Consolidated Financial Summary (Japanese GAAP)
for the Six Months Ended September 30, 2011

November 14, 2011

Company name:Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/index_en.html)
Stock exchange listings: Tokyo Stock Exchange (code number: 8729)
Representative:
Katsumi Ihara, President and Representative Director
Inquiries:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.

(Fractional amounts of less than ¥1 million are discarded.)1.

Consolidated financial results for the six months ended September 30, 2011
(1) Operating results
Ordinary Revenues
Ordinary Profit
For the six months ended
September 30, 2011
For the six months ended
September 30, 2010

Note: Comprehensive Income:Millions of yen% change509,9192.8

496,209

3.1

Millions of yen

Net Income% change

Millions of yen% change

30,854（40.2）

16,364（44.4）

51,55430.7

29,42025.8

For the six months ended September 30, 2011: ¥35,102 million; （4.9）％－ ％For the six months ended September 30, 2010: ¥36,911 million;

Net Income per ShareNet Income per Share(Fully Diluted)

Yen

Yen

For the six months ended
September 30, 2011
For the six months ended
September 30, 2010

37.62

—

67.63

—

Note: Although a stock split was conducted during the six months ended September 30, 2011, net income per share for the six months ended
September 30, 2010, was calculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of September 30, 2011

6,816,885

322,527

4.7

As of March 31, 2011

6,597,140

294,877

4.5

Notes: 1. Shareholders’ equity:

As of September 30, 2011: ¥321,241 million
As of March 31, 2011: ¥294,877 million
2. The net asset ratio is computed by dividing the amount of total net assets by total assets at the end of the fiscal period.

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2011
For the year ending
March 31, 2012
For the year ending
March 31, 2012
(forecast)

1st quarterYen

2nd quarterYen

3rd quarter
Yen

Year-end
Yen

Annual Total
Yen

—

—

—

20.00

20.00

—

—

20.00

20.00

—

Note: Although a stock split was conducted during the six months ended September 30, 2011, the dividend per share for the year ended March
31, 2011, was calculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

3. Forecast of consolidated financial results for the year ending March 31, 2012

(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

For the year ending
March 31, 2012

Ordinary Profit

Millions of yen % change Millions of yen

1,022,000

2.0

59,000% change(23.2)Net Income per
Share

Net Income
Millions of yen

29,000% change(30.5)

Yen

66.67

4. Other Information(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying
changes in scope of consolidation): None
(2) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: Yes(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of September 30, 2011:
435,000,000 shares
As of March 31, 2011:
435,000,000 shares(b) Number of treasury shares
As of September 30, 2011:— shares
As of March 31, 2011:— shares(c) Weighted-average number of shares
For the six months ended September 30, 2011:
435,000,000 shares
For the six months ended September 30, 2010:
435,000,000 shares
Although a stock split was conducted during the six months ended September 30, 2011, the total number of shares
outstanding as of March 31, 2011, the number of shares of treasury stock as of March 31, 2011, and the average numberof shares during the six months ended September 30, 2010 were calculated assuming that the stock split was conducted at
the beginning of the previous fiscal year.

Status of quarterly review procedures・Interim financial statements in this document are exempt from audit procedure based upon the Financial Instruments andExchange Act. Audit procedures are underway as of the date of this report.
Explanation for Appropriate Use of Forecasts and Other Notes
・Sony Financial Holdings conducted a 200-for-1 stock split on April 1, 2011.

Content of Supplemental Materials
I.

Qualitative Information and Financial Statements

II.

1.

Qualitative Information on Consolidated Operating Performance・・・・・・・・・・・・・・ 2

2.

Qualitative Information on Consolidated Financial Position・・・・・・・・・・・・・・・・ 3

3.

Consolidated Financial Forecast for the Year Ending March 31, 2012・・・・・・・・・・・・・・ 3

Notes Regarding Summary Information (Others)
1.

Changes in scope of consolidation during the period・・・・・・・・・・・・・・・・・ 4

2.

Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4

III.

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・ 52.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・7(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・ 10

IV.

3.

Consolidated Statements of Changes in Net Assets・・・・・・・・・・・・・・・・・・・・・・11

4.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・13

5.

Significant Subsequent Event・・・・・・・・・・・・・・・・・・・・・・・・・・ 17

6.

Per Share Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17

Attachment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・19(Attachment)
Consolidated Financial Results for the Six Months Ended September 30, 2011

* We will upload Guidance on the Value of Existing Business, a Component of Sony Life’s Market Consistent
Embedded Value (EV), as of September 30, 2011, on November 14, 2011 at 13:30 (Tokyo).
Please see futher details at our website: http://www.sonyfh.co.jp/index_en.html* The Conference Call for explaining the SFH Group financial results will be held at 17:30, Novembr 14, 2011.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on Novembr 14, 2011, and its Q&A summary
later on Presentation Materials page on our website.
* On Novembr 14, 2011, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce its financial results for thesix months ended September 30, 2011. SFH prepared an English-language summary of those Japanese
announcements made by above subsidiaries, solely for convenience of non-Japanese readers.
Please see futher details at our website: http://www.sonyfh.co.jp/en/financial_info_e/results.html

1

I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
During the six months ended September 30, 2011 (April 1, 2011 through September 30, 2011), consolidated ordinary
revenues grew 2.8% compared with the same period of the previous fiscal year, to ¥509.9 billion, owing to increases inordinary revenues from the all businesses: life insurance, non-life insurance and banking.
Consolidated ordinary profit decreased 40.2% year on year, to ¥30.8 billion. By business segment, ordinary profit from thelife insurance business decreased, whereas ordinary profit from the non-life insurance and the banking businesses increased
year on year.
After accounting for extraordinary gains and losses, reversal of reserve for policyholders’ dividends and income taxes, net
income for the six months ended September 30, 2011, was down 44.4% year on year, to ¥16.3 billion.
Segment Information by Business< Life insurance business >In the life insurance business, ordinary revenues increased 2.4% year on year, to ¥454.9 billion, due to higher income frominsurance premiums associated with steady growth in the policy amount in force. Ordinary profit decreased 43.3% year on
year, to ¥28.1 billion 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 business >In the non-life insurance business, ordinary revenues increased 7.6% compared with the same period of the previous fiscal
year, to ¥39.9 billion, due to higher net premiums written, as the number of insurance policies in force grew, primarily for
automobile insurance. Ordinary profit expanded 9.3% year on year, to ¥0.7 billion, due mainly to a rise in ordinary revenues
and a reversal of catastrophe reserve, which offset the negative impact of a rise in the loss ratio, driven by higher insurance
claim payments for automobile insurance.

