Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2009

Sony Financial Holdings Inc.
February 12, 20100

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the SonyFinancial Holdings Group (the “SFH Group”). Any statements contained herein that pertain to future operating performance andthat are not historic facts are forward-looking statements. Forward-looking statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,” “expect,” “forecast,” “predict,” “possibility” 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, theseforward-looking statements are subject to various risks and uncertainties, and actual business results may vary substantially fromthe forecasts expressed or implied in forward-looking statements. Consequently, investors are cautioned not to place undue
reliance on forward-looking statements. The SFH Group disclaims any obligation to revise forward-looking statements in light of
new information, future events or other findings. The information contained in this presentation does not constitute or form part ofany 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.

1

Disclaimer

1Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2009
(Billions of yen)(For the nine months)

FY08.3Q

FY09.3Q

Ordinary
revenues

565.8

647.9

+82.1

+14.5%

Ordinary profit

30.3

54.8

+24.5

+80.7%

Ordinary
revenues

46.1

50.9

+4.8

+10.4%(Billions of yen)

Ordinary
revenues+13.2%

Ordinary profit

720.7

636.6

Life insurance
business
Non-life
insurancebusiness+77.3%

58.3
Bankingbusiness

Corporate andelimination

32.9

Ordinary profit

1.4

1.8

+0.3

+24.2%

Ordinary
revenues

25.5

22.9

(2.5)

(10.1%)

Ordinary profit

0.9

1.5

+0.5

+59.7%

Ordinary
revenues

(0.8)

(1.1)

(0.2)

－

Ordinary profit

Consolidated

FY08.3Q

FY09.3Q

Change

0.0

0.0

(0.0)

(15.4%)

Ordinary
Revenues

636.6

720.7

+84.0

+13.2%

Ordinary profit

32.9

58.3

+25.4

+77.3%Net income

20.5

33.8

+13.2

+64.5%（For the nine months）(Billions of yen)
Consolidated

Change from09.3.3108.12.31

09.3.3109.12.31

Total assets

5,262.2

5,313.6

5,804.3+490.6+9.2%

Net assets

208.4

204.8

261.0

+56.1

+27.4%

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

2

During the nine months ended December 31, 2009, consolidated ordinary
revenues grew 13.2% compared with the same period of the previous
fiscal year, to ¥720.7 billion, owing to increases in ordinary revenues fromthe life insurance business and the non-life insurance business, despite adecrease from the banking business.
Consolidated ordinary profit increased in all businesses, up 77.3% year on
year, to ¥58.3 billion.
Consolidated net income increased 64.5% year on year, to ¥33.8 billion.

2

Highlights of Consolidated Operating Performancefor the Nine Months Ended December
December 31, 2009

 Life insurance： Ordinary revenues increased year on year, due to higher income frominsurance premiums associated with an increased policy amount in force, as well as increases
in investment income in a relatively favorable financial market environment. Ordinary profit rosedue primarily to increased insurance premiums, higher gains from investment, net, on generalaccount assets and a change from provision into reversal of policy reserve for minimum
guarantee for variable life insurance. Contingency reserve and reserve for price fluctuations
were partially reversed in the same period of the previous fiscal year, despite provisions for theboth reserves recorded for this period.
 Non-life insurance: Ordinary revenues increased year on year, owing to increases in net

premiums written, reflecting a growing number of its mainstay automobile insurance policies.
Ordinary profit increased due mainly to an increase in premium income and a decline in the net
expense ratio which offset an increase in the net loss ratio.
 Banking business: Despite a decrease in ordinary revenues year on year, affected by global

reductions in interest rates, ordinary profit increased, due to increases in net interest income,bolstered primarily by decreases in interest expenses and the growing balance of mortgage
loans.
 Consolidated ordinary revenues, ordinary profit, and net income grew year on year, amounted

to ¥720.7 billion, up 13.2%; ¥58.3 billion, up 77.3%; and ¥33.8 billion, up 64.5%, respectively.

33Highlights of Operating Performance:
Sony Life (Non(Non-Consolidated)
Ordinary revenues+14.5%(Billions of yen)
Ordinary profit

647.7

565.5

（For the nine months）(Billions of yen)

FY08.3Q

FY09.3Q

565.5

647.7

+82.1

Income from insurance premiums

489.6

512.1

+22.5

+4.6%

Investment income

72.2

130.2

+57.9

+80.3%

Interest income and dividends

40.8

50.9

+10.1

+24.8%

Income from monetary trusts, net

3.9

13.2

+9.2

+234.3%

Gains on sale of securities

20.8

14.5

(6.3)

(30.3%)

－

50.3

+50.3

-

535.3

592.7

+57.3

+10.7%

Insurance claims and other payments

198.3

204.7

+6.4

+3.3%

Provision for policy reserve and others

153.9

290.0

+136.0+88.4%

Investment expenses(84.3%)

Ordinary revenues

54.9

Gains on separate accounts, net+82.1%

Ordinary expenses

30.2

FY08.3Q

FY09.3Q（For the nine months）+14.5%

104.1

16.3

(87.8)

Losses on sale of securities

12.2

8.0

(4.1)

(34.2%)

Devaluation losses on securities

17.3

－

(17.3)(100.0%)Losses on separate accounts, net

66.6

－

(66.6)(100.0%)

69.7

70.9

+1.2

+1.9%

30.2

54.9

+24.7

+82.1%

32.1

+10.0

+45.5%

Operating expenses

Sony Life

Ordinary profit

Ordinary revenues and ordinary profit increased year onyear.
Income from insurance premiums increased due to anincreased policy amount in force.
Investment income rose.
Ordinary profit rose due to increased insurance
premiums, higher gains from investment, net, on generalaccount assets and a change from provision into reversalof the policy reserve for minimum guarantee for variable
life insurance.

