Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2011

Sony Financial Holdings Inc.
February 14, 20121

Content■Consolidated Operating Results for the Nine Months Ended December 31, 2011

P.3

■Consolidated Financial Forecast for the Year Ending March 31, 2012

P.27

■ Appendix

P.29

Disclaimers:
This presentation material contains 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 performanceand that 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,” and “possibility” that describe future
operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, arebased 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 to place 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.

2

Content2

Consolidated Operating Results for
the Nine Months Ended December 31, 20113

3

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2011 (1)(Billions of yen)

Ordinary revenues+5.4%

Ordinary profit

786.3

746.0

669.4

703.9

+34.5

+5.2%

ChangeOrdinary revenues
Ordinary profit

65.3

49.5

(15.7)(24.2%)

Non-life
insurancebusiness

Ordinary revenues

55.6

60.1

+4.5

+8.2%
(26.9%)

2.3

1.6

(0.6)

22.4

23.8

+1.4

+6.4%

1.5

2.5

+0.9

+63.1%

(1.4)

(1.5)

(0.1)

-

0.1

0.0

(0.0)

(32.0%)

746.0

786.3

+40.3

+5.4%

Ordinary profit

69.3

53.8

(15.4)(22.3%)Net income

38.3

22.6

(15.6)(40.9%)

Ordinary profit
Ordinary revenues
Ordinary profit(22.3%)
Intersegment
adjustments*

53.8

Ordinary revenues
Ordinary profit
Ordinary revenues

Consolidated

FY10.3Q (9M)

FY11.3Q(9M)

Life
insurancebusiness

Bankingbusiness

69.3

FY10.3Q(9M)

FY11.3Q (9M)(Billions of yen)(Billions of yen)

10.12.31

11.3.31

11.12.31

Change from 11.3.31

Total
assets6,435.9

6,597.1

6,980.7+383.6

+5.8%

301.1

294.8

328.4

+33.5

+11.4%

Consolidated
Net assets*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY10.3Q (9M): ¥38.2 billion, FY11.3Q (9M): ¥40.9 billion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

During the nine months ended December 31, 2011, consolidated
ordinary revenues grew 5.4% compared with the same period of
the previous fiscal year, to ¥786.3 billion, owing to increases inordinary revenues from the all businesses: life insurance, non-life
insurance and banking.
Consolidated ordinary profit decreased 22.3% year on year, to¥53.8 billion. By business segment, ordinary profit from the life
insurance and the non-life insurance businesses decreased,
whereas ordinary profit from the banking business increased year
on year.

Consolidated net income was down 40.9% year on year, to ¥22.6
billion due to a decline in consolidated ordinary profit and anincrease in deferred income taxes of ¥6.6 billion stemming from areversal of deferred tax assets owing to the newly promulgatedlaws associated with the reduction in the corporate tax rate.

4

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2011 (2) Life Insurance: Ordinary revenues increased year on year, due to higher income from insurance

premiums associated with steady growth in the policy amount in force. Ordinary profit decreased, due
to lower gains on sale of securities, reflecting the process of shifting bond holdings to ultralong-termbonds to reduce interest rate risk, whereas insurance claims and other payments relating to the Great
East Japan Earthquake were lower than our estimates as of the end of the previous fiscal year.
 Non-life Insurance: Ordinary revenues increased year on year, owing to an increase in net premiums

written, as the number of insurance policies in force grew primarily for automobile insurance. Ordinary
profit decreased due primarily to a rise in the loss ratio for automobile insurance as well as a higher
expense ratio resulting from an increase in system-related expenses.
 Banking: Ordinary revenues increased year on year due to an increase in net fees and commissions

resulting from Sony Bank’s acquisition of a 57% equity interest in SmartLink Network, Inc. on July 1,
2011 as consolidated subsidiary. Ordinary profit increased due to a rise in gross operating profit,
resulting from an increase in net interest income. The net interest income increased because of higher
interest income on loans led primarily by the growing balance of mortgage loans and a decrease ininterest expenses on yen deposits.
 Consolidated ordinary revenues increased 5.4% year on year, to ¥786.3 billion, however, consolidated

ordinary profit decreased 22.3%, to ¥53.8 billion. Net income decreased 40.9%, to ¥22.6 billion. The
deferred income taxes increased ¥6.6 billion, resulting from the reversal of deferred tax assets owing
to the newly promulgated laws associated with the reduction in the corporate tax rate.
In October 2011, SFH issued ¥10 billion in bonds and transferred the funds raised through this issue
to Sony Bank as a loan aimed at reinforcing that company’s financial base.

5

Here is highlights of consolidated operating performance.

5

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

Ordinary profit

FY10.3Q(9M)(Billions of yen)
Ordinary revenues

703.8

+5.2%

669.1

703.8

+34.6

Income from insurance premiums

565.5

602.0

+36.5

+6.5%

Investment income

94.7

83.5

(11.1)(11.8%)

Interest income and dividends

64.4

72.5

+8.0

+12.5%

Income from monetary trusts, net

5.6

3.9

(1.7)

(30.0%)(71.3%)

Gains on sale of securities

66.1
50.5

FY11.3Q (9M)(Billions of yen)Ordinary revenues increased but ordinary profit decreased
year on year.
Income from insurance premiums increased due to a steadyincrease in the policy amount in force.
Investment income decreased due to lower gains on sale ofsecurities, although interest income and dividends increased.
Ordinary profit decreased due to lower gains on sale of securities,
whereas insurance claims and other payments relating to theGreat East Japan Earthquake were lower than our estimatesas of the end of the previous fiscal year.

