[Presentation Material]

Sony Financial Group
Corporate Strategy Meetingfor Fiscal Year 201６

Sony Financial Holdings Inc.
June 1, 2016
Sony Financial Holdings Inc. All Rights Reserved

Agenda Sony Financial Group
Market Overview and Basic Policy / Key Messages

 Medium-term Business Strategies of Each Group Company
Sony Life
Sony AssuranceSony Bank
Sony Lifecare

 Sony Financial Group
Consolidated Management Targets / Returns to Shareholders
Disclaimers:
Thi presentationThist ti materialt i l contains
t i statementst tt concerningi theth currentt plans,lexpectations,t tistrategiest t i andd beliefs
b li f off theth SonyS
Fi
Financiali l Group.
G
Any
A statementst ttcontained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking statements may include—but are notlimited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,” “predict,” “propose,” “intend” and “possibility” that describe
future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, may also be included in othermaterials 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
companies, and are based on information that is currently available to themthem. As such
such, they are subject to various risks anduncertainties, and actual 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 in this presentation does not constituteor 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 thebasis 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.

Sony Financial Holdings Inc. All Rights Reserved2Sony Financial Group

Market Overview and Basic Policy
On the earnings front, the Group will be affected by the ultralow interest rate environment, but we
expect to achieve ongoing growth by responding expeditiously with measures for improving earnings
and stepping up and enhancing efforts to provide high customer value.

<Medium-term market overview, key events>
2015

2016

2017

2018 andd afterft

Continuing ultralow interest rate environment
 Revised
Insurance
Business Act
enacted Revision in the discount rateused for calculating
gp
policyyreserves• Standard life table revision• Solvency regulations based on
economic value• Complete transition to Basel III
Prepared based on the Company’s understanding<Basic policy for the overall group> We will confidently execute expeditious measures to improve earnings in response to thecurrent declines in yen interest rates.
 We see the difficult operating environment as an opportunity to enhance the strengths andcompetitive edge of individual group companies, and aim to continue growing.

Sony Financial Holdings Inc. All Rights Reserved3Sony Financial GroupKey Messages in the Medium-Term Plan for FY16–18
Respond to theultralow interest
rate environment

Achieve ongoinggrowth for thegroup as a wholeWe will respond expeditiously to maintain or improve profitability.
(In particular, with regard to products, sales, risk management, etc., in the lifeiinsurancebbusiness)i)

We will reinforce our provision of high-quality, highly convenient services, andcontinue expanding our business operations by strengthening our competitive edge.

While monitoring operating expenses closely, we will confidently make up-front
investments aimed at future growth.
 We will make steady progress on initiatives in new business fields and new services.
At the same time, we will work proactively to adopt technologies that contribute toincreases in customer value, and consider new ways of providing our services.



Capitalppolicies,p,shareholder
returns

Our understanding is that the individual businesses currently have sufficient capital. We
will continue to monitor the interest rate environment, but at present we have no plans to
procure capital.
 Dividends have increased for the four consecutive fiscal years through FY15. Given thebusiness environment, we plan to maintain dividends at the present level in FY16.
Based on the assumption that we will maintain financial soundness in each of ourbusinesses, our policy of aiming for steady increases in dividends in line with earnings
growth over the medium to long term remains unchanged
unchanged.

Sony Financial Holdings Inc. All Rights Reserved

4

Sony
y LifeSony Financial Holdings Inc. All Rights Reserved5Sony Life

Effects of Ultralow Interest Rates (1)Sony Life has no need to procure capital even though it is affected by adecline in interest rates.
ESR as of Mar.
Mar 31,31 2016

Soundness based on economic value
ESR (MCEV/ Risk amount)
184%

161%

177%

MCEV
Risk amount based on
economic value (after tax)

Around140%(Billions of yen)

1 221 3
1,221.3

1,322.9

1,064.7104%
1,063.7 1,019.2¥1.3 trillion¥0.9
trillion

661.3

664.3

745.5

 Sony Life has adopted aconservative method of
calculating ESR to ensure highsoundness in an environment
where the outlook for regulatorychanges is uncertain.
 It has partially revised thecalculation method in
anticipation of future solvency
requirements.
q As a result, it has adequate
capital compared to risk amountbased on economic value. At
present, it has no need to
procure capital.

13.3.3114.3.3115.3.31

16.3.31

16.3.31*

0.63%*Assumed
Assumed figuresreflecting ultimate
forward rates (UFR)(40 JGB yields)(40yr
i ld )

1.64%

1.78%

1.46%

Sony Financial Holdings Inc. All Rights Reserved

Note: Sony Life changed its extrapolation method
for ultra
ultra-long
long term interest rates in Japanese yen to
use the ultimate forward rates (UFR).
(In the 41st year and beyond, the yield curve is
extrapolated to make the UFR for 20 years 3.5%.)

6

Sony Life

Effects of Ultralow Interest Rates (2)Secure growth in corporate value by further promoting sales of deathprotection type
Product portfolio(Based on annualized
premiums from new policies) In May 2016, suspended sales of some saving-type
products
Lump-sum-payment
Lump
sum payment whole life insurance(non-notification type)

Saving-type
products
28%

yp
Protection-type(whole life)30%

Endowment insurance (short-term payment) Increase insurance premiums of whole life insurance
to improve profitability

Lump-sum-paymenttLwhole life 5%
Protection-type(term life)37%* Based on product mix for FY15

Semi-participating individual annuities

Promote “sales of deathprotection type insurance,” ourbasic marketing strategy

Sony Financial Holdings Inc. All Rights Reserved7Sony Life

Key Messages: Initiatives Toward Growth

Strengthen ourability to provide
protection, cultivate
new business fields

 Further enhance our provision of death protection based onlife planningplanning.
 Conduct full-fledged development of the business ofprovidingp
gp
protection in the corporatepmarket.
 Accelerate expansion in the number of sales personnel in

Expand sales
channelsthe Lifeplanner channel
channel.
 Take changes in the operating environment as anopportunity to expand the foundations of the independent
agent channel.
channel Augment new business value through changes in the

Ensure corporate
value and steady
growthproduct mix and enhanced sales.
 By expanding business operations, achieve profit growthover the medium to long term
term.

