Consolidated Financial Summary (Japanese GAAP)
for the Nine Months Ended December 31, 2016
February 14, 2017
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/ index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Shigeru Ishii, President and Representative Director
Inquiries:
Yasuo Hasegawa, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)Company name:1.

Consolidated financial results for the nine months ended December 31, 2016
(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change

1,041,307

0.5

50,300(12.4)

33,716(11.8)

1,036,134

1.4

57,450(24.3)

38,224(24.3)For the nine months ended
December 31, 2016
For the nine months ended
December 31, 2015
Note: Comprehensive Income:For the nine months ended December 31, 2016: ¥18,238 million:
For the nine months ended December 31, 2015: ¥40,268 million:

For the nine months ended
December 31, 2016
For the nine months ended
December 31, 2015

Yen

Yen

77.51

77.51

87.87

—

Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of December 31, 2016

11,276,096

597,928

5.3

As of March 31, 2016

10,352,114

604,377

5.8

As of December 31, 2016: ¥596,498 million¥603,048 million
As of March 31, 2016:

Note: Net Assets Attributable to Shareholders:2.

(54.7%)(55.3%)Net Income per
Share(Fully Diluted)

Net Income per
Share

(2)

Profit Attributable to Owners of
the Parent

Ordinary Profit

Dividends
Dividend per Share

Record date
For the year ended
March 31, 2016
For the year ending
March 31, 2017
For the year ending
March 31, 2017
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

—

0.00

—

—

0.00

—

55.00

55.00

55.00

55.00

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

3.

Forecast of consolidated financial results for the year ending March 31, 2017
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

For the year ending
March 31, 2017
4.

Ordinary Profit

Profit Attributable to
Owners of the Parent

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,450,000

6.5

71,000(0.1)

46,000

6.1

Net Income per
Share
Yen

105.75Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of
consolidation): None
(2) Application of special accounting methods for preparing quarterly Consolidated Financial Statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the Consolidated Financial Statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: Yes(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the Consolidated Financial Statements: None

Note: For details, please refer to the section entitled “2.Changes in accounting policies, accounting estimates and restatements of the Consolidated
Financial Statements” under “I. Notes Regarding Summary Information” on page 2 of the attachment.

(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2016:
As of March 31, 2016:(b) Number of treasury shares
As of December 31, 2016:
As of March 31, 2016:(c) Weighted-average number of shares
For the nine months ended December 31, 2016:
For the nine months ended December 31, 2015:

435,000,000 shares
435,000,000 shares
52,975 shares
75 shares
434,988,191 shares
434,999,936 shares

Status of quarterly review procedures
Quarterly review procedures are completed in accordance with Article 193-2-1 of the Financial Instruments and Exchange Law
of Japan. However, quarterly Consolidated Financial Statements in this document are not subject to such quarterly review
procedures.

Content of Supplemental Materials
I.

Notes Regarding Summary Information
1.

Changes in significant subsidiaries during the period under review (changes in specified
subsidiaries accompanying changes in scope of consolidation) …………………………….

2.

Changes in accounting policies, accounting estimates and restatements of theConsolidated Financial Statements………………………………………………………….

II.

III.

2
2

Consolidated Financial Statements
1.

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

2.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

3(Consolidated Statements of Income) ………………………………………………………

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

8

3.

Segment Information ………………………………………...……………………………..

9

4.

Subsequent Events ………………………………………………………………………….

9

Attachment
Consolidated Financial Results for the Nine Months Ended December 31, 2016 and Sony Life’s
Market Consistent Embedded Value as of December 31, 2016…………………………………...

11* The conference call for explaining the Sony Financial Group financial results will be held at 15:30 (Tokyo),February 14, 2017. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on February 14, 2017 after 15:00, and its Q&A
summary at a later date on Earnings Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/en/financial_info/results/index.html* On February 14, 2017, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce their financial results forthe nine months ended December 31, 2016. SFH prepared an English-language summary of those Japanese
announcements made by the above subsidiaries, solely for convenience of non-Japanese readers.

I. Notes Regarding Summary Information
1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries accompanying
changes in scope of consolidation)
None.
Although not specified subsidiaries, Sony Lifecare Inc., a holding company that oversees the Sony Financial Group’s
operations in the nursing care business, and nursing-care provider Lifecare Design Inc., which were non-consolidated
subsidiaries in the previous consolidated fiscal year, have been included in the scope of consolidation, due to a rise in theirimportance from the first quarter of the fiscal year ending March 31, 2017. The results of both companies are included in the“other” category in the consolidated statements of income.

2. Changes in accounting policies, accounting estimates and restatements of the Consolidated Financial Statements
Changes in accounting policies(Application of the “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26,
March 28, 2016)(hereinafter, the “Recoverability Implementation Guidance”) )The Sony Financial Group has applied the Recoverability Implementation Guidance from the first quarter of the fiscal year
ending March 31, 2017 and partially revised the accounting method of recoverability of deferred tax assets.
The Recoverability Implementation Guidance has been applied in accordance with the transitional treatment set forth in
Article 49(4) of the Recoverability Implementation Guidance. The differences between (i) the amounts of deferred tax assets
and deferred tax liabilities when provisions applicable from ① to ③ of Article 49(3) of the Recoverability Implementation
Guidance were applied as of April 1, 2016, and (ii) the amounts of deferred tax assets and deferred tax liabilities at the end of
the fiscal year ended March 31, 2016, were added to retained earnings as of April 1, 2016.
As a result, deferred tax assets increased ¥48 million and retained earnings rose ¥105 million, while deferred tax liabilities
decreased ¥56 million as of April 1, 2016.

II. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016

As of December 31, 2016

Cash and due from banks¥144,364¥290,943

Call loans and bills bought

88,200–

Monetary claims purchased

884

651

AssetsMonetary trusts

303,973

296,991

Securities

8,021,493

8,677,903

Loans

1,515,833

1,681,277

Tangible fixed assets

121,376

124,197

Intangible fixed assets

29,88729,943Due from reinsurers

399

1,101

Foreign exchanges

1,139

4,926

115,474

155,987

Other assets
Net defined benefit asset

2,216

2,400

Deferred tax assets

8,181

11,125Reserve for possible loan losses(1,308)(1,353)¥10,352,114¥11,276,096

Total Assets

(Millions of yen)
As of March 31, 2016

As of December 31, 2016

¥7,504,420¥7,960,873

67,177

69,144

7,432,237

7,886,221

5,006

5,507

Due to agencies

2,455

1,496

Due to reinsurers

626

2,476

1,912,592

2,081,100–

40,000Borrowed money

40,00090,000Foreign exchanges

87

130

Bonds payable

20,00010,000

Other liabilities

183,835

412,727

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

Deposits
Call money and bills soldReserve for employees’ bonuses

3,557

1,977

Net defined benefit liability

29,26330,857351

353

44,41045,68744,41045,687

5,647

–

488

488

9,747,736

10,678,168

Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets
Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

238,079

247,157(0)(81)

Treasury stock

453,256

462,253

Net unrealized gains (losses) on other securities, net of taxes

Total shareholders’ equity

157,364

140,289

Net deferred gains (losses) on hedging instruments, net of taxes(2,347)(1,387)

Land revaluation, net of taxes(1,465)(1,465)Remeasurements of defined benefit plans, net of taxes(3,760)(3,190)Total accumulated other comprehensive income

