Consolidated Financial Summary (Japanese GAAP)
for the Fiscal Year Ended March 31, 2020
May 19, 2020
Sony Financial Holdings Inc.
(URL: https://www.sonyfh.co.jp/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Shigeru Ishii, President and Representative Director
Inquiries:
Hironobu Kuriyama, General Manager-Investor Relations Dept.
(Telephone: +81-3-5290-6500)(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the fiscal year ended March 31, 2020
(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change

1,781,420

9.3

111,880

19.2

74,42919.9

1,629,182

8.3

93,85640.4

62,074

19.6

For the year ended
March 31, 2020
For the year ended
March 31, 2019
Note: Comprehensive income:

Profit Attributable to Owners of
the Parent

Ordinary Profit

For the year ended March 31, 2020:¥

62,192 million:

8.3%

For the year ended March 31, 2019:¥57,415 million:

10.0%

Net Income on
Shareholders’EquityNet Income per
Share

Net Income per
Share(Fully Diluted)

Yen

Yen

%

%

%

171.09171.04

11.1

0.8

6.3

142.69142.67

9.7

0.7

5.8

For the year ended
March 31, 2020
For the year ended
March 31, 2019
Notes: Equity in earnings (losses) of affiliates:

For the year ended March 31, 2020:¥(11) million

For the year ended March 31, 2019:¥(1,748) million

Ordinary Profit on Ordinary Profit on
Total Assets
Ordinary Revenues(2) Financial conditions
Total Assets
As of March 31, 2020
As of March 31, 2019
Note: Net assets attributable to shareholders:

Total Net Assets

Net Asset Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

15,125,710
13,468,215

691,978
656,846

4.6
4.9

1,584.90
1,505.20

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at end of
the period

As of March 31, 2020:¥ 689,512 million

As of March 31, 2019:¥ 654,800 million(3) Cash flows
Cash Flows fromOperating Activities
For the year ended
March 31, 2020
For the year ended
March 31, 2019

Cash Flows from
Investing Activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

878,726(810,444)(27,707)549,964

802,921(659,815)(26,645)

509,594

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2019
For the year ended
March 31, 2020
For the year ending
March 31, 2021
(forecast)

AnnualDividend
AmountDividend
Payout
Ratio

Dividend on
Net Assets

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

－

0.00

－

62.50

62.50

27,189

43.8

4.3

－

0.00

－

70.00

70.00

30,453

40.9

4.5

－

0.00

－

0.00

0.00

－

Notes: As announced today in the “Announcement of Opinion in Support of Tender Offer for Shares, Etc. in Sony Financial Holdings Inc. by Sony Corporation,
the Controlling Shareholder, and Recommendation to Tender Shares, Etc.”, Sony Financial Holdings Inc. (the “Company”) made a resolution at themeeting of its Board of Directors held on May 19, 2020 to express its opinion in support of the tender offer for the Company’s common shares (the“Company’s Common Shares”) and the Stock Acquisition Rights to be conducted by Sony Corporation (the “Tender Offeror”), and to recommend that theshareholders and the holders of the Stock Acquisition Rights of the Company accept the tender offer.
The resolution of the Board of Directors stated above was made on the assumption that the Tender Offeror intends to make the Company its whollyowned subsidiary through the tender offer and a series of subsequent procedures and that the Company’s Common Shares will be delisted.
As announced on May 13, 2020, the Company has withdrawn the dividend forecast for the fiscal year ending March 31, 2021. However, for the above
reason, the Company made a resolution at the meeting of its Board of Directors held on May 19, 2020 to revise the dividend forecast for the fiscal year
ending March 31, 2021, and not to pay a dividend for the fiscal year ending March 31, 2021, subject to the successful completion of the tender offer.

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2021
(Percentage figures represent changes from the results of the previous fiscal year.)
Profit Attributable to
Net Income per
Ordinary Revenues
Ordinary Profit
Owners of the Parent
Share
For the year ending
March 31, 2021

Millions of yen% change

Millions of yen% change

Millions of yen% change

Yen

－

－

－

－

－

－

－

Notes: Due to the numerous uncertainties about how the COVID-19 pandemic will affect our operating performance, calculating a financial forecast rationally is
problematic at present, since it is currently difficult to predict when the COVID-19 pandemic to get settled and the pace of the recovery of businessactivities and others. Accordingly, our consolidated financial forecast for the fiscal year ending March 31, 2021 are undetermined. We will promptly
disclose our financial forecast once rational calculation becomes possible.

4. Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of
consolidation): Yes(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: None(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury stocks)
As of March 31, 2020:
435,087,405 shares
As of March 31, 2019:
435,062,983 shares(b) Number of treasury stocks
As of March 31, 2020:
37,469 shares
As of March 31, 2019:37,425 shares(c) Weighted-average number of shares
For the year ended March 31, 2020:
435,041,822 shares
For the year ended March 31, 2019:
435,016,259 shares
Audit of Financial Statements
This earnings report is exempt from audit procedure of certified public accountants or audit firm.

Content of Supplemental Materials
I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance ………………………………………

2

2. Qualitative Information on Consolidated Financial Position ……………………………………………

4

II. Status of the Corporate Group ………………………………………………………………
III. Basic Views on Selection of Accounting Standards………………………………………
IV. Consolidated Financial Statements

5

1. Consolidated Balance Sheets ……………………………………………………………………………

6

5

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

8(Consolidated Statements of Comprehensive Income) …………………………………………………

11

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

12

4. Consolidated Statements of Cash Flows…………………………………………………………………

14

5. Notes to the Consolidated Financial Statements
1) Note on Going Concern ………………………………………………………………………………

162) Segment Information …………………………………………………………………………………

163) Per share data…………………………………………………………………………………………

194) Subsequent Events……………………………………………………………………………………

20

V. Attachment
Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 and Sony Life’s Preliminary
MCEV as of March 31, 2020……………………………………………………………………………

22* The conference call for explaining the Sony Financial Group’s financial results will be held at 17:30 (JST), May
19, 2020. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on May 19, 2020 after 15:00 (JST), the translation of
the conference call (audio) on May 20 and the Q&A summary (text) at a later date on the Financial Results pageof our website:
https://www.sonyfh.co.jp/en/financial_info/results/* We will upload the press releases on Sony Life’s Market Consistent Embedded Value as of March 31, 2020,
scheduled as below.
・ Full report: Scheduled to be uploaded on June 9, 2020 at 15:00 (JST)Please see further details at our website: https://www.sonyfh.co.jp/index_en.html* On May 19, 2020, 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 theirfinancial results for the year ended March 31, 2020. SFH has prepared an English-language summary of thoseJapanese announcements made by the above subsidiaries, solely for convenience of non-Japanese readers.

- 1 -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, 2020 (from April 1, 2019 to March 31, 2020), the Japanese economy remained solidin the first half but went into a tailspin in the second half. In the first half, whereas foreign demand weakened owing tosluggish global demand for IT products and U.S.-China trade tensions, domestic demand, in particular consumer spending,propped up the economy as the nation’s employment conditions continued to improve on the back of labor shortages. In thesecond half, however, even domestic demand collapsed due to the consumption tax rate hike that dampened demand, alongwith damage sustained in major typhoons. On top of that, after the start of 2020, the global pandemic of coronavirus disease(COVID-19) made a recession inevitable not only in Japan but also worldwide, as lockdown measures to contain COVID-19
caused economic activity to stagnate.
Bond markets were strongly affected by U.S. monetary policy. In mid-2019, the U.S. Federal Reserve decided to cut its policy
rate to prepare for a possible economic slowdown stemming from the country’s trade tensions with China. The decision led toa decline in U.S. market interest rates, which pushed yields on 10-year Japanese government bonds (JGBs) down to aroundnegative 0.3% in September, from about negative 0.1% in April. Nevertheless, once the Bank of Japan voiced concerns about
the excessive interest rate decline, those yields turned upward, reaching around 0% in February 2020. Then, March saw sharp
fluctuations in interest rates, induced by the COVID-19 pandemic. 10-year JGB yields dropped to negative 0.18% following
the U.S. Federal Reserve’s policy rate cut to 0%, but subsequently bounced back to near 0% after the U.S. government
unveiled a massive stimulus package.
In foreign exchange markets, during the first half of the year ended March 31, 2020, the U.S. dollar weakened against the yen
in parallel with the lowering of U.S. interest rates, from the ¥111 level in April 2019 to the ¥105 level in August. From
September, though, as global stock markets performed strongly, the safe-haven currency yen sold off, the U.S. dollar reachingthe ¥112 level in February 2020. In March, when it became increasingly apparent that the COVID-19 pandemic would send
the entire world into a recession, risk-averse investors bought the yen, propelling the currency to the ¥101 level. Thereafter,
mounting anxiety drove investors to secure U.S. dollar cash on hand, resulting in the U.S. dollar strengthening sharply to the¥111 level.
Amid these circumstances, the Sony Financial Group sought to become the financial services group most highly trusted bycustomers. To this end, we undertook a variety of measures to maintain a sound financial base, reinforce and expand our
product and service offerings in order to deliver high-value-added products and high-quality services to each of ourcustomers, and enhance our internal control system.
Consolidated ordinary revenues increased 9.3% year on year, to ¥1,781.4 billion, owing to increases in ordinary revenues
from all the businesses: life insurance, non-life insurance and banking businesses. Consolidated ordinary profit increased
19.2% year on year, to ¥111.8 billion, owing to increases in ordinary profit from all the above businesses. Profit attributableto owners of the parent was up 19.9% year on year, to ¥74.4 billion.

- 2 -Operating results by business segment are as described below.
Ordinary Revenues(Billions of yen)
Year ended
March 31, 2019
(Apr. 1, 2018, to Mar. 31, 2019)Year ended
March 31, 2020
(Apr. 1, 2019, to Mar. 31, 2020)

1,464.3

1,604.7

9.6

Non-life insurance business

115.1

121.7

5.8

Banking business

46.0

50.2

9.2

1,625.4

1,776.7

9.3

Other*1

6.6

7.5

12.9

Intersegment adjustments

(2.9)

(2.8)

－

1,629.1

1,781.4

9.3Life insurance business

Subtotal

Consolidated

Change (%)

Ordinary Profit(Billions of yen)
Year ended
March 31, 2019
(Apr. 1, 2018, to Mar. 31, 2019)Year ended
March 31, 2020
(Apr. 1, 2019, to Mar. 31, 2020)

Life insurance business

78.2

94.3

20.7

Non-life insurance business

6.8

8.0

17.0

Banking business

9.5

10.6

11.4

94.7

113.1

19.5

Other*1

(1.0)

(1.4)

－

Intersegment adjustments*2

0.1

0.1

4.5

93.8

111.8

19.2

Subtotal

Consolidated*1: “Other” consists of nursing care business and venture capital operations.

