Summary of Q&A at 1H FY2007 Teleconference for
Domestic Institutional Investors and Analysts

Time/date:November 16, 2007, 17:30–18:10

Respondents: Hiromichi Fujikata, Executive Vice President and Representative Director of SFH
Masamitsu Shimaoka, Director of Sony Life
Yuro Fujiyama, Director of Sony Assurance
Hidehiko Nakamura, Director of Sony Bank

Q&A (Summary)Q) Looking at Sony Life’s investment income, rental income on real estate rose substantiallycompared with the first half of the prior fiscal year. What was the reason? Recognizing that thereis likely to be a corresponding increase in investment expenses to depreciate the rental property,
is this trend expected to continue?
A) (Sony Life) In the first half of the previous year, Sony City in Shinagawa (Sony Corporation’sheadquarters building) was not yet operational, so the revenue/expense balance was negative.
During the first half of the current year, the building became operational, so rental income
improved significantly. We expect the trend from the first half of this term to continue.

Q) Why did Sony Bank’s foreign currency deposits increase?
The level of these deposits has remained flat for the past two years. Was the increase due to yen
appreciation during the term?
A) (Sony Bank) As you noted, yen appreciation (from August onward) caused demand for foreign
currency deposits to increase.

Q) I understand that Sony Bank’s general and administrative expenses are high because they
include the costs of interest rate swaps and other derivatives transactions. Is the recent market
environment affecting the bank negatively?
A) (Sony Bank) Derivatives transactions are included in other operating income and other operating
expenses, but the results of bond trading and related derivatives were poor in the preceding term.
Net other operating income improved ¥0.3 billion compared with the first half of the prior fiscalyear, because trading investment income improved significantly.

Q) Will Sony Assurance’s expenses increase in the second half because of system-relatedinvestments?
A) (Sony Assurance) We recognize strengthening IT as an important issue. System-related1investments will continue into the future, but rather than in the second half we expect these costs
to emerge in the next fiscal year and beyond.

Q) Do you not disclose non-consolidated operating performance forecasts for principal
subsidiaries?
A) (SFH) We do not disclose these figures.

Q) In your operating performance forecasts, can you disclose approximate increases for eachcompany?
A) (SFH) We have disclosed segment information (related to performance figures) for the first half,
but we have not provided a breakdown by amount in our forecasts for the full year.

Q) What are Sony Life’s plans for disclosing European embedded value (EEV)? T&D Holdings
began disclosing EEV this period, and this figure was slightly lower than for traditional
embedded value. Would EEV be higher than traditional EV for Sony Life, as its new policy
amount is high?
A) (Sony Life) We are still considering how to disclose EEV from FY2008 onward, so we will
refrain from making comments on the impact of shifting to EEV.

Q) How is the recruiting situation for Sony Life’s Lifeplanner sales employees, and how isretention?
A) (Sony Life) The number of people is down 1.6% compared with the first half of the prior fiscal
year. As a sales organization, though, their overall performance is measured by multiplying
quality (productivity) by quantity (number of people). The number of people increases in linewith higher productivity. Rather than merely increasing the number of people, leading todeterioration in quality in a vicious cycle, we recruit judiciously and focus on raising individualproductivity.

Q) Please comment qualitatively on the new policy amount (regarding the fact that the new policy
amount is up but annualized premiums for new policies are down).
A) (Sony Life) Death protection insurance was up, but medical protection and other third-sector
products were down. The new policy amount was up compared with the first half of the priorfiscal year, but annualized premiums were nearly flat. The new policy amount increased fordeath protection insurance, which is a pivotal product for Sony Life. We see this as a positivedevelopment.

2Q) In the second half of FY2006, Sony Life core profit calculation included other one-time lossesof ¥31.1 billion as a provision for policy reserve. What are the company’s future plans for suchprovisions?
Ａ) (Sony Life) This provision in FY2006 related to the risk that actual policyholder premiums
could be insufficient to cover future payments (on specific policies, not corresponding to
profitability issues on any specific product category), This one-time provision for policy reserve
relates to all future liabilities for payment under the relevant policies. We have no plans to makemajor provisions in the policy reserve in the future.

Q) What specific other factors are contributing to Sony Life’s increase in costs in the second half?
A) (Sony Life) We do not necessarily anticipate an increase in costs. Rather, our expectations forthe asset investment environment are conservative.

Q) Sony Life’s lapse and surrender rate is up compared with the first half of the prior fiscal year. Is
this because the number of Lifeplanner sales employees has decreased?
A) (Sony Life) Although the lapse and surrender rate was up on a policy amount basis, it wasactually down in comparison with the number of policies. The increase on a policy amount basis
simply reflects the reality of lapses and cancellations of some high-value policies. On the otherhand, persistency rates were up for individual life insurance. These shifts are within the expected
scope of fluctuation, and increases in the lapse and surrender rate on a half-year basis do notnecessarily represent an upward trend.

Q) Did Sony Life disclose its average assumed interest rate and negative spread amount for the firsthalf?
A) (Sony Life) We did not disclose our average assumed interest rate on a half-year basis. The
negative spread amount in the first half was ¥14.4 billion, down ¥3.3 billion compared with the¥17.7 billion recorded in the first half of FY2006.

Q) What is the share of stocks and convertible bonds in Sony Life’s general account? (Monetarytrusts include stocks and convertible bonds within Sony Life’s general account breakdown,
which makes the net amounts difficult to understand.)A) (Sony Life) Stocks represent under 10%, and convertible bonds make up more than 10%. This
represented no significant change from the March 31, 2007, level.

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