Presentation Material

Consolidated Financial Results
for the Six Months Ended September 30, 2011

Sony Financial Holdings Inc.
November 14, 2011

Content■Consolidated Operating Results for the Six Months Ended September 30, 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 Six Months Ended September 30, 20113

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 2011 (1)(Billions of yen)

Ordinary revenues

496.2

Ordinary profit

509.9

+2.8%

+10.4

+2.4%

49.5

28.1

(21.4)(43.3%)

Non-life
insurancebusiness

Ordinary revenues

37.1

39.9

+2.8

+7.6%

0.6

0.7

+0.0

+9.3%

15.4

15.9

+0.5

+3.3%

1.2

1.9

+0.6

+56.7%

(0.9)

(0.9)

(0.0)

-

0.0

0.0

(0.0)

(0.7%)

496.2

509.9

+13.7

+2.8%

Ordinary profit

51.5

30.8

(20.7)(40.2%)Net income

29.4

16.3

(13.0)(44.4%)

Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues
Ordinary profit
Ordinary revenues

Consolidated

FY11.1H(Billions of yen)

454.9

Ordinary profit(40.2%)

FY10.1H

444.5

ChangeOrdinary revenues

Intersegment
adjustments*

30.8

FY11.1HLife
insurancebusiness

Bankingbusiness

51.5

FY10.1H

Consolidated(Billions of yen)

10.9.30

11.3.3111.9.30

Change from 11.3.31

Total
assets6,295.4

6,597.1

6,816.8+219.7

+3.3%

299.8

294.8

322.5

+27.6

+9.4%

Net assets*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive income: FY10.1H: ¥36.9 billion, FY11.1H: ¥35.1 billion.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

4

Highlights of Consolidated Operating Performancefor the Six Months Ended September 30, 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, due to higher net premiums written, as

the number of insurance policies in force grew, primarily for automobile insurance. Ordinary profit
expanded, due mainly to a rise in ordinary revenues and a reversal of catastrophe reserve, which
offset the negative impact of a rise in the loss ratio, driven by higher insurance claim payments forautomobile insurance.

 Banking: Ordinary revenues increased year on year, owing to the acquisition of shares in SmartLink

Network, Inc. by Sony Bank; ordinary revenues of the newly acquired company are included in thescope of consolidation. Ordinary profit rose, due to a rise in gross operating profit, reflecting adecrease in interest expenses on yen deposits and higher interest income on loans, led by the growing
balance of mortgage loans.

 Consolidated ordinary revenues increased 2.8% year on year, to ¥509.9 billion, however, consolidated

ordinary profit decreased 40.2%, to ¥30.8 billion. Net income decreased 44.4%, to ¥16.3 billion.

 SFH Group has no GIIPS* sovereign bonds.
*As of September 30, 2011
*GIIPS stands for Greece, Ireland, Italy, Portugal and Spain.
*Exposure of Sony Life is for general account assets.

5

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

444.3

FY11.1H

+2.4%

444.3

454.8

+10.4

+2.4%

Income from insurance premiums

371.0

395.7

+24.6

+6.7%

Investment income

71.1

52.0

(19.1)(26.9%)

Interest income and dividends

42.3

47.4

+5.1

+12.1%

Income from monetary trusts, net

4.3

2.6

(1.7)

(39.1%)

Gains on sale of securities

24.4

1.9

(22.5)(92.2%)

394.3

426.2

+31.9

+8.1%

Insurance claims and other payments

132.0

137.2

+5.2

+4.0%

Provision for policy reserves and others

179.3

200.8

+21.5

+12.0%

Investment expenses

27.1

29.3

+2.2

+8.2%

Losses on sale of securities

0.7

1.5

+0.8

+117.2%Losses on separate accounts, net

21.4

21.8

+0.4

+2.0%

49.0

51.5

+2.5

+5.1%

Ordinary profit

50.0

28.5

(21.4)(42.9%)Net income

28.9

15.6

(13.3)(46.0%)(Billions of yen)
Ordinary revenues

454.8(42.9%)

Ordinary expenses

28.5

50.0

FY10.1H

FY10.1H

Ordinary profit

FY11.1H

Operating expenses(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, reflecting the process of shifting its bond holdings toultralong-term bonds to reduce interest rate risk, although interest
income and dividends increased in the general account assets.
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.

