Consolidated Financial Summary(Japanese GAAP)
for the Three Months Ended June 30, 2011
August 12, 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 three months ended June 30, 2011
(1) Operating results
Ordinary Revenues
Ordinary Profit
For the three months ended
June 30, 2011
For the three months ended
June 30, 2010

Note: Comprehensive Income:Millions of yen% change

256,8106.8

240,546（3.1）

Millions of yen

Net Income% change

Millions of yen% change

19,351（1.1）

10,883

4.9

19,558（10.8）

10,371（17.1）For the three months ended June 30, 2011: ¥23,423 million; 16.3％
For the three months ended June 30, 2010: ¥20,143 million; －％Net Income per ShareNet Income per Share(Fully Diluted)

Yen

Yen

For the three months ended
June 30, 2011
For the three months ended
June 30, 2010

25.02

—

23.84

—

Note: Although a stock split was conducted during the three months ended June 30, 2011, net income per share for the three months ended
June 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 June 30, 2011

6,705,637

309,601

4.6

As of March 31, 2011

6,597,140

294,877

4.5

Notes: 1. Shareholders’ equity:

As of June 30, 2011: ¥309,601 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

1st quarterYen

2nd quarterYen

3rd quarter
Yen

For the year ended———
March 31, 2011
For the year ending—
March 31, 2012
For the year ending——
March 31, 2012
(forecast)
Note: Sony Financial Holdings conducted a 200-for-1 stock split on April 1, 2011.

Year-end
Yen

Annual Total
Yen

20.00

20.00

20.00

20.00

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

Ordinary Profit

Millions of yen % change Millions of yen

For the six months ending
September 30, 2011
For the year ending
March 31, 2012

% change

Net Income per
Share

Net Income
Millions of yen% changeYen

497,000

0.2

27,000(47.6)

13,000(55.8)

29.89

1,022,000

2.0

59,000(23.2)

29,000(30.5)

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) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) 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
(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of June 30, 2011:
435,000,000 shares
As of March 31, 2011:
435,000,000 shares(b) Number of treasury shares
As of June 30, 2011:— shares
As of March 31, 2011:— shares(c) Weighted-average number of shares
For the three months ended June 30, 2011:
435,000,000 shares
For the three months ended June 30, 2010:
435,000,000 shares
Although a stock split was conducted during the three months ended June 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 number of shares
during the three months ended June 30, 2010 were calculated assuming that the stock split was conducted at the beginningof the previous fiscal year.

Status of quarterly review procedures
・Quarterly review procedures are completed by PricewaterhouseCoopers Aarata in accordance with Article 193-2-1 of the
Financial Instruments and Exchange Law of Japan. However, quarterly consolidated financial statements in this document are
not subject to such quarterly review procedures.
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)
Changes in accounting policies, accounting estimates and restatements of the consolidated

3

financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・

III Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・ 42.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・6(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・ 9
3.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・

10

4.

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

11(Attachment)
Consolidated Financial Results for the Three Months Ended June 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 June 30, 2011, on August 12, 2011 at 15:00 (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 16:30, August 12, 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 August 12, 2011, and its Q&A summary lateron Presentation Materials page on our website.
* On August 12, 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 thethree months ended June 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 three months ended June 30, 2011 (April 1, 2011 through June 30, 2011), consolidated ordinary revenues grew
6.8% compared with the same period of the previous fiscal year, to ¥256.8 billion, owing to increases in ordinary revenues
from the life insurance and the non-life insurance businesses, although the revenues were down in the banking business.
Consolidated ordinary profit decreased 1.1% year on year, to ¥19.3 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 losses, reversal of reserve for policyholders’ dividends and income taxes, net income forthe three months ended June 30, 2011, was up 4.9% year on year, to ¥10.8 billion.
Segment Information by Business< Life insurance business >In the life insurance business, ordinary revenues increased 7.1% year on year, to ¥229.3 billion, due to higher income frominsurance premiums associated with a steady increase in the policy amount in force. Ordinary income decreased 4.9% year on
year, to ¥17.6 billion due to lower gains on sale of securities, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, which offset the positive impact of a partial reversal of reserve foroutstanding claims, which was accumulated after the Great East Japan Earthquake of March 2011, and a decrease in provisionof policy reserves for minimum guarantees for variable life insurance.

< Non-life insurance business >In the non-life insurance business, ordinary revenues increased 7.4% compared with the same period of the previous fiscal
year, to ¥20.4 billion, due to increased net premiums written, as the number of insurance policies in force grew primarily for
automobile insurance. Ordinary profit increased 67.7% year on year, to ¥0.7 billion, due primarily to a rise in ordinary
revenues and a lower provision of reserve for outstanding losses.

< Banking business >In the banking business, ordinary revenues decreased 4.0% compared with the same period of the previous fiscal year, to ¥7.4
billion, owing mainly to a decrease in gains on foreign exchange transactions. Ordinary profit increased 74.8% year on year,
to ¥0.8 billion due to an increase in gross operating profit reflecting a decrease in interest expenses on yen deposits and anincrease in interest income on loans led by the growing balance of mortgage loans. The increase in gross operating profit
offset the negative impact of higher general and administrative expenses led primarily by personnel reinforcement of the
full-scale entry into credit card business.

