Content

During the nine months ended December 31, 2013, consolidated ordinary revenues grew
20 2% compared
20.2%
d withith th
the same periodi d off th
the previousifi
fiscall year, tot ¥1,047.3¥1 047 3 billi
billion,owing to increases in ordinary revenues from all businesses: life insurance, non-life
insurance and banking.
Consolidated ordinary profit increased 11.0% year on year, to ¥61.5 billion, owing toincreases in ordinary revenues from all the businesses.
p 7.8% yyear on yyear,, to ¥35.3 billion.
Consolidated net income was up

Here is highlights of consolidated operating performance.

Highlights of Sony Life’s operating performance (non-consolidated basis) are shown
here.
Sony Life’s ordinary revenues increased 21.8% year on year, to ¥955.2 billion. Of thisamount, income from insurance premiums grew 12.4% from the same period of theprevious fiscal year, to ¥738.7 billion, due to an increase in the sale of lump-sum
payment endowment insurance and steady growth in policy amount in force.
Investment income increased 74.9% year on year, to ¥194.8 billion, due mainly to higher
gains on separate accounts
accounts, net resulting from the market recovery
recovery.
Ordinary profit increased 3.6% year on year, to ¥54.7 billion. This is because of anincrease in the positive spread and a reversal of policy reserves for minimum
guarantees for variable life insurance, despite the negative impact from an increase inprovision of policy reserves resulting from the revision of discount rate used for
calculating policy reserves.

Here is an overview Sony Life’s performance (non-consolidated basis).

(Left-hand graph)
NNew
policyli amountt ffor th
the ttotalt l off individual
i di id l lif
life iinsurance andd iindividual
di id l annuities
iti ffor th
thenine months ended December 31, 2013 (FY13.3Q) decreased 6.6% year on year, to¥3,003.1 billion, due to the revision of insurance premium rates. By product type, sales offamily income insurance and interest rate-sensitive whole life insurance decreased while
sale of lump-sum payment endowment increased.
The number of new policies decreased 5.5% year on year, to 415 thousand policies.
(Right-hand(Riht h d graph)h)
As for your reference, we show you an impact of the strong last-minute demand led by
the revision of insurance premium rates in April 2013.

(Left-hand graph)AAnnualized
li d premiumsiffrom new policies
li i ffor ththe nine
i months
th endedd dDDecemberb 3131, 2013
(FY13.3Q) decreased 4.8% year on year, to ¥48.7 billion due to lower sales of
educational endowment insurance and interest rate-sensitive whole life insurance
despite higher sales of lump-sum payment endowment insurance. Of which, the figure
for third-sector insurance products was down 19.7% year on year, to ¥10.5 billion due toa decrease in sale of lump-sum payment whole life nursing-care insurance.
( g(Right-handgraph)
gp )As for your reference, we show you an impact of the strong last-minute demand led by
the revision of insurance premium rates in April 2013.

Sony Life’s policy amount in force which reflects new policy amount and lapse andsurrenderd amount,t isi shownhhhere.
(Left-hand graph)
Policy amount in force for the total of individual life insurance and individual annuities
increased 4.5% year on year, to 38.8 trillion due to an increase in new policies and adecline in lapse and surrender rate. The number of policies in force increased 5.9% year
on year, to ¥6.27 million policies.
(Right-hand graph)
Annualized premiums from insurance in force increased 5.0% year on year, to ¥690.8billion. Of this amount, the figure for third-sector products was up 6.8% year on year, to¥166.3 billion.

The lapse and surrender rate for the nine months ended December 31, 2013 decreased
0 51 percentage
0.51tpointi t year on year, tto 3
3.52%,
52% d
due tto th
the llowering
i llapse andd surrender
drates primarily for term-life insurance.

(Left-hand graph)
I
Incomefromf
insurance
ipremiums
iiincreased
d 12
12.4%
4% year on year, tto ¥738
¥738.7
7 billibillion, ddue ttoan increase in the sale of lump-sum payment endowment insurance and steady growthin policy amount in force(Right-hand graph)
Interest income and dividends was up 12.3% year on year, to ¥90.2 billion, due to anexpansion in investment assets along with business expansion.

(Left-hand graph)CCore
profitfit was ddown 00.6%
6% year on year, tto ¥56¥56.6
6 billibillion. Thi
This iis b
because th
the negativeti
impact from provision of policy reserves resulting from the revision of discount rate used
for calculating policy reserves was offset by an increase in the positive spread and thereversal of policy reserves for minimum guarantees for variable life insurance.
(Right-hand graph)
Ordinary profit increased 3.6% year on year, to ¥54.7 billion.
profit and ordinaryyp
profit include a p
provision ofMain differences between core pcontingency reserve and capital gains and losses.

The number of Lifeplanner sales employees as of December 31, 2013, was 4,092, down
33 ffrom S
Septembert b 3030, 20132013.
Since Sony Life does not hire new Lifeplanner sales employees in December, thenumber of Lifeplanner sales employees as of the end of December tends to be lower
than that as of the end of September every year. However, the number of Lifeplanner
sales employees steadily increased, up 46 from a year earlier.

