Consolidated Financial Summary
for the Year Ended March 31, 2013
May 20, 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 year ended March 31, 2013
(1) Operating results
Ordinary Revenues
For the year ended
March 31, 2013
For the year ended
March 31, 2012

Ordinary Profit

Net Income

Millions of yen% change

Millions of yen

1,259,041

16.8

79,252

6.2

45,06437.3

1,078,070

7.6

74,625(2.9)

32,812(21.3)

Note: Comprehensive Income:% change

Net Income per
Share(Fully Diluted)

Yen

For the year ended
March 31, 2013
For the year ended
March 31, 2012

Net Income on
Shareholders'EquityYen% change

59.4％
88.9％

For the year ended March 31, 2013: ¥96,225 million:
For the year ended March 31, 2012: ¥60,376 million:

Net Income per
ShareMillions of yen

Ordinary Profit on
Total Assets

Ordinary Profit on
Ordinary Revenues

%

%

%

103.60

—

11.5

1.0

6.3

75.43

—

10.2

1.1

6.9

Notes: Equity in earnings (losses) of affiliates:

For the year ended March 31, 2013: ¥(1,718) million
For the year ended March 31, 2012: ¥(1,179) million(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of March 31, 2013

8,096,164

435,4445.4

997.94As of March 31, 2012

7,241,414

347,800

4.8

796.64

Notes: 1. Shareholders'equity:

As of March 31, 2013: ¥434,105 million
As of March 31, 2012: ¥346,540 million(3) Cash flows

For the year ended
March 31, 2013
For the year ended
March 31, 2012

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Millions of yen

Millions of yen

Millions of yen

Cash and Cash
Equivalents at end of
fiscal year
Millions of yen

580,882(550,159)(5,017)201,404

524,264(512,198)

1,782

175,651

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2012
For the year ended
March 31, 2013
For the year ending
March 31, 2014
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

AnnualDividend
AmountMillions of yen

Dividend
Payout
Ratio%

Dividend on
Net Assets
%

—

0.00

—

20.00

20.00

8,700

26.5

2.7

—

0.00

—

25.00

25.00

10,875

24.1

2.8

—

0.00

—

25.00

25.00

29.4

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): Yes
Excluded: Two companies; Corporate name: Sony Bank Securities Inc. ・Sony Life Insurance (Philippines) Corporation
Note: For details, please refer to the section entitled “Ⅳ．Consolidated Financial Statements” under “5. Notes to the Consolidated Financial
Statements” under “1) Changes in scope of consolidation during the period under review”on page 21 of the attachment.

(2) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None(b) Changes in accounting policies due to other reasons: Yes(c) Changes in accounting estimates: Yes(d) Restatements of the consolidated financial statements: None

Notes: Article 14-7 of the Ordinance on Terminology, Forms and Preparation Methods of Financial Statements, etc., has been applied. For details,
please refer to the section entitled “Ⅳ．Consolidated Financial Statements” under “5. Notes to the Consolidated Financial Statements” under “
2) Changes in accounting policies which are difficult to distinguish from change in accounting estimates” on page 21 of the attachment.

(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of March 31, 2013:
As of March 31, 2012:(b) Number of treasury shares
As of March 31, 2013:
As of March 31, 2012:(c) Weighted-average number of shares
For the year ended March 31, 2013:
For the year ended March 31, 2012:

435,000,000 shares
435,000,000 shares— shares— shares435,000,000 shares
435,000,000 shares

Audit of Quarterly Financial Statements
This earnings report is exempt from audit procedure based upon the Financial Instruments and Exchange Act. Audit procedures areunderway as of the date of this report.

Content of Supplemental Materials
I.

Qualitative Information and Financial Statements

II.
III.

IV.

1.

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

3

2.

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

6

3.

Basic Policy on Returns to Shareholders and Dividends for theYear Ended March 31, 2013, and the Year Ending March 31, 2014・・・・・・・・・・・・

6

Status of the Corporate Group・・・・・・・・・・・・・・・・・・・・・・・・・・
Management Policies

61.

Company’s Basic Management Policies・・・・・・・・・・・・・・・・・・・・・・・・・・・

8

2.

Key Management Benchmarks・・・・・・・・・・・・・・・・・・・・・・・・・・・

8

3.

Medium- to Long-Term Management Strategies・・・・・・・・・・・・・・・・・・・・・・

9

4.

Tasks Ahead for the Company・・・・・・・・・・・・・・・・・・・・・・・・・・・・

9

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 112.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・13(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・16
3.

Consolidated Statements of Changes in Net Assets・・・・・・・・・・・・・・・・・・・・17

4.

Consolidated Statements of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・19

5.

Notes to the Consolidated Financial Statements
1) Changes in scope of consolidation during the period under review・・・・・・・・・・・・・21
2) Changes in accounting policies which are difficult to distinguish from changes inaccounting estimates・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21
3) Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・21
4) Financial Instruments・・・・・・・・・・・・・・・・・・・・・・・・・・・・27
5) Investments in Securities･・・・・・・・・・・・・・・・・・・・・・・・・・・・30
6) Investments in Monetary Trusts・・・・・・・・・・・・・・・・・・・・・・・・・・・32
7) Derivative financial instruments・・・・・・・・・・・・・・・・・・・・・・・・・・・33
8) Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 34

V.

Attachment
Consolidated Financial Results for the Year Ended March 31, 2013 and Sony Life’s PreliminaryMarket Consistent Embedded Value as of March 31, 2013・・・・・・・・・・・・・・・・・・ 36* We will upload the press releases on Sony Life’s Market Consistent Embedded Value as of March 31, 2013,
scheduled as below.
・ Preliminary summary: Scheduled to be uploaded on May 20, 2013 at 15:00 (Tokyo)
・ Detailed report: Scheduled to be uploaded on May 27, 2013 at 15:00 (Tokyo)
Please see further details at our website: http://www.sonyfh.co.jp/web/index_en.html

1* The Conference Call for explaining the Sony Financial Group financial results will be held at 18:00 (Tokyo),
May 20, 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 May 20, 2013 after 15:00, and its Q&A
summary at a later date on Earnings Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/web/en/financial_info_e/results.html* On May 20, 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 its financial results for the year ended
March 31, 2013. SFH prepared an English-language summary of those Japanese announcements made by theabove subsidiaries, solely for convenience of non-Japanese readers.

2I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
1) Analysis of Operating Performance
During the year ended March 31, 2013 (April 1, 2012 through March 31, 2013), the Japanese economy initially benefited
from an increase in public spending led by reconstruction demand following the Great East Japan Earthquake, as well as firm
personal consumption. However, affected by lackluster exports stemming from to the protracted European debt crisis andother aspects of decelerating overseas economic activity, the economic outlook was uncertain from the summer of 2012.
Looking at financial conditions, foreign exchange markets were initially characterized by high levels of yen appreciation
against other major currencies as the global economy decelerated. Long-term interest rates remained low as investors
continued to be risk-averse.
However, from around the middle of November 2012 consumer sentiment improved as stock prices rose, and personal
consumption remained firm. At the same time, the change of administration in Japan was accompanied by mounting
anticipation of aggressive monetary easing, causing long-term interest rates to fall further and prompting yen depreciation.
Given ongoing global economic deceleration and the possibility that expectations of Japanese economic recovery may bepremature, we believe that the outlook remains uncertain. Against this backdrop, the Sony Financial Group provided
high-quality products and services with the aim of becoming one of the most highly trusted financial services groups. The
Group also implemented various measures to satisfy increasingly diverse customer needs.
As for its operating results, consolidated ordinary revenues increased 16.8% compared with the previous fiscal year, to¥1,259.0 billion, owing to increases in ordinary revenues from all the businesses: life insurance, non-life insurance andbanking. Consolidated ordinary profit increased 6.2% year on year, to ¥79.2 billion. By business segment, ordinary profit
from the life insurance business and the banking business increased, whereas ordinary profit from the non-life insurance
business decreased year on year.
Extraordinary losses were recorded during the year ended March 31, 2013 due mainly to the provision of a reserve forprice fluctuations of ¥6.9 billion in the life insurance business, compared with a ¥8.5 billion provision during the previous
fiscal year.
After accounting for extraordinary losses, provision for reserve for policyholders’ dividends and income taxes, net income
for the year ended March 31, 2013 was up 37.3% year on year, to ¥45.0 billion, reflecting the rise in ordinary profit, and theprevious period’s increase in deferred income taxes owing to the partial reversal of deferred tax assets associated with the
reduction in the corporate tax rate.
Segment Information by Business< Life insurance business >In the life insurance business, ordinary revenues increased 18.1% year on year, to ¥1,142.3 billion, due mainly to a significant
increase in income from insurance premiums associated with steady growth in policy amount in force, and an increase
in investment income on separate accounts due to the market recovery. Ordinary profit increased 6.7% year on year, to¥72.7 billion, due primarily to a reversal of policy reserves for minimum guarantees for variable life insurance and arecovery from negative spread into positive at Sony Life. These positive factors surpassed the company’s negative
effects stemming from recording higher profit in the previous fiscal year due to the reversal of reserve for outstanding
claims related to the Great East Japan Earthquake.

< Non-life insurance business >In the non-life insurance business, ordinary revenues increased 5.8% year on year, to ¥84.7 billion, due to an increase in net
premiums written, as the number of insurance policies in force grew primarily for our mainstay automobile insurance.
Ordinary profit decreased 17.1% year on year, to ¥2.3 billion, owing mainly to higher provision of reserve for outstanding
losses, although net loss ratio remained at the same levels.

3

< Banking business >In the banking business, ordinary revenues increased 5.5% compared with the previous fiscal year, to ¥34.3 billion, due to anincrease in interest income on loans led by the growing balance of mortgage loans and an increase in net fees andcommissions resulting from Sony Bank’s July 2011 acquisition of SmartLink Network, Inc., which became its
consolidated subsidiary. Ordinary profit rose 14.2% year on year, to ¥3.9 billion due mainly to the above-mentioned
increase in profit related to mortgage loan business.
Ordinary Revenues(Millions of yen)Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the year ended
March 31, 2012

For the year ended
March 31, 2013

967,582
80,09632,553

1,142,397
84,711
34,329

18.1
5.8
5.5

1,080,232

1,261,438

16.8

Change (%)(2,162)(2,396)－

1,078,070

1,259,041

16.8

Ordinary Profit(Millions of yen)
For the year ended
March 31, 2012

For the year ended
March 31, 2013

68,1872,859
3,463

72,770
2,371
3,953

6.7
(17.1)
14.2

74,509116

79,095
156

6.2
35.0

74,62579,252*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

6.2

Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments*
Consolidated

Change (%)2) Consolidated Financial Forecast for the Year Ending March 31, 2014
With regard to SFH’s financial forecast for the year ending March 31, 2014 (April 1, 2013, through March 31, 2014), stable
and sustainable business growth is expected in all the businesses: life insurance, non-life insurance and banking.
However, ordinary revenues and ordinary profit for the year ending March 31, 2014 are expected to decrease year on year
mainly because we do not expect such increases in ordinary revenues and ordinary profit due to the market recovery in thelife insurance business as recorded in the previous fiscal year.
Without these market factors and influences by the revision of policy reserve discount rate, we expect stable increases inordinary revenues and ordinary profit for the year ending March 31, 2014.
The consolidated financial forecast for the fiscal year ending March 31, 2014, as follows, is unchanged from the forecast
announced on May 9, 2013.
(Billions of yen)
(Reference)(Forecast)
For the year ended March 31, 2013
For the year ending March 31, 2014
Ordinary revenues

1,259.0

1,220.0

Ordinary profit

79.2

69.0

Net income

45.0

37.0

We do not consider the effects of market fluctuations after April 2013 within our forecast. Therefore, the figures stated above
may differ from actual results for a variety of reasons.

4Business segment forecasts for the fiscal year ending March 31, 2014 (April 1, 2013 through March 31, 2014) are as follows.
Forecast figures from each business reflect corporate and eliminations.
<Life insurance business>
Ordinary revenues for the fiscal year ending March 31, 2014, are expected to decrease 3.7% year on year, to ¥1,099.9
billion. During the year ending March 31, 2014, 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. We expect ordinary profit to decrease 15.5%
year on year, to ¥61.4 billion since we do not expect such a reversal of policy reserves related to minimum guarantees forvariable 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.

