Interim report
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財 団 法人 中 会计 基康康 FASF CONSOLIDATED FINANCIAL SUMMARY FOR THE FIRST QUARTER ENDED JUNE 30 , 2026 ( In accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board ( " IFRS Accounting Standards " ) ) Company name Stock exchange listing Securities code URL Representative Contact Scheduled date to commence dividend payment : Sony Financial Group Inc. : Tokyo Stock Exchange : 8729 : https://www.sonyfg.co.jp/index_en.html August 10 , 2026 : Toshihide Endo , Representative Corporate Executive Officer : Takumi Sai , Executive Officer : - Preparation of supplementary materials on financial results : Yes Holding of financial results briefing : Yes ( for investors and analysts ) Three months ended June 30 , 2026 June 30 , 2025 Millions of yen 268,033 242,622 % 10.5 Operating profit ( loss ) Millions of yen ( Amounts of less than one million yen are truncated . ) 1. Consolidated Financial Highlights for the Three Months Ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) Operating revenues ( Percentages indicate year on year changes . ) Profit ( loss ) attributable to owners % Profit ( loss ) before income taxes Millions of yen Comprehensive % of the parent Millions of yen % income ( loss ) Millions of yen % 15,228 ( 33,552 ) 13,723 ( 34,105 ) 9,160 ( 24,492 ) ( 5,959 ) 28,987 Adjusted net income * Basic earnings ( loss ) Diluted earnings per share ( loss ) per share Three months ended June 30 , 2026 Millions of yen 31,503 21,943 % 43.6 Yen Yen 1.37 ( 3.43 ) 1.37 ( 3.43 ) June 30 , 2025 Note : On August 8 , 2025 , Sony Financial Group Inc. ( the “ Company ” ) conducted a 7,149,358,214 - for - 435,100,266 stock split of its common stock . The above figures of basic earnings ( loss ) per share and diluted earnings ( loss ) per share are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31 , 2026 . ( 2 ) Consolidated financial position As of June 30 , 2026 March 31 , 2026 2. Dividends Fiscal year ended March 31 , 2026 Fiscal year ending March 31 , 2027 Fiscal year ending March 31 , 2027 ( Forecast ) Total Assets Total equity Millions of yen 21,787,284 20,775,505 Millions of yen 876,199 907,675 Equity attributable to owners of the parent Millions of yen 876,175 907,651 Annual dividends per share Ratio of equity attributable to owners of the parent % 4.0 4.4 First quarter - end Second quarter - end Third quarter - end Year - end Total Yen Yen Yen Yen Yen 3.80 3.80 4.00 Note : Revisions to the forecast of dividends most recently announced : No 4.00 8.00
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3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2027 (from April 1, 2026 to March 31, 2027) (Percentages indicate year on year changes.) Operating revenues Operating profit (loss) Profit (loss) before income taxes Profit (loss) attributable to owners of the parent Adjusted net income* Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % For the year ending March 31, 2027 1,070,000 5.2 29,000 － 37,000 － 23,000 － 110,000 2.4 Note: Revisions to the forecast of consolidated results for the fiscal year ending March 31, 2027 most recently announced: Yes * The adjusted net income excludes the impact of temporary gains and losses. The Company considers this metric to represent businesses’ sustainable earning power and to facilitate assessment, from a management-level perspective, of long-term business expansion through the cycle of investments and returns across the entire group. While the adjusted net income is not presented in accordance wi th IFRS Accounting Standards, the Company believes that these disclosures provide useful information to investors. For the calculation formula and reconciliations for adjusted net income, please refer to “Q1 FY2026 Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the website of the Company.
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* Notes (1) Significant changes in the scope of consolidation during the period : None (2) Changes in accounting policies and accounting estimates: (i) Changes in accounting policies required by IFRS Accounting Standards : None (ii) Changes in accounting policies due to other reasons : None (iii) Changes in accounting estimates : None (3) Number of issued shares (common stock): 1. Total number of issued shares at the end of the period (including treasury stock) As of June 30, 2026: 6,770,358,214 shares As of March 31, 2026: 6,770,358,214 shares 2. Number of shares of treasury stock at the end of the period As of June 30, 2026: 61,912,091 shares As of March 31, 2026: 61,911,026 shares 3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Three months ended June 30, 2026: 6,708,446,322 shares Three months ended June 30, 2025: 7,149,358,214 shares Notes: 1. The Company conducted a 7,149,358,214-for-435,100,266 stock split of its common stock on August 8, 2025. The above figures for the number of issued shares (common stock) are calculated on the assumption that the stock split had been conducted at the beginning of the fiscal year ended March 31, 2026. 2. The number of treasury stock deducted in calculating the number of treasury stock at the end of the period and the average number of shares outstanding during the period includes the Company’s shares held by the share‑granting ESOP trust. * Review of the Japanese-language originals of the attached condensed quarterly consolidated financial statements by certified public accountants or an audit firm: Yes (voluntary) * Proper use of earnings forecasts, and other special matters: With the objectives of enhancing international comparability of financial information in the capital markets and providing management indicators aligned with Sony FG's long-term management perspective, Sony FG has voluntarily adopted IFRS Accounting Standa rds in place of Japanese GAAP from the first quarter of fiscal year 2026 (the fiscal year ending March 31, 2027). Forward-looking statements made in this document, including earnings forecasts, are based on information currently available and certain assumptions which are deemed rational by the Company. The Company offers no assurance that these statements will be realized. Actual results may differ substantially due to various factors.
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1 Table of Contents for Appendix 1. Overview of Operating Results……………………………………………………………………………… 2 (1) Overview of Operating Results… ……………………………………………………………………… 2 (2) Overview of Financial Position ………………………………………………………………………… 2 2. Condensed Quarterly Consolidated Financial Statements………………………………………………… 3 (1) Condensed Quarterly Consolidated Statements of Financial Position………………………………… 3 (2) Condensed Quarterly Consolidated Statements of Income……………………………………………… 4 (3) Condensed Quarterly Consolidated Statements of Comprehensive Income…………………………… 5 (4) Condensed Quarterly Consolidated Statements of Changes in Equity…………………………………… 6 (Going Concern Assumption)……………………………………………………………………………… 8 (Basis of Preparation)…………………………………………………………………………………… 8 (Management-defined Performance Measure)…………………………………………………………… 9 (Business Segment Information)………………………………………………………………………… 12 (Notes to Consolidated Statements of Cash Flows)……………………………………………………… 13 (Financial Instruments - Classifications and Fair Value)………………………………………………… 14 (Insurance Revenue)……………………………………………………………………………………… 21 (Financial Result of the Insurance Business)……………………………………………………………… 22 (Insurance and Reinsurance Contracts)…………………………………………………………………… 23 (Subsequent Events)……………………………………………………………………………………… 40
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2 1. Overview of Operating Results (1) Overview of Operating Results The results of Sony Financial Group (“Sony FG”) for the three months ended June 30, 2026 are as follows. Consolidated profit before income taxes was ¥13.7 billion, compared to a loss before income taxes of ¥34.1 billion, during the same period of the previous fiscal year, due to an increase in profit before income taxes from the life insurance, the non-life insurance and the banking businesses. Profit attributable to owners of the parent was ¥9.1 billion, compared to a los s attributable to owners of the parent of ¥24.4 billion during the same period of the previous fiscal year. Profit (loss) before income taxes by business segment is as described below. (Billions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 YoY change Profit (loss) before income taxes (34.1) 13.7 +47.8 － Life insurance business (41.1) 1.6 +42.8 － Non-life insurance business 4.8 6.8 +2.0 +42.0 % Banking business 2.7 6.0 +3.2 +117.0 % Life insurance business: Profit before income taxes was ¥1.6 billion, compared to a loss before income taxes of ¥41.1 billion in the same period of the previous fiscal year, due to a decrease in losses on sales of bonds for rebalancing purposes based on the ALM (asset-liability management) approach, despite a deterioration in gains and losses resulting from market fluctuations associated with minimum guarantees on variable life insurance and other products. Non-life insurance business: Profit before income taxes increased by 42.0% year on year, to ¥6.8 billion, due to the positive impact of revenue growth, together with effective expense control. Banking business: Profit before income taxes increased by 117.0% year on year, to ¥6.0 billion, due to an increase in net interest income, despite an increase in operating expenses, mainly advertising expenses. (2) Overview of Financial Position As of June 30, 2026, total assets amounted to ¥21,787.2 billion, an increase of 4.9% from March 31, 2026. Major components of assets included securities of ¥15,923.6 billion, an increase of 4.9%, and loans of ¥3,671.2 billion, a decrease of 0.7% from March 31, 2026. Total liabilities were ¥20,911.0 billion, an increase of 5.3% from March 31, 2026. Major components of liabilities included insurance contract liabilities of ¥13,450.5 billion, an increase of 5.5%, and deposits in the banking business of ¥4,620.1 billion, an increase of 0.4% from March 31, 2026. Total equity amounted to ¥876.1 billion, a decrease of 3.5% from March 31, 2026.
