Consolidated Financial Summary (Japanese GAAP)
for the Fiscal Year Ended March 31, 2019
May 15, 2019Sony Financial Holdings Inc.
(URL: https://www.sonyfh.co.jp/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Shigeru Ishii, President and Representative Director
Inquiries:
Yasuo Hasegawa, General Manager-Investor Relations Dept.
(Telephone: +81-3-5290-6500)(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the fiscal year ended March 31, 2019(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change

1,629,182

8.3

93,85640.4

62,07419.6

1,503,630

8.8

66,8430.8

51,89524.7

For the year ended
March 31, 2019
For the year ended
March 31, 2018
Note: Comprehensive income:

Profit Attributable to Owners of
the Parent

Ordinary Profit

For the year ended March 31, 2019:¥57,415 million:

10.0%

For the year ended March 31, 2018:¥52,207 million:

143.6%Net Income per
Share

Net Income per
Share(Fully Diluted)

Yen

Yen

%

%

%

142.69142.67

9.7

0.7

5.8

119.30119.29

8.5

0.6

4.4

For the year ended
March 31, 2019
For the year ended
March 31, 2018
Notes: Equity in earnings (losses) of affiliates:

Net Income on
Shareholders’EquityFor the year ended March 31, 2019:¥(1,748) million

For the year ended March 31, 2018:¥(2,338) million

Ordinary Profit on Ordinary Profit on
Total Assets
Ordinary Revenues(2) Financial conditions
Total Assets
As of March 31, 2019
As of March 31, 2018
Note: Net assets attributable to shareholders:

Total Net Assets

Net Asset Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

13,468,215
12,401,446

656,846
625,406

4.9
5.0

1,505.20
1,433.73

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at end of
the period

As of March 31, 2019:¥ 654,800 million

As of March 31, 2018:¥ 623,661 million(3) Cash flows
Cash Flows fromOperating Activities
For the year ended
March 31, 2019
For the year ended
March 31, 2018

Cash Flows from
Investing Activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

802,921(659,815)(26,645)

509,594

819,721(680,845)(14,496)

393,133

2. Dividends
Dividend per Share

Record date

For the year ended
March 31, 2018
For the year ended
March 31, 2019
For the year ending
March 31, 2020
(forecast)

AnnualDividend
AmountDividend
Payout
Ratio

Dividend on
Net Assets

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

－

0.00

－

60.00

60.00

26,099

50.3

4.3

－

0.00

－

62.50

62.50

27,189

43.8

4.3

－

0.00

－

65.00

65.00

43.5

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2020
(Percentage figures represent changes from the results of the previous fiscal year.)
Profit Attributable to
Net Income per
Ordinary Revenues
Ordinary Profit
Owners of the Parent
Share
For the year ending
March 31, 2020

Millions of yen% change

Millions of yen% change

Millions of yen% changeYen

1,690,000

3.7

98,0004.4

65,0004.7

149.42

4. Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scope of
consolidation): None
(2) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of March 31, 2019:
435,062,983 shares
As of March 31, 2018:
435,027,513 shares(b) Number of treasury shares
As of March 31, 2019:37,425 shares
As of March 31, 2018:35,775 shares(c) Weighted-average number of shares
For the year ended March 31, 2019:
435,016,259 shares
For the year ended March 31, 2018:434,979,667 shares
Audit of Financial Statements
This earnings report is exempt from audit procedure of certified public accountants or audit firm.

Content of Supplemental Materials
I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance ………………………………………

2

2. Qualitative Information on Consolidated Financial Position ……………………………………………

5

II. Status of the Corporate Group ………………………………………………………………
III. Basic Views on Selection of Accounting Standards………………………………………
IV. Consolidated Financial Statements

6

1. Consolidated Balance Sheets ……………………………………………………………………………

7

6

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ……………………………………………………………………

9(Consolidated Statements of Comprehensive Income) …………………………………………………

12

3. Consolidated Statements of Changes in Net Assets………………………………………………………

13

4. Consolidated Statements of Cash Flows…………………………………………………………………

16

5. Notes to the Consolidated Financial Statements
1) Note on Going Concern ………………………………………………………………………………

182) Segment Information …………………………………………………………………………………

183) Per share data…………………………………………………………………………………………

214) Subsequent Events……………………………………………………………………………………

21

V. Attachment
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 and Sony Life’s Preliminary
MCEV as of March 31, 2019……………………………………………………………………………

23* The conference call for explaining the Sony Financial Group’s financial results will be held at 16:45 (Tokyo),
May 15, 2019. Please note that our conference call will be held only in Japanese.
We will upload the presentation materials with speech text on May 15, 2019 after 15:00 (Tokyo), the translationof the conference call (audio) on May 17 and the Q&A summary (text) at a later date on the Earnings Releases
and Presentation Materials page of our website:
https://www.sonyfh.co.jp/en/financial_info/results/index.html* We will upload the press releases on Sony Life’s Market Consistent Embedded Value as of March 31, 2019,scheduled as below.
・ Full report: Scheduled to be uploaded on May 20, 2019 at 15:00 (Tokyo)
Please see further details at our website: https://www.sonyfh.co.jp/index_en.html* On May 15, 2019, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiaries―Sony Life Insurance Co.,
Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank)―will announce theirfinancial results for the year ended March 31, 2019. SFH has prepared an English-language summary of thoseJapanese announcements made by the above subsidiaries, solely for convenience of non-Japanese readers.

- 1 -I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
1) Analysis of Operating Performance
During the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019), the Japanese economy saw slower growth.
Weakening global demand for IT products that began in early spring, coupled with trade tensions between the United States
and China, caused global trade to contract. In Japan, as exports and industrial production fell, business sentiment, especially inthe manufacturing sector, deteriorated significantly. In the nation's labor market, on the other hand, employment and wages
continued to improve driven by labor shortages. Domestic demand and nonmanufacturing business conditions also remainedsolid. As domestic demand contrasted starkly with foreign demand, Japan's GDP growth rate was unstable, fluctuating
between positive and negative territories.
In bond markets, yields on 10-year Japanese government bonds (JGBs) ranged between negative 0.10% and positive
0.15%. In July 2018, the Bank of Japan announced a change to its monetary policy, deciding to reduce its purchases of JGBs
and allow 10-year JGB yields, which had been fixed at 0%, to move upward and downward. Upon this announcement, 10year JGB yields rose to nearly 0.15% at one point. From October 2018, however, US interest rates started declining amid
uncertainty over the outlook for the global economy, leading JGB yields to fall in tandem. Furthermore, in March 2019, when
the US Federal Open Market Committee indicated that it would pause policy rate increases until the end of the year, 10-year
JGB yields declined to almost negative 0.1%.
In foreign exchange markets, whereas the yen was traded at nearly ¥106 to the US dollar in April 2018, it weakened toabove ¥114 in October 2018 owing to the stronger economy and higher interest rates in the United States. Subsequently, an
increasingly uncertain economic outlook led to lower US interest rates, which caused the yen to strengthen to the ¥104 range
at one point in early 2019. However, once US monetary policy turned dovish thereafter, Japanese and US stock prices started
to rise again, resulting in market participants’ risk appetite gradually returning. As markets sold the low-interest-rate yen inthat environment, the currency weakened to around ¥111 against the US dollar at the end of March 2019.
Amid these circumstances, the Sony Financial Group sought to become the financial services group most highly trusted bycustomers. To this end, we undertook a variety of measures to maintain a sound financial base, reinforce and expand our
product and service offerings in order to deliver high-value-added products and high-quality services to each of ourcustomers, and enhance our internal control system.
Consolidated ordinary revenues increased 8.3% year on year, to ¥1,629.1 billion, owing to increases in ordinary revenues
from all the businesses: life insurance, non-life insurance and banking businesses. Consolidated ordinary profit increased
40.4% year on year, to ¥93.8 billion, owing to increases in ordinary profit from all the above businesses. Profit attributableto owners of the parent was up 19.6% year on year, to ¥62.0 billion. Note that a ¥13.2 billion gain on disposal of fixed assets
from a sale of the real estate held for investment in the life insurance business, which was recorded in extraordinary gains in
the fiscal year ended March 31, 2018.

- 2 -Operating results by business segment are as described below.
Ordinary Revenues(Billions of yen)
Year ended
March 31, 2018
(Apr. 1, 2017, to Mar. 31, 2018)Year ended
March 31, 2019
(Apr. 1, 2018, to Mar. 31, 2019)

1,351.2

1,464.3

8.4

Non-life insurance business

110.0

115.1

4.6

Banking business

39.9

46.0

15.2

1,501.2

1,625.4

8.3

Other*1

6.0

6.6

10.2

Intersegment adjustments

(3.6)

(2.9)

－

1,503.6

1,629.1

8.3

Life insurance business

Subtotal

Consolidated

Change (%)

Ordinary Profit(Billions of yen)
Year ended
March 31, 2018
(Apr. 1, 2017, to Mar. 31, 2018)Year ended
March 31, 2019
(Apr. 1, 2018, to Mar. 31, 2019)

Life insurance business

54.1

78.2

44.4

Non-life insurance business

6.5

6.8

4.9

Banking business

7.1

9.5

34.3

67.8

94.7

39.5

Other*1

(1.0)

(1.0)

－

Intersegment adjustments*2

0.0

0.1

227.9

66.8

93.8

40.4

Subtotal

Consolidated*1: “Other” consists of nursing care business and venture capital operations.

*2: “Intersegment adjustments” of the ordinary profit are mainly due to SFH and eliminations of intersegment transactions.

