Consolidated Financial Summary
for the Year Ended March 31, 2012
May 18, 2012
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Katsumi Ihara, President and Representative Director
Representative:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
Inquiries:(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the year ended March 31, 2012
(1) Operating results
Ordinary Revenues
For the year ended
March 31, 2012
For the year ended
March 31, 2011
Note: Comprehensive Income:Net Income% change

Millions of yen% change

Millions of yen% change

1,078,070

7.6

74,625(2.9)

32,812(21.3)

1,002,201

2.4

76,860(8.9)

41,716(13.3)

88.9％(55.0)％For the year ended March 31, 2012: ¥60,376 million:
For the year ended March 31, 2011: ¥31,963 million:

Net Income per
Share

Net Income per
Share(Fully Diluted)

Yen

For the year ended
March 31, 2012
For the year ended
March 31, 2011

Ordinary Profit

Millions of yen

Net Income on
Shareholders'EquityYen

Ordinary Profit on
Total Assets

Ordinary Profit on
Ordinary Revenues

%

%

%

75.43

—

10.2

1.1

6.9

95.90

—

14.8

1.2

7.7

Notes: 1. Equity in earnings (losses) of affiliates:

For the year ended March 31, 2012: ¥(1,179) million
For the year ended March 31, 2011: ¥ (944) million
2. Although a stock split was conducted during the year ended March 31, 2012, net income per share for the year ended March 31, 2011, wascalculated 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

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of March 31, 2012

7,241,414

347,800

4.8

796.64As of March 31, 2011

6,597,140

294,8774.5

677.88Notes: 1. Shareholders'equity:

As of March 31, 2012: ¥346,540 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.
3. Although a stock split was conducted during the year ended March 31, 2012, net assets 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) Cash flows

For the year ended
March 31, 2012
For the year ended
March 31, 2011

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Millions of yen

Millions of yen

Millions of yen

Cash and Cash
Equivalents at end of
fiscal year
Millions of yen

524,264(512,198)

1,782

175,651

527,582(559,771)(6,560)161,803

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2011
For the year ended
March 31, 2012
For the year ending
March 31, 2013
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

AnnualDividend
AmountMillions of yen

Dividend
Payout
Ratio%

Dividend on
Net Assets
%

—

0.00

—

20.00

20.00

8,700

20.9

3.1

—

0.00

—

20.00

20.00

8,700

26.5

2.7

—

—

—

—

—

—

Notes: 1. Although a stock split was conducted during the year ended March 31, 2012, 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.
2. Prospective dividends for the year ending March 31, 2013, have not yet been determined.

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

Ordinary Profit

Net Income per
Share

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,115,000

3.4

67,000(10.2)

37,000

12.8

Yen

85.06

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

4. Notes(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying changes inscope of consolidation): None
(2) 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
(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of March 31, 2012:
As of March 31, 2011:(b) Number of treasury shares
As of March 31, 2012:
As of March 31, 2011:(c) Weighted-average number of shares
For the year ended March 31, 2012:
For the year ended March 31, 2011:

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

Audit of Quarterly Financial Statements
This earnings report is exempt from audit procedure based upon the Financial Instruments and Exchange Act. Audit procedures areunderway as of the date of this report.

Content of Supplemental Materials
I.

Qualitative Information and Financial Statements
1.

Qualitative Information on Consolidated Operating Performance・・・・・・・・・・・・・・ 3

2.

Qualitative Information on Consolidated Financial Position・・・・・・・・・・・・・・・・ 5

3.

Basic Policy on Returns to Shareholders and Dividends for theYear Ended March 31, 2012, and the Year Ended March 31, 2013・・・・・・・・・・・・・・ 6

II.
III.

IV.

Status of the Corporate GroupManagement Policies

61.

Company’s Basic Management Policies・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8

2.

Key Management Benchmarks・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8

3.

Medium- to Long-Term Management Strategies・・・・・・・・・・・・・・・・・・・・・・ 9

4.

Tasks Ahead for the Company・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 112.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・13(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・16
3.

Consolidated Statements of Changes in Net Assets・・・・・・・・・・・・・・・・・・・・17

4.

Consolidated Statements of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・19

5.

Additional Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・22

6.

Notes to the Consolidated Financial Statements・・・・・・・・・・・・・・・・・・・・・・22
1) Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・・22
2) Financial Instruments・・・・・・・・・・・・・・・・・・・・・・・・・・・・28
3) Investments in Securities･・・・・・・・・・・・・・・・・・・・・・・・・・・・31
4) Investments in Monetary Trusts・・・・・・・・・・・・・・・・・・・・・・・・・・・33
5) Derivative financial instruments・・・・・・・・・・・・・・・・・・・・・・・・・・・34
6) Per Share Information・・・・・・・・・・・・・・・・・・・・・・・・・・・ 36
7) Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 36

V.

Attachment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 37(Attachment)
Consolidated Financial Results for the Year Ended March 31, 2012 and Sony Life’s Priliminary Market
Consistent Embedded Value* We will upload the press releases on Sony Life’s Market Consistent Embedded Value as ofMarch 31, 2012, scheduled as below.
Preliminary summary:

Scheduled to be uploaded on May 18, 2012 at 15:00 (Tokyo)Detailed report:

Scheduled to be uploaded on May 25, 2012 at 15:00 (Tokyo)

Please see futher details at our website: http://www.sonyfh.co.jp/web/index_en.html

1* The Conference Call for explaining the SFH Group financial results will be held at 19:00 (Tokyo), May
18, 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 May 18, 2012, and its Q&A summary lateron Presentation Materials page on our website.
* On May 18, 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 forthe year ended March 31, 2012. SFH prepared an English-language summary of those Japanese
announcements made by above subsidiaries, solely for convenience of non-Japanese readers.
Please see further details at our website: http://www.sonyfh.co.jp/web/en/financial_info_e/results.html

2

I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
1) Analysis of Operating Performance
During the year ended March 31, 2012 (April 1, 2011 through March 31, 2012), the Japanese economy, although depressedat one point as a consequence of the Great East Japan Earthquake, has rallied overall, staging a gradual recovery withresurgent business activity. However, this recovery is expected to remain sluggish for the foreseeable future, owing mainly tothe downturn in the world economy caused by credit uncertainty in Europe and yen appreciation.
Against this backdrop, the SFH Group provided high-quality products and services with the aim of becoming one of themost highly trusted financial services groups. The Group also implemented various measures to satisfy increasingly diverse
customer needs.
As for its operating results, consolidated ordinary revenues grew 7.6% compared with the previous fiscal year, to¥1,078.0 billion, owing to increases in ordinary revenues from the life insurance business, the non-life insurance business, andthe banking business. Consolidated ordinary profit decreased 2.9% year on year, to ¥74.6 billion. By business segment,
ordinary profit from the life insurance decreased, whereas ordinary profit from the non-life insurance business and thebanking business increased year on year.
Extraordinary losses were recorded during the year ended March 31, 2012 due mainly to the provision of a reserve forprice fluctuations of ¥8.5 billion in the life insurance business, compared with a ¥7.1 billion provision during the previous
fiscal year.
After accounting for extraordinary gains (losses), provision for reserve for policyholders’ dividends and income taxes, net
income for the year ended March 31, 2012 was down 21.3% year on year, to ¥32.8 billion due to an increase in deferredincome taxes of ¥7.1 billion stemming from a reversal of deferred tax assets associated with the reduction in the corporate tax
rate.
Segment Information by Business< Life insurance business >In the life insurance business, ordinary revenues increased 7.5% year on year, to ¥967.5 billion, due mainly to higher income
from insurance premiums associated with steady increases in the policy amount in force, as well as an increase in investment
income accompanied with market recovery towards the end of the fiscal year ended March 31,2012. Ordinary profit decreased
5.5% year on year, to ¥68.1 billion, due to lower gains on sale of securities, reflecting the process of shifting bond holdings toultralong-term bonds 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 business >In the non-life insurance business, ordinary revenues increased 8.0% compared with the previous fiscal year, to ¥80.0billion,
due to an increase in net premiums written, as the number of insurance policies in force grew primarily for our mainstay
automobile insurance. Ordinary profit increased 33.3% year on year, to ¥2.8 billion, due mainly to the increase in ordinary
revenues and a reversal of catastrophe reserve, although a rise in net losses paid for automobile insurance resulted in thehigher loss ratio.

< Banking business >In the banking business, ordinary revenues increased 10.1% compared with the previous fiscal year, to ¥32.5 billion, due toan increase in net fees and commissions resulting from Sony Bank’s acquisition of SmartLink Network, Inc. on July 1, 2011as its consolidated subsidiary. Ordinary profit rose 43.9% year on year, to ¥3.4 billion due to a rise in gross operating profit
resulting from an increase in net interest income. The net interest income increased due mainly to higher interest income onloans led by the growing balance of mortgage loans and a decrease in interest expenses on yen deposits.

3

Ordinary Revenues(Millions of yen)Life insurance business
Non-life insurance
business
Banking business
SubtotalIntersegment adjustments
Consolidated

For the year ended
March 31, 2011
900,359

For the year ended
March 31, 2012
967,582

74,16680,096

8.0

29,5591,004,085(1,883)
1,002,201

32,553
1,080,232(2,162)
1,078,070

10.1
7.6
7.6

For the year ended
March 31, 2011
72,172For the year ended
March 31, 2012
68,187

2,144

2,859

33.3

2,407
76,724135
76,8603,463
74,509116
74,62543.9(2.9)(14.0)(2.9)

Change (%)
7.5

Ordinary Profit(Millions of yen)Life insurance business
Non-life insurance
business
Banking business
SubtotalIntersegment adjustments*
Consolidated

Change (%)(5.5)*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

2) Consolidated Financial Forecast for the Year Ending March 31, 2013
SFH’s consolidated financial forecast for the fiscal year ending March 31, 2013 (April 1, 2012, through March 31, 2013), as
follows, is unchanged from the forecast announced on May 10, 2012.
(Billions of yen)
(Reference)(Forecast)
For the year ended March 31, 2012
For the year ending March 31, 2013
Ordinary revenues
1,078.0
1,115.0
Ordinary profit

74.6

67.0

Net income

32.8

37.0

Business segment forecasts for the fiscal year ending March 31, 2013 (April 1, 2012 through March 31, 2013) are as follows.
Forecast figures from each business reflect corporate and eliminations.
<Life insurance business>
Ordinary revenues for the fiscal year ending March 31, 2013, are expected to increase 2.8% year on year, to ¥994.5 billion.
In the current fiscal year, we do not expect to record the above-mentioned increase in investment income that we posted at
the previous year-end due to the market, although we do anticipate that income from insurance premiums will increase inline with steady growth of the policy amount in force. We expect ordinary profit to decrease 9.8% year on year, to ¥61.5
billion. During the fiscal year ended March 31, 2012, Sony Life recorded a profit due to lower insurance claims and otherpayments relating to the Great East Japan Earthquake than we had estimated at the end of March 2011, as well as gains onsale of securities, reflecting the process of shifting bond holdings to ultralong-term bonds to reduce interest rate risk.
However, we do not anticipate such gains for the year ending March 31, 2013.

