Consolidated Financial Summary (Japanese GAAP)
for the Six Months Ended September 30, 2010
November 15, 2010

Company name:Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/index_en.html)
Stock exchange listings: Tokyo Stock Exchange (code number: 8729)
Representative:
Katsumi Ihara, President and Representative Director
Inquiries:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
(Fractional amounts of less than ¥1 million are discarded.)1.

Consolidated financial results for the six months ended September 30, 2010
(1) Operating results
Ordinary Revenues
Ordinary Profit
For the six months ended
September 30, 2010
For the six months ended
September 30, 2009

Millions of yen% change496,2093.1

481,247

14.6

Millions of yen

Net Income% change

Millions of yen% change

51,55430.7

29,42025.8

39,45775.6

23,386

92.0

Net Income per ShareNet Income per Share(Fully Diluted)

Yen

Yen

For the six months ended
September 30, 2010
For the six months ended
September 30, 2009

13,526.64—

10,752.29—(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of September 30, 2010

6,295,482

299,825

4.8

137,851.03

As of March 31, 2010

6,001,088

269,439

4.5

123,880.11

Notes: 1. Shareholders’ equity:

As of September 30, 2010:¥299,825 million
As of March 31, 2010: ¥269,439 million
2. The net asset ratio is computed by dividing the amount of total net assets by total assets at the end of the fiscal period.

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2010
For the year ending
March 31, 2011
For the year ending
March 31, 2011
(forecast)

1st quarterYen

2nd quarter
Yen

—

0.00

—

0.00

3rd quarter
Yen

Year-end
Yen

Annual Total
Yen—

3,000.00

3,000.00—

3,000.00

3,000.00

3. Forecast of consolidated financial results for the year ending March 31, 2011
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

Ordinary Profit

Millions of yen % change Millions of yen

For the year ending
March 31, 2011

974,000(0.5)

74,000% change(12.3)Net Income per
Share

Net Income
Millions of yen

40,000% change(16.9)

Yen

18,390.80

4. Other Information(Note) Please refer to “2.Other information” on page 19, for details.
(1) Changes in scope of consolidation during the period (changes in specified subsidiaries accompanying changes in scopeof consolidation): None
(Note) This item indicates whether there were changes in significant subsidiaries affecting the scope of consolidation
during this period.
(2) Changes in accounting policies, procedures and presentation(a) Changes due to revision of accounting standards: Yes(b) Changes due to other reasons: None
(Note) This item indicates whether there were changes of accounting policies applied, procedures and disclosures forpresenting interim consolidated financial statements, described in “Changes in Bases of Presenting Interim
Consolidated Financial Statements.”(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of September 30, 2010:
2,175,000 shares
As of March 31, 2010:
2,175,000 shares(b) Number of treasury shares
As of September 30, 2010:— shares
As of March 31, 2010:— shares(c) Weighted-average number of shares
For the six months ended September 30, 2010:
2,175,000 shares
For the six months ended September 30, 2009:
2,175,000 shares

Audit of Interim financial statements
・Interim financial statements in these documents are not reviewed or audited by PricewaterhouseCoopers Aarata in accordancewith Article 193-2-1 of the Financial Instruments and Exchange Law of Japan.

Content of Supplemental Materials
I． Consolidated Operating Results for the Six Months Ended September 30, 2010
1. Consolidated Operating Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
2. Operating Results of Main Subsidiaries・・・・・・・・・・・・・・・・・・・・・・・
3. Consolidated Financial Forecast for the Year Ending March 31, 2011 ・・・・・・・
4. Appendix ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
II． Other Information
1. Changes in scope of consolidation during the period(changes in specified subsidiaries accompanying changes in scope of consolidation)・・
2. Changes in accounting policies, procedures and presentation・・・・・・・・・・・
III． Consolidated Financial Statements
1. Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・・
2. Consolidated Statements of Income ・・・・・・・・・・・・・・・・・・・・・・・・・・・
3. Consolidated Statements of Changes in Net Assets・・・・・・・・・・・・・・・・・
4. Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
5. Per Share Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2
3
15
16

19
19
20
22
25
27
29

The Conference Call for explaining the SFH Group financial results will be held at 17:00, November 15, 2010.
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 November 15, 2010, and its Q&A summary
later on Presentation Materials page on our website.
Also, on November 15, 2010, we will upload Guidance on the Value of Existing Business, a Component ofSony Life’s Market Consistent Embedded Value (MCEV), as of September 30, 2010.
Please see futher details at our website:
http://www.sonyfh.co.jp/index_en.html

1

I. Consolidated Operating Results for the Six Months
Ended September 30, 2010

1. Consolidated Operating Results

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2010 (1)FY09.1H

FY10.1H

Change(Billions of yen)

Ordinary revenues

481.2

Ordinary profit

496.2
+3.1%

Life
insurancebusiness

Ordinary revenues

432.6

444.5

+11.8

+2.7%

Ordinary profit

36.3

49.5

+13.1

+36.3%

Non-life
insurancebusiness

Ordinary revenues

33.9

37.1

+3.1

+9.2%

1.5

0.6

(0.8)

(56.0%)

15.3

15.4

+0.1

+1.0%

1.4

1.2

(0.2)

(17.6%)

(0.7)

(0.9)

(0.1)

－

0.0

0.0

+0.0

+42.1%

Ordinary profit
Ordinary revenues

Bankingbusiness+30.7%

51.5

Ordinary profit

Corporateandelimination

Ordinary revenues
Ordinary profit

39.4
Consolidated

FY09.1H

481.2

496.2

+14.9

+3.1%

Ordinary profit

39.4

51.5

+12.0

+30.7%Net income

23.3

29.4

+6.0

+25.8%

Ordinary revenues

FY10.1H(Billions of yen)

09.9.30

10.3.3110.9.30

Change from 10.3.31

Total
assets5,584.7

6,001.0

6,295.4+294.3+4.9%

Netassets

249.9

269.4

299.8

+30.3

+11.3%(Billions of yen)

Consolidated

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

2

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2010 (2) Life Insurance: Ordinary revenues increased year on year, due to higher income frominsurance premiums associated with steady increases in the new policy amount and thepolicy amount in force, as well as higher gains on sale of securities and interest income
and dividends on general account assets. Ordinary profit increased year on year, due
primarily to higher gains on sale of securities in the general account assets.
 Non-Life Insurance: Ordinary revenues increased year on year, owing to an increase in

net premiums written, reflecting a growing number of in-force policies, primarily for
automobile insurance. However, ordinary profit decreased, due mainly to higher
insurance claim payments for automobile insurance.
 Banking: Ordinary revenues remained at the same level as during the same period of theprevious fiscal year. Gross operating profit increased due to an increase in interest
income on loans led by the growing balance of mortgage loans and improved investment
performance. Ordinary profit decreased, due mainly to an increase in general andadministrative expenses, particularly system-related expenses.
 Consolidated ordinary revenues increased 3.1% year on year, to ¥496.2 billion.