- 3 -Change (%)

2) Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2020
For the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020), we expect growth to continue, with ongoing
expansion in all businesses.
We forecast increases in ordinary revenues and ordinary profit, owing mainly to the impact of the life insurance business.
Although we expect extraordinary gains to decline, we anticipate that profit attributable to owners of the parent will grow intandem with ordinary profit.
Note: The effects of market fluctuations after April 1, 2019 have not been incorporated in the forecast.
The forecast of consolidated financial results for the year ending March 31, 2020 below remains unchanged from the forecast
announced on April 26, 2019.
(Billions of yen)
(Reference)
Actual results for the year ended
March 31, 2019

Forecast
for the year ending
March 31, 2020

Change (%)

Ordinary revenues

1,629.1

1,690.0

3.7

Ordinary profit

93.8

98.0

4.4

Profit attributable to owners of
the parent

62.0

65.0

4.7

Net income per share (Yen)142.69149.42－

Forecast by business segment is as follows.
<Life insurance business>
We expect ordinary revenues to increase from FY2018, due mainly to a steady rise in insurance premium revenues.
We also expect ordinary profit to rise in line with growth in the policy amount in force, despite the increased provision ofpolicy reserves stemming from a decrease in surrenders. Also, although we booked an impairment loss relating to availablefor-sale securities in the general account in FY2018, no equivalent loss is included in our forecast for FY2019.
(Billions of yen)
(Reference)
Actual results for the year ended
March 31, 2019

Forecast
for the year ending
March 31, 2020

Change (%)

Ordinary revenues

1,464.3

1,520.5

3.8

Ordinary profit

78.2

84.2

7.7

<Non-life insurance business>
We expect ordinary revenues to increase from FY2018, in line with growth in net premiums written, primarily for automobile
insurance. We expect ordinary profit will remain flat. We anticipate higher revenues from automobile insurance, andanticipate the impact of a temporary accumulation of policy reserves for a certain product in FY2018 will disappear. At thesame time, however, we expect the provision for underwriting reserves to rise in line with an increase in the acquisition of fire
insurance policies.
(Billions of yen)
(Reference)
Actual results for the year ended
March 31, 2019

Forecast
for the year ending
March 31, 2020

Change (%)

Ordinary revenues

115.1

121.2

5.3

Ordinary profit

6.8

7.0

1.5

<Banking business>- 4 -We expect ordinary revenues to rise year on year due to stable business growth stemming from the steady ongoingaccumulation of mortgage loans and the strengthening of the foreign currency business. Although we anticipate a rise in grossoperating profit in line with revenue growth, we expect ordinary profit to decrease year on year due to a rise in operating
expenses.
(Billions of yen)
(Reference)
Actual results for the year ended
March 31, 2019

Forecast
for the year ending
March 31, 2020

Change (%)

Ordinary revenues

46.0

49.3

7.1

Ordinary profit

9.5

8.6

(10.4)

2. Qualitative Information on Consolidated Financial Position
1) Assets, Liabilities and Net Assets
As of March 31, 2019, total assets amounted to ¥13,468.2 billion, up 8.6％ from March 31, 2018. Among major components
of assets, securities, mostly Japanese government bonds, amounted to ¥10,373.1 billion, up 8.3％ from March 31, 2018.
Loans came to ¥1,942.5 billion, up 8.8％.
Total liabilities were ¥12,811.3 billion, up 8.8％ from March 31, 2018. Major components of liabilities included policy
reserves and others of ¥9,479.0 billion, up 8.2％, and deposits totaled ¥2,302.3 billion, up 6.6％.
Total net assets were ¥656.8 billion, up 5.0％ from March 31, 2018. This included net unrealized gains on available-forsale securities, net of taxes, which decreased ¥5.1 billion, to ¥128.8 billion.

2) Cash FlowsNet cash provided by operating activities for the year ended March 31, 2019, was ¥802.9 billion, primarily due to income
from insurance premiums in the life insurance business. The amount of net cash provided was down 16.8 billion (2.0%) year
on year, mainly because of an increase in mortgage loans and other lending in the banking business.
Net cash used in investing activities was ¥659.8 billion, mainly because payments to acquire marketable securities
exceeded proceeds from sale and redemption of securities in the life insurance and banking businesses. The amount of net
cash used decreased ¥21.0 billion (3.1%), year on year because of an increase in proceeds from net increase in collateral for
securities lending transactions in the life insurance business during the year under review compared with an increase in theprevious fiscal year.
Net cash used in financing activities came to ¥26.6 billion because of payments for cash dividends. Net cash used in these
activities was up ¥12.1 billion (83.8%) year on year, due to proceeds from issuance of bonds in the previous year.
As a result of the above factors and others, cash and cash equivalents at March 31, 2019, amounted to ¥509.5 billion, up¥116.4 billion (29.6%) from March 31, 2018.

Please refer to the attached presentation materials for non-consolidated operating results of SFH’s principal subsidiaries, Sony
Life, Sony Assurance and Sony Bank for the year ended March 31, 2019.

- 5 -II. Status of the Corporate GroupThe Sony Financial Group is composed chiefly of Sony Life, Sony Assurance and Sony Bank. These companies are direct
subsidiaries of SFH, the financial holding company.
The Sony financial Group are positioned as shown in the following organizational chart.
[Organizational chart] (As of March 31, 2019)III. Basic Views on Selection of Accounting Standards
SFH’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in Japan. SFH
is considering whether to adopt International Financial Reporting Standards (“IFRS”) while closely monitoring the developmentof new accounting standards and the stance of regulatory bodies at home and abroad.

- 6 -IV. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019¥¥

AssetsCash and due from banks

327,633

415,894

Call loans and bills bought

65,50093,700

Monetary claims purchased

5,378

4,916

291,582

291,324

Securities

9,581,206

10,373,188

Loans

1,785,877

1,942,546

106,051

104,128

Land

63,106

63,106

Buildings

32,46830,899Leased assets

6,074

6,536

5

77

4,397

3,508

Money held in trust

Tangible fixed assets

Construction in progress
Other tangible fixed assets
Intangible fixed assets

35,68443,909Software35,05943,327

Goodwill

583

551

0

－

Leased assets

40

30

Due from reinsurers

Other intangible fixed assets

934

1,341

Foreign exchanges

9,346

8,471

168,736

159,361

Other assets
Net defined benefit asset

3,426

3,476

Deferred tax assets

21,242

27,556

Reserve for possible loan losses(1,152)(1,602)

Total Assets

¥

- 7 -

12,401,446¥

13,468,215

(Millions of yen)
As of March 31, 2018

As of March 31, 2019¥¥

Liabilities
Policy reserves and others
Reserve for outstanding claims

8,763,349

9,479,071

74,71278,285

8,683,153

9,396,241

5,484

4,544

Due to agencies

1,873

2,073

Due to reinsurers

5,563

5,769

Policy reserves
Reserve for policyholders’ dividends

Deposits

2,159,246

2,302,313

Call money and bills sold

96,000130,611

Borrowed money

173,944

203,871

Foreign exchanges

228

244

Bonds payable

20,00020,000

Other liabilities

470,501

578,477

Reserve for employees’ bonuses

3,906

4,377

Net defined benefit liability

33,17934,081

Reserve under the special laws

48,13550,343

Reserve for price fluctuations

48,13550,343

0

24

109

109

11,776,039

12,811,368

Common stock

19,927

19,963

Capital surplus

191,157

191,193

Retained earnings

283,911319,886

(55)

(55)

494,941

530,987

133,991

128,800

Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets

Treasury Stock
Total shareholders’ equity
Net unrealized gains (losses) on available-for-sale securities, net oftaxes
Net deferred gains (losses) on hedging instruments, net of taxes(902)(1,077)

Land revaluation, net of taxes(2,439)(2,439)Remeasurements of defined benefit plans, net of taxes(1,929)(1,470)Total accumulated other comprehensive income

128,719

123,812

Subscription rights to shares

97

149

Non-controlling interests

1,648

1,896

625,406

656,846

Total Net Assets
Total Liabilities and Net Assets

¥

- 8 -

12,401,446¥

13,468,215

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Ordinary Revenues
Ordinary Revenues from the Life Insurance Business

For the year ended
March 31, 2018

For the year ended
March 31, 2019¥¥

1,503,630

1,629,182

1,347,762

1,461,632

1,057,411

1,134,048

1,054,867

1,130,676

2,544

3,372

242,703

278,950

157,276

166,953

4,490

4,490

Gains on trading securities, net

2－

Gains on sale of securities

0

6,107

Gains on redemption of securities

1－

Foreign exchange gains, net－

13,455

Other investment income

1－80,931

87,94347,646

48,633110,091

115,101

108,316

113,173108,253

113,101

62

72

1,731

1,857

1,324

1,372

Gains on sale of securities

470

557

Transfer to interest and dividends on deposits of premiums

(62)

(72)

43

69

39,71245,766

Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends
Income from money held in trusts, net

Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income
Interest income and dividends

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

28,34431,926

Interest income on loans

17,064

17,473

Interest income and dividends on securities

11,204

14,382

Interest income on call loans and bills bought

2

1Interest income on deposits with banks

63

62

Other interest income

97Fees and commissions

6,751

9,398

Other operating income

3,823

3,926

3,456

3,599

366

326

794

515

6,064

6,681

Gains on foreign exchange transactions, net
OthersOther ordinary income
Other
Other ordinary income

6,064

6,681
(Continued)- 9 -(Millions of yen)

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the year ended
March 31, 2018