149,791

134,245

–

32

1,329

1,396

604,377

597,928¥10,352,114¥11,276,096

Subscription rights to shares
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the nine months ended
December 31, 2015
Ordinary Revenues

For the nine months ended
December 31, 2016

¥1,036,134¥1,041,307

935,374

936,806

Income from insurance premiums

753,964

704,439

Investment income

Ordinary Revenues from the Life Insurance Business

153,071

194,629(Interest income and dividends)

105,180

109,689(Income from monetary trusts, net)

10,837

3,366

–

111

(Gains on trading securities, net)
(Gains on sale of securities)

12,193

1,306(Gains on separate accounts, net)

24,40455,93228,33937,737

72,77675,94871,80374,323

71,762

74,273

41

50

952

1,595

981

994

(Gains on sale of securities)

12

650

(Transfer to interest and dividends on deposits of premiums)

(41)

(50)

20

29

27,98328,37919,055

19,618(Interest income on loans)

10,955

11,904(Interest income and dividends on securities)

8,051

7,660

Fees and commissions

4,703

4,941

Other operating income

3,941

3,651

Other ordinary income

283

168

–

173

–

173

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)(Interest and dividends on deposits of premiums)
Investment income(Interest income and dividends)

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

Other
Other ordinary income(Continued)

(Millions of yen)
For the nine months ended
December 31, 2015

For the nine months ended
December 31, 2016

Ordinary Expenses¥978,683¥991,006

Ordinary Expenses from the Life Insurance Business

888,087

896,244279,355

276,00961,30562,524

Insurance claims and other payments(Insurance claims)(Annuity payments)

7,725

8,266

(Insurance benefits)

60,97975,877(Surrender payments)

142,940

122,713

4,920

2,428

480,245447,069

4,648

462

475,595

446,60510

Investment expenses

4,851

38,802(Interest expenses)

40

26(Losses on trading securities, net)

94–

(Losses on derivatives, net)

515

34,275

Operating expenses

97,082

101,324

Other ordinary expenses

26,55233,03868,43470,451

Underwriting expenses

50,58052,231(Net losses paid)

35,51336,941(Loss adjustment expenses)

5,267

5,519

779

887

(Provision for reserve for outstanding losses)

1,651

1,503

(Provision for underwriting reserves)

7,368

7,378

(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

Ordinary Expenses from the Non-life Insurance Business(Net commission and brokerage fees)

Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses

4

2

4

–

17,846

18,212

2

4(Continued)

(Millions of yen)
For the nine months ended
December 31, 2015
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions
Other operating expenses

For the nine months ended
December 31, 2016

¥22,161¥23,603

6,692

6,473

3,532

3,842

1,713

2,658

125

77

13,37914,232

250

161

–

708

–

708

Ordinary Profit

57,45050,300Extraordinary Losses

1,936

1,400

875

111

6

4

1,054

1,277

1,054

1,277

–

7

855

814

Income Before Income Taxes

54,65848,085

Income Taxes – Current

19,86016,653General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses

Losses on disposal of fixed assets
Impairment losses
Provision for special reserves
Provision for reserve for price fluctuations
OthersProvision for Reserve for Policyholders' Dividends

Income Taxes – Deferred(3,457)(2,349)Total Income Taxes

16,403

14,303

Profit38,25533,781

31

65¥38,224¥33,716

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

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the nine months ended
December 31, 2015
Profit

For the nine months ended
December 31, 2016

¥38,255¥33,781

Net unrealized gains (losses) on other securities, net of taxes

1,417(17,075)

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

97

960

Foreign currency translation adjustments

0

–

497

571

2,012

(15,543)¥40,268¥18,238

40,235

18,17032

67

Other comprehensive income

Remeasurements of defined benefit plans, net of taxes
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

3． Segment Information(1) Segment Information by reporting segment
For the nine months ended December 31, 2015
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥935,374
2,014
937,389¥48,804¥72,776
1
72,777¥3,824¥27,983155
28,139¥4,666

Total¥1,036,134
2,171
1,038,305¥57,294

For the nine months ended December 31, 2016
Millions of yen
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Non-life
insurancebusiness¥936,806
2,330
939,137¥42,392

Bankingbusiness¥75,948
0
75,948¥4,999¥28,379
143
28,522¥3,310Total¥1,041,133
2,474
1,043,608¥50,702

Other
¥173
–
173
¥(535)

Total¥1,041,307
2,474
1,043,781¥50,167(Note) “Other” consists of Sony Lifecare Inc., a holding company that oversees the Sony Financial Group’s operations in the nursing
care business, and nursing-care provider Lifecare Design Inc., which have been included in the scope of consolidation from the firstquarter of the fiscal year ending March 31, 2017.

(2) Reconciliations of the totals of reportable segments’ profit to quarterly consolidated statement of income

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

Millions of yen
For the nine months ended
For the nine months ended
December 31, 2015
December 31, 2016
¥57,294¥50,702
–
(535)
6
6
149
126
¥57,450(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None

4． Subsequent Events
There were no applicable subsequent events.

¥50,300

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ insignificant respects from the financial information reported by Sony Corporation, SFH’s parent company, which
prepares its financial statements in accordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
Sony Lifecare Inc*
Lifecare Design Inc.**Sony Lifecare Inc. and Lifecare Design Inc. are included in the scope of consolidation from the first quarter
ended June 30, 2016.
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of theSony 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, business performance, events or conditions.
Forward-looking statements, whether spoken or written, may also be included in other materials released tothe 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 informationthat is currently available to them. As such, they are subject to various risks and uncertainties, and actual
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. SonyFinancial 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 inconnection with any contract or commitment whatsoever in Japan 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

III. Attachment
Content of Presentation Material

Consolidated Financial Results for the Nine Months Ended December 31, 2016 andSony Life’s Market Consistent Embedded Value as of December 31, 2016
・Consolidated Operating Results for the Nine Months Ended December 31, 2016……………
・Consolidated Financial Forecast for the Year Ending March 31, 2017 ………………………
・Sony Life’s MCEV and ESR as of December 31, 2016………………………………………
・Appendix ………………………………………………………………………………………

3
29
31
34

Attachment

Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2016
andSony Life’s MCEV as of December 31, 2016

Sony Financial Holdings Inc.
February 14, 2017
Sony Financial Holdings Inc. All Rights Reserved

Content
 Consolidated Operating Results for the Nine Months Ended December 31, 2016

<FY16.3Q (9M)>

P.3

 Forecast of Consolidated Financial Results for the Year Ending March 31, 2017

(FY16)

P.29

 Sony Life’s MCEV and ESR as of December 31, 2016

P.31

 Appendix

P.34

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group. Anystatements 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, business performance, 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 onassumptions, decisions and judgments made by the management of Sony Financial Group companies, and are based on information that is currently
available to them. As such, they are subject to various risks and uncertainties, and actual business results may vary 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 in this presentation does not constitute or form part of any offer for sale or subscription of orsolicitation 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 withany contract or commitment whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.

