Consolidated Financial Summary(Japanese GAAP)
for the Nine Months Ended December 31, 2012
February 14, 2013
Sony Financial Holdings Inc.
(URL: http://www.sonyfh.co.jp/web/index_en.html)
Stock exchange listing: Tokyo Stock Exchange (code number: 8729)
Katsumi Ihara, President and Representative Director
Representative:
Masaaki Konoo, General Manager—Corporate Communications & Investor Relations Dept.
Inquiries:(Fractional amounts of less than ¥1 million are discarded.)Company name:

1. Consolidated financial results for the nine months ended December 31, 2012
(1) Operating results
Ordinary Revenues
Ordinary Profit

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change871,505

10.8

55,492

3.0

32,781

44.5

786,368

5.4

53,892(22.3)

22,690(40.9)For the nine months
ended December 31, 2012
For the nine months
ended December 31, 2011
Note: Comprehensive Income:For the nine months ended December 31, 2012: ¥46,867 million:
For the nine months ended December 31, 2011: ¥40,984 million:

Net Income per
Share(Fully Diluted)

Net Income per
Share
Yen

For the nine months
ended December 31, 2012
For the nine months
ended December 31, 2011

14.4％
7.3％

Yen

75.36

—

52.16

—

(2) Financial conditions
Total Assets

Total Net Assets

Net Asset Ratio

Millions of yen

Millions of yen%

As of December 31, 2012

7,796,769

385,968

4.9

As of March 31, 2012

7,241,414

347,800

4.8

Notes: Shareholders'equity:

As of December 31, 2012 : ¥384,613 million
As of March 31, 2012: ¥346,540 million

2. Dividends
Dividend per Share

Record date
For the year ended
March 31, 2012
For the year ending
March 31, 2013
For the year ending
March 31, 2013
(forecast)

1st quarter2nd quarter3rd quarter

Year-end

Annual Total

Yen

Yen

Yen

Yen

Yen

—

0.00

—

—

0.00

—

20.00

20.00

25.00

25.00

Notes: Changes in dividend forecast since the most recent public announcement: None

3. Forecast of consolidated financial results for the year ending March 31, 2013
(Percentage figures represent changes from the results of the previous fiscal year.)Ordinary Revenues
For the year ending
March 31, 2013

Ordinary Profit

Net Income per
Share

Net Income

Millions of yen% change

Millions of yen% change

Millions of yen% change

1,157,000

7.3

74,000(0.8)

41,000

25.0

Yen

94.25

4. Notes(1) Changes in scope of consolidation during the period under review (changes in specified subsidiaries accompanying changes inscope of consolidation): Yes
Excluded: Two companies; Corporate name: Sony Bank Securities Inc. ・Sony Life Insurance (Philippines) Corporation
Note: For details, please refer to the section entitled “1．Changes in scope of consolidation during the period under review” under “Ⅱ. Notes
Regarding Summary Information” on page 5 of the attachment.

(2) Application of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(a) Changes in accounting policies resulting from the revision of the accounting standards and other regulations: None(b) Changes in accounting policies due to other reasons: Yes(c) Changes in accounting estimates: Yes(d) Restatements of the consolidated financial statements: None

Notes: Article 10-5 of the Ordinance on Terminology, Forms and Preparation Methods of Quarterly Financial Statements, etc., has been applied. For
details, please refer to the section entitled “2．Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements” under “Ⅱ. Notes Regarding Summary Information” on page 5 of the attachment.

(4) Number of shares outstanding (common stock)(a) Number of shares outstanding (including treasury shares)
As of December 31, 2012:
As of March 31, 2012:(b) Number of treasury shares
As of December 31, 2012:
As of March 31, 2012:(c) Weighted-average number of shares
For the nine months ended December 31, 2012:
For the nine months ended December 31, 2011:

435,000,000 shares
435,000,000 shares— shares— shares435,000,000 shares
435,000,000 shares

Status of quarterly review procedures
Quarterly review procedures are completed by PricewaterhouseCoopers Aarata in accordance with Article 193-2-1 of the
Financial Instruments and Exchange Law of Japan. However, quarterly consolidated financial statements in this document are notsubject to such quarterly review procedures.

Content of Supplemental Materials
I.

Qualitative Information and Financial Statements

II.

1.

Qualitative Information on Consolidated Operating Performance・・・・・・・・・・・・・・

2

2.

Qualitative Information on Consolidated Financial Position・・・・・・・・・・・・・・・・

3

3.

Consolidated Financial Forecast for the Year Ending March 31, 2013・・・・・・・・・・・・

3

Notes Regarding Summary Information
1.

Changes in scope of consolidation during the period・・・・・・・・・・・・・・・・・・・・

2.

Changes in accounting policies, accounting estimates and restatements of the consolidated
financial statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

III.

5
5

Consolidated Financial Statements
1.

Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2.

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

6(Consolidated Statements of Income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8(Consolidated Statements of Comprehensive Income) ・・・・・・・・・・・・・・・・・・・11

IV.

3.

Segment Information・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12

4.

Subsequent Events・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・13

Attachment
Consolidated Financial Results for the Nine Months Ended December 31, 2012 and Sony Life’s
Market Consistent Embedded Value as of December 31, 2012・・・・・・・・・・・・・・・ 15* The Conference Call for explaining the Sony Financial Group financial results will be held at 16:00 (Tokyo),February 14, 2013.
We are sorry for any inconvenience that our Conference Call will be held only in Japanese.
We will upload the Presentation Materials with speech text on February 14, 2013 after 15:00, and its Q&A
summary at a later date on Earnings Releases and Presentation Materials page on our website:
http://www.sonyfh.co.jp/web/en/financial_info_e/results.html* On February 14, 2013, SFH’s significant subsidiaries: Sony Life Insurance Co., Ltd. (Sony Life), Sony
Assurance Inc. (Sony Assurance) and Sony Bank Inc. (Sony Bank) will announce its financial results for thenine months ended December 31, 2012. SFH prepared an English-language summary of those Japanese
announcements made by the above subsidiaries, solely for convenience of non-Japanese readers.

1I. Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Operating Performance
During the nine months ended December 31, 2012 (April 1, 2012 to December 31, 2012), consolidated ordinary revenues
grew 10.8% compared with the same period of the previous fiscal year, to ¥871.5 billion, owing to increases in ordinary
revenues from the all businesses: life insurance, non-life insurance and banking. Consolidated ordinary profit increased
3.0% year on year, to ¥55.4 billion. By business segment, ordinary profit from the life insurance business increased, whereas
ordinary profit from the non-life insurance and banking businesses decreased year on year.
After accounting for extraordinary losses, provision of reserve for policyholders’ dividends and income taxes,
consolidated net income for the nine months ended December 31, 2012, was up 44.5% year on year, to ¥32.7 billion
reflecting the previous period’s increase in deferred income taxes owing to the partial reversal of deferred tax assets
associated with the reduction in the corporate tax rate.
Segment Information by Business
Figures from each business do not reflect intersegment adjustments.

< Life insurance business >In the life insurance business, income from insurance premiums increased 9.2% compared with the same period of theprevious fiscal year, to ¥657.4 billion, owing to a steady increase in the policy amount in force. Investment income increased
33.3% to ¥111.5 billion due to an improvement in investment income on separate accounts due to the market recovery towards
the end of December 2012. As a result, ordinary revenues increased 11.4% year on year, to ¥784.3 billion. Ordinary profit
increased 4.4% year on year, to ¥51.7 billion, due mainly to a decrease in provision of policy reserves for minimum
guarantees for variable life insurance and a recovery from negative spread into positive at Sony Life. These positive factors
surpassed the company’s negative effects stemming from recording higher profit in the previous period due to the reversal ofreserve for outstanding claims related to the Great East Japan Earthquake and the sale of securities in line with shifting its
bond holdings to ultralong-term bonds.

< Non-life insurance business >In the non-life insurance business, net premiums written increased 6.0% compared with the same period of the previous fiscal
year, to ¥62.9 billion, due to growth in the number of insurance policies in force centered on its mainstay automobile
insurance. Consequently, ordinary revenues rose 6.1% year on year, to ¥63.8 billion. On the other hand, ordinary profit
decreased 37.8% year on year, to ¥1.0 billion, owing to a rise in the loss ratio due mainly to higher insurance payments per
claim for automobile insurance which offset the positive impact of increased ordinary revenues.