Consolidated ordinary profit and consolidated net income increased 30.7%, to ¥51.5
billion and 25.8%, to ¥29.4 billion, respectively.

I. Consolidated Operating Results for the Six Months
Ended September 30, 2010

2. Operating Results of Main Subsidiaries

3

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

432.5

+2.7%

Ordinary profit(Billions of yen)

444.3

50.0
+37.3%

36.4

FY09.1H

FY09.1H

Ordinary revenues

FY10.1H

FY10.1H

Change

432.5

444.3

+11.8

Income from insurance premiums

339.3

371.0

+31.6

+2.7%
+9.3%

Investment income

91.5

71.1

(20.4)(22.3%)

Interest income and dividends

32.9

42.3

+9.4

+28.7%

Income from monetary trusts, net

9.5

4.3

(5.2)

(54.7%)

Gains on sale of securities

9.7

24.4

+14.7

+150.6%

Gains on separate accounts, net

38.1

－

(38.1)(100.0%)

396.0

394.3

(1.7)

(0.4%)

Insurance claims and other payments

134.4

132.0

(2.3)

(1.8%)

Provision for policy reserve and others

197.3

179.3

(17.9)(9.1%)

Investment expenses

Ordinary expenses

10.7

27.1

+16.4

+153.2%Losses on sale of securities

5.3

0.7

(4.6)

(86.8%)

Losses on separate accounts, net

－

21.4

+21.4

－

47.5

49.0

+1.5

+3.2%

Ordinary profit

36.4

50.0

+13.5

+37.3%Net income

21.7

28.9

+7.2

+33.4%

Operating expenses(Billions of yen)Ordinary revenues and ordinary profit increased year onyear.
Income from insurance premiums increased due toincreases in the new policy amount and the policy amountin force.
Investment income decreased year on year due todeteriorated performance on separate account assets
which offset increases in gains on sale of securities andinterest income and dividends.
Ordinary profit increased, due primarily to higher gains
from investment, net, on general account assets.
Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

09.9.30

10.3.3110.9.30

Securities

3,087.2

3,539.1

3,824.7+285.6

Policy reserves

3,787.2

3,985.6

4,163.5+177.9+4.5%

Total net assets

173.2

191.3

222.4

+31.1

+16.3%

21.7

15.4

24.6

+9.1

+59.1%

4,042.0

4,286.5

4,487.8+201.3

+4.7%

331.8

373.6

367.2

(6.3)

(1.7%)(Billions of yen)

Net unrealized gains/losses onother securities
Total assets
Separate account assets

Change from 10.3.31+8.1%

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

FY09.1H

FY10.1H

ChangeNew policy amount

1,818.4

2,068.4+13.7%

Lapse and surrender amount

1,060.5

1,039.2(2.0%)

Lapse and surrender rate

3.27%

3.11%

(0.16pt)

Policy amount in force

32,897.5

34,118.5+3.7%

Annualized premiums from newpolicies

32.0

34.9

+9.1%

Of which, third-sector
products

7.7

7.9

+3.3%

Annualized premiums frominsurance in force

558.4

589.6

+5.6%

Of which, third-sector
products

129.6

136.6

+5.4%

(Billions of yen)

FY09.1H

ChangeFY10.1H

Gains from investment, net(General account)

42.6

65.4

+53.3%

Core profit

28.5

26.8

(6.1%)

Negative spread

8.8

4.1

(53.4%)

Solvency Margin Ratio

09.9.30

10.3.3110.9.30

2,433.8%

2,637.3%

2,992.8%

Change from
10.3.31(Reasons for changes)
 Increased, due mainly to favorable sales of family
income insurance, which is life insurance with disability
benefit, which trend has continued since the 2H FY09.

 Decreased due to the lowering lapse and surrender
rates in most products, mainly in term life insurance Increased, owing mainly to favorable sales ofendowment insurance and living benefit insurance.

 Increased due primarily to higher gains on sale ofsecurities in line with the shift from investing in bonds
with short terms to maturity to those with ultralongterms, as well as an increase in interest income anddividends
 Declined owing primarily to a change from the previous
year’s reversal of policy reserve for minimum
guarantee for variable life insurance to a provision in
the current period, despite increases in income frominsurance premiums and interest income anddividends.

＋355.5pt

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as thetotal of individual life insurance and individual annuities.
*2 The lapse and surrender rate is calculated without offsetting policies that are reinstated.

4Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

Sony Life Operating Performance (1)New Policy Amount

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

New policy amount

Number of new policies

Annualized premiums from new policies

Of witch, third-sector(Thousands of policies)

30

+6.9%

276

264

25,0002.5(Billions of yen)

295

(Trillions of yen)

40

2.06
20,000
2.0

1.89

34.9
+9.1%

35

32.0

30.9
1.81

30

20

+13.7%

25

15,0001.5

20
10,000
1.0

15

10

+3.3%

10
5,000
0.5

5

0

0
FY08.1H

FY09.1H

6.5

7.7

7.9

FY09.1H

FY10.1H

0

FY10.1H

FY08.1H

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

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

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

Policy Amount in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)
Policy amount in force

Annualized premiums from insurance in force

Number of policies in force

Of which, third sector(Millions of policies)(Trillions of yen)
+6.7%

50

(Billions of yen)

5.17

600

5.01

4.84

573.3
558.4

589.6

+5.6%
+2.8%

5
+3.3%

500

40
+3.7%

32.8

34.1

33.4

4
400

+1.9%

30

3
300

20

2

200
+5.4%

10

0
09.9.30

10.3.31

1

100

0

0

10.9.30

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

129.6

133.0

09.9.30

10.3.31+2.7%

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

5

136.6

10.9.30

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

Solvency Margin Ratio(Individual Life Insurance + Individual Annuities)＜Annual・1H＞
(%)

3,000

(%)

Lapse and surrender rate
(Annual)10+355.5pt

Lapse and surrender rate (1H)

2,992.8
2,500

8

6.79

2,637.3
2,433.8

7.21

2,000

(Annual)

6
1,500

4

(0.16pt)

3.11

2

3.27

(1H)

1,000

3.11

500

0

0
FY08

FY09

09.9.30FY1010.3.3110.9.30*Figures for lapse and surrender rates are calculated
without offsetting policies that are reinstated.