(Reference)
For the year ended March 31, 2013

(Billions of yen)
(Forecast)
For the year ending March 31, 2014

Ordinary revenues

1,142.3

1,099.9

Ordinary profit

72.7

61.4

<Non-life insurance business>
Ordinary revenues for the year ending March 31, 2014 are expected to rise 4.5% year on year, to ¥88.5 billion, due to anincrease in net premiums written, mainly for mainstay automobile insurance. Ordinary profit is expected to increase 30.4%
year on year, to ¥3.0 billion, mainly because we expect the aforementioned increase in net premiums written, as well as adecline in the loss ratio.
(Billions of yen)
(Reference)(Forecast)
For the year ended March 31, 2013
For the year ending March 31, 2014
Ordinary revenues
84.7
88.5
Ordinary profit

2.3

3.0

<Banking business>
Ordinary revenues for the year ending March 31, 2013, are expected to decrease 0.9% year on year, to ¥34.0 billion, owing
mainly to a decrease in revenues from SmartLink network, Inc., Sony Bank’s consolidated subsidiary, although an increase ininterest income on loans led by a growing balance of mortgage loans is anticipated. Ordinary profit is expected to increase
10.3% year on year, to ¥4.3 billion, mainly because we anticipate a steady increase in gross operating profit, driven bybusiness expansion.

(Reference)
For the year ended March 31, 2013

(Billions of yen)
(Forecast)
For the year ending March 31, 2014

Ordinary revenues

34.3

34.0

Ordinary profit

3.9

4.3

5

2. Qualitative Information on Consolidated Financial Position
1) Assets, Liabilities and Net Assets
As of March 31, 2013, total assets amounted to ¥8,096.1 billion, up 11.8% from March 31, 2012. Among major components
of assets, securities, mostly Japanese government bonds, amounted to ¥6,202.3 billion, up 12.1% from March 31, 2012. Loanscame to ¥1,115.3 billion, up 14.4%, and monetary trusts amounted to ¥324.3 billion, up 7.0%.
Total liabilities were ¥7,660.7 billion, up 11.1% from March 31, 2012. Major components of liabilities included policy
reserves and others of ¥5,601.0 billion, up 12.9%, and deposits totaled ¥1,857.3 billion, up 5.5%. In January 2013, SFH issued¥10.0 billion in bonds and transferred the funds raised through this issue to Sony Bank as a loan aimed at reinforcing thatcompany’s financial base.
Total net assets were ¥435.4 billion, up 25.2% from March 31, 2012. This included net unrealized gains on other securities,
net of taxes, which increased ¥51.3 billion, to ¥88.3 billion.
2) Cash FlowsNet cash provided by operating activities for the year ended March 31, 2013, was ¥580.8 billion, up ¥56.6 billion from theprevious fiscal year, due mainly to higher income from insurance premiums in the life insurance business. The reason forthis increase in cash inflows was higher income from insurance premiums owing to steady growth in the policy amount inforce in the life insurance business which offset an increase in cash outflows due to an increase in loans resulting from a
growing balance of mortgage loans in the banking business.
Net cash used in investing activities was ¥550.1 billion, up ¥37.9 billion from the previous fiscal year, due mainly to anincrease in cash outflows from purchases of securities in the life insurance business. The primary reason for this increase inoutflows was due to a decline in inflows from sale and redemption of securities in the life insurance business.
Net cash used in financing activities came to ¥5.0 billion due primarily to dividend payments, up ¥6.8 billion from theprevious fiscal year.
As a result of the above factors, cash and cash equivalents at March 31, 2013, were ¥201.4 billion, up ¥25.7 billion fromMarch 31, 2012.

3. Basic Policy on Returns to Shareholders and Dividends for the Year Ended March 31, 2013, and theYear Ending March 31, 2014
For the year ended March 31, 2013, taking this period’s overall operating performance into consideration, we plan to pay a
year-end dividend of ¥25 per share (total amount of dividend: ¥10.875 billion), up ¥5 from the previous period of ¥20.
Our basic dividend policy is to maintain stable dividend payments while securing sufficient internal reserves to ensure thefinancial soundness of the Group companies and invest in growing fields. Based on this policy, SFH aims for steady increases
in dividends in line with earnings growth over the medium and long terms. Our medium-term target for the dividend payout
ratio is 30% to 40% of consolidated net income. Management will determine specific dividend amounts for each fiscal year bytaking into account a comprehensive range of factors, including the capital adequacy of each Group company relative to risk,
investment opportunities, business forecasts and legal and regulatory developments worldwide.
For the year ending March 31, 2014, we plan to pay a year-end dividend of ¥25 per share (total amount of dividend: ¥10.875
billion).
We will continue to make dividend payments once a year, following the resolution of the general meeting of shareholders,with the dividend record date at the end of each fiscal year.
Please refer to the attached presentation materials for non-consolidated operating results of SFH’s principal subsidiaries,
Sony Life, Sony Assurance and Sony Bank for the year ended March 31, 2013.

II. Status of the Corporate GroupOn April 1, 2004, SFH was established as a financial holding company (an insurance holding company and a bank6

holding company) through a corporate separation from Sony Corporation. On October 11, 2007, SFH listed its common
stock on the First Section of the Tokyo Stock Exchange, by publicly offering its shares to Japanese and overseas
investors, resulting in Sony Corporation’s ownerships to account for 60% of the total outstanding shares of SFH.
As of March 31, 2013, Sony Financial Group included as direct subsidiaries Sony Life, Sony Assurance and Sony
Bank and SmartLink Network, Inc., subsidiaries of Sony Bank. It also includes AEGON Sony Life Insurance Co., Ltd.
(AEGON Sony Life Insurance) and SA Reinsurance Ltd., as affiliated companies accounted for under the equity
method.
 Sony Financial Holdings Inc. (Management control of its subsidiaries and all duties incidental to that role)[Directly Held, indirectly held subsidiaries and affiliated companies accounted for under the equity method]<Life insurance business> Sony Life Insurance Co., Ltd. (Wholly-owned by SFH)
 AEGON Sony Life Insurance Co., Ltd. (50%-owned by Sony Life)
 SA Reinsurance Ltd. (50%-owned by Sony Life)<Non-life insurance business> Sony Assurance Inc. (Wholly-owned by SFH)
<Banking business> Sony Bank Inc. (Wholly-owned by SFH)
 SmartLink Network, Inc. (57% -owned by Sony Bank)[Organizational chart] (As of March 31, 2013)
Sony
Corporation

Sony Financial
Holdings Inc.

<Life insurance business>
Sony Life InsuranceCo., Ltd.

<Life insurance
business>
AEGON Sony Life
Insurance Co., Ltd.

<Non-life insurance business>

Sony Assurance Inc.

<Life insurance
business>
SA Reinsurance
Ltd.

<Banking business>
Sony Bank Inc.

<Banking
business>
SmartLink
Network, Inc.

Consolidated subsidiaries

Trade name and trademark licenseManagement control fee

Affiliated companies
accounted for under theequity method

Sales and referrals of
the other’s products

Shareholding

7III. Management Policies
1. Company’s Basic Management Policies
The Sony Financial Group positions its corporate vision and philosophy as the basic policy for setting management
strategy and expediting management decision-making. The Group’s corporate vision and philosophies are described
below.
a. Corporate Vision
The Sony Financial Group seeks to become the most highly trusted financial services group by customers. To thisend, the Sony Financial Group will combine many different financial functions (savings, investment, borrowing, andprotection) to provide high-value-added financial products and high-quality services that meet every customer’s
financial needs.
b. Corporate Principles
Put the Customer FirstWe will provide financial products and services that satisfy customers by embracing their individual views, to ensurethat we help them lead prosperous lives with financial security.
Give Back to Society
We believe that a special commitment to the public good is demanded of a financial services enterprise. Conscious ofthis, we will realize our vision by upholding the highest ethics and a strong sense of purpose, and thereby give backto society. In addition, we will fulfill our responsibilities as a good corporate citizen and member of society.
Strive for Originality
We will constantly strive to come up with fresh ideas from basic principles as we pursue creativity and innovation,
instead of merely following custom and convention.
Foster an Open Corporate Culture
We believe that every employee’s contribution is important to develop our ideal of a financial services enterprise. We
will thus foster an open corporate culture where employees can freely express their individuality and demonstrate
their abilities to the fullest.

2. Key Management Benchmarks
SFH closely follows the following management benchmarks aiming at raising its corporate value.
■ Consolidated ordinary revenues■ Consolidated ordinary profit■ Consolidated net income■ Consolidated adjusted ROE
Consolidated adjusted ROE is calculated as follows.
Consolidated adjusted ROE = consolidated adjusted profit divided by consolidated adjusted capital
Consolidated adjusted profit is calculated as the sum of the following:
1) Sony Life:The amount of increase in Embedded Value (EV* : adjusted net worth plus value ofexisting business) during the fiscal year plus dividends paid
2) Sony Assurance: The net income plus provision for catastrophe reserve and its provision for reserve for pricefluctuations, in each case after taxes
3) Sony Bank:
Net income
Consolidated adjusted capital is calculated as the sum of the following:
1) Sony Life:
EV* as of the beginning of the fiscal year less dividends paid plus EV* as of the end of
the fiscal year, divided by two
2) Sony Assurance: The average amount of net assets plus the sum of catastrophe reserve and its reserve for83) Sony Bank:

price fluctuations, in each case after taxes
The average amount of net assets*Sony Life discloses Market Consistent Embedded Value (“MCEV”). Sony Life’s MCEV is calculated in compliancewith the European Insurance Chief Financial Officer (CFO) Forum Market Consistent Embedded Value Principles©
(“MCEV Principles”), the international standard in disclosing MCEV published by the CFO Forum comprised of CFOs
from major insurance companies in Europe.
Consolidated adjusted profit and consolidated adjusted capital take into consideration dividends from the Group subsidiaries and otherspecial factors.

3. Medium- to Long-Term Management Strategies
The Sony Financial Group aims to maximize the corporate value of the Group over the medium to long term byimplementing the management strategies outlined below.
(a) Sustainable and Stable Growth of Group Companies
Sony Life:
Sony Life provides detailed tailored consulting and follow-up services through life insurance
professionals—Lifeplanner sales employees and Partners (independent agencies)—who havebroad-ranging expertise and extensive experience in such areas as economics, finance andtaxation. Sony Life strives to strengthen its capabilities and hone its competitive edge in theindividual life insurance market by providing value in a way that only Sony Life can.
Sony Assurance: Capitalizing on the strengths of its position as a direct insurance provider that communicateswith each of its customers directly via the Internet and the telephone, Sony Assurance precisely
understands customer opinions and needs, and provides products and services from a customer
viewpoint. Sony Assurance aims to increase its income from insurance premiums by offering
reasonably priced insurance premiums realized by risk-segmented products and operational
efficiency.
Sony Bank:
Sony Bank is an Internet bank focused on the needs of individual customers. By maximizing
information technologies, the bank works to provide fair and highly convenient financial
products and services. By ensuring its trustworthiness in such ways, the bank is working to
expand its operations further.
(b) Fostering Synergy among Group Companies
In addition to the growth of each company within the Group, we seek to enhance synergies among the companiesof the Sony Financial Group. Such efforts include the joint offering of products and services, the sharing of
distribution channels and infrastructure and other forms of collaboration. By increasing intra-group synergies, SFH
aims to offer customers attractive and high-value-added products and services that are unmatched by conventional
financial institutions.
(c) Expanding into New Business Fields, Outside the Existing Framework
Through the growth of Group companies and increased synergies within the Group, we aim to move beyond theexisting framework of the Sony Financial Group. We are examining active advancements into new business fields
that will raise our corporate value even further.

