Consolidated Financial Summary (Japanese GAAP)
for the Three Months Ended June 30, 2020
August 11, 2020
Sony Financial Holdings Inc.
(URL: https://www.sonyfh.co.jp/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Representative:
Masashi Oka, President & CEO, Representative Director
Inquiries:
Hiroaki Kiyomiya, Managing Director & General Manager-Investor Relations Dept.
(Telephone: +81-3-5290-6500)(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the three months ended June 30, 2020
(1) Operating results
Ordinary Revenues
Millions of yen% change

Millions of yen% change

Millions of yen% change

540,626

30.7

20,461(36.3)

13,127(41.3)

413,654－

32,100－22,361－For the three months ended
June 30, 2020
For the three months ended
June 30, 2019
Note: Comprehensive income:

Profit Attributable to Owners of
the Parent

Ordinary Profit

For the three months ended June 30, 2020:¥

20,327 million:(20.4)%For the three months ended June 30, 2019:¥25,539 million:

62.2%

Net Income per
Share(Fully Diluted)

Net Income per
Share
For the three months ended
June 30, 2020
For the three months ended
June 30, 2019

Yen

Yen

30.18

30.17

51.40

51.39

Note: The year-on-year changes for the three months ended June 30, 2019 are not stated due to retroactive adjustment following a change in accounting policy.

(2) Financial condition
Total Assets
As of June 30, 2020
As of March 31, 2020
Note: Net assets attributable to shareholders:

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

15,687,783
15,125,710

681,867
691,978

4.3
4.6

As of June 30, 2020:¥ 679,309 million

As of March 31, 2020:¥ 689,512 million

2. Dividends
Dividend per Share

Record Date
For the year ended
March 31, 2020
For the year ending
March 31, 2021
For the year ending
March 31, 2021
(forecast)

1st QuarterYen

2nd Quarter
Yen

3rd Quarter
Yen

－

0.00

－

Year-End
Yen

Annual Total
Yen

－

70.00

70.00

－

－

－

－

Note: Sony Financial Holdings Inc. (“SFH”) resolved at the meeting of its Board of Directors held on May 19, 2020 not to declare a dividend for the fiscal year
ending March 2021 on the condition of the completion of the tender offer for the common shares and the stock acquisition rights of SFH conducted bySony Corporation (the “Tender Offer”). As stated in the “Announcement Regarding the Result of Tender Offer for Shares, Etc. in Sony Financial Holdings
Inc. by Sony Corporation, the Controlling Shareholder,” dated July 14, 2020, SFH will not declare a dividend for the fiscal year ending March 2021 due tothe completion of the Tender Offer on July 13, 2020.

3. Forecast of consolidated financial results for the year ending March 31, 2021
(Percentage figures represent changes from the results of the previous fiscal year.)
Profit Attributable to
Net Income per
Ordinary Revenues
Ordinary Profit
Owners of the Parent
Share
For the year ending
March 31, 2021

Millions of yen% change

Millions of yen% change

Millions of yen% changeYen

1,796,000

0.8

96,000(12.9)

63,000(14.0)

144.81

Note: Changes in forecast of financial results since the most recent public announcement: None

4. Notes(1) Changes in significant subsidiaries during the period (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: None(b) Changes in accounting policies due to other reasons: Yes(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of June 30, 2020:
435,087,405 shares
As of March 31, 2020:
435,087,405 shares(b) Number of treasury shares
As of June 30, 2020:
38,032 shares
As of March 31, 2020:
37,469 shares(c) Weighted-average number of shares
For the three months ended June 30, 2020:
435,049,750 shares
For the three months ended June 30, 2019:
435,025,558 shares
Status of interim audit proceduresThis document is exempt from interim audit procedures by certified public accountants or audit firm.

Content of Supplemental Materials
I. Consolidated Financial Statements
1. Consolidated Balance Sheets ……………………………………………………………………………

2

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

4(Consolidated Statements of Comprehensive Income) …………………………………..………………

7

3. Note on Going Concern………………...……………………...……………………...…………………

8

4. Material Changes in Stockholders’ Equity………………...……………………...……………………..

8

5. Changes in accounting policies …………………………...……………………………..………………

8

6. Segment Information ……………………………………...……………………………..………………

9

II. Attachment
Consolidated Financial Results for the Three Months Ended June 30, 2020 and Sony Life’s MCEV as
of June 30, 2020…………………………………………………………………………………………… 11* On August 11, 2020, Sony Financial Holdings Inc.’s (SFH’s) significant subsidiaries—Sony Life Insurance Co.,
Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank)—will announce theirfinancial results for the three months ended June 30, 2020. SFH has prepared an English-language summary of
those Japanese announcements made by the above subsidiaries, solely for the convenience of non-Japanesereaders.
Please see further details at our website: https://www.sonyfh.co.jp/en/financial_info/results/- 1 -I. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of June 30, 2020¥¥

AssetsCash and due from banks

549,964

559,700

Monetary claims purchased

6,006

5,293

Money held in trust

38,06739,194

Securities

11,909,172

12,371,221

Loans

2,187,792

2,271,492

Tangible fixed assets

109,372

109,709

Intangible fixed assets

54,59053,330Due from reinsurers

4,936

4,718

Foreign exchanges

3,019

11,250

Other assets

221,762

222,562

Net defined benefit asset

3,391

3,489

Deferred tax assets

39,21037,423

Reserve for possible loan losses(1,575)(1,602)

Total Assets

¥

- 2 -

15,125,710¥

15,687,783

(Millions of yen)
As of March 31, 2020

As of June 30, 2020¥¥

Liabilities
Policy reserves and others
Reserve for outstanding claims

10,731,488

11,005,711

81,23878,582

10,645,842

10,922,809

4,407

4,319

Due to agencies

2,471

1,675

Due to reinsurers

5,745

4,654

Policy reserves
Reserve for policyholders’ dividends

Deposits

2,440,783

2,558,346

Call money and bills sold

151,256

196,241

Borrowed money

241,826

286,530

Foreign exchanges

684

517

Bonds payable

20,00020,000

Other liabilities

747,676

841,642

Reserve for employees’ bonuses

4,297

2,048

Net defined benefit liability

34,17034,230Reserve under the special laws

53,06053,749Reserve for price fluctuations

53,06053,749Deferred tax liabilities

160

459

Deferred tax liabilities on land revaluation

109

109

14,433,732

15,005,916

Common stock

19,99419,994

Capital surplus

191,224

191,224

Retained earnings

365,869

348,544

(55)

(56)

577,033

559,706

116,126

123,021

Total Liabilities
Net Assets

Treasury stock
Total shareholders’ equity
Net unrealized gains (losses) on available-for-sale securities, net oftaxes
Net deferred gains (losses) on hedging instruments, net of taxes
Land revaluation, net of taxes
Remeasurements of defined benefit plans, net of taxes
Total accumulated other comprehensive income

(373)

(241)

(2,439)(2,439)

(835)

(737)

112,478

119,602

Subscription rights to shares

215

231

Non-controlling interests

2,250

2,326

691,978

681,867

Total Net Assets
Total Liabilities and Net Assets

¥

- 3 -

15,125,710¥

15,687,783

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

Ordinary Revenues
Ordinary Revenues from the Life Insurance Business

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020¥¥

413,654

540,626

368,150

491,118

300,901

273,328

300,348

269,742

64,357

211,721(Interest income and dividends)

43,50147,744(Income from money held in trusts, net)

1,127

111

7

41

(Gains on sale of securities)