+5.2%

24.5

7.0

(17.5)

603.0

653.3

+50.2

+8.3%

Insurance claims and other payments

209.7

216.4

+6.6

+3.2%

Provision for policy reserves and others

285.4

314.9

+29.4

+10.3%

Investment expenses

21.3

29.8

+8.4

+39.6%

Losses on sale of securities

0.8

1.8

+1.0

+123.0%Losses on separate accounts, net

13.1

18.7

+5.6

+42.9%

73.2

77.6

+4.4

+6.1%

Ordinary profit

66.1

50.5

(15.6)(23.6%)Net income

37.1

22.2

(14.8)(40.1%)

Operating expenses

FY10.3Q (9M)

Change669.1

Ordinary expenses(23.6%)

FY11.3Q(9M)

10.12.31

11.3.31

11.12.31

Securities(Billions of yen)

3,921.2

4,017.5

4,349.4+331.8

Policy reserves

4,256.7

4,371.4

4,686.4+314.9+7.2%

Total net assets

222.6

215.3

249.0

+33.6

+15.6%+291.5%Net unrealized gains onother securities
Total assets
Separate account assets

Change from 11.3.31
+8.3%

16.6

7.0

27.4

+20.4

4,593.0

4,723.3

5,038.0+314.6

+6.7%

381.7

398.1

397.4

(0.6)

(0.2%)

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

6

Highlights of Sony Life’s operating performance (non-consolidated basis)are shown here.
Sony Life’s ordinary revenues increased 5.2% year on year, to ¥703.8
billion. Income from insurance premiums increased owing to a steadyincrease in the policy amount in force.
Income from insurance premiums grew 6.5% from the same period of theprevious fiscal year, to ¥602.0billion.
Investment income decreased 11.8% year on year, to ¥83.5billion, mainly
due to lower gains on sale of securities on the process of shifting its bondholdings, which offset the positive impact of higher interest income anddividends in the general account assets.
Investment expenses increased 39.6% year on year to ¥29.8 billion, owing
to an increase in losses on separate accounts, net.
Ordinary profit decreased 23.6% year on year to ¥50.5 billion, owing tolower gains on sale of securities, whereas insurance claims and otherpayments relating to the Great East Japan Earthquake were lower than ourestimates as of the end of the previous fiscal year.
Consequently, net income was down 40.1% year on year, to ¥22.2billion,
due to a reversal of deferred tax assets associated with the reduction in
the corporate tax rate.

6

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

FY10.3Q(9M)

FY11.3Q(9M)

ChangeNew policy amount

3,229.3

3,227.1

Lapse and surrender amount

1,601.6

1,561.9(2.5%)

Lapse and surrender rate

4.79%

4.50%

(0.29pt)

Policy amount in force

34,519.935,807.9

+3.7%

53.9

53.1

(1.5%)

12.6

13.0

+2.8%

598.0

627.6

+5.0%

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

139.0

Of which, third-sector products(Billions of yen)

FY10.3Q(9M)

147.3
FY11.3Q(9M)

 Remained at the same level, due mainly to lower
sales of family income insurance, which is life
insurance with disability benefit, despite favorable
sales of term-life insurance.
 Decreased due to the lowering lapse andsurrender rates mainly in family income insurance,
which is life insurance with disability benefit.
 Decreased, due mainly to lower sales of
educational endowment insurance, despite
favorable sales of term-life insurance and living
benefit insurance.

+6.0%
ChangeGains from investment, net (General account)

86.4

72.5

Core profit

43.9

50.9

+15.9%

Negative spread

5.5

1.7

(69.1%)

10.12.31

11.3.31

11.12.31

Changefrom
11.3.312,971.9%

2,900.1%

3,147.8%+247.7pt

Solvency Margin Ratio(Reasons for changes)(0.1%)

 Decreased due to lower gains on sale of securities
on the process of shifting its bonds holdings
despite an increase in interest income anddividends.

(16.2%)

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as thetotal of individual life insurance and individual annuities.
*2 The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.

 Increased reflecting lower insurance payments for
the Great East Japan Earthquake of March 2011
than formerly expected, and a decline in negative
spread.

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

7

Here is an overview of Sony Life’s performance.

7

Sony Life Operating Performance (1)Number and Amount of New Policies

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount

Number of new policies

Annualized premiums from new policies

440

462

(1.8%)

454(0.1%)

3.22

60
3.5
3.0

Of which, third-sector(Thousands of policies) (Billions of yen)(Trillions of yen)

3.22
3.02

50

2.5

40

2.0

30

50.6

53.9

(1.5%)

53.1

1.5

20
1.0
0.5

+2.8%

10

12.2

12.6

13.0

FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)0Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

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

8(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities remained at the same level from a year earlier, amounting to¥3.22 trillion, due mainly to lower sales of family income insurance, which
is life insurance with disability benefit, whereas sales of term life
insurance increased.
The number of new policies decreased 1.8% year on year, to 454
thousand policies.
(Right-hand graph)
Annualized premiums from new policies decreased 1.5%, to ¥53.1 billion,
due mainly to lower sales of educational endowment insurance, whereas
sales of term life insurance and living benefit insurance increased.
Of which, third-sector insurance products increased 2.8% year on year, to¥13.0 billion, reflecting favorable sales of nursing-care and living benefit
insurance.

