Presentation Materials

Management Vision of the Sony Financial
Holdings Group for Fiscal Year 2009

Sony Financial Holdings Inc.
June 4, 2009

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved0Disclaimers:
These presentation materials contain statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performance andthat are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” “possibility” and similar words that describe
future operating activities, business performance, events or conditions. Forward-looking statements, whether spoken or written,
are based on judgments made by the management of the SFH Group, based on information that is currently available to it. As
such, 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
securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment
whatsoever.
June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

1Today’s Agenda (From 3:00p.m. to 5:00p.m.) Our Vision of Group Management for FY2009

Teruhisa Tokunaka
Taro Okuda
Shinichi Yamamoto
Shigeru Ishii

President and Representative Director of Sony Financial Holdings Inc.
President and Representative Director of Sony Life Insurance Co., Ltd.
President and Representative Director of Sony Assurance Inc.
President and CEO, Representative Director of Sony Bank Inc.

 Question and Answer Session

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved2Sony Financial Holdings Inc.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

3

FY2008 Review

Highlights

Consolidated
Consolidatedfinancial
financialresults
resultswere
werehighly
highlyaffectedaffectedby
bythe
the

recentrecentfinancial
financialturmoil.
turmoil.
Sony
SonyLife’s
Life’sMCEV
MCEVasasof
ofMar
Mar31,
31,20092009amounted
amountedto
to¥400.9¥400.9billion,billion,down
down¥415.6¥415.6billion
billionfrom
fromMar
Mar31,
31,2008.
2008.
EachEachsubsidiarysubsidiarycontinued
continuedto
toincrease
increaserevenues
revenuesby
bysteadilysteadily

expanding
expandingbusinessbusinessoperations.
operations.They
Theyarearehighly
highlyevaluatedevaluatedfor
for
their
theircustomer
customersatisfaction
satisfactionlevel
levelandandtheirtheircustomer
customerservices
servicesbybyindependent
independentappraisal
appraisalorganizationsorganizations..

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

4

FY2008 Review(1) Profit and loss (Consolidated)
FY07（Billions of yen）

Ordinary revenues

822.1

44.5

Ordinary profit+4.6%

Life insurance
business

860.3
Non-life
insurancebusiness
Bankingbusiness-23.0%
Corporate andelimination

34.2

Consolidated

FY07

FY08

(Billion yen)

FY08

Consolidated

vs PY

Ordinary
revenues

741.3

766.2

+24.9

+3.4%

Ordinary profit

39.0

32.5

-6.5

-16.7%

Ordinary
revenues

55.6

61.8

+6.2

+11.2%

Ordinary profit

2.8

2.1

-0.6

-22.7%

Ordinary
revenues

25.9

33.3

+7.3

+28.5%

Ordinary profit

2.4

-0.5

-2.9

－

Ordinary
revenues

-0.8

-1.1

-0.3

－

Ordinary profit

0.2

0.1

-0.0

-48.0%

Ordinary
revenues

822.1

860.3

+38.1

+4.6%

Ordinary profit

44.5

34.2

-10.2

-23.0%Net income

24.2

30.7

+6.4

+26.7%(Billion yen)

08.3.31

09.3.31

Total assets

4,977.4

5,313.6+336.2+6.8%

Decrease invaluation
adjustments,
etc.

Net assets

261.6

204.8

-56.7

-21.7%

Sony Life

Impairment
losses::¥44.9 billion

Impairment
losses::¥2.4 billion

vs PY(Consolidated)-¥80.0billion
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

5

FY2008 Review
Sony Life’s MCEV
As of
Mar 31, 2008

As of
Mar 31, 2009

816.5

400.9

-415.6

Adjusted net
worth

248.5

195.4

-53.1

Value of existing
business

568.0

205.4

-362.5New business value

48.2

15.4

-32.9

(Billion)

MCEV

ChangeComplied
Compliedwith
with“MCEV“MCEVPrinciples”
Principles”announced
announcedby
byCFO
CFOforum
forumininJune
June2008.
2008.
In
InMay
May2009,2009,CFO
CFOforum
forumsuggested
suggestedthat
thatthethemandatory
mandatoryMCEV
MCEVreporting
reportingfor
forallall
European
Europeanmember
memberinsurers
insurersisispossibly
possiblydeferreddeferreduntil
until2011,2011,considering
consideringthe
theeffects
effectsofof
highlyhighlyvolatile
volatilemarket
marketconditions.
conditions.(http://www.cfoforum.nl/)(http://www.cfoforum.nl/)
Taking
Takingmeasures
measurestototasks
tasksobtained
obtainedfrom
fromMCEVMCEVvaluations,valuations,including
includingthose
thosetotoreduce
reduceinterest
interestrate
raterisks,
risks,while
whilemonitoring
monitoringupdated
updatedinformation
informationfrom
fromCFO
CFOforum.
forum.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

6

FY2008 Review
Highlights■Steadily increased in new policy amountand insurance in force (individual insurance
plus individual annuities), as well as income
from insurance premiums.
■Decreased in ordinary profit, due todeteriorating investment conditions.

■Ordinary revenues increased due to strong
sales of automobile insurance policies.

Weekly Economist (Aug 26, 2008)“Reliable Insurance Company”
ranking: No1

J.D. Power (Jul 29, 2008)
Customer Satisfaction Level in 2009:
No1 (in 2008: No1)

■Ordinary profit decreased, owing mainly
to an increase in the amount of claims paid.

■Ordinary revenues grew, as a higher
balance of investment assets in line with thebank’s business expansion■Ordinary profit declined owing to
impairment losses on securities held.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

Nikkei Newspaper
Customer Satisfaction Level in 2008:
No1 (in 2007: No1)

7

Issues the Companies Face
Operating Environment

Mid-term Issues

Common to all

SFH・Disruption in worldwide financial markets, prompted by the
subprime loan crisis
・Management crises and restructuring at European and
U.S. financial institutions
・Shift to international financial standards
・Demands to achieve both soundness and increases incorporate value■Increased management control in light of subsidiaries’
business expansion■Development of capital strategies to ensure subsidiaries’soundness and future growth■Synergies and new measures to maximize Group valueLife insurance industry

Sony Life・Growing importance of customer protection andaccountability requirements
・Industry restructuring gaining momentum
・Gradual shift to a new method of calculating the solvency
margin ratio■Acceleration of growth■Enhanced level of competitiveness through consultingbased sales■Appropriate risk controls

Non-life insurance industry (individual insurance)

Sony Assurance

・Industry restructuring creating non-life mega-insurers
・Growing preference for “reasonably priced but good”
products
・Falling new car sales■Acceleration of growth■Reinforcement of operations (strategic marketing, enhanced
Web promotion)■Enhancement of revenue and profit structures

Banking industry (individual asset management)

Sony Bank・Deteriorating economic environment
・Lower tendency to invest, higher risk aversion
・Resurgence of creditworthiness concerns about
Japanese and overseas financial institutions■Establishment of efficient operations to achieve mid-term
growth■Pursuit of customer-oriented products and services■Reinforcement of revenue and profit structures

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

8Stance on Enhancing Corporate Value
 Value Creation = Raising the value of each of the three financial companies + synergy + moving into new Value Creation = Raising the value of each of the three financial companies + synergy + moving into newfieldsfieldsofofbusinessbusiness In addition to raising corporate value through the steady growth of all three companies, we will foster cross In addition to raising corporate value through the steady growth of all three companies, we will foster crossselling
sellingand
andotherothersynergies
synergieswithin
withinGroup
Groupcompanies,
companies,asaswellwellasasmovemoveinto
intonew
newfields
fieldsofofbusiness.
business.As
Asaa
result,result,wewewillwillraise
raisethethecorporate
corporatevalue
valueofofthe
theSFH
SFHGroup.
Group.

