Message from the CEO
We Aim to Become a Unique
Financial Services Company that Provides
Our Customers with Exceptional Value

President & CEO, Representative Director

Copyright © Sony Financial Group Inc. All rights reserved.

1

One year has now passed since I was appointed President & CEO of Sony Financial Group Inc. (SFGI) in June 2023.
Since taking office as President, I have focused on developing ambidextrous management, which involves both“Exploitation” and “Exploration,” in order to create an organization that can accurately grasp social and economicchanges and face customers head-on. In the new Mid-Range Plan (FY2024 - FY2026), which I describe below, we
will aim for sustainable increases in corporate value through “Exploitation,” meaning the growth of existing businesses, and “Exploration,” that is, cross-group initiatives for further growth.

Toward ListingThis year is an important one for us as we make concrete preparations for the partial spin-off by Sony Group Corporation around October 2025 and the listing of SFGI on the stock exchange.
In order to go public, we recognize that we must first earn the trust of our shareholders, investors, and various
other stakeholders, and establish ourselves as a company worthy of their ongoing support. Therefore, we will focus
on generating stable cash flow during the period covered by the new Mid-Range Plan, with the goal of achieving
adjusted net income of ¥120 billion and adjusted ROE of 10% or higher on an IFRS 17 basis in FY2026, the final yearof the plan. This is motivated by the recognition that it is imperative to achieve a level of profit that exceeds the costof capital as a listed company.

P7 Numerical Management Targets of Mid-Range Plan

“Exploitation” in the New Mid-Range Plan Based on the Previous Mid-Range Plan
In order to achieve these goals, the following measures and focus areas will be implemented for the growth ofexisting businesses of Sony Life, Sony Assurance, and Sony Bank with regard to “Exploitation,” which is one of thestrategies in the new Mid-Range Plan.
Sony Life has two main strategies. The first is to improve sales productivity. Productivity per Lifeplanner sales
specialist nearly doubled during the period covered by the previous Mid-Range Plan due to the use of the GLiP
advanced consulting system, enhancement of product lineups, including the SOVANI variable annuities for individuals, and further promotion of corporate sales. In addition, Sony Life’s overall new policy amount for corporate clients
increased significantly, by a factor of approximately 3.7. The growth in the corporate segment was due in large partto the use of Biz-Plan, a comprehensive consulting tool for corporate clients, particularly small and medium-sizedcompanies, and to the growth of the agency channel through the implementation of the Sales Optimization Project.
The Sales Optimization Project is an initiative led by Sony Life’s headquarters to visualize and standardize the sales
activities of Sony Life’s sales representatives for agencies (agency supporters), analyze the behavioral characteristics
of agencies and agents, and utilize the results in building a cycle for improving sales activities. Under the new MidRange Plan, we plan to strengthen support for top-tier Lifeplanner sales specialists and agency supporters, andcreate an environment that allows them to focus on high-value-added work.
The second strategy is the expansion of customer segments. In the corporate sector, which grew remarkably
during the period covered by the previous Mid-Range Plan, we will strengthen the areas of business succession andemployee benefits, while expanding insurance coverage to individual business owners. In addition to the family
segment, which has traditionally been Sony Life’s core segment, we will also work to enhance services and products
for seniors while improving senior life-planning services by utilizing AI.

P8 Life Insurance Business

Next is Sony Assurance. In FY2023, the number of policies, mainly auto and fire insurance, continued to growsteadily during the period covered by the previous Mid-Range Plan, although adjusted net income declined due to ahigher loss ratio resulting from the recovery in traffic volume. In addition, the high brand recognition derived from theSony brand and quality non-life insurance services earned the company high customer satisfaction ratings. Furthermore, through the use of AI, we also made advances in providing the GOOD DRIVE smartphone app, which enables
the measurement of driving characteristics, and marketing sophistication centered on a customer data platform.

Copyright © Sony Financial Group Inc. All rights reserved.

2

Under the new Mid-Range Plan, in the area of auto insurance, we will improve customer convenience by introducing a new service that handles contracts and accident responses at a single point of contact. As for fire insurance, we plan to provide appealing coverage through pricing on a street level using the hazard map, as well as
utilizing the know-how about marketing cultivated by our auto insurance business.