Sony Financial Holdings Inc. All Rights Reserved8Sony Life

Providing Thorough Death Protection
Through high-quality consulting, propose necessary amounts of protection
throughout life
High-quality consulting utilizing LiPSS
 Propose necessary amounts of protection

Utilizing LiPSS
LiPSS = Life Planning Support Service

Utilize life planning to clearly provide basis forrational death protection

 Review protection in a timely manner
after contract
Conduct appropriate follow-ups by meticulously
obtaining and storing customer information

Use life planning to ascertain customers’
needs and economic situations, and thenoffer an appropriate combination of productsthat provide the necessary amount ofprotection
Sony Financial Holdings Inc. All Rights Reserved

9Sony Life

Initiatives in the Corporate Market
Make a full-fledged start of the business of providing protection in thecorporate market.
New policy amount,corporate and individual customers
法人
Corporate Launch products for corporate customers(May 2016)

個人
Individual

Level premium plan term life insurance with
reduced surrender value (Disability/Nursing CareType)
Revised increasing term life insurance (reduced
surrender value) Begin offering services for businessowners and employees
¥4.1
¥4
1
trillion

Offer diagnostic services, such as forOfff employment
regulations and retirement benefit systems

CAGR
10%

Provide fringe benefit menu Enhance the training and support system
Provide a system of basic and general training
according to level¥1.0
trillion
FY15

FY18

Provide sales support via a specializedorganization at headquarters

Sony Financial Holdings Inc. All Rights Reserved10Sony Life

Achieving Further Growth in Lifeplanner Channel
Achieved to hire 577 newly recruited Lifeplanners annually by actively
promoting Lifeplanners to “Office managers,” responsible for recruiting
Number of newly recruited
Lifeplanners

Number of office managers(Number)(Number)

660
577

530
380

403

414

455

439

419

370
Previousplanover 500

Previous
plan
500

FY12 FY13 FY14 FY15

FY17 FY18

FY12 FY13 FY14 FY15Sony Financial Holdings Inc. All Rights Reserved

FY17 FY1811

Sony Life

Achieving Further Growth in Lifeplanner Channel
Further increase the number of Lifeplanners,
while improving their productivity
Number of Lifeplanners & productivity

117
Productivity*
Productivity

100

O
Over
5,200
5 200
4,612

4,133

4,216

4,329
Previous
planOver 4,600

Number of
Lifeplanners asof the end of
fiscal year**

FY12

FY13

FY14

FY15

FY17

FY18

* Productivity is indexed to FY12 = 100, calculated on the basis of new policy amount.
** The figure as of the end of fiscal year includes the number of contracted Lifeplanner sales employees and those rehired on a fixed-term contract basis after retirement.

Sony Financial Holdings Inc. All Rights Reserved

12Sony Life

Further Growth in the Independent Agent Channel
Take changes in the operating environment as an opportunity to
expand the foundation for growth
Impact on independent agents of the revised
Insurance Business Act

New policy amount(Indexed to FY12=100)

130
105

100

- Establishment of management and training systems forginsurance agents- Identify and offer proposals in response to customer needs- Provide information to assist customer decisions to take out
insurance

Strength in consulting-based sales
as an opportunity for growth Independent agents with close regional
ties
Cultivate partners that share our philosophies
Support enhanced marketing and management
capabilities

FY12

FY13

FY14

FY15

FY18

 Independent agents covering a broad area
Individual support for agent education and cultivation

Sony Financial Holdings Inc. All Rights Reserved13Sony Life

Further Growth in the New Policy Amount
Increase sales volume by promoting sales of death-protection typeinsurance and extending sales force network
Trends of Sony Life’s new policy amount(Individual life insurance and annuities)(Trillions of yen)

支社チャネル
Lifeplanner

代理店チャネル
Independent agent

channelchannel

4.7

4.4¥5.8 trillion

5.1

3.8

FY12

FY13

FY14

FY15

Sony Financial Holdings Inc. All Rights Reserved

FY18

14

Sony Life

Sales Strategies in an Ultralow Interest Rate Environment
Initiatives in anticipation of the April 2017 revision in the discount rate used
for calculating policy reserves
Sony Life’s product mix(Based on annualized premiums
from new policies)

Endowment,
annuities

Yenwhole life

Lump-sum-payment
whole life

U.S.
U
S dollardollar
denominatedwhole life

Death-protection
products(Term life, etc.)

 Due to the revision of premium rates,
the pricing of yen-denominatedyen denominatedwhole-life insurance has become lessattractive for customers

 To meet demand for whole-life
products,poducts, strengthen
st e gt e p
proposals
oposa soffering U.S. dollar-denominatedwhole-life insurance
 To
T fulfill
f lfill protectiont ti
needs,
d strengthentthproposal-making capabilities foroffering term-life insurance* Based on product mix for FY15Sony Financial Holdings Inc. All Rights Reserved15Sony Life

Investment Policy in an Ultralow Interest Rate Environment
Promote diversification of investment methods, while maintaining
basic principle of ALM-based investment
Breakdown of new investment
in yen-denominated bonds
FILP agency bonds, corporate bonds
JGBs

100%

 Continue to invest in ultralong-term JGBs
Investing in ultralong-term JGBs essential in
response to long-term liability characteristics,
centered on death p
protection

 Increase investment in FILP agency bonds
and corporate bonds

50%

As in the previous fiscal year, continue to increase
investment in FILP agency bonds
0%
FY15

FY16

Invest in corporate bonds, primarily long-termbondsSony Financial Holdings Inc. All Rights Reserved16Sony Life

Stable Growth in Corporate Value (MCEV)
Achieve steady growth in corporate value by accumulating new businessvalue through changes in the product mix and enhanced sales
MCEVCore ROEV＋4.3%(Billions of yen)

＋51.3
1,322.9(20.0)

40 yr(JGB yields) 1.46%(320.2)Over¥1 1 trillion¥1.1
1,063.7
Ecoonomic variances, etc.

15.3.31((Adjusted
jopeningpg MCEV))E
Expected
existinng
business contrib
butionNeew business va
alue

Diividends paid to shareholders

15.3.31

+16.1

Assum
mption changes

1,302.9

+35.2

+29.7

(239.2)

16.3.31(83bp)

0.63%

19.3.31*MCEV is calculated based on the calculation method used as of Mar. 31, 2016 (not reflecting UFR).

