spending for
medium-term business growth activities, an increase in provision of policy reserves for minimum guarantees for variable life
insurance in the life insurance business, and lower gains on sale of securities in the life insurance and banking businesses. On
the other hand, consolidated net income is expected to increase due to the reduction in the corporate tax rate.

(Billions of yen)
(Reference)
Actual results for the year
ended March 31, 2015

Financial forecast
for the year ending
March 31, 2016

Ordinary revenues

1,352.3

1,300.0(3.9)

Ordinary profit

90.0

85.0

(5.6)

Net Income attributableto parent company

54.4

57.0

4.7

Net income per share(Yen)

125.10131－

Change (%)

We do not consider the effects of market fluctuations after April 2015 within our forecast. Therefore, the figures stated above
may differ from actual results for a variety of reasons.

4Business segment forecasts for the fiscal year ending March 31, 2016 (April 1, 2015, to March 31, 2016) are as follows.
Forecast figures from each business reflect corporate and eliminations.
<Life insurance business>
Ordinary revenues are expected to decrease because we do not anticipate an increase in investment income backed byfavorable market conditions as was present in the fiscal year ended March 31, 2015. Ordinary profit is expected to decrease
because we anticipate an increase in spending for medium-term business growth activities and an increase in provision ofpolicy reserves for minimum guarantees for variable life insurance.
(Billions of yen)
(Reference)
Actual results for the year
ended March 31, 2015

Financial forecast
for the year ending
March 31, 2016

Ordinary revenues

1,223.9

1,168.0(4.6)

Ordinary profit

78.3

74.1

(5.4)

Change (%)<Non-life insurance business>
Ordinary revenues and ordinary profit are expected to increase in line with growth in net premiums written primarily formainstay automobile insurance.
(Billions of yen)
(Reference)
Actual results for the year
ended March 31, 2015

Financial forecast
for the year ending
March 31, 2016

Ordinary revenues

93.0

97.1

4.4

Ordinary profit

4.2

4.4

4.5

Change (%)<Banking business>
Ordinary revenues and ordinary profit are expected to decrease because we do not anticipate an increase in gains on
bond-dealing transactions including sale of bonds as was present in the fiscal year ended March 31, 2015.
(Billions of yen)
(Reference)
Actual results for the year
ended March 31, 2015

Financial forecast
for the year ending
March 31, 2016

Ordinary revenues

38.4

36.8

(4.2)

Ordinary profit

7.3

6.4

(12.7)

5

Change (%)

2. Qualitative Information on Consolidated Financial Position
1) Assets, Liabilities and Net Assets
As of March 31, 2015, total assets amounted to ¥9,545.8 billion, up 8.0% from March 31, 2014. Among major components ofassets, securities, mostly Japanese government bonds, amounted to ¥7,377.5 billion, up 8.1% from March 31, 2014. Loanscame to ¥1,349.5 billion, up 11.4%, and monetary trusts amounted to ¥336.8 billion, up 3.4%.
Total liabilities were ¥8,995.1 billion, up 7.4% from March 31, 2014. Major components of liabilities included policy
reserves and others of ¥6,879.0 billion, up 9.8%, and deposits totaled ¥1,872.8 billion, down 0.9%.
Total net assets were ¥550.6billion, up 17.9% from March 31, 2014. This included net unrealized gains on other securities,
net of taxes, which increased ¥35.1 billion, to ¥127.1 billion.
2) Cash FlowsNet cash provided by operating activities for the fiscal year ended March 31, 2015, was ¥425.6 billion, down ¥176.0 billion
from the previous fiscal year. The primary reason for this decline was because of a decrease in revenue from insurance
premiums in the life insurance business, a decline in customer deposit and a growing balance of loans such as mortgage loans
in the banking business.
Net cash used in investing activities was ¥445.4 billion, down ¥103.9 billion, from the previous fiscal year. This was due
mainly to expenditures for payments to acquire securities in the life insurance business, which exceeded proceeds from saleand redemption of securities in the life insurance and banking businesses.
Net cash used in financing activities came to ¥13.0 billion due primarily to dividend payments, down ¥0.4 billion from theprevious fiscal year.
As a result of the above factors, cash and cash equivalents at March 31, 2015, were ¥207.4 billion, down ¥32.8 billion fromMarch 31, 2014.

3. Basic Policy on Returns to Shareholders and Dividends for the Fiscal Year Ended March 31, 2015,
and the Fiscal Year Ending March 31, 2016
For the fiscal year ended March 31, 2015, taking this period’s overall operating performance into consideration, we plan to
pay a year-end dividend of ¥40 per share (total amount of dividend: ¥17.399 billion).
SFH aims for steady increases in dividends in line with earnings growth over the medium and long terms while securing
sufficient internal reserves to ensure the financial soundness of the Group companies and invest in growing fields.
We have decided to revise upward our medium-term target for the dividend payout ratio from the current range of 30% to
40%, into the new range of 40% to 50% of consolidated net income, further enhancing shareholder returns. Management will
determine specific dividend amounts for each fiscal year by taking into account a comprehensive range of factors, including
the capital adequacy of each Group company relative to risk, investment opportunities, business forecasts and legal andregulatory developments worldwide.
For the fiscal year ending March 31, 2016, we plan to pay a year-end dividend of ¥55 per share (total amount of dividend:¥ 23.924 billion). We will continue to make dividend payments once a year, following the resolution of the general meetingof shareholders, with the dividend record date at the end of each fiscal year.
Please refer to the attached presentation materials for non-consolidated operating results of SFH’s principal subsidiaries,
Sony Life, Sony Assurance and Sony Bank for the fiscal year ended March 31, 2015.

II. Status of the Corporate GroupOn April 1, 2004, SFH was established as a financial holding company (an insurance holding company and a bankholding company) through a corporate separation from Sony Corporation. On October 11, 2007, SFH listed its common
stock on the First Section of the Tokyo Stock Exchange, by publicly offering its shares to Japanese and overseas
investors, resulting in Sony Corporation’s ownerships to account for 60% of the total outstanding shares of SFH.

6

As of March 31, 2015, Sony Financial Group included as direct subsidiaries Sony Life, Sony Assurance and Sony
Bank, and SmartLink Network, Inc.* and SmartLink Network Hong Kong Limited, subsidiaries of Sony Bank. It also
includes AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies accounted for underthe equity method.
* “SmartLink Network Inc.” changed its name to “Sony Payment Services Inc.” on April 1, 2015.

 Sony Financial Holdings Inc. (Management control of its subsidiaries and all duties incidental to that role)[Directly held, indirectly held subsidiaries and affiliated companies accounted for under the equity method]<Life insurance business> Sony Life Insurance Co., Ltd. (Wholly-owned by SFH)
 AEGON Sony Life Insurance Co., Ltd. (50%-owned by Sony Life)
 SA Reinsurance Ltd. (50%-owned by Sony Life)<Non-life insurance business> Sony Assurance Inc. (Wholly-owned by SFH)
<Banking business> Sony Bank Inc. (Wholly-owned by SFH)
 SmartLink Network, Inc. (57% -owned by Sony Bank) SmartLink Network Hong Kong Limited (Wholly-owned by SmartLink Network, Inc.)[Organizational chart] (As of March 31, 2015)
Sony
Corporation

Sony Financial
Holdings Inc.

<Life insurance business>
Sony Life InsuranceCo., Ltd.

<Life insurance
business>
AEGON Sony Life
Insurance Co., Ltd.

<Non-life insurance business>

Sony Assurance Inc.

<Banking business>
Sony Bank Inc.

<Banking
business>
SmartLink
Network, Inc.

<Life insurance
business>
SA Reinsurance
Ltd.

<Banking business>
SmartLink Network
Hong Kong Limited
Consolidated subsidiaries

Trade name and trademark license

Affiliated companies
accounted for under theequity method

Sales and referrals of
the other’s products
7

Management control fee
Shareholding

III. Management Policies
1. Company’s Basic Management Policies
The Sony Financial Group positions its corporate vision and philosophy as the basic policy for setting management
strategy and expediting management decision-making. The Group’s corporate vision and philosophies are described
below.
a. Corporate Vision
The Sony Financial Group seeks to become the most highly trusted financial services group by customers. To thisend, the Sony Financial Group will combine many different financial functions (savings, investment, borrowing, andprotection) to provide high-value-added financial products and high-quality services that meet every customer’s
financial needs.
b. Corporate Philosophy
Put the Customer FirstWe will provide financial products and services that satisfy customers by embracing their individual views, to ensurethat we help them lead prosperous lives with financial security.
Give Back to Society
We believe that a special commitment to the public good is demanded of a financial services enterprise. Conscious ofthis, we will realize our vision by upholding the highest ethics and a strong sense of purpose, and thereby give backto society. In addition, we will fulfill our responsibilities as a good corporate citizen and member of society.
Strive for Originality
We will constantly strive to come up with fresh ideas from basic principles as we pursue creativity and innovation,
instead of merely following custom and convention.
Foster an Open Corporate Culture
We believe that every employee’s contribution is important to develop our ideal of a financial services enterprise. We
will thus foster an open corporate culture where employees can freely express their individuality and demonstrate
their abilities to the fullest.

2. Key Management Benchmarks
SFH closely follows the following management benchmarks.
■ Consolidated ordinary revenues■ Consolidated ordinary profit■ Consolidated net income
Since Sony Financial Group’s company 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 capitalefficiency.
Adjusted ROE is calculated as following:
1) Sony Life:( Numerator ) The amount of increase in Embedded Value (EV) during the fiscal year plus
dividends paid
(Denominator) EV as of the beginning of the fiscal year less dividends paid plus EV as ofthe end of the fiscal year, divided by two*Sony Life uses Market Consistent Embedded Value for the EV calculation.

2) Sony Assurance:( Numerator ) Net income plus provision amount for catastrophe reserve and its provision
amount for reserve for price fluctuations, in each case after taxes(Denominator) The average amount of net assets plus the sum of catastrophe reserve and its
reserve for price fluctuations during the fiscal year, in each case after taxes

83) Sony Bank:( Numerator ) Net income(Denominator) The average amount of net assets during the fiscal year

We calculated Consolidated adjusted ROE as follows.
Consolidated adjusted ROE = consolidated adjusted profit divided by consolidated adjusted capital.
Consolidate adjusted profit is calculated as the sum of the following:
1) Sony Life:The amount of increase in EV during the fiscal year plus dividends paid
2) Sony Assurance: Net income plus provision amount for catastrophe reserve and its provision amount forreserve for price fluctuations during the fiscal year, in each case after taxes
3) Sony Bank:
Net income
Consolidate adjusted capital is calculated as the sum of the following:
1) Sony Life:EV as of the beginning of the fiscal year less dividends paid plus EV as of the end of the
fiscal year, divided by two
2) Sony Assurance: The average amount of net assets plus the sum of catastrophe reserve and its reserve forprice fluctuations, in each case after taxes
3) Sony Bank:
The average amount of net assets during the fiscal year

3. Mid- to Long-Term Management Strategies
The Sony Financial Group aims to maximize the corporate value of the Group over the medium to long term byimplementing the management strategies outlined below.
(a) Sustainable and Stable Growth of Group Companies
Sony Life:
Sony Life provides detailed tailored consulting and follow-up services through life insurance
professionals—Lifeplanner sales employees and Partners (independent agencies)—who havebroad-ranging expertise and extensive experience in such areas as economics, finance andtaxation. Sony Life strives to strengthen its capabilities and hone its competitive edge in theindividual life insurance market by providing value in a way that only Sony Life can.
Sony Assurance: Capitalizing on the strengths of its position as a direct insurance provider that communicateswith each of its customers directly via the Internet and the telephone, Sony Assurance precisely
understands customer opinions and needs, and provides products and services from a customer
viewpoint. Sony Assurance aims to increase its income from insurance premiums by offering
reasonably priced insurance premiums realized by risk-segmented products and operational
efficiency.
Sony Bank:
Sony Bank is an Internet bank focused on the needs of individual customers. By maximizing
information technologies, the bank works to provide fair and highly convenient financial
products and services. By ensuring its trustworthiness in such ways, the bank is working to
expand its operations further.
(b) Fostering Synergy among Group Companies
In addition to the growth of each company within the Group, we seek to enhance synergies among the companiesof the Sony Financial Group. Such efforts include the joint offering of products and services, the sharing of
distribution channels and infrastructure and other forms of collaboration. By increasing intra-group synergies, SFH
aims to offer customers attractive and high-value-added products and services that are unmatched by conventional
financial institutions.
(c) Expanding into New Business Fields, Outside the Existing Framework
Sony Financial Group entered nursing care business in November 2013, and Sony Lifecare Inc. was established in
April 2014 as a holding company to oversee the Group’s operations in the nursing care business, aiming tocontributing to the realization of a society that help elderly people live fulfilled and securely throughout their lives

9through nursing care services. In May 2015, Sony Lifecare Inc. entered capital participation in Yuuai Holdings Co.,
Ltd. (YHD), which is involved in the operation of nursing care homes and other businesses under its umbrella, by
acquiring a portion of YHD’s common stock. (14.5% of total shares issued)
Through the growth of Group companies and increased synergies within the Group, we aim to move beyond theexisting framework of the Sony Financial Group. We are examining active advancements into new business fields
that will raise our corporate value even further.