P10 Non-Life Insurance Business

Regarding Sony Bank, our mainstay mortgage loan business continues to perform well, with the balance ofmortgage loans having grown to over ¥3.4 trillion in FY2023. Mortgage loans are promoted mainly through thepartner and agency channels, and the default rate has remained low. In the foreign currency business, another corebusiness, the balance of foreign currency deposits reached a record high during the period covered by the previous
Mid-Range Plan, thanks to the successful promotion of foreign currency deposits in response to the booming
foreign exchange market.
In the new Mid-Range Plan, we intend to further enhance Sony Bank’s products and services, focusing on its
growth engines, the mortgage business and foreign currency business, while capturing changes in customer needs
and interest rate environment. We also intend to focus on expanding our new customer base by creating new
touchpoints originating in a variety of communities, including entertainment, in addition to creating touchpoints
originating from customer life events.

P12 Banking Business“Exploration” for New GrowthWith regard to the other set of strategies in the Mid-Range Plan, “Exploration,” meaning cross-group initiatives forfurther growth, SFG has identified the expansion of customer segments as the core of its growth strategy. Specifically, in addition to families, which is the current main segment, we will aim to expand the range of customer segments by reaching out to younger generations as a potential customer base for the future, the mass affluent, mainly
business owners with broad and unique needs, and both pre-seniors and seniors through the life stage transitions offamilies. Efforts to target each of these customer segments are described from page 10 onwards, but in each casewe will adopt the most appropriate approach and seek to incorporate them into the SFG customer base with a viewto contributing to earnings in the future. Collaboration with the Sony Group is also key to these efforts. We aim tocreate a seamless customer experience from non-financial to financial domains through inter-business collaboration,
focused mainly on entertainment, leveraging Sony’s strengths of brand and technology.
The strategies of the new Mid-Range plan all rest on a foundation of governance and sustainability. SFGI also plans totransition to a company with a nominating committee, etc., as our management system in the current fiscal year, thereby
strengthening our management foundation from a governance perspective. With regard to sustainability, SFG will work as
one to push forward initiatives that contribute to addressing social and environmental issues, as it strives to achieve theGroup’s targets for ESG investments and loans as well as GHG emissions reductions set this fiscal year, while pursuingwhat is known as impact investment.

P6 Extension of customer segments and strengthen collaboration with the Sony Group

SFG’s Core Concept and Objective
With a view to 2030, which lies beyond the period covered by the new Mid-Range Plan, SFG will accelerate investment in growth and take on the challenges of developing new markets and creating new financial services.
As a premise for this growth strategy, we have established SFG’s objective. The core concept of the objective is“Kando for Life,” which we take to mean a foundation for our customers to live their own lives filled with emotion,
followed by “Health for Life,” to live with energy and vibrance, and finally “Asset for Life,” meaning to live with financial well-being. Motivated by these three “for Life” concepts, SFG aims to be a company that continues to support
its customers by staying close to people and using the power of technology.

P5 Progress of the Mid-Range Plan

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Robust Financial Base and Proactive Shareholder Return Policy
Listing on the stock exchange after the partial spin-off is a great opportunity for SFG to grow and evolve, but in
addition to a unique growth strategy, it is essential to have a robust financial base. As a result of Sony Life having
ensured an asset and liability management (ALM) strategy that had been based on a conservative policy in order tomaintain an appropriate level of soundness, the duration gap of assets and liabilities had been almost eliminated.
However, with the recent rise in interest rates, the duration gap has re-emerged, and the SFG consolidated ESR(ratio of equity to the amount of risk based on economic value) fell to 198% at the end of FY2023. While we remain
within our target level, we recognize that the high sensitivity to interest rates is a metric that needs to be urgently
improved. We will continue our efforts at Sony Life to reduce ESR sensitivity by transforming our product portfolio,
utilizing reinsurance in new and existing policies, and promoting sophisticated hedging.
SFG’s capital policy is to aim for stable growth in profits and shareholder returns by achieving both profitability andsoundness through cyclical enterprise risk management (ERM). To achieve this, the holding company will optimize
capital distribution for SFG as a whole. After listing, the policy will be to allocate approximately 40-50% of adjusted
net income to dividends, aiming for a stable increase in the dividend per share.
The remaining 50-60% of adjusted net income, excluding dividends, will be used for investment aimed at growth
while ensuring financial soundness. At present, we have not decided on the allocation of funds by business segment, but intend to consider on a case-by-case basis any projects that contribute to growth. Investment areas
include system investment, human resources investment, expansion of products and sales channels, and allianceswith companies that share the same direction; going forward, we will also consider investment for new growth, suchas M&A and overseas projects.

