Q&A (Summary) on the Corporate Strategy Meeting of theSony Financial Holdings Group for Fiscal 2012

Date:
June 4, 2012, 14：00–15：30
President, Representative Director of
Respondents： Katsumi Ihara
Sony Financial Holdings Inc.
Hirotoshi Watanabe Director, Member of the Board, Sony Financial Holdings Inc.
Mitsuhiro Koizumi Director, Member of the Board, Sony Life Insurance Co., Ltd.
Shinichi Yamamoto President, Representative Director of Sony Assurance Inc.
Shigeru Ishii
President, Representative Director of Sony Bank Inc.
Note: The original content has been revised and edited for ease of understanding.
Q&A
Q1. [Sony Life]
Page 9 of the presentation material shows that annualized premiums from new policies areincreasing for the independent agent channel. What is the difference in operating expense ratio
between the Lifeplanner channel and the independent agent channel, owing to the difference incommissions paid to Lifeplanner sales employees and independent agents? Also, what is thedifference in rate of continuity between the Lifeplanner channel and the independent agent
channel?
A1.
The independent agent channel incurs additional costs for running agent organization, so commissions areslightly higher than for the Lifeplanner channel, but in terms of the operating expense ratio there is hardly
any difference between the channels. With regard to the rate of continuity, the expertise in
consulting-based sales that exists in the Lifeplanner channel is also applicable to the independent agent
channel, so there is no major difference between channels.
Q2. [Sony Life]In view of your medium-term target of increasing the number of Lifeplanner sales employees byaround 300 by fiscal 2014, what is your current recruiting status?
A2.
Several years ago, we introduced more stringent recruiting standards. As we have seen the productivity of
new Lifeplanner sales employees increase, we believe that our current direction was correct. We also
have initiatives in place to promote superior Lifeplanner sales employees to sales office manager
positions and we have introduced other types of training to foster ongoing skills development. As a result,
our recruiting activities are showing signs of improvement, both in activity volume and its results, and weplan to continue along this path.

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Q3. [Sony Life]
Over the past 10 years, the policy amount in force for the existing Lifeplanner sales employees hasrisen. Servicing in-force policies for the existing policyholders requires more time, which leaves lesstime to acquire new policies. How will you raise and then maintain the productivity of the current
Lifeplanner sales employees?
A3.
As page 10 of the presentation material indicates, we will employ web-based systems to communicate
with customers and introduce systems so that Lifeplanner sales employees are able to respond tocustomers immediately, if needed. Therefore, we will work to raise the productivity of Lifeplanner sales
employees by adopting measures to make the business flow more efficient.
Also, last year we introduced a policy succession program so that younger Lifeplanner sales
employees can pair up with Lifeplanner sales employees who have long careers. They maintain policies
together, and policies are gradually passed on to the younger employee. This process enables Lifeplanner
sales employees who maintain a large number of policies to pass these on to the next generation ofLifeplanner sales employees.
Maintaining existing customers’ policies also presents opportunities to obtain additional policies fromthose customers, so it is not necessarily true that productivity declines for Lifeplanner sales employees
who are in charge of a large number of policies in force.
(Additional question: What are the trends in the sale of additional policies to the existing
policyholders?)
I cannot provide a numerical answer, but there are many cases indicating that we receive more
introductions and contract more additional policies as a result of more extensive consulting-based followup.
Q4. [Sony Life]
You have disclosed the risk amount based on economic value as of March 31, 2012. What is thisintended to say about Sony Life’s future directions?
A4.
Sony Life calculates the risk amount using an internal model based on QIS5 of European Solvency II, andwe will continue to control the risk amount based on economic value to fall within our MCEV amount.
We recognize that risk amount will increase as much as we acquire more new policies. We will also
continue to control this risk amount, monitoring regulatory trends in Japan and overseas.
(Additional question: Rather than according to profits based on statutory accounting requirements,
couldn’t you consider paying dividends on the basis of economic value, taking into account yourhigh degree of financial soundness?)[SFH]
At present, Sony Life provides the only source of dividends for SFH’s shareholders.
However, when considering dividend SFH must balance three factors: maintaining a level ofsoundness that will cultivate the trust of its policyholders, securing the resources for corporate growth,and shareholder returns.
Recognizing that we have achieved a level of financial soundness that compares favorably with highlysound European insurers, as we explained in the presentation we are considering dividend policies thatwill increase shareholder returns. However, as we are a Japanese company we are obliged to consider thepayment of dividends based on profits determined according to Japanese statutory accounting
requirements.