Present

Future3) Move into new fields ofbusiness2) Contributions of crossselling and other synergies

1) Ongoing growth of our current
three main businesses• Sony Life
• Sony Assurance• Sony Bank

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

9Sony Life Insurance Co., Ltd.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

10

FY2008 Review(1) Profit and loss
Ordinary revenues

Ordinary profit(Billion yen)

+3.3%

765.9

741.2

-17.5%

FY07

32.4

FY08

+24.6

+3.3%

Income from insurance premiums

648.4

662.0

+13.6

+2.1%

Investment income

87.4

98.7

+11.2

+12.9%

Interest income and dividends

47.9

55.8

+7.8

+16.5%

Income from monetary trusts

14.7

-

-14.7

-100.0%Gains on sale of securities

24.0

32.1

+8.0

+33.7%

701.9

733.5

+31.5

+4.5%

Insurance claims and otherpayments

241.1

274.7

+33.6

+14.0%

Provision for policy reserve andothers

286.2

219.0

-67.1

-23.5%

Investment expenses

69.8

133.7

+63.8

+91.4%

Losses on sale of securities

1.5

16.1

+14.5

+933.5%

Devaluation losses on
securities

6.6

31.8

+25.2

+376.3%Losses on separate accounts

48.3

72.2

+23.8

+49.5%

94.3

93.9

-0.4

-0.5%

Ordinary profit

39.2

32.4

-6.8

-17.5%Net income

18.5

33.7

+15.2

+82.5%

Operating expenses

Sony Life

Ordinary revenues up but ordinary profit down year on year.
New policy amount up 1.9% year on year.
Income from insurance premiums increased owing tosteady growth of policy amount in force.
Core profit amounted to ¥38.0 billion
Lapse & surrender rate was 6.79%, up 0.67pt.
Solvency margin ratio as of Mar. 31, 2009 was 2,060.5%,
up 312.6 percentage points from that of Mar. 31, 2008.
Notes:
1.
Figures for new policy amount, policy amount in force, lapse & surrender rate are
the total of individual life insurance and individual annuities.
2.
The lapse and surrender rate is calculated without offsetting policies that are
reinstated.

Line item amounts are truncated below ¥0.1 billion;
percentage change figures are rounded.

June 4, 2009

vs PY

765.9

Ordinary expenses

39.2

FY08

741.2

Ordinary revenues(Billions of yen)

FY07

(Billion yen)

08.3.31

09.3.31

Change from 08.3.31

Securities

2,388.9

2,819.6+430.7+18.0%

Policy reserve

3,375.0

3,592.3+217.2+6.4%

Total net assets

182.6

140.7

-41.9

-23.0%

82.7

4.0

-78.7

-95.1%

3,659.7

3,810.9+151.1

+4.1%

321.7

275.1

-46.6

-14.5%Net unrealized gains/ losses onother securities

Total assets
Separate account assets

Sony Financial Holdings Inc. All Rights Reserved

11Review for FY08(2) Operating Performance
Policy Amount in Force(Individual Life Insurance + Individual Annuities)（Trillionsof yen）

Number of Lifeplanner Sales Employees（persons）

40

32.5
30

29.0

30.2

31.4

+3.2%

4000
3,825

+112
3,776

3,779

07.3

08.3

3,891

20

10

0
3000

0
06.3

07.3

08.3

09.3

06.3

09.3

Line item amounts are truncated below ¥100 billion.
Percentage change figures are rounded.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

12Market Overview(1) Life Insurance Market(Trillions of yen)Individual insurance : New policy amount

Death-protection insurance

120
100

105 103

90

84

80

Whole life insurance

60

Term life insurance

40

Endowment insurance

20

77

67

62
31（29)※

0
FY01 FY02 FY03 FY04 FY05 FY06 FY07 08.1H

Third sector insurance
Health insurance
Living benefit protection
insurance
Injury benefit insurance
Nursing care insurance(Billions of yen)

Third sector : Annualized premiums from new policies

700
600
500
400
300
200
100
0

561.0 577.6

313.4

339.8

480.3
251.2 （232.6）※

Estimate
FY01

Individual annuities

485.9

388.2

FY02

FY03

FY04

FY05

FY06

FY07

08.1H

Individual annuities : Number of new policies（Thousands)

2,000
Started sales
through bankdistribution
channels

1,500

Variable annuities
Fixed annuities

1,000

Foreign currency
denominated annuities

500

Fixed

Variable

1,368

1,545 1,575

1,511

1,113

※

848 （749）

749※Excluding the effect of Japan Post Insurance

510
Source: Statistics of Life Insurance Business in Japan0
FY01

June 4, 2009

The field of death
protection continues
to shrink, and rapid
expansion of themarkets for thirdsector products andindividual annuities
topped out in FY2006.

FY02

FY03

FY04

FY05

FY06

FY07

08.1H

Sony Financial Holdings Inc. All Rights Reserved

Materials officially disclosed by individual insurers

13Market Overview(2) Mid-term Outlook for Life Insurance Market
 People in their 30s and 40s, Sony Life’s primary target customer base, are expected to continue to account for a large
portion of Japan’s population, offering high growth potential.
 However, the senior market will expand as the baby boomer generation moves into retirement, and Japan’s low birthratemeans that our main customer segment will become smaller. We will need to respond to these upcoming changes inmarket composition.
Demographic Composition and Percentage of New Policies
by Age of Insured (Individual Annuities)(Percentage)
50.00%All Japanese insurers

Sony Life

Changes in Population Composition(Thousands)
2500

2008

2015 (forecast)

45.00%
2000

40.00%
35.00%

1500

30.00%
25.00%

Second-generation
baby boomers

1000

20.00%
15.00%

500

10.00%
5.00%
0.00%
～ 19

20 ～ 2930 ～ 3940 ～ 49

50 ～ 59

（age）
60 ～

Source: Prepared by Sony Life based on the Life Insurance Business Overview, fiscal 2007

June 4, 2009

0
0

10

20

30

40

50

60

70

80

90

（age）
100～

Sources: Annual Report on Current Population Estimates (Statistics Bureau, Ministry ofInternal Affairs and Communications) and Population Projections for Japan(National Institute of Population and Social Security Research)

Sony Financial Holdings Inc. All Rights Reserved

14Market Overview(3) Sony Life’s Market Position
 Although the overall market continues to shrink, Sony Life’s new policy amount and policy amount in force are gaining a

steadily growing share of the market.
 We expect to deploy our strength in consulting-based sales to effectively cultivate the market in the future, as well.
PolicyPolicy AmountAmount inin Force
Force (Individual(Individual Life
Life Insurance)
Insurance)New
New Policy
Policy Amount*
Amount* (Individual(Individual Life
Life Insurance)
Insurance)

200(Trillions of yen)
Total of all insurers

Sony Life's share

3Q 2008(6.9%, excluding
Japan Post
Insurance)

7.0%

2,000

(6.3%, including◆
Japan Post
Insurance)

6.0%

150

(Trillions of yen)

Total of all insurers
Sony Life's share

3Q 2008
3.4%(3.4%, excluding Japan
Post Insurance)

3.5%

3.0%

1,500

5.0%

2.5%

4.0%
100

2.0%
1,000

3.0%

1.5%

2.0%

50

1.0%

500

1.0%

0.0%

0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

Source: Statistics of Life Insurance Business in Japan
Materials officially disclosed by individual insurers* New policy amount is calculated without adjusting for the impact of conversion.