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3 2. Condensed Quarterly Consolidated Financial Statements (1) Condensed Quarterly Consolidated Statements of Financial Position (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Cash and cash equivalents 483,463 644,957 Derivative assets 231,032 266,001 Other financial assets 524,361 504,161 Securities 15,184,147 15,923,692 Insurance contract assets 45,128 44,066 Reinsurance contract assets 274,892 379,429 Loans 3,695,766 3,671,262 Investments in associates 3,242 3,508 Tangible fixed assets 14,067 14,111 Investment property 73,977 73,662 Right-of-use assets 74,739 79,691 Intangible assets 81,528 81,201 Goodwill 10,834 10,834 Deferred tax assets 64,016 67,571 Other assets 14,307 23,133 Total assets 20,775,505 21,787,284 Liabilities Deposits in the banking business 4,600,113 4,620,117 Call money 175,094 189,716 Payables under repurchase agreements 395,306 625,579 Collateral for securities lending transactions 654,797 700,941 Derivative liabilities 50,231 66,750 Other financial liabilities 160,342 180,886 Current tax liabilities 12,399 5,291 Insurance contract liabilities 12,749,724 13,450,597 Reinsurance contract liabilities 126 111 Investment contract liabilities 58,847 59,854 Bonds payable and borrowed money 837,295 833,804 Lease liabilities 86,192 91,134 Defined benefit liabilities 37,047 37,261 Deferred tax liabilities 2,524 2,543 Other liabilities 47,785 46,495 Total liabilities 19,867,829 20,911,085 Equity Capital stock 20,029 20,029 Capital surplus 136,732 136,826 Retained earnings 2,261,857 2,245,334 Treasury stock (9,822) (9,822) Accumulated other comprehensive income (1,501,145) (1,516,191) Equity attributable to owners of the parent 907,651 876,175 Non-controlling interests 24 24 Total equity 907,675 876,199 Total liabilities and equity 20,775,505 21,787,284
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4 (2) Condensed Quarterly Consolidated Statements of Income (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Insurance revenue 162,723 178,005 Insurance service expenses (116,308) (129,932) Net expenses from reinsurance contracts (572) (301) Insurance service result 45,842 47,771 Fee and commission income 1,480 1,743 Fee and commission expense (2,715) (3,060) Net fee and commission income (1,234) (1,316) Interest income 69,477 78,607 Interest expenses (21,227) (19,666) Net interest income 48,249 58,941 Investment gains and losses (32,019) 672,198 Impairment loss on financial assets 54 (25) Insurance finance gains and losses, net (76,208) (750,701) Reinsurance finance gains and losses, net 30 8,811 Insurance finance gains and losses (76,177) (741,889) Finance result (59,894) (10,774) Selling, general, and administrative expenses (26,442) (29,227) Other operating revenue 9,156 9,677 Other operating expenses (980) (901) Operating profit (loss) (33,552) 15,228 Share of profit (loss) of investments accounted for using the equity method (3) (796) Profit (loss) before financing and income taxes (33,556) 14,431 Financing expenses (549) (707) Profit (loss) before income taxes (34,105) 13,723 Income tax expense 9,613 (4,563) Profit (loss) (24,492) 9,160 Profit (loss) attributable to Owners of the parent (24,492) 9,160 Non-controlling interests － (0) Earnings (loss) per share Basic earnings (loss) per share (3.43) yen 1.37 yen Diluted earnings (loss) per share (3.43) yen 1.37 yen
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5 (3) Condensed Quarterly Consolidated Statements of Comprehensive Income (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit (loss) (24,492) 9,160 Other comprehensive income, Items that will not be reclassified to profit (loss) Remeasurement of defined benefit pension plans (51) (74) Changes in equity instruments measured at fair value through other comprehensive income 35 152 Total (16) 78 Items that may be reclassified subsequently to profit (loss) Changes in debt instruments measured at fair value through other comprehensive income (132,899) (106,681) Cash flow hedges － 5 Insurance finance gains and losses, net 186,485 93,201 Reinsurance finance gains and losses, net (89) (1,723) Total 53,496 (15,198) Total other comprehensive income (loss) 53,479 (15,120) Comprehensive income (loss) 28,987 (5,959) Comprehensive income (loss) attributable to Owners of the parent 28,987 (5,959) Non-controlling interests － (0)
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6 (4) Condensed Quarterly Consolidated Statements of Changes in Equity (Millions of yen) For the three months ended June 30, 2025 Capital stock Capital surplus Retained earnings Accumulated other comprehensive income (losses) Remeasurement of defined benefit pension plans Changes in equity instruments measured at fair value through other comprehensive income Balance at the beginning of current period 20,029 196,394 2,270,354 － (4,946) Comprehensive income (loss) Profit (loss) － － (24,492) － － Other comprehensive income (loss) － － － (51) 35 Total comprehensive income (loss) － － (24,492) (51) 35 Transfer to retained earnings － － (51) 51 － Stock-based compensation － 97 － － － Other － － － － － Total － 97 (24,543) － 35 Balance at the end of current period 20,029 196,492 2,245,810 － (4,911) For the three months ended June 30, 2025 Accumulated other comprehensive income (losses) Equity attributable to owners of the parent Total equity Changes in debt instruments measured at fair value through other comprehensive income Insurance finance gains and losses, net Reinsurance finance gains and losses, net Accumulated other comprehensive income (losses) Balance at the beginning of current period (1,346,457) (60,877) (766) (1,413,047) 1,073,730 1,073,730 Comprehensive income (loss) Profit (loss) － － － － (24,492) (24,492) Other comprehensive income (loss) (132,899) 186,485 (89) 53,479 53,479 53,479 Total comprehensive income (loss) (132,899) 186,485 (89) 53,479 28,987 28,987 Transfer to retained earnings － － － 51 － － Stock-based compensation － － － － 97 97 Other － － － － － － Total (132,899) 186,485 (89) 53,531 29,085 29,085 Balance at the end of current period (1,479,357) 125,607 (855) (1,359,516) 1,102,815 1,102,815
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7 (Millions of yen) For the three months ended June 30, 2026 Capital stock Capital surplus Retained earnings Treasury stock Accumulated other comprehensive income (losses) Remeasurement of defined benefit pension plans Changes in equity instruments measured at fair value through other comprehensive income Changes in debt instruments measured at fair value through other comprehensive income Balance at the beginning of current period 20,029 136,732 2,261,857 (9,822) － (2,688) (2,037,121) Comprehensive income (loss) Profit － － 9,160 － － － － Other comprehensive income (loss) － － － － (74) 152 (106,681) Total comprehensive income (loss) － － 9,160 － (74) 152 (106,681) Acquisition of treasury stocks － － － (0) － － － Dividends declared － － (25,609) － － － － Transfer to retained earnings － － (74) － 74 － － Stock-based compensation － 93 － － － － － Other － － － － － － － Total － 93 (16,523) (0) － 152 (106,681) Balance at the end of current period 20,029 136,826 2,245,334 (9,822) － (2,535) (2,143,802) For the three months ended June 30, 2026 Accumulated other comprehensive income (losses) Equity attributable to owners of the parent Non-controlling interests Total equity Cash flow hedges Insurance finance gains and losses, net Reinsurance finance gains and losses, net Accumulated other comprehensive income (losses) Balance at the beginning of current period － 544,695 (6,031) (1,501,145) 907,651 24 907,675 Comprehensive income (loss) Profit － － － － 9,160 (0) 9,160 Other comprehensive income (loss) 5 93,201 (1,723) (15,120) (15,120) － (15,120) Total comprehensive income (loss) 5 93,201 (1,723) (15,120) (5,959) (0) (5,959) Acquisition of treasury stocks － － － － (0) － (0) Dividends declared － － － － (25,609) － (25,609) Transfer to retained earnings － － － 74 － － － Stock-based compensation － － － － 93 － 93 Other － － － － － － － Total 5 93,201 (1,723) (15,045) (31,476) (0) (31,476) Balance at the end of current period 5 637,896 (7,754) (1,516,191) 876,175 24 876,199
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8 (Going Concern Assumption) Not applicable. (Basis of Preparation) (1) Framework for financial reporting The condensed quarterly consolidated financial statements are prepared in accordance with Article 5, Paragraph 2 of the Preparation Standards for Quarterly Financial Statements, etc. of Tokyo Stock Exchange, Inc., with certain disclosures omitted pursuant to Paragraph 5 of the same Article. Certain disclosure requirements and notes prescribed by IAS 34 “Interim Financial Reporting” have been omitted. Sony FG's date of transition to IFRS Accounting Standards was April 1, 2024. Accordingly, the adoption of IFRS Accounting Standards does not constitute a first -time adoption as defined in IFRS 1, First -time Adoption of International Financial Reporting Standards. Therefore, the reconciliations from Japanese GAAP to IFRS Accounting Standards that are required by IFRS 1 upon first-time adoption have not been prepared. (2) Early adoption of new standards Sony FG has early adopted IFRS 18 “Presentation and Disclosure in Financial Statement” (issued in April 2024).