Toward the “Second Founding” of SFG
This fiscal year represents a pivotal moment for us as it is not only the time for the start of our new Mid-Range Plan,
but also in which we will push forward to achieve our “second founding” before our partial spin-off and listing in
October 2025. I am committed to SFG becoming a unique financial services company that provides our customers
with exceptional value, and is truly appreciated by shareholders as well as wide range of stakeholders.
I would like to express my sincere appreciation for your continuing support.

Copyright © Sony Financial Group Inc. All rights reserved.

4

FY2024-2026 Sony Financial Group

Mid-Range Plan
In the new Mid-Range Plan, the Sony Financial Group, by backcasting from its vision for FY2030, formulated strategies based on the concepts of “Exploitation” and “Exploration” within an ambidextrous management approach. SFG aims for sustainable increases in corporate value through both “Exploitation,”
the growth of existing businesses, and “Exploration,” the cross-group initiatives for further growth.

Sony Financial Group Core Concept
In formulating the Mid-Range Plan starting in FY2024, SFG has taken its core concepts “Kando for Life” to mean a foundationfor our customers to live their own lives filled with emotion, in addition to “Health for Life” and “Asset for Life,” in order tosupport our customers who live true to themselves in the era of the 100-year lifespan.
SFG’s objective illustrates how the Group will support its customers through “Kando for Life,” “Asset for Life” and “Health for Life.”
SFG will continue to support its customers in living true to themselves by staying close to people and using the power of technology.
SFG Core Concept

SFG Objective
Kando
for Life

Fin
a

Fill

Kando
for Life

Healthfor Life

Asset
for Life

Asset
for Life

To enrich your life through moving experiences

Ener

Energy and Vibrance

ial Well-B

gy

and Vibra

To protect and sustain desired lifestylesencFinancial Well-Beingnc

With the ability to stay close to people
and the power of technologyngei

In the era of
the 100-year lifespan,
Live True to Yourself

ionwith Emoted

Filled with Emotion

Healthfor Life

To ensure vibrance for life

We continue to be a supportive
presence

Overall Growth Strategy of Mid-Range Plan
~ FY30

Mid-Range Plan (FY24-26)

Exploration

Cross-group Initiatives for Further Growth➊ Aim to build continuous ➋ Aim to develop the Mass ➌ Aim for further value
touchpoints with
the Younger Generationfrom non-financial tofinancial interactions

Affluent market
centered around
Hoken Seisakusho

delivery to
the Preseniors
and Seniors

Exploitation➍ Aim to strengthen collaboration with Sony Group

Growth of
Existing Businesses

Aim to steadily realize organic growth across each businesses of the group
Life Insurance Business

Non-Life Insurance BusinessBanking Business

P8

P10

P12

Care Business

Venture capital Business

Aim to strengthen the Management Foundation
Governance

Sustainability

Copyright © Sony Financial Group Inc. All rights reserved.

5

Exploitation

Sustainable organic growth ofexisting businesses

With respect to “Exploitation,” SFG will steadily realize sustainable growth of each of the Group’s businesses.
Sony Life will enhance its competitive advantages in both the Lifeplanner and agency channels to maintain a highlevel of performance even in a changing business environment. Sony Assurance will continue to grow its top line,
particularly in auto and fire insurance, by offering appealing products and services and developing promotions
tailored to target demographics. Meanwhile, Sony Bank aims to achieve steady profit growth by growing its top
line, focusing on its growth engines, the mortgage loan business and foreign currency business, while controllingthe expense ratio.

P8~13

Exploration

Extension of customer segments andstrengthen collaboration with the Sony Group“Exploration” has been positioned as an area that should be promoted by the Group as a whole. The central
initiatives in the area of “Exploration” are “expanding our customer base” and “collaborating with the Sony Group.”
Regarding expanding the customer base, more specifically, in addition to families, which is the current main
segment, SFG will work to reach younger generations, the mass affluent (business owners), and both pre-seniors
and seniors.