1,238

－

(Gains on separate accounts, net)

18,480163,823

2,891

6,068

31,86535,362

31,23235,042

Income from insurance premiums(Insurance premiums)
Investment income(Gains on trading securities, net)

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)

30,41832,868(Interest and dividends on deposits of premiums)

19

19(Reversal for reserve for outstanding losses and claims)

795

2,154

628

305

(Interest income and dividends)

336

325

(Gains on sale of securities)

311－(Transfer to interest and dividends on deposits of premiums)

(19)

(19)

4

14

11,856

12,114

8,399

7,925

(Interest income on loans)

4,519

4,920

(Interest income and dividends on securities)

3,861

2,986

Fees and commissions

2,525

3,291

Other operating income

879

768

Other ordinary income

51

129

1,782

2,030

Investment income

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

Other
Other ordinary income

1,782

2,030
(Continued)- 4 -(Millions of yen)

Ordinary Expenses
Ordinary Expenses from the Life Insurance Business

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020¥¥

381,553

520,165

342,796

480,350

109,439

117,362(Insurance claims)

23,32029,858(Annuity payments)

3,318

3,947

(Insurance benefits)

26,63931,013(Surrender payments)

52,97846,682

950963

168,995

271,755

Insurance claims and other payments(Other payments)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends
Investment expenses(Interest expenses)

444－

168,550

271,755

00

16,712

38,592

748

470(Losses on derivatives, net)

1,579

30,419(Foreign exchange losses, net)

13,334

6,283

Operating expenses

37,346

41,547

Other ordinary expenses

10,302

11,092

Ordinary Expenses from the Non-life Insurance Business

27,75728,035

Underwriting expenses

20,78520,557(Net losses paid)

14,18312,750(Loss adjustment expenses)

2,088

2,206

(Net commission and brokerage fees)

342

388

(Provision for underwriting reserves)

4,170

5,211

6,971

7,474

0

3

8,919

9,379

2,413

1,679

1,965

1,207

1,630

2,091

0

107

4,871

5,370

3

132

2,080

2,398

2,080

2,398

32,10020,461

Operating, general and administrative expenses
Other ordinary expenses
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(Continued)- 5 -(Millions of yen)

Extraordinary Losses

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020

¥

¥

658

749

Losses on disposal of fixed assets

42

26

Impairment losses

1

33

Provision for reserve under the special laws

614

688

Provision for reserve for price fluctuations

614

688

Provision (Reversal) for Reserve for Policyholders’ Dividends

102

100

Income Before Income Taxes

31,33919,611

Income Taxes - Current

10,311

7,405

Income Taxes - Deferred(1,412)(998)

Total Income Taxes

8,899

6,407

Profit22,44013,203

78

75

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

¥

- 6 -

22,361¥

13,127

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

Profit

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020¥¥

22,44013,203

Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities, netof taxes

2,897

6,894

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

(57)

131

Remeasurements of defined benefit plans, net of taxes

139

97

Share of other comprehensive income of affiliates accounted forusing equity method

120

－

3,099

7,124

Total other comprehensive income
Comprehensive income¥

25,539¥20,327(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 7 -25,46020,2517976

3. Note on Going Concern
Not applicable.

4. Material Changes in Stockholders’ Equity
Not applicable.

5. Changes in accounting policies(Valuation of available-for-sale securities)
The Sony Financial Group has previously reported foreign currency translation differences on foreign
currency-denominated debt securities, within available-for-sale securities in other comprehensive income.
From the beginning of the three months ended June 30, 2020, Sony Life Insurance Co., Ltd. (Sony Life)changed its accounting policy, so that foreign currency translation differences related to changes in fair values
in original currencies are recognized into net assets as net unrealized gains and losses on available-for-salesecurities, net of taxes, while the remaining changes are recognized in foreign exchange gains and losses.
Sony Life changed its ALM operation policies from the viewpoint of liquidity risk management, andincreased the weight of foreign currency denominated available-for-sale bonds within the holdings of
securities due to the increase in sales of foreign currency denominated insurance contracts. Accordingly, Sony
Life changed its accounting policy in order to mitigate mismatches in profit or loss arising from differences inaccounting method for foreign currency translation between assets and liabilities, and to reflect the hedge
effect more appropriately in financial statements. The change in accounting policy has been applied
retroactively, and the amounts in the previous fiscal year were adjusted.
Compared to financial statements stated before, ordinary profit and income before income taxes decreasedby ¥2,295 million, and income attributable to owners of the parent decreased by ¥1,652 million for the threemonths ended June 30, 2019. In addition, retained earnings at the beginning of the previous fiscal year
decreased by ¥87 million, and net unrealized gains (losses) on available-for-sale securities, net of taxes
increased by ¥87 million, reflecting the cumulative impact on net assets at the beginning of the previous
consolidated fiscal year.

- 8 -6. Segment Information(1) Segment information by reportable segment
For the three months ended June 30, 2019
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥¥

368,150692
368,842
26,025¥¥31,865031,865
3,892

Bankingbusiness

¥

¥

Total

11,85675
11,931
2,438

¥

Other

411,872768
412,640
32,355

¥

¥

¥

1,782
－
1,782
(298)

Total

¥

¥

413,654768
414,42232,057(Note) “Other” consists of the nursing care business and venture capital operations, which is not a reportable segment.
For the three months ended June 30, 2020
Millions of yen
Non-life
insurancebusiness

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥¥

491,118636
491,754
11,350¥¥35,362035,363
7,093

Bankingbusiness

¥

¥

Total

12,11479
12,194
2,302

¥

Other

538,595
716
539,312
20,745

¥

¥

¥

2,030
－
2,030
(368)

Total

¥

¥

540,626716
541,342
20,376(Note) “Other” consists of the nursing care business and venture capital operations, which is not a reportable segment.
(2) Reconciliations of the totals of reportable segments’ profit to quarterly consolidated statement of income
Millions of yen

Totals of reportable segments

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020

¥

¥

Other

statement of income

20,745(368)

43

Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated

32,355(298)¥

32,10084¥

20,461(3) Changes in reporting segments(Changes in accounting policies)
From the beginning of the three months ended June 30, 2020, the Sony Financial Group has changed the method of handlinggains or losses on translation of foreign currency-denominated debt securities, within available-for-sale securities, to more
appropriately reflect the effect of hedging exchange risks. Formerly, these gains or losses were fully recognized into net
assets as net unrealized gains or losses on available-for-sale securities, net of taxes. Under the revised method, exchange rate
differences related to changes in market value due to foreign currencies are recognized in net unrealized gains or losses onavailable-for-sale securities, net of taxes, and other differences are recognized in foreign exchange gains or losses. As a result,segment profit of the life insurance business segment decreased by ¥2,295 million for the three months ended June 30, 2019.
(4) Information on impairment loss on fixed assets and goodwill by reportable segment
Not applicable.

- 9 -SFH’s consolidated results are prepared in accordance with Japanese GAAP. As such, these figures differ in significant respects
from the financial information reported by Sony Corporation, SFH’s parent company, which prepares its financial statements inaccordance with U.S. GAAP.
SFH’s scope of consolidation includes following companies.
Consolidated subsidiaries:
Sony Financial Holdings Inc.
Sony Life Insurance Co., Ltd.
Sony Life With Insurance Co.,Ltd.*SA Reinsurance Ltd.*Sony Assurance Inc.
Sony Bank Inc.
Sony Payment Services Inc.
SmartLink Network Hong Kong Limited.
SmartLink Network Europe B.V.*
Sony Lifecare Inc.
Lifecare Design Inc.
Proud Life Inc.
Sony Financial Ventures Inc.
SFV・GB L.P.
* SmartLink Network Europe B.V. was included in the scope of consolidation from the second quarter ended September 30,
2019, and Sony Life With Insurance Co.,Ltd. (former AEGON Sony Life Insurance Co., Ltd.)and SA Reinsurance Ltd. were
included in the scope of consolidation from the fourth quarter ended March 31, 2020, respectively.