< Banking business >In the banking business, ordinary revenues increased 5.5% compared with the same period of the previous fiscal year, to¥25.1 billion, due to an increase in net fees and commissions resulting from Sony Bank’s July 1, 2011 acquisition of
SmartLink Network, Inc., which became its consolidated subsidiary. The operating results of SmartLink Network, Inc. are
included in SFH’s scope of consolidation from the beginning of the nine months of this fiscal year ended December 31, 2012,
whereas they were included in only part of the previous period. Gross operating profit increased 1.9% year on year, to ¥15.3
billion, due to higher net interest income due to a growing balance of mortgage loans, as well as the aforementioned
improvement in net fees and commissions, which offset a decrease in profit related to foreign currency transactions. Generaland administrative expenses increased 5.7% year on year, to ¥12.7 billion. As a result, ordinary profit decreased 1.0% year on
year, to ¥2.5 billion.
Goodwill amortization of ¥0.3 billion* is included in SFH’s financial results in the banking business, although it is notincluded in Sony Bank’s financial results (consolidated).
* Goodwill arose through SFH’s purchase in March 2008 of shares in Sony Bank held by minority interests, converting Sony Bank toa wholly owned subsidiary. This goodwill is being amortized on a straight-line basis over five years.

2

Ordinary Revenues
For the nine months ended
December 31, 2011
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments
Consolidated

For the nine months ended
December 31, 2012

Change (%)

703,971
60,144
23,840784,377
63,82325,149

11.4
6.1
5.5

787,956

873,350

10.8(1,587)(1,844)－786,368

871,505

10.8

Ordinary Profit
For the nine months ended
December 31, 2011
Life insurance business
Non-life insurance businessBanking business
SubtotalIntersegment adjustments*
Consolidated(Millions of yen)

For the nine months ended
December 31, 2012

(Millions of yen)
Change (%)

49,591
1,694
2,534

51,789
1,053
2,507

4.4
(37.8)(1.0)

53,81972

55,351
141

2.8
95.1

53,89255,492*Amounts in the ordinary profit in the “Intersegment adjustments” are mainly from SFH.

3.0

2. Qualitative Information on Consolidated Financial Position
As of December 31, 2012, total assets amounted to ¥7,796.7 billion, up 7.7% from March 31, 2012. Among major
components of assets, securities, mostly Japanese government bonds, amounted to ¥5,993.0 billion, up 8.3% from March 31,
2012. Loans came to ¥1,071.9 billion, up 9.9%, and monetary trusts amounted to ¥308.4 billion, up 1.8% from March 31,
2012.
Total liabilities were ¥7,410.8 billion, up 7.5% from March 31, 2012. Major components of liabilities included policy
reserves and others of ¥5,378.9 billion, up 8.4%, and deposits totaled ¥1,868.3 billion, up 6.1%.
Total net assets were ¥385.9 billion, up 11.0% from March 31, 2012. This included net unrealized gains on other securities,
net of taxes, which increased ¥14.0 billion, to ¥51.0 billion.

3. Consolidated Financial Forecast for the Year Ending March 31, 2013
SFH announced its revised consolidated financial forecast for the year ending March 31, 2013 (April 1, 2012, throughMarch 31, 2013) on February 7, 2013. The previous forecast was announced on May 10, 2012.
SFH revised its consolidated financial forecast for the year ending March 31, 2013, as follows.
[For the full year](Actual)Year ended March 31, 2012
(Apr.1, 2011, to Mar. 31, 2012)(Billions of yen)
Updated forecast for the year
ending March 31, 2013
(Apr. 1, 2012, to Mar. 31, 2013)

Ordinary revenues

1,078.0

1,157.0

Ordinary profit

74.6

74.0

Net income

32.8

41.0

3

(Reference)
Forecasts of ordinary revenues and ordinary profit from each business for the year ending March 31, 2013, are as follows. The
previous forecasts were disclosed in the Consolidated Financial Summary for the year ended March 31, 2012, on May 18,
2012, except for ordinary revenues from the non-life insurance business, which was revised on November 14, 2012.
Actual results figures for the year ended March 31, 2012 from each business do not reflect intersegment adjustments whereas
forecast figures for the year ending March 31, 2013 reflect them.
<Life insurance business>
As operating results for the nine months ended December 31, 2012 exceeded our previous forecast in the life insurance
business, SFH revises upward its financial forecast for the year ending March 31, 2013.
The updated forecast reflects the movements of financial market in early January 2013 and other factors. However, thefigures stated above may differ from actual results for a variety of reasons.
[For the full year](Billions of yen)
Formerly announced forecast(Reference)
Updated forecast
for the year ending
Actual results for the year
for the year ending
March 31, 2013
ended March 31, 2012
March 31, 2013
Ordinary revenues

967.5

994.5

1,038.1

Ordinary profit

68.1

61.5

68.5

<Non-life insurance business>
The forecast of ordinary revenues and ordinary profit for the year ending March 31, 2013, are unchanged.
[For the full year](Billions of yen)
(Reference)
Forecast for the year ending
March 31, 2013
Actual results for the year ended March 31, 2012
Ordinary revenues

80.0

85.0

Ordinary profit

2.8

2.6

<Banking business>
The forecast of ordinary revenues and ordinary profit for the year ending March 31, 2013, are unchanged.
[For the full year](Billions of yen)
(Reference)
Forecast for the year ending
Actual results for the year ended March 31, 2012
March 31, 2013
Ordinary revenues

32.5

34.5

Ordinary profit

3.4

3.6

Note: Fractional amounts of less than ¥ 0.1 billion are discarded for ordinary revenues, ordinary profit and net income.

4

Ⅱ. Notes Regarding Summary Information
1. Changes in scope of consolidation during the period under review
Sony Bank Securities Inc. has been excluded from the scope of consolidation during the second quarter, owing to the transfer of allshares in the company by SFH’s banking subsidiary (Sony Bank Inc.).Sony Life Insurance (Philippines) Corporation has been
excluded from the scope of consolidation during the third quarter, owing to the transfer of all shares in the company by
SFH’s life insurance subsidiary (Sony Life Insurance Co., Ltd.).
２．Changes in accounting policies, accounting estimates and restatements of the consolidated financial statements(Changes in method of depreciation for Tangible fixed assets)
In the past, SFH and its domestic consolidated subsidiaries used the declining-balance method to depreciate certain of their
tangible fixed assets. However, to ensure consistency with SFH’s parent company, this has been changed to the straight-line
method, beginning in the first quarter of the fiscal year ending March 31, 2013. Consequently, during the nine months depreciation
and amortization and depreciation of real estate for rent and others were each ¥302 million lower, and ordinary profit and income
before income taxes were ¥302 million higher than they would have been under the previous method.

5

Ⅲ. Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2012

As of December 31, 2012

AssetsCash and due from banks¥118,877¥96,231

Call loans and bills bought

66,30050,400

Monetary trusts

303,058

308,4435,531,585

5,993,027

Loans

975,032

1,071,943

Tangible fixed assets

75,16973,856

Intangible fixed assets

36,636

37,846

Goodwill

839

403

Others35,79637,442

Securities

Due from reinsurers

79

267

Foreign exchanges

8,936

10,728Other assets

92,416125,041

Deferred tax assets

34,171

29,860

Customers'liabilities for acceptances and guarantees

1,000

1,000

Reserve for possible loan losses(1,848)(1,876)¥7,241,414¥7,796,769

Total Assets

6

(Millions of yen)
As of March 31, 2012

As of December 31, 2012

Liabilities
Policy reserves and others¥4,963,025¥5,378,958

48,23351,282

4,910,669

5,323,622

4,122

4,053

Due to agencies

1,664

1,450

Due to reinsurers

647

507

Reserve for outstanding claims
Policy reserves
Reserve for policyholders'dividends

1,760,853

1,868,301

Call money and bills sold

Deposits

10,00010,000Borrowed money

2,000

2,000

Foreign exchanges

35

18

Bonds payable

10,00010,000

Other liabilities

93,56382,020Reserve for employees'bonuses

2,944

1,708

Reserve for employees'retirement benefits

21,54723,543

Reserve for directors'retirement benefits
Special reserves
Reserve for price fluctuations
Reserve for financial products transaction liabilities
Deferred tax liabilities on land revaluation
Acceptances and guarantees
Total Liabilities

