[Reference Disclosure] Key Performance Figures Based on U.S. GAAP (Complete Edition)
February 14, 2017
Sony Financial Holdings Inc.
Sony Corporation (“Sony”), the parent company of Sony Financial Holdings Inc. (“SFH”), prepares its consolidated
financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”). This reporting in accordance with U.S. GAAP includes the disclosure of financial information for the Sony
Group’s Financial Services segment, including the Sony Financial Group. On the other hand, the Sony Financial Group,
which accounts for the majority of the Sony Group’s Financial Services segment, discloses financial information inaccordance with accounting principles generally accepted in Japan (“Japanese GAAP”). SFH has received inquiries
from its shareholders and other investors about the differences between these two accounting standards.
In the insurance business, the differences between the two accounting standards are significant. These primarily derivefrom the differences of the accounting standards such as the liabilities for future insurance policy benefits and deferredinsurance acquisition costs. Therefore, we provide supplementary information for Japanese and overseas investors to
help their understanding of the Sony Financial Group’s operating performance. This document contains key financial
information pertaining to the Sony Group’s Financial Services segment that Sony disclosed in accordance with U.S.
GAAP.
Please note that the supplementary information has not been audited in accordance with the Companies Act, theFinancial Instruments and Exchange Act or the standard of the Public Company Accounting Oversight Board (UnitedStates). SFH prepares its consolidated financial results on the basis of Japanese GAAP, and we therefore ask ourshareholders and other investors to refer to figures based on Japanese GAAP.
Note: This release includes additional information from the previous release, [Reference Disclosure] Key Performance
Figures Based on U.S. GAAP, disclosed on February 2, 2017, which describes the differences between key
financial information for the Sony Group’s Financial Services segment under U.S. GAAP and the consolidated
operating performance issued by the Sony Financial Group under Japanese GAAP.

1(1) Performance Trends
Sony Group’s Financial Services Segment <U.S. GAAP><Fiscal year basis>(Billions of yen)
FY11

FY12

FY13

FY14

FY15

Revenue

868.7

1,002.4

993.8

1,083.6

1,073.1

Operating income

129.3

142.2

170.3

193.3

156.5

(Sony Life)

132.7

157.3

159.8

178.0

138.8

Net income

112.0

99.0

116.1

151.1

118.8

817.1

970.9

1,079.7

1,247.8

1,385.5

7,683.4

8,570.1

9,347.9

10,089.9

10,915.5

Stockholders’ equityof Financial Services*
Total assets<Quarterly basis>(Billions of yen)
FY15-1Q

FY15-2Q

FY15-3Q

FY15-4Q

FY16-1Q

FY16-2Q

FY16-3Q

Revenue

279.4

210.7

322.0

260.9

232.7

260.5

319.1

-

Operating income

46.0

41.2

52.2

17.2

48.5

33.6

29.0

-

(Sony Life)

40.9

34.7

51.6

11.6

41.5

31.0

31.0

-

Net income

32.1

29.0

36.7

21.1

35.1

23.6

20.6

-

1,253.3

1,279.0

1,325.7

1,385.5

1,426.0

1,414.9

1,417.2

10,278.6

10,485.2

10,721.3

10,915.5

11,018.3

11,322.3

11,861.0

Stockholders’ equityof Financial Services*
Total assets

FY16-4Q-<Year-to-date basis>(Billions of yen)
FY15-1Q

FY15-2Q

FY15-3Q

FY15-4Q

FY16-1Q

FY16-2Q

FY16-3Q

FY16-4Q

Revenue

279.4

490.1

812.2

1,073.1

232.7

493.2

812.4

-

Operating income

46.0

87.1

139.4

156.5

48.5

82.1

111.1

-

(Sony Life)