Sony Life Operating Performance (4)Ordinary Profit

Income from Insurance Premiums(Billions of yen)(Billions of yen)

371.0

400

327.0

60

50.0

339.3
+9.3%

50
+37.3%

300

40

36.4

30

200

20

19.9

100

10
0

0
FY08.1H

FY09.1H

FY08.1H

FY10.1H

FY09.1H

FY10.1H

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

6

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

20

28.5

30

26.8
(6.1%)

15
20

16.5

10.6
10

8.8

10

(53.4%)

4.1

5

0

0
FY08.1H

FY09.1H

FY10.1H

FY08.1H

FY09.1H

FY10.1H

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

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

Number of Independent Agents(Number)(Number)

2,500

4,036
4,000

4,019

3,971
3,891

(17)

2,112

2,080

2,089

2,000

2,072
(17)

3,500
1,500

3,000
0

1,000
0

09.3.3109.9.30

10.3.3110.9.30

09.3.317

09.9.30

10.3.3110.9.30

Sony Life Operating Performance (7)Breakdown of General Account Assets (Based on Real Status)
10.3.3110.9.30<Asset management review>(Billions of yen)Japanese government and corporate bonds:
Continued to accumulate ultralong-term bonds during
2Q FY10.

Amount%Amount%3,310.4

84.6%

3,625.0

88.0%

CBs

13.2

0.3%

-

-

Japanese stocks

72.5

1.9%

63.2

1.5%

Foreign securities

75.2

1.9%

68.5

1.7%

CBs: No balance (as of September 30, 2010)

Policyholder loans

127.5

3.3%

131.9

3.2%

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

Real estate

79.9

2.0%

79.1

1.9%

Japanese governmentand corporate bonds(excl. CBs)

<Lengthened
asset duration><L

Cash and call loans

116.4

3.0%

54.9

1.3%

Other

117.4

3.0%

97.6

2.4%

3,912.9

100.0 %

4,120.6

100.0%

Total

09.3.3113.6 years

10.3.3117.6 years

10.9.30

19.3 years

Amounts for individual items included in monetary trusts(Japanese government and corporate bonds, CBs, Japanesestocks and other) have been broken down into their original
investment categories.
* The breakdowns shown at left are different from those shownin Chapter 3, “(1) Portfolio of General Account Assets” onpage 5 of the “Summary Information on Sony Life’s Financial
Results for the Six Months Ended September 30, 2010,”
announced by Sony Life.

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit(Billions of yen)

37.1
33.9

FY09.1H

Change

33.9

37.1

+3.1

+9.2%

Underwriting income

33.6

36.7

+3.0

+9.2%

Investment income

0.3

0.3

+0.0

+8.9%

32.4

36.4

+3.9

+12.2%

Underwriting expenses

24.5

27.9

+3.3

+13.8%

Investment expenses

0.0

－

(0.0)

(100.0%)Operating, general andadministrative expenses

7.8

8.4

+0.5

+7.5%

Ordinary profit

1.5

0.6

(0.8)

(56.0%)Net income

1.0

0.3

(0.6)

(62.2%)

Ordinary revenues+9.2%

Ordinary expenses

1.5(56.0%)

0.6
FY09.1H

FY10.1H

FY10.1H(Billions of yen)Ordinary revenues increased, but ordinary profit
decreased, year on year.
Ordinary revenues increased, due to an increase in
net premiums written led by a growing number of
in-force policies primarily for automobile insurance.
Ordinary profit decreased, due mainly to an increasein net losses paid for automobile insurance, resulting
from a rising number of car accidents, which offset
the positive impact of increased ordinary revenues.

(Billions of yen)

Change from 10.3.31

09.9.30

10.3.3110.9.30

Underwriting reserves

55.4

58.1

62.3

+4.2

+7.3%

Total net assets

14.8

15.4

15.8

+0.4

+2.6%

0.0

0.0

0.0

+0.0

+49.3%

93.3

98.3

103.9

+5.6

+5.7%

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

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

8

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

FY09.1H

FY10.1H

Direct premiums written

33.4

36.4

+8.8%

Net premiums written

33.6

36.7

+9.2%

Net losses paid

16.1

19.0

+17.6%

1.2

0.3(70.9%)Net loss ratio

54.0%

58.2%

+4.2ptNet expense ratio

25.2%

24.7%

(0.5pt)Combined ratio

79.2%

83.0%

+3.8ptUnderwriting profit

Change Increased, owing to an increase in thenumber of policies in force for automobile
insurance.
 Increased, owing to a rising number of car
accidents.

 Decreased, due to increased net
premiums written which offset thenegative impact of an increase inunderwriting costs
 Increased, due to an increase in thenumber of policies in force for automobile
insurance.

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.

