Consolidated Financial Summary
for the six months ended September 30, 2008
Nobember 17, 2008
Company name:Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/index_en.html/)
Stock exchange listings: Tokyo Stock Exchange (code number: 8729)
Representative:
Teruhisa Tokunaka, President and Representative Director
For inquiry:
Masaaki Konoo, General Manager – Corporate Communications & Investor Relations Dept.
(discarding fractional amounts of less than 1 million yen)

1.

Consolidated financial results for the six months ended September 30, 2008
(1) Operating results
Ordinary Revenues
Ordinary Profit
millions of yen

For the six months ended
September 30, 2008
For the six months ended
September 30, 2007%changemillions of yen

Net Income%changemillions of yen%change

420,048( +3.8 )22,469( -18.4 )12,180( -27.1 )404,685( +14.1 )27,551( +54.2 )16,710( +51.8 )Net Income per ShareNet Income per Share(Fully Diluted)

yen

yen

For the six months ended
September 30, 2008
For the six months ended
September 30, 2007

5,600.26-

7,957.23-(2) Financial conditions
Total Assets

Total Net Assets

Net Assets Ratio

Net Assets per Share%yenmillions of yen

millions of yen

As of September 30, 2008

5,304,310

198,974

3.8

91,482.61

As of March 31, 2008

4,977,450

261,627

5.3

120,288.66

Notes: 1. Stockholders’ equity:

As of September 30, 2008:
As of March 31, 2008:¥ 198,974 million¥ 261,627 million

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

2. Dividends
Fiscal year

Interim dividend

Dividend per Share
Annual dividendyen

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

Total

yen

-

3,000.00

yen

3,000.00

3,000.00
3,000.00

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

Ordinary Revenues

Ordinary Profit

Net Income

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

For the year ending
March 31, 2009

884,000

7.5

37,0001(16.9)

21,000(13.4)Net Income per
Share
yen

9,655.17

4. Other Information(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in scopeof consolidation): None
(2) Changes in significant accounting principles, policies and presentation(a) Changes due to revision of accounting standards: Yes(b) Changes due to other reasons: None
(Note) Refer to “Summary of Significant Accounting Policies”, on page xx, for details.
(3) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of September 30, 2008:
2,175,000 shares
As of March 31, 2008:
2,175,000 shares(b) Number of treasury shares
As of September 30, 2008:- shares
As of March 31, 2008:- shares(c) Weighted-average number of shares
For the six months ended September 30, 2008:
2,175,000 shares
For the six months ended September 30, 2007:
2,100,000 shares(Note) Refer to “Per Share Information”, on page 17, for the number of shares used in calculating net income per share.