4

(Reference)
For the year ended March 31, 2012

(Billions of yen)
(Forecast)
For the year ending March 31, 2013

Ordinary revenues

967.5

994.5

Ordinary profit

68.1

61.5

<Non-life insurance business>
Ordinary revenues for the year ending March 31, 2013 are expected to rise 8.4% year on year, to ¥86.8 billion, due to anincrease in net premiums written, mainly for mainstay automobile insurance. Ordinary profit is expected to decrease 9.1%
year on year, to ¥2.6 billion, mainly because we expect the loss ratio to stay at a high level and the expense ratio to slightly
increase resulting from an increase in system-related expenses.
(Billions of yen)
(Reference)(Forecast)
For the year ended March 31, 2012
For the year ending March 31, 2013
Ordinary revenues
80.0
86.8
Ordinary profit

2.8

2.6

<Banking business>
Ordinary revenues for the year ending March 31, 2013, are expected to increase 6.0% year on year, to ¥34.5 billion, owing
mainly to a growing balance of loans, especially mortgages. Ordinary profit is expected to increase 3.9% year on year, to ¥3.6
billion, as we anticipate a steady increase in gross operating profit, driven by business expansion.
(Billions of yen)
(Reference)(Forecast)
For the year ended March 31, 2012
For the year ending March 31, 2013
Ordinary revenues
32.5
34.5
Ordinary profit

3.4

3.6

2. Qualitative Information on Consolidated Financial Position
1) Assets, Liabilities and Net Assets
As of March 31, 2012, total assets amounted to ¥7,241.4 billion, up 9.8% from March 31, 2011. Among major components ofassets, securities, mostly Japanese government bonds, amounted to ¥5,531.5 billion, up 9.9% from March 31, 2011. Loanscame to ¥975.0 billion, up 13.7%, and monetary trusts amounted to ¥303.0 billion, up 4.2%.
Total liabilities were ¥6,893.6 billion, up 9.4% from March 31, 2011. Major components of liabilities included policy
reserves and others of ¥4,963.0 billion, up 10.5%, and deposits totaled ¥1,760.8 billion, up 6.9%. In October 2011, SFH issued¥10.0 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 ¥347.8 billion, up 17.9% from March 31, 2011. This included net unrealized gains on other securities,
net of taxes, which increased ¥28.4 billion, to ¥36.9 billion.
2) Cash FlowsNet cash provided by operating activities for the year ended March 31, 2012, was ¥524.2 billion, down ¥3.3 billion fromthe previous fiscal year. The major reasons were a decrease in inflows due to a decrease in customer yen deposits and a5decrease in call loans in the banking business, which offset an increase in inflows due to higher income from insurance
premiums owing to steady increases in the policy amount in force in the life insurance business.
Net cash used in investing activities was ¥512.1 billion, down ¥47.5 billion from the previous fiscal year. The primaryreason was a decrease in outflows owing to a decline in acquisition of securities resulting from a growing balance of loans,especially mortgages in the banking business.
Net cash provided by financing activities came to ¥1.7 billion, compared with net cash used in financing activities of¥6.5 billion during the previous fiscal year. This increase in cash inflow was due to the bond issuance despite an increase individend payments.
As a result of the above factors, cash and cash equivalents at March 31, 2012, were ¥175.6 billion, up ¥13.8 billion fromMarch 31, 2011.

3. Basic Policy on Returns to Shareholders and Dividends for the Year Ended March 31, 2012, and theYear Ended March 31, 2013
SFH places priority on returning profits to shareholders and raising return on equity. Our basic policy is to pay a stabledividend to shareholders while ensuring the high financial soundness needed to gain and maintain the confidence of thecustomers of the group companies as well as the internal reserves needed for future business development.
In the light of our overall operating performance, we propose to pay an annual cash dividend of ¥20 per share (total of ¥8.7
billion) for the year ended March 31, 2012, unchanged from the previous period.
We have not decided the level of the annual cash dividend per share for the year ending March 31, 2013. We will consider
this level, taking future operating performance into account.
We will continue to make dividend payments once a year, following the resolution of the general meeting of shareholders,with the dividend record date at the end of each fiscal year.
Please refer to the attached presentation materials for non-consolidated operating results of SFH’s principal subsidiaries,
Sony Life, Sony Assurance and Sony Bank for the year ended March 31, 2012.

II. Status of the Corporate GroupOn April 1, 2004, SFH was established as a financial holding company (an insurance holding company and a bankholding company) through a corporate separation from Sony Corporation. On October 11, 2007, SFH listed its common
stock on the First Section of the Tokyo Stock Exchange, by publicly offering its shares to Japanese and overseas
investors, resulting in Sony Corporation’s ownerships to account for 60% of the total outstanding shares of SFH.
As of March 31, 2012, SFH Group included as direct subsidiaries Sony Life, Sony Assurance and Sony Bank and as
indirect subsidiaries Sony Life Insurance (Philippines) Corporation, a subsidiary of Sony Life, and Sony Bank
Securities Inc. (Sony Bank Securities) and SmartLink Network, Inc., subsidiaries of Sony Bank. It also includes AEGONSony Life Insurance Co., Ltd. (AEGON Sony Life Insurance) and SA Reinsurance Ltd., as affiliated companies
accounted for under the equity method.
 Sony Financial Holdings Inc. (Management control of its subsidiaries and all duties incidental to that role)[Directly Held, indirectly held subsidiaries and affiliated companies accounted for under the equity method]<Life insurance business> Sony Life Insurance Co., Ltd. (Wholly-owned by SFH)
 Sony Life Insurance (Philippines) Corporation (Wholly-owned by Sony Life) AEGON Sony Life Insurance Co., Ltd. (50%-owned by Sony Life)
 SA Reinsurance Ltd. (50%-owned by Sony Life)

6

<Non-life insurance business> Sony Assurance Inc. (Wholly-owned by SFH)
<Banking business> Sony Bank Inc. (Wholly-owned by SFH)
 Sony Bank Securities Inc. (Wholly-owned by Sony Bank) SmartLink Network, Inc. (57% -owned by Sony Bank)[Organizational chart] (As of March 31, 2012)

Sony
Corporation

Sony Financial
Holdings Inc.

<Life insurance business>
Sony Life InsuranceCo., Ltd.

<Life insurance
business><Life insurance
business>Sony Life Insurance

AEGON Sony Life

(Philippines)

Insurance Co., Ltd.

<Non-life insurance
business>Sony Assurance Inc.

<Life insurance
business>
SA Reinsurance
Ltd.

<Banking business>
Sony Bank Inc.

<Banking
business>
SmartLink
Network, Inc.

<Banking
business>Sony Bank
Securities Inc.

Corporation

Consolidated subsidiaries

Trade name and trademark licenseManagement control fee

Affiliated companies
accounted for under theequity method

Sales and referrals of
the other’s products

Shareholding

7III. Management Policies
1. Company’s Basic Management Policies
The SFH Group positions its corporate vision and philosophy as the basic policy for setting management strategy and
expediting management decision-making. The Group’s corporate vision and philosophies are described below.
a. Corporate Vision
The SFH Group seeks to become the most highly trusted financial services group by customers. To this end, the SFH
Group will combine many different financial functions (savings, investment, borrowing, and protection) to provide
high-value-added financial products and high-quality services that meet every customer’s financial needs.
b. Corporate Principles
Put the Customer FirstWe will provide financial products and services that satisfy customers by embracing their individual views, to ensurethat we help them lead prosperous lives with financial security.
Give Back to Society
We believe that a special commitment to the public good is demanded of a financial services enterprise. Conscious ofthis, we will realize our vision by upholding the highest ethics and a strong sense of purpose, and thereby give backto society. In addition, we will fulfill our responsibilities as a good corporate citizen and member of society.
Strive for Originality
We will constantly strive to come up with fresh ideas from basic principles as we pursue creativity and innovation,
instead of merely following custom and convention.
Foster an Open Corporate Culture
We believe that every employee’s contribution is important to develop our ideal of a financial services enterprise. We
will thus foster an open corporate culture where employees can freely express their individuality and demonstrate
their abilities to the fullest.

2. Key Management Benchmarks
SFH closely follows the following management benchmarks aiming at raising its corporate value.
■ Consolidated ordinary revenues■ Consolidated ordinary profit■ Consolidated net income■ Consolidated adjusted ROE
Consolidated adjusted ROE is calculated as follows.
Consolidated adjusted ROE = consolidated adjusted profit divided by consolidated adjusted capital
Consolidated adjusted profit is calculated as the sum of the following:
1) Sony Life:The amount of increase in Embedded Value (EV* : adjusted net worth plus value ofexisting business) during the fiscal year plus dividends paid
2) Sony Assurance: The net income plus provision for catastrophe reserve and its provision for reserve for pricefluctuations, in each case after taxes
3) Sony Bank:
Net income
Consolidated adjusted capital is calculated as the sum of the following:
1) Sony Life:
EV* as of the beginning of the fiscal year less dividends paid plus EV* as of the end of
the fiscal year, divided by two
2) Sony Assurance: The average amount of net assets plus the sum of catastrophe reserve and its reserve forprice fluctuations, in each case after taxes
3) Sony Bank:
The average amount of net assets

8

*Sony Life discloses Market Consistent Embedded Value (“MCEV”). Sony Life’s MCEV is calculated in compliancewith the European Insurance Chief Financial Officer (CFO) Forum Market Consistent Embedded Value Principles©
(“MCEV Principles”), the international standard in disclosing MCEV published by the CFO Forum comprised of CFOs
from major insurance companies in Europe.
Consolidated adjusted profit and consolidated adjusted capital take into consideration dividends from the Group subsidiaries and otherspecial factors.

3. Medium- to Long-Term Management Strategies
The SFH Group aims to maximize the corporate value of the Group over the medium to long term by implementing themanagement strategies outlined below.
(a) Sustainable and Stable Growth of Group Companies
Sony Life:
Sony Life provides detailed tailored consulting and follow-up services through life insurance
professionals—Lifeplanner sales employees and Partners (independent agencies)—who havebroad-ranging expertise and extensive experience in such areas as economics, finance andtaxation. Sony Life strives to strengthen its capabilities and hone its competitive edge in theindividual life insurance market by providing value in a way that only Sony Life can.
Sony Assurance: Capitalizing on the strengths of its position as a direct insurance provider that communicateswith each of its customers directly via the Internet and the telephone, Sony Assurance precisely
understands customer opinions and needs, and provides products and services from a customer
viewpoint. Sony Assurance aims to increase its income from insurance premiums by offering
reasonably priced insurance premiums realized by risk-segmented products and operational
efficiency.
Sony Bank:
Sony Bank is an Internet bank focused on the needs of individual customers. By maximizing
information technologies, the bank works to provide fair and highly convenient financial
products and services. By ensuring its trustworthiness in such ways, the bank is working to
expand its operations further.
(b) Fostering Synergy among Group Companies
In addition to the growth of each company within the Group, we seek to enhance synergies among the companiesof the SFH Group. Such efforts include the joint offering of products and services, the sharing of distribution
channels and infrastructure and other forms of collaboration. By increasing intra-group synergies, SFH aims tooffer customers attractive and high-value-added products and services that are unmatched by conventional
financial institutions.
(c) Expanding into New Business Fields, Outside the Existing Framework
Through the growth of Group companies and increased synergies within the Group, we aim to move beyond theexisting framework of the SFH Group. We are examining active advancements into new business fields that willraise our corporate value even further.

4. Tasks Ahead for the Company
We expect Japanese economic recovery to remain sluggish during the year ending March 31, 2013, due mainly tothe likely aftermath of the European debt crisis and higher crude oil prices, which we will monitor carefully.
However, we recognize signs of recovery supported by stable personal consumption and higher demand after theGreat East Japan Earthquake. Regardless, the insurance and banking industries must serve their role in providing
proper and stable financial services, while consistently executing growth strategies.

9

The SFH Group seeks to become the financial services group that is most highly trusted by customers. To this end, theGroup has redoubled its internal control efforts focused on compliance, risk management, eradicating anti-social
influences and ensuring the protection of personal information. The SFH Group has also explored its ideal ofproviding financial services for individual customers from various perspectives. We are working to realize our vision
and achieve ongoing increases in corporate value by executing the above management strategies. At the same time, we
identify our social role and mission as a financial institution as contributing to the realization of a sustainable society.
We will fulfill our responsibilities to our stakeholders accordingly.

