Presentation Materials

FY2008 First Quarter
Consolidated Financial ResultsSony Financial Holdings Inc.
August 13, 20080

Disclaimers:
These presentation materials contain statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performance andthat are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” “possibility” and similar words that describe
future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written,
are based on judgments made by the management of the SFH Group, based on information that is currently available to it. As
such, these forward-looking statements 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 toplace undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking
statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for 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.

1

Disclaimer

1Highlights of Group Consolidated Operating
Performance for FY2008 1Q

Ordinary revenues

213.2

+1%

Ordinay profit
Life insurance
business

215.0
Non-life
insurancebusiness+4%
13.4

Bankingbusiness

13.9(Billionsof yen)FY07.1Q

FY20071Q

FY20081Q

Ordinary
revenues

193.9

190.9

-3.0

-2%

Ordinary
profit

12.2

12.3

+0.1

+1%

Ordinary
revenues

14.1

15.7

+1.5

+11%

Ordinary
profit

0.6

0.4

-0.1

-24%

Ordinary
revenues

5.3

8.6

+3.2

+61%

Ordinary
profit

0.5

1.0

+0.5

+106%

Ordinary
revenues

(0.3)

(0.2)

+0.1

-

Ordinary
profit

0.0

0.0

+0.0

+146%

Ordinary
revenues

213.2

215.0

+1.8

+1%

Ordinary
profit

金額は単位未満切捨て、増減率は四捨五入で表示
13.4
13.9
+0.5
+4%

(Billions of yen)

Corporate andeliminations

FY08.1Q
SFH Group,
consolidated

ChangeLine item amounts are truncated below ¥100 million; percentage change figures are rounded.

2

Associated with the increase in the consolidated ordinary profit,
consolidated net income grew 7% year on year, to ¥7.8 billion.

Highlights of Group Consolidated Operating
Performance for FY2008 1Q
 In the life insurance business, ordinary revenues fell, as gains on

separate accounts (net) decreased, despite income from insurance
premiums increased associated with a higher policy amount in force.
Ordinary profit was almost flat as increases in income from insurance
premiums and in interest and dividend income offset the decrease ingains on sale of securities.
 In the non-life insurance business, ordinary revenues increased due tofavorable performance in its mainstay automobile insurance, whichraised net premiums written. Ordinary profit declined owing primarily to
an increase in operating expenses.
 In the banking business, both ordinary revenues and ordinary profits

increased mainly due to higher net interest income, in line with thebank’s business expansion.
 Consolidated ordinary revenues was almost flat (up 1%) comparedwith the same period of the previous fiscal year, to ¥215.0 billion.
Consolidated ordinary profit increased 4% to ¥13.9 billion. Net income
grew 7% to ¥7.8 billion.
3

3

Highlights of Operating Performance:
Sony Life (Non-Consolidated)
Ordinary revenues

Ordinary profit(Billions of yen)

193.9

-2%

Ordinary revenues

190.8

12.3
(Billions of yen)

FY07.1Q

FY08.1Q

FY2008
1Q

Change

193.9

190.8

-3.0

-2%

Income from insurance
premiums

158.1

162.5

+4.4

+3%

Investment income

34.3

27.5

-6.8

-20%

Ordinary expenses

181.6

178.5

-3.1

-2%

62.4

60.9

-1.4

-2%

89.9

89.4

-0.4

-1%

Investment expenses

4.6

2.6

-1.9

-42%

Operating expenses

22.3
12.2
6.4

22.7
12.3
7.0

+0.3
+0.0
+0.6

+2%
+1%
+9%

Insurance claims and otherpayments
Provision for policy reserveand others

+1%
12.2

FY2007
1Q

Ordinary profit
Net income

Sony Life

Ordinary revenues fell but ordinary profit rose compared to FY07.1Q
New policy amount rose 3% compared with FY07 1Q
Income from insurance premiums increased, in line with steady
growth in policy amount in force
As for investment income, interest and dividend income increased ingeneral account assets
Core profit amounted to ¥9.3 billion
The lapse and surrender rate rose 0.03 percentage point year on
year, to 1.59%
Note: Each figure for new policy amount, policy amount in force and lapse andsurrender rate is calculated as the total of individual life insurance andindividual annuities.
The lapse and surrender rate is calculated without offsetting policies thatare reinstated.

