Consolidated Financial Summary (Japanese GAAP)
for the Three Months Ended June 30, 2016
August 10, 2016
Sony Financial Holdings Inc.
(URL: http://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—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)Company name:1.

Consolidated financial results for the three months ended June 30, 2016
(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change

326,614(8.6)

25,504

34.6

17,66537.6

357,31217.8

18,952(13.8)

12,834(11.9)For the three months ended
June 30, 2016
For the three months ended
June 30, 2015
Note: Comprehensive Income:For the three months ended June 30, 2016: ¥30,411million:
For the three months ended June 30, 2015: ¥5,420 million:

Yen

For the three months ended
June 30, 2016
For the three months ended
June 30, 2015

Yen

40.61

—

29.50

—

Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of June 30, 2016

10,427,029

610,150

5.8

As of March 31, 2016

10,352,114

604,377

5.8

Note: Shareholders' equity:2.

461.1%(76.0%)Net Income per
Share(Fully Diluted)

Net Income per
Share

(2)

Profit attributable to owners of
the parent

Ordinary Profit

As of June 30, 2016: ¥608,798million
As of March 31, 2016: ¥603,048 million

Dividends
Dividend per Share

Record date
For the year ended
March 31, 2016
For the year ending
March 31, 2017
For the year ending
March 31, 2017
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

—

0.00

—

55.00

55.00

0.00

—

55.00

55.00

—

Note: Changes in dividend forecast since the most recent public announcement:

None

3.

Forecast of consolidated financial results for the year ending March 31, 2017
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

For the year ending
March 31, 2017
4.

Ordinary Profit

Profit attributable toowners of the parent

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,450,000

6.5

71,000(0.1)

46,000

6.1

Net Income per
Share
Yen

105.75Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries accompanying changes
in scope of consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) 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: Yes(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
Note: For details, please refer to the section entitled “Changes in accounting policies, accounting estimates and restatements of the Consolidated
Financial Statements” under “I. Notes Regarding Summary Information” on page 2 of the attachment.

(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of June 30, 2016:
As of March 31, 2016:(b) Number of treasury shares
As of June 30, 2016:
As of March 31, 2016:(c) Weighted-average number of shares
For the three months ended June 30, 2016:
For the three months ended June 30, 2015:

435,000,000 shares
435,000,000 shares
75 shares
75 shares
434,999,925 shares
434,999,945 shares

Status of quarterly review procedures
Quarterly review procedures are completed in accordance with Article 193-2-1 of the Financial Instruments and Exchange Law
of Japan. However, quarterly consolidated financial statements in this document are not subject to such quarterly review
procedures.

Content of Supplemental Materials
I.

Notes Regarding Summary Information
1.

Changes in significant subsidiaries during the period under review (changes in specified
subsidiaries accompanying changes in scope of consolidation) ・・・・・・・・・・・・・・・・

2.

Changes in accounting policies, accounting estimates and restatements of theConsolidated Financial Statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

II.

III.

2
2

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

3(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・・

8

3.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9

4.

Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9

Attachment
Consolidated Financial Results for the Three Months Ended June 30, 2016 and Sony Life’s
MCEV as of June 30, 2016・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11* The Conference Call for explaining the Sony Financial Group financial results will be held at 16:00 (Tokyo),
August 10, 2016.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the presentation materials with speech text on August 10, 2016 after 15:00, and its Q&A
summary at a later date on Earnings Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/en/financial_info/results/index.html* On August 10, 2016, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce their financial results forthe three months ended June 30, 2016. SFH prepared an English-language summary of those Japanese
announcements made by the above subsidiaries, solely for convenience of non-Japanese readers.

1

I. Notes Regarding Summary Information
1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries Accompanying
Changes in scope of consolidation)
None.
Although not specified subsidiaries, Sony Lifecare Inc., a holding company that oversees the Sony Financial Group’s
operations in the nursing care business, and nursing-care provider Lifecare Design Inc., which were non-consolidated
subsidiaries in the previous consolidated fiscal year, have been included in the scope of consolidation, due to a rise in theirimportance from the first quarter of the fiscal year ending March 31, 2017. The results of both companies are included in the“other” category in the consolidated statements of income.

2. Changes in accounting policies, accounting estimates and restatements of the Consolidated Financial Statements
Changes in accounting policies(Application of the “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26,
March 28, 2016)(hereinafter, the “Recoverability Implementation Guidance”) )The Sony Financial Group has applied the Recoverability Implementation Guidance from the first quarter of the fiscal year
ending March 31, 2017 and partially revised the accounting method of recoverability of deferred tax assets.
The Recoverability Implementation Guidance has been applied in accordance with the transitional treatment set forth in
Article 49(4) of the Recoverability Implementation Guidance. The differences between (i) the amounts of deferred tax assets
and deferred tax liabilities when provisions applicable from ① to ③ of Article 49(3) of the Recoverability Implementation
Guidance were applied as of April 1, 2016, and (ii) the amounts of deferred tax assets and deferred tax liabilities at the end of
the fiscal year ended March 31, 2016, were added to retained earnings as of April 1, 2016.
As a result, deferred tax assets increased ¥48 million and retained earnings rose ¥105 million, while deferred tax liabilities
decreased ¥56 million as of April 1, 2016.

2

II. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016

As of June 30, 2016

Cash and due from banks¥144,364¥105,664

Call loans and bills bought

88,20087,600

Monetary claims purchased

884

806

AssetsMonetary trusts

303,973

306,184

Securities

8,021,493

8,046,510

Loans

1,515,833

1,568,608

Tangible fixed assets

121,376

121,618

Intangible fixed assets

29,887

28,799Due from agencies–0

Due from reinsurers

399

596

Foreign exchanges

1,139

2,268

Other assets

115,474

149,031

Net defined benefit asset

2,216

2,267

Deferred tax assets

8,181

8,408

Reserve for possible loan losses(1,308)(1,334)¥10,352,114¥10,427,029

Total Assets3

(Millions of yen)
As of March 31, 2016

As of June 30, 2016

¥7,504,420¥7,600,823

67,17766,4207,432,237

7,529,199

5,006

5,203

Due to agencies

2,455

1,791

Due to reinsurers

626

1,387

1,912,592

1,900,749

40,00040,000Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends

Deposits
Borrowed money
Foreign exchanges

87

70

Bonds payable

20,00020,000

Other liabilities

183,835

163,976

Reserve for employees’ bonuses

3,557

1,702

Net defined benefit liability

29,26329,906351

338

44,41044,77344,41044,773

5,647

10,869488

488

9,747,736

9,816,878

Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

238,079

231,106(0)(0)

453,256446,283

Net unrealized gains (losses) on other securities, net of taxes

157,364

170,011Net deferred gains (losses) on hedging instruments, net of taxes(2,347)(2,460)Land revaluation, net of taxes(1,465)(1,465)Remeasurements of defined benefit plans, net of taxes(3,760)(3,570)Total accumulated other comprehensive income

149,791

162,515

1,329

1,351

Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Deferred tax liabilities
Deferred tax liabilities on land revaluation
Total Liabilities
Net Assets

Treasury stock
Total shareholders’ equity

Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

4604,377

610,150¥10,352,114¥10,427,029

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the three months ended
June 30, 2015

For the three months ended
June 30, 2016

Ordinary Revenues¥357,312¥326,614

Ordinary Revenues from the Life Insurance Business

323,250

291,334

Income from insurance premiums

254,240

240,793

Investment income

67,593

46,694(Interest income and dividends)

35,25035,824(Income from monetary trusts, net)

3,148

1,117

–

9

(Gains on trading securities, net)
(Gains on sale of securities)

3,631

917

(Gains on derivatives, net)

–

8,821

24,781

–

1,416

3,846

24,75926,04624,43225,064

24,37525,048(Interest and dividends on deposits of premiums)

13

16(Reversal of reserve for outstanding claims)

43

–

315

964

323

333

6

648

(13)

(16)

10

16

9,303

9,184

6,323

6,321

(Interest income on loans)

3,557

3,844

(Interest income and dividends on securities)

2,742

2,459

Fees and commissions

1,491

1,666

Other operating income

1,379

1,140

Other ordinary income

107

56

–

49

–

49

(Gains on separate accounts, net)
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)