For the year ended
March 31, 2019¥¥

1,436,787

1,535,325

1,296,417

1,386,074

436,538

457,252

Insurance claims

92,342

92,997

Annuity payments

12,566

13,489Insurance benefits

119,294

131,824

Surrender payments

199,263

204,351

Other payments

3,314

3,659

Reinsurance premiums

9,756

10,929638,343704,780

2,211

2,433

636,131702,34600Investment expenses

32,88924,650Interest expenses

151

1,604

Losses on trading securities, net－

126

Losses on sale of securities

034

Losses on valuation of securities

－

4,026

Losses on redemption of securities

2－

Losses on derivatives, net

11,403

13,925

Foreign exchange losses, net

15,280－Insurance claims and other payments

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends

Provision for reserve for possible loan losses

23

329

Depreciation of real estate for rent and others

1,680

1,599

Other investment expenses

4,346

3,003

Operating expenses

139,420

146,776

Other ordinary expenses

49,226

52,614

Ordinary Expenses from the Non-life Insurance Business

102,798

107,413

Underwriting expenses

73,94377,925Net losses paid

52,48256,608Loss adjustment expenses

8,067

8,220

Net commission and brokerage fees

1,295

1,214

Provision for reserve for outstanding losses and claims

1,194

1,139

Provision for underwriting reserves

10,903

10,741

Investment expenses

2

1

Losses on sale of securities－

0

Other investment expenses

2

1

28,84829,482

Operating, general and administrative expenses
Other ordinary expenses

4

4(Continued)- 10 -

(Millions of yen)

Ordinary Expenses from the Banking Business

For the year ended
March 31, 2018

For the year ended
March 31, 2019¥¥

Interest expenses

30,42834,135

7,656

8,566

5,320

6,744

Interest expenses on call money and bills sold

(73)

88

Interest on payabales under repurchase agreements－

312

Interest expenses on deposits

Interest on borrowed money

00Interest expenses on bonds

40

12

2,360

1,400

8

7

Fees and commissions

4,676

5,883

Other operating expenses

105

485

17,733

18,786

257

414

7,141

7,702

7,141

7,702

Ordinary Profit

66,84393,856Extraordinary Gains

13,2580Interest expenses on interest rate swaps
Other interest expenses

General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses

Gains on disposal of fixed assets
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses

13,258

0

2,180

2,367

187

92

2

67

Provision for reserve under the special laws

1,953

2,207

Provision for reserve for price fluctuations

1,953

2,207

36

－

Provision for Reserve for Policyholders’ Dividends

3,271

2,146

Income Before Income Taxes

74,65089,343

Income Taxes - Current

29,00831,871

Income Taxes - Deferred(6,344)(4,853)

Total Income Taxes

22,66427,018

Profit51,98562,32590

250

OthersProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent¥- 11 -

51,895¥62,074

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Profit

For the year ended
March 31, 2018

For the year ended
March 31, 2019¥¥

51,98562,325

Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, netof taxes(857)(5,215)Net deferred gains (losses) on hedging instruments, net of taxes

251

(174)

Remeasurements of defined benefit plans, net of taxes

827

456

Share of other comprehensive income of affiliates accounted forusing equity method－

23

Total other comprehensive income

221(4,909)Comprehensive income¥

52,207¥57,415(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 12 -

52,11657,16791

248

3. Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2018
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

Treasury stock¥ 19,900¥ 195,277¥ 255,062

Issuance of new shares

27

27

Dividends from surplus－¥

Total shareholders’ equity(81)¥ 470,157

－

－

55

－

(23,922)－(23,922)－－

51,895－51,895

－

(5)

－

26

21

－

5

(5)

－

－

－

－

973

－

973

－

－

(92)

－

(92)

－

(4,147)－－(4,147)

－

－

－

－

－

27

(4,119)28,84926

24,784¥ 19,927¥ 191,157¥ 283,911(55)¥ 494,941

Changes during the period

Profit attributable toowners of the parent
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
shares
Reversal of land
revaluation
Adjustments due tochange of scope of
consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥(Continued)- 13 -

Total accumulated other comprehensive income
Net unrealized Net deferred gains
Total accumulated Subscription rights Non-controlling
gains (losses) on(losses) on
Remeasurements
Land revaluation,otherto shares
interests
available-for-salehedgingof defined benefit
net of taxes
comprehensive
securities,
instruments,
plans, net of taxes
incomenet of taxes
net of taxes

Balance at the beginning of
the period¥ 134,849¥(1,154) ¥(1,465) ¥(2,756) ¥ 129,472

¥

49

¥

Total net assets

1,460¥ 601,139

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

55

Dividends from surplus

－

－

－

－

－

－

－

(23,922)

－

－

－

－

－

－

－

51,895

－

－

－

－

－

－

－

21

－

－

－

－

－

－

－

－

－

－

－

－

－

－

－

973

－

－

－

－

－

－

－

(92)

－

－

－

－

－

－

－

(4,147)

(857)

251

(973)

827

(752)

48

187

(516)

(857)

251

(973)

827

(752)

48

187

24,267(902) ¥

(2,439) ¥1,648¥ 625,406

Profit attributable toowners of the parent
Disposal of treasury
sharesTransfer of loss on
disposal of treasury
shares
Reversal of land
revaluation
Adjustments due tochange of scope of
consolidation
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥ 133,991¥- 14 -(1,929) ¥ 128,719

¥

97

¥

For the year ended March 31, 2019
(Millions of yen)
Shareholders’ Equity
Common stock

Balance at the beginning of
the period

Capital surplus

Retained earnings

Treasury stock¥ 19,927¥ 191,157¥ 283,911

Issuance of new shares

35

35

Dividends from surplus－¥

Total shareholders’ equity(55)¥ 494,941

－

－

71

－

(26,099)－(26,099)－－

62,074－62,074

－

－

－

－

－

35

35

35,975－36,046¥ 19,963¥ 191,193¥ 319,886(55)¥ 530,987

Non-controllinginterests

Total net assets

Changes during the period

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod¥Total accumulated other comprehensive income
Net unrealized Net deferred gains
Total accumulated Subscription
gains (losses) on(losses) on
Remeasurements
Land revaluation,otherrights to sharesavailable-for-salehedgingof defined benefit
net of taxes
comprehensive
securities,
instruments,
plans, net of taxes
incomenet of taxes
net of taxes

Balance at the beginning of
the period¥ 133,991 ¥(902) ¥

(2,439) ¥(1,929) ¥ 128,719 ¥97 ¥1,648 ¥

625,406

Changes during the period
Issuance of new shares

－

－

－

－

－

－

－

71

Dividends from surplus

－

－

－

－

－

－

－

(26,099)

－

－

－

－

－

－

－

62,074(5,191)

(174)

－

458

(4,907)52

248(4,606)(5,191)

(174)

－

458

(4,907)52

248

31,439¥ 128,800 ¥(1,077) ¥(2,439) ¥149 ¥1,896 ¥

656,846

Profit attributable toowners of the parent
Net changes of items
other than shareholders’equityTotal changes during theperiodBalance at the end of theperiod- 15 -(1,470) ¥ 123,812 ¥4. Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2018

For the year ended
March 31, 2019¥¥

Cash flows from operating activities
Income before income taxes

74,65089,343

Depreciation of real estate for rent and others

1,680

1,599

Depreciation and amortization

11,828

11,2972

67

Impairment losses
Amortization of goodwill

32

32

3,405

3,573

647,035

713,08800Provision for (reversal of) reserve for policyholders’ dividends

3,271

2,146

Increase (decrease) in reserve for possible loan losses

(140)

449

Increase (decrease) in net defined benefit liability

2,363

1,630

Increase (decrease) in reserve for directors’ retirement benefits

(176)

－

Increase (decrease) in reserve for outstanding claims
Increase (decrease) in policy reserve
interest portion of reserve for policyholders’ dividends

Increase (decrease) in reserve for price fluctuations

1,953

2,207

Interest income and dividends(186,943)(200,253)(Gains) losses on securities(80,057)(94,790)

Interest expenses

8,327

10,698Losses (gains) on derivatives

11,403

13,925

Exchange (gains) losses

23,489(17,258)(Gains) losses on disposal of tangible fixed assets(13,283)

78

2,338

1,748

Net (increase) decrease in loans(56,745)(147,727)

Net increase (decrease) in deposits

87,987143,03180,00030,000Net increase (decrease) in call money and bills sold

26,00054,902

Net (increase) decrease in call loans and bills bought(4,805)461

Net (increase) decrease in foreign exchange (assets)(2,077)874

Net increase (decrease) in foreign exchange (liabilities)

119

16

Others, net

15,506

21,467

Subtotal

Equity in (gains) losses of affiliates

Net increase (decrease) in borrowed money (excluding
subordinated borrowings)

657,168

642,611

Interest and dividends received

197,007205,869

Interest paid

(8,484)(10,221)

Policyholders’ dividends paid

(3,517)(3,086)

Income taxes paid

(22,451)(32,251)

819,721

802,921

Net cash provided by (used in) operating activities(Continued)- 16 -

(Millions of yen)
For the year ended
March 31, 2018

For the year ended
March 31, 2019

Cash flows from investing activities
Net (increase) decrease in deposits

¥

5

¥

－

Investments in money held in trust(101)(1,044)

Proceeds from money held in trust

6,532

4,522

(1,104,737)(1,219,208)

Proceeds from sale and redemption of securities

427,925

526,015

Investments in loans(60,315)(63,716)

Collections of loans

28,761

30,341(22,997)

7,389(6,719)27,16632,55348,264(699,092)(640,270)

120,629

162,651

Purchases of tangible fixed assets(2,049)(1,255)

Proceeds from sales of tangible fixed assets

36,700

1

Purchases of intangible fixed assets(12,481)(17,794)

Purchases of securities

Net gains (losses) from the settlement of derivative financial
instruments
Net increase (decrease) in collateral for securities lendingtransactions
Others, net
Total of net cash provided by (used in) investment
transactions
Total of net cash provided by (used in) operating activities andinvestment transactions

Purchase of securities of a non-consolidated subsidiary

(339)

(50)

(3,450)

(300)

(132)

(147)

(680,845)(659,815)

Proceeds from debt borrowing

5,266

4,640

Repayments of debt

(5,133)(4,712)

Cash dividends paid

(23,921)(26,095)

Proceeds from issuance of bonds

19,938－

Payments for redemption of bonds(10,000)

－

(171)

－

(474)

(476)

(14,496)(26,645)(2)

0124,377

116,461373－

268,381393,133

Purchase of securities of affiliates
Others, net
Net cash provided by (used in) investing activities
Cash flows from financing activities

Payments from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Others, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period¥- 17 -

393,133¥

509,594

5. Notes to the Consolidated Financial Statements
1) Note on Going Concern
Not applicable.

2) Segment Information(1) Outline of reportable segments
The Sony Financial Group’ s reportable segments are components of the Group whose operating results are regularly
reviewed by the Board of Directors to make decisions about resources to be allocated to the segments and assess theirperformance, for which discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Ltd., Sony Assurance Inc., Sony Bank Inc., Sony
Lifecare Inc., and Sony Financial Ventures Inc., and pursues financial group strategies. The subsidiaries make their own
business plans and engage in business activities from which they may earn revenues and incur expenses, under the
Insurance Business Law of Japan, the Banking Law of Japan, and other regulations.
The Sony Financial Group consists of three reportable segments: the life insurance business, the non-life insurance
business and the banking business.
●The life insurance business consists of Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd. and SA
Reinsurance Ltd.
●The non-life insurance business consists of Sony Assurance Inc.
●The banking business consists of Sony Bank Inc., Sony Payment Services Inc. and SmartLink Network Hong Kong
Limited.

