November 29, 2005
Sony Financial Holdings Inc.

Interim Consolidated Financial Results
for the Fiscal Year ending March 31, 2006
(Prepared in Accordance with Japanese GAAP)Tokyo, November 29, 2005 -- Sony Financial Holdings Inc. (“SFH”) today announced its interim consolidated
financial results for the six months ended September 30, 2005 (from April 1, 2005 to September 30, 2005). SFH
maintains its accounting records and prepares its financial statements in Japanese yen in accordance with theCommercial Code of Japan, the Insurance Business Law of Japan and the Banking Law of Japan and in conformitywith generally accepted accounting principles and practices in Japan. Despite the information set forth herein,
SFH’s parent company, Sony Corporation, otherwise reports its financial statements in accordance with generally
accepted accounting principles and practices in the United States.

Highlights
Ordinary revenues increased 17.5% from the same period of the previous year to ¥362.7 billion.
Ordinary revenues from the life insurance business increased 16.3% year on year to ¥332.3 billion, mainly as aresult of an improvement in gains and losses from investments and an increase in income from insurance premiums
reflecting a stable increase of insurance-in-force in particular from individual life insurance policies. Ordinary
revenues from the non-life insurance business increased 21.7% year on year to ¥22.5 billion as a result of acontinued increase in net premiums written mainly from automobile insurance. Ordinary revenues from thebanking business increased 80.0% year on year to ¥8.2 billion associated with steady growth resulting mainly froma stable increase in deposited assets and housing loans.
Ordinary profit increased 266.1% from the same period of the previous year to ¥24.0 billion.
Ordinary profit from the life insurance business increased 142.9% year on year to ¥23.4 billion, primarily as aresult of an improvement in gains and losses on investments in the general account. In the non-life insurance
business, ordinary loss improved ¥0.9 billion year on year to ¥0.1 billion, backed by an increase in net premiums
written and an improvement in the expense ratio. The banking business recorded ordinary profit of ¥0.7 billion, a¥2.7 billion improvement from the same period of the previous fiscal year. This was achieved as a result of anincrease in ordinary revenues and gross operating profit associated with business expansion.
Net income increased 403.2% from the same period of the previous year to ¥13.8 billion.
Total assets as of September 30, 2005 increased 9.3% from March 31, 2005, and 16.9% from September 30, 2004
to ¥3,587.7 billion.
During the six months ended September 30, 2005, SFH purchased 15,000 shares of common stock, approximately
3.2% of total number of shares outstanding, of Sony Bank Inc. (“Sony Bank”) from LabMorgan Investment
Corporation, a unit of JPMorgan. As a result, SFH’s percentage ownership in Sony Bank has increased from
84.2% to 87.4%.

1【Segment Information】
Ordinary revenues(Millions of Yen)
For the six months ended
September 30, 2004

For the six months ended
September 30, 2005

Change (%)

Life insurance business

285,766

332,338+16.3

Non-life insurance business

18,55022,568+21.7

Banking business

4,586

8,254

+80.0

308,903363,161+17.6(234)(413)

308,668

362,747

SubtotalCorporate and elimination
Consolidated+17.5

Ordinary profit (loss)(Millions of Yen)
For the six months ended
September 30, 2004

For the six months ended
September 30, 2005

Change (%)

Life insurance business

9,636

23,403+142.9

Non-life insurance business(1,120)(132)-

Banking business(1,982)764-

Subtotal

6,533

24,035+267.9

3927

6,572

24,063

Corporate and elimination
Consolidated+266.1Banking business segment includes a one-time amortization of goodwill associated with purchase of SonyBank’s shares in the six months ended September 30, 2005 and acceptance of an increase in capital stock of Sony
Bank in the same period of the previous year.

For inquiries:
Sony Financial Holdings Inc. Corporate Communications
Tel: 81-(0)3-5785-1074
Website of Sony Financial Holdings Inc.: http://www.sonyfh.co.jp/english/

2Interim Consolidated Financial Summary
for the Fiscal Year ending March 31, 2006
November 29, 2005
Company name:
Representative:
For inquiry:

Sony Financial Holdings Inc.
(URL http://www.sonyfh.co.jp/english/)
Teruhisa Tokunaka, President, Representative Director
Hiroaki Kiyomiya, Chief Manager – Corporate Control Dept.

