Content

In FY2015, Sony Life’s new policy amount surpassed ¥5 trillion, reaching the highest
level to date.
date Sony Bank also performed favorably,favorably thanks to the introduction of Sony
Bank WALLET and other new products. As a result, the Group’s business volumecontinued to expand steadily. However, consolidated ordinary profit declined year onyear, owing to a rise in provision of policy reserves for minimum guarantees for variable
life insurance stemming from an increase in new policies and the worsened financial
market conditions at Sony Life.
In FY2016, we expect the business environment to worsen somewhat with negativei tinterest
t ratest continuing,ti ibutb t we anticipate
ti i t thatth t eachh GroupGcompany will
ill continue
titto
steadily expand its field of business. Consequently, we forecast a 6.5% increase inconsolidated ordinary revenues year on year, essentially flat consolidated ordinary profit
and a rise in profit attributable to owners of the parent owing to a reduction in thecorporate tax rate.
As of March 31, 2016, Sony Life’s MCEV was down from a year earlier due to ag
decline in yyen interest rates. Byy responding
g promptly
y with measures including
gsignificant
premium revisions, Sony Life is working to improve profitability to ensure steady growthin MCEV even under low interest rates environment.
For FY2015, we plan to pay a year-end dividend of ¥55 per share, up ¥15 year on year
(for the 4th consecutive year of dividend increases). For FY2016, we expect to maintainthis level of dividends (¥55 per share) from FY2015, after taking into account ourbusiness environment surrounding the Group and our forecast of consolidated financial
esu tsresults.

Consolidated ordinary revenues increased 0.7% year on year, to ¥1,362.0 billion,
owing to increases in ordinary revenues from the life insurance and the non-life
insurance businesses, whereas ordinary revenues from the banking businessdecreased.
Consolidated ordinary profit decreased 21.1% year on year, to ¥71.1 billion,
owing to decreases in ordinary profit from the life insurance and the banking
businesses, whereas ordinary profit from the non-life insurance businessincreased.
c easedProfit attributable to owners of the parent was down 20.3% year on year, to ¥43.3
billion due to the decrease in ordinary profit.

Sony Life’s ordinary revenues were almost flat year on year, to ¥1,230.1 billion. Thiswas due to an increase in insurance premium revenues reflecting a favorable
acquisition of new policies and an increase in gains on sale of securities in thegeneral account, substantially offset by a deterioration in investment performance inthe separate account, driven by the worsened financial market conditions.
Ordinary profit decreased 23.7% year on year, to ¥60.7 billion. This was due to asignificant increase in provision of policy reserves for minimum guarantees forvariablea ab e lifee insurance
su a ce as a result
esu oof aan increasec ease in new
e popoliciesc es aandd thee worsenedo se edfinancial market conditions, partially offset by an increase in gains on sale ofsecurities in the general account. Moreover, increased expenses incurred by strong
sales of new policies also contributed to the decrease in profit.
Net income decreased 12.8% year on year, to ¥37.0 billion.

(Left hand graph)(Left-hand
New policy amount for the total of individual life insurance and individual
annuities increased 8.0% year on year, to ¥5,151.3 billion, exceeding ¥5trillion and reaching the highest level to date.
This increase was because of higher sales of variable life insurance
reflecting the efforts to strengthen sales of death protection type products
and the brisk demand prior to the product revisions
revisions. Sales of variableannuities also increased.
The number of new policies increased 3.8% year on year, to 629 thousand
policies.
(Right-hand graph)
Annualized premiums from new policies increased 11.0% year on year, to¥85 0 billi¥85.0billion, dued tot higher
hi h sales
l off variable
i bl lif
life iinsurance, llump-sum
payment whole life insurance and variable annuities.
Of which, the figure for third-sector products was up 2.8% year on year, to¥15.7 billion.

Sony Life’s policy amount in force which reflects new policy amount and lapse
and surrender amount, is shown here.
(Left-hand graph)
Policy amount in force for the total of individual life insurance and individual
annuities increased 5.3% year on year, to ¥43.1 trillion, due to strong sales ofnew policies.
The numberThb off policies
li i iin fforce iincreased
d 5.6%
6% year on year, to ¥¥7.04
04 million
illipolices.
(Right-hand graph)
Annualized premiums from insurance in force increased 6.2% year on year, to¥781.3 billion. Of which, the figure for third-sector products was up 4.0% year onyyear,, to ¥179.7 billion.

The lapse and surrender rate decreased 0.63 percentage points year on year, to4.72%.(Left-hand graph)
Income from insurance premiums increased 12.5% year on year, to ¥1,028.0
billion. This increase was because of strong sales of variable life insurance anda new product, “Lump-sum Payment Whole Life Insurance (Non-notificationtype), launched in May 2015, in addition to steady growth in policy amount inforce.
(Right-hand graph)
IInterest incomeiandd didividends
id d iincreased
d 5.9%
9% year on year, to ¥141
¥141.44 billibillion,reflecting an expansion in investment assets along with business expansion.

