Consolidated Financial Summary(Japanese GAAP)
for the Three Months Ended June 30, 2013
August 12, 2013
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Katsumi Ihara, President and Representative Director
Representative:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
Inquiries:(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the three months ended June 30, 2013
(1) Operating results
Ordinary Profit
Ordinary Revenues

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

312,80912.8

17,025

10.4

9,647

0.4

277,239

8.0

15,424(20.3)

9,613(11.7)For the three months
ended June 30, 2013
For the three months
ended June 30, 2012
Note: Comprehensive Income:For the three months ended June 30, 2013: ¥(13,343) million:
For the three months ended June 30, 2012: ¥ 17,714 million:

Net Income per
Share(Fully Diluted)

Net Income per
Share
Yen

For the three months
ended June 30, 2013
For the three months
ended June 30, 2012－％(24.4)％

Yen

22.18

—

22.10

—

(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of June 30, 2013

8,211,338

411,226

5.0

As of March 31, 2013

8,096,164

435,444

5.4

Note: Shareholders'equity:

As of June 30, 2013 : ¥409,893 million
As of March 31, 2013: ¥434,105 million

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2013
For the year ending
March 31, 2014
For the year ending
March 31, 2014
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

—

0.00

—

25.00

25.00

0.00

—

30.00

30.00

—

Note: Revisions of dividend forecast since the most recent public announcement: Yes
SFH revised its year-end per-share dividend forecast to ¥30 for the year ending March 31, 2014, up ¥5 from the previous forecast of ¥25. For further information,please see page 3.

3. Forecast of consolidated financial results for the year ending March 31, 2014
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues
For the year ending
March 31, 2014

Ordinary Profit

Net Income per
Share

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,222,000(2.9)

69,000(12.9)

37,000(17.9)

Yen

85.06

4. Notes(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying changes inscope 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

Notes: For details, please refer to the section entitled “Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements” under “Ⅱ. Notes Regarding Summary Information” on page 4 of the attachment.

(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of June 30, 2013:
As of March 31, 2013:(b) Number of treasury shares
As of June 30, 2013:
As of March 31, 2013:(c) Weighted-average number of shares
For the three months ended June 30, 2013:
For the three months ended June 30, 2012:

435,000,000 shares
435,000,000 shares
1 shares— shares434,999,999 shares
435,000,000 shares

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 notsubject to such quarterly review procedures.

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, 2014・・・・・・・・・・・・

3

Notes Regarding Summary Information
Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

III.

4

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2.

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

5
7(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・・ 10

IV.

3.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11

4.

Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11

Attachment
Consolidated Financial Results for the Three Months Ended June 30, 2013 and Sony Life’s
Market Consistent Embedded Value as of June 30, 2013・・・・・・・・・・・・・・・・・・・・・・・ 13* The Conference Call for explaining the Sony Financial Group financial results will be held at 16:00 (Tokyo),
August 12, 2013.
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, 2013 after 15:00, and its Q&A
summary at a later date on Earnning Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/web/en/financial_info_e/results.html* On August 12, 2013, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce their financial results forthe three months ended June 30, 2013. SFH prepared an English-language summary of those Japanese
announcements made by the above subsidiaries, solely for convenience of non-Japanese readers.

1I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
During the three months ended June 30, 2013 (April 1, 2013 to June 30, 2013), consolidated ordinary revenues increased
12.8% compared with the same period of the previous fiscal year, to ¥312.8 billion, owing to increases in ordinary revenues
from the all businesses: life insurance, non-life insurance and banking. Consolidated ordinary profit increased 10.4% year
on year, to ¥17.0 billion. By business segment, ordinary profit from the non-life insurance and banking businesses increased
year on year, whereas ordinary profit from the life insurance business remained at the same levels as during the same periodof the previous fiscal year.
After accounting for extraordinary losses, provision for reserve for policyholders’ dividends, income taxes, consolidated
net income for the three months ended June 30, 2013 was up 0.4% year on year, to ¥9.6 billion. This is mainly because thebanking business recorded profit for the same period of the previous fiscal year, due to the tax effect of recording deferred
tax assets on the transfer of all shares of Sony Bank Securities, a wholly owned subsidiary of Sony Bank.

Segment Information by Business< Life insurance business >In the life insurance business, insurance premiums increased 1.6% compared with the same period of the previous fiscal year,to ¥221.3 billion, owing to a steady growth in policy amount in force, despite a decrease in lump-sum payment insurance
premiums, affected by the revision of Sony Life’s insurance premium rates on some of its products in April 2013.
Investment income increased 100.4% year on year, to ¥55.8 billion, due to higher gains on separate account, net resulting
from the market recovery. As a result, ordinary revenues increased 13.4% year on year, to ¥280.9 billion. Ordinary profit
decreased 2.9% year on year, to ¥13.3 billion. This is because the positive effects stemming from a decrease in provision ofpolicy reserves for minimum guarantees for variable life insurance and a recovery from negative spread into positive at Sony
Life were offset by the negative impact from an increase in provision of policy reserves resulting from the revision of discountrate used for calculating policy reserves.

< Non-life insurance business >In the non-life insurance business, net premiums written increased 5.9% compared with the same period of the previous fiscal
year, to ¥22.7 billion, due to an increase in the number of insurance policies in force for its mainstay automobile insurance.
Consequently, ordinary revenues rose 6.2% year on year, to ¥23.0 billion. Ordinary profit increased 84.9% year on year, to¥1.3 billion, due mainly to a decline in the loss ratio led by a lower car accident ratio and the revision of premium rates forautomobile insurance, in addition to the increase in ordinary revenues.

< Banking business >In the banking business, ordinary revenues increased 12.5% compared with the same period of the previous fiscal year, to¥9.4 billion, due to a rise in interest income on loans led by the growing balance of mortgage loans and higher gains on
foreign exchange transactions stemming from customers’ active foreign currency trading. Ordinary profit increased 154.1%
year on year, to ¥2.2 billion, due to an increase in profit stemming from improved investment performance, including
valuation gains on derivatives, net held for hedging interest rate risk on mortgage loans and other assets.

2

Ordinary Revenues(Millions of yen)
For the three months ended
June 30, 2012
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the three months ended
June 30, 2013

Change (%)

247,671
21,751
8,371

280,945
23,091
9,416

13.4
6.2
12.5

277,794

313,454

12.8

(554)

(644)

-

277,239

312,80912.8

Ordinary Profit(Millions of yen)
For the three months ended
June 30, 2012
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments*
Consolidated

For the three months ended
June 30, 2013

Change (%)

13,770725
886

13,370
1,342
2,252

(2.9)
84.9
154.1

15,382
41

16,965
59

10.3
44.2

15,424
17,025*Amounts in “Intersegment adjustments” of Ordinary profit’s table are mainly from SFH.

10.4

2. Qualitative Information on Consolidated Financial Position
As of June 30, 2013, total assets amounted to ¥8,211.3 billion, up 1.4% from March 31, 2013. Among major components ofassets, securities, mostly Japanese government bonds, amounted to ¥6,271.1 billion, up 1.1% from March 31, 2013. Loanscame to ¥1,136.8 billion, up 1.9%, and monetary trusts amounted to ¥314.7 billion, down 3.0%.
Total liabilities were ¥7,800.1 billion, up 1.8% from March 31, 2013. Major components of liabilities included policy
reserves and others of ¥5,752.7 billion, up 2.7%, and deposits totaled ¥1,848.9 billion, down 0.4%.
Total net assets were ¥411.2 billion, down 5.6% from March 31, 2013. This included net unrealized gains on othersecurities, net of taxes, which decreased ¥23.5 billion, to ¥64.8 billion, due mainly to a decline in bond price brought by a risein interest rates.