Consolidated financial results for the six months ended September 30, 2005
(in millions of yen except per share data and percentages)(1) Operating results
Ordinary Revenues
millionFor the six months ended
September 30, 2005
For the six months ended
September 30, 2004
For the year ended
March 31, 2005

For the six months ended
September 30, 2005
For the six months ended
September 30, 2004
For the year ended
March 31, 2005

Ordinary Profit%change

millionNet Income%change

million%change

362,747(+17.5 )24,063( +266.1 )13,885( +403.2 )308,668

(-)

6,572

(-)

2,759

(-)

653,259(-)

12,269(-)

6,375(-)

Net Income per ShareNet Income per Share(Fully Diluted)

Yen

Yen

6,612.24-

1,343.90-

3,069.93-

Note:
Since the company wasestablished on April 1, 2004,
there are no comparative datafrom the previous fiscal year
for the six months ended
September 30, 2004 and theyear ended March 31, 2005.

Notes: 1. Average number of shares outstanding (Consolidated): For the six months ended September 30, 2005: 2,100,000 shares
For the six months ended September 30, 2004: 2,053,552 shares
For the year ended March 31, 2005:2,076,712 shares
2. Changes in accounting policy: None

(2) Financial conditions
Total Assets

Total Stockholders’EquityStockholders’Equity Ratio

Stockholders’ Capital Adequacy Ratio(domestic criteria)
Equity per ShareYen (Preliminary basis) %million yen

million yen%

As of September 30, 2005

3,587,704

221,392

6.2

105,425.22

12.11

As of September 30, 2004

3,069,563

167,461

5.5

79,743.40

12.75

As of March 31, 2005

3,282,269

182,817

5.6

87,056.14

12.17

Notes: 1. Number of shares outstanding (Consolidated): As of September 30, 2005: 2,100,000 shares
As of September 30, 2004: 2,100,000 shares
As of March 31, 2005:
2,100,000 shares
2. Pursuant to “Defining the Standards on the Consolidated Capital Adequacy Ratio under the Provision of Article 52-25 of the
Banking Law (Ministry of Finance Directive 62, 1998)”, insurance subsidiaries are excluded from calculation of theconsolidated capital adequacy ratio.

(3)

Cash Flows

For the six months ended
September 30, 2005
For the six months ended
September 30, 2004
For the year ended
March 31, 2005

Cash and Cash
Equivalents at end of(interim) fiscal year
million yen
million yen

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

million yen

million yen

249,095(318,361)-

184,774

236,331(347,126)

3,515

155,234

274,150(286,192)

3,500

253,969

3

Cash Flows from
Financing Activities

Consolidated Balance Sheets [Unaudited](in millions of yen)
As of September
30, 2004

As of March 31,2005

As of September
30, 2005

Assets:Cash and due from banks
Call loans and bills bought
Commercial paper and other debt purchased
Monetary trusts
Securities
Loans
Property and equipment
Due from agencies
Due from reinsurers
Foreign exchanges
Other assets
Deferred tax assets
Reserve for possible loan losses

44,676140,857
9,316
464,041
2,147,533
149,944
51,2663
366
6,775
53,4961,466(181)

75,811
303,796
1,998
515,229
2,058,456
206,305
51,6685252
4,659
62,562
1,710(187)

90,716
126,505
2,000
583,400
2,385,039
254,020
63,673
4
263
10,92369,515
1,850(209)

Total Assets

3,069,563

3,282,269

3,587,704

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

25,1172,250,692
830
952
386
15
451,230
100,208
4
37,811
1,366
9,584
61
13,218
4,987

25,363
2,418,194
735
1,155
781
546,717
24,60013
45,543
1,495
10,492
77
12,672
6,02928,507
2,566,029
927
1,019
553
591,540
56,1002
71,055
1,555
10,962
108
14,592
18,795

Total Liabilities

2,896,468

3,093,875

3,361,750

5,633

5,576

4,561

Stockholders’ Equity:
Common stock
Capital surplus
Retained earnings
Land revaluation
Net unrealized gains on other securities, net of taxes
Foreign currency translation adjustments