354

381

25,38630,321

25,38030,321

6

－

589

589

1,000

1,000

6,893,613

7,410,801

Net Assets
Common stock

19,90019,900Capital surplus

195,277

195,277

Retained earnings

98,677

122,759

313,854

337,936

Net unrealized gains on other securities, net of taxes

36,94951,039Net deferred losses on hedging instruments, net of taxes(2,414)(2,966)

Land revaluation, net of taxes(1,395)(1,395)(453)－

Total shareholders'equity

Foreign currency translation adjustments

32,68546,677

Minority interests

Total accumulated other comprehensive income

1,260

1,354

Total Net Assets

347,800

385,968¥7,241,414¥7,796,769

Total Liabilities and Net Assets

7

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
For the nine months ended
December 31, 2011

For the nine months ended
December 31, 2012

Ordinary Revenues¥786,368¥871,505

Ordinary Revenues from the Life Insurance Business

702,472

782,667

Income from insurance premiums

601,520

656,715

Investment income

83,373111,240(Interest income and dividends)

72,31480,092(Income from monetary trusts, net)

3,958

3,934

(Gains on sale of securities)

7,088

2,458

－

24,73917,57814,71160,142

63,82359,44963,011

59,426

62,98723

24(Gains on separate accounts, net)
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

651

743

(Interest income and dividends)

647

743

(Gains on sale of securities)

23

24(Transfer to interest and dividends on deposits of premiums)

(23)

(24)

42

68

23,75325,015

18,551

19,238(Interest income on loans)

9,919

10,367(Interest income and dividends on securities)

Other ordinary income
Ordinary Revenues from the Banking Business
Interest income

8,593

8,814

Fees and commissions

3,263

3,968

Other operating income

1,892

1,715

1,329

1,157

(Gains on foreign exchange transactions, net)
Other ordinary income

46

92(Continued)

8

(Millions of yen)
For the nine months ended
December 31, 2011

For the nine months ended
December 31, 2012

Ordinary Expenses¥732,476¥816,013

Ordinary Expenses from the Life Insurance Business

654,027

732,111

Insurance claims and other payments

216,472

215,554(Insurance claims)

52,627

51,683(Annuity payments)

5,735

6,704

(Insurance benefits)

33,55237,398(Surrender payments)

121,257

116,510

1,803

1,833

315,000

409,557

314,989

409,547(Other payments)
Provision for policy reserves and others
Provision for policy reserves

11

9

Investment expenses

Interest portion of reserve for policyholders'dividends

29,7289,317(Interest expenses)

44

30

1,847

1,587

(Devaluation losses on securities)

1,470

327

(Losses on separate accounts, net)

18,792－

Operating expenses

77,54779,934

Other ordinary expenses

15,27817,748(Losses on sale of securities)

Ordinary Expenses from the Non-life Insurance Business

58,04962,304

Underwriting expenses

43,90547,340(Net losses paid)

32,95135,041(Loss adjustment expenses)

3,797

4,241

(Net commission and brokerage fees)

761

734

(Provision for reserve for outstanding losses)

2,325

3,594

(Provision for underwriting reserves)

4,068

3,727

2

5

14,092

14,94349

14

Investment expenses
Operating, general and administrative expenses
Other ordinary expenses(Continued)

9

(Millions of yen)
For the nine months ended
December 31, 2011
Ordinary Expenses from the Banking Business
Interest expenses(Interest expenses on deposits)

For the nine months ended
December 31, 2012

¥20,398¥21,597

6,558

6,138

5,111

4,934

Fees and commissions

1,031

1,128

Other operating expenses

432

1,518

11,87912,631

General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Gains
Gains on disposal of fixed assets
Extraordinary Losses

496

181

53,89255,492

0

－

0

－

6,399

6,338

Losses on disposal of fixed assets

31

15

Impairment losses

249

82

6,118

4,940

Provision for special reserves
Provision for reserve for price fluctuations

6,118

4,940

Losses on sales of shares of subsidiaries and affiliates

－

1,299

Others－0

Provision (Reversal) for Reserve for Policyholders'Dividends

(113)

136

Income Before Income Taxes

47,60649,017

Income Taxes

24,84916,141- Current

19,705

18,375- Deferred

5,144(2,233)22,75632,87566

94¥22,690¥32,781

Income Before Minority Interests
Minority interests in income
Net Income102. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Comprehensive Income)(Millions of yen)
For the nine months ended
December 31, 2011
Income Before Minority Interests

For the nine months ended
December 31, 2012

¥22,756¥32,875

Net unrealized gains on other securities, net of taxes

19,377

14,090Net deferred losses on hedging instruments, net of taxes(1,102)(552)

Land revaluation, net of taxes

103－

Foreign currency translation adjustments

(149)

453

(2)

(0)

Other comprehensive income

Share of other comprehensive income of affiliates accounted
for using equity method
Total other comprehensive income

18,227

13,991¥40,984¥46,867

Comprehensive income attributable to parent company

40,91846,773Comprehensive income attributable to minority interests

66

94

Comprehensive income(Details)

11

3．Segment Information
For the nine months ended December 31, 2011
(1) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥702,472
1,499
703,971\49,591

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥60,1421
60,144\1,694¥23,753
86
23,840\2,534

Total¥786,368
1,587
787,956\53,819(2) Reconciliations of the totals of reportable segments' profit to quarterly consolidated statement of income
Millions of yen¥53,819
764

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income¥53,892(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None
For the nine months ended December 31, 2012
(1) Segment Information by reporting segment

Life insurance
business
Ordinary revenues
External customers
Intersegment
Total
Segment profit¥782,667
1,710
784,377\51,789

Millions of yen
Non-life
Banking
insurancebusinessbusiness¥63,823
0
63,823\1,053¥25,015
134
25,149\2,507

Total¥871,505
1,844
873,350\55,351(2) Reconciliations of the totals of reportable segments' profit to quarterly consolidated statement of income
Millions of yen¥55,351
5
136

Totals of reporting segments
Adjustments for intersegment transactions
Amount not allocated to reportable segments
Ordinary profit in quarterly consolidated
statement of income¥55,492(3) Information on impairment loss on fixed assets and goodwill by reporting segment
None

12

4．Subsequent Events
Issuance of Straight Bonds
December 25, 2012-At a Board of Directors' Meeting resolved to issue straight bonds.
NameSony Financial Holdings Inc. No. 2 Straight Bonds

Total amount¥10 billlion

Subscription date

January 31, 2013

Subscription amount¥100 per each ¥100 of face value

Interest rate

0.434% per annum

Redemption date and method

Feburuary 5, 2018, lump-sum payment at maturity

Use of funds

Sony Financial Holdings used the funds raised through this issue as investment funds loaned
to its wholly owned subsidiary, Sony Bank Inc.

