Consolidated Financial Summary
for the nine months ended December 31, 2008
February 12, 2009
Company name:Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/index en.html/)
Stock exchange listings: Tokyo Stock Exchange (code number: 8729)
Representative:
Teruhisa Tokunaka, President and Representative Director
For inquiry:
Masaaki Konoo, General Manager – Corporate Communications & Investor Relations Dept.
(discarding fractional amounts of less than 1 million yen)

1.

Consolidated financial results for the nine months ended December 31, 2008
(1) Operating results
Ordinary Revenues
Ordinary Profit
millions of yen

For the nine months ended
December 31, 2008
For the nine months ended
December 31, 2007%changemillions of yen

Net Income%changemillions of yen%change

636,626( +5.0 )32,910(-12.9)20,574( -9.5 )606,192( +10.0 )37,803( +43.9 )22,740( +41.0 )Net Income per ShareNet Income per Share(Fully Diluted)

yen

yen

For the nine months ended
December 31, 2008
For the nine months ended
December 31, 2007

9,459.57-

10,713.48-(2) Financial conditions
Total Assets

Total Net Assets

Net Assets Ratio

Net Assets per Share%yenmillions of yen

millions of yen

As of December 31, 2008

5,262,289

208,499

4.0

95,861.97

As of March 31, 2008

4,977,450

261,627

5.3

120,288.66

Notes: 1. Stockholders’ equity:

As of December 31, 2008:
As of March 31, 2008:¥ 208,499 million¥ 261,627 million

2. Net assets ratio is computed by dividing the amount of total net assets at the end of the fiscal period.

2. Dividends
Fiscal year

Interim dividend

Dividend per Share
Annual dividendyen

For the year ended
March 31, 2008
For the year ending
March 31, 2009
For the year ending
March 31, 2009(projection)

Total

yen

-

3,000.00

yen

3,000.00

3,000.00
3,000.00

3. Forecast of consolidated financial results for the year ending March 31, 2009
(Percentage figures represent changes from the results of the previous fiscal year)

Ordinary Revenues

Ordinary Profit

Net Income

millions of yen %change millions of yen %change millions of yen %change

For the year ending
March 31, 2009

854,000+3.9

37,0001-16.9

21,000-13.4

Net Income per
Share
yen

9,655.17

4. Other Information(1) Changes in significant subsidiaries during the fiscal period (changes in specified subsidiaries accompanying changes inscope of consolidation): None
(2) Simplified accounting methods and accounting methods used specifically for quarterly consolidated financial
statements: Yes(Note) Please refer to (2) of “5. Other Information” on page 8, for details.
(3) Changes in accounting policies, procedures and presentation rules applied in the preparation of the quarterly
consolidated financial statements: Yes(Note) Please refer to (3) of “5. Other Information” on page 9, for details.
(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2008:
2,175,000 shares
As of March 31, 2008:
2,175,000 shares(b) Number of treasury shares
As of December 31, 2008:- shares
As of March 31, 2008:- shares(c) Weighted-average number of shares
For the nine months ended December 31, 2008:
2,175,000 shares
For the nine months ended December 31, 2007:
2,122,636 shares