10

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

As of March 31, 2012

Cash and due from banks¥90,455¥118,877

Call loans and bills bought

78,50066,300

Monetary trusts

290,736

303,058

5,031,024

5,531,585

Loans

857,436

975,032

Tangible fixed assets

77,17175,169Land

31,46931,469Buildings

44,08841,906

AssetsSecurities

Leased assets

232

208

1,382

1,585

26,246

36,636

Software25,19035,661

Goodwill

1,002

839

53

135

Due from reinsurers

108

79

Foreign exchanges

8,432

8,936

Other assets

88,32092,416

Deferred tax assets

49,057

34,171

Customers'liabilities for acceptances and guarantees

1,000

1,000

Other tangible fixed assets
Intangible fixed assets

Other intangible fixed assets

Reserve for possible loan losses
Total Assets

11(1,349)(1,848)¥6,597,140¥7,241,414

(Millions of yen)
As of March 31, 2011

As of March 31, 2012

¥4,489,809¥4,963,025

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

49,164

48,233

4,435,804

4,910,669

4,839

4,122

1,502

1,664

799

647

1,647,657

1,760,853

Call money and bills sold

10,00010,000Borrowed money

2,000

2,000

Foreign exchanges

17

35

Bonds payable－

10,000

Other liabilities

110,119

93,563

Reserve for employees'bonuses

2,707

2,944

Reserve for employees'retirement benefits

18,69821,547

Reserve for directors'retirement benefits

441

354

16,81725,386

16,812

25,380

Deposits

Special reserves
Reserve for price fluctuations
Reserve for financial products transaction liabilities

4

6

693

589

1,000

1,000

6,302,263

6,893,613

Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

74,56598,677

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

289,742

313,854

Net unrealized gains on other securities, net of taxes

Total shareholders'equity

8,525

36,949Net deferred losses on hedging instruments, net of taxes(1,558)(2,414)

Land revaluation, net of taxes(1,499)(1,395)

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

12

(331)

(453)

5,135

32,685－

1,260

294,877

347,800¥6,597,140¥7,241,414

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the year ended
March 31, 2011
Ordinary Revenues
Ordinary Revenues from the Life Insurance Business
Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions

For the year ended
March 31, 2012

¥1,002,201¥1,078,070

898,513965,555

769,711815,382

767,640

813,930

2,071

1,452

119,287

133,670

Interest income and dividends

87,272

97,649

Income from monetary trusts, net

6,983

5,278

Gains on sale of securities

Investment income

25,030

7,592

Gains on redemption of securities

0－

Other investment income

112

Gains on separate accounts, net—

23,137

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

9,514

16,501

74,16480,09473,375

79,172

73,343

79,141

31

31

767

873

784

874

3

23

Gains on redemption of securities

10

6

Transfer to interest and dividends on deposits of premiums

(31)

(31)

22

48

29,52332,420

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

23,667

24,871

Interest income on loans

12,443

13,270Interest income and dividends on securities

11,113

11,540Interest income on call loans and bills bought

25

13Interest income on deposits with banks

52

45

Other interest income

32

1

Fees and commissions

1,946

4,752

Other operating income

3,869

2,740

Gains on foreign exchange transactions, net

2,677

1,764

Others

1,192

976

40

56

Other ordinary income(Continued)

13

(Millions of yen)
For the year ended
March 31, 2011

For the year ended
March 31, 2012

Ordinary Expenses¥925,341¥1,003,444

Ordinary Expenses from the Life Insurance Business

827,717

898,925

297,973

287,451

Insurance claims

76,51469,002

Annuity payments

8,224

8,577

Insurance claims and other payments

Insurance benefits

38,34642,209

Surrender payments

170,720

163,274

Other payments

1,853

2,302

Reinsurance premiums

2,314

2,085

392,766

471,593

6,834－

385,910471,576

21

17

Investment expenses

19,154

14,167

Interest expenses

56

55

1,867

2,607

348

1,692

Provision for policy reserves and others
Provision for reserve for outstanding claims
Provision for policy reserves
Interest portion of reserve for policyholders'dividends

Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities

23－

Foreign exchange losses, net

618

1,373

Provision for reserve for possible loan losses

202

Depreciation of real estate for rent and others

2,471

2,257

Other investment expenses

6,278

6,178

Losses on separate accounts, net

7,470

－

Operating expenses

99,239105,324

Other ordinary expenses

18,583

20,388

Ordinary Expenses from the Non-life Insurance Business

71,58976,674

Underwriting expenses

54,12357,673Net losses paid

39,25645,032

Loss adjustment expenses

4,782

5,081

Net commission and brokerage fees

957

972

Provision for reserve for outstanding losses

3,178

3,287

Provision for underwriting reserves

5,948

3,298

0

0

Other underwriting expenses
Investment expenses

2

4

Losses on sale of securities—

0

Losses on redemption of securities

2

4

17,427

18,918Operating, general and administrative expenses
Other ordinary expenses

36

77(Continued)

14

(Millions of yen)
For the year ended
March 31, 2011
Ordinary Expenses from the Banking Business

For the year ended
March 31, 2012

¥26,033

Interest expenses¥27,844

10,448

8,798

8,402

6,879

Interest expenses on call money and bills sold

12

10Interest on borrowed money

50

95

Interest expenses on deposits

Interest expenses on bonds
Interest expenses on interest rate swaps
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains

－

23

1,980

1,784

2

4

1,221

1,416

480

735

13,36016,322523

571

76,86074,6250

99

Gains on disposal of fixed assets

00Reversal of reserve for employees' retirement benefits

－

99

8,801

9,073

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
Provision for reserve for price fluctuations
Others

72

77

1,291

274

290

－

7,147

8,568

7,147

8,568

－

153

Provision for Reserve for Policyholders'Dividends

1,257

958

Income Before Income Taxes

66,80064,693

Income Taxes

25,08331,86733,98328,361- Current- Deferred
Income Before Minority Interests
Minority interests in income
Net Income

15(8,899)3,505

41,71632,825－

13¥41,716¥32,812

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the year ended
March 31, 2011
Income Before Minority Interests

For the year ended
March 31, 2012

¥41,716¥32,825

Net unrealized gains (losses) on other securities, net of taxes(8,986)28,422

Net deferred losses on hedging instruments, net of taxes

(598)

(855)

Other comprehensive income

Land revaluation, net of taxes

－

103

(168)

(122)

0

1

(9,752)

27,55031,96360,376Comprehensive income attributable to parent company

31,96360,362Comprehensive income attributable to minority interests－

13

Foreign currency translation adjustments
Share of other comprehensive income of affiliates accounted
for using equity method
Total other comprehensive income
Comprehensive income(Details)

16

3. Consolidated Statements of Changes in Net Assets(Millions of yen)
For the year ended
March 31, 2011

For the year ended
March 31, 2012

Shareholders' Equity
Common stock¥19,900¥19,900－－

19,90019,900195,277

195,277－－

195,277

195,277

39,35074,565

Dividends from surplus(6,525)(8,700)Net income

41,71632,812

23－

Total changes during the period

35,215

24,112

Balance at the end of the current period

74,56598,677

254,527

289,742Dividends from surplus(6,525)(8,700)Net income

41,71632,812

23－

Total changes during the period

35,215

24,112

Balance at the end of the current period

289,742

313,854

17,511

8,525

Net changes of items other than shareholders'equity(8,986)28,424

Total changes during the period(8,986)28,424

Balance at the end of the current period

8,525

36,949Balance at the beginning of the fiscal year
Changes during the period
Total changes during the period
Balance at the end of the current period
Capital surplus
Balance at the beginning of the fiscal year
Changes during the period
Total changes during the period
Balance at the end of the current period
Retained earnings
Balance at the beginning of the fiscal year
Changes during the period

Reversal of land revaluation

Total shareholders'equity
Balance at the beginning of the fiscal year
Changes during the period

Reversal of land revaluation

Total accumulated other comprehensive income
Net unrealized gains on other securities, net of taxes
Balance at the beginning of the fiscal year
Changes during the period(Continued)

17

(Millions of yen)
For the year ended
March 31, 2011

For the year ended
March 31, 2012

Net deferred losses on hedging instruments, net of taxes
Balance at the beginning of the fiscal year¥(960)¥(1,558)

Net changes of items other than shareholders'equity

(598)

(855)

Total changes during the period

(598)

(855)

Balance at the end of the current period(1,558)(2,414)(1,475)(1,499)Net changes of items other than shareholders'equity

(23)

103

Total changes during the period

(23)

103

Balance at the end of the current period(1,499)(1,395)

(163)

(331)

Net changes of items other than shareholders'equity

(168)

(122)

Total changes during the period

(168)

(122)

Balance at the end of the current period

(331)

(453)

14,912

5,135

Changes during the period

Land revaluation, net of taxes
Balance at the beginning of the fiscal year
Changes during the period

Foreign currency translation adjustments
Balance at the beginning of the fiscal year
Changes during the period

Total accumulated other comprehensive income
Balance at the beginning of the fiscal year
Changes during the period
Net changes of items other than shareholders'equity(9,776)27,550Total changes during the period(9,776)27,550

Balance at the end of the current period

5,135

32,685－－

Net changes of items other than shareholders'equity

－

1,260

Total changes during the period

－

1,260

Balance at the end of the current period

－

1,260

269,439

294,877

Minority interests
Balance at the beginning of the fiscal year
Changes during the period

Total Net Assets
Balance at the beginning of the fiscal year
Changes during the period
Dividends from surplus(6,525)(8,700)Net income

41,71632,812

23－(9,776)

28,811

Reversal of land revaluation
Net changes of items other than shareholders'equity
Total changes during the period

25,43852,923

Balance at the end of the current period¥294,877¥347,800

18

4. Consolidated Statements of Cash Flows(Millions of yen)
For the year ended
March 31, 2011

For the year ended
March 31, 2012

Cash flows from operating activities
Income before income taxes¥66,800¥64,693

Depreciation of real estate for rent and others

2,471

2,257

Depreciation and amortization

4,964

6,032

Impairment losses

1,291

274

501

560

Increase (decrease) in reserve for outstanding claims

10,013(930)

Increase in policy reserve
Increase in interest portion of reserve for policyholders'
dividends
Increase (decrease) in reserve for policyholders' dividends

391,858

474,875

21

17

1,257

958

334

274

2,925

3,088

80

(87)

7,147

8,568

1

1

Interest income and dividends(111,723)(123,395)(Gains) losses on securities(22,935)(36,774)

Interest expenses

10,504

8,853

Exchange losses

15,357

5,355

Amortization of goodwill

Increase in reserve for possible loan losses
Increase in reserve for employees' retirement benefits
Increase (decrease) in reserve for directors' retirement benefits
Increase (decrease) in reserve for price fluctuations
Increase in reserve for financial products transaction liabilities

Losses on disposal of tangible fixed assets

338

78

Equity in losses of affiliates

944

1,179

Net increase in loans(136,126)(113,103)

Net increase in deposits

137,829

111,022

Net (increase) decrease in call loans and bills bought

45,079－Net (increase) decrease in foreign exchange (assets)(3,332)

(503)

(3)

18

Others, net

26,46828,269Net increase (decrease) in foreign exchange (liabilities)
Subtotal

452,072

441,584

Interest and dividends received

118,903

132,119

Interest paid

(11,123)(9,192)

Policyholders' dividends paid

(1,516)(1,692)

Income taxes paid

(30,752)(38,554)

Net cash provided by operating activities

527,582

524,264(Continued)

19

(Millions of yen)
For the year ended
March 31, 2011

For the year ended
March 31, 2012

Cash flows from investing activities
Investments in monetary trusts¥(2,290)¥(500)

Proceeds from sale of monetary trusts

33,3816,000(1,441,560)(1,037,882)

Proceeds from sale and redemption of securities

886,094563,557

Investments in loans(46,680)(48,888)

Collections of loans

19,26323,333

Total of net cash used in investment transactions(551,791)(494,379)

Total of net cash provided by (used in) operating activities andinvestment transactions(24,209)29,884Purchases of tangible fixed assets(1,112)(955)

Proceeds from sale of tangible fixed assets

1,450

0

Purchases of intangible fixed assets
Proceeds from purchase of investments in subsidiaries resulting
in change in scope of consolidation
Payments for transfer of business(8,310)(14,880)

－

346

－

(2,328)(7)(1)(559,771)(512,198)

－

9,962

(6,521)(8,696)

Balance from securitization of lease receivables－

550

Others(38)(33)(6,560)

1,782

(40)

(0)

Purchases of securities

OthersNet cash used in investing activities
Cash flows from financing activities
Proceeds from issuance of bonds
Cash dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(38,790)

13,848Cash and cash equivalents at beginning of the fiscal year

200,593

161,803

Cash and cash equivalents at end of the fiscal year

¥161,803¥175,651

Note: Cash flows from investing activities include cash flows from lending operations of the insurance business.

