Presentation Material

Consolidated Financial Results for theYear Ended March 31, 2012
andSony Life’s PreliminaryMarket Consistent Embedded Value
Sony Financial Holdings Inc.
May 18, 20121

Content■Consolidated Operating Results for the Year Ended March 31, 2012
P.3
■Consolidated Financial Forecast for the Year Ending March 31, 2013
P.27
■Dividend Policies
P.29■ Sony Life’s Preliminary MCEV as of March 31, 2012,
and Risk Amount Based on Economic Value

P.31■ Appendix

P.33

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 performance andthat are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” 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 toplace undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking
statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever.

2

Content2

Consolidated Operating Results for
the Year Ended March 31, 20123

3

Highlights of Consolidated Operating Performancefor the Year Ended March 31, 2012 (1)Ordinary revenues

Ordinary profit(Billions of yen)

1,002.2+7.6%(2.9%)

1,078.0

74.6

76.8

ChangeOrdinary revenues

900.3

967.5

+67.2

+7.5%

Ordinary profit

72.1

68.1

(3.9)

(5.5%)

Non-life
insurancebusiness

Ordinary revenues

74.1

80.0

+5.9

+8.0%

2.1

2.8

+0.7

+33.3%

29.5

32.5

+2.9

+10.1%

2.4

3.4

+1.0

+43.9%

(1.8)

(2.1)

(0.2)

－

0.1

0.1

(0.0)

(14.0%)

Ordinary profit
Ordinary revenues

Bankingbusiness

Ordinary profit

Intersegment

Ordinary revenues

adjustments*

Ordinary profit

1,002.2

1,078.0

+75.8

+7.6%

Ordinary profit

76.8

74.6

(2.2)

(2.9%)Net income

41.7

32.8

(8.9)

(21.3%)

Ordinary revenues

FY2011FY2011Lifeinsurancebusiness

Consolidated

FY2010FY2010*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

(Billions of yen)
11.3.3112.3.31

Change from 11.3.31

Total assets

6,597.1

7,241.4+644.2+9.8%

Net assets

294.8

347.8

+52.9

+17.9%(Billions of yen)

Consolidated(Note) Comprehensive income: FY2010: ¥31.9 billion, FY2011: ¥60.3 billion

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

4

During the year ended March 31, 2012, consolidated ordinary revenues
increased 7.6% year on year, to ¥1,078.0 billion. As for the breakdown bybusiness segment, ordinary revenues increased in the all businesses, thelife insurance, the non-life insurance, and the banking.
Consolidated ordinary profit decreased 2.9%, to ¥74.6 billion, reflecting adecrease in ordinary profit from the life insurance, whereas ordinary profit
from the non-life insurance business and the banking business increased
year on year.
Consolidated net income was down 21.3% year on year, to ¥32.8 billion
due to a decline in consolidated ordinary profit and an increase in income
taxes owing to a reversal of deferred tax assets associated with the
reduction in the corporate tax rate.

4

Highlights of Consolidated Operating Performancefor the Year Ended March 31, 2012 (2)<Comparison with the previous year>Life Insurance: Ordinary revenues increased, due mainly to higher income from insurance premiums associated withsteady increases in the policy amount in force, as well as an increase in investment income accompanied with market
recovery towards the end of the fiscal year. Ordinary profit decreased, due to lower gains on sale of securities,
reflecting the process of shifting bond holdings to ultralong-term bonds to reduce interest rate risk, whereas insurance
claims and other payments relating to the Great East Japan Earthquake were lower than our estimates as of the end of
the previous fiscal year.

Non-life Insurance: Ordinary revenues increased, due to an increase in net premiums written, as the number of
insurance policies in force grew primarily for our automobile insurance. Ordinary profit increased, due mainly to theincrease in ordinary revenues and a reversal of catastrophe reserve, although a rise in net losses paid for automobile
insurance resulted in the higher loss ratio.

Banking: Ordinary revenues increased, due to an increase in net fees and commissions resulting from Sony Bank’s
acquisition of SmartLink Network, Inc. on July 1, 2011 as its consolidated subsidiary. Ordinary profit rose due to a risein gross operating profit resulting from an increase in net interest income. The net interest income increased due mainly
to higher interest income on loans led by the growing balance of mortgage loans and a decrease in interest expenses
on yen deposits.

Consolidated ordinary revenues increased 7.6%, to ¥1,078.0 billion, however, consolidated ordinary profit
decreased 2.9%, to ¥74.6 billion. Consolidated net income decreased 21.3%, to ¥32.8 billion due to the decline inconsolidated ordinary profit and an increase in income taxes owing to a reversal of deferred tax assets associated withthe reduction in the corporate tax rate.

<Comparison with Our Original Financial Forecast> In February, 2012, SFH revised upward consolidated ordinary revenues and consolidated ordinary profit on its FY11
forecast from the original announcement in May 2011. The major reasons for the revision were the lower insurance
claims and other payments relating to the Great East Japan Earthquake than we had estimated at the end of March
2011, as well as gains on sale of securities during the third quarter.
The actual results of consolidated operating profit exceeded the revised forecast, due mainly to the market
recovery during the fourth quarter.

5

Here are highlights of consolidated operating performance.

5

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

Ordinary profit
Ordinary revenues

967.4
900.0

+7.5%

FY2010FY2011 (Billions of yen)

+67.3

Income from insurance premiums

770.3

816.1

+45.7

+5.9%

Investment income

119.5

133.9

+14.4

+12.1%

Interest income and dividends

87.5

97.9

+10.4

+11.9%

Income from monetary trusts, net

6.9

5.2

(1.7)

(24.4%)

Gains on sale of securities

24.9

7.5

(17.4)(69.8%)

－

23.1

+23.1

－

826.9

897.9

+71.0

+8.6%

Insurance claims and other payments

297.9

287.4

(10.5)(3.5%)

Provision for policy reserve and others

392.7

471.5

+78.8

+20.1%

Investment expenses

Ordinary profit decreased due to lower gains on sale of securities,
and lower insurance claims and other payments relating to theGreat East Japan Earthquake than we had estimated as of the endof the previous fiscal year.