Change10.9.30

11.3.3111.9.30

Change from 11.3.31

Securities

3,824.7

4,017.5

4,237.7+220.1+5.5%

Policy reserves

4,163.5

4,371.4

4,572.3+200.8+4.6%

Total net assets

222.4

215.3

242.4

+27.0

+12.5%

24.6

7.0

27.4

+20.4

+291.8%4,487.8

4,723.3

4,922.5+199.2

+4.2%

367.2

398.1

392.6

(5.5)

(1.4%)(Billions of yen)

Net unrealized gains on other securities
Total assets
Separate account assets

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

6

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

FY10.1H

FY11.1H

ChangeNew policy amount2,068.4

2,051.7(0.8%)

Lapse and surrender amount

1,039.2

1,022.4(1.6%)

Lapse and surrender rate

3.11%

2.95%

(0.16pt)

Policy amount in force

34,118.5

35,371.1+3.7%

Annualized premiums from new policies

34.9

33.2

(4.8%)Of which, third-sector products

7.9

8.1

+2.0%

589.6

618.0

+4.8%

136.6

144.7

+5.9%

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

FY10.1H

FY11.1H

ChangeGains from investment, net (General account)

65.4

44.5

(32.0%)

Core profit

26.8

31.6

+18.0%

Negative spread

4.1

1.9

(53.7%)

Solvency Margin Ratio

10.9.30

11.3.3111.9.30

Changefrom
11.3.312,992.8%

2,900.1%

3,148.0%+247.9pt

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.

(Reasons for changes)
 Decreased slightly, due mainly to lower sales offamily income insurance, which is life insurancewith disability benefit, despite favorable sales ofterm-life insurance, living benefit insurance andnursing-care insurance.

 Decreased due to the lowering lapse andsurrender rates mainly in family income insurance,
which is life insurance with disability benefit,
though those in term life insurance increased.
 Decreased, due mainly to lower sales of cancer
hospitalization insurance and educational
endowment insurance.

 Decreased due to lower gains on sale of securities
despite an increase in interest income anddividends.
 Increased reflecting lower insurance payments for
the Great East Japan Earthquake of March 2011
than formerly expected, and a decline in negative
spread.

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(Trillions of yen)276

Number of new policies(Thousands of policies)

295(4.0%)

283

300

Annualized premiums from new policies

Of which, third-sector(Billions of yen)

3.0
15,00034.9(4.8%)

33.2

32.0
2 05
2.05

2 06
2.06
10,000
1.0

1.81

200

(0.8%)

100

5,000
0.5

+2.0%

7.7

7.9

8.1

0

0
FY09.1H

FY10.1H

FY11.1H

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

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

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(Trillions of yen)
50

Number of policies in force

Annualized premiums from insurance in force(Millions of policies)
+6.3%

5.17

5.49

5.34

(Billions of yen)
700

+2.9%

5
600

40

34.1

Of which, third-sector

+3.7%

35.3

34.7

4

+4.8%

589.6

604.7

618.0
+2.2%

500

+1.8%
30
3

400

300

20

2
200

10

1

0

0

10.9.30

11.3.3111.9.30

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

100

+5.9%

136.6

140.7

10.9.30

11.3.31

+2.9%

144.7

0

11.9.30

Line item amounts are truncated below ¥100 million;
percentage change figures are rounded9Sony Life Operating Performance (3)Lapse and Surrender Rate*

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

Lapse and surrender rate
（1H）

Lapse and surrender rate
（Annual）

（％）

3,500

3,148.0

10

8

3,000

2,992.8

2,900.1

7.21
6.41

6

2,500

+247.9pt<Reference>
New solvency margin ratio effective
as of the end of FY11

March 31, 2011 : 1,720.0%
September 30, 2011 : 1,940.6%

4(0.16pt)

3.27

3.11

2

2,000

2.95

Variation factor from the previous standard ：◆Change of includable amount for margin calculation◆Stricter risk measurement

1,500
0

0
FY09

FY10

FY11

*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.

10.9.30

11.3.3111.9.30

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 September 30, 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)

400

Ordinary Profit(Billions of yen)

371.0

+6.7%

395.7
100

339.3
80

300

60

50.0

200

40
100

(42.9%)

36.4
28.5

20

0

0
FY09.1H

FY10.1H

FY11.1H

FY09.1H

FY10.1H

FY11.1H

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)40

20

+18.0%

30

28.5

31.6
15

26.8

20

10

10

5

8.8

4.1
(53.7%)

01.9

0FY09.1H

FY10.1H

FY11.1H

FY09.1H

FY10.1H

FY11.1H

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

12

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

5,000

2,500

4,036

4,019

4,017

4,000

2,089

3,961

2,072

2,064

2,035

2,000

(56)

(29)

3,000

1,500

2,000

1,000

1,000

500

00

0
10.3.3110.9.30

11.3.3111.9.30

10.3.3110.9.30

11.3.3111.9.30* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

Sony Life Operating Performance (7)Breakdown of General Account Assets(Billions of yen)Japanese governmentand corporate bonds
Japanese stocks

11.3.31<Asset management review>

11.9.30

Amount%Amount%3,499.980.9%

3,734.7

82.4%

64.0

1.5%

48.1

1.1%

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

<Lengthened
asset duration>
<L

1.3%

10.3.3117.6 years

11.3.3118.5 years

29.7

0.7%

11.9.30

18.8 years

6.4%

286.7

6.3%

134.4

3.1%

137.0

3.0%

Real estate

75.1

1.7%

74.1

1.6%

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

Cash and call loans

80.0

1.9%

60.9

1.3%

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

Others

120.9

2.8%

98.9

2.2%

4,325.2

100.0%

4,529.9

100.0%

Foreign securities

44.2

1.0%

59.4

Foreign stocks

30.0

0.7%

Monetary trusts

276.4

Policy loans

Total

As of September 30, 2011: 88.8%, (As of March 31, 2011: 87.3%)

14

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit+7.6%(Billions of yen)

39.9

FY10.1H

0.7

+9.3%

FY11.1H

Change

39.9

+2.8

+7.6%

Underwriting income

36.7

39.4

+2.7

+7.5%

Investment income

0.3

0.4

+0.0

+15.8%

36.4

39.1

+2.7

+7.6%

Underwriting expenses

27.9

29.7

+1.8

+6.5%

Investment expenses

－

0.0

+0.0

－

Operating, general andadministrative expenses

8.4

9.4

+0.9

+11.3%

Ordinary profit

0.6

0.7

+0.0

+9.3%

Net income

0.3

0.4

+0.0

+16.1%

Ordinary expenses(Billions of yen)Ordinary revenues and ordinary profit increased year on year.
Ordinary revenues increased, due to an increase in net premiums
written led by a growing number of in-force policies primarily for
automobile insurance.
Ordinary profit increased due to an increase in ordinary profit anda reversal of catastrophe reserve which offset the negative impactof the rising loss ratio.

FY11.1H

37.1

Ordinary revenues

37.1

0.6

FY10.1H

10.9.30

11.3.3111.9.30

Underwriting reserves

62.3

64.0

67.6

+3.6

+5.6%

Total net assets

15.8

16.7

17.2

+0.4

+2.8%

103.9

109.3

114.6

+5.3

+4.8%

(Billions of yen)

Total assets

Change from 11.3.31

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

15

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

FY10.1H

FY11.1H

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

Direct premiums written

36.4

39.0

+7.3%

Net premiums written

36.7

39.4

+7.5%

Net losses paid

19.0

21.1

+11.4%

0.3

0.3(4.0%)Net loss ratio

58.2%

60.1%

+1.9ptNet expense ratio

24.7%

25.5%

+0.8ptCombined ratio

83.0%

85.7%

+2.7ptUnderwriting profit

Net 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 the reinforcementof corporate systems and infrastructure basedon the expansion of business operations.

 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.

10.9.30
Number of policies in force
Solvency margin ratio

11.3.3111.9.30

Change from 11.3.31+0.05 million

1.33 million

1.38 million

1.44 million

1,010.3%

981.4%

960.9%The number of policies in force is the total of automobile insurance andmedical and cancer insurance, which accounts for 99% of net premiums written.

+4.1%(20.5pt)

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

FY10.1H

FY11.1H

FY10.1H

Change(Millions of yen)
Fire

71

66

(7.7%)

Marine－－－Personal accident*

3,551

3,645

+2.6%

Voluntary automobile

32,78335,338

+7.8%

－

－

－

36,40639,049+7.3%

Compulsory
automobile liability
Total

FY11.1H

Change(Millions of yen)
Fire

3

64

－

Marine618+169.7%

Personal accident*

3,679

3,745

+1.8%

Voluntary automobile

32,64835,206

+7.8%

369

408

+10.6%

36,70739,443+7.5%

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

Net losses paid
FY10.1H

FY11.1H

Change(Millions of yen)
Fire

0

40

－

Marine711+56.1%

776

867+11.7%

17,927

19,866+10.8%

319

410+28.3%

19,031

21,196+11.4%

Personal accident*
Voluntary automobile
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

Ordinary Profit

Personal accident insurance(Millions of policies)(Billions of yen)

Number of policies in force

Other

+8.0%

1.44

2

1.33

(Billions of yen)
50

1.4

1.22
+7.5%

40
0.3

30

33.6

0.3

36.7
3.6

39.4
3.7

3.5

1.2

0.4
1
0.8

35.2
32.6

20

1.5
1.5

1
+9.3%

0.6

29.7

0.4
10

0.6

0.7

0.5

0.2
0

0
FY09.1H

FY10.1H

FY11.1H

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.

0
FY09.1H

FY10.1H

FY11.1H

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

91.9

Net loss ratio

Net expense ratio

(%)

100

Combined Ratio(Net Expense Ratio + Net Loss Ratio)+1.9pt

95.2

94.2

96.1

83.3

60

69.7
65.8

+2.7pt

85.6
79.2

80

69.5

85.7

83.0

+1.1pt70.6

63.9+1.9pt

60

58.2

60.0
57.2

40

20

(%)
100

89.1

80

Net expense ratio

60.1

54.0

40

26.1

25.5

20

+0.8pt

25.2

24.7

25.5

FY09.1H

FY10.1H

FY11.1H

0

26.1

25.5

FY09

FY10

+0.8pt

25.2

24.7

25.5

FY09.1H

FY10.1H

FY11.1H

0

FY09

FY10

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>(20.5pt)

1,200

1,010.3

New solvency margin ratio effective as of the end of FY11

981.4

960.9

March 31, 2011 : 631.0%
September 30, 2011 : 617.0%
Variation factor from the previous standard

800◆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, andSeptember 30, 2011.

400

010.9.30

11.3.3111.9.3020

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

15.4

Ordinary profit(1.9%)

15.1(Billions of yen)

FY10.1H

15.4

15.1

(0.2)

(1.9%)

Gross operating profit

8.3

9.3

+1.0

+12.6%

6.3

7.8

+1.5

+24.2%Net fees and commissions(0.07)

0.08

+0.15

－

Net other operating income

2.0

1.4

(0.6)

(30.8%)

General andadministrative expenses

6.3

6.8

+0.5

+8.0%

Ordinary profit

1.6

2.2

+0.5

+30.0%Net income

0.8

1.2

+0.4

+45.5%Net operating profit

1.8

2.3

+0.5

+28.7%

Change from 11.3.31

2.2+30.0%

FY10.1H

FY11.1H(Billions of yen)Ordinary revenues decreased but ordinary profit
increased year on year.
Gross operating profit increased ¥1.0 billion year on year due
mainly to an increase in net interest income.
- Net interest income increased ¥1.5 billion owing primarily to
an increase in interest income on loans led by the growing
balance of mortgage loans and a decrease in interest
expenses on yen deposits.
- Net other operating income decreased ¥0.6 billion reflecting
lower gains on bond dealing transactions.
Net operating profit increased, owing to an increase in grossoperating profit.
Customer assets decreased ¥11.8 billion from March 31, 2011reflecting a decreasing balance of investment trust under the
bear market and the negative impact of yen appreciation on
the foreign exchange conversion of foreign currency deposits.

ChangeOrdinary revenues

Net interest income

1.6

FY11.1H(Billions of yen)

10.9.30

11.3.3111.9.30

Securities

958.3

940.1

894.8

(45.2)(4.8%)

Loans

636.4

722.4

776.1

+53.7

+7.4%

Deposits

1,584.8

1,649.1

1,645.2(3.8)(0.2%)

Customer assets

1,683.6

1,755.5

1,743.7(11.8)(0.7%)

Total net assets

58.3

59.9

59.5

(0.4)

(0.7%)

1.1

0.4

(0.4)

(0.8)

－

1,700.7

1,761.8

1,769.2

+7.4

+0.4%

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);
percentage change figures are rounded.

21

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)
10.9.30

11.3.3111.9.30

1,683.6

1,755.5

1,743.7(11.8)(0.7%)

Deposits

1,584.8

1,649.1

1,645.2(3.8)(0.2%)

Yen

1,241.7

1,289.8

1,284.3(5.5)(0.4%)

343.0

359.2

360.8

+1.6

+0.5%

98.8

106.4

98.5

(7.9)

(7.5%)

636.4

722.4

776.1

+53.7

+7.4%

Mortgage loans

581.3

656.0

697.8

+41.8

+6.4%

Others

55.0

66.4

78.2

+11.8

+17.9%+22+2.6%(Billions of yen)

Customer assets

Foreign currency
Investment trusts
Loans outstanding

Number of accounts (thousands)
Capital adequacy ratio (*2)(domestic criteria)

828

859

11.76%

10.84%*1881

10.52%

Change(0.32pt)*1 Loans in others include corporate loans of ¥70.4 billion.

 Yen deposits decreased due to a shift toforeign currency deposit driven by yen
appreciation and a difficulty in acquiring
new yen deposit in the low interest rate
conditions.
 Foreign currency deposit slightly
increased reflecting growing demand forsaving foreign currency under the market
fluctuation while the sharp hike in the yen
might have the negative impact on theforeign exchange conversion.
(Approx. ¥3.4 billion)
 Investment trusts decreased reflecting adecline in reference price though sales
volume rose steadily.
 Loan balance steadily increased due toincreases in mortgage loans andcorporate lending centering on syndicatedloans.

*2 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

Overview of Performance:
Sony Bank (Non-consolidated) (2)<Reference><Reference> On Managerial Accounting Basis(Billions of yen)
Gross operating profit
Net interest income①*1

FY09.1H

FY10.1H

FY11.1H

7.7

8.2

9.3

+1.0

+12.8%

6.6

7.2

8.7

+1.5

+21.5%Net Operating Profit (Core Profit),
Operating Expenses and Other Expenses& Gross Operating Profit (Core Profit)

ChangeGross operating profit (core profit)

Net operating profit (core profit)

Operating expenses and other expenses

Net fees andcommissions *2 ②

0.6

Net other operating
income *3

0.4

0.5

(0.0)

(0.5)

－

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

7.2

7.7

9.3

+1.6

+21.3%

Operating expenses andother expenses ③

5.6

6.4

6.9

+0.5

+8.0%

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

1.6

1.2

2.4

+1.1

+88.7%

0.5

0.6

+0.0

+19.2%

10●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.

(Billions of yen)

9.3
+21.3%

8

7.7
7.2
6.4

6

+8.0%

6.9

5.6

4

2.4
2

1.6

+88.7%

1.2●Core profit
0Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.
FY09.1H
FY10.1H
FY11.1H
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 financing

Yield on investment

(%)

2.00

1.50

1.00

1.44

1.42

0.87

0.88

0.57

0.53

0.50

1.40

1.41

1.41

+0.03pt

1.01

0.94

0.98

0.45

0.43

0.40

FY10.4Q

FY11.1Q

FY11.2Q

0.00
FY10.2Q

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)
and Number of Accounts
Yen deposits
Foreign currency deposits
Number of accounts (thousands)(Billions of yen)

828

Investment trusts

Mortgage loans

Others*Including corporate loans of ¥70.4 billion.

(Billions of yen)
+22

859

881

+53.7

800

722.4

2,000

1,683.6

Loans

1,743.7

1,755.5

78.2*

636.4

98.5

600

(11.8)
1,500

776.1

360.8

1,000

Deposits
total:

400

697.8

1,645.2
1,284.3
500

200

0

0

10.9.30

11.3.3111.9.30

10.9.30

11.3.3111.9.30

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

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
（％）

(Billions of yen)

20

1,200

(45.2)
1,000

958.3

940.1

894.8

15

(0.32pt)
800
10

11.76
10.84

10.52

600

5

400

200

0
10.9.30010.9.30

11.3.3111.9.3111.3.3111.9.30* 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 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
FY10

ChangeActualFY11
Forecast

1,002.2

1,022.0+ 2.0%

Life insurance business

900.3

909.3

+ 1.0%

Non-life insurance business

74.1

80.4

+ 8.4%

Consolidated ordinary revenues

FY10 actual vs.
FY11 forecast

29.5

32.8

+ 11.0%

76.8

59.0

(23.2%)

Life insurance business

72.1

53.0

(26.6%)

Non-life insurance business

2.1

2.6

+ 21.2%

Banking business

2.4

4.1

+ 70.3%

41.7

29.0

(30.5％)

Banking business
Consolidated ordinary profit

Consolidated net income

Consolidated Ordinary Revenues
Banking business
Non-life insurance businessLife insurance business(Billions of yen)

1,000

1,002.2

1,022.0500

0SFH’s forecast of consolidated financial results for the fiscal year ending March 31, 2012, is unchanged from the forecast announced on May 20, 2011.

FY10 (Actual)■Life insurance business
Ordinary revenues for FY11 are expected to increase 1.0% year on year, to ¥909.3 billion. We anticipate that income frominsurance premiums will increase in line with steady growth of the policy amount in force. We expect ordinary profit to decrease
26.6% year on year, to ¥53.0 billion due to lower gains on sale of securities. During FY10, the business generated more net
capital gains through sale of securities than this fiscal year, reflecting the process of shifting bond holdings to ultralong-termbonds to reduce interest rate risk. (Operating results for the first half of this fiscal year exceeded our forecast announced on May
20, 2011, as insurance claims and other payments relating to the Great East Japan Earthquake were lower than our estimates asof the end of the previous fiscal year. However, our financial forecast for this fiscal year remains unchanged from the previous
announcement, of May 20, 2011, due mainly to uncertainty about the financial market environment for the second half of thisfiscal year.)