*2: “Intersegment adjustments” of the ordinary profit are mainly due to SFH and eliminations of intersegment transactions.

- 3 -Change (%)

2) Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2021
Due to the numerous uncertainties about how the COVID-19 pandemic will affect our operating performance, calculating afinancial forecast rationally is problematic at present, since it is currently difficult to predict when the COVID-19 pandemic toget settled and the pace of the recovery of business activities and others. Accordingly, our consolidated financial forecast for
the fiscal year ending March 31, 2021 are undetermined. We will promptly disclose our financial forecast once rational
calculation becomes possible.
In response to the growing COVID-19 pandemic, SFH and its Group companies in principle refrain from conducting businessface to face, out of consideration for the health and safety of our customers, business partners and employees. We have also
introduced teleworking and other measures to help curtail infection.
At Sony Life, which accounts for the largest portion of the consolidated revenue and profit, Lifeplanner sales employees havesuspended their face-to-face sales activities. If the situation continues for a long period, it may have a major impact on future
performance, with the number of new policies falling and expenses rising in response to the situation.
Going forward, Sony Life plans to gradually resume face-to-face sales activities, by taking into consideration of the relaxationof restricted movement request and pace of the resumption of economic activities. In addition, Sony Life plans to enhance its
response to the situation, by gradually increasing its use of telephone- and video-based consulting tools.

2. Qualitative Information on Consolidated Financial Position
1) Assets, Liabilities and Net Assets
As of March 31, 2020, total assets amounted to ¥15,125.7 billion, up 12.3％ from March 31, 2019. Among major
components of assets, securities, mostly Japanese government bonds, amounted to ¥11,909.1 billion, up 14.8％ from March
31, 2019. Loans came to ¥2,187.7 billion, up 12.6％.
Total liabilities were ¥14,433.7 billion, up 12.7％ from March 31, 2019. Major components of liabilities included policy
reserves and others of ¥10,731.4 billion, up 13.2％, and deposits totaled ¥2,440.7 billion, up 6.0％.
Total net assets were ¥691.9 billion, up 5.3％ from March 31, 2019. This included net unrealized gains (losses) on
available-for-sale securities, net of taxes, which decreased ¥13.9 billion, to ¥114.8 billion.

2) Cash FlowsNet cash provided by operating activities for the year ended March 31, 2020, was ¥878.7 billion, primarily due to income
from insurance premiums in the life insurance business. The amount of net cash provided was up 75.8 billion (9.4%) year on
year.
Net cash used in investing activities was ¥810.4 billion, mainly because payments to acquire securities exceeded proceedsfrom sale and redemption of securities in the life insurance and banking businesses. The amount of net cash used increased¥150.6 billion (22.8%), year on year, mainly because of an increase in payments to acquire securities in the life insurance
business.
Net cash used in financing activities came to ¥27.7 billion because of payments for cash dividends. Net cash used in these
activities was up ¥1.0 billion (4.0%) year on year.
As a result of the above factors and others, cash and cash equivalents at March 31, 2020, amounted to ¥549.9 billion, up¥40.3 billion (7.9%) from March 31, 2019.

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 year ended March 31, 2020.

- 4 -II. Status of the Corporate GroupThe Sony Financial Group is composed chiefly of Sony Life, Sony Assurance and Sony Bank. These companies are direct
subsidiaries of SFH, the financial holding company.
The Sony financial Group are positioned as shown in the following organizational chart.
[Organizational chart] (As of March 31, 2020)

Note: AEGON Sony Life Insurance Co.,Ltd. changed its trade name to “Sony Life With Insurance Co.,Ltd.,” as of April 1, 2020.

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

- 5 -IV. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020¥¥

AssetsCash and due from banks

415,894549,964

Call loans and bills bought

93,700－

Monetary claims purchased

4,916

6,006

291,324

38,067

Securities

10,373,188

11,909,172

Loans

1,942,546

2,187,792

104,128

109,372

Land

63,10665,562

Buildings

30,89930,072

Leased assets

6,536

10,669Construction in progress

77

66

Other tangible fixed assets

3,508

3,002

Money held in trust

Tangible fixed assets

Intangible fixed assets

43,90954,590Software43,32750,461

Goodwill

551

4,097

Other intangible fixed assets

30

32

Due from reinsurers

1,341

4,936

Foreign exchanges

8,471

3,019

159,361

221,762

Net defined benefit asset

3,476

3,391

Deferred tax assets

27,556

39,210Reserve for possible loan losses(1,602)(1,575)

Other assets

Total Assets

¥

- 6 -

13,468,215¥

15,125,710

(Millions of yen)
As of March 31, 2019

As of March 31, 2020¥¥

Liabilities
Policy reserves and others
Reserve for outstanding claims

9,479,071

10,731,488

78,285

81,2389,396,241

10,645,842

4,544

4,407

Due to agencies

2,073

2,471

Due to reinsurers

5,769

5,745

Policy reserves
Reserve for policyholders’ dividends

Deposits

2,302,313

2,440,783

Call money and bills sold

130,611

151,256

Borrowed money

203,871

241,826

Foreign exchanges

244

684

Bonds payable

20,00020,000

Other liabilities

578,477

747,676

Reserve for employees’ bonuses

4,377

4,297

Net defined benefit liability

34,081

34,170Reserve under the special laws

50,34353,060Reserve for price fluctuations

50,34353,060

Deferred tax liabilities

24

160

Deferred tax liabilities on land revaluation

109

109

12,811,368

14,433,732

Common stock

19,96319,994

Capital surplus

191,193

191,224

Retained earnings

319,886

367,127

(55)

(55)

530,987

578,291

128,800

114,868

Total Liabilities
Net Assets

Treasury stock
Total shareholders’ equity
Net unrealized gains (losses) on available-for-sale securities, net oftaxes
Net deferred gains (losses) on hedging instruments, net of taxes(1,077)(373)

Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,470)(835)

Total accumulated other comprehensive income

123,812111,221

Subscription rights to shares

149

215

Non-controlling interests

1,896

2,250

656,846

691,978

Total Net Assets
Total Liabilities and Net Assets

¥

- 7 -

13,468,215¥

15,125,710

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

Ordinary Revenues
Ordinary Revenues from the Life Insurance Business
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Income from money held in trusts, net
Gains on trading securities, net

For the year ended
March 31, 2019

For the year ended
March 31, 2020¥¥

1,629,182

1,781,420

1,461,632

1,602,154

1,134,048

1,338,848

1,130,676

1,331,441

3,372

7,407

278,950

208,620

166,953

181,812

4,490

4,086

－

317

Gains on sale of securities

6,107

3,637

Gains on derivatives, net－

18,766

13,455－－1Foreign exchange gains, net
Other investment income
Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written

87,943－

48,63354,685

115,101

121,727

113,173

119,746

113,101

119,352

Interest and dividends on deposits of premiums

72

74

Reversal of reserve for outstanding losses and claims

－

320

1,857

1,935

Investment income
Interest income and dividends

1,372

1,337

Gains on sale of securities

557

672

Transfer to interest and dividends on deposits of premiums

(72)

(74)

69

44

45,76649,99731,92633,950Interest income on loans

17,47318,729Interest income and dividends on securities

14,382

15,148Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

Interest income on call loans and bills bought

10Interest income on deposits with banks

62

61

Other interest income

7

10Fees and commissions

9,398

12,101Other operating income
Gains on foreign exchange transactions, net
OthersOther ordinary income
Other
Other ordinary income

3,926

3,515

3,599

3,258

326

256

515

430

6,681

7,541

6,681

7,541
(Continued)- 8 -(Millions of yen)

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the year ended
March 31, 2019

For the year ended
March 31, 2020¥¥

1,535,325

1,669,540

1,386,074

1,510,288

457,252

521,198

Insurance claims

92,997

98,533

Annuity payments

13,48915,036

Insurance benefits

131,824

157,074

Surrender payments

204,351

231,772

Other payments

3,659

3,732

Reinsurance premiums

10,92915,048704,780

678,724

2,433

2,444

702,346

676,28000Investment expenses

24,65091,944

Interest expenses

1,604

5,064

Losses on trading securities, net

126－

Losses on sale of securities

34

50

Losses on valuation of securities

4,026

6,316

Losses on derivatives, net

13,925－

Foreign exchange losses, net

－

4,884

Provision for reserve for possible loan losses

329

43

Depreciation of real estate for rent and others

1,599

1,637

Other investment expenses

3,003

2,812

－

71,133Operating expenses

146,776

157,537

Other ordinary expenses

52,61460,883

Insurance claims and other payments

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

Losses on separate accounts, net

Ordinary Expenses from the Non-life Insurance Business

107,413112,785

Underwriting expenses

77,92581,797Net losses paid

56,60860,315

Loss adjustment expenses

8,220

9,001

Net commission and brokerage fees

1,214

1,141

Provision for reserve for outstanding losses and claims

1,139

－

Provision for underwriting reserves

10,741

11,338Investment expenses

10

Losses on sale of securities

0－

Other investment expenses

1

029,48230,983Operating, general and administrative expenses
Other ordinary expenses

4

5(Continued)- 9 -(Millions of yen)