5,500
180,877(62,848)(768)
44,974(273)

5,500
180,877(59,232)(768)
56,817(374)

5,500
180,877(45,346)(768)
81,345(213)

Total Stockholders’ Equity

167,461

182,817

221,392

3,069,563

3,282,269

3,587,704

Minority Interests

Total Liabilities, Minority Interests and Stockholders’ Equity

4

Consolidated Statements of Income [Unaudited](in millions of yen)
For the six months For the six months
For the year ended
ended September ended September
March 31, 2005
30, 2004
30, 2005
Ordinary Revenues

308,668

362,747

653,259

Ordinary Revenues from the Life Insurance Business:
Income from insurance premiums
Investment income
Other ordinary income

264,255
20,485794

282,424
47,972
1,577

551,447
50,254
2,072

Ordinary Revenues from the Non-life Insurance Business:
Underwriting income
Investment income
Other ordinary income

18,414
124
622,382
161
1437,862275
10

Ordinary Revenues from the Banking Business:
Interest income
Fees and commissions
Other operating income
Other ordinary income

2,777
359
1,440
9

4,335
647
3,225
6

6,563
799
3,946
25

Ordinary Expenses

302,095

338,684

640,990

Ordinary Expenses from the Life Insurance Business:
Insurance claims and other payments
Provision for policy reserve and others
Investment expenses
Operating expenses
Other ordinary expenses

93,533135,082
4,22739,111
4,115

116,907
145,932
1,803
40,063
4,149

194,141
299,508
5,115
79,682
8,603

Ordinary Expenses from the Non-life Insurance Business:
Underwriting expenses
Investment expenses
Operating, general and administrative expenses
Other ordinary expenses

13,856
4
5,674
0

16,4066
6,093
1428,54621
12,0970

Ordinary Expenses from the Banking Business:
Interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses

1,121
265
1,302
3,301
497

2,154
437
865
3,394
455

2,855
479
2,452
6,902582

Ordinary Profit
Extraordinary Gains
Extraordinary Losses
Provision for Reserve for Policyholders’ Dividends

6,572
1,000305

24,063
11,961350

12,2690516519

Income Before Income Taxes
Income Taxes - Current- Deferred
Minority Interests

5,266
5,341
(2,572)262

21,752
8,926(1,236)(176)

11,233
13,570(8,428)284

Net Income

2,759

13,8856,375

5

Consolidated Statements of Cash Flows [Unaudited](in millions of yen)
For the six months For the six months
ended September ended September For the year ended
March 31, 2005
30, 2004
30, 2005
Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Increase in policy reserve and others
Interest and dividends
Interest expenses
Net (increase) decrease in loans
Net increase (decrease) in deposits
Net (increase) decrease in call loans and bills bought
Net increase (decrease) in call money and bills sold
Others, net

5,266
1,602
140,026(15,151)
1,252(11,260)
72,667
8,609
35,208(10,049)

21,752
1,723
151,326(16,524)
2,156(45,752)
45,05593,19031,500(39,730)

11,233
3,339
307,989(32,593)
2,988(63,361)
168,060(86,729)(40,400)(20,051)

Subtotal

228,170

244,698

250,474

Interest and dividends received
Interest paid
Policyholders’ dividends
Income taxes paid

22,918(944)(259)(13,552)

19,722(2,177)(159)(12,987)

41,612(2,413)(568)(14,954)

Net cash provided by operating activities

236,331249,095

274,150

Cash flows from investing activities:
Investments in monetary trusts, net
Purchases of securities
Proceeds from sale and redemption of securities
Investments in loansCollections of loans
Others, net(47,417)(682,583)
391,398(14,372)
11,040(262)(59,264)(625,959)
384,042(19,053)
16,854(350)(94,487)(1,083,349)
906,646(37,146)
28,653(1,151)(342,195)(303,731)(280,835)(4,932)
1-(13,059)(1,571)(5,358)1-

Net cash used in investing activities(347,126)(318,361)(286,192)

Cash flows from financing activities:
Proceeds from borrowings
Repayments of borrowings
Proceeds from issuance of stocks
Cash dividends paid

