Message from the CEO
We will work Group-wide to create new value,
aiming to build a society in which people feel
uniquely enriched

President & CEO, Representative Director

Copyright © Sony Financial Group Inc. All rights reserved.

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I wish to start by expressing our deepest appreciation to all of our stakeholders for your continued supportand interest.
I would also like to offer my sincere condolences to those victimized by Russia’s military action in Ukraine,and my sympathies to all who have been affected by this disaster. I deeply hope the crisis is resolved assoon as possible and that peace will be restored to Ukraine and the world.

Introduction
Sony Financial Group (SFG) consists mainly of life insurance, non-life insurance, and banking businesses.
Our strengths include the ability to stay close to people, symbolized by the extensive customer contacts
and relations of Sony Life’s Lifeplanner sales specialists, and the power of technology to leverage the technological capabilities of Sony Assurance and Sony Bank – which lead the direct and online financial services
markets – as well as those of the Sony Group.
By combining our ability to stay close to people and our power of technology, SFG helps each and every
customer achieve their dreams and peace of mind over a lifetime.

Progress of the Mid-Range Plan
Last year, SFG initiated a new Mid-Range Plan, the key principle of which is to “maximize corporate value
through self-transformation.” To strengthen the management capabilities of the Group as a whole, and achieve
profitable and sustainable growth, we have established five strategic pillars: strengthen core/unique competitive advantages; alter profit structure to withstand low interest rates; further evolve customer-centric management; strengthen competitive edge through technology; and maximize Group synergies. Along with thesepillars, we have added two priorities – namely, the principles of advancing sustainability and thoroughly enhancing Group governance – and are pursuing them under the leadership of the holding company.
The Mid-Range Plan is generally progressing well, and business is steadily expanding. The main areas ofprogress are as follows.
To begin with, I will cover how we are working to strengthen our core/unique competitive advantages. To
reinforce our business model based on Sony Life’s Lifeplanner sales specialists, a core asset of SFG, we areworking to expand their roster with increased productivity and quality in mind.
Last fiscal year, we faced a difficult environment that continued to be affected by the COVID-19 pandemic, but in general, we were able to steadily produce results in sales by leveraging the strengths of SFG.
Sony Life posted its highest new policy amount and annualized premiums from new policies on record,
an achievement in which the results of corporate sales, designated as a focus area in the Mid-Range Plan,
played a major role. Sony Assurance maintained its leading share in the direct market for its core business,
automobile insurance, and saw continuing steady growth in direct premiums written due to increases in newcontracts and policyholder retention rates. Sony Bank did just as well, steadily increasing its mainstay ofmortgage loans, and growing to the level of leading regional banks in terms of mortgage loan balance.
Rather than blindly pursuing scale expansion, Sony Life, Sony Assurance, and Sony Bank have been
growing by focusing on quality and maintaining high levels of customer satisfaction for years. In customer
satisfaction surveys by external research organizations, the companies received high evaluations last fiscal
year, as they have in the past. Going forward, we will focus on unlocking the full potential of our Lifeplanner
sales specialists, a core asset of SFG, and further evolving customer-centric management through thefull-scale introduction of NPS®* as a valuable indicator for measuring customer loyalty.
* NPS® (Net Promoter Score) is a registered trademark of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld

Copyright © Sony Financial Group Inc. All rights reserved.

2To further grow profit, it is important to alter our profit structure so it can withstand the effects of low
interest rates. To that end, in our Mid-Range Plan we have set out initiatives to improve the product mix,
reduce interest-rate risk and our expense ratio, and enhance asset management revenue.
We are optimizing product mix by lowering the ratio of whole-life insurance in new policies to steadily
reduce interest risk, responding to corporate needs, and providing new variable products. We have set ourexpense ratio target both higher and earlier than the Mid-Range Plan originally set forth. As for asset management, we will expand investment asset classes and enhance the current management system to achievea certain level of investment yield even if low interest rates continue.
In our efforts to strengthen our competitive edge through technology, there are cases where we havealready shown achievement in this regard. Sony Life has begun to support Lifeplanner sales specialists withAI and a new consulting system. Sony Assurance is providing the GOOD DRIVE smartphone app, whichmeasures driving characteristics based on driving data, while utilizing the Sony Group’s deep learning technologies for marketing. Sony Bank has introduced a high-quality remote consulting system utilizing the Sony
Group’s technology.
Meanwhile, Sony Financial Group Inc. (SFGI), the holding company, established a specialized organization
called the Advanced Technology Lab last year. It collaborates with the Sony Group’s R&D divisions andSony Financial Ventures, which aims to find start-ups, in order to strengthen the acquisition of knowledge
and technology both from within the Group and from external companies. In the fields of AI and machinelearning, health care, and sensing, we seek new technologies and share financial knowledge with others
over the longer term to create new value. Specifically, we are working on initiatives to train AI planners andexploring areas like healthcare services for the era of the 100-year lifespan.
As for our efforts to maximize Group synergies, we are working to offer total services that transcend theorganizational borders between SFG companies. In FY2021, Sony Assurance and Sony Bank have again
reported substantial year-on-year growth in sales through Lifeplanner sales specialists. Going forward, weplan to increase referrals from Sony Assurance and Sony Bank to Sony Life, and expand opportunities forGroup-wide cross-selling. In the future, we will also work to create new customer experiences through theuse of Sony Group assets.

