Consolidated Financial Summary(Japanese GAAP)
for the Three Months Ended June 30, 2012
August 13, 2012
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Katsumi Ihara, President and Representative Director
Representative:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
Inquiries:(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the three months ended June 30, 2012
(1) Operating results
Ordinary Revenues
Ordinary Profit

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change277,239

8.0

15,424(20.3)

9,613(11.7)

256,810

6.8

19,351(1.1)

10,883

4.9

For the three months
ended June 30, 2012
For the three months
ended June 30, 2011
Note: Comprehensive Income:For the three months ended June 30, 2012: ¥17,714 million:
For the three months ended June 30, 2011: ¥23,423 million:

Net Income per
Share(Fully Diluted)

Net Income per
Share
Yen

For the three months
ended June 30, 2012
For the three months
ended June 30, 2011(24.4)％
16.3％

Yen

22.10

—

25.02

—

(2) Financial conditions
Total Assets
As of June 30, 2012
As of March 31, 2012
Notes: Shareholders'equity:

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

7,365,051

356,8154.8

7,241,414

347,800

4.8

As of June 30, 2012 : ¥355,503 million
As of March 31, 2012: ¥346,540 million

2. Dividends
Dividend per Share

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

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

—

0.00

—

20.00

20.00

—

—

—

—

—

Notes: Prospective dividends for the year ending March 31, 2013, have not yet been determined.

3. Forecast of consolidated financial results for the year ending March 31, 2013
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues
For the year ending
March 31, 2013

Ordinary Profit

Net Income per
Share

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,115,000

3.4

67,000(10.2)

37,000

12.8

Yen

85.06

Notes: SFH previously announced its half-year results forecast. However, we decided to omit this announcement from the fiscal year ending March 31, 2013reflecting the SFH Group's long-term business structure as a financial institution.

4. Notes(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying changes inscope of consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: 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 10-5 of the Ordinance on Terminology, Forms and Preparation Methods of Quarterly Financial Statements, etc., has been applied. For
details, please refer to the section entitled “Changes in accounting policies, accounting estimates and restatements of the consolidated financial
statements” under “2. Notes Regarding Summary Information” on page 4 of the attachment.

(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of June 30, 2012:
As of March 31, 2012:(b) Number of treasury shares
As of June 30, 2012:
As of March 31, 2012:(c) Weighted-average number of shares
For the three months ended June 30, 2012:
For the three months ended June 30, 2011:

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

Status of quarterly review procedures
Quarterly review procedures are completed by PricewaterhouseCoopers Aarata in accordance with Article 193-2-1 of the
Financial Instruments and Exchange Law of Japan. However, quarterly consolidated financial statements in this document are notsubject to such quarterly review procedures.
Explanation for Appropriate Use of Forecasts and Other Notes
Although prospective dividends for the year ending March 31, 2013, have not yet been determined, we will publicly disclose thespecific dividend amount once we have taken into overall consideration such factors as future business environment surrounding theSFH Group.

Content of Supplemental Materials
I.

Qualitative Information and Financial Statements

II.

1.

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

2.

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

3.

Consolidated Financial Forecast for the Year Ending March 31, 2013・・・・・・・・・・・・・・ 3

Notes Regarding Summary Information
Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4

III.

Consolidated Financial Statements
1.

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

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

IV.

3.

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

4.

Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・

11

Attachment
Consolidated Financial Results for the Three Months Ended June 30, 2012 and Sony Life’s

13

Market Consistent Embedded Value as of June 30, 2012

* The Conference Call for explaining the SFH Group financial results will be held at 16:00 (Tokyo),
August 13, 2012.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on August 13, 2012, and its Q&A summary lateron Presentation Materials page on our website.
* On August 13, 2012, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce its financial results for thethree months ended June 30, 2012. SFH prepared an English-language summary of those Japanese
announcements made by above subsidiaries, solely for convenience of non-Japanese readers.
Please see futher details at our website: http://www.sonyfh.co.jp/web/en/financial_info_e/results.html

1

I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
During the three months ended June 30, 2012 (April 1, 2012 through June 30, 2012), consolidated ordinary revenues grew
8.0% compared with the same period of the previous fiscal year, to ¥277.2 billion, owing to increases in ordinary revenues
from the all businesses: life insurance, non-life insurance and banking. However, consolidated ordinary profit decreased
20.3% year on year, to ¥15.4 billion. By business segment, ordinary profit from the all businesses, namely, life insurance,
non-life insurance and banking, decreased year on year.
After accounting for extraordinary losses, reversal of reserve for policyholders’ dividends, income taxes and other items,
consolidated net income for the three months ended June 30, 2012, was down 11.7% year on year, to ¥9.6 billion.

Segment Information by Business< Life insurance business >In the life insurance business, income from insurance premiums increased 12.0% compared with the same period of theprevious fiscal year, to ¥218.0 billion, owing to a steady increase in the policy amount in force. On the other hand, investment
income decreased 4.0% to ¥27.8 billion due to the worse investment performance on separate account assets caused bydeteriorated financial market conditions. As a result, ordinary revenues increased 8.0% year on year, to ¥247.6 billion.
Ordinary revenues increased year on year, whereas ordinary profit decreased 21.9% year on year, to ¥13.7 billion reflecting an
increase in provision for policy reserves related to minimum guarantees for variable life insurance policies. The decrease wasalso due to recording profit for the previous period resulting from lower insurance claims and other payments related to theGreat East Japan Earthquake than we had estimated in the reserve for outstanding claims as of March 31, 2011.

< Non-life insurance business >In the non-life insurance business, net premiums written increased 6.3% compared with the same period of the previous fiscal
year, to ¥21.4 billion, due to growth in the number of insurance policies in force centered on automobile insurance.
Consequently ordinary revenues rose 6.3% year on year, to ¥21.7 billion.
On the other hand, ordinary profit decreased 8.0% year on year, to ¥0.7 billion, owing to an increase in loss ratio due tohigher net losses paid for automobile insurance.
.