Ordinary Revenues(Millions of yen)
For the three months ended
June 30, 2010
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the three months ended
June 30, 2011

Change (%)

214,171
19,052
7,752

229,356
20,469
7,445

7.1
7.4
(4.0)

240,976

257,272

6.8

(429)

(462)

7.5

240,546

256,8106.8

2

Ordinary Profit(Millions of yen)
For the three months ended
June 30, 2010

For the three months ended
June 30, 2011

Life insurance business
18,54917,636
Non-life insurance business
470
789
Banking business
510
891
Subtotal
19,53019,317
Intersegment adjustments*
28
33
Consolidated
19,55819,351*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

Change (%)
(4.9)
67.7
74.8
(1.1)
17.2
(1.1)

2. Qualitative Information on Consolidated Financial Position
As of June 30, 2011, total assets amounted to ¥6,705.6 billion, up 1.6% from March 31, 2011. Among major components ofassets, securities, mostly Japanese government bonds, amounted to ¥5,126.0 billion, up 1.9% from March 31, 2011. Loanscame to ¥883.3 billion, up 3.0%, and monetary trusts amounted to ¥294.6 billion, up 1.3%.
Total liabilities were ¥6,396.0 billion, up 1.5% from March 31, 2011. Major components of liabilities included policy
reserves and others of ¥4,596.8 billion, up 2.4%, and deposits totaled ¥1,663.2 billion, up 0.9%.
Total net assets were ¥309.6 billion, up 5.0% from March 31, 2011. This included net unrealized gains on other securities,
net of taxes, which increased ¥12.9 billion, to ¥21.4 billion.

3. Consolidated Financial Forecast for the Year Ending March 31, 2012
SFH’s forecast of consolidated financial results for the six months ending September 30, 2011 and for the fiscal year ending March 31,
2012, is unchanged from the forecast announced on May 20, 2011.

II. Notes Regarding Summary Information (Others)
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 first quarter 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 Accounting Standard 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).

3

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

As of June 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)¥83,820
75,600294,648
5,126,085
883,337
76,562
26,778877
25,901367
8,606
90,08440,3881,000(1,643)

Total Assets¥6,597,140¥6,705,637

4

(Millions of yen)
As of March 31, 2011

As of June 30, 20101¥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¥4,596,868
45,1184,547,007
4,742
1,215
471
1,663,267
10,0002,000
6180,733
1,296
19,444298
18,685
18,6804693
1,000

6,302,263

6,396,035

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

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

19,900195,277
76,748291,925
21,481(2,041)(1,499)(264)
17,675

Total Net Assets

294,877

309,601¥6,597,140¥6,705,637

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
Total Liabilities
Net Assets

Total Liabilities and Net Assets

52. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the three months ended
June 30, 2010

For the three months ended
June 30, 2011

Ordinary Revenues¥240,546¥256,810

Ordinary Revenues from the Life Insurance Business

213,748

228,901

Income from insurance premiums

182,562

194,514

Investment income(Interest income and dividends)

30,27928,932

20,50523,149(Income from monetary trusts, net)

2,343

1,322

(Gains on sale of securities)

7,430

511

—

3,949

906

5,454

19,051

20,46818,86820,215

18,86020,208

7

7(Gains on separate accounts, net)
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

179

217

(Interest income and dividends)

186

206

(Gains on sale of securities)—

19(Transfer to interest and dividends on deposits of premiums)

(7)

(7)

Other ordinary income

3

35

7,746

7,439

5,893

6,123

(Interest income on loans)

3,039

3,243

(Interest income and dividends on securities)

Ordinary Revenues from the Banking Business
Interest income

2,796

2,870

Fees and commissions

546

557

Other operating income

1,297

735

1,034

405

7

23

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

6

(Millions of yen)
For the three months ended
June 30, 2010

For the three months ended
June 30, 2011

Ordinary Expenses¥220,987¥237,458

Ordinary Expenses from the Life Insurance Business

195,516

211,601

67,801
17,931
1,766
8,258
38,664681

71,39920,0981,911
8,271
40,048617

67,292772
66,514
4
32,94515479—
30,083
23,839108,166—
108,161
4
3,063
18
435
213
—
25,047

3,637
18,4693,924
19,568Underwriting expenses

14,302

15,007(Net losses paid)(Loss adjustment expenses)(Net commission and brokerage fees)(Provision for reserve for outstanding losses)(Provision for underwriting reserves)
Investment expenses

9,266
1,143
266
433
3,192
—

10,267
1,221
319
164
3,033
1

Operating, general and administrative expenses

4,156

4,556

10

3

7,001

6,288

2,720
2,194
298

2,260
1,783
294

466

159

3,338

3,503

175

70

19,55819,351

Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Other payments)
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 separate accounts, net)
Operating expenses
Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business