June 4, 2009

0.5%

0

0.0%
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
Source: Statistics of Life Insurance Business in Japan
Materials officially disclosed by individual insurers

Sony Financial Holdings Inc. All Rights Reserved

15Market Overview(3) Sony Life’s Market Position
 Sony Life ranks sixth in new policy amount, and is closing in on the top five insurers
 Sony Life maintains its high ranking for its net increase, catching up with insurer ranked from the fifth tothe seventh in policy amount in force◆New Policy Amount* Ranking
Ranking

Insurer

ResultShare◆Net Increase◆Policy Amount in Force
Ranking

Insurer

ResultShare(YoY increase/(YoY increase/decrease)decrease)Ranking

Insurer

Result1(1)А

3,877.82(-)

Б

2,555.8

3(2)

Sony
Life

884.2

1(2)

A

5,736.9

12.2(+0.2)

1(1)

α

195,945.8

20.6(-0.4)

2(1)

B

5,318.9

11.3(-1.0)

2(2)

β

161,32.58

17.0(-0.1)

3(3)

C

4,072.2

8.6(-1.1)3(3)γ126,239.8

13.3(-0.2)

4(12)

D

3,985.5

8.5(+5.8)4(4)δ108,417.2

11.4(-0.4)

4(3)

Д

792.9

5(4)

E

3,023.1

6.4(-1.0)5(6)ε37,966.7

4.0(+0.1)

5(5)

Е

383.8

6(6)

Sony Life

2,961.3

6.3(+0.2)

6(5)ζ

37,671.3

4.0(-0.1)

6(6)

Ж

345.7

7(5)

F

2,810.3

6.0(-1.2)7(7)η

33,937.1

3.6(-0.2)

7(8)

И

340.5

8(7)

G

2,107.7

4.5(-0.3)8(9)Sony Life

32,121.2

3.4(+0.2)

8(32)

К

331.9

9(8)

H

1,997.7

4.2(-0.3)9(8)θ30,651.6

3.2(-0.0)

9(9)

Л

318.6

10(9)
↑

I

1,690.4

3.6(+0.3)

10(10)

ι25,901.4

2.7(-0.1)

10（7)

Ю

258.0

（ ）: Ranking as of Dec 31, 07

Notes: Comparisons as of Dec 31, 08
Individual insurance (Units in billions of yen, %)Source: Statistics of Life Insurance Business in Japan* Calculated without adjusting for the impact of conversion

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

Materials officially disclosed by individual insurers

16Market Overview(4) Sony Life’s Growth Potential and Issues
Disruption in bank sales of variableannuities arising from the financial crisis

Growing accountability requirements

Ongoing price competition, owing toemergence of Internet-based life
insurance sales and shift toward
inexpensive third-sector products
Increasingly stringent price competition• Sony Life offers reasonably priced, high-quality products
centering on death protection via consulting-based sales,
as well as one of the industry’s highest levels of financial
soundness. The company has the opportunity to extend its
lead by leveraging these advantages.
• It is essential that we remain solidly competitive, in order to
respond to changes in the operating environment.
Growing selectiveness when choosing life insurers

Demonstrated superiority of channel positioning

Industry restructuring gaining momentum
triggered by sales and Management
crises of other insurers

Falloff in sales of protection-type products
though liberalized bank distribution
channels

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

17Mid-term Strategic Focuses
Mid-term

By reinforcing our competitiveness through consulting-based sales centered on life planningand after-sale follow-up activities, we aim to further entrench our position in the Japanese life
insurance market.

Strategy

Maintain or promote sustainable growth through the expansion of our business domain.
Aim for ongoing increases in corporate value, using MCEV as the criterion.

Corporate
value

Strategic Issues

Growth Strategy
Overseas
markets

Mergers, acquisitions and tieups to strengthen and expand
life insurance business
Developing annuities
business

Greater China market penetration

3. Expansion ofbusiness domains

Entering
overseas
markets

Response to industrial restructuring,
deregulation and other developments

Established annuities
subsidiary

Domestic
markets

１．Enhanced level of competitivenessthrough consulting-based sales
Strengthening andexpanding existing life
insurance business2．Appropriate risk controls
FutureJune 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

18

MCEV
(1) Management Positioning
Sony Life’s approaches

Life insurers in Europe that are members

 Approaches in the past
 Nov. 2005: Commencement of disclosures of Traditional

Embedded Value (TEV), starting from TEV as of March 31, 2005
 Nov. 2008: Shift of EV disclosures from TEV to Market Consistent

Embedded Value (MCEV), starting from MCEV as of March 31,
2008 Started MCEV disclosure as its EV information at fiscal year

endof the CFO ForumMandatory EV disclosures in compliancewith MCEV Principles has been scheduled.
Disclosures in compliance with MCEV

Principles is expected to spread, particularly
in Europe.
CFO Forum (December 2008)

 Management positioning An important indicator of our corporate value Understanding the cause of changes in corporate value enables us

to reflect the continuous improvement of our corporate value inmanagement strategy.
 Oriented towards a market-consistent evaluation of assets,

liabilities and risk management.
 Approaches in the futureDecided to conduct a review of the impact of

turbulent market conditions on the MCEV
Principles, as their application could, in suchmarket conditions, lead to misleading results.
Expressed possibilities of partial changes ofthe published MCEV Principles or of theguidance issues based on the review results.
Declared its continuous commitment to MCEV

 With an aim to achieve continuous growth of corporate value,

taking measures to tasks obtained from MCEV valuations.
 Major tasks currently recognized by Sony Life is to reduce interest
rate risks
 Specific actions to be taken in the future are Further reduction of the duration mismatch risk between
assets and liabilities
 Review product details by taking liability characteristics into
consideration
June 4, 2009

Trends surrounding MCEV

Principles
CFO Forum announced an update on

progress (May 2009)
Announced press release on their first-phasecollaborative work on the application of its
MCEV Principles in turbulent market conditions
For more details, please see the HP of the
CFO Forum (http://www.cfoforum.nl/)

Sony Financial Holdings Inc. All Rights Reserved

19

MCEV
(2) Results as of Mar31, 2009
(Billions of yen)

900
Adjusted net worth
Value of exsisting business

800
700
600
500
400
300
200
100
0

(Billions of yen)

816.5

-415.6As of
Mar 31, 2009
400.9

Adjusted net worth
Value of existing
business

248.5

-53.1

195.4

568.0

-362.6

205.4

New business value

48.2

-32.8

15.4

As of
Mar 31, 2008
MCEV

June 4, 2009

ChangeSony Financial Holdings Inc. All Rights Reserved

20

MCEV

(3) Reconciliation analysis from MCEV at the end of the prior year
As of Mar 31, 2008

Value ofexisting
business

As of Mar 31, 2009

-350.2
*1

568.0

*3

205.4

Economic
variances
Adjusted net
worth

-12.4

Other

195.4

248.5
-77.2

*2

24.1

*4
(Billions of yen)

*1: Including decreases in interest swap rates and a flattening of the term structure, and increases in the implied
volatilities of equity options and interest swaptions (¥276.6billion)
an increase in the allowance for non-hedgeable risks(¥40.1billion) and an increase in the frictional costs(¥33.4billion)*2: Decline in the prices of stocks and convertible bonds held and an increase in unrealized gains on maturity-held
securities and other factors*3: Increases in operating MCEV earnings, including new business value, expected business contribution and effects ofchanges in dynamic surrender rates, etc.
*4: Net realized gains, unfunded pension liabilities, intangible fixed assets, tax effect, reversal of statutory reserves,
dividends paid(¥7.0billion) and capital injection(¥10.0billion), etc.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved21

Major Initiatives (1) Enhance Competitiveness inConsulting-Based Sales

Establish “offering the world’s best life planning” and “building lifelong customer relationships” as uniquecore competencies of Sony Life to enhance the company’s competitive advantage.