2

Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
1. Analysis of Operating Performance
During the nine months ended December 31, 2008 (April 1, 2008 through December 31, 2008), consolidated
ordinary revenues grew 5.0% compared with the same period of the previous fiscal year, to ¥636.6 billion,
owing to increases in ordinary revenues from all the businesses: life insurance, non-life insurance and banking.
In the life insurance business, ordinary revenues grew 3.4% year on year, to ¥565.8 billion, owing to higher
income from insurance premiums associated with a steady increase in policy amount in force. In the non-life
insurance business, ordinary revenues rose 10.7% year on year, to ¥46.1 billion, due to higher net premiums
written, resulting from strong sales of automobile insurance policies. In the banking business, ordinary revenues
grew 40.8% year on year, to ¥25.5 billion, as a higher balance of investment assets in line with the bank’sbusiness expansion led to an increase mainly in interest income.
Consolidated ordinary expenses increased 6.2% compared with the same period of the previous fiscal year, to¥603.7 billion, owing to increases in ordinary expenses from all the businesses.
In the life insurance business, ordinary expenses increased 4.1% compared with the same period of the previous
fiscal year, to ¥535.4 billion, due to increased investment expenses associated with a significant decline inJapanese stock market prices. In the non-life insurance business, ordinary expenses grew 15.6% year on year, to¥44.6 billion, owing mainly to an increase in the amount of claims paid, led by those resulting from natural
disasters. In the banking business, higher interest expenses, increased general and administrative expenses, mostly
system-related expenses, and amortization of goodwill pushed up ordinary expenses 50.9% compared with thesame period of the previous fiscal year, to ¥24.5 billion.
As a result, consolidated ordinary profit decreased 12.9% compared with the same period of the previous fiscal
year, to ¥32.9 billion. Broken down by business, ordinary profit from the life insurance business declined 7.3%
year on year, to ¥30.3 billion. Ordinary profit from the non-life insurance business decreased 51.9% year on year,to ¥1.4 billion. Ordinary profit from the banking business dropped 46.7% year on year, to ¥0.9 billion.
Extraordinary gains (net) of ¥4.1 billion were recorded, as extraordinary gains of ¥8.0 billion were partially
offset by extraordinary losses of ¥3.8 billion. Extraordinary gains were recorded primarily due to a partial reversalof reserve for price fluctuations in the life insurance business. Extraordinary losses were recorded, owing mainly
to losses on disposal of fixed assets in the non-life insurance business.
After accounting for extraordinary gains and losses, the provision for reserve for policyholders’ dividends, andincome taxes, net income decreased 9.5% compared with the same period of the previous fiscal year, to ¥20.5
billion.

3

2. Segment Information by Business
Ordinary Revenues

Life insurance business
Non-life insurance
business
Banking business
Subtotal
Corporate andeliminations
Consolidated(Millions of yen)
For the nine months ended For the nine months ended
Change (%)
December 31, 2007
December 31, 2008
547,123565,821+3.4
41,66846,139+10.7

18,123606,915

25,524
637,485

+40.8
+5.0

(722)

(859)

－

606,192

636,626+5.0

Ordinary Profit

Life insurance business
Non-life insurance
business
Banking business
Subtotal
Corporate andeliminations
Consolidated(Millions of yen)
For the nine months ended For the nine months ended
Change (%)
December 31, 2007
December 31, 2008
32,76530,376
-7.3
3,028

1,456

-51.9

1,861
37,656991
32,824

-46.7
-12.8

147

85

-42.1

37,80332,910-12.9

2. Qualitative Information on Consolidated Financial Position
Assets, Liabilities and Net Assets
As of December 31, 2008, total assets amounted to ¥5,262.2 billion, up 5.7% from March 31, 2008. As for major
components of assets, securities, mostly Japanese government bonds, amounted to ¥3,295.7 billion, up 12.5%
from March 31, 2008 monetary trusts amounted to ¥785.8 billion, down 12.3% from March 31, 2008 and loans
amounted to ¥549.4 billion, up 20.6% from March 31, 2008.
Total liabilities amounted to ¥5,053.7 billion as of December 31, 2008, up 7.2% from March 31, 2008. As for
major components of liabilities, policy reserve and others amounted to ¥3,617.8 billion, up 4.7% from March 31,
2008, and deposits amounted to ¥1,338.1 billion, up 17.0% from March 31, 2008.
Total net assets amounted to ¥208.4 billion as of December 31, 2008, down 20.3% from March 31, 2008. Due toa decrease in the fair market value of securities held, associated with a significant decline in Japanese stock market
prices, net unrealized gains on other securities, net of taxes, declined ¥64.6 billion from March 31, 2008, to ¥10.2
billion.