+7.5%(25.6%)

19.3

14.3

(4.9)

Losses on sale of securities

1.8

2.6

+0.7

+39.7%

Losses on separate accounts, net

7.4

-

(7.4)

(100.0%)

99.3

105.4

+6.1

+6.2%

73.1

69.4

(3.7)

(5.1%)(8.7)(21.9%)

Operating expenses
Ordinary profit

Ordinary revenues increased but ordinary profit decreased
year on year.
Income from insurance premiums increased owing to steady growthin the policy amount in force.
 Investment income increased due mainly to higher interest income
and dividends, and an improved investment performance on
separate accounts, which offset the negative impact of lower gains
on sale of securities.

Change967.4

Ordinary expenses

69.4

FY2011

900.0

Gains on separate accounts, net

73.1 (5.1%)

FY2010Net income

40.2(Billions of yen)

11.3.3131.4
12.3.31

Change from 11.3.31

Securities

4,017.5

4,545.0+527.4+13.1%

Policy reserves

4,371.4

4,843.0+471.5+10.8%

Total net assets

215.3

264.8

+49.4

+23.0%

7.0

34.0

+27.0

+385.3%

4,723.3

5,222.8+499.5+10.6%

398.1

444.2

+46.1

+11.6%Net unrealized gains on other securities
Total assets
Separate account assets

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

6

Highlights of Sony Life’s operating performance (non-consolidated basis)are shown here.
Sony Life’s ordinary revenues increased 7.5% year on year, to ¥967.4
billion. Income from insurance premiums increased owing to steady
growth in the policy amount in force.
Income from insurance premiums grew 5.9% year on year, to ¥816.1
billion.
Investment income increased 12.1% year on year, to ¥133.9 billion, mainly
due to higher interest income and dividends, and an improved investment
performance on separate accounts, which offset the negative impact oflower gains on sale of securities.
Investment expenses decreased 25.6% year on year, to ¥14.3 billion due
mainly to an improved investment performance on separate accounts.
Ordinary profit decreased 5.1% year on year, to ¥69.4 billion due to lower
gains on sale of securities and lower insurance claims and other payments
relating to the Great East Japan Earthquake than we had estimated as ofthe end of the previous fiscal year.
Consequently, net income decreased 21.9% year on year, to ¥31.4 billion
due to a reversal of deferred tax assets associated with the reduction in
the corporate tax rate.

6

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

FY2010FY2011

4,199.0

4,203.3+0.1%

Lapse and surrender amount

2,143.6

2,056.2(4.1%)(0.48pt)

Lapse and surrender rate

6.41%

5.93%

Policy amount in force

34,748.5

36,077.0

+3.8%

71.2

70.8

(0.5%)

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

16.6

17.1

+2.5%

604.7

635.4

+5.1%

140.7
FY2010148.9
FY2011

107.6

96.4

56.2

71.6

+27.3%

Negative spread

6.3

1.5

(76.2%)

Solvency Margin Ratio

1,720.0%

1,980.4%

 Decreased due to the lowering lapse and surrender
rates in most products, mainly in family income
insurance, which is life insurance with disability benefit.
 Decreased due mainly to decreased sales of
educational endowment insurance and medical
insurance which offset increased sales of living benefit
insurance and term life insurance.

+5.8%

Core profit

12.3.31

 Remained flat, due mainly to increased sales of termlife insurance, which offset a decrease in family
income insurance, which is life insurance withdisability benefit.

 Decreased due to lower gains in sale of securities inline with the shift from investing in bonds with shortterms to maturity to those with ultralong-terms, thoughinterest income and dividends increased.

ChangeGains from investment, net (General account)

11.3.31(Reasons for changes)

ChangeNew policy amount(10.4%)

 Increased, mainly reflecting lower insurance claims
and other payments relating to the Great East Japan
Earthquake than we had estimated as of the end of theprevious fiscal year, and a decease in negative spread
as well as a decrease in provision of policy reserve forminimum guarantee for variable life insurance.

Changefrom
11.3.31+260.4pt

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.
*3 The solvency margin ratio has been calculated according to the new standard, which became effective as ofthe end of fiscal 2011 (March 31, 2012).

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

7

Here is an overview of Sony Life’s performance.

7

Sony Life Operating Performance (1)Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)

Number and Amount of New Policies(Individual Life Insurance + Individual Annuities)
New policy amount

Annualized premiums from new policies

Number of new policies

Of which, third-sector(Thousands of policies)

582

591

599

600

534
(1.3%)(Trillions of yen)

500

5.0

4.0

3.87

4.04

68.7

70

(0.5%)

60

400+0.1 %

50

3.0

300

2.0

200

1.0

100

40
30
+2.5%

20

0

0
FY2008FY2009

70.8

71.2

61.6

4.20

4.19

(Billions of yen)80

FY2010FY2011

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

10

13.4

16.2

16.6

17.1

FY2008FY2009FY2010FY20110Line item amounts are truncated below ¥100 million; percentage figures are rounded.

8(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities remained at the same level from a year earlier, amounting to¥4.2 trillion, due mainly to lower sales of family income insurance, which islife insurance with disability benefit, whereas sales of term life insurance
increased.
The number of new policies decreased 1.3% year on year, to 591
thousand policies.
(Right-hand graph)
Annualized premiums from new policies decreased 0.5%, to ¥70.8 billion,
due mainly to lower sales of educational endowment insurance andmedical insurance, whereas sales of living benefit insurance and term life
insurance increased.
Of which, third-sector insurance products increased 2.5% year on year, to¥17.1 billion, reflecting favorable sales of nursing-care and living benefit
insurance.

8

Sony Life Operating Performance (2)Number and Amount of Policies in Force(Individual Life Insurance + Individual Annuities)
Policy amount in force

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

Number of policies in force(Millions of policies)(Trillions of yen)
+6.2%

50

5.67

40

4.70
32.5

(Billions of yen)

635.4

6

5.34

600

5.01
5

33.4

36.0

34.7

Of which, third-sector

547.8

573.3

604.7
+5.1 %

500

4+3.8 %

30

400

3
300

20
2
10

0
2009.3.31

2010.3.31

2011.3.31

2012.3.31

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

200

1

100

0

0

126.6

133.0

140.7

2009.3.31

2010.3.31

2011.3.31

+5.8%

148.9

2012.3.31

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

9(Left-hand graph)
Policy amount in force for the total of individual life insurance and individual
annuities grew steadily, to ¥36.0 trillion as of March 31, 2012, up 3.8% fromMarch 31, 2011.
The number of policies in force increased 6.2% from March 31, 2011, to 5.67
million policies.
(Right-hand graph)
Annualized premiums from total policies as of March 31, 2012, were up 5.1%
from March 31, 2011 totaling ¥635.4 billion. Of this amount, the figure for thirdsector products was up 5.8% from March 31, 2011, to ¥148.9 billion.

