Sony Group Corporation · TSE:6758
Sony — Investor Presentation (November 2024)
41 slides from Sony's investor presentation, Nov 28, 2024
Slide 1: Financial Services Segment Small Meeting
Financial Services Segment Small Meeting Sony Financial Group Inc. President & CEO, Representative Corporate Executive Officer Toshihide Endo Corporate Executive Officer & CFO Kazuhiro Yamada November 28, 2024
Slide 2: Notes on IFRS and adjusted metrics
Sony Financial Group (“SFG”) refers to the financial services group consisting of Sony Financial Group Inc. (“SFGI”), and its subsidiaries including Sony Life Insurance Co., Ltd. (“Sony Life”), Sony Assurance Inc. (“Sony Assurance”), Sony Bank Inc. (“Sony Bank”), Sony Lifecare Inc. (“Sony Lifecare”)
Slide 3: Agenda
1. Key Financial Figures 2. Growth Strategies for the Corporate Market (Sony Life) 3. Financial Issues (SFG Consolidated/Sony Life)
Slide 4: Summary of Key Financial Figures (IFRS)
Summary of Key Financial Figures (IFRS) SFG's consolidated adjusted net income for the FY24 2Q YTD was 48.7 billion yen. Sony Life's IFRS new business value continued to be at a high level. Comprehensive equity also expanded steadily, driven by the acquisition of new policies (reflected in post-
Slide 5: Analysis of Changes in SFG Adjusted Net Income and Sony Life's NBV Breakdown
Analysis of Changes in SFG Adjusted Net Income and Sony Life’s New Business Value Breakdown (IFRS) Adjusted net income slightly decreased year-on-year due to the impact of cancellations at Sony Life and an increase in expenses (mainly brand loyalty). IFRS new business value continued to be drive
Slide 6: Characteristics / Key Financial Figures of Sony Bank and Sony Assurance
Characteristics / Key Financial Figures of Sony Bank and Sony Assurance For Sony Assurance, natural disasters and rising insurance claims remain risk factors for profits. The top line is maintaining a high growth rate. Sony Bank's profits are steady due to favorable investment performance. Mortg
Slide 7: Agenda
1. Key Financial Figures 2. Growth Strategies for the Corporate Market (Sony Life) 3. Financial Issues (SFG Consolidated/Sony Life)
Slide 8: Growth in the Corporate Market (insurance for business owners)
Growth in the Corporate Market (insurance for business owners) Strengthened not only the segment of individuals, which is the core segment, but also the segment of corporates in the LP channel. In the agency channel, the approach to agencies with a strong channel to corporates has been successfu
Slide 9: Overview of the Corporate Market - by customer need
Overview of the Corporate Market - by customer need The main needs for small and medium-sized companies are business security and business succession. However, business succession requires a higher level of consultation skills. In addition to the above two areas, medium-sized companies especiall
Slide 10: Corporate Market Overview - by channel and segment
Corporate Market Overview - by channel and segment Sony Life has particular strengths in providing business security through consulting to small companies, both in the LP and agency channels. Company Size Lifeplanner ("LP") Channel (Number of employees) Agency Channel Large Some of the (500 or mor
Slide 11: Biz-Plan WEB - Strong Support for Corporate Sales
Biz-Plan WEB - Strong Support for Corporate Sales Biz-Plan WEB is an advanced system that enables the provision of consulting services 1 to 4 below in the corporate market, and enabling Sony Life to provide services that set it apart from other companies. Company Stock Evaluation 1 Finance - “Rais
Slide 12: LP Channel x Corporate Market - Differentiator (Accompanying-type Consulting)
LP Channel x Corporate Market - Differentiator (Accompanying-type Consulting) Sony Life is gaining trust through accompanying-type consulting that addresses a wide range of management issues. Sony Life's Accompanying-Type Consulting Traditional Consulting Focused on Products Sales Personnel Lifepl
Slide 13: Agency Channel x Corporate Market - Differentiators (Strengths of Agency Supporters)
Agency Channel x Corporate Market - Differentiators (Strengths of Agency Supporters) The key differentiator of Agency Supporters is their ability to provide 1) sales support based on advanced consulting skills to agents and 2) management support for agency management, such as systems development,
Slide 14: Measures and Results during the unlisted period in the corporate market
Measures and Results during the unlisted period in the corporate market Analyze the impact of tax reform and the COVID-19 pandemic on the business environment, predict future changes, and formulate strategies. To extend the consulting sales approach to the corporate market, we have built up a "t
Slide 15: The Direction of Corporate Market Strategies by channel
The Direction of Corporate Market Strategies by channel LP Channel x Corporate Market Agency Channel x Corporate Market Expansion of Increase the LP that utilize 2,833people 5,000people number of agency 265people Continuous End of Sep. 2024 FY30 Target supporters End of Sep. 2024 increase Biz-Plan W
Slide 16: Agenda
1. Key Financial Figures 2. Growth Strategies for the Corporate Market (Sony Life) 3. Financial Issues (SFG Consolidated/Sony Life)
Slide 17: Group Consolidated ESR and Breakdown of Risk
Group Consolidated ESR and Breakdown of Risk ESR remains within the target range. We aim to continuously reduce cancellation risk and interest rate risk through the implementation of a three-pronged management approach that combines asset management strategy, product strategy and sales strategy.
