Content

Consolidated ordinary revenues decreased 4.6% year on year, to ¥631.9 billion.
This is because ordinary revenues from the life insurance and the banking businesses
decreased, while ordinary revenues from the non-life insurance business increased.
Consolidated ordinary profit increased 28.7% year on year, to ¥37.1 billion.
By business segment, ordinary profit from the life insurance and the non-life insurance
businesses increased, whereas ordinary profit from the banking business decreased.
Profit attributable to owners of the parent was up 31.2% year on year, to ¥25.1 billion
due to the increase in consolidated ordinary profit.

Sony Life’s ordinary revenues decreased 5.4% year on year, to ¥564.4 billion.
This was due to a decrease in insurance premium revenues led by a decline insales of single premium products.
Ordinary profit recorded a significant increase of 45.2% year on year, to ¥33.2billion. This was due to a significant decline in provision of policy
reserves for minimum guarantees for variable life insurance owing to a lower
acquisition of new policies, despite lower gains on sale of securities in the generalaccount.
Net income increased 53.6% year on year, to ¥22.8 billion.

(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities decreased 6.3% year on year, to ¥2.449 trillion.
This decrease was due to lower sales of variable life insurance, despite favorable
sales of U.S. dollar-denominated insurance, term life insurance and living benefitinsurance.
The number of new policies decreased 14.3% year on year, to 280 thousand
policies.
(Right-hand graph)
Annualized premiums from new policies decreased 10.0% year on year, to¥38.7 billion, due to lower sales of variable life insurance and educational
endowment insurance, despite favorable sales of term life insurance, U.S. dollardenominated insurance and living benefit insurance.
Of which, the figure for the third-sector products was up 9.7% year on year, to ¥8.1billion

These graphs show Sony Life’s product portfolio of annualized premiums fromnew policies by product.
(Right-hand graph)
Sony Life has been reinforcing its ability to offer U.S. dollar-denominated wholelife insurance and term life insurance under the low interest rate environment.
In FY16.2Q, U.S. dollar-denominated whole life insurance accounts for 8% andprotection-type products including term life insurance accounts for 51% of total
product portfolio, showing a steady change in product portfolio with a focus onprotection-type products.

Sony Life’s policy amount in force which reflects new policy amount and lapse
and surrender amount, is shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance and individualannuities increased 4.7% year on year, to ¥44.1 trillion.
The number of policies in force increased 4.8% year on year, to 7.20 million
polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 5.3% year on year,to ¥799.6 billion.
Of which, the figure for the third-sector products was up 4.5% year on year, to¥184.0 billion.

The lapse and surrender rate decreased 0.19 percentage points year onyear, to 2.14%.

(Left-hand graph)
Income from insurance premiums decreased 6.2% year on year, to ¥477.4 billion
led by a decline in sales of single premium products.
(Right-hand graph)
Interest income and dividends increased 3.5% year on year, to ¥72.2 billion,
reflecting an expansion in investment assets along with the business expansion.

(Left-hand graph)Core profit rose 112.2% year on year, to ¥30.6 billion due to a significant
decrease in the provision of policy reserves for minimum guarantees for variable
life insurance and an decrease in insurance claim payments, despite a fall in thepositive spread.
(Right-hand graph)
Ordinary profit increased 45.2% year on year, to ¥33.2 billion due to a significant
increase in core profit, despite a decrease in capital gains (losses) excluding
hedge gains (losses) related to variable life insurance.

The number of Lifeplanner sales employees as of September 30, 2016, was 4,751,
up 69 from June 30, 2016 and up 336 from September 30, 2015.
The number of Lifeplanner sales employees has steadily increased, reflecting Sony
Life’s initiatives to promote skilled personnel to office managers responsible forrecruiting new Lifeplanner sales employees.

Here is a breakdown of Sony Life’s general account assets as of September
30, 2016, compared with those as of March 31, 2016.

These graphs show Sony Life’s new purchases of securities in the generalaccount assets.
(Right-hand graph)
Based on ALM perspective, Sony Life has promoted diversification of investment
assets while investing in assets that match the liability characteristics.
In FY16.1H (6M), Sony Life invested 30.3% in Japanese government bonds(JGBs), 37.1% in Japanese corporate bonds and 32.0% in foreign bonds,
showing that investment in securities other than JGBs has increased.

As of September 30, 2016, Sony Life’s non-consolidated solvency margin ratio
was 2,774.4%, up 51.6 percentage points from March 31, 2016, remaining at ahigh level.

Sony Assurance’s ordinary revenues increased 4.2% year on year, to ¥50.2 billion,
owing to an increase in net premiums written primarily for mainstay automobile
insurance and an increase in gains on sale of securities.
Ordinary profit increased 22.4% year on year, to ¥3.3 billion due to the increase ingains on sale of securities.
Net income increased 24.4% year on year, to ¥2.4 billion.

(Left-hand graph)
The number of policies in force for the total of automobile insurance and medicaland cancer insurance increased 3.9% year on year, to 1.82 million policies.
Net premiums written increased 2.9% year on year, to ¥48.9 billion, due to stablesales of automobile insurance.
(Right-hand graph)
Ordinary profit increased year on year as described before.
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 was ¥4.9 billion.