9

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

Income from Insurance Premiums(Individual Life Insurance + Individual Annuities)(Billions of yen)

816.1
770.3

800

（％）

662.0
8

6.79

7.21

700.1

+5.9 %

600

6.41

5.93

6
(0.48pt)

400
4

200

2

0

0
FY2008FY2009FY2010FY2011*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.

FY2008FY2009FY2010FY2011

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

10(Left-hand graph)
The lapse and surrender rate for the year ended March 31, 2012
decreased 0.48 percentage point year on year, to 5.93%, due to thelowering lapse and surrender rates primarily for family income insurance,
which is life insurance with disability benefit.
(Right-hand graph)
Income from insurance premiums increased year on year, as described in
the previous pages.

10Sony Life Operating Performance (4)Core Profit

Ordinary Profit(Billions of yen)(Billions of yen)

80.0

80

71.6

80

73.1

69.4

64.5
(5.1%)

56.2

60

60
+27.3%

40

38.0

40

20

32.4

20

0

0
FY2008FY2009FY2010FY2011

FY2008FY2009FY2010FY2011

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

11(Left-hand graph)Core profit increased 27.3% to ¥71.6 billion year on year, reflecting lower
insurance payments for the Great East Japan Earthquake ofMarch 2011 than formerly estimated, and a decease in negative spread aswell as a decrease in provision of policy reserve for minimum guarantee
for variable life insurance(Right-hand graph)
Ordinary Profit decreased year on year, as described in the previous
pages.

11

Sony Life Operating Performance (5)Average Assumed Interest Rate,
Investment Yield for Core Profit andInvestment yield in General Account

Negative Spread(Billions of yen)

Average assumed interest rate

4.00%

30

Investment yield in general accountInvestment yield for core profit
25

21.3

3.00%
2.54%

20

2.68%
2.43%

2.59%
15

2.00%

11.5

2.35%

2.51%

2.31%

2.17%

2.26%

FY2009FY2010

2.17%

1.90%

10

6.3

(76.2 %)

1.00%

5

1.11%

1.5
0

FY2008FY2009FY2010FY2011

0.00%
FY2008FY2011

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

12

The negative spread declined due to the lowing average assumed interest rate,
led by accumulated new policies with low assumed interest rate, and the rising
investment yield for core profit reflecting the process of shifting bond holdings toultralong-term bonds to reduce interest rate risk.

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

4,036
4,000

4,045

4,017

3,891
+28

3,500

3,000
0
09.3.3110.3.3111.3.3112.3.31

Reference: Lifeplanner sales employees (rehired on a fixed-term contract basis after retirement)(Number)

09.3.3110.3.3111.3.3112.3.31

Lifeplanner*

30

39

49

71

* The table above indicates the number of Lifeplanner sales employees (rehired on a fixed-term contract basis after retirement); these are not included in the graph above.
* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

The number of Lifeplanner sales employees as of March 31, 2012, was
4,045, up 28 from March 31, 2011.
The growth in the number of new recruits was relatively flat for the first halfof this fiscal year, affected by the Great East Japan Earthquake. However,the number of new recruits recovered during the second half of this fiscal
year.
This year, SFH began disclosing separately its number of Lifeplanner sales
employees (rehired on a fixed-term contract basis after retirement), those
who have reached retirement age but who continue to work as Lifeplanner
sales employees that meet certain sales conditions and otherrequirements.

13

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

2011.3.31

2012.3.31%

3,499.980.9%

3,975.7

83.2%

Japanese stocks

64.0

1.5%

45.0

0.9%

Foreign securities

44.2

1.0%

59.6

1.2%

Foreign stocks

30.0

0.7%

30.5

0.6%

Monetary trusts

276.4

6.4%

288.2

6.0%

Policy loans

134.4

3.1%

138.7

2.9%

Real estate

75.1

1.7%

72.9

1.5%

Cash and call loans

80.0

1.9%

64.8

1.4%

Others

120.9

2.8%

102.6

2.1%

4,325.2

100.0％

4,778.5

100.0%

Japanese governmentand corporate bonds

Amount<Asset management review>

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

<Lengthened asset duration>
10.3.31 17.6 years
11.3.31 18.5 years
12.3.31 19.2 years■Investment in the monetary trusts are mainly into Japanese
government and corporate bonds.
■The holding ratio on the real status, of Japanese governmentand corporate bonds including those invested in monetarytrusts in the general account assets:
As of March 31, 2012: 89.2%, (As of March 31, 2011: 87.3%)

Total

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

14

Here is a breakdown of Sony Life’s general account assets as of March
31, 2012, compared with March 31, 2011.
As Sony Life continued its investment in ultralong-term bonds, mainly
Japanese government and corporate bonds, their ratio rose to 89.2% as ofMarch 31, 2012.
Going forward, Sony Life will mitigate interest rate risk by investing most
new money acquired in ultralong-term bonds.

14

Sony Life Operating Performance (7)Solvency Margin Ratio（％）

Adjusted Net Assets(Billions of yen)

3,000

1,000

[715.5]

900

871.4

2,500
+260.4pt

2,000

800

1,980.4[629.1]700

1,720.0

600

1,500

[505.9]532.6[583.8]

563.4

606.9
+43.6%

500
400

1,000
300
200

500

100

0

0

2011.3.31

2012.3.31

2009.3.31

Note:
The solvency margin ratio has been calculated according to the new standard, whichbecame effective as of the end of fiscal 2011 (March 31, 2012).

2010.3.31

2011.3.31

2012.3.31

Note:
Amount in [ ] excludes unrealized gains (losses) on held-to-maturity securities
and on policy reserve matching bonds.