(Billions of yen)

07.6.30

08.3.3108.6.30

Change from 08.3.31

Securities

2,425.5

2,388.9

2,428.3+39.3

Policy reserve

3,178.8

3,375.0

3,462.6

+87.5

+3％

Total net assets

216.1

182.6

168.7

-13.8

- 8％

3,522.5

3,659.7

3,724.5

+64.7

+2％

348.9

321.7

336.8

+15.1

+5％

Total assets
Of which, Separate account assets+2％

The figures above are on a non-consolidated basis.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

Sony Life’s ordinary revenues decreased 2% from the same period of theprevious fiscal year, to ¥190.8 billion, as gains on separate accounts (net)decreased due to the financial market downturn, despite increased income frominsurance premiums associated with a higher policy amount in force.
Ordinary profit rose 1% year on year, to ¥12.3 billion, as increases in income
from insurance premiums and in interest and dividend income more than offset
the decrease in gains on sale of securities.
Income from insurance premiums grew 3% from the same period of the previous
fiscal year, to ¥162.5 billion, associated with a higher policy amount in force.
Investment income decreased 20% to ¥27.5 billion, due to a decrease in gains
on separate accounts (net), despite a rise in interest and dividends income
associated primarily with a higher balance of securities held, mainly Japanese
government bonds.
Investment expenses fell 42% year on year, to ¥2.6 billion, associated withdecreased losses on general accounts. As a result, net investment profit declined
16% to ¥24.8 billion.
Insurance claims and other payments decreased 24% to ¥60.9 billion.
Operating expenses increased 2% to ¥22.7 billion.
As a result, net income grew 9% year on year, to ¥7.0 billion.

Overview of Performance:
Sony Life (Non-Consolidated)(Billions of yen)

972.4
15.8

1,004.2
16.2

Percentagechange
+3%
+2%

3.4

FY2007 1Q
New policy amount*1
Annualized premiums from new policies*1

FY2008 1Q

Investment profit

29.7

3.5
24.8

+1%
-16%

Core profit

7.0

9.3

+33%

Of which, third-sector products

Negative spread
Lapse and surrender rate*1,*2

8.1

6.1

-25%

1.56%

1.59%

+0.03pt(Billions of yen)

07.6.30

08.3.3108.6.30

Change from07.6.30

30,592.2

31,497.3

31,833.2+1,239.9+4%

Annualized premiums from insurance in force*1

510.9

530.0

536.0

+25.1

+5%

Of which, third-sector products

119.3

122.8

123.6

+4.2

+4%

Policy amount in force*1

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Notes:*1 Each figure of new policy amount, annualized premiums from new policies, policy amount in force, annualized premiums from insurance in force and lapse andsurrender rate is calculated as the total of individual life insurance and individual annuities.
*2 The lapse and surrender rate is calculated without offsetting policies that are reinstated.

55Sony Life Operating Performance (1)(Billions of yen)

Policy Amount in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

Policy amount in force(Trillions of yen)40

Number of policies in force

+7.1%

4.21

4.43

+1.9%

4.52
31.8

31.4

30.5

(Millions of policies)

+1.1%

30

(Billions of yen)

5600

Annualized premiums from insurance in force
Of which, third-sector products

510.9
4

500

536.0

530.0
+4.9%
+1.1%

+4.1%
3
20

400

300

2
200

+3.5%

10
1

0

0
07.6.30

08.3.3108.6.30

Line item amounts are truncated below ¥100 billion; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

+0.6%
100

119.3

122.8

123.6

07.6.30

08.3.3108.6.300Line item amounts are truncated below ¥100 million.

6

Sony Life Operating Performance (2)New Policy Amount

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)(Billions of yen)(Billions of yen)(Thousands of policies)
New policy amount

1200
1000

Number of new policies

142

20

+8.3%

of which, third-sector products

+2.0%

150

15.8

131
972.4

Annualized premiums from new policies

1,004.2

16.2

15

+3.3%
100

800

10
600
50

400

5

200

3.4

0

0

FY07.1Q

FY08.1Q

Line item amounts are truncated below ¥100 million; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

+0.9%

3.5

0
FY07.1Q

FY08.1Q

Line item amounts are truncated below ¥100 million.