Net income

22.0(Billions of yen)

08.12.31

09.3.3109.12.31

Change from 09.3.31

Securities

2,437.4

2,819.6

3,294.1+474.5

Policy reserve

3,527.7

3,592.3

3,880.7+288.4+8.0%

Total net assets

149.6

140.7

184.2

+43.5

+30.9%+457.3%Net unrealized gains/losses onother securities

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

ChangeSeparate account assets+16.8%

24.6

4.0

22.3

+18.3

3,758.7

3,810.9

4,143.4+332.5

+8.7%

273.6

275.1

351.8

+76.6

+27.9%

4Highlights of Sony Life’s operating performance (non-consolidated basis) are shown here.
Sony Life’s ordinary revenues increased 14.5% year on year, to ¥647.7 billion, due tohigher income from insurance premiums associated with an increased policy amount inforce, as well as increases in investment income.
Income from insurance premiums grew 4.6% from the same period of the previous fiscal
year, to ¥512.1 billion, associated with a higher policy amount in force.
Investment income increased 80.3% year on year, to ¥130.2 billion, due mainly to anincrease in gains on separate accounts, net, driven by rising stock prices, and higher
interest income and dividends in line with the growing balance of ultralong-term bonds.
Ordinary expenses increased 10.7% year on year, to ¥592.7 billion, due primarily to anincreased provision for policy reserve and others, reflecting a recovery in investment
performance in separate accounts, as well as the provision for contingency reserve froma reversal amount. Investment expenses decreased 84.3% year on year, to ¥16.3 billion,
as losses on separate accounts, net, for the same period of the previous fiscal year
turned into gains.
Ordinary profit increased 82.1% year on year, to ¥54.9 billion, due primarily to increased
insurance premiums, higher gains from investment, net, on general account assets, and areversal of the policy reserve for minimum guarantee for variable life insurance.
Extraordinary losses of ¥4.4 billion were recorded during the nine months ended
December 31, 2009, due mainly to the provision of a reserve for price fluctuations, while
extraordinary gains were recorded owing to a partial reversal of the reserve for pricefluctuations in the same period of the previous fiscal year.
As a results, net income increased 45.5% year on year, to ¥32.1 billion.

4

Overview of Performance:
Sony Life (Non(Non-Consolidated)(For the nine months)(Billions of yen)

FY08.3Q

FY09.3Q

ChangeNew policy amount

2,993.6

3,020.4+0.9％

Lapse and surrenderamount

1,557.9

1,725.4+10.7%

Lapse and surrender rate

4.95%

5.31%

+0.36pt

Policy amount in force

32,406.6

33,249.4+2.6%

Annualized premiums
from new policies

47.7

50.6

+6.1%

10.3

12.2

+18.4%

546.1

566.2

+3.7%

126.0

131.5

+4.4%

Of which, third-sector products

Annualized premiums
from insurance in force
Of which, third-sector products(For the nine months)(Billions of yen)

FY08.3Q

FY09.3Q(Reasons for changes)
 Increased, reflecting the impact of individual customers
conversion to more reasonably priced insurance
products. This included a discount rider for family
income insurance launched in November 2009 for
nonsmokers and other people in excellent health.

 Increased substantially in third-sector products, owing
mainly to favorable sales of cancer hospitalization
insurance, launched in April 2009.

ChangeGains from investment,net (General account)

34.7

63.4

Core profit

22.6

45.1

+99.4%

Negative spread

16.3

12.2

(25.2%)+82.6%

Notes:*1 Figures for new policy amount, lapse and surrender amount, lapse and surrender rate, policy amount in force,
annualized premiums from new policies and annualized premiums from insurance in force are calculated as the totalof individual life insurance and individual annuities.
*2 The lapse and surrender rate is calculated without offsetting policies that are reinstated.

 Increased due primarily to increased interest income
and dividends and higher gains on sale of securities
 Rose owing primarily to increases in income frominsurance premiums, increased interest income anddividends, as well as a change from provision into
reversal of the policy reserve for minimum guarantee
for variable life insuranceLine item amounts are truncated below ¥100 million;
percentage change figures are rounded.

5

Here is an overview Sony Life’s performance.

5

Sony Life Operating Performance (1)New Policy Amount

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)（For the nine months）(Trillions of yen)
New policy amount4（For the nine months）(Thousands of policies)

Number of new policies

413

401

+6.6%

(Billions of yen)

Annualized premiums from new policies
Of which, third-sector products

440
450

60.0

400

3.5
3

3.02

2.99

2.91

+0.9%

350
300

50.0

48.3

47.7

+6.1%

50.6

40.0

2.5
250

30.0

2

200

1.5

150

1

20.0

+18.4%

100

10.0
0.5

50

0

0

FY07.3Q

FY08.3Q

FY09.3Q

Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

10.3

10.3

FY07.3Q

FY08.3Q

12.2

0.0
FY09.3Q

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

6(Left-hand graph)
New policy amount for the total of individual life insurance and individual
annuities increased 0.9% from the same period of the previous fiscal year,to ¥3.02 trillion, owing mainly to a increase in sales of new discount rider
for family income insurance launched in November 2009 for nonsmokers
and other people in excellent health. Although new policy amount for six
months ended September 30, 2009 decreased year on year, the year-onyear growth rate for this period has improved with an increase in sales
resulting from the above-mentioned product launch.
The number of new policies increased 6.6% year on year, to 440 thousand
policies.
(Right-hand graph)
Annualized premiums from new policies increased 6.1%, to ¥50.6 billion.
Of this amount, the figure for third-sector products was ¥12.2 billion, up
18.4% year on year, owing mainly to favorable sales of cancer
hospitalization insurance, which commenced sales in April 2009.