4. Tasks Ahead for the Company
In the fiscal year ending March 31, 2016, Japanese economy has shown signs of modest recovery, led by stablepersonal consumption, higher corporate earnings and improvement in the employment and income environment.
However, uncertainty remains on the corporate management horizon. We will need to continue monitoring theongoing risk of a global economic downturn.
Regardless, the insurance and banking industries must serve their role in providing proper and stable financial
services, while consistently executing growth strategies.
The Sony Financial Group seeks to become the most highly trusted financial services group by customers. To thisend, the Group has redoubled its internal control efforts focused on compliance, risk management, eradicating
anti-social influences and ensuring the protection of personal information. The Sony Financial Group has also
explored its ideal of providing financial services for individual customers from various perspectives. We are working
to realize our vision and achieve ongoing increases in corporate value by executing the above management strategies.
At the same time, we identify our social role and mission as a financial institution as contributing to the realizationof a sustainable society. We will fulfill our responsibilities to our stakeholders accordingly.

10IV. Basic Views on Selection of Accounting Standards
SFH’s consolidated financial statements are prepared in accordance with accounting principles generally acceptedin Japan. SFH is considering whether to adopt International Financial Reporting Standards (“IFRS”) while closely
monitoring the development of new accounting standards and the stance of regulatory bodies at home and abroad.

11

V. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of March 31, 2015

Cash and due from banks¥204,546¥134,803

Call loans and bills bought

40,62877,234

Monetary trusts

325,831

336,842

Securities

6,822,151

7,377,545

Loans

1,211,638

1,349,586

71,565123,083Land

30,10383,007

Buildings

AssetsTangible fixed assets

37,03035,323

Leased assets

106

74

Construction in progress

947

1,666

Other tangible fixed assets

3,376

3,010

Intangible fixed assets

36,77433,366

Software36,571

33,245

Goodwill

179

99

Other intangible fixed assets

24

21

Due from reinsurers

158

297

Foreign exchanges

7,752

2,224

100,503102,756

Net defined benefit asset

1,730

3,005

Deferred tax assets

19,872

6,545

Reserve for possible loan losses(1,769)(1,422)¥8,841,382¥9,545,868

Other assets

Total Assets

12

(Millions of yen)
As of March 31, 2014

As of March 31, 2015

¥6,263,315¥6,879,055

57,40061,1146,201,676

6,813,749

4,237

4,191

Due to agencies

2,169

2,450

Due to reinsurers

650

675

1,889,970

1,872,860

Call money and bills sold

6,000

6,000

Borrowed money

20,00020,000Foreign exchanges

40

46

Bonds payable

20,00020,000

Other liabilities

95,725

122,340

Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders' dividends

Deposits

Reserve for employees' bonuses

3,204

3,395

Net defined benefit liability

30,272

24,558250

338

41,65742,969Reserve for directors' retirement benefits
Special reserves

41,65742,969Deferred tax liabilities

Reserve for price fluctuations

539–

Deferred tax liabilities on land revaluation

536

503

8,374,332

8,995,195

Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

164,790

212,124(0)(0)

379,967

427,301

Net unrealized gains on other securities, net of taxes

92,002

127,166

Net deferred losses on hedging instruments, net of taxes(2,388)(2,086)

Land revaluation, net of taxes(1,513)(1,480)00Total Liabilities
Net Assets

Treasury Stock
Total shareholders' equity

Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of taxes(2,292)(1,522)

Total accumulated other comprehensive income

85,807122,078

Minority interests

1,275

1,292

Total Net Assets

467,050

550,672¥8,841,382¥9,545,868

Total Liabilities and Net Assets

13

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

Ordinary Revenues¥1,320,456¥1,352,325

Ordinary Revenues from the Life Insurance Business

1,194,315

1,221,077

959,911912,605

958,585

911,068

Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions

1,325

1,537

211,829

279,691

Interest income and dividends

121,666

133,135

Income from monetary trusts, net

5,311

5,283

Investment income

Gains on trading securities–

507

Gains on sale of securities

773

8,899

2

1

Gains on derivatives, net

172–

Foreign exchange gains, net

1,183

5,068

Other investment income

47

7

82,670126,789

22,57528,78089,86393,022

88,63991,761

88,60091,712

Interest and dividends on deposits of premiums

39

48

Other underwriting income

–

0

1,199

1,235

1,209

1,268

Gains on sale of securities

25

15

Gains on redemption of securities

3

–

(39)

(48)

24

25

36,27738,224

26,32826,132

Interest income on loans

14,134

14,070Interest income and dividends on securities

12,077

11,960

8

7

107

93

Gains on redemption of securities

Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written

Investment income
Interest income and dividends

Transfer to interest and dividends on deposits of premiums
Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

Interest income on call loans and bills boughtInterest income on deposits with banks
Other interest income

00Fees and commissions

4,928

5,880

Other operating income

4,864

5,997

Gains on foreign exchange transactions, net

2,782

3,906

Others

2,082

2,090

155

213

Other ordinary income(Continued)

14

(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

Ordinary Expenses¥1,244,319¥1,262,262

Ordinary Expenses from the Life Insurance Business

1,128,787

1,145,087

327,257

382,902

Insurance claims

77,413

79,622

Annuity payments

10,768

11,280Insurance claims and other payments

Insurance benefits

55,51063,166

Surrender payments

178,402223,130

Other payments

3,203

3,675

Reinsurance premiums

1,959

2,027

650,764

604,35755

746

650,703603,6075

3

Investment expenses

8,182

9,439

Interest expenses

48

31

Losses on sale of securities

528

0

Losses on redemption of securities–

0

Losses on derivatives, net

–

2,099

Provision for reserve for possible loan losses

632

Depreciation of real estate for rent and others

1,952

1,833

Other investment expenses

5,646

5,441

Operating expenses

113,442

115,237

Other ordinary expenses

29,14033,14986,18988,115

Underwriting expenses

65,03065,206Net losses paid

46,18345,985

Loss adjustment expenses

6,367

6,857

948

929

Provision for reserve for outstanding losses

4,098

2,966

Provision for underwriting reserves

7,433

8,465

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

Ordinary Expenses from the Non-life Insurance BusinessNet commission and brokerage fees

Other underwriting expenses

0

0

7

1

Losses on sale of securities

5

1

Losses on redemption of securities

2–

21,15022,90007Investment expenses

Operating, general and administrative expenses
Other ordinary expenses(Continued)

15

(Millions of yen)
For the year ended
March 31, 2014
Ordinary Expenses from the Banking Business

For the year ended
March 31, 2015

¥29,343¥29,060

8,964

9,407

4,905

5,012

6

6

Interest on borrowed money

26

22

Interest expenses on bonds

119

97

3,905

4,268

0

0

Fees and commissions

1,735

1,948

Other operating expenses

1,424

135

General and administrative expenses

16,92017,517298

50

Ordinary Profit

76,13690,062Extraordinary Losses

9,508

1,927

Losses on disposal of fixed assets

137

511

Impairment losses

36

71

9,312

1,311

9,312

1,311

Losses on transfer of business–32

Others20–

Provision for Reserve for Policyholders' Dividends

2,232

2,153

Income Before Income Taxes

64,39685,981

Income Taxes

23,93331,538- Current

26,451

32,207- Deferred(2,517)(668)

40,46254,442(42)

23¥40,504¥54,419

Interest expenses
Interest expenses on deposits
Interest expenses on call money and bills soldInterest expenses on interest rate swaps
Other interest expenses

Other ordinary expenses

Provision for special reserves
Provision for reserve for price fluctuations

Income Before Minority Interests
Minority interests in income(losses)
Net Income

16

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

¥40,462¥54,442Net unrealized gains (losses) on other securities, net of taxes

3,672

35,164

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

659

302

Land revaluation, net of taxes–

33

Foreign currency translation adjustments

01

Remeasurements of defined benefit plans, net of taxes–

762

Share of other comprehensive income of affiliates accounted
for using equity method

0

0

4,332

36,264¥44,794¥90,707

Comprehensive income attributable to parent company

44,837

90,690Comprehensive income attributable to minority interests

(42)

16

Income Before Minority Interests
Other comprehensive income

Total other comprehensive income
Comprehensive income(Details)

17

3. Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2014
(Millions of yen)
Shareholders' Equity
Common stock

Balance at the beginningof the fiscal year
Changes during theperiodCapital surplus

Retained earnings

Treasury stock

Total shareholders' equity¥19,900¥195,277¥135,160–¥350,337

Dividends from surplus––(10,875)–(10,875)

Net income––

40,504–40,504

–

–

–

(0)

(0)

–

–

–

–

–

–

–

29,629(0)

29,629¥19,900¥195,277¥164,790¥ (0)¥379,967

Purchase of treasurystock
Net changes of items
other than shareholders'equityTotal changes during theperiodBalance at the end of thecurrent period

Total accumulated other comprehensive income
Net unrealized
gains (losses) onother securities,
net of taxes

Net deferredgains (losses) on
hedging
instruments,
net of taxes

Landrevaluation, netof taxes

Foreign currencytranslation
adjustments

Remeasurementsof defined
benefit plans, netof taxes¥88,329¥(3,047)¥(1,513)––¥83,767¥1,339¥435,444

Dividends from surplus

–

–

–

–

–

–

–

(10,875)

Net income

–

–

–

–

–

–

–

40,504

–

–

–

–

–

–

–

(0)

3,672

659

–

0

(2,292)

2,039

(64)

1,975

3,672

659

–

0

(2,292)

2,039

(64)

31,605¥92,002¥ (2,388)¥ (1,513)¥0¥ (2,292)¥85,807¥1,275¥467,050

Balance at the beginningof the fiscal year
Changes during theperiodPurchase of treasurystock
Net changes of items
other than shareholders'equityTotal changes during theperiodBalance at the end of thecurrent period

18

Total
accumulated Minority interests
othercomprehensive
incomeTotal Net Assets

For the year ended March 31, 2015
(Millions of yen)
Shareholders' Equity
Common stock

Balance at the beginningof the fiscal year
Cumulative effects ofchanges in accounting
policies
Restated balance at the
beginning of the fiscal
year
Changes during theperiodCapital surplus

Retained earnings

Treasury stock

Total shareholders' equity¥19,900¥195,277¥164,790¥ (0)¥379,967

–

–

5,965

–

5,965

19,900195,277

170,755(0)385,932

Dividends from surplus––(13,049)–(13,049)

Net income––

54,419–54,419

–

–

–

(0)

(0)

–

–

–

–

–

–

–

41,369(0)41,369¥19,900¥195,277¥212,124¥ (0)¥427,301

Purchase of treasurystock
Net changes of items
other than shareholders'equityTotal changes during theperiodBalance at the end of thecurrent period

Total accumulated other comprehensive income
Net unrealized
gains (losses) onother securities,
net of taxes

Net deferredgains (losses) on
hedging
instruments,
net of taxes

Landrevaluation, netof taxes

Foreign currencytranslation
adjustments

Remeasurementsof defined
benefit plans, netof taxes¥92,002¥ (2,388)¥ (1,513)¥0¥ (2,292)¥85,807¥1,275¥467,050

–

–

–

–

–

–

–

5,965

92,002(2,388)(1,513)0(2,292)85,8071,275

473,015

Dividends from surplus

–

–

–

–

–

–

–

(13,049)

Net income

–

–

–

–

–

–

–

54,419

–

–

–

–

–

–

–

(0)

35,164

302

33

0

769

36,27016

36,28735,164

302

33

0

769

36,27016

77,657¥127,166¥ (2,086)¥ (1,480)¥0¥ (1,522)¥122,078¥1,292¥550,672

Balance at the beginningof the fiscal year
Cumulative effects ofchanges in accounting
policies
Restated balance at the
beginning of the fiscal
year
Changes during theperiodPurchase of treasurystock
Net changes of items
other than shareholders'equityTotal changes during theperiodBalance at the end of thecurrent period

19

Total
accumulated Minority interests Total Net Assets
othercomprehensive
income4. Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