8

Sony Life Operating Performance (2)Number and Amount of Policies in Force

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

Policy amount in force

Number of policies in force

Annualized premiums from insurance in force

Of which, third-sector(Millions of policies)(Trillions of yen)
+6.3%

5.27

5.34

5.60

(Billions of yen)

+4.8%
+5.0%

+3.7%

34.5

627.6

604.7

598.0

+3.8%

35.8

34.7
+3.0%

+6.0%

139.0

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

140.7

+4.6%

147.3

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

9(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities grew steadily, to ¥35.8 trillion as of December 31,
2011, up 3.7% from December 31, 2010.
The number of policies in force increased 6.3% from December 31, 2010,
to 5.60 million policies.
(Right-hand graph)
Annualized premiums from total policies as of December 31, 2011, wereup 5.0% from December 31, 2010 totaling ¥627.6 billion. Of this amount,the figure for third-sector products was up 6.0% from December 31, 2010,
to ¥147.3 billion.

9

Sony Life Operating Performance (3)Lapse and Surrender Rate*

Solvency Margin Ratio(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate (Annual)（％）

Lapse and surrender rate (1H)（％）

Lapse and surrender rate (9M)

3,500

3,147.8
2,971.9
7.21(Annual)

3,000

2,900.1+247.7pt

6.41
5.31

(9M)

4.79

(0.29pt)

2,500

(1H)

3.27

3.11

2.95

2,000

1,500010.12.31*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

11.3.31

11.12.31

Note:
Legislation concerning the calculation of the solvency margin ratio has been revised fromthe standpoint of raising its credibility, and these new standards are to become effective asof the end of fiscal 2011 (March 31, 2012). The above-stated figures are calculated on theassumption that these changes are applied at March 31and December 31, 2011.
* New solvency margin ratio for Sony Life is also on P 34.

Percentage change figures are rounded

10(Left-hand graph)
The lapse and surrender rate for the nine months ended December 31,
2011 decreased 0.29 percentage point year on year, to 4.50%, due to thelowering lapse and surrender rates primarily for family income insurance,
which is life insurance with disability benefit.
(Right-hand graph)
As of December 31, 2011, Sony Life’s solvency margin ratio was
3,147.8%, up 247.7 percentage points from March 31, 2011.
The new solvency margin ratio is indicated for reference. The reasons forthe decrease from the current standard are a change of includable
amount for margin calculation and stricter risk measurement.

10Sony Life Operating Performance (4)Income from Insurance Premiums(Billions of yen)

Ordinary Profit(Billions of yen)

700
+6.5%

500

602.0

70

66.1

565.5

600

60

512.1

(23.6%)

54.9

50.5

50

400
40

300

30

200

20

100

10
0

0
FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)

FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)Line item amounts are truncated below ¥100 million; percentage figures are rounded.

1111

Sony Life Operating Performance (5)Negative SpreadCore Profit(Billions of yen)(Billions of yen)60

15

+15.9%

50

45.1

50.9
12.2

43.9
10

40

30

5.5
5

20

(69.1%)

1.7

10

0

0
FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)

FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)Line item amounts are truncated below ¥100 million; percentage figures are rounded.

12(Left-hand graph)Core profit increased 15.9% to ¥50.9 billion year on year, reflecting lower
insurance payments for the Great East Japan Earthquake ofMarch 2011 than formerly expected, and a decease in negative spread.
(Right-hand graph)
In line with the increase in interest income and dividends, the negative
spread declined 69.1% year on year, to ¥1.7 billion.

12Sony Life Operating Performance (6)Number of Lifeplanner Sales Employees(Number)Number of Independent Agents(Number)

2,500

2,089
(87)

2,072

2,064

2,060

2,000
(4)

1,500

0

1,000
0
10.3.3110.12.31

11.3.31

11.12.31* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

(Left-hand graph)
The number of Lifeplanner sales employees as of December 31, 2011,
was 3,930, down 87 from March 31, 2011.
The growth in the number of new recruits was relatively flat for the firsthalf of this fiscal year, affected by the Great East Japan Earthquake.
However, the number of new recruits recovered during the third quarter,
reaching a higher number than during the third quarter of the previous
fiscal year.
(Right-hand graph)
The number of independent agents decreased 4 from March 31, 2011, to
2,060.

13

Sony Life Operating Performance (7)Breakdown of General Account Assets
11.3.31<Asset management review>

11.12.31(Billions of yen)Amount%Amount%3,499.9

80.9%

3,833.8

82.6%

Japanese stocks

64.0

1.5%

45.6

1.0%

Foreign securities

44.2

1.0%

60.2

1.3%

Foreign stocks

30.0

0.7%

28.0

0.6%

Monetary trusts

276.4

6.4%

286.8

6.2%

Japanese governmentand corporate bonds

On the asset side, we lengthened the duration of
securities held to match the liability characteristics of
insurance policies with long-term maturities with theaim of reducing interest rate risk.
Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY11.

<Lengthened asset duration>
10.3.3117.6 years

11.3.3118.5 years

11.12.31

19.1 years

Policy loans

134.4

3.1%

137.6

3.0%

Real estate

75.1

1.7%

73.5

1.6%

Cash and call loans

80.0

1.9%

64.4

1.4%

■Investment in the monetary trusts are mainly into Japanese
government and corporate bonds.