13

SFH’s consolidated results* are prepared in accordance with Japanese GAAP. As such, these figures differ insignificant respects from the financial information reported by Sony Corporation, the SFH’s parent company,
which prepares its financial statements in accordance with U.S. GAAP.
*SFH’s scope of consolidation includes Sony Financial Holdings Inc., Sony Life Insurance Co. Ltd., Sony
Assurance Inc., Sony Bank Inc., Sony Life Insurance (Philippines) Corporation, Sony Bank Securities Inc., andSmartLink Network, Inc. It also includes AEGON Sony Life Insurance Co., Ltd. and SA Reinsurance Ltd., asaffiliated companies accounted for under the equity method. Sony Bank Securities Inc. and Sony Life
Insurance (Philippines) Corporation were out of the scope of consolidation from August 1, 2012 and December
6, 2012, respectively and thereafter.
On February 7, 2013, Sony Corporation announced its consolidated financial results for the third quarter ended
December 31, 2013 (October 1, 2012, to December 31, 2012). Sony Financial Group companies constitute themajority of Sony Group’s Financial Services segment. However, the scope of Sony Group’s Financial Services
segment differs from the scope of SFH’s consolidated results.
This Consolidated Financial Summary contains statements concerning the current plans, expectations,strategies and beliefs of the Sony Financial Group. Any statements contained herein that pertain to future
operating performance and that are not historic facts are forward-looking statements. Forward-looking
statements may include—but are not limited to—words such as “believe,” “anticipate,” “plan,” “strategy,”“expect,” “forecast,” “predict,” and “possibility” that describe future operating activities, businessperformance, events or conditions. Forward-looking statements, whether spoken or written, are based on
judgments made by the management of the Sony Financial Group, based on information that is currently
available to it. As such, these forward-looking statements are subject to various risks and uncertainties, andactual business results may vary substantially from the forecasts expressed or implied in forward-looking
statements. Consequently, investors are cautioned not to place undue reliance on forward-looking statements.
The Sony Financial Group disclaims any obligation to revise forward-looking statements in light of new
information, future events or other findings. The information contained in this Consolidated Financial
Summary does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of
any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on inconnection with any contract or commitment whatsoever.
For inquiries:
Masaaki Konoo or Hiroko Hanakura
Corporate Communications & Investor Relations Dept.
Sony Financial Holdings Inc.
Telephone: +81-3-5785-1074
E-mail: press@sonyfh.co.jp
Website of Sony Financial Holdings Inc.
http://www.sonyfh.co.jp/web/index_en.html

14

IV. Attachment
Content of Presentation Material

Consolidated Financial Results for the Nine Months Ended December 31, 2012 andSony Life’s Market Consistent Embedded Value as of December 31, 2012
1.
2.
3.
4.

Consolidated Operating Results for the Nine Months Ended December 31, 2012・・・・・・・ 3
Consolidated Financial Forecast for the Year Ending March 31, 2013・・・・・・・・・・・ 26
Sony Life’s MCEV and Risk Amount Based on Economic Value as of December 31,
2012 ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 28
Appendix・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 30

15

Attachment

Presentation Material

Consolidated Financial Results
for the Nine Months Ended December 31, 2012
andSony Life’s
Market Consistent Embedded Valueas of December 31, 2012

Sony Financial Holdings Inc.
February 14
14, 2013

1

Content

 Consolidated Operating Results for the Nine Months Ended December 31, 2012

P. 3

 ConsolidatedC
lid t d Fi
Financial
i l Forecast
F
t for
f the
th YearY
Ending
E di MarchM
h 31,
31 2013

P 26
P.26

 Sony Life’s MCEV and Risk Amount Based on Economic Value as of December 31, 2012

P.28



P.30

Appendixpp

Disclaimers:
This presentation material contains statements concerning the current plans, expectations, strategies and beliefs of the Sony Financial Group. Any statements
contained herein that pertain to future operating performance and that are not historic facts are forward-looking statements. Forward-looking statements may
i l dinclude—butb t are nott limited
li it d tto—words
d suchh as “b“believe,”li” ““anticipate,”
ti i t ” ““plan,”l ” ““strategy,”t t” ““expect,”t ” “f“forecast,”t ” ““predict,”
di t ” andd ““possibility”
ibilit ” ththatt ddescribe
ib ffuturetoperatingti
activities, business performance, events or conditions. Forward-looking statements, whether spoken or written, are based on judgments made by the management of
the Sony Financial Group, based on information that is currently available to it. As such, these forward-looking statements are subject to various risks anduncertainties, and actual business results may vary substantially from the forecasts expressed or implied in forward-looking statements. Consequently, investors are
cautioned not to place undue reliance on forward-looking statements. The Sony Financial Group disclaims any obligation to revise forward-looking statements in lightof new information, future events or other findings. The information contained in this presentation does not constitute or form part of any offer for sale or subscriptionof or solicitation or invitation of any offer to buy or subscribe for any securities
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.

2

Attachment

Consolidated Operating Results for
the Nine Months Ended December 31
31, 2012

3

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2012 (1)Ordinary revenues

Ordinary profit

871.5
786.3
+10.8%((Billions of yen)y )FY11.3Q(9M)

FY12.3Q(9M)

Life
Insurance
Business

Ordinary revenues

703.9

784.3

+80.4

+11.4%

Ordinary profit

49.5

51.7

+2.1

+4.4%

Non-life
Insurance
Business

Ordinary revenues

60.1

63.8

+3.6

+6.1%

Ordinary profit

1.6

1.0

(0.6)

(37.8%)

Banking
Business

Ordinary revenues

23.8

25.1

+1.3

+5.5%

Ordinary profit

2.5

2.5

(0.0)

(1.0%)

Intersegment
Adjustments*

Ordinary revenues

(1.5)

(1.8)

(0.2)

－

55.4
53.8

+3.0%

Consolidated

FY11.3Q (9M)

FY12.3Q (9M)

0.0

0.1

+0.0

+95.1%

Ordinary revenues

786.3

871.5

+85.1

+10.8%

Ordinary profit

53 8
53.8

55 4
55.4

+1 6
+1.6

+3 0%
+3.0%

Net income

22.6

32.7

+10.0

+44.5%

Ordinary profit

12.3.3112.12.31

Total assets

7,241.4

7,796.7+555.3+7.7%

Net assets

347.8

385.9

+38.1

+11.0%(Billions of yen)(Billions of yen)

Consolidated

ChangeChangeg from 12.3.31*Amounts in ordinary profit in the “Intersegment adjustments” are mainly from SFH.
*Comprehensive
Comprehensive income: FY11
FY11.3Q
3Q (9M): ¥40.9¥40 9 billion,
billion FY12FY12.3Q(9M)
3Q(9M) : 46
46.8
8 billion
billion.

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

4

Attachment

Highlights of Consolidated Operating Performancefor the Nine Months Ended December 31, 2012 (2) Life insurance business: Ordinary revenues increased year on year due mainly to higher income frominsurance premiums associated with steady growth in policy amount in force, as well as an improvement
in investment income on separate accounts due to the market recovery towards the end of December
2012. Ordinaryy profit increased due mainlyy to a decrease in provision of policyy reserves for minimum
guarantees for variable life insurance and a recovery from negative spread into positive at Sony Life.
These positive factors surpassed the company’s negative effects stemming from recording higher profit in
the previous period due to the reversal of reserve for outstanding claims related to the Great East Japan
Earthquake and the sale of securities in line with shifting its bond holdings to ultralong-term bonds.

 Non-life insurance business: Ordinary revenues increased year on year owing to an increase in net

premiums written primarily for its mainstay automobile insurance. On the other hand, ordinary profit
decreased year on year owing to an increase in the loss ratio due mainly to higher insurance payments
per claim for automobile insurance.

 Banking business: Ordinary revenues increased year on year due to an increase in net fees andcommissions resulting from Sony Bank’s July 1, 2011 acquisition of SmartLink Network, Inc., whichbecame its consolidated subsidiary. The operating results of SmartLink Network, Inc., are included in
SFH’ss scope of consolidation from the beginning of the nine months of this fiscal year ended December
SFH31, 2012, whereas they were included in only part of the previous period. On the other hand, ordinary
profit remained at the same levels as during the same period of the previous fiscal year because higher
interest received on loans due to an increase in the balance of mortgage loans was offset by a decreasein profit related to foreign currency transactions.

 Consolidated ordinary revenues grew 10.8% year on year, to ¥871.5 billion, owing to increases in ordinary

revenues from all businesses. Consolidated ordinary profit increased 3.0% year on year, to ¥55.4 billion,
reflecting an increase in ordinary profit in the life insurance business, whereas ordinary profit from thenon-life insurance and the banking business decreased year on year. Consolidated net income was up
44 5% year on year, tto ¥32.7
44.5%¥32 7 billi
billion, reflecting
fl ti ththe previousiperiod’s
i d’ increaseiin
i ddeferredfd iincome ttaxes
owing to the partial reversal of deferred tax assets associated with the reduction in the corporate tax rate.