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9 (Management-defined Performance Measure) (1) Overview of management-defined performance measure Sony FG has adopted “Adjusted Net Income,” a management -defined performance measure, as a key management indicator, and uses it in business briefings and other investor presentations. “Adjusted Net Income” is calculated by adjusting net income for the period as defined under IFRS Accounting Standards to exclude the effects of market fluctuations and other non-recurring or temporary factors, in order to enable management to assess Sony FG’s sustainable earning power and operating performance and to provide investors with management’s perspective. Management believes that “Adjusted Net Income” appropriately represents Sony FG’s underlying period earnings and is suitable for measuring base profit growth, and therefore has adopted it as a management performance measure. Accordingly, management considers that the disclosure of “Adjusted Net Income” provides useful information to users of the financial statements. Specifically, in calculating “Adjusted Net Income,” Sony FG adjusts net income for the period as defined under IFRS Accountin g Standards for the following income and expense items. (ⅰ) Gains and losses recognized by the life insurance subsidiary The following items recognized by the life insurance subsidiary are adjusted: • Variable insurance-related gains and losses recognized in investment income, arising from financial assets measured at fair value through profit or loss held to back variable insurance contracts and variable annuity contracts. • Foreign exchange gains and losses recognized in investment income, excluding amounts equivalent to hedge costs (including transaction fees and margin costs necessary to maintain hedge positions), arising from bonds designated as measured at fair value through profit or loss, including accrued interest for the current period based on the interest rate at the beginning of the period. • Valuation gains and losses on ALM-related hedge transactions recognized in investment income, excluding amounts equivalent to hedge costs (including transaction fees and margin costs necessary to maintain hedge positions). • Variable insurance-related gains and losses included in insurance finance income or expenses, arising from changes in underlying items related to variable insurance contracts and variable annuity contracts, as well as the effects of changes in interest rates and other financial risks. • Foreign exchange gains and losses included in insurance finance income or expenses. • Gains and losses on the sale of securities recognized in investment income. Management of Sony FG considers that variable insurance-related gains and losses, which ultimately accrue to policyholders, as well as gains and losses arising from market risk adjustments in the insurance business, temporary gains and losses on the sa le of securities resulting from market fluctuations, and gains and losses arising from hedging transactions against interest rate , foreign exchange and other risks, do not reflect Sony FG’s sustainable earning power or operating performance. The life insurance subsidiary has a policy of hedging interest rate, foreign exchange and other risks associated with debt financial instruments held from an (ALM) perspective through the use of interest rate swaps, currency swaps, bond futures and other instruments. However, as the amount of valuation gains and losses arising from accounting mismatches associated with the expansion of such hedge transactions is expected to become increasingly significant to net income for the period as defined under IFRS Accounting Standards, Sony FG has added valuation gains and losses on ALM -related hedge transactions recognized in investment income, excluding amounts equivalent to hedge costs, to the adjustment items used in calculating “Adjusted Net Income” from the first quarter of the current fiscal year. (ⅱ) Non-recurring gains and losses recognized by entities within Sony FG Non-recurring gains and losses arising from temporary factors that are not expected to occur over multiple consolidated fiscal years and are not directly related to Sony FG’s medium - to long-term business plans are considered not to reflect Sony FG’s sustainable earning power or operating performance. Management also believes that such items have limited predictive value for users of the financial statements in assessing Sony FG’s future performance. It should be noted that “Adjusted Net Income” does not correspond to any subtotal of income or expenses defined under IFRS Accounting Standards and is a performance measure unique to Sony FG. Accordingly, it may not be comparable to similarly
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10 titled performance measures used or disclosed by other companies.
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11 (2) Reconciliation to management-defined performance measure The reconciliation from profit (loss) for the period as defined under IFRS to management -defined performance measures is as follows. (Millions of yen) Line items in the consolidated statements of income For the three months ended June 30, 2025 Before income taxes Income taxes* After income taxes Profit (loss) (34,105) 9,613 (24,492) (ⅰ) Adjustment items related to the life insurance subsidiary Variable insurance-related gains and losses and foreign exchange gains and losses Investment gains and losses (70,021) 20,481 (49,540) Valuation gains and losses on ALM hedging transactions Investment gains and losses 2,226 (651) 1,575 Gains and losses on the sale of securities Investment gains and losses 102,139 (29,875) 72,263 Variable insurance-related gains and losses and foreign exchange gains and losses Insurance finance income or expenses (net) 31,290 (9,152) 22,137 (ⅱ) Non-recurring gains and losses recognized by entities within Sony FG － － － Total adjustments 65,634 (19,198) 46,436 Adjusted Net Income 31,528 (9,585) 21,943 * Corporate income taxes related to adjustment items are calculated based on the effective tax rates applicable to each entity within Sony FG in which the relevant gains or losses subject to adjustment were recognized. (Millions of yen) Line items in the consolidated statements of income For the three months ended June 30, 2026 Before income taxes Income taxes* After income taxes Profit (loss) 13,723 (4,563) 9,160 (ⅰ) Adjustment items related to the life insurance subsidiary Variable insurance-related gains and losses and foreign exchange gains and losses Investment gains and losses (704,301) 217,488 (486,813) Valuation gains and losses on ALM hedging transactions Investment gains and losses 543 (167) 375 Gains and losses on the sale of securities Investment gains and losses 36,216 (11,183) 25,032 Variable insurance-related gains and losses and foreign exchange gains and losses Insurance finance income or expenses (net) 699,866 (216,118) 483,747 (ⅱ) Non-recurring gains and losses recognized by entities within Sony FG － － － Total adjustments 32,325 (9,982) 22,343 Adjusted Net Income 46,049 (14,545) 31,503 * Corporate income taxes related to adjustment items are calculated based on the effective tax rates applicable to each entity within Sony FG in which the relevant gains or losses subject to adjustment were recognized.
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12 (Business Segment Information) 1. Information on revenues, profit (loss) and assets by each reportable segment (Millions of yen) Three months ended June 30, 2025 Reportable segments Other*1 Adjustments Amounts in consolidated financial statements Life insurance business Non-life insurance business Banking business Total Segment revenues *2 External customers 169,968 42,678 25,722 238,369 4,252 － 242,622 Intersegment 787 9 7 805 － (805) － Total segment revenues 170,756 42,687 25,730 239,174 4,252 (805) 242,622 Segment profit (loss) (41,192) 4,859 2,765 (33,567) 151 (689) (34,105) *1 “Other” represents the nursing care business and the venture capital business, which are business segments not included in reportable segments. *2 Segment revenues consist of insurance revenue, fee and commission income, interest income and a portion of other operating revenue. (Millions of yen) Three months ended June 30, 2026 Reportable segments Other*1 Adjustments Amounts in consolidated financial statements Life insurance business Non-life insurance business Banking business Total Segment revenues *2 External customers 181,497 49,145 32,965 263,607 4,425 － 268,033 Intersegment 946 0 13 960 0 (961) － Total segment revenues 182,443 49,145 32,978 264,567 4,426 (961) 268,033 Segment profit (loss) 1,642 6,898 6,002 14,543 87 (907) 13,723 *1 “Other” represents the nursing care business and the venture capital business, which are business segments not included in reportable segments. *2 Segment revenues consist of insurance revenue, fee and commission income, interest income and a portion of other operating revenue. 2. Difference between total profit (loss) of reportable segments and amounts in the condensed quarterly consolidated statements of income and main details of these differences (matter relating to difference adjustment) (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Totals of reportable segments (33,567) 14,543 Other 151 87 Adjustments for intersegment transactions 5 (0) Amount not allocated to reportable segments* (695) (907) Profit (loss) before income taxes in the condensed quarterly consolidated statements of income (34,105) 13,723 * Mainly holding company profit or loss.