7

Sales of death-protection type insurance, such as term life insurance, wererobust during the first quarter of FY2008.

Sony Life Operating Performance (3)Income from Insurance Premiums(Billions of yen)

Ordinary Profit (Non-Consolidated)(Billions of yen)

200

40

+2.8%
158.1

162.5

150

30

100

20

12.2
50

+0.7%

12.3

10

0

0
FY07.1Q

FY08.1Q

FY07.1Q

FY08.1Q

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

8

Income from insurance premiums grew 2.8% from the same period of theprevious fiscal year, to ¥162.5 billion, associated with a higher policy
amount in force.
As mentioned earlier, Sony Life’s ordinary profit, on a non-consolidated
basis, rose 0.7% year on year, to ¥12.3 billion, as increases in income frominsurance premiums and in interest and dividend income more than offset
the decrease in gains on sale of securities.

Sony Life Operating Performance (4)Core Profit

Negative Spread(Billions of yen)(Billions of yen)

30

40

37.3

30

26.7

20

20

+32.8%
10(for the 1st quarter)

9.3

7.0

10

0

8.1

-24.7%
6.1

0

FY07.1Q

FY08.1Q

FY06

FY07

FY07.1Q

FY08.1Q

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

9Core profit rose 32.8% compared with the same period of the previous fiscal yearto ¥9.3 billion, as a result of increases in income from insurance premiums andinterest and dividend income.
Negative spread improved 24.7% compared with the same period of the previous
fiscal year to ¥6.1 billion, owing to an increase in interest and dividend income.

Sony Life Operating Performance (5)Lapse and Surrender Rate*

Solvency Margin Ratio(Individual Life Insurance + Individual Annuities)（％）

Lapse and Surrender Rate (full-year)
Lapse and Surrender Rate (1Q)

（％）

10

2,000

1,852.0
1,747.9

1,685.6

1,500

8
6.32

6

5.84

5.79

6.12
1,000

4
500

1.56

2

1.59
0

0
FY04

FY05

FY06

FY07

FY08

07.3.3108.3.3108.6.30* The lapse and surrender rate is calculated without offsetting policies that are reinstated.

10

The lapse and surrender rate was up 0.03 percentage point compared withthe same period of the previous fiscal year to 1.59%, maintaining a low
level.

Sony Life Operating Performance (6)Breakdown of General Account Assets
Japanese government and corproate bonds
Japanese stocks
Foreign government and corporate bonds

51.6%

52.8%

50.9%

Foreign stocks
Monetary trusts
Policyholder loans
Real estate
Cash and call loans

8.0%
3.9% 0.7%

5.2%
4.6%
0.7%

5.3%
4.7%
0.8%

23.9%

26.8%

27.5%

3.1%

2.7%
2.7%
2.3%

Total
(billions of yen)

3.3%

2.5%
2.5%
2.9%

Other
Notes:
Japanese stocks and convertible bonds (CBs) in generalaccount assets as of June 30, 2008 are as follow;

3.3%

2.4%
2.6%
2.5%

07.6.30

08.3.3108.6.30¥3,173.6¥3,337.9¥3,387.6*Figures in brackets, ( ), are as of June 30, 2007

Japanese stocks: ¥217.1 billion (¥310.1 billion)
Of which, Japanese stocks in monetary trusts:¥35.9 billion (¥54.9 billion)
Accounting for 6.4% (9.8%) of the total general accountassetsCBs: ¥431.9 billion (¥418.7 billion)
Of which, CBs in monetary trusts: ¥141.6 billion (¥125.0
billion)Accounting for 12.8% (13.2%) of the total general accountassets11

This is a breakdown of Sony Life’s general account assets as of June 30,
2008, compared with that of June 30, 2007, and March 31, 2008.
Japanese stocks, including those in the category of “monetary trusts”
accounted for 6.4% of total general account assets as of June 30, 2008,
while convertible bonds, that are included both in the category “Japanese
government and corporate bonds” and in the category “monetary trusts”
accounted for 12.8% of total general account assets.