09.9.30
Number of policies in force
Solvency margin ratio

Change from
10.3.3110.3.3110.9.30

1.22 million

1.27 million

1.33 million+0.05 million

1,033.6%

1,018.5%

1,010.3%(8.2pt)+4.5%

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

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

Net Premiums Written

FY09.1H

FY09.1H

ChangeFY10.1H

137

Fire

ChangeFY10.1H(Millions of yen)

(Millions of yen)71

(47.6%)

Fire

6

3

(44.0%)

Marine76(6.0%)－－－

Personal accident*

3,442

3,551

+3.1%

Personal accident*

3,563

3,679

+3.3%

Voluntary automobile

29,86832,783+9.8%

Voluntary automobile

29,75232,648

+9.7%

－

－

－

291

369

+26.8%

33,44836,406+8.8%

33,62036,707+9.2%

MarineCompulsory
automobile liability
Total

Net losses paid

Compulsory
automobile liability
Total*SURE, medical and cancer insurance is included in personal accident.
FY09.1H

FY10.1H

Change(Millions of yen)
Fire

0

0

(26.4%)

Marine17+393.5%705

776+10.1%

15,216

17,927+17.8%

258

319+23.9%

16,181

19,031+17.6%

Personal accident*
Voluntary automobile
Compulsory
automobile liability
Total

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

9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

Ordinary Profit(Billions of yen)

1.33

50

1.22

1.4

(Billions of yen)
2

+8.9%

1.2

1.5

36.7

40

33.6

0.3

0.3

+9.2%

1.5

1

3.6

3.5

30

0.8

(56.0%)

1

20

0.6

32.6

29.7

0.6
0.4

0.5

10
0.2
0

0
FY09.1H

0
FY09.1H

FY10.1H

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

FY10.1H

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

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

Net Expense Ratio + Earned/Incurred Loss Ratio
Earned/incurred loss ratio

Net expense ratio

Net expense ratio(%)

Net loss ratio

(%)

94.2

+5.1pt

100

90.2

91.9

100
+3.8pt

89.1

80

80

81.7

83.3

83.0

79.2

+5.6pt

69.5

60
63.5

60

63.9

65.8

40

20

+4.2pt

57.2
55.0

58.2

54.0

40

26.7

20

(0.5pt)

26.1

25.2

24.7

FY09.1H

FY10.1H

0

26.7

26.1

(0.5pt)

25.2

24.7

FY09.1H

FY10.1H

0
FY08

FY09

FY08

FY09

Earned/incurred loss ratio is equal to the ratio of the sum of net losses paid, loss
adjustment expenses and accumulation in provision for reserve for outstanding
losses to earned premiums.
*Note that earthquake insurance and compulsory automobile liability

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.

insurance are excluded from the above calculation.

10

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

1,200
(8.2pt)1,033.6

1,018.5

1,010.3

800

400

0
09.9.30

10.3.3110.9.30

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

15.2

+1.1%

1.9

FY09.1H

Ordinary profit

15.4

1.6

(12.9%)

FY10.1H(Billions of yen)

FY09.1H

FY10.1H

ChangeOrdinary revenues

15.2

15.4

Gross operating profit

7.7

8.3

+0.6

+7.8%

Net interest income

6.5

6.3

(0.2)

(3.6%)Net fees and commissions

0.01(0.07)(0.08)－Net other operating income

1.1

2.0

+0.9

+81.6%

General andadministrative expenses

5.6

6.3

+0.6

+12.2%

Ordinary profit

1.9

1.6

(0.2)

(12.9%)Net income

1.1

0.8

(0.2)

(19.5%)Net operating profit

2.1

1.8

(0.2)

(11.9%)

+0.1

+1.1%

(Billions of yen)Ordinary revenues remained roughly flat and ordinary profit decreased
year on year.
Gross operating profit increased ¥0.6 billion year on year due to anincrease in net other operating income.
- Net interest income decreased reflecting lowering of interest
rate which offset an increase in interest income on loans led by thegrowing balance of mortgage loans.
- Net other operating income increased ¥0.9 billion, mainly reflecting
improved investment performance.
Net operating profit decreased ¥0.2 billion year on year due to anincrease in general and administrative expenses of ¥0.6 billion.
Customer assets increased ¥73.5 billion from March 31, 2010, of
which deposit balance increased ¥74.7 billion.

(Billions of yen)

Change from
10.3.3109.9.30

10.3.3110.9.30

Securities

804.5

880.1

958.3

+78.1

+8.9%

Loans

534.3

586.6

636.4

+49.7

+8.5%

Deposits

1,334.8

1,510.0

1,584.8

+74.7

+5.0%

Customer assets

1,431.3

1,610.0

1,683.6

+73.5

+4.6%

Total net assets

57.4

58.9

58.3

(0.6)

(1.1%)

(0.0)

0.9

1.1

+0.2

+32.6%

1,445.1

1,612.1

1,700.7

+88.5

+5.5%

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

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

11

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

09.9.30

10.3.3110.9.30

Change from 10.3.31

Customer assets increased ¥73.5 billion
from March 31, 2010, of which total of
deposit increased ¥74.7 billion. Foreign
currency deposit increased ¥18.0 billion
under the circumstance where sharp hikein the yen might have the negative impact
on the foreign exchange conversion.

Customer assets

1,431.3

1,610.0

1,683.6

+73.5

+4.6%

Deposits

1,334.8

1,510.0

1,584.8

+74.7

+5.0%

Yen

1,020.8

1,184.9

1,241.7

+56.7

+4.8%

Foreigncurrency

314.0

325.0

343.0

+18.0

+5.5%

Investment trusts

96.5

100.0

98.8

(1.1)

(1.2%)

534.3

586.6

636.4

+49.7

+8.5%

525.9

555.1

581.3

+26.2

+4.7%

8.4

31.5

55.0 (*1)+23.5+74.6%

750

796

828

+31

+4.0%

13.41%

12.09%

11.76%

Loans
Mortgage loans
OthersNumber of accounts(thousands)
Capital adequacy
ratio(*2)(domestic criteria)

 Investment trusts decreased reflecting adecline in reference price Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

(0.33pt)*1 Loans in others include corporate loans of ¥46.8 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P14.
Line item amounts are truncated below ¥100 million; numbers of accounts are truncated below 1,000 accounts; percentage change figures are rounded.