6

Sony Life Operating Performance (2)Policy Amount in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)(Trillions of yen)(Billions of yen)

(Millions of policies)

Policy amount in force
+6.0%

4.66

Number of policies in force

4.70
+4.9%

40

+2.6%

32.4

32.5

+2.3%

5.0

600

4.0

500

4.94
33.2

30

Annualized premiums from insurance in force
Of which, third sector
566.2
+3.7%
547.8
546.1

+3.3%

400

3.0
300

20
2.0
200

10

+4.4%

1.0
100

0

0.0
08.12.31

09.3.3109.12.31

Line item amounts are truncated below ¥100 billion; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

126.0

126.6

08.12.31

09.3.31

+3.9%

131.5

0
09.12.31

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

7(Left-hand graph)
Policy amount in force for the total of individual life insurance and individual
annuities grew steadily, to ¥33.2 trillion as of December 31, 2009, up 2.6%
from December 31, 2008, and up 2.3% from March 31, 2009. The numberof policies in force increased 6.0% year on year, and up 4.9% from March
31, 2009, to 4.94 million policies.
(Right-hand graph)
Annualized premiums from total policies as of December 31, 2009, were up
3.7% from December 31, 2008, and up 3.3% from March 31, 2009, totaling¥566.2 billion. Of this amount, the figure for third-sector products was up
4.4% from December 31, 2008, and up 3.9% from March 31, 2009, to¥131.5 billion.

7

Sony Life Operating Performance (3(3)
Lapse and Surrender Rate*

Solvency Margin Ratio（Individual Life Insurance + Individual Annuities）＜Full Year, 1H, 9M (For the nine months)＞

(%)

(%)

3,000
Lapse and surrender rate (based on policy amount, full year)10

2,570.9

Lapse and surrender rate (based on policy amount, 1H）
Lapse and surrender rate (based on policy amount, 9M）

2,500+510.4pt

1,995.08

6.12+0.36pt

6

4.61

4.95

3.01

3.11

4

2,060.5

2,000

6.79
5.31

1,500

3.27

2

1,000

500

0

0
FY07

FY08

FY09

08.12.31

09.3.3109.12.31*Figures for lapse and surrender rates are calculated without offsetting policies that are reinstated.

8(Left-hand graph)
The lapse and surrender rate for the nine months ended December 31,
2009 rose 0.36 percentage point from the same period of the previous
fiscal year, to 5.31%, reflecting the impact of individual customers
conversion to more reasonably priced insurance products. This included a
discount rider for family income insurance launched in November 2009 for
nonsmokers and other people in excellent health.
(Right-hand graph)
As of December 31, 2009, Sony Life’s solvency margin ratio was
2,570.9%, up 510.4 percentage points from March 31, 2009, due mainly toincreases in net unrealized gains on other securities, net of taxes.
Sony Life will continue maintaining its financial soundness.

8

Sony Life Operating Performance (4(4)
Income from Insurance Premiums

Ordinary Profit(For the nine months)(For the nine months)(Billions of yen)(Billions of yen)

600

500

512.1

489.6

479.7

+4.6%
400

60

54.9

50

+82.1%

40

32.8
300

30.2

30

200

20

100

10

0

0
FY07.3Q

FY08.3Q

FY09.3Q

FY07.3Q

FY08.3Q

FY09.3Q

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

9(Left-hand graph)
Income from insurance premiums grew 4.6% from the same period of theprevious fiscal year, to ¥512.1 billion, associated with a higher policy
amount in force.
(Right-hand graph)
Ordinary profit increased 82.1% year on year, to ¥54.9 billion as stated onslide 4.

9

Sony Life Operating Performance (5)Core Profit

Negative Spread(For the nine months)(For the nine months)(Billions of yen)(Billions of yen)

50

45.1

30

45

25

40

21.0

+99.4%

35

20

30

16.3

25
20

15

22.6

(25.2%)

12.2

19.8
10

15
10

5

5

0

0
FY07.3Q

FY08.3Q

FY09.3Q

FY07.3Q

FY08.3Q

FY09.3Q

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

10(Left-hand graph)Core profit rose 99.4% year on year, to ¥45.1 billion, owing mainly to anincrease in income from insurance premiums and higher interest income
and dividends, as well as a change from provision into reversal of policy
reserve for minimum guarantee for variable life insurance.
(Right-hand graph)
In line with the increase in interest and dividend income, the negative
spread narrowed 25.2% year on year, to ¥12.2 billion.

10

Sony Life Operating Performance (6)Number of Lifeplanner Sales Employees

Number of Independent Agents(Agents)(Employees)

2,500
2,151

3,982

4,000
3,891
3,779

3,812

2,090

2,112

2,000

2,089

(23)

+91
1,500

3,500

1,000

500

0
3,000

0
08.3.3108.12.31

09.3.3109.12.31

08.3.3108.12.31

09.3.3109.12.31

11(Left-hand graph)
The number of Lifeplanner sales employees as of December 31, 2009,
was 3,982, up 91 from March 31, 2009.
(Right-hand graph)
The number of independent agents decreased 23 from March 31, 2009, to
2,089.

11

Sony Life Operating Performance (7)Breakdown of General Account Assets (based on the real status)
Amounts for individual items included in monetary trusts (Japanese government and corporate bonds, CBs, Japanese stocks and other)have been broken down into their original investment categories.
Japanese government and corporate
bonds: Continuously accumulating
ultralong-term bonds from FY08.