Priority Measures Strengthen sales channels
 Raise quality levels andexpand business volume inboth the Lifeplanner andPartner channels

Future Initiatives
 Lifeplanner channel

 Foster large-scale independent agencies

 Regularize customer visits Cultivate customers via the customer bases

 Raise quality and expand number ofLifeplanner sales employee recruits
 Promote marketing Enhance products
 Continuously introduce

products that contribute toconsulting Create sales support structure Partner channel

 Promote life planning Recent initiativesof marketing support partners
 Introduce structural response to large-scaleregional agencies
 Develop and establish sales through banking
agencies Planned for introduction

 Whole-life cancer insurance

 Discount rider on family income(April 2008)
insurance (November 2009) Level-premium term life insurance with
 Thereafter, continue to introduce two newno surrender value (October 2008)
products each year Cancer hospitalization insurance(April 2009)

 Recent initiatives

 Upgrade IT systems in areas

 Developed new system for policy

related to sales planning andcustomer management
 Use structure to support aftersale follow-up services
 Expand value-added service
network

maintenance (September 2007)
 Developed claim payment support system(July 2008)
 Developed monthly “Notice of Protection”
reporting and after-sale follow-up system(April 2009)

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved Future plans Steadily develop new customer

management system
 Expand life planning support services
 Start offering services related to wills

and inheritances

22

Major Initiatives (2) Ensure Appropriate Risk andCost Controls

Evaluate corporate value on an economic basis, respond appropriately to solvency standards and theshift toward international accounting standards, and ensure that corporate governance is unassailable.
Through such efforts, seek to raise the level of trust and reliability felt toward the company by customers,
the market and society as a whole.

Priority Measures Strengthen asset management

and the financial base

Future Initiatives
 Asset management policyGradually increase (ultra) long-term bonds, in principal for holding to maturity, toreduce the mismatch between assets and liabilities from an ALM standpoint Policy for expanding internal reservesTo protect ourselves against risk, give top priority to ensuring sufficient ability tomake insurance claim and other payments

Increase soundness to remain at the top level in the industry Enhance risk management andrevenue management

Maintain or improve the solvency margin ratio, real net asset ratio and ratings

 Develop comprehensive risk management

Raise the level of risk management by introducing international accounting
standards, shifting to solvency margin standards on the basis of economic
value and responding appropriately to MCEV requirements

 Improve operating and administrative cost efficiencies

Set profitability standards for product development (pricing) and review
inefficient products
 Promote a project led by an internal task force to improve administrative cost
efficiencies
 Promote structural improvements via thorough reviews of operating processes
and conditions
 Ensure thorough internal

controls
June 4, 2009

 Strengthen initiatives to ensure compliance and protection of personal information


Thoroughly counter operating and other risks

Sony Financial Holdings Inc. All Rights Reserved

23Mid-term Targets(1) Operating Performance Index
Policy Amount in Force(Individual Life Insurance + Individual Annuities)（persons）（trillion yen）

Increasing 4% per year

40

30

30.2

Number of Lifeplanner Sales Employees

31.4

36.5

5000

Continuously recruiting wellskilled sales persons

4,100

32.5

4000

3,776

3,779

3,891

07.3

08.3

09.3

3000

20
2000

10

1000

0

0
07.3

08.3

09.3

12.3

12.3

Line item amounts are truncated below ¥100 billion.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved24Mid-term Targets(2) Corporate Value Indicator
MCEV(Billions of yen)

【Assumption】●Economic environment has no positive or negative
effects on MCEV calculations from Mar 31, 2009.
【Value driver】●Increasing new business value and improving
management efficiency*Aiming at steadily growing corporate value by mitigatinginterest swap risks and reviewing product details.

900
816.5

800
700
600

450～500

500
400.9

400
300
200
100
0
08.3
June 4, 200909.3
Sony Financial Holdings Inc. All Rights Reserved

12.3
25

Major Initiatives (3) Expand Business Domain(Annuities, Overseas Business)
Develop Annuities Business Basic stanceExpand Overseas Business (Mainland China)
 Development policyUse life planning to position individual annuities alongwith death protection as survivor protection products→ Expand the sphere of life planning Develop consulting-based sales at bank counters,
drawing a line between these and current investment
products, to foster the use of annuities for their true
purpose of ensuring security and a sense of safety in oldage→ Change the world of Japanese annuitiesFirst expand operations into Taiwan, using this as a footholdto extent business into mainland China→Transmit the Sony Life spirit and set steppingstones for
future growth Establish new company
Realize plans to establish a joint venture annuities
subsidiary through a 50:50 joint venture with the AEGONGroup of the Netherlands

Japan
Japan
Beijing Representative Office(Established in October 2008)●

MainlandMainland China
China

50%

Hong
Hong
Kong
Kong

50%

Joint venture annuities subsidiary(Currently in the
preparatory stage)
June 4, 2009

Sony Financial Holdings Inc. All Rights Reserveds●TaiwanTaiwanTaiwan Representative
Office(To be established during
the first half of FY2009)26

Sony Assurance

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved27

FY2008 Review(1) Profit and loss
Ordinary profit

Ordinary revenues(Billion yen)

FY07

FY08
vs PY

（Billionsof yen）

61.8
55.6+11.2%

Ordinary revenues

55.6

61.8

+6.2

+11.2%

Underwriting income

55.0

61.1

+6.1

+11.1%

Investment income

0.5

0.7

+0.1

+26.5%

52.8

59.7

+6.8

+13.0%

Underwriting expenses

38.9

44.2

+5.2

+13.4%

Investment expenses

0.0

0.1

+0.1

+2,958.1%

Operating, general andadministrative expenses

13.8

15.3

+1.4

+10.6%

Ordinary profit

2.8

2.1

-0.6

-22.7%Net income (loss)

2.1

-1.5

-3.7

－

08.3.31

09.3.31

Underwriting reserves

42.7

50.7

+8.0

+18.9%

Total net assets

15.3

13.6

-1.7

-11.1%

-0.0

-0.1

-0.1

－

78.6

86.6

+8.0

+10.2%

Ordinary expenses

2.8-22.7%

FY07

2.1

FY08

Sony AssuranceOrdinary revenues up, but ordinary profit down year on
year
Sales of automobile insurance policies were strong,resulting in ordinary revenues up 11.2% to ¥61.8 billion
Ordinary profit down 22.7% to ¥2.1 billion owing mainly tohigher claims paid
Net loss of ¥1.5 billion was recorded as a result of
extraordinary loss*(Billion yen)

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

Total assets*Disposal of intangible fixed assets (software in progress)

June 4, 2009vs PY

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

Sony Financial Holdings Inc. All Rights Reserved28

FY2008 Review(2) Operating performance
Net Premiums Written andNumber of Policies in Force(Millions of policies)(Billions of yen)

80

Other
Personal accident insurance
Voluntary automobile insurance
Number of policies in force

1.15

61.1

0.93

50.4
50

100

94.9

1.2

1

89.9

Earned/incurred loss ratio

89.0 +1.2pt

90.2

80

0.9

55.0

0.82

Net expense ratio

（%）

1.1

1.02

70
60

Net expense ratio + Earned/Incurred loss ratio

0.8 6045.2

64.6+1.2pt

63.6

63.5

62.3

0.7
0.6

40

0.5 40
30

0.4
0.3

20

20

0.2
10

±0.0pt

30.3
26.3

26.7

26.7

FY06

FY07

FY08

0.1
0

0
FY05

FY06

FY07

FY08

0
FY05

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written.