Advance Sustainability and Thoroughly Enhance Group Governance
We are focusing on the advancement of sustainability and thorough enhancement of Group governance tohelp develop a sustainable society and fulfill our social responsibility as a member of the Sony Group.
To advance sustainability, we are working on initiatives to reduce greenhouse gas (GHG) emissions inresponse to climate change, execute investment based on the ESG investment policy, improve accessibility,
promote active participation by women, and support continued employment. To make sure we follow throughon all these initiatives, we have committed to manage KPIs by setting clear quantitative targets, and toreflect the results in executive evaluation and remuneration.
Regarding Group governance, as CEO of the holding company overseeing the financial services group, Iwould like to once again sincerely apologize to our customers and all related parties for any concern resulting from the financial misconduct at a foreign subsidiary of Sony Life. We take this event seriously, and tofollow through on Group action to prevent recurrence of similar issues we are enhancing the holding company’s role and becoming more deeply involved in internal control of SFG companies.
Specifically, we introduced a new framework to continue checking the appropriateness of fund disbursement, which was the direct issue in the aforementioned incident. Furthermore, we strengthened the audit
system of the holding company, which is the key defense function in management concerning internalcontrol. In addition, we will work to ensure further compliance and foster risk awareness from the standpointof organizational climate.

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Direction of Mid- to Long-term Growth Strategy of the Sony Financial Group
Under the current Mid-Range Plan, we have positioned Lifeplanner sales specialists as the platform forcarrying Group strategy forward, and are deepening our relationship with family customers, offering total lifeplanning for the era of the 100-year lifespan, and enhancing Group synergy to better respond to customer
needs. In addition, we are working to continue expanding our customer base and touchpoints over thelonger term.
Specifically, we would like to strengthen contact points and relationships with small and medium-sized
firms, youth, seniors and loyal Sony Group customers by utilizing comprehensive DX to provide more value
to our customers, leveraging Sony Group technologies, and improving inter-company collaboration, as well
as by formulating alliance strategies that include non-financial domains.
We will continue to refine the unique value we provide to our customers as the Sony Group’s financial
services business, and maximize customer lifetime value.

Conclusion
The surrounding environment is growing more uncertain due to factors such as the COVID-19 pandemic,
the situation with Russia and Ukraine, and significant fluctuation of financial and foreign exchange markets
caused by the rise in US interest rates. Now is the time to return to the SFG vision, “to be a financial groupthat helps each and every person achieve their dreams and peace of mind, by staying close to people andusing the power of technology to build a society in which people feel uniquely enriched,” and the SFG values,
consisting of Customer Focus, Originality, Dreams & Curiosity, Diversity, Integrity & Sincerity, and Sustainability, in order to contribute to the realization of a sustainable society. The businesses operated by SFG
span a variety of activities and business models, but each shares the common characteristics of providing
products and services with high added value that meet the needs of each and every customer and utilize
the power of technology. We aim to build a society in which people feel uniquely enriched, working Groupwide to create values such as facilitating safety and peace of mind, contributing to society by supporting
public health and longevity, and bringing more convenience to life.
My sincere appreciation for your continuing support.

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FY2021-2023 Sony Financial Group

Progress of the Mid-Range Plan
SFG’s Mid-Range Plan, started in FY2021, follows the key principle of “maximizing corporate value
through self-transformation,” and establishes five strategic pillars aimed at realizing this objective. We
aim to achieve profitable and sustainable growth by pursuing customer-centric management and courageously changing ourselves rather than conforming to past experiences of success.

Overview of SFG Mid-Range Plan
SFG has always pursued a different business model than conventional financial institutions, and has provided products andservices with high added value by meeting the needs of each and every customer.
SFG’s unique strengths are the ability to stay close to people, the power of technology, a corporate culture that follows
through on its commitments to customer focus, and originality. By refining these strengths, we will maximize the value
provided to customers and also contribute to the growth of corporate value of the Sony Group as a whole.

Key Principle

Maximize Corporate Value through Self-Transformation
Strengthen Group Capabilities, Achieve Profitable & Sustainable Growth

SFG’s Five Strategic Pillars for Realizing Key Principle
123
45

Strengthen core/unique competitive advantages
Alter profit structure to withstand low interest rates
Further evolve customer-centric managementStrengthen competitive edge through technology
Maximize Group synergies
Added as Priority Measures

Advance sustainability

Thoroughly enhance Group governanceUnlocking the Full Potential of Our Core Asset: Lifeplanner Sales Specialists
The strategic axis in the Mid-Range Plan is centered on unlocking the full potential of our Lifeplanner sales specialists andfurther improving productivity.
While we have already achieved positive results, such as
growth of our corporate business, we will work to improve theoverall skills of Lifeplanner sales specialists by making the methods of high performers standard practices. We will also strengthen scientific sales support utilizing data analytics and AI, andfurther improve the value of customer offerings tailored to eachand every customer. Furthermore, we will improve and strengthen sales methods through full introduction of NPS® to makequantitative assessments of customer relations.