Other ordinary expenses
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary Profit(Continued)

7

(Millions of yen)
For the three months ended
June 30, 2010
Extraordinary Gains

For the three months ended
June 30, 2011

0
0

—
—

1,915
10

1,874
6

0

0

290

—

1,613

1,867

1,613

1,867

299

(6)

Income Before Income Taxes

17,344

17,483

Income Taxes

6,972

6,600

- Current

7,758

5,211

- Deferred

(785)

1,388

Income Before Minority Interests

10,371

10,883Net Income

10,371

10,883

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
Provision for reserve for price fluctuations
Provision (Reversal) for Reserve for Policyholders’ dividends

82. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the three months ended
June 30, 2010

For the three months ended
June 30, 2011

Income Before Minority Interests¥10,371¥10,883

Other comprehensive income
Net unrealized gains on other securities, net of taxes

10,907

12,957(1,243)

(482)

108

66

(0)

(0)

9,771

12,540Comprehensive income

20,14323,423(Details)
Comprehensive income attributable to parent company

20,14323,423Comprehensive income attributable to minority interests——

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

93. Segment Information
For the three months ended June 30, 2010
(1) Segment Information by reportable segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥ 213,748
422
214,171¥ 18,549

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥ 19,051
0
19,052¥ 470¥ 7,746
6
7,752
¥ 510

Total

¥ 240,546
429
240,976¥ 19,530(2)Reconciliations of the total of reportable segments’ profit to quarterly consolidated statement of income

Total of reportable segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income

Millions of yen¥ 19,530325¥ 19,558(3) Information on impairment losses on fixed assets and goodwill by reportable segment
None

For the three months ended June 30, 2011
(1) Segment Information by reportable segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥ 228,901
455
229,356¥ 17,636

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥ 20,468
020,469¥ 789¥ 7,439
6
7,445
¥ 891

Total

¥ 256,810
462
257,272¥ 19,317(2) Reconciliations of the total of reportable segments’ profit to quarterly consolidated statement of income

Total of each reportable segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income

Millions of yen¥ 19,3172
30¥ 19,351(3) Information on impairment losses on fixed assets and goodwill by reportable segment
None

10

4. 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 three months ended June 30, 2010 and 2011, net income per share was ¥23.84 and ¥25.02. There were no potentiallydilutive securities.
The basis for this calculation for the three months ended June 30, 2010 and 2011 is net income of ¥10,371 millionand ¥10,883 million, the entire amounts of which are applicable to common stock. The weighted-average number of shares
outstanding for the three months ended June 30, 2010 and 2011, was 435 million.
Note: Although a stock split was conducted during the three months ended June 30, 2011, net income per share for the three months
ended June 30, 2010, was calculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

11

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 three months ended June 30, 2011, includes Sony Financial Holdings Inc., Sony Life
Insurance Co. Ltd., Sony Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, and Sony Bank
Securities Inc. It also includes AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies
accounted for under the equity method.

On July 28, 2011, Sony Corporation announced its consolidated financial results for the firstquarter ended June 30, 2011. SFH Group companies constitute the majority of Sony Group’s
Financial Services segment. However, the scope 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 July 28, 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

12

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

Consolidated Operating Results for the Three Months Ended June 30, 2011・・・・・・・・ P.2
Consolidated Financial Forecast for the Year Ending March 31, 2012・・・・・・・ P.27
Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P.29

Presentation Material

Consolidated Financial Results
for the Three Months Ended June 30, 2011

Sony Financial Holdings Inc.
August 12, 2011

Content■Consolidated Operating Results for the Three Months Ended June 30, 2011

P.2

■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.

1Consolidated Operating Results for
the Three Months Ended June 30, 2011

2

Management Review

For the three months ended June 30, 2011, consolidated ordinary
revenues increased and consolidated ordinary profit was nearly flat year
on year. The damage from the Great East Japan Earthquake on ouroperating results was limited.

The life insurance business continued to grow in its policy amount in force,due to favorable sales of mainstay death-protection type and third-sector
insurance products such as living benefit and nursing-care insurance.

The non-life insurance business enjoyed brisk sales. The last year’s
upward trend in the loss ratio for automobile insurance showed signs ofslowing in this first quarter.

The banking business has improved its interest spread along with agrowing balance of mortgage loans under unfavorable business conditionsof low interest rates.