4. Tasks Ahead for the Company
In the fiscal year ending March 31, 2014, signs indicate that the Japanese economy will recover, backed by the
introduction of quantitative and qualitative monetary easing measures by the Bank of Japan to pull the economy outof deflation. However, ongoing caution is needed with respect to the impact of the European debt crisis on the global
economy, the Chinese economy and Sino-Japanese relations, as well as the future directions of the Abe

9administration’s economic and fiscal policies. Accordingly, the outlook for the operating environment remains
uncertain.
Regardless, the insurance and banking industries must serve their role in providing proper and stable financial
services, while consistently executing growth strategies.
The Sony Financial Group seeks to become the financial services group that is most highly trusted by customers. To
this end, the Group has redoubled its internal control efforts focused on compliance, risk management, eradicating
anti-social influences and ensuring the protection of personal information. The Sony Financial Group has also
explored its ideal of providing financial services for individual customers from various perspectives. We are working
to realize our vision and achieve ongoing increases in corporate value by executing the above management strategies.
At the same time, we identify our social role and mission as a financial institution as contributing to the realization ofa sustainable society. We will fulfill our responsibilities to our stakeholders accordingly.

10

Ⅳ. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2012

As of March 31, 2013

Cash and due from banks¥118,877\104,142

Call loans and bills bought

66,300107,088

Monetary trusts

303,058

324,305

AssetsSecurities

5,531,585

6,202,333

Loans

975,032

1,115,330

Tangible fixed assets

75,16973,217

Land

31,46931,089Buildings

41,906

39,696

Leased assets

208

302

Construction in progress－

672

Other tangible fixed assets

1,585

1,456

Intangible fixed assets

36,63638,232

Software35,66137,944

Goodwill

839

258

Other intangible fixed assets

135

29

Due from reinsurers

79

110

Foreign exchanges

8,936

7,954

Other assets

92,416

107,345

Deferred tax assets

34,171

17,980

Customers'liabilities for acceptances and guarantees

1,000

－

Reserve for possible loan losses(1,848)(1,877)¥7,241,414\8,096,164

Total Assets

11

(Millions of yen)
As of March 31, 2012

As of March 31, 2013

¥4,963,025\5,601,060

48,23353,246

4,910,669

5,543,540

4,122

4,273

Due to agencies

1,664

2,431

Due to reinsurers

647

600

1,760,853

1,857,302

Call money and bills sold

10,00010,000Borrowed money

2,000

2,000

Foreign exchanges

35

87

Bonds payable

10,00020,000

Other liabilities

93,563

106,365

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

Deposits

Reserve for employees'bonuses

2,944

3,085

Reserve for employees'retirement benefits

21,547

24,216

Reserve for directors'retirement benefits

354

411

25,38632,34425,38032,344

6－

Deferred tax liabilities－

275

Deferred tax liabilities on land revaluation

589

536

1,000

－

6,893,613

7,660,719

Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

98,677135,160

313,854

350,337

36,94988,329Special reserves
Reserve for price fluctuations
Reserve for financial products transaction liabilities

Acceptances and guarantees
Total Liabilities
Net Assets

Total shareholders'equity
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes(2,414)(3,047)

Land revaluation, net of taxes(1,395)(1,513)(453)－

32,68583,767

Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests

1,260

1,339

Total Net Assets

347,800

435,444¥7,241,414¥8,096,164

Total Liabilities and Net Assets

122. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the year ended
March 31, 2013

For the year ended
March 31, 2012
Ordinary Revenues¥1,078,070¥1,259,041

965,555

1,140,184

815,382925,075

813,930

923,672

1,452

1,402

133,670

199,549

Interest income and dividends

97,649108,153

Income from monetary trusts, net

5,278

5,259

Gains on sale of securities

7,592

2,522

Other investment income

12

13

23,137

83,601

16,501

15,55980,09484,711

79,172

83,615

79,141

83,582

Ordinary Revenues from the Life Insurance Business
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income

Gains on separate accounts, net
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums

31

33

873

1,021

Interest income and dividends

874

1,027

Gains on sale of securities

23

26

Gains on redemption of securities

6

－

(31)

(33)

48

74

32,42034,145Investment income

Transfer to interest and dividends on deposits of premiums
Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

24,871

25,954

Interest income on loans

13,27013,877

Interest income and dividends on securities

11,54012,007

Interest income on call loans and bills bought

13

13Interest income on deposits with banks

45

55

Other interest income

10Fees and commissions

4,752

5,260

Other operating income

2,740

2,815

1,764

1,874

976

940

56

114

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

13

(Millions of yen)
For the year ended
March 31, 2013

For the year ended
March 31, 2012
Ordinary Expenses
Ordinary Expenses from the Life Insurance BusinessInsurance claims and other payments
Insurance claims¥1,003,444¥1,179,789

898,925

1,069,007

287,451

293,938

69,002

71,065

Annuity payments

8,577

9,571

Insurance benefits

42,20946,809

Surrender payments

163,274

161,873

2,302

2,649

Other payments
Reinsurance premiums
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders'dividends

2,085

1,968

471,593

630,575－

607

471,576

629,955

17

12

Investment expenses

14,167

11,450Interest expenses

55

43

Losses on sale of securities

2,607

1,587

Devaluation losses on securities

1,692

327

Losses on derivatives, net－

226

Foreign exchange losses, net

1,373

1,253

2

21

Provision for reserve for possible loan losses
Depreciation of real estate for rent and others

2,257

2,000

Other investment expenses

6,178

5,990

Operating expenses

105,324

108,849

Other ordinary expenses

20,38824,192

Ordinary Expenses from the Non-life Insurance Business

76,67481,704

Underwriting expenses

57,673

61,401

Net losses paid

45,03247,153

Loss adjustment expenses

5,081

5,656

Net commission and brokerage fees

972

945

Provision for reserve for outstanding losses

3,287

4,407

Provision for underwriting reserves

3,298

3,238

0

0

Other underwriting expenses
Investment expenses

47

Losses on sale of securities

03

Losses on redemption of securities

4

3

18,91820,27977

16

Operating, general and administrative expenses
Other ordinary expenses(Continued)

14

(Millions of yen)
For the year ended
March 31, 2013

For the year ended
March 31, 2012
Ordinary Expenses from the Banking Business¥27,844¥29,077

8,798

7,811

6,879

6,296

Interest expenses on call money and bills sold

10

10Interest on borrowed money

95

86

Interest expenses on bonds

23

61

1,784

1,355

4

0

Interest expenses
Interest expenses on deposits

Interest expenses on interest rate swaps
Other interest expenses
Fees and commissions

1,416

1,546

Other operating expenses

735

2,568

16,322

16,760571

389

74,62579,252

99－

Gains on disposal of fixed assets

0－

Reversal of reserve for employees' retirement benefits

99－

General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains

Extraordinary Losses

9,073

9,257

Losses on disposal of fixed assets

77

113

Impairment losses

274

962

8,568

6,964

Provision for special reserves
Provision for reserve for price fluctuations

8,568

6,964

Loss on sales of shares of subsidiaries and affiliates

－

1,216

Others

153

0

958

2,104

Income Before Income Taxes

64,69367,890

Income Taxes

31,86722,746- Current

28,361

29,366- Deferred

3,505△6,62032,82545,14313

78¥32,812¥45,064

Provision for Reserve for Policyholders'Dividends

Income Before Minority Interests
Minority interests in income
Net Income152. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the year ended
March 31, 2013

For the year ended
March 31, 2012
Income Before Minority Interests¥32,825¥45,143

Net unrealized gains on other securities, net of taxes

28,422

51,381

Net deferred losses on hedging instruments, net of taxes

(855)

(633)

Land revaluation, net of taxes

103

(118)

Foreign currency translation adjustments

(122)

453

1

(1)

27,55051,08260,37696,225Comprehensive income attributable to parent company

60,362

96,146Comprehensive income attributable to minority interests

13

78

Other comprehensive income

Share of other comprehensive income of affiliates accounted
for using equity method
Total other comprehensive income
Comprehensive income(Details)

16

3. Consolidated Statements of Changes in Net Assets(Millions of yen)
For the year ended
March 31, 2012

For the year ended
March 31, 2013

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

¥19,900¥19,900－－

19,90019,900195,277

195,277

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

195,277

195,277

74,56598,677

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

32,81245,064－

118

Balance at the end of the current period
Retained earnings
Balance at the beginning of the fiscal year
Changes during the period

Reversal of land revaluation
Total changes during the period

24,112

36,482

Balance at the end of the current period

98,677135,160

289,742

313,854

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

32,81245,064－118

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

Reversal of land revaluation
Total changes during the period

24,112

36,482

Balance at the end of the current period

313,854

350,337

8,525

36,949Net changes of items other than shareholders'equity

28,424

51,380Total changes during the period

28,424

51,380

Balance at the end of the current period

36,94988,329Total accumulated other comprehensive income
Net unrealized gains on other securities, net of taxes
Balance at the beginning of the fiscal year
Changes during the period(Continued)

17

(Millions of yen)
For the year ended
March 31, 2012

For the year ended
March 31, 2013

Net deferred losses on hedging instruments, net of taxes
Balance at the beginning of the fiscal year¥(1,558)¥(2,414)

(855)

(633)

Changes during the period
Net changes of items other than shareholders'equity
Total changes during the period

(855)

(633)

Balance at the end of the current period(2,414)(3,047)(1,499)(1,395)

Net changes of items other than shareholders'equity

103

(118)

Total changes during the period

103

(118)

Balance at the end of the current period(1,395)(1,513)

(331)

(453)

Net changes of items other than shareholders'equity

(122)

453

Total changes during the period

(122)

453

Balance at the end of the current period

(453)

－

5,135

32,685

Net changes of items other than shareholders'equity

27,55051,082

Total changes during the period

27,55051,082

Balance at the end of the current period

32,68583,767－

1,260

Net changes of items other than shareholders'equity

1,260

78

Total changes during the period

1,260

78

Balance at the end of the current period

1,260

1,339

294,877

347,800

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

32,81245,064－

118

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

Foreign currency translation adjustments
Balance at the beginning of the fiscal year
Changes during the period

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

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

Total Net Assets
Balance at the beginning of the fiscal year
Changes during the period

Reversal of land revaluation
Net changes of items other than shareholders'equity

28,811

51,161

Total changes during the period

52,92387,643

Balance at the end of the current period¥347,800¥435,444

18

4. Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2012

For the year ended
March 31, 2013

Cash flows from operating activities
Income before income taxes¥64,693\67,890

Depreciation of real estate for rent and others

2,257

2,000

Depreciation and amortization

6,032

7,784

274

962

Impairment losses
Amortization of goodwill

560

580

Increase (decrease) in reserve for outstanding claims

(930)

5,015

474,875

633,193

17

12

958

2,104

Increase in policy reserve
Increase in interest portion of reserve for policyholders'
dividends
Increase (decrease) in reserve for policyholders' dividends
Increase in reserve for possible loan losses

274

28

Increase in reserve for employees' retirement benefits

3,088

2,913

Increase (decrease) in reserve for directors' retirement benefits

(87)

57

Increase (decrease) in reserve for price fluctuations

8,568

6,964

Increase in reserve for financial products transaction liabilities

10Interest income and dividends(123,395)(135,136)(Gains) losses on securities(36,774)(87,294)

Interest expenses

8,853

7,855

Exchange losses

5,355(35,508)

78

69

1,179

1,718

Net increase in loans(113,103)(134,664)

Net increase in deposits

Losses on disposal of tangible fixed assets
Equity in losses of affiliates

111,022

96,408Net (increase) decrease in foreign exchange (assets)

(503)

981

Net increase (decrease) in foreign exchange (liabilities)

18

51

Others, net

28,26927,437

Subtotal

441,584

471,428

Interest and dividends received

132,119

146,015Interest paid

(9,192)(8,330)

Policyholders' dividends paid

(1,692)(1,966)

Income taxes paid

(38,554)(26,264)

Net cash provided by operating activities

524,264

580,882(Continued)

19

(Millions of yen)
For the year ended
March 31, 2013

For the year ended
March 31, 2012
Cash flows from investing activities
Investments in monetary trusts¥(500)\(4,942)

Proceeds from sale of monetary trusts

6,000

5,300

(1,037,882)(973,738)

Purchases of securities
Proceeds from sale and redemption of securities

563,557

462,518

Investments in loans(48,888)(47,927)

Collections of loans

23,333

21,144－(53)(494,379)(537,698)

29,884

43,184(955)(1,599)0－Purchases of intangible fixed assets
Proceeds from purchase of investments in subsidiaries resulting
in change in scope of consolidation
Proceeds from sales of investments in subsidiaries resulting inchange in scope of consolidation
Purchase of securities of a subsidiary(14,880)(11,869)

346

－

－

1,035

－

(30)

Payments for transfer of business(2,328)－(1)

2(512,198)(550,159)

Proceeds from issuance of bonds

9,962

9,965

Cash dividends paid

(8,696)(8,697)

Balance from securitization of lease receivables

550(6,500)

Others

(33)

214

1,782

(5,017)(0)

47

OthersTotal of net cash used in investment transactions
Total of net cash provided by (used in) operating activities andinvestment transactions
Purchases of tangible fixed assets
Proceeds from sale of tangible fixed assets

OthersNet cash used in investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

13,84825,752

Cash and cash equivalents at beginning of the fiscal year

161,803

175,651

Cash and cash equivalents at end of the fiscal year

¥175,651\201,404

Note: Cash flows from investing activities include cash flows from lending operations of the insurance business.