5

Highlights of Operating Performance:
Sony Life (Non-consolidated)
Ordinary revenues

Ordinary profit(Billions of yen)

784.1
703 8
703.8

FY11.3Q (9M)

FY12.3Q (9M)

703.8

784.1

+80.3

Income from insurance premiums

602.0

657.3

+55.2

+9.2%

Investment income

83.5

111.4

+27.8

+33.3%

Interest income and dividends

72.5

80.3

+7.8

+10.8%

Income from monetary trusts, net

3.9

3.9

(0.0)

(0.6%)

Gains on sale of securities

7.0

2.3

(4.6)

(66.6%)

-

24.7

+24.7

-

653.3

731.2

+779

+11.9%

Ordinary revenues+11.4%+4.7%

Gains on separate accounts, net

52.8

Ordinary expenses

50.5

FY11.3Q (9M)(Billions of yen)
◆ Income from insurance premiums increased due to a steadyincrease in the policy amount in force.

Insurance claims and other payments

216.4

215.5

(0.9)

(0.4%)

314.9
3
9

409.5
09 5

+94.5
9 5

+30.0%
30 0%

Investment expenses(68.3%)

29.8

9.4(20.3)

Losses on sale of securities

1.8

1.5

(0.2)

(14.1%)

Losses on separate accounts, net

18.7

-

(18.7)(100.0%)

77 6
77.6

80 0
80.0

+2 3
+2.3

+3 1%
+3.1%

Ordinary profit

Operating expenses

50.5

52.8

+2.3

+4.7%

Net income

22.2

31.1

+8.8

+40.0%◆ Investment income increased year on year, reflecting an
improvement in investment income on separate accounts
due to the market recovery
y towards the end of December 2012.
◆ Ordinary profit increased due mainly to a decrease in provisionof policy reserves for minimum guarantees for variable life
insurance and a recovery from negative spread into positive at
Sony Life. These positive factors surpassed the company’s
negative effects stemming from recording higher profit in theprevious period due to the reversal of reserve for outstanding
claims related to the Great East Japan Earthquake and thesale of securities in line with shifting its bond holdings toultralong-term bonds.

+11.4%o s o foro popolicycy reserves
ese es aanddootherses
Provision

FY12.3Q (9M)

◆ Ordinary revenues and ordinary profit increased year on year.

Change(Billions of yen)

12.3.3112.12.31

ChangeSecurities

4,545.0

4,957.6+412.6

Policy reserves

4,843.0

5,252.5+409.5+8.5%

Total net assets

264.8

298.6

+33.7

+12.8%+34.5%Net unrealized gains on other securities
Total assets
Separate account assets

+9.1%

34.0

45.7

+11.7

5,222.8

5,660.8+438.0

+8.4%

444.2

487.8

+43.5

+9.8%

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

6

Attachment

Overview of Operating Performance:
Sony Life (Non-consolidated)
FY11.3Q(9M)

FY12.3Q(9M)

New policy amount

3,227.1

3,215.9(Billions of yen)<Reasons for changes>

Change◆ Remained at the same level due tolower sales of family income insurance
which offset higher sales of living
benefit insurance, etc.

(0.3%)

Lapse and surrender amount

1,561.9

1,451.5(7.1%)

Lapse and surrender rate

4.50%

4.03%

(0.47pt)

Policy amount in force

35,807.9

37,203.6+3.9%◆ Decreased due to the lowering lapse
and surrender rates mainly in term-life
insurance.

53.1

51.1

(3.7%)

13.0

13.1

+0.9%

627.6

657.8

+4.8%

147.3

155.7

+5.7%

FY11.3Q(9M)

FY12.3Q
(9M)

72.5

77.1

+6.5%

Core profit

50 9
50.9

57 0
57.0

+12 0%+12.0%

Negative spread

(1.7)

1.1

―

12.3.3112.12.31

Changefrom 12.3.31

1,980.4%

2,240.5%+260.1pt

Annualized premiums from new policies
Of which, third-sector products
Annualized premiums from insurance in force
Of which,, third-sector p
products(Billions of yen)

Gains from investment, net (general account)Non-consolidated solvency margin ratio◆ Decreased due mainly to lower sales ofcancer hospitalized insurance which
offset higher sales of living benefit
insurance,, etc.
◆ Increased due to an increase in interest
income and dividends which offset
lower gains on sale of securities.

ChangeNotes:*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 total of individual life insurance and individual annuities.
*2 The lapse and surrender rate shows the ratio derived by dividing the amount of lapses and surrenders, not adjusted for policy amount decreases,
increases, and reinstatements, by the policy amount in force at the beginning of the fiscal year.
*3. The plus amount in negative spread indicates positive spread.
*4 The non-consolidated solvency margin ratios are calculated based on the current standards applied from the end of fiscal 2011 (March 31, 2012).

◆Increased owing primarily to a decreasein provision of policy reserves forminimum guarantees for variable life
insurance and a recovery fromnegative spread into positive (positive
factors) despite recording higher profit
in the previous period due to thereversal of reserve for outstanding
claims related to the Great East Japan
Earthquake(negative factor).
Line item amounts are truncated below ¥100 million;
percentage change figures are rounded.

7

Sony Life Operating Performance (1)Number and Amount of New Policies

Annualized Premiums from New Policies(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

New policy amount

Number of new policies

Annualized premiums from new policies

Of which, third-sector(Thousands of policies)(Trillions of yen)

462

454

(3 2%)(3.2%)

439y )
500 ((Billions of yen)60

(0.3%)

3.21

400

40,0003.5
35,000

3.22

3.22

53.9

53.1

(3.7%)

51.1

50

3.0
30,000300

2.5
25,00040

30

20,000
,2.0
200

1.5
15,00020

1.0
10,000

+0.9%

100

10

5,000
0.5
0

0
FY10.3Q (9M)

FY11.3Q (9M)

FY12.3Q (9M)Line item amounts are truncated below ¥10 billion; numbers of policies aretruncated below 1,000 policies; percentage change figures are rounded.

12.6

13.0

13 1
13.1

FY10.3Q (9M)

FY11.3Q (9M)

FY12.3Q (9M)0Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

8

Attachment

Sony Life Operating Performance (2)Number and Amount of Policies in Force

Annualized Premiums from Insurance in Force(Individual Life Insurance + Individual Annuities)(Individual Life Insurance + Individual Annuities)

Policy amount in force

Number of policies in force

Annualized premiums from insurance in force

Of which, third-sector(Millions of policies)(Trillions of yen)

50

+5.7%

5 60
5.60

40

+4.4%

5.67

5.92

(Billions of yen)

6.00

700
00

627.6

35.8

+3.9%

5.00

37.2

36.0

4.00

+3.1%

30

657.8

635 4
635.4

+4.8%

+3.5%

600
500
400

3.00

300

20
2.00
10

1 00
1.00

200

11.12.31

12.3.31

148 9
148.9

100

+4.6%
4 6%

147.3

155.7

0

0.00

0

+5.7%

11.12.31

12.12.31

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

11.3.3112.12.31

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

9Sony Life Operating Performance (3)Lapse and Surrender Rate*

Non-consolidated Solvency Margin Ratio(Individual Life Insurance + Individual Annuities)＜Annual and 9M＞

Lapse and surrender rate (Annual)(%)

Lapse and surrender rate (9M)

3,000

(%)

10

2,500

8

2,000

2,240.5
1,980.4

6.41(Annual)

5.93

6+260.1pt

1,500
(9M)

4

1,720.0(0 47 t)(0.47pt)

4.79

4.50

1,000

4.03

2

500
0

0
FY10

FY11

FY12

*The lapse and surrender rate shows the ratio derived by dividing the amount oflapses and surrenders, not adjusted for policy amount decreases, increases, andreinstatements, by the policy amount in force at the beginning of the fiscal year.

11.3.3112.3.3112.12.31

Note: The non-consolidated solvency margin ratios are calculated based on the current
standards applied from the end of fiscal 2011 (March 31, 2012).

10

Attachment

Sony Life Operating Performance (4)Ordinary Profit

Income from Insurance Premiums(Billions of yen)(Billions of yen)

565.5

600

66.1

70

657.3

700

602.0

60

50.5

+9.2%

52.8

+4.7%

50

500

40

400
300

30

200

20

100

10

0

0
FY10.3Q (9M)

FY11.3Q (9M)

FY10.3Q (9M)

FY12.3Q (9M)

FY11.3Q (9M)

FY12.3Q (9M)Line item amounts are truncated below ¥100 million; percentage change figures are rounded.

11

Sony Life Operating Performance (5)Core Profit

Negative Spread(Billions of yen)

57.0

60
(Billions of yen)

50.9

5

50

4

+12.0%
12 0%

43.9

3

1.1

2

40

1
0

30

-1
-2

(1.7)

-3

20

-4
-5
-6

10

(5.5)

-7
0

-8

FY10.3Q (9M)

-9-10

FY10.3Q (9M)

FY11.3Q (9M)

FY12.3Q (9M)

FY12.3Q (9M)

(Reference)
Provision of policy reserves of the general account assets for minimum
guarantee for variable life insurance
FY10.3Q (9M)

* The plus amount in negative spread indicates positive spread.

FY11.3Q (9M)

FY11.3Q (9M)
4.5

5.6

(Billions of yen)

YonY Change

FY12.3Q (9M)
1.2

(4.4)

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

12

Attachment

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

4,500
4,066
[49]

4,026
[51]

4,023
[62]

4,000

4,116
[71]

3,996
[66]

+35

4,098
[79]

4,031
[87]

4,071
[82]
(40)

3,500

3,000
0
11.3.3111.6.30

11.9.30

11.12.31

12.3.31

Note: Figures in [] show the number of Lifeplanner sales employees (rehired on a fixed-term contract basis after
retirement) included in the overall numbers, those who have reached retirement age but who continue to work
as Lifeplanner sales employees that meet certain sales conditions and other requirements.

12.6.30

12.9.30

12.12.31* “Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

13

Sony Life Operating Performance (7)Breakdown of General Account Assets
12.3.31<Asset management review>

12.12.31(Billions of yen)Amount%Amount%Japanese governmentand corporate bonds

3 975 7
3,975.7

83 2%
83.2%

4 370 54,370.5

84 5%
84.5%

Japanese stocks

45.0

0.9%

28.5

0.6%

Foreign securities

59.6

1.2%

60.5

1.2%

Foreign stocks

30.5

0.6%

24.4

0.5%

Monetary trusts

288.2

6.0%

293.2

5.7%

Policy loans

138.7

2.9%

142.0

2.7%

Real estate

72.9

1.5%

71.5

1.4%

Cash and call loans

64.8

1.4%

58.1

1.1%

102.6

2.1%

123.7

2.4%

4,778.5

100.0%

5,172.9

100.0%

Japanese government and corporate
bonds: Continue to accumulategbonds in FY12
ultralong-term[Lengthened asset duration]
11 3
11.
3. 31 18.5
18 5 year
12. 3. 31 19.2 year
12. 12. 31 19.1 year

Others

Total■Investment in the monetary trusts is mainly into
Japanese government and corporate bonds.
■The holding■Th
h ldi ratio
ti on ththe reall status,t t
off JJapanese
government and corporate bonds including
those invested in monetary trusts in the generalaccount assets: As of Dec. 31, 2012: 90.2%(As of March 31, 2012: 89.2%)

14

Attachment

Highlights of Operating Performance:
Sony Assurance
Ordinary revenues

FY11.3Q(9M)

FY12.3Q
(9M)

60.1

63.8

+3.6

+6.1%

Underwriting income

59.4

63.0

+3.5

+6.0%

Investment income

0.6

0.7

+0.0

+14.2%

58.4

62.7

+4.3

+7.4%

Underwriting expenses

44.1

47.6

+3.4

+7.8%

Investment expenses

0.0

0.0

+0.0

157.0%

Operating general andOperating,administrative expenses

14.2

15.0

+0.8

+6.3%

Ordinary profit

1.6

1.0

(0.6)

(37.8%)Net income

0.5

0.5

+0.0

+13.3%

12.3.3112.12.31

Ordinary profit(Billions of yen)

63.8

Ordinary revenues

60 1
60.1
+6.1%

Ordinaryy expenses
p(37.8%)

1.6
FY11.3Q (9M)

1.0

FY12.3Q (9M)

Change(Billions of yen)

◆ Ordinary revenues increased but ordinary profit
decreased year on year.
◆ Ordinaryy revenues increased yyear on year,y ,owing to an increase in net premiums written,
as the number of insurance policies in force
grew primarily for automobile insurance.
◆ Ordinary profit decreased year on year, owing
to a rise in the loss ratio due mainly to higher
insurance payments per claim for automobile
insurance.

(Billions of yen)

Change from 12.3.31

Underwriting reserves

67.3

71.0

+3.7

+5.5%

Total net assets

18.0

18.7

+0.7

+4.2%

Total assets

118.6

123.3

+4.7

+4.0%

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

15

Overview of Operating Performance:
Sony Assurance<Reasons for changes>(Billions of yen)

FY11.3Q(9M)

FY12.3Q(9M)◆ Increased owing to an increase in thenumber of policies in force for
automobile insurance.
insurance

ChangeDirect premiums written

58.8

62.1

+5.7%

Net premiums written

59.4

62.9

+6.0%

Net losses paid

32.9

35.0

+6.3%

Underwriting profit

1.1

0.3

(69.7%)Net loss ratio

61.8%

62.4%

+0.6ptNet expense ratio

25.5%

25.5%

0.0pt

Combined ratio

87.4%

87.9%

+0.5pt◆ Increased owing mainly to an increasein the number of insurance payments
due to the higher number of policies inforce for automobile insurance.
insurance◆ Increased owing to higher insurance
payments per claim and loss
adjustment expenses for automobile
insurance.

Notes:Net loss ratio = (Net losses paid ＋Loss adjustment expenses) / Net premiums written
Net expense ratio = Expenses related to underwriting / Net premiums written

Number of policies in force
Non consolidated
Non-consolidated
solvency margin ratio

12.3.3112.12.31

1.49 million

1.54 million

557.8%

525.0%

Change from 12.3.31+0.05 million(32.8pt)+3.9%◆ Increased due to an increase in
the number of policies in force for
automobile insurance.
insurance

Note:*1 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.
*2 The non-consolidated solvency margin ratios are calculated based on the current standards applied from the endof fiscal 2011 (March 31, 2012).

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

16

Attachment

Sony Assurance’s Underwriting Performanceby Type of Policy
Net Premiums Written

Direct Premiums Written( Millions of yyen))

FY11.3Q(9M)

FY12.3Q(9M)

FY11.3Q(9M)

FY12.3Q(9M)

Change

Fire

68

80

+16.4%

Marine50105108.5%

Change( Millions of yen)

Fire

118

171

+45.3%

Marine－－－Personal accident *

5,517
,

5,883
,

+6.6%

Personal accident *

5,681
,

6,073
,

+6.9%

Voluntary automobile

53,17756,129+5.6%

Voluntary automobile

52,97855,922

+5.6%

647

805

+24.4%

59,426

62,987+6.0%

Compulsory
automobile liability
Total

－

－

－

58,812

62,185

+5.7%

Total

*SURE, medical and cancer insurance is included in personal accident

Net Losses Paid
( Millions of yen)Compulsory
automobile liability

FY11.3Q(9M)

FY12.3Q(9M)

Change
g

Fire

40

0

(98.0%)

Marine104160+53.8%

Personal accident*

1,352

1,467

+8.5%

Voluntary automobile

30,806

32,662

+6.0%

647

750

+15.9%%

32,95135,041+6.3%

Compulsory
automobile liability
Total

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

17

Sony Assurance Operating Performance (1)Net Premiums Written <9M> andNumber of Policies in Force (as of Dec. 31)
V l t
Voluntary
automobilet
bil iinsurance
Others

Personal accident insurance(Millions of policies)

Number of policies in force(Billions of yen)

80

1.47

1.36

+5.2%

70
60
50

0.5 54.9
5.5

0.7

1.54

6.0

5.6

(Billions of yen)

1.6

62.9 0.9

59.4

1.4

55.9

2.3

1
0.8

48.9

0.6

20

0.4

10

02
0.2

0

0
FY11.3Q(9M)

2.5

1.2

30

FY10.3Q(9M)

3

2

+6.0%

52.9
40

Ordinary Profit

FY12.3Q(9M)The number of p
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 99% of personal accident insurance is medical and cancer insurance.

1.6
1.5

(37.8%)

1.0
1

0.5

0
FY10.3Q (9M)

FY11.3Q (9M)

FY12.3Q (9M)Line item amounts are truncated below ¥100 million; number of policies aretruncated below 10,000 policies; percentage change figures are rounded.

18

Attachment

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

Net Expense Ratio+Earned/Incurred Loss Ratio
Earned/Incurred loss ratio

(%)

100

95.2

<Reference>

Net loss ratio

Net expense ratio

98.1
93.4

(%)

98.9

97.0

Net expense ratio

100

85.6

+1.9pt

89 0
89.0

84.7

+0.5pt

80

80

87 9
87.9

87.4

73.4
71 5 +1.9pt
71.5+1 9pt
60

62 4
62.4

72.4
69.7

68.4

+0.6pt

59.8

60.0
40

40

20

61.8

63.3

60

20
25.5

25.7

25.0

25.5

25.7

25.0

25 5 +0.0pt
25.5
25 5
0 0 t 25.5

25.5

25.5

+0 0pt+0.0pt

0

0
FY10

FY11

FY10.3Q

FY11.3Q

FY10

FY12.3Q

FY11

FY10.3Q

YonY cpmparison

9M Comparison

YonY comparison

Note:
Earned/Incurred loss ratio = (Net losses paid + Provision for reserve for outstanding
losses + Loss adjustment expenses) / Earned premiums.
[Earthquake insurance and compulsory automobile liability insurance are excluded
from the above calculation.]

FY11.3Q

FY12.3Q

9M Comarison

Notes:Net loss ratio= (Net losses paid + Loss adjustment expenses) / Net premiums written
Net expense ratio= Expenses related to underwriting / Net premiums written

19Sony Assurance Operating Performance (3)Non-consolidated Solvency Margin Ratio
(%)

1,200

800

631.0%%

557.8%(32.8pt)

525.0%

400

011.3.3112.3.3112.12.31

N t ThNote:
The non-consolidated
lid t d solvencylmargini ratios
ti are calculated
l l t d b
based
d on ththe currentt standards
t d d appliedli d ffrom th
the endd off fifiscall 2011 (M(Marchh 31,
31 2012)2012).

20

Attachment

Highlights of Operating Performance:
Sony bank (Consolidated/Non-consolidated)
Consolidated ordinary revenues
Consolidated ordinary profit

+5.5%

23.8

(0.9%)<Consolidated>

25.1

2.8

2.9

(Billions of yen)

FY11.3Q(9M)

FY12.3Q(9M)

Consolidated ordinary revenues

23.8

25.1

+1.3
1.3

+5.5%
5.5%

Consolidated ordinary profit

2.9

2.8

(0.0)

(0.9%)

Consolidate net income

1.1

2.2

+1.1

+95.0%

FY11.3Q(9M)

FY12.3Q(9M)

Ordinary revenues

22.1

22.8

+0.6

+2.8%

Gross operating profit

13.6

13.3

(0.3)

(2.2%)Net interest income

12.0

13.1

+1.0

+8.9%

Net fees and commissions

0.07(0.00)(0.07)―Net other operating income

1.4

0.1

(1.2)

(86.8%)

10.2

10.5

+0.3

+3.0%

Net operating profit

3.1

2.8

(0.3)

(11.3%)

Ordinary profit

2.9

2.6

(0.2)

(8.9%)Net income (loss)

1.6

(0.1)

(1.7)

-

12.3.3112.12.31<Non-consolidated>(Billions of yen)

FY11.3Q (9M)

ChangeFY12.3Q (9M) (Billions of yen)<Consolidated><C
lid t d>◆ Consolidated ordinary revenues increased year on year due to anincrease in net fees and commissions resulting from Sony Bank’s
acquisition of SmartLink Network, Inc. which became its consolidated
subsidiary. Consolidated ordinary profit remained at the same levels.
Consolidated net income increased due to recording deferred tax
assetst on theth salel off Sony
S
Bank
B kS
Securities
iti on A
Augustt 1
1, 20122012.
<Non-consolidated>◆ Gross operating profit decreased year on year.
-Net interest income increased owing to an increase in interest
income on loans led by a growing balance of mortgage loans anda decrease in interest expenses.
-Net feesfand commissions slightly decreased as SonyS
Bank
stopped charging for FX transactions.
-Net other operating income decreased reflecting lower gains onbond dealing transactions.
◆ Net operating profit decreased owing to higher general andadministrative expenses led primarily by personal reinforcement
for business expansion.
◆ Net income (loss) decreased owing to recording extraordinary
losses (¥2.8 billion) on the sale of Sony Bank Securities Inc.

General and administrative
expenses(Billions of yen)
Total net assets
Net unrealized gains on othersecurities (net of taxes)

Total assets

ChangeChange from 12.3.31

62.7

64.4

+1.6

+2.6%

17
1.7

40
4.0

+2.3
23

+130.3%130 3%

1,890.5

2,002.9+112.4+5.9%

Line item amounts are truncated below ¥100 million except for net fees and commissions;percentage change figures are rounded.

21

Overview of Operating Performance:
Sony Bank (Non-consolidated) (1)11.12.31

12.3.3112.12.31

Change from
12.3.31

Customer assets

1,783.4

1,864.3

1,973.0+108.7+5.8%

Deposits

1,688.3

1,762.2

1,868.4+106.1+6.0%

Yen

1 334 01,334.0

1 390 5
1,390.5

1,488.9

+98
98.3
3

+7
7.1%
1%

354.3

371.7

379.4

+7.7

+2.1%

Investment trusts

95.0

102.0

104.6

+2.5

+2.5%

L
Loans
outstandingt t di

805 9
805.9

835 5
835.5

929 7
929.7

+94 2
+94.2

+11 3%+11.3%

Mortgage loans

722.7

749.6

830.6

+81.0

+10.8%

Others

83.2

85.9

99.1

+13.1

+15.3%

11.86%

11.58%

10.71%(0.87pt)

9.85％

9.63%

8.91％

(0.72pt)((Billions of yen)y )Foreign currency

Capital adequacy ratio(domestic criteria) *2
Tier1 ratio*1*1 Loans in others include corporate loans of ¥92.5 billion.
*2 Please refer to the graph of the non-consolidated capital adequacy ratio (domestic criteria) on P25.

<Reasons for changes>◆ Yen depositspincreased due to thepositive effect of special offer forsummer 2012 bonus season, andshifting customer assets from foreign
currencies to yen deposits backed byyen depreciationyp
towards the end of
December 2012.

◆Foreign currency deposits increased
reflecting a positive impact fromforeign exchange conversion (+¥19.3 billion), despite a negative
impact from converting more foreign
currencies into yen led by yen
depreciation towards the end of
December 2012.
◆ Loan balance increased due to a
growing balance of mortgage loans,in addition to a highergcorporateploanbalance centered on syndicatedloans.

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

22

Attachment

Overview of Operating Performance:
Sony Bank (Non-consolidated) (2)<Reference> On Managerial Accounting Basis<Reference> Interest Spread(Managerial Accounting Basis)

FY11.3Q(9M)

FY12.3Q
(9M)

13 5
13.5

13 2
13.2

Net interest income*1 ①

12.6

13.0

+0.4

+3.3%

Net fees and commissions*2 ②

0.7

0.4

(0.3)

(42.0%)Net other operating income*3

0.1

(0.2)

(0.3)

―

Gross operating profit (core profit)(A)=①+②

13.4

13.5

+0.0

+0.6%

Operating expenses and otherexpenses ③

10.4

10.4

+0.0

+0.6%

Net operating profit (core profit)=(A) -③

3.0(Billions of yen)G
Grossoperatingti profit
fit

Change(0 3)(0.3)

Yield on financing

Yield on investment(2 2%)(2.2%)

Interest spread

(%)
2.0

1.5

1.36
1 28
1.28

3.0

+0.0

+0.9%

●Managerial accounting basis
The following adjustments are made to the figures on a financial accounting basis to accountfor profits and losses more appropriately.

0.95

1.0

*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 adjustments (*1 and *2), consists of profits andlosses for bond and derivative dealing transactions.
●Core basis
Profits and losses exclude net other operating income, which includes those on bond andderivative dealing transactions, and stands for Sony Bank’s basic profits.