2

Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
1. Analysis of Operating Performance
During the six months ended September 30, 2008 (April 1, 2008 through September 30, 2008), consolidated
ordinary revenues grew 3.8% compared with the same period of the previous fiscal year, to ¥420.0 billion, owing
to increases in ordinary revenues from all the businesses: life insurance, non-life insurance and banking.
In the life insurance business, ordinary revenues grew 1.7% year on year, to ¥372.1 billion, owing to higher income
from insurance premiums associated with a steady increase in policy amount in force. In the non-life insurance
business, ordinary revenues rose 10.5% year on year, to ¥30.7 billion, due to higher net premiums written, resulting
from strong sales of automobile insurance policies. In the banking business, ordinary revenues grew 53.3% year on
year, to ¥17.7 billion, owing mainly to increased interest income, such as interest income on loans, in line with thebank’s business expansion.
Starting from the six months ended September 30, 2008, the scope of Sony Financial Holdings’ consolidation
included AEGON Sony Life Planning Co., Ltd., (a 50–50 joint venture of Sony Life and AEGON International B.V.
of the Netherlands) as an affiliated company accounted for under the equity method.
Consolidated ordinary expenses increased 5.4% compared with the same period of the previous fiscal year, to¥397.5 billion, owing to increases in ordinary expenses from all the businesses.
In the life insurance business, ordinary expenses increased 3.0% compared with the same period of the previous
fiscal year, to ¥352.0 billion, due to larger amounts of insurance claims and other payments and higher operating
expenses, as well as increased investment expenses resulting from a decrease in the fair market value of securities
stemming from worldwide financial market disruption. In the non-life insurance business, ordinary expenses grew
14.6% year on year, to ¥29.5 billion, owing mainly to increased operating expenses, primarily associated withsystem-related investments, as well as to an increase in the amount of claims paid, led by those resulting fromnatural disasters. In the banking business, higher interest expenses, increased general and administrative expenses,
mostly system-related expenses, and amortization of goodwill pushed up ordinary expenses 64.5% compared withthe same period of the previous fiscal year, to ¥16.6 billion.
As a result, consolidated ordinary profit decreased 18.4% compared with the same period of the previous fiscal
year, to ¥22.4 billion. Broken down by business, ordinary profit from the life insurance business declined 16.4%
year on year, to ¥20.0 billion. Ordinary profit from the non-life insurance business decreased 41.5% year on year, to¥1.1 billion. Ordinary profit from the banking business dropped 22.4% year on year, to ¥1.1 billion.
Extraordinary losses (net) of ¥0.6 billion were recorded, owing mainly to the provision for reserve for pricefluctuations in the life insurance business.
Net income decreased 27.1% compared with the same period of the previous fiscal year, to ¥12.1 billion, reflecting
a decrease in consolidated ordinary profit.

3

2. Segment Information by Business
Ordinary Revenues(Millions of yen)Life insurance business
Non-life insurance
business
Banking business
Subtotal
Corporate andeliminations
Consolidated

For the six months ended For the six months ended
September 30, 2007
September 30, 2008
365,732
372,125

Change (%)+ 1.7

27,79230,713+10.5

11,584405,10917,762420,601

+53.3
+3.8

(424)

(553)

－

404,685

420,048+3.8

Ordinary Profit(Millions of yen)Life insurance business
Non-life insurance
business
Banking business
Subtotal
Corporate andeliminations
Consolidated

For the six months ended For the six months ended
September 30, 2007
September 30, 2008
24,01020,072

Change (%)- 16.4

2,017

1,179

- 41.5

1,483
27,511

1,150
22,402- 22.4- 18.6

40

66

+65.5

27,551

22,469- 18.4

2. Qualitative Information on Consolidated Financial Position
Assets, Liabilities and Net Assets
As of September 30, 2008, total assets amounted to ¥5,304.3 billion, up 6.6% from March 31, 2008. As for major
components of assets, securities, mostly Japanese government bonds, amounted to ¥3,175.8 billion, up 8.4% fromMarch 31, 2008, monetary trusts amounted to ¥870.1 billion, down 2.9% from March 31, 2008, and loans amounted
to ¥514.8 billion, up 13.0% from March 31, 2008.
Total liabilities amounted to ¥5,105.3 billion as of September 30, 2008, up 8.3% from March 31, 2008. As for
major components of liabilities, policy reserve and others amounted to ¥3,601.8 billion, up 4.3% from March 31,
2008, and deposits amounted to ¥1,336.8 billion, up 16.9% from March 31, 2008.
Total net assets amounted to ¥198.9 billion as of September 30, 2008, down 23.9% from March 31, 2008. Dueto a decrease in the fair market value of securities stemming from financial market disruption, net unrealized gains
on other securities (net of taxes) declined ¥68.3 billion from March 31, 2008, to ¥6.5 billion.

43. Qualitative Information on Consolidated Performance Forecasts
SFH’s consolidated financial results forecast for the year ending March 31, 2009 (April 1, 2008 through March 31, 2009)are stated as below. The figures are unchanged from those announced on May 14, 2008.
<Consolidated financial results forecast>
For the full year

Ordinary revenues

Ordinary
profit(Billions of yen)Net
incomeForecast for the year ending March 31, 2009

884.0

37.0

21.0

(Reference)
Actual results for the year ended March 31,
2008

822.1

44.5

24.2

Note: As described below, forecasts of ordinary revenues and ordinary profit from the non-life insurance and the banking
businesses for the year ending March 31, 2009 were changed. However, the forecast of consolidated financial results
remain unchanged since the impact of these changes in the non-life insurance and the banking businesses was notconsidered significant on a consolidated basis.