20

5. Notes to the Consolidated Financial Statements
1) Changes in scope of consolidation during the period under review
Sony Bank Securities Inc. has been excluded from the scope of consolidation during the fiscal year, owing to the transfer of allshares in the company by SFH’s banking subsidiary (Sony Bank Inc.).Sony Life Insurance (Philippines) Corporation has been
excluded from the scope of consolidation during the fiscal year, owing to the transfer of all shares in the company by
SFH’s life insurance subsidiary (Sony Life Insurance Co., Ltd.).

2) Changes in accounting policies which are difficult to distinguish from changes in accounting estimates(Changes in method of depreciation for Tangible fixed assets)
In the past, SFH and its domestic consolidated subsidiaries used the declining-balance method to depreciate certain of their
tangible fixed assets. However, to ensure consistency with SFH’s parent company, this has been changed to the straight-line
method, beginning in the fiscal year ended March 31, 2013. Consequently, during the fiscal year depreciation and amortization anddepreciation of real estate for rent and others were each ¥422 million lower, and ordinary profit and income before income taxes
were ¥422 million higher than they would have been under the previous method.

3) Segment Information
For the year ended March 31, 2012
(1) Outline of reporting segments
The SFH Group's reporting segments are components of the Group whose operating results are regularly reviewed by the
Board of Directors to make decisions about resources to be allocated to the segments and assess their performance, forwhich discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank Inc., andpursues financial group strategies. The subsidiaries make their own business plans and engage in business activities fromwhich they may earn revenues and incur expenses, under the Insurance Business Law of Japan, the Banking Law of Japan,
and other regulations.
The SFH Group consists of three reporting segments: the life insurance business, the non-life insurance businessand the banking business.
● The life insurance business consists of Sony Life Insurance Co., Ltd., Sony Life Insurance (Philippines)
Corporation, AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd.
● The non-life insurance business consists of Sony Assurance Inc.
● The banking business consists of Sony Bank Inc., Sony Bank Securities Inc. and SmartLink Network, Inc.
(2) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andintangible fixed assets

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥965,555
2,027
967,582
68,187
5,219,990¥80,0941
80,096
2,859
118,612¥32,420
133
32,553
3,463
1,897,694¥1,078,070
2,162
1,080,232
74,5097,236,297

5,567

1,033

1,822

8,422

98,071
55873－

24,871
8,825

123,816
8,880(1,179)
9,718

－
－

－
－

(1,179)9,718¥9,081¥4,256¥2,722¥16,060

21

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts

Totals of reporting segments
Adjustments for intersegment transactions
Ordinary revenues in statement of income

Millions of yen
For the year ended
March 31, 2012
¥1,080,232(2,162)¥1,078,070

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income

Millions of yen
For the year ended
March 31, 2012
¥74,50910
106¥74,625

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Assets in balance sheets

Millions of yen
For the year ended
March 31, 2012
¥7,236,297(11,116)
16,233¥7,241,414

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

Millions of yen
For the year ended March 31, 2012
Consolidated
Total
Adjustments
financialstatements¥8,422¥7¥8,430123,816(421)
123,395
8,880
(27)
8,853
－
(1,179)(1,179)
－
9,718
9,718
¥16,06022¥27¥16,088

For the year ended March 31, 2013
(1) Outline of reporting segments
The SFH Group's reporting segments are components of the Group whose operating results are regularly reviewed by the
Board of Directors to make decisions about resources to be allocated to the segments and assess their performance, forwhich discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank Inc., andpursues financial group strategies. The subsidiaries make their own business plans and engage in business activities fromwhich they may earn revenues and incur expenses, under the Insurance Business Law of Japan, the Banking Law of Japan,
and other regulations.
The SFH Group consists of three reporting segments: the life insurance business, the non-life insurance businessand the banking business.
● The life insurance business consists of Sony Life Insurance Co., Ltd., AEGON Sony Life Insurance Co., Ltd.
and SA Reinsurance Ltd.
● The non-life insurance business consists of Sony Assurance Inc.
● The banking business consists of Sony Bank Inc. and SmartLink Network, Inc.
(2) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andintangible fixed assets

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥1,140,184
2,213
1,142,397
72,7705,948,190¥84,7110
84,711
2,371
127,421¥34,145
183
34,3293,953
2,012,627¥1,259,041
2,396
1,261,438
79,095
8,088,238

6,265

1,697

2,082

10,046108,614
43

1,027
－

25,954
7,886

135,596
7,930(1,718)
7,830

－
－

－
－

(1,718)
7,830¥6,322¥3,174¥2,729¥12,227

23

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts

Totals of reporting segments
Adjustments for intersegment transactions
Ordinary revenues in statement of income

Millions of yen
For the year ended
March 31, 2013
¥1,261,438(2,396)¥1,259,041

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income

Millions of yen
For the year ended
March 31, 2013
¥79,095
7
149¥79,252

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Assets in balance sheets

Millions of yen
For the year ended
March 31, 2013¥8,088,238(20,978)
28,903¥8,096,164

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

Millions of yen
For the year ended March 31, 2013
Consolidated
Total
Adjustments
financialstatements¥10,046¥8¥10,054
135,596(460)
135,136
7,930
(74)
7,855
－
(1,718)(1,718)
－
7,830
7,830
¥12,22724¥4¥12,231

Relative information
For the year ended March 31, 2012
1. Information by business segment
Life insurance
business
Ordinary revenues from
External customers¥965,555

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥80,094¥32,420

Total¥1,078,070

2. Geographic segment information(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers inJapan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.
For the year ended March 31, 2013
1. Information by business segment
Life insurance
business
Ordinary revenues from
External customers¥1,140,184

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥84,711¥34,145

Total¥1,259,041

2. Geographic segment information(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers inJapan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.

25

Information on impairment losses on fixed assets by business segment
For the year ended March 31, 2012
No significant items to be reported.
For the year ended March 31, 2013

Millions of yen
Reporting segments

Life insurance
business¥962

Impairment losses

Non-life
insurancebusiness－

Bankingbusiness

OthersConsolidated

Total
¥962

－

－

¥962

Information on amortization of goodwill and unamortized balance by business segment
For the year ended March 31, 2012
Millions of yen
Reporting segments
OthersConsolidated

Life insurance
business

Non-life
insurancebusiness

－

－

¥560

¥560

－

¥560

－

－

¥839

¥839

－

¥839

Amortization of
goodwill
Balance at end of
periodBankingbusiness

Total

For the year ended March 31, 2013
Millions of yen
Reporting segments
OthersConsolidated

Life insurance
business

Non-life
insurancebusiness

－

－

¥580

¥580

－

¥580

－

－

¥258

¥258

－

¥258

Amortization of
goodwill
Balance at end of
periodInformation on negative goodwill by business segment
For the year ended March 31, 2012
No significant items to be reported.
For the year ended March 31, 2013
No significant items to be reported.

26

Bankingbusiness

Total4) Financial Instruments
Fair value information on financial instruments
Below is fair value information on financial instruments as of March 31, 2013, excluding securities whose fair values are notreadily determinable.
Financial assets
Millions of yen
As of March 31, 2013

Cash and due from banks
Call loans and bills bought
Monetary trusts
Monetary trusts for trading
purposes
Other monetary trusts
Securities
Trading securities
Held-to-maturity securities
Available-for-sale securities
Loans
Reserve for possible loan
losses*Total Financial Assets

Consolidatedbalance sheet
amount¥104,142
107,088

Fair value

Difference¥104,142
107,088

－
－

442

442

－

323,862

323,862－

527,787
3,956,120
1,686,076
1,115,330

527,787
4,514,661
1,686,076－
558,540－

1,214,326¥8,478,386

100,418¥658,958(1,422)
1,113,908¥7,819,427* Excludes general and specific reserves for possible loan losses.
Financial liabilities
Millions of yen
As of March 31, 2013

Deposits
Call money and bills soldBonds payable
Total Financial Liabilities

Consolidatedbalance sheet
amount¥1,857,302
10,00020,000¥1,887,302

Fair value¥1,858,948
10,00020,112¥1,889,060

Difference¥1,646－112¥1,758Derivative financial instruments
Millions of yen
As of March 31, 2013

Hedge accounting not applied*
Hedge accounting applied
Total Derivative Financial
Instruments

Consolidatedbalance sheet
amount¥(171)(12,675)

Fair value¥(12,846)

Difference¥(171)(12,675)－－¥(12,846)－* Figures are totals resulting from derivatives transactions, which are accounted for as other assets and liabilities on the
consolidated balance sheets. If the total is a debt amount, the above figure is negative.

27

Calculation of the fair value of financial instruments
Financial Assets
Cash and due from banks, call loans and bills bought
The fair value is regarded as the carrying amount, as they are approximately equal.
Monetary trusts
In individual monetary trusts mainly for investment purposes, the fair value of bonds is the market price on financial
instrument exchanges or the price indicated by a financial institution. Please see“investment in monetary trust,”whichindicates fair values by purpose.
Securities
The fair value of stocks is the market price on stock market or financial instrument exchanges. The fair value of bonds
and investment funds is the market price or the price indicated by a financial institution. Please see“investment insecurities,”which indicates fair values by purpose.
Loans(i) Loans in the banking business
The value of these loans is calculated by estimating their future cash flows and then applying a prescribed discountrate. The discount rate is determined by adding to the Libor-based yield curve a risk premium corresponding to theallowance rate on the general provision for loan losses.
(ii) Policy loans in the life insurance business
Policyholder loans are valued by discounting future cash flows to their current value.
Financial Liabilities
Deposits
The value of deposits is calculated by type, by estimating their future cash flows and then applying a prescribed discountrate. The discount rate is determined by adding to the Libor-based yield curve a premium corresponding to the banking
subsidiary's cumulative default rate by rating.
Call money and bills sold
The fair value is regarded as the carrying amount, as they are approximately equal.
Bonds payable
The fair value of bonds payable is the market price on bond and other markets.

28

Derivative Transactions
Please see“derivative financial instruments,”which indicates calculations of fair value.
Securities whose fair values are not readily determinable
Millions of yen
As of March 31, 2013
Non-consolidated subsidiaries and affiliates¥7,938that are unlisted*1
Japanese stocks that are not listed on the4stock market*1
24,406
Investment in partnership*2¥32,349
Total*1. Unlisted stocks have no market prices and fair values are not readily determinable.
*2. Assets included in“investment in partnership”are stocks in unlisted companies.
Note: Impairment losses on investment in partnership was recognized as ¥34 million for the year ended March 31, 2013.
Impairment losses are principally recorded when their fair value as of the end of the fiscal year has declined by 50% ormore from the acquisition cost.
The future redemption schedule of monetary claims and securities with maturities

1 year or less
Cash and due from banks
Call loans and bills bought
Securities
Held-to-maturity securities
Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
OthersAvailable-for-sale securities
Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
OthersLoans*
Total¥104,142
107,088

Millions of yen
As of March 31, 2013
More than 1
More than 5
year to 5 years
years to 10 years－－－－

Over 10 years
－
－

5,049

¥20,030¥31,124¥3,889,229

3,751

18,16628,0233,811,310

998
300
166,562

1,864－
517,4742,901
200
245,274

22,91955,000616,900

30,401

101,778

144,077

616,850

40,206
95,955
16,717¥399,559

107,068
308,627
78,536¥616,042

60,12941,06853,945¥330,345

50－
820,807¥5,326,936* This figure excludes loans of ¥145,019 million that have no fixed redemption period such as policyholder loans.