Investment income(Interest income and dividends)(Gains on sale of securities)(Transfer to interest and dividends on deposits of premiums)
Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

Other
Other ordinary income(Continued)

5

(Millions of yen)
For the three months ended
June 30, 2015

For the three months ended
June 30, 2016

Ordinary Expenses¥338,359¥301,109

Ordinary Expenses from the Life Insurance Business

308,876

269,889

91,39785,62122,063

22,772

Insurance claims and other payments(Insurance claims)(Annuity payments)

2,600

2,806

(Insurance benefits)

11,054

13,568(Surrender payments)

51,97044,459(Other payments)

3,227

825

176,772

93,9982,590－

174,181

93,99800Investment expenses

3,939

48,692(Interest expenses)

89(Losses on trading securities, net)

59

–

2,097

–

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders' dividends(Losses on derivatives, net)–

43,937

Operating expenses(Losses on separate accounts, net)

30,49533,593

Other ordinary expenses

6,271

7,983

22,45723,010Underwriting expenses

16,481

16,922(Net losses paid)

11,268

11,734(Loss adjustment expenses)

1,739

1,805

267

320

–

97

3,205

2,963

1

–

1

–

5,973

6,086

1

0

Ordinary Expenses from the Non-life Insurance Business(Net commission and brokerage fees)(Provision for reserve for outstanding losses)(Provision for underwriting reserves)
Investment expenses(Losses on sale of securities)
Operating, general and administrative expenses
Other ordinary expenses(Continued)

6

(Millions of yen)
For the three months ended
June 30, 2015
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Other
Other ordinary expenses
Ordinary Profit
Extraordinary Losses

For the three months ended
June 30, 2016

¥7,025¥7,956

2,313

2,143

1,243

1,238

522

783

0

80

4,124

4,868

65

80

–

252

–

252

18,95225,504336

363

Losses on disposal of fixed assets

00

Impairment losses

0

0

336

363

Provision for reserve for price fluctuations

336

363

Provision for Reserve for Policyholders' Dividends

357

403

Income Before Income Taxes

18,25824,738

Income Taxes – Current

5,981

7,018

Income Taxes – Deferred

(563)

32

Total Income Taxes

5,417

7,051

Profit12,84017,6875

22¥12,834¥17,665

Provision for special reserves

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

7

(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the three months ended
June 30, 2015
Profit

For the three months ended
June 30, 2016

¥12,840¥17,687

Net unrealized gains (losses) on other securities, net of taxes(7,771)

12,646

Net deferred gains (losses) on hedging instruments, net of taxes

185

(112)

0

–

165

190

(7,420)12,724¥5,420¥30,411

5,413

30,3896

22

Other comprehensive income

Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of taxes
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests83． Segment Information(1) Segment Information by reporting segment
For the three months ended June 30, 2015
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥323,250
713
323,963¥14,915¥24,759
024,759¥2,122¥9,30355
9,358¥1,864

Total¥357,312
769
358,081¥18,902

For the three months ended June 30, 2016
Millions of yen
Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Non-life
insurancebusiness¥291,334
756
292,090¥22,028

Bankingbusiness¥26,046
026,046¥2,865¥9,184
50
9,234
¥772

Total

¥326,564
807
327,372¥25,666

Other

¥49
–
49
¥(214)

Total¥326,614
807
327,421¥25,452(Note) “Other” includes Ordinary revenues and Segment profit from Sony Lifecare Inc., a holding company that oversees the SonyFinancial Group’s operations in the nursing care business, and nursing-care provider Lifecare Design Inc., which have been includedin the scope of consolidation from the first quarter of the fiscal year ending March 31, 2017.

(2) Reconciliations of the totals of reportable segments’ profit to quarterly consolidated statement of income
Millions of yen
For the three months ended
For the three months ended
June 30, 2015
June 30, 2016
¥18,902¥25,666
–
(214)
1
2
48
50

Totals of reporting segments
Other
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in quarterly consolidated
statement of income¥18,952(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None

4． Subsequent Events
There were no applicable subsequent events.

9¥25,504

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ insignificant respects from the financial information reported by Sony Corporation, the SFH’s parent company, which
prepares its financial statements in accordance 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.**Sony Lifecare Inc. and Lifecare Design Inc. are included in the scope of consolidation from this first quarter
ended June 30, 2016.
Affiliated companies accounted for under the equity method:
AEGON Sony Life Insurance Co., Ltd.
SA Reinsurance Ltd.

Statements made in this press release concerning the current plans, expectations, strategies and beliefs of theSony Financial Group. Any statements contained herein that are not historical facts are forward-looking
statements or pro forma information. Forward-looking 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, business performance, events or conditions.
Forward-looking statements, whether spoken or written, may also be included in other materials released tothe 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 informationthat is currently available to them. As such, they are subject to various risks and uncertainties, 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. SonyFinancial 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 thispresentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitationof any offer to buy or subscribe to any securities, nor shall it or any part of it form the basis of or be relied onin connection with any contract or commitment whatsoever in Japan or abroad.

For inquiries:
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5290-6500
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

10

III. Attachment
Content of Presentation Material

Consolidated Financial Results for the Three Months Ended June 30, 2016 andSony Life’s Market Consistent Embedded Value as of June 30, 2016
・Consolidated Operating Results for the Three Months Ended June 30, 2016・・・・・・・ 3
・Consolidated Financial Forecast for the Year Ending March 31, 2017・・・・・・・・・・ 28
・Sony Life’s MCEV and ESR as of June 30, 2016・・・・・・・・・・・・・・・・・・ 30
・Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 38

11

Attachment

Presentation Material

Consolidated Financial Results
for the Three Months Ended June 30, 2016
andSony Life’s MCEV as of June 30, 2016

Sony Financial Holdings Inc.
August 10, 2016
Sony Financial Holdings Inc. All Rights Reserved

ContentConsolidated Operating Results for the Three Months Ended June 30, 2016

P.3



Forecast of Consolidated Financial Results for the Year Ending March 31, 2017 P.28

Sony Life’s MCEV and ESR as of June 30, 2016

P.30



Appendix

P.38

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group. Anystatements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking 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, business performance, 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 onassumptions, 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, 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 constitute or form part of any offer for sale or subscription of orsolicitation 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 withany 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

Attachment

Consolidated Operating Results for
the Three Months Ended June 30, 2016
(FY16.1Q)

Sony Financial Holdings Inc. All Rights Reserved

3

Highlights of Consolidated Operating Performancefor FY16.1Q (1)Consolidated ordinary revenues

Life
Insurancebusiness

357.3(8.6%)

326.6

ChangeOrdinary revenues

323.9

292.0

(31.8)(9.8%)

Ordinary profit+47.7%

14.9

22.0

+7.1

Ordinary revenues

24.7

26.0

+1.2

+5.2%

Ordinary profit

2.1

2.8

+0.7

+35.0%

Bankingbusiness

Ordinary revenues

9.3

9.2

(0.1)

(1.3%)

Ordinary profit

1.8

0.7

(1.0)

(58.6%)

(0.7)

(0.7)

+0.0

―

25.5
Consolidated

18.9

FY15.1Q

FY16.1Q

Non-life
Insurancebusiness

Others (*1)

+34.6%

FY15.1Q(Billions of yen)

Consolidated ordinary profit

Ordinary revenues

0.0

(0.1)

(0.2)

―

Ordinary revenues

357.3

326.6

(30.6)(8.6%)

Ordinary profit

18.9

25.5

+6.5

+34.6%

Profit attributableto owners of theparent

12.8

17.6

+4.8

+37.6%

Ordinary profit*Ordinary profit in “Intersegment adjustments” is mainly from SFH. Nursing care business has
been included in the scope of consolidation from FY16.1Q.
*Comprehensive income : FY15.1Q: ¥5.4 billion, FY16.1Q: ¥30.4 billion

FY16.1Q(Billions of yen)(Billions of yen)