3

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

Ordinary revenues

Ordinary profit

+6.8%

256.8

229.3

+15.1

+7.1%

Ordinary profit

18.5

17.6

(0.9)

(4.9%)

Non-life
insurancebusiness

Ordinary revenues

19.0

20.4

+1.4

+7.4%

Ordinary profit

0.4

0.7

+0.3

+67.7%

Ordinary revenues

7.7

7.4

(0.3)

(4.0%)

Ordinary profit

0.5

0.8

+0.3

+74.8%

(0.4)

(0.4)

(0.0)

+7.5%

0.0

0.0

+0.0

+17.2%

240.5

256.8

+16.2

+6.8%

Ordinary profit

19.5

19.3

(0.2)

(1.1%)Net income

10.3

10.8

+0.5

+4.9%

Intersegment
adjustments*

FY10.1Q

214.1

ChangeOrdinary revenues

Bankingbusiness

Ordinary revenues
Ordinary profit
Ordinary revenues

19.3
Consolidated

19.5

FY11.1Q

Life
insurancebusiness

240.5(1.1%)

FY10.1Q

FY11.1Q(Billions of yen)(Billions of yen)

10.6.30

11.3.3111.6.30

Change from 11.3.31

Total
assets

6,085.4

6,597.1

6,705.6+108.4

+1.6%

283.0

294.8

309.6

+14.7

+5.0%

Consolidated
Net assets*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY10.1Q: ¥20.1 billion, FY11.1Q: ¥23.4 billion yen
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2011 (2) Life Insurance: Ordinary revenues increased year on year, due to higher income from insurance

premiums associated with a steady increase in the policy amount in force. Ordinary profit decreasedslightly due to lower gains on sale of securities, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, which offset the positive impact of a partial reversal ofreserve for outstanding claims, which was accumulated after the Great East Japan Earthquake ofMarch 2011, and a decrease in provision of policy reserves for minimum guarantees for variable life
insurance.
 Non-life Insurance: Ordinary revenues increased year on year, due to increased net premiums written,

as the number of insurance policies in force grew primarily for automobile insurance. Ordinary profit
increased owing primarily to a rise in ordinary revenues and a lower provision of reserve foroutstanding losses.
 Banking: Ordinary revenues decreased, owing mainly to a decrease in gains on foreign exchangetransactions. Ordinary profit increased due to an increase in gross operating profit reflecting adecrease in interest expenses on yen deposits and an increase in interest income on loans led by thegrowing balance of mortgage loans. The increase in gross operating profit offset the negative impact ofhigher general and administrative expenses led primarily by personnel reinforcement of the full-scale
entry into credit card business.
 Consolidated ordinary revenues increased 6.8% year on year, to ¥256.8 billion, however, consolidated

ordinary profit decreased 1.1%, to ¥19.3 billion. Net income increased 4.9%, to ¥10.8 billion

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

FY10.1Q

FY11.1Q

214.1

229.3

+15.2

Income from insurance premiums

182.6

194.6

+11.9

+6.6%

Investment income

30.3

29.0

(1.3)

(4.3%)

Interest income and dividends

20.5

23.2

+2.6

+13.0%

Income from monetary trusts, net

2.3

1.3

(1.0)

(43.6%)

Gains on sale of securities

7.4

0.5

(6.9)

(93.1%)

Gains on separate accounts, net

－

3.9

+3.9

－

195.2

211.3

+16.1

+8.3%

Insurance claims and other payments

67.7

71.3

+3.5

+5.3%

Provision for policy reserves and others

67.2

108.1

+40.8

+60.8%

Investment expenses

32.9

3.0

(29.8)(90.6%)

Losses on sale of securities

0.4

0.4

(0.0)

(9.1%)

Losses on separate accounts, net

30.0

－

(30.0)(100.0%)(Billions of yen)

Ordinary profit
Ordinary revenues

229.3

+7.1%

214.1

Ordinary expenses

17.9(4.9%)

18.8

FY10.1Q

FY11.1Q(Billions of yen)

Operating expenses

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 saleof securities, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, which offset thepositive impact of higher interest income and dividends
in the general account assets.

+7.1%

23.8

25.1

+1.2

+5.2%

Ordinary profit

18.8

17.9

(0.9)

(4.9%)Net income

10.1

10.1

+0.0

+0.1%

10.6.30

11.3.3111.6.30

Change from 11.3.31

Securities

3,646.2

4,017.5

4,119.0+101.4

Policy reserves

4,052.1

4,371.4

4,479.6+108.1+2.5%

Total net assets

205.2

215.3

228.4

+13.0

+6.1%

(Billions of yen)Ordinary profit decreased slightly due to lower gains on saleof securities, which offset the positive impact of a partial reversal of

Changereserve for outstanding claims, which was accumulated after the

Net unrealized gains on other securities

+2.5%

26.2

7.0

18.9

+11.9

+170.4%

4,343.1

4,723.3

4,807.7

+84.3

+1.8%

349.4

398.1

408.6

+10.5

+2.6%

Great East Japan Earthquake of March 2011, and a decrease in
Total assets

provision of policy reserves for minimum guarantees for variable life
insurance.