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13 (Notes to Consolidated Statements of Cash Flows) Condensed quarterly consolidated statements of cash flows have not been prepared for the three months ended June 30, 2025 and 2026. Depreciation and amortization for the three months ended June 30, 2025 and 2026 are as follows: (Millions of yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation and amortization 7,589 8,080
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14 (Financial Instruments - Classifications and Fair Value) The following table shows the carrying amounts of financial assets and liabilities. (Millions of yen) March 31, 2026 Mandatory at fair value through profit or loss (“FVPL”) Designated as at FVPL Fair value through other comprehensive income (“FVOCI”) Amortized cost (“AC”) Total carrying amounts Securities Debt securities Japanese national government bonds 370,325 578,025 5,254,944 － 6,203,295 Japanese local government bonds 3,749 － 167,029 29,711 200,491 Japanese corporate bonds 43,958 － 748,680 52,485 845,124 Foreign government bonds 215,865 50,378 1,401,972 － 1,668,215 Foreign corporate bonds 42,096 56,879 492,863 － 591,839 Securitized products － － 223,853 479,841 703,694 Other Securities 993,535 － － 26,508 1,020,044 Equity securities Japanese equities 571,991 － 2,300 － 574,292 Foreign equities 3,368,736 － 8,412 － 3,377,149 Loans Housing loans － － － 3,650,595 3,650,595 Other － － － 45,170 45,170 Derivative assets 231,032 － － － 231,032 Total financial assets 5,841,291 685,283 8,300,057 4,284,313 19,110,946 Deposits in the banking business － － － 4,600,113 4,600,113 Derivative liabilities 50,231 － － － 50,231 Investment contract liabilities － － － 58,847 58,847 Bonds payable － － － 179,748 179,748 Borrowed money － － － 657,547 657,547 Total financial liabilities 50,231 － － 5,496,256 5,546,487
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15 (Millions of yen) June 30, 2026 Mandatory at FVPL Designated as at FVPL FVOCI AC Total carrying amounts Securities Debt securities Japanese national government bonds 363,775 489,756 5,040,065 － 5,893,597 Japanese local government bonds 4,960 － 202,236 42,151 249,348 Japanese corporate bonds 44,894 － 733,478 51,882 830,254 Foreign government bonds 212,017 34,766 1,449,084 － 1,695,868 Foreign corporate bonds 59,483 51,372 538,200 － 649,057 Securitized products 4,212 － 240,868 516,860 761,940 Other Securities 1,277,147 － － 26,198 1,303,346 Equity securities Japanese equities 812,910 － 2,139 － 815,050 Foreign equities 3,716,255 － 8,973 － 3,725,228 Loans Housing loans － － － 3,623,745 3,623,745 Other － － － 47,516 47,516 Derivative assets 266,001 － － － 266,001 Total financial assets 6,761,658 575,895 8,215,046 4,308,355 19,860,956 Deposits in the banking business － － － 4,620,117 4,620,117 Derivative liabilities 66,750 － － － 66,750 Investment contract liabilities － － － 59,854 59,854 Bonds payable － － － 179,787 179,787 Borrowed money － － － 654,017 654,017 Total financial liabilities 66,750 － － 5,513,776 5,580,526
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16 (1) Fair value measurement framework Sony FG measures fair value as an exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Sony FG determines a hierarchy of inputs to valuation techniques based on the extent to which inputs used in measuring fair value are observable in the market. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect assumptions which Sony FG develops using the information that market participants would use in pricing the asset or liability. Observable market data is utilized when available, provided it can be obtained without undue cost or effort. Each fair value measurement is reported in on e of three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. Fair value measurements are categorized into the following three levels based on the inputs used in the valuation techniques: Level 1: Inputs are unadjusted quoted prices for identical assets and liabilities in active markets. Level 2: Inputs are based on observable inputs other than Level 1 prices, such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model -derived valuations, in which all significant inputs are observable in active markets. Level 3: One or more significant inputs are unobservable. (2) Description of the fair value measurement process Sony FG has established policies and procedures for fair value measurement within its risk management department, and fair value is measured in accordance with these policies. The measured fair values are validated by an independent valuation department, which assesses the appropriateness of the valuation techniques and inputs used, as well as the classification within the fair value hierarchy. The results of this validation are reported to the risk management department each reporting period to ensure the integrity of the fair value measurement policies and procedures. In measuring fair value, Sony FG uses valuation models that best reflect the nature, characteristics, and risks of each indiv idual asset. Even when market prices obtained from third parties are used, Sony FG verifies the reasonableness of such prices throu gh appropriate methods, including reviewing the valuation techniques and inputs used, and comparing them with the fair values of similar financial instruments.
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17 (3) Valuation techniques and inputs used for fair value measurement The following section describes the valuation techniques used by Sony FG to measure financial instruments at fair value, and the fair value hierarchy levels in which these instruments are generally classified. (ⅰ) Debt and equity securities: Where quoted prices of financial instruments are available in an active market, these instruments are classified in Level 1 of the fair value hierarchy. Level 1 financial instruments include exchange-traded equity instruments. If quoted market prices are n ot available for the specific financial instruments or the market is inactive, then fair values are estimated by using pricing m odels, quoted prices of financial instruments with similar characteristics or discounted cash flow method and mainly classified in Level 2 of the fair value hierarchy. Level 2 financial instruments include debt instruments with quoted prices that are not traded as actively as exchange-traded instruments, such as the majority of government bonds and corporate bonds. In certain cases where there is limited activity or less transparency around inputs to the valuation, these instruments are classified within Level 3 of the fair value hierarchy. Level 3 financial instruments primarily include investment funds, securitized products which are not classified within Level 1 or Level 2 and domestic and foreign corporate bonds for which quoted prices are not available in a market and where there is less transparency around inputs. Sony FG estimates the fair value for certain investment funds by using the net asset value. Sony FG estimates the fair value for securitized products and domestic and foreign corporate bonds for which quoted prices are not available in a market and where there is less transparency around inputs by using third -party information such as indicative quotes from dealers without adjustment or discounted cash flow method. For validating the fair values of Level 3 financial instruments, Sony FG primarily uses internal models which include management judgment or estimation of assumptions that market participants would use in pricing the asset. (ⅱ) Loans For each maturity category, the fair value of loans is determined by estimating future cash flows and discounting them at market interest rates as of the valuation date, adjusted as appropriate. These loans are classified as Level 3 in the fair value hierarchy. (ⅲ) Derivatives Exchange-traded derivatives valued using quoted prices are classified within Level 1 of the fair value hierarchy. However, few classes of derivative contracts are listed on an exchange; thus, the majority of Sony FG’s derivative positions are valued us ing internally developed models that use as their basis readily observable market parameters, meaning parameters that are activel y quoted and can be validated to external sources, including pricing services. In determining the fair value of Sony FG’s interest rate swap derivatives and currency swaps, Sony FG uses the present value of expected cash flows based on market observable interest rate yield curves commensurate with the term of each instrument. For foreign currency derivatives, Sony FG’s approach is to use forward contract valuation models employing market observable inputs, such as spot currency rates and time value. These derivatives are classified within Level 2 since Sony FG primarily u ses observable inputs in its valuation of its derivative assets and liabilities. Depending on the types and contractual terms of derivatives, fair value can be modeled using a series of techniques, such as the Black-Scholes model, which are consistently applied. For derivative products that have been established for some time, Sony FG uses models that are widely accepted in the financial services industry. These models reflect the contractual terms of the derivatives, including the period to maturity, and market-based parameters such as interest rates, volatility, and the credit rating of the counterparty. Further, many of these models do not contain a high level of subjectivity as the techniques used in the models do not require significant judgment, and inputs to the model are readily observable from actively quoted markets. Such instruments are generally classified within Level 2 of the fair value hierarchy. (ⅳ) Investment contract liabilities The present value of the estimated future cash flows of investment contracts, discounted at the market interest rate on the valuation date, is used as the fair value, and is classified as Level 2.