Others

120.9

2.8%

110.3

2.4%

■The holding ratio on the real status, of Japanese government andcorporate bonds including those invested in monetary trusts in thegeneral account assets:

4,325.2

100.0%

4,640.5

100.0%

As of December 31, 2011: 88.8%, (As of March 31, 2011: 87.3%)

Total

14

Here is a breakdown of Sony Life’s general account assets as ofDecember 31, 2011, compared with March 31, 2011.
As Sony Life continued its investment in ultralong-term bonds, mainly
Japanese government and corporate bonds, their ratio rose to 88.8% asof December 31, 2011.
As a result of these efforts, Sony Life’s asset duration become 19.1 years
as of December 31, 2011.
Going forward, Sony Life will mitigate interest rate risk by investing most
new money acquired in ultralong-term bonds.

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

60.1
55.6

(Billions of yen)

FY10.3Q

FY11.3Q

(9M)

(9M)

+8.2%
Ordinary revenues
Underwriting income

1.6

2.3

60.1

+4.5

+8.2%

55.0

59.4

+4.4

+8.1%

0.5

0.6

+0.0

+14.0%

58.4

+5.1

+9.7%

Underwriting expenses

40.4

44.1

+3.7

+9.2%

Investment expenses

－

0.0

+0.0

－

Operating, general andadministrative expenses

12.7

14.2

+1.4

+11.2%

Ordinary profit

2.3

1.6

(0.6)

(26.9%)Net income

1.4

0.5

(0.8)

(62.9%)(Billions of yen)Ordinary revenues increased but ordinary profit decreased year onyear.
Ordinary revenues increased, due to an increase in net premiums
written led by a growing number of in-force policies primarily for
automobile insurance.
Ordinary profit decreased due mainly to a rise in the loss ratio for
automobile insurance as well as a higher expense ratio resulting
from an increase in system-related expenses.

55.6

53.2

Investment income
Ordinary expenses(26.9%)

Change10.12.31

11.3.31

11.12.31

Underwriting reserves

63.2

64.0

68.1

+4.0

+6.3%

Total net assets

16.9

16.7

17.3

+0.5

+3.2%

104.3

109.3

114.1

+4.8

+4.4%

(Billions of yen)

Total assets

Change from 11.3.31

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

15

Sony Assurance posted a 8.2% increase in ordinary revenues year on
year, to ¥60.1 billion, due to increased net premiums written, as thenumber of insurance policies in force grew in its mainstay automobile
insurance.
Ordinary profit decreased 26.9% year on year, to ¥1.6 billion due mainly
to a rise in the loss ratio for automobile insurance as well as a higher
expense ratio resulting from an increase in system-related expenses.

Net income decreased 62.9% year on year, to ¥0.5 billion due to areversal of deferred tax assets associated with the reduction in thecorporate tax rate.

15

Overview of Performance:
Sony Assurance(Billions of yen)

FY10.3Q(9M)(Reasons for changes)

FY11.3Q(9M)

Change Increased owing to an increase in the numberof policies in force for automobile insurance.

Direct premiums written

54.5

58.8

+7.7%

Net premiums written

54.9

59.4

+8.1%

Net losses paid

29.3

32.9

+12.4%

Underwriting profit

1.8

1.1

(38.9%)Net loss ratio

59.8%

61.8%

+2.0ptNet expense ratio

25.0%

25.5%

+0.5ptCombined ratio

84.7%

87.4%

+2.7ptNet expense ratio is equal to the ratio of total underwriting costs to net premiums written.

 Increased owing mainly to an increase in thenumber of policies in force for automobile
insurance, as well as rising unit cost of
insurance claims and the effect of natural
disaster.
 Increased due primarily to an increase insystem-related expenses.

 Increased due to an increase in the number ofpolicies in force for automobile insurance.

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

Number of policies in force
Solvency margin ratio

10.12.31

11.3.31

11.12.31

1.36 million

1.38 million

1.47 million

1,010.8%

981.4%

912.8%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

Change from 11.3.31+0.08 million+6.2%(68.6pt)

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

16

Here is an overview of Sony Assurance’s performance.

16

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written(Millions of yen)

Net Premiums Written

FY10.3Q

FY11.3Q

(9M)

(9M)

Change(Millions of yen)

Fire

120

118

(1.5%)

Marine－－－Personal accident*

5,339

5,517

+3.3%

Voluntary automobile

49,13653,177+8.2%

Compulsory
automobile liability
Total

－

－

－

54,59658,812

+7.7%

Fire

FY10.3Q

FY11.3Q

(9M)

(9M)

0

40

－
+856.3%

10

104

1,179

1,352

+14.7%

Voluntary automobile

27,63330,806+11.5%

502

647+28.8%

29,32632,951+12.4%

Compulsory
automobile liability
Total

(9M)

Change

Fire

5

68

Marine250－

Personal accident*

5,507

5,681

+3.2%

Voluntary automobile

48,934

52,978

+8.3%

543

647

+19.1%

54,99359,426+8.1%

Compulsory
automobile liability
Total

－

ChangePersonal accident*

MarineFY11.3Q(9M)*SURE, medical and cancer insurance is included in personal accident.

Net losses paid
(Millions of yen)

FY10.3Q

Line item amounts are truncated below ¥ 1 million;
Percentage change figures are rounded.

17

This slide shows direct premiums written, net premiums written and net
losses paid by type.

