FY2026 Second-Quarter Results Briefing Materials | Sony Financial Group Inc. (8729) timely disclosure

Worth reading

62In focus

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Direction

Mixed performance

Direction inferred from the company’s description.

Scale

32.6

Year on year (group consolidated adjusted net income, %)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationFY2026 second quarter9 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥5,452 100 million group consolidated operating revenue, first half of FY2026

Ordinary income¥416 100 million group consolidated pretax profit, IFRS, first half of FY2026

Net income¥286 100 million net income after tax, IFRS, first half of FY2026

Full-year earnings forecast

Group consolidated operating revenue

¥10,900 100 million

Group consolidated profit before tax

¥280 100 million

Consolidated adjusted net income

¥1,100 100 million

Adjusted net income from the life insurance business

¥850 100 million

Adjusted net income from the non-life insurance business

¥120 100 million

Adjusted net income from the banking business

¥150 100 million

Dividend per share

¥8interim + year-end

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Life insurance business

Lower repo costs and higher interest and dividend income, among other factors35

Increase in CSM amortization and other factors30

Increase in loss components-40

Interest-Rate Hedging40

Non-life insurance business

Improved business expense efficiency15

Increase in incurred claims-11

Revenue growth effect6

Banking Business

Increase in net interest income from yen and foreign-currency operations30

Increase in operating expenses-23

Increase in revenue from market investment operations14

ESR

Subordinated financing8

Use of derivatives3

Bond sales2

Dividends-2

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

40-year JGB compound yield

4 % average during October 2026

Adjusted net income sensitivity to a 10 bp increase in interest rates

-4 Approx. ¥100 million/year

Market conditions impact

AssumptionNo significant change from the level at the end of the latest quarter as of the time each outlook was published

New initiatives

Sony Assurance begins sales of long-term automobile insurance
Sony Life issues USD 700 million of US dollar-denominated subordinated bonds
Bond sales, use of derivatives and asset rotation to stabilise ESR

Key KPIsA metric the company considers important as a management benchmark.

Annualized premiums from new business¥765 100 million
Year on year against the same period last year-8.9%
Consolidated adjusted net income¥624 100 million
Year on year against the same period last year+32.6%
Consolidated ESR176 %
Year on year against the same period last yearUp 3 percentage points from the end of the previous quarter
CSM balance¥20,836 100 million
Lapse and surrender rate (Sony Life overall, FY26 2Q)1.98 %
Year on year against the same period last yearIncreased
Net premiums written (Sony Assurance)¥1,101 100 million
Foreign-currency deposits balance (Sony Bank)¥8,760 100 million
Year on year against the same period last yearIncrease from the end of the previous fiscal year

Segment results

Life insurance business

Operating revenue

¥3,677 100 million

Profit before tax

¥98 100 million

Adjusted net income

¥483 100 million+27.7%

Non-life insurance business

Operating revenue

¥1,005 100 million

Profit before tax

¥85 100 million

Adjusted net income

¥60 100 million+30.7%

Banking Business

Operating revenue

¥699 100 million

Profit before tax

¥238 100 million

Adjusted net income

¥83 100 million+42.9%

Number of employees

Number of life planners6,064 people

Change during the period+33 employees vs. end-FY25

Annual Dividend

8 yen per share

Interim4

End of period4

Payout ratio

Guideline of 40–50% (FY26 forecast: 49%)

Acquisition of treasury shares

FY25 actual: ¥69.8 billion and 440 million shares (379 million already cancelled)

PeriodFY2025 actual results

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	FY2026 second quarter
Net Sales	¥5,452 100 million (group consolidated operating revenue, first half of FY2026)
Ordinary income	¥416 100 million (group consolidated pretax profit, IFRS, first half of FY2026)
Net income	¥286 100 million (net income after tax, IFRS, first half of FY2026)
Full-year earnings forecast	Group consolidated operating revenue ¥10,900 100 million / Group consolidated profit before tax ¥280 100 million / Consolidated adjusted net income ¥1,100 100 million / Adjusted net income from the life insurance business ¥850 100 million / Adjusted net income from the non-life insurance business ¥120 100 million / Adjusted net income from the banking business ¥150 100 million / Dividend per share ¥8 (interim + year-end)
Segment results	Life insurance business Operating revenue ¥3,677 100 million / Profit before tax ¥98 100 million / Adjusted net income ¥483 100 million (YoY +27.7%) / Non-life insurance business Operating revenue ¥1,005 100 million / Profit before tax ¥85 100 million / Adjusted net income ¥60 100 million (YoY +30.7%) / Banking Business Operating revenue ¥699 100 million / Profit before tax ¥238 100 million / Adjusted net income ¥83 100 million (YoY +42.9%)
Breakdown of Factors Affecting the Change	Life insurance business Lower repo costs and higher interest and dividend income, among other factors 35 / Increase in CSM amortization and other factors 30 / Increase in loss components -40 / Interest-Rate Hedging 40 / Non-life insurance business Improved business expense efficiency 15 / Increase in incurred claims -11 / Revenue growth effect 6 / Banking Business Increase in net interest income from yen and foreign-currency operations 30 / Increase in operating expenses -23 / Increase in revenue from market investment operations 14 / ESR Subordinated financing 8 / Use of derivatives 3 / Bond sales 2 / Dividends -2
Key KPIs	Indicator name Annualized premiums from new business / Value ¥765 100 million / Year on year against the same period last year ¥-8.9 100 million, Indicator name Consolidated adjusted net income / Value ¥624 100 million / Year on year against the same period last year ¥32.6 100 million, Indicator name Consolidated ESR / Value 176 % / Year on year against the same period last year Up 3 percentage points from the end of the previous quarter, Indicator name CSM balance / Value ¥20,836 100 million / Year on year against the same period last year Not disclosed, Indicator name Lapse and surrender rate (Sony Life overall, FY26 2Q) / Value 1.98 % / Year on year against the same period last year Increased, Indicator name Net premiums written (Sony Assurance) / Value ¥1,101 100 million / Year on year against the same period last year Not disclosed, Indicator name Foreign-currency deposits balance (Sony Bank) / Value ¥8,760 100 million / Year on year against the same period last year Increase from the end of the previous fiscal year
Number of employees	Number of life planners 6,064 people / Change during the period +33 employees vs. end-FY25
Assumptions Underlying the Business Outlook	40-year JGB compound yield Value 4 % (average during October 2026) / Adjusted net income sensitivity to a 10 bp increase in interest rates Value -4 Approx. ¥100 million/year / Market conditions impact Assumption No significant change from the level at the end of the latest quarter as of the time each outlook was published
Annual Dividend	8 yen per share
Payout ratio	Guideline of 40–50% (FY26 forecast: 49%)
Acquisition of treasury shares	FY25 actual: ¥69.8 billion and 440 million shares (379 million already cancelled)
New initiatives	Sony Assurance begins sales of long-term automobile insurance, Sony Life issues USD 700 million of US dollar-denominated subordinated bonds, Bond sales, use of derivatives and asset rotation to stabilise ESR

Items this document does not state (16)

Operating profitGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Adjusted net income increased due to higher earnings from the life insurance, non-life insurance and banking businesses. The decrease in new business annualized premiums was due to weakness in both the Life Planner and agency channels. The revision to the pretax profit forecast reflects the impact of market fluctuations at Sony Life during the first half.

How to read this page

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