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18 (ⅴ) Deposits in the banking business For demand deposits, the amount payable (carrying amounts) if the demand is made at the reporting date is deemed to be the fair value. The fair value of time deposits is the present value of future cash flows discounted at the market interest rate on the valuation date. These transactions are classified as Level 2. (ⅵ) Bonds payable Corporate bonds with market prices are valued at market prices and classified as Level 2. Corporate bonds without market prices are valued at the present value of future cash flows discounted using the rate that combines the market interest rate on the valuation date with Sony FG’s equity premium, and are classified as Level 3. (ⅶ) Borrowed money The present value of the estimated future cash flows of principal and interest, discounted at the market interest rate on the valuation date, is used as the fair value, and is classified as Level 2. (4) Financial instruments measured at fair value The following table shows an analysis of financial instruments measured at fair value at the reporting date by the level of t he fair value hierarchy into which the fair value measurement is categorized. (Millions of yen) March 31, 2026 Level 1 Level 2 Level 3 Total Securities Debt securities Japanese national government bonds － 6,203,295 － 6,203,295 Japanese local government bonds － 170,779 － 170,779 Japanese corporate bonds － 705,888 86,750 792,639 Foreign government bonds － 1,668,215 － 1,668,215 Foreign corporate bonds － 514,947 76,891 591,839 Securitized products － 103,526 120,326 223,853 Other Securities － 939,218 54,317 993,535 Equity securities Japanese equities 571,678 － 2,613 574,292 Foreign equities 3,375,732 － 1,416 3,377,149 Derivative assets 9,740 221,291 － 231,032 Total financial assets 3,957,152 10,527,163 342,316 14,826,632 Derivative liabilities 3 50,227 － 50,231 Total financial liabilities 3 50,227 － 50,231
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19 (Millions of yen) June 30, 2026 Level 1 Level 2 Level 3 Total Securities Debt securities Japanese national government bonds － 5,893,597 － 5,893,597 Japanese local government bonds － 207,196 － 207,196 Japanese corporate bonds － 692,346 86,025 778,372 Foreign government bonds － 1,695,868 － 1,695,868 Foreign corporate bonds － 564,047 85,009 649,057 Securitized products － 134,212 110,868 245,080 Other Securities － 1,209,959 67,188 1,277,147 Equity securities Japanese equities 812,032 － 3,017 815,050 Foreign equities 3,723,598 － 1,630 3,725,228 Derivative assets 346 265,654 － 266,001 Total financial assets 4,535,977 10,662,883 353,739 15,552,600 Derivative liabilities 8,265 58,484 － 66,750 Total financial liabilities 8,265 58,484 － 66,750
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20 (5) Financial instruments not measured at fair value The following table shows a comparison of the carrying amounts and fair values of financial instruments that are not measured at fair value. Other financial assets, call money, payables under repurchase agreements, collateral for securities lending transactions, and other financial liabilities are classified as financial instruments measured at amortized cost; however, as these are pri marily short-term transactions and their carrying amounts approximate fair value, they are not included in the table below. (Millions of yen) March 31, 2026 June 30, 2026 Carrying amount Fair value Carrying amount Fair value Securities Debt securities Japanese national government bonds － － － － Japanese local government bonds 29,711 27,234 42,151 38,779 Japanese corporate bonds 52,485 45,547 51,882 43,868 Foreign government bonds － － － － Foreign corporate bonds － － － － Securitized products 479,841 479,995 516,860 516,987 Other Securities 26,508 25,532 26,198 24,858 Loans Housing loans 3,650,595 3,671,469 3,623,745 3,635,989 Other 45,170 44,817 47,516 47,391 Total financial assets 4,284,313 4,294,595 4,308,355 4,307,875 Deposits in the banking business 4,600,113 4,589,708 4,620,117 4,609,731 Investment contract liabilities 58,847 55,590 59,854 56,305 Bonds payable 179,748 176,935 179,787 176,895 Borrowed money 657,547 649,529 654,017 646,698 Total financial liabilities 5,496,256 5,471,763 5,513,776 5,489,631
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21 (Insurance Revenue) (Millions of yen) Three months ended June 30, 2025 Life insurance business Non-life insurance business Total Insurance contracts not measured under the PAA Amounts relating to the changes in the liability for remaining coverage CSM recognized in profit or loss for services provided 38,778 208 38,986 Changes in risk adjustments for non-financial risk due to risk expired 7,800 89 7,890 Expected incurred claims and other insurance service expenses 44,062 2,431 46,493 Other － 94 94 Recovery of insurance acquisition cash flows 29,907 334 30,241 Total insurance revenue for the insurance contracts not measured under the PAA 120,548 3,157 123,706 Insurance contracts measured under the PAA － 39,016 39,016 Total insurance revenue 120,548 42,174 162,723 (Millions of yen) Three months ended June 30, 2026 Life insurance business Non-life insurance business Total Insurance contracts not measured under the PAA Amounts relating to the changes in the liability for remaining coverage CSM recognized in profit or loss for services provided 41,623 262 41,885 Changes in risk adjustments for non-financial risk due to risk expired 8,214 89 8,304 Expected incurred claims and other insurance service expenses 46,663 2,828 49,491 Other － 113 113 Recovery of insurance acquisition cash flows 33,147 992 34,140 Total insurance revenue for the insurance contracts not measured under the PAA 129,648 4,286 133,934 Insurance contracts measured under the PAA － 44,070 44,070 Total insurance revenue 129,648 48,357 178,005
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22 (Financial Result of the Insurance Business) The following table shows the financial result in profit or loss and other comprehensive income by the life insurance and non-life insurance subsidiaries. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Amounts recognized in profit or loss Investment returns, net*1 Interest income from debt instruments required to be measured at FVOCI*2 44,565 47,146 Financial assets measured at FVPL*3 116,509 677,413 Foreign exchange gains and losses arising from financial instruments that are not measured at FVPL (48,071) 31,050 Other (108,360) (40,330) Total 4,643 715,280 Insurance finance gains and losses, net Interest accreted (48,636) (51,087) Effect of changes in the value of underlying items of variable life insurance and individual variable annuity contracts and changes in interest rates and other financial risks (80,543) (674,905) Foreign exchange gains and losses 49,260 (30,302) Other 3,711 5,594 Total (76,208) (750,701) Reinsurance finance gains and losses, net Interest accreted 37 3,452 Foreign exchange gains and losses (7) 5,341 Other 0 18 Total 30 8,811 Total amounts recognized in profit or loss (71,533) (26,608) Amounts recognized in other comprehensive income Investment returns, net (185,492) (151,097) Total (185,492) (151,097) Insurance finance gains and losses, net Effect of changes in interest rates and other financial risks 262,396 131,140 Total 262,396 131,140 Reinsurance finance gains and losses, net Effect of changes in interest rates and other financial risks (125) (2,425) Total (125) (2,425) Total amounts recognized in other comprehensive income 76,778 (22,383) Total financial result 5,244 (48,991) *1 Total of net fee and commission income, investment gains and losses and impairment loss on financial assets in the consoli dated statements of income. *2 Included in interest income in the consolidated statements of income. *3 Includes changes in fair value attributable to the hedged risk of debt financial instruments measured at fair value throug h other comprehensive income, which are designated as hedged items in fair value hedges.
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23 (Insurance and Reinsurance Contracts) (1) Movements in insurance and reinsurance contract balances The following tables show the changes in insurance and reinsurance contract assets. (ⅰ) Life insurance business a) Insurance contracts (a) Changes in liabilities for remaining coverage and liabilities for incurred claims (Millions of yen) Three months ended June 30, 2025 Liability for remaining coverage Liability for incurred claims Total Excluding loss component Loss component Opening insurance contract assets (81,537) 2 33,819 (47,715) Opening insurance contract liabilities 12,540,087 51,811 78,687 12,670,586 Net amounts 12,458,549 51,813 112,507 12,622,870 Insurance revenue Contracts under modified retrospective transition approach (39,697) － － (39,697) Contracts under fair value transition approach (7,547) － － (7,547) New contracts and contracts under full retrospective approach (73,303) － － (73,303) Total (120,548) － － (120,548) Insurance service expenses Incurred claims and other insurance service expenses － (871) 46,039 45,167 Amortization of insurance acquisition cash flows 29,907 － － 29,907 Losses and reversals of losses on onerous contracts － 4,795 － 4,795 Changes in liabilities for incurred claims － － 421 421 Total 29,907 3,923 46,460 80,292 Insurance service result (90,641) 3,923 46,460 (40,256) Insurance finance gains and losses, net (180,056) (1,020) 253 (180,824) Total amounts recognized in comprehensive income (270,698) 2,903 46,713 (221,081) Investment components excluded from insurance revenue and insurance service expenses (203,549) － 203,549 － Cash flows Premiums received 421,274 － － 421,274 Claims and other insurance service expenses paid (including investment components) － － (245,603) (245,603) Insurance acquisition cash flows (37,236) － － (37,236) Total 384,038 － (245,603) 138,435 Transfer to other items in the statement of financial position － － (7,469) (7,469) Other (415) (56) 91 (379) Closing insurance contract assets (88,140) 3 35,064 (53,072) Closing insurance contract liabilities 12,456,065 54,657 74,725 12,585,448 Net amounts 12,367,925 54,661 109,789 12,532,375 Note: The “transition date” above refers to the date on which the former parent company, Sony Group Corporation, adopted IFRS 17 Insurance Contracts (“IFRS 17”).
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24 (Millions of yen) Three months ended June 30, 2026 Liability for remaining coverage Liability for incurred claims Total Excluding loss component Loss component Opening insurance contract assets (78,164) 96 32,938 (45,128) Opening insurance contract liabilities 12,397,176 69,991 79,695 12,546,863 Net amounts 12,319,012 70,088 112,634 12,501,734 Insurance revenue Contracts under modified retrospective transition approach (37,415) － － (37,415) Contracts under fair value transition approach (8,223) － － (8,223) New contracts and contracts under full retrospective approach (84,008) － － (84,008) Total (129,648) － － (129,648) Insurance service expenses Incurred claims and other insurance service expenses － (1,110) 48,801 47,690 Amortization of insurance acquisition cash flows 33,147 － － 33,147 Losses and reversals of losses on onerous contracts － 8,254 － 8,254 Changes in liabilities for incurred claims － － 50 50 Total 33,147 7,143 48,851 89,142 Insurance service result (96,500) 7,143 48,851 (40,505) Insurance finance gains and losses, net 619,672 381 (459) 619,595 Total amounts recognized in comprehensive income 523,171 7,525 48,392 579,089 Investment components excluded from insurance revenue and insurance service expenses (286,473) － 286,473 － Cash flows Premiums received 493,238 － － 493,238 Claims and other insurance service expenses paid (including investment components) － － (325,963) (325,963) Insurance acquisition cash flows (39,672) － － (39,672) Total 453,566 － (325,963) 127,602 Transfer to other items in the statement of financial position － － (8,241) (8,241) Other 2 (55) 71 19 Closing insurance contract assets (76,791) 93 32,631 (44,066) Closing insurance contract liabilities 13,086,071 77,465 80,734 13,244,271 Net amounts 13,009,280 77,558 113,366 13,200,205 Note: The “transition date” above refers to the date on which the former parent company, Sony Group Corporation, adopted IFRS 17.