Sony Financial Holdings Inc. All Rights Reserved17Sony Life

Ordinary Profit
Despite the effects of the lower interest rates, aim for profit growth throughexpanding the scale of policies in force
Ordinary profit (life insurance business)+13.0(Billions of yen)

+6.0

(3.0)
(0.5)

60.2

¥66.0
¥66
0
(1.5) billions

62.5
Higher expen
nses ofacquiring new
w policies

Increase in prrofit owing
to growing po
olicy
amount in force

OthersDecrease in interest income
and dividendss in lower
interest rates

Increase in prrofit owing
to growing po
olicy
amount in force

Lower gains ono sale of securrities

Positive impa
act from lower saales ofvariable life innsurance and otthers (*)

FY15

(3 0)
(3.0)

Others

(12.0)

Effect of the consumptionctax rise

+12.0

(5.0)

FY16

FY18

*Including changes in provision of policy reserves for minimum guarantees for valuable life insurance and gains (losses) on hedges of variable life insurance, andchanges in product mix for new policies and others.
The ordinary profit forecast for FY18 does not reflect the effect of a revision in the discount rate used for calculating policy reserves that is scheduled for April 2017.

Sony Financial Holdings Inc. All Rights Reserved18Sony Life

Sony Life Medium-term Targets
Ensure steadily growing profit by expanding business volume, even in
the ultralow interest rate environment

FY15

FY18

Policy amount in
force

¥43.1
trillion

CAGR
approx. 5%

Number of
Lifeplanners (Note1)

4,612

Increaseapprox. 600

MCEV

¥1.0
¥1
0
trillion

ROEV4-5%

OverO¥1.1 trillion¥60.2
billion

CAGR
approx. 3%¥66.0
billion(Note2)(N t 2)
Ordinary profit (Note2)(Life insurance business)Over¥49 trillion
Over
5,200

(Note1) The figure includes the number of contracted Lifeplanner sales employees and those rehired on a fixed-term contract basis after retirement.
(N t 2) MCEV is(Note2)i calculated
l l t d basedbd on theth calculationl l ti method
th d usedd as off M
Mar. 31
31, 2016 (not( t reflecting
fl ti UFR) andd marketk t assumptions
ti
are as off theth endd off M
March,h 2016
for FY18 target.
The ordinary profit forecast for FY18 does not reflect the effect of a revision in the discount rate used for calculating policy reserves that is scheduled for April 2017.

Sony Financial Holdings Inc. All Rights Reserved19Sony AssuranceSony Financial Holdings Inc. All Rights Reserved20Sony Assurance

Key Messages: Initiatives Toward Growth Three consecutive years of record profits, with solid

Ensure soundEdprofitability

Sustain growth andenhance customer
experience inautomobile
insurance

Expand businesscategories outside
automobile
insurance

operating performance in FY15
 By thoroughly controlling the loss ratio and operating costs,

continue to steadily increase profits during the period of themedium-term plan Firmly maintain a leading position in the direct automobile

insurance market
 Provide progressive and unique products, and sustain

growth by enhancing the customer experience throughcustomer contact points

 To ensure stable, long-term earnings, expand businesscategoriesti outsidet id automobilet
bil iinsurance, movingi away ffrom
a structure heavily concentrated on automobiles
 Introduce new products in the medical insurance, andpromote developing other categories

Sony Financial Holdings Inc. All Rights Reserved21Sony Assurance

Direct Automobile Insurance
Maintain an overwhelmingly leading positionin the growing direct automobile insurance market
Automobile insurance market and market
share of major direct non-life insurers(Billions of yen)

Direct premiums written by major direct
Insurers (Automobile insurance)(Trillions of yen)Sony Assurance
4.0

7.4%

3.0

7.1%
6.9%
6.6%
6.2%
5 8%
5.8%

Total automobile insurance market(Total direct premiums written)

5.2%
4.7%
4.3%
3.9%
3 6%
3.6%
3.3%
2.8%

2.0

2.3%
1.0

1.7%

A

B
C

Market share ofMajor direct insurers

D
E

1.1%
0.7%
0.3%
0.0%

G
H

F

0.0
Source: Materials officially disclosed by individual insurers,
Statistics of Life Insurance Business in Japan.

Source: Materials officially disclosed by individual insurers, disclosure materials.

Sony Financial Holdings Inc. All Rights Reserved22Sony Assurance

Ensuring Sound Profitability
・Reached record high in profits in FY15 due to higher revenues and a decline in the loss ratio
・By controlling the loss ratio and reducing operating costs, continue to further increase profits
during the period of the medium-term plan.
Trend of ordinary profit andadjusted ordinary profit

Trend of Earned/Incurred loss ratio, net
expense ratio and Sum of two ratios110%

Sum of two ratios(Billions of yen)
100%

95.2%
90.2%

98.1%

98.9%
93.8%

91.9%

91.0%

90.4%

64.3%

63.3%

26.7%

27.1%

90%

Adjusted ordinary profit

Earned/Incurred loss ratio

80%

69.7%

70%

63.5%

72.4%

72.9%
68.2%

65.8%

60%

ordinary profit

50%
Net expense ratio

40%
30%

26.7%

26.1%

25.5%

25.7%

26.0%

25.6%

20%

Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

Notes:
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for outstanding losses +Loss adjustment expenses) / Earned premiums
Net expense ratio = Expenses related to underwriting / Net premiums written
Sum of two ratios= Earned/Incurred loss ratio + Net expense ratio

Sony Financial Holdings Inc. All Rights Reserved23Sony Assurance

Sustainable Growth in Automobile Insurance
Sustain growth by reinforcing product strength in mainstay automobile insurance andenhancing the customer experienceFirmly maintain a leading position and favorable profitability in the direct market
 Further enhance customer retention by maximizing customer satisfaction

・ FY15： Increased the retention rate throughg NPS utilization and companywide
p ydeployment
p yof enhancing
g the customer
experience・ Further reinforce retention capabilities by offering high-value-added services during the accident response, at the callcenter and via the website
 Continue to be a front-runner in PHYD-type* products and telematics

・ Gentle Driving Cash-Back Plan ⇒ Measured reduction of approx. 30% in accident rates,
compared with conventional products
・ Based on our lead in knowledge compared with other companies, promote developing
higher-value-added telematics products
 Continue
C tiproactive
ti directdit marketing,k ti
andd expandd theth independenti dd t

agent channel
・ From our accumulation of proprietary expertise in direct marketing, continue to invest proactively in marketing,particularly via TV and Internet
・ ConcentrateCt t on expanding
di th
the iindependentdd t agentt channel,hl centeringt i on fface-to-face
t f
sales
l via
i shopshandd Lifeplanner
Lif lsales employees
 Ensure favorable profitability by reducing the expense ratio, and reinforce pricecompetitiveness・ Promote reducing the expense ratio through operational efficiency and BPR measures,
measures mainly in the major cost
areas
*PHYD-type (Pay How You Drive)