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

- 10 -

II. Attachment
Content of Presentation Material
Consolidated Financial Results for the Three Months Ended June 30, 2020 andSony Life’s MCEV as of June 30, 2020
・ Consolidated Operating Results for the Three Months Ended June 30, 2020 ………………………………

3

・ Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2021 …………………

17

・ Sony Life’s MCEV as of June 30, 2020 ……………………………………………………………………

19

・ Sony Corporation Making SFH its Wholly-Owned Subsidiary……………………………………………

22

・ Appendix ……………………………………………………………………………………………………

24- 11 -

【Presentation Material】

Consolidated Financial Results
for the Three Months
Ended June 30, 2020
andSony Lifeʼs MCEV
as of June 30, 2020

Sony Financial Holdings Inc.
August 11, 2020

AGENDA
Consolidated Operating Results for the Three Months Ended June 30, 2020
(FY20.1Q)
Forecast of Consolidated Financial Results for the Fiscal Year Ending
March 31, 2021 (FY2020)

P. 3
P. 17

Sony Lifeʼs MCEV as of June 30, 2020

P. 19

Sony Corporation Making SFH its Wholly-Owned SubsidiaryP. 22

Appendix

P. 24

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group.
Any statements contained herein that are not historical facts are forward-looking statements or pro forma information. Forward-looking
statements may include̶but are not limited to̶words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “assume,” “forecast,”“predict,” “propose,” “intend” and “possibility” that describe future operating activities, business performance, events or conditions. Forwardlooking statements, whether spoken or written, may also be included in other materials released to the public. These forward-looking
statements and pro forma information are based on assumptions, decisions and judgments made by the management of Sony Financial Group
companies, and are based on information that is currently available to them. As such, they are subject to various risks and uncertainties, andactual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors
are cautioned not to place undue reliance on forward-looking statements. Sony Financial Group companies are under no obligation to revise
forward-looking statements or pro forma information in light of new information, future events or other findings. The information contained inthis presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or
subscribe to any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever in Japan or abroad.
(Note 1) 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.
(Note 2) “Lifeplanner” is a registered trademark of Sony Life.
(Note 3) From FY20.1Q, we have changed the method of handling gains (losses) on translation of foreign currency-denominated debt securities, within available-for-salesecurities, to more appropriately reflect the effect of hedging exchange risks. Formerly, these gains (losses) were fully recognized into net assets as net unrealized
gains (losses) on available-for-sale securities, net of taxes. Under the revised method, exchange rate differences related to changes in market value due toforeign currencies are recognized in net unrealized gains (losses) on available-for-sale securities, net of taxes, and other differences are recognized in foreignexchange gains (losses). This change in accounting method has been retroactively applied to FY2019.
Copyright © Sony Financial Holdings Inc. All rights reserved.

2

Consolidated Operating Results
for the Three Months Ended
June 30, 2020
(FY20.1Q)

Highlights of Consolidated Financial Results◆ Ordinary Revenues︓Increased 30.7% year on year, to ¥540.6 billion, owing to increases
in ordinary revenues from all the businesses: life insurance, non-life
insurance and banking businesses.
◆ Ordinary Profit︓Decreased 36.3% year on year, to ¥20.4 billion, as the ordinary profit
from the non-life insurance business increased while ordinary profit fromthe life insurance and the banking businesses decreased.
Ordinary Profit

Ordinary Revenues

5,000
4,000

＋30.7%

540.6

32.1
300

413.6

(36.3%)

20.4

200

3,000
2,000

100

1,000

(JPY bn)(JPY bn)00

FY19.1Q

FY20.1Q

FY19.1Q

FY20.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

4

Highlights of Operating Performance : Sony Life (Non-consolidated)◆ Ordinary Revenues︓Grew 27.8% year on year, to ¥471.3 billion, due to steadyinvestment performance in the separate account.
◆ Ordinary Profit︓Decreased 48.5% year on year, to ¥13.5 billion, due mainly toa deterioration in gains (losses) related to market fluctuations forvariable life insurance* and the posting of countermeasure costs
associated with the COVID-19 pandemic.

*The total of (a) the provision of policy reserves for minimum guarantees for variable life insurance according to market
fluctuations and (b) net gains (losses) on derivative transactions to hedge market risks for the products.

Ordinary Profit

Ordinary Revenues

368.8+27.8%

471.3
300

26.3
(48.5%)

200

13.5
100
(JPY bn)(JPY bn)

FY19.1Q

0

FY20.1Q

FY19.1Q

FY20.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

5

Operating Performance : Sony Life (Non-consolidated) (1)◆ New Policy Amount and Annualized Premiums from New Policies︓
Both decreased year on year, owing to our restraint of sales activities associated with
the COVID-19 pandemic.
Annualized Premiums from New Policies

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

142

240

149

220
(52.4%)

200
180

1.67

18.7

17.5

160

71

1.21
(45.9%)

0.66(43.6%)

140
120

9.8

100
80
60
40
20 bn)(JPY(JPY tn)

3.3

3.1

FY18.1Q

FY19.1Q

0

FY18.1Q

FY19.1Q

FY20.1Q(48.3％)

1.6
FY20.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

6

Operating Performance : Sony Life (Non-consolidated) (2)

7.91
49.8

8.16

+0.1%

81.6

(0.2%)

51.4

51.4

920.7

922.7

893.2

(0.1%)

198.6

201.3

Jun. 19

Mar. 20

+0.0%

201.3

(JPY bn)(JPY tn)

Jun. 19

Mar. 20

Jun. 20

Jun. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

7

Operating Performance : Sony Life (Non-consolidated) (3)Lapse and Surrender Rate*（Individual life insurance + Individual annuities）
Annual

1Q

6.06
4.46

1.90
1.16

(0.37pt)

0.79

（%）

FY2018FY2019FY2020*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

Copyright © Sony Financial Holdings Inc. All rights reserved.

8

Operating Performance : Sony Life (Non-consolidated) (4)◆ Core Profit︓Increased due to a decrease in provision of policy reserve for minimum
guarantees for variable life insurance despite the posting of countermeasurecosts associated with the CONVID-19 pandemic.
Core Profit and Adjusted Core Profit
Core profit

400+24.5%

26.7
23.3◆ Details of core profit

Adjusted core profit

29.8

27.2

37.1

(27.0%)

19.8(JPY bn)

FY18.1Q

Positive spread

FY19.1Q

FY20.1Q

4.2

4.7

5.2

Provision of policy reserve
for minimum guarantees forvariable life insurance*¹

(0.8)

(2.0)

12.0

Adjusted core profit*²

23.3

27.2

19.8

*¹ Provision of policy reserves for minimum guarantees for variable life insurance is
described as negative amount.
*² Adjusted core profit = (Core profit) – (Positive spread) – (Provision of policy reserves
for minimum guarantees for variable life insurance)(JPY bn)0

FY18.1Q

FY19.1Q

FY20.1Q

9

Copyright © Sony Financial Holdings Inc. All rights reserved.