Japanese government andcorporate bonds (excl. CBs)
CBs
66.3%

75.1%

Japanese stocks↓<Lengthening
assets duration><L
08.3.31

8.7 years

09.3.3113.6 years

09.12.31 16.5years

83.1%
Foreign securities
Policyholder loans

Held-to-maturity securities as of 09.12.31
amounted to ¥2,007.4 billion(52.9% of general account assets)

Real estate

10.5%
2.4%
4.3%
3.4%
2.3%
6.6%
4.1%

8.4%
1.7%
3.5%
3.4%
2.3%
1.6%
3.9%

08.12.31

09.3.3109.12.31

Total 3,485.1

3,535.7

3,791.6(Billions of yen)

2.1%
1.8%
2.5%
3.3%
2.1%
2.7%
2.5%

Cash and call loansCBs: Consistently decreasing remainderof convertible bonds through sale andredemption

OtherJapanese stocks: Maintaining thecurrent ratio of stock holding*The breakdowns shown at left are different from those shown in
Chapter 2, “Status of Investment of Assets (General Account
Assets)” on page 3 of the “Summary Information on Sony Life’s
Financial Results for the Nine Months Ended December 31, 2009,”
announced by Sony Life.

12

Here is a breakdown of Sony Life’s general account assets as ofDecember 31, 2009, compared with those as of December 31, 2008, andMarch 31, 2009.
Amounts for individual items included in monetary trusts (Japanese
government bonds and corporate bonds, CBs, Japanese stocks andother) have been broken down into their original investment categories,
aiming at showing the portfolio breakdown based on the real status.
Sony Life has continued increasing its investment in ultralong-term bonds,
mainly Japanese government and corporate bonds since FY2008.
Japanese government and corporate bonds excluding convertible bonds
account for 83.1% of general account assets as of December 31, 2009.
As a result of lengthening assets duration, it became 16.5 years as ofDecember 31, 2009.
Sony Life strives to continue increasing its investment in ultralong-termbonds. In the forth quarter of this fiscal year, we will maintain this policy.

12

Sony Life Operating Performance (8(8)
Net Unrealized Gains/Losses on Available-for-Sale Securities with Market Value(Billions of yen)Japanesegovernment andcorporate bonds

08.12.31

09.3.3109.12.31

Change from09.3.31

58.8

26.9

45.2

+18.2

(22.6)(21.2)

0.9+22.1

Japanese stocks

3.3

1.4

6.5

+5.1

Foreign securities

(6.1)

(3.6)

(0.7)

+2.9

Other securities

(0.0)

(0.5)

1.2

+1.7

Total

56.0

24.2

52.3

+28.1

CBs

Notes:
1) Line item amounts are truncated below ¥100 million.
2) Amounts above include those categorized as “monetary trusts.” but excludes trading-purpose securities and unrealized losses on held-to-maturity securities of ¥7.9 billion.
3) As of December 31, 2009, the weighted-average fair value of convertible bonds held by Sony Life was ¥98.0. The average remaining period was 2.2 years.
(In the event that Sony Life executes put options, the average remaining period would be 1.7 years.)

13

Here, you see net unrealized gains/losses on available-for-sale securities
with market value in the general account assets.

13

Highlights of Operating Performance:
Sony Assurance(Billions of yen)

Ordinary profit

Ordinary revenues(For the nine months)(Billions of yen)

+10.4%

46.1

FY08.3Q

ChangeOrdinary revenues
Underwriting income+24.2%

1.4
FY08.3Q

FY09.3Q50.9

1.8
FY09.3Q(For the nine months)

Sony AssuranceOrdinary revenues and ordinary profit increased,
year on year.
Ordinary revenues amounted to ¥50.9 billion, up
10.4% year on year. Net premiums written
amounted to ¥50.3 billion, up 10.6% year on year,
owing to an increase in the number of policies inforce for mainstay automobile insurance.
Ordinary profit amounted to ¥1.8 billion, up 24.2%
year on year, due mainly to the increase in ordinary
revenues and a decline in the net expense ratio.

46.1

50.9

+4.8

+10.4%

45.6

50.4

+4.8

+10.5%

Investment income

0.5

0.5

+0.0

+1.5%

Ordinary expenses

44.6

49.1

+4.4

+10.0%

Underwriting
expenses

33.5

37.1

+3.6

+11.0%

Investment expenses

0.1

0.0

(0.1)

(88.7%)

Operating, generaland administrative
expenses

11.0

11.9

+0.8

+8.0%

Ordinary profit

1.4

1.8

+0.3

+24.2%Net income

(1.9)

1.1

+3.1

-

Change from09.3.3108.12.31

09.3.3109.12.31

Underwriting reserves

49.0

50.7

57.0

+6.2

+12.4%

Total net assets

13.3

13.6

15.0

+1.3

+10.1%

(0.1)

(0.1)

0.0

+0.1

-

82.2

86.6

94.7

+8.0

+9.3%

(Billions of yen)

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

Total assets

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

14

Sony Assurance posted a 10.4% increase in ordinary revenues comparedwith the same period of the previous fiscal year, to ¥50.9 billion, due toincreased net premiums written, as the number of insurance policies inforce grew for strong sales of new policies in its mainstay automobile
insurance.
Ordinary profit increased 24.2% year on year, to ¥1.8 billion, owing mainly
to the increase in net premiums written and a decline in the net expense
ratio, despite a higher net loss ratio.
Net income amounted to ¥1.1 billion, compared with a net loss of ¥1.9
billion in the previous term, due mainly to losses on disposal of fixed
assets of ¥3.8 billion in the same period of the previous fiscal year.

14Overview of Performance:
Sony Assurance(Billions of yen)(For the nine months)

FY09.3Q

FY08.3Q

ChangeDirect premiums written

45.3

50.1

＋10.5%Net premiums written

45.5

50.3

＋10.6%Net losses paid

22.0

25.3

＋15.0%

Underwriting profit

1.0

1.3

＋26.1%Net loss ratio

54.4%

56.3%

+1.9ptNet expense ratio

25.9%

25.5%

(0.4pt)Combined ratio

80.3%

81.8%

+1.5ptNet expense ratio is equal to the ratio of total underwriting costs to net premiums written.
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to net premiums written.