3. Consolidated Financial Forecast for the Year Ending March 31, 2014
SFH’s forecast of consolidated financial results for the fiscal year ending March 31, 2014 (April 1, 2013 to March 31, 2014),
is unchanged from the forecast announced on May 9, 2013.
SFH will revise the year-end per-share dividend forecast for the year ending March 31, 2014, to ¥30, up ¥5 from the previous
forecast of ¥25. SFH will strive to expand returns to shareholders based on its dividend policy that aims for steady increases in
dividends in line with earnings growth over the medium to long term, while considering the business environment andfinancial soundness of its Group companies. Based on this policy, SFH has decided to consecutively increase the year-end
dividend forecast for the year ending March 31, 2014, following the dividend increase for the prior fiscal year, after updating
the recent business environment, business performance, and other factors.
Today, SFH separetely released the Revision of Dividend Forecast for the Year Ending March 31, 2014.

3

Ⅱ. Notes Regarding Summary Information
Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements
Changes in accounting policies(Application of Accounting Standards for Consolidated Financial Statements)
From the first quarter of the fiscal year under review, the Sony Financial Group has begun applying the “Accounting Standard
for Consolidated Financial Statements” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 22 (March 25, 2011), the“Guidance on Disclosures about Certain Special Purpose Entities” (ASBJ Guidance No. 15, March 25, 2011), the “Guidance on
Determining a Subsidiary and an Affiliate” (ASBJ Guidance No. 22, March 25, 2011) and the “Practical Solution on Applicationof the Control Criteria and Influence Criteria to Investment Associations” (ASBJ PITF No. 20, March 25, 2011).
This application has no impact on retained earnings at the beginning of the first quarter of the fiscal year under review.

4Ⅲ. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2013

As of June 30, 2013

Cash and due from banks¥104,142¥191,659

Call loans and bills bought

107,088

24,840

Monetary trusts

324,305

314,729

Securities

6,202,333

6,271,194

Loans

1,115,330

1,136,853

Tangible fixed assets

73,21770,992Intangible fixed assets

38,232

36,991

AssetsGoodwill

258

238

Others37,97436,753Due from reinsurers

110

250

Foreign exchanges

7,954

6,905

Other assets

107,345

133,210Deferred tax assets

17,98025,527

Reserve for possible loan losses(1,877)(1,818)¥8,096,164¥8,211,338

Total Assets

5

(Millions of yen)
As of March 31, 2013

As of June 30, 2013

¥5,601,060¥5,752,788

53,24651,4855,543,540

5,697,007

4,273

4,295

Due to agencies

2,431

1,556

Due to reinsurers

600

479

1,857,302

1,848,983

Call money and bills sold

10,0006,000

Borrowed money

2,000

10,000Foreign exchanges

87

115

Bonds payable

20,00020,000

Other liabilities

106,365

98,842

Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders'dividends

Deposits

Reserve for employees'bonuses

3,085

1,471

Reserve for employees'retirement benefits

24,216

24,911

Reserve for directors'retirement benefits

411

190

32,344

34,236

Special reserves

32,344

34,236

Deferred tax liabilities

Reserve for price fluctuations

275－

Deferred tax liabilities on land revaluation

536

536

7,660,719

7,800,111

Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

135,160

133,932

Total Liabilities
Net Assets－(0)350,337

349,110

Net unrealized gains on other securities, net of taxes

88,32964,809Net deferred losses on hedging instruments, net of taxes(3,047)(2,512)

Treasury stock
Total shareholders'equity

Land revaluation, net of taxes
Total accumulated other comprehensive income
Minority interests
Total Net Assets
Total Liabilities and Net Assets

6(1,513)(1,513)

83,76760,783

1,339

1,333

435,444411,226¥8,096,164¥8,211,338

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, 2012

For the three months ended
June 30, 2013

Ordinary Revenues¥277,239¥312,809

Ordinary Revenues from the Life Insurance Business

247,163

280,351

217,825

221,133

Income from insurance premiums
Investment income

27,77555,757(Interest income and dividends)

25,65728,803(Income from monetary trusts, net)

1,312

1,322

(Gains on sale of securities)

792

1(Gains on derivatives, net)－

11

(Gains on separate accounts, net)－

25,608

1,562

3,460

21,751

23,091

21,48922,803

21,481

22,741(Interest and dividends on deposits of premiums)

88(Reversal of reserve for outstanding claims)－

52

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income(Net premiums written)

231

283

(Interest income and dividends)

226

292

(Gains on sale of securities)

13－(Transfer to interest and dividends on deposits of premiums)

(8)

(8)

Investment income

Other ordinary income

30

4

8,324

9,367

6,255

6,589

(Interest income on loans)

3,381

3,514

(Interest income and dividends on securities)

Ordinary Revenues from the Banking Business
Interest income

2,855

3,054

Fees and commissions

1,385

1,201

Other operating income

645

1,537

434

778

37

39

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

7

(Millions of yen)
For the three months ended
June 30, 2012

For the three months ended
June 30, 2013

Ordinary Expenses¥261,815¥295,784

Ordinary Expenses from the Life Insurance Business

233,736

267,405

69,923

81,778(Insurance claims)

17,284

18,767(Annuity payments)

2,226

2,371

(Insurance benefits)

8,669

10,076(Surrender payments)

40,66849,184651

929

107,273

150,394

107,270

150,3913

3

Investment expenses

26,116

1,872(Interest expenses)

129(Losses on sale of securities)

98－(Devaluation losses on securities)

107－(Losses on separate accounts, net)

23,643－Operating expenses

26,141

27,946

Other ordinary expenses

4,281

5,414

20,86921,585

Underwriting expenses

16,027

16,623(Net losses paid)

11,461

11,745(Loss adjustment expenses)

1,395

1,490

(Net commission and brokerage fees)

296

311

(Provision for reserve for outstanding losses)

372

－

2,501

3,075

0

1

4,839

4,958

Insurance claims and other payments(Other payments)
Provision for policy reserves and others
Provision for policy reserves
Interest portion of reserve for policyholders'dividends

Ordinary Expenses from the Non-life Insurance Business(Provision for underwriting reserves)
Investment expenses
Operating, general and administrative expenses
Other ordinary expenses

1

1(Continued)

8

(Millions of yen)
For the three months ended
June 30, 2012
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions
Other operating expenses

For the three months ended
June 30, 2013

¥7,209¥6,793

2,196

1,554

1,741

1,258

353

406

321

623

4,241

4,180

96

28

Ordinary Profit

15,424

17,025Extraordinary Losses

General and administrative expenses
Other ordinary expenses

1,674

1,906

Losses on disposal of fixed assets

514

Impairment losses

76

－

1,592

1,891

1,592

1,891

(6)

138

Income Before Income Taxes

13,756

14,981

Income Taxes

4,090

5,339

- Current

4,891

2,707

- Deferred

(800)