< Banking business >In the banking business, ordinary revenues increased 12.4% compared with the same period of the previous fiscal year, to¥8.3 billion, due to an increase in net fees and commissions resulting from Sony Bank’s acquisition of a 57% equity interestin SmartLink Network, Inc. in July 1, 2011 as its consolidated subsidiary. Gross operating profit increased 15.5% year on
year, to ¥5.2 billion, due to an increase in net interest income, bolstered by a growing balance of mortgage loans, as well as
the aforementioned improvement in net fees and commissions resulting from Sony Bank’s acquisition of SmartLink Network,
Inc. General and administrative expenses increased 19.6% year on year, to ¥4.2 billion. As a result, ordinary profit decreased
0.6% year on year, to ¥0.8 billion.
Goodwill amortization of ¥0.1 billion* is included in SFH’s financial results in the banking business, although it is notincluded in Sony Bank’s financial results (consolidated).
* Goodwill arose through SFH’s purchase in March 2008 of shares in Sony Bank held by minority interests, converting Sony Bank toa wholly owned subsidiary. This goodwill is being amortized on a straight-line basis over five years.

2

Ordinary Revenues
For the three months ended
June 30, 2011
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the three months ended
June 30, 2012

Change (%)

229,356
20,4697,445

247,671
21,751
8,371

8.0
6.3
12.4

257,272

277,794

8.0

(462)

(554)

-

256,810277,239

8.0

Ordinary Profit
For the three months ended
June 30, 2011
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments*
Consolidated(Millions of yen)

For the three months ended
June 30, 2012

(Millions of yen)
Change (%)

17,636789
891

13,770725
886(21.9)(8.0)(0.6)

19,31733

15,38241(20.4)
23.1

19,351
15,424*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

(20.3)

2. Qualitative Information on Consolidated Financial Position
As of June 30, 2012, total assets amounted to ¥7,365.0 billion, up 1.7% from March 31, 2012. Among major components ofassets, securities, mostly Japanese government bonds, amounted to ¥5,652.9 billion, up 2.2% from March 31, 2012. Loanscame to ¥1,006.1 billion, up 3.2%, and monetary trusts amounted to ¥307.2 billion, up 1.4%.
Total liabilities were ¥7,008.2 billion, up 1.7% from March 31, 2012. Major components of liabilities included policy
reserves and others of ¥5,072.1 billion, up 2.2%, and deposits totaled ¥1,766.1 billion, up 0.3%.
Total net assets were ¥356.8 billion, up 2.6% from March 31, 2012. This included net unrealized gains on other securities,
net of taxes, which increased ¥8.3 billion, to ¥45.3 billion due mainly to a rise in bond price brought by a decline in interest
rates.

3. Consolidated Financial Forecast for the Year Ending March 31, 2013
SFH’s forecast of consolidated financial results for the fiscal year ending March 31, 2013 (April 1, 2012, through March 31,2013), is unchanged from the forecast announced on May 10, 2012.

3

Ⅱ. Notes Regarding Summary Information
Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(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 first quarter of the fiscal year ending March 31, 2013. Consequently, during the first quarter depreciation
and amortization and depreciation of real estate for rent and others were each ¥83 million lower, and ordinary profit and income
before income taxes were ¥83 million higher than they would have been under the previous method.

4

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

As of June 30, 2012

Cash and due from banks¥118,877¥100,378

Call loans and bills bought

66,30045,200

Monetary trusts

303,058

307,292

5,531,585

5,652,927

Loans

975,032

1,006,159

Tangible fixed assets

75,16974,720Intangible fixed assets

36,63636,364

Goodwill

839

694

OthersAssetsSecurities

35,79635,670Due from agencies－0

Due from reinsurers

79

82

Foreign exchanges

8,936

9,657

Other assets

92,416

101,915

Deferred tax assets

34,171

31,245

Customers'liabilities for acceptances and guarantees

1,000

1,000

Reserve for possible loan losses
Total Assets

5(1,848)(1,893)¥7,241,414¥7,365,051

(Millions of yen)
As of March 31, 2012

As of June 30, 2012

¥4,963,025¥5,072,122

Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders'dividends
Due to agencies
Due to reinsurers

48,23347,6604,910,669

5,020,464

4,122

3,997

1,664

1,333

647

479

1,760,853

1,766,149

Call money and bills sold

10,00010,000Borrowed money

2,000

2,224

Deposits

Foreign exchanges

35

21

Bonds payable

10,00010,000

Other liabilities

93,56393,424

Reserve for employees'bonuses

2,944

1,387

Reserve for employees'retirement benefits

21,54722,182

Reserve for directors'retirement benefits

354

342

25,386

26,97925,38026,973Special reserves
Reserve for price fluctuations
Reserve for financial products transaction liabilities

6

6

589

589

1,000

1,000

6,893,613

7,008,235

Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

98,677

99,591

Deferred tax liabilities on land revaluation
Acceptances and guarantees
Total Liabilities
Net Assets

313,854314,768

Net unrealized gains on other securities, net of taxes

Total shareholders'equity

36,94945,311

Net deferred losses on hedging instruments, net of taxes(2,414)(2,916)

Land revaluation, net of taxes(1,395)(1,395)

Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total Net Assets
Total Liabilities and Net Assets

6

(453)

(264)

32,68540,734

1,260

1,312

347,800

356,815¥7,241,414¥7,365,051

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the three months ended
June 30, 2011

For the three months ended
June 30, 2012

Ordinary Revenues¥256,810¥277,239

Ordinary Revenues from the Life Insurance Business

228,901

247,163

Income from insurance premiums

194,514217,825

Investment income

28,932

27,775(Interest income and dividends)

23,14925,657(Income from monetary trusts, net)

1,322

1,312

511

792

3,949

－

(Gains on sale of securities)(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)

5,454

1,562

20,46821,751

20,215

21,48920,20821,481

7

8

217

231

(Interest income and dividends)

206

226

(Gains on sale of securities)

19

13

Investment income

(7)

(8)

35

30

7,439

8,324

6,123

6,255

(Interest income on loans)

3,243

3,381

(Interest income and dividends on securities)

2,870

2,855

Fees and commissions

557

1,385

Other operating income

735

645

405

434

23

37

(Transfer to interest and dividends on deposits of premiums)
Other ordinary income
Ordinary Revenues from the Banking Business
Interest income(Gains on foreign exchange transactions, net)
Other ordinary income(Continued)