Operating Performance : Sony Life (Non-consolidated) (5)◆ Ordinary Profit：Decreased due to a deterioration in gains (losses) on hedges ofvariable life insurance despite an increase in core profit.
Core Profit and Ordinary Profit◆ Difference from core profit
FY18.1Q

FY19.1Q

FY20.1Q

Core profit

26.7

29.8

37.1

Capital gains (losses)*¹

2.6

0.2

(0.9)

Gains (losses) on hedges ofvariable life insurance*²

(3.9)

(1.4)

(20.7)

Provision of contingency
reserves*³

(2.1)

(2.2)

(1.7)

Others

(0.0)

(0.0)

(0.0)

Ordinary profit

23.2

26.3

13.5

(JPY bn)
Core profit

400

Ordinary profit+24.5%

26.7
23.2

29.8
26.3

371
37.1

(48.5%)

200

13.5(JPY bn)0

FY18.1Q

FY19.1Q

FY20.1Q*１ Capital gains (losses) exclude gains or losses on hedges of variable life insurance.
*２ Gains (losses) on hedges of variable life insurance offset the impact of market
fluctuations on provision of policy reserves for minimum guarantees for variable life
insurance on page 9.
*3 Provision of contingency reserves are described as negative amount.
（Note）Regarding hedges of variable life insuranceMarket fluctuations resulted in the following accounting gains (losses), due todifferences between Japanese GAAP and economic value-based valuation.
Please refer to page 35 for details.

(JPY bn)
Gains (losses) of variable life
insurance related to market
fluctuation

FY18.1Q

FY19.1Q

FY20.1Q

1.4

0.4

(4.8)

Copyright © Sony Financial Holdings Inc. All rights reserved.

10

Sony Life : Number of Lifeplanner Sales Employees
Number of Lifeplanner Sales Employees
+7

5,164

5,116

5,119

5,146

5,074

5,123
(23)

（Number）

Mar. 19

Jun. 19

Sep. 19

Dec. 19

Mar. 20

Jun. 20

Copyright © Sony Financial Holdings Inc. All rights reserved.

11

Highlights of Operating Performance : Sony Assurance◆ Ordinary Revenues︓Expanded 11.0% year on year, to ¥35.3 billion, owing mainly to
an increase in net premium written for mainstay automobile insurance.
◆ Ordinary Profit︓Increased 82.3% year on year, to ¥7.0 billion, due mainly to a decline in
the loss ratio for automobile insurance.

Ordinary Profit

Ordinary Revenues
31.8＋11.0%

35.3

7.0＋82.3%

3.8(JPY bn)(JPY bn)

FY19.1Q

FY20.1Q

FY19.1Q

FY20.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

12

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

Net Premium Written
Voluntary automobile insurance
Others29.0

Ordinary profit

Personal accident insurance

Adjusted ordinary profit

70
7.0

32.8

30.4

8.1

＋82.3%

＋8.1%

3.8

4.8

4.7

＋67.6%

3.8

200

xx
(JPY bn)0

FY18.1Q

FY19.1Q

FY20.1Q*Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve(JPY bn)0（Reference) Provision for catastrophe reserve

FY18.1Q

FY19.1Q（JPY bn） FY18.1Q

FY20.1Q

Provision for catastrophe reserve(Note) Most of personal accident insurance is medical insurance.

0.9

FY19.1Q

FY20.1Q

0.9

1.0(Note) Provision for catastrophe reserve is described as positive amount.
Copyright © Sony Financial Holdings Inc. All rights reserved.

13

Operating Performance : Sony Assurance (2)◆ Sum of Two Ratios︓Declined due to a decrease in E.I. loss ratio.

Combines Ratio（Net Loss ratio＋ Net Expense Ratio）

Sum of Two Ratios（E.I. Loss Ratio ＋ Net Expense Ratio）
E.I. loss ratio

81.2

81.0

76.1
(12.5pt)

56.9

Net loss ratio

Net expense ratio

56.3(12.4pt)

Net expense ratio

78.2

68.5

(8.1pt)

51.8

43.9

53.5
(8.0pt)(0.1pt)
（%）

70.1

45.5

(0.1pt)

24.3

24.7

24.6

FY18.1Q

FY19.1Q

FY20.1Q(Note)
E.I. loss ratio = (Net losses paid + Provision for reserve for outstanding losses
and claims+ Loss adjustment expenses) / Earned premiums[Earthquake insurance and compulsory automobile liability insurance are excluded.]

（%）

24.3

24.7

24.6

FY18.1Q
FY19.1Q
FY20.1Q(Note)Net loss ratio = (Net losses paid + Loss adjustment expenses) /Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written
Copyright © Sony Financial Holdings Inc. All rights reserved.

14

Highlights of Operating Performance : Sony Bank (Consolidated)◆ Ordinary Revenues : Increased 2.2％ year on year, to ¥12.1 billion.
◆ Ordinary Profit︓Down 5.6% year on year, to ¥2.3 billion.

Ordinary Profit

Ordinary Revenues
11.9

12.1

＋2.2%

2.4

(5.6%)

2.3(JPY bn)(JPY bn)

FY19.1Q

FY20.1Q

FY19.1Q

FY20.1Q

Copyright © Sony Financial Holdings Inc. All rights reserved.

15

Operating Performance : Sony Bank (Non-consolidated)◆ Customer Assets
・Yen Deposits︓Increased due to an increase in newly accumulated funds via the increased numberof accounts.
35,000・Foreign Currency Deposits︓Increased due mainly
to an increase in U.S. dollar deposits in line withappreciation of Japanese yen.
◆ Loans Outstanding・Expanded due to a steady increase in mortgage30,000
loans.
Customer Assets
35,000

Yen deposits

Foreign currency deposit

30,00025,00020,0002,483.3
124.3
419.6

110.4
453.2

Investment trusts

2,732.9

2,592.3

Mortgage loans

20,000122.1+140.5Loans Outstanding

25,000464.8

15,0001,744.1

2,028.6

44.2

39.9*

+72.0

*Corporate loansof ¥23.5 billion,
Card loans of¥16.4 billion.

53.7

15,00010,0001,939.3

2,051.1

1,979.1

1,690.3

10,000

Others1,934.8

2,011.1

Mar. 20

Jun. 20

2,145.9

5,000
5,000

(JPY bn)
0(JPY bn)0Mar. 19

Mar. 20

Jun. 20

Mar. 19

Copyright © Sony Financial Holdings Inc. All rights reserved.

16

Forecast of Consolidated Financial
Results for the Fiscal Year Ending
March 31, 2021
(FY2020)

Forecast of Consolidated Financial Results for FY2020
Ordinary revenues are expected to be roughly flat while ordinary profit and profit attributableto owners of the parents are expected to decrease.
◆ Ordinary revenues︓Expected to be roughly flat, owing mainly to a decline in income frominsurance premiums, primarily from single-premium insurance,
despite an improvement in investment performance in the separate
account, both in the life insurance.
◆ Ordinary profit︓Expected to decrease due to the posting of countermeasure costs
associated with the CONVID-19 pandemic. These higher costs will morethan offset a decrease in costs related to the acquisition of new policies,
which are expected to fall due to a decline in the new policy amount in
the life insurance business.

（JPY bn）
Ordinary revenues

FY2019(Actual)FY2020(Forecast)

Change1,781.4

1,796

＋14.5

+0.8%

Ordinary profit

110.2

96

(14.2)(12.9%)

Profit attributable toowners of the parents

73.2

63

(10.2)(14.0%)

Copyright © Sony Financial Holdings Inc. All rights reserved.