Sony Financial Holdings Inc. All Rights Reserved2

Attachment

Consolidated Operating Results for
the Nine Months Ended December 31, 2016
<FY16.3Q (9M)>Sony Financial Holdings Inc. All Rights Reserved

3

Highlights of Consolidated Operating Performance for
FY16.3Q (9M) (1)Consolidated ordinary revenues(Billions of yen)

Consolidated ordinary profit

1,036.1

1,041.3+0.5%

FY15.3Q (9M)

937.3

939.1

+1.7

+0.2%

Ordinary profit

48.8

42.3

(6.4)

(13.1%)

Non-life
Insurancebusiness

Ordinary revenues

72.7

75.9

+3.1

+4.4%

Ordinary profit

3.8

4.9

+1.1

+30.7%

Ordinary revenues

28.1

28.5

+0.3

+1.4%

Ordinary profit

4.6

3.3

(1.3)

(29.1%)

(2.1)

(2.3)

(0.1)

―

0.1

(0.4)

(0.5)

―

1,036.1

1,041.3

+5.1

+0.5%

Ordinary profit

57.4

50.3

(7.1)

(12.4%)

Profit attributableto owners of theparent

38.2

33.7

(4.5)

(11.8%)

Ordinary revenues
Ordinary profit
Ordinary revenues

50.3
Consolidated

FY16.3Q (9M)(Billions of yen)

ChangeOrdinary revenues

Intersegment
adjustments*

57.4

FY16.3Q(9M)

Life
Insurancebusiness

Bankingbusiness(12.4%)

FY15.3Q(9M)*Ordinary profit in “Intersegment adjustments” is mainly from SFH. Nursing care business has been
included in the scope of consolidation from FY16.1Q.
*Comprehensive income : FY15.3Q (9M): ¥40.2 billion, FY16.3Q (9M): ¥18.2 billion(Billions of yen)

Consolidated

16.12.31

604.3

597.9

(6.4)

(1.1%)

10,352.1

11,276.0+923.9+8.9%

Net assets
Total assets

Change from
16.3.31

16.3.31Sony Financial Holdings Inc. All Rights Reserved

4Attachment

Highlights of Consolidated Operating Performance for
FY16.3Q (9M) (2)Life Insurance Business: Ordinary revenues were essentially flat year on year, because an increase ininvestment income was offset by a decrease in insurance premium revenues led by a decline in sales ofsingle premium products. Ordinary profit decreased year on year due mainly to lower gains on sale ofsecurities in the general account. The provision of policy reserves for minimum guarantees for variable life
insurance declined owing to a lower acquisition of new policies and the improvement of the market
conditions. This positive impact on ordinary profit, however, was partially offset by a deterioration in net
gains/losses on derivative transactions to hedge market-related risksNon-life Insurance Business: Ordinary revenues expanded year on year, owing mainly to an increase in
net premiums written primarily for mainstay automobile insurance. Ordinary profit increased year on year,
due mainly to the increase in ordinary revenues, including gains on sale of securities, and a lower expense
ratio.
Banking Business: Ordinary revenues increased year on year due to an increase in interest income onloans in line with a favorably growing balance of mortgage loans and an increase in ordinary revenues fromSony Payment Services (Sony Bank’s 57% owned subsidiary), partially offset by a decrease in interest anddividend income on securities. Ordinary profit decreased year on year due to the lower level of interest rates,
an increase in initial expenses led by a higher execution of mortgage loans, and decreased volumes offoreign currency and investment trust transactions of customers.
Consolidated ordinary revenues increased 0.5% year on year, to ¥1,041.3 billion. Ordinary revenues fromthe life insurance business were flat year on year, while ordinary revenues from the non-life insurance andthe banking businesses increased. Consolidated ordinary profit decreased 12.4% year on year, to ¥50.3
billion. By business segment, ordinary profit from the life insurance and the banking businesses decreased,
whereas ordinary profit from the non-life insurance business increased. Profit attributable to owners of theparent was down 11.8% year on year, to ¥33.7 billion due to the decrease in consolidated ordinary profit.

Sony Financial Holdings Inc. All Rights Reserved

5Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues

937.2

Ordinary profit(Billions of yen)

938.9

+0.2%

(7.8%)(Billions of yen)

938.9

+1.7

+0.2%

754.8

705.4

(49.4)(6.5%)

Investment income

153.4

195.0

+41.5

+27.1%

Interest income and dividends

105.5

110.0

+4.5

+4.3%

Income from monetary trusts, net

10.8

3.3

(7.4)

(68.9%)

Gains on sale of securities

12.1

1.3

(10.8)(89.3%)

Foreign exchange gains, net

0.4

24.2

+23.7

―

Gains on separate accounts, net

24.4

55.9

+31.5

+129.2%

888.2

893.7

+5.5

+0.6%

Insurance claims and other payments

279.3

276.0

(3.3)

(1.2%)

Provision for policy reserves and others

480.2

447.0

(33.1)(6.9%)

5.0

38.9

+33.9

+667.9%

0.5

34.2

+33.7

―

97.4

101.6

+4.2

+4.4%

49.0

45.1

(3.8)

(7.8%)(1.6)(5.0%)

Investment expenses

FY15.3Q (9M)

FY16.3Q (9M)

◆ Ordinary revenues were flat but ordinary profit decreased
year on year.
◆ Income from insurance premiums decreased due to a
decline in sales of single premium products.
◆ Investment income increased led by higher gains on
separate account despite lower gains on sale of securities
in the general account.
◆ Ordinary profit decreased due mainly to lower gains on saleof securities in the general account. The provision of policy
reserves for minimum guarantees for variable life
insurance declined owing to a lower acquisitions of newpolicies and the improvement of the market conditions. The
positive impact on ordinary profit, however, was partially
offset by a deterioration in net gains/losses on derivativetransactions to hedge market-related risks.

Change937.2

Ordinary expenses

49.0

FY16.3Q(9M)

Income from insurance premiums

Ordinary revenues

45.1

FY15.3Q(9M)

Losses on derivatives, net
Operating expenses
Ordinary profit

32.8

31.2

16.3.31

16.12.31

Securities

7,273.3

7,916.0+642.6+8.8%

Policy reserves

7,336.5

7,783.1+446.6

+6.1%

482.1

483.0

+0.9

+0.2%

150.6

133.5

(17.0)(11.3%)

8,035.4

8,721.1+685.7

+8.5%

850.3

957.9

+107.5+12.7%Net income(Billions of yen)

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

Sony Financial Holdings Inc. All Rights Reserved

Change from 16.3.31

6

Attachment

Overview of Operating Performance:
Sony Life (Non-consolidated)
FY15.3Q(9M)

FY16.3Q(9M)

ChangeNew policy amount

4,052.4

3,499.7(13.6%)

Lapse and surrender amount

1,474.9

1,371.1(7.0%)

Lapse and surrender rate

3.60%

3.18%

(0.42pt)

Policy amount in force

42,841.7

44,633.9

+4.2%

65.8

54.1

(17.7%)(Billions of yen)

Annualized premiums from new policies
Of which, third-sector products
Annualized premiums from insurance in force
Of which, third-sector products

12.0

11.2

(7.0%)

771.8

807.3

+4.6%

178.3

185.1

+3.8%

<Reasons for changes>◆ Decreased due to lower sales ofvariable life insurance despite
favorable sales of U.S. dollardenominated insurance and termlife insurance.

◆ Decreased due to lower sales ofvariable life insurance despite
favorable sales of term life
insurance and U.S. dollardenominated insurance.

