Message from the CEO
Helping each and every person achieve their
dreams and peace of mind, by staying close topeople and using the power of technology

President & CEO, Representative Director

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I wish to express our deep appreciation to all stakeholders for the support and interest you continue to extend.
In addition, I would like to express both our respectful condolences to everyone affected by the
COVID-19 pandemic since last year, and our deepest respect for healthcare workers and others who are
striving to maintain social systems every day.

The Vision and Values of the Sony Financial GroupThe Sony Financial Group (SFG) is a financial group centered on life insurance, non-life insurance and banking. Sony Financial Holdings (SFH), the holding company overseeing management of the Group, became awholly-owned subsidiary of Sony Corporation (now Sony Group Corporation) in September 2020.
“To be a financial group that helps each and every person achieve their dreams and peace of mind, bystaying close to people and using the power of technology to build a society in which people feel uniquely
enriched.” Upon becoming a wholly-owned subsidiary of Sony Group Corporation, we redefined our aspirations as a financial business unique to the Sony Group in the form of the SFG Vision.
Through its Lifeplanner sales specialists, Sony Life provides first-rate financial consulting; Sony Assurance
and Sony Bank offer reliable direct and online services, while Sony Lifecare delivers nursing care services
suitable for each resident. Our new vision is built upon our passion to firmly support the dreams of, andassure peace of mind for, customers and other stakeholders by multiplying the practice of staying close topeople, which is constantly reinforced among the financial professionals of the Sony Financial Group companies, and the Sony Group’s unique power of technology.
All employees of the Sony Financial Group share six core common values. Customer Focus is the starting
point for the business of every Group company, and Originality motivates us to pursue business guided by
the Sony Spirit. We also share, as members of the Sony Group, the values of Dreams & Curiosity, Diversity,
Integrity & Sincerity, and Sustainability. With a special focus on these six values, we undertake specificactions to realize our vision.

Establishment of the New Mid-Range Plan
With the start of FY2021 this April, we initiated a New Mid-Range Plan.
Intensifying competition, the persistence of low interest rates, and the diversification of customer needs
have together made the environment surrounding SFG increasingly challenging. In order to take the initiative
under such conditions, we established the key principle of maximizing corporate value through self-transformation in the New Mid-Range Plan. We will strive to maximize the value provided to customers by being
sensitive to changes in the environment and thoroughly refining the unique strengths of SFG, without settling for past methods.

Five Strategic Pillars
The foundation of our New Mid-Range Plan rests upon five strategic pillars.
The first is to thoroughly strengthen our core and unique competitive advantages. The Sony Life Lifeplanner sales specialists who constitute one of SFG’s greatest strengths are positioned at the core of the promotion of strategy for the Group as a whole, to draw upon their full potential.
When it became necessary to regularly ensure social distancing due to the impact of COVID-19, Sony
Life was quick to introduce remote consulting, and establish a system enabling the provision of high-quality
service by Lifeplanner sales specialists regardless of whether the situation is face-to-face or remote. We will

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continue to strengthen life planning and asset formation support through the introduction of new consulting
tools and deep analysis of customer data, and at the same time focus on corporate sales, one example
being the establishment of a corporate business department. Through doing so, we will enhance the value
provided to customers while further improving productivity.
Sony Assurance, which boasts an overwhelming brand share in direct automobile insurance, will accelerate growth by applying the automobile insurance success model to fire insurance and other categories, andby strengthening its ties with the Lifeplanner channel.
Finally, Sony Bank, which has a strong mortgage loan business, will focus on expanding its foreign currency business in addition to its mortgage loan business. Along with proactively forging alliances with othercompanies, like Sony Assurance it will strengthen its ties with the Lifeplanner channel, thereby expanding its
customer base.
Our second strategic pillar is altering our profit structure to withstand low interest rates. We will strengthen sales of products and services that meet the needs of not only families, which Sony Life has always
focused on, but also corporate clients, customers who are interested in asset formation, and seniors, while
also strengthening our profit structure by increasing the percentage of products with low interest risk. Furthermore, we will increase operational efficiency and reduce our expense ratio through digitalization andreviews of operations. In addition, we will strive to upgrade our asset management capabilities catering to
low interest rates.
The third is to further evolve customer-centric management. One of SFG’s strengths lies in the value of
Customer Focus, which is shared by all our employees. Our consistently high ranking in various customer
satisfaction surveys by external research organizations has resulted in a highly loyal customer base. We willcontinue to fulfill our fiduciary duty and ensure compliance, while also implementing customer-centric management through the provision of better customer experiences to ensure that customer satisfaction reaches
ever higher levels.
The fourth pillar is strengthening our competitive edge through technology. Technology is one of SFG’s
strengths, and this will be further enhanced by becoming a wholly-owned subsidiary of Sony Group Corporation. We will strengthen R&D collaboration in areas such as the Sony Group’s data analysis algorithms,
sensing and AI technology. We will also pursue the creation of new value by combining the Sony Group’s
technology with SFG’s financial business knowledge and experience.
The fifth is the maximization of Group synergies. Specifically, we will strengthen cross-selling among
Group companies. In recent years, sales of Sony Assurance’s automobile insurance and Sony Bank’s mortgage loans by Lifeplanner sales specialists have been steadily increasing, but we will also focus on Sony
Assurance and Sony Bank referring customers to Lifeplanner sales specialists in an effort to promote
cross-selling centered on them. Furthermore, we will proceed with the integration of customer data infrastructure within SFG to provide products that accurately meet customers’ needs, and conduct sensitivemarketing activities spanning the Group. In the future, we will also seek ways to collaborate with other Sony
Group companies in areas such as electronics and entertainment.
In order to ensure effective promotion of these five strategic pillars, the holding company will exert governance over group management and endeavor to further enhance the quality of management. By executing
the New Mid-Range Plan, we will contribute to enhancing the corporate value of the Sony Group as a