Sony Life Operating Performance (7)Unrealized gains/losses on securities
in general account assets(Billions of yen)

08.3.31

Japanese government and corporate
bonds

39.4

83.4

28.9

-54.5

Japanese stocks

141.7

50.8

63.2

+12.3

Foreign securities

7.7

(9.5)

(5.8)

+3.6

Other securities

7.5

3.0

3.8

+0.8

196.5

127.8

90.1

-37.6

Total

08.6.30

Change from08.3.3107.6.30

Line item amounts are truncated below ¥100 million.

12Sony Life Operating Performance (8)Adjusted net worth
for calculating Embedded Value(Billions of yen)
400

（Adjusted net worth for EV is calculated as follows）
Adjusted net worth＝(a) Total net assets in the balance sheets300（excluding net unrealized gains on bonds except for convertible

277.4
+19.2

214.0

194.8

200

100

0
07.6.30

08.3.3108.6.30and certain other bonds）＋(b) Reserve for price fluctuations＋(c) Contingency reserve＋(d) Reserve for possible loan losses＋(e) Net unrealized gains on land－(f) Unfunded employees’ retirement benefits liability－(g) Deferred tax assets for (b), (c), (d), (e), and (f).

Embedded value (EV) is calculated as the sum of theabove-mentioned “adjusted net worth” and “value of inforce business,” the present value of future profits on inforce business. EV is regarded as one of indices used forassessing the corporate value of a life insurancecompany.

Line item amounts are truncated below ¥100 million.

13

We disclose Sony Life’s embedded value, or EV, once a year at each fiscal
year-end, while we disclose adjusted net worth, one component of EV, ona quarterly basis.
As of June 30, 2008, adjusted net worth was up ¥19.2 billion from March
31, 2008, to ¥214.0 billion, owing mainly to a capital increase of ¥10.0
billion in May, 2008, and an increase in net unrealized gains on othersecurities, net of taxes.

Sony Life Operating Performance (7)Number of Sales Employees

Number of Independent Agents(incl. Lifeplanner sales employees)（persons）

5000（agents）

Number of sales employeesof which, Lifeplanner sales employees
4,232

4,248

3,759

3,779

+21

3000

4,269

4000

2,129
+14

3,793

2,151

2,091
- 60

2000

3000

2000

1000
1000

0

0
07.6.30

08.3.3108.6.30

07.6.30

08.3.3108.63014

Highlights of Operating Performance:
Sony Assurance(Billions of yen)
Ordinary revenues

14.1

Ordinary profit+11%

FY20071Q

FY2008
1Q

14.1

15.7

+1.5

+11%

14.0

15.5

+1.5

+11%

Ordinary revenues
Underwriting income

15.7

Investment income

0.1

0.1

+0.0

+13%

Ordinary expenses

13.5

15.2

+1.6

+13%

10.2

11.4

+1.2

+12%

-

-

-

-

3.2

3.7

+0.5

+5%

0.6
0.4

0.4
0.3

-0.1
-0.1

-23%
-35%

0.4

0.2

-0.1

-34%

Underwriting expenses
Investment expenses

0.6

Operating, general andadministrative expenses

-23%
0.4
(Billions of yen)

Ordinary profit
Underwriting profit

FY07.1Q

FY08.1Q

Net income

Sony AssuranceOrdinary revenues increased but ordinary profit dropped
compared with FY07.1Q
Ordinary revenues grew 11% year on year. Net premiums written
amounted to ¥15.5 billion, owing to an increase in the number ofpolicies in force for mainstay automobile insuranceOrdinary profit declined due to increased operating expenses
Combined ratio rose 2.4 percentage points, to 75.9% due to a
year-on-year rise in both of net expense ratio and net loss ratio.