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

15(Left-hand graph)
As of March 31, 2012, Sony Life’s solvency margin ratio was 1,980.4%, up
260.4 percentage points from March 31, 2011.
Legislation concerning the calculation of the solvency margin ratio wasrevised from the standpoint of raising its credibility, and this new standard
became effective as of the end of fiscal 2011 (March 31, 2012).
(Right-hand graph)
Adjusted net assets increased 43.6% from March 31, 2011.
Sony Life will continue to work on maintaining its financial soundness.

15

Highlights of Operating Performance:
Sony Assurance
Ordinary profit

Ordinary revenues(Billions of yen)

80.0
74.1

2.1

80.0

+5.9

73.3

79.1

+5.7

+7.9%

Investment income

0.7

0.8

+0.1

+13.8%

+8.0%

+7.2%

72.0

77.2

+5.2

Underwriting expenses

54.4

58.0

+3.5

+6.6%

Investment expenses

0.0

0.0

+0.0

+77.6%

17.4

19.0

+1.5

+9.1%

Ordinary profit

2.1

2.8

+0.7

+33.3%Net income

1.2

1.2

+0.0

+0.2%

33.3%

Operating, general andadministrative expenses

FY2010Change74.1

Ordinary expenses

2.8

FY2011

Underwriting income

Ordinary revenues+8.0%

FY2010FY2011(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 in automobile insurance.
◆Ordinary profit increased, due mainly to the increasein ordinary revenues as well as a reversal ofcatastrophe reserve, although a rise in net losses
paid for automobile insurance resulted in the higher
loss ratio.

(Billions of yen)
Underwriting reserves
Total net assets
Total assets

2011.3.31

2012.3.31

Change from 11.3.31

67.3

+3.2

+5.1%

16.7

18.0

+1.2

+7.4%

109.3

118.6

+9.2

+8.4%

64.0

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

16

Sony Assurance posted a 8.0% increase in ordinary revenues year on
year, to ¥80.0 billion, due to increased net premiums written, as thenumber of insurance policies in force grew primarily in its automobile
insurance.
Ordinary profit decreased 33.3% year on year, to ¥2.8 billion due mainly
to the increase of ordinary revenues as well as a reversal of catastrophe
reserve, although a rise in net losses paid for automobile insurance
resulted in the higher loss ratio.
Net income increased 0.2% year on year, to ¥1.2 billion, despite areversal of deferred tax assets associated with the reduction in thecorporate tax rate.

16

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

FY2010FY2011

ChangeDirect premiums written

72.8

78.3

+7.5%

 Increased owing to an increase in the

Net premiums written

73.3

79.1

+7.9%

number of policies in force primarily in
automobile insurance.

Net losses paid

39.2

45.0

+14.7%

Underwriting profit

1.4

2.1

+43.5%Net loss ratio

60.0%

63.3%

+3.3ptNet expense ratio

25.5%

25.7%

+0.2ptCombined ratio

85.6%

89.0%

+3.4ptNumber of policies
in force
Solvency margin ratio

2012.3.31

1.38 million

1.49 million

631.0%

557.8％

increase in the number of policies inforce in automobile insurance, as wellas rising unit cost of insurance claims.

 Increased due to an increase in the

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

2011.3.31

 Increased owing mainly to an

number of policies in force primarily
in automobile insurance.

Change from 11.3.31+0.10 million+7.6%(73.2pt)

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.
The solvency margin ratio has been calculated according to the new standard, which became effective as of the end of fiscal 2011 (March 31, 2012).
Line item amounts are truncated below ¥ 100 million; numbers of policies are truncatedbelow 10,000 policies; percentage change figures are rounded.

17

Here is an overview of Sony Assurance’s performance.

17

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written
FY2010Net Premiums Written
FY2011

ChangeFY2010(Millions of yen)

185

Fire

FY2011

Change(Millions of yen)

176

(4.8%)

Fire

8

72

+780.1%

－

－

－

5

90

－

Personal accident*

7,135

7,424

+4.0%

Personal accident*

7,369

7,626

+3.5%

Voluntary automobile

65,51670,712+7.9%

Voluntary automobile

65,24570,457

+8.0%

－

－

－

714

893

+25.1%

72,83778,313+7.5%

73,343

79,141+7.9%

FY2011

ChangeMarineCompulsory
automobile liability
Total

MarineCompulsory
automobile liability
Total

Net losses paid
*SURE, medical and cancer insurance is included in personal accident.
FY2010(Millions of yen)

－

Fire

0

40

Marine11138－

Personal accident*

1,620

1,796

+10.9%

Voluntary automobile

36,941

42,193+14.2%

683

862+26.3%

39,25645,032+14.7%

Compulsory
automobile liability
Total

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

18

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

18

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

Personal accident insurance(Millions of policies)

Number of policies in force

Other(Billions of yen)
+7.6%

100

1.15

60

3

2.8

1.4

79.1
73.3

67.4

(Billions of yen)

1.49

1.38
1.27

80

Ordinary Profit

2.5

1.2
2.1

+7.9 %

1

61.1

2.1

+33.3%

2

0.8
0.6

40

1

0.4
20
0.2
0

0
FY2008FY2009FY2010FY2011

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

0
FY2008FY2009FY2010FY2011

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

19(Left-hand graph)
The number of policies in force for the total of automobile insurance andmedical and cancer insurance increased steadily, rising 7.6% year on year,
to 1.49 million policies.
Net premiums written posted a 7.9% year-on-year increase, to ¥79.1billion.
(Right-hand graph)
Ordinary profit decreased year on year, as described in the previous
pages.

19

Sony Assurance Operating Performance (2)Reference

Combined Ratio(Net Expense Ratio + Net Loss Ratio)

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

Earned/Incurred loss ratio

Net expense ratio

（％）

100

90.2

91.9

98.1

95.2

Net loss ratio

（％）

100

81.7

+2.9pt83.3+3.4pt

80

80

89.0

85.6

72.4
60
63.5

65.8

69.7

63.3

60

57.2
55.0

+2.7pt60.0+3.3pt

40

40

20

26.7

20

26.1

25.5

FY2009FY2010+0.2pt

26.7

26.1

25.7

0

25.5

+0.2pt 25.7

0FY2008FY2011

Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid, loss
adjustment expenses and accumulation in provision for reserve for outstanding
losses to earned premiums.

FY2008FY2009FY2010FY2011Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to
net premiums written.

*Note that earthquake insurance and compulsory automobile liability
insurance are excluded from the above calculation.