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

(Billions of yen)

FY15.3Q(9M)

FY16.3Q(9M)

ChangeGains from investment, net (General account)

123.9

100.0

(19.3%)

Core profit

35.1

65.8

+87.5%

Positive spread

11.7

11.1

(5.1%)

Non-consolidated solvency margin ratio

16.3.31

16.12.31

Change from
16.3.312,722.8%

2,731.1%+8.3pt◆ Increased due mainly to adecrease in the provision of policy
reserves for minimum guarantees
for variable life insurance
reflecting a lower acquisition of
new policies and the improvementof the market conditions.

Sony Financial Holdings Inc. All Rights Reserved

7

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

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount

Annualized premiums from new policies

Number of new policies

Of which, third-sector(Billions of yen)(Trillions of yen)

6

463

501

(Thousands ofpolicies)(22.5%)

500

388

5

400
4

4.05
3.61

(13.6%)

80

65.8
60

(17.7%)

58.0

54.1

3.49
300

3

40

200
2

20
100

1

0

0
FY14.3Q (9M)

FY15.3Q (9M)

FY16.3Q (9M)

(7.0%)

11.7

12.0

11.2

FY14.3Q (9M)

FY15.3Q (9M)

FY16.3Q (9M)0Sony Financial Holdings Inc. All Rights Reserved

8

Attachment

Sony Life’s Product Portfolio
Annualized Premiums from New Policies by Product

FY15 (12M) ¥85.0 billion

FY16.3Q (3M) ¥15.3 billion

米ドル建終身8%

FY16.1H(6M) ¥38.7 billion

Sony Financial Holdings Inc. All Rights Reserved

9Operating Performance :Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force

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

Policy amount in force(Trillions of yen)

50

42.8

(Millions ofpolicies)

+3.9%

7.04

6.98
+4.2%

Annualized premiums from insurance in force

Number of policies in force

+2.9%

8

800

771.8

+4.6%

807.3

781.3
+3.3%

44.6

43.1

40

7.25

(Billions of yen)

Of which, third-sector

6

600

4

400

2

200

+3.4%

30

20

10

0

0
15.12.31

16.3.31

16.12.31

+3.8%

178.3

179.7

15.12.31

16.3.31

+3.0%

185.1

0

Sony Financial Holdings Inc. All Rights Reserved

16.12.31

10

Attachment

Operating Performance :Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate
(9M)

Lapse and surrender rate
(12Ml)

(%)

10

8

5.35

6

4.72

4

4.00

(0.42pt)

3.60

3.18

2

0
FY14

FY15

FY16

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

Sony Financial Holdings Inc. All Rights Reserved

11

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

800

754.8 (6.5%)

705.4

120

675.4
100

99.5

105.5

+4.3%

110.0

600
80

400

60

40
200
20

0
FY14.3Q (9M)

FY15.3Q (9M)

FY16.3Q (9M)

0
FY14.3Q (9M)Sony Financial Holdings Inc. All Rights Reserved

FY15.3Q (9M)

FY16.3Q (9M)12

Attachment

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

Ordinary Profit(Billions of yen)(Billions of yen)

80

80

65.8

67.1

60.6
60

60

+87.5%

49.0

35.1

40

(7.8%)

45.1

40

20

20

0

0
FY14.3Q (9M)

FY15.3Q (9M)

FY16.3Q (9M)

FY14.3Q (9M)

(Reference) Impact on core profit

FY15.3Q (9M)

FY16.3Q (9M)

(Reference) Main differences from core profit
FY14.3Q(9M)

FY15.3Q
(9M)

9.4

11.7

11.1

Provision of policy reserves for minimum
guarantees for variable life insurance (*)(3.3)(24.2)(4.5)

Others

54.5

47.6

59.2

(Billions of yen)
Positive spread

FY16.3Q(9M)(Billions of yen)

FY14.3Q(9M)

FY15.3Q(9M)

FY16.3Q
(9M)

10.4

19.7

0.0

―

(0.6)

(14.2)

(3.8)

(4.9)

(6.2)

Capital gains (losses) excluding gains or losses
on hedges (*)
Gains (losses) on hedges of variable life
insurance
Provision of contingency reserve (*)“Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance.

Sony Financial Holdings Inc. All Rights Reserved

13

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees+354(Number)

5,000

4,612
4,500

4,329

4,352

15.3.3115.6.30

4,415

4,682

4,751

(21)

4,730

4,376

4,000

3,500

3,000
15.9.30

15.12.31

16.3.31

16.6.30

Sony Financial Holdings Inc. All Rights Reserved

16.9.30

16.12.31

14

Attachment

Operating Performance :Sony Life (Non-consolidated) (7)Breakdown of General Account Assets
16.3.31

16.12.31

Amount%Amount

%6,351.1

88.4%

6,722.1

86.6%

Japanese stocks

33.3

0.5%

34.9

0.5%

Foreign bonds

70.1

1.0%

234.1

3.0%

(Billions of yen)Japanese governmentand corporate bonds

Foreign stocks

23.0

0.3%

31.4

0.4%

Monetary trusts

280.9

3.9%

273.9

3.5%

Policy loans

171.6

2.4%

176.8

2.3%

Real estate*

115.8

1.6%

117.7

1.5%

Cash and call loans

52.5

0.7%

55.4

0.7%

Others

86.4

1.2%

116.6

1.5%

7,185.0

100.0%

7,763.2

100.0%

Total<Asset management review>
We have continued to accumulate ultralongterm bonds to match the liability
characteristics of insurance policies with longterm maturities with the aim of reducing
interest rate risk.
<Bond duration>
Mar. 31, 2015: 20.3 years
Mar. 31, 2016: 21.8 years
Dec. 31, 2016: 21.5 years■ Investment in the monetary trusts is mainly into
Japanese government and corporate bonds.
■ The holding ratio on the real status of Japanese
government and corporate bonds including
those invested in monetary trusts in the generalaccount assets: As of Dec. 31, 2016: 90.1%(As of Mar. 31, 2016: 92.3%)*Real estate is the total of land, buildings, and construction in progress.

Sony Financial Holdings Inc. All Rights Reserved

15

Review of Sony Life’s Asset Management
Diversify asset management under the negative interest rate environment(purchase securities in the general account asset)
Japanese

FY14 (12M) stocks 0.4% Other securities
0.4%

continue to invest in assets that match the liability
characteristics.

米国債 ×%
Foreign bonds
3.9%

・Expand investments in ultralong-term Japanese
corporate bonds (including FILP agency bonds)
・Significantly increase investments in U.S. government
bonds, responding to higher sales of U.S. dollar
denominated insurance policies.