< Banking business >In the banking business, ordinary revenues increased 3.3% compared with the same period of the previous fiscal year, to¥15.9 billion, owing to the acquisition of a 57% equity interest in SmartLink Network, Inc. by Sony Bank; ordinary revenuesof the newly acquired company are included in the scope of consolidation. Ordinary profit rose 56.7% year on year, to ¥1.9
billion due to a rise in gross operating profit, reflecting a decrease in interest expenses on yen deposits and higher interest
income on loans, led by the growing balance of mortgage loans.
Ordinary Revenues
For the six months ended
September 30, 2010
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the six months ended
September 30, 2011

(Millions of yen)
Change (%)

444,530
37,107
15,478454,987
39,93015,994

2.4
7.6
3.3

497,116

510,912

2.8

(907)

(992)

-

496,209509,9192.8

2Ordinary Profit
For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

Life insurance business
49,59428,141
Non-life insurance business
675
739
Banking business
1,215
1,904
Subtotal
51,48530,785Intersegment adjustments*
69
68
Consolidated
51,55430,854*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

(Millions of yen)
Change (%)(43.3)
9.3
56.7(40.2)(0.7)(40.2)

2. Qualitative Information on Consolidated Financial Position
As of September 30, 2011, total assets amounted to ¥6,816.8 billion, up 3.3% from March 31, 2011. Among major
components of assets, securities, mostly Japanese government bonds, amounted to ¥5,207.6 billion, up 3.5% from March 31,
2011. Loans came to ¥913.7 billion, up 6.6%, and monetary trusts amounted to ¥300.9 billion, up 3.5%.
Total liabilities were ¥6,494.3 billion, up 3.0% from March 31, 2011. Major components of liabilities included policy
reserves and others of ¥4,690.8 billion, up 4.5%, and deposits totaled ¥1,644.1 billion, down 0.2%.
Total net assets were ¥322.5 billion, up 9.4% from March 31, 2011. This included net unrealized gains on other securities,
net of taxes, which increased ¥19.5 billion, to ¥28.1 billion.

3. Consolidated Financial Forecast for the Year Ending March 31, 2012
SFH’s forecast of consolidated financial results for the fiscal year ending March 31, 2012, is unchanged from the forecast
announced on May 20, 2011.

3

Ⅱ. Notes Regarding Summary Information (Others)
1. Changes in scope of consolidation during the period
Owing to the acquisition of shares in SmartLink Network, Inc., by our banking subsidiary (Sony Bank Inc.), the newly
acquired company is included in the scope of consolidation for the six months under review.
2. Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(Change in accounting policies resulting from the Revision of the Accounting Standards and Other Regulations)
From the six months of the year ending March 31, 2012, we have applied the “Accounting Standard for Earning Per
Share”(Accounting Standards Board of Japan [ASBJ] Statement No.2 of June 30, 2010), the “Guidance on AccountingStandard for Earnings Per Share”(ASBJ Guidance No.4 of June 30, 2010), and the “Practical Solution on Accounting for
Earnings Per Share”(ASBJ PITF No.9 of June 30, 2010).

4

Ⅲ. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2011

As of September 30, 2011

AssetsCash and due from banks
Call loans and bills bought
Monetary trusts
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersDue from reinsurers
Foreign exchanges
Other assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses¥ 90,455
78,500290,736
5,031,024
857,436
77,171
26,246
1,002
25,243
108
8,432
88,32049,0571,000(1,349)¥ 86,232
65,600300,964
5,207,687
913,72276,75030,6601,129
29,530263
7,109
89,43839,3541,000(1,899)Total Assets¥6,597,140¥6,816,885

5

(Millions of yen)
As of March 31, 2011
Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends
Due to agencies
Due to reinsurers
Deposits
Call money and bills soldBorrowed money
Foreign exchanges
Other liabilities
Reserve for employees’ bonuses
Reserve for employees’ retirement benefits
Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Reserve for financial products transaction liabilities
Deferred tax liabilities on land revaluation
Acceptances and guarantees

As of September 30, 2011

¥ 4,489,809
49,1644,435,804
4,839
1,502
799
1,647,657
10,0002,000
17110,119
2,707
18,698441
16,817
16,8124693
1,000¥ 4,690,804
45,8424,640,290
4,670
1,415
595
1,644,149
10,0002,000
1099,9952, 53920,132318
20,701
20,6965693
1,000

6,302,263

6,494,357

19,900195,277
74,565
289,742
8,525(1,558)(1,499)
(331)
5,135

19,900195,277
82,229297,406
28,111(2,431)(1,499)(345)
23,834

Minority interests

－

1,285

Total Net Assets

294,877

322,527¥6,597,140¥6,816,885

Total Liabilities
Net Assets
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes
Land revaluation, net of taxes
Foreign currency translation adjustments
Total accumulated other comprehensive income

Total Liabilities and Net Assets

62. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

Ordinary Revenues¥496,209¥509,919

Ordinary Revenues from the Life Insurance Business

443,638

454,021

370,748395,399369,726

395,138

1,021

261

71,056

51,911

42,21547,322

Income from monetary trusts, net

4,346

2,646

Gains on sale of securities

24,492

1,930

Other investment income

1

11

1,834

6,711

37,10639,92936,72239,45936,70739,443

14

15

371

430

Interest income and dividends

383

423

Gains on sale of securities—

20

Gains on redemption of securities

2

2

Transfer to interest and dividends on deposits of premiums

(14)

(15)

Other ordinary income

1239

15,464

15,968

Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income
Interest income and dividends

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income

Ordinary Revenues from the Banking Business
Interest income

11,785

12,257

Interest income on loans

6,090

6,537

Interest income and dividends on securities

5,615

5,696

Interest income on call loans and bills bought

18

6Interest income on deposits with banks

30

16

Other interest income

31

0Fees and commissions

963

1,947

Other operating income

2,694

1,725

1,790

908

904

816

20

37

Gains on foreign exchange transactions, net
OthersOther ordinary income(Continued)

7

(Millions of yen)
For the six months ended
September 30, 2010
Ordinary Expenses¥444,654

Ordinary Expenses from the Life Insurance BusinessInsurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other payments
Reinsurance premiums
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses
Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business
Underwriting expenses
Net losses paid
Loss adjustment expenses
Net commission and brokerage fees
Provision for reserve for outstanding losses
Provision for underwriting reserves
Other underwriting expenses
Investment expenses
Losses on redemption of securities
Operating, general and administrative expenses
Other ordinary expenses

For the six months ended
September 30, 2011
¥479,065

394,719426,613132,056
35,577
3,602
15,95375,041
824

137,299
36,365
3,913
16,26478,644
1,106

1,056

1,004

179,383
1,406
177,9698
27,057
27
703
348
23
163
17
1,236
3,117
21,42049,011200,882－
200,874729,301
30
1,528
866
－
706
6
1,125
3,198
21,83851,472