Net assets

16.3.31

16.6.30

Change from
16.3.31

604.3

610.1

+5.7

+1.0%

10,352.1

10,427.0

+74.9

+0.7%

Consolidated
Total assets

Sony Financial Holdings Inc. All Rights Reserved

4Attachment

Highlights of Consolidated Operating Performancefor FY16.1Q (2) Life Insurance Business: Policy amount in force increased steadily during FY16.1Q. However, ordinary

revenues decreased compared with FY15.1Q due to a decrease in insurance premium revenues led by adecline in sales of single premium products and a deterioration in investment performance in the separate
account reflecting the worsened financial market conditions. Ordinary profit increased year on year due toa significant decline in provision of policy reserves for minimum guarantees for variable life insurance
owing to a lower acquisition of new policies and a decrease in insurance claim payments.
 Non-life Insurance Business: Ordinary revenues and ordinary profit expanded year on year, owing to anincrease in net premiums written primarily for mainstay automobile insurance and an increase in gains onsale of securities.
 Banking Business: Ordinary revenues were essentially flat year on year. Interest income on loans

increased in line with a favorably growing balance of mortgage loans, whereas interest income anddividends on securities decreased. Ordinary profit decreased significantly year on year, due to an increasein operating expenses, mainly in advertising expenses for card loan business.
 Consolidated ordinary revenues decreased 8.6% year on year, to ¥326.6 billion. Ordinary revenues fromthe life insurance business decreased, while ordinary revenues from the non-life insurance businessincreased. Ordinary revenues from the banking business were essentially flat year on year. Consolidated
ordinary profit increased 34.6% year on year, to ¥25.5 billion. By business segment, ordinary profit fromthe life insurance and the non-life insurance businesses increased, whereas ordinary profit from thebanking business decreased. Profit attributable to owners of the parent was up 37.6% year on year, to¥17.6 billion due to the increase in ordinary profit.
Sony Financial Holdings Inc. All Rights Reserved

5Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues

Ordinary profit

FY15.1Q

FY16.1Q

323.9

292.0

(31.8)(9.8%)

Income from insurance premiums

254.5

241.1

(13.4)(5.3%)

Investment income(30.9%)(Billions of yen)
Ordinary revenues

323.9

292.0
(9.8%)

23.3
15.1+54.4%

67.7

46.8(20.8)

Interest income and dividends

35.3

35.9

+0.5

+1.7%

Income from monetary trusts, net

3.1

1.1

(2.0)

(64.5%)

Gains on sale of securities

3.6

0.9

(2.7)

(74.7%)

Gains on derivatives, net

―

8.8

+8.8

―

24.7

―

(24.7)(100.0%)(13.0%)

Gains on separate accounts, net
Ordinary expenses

308.7

268.6

(40.1)

Insurance claims and other payments

91.3

85.6

(5.7)

(6.3%)

Provision for policy reserves and others

176.7

93.9

(82.7)(46.8%)

4.0

48.7

+44.7

―

2.0

―

(2.0)

(100.0%)Investment expenses

FY15.1Q

Losses on derivatives, net

FY16.1Q (Billions of yen)

◆ Ordinary revenues decreased but ordinary profit
increased year on year.
◆ Income from insurance premiums decreased due to a
decline in sales of single premium products.
◆ Investment income decreased due to a deterioration in
investment performance in the separate accountreflecting the worsened financial market conditions.
◆ Ordinary profit increased due to a significant decline inprovision of policy reserves for minimum guarantees forvariable life insurance owing to a lower acquisition of
new policies and a decrease in insurance claim
payments.

Change

―

43.9

+43.9

―

30.6

33.7

+3.0

+10.1%

Ordinary profit

15.1

23.3

+8.2

+54.4%Net income

10.2

16.6

+6.4

+62.6%

Losses on separate accounts, net
Operating expenses(Billions of yen)

16.3.31

16.6.30

Change from 16.3.31

Securities

7,273.3

7,337.0

+63.6

+0.9%

Policy reserves

7,336.5

7,430.5

+93.9

+1.3%

482.1

499.1

+16.9

+3.5%

150.6

164.1

+13.5

+9.0%

8,035.4

8,130.5

+95.1

+1.2%

850.3

831.9

(18.3)(2.2%)Net assets
Net unrealized gains on other securities
Total assets
Separate account assets

Sony Financial Holdings Inc. All Rights Reserved

6

Attachment

Overview of Operating Performance:
Sony Life (Non-consolidated)(Billions of yen)

New policy amount

FY15.1Q

FY16.1Q

Change<Reasons for changes>

1,324.2

1,260.0(4.9%)◆ Decreased due to lower salesof variable life insurance
despite higher sales of U.S.
dollar-denominated insurance.

Lapse and surrender amount

495.0

479.8

(3.1%)

Lapse and surrender rate

1.21%

1.11%

(0.1pt)Policy amount in force

41,609.6

43,634.2

+4.9%

22.3

20.5

(8.2%)

Annualized premiums from new policies
Of which, third-sector products

3.9

4.1

+5.9%

747.6

790.8

+5.8%

174.8

182.2

+4.2%

FY15.1Q

FY16.1Q

ChangeGains from investment, net (General account)

38.9

41.9

+7.9%

Core profit

13.3

14.0

+5.4%

Positive spread

4.1

3.2

(22.0%)

16.3.31

16.6.30

Change from
16.3.312,722.8%

2,831.3%+108.5pt

Annualized premiums from insurance in force
Of which, third-sector products(Billions of yen)

Non-consolidated solvency margin ratio

Notes:
1. Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as
the total of individual life insurance and individual annuities.
2. The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.

◆ Decreased due to lower salesof variable life insurance andeducational endowment
insurance despite favorable
sales of term life insurance andU.S. dollar-denominatedinsurance.
◆ Core profit rose year on year
due to an decrease ininsurance claim payments,
despite a fall in the positive
spread and an increase in theprovision of policy reserves forminimum guarantees forvariable life insurance due to aworsening market. In ordinary
profit, however, the negative
impact on profit of policy
reserves for minimum
guarantees associated withthis worsening market wasoffset by hedge gains, which
are included in capital gains
and losses.

Sony Financial Holdings Inc. All Rights Reserved

7

Operating Performance :Sony Life (Non-consolidated) (1)
Number and Amount of New Policies(Individual Life Insurance + Individual Annuities)
New policy amount

15,000

Annualized premiums from new policies

Of which, third-sector(Thousands ofpolicies)(15.1%)(Billions of yen)

149

154

1.5

(Individual Life Insurance + Individual Annuities)

Number of new policies

176(Trillions of yen)

Annualized Premiums from New Policies

150

1.32
1.13

1.26
(4.9%)

25

20

10,00022.3(8.2%)

20.5

3.7

3.9

+5.9%

4.1

FY14.1Q

FY15.1Q

18.9

100

1.0

15

50

5,000

0.5

10

5
00
FY14.1Q

FY15.1Q

FY16.1Q

00Sony Financial Holdings Inc. All Rights Reserved

FY16.1Q

8

Attachment

Sony Life’s Product Portfolio
Annualized Premiums from New Policies by Product
FY16.1Q

FY15¥85.0 billion¥20.5 billion

Yen whole life
19％
Endowment/
Annuities
29% U.S. dollar-denominatedwhole life 5%Single premium
whole life3%
Protection-type(term life)
44%

Yen whole life
28％

Endowment/
Annuities
28%
Single premium
whole life U.S. dollar-denominatedwhole life 2%
5%
Protection-type(term life)
37%

Sony Financial Holdings Inc. All Rights Reserved

9Operating Performance :Sony Life (Non-consolidated) (2)
Number and Amount of Policies in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

Policy amount in force(Trillions of yen)

50

+5.1%

(Millions of policies)

7.04

7.13

6.78
41.6

+4.9%

Annualized premiums from insurance in force

Number of policies in force

43.1

40

+1.2%

43.6

7

Of which, third-sector(Billions of yen)

800

747.6

+5.8%

790.8

781.3
+1.2%

6

+1.1%

600
5

30

4

400

3

20

2
1
0

0
15.6.30

16.3.31

16.6.30

+4.2%

200

10

174.8

179.7

15.6.30

16.3.31

+1.4%

182.2

0

Sony Financial Holdings Inc. All Rights Reserved

16.6.30

10

Attachment

Operating Performance :Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate
(Annual)

Lapse and surrender rate
(1Q)

(%)

10

8

5.35

6

4.72

4

2

(0.10pt)

1.15

1.21

FY14

FY15

1.11

0
FY16

*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.