Change from 09.3.31

08.12.31

09.3.3109.12.31

1.12 million

1.15 million

1.25 million+0.10 million

+8.4%

-

993.0%

1,031.7%-+38.7pt

NumberNumber of policies in force
Solvency margin ratio%

The number of policies in force is the total of automobile insurance and medical and cancer insurance, which accounts for 99% of net premiums written.
Line item amounts are truncated below ¥ 100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

15

Here is an overview of Sony Assurance’s performance.

15

Sony Assurance’
Assurance’s Underwriting Performanceby Type of Policy
Direct Premiums Written(Millions of yen)

FY08.3Q

Net Premiums Written(Millions of yen)

ChangeFY09.3Q

265

Fire(For the nine months)

215(18.9％)Fire(For the nine months)

FY08.3Q

13

FY09.3Q

Change9(24.7％)

-

-

-

32

(2)

(106.6％)

Personal accident

4,959

5,187

＋4.6％

Personal accident

5,159

5,360

＋3.9％

Voluntary automobile

40,152

44,731＋11.4％

Voluntary automobile

39,99744,557＋11.4％

378

468＋23.7％

45,58050,393＋10.6％

MarineCompulsory
automobile liability
Total

-

-

-

45,37750,133＋10.5％Net losses paid
(Millions of yen)
Fire

0

0

＋3.5％

11

2

(79.7％)

1,106＋10.5％

Voluntary automobile

20,71523,891＋15.3％

363

399

＋9.9％

25,399＋15.0％

Total

Total

ChangeFY09.3Q

1,001

Compulsory
automobile liability

Compulsory
automobile liability(For the nine months)

FY08.3Q

Personal accident

MarineMarine22,092

Line item amounts are truncated below ¥ 1 million;
Percentage change figures are rounded.

16

This slide shows direct premiums written, net premiums written and net
claims paid by type.

16

Sony Assurance Operating Performance (1)Net Premiums Written andNumber of Policies in Force

Ordinary Profit(For the nine months)(For the nine months)(Billions of yen)

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

70

1.25

65

1.12

60

+11.6%

50.3

55
50
45
40

(Millions of policies)

0.4

45.5

+10.6%

1.4

3

1.2

2.5

0.4

5.3

5.1

1.0
2

+24.2%
0.8
1.5

35

20

1.8

1.4

0.6

30
25

(Billions of yen)

39.9

44.5

1

0.4

15
0.2

10

0.5

5
0.0

0
FY08.3Q

FY09.3Q

The number of policies in force is the total of automobile insurance and medical
and cancer insurance policies, which account for 99% of net premiums written.
More than 90% of personal accident insurance is medical and cancer insurance.
Line item amounts are truncated below ¥100 million; numbers of policies aretruncated below 10,000 policies; percentage change figures are rounded.

0

FY08.3Q

FY09.3Q

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

17(Left-hand graph)
Number of policies in force for the total of accident insurance suchautomobile insurance and medical and cancer insurance increased steadily,rising 11.6% year on year, to 1.25 million policies.
Net premiums written posted an 10.6% year-on-year increase, to ¥50.3
billion.
(Right-hand graph)
Ordinary profit rose 24.2% year on year, to ¥1.8 billion, owing mainly to theincrease in ordinary revenues and a decline in the net expense ratio.

17

Sony Assurance Operating Performance (2)Reference
Combined Ratio(Net Expense Ratio + Net Loss Ratio)

Net Expense Ratio + Earned/Incurred Loss Ratio
(%)

100

Earned/incurred loss ratio
Net expense ratio(%)+0.6pt

89.0

90.2

91.0

90.4

80

80
+1.0pt

60
62.3

64.5

63.5

65.5

Net loss ratio
Net expense ratio

80.3

60
53.5

81.7

55.0

+1.5pt81.8+1.9pt

56.3

80.3

54.4

40

40

20

100

26.7

26.7

FY07

FY08

20

25.9 (0.4pt) 25.5

26.7

26.7

FY07

FY08

25.9 (0.4pt) 25.5

00FY08.3Q

FY09.3Q

FY08.3Q

FY09.3Q

Earned/incurred loss ratio is equal to the ratio of the sum of net losses paid, loss
adjustment expenses and accumulation in provision for reserve for outstanding
losses to earned premiums.
*Note that earthquake insurance and compulsory automobile liability

Net expense ratio is equal to the ratio of total underwriting costs to net premiums written
Net loss ratio is equal to the ratio of net losses paid and loss adjustment expenses to
net premiums written.

insurance are excluded from the above calculation.

18(Left-hand graph)
To help you understand the actual condition of Sony Assurance, which is ina growth phase, we show the earned/incurred loss ratio, which is theaccrual-basis loss ratio. For the nine months ended December 31, 2009,
the earned/incurred loss ratio increased 1.0 percentage point year on year,
to 65.5%, due to an increase in insurance claims payments resulting mainly
from a rising number of car accidents.
The net expense ratio dropped 0.4 percentage point, to 25.5%, resulting
from an increase in net premiums written and lower operating expenses.
(Right-hand graph)
The net loss ratio rose 1.9 percentage points compared with the same
period of the previous fiscal year, to 56.3%. This is different from theearned/incurred loss ratio, which reflects primarily an increase in provision
for reserve for outstanding losses, influenced mainly by higher insurance
claims payments.
As a result, the combined ratio (the sum of the net loss ratio and the net
expense ratio) rose 1.5 percentage points year on year, to 81.8%.