4

3. Qualitative Information on Consolidated Performance Forecasts
Sony Financial Holdings (“SFH”) revised its consolidated financial results forecast for the year ending March 31,
2009 (April 1, 2008 through March 31, 2009), from those announced on May 14, 2008, as stated below.
Considering factors including the actual results of consolidated ordinary revenues from the life insurance businessfor the nine months ended December 31, 2008, were lower than the SFH’s formerly announced forecast, despite an
year-on-year increase, SFH made a downward revision to its forecast on consolidated ordinary revenues. The
forecast on consolidated ordinary profit and net income are unchanged.
<Consolidated financial results forecast>
For the full year
Updated forecast
for the year ending March 31, 2009
Formerlly announced forecast
for the year ending March 31, 2009
(Reference)
Actual results for the year ended March 31,
2008

Ordinary revenues

Ordinary profit(Billions of yen)
Net income

854.0

37.0

21.0

884.0

37.0

21.0

822.1

44.5

24.2

Note: As described below, forecasts of ordinary profit from the life insurance and the banking businesses for the year ending
March 31, 2009, were changed. However, the forecast of SFH’s consolidated ordinary profit remain unchanged since theimpact of these changes was not considered significant on a consolidated basis.

(Reference)
Forecasts of ordinary revenues and ordinary profit from each business for the year ending March 31, 2009, are as follows.
<Life insurance business>
For the nine months ended December 31, 2008, the actual results of income from insurance premiums increased
compared with the same period of the previous fiscal year. However, compared with the formerly announced
forecast, single-payment insurance premiums and others were lower, and gains on separate accounts decreased due
to a drop in Japanese stock market prices, resulting in the likelihood of ordinary revenues falling behind the formerly
announced forecast figures. In addition, due to the partial reversal of contingency reserve in the third quarter ended
December 31, 2008, ordinary profit is expected to exceed the formerly announced forecast. Considering these factors,
SFH revised the forecasts of ordinary revenues and ordinary profit from the life insurance business for the year
ending March 31, 2009, from those originally announced on May 16, 2008, as stated below.
(Billions of yen)
Ordinary
Ordinary
revenues
profit
For the full year
Updated forecast
761.0
36.0
for the year ending March 31, 2009
Formerlly announced forecast
793.0
34.0
for the year ending March 31, 2009
(Reference)
741.3
39.0
Actual results for the year ended March 31, 2008

5

<Non-life insurance business>
Forecasts of ordinary revenues and ordinary profit from the non-life insurance business are unchanged from thoseannounced on November 17, 2008.
(Billions of yen)
Ordinary
Ordinary profit
revenues
For the full year
Forecast for the year ending March 31, 2009
60.7
2.1
(Reference)
55.6
2.8
Actual results for the year ended March 31, 2008
<Banking business>
Considering the impact of a drop in the fair market value of securities held and other factors associated with therecent changes in the financial market environment, SFH revised its forecasts of ordinary revenues and ordinary
profit (losses) for the banking business for the year ending March 31, 2009, from those announced on November 17,
2008, as stated below.
(Billions of yen)
Ordinary
Ordinary profit
revenues(losses)
For the full year
Updated forecast for the year ending March 31,
32.0
(0.4)
2009
Formerly announced forecast
33.5
1.4
for the year ending March 31, 2009
(Reference)
25.9
2.4
Actual results for the year ended March 31, 2008

The above-mentioned forecast was made based on information currently available to us.
Our consolidated forecast for the year ending March 31, 2009, does not incorporate the potential impact ofmarket fluctuations on and after January 1, 2009, as it is difficult to forecast financial market conditions as ofMarch 31, 2009.

4. Information Concerning Significant Subsidiaries
Below, we describe the operating performance, on a non-consolidated basis, for the nine months ended December 31,
2008 of SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. (SonyAssurance) and Sony Bank Inc. (Sony Bank). Sony Life, Sony Assurance and Sony Bank each separately announce
their own results, which summary information in English is available on SFH’s website.