JGBs 95.4%
国債
95.4%

FY15 (12M)

Japanese stocks
0.5%

Foreign
外国公社債
bonds
2.3%
社債
Japanese
2.3%
11.9%
corporatebonds 11.9%
JGBs
国債
85.3%
85.3%

■Promote diversification of investment assets while

FY16.3Q (9M)

Japanesestocks 0.4%

Foreign
bonds
外国公社債
28.3%
28.3%

国債
JGBs
xxx%
40.3%

Japanese
corporatebonds 31.0%

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

Sony Financial Holdings Inc. All Rights Reserved

16

Attachment

Operating Performance :Sony Life (Non-consolidated) (8)Non-consolidated Solvency Margin Ratio

(%)

3,000

2,731.1
2,722.8
2,555.0+8.3pt

2,500

2,000

1,500

1,000
0
15.3.31

16.3.31

16.12.31

Sony Financial Holdings Inc. All Rights Reserved

17

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

FY15.3Q(9M)

FY16.3Q
(9M)

72.7

75.9

+3.1

+4.4%

Underwriting income

71.8

74.3

+2.5

+3.5%

Investment income

0.9

1.5

+0.6

+67.5%

68.9

70.9

+1.9

+2.9%

Underwriting expenses

50.9

52.5

+1.6

+3.2%

Investment expenses

0.0

－

(0.0)

(100.0%)Operating general andadministrative expenses

18.0

18.3

+0.3

+2.0%

Ordinary profit

3.8

4.9

+1.1

+30.6%

Extraordinary Losses

0.8

0.0

(0.8)

(97.7%)Net income

2.1

3.6

+1.4

+70.5%

16.3.31

16.12.31

Underwriting reserves

95.7

103.0

+7.3

+7.7%

Net assets

28.3

29.6

+1.3

+4.6%

Total assets

172.3

179.4

+7.0

+4.1%

(Billions of yen)

72.7

75.9

+4.4%

Ordinary revenues

4.9+30.6%

3.8

FY15.3Q (9M)

FY16.3Q (9M)(Billions of yen)

◆ Both ordinary revenues and ordinary profit
increased year on year.
◆ Ordinary revenues expanded owing to anincrease in net premiums written primarily formainstay automobile insurance.
◆ Ordinary profit increased due mainly to theincrease in ordinary revenues, including gains
on sale of securities, and a lower expense ratio.

Ordinary expenses(Billions of yen)Sony Financial Holdings Inc. All Rights Reserved

ChangeChange from
16.3.3118

Attachment

Overview of Operating Performance:
Sony Assurance
FY15.3Q(9M)(Billions of yen)

FY16.3Q(9M)<Reasons for changes>

ChangeDirect premiums written

70.8

73.3

+3.5%

Net premiums written

71.7

74.2

+3.5%

Net losses paid

35.5

36.9

+4.0%

Underwriting profit

2.9

3.4

+17.5%Net loss ratio

56.8%

57.2%

+0.4ptNet expense ratio

26.6%

26.3%

(0.3pt)Combined ratio

83.4%

83.5%

+0.1pt◆ Increased mainly in its mainstay
automobile insurance.

◆ Declined due to a proper control
on overall operating expenses.

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

FY15.3Q(9M)

FY16.3Q(9M)

E. I. loss ratio

63.1%

62.9%

(0.2pt)E. I. loss ratio + Net expense ratio

89.7%

89.2%

(0.5pt)ChangeNotes:
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded from the above calculation.]

Number of policies in force

16.3.31

16.12.31

Change from 16.3.31

1.79 million

1.84 million+0.04 million

693.5%

771.1%

Non-consolidated
solvency margin ratio◆ Declined slightly due to a decreasein provision for reserve foroutstanding losses in automobile
insurance.

+2.5%+77.6pt

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

Sony Financial Holdings Inc. All Rights Reserved

19Sony Assurance’s Underwriting Performanceby Type of Policy
Net Premiums Written

Direct Premiums Written
FY15.3Q(9M)

FY16.3Q(9M)

Change

Fire

259

170

(34.4%)

Marine－－－(Millions of yen)

FY15.3Q(9M)

FY16.3Q(9M)

Change

Fire

35

18

(48.9%)

Marine36(2)－(Millions of yen)

Personal accident

6,496

6,583

+1.3%

Personal accident

6,721

6,811

+1.3%

Voluntary automobile

64,05366,563+3.9%

Voluntary automobile

63,913

66,371+3.8%

Compulsory
automobile liability

1,055

1,074

+1.9%

71,762

74,273+3.5%

Compulsory
automobile liability
Total

－

－

－

70,81073,317

+3.5%

Total

*Medical and cancer insurance is included in personal accident.

Net losses paid
FY15.3Q(9M)

FY16.3Q(9M)

ChangeFire15+335.4%

Marine

122

(9)

－

Personal accident

1,838

1,919

+4.4%

Voluntary automobile

32,58734,034+4.4%Compulsory
automobile liability

963

991

+2.9%

Total

35,51336,941+4.0%(Millions of yen)Sony Financial Holdings Inc. All Rights Reserved20

Attachment

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

Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance
Personal accident insurance
OthersNumber of policies in force(Billions of yen)

100

Ordinary profit

Adjusted ordinary profit

7.3

8+20.7%

6.6(Millions ofpolicies)

1.84

1.77 +3.8%

1.67(Billions of yen)

6.0
6

4.9
80

71.7

68.9

+3.5%

74.2

1.5

4.4

1.0
6.8

3.8

4

+30.6%

66.3

60

1

2

40
0.5

20
0
FY14.3Q (9M)
00

FY14.3Q (9M)

FY15.3Q (9M)

FY16.3Q (9M)

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

FY15.3Q (9M)

FY16.3Q (9M)

*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(Reference) Provision for catastrophe reserve(Billions of yen)

FY14.3Q (9M) FY15.3Q (9M) FY16.3Q (9M)

Provision for catastrophe reserve

2.1

2.2

2.3

*Provision for catastrophe reserve is described as positive amount.

Sony Financial Holdings Inc. All Rights Reserved

21

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

Net expense ratio

Net expense ratio

(%)

(%)
100

91.0

90.4

88.8

89.2

89.7

100

84.3
80

(0.5pt)

60
64.3

63.5

81.5

(0.2pt)

83.5

83.4

80

62.9

63.1

63.3

84.8

+0.1pt

60
57.6

57.8

56.2

56.8

57.2
+0.4pt

40

20

40

26.7

27.1

(0.3pt)

20

25.3

26.6

26.3

FY14.3Q

FY15.3Q(9M)

FY16.3Q

0
FY14

FY15

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

26.7

27.1

FY14

FY15

(0.3pt)

25.3

26.6

FY14.3Q

FY15.3Q
(9M)

26.3

0
FY16.3Q

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

22

Attachment

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

771.1%

800

693.5%
629.6%+77.6pt

600

400

200

0
15.3.31

16.3.31

16.12.31

Sony Financial Holdings Inc. All Rights Reserved

23

Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)
Consolidated ordinary revenues
Consolidated ordinary profit+1.3%<Consolidated>

28.5

28.1

(29.1%)

4.6

FY15.3Q(9M)

FY16.3Q(9M)

Consolidated ordinary revenues

28.1

28.5

+0.3

+1.3%

Consolidated ordinary profit

4.6

3.3

(1.3)

(29.1%)

Profit attributable to owners of theparent

3.0

2.1

(0.8)

(29.4%)

FY15.3Q(9M)

FY16.3Q(9M)

Ordinary revenues

25.9

25.9

+0.0

+0.2%

Gross operating profit

16.2

15.5

(0.6)

(4.2%)Net interest income

12.3

13.0

+0.7

+6.4%

Net fees and commissions

0.1

(1.1)

(1.2)

－

Net other operating income

3.8

3.5

(0.2)

(6.4%)

General and administrative expenses

11.6

12.4

+0.8

+7.4%

Net operating profit

4.6

3.0

(1.5)

(33.3%)

Ordinary profit

4.6

3.0

(1.5)

(34.1%)Net income

3.0

2.0

(0.9)

(32.0%)

16.3.31

16.12.31

77.4

79.5

+2.1

+2.8%

3.3

4.3

+1.0

+30.9%

2,126.5

2,392.9+266.3+12.5%(Billions of yen)

3.3

<Non-consolidated>(Billions of yen)(Billions of yen)

FY15.3Q (9M)

FY16.3Q (9M)<Consolidated>◆ Ordinary revenues increased due to an increase in interest
income on loans in line with a favorably growing balance ofmortgage loans and an increase in ordinary revenues fromSony Payment Services (Sony Bank’s 57% owned subsidiary),
partially offset by a decrease in interest and dividend income
on securities.
◆ Ordinary profit decreased due to the lower level of interest
rates, an increase in initial expenses led by a higher executionof mortgage loans, and decreased volumes of foreign
currency and investment trust transactions of customers.
<Non-consolidated>◆ Both gross operating profit and net operating profit decreased.
・Net interest income increased due to a rise in interest income
on loans despite a decrease in interest and dividend income
on securities.
・Net fees and commissions decreased due to an increase ininitial expenses led by a higher execution of mortgage loans
and lower volumes of investment trust transactions.
・Net other operating income decreased due to lower fees andcommissions from foreign currency transactions of customers.