18

Sony Lifeʼs MCEV
as of June 30, 2020
A part of the calculations of MCEV adopted simplified method for that as of June 30, 2020.
Please keep in mind that the validity of these calculations has not been verified by outside specialists.

Sony Life︓MCEV and New Business Value◆ Reasons for Changes in MCEV
・MCEV as of June 30, 2020 increased ¥11.2 billion from March 31, 2020, due mainly to an increase ininterest rates in Japanese yen.
◆ New Business Value / New Business Margin
・New business value for FY20.1Q (3M) decreased from FY19.4Q (3M), to ¥7.8 billion, due mainly to
lower sales volume in line with our restraint of sales activities associated with the COVID-19 pandemic.
・New business margin for FY20.1Q (3M) was up 0.5pt from FY19.4Q (3M), due mainly to an increase
in interest rates.
（JPY bn）

MCEV

Mar. 20

Jun. 20

Change from
Mar. 20

1,713.5

1,724.8+11.2

Adjusted net worth

2,565.8

2,271.4(294.3)

Value of existing business(852.3)(546.6)+305.6（JPY bn）

FY19.4Q(3M)

FY20.1Q(3M)

New business value

17.8

7.8

New business margin

3.9%

4.4%

(Note) Calculated MCEV as of June 30, 2020 by using mainly updated economic assumptions and lapse and surrender rate from March 31, 2020.
*Please refer to page 42-45 for trend on bond yields and yield curves.

Copyright © Sony Financial Holdings Inc. All rights reserved.

20

Sony Life : Breakdown of MCEV for FY20.1Q

Adjusted Profit︓+12.1
1,713.5(28.0)+7.8

MCEV
as of Mar. 20(after dividends paid)

Assumption changes

New business value

Dividend payments
to shareholders

MCEV
as of Mar. 20

1,724.8+4.3
Expected existing business
contribution

1,685.5

+27.0

MCEV
as of Jun. 20(Note) Details on assumption changes : Insurance-related assumption changes:¥(21.6) billion,
economic variances changes (included interest rate fluctuation): +¥48.7 billion.

Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Corporation Making SFH its
Wholly-Owned Subsidiary21

Sony Corporation Making SFH its Wholly-Owned Subsidiary May 19︓Sony Corporation (“Sony”), the controlling shareholder of SFH,
announced the tender offer for SFH shares, etc.
 Tender offer period︓May 20, 2020 〜 Jul. 13, 2020
 Jul. 14︓Sony announced the result of tender offer for SFH shares, etc.
 Sonyʼs ownership of SFH share, etc. after purchase, etc.︓93.47%（excluding treasury shares, as of Jul. 20, 2020)
 Jul. 20︓SFH approved Sonyʼs demand for cash-out of shares Future schedule（planned）
 Jul. 20 〜 Aug. 30︓SFH shares to be designated by the TSE as stock to bedelisted Aug. 28︓Last trading day Aug. 31︓Delisting date
 Sep. 2︓Sony acquire SFH share subject to the cash-out and make SFH its
wholly-owned subsidiary
Copyright © Sony Financial Holdings Inc. All rights reserved.

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

Appendix◆Sony Life
Product Portfolio
Asset Management
General Account Assets
Interest Income and Dividends (Details)
Capital Gains (Losses)
Quarterly Trend on New Policy Amount
Quarterly Trend on Annualized Premiums from New Policies
Quarterly Trend on New Business Value◆Sony Financial Group
Our Perspective on Consolidated Group ESR◆Sony Financial GroupESR
Operating Performance : Sony Life With Insurance
Trend on JGB Yields (Par rate)
Trend on Risk-free Rate (Japanese yen/Par rate)
Trend on U.S. Dollar Bonds Yields (Par rate)
Trend on Risk-free Rate (U.S. Dollar /Par rate)◆Financial Results of Each Group Company (Summary Financial Statements, etc.）
Consolidated/Sony Life/Sony Assurance/Sony BankDetail of Consolidated Adjusted Profit andConsolidated Adjusted Capital◆ Adjusted profit（Numerator)
Sony Financial Group（consolidated）(JPY bn)◆ Adjusted capital (Denominator）

FY2019(12M)

FY19.1Q(3M)

FY20.1Q
(3M)

97.9

25.9

19.5

FY2019(12M)

FY19.1Q(3M)

New business value*

66.9

Expected existing business
contribution*
Adjusted profit

Sony Financial Group（consolidated）(JPY bn)

FY2019FY19.1Q

FY20.1Q

Consolidated adjusted
capital1,846.4

1,811.8

1,849.2

FY20.1Q(3M)

Sony Life(non-consolidated) (JPY bn)

FY2019FY19.1Q

FY20.1Q

17.0

7.8

15.7

3.7

4.3

1,700.8

1,669.6

1,705.1

82.6

20.8

12.1

Adjusted capital（MCEV as of the beginning of
the fiscal year less dividends
paid plus MCEV as of theend of the fiscal year,
divided by two）

FY2019(12M)

FY19.1Q(3M)

FY20.1Q(3M)

FY2019FY19.1Q

FY20.1Q

Net income

5.8

2.7

5.0

Provision amount forcatastrophe reserve(after tax)

2.3

0.7

0.7

55.3

53.2

59.6

Provision amount forreserve for price fluctuations(after tax)

0.0

0.0

0.0

Adjusted profit

8.1

3.4

5.8

Sony Bank(consolidated)

FY2019(12M)

FY19.1Q(3M)

FY20.1Q(3M)

FY2019FY19.1Q

FY20.1Q

7.0

1.6

1.5

90.2

88.9

84.4

Consolidated adjusted
profitSony Life(non-consolidated) (JPY bn)

Sony Assurance(JPY bn）(JPY bn）

Profit attributable toowners of the parent

Sony Assurance(JPY bn)

Adjusted capital(The average amount offollowing items）[Net assets＋Catastrophe
reserve (after tax)
+reserve for pricefluctuations (after tax)]

Sony Bank(consolidated)(億円）(JPY bn）

Adjusted capital（The average amount of net
assets during the period）*Please keep in mind that the validity of these calculations has not been verified by outside specialists for the figures for FY19.1Q and FY20.1Q.
Copyright © Sony Financial Holdings Inc. All rights reserved.

25

Detail of Consolidated Adjusted ROE
FY2019(12M)

FY19.1Q(3M)

FY20.1Q(3M)

Consolidated Adjusted ROE

5.3%

1.4%

1.1%

(Sony Life) Core ROEV

4.9%

1.2%

0.7%

(Sony Assurance) Adjusted ROE

14.7%

6.5%

9.8%

(Sony Bank) ROE

7.8%

1.8%

1.8%

Copyright © Sony Financial Holdings Inc. All rights reserved.

26

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

Sony Financial Group *Sony Life
Core ROEVSony Assurance
Adjusted ROE

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

Net income (loss) + Provision
amount for catastrophe
reserve and its provision ②
amount for reserve for pricefluctuations during the fiscal
year, in each case after taxes＋

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

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

＋

＋

①

＋

④

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

The average amount of net
assets during the fiscal year⑥

* Consolidated Adjusted ROE = Consolidated Adjusted Profit divided by Consolidated Adjusted Capital
Consolidated Adjusted Profit ＝ ①＋②＋③
Consolidated Adjusted Capital ＝ ④＋⑤＋⑥

Copyright © Sony Financial Holdings Inc. All rights reserved.