Sony Financial Holdings Inc. All Rights Reserved

11

Operating Performance :Sony Life (Non-consolidated) (4)Income from Insurance Premiums(Billions of yen)(Billions of yen)

40

300

254.5
250

Interest Income and Dividends

220.7

35.9

35.3

241.1

32.5

+1.7%

30

(5.3%)

200
20

150
100

10
50
0

0
FY14.1Q

FY15.1Q

FY16.1Q

FY14.1Q

Sony Financial Holdings Inc. All Rights Reserved

FY15.1Q

FY16.1Q

12

Attachment

Operating Performance :Sony Life (Non-consolidated) (5)Core Profit

Ordinary Profit(Billions of yen)

20

(Billions of yen)

18.7

15

25

13.3

20

14.0

+5.4%

23.3
＋54.4%

17.6
15.1

15
10
10
5

5

0

0
FY14.1Q

FY15.1Q

FY14.1Q

FY16.1Q

FY15.1Q

FY16.1Q(Reference) Main differences from Core Profit(Reference) Impact on core profit(Billions of yen)

FY14.1Q

FY15.1Q

FY16.1Q

Positive spread

3.0

4.1

3.2

Provision of policy reserves for minimum
guarantees for variable life insurance (*)

(2.1)

(6.6)

(8.9)

Others

17.8

15.8

19.7

Capital gains (losses) excluding gains or losses
on hedges (*)
Gains (losses) on hedges of variable insurance
Provision of contingency reserve (*)(Billions of yen)

FY14.1Q

FY15.1Q

FY16.1Q

0.2

5.3

6.1

－

(1.9)

4.9

(1.2)

(1.5)

(1.7)

*: “Provision of policy reserves for minimum guarantees for variable life insurance” and “Provision of contingency reserve” are described as negative amount.
Capital gains (losses) exclude gains or losses on hedges of variable life insurance..

Sony Financial Holdings Inc. All Rights Reserved

13

Operating Performance :Sony Life (Non-consolidated) (6)
Number of Lifeplanner Sales Employees+330(Number)

4,682

4,612
4,500

4,329

4,352

15.3.3115.6.30

4,415

4,376

15.9.30

15.12.31

+70

4,000

3,500

3,000
0

Sony Financial Holdings Inc. All Rights Reserved

16.3.31

16.6.30

14

Attachment

Operating Performance :Sony Life (Non-consolidated) (7)Breakdown of General Account Assets
16.3.31(Billions of yen)

16.6.30<Asset management review>

Amount%Amount

%6,351.1

88.4%

6,453.8

88.4%

Japanese stocks

33.3

0.5%

33.3

0.5%

Foreign bonds

70.1

1.0%

59.6

0.8%

Japanese governmentand corporate bonds

Foreign stocks

23.0

0.3%

20.7

0.3%

Monetary trusts

280.9

3.9%

283.1

3.9%

Policy loans

171.6

2.4%

172.9

2.4%

Real estate*

115.8

1.6%

115.4

1.6%

Cash and call loans

52.5

0.7%

44.6

0.6%

Others

86.4

1.2%

114.7

1.6%

7,185.0

100.0%

7,298.6

100.0%Total

We have continued to accumulate ultralongterm bonds to match the liability
characteristics of insurance policies withlong-term maturities with the aim of reducing
interest rate risk.
<Bond duration>
Mar. 31, 2015: 20.3 years
Mar. 31, 2016: 21.8 years
Jun. 30, 2016: 22.4 years■ Investment in the monetary trusts is mainly into
Japanese government and corporate bonds.
■ The holding ratio on the real status of Japanese
government and corporate bonds including
those invested in monetary trusts in the generalaccount: As of Jun. 30, 2016: 92.3%(As of Mar. 31, 2016: 92.3%)*Real estate is the total of land, buildings, and construction in progressSony Financial Holdings Inc. All Rights Reserved

15

Operating Performance :Sony Life (Non-consolidated) (8)Non-consolidated Solvency Margin Ratio

(%)

3,000

2,831.3
2,722.8
2,555.0

2,500+108.5pt

2,000

1,500

1,000015.3.31

16.3.31

16.6.30

Sony Financial Holdings Inc. All Rights Reserved

16

Attachment

Highlights of Operating Performance:
Sony Assurance
Ordinary profit

Ordinary revenues

FY15.1Q

FY16.1Q

24.7

26.0

+1.2

+5.2%

Underwriting income

24.4

25.0

+0.6

+2.6%

Investment income

0.3

0.9

+0.6

+205.4%

22.6

23.1

+0.5

+2.4%

Underwriting expenses

16.5

17.0

+0.4

+2.6%

Investment expenses

0.0

―

(0.0)

(100.0%)Operating general andadministrative expenses

6.0

6.1

+0.1

+1.9%

Ordinary profit

2.1

2.8

+0.7

+35.0%Net income

1.4

2.0

+0.5

+37.8%(Billions of yen)

24.7

+5.2%

Ordinary revenues

26.0

Ordinary expenses

2.8
2.1

+35.0%

FY15.1Q

FY16.1Q(Billions of yen)

◆ Ordinary revenues and ordinary profit increased
year on year, owing to an increase in net premium
written primarily for mainstay automobile insurance
and an increase in gains on sale of securities.

ChangeChange from
16.3.31

16.3.31

16.6.30

Underwriting reserves

95.7

98.6

+2.9

+3.1%

Net assets

28.3

28.3

+0.0

+0.3%

Total assets

172.3

173.9

+1.6

+1.0%

(Billions of yen)Sony Financial Holdings Inc. All Rights Reserved

17

Overview of Operating Performance:
Sony Assurance(Billions of yen)

FY15.1Q

FY16.1Q<Reasons for changes>

ChangeDirect premiums written

24.0

24.7

+2.9%

Net premiums written

24.3

25.0

+2.8%

Net losses paid

11.2

11.7

+4.1%

Underwriting profit

1.8

1.8

+4.5%

Net loss ratio

53.4%

54.1%

+0.7ptNet expense ratio

26.3%

26.2%

(0.1pt)Combined ratio

79.6%

80.3%

+0.7pt◆ Increased mainly in its mainstay
automobile insurance.

◆ Remained flat due to a proper
control on overall operating
expenses.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written.
Net expense ratio = Expenses related to underwriting / Net premiums written

FY15.1Q

FY16.1Q

ChangeE.I. loss ratio

58.4%

59.0%

+0.6ptE.I. loss ratio + Net expense ratio

84.7%

85.2%

+0.5ptNotes:
E.I. 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.]

Number of policies in force
Non-consolidated
solvency margin ratio

16.3.31

16.6.30

1.79 million

1.81million

693.5%

732.9％◆ Rose slightly compared with
FY15.1Q results which recorded
a reversal of reserve foroutstanding losses.
Car accident ratio remained at
low levels.

Change from 16.3.31+0.01 million+0.6%+39.4pt

Note: The number of policies in force is the total of automobile insurance and medical and cancer insurance, which accounts for 99% of net premiums written.

Sony Financial Holdings Inc. All Rights Reserved

18

Attachment

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY15.1Q

FY16.1Q

Change

Fire

89

62

(30.4%)

Marine－－－(Millions of yen)

(Millions of yen)

FY15.1Q

FY16.1Q

Change

Fire

13

6

(47.0%)

Marine11(1)(116.4%)

Personal accident

2,156

2,190

+1.6%

Personal accident

2,245

2,281

+1.6%

Voluntary automobile

21,84022,533+3.2%

Voluntary automobile

21,793

22,468

+3.1%

－

－

－

Compulsory
automobile liability

311

293

(5.9%)

24,08624,785+2.9%

24,37525,048+2.8%Compulsory
automobile liability
Total

Total

Net losses paid
(Millions of yen)

*Medical and cancer insurance is included in personal accident.