Sony Financial Holdings Inc. All Rights Reserved24Sony Assurance

Maximizing Customer Value and Enhancing the Customer
Experience as the Source of the Company’s Growth
Focus on reinforcing customer retention capabilities through initiatives aimed at augmenting
service quality
Enhance the customer experience through customer contact points through the companywide
deployment of improvement activities utilizing NPS
Accident response service

Pursue accident response speed and satisfactory response, clearlycommunicating to customers details about response plans andprogress reporting
Business process reengineering in Sony Assurance’s respective
specialized fields⇒ Reform operations by improving their quality and efficiency

Customer service

Reinforce incoming telephone response capabilities and improve
response qualityyof three call centers,, in Sapporo,
pp , Tokyoy and Kumamoto
・ Establish system
・ Increase nighttime and holiday hours of operation, and set up
response desks to meet customer needs
・ Introduce leading-edge technologies for customer response andoperations management

Web/smartphone serviceExpand services targeting smartphone users, which show aremarkable increase・ Improve UI to optimize website for smartphone use
・ Improve convenience by using smartphones to make procedures
paperless・ Develop and provide various types of unique smartphone apps

Sony Financial Holdings Inc. All Rights Reserved

Customer satisfaction
surveys in FY15
External rating agencies haveranked Sony Assurance at the
top of the industry in customer
satisfaction
ti f ti forf many years☆ JD Power Automobile Insurance
Satisfaction Survey
Overall accident satisfaction No. 1
Policyholder satisfaction

No. 2

Call center satisfaction

1/TOP3☆ JCSI Customer Satisfaction Index
Overall satisfaction for non-life
insurance

No. 1☆ HDI-JAPAN
Total support ranking

Three stars

H l deskHelpd k rating
ti

Th
Three
stars
t

25

Sony Assurance

Expanding Business Categories Outside Automobile
Insurance
To ensure stable, long-term earnings growth, accelerate business by expanding into multiple othercategories outside automobile insurance
Appeal to our strengths as a direct provider over the Internet and reasonable prices

Medical insurrance

Strengthen business by launching
distinctive new medical products +revising existing products
・ Appeal points: easy to understand, simple,
reasonable
・ Use characteristics of the Internet to makepolicy procedures more convenientconvenient, andprovide reasonable pricing
・ Expand compensation content and ancillary
services＋
New categorieesLaunch products that will become
third and fourth pillars of businessDirect premiums written
In addition to ongoing growth in automobile
insurance, increase percentage of medical
and new categories of insurance
CAGR +5%

110.0(Billions of yen)

78.3
783
Medical,
th
other

82.5
825

874
87.3

90.4
905

94.3
943

Automobile

・ Augment product uniqueness and proprietarycompensation
・ Use Internet/direct to pursue reasonablepricing and customer convenience・ Increase cross-selling of different categories
of products, including automobile and medical

Sony Financial Holdings Inc. All Rights Reserved26Sony AssuranceSony Assurance Medium-term Targets
Maintain steady growth by exceeding ¥100 billion in direct premiums written
during the medium-term business plan.
Continue raising profit by keeping and improving solid earnings structure

FY15

FY18

Direct premiums
written¥94.3
billionCAGR +5%

Approx.
¥110.0 billion

Net Expense ratio
E. I. loss ratio (*1)
Sum of two ratios

27.1%
27
1%
63.3%
90.4%

Sum of two
ratiosDecrease

Sum of two
ratios90% range

Ordinary profit

¥4.6
¥4
6
billionCAGR +4%¥5.2¥52
billionAdjusted ordinary
profit (*2)

¥7.6
billionCAGR +4%¥8.7
billionAdjusted ROE

13.3%

Remain at ahigh level13%* 1 For all types of policies and including loss adjustment expenses.
* 2 Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

Sony Financial Holdings Inc. All Rights Reserved27Sony Bank

Sony Financial Holdings Inc. All Rights Reserved28Sony Bank

Key Messages: Initiatives Toward Growth Establish a solid market position as the “Foreign Currency

Strengthen strategic
products

S
Specialist”
i li t” Reinforce the realtor sales channel and improve productcharacteristics to further expand mortgage loans

 Expand preferential services with Sony Bank WALLET as a

Expand the customer
base

hub
 Provide products and services targeting asset investment((wealthy)y) stratum

Enhance customer
response capabilities

 Enhance
E hcustomert
response capabilities,
bilitiusing
i ““people”
l ” andd“IT”, in dealing with changes in awareness of “independent
individuals”

Sony Financial Holdings Inc. All Rights Reserved29Sony BankHigh Customer Satisfaction, Steady Business Expansion
Retail balance has been increasing steadily leveraged by high customer satisfaction.
By the end of FY18, increase retail balance to over ¥4 trillion, up approx. ¥1 trillion
from the end of FY15FY15.

AAwardsdNikkei’s financial institution customer
satisfaction rankings
Ranked 1st*

Retail balance[Sum of deposits, investment trusts and personal loan balance]（Billions of yen）

5,000.0

CAGR
Approx. 8%

4,000.0

HDI-Japan（Help desk Institute）
Inquiry desks rankings
Five star rating for the third consecutive years
Five-star
HDI-Japan（Help desk Institute）
Web Support portals rankings
Five-star rating for the third consecutive years（FY15-18）

3,000.0,

2,000.0

1 000 01,000.0*Nikkei Veritas
Announced in January 31, 2016

0.0
FY12

FY13

FY14

Personal loans
Foreign currency deposits

Sony Financial Holdings Inc. All Rights Reserved

FY15

FY18

Yen deposits
Invetment trusts

30Sony Bank

Enhancing “Foreign Currency Deposit” BusinessSony Bank has been recognized as the “Foreign Currency Specialist” once again after thelaunch of Sony Bank WALLET. Establish a solid market position by continuously working on
the development of foreign currency products and services.

January 2016

Sony Bank WALLET launched!

Number of newly registered foreign
currency
y depositpaccounts in FY15

（Number）

2,500
June 2015
・Renewed Foreign Exchange Margin Trading (FX) service- Increase of currency pairs, Adding new features
such as direct
direct-login
login

2,000

Number of newly registered foreign
currency deposit accounts (average)
jumped approx. three fold after the
release of Sony Bank WALLET

1,500

Sony Financial Holdings Inc. All Rights Reserved

Mar, 2
2016

Feb, 2
2016

Jan, 2
2016

Dec, 2
2015

Nov, 2
2015

Oct, 22015

Sep, 2
2015

Aug, 2
2015

Jul, 22015

0Jun, 22015

Future plans
・Expand a lineup of foreign currency-denominated investment
products ((e.g.
pg foreign
g currency-denominatedyinvestment trusts))
・ Upgrade the preferential services for foreign currency
deposit business (phase 2), etc.