27

Updated of Major KPIs

Sony Life
Policy Amount in Force *1

49.8

51.4

28.8

51.4

（JPY tn）
Jun. 19

Sony Assurance
Direct Premiums Written
30.3

32.9

Jun. 20

FY18.1Q

4.2

4.5

4.7

（JPY tn）（JPY bn）
Mar. 20

Sony Bank

Retail Balance*2

FY19.1Q

FY20.1Q

Jun. 19

Mar. 20

Jun. 20*1 Individual Life Insurance + Individual Annuities*2 Sum of deposits, investment trusts, financial products intermediary services, mediated discretionary investment contracts and personal loans

Copyright © Sony Financial Holdings Inc. All rights reserved.

28

Financial Soundness

Change from
Mar. 2020

Mar. 19

Mar. 20

Jun. 20

2,590.5%

2,476.3%

2,426.6%(49.7pt)

Sony Assurance
Solvency margin ratio

813.0%

872.3%

972.6%+100.3pt

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

9.58%

8.85％

8.65%

(0.20pt)（%）

Sony Life (non-consolidated)
Solvency margin ratio(Note) Ratios less than the indicated unit have been truncated.

Copyright © Sony Financial Holdings Inc. All rights reserved.

29

Results of Cross-selling Sony Bankʼs Mortgage Loans through Sony Life
Sony Life accounts for 9% of the amount of new mortgage loans for FY20.1Q (3M)
Sony Life accounts for 17% of the balance of mortgage loans as of June 30, 2020
(Note) Sony Life started handling banking agency business in January 2008.

 Sony Assuranceʼs Automobile Insurance Sold by Sony Life
Sony Life accounts for 6% of new automobile policies for FY20.1Q (3Q)
(Note) Sony Life started handling automobile insurance in May 2001.

Copyright © Sony Financial Holdings Inc. All rights reserved.

30

Sony Lifeʼs Product Portfolio(Annualized Premiums from New Policies by Product)
Yen whole
life 3%

FY19.1Q（3M）¥17.5 billion

U.S. dollardenominatedwhole life
18%
Savings typeproducts
41%

FY20.1Q（3M）¥9.8 billion

U.S. dollar-denominatedsingle-premium whole
life insurance 12%

Yen whole
life 4%

Protection-type

U.S. dollar-denominatedwhole life 15%（term-life）
26％

Savings typeproducts
46%

Yen whole
life 3%

FY19（12M）¥82.1 billion

Savings typeproducts
40%

U.S. dollardenominatedwhole life
16%

U.S. dollar-denominatedsingle-premium whole life
insurance 2%
Protection-type（term-life）
33％

U.S. dollar-denominatedsingle-premium whole
life insurance 15%

Protection-type（term-life）
26％(Note) Savings type products : Endowment, annuities, and educational endowment insurances

Copyright © Sony Financial Holdings Inc. All rights reserved.

31

Sony Lifeʼs Asset Management(Purchase Securities in the General Account)
Japanese stocks
0.1%

FY19.1Q（3M）

FY20.1Q（3M）
JGBs
29.5%

Foreign bonds
63.7%

Japanese corporate
bonds 6.6%

Japanese stocks
0.1%

FY19（12M）

Foreign bonds
11.5%
Japanese
corporate
bonds
28.2%

JGBs
60.3%

JGBs
Foreign bonds
50.5%

39.5%
Japanese
corporate
bonds
9.9%

(Note 1) Japanese corporate bonds include FILP agency bonds and Government-guaranteed bonds.
(Note 2) The graphs above are asset allocation for the relevant period. Total invested amount for the relevant period as 100%.
(excluding, investment in subsidiaries and affiliates, and strategic investments)
Copyright © Sony Financial Holdings Inc. All rights reserved.

32

Sony Lifeʼs General Account Assets (Detail of General Account Assets)◆ Asset management review
We have continued to accumulate ultralong-term bonds to match the liability characteristics of insurance
policies with long-term maturities with the aim of reducing interest rate risk.
Mar. 20

Jun. 20◆ Yen Bond duration

Amount%Amount%Japanese bonds(including JGBs)

8,364.5

84.4%

8,514.7

84.5%

Japanese stocks

28.0

0.3%

29.4

0.3%

Foreign bonds

966.9

9.8%

983.3

9.8%

Foreign stocks

28.6

0.3%

28.1

0.3%

Policy loans

208.0

2.1%

219.7

2.2%

Real estate*

92.5

0.9%

92.3

0.9%

Cash and call loans

79.8

0.8%

48.8

0.5%

Others

146.2

1.5%

164.4

1.6%

Total

9,914.9

100.0%

10,081.0

100.0%（JPY bn）

Mar. 19 : 21.8 years
Mar. 20 : 21.8 years
Jun. 20 : 21.5 years* Real estate is the total of land, buildings, and construction in progress.

Copyright © Sony Financial Holdings Inc. All rights reserved.

33

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

FY19.1Q

FY20.1Q

ChangeJapanese bonds(including JGBs)

33,011

34,597＋4.8%

Japanese stocks

8129(64.2%)

Foreign securities

6,141

8,907

＋45.1%

Loans

1,736

1,688

(2.8%)

Real estate

2,422

2,415

(0.3%)

109

105(3.5%)

43,50147,743＋9.8%

OthersTotal

Copyright © Sony Financial Holdings Inc. All rights reserved.

34

Sony Lifeʼs Capital Gains (Losses)（JPY mn）
Capital losses

FY19.1Q

FY20.1Q

14,93928,891

Losses on derivatives, net（JPY mn）

FY19.1Q

FY20.1Q

13,741

7,137

5

ー

Capital gains

1,579

21,981

Gains on trading securities, net

Losses on hedges of variable life
insurance…(1)1,781

20,878

Gains on sale of securities…(3)

1,238

ー

Losses on hedges of available-forsale securities…(2)

(222)

1,109

Other capital gains (losses)

12,497

7,137

7

(29)

12,497

7,137

13,3346,680(1,197)(21,753)

13,660

6,769

(333)

(120)

25

229

25

229

Losses on U.S. dollardenominated insurance (foreignexchange losses)…(4)Foreign exchange losses, net
Losses on U.S. dollardenominated insurance…(4)Losses on hedges of variable life
insurance…(1)Other capital losses
Impairment loss of Private Equity
Funds◆ Capital Gains (Losses) on Main Items, Net Amounts（JPY mn）

FY19.1Q

FY20.1Q(1) Gains (losses）on hedges of variable life
insurance(1,447)(20,758)

222(1,109)1,238

ー(1,170)398(2) Gains (losses）on hedges of availablefor-sale securities(3) Gains (losses) on sale of securities(4) Gains (losses) on U.S. dollardenominated insurance

Gains on U.S. dollar-denominatedinsurance（the reversal of policy
reserves for foreign exchange
fluctuations)… (4)Net capital gains (losses)(Note 1) The figures of gains (losses) on trading securities, net, gains (losses) on derivatives
and foreign exchange gains (losses), net were recorded after offsetting gains andlosses of each item.
（Note 2）Sony Life increased its hedge ratio for variable life insurance and exchange fluctuation
risk related to U.S. dollar-denominated insurance from FY2019 with a greater
emphasis on suppressing capital fluctuations based on economic value, which are moresuitable for valuing the growth of the life insurance business. However, assessment of
the policy reserve and others differs between Japanese GAAP and economic valuebased valuation, which makes Japanese GAAP accounting profits more susceptible tomarket conditions.
・Please refer page 10 for the relationship between the (1) Gains (Losses）on hedges ofvariable life insurance and fluctuation of liabilities, which are the hedged items.
・(4) Gains (losses) on U.S. dollar-denominated insurance under “Capital Gains (Losses)
on Main Items, Net Amounts” are the net amount after offsetting net gains (losses) onhedges exchange fluctuation risk related to U.S. dollar-denominated insurance andfluctuation of liabilities which are the hedged items.