Change(Billions of yen)

07.6.30

08.3.3108.6.30

Underwriting reserves

38.5

42.7

45.5

Total net assets

13.7

15.3

15.6

Total assets

69.6

78.6

81.4

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

15

Sony Assurance’s ordinary revenues increased 11.0% compared with thesame period of the previous fiscal year, to ¥15.7 billion, primarily due tofavorable performance in its mainstay automobile insurance, which raised
net premiums written.
Ordinary profit decreased 23% year on year, to ¥0.4 billion, owing
primarily to an increase in operating expenses.
As a result, net income declined 34% compared with the same period of
the previous fiscal year, to ¥0.2 billion.

Overview of Performance: Sony Assurance(Billions of yen)

FY2007 1Q

FY2008 1Q

ChangeDirect premiums written

13.9

15.4

+11%

Net premiums written

13.9

15.5

+11%

6.0

6.8

+13%

Net loss ratio

48.6%

49.8%

1.2 pt up

Net expense ratio

24.9%

26.1%

1.2 pt up

Combined ratio

73.5%

75.9%

2.4 pt up

0.3

-35%

Net losses paid

Underwriting profits

0.4

Net expense ratio is equal to the ratio of total underwriting costs to net premiums
writtenLine item amounts are truncated below ¥100 million; percentage change
figures are rounded.

Net loss ratio is equal to the ratio of net losses paid an loss adjustment expenses
to net premiums written.

Number of policies in force

07.6.30

08.3.3108.6.30

Change from 07.6.30

0.96 million

1.02 million

1.06 million+0.10 million+ 10%

The number of policies in force is the total of automobile insurance and medical and cancer insurance,
which accounts for 99% of net premiums written. These numbers are truncated below 10,000 policies.

1616

Sony Assurance’s Performance of Underwritingby type of policy
Net premiums written

Direct premiums written(millions of yen)

FY07 1Q

FY08 1Q(millions of yen)

Change

Fire

56

68

＋22％

Marine---FY07 1Q

FY08 1Q

Change

Fire

3

3

+3％

Marine

10

9

- 8％

Personal accident

1,546

1,630

＋5％

Personal accident

1,563

1,720

+10％

Voluntary automobile

12,355

13,742＋11％

Voluntary automobile

12,303

13,690+11％-

Compulsory
automobile liability

Compulsory
automobile liability
Total

13,95815,441

＋11％

Total

113

105

- 7％

13,994

15,529+11％

Net losses paid
(millions of yen)

FY07 1Q

FY08 1Q

Change

Fire

0

0

- 63％

Marine

5

3

- 27％

275

303

+10％

5,681

6,436

+13％

104

116

+11％

6,067

6,859

+13％

Personal accident
Voluntary automobile
Compulsory
automobile liability
Total

17

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force(Billions of yen)

Ordinary Profit(Millions of policies)
Otherspersonal accident insurance
Voluntary automobile insurance
Number of policies in force

20(Billions of yen)
1

1.06

0.96

0.1

13.9
1.5

+10.4%

1

15.5+11.0%

1.7

0.1

0.6

0.4

0.5

10

12.3

13.6

FY07.1Q

FY08.1Q

0.5

00-23.5%The number of policies in force is the total of automobile insurance and medical
and cancer insurance, which accounts for 99% of net premiums written. Most
personal accident insurance is medical and cancer insurance.
Line item amounts are truncated below ¥100 million for net premiums written andtruncated below 10,000 for the number of policies in force.

0

FY07.1Q

FY08.1Q

Line item amounts are truncated below ¥100 million.

18

As mentioned earlier, ordinary profit decreased 23.5% year on year, to¥0.4 billion, owing primarily to an increase in operating expenses.

Sony Assurance Operating Performance (2)Combined ratio(Net expense ratio + Net loss ratio)
Net expense ratio（％）

Net expense ratio +Earned/Incurred loss ratio（％）

Net loss ratio

100(for the 1st quarter)

80

79.9

80.3

53.6

53.5

73.5

75.9

Earned/Incurred loss ratio

48.6

89.9

89.0

87.7

89.0

63.6

62.3

62.8

62.9

26.7

24.9

26.1

FY07

FY07.1Q

FY08.1Q

80

60

60
49.8

40

40

20

Net expense ratio

100

26.3

20
26.7

24.9

26.1

FY07

FY07.1Q

FY08.1Q

26.3

0

0
FY06

Net expense ratio is equal to the ratio of total underwriting costs to net
premiums written
Net loss ratio is equal to the ratio of net losses paid and loss adjustment
expenses to net premiums written.