Ordinary Expenses from the Banking Business

For the year ended
March 31, 2019

For the year ended
March 31, 2020¥¥

Interest expenses

34,13537,483

8,566

9,194

6,744

7,274

Interest expenses on call money and bills sold

88

268

Interest on payables under repurchase agreements

312

348

Interest expenses on deposits

Interest on borrowed money

0

2

Interest expenses on bonds

12

13

1,400

1,280

7

6

Fees and commissions

5,883

7,077

Other operating expenses

485

126

18,786

20,902

414

181

7,702

8,982

7,702

8,982

93,856

111,8800264Interest expenses on interest rate swaps
Other interest expenses

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

00Gains on step acquisitions－

248

Others

－

16

2,367

3,139

Losses on disposal of fixed assets

92

120

Impairment losses

67

21

Provision for reserve under the special laws

2,207

2,695

Provision for reserve for price fluctuations

2,207

2,695

Extraordinary Losses－

301

Provision for Reserve for Policyholders’ Dividends

Others

2,146

2,422

Income Before Income Taxes

89,343

106,583

Income Taxes - Current

31,87137,747

Income Taxes - Deferred(4,853)(5,925)

Total Income Taxes

27,01831,822

Profit62,32574,761

250

331

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent¥- 10 -

62,074¥74,429(Consolidated Statements of Comprehensive Income)(Millions of yen)

Profit

For the year ended
March 31, 2019

For the year ended
March 31, 2020¥¥

62,32574,761Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, netof taxes(5,215)(13,907)

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

(174)

703

Remeasurements of defined benefit plans, net of taxes

456

658

Share of other comprehensive income of affiliates accounted forusing equity method

23

(23)

(4,909)(12,569)

Total other comprehensive income
Comprehensive income¥

57,415¥62,192(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 11 -

57,167

61,838248353

3. Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2019
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

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

Issuance of new shares

35

35

Dividends from surplus－¥

Total shareholders’ equity(55)¥ 494,941

－

－

71

－

(26,099)－(26,099)

－

－

－

－

－

－

－

62,074－62,074

－

－

－

－

－

35

35

35,975－36,046¥ 19,963¥ 191,193¥ 319,886(55)¥ 530,987

Changes during the period

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

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

(2,439) ¥(1,929) ¥ 128,719

¥

97

¥

Total net assets

1,648¥ 625,406

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

71

Dividends from surplus

－

－

－

－

－

－

－

(26,099)

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

62,074(5,191)

(174)

－

458

(4,907)52

248(4,606)(5,191)

(174)

－

458

(4,907)52

248

31,439(1,077) ¥(2,439) ¥1,896¥ 656,846

Purchase of treasury
stock
Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥ 128,800¥- 12 -(1,470) ¥ 123,812

¥

149

¥

For the year ended March 31, 2020
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

Treasury stock¥ 19,963¥ 191,193¥ 319,886

Issuance of new shares

31

31

Dividends from surplus－¥

Total shareholders’ equity(55)¥ 530,987

－

－

62

－

(27,189)－(27,189)

－

－

－

(0)

(0)

－

－

74,429－74,429

－

－

－

－

－

31

31

47,240(0)47,303¥ 19,994¥ 191,224¥ 367,127(55)¥ 578,291

Non-controllinginterests

Total net assets

Changes during the period

Purchase of treasury
stock
Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥Total accumulated other comprehensive income
Net unrealized Net deferred gains
Total accumulated Subscription
gains (losses) on(losses) on
Remeasurements
Land revaluation,otherrights to sharesavailable-for-salehedgingof defined benefit
net of taxes
comprehensive
securities,
instruments,
plans, net of taxes
incomenet of taxes
net of taxes

Balance at the beginning of
the period¥ 128,800 ¥(1,077) ¥(2,439) ¥(1,470) ¥ 123,812 ¥149 ¥1,896 ¥

656,846

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

62

Dividends from surplus

－

－

－

－

－

－

－

(27,189)

－

－

－

－

－

－

－

(0)

－

－

－

－

－

－

－

74,429(13,931)

703

－

635

(12,591)65

353(12,171)(13,931)

703

－

635

(12,591)

65

353

35,131¥ 114,868 ¥(373) ¥

(2,439) ¥215 ¥2,250 ¥

691,978

Purchase of treasury
stock
Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod- 13 -(835) ¥ 111,221 ¥4. Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2019

For the year ended
March 31, 2020¥¥

Cash flows from operating activities
Income before income taxes

89,343

106,583

Depreciation of real estate for rent and others

1,599

1,637

Depreciation and amortization

11,297

12,98667

21

Impairment losses
Amortization of goodwill

32

62

3,573

2,105

713,088

687,618

0

0

2,146

2,422

449

(26)

Increase (decrease) in net defined benefit liability

1,630

1,735

Increase (decrease) in reserve for price fluctuations

2,207

2,695

Interest income and dividends(200,253)(217,102)(Gains) losses on securities(94,790)

54,681

Interest expenses

10,69814,984Losses (gains) on derivatives

13,925(18,766)

Exchange (gains) losses

Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve
interest portion of reserve for policyholders’ dividends
Provision for (reversal of) reserve for policyholders’ dividends
Increase (decrease) in reserve for possible loan losses(17,258)

26,169(Gains) losses on disposal of tangible fixed assets

78

124

Losses (gains) on step acquisitions

－

(248)

Equity in (gains) losses of affiliates

1,748

11

Net (increase) decrease in loans(147,727)(235,023)

Net increase (decrease) in deposits

143,031

140,591

30,00037,923

Net increase (decrease) in call money and bills sold

54,902

41,448Net (increase) decrease in call loans and bills bought

461(1,090)Net (increase) decrease in foreign exchange (assets)

874

5,452

Net increase (decrease) in foreign exchange (liabilities)

16

440

Others, net

21,467

48,385

Subtotal

Net increase (decrease) in borrowed money (excluding
subordinated borrowings)

642,611715,825

Interest and dividends received

205,869

217,591

Interest paid

(10,221)(15,689)

Policyholders’ dividends paid

(3,086)(2,558)

Income taxes paid

(32,251)(36,441)

802,921878,726

Net cash provided by (used in) operating activities(Continued)- 14 -

(Millions of yen)
For the year ended
March 31, 2019

For the year ended
March 31, 2020¥¥

Cash flows from investing activities
Investments in money held in trust
Proceeds from money held in trust(1,044)(1,284)

4,522

4,047

(1,219,208)(1,360,076)

Proceeds from sale and redemption of securities

526,015

489,737

Investments in loans(63,716)(71,794)

Collections of loans

30,34135,463

Net increase(decrease) in payables under repurchase agreements

48,140188,364

Net gains (losses) from the settlement of derivative financial
instruments

7,389(2,378)Net increase (decrease) in collateral for securities lendingtransactions

27,166(73,475)124

421(640,270)(790,973)

162,651

87,752(1,255)(4,357)1

0

Purchases of securities

Others, net
Total of net cash provided by (used in) investment
transactions
Total of net cash provided by (used in) operating activities andinvestment transactions
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchases of intangible fixed assets(17,794)(18,799)

Purchase of securities of a non-consolidated subsidiary(50)(1,900)

Proceeds from purchases of shares of subsidiaries resulting inchange in scope of consolidation

－

8,537

(300)

(2,750)Purchases of securities of affiliates
Others, net
Net cash provided by (used in) investing activities

(147)

(200)

(659,815)(810,444)

4,640

6,400

Cash flows from financing activities
Proceeds from debt borrowing
Repayments of debt

(4,712)(6,367)

Cash dividends paid

(26,095)(27,187)

－

(0)

(476)

(551)

(26,645)(27,707)

0(204)

Net increase (decrease) in cash and cash equivalents

116,461

40,370Cash and cash equivalents at beginning of the period

393,133

509,594

Purchases of treasury stock
Others, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of the period¥- 15 -

509,594¥549,964

5. Notes to the Consolidated Financial Statements
1) Note on Going Concern
Not applicable.

2) Segment Information(1) Outline of reportable segments
The Sony Financial Group’ s reportable 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., Ltd., Sony Assurance Inc., Sony Bank Inc., Sony
Lifecare Inc., and Sony Financial Ventures 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, and other regulations.
The Sony Financial Group consists of three reportable segments: the life insurance business, the non-life insurance
business and the banking business.
●The life insurance business consists of Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd.(changed
its name to Sony Life With Insurance Co., Ltd. on April 1, 2020) and SA Reinsurance Ltd.
●The non-life insurance business consists of Sony Assurance Inc.
●The banking business consists of Sony Bank Inc., Sony Payment Services Inc., SmartLink Network Hong Kong
Limited. and SmartLink Network Europe B.V..

- 16 -

(2) Segment Information by reportable segment
For the year ended March 31, 2019
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets¥ 1,461,632
2,735
1,464,367¥
78,213
10,380,274

¥

¥

¥

115,1011
115,102
6,897
219,672

Bankingbusiness

Total¥

45,766
252
46,018¥9,597
2,878,879

Other

¥

1,622,500
2,988
1,625,488¥
94,70813,478,825

¥

¥

Total

6,681
－
6,681
(1,021)
22,636¥ 1,629,182
2,988
1,632,170¥
93,687
13,501,462

7,847
166,953
1,604

2,457
1,372
－

2,489
31,926
8,643

12,794200,252
10,248631
2507

13,425200,255
10,755(1,748)－－(1,748)－(1,748)

10,969－－10,969－10,969

9,496

¥

5,790

¥

3,977

¥

19,264

¥

1,141

¥

20,406

For the year ended March 31, 2020
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Increase in tangible fixed assets
and intangible fixed assets¥ 1,602,154
2,601
1,604,756¥
94,382
11,796,918

¥

¥

¥

121,727
1
121,728
8,072
234,884

Bankingbusiness

Total¥

49,997275
50,272¥
10,6903,096,574

Other

¥

1,773,879
2,877
1,776,757¥
113,145
15,128,377

¥

¥

Total

7,541
－
7,541
(1,441)
25,188¥ 1,781,420
2,877
1,784,298¥
111,704
15,153,565

9,174
181,812
5,064

2,476
1,337
－

2,765
33,9509,270

14,416217,100
14,334726
3705

15,142
217,103
15,040

(11)

－

－

(11)

－

(11)

17,216

¥

7,143

¥

- 17 -

2,715¥

27,075

¥

4,652

¥

31,727

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Millions of yen
For the year ended
March 31, 2019
Totals of reportable segments¥

For the year ended
March 31, 2020
1,625,488
6,681

Other

¥

1,776,757
7,541(2,988)Adjustments for intersegment transactions¥

Ordinary revenues in statement of income(2,877)

1,629,182¥

1,781,420

Millions of yen
For the year ended
March 31, 2019
Totals of reportable segments¥

For the year ended
March 31, 2020
94,708(1,021)