FY15.1Q

FY16.1Q

ChangeFire00+398.2%Marine12(12)(203.8%)Personal accident

593

609

+2.7%

Voluntary automobile

10,35910,813+4.4%

Compulsory
automobile liability

303

324

+6.8%

Total

11,268

11,734+4.1%

Sony Financial Holdings Inc. All Rights Reserved

19

Operating Performance:
Sony Assurance (1)Ordinary Profit andAdjusted Ordinary Profit

Net Premiums Written andNumber of Policies in Force(Billions of yen)
Voluntary automobile insurance
Personal accident insurance
OthersNumber of policies in force
4(Millions of policies)(Billions of yen)
+4.7%
1.81

30

1.63
23.4

1.72
24.3

+2.8%

25.0
2.2

3

Ordinary profit

Adjusted ordinary profit

3.6
3.4
2.8

2.8

2.7

0.2 1.5
2.1+35.0%

2

20

22.4

1

1
10
0.5

0
FY14.1Q

FY15.1Q

FY16.1Q*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

00

FY14.1Q

FY15.1Q

FY16.1Q

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

(Reference) Provision for catastrophe reserve(Billions of yen)

FY14.1Q
Provision for catastrophe reserve

FY15.1Q

0.7

0.7

FY16.1Q
0.7*Provision for catastrophe reserve is described as positive amountSony Financial Holdings Inc. All Rights Reserved20

Attachment

Operating Performance:
Sony Assurance (2)Earned/Incurred (E.I.) Loss Ratio +Net Expense Ratio
E.I. loss ratio＜参考＞ (Reference) Combined Ratio(Net Loss Ratio+ Net Expense Ratio)

Net loss ratio

Net expense ratio

Net expense ratio

(%)
100

(%)
100

91.0

90.4
82.4

85.2

84.7

80

84.3

84.8

79.1

80

+0.5pt80.3

79.6+0.7pt

60
64.3

63.3

58.4

58.0

60

59.0

57.6

+0.6pt

54.7

53.4

54.1
＋0.7pt

40

40

20

57.8

26.7

27.1

20

(0.1pt)

24.4

26.3

26.2

FY14.1Q

FY15.1Q

FY16.1Q

26.7(0.1pt)

27.1
24.4

26.3

26.2

FY14.1Q

FY15.1Q

FY16.1Q

0

0
FY14

FY15

FY14

Notes:
E.I. 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.]

FY15

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums writtenSony Financial Holdings Inc. All Rights Reserved

21

Operating Performance:
Sony Assurance (3)Non-consolidated Solvency Margin Ratio

(%)

800

732.9%

693.5%
629.6%

600+39.4pt

400

200

0
15.3.31

16.3.31

16.6.30

Sony Financial Holdings Inc. All Rights Reserved

22

Attachment

Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)
Consolidated ordinary revenues
Consolidated ordinary profit<Consolidated>

9.2

9.3

FY15.1Q

FY16.1Q

Consolidated ordinary revenues

9.3

9.2

(0.1)

(1.3%)

Consolidated ordinary profit

1.8

0.7

(1.0)

(58.6%)

Profit attributable to owners of the parent

1.2

0.5

(0.7)

(59.5%)(Billions of yen)

(1.3%)

Change<Non-consolidated>
FY15.1Q

FY16.1Q

Ordinary revenues

8.6

8.4

(0.2)

(2.7%)

Gross operating profit

5.3

5.0

(0.3)

(6.5%)Net interest income

3.9

4.1

+0.1

+4.1%

Net fees and commissions

0.0

(0.1)

(0.1)

－
(23.2%)(Billions of yen)

(58.6%)

0.7

1.8
FY15.1Q

FY16.1Q(Billions of yen)＜Consolidated＞◆Ordinary revenues were essentially flat year on year. Interest
income on loans increased in line with a favorably growing
balance of mortgage loans, whereas interest income anddividends on securities decreased. Ordinary profit decreased
significantly year on year, due to an increase in operating
expenses, mainly in advertising expenses for card loanbusiness.

＜Non-consolidated＞◆ Both gross operating profit and net operating profit decreased
year on year.
・Net interest income increased due to an increase in interest
income on loans, although interest income and dividends on
securities decreased.
・Net fees and commissions decreased due mainly to higher
fees on guarantee commission.
・Net other operating income decreased due to lower gains on
foreign exchange transactions.

Change

1.3

1.0

(0.3)

General and administrative expenses

3.5

4.2

+0.7

+20.6%Net operating profit

1.8

0.7

(1.0)

(58.7%)

Ordinary profit

1.8

0.7

(1.1)

(61.5%)Net income

1.2

0.4

(0.7)

(60.7%)

16.3.31

16.6.30

77.4

75.6

(1.7)

(2.3%)

3.3

3.1

(0.2)

(6.7%)

2,126.5

2,107.1(19.4)(0.9%)Net other operating income(Billions of yen)

Net assets
Net unrealized gains onother securities, net of taxes

Total assets

Change from
16.3.31Sony Financial Holdings Inc. All Rights Reserved

23

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)<Reasons for changes>
15.6.30

16.3.31

16.6.30

Change from
16.3.31

Customer assets

2,001.1

2,034.4

2,013.6(20.8)(1.0%)

Deposits

1,872.2

1,923.5

1,908.1(15.3)(0.8%)

Yen

1,558.9

1,587.9

1,580.6(7.3)(0.5%)

313.3

335.5

327.4

(8.0)

(2.4%)

Investment trusts

128.9

110.9

105.4

(5.4)

(4.9%)

Loans outstanding

1,226.0

1,344.1

1,395.6

+51.4

+3.8%

Mortgage loans

1,111.2

1,237.1

1,289.3

+52.2

+4.2%

5.0

10.5

13.2

+2.6

+25.5%

109.7

96.5

*1

93.0

(3.4)

(3.6%)

10.56%

9.90%

9.90%

(Billions of yen)

Foreign currency

Card loans
OthersCapital adequacy ratio*2(domestic criteria)±0.00pt◆ Yen deposit balance slightly decreased
due to a decrease in yen time deposit
balance partially offset by an increasein yen ordinary deposit balance.
◆ Yen-denominated balance of foreign
currency deposit decreased due to yen
appreciation despite higher foreign
currency purchases.
◆ Loan balance expanded reflecting
higher demand of refinancing
mortgage loans.

◆ The balance of new card loans
launched in July 2015, steadily
expanded .

*1 Loans in others include corporate loans of ¥93.0 billion*2 Please refer to the page 27 for the graph of the non-consolidated capital adequacy ratio (domestic criteria)Sony Financial Holdings Inc. All Rights Reserved24

Attachment

Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis(Billions of yen)

<Reference> Interest Spread(Managerial Accounting Basis)

FY15.1Q

FY16.1Q

5.3

5.0

(0.3)

(6.5%)

Gross operating profit
Net interest income*1 ①

Change

4.5

4.7

+0.2

+5.2%

*2

Net fees and commissions ②

0.2

(0.0)

(0.3)

－

Net other operating income*3

0.5

0.2

(0.2)

(46.4%)

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

4.8

4.7

(0.0)

(1.9%)

Operating expenses and otherexpenses

3.5

4.2

+0.7

+20.2%

1.2

0.4

(0.8)

(64.4%)③

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

Yield on financing

Yield on investment
Interest spread
(%)

1.5
1.19

1.17
1

0.89

+0.03pt

0.92

0.5■Managerial accounting basis

0.27

0.27

FY15.1Q

FY16.1Q

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.

0*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 consists ofprofits and losses for bond and derivative dealing transactions.

Note: Interest spread=(Yield on investment)-(Yield on financing)■Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

Sony Financial Holdings Inc. All Rights Reserved

25

Operating Performance:
Sony Bank (Non-consolidated) (1)Loans

Deposits
Yen deposits

Foreign currency deposits

Mortgage loans(Billions of yen)

2,000

Others(Billions of yen)

1,878.2
327.2

1,908.1

1,923.5
335.5(15.3)

1,395.6

1,500

1,344.1

106.2

327.4

1,187.1

107.0

+51.4

*Corporate loansof ¥93.0 billion.
Card loans of ¥13.2
billion.

112.8

1,500
1,000

1,289.3

1,000

1,074.3
1,551.0

1,587.9

1,237.1

1,580.6

500

500

0

0
15.3.31

16.3.31

16.6.30

15.3.31Sony Financial Holdings Inc. All Rights Reserved

16.3.31

16.6.30

26

Attachment

Operating Performance:
Sony Bank (Non-consolidated) (2)Non-Consolidated Capital Adequacy Ratio

Balance of Securities by Credit Rating
AAA
BBB

AA
A
Others(%)

15(Billions of yen)

800

(Domestic Criteria)

730.0
10.66

620.9

583.2

600

9.90

±0.00pt

9.90

10(37.7)

400

5
200

0

0
15.3.31

16.3.31

16.6.30

15.3.31

16.3.31

16.6.30*Calculated based on the standard FSA Notification No. 19 (2006), which establishes
standards based on Article 14-2 of the Banking Act of Japan for determining thecapital adequacy of a bank in light of the assets held by the bank.