2,631

9,665

9,641

Provision for special reserves
Provision for reserve for price fluctuations
Provision (Reversal) for Reserve for Policyholders'Dividends

Income Before Minority Interests
Minority interests in income (losses)
Net Income

9

52

(6)

¥9,613¥9,647

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, 2012

For the three months
ended June 30, 2013

¥9,665¥9,641

8,362(23,519)

(502)

535

189

－

0

0

8,049

(22,984)¥17,714¥(13,343)

Comprehensive income attributable to parent company

17,662(13,337)

Comprehensive income attributable to minority interests

52

(6)

Income Before Minority Interests
Other comprehensive income
Net unrealized gains (losses) on other securities, net of taxes
Net deferred gains (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
Comprehensive income(Details)

103．Segment Information
For the three months ended June 30, 2012
(1) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥247,163
507
247,671\13,770¥21,751－
21,751\725¥8,324
47
8,371
\886

Total
¥277,239
554
277,794\15,382(2) Reconciliations of the totals of reportable segments' profit to quarterly consolidated statement of income
Millions of yen¥15,3821
40

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income¥15,424(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None
For the three months ended June 30, 2013
(1) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥280,351
594
280,945\13,370¥23,091
0
23,091\1,342¥9,36749
9,416\2,252

Total¥312,809
644
313,454\16,965(2) Reconciliations of the totals of reportable segments' profit to quarterly consolidated statement of income
Millions of yen¥16,965
1
57

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income¥17,025(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None

4．Subsequent Events
There were no applicable subsequent events.

11

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ insignificant respects from the financial information reported by Sony Corporation, the SFH’s parent company, which
prepares its financial statements in accordance with U.S. GAAP.
* SFH’s scope of consolidation includes Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony AssuranceInc., Sony Bank 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. Sony Bank Securities Inc. and Sony
Life Insurance (Philippines) Corporation were included in the scope of consolidation for the three months ended June30, 2012. (April 1, 2012 to June 30, 2012).
On August 1, 2013, Sony Corporation announced its consolidated financial results for the first quarter ended June 30,
2013 (April 1, 2013 to June 30, 2013). Sony Financial Group companies constitute Sony Group’s Financial Services
segment for the three months ended June 30, 2013. However, the scope of Sony Group’s Financial Services segment
differs from the scope of SFH’s consolidation for the period ended on or before March 31, 2013.

This Consolidated Financial Summary contains statements concerning the current plans, expectations,strategies and beliefs of the Sony Financial Group. Any statements contained herein that pertain to future
operating performance and 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, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, are based on
judgments made by the management of the Sony Financial Group, based on information that is currently
available to it. As such, these forward-looking statements are subject to various risks and uncertainties, andactual 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 Sony Financial Group disclaims any obligation to revise forward-looking statements in light of new
information, future events or other findings. The information contained in this Consolidated Financial
Summary does not constitute 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 inconnection with any contract or commitment whatsoever.

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/web/index_en.html

12

IV. Attachment
Content of Presentation Material

Consolidated Financial Results for the Three Months Ended June 30, 2013 andSony Life’s Market Consistent Embedded Value as of June 30, 2013
・Consolidated Operating Results for the Three Months Ended June 30, 2013・・・・・・・ 3
・Consolidated Financial Forecast for the Year Ending March 31, 2014・・・・・・・・・・ 28
・Revision of Dividend Forecast for the Year Ending March 31, 2014・・・・・・・・・・ 30
・Sony Life’s MCEV and Risk Amount Based on Economic Value as of June 30, 2013・・・ 32
・Appendix ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 35

13

Presentation Material

Consolidated Financial Results
for the Three Months Ended June 30, 2013
andSony Life’sLife sMarket Consistent Embedded Valueas off JuneJ3030, 2013
Sony Financial Holdings Inc.
August 12, 2013
Sony Financial Holdings Inc. All Rights Reserved

Content■ Consolidated Operating Results for the Three Months Ended June 30, 2013

P.3

■ Consolidated Financial Forecast for the Year Ending
g March 31,, 2014P.28

 Revision of Dividend Forecast for the Year Ending March31, 2014

P.30

■ Sony Life’sLife s MCEV and Risk Amount Based on Economic Value as of June 30
30, 2013

P 32
P.32

■ Appendix

P.35

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFi
Financiali l Group.
G
Any
A statementst tt containedt i d herein
h i thatth t pertaint i tot futuref t
operatingti performance
f
and
d th
thatt are nott hihistorict i factsf t
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, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, are based on judgments made by
the management of the Sony financial Group, based on information that is currently available to it. As such, these forwardlooking statements are subject to various risks and uncertainties, and actual business results may vary substantially from theforecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue
reliance on forward-looking statements. The Sony Finacial 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 not constitute orform part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, norshall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.
Sony Financial Holdings Inc. All Rights Reserved2Consolidated Operating Results for
the Three Months Ended June 30, 2013

Sony Financial Holdings Inc. All Rights Reserved

3

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2013 (1)(Billions of yen)

Ordinary revenues+12.8%

Ordinary profit

312.8

FY13.1Q

247.6

280.9

+33.2

+13.4%

ChangeLifeiinsurancebusiness

Ordinary revenues
Ordinary profit

13.7

13.3

(0.4)

(2.9%)

Non-life
insurancebusiness

Ordinary revenues

21.7

23.0

+1.3

+6.2%

Ordinary profit

0.7

1.3

+0.6

+84.9%

Ordinary revenues

8.3

9.4

+1.0

+12.5%

Ordinary profit

0.8

2.2

+1.3

+154.1%

(0 5)
(0.5)

(0 6)
(0.6)

(0 0)
(0.0)

－

0.0

0.0

+0.0

+44.2%

277.2

312.8

+35.5

+12.8%

O
Ordinary
profit
f

15 4
15.4

17 0
17.0

+1.6
16

+10.4%
10 4%

Net income

9.6

9.6

+0.0

+0.4%

13.3.3113.6.30

Change from 13.3.31

Total assets

8,096.1

8,211.3+115.1+1.4%

Net assets

435.4

411.2

(24.2)(5.6%)

277.2
Bankingbusiness

Intersegment
adjustments*+10.4%

FY12.1Q

Ordinary revenues
Ordinary profit
Ordinary revenues

17.0
C
Consolidated
lid t d15.4

(Billions of yen)(Billions of yen)

Consolidated*Ordinary profit in “Intersegment adjustments” is mainly from SFH.
*Comprehensive income: FY12.1Q: ¥17.7 billion, FY13.1Q: ¥(13.3) billion
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

4Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2013 (2) Life Insurance Business: Ordinary revenues increased year on year. This is because income frominsurance premiums rose associated with steady growth in policy amount in force, despite a decrease inlump-sum payment insurance premiums, affected by the revision of Sony Life’s insurance premium rates
on some of its products in April 2013. An increase in investment income due to higher gains on separate
account, net resulting from the market recovery also contributed to the rise in ordinary revenues.
Ordinary profit remained at the same levels as during FY12.1Q. This is because the positive effects
stemming from a decrease in provision of policy reserves for minimum guarantees for variable life
insurance and a recovery from negative spread into positive at Sony Life were offset by the negative
impact from an increase in provision of policy reserves resulting from the revision of discount rate used
for calculating policy reserves.
 Non-life Insurance Business：Ordinary revenues increased year on year owing to an increase in net
premiums written primarily for its mainstay automobile insurance. Ordinary profit increased year on year
due mainly to a decline in the loss ratio led by a lower car accident ratio and the revision of premium
rates for automobile insurance, in addition to the increase in ordinary revenues.
 Banking Business：Ordinary revenues increased year on year due to a rise in interest income on loans
led by the growing balance of mortgage loans and higher gains on foreign exchange transactions
stemming
g from customers’ active foreign
g currency
y trading.
g Ordinaryyp
profit increased yyear on yyear due toan increase in profit stemming from improved investment performance, including valuation gains onderivatives, net held for hedging interest rate risk on mortgage loans and other assets.
 Consolidated ordinary revenues increased 12.8% year on year, to ¥312.8 billion, ownig to increases inordinaryy revenues from all businesses. Consolidated ordinaryy profitpincreased 10.4% yyear on yyear, to¥17.0 billion. By business segment, ordinary profit from the non-life insurance and banking businesses
increased, whereas ordinary profit from the life insurance business remained at the same levels.
Consolidated net income was up 0.4% year on year, to ¥9.6 billion. This is mainly because the banking
business recorded profit for FY12.1Q, due to the tax effect of recording deferred tax assets on thetransfer of all shares of Sony Bank Securities,
Securities a wholly owned subsidiary of Sony Bank
Bank.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

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

Ordinary profit(Billions of yen)
Ordinary revenues+13.5%

281.1

24 6
247.6

14.1

+0.1%

Ordinaryy revenues increased yyear on yyear. Ordinaryyp
profitremained at the same levels.
Income from insurance premiums rose slightly associated with asteady growth in policy amount in force, despite a decrease inlump-sum payment insurance premiums, affected by the revision ofSony Life’ insurance premium rates on some of its products in April
2013.
Investment income increased due mainly to higher gains on
separate account, net resulting from the market recovery.
Ordinary profit remained at the same levels. This is because thepositive effects stemming from a decrease in provision of policy
reserves for minimum guarantees for variable life insurance and arecovery from negative spread into positive at Sony Life were offset
by the negative impact from an increase in provision of policy
reserves resulting from the revision of discount rate used for
calculating policy reserves.

281.1

+33.5

+13.5%+1.6%

Change

217.9

221.3

+3.4

Investment income

27.8

55.8

+28.0

+100.7%

Interest income and dividends

25.7

28.9

+3.1

+12.4%

Income from monetary trusts, net

1.3

1.3

+0.0

+0.7%

Gains on sale of securities

0.7

0.0

(0.7)

(99.8%)

－

25 6
25.6

+25 6
+25.6

－

233.4

266.9

+33.5

+14.4%+17.0%

Ordinary expenses
Insurance claims and other payments

69.9

81.7

+11.8

Provision for policy reserves and others

107.2

150.3

+43.1

+40.2%

Investment expenses

26.1

1.9

(24.2)(92.5%)

23.6－(23.6)(100.0%)

26.1

28.0

+1.8

+7.1%

Ordinary profit

14.1

14.1

+0.0

+0.1%

Net income

8.2

8.0

(0.1)

(1.9%)

Losses on separate accounts, net(Billions of yen)

FY13.1Q

247.6

Income from insurance premiums

Gains on separate accounts,
accounts net

14.1

FY12.1Q

Operating expenses

13.3.3113.6.30

Securities

5,211.5

5,381.0+169.4

Policy reserves

5,472.9

5,623.3+150.3+2.7%

Total net assets

342.3

316.4

(25.8)(7.6%)(28.3%)(Billions of yen)

Net unrealized gains on other securities,
net of taxes
Total assets
Separate account assets

Change from 13.3.31
+3.3%

80.2

57.5

(22.7)

5,952.7

6,062.8+110.1

+1.8%
%

550.6

574.6

+23.9

+4.4%

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

Sony Financial Holdings Inc. All Rights Reserved

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

FY12.1Q

FY13.1Q<Reasons for changes>

Change1,066.5

1,033.3(3.1%)

Lapse and surrender amount

497 5
497.5

456 4
456.4

(8 3%)(8.3%)

Lapse and surrender rate

1.38%

1.21%

(0.17pt)

Policy amount in force

36,432.0

38,160.2+4.7%

Annualized premiums from new policies

17.4

16.8

(3.3%)Of which, third-sector products

4.4

3.9

(12.1%)

643.0

677.2

+5.3%

151.5

164.1

+8.3%

New policy amount

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

FY12.1Q

FY13.1Q

25.3

28.3

+11.8%

Core profit

14.7

15.3

+3.7%

Positive (Negative) spread

(0 5)
(0.5)

12
1.2

Non-consolidated solvency margin ratio

13.6.30

2,281.8%

2,255.3%

 Decreased due to the lowering lapse andsurrender rates mainly in term-life insurance.
 Decreased due to the revision of insurance
premium rates. In the third-sector insurancepproducts, sale of lump-sum payment whole life
nursing-care insurance decreased.

 Core profit increased. This is because the positiveeffects stemming from a decrease in provision ofpolicy reserves for minimum guarantees forvariable life insurance and a recovery fromnegative spread into positive at Sony Life wereoffset by the negative impact from an increase inprovision of policy reserves resulting from therevision of discount rate used for calculating policy
reserves.

ChangeGains from investment, net (General account)

13.3.31

 Decreased due to the revision of insurance
premium rates.

－
Changefrom 13.3.31

 Non-consolidated solvency margin ratio was down
due to a decrease in net unrealized gains on othersecurities net of taxes led by rising interest rates
securities,
rates,
but still stays at high levels.

(26.5pt)

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
year.
3. The plus amount in negative spread indicates positive spread.

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

Sony Financial Holdings Inc. All Rights Reserved

7Sony Life Operating Performance (1)Number and Amount of New Policies(Individual Life Insurance + Individual Annuities)
New policy amount

Number of new policies(Thousands of policies)(Trillions of yen)

150

1.05

152

[ Reference]
4Q(3M) Number and Amount of New Policies
New policy amount

Number of new policies(Thousands of policies)(6.1%)

142

1.06

1.03

+31 9%+31.9%(Trillions of yen)

137

137

0.96

0.97

(3.1%)

180

1.23+26.9%

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

Sony Financial Holdings Inc. All Rights Reserved8Sony Life Operating Performance (2)Annualized Premiums from New Policies[ Reference]
4Q(3M) Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)
A
Annualized
li d premiumsiffrom new policies
li i

Of which,hi h thi
third-sectordtAnnualized premiums fromf
new policies
Of which, third-sector(Billions of yen)(Billions of yen)

17.4

17.1

16.8
(3.3%)(12.1%)

4.2

4.4

3.9

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

Sony Financial Holdings Inc. All Rights Reserved

9Sony Life Operating Performance (3)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(Millions of policies)(Trillions of yen)
+6.2%
50

5 76
5.76

700

+1.3%
1.3%
6

643 0
643.0

+5 3%
+5.3%

36.4 +4.7%

677.2

669.9
+1.1%

600

40

Of which, third-sector(Billions of yen)