P8~13➊ Younger Generation➋ Mass Affluent➌ Pre-seniors and Seniors

Non-financial contacts with
Younger Generation utilizing
Sony technology

By expanding Hoken Seisakushowith unprecedented functions androles, we align to the specific needsof customer with Mass Affluent(including wealth management) andacquire new customers

Promoting product development andservice provision in line with the needsof Pre-seniors and Seniors of 50s andup, aiming not only to acquire newcustomers, but also to retain Families

Provision of entertainment

Regional Eco System

Providing educational content
and forming communities

Bridge between
entertainment and finance
Life Event x Financial Services

Forming communities
by conducting
seminars and events

Partners with expertise (tax advisors,lawyers, Sony Life Care (“SLC”),
doctors, local financial institutions)

Senior Life Planning×GLiP
New products and services forPre-seniors and Seniors

Comprehensive
consulting
Functions

Providing“places”
to gather

Rehabilitation support under

Connect to financial
instruments

Lifeplanner

SFG’s financial products

Broad rangeof products
and services

Digital Platform

Offering a wide variety
of services and products such as IFA* and real estate to alignto the needs of customer in addition to life insurance* Independent Financial Advisor

the concept of “Fun”

Second career
support for
motivation in life

Real estate
brokerage andinheritance support
tailored torelocation needs➍ Strengthen collaboration with the Sony Group
Aim to further strengthen group collaboration through Brand and Technology
Aim to create a seamless customer experience from non-financial to financial by inter-business collaboration mainly on entertainment

Brand

Technology

Continue to use the Sony brand after partial spin-off
In addition, aim to further expand brand value throughbusiness collaboration with the Sony GroupStrengthen brands and cultivate a sense of unity of each SFG
company by using entertainment and IP

Increase personalized value for customers by utilizing Sony
Group’s technology AI-based Assistant lifeplanner sales specialist Entertainment x Digital Bank
(web3 wallet, Security Token, Non-Fungible Token) Efficiency improvement of nursing care operations using
data analysis technology

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6

Overview of FY2024-2026 Sony Financial Group Mid-Range Plan

Numerical Management Targets of Mid-Range Plan
As targets for FY2026, the final year of the Mid-Range Plan, SFG aims to achieve adjusted net income of ¥120 billion andadjusted ROE of 10% or higher on an IFRS 17 basis.
SFGI intends to apply Japanese GAAP at the time of its scheduled listing in October 2025, but plans to transition to IFRS in
FY2026. This is because IFRS is a more consistent way of presenting the timeline of business and profit growth in insurance,
which is SFG’s main business, and because it is an accounting standard that can be regarded as a global standard.

KPI Targets for FY2026
Adjusted Net Income(IFRS)*1

FY2023 Result

FY2026 Target

SFG Consolidated¥89.4 billion¥120 billion

Sony Life¥70.5 billion¥98.0 billion

Sony Assurance¥6.8 billion¥9.0 billion

Sony Bank¥11.4 billion¥12.0 billion

Adjusted ROE (IFRS)*2

SFG Consolidated

8.1 %

10.0 % or higher*1 Net income – Adjustments for each entity** Adjustments for each entity 	Sony Life: (1) Investment income (net) related to variable insurance1 and foreign currency translation differences (excluding theequivalent of hedge costs2), (2) Unrealized gains/losses related to variable insurance within insurance finance expenses(all after tax)(income)3 and foreign currency translation differences, (3) Gains/losses on sales of securities, (4) Other one-time gains/losses		Note 1: Investment income (net) related to variable insurance is financial assets measured at FVPL, associated withvariable life insurance and individual variable annuity contracts.
		Note 2: Transaction fees and margin costs required to maintain hedge positions. Includes current accrued interest frombonds designated as measured at fair value through net profits/losses (FVO designated) based on the interest
rate at the beginning of the period.
		Note 3: Effect of changes in the value of underlying items of variable life insurance and individual variable annuity
contracts and changes in interest rates and other financial risks.
SFGI, Sony Assurance, Sony Bank, other entities: One-time gains/losses*2 Adjusted net income / net assets** Net assets as the denominator is the quarterly average net asset during the fiscal year: (beginning of the period balance + end of four quarters balances) / 5

KPI Targets for Group Companies
FY2023 Result

Sony Life

Sony
Assurance

Sony BankFY2026 Target

IFRS New Business Value*1¥261.8 billion

Approx. ¥260.0 billion

IFRS Comprehensive Equity*2¥2.3 trillion¥2.9 trillion

Direct Premiums Written¥154.7 billion¥185.0 billion

Combined Ratio*3

87.5 %

88.5 %(loss ratio of 61.0% + expense ratio of 26.5%)(loss ratio of 61.6% + expense ratio of 26.9%)

Mortgage Loan Balance¥3.4 trillion¥4.6 trillion

Foreign Currency Deposit Balance¥614.7 billion¥760.0 billion

Number of Accounts

1.93 million accounts

2.36 million accounts*1 Post-tax IFRS NBV is calculated as the total of new business CSM and new business loss component, using Sony Life’s effective tax rate.
*2 IFRS comprehensive equity is calculated as the total of the IFRS shareholders’ equity and post-tax CSM.
*3 Combined ratio is calculated as the total of the net loss ratio and net expense ratio.