Overview of Performance:
Sony Bank (Non-consolidated) (2)■<Reference> On Managerial Accounting Basis(Billions of yen)
Gross operating profit
Net interest income*1①

FY09.1H

FY10.1H<Reference>
Net Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Gross Operating Profit (Core Profit)

Change

7.7

8.2

+0.5

+7.3%

6.6

7.2

+0.5

+9.0%

Net operating profit (core profit)
Gross operating profit (core profit)(Billions of yen)

Net fees andcommissions *2 ②

0.6

Net other operating
income *3

0.4

0.5

+0.1

＋26.8%

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

7.2

7.7

+0.4

+6.2%

Operating expenses andother expenses ③

5.6

6.4

+0.8

+15.1%Net operating profit(core profit)= (A)－③

1.6

1.2

(0.3)

(23.8%)

0.5

(0.1)

(22.4%)

Operating expenses and other expenses

8

7.2

+6.2%

6.4

7
6

●Managerial accounting basis
The following adjustments are made to the figures on a financial accounting basis toaccount for profits and losses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.
●Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

7.7

5.6

+15.1%

5
4
3
2

1.6

(23.8%)

1.2

1
0
FY09.1H

FY10.1H

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

12

Sony Bank Operating Performance (1)<Reference>＜参考＞ Interest Spread (Managerial Accounting Basis)
Interest spread

Yield on financing

Yield on investment

(%)

2.00

1.53

1.50

1.49

1.50

0.92

0.92

0.90

0.61

0.57

FY09.2Q

FY09.3Q

1.00

1.44

1.44

0.86

0.87

0.59

0.58

0.57

FY09.4Q

FY10.1Q

FY10.2Q

0.50

0.00

Notes: Interest spread = Yield on investment – Yield on financing
Yield on investment includes primarily gains or losses from currency swap transactions in net other operating income.

Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
and Number of Accounts
Yen deposits
Foreign currency deposits
Number of accounts (thousands)

828

2,000

Mortgage loans

Investment trusts(Billions of yen)

796

Loans
Others*Including corporate loans of ¥46.8billion.

(Billions of yen)
800

+31

750

636.4

1,683.6
1,610.0
1,500

+73.5

+49.7

98.8

586.6

600

55.0*

534.3

1,431.3
343.0

400
1,000
Deposits total:¥1,584.8 billion

581.3

1,241.7
200

500

0

0

09.9.30

10.3.3110.9.30

09.9.30

10.3.3110.9.30

Line item amounts are truncated below ¥100 million; number of accounts are truncated below 1,000 accounts.

13

Sony Bank Operating Performance (3)Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)

Balance of Securities by Credit Ratings
AAA
AA
BBB
BB
(Billions of yen)
1,200

A
Other

(%)
20

958.3

1,000

880.1

15

+78.1

804.5

(0.33pt)

800

11.76

13.41
12.09

10

600

400

5

200
0
09.9.30

009.9.30

10.3.3110.3.3110.9.30* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Law of Japan, in accordance with Financial Services
Agency of Japan (“FSA”) public ministerial announcement No. 19 of 2006. The capital
adequacy ratio as of and after December 31, 2008, newly adopted the special exception of
the standard mentioned above, in accordance with the FSA public ministerial announcement
No. 79 of 2008.

10.9.30

Amounts are truncated below ¥100 million.

14

I. Consolidated Operating Results for the Six Months
Ended September 30, 2010

3. Consolidated Financial Forecast
for the Year Ending March 31, 2011

Consolidated Financial Forecast
for the Year Ending March 31, 2011
(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)
FY09

Consolidated ordinary revenues

FY10

Change(Forecast)

FY10 forecast
vs. FY09 actual

Consolidated Ordinary Revenues

978.9

974.0

(0.5%)

Life insurance business

882.0

871.3

(1.2%)

Non-life insurance business

68.1

72.7

+ 6.6 %

Banking business

30.5

30.6

+ 0.3%

1,000(Billions of yen)
1,200

84.3

74.0

(12.3%)

800

Life insurance business

79.7

69.6

(12.8%)

600

Non-life insurance business

2.5

2.2

(14.2%)

Banking business

1.9

2.8

+ 45.2%

48.1

40.0

(16.9%)

Consolidated ordinary profit

Consolidated net income

Banking business
Non-life insurance businessLife insurance business

978.9

974.0

(Forecast)

400
200
0

※SFH’s consolidated financial forecast for the fiscal year ending March 31, 2011, is unchanged from those announced on May 13, 2010.

FY09

FY10

■Life insurance business
Operating results exceed the amounts in our forecast for 1H FY10. However, our forecast for FY10 remains
unchanged from the previous announcement, due mainly to an expected increase in operating expenses anduncertainty about the financial market environment for 2H FY10.

Consolidated Ordinary Profit(Billions of yen)100

■Non-life insurance business

90

Ordinary revenues for FY10 are expected to rise year on year, as we expect steady business expansion mainly in its
mainstay automobile insurance. Ordinary profit is expected to decrease year on year, due mainly to expected
increases in the loss ratio and the expense ratio in line with the planned reinforcement of the corporate system andinfrastructure based on the expected expansion of its business operations. These forecasts for FY10 remains
unchanged from the previous announcement.

80■Banking Business

40

Ordinary revenues for FY10 are expected to slightly increase year on year, as interest income is expected to rise due
to expanding business operations, although an influence of the worldwide reductions in interest rates still remains.
Ordinary profit is expected to grow year on year, as gross operating profit, especially net interest income, is expected
to increase. These forecasts for FY10 remains unchanged from the previous announcement.

Banking business
Non-life insurance businessLife insurance business

84.3
74.0

70
60
50

(Forecast)

30
20
10
0
FY09

15

FY10

I. Consolidated Operating Results for the Six Months
Ended September 30, 2010

4. Appendix

Recent Topics

AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products:
1) Winning Road (Variable Individual Annuity - Guaranteed Lifetime Withdrawal Benefit (GLWB) type)2) My History (Variable Individual Annuity - Guaranteed Lifetime Withdrawal Benefit (GLWB) type)3) Victory Run (Variable Individual Annuity - Guaranteed Minimum Accumulation Benefit (GMAB) type)
Sales Channels: Lifeplanner sales employees and affiliated Banks(The Tokyo star bank, SMBC, Minato bank, Fukushima bank, Chiba Kogyo Bank) *As of November. 15, 2010
Sales results: Number of new policies: 352 new policies, New policy amount: ¥3,401 million,(FY10.1H) Number of policies in force: 802 policies, Policy amount in force: ¥9,999 million,

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 38% of the amount of
new mortgage loans for FY10.1H.
* Sony Life started handling banking agency business in Jan. 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY10.1H.
* Sony Life started handling automobile insurance in May 2001.