Separate account assets

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

6

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

FY10.1Q

New policy amount
Lapse and surrender amount

FY11.1Q

Change1,065.3

1,054.4(1.0%)

527.8

530.3

+0.5%

Lapse and surrender rate

1.58%

1.53%

(0.05pt)

Policy amount in force

33,819.2

35,073.4+3.7%

Annualized premiums from new policies

18.1

17.1

(5.1%)Of which, third-sector products

4.1

4.2

+2.5%

582.4

611.5

+5.0%

135.0

143.1

+6.0%

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

FY10.1Q

FY11.1Q

ChangeGains from investment, net (General account)

27.4

21.9

Core profit

11.7

19.2

+62.9%

Negative spread

2.6

1.3

(50.0%)

10.6.30

11.3.3111.6.30

Changefrom
11.3.312,810.0%2,900.1%

3,024.0%+123.9pt

Solvency Margin Ratio(Reasons for changes)
 Decreased, due mainly to lower sales of family
income insurance, which is life insurance withdisability benefit.
 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 and cancer
hospitalization insurance.
 Increased, due mainly to higher sales of nursingcare insurance and living benefit insurance(20.0%)

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.

 Decreased due to lower gains on sale of securities
despite an increase in interest income anddividends.
 Increased reflecting the positive impact of a partial
reversal of reserve for outstanding claims, which
was accumulated after the Great East Japan
Earthquake of March 2011, a decrease inprovision of policy reserves for minimum
guarantees for variable life insurance, and a
decline in negative spread.

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)

Number of new policies(Thousands of policies)

155(3.6%)Of which, third-sector(Billions of yen)

150

144

Annualized premiums from new policies

20

15,0001.5

18.1(5.1%)

17.1

16.0
1.05

1.06
10,000
1.0

15

100

0.93

(1.0%)

10

5,000
0.5
+2.5%

5

FY09.1Q

FY10.1Q

4.1

4.2

FY09.1Q

FY10.1Q

FY11.1Q

0

0

0

3.9

FY11.1Q

Line 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

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)
+6.4%
50

5.09

5.34

5.42

(Billions of yen)

+1.5%

700

+5.0%
5
600

40

+3.7%

33.8

35.0

34.7

4

611.5

604.7

582.4

+1.1%

500

+0.9%
30
3

400

300

20
2

200

+6.0%
10

1
100

0

0

10.6.30

11.3.3111.6.30

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

135.0

140.7

10.6.30

11.3.31

+1.7%

143.1

0

11.6.30

Line item amounts are truncated below ¥100 million;
percentage change figures are rounded9Sony Life Operating Performance (3)Lapse and Surrender Rate*

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

Lapse and surrender rate
（3M）

Lapse and surrender rate
（Annual）

10

3,500

+123.9pt

8

3,000

7.21

2,810.0

3,024.02,900.1

6.41
6<Reference>
New solvency margin ratio effective
as of the end of FY11

2,500

March 31, 2011 : 1,720.0%
June 30, 2011 : 1,833.5%

4

1.67

2

1.58

(0.05pt)

1.53

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

2,000◆Stricter risk measurement

0
1,500

0
FY09

FY10

10.6.30

FY11.1Q*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.

11.3.3111.6.30

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

Percentage change figures are rounded

10

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

Ordinary Profit(Billions of yen)

194.6
200

30

182.6
165.9

+6.6%

20.7

17.9

18.8

20

(4.9%)

100

10

0

0
FY09.1Q

FY10.1Q

FY11.1Q

FY09.1Q

FY10.1Q

FY11.1Q

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)

19.2
20

20

16.5

+62.9%

15

15

11.7
10

10

5

5

4.5
(50.0%)

2.6
0

1.3

0
FY09.1Q

FY10.1Q

FY11.1Q

FY09.1Q

FY10.1Q

FY11.1Q

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)

4,036

2,500

4,021

4,017

3,975

4,000

2,089

2,064

2,064

2,034

2,000

(42)

(30)

1,500

3,500

1,000

500

3,000
0

0
2010.3.31

2010.6.30

2011.3.31

2011.6.30

2010.3.31

2010.6.30

2011.3.31

2011.6.30* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

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

11.6.30(Billions of yen)Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY11.

Amount%Amount%3,499.980.9%

3,586.6

81.5%

Japanese stocks

64.0

1.5%

62.2

1.4%

10.3.3117.6 years

Foreign securities

44.2

1.0%

52.7

1.2%

11.3.3118.5 years

11.6.30

18.5 years

Japanese governmentand corporate bonds<Lengthened
asset duration><L

Foreign stocks

30.0

0.7%

30.2

0.7%

Monetary trusts

276.4

6.4%

280.3

6.4%

Policy loans

134.4

3.1%

134.5

3.1%

Real estate

75.1

1.7%

74.5

1.7%

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

Cash and call loans

80.0

1.9%

68.1

1.5%

■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%

109.4

2.5%

4,325.2

100.0%

4,399.1

100.0%Total

Japanese stocks: Maintained the ratio of stock
holding at the end of March 2009.