20

5. Additional Information(Amendments to amounts of deferred tax assets and deferred tax liabilities due to 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 the Great 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% to38.01% for provisional differences and others, expected to be eliminated from the consolidated fiscal year beginning April 1,
2012, through the consolidated fiscal year beginning on April 1, 2014, and will 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 from 36.21% to33.33% for provisional differences and others, expected to be eliminated during the period beginning from the fiscal year
beginning on April 1, 2012, through the fiscal year beginning on April 1, 2014, and the tax rate on provisional differences andothers, 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 in tax rates will reduce deferred tax
assets (net of deferred tax liabilities) by ¥4,582 million, and will raise deferred income taxes by ¥7,104 million. Moreover,deferred tax liabilities on land revaluation will decline by ¥103 million, and land revaluation, net of tax, will increase by the sameamount.
Additionally, beginning from the fiscal year starting on April 1, 2012, the use of tax loss carryforwards will be limited to theequivalent of 80% of taxable income before deducting tax loss carryforwards. This change has no effect on the Group’s
performance.

21

6. Notes to the Consolidated Financial Statements
1) Segment Information
For the year ended March 31, 2011
(1) Outline of reporting segments
The SFH Group's reporting segments are components of the Group whose operating results are regularly reviewed by the
Board of Directors to make decisions about resources to be allocated to the segments and assess their performance, forwhich discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank Inc., andpursues financial group strategies. The subsidiaries make their own business plans and engage in business activities fromwhich they may earn revenues and incur expenses, under the Insurance Business Law of Japan, the Banking Law of Japan,
and other regulations.
The SFH Group consists of three reporting segments: the life insurance business, the non-life insurance businessand the banking business.
● The life insurance business consists of Sony Life Insurance Co., Ltd., Sony Life Insurance (Philippines)
Corporation, AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd.
● The non-life insurance business consists of Sony Assurance Inc.
● The banking business consists of Sony Bank Inc.and Sony Bank Securities Inc.
(2) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andintangible fixed assets

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥898,513
1,846
900,359
72,172
4,721,641¥74,1642
74,166
2,144
109,382¥29,52335
29,5592,407
1,761,072¥1,002,201
1,883
1,004,085
76,724
6,592,097

5,310

729

1,481

7,521

87,69556

784－

23,666
10,448112,146
10,504(944)
10,980

－
－

－
－

(944)
10,980¥7,297¥2,557¥1,371¥11,226

22

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts

Totals of reporting segments
Adjustments for intersegment transactions
Ordinary revenues in statement of income

Millions of yen
For the year ended
March 31, 2011
¥1,004,085(1,883)¥1,002,201

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income

Millions of yen
For the year ended
March 31, 2011¥76,72412
123¥76,860

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Assets in balance sheets

Millions of yen
For the year ended
March 31, 2011
¥6,592,097
(862)
5,905
¥6,597,140

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

Millions of yen
For the year ended March 31, 2011
Consolidated
Total
Adjustments
financialstatements¥7,521¥1¥7,522
112,146(422)
111,723
10,504(0)
10,504
－
(944)
(944)
－
10,98010,980¥11,22623¥17¥11,243

For the year ended March 31, 2012
(1) Outline of reporting segments
The SFH Group's reporting segments are components of the Group whose operating results are regularly reviewed by the
Board of Directors to make decisions about resources to be allocated to the segments and assess their performance, forwhich discrete financial information is available.
SFH is the financial holding company of Sony Life Insurance Co., Sony Assurance Inc., and Sony Bank Inc., andpursues financial group strategies. The subsidiaries make their own business plans and engage in business activities fromwhich they may earn revenues and incur expenses, under the Insurance Business Law of Japan, the Banking Law of Japan,
and other regulations.
The SFH Group consists of three reporting segments: the life insurance business, the non-life insurance businessand the banking business.
● The life insurance business consists of Sony Life Insurance Co., Ltd., Sony Life Insurance (Philippines)
Corporation, AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd.
● The non-life insurance business consists of Sony Assurance Inc.
● The banking business consists of Sony Bank Inc., Sony Bank Securities Inc. and SmartLink Network, Inc.
(2) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit
Segment assets
OthersDepreciation
Interest income anddividends
Interest expenses
Equity in earnings(losses) of affiliates
Investments in affiliates
Increase in tangible
fixed assets andintangible fixed assets

Millions of yen
Non-life
Banking
insurancebusinessbusiness

Total¥965,555
2,027
967,582
68,187
5,219,990¥80,0941
80,096
2,859
118,612¥32,420
133
32,553
3,463
1,897,694¥1,078,070
2,162
1,080,232
74,5097,236,297

5,567

1,033

1,822

8,422

98,071
55873－

24,871
8,825

123,816
8,880(1,179)
9,718

－
－

－
－

(1,179)9,718¥9,081¥4,256¥2,722¥16,06024

(3) Reconciliations of the totals of each segment item to corresponding enterprise amounts

Totals of reporting segments
Adjustments for intersegment transactions
Ordinary revenues in statement of income

Millions of yen
For the year ended
March 31, 2012
¥1,080,232(2,162)¥1,078,070

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Ordinary profit in statement of income

Millions of yen
For the year ended
March 31, 2012
¥74,50910
106¥74,625

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reporting segments
Assets in balance sheets

Millions of yen
For the year ended
March 31, 2012
¥7,236,297(11,116)
16,233¥7,241,414

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

Millions of yen
For the year ended March 31, 2012
Consolidated
Total
Adjustments
financialstatements¥8,422¥7¥8,430123,816(421)
123,395
8,880
(27)
8,853
－
(1,179)(1,179)
－
9,718
9,718
¥16,06025¥27¥16,088

Relative information
For the year ended March 31, 2011
1. Information by business segment
Life insurance
business
Ordinary revenues from
External customers¥898,513

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥74,164

Total¥29,523¥1,002,201

2. Geographic segment information(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers inJapan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.
For the year ended March 31, 2012
1. Information by business segment
Life insurance
business
Ordinary revenues from
External customers¥965,555

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥80,094

Total¥32,420¥1,078,070

2. Geographic segment information(1) Ordinary revenues
Ordinary revenues information by geographic segment is not shown, as ordinary revenues from external customers inJapan accounted for more than 90% of ordinary revenues in the consolidated statements of income.
(2) Tangible fixed assets
Information on tangible fixed assets by geographic segment is not shown, as tangible fixed assets in Japan accounted
for more than 90% of tangible fixed assets in the consolidated balance sheets.
3. Information by major client
Information by major client is not shown, as ordinary revenues from external customers who are major clients
accounted for less than 10% of ordinary revenues in the consolidated statements of income.
Information on impairment losses on fixed assets by business segment
For the year ended March 31, 2011
Millions of yen
Reporting segments
Life insurance
business
Impairment losses¥1,291

Non-life
insurancebusiness－

For the year ended March 31, 2012
No significant items to be reported.

26

Bankingbusiness－

OthersConsolidated

Total¥1,291－¥1,291

Information on amortization of goodwill and unamortized balance by business segment
For the year ended March 31, 2011
Millions of yen
Reporting segments
OthersConsolidated

Life insurance
business

Non-life
insurancebusiness

－

－

¥501

¥501

－

¥501

－

－

¥1,002¥1,002－¥1,002

Amortization of
goodwill
Balance at end of
periodFor the year ended March 31, 2012

Bankingbusiness

Total

Millions of yen
Reporting segments
OthersConsolidated

Life insurance
business

Non-life
insurancebusiness

－

－

¥560

¥560

－

¥560

－

－

¥839

¥839

－

¥839

Amortization of
goodwill
Balance at end of
periodInformation on negative goodwill by business segment
For the year ended March 31, 2011
No significant items to be reported.
For the year ended March 31, 2012
No significant items to be reported.

27

Bankingbusiness

Total2) Financial Instruments(1) Fair value information on financial instruments
Below is fair value information on financial instruments as of March 31, 2012, excluding securities whose fair values are notreadily determinable.
Financial assets
Millions of yen
As of March 31, 2012

Cash and due from banks
Call loans and bills bought
Monetary trusts
Securities
Trading securities
Held-to-maturity securities
Available-for-sale securities
Loans
Reserve for possible loan
losses*Total Financial Assets

Consolidatedbalance sheet
amount¥118,877
66,300303,058

Fair value

Difference¥118,877
66,300303,058－－－

430,4903,649,509
1,572,936－¥157,983－

1,060,456¥7,201,628

86,809¥244,792

430,490
3,491,526
1,572,936
975,032(1,385)
973,646¥6,956,836* Excludes general and specific reserves for possible loan losses.
Financial liabilities
Millions of yen
As of March 31, 2012

Deposits
Call money and bills soldBonds payable
Total Financial Liabilities

Consolidatedbalance sheet
amount¥1,760,853
10,00010,000¥1,780,853

Fair value¥1,761,516
10,00010,028¥1,781,544

Difference
¥663
－
28
¥691

Derivative financial instruments
Millions of yen
As of March 31, 2012

Hedge accounting not applied*
Hedge accounting applied
Total Derivative Financial
Instruments

Consolidatedbalance sheet
amount¥1,091(16,101)

Fair value¥(15,009)

Difference¥1,091(16,101)－－¥(15,009)－* Figures are totals resulting from derivatives transactions, which are accounted for as other assets and liabilities on the
consolidated balance sheets. If the total is a debt amount, the above figure is negative.

28

Calculation of the fair value of financial instruments
Financial Assets
Cash and due from banks, call loans and bills bought
The fair value is regarded as the carrying amount, as they are approximately equal.
Monetary trusts
In individual monetary trusts mainly for investment purposes, the fair value of bonds is the market price on financial
instrument exchanges or the price indicated by a financial institution. Please see“investment in monetary trust,”whichindicates fair values by purpose.
Securities
The fair value of stocks is the market price on stock market or financial instrument exchanges. The fair value of bonds
and investment funds is the market price or the price indicated by a financial institution. Please see“investment insecurities,”which indicates fair values by purpose.
Loans(i) Loans in the banking business
The value of these loans is calculated by estimating their future cash flows and then applying a prescribed discountrate. The discount rate is determined by adding to the Libor-based yield curve a rate corresponding to a set risk
premium. On loans to individual customers, the risk premium equals the rate used to determine the reserve forpossible loan losses. For loans to corporate customers, the rate equals the cumulative default rate, determined byrating.
(ii) Policy loans in the life insurance business
Policyholder loans are valued by discounting future cash flows to their current value. For automatic premium loans,the book value is used as a near approximation of their fair value.
Financial Liabilities
Deposits
The value of deposits is calculated by type, by estimating their future cash flows and then applying a prescribed discountrate. The discount rate is determined by adding to the Libor-based yield curve a premium corresponding to the banking
subsidiary's cumulative default rate by rating.
Call money and bills sold
The fair value is regarded as the carrying amount, as they are approximately equal.
Bonds payable
The fair value of bonds payable is the market price on bond and other markets.

29

Derivative Transactions
Please see“derivative financial instruments,”which indicates calculations of fair value.
Securities whose fair values are not readily determinable
Millions of yen
As of March 31, 2012
Non-consolidated subsidiaries and affiliates¥9,795that are unlisted*1
Japanese stocks that are not listed on the4stock market*1*2
26,831
Investment in partnership¥36,631Total*1. Unlisted stocks have no market prices and fair values are not readily determinable.
*2. Assets included in“investment in partnership”are stocks in unlisted companies.
Note: Impairment losses on non-consolidated subsidiaries stocks and investment in partnership were recognized as¥320 million for the year ended March 31, 2012. Impairment losses are principally recorded when their fair value as ofthe end of the fiscal year has declined by 50% or more from the acquisition cost.
The future redemption schedule of monetary claims and securities with maturities

1 year or less
Cash and due from banks
Call loans and bills bought
Securities
Held-to-maturity securities
Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
OthersAvailable-for-sale securities
Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
OthersLoans*
Total¥118,877
66,300Millions of yen
As of March 31, 2012
More than 5More than 1
year to 5 years
years to 10 years－－－－

Over 10 years－－

23,508¥18,104¥26,701¥3,407,496

20,56815,27823,464

3,329,500

2,540
400
222,8932,526
300
497,643

3,137
100
197,835

22,89655,100550,837

24,60087,672

131,401

549,550

122,995
75,29815,755¥447,334

140,341
269,630
65,743¥581,491

28,12938,30436,770¥261,306

100
1,187
717,794¥4,676,129* This figure excludes loans of ¥138,801 million that have no fixed redemption period such as policyholder loans.

The future return schedule of deposits and other liabilities with interest

1 yearor less
Deposits*
Call money and bills soldBonds payable
Total¥1,675,928
10,000－¥1,685,928

More than
1 yearto 2 years¥22,119－－¥22,119*Demand deposits are included in“1 year or less.”

30

Millions of yen
As of March 31, 2012
More than More than
2 years
3 years
to 3 years
to 4 years¥15,030¥8,528－－－－¥15,030¥8,528More than
4 years
to 5 years¥3,601－
10,000¥13,601

More than
5 years¥35,645－－¥35,645

3)Investments in Securities
Trading securities
Millions of yen
For the year ended
March 31,2012
Valuation losses
charged to income¥30,976

Held-to-maturity securities

Fair values exceeding the consolidatedbalance sheet amount
Consolidated
Grossbalance sheet unrealized Fair value
amountgains
Bonds
Japanese government
and municipal bonds
Japanese corporate
bonds
Others
Total

Millions of yen
As of March 31, 2012
Fair values not exceeding the consolidatedbalance sheet amount
Consolidated
Grossbalance sheet unrealized
Fair value
amountlossesConsolidatedbalance sheet
amountTotal
Net
unrealized
lossesFair value¥3,078,311¥158,094¥3,236,406¥338,078¥(4,307)¥333,771－－－

31,376

1,504

32,880

－

－

－

－

－

－

43,759¥3,153,447

2,691¥162,290

46,451¥3,315,737－¥338,078－¥(4,307)－¥333,771－¥3,491,526－¥157,983－¥3,649,509

Available-for-sale securities

Fair values exceeding the consolidatedbalance sheet amount
Consolidated
Gross
Acquisition
balance sheet unrealized
cost
amountgains
Bonds
Japanese government
and municipal bonds
Japanese corporate
bonds
Equity securities
Others
Total

Millions of yen
As of March 31, 2012
Fair values not exceeding the consolidatedbalance sheet amount
Consolidated
Gross
Acquisition
balance sheet unrealized
cost
amountlosses

Total
Consolidatedbalance sheet
amountNet
unrealized
gains

Acquisition
cost¥772,338¥35,754¥736,584¥63,908¥(882)¥64,791－－－

272,219

1,625

270,594

22,929(213)

23,143－－－29,313
252,447¥1,326,319

6,225
7,207
¥50,81223,088245,239¥1,275,506

6,256
153,522¥246,617(480)(2,665)¥(4,242)6,737
156,187¥250,859－－¥1,572,936－－¥46,570－－¥1,526,366

Note: This chart as of March 31, 2012, excludes ¥4 million in unlisted stocks and an investment in partnership of ¥26,831 million (consolidated balance sheet
amounts).

31

Available-for-sale securities sold during the period

Bonds
Japanese government andmunicipal bonds
Japanese corporate bonds
Equity securities
Others
Total

Millions of yen
For the year ended March 31, 2012
Sales
Gains on sales
Losses on sales¥106,089¥5,243¥233

14,867
18,93931,444¥171,341

125
1,862
942
¥8,173209
2,411
4¥2,858

Impairment of available-for-sale securities:
Available-for-sale securities with market value are considered impaired if the market value decreases materially below theacquisition cost and such decline is considered non-recoverable. The market value is recognized as the consolidated balance
sheet amount and the write-down is accounted for as a devaluation loss for the fiscal year.
Impairment losses on available-for-sale securities were recognized as ¥1,470 million for the year ended March 31, 2012.
“Material decline”is indicated when the market value is 30% or less than the acquisition cost.

324) Investments in Monetary Trusts
Other monetary trusts

Other monetary trusts

Consolidatedbalance sheet
amount¥303,058

Millions of yen
As of March 31, 2012
Gross
Gross
unrealized
unrealized
gains
losses－¥20,359

Acquisition
cost¥282,699

Note: Jointly invested monetary trusts included in the table above amount to ¥271 million for the year ended March 31, 2012.

Impairment of other monetary trusts
Securities with market values that are included in monetary trusts for purposes other than trading, holding to maturity or policy
reserve matching are considered impaired if their market value decreases materially below the acquisition cost and suchdecline is considered non-recoverable. Their market value is recognized as the consolidated balance sheet amount and thewrite-down is accounted for as a devaluation loss for the fiscal year.
No impairment loss was recognized for the year ended March 31, 2012.
“Material decline”is indicated when the market value is 30% or less than the acquisition cost.

335) Derivative Financial Instruments(1) Hedge accounting not applied
Below is a summary of contractual or notional amounts, current market or fair values, valuation gains or losses, and themethod of calculating the fair values of derivatives, classified by transaction, to which hedge accounting is not applied.
Notional amounts do not indicate exposure to credit loss.
(i) Interest rate derivatives

Over-the-counter transactions
Interest rate swaps
Total

Millions of yen
As of March 31, 2012
Notional amountOver
Fair value
Total
1 year¥20,000－¥20,000－

Valuation
losses¥(350)¥(350)¥(350)¥(350)

Notes:
1. The above transactions are valued at market, and valuation losses are recorded in the consolidated statements of income.
2. Market value is calculated using discounted present value.

(ii) Currency derivatives

Over-the-counter transactions:
Forward foreign exchanges:
Sold
BoughtForeign exchange margintransactions
Sold
BoughtCurrency options
Sold
Currency forward contracts
BoughtTotal

Millions of yen
As of March 31, 2012
Notional amountOver
Fair value
Total
1 yearValuation
gains (losses)¥34,949
77,584

－
－

¥60
(359)

¥60
(359)

33,638
9,409

－
－

1,268
441

1,268
441

151

－

(1)

0

5,299
－

－
－

31
¥1,44131¥1,443

Notes:
1. The above transactions are valued at market, and valuation gains and losses are recorded in the consolidated statements of income.
2. Market values are calculated using discounted present value and option pricing models.

(iii) Credit derivatives transactions

Over-the-counter transactions
Credit default options
BoughtTotal

Millions of yen
As of March 31, 2012
Notional amountOver
Fair value
Total
1 year¥1,367－－－

Valuation gains

¥0
¥0

¥0
¥0

Notes:
1. The above transactions are valued at market, and valuation gains are recorded in the consolidated statements of income.
2. Market values are calculated based on factors such as the values of underlying assets and contract terms and other methods.
3.“Bought”represents transactions in which the credit risk is transferred.

34

(2) Hedge accounting applied
The following provides a summary of contractual or notional amounts, current market or fair values, valuation gains orlosses, and the method of calculating the fair values of derivatives, classified by transactions, to which hedge accounting isapplied. Notional amounts do not indicate exposure to credit loss.
(i) Interest rate derivatives
Notional amountOver
1 yearMillions of yen
As of March 31, 2012
Fair value

Total
Deferred hedge accounting
Interest rate swaps
Fair value hedge accounting
Interest rate swaps
Total

Hedged item

¥134,709¥133,989¥(4,427) Loans

244,706－

219,921－(13,472) Available-for-sale securities (bonds)¥(17,899)

Notes:
1. SFH applies deferred hedge accounting and fair value hedge accounting in accordance with“Accounting and Auditing Treatments on Application of
Accounting Standard for Financial Instruments in the Banking Industry”(Industry Audit Committee of Japanese Institute of Certified Public
Accountants No. 24).
2. Market value is calculated using discounted present value.

(ii) Currency derivatives

Fair value hedge accounting
Currency swaps
Total

Notional amount
Over
Total
1 year¥89,740－

Millions of yen
As of March 31, 2012

¥34,800－

Notes:
1. SFH applies mainly fair value hedge accounting.
2. Market value is calculated mainly using discounted present value and other methods.

35

Fair value

Hedged item

¥1,798 Available-for-sale securities (bonds)¥1,798

6) 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 years ended March 31, 2011 and 2012, net income per share was ¥95.90 and ¥75.43, respectively. There were no potential
dilutive securities. Net assets per share, based on the number of shares of common stock outstanding as of March 31, 2011,
and 2012, were ¥677.88 and ¥796.64, respectively.
The basis for this calculation for the years ended March 31, 2011, and 2012 is net income of ¥41,716 million and¥32,812 million, respectively, the entire amounts of which are applicable to common stock. The weighted-average number ofshares outstanding for the years ended March 31, 2011, and 2012, was ¥435 million.
Note: Although a stock split was conducted during the year ended March 31, 2012, net income per share and net assets per
share for the year ended March 31, 2011, were calculated assuming that the stock split was conducted at the beginning of theprevious fiscal year.
(Change in accounting policies)
From the year ending March 31, 2012, we have applied the “Accounting Standard for Earning Per Share”(AccountingStandards Board of Japan [ASBJ] Statement No.2 of June 30, 2010), the “Guidance on Accounting Standard 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).

7) Subsequent Events
There were no applicable subsequent events.

36

SFH’s consolidated results* are prepared in accordance with accounting principles and practices generally
accepted in Japan. As such, these figures differ in significant respects from financial information reported by
SFH’s parent company, Sony Corporation, which prepares its financial statements in accordance withaccounting principles and practices generally, accepted in the United States.
*SFH’s scope of consolidation includes Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony
Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, Sony Bank Securities Inc., andSmartLink Network, Inc. It also includes AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., asaffiliated companies accounted for under the equity method. Smart Link Network, Inc. was not included in thescope of consolidation for the year ended March 31, 2011.
On May 10, 2012, Sony Corporation announced its consolidated financial results for the fiscal year ended
March 31, 2012. SFH Group companies constitute the majority of Sony Group’s financial services segment.
However, the scope of Sony Group’s financial services segment differs from the scope of SFH’s consolidated
results. For the scope of Sony Group’s financial services segment, please refer to the May 10, 2012, news
release by Sony Corporation.
This Consolidated Financial Summary contains statements concerning the current plans, expectations,strategies and beliefs of the SFH Group. Any statements contained herein that pertain to future operating
performance and that are not historic facts are forward-looking statements. Forward-looking statements may
include—but are not limited to—statements using words such as “believe,” “anticipate,” “plan,” “strategy,”“expect,” “forecast,” “predict,” and “possibility” that describe future operating activities, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, are based on
judgments made by the management of the SFH Group, based on information that is currently available to it.
As such, these forward-looking statements are subject to various risks and uncertainties, and actual businessresults may vary substantially from the forecasts expressed or implied in forward-looking statements.
Consequently, investors are cautioned not to place undue reliance on forward-looking statements. The SFH
Group disclaims any obligation to revise forward-looking statements in light of new information, future eventsor other findings. The information contained in this Consolidated Financial Summary does not constitute orform part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe forany securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract orcommitment whatsoever.
For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/web/index_en.html

37

V. Attachment
Content of Presentation Material
1.
2.
3.
4.
5.

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

38

3
27
29
31
33

Presentation Material

Consolidated Financial Results for theYear Ended March 31, 2012
andSony Life’s Preliminary
M k t ConsistentMarketCi t t Embedded
E b dd d V
ValuelSony Financial Holdings Inc.
May 18, 2012

Content■Consolidated Operating Results for the Year Ended March 31, 2012
P.3
■Consolidated Financial Forecast for the Year Ending March 31, 2013
P.27
■Dividend Policies
P.29■ Sony Life’sLife s Preliminary MCEV as of March 31, 2012,
and Risk Amount Based on Economic Value

P.31■ Appendix

P.33

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
forward-looking
looking statements.
statements Forward-looking
Forward looking statements may include
include—but
but are not limited to—towords 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 toplace undue reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking
statements in light of new information, future events or other findings. The information contained in this presentation does notconstitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any
p of it form the basis of or be relied on in connection with anyy contract or commitment
securities,, nor shall it or anyy partwhatsoever.

2Consolidated Operating Results for
the Year Ended March 31, 20123

Highlights of Consolidated Operating Performancefor the Year Ended March 31, 2012 (1)Ordinary revenues

Ordinary profit(Billions of yen)

1 002 2
1,002.2+7.6%(2.9%)

1,078.0

74.6

76.8

ChangeOrdinary revenues

900.3

967.5

+67.2

+7.5%

Ordinary profit

72.1

68.1

(3.9)

(5.5%)

Non-life
insurancebusiness

Ordinary revenues

74.1

80.0

+5.9

+8.0%

2.1

2.8

+0.7

+33.3%

Bankingbusiness

Ordinary revenues

29.5

32.5

+2.9

+10.1%

2.4

3.4

+1.0

+43.9%

Intersegment

Ordinary revenues

(1.8)

(2.1)

(0.2)

－

adjustments*
adjustments

Ordinary profit

0.1

0.1

(0.0)

(14.0%)

Ordinary profit

Ordinary profit

Consolidated

FY2011FY2011Lifeinsurancebusiness

1,002.2

1,078.0

+75.8

+7.6%

Ordinary profit

76.8

74.6

(2.2)

(2.9%)

N t iincome
Net

41 7
41.7

32 8
32.8

(8 9)
(8.9)

(21 3%)(21.3%)

Ordinary revenues

FY2010FY2010*Amounts in the Ordinary profit in the “Intersegment adjustments” are mainly from SFH.

(Billions of yen)
11.3.3112.3.31

Change from 11.3.31

Total assets

6,597.1

7,241.4+644.2+9.8%

Net assets

294.8

347.8

+52.9

+17.9%(Billions of yen)

Consolidated(Note) Comprehensive income: FY2010: ¥31.9 billion, FY2011: ¥60.3 billion

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

4

Highlights of Consolidated Operating Performancefor the Year Ended March 31, 2012 (2)<Comparison with the previous year>Life Insurance: Ordinary revenues increased, due mainly to higher income from insurance premiums associated withsteady increases in the policy amount in force, as well as an increase in investment income accompanied with market
recovery towards the end of the fiscal year
year. Ordinary profit decreased
decreased, due to lower gains on sale of securities
securities,
reflecting the process of shifting bond holdings to ultralong-term bonds 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: Ordinaryy revenues increased,, due to an increase in net premiumspwritten,, as the number of
insurance policies in force grew primarily for our automobile insurance. Ordinary profit increased, due mainly to theincrease in ordinary revenues and a reversal of catastrophe reserve, although a rise in net losses paid for automobile
insurance resulted in the higher loss ratio.

Banking: Ordinary revenues increased, due to an increase in net fees and commissions resulting from Sony Bank’s
acquisition
i iti off S
SmartLinktLi k N
Network,tk IInc. on JJuly
l 1
1, 2011 as itits consolidated
lid t d subsidiary.
b idiOOrdinarydiprofitfit rose ddue tto a riseiin gross operating profit resulting from an increase in net interest income. The net interest income increased due mainly
to higher interest income on loans led by the growing balance of mortgage loans and a decrease in interest expenses
on yen deposits.

Consolidated ordinary revenues increased 7
7.6%,
6% to ¥1
¥1,078.0
078 0 billion
billion, however
however, consolidated ordinary profit
decreased 2.9%, to ¥74.6 billion. Consolidated net income decreased 21.3%, to ¥32.8 billion due to the decline inconsolidated ordinary profit and an increase in income taxes owing to a reversal of deferred tax assets associated withthe reduction in the corporate tax rate.

<Comparison with Our Original Financial Forecast> In February, 2012, SFH revised upward consolidated ordinary revenues and consolidated ordinary profit on its FY11
forecast from the original announcement in May 2011. The major reasons for the revision were the lower insurance
claims and other payments relating to the Great East Japan Earthquake than we had estimated at the end of March2011 as well as gains on sale of securities during the third quarter
2011,
quarter.
The actual results of consolidated operating profit exceeded the revised forecast, due mainly to the market
recovery during the fourth quarter.

5

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

Ordinary profit
Ordinary revenues

967.4
900.0

+7.5%

FY2010FY2011 (Billions of yen)

+67.3

Income from insurance premiums

770.3

816.1

+45.7

+5.9%

Investment income

119.5

133.9

+14.4

+12.1%

Interest income and dividends

87.5

97.9

+10.4

+11.9%

Income from monetary trusts, net

6.9

5.2

(1.7)

(24.4%)

Gains on sale of securities

24.9

7.5

(17.4)(69.8%)

Ordinary profit decreased due to lower gains on sale of securities,
and lower insurance claims and other payments relating to theGreat East Japan Earthquake than we had estimated as of the end
off theth previousifiscalfi
l year.

+7.5%

－

23.1

+23.1

－

826.9

897.9

+71.0

+8.6%

Insurance claims and other payments

297.9

287.4

(10.5)(3.5%)

Provision for policy reserve and others

392.7

471.5

+78.8

+20.1%

Investment expenses(25.6%)

19.3

14.3

(4.9)

Losses on sale of securities

1.8

2.6

+0.7

+39.7%

Losses on separate accounts, net

7.4

-

(7.4)

(100.0%)

99 3
99.3

105 4
105.4

+6 1
+6.1

+6 2%
+6.2%

73.1

69.4

(3.7)

(5.1%)(8.7)(21.9%)

Operating expenses
Ordinary profit

Ordinary revenues increased but ordinary profit decreased
year on year.
Income from insurance premiums increased owing to steady growthin the policy amount in force.
 Investment income increased due mainly to higher interest income
and dividends, and an improved investment performance on
separate accounts, which offset the negative impact of lower gains
on sale of securities.

Change967.4

Gains on separate accounts, net

69.4

FY2011900.0

Ordinary expenses

73.1 (5.1%)

FY2010Net income

40.2(Billions of yen)

11.3.3131.4
12.3.31

Change from 11.3.31

Securities

4,017.5

4,545.0+527.4

Policy reserves

4,371.4

4,843.0+471.5+10.8%

Total net assets

215.3

264.8

+49.4

+23.0%

7.0

34.0

+27.0

+385.3%

4,723.3

5,222.8+499.5+10.6%

398.1

444.2

+46.1

+11.6%Net unrealized gains on other securities
Total assets
Separate account assets+13.1%

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

6

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

FY2010FY2011(Reasons for changes)

ChangeNew policy amount

4,199.0

4,203.3+0.1%

Lapse and surrender amount2 143 6
2,143.6

2,056.2(4 1%)(4.1%)

Lapse and surrender rate

6.41%

5.93%

(0.48pt)

Policy amount in force

34,748.5

36,077.0+3.8%

Annualized premiums from new policies

71.2

70.8

(0.5%)Of which, third-sector products

16.6

17.1

+2.5%

604.7

635.4

+5.1%

140.7

148.9

+5.8%

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

FY2010FY2011

ChangeGains from investment, net (General account)

107.6

96.4

Core profit

56.2

71.6

+27.3%

Negative spread

63
6.3

15
1.5

(76 2%)(76.2%)

11.3.3112.3.311,720.0%,

1,980.4%,

Solvencyy Marging Ratio(10.4%)

Changefrom
11.3.31

 Remained flat, due mainly to increased sales of termylife insurance,, which offset a decrease in family
income insurance, which is life insurance with disability
benefit.
 Decreased due to the lowering lapse and surrender
rates in most products, mainly in family income
insurance, which is life insurance with disability benefit.
 Decreased due mainly to decreased sales of
educational endowment insurance and medical
insurance which offset increased sales of living benefit
insurance and term life insurance.
 Decreased due to lower gains in sale of securities inline with the shift from investing in bonds with shortterms to maturity to those with ultralong-terms, thoughinterest income and dividends increased.

 Increased,
Increased mainly reflecting lower insurance claims
and other payments relating to the Great East Japan
Earthquake than we had estimated as of the end of theprevious fiscal year, and a decease in negative spread
as well as a decrease in provision of policy reserve forminimum guarantee for variable life insurance.

+260.4ptpNotes:*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 theb i i off th
beginning
the fifiscall year.
*3 The solvency margin ratio has been calculated according to the new standard, which became effective as ofthe end of fiscal 2011 (March 31, 2012).

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

7

Sony Life Operating Performance (1)Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)

Number and Amount of New Policies(Individual Life Insurance + Individual Annuities)
New policy amount

Annualized premiums from new policies

Number of new policies

Of which, third-sector(Thousands of policies)

582

591

599

600

534

500

5.0

4.0

80

(1.3%)(Trillions of yen)

3.87

4 04
4.04

68.7

70

(0.5%)

60

400+0.1 %

50

3.0

300

2.0

200

40
30
+2.5%

20

100

10
1.0
0

0
FY2008FY2009

70.8

71.2

61.6

4.20

4.19

(Billions of yen)

FY2010FY2011

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

10

13.4

16.2

16.6

17.1

FY2008FY2009FY2010FY20110Line item amounts are truncated below ¥100 million; percentage figures are rounded.

8

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

Number and Amount of Policies in Force(Individual Life Insurance + Individual Annuities)
Policy amount in force(Millions of policies)(Trillions of yen)

5.67

+6.2%

50

40

32 5
32.5

(Billions of yen)

635.4

6

5.34
4.70

604 7
604.7

600

5.01

547.8

5

33 4
33.4

36.0

34.7

Of which, third-sector

Annualized premiums from insurance in force

Number of policies in force

573.3+5.1 %

500

4+3.8 %

30

400

3
300

20
2
10

0
2009.3.31

2010.3.31

2011.3.31

200

1

100

0

0

2012.3.31

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

126.6

133 0
133.0

140.7

2009.3.31

2010.3.31

2011.3.31

+5 8%
+5.8%

148.9

2012.3.31

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

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

Income from Insurance Premiums(Individual Life Insurance + Individual Annuities)(Billions of yen)

816.1
770.3

800

（ ）
（％）

662.0
8

6.79

7.21

700.1

+5.9 %

600

6 41
6.41

5.93

6
(0.48pt)

400
4

200

2

0

0
FY2008FY2009FY2010FY2011*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.

FY2008FY2009FY2010FY2011

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

10

Sony Life Operating Performance (4)Ordinary Profit

Core Profit(Billions of yen)(Billions of yen)

80 0
80.0

80

71.6

80

73.1

69.4

64.5
(5.1%)

56 2
56.2

60

60
+27.3%

40

38.0

40

20

32 4
32.4

20

0

0
FY2008FY2009FY2010FY2011

FY2008FY2009FY2010FY2011

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

11

Sony Life Operating Performance (5)Average Assumed Interest Rate,
Investment Yield for Core Profit andInvestment yield in General Account

Negative Spread(Billions of yen)

Average assumed interest rate

4.00%

30

Investment yield in general accountInvestment yield for core profit
25

21.3

3.00%
2.54%

20

2.68%
2.43%

2.59%
15

2.00%

11.5

2.35%

2.51%

2.31%

2.17%

2.26%

FY2009FY2010

2.17%

1.90%

10

6.3

(76.2 %)

1.00%

5

1.11%

15
1.5
0

FY2008FY2009FY2010FY2011

0.00%
FY2008FY2011

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

12

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

4,036
4,000

4,045

4,017

3,891
+28

3,500

3,000
0
09.3.3110.3.3111.3.3112.3.31

Reference: Lifeplanner sales employees (rehired on a fixed-term contract basis after retirement)(Number)

09.3.3110.3.3111.3.3112.3.31

Lifeplanner*

30

39

49

71

* The table above indicates the number of Lifeplanner sales employees (rehired on a fixed-term contract basis after retirement); these are not included in the graph above.

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

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

2011.3.31

2012.3.31

Amount%3,499.980.9%

3,975.7

83.2%

Japanese stocks

64.0

1.5%

45.0

0.9%

Foreign securities

44.2

1.0%

59.6

1.2%

Foreign stocks

30.0

0.7%

30.5

0.6%

Monetary trusts

276.4

6.4%

288.2

6.0%

Policy loans

134.4

3.1%

138.7

2.9%

Real estate

75.1

1.7%

72.9

1.5%

Cash and call loans

80.0

1.9%

64.8

1.4%

Others

120.9

2.8%

102.6

2.1%

4,325.2

100.0％

4,778.5

100.0%

Japanese government
andd corporatet bondsb dAmount<Asset management review>%

On the asset side, we lengthened the duration of
securities held to match the liability characteristics
of insurance policies with long-term maturities withth aimthei off reducing
d i interesti t
t ratet risk.
i kJapanese government and corporate bonds:
Continue to accumulate ultralong-term bonds
in FY11.

