Consolidated Financial Summary(Japanese GAAP)
for the Nine Months Ended December 31, 2011

February 14, 2012

Company name:Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/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 nine months ended December 31, 2011
(1) Operating results
Ordinary Revenues
Ordinary Profit
For the nine months ended
December 31, 2011
For the nine months ended
December 31, 2010

Note: Comprehensive Income:Millions of yen% change

786,368

5.4

746,017

3.5

Millions of yen

Net Income% change

Millions of yen% change

53,892（22.3）

22,690（40.9）

69,36618.9

38,382

13.4

For the nine months ended December 31, 2011: ¥40,984 million;
For the nine months ended December 31, 2010: ¥38,205 million;

Net Income per ShareNet Income per Share(Fully Diluted)

Yen

Yen

For the nine months ended
December 31, 2011
For the nine months ended
December 31, 2010

52.16

—

88.24

—

7.3 ％
－ ％

Note: Although a stock split was conducted during the three months ended June 30, 2011, net income per share for the nine months ended
December 31, 2010, was calculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of December 31, 2011

6,980,755

328,408

4.7

As of March 31, 2011

6,597,140

294,877

4.5

Notes: 1. Shareholders’ equity:

As of December 31, 2011: ¥327,095 million
As of March 31, 2011: ¥294,877 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, 2011
For the year ending
March 31, 2012
For the year ending
March 31, 2012
(forecast)

1st quarterYen

2nd quarterYen

3rd quarter
Yen

—

—

—

—

—

—

—

—

Year-end
Yen

Annual Total
Yen

20.00

20.00

20.00

20.00

Note: Although a stock split was conducted during the three months ended June 30, 2011, the dividend per share for the year ended March 31,
2011, was calculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

3. Forecast of consolidated financial results for the year ending March 31, 2012

(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues

For the year ending
March 31, 2012

Ordinary Profit

Millions of yen % change Millions of yen

1,047,000

4.5

67,000% change(12.8)Net Income per
Share

Net Income
Millions of yen

29,000% changeYen(30.5)

66.67

4. Other Information(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying
changes in scope of consolidation): None
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: Yes(b) Changes in accounting policies due to other reasons: None(c) Changes in accounting estimates: None(d) Restatements of the consolidated financial statements: None
(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2011:
435,000,000 shares
As of March 31, 2011:
435,000,000 shares(b) Number of treasury shares
As of December 31, 2011:— shares
As of March 31, 2011:— shares(c) Weighted-average number of shares
For the nine months ended December 31, 2011:
435,000,000 shares
For the nine months ended December 31, 2010:
435,000,000 shares
Although a stock split was conducted during the three months ended June 30, 2011, the total number of shares outstanding
as of March 31, 2011, the number of shares of treasury stock as of March 31, 2011, and the average number of shares
during the nine months ended December 31, 2010 were calculated assuming that the stock split was conducted at the
beginning of the previous fiscal year.

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
not subject to such quarterly review procedures.
Explanation for Appropriate Use of Forecasts and Other Notes
・Sony Financial Holdings conducted a 200-for-1 stock split on April 1, 2011.

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, 2012・・・・・・・・・・・・・・ 3

Notes Regarding Summary Information (Others)
1.

Changes in scope of consolidation during the period・・・・・・・・・・・・・・・・・ 5

2.

Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5

3.

III.

Additional Information

5

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6

2.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・8(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・11

IV.

3.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12

4.

Per Share Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 13

Attachment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・15(Attachment)
Consolidated Financial Results for the Nine Months Ended December 31, 2011

* We will upload “Guidance on the Value of Existing Business, a Component of Sony Life’s Market
Consistent Embedded Value (EV), as of December 31, 2011,” on February 14, 2012 at 15:00 (Tokyo).
Please see futher details at our website: http://www.sonyfh.co.jp/web/index_en.html* The Conference Call for explaining the SFH Group financial results will be held at 16:30(Tokyo),February 14, 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 February 14, 2012, and its Q&A summary
later on Presentation Materials page on our website.
* On February 14, 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 thenine months ended December 31, 2011. 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 nine months ended December 31, 2011 (April 1, 2011 through December 31, 2011), consolidated ordinary
revenues grew 5.4% compared with the same period of the previous fiscal year, to ¥786.3 billion, owing to increases inordinary revenues from the all businesses: life insurance, non-life insurance and banking.
Consolidated ordinary profit decreased 22.3% year on year, to ¥53.8 billion. By business segment, ordinary profit from thelife insurance and the non-life insurance businesses decreased, whereas ordinary profit from the banking business increased
year on year.
After accounting for extraordinary gains and losses, reversal of reserve for policyholders’ dividends, income taxes and otheritems, net income for the nine months ended December 31, 2011, was down 40.9% year on year, to ¥22.6 billion, due to a
decline in consolidated ordinary profit and an increase in deferred income taxes of ¥6.6 billion stemming from a reversal ofdeferred tax assets owing to the newly promulgated laws associated with the reduction in the corporate tax rate.
Segment Information by Business< Life insurance business >In the life insurance business, income from insurance premiums increased in line with steady growth in the policy amount inforce. On the other hand, investment income decreased owing to lower gains on sale of securities, reflecting the process ofshifting its bond holdings to ultralong-term bonds to reduce interest rate risk. As a result, ordinary revenues increased 5.2%
year on year, to ¥703.9 billion. Ordinary profit decreased 24.2% year on year, to ¥49.5 billion due to the aforementioned
lower gains on sale of securities, whereas insurance claims and other payments relating to the Great East Japan Earthquake
were lower than our estimates as of the end of the previous fiscal year.

< Non-life insurance business >In the non-life insurance business, ordinary revenues increased 8.2% compared with the same period of the previous fiscal
year, to ¥60.1 billion, due to increased net premiums written, as the number of insurance policies in force grew, primarily forour mainstay automobile insurance. Ordinary profit decreased 26.9% year on year, to ¥1.6 billion, owing mainly to a rise in
the loss ratio for automobile insurance as well as a higher expense ratio resulting from an increase in system-related expenses.

< Banking business >In the banking business, ordinary revenues increased 6.4% compared with the same period of the previous fiscal year, to¥23.8 billion, owing to the acquisition of a 57% equity interest in SmartLink Network, Inc. by Sony Bank on July 1, 2011.
This is because net fees and commissions increased as ordinary revenues of the newly acquired company are included in thescope of consolidation from the 2nd quarter of this fiscal year. Ordinary profit rose 63.1% year on year, to ¥2.5 billion due to arise in gross operating profit, resulting from an increase in net interest income. The net interest income increased because ofhigher interest income on loans led primarily by the growing balance of mortgage loans and a decrease in interest expenses
on yen deposits.
Ordinary Revenues
For the nine months ended
December 31, 2010
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the nine months ended
December 31, 2011

(Millions of yen)
Change (%)

669,423
55,60322,408703,971
60,144
23,840

5.2
8.2
6.4

747,434

787,956

5.4(1,416)(1,587)-746,017786,368

5.4

2

Ordinary Profit
For the nine months ended
December 31, 2010
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments*
Consolidated

For the nine months ended
December 31, 2011

(Millions of yen)
Change (%)

65,3882,316
1,553

49,591
1,694
2,534(24.2)(26.9)
63.1

69,259106

53,81972(22.3)(32.0)

69,36653,892*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

(22.3)

2. Qualitative Information on Consolidated Financial Position
As of December 31, 2011, total assets amounted to ¥6,980.7 billion, up 5.8% from March 31, 2011. Among major
components of assets, securities, mostly Japanese government bonds, amounted to ¥5,300.8billion, up 5.4% from March 31,
2011. Loans came to ¥944.1 billion, up 10.1%, and monetary trusts amounted to ¥301.0 billion, up 3.6%.
Total liabilities were ¥6,652.3 billion, up 5.6% from March 31, 2011. Major components of liabilities included policy
reserves and others of ¥4,804.3 billion, up 7.0%, and deposits totaled ¥1,687.3 billion, up 2.4%. In October 2011, SFH issued¥10 billion in bonds and transferred the funds raised through this issue to Sony Bank as a loan aimed at reinforcing thatcompany’s financial base.
Total net assets were ¥328.4 billion, up 11.4% from March 31, 2011. This included net unrealized gains on other securities,
net of taxes, which increased ¥19.3 billion, to ¥27.9 billion.

3. Consolidated Financial Forecast for the Year Ending March 31, 2012
SFH announced its revised consolidated financial forecast for the year ending March 31, 2012 (April 1, 2011, through March
31, 2012) on February 2, 2012. The previous forecast was announced on May 20, 2011.
SFH revised its consolidated financial forecast for the year ending March 31, 2012, as follows.

<Consolidated financial results forecast>
For the full year

Ordinary revenues

Ordinary profit(Billions of yen)
Net income

Forecast for the year ending March 31, 2012

1,047.0

67.0

29.0

(Reference)
Actual results for the year ended March 31, 2011

1,002.2

76.8

41.7

(Reference)
Forecasts of ordinary revenues and ordinary profit from each business for the year ending March 31, 2012, are as
follows. The previous forecasts were disclosed in the Consolidated Financial Summary for the year ended March 31,
2011, on May 20, 2011.
<Life insurance business>
At the end of the first half of this fiscal year, although the first-half operating results exceeded our previous forecast, thefinancial results forecast for this fiscal year remained unchanged due mainly to the uncertainty about the financial
market environment. However, we revise the full-year financial results forecast as income from insurance premiums andinvestment income on general account assets during the nine months ended December 31, 2011, exceeded our previous
forecast.

3

(Billions of yen)
Ordinary revenues

For the full year

Ordinary profit

Updated forecast for the year ending March 31, 2012

935.0

61.0

Previous forecast for the year ending March 31, 2012

909.3

53.0

(Reference)
Actual results for the year ended March 31, 2011

900.3

72.1

<Non-life insurance business>
The financial results forecast for the non-life insurance business for the year ending March 31, 2012, remains
unchanged from the previous forecast, announced on May 20, 2011. This is due to an anticipated steady increasein premium income and a reversal of catastrophe reserve, which is expected to offset the negative impact of arising loss ratio.
(Billions of yen)
Ordinary revenues

For the full year

Ordinary profit

Forecast for the year ending March 31, 2012

80.4

2.6

(Reference)
Actual results for the year ended March 31, 2011

74.1

2.1

<Banking business>
The financial results forecast for the banking business for the year ending March 31, 2012, has been revised mainly
because revenues from foreign-currency transactions during the nine months ended December 31, 2011, were lower thanour previous forecast, affected by foreign exchange rate fluctuations.
(Billions of yen)
Ordinary revenues

For the full year

Ordinary profit

Updated forecast for the year ending March 31, 2012

32.2

3.3

Previous forecast for the year ending March 31, 2012

32.8

4.1

(Reference)
Actual results for the year ended March 31, 2011

29.5

2.4

The above-mentioned forecasts were made based on information currently available to us and may differ from actual
results for a variety of reasons.

4Ⅱ. Notes Regarding Summary Information (Others)
1. Changes in scope of consolidation during the period
Owing to the acquisition of shares in SmartLink Network, Inc., by our banking subsidiary (Sony Bank Inc.), the newly
acquired company has included in the scope of consolidation since the three months ended September 30, 2011 underreview.
2. Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(Change in accounting policies resulting from the Revision of the Accounting Standards and Other Regulations)
From the three months of the year ending March 31, 2012, we have applied the “Accounting Standard for Earning Per
Share”(Accounting Standards Board of Japan [ASBJ] Statement No.2 of June 30, 2010), the “Guidance on AccountingStandard for Earnings Per Share”(ASBJ Guidance No.4 of June 30, 2010), and the “Practical Solution on Accounting for
Earnings Per Share”(ASBJ PITF No.9 of June 30, 2010).
3. Additional Information(Effects of changes in the corporate income tax rate)
Following the promulgation of the “Act for Partial Amendment of the Income Tax Act, etc. for the Purpose of Creating a
Taxation System Responding to Changes in Economic and Social Structures” (Act No. 114, 2011) and the “Act on
Special Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction following theGreat East Japan Earthquake” (Act No. 117, 2011) on December 2, 2011, the corporate income tax rate will be lowered
and a special restoration surtax will be imposed from the fiscal year beginning on April 1, 2012. The effective statutory
tax rate used by SFH for the calculation of deferred tax assets and deferred tax liabilities will consequently be revised
from the current rate of 40.69% to 38.01% for provisional differences and others, expected to be eliminated from theconsolidated fiscal year beginning April 1, 2012, through the consolidated fiscal year beginning on April 1, 2014, andwill be 35.64% for provisional differences and others, expected to be eliminated in fiscal years beginning April 1, 2015,or thereafter.
The effective statutory tax rate for Sony Life Insurance Co., Ltd., and Sony Assurance Inc. will be reduced from36.21% to 33.33% for provisional differences and others, expected to be eliminated during the period beginning from thefiscal year beginning on April 1, 2012, through the fiscal year beginning on April 1, 2014, and the tax rate on provisional
differences and others, that are expected to be eliminated from the fiscal year beginning on April 1, 2015, or thereafter,
will be 30.78%, because these portions of the tax base are not subject to taxes that are based on income.These changes intax rates will reduce deferred tax assets (net of deferred tax liabilities) by ¥4,782 million, and will raise deferred income
taxes by ¥6,623 million. Moreover, deferred tax liabilities on land revaluation will decline by ¥103 million, and land
revaluation, net of tax, will increase by the same amount.
Additionally, beginning from the fiscal year starting on April 1, 2012, the use of tax loss carryforwards will belimited to the equivalent of 80% of taxable income before deducting tax loss carryforwards. This change has no effect on
the Group’s performance.