6.11

6.04

Annualized premiums from insurance in force

38.1

37.7

5
500

+1.0%
4

30

400

3

300

2

200

20

+8.3%
10
1

0

0

12.6.30

13.3.3113.6.30

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

100

151.5

158.6

12.6.30

13.3.31

+3 5%
+3.5%

164.1

0

13.6.30

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

Sony Financial Holdings Inc. All Rights Reserved10Sony Life Operating Performance (4)Lapse and Surrender Rate*(Individual Life Insurance + Individual Annuities)
Lapse and surrender rate
(Annual)

Lapse and surrender rate
(1Q)

(%)

5.93

5.31

((FY11))(FY12)

1.53

1.38(0.17pt)

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

Sony Financial Holdings Inc. All Rights Reserved

11Sony Life Operating Performance (5)Income from Insurance Premiums(Billions of yen)(Billions of yen)

221 3
221.3

217 9
217.9
194.6

Interest Income and Dividends

28.9
25.7

+1.6%

23.2

+12.4%

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

Sony Financial Holdings Inc. All Rights Reserved

12Sony Life Operating Performance (6)Core Profit(Billions of yen)

19.2 *

Ordinary Profit(Billions of yen)

*Included ¥3.3 billion of reversal ofreserve for outstanding claims related
to the Great East Japan Earthquake.

17.9
15.3

14 7
14.7

14 1
14.1

14.1
+0.1%

+3.7%

(Reference) Impact on core profit(Billions of yen)

(Reference) Main differences from Core Profit(Billions of yen)
FY11.1Q

FY12.1Q

Capital gains (losses)

(0.3)

0.4

0.0

(5.5)

Provision of contingency reserve

(0.8)

(0.9)

(1.0)

(0.9)

*The plus amount in negative spread indicates positive spread.
“Provision of policy reserves for minimum guarantees for variable life insurance in thegeneral account assets” and “Provision of contingency reserve” are described as negative
amount.

FY11.1Q

FY12.1Q

FY13.1Q

Positive (Negative) spread

(1.3)

(0.5)

1.2

Effects by the revision of policy reserve discount rate

0.0

0.0

Provision of policy reserves for minimum guarantees forvariable life insurance in the general account assets

(0.8)

(4.0)

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

FY13.1Q

Sony Financial Holdings Inc. All Rights Reserved

13Sony Life Operating Performance (7)Number of Lifeplanner Sales Employees(Number)
+22

(6)

4,127
[109]

0

Note: Figures in [ ] show the numbers of Lifeplanner sales employees (rehired on a fixed-term contract basis
after retirement) included in the overall numbers, those who have reached retirement age but who continue towork as Lifeplanner sales employees that meet certain sales conditions and other requirement
requirement.
From FY13.1Q, the number of contracted Lifeplanner sales employees is added to each figure in [ ].
* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

Sony Financial Holdings Inc. All Rights Reserved

14Sony Life Operating Performance (8)Breakdown of General Account Assets(Billions of yen)

13.3.31<Asset management review>

13.6.30

Amount%Amount

%4,561.0

84.4%

4,691.9

85.5%

On the asset side, we lengthened the duration of
securities held to match the liability characteristics of
insurance policies with long-term maturities with theaim of reducing interest rate risk.

Japanese stocks

31.1

0.6%

34.5

0.6%

Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY13

Foreign securities

62.0

1.1%

64.5

1.2%

Foreign stocks

25.4

0.5%

26.0

0.5%

Monetary trusts

306.1

5.7%

295.5

5.4%

Policy loans

145 0
145.0

2 7%
2.7%

146 6
146.6

2 7%
2.7%

Real estate

70.3

1.3%

67.8

1.2%

Japanese governmentand corporate bonds<Bond duration>

Cash and call loans

103.3

1.9%

37.8

0.7%

Others

97.7

1.8%

123.3

2.2%

5,402.1

100.0%

5,488.2

100.0%

Total

Mar. 31, 201219.2 years

Mar. 31, 201319.9 years

Jun. 30, 201319.5 years■Investment in the monetary trusts is mainly into Japanese
government and corporate bonds.
■The holding ratio on the real status, of Japanese government andcorporate bonds including those invested in monetary trusts in thegeneral account assets:
As of Jun. 30, 2013: 90.9%, (As of Mar. 31, 2013: 90.1%)

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

Sony Financial Holdings Inc. All Rights Reserved

15Sony Life Operating Performance (9)Non-consolidated solvency Margin Ratio(%)(26.5pt)

2,255.3

2,281.8
1,980.40Sony Financial Holdings Inc. All Rights Reserved

16

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

+6.2%

21 7
21.7

23.0

(Billions of yen)

FY12.1Q
21.7

23.0

+1.3

+6.2%

Underwriting income

21.4

22.8

+1.3

+6.1%

Investment income

02
0.2

02
0.2

+0 0
+0.0

+22 4%+22.4%

21.0

21.7

+0.7

+3.4%

Underwriting expenses

16.1

16.7

+0.5

+3.7%

Investment expenses

0.0

0.0

+0.0

-

Operating, general andadministrative expenses

4.8

5.0

+0.1

+2.5%

Ordinary profit

0.7

1.3

+0.6

+85.0%Net income

0.4

0.8

+0.4

+93.6%

Ordinary revenues

1.3
85.0%

Ordinary expenses

0.7(Billions of yen)Ordinary revenues and ordinary profit increased
year on year.
Ordinary revenues increased year on year, due to aniincrease
iin nett premiumsiwrittenitt ffor itits mainstay
i t
automobile insurance.
Ordinary profit increased year on year due to a decline
in the loss ratio led by a lower car accident ratio and therevision of premium rates for automobile insurance, in
addition to the increase in ordinary revenues.

ChangeFY13.1Q(Billions of yen)

13.3.31
70.6

Underwriting reserves

13.6.30

Change from13 3 3113.3.31

73.6

+3.0

+4.4%

Total net assets

19.9

21.1

+1.2

+6.2%

Total assets

127.4

130.8

+3.4

+2.7%

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

Sony Financial Holdings Inc. All Rights Reserved

17

Overview of Performance:
Sony Assurance(Billions of yen)

FY12.1Q

ChangeFY13.1Q<Reasons for changes>

Direct premiums written

21.2

22.4

+5.7%

Net premiums written

21.4

22.7

+5.9%

N t llosses paid
Net
id

11 4
11.4

11 7
11.7

+2 5%
+2.5%

Underwriting profit

0.4

1.0

+119.7%Net loss ratio

59.9%

58.2%

(1.7pt)Net expense ratio

24.5%

23.8%

(0.7pt)Combined ratio

84.4%

82.0%

(2.4pt) Increased mainly in its mainstay automobile
insurance.

 Declined due to a lower car accident ratio andthe revision of premium rates for automobile
insurance.

 Declined due to a proper control of
insurance acquisition cost and a rise inautomobile insurance premiums.