500

May, 22015

Aprilil 2016
A・Launched “Sony Bank WALLET app” for Android device users.

1,000

Apr, 2
2015

March 2016
・Upgraded the preferential services for foreign currency
deposit business (phase 1)

31

Sony Bank

Expanding Mortgage Loan Balance
Steadily expanded mortgage loan balance by strengthening alliances with realtors
and increasing the number of alliance partners.
Aim to expand mortgage loan balance further by product renewals and improved
servicei quality.
lit
Percentage of new mortgage loan
amount via the realtor sales channel

Trend of mortgage loan balance(Billions of yen)

CAGR
Approx. 8%

2,000

FY12

（FY15-18）

FY15

1,600

26 4%
26.4%

1 200
1,200

50.4%

800
400
0

FY12

FY13

FY14

FY15

FY16

FY17

FY18

■ Percentage of new mortgage loan
amount via the realtor sales channel

Sony Financial Holdings Inc. All Rights Reserved32Sony Bank

Expanding the Client Base
Cultivate relationships with customers by expanding preferential services with Sony BankWALLET as a hub.
Target asset investment (wealthy) stratum, after the launch of new card loan service for asset
building stratum.
stratum

Cross-selling with “SonyBank WALLET” as a hub

Approach to new customer
segments
Products &Services for asset investment(wealthy) stratum

Foreigncurrency
deposit・Asset management advice / support function
・Various asset investment products andasset-backed loans
e.g. Apartment house management loans andReal estate investment loans, etc.

外貨預⾦

Mortgageloans

YendepositSonyy BankWALLET
ExpandPreferential
services

FX
Foreign Exchange
Margin Trading

Investment
trustsAssetmanagement(wealthy
individuals)
Assetmanagement

Assetbuilding

New products &Services
Foreigncurrency deposit
Mortgageloans
New personalloans

Over Over Over Over Over20~ 30~ 40~ 50~ 60〜
Sony Financial Holdings Inc. All Rights Reserved

(age)

33

Sony Bank

Enhancing Customer Response Capabilities
Enhance customer response capabilities, using people and IT, in dealing
with changes in awareness of “independent individuals”
Changes in Sony Bank’s targeted“Independent Individual” customers
People who obtain necessary
information themselves, andthink and make decisions
independently

People who obtain necessary information
themselves, and think and make decisions
independently, referring to specialist opinions andadviceadvice.

Seamless customer
response.
utilizingtili i people
l and
d IT

People・Make customer response desk one-stop
・Enhance specialized skills of people working
at customer response desk

FinTech・Web consultation function using AI technology
・Pursue the user experience, such as byemployingep oy g fingerprint
ge p t aut
authenticatione t cat o function
u ct oSony Financial Holdings Inc. All Rights Reserved34Sony Bank

Impact of Negative Interest Rate
 Ordinary profit for FY16 is expected to decrease year on year due to the BOJ’s introduction ofnegative interest rates and an increase in up-front expenses incurred by investment on
measures to expand the customer base. (e.g. marketing costs)
A hi
t d growthth ini profit
fit over medium
ditthh assuming
i theth impactit off Achieve
steadyterm
even thoughcontinued negative interest rates.

Ordinary profit

Sustainable growth(Billions of yen)

10
←Impact ofnegativeinterest
rates

7.5

(0.8)
(0.6)

5

2.5

59
5.9

← Up-front
U ft
investment←Impact ofnegativeinterest
rates

7.2

4.5

1) Achieve steady growth inprofit even thoughassuming the impact ofnegative interest rates by・Further strengthen foreign
currency deposit business・Steadily expand card loanbusiness2) Accelerate profit growthby extending revenue
opportunities and by
expanding customer base
base.

0
FY15 ((actual)t l)

FY16 (f(forecast)t)

FY18 (target)(tt)

Sony Financial Holdings Inc. All Rights Reserved35Sony Bank

Sony Bank: Medium-term Targets
Achieve an expansion of customer base and a more stable revenue stream thatcannot be easily swayed by market conditions by offering high-value-added products andservices to customers and enhancing ALM

FY15
Retail balance[Sum of deposits, investment trusts
and personal loan balance]

Gross Operating Profit(Sony Bank consolidated)

Ordinary Profit(Sony Bank consolidated)

ROE(Sony Bank consolidated)

FY18

¥3.2
trillion

CAGR
Approx. 8%¥24.3
billionCAGR
Approx. 4%¥5.9
billionCAGR
Approx. 7%¥7.2
billion

5.0%

Targeting
6% level

Around6%

Sony Financial Holdings Inc. All Rights Reserved¥4.1
trillion¥27.6
billion36

Nursing
g Care BusinessSony Financial Holdings Inc. All Rights Reserved37Sony Lifecare

Progress in the Nursing Care Business
Create two pillar business base: newly built nursing care homes and strategic alliances
Move to business expansion phase through combination of service quality on new facilities andYuuai Holdings’ on-the-ground deployment capabilities<Strategic alliance strategy><Newly build home strategy>

Upper

Create and pursue quality as corebusiness value
Develop the SONARE series to realize
the “Life Focus” concept

Middle・Aprilp 2016: First new home openedp・May 2015:(Capacity: 48)

VolumeSONARE Soshigaya-Okura, Tokyo・Spring 2017: Second new homescheduled to open
(Urawa Saitama prefecture(Urawa,prefecture, capacity: 68)

Managementadminiadmini
strationHigh quality
nursing careservices, planning

Acquire necessary resources toexpand business through alliances withexisting companies having shared
philosophy and scale (on-the-ground
deployment capabilities)

Facility
design,planning

Build and expand
business base and byycombining management
resources

Sony Financial Holdings Inc. All Rights Reserved

Hanakotoba
MachidaTsurukawa,
T k
Tokyo

Operation
at multiple
locationsSony Lifecare enteredcapital participation in
Yuuai Holdings(acquiring 14.5% ofissued shares)
28 homes (approx.
1,400 rooms) in the
Hanakotoba series

Cultivationof locations

Human
resource
recruiting
andtraining

38

Sony Financial GroupSony Financial Holdings Inc. All Rights Reserved39Sony Financial Group

Growth in Each of the Group’s Businesses
Maintain toptop-line growth through the steady expansion of our three core businesses
Sony Life