Change(Billions of yen)

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

Sony Financial Holdings Inc. All Rights Reserved

ChangeChange from
16.3.3124

Attachment

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)<Reasons for changes>
Change from
16.3.3115.12.31

16.3.31

16.12.31

Customer assets

1,980.5

2,034.4

2,227.3+192.9+9.5%

Deposits

1,866.4

1,923.5

2,117.3+193.8+10.1%

Yen

1,538.5

1,587.9

1,772.1+184.2+11.6%

327.9

335.5

345.1

+9.6

+2.9%

Investment trusts

114.1

110.9

110.0

(0.9)

(0.8%)

Loans outstanding

1,293.6

1,344.1

1,504.4+160.2+11.9%

Mortgage loans

1,181.8

1,237.1

1,409.0+171.8+13.9%

8.0

10.5

17.0

+6.4

+61.6%(18.1)(18.8%)(Billions of yen)

Foreign currency

Card loans

103.6

96.5

78.3

10.50%

9.89%

9.00%

OthersCapital adequacy ratio *2(domestic criteria)*1◆ Yen deposit balance increased due toan increase in yen time deposit
reflecting the special interest offering,as well as a rise in yen ordinary
deposits converted from foreign
currencies backed by yen depreciation.
◆ Yen-denominated balance of foreign
currency deposit increased due to afavorable exchange rate even after thenegative impact of the conversion
from foreign currencies into yen led byyen depreciation.
◆ Loan balance expanded reflecting
higher demand for refinancing
mortgage loans.

(0.89pt)*1 Loans in others include corporate loans of ¥78.3 billion*2 Please refer to the graph of the non-consolidated capital adequacy ratio (Domestic criteria) on P28.

Sony Financial Holdings Inc. All Rights Reserved

25

Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis
FY15.3Q(9M)

FY16.3Q
(9M)

16.1

15.5

(0.6)

(4.2%)

①

13.9

15.0

+1.0

+7.8%

②

0.7

(0.6)

(1.4)

―

Net other operating income

1.4

1.0

(0.3)

(24.3%)

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

14.7

14.4

(0.3)

(2.3%)

Operating expenses and otherexpenses
③

11.6

12.4

+0.8

+7.2%

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

3.1

1.9

(1.1)

(37.6%)(Billions of yen)

Gross operating profit*1

Net interest income

Net fees and commissions*2*3<Reference> Interest Spread(Managerial Accounting Basis)

Change■Managerial accounting basis

Yield on investment

Yield on financing

Interest spread
(%)
1.50

1.20

1.19
1.00

0.93

+0.01pt

0.94

0.50

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

0.26

0.26

FY15.3Q (9M)

FY16.3Q (9M)

*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 consists ofprofits and losses for bond and derivative dealing transactions.
■Core profit

0.00

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

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

Sony Financial Holdings Inc. All Rights Reserved26

Attachment

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

Deposits
Yen deposits

Foreign currency deposits

Mortgage loans(Billions of yen)(Billions of yen)

2,117.3+193.82,000

Others1,878.2
327.2

1,923.5

2,000

345.1

1,504.4

335.5

1,500

1,500

1,344.1
1,187.1+160.2107.0

1,551.0

1,772.1

1,587.9*Corporate loansof ¥78.3 billion
Card loans of¥17.0 billion

1,409.0

112.8

1,000

95.3

1,237.1

1,000
1,074.3

500

500

0

0
15.3.31

16.3.3115.3.31

16.12.31

16.3.31

16.12.31

Sony Financial Holdings Inc. All Rights Reserved

27

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

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

AA
A
Others(%)(Billions of yen)

15
800

730.0
631.1

620.9
600

+10.1

10.65
10

9.00

9.89
(0.89pt)

400

5
200

0
15.3.31

16.3.31

16.12.31

0
15.3.31

16.3.31

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

Sony Financial Holdings Inc. All Rights Reserved28

Attachment

Forecast of Consolidated Financial Results
for the Year Ending March 31, 2017
(FY16)

Sony Financial Holdings Inc. All Rights Reserved

29

Forecast of Consolidated Financial Results for FY16
Forecast of consolidated financial results for FY16 is unchanged from the forecast announced on April 28, 2016
(Billions of yen)

FY15
(Actual)FY16(Forecast)

ChangeFY16.3Q(9M Actual)

Progress rate

Consolidated ordinary revenues

1,362.0

1,450.0+6.5%

1,041.3

71.8%

Life insurance business

1,230.2
96.9
37.9

1,309.8
101.6
37.9

+6.5%
+4.8%
(0.1%)

939.1

71.7%

75.9

74.8%

28.5

75.3%

Consolidated ordinary profit

71.1

71.0

(0.1%)

50.3

70.8%

Life insurance business

60.2
4.6
5.9

62.5
4.4
4.5

+3.8%
(6.0%)(24.9%)

42.3

67.8%

4.9

113.6%

3.3

73.6%

43.3

46.0

+6.1%

33.7

73.3%

Non-life insurance businessBanking business

Non-life insurance businessBanking businessProfit attributable to owners of the parent■Life insurance business
In FY16.3Q (9M), ordinary revenues were below our initial expectations due to a decline in insurance premium revenues
although investment income exceeded our initial expectations. Ordinary profit was nearly in line with our initial forecast.
Therefore, we maintain our full year forecast of ordinary revenues and ordinary profit.
■Non-life insurance business
Ordinary revenues for FY16.3Q (9M) were nearly the same as our initial forecast. Ordinary profit outpaced our initialexpectations due mainly to higher gains on sale of securities recorded in FY16.1Q. As we expect higher expenses related
to new policy acquisitions in FY16.4Q, we maintain our full year forecast of ordinary revenues and ordinary profit.
■Banking businessWe maintain our full year forecast of ordinary revenues and ordinary profit because the operating results in FY16.3Q (9M)were nearly the same as our initial forecast, and we expect this trend to continue in FY16.4Q.
Sony Financial Holdings Inc. All Rights Reserved30

Attachment

Sony Life’s MCEV and ESR
as of December 31, 2016MCEV as of March 31, 2016 is restated by using ultimate forward rates (UFR).
Please keep in mind that the validity of these calculations has not been verified by outside specialists.
A part of the calculations of MCEV adopted simplified method except for that as of March 31, 2016.
*In this part, figures, ratios and percentages changes have been rounded.