7,210
36,217

7,656
38,952

27,76429,56519,031
2,343
485
1,666
4,236
0

21,196
2,511
529
1,715
3,611
0

—

1

—

1

8,422

9,363

29

22
(Continued)

8

(Millions of yen)
For the six months ended
September 30, 2010
Ordinary Expenses from the Banking Business

For the six months ended
September 30, 2011

13,717

13,499

5,475
4,427
5

4,424
3,463
5

25

39

1,016

914

0

1

Fees and commissions

614

685

Other operating expenses

639

302

6,662

7,705

324

381

51,55430,854

0
0

0
0

3,780
50

4,150
17

0

248

290

－

3,438

3,884

Provision for reserve for price fluctuations

3,438

3,884

Provision(Reversal) for Reserve for Policyholders’ dividends

345

(37)

Income Before Income Taxes

47,42826,741

Income Taxes

18,007

10,338- Current

20,870

11,156- Deferred(2,862)(818)

29,42016,403－38

29,42016,364

Interest expenses
Interest expenses on deposits
Interest expenses on call money and bills soldInterest on borrowed money
Interest expenses on interest rate swaps
Other interest expenses

General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on disposal of fixed assets
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Cumulative effect on application of accounting standard for
asset retirement obligations
Provision for special reserves

Income Before Minority Interests
Minority interests in income
Net Income

92. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the six months ended
September 30, 2010
Income Before Minority Interests

For the six months ended
September 30, 2011

¥29,420¥16,403

9,460

19,588(1,856)

(872)

(110)

(13)

(2)

(2)

7,491

18,699Comprehensive income

36,911

35,102(Details)
Comprehensive income attributable to parent company

36,91135,064Comprehensive income attributable to minority interests—

38

Other comprehensive income
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes
Foreign currency translation adjustments
Share of other comprehensive income of affiliates accounted
for using equity method
Total other comprehensive income

103. Consolidated Statements of Changes in Net Assets(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

Shareholders’ Equity
Common stock
Balance at the beginning of the fiscal year

19,90019,900——19,90019,900195,277

195,277——

195,277

195,277

39,35074,565

Dividends from surplus(6,525)(8,700)Net income

29,42016,364

Total changes during the period

22,895

7,664

Balance at the end of the current period

62,24582,229254,527

289,742Dividends from surplus(6,525)(8,700)Net income

29,42016,364

Total changes during the period

22,895

7,664

Balance at the end of the current period

277,422

297,406

17,511

8,525

Net changes of items other than shareholders’ equity

9,457

19,585

Total changes during the period

9,457

19,585

Balance at the end of the current period

26,96928,111

Changes during the period
Total changes during the period
Balance at the end of the current period
Capital surplus
Balance at the beginning of the fiscal year
Changes during the period
Total changes during the period
Balance at the end of the current period
Retained earnings
Balance at the beginning of the fiscal year
Changes during the period

Total shareholders’ equity
Balance at the beginning of the fiscal year
Changes during the period

Accumulated Other Comprehensive Income
Net unrealized gains on other securities, net of taxes
Balance at the beginning of the fiscal year
Changes during the period(Continued)

11

(Millions of yen)
For the six months ended
September 30, 2010

For the six months ended
September 30, 2011

(960)

(1,558)Net changes of items other than shareholders’ equity(1,856)(872)

Total changes during the period(1,856)(872)

Balance at the end of the current period(2,816)(2,431)(1,475)(1,499)Total changes during the period——

Balance at the end of the current period
Foreign currency transaction adjustments(1,475)(1,499)

(163)

(331)

Net changes of items other than shareholders’ equity

(110)

(13)

Total changes during the period

(110)

(13)

Balance at the end of the current period

(273)

(345)

14,9125,135

Net changes of items other than shareholders’ equity

7,491

18,699Total changes during the period

7,491

18,699Balance at the end of the current period

22,403

23,834－－

Net changes of items other than shareholders’ equity

－

1,285

Total changes during the period

－

1,285

Balance at the end of the current period

－

1,285

269,439

294,877

Dividends from surplus(6,525)(8,700)Net income
Net changes of items other than shareholders’ equity

29,4207,491

16,364
19,985

Total changes during the period

30,386

27,649Balance at the end of the current period

299,825

322,527

Net deferred losses on hedging instruments, net of taxes
Balance at the beginning of the fiscal year
Changes during the period

Land revaluation, net of taxes
Balance at the beginning of the fiscal year
Changes during the period

Balance at the beginning of the fiscal year
Changes during the period

Total accumulated other comprehensive income
Balance at the beginning of the fiscal year
Changes during the period

Minority interests
Balance at the beginning of the fiscal year
Changes during the period

Total Net Assets
Balance at the beginning of the fiscal year
Changes during the period124. Segment Information
For the six months ended September 30, 2010
(1) Outline of reportable segments
The SFH Group consists of three reportable segments, the life insurance business, the non-life insurance business, andthe banking business.
The life insurance business consists of Sony Life Insurance Co., Ltd., Sony Life Insurance (Philippines)
Corporation, AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd.
The non-life insurance business consists of Sony Assurance Inc.

The banking business consists of Sony Bank Inc. and Sony Bank Securities Inc.
(2) Segment Information by reportable segment

Ordinary Revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings ofaffiliates (losses)
Investments in affiliates
Increase in Tangible
fixed assets andIntangible fixed assets

Life
insurancebusiness

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥443,638
891
444,530
49,594
4,486,836¥37,106
1
37,107675
103,967¥15,464
14
15,4781,215
1,700,705¥496,209
907
497,116
51,485
6,291,510

2,602

283

717

3,602

42,42727

383-

11,785
5,475

54,596
5,502(469)
11,464--(469)
11,464¥ 2,011¥ 1,070¥ 569¥ 3,65113

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Totals of each reportable segment
Adjustments of intersegment transaction
Ordinary revenues in income statement

Millions of yen¥497,116(907)¥496,209

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Ordinary profit in income statement

Millions of yen¥51,4856
62¥51,554

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Assets in balance sheets

Millions of yen¥6,291,510(1,158)5,130¥6,295,482

Depreciation
Interest income and dividends
Interest expenses
Equity in earnings of affiliates(losses)
Investments in affiliates
Increase in Tangible fixed assets
and Intangible fixed assets

Millions of yen
Consolidated
Total
Adjustments
Financial
Statements¥ 3,602¥ (0)¥ 3,60254,596(211)
54,384
5,502
(0)
5,502
(469)
11,464
¥

3,651

¥

14

-

(469)
11,464 30¥ 3,652

For the six months ended September 30, 2011
(1) Outline of reportable segments
The SFH Group consists of three reportable segments, the life insurance business, the non-life insurance business, andthe banking business.
The life insurance business consists of Sony Life Insurance Co., Ltd., Sony Life Insurance (Philippines)
Corporation, AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd.
The non-life insurance business consists of Sony Assurance Inc.