Sony AssuranceSony Bank

Policy amount in force

Direct premiums written

Retail balanceOver¥49trillion

CAGR
A
Approx.
5%¥43.1
trillion

FY15

Approx.
¥110.0billionCAGR
Approx 5%
Approx.
¥94.3
billion

FY16

FY17

FY18

Previous
mid-term
plan

Current
mid-term
plan

FY15

Yen and foreign currency deposits +investment trusts + personal loans¥4.1
trillion

CAGR
Approx. 8%¥3.2
trillion

FY16

FY17

FY18

Previous
mid-term
plan

Current
mid-term
planSony Financial Holdings Inc. All Rights Reserved

FY15

FY16

FY17

FY18

Previous
mid-term
plan

Current
mid-term
plan

40Sony Financial Group

Consolidated Ordinary Revenues and Profit
Consolidated ordinary revenues are expected to grow as a result of business expansion.
However, consolidated ordinary profit is expected to moderately increase under the ongoingultralow interest rate environment.
Consolidated ordinary revenues(Billions of yen)Life Insurance business

Non-life insurance business

1,650.0
1,362.0

Banking business

80.0
71.1

1,450.0

Profit attributable toowners of parent

Consolidated ordinary profit

71.0
43 3
43.3

(Previous)
FY17
1,500.0

FY15

FY16(F)

Previous
mid-term
plan(Previous)
FY17
65.0

(Previous)
FY17
100.0

FY18

Current
mid-term
plan

FY15

FY16(F)

Previous
mid-term
plan

51.0

46.0

FY18

Current
mid-term
plan

FY15

FY16(F)

FY18
Previous
mid-term
plan

Current
mid-term
plan* Assumption for calculating mid-term target figures for FY18
Sony Life： Interest rates as of the end of March 2016, Sony Bank： Please see page 54.
These figures reflect the effects of the consumption tax rise from FY17 but not those of the revision in the discount rate used for calculating policy reserves.
.

Sony Financial Holdings Inc. All Rights Reserved41Sony Financial Group

Revision of the previous medium-term plan
(Consolidated Ordinary Profit)
Profit projection is revised downward compared with the previous medium-term plan due to an
expected lower investment returns for the life insurance and the banking businesses under theextremely low interest rate environment and an expected higher expenses of acquiring
new policies*li i * ini theth life
lif insuranceibusiness.
b i【Previous mid-term plan】
FY17 Consolidated ordinaryy profit
p¥100.0 billion

Consolidated ordinary profit
Life Insurance business

Non-life insurance businessBanking business(Billions of yen)

90.0
74.6

79.2

76.1
71.1

80.0

71.0

【Assuming the ongoing market conditions of
extremely low interest rates continue】•

Life insurance & Banking business:
Lower investment income•

Life insurance: Increase in provision of policy
reserves for minimum guarantees for variable
life insurance

＋
FY11

FY12

FY13

FY14

FY15

FY16(F)

Previous
mid-term
plan

FY18

Investment for future growth / increase inoperating expenses(Life insurance) higher expenses of acquiring
new policies*Increase in initial costs of acquiring new policies, especially a provision of policy reserve forminimum guarantees for variable life insuranceSony Financial Holdings Inc. All Rights Reserved42Sony Financial GroupOperating Income under US-GAAP [Reference]
Operating Income under USUS-GAAP for FY18 is expected to be around ¥160 billion due to adecrease in interest income and dividends and a drop in expected rate of return on investments
under the lower interest rate environment
environment.
(Billions of yen)

156.5
150.0

Approx¥160.0 billion
150 0
150.0

100.0

50.0

0.0
FY15

FY16

FY17

FY18

SFH’s parent company,
compan Sony
Son Corporation,
Corporation presents its consolidated financial statements in accordance with
ith U.S.
U S GAAP.
GAAP The financial information for the Sony
Son Group’s
Gro p’s Financial Services
Ser icessegment, which includes the Sony Financial Group, is presented in accordance with U.S. GAAP. Although the Sony Financial Group constitutes the majority of the Sony Group’s Financial
Services segment, our Group presents its consolidated financial statements in accordance with Japanese GAAP.
Please see page 50 for an explanation of the primary discrepancies and differences in scope between U.S. and Japanese accounting practices.

Sony Financial Holdings Inc. All Rights Reserved43Sony Financial Group

Consolidated ROE
 Sony Life’s ROEV decreased due to a further decline in interest rates.
 Consolidated ROE (Japanese GAAP) is expected to recover to around 10% in FY18.
Adjusted ROE

FY11

FY12

FY13

FY14

FY15

FY18

14.1%

3.3%

14.9%

9.6%

(20.2%)

7.9%

5.2%

6.0%

5.0%

3.9%

Sony Assurance:
Adjusted ROE(1.2%)(0.1%)

9.8%

14.2%

13.3%

13%

Sony Bank(Consolidated): ROE

2.9%

4.3%

4.8%

6.0%

5.0%

Approx.
6%*

Consolidated
adjusted ROE

13.1%

3.3%

14.2%

9.5%

(17.8%)

4～5%

Sony Life: ROEV
core ROEV

4～5%*
4 5%*

Please see page 51 for the formula of adjusted ROE calculation.
* Assumption for calculating adjusted ROE for FY18
Sony Life： Interest rates as of the end of March 2016; Sony Bank： Please see page 54 for Interest rate assumptions by currency.

Consolidated
ROE

FY11

FY12

FY13

FY14

FY15

ROE (J-GAAP)

10.2%

11.5%

9.0%

10.7%

7.8%

ROE (US-GAAP)(US GAAP)
reference

14 6%
14.6%

11 1%
11.1%

11 3%
11.3%

13 0%
13.0%

9 0%
9.0%

Recover toaround 10%
level

ROE (J-GAAP, US-GAAP) = Net income / Average of stockholders‘ equity (Total net assets minus minority interests)

Sony Financial Holdings Inc. All Rights Reserved

44Sony Financial Group

Shareholder Returns
 Dividends have increased for the four consecutive fiscal years through FY15.
Given the business environment, we plan to maintain dividends at the present level in FY16.
 Based on the assumption that we will maintain financial soundness in each of our businesses,
We aim forf steady increases in dividends in line with earnings growth over the medium to longterm.
Mid--term dividend pMidpayoutyratio targetg40～50%

30～40%
Dividend payout ratio (%)
32.2
26.5

26.4
21.2

20.9

32.0

55.2

52.0

23.9

23.9

24.1

13.6
17 3
17.3
13.0

Annual dividend amount (Billions of yen)