Other¥

113,145(1,441)

169

Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated¥

statement of income

176

93,856¥

111,880

Millions of yen
For the year ended
March 31, 2019

For the year ended
March 31, 2020¥¥

Totals of reportable segments

13,478,825
22,636

Other
Adjustments for intersegment transactions

15,128,377
25,188(66,653)
33,406

Amount not allocated to reportable segments¥

Assets in balance sheets(72,023)
44,16813,468,215¥

15,125,710

Millions of yen
For the year ended
March 31, 2019
Total
Depreciation
Interest income anddividends
Interest expenses
Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andOther

For the year ended
March 31, 2020

Adjustments
¥

Total

Other

¥ 12,794 ¥

631

200,2522(0)200,255

217,100

10,248507(77)

10,678(1,748)－－

10,969－－¥ 19,264 ¥

1,141

¥

40

Consolidated
financialstatements

69¥ 13,466 ¥ 14,416 ¥- 18 -

726¥ 15,1913(0)

217,103

14,334705(75)

14,964(1,748)

(11)

－

－

(11)

10,969

－

－

－

－

94

¥ 31,822

4,652¥

Consolidated
financialstatements

49¥ 20,475 ¥ 27,075 ¥intangible fixed assets

Adjustments¥

3) Per share data
Yen
For the year ended
March 31, 2019

For the year ended
March 31, 2020

Net assets per share

1,505.20

1,584.90

Earnings per share

142.69171.09Earnings per share（diluted）

142.67171.04(Notes)1. Net assets per share is calculated based on the followings:
Millions of yen, except number of shares
For the year ended
March 31, 2019
Net assets

For the year ended
March 31, 2020

656,846

691,978

2,045

2,465

Stock acquisition rights

1,896

2,250

Non-controlling interests

149

215

654,800

689,512435,025

435,049

Amount excluded from Net assets

Net assets attributable to common stock at the fiscal year-end
Number of common stock at the fiscal year-end used for the
calculation of Net assets per share (in thousands)

2. Earnings per share and earnings per share (diluted) are calculated based on the followings:
Millions of yen, except number of shares
For the year ended
March 31, 2019

For the year ended
March 31, 2020

Earnings per share
Profit attributable to owners of parents
Amount not attributable to common stockholders
Profit attributable to owners of parents attributable to common
stock
Average number of common stock during the fiscal year
(in thousands)

62,07474,429－－62,07474,429435,016

435,041

－

－

87

115

87

115

Earnings per share(diluted)
Adjustment for profit attributable to owners of parents
Increase in number of common stock (in thousands)
Stock acquisition rights (in thousands)
Outline of dilutive shares which were not included in the calculationof“Earnings per share (diluted)” because they do not have dilutive
effect:- 19 -－

4) Subsequent Events（Sony’s tender offer for SFH’s shares etc.）
Sony Financial Holdings Inc. (the “Company”) made a resolution at the meeting of its Board of Directors held on May 19,
2020 to express its opinion in support of the tender offer for the Company’s common shares (the “Company’s Common
Shares”) and the Stock Acquisition Rights to be conducted by Sony Corporation (the “Tender Offeror”), the controllingshareholder (parent company) of the Company (the “Tender Offer”), and to recommend that the shareholders and the holdersof the Stock Acquisition Rights of the Company accept the tender offer.
The resolution of the Board of Directors stated above was made on the assumption that the Tender Offeror intends to make theCompany its wholly-owned subsidiary through the Tender Offer and a series of subsequent procedures and that the Company’s
Common Shares will be delisted.
For further details, please refer to “Announcement of Opinion in Support of Tender Offer for Shares, Etc. in Sony Financial
Holdings Inc. by Sony Corporation, the Controlling Shareholder, and Recommendation to Tender Shares, Etc.” announced on
May 19, 2020.

- 20 -

SFH’s consolidated results are prepared in accordance with Japanese GAAP. As such, these figures differ in significant respects
from the financial information reported by Sony Corporation, SFH’s parent company, which prepares its financial statements inaccordance with U.S. GAAP.
SFH’s scope of consolidation includes following companies
Consolidated subsidiaries:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Life With Insurance Co.,Ltd.*²
SA Reinsurance Ltd.*²
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
SmartLink Network Europe B.V.*¹
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.
Sony Financial Ventures Inc.*¹
SFV・GB L.P.*¹*1 Sony Financial Ventures Inc. was included in the scope of consolidation from the second quarter ended September 30, 2018,
SFV・GB L.P. was included in the scope of consolidation from the fourth quarter ended March 31, 2019, SmartLink Network
Europe B.V. was included in the scope of consolidation from the second quarter ended September 30, 2019, and Sony Life With
Insurance Co.,Ltd. and SA Reinsurance Ltd. are included in the scope of consolidation from the fourth quarter ended March 31,
2020, respectively.
*2 Sony Life acquired shares of AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., making the two companies into
wholly owned subsidiaries of SFH and Sony Life on January 29, 2020.
Furthermore, AEGON Sony Life Insurance Co., Ltd changed its trade name to “Sony Life With Insurance Co.,Ltd.,” as of April
1, 2020.

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

- 21 -

V. Attachment
Content of Presentation Material
Consolidated Financial Results for the Fiscal Year Ended March 31, 2020 andSony Life’s Preliminary MCEV as of March 31, 2020
・ Consolidated Operating Results for the Fiscal Year Ended March 31, 2020 (FY2019) …………………....

3

・ Forecast of Consolidated Financial Results and Dividend for the Fiscal Year Ending March 31, 2021
(FY2020)……………………………………………………………………………………………………….

18

・ Sony Life’s Preliminary MCEV as of March 31, 2020……………………………………………………...

20

・ Our Perspective on Consolidated Group ESR………………………………………………………………

23

・ Sony’s Tender Offer for SFH’s Shares Etc. ………………………………………………………………

25

・ Appendix …………………………………………………………………………………………………….

29- 22 -

【Presentation Material】

Consolidated Financial Results
for the Fiscal Year
Ended March 31, 2020
andSony Lifeʼs Preliminary MCEV
as of March 31, 2020

Sony Financial Holdings Inc.
May 19, 2020

AGENDA
Consolidated Operating Results for the Fiscal Year Ended March 31, 2020 <FY2019>

P. 3

Forecast of Consolidated Financial Results and Dividends
for the Fiscal Year Ending March 31, 2021 <FY2020>

P. 18

Sony Lifeʼs Preliminary MCEV as of March 31, 2020

P. 20

Our Perspective on Consolidated Group ESR

P. 23

Sonyʼs Tender Offer for SFHʼs Shares Etc.

P. 25

Appendix

P. 29

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking
statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,”“predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forwardlooking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking
statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group
companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, andactual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors
are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise
forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained inthis 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 to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever in Japan or abroad.
(Note 1) Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have beenrounded. Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
(Note 2) “Lifeplanner” is a registered trademark of Sony Life.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Fiscal Year Ended
March 31, 2020
<FY2019>

Management Message
 On a consolidated Group basis, both ordinary revenues and ordinary profit
increased year on year, owing to increases in ordinary revenues and ordinary profit
from all the businesses: life insurance, non-life insurance and banking businesses.
 Sony Lifeʼs new policy amount for FY2019 decreased year on year due to lower
sales of family income insurance, however new business value for FY19.4Q (3M)
increased from FY19.3Q (3M), due mainly to favorable sales of insurance products
for corporate customers.
 Our forecast for the consolidated financial results for FY2020 is undetermined sincea rational calculation is problematic at present due to the numerous uncertainties
regarding the COVID-19 pandemic. However, we will strive to enhance ourcorporate value through further expansion of our customer base by the enhanced
utilization of technologies and the establishment of a cooperative structure withSony Group.
 SFH decided to express its support to Sonyʼs tender offer, and recommends thatshareholders tender as SFH anticipates synergies will be created as a result of
becoming a wholly-owned subsidiary of Sony, which will lead to growth in corporate
value, as well as contribute to interests of shareholders.

Copyright © Sony Financial Holdings Inc. All rights reserved.

4

Highlights of Consolidated Operating Performance◆ Ordinary Revenues︓Increased 9.3% year on year, to ¥1,781.4 billion, owing to increases
in ordinary revenues from all the businesses: life insurance, non-life insurance and banking
businesses.
◆ Ordinary Profit︓Increased 19.2% year on year, to ¥111.8 billion, owing to increases in ordinary
profit from all the businesses mentioned above.
Ordinary Revenues
1,629.1+9.3%

Ordinary Profit

1,781.4＋19.2%

93.8

111.8

(JPY bn)(JPY bn)

FY2018FY2018FY2019FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓ Increased 7.9% year on year, to ¥1,580.1 billion, due primarily to higher
insurance premium revenue, mainly from single premium insurance.
◆ Ordinary Profit︓ Increased 11.2% year on year, to ¥88.7 billion, due chiefly to a decreasein costs related to the acquisition of new policies and a rise in profit in tandem with expansionof the policy amount in force, which more than offset higher operating expenses.

Ordinary Revenues
1,464.2+7.9%

Ordinary Profit

1,580.1(JPY bn)

79.8+11.2%

88.7(JPY bn)

FY2018FY2019FY2018FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

6

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓Decreased due to lower sales of family income insurance.
◆ Annualized Premiums from New Policies︓Decreased due to lower sales of term life insurance
for corporate customers despite a favorable sales of U.S. dollar-denominated insurance.
Number and Amount of New Policies

Annualized Premiums from New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）

New policy amount
Number of new policies (Thousands of policies)

Annualized premiums from new policies
Of which, third-sector

609
540

+4.5%

6.15

636

87.9
(6.6％)

73.0

5.39

5.28

82.1

(12.2%)(JPY bn)(JPY tn)

FY2017FY2018FY201912.9

15.2

FY2017FY2018(15.4%)

12.9
FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

7

Operating Performance : Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force
Number of policies in force (Millions of policies)

7.56
47.2

7.84

+4.0%

Annualized Premiums from Insurance in Force（Individual life insurance + Individual annuities）
Annualized premiums from insurance in force
Of which, third-sector

8.16
848.8

+3.8%

51.4

49.5

922.7

889.3

+3.8%

(JPY tn)

191.8

197.5

Mar. 18

Mar. 19

+1.9%

201.3

(JPY bn)

Mar. 18

Mar. 19

Mar. 20

Mar. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Operating Performance : Sony Life (Non-consolidated) (3)◆ Lapse and Surrender Rate︓
Down due to a decrease in cancellation of policies, with certain customers cancelling existing
policies and taking out new family income insurance and other policies, as premiums wererevised in line with revision to the standard mortality tables in February 2018.
Lapse and Surrender Rate*（Individual life insurance + Individual annuities）

6.06
4.97

(1.6pt)4.46（%）

FY2017FY2018FY2019*The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy
amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.
Copyright © Sony Financial Holdings Inc. All rights reserved.