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25 (b) Changes in insurance contract liabilities from insurance contracts not measured under the PAA by measurement component (Millions of yen) Three months ended June 30, 2025 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening insurance contract assets (245,601) 24,500 173,385 (47,715) Opening insurance contract liabilities 10,373,652 401,805 1,895,127 12,670,586 Net amounts 10,128,051 426,306 2,068,513 12,622,870 Changes that relate to current service CSM recognized in profit or loss for the services provided － － (38,778) (38,778) Change in risk adjustment for non-financial risk for risk expired － (7,800) － (7,800) Experience adjustments 1,104 － － 1,104 Changes that relate to future service Effect of contracts initially recognized during the period (86,326) 10,541 75,784 － Changes in estimates that adjust the CSM 4,216 36,391 (40,608) － Changes in estimates that result in losses and reversals of losses on onerous contracts 2,947 1,847 － 4,795 Changes that relate to past service Adjustments to liabilities for incurred claims 421 － － 421 Insurance service result (77,635) 40,980 (3,602) (40,256) Insurance finance gains and losses, net (182,156) (1,255) 2,587 (180,824) Total amounts recognized in comprehensive income (259,791) 39,725 (1,014) (221,081) Cash flows Premiums received 421,274 － － 421,274 Claims and other insurance service expenses paid (including investment components) (245,603) － － (245,603) Insurance acquisition cash flows (37,236) － － (37,236) Total 138,435 － － 138,435 Transfer to other items in the statement of financial position (7,469) － － (7,469) Other (326) － (53) (379) Closing insurance contract assets (310,362) 35,102 222,187 (53,072) Closing insurance contract liabilities 10,309,261 430,929 1,845,258 12,585,448 Net amounts 9,998,898 466,031 2,067,445 12,532,375
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26 (Millions of yen) Three months ended June 30, 2026 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening insurance contract assets (244,939) 23,194 176,615 (45,128) Opening insurance contract liabilities 10,258,317 409,199 1,879,346 12,546,863 Net amounts 10,013,378 432,394 2,055,961 12,501,734 Changes that relate to current service CSM recognized in profit or loss for the services provided － － (41,623) (41,623) Change in risk adjustment for non-financial risk for risk expired － (8,214) － (8,214) Experience adjustments 1,027 － － 1,027 Changes that relate to future service Effect of contracts initially recognized during the period (63,908) 7,618 56,289 － Changes in estimates that adjust the CSM (15,938) (2,933) 18,872 － Changes in estimates that result in losses and reversals of losses on onerous contracts 7,738 516 － 8,254 Changes that relate to past service Adjustments to liabilities for incurred claims 50 － － 50 Insurance service result (71,030) (3,012) 33,538 (40,505) Insurance finance gains and losses, net 610,408 750 8,436 619,595 Total amounts recognized in comprehensive income 539,377 (2,261) 41,974 579,089 Cash flows Premiums received 493,238 － － 493,238 Claims and other insurance service expenses paid (including investment components) (325,963) － － (325,963) Insurance acquisition cash flows (39,672) － － (39,672) Total 127,602 － － 127,602 Transfer to other items in the statement of financial position (8,241) － － (8,241) Other 19 － 0 19 Closing insurance contract assets (247,819) 23,076 180,676 (44,066) Closing insurance contract liabilities 10,919,956 407,055 1,917,259 13,244,271 Net amounts 10,672,136 430,132 2,097,936 13,200,205
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27 b) Reinsurance contracts (a) Changes in assets for remaining coverage and assets for incurred claims (Millions of yen) Three months ended June 30, 2025 Assets for remaining coverage Assets for incurred claims Total Excluding loss- recovery component Loss-recovery component Opening reinsurance contract assets 24,306 904 3,866 29,077 Opening reinsurance contract liabilities － － － － Net amounts 24,306 904 3,866 29,077 Allocation of reinsurance premiums paid (694) － － (694) Amounts recoverable from reinsurers Recoveries of incurred claims and other insurance service expenses － (49) 524 474 Recoveries and reversals of recoveries of losses on onerous underlying contracts － 228 － 228 Adjustments to assets for incurred claims － － － － Total － 178 524 703 Effect of changes in non-performance risk of reinsurers － － － － Income or expenses from reinsurance contracts held (694) 178 524 9 Reinsurance finance gains and losses, net (104) － － (104) Total amounts recognized in comprehensive income (798) 178 524 (95) Investment components and premium refunds (1,378) － 1,378 － Cash flows Premiums paid 2,141 － － 2,141 Reinsurance recoveries received － － (2,882) (2,882) Total 2,141 － (2,882) (741) Other － － － － Closing reinsurance contract assets 24,483 1,082 2,885 28,451 Closing reinsurance contract liabilities (212) － 1 (211) Net amounts 24,270 1,082 2,886 28,240
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28 (Millions of yen) Three months ended June 30, 2026 Assets for remaining coverage Assets for incurred claims Total Excluding loss- recovery component Loss-recovery component Opening reinsurance contract assets 259,803 (295) 13,649 273,157 Opening reinsurance contract liabilities (126) － － (126) Net amounts 259,676 (295) 13,649 273,031 Allocation of reinsurance premiums paid (1,205) － － (1,205) Amounts recoverable from reinsurers Recoveries of incurred claims and other insurance service expenses － (55) 529 473 Recoveries and reversals of recoveries of losses on onerous underlying contracts － 956 － 956 Adjustments to assets for incurred claims － － － － Total － 901 529 1,430 Effect of changes in non-performance risk of reinsurers 101 － － 101 Income or expenses from reinsurance contracts held (1,103) 901 529 326 Reinsurance finance gains and losses, net 6,448 (47) － 6,401 Total amounts recognized in comprehensive income 5,345 853 529 6,727 Investment components and premium refunds (16,475) － 16,475 － Cash flows Premiums paid 113,841 － － 113,841 Reinsurance recoveries received － － (15,391) (15,391) Total 113,841 － (15,391) 98,450 Other － － － － Closing reinsurance contract assets 362,499 558 15,263 378,320 Closing reinsurance contract liabilities (111) － － (111) Net amounts 362,387 558 15,263 378,209
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29 (b) Changes in reinsurance contract assets from reinsurance contracts not measured under the PAA by measurement component (Millions of yen) Three months ended June 30, 2025 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening reinsurance contract assets 28,817 (74) 333 29,077 Opening reinsurance contract liabilities － － － － Net amounts 28,817 (74) 333 29,077 Changes that relate to current service CSM recognized in profit or loss for the services provided － － 2 2 Change in risk adjustment for non-financial risk for risk expired － 10 － 10 Experience adjustments (233) － － (233) Changes that relate to future services Effect of contracts initially recognized during the period (29) (1) 31 － Changes in recoveries of losses on onerous underlying contracts that adjust the CSM － － 228 228 Changes in estimates that adjust the CSM 201 (19) (182) － Changes in estimates that relate to losses and reversals of losses on onerous underlying contracts － － － － Changes that relate to past service Adjustments to assets for incurred claims － － － － Effect of changes in non-performance risk of reinsurers － － － － Income or expenses from reinsurance contracts held (61) (10) 80 9 Reinsurance finance gains and losses, net (101) (0) (2) (104) Total amounts recognized in comprehensive income (163) (10) 77 (95) Cash flows Premiums paid 2,141 － － 2,141 Reinsurance recoveries received (2,882) － － (2,882) Total (741) － － (741) Other － － － － Closing reinsurance contract assets 28,059 (50) 442 28,451 Closing reinsurance contract liabilities (146) (34) (30) (211) Net amounts 27,913 (84) 411 28,240
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30 (Millions of yen) Three months ended June 30, 2026 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening reinsurance contract assets 268,666 9,186 (4,694) 273,157 Opening reinsurance contract liabilities 57 (41) (142) (126) Net amounts 268,724 9,144 (4,837) 273,031 Changes that relate to current service CSM recognized in profit or loss for the services provided － － 204 204 Change in risk adjustment for non-financial risk for risk expired － (209) － (209) Experience adjustments (726) － － (726) Changes that relate to future services Effect of contracts initially recognized during the period 3,876 (395) (3,480) － Changes in recoveries of losses on onerous underlying contracts that adjust the CSM － － 956 956 Changes in estimates that adjust the CSM 2,869 369 (3,238) － Changes in estimates that relate to losses and reversals of losses on onerous underlying contracts － － － － Changes that relate to past service Adjustments to assets for incurred claims － － － － Effect of changes in non-performance risk of reinsurers 101 － － 101 Income or expenses from reinsurance contracts held 6,120 (235) (5,558) 326 Reinsurance finance gains and losses, net 6,524 130 (253) 6,401 Total amounts recognized in comprehensive income 12,645 (105) (5,812) 6,727 Cash flows Premiums paid 113,841 － － 113,841 Reinsurance recoveries received (15,391) － － (15,391) Total 98,450 － － 98,450 Other － － － － Closing reinsurance contract assets 379,756 9,075 (10,511) 378,320 Closing reinsurance contract liabilities 62 (35) (137) (111) Net amounts 379,819 9,039 (10,649) 378,209