■ Sony Life (Non-Consolidated)
On a non-consolidated basis, Sony Life’s ordinary revenues increased 3.4% from the same period of the previous
fiscal year, to ¥565.5 billion, owing to higher income from insurance premiums, associated with a steady increasein policy amount in force. Despite the steady growth of income from insurance premiums, in line with the growing
policy amount in force, ordinary profit decreased 8.0% year on year, to ¥30.2 billion, due to the deterioration ofgains and losses from investments, associated with a significant fall in Japanese stock market prices. Contingency
reserve was partially reversed in response to lower investment yields associated with financial market deterioration.
Net income increased 22.0% year on year, to ¥22.0 billion, as a result of the partial reversal of reserve for pricefluctuations.
Core profit rose 13.8% year on year, to ¥22.6 billion, as a result of an increase mainly in income from insurance
premiums and interest and dividends income.
Income from insurance premiums grew 2.1% from the same period of the previous fiscal year, to ¥489.6 billion,
associated with a higher policy amount in force. Insurance claims and other payments amounted to ¥198.3 billion,6

up 10.5% year on year. Investment income increased 13.3% year on year, to ¥72.2 billion, as a higher balance of
securities held, mainly Japanese government bonds, and other factors led to a rise in interest and dividends andother. Investment expenses expanded 373.9% year on year, to ¥104.1 billion, resulting from deteriorations in gains
and losses from investments in separate accounts as well as impairment losses on securities in the general account.
As a result, losses from investment, net, of ¥31.9 billion were recorded as the sum of general and separate accounts.
Operating expenses rose 0.5% year on year, to ¥69.7 billion.
Policy amount in force for the total of individual life insurance and individual annuities grew steadily, to¥32,406.6 billion as of December 31, 2008, up 2.9% from March 31, 2008, and up 3.7% from December 31, 2007.
The lapse and surrender rate* for the total of individual life insurance and individual annuities rose 0.34 percentage
point from the same period of the previous fiscal year, to 4.95%. Annualized premiums from total policies as ofDecember 31, 2008, were up 3.0% from March 31, 2008, and up 4.1% from December 31, 2007, totaling ¥546.1
billion. Of this amount, the figure for third-sector products was up 2.6% from March 31, 2008, and up 3.3% from
December 31, 2007, to ¥126.0 billion.
New policy amount for the total of individual life insurance and individual annuities increased 2.8% from thesame period of the previous fiscal year, to ¥2,993.6 billion. Annualized premiums from new policies decreased
1.2% year on year, to ¥44.7 billion. Of this amount, the figure for third-sector products was ¥10.3 billion, up 0.3%
year on year.
Net unrealized gains on securities** dropped 1.8% from March 31, 2008, to ¥125.5 billion. Net unrealized gains
on other securities, net of taxes, amounted to ¥24.6 billion, down ¥58.0 billion from March 31, 2008.
As of December 31, 2008, Sony Life’s solvency margin ratio was 1,995.0%, compared with 1,747.9% as ofMarch 31, 2008.
* The lapse and surrender rate is calculated without offsetting policies that are reinstated.
**Net unrealized gains/losses on securities are calculated as the difference between the carrying value before mark-to-market and the fair market value
for securities with market value, other than trading-purpose securities. (The amount includes “monetary trusts,” but excludes trading-purpose
securities.)■ Sony AssuranceSony Assurance posted a 10.7% increase in ordinary revenues compared with the same period of the previous
fiscal year, to ¥46.1 billion, primarily due to strong sales of its mainstay automobile insurance, which raised net
premiums written. Although underwriting income increased, ordinary profit decreased 51.9% year on year, to ¥1.4
billion, owing mainly to an increased amount of claims paid, led by those resulting from natural disasters. Losses
on disposal of fixed assets were recorded as extraordinary losses in the third quarter ended December 31, 2008,
resulting in a net loss of ¥1.9 billion.
In terms of insurance underwriting performance, owing mainly to an increased number of automobile insurance
policies in force, direct premiums written and net premiums written grew 10.9% and 10.7%, year on year, to ¥45.3
billion and ¥45.5 billion, respectively. In addition to the increased number of policies in force, natural disasters
influenced net losses paid, causing a 15.1% year-on-year increase, to ¥22.0 billion. The net loss ratio rose 2.1
percentage points, compared with the same period of the previous fiscal year, to 54.4%, owing mainly to increases
in net losses paid and higher loss adjustment expenses. The net expense ratio rose 0.8 percentage point year on
year, to 25.9%. The combined ratio (the sum of the net loss ratio and the net expense ratio) rose 2.9 percentage
points year on year, to 80.3%. As a result, underwriting profits declined 58.7% year on year, to ¥1.0 billion. An
absence of the ¥0.5 billion in positive effects recorded in the same period of the previous fiscal year, when themethod of calculating reserves for outstanding claims was changed, also influenced the year-on-year decrease inunderwriting profit.
For the purpose of enhancing system and operational efficiency, Sony Assurance began developing new
systems in the fiscal year ended March 31, 2007. However, the company subsequently decided to suspend thisdevelopment and to overhaul its development policy. Accordingly, some software assets that were previously
recorded as intangible fixed assets (software) and for which future use is uncertain were disposed of, resulting inlosses on disposal of fixed assets of ¥3.7 billion, which were recorded as extraordinary losses.

