Consolidated Financial Results for the Fiscal2019
Conference Call for Institutional Investors and Analysts Q&A (Executive Summary)

Date: May 19, 2020 5:30–6:15 p.m. (JST)Respondents:
Hiroaki Kiyomiya, Managing Director, Member of the Board, Sony Financial Holdings, Inc.
Eigo Nasu, Executive Officer, Sony Life Insurance Co., Ltd.
Toru Hasegawa, Executive Officer, Sony Assurance Inc.
Yukio Hayashi, Executive Officer, Sony Bank Inc.

Note: The questions and answers have been paraphrased, edited, and sorted for ease of understanding.

Q1: [Sony Life] How is the COVID-19 pandemic affecting the current new policy amount andthe hiring of Lifeplanner sales employees? What future developments do you anticipate?
A: The new policy amount for April 2020 was at around 75% of the April 2019 level. We expect thenew policy amount in May to be even lower than for April, as we have closed all branches from midApril through May 31 and have suspended face-to-face sales activities. Going forward, we plan toresume face-to-face sales activities gradually, monitoring how economic activity recommences.
Hiring of Lifeplanner sales employees was not down substantially in April, but currently we arerefraining from face-to-face recruiting activities. Going forward, we plan to conduct online
interviews and maintain our hiring emphasis on quality.
As non-face-to-face sales activities, we are currently responding to existing policyholders. We areconsulting over the telephone, sending applications via the post, and we have begun providing online
consultation using conferencing systems. We plan to further step up these activities by leveragingtechnology.

Q2: [Sony Life] Partly due to the impact of COVID-19, the use of non-face-to-face channels
may be unavoidable going forward. Do you aim to bring life insurance fully online?
A: We are not thinking of moving life insurance fully online. We will support the efforts ofLifeplanner sales employees by enhancing non-face-to-face solicitation activities.

Q3: [Sony Life] With U.S. dollar interest rates falling, what are your thoughts on the U.S.
dollar-denominated single-premium whole life insurance that was sold in large quantities?
A: We suspended sales of U.S. dollar-denominated single-premium whole life insurance in April
2020. Demand rose in Q4 of FY2019 (3M), but as we are hedging in anticipation of future newpolicy acquisition, to some extent we are able to restrain the impact of a decline in U.S. dollar
interest rates. We will continue to closely manage earnings.
1Q4: [Sony Life] Why was the overall risk amount up compared with Q3?
A: There were two main reasons. First, we revised our method of assessing interest rate risk. Second,U.S. dollar interest rates fell significantly, so insurance risk rose. Each of these factors wasresponsible for around half of the increase.
With regard to the first factor (revising our method of assessing interest rate risk), we revised ourassessment method, which held that when ultralong-term yen interest rates are at a level near zero
the risk of yen interest rates falling was small. We changed the assessment method to take into
account the possibility of interest rates becoming more negative.

Q5: [Sony Life] I understand that your performance forecast for FY2020 is “undetermined,”
but will you accumulate a contingency reserve in relation to the absorption-type merger ofSony Life With Insurance?
A: The absorption-type merger of Sony Life With Insurance is slated for April 2021. In FY2021, weexpect to set aside a lump sum of around ¥30 billion as a contingency reserve.

Q6: [SFH] Did you disclose your thoughts on consolidated Group ESR because you had begun
to see your way to curtailing ESR volatility?
A: Sony Life has been working to reduce interest rate risk for some time. Going forward, we willcontinue working to control changes in ESR to some extent through efforts to lower interest raterisk.

Q7: [SFH] Does the level of consolidated Group ESR you are targeting for the foreseeable
future not indicate a certain level of specificity as a listed company? By becoming a whollyowned Sony subsidiary, won’t your ESR level decrease and the cost of capital rise?
A: Our current disclosure is based on our current thinking. We plan to maintain this thinking for theforeseeable future.

Q8: [Sony Life] At Sony’s corporate strategy meeting today, mention was made of “engagingin measures to further enhance the value of Lifeplanner sales employees.” Do these specificinitiatives refer to products, solicitation and sales, or revisions in the compensation system for
Lifeplanner sales employees? Also, how is progress?
A: For Lifeplanner sales employees, we are stepping efforts in terms of the quality of consultingbased sales and consulting-based follow-up activities. At the same time, we plan to leverage theSony Group’s technologies and enhance our collaboration in other ways.
We are revising the compensation system as appropriate, but we have no response at this time.