20(Left-hand graph)
To help you understand the actual condition of Sony Assurance, which isin a growth phase, we show the earned/incurred loss ratio, which is theaccrual-basis loss ratio.
For the year ended March 31, 2012, the E.I. loss ratio increased 2.7
percentage points year on year, to 72.4%, owing mainly to rising unit costof insurance claims.
The net expense ratio increased 0.2 percentage point, to 25.7%.
(Right-hand graph)
The net loss ratio rose 3.3 percentage points, to 63.3%, due mainly torising unit cost of insurance claims.
This is different from the E.I. loss ratio, which reflects an increase or adecrease in provision for reserve for outstanding losses.
As a result, the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 3.4 percentage points year on year, to 89.0%.

20

Sony Assurance Operating Performance (3)Solvency Margin Ratio
（％）

1,200

800
(73.2pt)

631.0%

557.8%

400

02011.3.31

2012.3.31

Note:
The solvency margin ratio has been calculated according to the new standard, whichbecame effective as of the end of fiscal 2011 (March 31, 2012).

21

As of March 31, 2012, Sony Assurance’s solvency margin ratio was
557.8%, down 73.2 percentage points from March 31, 2011.

21

Highlights of Operating Performance:
Sony Bank (Consolidated/Non-consolidated)
Consolidated ordinary revenues
Consolidated ordinary profit<Consolidated>

32.5(Billions of yen)

29.5
+10.1%

3.9

FY2010FY2011

Consolidated ordinary revenues

29.5

32.5

+2.9

Change+10.1%

Consolidated ordinary profit

2.9

3.9

+1.0

+36.3%

Consolidated net income

1.5

1.7

+0.1

+10.4%<Non-consolidated>(Billions of yen)

2.9

+36.3%(Billions of yen)<Consolidated>
Consolidated ordinary revenues and profit both increased year on
year, due to Sony Bank’s acquisition of SmartLink network, Inc.
as consolidated subsidiary, in addition to Sony Bank’s businessexpansion.
<Non-consolidated>Gross operating profit increased ¥1.8 billion year on year due
mainly to an increases in net interest income.
【Net interest income】
Increased ¥2.8 billion owing to an increase in interest income onloans and a decrease in interest expenses on yen deposits.
【Net other operating income】
Decreased ¥1.3 billion reflecting a decrease in gains on foreignexchange transactions.
Net operating profit increased ¥0.7 billion, owing to the abovementioned increase in gross operating profit, which offset
negative impact of higher general and administrative expenses
led primarily by personal reinforcement of the full scale entry into
credit card business.

FY2010FY2011

Ordinary revenues

29.5

30.0

+0.5

+1.9%

Gross operating profit

16.4

18.3

+1.8

+11.4%Net interest income

13.2

16.1

+2.8

+21.6%Net fees and commissions

(0.1)

0.1

+0.3

－

Net other operating income

3.3

2.0

(1.3)

(39.8%)

General andadministrative expenses

12.6

13.8

+1.2

+9.6%

Ordinary profit

3.3

4.0

+0.6

+19.4%Net income

2.0

2.3

+0.2

+13.9%Net operating profit

3.6

4.3

+0.7

+21.2%

2011.3.3
1

2012.3.31

59.9

62.7

+2.8

+4.7%

0.4

1.7

+1.3

314.5%

1,761.8

1,890.5+128.6+7.3%(Billions of yen)
Total net assets
Net unrealized gains
on other securities (net of taxes)
Total assets

ChangeChange from 2011.3.31

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

22

Sony Bank’s consolidated ordinary revenues and consolidated ordinary
profit both increased year on year due to Sony Bank’s acquisition of
SmartLink network, Inc. as consolidated subsidiary, in addition to SonyBank’s business expansion.
Sony Bank’s non-consolidated ordinary revenues increased 1.9% year on
year, to ¥30.0 billion, because of higher interest income on loans led by
the growing balance of mortgage loans, whereas foreign exchangetransactions decreased.
Gross operating profit increased 11.4% from a year earlier, to ¥18.3
billion, due mainly to an increase in net interest income.
General and administrative expenses expanded 9.6% year on year, to¥13.8 billion, due to the personnel reinforcement associated with the fullscale entry into credit card business.
As a result, Sony Bank’s non-consolidated ordinary profit increased¥19.4%, to ¥4.0 billion.
Sony Bank’s non-consolidated net income amounted to ¥2.3 billion, up
13.9%, due to higher ordinary profit .

22

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)
2011.3.31

2012.3.31

Customer assets

1,755.5

1,864.3+108.7+6.2%

Deposits

1,649.1

1,762.2+113.1+6.9%

Yen

1,289.8

1,390.5+100.6

+7.8%

359.2

371.7

+12.4

+3.5%

106.4

102.0

(4.4)

(4.2%)

722.4

835.5

+113.1+15.7%(Billions of yen)

Foreign currency
Investment trusts
Loans outstanding

ChangeMortgage loans

656.0

749.6

+93.5

+14.3%

Others66.4

85.9(*1)+19.5+29.4%

Number of accounts(10 thousands)

85

89

+4

+4.7%

*1

Capital adequacy ratio(*2)(domestic criteria)

10.84%

11.58%+0.74pt

Tier 1 ratio

10.41%

9.63%(0.78pt)*1. Loans in others include corporate loans of ¥78.7billion.
*2. Excludes accounts that have been dormant for a long period of time.



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



Foreign currency deposit increased,
owing to stable demand of foreign
currency-based investment backed by
the ongoing yen appreciation
throughout the fiscal year.

Investment trusts decreased reflecting
a decline in reference price.

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

 In October 2011, Sony Bank borrowed
funds(¥10 billion) from SFH as
subordinated loan to reinforce its
financial base.The Tier 1 ratio was also
kept at a highlevel.
.

*3. 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 10 thousands accounts; percentage change figures are rounded.

23

Here is an overview of Sony Bank’s performance.