Slide 18: Asset and Liability Cash Flow and Duration Matching Ratio (yen basis)
Asset and Liability Cash Flow and Duration Matching Ratio (yen basis/Sony Life Non-consolidated) Aim to reduce over-hedging by selling bonds, rebalancing, and using derivatives. The super-long-term debt (over 41 years) zone aims to shorten the debt duration through sales control. Asset and Liabi
Slide 19: Measures to reduce the interest rate sensitivity of ESR and its effects
Measures to reduce the interest rate sensitivity of ESR and its effects (Sony Life Non-Consolidated) The issue is the sensitivity of ESR when yen interest rates rise. Through stabilizing capital and reducing risk, we plan to reduce interest rate sensitivity, and in the medium to long term, we ai
Slide 20: Appendix | Growth Strategies for the Corporate Market
Appendix | Growth Strategies for the Corporate Market
Slide 21: LP channel x corporate market - Mid-Range Plan Strategy
LP channel x corporate market - Mid-Range Plan Strategy Strengthening the business security area by improving consulting skills through the expansion of Lifeplanner sales specialists that utilize Biz-Plan WEB. By providing opportunities to acquire advanced knowledge, incorporating the establishe
Slide 22: (Reference) Product line-up to address customer needs
(Reference) Product line-up to address customer needs Business Security Employee Benefits Business Succession Necessary insurance coverage in the event of the death of the business Bereavement and Variable owner retirement benefits for term (Companies with stable Yen- employees business performance
Slide 23: Appendix | CSM Movement
Appendix | CSM Movement
Slide 24: Breakdown of Sony Life's Pre-tax CSM Movement
Breakdown of Sony Life’s Pre-tax CSM Movement at the Beginning and End of the Period(IFRS) CSM balance is steadily growing through the acquisition of new policies. While CSM release is increasing, a decrease due to cancellations is an issue. (billion yen) Opening/Closing CSM Balance New Business C
Slide 25: New Business Value and New Business Margin by Products
New Business Value and New Business Margin by Products Restrict the sale of capital-intensive whole life insurance, etc., and shift to the sale of capital-light savings-type and protection-type products. Achieve high new business margins by appropriate management of risk and profit. Product Mix
Slide 26: CSM Movement by Products (Capital-intensive, Protection-type)
CSM Movement by Products (Capital-intensive products, Capital-light products – Protection-type） (IFRS) CSM balance is steadily growing through the acquisition of new policies. While CSM amortization is increasing, the fact that it is decreasing due to cancellations is an issue. We aim to acceler
Slide 27: CSM Movement by Products (Savings-type)
CSM Movement by Products (Capital-light products – Savings-type (IFRS) For savings-type products such as SOVANI, we aim to steadily increase the balance and contribute to profits over the long term. SOVANI is expected to make a small contribution to short-term IFRS profits but is expected to mak
Slide 28: Appendix | Financial Information
Appendix | Financial Information
Slide 29: Asset and Liability Cash Flow and Duration Matching Ratio (Dollar basis)
Reference: Asset and Liability Cash Flow and Duration Matching Ratio (Dollar basis /Sony Life Non-consolidated) Due to an increase in cancellations resulting from the depreciation of the yen and a review of the future cancellation rate for liability valuation based on this, the liability CF and li