16

Highlights<Highlights Since FY10.2Q>
2010-7-12

AEGON Sony Life Insurance's variable individual annuity product to be offered at Chiba Kogyo Bank

2010-7-26

Sony Bank launched foreign currency delivery service

2010-9-13

Sony Bank began offering mortgage loans for used condominiums

2010-9-16

Sony Life opened the second one-stop insurance Shop, "LIPLA"

2010-10-4

Sony Bank entered tie-up with Ohkuraya Juutaku in mortgage loans

2010-11-2

Sony Life began offering new products: Whole life nursing-care insurance (reduced surrender value),
lump- sum payment nursing-care rider, and discount rider for nonsmokers and others in excellent health for
decreasing term life insurance

2010-11-8

Sony Bank began providing a service to accept dividends on investment trusts

Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)Valuation gains (losses) of trading-purpose securities(Billions of yen)

09.9.30

09.12.31

10.3.3110.6.30

10.9.30

Net valuation
Net valuation
Net valuation
Net valuation
Net valuation
Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses) Balance sheet gains (losses)
amountrecorded inamountrecorded inamountrecorded inamountrecorded inamountrecorded inincomeincomeincomeincomeincome
0.7

5.6

0.3

5.6

-

5.7

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

17

-

-

-

-

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

10.9.30

10.3.31③Solvency
Margin10.9.30

10.3.3110.9.30

Total shareholders’ equity

177.3

199.3

177.3

199.3

170.3

Net unrealized gains on other securities, net of taxes

15.4

24.6

15.4

24.6

－

－

－

－

－

－

33.0

46.0

(1.4)

(1.4)

(1.4)

(1.4)

－

－

Net unrealized gains (losses) on available-for-sale securities
Land revaluation, net of taxes

197.9

Reserve for price fluctuations

－

－

9.6

13.0

9.6

13.0

Contingency reserve

－

－

48.4

50.1

48.4

50.1

Reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate
－

－

2.6

2.6

1.6

1.6

Excess amount of policy reserves based on Zillmer method

－

－

316.5

322.8

316.5

322.8

Unallotted portion of reserve for policyholders' dividends

－

－

2.3

3.1

2.3

3.1

Future profits

－

－

－

－

1.0

1.0

Deferred tax assets

－

－

－

－

47.2

63.6

Unrealized gains (losses) on held-to-maturity bonds－－(20.4)

221.6

－

－

Deferred tax liabilities for available-for-sale securities

－

－

12.8

18.3

－

－

191.3

222.4

563.4

854.4

630.2

699.5

Total

※Real net assets excluding net unrealized gains/losses on held-to-maturity securities and on policy reserve matching bonds, are¥583.8 billion as of March 31, 2010, and ¥632.7 billion as of September 30, 2010.

Notes③After estimateddistributed income
deducted③Before tax x 90%②Before tax（after revaluation）③Before tax(Before revaluation) X85%

②Before tax

Amounts are truncated below ¥100 million.

Sony Life’s Changes in Solvency Margin Ratio(Billions of yen)
Category

09.9.30

Total solvency margin(A)

Common stocks, etc

09.12.31

10.3.3110.6.30

10.9.30

600.7

625.6

630.2

666.6

699.5

152.9

163.3

170.3

179.9

197.9

Reserve for price fluctuations

6.3

7.9

9.6

11.2

13.0

Contingency reserve

46.9

47.8

48.4

49.2

50.1

Reserve for possible loan losses

0.0

0.0

0.0

0.0

0.0

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

41.6

43.0

33.0

48.4

46.0

4.8

4.8

1.6

1.6

1.6

309.4

312.8

316.5

319.3

322.8

Unallotted portion of reserve for policyholders' dividends

0.3

1.7

2.3

2.7

3.1

Future profits

－

－

1.0

1.0

1.0

Deferred tax assets

38.1

44.0

47.2

52.9

63.6

Subordinated debt

－

－

－

－

－

Deductible items

－

－

－

－

－

49.3

48.6

47.7

47.4

46.7
19.6

Net unrealized gains on real estate
multiplied by 85% if gains or 100% if losses
Excess amount of policy reserves based on Zillmer
methodTotal risk

(B)

18.8

19.0

19.1

19.4

Third-sector insurance risk

R8

7.1

7.1

7.0

7.1

7.2

Assumed interest rate risk

R2

11.2

11.3

11.3

11.4

11.4

Asset management risk

R3

21.4

20.2

18.9

17.9

16.6

Business management risk

R4

1.3

1.3

1.2

1.2

1.2

Minimum guarantee risk

R7

7.6

7.8

8.0

8.3

8.6

2,433.8%

2,570.9%

2,637.3%

2,810.0%

2,992.8%

Insurance risk

R1

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

Amounts are truncated below ¥100 million.

18

II. Other Information
1. Changes in scope of consolidation during the period (changes in specified subsidiaries accompanying changes
in scope of consolidation)
Not applicable.
2. Changes in accounting policies, procedures and presentation(Asset retirement obligations)
As ASBJ Statement No. 18 “Accounting Standard for Asset Retirement Obligations” (March 31, 2008) and
ASBJ Guidance No. 21 “Guidance on Accounting Standard for Asset Retirement Obligations” (March 31, 2008)
went into effect for fiscal years beginning on or after April 1, 2010, SFH applied these guidelines from the six
months ended September 30, 2010.
The adoption of these guidelines resulted in a decrease of ¥16 million in ordinary profit, a decrease of ¥307
million in net income before taxes, and an increase of ¥659 million in asset retirement obligations.