40.9

75.6

127.2

138.8

41.5

72.5

103.5

-

Net income

32.1

61.1

97.8

118.8

35.1

58.7

79.3

-

1,253.3

1,279.0

1,325.7

1,385.5

1,426.0

1,414.9

1,417.2

10,278.6

10,485.2

10,721.3

10,915.5

11,018.3

11,322.3

11,861.0

Stockholders’ equityof Financial Services*
Total assets-

Note: Figures on a quarterly basis and those on a year-to-date basis are expressed in billions of yen. However, the totals for the figure provided
on a year-to-date basis may not necessarily total those on a quarterly basis. Fractional amounts of less than ¥0.1 billion are rounded.
*The figure of Stockholders’ equity of Financial Services substantially corresponds to net assets attributable to shareholders under Japanese
GAAP.

2

Sony Financial Holdings (Consolidated) <Japanese GAAP><Fiscal year basis>(Billions of yen)
FY11

FY12

FY13

FY14

FY15

Ordinary revenues

1,078.0

1,259.0

1,320.4

1,352.3

1,362.0

Ordinary profit

74.6

79.2

76.1

90.0

71.1

(Sony Life)

69.4

74.6

69.2

79.6

60.7

32.8

45.0

40.5

54.4

43.3

346.5

434.1

465.7

549.3

603.0

7,241.4

8,096.1

8,841.3

9,545.8

10,352.1

Profit attributableto owners of the parent
Net assets attributable
to shareholders

Total assets<Quarterly basis>(Billions of yen)
FY15-1Q

FY15-2Q

FY15-3Q

FY15-4Q

FY16-1Q

FY16-2Q

FY16-3Q

FY16-4Q

Ordinary revenues

357.3

304.9

373.8

325.9

326.6

305.3

409.3

-

Ordinary profit

18.9

9.8

28.6

13.6

25.5

11.6

13.1

-

(Sony Life)

15.1

7.7

26.1

11.7

23.3

9.8

11.9

-

12.8

6.3

19.0

5.1

17.6

7.4

8.5

-

537.3

548.4

572.2

603.0

608.7

597.2

596.4

-

9,732.9

9,945.3

10,163.2

10,352.1

10,427.0

10,744.6

11,276.0-

Profit attributableto owners of the parent
Net assets attributable
to shareholders

Total assets<Year-to-date basis>(Billions of yen)
FY15-1Q

FY15-2Q

FY15-3Q

FY15-4Q

FY16-1Q

FY16-2Q

FY16-3Q

FY16-4Q

Ordinary revenues

357.3

662.2

1,036.1

1,362.0

326.6

631.9

1,041.3-

Ordinary profit

18.9

28.8

57.4

71.1

25.5

37.1

50.3

-

(Sony Life)

15.1

22.8

49.0

60.7

23.3

33.2

45.1

-

12.8

19.1

38.2

43.3

17.6

25.1

33.7

-

537.3

548.4

572.2

603.0

608.7

597.2

596.4

-

9,732.9

9,945.3

10,163.2

10,352.1

10,427.0

10,744.6

11,276.0-

Profit attributableto owners of the parent
Net assets attributable
to shareholders

Total assets

Note 1: Figures on a quarterly basis and those on a year-to-date basis are expressed in billions of yen. However, the totals for the figures
provided on a year-to-date basis may not necessarily total those on a quarterly basis. Fractional amounts of less than ¥0.1 billion are
discarded.
Note 2: When reporting its quarterly operating performance, SFH discloses figures on a year-to-date basis, so the figures provided on aquarterly basis are calculated as the difference of figures provided on a year-to-date basis.