The future return schedule of deposits and other liabilities with interest

1 yearor less
Deposits*
Call money and bills soldBonds payable
Total¥1,779,125
10,000－¥1,789,125

More than
1 yearto 2 years¥18,221－－¥18,221*Demand deposits are included in“1 year or less.”

29

Millions of yen
As of March 31, 2013
More than More than
2 years
3 years
to 3 years
to 4 years¥16,661¥3,356－－－
10,000¥16,661¥13,356

More than
4 years
to 5 years¥2,840－10,000¥12,840

More than
5 years¥37,095－－¥37,095

5) Investments in Securities
Trading securities
Millions of yen
For the year ended
March 31,2013
Valuation losses
charged to income¥70,801
Held-to-maturity securities
Millions of yen
As of March 31, 2013
Fair values exceeding the consolidatedbalance sheet amount
Consolidated
Gross
Consolidatedbalance sheet unrealized
Fair valuebalance sheet
amountgains
amount
Bonds
Japanese government
and municipal bonds
Japanese corporate
bonds
Others
Total

Total
Net
unrealized
gains

Fair value¥3,883,367¥546,047¥4,429,415

－

－

－

28,914

3,574

32,488－－－43,838¥3,956,120

8,919¥558,540

52,757¥4,514,661－¥3,956,120－¥558,540－¥4,514,661

Note: There were no fair values that did not exceed their consolidated balance sheet amounts.

Available-for-sale securities
Millions of yen
As of March 31, 2013
Fair values exceeding the acquisition cost Fair values not exceeding the acquisition cost
Consolidated
Gross
Consolidated
Gross
Acquisition
Acquisition
balance sheet unrealizedbalance sheet unrealized
cost
cost
amountgains
amountlosses
Bonds
Japanese government
and municipal bonds
Japanese corporate
bonds
Equity securities
Others
Total

Consolidatedbalance sheet
amountTotal
Net
unrealized
gains

Acquisition
cost¥930,231¥79,335¥850,896¥50,770¥(464)¥51,235－－－

206,060

2,713

203,347

6,103

(53)

6,157

－

－

－

18,394
378,134¥1,532,821

6,803
13,104¥101,956

11,591365,029¥1,430,864

3,850
92,528¥153,254(47)(1,657)¥(2,223)

3,898
94,186¥155,477－－¥1,686,076－－¥99,733－－¥1,586,342

Note: This chart as of March 31, 2013, excludes ¥４ million in unlisted stocks and an investment in partnership of ¥24,406 million (consolidated balance sheet
amounts).

30

Available-for-sale securities sold during the period

Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
Equity securities
Others
Total

Millions of yen
For the year ended March 31, 2013
Sales
Gains on sales
Losses on sales¥22,954

¥168

¥82

389
15,64863,243¥102,235

6
2,003
1,165
¥3,3433
380
1,228¥1,695

Impairment of available-for-sale securities:
Available-for-sale securities with market value are considered impaired if the market value decreases materially below theacquisition cost and such decline is considered non-recoverable. The market value is recognized as the consolidated balance
sheet amount and the write-down is accounted for as a devaluation loss for the fiscal year.
Impairment losses on available-for-sale securities were recognized as ¥327 million for the year ended March 31, 2013.
“Material decline”is indicated when the market value is 30% or less than the acquisition cost.

316) Investments in Monetary Trusts
Monetary trusts for trading purposes
Millions of yen
As of March 31, 2013
Consolidated balance
Valuation gains
sheet amountcharged to income¥－¥442
Other monetary trusts

Other monetary trusts

Consolidatedbalance sheet
amount¥323,862

Millions of yen
As of March 31, 2013
Gross
Gross
unrealized
unrealized
gains
losses－¥38,206

Acquisitioncost¥285,656

Note: Jointly invested monetary trusts included in the table above amount to ¥50 million for the year ended March 31, 2013.

Impairment of other monetary trusts
Securities with market values that are included in monetary trusts for purposes other than trading, holding to maturity or policy
reserve matching are considered impaired if their market value decreases materially below the acquisition cost and suchdecline is considered non-recoverable. Their market value is recognized as the consolidated balance sheet amount and thewrite-down is accounted for as a devaluation loss for the fiscal year.
No impairment loss was recognized for the year ended March 31, 2013.
“Material decline”is indicated when the market value is 30% or less than the acquisition cost.

327) Derivative Financial Instruments(1) Hedge accounting not applied
Below is a summary of contractual or notional amounts, current market or fair values, valuation gains or losses, and themethod of calculating the fair values of derivatives, classified by transaction, to which hedge accounting is not applied.
Notional amounts do not indicate exposure to credit loss.
(i) Interest rate derivatives

Over-the-counter transactions
Interest rate swaps
Total

Millions of yen
As of March 31, 2013
Notional amountOver
Fair value
Total
1 year¥－－¥20,000－

Valuation
losses¥(119)¥(119)¥(119)¥(119)

Notes:
1. The above transactions are valued at market, and valuation losses are recorded in the consolidated statements of income.
2. Market value is calculated using discounted present value.

(ii) Currency derivatives

Over-the-counter transactions:
Forward foreign exchanges:
Sold
BoughtForeign exchange margintransactions
Sold
BoughtCurrency options
Sold
Currency forward contracts
BoughtTotal

Millions of yen
As of March 31, 2013
Notional amountOver
Fair value
Total
1 yearValuation
gains (losses)¥46,40791,703

－
－

¥(55)
(297)

¥(55)
(297)

47,646
10,587

－
－

(619)
916

(619)
916

1,036

－

(6)

7

7,559
－

－
－

10
¥(52)

10
¥(37)

Notes:
1. The above transactions are valued at market, and valuation gains and losses are recorded in the consolidated statements of income.
2. Market values are calculated using discounted present value, option pricing models and other methods.

33

(2) Hedge accounting applied
The following provides a summary of contractual or notional amounts, current market or fair values, valuation gains orlosses, and the method of calculating the fair values of derivatives, classified by transactions, to which hedge accounting isapplied. Notional amounts do not indicate exposure to credit loss.
(i) Interest rate derivatives

Deferred hedge accounting
Interest rate swaps
Fair value hedge accounting
Interest rate swaps
Total

Notional amount
Over
Total
1 yearMillions of yen
As of March 31, 2013
Fair value

Hedged item

¥79,195¥74,491¥(2,811) Loans

378,446－

332,030－(19,225) Available-for-sale securities (bonds)¥(22,036)

Notes:
1. SFH applies deferred hedge accounting and fair value hedge accounting in accordance with“Accounting and Auditing Treatments on Application of
Accounting Standard for Financial Instruments in the Banking Industry”(Industry Audit Committee of Japanese Institute of Certified Public
Accountants No. 24).
2. Market value is calculated using discounted present value.

(ii) Currency derivatives
Notional amountOver
1 yearMillions of yen
As of March 31, 2013

Total
Fair value hedge accounting
Currency swaps
Total¥45,300－¥3,500－Notes:
1. SFH applies mainly fair value hedge accounting.
2. Market value is calculated mainly using discounted present value and other methods.

8) Subsequent Events
There were no applicable subsequent events.

34

Fair value

Hedged item

¥9,361 Available-for-sale securities (bonds)¥9,361

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
Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, Sony Bank Securities Inc., andSmartLink Network, Inc. It also includes AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., asaffiliated companies accounted for under the equity method. Sony Bank Securities Inc. and Sony Life
Insurance (Philippines) Corporation were out of the scope of consolidation from August 1, 2012 and December
6, 2012, respectively and thereafter.
On May 9, 2013, Sony Corporation announced its consolidated financial results for the year ended March 31,
2013 (April 1, 2012, to March 31, 2013). Sony Financial Group companies constitute the majority of Sony
Group’s Financial Services segment. However, the scope of Sony Group’s Financial Services segment differsfrom the scope of SFH’s consolidated results. For the scope of Sony Group’s Financial Services segment,
please refer to the May 9, 2013, news release by Sony Corporation.
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

35

IV. Attachment
Content of Presentation Material

Consolidated Financial Results for the Year Ended March 31, 2013 andSony Life’s Preliminary Market Consistent Embedded Value as of March 31, 2013
・Consolidated Operating Results for the Year Ended March 31, 2013・・・・・・・・・・・・・・Consolidated Financial Forecast for the Year Ending March 31, 2014・・・・・・・・・・・
・Dividend Policies・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Sony Life’s Preliminary MCEV as of March 31, 2013 and Risk Amount Based on Economic
Value ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Sony Life’s ALM and Asset Management・・・・・・・・・・・・・・・・・・・・・Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

36

3
28
30
32
34
37

Presentation Material

Consolidated Financial Results for theYear Ended March 31
31, 2013
andS
SonyLife’sif ’ Preliminary
P li iMarket Consistent Embedded Value
As of March 31, 2013
Sonyy Financial Holdings
g Inc.
May 20, 2013
1

Content
 Consolidated Operating Results for the Year Ended March 31, 2013

P.3

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

P.28
P 28

 Dividend Policies

P.30

 SonyS
LifLife’s’ Preliminary
P li iMCEV as off MarchM
h 31,
31 2013 and
d Ri
Risk
kA
Amountt

Based on Economic Value

P.32

 Sony Life’s ALM and Asset Management

P.34

 Appendix

P37

Disclaimers:
This presentation material 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,”p , “forecast,”, “predict,”p, and “possibility”py that describe future operatingpg activities,, business p
performance,, events or conditions.
“expect,”
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 anduncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements.
Consequently, investors are cautioned not to place undue reliance on forward-looking statements. The 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 thispresentation 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 in connection with any contract or commitment
whatsoever.

2Consolidated Operating Results for
the Year Ended March 31,, 2013

3

Management Review
FY2012 Results and FY2013 Forecast (Consolidated) During FY2012, we maintained stable and sustainable business growth in all the businesses: life
insurance, non-life insurance and banking. In addition, thanks to the market recovery, we posted
increases in revenues and profit year on year, which exceeded our previous forecast announced on
February 2013.
 For FY2013 forecast, stable and sustainable business growth is expected, however, both revenues
and profit are expected to decrease year on year. This is because we do not expect such increases
in revenues and profit due to the market recovery as recorded in FY2012. We also anticipate anegative impact resulting from the revision of discount rate used for calculating policy reserves.
 Without the above mentioned factors
factors, we expect stable increases in revenues and profit in FY2013
FY2013.

Sony Life’s MCEV During FY2012
FY2012, Sony Life
Life’ss MCEV steadily increased due to an increase in policies in force
force, aswell as reducing the impact of lower interest rates, based on Sony Life’s ALM initiatives. Risk
amount is also fully controlled within a low level of MCEV.

