Sony Financial Group (8729) Investor presentation summary

Key financial figures

• Consolidated adjusted net income for FY24 2Q YTD was 48.7 billion yen, with adjusted ROE at 9.9%.

• Sony Life's new business value remained high, driven by strong policy acquisition and comprehensive equity growth.

• Sony Assurance maintained high growth in direct premiums, though profits face risks from natural disasters and claims.

• Sony Bank's profits are steady, supported by favorable investment performance and growth in mortgage loans and foreign currency deposits.

• CSM balances are steadily increasing through new policies, though cancellations remain a challenge.

Growth strategies for the corporate market

• Expanded focus on corporate clients in both Lifeplanner and agency channels, with successful agency support and optimized sales activities.

• Biz-Plan WEB system enables advanced consulting for corporate clients, covering finance, cash flow, business succession, and risk management.

• Differentiation through accompanying-type consulting and advanced agency supporter roles, enhancing trust and productivity.

• Strategic expansion targets 5,000 Lifeplanner specialists and increased agency supporters by FY30, with product diversification and market expansion into medium-sized companies.

• Product mix is shifting toward capital-light, savings-type, and protection-type products to achieve higher margins and manage risk.

Financial issues and risk management

• ESR remains within the target range, with ongoing efforts to reduce cancellation and interest rate risks via asset, product, and sales strategies.

• Asset-liability duration matching is being improved to reduce over-hedging and interest rate sensitivity, using bond sales and derivatives.

• Measures are in place to stabilize capital and reduce ESR sensitivity to interest rate changes, aiming for less than 10pts sensitivity to a 50bp rate rise.

• Adjusted net income and ROE exclude temporary gains/losses to better reflect sustainable earning power.

• Shareholder return policy targets a 40-50% payout ratio and stable dividend growth, with recapitalization considered if ESR exceeds 235%.