The banking business consists of Sony Bank Inc., Sony Bank Securities Inc. and SmartLink Network, Inc.
(2) Segment Information by reportable segment

Ordinary Revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings ofaffiliates (losses)
Investments in affiliates
Increase in Tangible
fixed assets andIntangible fixed assets

Life
insurancebusiness

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥454,021
965
454,987
28,1414,920,360¥39,9290
39,930739
114,684¥15,96826
15,994
1,904
1,776,657¥509,919
992
510,91230,785
6,811,701

2,692

493

824

4,010

47,53530

423-

12,257
4,424

60,216
4,455(431)
10,523--(431)
10,523¥ 3,336¥ 1,578¥ 1,401¥ 6,31515

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts
Totals of each reportable segment
Adjustments of intersegment transaction
Ordinary revenues in income statement

Millions of yen¥510,912(992)¥509,919

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Ordinary profit in income statement

Millions of yen¥30,7855
63¥30,854

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Assets in balance sheets

Millions of yen¥6,811,701
(999)
6,182
¥6,816,885

Total
Depreciation
Interest income and dividends
Interest expenses
Equity in earnings of affiliates(losses)
Investments in affiliates
Increase in Tangible fixed assets
and Intangible fixed assets

¥

4,010
60,216
4,455

Millions of yen
Consolidated
Adjustments
Financial
Statements¥ 3¥ 4,013(212)
60,004
(0)
4,455

(431)
10,523
¥

6,315

¥

16

-

(431)
10,523 3

21¥ 6,337

5. Significant Subsequent Event
Issuance of Straight Bonds
September 22, 2011-At a Board of Directors’ Meeting resolved to issue straight bonds.
Name
Total amount
Subscription date
Subscription amountInterest rate
Redemption date andmethodUse of funds

Sony Financial Holdings Inc. No. 1 Unsecured Corporate Bonds¥10 billion
October 25, 2011¥100 per each ¥100 of face value
0.545% per annum
October 28, 2016, lump-sum payment at maturity
Sony Financial Holdings used the funds raised through this issue as investment funds loaned to its
wholly owned subsidiary, Sony Bank Inc.

6. Per Share Information
Net income per share is based on the weighted-average number of shares of common stock outstanding during the period.
For the six months ended September 30, 2010 and 2011, net income per share was ¥67.63 and ¥37.62. There were no
potentially dilutive securities.
The basis for this calculation for the six months ended September 30, 2010 and 2011 is net income of ¥29,420 millionand ¥16,364 million, the entire amounts of which are applicable to common stock. The weighted-average number of shares
outstanding for the six months ended September 30, 2010 and 2011, was 435 million.
Note: Although a stock split was conducted during the six months ended September 30, 2011, net income per share for the six months
ended September 30, 2010, was calculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

17

SFH’s consolidated results* are prepared in accordance with accounting principles and practices
generally accepted in Japan. As such, these figures differ in significant respects from financial
information reported by SFH’s parent company, Sony Corporation, which prepares its financial
statements in accordance with accounting principles and practices generally accepted in the
United States.
*SFH’s scope of consolidation for the six months ended September 30, 2011 and the year endeding March 31, 2012, includes
Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony Assurance Inc., Sony Bank Inc., Sony Life Insurance(Philippines) Corporation, Sony Bank Securities Inc., and SmartLink Network, Inc. It also includes AEGON Sony Life
Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies accounted for under the equity method. SmartLink
Network, Inc. was not included in the scope of consolidation for the six months ended September 30, 2010 and for the year
ended March 31, 2011.

On November 2, 2011, Sony Corporation announced its consolidated financial results for thesecond quarter ended September 30, 2011(July 1, 2011, to September 30, 2011). SFH Group
companies constitute the majority of Sony Group’s Financial Services segment. However, thescope of Sony Group’s Financial Services segment differs from the scope of SFH’s consolidated
results. For the scope of Sony Group’s Financial Services segment, please refer to the November
2, 2011, news release by Sony Corporation.

This Consolidated Financial Summary contains statements concerning the current plans,
expectations, strategies and beliefs of the Sony Financial Holdings Group (“SFH Group”). Anystatements contained herein that pertain to future operating performance and that are not historicfacts are forward-looking statements. Forward-looking statements may include—but are not limited
to—statements using words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,”“predict,” and “possibility” that describe future operating activities, financial performance, events orconditions. Forward-looking statements, whether spoken or written, are based on judgments made by
the management of SFH Group based on information that is currently available to it. As such,forward-looking statements are subject to various risks and uncertainties, and actual results may vary
substantially from those expressed or implied in forward-looking statements. Consequently,
investors are cautioned not to place undue reliance on forward-looking statements. SFH Group
disclaims any obligation to revise forward-looking statements in light of new information, future
events or other findings.

For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp

Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

18

(Attachment)
Presentation Material Content
1.
2.
3.

Consolidated Operating Results for the Six Months Ended September 30, 2011・・・・・・・・ P.3
Consolidated Financial Forecast for the Year Ending March 31, 2012・・・・・・・・・・・・・ P.28
Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.29

19

Presentation Material

Consolidated Financial Results
for the Six Months Ended September 30, 2011

Sony Financial Holdings Inc.
November 14, 2011

Content■Consolidated Operating Results for the Six Months Ended September 30, 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Consolidated Operating Results for
the Six Months Ended September 30, 20113

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2011 (1)(Billions of yen)

Ordinary revenues

496.2

Ordinary profit

509.9

+2.8%

+10.4

+2.4%

49.5

28.1

(21.4)(43.3%)

Non-life
insurancebusiness

Ordinary revenues

37.1

39.9

+2.8

+7.6%

0.6

0.7

+0.0

+9.3%

15.4

15.9

+0.5

+3.3%

1.2

1.9

+0.6

+56.7%

(0.9)

(0.9)

(0.0)

-

0.0

0.0

(0.0)

(0.7%)

496.2

509.9

+13.7

+2.8%

Ordinary profit

51.5

30.8

(20.7)(40.2%)Net income

29.4

16.3

(13.0)(44.4%)

Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues

Consolidated

FY11.1H(Billions of yen)

454.9

Ordinary profit(40.2%)

FY10.1H

444.5

ChangeOrdinary revenues

Intersegment
adjustments*

30.8

FY11.1HLife
insurancebusiness

Bankingbusiness

51.5

FY10.1H

Consolidated(Billions of yen)

10.9.30

11.3.3111.9.30

Change from 11.3.31

Total
assets6,295.4

6,597.1

6,816.8+219.7

+3.3%

299.8

294.8

322.5

+27.6

+9.4%

Net assets*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY10.1H: ¥36.9 billion, FY11.1H: ¥35.1 billion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 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, due to higher net premiums written, as

the number of insurance policies in force grew, primarily for automobile insurance. Ordinary profit
expanded, due mainly to a rise in ordinary revenues and a reversal of catastrophe reserve, which
offset the negative impact of a rise in the loss ratio, driven by higher insurance claim payments forautomobile insurance.

