Japanese

Text Size
  • S
  • M
  • L

Medium-term Business Plan

In May 31, 2018, we held a "FY2018 Sony Financial Group Corporate Strategy Meeting" and presented new Medium-term business plan for FY2020.

FY2018 Sony Financial Group Corporate Strategy Meeting

Date May 31, 2018
Presenter

Presentation Materials PDFPresentation Material (PDF 2.6MB)
PDFQAs(Summary) (PDF 112KB)
Online Presentation
(  Video)
Corporate Strategy Meeting

Sony Financial Group

Formulating the New Medium-term Plan: Theme and Points

<Theme>

    Using taking on the challenge of new growth as our theme, with the FY18–20 new medium-term plan we will make strategic moves from a long-term perspective to secure further growth by taking full advantage of changes that will occur 10 years or more from now and of organic growth from existing business models.

<Points>

Customer-First Further promote the customer-first business operation Respond to Changes
Establish a foundation that allows us to take full advantage of changes (technological advancements, social or regulatory changes, etc.) to secure further growth

Group’s Growth Strategy

Organic growth from existing businesses
  • Further enhance consulting-based sales and follow-ups and raise customer satisfaction
  • Sustainable growth in automobile insurance, diversify portfolios for types of non-life insurance
  • Strengthen foreign currency deposits and mortgage loans
  • Ensure steady post-startup progress of the Nursing Care Business

  • New Initiatives aimed at further growth
  • Utilize Fintech
  • Establish Investment subsidiary
  • Construct physical and digital channels, strengthen collaboration within the Group, and seek opportunities for M&A and alliances
  • FY20 Medium-term Target - Consolidated -

    Ordinary Revenues FY17 Actual &yen1.50 tn FY20 Mid-term target &yen1.76 tn Ordinary Profit FY17 Actual &yen66.8 bn FY20 Mid-term target &yen77 bn Profit attributable to owner of the parent FY17 Actual &yen51.8 bn FY20 Mid-term target &yen50 bn US-GAAP Operating Income FY17 Actual &yen178.9 bn FY20 Mid-term target &yen180 bn Consolidated Adjusted ROE FY17 Actual 6.1% FY20 Mid-term target Approx.7%

    *1 The figure for FY17 is rounded to the nearest ¥100 millions.
    The figure for FY20 includes expected changes in actuarial assumptions which is not affected by financial markets, and not included expected gains/losses on sale of securities according to the change of available-for-sale securities recognition, which are reported at fair value in the US GAAP from FY18 onward.

    *2 The figure for FY17 excludes the impact of a revision in the insurance risk measurement method and others for Sony Life

    Page Top

    Sony Life
    Key Message

    Customer-First
    Response to Changes
    Customer-First

    Further strengthen our business foundation

    • Pursue quality in the Lifeplanner channel
    • Achieve steady recovery in the independent agency channel
    Customer-First
    Response to Changes

    Provide new value

    • Expand coverage (new medical insurance)
    • Evolve customer-first service (Fintech)
    Customer-First

    Steadily grow corporate value

    • Realize growth in profit on the basis of economic value

    FY20 Medium-term Targets

    Policy amount in force FY17 Actual &yen47.2 tn FY20 Mid-term target &yen55 tn Number of Lifeplanners FY17 Actual 5,142 FY20 Mid-term target Over 5,700 MCEV FY17 Actual &yen1.6 tn FY20 Mid-term target Over &yen1.8 tn Core ROEV FY17 Actual 5.9% FY20 Mid-term target Over 6% Ordinary Profit (life insurance business) FY17 Actual &yen54.1 bn FY20 Mid-term target &yen62 bn

    *1 The figures include the number of contracted Lifeplanner sales employees and those rehired on a fixed-term contract basis after retirement

    *2 Figures in “FY20 Mid-tem target” are based on interest rate levels at the end of March 2018

    *3 The figure excludes the impact of a revision in the insurance risk measurement method and others

    Page Top

    Sony Assurance
    Key Message

    Customer-First
    Response to Changes
    Customer-First

    Continue to grow, and expand share of, automobile insurance

    • Increase peace of mind regarding direct insurance by enhancing product capabilities and service quality and conducting effective marketing; establish “strength as a trusted brand”
    • Enhance products, marketing and services using leading-edge technology
    Customer-First

    Expand business categories outside automobile insurance

    • Aim to establish a foundation for stable long-term earnings and promote categorical expansion
    • Medical insurance field: strengthen and expand products, respond to diverse needs
    • New fire insurance field: use strength in direct business to expand into new domains
    Customer-First
    Response to Changes

    Maximize customer value

    • Strengthen customer retention by improving the customer experience and offering high-quality services
    • Increase ability to acquire new policies by improving product and service specs to raise perceived quality
    Response to Changes