9

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓Remained almost flat due to an increase in provision of policy reserve forminimum guarantees for variable life insurance despite a profit rose in tandem withexpansion of the policy amount in force.
ReferenceCore Profit and Adjusted Core Profit
Core profit

Investment yield for core profit
Average assumed interest rate

Adjusted core profit+3.8%

81.3 82.4

97.2 97.4

Average Assumed Interest Rate andInvestment Yield for Core Profit

101.1
96.1

(1.1%)

2.22

2.19

2.17

1.97

1.94

1.93

FY2017FY2018FY2019(JPY bn)（%）

FY2017◆ Details of core profit(JPY bn)
Positive spread
Provision of policy reserve forminimum guarantees forvariable life insurance *1
Adjusted core profit *2

FY2018FY2019FY2017FY2018FY2019

17.7

18.2

19.3

(18.7)(18.3)(24.2)

82.4

97.4

101.1

*1 Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
*2 Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves
for minimum guarantees for variable life insurance)
Copyright © Sony Financial Holdings Inc. All rights reserved.

10

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓Increased due to an increase in gains (losses) on hedges of variable life
insurance in addition to a factor in core profit.
◆ Difference from core profit

Core Profit and Ordinary Profit
Core profit

Ordinary profit

97.2

81.3

(JPY bn)(1.1%)

96.1

79.8

88.7

+11.2%

56.3

FY2017FY2018FY2019Core profit

81.3

97.2

96.1

Capital gains (losses)*1

(9.0)

1.6

(1.9)

Gains (losses) on hedges ofvariable life insurance*2

(8.4)

(9.9)

3.6

Provision of contingency reserve*3

(7.4)

(8.6)

(9.0)

Others

(0.1)

(0.4)

(0.1)

Ordinary profit

56.3

79.8

88.7

*1 Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
*2 Gains (losses) on hedges of variable life insurance offset the impact of market
fluctuations on provision of policy reserves for minimum guarantees for variable
life insurance on page 10.
*3 Provision of contingency reserve is described as negative amount.

(Note) Regarding hedges of variable life insurance(JPY bn)

FY2017FY2018FY2019Market fluctuations resulted in the following accounting gains (losses), due todifferences between Japanese GAAP and economic value-based valuation.
Please refer to page 40 for details.

(JPY bn)
Gains (losses) of variable life insurance
related to market fluctuations

FY2017FY2018(0.2)

FY2019

(0.5)

(2.0)

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Sony Life : Number of Lifeplanner Sales Employees
Number of Lifeplanner Sales Employees
（18）

5,142

5,135

5,147

5,106

5,164

5,116

5,119

5,074

5,146

＋72

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Jun. 19

Sep. 19

Dec. 19

Mar. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

12

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues : Increased 5.8% year on year, to ¥121.7 billion, due mainly to anincrease in net premiums written for mainstay automobile insurance.
◆ Ordinary Profit : Increased 17.0% year on year, to ¥8.0 billion, due mainly to a reversal ofa portion of reserves for some products that made provisions in FY2018 and in addition thatreversal of catastrophe reserves were recorded in FY2019.
Ordinary Profit

Ordinary Revenues

115.1

＋5.8%

121.7
8.0

＋17.0%

6.8(JPY bn)(JPY bn)

FY2018FY2018FY2019FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

13

Operating Performance : Sony Assurance (1)◆ Net Premium Written︓Increased due to stable sales of mainstay automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others108.2

Personal accident insurance

Ordinary profit

＋5.5%

6.5

11.2

10.5

10.0

119.3

113.1

Adjusted ordinary profit
＋6.9%

8.0

6.8

＋17.0%xx(JPY bn)

FY2017FY2018FY2019*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)

FY2017FY2018FY2019(Note) Most of personal accident insurance is medical insurance.

（Reference) Provision for catastrophe reserve（JPY bn）

FY2017FY2018FY2019Provision for catastrophe reserve

3.4

3.6

3.2

(Note) Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓
Almost flat due to a rise in E.I. loss ratio despite a decrease in net expense ratio.
Combines Ratio

Sum of Two Ratios（Net Loss ratio＋ Net Expense Ratio）（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

Net expense ratio

89.2

89.1

Net loss ratio

89.3

Net expense ratio

85.1

84.4

+0.2pt

61.3

60.7

（%）

28.5

27.8

FY2017FY2018＋0.4pt(0.2pt)85.7＋0.6pt

61.7

55.9

57.3

＋0.8pt58.1(0.2pt)27.6

FY2019

（%）

28.5

27.8

27.6

FY2017FY2018FY2019(Note)(Note)
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
Net loss ratio = (Net losses paid + Loss adjustment expenses) / Net premiums written
and claims+ Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded.] Net expense ratio = Expenses related to underwriting / Net premiums written
Copyright © Sony Financial Holdings Inc. All rights reserved.

15

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓
Ordinary revenues expanded 9.2% year on year, to ¥50.2 billion, and ordinary profit was up
11.4% year on year, to ¥10.6 billion, due to increases in such income as interest on loans
in line with a growing number of newly executed mortgage loans.
Ordinary Profit

Ordinary Revenues

46.0

＋9.2%

50.2
9.5

(JPY bn)＋11.4%

10.6(JPY bn)

FY2018FY2019FY2018FY2019Copyright © Sony Financial Holdings Inc. All rights reserved.

16

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓Increased due mainly to an increase in newly accumulated funds via the increased
number of accounts.
・Foreign Currency Deposits︓ Increased due mainly to an increase in time deposit.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Loans Outstanding

Customer Assets
Yen deposits
Foreign currency deposit
Number of accounts (Millions of accounts)

30,00025,0001.35
2,343.0
123.7

20,000

404.6

+0.02

1.47

419.6

110.4

+109.0453.2

Others1,979.1140

1,596.3

120

1,744.1
53.7

1,939.3

2,028.6

5,000(JPY bn)020Mar. 19

Mar. 20

1,525.5

60
40

Mar. 18

Corporate loans:¥26.8 billion,
Card loans :¥17.3 billion.

+235.070.7

801,814.7

44.2*

100

15,00010,000Mortgage loans

1.50

2,592.3

2,483.3
124.3

Investment trusts

1,690.3

1,934.8(JPY bn)

Mar. 18

Mar. 19

Mar. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

17

Forecast of Consolidated Financial Resultsand Dividends for the Fiscal Year Ending
March 31, 2021 <FY2020>

Forecast of Consolidated Financial Results and Dividends for FY2020
 Dividends for FY2019
Dividends for FY2019 are expected to be ¥70.0 per share, an increase of ¥7.5 from the dividends of
FY2018.
 Forecast of Consolidated Financial Results for the FY2020
Due to the numerous uncertainties about how the COVID-19 pandemic will affect our operating
performance, calculating a financial forecast rationally is problematic at present, since it is currently
difficult to predict when the COVID-19 pandemic to get settled and the pace of the recovery of businessactivities and others. Accordingly, our consolidated financial forecast and dividend forecast for FY2020
are undetermined.
 Forecast of Dividends for the FY2020
As described in the “Announcement of Opinion in Support of Tender Offer for Shares, Etc. in SonyFinancial Holdings Inc. by Sony Corporation, the Controlling Shareholder, and Recommendation to
Tender Shares, Etc.” announced on May 19, 2020, SFH made a resolution at the meeting of its board of
directors held today, decided not to pay a dividend for the FY2020, subject to the successful completionof the Tender Offer.
 In response to the growing COVID-19 pandemic
SFH and its Group companies in principle refrain from conducting business face to face, out ofconsideration for the health and safety of our customers, business partners and employees. We havealso introduced teleworking and other measures to help curtail infection.
<Initiative at Sony Life>
Going forward, Sony Life plans to gradually resume face-to-face sales activities, by taking into
consideration of the relaxation of restricted movement request and pace of the resumption of economic
activities. In addition, Sony Life plans to enhance its response to the situation, by gradually increasing its
use of telephone- and video-based consulting tools.
19
Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Lifeʼs Preliminary MCEV
as of March 31, 2020
Please keep in mind that the validity of these calculations has not been verified by outside specialists as of March 31, 2020.
The calculation of MCEV as of March 31, 2020, in accordance with the MCEV principles and verified by outside specialists,
is scheduled to be announced on June 9, 2020.
A part of the calculations of MCEV adopted simplified method for that as of December 31, 2019.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of March 31, 2020 increased ¥20.5 billion from December 31, 2019, due mainly to an
acquisition of new policies◆ New Business Value / New Business Margin
・New business value for FY19.4Q (3M) increased ¥17.8 billion from FY19.3Q (3M), due mainly tofavorable sales of insurance products for corporate customers.
・New business margin for FY19.4Q (3M) was down 1.2pt from FY19.3Q (3M), due mainly to a decline
in U.S. dollar interest rates.
ChangefromMar. 19

ChangefromDec. 19

Mar. 19

Dec. 19

Mar. 20

1,720.2

1,692.9

1,713.5

(6.7)

+20.5

Adjusted net worth

2,195.7

2,372.2

2,565.8+370.0+193.5

Value of existing business(475.5)(679.3)(862.3)(376.8)(172.9)FY18.4Q(3M)

FY19.1Q(3M)

FY19.2Q(3M)（JPY bn）

MCEV（JPY bn）

FY19.3Q(3M)

FY19.4Q(3M)

FY2019(12M)

New business value

23.1

17.0

14.8

17.1

17.8

66.9

New business margin

5.0%

5.4%

3.8％

5.1%

3.9%

4.5%

Note: Calculated MCEV as of December 31, 2019 onward by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2019.
*Please refer to page 46-49 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