(Left-hand graph)Core profit was down 43.8% year on year, to ¥43.0 billion, due to a significant
increase in provision of policy reserves for minimum guarantees for variable life
insurance as a result of an increase in new policies and the worsened financial
market conditions despite higher positive spread. Moreover, increased expenses
incurred by strong sales of new policies also contributed to the decrease in profit.
(Ri h h d graph)(Right-handh)
Ordinary profit decreased 23.7% year on year, to ¥60.7 billion, due to the decrease incore profit despite an increase in gains on sale of securities in the general account.

The number of Lifeplanner sales employees as of March 31, 2016, was 4,612, up
283 ffrom MarchM h 31
31, 2015
2015.
As of March 31, 2016, Sony Life has already achieved medium-term target of thenumber of Lifeplanner sales employees to be over 4,600 by the end of FY2017, byhiring 577 sales personnel for FY2015.
The number of Lifeplanner sales employees steadily increased, reflecting Sony
Life’s initiatives to promote skilled personnel to office managers responsible forrecruiting new Lifeplanner sales employees.

Here is a breakdown of Sony Life’s general account assets as of March 31, 2016,
compared with that as of March 31, 2015.
Sony Life continued to invest in ultralong-term bonds.
Moreover, Sony Life has begun investing in ultralong-term Fiscal Investment andLoan Program (FILP) agency bonds and corporate bonds under the negativeinterest rates environment.

Positive spread for FY2015, increased ¥2.3 billion year on year, to ¥15.3 billion,
due to a lower average assumed interest rate reflecting an acquisition of newpolicies.
We expect to secure positive spread in FY2016 although an investment yield forcore profit declined due to lower interest rates.

As of March 31, 2016, Sony Life’s non-consolidated solvency margin ratio was
2,722.8%, up 167.8 percentage points from March 31, 2015, remaining at a highlevel.

Sony Assurance reached record high in ordinary revenues, ordinary profit and netincome.
Sony Assurance’s ordinary revenues increased 4.2% year on year, to ¥96.9
billion, due to an increase in net premiums written primarily for its mainstay
automobile insurance.
Ordinary profit increased 11.2% year on year, to ¥4.6 billion, due to a decline inprovision for reserve for outstanding losses led by a lower car accident ratio, as
well as the rise in ordinary revenues despite higher operating expenses
expenses.
Net income increased 15.8% year on year, to ¥2.5 billion.

(Left-hand graph)
The number of policies in force for the total of automobile insurance and medical
and cancer insurance steadily increased 5.8% year on year, to 1.79 million
policies.
Net premiums written increased 4.2% year on year, to ¥95.5 billion due to astable sale of automobile insurance.
(Right-hand graph)
Ordinary profit increased year on year as described before.
Adjusted ordinary profit is an profit indicator on a managerial accounting basis.
The figure is calculated by adjusting the amount of provision(reversal) for
catastrophe reserve to ordinary profit.
Adjusted ordinary profit was ¥7.6 billion.

(Left-hand graph)
The Earned/Incurred (E.I.) loss ratio decreased 1.0 percentage points year onyear, to 63.3%.
The net expense ratio rose 0.4 percentage points year on year, to 27.1%, mainly
due to higher advertising expenses.
Consequently, the sum of the E.I. loss ratio and the net expense ratio declined
0.6 percentage points year on year, to 90.4%.
(Right-hand graph)
The net loss ratio was up 0.2 percentage points year on year, to 57.8%.
This is different from the E.I. loss ratio, which reflects an increase or a decreasein provision for reserve for outstanding losses.
The combined ratio (the sum of the net loss ratio and the net expense ratio) wasup 0.5 percentage points year on year, to 84.8%.

As of March 31, 2016, Sony Assurance’s non-consolidated solvency margin ratio
was 693.5%, rose 63.9 percentage points from a year earlier, showing that Sony
Assurance has maintained a financial soundness.

Sony Bank’s consolidated ordinary revenues decreased 1.3% year on year, to¥37.9 billion and consolidated ordinary profit decreased 18.3% year on year, to ¥5.9billion. This is because of a decline in gains on sale of bonds despite higher
revenues related to mortgage loans.
On a non-consolidated basis, Sony Bank s’ ordinary revenues and ordinary profit
decreased year on year as the same reasons as in the consolidated results.

