Content

During the nine months ended December 31, 2014 (April 1 to December 31, 2014),
consolidated ordinary revenues decreased 2.5% compared with the same period of
the previous fiscal year, to ¥1,021.8 billion, owing to a decrease in ordinary revenues
from the life insurance business, whereas ordinary revenues from the non-life
insurance and banking businesses increased.
Consolidated ordinary profit increased 23.2% year on year, to ¥75.8 billion, owing toincreases in ordinary profit from all the businesses: life insurance, non-life insurance
andad babanking.
gConsolidated net income was up 43.0% year on year, to ¥50.5 billion, reflecting therise in ordinary profit, and the change of the calculation policy of the reserve for pricefluctuations for Sony Life.

Sony Life’s ordinary revenues decreased 3.1% year on year, to ¥925.6 billion, due
to a decline in income from insurance premiums, which offset a rise in gains on
investment income. The decline in income from insurance premiums wasprincipally because of the brisk sale of lump-sum payment endowment insurance
prior to the sales suspension during the third quarter period (October 1 toDecember 31) of the previous fiscal year.
Ordinary profit increased 22
22.5%
5% year on yearyear, to ¥67.1¥67 1 billionbillion, due mainly to two
reasons: an increase in gains on sales of securities in the general account and theabsence of the negative impact from the revision of the discount rate used for
calculating policy reserves on the interest rate-sensitive whole life insurance thatwas present in the same period of the preceding fiscal year.
Net income increased 43.4% year on year, to ¥45.2 billion year on year reflecting
th risethei iin ordinary
diprofit,
fit andd theth change
hoff ththe calculationl l ti policy
li off th
the reservefor price fluctuations. The change was to accumulate the reserve up to required
levels from FY14 while it had accumulated the reserve in excess of the required
levels until FY13.

(Left-hand graph)
New policy amount for the total of individual life insurance and individual annuities
for the nine month ended December 31, 2014, increased 20.5% year on year, to¥3,619.0 billion, reflecting a record-high new policy amount for the third quarter
period.
This increase was because of strong sales of family income insurance andvariable life insurance, in line with efforts to strengthen sales of death protectiontype products
products.
In October 2014, Sony Life launched a new type of family income insurance withenhanced scope of protection and revised insurance premiums, which also
contributed to the increase in new policy amount.
The number of new policies increased 11.6% year on year to 463 thousand
policies.
(Right-hand graph)
Annualized premiums from new policies for the nine month ended December 31,
2014, increased 19.1% year on year, to ¥58.0 billion, due to higher sales ofvariable life insurance, educational endowment insurance, and living benefit
insurance. A new product, “Living benefit whole life insurance (living standardtype)”, launched in October 2014, contributed to the increase in annualizedpremiums.
Of which, the figure for third-sector insurance products was up 10.8% year onyear, to ¥11.7 billion.

(Left-hand graph)
Policy amount in force for the total of individual life insurance and individualannuities increased 4.5% year on year, to ¥40,593.6 billion, due to a strong
acquisition of new policies.
The number of policies in force increased 5.2% year on year, to ¥6.59 million
policies.
(Right-hand graph)
Annualized premiums from insurance in force increased 5.2% year on year, to¥727.0 billion. Of this amount, the figure for third-sector products was up 3.3%
year on year, to ¥171.7 billion.

The lapse and surrender rate for the nine month ended December 31, 2014,increased 0.48 percentage point year on year, to 4.00%.
This is mainly because some policyholders switched over to new types of family
income insurance and living benefit insurance which were launched in October
2014.

As for your reference, we show you quarterly trend on new policy amount, lapse
and surrender rate and net increase.
For the third quarter ended December 31, 2014 (FY14.3Q), Sony Life reached arecord-high new policy amount whereas lapse and surrender rate rose, becausesome policyholders switched over to new types of insurance products which werelaunched in October 2014 as described in the previous pages.
Moreover, net increase in FY14.3Q (3M) which included the above effects, alsoreached record highhigh.

(Left-hand graph)
Income from insurance premiums decreased 8.6% year on year, to ¥675.4 billion,
due to the brisk sale of lump-sum payment endowment insurance prior to the sales
suspension during the third quarter period (October 1 to December 31) of theprevious fiscal year.
Income from insurance premiums for level payment insurance has steadily
increased in line with business expansion.
(Ri h h d graph)(Right-handh)
Interest income and dividends was up 10.3% year on year, to ¥99.5 billion, due toan expansion in investment assets.