FY06

Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid,
loss adjustment expenses and accumulation in provision for reserve foroutstanding losses to earned premium.
*Note that earthquake insurance and compulsory automobile liability
insurance are excluded from the above calculation.

19

Owing primarily to higher loss adjustment expenses, the net loss ratio rose
1.2 percentage point compared with the same period of the previous fiscal
year, to 49.8%. The net expense ratio rose 1.2 percentage point year on
year, to 26.1%, owing to an increase in system-related expenses, which
exceeded impacts resulting from operational efficiency improvement.
As a result, underwriting profits declined 35.3% year on year, to ¥0.3
billion, and the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 2.4 percentage points year on year, to 75.9%.
To help you understand the actual condition of Sony Assurance, which has
been in growing stage, the combined ratio calculated by using theearned/incurred loss ratio, instead of net loss ratio, is shown in the righthand.
You may find formulas of both earned/incurred loss ratio and net loss ratioon the slide. Although net loss ration incresed, the earned/incurred loss
ratio in FY08.1Q was almost flat compared to that of FY07.1Q due to adecrese of loss adjustment expenses, and there were no significant
fluctuations when compared with those in FY06 and FY07.
Therefore the decrease of ordinary profit in FY08.1Q is owing to a rise in
the net expense ratio.

Highlights of Operating Performance:
Sony Bank (Non-Consolidated)
FY20071Q

FY20081Q

Ordinary revenues

5.3

8.6

+3.2

+61%

Gross operating profit

2.4

3.6

+1.1

+45%

1.3

1.0

-0.2

-17%

0.06

0.006

-0.06

-90%

1.0

2.5

+1.4

+129%

(Billions of yen)
Ordinary revenues

Ordinary profit

8.6
+61%

Net interest income

5.3

+151%

Net fees andcommissions
Net other operating
incomeGeneral and administrative
expenses

1.2

0.5

FY07.1Q

FY08.1Q(Billions of yen)Sony BankBoth of ordinary revenues and ordinary profit increased,compared with FY07.1Q
Net interest income and net other operating income increased,associated with business expansion.
Gross operating profit totaled ¥3.6 billion; the sum of net interest
income of ¥1.0 billion, net fees and commissions of ¥6.0 million
and net other operating income of ¥2.5 billion.
Net income amounted to ¥0.7 billion, up 0.2 billion year on year.
Customer assets were up ¥99.3 billion from March 31, 2008, to¥1,346.7 billion

Change

1.9

2.3

+0.3

+18%

Ordinary profit

0.5

1.2

+0.7

+151%

Net income

0.5

0.7

+0.2

+48%

Net operating profit

0.5

1.2

+0.7

+148%

（
億
円
Securities ）(Billions of yen)

07.6.30

08.3.3108.6.30

360.9

488.7

Loans

303.1

347.0

372.6

Deposits

796.5

1,144.3

1,241.2

Customer assets

901.9

1,247.3

1,346.7

Total net assets

37.2

35.7

41.3

Total assets

871.2

1,211.0

1,312.4

11.21%

9.15%

10.20%

Capital adequacy ratio(domestic criteria)

613.8

Line item amounts are truncated below ¥100 million; percentage change figures
are rounded.

20

Sony Bank’s ordinary revenues increased 61% compared with the same
period of the previous fiscal year, to ¥8.6 billion, as a higher balance ofinvestment assets and other factors, in line with the bank’s businessexpansion, led to higher net interest income and net other operating
income.
Owing to an increase in gross operating profit, ordinary profit increased
151% compared with the same period of the previous fiscal year, to ¥1.2
billion.
As a result, net income increased 48% year on year, to ¥0.7 billion.