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whole. We will strive to sustain that enhancement while at the same time remaining in harmony with ourvarious stakeholders, including not only our customers, but our employees, business partners, local communities and the environment itself.

Change of Company Name to Promote Integrated Group Management
In order to enhance integrated Group management more strongly, and by doing so demonstrate our dedication to both promote synergy as a financial group and maximize the value we provide to customers, wehave decided to officially change the name of our holding company to Sony Financial Group, Inc. (scheduled for October 1, 2021). This reflects how, facing a society undergoing dramatic change, we are working
constantly on self-transformation. By doing so, as a proud financial services arm of the Sony Group, we will
strive to lead value creation as an integrated Group.

Building a Society in which People Feel Uniquely Enriched
At SFG, we have endeavored to act with adequate consideration for both our stakeholders and our impact
on the global environment. While we build trust with our stakeholders through dialogue, I feel that due to
COVID-19, we need to contribute to a sustainable society more than ever before.
The businesses operated by SFG span a variety of areas of activity and business models, but each business shares the common characteristics of providing products and services with high added value thatmeet the needs of individual customers and utilize the power of technology. With the grand vision of “helping each and every person achieve their dreams and peace of mind, by staying close to people and using
the power of technology,” we will work as one Group to create new value with the aim of building a society
in which people feel uniquely enriched.
I would like to express my sincere appreciation for your continuing support.

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FY2021-2023 Sony Financial Group

Mid-Range Plan
SFG’s New Mid-Range Plan, starting in FY2021, follows the key principle of “maximizing corporate
value through self-transformation” and establishes five strategic pillars aimed at realizing this objective.

Background and Vision behind Establishment of New Mid-Range Plan
The business environment surrounding SFG is expected to become increasingly severe in the future, due to intensifying
competition, the persistence of low interest rates, and diversification of customer needs. Moreover, we must also respond to
the rapid march of digitalization and enhance collaboration within the Group.

FuturetrendsIntensificationof competition

Persistenceof low
interest rates

Diversificationof customer
needs

Acceleration ofdigitalization

SFG has pursued a different business model than conventional financial institutions, and has provided products and services
with high added value by meeting the needs of each and every customer. We believe it is necessary to objectively ascertainchanges in the business environment, and build and implement strategies for succeeding amidst intense competition in thatenvironment from a Group perspective.

SFG’sstrengths
Ability to Stay Close to People

Power of Technology

Customer Focus & Originality

High-quality service from life
insurance professionals, ourLifeplanner sales specialists

Industry-leading presence asboth direct and online players

Customer-oriented perspective,
high customer satisfaction
Enterprising energy & enthusiasm reflecting the Sony Spirit

Vision under New Mid-Range Plan

We will refine these SFG strengths and maximize
the value provided to customers.
Furthermore, we will aim to 1) achieve top-line growth exceeding the market, 2) strengthen our abilities tocreate profit, and 3) fully utilize the strengths of SFG and the Sony Group, enabling us to contribute to thegrowth of corporate value of the Sony Group as a whole.