<Lengthened asset duration>
10.3.31 17.6 years
11.3.31 18.5 years
12 3 31 19
12.3.31
19.2
2 years■Investment in the monetary trusts are mainly into Japanese
government and corporate bonds
bonds.
■The holding ratio on the real status, of Japanese governmentand corporate bonds including those invested in monetarytrusts in the general account assets:
As of March 31, 2012: 89.2%, (As of March 31, 2011: 87.3%)

Total

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

14

Sony Life Operating Performance (7)Adjusted Net Assets

Solvency Margin Ratio（％）(Billions of yen)

3,000

1,000

[715.5]

900

871 4
871.4

2,500
+260.4pt

2,000

800

1,980.4[629.1]700,
1,720.0

600

1,500

[583 8][583.8][505.9]

606 9
606.9

563.4

532.6

+43.6%

500
400

1,000
300
200

500

100

0

0

2011.3.31

2012.3.31

2009.3.31

Note:2010.3.31

2011.3.31

2012.3.31

Note:
Amount in [ ] excludes unrealized gains (losses) on held-to-maturity securities
and on policy reserve matching bonds.

The solvency margin ratio has been calculated according to the new standard, whichbecame effective as of the end of fiscal 2011 (March 31, 2012).

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

15

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

Ordinary profit(Billions of yen)

80.0
74.1

2.1

+5.9

+8.0%

Underwriting income

73.3

79.1

+5.7

+7.9%

Investment income

0.7

0.8

+0.1

+13.8%

72.0

77.2

+5.2
5.2

+7.2%
7.2%

Underwriting expenses

54.4

58.0

+3.5

+6.6%

Investment expenses

0.0

0.0

+0.0

+77.6%

17 4
17.4

19 0
19.0

+1.5
15

+9.1%
9 1%

Ordinary profit

2.1

2.8

+0.7

+33.3%Net income

1.2

1.2

+0.0

+0.2%

33.3%
Operating general andOperating,administrative expenses

FY2010FY2011(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 ofin force policies primarily in automobile insurance
in-force
insurance.
◆Ordinary profit increased, due mainly to the increasein ordinary revenues as well as a reversal ofcatastrophe reserve, although a rise in net losses
paid for automobile insurance resulted in the higher
loss ratio
ratio.

Change80.0

Ordinaryy expensesp

2.8

FY2011

74.1

Ordinary revenues

+8.0%
8.0%

FY2010(Billions of yen)

2011.3.31

2012.3.31

Change from 11.3.31

Underwriting reserves

64.0

67.3

+3.2

+5.1%

Total net assets

16 7
16.7

18 0
18.0

+1 2
+1.2

+7 4%
+7.4%

109.3

118.6

+9.2

+8.4%

Total assets

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

16

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

FY2010FY2011

ChangeDirect premiums written

72.8

78.3

+7.5%

 Increased owing to an increase in the

Net premiums written

73.3

79.1

+7.9%

number of policies in force primarily in
automobile insurance.

Net losses paid

39 2
39.2

45 0
45.0

+14 7%+14.7%

Underwriting profit

1.4

2.1

+43.5%Net loss ratio

60.0%

63.3%

+3.3ptNet expense ratio

25 5%
25.5%

25 7%
25.7%

+0 2pt+0.2ptCombined ratio

85.6%

89.0%

+3.4ptNumberNb off policies
li iin force
Solvency margin ratio

2012.3.31

1.38 million

1.49 million

631.0%

557.8％

increase in the number of policies inforce in automobile insurance, as wellas rising unit cost of insurance claims.

 Increased due to an increase in the

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.

2011.3.31

 Increased owing mainly to an

number of policies in force primarily
in automobile insurance.
insurance

Change from 11.3.31+0.10 million+7.6%(73.2pt)

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.
The solvency margin ratio has been calculated according to the new standard,
standard which became effective as of the end of fiscal 2011 (March 31,
31 2012).
2012)Line item amounts are truncated below ¥ 100 million; numbers of policies are truncatedbelow 10,000 policies; percentage change figures are rounded.

17

Sony Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written
FY2010Net Premiums Written
FY2011

ChangeFY2010((Millions of yyen))
Fire

185

176

(4.8%)

Marine－－－Personal accident*

7,135

7,424

+4.0%
4.0%

Voluntary automobile

65,51670,712

+7.9%

－

－

－

72,83778,313+7.5%

FY2011

ChangeCompulsory
automobile liability
Total

FY2011

Change((Millions of yen)
y )
Fire

8

72

+780.1%Marine590－Personal accident*
accident

7 369
7,369

7 626
7,626

+3 5%
+3.5%

Voluntary automobile

65,24570,457

+8.0%

714

893

+25.1%

73,343

79,141+7.9%

Compulsory
automobile liability
Total

Net losses paid
*SURE, medical and cancer insurance is included in personal accident.
FY2010(Millions of yen)
Fire

0

40

－

Marine11138－

Personal accident*

1,620

1,796

+10.9%

Voluntary automobile

36,941

42,193+14.2%

683

862+26.3%

39,25645,032+14.7%

Compulsory
automobile liability
Total

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

18

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force
V l t
Voluntary
automobilet
bil iinsurance

Ordinary Profit

Personal accident insurance(Millions of policies)

Number of policies in force

Other(Billions of yen)
+7.6%

100

1.49

1.38
1.15

79.1
73.3

67.4

2.8
2.5

1.2
2.1

+7.9 %

1

61.1

60

3

14
1.4

1.27
80

(Billions of yen)

2.1

+33.3%

2

0.8
40

06
0.6
1

0.4
20
0.2
0

0
FY2008FY2009FY20100
FY2008FY2011

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

FY2009FY2010FY2011

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

19

Sony Assurance Operating Performance (2)Reference

Combined Ratio(Net Expense Ratio + Net Loss Ratio)

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

Earned/Incurred loss ratio

Net expense ratio

（％）

100

90.2

91.9

98.1

95.2

Net loss ratio

（％）

100

81.7

+2.9pt83.3+3.4pt

80

80

89.0

85 6
85.6

72.4
60
63.5

65.8

69.7

63 3
63.3

60

57.2
55.0

+2.7pt60.0+3.3pt

40

40

20

26.7

20
26.1

25.5

FY2009FY2010+0.2pt

26.7

26.1

25.7

0

25.5

+0.2pt 25.7

0FY2008FY2011

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 outstandingllossesto earnedd premiums.
i

FY2008FY2009FY2010FY2011Net 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 toiwritten.
itt
nett premiums*Note that earthquake insurance and compulsory automobile liability
insurance are excluded from the above calculation.

20

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

1,200

800
(73.2pt)

557.8%

631.0%
400

02011.3.31

2012.3.31

Note:
The solvency margin ratio has been calculated according to the new standard, whichbecame effective as of the end of fiscal 2011 (March 31, 2012).

21

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

32.5(Billions of yen)

29.5
+10.1%

3.9

FY2010FY2011

Consolidated ordinary revenues

29.5

32.5

+2.9

Change+10.1%

Consolidated ordinary profit

2.9

3.9

+1.0

+36.3%

Consolidated net income

1.5

1.7

+0.1

+10.4%<Non-consolidated>(Billions of yen)

2.9

+36.3%(Billions of yen)<Consolidated>
Consolidated ordinary revenues and profit both increased year on
year, due to Sony Bank’s acquisition of SmartLink network, Inc.
as consolidated
lid d subsidiary,b idi
iin addition
ddi i to S
Sony BBank’sk’ bbusinessi
expansion.
<Non-consolidated>Gross operating profit increased ¥1.8 billion year on year due
mainly to an increases in net interest income.
【Net interest income】
I
Increasedd ¥2.8¥2 8 billi
billion owing
i tto an increasei
iin iinteresttt iincome onloans and a decrease in interest expenses on yen deposits.
【Net other operating income】
Decreased ¥1.3 billion reflecting a decrease in gains on foreignexchange transactions.
Net operating profit increased ¥0.7 billion, owing to the abovementioned increase in gross operating profit,
profit which offset
negative impact of higher general and administrative expenses
led primarily by personal reinforcement of the full scale entry into
credit card business.

FY2010FY2011

Ordinary revenues

29.5

30.0

+0.5

+1.9%

Gross operating profit

16.4

18.3

+1.8

+11.4%Net interest income

13.2

16.1

+2.8

+21.6%Net fees and commissions

(0.1)

0.1

+0.3

－

Net other operating income

3.3

2.0

(1.3)

(39.8%)

General andadministrative expenses

12.6

13.8

+1.2

+9.6%

Ordinary profit

3.3

4.0

+0.6

+19.4%Net income

2.0

2.3

+0.2

+13.9%Net operating profit

3.6

4.3

+0.7

+21.2%

2011.3.3
2011
33
1

2012.3.31

59.9

62.7

+2.8

+4.7%

0.4

1.7

+1.3

314.5%

1,761.8

1,890.5+128.6+7.3%(Billions of yen)
Total net assets
Net unrealized gains
on other securities (net of taxes)
Total assets

ChangeChange from 2011.3.31

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

22

Overview of Performance:
Sony Bank (Non-consolidated) (1)(Reasons for changes)
2011.3.31

2012.3.31

Customer assets

1,755.5

1,864.3+108.7+6.2%

Deposits

1,649.1

1,762.2+113.1+6.9%

Yen

1,289.8

1,390.5+100.6
100.6

+7.8%
7.8%

359.2

371.7

+12.4

+3.5%

106.4

102.0

(4.4)

(4.2%)

722.4

835.5

+113.1+15.7%(Billions of yen)

Foreign currency
Investment trusts
Loans outstanding

Changeg

Mortgage loans

656.0

749.6

+93.5

+14.3%

Others66.4

85.9(*1)+19.5+29.4%

Number of accounts(10 thousands)

85

89

+4

+4.7%

*1
1

Capital adequacy ratio(*2)(domestic criteria)

10.84%

11.58%+0.74pt

Tier 1 ratio

10.41%

9.63%(0.78pt)Yen deposit increased due to an effectof special offer for winter 2011 bonus
season.



Foreign currency deposit increased,
owing to stable demand of foreign
currency based investment backed bycurrency-based
the ongoing yen appreciation
throughout the fiscal year.

Investment trusts decreased reflecting
price.
a decline in reference p

 Loan balance increased due toincreases in mortgage loans andcorporate lending centering on
syndicated loans.

 In October 2011, Sony Bank borrowed
funds(¥10 billion) from SFH as
subordinated loan to reinforce its
financial base.The Tier 1 ratio was also
kept at a highlevel.
.

*1
1. Loans in others include corporate loans of ¥78.7billion.
¥78 7billion*2. Excludes accounts that have been dormant for a long period of time.
*3. 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 10 thousands accounts; percentage change figures are rounded.

23

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

FY201016.4

FY2011

18.3<Reference> Interest Spread(Managerial Accounting Basis)

Change+1.8

Yield on investment+11.5%

Yield on financing

Interest spread

15.1

17.7

+2.6

+17.5%Net fees andcommissions *2 ②

0.8

1.1

+0.3

+40.8%Net other operating
income *3

0.4

(0.6)

(1.0)

-

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

15.9

18.9

+2.9

+18.7%

Operating expenses andother expenses ③

12.8

13.9

+1.1

+8.6%

3.0

4.9

+1.8

+60.9%Net interest income *1 ①

Net operating profit(core profit)= (A)－③(%)+0.08pt●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
income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign
currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustments (*1 and *2), consists of profits
and losses for bond and derivative dealing transactions.
●Core profit
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

Note: 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.

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

24

Operating Performance:
Sony Bank (Non-consolidated) (1)
Deposits
Yen depositspLoansMortgageg g loans

Foreigng currency
y depositsp

Others*I l di corporate*Including
t loansloff ¥78.7¥78 7 billi
billion.

(Billions of yen)(Billions of yen)

835 5
835.5

1,762.2
1,649.1
1,510.0+113.1

85.9*

722.4

371.7

+113.1

1 326 3
1,326.3

586.6
477.0
749.6
1,390.5

Line item amounts are truncated below ¥100 million

25

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

Balance of Securities by Credit Ratings
AAA
BBB

AA
Other

A
Capital Adequacy Ratio

Tier1 Ratio(Billions of yen)
(%)

13.37
940.1

12.09

912.9

880.1
823.1

(27.1)+0.74pt

11.58

10.84

12.88
11.64

10.41 (0.78pt)

9.63<Reference>
In October 2011
Sony Bank borrowed funds (¥10.0 billion) 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 Act, in accordance with FSA Notification No. 19(2006). The capital adequacy ratio newly adopted the special exception of the standard
mentioned above, in accordance with the FSA Notification No. 79 (2008).
Amounts are truncated below ¥100 million.