05
0.5(0.04pt)

0.91

0.41

0 37
0.37

FY11.3Q (9M)

FY12.3Q (9M)00
0.0
Note: Interest spread=(Yield on investment)-(Yield on financing)Line item amounts are truncated below ¥100 million; percentage change figures are rounded.
The calculation method on a managerial accounting basis was partly changed from this fiscal year . Accordingly, the figures for FY11.3Q were retroactively calculated.

23

Operating Performance:
Sony Bank (Non-consolidated) (1)Loans

Deposits
Yen deposits

Foreign currency deposits

Mortgage loans

Others(Billions of yen)

1,200(Billions of yen)

1,868.4

2,000

1,649.1

1,762.2 +106.1

929.7

1,000

835.5
379.4

800

1,500

99.1

*Corporate loansof ¥92.5billion.

+94.2

722.4

600
1,000

830.6
400

1,488.9
500

200

0

0
11.3.3112.3.3112.12.31

11.3.3112.3.3112.12.31

Line item amounts are truncated below ¥100 million.

24

Attachment

Operating Performance:
Sony Bank (Non-consolidated) (2)Balance of Securities by Credit ratingsAAA
BBB(Domestic criteria)

AA
A
OthersCapital adequacy ratio

Tier1 ratio(%)(Billions of yen)

1,200

1,000

Non-consolidated Capital Adequacy Ratio

15

940.1

912.9

+38.9

11.58

951.8
10.84

800

10

10.41

(0.87pt)

10.71

8.91

9.63
(0.72pt)

600

400

5

200

0
11.3.3112.3.3112.12.31

0
11 3 3111.3.31

12 3 3112.3.3112 12 3112.12.31*Calculated based on the standard FSA Notification No. 19 2006), which establishes
standards based on Article 14-2 of the banking Act of Japan for determining the capital
adequacy of a bank in light of the assets held by the bank.
Line item amounts are truncated below ¥100 million.

25

Attachment

Consolidated Financial Forecast
for the Year Ending March 31,
31 2013

26

Consolidated Financial Forecast
for the Year Ending March 31, 2013
Ordinary revenues, ordinary profit and net income were revised upward.

(Billions of yen)

Consolidated ordinary revenues

FY11

FY12

FY12

ActualRevised Forecast

Previous Forecast

ChangeFY12 revised forecast vs.
FY12 previous forecast

1,078.0

1,157.0

1,115.0+42.0Life insurance business
Non-life insurance businessBanking business

967.5
80.0
32.5

1,038.1
85.0
34.5

994.5
85.0
34.5

+43.6
-

Consolidated ordinary profit

74.6

74.0

67.0

+7.0

Life insurance business
Non-life insurance businessBanking business

68.1
2.8
3.4

68.5
2.6
3.6

61.5
2.6
3.6

+7.0
-

Consolidated net income

32.8

41.0

37.0

+4.0

■Life insurance business:
SFH revises upward its consolidated financial forecast for the year ending March 31, 2013. This is because the operating results in bothordinary revenues and ordinary profit for the nine months ended December 31, 2012 exceeded our previous forecast.
■Non-life insurance business
The forecast of ordinary revenues and ordinary profit remains unchanged from the previous forecast.
■Banking business
The forecast of ordinary revenues and ordinary profit remains unchanged from the previous forecast.
Notes:
1. Line item amounts are truncated below ¥100 million.
2. On February 7, 2013, we revised the financial forecast announced on May 10, 2012.

27

Attachment

Sony Life’s MCEV
andRisk Amount Based on Economic Valueas of December 31, 201228

Sony Life’s MCEV and Risk Amount Based on
Economic Value as of December 31, 2012

(Billions of yen)

MCEV

12.3.3112.12.31(JGB yield)(JGB yield)

Change1,041.5

1,079.4+37.8

Adjusted net worth

409.2

450.3

+41.1

Value of existing business

632 4
632.4

629 1
629.1

(3 3)
(3.3)

(1) Calculated MCEV for policies in force as of December 31, 2012 by using updated lapse and surrender rate and economic assumptions.
(2) Adopted simplified method for a part of MCEV calculations as of December 31, 2012.

(Reasons for change)
 MCEV increased due to the steady addition of new business value.

(Billions of yen)

The risk amount based on economic value

12.3.31551.5

12.12.31

Change

602.6

+51.1

N t MeasurementNote:Mt off riski k basedbd on economic
i valuel takest k one-year VaR
V R to
t be
b 99
99.5%
5% andd iis measuredd usingi an internali tl modeld l ththatt refers
f
to
t the
th
EU Solvency II (QIS5) standard model.

* Please keep in mind that the validity of these calculations has not been verified by outside specialists.

29

Attachment

Appendix

30

Recent Topics 1
AEGON SONY LIFE INSURANCE Sales Update
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: Individual Variable Annuities (2 types, 4 products*)
Sales Channels: Lifeplanner sales employees and partner Banks (9*)(9 ) *AsAs of February14, 2013
Financial Highlights for FY12.3Q(9M):Number of new policies: 3,974, New policy amount: ¥27.3 billion
Number of policies in force: 7,560, Policy amount in force: ¥57.7 billion (As of December 31, 2012)

Sony Bank’s Mortgage Loans through Sony Life
■Sony Life accounts for 25% of the balance of mortgage loans
as of December 31, 2012
Sony Life accounts for 24% of the amount of new mortgage loans for FY12.3Q(9M).
*Sony Life started handling banking agency business in January 2008.

Sony Assurance’s Auto Insurance Sold by Sony Life
■ Sony Life accounts for approx. 5% of new automobile policies for FY12.3Q(9M).
* Sony Life started handling automobile insurance in May 2001.

“Lifeplanner” is a registered trademark of Sony Life Insurance Co., Ltd.

31

Attachment

Recent Topics 2<Highlight for FY12.3Q>
2012-10-01 Sony Assurance made a commitment of an initial response by an appointed staff member within an hour after receiving an
accident reportp for automobile insurance p
policyholdersy2012-10-11 Sony Assurance added a GPS system to its free application, “Trouble Navigation” for smart phone users
2012-10-19 Sony Life launched the second phase of its “Co-Creation Project”
2012-10-22 Sony Bank began offering Chinese Yuan(CNH), South African Rand and Swedish Krona for foreign currency deposits
2012-11-01 Sony Assurance revised automobile insurance details including a discount on paperless insurance policies and establishinga new rider, commencing on or after November 1, 20122012-11-14 Sony Financial Holdings announced the dividend forecast (increased dividend) for the year ending March 31, 2013.
2012-12-01
2012
12 01 Sony Bank reduced exchange transaction fees for its all twelve foreign currency deposits and revised preferential systemsystem.
2012-12-06 Sony Life transferred the business of Sony Life Insurance (Philippines) Corporation2013-1-14

Sony bank launched new financial products intermediary services with Monex Group

2013-1-28

Sony bank began providing Windows 8 application, “Easy Foreign Currency Chart”

2013-1-31

Sony Financial Holdings issued No. 2 unsecured corporate bonds(The bonds were raised as a loan aimed at reinforcing Sony Bank’s financial base on February 1. 2013)32

Sony Life: Fair Value Information on Securities(General Account Assets)
Fair Value Information on Securities
Fair value information on securities with market value (except trading-purpose securities)(Billions of yen)Valuation gains (losses) on trading-purpose securities(Billions of yen)

Notes: 1) Line item amounts are truncated below ¥100 million. 2) Amounts above include those categorized as “monetary trusts.”

33

Attachment

Sony Life’s Interest Income and Dividends (Details)(Thousands of yen)

FY11.3Q(9M)

FY12.3Q(9M)

Change

8

8

+7.0%

56,949,370,,

64,739,220,,+13.7%

Japanese stocks

527,819

351,448(33.4%)

Foreign securities

2,294,520

2,802,992+22.2%

Other securities

241,659

177,645(26.5%)

Loans

4,022,561

4,085,144+1.6%

Real estate

8,438,666

8,143,397(3.5%)

74,081

57,550(22.3%)

72,548,689

80,357,408+10.8%Cash and deposits
Japanese government andcorporate bonds

Others
Total

Line item amounts are truncated below ¥1,00034

Contact:
Corporate Communications & Investor Relations Department
Sony Financial Holdings Inc.

TEL： +81-3-5785-1074

35