Overview of New Mid-Range Plan
Key Principle

Maximize Corporate Value through Self-Transformation
Strengthen Group Capabilities, Achieve Sustainable & Profitable Growth

SFG’s Five Strategic Pillars for Realizing the Key Principle
1
2
3
4
5

Strengthen core/unique competitive advantages
Alter profit structure to withstand low interest rates
Further evolve customer-centric management
Strengthen competitive edge through technology
Maximize Group synergies
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SFG’s Five Strategic Pillars

1Strengthen core/unique competitive advantages

In addition to drawing out the full potential of Sony Life’s Lifeplanner sales specialists, who with their robust contact points andrelationships with customers are a core competency of SFG, we will promote measures to strengthen agencies.
Specifically, we will raise overall sales productivity through sharing the know-how of high-performance Lifeplanner sales
specialists, improve the efficiency of operations through utilizing digital technology, provide more sophisticated remote consulting, and increase the value provided to customers by utilizing data and other means.

Unlock full potential of our core asset, Lifeplanner sales specialists, and strengthen agency partners
Raise sales productivity
 ncourage the sharing of high-perE
formance Lifeplanner know-how
Strengthen corporate sales
Accelerate agency development

Number of LifeplannerSales Specialists

Continuously increasing hires

FY2020

FY2023 Careful hiring process prioritizing
quality

Further evolve businessmodel through digitaltechnology

Provide more value tocustomers

Improve operational efficiency
Further develop remote consulting
Digitalize customer touchpoints

 evelop data-driven optimizedDsolutions for customers
Expand product lineup

Productivity per LifeplannerSales Specialist*

New Contracts in Agency
Channel+20%

FY2020+20% or higher

FY2023

FY2020

FY2023 Introduce a new consulting system(New LiPPS) Strengthen relationships with key
agencies Improve customer data analytics Foster collaboration with Lifeplanner sales specialists Establish corporate businessstrategy department*Productivity per Lifeplanner Sales Specialist = New
policy amount / Total number of Lifeplanner Sales
Specialists

Sony Assurance and Sony Bank,
which have established a solidpresence through high customer
satisfaction, will further strengthenbusiness models focused on service
quality. They will also work to accelerate growth and expand the customer base by utilizing digitaltechnology and strengthening theirties with the Lifeplanner channel.

By far the No.1 direct
automobile insurer in Japan

Grow mortgage loans

Increase use of technology,
data analytics

Expand foreign currency
business

Apply successful model in
auto to other categories

Forge alliances

Establish dominant presence: No.1 in customer satisfaction
Strengthen ties with Lifeplanner channel

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2

Alter profit structure to withstand low interest rates

As historically low interest rates are expected to continue, Sony Life will build a more resilient profit structure. Concretely, we
will strengthen sales of products and services to better meet the needs of various customers, such as corporate clients,
customers who are interested in asset formation, and seniors. Meanwhile, we will raise the ratio of products with low duration
gap risk, and strengthen our profit structure. Furthermore, we will endeavor to continually improve our expense ratio byrevamping operational efficiency through digitalization and reviews of operations and by reviews of our cost structure. In
addition, we will also enhance our asset management system based on ongoing ALM management. We will expand ourinvestment targets to reach a certain level of investment returns even while low interest rates persist, and carefully review our
ESG investment policy.

3

Improve product mix

Improve expense ratio arner new customers (e.g. corpoG
rate, asset-management, andseniors) and meet their needs
Mitigate duration gap risk byshifting product mix

Improve operation efficiency andproductivity through leveraging
digital technology and redesigning
operationsR eview cost structure and improve
expense ratio against top line growthUpgrade asset management capabilitiesE xpand investment targets to adapt
to low interest rate environmentE nhance asset management system,
including greater emphasis on ESG

Further evolve customer-centric management

Ensure customer-oriented operations,tighten compliance, and pursue higher
customer satisfaction by focusing on thecustomer experience
SFG companies have been highly rated by various externalorganizations, but rather than be complacent strive to transform the customer experience though utilizing technology tobring customer satisfaction to an even higher standard.
NPS®* will be used throughout the entire Group as anindicator for measuring and analyzing improvements incustomer satisfaction in detail.
By understanding the specifics of customer satisfaction ateach contact point and utilizing their feedback, we will strive
to craft a better customer experience while continuously
improving management from a customer perspective.
*NPS® (Net Promoter Score) is a registered trademark of Bain & Company, Satmetrix Systems and Fred Reichheld.