18

Sony Assurance Operating Performance (3)Solvency Margin Ratio
(%)

1,400
1,200
1,000

993.0

1,031.7+38.7pt

800
600
400
200
0
09.3.3109.12.31

The above figures were calculated based on provisions of the Insurance Business Law Enforcement Regulations and the Ministry of Finance
Announcement. Further, part of calculations was simplified for the figure as of Dec 31, 2009.

19

As of December 31, 2009, Sony Assurance’s solvency margin ratio was
1,031.7%, up 38.7 percentage points from March 31, 2009. These figures
show that Sony Assurance has maintained a sound financial base.

19

Highlights of Operating Performance:
Sony Bank (Non(Non-Consolidated)
Ordinary revenues

25.5(10.2%)+34.7%(Billions of yen)
Ordinary profit

22.9

2.3

1.7

FY08.3Q

FY09.3Q(For the nine months)(Billions of yen)

FY08.3Q

FY09.3Q

Ordinary revenues

25.5

22.9

(2.5)

ChangeGross operating profit

9.4

11.0

+1.6

+17.2%Net interest income

3.8

9.9

+6.0

+156.5%

Net fees and commissions

0.2

0.0

(0.2)

(96.6%)Net other operating income

5.2

1.1

(4.1)

(78.8%)

General andadministrative expenses

7.6

8.5

+0.9

+12.1%

Ordinary profit

1.7

2.3

+0.5

+34.7%Net income

1.0

1.3

+0.3

+29.8%Net operating profit

1.7

2.4

+0.6

+38.8%(For the nine months)

Change from09.3.3108.12.31

09.3.3109.12.31

Securities

798.5

823.1

783.2

(39.9)(4.9%)

Loans

431.6

477.0

562.6

+85.5

+17.9%

Deposits

1,339.2

1,326.3

1,442.7+116.4+8.8%

Customer assets

1,417.9

1,403.6

1,543.8+140.1+10.0%(Billions of yen)Sony Bank
Despite a decrease in ordinary revenues, ordinary profit increased
year on year.
Gross operating profit increased ¥1.6 billion year on year due to anincrease in net interest income.
- Net interest income increased ¥6.0 billion due mainly to a decline
in interest on deposits in the lowering of interest rates and higher
interest on loans.
- Net other operating income decreased ¥4.1 billion mainly because
gains from derivatives, net, held for hedging purposes,
turned into losses.
Net income increased ¥0.3 billion year on year.
Customer assets were up ¥140.1 billion from March 31, 2009.

(10.2%)

Total net assets
Net unrealized gains/losses
on other securities(net of taxes)

Total assets

40.6

46.2

57.7

+11.4

+24.8%(15.2)

(9.6)

0.1

+9.8

－

1,416.3

1,411.9

1,562.2+150.2+10.6%

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

20

Highlights of Sony Bank’s operating performance (on a non-consolidated
basis) are shown here.
Sony Bank’s ordinary revenues decreased 10.2% compared with thesame period of the previous fiscal year, to ¥22.9 billion, mainly reflecting
global reductions in interest rates.
Gross operating profit increased 17.2% from the same period of theprevious fiscal year, to ¥11.0 billion, led by an increase in net interest
income. This was due mainly to a decline in interest on deposits in linewith lower interest rates and higher interest on loans for the growing
balance of mortgage loans. Nevertheless, net other operating income
decreased, mainly because gains from derivatives, net, held for hedging
purposes, turned into losses.
General and administrative expenses expanded 12.1% during the same
period of the previous fiscal year, to ¥8.5 billion, due mainly to an increasein system-related expenses.
As a result, ordinary profit increased 34.7% year on year, to ¥2.3 billion,
resulting in net income of ¥1.3 billion, up 29.8% year on year.

20Overview of Performance:
Sony Bank (Non(Non-Consolidated) (1)(Billions of yen)
08.12.31

09.3.3109.12.31

Change from 09.3.31
Amount/Number%

Customer assets

1,417.9

1,403.6

1,543.8+140.1+10.0%

Deposits

1,339.2

1,326.3

1,442.7+116.4+8.8%

Yen

1,070.3

1,044.2

1,122.1

+77.9

+7.5%

268.8

282.1

320.6

+38.5

+13.7%

Foreign currency
Investment trusts
Loans
Mortgage loans
OthersNumber of accounts(thousands)
Capital adequacy ratio(*2)(domestic criteria)

78.7

77.2

101.0

+23.7

+30.7%

431.6

477.0

562.6

+85.5

+17.9%

423.0

468.3

544.4

+76.0

+16.2%

8.5

8.7

18.2(*1)+9.4+108.2%

701

723

769

+45

+6.3%

14.38%

13.37%

13.04%(0.33 pt)

*1 Loans in others include syndicated loans of ¥10 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P25.

Line item amounts are truncated below ¥100 million; numbers of accounts are truncated below 1,000 accounts; percentage change figures are rounded.

21

Here is an overview of Sony Bank’s performance.