Return
R t
tto ShShareholders
h ld We plan to pay a year-end dividend of ¥25 per share for FY2012, up ¥5 from FY2011.
We will continue to return profits to shareholders through steadily increasing dividends.
 At this moment,
moment we plan to pay a year
year-end
end dividend of ¥25 per share for FY2013
FY2013, unchanged from
FY2012.
4

Highlights of Consolidated Operating Performancefor the Year Ended March 31, 2013 (1)Ordinary revenues

Ordinary profit

1,259.0
1,078.0+16.8%

6.2%(Billions of yen)

ChangeOrdinary revenues

967.5

1,142.3+174.8+18.1%

Ordinary profit

68.1

72.7

+4.5

+6.7%

Non-life
Insurance
Business

Ordinary revenues

80.0

84.7

+4.6

+5.8%

Ordinary profit

28
2.8

23
2.3

(0 4)
(0.4)

(17 1%)(17.1%)

Ordinary revenues

32.5

34.3

+1.7

+5.5%

Ordinary profit

3.4

3.9

+0.4

+14.2%

Ordinary revenues

(2.1)

(2.3)

(0.2)

－

Ordinary profit

0.1

0.1

+0.0

+35.0%

1,078.0

1,259.0+180.9+16.8%

Ordinary profit

74.6

79.2

+4.6

+6.2%

Net income

32.8

45.0

+12.2

+37.3%

Intersegment
Adjustments*

74.6

Ordinary revenues
Consolidated

FY2011FY2012Life
Insurance
Business

Banking
Business

79.2

FY2011FY2012(Billions of yen)(Billions of yen)

Consolidated

12 3 3112.3.31

13 3 3113.3.31

Change from 1212.3.31
3 31

Total assets

7,241.4

8,096.1+854.7+11.8%Net assets

347.8

435.4

+87.6

+25.2%*Amounts in ordinary profit in the “Intersegment
Intersegment adjustments”
adjustments are mainly from SFH
SFH.
*Comprehensive income: FY2011: ¥60.3 billion, FY2012: ¥96.2 billion
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

5

Highlights of Consolidated Operating Performancefor the Year Ended March 31, 2013 (2)<YonY comparison> Life insurance business: Ordinary revenues increased year on year due mainly to a significant increase inincome from insurance premiums associated with steady growth in policy amount in force, and aniincrease
iin investmentitt incomeion separatet accountst d
due tto theth market
k t recovery. Ordinary
O diprofitfit
increased due primarily to a reversal of policy reserves for minimum guarantees for variable life insurance
and a recovery from negative spread into positive at Sony Life. These positive factors surpassed thecompany’s negative effects stemming from recording higher profit in the previous fiscal year due to thereversall off reserve forf outstandingt t di claims
l irelatedl t d tto th
the GGreatt E
Eastt JJapan E
Earthquake.
thk Non-life insurance business: Ordinary revenues increased year on year, owing to an increase in net

premiums written, as the number of insurance policies in force grew primarily for its mainstay automobilepdecreased yearyon yyear owing
g mainlyy to highergp
provision of reserve for
insurance. Ordinaryy profit
outstanding losses, although net loss ratio remained at the same levels.
 Banking business: Ordinary revenues increased year on year due to an increase in interest income onloans led by the growing balance of mortgage loans and an increase in net fees and commissions
resulting from Sony Bank’s
Bank s July 2011 acquisition of SmartLink Network,
Network Inc.,
Inc which became its
consolidated subsidiary. Ordinary profit increased year on year due mainly to the increase in profit related
to mortgage loan business.
Consolidated ordinary revenues increased 16.8% compared with the previous fiscal year, to ¥1,259.0
billion, owing to increases in ordinary revenues from all the businesses
billionbusinesses. Consolidated ordinary profit
increased 6.2% year on year, to ¥79.2 billion. By business segment, ordinary profit from the life insurance
business and the banking business increased, whereas ordinary profit from the non-life insurance
business decreased year on year. Consolidated net income increased 37.3% year on year, to ¥45.0
billion reflecting the previous fiscal year’s
billion,year s increase in deferred income taxes owing to the partial reversalof deferred tax assets associated with the reduction in the corporate tax rate.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

6

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

FY2011FY2012967.4

1,142.2+174.8

Income from insurance premiums

816.1

925.8

+109.7+13.5%

Investment income

133.9

199.8

+65.8

+49.2%

Interest income and dividends

97.9

108.5

+10.5

+10.8%

Income from monetary trusts, net

5.2

5.2

(0.0)

(0.4%)

Gains on sale of securities

7.5

2.4

(5.1)

(68.0%)(Billions of yen)

Ordinary profit
Ordinary revenues

1,142.2
967.4+18.1%

74.6
69.4

FY2011

23.1

83.6

+60.4

+261.3%

1,067.6+169.6+18.9%

Insurance claims and other payments

287.4

293.9

+6.4

+2.3%

y reserves and others
Provision for policy

471.5

630.5

+158.9+33.7%

Investment expenses

Ordinary expenses

14.3

11.6

(2.6)

(18.7%)

Losses on sale of securities

2.6

1.5

(1.0)

(39.1%)

Losses on separate accounts, net

1.6

0.3

(1.3)

(80.7%)

105 4
105.4

109 0
109.0

+3 5
+3.5

+3 4%
+3.4%

Ordinary profit

69.4

74.6

+5.2

+7.5%

Net income

31.4

42.4

+11.0

+35.1%FY2012(Billions of yen)

◆ Ordinary revenues and ordinary profit increased year on year.
◆ Income from insurance premiums significantly increased due to
steady growth in policy amount in force.
◆ Investment income increased year on year, reflecting an
increase in investment income on separate accounts due tothe market recovery .
◆Ordinary profit increased due primarily to a reversal of policy
reserves for minimum guarantees for variable life insurance
and a recovery from negative spread into positive at Sony Life.
These positive factors surpassed the company’s negative
effects stemming from recording higher profit in theprevious fiscal year due to the reversal of reserve foroutstanding claims related to the Great East Japan Earthquake.

+18.1%

897.9

Gains on separate accounts, net+7.5%

ChangeOperating expenses

12.3.3113.3.31

Securities

4,545.0

5,211.5+666.5+14.7%

Policy reserves

4,843.0

5,472.9+629.9+13.0%

Total net assets

264.8

342.3

+77.4

+29.3%

34.0

80.2

+46.2

+135.9%5,222.8

5,952.7+729.9+14.0%

444.2

550.6

+106.3+23.9%(Billions of yen)

Net unrealized gains on other securities

Total assets

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

Separate account assets

Change from 12.3.31

7

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

FY2011FY2012

New policy amount

4,203.3

4,454.6

Change<Reasons for change>+6.0%◆ Increased due to much higher
sales of living benefit insurance
and whole life insurance.

p and surrender amountLapse

2,056.2,

1,911.9,((7.0%))

Lapse and surrender rate

5.93%

5.31%

(0.62pt)

Policy amount in force

36,077.0

37,779.0+4.7%

Annualized premiums from new policies

70.8

73.2

+3.4%

Of which, third-sector products

17.1

18.3

+7.6%

635.4

669.9

+5.4%

148.9

158.6

+6.5%

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

FY2011
Gains from investment, net (general account)

FY2012

Change

96.4

104.5

+8.4%

Core profit

71.6

80.0

+11.7%

Positive (Negative)() spread

(1 )
(1.5)

21
2.1

－

Non-consolidated solvency margin ratio

12.3.3113.3.31

Changefrom
12.3.311,980.4%

2,281.8%+301.4pt

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 the total of individual life
insurance and individual annuities.
*2
2.The
The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders
surrenders, not adjusted for policy
amount decreases, increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.
*3. The plus amount in negative spread indicates positive spread.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

◆ Decreased due mainly to term-life
insurance.
◆ IncreasedI
d due
d tto muchh hihigherhsales of living benefit insurance,
whole life insurance and term life
insurance.
◆ IncreasedI
d due
d tto an increaseiiininterest income and dividends
despite lower gains on sale ofsecurities.
◆ Increased due primarily to areversal of policy reserves forminimum guarantees for variable
life insurance and a recovery fromnegative spread into positive at
Sony Life.
Life
These positive factors surpassed
the company’s negative effects
stemming from recording higher
profit in the previous fiscal year
due to the reversal of reserve foroutstanding claims related to theGreat East Japan Earthquake.

8

Sony Life Operating Performance (1)Annualized Premiums from New Policies

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

Number of new policies

Annualized premiums from insurance in force

Of which, third-sector(Thousands of policies)

599(Trillions of yen)

700

620

+4.9%

591

(Billions of yen)

80

71.2

600

5.0

4.19

4.20

40
4.0

70

4.45
500

73 2
73.2

70.8
+3.4%

60

+6.0%
6 0%
400

3.0
300

50
40
30

2.0

200

+7.6%

20
1.0

100

0

0

FY2010FY2011FY2012

10

16.6

17.1

18.3

FY2010FY2011FY20120

Li itemLineitamounts
t are truncated
t
t db
below
l
¥100 million;
illi
percentage change figures are rounded.

Li itemLineitamounts
t are truncatedtt d belowb l¥10 billion;
billi
numbersb
off policies
li i aretruncated below 1,000 policies; percentage change figures are rounded.

9Sony Life Operating Performance (2)Annualized Premiums from Insurance in Force

Number and Amount of Policies in Force(Individual Life Insurance + Individual Annuities)

Policy amount in force(Individual Life Insurance + Individual Annuities ）Number of policies in force

Annualized premiums from insurance in force

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

50

5.34
40

34.7

5 67
5.67

+6.5%
6.5%

(Billions of yen)

6.04

700

6

36.0

37.7

600

604.7

669.9

635.4
+5.4%

5
500

+4.7 %

4

30

400

3
20
2
10

0
2011.3.31

2012.3.31

300
200

1

100

0

0

2013.3.31

140 7
140.7

148 9
148.9

2011.3.31

2012.3.31

+6.5%
6 %

158 6
158.6

2013.3.31

Line itemLi
itamounts
t are ttruncated
t db
below
l
¥100 billion;
billi
numbersb
off policies
li i aretruncated below 10,000 policies; percentage change figures are rounded.
Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

10

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

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

925.8

1,000

( )
(％)

770.3

800

8

6.41

5.93

(0.62pt)

6

5.31

816.1
+13.5 %

600

4

400

2

200

0

0

FY2010FY2011FY2010FY2012*The lapse and surrender rate shows the ratio derived by dividing theamount of lapses and surrenders, not adjusted for policy amount decreases,
increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.

FY2011FY2012

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

11

Sony Life Operating Performance (4)Ordinary Profit

Core Profit(Billions of yen)

80.0

80

(Billions of yen)

71.6
80

+11.7%

60

73.1

56.2

74 6
74.6
69.4
+7.5%

60

40
40

20
20

0
FY2010FY2011FY2012(Reference)
Provision of policy reserves for minimum guarantees for variable life insurance
in the general account assets(Billions of yen)

FY2010FY2012FY2011
5.0

2.8

(1.3)

0
FY2010FY2011FY2012

Y on Y Change(4.1)

Note: Negative amount in provision of policy reserves for minimum guarantees for variable life
insurance indicate reversal of reserve for policy reserves.

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

12

Sony Life Operating Performance (5)Average Assumed Interest Rate andInvestment Yield for Core Profit

Negative Spread(Billions of yen)

3.00%

5
4

Average assumed interest rate
Investment yield for core profit

2.1

3
2

2.43%

1

2.35%

0
-1
-2

2.26%

(1.5)

-3

2.31%

2.31%

2.27%

2.00%

-4
-5
-6
-7

(6.3)

-8
-9
9
-10
-11

1.00%

-12

FY2010FY2011FY2010FY2012FY2011FY2012* The plus amount in negative spread indicates positive spread.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

13

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

4,500

4,066
[49]

4,026
[51]

4,023
[62]

3,996
[66]

4,116
[71]

4,098
[79]

+3

4,071
[82]

4,119
[91]

4,031
[87]

,
4,000

+88
88

3,500

3,000
0

11.3.3111.6.30

11.9.30

11.12.31

12.3.3112.6.30

12.9.30

12.12.31

13.3.31

Note:
N
t Fi
Figures iin [] showhththe numberb off Lifeplanner
Lif l
sales
l employeesl((rehired
hi d on a fifixed-term
dtcontractt t basisb i after
ftretirement) included in the overall numbers, those who have reached retirement age but who continue to work
as Lifeplanner sales employees that meet certain sales conditions and other requirements.
* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

14

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

13.3.3112.3.31(Billions of yen)Amount%Japanese government
andd corporatet bondsb d

3 975 7
3,975.7

83 2%
83.2%

4,561.0

84.4%

Japanese stocks

45.0

0.9%

31.1

0.6%

Foreign
g securities

59.6

1.2%

62.0

1.1%

Foreign stocks

30.5

0.6%

25.4

0.5%

Monetary trusts

288.2

6.0%

306.1

5.7%

Policy loans

138.7

2.9%

145.0

2.7%

Real estate

72.9

1.5%

70.3

1.3%

Cash and call loans

64.8

1.4%

103.3

1.9%

Others

102.6

2.1%

97.7

1.8%

4,778.5

100.0%

5,402.1

100.0%

Total

Amount%On the asset side, we lengthened theduration of securities held to match theliability characteristics of insurance policies
with long-term maturities with the aim of
reducing interest rate risk.
Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds
in FY12[Lengthened asset duration]
11.3.31 18.5 year
12. 3.31 19.2 year
13.3.31 19.9 year
■Investment in the monetary trusts is mainly into
Japanese government and corporate bonds.
■The holding ratio on the real status, of Japanese
government and corporate bonds including
those invested in monetary trusts in the generalaccount assets: As of Mar. 31, 2013: 90.1%((As of Mar. 31,, 2012: 89.2%))
Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

15

Sony Life Operating Performance (8)Non-consolidated Solvency Margin Ratio
(%)

3,000
+301.4pt

2,500
2,000

,
1,720.0

2,281.8

1,980.4

1,500
1,000
500
0
11.3.3112.3.3113.3.31

Note: The non-consolidated
non consolidated solvency margin ratios are calculated based on the current
standards applied from the end of fiscal 2011 (March 31, 2012).