7

■ Sony Bank (Non-Consolidated)
On a non-consolidated basis, Sony Bank’s ordinary revenues increased 40.7% compared with the same period of
the previous fiscal year, to ¥25.5 billion, due mainly to an increase in interest income, as the balance of investment
assets rose in line with business expansion. Although gross operating profit increased, ordinary profit decreased
17.7% compared with the same period of the previous fiscal year, to ¥1.7 billion, as the general and administrative
expenses, mostly system-related expenses, expanded. Net income dropped to ¥1.0 billion, down 60.4% comparedwith the same period of the previous fiscal year, reflecting the decrease in ordinary profit and due to an absence ofdeferred tax assets that were topped up in the nine months ended December 31, 2007.
Gross operating profit increased 18.4% from the same period of the previous fiscal year, to ¥9.4 billion, ledprimarily by an increase in net other operating income. With respect to the breakdown of gross operating profit, net
interest income rose 0.5% year on year, to ¥3.8 billion, due to increased interest and dividends on securities. Net
fees and commissions declined 7.9% year on year, to ¥0.2 billion, owing primarily to a decrease in
securities-related commissions. Net other operating income rose 38.6% from the same period of the previous fiscal
year, to ¥5.2 billion, as a result of increased income from foreign exchange transactions derived from theinvestment of foreign currency deposits.
General and administrative expenses expanded 31.0% year on year, to ¥7.6 billion, due mainly to an increase insystem-related expenses.
As of December 31, 2008, customer assets (the sum of deposits and investment trusts) grew ¥170.5 billion, or
13.7%, from March 31, 2008, to ¥1,417.9 billion, primarily due to an increase in yen deposits. As for the
breakdown of customer assets as of December 31, 2008, deposits amounted to ¥1,339.2 billion, up ¥194.8 billion,
or 17.0%, from March 31, 2008. Investment trusts were ¥78.7 billion, down ¥24.2 billion, or 23.5% from March 31,
2008. Loans expanded steadily to ¥431.6 billion, up ¥84.5 billion, or 24.4%, from March 31, 2008. As of December
31, 2008, the number of accounts was up 91 thousand from March 31, 2008, to 701 thousand accounts.
Net unrealized losses on other securities, net of taxes, an item in net assets, totaled ¥15.2 billion, deteriorated by¥6.2 billion from March 31, 2008, owing primarily to a decline in prices such as Japanese corporate bonds.
To ensure a sound financial base, Sony Bank’s capital was raised by allocating its shares to SFH. In the six
months ended September 30, 2008, ¥6.0 billion in capital was injected, and another ¥6.0 billion injection was madein the three months ended December 31, 2008. As a result, Sony Bank’s common stock and capital surplus as ofDecember 31, 2008, were ¥31.0 billion and ¥21.0 billion, respectively.
As of December 31, 2008, Sony Bank’s non-consolidated capital adequacy ratio* (domestic criteria) was
14.38%, compared with 9.15% as of March 31, 2008.
* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard stipulated by Article 14-2 of the Banking Law of Japan,
in accordance with the Financial Services Agency of Japan (“FSA”) public ministerial announcement No. 19 of 2006. The capital adequacy ratio asof December 31, 2008, newly adopted the special exception of the standard mentioned above, in accordance with the FSA public ministerial
announcement No. 79 of 2008.

5.

