FY2018 Q4 Conference Call for Institutional Investors and Analysts
Q&A Executive Summary

Date and time: May 15, 2019, 4:45–5:30 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.
Sachio Hayashi, Executive Officer, Sony Bank Inc.

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

Q1: [Sony Life] What was the reason for the smaller increase in the number of Lifeplanner
sales employees? Was it due to a decrease in new hires or an increase in resignations?
Do you intend to revise the medium-term target of 5,700 Lifeplanners by March 31, 2021?
A: The smaller increase in the number of Lifeplanner sales employees was affected by the numberof those employees newly hired, which was in turn attributable to our hiring policy of carefully
selecting high-caliber talent. There was no notable year-on-year change in the rate of resignations.
As for the medium-term targets, we plan to explain them at our corporate strategy meeting.

Q2: [Sony Life] Sumitomo Life began selling Sony Life’s U.S. dollar denominated insurancein January 2019. How have the sales been so far? What results do you expect from thatbusiness for FY2019?
A: We would like to refrain from providing specific figures.

Q3: [Sony Life] What was the reason for the substantial increase in annualized premiums
from new policies in Q4 (3M) of FY2018? Do you consider that the increase was a one-off
and the sales growth seen in FY2018 will not be repeated in FY2019?
A: In Q4 (3M) of FY2018, two products saw a significant increase in sales: level premium plan
term life insurance with accident coverage period that went on sale in January 2019; and variable
life insurance (term type) whose premium rates were revised in January 2019. However, the saleof these products, both targeting corporations, is currently suspended. While some of the demand
for these products can be expected to shift to other products targeting individuals, we also needto take into account a possible decline in sales of family income insurance, which recorded strong
sales in FY2018 buoyed by the premium rate revision. In consequence, we forecast an around
10% year-on-year fall in new policy amount for FY2019.

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Q4: [Sony Life] With respect to the corporate products whose sale is being suspended due
to taxation changes, does your FY2019 forecast assume the resumption of the sale or thecontinued suspension?
A: Our forecast is based on the assumption that the sale will remain suspended.

Q5: [Sony Life] How much do you expect FY2019 ordinary profit to be impacted by theprovision of policy reserves?
A: In FY2018, a greater number of customers cancelled existing policies when taking out newones. For FY2019, we expect a decrease in surrenders to result in an around ¥4 billion increasein the provision of policy reserves.

Q6: [Sony Life] How much do you expect FY2019 ordinary profit to be impacted by policy
reserve for minimum guarantees for variable life insurance and by gains or losses onhedges relating to variable life insurance?
A: We do not expect the impact of variable life insurance on ordinary profit to change markedly
from that for FY2018.

Q7: [Sony Life] Why do you forecast a decline in consolidated adjusted ROE for FY2019?
A: Our assumptions are that the new policy amount will decrease by about 10% and interest rates
will remain flat through the fiscal year. Based on these, we forecast that the new business value
for FY2019 will fall to a little less than ¥80 billion from ¥91.3 billion in FY2018, which is expected
to lower consolidated adjusted ROE.

Q8: [Sony Life] Why was the new business value strong at ¥23.1 billion for Q4 (3M) ofFY2018 despite the decline in new business margin? Also, the new business value forFY2019 is forecast to be a little under ¥80 billion, which is less than the amount obtainedby multiplying the new business value for Q4 (3M) of FY2018 by four. What is the rationale
for this forecast?
A: The new business value for Q4 (3M) of FY2018 was strong because the increased sales
volume driven by the robust new policy amount made up for the decrease in the new businessmargin. The reason why the new business value for FY2019 is forecast to be less than that forQ4 (3M) of FY2018 times four is that we expect a fall in new policy amount, primarily for corporate
contracts and family income insurance, while factoring in the impact of the current interest rate
decline.

2Q9: [Sony Life] I understand that assumption changes contributed positively as areconciliation to the increase in MCEV as of March 31, 2019, from a year earlier. Is it correct
to assume that the higher surrender rate resulting from the rise in surrenders had anegative impact on MCEV?
A: While the higher surrender rate adversely affected MCEV, changes in the mortality andmorbidity rates and other assumptions that are reviewed once a year made a significant positive
contribution to MCEV.

Q10: [Sony Life] ESR rose to 235% as of March 31, 2019. Did the substantial fall in interest
rates during Q4 (3M) of FY2018 lower the risk of further interest rate declines? How should
we evaluate the risk amount as a whole?
A: Whereas the interest rate decrease lowered downside risk with regard to interest rates,
surrender risk heightened. As a result, there was no major change in the risk amount as a whole.

Q11: [SFH] Regarding dividend payments to shareholders, has there been any change inthe existing policy of considering a further dividend increase if consolidated adjusted ROE
exceeds 7%? Given that consolidated adjusted ROE for FY2019 is forecast at around 6%,
exceeding 7% does not seem to be achievable in the immediate future. Wouldn't it be anoption to introduce another approach to your dividend policy in order to raise dividends?
A: Our dividend policy remains unchanged. Nonetheless, we are aware of the issue that, in theevent of consolidated adjusted ROE declining due to the accumulation of capital, separate
consideration needs to be given.

Q12: [SFH] As regards recent changes in your management team, what do you aim for byincreasing the number of directors who concurrently serve as members of Sony
Corporation’s management team?
A: The aim is to reinforce the management structure so as to enhance our corporate value. We
are committed to strengthening governance from the viewpoints of shareholders and otherstakeholders.

Q13: [SFH] From the perspective of protecting minority shareholders, what do you thinkof the increase in the number of directors who concurrently serve as members of Sony
Corporation’s management team?
A: We believe that Sony Corporation and our minority shareholders share the common interestof enhancing the corporate value of Sony Financial Holdings.

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