Slide 30: Balance Sheet Image of Sony Life
Balance Sheet Image of Sony Life（as of the end of FY24 Q2） (trillion yen) 15.3 15.3 Yen-denominated fixed insurance Yen-denominated 5.2 bonds (fixed) 7.1 Insurance liabilities Yen repo 0.3 Dollar-denominated insurance 1.0 [Breakdown] ALM1 Dollar repo 0.6 objective Dollar-denominated Portion attribut
Slide 31: Sony Life | Key Results Indicators
Sony Life | Key Results Indicators Net Income and ROE (Non-consolidated, IFRS) Other Key Financial Indicators (Non-consolidated, J-GAAP) : Net Income :1H Total :1H Total Adjusted Annualized Premiums from New Policies :2H Total :2H Total Net Income Adjusted items in reconciliation of net income to ad
Slide 32: Sony Life | LP Channel Indicators
Sony Life | LP Channel Indicators NBV by LP Channel (IFRS) Number of Lifeplanner Sales Specialists and Percentage of MDRT1 Members Individual Corporate : Percentage of Lifeplanner sales specialists who are also MDRT members : Number of Lifeplanner sales specialists who are also MDRT members 5,402 5,
Slide 33: Sony Assurance | Key Results Indicators
Sony Assurance | Key Results Indicators Net Income and ROE (IFRS) Direct Premiums Written by Line (J-GAAP) (billion yen) Auto Fire Others : Net Income 154.7 146.5 9.8 9.4 :1H Total 8.5 Adjusted Net Income1 8.5 :2H Total 84.7 : Adjusted ROE 75.6 4.9 4.9 128.5 136.3 3.6 5.5 13.9% 74.2 67.1 (billion ye
Slide 34: Sony Bank | Key Results Indicators
Sony Bank | Key Results Indicators Net Income and ROE (Consolidated, IFRS) Foreign Currency Deposits3 at the End of Period (Non-consolidated, J-GAAP) (billion yen) 614.7 657.0 501.1 : Net Income :1H Total Adjusted Net Income :2H Total End of FY22 End of FY23 End of FY24 Q2 : Adjusted ROE 10.6% (bill
Slide 35: Appendix | Group Synergies
Appendix | Group Synergies
Slide 36: Synergies through Collaboration within SFG
Synergies through Collaboration within SFG Number of Auto Insurance Sales by Lifeplanner sales specialists Mortgage Loan Balance by Lifeplanner sales specialists (signed contract basis) : Percentage of the number of auto insurance sales : Percentage of the mortgage loan balance by Lifeplanner sales
Slide 37: Appendix | Definition of Targets, Adjusted Net Income and Adjusted ROE
Appendix | Definition of Targets, Adjusted Net Income and Adjusted ROE
Slide 38: Targets and Shareholder Return Policy
Targets and Shareholder Return Policy 120 billion yen (FY26) 10%+ (FY26) 165~235% Adjusted net income (IFRS 17 basis) Adjusted ROE (IFRS 17 basis) Group consolidated ESR (billion yen) 120.0 Consideration of additional risk- 10.0%+ taking, increasing shareholder returns, etc. if it exceeds 235% for a
Slide 39: Definitions of Adjusted Net Income and Adjusted ROE for SFGI
Definitions of Adjusted Net Income and Adjusted ROE for SFGI (after FY22) We decided to introduce “adjusted net income” and “adjusted ROE” as indicators to measure base earnings growth, excluding market fluctuations and one-time factors from net income SFG Consolidated SFGI consolidated net income
Slide 40: Reconciliations from Net Income to Adjusted Net Income (IFRS)
Reconciliations from Net Income to Adjusted Net Income (IFRS) (billion yen) FY22 FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Pre-tax net income (loss) (Operating Income) *1 139.2 80.0 47.1 51.8 54.5 15.7 77.3 26.1 30.0 65.7 Post-tax net income (loss) 99.7 58.2 34.6 35.3 38.5 10.7 55.0 19.8 21.5 46.7 SFG
Slide 41: Cautionary Statement
Cautionary Statement Statements made in this material with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limite