- 18 -

(2) Segment Information by reportable segment
For the year ended March 31, 2018
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets¥ 1,347,762
3,462
1,351,225¥
54,1489,566,063¥¥¥

110,0911
110,092
6,574
204,395

Bankingbusiness

Total¥

39,712
221
39,934¥7,146
2,651,162¥

1,497,566
3,685
1,501,251¥
67,86912,421,622

Other

¥

¥

Total

6,064
－
6,064
(1,077)
13,532¥ 1,503,630
3,685
1,507,316¥
66,792
12,435,155

7,147
157,743
151

3,927
1,324
－

2,458
28,344
7,731

13,532
187,411
7,883

616
0
516

14,148
187,4118,400(2,338)－－(2,338)－(2,338)12,245－－

12,245－

12,245

9,511

¥

2,660

¥

4,709

¥

16,882¥930¥

17,812For the year ended March 31, 2019
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income and dividends
Interest expenses
Equity in earnings (losses) ofaffiliates
Investments in affiliates
Increase in tangible fixed assets
and intangible fixed assets¥ 1,461,632
2,735
1,464,367¥
78,213
10,380,274

¥

¥

¥

115,1011
115,102
6,897
219,672

Bankingbusiness

Total¥

45,766
252
46,018¥9,597
2,878,879¥

1,622,500
2,988
1,625,488¥
94,70813,478,825

Other

¥

¥

Total

6,681
－
6,681
(1,021)
22,636¥ 1,629,182
2,988
1,632,170¥
93,687
13,501,462

7,847
166,953
1,604

2,457
1,372
－

2,489
31,926
8,643

12,794200,252
10,248631
2507

13,425200,255
10,755(1,748)－－(1,748)－(1,748)

10,969－－10,969－10,969

9,496

¥

5,790

¥

- 19 -

3,977¥

19,264

¥

1,141

¥

20,406

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Millions of yen
For the year ended
March 31, 2018
Totals of reportable segments¥

For the year ended
March 31, 2019
1,501,251
6,064

Other

¥

1,625,488
6,681(3,685)Adjustments for intersegment transactions¥

Ordinary revenues in statement of income(2,988)1,503,630¥

1,629,182

Millions of yen
For the year ended
March 31, 2018
Totals of reportable segments¥

For the year ended
March 31, 201967,869(1,077)

Other
Adjustments for intersegment transactions¥

94,708(1,021)－¥

93,856(133)
185

Amount not allocated to reportable segments¥

Ordinary profit in statement of income

169

66,843
Millions of yen

For the year ended
March 31, 2018
Totals of reportable segments¥

For the year ended
March 31, 201912,421,622¥

13,478,825

Other
Adjustments for intersegment transactions

13,532(70,927)

22,636(66,653)

Amount not allocated to reportable segments

37,21833,406¥

Assets in balance sheets

12,401,446¥

13,468,215

Millions of yen
For the year ended
March 31, 2018
Total
Depreciation

Other

For the year ended
March 31, 2019

Adjustments¥

38

Consolidated
financialstatements

Total¥ 13,532 ¥616Interest income anddividends¥ 14,187 ¥ 12,794 ¥

187,4110(467)

186,944

200,252

Interest expenses

7,883

516

(74)

8,325

Equity in earnings(losses) of affiliates(2,338)－－Investments in affiliates

12,245－－¥ 16,882 ¥

930

Other

Adjustments

631¥

Consolidated
financialstatements

40¥ 13,4662(0)200,255

10,248507(77)

10,678(2,338)(1,748)－－(1,748)12,245

10,969－－10,96969¥ 20,475

Increase in tangible
fixed assets andintangible fixed assets¥

10¥ 17,822 ¥ 19,264 ¥- 20 -

1,141¥

3) Per share data
Yen
For the year ended
March 31, 2018

For the year ended
March 31, 2019

Net assets per share

1,433.73

1,505.20

Earnings per share

119.30142.69Earnings per share（diluted）

119.29142.67(Notes)1. Net assets per share is calculated based on the followings:
Millions of yen, except number of shares
For the year ended
March 31, 2018
Net assets

For the year ended
March 31, 2019

625,406

656,846

1,745

2,045

Stock acquisition rights

1,648

1,896

Non-controlling interests

97

149

623,661

654,800

434,991

435,025

Amount excluded from Net assets

Net assets attributable to common stock at the fiscal year-end
Number of common stock at the fiscal year-end used for the
calculation of Net assets per share (in thousands)

2. Earnings per share and earnings per share (diluted) are calculated based on the followings:
Millions of yen, except number of shares
For the year ended
March 31, 2018

For the year ended
March 31, 2019

Earnings per share
Profit attributable to owners of parents
Amount not attributable to common stockholders
Profit attributable to owners of parents attributable to common
stock
Average number of common stock during the fiscal year
(in thousands)

51,89562,074－－51,89562,074434,979

435,016

－

－

60

87

60

87

Earnings per share(diluted)
Adjustment for profit attributable to owners of parents
Increase in number of common stock (in thousands)
Stock acquisition rights (in thousands)
Outline of dilutive shares which were not included in the calculationof“Earnings per share (diluted)” because they do not have dilutive
effect:4) Subsequent Events
Not applicable.

- 21 -－

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ in significant respects
from the financial information reported by Sony Corporation, SFH’s parent company, which prepares its financial statements inaccordance with U.S. GAAP.
* SFH’s scope of consolidation includes following companies
Consolidated subsidiaries:
Sony Financial Holdings Inc.
Sony Life Insurance Co. Ltd.
Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.**
Sony Financial Ventures Inc.**
SFV・GB L.P**
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.
** Proud Life Inc. is included in the scope of consolidation from the second quarter ended September 30, 2017.
Sony Financial Ventures Inc. is included in the scope of consolidation from the second quarter ended September 30, 2018.
SFV・GB L.P is included in the scope of consolidation from the fourth quarter ended March 31, 2019.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forwardlooking statements may include-but are not limited to-words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,”“assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe future operating activities, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in other materials
released to the public. These forward-looking statements and pro forma information are based on assumptions, decisions andjudgments made by the management of Sony Financial Group companies, and are based on information that is currently available tothem. As such, they are subject to various risks and uncertainties, and actual business results may vary substantially from theforecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue reliance on
forward-looking statements. Sony Financial Group companies are under no obligation to revise forward-looking statements or pro
forma information in light of new information, future events or other findings. The information contained in this press release does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe to any
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever inJapan or abroad.

- 22 -

V. Attachment
Content of Presentation Material
Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 andSony Life’s Preliminary MCEV as of March 31, 2019・ Consolidated Operating Results for the Fiscal Year Ended March 31, 2019 (FY2018) …………………....

3

・ Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2020 (FY2019) ……….

18

・ Dividend Forecast for FY2019………………………………………………………………………………

21

・ Sony Life’s Preliminary MCEV as of March 31, 2019……………………………………………………...

23

・ Appendix …………………………………………………………………………………………………….

26- 23 -

Attachment【Presentation Material】

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2019
andSony Lifeʼs Preliminary MCEV
as of March 31, 2019Sony Financial Holdings Inc.
May 15, 2019

AGENDA
Consolidated Operating Results for the Fiscal Year Ended March 31, 2019
(FY2018)

P. 3

Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2020 (FY2019)

P. 18

Dividend Forecast for FY2019

P. 21

Sony Lifeʼs Preliminary MCEV as of March 31, 2019

P. 23

Appendix

P. 26

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking
statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,”“predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forwardlooking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking
statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group
companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, andactual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors
are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise
forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained inthis presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever in Japan or abroad.
*Unless otherwise indicated, in these materials figures less than the indicated unit have been truncated, while ratios and percentage changes have been rounded.
Also, a “–” is used where percentage changes exceed 1,000% and in cases where one or both comparisons are negative.
* “Lifeplanner” is a registered trademark of Sony Life.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Attachment

Consolidated Operating Results
for the Fiscal Year Ended March 31, 2019
(FY2018)

Highlights of Consolidated Financial Results
All three businesses steadily expanded their business scale.
 On a consolidated basis, both ordinary revenues and ordinary
profit reached record high.
 At Sony Life, both ordinary revenues and ordinary profit grew
year-on-year due mainly to a steady rise in the policy amountin force.
 Consolidated adjusted ROE, an economic value-based profit
indicator, reached 6.7%.
Financial Resultsfor FY2018

We expect that all three businesses will continue to expand
their business scale, sustaining the growth trend.
On a consolidated basis, we anticipate increases in bothordinary revenue and ordinary profit..
 At Sony Life, we expect income from insurance premiums togrow, due to solid growth in the policy amount in force.
 Consolidated adjusted ROE is expected to be Approx. 6%.