Sony Financial Holdings Inc. All Rights Reserved

31Sony Life’s MCEV as of December 31, 2016
16.3.3116.9.30

16.12.31

Change from
16.3.31

Change from
16.9.30

1,330.1

1,229.3

1,282.7(47.4)+53.4

Adjusted net worth

2,074.4

2,187.8

1,831.1(243.3)(356.7)

Value of existing business(744.4)(958.5)(548.4)+196.0+410.1

FY15.4Q

FY16.1Q

FY16.2Q

FY16.3Q

(3M)

(3M)

(3M)

(3M)

(Billions of yen)

MCEV(Billions of yen)

FY16.3Q(9M)

New business value

3.9

(0.2)

5.0

10.2

14.9

New business margin

1.2%(0.0%)

1.6%

4.0%

1.6%

Notes:
1. Calculated MCEV as of September 30, 2016 and December 31, 2016 by using updated economic assumptions and lapse and surrender rate from March 31, 2016.
2. New business value for FY16 is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
New business value for FY15.4Q is calculated accumulating new business value for each quarter based on economic assumptions at the end of each quarter.

 Reasons for changes in MCEV
・MCEV as of December 31, 2016 increased ¥53.4 billion from September 30, 2016 due mainly to a rise in interest rates,
decreased ¥47.4 billion from March 31, 2016 due mainly to a decrease in lapse and surrender rate and a rise in inflation rate
despite a rise in interest rates.
 New business value / New business margin
・New business value for FY16.3Q (3M) was ¥10.2 billion.
New business margin was up 2.5pt from FY16.2Q (3M), due mainly to a rise in interest rates and an effect of premium revisions.
*Please refer to the appendix page 46 for trend on JGB yield.

Sony Financial Holdings Inc. All Rights Reserved

32

Attachment

Sony Life’s ESR as of December 31, 2016
(Billions of yen)

16.3.3116.9.30

16.12.31

Insurance risk*

989.3

1,042.7

980.2

Market-related risk

324.2

341.6

369.5

255.2

264.1

288.5

Operational risk

31.4

31.3

31.1

Counter party risk

2.0

1.9

2.4

Variance effect(374.4)(394.5)(390.4)

The risk amount based on economic value

972.4

1,023.0992.9

Of which, interest rate risk**(* ) Risk amount excluding the variance effect within Life module and Health module.
(**) Risk amount excluding the variance effect within market-related risk.
(Billions of yen)

MCEV + Frictional costs
ESR

16.3.3116.9.30

16.12.31

1,366.5

1,266.2

1,325.5

141%

124%

134%

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Life’s risks comprehensively examined by a market consistent approach,including insurance risk and market-related risk.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model, which is a similar
but modified model based on the EU Solvency II standard method.
3. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
◆ ESR as of December 31, 2016 was up 10pt from September 30, 2016 due mainly to a rise in interest rates and new business value accumulated during FY16.3Q.
◆ Sony Life will continue to improve ESR levels by accumulating new business value through reinforcing its sales capabilities as well as ensuring profitability.

Sony Financial Holdings Inc. All Rights Reserved33

Attachment

AppendixSony Financial Holdings Inc. All Rights Reserved

34

Recent Topics 1
AEGON Sony Life Insurance
Launch of sales: December 1, 2009
Common stock: ¥14 billion
Equity ownership: Sony Life insurance Co Ltd 50%, AEGON international B.V. 50%
Marketing products: Individual Variable Annuities
Sales Channels: Lifeplanner sales employees and partner Banks (30*) *As of Feb 14, 2017

SA Reinsurance Ltd
Established： October 29, 2009
Common stock: ¥13.4 billion
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Business： Reinsurance business*AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint ventures established by Sony Life and AEGON Group.

Sony Bank’s Mortgage Loans through Sony Life
■Sony Life accounts for 21% of the balance of mortgage loans as of December 31, 2016
Sony Life accounts for 21% of the amount of new mortgage loans for FY16.3Q (9M)*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
■Sony Life accounts for approx. 4% of new automobile policies for FY16.3Q (9M)*Sony Life started handling automobile insurance in May 2001.

Sony Financial Holdings Inc. All Rights Reserved35

Attachment

Recent Topics 2<Highlights on and after FY16.3Q>
2016-10-01

Sony Life commenced sale of new product: “Non-participating Group Welfare Term Life Insurance”

2016-10-03

Sony Life adopted paperless insurance procedures for its policyholders

2016-10-25

Sony Life acquired an entity stake in ClearView Wealth Limited (Australia) and announced business alliance2016-10-31

Sony Bank began offering U.S. dollar-denominated active funds on investment trusts and revised the service site

2016-11-01

Sony Lifecare Group started advertisement for residents for a newly build nursing care home “SONARE URAWA”, scheduled toopen in May 20172016-11-07

Sony Bank began offering foreign currency settlement services for teenage customers

2016-11-14

Sony Life introduced a new system to quickly pay insurance claims and benefits

2016-12-01

Sony Assurance began offering new discounted premiums for new customers who contracted automobile insurance via
Internet (increased discount rate from ¥8,000 to ¥10,000)

2017-01-04

Sony Bank began offering new preferential services called “Club S”

2017-01-04

Sony Life enhanced its investment product lineups for defined contribution pension plan (individual-type)2017-01-10

Sony Assurance commenced sale of new product: “ZiPPi” medical insurance to indemnify hospital inpatient expenses
and revised “SURE” medical and cancer insurance

2017-02-01

Sony Assurance and Yahoo! JAPAN announced to begin joint research with a view to developing telematics insurance
products and services for individuals using driving behavior data from car navigation systems

Sony Financial Holdings Inc. All Rights Reserved

36Sony Life’s Product Revisions
 FY16 Product Revisions(Sales suspension)
May: Single premium whole life insurance (non-notification type), Semi-participating
individual annuities, Semi-participating endowment insurance (short-term payment),and Non-participating endowment insurance (short-term payment)
Jul.: Single premium semi-participating whole life nursing-care insurance
Oct.: Interest rate-sensitive whole life insurance(Premium revisions)Apr.: Single premium whole life insurance (non-notification type)
Jul.: Semi-participating endowment insurance, Non-participating endowment insurance
Oct.: Variable life insurance (whole life type), Limited payment whole life insurance,
Living benefit whole life insurance (living standard type), Living benefit insurance(whole life type), Whole life nursing-care insurance (reduced surrender value),
Semi-participating whole life nursing-care insurance, Specialty endowment insurance,
Whole-life cancer insurance

 FY17 Premium Revisions (plan)
Apr.: Long-term level premium plan term life insurance (with disability benefit),
Cancer hospitalization insurance and other products
Sony Financial Holdings Inc. All Rights Reserved37

Attachment

Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)

Notes:
1. The above table includes monetary trusts other than trading-purpose securities.
2. Derivative financial products such as principal protected 30 year notes with Nikkei 225 index-linked coupons are included in the “Held-to-maturity-securities” above.
Principal protected 30 year notes with Nikkei 225 index-linked coupons
As of Mar. 31, 2015; Carrying amount: ¥44.2 billion, Fair market value: ¥57.5 billion, Net unrealized gain (losses): ¥13.2 billion
As of Mar. 31, 2016; Carrying amount: None
As of Dec. 31, 2016; Carrying amount: None
(Billions of yen)
Valuation gains (losses) on trading-purpose securities