Raise overall
quality ofLifeplannersales
specialists

Developoptimized,
data-driven
solutions forcustomers

Evolvecustomerfocusedbusiness usingNPS®

* NPS® (Net Promoter Score) is a registered trademark of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld

Copyright © Sony Financial Group Inc. All rights reserved.

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Strengthen Competitive Edge through TechnologyAchievements so Far
Technology is one of SFG’s strengths, and one that will be further enhanced through becoming a wholly-owned subsidiary ofSony Group Corporation. To date, we have already begun to produce results, such as Sony Life supporting our Lifeplanner
sales specialists with a new consulting system, and using AI to automatically create proposals and provide information; SonyAssurance offering a Safe Driving Cash Back Plan to refund portions of premiums to policyholders depending on personalsafe-driving scores, while utilizing the Sony Group’s deep learning technology for marketing; and Sony Bank creating ahigh-quality remote consulting system that lets customers feel a sense of sharing the same space.

Utilize technology to reinforce
Lifeplanner sales specialists

Data-driven insurance offeringsand marketing

Evolve remote consultation
through telepresence

Safe Driving Cash Back Plan

Strengthen Competitive Edge
In order to further accelerate enhancing our competitiveness through technology, we will continue to endeavor to acquireknowledge and technology from both within the Group and external companies, and also explore cutting-edge technology
from a medium- to long-term perspective via the Advanced Technology Lab.
Needs andopportunities
R&D divisions

Knowledge andtechnology
Advanced Technology Lab

Technology

Investment, etc.

Outsidecompanies,etc.

AI & Machine Learning, Health Care, Sensing Technology

Maximize Group Synergies: Utilize Data to Improve Value Provided to Customers
We strive to increase synergies as a financialgroup and will work to further offer total services
that transcend the organizational borders between SFG companies.
We are undertaking an initiative to build a basefor intra-SFG sharing of data, whether acquiredin person by Lifeplanner sales specialists orelectronically through online customer portals ofGroup companies, and aim to commence
sharing and use of the platform in FY2023.
Furthermore, to further accelerate initiatives
aimed at improving the value provided to customers, we will strengthen mutual referral ofcustomers and cross-selling within
the Group, while aiming to create newvalue unique to the Sony Group in future.

Mutual customer referrals within SFG
Build base for intra-SFG data-sharing

Lifeplanner sales
specialists

Create new value uniqueto Sony GroupUse of digitaltechnology

SFG data-sharing
base

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Direction of Longer-term Growth Strategy
Under the current Mid-Range Plan, we are further deepening our relationship with family customers, offering total life planningfor the era of the 100-year lifespan, and enhancing Group synergy to better respond to customer needs.
In the medium- to long-term, we will work to further enlarge our customer base while expanding and further exploitingtouchpoints by utilizing comprehensive DX to provide more value to our customers, Sony Group technologies and improved
inter-company collaboration, and by formulating alliance strategies that include non-financial domains.

Small/medium-sized firms

Core Customers
FamiliesLeverage DX to provide customerfocused value

Apply full potential of
Lifeplanner sales specialists

Use Sony Group technology &enhance inter-company
collaboration

Enhance synergy among
Sony Life, Sony Assurance& Sony Bank

Youth,
seniors, etc.

 ormulate alliance strategies,Fincluding non-financial domains

Etc.

Sony Groupcustomers, etc.

Refine value unique to Sony Group Financial Businessand maximize customer lifetime value
Financial Management Targets for Mid-Range Plan
We are making steady progress toward the numerical targets set in the Mid-Range Plan, with the aim of achieving thosetargets in FY2023. With the exception of temporary factors, financial services revenue and operating income are both expected to increase steadily in FY2022.
The management targets in the SFG Mid-Range Plan are set based on International Financial Reporting Standards (IFRS)
applied to Sony Group Corporation, which is SFGI’s parent company. SFG plans to adopt the new IFRS17 accounting standard
regarding insurance contracts in FY2023. If a review of financial management targets is needed as a result of clearly ascertaining the impact of application of IFRS 17 (Insurance Contracts), we will announce that in a timely and appropriate manner.

Financial Services Revenue(IFRS)(¥billion)

Approx. +5 %*1

1,674.0

1,533.8(¥billion)

Operating Income(IFRS)

Operating Income*3 (IFRS)Approx. +7 %*2

CAGR:

220

1,440154.8

FY205

FY23+ % or higher

150.1ROE*3 (IFRS)(FY23~)

8% or higher
FY20

FY21FY22 (E)FY20

FY21FY22 (E)*1 CAGR excluding special account investment revenue and FY2022 gain on sale of real estate (gray)*2	CAGR excluding FY2022 gain on sale of real estate and recovery of funds related to unauthorized withdrawal (gray)*3 IFRS 17 (insurance contracts) will be applied in FY2023

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