Turn the power off and pull the battery out and reinsert it.
Hold the Volume Down button.
Then press and release the Power button.
Wait a minute until the menu showing these options appears: Fastbook, Recovery, Clear Storage, and Simlock.
Then, press the Volume Down button to choose Clear Storage.
Next, press and release the Power button and wait for the Sony Ericsson Xperia Neo V to restart.
You will see the two options: Volume Up for YES and Volume Down for NO.
If you choose YES, all data will be deleted from your Sony Ericsson Xperia Neo V including third-party applications. The Sony Ericsson Xperia Neo V will now be back to the factory settings.