The number of policies in force is the total of automobile insurance and medical
Earned/Incurred loss ratio is equal to the ratio of the sum of net losses paid, loss adjustment expenses
and cancer insurance, which accounts for more than 99% of net premiums written.
and accumulation in provision for reserve for outstanding losses to earned premium.
Most personal accident insurance is medical and cancer insurance.
*Note that earthquake insurance and compulsory automobile liability insurance are excluded fromLine item amounts are truncated below ¥100 million for net premiums written andthe above calculation.
truncated below 10,000 for the number of policies in force.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

29Market overview(1) Auto insurance market

Auto insurance market & Share of Direct insurers
4000（Billion Yen）

Direct premiums written by direct insurer（Billion yen）

5.0%
4.5%
4.30%

3500
3.95%
3000

Sony

50

B
C

4.0%
40

3.64%

Ａ

3.5%

D
E

3.28%
2500

3.0%
2.83%

30
2.5%

2000
2.27%

2.0%

1500

20

1.71%
1.5%
1000
1.06%
0.65%

500

1.0% 10

Direct premiums written（Overall Japanese market）
Share of direct insurers

0.5%

0.31%
0

0.05%

0.0%

0

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08

Source: Insurance

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

30Market overview(2) Profitability (Automobile insurance)40%

Net expense ratio
Major A
Major B
Major C
Major D35%

Net expense ratio + E.I. Loss Ratio
110%
Major B

Major E

30%

Sony

Major C

105%
25%

Major E
20%
FY04

FY05

FY06

FY07

FY08

80%

Major A
100%

E.I. Loss ratio
75%

Major B

Major D
95%

Major E

70%

Major C
Major A

65%

Sony
Sony

Major D

90%
FY04

FY05

FY06

FY07

FY08

Source: Prepared by Sony Assurance, using the data disclosed by each companies

60%
FY04

June 4, 2009

FY05

FY06

FY07

FY08

Sony Financial Holdings Inc. All Rights Reserved31Mid-term Strategic Focuses
Mid-term Targets

Growth:Keep growth with an aim to achieve¥100.0 billion of direct premiums written

Profitability:
Establish profitability to maintainmore than 10% of adjusted ROE
June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

32Mid-term Strategic Focuses
Growth of Automobile Insurance

Risk-segmentation
High quality
Low
serviceexpense ratio

Marketing channel

Direct marketing
les Cha
a
S
nne
et
l Sa
ark
M
les
d
e
s
o
l
C

Shift to Internet
in Contract Channels
ervicessdeddahly value
ig
h
d
e
r
e
f
f
Human-oExpense ratio
Services provided through Internet

Fiscal years
June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

33

Major Initiatives(1) Sales strategy: Marketing channels (Automobile insurance)
Investment in Direct Channels Advertisement160

Direct channels

140

Direct Marketing Advertisement Expenses（Setting the level of FY07 as 100）120・Strategic investment in marketing costs 100
Direct Marketing Advertisement Expense Ratio（Setting the level of FY07 as 100)

80
60
40
20

Direct Marketing
Advertisement
Direct Marketing
Expenses
Advertisement Expense Ratio ＝×100
Net premiums
written0

Tie-up channels

FY07

FY08

FY09

FY10

FY11

・Cultivating new channels
・Cultivating new closed markets

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved34

Major Initiatives(1) Sales strategy: Contract channels (Automobile insurance)

Increasing Internet channels（Billion Yen）
2,500

Advertising Expenditures in Japanby type of media（Bar：Billion Yen）
8,000

7,000

TV

2,000

・Increase discount on online contract (February
2009)
・Strengthening web promotion
・Enhancing responses to mobile phone users

6,000

5,000

1,500

Newspaper

4,000

1,000

3,000

Internet

New policies by contract channels（including mobile）

2,000

Magazines

500

100%

1,000

Radio

90%

MobileNew policies
acquired by
phone

80%

70%

0

0

99

'00

'01

'00

'01

'02

'03

'04

'05

'06

'07

'08

Source: ”Advertising Expenditures inJapan” by Dentsu

60%

Newspaper50%

Website40%

30%

New contracts acquired
through Internet

20%

10%

0%

FY03

June 4, 2009

FY04

FY05

FY06

FY07

FY08

FY09.4

Sony Financial Holdings Inc. All Rights Reserved

35

Major Initiatives(2) Services strategy (Automobile insurance)
Accident resolution services
delivering strong customer satisfaction
Sony Assurance’s Quality Accident Resolution“On the Day, Any Day, Response” Service*-Accident reports accepted 24 hours a day, 365 days a
year-If an accident occurs on a holiday, rather than simply“receiving” the report, a response is initiated, resulting
in quick, same-day response.
-By the end of the day, response results are reported ina “same-day report.”-Provide a sense of security by quickly determining theperson in charge of responding, and that person
responding within three hours-Private settlements, with one person in charge ofhandling one accident-Informed consent through repetition of the
explanation/consent process-Method of communication can be selected

Customer Satisfaction with Accident Resolution
FY2007 Results
Out of 58,058 questionnaires distributed, received 15,878
response (Response rate: 27.3%)
Respondents’ opinions:
Satisfied: 78.2% Somewhat satisfied: 12.1%
No strong feeling either way: 5.7%
Somewhat dissatisfied: 2.4% Dissatisfied: 1.6%

June 4, 2009

High evaluations from outside institutions
Ranking on Customers’ Satisfactionlevel on Auto Insurance↑SonyRanking on Satisfaction on
Response to Auto Insurance Claims↑
Sony

J.D. Power Asia Pacific:
2008 Japan Auto insurance customer satisfaction study●Evaluation of “Satisfaction Level”
JD Power Response to auto insurance claims and at the time ofcontracting FY08 No.1 （see above）
GOMEZ Website satisfaction level
FY07 No.1
HDI Japan Customer Center Phone Response FY08 No.1

Sony Financial Holdings Inc. All Rights Reserved

36

Major Initiatives(3) Strategy to enhance profitability<Total of types of insurances><Improvement in expense ratio>
Expand business scale
Expand Internet channels (for new
policies)
Improve operational efficiency

Net expense ratio + E.I. Loss Ratio
100%
90%

89.9

89.0

90.2

63.6

62.3

63.5

26.3

26.7

26.7

FY07

FY08

91.3

80%
70%
60%
50%

<Expansion of product line-ups>

40%
30%

Medical and cancer insurance (SURE)
Overseas travel personal insurance
Pet insurance (offering as agent)

20%
10%
0%

FY06
E.I. loss ratio＝June 4, 2009

FY09

FY10

FY11

Net losses paid + Loss adjustment expenses +accumulation in provision for reserve for outstanding losses
Earned premiums
Excluding earthquake insurance and compulsory automobile liability insuranceSony Financial Holdings Inc. All Rights Reserved37Mid-term targets(1) Operating performance index
Direct premiums written

80 （Billon Yen）

Ordinary profit

75.0(Billion yen)