As of June 30, 2011: 87.9%, (As of March 31, 2011: 87.3%)

14Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

19.0

+7.4%

Ordinary profit(Billions of yen)

20.4

FY10.1Q+67.7%

FY11.1Q

Change

19.0

20.4

+1.4

+7.4%

Underwriting income

18.8

20.2

+1.3

+7.1%

Investment income

0.1

0.2

+0.0

+21.2%

18.5

19.6

+1.0

+5.9%

Underwriting expenses

14.3

15.1

+0.7

+4.9%

Investment expenses

－

0.0

+0.0

－

Operating, general andadministrative expenses

4.1

4.5

+0.4

+9.6%

Ordinary profit

0.4

0.7

+0.3

+67.7%Net income

0.2

0.4

+0.2

+73.1%

Ordinary revenues

0.7
0.4

FY10.1Q

Ordinary expenses

FY11.1Q(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 mainly to a rise inordinary revenues and a lower provision of reserve foroutstanding losses.

10.6.30

11.3.3111.6.30

Underwriting reserves

61.3

64.0

67.1

+3.0

+4.7%

Total net assets

15.7

16.7

17.2

+0.4

+3.0%

101.3

109.3

112.2

+2.8

+2.6%

(Billions of yen)

Total assets

Change from 11.3.31

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)

FY10.1Q

FY11.1Q

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

Direct premiums written

18.7

20.0

+6.9%

Net premiums written

18.8

20.2

+7.1%

Net losses paid

9.2

10.2

+10.8%

Underwriting profit

0.3

0.5

+78.6%Net loss ratio

55.2%

56.9%

+1.7ptNet expense ratio

23.9%

24.6%

+0.7ptCombined ratio

79.1%

81.4%

+2.3ptNet 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.
 Increased, due primarily to the reinforcementof corporate systems and infrastructure basedon the expansion of business operations.

 Increased, due to an increase in the numberof policies 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.

10.6.30

11.3.3111.6.30

Change from 11.3.31+0.02 million

Number of policies in force

1.3 million

1.38 million

1.41 million

Solvency margin ratio

1,029.7%

981.4%

996.5%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

+2.0%+15.1pt

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

FY10.1Q

FY10.1Q

ChangeFY11.1Q

Fire

31

32

+3.1%

Marine－－－Personal accident*

1,767

1,805

+2.2%

Voluntary automobile

16,93818,184

+7.4%

－

－

－

18,73720,022+6.9%

Compulsory
automobile liability
Total

FY11.1Q

Change(Millions of yen)

(Millions of yen)
Fire

1

61

+3,516.4%

Marine32(27.3%)

Personal accident*

1,824

1,875

+2.8%

Voluntary automobile

16,871

18,117+7.4%

Compulsory
automobile liability

158

150

(5.6%)

18,86020,208

+7.1%

Total

*SURE, medical and cancer insurance is included in personal accident.

Net losses paid
FY10.1Q

FY11.1Q

Change(Millions of yen)
Fire

0

7

+65,393.4%

Marine38+159.1%

Personal accident*

378

426

+12.8%

Voluntary automobile

8,732

9,627

+10.3%

Compulsory
automobile liability

153

197

+28.8%

9,266

10,267+10.8%

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)

1.41

+8.0%

30
(Billions of yen)

2

1.4

1.30

1.19

1.2

20

17.3

0.1

1.5

20.2

+7.1%

0.1

(Billions of yen)

Number of policies in force

Other

18.8

0.2

1.8

1.8

1.7

1
0.8

1

18.1
16.8
15.4

10

0.9

0.6
0.4

0.7

+67.7%

0.5

0.4

0.2
0

0
FY09.1Q

FY10.1Q

0
FY09.1Q

FY11.1Q

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.

FY10.1Q

FY11.1Q

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

91.9

Net loss ratio

Net expense ratio

（％）
100

Combined Ratio(Net Expense Ratio + Net Loss Ratio)（％）(0.4pt)

95.2

90.3

100

89.9

86.9

83.3

80

66.4
69.7
65.8

+2.3pt

85.6

81.4
76.5

80

60

79.1

(1.1pt)

65.3

62.3

+1.7pt

60

60.0
57.2

40

20

Net expense ratio

55.2

56.9

52.0

40

26.1

25.5

20

+0.7pt

24.6

23.9

24.6

FY09.1Q

FY10.1Q

FY11.1Q

0

26.1

25.5

+0.7pt

24.6

23.9

24.6

FY09.1Q

FY10.1Q

FY11.1Q

0

FY09

FY10

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>

1,200
New solvency margin ratio effective as of the end of FY11
+15.1pt

1,029.7

March 31, 2011 : 631.0%
June 30, 2011 : 640.3%

996.5

981.4

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, andJune 30, 2011.

400

010.6.30

11.3.3111.6.30

20

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

Ordinary profit(Billions of yen)

(3.9%)

7.7

0.7
FY10.1Q

7.4

1.1+47.6%

FY11.1Q(Billions of yen)Ordinary revenues decreased but ordinary profit
increased year on year.
Gross operating profit increased ¥0.4 billion year on
year due mainly to an increase in net interest income.
- Net interest income increased ¥0.6 billion owing
primarily to a decrease in interest expenses on yen
deposits and an increase in interest income on loans
led by the growing balance of mortgage loans.
- Net other operating income decreased ¥0.2 billion
reflecting lower gains on bond dealing transactions.
Net operating profit increased, owing to an increase ingross operating profit, which offset the negative impactof higher general and administrative expenses.
Customer assets increased ¥16.6 billion from March 31,
2011, of which deposit balance increased ¥15.4 billion.