Here is a breakdown of Sony Life’s general account assets as of December 31, 2013,
comparedd withith MMarchh 31
31, 2013
2013.
As Sony Life continued its investment in ultralong-term bonds, the holding ratio on thereal status, of Japanese government and corporate bonds including those invested inmonetary trusts rose to 90.8% as of December 31, 2013.
Going forward, Sony Life will invest most of new money acquired from income frompremiums in ultralong-termgbonds in order to p
properlyp y control interest rate risk
insurance pon insurance liabilities.

As of December 31, 2013 , Sony Life’s non-consolidated solvency margin ratio was
2 404 8% up 123
2,404.8%,
123.0
0 percentage
tpointsi t ffrom M
Marchh 31
31, 2013
2013, remaining
i i att a hihighh llevel.
lAEGON Sony Life Insurance, which sells individual variable annuities, has steadily
expandedd d itits bbusinessivolume.
lSony Assurance’s ordinary revenues increased 5.7% year on year, to ¥67.4 billion due toan increaseiiin nett premiums
iwrittenitt primarilyiil ffor itits mainstay
i t automobilet
bil iinsurance.
Ordinary profit significantly increased year on year, to ¥2.7 billion, due to a decline in theloss ratio mainly led by the revision of premium rates for automobile insurance and alower car accident ratio owing to the introduction of a new bonus-malus system (nonfleet driver rating system), in addition to a decline in the expense ratio.
pfor the nine months ended December 31,, 2013 was slightly
g yMoreover,, ordinaryy profitdown from that for the six months ended September 30, 2013 of ¥2.8 billion. This isbecause of an increase in the provision for reserve for outstanding losses in this thirdquarter.

Here is an overview of Sony Assurance’s performance.

This slide shows direct premiums written, net premiums written and net losses paid bytype.

(Left-hand graph)
Th numberTheb off policies
li i iin fforce ffor ththe total
t t l off automobilet
bil iinsurance andd medical
di l anddcancer insurance steadily increased 2.8% year on year, to 1.59 million policies. This isbecause Sony Assurance began offering a new discounted premiums (increaseddiscount rate from ¥5,000 to ¥8,000) for new customers who contracted automobile
insurance via Internet.
Net premiums written posted a 5.6% year-on-year increase, to ¥66.5 billion, owing to anincrease in the number of automobile insurance and the effect of the premium revision.
(Right-hand graph)
Ordinary profit significantly increased year on year, due mainly to a decline in the loss
ratio as described in the previous pages. We also show you adjusted ordinary profit inaddition to ordinary profit on the graph. Adjusted ordinary profit is an profit indicator on a
managerial accounting basis. The figure is calculated by adjusting the amount ofprovision(reversal) for catastrophe reserve to ordinary profit. Adjusted ordinary profit also
increased significantly year on year, to ¥3.3 billion.

(Left-hand graph)
F theForth ninei months
th endedd d December
Db 31
31, 2013
2013, ththe E
E.I.
I lloss ratio
ti ddeclined
li d 44.7
7
percentage points year on year, to 68.7%, mainly led by the revision of premium rates
for automobile insurance and a lower car accident ratio owing to the introduction of a
new bonus-malus system (non-fleet driver rating system).
The net expense ratio declined 0.9 percentage point year on year, to 24.6%, due toa proper control of insurance acquisition cost and a rise in automobile insurance
premiums. Consequently, the sum of the E.I. loss ratio and the net expense ratio
percentage
g ppoints yyear on yyear,, to 93.3%.
declined 5.6 p(Right-hand graph)
The net loss ratio declined 2.7 percentage points year on year, to 59.7%. This is different
from the E.I. loss ratio, which reflects an increase or a decrease inprovision for reserve for outstanding losses.
The combined ratio (the sum of the net loss ratio and the net expense ratio) declined 3.6
percentage points year on year, to 84.3%.

As of December 31, 2013, Sony Assurance’s non-consolidated solvency margin ratio
was 547.7%,
547 7% up 43
43.5
5 percentage
tpointsi t ffrom MMarchh 3131, 20132013.

Sony Bank’s consolidated ordinary revenues and ordinary profit increased year on year.
CConsolidated
lid t d ordinary
direvenues iincreased
d7
7.5%
5% year on year, tto ¥27¥27.0
0 billibillion andd
consolidated ordinary profit increased 82.6% year on year, to ¥5.2 billion.
On a non-consolidated basis, Sony Bank’s net interest income increased owing to anincrease in interest income on loans led by the growing balance of mortgage loans and adecrease in interest expenses. Moreover, gross operating profit increased 23.5% year onyear, to ¥16.4 billion and net operating profit increased 96.4% year on year, to ¥5.5
y because of a highergggains on foreigng exchange
g transactions
billion. This is mainly
stemming from customers’ active foreign currency trading, in addition to an improvementin net gains on bond-dealing transactions.