19

Ⅲ. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of September 30, 2010

As of March 31, 2010

AssetsCash and due from banks
Call loans and bills bought
Monetary claims purchased
Monetary trusts
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersDue from reinsurers
Foreign exchanges
Other assets
Deferred tax assets
Reserve for possible loan losses¥ 93,492
63,100—300,697
4,856,806
768,757
81,31921,407
1,252
20,154818
4,373
72,827
33,125(1,243)¥ 103,649
146,879
3,292
300,7434,488,458
714,486
81,931
20,687
1,503
19,184205
5,100
101,684
34,987(1,019)Total Assets¥6,295,482¥6,001,088

20

(Millions of yen)
As of September 30, 2010
Liabilities
Policy reserves and others
Reserve for outstanding claims
Policy reserves
Reserve for policyholders’ dividends
Due to agencies
Due to reinsurers
Deposits
Call money and bills soldBorrowed money
Foreign exchanges
Other liabilities
Reserve for employees’ bonuses
Reserve for employees’ retirement benefits
Reserve for directors’ retirement benefits
Special reserves
Reserve for price fluctuations
Reserve for financial products transaction liabilities
Deferred tax liabilities
Deferred tax liabilities on land revaluation

As of March 31, 2010

¥ 4,273,572
42,2244,226,156
5,192
1,334
628
1,583,708
10,0002,000
3190,5002,355
17,315395
13,107
13,10330706¥ 4,088,186
39,151
4,043,958
5,076
1,445
853
1,509,295
10,0002,000
2090,6992,496
15,915
360
9,667
9,665
2
0
706

5,995,656

5,731,648

Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes
Land revaluation, net of taxes
Foreign currency translation adjustments
Total valuation and translation adjustments

19,900195,277
62,245
277,422
26,969(2,816)(1,475)(273)
22,403

19,900195,277
39,350254,527
17,511(960)(1,475)(163)
14,912

Total Net Assets

299,825

269,439¥6,295,482¥6,001,088

Total Liabilities
Net Assets

Total Liabilities and Net Assets21

2. Consolidated Statements of Income(Millions of yen)
For the six months ended
September 30, 2009
Ordinary Revenues

For the six months ended
September 30, 2010

¥481,247
431,960¥496,209

339,141

370,748

338,261

369,726

879

1,021

91,646

71,05632,95842,215

Income from monetary trusts, net

9,599

4,346

Gains on sale of securities

9,771

24,492

Gains on redemption of securities

1,096

—

37

1

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

Other 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
Investment income
Interest income and dividends

443,638

38,183

—

1,172

1,834

33,992

37,10633,63636,722

33,62036,707

15

14

341

371

342

383

Gains on sale of securities

7—

Gains on redemption of securities

6

2

Transfer to interest and dividends on deposits of premiums

(15)

(14)

Other ordinary income

14

12

15,294

15,464

11,73911,785Interest income on loans

5,822

6,090

Interest income and dividends on securities

5,599

5,615

Interest income on call loans and bills bought

45

18Interest income on deposits with banks

1230

Interest income on interest rate swaps

0—

Other interest income

259

31

Fees and commissions

983

963

Other operating income

2,561

2,694

2,348

1,790

212

904

9

20

Ordinary Revenues from the Banking Business
Interest income

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

22

(Millions of yen)
For the six months ended
September 30, 2009

For the six months ended
September 30, 2010

Ordinary Expenses¥441,789¥444,654

Ordinary Expenses from the Life Insurance Business

396,052

394,719

134,424

132,056
35,577
3,602
15,95375,041
824

Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other payments

32,731
3,205
15,83380,725
852

Reinsurance premiums

1,076

1,056

Provision for policy reserves and others

197,370

Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends
Investment expenses

2,430
194,9382
10,59247,502

179,383
1,406
177,9698
27,057
27
703
348
23
163
17
1,236
3,117
21,42049,011

6,162
32,231

7,210
36,217

24,374

27,764

16,181
1,972
435
1,086
4,698
0

19,031
2,343
485
1,666
4,236
0

13

—

Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Foreign exchange losses, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses

15
5,334
—
315
141
0
1,349
3,435
—

Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business
Underwriting expenses
Net losses paid
Loss adjustment expenses
Net commission and brokerage fees
Provision for reserve for outstanding losses
Provision for underwriting reserves
Other underwriting expenses
Investment expenses
Losses on sale of securities

12—

Losses on redemption of securities

1

—

7,836

8,422

6

29

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

23

(Millions of yen)
For the six months ended
September 30, 2009
Ordinary Expenses from the Banking Business

For the six months ended
September 30, 2010

13,505

13,717

5,162
4,368
15

5,475
4,427
5

Interest on borrowed money

25

25

Interest expenses on interest rate swaps

753

1,016

0

0

Fees and commissions

588

614

Other operating expenses

1,429

639

General and administrative expenses

6,162

6,662

161

324

39,45751,554

—
—

0
0

2,921
183

3,780
50

4

0

—

290

2,732

3,438

Provision for reserve for price fluctuations

2,732

3,438

Provision for Reserve for Policyholders’ dividends

224

345

Income Before Income Taxes

36,31247,428

Income Taxes

12,92518,007- Current

7,064

20,870- Deferred

5,860(2,862)

Interest expenses
Interest expenses on deposits
Interest expenses on call money and bills sold

Other interest expenses

Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on disposal of fixed assets
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Provision for special reserves

Income Before Minority Interests

29,42023,386Net Income

24

29,4203. Consolidated Statements of Changes in Net Assets(Millions of yen)
For the six months ended
September 30, 2009

For the six months ended
September 30, 2010

Shareholders’ Equity
Common stock
Balance at the end of the previous period

19,90019,900——19,90019,900195,277

195,277——

195,277

195,277(2,251)39,350

Dividends from surplus(6,525)(6,525)

Net income

23,38629,420Total changes during the period

16,861

22,895

Balance at the end of the current period

14,60962,245

212,925

254,527

Dividends from surplus(6,525)(6,525)

Net income

23,38629,420Total changes during the period

16,861

22,895

Balance at the end of the current period

229,786

277,422

Changes during the period
Total changes during the period
Balance at the end of the current period
Capital surplus
Balance at the end of the previous period
Changes during the period
Total changes during the period
Balance at the end of the current period
Retained earnings(deficits)
Balance at the end of the previous period
Changes during the period

Total shareholders’ equity
Balance at the end of the previous period
Changes during the period(Continued)

25

(Millions of yen)
For the six months ended
September 30, 2009

For the six months ended
September 30, 2010

Valuation and Translation Adjustments
Net unrealized gains(losses) on other securities, net of taxes
Balance at the end of the previous period(4,853)

17,511

Net changes of items other than shareholders’ equity

27,667

9,457

Total changes during the period

27,667

9,457

Balance at the end of the current period

22,81426,969(1,449)(960)

Net changes of items other than shareholders’ equity

485(1,856)

Total changes during the period

485(1,856)

Balance at the end of the current period(964)(2,816)(1,475)(1,475)

Total changes during the period——

Balance at the end of the current period
Foreign currency transaction adjustments(1,475)(1,475)