Copyright © Sony Financial Group Inc. All rights reserved.

7

Life Insurance
Business
VisionWe will be there for our customers as a lifelong companion, protecting theirfulfilling lives so that each and every one of them can realize their own“purpose in life” and continue living true to themselves in the era of the
100-year lifespanOverview

Main products: Death protection insurance (term life insurance, USD-denominated insurance, variable life insurance), living benefits insurance, medical insurance, educational endowment insurance, annuities, and corporate insurance
Main sales channels: Lifeplanner sales specialists (sales representatives),
partners (agencies)

Strengths

Providing and maintaining long-term asset building and reasonable protection based on “Total Life Planning” that supports the realization of eachcustomer’s goals
Business operations with high customer satisfaction
Ensuring financial soundness through ALM tailored to the debt characteristics of our liabilities
Shrinking domestic insurance market,
shrinking family segment

Risks

FY2023
Percentage ofOrdinary Profit byBusiness

Approx.
46%* Percentage excludes nursing care, venture
capital businesses, and elimination ofinter-business transactions

Increased need for new protection, asset
building, etc.

Opportunities

Providing a safe
and secure lifestyleSupporting realization of life plans and goals by customers through high-quality
consulting sales and consulting follow-up by Lifeplanner sales specialists

Contributing to a healthy
and long-lived society

Providing insurance products for long-term asset building and reasonable protection in the era of the 100-year lifespanSupporting customers’ health by providing health and medical information andservices, etc.

Value Creation

Review of FY2023 Results
In the Lifeplanner channel, Sony Life worked to enhance its consulting sales and follow-up services, including rigorous recruitment and extensive training, and promote the GLiP life plan analysis system, as well as the “Total Life Planning” service, whichhelps customers build long-term assets and secure reasonable protection. In the agency channel, it endeavored to further
strengthen its consulting capabilities through efforts such as expanding support tailored to the characteristics of its partners.
Although ordinary profit for FY2023 was significantly lower than the previous fiscal year due to market conditions, withregard to new policies, solid increases are evident in both annualized premiums from new policies and new business value,
resulting in steady top line growth.

Changes in Key Indicators
Amount of Policies in Force(Non-consolidated)*1

Number of Lifeplanner sales
specialists(trillion yen)

57.6

61.1

66.5

5,338

5,402

5,516

IFRS Comprehensive Equity(Non-consolidated)*2

Ordinary Profit(Consolidated)(trillion yen)(billion yen)

2.3

2.4

2.3

941

551

251

March 31, March 31, March 31,
2022
2023
2024

March 31, March 31, March 31,
2022
2023
2024

March 31, March 31, March 31,
2022
2023
2024

FY2021

FY2022

FY2023*1 The total of individual life insurance and individual annuities*2 The total of the IFRS shareholders’ equity and post-tax CSM

Copyright © Sony Financial Group Inc. All rights reserved.

8

Initiatives Aimed at Growth in the Mid-Range Plan
To maintain the high level of performance achieved in the previous Mid-Range Plan in spite of changes in the external environment, Sony Life will enhance its efforts in the Lifeplanner and agency channels, and expand its customer segments by responding to diverse needs.
In addition, it will continue to work on stabilizing profits and strengthening profitability in order to achieve sustainable growth,
based on the premise of ensuring sufficient soundness as an insurance business.

 Enhancement of Sales Productivity by Strengthening

Sony Life’s New Policy Amount*1 and Market Share*2 in Japan

Lifeplanner and Agency Channels(trillion yen)Sony Life's market share (Right) %Sony Life's new policy amount (Left)

8

20.0

15.2%

Sony Life’s new policy amount and industry share have steadily

6

15.0

increased as a result of concentrated efforts under the previ-

4

10.0

ous Mid-Range Plan, such as improving the productivity of

2

5.0

Lifeplanner sales specialists and strengthening corporate sales.