 Banking: Ordinary revenues increased year on year, owing to the acquisition of shares in SmartLink

Network, Inc. by Sony Bank; ordinary revenues of the newly acquired company are included in thescope of consolidation. Ordinary profit rose, due to a rise in gross operating profit, reflecting adecrease in interest expenses on yen deposits and higher interest income on loans, led by the growing
balance of mortgage loans.

 Consolidated ordinary revenues increased 2.8% year on year, to ¥509.9 billion, however, consolidated

ordinary profit decreased 40.2%, to ¥30.8 billion. Net income decreased 44.4%, to ¥16.3 billion.

 SFH Group has no GIIPS* sovereign bonds.
*As of September 30, 2011
*GIIPS stands for Greece, Ireland, Italy, Portugal and Spain.
*Exposure of Sony Life is for general account assets.

5

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

444.3

FY10.1H

FY11.1H

444.3

454.8

+10.4

Income from insurance premiums

371.0

395.7

+24.6

+6.7%

Investment income(19.1)(26.9%)

Ordinary profit+2.4%(Billions of yen)
Ordinary revenues

454.8(42.9%)

28.5

71.1

52.0

42.3

47.4

+5.1

+12.1%

Income from monetary trusts, net

4.3

2.6

(1.7)

(39.1%)

Gains on sale of securities

24.4

1.9

(22.5)(92.2%)

394.3

426.2

+31.9

+8.1%

Insurance claims and other payments

132.0

137.2

+5.2

+4.0%

Provision for policy reserves and others

179.3

200.8

+21.5

+12.0%

Investment expenses

27.1

29.3

+2.2

+8.2%

0.7

1.5

+0.8

+117.2%Losses on sale of securities

FY10.1H

FY11.1H

Losses on separate accounts, net

21.4

21.8

+0.4

+2.0%

49.0

51.5

+2.5

+5.1%

Ordinary profit

50.0

28.5

(21.4)(42.9%)Net income

28.9

15.6

(13.3)(46.0%)

Operating expenses(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, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, although interest
income and dividends increased in the general account assets.
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.

+2.4%

Interest income and dividends

Ordinary expenses

50.0

Change10.9.30

11.3.3111.9.30

Change from 11.3.31

Securities

3,824.7

4,017.5

4,237.7+220.1

Policy reserves

4,163.5

4,371.4

4,572.3+200.8+4.6%

Total net assets

222.4

215.3

242.4

+27.0

+12.5%+291.8%(Billions of yen)

Net unrealized gains on other securities
Total assets
Separate account assets

+5.5%

24.6

7.0

27.4

+20.4

4,487.8

4,723.3

4,922.5+199.2

+4.2%

367.2

398.1

392.6

(5.5)

(1.4%)

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

6

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

FY10.1H

FY11.1H(Reasons for changes)

ChangeNew policy amount2,068.4

2,051.7(0.8%)

Lapse and surrender amount

1,039.2

1,022.4(1.6%)

Lapse and surrender rate

3.11%

2.95%

(0.16pt)

Policy amount in force

34,118.5

35,371.1

+3.7%

34.9

33.2

(4.8%)

Annualized premiums from new policies
Of which, third-sector products
Annualized premiums from insurance in force
Of which, third-sector products(Billions of yen)

7.9

8.1

+2.0%

589.6

618.0

+4.8%

136.6

144.7

+5.9%

FY10.1H

FY11.1H

 Decreased due to the lowering lapse andsurrender rates mainly in family income insurance,
which is life insurance with disability benefit,
though those in term life insurance increased.
 Decreased, due mainly to lower sales of cancer
hospitalization insurance and educational
endowment insurance.

ChangeGains from investment, net (General account)

65.4

44.5

(32.0%)

Core profit

26.8

31.6

+18.0%

Negative spread

4.1

1.9

(53.7%)

10.9.30

11.3.3111.9.30

Changefrom
11.3.312,992.8%

2,900.1%

3,148.0%+247.9pt

Solvency Margin Ratio Decreased slightly, due mainly to lower sales offamily income insurance, which is life insurancewith disability benefit, despite favorable sales ofterm-life insurance, living benefit insurance andnursing-care insurance.

 Decreased due to lower gains on sale of securities
despite an increase in interest income anddividends.
 Increased reflecting lower insurance payments for
the Great East Japan Earthquake of March 2011
than formerly expected, and a decline in negative
spread.

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.

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

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(Trillions of yen)276

Number of new policies(Thousands of policies)

295(4.0%)

283

300

Annualized premiums from new policies(Billions of yen)40

15,000
3.0

35

2.05

2.06
10,000
1.0

1.81

200

Of which, third-sector

34.9(4.8%)

33.2

32.0

30
25

(0.8%)

20

100

5,000
0.5

15
+2.0%

10
5

0

0
FY09.1H

FY10.1H

FY11.1Q

Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

7.7

7.9

8.1

FY09.1H

FY10.1H

FY11.1H

0Line item amounts are truncated below ¥100 million; percentage figures are rounded.

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

Annualized premiums from insurance in force

Of which, third-sector(Millions of policies)(Trillions of yen)
50

Number of policies in force

+6.3%

5.17

5.49

5.34

(Billions of yen)
700

+2.9%

+4.8%

5

589.6

600

40

34.1

+3.7%

35.3

34.7

4

604.7

618.0
+2.2%

500

+1.8%
30
3

400

300

20

2
200

10

1

0

0

10.9.30

11.3.31

+5.9%

100

136.6

140.7

10.9.30

11.3.31

144.7

+2.9%

0

11.9.30

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

11.9.30

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

9Sony Life Operating Performance (3)Lapse and Surrender Rate*

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

Lapse and surrender rate
（1H）

Lapse and surrender rate
（Annual）

（％）

3,500

3,148.0

10

8

3,000

2,992.8

2,900.1

7.21
6.41

6

2,500

+247.9pt<Reference>
New solvency margin ratio effective
as of the end of FY11

March 31, 2011 : 1,720.0%
September 30, 2011 : 1,940.6%

4(0.16pt)

3.27

3.11

2

2,000

2.95

Variation factor from the previous standard ：◆Change of includable amount for margin calculation◆Stricter risk measurement

1,500
0

0
FY09

FY10

FY11

*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.