21

Sony Lifeʼs MCEV: Breakdown of MCEV for FY2019 (12M)

Adjusted Profit
+82.6
+66.9
1,720.2

New business
value

MCEV
as of Mar. 19

Dividend
payments toshareholder(JPY bn)

MCEV
as of Mar. 19(after dividends paid)(57.2)

1,713.5
Assumptionchanges

1,688.0

Expected existing
business contribution(32.2)+15.7

MCEV
as of Mar. 20

Note: Details on assumption changes : Insurance-related assumption changes:+¥8.5 billion,
economic variances changes (included interest rate fluctuation): ¥(65.8) billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

22

Consolidated Group ESR

Our Perspective on Consolidated Group ESR
 Consolidated Group ESR︓

Consolidated Group ESR is an indicator of capital sufficiency with respect to the Groupʼs risk
amount. Currently the target level of consolidated Group ESR is between 180% and 250% fromthe viewpoint of ERM to ensure financial soundness and capital efficiency.
Invest in growth, take on additional risk
and expand shareholder returns

(%)

250
 Consider investing in growth, taking on
additional risk and adopting a flexible
response to shareholder returns

Comfortablezone

Consolidated Group ESR
Approx. 220%

180


Recover capital levels by reducing risk
and retaining profitConsider shoring up capital, review
shareholder returns

100(Note 1) We use consolidated Group ESR (an internal management indicator) to assist in making comprehensive management decisions. The indicator refers to thecalculation methods used for European Solvency II and ICS, with some simplification. No third-party verification is conducted with respect to the calculation
process or the appropriateness of its results.
(Note 2) Please refer to page 44 for Sony Lifeʼs ESR.
Copyright © Sony Financial Holdings Inc. All rights reserved.

24Sonyʼs Tender Offer for
SFHʼs Shares Etc.

Sonyʼs Tender Offer for SFHʼs Shares Etc.
Sony, the controlling shareholder of Sony Financial Holdings (“SFH”), announced on May 19 thetender offer for SFH shares etc.
 Tender offer price︓2,600 yen per common share, and 259,900 yen per stock acquisition right Premium on the closing price of the SFHʼs share︓
The immediately preceding business day︓

25.97%The simple average closing price for the one-month period︓

31.58%The simple average closing price for the three-month period ︓

34.09%The simple average closing price for the six-month period ︓

14.94%

 Tender offer period︓Wednesday, May 20, 2020 〜 Monday, July 13, 2020

39 business days

 Minimum threshold of purchase︓2/3 of total voting rights (following dilution) (7,070,000 shares)
Maximum threshold︓N/A
 SFH anticipates synergies will be created as a result of becoming a wholly-owned subsidiary of Sony,which will lead to growth in corporate value, as well as contribute to interests of shareholders. For
these reasons, SFH decided to express its support to the tender offer, and recommends thatshareholders tender.
 Announcement of Opinion in Support of Tender Offer for Shares, Etc. in Sony Financial Holdings Inc. by Sony Corporation, the Controlling
Shareholder, and Recommendation to Tender Shares, Etc.
https://www.sonyfh.co.jp/en/news/article/200519_01.pdf
Copyright © Sony Financial Holdings Inc. All rights reserved.

26

Reasons for Expressing Support to This Tender Offer andRecommending That Shareholders Tender
The decision was made after discussing and examining the appropriateness of theterms and conditions (including the tender offer price) of the transaction, as well as
strategic rationales of the transaction, anticipated synergies, etc. as described below:
 In order to achieve sustainable growth, it is necessary to achieve organic growth of theexisting businesses and create new highly-value added financial services.
 Under the current conditions of the falling birthrate and aging population, changes in
economic structure, and technologies symbolized by fintech, a deep involvement andcontribution based on the experience of the Sony Group as a global technology
company can be expected.
 By becoming a wholly-owned subsidiary of Sony, SFH will be able to implement bold
management measures including further integration and reorganization of the service
development system and corporate functions across both company groups in a promptand flexible manner, as well as promptly develop financial services in response tochanging business environment and diversified customer needs.
 Leverage Sonyʼs R&D functions, artificial intelligence (AI) technologies and brandpower more than ever, to promote and accelerate the development of new products
and new services.
 By sharing part of the functions with Sony Group, SFH is expected to reduce marketingcosts and corporate costs.
Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Regarding the Measures to Ensure the Fairness of the Tender OfferThis decision was made following careful discussion and evaluation of the rationale of the transaction,
the appropriateness of the transaction terms and conditions, as well as the fairness of the procedures,
following the implementation of the below measures to ensure fairness, including the establishment ofa special committee consisting of independent outside directors, from the viewpoint of securing theinterests of the general shareholders of SFH, and based on the “Fair M&A Guidelines” by the Ministry of
Economy, Trade and Industry (METI).
The unanimous opinion that this transaction is not disadvantageous to the minority shareholders of
SFH was obtained in the Special Committee held today.
Measures to ensure fairness

1 Establishment of an Independent Special Committee at SFH, and the substantial involvement of the Special Committee
to the negotiations
2 Procurement by the Special Committee of advice from an Independent Legal Advisor
3 Procurement by the Special Committee of the Valuation Report (on the valuation of SFHʼs common shares)
and the Fairness Opinion from an Independent Financial Advisor and Third-Party Valuation Institution
4 Procurement by SFH of an opinion from an independent legal advisor
5 Procurement by SFH of an Valuation Report (on the valuation of SFHʼs common shares) and Fairness Opinion from an
independent financial advisor and a third-party valuation institution
6 Establishment of an Independent Evaluation Framework at SFH
7 Unanimous approval of all non-interested directors and opinion of all non-interested statutory auditors that they had noobjection at SFH
8 No transaction protection clause
9 Measures to Ensure an opportunity for SFHʼs Shareholders and the holders of the Stock Acquisition Rights toappropriately decide whether to tender their Companyʼs Common Shares and the Stock Acquisition Rights in the Tender
Offer (such as setting a relatively long tender offer period of 39 business days, etc.)

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Operating Performance : AEGON Sony Life Insurance
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)

Appendix◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony Bank

Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital◆ Adjusted capital◆ Adjusted profit
Sony Financial Group（consolidated）（JPY bn）
Consolidated adjusted profit
Sony Life(non-consolidated)（JPY bn）

FY2018Sony Financial Group（consolidated）

FY2019120.4

FY201897.9（JPY bn）

New business value *

91.3

66.9

①MCEV as of the beginning of
the fiscal year

Expected existing business
contribution *

15.0

15.7

②Dividends paid

Adjusted profit

106.4

82.6

Sony Assurance（JPY bn）

FY2018FY2019Net income

4.9

5.8

Provision amount forcatastrophe reserve (after tax)

2.6

2.3

Provision amount for reservefor price fluctuations (after tax)

0.0

0.0

Adjusted profit

7.6

8.1

Sony Bank(consolidated)（JPY bn）

Profit attributable to ownersof the parent

FY2018FY20196.3

FY20191,801.8
FY2018

1,846.4
FY20191,633.1

1,720.2

26.2

32.2

③MCEV as of the end of theperiod *1,720.2

1,713.5

Adjusted capital（①－②＋③）/２

1,663.5

1,700.8

Sony Assurance（JPY bn）

FY2018FY2019①Net assets

34.7

37.7

②Catastrophe reserve

17.7

20.0

③Reserve for price fluctuations

0.1

0.1

Adjusted capital（The averageamount of ①＋②＋③）

50.5

55.3

Sony Bank(consolidated)

7.0

FY2018

Consolidated adjusted profit
Sony Life(non-consolidated)

FY2019（JPY bn）（JPY bn）

FY2018Adjusted capital（The averageamount of net assets during
the period）

87.6

FY201990.2* Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY2019.
Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Detail of Consolidated Adjusted ROE

FY2018(12M)

FY2019(12M)

Consolidated Adjusted ROE

6.7%

5.3%

(Sony Life) Core ROEV

6.4%

4.9%

(Sony Assurance) Adjusted ROE

15.2％

14.7%

(Sony Bank) ROE

7.3%

7.8%

Copyright © Sony Financial Holdings Inc. All rights reserved.

31

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

Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

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

Net income (loss) + Provision
amount for catastrophe
reserve and its provision ②
amount for reserve for pricefluctuations during the fiscal
year, in each case after taxes＋

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

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

＋

＋

①

④

＋

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

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

Copyright © Sony Financial Holdings Inc. All rights reserved.

32

Update of Major KPIs

Sony Life
Policy Amount in Force *1

47.2

49.5

51.4

（JPY tn）
Mar. 18

Sony Assurance
Direct Premiums Written

107.0

112.1

Sony Bank

Retail Balance*2

119.1
3.9

（JPY bn）
Mar. 19

Mar. 20

4.2

4.5（JPY tn）
FY2017FY2018Mar. 18

FY2019Mar. 19

Mar. 20*1 Individual Life Insurance + Individual Annuities*2 Sum of deposits, investment trusts, financial products intermediary services, mediated discretionary investment contracts and personal loans

Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Financial Soundness

Mar. 19
Sony Life (non-consolidated)
Solvency margin ratio

Change from
Mar. 19

Mar. 20

2,590.5%

2,476.3%(114.2pt)

Sony Assurance
Solvency margin ratio

813.0%

872.3％+59.3pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

9.58％

8.85％

(0.73pt)（%）

Sony Bank (non-consolidated）
Non-performing assets ratio（based on Financial Reconstruction Law）*

Mar. 190.12%

Change from
Mar. 19

Mar. 200.10%(0.02pt)*Non-performing loans (loans based on the Financial Reconstruction Act) /Total loan exposure(Note) Ratios less than the indicated unit have been truncated.