Here is an overview of Sony Bank’s performance.

We break down gross operating profit on a managerial accounting basis to facilitate anunderstandingd t di off operationalti
l sources off revenue andd profits.
fit(Left-hand table)
Net interest income on a managerial accounting basis amounted to ¥13.7 billion, up
5.0% from the same period of the previous fiscal year, owing to an increase in interest
income on loans led by the growing balance of mortgage loans and a decrease ininterest expenses.
g to an increase in gains
gon
Net fees and commissions increased to ¥0.6 billion,, owing
foreign exchange transactions stemming from customers’ active foreign currency trading.
Net other operating income increased to ¥2.0 billion, due to an improvement in net gains
on bond-dealing transactions.
Consequently, gross operating profit on a core profit basis increased ¥0.8 billion year onyear, to ¥14.3 billion, and net operating profit on a core profit basis increased ¥0.4 billion
year on year, to ¥3.5 billion.
(Right-hand graph)
The yield on investment for FY13.3Q was 1.21%.
The yield on financing for FY13.3Q was 0.27%.
Consequently, interest spread for FY13.3Q was 0.93%.

(Left-hand graph)
A off DAsDecemberb 31
31, 2013
2013, ddepositsit (th(the sum off JJapanese yen andd fforeign
i currencydeposits) amounted to ¥1,857.4 billion, remained at the same levels as of March 31,2013. Of which, yen deposit balance amounted to ¥1,504.4 billion, up ¥37.2 billion fromMarch 31, 2013, owing to an effect of converting from foreign currencies to yen backed
by yen depreciation. Foreign currency deposit balance decreased ¥37.2 billion, to ¥353.0billion, due to an increase in selling to lock in profits led by yen depreciation.
( g(Right-handgraph)
gp )Loans balance expanded to ¥1,025.1 billion, up ¥54.9 billion from March 31, 2013 due tothe growing balance of mortgage loans.

(Left-hand graph)
A off DecemberAsDb 31
31, 2013
2013, ththe bbalanceloff securities
iti amountedt d tto ¥782.5¥782 5 billibillion, ddown¥126.2 billion from March 31, 2013. Sony Bank continuously invests in highly ratedbonds.
(Right-hand graph)
As of December 31, 2013, Sony Bank’s non-consolidated capital adequacy ratio(domestic criteria) was 11.92%. Sony Bank has maintained financial soundness.

On February 6, 2014, we have revised upward our consolidated financial forecast forordinary
direvenues, ordinary
diprofit
fit andd nett iincome ffor ththe fi
fiscall year ending
di MMarchh 31
31,
2014, from the forecast announced on May 9, 2013. This is because the operating
results for the nine months ended December 31, 2013, exceeded our previous
estimates in all the businesses. Forecasts of the non-life insurance and the banking
businesses were revised upward on November 15, 2013, reflecting favorable operating
results during the first half of this fiscal year.
p
consolidated forecast reflects the financial market conditions as ofThe updated
January 2014. However, the figures stated above may differ from actual results for avariety of reasons.
In its calculation of the reserve for price fluctuations, Sony Life has accumulated
reserves in excess of required levels. However, Sony Life will change this policy toaccumulating reserves up to required levels from the fiscal year ending March 31, 2015.

Sony Life’s MCEV as of December 31, 2013 increased ¥28.7 billion from September 30,
2013 tto ¥1,186.9
2013,¥1 186 9 billi
billion ddue mainly
i l tto an acquisition
i iti off new policies.
li iNew business value (new business margin) for 9 months ended December 31, 2013 was¥45.2 billion (5.5%) while that for 12 months ended March 31, 2013 was ¥41.6 billion(3.5%) and that for 6 months ended September 30, 2013 was ¥29.7 billion (6.3%).
New business margin as of December 31, 2013 was up from March 31, 2013, due
ginterest rates in the ultra-longg term and the revision of Sonyy Life’smainlyy to higher
insurance premium rates on some of its products in April 2013. New business margin
was down from September 30, 2013, due mainly to an increase in the sale of lump-sum
payment endowment insurance.

The risk amount based on economic value as of December 31, 2013 amounted to¥654 8 billion.
¥654.8billi
Withi
Within SSony Lif
Life’s’ risks,i k iinsurance riski k andd market-related
k t l t d riski k as off
December 31, 2013 amounted to ¥621.1 billion and ¥260.8 billion respectively.
The risk amount based on economic value was up from September 30, 2013, owing toan increase in policy amount in force. However, Sony Life has maintained high financial
soundness by keeping MCEV, which is capital based on economic value, at a higher
level than the risk amount.
Going forward, Sony Life will control a market-related risk such as an interest rate risk
from an ALM perspective, while insurance risk is expected to increase through theacquisition of new policies. Sony Life will strive to raise corporate value on an economic
value basis.

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix