Presentation Material

Consolidated Financial Results
for the Six Months Ended September 30, 2009

Sony Financial Holdings Inc.
November 16, 20090

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performance andthat are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” “possibility” that describe future operating
activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, are based on
judgments made by the management of the SFH Group, based on information that is currently available to it. As such, theseforward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially fromthe 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 not constitute or form part ofany 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.

1

Disclaimer

1Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2009
FY08.１H

FY09.１H

Ordinary
revenues

372.1

432.6

+60.5

+16.3%

Ordinary profit

20.0

36.3

+16.3

+81.3%

Ordinary
revenues

30.7

33.9

+3.2

+10.7%

Ordinary profit

1.1

1.5

+0.3

+30.3%

Ordinary
revenues

17.7

15.3

(2.4)

(13.7%)

Ordinary profit

1.1

1.4

+0.3

+28.2%

Ordinary
revenues

(0.5)

(0.7)

(0.1)

－

(Billions of yen)(Billions of yen)

Ordinary profit

Ordinary revenues

Life insurance
business

481.2+14.6%

Non-life
insurancebusiness

420.0

Bankingbusiness

39.4

Corporate andelimination

Ordinary profit+75.6%

22.4
Consolidated

FY08.1H

Change

0.0

0.0

(0.0)

(26.9%)

Ordinary
Revenues

420.0

481.2

+61.1

+14.6%

Ordinary profit

22.4

39.4

+16.9

+75.6%Net income

12.1

23.3

+11.2

+92.0%

FY09.1H
Consolidated

09.9.30

Change from09.3.31(Billions of yen)

08.9.30

09.3.31

Total assets

5,304.3

5,313.6

5,584.7+271.0+5.1%

Net assets

198.9

204.8

249.9

+45.1

+22.0%

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

2

During the six months ended September 30, 2009, consolidated
ordinary revenues grew 14.6% compared with the same period of theprevious fiscal year, to ¥481.2 billion. By segment, ordinary revenues
from the life insurance business and the non-life insurance businessrose 16.3%, to ¥432.6 billion, and 10.7%, to ¥33.9 billion, respectively,
while those of the banking business declined 13.7%, to ¥15.3 billion.
Consolidated ordinary profit increased 75.6% year on year, to ¥39.4
billion. By segment, ordinary profit from the life insurance business, thenon-life insurance business and banking business rose 81.3%, to ¥36.3
billion; 30.3%, to ¥1.5 billion, and 28.2%, to ¥ 1.4 billion, respectively.
As a result, consolidated net income increased 92.0% year on year, to¥23.3 billion.

2

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2009
 Life insurance： Ordinary revenues increased year on year, due to higher

income from insurance premiums associated with an increased policy amountin force, as well as increases in investment income boosted by a relatively
favorable financial market environment. Ordinary profit rose due primarily toincreased insurance premiums, higher gains from investment, net, on generalaccount assets and a change from provision into reversal of policy reserve forminimum guarantee for variable life insurance.
 Non-life insurance: Ordinary revenues increased year on year, owing toincreases in net premiums written, reflecting a growing number of its mainstay
automobile insurance policies. Ordinary profit increased due mainly to theincrease in ordinary revenues and a decline in the net expense ratio.
 Banking business: Despite a decrease in ordinary revenues year on year,
affected by global reductions in interest rates, ordinary profit increased, due toincreases in net interest income, bolstered primarily by decreases in interest
expenses and the growing balance of mortgage loans.
 Consolidated ordinary revenues, ordinary profit, and net income grew year on
year, amounted to ¥481.2 billion, up 14.6%; ¥39.4 billion, up 75.6%; and ¥23.3
billion, up 92.0%, respectively.

33Highlights of Operating Performance:
Sony Life (Non(Non-Consolidated)(Billions of yen)(Billions of yen)

Ordinary profit

Ordinary revenues+16.3%

432.5

371.8

+82.5%

19.9

432.5

+60.6

Income from insurance premiums

327.0

339.3

+12.2

+3.8%

Investment income

43.2

91.5

+48.2

+111.6%

Interest income and dividends

26.9

32.9

+5.9

+22.1%

Income from monetary trusts, net

6.8

9.5

+2.7

+40.6%

Gains on sale of securities

8.2

9.7

+1.4

+17.9%

-

38.1

+38.1

-

351.8

396.0

+44.2

+12.6%

Insurance claims and other payments

125.8

134.4

+8.5

+6.8%

Provision for policy reserve and others

140.8

197.3

+56.5

+40.1%

Investment expenses

32.9

10.7

(22.2)(67.5%)

1.3

5.3

+3.9

+294.3%

Devaluation losses on securities

2.9

-

(2.9)

-

Losses on separate accounts, net

24.1

-

(24.1)

-

46.8

47.5

+0.6

+1.4%

Ordinary profit

19.9

36.4

+16.4

+82.5%Net income

10.8

21.7

+10.8

+100.2%09.3.3109.9.30

Change from 09.3.31

Ordinary expenses

Losses on sale of securities

FY08.1H

FY09.1H

Sony Life
Ordinary revenues and ordinary profit increased year onyear.
Income from insurance premiums Increased due to anincreased policy amount in force.
Gains from investment, net, rose.
Ordinary profit rose due to increased insurance
premiums, higher gains from investment, net, on generalaccount assets and a change from provision into reversalof the policy reserve for minimum guarantee for variable
life insurance.

Operating expenses(Billions of yen)

08.9.30+16.3%

Securities

2,449.0

2,819.6

3,087.2+267.6

Policy reserve

3,514.8

3,592.3

3,787.2+194.9+5.4%

Total net assets

135.1

140.7

173.2

+32.5

+23.1%+442.8%Net unrealized gains/losses onother securities

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

Change371.8

Gains on separate accounts, net

36.4

FY09.1H

FY08.1H

Ordinary revenues

Separate account assets

+9.5%

21.3

4.0

21.7

+17.7

3,785.3

3,810.9

4,042.0+231.0

+6.1%

310.0

275.1

331.8

+56.6

+20.6%

4Highlights of Sony Life’s operating performance (on a non-consolidated
basis) are shown here.
Sony Life’s ordinary revenues increased 16.3% year on year, to ¥432.5
billion, due to higher income from insurance premiums associated with anincreased policy amount in force, as well as increases in investment
income.
Income from insurance premiums grew 3.8% from the same period of theprevious fiscal year, to ¥339.3 billion, associated with a higher policy
amount in force. Investment income increased 111.6% year on year, to¥91.5 billion, due to increases in gains on separate accounts, net, and ininterest income and dividends in line with growing balance of ultralongterm bonds.
Ordinary expenses increased 12.6% year on year, to ¥396.0 billion, due
primarily to increased provision for policy reserve and others associatedwith favorable investment performance in separate accounts. Investment
expenses decreased 67.5% year on year, to ¥10.7 billion, as losses on
separate accounts, net, for the same period of the previous fiscal year,
turned into gains.
Ordinary profit increased 82.5% year on year, to ¥36.4 billion, due
primarily to increased insurance premiums, higher gains from investment,
net, on general account assets, and a change from provision into reversalof policy reserve for minimum guarantee for variable life insurance.
As a result, net income increased 100.2% year on year, to ¥21.7 billion.

4

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

FY08.1H

FY09.1H

ChangeNew policy amount

1,894.7

1,818.4(4.0 %)

Lapse and surrenderamount979.3

1,060.5+8.3%

Lapse and surrender rate

3.11%

3.27%

+0.16pt

Policy amount in force

32,065.4

32,897.5+2.6%

Annualized premiums
from new policies

30.9

32.0

+3.5%

6.5

7.7

+18.5%

540.9

558.4

+3.2%

124.5

129.6

+4.1%

Of which, third-sector products

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

FY08.1H

FY09.1H(Reasons for changes)
 Declined due to a decline in sales of variable life
insurance Despite an increase year on year, the lapse andsurrender rate decreased compared with 3.67% of thesecond half fiscal 2008

 Increased substantially in the third sector, owing
mainly to favorable sales of cancer hospitalization
insurance, launched in April 2009

ChangeGains from investment,net (General account)

34.4

42.6

Core profit

16.5

28.5

+72.9%

Negative spread

10.6

8.8

(17.0%)+23.9%

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

 Increased due primarily to increased interest income
and dividends and higher gains on sale of securities
 Rose owing to increased interest income anddividends, as well as a change from provision
into reversal of the policy reserve for minimum
guarantee for variable life insuranceLine item amounts are truncated below ¥100 million;
percentage change figures are rounded.

5

Here is an overview Sony Life’s performance.

5

Sony Life Operating Performance (1)New Policy Amount

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)(Trillions of yen)(Billions of yen)(Thousands of policies)

Annualized premiums from new policies
2.5

2

Number of new policies

New policy amount

+4.8%

255
1.87

276

300

264

Of which, third-sector products

40
35

1.89

1.81
（4.0%）

+3.5%

32.0

31.2

30.9

6.5

6.5

7.7

FY07.1H

FY08.1H

FY09.1H

30
200

1.5

25
20

1

15
100

10

0.5

+18.5%
5

0

0

FY07.1H

FY08.1H

FY09.1H

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

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

6(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities decreased 4.0% from the same period of the previous fiscal
year, to ¥1.81 trillion, owing mainly to a decline in sales of variable life
insurance. The number of new policies increased 4.8% year on year, to
276 thousand policies.
(Right-hand graph)
Annualized premiums from new policies increased 3.5%, to ¥32.0 billion.
Of this amount, the figure for third-sector products was ¥7.7 billion, up
18.5% year on year, owing mainly to favorable sales of cancer
hospitalization insurance, which commenced sales in April 2009.
Despite increases in the number and annualized premiums of newpolicies, the new policy amount decreased. This situation reflectedfavorable sales of cancer hospitalization insurance, launched in April
2009, which has no new policy amount but are accounted for in terms ofthe number and annualized premiums of new policies.

6Sony Life Operating Performance (2)Policy Amount in Force

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

Policy amount in force(Trillions of yen)
40

4.58
32.0

30

Number of policies in force

+5.8%

4.70

+3.0%

32.5

+1.2%

4.84

(Billions of yen)

(Millions of policies)
5

Annualized premiums from insurance in force
Of which, third sector

600

32.8

+3.2%
540.9

558.4

547.8

4

+1.9%

500

+2.6%
3

400

20

300
2

200

+4.1%

10
1

100

0

0
08.9.30

09.3.3109.9.30

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

124.5

126.6

08.9.30

09.3.31

+2.4%

129.6

0

09.9.30

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

7(Left-hand graph)
Policy amount in force for the total of individual life insurance andindividual annuities grew steadily, to ¥32.8 trillion as of September 30,
2009, up 2.6% from September 30, 2008, and up 1.2% from March 31,
2009. The number of policies in force increased 5.8% year on year, andup 3.0% from March 31, 2009, to 4.84 million policies.
(Right-hand graph)
Annualized premiums from total policies as of September 30, 2009,were up 3.2% from September 30, 2008, and up 1.9% from March 31,
2009, totaling ¥558.4 billion. Of this amount, the figure for third-sector
products was up 4.1% from September 30, 2008, and up 2.4% fromMarch 31, 2009, to ¥129.6 billion.

7

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

Solvency Margin Ratio（Individual Life Insurance + Individual Annuities）＜Full Year and 1H＞(％)

Lapse and surrender rate (based on policy amount, full year)

(％)
2,500

2,433.8+373.3pt

Lapse and surrender rate (based on policy amount, 1H）

10

2,060.5
2,000

8

6.79
6.12

1,665.4(Full year)

5.79

1,500

6
+0.16pt

4

2.81

3.01

3.11

3.27

1,000

(1H)
500

2

0

0
FY06

FY07

FY08

FY09.1H

08.9.30

09.3.3109.9.30*Figures for lapse and surrender rates are calculated without offsetting policies that are reinstated.

8(Left-hand graph)
The left-hand graph shows the lapse and surrender rate. The lapse andsurrender rate for the six months ended September 30, 2009 rose 0.16
percentage points from the same period of the previous fiscal year, to3.27%. Despite an increase year on year, the lapse and surrender rate
decreased compared with 3.67% of the second half fiscal 2008.
(Right-hand graph)
As of September 30, 2009, Sony Life’s solvency margin ratio was
2,433.8％, up 373.3 percentage points from March 31, 2009, due toless price fluctuation risk amounts, mainly resulting from reduced
holdings of Japanese stocks.

8

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

Ordinary Profit(Billions of yen)

400

+3.8%

350

318.5

339.3

40

36.4

327.0

300

+82.5%
30

250

24.0
200

19.9

20
150

100

10

50

0

0
FY07.1H

FY08.1H

FY09.1H

FY07.1H

FY08.1H

FY09.1H

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

9(Left-hand graph)
Income from insurance premiums grew 3.8% from the same period of
the previous fiscal year, to ¥339.3 billion, associated with a higher policy
amount in force.
(Right-hand graph)
Ordinary profit increased 82.5% year on year, to ¥36.4 billion, due toincreased insurance premiums, higher gains from investment, net, on
general account assets and a change from provision into reversal of thepolicy reserve for minimum guarantee on variable life insurance.

9

Sony Life Operating Performance (5)Core Profit

Negative Spread(Billions of yen)(Billions of yen)

28.5

30

20

+72.9%
15

14.4

20

16.5

10.6

13.9

(17.0%)

8.8

10

10
5

0

0
FY07.1H

FY08.1H

FY09.1H

FY07.1H

FY08.1H

FY09.1H

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

10(Left-hand graph)Core profit rose 72.9% year on year, to ¥28.5 billion, as a result of anincrease in interest income and dividends, as well as a change fromprovision into reversal of policy reserve for minimum guarantee forvariable life insurance.
(Right-hand graph)
In line with the increase in interest and dividend income, the negative
spread narrowed 17.0% year on year, to ¥8.8 billion.

10

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

Number of Independent Agents(Agents)(Employees)

2,500
2,151

3,971

4,000
3,891
3,779

2,080

2,112

2,000

3,830

2,080

(32)

+80
1,500

3,500

1,000

500

0
3,000

0
08.3.3108.9.30

09.3.3109.9.30

08.3.3108.9.30

09.3.3109.9.30

11(Left-hand graph)
The number of Lifeplanner sales employees as of September 30, 2009,
was 3,971, up 80 from March 31, 2009.
(Right-hand graph)
The number of independent agents decreased 32 from March 31, 2009,
to 2,080.

11Sony Life Operating Performance (7)Breakdown of General Account Assets (based on the real status)
Amounts for individual items included in monetary trusts (Japanese government bonds, corporate bonds, CBs, Japanese stocks and other)have been broken down into their original investment categories.
Japanese government and corporate
bonds account for a large share ofgeneral account assets

Japanese government andcorporate bonds (excl. CBs)

Continuously accumulated ultralong-termbonds to be held to maturity since FY08.
↓

CBs
63.1%

<Lengtheningof assets duration>
<L

75.1%
79.5%

Japanese stocks
Foreign securities
Policyholder loans

11.5%
5.0%

Real estate

5.8%
3.3%
2.4%
3.7%
5.3%

8.4%
1.7%
3.5%
3.4%
2.3%
1.6%
3.9%

4.2%
1.6%
2.9%
3.3%
2.2%
2.7%
3.5%

08.9.30

09.3.3109.9.30

3,475.3

3,535.7

3,710.1

Total(Billions of yen)

08.3.31

8.7 years

09.3.3113.6 years

09.9.30

15.3 years

Consistently decreasing remainder ofconvertible bonds through sale andredemption.

Cash and call loans
Other*The breakdowns shown at left are different from those shown in
Chapter 3, “Status of Investment of Assets (General Account
Assets)” on page 5 of the “Summary Information on Sony Life’s
Financial Results for the Six Months Ended September 30, 2009,”
announced by Sony Life.

12

Here is a breakdown of Sony Life’s general account assets as of
September 30, 2009, compared with those as of September 30, 2008,
and March 31, 2009.
Amounts for individual items included in monetary trusts (Japanese
government bonds, corporate bonds, CBs, Japanese stocks and other)have been broken down into their original investment categories,
aiming at showing the portfolio breakdown based on the real status.
Sony Life strives to continue increasing its investment in ultralong-termbonds, mainly Japanese government and corporate bonds since
FY2008. Japanese government and corporate bonds excluding
convertible bonds account for 79.5％of general account assets as of
September 30, 2009. As a result of lengthening assets duration, it
became 15.3 years as of September 30, 2009.
Sony Life strives to continue increasing its investment in ultralong-termbonds. In the second half of this fiscal year, we will maintain this policy.
Please refer to the page 13 for the breakdown based on theconventional method, solely for the convenience for comparison
between the former version.

12Sony Life Operating Performance (8(8)
Breakdown of General Account Assets (based on the conventional method)
Japanesegovernment andcorporate bonds(incl. CBs)Japanese stocks

52.4%

67.4%

70.3%

Foreigngovernment andcorporate bonds
Foreign stocks

4.2%
4.3%
0.8%
25.0%

1.4%
2.7%
0.6%
17.2%

3.3%
2.4%
3.7%
4.1%

Total

3.4%
2.3%
1.6%
3.3%

Monetary trusts

Notes:

Policyholder loans

Japanese stocks and convertible bonds (CBs) ingeneral account assets as of September 30, 2009were as follows:* Figures in parentheses, ( ), are as of September 30, 2008.

1.5%
0.5%2.3%
Real estate

14.4%
3.3%
2.2%
2.7%
2.8%

08.9.30

09.3.3109.9.30

3,475.3

3,535.7

3,710.1

Cash and call
loans
Other

Japanese stocks: ¥58.5 billion (¥173.9 billion)
Of which, Japanese stocks in monetary trusts:¥1.9 billion (¥28.4 billion)
Accounting for 1.6% (5.0%) of total generalaccount assets.
CBs: ¥157.6 billion (¥399.2 billion)
Of which, CBs in monetary trusts: ¥37.2 billion（¥136.7 billion)
Accounting for 4.2% (11.5%) of total generalaccount assets.

(Billions of yen)

13

Breakdown of General Account Assets (based on the conventional
method)13

Sony Life Operating Performance (9(9)
Net Unrealized Gains/Losses on Available-for-Sale Securities with Market Value(Billions of yen)Japanesegovernment andcorporate bonds

08.9.30

09.3.3109.9.30

Change from09.3.31

19.0

26.9

44.8

+17.8

(19.5)(21.2)

(2.7)

+18.4

Japanese stocks

24.1

1.4

7.7

+6.3

Foreign securities(12.1)

(3.6)

(1.4)

+2.2

Other securities

1.9

(0.5)

0.9

+1.5

Total

33.0

24.2

52.1

+27.9

CBs

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.” but excludes trading-purpose securities and held-to-maturity securities.
3) As of September 30, 2009, the weighted-average fair value of convertible bonds held by Sony Life was ¥96.9. The average remaining period was 2.8 years(In the event that Sony Life executes put options, the average remaining period would be 2.2 years.)

14

Here, you see net unrealized gains/losses on available-for-salesecurities with market value in the general account assets.

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

30.7

Ordinary profit(Billions of yen)

Underwriting income+30.3%

FY08.1H

FY09.1H

30.7

33.9

+3.2

+10.7%

30.3

33.6

+3.2

+10.8%

ChangeOrdinary revenues

1.1

FY08.1H

33.9+10.7%

1.5(Billions of yen)

FY09.1H

Sony AssuranceOrdinary revenues and ordinary profit increased,
year on year.
Ordinary revenues amounted to ¥33.9 billion, up
10.7% year on year. Net premiums written
amounted to ¥33.6 billion, up 10.8% year on year,
owing to an increase in the number of policies inforce for mainstay automobile insurance.
Ordinary profit amounted to ¥1.5 billion, up 30.3%
year on year, due mainly to the increase in ordinary
revenues and a decline in the net expense ratio.

Investment income

0.3

0.3

+0.0

+6.0%

Ordinary expenses

29.5

32.4

+2.9

+9.9%

Underwriting
expenses

22.0

24.5

+2.4

+11.2%

Investment expenses

0.0

0.0

(0.0)

(6.8%)

Operating, generaland administrative
expenses

7.4

7.8

+0.4

+5.9%

Ordinary profit

1.1

1.5

+0.3

+30.3%Net income

0.6

1.0

+0.3

+48.0%

Change from09.3.3108.9.30

09.3.3109.9.30

Underwriting reserves

47.2

50.7

55.4

+4.6

+9.3%

Total net assets

15.9

13.6

14.8

+1.2

+8.9%

(0.1)

(0.1)

0.0

+0.1

-

84.3

86.6

93.3

+6.6

+7.6%

(Billions of yen)

Net unrealized gains/losses onother securities (net of taxes)

Total assets

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

15

Highlights of Sony Assurance’s operating performance are shown here.
Sony Assurance posted a 10.7% increase in ordinary revenues
compared with the same period of the previous fiscal year, to ¥33.9
billion, due to increased net premiums written, as the number of
insurance policies in force grew for strong sales of new policies in its
mainstay automobile insurance.
Ordinary profit increased 30.3% year on year, to ¥1.5 billion, owing
mainly to the increase in ordinary revenues and a decline in the net
expense ratio, resulting in net income of ¥1.0 billion, up 48.0% year on
year.

15

Overview of Performance:
Sony Assurance(Billions of yen)

FY09.1H

FY08.1H

ChangeDirect premiums written

30.1

33.4

+ 10.8%Net premiums written

30.3

33.6

+ 10.8%Net losses paid

14.1

16.1

+ 14.6%Net loss ratio

52.4%

54.0%

+ 1.6pt

Net expense ratio

26.2%

25.2%

(1.0pt)Combined ratio

78.6%

79.2%

+ 0.6pt

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.

Change from 09.3.31
08.9.30

09.3.3109.9.30

1.08 million

1.15 million

1.22 million+0.07 million+6.1%

1,096.5%

993.0%

1,033.6%-+40.6pt

NumberNumber of policies in force
Solvency margin ratio%

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.

16

Here is an overview of Sony Assurance’s performance.

16

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

Net Premiums Written(Millions of yen)

FY08.1H

FY09.1H

8

Fire(Millions of yen)

Change6(23.0%)

Fire

FY08.1H

FY09.1H

165

Change137(16.9%)

197(62.3%)

Marine---Personal accident

3,430

3,563

＋3.9%

Personal accident

3,284

3,442

＋4.8%

Voluntary automobile

26,62829,752＋11.7%

Voluntary automobile

26,731

29,868＋11.7%---

30,18133,448＋10.8%

MarineCompulsory
automobile liability
Total

265

291

＋ 9.5%

Compulsory
automobile liability

30,351

33,620＋10.8%Total

Net losses paid
(Millions of yen)
Fire
MarinePersonal accident
Voluntary automobile
Compulsory
automobile liability
Total

FY08.1H

FY09.1H

0

Change

0

＋1.5%

8

1

( 82.3%)619

705＋13.9%

13,256

15,216＋14.8%

239

258

＋7.6%

14,124

16,181＋14.6%

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

17

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

17

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force(Billions of yen)

Ordinary Profit(Millions of policies)

Voluntary automobile insurance
Others

Personal accident insurance
Number of policies in force

1.4

50

(Billions of yen)
2

1.22
45

1.08

+12.6%

1.2

40

33.6

35
30

0.2

30.3
3.4

+10.8%

0.3+30.3%

1

3.5
0.8

25
20

1.5
1.5

1.1
1

0.6

26.6

29.7

15

0.4

0.5

10
0.2
5
0

0
FY08.1H

FY09.1H

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

0

FY08.1H

FY09.1H

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

18(Left-hand graph)
Number of policies in force for the total of automobile insurance andmedical and cancer insurance increased steadily, rising 12.6% year on
year, to 1.22 million policies.
Net premiums written posted an 10.8% year-on-year increase, to ¥33.6
billion.
(Right-hand graph)
Ordinary profit rose 30.3% year on year, to ¥1.5 billion, owing mainly tothe increase in ordinary revenues and a decline in the net expense ratio.

18

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

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

Net expense ratio
100

89.0

Earned/incurred loss ratio

90.2

89.3

89.1
(0.2pt)80

Net expense ratio(%)

Net loss ratio

100

80

80.3

81.7

78.6

79.2
+0.6pt+0.8pt

60
62.3

63.5

63.9

63.1

53.5

40

20

60

55.0

+1.6pt

52.4

54.0

40

26.7

20

(1.0pt)

26.7

26.2

FY08

FY08.1H

25.2

0(1.0pt)

26.7

26.7

26.2

FY07

FY08

FY08.1H

25.2

0

FY07

FY09.1H

FY09.1H

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.

19(Left-hand graph)
To help you understand the actual condition of Sony Assurance, whichis in a growth phase, we show the combined ratio calculated using theearned/incurred loss ratio rather than the net loss ratio. For the six
months ended September 30, 2009, the earned/incurred loss ratio
increased 0.8 percentage points, to 63.9%, due to an increase ininsurance claims payments from the same period of the previous fiscal
year.
The net expense ratio dropped 1.0 percentage points, to 25.2%,
resulting from an increase in net premiums written and lower operating
expenses.
(Right-hand graph)
The net loss ratio rose 1.6 percentage points compared with the same
period of the previous fiscal year, to 54.0%. This is different from theearned/incurred loss ratio, which reflects a decrease in provision forreserve for outstanding losses, influenced by higher insurance claims
payments.
As a result, the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 0.6 percentage points year on year, to 79.2%.

19

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

1,400
1,200

1,096.5
993.0

1,000

+40.6pt

1,033.6

800
600
400
200
0
08.9.30

09.3.3109.9.30

20

As of September 30, 2009, Sony Assurance’s solvency margin ratio
was 1,033.6%, up 40.6 percentage points from March 31, 2009. Thesefigures show that Sony Assurance has maintained a sound financial
base.

20

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

17.7(Billions of yen)

15.2

+20.2%

1.6
FY08.1Q

FY08.1H

FY09.1H

Ordinary revenues(Billions of yen)

17.7

15.2

(2.4)

Gross operating profit

6.6

7.7

+1.1

+16.8%Net interest income

2.1

6.5

+4.4

+209.2%

Net fees and commissions

0.1

0.01

(0.08)(88.8%)Net other operating income

4.3

1.1

(3.2)

(74.2%)

General andadministrative expenses

4.9

5.6

+0.7

+14.3%

Ordinary profit

1.6

1.9

+0.3

+20.2%Net income

0.9

1.1

+0.1

+16.9%Net operating profit

1.6

2.1

+0.4

+25.6%

Ordinary profit（13.8 %）

1.9
FY09.1Q

Sony Bank
Despite a decrease in ordinary revenues, ordinary profit increased
year on year.
Gross operating profit increased ¥1.1 billion year on year due to anincrease in net interest income.
- Net interest income increased ¥4.4 billion due to higher interest
on loans and a decline in interest on deposits in the lowering ofinterest rates.
- Net other operating income decreased ¥3.2 billion mainly because
gains from derivatives, net, held for hedging purposes,
turned into losses.
Net income increased ¥0.1 billion year on year.
Customer assets were up ¥27.6 billion from March 31, 2009.

(Billions of yen)

Change(13.8%)

Change from09.3.3108.9.30

09.3.3109.9.30

Securities

667.3

823.1

804.5

(18.6)(2.3%)

Loans

400.0

477.0

534.3

+57.2

+12.0%

Deposits

1,338.2

1,326.3

1,334.8

+8.4

+0.6%

Customer assets

1,433.1

1,403.6

1,431.3

+27.6

+2.0%

Total net assets

36.6

46.2

57.4

+11.2

+24.2%(15.6)(9.6)(0.08)+9.6－

1,423.1

1,411.9

1,445.1

+33.2

+2.4%

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
and net unrealized gains/losses on other securities; percentage change figures are rounded.

21

Highlights of Sony Bank’s operating performance (on a nonconsolidated basis) are shown here.
Sony Bank’s ordinary revenues decreased 13.8% compared with thesame period of the previous fiscal year, to ¥15.2 billion, reflecting
global reductions in interest rates.
Gross operating profit increased 16.8% from the same period of theprevious fiscal year, to ¥7.7 billion, led by an increase in net interest
income. This was due mainly to a decline in interest on deposits in linewith lower interest rates and higher interest on loans. Nevertheless, net
other operating income decreased, as gains from derivatives, net, held
for hedging purposes, turned into losses.
As a result, ordinary profit increased 20.2% year on year, to ¥1.9 billion,
resulting in net income of ¥1.1 billion, up 16.9% year on year.

21

Overview of Performance:
Sony Bank (Non(Non-Consolidated) (1)(Billions of yen)

08.9.30

09.3.3109.9.30

Change from 09.3.31
Amount/Number%

Customer assets

1,433.1

1,403.6

1,431.3+27.6

Deposits

1,338.2

1,326.3

1,334.8

+8.4

+0.6%

Yen

1,079.7

1,044.2

1,020.8(23.4)(2.2%)

258.4

282.1

314.0

+31.8

+11.3%

94.9

77.2

96.5

+19.2

+24.9%

400.0

477.0

534.3

+57.2

+12.0%

391.5

468.3

525.9

+57.6

+12.3%

8.4

8.7

8.4

(0.3)

(3.8%)

Number of accounts(thousands)

670

723

750

+26

+3.7%

Capital adequacy ratio*(domestic criteria)

8.88％

13.37%

13.41 %

Foreign currency
Investment trusts
Loans
Mortgage loans
Other

+2.0%

+ 0.04pt* Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P26.

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

22

Here is an overview of Sony Bank’s performance.

22

Overview of Performance:
Sony Bank (Non(Non-Consolidated) (2)■On an Internal Control Basis(Billions of yen)

FY08.1H

FY09.1H

6.6

7.7

+1.1

+16.8%Net interest income *1 ①

5.7

6.6

+0.8

+15.7%Net fees andcommissions *2 ②

0.7

0.6

(0.0)

(5.8%)

Gross operating profit

Net other operating
income *3

0.1

+0.2

+144.4%

6.4

7.2

+0.8

+13.3%

Operating expenses ③

4.9

5.6

+0.7

+14.3%Net operating profit(core profit)

1.4

1.6

+0.1

+11.6%(Billions of yen)2

+11.6％
1.5

0.4

Gross operating profit(core profit) (A)<Reference>
Net Operating Profit (Core Profit)

Change

1.6

1.4

1

= ①＋②
0.5

= (A)－③
0
FY08.1H

FY09.1H●On an Internal Control Basis
The following adjustments are made to the figures on a financial accounting basis to account 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 adjustment (*1 and *2), consists of profits and losses for bond and derivative dealing transactions.
●Core profit
Profits and losses exclude net other operating income, including those for bond and derivative dealing transactions, and stands for Sony Bank’s
basic profits.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

23

The table on the right indicates profits on an internal control basis.
The internal control basis is a method we use to describe profit conditions
more appropriately, so these figures are adjusted from profit on a financial
accounting basis, according to the notes shown below the tables.
(Left-hand table)
Net interest income on an internal control basis shows real profit from fundinvestment. For the six months ended September 30, 2009, on theinvestment side interest on loans increased due to the growing balance ofmortgage loans. On the financing side, interest expenses decreased owing to
global reductions in interest rates. As a result, net interest income increased¥0.8 billion, to ¥6.6 billion.
Net fees and commissions on an internal control basis, which shows a profit,
primarily adjusts gains/losses from the sale/purchase of foreign exchangewith individual customers. This amounted to ¥0.6 billion, nearly unchanged
year on year.
Consequently, gross operating profit on a core profit basis, an indicator of thechanges in Sony Bank’s basic profitability, increased 13.3% year on year, to¥7.2 billion. This figure is calculated as the sum of net interest income andnet fees and commissions on an internal control basis.
(Right-hand graph)
Net operating profit on a core profit basis rose 11.6% year on year, to ¥1.6
billion.
Looking at the first half fiscal 2009, operating performance on a core profit
basis shows that the bank’s basic profitability is increasing steadily .

23Sony Bank Operating Performance (1)<Reference> Interest Spread (Internal Control Basis)
Interest spread

2.50%

Yield on investment
Yield on financing

2.07%
2.00%

1.94%
1.73%
1.64%

1.53%

1.50%

1.28%
1.09%
1.00%

0.78%

0.84%

0.91%

0.95%

0.82%
0.69%

0.50%

0.92%

0.61%

0.00%
FY08.2Q

FY08.3Q

FY08.4Q

FY09.1Q

FY09.2Q

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

This chart shows the interest spread on an internal control basis. The
yield on financing has been dropping continuously due to a global
reduction in interest rates, while the bottoming out of the yield on
investment has been relatively gradual.
As a result, the interest spread has been stable at around 0.9%.

24Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
and Number of Accounts
Yen deposits
Foreign currency deposits
Investment trusts
Number of accounts (thousands) +26

723(Billions of yen)
1,600

670
1,433.1

1,400

1,403.6

750

Loans

(Billions of yen)
600

Mortgage loans

Other

534.3
+27.6

1,431.3
96.5

500

8.4

477.0
+57.2

1,200

314.0

400

400.0

1,000

525.9

300
800

1,020.8600

Deposits total:¥1,334.8 billion

200

400

100
200

0

0
08.9.30

09.3.3109.9.30

08.9.30

09.3.3109.9.30

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

25(Left-hand graph)
As of September 30, 2009, customer assets (the sum of deposits andinvestment trusts) were up ¥27.6 billion from March 31, 2009, to¥1,431.3 billion.
As for the breakdown of customer assets as of September 30, 2009,
deposits (the sum of Japanese and foreign currency deposits)
amounted to ¥1,334.8 billion, up ¥8.4 billion compared with March 31,
2009, and investment trusts were ¥96.5 billion, up ¥19.2 billion.
As of September 30, 2009, the number of accounts was 750 thousand,up 26 thousand accounts from March 31, 2009.
(Right-hand graph)
Loans expanded steadily, to ¥534.3 billion, up ¥57.2 billion from March
31, 2009, owing to a growing balance of mortgage loans.

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

Balance of Securities by Credit Ratings(%)
20(Billions of yen)
1,200

AAA

AA

A

BBB

BB

Other
15

1,000

13.41

13.37
804.5

823.1

+0.04pt

800(18.6)

667.3

10

8.88

600

5

400

200

0
08.9.30

09.3.3109.9.30

Note: During the year ended March 31, 2009, Sony Bank raised its capital by¥12.0 billion by allocating its shares to Sony Financial Holdings.

008.9.30

09.3.31

Amounts are truncated below ¥100 million.

09.9.30* 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.

26(Left-hand graph)
As of September 30, 2009, the balance of securities decreased ¥18.6
billion, to ¥804.5 billion from March 31, 2009.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of September 30, 2009, Sony Bank’s non-consolidated capital
adequacy ratio (domestic criteria) was 13.41%, up 0.04 percentage
points from March 31, 2009. These figures indicate that Sony Bank has
maintained a sound financial base.

26

Consolidated Financial Forecast
for the Year Ending March 31, 2010
(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)
FY09

FY09
(Forecast)

Consolidated ordinary revenues(Updated
Forecast)

860.3+ 9.7%

808.7

852.0

766.2

+11.2%

65.3

66.3

61.8

+ 7.1%

26.1

26.1

33.3

（21.8%）

46.0

64.0

34.2

+ 86.8%

43.5

61.1

32.5

+ 87.8%

1.2

2.0

2.1

（8.2%）

1.3

1.3

(0.5)

－

36.0

30.7

+ 17.2%

Banking business

Consolidated ordinary profit
Life insurance business
Non-life insurance businessBanking business

Consolidated net income

24.0

Consolidated Ordinary Revenues
Banking business
Non-life insurance businessLife insurance business
944.0

860.3
800

600

(Forecast)
Forecast)

200

0
FY08

FY09

■Life insurance business

944.0

Non-life insurance business

400

ChangeFY09 forecast
vs FY08 actual

900.0Life insurance business(Billions of
yen)
1,000

FY08
(Actual)Consolidated Ordinary Profit(Billions of
yen)
70
65
60
55
50
45
40
35
30
25
20
15
10
5
0
-5

Banking business
Non-life insurance businessLife insurance business

SFH revised the financial results forecast for
FY09, owing to favorable operating
performance for FY09 1H, as well as expected
increases in interest income and dividends
resulting from the continued purchase ofultralong-term bonds.

■Non-life insurance business
SFH revised its financial results forecast for
FY09, as ordinary revenues and ordinary profit
for FY09 1H exceeded our forecast, due toexpanding business operations primarily in
automobile insurance.

■Banking Business
64.0

The financial forecasts for FY09 remainunchanged, reflecting uncertainty in thefinancial market environment for FY09 2H,
although their operating results for FY09 1H
exceeded our forecast.

34.2(Forecast)
Forecast)

FY08

FY09

27

Here is our consolidated financial forecast for the fiscal year ending
March 31, 2010.
During the six months ended September 30, 2009, operating results forthe life insurance business exceeded our previous forecast.
Consequently, we revised upward our consolidated financial forecast for
the year ending March 31, 2010, on October 30, 2009.
By segment, SFH revised the financial results forecast of the life
insurance business for the year ending March 31, 2010, owing tofavorable operating performance for the six months ended September
30, 2009, as well as expected increases in interest income anddividends resulting from the continued purchase of ultralong-term bonds.
As also for the non-life insurance business, SFH revised its financial
results forecast for the year ending March 31, 2010, as ordinary
revenues and ordinary profit for the six months ended September 30,
2009, exceeded our forecast, due to expanding business operations,primarily in automobile insurance. As for the banking business, financial
forecasts for the year ending March 31, 2010, remain unchanged,
reflecting uncertainty in the financial market environment in the second
half of this fiscal year, although their operating results for the first half
exceeded our forecast.

27

Appendix

28

Appendix28

Recent Topics
Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for approx. 36% of the amount of
new mortgage loans.
* 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.
* Sony Life started handling automobile insurance in May 2001.

Recent topics
2009-7-1

Sony Assurance launched a Mobile GPS Service for automobile insurance policyholders

2009-7-1

Sony Life opened representative office in Taipei

2009-7-23

Sony Life entered tie-up with specified nonprofit organization Yuigon Sozoku Legal Network

2009-8-24

Sony Bank Securities commenced offering margin trading

2009-8-27

Sony Bank entered syndicated loan business2009-8-27

AEGON Sony Life Insurance Company gained final approval to launch business in Japan(planned to commence operations on Dec1, 2009)2009-10- 1 Sony Assurance commenced committing e-mail response within three hours(if responding between 9 am and 5 pm on weekdays)
2009-10-13 Sony Assurance launched automobile insurance sales via Jibun Bank
2009-11-2

Sony Life began offering Discount Rider for Nonsmokers and Others in Excellent Health29

Recent topics

29

Contact:

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

30

Contacts

30