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 10% of the amount of new mortgage loans for FY2019
Sony Life accounts for 17% of the balance of mortgage loans as of March 31, 2020
※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 6% of new automobile policies for FY2019※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)

FY2018 (12M)¥87.9 billion

FY2019（12M）¥82.1 billion

Yen whole
life 3%

Savings typeproducts
27%

U.S. dollardenominatedwhole life
13%
U.S. dollar-denominatedsingle-premium whole
life insurance 7%

Protection-type（term-life）
50％(Note) Savings type products : Endowment, annuities, and educational endowment insurances

Savings typeproducts
40%

U.S. dollardenominatedwhole life
16%
U.S. dollar-denominatedsingle-premium whole
life insurance 15%

Protection-type（term-life）
26％

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)

FY2019（12M）

FY2018 (12M)

Japanesestocks0.1%

Japanesestocks0.2%

JGBs

Foreign bonds
23.5%

39.5%
Foreign bonds

Japanese corporate
bonds
12.7%

50.5%

JGBs
63.6%

社債
25.9%Japanese corporate bonds
9.9%(Note 1) Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
(Note 2) The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)
Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Sony Lifeʼs General Account Assets (Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 19

Mar. 20

Amount%Amount%Japanese bonds(including JGBs)

7,745.3

85.3%

8,364.5

84.4%

Japanese stocks

28.6

0.3%

28.0

0.3%

Foreign bonds

542.1

6.0%

966.9

9.8%

Foreign stocks

22.5

0.2%

28.6

0.3%

Money held in trust

269.3

3.0%

0.0

0.0%

Policy loans

198.3

2.2%

208.0

2.1%

Real estate*

90.8

1.0%

92.5

0.9%

Cash and call loans

61.9

0.7%

79.8

0.8%

Others

120.2

1.3%

146.2

1.5%

Total

9,079.4

100.0%

9,914.9

100.0%（JPY bn）◆ Yen Bond duration
Mar. 18 : 21.4 years
Mar. 19 : 21.8 years
Mar. 20 : 21.8 years◆ The holding ratio on the real status
of Japanese bonds including thoseinvested in money held in trust in thegeneral account :Mar. 18 : 89.5%
Mar. 19 : 88.3%
Mar. 20 : 84.4%(Note) Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Sony Lifeʼs Interest Income and Dividends (Details)

FY2018(JPY mn)

FY2019Change00＋91.4%

Japanese bonds(including JGBs)

129,930

133,450＋2.7%

Japanese stocks

556

319

(42.6%)

Foreign securities

19,90630,660＋54.0%

340

270(20.4%)

Loans

6,828

7,049

＋3.2%

Real estate

8,831

9,710

＋9.9%

543

350

(35.4%)

166,937

181,811＋8.9%

Cash and deposits

Other securities

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Sony Lifeʼs Capital Gains (Losses)（JPY mn）

FY2018FY20192,784.7

1,274.5

Capital losses（JPY mn）
Capital gains

Losses on trading securities, net

14.4

－

Gains on trading securities, net

Losses on sale of securities…(3)

3.4

5.0

Gains on sale of securities…(3)

402.6

631.6

1,392.5－

Losses on valuation of securities…(4)Losses on derivatives, net
Losses on hedges of variable life
insurance…(1)

998.3

－

Losses on hedges of available-for-salesecurities…(2)(24.6)－

Losses on U.S. dollar-denominatedinsurance (foreign exchange losses)…(5)

407.2

－

－

634.5

Losses on U.S. dollar-denominatedinsurance…(5)

－

657.1

Losses on hedges of variable life
insurance…(1)－(20.0)

971.6

3.2

971.6

－

Foreign exchange losses, net

Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy reserves
for foreign exchange fluctuations)…(5)◆ Capital Gains (Losses) on Main Items, Net Amounts（JPY mn）(1) Gains (losses）on hedges of variable life insurance

FY2018(998.3)(2) Gains (losses）on hedges of available-for-sale securities

24.6(3) Gains (losses) on sale of securities

607.2(4) Losses on valuation of securities(402.6)(5) Gains (losses) on U.S. dollar-denominated insurance(45.7)FY2018FY20191,956.2

1,450.7

－

14.9

610.7

363.7

－

409.8

Gains on hedges of variable life insurance…(1)

－

347.4

Gains on hedges of available-for-sale securities…(2)

－

63.6

The figures of gains (losses) on trading securities, net－(11.8)

Gains on U.S. dollar-denominated insurance (foreignexchange losses)…(5)－9.3

1,345.5－

1,333.1

－

－

662.2

－

662.2

(828.4)

176.2

Gains on derivatives, net

Foreign exchange gains, net
Gains on U.S. dollar- denominated insurance(foreign exchange gains)…(5)Other capital gains
Gains on U.S. dollar-denominated insurance（thereversal of policy reserves for foreign exchange
fluctuations)…(5)Net capital gains (losses)(Note 1) The figures of gains (losses) on trading securities, net, gains (losses) on derivatives
and foreign exchange gains (losses), net were recorded after offsetting gains andlosses of each item.
（Note 2）Sony Life increased its hedge ratio for variable life insurance and exchange fluctuation
risk related to U.S. dollar-denominated insurance from FY2019 with a greater
emphasis on suppressing capital fluctuations based on economic value, which are more
FY2019suitable for valuing the growth of the life insurance business. However, assessment of
the policy reserve and others differs between Japanese GAAP and economic valuebased valuation, which makes Japanese GAAP accounting profits more susceptible to367.4
market conditions.
・Please refer page 11 for the relationship between the (1) Gains (Losses）on hedges of
63.6
variable life insurance and fluctuation of liabilities, which are the hedged items.
・(5) Gains (losses) on U.S. dollar-denominated insurance under “Capital Gains (Losses)
358.6
on Main Items, Net Amounts” are the net amount after offsetting net gains (losses) onhedges exchange fluctuation risk related to U.S. dollar-denominated insurance and(631.6)fluctuation of liabilities which are the hedged items.

14.4

Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4
1,674.7
1,485.0 1,435.5
1,115.8 1,114.8

1,555.1

1,214.7

1,570.7
1,219.1

1,317.2 1,291.7（JPY bn）

0.0
FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q FY19.1Q FY19.2Q FY19.3Q FY19.4Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Sony Lifeʼs Quarterly Trend on Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9
24.9
19.5
16.1

（JPY bn）

3.1

21.1

16.2

2.8

3.3

3.6

18.7

3.3

19.2

18.9

3.9

3.8

21.1
18.5

17.5

4.0

3.1

3.1

3.1

3.5

FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q FY19.1Q FY19.2Q FY19.3Q FY19.4Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

22.6

21.9

23.6

17.1

23.1

17.1

17.0

17.8

14.8
12.2

（JPY bn）

FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q FY19.1Q FY19.2Q FY19.3Q FY19.4Q(Note) New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Sony Lifeʼs ESRThe risk amount based on economic value as of March 31, 2020 was ¥805.2 billion, up ¥45.1 billion from
December 31, 2019, resulting mainly from updating interest rate risk coefficients.
ESR as of March 31, 2020 was 216%, down 9pt from December 31, 2019 due mainly to an increase inrisk amount based on economic value.
（JPY bn）

Mar. 19

Dec. 19

Mar. 20

Change from
Mar. 19

Change from
Dec. 19

Insurance risk

547.3

587.6

607.6

+60.2

+20.0

Market-related risk

332.5

292.1

334.9

+2.3

+42.7

202.1

155.1

178.5

(23.5)+23.4

Operational risk

33.4

40.2

40.3

+6.9

+0.1

Counter party risk

3.0

4.0

3.8

+0.7

(0.1)

(174.0)(163.8)(181.5)(7.5)(17.7)

742.3

760.1

805.2

+62.8

+45.1

Change from
Mar. 19

Change from
Dec. 19

Of which, interest rate risk

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

MCEV + Frictional costs
ESR

Mar. 19

Dec. 19

Mar. 20

1,743.7

1,717.4

1,743.3

(0.4)

+25.9

235%

226%

216%

(18pt)(9pt)(Note 1) The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach,including insurance risk and market-related risk and others.
(Note 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.
(Note 3) Risk amount excluding the variance effect within market-related risk.
(Note 4) ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
(Note 5) The interest rate risk coefficient has been updated by taking into account of the deepening of negative interest rates in major countries.
Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Operating Performance : AEGON Sony Life Insurance◆Sony Life With Insuranceʼs new policy amount and policy amount in force

Number and Amount of New Policies*1

Number and Amount of Policies in Force*2

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

50.2
42.6

10.6

7.8

28.1

520.6

522.7

531.9

92.5

94.5

99.3

Mar. 18

Mar. 19

Mar. 20

5.4（JPY bn）（JPY bn）

FY2017FY2018FY2019*1 Amounts for FY2017 are individual annuities while amounts for FY2018
and FY2019 are total of individual insurance and individual annuities.

◆Net income (losses) for Sony Life With and SA Reinsurance（JPY bn）

Sony Life With Insurance
SA Reinsurance

FY2018*2 Amounts for as of Mar. 18 are individual annuities while amounts forMar. 19 and Mar. 20 are total of individual insurance and individual
annuities

ChangeFY2019

(3.9)

(1.2)

＋2.7

0.3

8.2

＋7.8

(Note) On Jan. 29, 2020, Sony Life With Insurance (former AEGON Sony Life Insurance) and SA Reinsurance converted into wholly owned subsidiaryʼs of SFH and Sony Life.
Furthermore, AEGON Sony Life Insurance changed its name to Sony Life With Insurance on Apr.1, 2020.
For FY2018, 50% of the net income (losses) was recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP.
Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Trend on JGB Yields (Par rate)
10 years
0.70%

20 years
30 years
40 years

0.50%

0.30%

0.10%

(0.10%)△0.10%△0.30%(0.30%)

Mar. 19 Apr. 19 May 19 Jun. 19 Jul. 19 Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20 Feb. 20 Mar. 20

Mar. 19

Apr. 19

May 19Jun. 19

Jul. 19

Aug. 19 Sep. 19

Oct. 19

Nov. 19 Dec. 19

Jan. 20

Feb. 20

Mar. 20

10 years (0.08%) (0.05%) (0.09%) (0.16%) (0.16%) (0.28%) (0.21%) (0.14%) (0.08%) (0.02%) (0.06%) (0.15%)

0.03%

20 years

0.34%

0.37%

0.30%

0.23%

0.20%

0.05%

0.20%

0.23%

0.26%

0.28%

0.23%

0.16%

0.31%

30 years

0.51%

0.56%

0.46%

0.36%

0.35%

0.15%

0.36%

0.39%

0.41%

0.41%

0.37%

0.29%

0.42%

40 years

0.58%

0.63%

0.50%

0.41%

0.40%

0.17%

0.43%

0.43%

0.45%

0.44%

0.40%

0.32%

0.44%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Trend on Risk-free Rate (Japanese yen/Par rate)

1.50%

Convergence
period: 20 year

Mar. 19
Dec. 19

1.30%

Mar. 20

1.10%
0.90%
0.70%
0.50%
0.30%
0.10%
(0.10%)

Last liquid point:
40 year(0.30%)
1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

47

Trend on U.S. Dollar Bonds Yields (Par rate)
10 years
20 years

2.90%

30 years

2.50%
2.10%
1.70%
1.30%
0.90%
0.50%
Mar. 19 Apr. 19 May 19 Jun. 19 Jul. 19 Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20 Feb. 20 Mar. 20
Mar. 19 Apr. 19

May 19Jun. 19

Jul. 19

Aug. 19 Sep. 19 Oct. 19 Nov. 19 Dec. 19 Jan. 20

Feb. 20 Mar. 20

10 years

2.41%

2.50%

2.13%

2.01%

2.02%

1.50%

1.67%

1.69%

1.78%

1.92%

1.51%

1.15%

0.67%

20 years

2.63%

2.74%

2.38%

2.31%

2.30%

1.77%

1.92%

1.99%

2.07%

2.25%

1.82%

1.47%

1.05%

30 years

2.82%

2.93%

2.57%

2.53%

2.53%

1.96%

2.11%

2.18%

2.21%

2.39%

2.00%

1.68%

1.32%

Copyright © Sony Financial Holdings Inc. All rights reserved.