17

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force
Voluntary automobile insurance

Personal accident insurance

Number of policies in force

Other(Billions of yen)

+7.8%

1.47

(Millions of policies)

1.4

1.25

70

1.2

2.5

5.6

1

2

52.9

0.8

59.4
60
0.4

50

50.3

0.5

54.9

0.7

+8.1%

5.5

5.3

40
48.9

30

(Billions of yen)

3

1.36

80

Ordinary Profit

2.3(26.9)%

1.8

1.6

1.5
0.6

44.5

1
0.4

20

0.2

10

0

0
FY09.3Q(9M)

FY10.3Q(9M)

FY11.3Q(9M)The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

0.5

0FY09.3Q(9M)

FY10.3Q(9M)

FY11.3Q(9M)Line item amounts are truncated below ¥100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

18(Left-hand graph)
The number of policies in force for the total of automobile insurance andmedical and cancer insurance increased steadily, rising 7.8% year on
year, to 1.47 million policies.
Net premiums written posted a 8.1% year-on-year increase, to ¥59.4
billion.
(Right-hand graph)
Ordinary profit decreased year on year, as described in the previous
pages.

18

Sony Assurance Operating Performance (2)<Reference>

Net Expense Ratio +Earned/Incurred Loss Ratio
Earned/Incurred loss ratio

Combined Ratio(Net Expense Ratio + Net Loss Ratio)
Net loss ratio

Net expense ratio(%)

Net expense ratio

(%)

100

95.2

91.9

97.0

+3.6pt

91.0

93.4

100

85.6

83.3

81.8

87.4

84.7 +2.7pt

8080+3.1pt 71.5

+2.0pt

68.4
60

69.7

60

65.5

65.8

56.3

57.2

40

40

20

61.8

59.8

60.0

26.1

25.5

20

+0.5pt

25.5

25.0

25.5

FY10.3Q<9M>

FY11.3Q

0

26.1

25.5

+0.5pt

25.5

25.0

25.5

FY09.3Q

FY10.3Q<9M>

FY11.3Q

0

FY09

FY10

<1Y>

FY09.3Q

FY09

FY10

<1Y>

Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid, loss adjustment

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.

expenses and accumulation in provision for reserve for outstanding losses to earned premiums.

Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to*Note that earthquake insurance and compulsory automobile liability insurance are excluded

net premiums written.

from the above calculation.

19(Left-hand graph)
To help you understand the actual condition of Sony Assurance, which isin a growth phase, we show the earned/incurred loss ratio, which is theaccrual-basis loss ratio.
For the nine months ended December 31, 2011, the E.I. loss ratio
increased 3.1 percentage points year on year, to 71.5%, owing mainly torising unit cost of insurance claims and the effect of natural disaster.
The net expense ratio increased 0.5 percentage point, to 25.5%, due
primarily to an increase in system-related expenses.
(Right-hand graph)
The net loss ratio rose 2.0 percentage points compared with the same
period of the previous fiscal year, to 61.8%, due mainly to rising unit costof insurance claims and the effect of natural disaster.
This is different from the E.I. loss ratio, which reflects an increase or adecrease in provision for reserve for outstanding losses.
As a result, the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 2.7 percentage points year on year, to 87.4%.

19

Sony Assurance Operating Performance (3)Solvency Margin Ratio(%)<Reference>
New solvency margin ratio effective as of the end of FY11

1,010.8(68.6pt)

981.4

912.8

March 31, 2011 : 631.0%
December 31, 2011 : 585.7%
Variation factor from the previous standard :◆Stricter risk measurement

Note:
Legislation concerning the calculation of the solvency margin ratio
has been revised from the standpoint of raising its credibility, andthese new standards are to become effective as of the end of fiscal
2011 (March 31, 2012). The above-stated figures are calculated on
the assumption that these changes are applied at March 31, andDecember 31, 2011.

20

As of December 31, 2011, Sony Assurance’s solvency margin ratio was
912.8%, down 68.6 percentage points from March 31, 2011.
The new solvency margin ratio is indicated for reference. The reason forthe decrease from the current standard is the stricter risk measurement.

20

Highlights of Operating Performance:
Sony Bank (Non-consolidated)
Ordinary revenues

Ordinary profit(0.9%)

22.3(Billions of yen)

22.1

Ordinary revenues decreased but ordinary profit
increased year on year.
Gross operating profit increased ¥1.4 billion year on year due
mainly to an increase in net interest income.
- Net interest income increased ¥2.4 billion owing primarily to
an increase in interest income on loans and a decrease ininterest expenses on yen deposits.
- Net other operating income decreased ¥1.2 billion reflecting
a decrease in gains on foreign exchange transactions.
Net operating profit increased ¥0.7 billion owing to the abovementioned increase in gross operating profit . The increase ingross operating profit offset the negative impact of higher
general and administrative expenses led primarily by
personnel reinforcement of the full-scale entry into credit cardbusiness.
Customer assets increased ¥27.8 billion from March 31, 2011.
Among them, deposit balance increased ¥39.2 billion.