(Left-hand graph)
The Earned/Incurred (E.I.) loss ratio was up 0.9 percentage points year on year,
to 63.3%. This is because Sony Assurance recorded the reversal of reserve foroutstanding losses in FY15.1H.
The net expense ratio declined 0.1 percentage point year on year, to 26.6%,due to a proper control on overall operating expenses.
Consequently, the sum of the E.I. loss ratio and the net expense ratio was up 0.8
percentage points year on year, to 89.9%.
(Right-hand graph)
The net loss ratio was up 0.8 percentage points year on year, to 56.7%.
This is different from the E.I. loss ratio, which reflects an increase or a decreasein provision for reserve for outstanding losses.
The combined ratio (the sum of the net loss ratio and the net expense ratio) wasup 0.6 percentage points year on year, to 83.3%.

As of September 30, 2016, Sony Assurance’s non-consolidated solvency margin
ratio was 726.8%, up 33.3 percentage points from March 31, 2016, showing thatSony Assurance has maintained a financial soundness.

Sony Bank’s consolidated ordinary revenues decreased 2.2% year on year, to¥18.6 billion, while consolidated ordinary profit decreased 47.7% year on year, to¥1.7 billion.
Consolidated ordinary revenues decreased due to a decrease in interest anddividend income on securities, partially offset by an increase in interest
income on loans in line with a favorably growing balance of mortgage loans.
Consolidated ordinary profit decreased significantly due to lower interest rates, anincrease in advertising expenses for card loan business, higher operating
expenses owing to the increase in newly acquired mortgage loans, as well as
decreased volumes of foreign currency and investment trust transactions.
On a non-consolidated basis, Sony Bank’s ordinary revenues and ordinary profit
decreased year on year as the same reasons as described in the consolidatedresults.
Gross operating profit decreased 8.2% year on year, to ¥10.0 billion.
Net operating profit decreased 50.0% year on year, to ¥1.6 billion.

We break down gross operating profit on a managerial accounting basis tofacilitate an understanding of operational sources of revenue and profits.
(Left-hand table)
Net interest income increased 5.8% year on year, to ¥9.7 billion, led by thegrowing balance of mortgage loans in the low interest rates environment.
Net fees and commissions decreased ¥0.9 billion year on year, to negative ¥0.2billion, due to lower sales on foreign currencies and investment trusts and higher
fees on guarantee commission.
Consequently, gross operating profit on a core profit basis decreased 4.2% year
on year, to ¥9.4 billion. Net operating profit on a core profit basis also decreased
52.2% year on year, to ¥1.0 billion.
(Right-hand graph)
The yield on investment for FY16.1H was 1.19%.
The yield on financing for FY16.1H was 0.26%.
Consequently, interest spread for FY16.1H was 0.93%.

(Left-hand graph)
As of September 30, 2016, deposits (the sum of Japanese yen and foreign
currency deposits) amounted to ¥1,989.6 billion, up ¥66.1 billion from March 31,
2016.
Of which, yen deposit balance amounted to ¥1,649.7 billion, up ¥61.7 billion fromMarch 31, 2016, due to an increase in yen time deposit balance.
The yen-denominated balance of foreign currency deposits amounted to¥339.9 billion, up ¥4.3 billion from March 31, 2016, even after the negative
impact of exchange rates led by yen appreciation.
(Right-hand graph)
Loan balance as of September 30, 2016 expanded to ¥1,460.6 billion, up ¥116.5
billion from March 31, 2016, due to the growing balance of mortgage loans.

(Left-hand graph)
As of September 30, 2016, the balance of securities amounted to ¥591.0 billion,down ¥29.9 billion from March 31, 2016. Sony Bank continuously invests in highlyrated bonds.
(Right-hand graph)
As of September 30, 2016, Sony Bank’s non-consolidated capital adequacy ratio(domestic criteria) was 9.57%, down 0.32 percentage point from March 31, 2016.
Sony bank has maintained a financial soundness.

Forecast of consolidated financial results for FY16 is unchanged from theforecast announced on April 28, 2016 since the first half results were in line with
our initial forecast.

Sony Life’s MCEV as of September 30, 2016 increased ¥152.9 billion fromJune 30, 2016, to ¥1,229.3 billion due mainly to a rise in interest rates.
New business value for FY16.2Q(3M) was ¥5.0 billion.
New business margin was up 1.6 percentage points from FY16.1Q(3M), due
mainly to a rise in interest rates and a change in product mix along with the sales
suspension of some saving-type products.

The risk amount based on economic value as of September 30, 2016 amounted
to ¥1,023.0 billion, down ¥118.8 billion from June 30, 2016, due mainly to adecrease in insurance risk reflecting a rise in interest rates.
ESR as of September 30, 2016 was 124%, up 29 percentage points from June 30,
2016.
Going forward, Sony Life will continue to improve ESR levels by accumulating
new business value through reinforcing its sales capabilities as well as ensuring
profitability.