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written.
written
Net expense ratio = Expenses related to underwriting / Net premiums written

Number of policies in force
Non-consolidated
Solvency margin ratio

13.3.3113.6.30

Change from 13.3.31

1.55 million

1.56 million+0.01 million

504.2%

535.5%+0.8%+31.3pt

Note: The number of policies in force is the total of automobile insurance and medical and cancer insurance,
which accounts for 99% of net premiums written.
Line item amounts are truncated below ¥ 100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved18Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written

Net Premiums Written

FY12.1Q

FY12.1Q

ChangeFY13.1Q

Fire

63

55

(13.2%)

Marine－－－P
Personall accident*
id t*

1 931
1,931

2 044
2,044

+5 9%
+5.9%

Voluntary automobile

19,21920,321

+5.7%

－

－

－

21,21422,420+5.7%

Compulsory
automobile liability
Total

ChangeFY13.1Q(Millions of yen)

(Milli(Millions
off yen))
Fire

69

74

+8.5%

Marine

42

44

+3.1%

Personal accident*
accident

2 001
2,001

2 124
2,124

+6 1%
+6.1%

Voluntary automobile

19,15020,257

+5.8%

217

241

+10.8%

21,481

22,741+5.9%

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

Net losses paid
FY12.1Q

ChangeFY13.1Q(Millions of yen)
Fire

0

0

(63.1%)

Marine12232(73.6%)

Personal accident*

467

463

(0.9%)

10,631

10,994

+3.4%

239

255

+6.6%

11,461

11,745+2.5%

Voluntary automobile
Compulsory
automobile liability
Total

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

Sony Financial Holdings Inc. All Rights Reserved

19Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force
Voluntaryy automobile insurance

Ordinary Profit

Personal accident insurance(Millions of policies)

Number of policies in force

Others(Billions of yen)(Billions of yen)

1.51

+3.3%

1.56

1 41
1.41

13
1.3
+5.9%

0.2

20.2
1.8

0.3

21.4
20
2.0

22.7 0.3+85.0%

2.1

0.7
18.1

19.1

0.7

20.2

Th numberTheb off policies
li i iin fforce iis theh totall off automobile
bil iinsurance andd medical
di land cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

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

Sony Financial Holdings Inc. All Rights Reserved20Sony Assurance Operating Performance (2)Earned/Incurred Loss Ratio +Net Expense Ratio
Earned/Incurred loss ratio
(%)

98.1

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

Net expensepratio

Net expense ratio

(%)

98.9
89.9

93.4

89.0

89.0

89.2
81.4

(4.4pt)

84 4
84.4

82.0
(2.4pt)(1.7pt)(3.7pt)(0.7pt)(0.7pt)Notes:
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for outstanding losses+ Loss adjustment expenses) / Earned premiums

Notes:Net loss ratio = (Net losses paid + Loss adjustment expenses ) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]Sony Financial Holdings Inc. All Rights Reserved

21Sony Assurance Operating Performance (3)Non-consolidated solvency Margin Ratio(%)

557.8%

535.5%

504.2%+31.3pt

Sony Financial Holdings Inc. All Rights Reserved

22Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)
Consolidated ordinary revenues
Consolidated ordinary profit<Consolidated>
FY12.1Q

FY13.1Q

Consolidated ordinary revenues(Billions of yen)

8.3

9.4

+1.0

+12.5%

Consolidated ordinary profit

1.0

2.2

+1.2

+122.6%

Consolidated net income

1.4

1.4

(0.0)

(1.4%)

9.4

8.3+12.5%
12.5%

22
2.2

Change<Non-consolidated>
FY12.1Q

FY13.1Q

Ordinary revenues(Billions of yen)

75
7.5

87
8.7

+1 2
+1.2

+17 1%+17.1%

Gross operating profit

4.4

5.9

+1.4

+33.4%+23.5%+122.6%1.0

Net interest income

4.0

5.0

+0.9

Net fees and commissions

0.0

(0.0)

(0.0)

―

Net other operating income

0.3

0.9

+0.5

+181.3%General and administrative
expenses

3.5

3.6

+0.1

+3.4%

Net operating profit

0.9

2.2

+1.3

+148.9%O di
Ordinary
profit
fit

08
0.8

22
2.2

+1.4
14

+162.2%
162 2%Net income (loss)

(1.2)

1.4

+2.6

―

13 3 3113.3.31

13 6 30
13.6.30

67.8

68.6

+0.8

+1.2%

6.5

5.3

(1.1)

(17.5%)

2 005 02,005.0

2 000 02,000.0

(5 0)
(5.0)

(0 3%)(0.3%)(Billions of yen)<Consolidated>
Consolidated ordinary revenues and ordinary profit increased year
on year due to a rise in interest income on loans led by the growing
balance of mortgage loans and higher gains on foreign exchangetransactions stemming from customers’ active foreign currency
trading. On the other hand, consolidated net income remained at
the same levels as FY12.1Q in which a profit was recorded dueto the tax effect of recording deferred tax assets on the transfer ofall shares of Sony Bank Securities.
<Non-consolidated>Both gross operating profit and net operating profit increased
year on year.
-Net interest income increased owing to a rise in interest income onloans led by a growing balance of mortgage loans, and a decreasei iinterest expenses.
in-Net other operating income increased due to an increase in profit
stemming from improved investment performance , including
valuation gains on derivatives, net held for hedging interest raterisk on mortgage loans and other assets, in addition to higher gains
on foreign exchange transactions stemming from customers’ active
foreign currency trading
trading.
Net income turned into a profit of ¥1.4 billion due to recording
valuation losses on the shares of Sony Bank Securities in FY12.1Q.

Change(Billi(Billions
off yen))Total net assets
Net unrealized gains onother securities, net of taxes
T t l assets
Total
t

Ch
Changeffrom 1313.3.313 31Line item amounts are truncated below ¥100 million except for net fees and commissions;percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

23

Overview of Performance:
Sony Bank (Non-consolidated) (1)12.6.30

13.3.3113.6.30

Change from
13.3.31

1,868.0

1,974.3

1,965.6(8.7)(0.4%)

Deposits

1,767.2

1,857.4

1,849.0(8.3)(0.4%)

Yen

1,401.8

1,467.2

1,466.9(0.2)(0.0%)

365.4

390.2

382.1

(8.0)

(2.1%)

100.8

116.9

116.5

(0.3)

(0.3%)

866.4

970.2

989.1

+18.9

+2.0%

Mortgage loans

774.4

860.3

878.1

+17.8

+2.1%

Others

92.0

109.8

111.0

+1.1

+1.0%

11.29%

11.98%

11.89%(0.09pt)

8 85%
8.85%

9*1104%9.04%+0 19pt+0.19pt(Billions of yen)
Customer assets

Foreign currency
Investment trusts
Loans outstanding

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

9 36%
9.36%

(*1)

<Reasons for changes>
Yen deposit balance remained at thesame levels because interest rates wereat unattractively low levels, despite apositive effect on customer assets of
converting from foreign currencies to yen
backed by yen depreciation.
Foreign currency deposit balance
decreased due to a negative impact fromconverting more foreign currencies into
yen, despite a positive impact from
customers’ active foreign currency trading
led by yen depreciation.

Loan balance increased due an increase in
the balance of mortgage loans.

*1 Loans in others include corporate loans of ¥104.7billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P27.