    Reform operations and improve operating efficiency

    • Track medium- to long-term changes in operating environment and utilize leading-edge technology to raise operating efficiency and heighten cost competitiveness
    • Reform operations and aim to improve ability to respond to customer needs through large-scale renovations to our core business systems

    FY20 Medium-term Targets

    Direct premiums written FY17 Actual &yen107.0 bn FY20 Mid-term target &yen120 bn Sum of two ratios FY17 Actual 89.2% FY20 Mid-term target 89% E.I loss ratio FY17 Actual 60.7% Net expense ratio FY17 Actual 28.5% Ordinary Profit FY17 Actual &yen6.5 bn FY20 Mid-term target &yen7 bn Adjusted ordinary profit FY17 Actual &yen10.0 bn FY20 Mid-term target &yen11 bn Adjusted ROE FY17 Actual 16.1% FY20 Mid-term target Approx. 13%

    * Adjusted ordinary profit = Ordinary profit + Provision for catastrophe reserve

    Page Top

    Sony Bank
    Key Message

    Customer-First
    Response to Changes
    Customer-First

    Increase product strength and improve service

    • Improve convenience of Sony Bank WALLET and expand tie-ups
    • Strengthen competitiveness of mortgage loans
    • Offer convenience through banking apps
    • Expand investment options through cloud banking
    Customer-First

    Improve proposal ability

    • Strengthen digital marketing
    • Implement digital consulting
    • Expand consulting, both over the internet and face to face
    Response to Changes

    Conduct operational reform and utilize Fintech

    • Begin using AI in provisional screening for mortgage loans
    • Promote alliances using open API
    • Improve operational efficiency through implementation of RPA

    FY20 Medium-term Targets (Consolidated)

    Retail balance (Non-consolidated) FY17 Actual &yen3.9 tn FY20 Mid-term target &yen5.0 tn Gross Operating Profit FY17 Actual &yen24.6 bn FY20 Mid-term target &yen33.5 bn Ordinary Profit FY17 Actual &yen7.1 bn FY20 Mid-term target &yen9.7 bn ROE FY17 Actual 5.5% FY20 Mid-term target 6.8% Reference:Sony Payment Services Consolidated sales FY17  Actual &yen3.6 bn FY20 Mid-term target &yen5.1 bn Ordinary profit FY17 Actual &yen0.6 bn FY20 Mid-term target &yen1.2 bn

    *1 Sum of yen deposits, foreign currency deposits, investment trusts, securities brokerage, mediate discretionary investment contracts and personal loans

    Page Top

    Sony Lifecare
    Key Message

    Customer-First
    Response to Changes
    Customer-First

    Establish SONARE brand

    • Establish SONARE brand via management of two existing homes and a third new home utilizing the two years of expertise
    • Develop homes with high earning capacity for the upper/middle zone while focusing on quality and customer satisfaction
    Customer-First

    Undertake initiatives to establish a business foundation in the volume zone and achieve growth

    • Improve new subsidiary Proud Life Inc.’s home management quality and stabilize our business foundation in the volume zone
    • Expand scale of operations and improve profitability through the Hanakotoba brand’s establishment of new homes
    Customer-First
    Response to Changes

    Implement new customer-first service value, “Life Focus”

    • Develop our service lineup with suitable service levels for each price range in accordance with our new customer-first value concept, “Life Focus,” and respond to diverse needs of the market
    • Create new “high-quality” value in the nursing care business through collaboration with Sony Financial Group and the Sony Group

    Page Top

    Sony Financial Group
    Shareholder Returns・Dividend Policy

    We aim for steady increases in dividends in line with earnings growth over the medium to long term, while securing sufficient internal reserves to ensure the financial soundness of Group companies and to invest in growth fields. Management will examine earnings growth over the medium to long term by placing more importance on economic value-based profit indicators that are more suitable for valuing the growth of the life insurance business, in addition to statutory profit. Furthermore, management will determine specific dividend amounts for each year by taking into accounts a comprehensive range of factors surrounding the Sony Financial Group.

    • For FY18, considering the business environment, growth of our group and the level of economic value-based profit growth, we forecast dividends of ¥62.5 per share, an increase of ¥2.5 from the planned dividends of ¥60 per share for FY17

    Trend on dividend per share

    *Although a stock split was conducted during FY11, the dividend per share figures for FY09 and FY10 are calculated assuming that the stock split was conducted at the beginning of FY09

    Page Top

    Disclaimers:

    Statements made in this website and in documents posted on this website 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 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 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, 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 website and in documents posted on this website 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.

    Please note that although Sony Financial Holdings and/or its subsidiaries have made careful efforts regarding the accuracy of the contents of this website and in documents posted on this website, Sony Financial Holdings and/or its subsidiaries assume no responsibility for problems including, but not limited to, incorrect information in such contents or documents or problems resulting from or in connection with downloading such contents or documents.