23

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

FY201016.4

FY2011

18.3<Reference> Interest Spread(Managerial Accounting Basis)

Change+1.8

Yield on investment+11.5%

Yield on financing

Interest spread

15.1

17.7

+2.6

+17.5%Net fees andcommissions *2 ②

0.8

1.1

+0.3

+40.8%Net other operating
income *3

Net interest income *1 ①

(%)

0.4

(0.6)

(1.0)

-

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

15.9

18.9

+2.9

+18.7%

Operating expenses andother expenses ③

12.8

13.9

+1.1

+8.6%

3.0

4.9

+1.8

+60.9%Net operating profit(core profit)= (A)－③+0.08pt●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 transactions, and stands for Sony Bank’s basic profits.

Note: 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.

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

24

We break down gross operating profit on a managerial accounting basis
to facilitate an understanding of operational sources of revenue andprofits.
(Left-hand table)
Net interest income on a managerial accounting basis increased ¥2.6
billion year on year, to ¥17.7 billion, due to growing balance of assets,
especially mortgage loans, and a decrease in interest expenses.
Net fees and commissions amounted to ¥1.1 billion, ¥0.3 billion up year
on year, owing to an increase in commissions from credit card businessdespite a decrease in profits on customer dealings in foreign currencytransactions.
Net other operating income decreased ¥1.0 billion, reflecting lower gains
on bond dealing transactions.
Consequently, gross operating profit on a core profit basis increased ¥2.9
billion year on year, to ¥18.9 billion, and net operating profit on a coreprofit basis increased ¥1.8 billion year on year, to ¥4.9 billion.
(Right-hand graph)
The yield on investment for FY2011 was 1.38%.
The yield on financing for FY2011 was 0.41%.
Consequently, interest spread for FY2011was 0.97%.

24

Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen deposits

Loans
Mortgage loans

Foreign currency deposits

Others*Including corporate loans of ¥78.7 billion.

(Billions of yen)(Billions of yen)

835.5

1,762.2
1,649.1
1,510.0+113.1

85.9*

722.4

371.7

+113.1

1,326.3

586.6
477.0
749.6
1,390.5

Line item amounts are truncated below ¥100 million

25(Left-hand graph)
As of March 31, 2012, deposits (the sum of Japanese yen and foreign
currency deposits) amounted to ¥1,762.2 billion, up ¥113.1 billion fromMarch 31, 2011.
Of which yen deposit increased ¥100.6 billion, due to an effect of special
offer for winter 2011 bonus season.
Of which foreign currency deposit amounted to ¥371.7 billion, up ¥12.4
billion from March 31, 2011, owing to stable demand of foreign currencybased investment backed by the ongoing yen appreciation throughout the
fiscal year.
(Right-hand graph)
Loans expanded to ¥835.5 billion, up ¥113.1 billion, from March 31, 2011,
owing to a growing balance of mortgage loans, as well as an increase incorporate loans.

25

Operating Performance:
Sony Bank (Non-consolidated) (2)Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)

Balance of Securities by Credit Ratings
AAA
BBB

AA
Other

A
Capital Adequacy Ratio

Tier1 Ratio(Billions of yen)
(%)

13.37
940.1

12.09

912.9

880.1
823.1

(27.1)+0.74pt

11.58

10.84

12.88
11.64

10.41 (0.78pt)

9.63<Reference>
In October 2011
Sony Bank borrowed funds (¥10.0 billion) from
SFH as subordinated loan to reinforce its financial base.

* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Act, in accordance with FSA Notification No. 19(2006). The capital adequacy ratio newly adopted the special exception of the standard
mentioned above, in accordance with the FSA Notification No. 79 (2008).
Amounts are truncated below ¥100 million.

26(Left-hand graph)
As of March 31, 2012, the balance of securities decreased ¥27.1billion, to¥912.9 billion from March 31, 2011.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of March 31, 2012, Sony Bank’s non-consolidated capital adequacy
ratio (domestic criteria) was 11.58%, up 0.74 percentage point fromMarch 31, 2011, owing to the funds of ¥10.0 billion transferred in October
2011 from SFH to Sony Bank as subordinated loan to reinforce its
financial base.
Sony Bank continue to maintain a sound financial position.

26

Consolidated Financial Forecast
for the Year Ending March 31, 201327

27

Consolidated Financial Forecast
for the Year Ending March 31, 2013
■Consolidated financial forecast for the year ending March 31, 2013
FY2011(Billions of yen)

Consolidated ordinary revenues

FY2012
Forecast

ActualChange1,078.0

1,115.0+3.4％Life insurance business

967.5

994.5

+2.8％

Non-life insurance business

80.0

86.8

+8.4％

Banking business

32.5

34.5

+6.0％

Consolidated ordinary profit

74.6

67.0

(10.2％)

Life insurance business

68.1

Non-life insurance business

2.8

61.5
2.6

(9.8％)(9.1％)

Banking business

3.4

3.6

+3.9％

Consolidated net income

32.8

37.0

+12.8％<Reference>
Consolidated financial results for the year ended March 31, 2012
FY2011
Original
Forecast(Announced on
May 20, 2011)(Billions of yen)

Consolidated ordinary
revenues■Life insurance business
Ordinary revenues for FY2012 are expected to increase year on year. In the current
fiscal year, we do not expect to record an increase in investment income that we posted
at the previous year-end due to the market, although we do anticipate that income frominsurance premiums will increase in line with steady growth of the policy amount in force.
Ordinary profit is expected to decrease, since we do not anticipate the profit recordedinthe previous fiscal year. In the previous fiscal year, Sony Life recorded a profit due tolower insurance claims and other payments relating to the Great East Japan Earthquake
than we had estimated at the end of March 2011, as well as gains on sale of securities,
reflecting the process of shifting bond holdings to ultralong-term bonds. However, we do
not anticipate such gains for FY2012.
■Non-life insurance business
Ordinary revenues for FY2012 are expected to increase year on year, owing to anincrease in net premiums written, primarily for automobile insurance.
Ordinary profit is expected to slightly decrease, mainly because we expect the loss
ratio to stay at a high level and the expense ratio to slightly increase resulting from anincrease in system-related expenses.
■Banking Business
Ordinary revenues for FY2012 are expected to rise year on year, owing mainly to a
growing balance of loans, especially mortgages.
Ordinary profit is expected to rise, as we anticipate a steady increase in grossoperating profit, driven by business expansion.