Cash flows from operating activities
Income before income taxes¥64,396¥85,981

Depreciation of real estate for rent and others

1,952

1,833

Depreciation and amortization

9,147

9,686

Impairment losses

36

71

Amortization of goodwill

79

79

Increase (decrease) in reserve for outstanding claims

4,153

3,713

658,136

612,072

5

3

2,232

2,153

Increase (decrease) in reserve for possible loan losses

(108)

(116)

Increase (decrease) in net defined benefit liability

2,865

2,954

Increase (decrease) in reserve for directors' retirement benefits

(161)

88

Increase (decrease) in reserve for price fluctuations

9,312

1,311

Interest income and dividends(149,204)(160,536)(Gains) losses on securities(74,996)(134,394)

9,012

9,438

(30,559)(32,341)

146

42

Increase in policy reserve
Increase in interest portion of reserve for policyholders'
dividends
Increase (decrease) in reserve for policyholders' dividends

Interest expenses
Exchange (gains) losses
Losses on disposal of tangible fixed assets
Equity in losses of affiliates

1,538

1,506

Net (increase) decrease in loans(87,193)(129,767)

Net increase in deposits
Net increase (decrease) in borrowed money (excluding
subordinated borrowings)
Net (increase) decrease in call loans and bills bought

33,559(16,093)

20,000

–

4,000

–

Net increase (decrease) in call money and bills sold

(4,000)–Net (increase) decrease in foreign exchange (assets)

202

5,528

Net increase (decrease) in foreign exchange (liabilities)

(47)

6

Others, net

7,078

27,714

Subtotal

481,587

290,938

Interest and dividends received

160,737

172,736

Interest paid

(9,178)(9,117)

Policyholders' dividends paid

(2,273)(2,202)

Income taxes paid

(29,134)(26,698)

Net cash provided by operating activities

601,738

425,656(Continued)

20

(Millions of yen)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

Cash flows from investing activities
Investments in monetary trusts¥(2,301)¥(3,081)

5,100

5,300

Purchases of securities(990,899)(943,359)

Proceeds from sale and redemption of securities

480,946588,936

Investments in loans(54,102)(54,199)

Collections of loans

25,405

24,618–(1,626)(535,850)(383,413)

Total of net cash provided by (used in) operating activities andinvestment transactions

65,88742,243Purchases of tangible fixed assets(3,326)(54,563)

Proceeds from sale of tangible fixed assets

2,021

–

Purchases of intangible fixed assets(7,707)(4,712)

Purchase of securities of a subsidiary(1,058)(1,000)Purchase of securities of affiliates(3,500)(2,500)75758(549,346)(445,431)

Cash dividends paid

(10,878)(13,050)

Net decrease in subordinated borrowings(2,000)

–

(0)

(0)

Balance from securitization of lease receivables

(600)

–

Others(43)(36)(13,522)(13,087)

5

4

Net increase (decrease) in cash and cash equivalents

38,875(32,857)

Cash and cash equivalents at beginning of the fiscal year

201,404

240,279

Cash and cash equivalents at end of the fiscal year

¥240,279¥207,422

Proceeds from sale of monetary trusts

OthersTotal of net cash used in investment transactions

OthersNet cash used in investing activities
Cash flows from financing activities

Purchase of treasury stock

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

21

5. Notes to the Consolidated Financial Statements
1) Changes in accounting policies(Application of Accounting Standards for Retirement Benefits)
The Sony Financial Group has applied Clause 35 of the “Accounting Standards for Retirement Benefits” (ASBJ Statement No. 26,
May 17, 2012) and Clause 67 of the “Guidance on Accounting Standards for Retirement Benefits” (ASBJ Guidance No. 25, March
26, 2015) from the fiscal year under review. Accordingly, the Group has reviewed its calculation method of retirement benefit
obligations and service costs, changed the method of attributing expected benefit to periods from the point basis and straight-line
basis to the benefit formula basis, and changed the method of determination of the discount rate. Primarily, this change was from a
discount rate based on a number of years approximately equal to the average remaining service period to a weighted average
discount rate for expected retirement benefit payment periods and the expected payment amount for each expected payment
period.
Following Clause 37 of the “Accounting Standards for Retirement Benefits,” which stipulates transitional treatment of the newstandard, the effect of the change in the calculation method of retirement benefit obligations and service costs is adjusted inretained earnings at the beginning of the fiscal year.
As a result, at the beginning of the fiscal year under review, net defined benefit liability decreased ¥8,341 million, deferred tax
assets fell ¥2,651 million, net defined benefit asset increased ¥274 million, and retained earnings grew ¥5,965 million. Ordinary
profit and income before income taxes for the year ended March 31, 2015, declined ¥231 million.
Net assets per share increased ¥13.34 during the year, while net income per share declined ¥0.37. Fully diluted net income pershare was unaffected, as no dilutive shares exist.

2) Changes in presentation method
In the past, the Sony Financial Group included amounts of interest on interest rate swaps and the like, which are hedging
instrument gains (losses) resulting from interest rate risk hedging on available-for-sale securities, within “Other operating income”
and “Other operating expenses” for the Banking Business in the consolidated statements of income and in “Income before income
taxes” within cash flows from operating activities in the consolidated statements of cash flows. From the fiscal year under review,
the Group has instead included these amounts in “Interest income” and “Interest expenses,” in the consolidated statements ofincome and “Interest income and dividends” and “Interest expenses” within cash flows from operating activities in the
consolidated statements of cash flows.
The Sony Financial Group made this change to clarify hedging effectiveness by correlating the gains (losses) of hedged assets
with the losses (gains) of the hedging instrument. The Group made this change because of the growing importance of hedgetransactions following an increase in the bond investment balance that is hedged.
As a result, ¥1,987 million presented as “Other operating expenses” in the consolidated statements of income for the previous
fiscal year has been restated to ¥690 million for “Other operating income” and ¥2,678 million for “Interest expenses.”
Furthermore, restatements in the consolidated statements of cash flows included ¥2,678 million in interest expenses, interest paidof ¥(2,713) million and “others” of ¥34 million.

223) Segment Information(1) Outline of reporting segments
The Sony Financial Group's reporting segments are components of the Group whose operating results are regularly
reviewed by the Board of Directors to make decisions about resources to be allocated to the segments and assess theirperformance, for which discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank Inc., and pursues
financial group strategies. The subsidiaries make their own business plans and engage in business activities from which
they may earn revenues and incur expenses, under the Insurance Business Law of Japan, the Banking Law of Japan, andother regulations.
The Sony Financial Group consists of three reporting 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., SmartLink Network, Inc.（which changed its name to Sony
Payment Services Inc. in April 1, 2015）and SmartLink Network Hong Kong Limited.

23

(2) Segment Information by reporting segment
For the year ended March 31, 2014
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andintangible fixed assets

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥1,194,315
2,375
1,196,690
67,247
6,619,364¥89,8631
89,864
3,004
142,728¥36,277
209
36,486
5,637
2,068,713¥1,320,456
2,585
1,323,042
75,8898,830,807

7,141

2,137

2,240

11,520122,141
48

1,209
－

26,328
9,078

149,679
9,127(1,538)
9,369

－
－

－
－

(1,538)9,369¥3,267¥4,936¥2,511¥10,716(Note) These figures are presented following restatement in accordance with the changes in financial presentation for the fiscal year
under review, described in “2 ) Changes in presentation method” to the “5. Notes to the Consolidated Financial Statements.”

For the year ended March 31, 2015
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andintangible fixed assets

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥1,221,077
2,910
1,223,988
78,3207,301,055¥93,022
1
93,023
4,210
157,946¥38,224
201
38,426
7,329
2,074,623¥1,352,325
3,113
1,355,438
89,8609,533,625

7,199

2,480

2,250

11,929133,610

1,268

26,132

161,011

31

－

9,543

9,574

(1,506)
10,510－－－－(1,506)
10,510¥56,098¥2,195¥2,416¥60,71124

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Millions of yen
For the year ended
For the year ended
March 31, 2015
March 31, 2014
¥1,323,042¥1,355,438(2,585)(3,113)¥1,320,456¥1,352,325

Totals of reporting segments
Adjustments for intersegment transactions
Ordinary revenues in statement of income(Note) These figures are presented following restatement in accordance with the changes in financial presentation for the fiscal year
under review, described in “2 ) Changes in presentation method” to the “5. Notes to the Consolidated Financial Statements.”

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income

Millions of yen
For the year ended
For the year ended
March 31, 2015
March 31, 2014
¥75,889¥89,8607
7239
194¥76,136¥90,062

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Assets in balance sheets

Millions of yen
For the year ended
For the year ended
March 31, 2014
March 31, 2015
¥8,830,807¥9,533,625(21,025)(26,345)
31,60038,588¥8,841,382¥9,545,868

Millions of yen
For the year ended
For the year ended
March 31, 2014
March 31, 2015
Consolidated
Consolidated
financial
Total
Adjustments financial
Total
Adjustments
statements
statements
Depreciation¥11,520¥11¥11,531¥11,929¥18¥11,948

Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets

149,679
9,127

(475)
(114)

149,204
9,012

161,011
9,574

(475)
(135)

160,536
9,438(1,538)－(1,538)(1,506)－(1,506)

9,369

－

9,369

10,510－10,510¥10,716¥220¥10,936¥60,711¥4¥60,716(Note) These figures are presented following restatement in accordance with the changes in financial presentation for the fiscal year
under review, described in “2 ) Changes in presentation method” to the “5. Notes to the Consolidated Financial Statements.”

25

Relative information
For the year ended March 31, 2014
1. Information by business segment
Life insurance
business
Ordinary revenues from
External customers¥1,194,315

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥89,863¥36,277

Total¥1,320,456(Note) These figures are presented following restatement in accordance with the changes in financial presentation for the fiscal year
under review, described in “2 ) Changes in presentation method” to the “5. Notes to the Consolidated Financial Statements.”

2. Geographic segment information(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers inJapan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.
For the year ended March 31, 2015
1. Information by business segment
Life insurance
business
Ordinary revenues from
External customers¥1,221,077

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥93,022¥38,224

Total¥1,352,325

2. Geographic segment information(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers inJapan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.

26

Information on impairment losses on fixed assets by business segment
For the year ended March 31, 2014
Millions of yen
Reporting segments
Life insurance
business
Impairment losses¥36

Non-life
insurancebusiness－

OthersBankingbusiness

Consolidated

Total
¥36

－

－

¥36

For the year ended March 31, 2015
Millions of yen
Reporting segments
Life insurance
business
Impairment losses¥10

Non-life
insurancebusiness－

OthersBankingbusiness

Consolidated

Total

60

¥71

－

¥71

Information on amortization of goodwill and unamortized balance by business segment
For the year ended March 31, 2014
Millions of yen
Reporting segments
Life insurance
business
Amortization of
goodwill
Balance at end of
periodNon-life
insurancebusiness

OthersBankingbusiness

Consolidated

Total

－

－

¥79

¥79

－

¥79

－

－

¥179

¥179

－

¥179

For the year ended March 31, 2015
Millions of yen
Reporting segments
Life insurance
business
Amortization of
goodwill
Balance at end of
periodNon-life
insurancebusiness

OthersBankingbusiness

Consolidated

Total

－

－

¥79

¥79

－

¥79

－

－

¥99

¥99

－

¥99

Information on negative goodwill by business segment
No applicable items to be reported.

27

4) Financial Instruments
Fair value information on financial instruments
Below is fair value information on financial instruments as of March 31, 2015, excluding securities whose fair values are notreadily determinable.
Financial assets
Millions of yen
As of March 31, 2015

Cash and due from banks
Call loans and bills bought
Monetary trusts
Monetary trusts for trading
purposes
Other monetary trusts
Securities
Trading securities
Held-to-maturity securities
Available-for-sale securities
Loans
Reserve for possible loan
losses*Total Financial Assets

Consolidatedbalance sheet
amount¥134,803
77,234

Fair value

Difference¥134,803
77,234

－
－

565

565

－

336,276

336,276－

761,473
4,956,260
1,625,050
1,349,586

761,4735,805,065
1,625,050－¥848,804－

1,470,052¥10,210,520

121,619¥970,424(1,153)
1,348,433¥9,240,096* Excludes general and specific reserves for possible loan losses.
Financial liabilities
Millions of yen
As of March 31, 2015

Deposits
Bonds payable
Total Financial Liabilities

Consolidatedbalance sheet
amount¥1,872,860
20,000¥1,892,860

Fair value¥1,874,170
20,107¥1,894,278

Difference¥1,309107¥1,417

Derivative financial instruments
Millions of yen
As of March 31, 2015

Hedge accounting not applied*
Hedge accounting applied
Total Derivative Financial
Instruments

Consolidatedbalance sheet
amount¥(906)(25,295)

Fair value¥(26,202)

Difference¥(906)(25,295)－－¥(26,202)－* Figures are totals resulting from derivatives transactions, which are accounted for as other assets and liabilities on the
consolidated balance sheets. If the total is a debt amount, the above figure is negative.