Other Information(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying
changes in scope of consolidation)
Not applicable.
(2) Simplified accounting methods and accounting methods used specifically for quarterly consolidated financial
statements(Simplified accounting methods)i) Reserve for possible loan losses
At a certain consolidated subsidiary, except for loans to borrowers subject to bankruptcy, court-guided
rehabilitation or similar legal or formal proceedings for which the subsidiary provides a specific reserve, thereserve for possible loan losses are calculated based on the historical loan loss ratio used for the six months ended
September 30, 20088ii) Collectability of deferred tax assets
At a certain consolidated subsidiary, the collectability of deferred tax assets is determined based on the earnings
forecasts as of September 30, 2008.
(Accounting methods used specifically for quarterly consolidated financial statements)
Not applicable(3) Changes in accounting policies, procedures and presentation rules applied in the preparation of the quarterly
consolidated financial statements
Quarterly financial statements
Statement No. 12 “Accounting Standard for Quarterly Financial Statements” of The Accounting Standard Board ofJapan (“ASBJ”) and ASBJ Guidance No. 14 “Implementation Guidance for Accounting Standard for Quarterly
Financial Statements” are applicable from this fiscal year. SFH adopted the guidance and prepared its quarterly
financial statements in accordance with the “Regulations concerning the Terminology, Forms and Preparation
Methods of the Quarterly Consolidated Financial Statements.”
Reclassification of debt securities
As the Practical Issue Task Force No.26 “Tentative Solution on Reclassification of Debt Securities” (December 5,2008) is applicable from a date of its publication until March 31, 2010, a domestic life insurance subsidiary has
adopted this practical solution. A part of “Securities” was reclassified from “available for sale securities” to “heldto maturity securities”. The adoption of the practical solution resulted in a decrease of ¥498 million in “Securities,”
an increase of ¥180 million in “Deferred tax assets,” and a decrease of ¥318 million in “Net unrealized gains onother securities, net of taxes” as of December 31, 2008.
Lease transactions
Finance leases that do not transfer ownership of the leased property to the lessee used to be accounted for as
operating leases. As the Accounting Standard Board of Japan (“ASBJ”) Statement No.13 “Accounting Standard forLease Transactions” (March 30, 2007) and ASBJ Guidance No.16 “Guidance for Accounting Standard for Lease
Transactions” (March 30, 2007) became effective for fiscal years beginning after April 1, 2008, SFH has appliedthem starting from the nine months ended December 31, 2008. The impact of this change to SFH’s consolidated
ordinary profit and net income before taxes is not material.
(Additional information)
Evaluation of securities
Floating-rate Japanese government bonds that are included in “securities” were previously evaluated based on theirfair market values. As the Practical Issue Task Force No. 25 “Practical Solution on Measurement of Fair Value of
Financial Assets” (October 28, 2008) was published, a domestic banking subsidiary examined its accounting
treatment of the floating-rate Japanese government bonds it held and determined that the fair market values could
not be deemed fair values. Therefore, SFH evaluated the floating-rate Japanese government bonds based onreasonably estimated amounts starting in the quarter ended December 31, 2008. This change resulted in an increaseof ¥3,540 million in “Securities” and an increase of ¥3,540 million in “Net unrealized gains on other securities, netof taxes.” Reasonably estimated amounts were calculated as of December 31, 2008, using the Constant Maturity
Treasury (“CMT”) model. The interest rate used in the CMT model as a primary parameter is the forward rate ofJapanese government bonds. The discount rate used in the model is the rate of the yield curve of Japanese
government bonds based on the consideration of a certain liquidity risk.
Reversal of contingency reserve
Pursuant to provisions of the Insurance Business Law, a domestic life insurance subsidiary reversed its
Contingency reserve of ¥19,000 million to compensate for the loss incurred due to the negative spread for the ninemonths ended December 31, 2008.
Reversal of reserve for price fluctuations
Pursuant to provisions of the Insurance Business Law, a domestic life insurance subsidiary reversed its Reserve forprice fluctuations of ¥8,773 million to compensate for the loss incurred due to trading or devaluation of the equity
investment and the fluctuation of foreign exchange for the nine months ended December 31, 2008.