5

Ⅲ. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2011

As of December 31, 2011

AssetsCash and due from banks
Call loans and bills bought
Monetary trusts
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersDue from reinsurers
Foreign exchanges
Other assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses¥ 90,455
78,500290,736
5,031,024
857,436
77,171
26,246
1,002
25,243
108
8,432
88,32049,0571,000(1,349)¥ 107,419
70,500301,0865,300,867
944,10976,05432,354984
31,369250
11,526
100,982
36,5051,000(1,901)

Total Assets¥6,597,140¥6,980,755

6

(Millions of yen)
As of March 31, 2011
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
Bonds payable
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 on land revaluation
Acceptances and guarantees
Total Liabilities
Net Assets
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 accumulated other comprehensive income

As of December 31, 2011

¥4,489,809
49,1644,435,804
4,839
1,502
799
1,647,657
10,0002,000
17－110,119
2,707
18,698441
16,817
16,8124693
1,000¥4,804,322
44,9484,754,847
4,526
1,340
654
1,687,311
10,0002,000
410,00089,354
1,560
20,933337
22,93622,9305589
1,000

6,302,263

6,652,346

19,900195,277
74,565
289,742
8,525(1,558)(1,499)
(331)
5,135

19,900195,277
88,556
303,733
27,900(2,661)(1,395)(481)
23,362

Minority interests

－

1,312

Total Net Assets

294,877

328,408¥6,597,140¥6,980,755

Total Liabilities and Net Assets

7

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the nine months ended
December 31, 2010

For the nine months ended
December 31, 2011

Ordinary Revenues¥746,017¥786,368

Ordinary Revenues from the Life Insurance Business

668,031

702,472

Income from insurance premiums

565,053

601,520

Investment income(Interest income and dividends)

94,571

83,37364,29972,314(Income from monetary trusts, net)

5,658

3,958

(Gains on sale of securities)

24,611

7,088

8,406

17,57855,60160,14255,01559,44954,99359,426

22

23

571

651

585

647

3

23

(Transfer to interest and dividends on deposits of premiums)

(22)

(23)

Other ordinary income

14

42

22,38423,753

17,664

18,551(Interest income on loans)

9,251

9,919

(Interest income and dividends on securities)

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)(Gains on sale of securities)

Ordinary Revenues from the Banking Business
Interest income

8,317

8,593

Fees and commissions

1,424

3,263

Other operating income

3,268

1,892

2,258

1,329

26

46

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

8

(Millions of yen)
For the nine months ended
December 31, 2010
Ordinary Expenses¥676,651

Ordinary Expenses from the Life Insurance Business

For the nine months ended
December 31, 2011
¥732,476

603,696654,027

209,765
56,155
5,286
30,112
115,276
1,310

216,472
52,627
5,735
33,552
121,257
1,803

285,521
14,295271,21212
21,31743828
348
13,147
73,113315,000－
314,9891129,728
44
1,847
1,470
18,792
77,547

13,97852,965

15,27858,049Underwriting expenses

40,202

43,905(Net losses paid)(Loss adjustment expenses)(Net commission and brokerage fees)(Provision for reserve for outstanding losses)(Provision for underwriting reserves)
Investment expenses

29,326
3,541
734
1,446
5,153
－

32,951
3,797
761
2,325
4,068
2

Operating, general and administrative expenses

12,72914,09233

49

19,98920,398

8,126

6,558

6,567

5,111

910

1,031

Insurance claims and other payments(Insurance claims)(Annuity payments)(Insurance benefits)(Surrender payments)(Other payments)
Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders’ dividends
Investment expenses(Interest expenses)(Losses on sale of securities)(Devaluation losses on securities)(Losses on separate accounts, net)
Operating expenses
Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business

Other ordinary expenses
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary Profit

489

432

10,031

11,879432

496

69,36653,892(Continued)

9

(Millions of yen)
For the nine months ended
December 31, 2010
Extraordinary Gains

For the nine months ended
December 31, 2011

0
0

0
0

6,974
53

6,399
31

1,288

249

290

－

5,341

6,118

Provision for reserve for price fluctuations

5,341

6,118

Provision(Reversal) for Reserve for Policyholders’ dividends

437

(113)

Income Before Income Taxes

61,95347,606

Income Taxes

23,571

24,849- Current

27,46019,705- Deferred(3,889)5,144

38,38222,756－66

38,382

22,690Gains on disposal of fixed assets
Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Cumulative effect on application of accounting standard for
asset retirement obligations
Provision for special reserves

Income Before Minority Interests
Minority interests in income
Net Income102. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the nine months ended
December 31, 2010
Income Before Minority Interests

For the nine months ended
December 31, 2011

¥38,382¥22,756

1,103

19,377(1,175)(1,102)Land revaluation, net of taxes－

103

Foreign currency translation adjustments

(99)

(149)

(4)

(2)

(176)

18,227

Comprehensive income

38,20540,984(Details)
Comprehensive income attributable to parent company

38,20540,918Comprehensive income attributable to minority interests—

66

Other comprehensive income
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes

Share of other comprehensive income of affiliates accounted
for using equity method
Total other comprehensive income

113. Segment Information
For the nine months ended December 31, 2010
(1) Segment Information by reportable segment

Ordinary revenues
External customers
Intersegment
Total
Segment profit

Life insurance
business

Non-life
insurancebusiness¥668,031
1,391
669,423¥65,388¥55,6011
55,603¥2,316(Millions of yen)
Bankingbusiness¥22,384
23
22,408¥1,553

Total¥746,017
1,416
747,434¥69,259(2) Reconciliations of the total of reportable segments’ profit to Consolidated Statement of Income(Millions of yen)
Total of each reportable segment¥69,259
Adjustments of intersegment transaction
9
Unallocated amount to reportable segment*
97
Ordinary profit in Consolidated Statement of¥69,366
Income*Amounts in the Ordinary profit in the “Unallocated amount to reportable segment” are mainly from SFH.
(3) Information on impairment losses on tangible fixed assets and goodwill by reportable segment(Material impairment loss on tangible fixed assets)

Life insurance
business
Impairment losses

Reportable Segments
Non-life
Banking
insurancebusinessbusiness¥1,288¥—¥—(Material changes in goodwill)
None(Material profit from negative goodwill)
None

12

(Millions of yen)Total
¥1,288Others¥—Consolidated¥1,288

For the nine months ended December 31, 2011
(1) Segment Information by reportable segment

Ordinary revenues
External customers
Intersegment
Total
Segment profit

Life insurance
business

Non-life
insurancebusiness¥ 702,472
1,499
703,971¥ 49,591¥ 60,142
1
60,144¥ 1,694(Millions of yen)
Bankingbusiness¥ 23,753
86
23,840¥ 2,534

Total¥ 786,368
1,587
787,956¥ 53,819(2) Reconciliations of the total of reportable segments’ profit to Consolidated Statement of Income
Total of each reportable segment
Adjustments for intersegment transaction
Unallocated amount to reportable segment*
Ordinary profit in Consolidated Statement of
Income(Millions of yen)
¥ 53,819
7
64¥ 53,892*Amounts in the Ordinary profit in the “Unallocated amount to reportable segment” are mainly from SFH.
(3) Information on impairment losses on fixed assets and goodwill by reportable segment
None

4. 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 nine months ended December 31, 2010 and 2011, net income per share was ¥88.24 and ¥52.16. There were no
potentially dilutive securities.
The basis for this calculation for the nine months ended December 31, 2010 and 2011 is net income of ¥38,382
million and ¥22,690 million, the entire amounts of which are applicable to common stock. The weighted-average number ofshares outstanding for the nine months ended December 31, 2010 and 2011, was 435 million.
Note: Although a stock split was conducted during the three months ended June 30, 2011, net income per share for the nine months ended
December 31, 2010, was calculated assuming that the stock split was conducted at the beginning of the previous fiscal year.

13

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 with accounting principles and practices generally accepted in the
United States.
*SFH’s scope of consolidation for the nine months ended December 31, 2011 and the year endeding March 31, 2012, 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., and SmartLink Network, Inc. It also includes AEGON Sony Life
Insurance Co., Ltd. and SA Reinsurance Ltd., as affiliated companies accounted for under the equity method. SmartLink
Network, Inc. was not included in the scope of consolidation for the nine months ended December 31, 2010 and for the year
ended March 31, 2011.

On February 2, 2012, Sony Corporation announced its consolidated financial results for the third
quarter ended December 31, 2011(October 1, 2011, to December 31, 2011). SFH Group
companies constitute the majority of Sony Group’s Financial Services segment. However, thescope of Sony Group’s Financial Services segment differs from the scope of SFH’s consolidated
results. For the scope of Sony Group’s Financial Services segment, please refer to the news
release announced by Sony Corporation on February 2, 2012.
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/web/index_en.html

14

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

Consolidated Operating Results for the Nine Months Ended December 31, 2011・・・・・・・・ 3
Consolidated Financial Forecast for the Year Ending March 31, 2012・・・・・・・・・・・・・ 27
Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 29

15

Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2011

Sony Financial Holdings Inc.
February 14, 2012

Content■Consolidated Operating Results for the Nine Months Ended December 31, 2011

P.3

■Consolidated Financial Forecast for the Year Ending March 31, 2012

P.27

■ Appendix

P.29

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-looking statements. Forward-looking statements may include—but are not limited
to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” and “possibility” that describe future
operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, arebased on judgments made by the management of the SFH Group, based on information that is currently available to it. As
such, these forward-looking statements are subject to various risks and uncertainties, and actual business results may vary
substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned
not 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
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever.

2Consolidated Operating Results for
the Nine Months Ended December 31, 20113

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2011 (1)(Billions of yen)

Ordinary revenues+5.4%

Ordinary profit

786.3

746.0

669.4

703.9

+34.5

+5.2%

ChangeOrdinary revenues
Ordinary profit

65.3

49.5

(15.7)(24.2%)

Non-life
insurancebusiness

Ordinary revenues

55.6

60.1

+4.5

+8.2%

2.3

1.6

(0.6)

(26.9%)

22.4

23.8

+1.4

+6.4%

1.5

2.5

+0.9

+63.1%

(1.4)

(1.5)

(0.1)

-

0.1

0.0

(0.0)

(32.0%)

746.0

786.3

+40.3

+5.4%

Ordinary profit

69.3

53.8

(15.4)(22.3%)Net income

38.3

22.6

(15.6)(40.9%)

Ordinary profit
Ordinary revenues
Ordinary profit(22.3%)
Intersegment
adjustments*

53.8

Ordinary revenues
Ordinary profit
Ordinary revenues

Consolidated

FY10.3Q (9M)

FY11.3Q(9M)

Life
insurancebusiness

Bankingbusiness

69.3

FY10.3Q(9M)

FY11.3Q (9M)(Billions of yen)(Billions of yen)

10.12.31

11.3.31

11.12.31

Change from 11.3.31

Total
assets6,435.9

6,597.1

6,980.7+383.6

+5.8%

301.1

294.8

328.4

+33.5

+11.4%

Consolidated
Net assets*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY10.3Q (9M): ¥38.2 billion, FY11.3Q (9M): ¥40.9 billion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2011 (2) Life Insurance: Ordinary revenues increased year on year, due to higher income from insurance

premiums associated with steady growth in the policy amount in force. Ordinary profit decreased, due
to lower gains on sale of securities, reflecting the process of shifting bond holdings to ultralong-termbonds to reduce interest rate risk, whereas insurance claims and other payments relating to the Great
East Japan Earthquake were lower than our estimates as of the end of the previous fiscal year.
 Non-life Insurance: Ordinary revenues increased year on year, owing to an increase in net premiums

written, as the number of insurance policies in force grew primarily for automobile insurance. Ordinary
profit decreased due primarily to a rise in the loss ratio for automobile insurance as well as a higher
expense ratio resulting from an increase in system-related expenses.
 Banking: Ordinary revenues increased year on year due to an increase in net fees and commissions

resulting from Sony Bank’s acquisition of a 57% equity interest in SmartLink Network, Inc. on July 1,
2011 as consolidated subsidiary. Ordinary profit increased due to a rise in gross operating profit,
resulting from an increase in net interest income. The net interest income increased because of higher
interest income on loans led primarily by the growing balance of mortgage loans and a decrease ininterest expenses on yen deposits.
 Consolidated ordinary revenues increased 5.4% year on year, to ¥786.3 billion, however, consolidated

ordinary profit decreased 22.3%, to ¥53.8 billion. Net income decreased 40.9%, to ¥22.6 billion. The
deferred income taxes increased ¥6.6 billion, resulting from the reversal of deferred tax assets owing
to the newly promulgated laws associated with the reduction in the corporate tax rate.
In October 2011, SFH issued ¥10 billion in bonds and transferred the funds raised through this issue
to Sony Bank as a loan aimed at reinforcing that company’s financial base.

5

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

Ordinary profit

FY10.3Q(9M)(Billions of yen)
Ordinary revenues

703.8

+5.2%

669.1

703.8

+34.6

Income from insurance premiums

565.5

602.0

+36.5

+6.5%

Investment income

94.7

83.5

(11.1)(11.8%)

Interest income and dividends

64.4

72.5

+8.0

+12.5%

Income from monetary trusts, net

5.6

3.9

(1.7)

(30.0%)

Gains on sale of securities

66.1
50.5

24.5

7.0

(17.5)(71.3%)

653.3

+50.2

+8.3%

Insurance claims and other payments

209.7

216.4

+6.6

+3.2%

Provision for policy reserves and others

285.4

314.9

+29.4

+10.3%

Investment expenses

21.3

29.8

+8.4

+39.6%

0.8

1.8

+1.0

+123.0%+42.9%

Losses on separate accounts, net

13.1

18.7

+5.6

73.2

77.6

+4.4

+6.1%

Ordinary profit

66.1

50.5

(15.6)(23.6%)Net income

37.1

22.2

(14.8)(40.1%)

Operating expenses

FY11.3Q (9M)(Billions of yen)Ordinary revenues increased but ordinary profit decreased
year on year.
Income from insurance premiums increased due to a steadyincrease in the policy amount in force.
Investment income decreased due to lower gains on sale ofsecurities, although interest income and dividends increased.
Ordinary profit decreased due to lower gains on sale of securities,
whereas insurance claims and other payments relating to theGreat East Japan Earthquake were lower than our estimatesas of the end of the previous fiscal year.

+5.2%

603.0

Losses on sale of securities

FY10.3Q (9M)

Change669.1

Ordinary expenses(23.6%)

FY11.3Q(9M)

10.12.31

11.3.31

11.12.31

Securities(Billions of yen)

3,921.2

4,017.5

4,349.4+331.8+8.3%

Policy reserves

4,256.7

4,371.4

4,686.4+314.9+7.2%

Total net assets

222.6

215.3

249.0

+33.6

+15.6%

16.6

7.0

27.4

+20.4

+291.5%

4,593.0

4,723.3

5,038.0+314.6

+6.7%

381.7

398.1

397.4

(0.6)

(0.2%)Net unrealized gains onother securities
Total assets
Separate account assets

Change from 11.3.31

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

6

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

FY10.3Q(9M)

FY11.3Q(9M)

ChangeNew policy amount

3,229.3

3,227.1

Lapse and surrender amount

1,601.6

1,561.9(2.5%)

Lapse and surrender rate

4.79%

4.50%

(0.29pt)

Policy amount in force(0.1%)

34,519.935,807.9+3.7%Annualized premiums from new policies

53.9

53.1

(1.5%)Of which, third-sector products

12.6

13.0

+2.8%

598.0

627.6

+5.0%

147.3

+6.0%

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

139.0(Billions of yen)

FY10.3Q(9M)

FY11.3Q(9M)

 Remained at the same level, due mainly to lower
sales of family income insurance, which is life
insurance with disability benefit, despite favorable
sales of term-life insurance.
 Decreased due to the lowering lapse andsurrender rates mainly in family income insurance,
which is life insurance with disability benefit.
 Decreased, due mainly to lower sales of
educational endowment insurance, despite
favorable sales of term-life insurance and living
benefit insurance.

ChangeGains from investment, net (General account)

86.4

72.5

Core profit

43.9

50.9

+15.9%

Negative spread

5.5

1.7

(69.1%)

Solvency Margin Ratio(Reasons for changes)

 Decreased due to lower gains on sale of securities
on the process of shifting its bonds holdings
despite an increase in interest income anddividends.

(16.2%)

10.12.31

11.3.31

11.12.31

Changefrom
11.3.312,971.9%

2,900.1%

3,147.8%+247.7pt

 Increased reflecting lower insurance payments for
the Great East Japan Earthquake of March 2011
than formerly expected, and a decline in negative
spread.

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as thetotal of individual life insurance and individual annuities.
*2 The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, notadjusted for policy amount decreases, increases, and reinstatements, by the policy amount in force at the
beginning of the fiscal year.

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

Number of new policies(Trillions of yen)

Annualized premiums from new policies

440

462

(1.8%)

454
60

3.5
3.0

Of which, third-sector(Thousands of policies) (Billions of yen)

3.22

(0.1%)

3.22

3.02

50

2.5

40

2.0

30

50.6

53.9

(1.5%)

53.1

1.5

20
1.0
0.5

+2.8%

10

12.2

12.6

13.0

FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)0Line 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.

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)
+6.3%

5.27

5.34

5.60

(Billions of yen)

+4.8%
+5.0%

+3.7%

34.5

627.6

604.7

598.0

+3.8%

35.8

34.7
+3.0%

+6.0%

139.0

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

140.7

147.3

+4.6%

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)
Lapse and surrender rate (Annual)（％）

Lapse and surrender rate (1H)（％）

Lapse and surrender rate (9M)

3,500

3,147.8
2,971.9
7.21(Annual)

3,000

2,900.1+247.7pt

6.41
5.31

(9M)

4.79

(0.29pt)

2,500

(1H)

3.27

3.11

2.95

2,000

1,500010.12.31*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.

11.3.31

11.12.31

Note:
Legislation concerning the calculation of the solvency margin ratio has been revised fromthe standpoint of raising its credibility, and these new standards are to become effective asof the end of fiscal 2011 (March 31, 2012). The above-stated figures are calculated on theassumption that these changes are applied at March 31and December 31, 2011.
* New solvency margin ratio for Sony Life is also on P 34.

Percentage change figures are rounded10

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

Ordinary Profit(Billions of yen)

700
+6.5%

602.0

70

66.1

565.5

600

60

512.1

500

(23.6%)

54.9

50.5

50

400
40

300

30

200

20

100

10
0

0
FY09.3Q (9M)

FY10.3Q (9M)

FY09.3Q (9M)

FY11.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)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)60

15

+15.9%

50

45.1

50.9
12.2

43.9
10

40

30

5.5
5

20

(69.1%)

1.7

10

0

0
FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)

FY09.3Q (9M)

FY10.3Q (9M)

FY11.3Q (9M)Line item amounts are truncated below ¥100 million; percentage figures are rounded.

12

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

Number of Independent Agents(Number)(Number)

2,500

2,089
(87)

2,072

2,064

2,060

2,000
(4)

1,500

1,000
0

0

10.3.3110.12.31

11.3.31

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

13

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

11.12.31(Billions of yen)Amount%Amount%3,499.9

80.9%

3,833.8

82.6%

Japanese stocks

64.0

1.5%

45.6

1.0%

Foreign securities

44.2

1.0%

60.2

1.3%

Foreign stocks

30.0

0.7%

28.0

0.6%

276.4

6.4%

286.8

6.2%

Japanese governmentand corporate bonds

Monetary trusts

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 government and corporate bonds:
Continue to accumulate ultralong-term bonds in FY11.

<Lengthened asset duration>
10.3.3117.6 years

11.3.3118.5 years

11.12.31

19.1 years

Policy loans

134.4

3.1%

137.6

3.0%

Real estate

75.1

1.7%

73.5

1.6%

Cash and call loans

80.0

1.9%

64.4

1.4%

■Investment in the monetary trusts are mainly into Japanese
government and corporate bonds.

Others

120.9

2.8%

110.3

2.4%

■The holding ratio on the real status, of Japanese government andcorporate bonds including those invested in monetary trusts in thegeneral account assets:

4,325.2

100.0%

4,640.5

100.0%

As of December 31, 2011: 88.8%, (As of March 31, 2011: 87.3%)

Total

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit

60.1(Billions of yen)

55.6

FY10.3Q

FY11.3Q

(9M)

(9M)

+8.2%

55.6

60.1

+4.5

+8.2%

Underwriting income

55.0

59.4

+4.4

+8.1%

Investment income

0.5

0.6

+0.0

+14.0%

53.2

58.4

+5.1

+9.7%

Underwriting expenses

40.4

44.1

+3.7

+9.2%

Investment expenses

－

0.0

+0.0

－

12.7

14.2

+1.4

+11.2%

Ordinary profit

2.3

1.6

(0.6)

(26.9%)Net income

1.4

0.5

(0.8)

(62.9%)

Ordinary revenues

Ordinary expenses(26.9%)

1.6

2.3

Operating, general andadministrative expenses(Billions of yen)Ordinary revenues increased but ordinary profit decreased year onyear.
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 a rise in the loss ratio for
automobile insurance as well as a higher expense ratio resulting
from an increase in system-related expenses.

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

10.12.31

11.3.31

11.12.31

Change from 11.3.31

63.2

64.0

68.1

+4.0

+6.3%

16.9

16.7

17.3

+0.5

+3.2%

104.3

109.3

114.1

+4.8

+4.4%

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

15

Overview of Performance:
Sony Assurance(Billions of yen)

FY10.3Q(9M)(Reasons for changes)

FY11.3Q(9M)

Change Increased owing to an increase in the numberof policies in force for automobile insurance.

Direct premiums written

54.5

58.8

+7.7%

Net premiums written

54.9

59.4

+8.1%

Net losses paid

29.3

32.9

+12.4%

Underwriting profit

1.8

1.1

(38.9%)Net loss ratio

59.8%

61.8%

+2.0ptNet expense ratio

25.0%

25.5%

+0.5ptCombined ratio

84.7%

87.4%

+2.7ptNet expense ratio is equal to the ratio of total underwriting costs to net premiums written.

 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 the effect of natural
disaster.
 Increased due primarily to an increase insystem-related expenses.

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

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

Number of policies in force
Solvency margin ratio

10.12.31

11.3.31

11.12.31

1.36 million

1.38 million

1.47 million

1,010.8%

981.4%

912.8%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

Change from 11.3.31+0.08 million+6.2%(68.6pt)

Line 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

FY10.3Q

FY11.3Q

(9M)

(9M)

(Millions of yen)

Change(Millions of yen)

Fire

120

118

(1.5%)

Marine－－－Personal accident*

5,339

5,517

+3.3%

Voluntary automobile

49,13653,177

+8.2%

－

－

－

54,59658,812+7.7%

Compulsory
automobile liability
Total

FY10.3Q

FY11.3Q

(9M)

(9M)

Change

Fire

5

68

－

Marine250－

Personal accident*

5,507

5,681

+3.2%

Voluntary automobile

48,934

52,978

+8.3%

543

647

+19.1%

54,99359,426+8.1%

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

Net losses paid
FY10.3Q

FY11.3Q

(9M)

(9M)

(Millions of yen)

Change

Fire

0

40

－

Marine10104+856.3%

Personal accident*

1,179

1,352

+14.7%

Voluntary automobile

27,63330,806+11.5%

502

647+28.8%

29,32632,951+12.4%

Compulsory
automobile liability
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

Number of policies in force

Other(Billions of yen)

+7.8%

1.47

(Millions of policies)

1.4

1.25

70

1.2

2.5

5.6

1

2

52.9

0.8

59.4
60
0.4

50

50.3

0.5

54.9

0.7

+8.1%

5.5

5.3

40
48.9

30

(Billions of yen)

3

1.36

80

Ordinary Profit

2.3(26.9)%

1.8

1.6

1.5
0.6

44.5

1
0.4

20

0.2

10

0

0
FY09.3Q(9M)

FY10.3Q(9M)

FY11.3Q(9M)The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.

0.5

0FY09.3Q(9M)

FY10.3Q(9M)

FY11.3Q(9M)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>

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

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

Net expense ratio(%)

Net expense ratio

(%)

100

95.2

91.9

97.0

+3.6pt

91.0

100

93.4

85.6

83.3

81.8

87.4

84.7 +2.7pt

8080+3.1pt 71.5

+2.0pt

68.4
60

60

65.5

69.7
65.8

56.3

57.2

40

40

20

61.8

59.8

60.0

26.1

20

+0.5pt

25.5

25.5

25.0

25.5

FY10.3Q<9M>

FY11.3Q

0

26.1

25.5

+0.5pt

25.5

25.0

25.5

FY09.3Q

FY10.3Q<9M>

FY11.3Q

0
FY09

FY10

FY09.3Q

<1Y>

FY09

FY10

<1Y>

Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid, loss adjustment

Net expense ratio is equal to the ratio of total underwriting costs to net 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(%)<Reference>
New solvency margin ratio effective as of the end of FY11

1,010.8(68.6pt)

981.4

912.8

March 31, 2011 : 631.0%
December 31, 2011 : 585.7%
Variation factor from the previous standard :◆Stricter risk measurement

Note:
Legislation concerning the calculation of the solvency margin ratio
has been revised from the standpoint of raising its credibility, andthese new standards are to become effective as of the end of fiscal
2011 (March 31, 2012). The above-stated figures are calculated on
the assumption that these changes are applied at March 31, andDecember 31, 2011.

20

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

Ordinary profit(0.9%)

22.3(Billions of yen)

22.1

FY10.3Ｑ
(9M)

22.3

22.1

(0.1)

(0.9%)

Gross operating profit

12.1

13.6

+1.4

+11.6%

9.5

12.0

+2.4

+25.7%Net fees and commissions(0.15)

0.07

+0.23

－

Net other operating income

2.9+27.4%(Billions of yen)Ordinary revenues decreased but ordinary profit
increased year on year.
Gross operating profit increased ¥1.4 billion year on year due
mainly to an increase in net interest income.
- Net interest income increased ¥2.4 billion owing primarily to
an increase in interest income on loans and a decrease ininterest expenses on yen deposits.
- Net other operating income decreased ¥1.2 billion reflecting
a decrease in gains on foreign exchange transactions.
Net operating profit increased ¥0.7 billion owing to the abovementioned increase in gross operating profit . The increase ingross operating profit offset the negative impact of higher
general and administrative expenses led primarily by
personnel reinforcement of the full-scale entry into credit cardbusiness.
Customer assets increased ¥27.8 billion from March 31, 2011.
Among them, deposit balance increased ¥39.2 billion.

ChangeOrdinary revenues

Net interest income

2.2

FY11.3Q
(9M)

2.7

1.4

(1.2)

(46.2%)

General andadministrative expenses

9.4

10.2

+0.7

+7.9%

Ordinary profit

2.2

2.9

+0.6

+27.4%Net income

1.2

1.6

+0.4

+34.3%Net operating profit

2.4

3.1

+0.7

+30.2%

Change from 11.3.31(Billions of yen)

10.12.31

11.3.31

11.12.31

Securities

952.3

940.1

878.3

(61.7)(6.6%)

Loans

681.0

722.4

805.9

+83.4

+11.6%

Deposits

1,609.9

1,649.1

1,688.3

+39.2

+2.4%

Customer assets

1,711.6

1,755.5

1,783.4

+27.8

+1.6%

Total net assets

58.9

59.9

59.3

(0.5)

(1.0%)

0.7

0.4

(0.6)

(1.0)

－

1,736.3

1,761.8

1,818.7

+56.9

+3.2%

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.

21

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)
10.12.31

11.3.31

11.12.31

1,711.6

1,755.5

1,783.4

+27.8

+1.6%

Deposits

1,609.9

1,649.1

1,688.3

+39.2

+2.4%

Yen

1,265.1

1,289.8

1,334.0

+44.1

+3.4%

344.8

359.2

354.3

(4.8)

(1.4%)

101.6

106.4

95.0

(11.3)(10.7%)

681.0

722.4

805.9

+83.4

+11.6%

Mortgage loans

621.4

656.0

722.7

+66.6

+10.2%

Others

59.6

66.4

+16.8

+25.3%+25+2.9%(Billions of yen)

Customer assets

Foreign currency
Investment trusts
Loans outstanding

*1

83.2

Change from 11.3.31*1

Number of accounts (thousands)

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

840

859

884

11.25%

10.84%

11.86%+1.02pt

10.79％

10.41％

9.85%(0.56pt)*1 Loans in others include corporate loans of ¥75.8 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P26.

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

 Foreign currency deposit decreased as
the hike in the yen had the negative
impact on the foreign exchange
conversion (approx. ¥28 billion), though
the foreign-currency denominatedbalance increased.

 Investment trusts decreased reflecting adecline in reference price.

 Loan balance steadily increased due toincreases in mortgage loans andcorporate loans centering on syndicatedloans.
 In October 2011, SFH issued ¥10 billion
in bonds and transferred the funds raised.
through this issue
to Sony Bank as a loan
aimed at reinforcing that company’s
financial base.
The Tier 1 ratio was also kept at a highlevel.

Line item amounts are truncated below ¥100 million; numbers of accounts are truncated below 1,000 accounts; percentage change figures are rounded.

22

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

FY09.3Q(9M)

FY10.3Q(9M)

FY11.3Q
(9M)

11.0

12.1

13.5

+1.4

+11.7%

10.0

11.0

13.0

+2.0

+18.2%Net fees andcommissions *2 ②

0.9

Net other operating
income *30.0

Gross Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Net Operating Profit (Core Profit)

ChangeGross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses

0.5

0.7

0.5

(0.2)

+0.2

+34.8%

11.0

Operating expenses andother expenses ③

8.6

9.7

10.4

+0.6

+6.9%

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

2.4

1.8

3.4

+1.5

+81.6%

13.8+2.2(Billions of yen)

12

11.0

13.8
+19.0%－(0.7)

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

11.6

14

+19.0%●Managerial accounting basis
The following adjustments are made to the figures on a financial accounting basis toaccount for profits and losses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment
recorded in net other operating income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings 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.

11.6
+6.9%

9.7

10

10.4

8.6
8
6

3.4

4
+81.6%

2.4

1.8

2
0

●Core profit
FY09.3Q (9M)
FY10.3Q (9M)
FY11.3Q (9M)
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.

23

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

Yield on investment

Yield on financing

(%)
2.00

1.50

1.00

1.42

0.88

0.53
0.50

1.40

1.41

1.41

0.94

0.98

1.01

0.45

0.43

0.40

0.40

FY10.4Q

FY11.1Q

FY11.2Q

FY11.3Q

1.36(0.05pt)

0.96

0.00
FY10.3Q

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.

24

Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
Yen deposits

Foreign currency deposits

Loans
Mortgage loans

Investment trusts(Billions of yen)

Others*Including corporate loans of ¥75.8billion.

(Billions of yen)

+83.4
800

1,711.6

1,755.5

722.4

1,783.4

805.9
83.2*

681.0

+27.8

95.0
600

354.3

722.7

400
Deposits
total:

1,334.0

1,688.3
200

010.12.31

11.3.31

11.12.31

Line item amounts are truncated below ¥100 million.

25

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

Balance of Securities by Credit Ratings
AAA
BBB

AA
BB

A
Other

Capital Adequacy Ratio

Tier I Ratio

11.25

10.84

+1.02pt

10.41（0.56pt）（％）(Billions of yen)

11.86
952.3

940.1

(61.7)

878.3

10.79

9.85

<Reference>
In October 2011
Sony Bank borrowed funds from SFH
as subordinated loan to reinforce its financial base.

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

Amounts are truncated below ¥100 million.

26

Consolidated Financial Forecast
for the Year Ending March 31, 201227

Consolidated Financial Forecast
for the Year Ending March 31, 2012
Ordinary revenues and ordinary profit were revised upward, whereas net income remained unchanged.
FY10(Billions of yen)
Consolidated ordinary revenues
Life insurance business
Non-life insurance businessBanking business
Consolidated ordinary profit
Life insurance business
Non-life insurance businessBanking business
Consolidated net income

FY11
Revised Forecast

ActualFY11
Previous
Forecast

ChangeFY11 revised forecast vs.
FY11 previous forecast

1,002.2

1,047.0

1,022.0

+25.0

900.3
74.1
29.5

935.0
80.4
32.2

909.3
80.4
32.8

+25.7
－
(0.6)

76.8

67.0

59.0

+8.0

72.1
2.1
2.4

61.0
2.6
3.3

53.0
2.6
4.1

+8.0
－
(0.8)

41.7

29.0

29.0

－

■Life insurance businessAt the end of the first half of this fiscal year, although the first-half operating results exceeded our previous forecast, the financial results forecast for this fiscal year remained unchanged
due mainly to the uncertainty about the financial market environment. However, we revise the full-year financial results forecast as income from insurance premiums and investment
income on general account assets during the nine months ended December 31, 2011, exceeded our previous forecast.
■Non-life insurance business
The financial results forecast for this fiscal year remains unchanged from the previous forecast. This is due to an anticipated steady increase in premium income and a reversal ofcatastrophe reserve, which is expected to offset the negative impact of a rising loss ratio.
■Banking Business
The financial results forecast for this fiscal year has been revised mainly because revenues from foreign-currency transactions during the nine months ended December 31, 2011, werelower than our previous forecast, affected by foreign exchange rate fluctuations.
1. Amounts are truncated below ¥100 million.
2. On Feb 2, 2012, SFH revised its consolidated financial forecast for this fiscal year. The previous forecast was announced on May 20, 2011.

28

Appendix

29

Recent Topics 1
AEGON Sony Life Insurance Sales Update
Launch of sales：December 1, 2009
Common stock：¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products: Individual Variable Annuities (3 types, 4 products)
Sales Channels: Lifeplanner sales employees and partner banks (7*) As of February 14, 2012
Financial Highlights for FY11.3Q (9M):
Number of new policies: 1,467, New policy amount: ¥10.6 billion
Number of policies in force: 2,659 policies, Policy amount in force: ¥23.2 billion

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 25% of the balance ofmortgage loans as of December 31, 2011
Sony Life accounts for 28% of the amount of
new mortgage loans for FY11.3Q (9M)*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies
for FY11.3Q (9M)
* Sony Life started handling automobile insurance in May 2001.
“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

30

Recent Topics 2<Highlights from the FY11.3Q onward>
2011-10-03

AEGON Sony Life Insurance began offering "W Account II," a new individual variable annuity product (GMAB Type 2011),
through Kansai Urban Banking

2011-10-25

Sony Financial Holdings issued No. 1 unsecured corporate bonds

2011-11-02

Sony Life began offering new product: Cancer Drug Therapy Rider

2011-11-28

Sony Bank added four funds including Chinese RMB fund to investment trust lineups

31

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

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.”32

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

11.3.31②RealNet Assets

11.12.31

11.3.31③Solvency
Margin11.12.31

11.3.31

209.8

222.9

209.8

222.9

Net unrealized gains on other securities, net of taxes

7.0

27.4

7.0

27.4

－

－

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

－

－

－

－

20.8

46.4

Land revaluation, net of taxes

(1.4)

(1.3)

(1.4)

(1.3)

－

－

Reserve for price fluctuations

－

－

16.7

22.8

16.7

22.8

Contingency reserve

－

－

51.5

54.2

51.5

54.2

General reserve for possible loan losses

－

－

－

－

0.0

0.0

Net unrealized gains on real estate

－

－

1.9

1.9

1.0

1.0

Excess amount of policy reserves based on Zillmer method

－

－

334.2

346.1

334.2

346.1

Unallotted portion of reserve for policyholders' dividends

－

－

1.1

0.8

1.1

0.8

Future profits

－

－

－

－

0.6

0.6

Deferred tax assets

－

－

－

－

63.3

59.5

Unrealized gains (losses) on held-to-maturity bonds－－(22.1)

152.4

－

－

Deferred tax liabilities for available-for-sale securities

－

－

8.0

15.6

－

－

215.3

249.0

606.9

843.3

690.3

754.7

Total shareholders’ equity

Total

200.7

Notes

11.12.31

Note: Real net assets excluding net unrealized gains (losses) on held-to-maturity securities and on policy reserve matching bonds, are¥629.1 billion as of March 31, 2011, and ¥690.8 billion as of December 31, 2011.

222.9③After estimated distributed
income deducted③Before tax x 90%②Before tax（After revaluation）③Before tax(Before revaluation) X85%

②Before tax

Amounts are truncated below ¥100 million.

33

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

Note: Cabinet Office Ordinance No. 23 of 2010 and FSA public ministerial announcement No. 48 of 2010 prescribe a revision in the methods of calculating
total solvency margin and total risk (increasing the strictness of margin inclusion, and making risk measurement stricter and more sensitive).
These changes are to be applied from the end of FY11. The above-stated figures are calculated on the assumption that these changes are applied as of December 31, 2011.
Amounts are truncated below ¥100 million.

34

Status of Exposure in the five European countries

SFH Group’s Exposure in the five European countries(Greece, Ireland, Italy, Portugal, and Spain)

Sovereign bond

OthersSony Life

―

―

Sony
Assurance――

Sony Bank―¥1.6 Billion(Corporate bonds of Spanish company)(Note) As of December 31, 2011. Exposure of Sony Life is for general account assets.

35

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

36