<Reasons for the revision of the forecast>
FY2011
Revised Forecast(Announced on
Feb. 2, 2012)

FY2011
Actual- In the life insurance business, insurance claims and other payments relating
to the Great East Japan Earthquake were lower than we had estimated at theend of March 2011.
- Also in the life insurance business, gains on sale of securities, reflecting theprocess of shifting its bond holdings to ultralong-term bonds, were recorded.

1,022.0

1,047.
0

1,078.0

Consolidated ordinary profit

59.0

67.0

74.6

Consolidated net income

29.0

29.0

32.8

<Reason for a change from the revised forecast>- Due to the market recovery for the forth quarter.

(Amounts are truncated below ¥100 million; percentage changes are rounded.)28

Here is our consolidated financial forecast for the fiscal year ending
March 31, 2013.
With regard to SFH’s financial results forecast for the year ending March
31, 2013, generally stable and sustainable business growth is expected inall businesses: life insurance, non-life insurance and banking.
Ordinary revenues for FY2012 are expected to increase 3% year on year.
In the current fiscal year, we do not expect to record an increase ininvestment income that we posted at the previous year-end due to themarket, although we do anticipate that income from insurance premiums
will increase in the life insurance business.
Ordinary profit is expected to decrease, since we do not anticipate theprofit recorded in the previous fiscal year in the life insurance business. In
the previous fiscal year, Sony Life recorded a profit due to lower
insurance claims and other payments relating to the Great East Japan
Earthquake than we had estimated at the end of March 2011, as well as
gains on sale of securities, reflecting the process of shifting bond holdings
to ultralong-term bonds. However, we do not anticipate such gains for
FY2012.
Net income is expected to increase, since we do not anticipate thenegative impact of the reversal of deferred tax assets recorded in theprevious fiscal year associated with the reduction in the corporate tax
rate.

28

Dividend Policies

29

29

Dividend Policies■Basic Policy on Returns to Shareholders and Dividends
SFH places priority on returning profits to shareholders and raising return on equity. Our basic policy
is to pay a stable dividend to shareholders while ensuring the high financial soundness needed togain and maintain the confidence of the customers of the group companies as well as the internal
reserves needed for future business development.

■ Consolidated Net Income and Dividend Result/Forecast
FY2010FY2011

Consolidated net income¥41.7 billion¥32.8 billion

Annual dividend amount¥8.7 billion¥8.7 billion

¥20

¥20

Dividend per share*Amounts are truncated below ¥100 million.

We have not decided the level of the annual cash dividend per share for FY2012. We will consider
this leveｌ, taking future operating performance into account.

30

We plan to pay the annual cash dividend of ¥20 per share for the year
ended March 31, 2012, unchanged from the previous period.
We have not decided the level of the annual cash dividend per share forthe year ending March 31, 2013. We will consider this level, taking future
operating performance into account.

30

Sony Life’s Preliminary MCEV
as of March 31, 2012,
andRisk Amount Based on Economic Value

31

31

Sony Life’s Preliminary MCEV as of March 31, 2012,
and Risk Amount Based on Economic ValueMCEV results 【Preliminary】

MCEV

2011.3.31

2012.3.31(Interest swap rate)(JGB yield)(JGB yield)

Change2011.3.31(JGB yield) vs.
2012.3.31(JGB yield)

853.6

913.5

1,041.5+128.1

Adjusted net worth

230.3

230.3

409.2

+178.9

Value of existing business

623.3

683.2

632.4

(50.8)

56.8

61.7

65.2

+3.5

Of which, new business value(Billions of yen)
2011.3.31

The value of existing business as of March 31, 2012, was down year on year, due mainly to a decline in ultralong-term interest
rates, which offset the positive impact of the addition of new business and a reduction in the corporate tax rate. On the other
hand, adjusted net worth as of March 31, 2012, was up, due primarily to an increase in prices of ultralong-term JGBs held froman ALM perspective. Consequently, MCEV as of March 31, 2012, was up from a year earlier.

 Sony Life used JGB yields as the risk-free rate when calculating MCEV as of March 31, 2012, rather than interest swap rates,

which were used previously, as JGBs are considered securities with the lowest credit risk. JGBs are also regarded as superior
yen-denominated liabilities in terms of investment availability in keeping with accounting and regulatory constraints andultralong-term liquidity.
 The risk amount based on economic value (after tax) as of March 31, 2012, was ¥551.5 billion. The risk amount based on

economic value refers to the total amount of Sony Life’s risks, comprehensively examined and including insurance underwriting
risk and market risk. Sony Life ensures financial soundness by keeping these risks within a proper level of MCEV, which is
capital based on economic value.
Note: Measurement of risk based on economic value takes one-year VaR to be 99.5% and is measured using an internal model that refers to the EU
Solvency II (QIS5) standard model.
* Please keep in mind that the validity of these calculations has not been verified by outside specialists. The calculation of MCEV as of March 31, 2012,in accordance with the MCEV principles and verified by outside specialists, is scheduled to be announced on May 25, 2012.
*Amounts are truncated below ¥100 million.

32

Here is Sony Life’s Preliminary Market Consistent Embedded Value (MCEV) as of March
31, 2012 and risk amount based on economic value.
Sony Life’s preliminary MCEV as of March 31, 2012 was ¥1,041.5 billion.
The value of existing business as of March 31, 2012, was down year on year, due mainly
to a decline in ultralong-term interest rates, which offset the positive impact of theaddition of new business and a reduction in the corporate tax rate. On the other hand,adjusted net worth as of March 31, 2012, was up, due primarily to an increase in prices
of ultralong-term JGBs held from an ALM perspective.
Sony Life used JGB yields as the risk-free rate when calculating MCEV as of March 31,
2012, rather than interest swap rates, which were used previously, as JGBs are
considered securities with the lowest credit risk. JGBs are also regarded as superior yendenominated liabilities in terms of investment availability in keeping with accounting andregulatory constraints and ultralong-term liquidity.
The risk amount based on economic value(after tax) as of March 31, 2012, was ¥551.5
billion, This figure should help, by which we would like you to understand Sony Life’s
financial soundness on an economic value basis.
Please keep in mind that the validity of these calculations has not been verified byoutside specialists. The calculation of MCEV as of March 31, 2012, in accordance with
the MCEV principles and verified by outside specialists, is scheduled to be announced on
May 25, 2012.