Copyright © Sony Financial Holdings Inc. All rights reserved.

35

Sony Lifeʼs Quarterly Trend on New Policy Amount

1,674.7
1,485.0

1,435.5

1,570.7

1,555.1
1,219.1

1,317.2

1,291.7

660.0（JPY bn）

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

FY19.2Q

FY19.3Q

FY19.4Q

FY20.1Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

36

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

Of which, third-sector

30.9
24.9
18.7

19.2

21.1

18.9

18.5

17.5

9.8

（JPY bn）

3.3

3.9

3.8

4.0

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

3.1

3.1

3.1

3.5

FY19.1Q

FY19.2Q

FY19.3Q

FY19.4Q

1.6
FY20.1Q(Note) Individual Life Insurance + Individual Annuities

Copyright © Sony Financial Holdings Inc. All rights reserved.

37

Sony Lifeʼs Quarterly Trend on New Business Value

21.9

22.6

23.6

23.1

17.0
14.8

17.1

17.8

7.8

（JPY bn）

FY18.1Q

FY18.2Q

FY18.3Q

FY18.4Q

FY19.1Q

FY19.2Q

FY19.3Q

FY19.4Q

FY20.1Q(Note) New business value is calculated accumulating new business value for each month based on economic assumptions at the end of each month.

Copyright © Sony Financial Holdings Inc. All rights reserved.

38

Our Perspective on Consolidated Group ESR
 Consolidated Group ESR︓Consolidated Group ESR is an indicator of capital sufficiency with respect to
the Groupʼs risk amount. Currently the target level of consolidated Group ESR
is between 180% and 250% from the viewpoint of ERM to ensure financial
soundness and capital efficiency.
Invest in growth, take on additional risk
and expand shareholder returns

 Consider investing in growth, taking on
additional risk and adopting a flexible
response to shareholder returns

（%）

250
Comfortablezone

Consolidated GroupESR
Approx. 230%
(As of Jun. 2020)180


Recover capital levels by reducing risk
and retaining profitConsider shoring up capital, review
shareholder returns

100(Note 1) We use consolidated Group ESR (an internal management indicator) to assist in making comprehensive management decisions. The indicator refers to thecalculation methods used for European Solvency II and ICS, with some simplification. No third-party verification is conducted with respect to the calculation
process or the appropriateness of its results.
39(Note 2) Please refer to page 40 for Sony Lifeʼs ESR.
Copyright © Sony Financial Holdings Inc. All rights reserved.

Sony Lifeʼs ESRThe risk amount based on economic value as of June 30, 2020 was ¥776.4 billion, decreased ¥28.8 billion
from March 31, 2020, due mainly to a decrease in insurance risk resulting from higher interest rates.
ESR as of June 30, 2020 was 226%, up 9pt from March 31, 2020 due mainly to a decrease in risk amountbased on economic value.
（JPY bn）

Mar. 20

Jun. 20

Change from
Mar. 20

Insurance risk

607.6

568.8

(38.8)

Market-related risk

334.9

349.1

＋14.2

178.5

202.3

＋23.8

Operational risk

40.3

37.2

(3.1)

Counter party risk

3.8

3.4

(0.3)

(181.5)(182.3)

(0.7)

805.2

776.4

(28.8)Of which, interest rate risk

Variance effect
The risk amount based on
economic value（JPY bn）
MCEV＋Frictional costs
ESR

Mar. 20

Jun. 20

Change from
Mar. 20

1,743.3

1,753.4

＋10.0

216%

226%

+9pt

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

40

Operating Performance : Sony Life With Insurance◆Sony Life With Insuranceʼs new policy amount and policy amount in force

Number and Amount of New Policies*1

Number and Amount of Policies in Force*2

New policy amount

Policy amount in force

Number of new policies (Thousands of policies)

Number of policies in force (Thousands of policies)

1.7

1.5

18
16
14

10.1

524.1

531.9

95.5

99.3

12
(88.4%)

7.1

+1.1%

537.7
99.2

(0.1%)

108
6(91.2%)（JPY bn）

4

0.2

2

0.8
FY18.1Q

FY19.1Q（JPY bn）

0

FY20.1Q

Jun. 19

Mar. 20

Jun. 20* Amounts for FY18.1Q are individual annuities while amounts for FY19.1Q and FY20.1Q are total of individual insurance and individual annuities.

◆Net income (losses) for Sony Life With and SA Reinsurance（JPY bn）

Sony Life With Insurance

FY19.1Q

ChangeFY20.1Q

(0.4)

(0.0)

＋0.3

0.0

(2.1)

(2.2)

SA Reinsurance(Note) On Jan. 29, 2020, Sony Life With Insurance (former AEGON Sony Life Insurance) and SA Reinsurance converted into wholly owned subsidiaryʼs of SFH and Sony Life.
For FY19.1Q, 50% of the net income (losses) was recognized as investment profit (losses) on equity method in the SFHʼs consolidated net income.
SA Reinsurance prepares its financial statements in accordance with U.S. GAAP.
Copyright © Sony Financial Holdings Inc. All rights reserved.

41

Trend on JGB Yields (Par rate)
10 years
0.70%

20 years
30 years
40 years

0.50%

0.30%

0.10%

(0.10%)△0.10%△0.30%(0.30%)

Mar. 20

Apr. 20

Mar. 20

Apr. 20

May. 2020

Jun. 20

May 20Jun. 20

10 years

0.03%(0.04%)

0.01%

0.04%

20 years

0.31%

0.30%

0.35%

0.42%

30 years

0.42%

0.42%

0.50%

0.59%

40 years

0.44%

0.44%

0.53%

0.62%

Copyright © Sony Financial Holdings Inc. All rights reserved.

42

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

1.50%
1.30%

Convergence
period: 20 year

Mar. 20
Jun. 20

1.10%
0.90%
0.70%
0.50%
0.30%
0.10%
△0.10%(0.10%)△0.30%(0.30%)
1 yearLast liquid point:
40 year

10

20

30

40

50

60

70

80

years

years

years

years

years

years

years

years

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

43

Trend on U.S. Dollar Bonds Yields (Par rate)
2.50%

10 years
20 years

2.00%

30 years

1.50%

1.00%

0.50%

0.00%

Mar. 20
Mar. 20

Apr. 20

May. 2020

Apr. 20

May 20Jun. 20
Jun. 20

10 years

0.67%

0.64%

0.65%

0.66%

20 years

1.05%

1.05%

1.18%

1.18%

30 years

1.32%

1.29%

1.41%

1.41%

Copyright © Sony Financial Holdings Inc. All rights reserved.