8.7
65
6.5

Dividend per share

FY07
¥15

65
6.5

FY08
¥15

10.8
8.7

65
6.5

FY09
¥15

4th consecutive
year ofdividend increases

FY10

FY11

¥20

¥20

FY12
¥25

FY13
¥30

FY14
¥40

Sony Financial Holdings Inc. All Rights Reserved

Unchanged

FY15

FY16

¥55
¥55
(Planned) (Forecast)

45

END

Sony Financial Holdings Inc. All Rights Reserved

46Appendix

Sony Financial Holdings Inc. All Rights Reserved

47Sony Financial Group (Reference 1)

Financial Review for FY15Sony Life

Sony AssuranceSony Bank

Sony Life posted a second
consecutive yyear of record highg
new policy amount in line with thesales promotion of death protection
products

Sony Assurance posted a record
highg ordinaryyp
profit,, mainly
y becauseof a steady increase in new policies
in automobile insurance and an
improvement in the loss ratio.

Sony Bank’s retail balance has
been continuously grown
grown. Ordinary
profit was down due to a decline ingains on sale of bonds.

New Policy amount(Trillions of yen)

4.20

4.45

FY11

FY12

4.77

5.15

3.88

FY13

FY14

FY15

Net premiums written
91.7
88.6
83.5
79.1

95.5

FY11

FY15

(Billions of yen)

Ordinary profit (Non-consolidated)(Billions of yen)

69.4

74.6

FY12

FY13

FY14

Ordinary profit(Billions of yen)

79.6

Retail balance(Trillions of yen)

2.62

4.6
4.2

FY11

(Billions of yen)

3.08

FY12

FY13

FY14

Ordinary profit(Consolidated)

3.0

2.8

3.9

FY13

FY14

FY15

FY11

FY12

FY13

FY14

FY15

Sony Financial Holdings Inc. All Rights Reserved

FY11

3.28

FY15

7.3
5.9

5.6
2.3

FY12

2.96

69.2
60.7

FY11

2.84

4.4

FY12

FY13

FY14

FY15

48

Sony Financial Group (Reference 2)

Consolidated Financial Forecast for FY16
C
Consolidated
lid t d ordinarydirevenues are expectedt d tot increase,i
consolidated
lid t d ordinarydiprofitfit isi expectedt d tot beb almostlt flat,fl t
and profit attributable to owners of the parent is expected to increase.
(Billions of yen)

FY16 (Forecast)

FY15 (Actual)

Change1,362.0,

1,450.0,+6.5%

1,230.2
96.9
37.9

1,309.8
101.6
37.9

+6.5%
+4.8%
(0.1%)

C
Consolidated
lid t d ordinarydiprofit
fit

71 1
71.1

71 0
71.0

(0 1%)(0.1%)

Life insurance business

60.2
4.6
5.9

62.5
4.4
4.5

+3.8%
(6.0%)(24.9%)

43.3

46.0

+6.1%

Consolidated ordinary
y revenues
Life insurance business
Non-life insurance businessBanking business

Non-life insurance businessBanking businessProfit attributable to owners of the parent

For FY16, stable and sustainable business growth is expected in all the businesses.
Consolidated ordinary revenues are expected to increase because we anticipate higher revenues in the life insurance business. Consolidated ordinary profit is expected
to be almost flat because we anticipate an increase in profit in the life insurance business, offset by a decrease in profit in the banking business. Profit attributable toowners off theth parentt is
i expectedt d tot increase
i
due
d to
t the
th impactit off a reduction
d ti ini theth effective
ff ti corporatet incomeitax
t ratet for
f FY16,
FY16 comparedd withith FY15’FY15’s negative
ti impactitof the reversal of deferred tax assets, accompanied by the cut in corporate income tax.
<Segment information for ordinary revenues and ordinary profit＞■Life insurance business
Ordinary revenues are expected to increase year on year because we anticipate stable increases in insurance premium revenues and investment income.
Ordinary profit is expected to increase year on year because we expect a positive impact of a decline in provision of policy reserves for minimum guarantees forvariablei bl lif
life insurance
i
to
t be
b offset
ff t byb lowerlgains
i on salel off securities.
iti■Non-life insurance business
Ordinary revenues are expected to increase year on year in line with growth in net premiums written primarily for automobile insurance.
Ordinary profit is expected to decrease year on year because we expect the loss ratio to be higher than the ratio in FY15.
■Banking businessAlthough we anticipate stable growth in business scale, ordinary revenues are expected to be flat year on year due to lower interest rates associated with the BOJ’s
introduction of negative interest rates.
Ordinary profit is expected to decrease year on year due to an increase in up-front expenses incurred by investment on measures to expand the customer base overthe medium term, in addition to an expected lower interest spread.

Sony Financial Holdings Inc. All Rights Reserved49Sony Financial Group (Reference 3)

U.S. GAAP-based Operating Income
As for profit of an insurer with growing policies in force, the following two reasons increase
profit for U.S. GAAP-based operating income of the Sony Group’s financial services segmentcomparedpwith Japanesep
GAAP-based ordinaryy p
profit of the Sonyy Financial Group:p Different accounting treatment for policy reserves (future insurance policy benefits) Accounting treatment of deferred insurance acquisition costs (recorded in U.S. GAAP only)
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, the SFH’s parent company, which prepares its financial statements in accordance with U.S. GAAP. Sony Financial Group’s scope of
consolidation and that of Sony Group’s Financial Services segment are described below.
< Sony Financial Group’s scope of consolidation under Japanese GAAP>*SFH’s
SFH s scope of consolidation includes Sony Financial Holdings Inc.,Inc Sony Life Insurance Co
Co. LtdLtd., Sony Assurance Inc
Inc., Sony Bank Inc.,Inc Sony Life Insurance(Philippines) Corporation, Sony Bank Securities Inc., Sony Payment Services Inc. , and SmartLink Network Hong Kong Limited. It also includes AEGON Sony
Life Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies accounted for under the equity method. Sony Payment Services Inc. and SmartLink
Network Hong Kong Limited were included in the scope of consolidation from the second quarter of the year ended March 31, 2012 and the fourth quarter of theyear ended March 31, 2014, respectively. Sony Bank Securities Inc. and Sony Life Insurance (Philippines) Corporation were out of the scope of consolidationfrom the second quarter of the year ended March 31, 2013 and the third quarter of the year ended March 31, 2013, respectively and thereafter. Sony Lifecareg Inc. are included in the scopep of consolidation from the financial forecast for the fiscal yyear ending
g March 31,, 2017.
Inc. and Lifecare Design<Scope of consolidation of the Sony Group’s Financial Services segment under U.S. GAAP>
Sony Group’s Financial Services segment includes Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony Assurance Inc., Sony Bank Inc., Sony Bank
Securities Inc., Sony Payment Services Inc., SmartLink Network Hong Kong Limited and Sony Finance International, Inc. as consolidated subsidiaries. It also
includes AEGON Sony Life Insurance Co., Ltd., SA Reinsurance Ltd., and SFI Leasing Company, Limited as affiliated companies accounted for under the equity
method. However, from the fiscal year ended March 31, 2013, Sony Finance International, Inc., and the equity results of SFI Leasing Company, Limited, are notincluded in the Sony Group’s Financial Services segment. Sony Bank Securities Inc. was out of the scope of consolidation from the second quarter of the year
ended March 31, 2013 and thereafter. Sony Lifecare Inc. and Lifecare Design Inc. are included in the scope of consolidation from the financial forecast for the
fiscal year ending March 31, 2017.
*SmartLink Network, Inc. changed its corporate name to Sony Payment Services Inc. on April 1, 2015.

