Impact of Asset Management Policy Changes andOther Factors on Sony Life’s Market Consistent
Embedded Value

March 15, 2010
Sony Financial Holdings Inc.
Sony Financial Holdings Inc. All Rights Reserved0Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performance andthat are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict” 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 anysecurities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever.
Sony Financial Holdings Inc. All Rights Reserved1

Sony Life’s Approaches

Strengthen asset management and the financial base:Gradually increase holdings of (ultra) long-term bonds, in principal for holding tomaturity, to reduce the mismatch between assets and liabilities from an ALM
standpoint.
(Sony Life’s management vision)

Reduce the risk mismatch arising from Reduce risk assets (Japanese stocks and CBs)the asset–liability duration gap
Holdings of Japanese Stocks and CBs⇒ Ongoing accumulation of ultralong-termbonds since FY2008
Asset Durations
March 31, 2008：

8.7 years

March 31, 2009：13.6 years

December 31, 2009:16.5 years

12.8%
6.2%
03/31/08

8.4%

2.1%

CBs

1.7%

1.8%

Japanese stocks

03/31/09

12/31/09

Note: Amounts of individual items included in monetary trusts (JGBs,corporate bonds, CBs, Japanese stocks and other) have beenbroken down into their original investment categories.

Sony Financial Holdings Inc. All Rights Reserved2Changes to Interest Rate-Sensitive Whole Life Insurance
and Semi-Participating Insurance

From FY2010
Changes to asset management policy(for interest rate-sensitive whole life insurance and semi-participating insurance)⇒ From FY2010, Sony Life will invest in no stocks or other risk assets. Rather, thecompany will aim to achieve stable asset management by investing only in bonds.

Changes to dividend policy (for semi-participating insurance)⇒ In accordance with the above change, Sony Life has revised its method of calculating
dividends to policyholders to one based on interest income. This method is unaffectedby fluctuations in asset market value.

Sony Life has decided to reflect the impact of these changes on its MCEV calculation
as of March 31, 2010. The reason is that if a company’s management policy changes,that company is expected to reflect those changes to calculate MCEV.

Sony Financial Holdings Inc. All Rights Reserved3

Changes to Interest Rate-Sensitive Whole Life Insurance
and Semi-Participating Insurance
Changes to its asset management and dividend policies will enable Sony Life tominimize the fluctuation risk on its asset holdings and volatility in policyholder
dividends. The consequent reduction in the time value of options and guarantees,
which lower MCEV, will cause MCEV to rise and become more stable.

Change in the Time Value of Options and Guarantees
Vertical: Number of scenarios
Horizontal: Present value of future profit

AfterBefore

Time value of options andguarantees decreases

×
Scenario
average×
Present value ofcertainty-equivalentprofit×
Scenario
average×
Present value ofcertainty-equivalentprofit

The charts above show distributions of the present value of future profit for 1,000 investment scenarios. Changing its asset
management policy will enable Sony Life to reduce the degree of variation, resulting in higher and more stable MCEV.
Sony Financial Holdings Inc. All Rights Reserved4

Changes to Assumptions in the Calculation
for Third-Sector Products
As the result of a periodic review, certain revisions were made to the assumptions
used in the calculation for third-sector products.

Principal Revisions:・Mortality rates for third-sector products⇒ Switched to mortality rates based on detailed data for third-sector products. Theserates are lower than those for first-sector products, which were used until FY2009.

・Mortality and morbidity rates for some third-sector products⇒ Revised certain assumptions, including the negative impact on some products forwhich mortality and morbidity rates are confirmed to be worsening.

Decrease principally in the present value of certaintyequivalent profit, a component of MCEVSony Financial Holdings Inc. All Rights Reserved

5Impact on MCEV(Billions of yen)

Reflection in asset management policy and dividend
policyChanges to assumptions in the calculationof third-sector products+228.9(41.3)

Total+187.6

Of which, new business value+19.2

Note: The impact will be included in a table showing “Reconciliation analysis from MCEV at the end ofthe prior year” in MCEV disclosure materials as of March 31, 2010.