(Reference)
Forecasts of ordinary revenues and ordinary profit from each business for the year ending March 31, 2009, are as follows.
<Life insurance business>
Ordinary
revenues(Billions of yen)
Ordinary
profit

For the full year
Forecast for the year ending March 31, 2009

793.0

34.0

(Reference)
Actual results for the year ended March 31, 2008

741.3

39.0

<Non-life insurance business>
Owing to such factors as1) Underwriting income during the six months ended September 30, 2008 was higher than originally expected,
2) The loss ratio for the period was within the range originally forecast, and
3) System-related expenses for the year ending March 31, 2009 are not expected to be as high as originally forecast,
SFH changed its forecasts of ordinary revenues and ordinary profit from the non-life insurance business for the year
ending March 31, 2009, from those originally announced on May 16, 2008, as stated below.
(Billions of yen)
Ordinary
Ordinary
revenues
profit
For the full year
Updated forecast for the year ending March 31,
60.7
2.1
2009
Formerly announced forecast
59.8
1.3
for the year ending March 31, 2009
(Reference)
55.6
2.8
Actual results for the year ended March 31, 2008
<Banking business>
As ordinary revenues for the six months ended September 30, 2008 were higher than the original forecast due to steadybusiness expansion, and considering the financial market environment as of September 30, 2008, SFH changed its
forecasts of ordinary revenues and ordinary profit for the banking business for the year ending March 31, 2009, fromthose originally announced on August 13, 2008, as stated below.

5Ordinary
revenues
For the full year
Updated forecast for the year ending March 31,
2009
Formerly announced forecast
for the year ending March 31, 2009
(Reference)
Actual results for the year ended March 31, 2008

(Billions of yen)
Ordinary
profit

33.5

1.4

33.0

2.0

25.9

2.4

The above-mentioned forecast was made based on information currently available to us.
Our consolidated forecast for the year ending March 31, 2009, does not incorporate the potential impact of market
fluctuations on and after October 1, 2008, as it is difficult to forecast the financial market conditions as of March 31, 2009.

4. Information Concerning Significant Subsidiaries
Below, we describe the operating performance for the six months ended September 30, 2008 of SFH’s significant
subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. (Sony Assurance) and Sony Bank Inc.
(Sony Bank). Sony Life, Sony Assurance and Sony Bank each separately announce their own results, which summary
information in English is available on SFH’s website.

■ Sony Life (Non-Consolidated)
On a non-consolidated basis, Sony Life’s ordinary revenues increased 1.7% from the same period of the previous
fiscal year, to ¥371.8 billion, owing to higher income from insurance premiums, associated with a steady increase inpolicy amount in force. Ordinary profit decreased 17.1% year on year, to ¥19.9 billion, due to larger amounts of
insurance claims and other payments and operating expenses, as well as to the deterioration of gains and losses frominvestments, associated with a decrease in the fair market value of securities stemming from worldwide financial
market disruption. Net income dropped 17.0% year on year, to ¥10.8 billion.
Core profit rose 18.5% year on year, to ¥16.5 billion, as a result of an increase mainly in interest and dividends.
Income from insurance premiums grew 2.7% from the same period of the previous fiscal year, to ¥327.0 billion,
associated with a higher policy amount in force. Investment income decreased 3.2% year on year, to ¥43.2 billion,
due to a decrease in income from monetary trusts, net, and gains on sale of securities, despite a rise in interest anddividends, due primarily to a higher balance of securities held, mainly Japanese government bonds. Investment
expenses expanded 264.9% year on year, to ¥32.9 billion, as gains and losses from investments at separate accounts
deteriorated, despite smaller amount of losses on general account, net. As a result, gains from investment, net, for the
total of general and separate accounts declined 71.1% from the same period of the previous fiscal year, to ¥10.3
billion. Insurance claims and other payments increased 7.1% year on year, to ¥125.8 billion. Operating expenses
increased 2.6% year on year, to ¥46.8 billion.
Policy amount in force for the total of individual life insurance and individual annuities grew steadily, to¥32,065.4 billion as of September 30, 2008, up 1.8% from March 31, 2008, and up 3.8% from September 30, 2007.
The lapse and surrender rate for the total of individual life insurance and individual annuities rose 0.10 percentage
point from the same period of the previous fiscal year, to 3.11%. Annualized premiums from total policies as of
September 30, 2008, were up 2.1% from March 31, 2008, and up 4.5% from September 30, 2007, totaling ¥540.9
billion. Of this amount, the figure for third-sector products was up 1.4% from March 31, 2008, and up 3.4% from
September 30, 2007, to ¥124.5 billion.
New policy amount for the total of individual life insurance and individual annuities increased 0.8% from thesame period of the previous fiscal year, to ¥1,894.7 billion. Annualized premiums from new policies decreased 0.9%
year on year, to ¥30.9 billion. Of this amount, the figure for third-sector products dropped 1.2% year on year, to ¥6.5
billion.
Net unrealized gains on securities* dropped 71.9% from March 31, 2008, to ¥35.9 billion. Net unrealized gains onother securities, net of taxes, amounted to ¥21.3 billion, down ¥61.4 billion from March 31, 2008.

6During the six months ended September 30, 2008, Sony Life’s capital was raised by ¥10.0 billion. As a result,common stock and capital surplus as of September 30, 2008, were ¥70.0 billion and ¥5.8 billion, respectively. The
increased capital is intended for use in the start of operations provided that AEGON Sony Life Planning Co., Ltd.
receives a license to conduct life insurance business, as stipulated under the Insurance Business Law of Japan.
As of September 30, 2008, Sony Life’s solvency margin ratio was 1,665.4%, compared with 1,747.9% as ofMarch 31, 2008.
*Net unrealized gains/losses on securities are calculated as the difference between the carrying value before mark-to-market and the fair market value forsecurities with market value, other than trading-purpose securities. (The amount includes “monetary trusts”, but excludes trading-purpose securities.)■ Sony AssuranceSony Assurance posted a 10.5% increase in ordinary revenues compared with the same period of the previous fiscal
year, to ¥30.7 billion, primarily due to strong sales of its mainstay automobile insurance, which raised net premiums
written. Although underwriting income increased, ordinary profit decreased 41.5% year on year, to ¥1.1 billion,
owing primarily to increased operating expenses, mostly system-related expenses, as well as to an increased amountof claims paid, led by those resulting from natural disasters. Net income declined 64.3% compared with the same
period of the previous fiscal year, to ¥0.6 billion.
In terms of performance of insurance underwriting, owing mainly to an increased number of automobile insurance
policies in force, direct premiums written and net premiums written grew 10.5% and 10.5%, year on year, to ¥30.1
billion and to ¥30.3 billion, respectively. In addition to the increased number of policies in force, natural disasters
also influenced net losses paid, causing a 13.2% year on year increase, to ¥14.1 billion. The net loss ratio rose 1.3
percentage points, compared with the same period of the previous fiscal year, to 52.4%, owing mainly to theincreased net losses paid and higher loss adjustment expenses. The net expense ratio rose 0.9 percentage point year
on year, to 26.2%, owing to an increase primarily in system-related expenses, which more than offset operational
efficiency improvements. The combined ratio (the sum of the net loss ratio and the net expense ratio) rose 2.2
percentage points year on year, to 78.6%. As a result, underwriting profits declined 49.8% year on year, to ¥0.8
billion, due mainly to an absence of ¥0.5 billion positive effects recorded in the same period of the previous fiscal
year, when the method of calculating reserves for outstanding claims was changed.
As of September 30, 2008, Sony Assurance’s solvency margin ratio was 1,096.5%, compared with 1,073.9% as ofMarch 31, 2008.