We break down gross operating profit on a managerial accounting basis tofacilitate an understanding of operational sources of revenues and profits.
(Left-hand table)
Net interest income increased 3.0% year on year, to ¥18.8 billion, led by thegrowing balance of mortgage loans.
Net fees and commissions decreased 1.6% year on year, to ¥0.9 billion, due tolower volume on foreign exchange trading by customers which was active in theprevious fiscal yearyear, despite higher gains on fees and commissions related to
mortgage loan business .
Consequently, gross operating profit on a core profit basis increased 2.7% year
on year, to ¥19.7 billion, and net operating profit on a core profit basis decreased
3.8% year on year, to ¥3.8 billion owing to higher operating expenses.
(Right-hand graph)
The yield on investment for FY2015 was 1
1.20%.
20%
The yield on financing for FY2015 was 0.27%.
Consequently, interest spread for FY2015 was 0.93%.

(Left-hand graph)
As of March 31, 2016, deposits (the sum of Japanese yen and foreign currency
deposits) amounted to ¥1,923.5 billion, up ¥45.2 billion from March 31, 2015.
Of which, yen deposit balance amounted to ¥1,587.9 billion, up ¥36.9 billion fromMarch 31, 2015, reflecting special interest rate offerings for yen time deposits inthe second half.
The yen-denominated balance of foreign currency deposits amounted to ¥335.5billion, up ¥8.3 billion from March 31, 2015, due to higher foreign currency
purchases, driven by rising market sentiment that yen depreciation had nearlystopped.
(Right-hand graph)
Loan balance as March 31, 2016 expanded to ¥1,344.1 billion, up ¥156.9 billion
from March 31, 2015, due to recording the highest amount of new mortgage
loans per year.

(Left-hand graph)
As of March 31, 2016, the balance of securities amounted to ¥620.9 billion, down
¥109.0 billion from March 31, 2015.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of March 31, 2016, Sony Bank’s non-consolidated capital adequacy ratio((domestic criteria)) was 9.90%,, down 0.76 percentage
pg ppoints from March 31,,
2015, maintaining financial soundness.

For FY2016, stable and sustainable business growth is expected in all thebusinesses: life insurance, non-life insurance and banking.
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 to owners of the parent is expected to increase due to theimpact of a reduction in the effective corporate income tax rate for FY2016,
compared with FY2015’s negative impact of the reversal of deferred tax assets,accompanied by the cut in corporate income tax.

For FY2015, we plan to pay a year-end dividend of ¥55 per share, up ¥15 year onyear. This will be the 4th consecutive year of dividend increases.
For FY2016, we expect to maintain this level of dividends (¥55 per share), after
taking into account our business environment surrounding the Group and ourforecast of consolidated financial results.

Sony Life’s MCEV as of March 31, 2016 decreased ¥323.3 billion from December
31, 2015, to ¥1,063.7 billion due to a significant decline in interest rates inJapanese yen. While the value of existing business decreased significantly, mostof the decrease was offset by an increase in the adjusted net worth with thebenefit of ALM.
New business value for FY15 (12M) was ¥35.2 billion mainly due to a significant
decline in interest rates in Japanese yen despite a favorable acquisition of newpo c espolicies.
In the past, Sony Life calculated new business value based on economic
assumptions as of the valuation date. This method has been changed to one ofaccumulating new business value for each quarter. This change makes new
business value easier to understand, as it is based on the most recent products
and economic assumptions.

This slide provides a breakdown of new business value for FY15.3Q (9M) andFY15 (12M).
New business value for each of the quarters through FY15.3Q is calculated using
economic assumptions at the end of each quarter. These amounts are ¥12.5billion, ¥9.3 billion and ¥15.2 billion.
Under the new method, the new business value for FY15.3Q (9M) is this total, or¥37.0 billion.
However, underHd theh previous
imethodh d theh fi
figure ffor FY1
FY15.3Q
3Q (9M) amounted
d to¥27.3 billion, using economic assumptions as of the valuation date (end ofFY15.3Q). Under the new method, the figure for FY15.3Q (9M) is ¥37.0 billion,
representing a ¥9.7 billion difference. The main reason for this difference is thatthe previous method reflected valuation differences (reduced-value) due todifferences in economic assumptions on products for which sales had alreadybeen discontinued.
Calculating with economic assumptions as of March 31, 2016, new businessvalue for FY15.4Q (3M) was negative ¥1.7 billion, and the new business margin
was negative 0.5%. New business value for FY2015 was ¥35.2 billion,
representing the total of business value for FY15.3Q (9M), of ¥37.0 billion, andFY15.4Q (3M), of negative ¥1.7 billion.
By responding promptly with measures including premium revisions, Sony Life isworking to improve profitability to ensure steady growth in MCEV even under low
interest rates environment.

The risk amount based on economic value as of March 31, 2016 amounted
to ¥1,019.2 billion, significantly up from December 31, 2015, owing to anincrease in insurance risk reflecting lower interest rates in Japanese yen.
The economic solvency ratio (ESR), the ratio of MCEV to the risk amountbased on economic value was 104%, due to a decrease in MCEV and anincrease in the risk amount based on economic value.
ESR fell sharply, but going forward Sony Life will monitor interest rate
fluctuations and consider response measures aimed at improvingsoundness.