20

Overview of Performance:
Sony Bank (Non-Consolidated)(Billions of yen, thousands of accounts)

Change from 08.3.31
07.6.30

08.3.3108.6.30

Amountor number

%

901.9

1,247.3

1,346.7

+99.3

+8%

796.5

1,144.3

1,241.2

+96.8

+8%

Yen deposits

674.4

892.6

988.6

+96.0

+11%

Foreign currency
deposits

122.1

251.7

252.5

+0.8

+0%

105.3

102.9

105.4

+2.5

+2%

303.1

347.0

372.6

+25.5

+7%

296.0

338.8

364.4

+25.5

+8%

7.0

8.1

8.1

-0.0

- 0%

507

610

640

+30

+5%

Customer assets
Deposits

Investment trusts
Loan
Mortgage loans
Other loans
Number of accounts

Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

21

Sony Bank Operating Performance (1)Customer Assets (Deposits + Investment Trusts)
and Number of Accounts
Yen deposits
Foreign currency deposits
Investment trusts

640

Mortgage loans(Billions of yen)

Number of accounts(Billions of yen) (thousand)
610

1,400

Loans
Others400

372.6

1,346.7507

1,200

Investment
trusts:¥105.4 billion

300

1,000

Foreigncurrency
deposits:¥252.5 billion

Yen deposits:¥988.6 billion

200

1,247.3

901.9
800

Others:¥8.1
billion

347.0
303.1

Mortgageloans:¥364.4billion

600

100

400

200

0

0
6/30/07

3/31/08

6/30/08

6/30/07

3/31/08

6/30/08

Amounts are truncated below ¥100 million.

22

As of June 30, 2008, the balance of customer assets (the total of deposits
and investment trusts) was up ¥99.3 billion, or 8.0%, compared with March
31, 2008, to ¥1,346.7 billion, largely owing to an increase in yen time
deposits.
Total deposits were up ¥96.8 billion, or 8.5%, to ¥1,241.2 billion.
Investment trusts expanded ¥2.5 billion, or 2.4%, to ¥105.4 billion.
Loans also increased steadily by ¥25.5 billion, or 7.4%, to ¥372.6 billion.
The number of accounts grew rapidly, rising 30 thousand to 640 thousandaccounts.

Sony Bank Operating Performance (2)Gross Operating Profit, General and
Administrative Expenses, Ordinary Profit（％）(Billions of yen)5

Non-consolidated Capital Adequacy Ratio(Domestic Criteria)

Gross operating profit

20

General and administrative expenses
Ordinary profit

4

3.6
15

3

11.21
2.4

2.3

10.20
9.15

10

2

1.9
1.2

5

1

0.5
0

0
FY07.1Q

FY08.1Q

6/30/07

3/31/08

6/30/08

Notes: Capital adequacy ratios as of June 30, 2007, March 31, 2008, and June 30, 2008
were calculated based on the standard stipulated in the Financial Services Agency
Public Announcement No. 19 of 2006.

Amounts are truncated below ¥100 million.

23

Looking next at profitability, gross operating profit increased 45.3% year on
year to ¥3.6 billion.
Breaking down gross operating profit, net interest income decreased
16.9% to ¥1.0 billion, due to higher interest on deposits. Net fees andcommissions fell 90.1%, to ¥6 million, owing primarily to a decrease in fees
and commissions received on securities-related business. Net otheroperating income rose 129.1%, to ¥2.5 billion, owing to increased income
from foreign exchange transactions derived from investment in foreign
currency deposits.
Non-consolidated capital adequacy ratio (domestic criteria) as of June 30,
2008, was 10.20%, continuing to indicate a sound financial base.

Consolidated Operating Performance
Forecast for FY2008(Billions of yen; line item amounts are truncated below ¥100 million; changes are rounded) Additional Information
FY2004 FY2005 FY2006 FY2007

FY2008FY2008(Interim
forecast)(Full-year
forecast)% change

Consolidated ordinary revenues

653.2

758.7

759.2

822.1

430.0

884.0

+ 7.5%Of which, life insurance business
Of which, non-life insurance business
Of which, banking business