■ Sony Bank (Non-Consolidated)
On a non-consolidated basis, Sony Bank’s ordinary revenues increased 53.3% compared with the same period of theprevious fiscal year, to ¥17.7 billion, as a higher balance of investment assets and other factors, in line with businessexpansion, led to higher interest income and other operating income. Owing to an increase in gross operating profit,
ordinary profit increased 2.4% compared with the same period of the previous fiscal year, to ¥1.6 billion. Net income
decreased to ¥0.9 billion, down 53.6% compared with the same period of the previous fiscal year, when deferred tax
assets were topped up at September 30, 2007.
Gross operating profit increased 20.7% from the same period of the previous fiscal year, to ¥6.6 billion, led by anincrease in net other operating income. With respect to the breakdown of gross operating profit, net interest income
dropped 14.6% year on year, to ¥2.1 billion, due to increased interest on deposits, and net fees and commissions
declined 67.1% year on year, to ¥0.1 billion, owing primarily to a decrease in securities-related commissions. Net
other operating income rose 63.6% from the same period of the previous fiscal year, to ¥4.3 billion, as a result of
increased income from foreign exchange transactions derived from the investment of foreign currency deposits.
General and administrative expenses increased 27.0% year on year, to ¥4.9 billion, due mainly to an increase insystem-related expenses.
As of September 30, 2008, customer assets (the sum of deposits and investment trusts) grew ¥185.8 billion, or
14.9%, from March 31, 2008, to ¥1,433.1 billion, primarily due to an increase in yen deposits. As for the breakdownof customer assets as of September 30, 2008, deposits increased ¥193.8 billion, or 16.9%, from March 31, 2008, to¥1,338.2 billion. Investment trusts decreased ¥7.9 billion, or 7.8% from March 31, 2008, to ¥94.9 billion. Loans
expanded steadily to ¥400.0 billion, up ¥52.9 billion, or 15.3%, from March 31, 2008. As of September 30, 2008, thenumber of accounts was up 60 thousand from March 31, 2008, to 670 thousand accounts.

7

Net unrealized losses on other securities, net of taxes, deteriorated ¥6.5 billion from March 31, 2008, to ¥15.6
billion.
During the six months ended September 30, 2008, Sony Bank’s capital was raised ¥6.0 billion. As a result,common stock and capital surplus as of September 30, 2008, were ¥28.0 billion and ¥18.0 billion, respectively. In
addition, Sony Bank assumed ¥2.0 billion in subordinated debts from outside of the SFH Group. The increased
capital and the subordinated borrowings were intended to ensure Sony Bank’s financial soundness, considering theincreased investment assets along with its business expansion.
As of September 30, 2008, Sony Bank’s non-consolidated capital adequacy ratio (domestic criteria, calculated
based on the standard stipulated by Article 14-2 of the Banking Law of Japan) was 8.88%, compared with 9.15% asof March 31, 2008.
In view of the recent market environment, on November 12, 2008, Sony Bank’s capital was raised a further ¥6.0
billion through the allocation of shares to SFH, with the aim of achieving its sound growth.

5.

Other Information(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying
changes in scope of consolidation)
Not applicable.
(2) Changes in accounting policies, procedures and presentation rules applied in the preparation of the interim
consolidated financial statements
Lease transactions Finance leases that do not transfer ownership of the leased property to the lessee used to be accounted for as
operating leases. As the Accounting Standard Board of Japan (“ASBJ”) Statement No.13 “Accounting Standard forLease Transactions” (March 30, 2007) and ASBJ Guidance No.16 “Guidance for Accounting Standard for Lease
Transactions” (March 30, 2007) became effective for fiscal years beginning on and after April 1, 2008, SFH hasapplied them starting from the six months ended September 30, 2008. The impact of this change to SFH’s
consolidated ordinary profit and net income before taxes is not material.