Forecast of
Financial Resultsfor FY2019



Shareholder
Returns

In line with our medium-term dividend policy, for FY2019 we
expect to raise the dividend amount by ¥2.5 per sharecompared with FY2018, to ¥65.0, taking into overall accountsuch factors as the operating environment, growth in businessscale, and higher profit based on economic value. We aim tocontinue steadily increasing dividends going forward.
Copyright © Sony Financial Holdings Inc. All rights reserved.

4

Attachment

Highlights of Consolidated Financial Results◆ Ordinary Revenues : Increased owing to increases in ordinary revenues from all thebusinesses: life insurance, non-life insurance, and banking businesses.
◆ Ordinary Profit︓Increased owing to increases in ordinary profit from all the abovebusinesses.
Ordinary Profit

Ordinary Revenues

1,503.6＋8.3%

1,629.1＋40.4%

93.8

66.8(JPY bn)(JPY bn)

FY2017FY2017FY2018FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

5

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓Grew due to higher insurance premiums owning mainly to a steadyrise in the policy amount in force.
◆ Ordinary Profit︓increased year on year due to an increase in profit on higher policies inforce, a recording of gains on sale of securities in the general account, a decline inprovision of policy reserves for products with higher surrenders, and an improvement in
net gains (losses) on derivative transactions to hedge market risks for available-for-salesecurities in the general account, which more than offset the effect of an impairment
loss relating to available-for-sale securities in the general account.
Ordinary Profit

Ordinary Revenues

1,351.0＋8.4%

1,464.2＋41.7%

79.8

56.3(JPY bn)(JPY bn)

FY2017FY2018FY2017FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

6

Attachment

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount︓Increased due to higher sales of family income insurance.
◆ Annualized Premiums from New Policies︓Increased due to higher sales of term life
insurance and variable annuities.
Annualized Premiums from New Policies

Number and Amount of New Policies（Individual life insurance + Individual annuities）（Individual life insurance + Individual annuities）

Annualized premiums from new policies
Of which, third-sector

New policy amount (JPY tn)
Number of new policies (Thousands of policies)609+12.7%

513
4.95

87.9

540

78.1

6.15
5.28

+20.3%+16.3%(JPY bn)

FY201673.0

FY201715.7

12.9

FY2016FY2018+17.5％FY201715.2
FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

7

Operating Performance : Sony Life (Non-consolidated) (2)◆ Lapse and Surrender Rate︓Increased due to certain customers cancelling existing
policies, taking out new policies such as family income insurance since premiums wererevised in line with revisions of the standard mortality tables.
Lapse and Surrender Rate*（Individual life insurance + Individual annuities）

6.06
4.27

4.97
＋1.09pt（%）

FY2016FY2017FY2018*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.
Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Attachment

Operating Performance : Sony Life (Non-consolidated) (3)Number and Amount of Policies in Force（Individual life insurance + Individual annuities）
Policy amount in force (JPY tn)
Number of policies in force (Millions of policies)
+3.7%

7.56

7.30

（Individual life insurance + Individual annuities）

Annualized premiums from insurance in force
Of which, third-sector

7.84

889.3

848.8

820.8

49.5

47.2

45.3

Annualized Premiums from Insurance in Force

＋4.8％

+4.9%

187.4

191.8

Mar. 17Mar. 18

+2.9％

197.5

(JPY bn)

Mar. 17Mar. 18

Mar. 19

Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

9

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓Increased due to an increase in profit on higher policies in force anda decline in provision of policy reserve for products with higher surrenders.
Core Profit and Adjusted Core Profit
Core profit

Adjusted core profit+19.5% 97.2 97.4

83.8
76.2

Average Assumed Interest Rate andInvestment Yield for Core Profit

Reference

Investment yield for core profit
Average assumed interest rate

82.4
81.3

2.24

2.22

2.19

2.00

1.97

1.94

FY2016FY2017FY2018+18.2%（%）(JPY bn)

FY2016FY2017◆ Details of core profit(JPY bn)

FY2016FY2018FY2017FY2018

Positive spread

15.4

17.7

18.2

Provision of policy reserve forminimum guarantees forvariable life insurance (*)(7.8)(18.7)(18.3)

Adjusted core profit (**)

76.2

82.4

97.4

*Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
**Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves
for minimum guarantees for variable life insurance)

Copyright © Sony Financial Holdings Inc. All rights reserved.

10

Attachment

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit︓Increased due to an increase in core profit and a recording of gains
on sale of securities in the general account.
Core Profit and Ordinary Profit
Core profit

83.8
60.1

Ordinary profit+19.5%

97.2

81.3◆ Difference from core profit

79.8+41.7%

56.3(JPY bn)

FY2016FY2017FY2018(JPY bn)

FY2016FY2017FY2018Core profit

83.8

81.3

97.2

Capital gains (losses) excluding gains
or losses on hedges (*)

(0.4)

(9.0)

1.6

Gains (losses) on hedges of variable
life insurance(15.6)

(8.4)

(9.9)

Provision of contingency reserve (**)

(7.2)

(7.4)

(8.6)

Others

(0.1)

(0.1)

(0.4)

Ordinary profit

60.1

56.3

79.8

*Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
** Provision of contingency reserve is described as negative amount.

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Operating Performance : Sony Life (Non-consolidated) (6)

Number of Lifeplanner Sales Employees
＋22

4,933

4,942

4,974

4,968

Mar. 17

Jun. 17

Sep. 17

Dec. 17

5,142

5,135

5,147

5,164

5,106
+58

（Number）

Mar. 18

Jun. 18

Sep. 18

Dec. 18

Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

12

Attachment

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues︓Rose due to an increase in net premiums written for mainstay
automobile insurance.
◆ Ordinary Profit︓Up due to a lower expense ratio and higher revenues, despite a risein the loss ratio stemming from natural disaster damage and the recording ofadditional policy reserves for a certain product.
Ordinary Profit

Ordinary Revenues
110.0

＋4.6%

115.1

6.8

＋4.9%

6.5

(JPY bn)(JPY bn)

FY2017FY2018FY2017FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

13

Operating Performance : Sony Assurance (1)◆Net Premium Written︓Increased due to stable sales of automobile insurance.
Ordinary Profit andAdjusted Ordinary Profit

Net Premium Written
Voluntary automobile insurance
Others100.2

Adjusted ordinary profit

Ordinary profit

Personal accident insurance

113.1

108.2

10.5

10.0

＋4.5%

＋5.6%

8.1

6.8

6.5
4.9

＋4.9%

xx
(JPY bn)

FY2016FY2017FY2018*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)（Reference) Provision for catastrophe reserve

FY2016FY2017FY2018

Note: Most of personal accident insurance is medical insurance.

（JPY bn）

Provision for catastrophe reserve

FY2016FY2017FY2018

3.1

3.4

3.6

*Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

14

Attachment

Operating Performance : Sony Assurance (2)◆ Earned/Incurred (E.I.) Loss Ratio︓Up due to natural disasters.
◆ Net Expense Ratio︓Down due mainly to a decrease in system-related expenses.
Sum of Two Ratios（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

90.6

Reference

Net loss ratio

Net expense ratio

89.1

89.2

Combines Ratio（Net Loss ratio＋ Net Expense Ratio）
Net expense ratio

85.8

84.4

(0.1pt)＋0.7pt

61.3

60.7

62.3

85.1

57.5

＋0.6pt55.9

57.3＋1.4pt(0.7pt)(0.7pt)

28.3

28.5

27.8

FY2016FY2017FY2018（%）

Notes:
E.I. loss ratio = (Net losses paid + Provision for reserve foroutstanding losses + Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]

（%）

28.3

28.5

27.8

FY2016FY2017FY2018Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written
Copyright © Sony Financial Holdings Inc. All rights reserved.

15

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues and Ordinary Profit︓Rose due mainly to increases in interest income
on investment securities and on loans in line with a growing balance of mortgage loans.

Ordinary Profit

Ordinary Revenues

39.9＋15.2%

46.0

7.1＋33.6%

9.5(JPY bn)(JPY bn)

FY2017FY2018FY2017FY2018

Copyright © Sony Financial Holdings Inc. All rights reserved.

16

Attachment

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓Increased due mainly to an increase in newly accumulated funds via the increased
number of accounts.
・Foreign Currency Deposits︓Increased due mainly to the launch of the “Set Time Deposits Program,”
which simultaneously employs yen and foreign currency time deposits.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage loans.
Loans Outstanding
Customer Assets
35,000Mortgage loans

Investment trusts
Foreign currency deposit
Yen deposits
Number of accounts (Millions of accounts)
+0.12
1.47

30,00025,00020,0001.24

2,227.1
114.1
348.0

1.35

2,343.0

2,483.3
124.3

123.7
404.6

1,539.6+140.2

419.6

87.1

Others

1,596.3
70.7

1,744.1

53.7**Corporate loansof ¥35.4 billion,+147.7

Card loans of¥18.3 billion.