(Left-hand graph)Core profit was up 6.9% year on year, to ¥60.6 billion, due mainly to the absenceof the negative impact from the revision of the discount rate used for calculating
policy reserves on interest rate-sensitive whole life insurance that was present in
the same period of the preceding fiscal year and an increase in positive spread,
despite an increase in provision of policy reserves for minimum guarantees forvariable life insurance stemming from its higher sales even in a favorable market
eenvironment.
o e(Right-hand graph)
Ordinary profit increased 22.5% year on year, to ¥67.1 billion, due mainly to anincrease in gains on sales of securities in the general account as well as theincrease in core profit.

The number of Lifeplanner sales employees as of December 31, 2014, was 4,216,
down 32 ffrom S
dSeptembert b 3030, 2014
2014.
Since Sony Life does not hire new Lifeplanner sales employees in December, inaddition to promoting Lifeplanner sales employees to office manager in October, thenumber of Lifeplanner sales employees as of the end of December tends to belower than that as of the end of September every year.
However, the number of Lifeplanner sales employees steadily increased, up 124
from a year earlier.

As Sony Life continued its investment in ultralong-term bonds, the holding ratio on
the real status, of Japanese government and corporate bonds including thoseinvested in monetary trusts was 89.6% as of December 31, 2014.

As of December 31, 2014, Sony Life’s non-consolidated solvency margin ratio
was 2,644.2%, up 285.5 percentage points from March 31, 2014, maintaining ahigh level.

Operating results of AEGON Sony Life Insurance, which sells individual variableannuities, are shown here.
New policy amount fluctuates year by year, influenced by stock marketconditions. However, the business scale itself has been expanding, shown as
steady growth in policy amount in force.

Sony Assurance’s ordinary revenues increased 3.6% year on year, to ¥69.9billion, due to an increase in net premiums written primarily for its mainstayautomobile insurance.
Ordinary profit, up 60.4% year on year, to ¥4.4 billion, reached record high due toa decline in the loss ratio mainly led by a lower car accident ratio, as well as therise in ordinary revenues.
Net income increased 79.6% year on year, to ¥3.1 billion, which was also record
high.
high

(Left-hand graph)
The number of policies in force for the total of automobile insurance and medical
and cancer insurance steadily increased 5.3% year on year, to 1.67 million
policies.
Net premiums written increased 3.6% year on year, to ¥68.9 billion due to astable sale of automobile insurance.
(Right-hand graph)
Ordinary profit increased 60.4% year on year, to ¥4.4 billion due mainly to a
decline in the loss ratio as described in the previous pages.
We also show you adjusted ordinary profit in addition to ordinary profit on thegraph. Adjusted ordinary profit is an profit indicator on a managerial accounting
basis. The figure is calculated by adjusting the amount of provision(reversal) for
catastrophe reserve to ordinary profit.
Adjusted ordinary profit also significantly increased year on year, to ¥6.6 billion,
reaching record high.

(Left-hand graph)
For the nine month ended December 31 2014, the E.I. loss ratio declined 5.2
percentage points year on year, to 63.5%, mainly led by the revision of premium
rates for automobile insurance and a lower car accident ratio owing to theintroduction of a new bonus-malus system (non-fleet driver rating system).
The net expense ratio rose 0.7 percentage point year on year, to 25.3%, due
mainly to higher system-related expenses, a rise in insurance acquisition costand a consumption tax rate riserise.
Consequently, the sum of the E.I. loss ratio and the net expense ratio declined
4.5 percentage points year on year, to 88.8%.
(Right-hand graph)
The net loss ratio declined 3.5 percentage points year on year, to 56.2%.
The combined ratio (the sum of the net loss ratio and the net expense ratio)d li d 2
declined
2.8
8 percentagetpointsi t year on year, tto 81
81.5%.
5%

As of December 31, 2014, Sony Assurance’s non-consolidated solvency margin
ratio was 625.4%, up 97.8 percentage points from March 31, 2014.
Sony Assurance has maintained a financial soundness.