10.9.30

11.3.3111.9.30

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 September 30, 2011.
* New solvency margin ratio for Sony Life is also on P 34.

Percentage change figures are rounded10

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

400

Ordinary Profit(Billions of yen)

371.0

395.7

+6.7%

100

339.3
80

300

60

50.0

200

40
100

(42.9%)

36.4
28.5

20

0

0
FY09.1H

FY10.1H

FY09.1H

FY11.1H

FY10.1H

FY11.1H

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

11

Sony Life Operating Performance (5)Negative SpreadCore Profit(Billions of yen)(Billions of yen)40

20

+18.0%

30

28.5

31.6
15

26.8

20

10

10

5

8.8

4.1
(53.7%)

01.9

0FY09.1H

FY10.1H

FY11.1H

FY09.1H

FY10.1H

FY11.1H

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

12

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

5,000

2,500

4,036

4,019

4,017

4,000

2,089

3,961

2,072

2,064

2,035

2,000

(56)

(29)

3,000

1,500

2,000

1,000

1,000

500

00

0
10.3.3110.9.30

11.3.3111.9.30

10.3.3110.9.30

11.3.3111.9.30* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

Sony Life Operating Performance (7)Breakdown of General Account Assets(Billions of yen)

11.3.31<Asset management review>

11.9.30

Amount%Amount%3,499.980.9%

3,734.7

82.4%

Japanese stocks

64.0

1.5%

48.1

1.1%

44.2

1.0%

59.4

1.3%

10.3.3117.6 years

Foreign securities

11.3.3118.5 years

Foreign stocks

30.0

0.7%

29.7

0.7%

11.9.30

18.8 years

Monetary trusts

276.4

6.4%

286.7

6.3%

Policy loans

134.4

3.1%

137.0

3.0%

Real estate

75.1

1.7%

74.1

1.6%

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

Cash and call loans

80.0

1.9%

60.9

1.3%

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

Others

120.9

2.8%

98.9

2.2%

4,325.2

100.0%

4,529.9

100.0%

Japanese governmentand corporate bonds

TotalJapanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY11.

<Lengthened
asset duration><L

As of September 30, 2011: 88.8%, (As of March 31, 2011: 87.3%)

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit+7.6%(Billions of yen)

39.9

0.7

+9.3%

FY10.1H

Change

39.9

+2.8

+7.6%

Underwriting income

36.7

39.4

+2.7

+7.5%

Investment income

0.3

0.4

+0.0

+15.8%

36.4

39.1

+2.7

+7.6%

Underwriting expenses

27.9

29.7

+1.8

+6.5%

Investment expenses

－

0.0

+0.0

－

Operating, general andadministrative expenses

8.4

9.4

+0.9

+11.3%

Ordinary profit

0.6

0.7

+0.0

+9.3%

Net income

0.3

0.4

+0.0

+16.1%

Ordinary expenses

FY11.1H(Billions of yen)Ordinary revenues and ordinary profit increased year on year.
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 increased due to an increase in ordinary profit anda reversal of catastrophe reserve which offset the negative impactof the rising loss ratio.

FY11.1H

37.1

Ordinary revenues

37.1

0.6

FY10.1H(Billions of yen)
Underwriting reserves
Total net assets
Total assets

10.9.30

11.3.3111.9.30

Change from 11.3.31

62.3

64.0

67.6

+3.6

+5.6%

15.8

16.7

17.2

+0.4

+2.8%

103.9

109.3

114.6

+5.3

+4.8%

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

15

Overview of Performance:
Sony Assurance(Reasons for changes)(Billions of yen)

FY10.1H

FY11.1H

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

Direct premiums written

36.4

39.0

+7.3%

Net premiums written

36.7

39.4

+7.5%

Net losses paid

19.0

21.1

+11.4%

0.3

0.3(4.0%)Net loss ratio

58.2%

60.1%

+1.9ptNet expense ratio

24.7%

25.5%

+0.8ptCombined ratio

83.0%

85.7%

+2.7ptUnderwriting profit

Net 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 the reinforcementof corporate systems and infrastructure basedon the expansion of business operations.

 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.

10.9.30
Number of policies in force
Solvency margin ratio

11.3.3111.9.30

Change from 11.3.31+0.05 million

1.33 million

1.38 million

1.44 million

1,010.3%

981.4%

960.9%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

+4.1%(20.5pt)

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

16

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY10.1H

FY11.1H

FY10.1H

Change

Fire

71

66

(7.7%)

Marine－－－Personal accident*

3,551

3,645

+2.6%

Voluntary automobile

32,78335,338

+7.8%

－

－

－

36,40639,049+7.3%

Compulsory
automobile liability
Total

FY11.1H

Change(Millions of yen)

(Millions of yen)
Fire

3

64

－

Marine618+169.7%

Personal accident*

3,679

3,745

+1.8%

Voluntary automobile

32,64835,206

+7.8%

369

408

+10.6%

36,70739,443+7.5%

Compulsory
automobile liability
Total*SURE, medical and cancer insurance is included in personal accident.

Net losses paid
FY10.1H

FY11.1H

Change(Millions of yen)
Fire

0

40

－

Marine711+56.1%

776

867+11.7%

17,927

19,866+10.8%

319

410+28.3%

19,031

21,196+11.4%

Personal accident*
Voluntary automobile
Compulsory
automobile liability
Total

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

17

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

Ordinary Profit

Personal accident insurance(Millions of policies)(Billions of yen)

Number of policies in force

Other

+8.0%

1.44

2

1.33

(Billions of yen)
50

1.4

1.22
+7.5%

40
0.3

30

33.6

0.3

36.7
3.6

39.4
3.7

3.5

1.2

0.4
1
0.8

35.2
32.6

20

1.5
1.5

1
+9.3%

0.6

29.7

0.4
10

0.6

0.7

0.5

0.2

0

0
FY09.1H

FY10.1H

FY11.1H

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
FY09.1H

FY10.1H

FY11.1H

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

18

Sony Assurance Operating Performance (2)Reference
Net Expense Ratio +Earned/Incurred Loss Ratio
Earned/Incurred loss ratio

Net loss ratio

Net expense ratio

(%)

100

91.9

Combined Ratio(Net Expense Ratio + Net Loss Ratio)+1.9pt

95.2

94.2

(%)

96.1

100

89.1

79.2

80

69.5
60

69.7

85.7

83.0

+1.1pt

70.6

63.9

65.8

+2.7pt

85.6

83.3

80

+1.9pt

60

58.2

60.0
57.2

40

20

Net expense ratio

60.1

54.0

40

26.1

25.5

20

+0.8pt

25.2

24.7

25.5

FY09.1H

FY10.1H

FY11.1H

0

26.1

25.5

FY09

FY10

+0.8pt

25.2

24.7

25.5

FY09.1H

FY10.1H

FY11.1H

0

FY09

FY10

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

Sony Assurance Operating Performance (3)Solvency Margin Ratio(%)<Reference>(20.5pt)

1,200

1,010.3

New solvency margin ratio effective as of the end of FY11

981.4

960.9

March 31, 2011 : 631.0%
September 30, 2011 : 617.0%
Variation factor from the previous standard

800◆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, andSeptember 30, 2011.