26

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

Consolidated Financial Forecast
for the Year Ending March 31, 2013
■Consolidated financial forecast for the year ending March 31, 2013
FY2011(Billions of yen)

Consolidated ordinary revenues

FY2012
Forecast

ActualChange1,078.0

1,115.0+3.4％

Banking business

967.5
80.0
32.5

994.5
86.8
34.5

+2.8％
+8.4％
+6.0％

Consolidated ordinary profit

74.6

67.0

(10.2％)

Life insurance businessBankingg business

68.1
2.8
3.4

61.5
2.6
3.6

(9.8％)(9.1％)+3.9％

Consolidated net income

32.8

37.0

+12.8％

Life insurance business
Non-life insurance business

Non-life insurance business<Reference>
Consolidated financial results for the year ended March 31, 2012
FY2011
Original
Forecast((Announcedon
May 20, 2011)(Billions of yen)■Life insurance business
Ordinary revenues for FY2012 are expected to increase year on year. In the current fiscal
year, we do not expect to record an increase in investment income that we posted at theprevious year-end due to the market, although we do anticipate that income frominsurance premiums will increase in line with steady growth of the policy amount in force.
Ordinary profit is expected to decrease, since we do not anticipate the profit recorded in
the previous fiscal year. In the previous fiscal year, Sony Life recorded a profit due tolower insurance claims and other payments relating to the Great East Japan Earthquake
than we had estimated at the end of March 2011, as well as gains on sale of securities,
reflecting the process of shifting bond holdings to ultralong-term bonds. However, we do
not anticipate such gains for FY2012.
■Non-life insurance business
Ordinary revenues for FY2012 are expected to increase year on year, owing to anincrease in net premiums written, primarily for automobile insurance.
Ordinary profit is expected to slightly decrease, mainly because we expect the loss
ratio to stay at a high level and the expense ratio to slightly increase resulting from anincrease in system-related expenses
expenses.
■Banking Business
Ordinary revenues for FY2012 are expected to rise year on year, owing mainly to a
growing balance of loans, especially mortgages.
Ordinary profit is expected to rise, as we anticipate a steady increase in grossoperating profit, driven by business expansion.

<Reasons for the revision of the forecast>
FY2011
Revised Forecast(Announced on
Feb. 2, 2012)

FY2011
Actual- Also in the life insurance business, gains on sale of securities, reflecting theprocess of shifting its bond holdings to ultralong-term bonds, were recorded.

1,022.0

1,047.
0

1,078.0

y profit
Consolidated ordinary

59.0

67.0

74.6

Consolidated net income

29.0

29.0

32.8

Consolidated ordinary
revenues- In the life insurance business, insurance claims and other payments relating
to the Great East Japan Earthquake were lower than we had estimated at theend of March 2011.

<Reason for a change from the revised forecast>- Due to the market recovery for the forth quarter.

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

Dividend Policies

29

Dividend Policies■Basic Policy on Returns to Shareholders and Dividends
SFH places priority on returning profits to shareholders and raising return on equity. Our basic policyiss to pay a stabstableeddividendde d to s
shareholdersa e o de s while
ee
ensuring
su g tthee highg financiala c a sousoundnessd ess needed
eeded togain and maintain the confidence of the customers of the group companies as well as the internal
reserves needed for future business development.

■ Consolidated Net Income and Dividend Result/Forecast
FY2010FY2011

Consolidated net income¥41.7 billion¥32.8 billion

Annual dividend amount¥8.7 billion¥8.7 billion

¥20

¥20

Dividend per share*Amounts are truncated below ¥100 million.

We have not decided the level of the annual cash dividend per share for FY2012. We will consider
g future operatingpg performancepinto account.
this leveｌ,, taking

30Sony Life’s Preliminary MCEV
as of March 31, 2012,
andRisk Amount Based on Economic Value

31

Sony Life’s Preliminary MCEV as of March 31, 2012,
and Risk Amount Based on Economic ValueMCEV results 【Preliminary】

MCEV

2011.3.31

2011.3.31

2012.3.31(Interest swap rate)(JGB yield)(JGB yield)

Change2011.3.31(JGB yield) vs.
(yyield))2012.3.31(JGB

853.6

913.5

1,041.5+128.1

Adjusted net worth

230.3

230.3

409.2

+178.9

Value of existing business

623.3

683.2

632.4

(50.8)

56.8

61.7

65.2

+3.5

Of which, new business value(Billions of yen)

The value of existing business as of March 31, 2012, was down year on year, due mainly to a decline in ultralong-term interest
rates, which offset the positive impact of the addition of new business and a reduction in the corporate tax rate. On the other
hand, adjusted net worth as of March 31, 2012, was up, due primarily to an increase in prices of ultralong-term JGBs held froman ALM perspective. Consequently, MCEV as of March 31, 2012, was up from a year earlier.

 SonyS
Life
Lif usedd JGB yields
i ld as theth risk-free
i kf
rate
t whenh calculatingl l ti MCEV as off March
M h 31,31 2012,2012 rather
th ththan iinteresttt swap rates,twhich were used previously, as JGBs are considered securities with the lowest credit risk. JGBs are also regarded as superior
yen-denominated liabilities in terms of investment availability in keeping with accounting and regulatory constraints andultralong-term liquidity.
 The risk amount based on economic value ((after tax)) as of March 31,, 2012,, was ¥551.5 billion. The risk amount based on

economic value refers to the total amount of Sony Life’s risks, comprehensively examined and including insurance underwriting
risk and market risk. Sony Life ensures financial soundness by keeping these risks within a proper level of MCEV, which is
capital based on economic value.
Note: Measurement of risk based on economic value takes one-year VaR to be 99.5% and is measured using an internal model that refers to the EU
y II ((QIS5)) standard model.
Solvency* Please keep in mind that the validity of these calculations has not been verified by outside specialists. The calculation of MCEV as of March 31, 2012,in accordance with the MCEV principles and verified by outside specialists, is scheduled to be announced on May 25, 2012.
*Amounts are truncated below ¥100 million.

32

Appendix

33

Negative impact from the Great East Japan
Earthquake (Appendix)Positive impact on FY11 consolidated ordinary
profit of the Great East Japan Earthquake: ¥3.9 billion(Principal Impact on Each Business)
Life Insurance Business・ Profit recorded as insurance claims and other payments relating to the Great East Japan Earthquake werelower than we had estimated as of the end of the previous fiscal year: ¥3.9 billion
Non-life Insurance Business・ Temporally slowdown in the sales of automobile insurance policies in April has recovered from May onward
due to the brisk sales. The sales target of the new policies are back on track from the original projection
Bankingg Business・ Loan losses on mortgage loans in stricken region were limited to the operating results･･･････････････････････････････････････・・・・・・・・・・・・・・･･････････････････････････････・・・・・・・・・・・・・・・・



Negative impact on FY10 consolidated ordinary
profitpo toof ttheeG
Great
eat East
ast Japa
Japan Earthquakea t qua e : ¥5.5
55bbilliono(Principal Impact on Each Business)
Life Insurance Business・ Insurance claims and other payments (including provision for reserve for outstanding claims):¥5.4 billion
Non-life Insurance Business・ Mainstay automobile insurance exempt from earthquakes and tsunamis
Banking Business・ Increased allowance for mortgage loans in stricken region. *Amounts are truncated below ¥100 million

34

Recent Topics 1
AEGON SONY LIFE INSURANCE Sales Update
Launch of sales：December 1, 2009
Common stock：¥20
stock ¥20 billion (including capital surplus of ¥10 billion)
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products: Variable Individual Annuity (2 types, 3 products)
Sales Channels: Lifeplanner sales employees and affiliated Banks (8*)(8 ) As of May 18
18, 2012
Financial Highlights for FY2011:
Number of new policies: 2,498, New policy amount: ¥17.5 billion(Number of policies in force: 3,669 policies, Policy amount in force: ¥30.4 billion As of March 31, 2012)*Amounts are truncated below ¥100 million.

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for 25% of the balance ofmortgage loans as of March 31, 2012
Sony Life accounts for 27% of the amount of
new mortgage loans for FY2011
Sony Life started handling banking agency business in January 2008
2008.
*Sony

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 5% of new automobile policies for FY2011
g automobile insurance in Mayy 2001.
* Sonyy Life started handling“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

35

Recent Topics 2<Highlights for FY2011>
Apri.1, 2011

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

Apr. 28, 2011

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

May 1, 2011

Sony Bank entered credit card business; began issuing “Sony Card”

May 2, 2011

Sony Life began sales of new income protection insurance to cover three major diseases (Type II)

May 16, 2011

Sony Bank began offering Brazilian real for foreign currency deposits

July 1, 2011

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

Aug. 3, 2011

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

Aug. 8, 2011

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

Aug. 22, 2011

Sony Bank opened representative office in Sydney

Aug. 31, 2011

Sony Assurance became the first company to receive Eco Mark Certification in automobile insurance

Oct. 25, 2011

Sony Financial Holdings issued No. 1 unsecured corporate bonds

Nov. 2, 2011

Sonyy Life began
g offeringg new pproduct: Cancer Drugg Therapy
py RiderMar. 1, 2012

Sony Assurance acquired a part of shares and share options in Anicom Holdings, Inc.

36

Sony Life: FY12 Basic Investment Policy＜Basic Policy＞
 Continue to invest in ultralongultralong-term
term bonds from the ALM perspective,

with the aim of stable growth of MCEV
 Carefully Invest in risk assets

Results for FY2011 / YoY change
36 6
36.6
(21 6)(21.6)
4,417.8+667.8
26.8
+0.3
62 3
62.3
+14 0
+14.0
79.9
(1.4)

(Billions of yen)Japanese stocks
JGBs, other bonds
Foreign stocks
Foreign bonds
Real estates

Plans for FY2012
Flat
Increase
Flat
Flat
Flat

*Amounts are truncated below ¥100 million.

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)
2011.3.31

2011.6.30

2011.9.30

2011.12.31

2012.3.31

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

－

－

－

－

－

－

－

－

－

Note: Line item amounts are truncated below ¥100 million.

38

Sony Life’s Breakdown of Net Assets
Net Assets on BS, Real Net Assets and Solvency Margin①Net Assets(B/S)(Billions of yen)

②Real
Net Assets③Solvency
Margin2011.3.31 2012.3.31 2011.3.31 2012.3.31 2011.3.31 2012.3.31

Total shareholders’ equity

209.8

232.2

209.8

232.2

200.7

223.1

Net unrealized gains on other securities, net of taxes

7.0
－
(1.4)
－
－
－

34.0
－
(1.3)
－
－
－

7.0
－
(1.4)
16.7
51.5
－

34.0
－
(1.3)
25.3
55.3
－

－
20.8
－
16.7
51.5
0.0

－
54.6
－
25.3
55.3
0.0

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

Net unrealized gains on real estate

－

－

1.9

0.6

1.0

(0.1)

Excess amount of policy reserves based on Zillmer method

－

－

334.2

350.4

270.2

304.4

Unallotted portion of reserve for policyholders' dividends

－
－
－
－
－

－
－
－
－
－

1.1
－
－
(22.1)
8.0

0.7
－
－
155.8
18.3

1.1
－
63.3
－
－

0.7
－
58.7
－
－

215.3

264.8

606.9

871.4

625.7

722.1

Future profits
Deferred tax assets
Unrealized gains (losses) on held-to-maturity bonds
Deferred tax liabilities for available-for-sale securities
Total

Notes
③After estimated distributed
income deducted③Before tax x 90%②Before tax（After revaluation）③Before tax(Before revaluation) X85%
(X100% if llosses))
After excluding nonincludible amount②Before 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 ¥715.5 billion as of March 31, 2012.

Amounts are truncated below ¥100 million.

39

Sony Life: New Policy Amount (quarterly trend)
New Policy Amount (quarterly trend)
New Policy Amount(Billions of yen)Amounts are truncated below ¥100 million.

Sony Life: Annualized Premiums from
New Policies (quartery trend)
Annualized Premiums from New Policies (quarterly trend)
Annualized Premiums from New Policies

Of which, Third-sector insurance(Billions of yen)Amounts are truncated below ¥100 million.

41

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

42