2Q9: [Sony Life] By becoming a wholly owned subsidiary of Sony, do you plan to diversify Sony
Life’s channels?
A: First, as measures to counter COVID-19 we will concentrate on stepping up non-face-to-facesales activities. Based on how such factors as how customer behavior changes, we will leveragetechnology and consider how to strengthen the Lifeplanner channel.

Q10: [SFH] What competitive advantages will becoming a wholly owned Sony subsidiaryconfer?
A: The Sony Group is involved in a wide range of businesses. By strengthening relations with Group
companies, we aim to promote further ties, including by leveraging technology.

Q11: [SFH] I believe you have been strengthening ties with Sony for the past few years. Whatspecific synergies did you see? What additional synergies do you expect to reap by becoming awholly owned subsidiary of Sony?
A: To date, we have cooperated with the Sony Group in such areas as big data analytics andleveraging AI. We are seeing some results, including Sony Assurance’s “GOOD DRIVE”, PHYD
automobile insurance leveraging AI and on the technology front with Sony Life and Sony Bank.
Over the past year or two, the financial team has also participated as a Group member in Sony’stechnology exhibitions. We have begun looking at ways the financial business can take advantage ofSony’s technologies.
By becoming a wholly owned subsidiary of Sony, we expect to collaborate over a broader range oftechnologies, also in businesses other than electronics. By accelerating decision-making, we believe
we can further enhance ties within the Sony Group. Although we are unable to mention specifics at
this time, we believe that we can strengthen collaboration even more than in the past.

Q12: [SFH] As a listed financial company, to date you have had to disclose operating
performance on a quarterly basis, which may have encouraged a short-term perspective. By
becoming a wholly owned subsidiary of Sony, will it become easier to make R&D investmentsfrom a medium- to long-term perspective?
A: Life insurance has a long insurance period, making it necessary to take a long-term perspective
on investing. By integrating our management within the Sony Group, we think we may be able toinvest from an even longer-term perspective than in the past.

Q13: [SFH] Wasn’t losing access to capital markets a negative consideration? Is there anypossibility you might relist in the future?
A: The financial business was listed in 2007 because capital was needed to foster growth. Looking at
the current conditions, however, we believe being a part of the Sony Group offers synergies that will3

enable management from more of a long-term perspective. Having compared the two, we believethat becoming a wholly owned subsidiary of Sony will better enhance business value over themedium to long term. At present, we cannot speak to the future.

Q14: [SFH] Was the tender offer price calculation based on U.S. GAAP?
A: The price was based on Japanese GAAP, with MCEV and appraisal value also taken into
consideration.

Q15: [SFH] Doesn’t the tender offer price of ¥2,600 seem low?
A: To ensure the fairness of this tender offer and from the perspective of securing profits for thegeneral shareholders, we established a special committee consisting of independent outside directors
to duly deliberate and consider the matter. Multiple analytical methods were used to calculate theprice, further ensuring its appropriateness. We obtained fairness opinions about the price of ¥2,600
from Plutus Consulting, which advised the special committee, and Mitsubishi UFJ Morgan Stanley
Securities, our financial advisor. On this basis, the Board of Directors approved the offer andresolved to recommend its adoption.

Q16: [SFH] As a listed company, you focused on economic value. After becoming a wholly
owned subsidiary of Sony, will you shift to U.S. GAAP?
A: At present, the financial business is planning to continue focusing on economic value.
Management behavior may take U.S. GAAP into consideration, but this has not yet been decided.

Q17: [Sony Life] U.S. GAAP is significantly affected by market fluctuations. As you are
currently hedging on the basis of economic value, I believe you would be over-hedged on thebasis of U.S. GAAP. When you become a wholly owned subsidiary of Sony, is it possible you
will change your hedging policy?
A: Fundamentally, we review our hedging position and policy each quarter. In principle, we conduct
hedges on the basis of economic value, but it is technically possible to change our hedge position tocontrol profits under U.S. GAAP. We have not yet decided what we will do in the future.

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