100

15,0001,690.3

10,0001,764.9

1,814.7

1,452.4

1,939.3

1,525.5

5,000(JPY bn)00Mar. 17Mar. 18

Mar. 19(JPY bn)

Mar. 17Mar. 18

Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2020
(FY2019)

17

Attachment

Forecast of Consolidated Financial Results for FY2019
Ordinary revenues, ordinary profit and profit attributable to owners of the parent are expected to increase
For FY2019, we expect stable business growth to continue in all the businesses◆Life insurance businessWe expect ordinary revenues to increase from FY2018, due mainly to a steady rise in insurance premium revenues.
We also expect ordinary profit to rise in line with growth in the policy amount in force, despite the increased provision ofpolicy reserves stemming from a decrease in surrenders. Also, although we booked an impairment loss relating to availablefor-sale securities in the general account in FY2018, no equivalent loss is included in our forecast for FY2019.
◆Non-life insurance businessWe expect ordinary revenues to increase from FY2018, in line with growth in net premiums written, primarily for automobile
insurance. We expect ordinary profit will remain flat. We anticipate higher revenues from automobile insurance, andanticipate the impact of a temporary accumulation of policy reserves for a certain product in FY2018 will disappear.
At the same time, however, we expect the provision for underwriting reserves to rise in line with an increase in theacquisition of fire insurance policies.
◆Banking businessWe expect ordinary revenues to rise year on year due to stable business growth stemming from the steady ongoingaccumulation of mortgage loans and the strengthening of the foreign currency business.
Although we anticipate a rise in gross operating profit in line with revenue growth, we expect ordinary profit to decrease
year on year due to a rise in operating expenses rise.
（JPY bn）

FY2018（Actual）

Ordinary revenues
Life insurance business

FY2019（Forecast）

Change1,629.1

1,690.0+3.7%

1,464.3

1,520.5

+3.8%

115.1

121.2

+5.3%

Non-life insurance businessBanking business

46.0

49.3

+7.1%

93.8

98.0

+4.4%

Life insurance business

78.2

84.2

+7.7%

Non-life insurance business

6.8

7.0

+1.5%

9.5

8.6

(10.4%)

62.0

65.0

+4.7%

Ordinary profit

Banking businessProfit attributable to owners of the parents

Copyright © Sony Financial Holdings Inc. All rights reserved.

19

Analysis on Ordinary Profit

+4.0

+0.1

(0.9)

(1.0)

98.0

Others**Baking business

Non-life business

OthersIncrease in profit
owing to growing
policy amount inforce

Increase in provision ofpolicy reserves owing tolower surrender

93.8

(1.0)
Recording a impairment loss
relating to available-for-salesecurities in FY2018

+7.0

(4.0)

＋6.0
Life insurance business*(JPY bn)

FY2018(consolidated)

FY2019(Forecast）*Assumption
・Market environment︓At the level as of Mar. 19
・Gains on sale of securities : Approx. ¥4.0 billion**Others include total of profit and loss of SFH, the nursing care business,and the venture capital business as well as intersegment adjustment

Copyright © Sony Financial Holdings Inc. All rights reserved.

20

Attachment

Dividend Forecast for FY2019

Dividend Forecast for FY2019◆ Medium-term Dividend Policy︓Unchanged
We aim for steady increases in dividends in line with earnings growth over the medium tolong term, while securing sufficient internal reserves to ensure the financial soundness ofGroup companies and to invest in growth fields. Management will examine earnings growthover the medium to long term by placing more importance on economic value-based profit
indicators that are more suitable for evaluating the growth of the life insurance business,in addition to statutory profit. Furthermore, management will determine specific dividend
amounts for each year by taking into account a comprehensive range of factors surrounding
the Group.
◆ Dividend Results／Forecast
Dividends for FY2018 are expected to be ¥62.5 per share.
For FY2019, after considering the business environment, the expansion of the Groupʼsbusiness volume and the level of economic value-based profit growth, we forecast
dividends of ¥65.0 per share, an increase of ¥2.5 from the planned dividends of FY2018.
Consolidated adjusted ROE, an economic value-based profit indicator, is expected to be
Approx. 6% for FY2019.
FY2015
Dividend per share¥55.0

FY2016¥55.0

FY2018（Plan）FY2017
¥60.0

¥62.5

FY2019（Forecast）¥65.0*Please refer to page 27-29 for details of consolidated adjusted ROE.
Copyright © Sony Financial Holdings Inc. All rights reserved.

22

Attachment

Sony Lifeʼs Preliminary MCEV
as of March 31, 2019
Please keep in mind that the validity of these calculations has not been verified by outside specialists as of March 31, 2019.
The calculation of MCEV as of March 31, 2019, in accordance with the MCEV principles and verified by outside specialists,
is scheduled to be announced on May 20, 2019.
A part of the calculations of MCEV adopted simplified method for that as of December 31, 2018.
*Also in this part, figures less than the indicated unit have been truncated from March 31, 2019.

Sony Lifeʼs MCEV
◆ Reasons for Changes in MCEV
・MCEV as of March 31, 2019 increased ¥55.6 billion from December 31, 2018, due mainly to anassumption changes and an acquisition of new policies, despite a decrease in interest rates inJapanese yen.
◆ New Business Value / New Business Margin
・New business margin for FY18.4Q(3M) was down 2.2pt from FY18.3Q(3M), due to changes in productmix(including premium revisions in January 2019) and a decrease in interest rates.
・New business value for FY18.4Q(3M) was ¥23.1 billion, due to a steady acquisition of new policies.
（JPY bn）
MCEV

Mar. 18

Dec. 18

Mar. 19

ChangefromMar. 18

ChangefromDec. 18

1,633.1

1,664.6

1,720.2

+87.1

+55.6

Adjusted net worth

1,786.1

1,824.0

2,195.7+409.6+371.7

Value of existing
business(152.9)(159.4)(475.5)(322.5)(316.0)（JPY bn）

FY17.4Q(3M)

FY18.1Q(3M)

FY18.2Q(3M)

FY18.3Q(3M)

FY18.4Q(3M)

FY18.4Q(12M)

New business value

21.1

21.9

22.6

23.6

23.1

91.3

New business margin

6.1%

7.1%

6.9％

7.3％

5.0%

6.4％

Notes:
1. Calculated MCEV as of December 31, 2018 by using updated mainly economic assumptions and lapse and surrender rates from March 31, 2018.
2. New business value and new business margin are calculated accumulating new business value for each month based on economic assumptions at theend of each month. The figures for FY18 onward reflect the revision in the insurance risk measurement method and others which revised in March 31,
2018. For details of the revision in the insurance risk measurement method and others, please refer to the Presentation Materials “Consolidated Financial
Results for the Fiscal Year Ended March 31, 2018 and Sony Lifeʼs Preliminary MCEV as of March 31, 2018.”*Please refer to page 42-45 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

24

Attachment

Reconciliation Analysis of Sony Lifeʼs MCEV

Numerators ofcore ROEV+106.4+91.3

1,606.9

1,720.2

New business
value

Dividend
payments toshareholder

Assumption changes(26.2)

Expected existing
business contribution

1,633.1

+15.0

+6.9

(JPY bn)

MCEV
as of Mar. 18

MCEV
as of Mar. 18(after dividends paid)

MCEV
as of Mar. 19

Note: Details on assumption changes : Insurance-related assumption changes:+¥69.6 billion, economic variances changes :(62.6) billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

25◆Sony Financial Group
Detail of Consolidated Adjusted ROE
Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Calculation of Consolidated Adjusted ROE
Update of Major KPIs
Financial Soundness
Results of Cross-selling

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value
ESR
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company（Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankAttachment

Detail of Consolidated Adjusted ROE

FY2017FY2018

Consolidated Adjusted ROE

6.1％

6.7%

(Sony Life) Core ROEV

5.9％

6.4%

(Sony Assurance) Adjusted ROE

16.1％

15.2%

(Sony Bank) ROE

5.5％

7.3%

Note: The figures for FY2017 excluded the impact of the revision in the insurance risk measurement method and others for Sony Life.

Copyright © Sony Financial Holdings Inc. All rights reserved.

Detail of Consolidated Adjusted Profit andConsolidated Adjusted Capital
Adjusted profit（Numerator)
Sony Financial Group（consolidated）(JPY bn)
Adjusted profit(consolidated)
Sony Life(non-consolidated)

FY2017

98.8(JPY bn)

FY2017FY2018120.4
FY2018New business value *1

70.4

91.3

Expected existing business
contribution *1

16.3

15.0

Adjusted profit

86.7

106.4

Sony Assurance(JPY bn)

FY2017FY2018Adjusted capital (Denominator）
Sony Financial Group(JPY bn)（consolidated）

FY2017FY2018Adjusted capital(consolidated)

1,607.6

1,801.8

FY2017FY2018Sony Life(non-consolidated)(JPY bn)①MCEV as of the beginning of
the fiscal year

1,441.0

1,633.1

23.1

26.2

③MCEV as of the end of theperiod *2

1,536.5

1,720.2

Adjusted capital（①－②＋③）/２

1,477.2

1,663.5②Dividends paid

Net income

4.8

4.9

Provision amount forcatastrophe reserve (after tax)

2.4

2.6

33.1

34.7

Provision amount for reservefor price fluctuations (after tax)

①The average amount of net
assets during the period

0.0

0.0

Adjusted profit

7.3

7.6

②The average amount ofcatastrophe reserve (aftertax) during the period

15.0

17.7

③The average amount ofreserve for price fluctuations(after tax) during the period

0.1

0.1

Adjusted capital （①＋②＋③）

45.2

50.5

Sony Bank(consolidated)(JPY bn)

Profit attributable to ownersof the parent

FY20174.7

FY20186.3

27Sony AssuranceSony Bank(consolidated)(JPY bn)(JPY bn)

Adjusted capital（The averageamount of net assets during
the period）*1. Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY2018.
*2. Please keep in mind that the validity of these calculations has not been verified by outside specialists.
Note: The figures for FY2017 excluded the impact of the revision in the insurance risk measurement method and others for Sony Life.

FY2017FY201785.1

FY2018FY2018
87.6

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Attachment

Calculation of Consolidated Adjusted ROE
Since each company of Sony Financial Group differs by industry such as insurance and banking,each group company calculate its “Adjusted ROE” based on adjusted profit and adjusted capital
to realize its corporate value and capital efficiency.

Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

Numerator(Adjusted
profit)New business value +Expected existing business
contribution

Net income (loss) + Provision
amount for catastrophe
reserve and its provision
amount for reserve for pricefluctuations, in each case②
after taxes＋

Denominator(Adjusted
capital)MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of the endof the fiscal year, divided bytwo.

