Content

In FY15.1H, consolidated ordinary revenues increased in all three corebusinesses. Sony Life’s new policy amount rose significantly, exceeding therecord high amount posted in FY14.1H, and its business volume has beensteadily expanding.
Consolidated ordinary profit was down substantially year on year, andcompared with our initial forecast. This decrease reflected Sony Life’s
substantial increase in the provision of policy reserves for minimum
guarantees for variable life insurance, as well as increased expenses at thebeginning of the policy period incurred by strong sales of new policies.
Given the consolidated ordinary profit results in FY15.1H, we revised ourfull-year profit forecast downward. Although profit was down substantially atthe beginning of the policy period due to higher sales of variable life
insurance, this will contribute to future earnings growth.
As our medium-term profit outlook remains unchanged, we maintain our initialdividend forecast for FY15 (¥55 per share).

Consolidated ordinary revenues increased 3.0% year on year, to ¥662.2 billion, owing
to increases in ordinary revenues from all the businesses: life insurance, non-life
insurance and banking.
Consolidated ordinary profit decreased 38.6% year on year, to ¥28.8 billion. By
business segment, ordinary profit from the banking business increased, whereas
ordinary profit from the life insurance and the non-life insurance businesses
ddecreased.
dProfit attributable to owners of the parent was down 38.6% year on year, to ¥19.1
billion due to the decrease in ordinary profit.

Sony Life’s ordinary revenues increased 2.9% year on year, to ¥596.3 billion due
to an increase in income from insurance premiums despite deteriorated
investment performance in the separate account as a result of worsened financial
market conditions.
Ordinary profit decreased 43.4% year on year, to ¥22.8 billion. This is due to a
substantial increase in provision of policy reserves for minimum guarantees forvariablei bl lif
life iinsurance as a resultlt off an iincrease iin new policy
li amountt anddworsened financial market conditions, partially offset by an increase in gains onsale of securities in the general account. Moreover, increased expenses incurredby strong sales of new policies and higher payment on insurance claims also
contributed to the decrease in ordinary profit.
Net income decreased 44.9% year on year, to ¥14.8 billion.

(Left-hand graph)
New policy amount for the total of individual life insurance and individual annuities
increased 22.9% year on year, to ¥2,615.0 billion, reflecting a record-high newpolicy amount for the first half.
This increase was because of higher sales of variable life insurance and family
income insurance, reflecting the efforts to strengthen sales of death protectiontypeyp pproducts.
Especially, the sales of variable life insurance increased significantly due to thebrisk demand prior to the product revisions.
The number of new policies increased 14.5% year on year, to 327 thousandpolicies.
(Ri ht h d graph)(Right-handh)
Annualized premiums from new policies increased 18.9% year on year, to ¥43.0billion, due to higher sales of variable life insurance.
Of which, the figure for third-sector insurance products was up 12.0% year onyear, to ¥7.3 billion.

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 5.5% year on year, to ¥42.1 trillion, due to strong sales ofnew policies.
The number of policies in force increased 55.8%
8% year on yearyear, to ¥6¥6.87
87 million
polices.
(Right-hand graph)
Annualized premiums from insurance in force increased 6.1% year on year, to¥759.1 billion. Of which, the figure for third-sector products was up 3.7% year onyear, to ¥176.1 billion.

The lapse and surrender rate increased 0.12 percentage points year on year, to2.33%.

(Left-hand graph)
Income from insurance premiums increased 12.1% year on year, to ¥508.7
billion. This increase was because of strong sales of variable life insurance and a
new product, “Lump-sum Payment Whole Life Insurance (Non-notification type),
launched in May 2015, in addition to steady growth in policy amount in force.
(Right hand graph)(Right-handInterest income and dividends increased 6.0% year on year, to ¥69.8 billion,
reflecting an expansion in investment assets along with business expansion.

(Left-hand graph)Core profit was down 62.5% year on year, to ¥14.4 billion, due to a substantial
increase in provision of policy reserves for minimum guarantees for variable life
insurance as a result of an increase in new policy amount and worsened financial
market conditions despite higher positive spread.
Moreover, increased expenses incurred by strong sales of new policies andhigher payment on insurance claims also contributed to the decrease in coreprofit.
(Right-hand graph)Ordinary profit decreased 43.4% year on year, to ¥22.8 billion, due to thedecrease in core profit despite an increase in gains on sale of securities in thegeneral account.

The number of Lifeplanner sales employees as of September 30, 2015, was 4,415,
up 63 from June 30, 2015 and up 167 from September 30, 2014.
The number of Lifeplanner sales employees 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 30,2015 compared2015,
d withith ththatt as off MMarchh 31
31, 2015
2015.
Sony Life continued to invest in ultralong-term bonds.

As of September 30, 2015, Sony Life’s non-consolidated solvency margin ratio
was 2,657.7%, up 102.7 percentage points from March 31, 2015, remaining at ahigh level.

At AEGON Sony Life Insurance, which sells individual variable annuities, newpolicy amount decreased year on year.

Sony Assurance’s ordinary revenues increased 4.0% year on year, to ¥48.2 billion,
due to an increase in net premiums written primarily for its mainstay automobileinsurance.
Ordinary profit decreased 19.9% year on year, to ¥2.7 billion, mainly due to a rise in
the operating expenses despite the increase in ordinary revenues.
Net income decreased 16.8% year on year, to ¥1.9 billion.