8Consolidated Financial Statements
1. Consolidated Balance Sheets(Yen in millions)
As of September 30, 2008

As of March 31, 2008

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

50,598433,165
870,118
3,175,813
514,889
83,506
19,161
2,255
16,906
127
5,271
113,739
38,363(445)

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

Total Assets

5,304,310

4,977,450

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

3,601,853
33,7733,562,340
5,740
1,138
690
1,336,849
10,0002,000
17112,356
2,073
12,667277
24,7030706

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

Total Liabilities

5,105,336

4,715,822

9

(Yen in millions)
As of September 30, 2008
Net Assets:
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Net unrealized gains on other securities, net of taxes
Net deferred losses on hedging instruments, net of taxes
Land revaluation, net of taxes
Foreign currency translation adjustments
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

19,900195,277(20,793)
194,3846,566(830)(1,475)330
4,590
198,974
5,304,310

10

As of March 31, 2008
19,900195,277(26,417)
188,759
74,902(1,345)(1,475)786
72,868261,627
4,977,450

2. Consolidated Statements of Income(Yen in millions)
For the six months ended
September 30, 2007

For the six months ended
September 30, 2008

Ordinary Revenues

404,685

420,048

Ordinary Revenues from the Life Insurance Business:

365,346

371,609318,426

326,936

317,998

326,675

427

260

Income from insurance premiums
Insurance premiums
Ceded reinsurance commissions
Investment income

44,77843,583

Interest income and dividends

23,001

27,080

Income from monetary trusts, net

9,202

6,826

Income from trading securities, net

54

788

11,385

8,295

104

403

Gains on derivatives, net-

29

Foreign exchange gains, net

7158

Other investment income

00Gains on sale of securities
Gains on redemption of securities

Gains on separate accounts, net

1,020

-

2,140

1,090

27,77730,70727,47930,371

27,46430,351

15

19

286

323

Interest income and dividends

280

336

Gains on sale of securities

21

5

Other ordinary income
Ordinary Revenues from the Non-life Insurance Business:
Underwriting income
Net premiums written
Interest and dividends on deposits of premiums
Investment income

Gains on redemption of securities

-

0

(15)

(19)

11

13

11,561

17,731

7,447

10,673

Interest income on loans

3,184

4,303

Interest income and dividends on securities

3,244

4,852

Interest income on call loans and bills bought

960

1,420

6

5

Transfer to interest and dividends on deposits of premiums
Other ordinary income
Ordinary Revenues from the Banking Business:
Interest income

Interest income on deposits with banks
Interest income on interest rate swaps

18

6

Other interest income

33

85

Fees and commissions

949

968

Other operating income

3,157

6,022

2,313

4,508

843

1,513

6

67

Gains on foreign exchange transactions
OthersOther ordinary income

11

(Yen in millions)
For the six months ended
September 30, 2007

For the six months ended
September 30, 2008

Ordinary Expenses

377,133

397,579

Ordinary Expenses from the Life Insurance Business:

341,638

351,969

Insurance claims and other payments
Insurance claims
Annuity payments
Insurance benefits
Surrender payments
Other Payments
Reinsurance premiums
Provision for policy reserve and others
Provision for reserve for outstanding claims
Provision for policy reserve
Interest portion of reserve for policyholders’ dividends
Investment expenses
Interest expenses
Losses on sale of securities
Devaluation losses on securities
Losses on redemption of securities
Losses on derivatives, net
Provision for reserve for possible loan losses
Depreciation of real estate for rent and others
Other investment expenses
Losses on separate accounts, net
Operating expenses

117,482
28,7472,447
13,562
70,572
1,062
1,091
164,683
164,676
7
9,036
9
455
1,751
10
2,582
9
1,552
2,664
45,660125,841
30,771
2,852
15,20875,095849
1,063
140,852
1,034
139,796
21
32,970
9
1,351
2,997
21
12
1,441
3,024
24,111
46,855

Other ordinary expenses
Ordinary Expenses from the Non-life Insurance Business:

4,775
25,5775,450
29,314

Underwriting expenses

19,07921,901

Net losses paid
Loss adjustment expenses
Net commission and brokerage fees
Provision for reserve for outstanding claims
Provision for underwriting reserve
Other underwriting expenses
Investment losses
Losses on sale of securities
Devaluation losses on securities
Operating, general and administrative expenses

12,478
1,544
299
1,173
3,584
3
3
6,482

14,124
1,771
354
1,084
4,565
0
14
14
7,395

12

4

Other ordinary expenses

12(Yen in millions)
For the six months ended
September 30, 2007
Ordinary Expenses from the Banking Business:

For the six months ended
September 30, 2008

9,917

16,294

Interest expenses

4,954

8,542

Interest expenses on deposits
Interest expenses on call money and bills soldInterest on borrowed money
Interest expenses on interest rate swaps
Fees and commissions

4,639
57
257
486

8,151
29
12
348
603

Other operating expenses

479

1,642

3,927

5,375

70

131

27,551

22,4691

3

Gains on disposal of fixed assets

00Reversal of reserve for price fluctuations-

2

Others

1

-

1,689

678

22

105

General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains

Extraordinary Losses
Losses on disposal of fixed assets
Impairment losses

125

0

1,541

568

-

4

966

1,688

Income Before Income Taxes

24,896

20,105

Income Taxes

7,952

7,924

- Current

10,835

9,026- Deferred(2,883)(1,101)(233)-

16,71012,180

Provision for reserve for price fluctuations
OthersProvision for Reserve for Policyholders’ Dividends

Minority Interests
Net Income

133. Consolidated Statements of Changes in Net Assets(Yen in millions)
For the six months ended
September 30, 2007

For the six months ended
September 30, 2008

Shareholder’s Equity
Common stock
Balance at the end of the previous period

5,500

19,900

-

-

5,500

19,900180,877

195,277--

180,877

195,277(44,173)(26,417)

Dividends from surplus(6,500)(6,525)

Net income

16,71012,180-(31)

Total changes during the period

10,2105,624

Balance at the end of the current period(33,962)(20,793)

142,203

188,759

Dividends from surplus(6,500)(6,525)

Net income

16,71012,180-(31)

Total changes during the period

10,2105,624

Balance at the end of the current period

152,414

194,384

Changes during the period
Total changes during the period
Balance at the end of the current period
Capital surplus
Balance at the end of the previous period
Changes during the period
Total changes during the period
Balance at the end of the current period
Retained deficits
Balance at the end of the previous period
Changes during the period

Change of scope of equity method

Total shareholder’s equity
Balance at the end of the previous period
Changes during the period

Change of scope of equity method

14

(Yen in millions)
For the six months ended
September 30, 2007

For the six months ended
September 30, 2008

Valuation and Translation Adjustments
Net unrealized gains on other securities, net of taxes
Balance at the end of the previous period

125,043

74,902

Net changes of items other than shareholder’s equity

5,125(68,336)

Total changes during the period

5,125(68,336)

Balance at the end of the current period

130,169

6,566

(408)

(1,345)

Net changes of items other than shareholder’s equity

48

514

Total changes during the period

48

514

Balance at the end of the current period

(360)

(830)

(1,475)(1,475)--

Balance at the end of the current period
Foreign currency transaction adjustments(1,475)(1,475)

Balance at the end of the previous period

390

786

Net changes of items other than shareholder’s equity

310

(456)

Total changes during the period

310

(456)

Balance at the end of the current period

700

330

123,549

72,868Net changes of items other than shareholder’s equity

5,484(68,277)

Total changes during the period

5,484(68,277)

Balance at the end of the current period

129,034

4,590

Changes during the period

Net deferred losses on hedging instruments, net of taxes
Balance at the end of the previous period
Changes during the period

Land revaluation, net of taxes
Balance at the end of the previous period
Changes during the period
Total changes during the period

Changes during the period

Total valuation and translation adjustments
Balance at the end of the previous period
Changes during the period