Balance at the end of the previous period

(248)

(163)

Net changes of items other than shareholders’ equity

85

(110)

Total changes during the period

85

(110)

Balance at the end of the current period

(163)

(273)

(8,028)14,912

Net changes of items other than shareholders’ equity

28,238

7,491

Total changes during the period

28,238

7,491

Balance at the end of the current period

20,21022,403204,897

269,439

Changes during the period

Net deferred losses on hedging instruments, net of taxes
Balance at the end of the previous period
Changes during the period

Land revaluation, net of taxes
Balance at the end of the previous period
Changes during the period

Changes during the period

Total valuation and translation adjustments
Balance at the end of the previous period
Changes during the period

Total Net Assets
Balance at the end of the previous period
Changes during the period
Dividends from surplus(6,525)(6,525)

Net income
Net changes of items other than shareholders’ equity

23,38628,23829,4207,491

Total changes during the period

45,10030,386

Balance at the end of the current period

249,997299,825

26

4. Segment Information
As ASBJ Statement No.17 “Accounting Standard for Disclosures about Segments of an Enterprise and Related Information”(March 27, 2009) and ASBJ Guidance No.20 “Guidance on Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” (March 21, 2008) went into effect for fiscal years beginning on or after April 1, 2010,
SFH applied these guidelines starting from the six months ended September 30, 2010.
(1) Outline of reportable segments
SFH Group’s reportable segments are components of the Group whose operating results are regularly reviewed by the Boardof Directors to make decisions about resources to be allocated to the segments and assess their performance, for which
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 own business plans and engage in business activities from which it
may earn revenues and incur expenses, under the each legal regulations of the Insurance Business Law of Japan, the Banking
Law of Japan etc.
The SFH Group consists of three reportable segments, the life insurance business, the non-life insurance business, andthe 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. and Sony Bank Securities Inc.
(2) Segment Information by reportable segment(i) For the six months ended September 30, 2009
Millions of yen
Life insurance
business
Ordinary Revenues:
External customers
Intersegment
Total
Ordinary Expenses
Ordinary Profit¥ 431,960
683
432,643396,246¥ 36,396

Non-life
insurancebusiness¥ 33,992
033,99332,455¥ 1,537

Bankingbusiness¥ 15,294
27
15,322
13,846¥ 1,475

27

Total¥ 481,247
711
481,958
442,549¥ 39,409

Elimination

Consolidated¥ (711)
(711)
(760)
¥ 48

¥ 481,247
481,247
441,789¥ 39,457

(ii) For the six months ended September 30, 2010
Millions of yen
Non-life
Banking
insurancebusinessbusinessLifeinsurancebusiness
Ordinary Revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings ofaffiliates (losses)
Investments in affiliates
Increase in Tangible
fixed assets andIntangible fixed assets

Total¥443,638
891
444,530
49,594
4,486,836¥37,106
1
37,107675
103,967¥15,464
14
15,4781,215
1,700,705¥496,209
907
497,116
51,485
6,291,510

2,602

283

717

3,602

42,42727

383-

11,785
5,475

54,596
5,502(469)
11,464--(469)
11,464¥ 2,011¥ 1,070¥ 569¥ 3,651

Reconciliations of the totals of each segment item to corresponding enterprise amounts

Totals of each reportable segment
Adjustments of intersegment transaction
Ordinary revenues in income statement

Millions of yen¥497,116(907)¥496,209

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Ordinary profit in income statement

Millions of yen¥51,4856
62¥51,554

Totals of each reportable segment
Adjustments of intersegment transaction
Unallocated amount to reportable segment
Assets in balance sheets

Millions of yen¥6,291,510(1,158)5,130¥6,295,482

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

Millions of yen
Consolidated
Total
Adjustments
Financial
Statements¥ 3,602¥ (0)¥ 3,60254,596(211)
54,384
5,502
(0)
5,502
(469)
11,464
¥

3,651

¥

28

-

(469)
11,464 30¥ 3,652

5. Per Share Information
Net income per share is based on the weighted-average number of shares of common stock outstanding during the period.
For the six months ended September 30, 2009 and 2010, net income per share was ¥10,752.29 and ¥13,526.64. There wereno potentially dilutive securities. Net assets per share, based on the number of shares of common stock outstanding as ofMarch 31 and September 30, 2010, were ¥123,880.11 and ¥137,851.03.
The basis for this calculation for the six months ended September 30, 2009 and 2010 is net income of ¥23,386 millionand ¥29,420 million, the entire amounts of which are applicable to common stock. The weighted-average number of shares
outstanding for the six months ended September 30, 2009 and 2010, was 2,175 thousand.

29

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 for the six months ended September 30, 2010, includes Sony Financial Holdings Inc., Sony Life InsuranceCo., Ltd., Sony Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation and Sony Bank Securities Inc. It also
includes AEGON Sony Life Insurance Co., Ltd., and SA Reinsurance Ltd. as affiliated companies accounted for under the equity
method. The scope of consolidation for the six months ended September 30, 2009, does not include SA Reinsurance Ltd.

On October 29, 2010, Sony Corporation announced its consolidated financial results for the second
quarter ended September 30, 2010. SFH Group companies constitute the majority of Sony Group’s
Financial Services segment. However, the scope of Sony Group’s Financial Services segment differs fromthe scope of SFH’s consolidated results. For the scope of Sony Group’s Financial Services segment,
please refer to the October 29, 2010, news release by Sony Corporation.
This Consolidated Financial Summary contains statements concerning the current plans,
expectations, strategies and beliefs of the Sony Financial Holdings Group (“SFH Group”). Anystatements contained herein that pertain to future operating performance and that are not historicfacts are forward-looking statements. Forward-looking statements may include—but are not limited
to—statements using words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,”“predict,” and “possibility” that describe future operating activities, financial performance, events orconditions. Forward-looking statements, whether spoken or written, are based on judgments made by
the management of SFH Group based on information that is currently available to it. As such,forward-looking statements are subject to various risks and uncertainties, and actual results may vary
substantially from those expressed or implied in forward-looking statements. Consequently,
investors are cautioned not to place undue reliance on forward-looking statements. SFH Group
disclaims any obligation to revise forward-looking statements in light of new information, future
events or other findings.

For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp

Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/index_en.html

30