28

Calculation of the fair value of financial instruments
Financial Assets
Cash and due from banks, call loans and bills bought
The fair value is regarded as the carrying amount, as they are approximately equal.
Monetary trusts
In individual monetary trusts mainly for investment purposes, the fair value of bonds is the market price on financial
instrument exchanges or the price indicated by a financial institution. Please see “investment in monetary trust, ”whichindicates fair values by purpose.
Securities
The fair value of stocks is the market price on stock market or financial instrument exchanges. The fair value of bonds
and investment funds is the market price or the price indicated by a financial institution. Please see “investment insecurities, ”which indicates fair values by purpose.
Loans(i) Loans in the banking business
The value of these loans is calculated by estimating their future cash flows and then applying a prescribed discountrate. The discount rate is determined by adding to the Libor-based yield curve a premium corresponding to theallowance rate of general provision for loan losses.
(ii) Policy loans in the life insurance business
Policyholder loans are valued by discounting future cash flows to their current value.
(iii) General loans in the life insurance business
The fair value is regarded as the carrying amount, as they are approximately equal.

Financial Liabilities
Deposits
The value of deposits is calculated by type, by estimating their future cash flows and then applying a prescribed discountrate. The discount rate is determined by adding to the Libor-based yield curve a premium corresponding to the banking
subsidiary's cumulative default rate by rating.
Bonds payable
The fair value of bonds payable is the market price or the price indicated by a financial institution.

Derivative Transactions
Please see “derivative financial instruments”,which indicates calculations of fair value.

29Securities whose fair values are not readily determinable
Millions of yen
As of March 31, 2015
Non-consolidated subsidiaries and affiliates¥12,570that are unlisted*1*2
Investment in partnership
22,191
Total¥34,761*1. Unlisted stocks have no market prices and fair values are not readily determinable.
*2. Assets included in“investment in partnership”are stocks in unlisted companies.
Note: Impairment losses on investment in partnership was recognized as ¥217million for the year ended March 31, 2015.
Impairment losses are principally recorded when their fair value as of the end of the fiscal year has declined by 50% ormore from the acquisition cost.
The future redemption schedule of monetary claims and securities with maturities

1 year or less
Cash and due from banks
Call loans and bills bought
Securities
Held-to-maturity securities
Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
OthersAvailable-for-sale securities
Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
OthersLoans*
Total¥134,803
77,234

Millions of yen
As of March 31, 2015
More than 1
More than 5
year to 5 years
years to 10 years－－－－

Over 10 years
－
－

952
952

¥19,317
19,217¥205,119
205,019¥4,762,425
4,614,293

801

16,742

202,187

4,593,080

151－
170,236
31,5292,475
100
373,469
96,1982,832
100
209,143
143,141

21,213
148,131694,677
690,700

4,577

73,82187,007

690,650

26,952
138,706
33,076¥416,302

22,377277,270
64,643¥457,430

56,13466,001
66,082¥480,345

50
3,977
1,021,951¥6,479,055* This figure excludes loans of ¥162,397 million that have no fixed redemption period such as policyholder loans.

The future return schedule of deposits and other liabilities with interest

1 yearor less
Deposits*
Bonds payable
Total¥1,779,609－¥1,779,609

More than
1 yearto 2 years¥18,379
10,000¥28,379* Demand deposits are included in“1 year or less.”

30

Millions of yen
As of March 31, 2015
More than More than More than
2 years
3 years
4 years
to 3 years
to 4 years
to 5 years¥14,980¥4,661¥10,162－
10,000－¥24,980¥4,661¥10,162

More than
5 years¥45,067－¥45,067

5)Investments in Securities
Trading securities
Millions of yen
For the year ended
March 31, 2015
Valuation gains
charged to income¥89,147

Held-to-maturity securities

Fair values exceeding the consolidatedbalance sheet amount
Consolidated
Grossbalance sheet unrealized
Fair value
amountgains
Bonds
Japanese government
and municipal bonds
Japanese corporate
bonds
Others
Total

Millions of yen
As of March 31, 2015
Fair values not exceeding the consolidatedbalance sheet amountGross
Consolidated
unrealizedbalance sheet
Fair value
lossesamountTotal
Consolidatedbalance sheet
amountNet
unrealized
gains

Fair value¥4,857,893 ¥825,162¥5,683,055¥20,087¥(101)¥19,985－－－

4,831,051

820,655

5,651,706

20,087(101)

19,985－－－

26,842

4,506

31,349

－

－

－

－

－

－

78,28023,743¥4,936,173 ¥848,906

102,024¥5,785,079－¥20,087－¥(101)－－－¥19,985 ¥4,956,260 ¥848,804－¥5,805,065

Available-for-sale securities

Fair values exceeding the acquisition cost
Consolidated
Gross
Acquisition
balance sheet unrealized
cost
gains
amount
Bonds
Japanese government
and municipal bonds
Japanese corporate
bonds
Equity securities
OthersTotal¥1,054,235 ¥108,236

Millions of yen
As of March 31, 2015
Fair values not exceeding the acquisition cost
Total
Consolidated
Gross
Consolidated
Net
Acquisition
balance sheet unrealizedbalance sheet unrealized
cost
amountamountgains
lossesAcquisitioncost¥945,998¥29,643¥(276)¥29,920－－－

950,926

105,917845,008

24,084(272)

24,356－－－

103,309

2,318

100,990

5,559

(4)

5,563

－

－

－

32,045
17,894
14,150376,767
15,780360,986¥1,463,047 ¥141,911 ¥1,321,136－
132,359¥162,002－(287)¥(564)－
132,647¥162,567

－
－

－
－

－
－

¥1,625,050¥141,346¥1,483,703

Note: This chart as of March 31, 2015, excludes an investment in partnership of ¥22,191 million (consolidated balance sheet amounts).

31

Available-for-sale securities sold during the period

Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
Equity securities
Others
Total

Millions of yen
For the year ended March 31, 2015
Sales
Gains on sales
Losses on sales¥110,489¥8,340¥1
106,934

8,316

1

3,554
989
84,811¥196,290

23
375
1,680
¥10,396

0
－
30
¥32

Impairment of available-for-sale securities:
Available-for-sale securities with market value are considered impaired if the market value decreases materially below theacquisition cost and such decline is considered non-recoverable. The market value is recognized as the consolidated balance
sheet amount and the write-down is accounted for as a devaluation loss for the fiscal year.
No impairment loss was recognized for the year ended March 31, 2015.
“Material decline”is indicated when the market value is 30% or less than the acquisition cost.

326) Investments in Monetary Trusts
Monetary trusts for trading purposes
Millions of yen
As of March 31, 2015
Consolidated balance
Valuation gains
sheet amountcharged to income¥565¥－
Other monetary trusts

Other monetary trusts

Consolidatedbalance sheet
amount¥336,276

Millions of yen
As of March 31, 2015
Gross
Gross
unrealized
unrealized
gains
losses¥45,208－

Acquisitioncost¥291,067

Note: Jointly invested monetary trusts included in the table above amount to ¥50 million for the year ended March 31, 2015.

Impairment of other monetary trusts
Securities with market values that are included in monetary trusts for purposes other than trading, holding to maturity or policy
reserve matching are considered impaired if their market value decreases materially below the acquisition cost and suchdecline is considered non-recoverable. Their market value is recognized as the consolidated balance sheet amount and thewrite-down is accounted for as a devaluation loss for the fiscal year.
No impairment loss was recognized for the year ended March 31, 2015.
“Material decline”is indicated when the market value is 30% or less than the acquisition cost.

337) Derivative Financial Instruments(1) Hedge accounting not applied
Below is a summary of contractual or notional amounts, current market or fair values, valuation gains or losses, and themethod of calculating the fair values of derivatives, classified by transaction, to which hedge accounting is not applied.
Notional amounts do not indicate exposure to credit loss.
(i) Interest rate derivatives
Millions of yen
As of March 31, 2015
Notional amountOver
Fair value
Total
1 yearOver-the-counter transactions:Interest rate swaps:
Total¥1,000－¥1,000－

Valuation
gains (losses)

¥139
¥139

¥139
¥139

Notes:
1. The above transactions are valued at market, and valuation gains and losses are recorded in the consolidated statements of income.
2. Market values are calculated as of the balance sheet date using the discounted present value, of estimated future cash flows.

(ii) Currency derivatives
Millions of yen
As of March 31, 2015
Notional amountOver
Fair value
Total
1 yearOver-the-counter transactions:
Forward foreign exchanges:
Sold
BoughtForeign exchange margintransactions
Sold
BoughtCurrency options
Sold
BoughtCurrency forward contracts
Sold
BoughtTotal

Valuation
gains (losses)¥144,512
188,611

－
－

¥42
121

¥42
121

63,10520,875－－(1,319)1,624(1,319)
1,624

503
514

－
－

(3)
3

0
0

－
12,917

－
－

－
(903)
¥(434)－(903)¥(433)－－

Notes:
1. The above transactions are valued at market, and valuation gains and losses are recorded in the consolidated statements of income.
2. Market values are calculated using discounted present value, option pricing models and other methods.

(iii) Stock derivatives
Millions of yen
As of March 31, 2015
Notional amount
Over
Total
Fair value
1 yearFinancial Instruments Exchange
Stock index futures
Sold
Total

¥21,903－－－¥(612)¥(612)

Valuation
gains (losses)¥(612)¥(612)

Notes:
1. The above transactions are valued at market, and valuation gains and losses are recorded in the consolidated statements of income.
2. The fair value is the closing price of the exchange at the end of the fiscal year.

34

(2) Hedge accounting applied
The following provides a summary of contractual or notional amounts, current market or fair values, valuation gains orlosses, and the method of calculating the fair values of derivatives, classified by transactions, to which hedge accounting isapplied. Notional amounts do not indicate exposure to credit loss.
(i) Interest rate derivatives
Millions of yen
As of March 31, 2015
Notional amount
Over
Total
1 yearDeferred hedge accounting
Interest rate swaps
Fair value hedge accounting
Interest rate swaps
Total

Fair value

Hedged item

¥39,000¥39,000¥(1,095) Loans, Deposits

362,048

321,092－(24,635) Available-for-sale securities (bonds)¥(25,731)－

Notes:
1. SFH applies deferred hedge accounting and fair value hedge accounting in accordance with“Accounting and Auditing Treatments on Application of
Accounting Standard for Financial Instruments in the Banking Industry”(Industry Audit Committee of Japanese Institute of Certified Public
Accountants No. 24).
2. Market value is calculated using discounted present value and other methods.

(ii) Currency derivatives
Millions of yen
As of March 31, 2015
Notional amount
Over
Total
1 yearFair value hedge accounting
Currency swaps
Total¥8,998－¥2,168－Notes:
1. SFH applies mainly fair value hedge accounting.
2. Market value is calculated mainly using discounted present value and other methods.

8) Subsequent Events
There were no applicable subsequent events.

35

Fair value

Hedged item

¥435 Available-for-sale securities (bonds)¥435

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ insignificant respects from the financial information reported by Sony Corporation, the SFH’s parent company, which
prepares its financial statements in accordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies
Consolidated subsidiaries:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
SmartLink Network, Inc. (Changed its name to “Sony Payment Services Inc.” on April 1, 2015.)
SmartLink Network Hong Kong Limited.
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.
SmartLink Network Hong Kong Limited was included in the scope of consolidation from the fourth quarter of the
fiscal year ended March 31, 2014.

Statements made in this press release with respect to Sony Financial Holdings’ current plans, estimates,
strategies and beliefs and other statements that are not historical facts are forward-looking statements about
the future performance of Sony Financial Holdings. Forward-looking statements include, but are not limited to,those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,”“estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” andwords of similar meaning in connection with a discussion of future operations, financial performance, events orconditions. From time to time, oral or written forward-looking statements may also be included in othermaterials released to the public. These statements are based on management’s assumptions, judgments andbeliefs in light of the information currently available to it. Sony Financial Holdings cautions investors that a
number of important risks and uncertainties could cause actual results to differ materially from those discussed
in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors
also should not rely on any obligation of Sony Financial Holdings to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise. Sony Financial Holdings
disclaims any such obligation. The information contained in this statements does not constitute or form part ofany offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any
securities, nor shall it or any part of it from the basis of or be relied on in connection with any contract orcommitment whatsoever.