44

Trend on Risk-free Rate (U.S. Dollar /Par rate)
Convergence
period: 30 year

2.55%
Mar. 20
Jun. 20

2.05%

1.55%

1.05%

0.55%

Last liquid point:
30 year0.05%

1 year

10
years

20
years

30
years

40
years

50
years

60
years

70
years

80
years

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

45

Consolidated︓Summary Financial Statements
FY19.1Q

FY20.1Q

368.8

491.7

+122.9+33.3%

Ordinary profit

26.0

11.3

(14.6)(56.4%)

Ordinary revenues

31.8

35.3

+3.4

+11.0%

3.8

7.0

+3.2

+82.3%

11.9

12.1

+0.2

+2.2%

Ordinary profit

2.4

2.3

(0.1)

(5.6%)

Ordinary revenues

1.0

1.3

+0.2

+29.6%

Ordinary profit

(0.2)

(0.2)

(0.0)

－

Ordinary revenues

413.6

540.6

+126.9+30.7%

Ordinary profit

32.1

20.4

(11.6)(36.3%)

Profit attributableto owners of the
Parent

22.3

13.1

(9.2)

(41.3％)（JPY bn）
Life insurance
business
Non-life
insurancebusiness
Bankingbusiness
Intersegment
adjustments*

Consolidated

Ordinary revenues

Ordinary profit
Ordinary revenues

Change*“Intersegment adjustments” is from SFH, the nursing care business, and the venture capital business.
SmartLink Network Europe B.V. is included in the scope of consolidation from FY19.2Q, and Sony Life With Insurance andSA Reinsurance are included in the scope of consolidation from FY19.4Q, respectively.
(Note) Comprehensive income : FY19.1Q: ¥25.5 billion, FY20.1Q: ¥20.3 billion（JPY bn）

Consolidated

Net assets
Total assets

Mar. 20

Jun. 20

Change from Mar. 20

691.9

681.8

(10.1)(1.5%)

15,125.7

15,687.7+562.0+3.7%

Copyright © Sony Financial Holdings Inc. All rights reserved.

46

Sony Life︓Summary Financial Statements（Non-consolidated）
FY19.1Q

FY20.1Q

368.8

471.3

+102.4+27.8%

Income from insurance
Premiums

301.4

270.4

(30.9)(10.3%)

Investment income

64.3

194.6

+130.2+202.4%（JPY bn）
Ordinary revenues

ChangeInterest income
and dividends

43.5

47.7

+4.2

+9.8%

Gains on sale ofSecurities

1.2

－

(1.2)

(100.0%)Gains on separate
accounts, net

18.4

146.8

+128.4+694.8％

342.4

457.7

+115.2＋33.7%

Insurance claims andother payments

109.4

112.6

+3.1

＋2.9%

Provision for policy
reserves and others

168.9

262.9

+93.9

+55.6%

Investment expenses

16.7

30.4

+13.7

+82.3%

Losses onderivatives, net

1.5

21.9

+20.4

ー

Foreign exchange
losses, net

13.3

6.6

(6.6)

(49.9%)

Ordinary expenses

37.3

40.7

+3.3

＋8.9%

Ordinary profit

26.3

13.5

(12.7)(48.5％)Net income

18.3

9.1

(9.2)

(50.1%)

Operating expenses

Change from
Mar. 20

Mar. 20

Jun. 20

Securities

10,629.9

10,985.5+355.5＋3.3%

Policy reserves

9,959.8

10,222.7＋262.9

＋2.6%

539.5

517.1

(22.4)(4.2%)

125.0

121.5

(3.5)

(2.9%)

11,237.1

11,593.9+356.8+3.2%

1,323.9

1,512.9+188.9＋14.3%（JPY bn）

Net assets
Net unrealized
gains on othersecurities
Total assets
Separate accountassets*（JPY bn）

FY19.1Q

FY20.1Q

29.1

17.2

Gains frominvestment, net(General account)）

Change(11.8)(40.8%)*A portion of surplus investment funds are jointly invested, which amounted
to ¥1.7 billion as of March 31, 2020.

Copyright © Sony Financial Holdings Inc. All rights reserved.

47

Sony Assurance︓Summary Financial Statements(Underwriting Performance by Type of Policy)◆ Direct Premiums Written（JPY bn）

FY19.1Q

FY20.1Q（JPY mn）

ChangeOrdinary revenues

31.8

35.3

+3.4

+11.0%

Underwriting
income

31.2

35.0

+3.8

+12.2%

Investment
income

0.6

0.3

(0.3)

(51.3%)

Ordinary expenses

27.9

28.2

+0.2

+1.1%

Underwriting
expenses

20.9

20.7

(0.2)

(1.0%)

Operating generaland administrative
expenses
Ordinary profit
Underwriting
incomeNet income

7.0

7.5

+0.5

+7.2%

3.8

7.0

+3.2

+82.3%

3.2

6.7

＋3.5

+107.2%

2.7

5.0

+2.3

+83.8%Fire
MarineFY19.1Q

FY20.1Q

374

952

Change+154.3%ーーー

Personal accident

2,277

2,223

(2.4%)

Voluntary automobile

27,69529,752

＋7.4%

ー

ー

ー

30,34732,927+8.5%

FY19.1Q

FY20.1Q

197

543

Compulsory
automobile liability
Total◆ Net Premiums Written（JPY mn）
Fire
MarineChange+175.3%ー

0ー

Personal accident

2,244

2,294

+2.2%

Voluntary automobile

27,621

29,661

+7.4%

354

368

+3.9%

30,41832,868+8.1%

Compulsory
automobile liability
Total◆ Net losses paid
Change from
Mar. 20（JPY mn）

Mar. 20

Jun. 20

Underwriting
reserves

131.9

144.3

+5.2

+3.7%

Net assets

37.7

40.2

+2.4

+6.4%

Voluntary automobile

Total assets

234.8

238.2

+3.3

+1.4%

Compulsory
automobile liability（JPY bn）

Fire
MarinePersonal accident

Total

FY19.1Q

FY20.1Q

Change319+497.1％

(3)

0

ー

763

804

+5.4%

13,097

11,598(11.4%)

323

327

+1.3%

14,18312,750(10.1%)(Note) Medical insurance is included in personal accident.
Copyright © Sony Financial Holdings Inc. All rights reserved.

48

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

FY19.1Q

FY20.1Q

ChangeOrdinary revenues

11.9

12.1

+0.2

+2.2%

Ordinary profit

2.4

2.3

(0.1)

(5.6%)

Profit attributable toowners of the parent

1.6

1.5

(0.0)

(5.8%)◆ Non-consolidated（JPY bn）◆ Balance of Securities by Credit Rating（Non-consolidated）

FY19.1Q

FY20.1Q

Ordinary revenues

10.7

10.7

＋0.0

+0.1%

Gross operating profit

6.2

6.6

＋0.3

＋5.7%

Net interest income

5.9

6.2

＋0.2

＋4.4%

(0.6)

(0.2)

＋0.3

－

Net fees andcommissions

ChangeNet other operating
income

0.8

0.6

(0.2)

(24.7%)

General andadministrative expenses

4.1

4.5

＋0.4

＋11.4%Net operating profit

2.1

2.0

(0.1)

(5.8%)

Ordinary profit

2.1

2.0

(0.1)

(5.9%)Net income

1.5

1.4

(0.0)

(6.0%)（JPY bn）
Net assets
Net unrealized gains
on other securities,
net of taxes
Total assets

Mar. 20

Jun. 20

Change from
Mar. 20

Mar. 20

Jun. 20

AAA

308.1

340.3

+32.1

+10.4%

AA

67.4

67.0

(0.3)

(0.6%)

A

277.3

311.9

+34.5

+12.5％

BBB

28.9

34.4

＋5.4

＋18.9％

Others

21.4

22.9

＋1.5

+7.0%

Total

703.3

776.7

＋73.3

+10.4%（JPY bn）

Change from
Mar. 20

77.3

85.1

+7.7

+10.1％(10.2)

(0.7)

+9.5

ー

3,079.4

3,279.9＋200.4+6.5%
Copyright © Sony Financial Holdings Inc. All rights reserved.

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

49