Consolidated Financial Results for the First Half of Fiscal 2019
Conference Call for Institutional Investors and Analysts Q&A (Executive Summary)

Date: November 12, 2019 4:30-5:15pm
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.
Sachio Hayashi, Executive Officer, Sony Bank Inc.

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

Q1: [Sony Life] Looking at reasons why new business value in FY19.2Q (3M) wasonly ¥14.8 billion, how much of a negative factor was the increase in sales of U.S.
dollar-denominated single-premium whole life insurance? Also, how much do you
expect this figure to recover in 2H as this negative factor grows less pronounced
and you benefit from the relaunch of products for corporate customers?
A: Sales of U.S. dollar-denominated single-premium whole life insurance were up
significantly ahead of a revision of premium rates (increase in premiums) in October 2019.
We refrain from responding to questions about the profitability of individual products. In 2H,we expect new policy amount to be higher than in 1H due to the contribution of products forcorporate customers. Accordingly, we expect new business value for the year to bebetween ¥65 billion and ¥70 billion.

Q2: [Sony Life] If you expect new business value for the year to be between ¥65billion and ¥70 billion, would it be accurate to say you do not expect the relaunch ofproducts for corporate customers to have a major positive impact on 2H sales? Whatpercentage of sales do you see corporate contracts as being from October? Also,
what are your assumptions for market conditions in 2H?
A: As we have just recommenced sales, it is difficult to assess the situation right now. Thatsaid, in October corporate contracts were returning toward the same percentage of new1

policy amount as before we suspended sales of products for corporate customers (around20%). We expect new business value to be higher in 2H than in 1H. We are assuminginterest rates will remain unchanged from end-September levels.

Q3: [Sony Life, Sony Assurance, Sony Bank] Could you please provide a forecast ofconsolidated ordinary profit for the FY2019 full-year, taking 1H performance intoaccount?
A: [Sony Life] The new policy amount in 1H was lower than we had initially expected,
contributing to an increase in profit. However, given the situation in 2H with regard to newpolicies and changes in the levels of operating expenses and insurance claims paid, ourfull-year forecast remains unchanged.
[Sony Assurance] In 1H, we were affected by Typhoon No. 15 and other natural disasters,
but performance was favorable otherwise, so we saw profits increase, and performance
was better than we had initially expected. At the moment, in 2H we expect vehicle damage
in relation to automobile insurance due to Typhoon No. 19, but as we have taken that andother negative factors into account, our full-year forecast remains unchanged.
[Sony Bank] Mortgage loans were particularly favorable in 1H, so profit rose thanks tointerest on mortgage loans and net fees and commissions. In 2H, we expect the interest
spread to narrow due to a U.S. interest rate cut, so our full-year forecast remains
unchanged.

Q4: [Sony Life] In January 2020, the standard yield on yen-denominated singlepremium whole life insurance was reduced to 0%. Will you respond by revisingpremium rates on this insurance? If so, how will that affect the product mix in 2H?
A: As we currently are not selling yen-denominated single-premium whole life insurance,
there will be no effect.

Q5: [Sony Life] Why did 1H ordinary profit rise ¥10.9 billion year on year? Last fiscalyear, you recorded a ¥4.0 billion impairment loss on ClearView’s shares. Theabsence of this loss in the current fiscal year would have led to an increase inordinary profit. What is the status of impairment losses?

2

A: We recorded an impairment loss of ¥2.9 billon on ClearView’s shares in FY19.2Q.
However, a decrease in the new policy amount was accompanied by a lower expenses toacquire new policies. This factor, plus expansion of the policy amount in force, led to higher
profit.

Q6: [Sony Life] How are your asset and liability durations?
A: Yen-denominated bonds have a duration of 22 years; for bonds denominated in U.S.
dollars, the duration is around 25 years. Although we will refrain from responding to thequestion about liability duration, we prioritize investments in assets that match thecharacteristics of our insurance liabilities, and we promote ALM to curtail interest rate risk.

Q7: [Sony Life] Could you please outline the gain on step acquisitions, goodwill andamortization methods in relation to the conversion of AEGON Sony Life and SA
Reinsurance to subsidiaries? In the event of a merger, is Sony Life able to make useof AEGON Sony Life’s loss carry forward?
A: The final amounts will be determined at the end-FY2019 account settlement, but thegain on step acquisitions is negligible. Goodwill is valued at around ¥6 billion, and we
expect to use straight-line amortization over a 20-year period. We expect goodwill
amortization to have only a slight impact on performance in the current and future fiscalyears. As the question about loss carry forward assumes a merger, we will refrain fromresponding.

Q8: [SFH] The letter from the CEO Sony sent out in September refers to enhancing
governance structure, increasing shareholder returns and supplement publicdisclosures. What sort of discussions have SFH and Sony Corporation had?
A: SFH’s Board of Directors routinely considers shareholder returns. There are no majorchanges at present, but we will continue to consider the issue as we move toward the endof the fiscal year. With regard to disclosures, we aim to bolster corporate value by engaging
properly in dialogue with investors. We plan to undertake various IR activities and further
enhance disclosure.

3

Q9: [SFH] You have set achieving consolidated adjusted ROE of more than 7% as acondition for a dividend increase of more than ¥2.5. I believe that satisfying thiscondition will be difficult; will you take a broad view on this condition?
A: In dialogue with investors, we have been told our capital policies are unclear, so we willendeavor to clarify it. At present, returns have not been determined, but we will consider
them carefully.

4