3(2) Financial Forecast for the Fiscal 2016
Sony Group’s Financial Services Segment <U.S. GAAP><Fiscal year basis>(Billions of yen)

FY15 Results

FY16 Forecast

Revenue

1,073.1

1,140.0

Operating income

156.5

150.0

Sony Financial Holdings (Consolidated) <Japanese GAAP><Fiscal year basis>(Billions of yen)

FY15 Results

FY16 Forecast

Ordinary revenues

1,362.0

1,450.0

Ordinary profit

71.1

71.0

(3) Differences between U.S.GAAP and Japanese GAAP
The periodic profit and loss of the insurance business where the number of insurance contracts in force is increasing
generally tend to experience higher operating income under U.S. GAAP than the ordinary profit under Japanese GAAP,
primarily due to the following two factors:
・Difference of the accounting standards for the liabilities for future insurance policy benefits and other・Deferral and amortization of deferred insurance acquisition costs (only applicable under U.S. GAAP)
In addition, valuation gains or losses on compound financial instruments are recorded in the income statements under the
U.S. GAAP.
For more detailed information, please refer to the Appendix, “Significant Differences between Japanese GAAP and U.S.
GAAP”.

4

Differences between key financial information for the Sony Group’s Financial Services segment under U.S.
GAAP and the consolidated operating performance reported by the Sony Financial Group under Japanese
GAAP<Fiscal year basis>(Billions of yen)
FY12

FY13

FY14

FY15

Sony Group’s Financial Services Segment:
Operating income <U.S. GAAP> (A)

142.2

170.3

193.3

156.5

Ordinary profit <Japanese GAAP> (B)

79.2

76.1

90.0

71.1

Difference (A-B)

63.0

94.2

103.2

85.4

53.1

60.7

77.5

94.6

20.1

31.7

23.9

(3.8)

6.5

3.8

1.5

(2.6)

Sony Financial Holdings (Consolidated):－Difference of the accounting standards forthe liabilities for future insurance policy
benefits and other－Deferral/amortization of deferred insurance
acquisition costs (net impact)－The amounts of valuation gains or losses ofcompound financial instruments<Quarterly basis>(Billions of yen)
FY15-1Q

FY15-2Q

FY15-3Q

FY15-4Q

FY16-1Q

FY16-2Q

FY16-3Q

FY16-4Q

46.0

41.2

52.2

17.2

48.5

33.6

29.0

-

Ordinary profit <Japanese GAAP> (B)

18.9

9.8

28.6

13.6

25.5

11.6

13.1

-

Difference (A-B)

27.0

31.3

23.6

3.5

23.0

22.0

15.8

-

21.9

25.6

15.9

31.2

16.7

14.1

3.0

-

7.1

1.9

8.3

(21.1)

(0.8)

7.1

15.0

-

(2.0)

(0.7)

0.1

-

0.0

-

-

-

Sony Group’s Financial Services Segment:
Operating income <U.S. GAAP> (A)Sony Financial Holdings (Consolidated):－Difference of the accounting standards forthe liabilities for future insurance policy
benefits and other－Deferral/amortization of deferred insurance
acquisition costs (net impact)－The amounts of valuation gains or losses ofcompound financial instruments5

<Year-to-date basis>(Billions of yen)
FY15-1Q

FY15-2Q

FY15-3Q

FY15-4Q

FY16-1Q

FY16-2Q

FY16-3Q

FY16-4Q

46.0

87.1

139.4

156.5

48.5

82.1

111.1

-

Ordinary profit <Japanese GAAP> (B)

18.9

28.8

57.4

71.1

25.5

37.1

50.3

-

Difference (A-B)

27.0

58.3

81.9

85.4

23.0

45.0

60.8

-

21.9

47.5

63.4

94.6

16.7

30.8

33.8

-

7.1

9.0

17.3

(3.8)

(0.8)

6.3

21.4

-

(2.0)

(2.7)

(2.6)

(2.6)

0.0

0.0

0.0

-

Sony Group’s Financial Services Segment:
Operating income <U.S. GAAP> (A)Sony Financial Holdings (Consolidated):－Difference of the accounting standards forthe liabilities for future insurance policy
benefits and other－Deferral/amortization of deferred insurance
acquisition costs (net impact)－The amounts of valuation gains or losses ofcompound financial instruments
Note:

Figures on a quarterly basis and those on a year-to-date basis are expressed in billions of yen. However, the sum of the figures
provided on a year-to-date basis may not be necessarily the sum of those on a quarterly basis. Amounts of less than ¥0.1 billion in(B) are rounded down and the other rows are rounded off in ¥0.1 billion.

The net realized gains on available-for-sale securities for Sony Life Insurance Co. Ltd. <U.S. GAAP>
We provide the net realized gains on available-for-sale securities for Sony Life as supplementary information.
<Year-to-date basis>(Billions of yen)
FY14

Operating income
The net realized gains onavailable-for-sale securities

Difference

FY15
178.0

138.8

9.3

19.3

168.8

119.5

Note: Fractional amounts of less than ¥0.1 billion are rounded.

6

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, SFH’s parent company, which prepares its financial statements inaccordance with U.S. GAAP.
Sony Financial Group’s scope of consolidation and that of Sony Group’s Financial Services segment are described below.
< Sony Financial Group’s scope of consolidation under Japanese GAAP>*SFH’s scope of consolidation includes Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony Assurance Inc.,
Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, Sony Bank Securities Inc., Sony Payment Services Inc. , andSmartLink Network Hong Kong Limited, Sony Lifecare Inc. and Lifecare Design Inc. It also includes AEGON Sony Life
Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies accounted for under the equity method. Sony Payment
Services Inc. and SmartLink Network Hong Kong Limited were included in the scope of consolidation from the second
quarter of the year ended March 31, 2012 and the fourth quarter of the year ended March 31, 2014, and Sony Lifecare Inc.
and Lifecare Design Inc. are included in the scope of consolidation from the first quarter of the year ending March 31, 2017,
respectively. Sony Bank Securities Inc. and Sony Life Insurance (Philippines) Corporation were out of the scope of
consolidation from the second quarter of the year ended March 31, 2013 and the third quarter of the year ended March 31,
2013, respectively and thereafter.
<Scope of consolidation of the Sony Group’s Financial Services segment under U.S. GAAP>
Sony Group’s Financial Services segment includes Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony
Assurance Inc., Sony Bank Inc., Sony Bank Securities Inc., Sony Payment Services Inc., SmartLink Network Hong Kong
Limited, Sony Finance International, Inc, Sony Lifecare Inc. and Lifecare Design Inc. as consolidated subsidiaries. It also
includes AEGON Sony Life Insurance Co., Ltd., SA Reinsurance Ltd., and SFI Leasing Company, Limited as affiliatedcompanies accounted for under the equity method. However, from the fiscal year ended March 31, 2013, Sony FinanceInternational, Inc., and the equity results of SFI Leasing Company, Limited, are not included in the Sony Group’s Financial
Services segment. Sony Lifecare Inc. and Lifecare Design Inc. are included in the scope of consolidation from the firstquarter of the year ending March 31, 2017, respectively. Sony Bank Securities Inc. was out of the scope of consolidationfrom the second quarter of the year ended March 31, 2013 and thereafter.
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.
Forward-looking 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
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 inJapan or abroad.

For inquiries:
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5290-6500
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

7Appendix:
Significant Differences between Japanese GAAP and U.S. GAAP
SFH’s consolidated results are prepared in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”)
and provisions of the Insurance Business Act of Japan. 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 in accordance withaccounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant differences between Japanese
GAAP and U.S. GAAP are described below:(1) Standards for recognizing income from insurance premiums in the life insurance business
Under U.S. GAAP, premium income on traditional insurance products is recognized as revenues during the premium-paying
period. Income other than premium payments received under investment agreements or for separate agreements under universal
life insurance (*), which are equivalent to deposits, is recognized as revenue. Under Japanese GAAP, all premiums paid bypolicyholders are recognized as revenues.
*Note: For Sony Life Insurance Co., Ltd., investment agreements primarily include single premium endowment insurance, single
premium educational endowment insurance and individual annuities. Universal insurance mainly includes variable life insurance
and interest-rate sensitive whole life insurance.

(2) Standards for recognizing net gains from investment in the life insurance business
The recognition of net gains from investment in the life insurance business, which are classified in separate accounts defined
under the Insurance Business Act of Japan and which directly belong to policyholders, differs between Japanese GAAP and U.S.
GAAP. Under U.S. GAAP, net gains or losses are always recorded as revenues, whereas under Japanese GAAP such figures arerecognized as ordinary revenues if they are positive, and as ordinary expenses if negative.
(3) Policy reserves (future insurance policy benefit, etc.) in the insurance business
Since the method of calculation differs between Japanese regulations and U.S. GAAP, profits and losses during the period differ
as well. Under the Insurance Business Act of Japan, insurance companies in Japan are required to accumulate a policy reserve forthe fulfillment of future obligations such as payment of insurance benefits based on the accumulation method and actuarial
assumptions approved by the authorities of the supervisory administrative agencies in Japan, whereas under U.S. GAAP,
liabilities for future insurance policy benefits are composed of the present value of estimated future payments to policyholders.
Under U.S. GAAP, liabilities for future insurance policy benefits are computed based upon actuarial assumptions, such as future
investment yield, mortality rates, morbidity rates, contingency rates and other factors, which are revised at least once a year.
Future insurance policy benefits are remeasured and large impacts may be reflected to profit in variable insurance policies fromrevising investment yield due to fluctuations in the stock market or the bond market. Liabilities for future insurance policy
benefits also include liabilities for minimum guaranteed benefits related to certain insurance products such as variable insurance
policies. With respect to liabilities for minimum guaranteed benefits, the relevant insurance policies differ between Japanese
GAAP and U.S. GAAP.
(4) Deferral and amortization of deferred insurance acquisition costs
Under Japanese GAAP, insurance acquisition costs in the life insurance and non-life insurance businesses are charged as costs
when incurred, whereas under U.S. GAAP insurance acquisition costs are deferred and amortized, in general, equally over thepremium-paying period of the related insurance policies or the policy term by using the same calculation basis used in computing
future insurance policy benefit. The deferred insurance acquisition costs for interest rate-sensitive whole life insurance andvariable insurance are amortized over the policy term in proportion to the estimated gross profits, which are revised at least once a
year as well as the actuarial assumptions to evaluate liabilities for future insurance policy benefits. From revising the estimatedgross profits large impacts may be reflected to profit. Under U.S. GAAP, insurance acquisition costs include such items ascommissions and medical examination and inspection report fees that directly relate to the costs of acquiring new insurance
policies and renewing policies, as long as they are recoverable.
(5) Contingency reserve
Pursuant to provisions of the Insurance Business Act of Japan, to ensure the fulfillment of future obligations, insurancecompanies in Japan are required to accumulate a contingency reserve to account for the risk of insurance payment eventsoccurring at a higher-than-expected rate due to higher-than-expected mortality and morbidity rates (insurance risks), the risk ofactual investment yields being lower than the assumed investment yields relating to outstanding policies (assumed interest raterisk), the risk of actual investment results being lower than the amount guaranteed relating to the minimum guaranteed portion ofvariable life insurance or variable annuities (minimum guarantee risks) and other risks. The Insurance Business Act of Japanestablishes an accumulation standard and a maximum amount of reserve for each risk. The contingency reserve can be reversed
in regards to each risk. Contingency reserve is recorded as a component of policy reserve on the balance sheet. Under U.S.
GAAP, there is no requirement for the provision of such a legal reserve.

8(6) Catastrophe reserve
Pursuant to the provisions of the Insurance Business Act of Japan, non-life insurance companies in Japan are required toaccumulate an amount based on premium income to cover losses due to catastrophic events. The catastrophe reserve acts as aprovision against risks to which the law of large numbers is not applicable on a single-year basis, in consideration of the special
characteristics of the non-life insurance business to cover a wide range of risks including disasters. The catastrophe reserve isreversed in fiscal years in which a catastrophe occurs. Furthermore, the catastrophe reserve is accounted for as a part ofunderwriting reserves on the balance sheet. There is no requirement for the accumulation of such a legal reserve under U.S.
GAAP.
(7) Reserve for price fluctuations
Pursuant to provisions of the Insurance Business Act of Japan, insurance companies in Japan are required to accumulate a reserve
to cover losses due to price fluctuations in assets subject to market price volatility, particularly investments in stocks, bonds andforeign currency-denominated investments. The Insurance Business Act of Japan establishes the accumulation standard and amaximum amount of reserve for each asset. The reserve for price fluctuations may be reversed to reduce losses arising from pricefluctuations of those assets. Under U.S. GAAP, there is no requirement for the provision of such a legal reserve.
(8) Foreign currency transactions
The majority of the Sony Financial Group’s operations in the banking business involve transactions denominated in foreign
currencies. Under Japanese GAAP, transactions involving assets and liabilities denominated in foreign currencies are in principaltranslated to yen at the exchange rate prevailing on the date of the settlement of accounts, and any translation adjustments arerecorded in the statements of income as foreign exchange gains or losses. For that reason, in the banking business, translation
adjustments on those investments coming from foreign currency deposits (liabilities) are offset partially in the statements ofincome by ones from investments in available-for-sale bonds denominated in foreign currency (assets) for the purpose ofcovering those foreign currency deposits. However, under U.S. GAAP, although translation adjustments on foreign currency
deposits (liabilities) are recorded in the statements of income, translation adjustments on available-for-sale bonds denominated inforeign currency (assets) are posted directly to net assets in accordance with fluctuations in the fair market value of securities held,
and are therefore not recorded in the statements of income until maturity or sale. As such, under U.S. GAAP, asset-side
translation adjustments and liability-side translation adjustments are recorded differently. Therefore, foreign exchange gains orlosses resulting from liability-side exchange rate fluctuations have a larger impact on profit under U.S. GAAP than is the caseunder Japanese GAAP.
(9) Accounting treatment of compound financial instruments (financial instruments including derivatives)
When accounting for compound financial instruments under U.S. GAAP, if such financial instruments are valued together, they
are marked to market together regardless of the category in which they are held, and valuation gains or losses are recorded in theincome statements. However, under Japanese GAAP the method for valuing these instruments differs depending on the category
in which they are held. Consequently, the amounts of valuation gains or losses, gains or losses on sale, and impairment losses
differ depending on whether U.S. GAAP or Japanese GAAP is applied.
(10) Accounting for policy reserve matching bonds
Life insurance businesses maintain policy reserves to ensure their ability to meet their long-term insurance obligations, and use
bonds to manage the interest rate risk associated with the characteristics of those obligations. With the aim of reflecting the realityof managing this interest rate risk, under Japanese GAAP the “Temporary Treatment of Accounting and Auditing concerning
Policy-Reserve-Matching Bonds in the Insurance Industry” (The Japanese Institute of Certified Public Accounts Industry Audit
Committee Report No. 21) categorizes bonds used for this purpose as “policy reserve matching bonds,” authorizes their valuation
and accounting treatment using the amortized cost method. Sony Life Insurance Co., Ltd. valued bonds categorized as “policy
reserve matching bonds” using the amortized cost method in accordance with Japanese GAAP. However, as the accounting
treatment recognized under Japanese GAAP is not applied under U.S. GAAP, such bonds are classified as securities available forsale, measured at fair value as of the date of the financial statements, and recorded the unrealized holding gains and losses (net oftax) in accumulated other comprehensive income. Gains or losses on sale of bonds are realized as profit or loss in the income
statements.

9