15
10,000(6,500)-15(15)
10,000(6,500)Net cash provided by financing activities

3,515-

3,500

071(2)Net decrease in cash and cash equivalents(107,279)(69,194)(8,544)

Cash and cash equivalents at beginning of year

262,513

253,969

262,513

Cash and cash equivalents at end of year

155,234

184,774

253,969

Subtotal
Purchases of property and equipment
Proceeds from sale of property and equipment
Purchase of securities of a consolidated subsidiary

Effect of exchange rate changes on cash and cash equivalents

Notes:
1. The reconciliation of “Cash and cash equivalents” in the consolidated statements of cash flows to “Cash and due from banks” in the
consolidated balance sheets is as follows:(in millions of yen)
Cash and due from banks:
44,67690,71675,811
Call loans of domestic life insurance subsidiary:
108,500
92,000176,100
Securities of non-life insurance subsidiary:
32,55937,17232,932
Securities other than cash equivalents of non-life insurance subsidiary:(30,501)(35,114)(30,874)
Cash and cash equivalents:
155,234
184,774
253,969
2. Cash flows from investing activities include cash flows from lending operations of the insurance business.

6Notes to the Consolidated Financial Statements
1. Basis of Presenting Consolidated Financial Statements
Sony Financial Holdings Inc. (the “Company”) and its domestic subsidiaries maintain their accounting records
and prepare their financial statements in Japanese yen in accordance with the provisions set forth in theCommercial Code of Japan, the Insurance Business Law of Japan and the Banking Law of Japan and in
conformity with generally accepted accounting principles and practices in Japan, which are different in certain
respects as compared to the application and disclosure requirements of generally accepted accounting principles
and practices in the United States of America. The Company’s overseas subsidiary maintains its accounting
records and prepares its financial statements in conformity with generally accepted accounting principles andpractices prevailing in its country of domicile.
The accompanying consolidated financial statements are prepared based on the consolidated financial
statements of the Company and its subsidiaries (the “Companies”) which are to be filed with the Financial
Services Agency as required by the Insurance Business Law and the Banking Law. For the convenience ofreaders, the preparation is modified in certain respects from the original Japanese disclosed financial information.
2. Principles of Consolidation(1) Scope of consolidation
The number of consolidated subsidiaries: 4Consolidated subsidiaries: Sony Life Insurance Co., Ltd.
Sony Life Insurance (Philippines) Corporation
Sony Assurance Inc.
Sony Bank Inc.
(2) Application of the equity method
Not applicable(3) Fiscal year of consolidated subsidiaries
The financial statements of Sony Life Insurance (Philippines) Corporation are prepared with a fiscal year endof December 31. Appropriate adjustments are made for material transactions between December 31 andMarch 31, the date of the consolidated financial statements. All the other subsidiaries prepare their respective
financial statements with a fiscal year end of March 31, the same as the date of the consolidated financialstatements.
(4) Valuation of assets and liabilities of consolidated subsidiaries
A portion of the assets and liabilities of consolidated subsidiaries are computed at fair value as of therespective dates when the subsidiaries were initially consolidated.
(5) Amortization of goodwill
Goodwill is charged to income directly when incurred.

3. Summary of Significant Accounting Policies(1) Securities
Securities (including commercial paper and other debt purchased and monetary trusts) are stated in thefollowing manner:
Securities held for trading purposes (“trading securities”) are stated at fair value. The cost of securities sold isdetermined by the moving-average method. Held-to-maturity securities are stated at amortized cost(straight-line method) using the moving-average method. Other securities designated as available-for-salesecurities with fair value are stated at fair value at fiscal year end, and its cost of securities sold is determinedby the moving-average method. Other securities designated as available-for-sale securities with no available