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Q5. [Sony Life]
You did not make any particular reference to Sony Life’s investment of assets. Have there been any
changes in your medium-term investment strategies?
A5.
In general, our strategies remain unchanged. As the number of new policies accumulates, we willcontinue mitigating interest rate risk.
Q6. [Sony Assurance]
Are there any synergistic effects with Sony Life in Sony Assurance’s medical insurance?
A6.
We believe that certain business contributions do exist as a group in the sense that offering the suitable
insurance products through different channels allows us to reach a larger market.
Q7. [Sony Assurance]
On page 16 of the presentation material, you indicate that you will “cultivate other types ofinsurance.” What exactly does this mean?
A7.
We are considering the development of a variety of other insurance products in addition to automobile
insurance and medical insurance. I cannot comment specifically on their content, but we are considering
insurance products that are in line with our characteristic business model of insurance sales through directchannels.
Q8. [Sony Assurance]
Leading non-life insurers set their medium-term targets for a combined ratio of 95%, but Sony
Assurance’s medium-term target for this ratio is 94%. Thus, currently there is a discrepancybetween Sony Assurance and the major non-life insurers, but this gap appears to be decreasingover time.
Is this a result of your ongoing pursuit of price competitiveness as a direct non-life insurer?
A8.
Sony Assurance’s medium-term target for the combined ratio is based on its earned/incurred loss ratio.
Please understand that is difficult to make a direct comparison with the combined ratios for major non-life
insurers, as theirs are based on the net loss ratio.
Sony Assurance’s target for the combined ratio of 94% indicates significant efforts required to lower
the earned/incurred loss ratio. For that reason, Sony Assurance is currently considering certain rises in its
level of policy premiums.
Q9. [Sony Bank]
Does Sony Bank’s entry into the credit card business represent a specific direction by the SFH
Group to offer sales of financial products using card settlement?
A9.
One of our most important points regarding the scale of the credit card business is our relationship with
the Sony Group. We are also pursuing a number of other possibilities, such as increasing the scale of thisbusiness by considering further alliances within the SFH Group.
In 2011, we invested in SmartLink Network, Inc. (SLN), which handles credit card settlement over theInternet, and converted this company to a consolidated subsidiary. We are thinking of expanding thecredit card business, including in cooperation with SLN.

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Q10. [SFH]
On page 32 of the presentation material, you indicate a “medium-term target for the dividend
payout ratio.” Do you plan to begin applying this dividend policy right away from fiscal 2012? Also,with regard to the dividend amount for fiscal 2012, you indicate that this amount will be “set at an
appropriate time in the future.” What exactly does this mean?
A10.
Our “medium-term target for the dividend payout ratio” is 30% to 40%, taking into overall considerationsuch factors as the Group’s medium-term growth potential and the industry’s dividend levels. In principle,
we will consider the dividend amount based on this dividend payout target. We plan to determine thedividend amount for fiscal 2012 after we have had more confidence to forecast our consolidated operating
performance.
(Additional question: Is a potential reduction in the standard assumed interest rate one of thereasons for an uncertainty at this point?)
This factor is also an uncertainty.
Q11. [SFH]
Why have you decided to enter the nursing care business? Can you provide some background on
this?
A11.
We have already pursued a number of activities in preparation for this move into the nursing carebusiness, such as Sony Life’s business alliance with Watami Co., Ltd., in the nursing care business. Sony
Life’s sales of insurance products to the senior segment are currently robust, and over the medium to longterm we foresee that demand for nursing care services will be strong. Therefore, entering the nursing carebusiness is the next step in a natural progression. We aim to help our customers live fulfilled and securely
throughout their lives, and to also help build a platform through which they can do so with dignity.
(Additional question: What do you see as the competitiveness of the SFH Group that will allow you
to differentiate yourselves from other companies in the nursing care business?)
I cannot respond by providing specific examples, but we believe there is a high degree of affinity with thecustomer network of Sony Life’s Lifeplanner channel.
(Additional question: On a slightly different topic, aren’t you considering development of theInternet channel in the life insurance business?)[Sony Life]In the past, Lifeplanner sales employees have pursued life insurance sales by using a face-to-faceapproach. We will continue to monitor business trends, but for the moment we are not considering
Internet-based sales of life insurance.
Q12. [SFH]
You mention growing the nursing care business into your “fourth pillar.” Specifically, what are
your numeric targets?
A12.
Over the approximately 10 years since Sony Assurance and Sony Bank have commenced operations, theyhave developed into companies with annual ordinary profits of several billion yen. Our aim is for thenursing care business to expand into something along this scale.

4Q13. [SFH]
Are you considering any M&A activity or business alliances in the nursing care business?
If you do become involved in M&A activity or business alliances, what sort of companies would
you target?
A13.
We would like to choose as an M&A or business alliance partner a company that provided high-qualityservices.
Q14. [SFH]
Are you looking at the nursing care business as one that provides better capital efficiency on astand-alone basis than your current three businesses? Or are you looking at this development as away to generate synergy with your life insurance business?
A14.
We aim to develop this business as an independent entity, rather than relying on other operations.
Q15. [SFH]
Why have you not looked to overseas developments in any of your operations other than thebanking business?
A15.
We are always considering such developments for our three businesses. We simply have not made any
decisions at this point with regard to country or launch timing.
Q16. [SFH]
SFH’s stock price valuation appears to be more or less at the same level as for other major life
insurers.
Also, you have indicated medium-term targets for the SFH Group to achieve stable growth. Is
this Sony Corporation’s policy?
A16.
We cannot comment on SFH’s stock price, but each of the SFH Group companies has a unique businessmodel. We want investors to understand that ours is a company that has the potential for increases incorporate value over the medium to long term, and we will continue pursuing IR activities to this end.
The mid-term management targets that we announced today are from the viewpoint of the SFH Group
itself; and these have nothing to do with Sony Corporation’s policies. SFH and Sony Corporation have
independent management structures.

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