Sony Bank’s consolidated ordinary revenues increased 3.5% year on year, to ¥28.4
billion, due mainly to an increase in bond-dealing transactions.
Consolidated ordinary profit increased year on year, amounting to ¥5.3 billion, due
mainly to an improved performance of its consolidated subsidiaries, whereas nonconsolidated profit resulted in a decrease.
On a non-consolidated basis, Sony Bank’s ordinary revenues increased as thesame reason as ini th
the consolidated
lid t d results.
ltGross operating profit increased year on year due to an increase in net otheroperating income despite lower net interest income under the lowering interestrates.
Net other operating income increased due to higher gains on foreign exchangetransactions and an increase in gains on bond-dealing
bond dealing transactions including saleof bonds.
Net operating profit and ordinary profit decreased year on year, due to an increasein general and administrative expenses.

We break down gross operating profit on a managerial accounting basis tofacilitate an understanding of operational sources of revenues and profits.
(Left-hand table)
Net interest income on a managerial accounting basis remained at the same level
as the same period of the previous year, amounting to ¥13.7 billion, because
improved interest income in foreign currencies was offset by lower interest
income on securities under the lowering interest rates.
Net ffees andN
d commissions
i iddecreased
d ¥0
¥0.2
2 billibillion year on year, to ¥0.4
¥0 4 billi
billion,due to lower volume on foreign exchange transactions stemming from passive
foreign currency trading by customers in the first half of this fiscal year.
Consequently, gross operating profit on a core profit basis decreased ¥0.2 billion
year on year, to ¥14.1 billion, and net operating profit on a core profit basis also
decreased ¥0.7 billion year on year, to ¥2.7 billion.
(Right-hand graph)
The interest spread for FY14.3Q was 0.92%, which maintained a certain level
under such a low interest rate environment.

(Left-hand graph)
As of December 31, 2014, deposits (the sum of Japanese yen and foreigncurrency deposits) amounted to ¥1,863.6 billion, down ¥26.3 billion from March31, 2014.
Of which, yen deposit balance remained at the same level, amounting to ¥1,531.6
billion, under persistently low interest rates, despite a positive effect of convertingfrom foreign currencies to yen in yen depreciation.
Foreign currency deposit balance amounted to ¥331.9 billion, down ¥31.5 billion
from March 31, 2014, due to an increase in selling to lock in profits led by yendepreciation.
(Right-hand graph)
Loan balance as of December 31, 2014 expanded to ¥1,121.8 billion, up ¥64.4
billion from March 31, 2014, due to the growing balance of mortgage loans.

(Left-hand graph)
As of December 31, 2014, the balance of securities amounted to ¥742.2 billion,
down ¥31.6 billion from March 31, 2014.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of December 31, 2014, Sony Bank’s non-consolidated capital adequacy ratio((domestic criteria)) was 11.23%,, down 0.49 percentage
pg ppoint from March 31,,2014.
Sony Bank has maintained financial soundness.

On February 4, 2015, we have revised upward our consolidated financial forecast
f ordinaryfor
direvenues, ordinary
diprofit
fit andd nett iincome ffor th
the year ending
di MMarchh31, 2015, from the forecast announced on May 14, 2014.
Consequently, consolidated financial forecast of ordinary profit and consolidated
net income is expected to reach record high.

Sony Life’s MCEV as of December 31, 2014 decreased ¥78.2 billion from
September 30, 2014, to ¥1,234.9 billion, due mainly to a significant decline ininterest rates in Japanese yen.
New business value as of December 31, 2014 was ¥28.2 billion (9M). This isbecause new business value for this third quarter ended December 31, 2014
(FY14.3Q) gained ¥11.7 billion, and new business value for the six months
ended September 30, 2014 of ¥30.3 billion (6M) decreased ¥13.7 billion, to ¥16.5billion,bo , reflecting
e ec g mainlya y a ssignificant
g ca dec
declinee in interest
e es rates
a es in JapaJapaneseese yeyen
during this third quarter.
New business margin as of December 31, 2014 was 2.9%, down from September
30, 2014, due mainly to lower interest rates in Japanese yen.
Please see page 41 for the details of the decline in new business value.

The risk amount based on economic value as of December 31, 2014 amounted to¥735.5 billion. Within Sony Life’s risks, insurance risk and market-related risk
amounted to ¥709.6 billion and ¥290.5 billion respectively.
The risk amount based on economic value as of December 31, 2014, was up
from September 30, 2014 due to lower interest rates and an increase in policy
amount in force.
However, Sony Life has maintained high financial soundness by keeping MCEV,
which is capital based on economic value
value, at a higher level than the risk amountamount.

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