9

Consolidated Financial Statements
1. Consolidated Balance Sheets(Yen in millions)
As of December 31, 2008

As of March 31, 2008

Assets:Cash and due from banks
Call loans and bills bought
Commercial paper and other debt purchased
Monetary trusts
Securities
Loans
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersDue from reinsurers
Foreign exchanges
Other assets
Deferred tax assets
Reserve for possible loan losses

68,812326,962
10,641
785,854
3,295,775
549,477
83,73016,8762,130
14,746206
6,751
87,70230,026(529)

60,058424,868
895,672
2,930,441
455,763
84,451
16,412
2,505
13,906
256
1,683
101,229
6,937
(327)

Total Assets

5,262,289

4,977,450

Liabilities:
Policy reserve and others
Reserve for outstanding claims
Policy reserve
Reserve for policyholders’ dividends
Due to agencies
Due to reinsurers
Deposits
Call money and bills soldBorrowed money
Foreign exchanges
Other liabilities
Reserve for employees’ bonuses
Reserve for employees’ retirement benefits
Reserve for directors’ retirement benefits
Reserve for price fluctuations and others
Deferred tax liabilities
Deferred tax liabilities on land revaluation

3,617,872
34,557
3,576,972
6,341
1,031
697
1,338,116
10,0002,000
52,6681,241
13,063294
16,0970706

3,454,167
31,653
3,418,006
4,506
1,308
926
1,143,476
10,000062,5302,240
11,920252
24,136
4,156
706

Total Liabilities

5,053,789

4,715,82210

(Yen in millions)
As of December 31, 2008

As of March 31, 2008

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

19,900195,277(12,399)
202,778
10,277(3,187)(1,475)106
5,721

19,900195,277(26,417)
188,759
74,902(1,345)(1,475)786
72,868

Total Net Assets

208,499

261,627

5,262,289

4,977,450

Total Liabilities and Net Assets

112. Consolidated Statements of Income(Yen in millions)
For the nine months ended
December 31, 2007

For the nine months ended
December 31, 2008

Ordinary Revenues

606,192

636,626

Ordinary Revenues from the Life Insurance Business:

546,457

565,023

Income from insurance premiums

479,429489,374

Investment income

63,871

72,477

Interest income and dividends

35,18841,007

Income from monetary trusts, net

12,927

3,954

Income from trading securities, net
Gains on sale of securities
Other ordinary income
Ordinary Revenues from the Non-life Insurance Business:
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income
Interest income and dividends

538

1,084

14,99820,895

3,156

3,170

41,646

46,12841,20045,60941,17745,580

23

28

431

505

433

514

Gains on sale of securities

21

18

Transfer to interest and dividends on deposits of premiums

(23)

(28)

14

13

18,08825,474

12,127

16,319Interest income on loans

5,034

6,674

Interest income and dividends on securities

5,171

7,563

Fees and commissions

1,391

1,598

Other operating income

4,558

7,440

3,835

6,260

10

115

Ordinary Expenses

568,389

603,716

Ordinary Expenses from the Life Insurance Business:

514,186

535,319

179,446
43,138
4,111
21,644
107,636
1,543

198,335
45,356
4,570
24,642
120,680
1,458

235,789
235,778
10
21,982
10
938
2,862
8,936
69,158154,019
1,332
152,655
31
103,961
32
12,232
17,34066,692
69,672

7,809

9,330

Other ordinary income
Ordinary Revenues from the Banking Business:
Interest income

Gains on foreign exchange transactions
Other ordinary income

Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other payments
Provision for policy reserve and others
Provision for reserve for outstanding claims
Provision for policy reserve
Interest portion of reserve for policyholders’ dividends
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on separate accounts, net
Operating expenses
Other ordinary expenses

12For the nine months ended
December 31, 2007
38,334

Ordinary Expenses from the Non-life Insurance Business:
Underwriting expenses

For the nine months ended
December 31, 2008
44,351

28,674
19,185
2,346
436
1,518
5,187
5

33,23322,092
2,702
508
1,577
6,352
116

Losses on sale of securities

3

28

Devaluation losses on securities

-

86

9,639

10,99614

515,86724,045

8,265
7,772
752

12,43911,805
910

740

2,149

5,989

8,342

120

201

37,80332,910

2
0

8,041
0

Reversal of reserve for price fluctuations

-

8,040

Others

1

-

2,001
59

3,882
3,865

125

0

1,816

-

-

16

Provision for Reserve for Policyholders’ Dividends

1,296

2,469

Income Before Income Taxes

34,507

34,599

Income Taxes

11,487

14,024- Current

14,334

8,256- Deferred(2,846)