FY11.3Q(9M)

Change

22.3

22.1

(0.1)

(0.9%)

Gross operating profit

12.1

13.6

+1.4

+11.6%+25.7%

9.5

12.0

+2.4

Net fees and commissions(0.15)

0.07

+0.23

－

Net other operating income

2.7

1.4

(1.2)

(46.2%)

General andadministrative expenses

9.4

10.2

+0.7

+7.9%

Ordinary profit

2.2

2.9

+0.6

+27.4%Net income

1.2

1.6

+0.4

+34.3%Net operating profit

2.4

3.1

+0.7

+30.2%

Change from 11.3.31

Net interest income

2.9(Billions of yen)

(9M)

Ordinary revenues+27.4%

2.2

FY10.3Ｑ(Billions of yen)

10.12.31

11.3.31

11.12.31

Securities

952.3

940.1

878.3

(61.7)(6.6%)

Loans

681.0

722.4

805.9

+83.4

+11.6%

Deposits

1,609.9

1,649.1

1,688.3

+39.2

+2.4%

Customer assets

1,711.6

1,755.5

1,783.4

+27.8

+1.6%

Total net assets

58.9

59.9

59.3

(0.5)

(1.0%)Net unrealized gains (losses)
on other securities (net of taxes)
Total assets

0.7

0.4

(0.6)

(1.0)

－

1,736.3

1,761.8

1,818.7

+56.9

+3.2%

Line item amounts are truncated below ¥100 million (excluding net fees and commissions);
percentage change figures are rounded.

21

Highlights of Sony Bank’s operating performance (non-consolidated
basis) are shown here.
Sony Bank’s ordinary revenues decreased 0.9% year on year, to ¥22.1
billion, owing primarily to a decrease in gains on foreign exchangetransactions, whereas interest income on loans increased led by thegrowing balance of mortgage loans.
Gross operating profit increased 11.6% from a year earlier, to ¥13.6
billion, due mainly to an increase in net interest.
General and administrative expenses expanded 7.9% year on year, to¥10.2 billion, due to the personnel reinforcement associated with the fullscale entry into credit card business.
As a result, ordinary profit increased 27.4%, to ¥2.9 billion.
Net income amounted to ¥1.6 billion, up 34.3% from the same period of
the previous fiscal year, due to higher ordinary profit.

21

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)(Billions of yen)

10.12.31

11.3.31

11.12.31

1,711.6

1,755.5

1,783.4

+27.8

+1.6%

Deposits

1,609.9

1,649.1

1,688.3

+39.2

+2.4%

Yen

1,265.1

1,289.8

1,334.0

+44.1

+3.4%

344.8

359.2

354.3

(4.8)

(1.4%)

101.6

106.4

95.0

(11.3)(10.7%)

681.0

722.4

805.9

+83.4

+11.6%

Mortgage loans

621.4

656.0

722.7

+66.6

+10.2%

Others59.6

66.4

83.2*1+16.8+25.3%+25+2.9%

Customer assets

Foreign currency
Investment trusts
Loans outstanding

Change from 11.3.31*1

Number of accounts (thousands)

Capital adequacy ratio (*2)(domestic criteria)
Tier 1 ratio

840

859

884

11.25%

10.84%

11.86%+1.02pt

10.79％

10.41％

9.85%(0.56pt)*1 Loans in others include corporate loans of ¥75.8 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P26.

 Yen deposits increased due to an effectof special offer for winter 2011 bonus
season.

 Foreign currency deposit decreased as
the hike in the yen had the negative
impact on the foreign exchange
conversion (approx. ¥28 billion), though
the foreign-currency denominatedbalance increased.

 Investment trusts decreased reflecting adecline in reference price.

 Loan balance steadily increased due toincreases in mortgage loans andcorporate loans centering on syndicatedloans.
 In October 2011, SFH issued ¥10 billion
in bonds and transferred the funds raised.
through this issue
to Sony Bank as a loan
aimed at reinforcing that company’s
financial base.
The Tier 1 ratio was also kept at a highlevel.

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

22

Here is an overview of Sony Bank’s performance.

22

Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference><Reference> On Managerial Accounting Basis
FY09.3Q(9M)

FY10.3Q(9M)

FY11.3Q
(9M)

11.0

12.1

13.5

+1.4

+11.7%

10.0

11.0

13.0

+2.0

+18.2%Net fees andcommissions *2 ②

0.9

0.5

0.7

+0.2

+34.8%Net other operating
income *3

0.0

0.5

(0.2)

(0.7)

－

11.0

11.6

13.8

+2.2

+19.0%(Billions of yen)
Gross operating profit
Net interest income *1 ①

Gross operating profit(core profit) (A)= ①＋②
Operating expenses andother expenses ③
Net operating profit(core profit)= (A)－③

8.6
2.4

9.7
1.8

10.4
3.4

Gross Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Net Operating Profit (Core Profit)

Change

+0.6
+1.5

+6.9%
+81.6%●Managerial accounting basis
The following adjustments are made to the figures on a financial accounting basis toaccount for profits and losses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.

Gross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses

14(Billions of yen)

12

11.0

13.8
+19.0%

11.6
9.7

10

+6.9%

10.4

8.6
8
6

3.4

4

2.4
2

+81.6%

1.8

0●Core profit
FY09.3Q (9M)
FY10.3Q (9M)
FY11.3Q (9M)
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

23

We break down gross operating profit on a managerial accounting basis tofacilitate an understanding of operational sources of revenue and profits.
(Left-hand table)
Net interest income on a managerial accounting basis increased ¥2.0 billion
year on year, to ¥13.0 billion, due to a growing balance of assets, especiallymortgage loans, and a decrease in interest expenses.
Net fees and commissions amounted to ¥0.7 billion, ¥0.2 billion up year on year,
owing to an increase in commissions from credit card business despite adecrease in profits on customer dealings in foreign currency transactions
stemming from adverse foreign exchange market conditions.
Net other operating income decreased ¥0.7 billion reflecting lower gains onbond dealing transactions.
Consequently, gross operating profit on a core profit basis increased ¥2.2 billion
year on year, to ¥13.8 billion.
(Right-hand graph)
Net operating profit on a core profit basis increased ¥1.5 billion year on year, to¥3.4 billion.