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31 (ⅱ) Non-life insurance business a) Insurance contracts (a) Changes in liabilities for remaining coverage and liabilities for incurred claims (Millions of yen) Three months ended June 30, 2025 Liability for remaining coverage Liabilities for incurred claims Total Liabilities for incurred claims Contracts under PAA Estimates of present value of future cash flows Risk adjustment for non- financial risk Excluding loss component Loss component Opening insurance contract assets － － － － － － Opening insurance contract liabilities 124,609 12,770 1,746 59,272 441 198,839 Net amounts 124,609 12,770 1,746 59,272 441 198,839 Insurance revenue Contracts under modified retrospective transition approach (1,689) － － － － (1,689) Contracts under fair value transition approach － － － － － － New contracts and contracts under full retrospective approach (40,484) － － － － (40,484) Total (42,174) － － － － (42,174) Insurance service expenses Incurred claims and other insurance service expenses － (739) 2,639 30,425 105 32,431 Amortization of insurance acquisition cash flows 4,284 － － － － 4,284 Losses and reversals of losses on onerous contracts － 777 － － － 777 Changes in liabilities for incurred claims － － (118) (1,242) (114) (1,476) Total 4,284 37 2,520 29,182 (9) 36,016 Insurance service result (37,890) 37 2,520 29,182 (9) (6,158) Insurance finance gains and losses, net (5,659) 7 － 286 2 (5,363) Total amounts recognized in comprehensive income (43,549) 45 2,520 29,469 (7) (11,521) Investment components excluded from insurance revenue and insurance service expenses － － － － － － Cash flows Premiums received 45,772 － － － － 45,772 Claims and other insurance service expenses paid (including investment components) － － (2,635) (30,425) － (33,061) Insurance acquisition cash flows (4,833) － － － － (4,833) Total 40,939 － (2,635) (30,425) － 7,878 Transfer to other items in the statement of financial position － － － － － － Other (33) － 553 (535) － (15) Closing insurance contract assets － － － － － － Closing insurance contract liabilities 121,965 12,816 2,184 57,780 433 195,180 Net amounts 121,965 12,816 2,184 57,780 433 195,180 Note: The “transition date” above refers to the date on which the former parent company, Sony Group Corporation, adopted IFRS 17.
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32 (Millions of yen) Three months ended June 30, 2026 Liability for remaining coverage Liabilities for incurred claims Total Liabilities for incurred claims Contracts under PAA Estimates of present value of future cash flows Risk adjustment for non- financial risk Excluding loss component Loss component Opening insurance contract assets － － － － － － Opening insurance contract liabilities 126,851 11,324 2,547 61,889 248 202,861 Net amounts 126,851 11,324 2,547 61,889 248 202,861 Insurance revenue Contracts under modified retrospective transition approach (1,835) － － － － (1,835) Contracts under fair value transition approach － － － － － － New contracts and contracts under full retrospective approach (46,521) － － － － (46,521) Total (48,357) － － － － (48,357) Insurance service expenses Incurred claims and other insurance service expenses － (752) 2,877 33,012 61 35,198 Amortization of insurance acquisition cash flows 5,159 － － － － 5,159 Losses and reversals of losses on onerous contracts － 386 － － － 386 Changes in liabilities for incurred claims － － 60 46 (61) 45 Total 5,159 (366) 2,938 33,058 0 40,790 Insurance service result (43,197) (366) 2,938 33,058 0 (7,567) Insurance finance gains and losses, net 288 13 － (335) (1) (34) Total amounts recognized in comprehensive income (42,908) (352) 2,938 32,723 (1) (7,601) Investment components excluded from insurance revenue and insurance service expenses － － － － － － Cash flows Premiums received 51,859 － － － － 51,859 Claims and other insurance service expenses paid (including investment components) － － (2,872) (33,012) － (35,884) Insurance acquisition cash flows (4,736) － － － － (4,736) Total 47,122 － (2,872) (33,012) － 11,237 Transfer to other items in the statement of financial position － － － － － － Other (165) － － (6) － (171) Closing insurance contract assets － － － － － － Closing insurance contract liabilities 130,899 10,971 2,612 61,594 247 206,325 Net amounts 130,899 10,971 2,612 61,594 247 206,325 Note: The “transition date” above refers to the date on which the former parent company, Sony Group Corporation, adopted IFRS 17.
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33 (b) Changes in insurance contract liabilities from insurance contracts not measured under the PAA by measurement component (Millions of yen) Three months ended June 30, 2025 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening insurance contract assets － － － － Opening insurance contract liabilities 41,274 15,767 16,464 73,506 Net amounts 41,274 15,767 16,464 73,506 Changes that relate to current service CSM recognized in profit or loss for the services provided － － (208) (208) Change in risk adjustment for non-financial risk for risk expired － (180) － (180) Experience adjustments (534) － － (534) Changes that relate to future service Effect of contracts initially recognized during the period 141 136 129 407 Changes in estimates that adjust the CSM (28) 1 27 － Changes in estimates that result in losses and reversals of losses on onerous contracts 351 18 － 369 Changes that relate to past service Adjustments to liabilities for incurred claims (113) (5) － (118) Insurance service result (184) (28) (52) (264) Insurance finance gains and losses, net (5,027) (696) 71 (5,652) Total amounts recognized in comprehensive income (5,211) (724) 19 (5,916) Cash flows Premiums received 4,478 － － 4,478 Claims and other insurance service expenses paid (2,635) － － (2,635) Insurance acquisition cash flows (824) － － (824) Total 1,018 － － 1,018 Transfer to other items in the statement of financial position － － － － Other 540 － － 540 Closing insurance contract assets － － － － Closing insurance contract liabilities 37,621 15,043 16,483 69,148 Net amounts 37,621 15,043 16,483 69,148
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34 (Millions of yen) Three months ended June 30, 2026 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening insurance contract assets － － － － Opening insurance contract liabilities 33,970 11,770 20,277 66,017 Net amounts 33,970 11,770 20,277 66,017 Changes that relate to current service CSM recognized in profit or loss for the services provided － － (262) (262) Change in risk adjustment for non-financial risk for risk expired － (181) － (181) Experience adjustments (725) － － (725) Changes that relate to future service Effect of contracts initially recognized during the period 307 124 10 441 Changes in estimates that adjust the CSM (8) 8 0 － Changes in estimates that result in losses and reversals of losses on onerous contracts (52) (2) － (55) Changes that relate to past service Adjustments to liabilities for incurred claims 64 (3) － 60 Insurance service result (414) (55) (251) (722) Insurance finance gains and losses, net 355 (149) 95 302 Total amounts recognized in comprehensive income (58) (205) (155) (419) Cash flows Premiums received 5,216 － － 5,216 Claims and other insurance service expenses paid (2,872) － － (2,872) Insurance acquisition cash flows (608) － － (608) Total 1,735 － － 1,735 Transfer to other items in the statement of financial position － － － － Other (27) － － (27) Closing insurance contract assets － － － － Closing insurance contract liabilities 35,619 11,564 20,121 67,305 Net amounts 35,619 11,564 20,121 67,305
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35 b) Reinsurance contracts (a) Changes in assets for remaining coverage and assets for incurred claims (Millions of yen) Three months ended June 30, 2025 Assets for remaining coverage Assets for incurred claims Total Assets for incurred claims Contracts under PAA Estimates of present value of future cash flows Risk adjustment for non- financial risk Excluding loss-recovery component Loss- recovery component Opening reinsurance contract assets 644 274 14 936 5 1,875 Opening reinsurance contract liabilities － － － － － － Net amounts 644 274 14 936 5 1,875 Allocation of reinsurance premiums paid (538) － － － － (538) Amounts recoverable from reinsurers Recoveries of incurred claims and other insurance service expenses － (17) 8 265 1 258 Recoveries and reversals of recoveries of losses on onerous underlying contracts － (0) － － － (0) Adjustments to assets for incurred claims － － (2) (293) (4) (300) Total － (18) 6 (28) (2) (43) Effect of changes in non-performance risk of reinsurers － － － － － － Income or expenses from reinsurance contracts held (538) (18) 6 (28) (2) (581) Reinsurance finance gains and losses, net 2 1 － 6 0 9 Total amounts recognized in comprehensive income (535) (17) 6 (22) (2) (572) Investment components and premium refunds － － － － － － Cash flows Premiums paid 513 － － － － 513 Reinsurance recoveries received － － (8) (265) － (274) Total 513 － (8) (265) － 239 Other 47 － 4 265 － 317 Closing reinsurance contract assets 669 257 16 914 2 1,860 Closing reinsurance contract liabilities － － － － － － Net amounts 669 257 16 914 2 1,860