48

Trend on Risk-free Rate (U.S. Dollar /Par rate)
3.55%

Convergence
period: 30 year

Mar. 19
Dec. 19

3.05%

Mar. 20

2.55%

2.05%

1.55%

1.05%

0.55%

0.05%

Last liquid point:
30 year1 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

49

Consolidated︓Summary Financial Statements
FY2018FY20191,464.3

1,604.7+140.3

+9.6%

78.2

94.3

+16.1

+20.7%

115.1

121.7

+6.6

+5.8%

6.8

8.0

+1.1

+17.0%

46.0

50.2

+4.2

+9.2%

Ordinary profit

9.5

10.6

+1.0

+11.4%

Ordinary revenues

3.6

4.6

＋0.９

+26.3%

(0.8)

(1.2)

(0.4)

ー

1,629.1

1,781.4＋152.2+9.3%

Ordinary profit

93.8

111.8

＋18.0

＋19.2%

Profit attributableto owners of theparent

62.0

74.4

+12.3

＋19.9％（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

Ordinary revenues
Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues

Ordinary profit
Ordinary revenues

Consolidated

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Sony Financial Ventures Inc. is included in the scope of consolidation from FY18.2Q, SFV・GB L.P. is included in the scope of
consolidation from the FY18.4Q, SmartLink Network Europe B.V. is included in the scope of consolidation from FY19.2Q, andSony Life With Insurance (former AEGON Sony Life Insurance) and SA Reinsurance are included in the scope of consolidationfrom FY19.4Q respectively.
(Note) Comprehensive income : FY2018: ¥ 57.4 billion, FY2019: ¥62.1 billion（JPY bn）

Consolidated

Net assets
Total assets

Mar. 19

Mar. 20

656.8

691.9

13,468.2

15,125.7

Change from Mar. 19
+35.1

+5.3%

+1,657.4+12.3%

Copyright © Sony Financial Holdings Inc. All rights reserved.

50

Sony Life︓Summary Financial Statements（Non-consolidated）（JPY bn）

FY2018

Ordinary revenues

FY20191,580.1+115.8+7.9%

1,136.1

1,330.8+194.7+17.1%

Investment income

278.9

193.7

(85.2)(30.6%)

Interest income
and dividends

166.9

181.8

+14.8

+8.9%

Foreign exchange
gains, net

13.4

ー

(13.4)(100.0%)Gains on separate
accounts, net

87.9

ー

(87.9)(100.0％)1,384.4

1,491.3＋106.9＋7.7%

Insurance claims andother payments

457.2

511.9

＋54.6

＋12.0%

Provision for policy
reserves and others

704.7

694.2

(10.5)(1.5%)

Investment expenses

Ordinary expenses

24.6

68.1

+43.4

+176.5%Losses on valuationof securities

4.0

6.3

+2.2

+56.9%

Losses onderivatives, net

13.9

ー

(13.9)(100.0%)Foreign exchange
losses, net

ー

6.3

+6.3

ー

Losses on separate
accounts, net

ー

45.9

+45.9

ー

146.9

156.4

+9.4

＋6.4%

Ordinary profit

79.8

88.7

+8.9

+11.2％Net income

49.6

56.7

＋7.1

+14.4%

Operating expenses

Mar. 19

Change from Mar. 19

9,523.8

10,629.9+1,106.0＋11.6%

Policy reserves

9,268.4

9,959.8＋691.4

＋7.5%

513.9

539.5

＋25.6

＋5.0%

122.7

123.8

+1.1

+0.9%

10,380.1

11,２37.1+856.9+8.3%

1,300.7

1,323.9

+23.2

＋1.8%

（JPY bn）

1,464.2

Income from insurance
premiums

Dec. 19

Securities

ChangeNet assets
Net unrealized
gains on othersecurities
Total assets
Separate account
Assets *（JPY bn）

FY2018

Gains from investment,net (General account)

FY2019166.3

Change

171.5

+5.2

+3.1%

*A portion of surplus investment funds are jointly invested,which amounted to ¥1.7 billion as of March 31, 2020.

51

Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)（JPY bn）
Ordinary revenues

FY2018FY2019

115.1

121.7

Direct Premiums Written *Medical insurance is included in personal accident.

Change＋6.6（JPY mn）

＋5.8%

Fire
MarineUnderwriting
income

113.1

119.7

＋6.5

＋5.8%

Investment
income

1.8

1.9

＋0.0

+4.2%

Voluntary automobile
Compulsory automobile liability

Personal accident

FY2018FY2019Change616

2,275+269.2%

－

－

ー

8,823

9,253

+4.9%

102,758

107,606

+4.7%

－

－

ー

112,198

119,135+6.2%

Ordinary expenses

108.2

113.6

＋5.4

＋5.0%

Underwriting
expenses

78.4

82.3

＋3.9

+5.0%

Operating, generaland administrative
expenses

29.7

31.2

＋1.5

+5.1%

6.8

8.0

Fire

265

1,284

＋384.6＋1.1＋17.0%

Marine

(0)

0

ー

5.0

6.1

+1.1

+22.1%

Personal accident

8,872

9,044

＋1.9%

4.9

5.8

+0.8

+16.2%

Ordinary profit
Underwriting
incomeNet income（JPY bn）

Mar. 19

Mar. 20

139.1

Change from
Mar. 19+11.3

Underwriting reserves

127.8

Net assets

34.7

37.7

＋2.9

Total assets

219.6

234.8

+15.2

Total

Net Premiums Written（JPY mn）

FY2018FY2019Change102,458

107,311+4.7%

Compulsory automobile liability

1,505

1,712

+13.8%

Total

113,101

119,352+5.5%

FY2018FY2019Voluntary automobile

Net losses paid

＋8.9%

（JPY mn）

Change

+8.6%

Fire

15

205

ー

+6.9%

Marine10(3)ーPersonal accident

3,009

3,249

+8.0%

Voluntary automobile

52,22355,518+6.3%

Compulsory automobile liability

1,350

1,346

(0.3%)

Total

56,60860,315+6.5%

Copyright © Sony Financial Holdings Inc. All rights reserved.

52

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated

FY2018（JPY bn）

FY2019ChangeOrdinary revenues

46.0

50.2

+4.2

+9.2%

Ordinary profit

9.5

10.6

＋1.0

+11.4%

Profit attributable toowners of the parent

6.3

7.0

＋0.7

＋11.4%◆ Non-consolidated
FY2018（JPY bn）

FY2019Ordinary revenues

41.7

45.3

＋3.6

+8.8%

Gross operating profit

24.5

27.1

＋2.5

＋10.6%

23.3

24.7

＋1.3

＋6.0%

Net interest income
Net fees andCommissions
Net other operating
income

(2.2)

0.9

＋1.2

－

3.4

3.3

(0.0)

(1.5%)

General andadministrative expenses

15.9

17.7

＋1.8

＋11.8%Net operating profit

8.5

9.3

+0.7

+9.0%

Ordinary profit

8.6

9.5

+0.8

+10.2%Net income

6.0

6.6

＋0,6

+10.2%（JPY bn）

Mar. 19

Net assets
Net unrealized gains
on other securities, netof taxes
Total assets◆ Balance of Securities by Credit Rating（Non-consolidated）

ChangeChange from
Mar. 19

Mar. 19

Mar 20

AAA

296.6

308.1

+11.4

+3.9%

AA

77.3

67.4

(9.9)

(12.8%)

A

288.0

277.3

(10.6)(3.7％)

BBB

24.4

28.9

＋4.5

＋18.8％

Others

10.0

21.4

＋11.4

+113.9%

Total

696.4

703.3

＋6.8

+1.0%

（JPY bn）

Change from
Mar. 19

Mar. 20

87.2

77.3

(9.9)

(11.4％)

3.9(10.2)(14.2)

ー

2,860.9

3,079.4＋218.5+7.6%

Copyright © Sony Financial Holdings Inc. All rights reserved.

53

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income in investment securities and onloans in line with a growing balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions.
（JPY bn）
Gross operating profit

FY2018FY2019Change

24.4

27.0

+2.5

+10.6%Net interest income*1 ①

25.5

26.4

+0.8

＋3.4％

Net fees andcommissions*2

(1.7)

(0.5)

+1.2

－

Net other operating
income*3

0.7

1.2

+0.5

+72.0%

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

23.7

25.8

+2.0

+8.8%

Operating expenses andother Expenses ③

15.9

17.8

+1.8

+11.5%Net operating profit(core profit) ＝(A)－③

7.8

8.0

+0.2

+3.1%

②

＜Reference＞
Yield on investment■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on financing

1.20
0.93

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

Interest Spread(Managerial Accounting Basis)
Interest spread

1.16(0.04pt)

0.89

0.27

0.28

FY2018FY2019（%）

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

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54

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Sony Financial Holdings Inc.
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