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4

Strengthen competitive edge through technology

The ability to utilize the power of the Sony Group’s technology is a major strength of SFG, and our capacity to utilize thistechnology will accelerate due to our becoming a wholly-owned subsidiary of Sony Group Corporation. First, we will fully
leverage the Sony Group’s data analytics algorithms in order to realize further efficiency gains.
We will promote the utilization of technology with the aim of maximizing the value we provide to customers, such as detailed remote consulting using next-generation life-planning tools and innovations like Sony Assurance’s new automobile
insurance service GOOD DRIVE. In the future we plan to use data to facilitate the development of inventive new products andservices and to help us transform our business models.

Data
Analysis

Transformbusiness models

AI
Mechatronics/AV Output

Sensing

Real World

Maximize value
provided tocustomers

Improveefficiency inexisting
businesses

R&D Collaboration
Another way in which we will strengthen our competitiveness through technology is by collaborating more closely with theSony Group’s R&D divisions.
We will pursue the creation of new value by combining the Sony Group’s technology with SFG’s financial business knowledge and experience to address both potential problems and medium- to long-term issues.
In April 2021, we established within SFH a specialized organization called the Advanced Technology Lab. This Lab willclosely collaborate with the Sony Group’s R&D Center and Intellectual Property Center, sharing human resources as well.
By sharing new business possibilities that use the latest technology among SFG companies, we aim to innovate in waysthat only the Sony Group’s financial business can.

Technology

R&D Center
Intellectual Property Center

ExploreOpportunities

Advanced Technology Lab

Need/Opportunity

Provide benefits andcollaborate withsubsidiaries

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5

Maximize Group synergies

Promotion of cross-selling and integration of Group data infrastructure are key
By situating the Lifeplanner sales specialists, a core value of SFG, as a strategic axis
for the whole Group, we will maximize thevalue we provide to our customers byfostering intra-group collaboration.
Specifically, we will foster cross-selling bystrengthening customer transfer among
Group companies, while integrating customer data infrastructure within SFG. By
pursuing these two tactics together, we will
create a virtuous circle whereby strengthening the customer infrastructure of the Group
fosters the strengthening of our data infrastructure, and vice-versa.
Going forward, we aim to expand thevalue SFG provides to the entire Sony
Group, with a view to developing customertransfer from Group companies.

Foster Cross-Selling & Integrate Group Databases

Customertransfer
Lifeplanner sales specialists

Database

Customertransfer

Database

Customertransfer

Database

Customer transfer

Improve Management Quality
SFH will further improve management quality by leading Group companies in order to powerfully drive the five strategic pillars
of SFG. Specifically, along with clarifying the Group-wide management plan and strategy, we at SFH will deepen our involvement with each Group company and comprehensively strengthen Group governance in order to ensure that respective plans
are executed and their goals are met.
SFH will make decisions regarding investments that contribute to the growth of the entire Group, such as digital transformation, from the perspective of overall optimization.
Lastly, in harmony with not only the Sony Group parent company, but also customers, employees, business partners, ourlocal communities, the environment, and various other stakeholders, we will work to sustainably increase corporate value.

Clarify Groupmanagement plans
and strategies

Achieve full potential in core businesses
Maximize synergies throughcollaboration within GroupStrengthen Group
governance

Strengthen holding company’s planning
and Group management capabilities

Strengthen investments
contributing to growth ofGroup

Digital transformation, invest in digitaltechnologies

Respect diverse
stakeholders

Shareholders, customers, employees,
business partners, local society,environment

SFH is fully involved
in, and committed
to, achieving thetargets of eachGroup company

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Management Targets and Major KPIs in New Mid-Range Plan
Sony Life, Sony Assurance and Sony Bank will work to grow profits and improve capital efficiency through growth of the top
line and strengthening earnings power in their respective businesses.
We will establish specific numerical targets and strategic KPIs associated with major initiatives in each business in order toensure the steady implementation and progression of plans aimed at the achievement of our goals.
Top line
growthIndividual
Lifeplanner
Productivity

Insurance
premiums
by productAmount ofmortgages

Profitability
Improvement
New businessmarginExpense ratio

IFRS Operating Income(FY2020

FY2023)

Average annual growthrate

5+ % or higher*1

Loss ratio/
expense ratio
Return on
advertising
Expense ratio
Margin on
mortgages

IFRS ROE(From FY2023)

8% or higher*2*1: For FY2020, based on US GAAP excluding one -time impacts.
*2: Reflects the adoption of IFRS17 “Insurance Contracts”, whichbecomes effective in FY2023.

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