For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

36

Ⅵ. Attachment
Content of Presentation Material

Consolidated Financial Results for the Year Ended March 31, 2015 andSony Life’s Preliminary Market Consistent Embedded Value as of March 31, 2015
･ Consolidated Operating Results for the Year Ended March 31, 2015・・・・・・・・・・・・･ Consolidated Financial Forecast for the Year Ending March 31, 2016・・・・・・・・・・・・･ Dividend Forecast・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・･ Sony Life’s Preliminary MCEV and Risk Amount Based on Economic Value as ofMarch 31, 2015・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・･ Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

37

3
30
32
34
37

Presentation Material

Consolidated Financial Results for the
Y
Year
E
Ended
d dM
March
h 31,
31 201
2015
andSony Life’sLife s PreliminaryMarket Consistent Embedded Valueas of March 31,, 2015

Sony Financial Holdings Inc.
M 15,
May
15 2015
Sony Financial Holdings Inc. All Rights Reserved

Content
 Consolidated Operating Results for the Year Ended March 31, 2015

P.3

 Consolidated
C
Financial Forecast ffor the Year Ending March 31
31, 2016

P.30
30

 Dividend Forecast

P.32

 Sony Life’s Preliminary MCEV and Risk Amount Based on

P.34

Economic Value as of March 31, 2015
 Appendix

P.37

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group. Anystatements contained herein that pertain to future operating performance and that are not historic facts are forward-looking statements . Forwardlooking statements may include —but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” and“possibility” that describe future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or
j gmade byy the managementgof the Sonyy Financial Group,p, based on information that is currentlyy available to it. As
written,, are based on judgments
such, these forward-looking statements 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. The Sony Financial Group disclaims any obligation to revise forward-looking statements in light of new information, future events or otherfindings. The information contained in this presentation 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 for any securities, nor shall it or any part of it from the basis of or be relied on in connection with any
contract or commitment whatsoever.
*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Consolidated Operating Results for
the Year Ended March 31
31, 2015

Sony Financial Holdings Inc. All Rights Reserved

3Management Message
 In FY2014, the Group operating performance reached record high inconsolidated ordinary profit, ordinary profit and net income, due to thesteady expansion of operations.

 Sony Life posted a record high new policy amount. MCEV steadilyqof new policiespand the benefit ofincreased thanks to an acquisition
ALM despite the ultralow interest rate environment.

 We expect FY2015 business volume to expand in a stable andsustainable manner by each Group company. However, due to theabsence of some of the market factors that were present in FY2014, we
expect consolidated ordinary revenues, ordinary profit to fall year on
year, while we anticipate a rise in net income owing to the reduction in
the corporate tax rate.

 The
Th proposedd dividend
di id d forf FY2015 iis ¥55 per share,hup ¥15 per sharehyear on year (for the 4th consecutive year of dividend increases). We
will enhance shareholder returns by revising upward the medium- term
target for the dividend payout ratio into 40% to 50% of consolidated net
income.
Sony Financial Holdings Inc. All Rights Reserved

4Highlights of Consolidated Operating Performancefor Year Ended March 31, 2015 (1)Consolidated ordinary revenues
Consolidated ordinary profit

1,320.4 * +2.4%+18.3%

1,352.3

90.0

76.1

FY2014

1 196 6
1,196.6

1 223 91,223.9

+27 2
+27.2

+2 3%
+2.3%
+16.5%

Ordinary revenues
Ordinary profit

67.2

78.3

+11.0

Non-life
Insurancebusinessbus
essOrdinary revenues

89.8

93.0

+3.1

+3.5%

Ordinary
yp
profit

3.0

4.2

+1.2

+40.2%

Bankingbusiness

Ordinary revenues

36.4

38.4

+1.9

+5.3%

Ordinary profit

5.6

7.3

+1.6

+30.0%

Intersegment
adjustments*

Ordinary revenues

(2.5)

(3.1)

(0.5)

－

0.2

0.2

(0.0)

(18.4%)

1,320.4

1,352.3

+31.8

+2.4%

Ordinary profit

76.1

90.0

+13.9

+18.3%Net income

40.5

54.4

+13.9

+34.4%

Consolidated

FY2014(Billions of yen)(*) Banking business revised its method of recording ordinary
revenues and ordinary expenses on hedge transactions from
FY2014. Ordinary revenues for FY2013 have been
retroactively adjusted to reflect the change. Consequently,
consolidated ordinary revenues for FY2013 have been revised
from ¥1,319.7 billion to ¥1,320.4 billion. As adjustments toordinary revenues were accompanied by adjustments in thesame amount to ordinary expenses
expenses, ordinary profit and net
income were unaffected.

ChangeLife
Insurancebusiness

Ordinary profit
Ordinary revenues

FY2013

FY2013(Billions of yen)*Ordinary profit in “Intersegment adjustments” is mainly from SFH.
*Comprehensive income: FY2013: ¥44.7billion, FY2014: ¥90.7 billion(Billions of yen)

Consolidated

14.3.3115.3.31

Change from 14.3.31

Net assets

467.0

550.6

+83.6

+17.9%

Total assets

8,841.3

9,545.8+704.4+8.0%

Sony Financial Holdings Inc. All Rights Reserved

5Highlights of Consolidated Operating Performancefor Year Ended March 31, 2015 (2) Life Insurance Business: Policy amount in force increased steadily, reflecting a record-high new policy

amount during FY2014. Ordinary revenues increased year on year, because of an increase in investment
income, which offset a decline in income from insurance premiums. The decline in income from insurance
premiums was principally because of the brisk sale of lump-sum payment endowment insurance prior to
the sales suspension during FY2013. Ordinary profit increased year on year, mainly for three reasons: anincrease in gains on sale of securities in the general account, the absence of the negative impact from therevision of the discount rate used for calculating policy reserves on the interest rate-sensitive whole life
insurance that was present in FY2013, and an increase in positive spread.
 Non-life Insurance Business: Ordinary revenues expanded year on year, owing to an increase in net

premiums written primarily for mainstay automobile insurance. Ordinary profit grew year on year due to a
dec e in tthe
declinee lossoss ratio,
at o, mainly
a y leded by a lowero e cacar accaccidentde t ratio,
at o, as welle as tthe
e risese in oordinaryd a y revenues.
e e ues Banking Business: Ordinary revenues increased year on year, due mainly to higher revenues related toforeign currency transactions and mortgage loans. Ordinary profit expanded year on year, due to theabove mentioned increase in ordinary revenues and a rise in profit related to bondabove-mentioned
bond-dealing
dealing transactions.
transactions
 Consolidated ordinary revenues increased 2.4% year on year, to ¥1,352.3 billion, owing to increases inordinary revenues from all the businesses: life insurance, non-life insurance and banking. Consolidated
ordinarydiprofitfit grew 18.3%
18 3% year on year, tto ¥90¥90.0
0 billibillion owing
i tto iincreases iin ordinarydiprofitfit ffrom allll ththebusinesses. Consolidated net income was up 34.4% year on year, to ¥54.4 billion, reflecting the rise inordinary profit, and the change of the calculation policy of the reserve for price fluctuations for Sony Life.

Sony Financial Holdings Inc. All Rights Reserved

6

Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues

Ordinary profit

1,223.8

1,197.1
+2.2%

79.6
69.2

FY2013

FY2014

1,197.1

1,223.8+26.7

Income from insurance premiums

960.9

914.0

(46.9)(4.9%)

Investment income

212 3
212.3

280 1
280.1

+67 8
+67.8

+31 9%+31.9%

Interest income and dividends

122.1

133.5

+11.4

+9.4%

Income from monetary trusts, net

5.3

5.2

(0.0)

(0.5%)

Gains on sale of securities

0.7

8.8

+8.1

－

Foreign exchange gains, net

1.1

5.0

+3.8

+328.1%+53.4%(Billions of yen)（億円）

Ordinary revenues+15.1%FY2014 (Billions of yen)

◆ Ordinary revenues and ordinary profit increased year on year.
◆ Income from insurance premiums declined principally becauseof the brisk sale of lump-sum payment endowment insurance
prior to the sales suspension in FY2013
FY2013.
◆ Investment income increased due mainly to higher gains on
separate accounts, higher gains on sale of securities and higher
interest income and dividends on general account assets.
◆ Despite an increase in provision of policy reserves for minimum
guarantees for variable life insurance, ordinary profit increased
year on year,yy , mainly
y for three reasons: an increase in g
gains onsale of securities in general account, the absence of the negative
impact from the revision of the discount rated used for calculating
policy reserves on the interest rate-sensitive whole life insurance
that was present in FY2013, and an increase in positive spread.
◆ Net income was up year on year. Sony Life has changed its
calculation policy of the reserve for price fluctuations toaccumulate the reserve up to required levels from FY2014 while
it had accumulated the reserve in excess of the required levels
until FY2013.

+2.2%

82.6

126.7

+44.1

1,127.9

1,144.1

+16.2

+1.4%

Insurance claims and other payments

327 2
327.2

382.9

+55.6
55.6

+17.0%
17.0%

Provision for policy reserves and others

Gains on separate accounts, net

Ordinary expenses

FY2013

Change

650.7

604.3

(46.4)(7.1%)

Investment expenses

8.5

9.7

+1.2

+14.4%

Operating expenses

113.8

115.6

+1.7

+1.5%

Ordinary profit

69.2

79.6

+10.4

+15.1%Net income

37.0

42.5

+5.4

+14.7%

14.3.3115.3.31

Securities

5 954 7
5,954.7

6 543 7
6,543.7+588 9+588.9

+9 9%
+9.9%

Policy reserves

6,123.6

6,727.2+603.6

+9.9%

369.2

432.5

+63.2

+17.1%

83.4

118.1

+34.6

+41.6%

6,624.9

7,301.3+676.4+10.2%

640.5

793.3

+152.7+23.9%(Billions of yen)

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

Change from 14.3.31

7Sony Financial Holdings Inc. All Rights Reserved

Overview of Operating Performance:
Sony Life (Non-consolidated)<Reasons for changes>

FY2013

FY2014

ChangeNew policy amount

3,889.3

4,771.6+22.7%

Lapse and surrender amount

1,739.4

2,088.4+20.1%
20.1%

Lapse and surrender rate

4.61%

5.35%

+0.74pt

Policy amount in force

39,095.0

40,988.7+4.8%Annualized premiums from new policies

63.9

76.6

+19.7%Of which, third-sector products

13.4

15.2

+13.3%

696.9

735.7

+5.6%

167.0

172.8

+3.4%

(Billions of yen)

Annualized premiums from insurance in force
Of which, third-sector products(Billions of yen)

FY2013

FY2014

ChangeGains from investment, net (General account)

121.1

143.6

+18.6%

Core profit

72.3

76.5

+5.7%

Positive spread

8.4

13.0

+54.8%

Non-consolidated solvency margin ratio

14.3.3115.3.31

Changefrom 14.3.31

2,358.7%

2,555.0%+196.3pt

Notes:
1. Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as
the total of individual life insurance and individual annuities.
2. The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.

◆ Increased due to higher sales of family
income insurance and variable life
insurance.
◆ Increased because during FY14.3Q
some policyholders switched over to
new types of family income insurance
and living benefit insurance, whichwere launched in Oct
Oct. 20142014.
◆ Increased due to higher sales ofvariable life insurance, educational
endowment insurance and living
benefit insurance.

◆ Increased year on year due mainly tothe absence of the negative impact
from the revision of the discount rateused for calculating policy reserves oninterest rate-sensitive whole lifeiinsuranceththatt was presentt ini FY2013
and an increase in positive spread,
although provision of policy reserves
for minimum guarantees for variable
life insurance increased driven by its
brisk sales
sales.