21

Overview of Performance:
Sony Bank (Non(Non-Consolidated) (2)■<Reference> On an Internal Control Basis(Billions of yen)(For the nine months)

FY08.3Q

FY09.3Q

Gross operating profit

9.4

11.0

+1.6

+17.2%+13.1%*1①

Change

8.9

10.0

+1.1

Net fees andcommissions *2 ②

1.4

0.9

(0.5)

(37.9%)Net other operating
income *3

(0.9)

0.0

+1.0

-

Net interest income

Gross operating profit(core profit) (A)<Reference>
Net Operating Profit (Core Profit)(Billions of yen)

3

2.7

2

10.4

11.0

+0.6

+5.8%

7.6

8.6

+0.9

+12.2%

2.7

2.4

(0.3)

(11.9%)

2.4

2.5(11.9％)

1.5= ①＋②
Operating expenses andother expenses ③
Net operating profit(core profit)

1
0.5= (A)－③

0

FY08.3Q
FY09.3Q (For the nine months)●On an Internal Control Basis
The following adjustments are made to the figures on a financial accounting basis to account for profits and losses more appropriately.
*1: Net interest income: Includes profits and losses associated with fund investment recorded in net other operating income, including gains or losses from currency
swap transactions.
*2: Net fees and commissions: Includes profits and losses for customer dealings in foreign currency transactions recorded in net other operating income.
*3: Net other operating income: After the above adjustment (*1 and *2), consists of profits and losses for bond and derivative dealing transactions.

●Core profit
Profits and losses exclude net other operating income, including those for bond and derivative dealing transactions, and stands for Sony Bank’s basic profits.
Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

22

The internal control basis is a method we use to describe profit conditions more
appropriately.
(Left-hand table)
Net interest income on an internal control basis increased ¥1.1 billion year on
year, to ¥10.0 billion, due mainly to a decline in interest paid on deposits in linewith lower interest rates and higher interest received on loans for the growing
balance of mortgage loans.
Net fees and commissions on an internal control basis, which shows a profit,
primarily adjusts gains/losses from the sale/purchase of foreign exchange withindividual customers. This amounted to ¥0.9 billion, down by ¥0.5 billion, owing
primarily to lower brokerage fees and commissions received.
Consequently, gross operating profit on a core profit basis, an indicator of thechanges in Sony Bank’s basic profitability, increased ¥0.6 billion year on year, to¥11.0 billion. This figure is calculated as the sum of net interest income and net
fees and commissions on an internal control basis.
(Right-hand graph)
Net operating profit on a core profit basis decreased ¥0.3 billion year on year, to¥2.4 billion, reflecting the decrease in net fees and commissions and anincrease in operating expenses and other expenses, despite the increase in net
interest income.

22

Sony Bank Operating Performance (1)<Reference> Interest Spread (Internal Control Basis)
2.50%
Interest spread
Yield on investment
Yield on financing

2.00%

1.94%

1.73%
1.64%

1.50%

1.53%

1.50%

1.09%
1.00%

0.84%

0.91%
0.82%

0.50%

0.95%

0.69%

0.92%

0.61%

0.92%

0.57%

0.00%
FY08.3Q

FY08.4Q

FY09.1Q

FY09.2Q

FY09.3Q

Notes: Interest spread = Yield on investment – Yield on financing
Yield on investment includes primarily gains or losses from currency swap transactions in net other operating income.

23

This chart shows the interest spread on an internal control basis. The yieldon financing has been dropping continuously due to a global reduction ininterest rates, while the bottoming out of the yield on investment has been
relatively gradual mainly for the growing balance of mortgage loans.
As a result, the interest spread has been stable at around 0.9%.

23Sony Bank Operating Performance (2)Customer Assets (Deposits + Investment Trusts)
and Number of Accounts
Yen deposits
Foreign currency deposits
Investment trusts
Number of accounts (thousands)(Billions of yen)

701

Loans
*including syndicated loans of ¥10 billion.

+45

769

(Billions of yen)Mortgage loans

Other

600

723

562.6

1,543.8

1,600

1,417.9
1,400

1,403.6 +140.1 101.0
320.6

1,200

500

431.6

300

1,122.1
600

18.2(*)

+85.5

400

1,000

800

477.0

544.4

Deposits total:¥1,442.7 billion
200

400

100
200

0

0
08.12.31

09.3.3108.12.31
09.3.3109.12.31
09.12.31
Line item amounts are truncated below ¥100 million; number of accounts are truncated below 1,000 accounts

24(Left-hand graph)
As of December 31, 2009, customer assets (the sum of deposits andinvestment trusts) were up ¥140.1 billion from March 31, 2009, to ¥1,543.8
billion.
As for the breakdown of customer assets as of December 31, 2009,
deposits (the sum of Japanese and foreign currency deposits) amounted to¥1,442.7 billion, up ¥116.4 billion from March 31, 2009, reflecting a higher
balance of yen time deposits, boosted by a special campaign in December
2009, offering higher rates for deposits made during the bonus season.
Investment trusts were ¥101.0 billion, up ¥23.7 billion from March 31, 2009.
As of December 31, 2009, the number of accounts was 769 thousand, up
45 thousand accounts from March 31, 2009.
(Right-hand graph)
Loans expanded steadily, to ¥562.6 billion, up ¥85.5 billion from March 31,
2009, owing to the growing balance of mortgage loans.

24Sony Bank Operating Performance (3)Non-Consolidated Capital Adequacy Ratio(Domestic Criteria)

Balance of Securities by Credit Ratings(%)
20(Billions of yen)
1,200

AAA

AA

A

BBB

BB

Other
15

1,000

800

798.5

823.1

14.38
13.37

13.04
(0.33pt)

783.2(39.9)

10

600

5

400

200

0
08.12.31

09.3.3109.12.31

Note: During the fiscal year ended March 31, 2009, Sony Bank raised its capital by¥12.0 billion by allocating its shares to Sony Financial Holdings.

008.12.31

09.3.31

Amounts are truncated below ¥100 million.

09.12.31* Sony Bank’s non-consolidated capital adequacy ratio was calculated based on the standard
stipulated by Article 14-2 of the Banking Law of Japan, in accordance with Financial Services
Agency of Japan (“FSA”) public ministerial announcement No. 19 of 2006. The capital
adequacy ratio as of and after December 31, 2008, newly adopted the special exception of
the standard mentioned above, in accordance with the FSA public ministerial announcement
No. 79 of 2008.