23

Sony Bank Operating Performance (1)<Reference>＜参考＞ Interest Spread (Managerial Accounting Basis)
Interest spread

Yield on investment

Yield on financing

(%)
2.00

1.50

1.00

1.42

0.88

0.53
0.50

1.40

1.41

1.41

0.94

0.98

1.01

0.45

0.43

0.40

0.40

FY10.4Q

FY11.1Q

FY11.2Q

FY11.3Q

1.36(0.05pt)

0.96

0.00
FY10.3Q

Notes: Interest spread = Yield on investment – Yield on financing
Yield on investment includes primarily gains or losses from currency swap transactions in net other operating income.

24

This chart shows the interest spread on a managerial accounting basis.
The yield on investment for FY11. 3Q, was at 1.36%. The yield on
financing was kept at 0.40%.
Interest spread was 0.96%, almost at the same level as FY11.2Q.

24

Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
Yen deposits

Foreign currency deposits

Loans
Mortgage loans

Investment trusts(Billions of yen)

Others*Including corporate loans of ¥75.8billion.

(Billions of yen)

+83.4

805.9

800

1,711.6

1,755.5

722.4

1,783.4

83.2*

681.0

+27.8

95.0
600

354.3

722.7

400
Deposits
total:

1,334.0

1,688.3
200

010.12.31

11.3.31

11.12.31

Line item amounts are truncated below ¥100 million.

25(Left-hand graph)
As of December 31, 2011, customer assets (the sum of deposits and investment
trusts) were up ¥27.8 billion from March 31, 2011, to ¥1,783.4 billion.
As for the breakdown of customer assets as of December 31, 2011, deposits(the sum of Japanese yen and foreign currency deposits) amounted to ¥1,688.3
billion, up ¥39.2 billion from March 31, 2011.
Of which yen deposit increased ¥44.1 billion due to an effect of special offer for
winter 2011 bonus season.
On the other hand, foreign currency deposit decreased ¥4.8 billion as the hike inthe yen had the negative impact on the foreign exchange conversion (approx.
¥28 billion), though the foreign-currency denominated balance increased.
Investment trusts were ¥95.0 billion, down ¥11.3 billion from March 31, 2011,reflecting a decline in reference price.
(Right-hand graph)
Loans expanded to ¥805.9 billion, up ¥83.4 billion, from March 31, 2011, owing
to a growing balance of mortgage loans, as well as an increase in corporateloans centering on syndicated loans.

25Sony Bank Operating Performance (3)Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)

Balance of Securities by Credit Ratings
AAA
BBB

AA
BB

A
Other

Capital Adequacy Ratio

Tier I Ratio

11.25

10.84

+1.02pt

10.41（0.56pt）（％）(Billions of yen)

11.86
952.3

940.1

(61.7)

878.3

10.79

9.85

<Reference>
In October 2011
Sony Bank borrowed funds from SFH
as subordinated loan to reinforce its financial base.

* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Law of Japan, in accordance with Financial Services
Agency of Japan (“FSA”) public ministerial announcement No. 19 of 2006. The capital
adequacy ratio newly adopted the special exception of the standard mentioned above, in
accordance with the FSA public ministerial announcement No. 79 of 2008.

Amounts are truncated below ¥100 million.

26(Left-hand graph)
As of December 31, 2011, the balance of securities decreased ¥61.7
billion, to ¥878.3 billion from March 31, 2011 as a results of accumulating
loan balance to improve deposit-loan ratio and interest spread.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of December 31, 2011, Sony Bank’s non-consolidated capital
adequacy ratio (domestic criteria) was 11.86%, up 1.02 percentage pointfrom March 31, 2011, owing to the funds transferred in October 2011
from SFH to Sony bank as subordinated loan. This figure indicates thatSony Bank has reinforced the quality and quantity of its financial base.
The Tier 1 ratio was 9.85%, maintained at a high level.

26

Consolidated Financial Forecast
for the Year Ending March 31, 201227

27

Consolidated Financial Forecast
for the Year Ending March 31, 2012
Ordinary revenues and ordinary profit were revised upward, whereas net income remained unchanged.
FY10(Billions of yen)
Consolidated ordinary revenues

FY11
Revised Forecast

ActualFY11
Previous
Forecast

ChangeFY11 revised forecast vs.
FY11 previous forecast

1,002.2

1,047.0

1,022.0+25.0Life insurance business

900.3

935.0

909.3

Non-life insurance business

74.1

80.4

80.4

29.5

32.2

32.8

+25.7
－
(0.6)

76.8

67.0

59.0

+8.0

Life insurance business

72.1

61.0

53.0

+8.0

Non-life insurance business

2.1

2.6

2.6

－

Banking business

2.4

3.3

4.1

(0.8)

41.7

29.0

29.0

－

Banking business
Consolidated ordinary profit

Consolidated net income■Life insurance businessAt the end of the first half of this fiscal year, although the first-half operating results exceeded our previous forecast, the financial results forecast for this fiscal year remained unchanged
due mainly to the uncertainty about the financial market environment. However, we revise the full-year financial results forecast as income from insurance premiums and investment
income on general account assets during the nine months ended December 31, 2011, exceeded our previous forecast.
■Non-life insurance business
The financial results forecast for this fiscal year remains unchanged from the previous forecast. This is due to an anticipated steady increase in premium income and a reversal ofcatastrophe reserve, which is expected to offset the negative impact of a rising loss ratio.
■Banking Business
The financial results forecast for this fiscal year has been revised mainly because revenues from foreign-currency transactions during the nine months ended December 31, 2011, werelower than our previous forecast, affected by foreign exchange rate fluctuations.
1. Amounts are truncated below ¥100 million.
2. On Feb 2, 2012, SFH revised its consolidated financial forecast for this fiscal year. The previous forecast was announced on May 20, 2011.