70

60.9

3.0

2.8

60

2.6

54.6
50

2.5

50.1

2.2
2.0
2.0

40

1.5

30

20

1.0

10

0.5

0

0
FY06

FY07

June 4, 2009

FY08

FY09

FY10

FY11

FY06

FY07

Sony Financial Holdings Inc. All Rights Reserved

FY08

FY09

FY10

FY11

38

Mid-term targets(2) Profitability index
Solvency margin ratio

Adjusted profit & Adjusted ROE
1,160%

1200%

1,074%
1,010%(Billion Yen)

20%

993%

1000%

16.1%
15%

800%

4.0

17.2%
3.3

3.2

3.5
3.0

2.6

Approx.12%

2.5
2.0

10%

600%

1.5
1.0

5%

400%

0.5
0%

200%

0
FY06

0%

FY07

-5%
FY06

FY07

June 4, 2009

FY08

FY09

FY10

FY11

FY08

-0.3
-1.6%

FY09

FY10

FY11
-0.5
-1.0

Adjusted ROE = Adjusted profit / Adjusted capital
Adjusted profit = The net income plus provision for special catastrophe reserve and its provision forreserve for price fluctuations, in each case after taxes.
Adjusted capital = The average amount of net assets plus the sum of special catastrophe reserveand its reserve for price fluctuations, in each case after taxes.

Sony Financial Holdings Inc. All Rights Reserved39Sony Bank

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved40

FY2008 Review(1) Profit and loss
（Non-consolidated basis）
Ordinary revenues（Billionof yen）+28.4%

Ordinary profit

33.3

25.9

（Billion yen）

FY07

FY08

vs PY

Ordinary revenues

25.9

33.3

+7.3

+28.4%

Gross operating profit

10.9

10.8

-0.0

-0.8%

Net interest income

5.1

6.6

+1.5

+30.2%Net fees and commissions

0.3

0.3

-0.0

-21.3%Net other operating income

5.4

3.9

-1.5

-28.3%

General and administrative
expenses

8.1

10.3

+2.1

+26.6%

Ordinary profit

2.7

0.4

-2.3

-84.9%Net income (loss)

4.4

-0.7

-5.2

－

-84.9%
2.7
FY07

0.4
FY08

Sony Bank
Ordinary revenues up, but ordinary profit down year
on yearOrdinary revenues up due to higher interest income
as investment assets increased in line with businessexpansion
Ordinary profit decreased as impairment losses onavailable-for-sale securities was recorded due todecline in the fiscal year-end market value of
securities
Net loss was recorded, caused by an increased
income taxes (deferred) by applying to the tax effectaccountingCustomer assets increased ¥156.2 billion year on
year to ¥1,403.6 billion.

June 4, 2009

（Billion yen）

08.3.31

09.3.31

vs PY

Securities

488.7

823.1

+334.3+68.4%

Loans

347.0

477.0

+130.0+37.5%

Deposits

1,144.3

1,326.3+181.9+15.9%Net assets

35.7

46.2

+10.5

+29.5%

-9.0

-9.6

-0.6

-

1,211.0

1,411.9+200.9+16.6%Net unrealized gains/losses onother securities (net of taxes)

Total assets

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

Sony Financial Holdings Inc. All Rights Reserved

41

FY2008 Review(2) Operating performance
Customer Assets (Deposits + Investment Trusts)
and Number of Accounts(Billion yen)

1,500

Yen deposits
Foreign currency deposits
Investment trusts
Number of accounts (thousand)

610
491

723

Loans

(Billions of yen)Mortgage loans

Other
477.0

500

1,403.6

Other¥8.7
billionInvestment
trusts:¥77.2 billion

1,247.3

430

400

347.0
1,000

Foreign300
currency
deposits:¥282.1 billion

848.8

Mortgageloans¥468.3billion

284.7
239.4

675.1
200

Yen
deposits:¥1,044.2 billion

500

100

0
06.3.31006.3.3107.3.3108.3.3108.3.31

09.3.31

09.3.31

Amounts are truncated below ¥100 million; numbers of accounts are truncatedbelow 1 thousand.

June 4, 200907.3.31Sony Financial Holdings Inc. All Rights Reserved

Amounts are truncated below ¥100 million.

42

Market Overview(1) Sony Bank’s ShareYen Time Deposits

Foreign Currency Deposits（Billion Yen）

（Billion Yen）

900
800
700
600
500
400
300
200
100
0

0.42%

Yen time deposits
Sony Bank’s share

0.5%

0.3%
675.4
368.0
65.1 119.8

6.0%
Foreign currency deposits

0.4%

806.5

5.9%

300
250

4.0%

200
150

0.2%
0.1%

167.6 197.2 229.1
0.0%

251.7 268.8

100
107.2

50
0

02.3.31 03.3.31 04.3.31 05.3.31 06.3.31 07.3.31 08.3.31 08.12.31

15.2

3.0%
2.0%

159.1 148.9 147.8

1.0%

48.5
0.0%

02.3.31 03.3.31 04.3.31 05.3.31 06.3.31 07.3.31 08.3.31 08.12.31

Investment TrustMortgage Loans（Billion Yen）

（Billion Yen）

0.4%

120
Investment trust

100

0.30%

Sony Bank’s share

0.3%

80
60
96.5
40

75.1

20
0

5.0%

Sony Bank’s share

3.0

8.4

16.4

0.2%

102.9
78

0.1%

29.6
0.0%

02.3.31 03.3.31 04.3.31 05.3.31 06.3.31 07.3.31 08.3.31 08.12.31

450
400
350
300
250
200
150
100
50
0

0.28% 0.3%
Mortgage loans
Sony Bank’s share
0.2%
423.0
234.3

278.0

338.8

0.1%

122.7
20.6

60.4

0.0%

02.3.31 03.3.31 04.3.31 05.3.31 06.3.31 07.3.31 08.3.31 08.12.31※Industry figures are derived from “domestic bank account” of Bank of Japan.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

43Market Overview(2) Sony Bank’s Share (Increased amount)
Increased amount of Retail Balance

Increased amount of retail deposits（Billion Yen）

500
450
400
350
300
250
200
150
100
50
0

（Billion Yen）

3.0%
Increased amount of retail balance

2.41%

Sony Bank’s share (increased amount)

2.5%

1.5%

200
150
100
50
0

1.0%
168.1

178.0

243.4

210.1 217.2

Sony Bank’s share (increased amount)

4.5%
4.0%
3.5%
3.0%
2.5%

450
400
350
300
250

2.0%
459.2

Increased amount of retail deposits

254.6
0.5%
0.0%

02.3.31 03.3.31 04.3.31 05.3.31 06.3.31 07.3.31 08.3.31 08.12.31

391.9

142.2

130.2

167.8

1.64%
194.6

152.3
53.0

2.0%
1.5%
1.0%
0.5%
0.0%

02.3.31 03.3.31 04.3.31 05.3.31 06.3.31 07.3.31 08.3.31 08.12.31

Increased amount of mortgage loans（Billion Yen）

120

Increased amount of mortgage loans

3.5%Sony Bank’s share (increased amount)

2.91%
100

2.5%

80

2.0%

60

111.6

※ Retail balance indicates the sum of yen deposits, foreign currency deposits,
investment trust and mortgage loans.

1.5%
84.2

40
※ Industry figures are derived from “domestic bank account” of Bank of Japan.