Sony Financial Holdings Inc. All Rights Reserved

8Operating Performance :Sony Life (Non-consolidated) (1)
Number and Amount of New Policies(Individual Life Insurance + Individual Annuities)

Annualized Premiums from New Policies

New policy amount

Annualized premiums from new policies(Individual Life Insurance + Individual Annuities)

Number of new policies

Of which,which third-sector(Thousands ofpolicies)620+13.7%

606

533(Trillions of yen)

5

4.77

4.45

80

76 6
76.6

73.2

500

+19.7%

63.9+22.7%

60

3.88

4

(Billions of yen)

600

400

3

300

2

200

1

100

40

20

0

0

FY2012FY2013+13.3%

18 3
18.3
13.4

15.2

FY2013

FY20140

FY2014FY20129Sony Financial Holdings Inc. All Rights Reserved

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)

Policyy amount in force

Annualized premiums from insurance in force

Number of p
policies in force

Of which, third-sector(Millions of policies)(Trillions of yen)

50

6.04
40

(Individual Life Insurance + Individual Annuities)

37.7

6 33
6.33
39.0

+5.4%

+4.8 %

6.67
40.9(Billions of yen)

7

669.9

6
5

30

800

696.9

+5.6%

735 7
735.7

600

4
400

3

20

2
10
1
0

0
13.3.3114.3.3115.3.31

+3.4%

200

158 6
158.6

167 0
167.0

172 8
172.8

13.3.3114.3.3115.3.310Sony Financial Holdings Inc. All Rights Reserved

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

(%)

8

5.31

6

4.61

+0.74pt

5.35

4

2

0
FY2012FY2013

FY2014**The lapse and surrender rate shows the ratio derived by dividing the amount off
lapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

11

Sony Financial Holdings Inc. All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (4)Income from Insurance Premiums(Billions of yen)(Billions of yen)

1,000
,

Interest Income and Dividends

925 8
925.8

960.9

914 0
914.0
(4.9%)

140
120

800

122.1

+9.4%

133.5

108.5

100
600

80
60

400

40
200
20
0
FY2012FY2013

FY20140
FY2012

Sony Financial Holdings Inc. All Rights Reserved

FY2013

FY201412

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

Ordinary Profit(Billions of yen)

80

(Billions of yen)

80.0

76.5

+5.7%

72.3

80

60

60

40

40

20

20

79.6

74.6

+15.1%

69.2

00
FY2012FY2013(R f(Reference)) ImpactIt on core profit
fit
FY2012
Positive spread
Provision of policy reserves for minimum guarantees
for variable life insurance (*1)
Effects by the revision of policy reserve discount rate
(Interest rate-sensitive whole life insurance) (*2)

FY2012FY2014(Billions of yen)
FY2013
FY2014

2.1

8.4

13.0

1.3

(4.2)

(10.6)

－

(5 7)
(5.7)

－

FY2013

FY2014(Reference) Main differences from Core Profit(Billi(Billions
off yen))
FY2013
FY2014FY2012
Capital gains (losses) excluding gains or losses onhedges (*1)

(0.9)

1.1

10.7

－

－

(2.3)

(4 2)
(4.2)

(4 1)
(4.1)

(5 0)
(5.0)

Gains (losses) on hedges of variable insurance
Provision of contingency reserve (*1)( 1)

*1: “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 ofvariable life insurance.
*2: The effected amount of a surge of sales of interest rate-sensitive whole life insurance due to a delay in rising insurance premiums (May 2013) against the revision of policy reserve discount rate (April 2013).

13

Sony Financial Holdings Inc. All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees+113(Number)

4,500

4,133
4
133
[105]

4,127
4
127
[109]

4,125
4
125
[110]

13.6.30

13.9.30

4,092
[121]

4,216
[138]

4,228
[146]

4,248
[150]

4,329
[[161]]

4,216
[155]
+113

4,000

3 500
3,500

3,000
0

13.3.31

13.12.31

14.3.3114.6.30

14.9.30

14.12.31

15.3.31

Note: Figures in [ ] show the numbers of Lifeplanner sales employees (rehired on a fixed-term contract basis after retirement) included in the overall
numbers, those who have reached retirement age but who continue to work as Lifeplanner sales employees that meet certain sales conditions
and other requirement.

Sony Financial Holdings Inc. All Rights Reserved

14

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

15.3.3114.3.31(Billions of yen)Amount%Amount%Japanese governmentand corporate bonds

5,190.0

86.7%

5,606.8,

86.2%

Japanese stocks

33.2

0.6%

42.4

0.7%

Foreign bonds

79.8

1.3%

105.5

1.6%

26.0

0.4%

26.9

Foreign stocks

0.4%

We have continued to accumulate ultralongterm bonds to match the liability
characteristics of insurance policies withlong term matlong-term
maturities
rities with
ith the aim of red
reducing
cing
interest rate risk.
<Bond duration>
Mar. 31, 2013: 19.9 years
Mar. 31, 2014: 19.7 years
Mar. 31, 2015: 20.3 years

Monetary trusts

305.3

5.1%

313.2

4.8%

Policy loans

154.1

2.6%

162.3

2.5%

Real estate

66.5

1.1%

117.7

1.8%

■ Investment in the monetary trusts is mainly into
Japanese government and corporate bonds.

Cash and call loans

32.6

0.5%

56.8

0.9%

Others

95.6

1.6%

76.7

1.2%

5 984 3
5,984.3

100 0%
100.0%

6 508 06,508.0

100 0%
100.0%■ The holding ratio on the real status of Japanese
government and corporate bonds including
those invested in monetary trusts in the generalaccount assets: As of Mar. 31, 2015: 91.0%(As of Mar. 31, 2014: 91.8%)

Total

15

Sony Financial Holdings Inc. All Rights Reserved

Operating Performance :Sony Life (Non-consolidated) (8)Average Assumed Interest Rate andInvestment Yield for Core Profit

Positive Spread(%)(Billions of yen)

13.0

14

3.00

Average assumed interest rate

Investment yield for core profit

12+54.8%

10

2 31
2.31

8.4

2.27

8
2.00

2.35

2.35

2.18

2.12

6
4
2
0

2.1
1.00
FY2012FY2013

FY2014FY2012

Sony Financial Holdings Inc. All Rights Reserved

FY2013

FY201416

Operating Performance :Sony Life (Non-consolidated) (9)Non-consolidated Solvency Margin Ratio

(%)

3,000

2,555.0+196.3pt

2,500

2,358.7

2,281.8
2,000

1,500

1,000013.3.3114.3.3115.3.3117Sony Financial Holdings Inc. All Rights Reserved

Operating Performance :AEGON Sony Life Insurance*AEGON SonyS
Life
Lif InsuranceIsells
ll individual
i di id l variable
i bl annuities.
iti

Number and Amount of Policies in Force

Number and Amount of New Policies
New policy amount

Number of new polices [ ]Policy amount in force(Thousands ofpolicies)(Billions of yen)

200
167.5
[[28.8]]163.2[26 8][26.8]

Number of policies in force [ ]390.4 (Thousands of[63.5] policies)
70(Billions of yen)

400

35

60

30
300

150

50

236.4
[38.2]

25

40

20
200

100

30

15
50

51.1
[7.3]

10

100

20

76.1
[10.2]

5100

0FY2012FY2013
FY2014
Net income ((losses)) for AEGON Sonyy Life Insurance and SA Reinsurance(Billions of yen)

FY2014FY20130013.3.3114.3.3115.3.31

ChangeAEGON Sony Life Insurance

(3.4)

(5.4)

(2.0)

SA Reinsurance

0.4

2.4

+2.0

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 SFH’s consolidated net income.

Sony Financial Holdings Inc. All Rights Reserved18

Highlights of Operating Performance:
Sony Assurance
Ordinary profit

Ordinary revenues

FY2013

FY2014

89.8

93.0

+3.1

+3.5%

Underwriting income

88.6

91.7

+3.1

+3.5%

Investment income

1.1

1.2

+0.0

+3.0%

86.8

88.8

+1.9

+2.2%

Underwriting expenses

65.4

65.6

+0.1

+0.3%

Investment expenses

0.0

0.0

(0.0)

(85.7%)

Operating general andadministrative expenses

21.3

23.1

+1.7

+8.2%

Ordinary profit

3.0

4.2

+1.2

+40.1%Net income

1.6

2.2

+0.5

+34.2%

14.3.3115.3.31(Billions of yen)

89 8
89.8

+3 5%
+3.5%

93.0

Ordinary revenues

Ordinaryy expenses
p4.2+40.1%

30

FY2013

FY2014(Billions of yen)

◆ Ordinary revenues and ordinary profit increased
year on year.
◆ Ordinaryy revenues increased yyear on year,
y , dueto an increase in net premiums written primarily
for its mainstay automobile insurance.
◆ Ordinary profit grew year on year and reachedrecord high due to a decline in the loss ratio
mainly led by a lower car accident ratio, as wellas the rise in ordinary revenues.

(Billions of yen)

ChangeChange from
14.3.31

Underwriting reserves

78.0

86.5

+8.4

+10.8%Net assets

21.4

24.7

+3.3

+15.5%

Total assets

142.7

157.9

+15.2

+10.7%

19

Sony Financial Holdings Inc. All Rights Reserved

Overview of Operating Performance:
Sony Assurance(Billions of yen)

FY2013

FY2014<Reasons for changes>

ChangeDirect premiums written

87.3

90.4

+3.6%

Net premiums written

88.6

91.7

+3.5%

Net losses paid

46 1
46.1

45 9
45.9

(0 4%)(0.4%)

Underwriting profit

1.8

3.0

+62.4%Net loss ratio

59.3%

57.6%

(1.7pt)Net expense ratio

25 6%
25.6%

26 7%
26.7%

+1 1pt+1.1ptCombined ratio

84.9%

84.3%

(0.6pt)◆ Increased mainly in its mainstay
automobile insurance.

◆ Declined
D li d ddue mainly
i l to a llower car
accident ratio.

◆ Increased due mainly to higher
system-related expenses, a rise ininsurance acquisition cost and a
consumption tax rate rise.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written.
Net expensepratio = Expensesprelated to underwritingg / Net p
premiums written

Number of policies in force
Non-consolidated
solvency margin ratio

14.3.3115.3.31

1 61 million
1.61

1 70 million
1.70

527.6%

629.6%

Change from 14.3.31+0 08 million
+0.08

+5 4%
+5.4%

102.0pt

Note: The number of policies in force is the total of automobile insurance and medical and cancer insurance,
which accounts for 99% of net p
premiums written.

Sony Financial Holdings Inc. All Rights Reserved◆ Rose significantly from ayear earlier, showing thatSony Assurance has
maintained a financial
soundness.

20

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY2013

FY2014

Change

Fire

275

332

+21.0%

Marine－－－Personal accident

8,360

8,576

+2.6%

Voluntary automobile

78,735

81,585+3.6%((Millions of yen)y )Compulsory
automobile liability
T t l
Total

－

－

－

87 37087,37090 49590,495

+3 6%
+3.6%

FY2013

FY2014

Change

Fire

104

45

(56.4%)

Marine153110(27.9%)

Personal accident

8,613

8,845

+2.7%

Voluntary automobile

78,473

81,375+3.7%

Compulsory
automobile liability

1,255

1,335

+6.4%

88 60088,60091 712
91,712

+3 5%
+3.5%

T t l
Total

ChangeFire33(6.3%)

Marine12990(30.1%)

Personal accident

2,066

2,265

+9.7%

Voluntary automobile

42,86042,414(1.0%)

Compulsory
automobile liability
y

1,123

1,212

+7.9%

46,18345,985(0.4%)Total

FY2014*Medical and cancer insurance is included in personal accident.

Net losses paid
(Millions of yen)

FY2013(Millions of yen)

21

Sony Financial Holdings Inc. 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
OthersNumber of policies in force(Millions of(Billions of yen)

120

1 55
1.55

1.61

+5.4%

100

83.5

88.6

+3.5 %

1.70 policies)
91.7

1.5

7
6
5

4.2

4.2

1.4

8.8

80

7.1

(Billions of yen)

4

1

3

60

3.0

+40.1%

2.3

2

81.3

40

0.5

1

0.1
20

0
FY2012FY2013

FY2014*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

00
FY2012FY2013

FY2014

The numberTh
b off policies
li i iin fforce iis th
the ttotalt l off automobilet
bil iinsurance andd medical
di land cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

(Reference) Provision for catastrophe reserve
FY2012
Provision for catastrophe reserve(Billions of yen)

FY2014FY2013

(2 2)
(2.2)

12
1.2

28
2.8

*Provision for catastrophe reserve is described as positive amount.