7

(Millions of yen)
For the three months ended
June 30, 2011

For the three months ended
June 30, 2012

Ordinary Expenses¥237,458¥261,815

Ordinary Expenses from the Life Insurance Business

211,601

233,736

71,39969,923(Insurance claims)

20,09817,284(Annuity payments)

1,911

2,226

Insurance claims and other payments(Insurance benefits)

8,271

8,669

(Surrender payments)

40,04840,668617

651

108,166

107,273

108,161

107,270

4

3

Investment expenses

3,063

26,116(Interest expenses)

18

12(Losses on sale of securities)

435

98

(Devaluation losses on securities)

213

107

(Losses on separate accounts, net)－

23,64325,047

26,141(Other payments)
Provision for policy reserves and others
Provision for policy reserves
Interest portion of reserve for policyholders'dividends

Operating expenses
Other ordinary expenses

3,924

4,281

19,56820,869Underwriting expenses

15,007

16,027(Net losses paid)

10,267

11,461(Loss adjustment expenses)

Ordinary Expenses from the Non-life Insurance Business

1,221

1,395

(Net commission and brokerage fees)

319

296

(Provision for reserve for outstanding losses)

164

372

3,033

2,501

(Provision for underwriting reserves)
Investment expenses
Operating, general and administrative expenses
Other ordinary expenses

1

0

4,556

4,839

3

1
(Continued)

8

(Millions of yen)
For the three months ended
June 30, 2011
Ordinary Expenses from the Banking Business

For the three months ended
June 30, 2012

¥6,288¥7,209

2,260

2,196

1,783

1,741

Fees and commissions

294

353

Other operating expenses

159

321

3,503

4,241

70

96

Ordinary Profit

19,351

15,424Extraordinary Losses

1,874

1,674

Interest expenses(Interest expenses on deposits)

General and administrative expenses
Other ordinary expenses

Losses on disposal of fixed assets

65

Impairment losses

0

76

1,867

1,592

1,867

1,592

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

(6)

(6)

Income Before Income Taxes

17,483

13,756

Income Taxes

6,600

4,090

5,211

4,891

- Current- Deferred
Income Before Minority Interests
Minority interests in income
Net Income

9

1,388

(800)

10,883

9,665

—

52

¥10,883¥9,613

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the three months
ended June 30, 2011

For the three months
ended June 30, 2012

¥10,883¥9,665Net unrealized gains on other securities, net of taxes

12,957

8,362

Net deferred losses on hedging instruments, net of taxes

(482)

(502)

Foreign currency translation adjustments

66

189

Share of other comprehensive income of affiliates accounted
for using equity method(0)0Income Before Minority Interests
Other comprehensive income

Total other comprehensive income

12,5408,049¥23,423¥17,714Comprehensive income attributable to parent company

23,423

17,662Comprehensive income attributable to minority interests－

52

Comprehensive income(Details)

103．Segment Information
For the three months ended June 30, 2011
(1) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥228,901
455
229,356\17,636¥20,468
0
20,469\789¥7,439
6
7,445
\891

Total
¥256,810
462
257,272\19,317(2) Reconciliations of the totals of reportable segments' profit to quarterly consolidated statement of income
Millions of yen¥19,3172
30

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income¥19,351(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None
For the three months ended June 30, 2012
(1) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit

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

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

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income¥15,424(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None

4．Subsequent Events
There were no applicable subsequent events.

11

SFH’s consolidated results* are prepared in accordance with accounting principles and practices generally
accepted in Japan. As such, these figures differ in significant respects from financial information reported by
SFH’s parent company, Sony Corporation, which prepares its financial statements in accordance withaccounting principles and practices generally accepted in the United States.
*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. Smart Link Network, Inc. was not included in thescope of consolidation for the three months ended June 30, 2011.
On August 2, 2012, Sony Corporation announced its consolidated financial results for the first quarter ended
June 30, 2012(April 1, 2012, to June 30, 2012). SFH Group companies constitute the majority of Sony Group’s
financial services segment. However, the scope of Sony Group’s financial services segment differs from thescope of SFH’s consolidated results.
This Consolidated Financial Summary contains statements concerning the current plans, expectations,strategies and beliefs of the SFH 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—statements using 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 SFH Group, based on information that is currently available to it.
As such, these forward-looking statements are subject to various risks and uncertainties, and actual businessresults may vary substantially from the forecasts expressed or implied in forward-looking statements.
Consequently, investors are cautioned not to place undue reliance on forward-looking statements. The SFH
Group disclaims any obligation to revise forward-looking statements in light of new information, future eventsor other findings. The information contained in this Consolidated Financial Summary does not constitute orform part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe forany securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract orcommitment whatsoever.
For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/web/index_en.html

12

IV. Attachment
Content of Presentation Material
1.
2.
3.
4.

Consolidated Operating Results for the Three Months Ended June 30, 2012・・・・・・・・・
Consolidated Financial Forecast for the Year Ending March 31, 2013・・・・・・・・・
Sony Life’s MCEV and Risk Amount Based on Economic Value as of June 30, 2012 ・・
Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

13

3
26
28
30

Presentation Material

Consolidated Financial Results
for the Three Months Ended June 30, 2012
andSony Life’s
M k t ConsistentMarketCi t t Embedded
E b dd d V
Valuelas of June 30, 2012
Sony Financial Holdings Inc.
August 13, 2012

Content■Consolidated Operating Results for the Three Months Ended June 30, 2012

P.3

■Consolidated Financial Forecast for the Year Ending March 31, 2013

P.26

■Sony Life’s MCEV and Risk Amount Based on Economic Valueas of June 30
30, 2012

P.28■ Appendix

P.30

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performanceand that are not historic facts are forward
forward-looking
looking statements.
statements Forward-looking
Forward looking statements may include
include—but
but are not limited
to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” and “possibility” that describe future
operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, arebased on judgments made by the management of the SFH Group, based on information that is currently available to it. As
such, these forward-looking statements are subject to various risks and uncertainties, and actual business results may vary
substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned
not to place undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking
statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any
p of it form the basis of or be relied on in connection with anyy contract or commitment
securities,, nor shall it or anyy partwhatsoever.

2Consolidated Operating Results for
the Three Months Ended June 30, 20123

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2012 (1)(Billions of yen)

Ordinary revenues

256 8
256.8

Ordinary profit

+8.0%

277.2

FY11 1Q
FY11.1Q

247.6

+18.3

+8.0%

Ordinary profit

17.6

13.7

(3.8)

(21.9%)

Non-life
insurancebusiness

Ordinary revenues

20.4

21.7

+1.2

+6.3%

Ordinary profit

0.7

0.7

((0.0))((8.0%))

Ordinary revenues

7.4

8.3

+0.9

+12.4%

Ordinary profit

0.8

0.8

(0.0)

(0.6%)

(0 4)
(0.4)

(0 5)
(0.5)

(0 0)
(0.0)

－

0.0

0.0

0.0

+23.1%

256.8

277.2

+20.4

+8.0%

O
Ordinary
profit
f

19 3
19.3

15 4
15.4

(3 9)
(3.9)

(20 3%)(20.3%)Net income

10.8

9.6

(1.2)

(11.7%)

12 3 3112.3.31

12 6 30
12.6.30

Total assets

7,241.4

7,365.0+123.6+1.7%

Net assets

347.8

356.8

+9.0

+2.6%

Ordinary revenues
Ordinary profit
Ordinary revenues

19.3

229.3

ChangeOrdinary revenues

Intersegment
adjustments*

15.4

FY12.1QLifeiinsurancebusiness

Bankingbusiness(20.3%)

FY11.1Q

C
Consolidated
lid t d

FY12 1Q
FY12.1Q(Billions of yen)(Billions of yen)

Consolidated

Change from
12.3.31*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY11.1Q: ¥23.4 billion, FY12.1Q: ¥17.7 billion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

Highlights of Consolidated Operating Performancefor the Three Months Ended June 30, 2012 (2) Life Insurance Business: Ordinary revenues increased year on year due to higher income frominsurance premiums associated with a steady increase in the policy amount in force. Ordinary profit
decreased year on year, reflecting an increase in provision for policy reserves related to minimum
guarantees for variable life insurance policies. The decrease was also due to recording profit for theprevious period resulting from lower insurance claims and other payments related to the Great East
Japan Earthquake than estimated in the reserve for outstanding claims as of March 31, 2011.

 Non-life Insurance Business：Ordinary revenues increased year on year, owing to an increase in net

premiums written primarily for automobile insurance. Ordinary profit slightly decreased year on year
owing to an increase in the loss ratio caused by higher net losses paid for automobile insurance.

 Banking Business：Ordinary revenues increased year on year due to an increase in net fees andcommissions resulting from Sony Bank’s acquisition of SmartLink Network, Inc. in July 2011 as its
consolidated subsidiary. Ordinary profit remained at the same levels as during the same period of thepreviousififiscall year, b
because hihigherh interesti
receivedi d on lloans ddue to an iincrease iin theh bbalanceloffmortgage loans offset a decrease in profit related to foreign currency transactions.

 Consolidated ordinary
y revenues increased 8.0% yearyon year,yto ¥277.2 billion, however, consolidated

ordinary profit decreased 20.3%, to ¥15.4 billion. Net income decreased 11.7%, to ¥9.6 billion.

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

5

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

229.3

FY11.1Q

FY12.1Q

229.3

247.6

+18.3

+8.0%

Income from insurance premiums

194.6

217.9

+23.3

+12.0%

Investment income

29.0

27.8

(1.1)

(4.0%)+10.8%(Billions of yen)

Ordinary profit

+8.0%

247.6

Ordinary revenues

Interest income and dividends

23.2

25.7

+2.5

Income from monetary trusts, net

1.3

1.3

(0.0)

(0.7%)

Gains on sale of securities

0.5

0.7

+0.2

+52.7%

3.9

－

(3.9)

(100.0%)

211.3

233.4

+22.0

+10.4%

Insurance claims and other payments

71.3

69.9

(1.4)

(2.1%)

Provision for policy reserves and others

108.1

107.2

((0.9))((0.8%))

3.0

26.1

+23.0

+745.2%(77.5%)

Gains on separate accounts, net(20.8%)

Ordinary expenses

14.1

17 9
17.9

Investment expenses

FY11.1Q

FY12.1Q(Billions of yen)Ordinary revenues increased but ordinary profit decreased year onyear.
Income from insurance premiums increased due to a steadyincrease in the policy amount in force.
Investment income decreased due to worse investment
performance on separate account assets under the deterioratedfi
financiali l market
k t conditions.
diti
Thi
This offset
ff t theth positive
iti iimpactt off hihigherhinvestment income in the general account assets, driven mainly byan increase in interest income and dividends.
Ordinary profit decreased year on year, reflecting an increase inprovision for policy reserves related to minimum guarantees forvariable life insurance policies. The decrease was also due torecording profit for the previous period resulting from lower
insurance claims and other payments related to the Great East
Japan Earthquake than estimated in the reserve for outstanding
claims as of March 31, 2011.

ChangeLosses on sale of securities

0.4

0.0

(0.3)

Losses on separate accounts, net

－

23.6

+23.6

－
+4 3%
+4.3%

25 1
25.1

26 1
26.1

+1 0
+1.0

Ordinary profit

17.9

14.1

(3.7)

(20.8%)Net income

10.1

8.2

(1.9)

(19.4%)

12.3.3112.6.30

Securities

4,545.0

4,657.1+112.1+2.5%

Policy reserves

4,843.0

4,950.2+107.2+2.2%

Total net assets

264.8

272.2

+7.3

+2.8%
+24.3%

Operating expenses(Billions of yen)

Net unrealized gains on other securities
Total assets
Separate account assets

Change from 12.3.31

34.0

42.3

+8.2

5,222.8

5,330.7+107.9

+2.1%

444.2

427.5

(16.7)(3.8%)

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

6

Overview of Performance:
Sony Life (Non-consolidated)(Billions of yen)
New policy amount
Lapse and surrender amount

FY11.1Q

ChangeFY12.1Q(Reasons for changes)

1,054.4

1,066.5

+1.1%

530 3
530.3

497 5
497.5

(6 2%)(6.2%)

Lapse and surrender rate

1.53%

1.38%

(0.15pt)

Policy amount in force

35,073.4

36,432.0+3.9%Annualized premiums from new policies

17.1

17.4

+1.6%

Of which, third-sector products

4.2

4.4

+4.5%

611.5

643.0

+5.2%

143.1

151.5

+5.9%

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

FY11.1Q

Gains from investment, net (General account)

21.9

25.3

+15.3%

Core profit

19.2

14.7

(23.0%)

Negative spread

13
1.3

05
0.5

Solvency margin ratio

12.6.30

1,980.4%

2,081.8%

 Decreased due to the lowering lapse andsurrender rates mainly in term-life insurance.

 Increased due mainly to higher sales of living
benefit insurance.

 Increased due to an increase in interest income
and dividends.

ChangeFY12.1Q

12.3.31

 Increased due mainly to higher sales of living
benefit insurance.

 Decreased reflecting an increase in provision forpolicy reserves related to minimum guarantees forvariablei bl lif
life iinsurance policies.
li i
Th
The d
decrease wasalso due to recording profit for the previous period
resulting from lower-than-estimated insurance
claims and other payments related to the Great
East Japan Earthquake in the reserve foroutstanding claims as of March 31, 2011. These
decreases in profit offset the positive impact of adecline in negative spread.

(61 5%)(61.5%)
Changefrom 12.3.31+101.4pt

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as thetotal of individual life insurance and individual annuities.
*2 The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at thegg of the fiscal yyear.
beginning*3 The above-stated figures of solvency margin ratio are calculated according to the new standards which became
effective as of the end of fiscal 2011 (March 31, 2012).

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

7

Sony Life Operating Performance (1)Number and Amount of New Policies

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount(T illi(Trillions
off yen))155

Number of new policies(Thousands of policies)
+1.3%

150

1 05
1.05

20

+1.1%

Of which, third-sector(Billions of yen)152

15,000
1.5

1 06
1.06

Annualized premiums from new policies

1 06
1.06

18.1

17.1

+1.6%

17.4

15

100

10,000
1.0

10

5,000
0.5

+4.5%

5

0

0
FY10.1Q

FY11.1Q

FY12.1Q

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

4.1

4.2

4.4

FY10.1Q

FY11.1Q

FY12.1Q

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

8

Sony Life Operating Performance (2)Number and Amount of Policies in Force

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

Policy amount in force

Number of policies in force

Annualized premiums from insurance in force

Of which, third-sector(Millions of policies)(Trillions of yen)
+6.1%

5.76

5.67

(Billions of yen)

+1.5%

5.42

611.5

+5 2%
+5.2%

643.0

635 4
635.4
+1.2%

35.0

+3.9%

36.4

36.0
+1.0%

+5.9%

143.1

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

148.9

+1.7%
1 7%

151 1
151.1

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

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

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

10

Lapse and surrender rate
（1Q）

Lapse and surrender rate
（Annual）

2,500+101.4pt

8

2,000

6.41
6

2 081 82,081.8

1,980.4
1,720.0

5.93
1,500

4

2

1.58

1.53

FY10

FY11

1,000
(0.15pt)

1.38

0
500

0
FY12.1Q*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

11.3.3112.3.3112.6.30

Note: The above-stated figures of solvency margin ratio are calculated according
to the new standards which became effective as of the end of fiscal year 2011
(March 31, 2012).

Percentage change figures are rounded.

10

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

Ordinary Profit(Billions of yen)

217 9
217.9
30

+12.0%

200

182.6

194.6

18.8

20

17.9
14.1

100

(20.8%)

10

00
FY10.1Q

FY11.1Q

FY10.1Q

FY12.1Q

FY11.1Q

FY12.1Q

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

11

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

19.2

20

3
(23 0%)(23.0%)

2.6
14.7

15

2

11.7
10

1.3
(61.5%)

1
5

0.5

0

0
FY10.1Q

FY11.1Q

FY12.1Q

FY10.1Q

FY11.1Q

FY12.1Q

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

12

Sony Life Operating Performance (6)Number of Lifeplannerp
Sales Employees
p y(Number)

4,500
4,066
(49)

4,026
(51)

4,023
(62)

3,996
(66)

4,098
4
098
(79)

4,116
(71)

4 000
4,000

(18)

3,500

3,000
0
11.3.3111.6.30

11.9.30

Note: Figures in ( ) show the numbers of Lifeplanner sales employees (rehired ona fixed-term contract basis after retirement) included in the overall numbers.

11.12.31

12.3.3112.6.30* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

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

12.3.31<Asset management review>

12.6.30

Amount%Amount%3,975.7

83.2%

4,113.8

83.9%

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

Japanese stocks

45.0

0.9%

37.6

0.8%

Japanese government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY12

Foreign securities

59.6

1.2%

60.4

1.2%

Foreign stocks

30.5

0.6%

30.1

0.6%

Monetary trusts

288.2

6.0%

292.5

6.0%

Japanese governmentand corporate bonds<Lengthened<Lgasset duration>

Policy loans

138 7
138.7

2 9%
2.9%

138 8
138.8

2 8%
2.8%

Real estate

72.9

1.5%

72.4

1.5%

Cash and call loans

64.8

1.4%

46.3

0.9%

102.6

2.1%

111.0

2.3%

4,778.5

100.0%

4,903.2

100.0%

OthersTotal

11.3.3118.5 years

12.3.3119.2 years

12.6.30

19.2 years■Investment in the monetary trusts is mainly into Japanese
government and corporate bonds.
■The holding ratio on the real status, of Japanese government andcorporate bonds including those invested in monetary trusts in thegeneral account assets:
As of June 30, 2012: 89.9%, (As of March 31, 2012: 89.2%)

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

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

+6 3%
+6.3%

20.4

(Billions of yen)

21.7

(8.0%)

21.7

+1.2

+6.3%

Underwriting income

20.2

21.4

+1.2

+6.3%

Investment income

02
0.2

02
0.2

+0 0
+0.0

+6 4%
+6.4%

19.6

21.0

+1.3

+6.8%

Underwriting expenses

15.1

16.1

+1.0

+6.8%

Investment expenses

0.0

0.0

(0.0)

(93.2%)

FY11.1Q

Operating, general andadministrative expenses

4.5

4.8

+0.3

+7.0%

Ordinary profit

0.7

0.7

(0.0)

(8.0%)Net income

0.4

0.4

(0.0)

(9.4%)

Ordinary expenses

0.7

FY12.1Q(Billions of yen)Ordinary revenues increased but ordinary profit
decreased year on year.
Ordinary revenues increased owing to an increase in
net premiums written atop growth in the number of
insurance policies in force centered on automobile
insurance.
Ordinary profit decreased owing mainly to an increasein the loss ratio caused by higher net losses paid forautomobile insurance.

ChangeFY12.1Q

20.4

Ordinary revenues

0.7

FY11.1Q(Billions of yen)

12.3.31

67.3

Underwriting reserves

12.6.30

Change from 12.3.31

69.8

+2.5

+3.7%

Total net assets

18.0

18.4

+0.4

+2.4%

Total assets

118.6

120.0

+1.4

+1.2%

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

15

Overview of Performance:
Sony Assurance(Billions of yen)

FY11.1Q(Reasons for changes)

ChangeFY12.1Q

Direct premiums written

20.0

21.2

+6.0%

Net premiums written

20.2

21.4

+6.3%

N t llosses paid
Net
id

10 2
10.2

11 4
11.4

+11 6%+11.6%

0.5

0.4(13.0%)Net loss ratio

56.9%

59.9%

+3.0ptNet expense ratio

24.6%

24.5%

(0.1pt)Combined ratio

81.4%

84.4%

+3.0ptUnderwriting profit

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

12.3.31
Number of policies in force
Solvency margin ratio Increased owing to an increase in the numberof policies in force for automobile insurance.

 Increased owing mainly to an increase in thenumber of policies in force for automobile
insurance, as well as rising unit cost of
insurance claims and influences of natural
disasters.

 Increased due to an increase in the number ofpolicies in force for automobile insurance
insurance.

12.6.30

Change from 12.3.31

1.49 million

1.51 million+0.02 million

557.8%

558.8%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

+1.5%+1.0ptLine item amounts are truncated below ¥ 100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

16

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

Net Premiums Written

FY11.1Q

FY11.1Q

ChangeFY12.1Q

Fire

32

63

+97.9%

Marine－－－P
Personall accident*
id t*

1 805
1,805

1 931
1,931

+6 9%
+6.9%

Voluntary automobile

18,184

19,219

+5.7%

－

－

－

20,022

21,214+6.0%

Compulsory
automobile liability
Total

ChangeFY12.1Q(Millions of yen)

(Milli(Millions
off yen))
Fire

61

69

+11.6%

Marine242－Personal accident*
accident

1 875
1,875

2 001
2,001

+6 8%
+6.8%

Voluntary automobile

18,117

19,150

+5.7%

150

217

+45.1%

20,20821,481+6.3%

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

Net losses paid
FY11.1Q

ChangeFY12.1Q(Millions of yen)
Fire

7

0

(95.3%)

Marine8122－Personal accident*

426

467

+9.5%

Voluntary automobile

9,627

10,631+10.4%

Compulsory
automobile liability

197

239

+21.3%

10,267

11,461+11.6%

Total

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

17

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

Personal accident insurance(Millions of policies)

Number of policies in force

Other

+7.0%

30

1.51

1 41
1.41

(Billi(Billions
off yen))18.8
8
0 1 18
0.1
1.8

0.2

20.2
1.8

1.6

(Billions of yen)

1.5

1.4

1.30
20

Ordinary Profit+6.3%

21.4 0.3
20
2.0

1.2
1

1

0.7

0.8

16.8

18.1

(8.0%)

0.7

19.1
06
0.6

10

0.5

0.4

0.4
02
0.2
0

0
FY10.1Q

FY11.1Q

FY12.1Q

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

0
FY10.1Q

FY11.1Q

FY12.1Q

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

18

Sony Assurance Operating Performance (2)Reference
Earned/Incurred Loss Ratio +Net Expense Ratio
Earned/Incurred loss ratio
(%)
100

95.2

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

Net expense ratio

98.1
90 3
90.3

(%)
100

93.4

5pt
89.9
89
9 +33.5pt

Net expense ratio

89.0

85.6

80

79.1

80

81.4

+3 0 t+3.0pt+3.6pt

60
69.7

72.4

66.4

65.3

84.4

+3.0pt

60

68.9

60.0

63.3

25.5

25.7

55.2

56.9

23 9
23.9

24 6
24.6

24 5
24.5

FY10.1Q

FY11.1Q

FY12.1Q

59.9

40

40

20
25.5

25.7

20

(0.1pt)

23 9
23.9

24 6
24.6

24
24.5

FY10.1Q

FY11.1Q

FY12.1Q(0.1pt)

0

0
FY10

FY11

FY10

FY11

Earned/Incurred loss ratio is equalqto the ratio of the sum of net losses p
paid,, loss adjustmentj

Net expensepratio is equalqto the ratio of total underwritingg costs to net p
premiums written.

expenses and accumulation in provision for reserve for outstanding losses to earned premiums.

Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to*Note that earthquake insurance and compulsory automobile liability insurance are excluded

net premiums written.

from the above calculation.

19

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

1,200

800
+1.0pt631 0%
631.0%

557.8%

558 8%
558.8%

400

011.3.3112.3.3112.6.30

Note: The above-stated figures of solvency margin ratio are calculated according to the new standards which became effective as of the end of fiscal year 2011
(March 31, 2012).

20

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

8.3

FY11.1Q

FY12.1Q

Consolidated ordinary revenues

7.4

8.3

+0.9

Consolidated ordinary profit

10
1.0

10
1.0

(0 0)
(0.0)

(0 5%)(0.5%)

Consolidated net income

0.5

1.4

+0.8

+154.1%(Billions of yen)

7.4
+12 4%+12.4%

Change+12.4%<Non-consolidated>

FY11.1Q

FY12.1Q

Ordinary revenues

7.4

7.5

+0.0

+0.9%

Gross operating profit

4.5

4.4

(0.0)

(1.7%)Net interest income

3.8

4.0

+0.1

+5.0%

Net fees and commissions

0 06
0.06

0.04

(0 01)(0.01)(27 9%)(27.9%)Net other operating income(Billions of yen)

10
1.0

1.0
(0.5%)

FY11.1Q

FY12.1Q (Billions of yen)<Consolidated>
Consolidated ordinary revenues increased year on year due to anincrease in net fees and commissions resulting from Sony Bank’s
acquisition of SmartLink Network, Inc. as its consolidated
subsidiary. Consolidated ordinary profit remained at the samelevels. Consolidated net income increased due to recording
deferred tax assets related to accumulated losses of Sony Bank
Securities Inc.
<Non-consolidated>p
gp
profit decreased yyear on yyear due to a decrease
Gross operating
in profit related to foreign currency transactions which offset
higher interest received on loans due to an increase in thebalance of mortgage loans.
Net income decreased owing to recording impairment losses on
stocks of Sony Bank Securities Inc. resulting in a loss of ¥1.2
billionbillion.
Net operating profit decreased owing to higher general andadministrative expenses led primarily by personal reinforcement
for business expansion.

Change

0.5

0.3

(0.2)

(43.6%)

General andadministrative expenses

3.3

3.5

+0.1

+4.3%

Ordinary profit

1.1

0.8

(0.2)

(20.8%)Net income

0.6

(1.2)

(1.8)

―

Net operating profit

1.1

0.9

(0.2)

(21.3%)(Billions of yen)
Total net assets
Net unrealized gains
on other securities (net of taxes)
Total assets

12.3.3112.6.30

62.7

61.1

Change from 12.3.31(1.6)(2.6%)

1.7

1.8

+0.0

+4.7%

1, 890.5

1,902.0

+11.5

+0.6%

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

21

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)
11.6.30

12.3.3112.6.30

1,772.2

1,864.3

1,868.0

+3.7

+0.2%

Deposits

1,664.5

1,762.2

1,767.2

+4.9

+0.3%

Yen

1,299.4

1,390.5

1,401.8

+11.2

+0.8%

365.0

371.7

365.4

(6.2)

(1.7%)

107.6

102.0

100.8

(1.2)

(1.2%)

748.3

835.5

866.4

+30.8

+3.7%

676.1

749.6

774.4

+24.8

+3.3%

85.9

(*1)

+6.0

+7.1%

Change from 12.3.31(Billions of yen)
Customer assets

Foreign currency
Investment trusts
Loans outstanding
Mortgage loans
Others

72.1

92.0
*1
1

Capital adequacy ratio(domestic criteria) (*2)

10.65%

11.58%

11.29%(0.29pt)

Tier 1 ratio

10.22%

9.63%

9.36%

(0.27pt) Yen deposit increased ddue
e to the positi
positiveeeffect of special campaigns associatedwith the 2012 summer bonus season.

 Foreign currency deposit slightly
decreased reflecting the yen’s
appreciation that had the negative impact
on the foreign exchange conversion(negative impact of ¥18.1 billions).
 Balance of investment trusts decreased
due to the impact of a decline in the Net
Asset Value (NAV).
 Loan balance increased due to anincrease in the balance of mortgage loans
loans,
in addition to a higher corporate loanbalance centered on syndicated loans.

*1 Loans in others include corporate loans of ¥84.9 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P25.
.

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

22

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

FY11.1Q

FY12.1Q

4.5

4.4<Reference> Interest Spread(Managerial Accounting Basis)

Change(0.0)

Yield on investment(1.7%)Net interest income *1 ①

4.1

4.2

+0.0

2.4%

Net fees andcommissions *2 ②

0.3

0.1

(0.1)

(35.5%)Net other operating
income *3

0.0

0.0

(0.0)

－

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

4.4

4.3

(0.0)

(0.3%)

Operating expenses andother expenses ③

3.3

3.5

+0.1

+5.2%

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

1.0

0.8

(0.1)

(17.2%)

Yield on financing

Interest spread

(%)
1.50

1.37

1.00

1.31

(0.04pt)

0.94

0 90
0.90

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

0.50*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income
income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.

0.43

0.41

FY11.1Q

FY12.1Q

0.00
Note: Interest spread=(Yield on investment)-(Yield on financing)●Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

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 FY12.1Q. Accordingly, the figures for FY11.1Q were retroactively calculated.

23

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

Loans
Mortgage loans

Foreign currency deposits

Others*Including corporate loans of ¥84.9 billion.

(Billions of yen)

866.4

(Billions of yen)

835.5

+30.8

92.0*

800

722.4

2,000

1,762.2
1,649.1+4.9*Corporateloans of¥84.9 billion.

1,767.2
365.4

600

1,500

400

1,000

774.4
1,401.8
200

500

0

0

11.3.3112.3.3112.6.30

11.3.3112.3.3112.6.30

Line item amounts are truncated below ¥100 million.

24

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

Balance of Securities by Credit Ratings
AAA
BBB

AA
Other

A

Capital Adequacy Ratio

Tier1 Ratio(%)
15(Billions of yen)

1,200

11.58

((0.29 pt)
p)

11.29

10.84
1,000

940.1

917.9

912.9

10

+5.0

10.41
800

9.36
9.63
(0.27 pt)

600

5

400

200

0
11.3.310
11.3.3112.3.3112.6.30

12.3.3112.6.30* Sony Bank’s
Bank s non-consolidated
non consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Act, in accordance with FSA Notification No. 19(2006).
Amounts are truncated below ¥100 million.

25

Consolidated Financial Forecast
for the Year Ending
g March 31,, 201327

Consolidated Financial Forecast
for the Year Ending March 31, 2013
■SFH’s forecast of consolidated financial results for FY2012 is unchanged from the forecast announced on May 10, 2012.
(Billions of yen)

FY2011
Actual

FY2012
Forecast

Change1,078.0

1,115.0+3.4％

Banking business

967.5
80.0
32.5

994.5
86.8
34.5

+2.8％
+8.4％
+6.0％

Consolidated ordinary profit

74.6

67.0

(10.2％)

Life insurance businessBankingg business

68.1
2.8
3.4

61.5
2.6
3.6

(9.8％)(9.1％)+3.9％

Consolidated net income

32.8

37.0

+12.8％

Consolidated ordinary revenues
Life insurance business
Non-life insurance business

