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Corporate Information Name Established April 1, 2004 Head offi ce 1-9-2, Otemachi, Chiyoda-ku, Business Management control of subsidiaries (life insurance companies, a non-life insurance company, a bank and others) specifi ed by the Insurance Business Act of Japan and the Banking Act of Japan and all duties incidental to that role. Number of employees SFH: 74 (Consolidated: 9,739, Life insurance : 7,861, Non-life insurance : 1,201, Banking : 573, Parent: 49) 19,900 Note: The number of employees of SFH includes 10 belonging to the life insurance, 1 belonging to the non-life insurance, 8 belonging to the banking, and 55 belonging to the parent. Organizational Chart General Meeting of Shareholders Board of Directors Executive Committee Board of Statutory Auditors Statutory Auditors Audit Business Execution s Corporate Planning Corporate Communications & Investor Relations Risk Management Compliance Accounting Human Resources General Affairs Financial Market Research Sony Financial Group Organizational Chart of Business Operations (Primary Businesses) Sony Corporation Non-life Insurance Business Sony Assurance Inc. Sony Bank Inc. AEGON SA Reinsurance Ltd. Sony Payment Services Inc. Consolidated subsidiaries Affiliate accounted for by the equity method Sales of and referrals to other Group companies products Shareholding SmartLink Network Hong Kong Limited Note: Information for each is based on SFH s classifi cation of segments. In addition to the segments noted above, Sony Lifecare Inc., a holding company which oversees the nursing care, and Lifecare Design Inc., a nursing care, are included in the scope of consolidation. Annual Report 2017 83
Profiles of Group Companies (As of July 10, 2017) August 10, 1979 1-9-2, Otemachi, Chiyoda-ku, Life insurance 70,000 AEGON Sony Life Insurance Co., Ltd. August 29, 2007 5-52-2, Jingumae, Life insurance 15,000 AEGON International B.V. SA Reinsurance Ltd. October 29, 2009 British Bermuda Reinsurance 15,900 AEGON International B.V. Non-life Insurance Business Sony Assurance Inc. June 10, 1998 5-37-1, Kamata, Ota-ku, Non-life insurance 20,000 Sony Bank Inc. April 2, 2001 3-26, Kanda-Nishikicho, Chiyoda-ku, Banking 31,000 Sony Payment Services Inc. September 1, 2006 1-3-13, Takanawa, Minato-ku, Credit card settlement services 488 Sony Bank Inc. 57%, 4 other companies SmartLink Network Hong Kong Limited February 27, 2013 Hong Kong, China Credit card settlement services 13 Sony Payment Services Inc. Other (Nursing Care Business) Sony Lifecare Inc. April 1, 2014 3-11-11, Shibuya, Management control of companies handling the nursing care, and other duties incidental to that role 2,625 Lifecare Design Inc. October 5, 1999 3-11-11, Shibuya, 1,045 Sony Lifecare Inc. Yuuai Holdings Co., Ltd. April 5, 2012 Management control of companies handling the nursing care, and other duties incidental to that role 1,010 Sony Lifecare Inc. Kabushiki Kaisha Yuuai May 9, 2002 10 Yuuai Holdings Co., Ltd. Kabushiki Kaisha Manyou July 3, 2006 3 Yuuai Holdings Co., Ltd. 84 Annual Report 2017
Stock Information Information on Stock, Shares Outstanding Increase in Stock Increase in Capital Surplus Date Increase in Issued Shares Total Number of Shares Issued Stock Capital Surplus April 1, 2004 (Note 2) 2,000,000 2,000,000 500 500 175,877 175,877 June 25, 2004 (Note 3) 100,000 2,100,000 5,000 5,500 5,000 180,877 October 10, 2007 (Note 4) 75,000 2,175,000 14,400 19,900 14,400 195,277 March 31, 2011 2,175,000 19,900 195,277 April 1, 2011 (Note 5) 432,825,000 435,000,000 19,900 195,277 Notes: 1. The shares outstanding listed above are all common with full voting rights and no restrictions, which are the standard shares of SFH. 2. Issued due to the Company s establishment. 