Sony Financial Holdings Inc. All Rights Reserved

22

Operating Performance:
Sony Assurance (2)Earned/Incurred Loss Ratio +Net Expense Ratio
Earned/Incurred loss ratio

(%)

100

98.9

(Reference) Combined Ratio(Net Loss Ratio+ Net Expense Ratio)
Net loss ratio

Net expense ratio

Net expense
p
ratio

(%)

93.8

100

91.0

89 2
89.2

(2.8pt)

80

80

60

72.9

68.2

(0.6pt)

60

64.3

63.2

59.3

(3.9pt)57.6(1.7pt)

40

40

20

84.3

84.9

26.0

25.6

FY2012FY2013+1.1pt

20

26.0

25.6

FY2012FY201326.7+1.1pt26.7

00FY2014

Notes:
Earned/Inc rred loss ratio = (Net losses paid + Provision
Earned/Incurred
Pro ision for reserve
reser e for outstandingo tstanding
losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]

FY2014

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums writtenSony Financial Holdings Inc. All Rights Reserved

23

Operating Performance:
Sony Assurance (3)Non-consolidated Solvency Margin Ratio

(%)

800

629.6%
600

504.2%

527.6%+102 0pt+102.0pt

400

200

0
13.3.3114.3.3115.3.31Sony Financial Holdings Inc. All Rights Reserved

24Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)<C<Consolidated>
lid t d>Consolidated ordinary revenues
Consolidated ordinary profit

36.4

+5.3%

38.4
7.3

+30.0%(Billions of yen)

FY2013

FY2014

ChangeConsolidated ordinary revenues

36.4

38.4

+1.9

+5.3%

Consolidated ordinary profit

5.6

7.3

+1.6

+30.0%

Consolidated net income

3.4

4.5

+1.1

+32.9%FY2013

FY2014

Ordinary revenues

33 9
33.9

35 7
35.7

Gross operating profit

20.7

22.5

+1.8

+8.8%

Net interest income

17.3

16.6

(0.6)

(3.7%)Net fees and commissions

(0.0)

0.0

0.0

―

Net other operating income

3.4

5.8

+2.4

+70.4%

General and administrative
expenses

14.6

15.3

+0.6

+4.5%

Net operating profit

60
6.0

72
7.2

+1 1
+1.1

+18 4%+18.4%

Ordinary profit

5.8

7.2

+1.4

+24.9%Net income

3.5

4.6

+1.0

+29.3%

14 3 3114.3.31

15 3 3115.3.31<Non-consolidated>(Billions of yen)

5.6

FY2013

FY2014(Billi(Billions
off yen))◆Ordinary revenues and ordinary profit increased year on year
on a consolidated and a non-consolidated basis. Sony Bank
reached record high in ordinary revenues, ordinary profit andnet income.
Co so dated<Consolidated>◆Ordinary revenues increased year on year, due mainly tohigher revenues related to foreign currency transactions andmortgage loans. Ordinary profit expanded year on year, due
to the above-mentioned increase in ordinary revenues and arise in profit related to bond-dealing transactions.
<Non-consolidated＞◆Gross operating profit and net operating profit increased year
on year.
・Net interest income decreased year on year, due mainly to
lower interest income on securities under the lowering interest
rates.
・Net other operating income increased due to higher gains on
f i exchange
foreignhtransactions,tti
iin addition
dditi tot an improvementitin net gains on bond-dealing transactions including sale ofbonds.

(Billions of yen)

+1 7
+1.7

+5 1%
+5.1%

Change from 14
14.3.31
3 31

72.7

77.0

+4.2

+5.9%

7.2

6.6

(0.6)

(8.8%)

2,056.7

2,062.5

+5.8

+0.3%

Net assets
Net unrealized gains onother securities, net of taxes
Total assets

Change(*) Sony Bank revised its method of recording ordinary revenues and ordinary expenses on hedge transactions for
FY2014. Ordinary revenues for FY2013 have been retroactively adjusted to reflect the change.

25

Sony Financial Holdings Inc. All Rights Reserved

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)14.3.3115.3.31

Change from
14.3.31

Customer assets

2 007 5
2,007.5

22,007.9
007 9

+0 3
+0.3

+0 0%
+0.0%

Deposits

1,890.0

1,878.2(11.7)(0.6%)

Yen

1,526.4

1,551.0

+24.5

+1.6%

363 5
363.5

327.2
327 2

(36.3)(36 3)(10.0%)(10 0%)

117.4

129.6

+12.1

+10.4%

Loans outstanding

1,057.4

1,187.1+129.7+12.3%

Mortgage loans

949.3

1,074.3+125.0+13.2%

Others

108.1

112.8

+4.6

+4.3%

9.7

10.5

+0.7

+8.0%

Non-performing assets ratio*2

0.35%

0.28%

(0.07pt)

Capital adequacy ratio*3

11.72%

10.66%(1.06pt)(Billions of yen)F i currency
ForeignInvestment trusts

Number of accounts((10 thousands))(Based on Financial Reconstruction Law)(domestic criteria)*1<Reasons for changes>◆ Yen deposit balance increased fromMarch 31,
31 20142013 due to a conversion
from foreign currencies to yen.
◆ Foreign currency deposit balance
decreased due to a conversion and atransfer into yen deposit led by yen
depreciation.
◆ Loan balance increased due to anincrease in the balance of mortgage
loans.
◆ Number of accounts increased
reflecting
g a new operation byy SonyyLife’s Lifeplanner sales employees tohandle opening account at Sony Bank
from May 2014.
◆ SonyS
B
Bankk maintainsi t i an extremelytl llow
non-performing assets ratio.

*1 Loans in others include corporate loans of ¥107.5billion*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 P29.

Sony Financial Holdings Inc. All Rights Reserved26

Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis<Reference> Interest Spread(Managerial Accounting Basis)

FY2013

FY2014

20 6
20.6

22 4
22.4

+1 8
+1.8

+8 8%
+8.8%

18.2

18.2

+0.0

+0.3%

1.0

0.9

(0.0)

(9.2%)Net other operatingg income*3

1.3

3.2

+1.8

+133.5%Gross operating profit (core profit)(A) ＝①＋②

19.2

19.2

(0.0)

(0.2%)

Operating expenses and otherexpenses ③

14.6

15.2

+0.5

+4.0%

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

4.6

4.0

(0.6)

(13.5%)(Billions of yen)
Gross operating profit
Net interest income*1 ①
Net fees and commissions*2②

ChangeYield on financing
g

Yield on investment
Interest spread
(%)

1.5

1.0

1.20

1.20

0.93

0.92
0.92
(0.01pt)■Managerial accounting basis

0.5

The following adjustments are made to the figures on a financial account for profits andlosses more appropriately.

0.28

0 28
0.28

FY2013

FY2014*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.

0.0*3: Net other operating income: After the above adjustments (*1 and *2), consists of profits andlosses for bond and derivative dealing transactions.
■Core profit

Note: Interest spread=(Yield on investment)-(Yield on financing)

Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

27

Sony Financial Holdings Inc. All Rights Reserved

Operating Performance:
Sony Bank (Non-consolidated) (1)Loans

Deposits
Yen depositspForeigng currency
y depositspMortgageg g loans

Others1,187.1(Billions of yen)
1,200(Billions of yen)

2,000

112.8

1,057.4
1,857.4

1,890.0

390.2

363.5

1,878.2

1,000

970.2

*corporate loansof ¥107.5 billion+129.7
129 7
108.1

109.8

(11.7)
327.2

800

1,500
1,074.3600
1,000

1,551.0
1,467.2

1,526.4

949.3
860.3

400

500

200

0

0
13.3.3114.3.3115.3.3113.3.31Sony Financial Holdings Inc. All Rights Reserved

14.3.3115.3.3128

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

Balance of Securities by Credit Rating
AAA
BBB

AA
A
Others(Domestic Criteria)(%)(Billions of yen)

15

1,200

11 98
11.98
1,000

11.72

908.8

10.66

10

773 8
773.8

800

(1.06pt)

730 0
730.0
(43.7)

600
5
400

200
0
13.3.31013.3.3114.3.3115.3.3114.3.3115.3.31*Calculated based on the standard FSA Notification No. 19 (2006), which establishes
standards
t d d bbased
d on A
Articleti l 1414-2
2 off ththe B
Bankingki A
Actt off JJapan ffor ddeterminingt
i i ththecapital adequacy of a bank in light of the assets held by the bank.
Sony bank calculates this ratio based on Basel III from March 31, 2014

Sony Financial Holdings Inc. All Rights Reserved29Consolidated Financial Forecast
for the Year Ending
g March 31,, 201630

Sony Financial Holdings Inc. All Rights Reserved

Consolidated Financial Forecast
for the Year Ending March 31, 2016
Consolidated ordinary revenues and ordinary profit are expected to decrease, while net income to increase(Billions of yen)
Consolidated ordinary revenues

FY2015(Forecast)

FY2014(Actual)Change1,352.3

1,300.0(3.9%)

1,223.9

1,168.0(4.6%)

Non-life insurance business

93.0

97.1

+4.4%

Banking business

38.4

36.8

(4.2%)

Consolidated ordinary
y profit

90.0

85.0

(5.6%)

Life insurance business

78.3

74.1

(5.4%)

Non-life insurance business

4.2

4.4

+4.5%

Banking business

7.3

6.4

(12.7%)

54 4
54.4

57.0
57
0*

+4 7%
+4.7%

Life insurance business

Consolidated net income

For FY2015, stable and sustainable business growth is expected in all the businesses.
Consolidated ordinary revenues are expected to decrease because we do not anticipate an improvement in investment income backed by favorable market
conditions, as was present in FY2014, mainly in the life insurance business. Consolidated ordinary profit is expected to decrease because we anticipate anincrease in spending for medium-term business growth activities, an increase in provision of policy reserves for minimum guarantees for variable life
insurance in the life insurance business, and lower gains on sale of securities in the life insurance and banking businesses. On the other hand, consolidated
net income is expected to increase due to the reduction in the corporate tax rate.
<Segment information for ordinary revenues and ordinary profit>■Life insurance business
Ordinary revenues are expected to decrease because we do not anticipate an increase in investment income backed by favorable market conditions,as was present in FY2014. Ordinary profit is expected to decrease because we anticipate an increase in spending for medium-term business growth
activities and an increase in provision of policy reserves for minimum guarantees for variable life insurance.
■Non-life insurance business
Ordinary revenues and ordinary profit are expected to increase in line with growth in net premiums written primarily for mainstay automobile insurance.
■Banking businessAlthough we anticipate business expansion under such a low interest rate environment
environment, ordinary revenues and ordinary profit are expected to decrease
because we do not anticipate an increase in gains on bond-dealing transactions including sale of bonds as was present in FY2014.
*The amount of consolidated net income for FY2015 (Forecast) is equivalent to the amount of “Net income attributable to parent company”
of Accounting Standard for Business Combinations (ASBJ Statement No. 21, on Sep. 13, 2013) and the related revision.

Sony Financial Holdings Inc. All Rights Reserved

31

Dividend Forecast

32

Sony Financial Holdings Inc. All Rights Reserved

Dividend Forecast for the Year Ending March 31, 2016
and Mid-term Dividend Policy
The proposed dividend for FY2015 is ¥55 per share, up ¥15 year on year.
-4th consecutive year of dividend increases since FY2012<Mid-term Dividend Policy> Our basic dividend policy is to steady increases in dividends in line with earnings growth over the
mediumdiandd llong tterms.
 We will enhance shareholder returns by revising upward our medium-term target for thedividend payout ratio into 40% to 50% of consolidated net income.
* We will determine specific dividend amounts for each fiscal year by taking into account a comprehensive range offactors, including capital adequacy, investment opportunities, business forecasts and legal and regulatory
developments.

■ Consolidated Net Income and Dividend Result/Forecast
FY2011FY2012FY2013

FY2014(Expected)

FY2015(Forecast)¥32.8 billion¥45.0billion¥40.5billion¥54.4billion¥57.0billion*

Net income per share¥75.43¥103.60¥93.11¥125.10¥131

Dividend per share

¥20

¥25

¥30

¥40

¥55

26.5%

24.1%

32.2%

32.0%

42.0%

Consolidated net income

Dividend payout ratio (consolidated)*The amount of consolidated net income for FY2015 (Forecast) is equivalent to the amount of “Net income attributable to parent company”
of Accounting Standard for Business Combinations (ASBJ Statement No. 21, on Sep. 13, 2013) and the related revision.

Sony Financial Holdings Inc. All Rights Reserved33Sony Life
Life’ss Preliminary MCEV and
Risk Amount Based on Economic Valueas of March 31, 2015

Please keep in mind that the validity of these calculations of MCEV as of March 31, 2015, has not been verified by outside specialists.
The calculation of MCEV as of March 31, 2015, in accordance with the MCEV principles and verified by outside specialists, is scheduled
to be announced on May 21, 2015.
A part of the calculations of MCEV as of December 31, 2014 adopted simplified method and has not been verified by outside specialists.

34

Sony Financial Holdings Inc. All Rights ReservedSony Life’s MCEV as of March 31, 2015
(Billions of yen)

MCEV

14.3.31

14.12.31

15.3.31

Change from
14.3.31

Change from
14.12.31

1,221.3

1,234.9

1,322.9+101.6+88.0

Adjusted net worth

722.1

1,171.2

1,119.2+397.1(52.0)

Value of existing business

499.1

63.8

203.7

(295.5)+139.914 3 3114.3.31

14 12 31
14.12.31

15 3 3115.3.31

New business value

55.2 (12M)28.2 (6M)

48.6 (12M)

New business margin

5.2%

2.9%

3.8%

(Billions of yen)

Notes:
1. New business margin equals new business value divided by present value of premium income.
2. Calculated MCEV as of December 31, 2014 by using updated economic assumptions and lapse and surrender rate and other assumptions as of March 31, 2014.