7

fair value are stated at amortized cost (straight-line method) or at acquisition cost using the moving-averagemethod. Net unrealized gains and losses on other securities above are reported, net of applicable income
taxes, as a separate component of stockholders’ equity.
(2) Derivative financial instruments
Derivative financial instruments are stated at fair value.
(3) Property and equipment
Primarily, depreciation is computed by the straight-line method for buildings and by the declining-balancemethod for other property and equipment.
(4) Software for internal use
Capitalized software for internal use is amortized using the straight-line method over its estimated useful lifeof five years.
(5) Deferred charges
Stock issuance costs are fully charged to income when incurred.
(6) Reserve for possible loan losses
The reserve for possible loan losses is established in accordance with the each company’s Self-Assessment
Guidelines and Write-offs and Reserve Guidelines. With respect to loans to borrowers subject to bankruptcy,
court-guided rehabilitation or similar legal or formal proceedings, the Comapnies provide a specific reservein the amount of the loan balance less amounts collectable from collateral, guarantees and by other means.
For other loans, the Companies provide a general reserve by applying the historical loan loss ratio determinedover a certain period. Each loan is subject to asset assessment by the operational departments in accordancewith each company’s Self-Assessment Guidelines, and the results of the assessment are reviewed by theinternal audit departments, which are independent from the operational departments, before the reserveamount is finally determined.
(7) Reserve for employees’ bonuses
The reserve for employees’ bonus is provided for the payment of bonuses to employees, in the amount ofestimated bonuses, which are attributable to the current fiscal year.
(8) Reserve for employees’ retirement benefits
The reserve for employees’ retirement benefits is provided for the payment of retirement benefits toemployees, in the amount deemed accrued at the fiscal year end, based on the projected retirement benefit
obligation at the fiscal year end.
(9) Reserve for directors’ retirement benefits
The reserve for directors’ and statutory auditors’ retirement benefits of the Company and the domestic life
insurance subsidiary is provided based on its internal regulations and calculated as the amount that would bepayable if all eligible directors and statutory auditors were to resign at the fiscal year end.
(10) Reserve for price fluctuations
Pursuant to requirements under the Insurance Business Law, the reserve for price fluctuations is provided forprice fluctuations primarily related to stocks, bonds and foreign currency denominated assets which areexposed to losses due to market price fluctuations. This reserve may only be used to reduce deficits arisingfrom price fluctuations on those assets.
(11) Translation of foreign currencies
Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the foreignexchange rates in effect at the fiscal year end.

8

(12) Leases transactions
Finance leases that have not been deemed to transfer ownership of the leased property to the lessees areaccounted for as operating lease transactions.
(13) Hedge accounting
As for the hedge accounting method applied to hedging transactions for interest rate risk generated byfinancial assets and liabilities, the banking subsidiary applies deferred hedge accounting or fair value hedge
accounting. Interest rate swaps are used as hedging instruments to offset fluctuations in interest rates on
fixed-rate loans by identifying the hedged items via their grouping according to their maturity, in accordancewith the “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial
Instruments in the Banking Industry” (Industry Audit Committee of Japanese Institute of Certified Public
Accountants No. 24). Interest rate swaps and others are used as hedging instruments to offset fluctuations in
the fair value of fixed-rate bonds, which are classified as other securities. Both of the above-mentioned
hedging instruments are identified so that their significant terms are nearly identical to those of the hedged
items. Accordingly, such hedges are considered as highly effective, resulting in a substitution for evaluating
the effectiveness of the hedging transactions.
(14) Accounting for consumption taxes
The consumption taxes received or paid by the Company and its domestic subsidiaries, excluding loss
adjustment expenses and operating, general and administrative expenses of the non-life insurance subsidiary,
are not included in income and expenses. Under the Consumption Tax Law of Japan, the consumption taxes
paid on property and equipment, which is not deductible from the consumption taxes received, are deferredas “other assets” and amortized over a five-year period on a straight-line basis, while other non-deductible
consumption taxes are charged as expenses in the period in which the consumption taxes are paid.
(15) Policy reserve
Pursuant to Article 116 of the Insurance Business Law, the domestic life insurance subsidiary maintains a
policy reserve for the fulfillment of future obligations under life insurance contracts, and the policy reserve iscalculated in the following manner.
a. Policies subject to the standard policy reserve apply the method stipulated by the Financial Services
Agency (Ministry of Finance Directive 48, 1996).
b. Policies not subject to the standard policy reserve apply the net level premium method.
(16) Application of consolidated tax provision
The consolidated tax provision, under which Sony Corporation is the parent company, is applied to theCompany and its domestic subsidiaries wholly owned by Sony Corporation.

9