604.0

696.4

689.5

741.3

386.0

793.0

+ 7.0%

38.1

45.7

51.0

55.6

30.0

59.8

+ 7.5%

11.3

17.2

19.4

25.9

14.4→ 15.8 30.7→33.0+ 27.4%

Consolidated ordinary profit

12.2

25.3

18.3

44.5

18.0

37.0

-16.9%Of which, life insurance business
Of which, non-life insurance business
Of which, banking business

17.0

24.3

14.8

39.0

17.0

34.0

-13.0%

(2.8)

(0.7)

2.0

2.8

0.6

1.3

-53.9%

(1.6)

2.2

1.3

2.4

0.5→1.3

1.3→2.0-16.7%

Consolidated net income

6.3

11.5

10.0

24.2

10.0

21.0

-13.4%

Consolidated Ordinary Revenues(Billionsof yen)Banking business
Non-life insurance businessLife insurance business

758.7

759.2

We expect ordinary revenues tocontinue increasing, owing to the robust
expansion of each business. However,ordinary profit is expected to decrease,for the reasons described below.
■ Life insurance business
The yield on general accountinvestments is expected to fall,compared with FY2008.
■ Non-life insurance business
The operating expense ratio is expected
to rise slightly, owing to higher systemrelated expenses.
■ Banking business
Expenses are expected to increase:system-related and other expenses are
expected to increase, Sony Bank
Securities is expected to operate in the
red initially, and goodwill will beamortized, among other factors.

Consolidated Ordinary Profit

884.0(Billions of yen)

822.1

Banking business
Non-life insurance businessLife insurance business

44.5

37.0

653.2
25.3
(Forecast)

12.2

18.3
(Forecast)

24

Sony Financial Holdings’ forecast for consolidated operating performance
during the fiscal year ending March 31, 2009, is unchanged from theannouncement on May 14, 2008.
As explained earlier, all of our businesses made steady business growth.
As for the banking business, grater than expected actual results in the firstquarter of fiscal 2008 led us to revise upward our forecast for ordinary
revenues and ordinary profit in the business, as the chart shows.
However, as we consider the impact of the upward changes in the banking
business forecast insignificant on a consolidated basis, we did not revise
the consolidated forecast.

24

Other topics
Sony Life received permission to conduct banking agency business on behalf of Sony Bank
 Started January 16, 2008
 Products and services handled by Sony Life
1. Lifeplanner sales employees may explain the details of Sony Bank’s mortgage loans and deliver applications.
→As a result, Sony Bank’s mortgage loans handled by Lifeplanner sales employees expanded steadily andaccounted for approximately 30% of new mortgage loans in FY08.1Q.
2. At Life Planning SQUARE, the showroom Sony Life operates in the Sony Building in Ginza, Tokyo, Sony Lifemay handle Sony Bank’s mortgage loans, as well as set up new customer accounts at Sony Bank.

Major press releases announced during and after FY08.1Q
April 21, 2008

Sony Bank started “Carbon Offsetting Investment Trust” offering scheme

April 23, 2008

SFH raised capital of Sony Bank

April 28, 2008

Sony Assurance started selling automobile insurance via bank’s website

May 12, 2008

Sony Bank started foreign exchange margin transactions

May 23, 2008

SFH raised capital of Sony Life

July 1, 2008

Sony Assurance opened its Sapporo Claims Service Center for receiving accident reports

July 30, 2008

Sony Bank started distribution of its foreign exchange rates through the AppliCast Function
on BRAVIA LCD televisions

August 1, 2008

Seven Bank started a banking agency business on behalf of Sony Bank

August 4, 2008

Sony Bank revised sales commission structure for investment trusts and introduced salescommission reduction program for funded plans

Lastly, as synergetic initiatives, Sony Bank’s mortgage loans handled
through Sony Life’s Lifeplanner sales employees accounted forapproximately 30% of new mortgage loans in FY08.1Q.
Sony Life’s receipt of permission to conduct banking agency business onbehalf of Sony Bank has enabled its Lifeplanner sales employees to
respond in a more detailed manner to customers’ requests and questions on
financing in purchase of homes during their consultations. The ratio
mentioned earlier increased as a result.

Contact:
SFH

Corporate Communications & Investor Relations Department
Sony Financial Holdings Inc.
TEL： +81-3-5785-1074

26

Contacts

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