3.0%

62.3

20

39.8

43.7

60.8

20.6
0

1.0%
0.5%
0.0%

02.3.31 03.3.31 04.3.31 05.3.31 06.3.31 07.3.31 08.3.31 08.12.31※ Retail deposits indicates the sum of yen deposits and foreign currency deposits.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

44Market Overview(2) External Environmental Factors and Management strategies
Serious financial crisis tocontinue for some time
Interest rates
down worldwide

Management strategies
to firm up our foundations
Shrinking investment
margins
Limited avenues
for investment

Sudden downturn in theeconomic environment
Increased credit risk

zzSet
Setappropriate
appropriatespreads
spreadsonondeposits
depositszzIncrease
Increasecost
costcontrols
controls
zzIn
Inaddition
additiontotomortgage
mortgageloans,loans,

Increased risk of pricefluctuations on securities

diversify
diversifyinvestment
investmentavenues
avenuesthroughdirectfinancingthrough direct financingtotosecure
securestablerevenueandprofitsourcesstable revenue and profit sources

zzDevelop
Developproducts
productsandandservices
services
Reduced tendency for
individuals to invest
Higher risk aversion

Consumers taking their
cash out of circulation

forforthethesecurities
securitiesbusinessbusinessinin
preparation
preparationfor
foraamarket
marketupturn
upturnzzMaintain
Maintainhighhighratings
ratings(S&P:(S&P:A-;
A-;JCR:
JCR:AA-)AA-)

Resurgence ofcreditworthiness concerns
about Japanese andoverseas financial institutions

zzContinue
Continuetotomanage
managethetheIncrease in relative ranking
of Internet banks

company
companyininaamannermannerthatthatsatisfies
customers
satisfies customers

Shift from volume to quality focus:
Quality-oriented management
June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

45Mid-term Strategic Focuses■ Mid-termManagement Targets■ Mid-term
Priority Measures

Establish
Establishour
ourbank
bankas
asthe
the
clear
clearleader
leaderinincustomer
customersatisfaction
satisfaction◆ FY2008

PursuePursuecustomer-oriented
customer-oriented
products
productsandandservices
services

ROE*1(0.1%)

Capital adequacy ratio*2

11.08%

Retail balance¥1,880.7 billion*1 Real ROE after adjusting for tax effects(effective tax rate of 40%).

■ Mid-termManagement Policies*2 Capital adequacy ratio calculated without
applying the special exception to the
Financial Services Agency Standard.

 Accelerate
Accelerategrowth
growth Establish
Establishaafirm
firmpresence
presenceasasan
anassetassetmanagement
management
bank
bank
 Raise
Raiseefficiencies
efficiencies
 Forge
Forgestronger
strongerwin–win
win–winrelationships
withrelationships withcustomers
customers

June 4, 2009

■ Numeric Targets(Consolidated Basis)

Establish
Establishoperations
operationsthatthatareefficientandreliableare efficient and reliable◆ FY2011

Reinforce
Reinforcethe
thefinancial
financial
structure(raiseprofitability,
structure (raise profitability,
heightenheightenrisk
riskmanagement)
management)

Sony Financial Holdings Inc. All Rights Reserved

ROE

More than 7%

Capital adequacy ratio

Approx. 10%

Retail balance¥2,640.0 billion

46

Major Initiatives (1) Sales strategy~ Providing total solutions from competitive interest rates~
FeaturesFeatures ofof SonySony Bank’s
Bank’s Mortgage
Mortgage Loans
Loans

Balance of Mortgage Loans（Billion Yen）



500
450

468.3

GeneralTie-up channels
Banking agency

No need to go to a bankbranchSimple to accelerate payments

No loan guarantee fee requiredEasy to change type of loan interest
rate

Reasons for Choosing a Mortgage Loan

400

※ Source: Sony Bank Survey

338.8

350

Legend

300
250

Low
interest rate

No loanguarantee
fee required

Application
possibleover theInternet

23%

11%

278.0
FY08

234.3

200

26%

Easy to
Simple to change type
accelerateof loanpayments interest rate
26%

14%

Loan Advisor Response

150
LegendVerysatisfiedSatisfiedSomewhatsatisfied

100
FY08

50

32%

※ Source: Sony Bank Survey
No strong
feeling SomewhatVeryeither dissatisfied Dissatisfied dissatisfied
way

43%

10%

8% 4% 1%2%

006.3.31

June 4, 200907.3.3108.3.31

09.3.31Sony Financial Holdings Inc. All Rights Reserved

47

Major Initiatives(2) Asset management & cost control strategy
Basic Balance & Interest Spread (Non-consolidated basis)

Asset management (Non-consolidated basis)*Internal management basis
0%
1.0%
0.90%

0.87%

around0.9%

LegendCall loan

Interest spread

0.7%

07.3.31（Billion yen）

20.0

Net interest income
General and administrative expenses

15.0

Basic balance

10.0

40%

60%

80%

100%

0.91%

0.9%
0.8%

20%

12.4

103.0

Loans

Securities

Corporate Foreign
JGB bonds
securities
131.0
95.7
147.4

284.7

08.3.31352.5

171.1 152.1 152.8

09.3.31 49.9

288.3

303.3

347.0

9.2
7.3

5.0
-0.3

1.1

FY06

FY07

-7.6

-8.1

215.3

477.0

2.1

0
FY08

FY11

-50
-10.0

-10.3

12.3.31

Approx. 60%

Approx. 40%-15.0* Internal management basis: Of transactions treated as “net other income (loss)” and “net fees and commissions” from a financial accounting
standpoint, real investment gains or losses are recognized as “investment of assets” from a managerial accounting standpoint.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

48Mid-term Targets(1) Operating performance index
Retail balance（Billion Yen）

1,200

3,000

1,100

Retain loan

2,640.0

Investment trusts
2,500

Number of accounts（Thousand）

Foreign currency deposits
Yen deposits

1,000
720.0
800

1,880.7

2,000

723

90.0
1,594.4
1,500

347.0
1,133.6

1,000

284.7

102.9

477.0

610
600

77.2

491

282.1

251.7

400

96.5
147.8
500

330.0

1,500.0
892.6

1,044.2

200

604.4
0

0
07.3.31

June 4, 200908.3.31

09.3.3112.3.3107.3.3108.3.31Sony Financial Holdings Inc. All Rights Reserved

09.3.3112.3.3149

Mid-term targets(2) Profitability index
Capital adequacy ratio

Gross operating profit & ROE（after adjustment for tax effects）*Internal management basis

More than 7%
4.0%

3.6%

2.3%
（Billion Yen）

-0.1%
ROE

25.0

20.0

8%
6%
4%
2%
0%
-2%

Net other operating income
Net fees and commissions
Net interest income

13.25%
11.49%

11.08%

14.0%

Approx. 10%

12.0%
10.0%

（Billion Yen）

Capital adequacy ratio
9.11%

80

8.0%

Tier2
Tier1

70

58.9

60

15.0
50

0.2
1.3

10.0
1.3

0.4

5.0
7.2

40

0.3
12.4

37.4

37.0

07.3.3108.3.31

30

9.2
20

0

-1.7

10
0

-5.0
FY06

FY07

FY08

FY11

※ Realistic ROE after adjusting tax effects (effective tax rate of40%) ROE of 3.6% in FY08 is the level excluding the effect ofimpairment losses

June 4, 200909.3.3112.3.31※ Capital adequacy ratio of 11.08% as of March 31, 2009 was
calculated without applying the special exception of the standard
mentioned above, in accordance with the FSA public ministerial
announcement No. 79 of 2008.