25(Left-hand graph)
As of December 31, 2009, the balance of securities decreased ¥39.9 billion,to ¥783.2 billion from March 31, 2009.
Sony Bank continuously invests in highly rated bonds.
(Right-hand graph)
As of December 31, 2009, Sony Bank’s non-consolidated capital adequacy
ratio (domestic criteria) was 13.04%, down 0.33 percentage point fromMarch 31, 2009. These figures indicate that Sony Bank has maintained asound financial base.

25

Consolidated Financial Forecast
for the Year Ending March 31, 2010
(Billions of yen; amounts are truncated below ¥100 million; percentage changes are rounded.)
FY09

FY09

(Updated
Forecast)(Forecast)

Consolidated ordinary revenues

ChangeFY09 forecast
vs FY08 actual■Life insurance business

944.0

962.0

860.3

+11.8%

Life insurance business

852.0

864.7

766.2

+12.8%

Non-life insurance business

66.3

67.8

61.8

+9.6%

Banking business

26.1

29.7

33.3

（11.0%）

Consolidated ordinary profit

64.0

81.0

34.2

+136.5%

Life insurance business

61.1

77.3

32.5

+137.5%

Non-life insurance business

2.0

2.0

2.1

（8.2%）

Banking business

1.3

2.1

(0.5)

－

36.0

45.0

30.7

+46.5%

Consolidated net income(unchanged)

Consolidated Ordinary Revenues(Billions of yen)
1,000

FY08
(Actual)Banking business
Non-life insurance businessLife insurance business
962.0

Consolidated Ordinary Profit(Billions of yen)

860.3

85

Banking business
Non-life insurance businessLife insurance business

81.0

SFH revised the financial results forecast for
FY09, reflecting operating performance for
FY09 3Q, as well as expected increases ininvestment income from the fourth quarter,
resulting from the continued purchases ofultralong-term bonds.

■Non-life insurance business
SFH revised the financial results forecast for
FY09, for ordinary revenues, due to the
expected expansion of business operations
primarily in automobile insurance in the forth
quarter. However, our ordinary profit forecast
remains unchanged as we expect the net loss
ratio for automobile insurance to increase.

■Banking Business
SFH revised the financial results forecast for
FY09, due to an expected increase ininvestment income in the forth quarter.

75

800
65
55

600

(Forecast)
Forecast)

400

45
35

34.2

(Forecast)
Forecast)

FY08

FY09

25

200

15
5

0
FY08

FY09

-5

26

Here is our consolidated financial forecast for the fiscal year ending March
31, 2010.
During the nine months ended December 31, 2009, operating results forthe life insurance business exceeded our previous forecast. Consequently,
we revised upward our consolidated financial forecast for the year ending
March 31, 2010, on February 4, 2010.
By segment, SFH revised the financial results forecast of the life insurance
business, reflecting operating performance for the nine months ended
December 31, 2009, as well as expected increases in investment income
from the fourth quarter, resulting from continued purchases of ultralongterm bonds.
As for the non-life insurance business, SFH has revised its financial results
forecast, for ordinary revenues, due to the expected expansion of business
operations, primarily in automobile insurance in the fourth quarter.
However, our ordinary profit forecast remains unchanged, as we expect
the net loss ratio for automobile insurance to increase.
In the banking business, SFH has revised its financial results forecast, due
to an expected increase in investment income in the forth quarter.

26

Appendix

27

Appendix27

Recent Topics (1)AEGON SONY LIFE INSURANCE Commenced Sales
Launch of sales：December 1, 2009
Common stock：¥20 billion（including capital surplus of ¥10 billion）
Equity ownership：Sony Life insurance Co., Ltd. 50%, AEGON・international B.V. 50%
Marketing products:
1) Winning Road (Variable Individual Annuity - Guaranteed Lifetime Withdrawal Benefit (GLWB) type)2) Victory Run (Variable Individual Annuity - Guaranteed Minimum Accumulation Benefit (GMAB) type)
Sales results: Number of policies:107, Premiums from new policies: ¥810.61 million *As of December 31, 2009

Sony Bank’s Mortgage Loans through Sony Life
Sony Life accounts for approx. 35% of the amount of
new mortgage loans.
* Sony Life started handling banking agency business in Jan. 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
Sony Life accounts for approx. 6% of new automobile policies.
* Sony Life started handling automobile insurance in May 2001.

28

Recent Topics

28

Recent Topics (2)<Recent Topics for FY09 3Q >2009-10

Sony Bank entered syndicated loan business2009-10- 1

Sony Assurance commenced committing e-mail response within three hours(if customer e-mail inquiries are received between 9 am and 5 pm on weekdays)
2009-10-13 Sony Assurance launched automobile insurance sales via the Jibun Bank mobile phone website

2009-11-2

Sony Life began offering Discount Rider for Nonsmokers and Others in Excellent Health2009-12-1

Sony Life commenced sales of ASLIC's variable individual annuity products through its Lifeplanner
sales channels

2009-12-7

Sony Bank and F&M tied up in conducting banking agency business for mortgage loans

2009-12-8

ASLIC's variable individual annuity product commenced to be offered at Tokyo Star Bank

2009-12-14 Sony Bank Securities commenced contract for difference (CFD) services
2010-1-21

Sony Life and AEGON International B.V. established a joint venture life reinsurance company
and completed the license registration

2010-2-1

Sony Assurance revised automobile insurance policies, effective on February 1, 2010
(Addition of some riders and changes in policy clauses and handling reflecting revisions to the Insurance Law)

(Note) ASLIC is an abbreviated name of AEGON Sony Life Insurance Co., Ltd.

29

Recent topics

29

Contact:

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

30

Contacts

30