28

Here is our consolidated financial forecast for the fiscal year ending
March 31, 2012.
At the end of the first half of this fiscal year, although the first-halfconsolidated results exceeded our previous forecast, the financial results
forecast for this fiscal year remained unchanged due mainly to theuncertainty about the financial market environment. However, we revised
upward the full-year financial results forecast of ordinary revenues andordinary profit as income from insurance premiums and investment
income on general account assets during the nine months ended
December 31, 2011, exceeded our previous forecast mainly in the life
insurance business.
Our financial forecast of consolidated net income remained unchanged.
This is because a rise in profit is expected to be offset by the negative
impact of a reversal of deferred tax assets owing to the newly
promulgated laws associated with the reduction in the corporate tax rate.

28

Appendix

29

Appendix29

Recent Topics 1
AEGON Sony Life Insurance Sales Update
Launch of sales：December 1, 2009
Common stock：¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products: Individual Variable Annuities (3 types, 4 products)
Sales Channels: Lifeplanner sales employees and partner banks (7*) As of February 14, 2012
Financial Highlights for FY11.3Q (9M):
Number of new policies: 1,467, New policy amount: ¥10.6 billion
Number of policies in force: 2,659 policies, Policy amount in force: ¥23.2 billion

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 25% of the balance ofmortgage loans as of December 31, 2011
Sony Life accounts for 28% of the amount of
new mortgage loans for FY11.3Q (9M)*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY11.3Q (9M)
* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

30

30

Recent Topics 2<Highlights from the FY11.3Q onward>
2011-10-03

AEGON Sony Life Insurance began offering "W Account II," a new individual variable annuity product (GMAB Type 2011),
through Kansai Urban Banking

2011-10-25

Sony Financial Holdings issued No. 1 unsecured corporate bonds

2011-11-02

Sony Life began offering new product: Cancer Drug Therapy Rider

2011-11-28

Sony Bank added four funds including Chinese RMB fund to investment trust lineups

3131Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
zFair value information on securities with market value (except trading-purpose securities)(Billions of yen)zValuation gains (losses) on trading-purpose securities(Billions of yen)

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.”

32(Sony Life: Fair Value Information on Securities)

32

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Real Net Assets and Solvency Margin(Billions of yen)
①Net Assets(B/S)

11.3.31

11.12.31②Real
Net Assets

11.3.31

11.12.31③Solvency
Margin11.3.31

11.12.31

209.8

222.9

209.8

222.9

200.7

Net unrealized gains on other securities, net of taxes

7.0

27.4

7.0

27.4

－

－

Net unrealized gains (losses) on available-for-sale securities

－

－

－

－

20.8

46.4

Land revaluation, net of taxes

(1.4)

(1.3)

(1.4)

(1.3)

－

－

Reserve for price fluctuations

－

－

16.7

22.8

16.7

22.8

Contingency reserve

－

－

51.5

54.2

51.5

54.2

General reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate

－

－

1.9

1.9

1.0

1.0

Total shareholders’ equity

222.9

Excess amount of policy reserves based on Zillmer method

－

－

334.2

346.1

334.2

346.1

Unallotted portion of reserve for policyholders' dividends

－

－

1.1

0.8

1.1

0.8

Future profits

－

－

－

－

0.6

0.6

Deferred tax assets

－

－

－

－

63.3

59.5

Unrealized gains (losses) on held-to-maturity bonds－－(22.1)

152.4

－

－

Deferred tax liabilities for available-for-sale securities

－

－

8.0

15.6

－

－

215.3

249.0

606.9

843.3

690.3

754.7

Total

Note: Real net assets excluding net unrealized gains (losses) on held-to-maturity securities and on policy reserve matching bonds, are¥629.1 billion as of March 31, 2011, and ¥690.8 billion as of December 31, 2011.

Notes③After estimated distributed
income deducted③Before tax x 90%②Before tax（After revaluation）③Before tax(Before revaluation) X85%

②Before tax

Amounts are truncated below ¥100 million.

33(Sony Life’s Breakdown of Net Assets)33

Sony Life’s Solvency Margin Ratio(Billions of yen)

Note: Cabinet Office Ordinance No. 23 of 2010 and FSA public ministerial announcement No. 48 of 2010 prescribe a revision in the methods of calculating
total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive).
These changes are to be applied from the end of FY11. The above-stated figures are calculated on the assumption that these changes are applied as of December 31, 2011.
Amounts are truncated below ¥100 million.

34(Sony Life’s Solvency Margin Ratio)

34

Status of Exposure in the five European countries

9SFH Group’s Exposure in the five European countries(Greece, Ireland, Italy, Portugal, and Spain)

Sovereign bond

OthersSony Life

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Sony
Assurance――

Sony Bank―¥1.6 Billion(Corporate bonds of Spanish company)(Note) As of December 31, 2011. Exposure of Sony Life is for general account assets.

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

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