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

Sony Financial Holdings Inc. All Rights Reserved

24Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis<Reference> Interest Spread
FY12.1Q

FY13.1Q

4.4

5.9

+1.4

+33.4%Net interest income *1 ①

4.2

4.5

+0.3

9.2%

Net fees andcommissions *2 ②

0.1

0.4

+0.2

+119.3%

Net other operating
income *3

0.0

0.8

+0.8

－

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

4.3

5.0

+0.6

+14.1%

Operating expenses andother expenses ③

3.5

3.5

+0.0

+1.6%

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

0.8

1.4

+0.5

+63.8%(Billions of yen)
Gross operating profit

Change(Managerial Accounting Basis)
Yield on investment

Yield on financing

Interest spread(%)+0.04pt

0.94●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.
●Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactionstransactions, and stands for Sony Bank’s
Bank s basic profits.
profits

Note: Interest spread=(Yield on investment)-(Yield on financing)Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

25

Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen depositspLoansMortgageg g loans

Foreign currency deposits

Others(Billions of yen)(Billions of yen)

1,762.2

1,849.0

1,857.4
(8.3)

989.1

970.2
+18.9

835 5
835.5

111.0

*Corporate loansof ¥104.7 billion.

382.1

878.1

1 466 91,466.9

Line item amounts are truncated below ¥100 million.

Sony Financial Holdings Inc. All Rights Reserved

26

Operating Performance:
Sony Bank (Non-consolidated) (2)Balance of Securities by Credit Ratings
AAA
BBB

AA
Others

Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)
Capital adequacy ratio

A

Tier1 ratio(%)(Billions of yen)

11.58
912.9

11 98
11.98

(0 09 pt)
(0.09
t)

11.89

908.8
802.7
(106.1)

9.63

8.85

9 04
9.04
+0.19 pt*C
*Calculated
based on the standard FSA
S NotificationfNo. 19 2006),) which establishes
standards based on Article 14-2 of the banking Act of Japan for determining the capital
adequacy of a bank in light of the assets held by the bank.

Amounts are truncated below ¥100 million.

Sony Financial Holdings Inc. All Rights Reserved

27

Consolidated Financial Forecast
for the Year Ending
g March 31,, 2014

Sony Financial Holdings Inc. All Rights Reserved28

Consolidated Financial Forecast
for the Year Ending March 31, 2014
■SFH’sS
forecastf
off consolidated financialfresults ffor FY2013
2013 is unchanged ffrom the fforecast
announced on May 9, 2013.
(Billions of yen)

FY12

FY13

(Actual)(Forecast)

ChangeConsolidated ordinary revenues

1,259.0

1,222.0(2.9%)

Life insurance business

1,142.3

1,099.9

Non-life insurance business

84.7

88.5

(3.7%)+4.5%

Banking business

34.3

34.0

(0.9%)

Consolidated ordinary profit

79.2

69.0

(12.9%)

Life insurance business

72.7

61.4

(15.5%)

Non-life insurance business

2.3

3.0

+30.4%

Banking business

39
3.9

43
4.3

+10 3%+10.3%

Consolidated net income

45.0

37.0

(17.9%)■Life insurance business
Ordinary revenues are expected to decrease year on year, because we do not expect such an increase in investment income on separate
account due to the market recovery as recorded in the previous fiscal year, although we expect higher income from insurance premiums.
Ordinary profit is expected to decrease, since we do not expect such a reversal of policy reserves related to minimum
guarantees for variable life insurance policies as recorded in the previous fiscal year. We also expect provision for policy reserves toincrease reflecting a revision of discount rate used for calculating policy reserves.
■Non-life insurance business
Ordinary revenues are expected to increase year on year, owing to an increase in net premiums written, primarily for automobile insurance.
Ordinary profit is expected to increase because we expect higher revenues and lower loss ratio.
■Banking Business
Ordinary revenues are expected to decrease year on year, owing mainly to a decrease in revenues in SmartLink Networks, despite aniincrease
iin iinteresttt iincome on lloans lleddb
by a growing
i bbalanceloff mortgagetlloans.
Ordinary profit is expected to rise, mainly because we anticipate a steady increase in gross operating profit, driven by business expansion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

Sony Financial Holdings Inc. All Rights Reserved

29

Revision of Dividend Forecast
for the Year Ending March 31, 2014

Sony Financial Holdings Inc. All Rights Reserved30Revision of Dividend Forecast
for the Year Ending March 31, 2014
We revise the year-end per-share dividend forecast for FY2013 from ¥25 to ¥30, following the dividend increase
for the prior fiscal year, after updating the recent business environment, business performance, and other factors.



Our mid-term target for the dividend payout ratio is 30% to 40% of consolidated net income. Going forward, we
will steadily raise dividend amount, taking into account management environment.
<Dividend Payout>

Dividend payout ratio (%)

35.3(Billions of yen) 26.4

26.5
20.9

21 2
21.2

25

24.1
Increased
Dividend(Forecast)

13.6

20
Increased
Di id dDividend

Annual dividend amount

15

Increased
Dividend

10

13.05

10.875
8.7

8.7

FY09

FY10

FY11

FY12

FY13(F)
( )

¥15

¥20

¥20

¥25

¥30
(Forecast)

6.525

6.525

6.525

FY07

FY08

Dividend per share ¥15

¥15

5
0

Note: We pay dividends once a year as a year-end dividend.

Sony Financial Holdings Inc. All Rights Reserved

31Sony Life
Life’ss MCEV and
Risk Amount Based on Economic Valueas of June 30,
30 2013

Sony Financial Holdings Inc. All Rights Reserved32Sony Life’s MCEV as of June 30, 2013
(Billions of yen)

13.3.31

Change from
13.3.3113.6.30

1,064.7

1,149.9+85.2

Adjusted net worth

770.8

572.5

(198.3)

Value of existing business

293.9

577.4

+283.5

MCEV

Notes:
1. Calculated MCEV for policies in force as of June 30, 2013 by using updated lapse and surrender rate and economic assumptions.
psimplifiedpmethod for a p
part of MCEV calculations as of June 30,, 2013.
2. Adopted

MCEV increased because an increase in value of existing business offset a significant decrease inadjusted net worth due mainly to a decrease in unrealized gains on held-to-maturity securities inline with higher interest rates in the ultra-long term.
New business value (new business margin) for 12 months ended March 31, 2013 was ¥41.6 billion(3.5%) while that for 3 months ended June 30, 2013 was ¥17.1 billion (6.5%). New business marginrose due mainly to higher interest rates in the ultra
ultra-long
long term and the revision of Sony Life’sLife sinsurance premium rates on some of its products in April 2013.
(*) New business margin equals new business value divided by present value of premium income.

* Please keep
p in mind that the validity
y of these calculations has not been verified byy outside specialists.
pSony Financial Holdings Inc. All Rights Reserved

33Sony Life’s Risk Amount Based on Economic Valueas of June 30, 2013
(Billions of yen)

13.3.3113.6.30

Insurance risk

605.6

597.2

Market-related risk

289.9

234.5

Of which, interest rate risk*

234.2

175.4

Operational
p
risk

26.0

25.0

Counter party risk

2.3

1.7

Variance effect(262.5)(241.3)Th riskThe
i k amount b
based
d on economic
i value
l

661 3
661.3

617 0
617.0

(Billions of yen)

MCEV

13.3.31
1 064 7
1,064.7

13.6.30
1 149 91,149.9(*) Interest amount excluding the variance effect within market-related risk.

 Maintained capital adequacy by controlling market-related risk.
Notes
1. The risk amount based on economic value refers to the total amount of Sony Life’s risks, comprehensively examined and including insurance risk andmarket-related risk.
2. The solvency risk capital on an economic value basis is calibrated at VaR (99.5) over one year and based on the internal model, which is a similar but
modified model based on the EU Solvency II (QIS5) standard method.