15

(Yen in millions)
For the six months ended
September 30, 2007

For the six months ended
September 30, 2008

Minority Interests
Balance at the end of the previous period

4,425

-

Net changes of items other than shareholder’s equity

157-

Total changes during the period

157-

Balance at the end of the current period

4,582

-

270,179

261,627

Dividends from surplus(6,500)(6,525)

Net income

16,71012,180-(31)

Net changes of items other than shareholder’s equity

5,641(68,277)

Total changes during the period

15,851(62,653)

Balance at the end of the current period

286,030

198,974

Changes during the period

Total Net Assets
Balance at the end of the previous period
Changes during the period

Change of scope of equity method

16

4. Segment Information
For the six months ended September 30, 2007
Life insurance
business
Ordinary revenues:
External customers
Intersegment
Total
Ordinary expenses
Ordinary profit

365,346386
365,732
341,72124,010(Yen in millions)Non-life
insurancebusiness

Bankingbusiness

27,777
14
27,792
25,775
2,017

11,561
23
11,584
10,100
1,483

Total

404,685424
405,109377,597
27,511For the six months ended September 30, 2008
Life insurance
business
Ordinary revenues:
External customers
Intersegment
Total
Ordinary expenses
Ordinary profit

371,609516
372,125
352,053
20,072Elimination

Consolidated

(424)
(424)
(464)
40

404,685404,685
377,133
27,551(Yen in millions)Non-life
insurancebusiness

Bankingbusiness

30,707
5
30,71329,533
1,179

17,73130
17,762
16,611
1,150

Total

420,048553
420,601
398,198
22,402Elimination

Consolidated

(553)
(553)
(619)
66

420,048
420,048397,579
22,4695. Per Share Information
Net income per share is calculated based on the weighted-average number of shares of common stock outstanding during
the period. For the six months ended September 30, 2007 and 2008, net income per share was ¥7,957.33 and ¥5,600.26,
respectively. There were no potential dilutive securities. Net assets per share, calculated based on the number of shares ofcommon stock outstanding as of March 31, 2008 and September 30, 2008, were ¥120,288.66 and ¥91,482.61, respectively.
The basis for this calculation for the six months ended September 30, 2007 and 2008 is net income of ¥16,710 million and¥12,180 million, the entire amount of which is applicable to common shares. The weighted-average number of shares
outstanding for the six months ended September 30, 2007 and 2008 were 2,100,000 shares and 2,175,000 shares,
respectively.

SFH’s consolidated results* are prepared in accordance with accounting principles and practices generally accepted in Japan. As such, these figures differ insignificant respects from financial information reported by SFH’s parent company, Sony Corporation, which prepares its financial statements in accordancewith accounting principles and practices generally accepted in the United States.
* The scope of consolidation for SFH’s consolidated results for the six months ended September 30, 2007 included Sony Financial Holdings Inc., Sony Life Insurance Co., Ltd.,Sony Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, and Sony Bank Securities Inc. The scope of consolidation for SFH’s consolidated results forthe six months ended September 30, 2008 also included AEGON Sony Life Planning Co., Ltd. as an affiliated company accounted for under the equity method.

On October 29, 2008, Sony Corporation announceｄ its consolidated financial results for the second quarter ended September 30, 2008. SFH Group
companies constitute the majority of Sony Group’s Financial Services segment. However, the scope of Sony Group’s Financial Services segment differs fromthe scope of SFH’s consolidated results. For the scope of Sony Group’s Financial Services segment, please refer to the earnings releases announced from Sony
Corporation on October 29, 2008.
Forward-looking statements may include—but are not limited to—statements using words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,”“possibility” and similar words that describe future operating activities, financial performance, events or conditions. Forward-looking statements, whether spoken or written, are basedon judgments made by the management of the SFH Group based on information that is currently available to it. As such, forward-looking statements are subject to various risks anduncertainties, and actual results may vary substantially from those expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue relianceon forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking statements in light of new information, future events or other findings.

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

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