16

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

80.0

84.7

+4.6

+5.8%

Underwriting income

79.1

83.6

+4.4

+5.6%

Investment income

0.8

1.0

+0.1

+17.0%

77.2

82.3

+5.1

+6.6%

Underwriting expenses

58.0

61.8

+3.7

+6.5%

Investment expenses

0.0

0.0

+0.0

+70.6%

Operating general andOperating,administrative expenses

19.0

20.4

+1.4

+7.3%

Ordinary profit

2.8

2.3

(0.4)

(17.1%)Net income

1.2

1.4

+0.1

+11.9%

Ordinaryy expensesp

2.3(17.1%)FY2011FY2012(Billions of yen)

◆ Ordinary revenues increased but ordinary profit
decreased year on year.
◆ Ordinary revenues increased year on year,
owing to an increase in net premiums written, as
th numbertheb off insuranceipolicies
li i iin fforce grew
primarily for automobile insurance.
◆ Ordinary profit decreased year on year owing
mainly to higher provision of reserve foroutstanding losses, although net loss ratio
remained at the same levels.

Change80.0

Ordinary revenues

+5.8%

2.8

FY2012FY2011(Billions of yen)

84.7

(Billions of yen)

13.3.3112.3.31

Change from
12.3.31

Underwriting reserves

67.3

70.6

+3.2

+4.8%

Total net assets

18.0

19.9

+1.9

+10.7%

Total assets

118.6

127.4

+8.8

+7.4%

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

17

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

FY2011FY2012

ChangeDirect premiums written

78.3

82.5

+5.4%

Net premiums written

79.1

83.5

+5.6%

Net losses paid

45 0
45.0

47 1
47.1

+4 7%
+4.7%

Underwriting profit

2.1

1.3

(33.7%)Net loss ratio

63.3%

63.2%

(0.1pt)Net expense ratio

25 7%
25.7%

26 0%
26.0%

+0 3pt+0.3ptCombines ratio

89.0%

89.2%

+0.2pt◆ Increased owing to an increase in thenumber of policies in force for
automobile insurance.
◆ Increased owing mainly to aniincrease
iin ththe numberb off insuranceipayments due to the higher number ofpolicies in force for automobile
insurance.
◆ Increased owing mainly to increases
in the system-related expenses,
personnel expenses and insurance
acquisition cost for new policies.

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

12.3.3113.3.31

Change from 12.3.31

Number of p
policies in force

1 49 million
1.49

1.55 million+0.05 million

Non-consolidated solvency
margin ratio

557.8%

504.2%+4.0%◆ Increased due to an increase in
the number of policies in force
for automobile insurance.

(53.6pt)

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; number of policies aretruncated below 10,000 policies; percentage change figures are rounded.

18

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

Net Premiums Written

FY2011FY2012

Change

Fire

176

236

+34.1%

Marine－－－Personal accident*

7,424

7,898

+6.4%

Personal accident*

Voluntary automobile

70,712

74,406+5.2%

Voluntary automobile

－

－

－

78 31378,31382 54182,541+5.4%
5 4%(Millions of yen)Compulsory
automobile liability
Total((Millions of yen)
y )

Fire
MarineCompulsory
automobile liability
Total

Net Losses paid
FY2012

Change
g

Fire

40

1

(97.3%)

Marine138

185+33.8%

Personal accident*

1,796

1,957

+9.0%

Voluntary automobile

42,19344,004

+4.3%

862

1,004

+16.5%

45,03247,153+4.7%

Compulsory
automobile liabilityy
Total

FY201272

86+19.3%

90142+56.9%

7,626
,

8,138
,

+6.7%

70,457

74,140

+5.2%

893

1,075

+20.3%

79,141

83,582+5.6%

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

FY2011(Millions of yen)

FY2011

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

19

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force
V l
Voluntary
automobile
bil iinsurance
Others

Personal accident insurance

Number of policies in force(Billions of yen)

1.49

100

+4.0%

1 38
1.38
80

73.3

Ordinary Profit

1.55(Millions of policies)(Billions of yen)

83.5

79.1

1.6 3.0
1.4

2.3
2.1

1.2

+5.6 %

1

60

2.8(17.1%)

20
2.0

0.8
40

0.6

1.0

0.4

20

02
0.2
0

0
FY2010FY2011FY2012The 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.

0.0
FY2010FY2011FY2012

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

20

Sony Assurance Operating Performance (2)Combines Ratio(Net Loss Ratio + Net Expense Ratio)

Earned/Incurred Loss Ratio+ Net Expense Ratio
Earned/Incurred loss ratio
(%)

100

95.2

<Reference>

Net expense ratio

Net loss ratio

98.9

98.1

(%)

100

85.6

+0.8pt

69.7

72.9

72.4

+0.2pt63.3

60+0.5pt

89.2

89 0
89.0

80

80

60

Net expense ratio

63.2

60.0
(0.1pt)

40

40

20

25.5

25.7

FY2010FY2011+0.3pt

20

26.0

25.5

25.7

FY2010FY2011+0.3pt26.0

00FY2012

Notes:
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for outstanding
losses + Loss adjustment expenses) / Earned premiums.
[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]

FY2012

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

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

800

631.0%

557.8%

504 2%
504.2%( 53.6pt)

400

011.3.3112.3.3113.3.31

Note: The non-consolidated
non consolidated solvency margin ratios are calculated based on the current
standards applied from the end of fiscal 2011 (March 31, 2012).

22

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

32.5

+5.5%

+12.4%<Consolidated>

34.3

4.4

(Billions of yen)

FY2011FY2012

Consolidated ordinary revenues

32.5

34.3

+1.7

+5.5%

Consolidated ordinary profit

3.9

4.4

+0.4

+12.4%

Consolidated net income

1.7

3.2

+1.5

+87.6%<Non-consolidated>
FY2011FY2012

Ordinary revenues

30.0

31.3

+1.2

+4.2%

Gross operating profit

18.3

18.5

+0.1

+1.0%

Net interest income

16.1

18.1

+2.0

+12.5%Net fees and commissions

0.1

0.1

(0.0)

(38.1%)Net other operating income

2.0

0.2

(1.7)

(86.2%)

General and administrative
expenses

13.8

13.9

+0.1

+1.1%

Net operating profit

4.3

4.5

+0.1

+4.5%

Ordinary profit

4.0

4.2

+0.2

+6.2%

Net income

2.3

0.8

(1.4)

(62.4%)

12.3.3113.3.31

62.7

67.8

+5.0

+8.0%

1.7

6.5

+4.7

+269.9%1,890.5

2,005.0+114.5+6.1%(Billions of yen)39
3.9

FY2011

ChangeFY2012(Billions of yen)<Consolidated>◆ Consolidated ordinary revenues increased year on year due toan increase in interest income on loans led by the growing
balance of mortgage loans and an increase in net fees andcommissions resulting from Sony Bank’s acquisition of SmartLink
Network, Inc., which became its consolidated subsidiary.
Consolidated ordinary profit increased year on year due mainly to
an increase in profit related to mortgage loan business.
Consolidated net income increased due to recording deferred tax
assets on the sale of Sony Bank Securities on August 1, 2012.
<Non-consolidated>◆ Gross operating profit slightly increased year on year.
Net interest income increased owing to an increase in interest-Netincome on loans led by a growing balance of mortgage loans
and a decrease in interest expenses.
-Net fees and commissions slightly decreased as Sony Bank
stopped charging FX transaction, despite higher gains on fees
and commissions related to mortgage loan business.
pg income decreased reflecting
g lower ggains-Net other operating
on bond dealing transactions.
◆ Net income decreased owing to recording extraordinary losses(¥2.7 billion) on the sale of Sony Bank Securities Inc.

(Billions of yen)

Total net assets
Net unrealized gains on othersecurities (net of taxes)

Total assets

Changeg

Change from
12.3.31

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

23

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)<Reasons for changes>
Change from
12.3.3112.3.3113.3.31

Customer assets

1,864.3

1,974.3+110.0+5.9%

Deposits

1,762.2

1,857.4

+95.1

+5.4%

Yen

1,390.5

1,467.2

+76.6
76.6

+5.5%
5.5%

371.7

390.2

+18.5

+5.0%

102.0

116.9

+14.9

+14.6%

Loans outstanding

835 5
835.5

970 2
970.2

+134 6+134.6+16 1%+16.1%

Mortgage loans

749.6

860.3

+110.6+14.8%(Billions of yen)

Foreign currency
Investment trusts

OthersN b off accounts
Numbert(10 thousand)Non-performing assets
ratio(Based on Financial *2
Reconstruction Law)

Capital adequacy ratio *3(domestic criteria)
Tier 1 ratio

*1

85.9

109.8

+23.9

+27.9%

89

92

+2

+3.3%

0.44%

0.41%

(0.03pt)

11.58%

11.98%+0.40pt

9.63%

8.85%

(0.78pt)*1 Loans in others include corporate loans of ¥103.3 billion.
*2 Balance of problem assets based on the Financial Reconstruction Law / Total credit exposure*3 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P27.

◆ Yen deposits increased due to thepositive effect of special offer forsummer 2012 bonus season,, andshifting customer assets from foreign
currencies to yen deposits backed byyen depreciation after the end of
December 2012.
◆ Foreign currency deposits increased
reflecting a positive impact from foreignexchange conversion (+ ¥50.1 billion),
despite a negative impact fromconverting more foreign currencies into
yen ledl db
by yen d
depreciationi ti after
ft thethend of December 2012.
◆ Loan balance increased due to a
growing balance of mortgage loans, inaddition to a higher corporate loanbalance centered on syndicated loans.
◆ Non-performing assets ratio was kept
at an extremely low level.
◆ In February 2013, Sony Bank borrowed
funds from SFH as subordinated loan
to reinforce its financial base. The Tier
1 ratio was also kept at a high level.
Line item amounts are truncated below ¥100 million;
numbers of accounts are truncated below 10 thousands accounts;
percentage change figures are rounded.

24

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

FY2011FY2012

18 3
18.3

18 5
18.5

+0 1
+0.1

+1 0%
+1.0%

16.9

17.6

+0.6

+4.1%

Gross operating profit
Net interest income*1①<Reference> Interest Spread(Managerial Accounting Basis)

ChangeNet fees and commissions*2 ②

1.1

1.0

(0.1)

(14.2%)Net other operatingg income*3

0.1((0.1))((0.3))―

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

18.1

18.6

+0.5

+2.9%

Operating expenses and otherexpenses ③

13.9

13.9

(0.0)

(0.1%)Net operating profit (core profit)＝(A)－③

4.1

4.6

+0.5

+13.0%■ 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 inforeign currency transactions recorded in net other operating income.
3: Net other operating income: After the above adjustments (*1 and *2), consists ofprofits and losses for bond and derivative dealing transactions.

Yield on investment

Yield on financing

Interest spread

(%)

2

1.5

1 36
1.36

1

0.94

0.5

0.41

0.35

FY2011FY2012

1.27(0.02pt)

0.92

0Note: Interest spread=(Yield on investment)-(Yield on financing)■ Core basis
Profits and losses exclude net other operating income,income which includes those on bondand derivative dealing transactions, and stands for Sony Bank’s basic profits.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.
The calculation method on a managerial accounting basis was partly changed from this fiscal year . Accordingly, the figures for FY2011 were retroactively calculated.