3. Issued in a private placement of 100,000 shares (0.05 shares for each share) to shareholders for an issue price of 100,000 per share. The amount added to common was 50,000 per share. 4. Issued in a general book-building offering for an issue price of 400,000 per share and an underwriting price (the amount paid) of 384,000 per share. The amount added to common was 192,000 per share and the total amount paid was 28.8 billion. 5. Issued due to a 200-for-1 split, with an effective date of April 1, 2011. Furthermore, the share unit system was adopted, whereby 100 shares constitute one unit. Stock Exchange Listing The First Section of the Tokyo Stock Exchange (Securities code: 8729) Major Shareholders Name Number of Shares Held Percentage of Ownership (%) Sony Corporation 274,050,000 63.00 Japan Trustee Services Bank, Ltd. (Trust Account) 13,637,337 3.13 The Master Trust Bank of Japan, Ltd. (Trust Account) 11,376,700 2.61 STATE STREET BANK AND TRUST COMPANY 7,946,518 1.82 Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account) 4,267,600 0.98 Japan Trustee Services Bank, Ltd. (Trust Account 5) 3,473,100 0.79 BBH FOR FIDELITY LOW-PRICED STOCK FUND (PRINCIPAL ALL SECTOR SUBPORTFOLIO) 2,784,500 0.64 Japan Trustee Services Bank, Ltd. (Trust Account 9) 2,715,800 0.62 Trust & Custody Services Bank, Ltd. (Investment Trust Collateral Account) 2,698,105 0.62 THE BANK OF NEW YORK 133972 2,624,200 0.60 Distribution of Share Ownership By shareholder type Financial instruments firms 1.87% Total number of shares issued 435,000,000 Foreign investors 18.79% Financial institutions 13.18% Corporations 63.13% Individuals and others 3.03% Annual Report 2017 85
Dividend Policy Dividends FY2013 FY2014 FY2015 FY2016 FY2017 (Forecast) Profi t Attributable to Owners of the Parent 40.5 billion 54.4 billion 43.3 billion 41.6 billion 42.0 billion Net Income per Share 93.11 125.10 99.67 95.69 96.56 Dividend per Share 30 40 55 55 55 (Reference) Dividend Payout Ratio 32.2% 32.0% 55.2% 57.5% 57.0% Basic Policy on Returning Profits to Shareholders SFH aims for steady increases in dividends in line with earnings growth over the medium to long term, while securing suffi cient internal reserves to ensure the fi nancial soundness of Group companies and to invest in growth fi elds. Management will examine earnings growth over the medium to long term by taking into account not only statutory profi t but also other economic value-based profi t indicators that are more suitable for valuing the growth of the life insurance. Furthermore, management will determine specifi c dividend amounts for each year by taking into account a comprehensive range of factors surrounding the Sony Financial Group. SFH pays dividends once a year as a year-end dividend. The Articles of Incorporation of SFH stipulate that it may also issue an interim dividend. In regard to the decision-making entities for the payment of dividends, the General Meeting of Shareholders decides the year-end dividend, while the Board of Directors decides the interim dividend. Dividends for the year ended March 31, 2017 were 55 per share (total amount of dividends: 23,922 ). This was approved by resolution of the Ordinary General Meeting of Shareholders held on June 21, 2017. For the year ending March 31, 2018, SFH forecasts dividends of 55 per share, unchanged from the amount for the previous period. The dividends based on the above Basic Policy on Returning Profi ts to Shareholders are expected to be or more of net income per share for the foreseeable future. Share Price Yen 2,500 2,000 1,500 1,000 500 0 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 2014 2015 2016 2017 3 4 5 6 Trading Volume Thousand shares 90,000 60,000 30,000 0 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 2014 2015 2016 2017 3 4 5 6 86 Annual Report 2017