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

Sony Financial Holdings Inc. All Rights Reserved

38Sony Life’s Interest Income and Dividends (Details)(Millions of yen)

FY15.3Q (9M)

FY16.3Q (9M)

ChangeCash and deposits
Japanese governmentand corporate bonds
Japanese stocks

00+166.1%85,90790,445

+5.3%

356

345

(3.0%)

Foreign securities

5,653

6,017

+6.4%

Other securities

1,260

177

(85.9%)

Loans

4,616

4,784

+3.6%

Real estate

7,681

8,148

+6.1%

47

144

+202.0%105,524

110,064+4.3%

Others
Total

Sony Financial Holdings Inc. All Rights Reserved39

Attachment

Sony Life’s Capital Gains/Losses(Millions of yen)

FY15.3Q (9M)

Capital gains

FY16.3Q (9M)

19,762

25,628

Income from monetary trusts, net

7,119

―

Income from trading securities, net―

103

Gains on sale of securities

12,193

1,306

Gains on derivatives, net――

Foreign exchange gains, net

435

24,218

(64)

2,375

Gains (losses) on sale of foreign bonds
Other capital gains
Capital losses

13

―

758

39,882Losses on monetary trusts, net――

Losses on trading securities, net

143―

Losses on sale of securities――

Devaluation losses on securities――

Losses on derivatives, net

515

34,275Losses on hedges of variable life insurance

699

14,292Losses on hedges of available-for-sale securities

―

2,265

Foreign exchange losses, net――

Other capital losses

99

5,606

Net capital gains (losses)

19,003(14,253)◆ In FY16.3Q (9M),
recorded ¥3,681 million
as a total of gains onsale of securities andforeign exchange gains
on sale of foreign
bonds.

Notes:
1. Foreign exchange gains, net for FY16.3Q (9M) include foreign exchange gains of ¥21,805 million relating to U.S. dollar-denominated insurance. Losses on derivatives, net include foreignexchange losses relating to U.S. dollar-denominated insurance of ¥ 17,445 million. Moreover, other capital losses include the provision of policy reserves for U.S. dollar-denominatedinsurance of ¥4,941 million relating to foreign exchange fluctuation.
2. Foreign exchange gains, net for FY15.3Q (9M) include foreign exchange gains of ¥19 million relating to U.S. dollar-denominated insurance. Moreover, other capital gains include the reversalof policy reserves for U.S. dollar-denominated insurance of ¥13 million relating to foreign exchange fluctuation.
3. The figures of income (losses) from monetary trust, net, income (losses) from trading securities, net, gains (losses) on derivatives and foreign exchange gains (losses), net were recorded after
offsetting gains and losses of each item.

Sony Financial Holdings Inc. All Rights Reserved

40Sony Life’s Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Billions of yen)

1,491.6

1,500

1,437.4
1,324.2

1,250
1,000

1,152.5

1,135.8

1,290.7

1,260.0
1,098.9

991.5

11,8901,050.7

750
500
250
0
FY14.1Q FY14.2Q FY14.3Q FY14.4Q FY15.1Q FY15.2Q FY15.3Q FY15.4Q FY16.1Q FY16.2Q FY16.3Q

Sony Financial Holdings Inc. All Rights Reserved

41

Attachment

Sony Life’s Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector(Billions of yen)

25

20

18.9

22.7

22.3

21.8

20.6

20.5
19.1

18.5

17.2

18.2
15.3

15

10

5

5.1
3.7

3.9

3.5

2.8

4.6

3.4

4.1

3.6

3.9

3.1

0
FY14.1Q FY14.2Q FY14.3Q FY14.4Q FY15.1Q FY15.2Q FY15.3Q FY15.4Q FY16.1Q FY16.2Q FY16.3Q

Sony Financial Holdings Inc. All Rights Reserved

42

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

Number and Amount of Policies in Force

Number and Amount of New Policies
New policy amount

Number of new polices [ ]

100

20

80

16
53.2
[8.9]

60

600

24

107.5
[18.1]

53.3[10.5]

Number of policies in force [ ](Billions of yen)(Thousands ofpolicies)(Billions of yen)120

Policy amount in force

500

430.4
[70.8]

444.2[73.4]

489.1[82.7]

80

60

400
300

12

(Thousands ofpolicies)

40

200

40

8

20

4

100

0

0

20

0
FY14.3Q (9M)

FY15.3Q (9M)

FY15.3Q(9M)

FY16.3Q(9M)

ChangeAEGON Sony Life Insurance

(1.5)

(3.1)

(1.6)

SA Reinsurance

0.8

(2.7)

(3.6)

(Billions of yen)0
15.12.31

FY16.3Q (9M)

16.3.31

16.12.31

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

Sony Financial Holdings Inc. All Rights Reserved

43

Attachment

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

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

Sony Life(Reference) EU Solvency II Implementing
Measures (Delegated Regulation)

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

Different percentage changes in interest rates areset for each term, from one year to 20 years.
For terms longer than 20 years and through 90
years, percentage changes are set using linear
interpolation, with negative 29% as the percentagechange for 20 years and negative 20% as thepercentage change for 90 years.

(Example)
For Yen 30-year, 33% decrease (parallel shift),
28% decrease (twist), 8% decrease (butterfly)

Equity risk

Listed equities 45%, Other securities 70%

Global 39%, Others 49%*2

Real estate risk

Actual real estate 25%

Same as on the left

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

Credit risk = (market value) x (risk coefficient foreach credit rating and duration)

Credit risk

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

Currency risk

(Example)
Rating A: Duration (Dur): 5-10 years(Example)
Rating A: Risk coefficient (1.4%), cap (23), floor (1)Risk coefficient=7.0% + 0.7% x (Dur – 5 )35% downside fluctuation

25% downside fluctuation

Notes
1. Principal items as of December 31, 2016.
2. Symmetric adjustment (an adjustment of±10% of the average value of the stock price index during a defined period in the past) is applied.

Sony Financial Holdings Inc. All Rights Reserved

44

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

Sony Life(Reference) EU Solvency II Implementing
Measures (Delegated Regulation)

Mortality risk

Mortality rate increases by 15% for each year elapsed Same as on the leftLongevity risk

Mortality rate decreases by 20% for each year
elapsed

Lapse risk

The largest amount of these; *2

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

Same as on the left

lapsation for Life module, 50% for Health module•Decreases by 50% in the assumed rates oflapsation for Life module, 50% for Health module• 40% of policies (70% for group annuities, etc.) on

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

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

Same as on the left

Disability risk

Rate of occurrence increases by 35% in the first fiscal Rate of occurrence increases by 35% in the firstyear, rising by 25% for each year thereafter
fiscal year, rising by 25% for each year thereafter.
Recovery rate decreases by 20%.

Notes
1. Principal items as of December 31, 2016.
2. At Sony Life, lapse risk is calculated by computing and adding together the largest amount of three options for each insurance policy

Sony Financial Holdings Inc. All Rights Reserved45

Attachment

Trend on JGB Yields (Par rate)

As of the end of each monthSony Financial Holdings Inc. All Rights Reserved

46

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

Convergence
period: 20 year

Last liquid point: 40 year

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

Sony Financial Holdings Inc. All Rights Reserved

47

Attachment

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

Sony Financial Holdings Inc. All Rights Reserved

48