Sony Financial Holdings Inc. All Rights Reserved27

Attachment

Forecast of Consolidated Financial Results
for the Year Ending
g March 31,, 2017 (FY16)()

Sony Financial Holdings Inc. All Rights Reserved

28

Forecast of Consolidated Financial Results for FY16
Forecast of consolidated financial results for FY16 is unchanged from the forecast announced on April 28, 2016
(Billions of yen)
Consolidated ordinary revenues

FY15(Actual)FY16(Forecast)

1,362.0

1,450.0

ChangeFY16.1Q(3M Actual)

Progress rate

+6.5%

326.6

22.5%
22.3%
25.6%

1,230.2

1,309.8

+6.5%

292.0

Non-life insurance business

96.9

101.6

+4.8%

26.0

Banking business

37.9

37.9

(0.1%)

9.2

24.4%

Consolidated ordinary profit

71.1

71.0

((0.1%))

25.5

35.9%

Life insurance business

60.2

62.5

+3.8%

22.0

35.2%

Non-life insurance business

4.6

4.4

(6.0%)

2.8

65.1%

Banking business

5.9

4.5

(24.9%)

0.7

17.2%

43.3

46.0

+6.1%

17 6
17.6

38 4%
38.4%

Life insurance businessProfit attributable to owners of the parent<Segment information for ordinary revenues and ordinary profit>■Life insurance business
In FY16.1Q, ordinary revenues were below our initial expectations because of a decline in insurance premium revenues, but
ordinary profit exceeded our initial expectations. This situation was due to valuation gains on hedges on securities, lower insurance claim
payments and a decrease in the provision of policy reserves for minimum guarantees for variable life insurance owing to the acquisition of
new policies.
We maintain our forecast for the full year, taking into consideration such factors as the market environment from the second quarter
onward and trends in insurance claim payments.
■Non-life insurance business
Ordinary revenues were essentially in line with our expectations in FY16.1Q. Ordinary profit outpaced our initial expectations, due
to factors including higher gains on sale of securities. We maintain our forecast for the full year.
■Banking business
The introduction of negative interest rates affected earnings in FY16.1Q. Also, we incurred up-front investment expenses to enact
measures aimed at expanding the customer base over the medium term.
term Taking into account our progress on this front,
front performance was
essentially in line with expectations, and we maintain our forecast for the full year.

Sony Financial Holdings Inc. All Rights Reserved29

Attachment

Sony Life’s MCEV and ESR
as of June 30,
30 2016

Please keep in mind that the validity of these calculations of MCEV as of March 31, 2016 (after restated) and as of June 30, 2016 has notbeen verified by outside specialists. A part of the calculations of MCEV as of June 30, 2016 adopted simplified method.

*In this part, figures, ratios and percentages changes have been rounded.

Sony Financial Holdings Inc. All Rights Reserved30Sony Life Adopts UFR for MCEV and ESR
Taking the points described below into consideration, from FY16, Sony Life has changed tothe method of using ultimate forward rates (UFR) as its extrapolation method for ultralongterm interest rates to obtain the risk-free rate used in calculating MCEV and ESR.
When evaluating ESR, which indicates capital sufficiency, we consider it appropriate toreflect the status of deliberations on international capital regulations. However, as noevaluation method is established at present
present, taking market consistency into account wehave set the start of extrapolation beyond the 40th year.
We judge it desirable at present to maintain consistency with MCEV and ESR, an important
indicator for the company. We have taken into consideration the compliance with MCEV
Principles (ensuring consistency in asset and liability valuations by using reliable market
data to determine interest rates up to the 40th year) and such factors as the disclosure
status of European and Japanese life insurers
insurers.
Note: For interest rates up to the 40th year, we use rates on Japanese government bonds, which can be obtained in themarket. For interest rates beyond the 40th year, we employ the Smith-Wilson method (in the past we conductedpusing
g a fixed 40th-yearyforward rate)) for extrapolationpso that the 60-yearyforward rate will converge
g on
extrapolation
the UFR (3.5%). As a result, whereas the 40-year interest rate as of March 31, 2016, is 0.63%, based on market
data, and 60- and 80-year rates are 1.23% and 1.47%, for which market data is not available. Please refer to theappendix page 51 for details.

In line with this change, we disclose revalued key indicators as of March 31, 2016.
Sony Financial Holdings Inc. All Rights Reserved31

Attachment

Sony Life’s MCEV as March 31, 2016 (after restated)(Billions of yen)

16.3.31(before restated)

MCEV

16.3.31(after restated)

1 063 7
1,063.7

1 330 1
1,330.1

Adjusted net worth

2,074.4

2,074.4

Value of existing business(1,010.7)(744.4)((Billions of yyen))

FY15.4Q (3M)((before restated))

FY15.4Q (3M)((afterrestated))

New business value

(1.7)

3.9

New business margin(0.5%)

1.2%*Please refer to the appendix page 47 for details of adjusted net worth and value of existing business .

Sony Financial Holdings Inc. All Rights Reserved

32Sony Life’s ESR as of March 31, 2016 (after restated)(after tax)
(Billions of yen)

16.3.31(before restated)

16.3.31(after restated)

1,097.6

989.3

256.3

324.2

183.6

255.2

Operational risk

31.4

31.4

Counter party risk

2.0

2.0

Variance effect((368.1))((374.4))

The risk amount based on economic value

1,019.2

972.4

Insurance risk*
Market-related risk
Of which, interest rate risk**(* ) Risk amount excluding the variance effect within Life module and Health module.
(**) Risk amount excluding the variance effect within market-related risk.

(Billions of yen)

16.3.31(before restated)

MCEV + Frictional
F i til costs***
t ***
ESR

16.3.31(after restated)

1 063 7
1,063.7

1 366 5
1,366.5

104%

141%

(*** ) The amount as of March 31, 2016 (before restated) is only for MCEV.

Sony Financial Holdings Inc. All Rights Reserved33

Attachment

Sony Life’s Interest Rate Sensitivities
as of March 31, 2016 (after restated)<Sensitivities of MCEV>
Assumption(Billions of yen)

Change in assumption

Base

Change inamountMCEV

No Change

Rate ofchange－1,330.1－（億円）

50bp decrease

1 170 4
1,170.4(159 7)(159.7)(12%)

50bp increase

1,398.7

68.6

5%Interest rates<Sensitivities of new business value>
Assumption(Billions of yen)

New business
value

Change inamount

No Change

3.9

－

－

50bp decrease(7.7)(11.5)(298%)

50b iincrease
50bp

12.4

8.5

221%

Change in assumption

BaseInterest rates

Rate ofchangeNotes:
1. For interest rate sensitivity, we have shifted the yield curve by 50bp up to the year in which extrapolation commenced and extrapolated
g the same UFR.
using
2. Regarding sensitivity to MCEV, the adoption of UFR does not affect on the changes in adjusted net worth.
3. The definition of new business for interest rate sensitivity is that for FY15.4Q (3M).
Please be aware that the definition of new business differs from MCEV full report disclosed on May 23, 2016.

Sony Financial Holdings Inc. All Rights Reserved

34Sony Life’s MCEV as of June 30, 2016
(Billions of yen)

16.3.31

MCEV

16.6.30

Change1,330.1

1,076.4(253.7)

Adjusted net worth

2,074.4

2,671.8

597.4

Value of existing business(744.4)(1,595.5)(851.1)(Billions of yen)

FY15.4Q
FY15
4Q
(3M)

FY16.1Q
FY16
1Q
(3M)

New business value

3.9

(0.2)

New business margin

1.2%(0.0%)

Notes:
1. Calculated MCEV as of June 30, 2016 by using updated economic assumptions and lapse and surrender rate from March 31, 2016.
2. New business value for FY16.1Q is calculated accumulating new business value for each month based on economic assumptions at the end of each month.
NNewbbusinessivalue
l ffor FY15
FY15.4Q
4Q iis calculated
l l t d accumulating
l ti new b
businessivalue
l ffor eachh quartert b
based
d on economici assumptionsti
att theth endd off eachh quarter.
t Reasons for changes in MCEV
・MCEV as of June 30, 2016 decreased ¥253.7 billion from March 31, 2016 due to a significant decline in interest rates inJapanese yen.
 New business value / new business margin
・From FY16, Sony Life has changed to the calculation method of new business value and new business margin. The method
has been changed to one of accumulating new business value from at the end of each quarter to the end of each month.
・For
For FY16.1Q(3M), the new business value was negative ¥0.2 billion, and the new business margin was negative 0.0%, down
1.2pt from FY15.4Q(3M).
*Please refer to the appendix page 50 for trend on JGB yield.