400

010.9.30

11.3.3111.9.3020

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

15.4

Ordinary profit(1.9%)

15.1(Billions of yen)

FY10.1H

15.4

15.1

(0.2)

(1.9%)

Gross operating profit

8.3

9.3

+1.0

+12.6%+24.2%

6.3

7.8

+1.5

Net fees and commissions(0.07)

0.08

+0.15

－

Net other operating income

2.0

1.4

(0.6)

(30.8%)

General andadministrative expenses

6.3

6.8

+0.5

+8.0%

Ordinary profit

1.6

2.2

+0.5

+30.0%Net income

0.8

1.2

+0.4

+45.5%Net operating profit

1.8

2.3

+0.5

+28.7%

Change from 11.3.31

2.2+30.0%

FY10.1H

FY11.1H(Billions of yen)(Billions of yen)Ordinary revenues decreased but ordinary profit
increased year on year.
Gross operating profit increased ¥1.0 billion year on year due
mainly to an increase in net interest income.
- Net interest income increased ¥1.5 billion owing primarily to
an increase in interest income on loans led by the growing
balance of mortgage loans and a decrease in interest
expenses on yen deposits.
- Net other operating income decreased ¥0.6 billion reflecting
lower gains on bond dealing transactions.
Net operating profit increased, owing to an increase in grossoperating profit.
Customer assets decreased ¥11.8 billion from March 31, 2011reflecting a decreasing balance of investment trust under the
bear market and the negative impact of yen appreciation on
the foreign exchange conversion of foreign currency deposits.

ChangeOrdinary revenues

Net interest income

1.6

FY11.1H

10.9.30

11.3.3111.9.30

Securities

958.3

940.1

894.8

(45.2)(4.8%)

Loans

636.4

722.4

776.1

+53.7

+7.4%

Deposits

1,584.8

1,649.1

1,645.2(3.8)(0.2%)

Customer assets

1,683.6

1,755.5

1,743.7(11.8)(0.7%)

Total net assets

58.3

59.9

59.5

(0.4)

(0.7%)

1.1

0.4

(0.4)

(0.8)

－

1,700.7

1,761.8

1,769.2

+7.4

+0.4%

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

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

21

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)
10.9.30

11.3.3111.9.30

1,683.6

1,755.5

1,743.7(11.8)(0.7%)

Deposits

1,584.8

1,649.1

1,645.2(3.8)(0.2%)

Yen

1,241.7

1,289.8

1,284.3(5.5)(0.4%)

343.0

359.2

360.8

+1.6

+0.5%

98.8

106.4

98.5

(7.9)

(7.5%)

636.4

722.4

776.1

+53.7

+7.4%

Mortgage loans

581.3

656.0

697.8

+41.8

+6.4%

Others

55.0

66.4

78.2

+11.8

+17.9%+22+2.6%(Billions of yen)

Customer assets

Foreign currency
Investment trusts
Loans outstanding

Number of accounts (thousands)
Capital adequacy ratio (*2)(domestic criteria)

828

859

11.76%

10.84%*1881

10.52%

Change(0.32pt)*1 Loans in others include corporate loans of ¥70.4 billion.

 Yen deposits decreased due to a shift toforeign currency deposit driven by yen
appreciation and a difficulty in acquiring
new yen deposit in the low interest rate
conditions.
 Foreign currency deposit slightly
increased reflecting growing demand forsaving foreign currency under the market
fluctuation while the sharp hike in the yen
might have the negative impact on theforeign exchange conversion.
(Approx. ¥3.4 billion)
 Investment trusts decreased reflecting adecline in reference price though sales
volume rose steadily.
 Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P26.
.

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

22

Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference><Reference> On Managerial Accounting Basis(Billions of yen)

FY09.1H

FY10.1H

FY11.1H

7.7

8.2

9.3

+1.0

+12.8%Net interest income *1
①

6.6

7.2

8.7

+1.5

+21.5%Net fees andcommissions *2 ②

0.6

Net other operating
income *3

0.4

0.5

(0.0)

(0.5)

－

Gross operating profit(core profit) (A)
= ①＋②

7.2

7.7

9.3

+1.6

+21.3%

Operating expenses andother expenses ③

5.6

6.4

6.9

+0.5

+8.0%

Net operating profit(core profit)= (A)－③

1.6

1.2

2.4

+1.1

+88.7%

Gross operating profit

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

ChangeGross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses

0.5

0.6

+0.0

+19.2%

10●Managerial accounting basis
The following adjustments are made to the figures on a financial accounting basis toaccount for profits and losses more appropriately.

(Billions of yen)

9.3
+21.3%

8

7.7
7.2

+8.0%

6.4
6

6.9

5.6

4

*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.

2.4
2+88.7%

1.6

1.2●Core profit
0Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.
FY09.1H
FY10.1H
FY11.1H
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

23

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

Yield on financing

Yield on investment

(%)

2.00

1.50

1.00

1.44

1.42

0.87

0.88

0.57

0.53

0.50

1.40

1.41

1.41

+0.03pt

1.01

0.94

0.98

0.45

0.43

0.40

FY10.4Q

FY11.1Q

FY11.2Q

0.00
FY10.2Q

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

Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
and Number of Accounts
Yen deposits
Foreign currency deposits
Number of accounts (thousands)(Billions of yen)Mortgage loans

Investment trusts

Others*Including corporate loans of ¥70.4 billion.

(Billions of yen)
+22

859

828

Loans

881

+53.7

800

722.4

2,000

1,683.6

78.2*

1,743.7

1,755.5

636.4

98.5

600

(11.8)
1,500

776.1

360.8

1,000

Deposits
total:

400

697.8

1,645.2
1,284.3
200

500

0

0

10.9.30

11.3.3110.9.30

11.9.30

11.3.3111.9.30

Line item amounts are truncated below ¥100 million; number of accounts are truncated below 1,000 accounts.