FY11 (Forecast)

Consolidated Ordinary Profit(Billions of yen)
100

Banking business
Non-life insurance businessLife insurance business

76.8
59.0

■Non-life insurance business
Ordinary revenues for FY11 are expected to rise 8.4% year on year, to ¥80.4 billion, due to an increase in net premiums written,
mainly for mainstay automobile insurance. Ordinary profit is expected to increase 21.2% year on year, to ¥2.6 billion, due
primarily to a rise in ordinary revenues and a reversal of catastrophe reserve which offset the negative impact of the rising loss
ratio, though the loss ratio for FY11 is expected to be higher than FY10.

50■Banking Business
Ordinary revenues for FY11, are expected to increase 11.0% year on year, to ¥32.8 billion, owing to an increase in net interest
income, bolstered mainly by a growing balance of loans, especially mortgages. Ordinary profit is expected to grow 70.3%, to ¥4.1
billion, from the previous fiscal year, as we anticipate a steady increase in gross operating profit, driven by business expansion.

0
FY10 (Actual)

FY11 (Forecast)(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)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 (4 types, 5 products)
Sales Channels: Lifeplanner sales employees and partner Banks (7*) As of November 14, 2011
Financial Highlights for FY11.1H:
Number of new policies: 494, New policy amount: ¥3.7 billion
Number of policies in force: 1,694 policies, Policy amount in force: ¥16.6 billion

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 24% of the balance ofmortgage loans as of September 30, 2011
Sony Life accounts for 27% of the amount of
new mortgage loans for FY11.1H*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 FY11.1H* 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 FY11.2Q onward>
2011-7-01

Sony Bank acquired a 57% equity interest in SmartLink Network, Inc., an industry-leading provider of credit card settlement
services

2011-8-03

Sony Assurance began offering a free application, “Drivers’ Navigation” to smart phone users

2011-8-08

Sony Bank began offering new mortgage loan, named "Variable Select Mortgage Loan"

2011-8-22

Sony Bank opened representative office in Sydney

2011-8-31

Sony Assurance declared conformity with the ISO 10002 International Standard for Complaints Management Systems

2011-9-05

AEGON Sony Life Insurance began offering "Catch Point II," a new individual variable annuity product (GMAB Type 2011),
through SMBC

2011-9-05

AEGON Sony Life Insurance began offering "Winning Road II," an individual variable annuity product (GLWB Type 2011),
through Juroku Bank

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

2011-10-05

Sony Assurance opened its official page in “Facebook”(*) and its PR official account in “Twitter.”

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(*) Facebook is a refistered trademark of Facebook, Inc.

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)

②Real
Net Assets③Solvency
Margin11.3.3111.9.30

11.3.3111.9.30

11.3.3111.9.30

Total shareholders’ equity

209.8

216.4

209.8

216.4

200.7

216.4

Net unrealized gains on other securities, net of taxes

7.0
－
(1.4)
－

27.4
－
(1.4)
－

7.0
－
(1.4)
16.7

27.4
－
(1.4)
20.6

－
20.8
－
16.7

－
49.5
－
20.6

Contingency reserve

－

－

51.5

53.3

51.5

53.3

General reserve for possible loan losses

－

－

－

－

0.0

0.0

－

－

1.9

1.9

1.0

1.0

－
－
－
－
－
－
215.3

－
－
－
－
－
－
242.4

334.2
1.1
－
－
(22.1)
8.0
606.9

342.1
0.9
－
－
148.8
19.6
829.9

334.2
1.1
0.6
63.3
－
－
690.3

342.1
0.9
0.6
72.2
－
－
756.9

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

Net unrealized gains on real estate
Excess amount of policy reserves based on Zillmer method
Unallotted portion of reserve for policyholders' dividends
Future profits
Deferred tax assets
Unrealized gains (losses) on held-to-maturity bonds
Deferred tax liabilities for available-for-sale securities
Total

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

②Before tax

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 ¥681.1 billion as of September 30, 2011.
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 September 30, 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, Spain)

Sovereign bond

OthersSony Life

―

―

Sony
Assurance――

Sony Bank―¥1.6 Billion(Corporate bonds of Spanish company)(Note) As of September 30, 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