Sony Financial Holdings Inc. All Rights Reserved35

Attachment

Sony Life’s ESR as of June 30, 2016
(after tax)
(Billions of yen)

16.3.31

16.6.30

Insurance risk*

989.3

1,227.6,

Market-related risk

324.2

295.0

255.2

218.0

O
Operationaltil risk
i k

31 4
31.4

31 5
31.5

Counter party risk

2.0

2.2

Variance effect(374.4)(414.5)

The risk amount based on economic value

972.4

1,141.8

Of which, interest rate risk**(* ) Risk amount excluding the variance effect within Life module and Health module.
(**) Risk amount excluding the variance effect within market-related risk.
(Billions of yen)

MCEV + Frictional costs
ESR

16.3.31

16.6.30

1,366.5

1,085.5

141%

95%

Notes:
1.The risk amount based on economic value refers to the total amount of Sony Life’s risks comprehensively
examined by a market consistent approach, including insurance risk and market-related risk.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on theinternal model, which is a similar but modified model based on the EU Solvency II standard method.
3. ESR=MCEV + Frictional costs / Risk amount based on economic value.

Sony Financial Holdings Inc. All Rights Reserved

36

Responses to an Environment of Ultralow Interest Rates and
Our Perspective on Soundness<Responses to an Environment of Ultralow Interest Rates>Product and sales strategies:•
We discontinued sales of some savingsaving-type
type products in May 2016.
•
In October 2016, we plan to revise insurance premium rates on such products as
variable life insurance (whole life type), limited payment whole life insurance, living
benefit whole life insurance (living standard type) and living benefit insurance (whole lifetype), and discontinue sales of interest rate
rate-sensitive
sensitive whole life insurance.
•
We will reinforce our ability to offer U.S. dollar-denominated insurance and term life
insurance.

Asset management policy:•
Based on an ALM perspective, we will continue to invest in assets that match our liability
characteristics, while at the same time working to diversify our investment methods.
•
We will expand our investment in ultralong-term FILP bonds and corporate bonds.
g continuing
g to invest in ultralong-termgbonds,, we will not invest in productspwith•
Althoughnegative interest rates.

<Our Perspective on Soundness>


ESR fell below 100% as of June 30, 2016, but the figure had recovered to around 110%* as ofJuly 31, 2016. As described above, we are working to revise our products and reinforce oursales capabilities. We believe that current ESR levels will recover due to the accumulation of
new business value from the second half of FY16. Accordingly, at present we do not believe an
increase in capital is necessary.
*ESR as of July 31, 2016 is calculated by using updated interest rates as of June 30, 2016, based on ESR as of June 30, 2016.

Sony Financial Holdings Inc. All Rights Reserved37

Attachment

AppendixSony Financial Holdings Inc. All Rights Reserved

38

Recent Topics 1
AEGON Sony Life Insurance
Launch of sales: December 1, 2009
Common stock: ¥14 billion
Equityy ownership: Sonyy Life insurance Co Ltd 50%, AEGON international B.V. 50%
Marketing products: Individual Variable Annuities
Sales Channels: Lifeplanner sales employees and partner Banks (26*) *As of Aug. 10, 2016

SA Reinsurance Ltd
Established： October 29
29, 2009
Common stock: ¥13.4 billion
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Business： Reinsurance business*AEGONAEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50
50-50
50 joint ventures established by Sony Life and AEGON Group.

Sony Bank’s Mortgage Loans through Sony Life
■Sonyy Life accounts for 20% of the balance of mortgage
g g loans as of Jun. 30, 2016
Sony Life accounts for 17% of the amount of new mortgage loans for FY16.1Q*Sony Life started handling banking agency business in January 2008.

S
Sony
Assurance’s
A
’ A
Auto
t Insurance
I
Sold
S ld bby S
Sony Lif
Life■Sony Life accounts for approx. 4% of new automobile policies for FY16.1Q*Sony Life started handling automobile insurance in May 2001.

Sony Financial Holdings Inc. All Rights Reserved39

Attachment

Recent Topics 2<Highlights on and after FY16.1Q>

2016-04-01

Sony Life opened its new sales office in Akita and Yamaguchi prefecture

2016-04-01

Sony Lifecare Group opened its first newly built nursing care home “SONARE Soshigaya-Okura” in Tokyo

2016-04-07
2016
04 07

Sony Bank began offering “SonySony Bank WALLET App.”App. for smart
smart-phone
phone users

2016-05-02
2016-05-12
2016
05 12

Sony Life commenced sale of a new product: “Level Premium Plan Term Life Insurance with Reduced
Surrender Value (Disability/Nursing Care Type)” and “Level Premium Plan Term Life Insurance with No
Surrender Value (Disability/Nursing Care Type)”
Sony Lifecare Group announced an opening of the second SONARE newly built nursing care home in
S it
Saitamaprefecturef tini Spring
S i 2017

2016-05-18

Sony Life closed a representative office in Taipei

2016-05-19

Sony Life announced to begin new services for corporate policyholders to support their health, management
and employee welfare

2016-06-23

SFH changed its President, Representative Director

2016-07-01

Sony Life opened a representative office in Singapore

2016 07 04
2016-07-04

SFH anddS
Sony Lif
Life relocatedlt d ththeiri hheadquartersdt
tto ChiChiyoda-ku,
d k Tokyo
T kSony Financial Holdings Inc. All Rights Reserved

40Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)

Notes:
1. The above table includes monetary trusts other than trading-purpose securities.
2. Derivative financial products such as principal protected 30 year notes with Nikkei 225 index-linked coupons are included in the “Held-to-maturity-securities” above.
Principal protected 30 year notes with Nikkei 225 index-linked coupons
As of Mar. 31, 2015; Carrying amount: ¥44.2 billion, Fair market value: ¥57.5 billion, Net unrealized gain (losses): ¥13.2 billion
As of Mar. 31, 2016; Carrying amount: None
As of Jun. 30,, 2016;; Carrying
y g amount: None

Valuation gains (losses) on trading-purpose securities(Billions of yen)

Note: The above chart includes trading-purpose securities included in “monetary trusts,” etc

Sony Financial Holdings Inc. All Rights Reserved

41

Attachment

Sony Life’s Interest Income and Dividends (Details)(Millions of yen)

FY15.1Q

FY16.1Q

ChangeCash and deposits
Japanese governmentand corporate bonds
Japanese stocks

00(94.1%)

27,811

29,862+ 7.4%

7962(20.4%)

Foreign securities

2,334

1,698

(27.2%)

Other securities

1,036

25

(97.6%)

Loans

1 512
1,512

1 572
1,572

+3
3.9%
9%

Real estate

2,570

2,703

+ 5.2%

18

23+ 25.7%35,36335,948+ 1.7%

Others
Total

Sony Financial Holdings Inc. All Rights Reserved

42Sony Life’s Quarterly Trend on New Policy Amount
Quarterly Trend on New Policy Amount(Billions of yen)

1 491 6
1,491.6

1,500

1,437.4
1,324.2

1,250

1,290.7

1,260.0

1,152.5

1,135.8

1,098.9

991.5

1,000
750
500
250
0
FY14 1Q
FY14.1Q

FY14 2Q
FY14.2Q

FY14 3Q
FY14.3Q

FY14 4Q
FY14.4Q

FY15 1Q
FY15.1Q

FY15 2Q
FY15.2Q

Sony Financial Holdings Inc. All Rights Reserved

FY15 3Q
FY15.3Q

FY15 4Q
FY15.4Q

FY16 1Q
FY16.1Q

43

Attachment

Sony Life’s Quarterly Trend on
Annualized Premiums from New Policies
Quarterly Trend on Annualized Premiums from New Policies
A
Annualized
li d premiumsiffrom new policies
li i

Of which, third-sector(Billions of yen)