The average amount of net
assets plus the sum ofcatastrophe reserve and its
reserve for price fluctuations
during the fiscal year,
in each case after taxes ⑤

＋

＋

①

＋

④

Sony Bank
ROE
Profit (loss) attributable toowners of the parent③

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥
Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Update of Major KPIs

Sony Life
Policy Amount in Force *1

45.3

47.2

49.5

（JPY tn ）Mar. 17

99.0

107.0

Mar. 19

Retail Balance*2

112.1
3.7

（JPY bn）

Mar. 18

Sony Bank

Sony Assurance
Direct Premiums Written

3.9

4.2

（JPY tn）

FY2016FY2017FY2018Mar. 17Mar. 18

Mar. 19*1 Individual Life Insurance + Individual Annuities*2 Sum of yen deposits, foreign currency deposits, investment trusts, securities brokerage, mediated discretionary investment contracts and personal loans
Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Attachment

Financial Soundness（%）

Sony Life (non-consolidated)
Solvency margin ratio

Mar. 18

Mar. 19

Change from
Mar. 18

2,624.3%

2,590.5%(33.8pt)

Sony Assurance
Solvency margin ratio

782.1%

813.0%+30.9pt

Sony Bank (non-consolidated)
Capital adequacy ratio (domestic standard)

10.45%

9.58％(0.87pt)（%）

Sony Bank (non-consolidated）
Non-performing assets ratio（based on Financial Reconstruction Law）

Mar. 18

Mar. 190.12%

Change from
Mar. 180.12%+0.00pt

Note: Non-performing loans (loans based on the Financial Reconstruction Act) /Total loan exposure

Copyright © Sony Financial Holdings Inc. All rights reserved.

31

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 10% of the amount of new mortgage loans for FY2018
Sony Life accounts for 17% of the balance of mortgage loans as of March 31, 2019※Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 5% of new automobile policies for FY2018※Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

32

Attachment

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)

FY2017FY2018¥73.0 billion¥87.9 billion
Yen whole
life 3%

Yen whole
life 6%

U.S. dollardenominatedsingle-premium
whole life
insurance 6%
U.S. dollardenominatedWhole life
13%

Savings typeproducts
29%

U.S. dollardenominatedwhole life
13%

Saving typeproducts
27%

U.S. dollardenominatedsingle- premium
whole life
insurance 7%

Protection-type（term-life）
50％

Protection-type（term-life）
47％

Note: Savings type products = Endowment・Annuities・Educational endowment insurance
Copyright © Sony Financial Holdings Inc. All rights reserved.

33

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)

FY2017FY2018Japanesestocks0.2%

Japanesestocks0.5%Foreign bonds

Foreign bonds

18.5%

23.5%
JGBs

Japanese corporate

55.1%

bonds
25.9%

Japanese
corporate
bonds
社債

JGBs
63.6%

25.9%

社債
11.9%

12.7%

国債
85.3%
Notes:
1. Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
2. The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Attachment

Sony Lifeʼs General Account Assets(Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 18

Mar. 19

Amount%Amount%Japanese bonds(including JGBs)

7,281.1

86.3%

7,745.3

85.3%

Japanese stocks

38.4

0.5%

28.6

0.3%

Foreign bonds

366.5

4.3%

542.1

6.0%

Foreign stocks

30.3

0.4%

22.5

0.2%

Money held in trust

270.5

3.2%

269.3

3.0%

Policy loans

189.4

2.2%

198.3

2.2%

Real estate*

92.3

1.1%

90.8

1.0%

Cash and call loans

40.8

0.5%

61.9

0.7%

Others

129.1

1.5%

120.2

1.3%

8,438.8

100.0%

9,079.4

100.0%（JPY bn）

Total◆ Bond duration
Mar. 17 : 21.3 years
Mar. 18 : 21.4 years
Mar. 19 : 21.8 years◆ Investment in the money held in trustis mainly into Japanese bonds.
◆ The holding ratio on the real status ofJapanese bonds including those invested
in money held in trust in the generalaccount :Mar. 17 : 90.1%
Mar. 18 : 89.5%
Mar. 19 : 88.3%*Real estate is the total of land, buildings, and construction in progress.
Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Interest Income and Dividends (Details)(JPY mn)

FY2017

Cash and deposits

FY2018Change00(49.3%)

Japanese bonds(including JGBs)

125,271

129,930＋3.7%

Japanese stocks

566

556

(1.7%)

13,975

19,906＋42.4%

621

340(45.3%)

Loans

6,610

6,828

＋3.3%

Real estate

10,2858,831(14.1%)

395

543＋37.4%

157,727

166,937＋5.8%

Foreign securities
Other securities

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

Attachment

Sony Lifeʼs Capital Gains (Losses)（JPY mn）

FY2017

Capital losses

FY201827,357

27,847

8

144

Gains on sale of securities…(3)Foreign exchange gains, net

Losses on trading securities, net
Losses on sale of securities…(3)034Devaluation losses on securities…(4)

－

4,026

11,403

13,925Losses on hedges of variable life
insurance…(1)

8,424

9,983

Losses on hedges of available-for-salesecurities…(2)

4,350

(246)

(2,004)

4,072

15,280－15,465

－

664

9,716

－

9,716

Losses on derivatives, net

Losses on U.S. dollar-denominatedinsurance…(5)Foreign exchange losses, net
Losses on U.S. dollar-denominatedinsurance…(5)（JPY mn）
Capital gains

Other capital losses
Losses on U.S. dollar-denominatedinsurance（the provision of policy
reserves for foreign exchange
fluctuations)…(5)FY2017FY2018

9,894

Gains on U.S. dollar- denominatedinsurance (foreign exchange gains inseparate account）…(5)Other capital gains
Gains on U.S. dollar-denominatedinsurance（the reversal of policy
reserves for foreign exchange
fluctuations)…(5)Net capital gains (losses)

19,562

0

6,107

－

13,455－

13,331

9,894

－

9,894

－

(17,463)(8,284)

Note: The figures of income (losses) from trading securities, net, gains (losses)
on derivatives and foreign exchange gains (losses), net were recorded
after offsetting gains and losses of each item.

●Capital Gains (Losses) on Main Items, Net Amounts
FY2017FY2018(1) Gains (Losses）on hedges of variable life
insurance(8,424)(9,983)(2) Gains (losses）on hedges ofavailable-for-sale securities(4,350)246(3) Gains (losses) on sale of securities

0

6,072

(4) Devaluation losses on securities－(4,026)(3,566)(457)（JPY mn）(5) Gains (losses) on U.S. dollardenominated insurance

Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,842.4
1,674.7
1,485.0 1,435.5

1,457.7
1,260.0

1,189.0
1,050.7

1,115.8 1,114.8

1,555.1

1,214.7（JPY bn）

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Attachment

Sony Lifeʼs Quarterly Trend on
Annualized Premiums from New Policies
Annualized premiums from new policies

Of which, third-sector

30.9

23.9
20.5

19.5

18.2
15.3

（JPY bn）

4.1

3.9

3.1

4.4

16.1

16.2

3.1

2.8

3.3

21.1

3.6

18.7

19.2

18.9

3.3

3.9

3.8

4.0

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q

Note : Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

39

Sony Lifeʼs Quarterly Trend on New Business Value

19.8

21.1

21.9

22.6

23.6

23.1

17.1
14.1
12.2
10.1

4.9
（JPY bn）(0.1)

FY16.1Q FY16.2Q FY16.3Q FY16.4Q FY17.1Q FY17.2Q FY17.3Q FY17.4Q FY18.1Q FY18.2Q FY18.3Q FY18.4Q
Note: New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
The figures for FY2018 onward reflect the revision in the insurance risk measurement method and others which revised on March 31, 2018.
Copyright © Sony Financial Holdings Inc. All rights reserved.

40

Attachment

Sony Lifeʼs ESR
 The risk amount based on economic value as of March 31, 2019 was ¥742.3 billion, remained flat compared to the as ofDecember 31, 2018, due to an increase in insurance risk offsets the decrease in interest rate risk resulting drop in interest rates.
 ESR as of March 31, 2019 was 235%, up 10pt from December 31, 2018 due to an increase in MCEV.
（JPY bn）

Mar. 18

Dec. 18

Mar. 19

Insurance risk

497.5

513.9

547.3

Market-related risk

380.6

385.2

332.5

275.3

264.1

202.1

Operational risk

31.0

31.8

33.4

Counter party risk

2.5

2.8

3.0

(181.9)(185.9)(174.0)

729.7

748.0

742.3

Of which, interest rate risk

Variance effect
The risk amount based on
economic value（JPY bn）

MCEV + Frictional costs
ESR

Mar. 18

Dec. 18

Mar. 19

1,655.8

1,685.7

1,743.7

227%

225%

235%

Notes:
1. The risk amount based on economic value refers to the total amount of Sony Lifeʼs risks comprehensively examined by a market consistent approach, including
insurance risk and market-related risk and others.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model.
3. Risk amount excluding the variance effect within market-related risk.
4. ESR=(MCEV + Frictional costs) / Risk amount based on economic value.
Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on JGB Yields (Par rate)
10 years
1.20%

20 years
30 years

1.00%

40 years

0.80%

0.60%

0.40%

0.20%

0.00%
(0.20%)△0.20%

Mar. 18 Apr. 18 May. 18 Jun. 18 July. 18 Aug. 18 Sep. 18 Oct. 18 Nov. 18 Dec. 18 Jan. 19 Feb. 19 Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

Attachment

Trend on Risk-free Rate (Japanese yen/Par rate)
1.80%
1.60%

Mar. 18

1.40%

Dec. 18

Convergence
period:20 yearMar. 19

1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
(0.20%)△0.20%(0.40%)△0.40%

1 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

43

Trend on U.S. Dollar Bonds Yields (Par rate)
10 years
3.40%

3.20%

20 years
30 years

3.00%

2.80%

2.60%

2.40%

2.20%

2.00%
Mar. 18 Apr. 18 May. 18 Jun. 18 July. 18 Aug. 18 Sep. 18 Oct. 18 Nov. 18 Dec. 18 Jan. 19 Feb. 19 Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Attachment

Trend on Risk-free Rate (U.S. Dollar /Par rate)
Mar. 18

3.30%

Convergence
period: 30 year

Dec. 18
3.10%

Mar. 19

2.90%

2.70%

2.50%

2.30%

2.10%

1.90%

Last liquid point:
30 year

1.70%

1.50%
1 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
years

*For above risk-free rate, we employ the Smith-Wilson method for extrapolation so that the 60-year forward rate will coverage on the UFR (3.5%).
Copyright © Sony Financial Holdings Inc. All rights reserved.