0

In particular, the new policy amount for corporate customers
in the agency channel achieved remarkable growth of morethan five times compared to FY2019.
Under the current Mid-Range Plan, Sony Life will continue tocreate an environment in which top-tier Lifeplanner sales

0.0
FY 98

00

02

06

08

10

12

14

16

18

20

22

*1 Total of individual life insurance and individual annuities published by Japan
Institute for Insurance Research arket share is calculated by dividing Sony Life’s new policy amount by the*2 M
total new policy amount in the industry

New Policy Amount by LP Channel

New Policy Amount by Agency Channel(trillion yen)(trillion yen)specialists and agency supporters are able to dedicate themselves to higher value-added activities through measures such

04

4.2

4.7

3.7

6.2

7.2

1.0

1.2

2.4
1.7

1.8

FY21

FY22

as strengthening recruitment and training of Lifeplanner sales
specialists and agency supporters, as well as improving
administrative efficiency through utilizing digital transformation.

FY19

FY20

FY21

FY22

FY23

FY19

FY20

FY23

 Customer Segment Expansion
In addition to families, which have traditionally been the core segment, Sony Life will expand its value offering to corporate
customers and seniors.
For corporate customers, in addition to providing business security, it will strengthen offerings of products and services in
the areas of business succession and employee benefits, while also strengthening its approach to individual business owners.
For seniors, it will work to advance senior life planning utilizing AI, and enhance products and services meeting the needs ofseniors.

 Strengthening of Financial Base to Support Sustainable Growth
To maintain soundness, stabilize profits, and enhance profitability, Sony Life will
strengthen its financial base by managing risk and return through a combination of sales, product development, and asset management.
Regarding the product mix, under the previous Mid-Range Plan Sony Life
shifted focus from sales of capital-intensive products, such as whole life
insurance, to sales of less capital-intensive savings-type insurance and protection-type insurance. As a result, the product mix has been transformed to focus

Product Mix(IFRS NBV basis)
12.2%
Capital-intensive
Products

50.1%
Capital-lightsavings-type
products
Capital-light
protection-type
products
MedicalWith regard to asset management, as a result of thoroughly implementing its

Operational risk3%

the recent rise in interest rates, it has re-emerged. Going forward, Sony Life will

Catastrophe risk
5%

portfolio that can withstand such interest rate volatility.
In addition, the recent rise in interest rates has gradually increased the propor-

37.1%

22.6%

0.5%

8.0%

FY23

Sony Life | Non-consolidated Economic Value-based Risk Profile(Before Diversification Effects)

ALM strategy the company had almost eliminated the duration gap, but withstrive for a more advanced ALM strategy to build a flexible asset management

27.5%

FY19

on products that are able to achieve high capital efficiency for new policies in
FY2023.

41.8%

Market risk
37%

Credit risk 1%

1,381.8 billion yen
Amount of Risk as of FY23
(Before Diversification Effects)

Insurance risk
54%

tion of market risk, and the company will strive to maintain a low level of market
risk through the use of reinsurance and more sophisticated hedging instruments.

Copyright © Sony Financial Group Inc. All rights reserved.

9Non-Life Insurance
Business
VisionWe will contribute to the realization of a society in which each and every
person can live prosperously by taking on the challenge of creating“differences” that are valuable to our customers and by delivering peace ofmind and Kando to them

Overview

Direct insurer for individuals
Main products: auto insurance, fire insurance, medical insurance, overseas
travel insurance
Main sales channel: Internet

Strengths

Reasonable insurance premiums according to each customer’s s risk
High-quality service in accident response, customer center, website, etc.
Advanced marketing capabilities

Risks

Value Creation

Increase in loss ratio and reinsurance
premiums due to more frequent andsevere natural disasters

Opportunities

FY2023
Percentage ofOrdinary Profit byBusiness

Approx.
12%* Percentage excludes nursing care, venture
capital businesses, and elimination ofinter-business transactions

Heightened need for insurance against
natural disasters
Heightened need for e-commerce

Providing a safe andsecure lifestyleContribution to the realization of a safe society with fewer traffic accidents throughthe use of advanced technology
Contribution to safe and secure homes

Contribution to a healthy
and long-lived society

Providing protection that meets customer needs through the medical insurance
business
Developing new products in response to social changes such as automateddriving and Mobility as a Service (MaaS)

Improved lifestyle
convenience

Review of FY2023 ResultsSony Assurance has promoted customer-oriented efforts, such as improving accident resolution services and the quality ofoperator response during policy processing services, and received the industry’s highest level of customer satisfaction ratings
again this fiscal year from various external rating agencies.
In addition, the company has steadily continued to grow its business as a result of efforts to expand the scope of policies
underwritten through its website for auto insurance and to improve price competitiveness in fire insurance.
The combined ratio has been on an upward trend due to an increase in the number of automobile accidents resulting froma recovery in traffic volume, as well as a deterioration in the loss ratio caused by factors such as an increase in the unit cost ofclaims paid and the occurrence of natural disasters, but it remains low compared to competitors.