25
22 7
22.7

22.3

21.8

20.6
20

18.9

20.5
19.1

18.5
17.2

15

10

5

5.1
3.7

4.6

3.5

3.9

3.4

FY14.4Q
Q

FY15.1Q
Q

FY15.2Q
Q

2.8

3.6

4.1

FY15.4Q
Q

FY16.1Q
Q

0
FY14.1Q
Q

FY14.2Q
Q

FY14.3Q
Q

FY15.3Q
Q

Sony Financial Holdings Inc. All Rights Reserved

44

Operating Performance : AEGON Sony Life Insurance*AEGON SonyS
Life
Lif InsuranceIsells
ll individual
i di id l variable
i bl annuities.
iti

Number and Amount of New Policies

Number and Amount of Policies in Force

New policy amount

Policy amount in force

Number of new polices [ ](Thousands ofpolicies)(Billions of yen)

50

600
500

8

30.5
[5.2]
30

22.3
[3.7]

22.4
[3.9]

20

(Thousands ofpolicies)(Billions of yen)

10

40

Number of policies in force [ ]

120

407.7
[66.6]

444.2
4442[73.4]

461.4[76.9]

100

400

80

300

60

200

40

100

20

6

4

10

2

0

0
FY14.1Q
FY15.1Q
FY16.1Q
Net income (losses) for AEGON Sony Life Insurance and SA Reinsurance(Billions of yen)

FY15.1Q

00
15.6.30

16.3.31

16.6.30

ChangeFY16.1Q

AEGON Sony Life Insurance

(0.2)

(0.9)

(0.6)

SA Reinsurance

(0 2)
(0.2)

(1 8)
(1.8)

(1 6)
(1.6)

AEGON Sony Life Insurance and SA Reinsurance are equity method companies, 50-50 joint venture established by Sony Life and AEGON Group.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP. 50% of the net income (losses) for AEGON Sony Life Insurance andSA Reinsurance are recognized as investment profit (losses) on equity method in the SFH’s consolidated net income.

Sony Financial Holdings Inc. All Rights Reserved45

Attachment

Sony Life’s Medium-term Target for MCEV (after restated)
In line with adopting UFR, Sony Life’s medium-term target for MCEV
has changed as follows.

FY15

FY18

MCEV (before restated)¥1 0 trillion¥1.0

ROEV4-5%Over ¥1.1¥1 1 trillion

MCEV (after restated)¥1.3 trillion

ROEV4-5%Over ¥1.4 trillion

 Medium-term targets toward FY18, Sony Life’s ROEV andConsolidated Adjusted ROE are 4~5%, unchanged from theamount on before restated.
restated

Notes:
1. Medium-term targets are calculated based on interest rates as of March 31, 2016.
2. For calculation of Sony Life’s ROEV and consolidated adjusted ROE, please refer to the page 51 on presentation material “SonyFinancial Group Corporate Strategy Meeting for Fiscal Year 2016” held on June 1, 2016.

Sony Financial Holdings Inc. All Rights Reserved

46

Sony Life’s MCEV related amounts as of March 31, 2016
(after restated)(Billions of yen)

Value of existing business16.3.31(before restated)

16.3.31(after restated)(1,010.7)(744.4)Present value of certainty-equivalent profit(393.1)(169.9)Time value of options and guarantees(127.6)(137.3)

Frictional costs(55.6)(36.4)

Cost of non-hedgeable risks(434.4)(400.7)(Billions of yen)

16.3.31(before restated)

16.3.31(after restated)

Adjusted net worth

2,074.4

2,074.4

Free surplus

100.1

394.0

1,974.3

1,680.4

Required capitalSony Financial Holdings Inc. All Rights Reserved

47

Attachment

Method of Measuring Risk Amount
Based on Economic Value (1) Market-related Risk*1

Interest rate risk
Fluctuations in net asset
value based on economic
value in response to theshocks in the right columns.
The same applies below.

Sony Life(Reference) EU Solvency II Implementing
Measures (Delegated Regulation)

P
Percentagetincreasesior decreasesddiffdiffer ffor eachhcurrency and term.
As for measuring interest rate risk in Japanese yen,introduced principal component analysis, where yield
curve changes are disaggregated into threecomponents parallel shiftcomponents,
shift, twist and butterfly
butterfly, and theyield curve is shocked by each component.

Diff
Differentt percentagetchangeshin
i interesti t
t ratest are
set for each term, from one year to 20 years.
For terms longer than 20 years and through 90
years, percentage changes are set using linear
interpolation, with negative 29% as the percentagechange for 20 years and negative 20% as thepercentage change for 90 years.

(Example)
For Yen 30-year, 33% decrease (parallel shift),
28% decrease (twist)(twist), 8% decrease (butterfly)
Global 39%, Others 49%*2

Equity risk

Listed equities 45%, Other securities 70%

Real estate risk

Actual real estate 25%

Same as on the left

Credit risk = (market value) x (risk coefficient for eachcredit rating) x duration

Credit risk = (market value) x (risk coefficient foreach credit rating and duration)

Credit risk

Note that durations have caps and floors, depending
on credit ratings.

Currency risk

(Example)
Rating A: Duration (Dur): 5-10 years((Example)p )Rating A: Risk coefficient (1.4%), cap (23), floor (1)Risk coefficient=7.0% + 0.7% x (Dur – 5 )35% downside fluctuation

25% downside fluctuationNotes
p items as of Jun. 30, 2016.
1. Principal
2. Symmetric adjustment (an adjustment of±10% of the average value of the stock price index during a defined period in the past) is applied.

Sony Financial Holdings Inc. All Rights Reserved

48

Method of Measuring Risk Amount
Based on Economic Value (2) Insurance Risk*1

Sony Life(Reference) EU Solvency II Implementing
Measures (Delegated Regulation)

Mortality risk

Mortality rate increases by 15% for each year elapsed Same as on the leftLongevity risk

Mortality rate decreases by 20% for each yearpelapsed

Lapse risk

The largest amount of these; *2

The largest amount of these;•Lapse rate increases by 50% for each year elapsed• Increases by 50% in the assumed rates ofSame as on the left

• Lapse rate decreases by 50% for each year elapsed

lapsation for Life module, 50% for Health module• 30% of policies on which surrender value is in•Decreases by 50%% in the assumed rates off

excess of best estimate liability are immediately
surrendered• 40% of policies (70% for group annuities, etc.) on

lapsation for Life module, 50% for Health module
which surrender value is in excess of best
estimate liability are immediately surrendered

Expense risk

Operating expenses increase by 10% for each year
elapsedRate of inflation rises by 1%

Same as on the left

Disability risk

Rate of occurrence increases by 35% in the first fiscal Rate of occurrence increases by 35% in the firstyear, rising by 25% for each year thereafter
fiscal year, rising by 25% for each year thereafter.
Recovery rate decreases by 20%.

Notes
1. Principal items as of Jun. 30, 2016.
2 At Sony Life,
2.
Life lapse risk is calculated by computing and adding together the largest amount of three options for each insurance policy

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Attachment

Trend on JGB Yields
JGB Yields (par rate)

As of the end of each monthSony Financial Holdings Inc. All Rights Reserved

50

Risk-free Rate as of March 31, 2016 (Japanese yen)
4 000%
4.000%
Par rate(after restated)

Par rate(before restated)

Forward rate
(after restated)

Forward rate
(before restated)

3.500%

3.000%<Before restated> <After restated>
2.500%

2.000%

40 year
50 year
60 year
70 year
80 year

0 63%
0.63%
0.70%
0.74%
0.77%
0.79%

0 63%
0.63%
0.98%
1.23%
1.38%
1.47%
Convergence
period: 20 year

1.500%

1.000%

0.500%

0.000%
5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80 (year)-0.500%Last liquid
liq id point
point: 40 year
ear
As for interest rates in U.S. dollar beyond the 30th year, we also use extrapolation in which the 60-year forward rate converges on the UFR (3.5%).

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Attachment

Trend on Risk-free Rate (Japanese yen and par rate)
4.000%The end of Jun. 2016

The end of Mar. 2016

3.500%

3.000%

2.500%

2.000%

Convergence
period: 20 year

1.500%

1.000%

0.500%

0.000%
5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80 (year)-0.500%Last liquid point: 40 year

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52

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

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