45

Consolidated︓Summary Financial Statements（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

FY2018Change1,351.2

1.464.3+113.1

＋8.4%

54.1

78.2

+24.0

+44.4%

110.0

115.1

+5.0

+4.6％

6.5

6.8

+0.3

+4.9%

39.9

46.0

+6.0

+15.2%

Ordinary profit

7.1

9.5

+2.4

+34.3%

Ordinary revenues

2.3

3.6

+1.3

+55.2%

(1.0)

(0.8)

＋0.1

ー

1,503.6

1,629.1＋125.5+8.3%

Ordinary profit

66.8

93.8

+27.0

+40.4％

Profit attributableto owners of theparent

51.8

62.0

＋10.1

＋19.6%

Ordinary revenues
Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues

Ordinary profit
Ordinary revenues

Consolidated

FY2017*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
Proud Life Inc., Sony Financial Ventures Inc. and SFV・GB L.P. are included in the scope of
consolidation from FY17.2Q, FY18.2Q, and FY18.4Q, respectively.
(Note) Comprehensive income : FY2017: ¥52.2 billion, FY2018: ¥57.4 billion（JPY bn）
Consolidated

Net assets
Total assets

Mar. 18

Mar. 19

Change from Mar. 18

625.4

656.8

+31.4

+5.0%

12,401.4

13,468.2＋1,066.7+8.6%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Attachment

Sony Life︓Summary Financial Statements（Non-consolidated）（JPY bn）

FY2017FY2018

1,351.0

1,464.2+113.1+8.4%

1,059.2

1,136.1

+76.8

+7.3%

243.2

278.9

+35.6

+14.6%

Interest income
and dividends

157.7

166.9

+9.2

+5.8%

Gains on sale ofsecurities

0.0

6.1

+6.1

ー

Foreign exchange
gains, net

ー

13.4

+13.4

ー

Gains on separate
accounts, net

80.9

87.9

+7.0

＋8.7%

Ordinary revenues
Income from insurance
premiums
Investment income

1,294.7

1,384.4

+89.6

+6.9%

Insurance claims andother payments

436.5

457.2

+20.7

+4.7%

Provision for policy
reserves and others

638.3

704.7

+66.4

+10.4%

Investment expenses

33.1

24.6

(8.4)

(25.6%)

Ordinary expenses

Devaluation losses
on securities

ー

4.0

+4.0

ー

Losses onderivatives, net

11.4

13.9

+2.5

+22.1%

Foreign exchange
losses, net

15.2

ー

(15.2)(100.0%)

139.9

146.9

+7.0

+5.0%

Ordinary profit

56.3

79.8

+23.4

+41.7％

Gains on disposal of fixed
assets13.2

ー(13.2)(100.0%)Net income

45.1

49.6

＋4.4

+9.9%

Operating expenses

Mar. 18（JPY bn）

ChangeMar. 19

Change from Mar. 18

Securities

8,765.9

9,523.8+757.9+8.6%

Policy reserves

8,566.0

9,268.4＋702.3

+8.2%

492.7

513.9

+21.1

+4.3%

124.9

122.7

(2.2)

(1.8%)

9,567.6

10,380.1＋812.4+8.5%

1,128.8

1,300.7＋171.8+15.2%Net assets
Net unrealized gains
on other securities
Total assets
Separate accountassets

FY2017（JPY bn）
Gains from investment,net (General account)

129.2

FY2018Change

166.3

＋37.1

+28.7%

47

Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)

Direct Premiums Written *Medical insurance is included in personal accident.

（JPY bn）

Ordinary revenues
Underwriting
incomeInvestment
incomeFY2017110.0
108.3

FY2018
115.1
113.1

+5.0
+4.8

+4.6%
+4.5%

1.7

1.8

+0.1

+7.3%

103.5

108.2

+4.6

+4.5%

Underwriting
expenses

74.4

78.4

+4.0

+5.4%

Operatinggeneral andadministrative
expenses

29.0

29.7

+0.6

+2.3%

Ordinary
expenses

Ordinary profit
Underwriting
incomeNet income（JPY mn）

ChangeFire

Personal accident
Voluntary automobile

Total

+0.3

+4.9%

4.8

5.0

＋0.1

+3.8%

4.8

4.9

+0.1

+3.7%

（JPY bn）

Mar. 19

Change from
Mar. 18

Underwriting
reserves

117.0

127.8

+10.7

+9.2%

Net assets

33.1

34.7

+1.6

+4.9%

Total assets

204.3

219.6

+15.2

+7.5%

616

+198.8%

ー

ー

ー

8,679

8,823

+1.7%

98,123

102,758

＋4.7%

ー

ー

ー

107,008

112,198+4.8%

Net Premiums Written（JPY mn）

FY2017FY2018Change

16

265

0

(0)

ー

8,887

8,872

(0.2%)

Voluntary automobile

97,880102,458+4.7%

Compulsory
automobile liability

1,469

1,505

+2.4%

108,254

113,101+4.5%

MarineTotal

ーNet losses paid
（JPY mn）

Mar. 18

Change206

Compulsory
automobile liability

Personal accident

6.8

FY2018MarineFire

6.5

FY2017FY2017FY20186FireChange15+126.8％2

10+291.0%

2,692

3,009

+11.7%

Voluntary automobile

48,46452,223+7.8%

Compulsory
automobile liability

1,316

1,350

＋2.6%

52,48256,608+7.9%

MarinePersonal accident

Total

Copyright © Sony Financial Holdings Inc. All rights reserved.

48

Attachment

Sony Bank︓Summary Financial Statements(Balance of Securities by Credit Rating)◆ Consolidated（JPY bn）

FY2017FY2018ChangeOrdinary revenues

39.9

46.0

+6.0

+15.2％

Ordinary profit

7.1

9.5

+2.4

+33.6%

Profit attributable toowners of the parent

4.7

6.3

+1.6

+34.6%◆ Non-consolidated◆ Balance of Securities by Credit Rating（Non-consolidated）

FY2017FY2018

Ordinary revenues

36.2

41.7

+5.4

+15.0%

Gross operating profit

21.4

24.5

+3.0

+14.4%

AAA

Net interest income

20.6

23.3

+2.6

+12.9%

AA
A
BBB

18.1

（JPY bn）

Net fees andCommissions
Net other operating
incomeChange

(2.9)

(2.2)

+0.7

－

3.7

3.4

(0.2)

(7.3%)

General andadministrative expenses

15.5

15.9

+0.3

+2.5%

Net operating profit

5.9

8.5

＋2.6

+44.6%

Ordinary profit

6.5

8.6

+2.1

+32.6%Net income

4.4

6.0

+1.5

+34.6%（JPY bn）

Mar. 18

Net assets
Net unrealized gains
on other securities,
net of taxes
Total assets（JPY bn）

FY2017FY2018

232.4

296.6

+64.2

Change+27.7%

109.8

77.3

(32.4)(29.6%)

306.8

288.0

(18.7)(6.1%)

24.4+6.2+34.4%

Others

7.1

10.0

+2.9

+41.0%

Total

674.2

696.4

+22.1

＋3.3%

Change from
Mar. 18

Mar. 19

85.7

87.2

+1.5

+1.8%

6.0

3.9

(2.0)

(34.2％)

2,635.0

2,860.9+225.8+8.6%

Copyright © Sony Financial Holdings Inc. All rights reserved.

49

Sony Bank︓Operating Performance(On Managerial Accounting Basis)◆ On Managerial Accounting Basis・ Net interest income︓Increased due to an increase of interest income on investment securities and on loans in line with a growing
balance of mortgage loans.
・ Net fees and commissions︓Improved due to an increase of mortgage loansʼ fees and commissions（JPY bn）

FY2017＜Reference＞

ChangeFY2018

21.3

24.4

+3.1

+14.5％

23.0

25.5

+2.5

+11.1％

(2.5)

(1.7)

+0.7

ー

Net other operating
income*3

0.9

0.7

(0.2)

(23.6％)

Gross operating profit(core profit)(A) ＝①＋②

20.4

23.7

+3.3

+16.2％

Operating expenses andother Expenses ③

15.5

15.9

+0.4

+2.9％

Net operating profit(core profit) ＝(A)－③

4.9

7.8

+2.8

+58.0％

Gross operating profit*1

Net interest income
Net fees andcommissions*2①②■Managerial accounting basis
The following adjustments are made to the figures on a financial account for profits andlosses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency swap
transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), mainly consistsof profits and losses for bond and derivative dealing transactions.
■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bankʼs basic profits.

Yield on investment

Interest Spread(Managerial Accounting Basis）
Yield on financing

1.13
0.91

0.22

Interest spread

1.20+0.02pt

0.93

0.27

（%）

FY2017FY2018

Note: Interest spread=(Yield on investment)-(Yield on financing)
Copyright © Sony Financial Holdings Inc. All rights reserved.

50

Attachment

Contact︓
Investor Relations Department
Sony Financial Holdings Inc.
TEL︓+81-3-5290-6500