SFH announced [Reference Disclosure] Key Performance Figures Based on U.S. GAAP on Apr. 28, 2016. Please refer the announcement.
http://www.sonyfh.co.jp/en/financial_info/results/sfh_fy2015_4q_02.pdf

Sony Financial Holdings Inc. All Rights Reserved50Sony Financial Group (Reference 4)

Definition of Adjusted ROE
Calculation of 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

Numerator(Adjusted
profit)Denominator(Adjusted
capital)Sony Life
ROEVSony Assurance
Adjustedj
ROE

The amount of increase in
Embedded Value (EV) during the
fiscal year plus dividends paid＋

(1)

Net income plus provision
amount for catastrophe reserveand its provision amount forreserve for price fluctuations, ineach case after taxes
(2)

＋

(4)

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

EV as of the beginning of thefifiscall year lessldividends
di id d paid
idplus EV as of the end of the
fiscal year, divided by two.

＋＋Sony Bank
ROE
Profit attributable to owners of
the parent(3)

The average amount of net
assets during the fiscal year(6)

* Consolidated Adjusted ROE= Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit＝ (1)＋(2)＋(3)Consolidated Adjusted Capital ＝ (4)＋(5)＋(6)* Sony Life
Life’ss Core ROEV=ROEV Calculated by excluding impact of environmental changes such as interest rate fluctuations
fluctuations.
Numerator ： New business value plus expected existing business contribution (risk-free-rate)
Denominator ：EV as of the end of the fiscal year less dividends paid plus EV as of the end of the fiscal year, divided by two

Sony Financial Holdings Inc. All Rights Reserved51Sony Life (Reference 5)

JGB Yields

As of the end of each monthSony Financial Holdings Inc. All Rights Reserved52Sony Assurance (Reference 6)

Automobile Insurance
Combined ratio(Net expense ratio + Net loss ratio)

Net expense ratio

40%

110%
35%

D
C
B
A

30%

Sony Assurance

25%

105%

100%
Sony Assurance
Net expense ratio+ E.I. loss ratio

95%

20%
FY10

FY11

FY12

FY13

FY14

90%

D
B
C
A

85%

Sony Assurance
Combined ratio

FY15

Net loss ratio
75%

70%Sony Assurance
E.I. loss ratio

65%

80%
FY10

60%

B
A
D
C

Sony Assurance
Net loss ratio

55%
FY10

FY11

FY12

FY13

FY14

FY15

FY11

FY12

FY13

FY14

FY15

Notes: Sony Assurance
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for outstanding
losses + Loss adjustment expenses) / Earned premiums.
[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]
calculation ]Net loss ratio= (Net losses paid + Loss adjustment expenses) / Net premiums written
Net expense ratio= Expenses related to underwriting / Net premiums written
Source: Disclosure from each insurer

Sony Financial Holdings Inc. All Rights Reserved53Sony Bank (Reference 7)Interest Rate Assumptions by Currency
Trends and future assumption on interest rates of each currency* Solid lines show the assumption as of the end of Jan. 2016, while dotted lines show those set as of the end of Jan. 2015.
* Impliedpforward rates are used for the future assumption.
p
6.00

6.00

5.00

5.00

AUD
4.00

4.00

3.00

3.00

NZD
2.00

2.00

EUR

1.00

0.00

USD
JPY

0.00

4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3

1.00

FY11
2011年度

FY12
2012年度

2013年度
FY13

FY14
2014年度

2015年度FY15

FY16
2016年度-1.00

FY17
2017年度

FY18
2018年度-1.00

Sony Financial Holdings Inc. All Rights Reserved54Sony Bank (Reference 8)

Maintaining Profitability

The ratio of foreign currency
deposit in the total deposit balance

Trend of Interest spread
Around
0.9％

FY15
17.4％
％

FY18
Approx.
25％

MaintainMi t i theth currenttlevel of interest spread■Foreign currency deposit

Sony Financial Holdings Inc. All Rights Reserved55Sony Lifecare (Reference 9)Progress in the Nursing Care Business(Newly Built Nursing Care Home) “Life Focus:” Aim to provide homes that help people live the sort of life that suits them best The first home in the SONARE series opened in April 2016 in Setagaya-ku, Tokyo. A second
home is scheduled to open in the city of Saitama next spring.

Key Characteristics of the SONARE Series•••

Creates a cooperation system of multiple specialists to provide
high-quality care
SONARE
Soshigaya-Okura, Tokyo-

Closely linked network of caregivers, nurses, dieticians, occupational
therapists and life managers-

Computerized daily care records to enable sharing of information effectively and in real time

Assignment of life managers and employment of various measures to improve
quality of life-

Sleep management proposals to optimize sleep for individual residents-

Natural introduction of rehabilitation to everyday life activities-

Proposalspof individual recreation p
programsgcatering
g to residents’ likes and tastes

Facility design targeting flexibility and livability-

Nearly square layout, diagonally placed toilets and other room design features to adapt tochanging physical conditions-

Rooms equipped with well-soundproofed entry doors to ensure privacy
Sony Financial Holdings Inc. All Rights Reserved

56

Contact:
Communications & Investor Relations Department
Sony Financial Holdings Inc.
TEL： +81-3-5785-1070

Sony Financial Holdings Inc. All Rights Reserved

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