FY10.1Q

ChangeFY11.1Q

Ordinary revenues

7.7

7.4

(0.3)

(3.9%)

Gross operating profit

4.0

4.5

+0.4

+10.6%+21.5%Net interest income

3.1

3.8

+0.6

Net fees and commissions

0.06

0.06

+0.00

+0.1%

Net other operating income

0.8

0.5

(0.2)

(30.6%)

General andadministrative expenses

3.1

3.3

+0.1

+6.1%

Ordinary profit

0.7

1.1

+0.3

+47.6%Net income

0.3

0.6

+0.2

+76.0%Net operating profit

0.8

1.1

+0.3

+38.9%

10.6.30

11.3.3111.6.30

Securities

903.0

940.1

930.3

(9.7)

(1.0%)

Loans

600.9

722.4

748.3

+25.8

+3.6%

Deposits

1,517.1

1,649.1

1,664.5

+15.4

+0.9%

Customer assets

1,613.0

1,755.5

1,772.2

+16.6

+0.9%

Total net assets

58.2

59.9

61.2

+1.2

+2.1%

1.0

0.4

1.4

+1.0

+250.2%

1,637.3

1,761.8

1,782.5

+20.7

+1.2%

(Billions of yen)

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

Change from 11.3.31

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)10.6.30

11.3.3111.6.30

1,613.0

1,755.5

1,772.2

+16.6

+0.9%

Deposits

1,517.1

1,649.1

1,664.5

+15.4

+0.9%

Yen

1,189.1

1,289.8

1,299.4

+9.6

+0.7%

327.9

359.2

365.0

+5.8

+1.6%

95.9

106.4

107.6

+1.1

+1.1%

600.9

722.4

748.3

+25.8

+3.6%

Mortgage loans

562.4

656.0

676.1

+20.0

+3.1%

Others38.4

66.4

72.1*1

+5.7

+8.7%

+10

+1.2%

Customer assets

Foreign currency
Investment trusts
Loans outstanding

Change(Reasons for changes)
 Foreign currency deposit increased
reflecting growing demand for saving
foreign currency under the market
fluctuation even though the sharp hike inthe yen might have the negative impact
on the foreign exchange conversion.

 Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

*1

809

859

869

12.20%

10.84%

10.65%

Number of accounts (thousands)
Capital adequacy ratio (*2)(domestic criteria)(0.19pt)*1 Loans in others include corporate loans of ¥64.4 billion.
*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)
Gross operating profit
Net interest income *1 ①

FY10.1Q

FY11.1Q

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

Change

4.0

4.5

+0.4

+10.6%

3.4

4.2

+0.8

+22.9%

Gross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses

Net fees andcommissions *2 ②

0.4

0.3

(0.1)

(25.7%)Net other operating
income *3

0.1

(0.0)

(0.2)

－

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

3.9

4.6

+0.6

+17.8%

Operating expenses andother expenses ③

3.2

3.3

+0.1

+3.2%

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

0.6

1.2

+0.5

+88.9%●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.

5(Billions of yen)
+17.8%

4.6

3.9
4

3.7
+3.2%

3.2
3

3.3

2.7

2

1.2
1

+88.9%

1.0
0.6●Core profit
0Profits and losses exclude net other operating income, which includes those on bond andFY09.1Q
FY10.1Q
FY11.1Q
derivative dealing transactions, and stands for Sony Bank’s basic profits.
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

1.5

1.44

1.44

1

1.42

0.86

0.87

0.88

0.58

0.57

0.53

1.41

1.40

0.94

0.5

+0.04pt

0.98

0.45

0.43

FY10.4Q

FY11.1Q

0
FY10.1Q

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)

Investment trusts

Loans
Mortgage loans

Others*Including corporate loans of ¥64.4 billion.

(Billions of yen)
+10

859

869

+25.8

748.3

800

809

722.4

2,000

1,755.5
1,613.0

1,772.2
+16.6

72.1*

107.6

600.9
600

1,500

365.0

400

1,000

Deposits
total:

676.1

1,664.5
1,299.4
200

500

0

0

10.6.30

11.3.3111.6.30

10.6.30

11.3.3111.6.30

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

(9.7)
1,000

903.0

940.1

930.3

15

(0.19pt)

800

12.20
10

10.84

600

400

10.65

5

200
0
10.6.30

11.3.3111.6.30

0
10.6末

11.3末

11.6末

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

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

Consolidated ordinary revenues

FY10

1H FY11

ActualForecast

FY11
Forecast

ChangeFY10 actual vs.