Changes in Key Indicators
Direct premiums written

Combined Ratio*1(billion yen)

%

1,416

1,465

Ordinary profit/
Adjusted ordinary profit*2■：Ordinary profit (billion yen)■：Adjusted ordinary profit (billion yen)

1,547
84.5

87.5

148

78.0
90

129
99

64 64

FY2021

FY2022

FY2023

FY2021

FY2022

FY2023

FY2021

FY2022

FY2023*1 Combined Ratio = Net loss ratio + Net expense ratio*2 Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

Copyright © Sony Financial Group Inc. All rights reserved.

10

Initiatives Aimed at Growth in the Mid-Range Plan
Sony Assurance will continue to grow its top line by focusing on its main lines of auto insurance and fire insurance. In addition,
the company aims to improve profitability by appropriately addressing the rising loss ratio in auto insurance. Furthermore,along with the enhancement of high-quality services that can only be provided by people with a thorough customer perspective, the company will accelerate efforts to maximize customer value through the use of advanced technology and establish abrand of trust.

Auto Insurance
Even as the direct auto insurance market itself has grown, Sony Assurance has increased its share and established an unwavering No.1 position while driving growth of the market as a whole.
Under the current Mid-Range Plan, the company will further develop potential customers by delivering “valuable differences”
for customers through the enhancement of its products and the evolution of various services. In addition, as part of preparations for responding to automotive technological innovation, it will also move forward with consideration aimed at the development of connected-car insurance.
Auto Insurance Market and Share of Major Direct Insurers

Trend in Major Direct Insurers’ Auto Insurance Direct Premiums Written¥Bln%

¥Bln

5,000

12.5

140

4,000

10.0

3,000

7.5

2,000

5.0

1,000

2.5

0

0.0

120

Sony Assurance

100
80
60
40

FY 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23: Direct premiums written* (left scale: ¥Bln): Share of major direct non-life insurers (right scale: %)* Total of all non-life insurers, indicating auto insurance market(Note) Graph prepared by Sony Assurance mainly based on publicly available
data from each company
Year ended on March 31

Fire Insurance

20
0

FY 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24(Note) Graph prepared by Sony Assurance based on publicly available datafrom each company
Year ended on March 31
For FY2023, figures published by June 24, 2024 given

Flood Risk Assessment

The company will differentiate

Sony Assurance: Street Level

itself from competitors by leverag-Reference Net Rate: Municipal Level

Sony Assurance sets
classifications according toflood risk on a street level

ing marketing know-how devel-

In reference net rate,entire municipality hassame classification

oped in auto insurance, such as
Areas close to rivers
classified as high-risk

efficient direct advertising and asimplified web application process, and by increasing theappeal of products throughpricing on a street level using
hazard maps.

Flood risk
classification
1
2
3
4
5

Land
classification

Areas distant from rivers
classified as low-risk

1
2
3
4
5

Expansion of Customer BaseIn addition to the growth of its main lines of auto and fire insurance, Sony Assurance will also work to expand its customer
base by considering and promoting diversification of product lines, including pet insurance.

Copyright © Sony Financial Group Inc. All rights reserved.

11

Banking Business
VisionWe aim to be a bank that contributes to providing inspiration to people tolive true to themselves, while expanding the potential of each and every oneof them

Overview

Specialized Internet bank for individuals
Main products handled: Mortgage loans that allow flexible change of interest
rate type and early repayment
Foreign currency deposits with appealing exchange
costsSony Bank WALLET, a cash card with Visa debit
supporting 11 currencies
Main sales channels: Internet, CONSULTING PLAZA, banking agencies

Strengths

Safe, secure, and highly convenient services that take advantage of thecharacteristics of Internet banking
Extensive lineup of high-quality products
Business operations with high customer satisfaction
Contraction of the domestic mortgage
loan market
Decline in foreign interest rates

Risks

Value Creation

Opportunities

FY2023
Percentage ofOrdinary Profit byBusiness

Approx.
42%* Percentage excludes nursing care, venture
capital businesses, and elimination ofinter-business transactions