Sony Financial Holdings Inc. All Rights Reserved50Sony Financial Holdings Inc.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved51

Stance on Enhancing Corporate Value (This page is the same as P.9)
 Value Creation = Raising the value of each of the three financial companies + synergy + moving into new Value Creation = Raising the value of each of the three financial companies + synergy + moving into newfieldsfieldsofofbusinessbusiness In addition to raising corporate value through the steady growth of all three companies, we will foster cross In addition to raising corporate value through the steady growth of all three companies, we will foster crossselling
sellingand
andotherothersynergies
synergieswithin
withinGroup
Groupcompanies,
companies,asaswellwellasasmovemoveinto
intonew
newfields
fieldsofofbusiness.
business.As
Asaa
result,result,wewewillwillraise
raisethethecorporate
corporatevalue
valueofofthe
theSFH
SFHGroup.
Group.

Present

Future3) Move into new fields ofbusiness2) Contributions of crossselling and other synergies

1) Ongoing growth of our current
three main businesses• Sony Life
• Sony Assurance• Sony Bank

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

52

Capital and Dividend Policies

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

53

Capital and Dividend Policies■Basic Idea of Capital and Dividend Policies
Maintaining our ongoing soundness as a financial institution
Monitoring each of statutory risks, risks on our internal management model and equity capital for our
three subsidiaries.
Each of financial soundness indicator is expected to exceed the required level based on the current
regulations in the future.

Financial Soundness
Indicator(As of Mar31, 2009)

Solvency
Margin Ratio

2,060.5％

Solvency
Margin Ratio

993.0％

Capital Adequacy Ratio(Domestic Criteria)* 11.08％* calculated without applying the special exception to the Financial Services Agency Standard

Estimated changes inbusiness
environment

Dividend policies■Introducing International accounting standards
・Time valuation of insurance liabilities
・Comprehensive income statements■(Insurance) Introducing Solvency II and other indices■(Bank) Attracting more attention on the core capital adequacy ratio
Ensuring stable ongoing dividends to shareholders for a long term period,
considering the Group’s operating performance
FY07(results): ¥3,000 per share

June 4, 2009

FY08(outlook): ¥3,000 per share

Sony Financial Holdings Inc. All Rights Reserved54Consolidated Operating Performance Forecast& Mid-Term Management Targets

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved55

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

FY08

Consolidated ordinary
revenues
Life insurance business
Non-life insurance businessBanking business
Consolidated ordinary profit
Life insurance business
Non-life insurance businessBanking business
Consolidated net income

FY09.1H

FY09（Forecast）（Forecast）■Life insurance businessChangeFY09 forecast
vs FY08 actual

860.3

437.0

900.0

+4.6%

766.2

392.1

808.7

+5.5%

61.8

65.3

+5.5%

33.3

32.9
12.7

26.1

- 21.8%

34.2

20.0

46.0

+34.3%

32.5

19.8

43.5

+33.7%

2.1

0.4

1.2

- 44.9%

-0.5

0.3

1.3

－

30.7

10.0

24.0

- 21.9％Higher ordinary revenues are expected due to an increase of income frominsurance premiums, in line with the steady growth of policy amount inforce. Higher ordinary profit is expected owing to an improvement in gains
and losses from investment.

■Non-life insurance business
Higher ordinary revenues are expected caused by steady businessexpansion, mainly in its mainstay automobile insurance. Lower ordinary
profit is expected due to a rise in the loss ratio and in the expense ratio
resulting from higher system-related expenses.

■Banking business
Lower ordinary revenues are expected, as interest income is expected todecrease, affected by worldwide reductions in interest rates, although thebusiness is expected to expand in line with a growing balance of deposits
and loans. Higher ordinary profit is expected resulting from a growth ingross operating profit due to a decrease in interest expenses.

Consolidated Ordinary Revenues(Billionsof yen)1,000

800

Banking business
Non-life insurance businessLife insurance business
860.3
822.1
759.2

Consolidated Ordinary Profit(Billions of yen)
900.0

50
45

Banking business
Non-life insurance businessLife insurance business
46.0
44.5

40

34.2

35
30

600

25

(Forecast)
Forecast)

400

20(Forecast)
Forecast)

18.3

15
10

200

5
0

0
FY06

June 4, 2009

FY07

FY08

FY09

-5

FY06

Sony Financial Holdings Inc. All Rights Reserved

FY07

FY08

FY09

56

Mid-term Management Targets (FY2011)
Key Management Benchmarks
 Consolidated ordinary revenues, consolidated ordinary profit and consolidated net income
 Consolidated adjusted ROESony Life
Life Market
Market ConsistentConsistent Embedded
EmbeddedSony
Value(MCEV)
Value (MCEV)

Target adjusted ROE of 7%+

Sony Assurance
Assurance Net
Net Income
Income andandSony
Adjusted
ROE
Adjusted ROE

SonySony Bank
Bank NetNet Income
Income andand ROE
ROE

Aim to Maintain Adjusted ROE of 10%+Target ROE of 7%+(Billions of yen)

ＭＣＥＶ

Net income

Adjusted ROE (%)

800

20%

20%

10%

10%

0%

0%

-10%

600

400

200

-10%

(Billions of yen)

-20%

-20%

-30%

-30%

-40%

-40%

-50%

-50%

-60%

-60%

-70%

07

08

09

10

(2.0)

11(FY)(FY)

-80%
07

Source: Sony Life
Notes: Calculation of Adjusted ROE
Numerator: Net increase in MCEV plus dividend
Denominator: The average of (MCEV at previous fiscal year-end — dividend+ MCEV at current fiscal year-end）

June 4, 2009

ROE（%）

10.0

20%

8.0 of yen)(Billions

10%

6.0

0%

4.0

-10%

2.0

-20%

0.0

-30%

-70%

-80%

0

Net income

Adjusted ROE

08

09

10

11

(FY)

Source: Sony Assurance
Notes: Calculation of Adjusted ROE
Numerator: Net income plus an increase in provision for special
catastrophe reserves (after-tax) and an increase in reserve for pricefluctuations (after-tax)
Denominator: The average of (net assets + special catastrophe reserve(after-tax) and reserve for price fluctuations (after-tax)) as of the previous
fiscal year-end and the current fiscal year-end

Sony Financial Holdings Inc. All Rights Reserved

(2.0)
07

08

09

10

-40%
11 (FY)

Source: Sony Bank
Notes：Calculation of ROE:
Numerator: Net income
Denominator: The average of net assets as of the previous fiscal yearend and the current fiscal year-end
ROE after adjusting tax effect (tax percentage: 40%)
ROE for FY08 is calculated, excluding the effects of impairment losses.

57

APPENDIX

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved

58

Key Management Benchmarks¾ Consolidated ordinary revenues, consolidated ordinary profit andconsolidated net income¾ Consolidated adjusted ROE
Perspective on Consolidated Adjusted ROESony Financial Holdings GroupSony Life

Sony AssuranceSony Bank

Net income
Numerator

Denominator

Net increase in MCEV
plus dividend

The average of (MCEV atprevious fiscal year-end
minus dividend plus MCEV atcurrent fiscal year-end)+ Increase in provision for special
catastrophe reserves (after tax)++

+ Increase in reserve for pricefluctuations (after tax)

The average of (net assets +special catastrophe reserveand reserve (after-tax) for pricefluctuations (after-tax)) as ofthe previous fiscal year-end
and the current fiscal year-end

Net income++

The average of net assets asof the previous fiscal year-end
and the current fiscal yearend

Note: Calculations take dividends and taxes into consideration.

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved59Thank you!

June 4, 2009

Sony Financial Holdings Inc. All Rights Reserved60

Contact:
SFH

June 4, 2009

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

Sony Financial Holdings Inc. All Rights Reserved61