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
（％）

(Billions of yen)

20

1,200

(45.2)
1,000

958.3

940.1

894.8

15

(0.32pt)
800
10

11.76
10.84

10.52

600

5

400

200

0
10.9.30010.9.30

11.3.3111.9.3111.3.3111.9.30* 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

Consolidated Financial Forecast
for the Year Ending March 31, 201227

Consolidated Financial Forecast
for the Year Ending March 31, 2012
FY10

Consolidated ordinary revenues

ChangeActualFY11
Forecast

1,002.2

1,022.0+ 2.0%+ 1.0%

FY10 actual vs.
FY11 forecast

Life insurance business

900.3

909.3

Non-life insurance business

74.1

80.4

+ 8.4%

Banking business

29.5

32.8

+ 11.0%(23.2%)

Consolidated ordinary profit

76.8

59.0

Life insurance business

72.1

53.0

(26.6%)

Non-life insurance business

2.1

2.6

+ 21.2%

Banking business

2.4

4.1

+ 70.3%

41.7

29.0

(30.5％)

Consolidated net income

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

1,000

1,002.2

1,022.0500

0SFH’s forecast of consolidated financial results for the fiscal year ending March 31, 2012, is unchanged from the forecast announced on May 20, 2011.

FY10 (Actual)■Life insurance business
Ordinary revenues for FY11 are expected to increase 1.0% year on year, to ¥909.3 billion. We anticipate that income frominsurance premiums will increase in line with steady growth of the policy amount in force. We expect ordinary profit to decrease
26.6% year on year, to ¥53.0 billion due to lower gains on sale of securities. During FY10, the business generated more net
capital gains through sale of securities than this fiscal year, reflecting the process of shifting bond holdings to ultralong-termbonds to reduce interest rate risk. (Operating results for the first half of this fiscal year exceeded our forecast announced on May
20, 2011, as insurance claims and other payments relating to the Great East Japan Earthquake were lower than our estimates asof the end of the previous fiscal year. However, our financial forecast for this fiscal year remains unchanged from the previous
announcement, of May 20, 2011, due mainly to uncertainty about the financial market environment for the second half of thisfiscal year.)

FY11 (Forecast)

Consolidated Ordinary Profit(Billions of yen)
100

Banking business
Non-life insurance businessLife insurance business

76.8
59.0

■Non-life insurance business
Ordinary revenues for FY11 are expected to rise 8.4% year on year, to ¥80.4 billion, due to an increase in net premiums written,
mainly for mainstay automobile insurance. Ordinary profit is expected to increase 21.2% year on year, to ¥2.6 billion, due
primarily to a rise in ordinary revenues and a reversal of catastrophe reserve which offset the negative impact of the rising loss
ratio, though the loss ratio for FY11 is expected to be higher than FY10.

50■Banking Business
Ordinary revenues for FY11, are expected to increase 11.0% year on year, to ¥32.8 billion, owing to an increase in net interest
income, bolstered mainly by a growing balance of loans, especially mortgages. Ordinary profit is expected to grow 70.3%, to ¥4.1
billion, from the previous fiscal year, as we anticipate a steady increase in gross operating profit, driven by business expansion.

0
FY10 (Actual)

FY11 (Forecast)(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)28

Appendix

29

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 (4 types, 5 products)
Sales Channels: Lifeplanner sales employees and partner Banks (7*) As of November 14, 2011
Financial Highlights for FY11.1H:
Number of new policies: 494, New policy amount: ¥3.7 billion
Number of policies in force: 1,694 policies, Policy amount in force: ¥16.6 billion

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 24% of the balance ofmortgage loans as of September 30, 2011
Sony Life accounts for 27% of the amount of
new mortgage loans for FY11.1H*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 FY11.1H* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

30

Recent Topics 2<Highlights from the FY11.2Q onward>
2011-7-01

Sony Bank acquired a 57% equity interest in SmartLink Network, Inc., an industry-leading provider of credit card settlement
services

2011-8-03

Sony Assurance began offering a free application, “Drivers’ Navigation” to smart phone users

2011-8-08

Sony Bank began offering new mortgage loan, named "Variable Select Mortgage Loan"

2011-8-22

Sony Bank opened representative office in Sydney

2011-8-31

Sony Assurance declared conformity with the ISO 10002 International Standard for Complaints Management Systems

2011-9-05

AEGON Sony Life Insurance began offering "Catch Point II," a new individual variable annuity product (GMAB Type 2011),
through SMBC

2011-9-05

AEGON Sony Life Insurance began offering "Winning Road II," an individual variable annuity product (GLWB Type 2011),
through Juroku Bank

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

2011-10-05

Sony Assurance opened its official page in “Facebook”(*) and its PR official account in “Twitter.”

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(*) Facebook is a refistered trademark of Facebook, Inc.

31

Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)Valuation 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’s Breakdown of Net Assets
Net Assets on BS, Real Net Assets and Solvency Margin(Billions of yen)
①Net Assets
(B/S)

②Real
Net Assets③Solvency
Margin11.3.3111.9.30

11.3.3111.9.30

11.3.3111.9.30

Total shareholders’ equity

209.8

216.4

209.8

216.4

200.7

216.4

Net unrealized gains on other securities, net of taxes

7.0
－
(1.4)
－

27.4
－
(1.4)
－

7.0
－
(1.4)
16.7

27.4
－
(1.4)
20.6

－
20.8
－
16.7

－
49.5
－
20.6

Contingency reserve

－

－

51.5

53.3

51.5

53.3

General reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate

－

－

1.9

1.9

1.0

1.0

－
－
－
－
－
－
215.3

－
－
－
－
－
－
242.4

334.2
1.1
－
－
(22.1)
8.0
606.9

342.1
0.9
－
－
148.8
19.6
829.9

334.2
1.1
0.6
63.3
－
－
690.3

342.1
0.9
0.6
72.2
－
－
756.9

Net unrealized gains (losses) on available-for-sale securities
Land revaluation, net of taxes
Reserve for price fluctuations

Excess amount of policy reserves based on Zillmer method
Unallotted portion of reserve for policyholders' dividends
Future profits
Deferred tax assets
Unrealized gains (losses) on held-to-maturity bonds
Deferred tax liabilities for available-for-sale securities
Total

Notes
③After estimateddistributed income
deducted③Before tax x 90%②Before tax（after revaluation）③Before tax(Before revaluation) X85%

②Before tax

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 ¥681.1 billion as of September 30, 2011.
Amounts are truncated below ¥100 million.

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 September 30, 2011.
Amounts are truncated below ¥100 million.

34

Status of Exposure in the five European countries

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

Sovereign bond

OthersSony Life

―

―

Sony
Assurance――

Sony Bank―¥1.6 Billion(Corporate bonds of Spanish company)(Note) As of September 30, 2011. Exposure of Sony Life is for general account assets.

35

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

36