32

Appendix

33

Appendix33

Negative impact from the Great East Japan
Earthquake (Appendix)Positive impact on FY11 consolidated ordinary
profit of the Great East Japan Earthquake: ¥3.9 billion(Principal Impact on Each Business)
Life Insurance Business・ Profit recorded as insurance claims and other payments relating to the Great East Japan Earthquake werelower than we had estimated as of the end of the previous fiscal year: ¥3.9 billion
Non-life Insurance Business・ Temporally slowdown in the sales of automobile insurance policies in April has recovered from May onward
due to the brisk sales. The sales target of the new policies are back on track from the original projection
Banking Business・ Loan losses on mortgage loans in stricken region were limited to the operating results･･･････････････････････････････････････・・・・・・・・・・・・・・･･････････････････････････････・・・・・・・・・・・・・・・・



Negative impact on FY10 consolidated ordinary
profit of the Great East Japan Earthquake : ¥5.5 billion(Principal Impact on Each Business)
Life Insurance Business・ Insurance claims and other payments (including provision for reserve for outstanding claims):¥5.4 billion
Non-life Insurance Business・ Mainstay automobile insurance exempt from earthquakes and tsunamis
Banking Business・ Increased allowance for mortgage loans in stricken region. *Amounts are truncated below ¥100 million

34(Negative impact from the Great East Japan Earthquake (Appendix))34

Recent Topics 1
AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products: Variable Individual Annuity (2 types, 3 products)
Sales Channels: Lifeplanner sales employees and affiliated Banks (8*) As of May 18, 2012
Financial Highlights for FY2011:
Number of new policies: 2,498, New policy amount: ¥17.5 billion(Number of policies in force: 3,669 policies, Policy amount in force: ¥30.4 billion As of March 31, 2012)*Amounts are truncated below ¥100 million.

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 25% of the balance ofmortgage loans as of March 31, 2012
Sony Life accounts for 27% of the amount of
new mortgage loans for FY2011*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies for FY2011* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

35

(Recent Topics 1)

35

Recent Topics 2<Highlights for FY2011>
Apri.1, 2011

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

Apr. 28, 2011

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

May 1, 2011

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

May 2, 2011

Sony Life began sales of new income protection insurance to cover three major diseases (Type II)

May 16, 2011

Sony Bank began offering Brazilian real for foreign currency deposits

July 1, 2011

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

Aug. 3, 2011

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

Aug. 8, 2011

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

Aug. 22, 2011

Sony Bank opened representative office in Sydney

Aug. 31, 2011

Sony Assurance became the first company to receive Eco Mark Certification in automobile insurance

Oct. 25, 2011

Sony Financial Holdings issued No. 1 unsecured corporate bonds

Nov. 2, 2011

Sony Life began offering new product: Cancer Drug Therapy Rider

Mar. 1, 2012

Sony Assurance acquired a part of shares and share options in Anicom Holdings, Inc.

36

(Recent Topics 2)

36

Sony Life: FY12 Basic Investment Policy＜Basic Policy＞
 Continue to invest in ultralong-term bonds from the ALM perspective,

with the aim of stable growth of MCEV
 Carefully Invest in risk assets(Billions of yen)Japanese stocks
JGBs, other bonds
Foreign stocks
Foreign bonds
Real estates

Results for FY2011 / YoY change(21.6)
36.6+667.84,417.8
26.8
+0.3
+14.0
62.3
(1.4)
79.9

Plans for FY2012
Flat
Increase
Flat
Flat
Flat

*Amounts are truncated below ¥100 million.

(Sony Life: FY12 Basic Investment Policy)

37

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)
2011.3.31

2011.6.30

2011.9.30

2011.12.31

2012.3.31

Net valuation
Net valuation
Net valuation
Net valuation
Net valuation
Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses)
amountrecorded inamountrecorded inamountrecorded inamountrecorded inamountrecorded inincomeincomeincomeincomeincome
－

－

－

－

－

－

－

－

－

－

Note: Line item amounts are truncated below ¥100 million.

38(Sony Life: Fair Value Information on Securities)

38

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Real Net Assets and Solvency Margin①Net Assets(B/S)(Billions of yen)

②Real
Net Assets③Solvency
Margin2011.3.31 2012.3.31 2011.3.31 2012.3.31 2011.3.31 2012.3.31

Total shareholders’ equity

209.8

232.2

209.8

232.2

200.7

223.1

Net unrealized gains on other securities, net of taxes

Reserve for possible loan losses

7.0
－
(1.4)
－
－
－

34.0
－
(1.3)
－
－
－

7.0
－
(1.4)
16.7
51.5
－

34.0
－
(1.3)
25.3
55.3
－

－
20.8
－
16.7
51.5
0.0

－
54.6
－
25.3
55.3
0.0

Net unrealized gains on real estate

－

－

1.9

0.6

1.0

(0.1)

Excess amount of policy reserves based on Zillmer method

－

－

334.2

350.4

270.2

304.4

Unallotted portion of reserve for policyholders' dividends

－
－
－
－
－

－
－
－
－
－

1.1
－
－
(22.1)
8.0

0.7
－
－
155.8
18.3

1.1
－
63.3
－
－

0.7
－
58.7
－
－

215.3

264.8

606.9

871.4

625.7

722.1

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

Future profits
Deferred tax assets
Unrealized gains (losses) on held-to-maturity bonds
Deferred tax liabilities for available-for-sale securities
Total

Notes
③After estimated distributed
income deducted③Before tax x 90%②Before tax（After revaluation）③Before tax(Before revaluation) X85%
(X100% if losses)
After excluding nonincludible amount②Before 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 ¥715.5 billion as of March 31, 2012.

Amounts are truncated below ¥100 million.

39(Sony Life’s Breakdown of Net Assets)

39

Sony Life: New Policy Amount (quarterly trend)
New Policy Amount (quarterly trend)
New Policy Amount(Billions of yen)Amounts are truncated below ¥100 million.

(Sony Life: New Policy Amount (quarterly trend) )40

Sony Life: Annualized Premiums from
New Policies (quartery trend)
Annualized Premiums from New Policies (quarterly trend)
Annualized Premiums from New Policies

Of which, Third-sector insurance(Billions of yen)Amounts are truncated below ¥100 million.

41(Sony Life: Annualized Premiums from New Policies (quarterly trend))

41

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

42(Contact)42