25

Operating Performance:
Sony Bank (Non-consolidated) (1)Loans

Deposits
Yen depositspMortgageg g loans

Foreign currency deposits

Others970.2(Billions of yen)

1,000(Billions of yen)

1,857.4

2,000

1,649.1

1,762.2
+95.1

109.8

835 5
835.5
800

*Corporate loansof ¥103.3 billion.

+134.6

722.4

390.2

1,500

600

860.3
1,000

400

500

1,467.2200

0011.3.3112.3.3113.3.3111.3.3112.3.3113.3.31

Line item amounts are truncated below ¥100 million

26

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

Balance of Securities by Credit ratingsAAA
BBB(Domestic criteria)

Capital adequacy ratio

AA
A
OthersTier1 ratio

(%)

15

(Billions of yen)

1,200

1,000

940.1

912.9

10.84

908.8
10
(4 0)
(4.0)

800

600

11.58

10.41

9.63

+0 40 ptt
+0.40

11.98

8 85
8.85
(0.78 pt)

<Reference>

5400

In February 2013
Sony Bank borrowed funds (¥10.0 billion)
from SFH as subordinated loan to reinforce
its financial base.

200
011.3.310
11 3 3111.3.31

12 3 3112.3.31

13 3 3113.3.3112.3.3113.3.31*Calculated based on the standard FSA*CS 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.

Line item amounts are truncated below ¥100 million.

27

Consolidated Financial Forecast
for the Year Ending March 31, 201428

Consolidated Financial Forecast
for the Year Ending March 31, 2014
■ FY2013 Consolidated Financial Forecast(Billions of yen)

FY2013

FY2012

Change(Forecast)(Actual)Consolidated 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

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

(17.8%)(0.9%)■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 ¥1 million; percentage change figures are rounded.

29

Dividend Policies

30

Dividend Policies
We plan to pay a year-end dividend of ¥25 per share for FY2012, up ¥5 from FY2011.
(total dividend amount: ¥10.875 billion)<Mid-term Dividend Policy>
 We aim for steady increases in dividends in line with earnings growth over the medium and longterm, while securing sufficient internal reserves to ensure the financial soundness of the Group
companies
i andd iinvestt iin growing
i fifields.
ld
 Our mid-term target for the dividend payout ratio is 30% to 40% of consolidated net income.
 Management will determine specific dividend amounts for each fiscal year by taking into account acomprehensive range of factors,
factors including the capital adequacy of each Group company relative torisk, investment opportunities, business forecasts and legal and regulatory developments worldwide.
■ Consolidated Net Income and Dividend Result/Forecast
FY2010FY2011FY2012FY2013(Forecast)

¥20

¥20

¥25

¥25

Annual dividend amount¥8.7 billion¥8.7 billion

10.875 billion¥10.875 billion

Consolidated net income¥41.7 billion¥32.8 billion¥45.0 billion¥37.0 billion

20 9%
20.9%

26 5%
26.5%

24 1%
24.1%

29 4%
29.4%

Dividend per share

Dividend payout ratio(consolidated)Line item amounts are truncated below ¥100 million.

31

Sony Life
Life’ss Preliminary MCEV
as of March 31, 2013,
andRisk Amount Based on Economic Value

32

Sony Life’s Preliminary MCEV as of March 31, 2013,
and Risk Amount Based on Economic Value(Billions of yen)

13.3.3112.3.31

MCEV

Change from 12.3.31

1,041.5

1,064.7+23.2

Adjusted net worth

409.2

770.8

+361.7

Value of existing business

632.4

293.9

(338.5)

Of which,which new business value

65 2
65.2

41 6
41.6

(23 6)(23.6)

 MCEV steadily increased through Sony Life’s efforts to increase policy amount in force and reduce a negative
impact of lower interest rates with its ALM initiatives. This is because an increase in adjusted net worth led by arise in price of ultralong-term JGBs held for ALM purpose, was enough to offset a decrease in value of existing
business resulting from lower interest rates in the ultralong term.
term New business value and new business margin(*) were ¥41.6 billion and 3.5% as of March 31, 2013, down comparedwith ¥65.2 billion and 6.4% as of March 31, 2012, due mainly to lower interest rates in the ultralong term.
(*) New business margin equals new business value divided by present value of premium income.
(Billions of yen)

The risk amount based on economic value

12.3.31551.5

13.3.31661.3

Change from 12.3.31+109.8 The risk amount based on economic value increased due to business expansion and lower interest rates in
the ultralong term, however, it was fully controlled within a low level of MCEV in terms of solvency.
Note1: The risk amount based on economic value refers to the total amount of Sony Life’s risks, comprehensively examined and including
insurance risk and market-related risk.
Note2: 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 isa 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. The calculation of MCEV as of March 31, 2013,in accordance with the MCEV principles and verified by outside specialists, is scheduled to be announced on May 27, 2013.

33

Sony
So
y Life’se s ALM anda d Asset
sset Managementa age e t

34

Result of Sony Life’s ALM Initiatives
MCEV steadily increased by controlling interest rate risk with
ALM initiatives, along
g with a steadyy acquisition of new policies(Billions of yen)

Value of existing business
30-year interest rate

Adjusted net worth
40-year interest rate

2 500 02,500.0

2,000.0

2 50%
2.50%

(38bp)(45bp)(47bp)(41bp)

1,500.0

1,000.0

816.5

1,064.7
1.00%(415.6)
400.9

500.0

00
0.0

1.50%

+23.2
1,041.5

08.3.31

2.00%

09.3.310.50%

12.3.3113.3.31

0 00%
0.00%

35

Sony Life’s Asset Management Policy
No change in asset management policy, even after monetary easing～Investing
Investing most of new money in ultralongultralong-term
term JGBs
JGBs～

Sony Life’s Basic Policy on Risk Preferences Aims for stable and sustainable business growth in corporate value by
aggressively increasing policies in force and underwriting insurance risk, while
maintaining sufficient solvency based on economic value.
 Prioritizes investment in assets that match insurance liabilityy characteristics to
reduce interest rate risk pertaining to liabilities of insurance policies with longterm maturities, with the aim of securing corporate value of life insurance
business.

Impact of and Response to Monetary Easing Maintains a sufficient level of solvency based on economic value, though interest
rate sensitivity
y has risen and the amount of interest rate risk has increased due
to a decline in ultralong-term interest rates.
 Continues to invest in ultralong-term JGBs while monitoring market trends, withthe aim of reducing interest rate risk along with an acquisition of new policies
though interest rates are expected to be persistently low.
36

Appendix

37

Recent Topics 1
AEGON SONY LIFE INSURWNCE 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 (9*) *As of May 20, 2013
Financial Highlights for FY2012: Number of new policies: 7,357, New policy amount: ¥51.1 billion(As of Mar. 31, 2013): Number of policies in force: 10,232, Policy amount in force: ¥76.1billion
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 March 31, 2013
Sony Life accounts for 22% of the amount of new mortgage loans for FY12*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 FY12
* Sony Life started handling automobile insurance in May 2001
2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

38

Recent Topics 2<Highlight for FY2012>2012-5-16
2012-7-27
2012-8-01

Sony Life launched the first phase of its “Co-Creation Project”
Sony Assurance began providing smartphone applications designed to assist drivers to be conscious of theimportance of safe driving, to solve problems when troubled and to get estimates and apply for automobile
insurance via smartphone. Sony Assurance is the first Japanese automobile insurance provider to offer
these smartphone applications and services.
Sony Bank transferred all Sony Bank securities’ shares to Monex Group with the aim of enhancing financial
products intermediary services through strengthening business alliance with Monex Group.
Group

2012-10-11

Sony Assurance added a GPS system to its free application, “Trouble Navigation” for smart phone users

2012-10-19

Sony Life launched the second phase of its “Co-Creation Project”

2012-10-22

Sony Bank began offering Chinese HongKong (CNH), South African Rand and Swedish Krona for foreign
currency deposits
Sony Assurance revised automobile insurance details including a discount on paperless insurance policies
and establishing a new rider, commencing on or after November 1, 2012
Sony Bank reduced exchange transaction fees for its all twelve foreign currency deposits and revised
preferential system
Sony Life transferred the business of Sony Life Insurance (Philippines) Corporation

2012-11-01
2012-12-01
2012-12-06
2013-1-14

2013-5-01

Sony bank launched new financial products intermediary services with Monex GroupSony Financial Holdings issued No. 2 unsecured corporate bonds(The bonds were raised as a subordinated loan aimed at reinforcing Sony Bank’s financial base on February
1. 2013)
Sony Life revised insurance premium rates on some products in line with the reduction in discount rate used
for calculating policy reserves.
Sonyy Life transferred the business of LIPLA Co.,, Ltd.

2013-5-02

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

2013-1-31
2013-4-02

39

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)

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.

40

Sony Life’s Interest Income and Dividends (Details)

FY2012FY2011(Millions of yen)

ChangeCash and deposits
Japanese governmentand corporate bonds
Japanese stocks

00(6.8%)

77,182

87,634+13.5%

869

536(38.4%)

Foreign securities

2,908

3,746

+28.8%

Other securities

285

251

(12.0%)

Loans

5 367
5,367

5 450
5,450

+1 5%
+1.5%

Real estate

11,241

10,854(3.4%)

Others10567(36.0%)

Total

97,960108,539+10.8%

Line item amounts are truncated below ¥1 million

41

Sony Life’s Quarter trend on New Policies Amount
Quarter (3M) trend on New Policies Amount(Billions of yen)

New policy amount

1,200.0
1,065.3
1,000.0

1,003.0

1 238 7
1 201 9 1,238.7
1,201.9

1,175.4

1,160.8
1,054.4
969.6

997.3

1,066.5
976.1

947.4

800.0
600 0
600.0
400.0
200.0
0.0

FY10 1Q FY10.2Q
FY10.1Q
FY10 2Q FY10.3Q
FY10 3Q FY10.4Q
FY10 4Q FY11.1Q
FY11 1Q FY11.2Q
FY11 2Q FY11.3Q
FY11 3Q FY11.4Q
FY11 4Q FY12.1Q
FY12 1Q FY12.2Q
FY12 2Q FY12.3Q
FY12 3Q FY12.4Q
FY12 4Q
Line item amounts are truncated below ¥100 million;

42

Sony Life’s Quarter trend on
Annualized Premiums from New Policies
Quarter (3M) trend on Annualized Premiums from of New Policies
Annualized premiums from new policies

Of which, third-sector(Billions of yen)

24.0

22.0

22.0
20.0
18.0

18 1
18.1

19.8

19.0
17.2

16.8

17.1

16.0

19.0
17.6

16.0

17.4
14.6

14.0
12.0
10.0
8.0
6.0
4.0
2.0
00
0.0

4.1

3.8

4.7

4.2

3.9

4.9

3.8

4.0

4.4

5.2

5.0

3.6

FY10.1Q FY10.2Q FY10.3Q FY10.4Q FY11.1Q FY11.2Q FY11.3Q FY11.4Q FY12.1Q FY12.2Q FY12.3Q FY12.4Q
Line item amounts are truncated below ¥100 million;

43

Sony Life’s Policy Amount in Force
Policy Amount in Force/New Policy Amount/ Lapse and Surrender Amount((Trillions of yen)y )Policy amount in f orce (lef t scale)

40.0
31.4

4.1%

30.0

Growth rate (right scale)
36.0
34.7

33.4

32.5

4.7%
3.8%

3 8%
3.8%

3.2%

37.7

4.0%
3.0%

2.9%

20.0

5.0%

2.0%
10.0

0.0

(Trillions of yen) 5.0
4.0

1.0%

FY07

FY08

FY09

FY10
4.1

FY11
4.2

FY12
4.4

3.8

3.8

4.0

(1 8)
(1.8)

(2 1)
(2.1)

(2.3)

(2 1)
(2.1)

(2 0)
(2.0)

(1 9)
(1.9)

0.0%

3.0
20
2.0
1.0
0.0
-1.0
-2.0
-3.0

New policy amount

Lapse and surrender amountLine item amounts are truncated below ¥100 billion

44

Contact:
Corporate Communications & Investor Relations Department
Sony Financial Holdings Inc.
TEL： +81-3-5785-1074
45