Increased needs for asset management
products and services
Rising domestic interest rates

Providing a safe andsecure lifestyleSupport for home purchases through the attentive services of dedicated loanadvisors

Contribution to a healthy
and long-lived society

Supporting medium- to long-term asset building and asset management byleveraging Sony Group’s technologies, providing seminars and individual consultations, and utilizing data

Improved lifestyle
convenience

Further improvement of financial transaction convenience, including provision of
seamless payment methods regardless of currency through Sony Bank WALLET,
and contactless and mobile payment capabilities

Review of FY2023 Results
In order to meet the diverse needs of its customers, Sony Bank has expanded the range of its business partners, while at thesame time working to enhance its products and services and improve convenience.
As new asset management products, the company began offering ALTERNA, Mitsui & Co.’s digital securities provided by
Mitsui & Co. Digital Asset Management, Ltd., in June 2023, and became the first Japanese bank to offer digital securities utilizing blockchain technology in July.
Sony Bank has also been strengthening its ties with other Sony Group companies, such as beginning a collaboration program with the Sony Music Group in August.
There has been a steady increase in the mortgage loan balance, and the foreign currency business increased revenues due
to successful asset management in response to rising interest rates, resulting in a steady growth in earnings.

Changes in Key Indicators
Mortgage Loan Balance

Foreign Currency Deposit Balance

Gross operating profit

Ordinary profit(trillion yen)(billion yen)(billion yen)(billion yen)

6,147
3.44
2.59

2.99

March 31, March 31, March 31,
2022
2023
2024

4,577

5,011

March 31, March 31, March 31,
2022
2023
2024

240

491
191

404
348

FY2021151

FY2022

FY2023

FY2021

FY2022

FY2023Copyright © Sony Financial Group Inc. All rights reserved.

12

Initiatives Aimed at Growth in the Mid-Range Plan
Sony Bank aims to achieve steady profit growth by improving its top line, focusing on the company’s mainstay mortgage loan
and foreign currency businesses, while appropriately controlling expenses. In addition to pursuing improvements in convenience and the quality of products and services, it also aims to expand its customer base and lifetime value (LTV) throughefforts to create new value via collaboration with the Sony Group and other means.

Mortgage Loans
Support for home purchases is provided through the attentive services of dedicated loan advisors. In order to meet housingneeds that are diversifying in line with changes in work styles and lifestyles, Sony Bank aims to further improve customer
satisfaction and enhance its business structure by strengthening cooperation with partners and agencies, offering new products and services, and improving the screening process through the use of technology.
Comparison of Default Rates* (based on Percentage of defaulted mortgage loans/ outstanding total)%

Sony BankJapan Housing Finance Agency

0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
CY 02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21

22

* Uses data from the Japan Housing Finance Agency, including Flat 35, as a benchmark

Foreign Currency
The foreign currency balance is increasing steadily
due to the convenience of the Sony Bank WALLET

Foreign Currency Deposit Balance Trend*Sony Bank (indexed)

Market (indexed)

USD/JPY (Right)(21/3=100)
140(Market share)
10.5%

app, the superiority of Sony Bank’s foreign exchange costs, and marketing activities that take60

Strong
yen

127

80

120

into account the interest rate environment.
Going forward, the company aims to further

100

enhance its competitiveness by shoring up the
positioning of Sony Bank as a “Foreign Currency

60

services, and partnerships with companies in otherindustries with high actual demands for foreign currency.

100
85

110.7

80

Business” through branding, convenience, andproduct appeal, reinforcement of banking agency

100

40

121.6

120
133.1
141.4

140
151.3

21/3 21/6 21/9 21/12 22/3 22/6 22/9 22/12 23/3 23/6 23/9 23/12 24/3

160 Weakyen* Describes the balance of personal funds in domestic banks (excluding other financial
institutions and self-employed individuals) as overall industry market size, with the balanceof Sony Bank indexed to 100 as of March 2021

Expansion of Customer BaseIn addition to providing products and services that cater to customers’ life events such as advancing to higher education,
employment, marriage, childbirth, home purchase and retirement, the company will create new products and services that
contribute to the expansion of Kando experiences through collaboration with the Sony Group’s entertainment business.
By cultivating multiple touchpoints with customers, Sony Bank will contribute to expanding the customer base of SFG as agroup.

Copyright © Sony Financial Group Inc. All rights reserved.

13