(Left-hand graph)
The number of policies in force for the total of automobile insurance and medicaland cancer insurance increased 5.8% year on year, to 1.75 million policies.
Net premiums written increased 4.0% year on year, to ¥47.5 billion, due to astable sale of automobile insurance.
(Right-hand graph)
O diOrdinaryprofit
fi ddecreasedd year on year as d
described
ib d bbefore.
f
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 was ¥4.2 billion.

(Left-hand graph)
The Earned/Incurred (E.I.) loss ratio remained at the same level year on year, to62.4%, reflecting persistently low car accident ratio.
The net expense ratio rose 1.3 percentage points year on year, to 26.7%, mainly
due to higher advertising expenses.
Consequently, the sum of the E.I. loss ratio and the net expense ratio was up 1.3
percentage points year on year,year to 8989.1%.
1%(Right-hand graph)
The net loss ratio declined 0.5 percentage points year on year, to 55.9%. This isdifferent 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) wasup 0.9 percentage points year on year, to 82.7%.

As of September 30, 2015, Sony Assurance’s non-consolidated solvency marginratio was 676.7%, up 47.1 percentage points from March 31, 2015.

Sony Bank’s consolidated ordinary revenues increased 2.0% year on year, to¥19.0 billion and consolidated ordinary profit increased 4.3% year on year, to ¥3.4billion.
This is because of higher revenues related to mortgage loan and foreign currencytransactions.
On a non-consolidated basis, Sony Bank’s ordinary revenues and ordinary profit
increased yyear on yyear as the same reasons as in the consolidated results.
Gross operating profit increased 3.1% year on year, to ¥10.9 billion, due to an
improvement in net fees and commissions backed by higher fees on mortgage
loans. Net operating profit increased 6.5% year on year, to ¥3.3 billion.

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 increased 1.6% year on year, to ¥9.1 billion, led by thegrowing balance of mortgage loans.
Net fees and commissions increased ¥0.6 billion year on year, to ¥0.7 billion, due
to higher fees on mortgage loans and higher gains on foreign exchangetransactions stemming from customers’ active trading.
Consequently, gross operating profit on a core profit basis increased 9.3% year
on year, to ¥9.9 billion, and net operating profit on a core profit basis also
increased 34.5% year on year, to ¥2.2 billion.
(Right-hand)
The yield on investment for FY15.1H was 1.18%.
The yield on financing for FY15.1H was 0.27%.
Consequently, interest spread for FY15.1H was 0.91%.

(Left-hand graph)
As of September 30, 2015, deposits (the sum of Japanese yen and foreign
currency deposits) amounted to ¥1,795.2 billion, down ¥83.0 billion from March31, 2015. Of which, yen deposit balance amounted to ¥1,476.4 billion, down
¥74.6 billion from March 31, 2015, reflecting severe interest rate competitions foryen time deposits.
Yen-denominated balance of foreign
g currency
y depositpamounted to ¥318.7 billion,,
down ¥8.4 billion from March 31, 2015, due to yen appreciation.
(Right-hand graph)
Loan balance as of September 30, 2015 expanded to ¥1,266.7 billion, up ¥79.5
billion from March 31, 2015, due to the growing balance of mortgage loans.

(Left-hand graph)
As of September 30, 2015, the balance of securities amounted to ¥632.2 billion,
down ¥97.7 billion from March 31, 2015.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of September 30, 2015, Sony Bank’s non-consolidated capital adequacy ratio(d(domestici criteria)i i ) was 10
10.59%,59% ddown 00.07
07 percentage pointsiffrom M
Marchh 31
31,
2015, maintaining financial soundness.

SFH revised its FY15 forecast upward for consolidated ordinary revenues but
ddownward
d ffor consolidated
lid t d ordinary
diprofit
fit andd profit
fit attributable
tt ib t bl tot owners off thethparent, from the forecast announced on April 30, 2015.
This is because the operating results of the life insurance business in the first half
was differed largely from the expectations at the beginning of the fiscal year.
The forecast for this second half has been virtually unchanged as the following
two reasons at Sony Life offset each other.
(1)G i on sale(1)Gains
l off securities
iti are expectedt d tot exceed
d our initial
i iti l forecast
ft as aresult of the shift to investing in bonds with ultralong-term maturity. (2)Provision ofpolicy reserves for minimum guarantees for variable life insurance may continue
to exceed our initial forecast.

Sony Life’s MCEV as of September 30, 2015 decreased ¥0.6 billion from June30, 2015, to ¥1,388.2 billion, mainly due to a decline in interest rates despite afavorable acquisition of new policies.
New business value as of September 30, 2015 (6M) was ¥20.1 billion (¥40.2billion / annualized).
New business margin as of September 30, 2015 (6M) was down 0.6 percentage
points from June 30, 2015 (3M), amounting to 2.6%, mainly due to a decline ininterest rates and was down 11.2
2 percentage points from March 31
31, 2015 (12M)mainly due to a change of product mix.
Following the product revision in August 2015, Sony Life plans to revise productdetails on variable life insurance in January 2016, which should improve
profitability.

The risk amount based on economic value as of September 30, 2015 amounted
to ¥766.8 billion. Of which, insurance risk and market-related risk amounted to¥752.9 billion and ¥284.6 billion, respectively.
The risk amount based on economic value as of September 30, 2015 was up
from June 30, 2015, mainly due to a steady increase in policy amount in force.
The economic solvency ratio (ESR), the ratio of MCEV to the risk amount basedon economici value,l
was 181%181%.
Sony Life has maintained financial soundness.