5,768

(279)

-

22,74020,574

Net losses paid
Loss adjustment expenses
Net commission and brokerage fees
Provision for reserve for outstanding claims
Provision for underwriting reserve
Investment expenses

Operating, general and administrative expenses
Other ordinary expenses
Ordinary Expenses from the Banking Business:
Interest expenses
Interest expenses on deposits
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on disposal of fixed assets

Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses
Provision for reserve for price fluctuations
OthersMinority Interests
Net Income133. Segment Information
For the nine months ended December 31, 2007
Life insurance
business
Ordinary revenues:
External customers
Intersegment
Total
Ordinary profit

546,457(Yen in millions)Non-life
insurancebusiness

Bankingbusiness

41,64618,088

Total

Elimination

Consolidated

606,192-

606,192

666

21

35

722

(722)

-

547,123

41,66818,123606,915(722)

606,192

32,765

3,028

1,861

37,656147

37,803For the nine months ended December 31, 2008
Life insurance
business
Ordinary revenues:
External customers
Intersegment
Total
Ordinary profit

565,023798
565,82130,376(Yen in millions)Non-life
insurancebusiness

Bankingbusiness

46,128
10
46,1391,456

25,47450
25,524991

Total

Elimination

Consolidated

(859)
(859)
85

636,626
636,626
32,910636,626
859
637,485
32,824

4. Per Share Information
Net income per share is calculated based on the weighted-average number of shares of common stock outstanding during
the period. For the nine months ended December 31, 2007 and 2008, net income per share was ¥10,713.48 and ¥9,459.57,
respectively. There were no potential dilutive securities. Net assets per share, calculated based on the number of shares ofcommon stock outstanding as of March 31, 2008 and Decemeber 31, 2008, were ¥120,288.66 and ¥95,861.97,
respectively.
The basis for this calculation for the nine months ended December 31, 2007 and 2008 is net income of ¥22,740 millionand ¥20,574 million, the entire amount of which is applicable to common shares. The weighted-average number of shares
outstanding for the nine months ended December 31, 2007 and 2008 were 2,122,636 shares and 2,175,000 shares,
respectively.
SFH’s consolidated results* are prepared in accordance with accounting principles and practices generally accepted in Japan. As
such, these figures differ in significant respects from financial information reported by SFH’s parent company, Sony
Corporation, which prepares its financial statements in accordance with accounting principles and practices generally acceptedin the United States.
* The scope of consolidation for SFH’s consolidated results included Sony Financial Holdings Inc., Sony Life Insurance Co., Ltd., Sony Assurance Inc., Sony
Bank Inc., Sony Life Insurance (Philippines) Corporation, and Sony Bank Securities Inc. The scope of consolidation for SFH’s consolidated results for the ninemonths ended December 31, 2008 also included AEGON Sony Life Planning Co., Ltd. as an affiliated company accounted for under the equity method.

On January 29, 2009, Sony Corporation announced its consolidated financial results for the third quarter (or three months)
ended December 31, 2008. 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 thescope of Sony Group’s Financial Services segment, please refer to the January 29, 2009, news release from Sony Corporation.
Forward-looking statements may include—but are not limited to—statements using words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,”“predict,” “possibility” and similar words that describe future operating activities, financial performance, events or conditions. Forward-looking statements,
whether spoken or written, are based on judgments made by the management of the SFH Group based on information that is currently available to it. As such,forward-looking statements are subject to various risks and uncertainties, and actual results may vary substantially from those expressed or implied inforward-looking statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements. The SFH Group disclaims any
obligation to revise forward-looking statements in light of new information, future events or other findings.

For inquiries: Masaaki Konoo or Kayoko Miyako
Corporate Communications & Investor Relations Dept. Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc. http://www.sonyfh.co.jp/index_en.html

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