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36 (Millions of yen) Three months ended June 30, 2026 Assets for remaining coverage Assets for incurred claims Total Assets for incurred claims Contracts under PAA Estimates of present value of future cash flows Risk adjustment for non- financial risk Excluding loss-recovery component Loss- recovery component Opening reinsurance contract assets 590 255 18 870 0 1,734 Opening reinsurance contract liabilities － － － － － － Net amounts 590 255 18 870 0 1,734 Allocation of reinsurance premiums paid (640) － － － － (640) Amounts recoverable from reinsurers Recoveries of incurred claims and other insurance service expenses － (13) 4 52 0 44 Recoveries and reversals of recoveries of losses on onerous underlying contracts － (0) － － － (0) Adjustments to assets for incurred claims － － 1 (31) (0) (30) Total － (14) 6 21 (0) 13 Effect of changes in non-performance risk of reinsurers － － － － － － Income or expenses from reinsurance contracts held (640) (14) 6 21 (0) (627) Reinsurance finance gains and losses, net (0) 1 － (16) (0) (14) Total amounts recognized in comprehensive income (640) (13) 6 5 (0) (642) Investment components and premium refunds － － － － － － Cash flows Premiums paid 597 － － － － 597 Reinsurance recoveries received － － (4) (52) － (57) Total 597 － (4) (52) － 540 Other 90 － (0) (613) － (523) Closing reinsurance contract assets 637 242 19 209 0 1,108 Closing reinsurance contract liabilities － － － － － － Net amounts 637 242 19 209 0 1,108
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37 (b) Changes in reinsurance contract assets from reinsurance contracts not measured under the PAA by measurement component (Millions of yen) Three months ended June 30, 2025 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening reinsurance contract assets 454 14 396 866 Opening reinsurance contract liabilities － － － － Net amounts 454 14 396 866 Changes that relate to current service CSM recognized in profit or loss for the services provided － － (22) (22) Change in risk adjustment for non-financial risk for risk expired － (2) － (2) Experience adjustments (83) － － (83) Changes that relate to future services Effect of contracts initially recognized during the period (16) 1 14 － Changes in recoveries of losses on onerous underlying contracts that adjust the CSM － － － － Changes in estimates that adjust the CSM 28 2 (30) － Changes in estimates that relate to losses and reversals of losses on onerous underlying contracts (0) － － (0) Changes that relate to past service Adjustments to assets for incurred claims (2) (0) － (2) Effect of changes in non-performance risk of reinsurers － － － － Income or expenses from reinsurance contracts held (74) 0 (37) (111) Reinsurance finance gains and losses, net 1 0 1 3 Total amounts recognized in comprehensive income (72) 0 (35) (108) Cash flows Premiums paid 74 － － 74 Reinsurance recoveries received (8) － － (8) Total 65 － － 65 Other 3 － － 3 Closing reinsurance contract assets 451 14 360 827 Closing reinsurance contract liabilities － － － － Net amounts 451 14 360 827
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38 (Millions of yen) Three months ended June 30, 2026 Estimates of present value of future cash flows Risk adjustment for non-financial risk CSM Total Opening reinsurance contract assets 443 17 319 780 Opening reinsurance contract liabilities － － － － Net amounts 443 17 319 780 Changes that relate to current service CSM recognized in profit or loss for the services provided － － (20) (20) Change in risk adjustment for non-financial risk for risk expired － (3) － (3) Experience adjustments (111) － － (111) Changes that relate to future services Effect of contracts initially recognized during the period (12) 1 10 － Changes in recoveries of losses on onerous underlying contracts that adjust the CSM － － － － Changes in estimates that adjust the CSM (15) 0 15 － Changes in estimates that relate to losses and reversals of losses on onerous underlying contracts (0) － － (0) Changes that relate to past service Adjustments to assets for incurred claims 1 (0) － 1 Effect of changes in non-performance risk of reinsurers － － － － Income or expenses from reinsurance contracts held (138) (2) 6 (135) Reinsurance finance gains and losses, net (0) 0 1 1 Total amounts recognized in comprehensive income (139) (2) 7 (133) Cash flows Premiums paid 83 － － 83 Reinsurance recoveries received (4) － － (4) Total 79 － － 79 Other 7 － － 7 Closing reinsurance contract assets 390 15 327 732 Closing reinsurance contract liabilities － － － － Net amounts 390 15 327 732
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39 (2) Significant judgements and estimates Discount rates All cash flows are discounted using risk-free yield curves adjusted to reflect the characteristics of the cash flows and the liquidity of the insurance contracts. Sony FG determines the risk-free yield curves using the yields on government bonds. The yield curve is determined by incorporating long-term real interest rate and inflation expectations. Regarding extrapolation for the periods in which market data is not available, a method using an ultimate forward rate is applied. Specifically, Sony FG uses an ultimate forward rate of 3.5% and starts extrapolation in the 40th year (or the 30th year for U.S. dollar). The forward rates for the 41st year (or the 31st year for U.S. dollar) and onwards are extrapolated so that they will converge to the level of the u ltimate forward rate in 30 years, using the Smith-Wilson method. To reflect the liquidity characteristics of the insurance contracts, the risk -free yield curves are adjusted by an illiquidity premium. Illiquidity premiums are determined by setting up a reference portfolio of Sony FG’s assets. The table below sets out the yield curves used to discount the cash flows of insurance contracts for major currencies (converted at the spot rate). Term Yield curve (%) March 31, 2026 June 30, 2026 JPY USD JPY USD 1 year 1.12 3.74 1.18 3.97 5 years 1.83 4.03 1.97 4.29 10 years 2.44 4.46 2.80 4.56 20 years 3.57 5.26 3.97 5.23 30 years 4.06 5.11 4.26 5.10 40 years 4.13 4.64 4.00 4.66 When the present value of future cash flows is estimated by stochastic modelling, the cash flows are discounted at scenario-specific rates calibrated, on average, to be the risk-free rates as adjusted for illiquidity.
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40 (Subsequent Events) (Establishment of a U.S. trust subsidiary) On July 6, 2026, the Board of Directors approved the establishment of a new subsidiary in the United States by Sony Bank Inc. , a consolidated subsidiary of the Company, and the new subsidiary was incorporated on July 10, 2026. Since the capital of the subsidiary is 10% or more of the Company’s capital stock, the subsidiary constitutes a specified subsidiary of the Company. 1. Purpose of the Establishment of the Subsidiary The subsidiary was established to build a foundation for the expansion of digital asset-related businesses in the United States. 2. Overview of the Subsidiary (1) Name : Connectia Trust, National Association (2) Location : The United States (3) Business description : Trust company business and related operations (4) Capital : US$40 million (5) Date of establishment : July 10, 2026 (6) Ownership interest : 100% (indirectly held through Sony Bank Inc.) (Transfer of shares of an equity-method affiliate) Sony Bank Inc., a consolidated subsidiary of the Company, received a notice of exercise of drag-along rights pursuant to a shareholders' agreement with respect to its shares in BXJA I Holding KK (“BXJA1”), an equity-method affiliate. The transfer of such shares (the “Share Transfer”) is subject to the receipt of regulatory approvals and other customary clos ing conditions. BXJA1 holds shares in SP .LINKS Co., Ltd. and ETC Solutions Co., Ltd. As a result of the Share Transfer, BXJA1, SP .LINKS Co., Ltd. and ETC Solutions Co., Ltd. are expected to cease to be equity-method affiliates of the Company. 1. Reason for the Transfer The Share Transfer results from the exercise of drag-along rights under the shareholders' agreement. 2. Timing of the Transfer During the fiscal year ending March 31, 2027 (expected). 3. Estimated Financial Impact The Company expects to recognize profit (loss) before income taxes of approximately ¥11.0 billion in the consolidated financial statements for the fiscal year ending March 31, 2027 as a result of the Share Transfer.
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41 Cautionary Statement Statements made in this material with respect to Sony FG’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 FG. Forward-looking statement s include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or wr itten forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony FG cautions inves tors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward- looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony FG to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The information contained in this material 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.