Circulation assumption：
The impact on MCEV has been calculated from the perspective of how much the reflection of changes inSony Life’s asset management policy and dividend policy, as well as its changes to the assumptions in thecalculation for third-sector products, might affect MCEV as of March 31, 2009, calculated based on policies
in force and market conditions, including interest swap rates as of March 31, 2009. The validity of thesecalculations has not been verified by outside specialists.

Sony Financial Holdings Inc. All Rights Reserved6Appendix

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Reference 1
The table below shows Sony Life’s MCEV as of March 31, 2009, as announced
on June 1, 2009.
Sony Life’s MCEV as of March 31, 2009

(Billions of yen)
As ofMarch 31,
2009

As ofMarch 31,
2008

400.9

816.5

(415.6)

Adjusted net worth

195.4

248.5

(53.1)

Value of existing businesses

205.4

568.0

(362.5)Present value of certainty-equivalentprofit

673.1

810.4

(137.3)Time value of options and guarantees(228.7)(94.8)(134.0)Frictional costs(58.5)(16.3)(42.3)

Cost of non-hedgeable risks(180.5)(131.5)(49.0)Of which, new business value

15.4

48.2

(32.9)

MCEVSony Financial Holdings Inc. All Rights Reserved

Change8Reference 2
March 31,2009

March 31,2010

Changes to management
policy will be reflected in
the calculation of MCEV
as of March 31, 2010.

FY2010FY2009March 15,
2010

Continuous
approach

Reducing the mismatch risk from the asset-liability duration gap
Decision to change asset
management and dividend policies

Assetmanagement
Sale of stocks and CBs(Interest rate-sensitive whole life insurance andsemi-participating insurance)April 1, 2010

(Holdings of Japanese stocks and CBs arescheduled to be zero by March 31, 2010.)

Adopt new asset management policy

Dividend policy (Semi-participating insurance)
Interest income and dividends
Gains/losses on sale of securities

April 1, 2010
Adopt new dividend policy(based on interest income)Sony Financial Holdings Inc. All Rights Reserved

9Reference 3

Excerpt from European Insurance CFO Forum Market Consistent Embedded Value Principles(MCEV principles) ©
G7.2 Where management discretion exists, has passed through an appropriate approval
process and would be applied in ways that impact the time value of financial options andguarantees, the impact of such management discretion may be anticipated in the allowance forfinancial options and guarantees but should allow for market and policyholders’ reaction tosuch action. The management discretion should assume that the shareholders pay out all
claims even if the assets of the company are exhausted. Management discretion is subject toany contractual guarantees and regulatory or legal constraints. The application of suchdiscretion must consider the environment arising in the future projection which will likely be
different from the current environment, but any changes from current decision rules (forexample regarding flexible crediting rates or policyholder bonuses) must be supported byappropriate approvals.

© Stichting CFO Forum Foundation 2008
Sony Financial Holdings Inc. All Rights Reserved

10Reference 4

Interest Rate-Sensitive Whole Life InsuranceThis insurance provides a lifetime death protection guarantee. If policy investment return exceeds the assumed
interest rate, the outperforming portion is added to the policyholder’s insurance benefit. The minimum insurancepayment is guaranteed, regardless of operating performance.

Semi-Participating Insurance
If the return on investment of policy reserve and others exceeds the assumed interest rate, the outperforming
portion is paid as a policyholder dividend.

Sony Life’s Semi-Participating Insurance

・Semi-participating endowment insurance
・Semi-participating individual annuities
・Semi-participating educational endowment insurance
・Semi-participating living standard insurance (joint type)・Semi-participating whole life nursing-care insurance

Note: The ratios of interest rate-sensitive whole life insurance and semi-participating insurance
to total individual insurance and annuities were approximately 8% and 4%, respectively,
based on the policy amount in force as of March 31, 2009.
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11

Contact:

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

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12