Non-life insurance businessNote: From FY2012, SFH will omit its half-year results forecast, which it previously announced, reflecting the SFH Group’s long-term business structure
as a financial institution.
■Life insurance business
Ordinary revenues for FY2012 are expected to increase year on year. In the current fiscal year, we do not expect to record an increase in investment income that we posted at the previous
year-end due to the market, although we do anticipate that income from insurance premiums will increase in line with steady growth of the policy amount in force.
Ordinary profit is expected to decrease, since we do not anticipate the profit recorded in the previous fiscal year. In the previous fiscal year, Sony Life recorded a profit due to lower
insurance claims and other payments relating to the Great East Japan Earthquake than we had estimated at the end of March 2011, as well as gains on sale of securities, reflecting theprocess of shifting bond holdings to ultralong-term bonds. However, we do not anticipate such gains for FY2012.
■Non-life insurance business
Ordinary revenues for FY2012 are expected to increase year on year, owing to an increase in net premiums written, primarily for automobile insurance.
Ordinary profit is expected to slightly decrease, mainly because we expect the loss ratio to stay at a high level and the expense ratio to slightly increase resulting from an increase insystem-related expenses.
■Banking Business
Ordinary revenues for FY2012 are expected to rise year on year, owing mainly to a growing balance of loans, especially mortgages.
Ordinary profit is expected to rise, as we anticipate a steady increase in gross operating profit, driven by business expansion.

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

Sony Life’s MCEV
andRisk Amount Based on Economic Valueas of June 30, 201229

Sony Life’s MCEV and Risk Amount Based on
Economic Value as of June 30, 2012
(Billions of yen)

12.3.3112.6.30

Change from(JGB yield)(JGB yield)

12.3.31

1 041 5
1,041.5

1 054 5
1,054.5

+12.9
12 9

Adjusted net worth

409.2

432.3

+23.1

Value of existing business

632 4
632.4

622 2
622.2

(10 2)(10.2)MCEV(1) Calculated MCEV for policies in force as of June 30, 2012 by using updated lapse and surrender rate and economic assumptions.
(2) Adopted simplified method for a part of MCEV calculations as of June 30, 2012.

(Reason for change) The value of existing business as of June 30, 2012, was down about ¥10.2 billion from March 31, 2012, due mainly to a
decline in ultralong-term interest rates, which offset the positive impact including the addition of new business value.
On the other hand, adjusted net worth was up approximately ¥23.1 billion due to an increase in prices of ultralong-term
JGBs held from an ALM perspective despite the dividend payout to a shareholder
shareholder.
Consequently, MCEV as of June 30, 2012, was up from March 31, 2012.
* Please keep in mind that the validity of these calculations has not been verified by outside specialists.

(Billions of yen)

The risk amount based on
economic value

12 3 3112.3.31551.5

12 6 30
12.6.30
578.8

Change from 1212.3.31
3 31+27.3

Note: Measurement of risk based on economic value takes one-year VaR to be 99.5% and is measured using an internal model that refers to the
EU Solvency II (QIS5) standard model.

30

Appendix

31

Recent Topics 1
AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20
stock ¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products: Individual Variable Annuities (2 types, 4 products)
Sales Channels: Lifeplanner sales employees and partner Banks (7*)(7 ) As of August 13
13, 2012
Financial Highlights for FY12.1Q:
Number of new policies: 1,075, New policy amount: ¥7.4 billion
Number of policies in force: 4,726 policies, Policy amount in force: ¥36.8 billion (As of June 30, 2012)

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 25% of the balance ofmortgage loans as of June 30, 2012
Sony Life accounts for 27% of the amount of
new mortgage loans for FY12.1Q
Sony Life started handling banking agency business in January 2008.
2008
*Sony

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY12.1Q* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

32

Recent Topics 2<Highlights for FY12.1Q>
2012-5-16

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

2012-6-21

Sony Life started managing an official Facebook page

2012-7-23

Sony Assurance launched renewed official website and smartphone site

2012 7 27
2012-7-27

Sony Assurance began providing smartphone applications designed to assist drivers to be conscious of the importance ofsafe 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.

2012-8-01

AEGON Sony Life Insurance began offering a new individual variable annuity product,
product "WithWith Family"
Family through Sony Life
Life'ss

2012-8-01

Sony Bank transferred all Sony Bank securities’ shares to Monex Group with the aim of enhancing financial products

Lifeplanner sales employeesintermediary services through strengthening business alliance with Monex Group.

33

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

Notes: 1) Line item amounts are truncated below ¥100 million. 2) Amounts above include those categorized as “monetary trusts.”34

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Real Net Assets and Solvency Margin(Billions of yen)
①Net Assets(B/S)

12.3.31②RealNet Assets

12.6.30

12.3.31③Solvency
Margin12.6.30

12.3.31

Total shareholders’ equity

232.2

231.3

232.2

231.3

Net unrealized gains on other securities, net of taxes

34.0

42.3

34.0

42.3

－

－

－

－

－

－

54.6

65.4

Land revaluation, net of taxes((1.3)
3)((1.3)
3)((1.3)
3)((1.3)
3)－－

Reserve for price fluctuations

－

－

25.3

26.9

25.3

26.9

Contingency reserve

－

－

55.3

56.3

55.3

56.3

General reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains (losses) on available-for-sale securities

223.1

231.3

Net unrealized gains on real estate

－

－

0.6

0.6

(0.1)

(0.1)

Excess amount of policy reserves based on Zillmer method

－

－

350.4

355.7

304.4

315.2

0.6
0
6

0.7
0

0.6
0
6

Unallotted portion of reserve for policyholders'
policyholders dividends

－

－

0.7
0

Deferred tax assets

－

－

－

－

58.7

62.4

Unrealized gains (losses) on held-to-maturity bonds

－

－

155.8

176.2

－

－

Deferred tax liabilities for available-for-sale securities

－

－

18.3

22.1

－

－

264.8

272.2

871.4

910.8

722.1

758.1

Total

Note: Real net assets excluding net unrealized gains (losses) on held-to-maturity securities and on policy reserve matching bonds, are¥715.5 billion as of March 31, 2012, and ¥734.6 billion as of June 30, 2012.

Notes

12.6.30③After estimateddistributed income
deducted③Before tax x 90%②Before tax（after revaluation）③Before tax(Before revaluation) X85%
(If losses X100%)③After deducting exclusion
amount②Before tax

Amounts are truncated below ¥100 million.

35

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

36