1,002.2

497.0

1,022.0+ 2.0%+ 1.0%

Life insurance business

900.3

442.0

909.3

Non-life insurance business

74.1

40.1

80.4

+ 8.4%

Banking business

29.5

15.8

32.8

+ 11.0%(23.2%)

Consolidated ordinary profit

76.8

27.0

59.0

Life insurance business

72.1

25.0
(change)

53.0(26.6%)

Non-life insurance business

2.1

0.3

0.7

2.6

+ 21.2%

Banking business

2.4

1.7

4.1

+ 70.3%

41.7

13.0

29.0

(30.5％)

Consolidated net income

Consolidated Ordinary Revenues

FY11 forecast

SFH’s forecast of consolidated financial results for the six months ending September 30, 2011 and for the fiscal year ending March 31, 2012, isunchanged from the forecast announced on May 20, 2011.

1,000

1,002.2

1,022.0500

0FY10 (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. During FY10, the business generated net capital gains of ¥23.8 billion, reflecting theprocess of shifting bond holdings to ultralong-term bonds to reduce interest rate risk. However, we do not anticipate gains on
the sale of securities for FY11.

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

FY11 (Forecast)

Consolidated Ordinary Profit(Billions of yen)
100

Banking business
Non-life insurance businessLife insurance business■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
mainly to the aforementioned increase in ordinary revenues and an expected improvement in the loss ratio in line with the
February 2011 revision of automobile insurance premiums. This should offset an expected increase in the expense ratio in linewith the planned reinforcement of corporate systems and infrastructure based on the expected expansion of business
operations.

76.8
59.0
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 businessexpansion that should offset an increase in general and administrative expenses related to new product and service
development.

0
FY10 (Actual)

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

Appendix29

Recent Topics 1
AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20
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 (5 types, 6 products)
Sales Channels: Lifeplanner sales employees and partner Banks (7*)(7 ) As of August 12
12, 2011
Financial Highlights for FY11.1Q:
Number of new policies: 219, New policy amount: ¥1.6 billion
Number of policies in force: 1,425 policies, Policy amount in force: ¥15.2 billion

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 24% of the balance ofmortgage loans as of June 30, 2011
Sony Life accounts for 27% of the amount of
new mortgage loans for FY11.1Q
Sony Life started handling banking agency business in January 2008.
2008
*Sony

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY11.1Q* 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 for FY11.1Q>
2011-4-01

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

2011-4-28

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

2011-5-01

Sony Bank entered credit card business; began issuing “Sony Card”

2011 5 02
2011-5-02

Sony Life began sales of new income protection insurance to cover three major diseases (type II)2011-5-16

Sony Bank began offering Brazilian real for foreign currency deposits

2011-7-01

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

2011-8-01

Sony Bank added three monthly-dividend-type funds and an equity fund to its investment trust lineups
AEGON Sony Life Insurance began offering new individual variable annuity products, Winning Road II (GLWB type 2011) andW Account II (GMAB Type 2011)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"

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)

11.3.31②RealNet Assets

11.6.30

11.3.31③Solvency
Margin11.6.30

11.3.3111.6.30

Total shareholders’ equity

209.8

210.9

209.8

210.9

200.7

210.9

Net unrealized gains on other securities, net of taxes

7.0
－
(1.4)
－

18.9
－
(1.4)
－

7.0
－
(1.4)
16.7

18.9
－
(1.4)
18.6

－
20.8
－
16.7

－
37.6
－
18.6

Contingency reserve

－

－

51.5

52.4

51.5

52.4

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

－
－
－
－
－
－
228.4

334.2
1.1
－
－
(22.1)
8.0
606.9

337.9
1.0
－
－
63.2
14.8
718.5

334.2
1.1
0.6
63.3
－
－
690.3

337.9
1.0
0.6
69.1
－
－
729.4

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 ¥655.3 billion as of June 30, 2011.

Amounts are truncated below ¥100 million.

33

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

11.6.30
(New)
729.4

673.9

Common stock, etc

210.9

210.9

Reserve for price fluctuations

18.6

18.6

Contingency reserve

52.4

52.4

General reserve for possible loan losses

0.0

0.0

37.6

37.6

Total solvency margin(A)

Net unrealized gains on other securities
multiplied by 90% if gains or 100% if losses
Net unrealized gains on real estate
multiplied by 85% if gains or 100% if losses

1.0

1.0

337.9

337.9

Unallotted portion of reserve for policyholders' dividends

1.0

1.0

Future profits

0.6

Deferred tax assets

69.1

Subordinated debt-

Excess amount of policy reserves based on Zillmer method

That portion of the excess amount of policy reserves based on
Zillmer method and subordinated debt that is not included in the margin
Deductible items

Total risk
Insurance risk

(B)
R1

69.1
(54.8)

-

-

48.2

73.5

20.2

20.2

Third-sector insurance risk

R8

7.3

7.3

Assumed interest rate risk

R2

11.6

28.0

Asset management risk

R3

17.0

29.0

Business management risk

R4

1.3

1.8

Minimum guarantee risk

R7

9.2

8.9

3,024.0%

1,833.5%

Solvency margin ratio [(A)/{(B)×1/2}]×100

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 June 30, 2011.

Amounts are truncated below ¥100 million.

34

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

35