 Reasons for changes in MCEV・ MCEV as of March 31
31, 2015 increased ¥101.6¥101 6 billion from March 31
31, 2014
2014, due mainly to the contribution of new businessbusiness,the decrease in inflation rates, the effect of the reduction in the corporate tax rate. While the value of existing businessdecreased significantly due to a decline in interest rates, most of the decrease was offset with the benefit of ALM (by theincrease in the adjusted net worth).
・ MCEV as of March 31, 2015 increased ¥88.0 billion from December 31, 2014, due mainly to the contribution of new business,a rise in interest rates in Japanese yen, and the effect of the reduction in the corporate tax rate.
 Reasons for changes in new business margin
・ New business margin as of March 31, 2015 was down 1.4% from March 31, 2014, due mainly to a decline in interest rates.
31, 2015 was up 0.9%
0 9% from December 31
31, 2014
2014, due mainly to a rise in interest rates in・ New business margin as of March 31
Japanese yen, improvement in insurance-related assumptions, and the effect of the reduction in the corporate tax rate.

*Please see page 44 for changes on new business value*Please see page 47 for trend on JGB yields

Sony Financial Holdings Inc. All Rights Reserved35Sony Life’s Risk Amount Based on Economic Valueas of March 31, 2015
(after tax)
(Billions of yen)

14.12.31

14.3.3115.3.31

Insurance risk

654.5

709.6

724.2

Market-related risk

240.0

290.5

287.0

Of which, interest rate risk*

180.9

219.7

218.5

Operational risk

26 3
26.3

23 8
23.8

25 9
25.9

Counter party risk

1.3

3.0

1.8

Variance effect(257.8)(291.4)(293.4)

The risk amount based on economic value

664.3

735.5

745.5

(*) Interest rate risk excluding the variance effect within market-related risk.
(Billions of yen)

MCEV

14.3.31

14.12.31

1,221.3

1,234.9

15.3.31
1,322.9

 Maintained capital adequacy by controlling market-related risk.

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Life’s risks, comprehensively examined and including insurance risk andmarket-related risk.
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, which is a similar but
modified model based on the EU Solvency II (QIS5) standard method.
3. Calculated MCEV as of December 31, 2014 by using updated economic assumptions and lapse and surrender rate and other assumptions as of March 31, 2014.

Sony Financial Holdings Inc. All Rights Reserved

36

AppendixSony Financial Holdings Inc. All Rights Reserved37

Recent Topics 1
AEGON Sony Life Insurance
Launch of sales: December 1, 2009
Common stock: ¥26 billion (including capital surplus of ¥13 billion)*q y ownership:p Sonyy Life insurance Co Ltd 50%,, AEGON international B.V. 50%
EquityMarketing products: Individual Variable Annuities
Sales Channels: Lifeplanner sales employees and partner Banks (20*)
SA Reinsurance Ltd
Established： October 29
29, 2009
Common stock: ¥11 billion*
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Business： Reinsurance businessNote) AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50
50-50
50 joint ventures established by Sony Life and AEGON Group.
*As of May 15, 2015

Sony Bank’s Mortgage Loans through Sony Life
■Sonyy Life accounts for 22% of the balance of mortgage
g g loans as of March 31,, 2015
Sony Life accounts for 14% of the amount of new mortgage loans for FY2014*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
■Sony Life accounts for 4% of new automobile policies for FY2014*Sony Life started handling automobile insurance in May 2001.

Sony Financial Holdings Inc. All Rights Reserved

Recent Topics 2<Highlights for FY2014>2014-04-01"Sony Lifecare Inc." was established as a holding company to oversee the Group’s operations in the nursing care business.

2014-04-21

Sony Assurance began offering “Policyholders‘ Apps” for smart-phone users.

2014-05-02

Sony Life commenced sale of a new product: “Specialty Endowment Insurance.”

2014 06 18
2014-06-18

Sony Bank began offering “Omakase
Omakase Money Receiving Service
Service”

2014-07-09

Sony Life closed its representative office in Beijing.

2014-07-28

Sony Life entered into an agreement to acquire Sony Corporation’s headquarters site.

2014-08-01

Sony Bank entered tie-up with “Sony Real Estate” in mortgage loans.

2014-08-06

Sony Bank started ATM affiliation with Aeon Bank, Ltd.

2014-08-15

Sony Bank began offering interest rates on its mortgage loans based on customers’ own funds.

2014-10-01

2014-12-16

Sony Lifecare Group announced the opening of the first newly built nursing care home in Tokyo in spring, 2016.
Sonyy Life commenced sales of Livingg Benefit Whole Life Insurance ((Living
g Standard Type)yp ) and Living
g Standard Specialp
Provision 14.
Sony Bank began offering “Exchange Rate-Linked Deposits”

2015-01-07

Sony Assurance announced to open a customer service office in Kumamoto prefecture in July 20152014 10 02
2014-10-02

38

2015-02-23

Sonyy Bank began
g offering
g “SpecialpInterest Rates for Foreigng Currencyy Time Depositpwhen Depositingpg from Yen Funds”.

2015-02-23

Sony Assurance commenced sale of a PHYD(Pay How You Drive) type of automobile insurance “Gentle Driving Cash-Back Plan”

2015-04-01

Sony Life changed its President, Representative Directors.

2015-04-01

Sony Life opened its new sales office in Fukui prefecture.

2015-04-01

SmartLink Network, Sony Bank’s subsidiary, changed its corporate name to Sony Payment Services Inc.

2015-04-30

Sony Lifecare entered into an agreement to enter capital participation with Yuuai Holdings Co., Ltd.

2015-05-02

Sony Life commenced sale of a new product: “Lump-sum Payment Whole Life Insurance (No-notification Type) “Sony Financial Holdings Inc. All Rights Reserved39Sony 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)(Billions of yen)

Notes:
1. The above table includes monetary trusts other than trading-purpose securities.
2.Derivative financial products such as principal protected 30 year notes with Nikkei 225 index-linked coupons are included in the “Held-to-maturity-securities” above.
Principal protected 30 year notes with Nikkei 225 index-linked coupons
As of Mar. 31, 2013; Carrying amount: ¥43.3 billion, Fair market value: ¥52.2 billion, Net unrealized gain (losses): ¥8.8 billion
As of Mar. 31, 2014; Carrying amount: ¥43.8 billion, Fair market value: ¥56.0 billion, Net unrealized gain (losses): ¥12.2 billion
As of Mar. 31,, 2015;; Carrying
y g amount: ¥44.2 billion,, Fair market value: ¥57.5 billion,, Net unrealized gaing(losses):() ¥13.2 billion

Valuation gains (losses) on trading-purpose securities(Billions of yen)

Note: The above chart includes trading-purpose securities included in “monetary trusts,” etc

40

Sony Financial Holdings Inc. All Rights ReservedSony Life’s Interest Income and Dividends (Details)(Millions of yen)

FY2014FY2013

ChangeCash and deposits
Japanese governmentand corporate bonds
Japanese stocks

00( 36.0%)98,588107,383

+8.9%

397

464

+16.9%

Foreign securities

6,740

8,998

+33.5%

Other securities

460

430

(6.6%)

Loans

5 691
5,691

5 921
5,921

+4 0%
+4.0%

Real estate

10,250

10,327

+0.8%

31

66

+112.7%122,160

133,592+9.4%

Others
Total

Sony Financial Holdings Inc. All Rights Reserved41Sony Life’s Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Billions of yen)

1 600
1,600

1,491.6

1,400
1,200
,

1,201.9

1,238.7

1,066.5
947.4

1,000

1,152.5

1,135.8,

1,128.3

1,033.3

991.5
886.2

841.4

800
600
400
200
0

FY12 1Q
FY12.1Q

FY12 2Q
FY12.2Q

FY12 3Q
FY12.3Q

FY12 4Q
FY12.4Q

FY13 1Q
FY13.1Q

FY13 2Q
FY13.2Q

FY13 3Q
FY13.3Q

FY13 4Q
FY13.4Q

FY14 1Q
FY14.1Q

FY14 2Q
FY14.2Q

FY14 3Q
FY14.3Q

FY14 4Q
FY14.4Q

42

Sony Financial Holdings Inc. All Rights ReservedSony Life’s Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies
A
Annualized
li d premiumsiffrom new policies
li i

Of which, third-sector(Billions of yen)

25

22.0

21.8

19.0

20

18.5

17.2

16 8
16.8
15.2

14.6

15

18.9

18.5

17.4

13.2

10

5

4.4
0

FY12.1Q

5.0

5.2

3.6
FY12.2Q

FY12.3Q

FY12.4Q

3.9
FY13.1Q

3.0
FY13.2Q

3.6
FY13.3Q

2.9
FY13.4Q

Sony Financial Holdings Inc. All Rights Reserved

3.7
FY14.1Q

5.1
2.8
FY14.2Q

FY14.3Q

3.5
FY14.4Q

43

Sony Life’s Changes on New Business Value(Billions of yen)

FY14.4Q (3M)

11.7

Mar. 31, 2015
(12M)

+8.7*
Dec. 31, 2014
(9M)
Dec. 31, 2014
(9M)

48.6

[3.8%]**

36.9

28.2

[2.9%]**

Assumptions as of Mar. 31, 2015

Assumptionsp
as of Dec. 31, 2014

Notes:*Effected amount by valuating new business value as of Dec. 31, 2014 (9M) mainly with interest rates as of Mar. 31, 2015.
New business value increased due mainly to a rise in interest rates in Japanese yen, improvement in insurance-related assumptions, and the
reduction in the corporate tax rate
rate.
**Figures in [ ] show new business margin.

Sony Financial Holdings Inc. All Rights Reserved

44

Method of Measuring Risk Amount
Based on Economic Value (1) Market-related Risk*1

Interest rate risk
Fluctuations in net asset
value based on economic
value in response to theshocks in the right columns.
The same applies below.

Sony Life(Reference) EU Solvency II (QIS5)

Percentage increases or decreases differ for eachcurrency and term
term.
As for measuring interest rate risk in Japanese yen,introduced principal component analysis, where yield
curve changes are disaggregated into threecomponents, parallel shift, twist and butterfly, and theyield curve is shocked by each component
component.

Percentage increases or decreases differ for eachcurrency and term but no lower than 1%(Example)
For Yen 30-year, 30% decrease(Example)
For Yen 30-year, 33% decrease (parallel shift),
28% decrease (twist), 8% decrease (butterfly)

Equity risk

Listed equities 45%, Other securities 70%

Global 30%, Others 40%*2

Real estate risk

Actual real estate 25%

Real estate 25%

Credit risk = (market value) x (risk coefficient for eachcredit rating) x duration

Credit risk

Note that durations have caps and floors, depending
on credit ratings.

Same as on the left

(Example)
Rating A: Risk coefficient (1.4%), cap (23), floor (1)Currency risk

30% downside fluctuation

25% downside fluctuationNotes
p items as of Mar. 31, 2015.
1. Principal
2. Standard risk coefficients are global: 39%/other: 49%. Symmetric adjustment (an adjustment of±10% of the average value of the stock price index during a defined period in
the past) is applied; as of the QIS5 trial introduction (Dec.31, 2009), these were 30%/40%.

Sony Financial Holdings Inc. All Rights Reserved

45

Method of Measuring Risk Amount
Based on Economic Value (2) Insurance Risk*1

Sony Life(Reference) EU Solvency II (QIS5)

Mortalityy risk

Mortalityy rate increases byy 15% for each yearyelapsedpSame as on the leftLongevity risk

Mortality rate decreases by 20% for each year
elapsedSame as on the left

Lapse risk

The largest amount of these; *2

The largest amount of these;•Lapse rate increases by 50% for each year elapsed• Increases by 50% in the assumed rates of• Lapse rate decreases by 50% for each year elapsed• 30% of policies on which surrender value is inexcess of best estimate liability are immediately
surrendered

Expense risk

Disability risk

Operating expenses increase by 10% for each year
elapsedRate of inflation rises by 1%

lapsation for Life module, 20% for Health module•Decreases by 50% in the assumed rates oflapsation for Life module, 20% for Health module• 30% of policies (70% for group annuities, etc.) on

which surrender value is in excess of best
estimate liability are immediately surrendered

Same as on the left

Rate of occurrence increases by 35% in the first fiscal Rate of occurrence increases by 35% in the firstyear, risingi ibby 25% forf eachh year thereafterthftfi
fiscall year, rising
i i bby 25% forf eachh year thereafter.
thft
Recovery rate decreases by 20%.

Notes
1. Principal items as of Mar. 31, 2015.
2. At Sony Life, lapse risk is calculated by computing and adding together the largest amount of three options for each insurance policy

Sony Financial Holdings Inc. All Rights Reserved

46

JGB Yields

A off theAsth endd off eachh monthth

Sony Financial Holdings Inc. All Rights Reserved

47

Contact:
Communications & Investor Relations Department
Sony Financial Holdings Inc.
Inc
TEL： +81-3-5785-1074

Sony Financial Holdings Inc. All Rights Reserved

48