* Please keep in mind that the validity of these calculations has not been verified by outside specialists.

Sony Financial Holdings Inc. All Rights Reserved34

Appendix

Sony Financial Holdings Inc. All Rights Reserved

35

Recent Topics 1
AEGON Sony Life Insurance’s Sales Update
Launch of sales: December 1, 2009
Common stock: ¥20 billion (including capital surplus of ¥10 billion)
Equity ownership: Sony Life insurance Co., Ltd. 50%, AEGON international B.V. 50%
Marketing products: Individual Variable Annuities (3 types, 4 products*)
Sales Channels: Lifeplanner sales employees and partner Banks (12*)(12 ) *AsAs of Aug.
Aug 12,12 2013<Financial Highlights for FY13.1Q> Number of new policies: 6,812 (+5,737 from FY12.1Q)
New policy amount: ¥39.6 billion (+¥32.1 billion from FY12.1Q)<As of June 30, 2013> Number of policies in force: 16,762 (+12,036 from June 30, 2012)
Policy amount in force: ¥113.3billion (+76.5 billion from June 30, 2012)
Line item amounts are truncated below ¥100 million.

Sony Bank’s Mortgage Loans through Sony Life
■ Sony Life accounts for 25% of the balance of mortgage
loans as of June 30, 2013
Sony Life accounts for 22% of the amount of new mortgage loans for FY13.1Q*Sonyy Life started handlingg bankingg agencygy business in January
y 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
■ Sony Life accounts for approx. 5% of new automobile policies for FY13.1Q* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

Sony Financial Holdings Inc. All Rights Reserved36

Recent Topics 2<Highlight for FY2013.1Q>
2013-7-29

Sony Bank started accepting an account application form for Nippon Individual Savings Account (tax-free),called NISA.

2013-6-25

Sony Bank opened its official account on social media sites.

2013-5-02

Sony Life commenced sale of a new product: “ U.S. Dollar Denominated Insurance.”

2013-5-01

Sony Bank set service charge free on inward foreign currency remittances.

2013-4-02

Sony Life revised insurance premium rates on some of its products in line with the reduction in discount rateused for calculating policy reserves.

2013-4-01

Sony Assurance revised its automobile insurance policy details. (including an increased discount of ¥8,000
for new customers who conclude contracts on line, introduction of new non-fleet driver rating system and therevision on automobile insurance premium rates.)Sony Financial Holdings Inc. All Rights Reserved

37Sony 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
trading purpose securities)

Valuation gains (losses) on trading-purpose securities(Billions of yen)(Billions of yen)

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

Sony Financial Holdings Inc. All Rights Reserved38Sony Life’s Interest Income and Dividends (Details)(Millions of yen)

FY12.1Q

ChangeFY13.1Q
00(65.3%)

20,82823,649+13.5%

6848(30.1%)

Foreign securities

697

1,253

+79.6%

Other securities

78

11(85.5%)

Loans

1 342
1,342

1 394
1,394

+3 9%
+3.9%

Real estate

2,710

2,560

(5.5%)

810+18.2%

25,73528,926+12.4%Cash and deposits
Japanese governmentand corporate bonds
Japanese stocks

Others
Total

Line item amounts are truncated below ¥1 million

Sony Financial Holdings Inc. All Rights Reserved

39Sony Life’s Quarterly Trend on New Policies Amount
Quarterly trend on New Policies Amount(Billions of yen)

New policy amountLine item amounts are truncated below ¥100 million;

Sony Financial Holdings Inc. All Rights Reserved40Sony Life’s Quarterly Trend on
Annualized Premiums from New Policies
Quarterly trend on Annualized Premiums from New Policies

Annualized premiums from new policies

Of which, third-sector(Billions of yen)Line item amounts are truncated below ¥100 million;

Sony Financial Holdings Inc. All Rights Reserved

41

Method of Measuring Risk Amount
Based on Economic Value (1) Market-related Risk
Sony Life(Reference) EU Solvency II (QIS5)Interest rate risk
Foreign currencies’ interest rate up 1.33x–10.39x(differs each currency and each year)
Yen’s interest rate down 0.07x–0.67x
but no lower than 1%

Interest rate up 1.25x–1.70xInterest rate down 0.25x–0.73x
but no lower than 1%

Equity risk

Listed equities and REIT 45% decline
Unlisted equities 55%
Other securities 70%
Subsidiaries affiliated companies and strategic
Subsidiaries,
investment 100%

Global 30%
Others 40% (Note 2)

Real estate risk

Actual real estate 25%

Same as on the left

Credit risk

Credit risk = (market value) x (risk coefficient for each credit
rating) x adjusted duration
Note that adjusted durations have caps and floors, depending
on credit ratings.
(Example)
Rating A: Risk coefficient (1.4%), cap (23), floor (1)Same as on the left

Currency risk

30% downside fluctuation

25% downside fluctuation

Fluctuations in net asset
value based on economic
value in response to theshocks in the right columns.
The same applies below.

Notes
1. Principal items as of June 30, 2013.
Market-related risk qquantification follows the QIS5 approachpp
in p
principle.
p However,, Sonyy Life modified it to make it more suitable to Japanesepmarket byy adapting
p g the ppast and latest
data of the market which is different from the method prescribed in QIS5.
2. Standard risk coefficients are global: 39%/other: 49%. Symmetric adjustment (an adjustment of ±10% of the average value of the stock price index during a defined period in the past)is applied; as of the QIS5 trial introduction (December 31, 2009), these were 30%/40%.

Sony Financial Holdings Inc. All Rights Reserved

42Method of Measuring Risk Amount
Based on Economic Value (2) Insurance Risk
Sony Life(Reference) EU Solvency II (QIS5)

Mortality risk

Mortality rate increases by 15% for each year
elapsedSame as on the leftLongevity risk

Mortality rate decreases by 20% for each year
elapsedSame as on the left

Lapse risk

The largest amount of these*;・Lapse rate increases by 50% for each year
elapsed・Lapse rate decreases by 50% for each year
elapsed・30% of policies on which surrender value is inexcess of best estimate liability are immediately
surrendered

The largest amount of these;
・Increase by 50% in the assumed rates oflapsation for Life module, 20% for Healthmodule・Decrease by 50% in the assumed rates oflapsation for Life module, 20% for Healthmodule・30% of policies (70% for group annuities,etc ) on which surrender value is in excess of
etc.)
best estimate liability are immediately
surrendered

Expense risk

Operating expenses increase by 10% for eachyear elapsed
Rate of inflation rises by 1%

Disability risk

Rate of occurrence increases by 35% in theRate of occurrence increases by 35% in the first
first fiscal year, rising by 25% for each year
fiscal year, rising by 25% for each year thereafter
thereafter Recovery rate decreases by 20%
thereafter.
20%.

Same as on the left

* At Sony Life, lapse risk is calculated by computing and adding together the largest amount of three options for each insurance policy.

Sony Financial Holdings Inc. All Rights Reserved

43

Contact: CorporatepCommunications & Investor Relations DepartmentpSony Financial Holdings Inc.
TEL： +81-3-5785-1074

Sony Financial Holdings Inc. All Rights Reserved

44