Sony 1999 Annual Report Download - page 2

Financial Highlights
Sony Corporation and Consolidated Subsidiaries
Year ended March 31
TABLE OF CONTENTS
To Our Shareholders 1
Business Overview 6
Topics 8
Review of Operations
Electronics 12
Game 18
Music 20
Pictures 22
Insurance 24
Environmental Activities at Sony 26
Management 28
29 Management’s Discussion and Analysis of
Financial Condition and Results of Operations
43 Quarterly Financial and Stock Information
44 Five-Year Summary of Selected Financial Data
45 Composition of Sales and Operating Revenue
by Business and Geographic Segment
46 Consolidated Balance Sheets
48 Consolidated Statements of Income
49 Consolidated Statements of Cash Flows
50 Consolidated Statements of Changes in
Stockholders’ Equity
52 Notes to Consolidated Financial Statements
76 Reports of Independent Accountants
78 Investor Information
Cautionary Statements With Respect to Forward-Looking Statements
Statements made in this annual report with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not
historical facts are forward-looking statements about the future performance of Sony. These statements are based on management’s assumptions
and beliefs in light of the information currently available to it and therefore you should not place undue reliance on them. Sony cautions you that
a number of important factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such
factors include, but are not limited to (i) general economic conditions in Sony’s markets, particularly levels of consumer spending; (ii) exchange
rates, particularly between the yen and the U.S. dollar, and other currencies in which Sony makes significant sales or in which Sony’s assets and
liabilities are denominated; and (iii) Sony’s ability to continue to design and develop and win acceptance of its products and services, which are
offered in highly competitive markets characterized by continual new product introductions, rapid developments in technology (particularly in
the Electronics business), and subjective and changing consumer preferences (particularly in the Game, Music and Pictures businesses).
Sony Corporation Annual Report 1999
Dollars in
Yen in millions thousands except
except per share amounts per share amounts
OPERATING RESULTS 1998 1999 1999/1998 1999
FOR THE YEAR
Sales and operating revenue . . . . . . . . . ¥6,755,490 ¥6,794,619 +0.6% $56,621,825
Operating income . . . . . . . . . . . . . . . . 520,210 338,649 –34.9 2,822,075
Income before income taxes . . . . . . . . . 453,749 368,128 –18.9 3,067,733
Net income. . . . . . . . . . . . . . . . . . . . . 222,068 179,004 –19.4 1,491,700
Per share data:
Net income–Basic . . . . . . . . . . . . . . ¥ 557.7 ¥ 436.9 –21.7% $ 3.64
–Diluted . . . . . . . . . . . . 483.4 391.0 –19.1 3.26
Cash dividends . . . . . . . . . . . . . . . . 60.0 50.0 0.42
AT YEAR-END
Stockholders’ equity . . . . . . . . . . . . . . . ¥1,815,555 ¥1,823,665 +0.4% $15,197,208
Total assets . . . . . . . . . . . . . . . . . . . . 6,403,043 6,299,053 –1.6 52,492,108
Number of employees . . . . . . . . . . . . . . 173,000 177,000
Notes: 1. U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥120=U.S.$1, the approximate Tokyo foreign
exchange market rate as of March 31, 1999.
2. As of March 31, 1999, Sony had 1,041 consolidated subsidiaries. It has applied the equity accounting method in respect to its 65 affiliated
companies.
3. Cash dividends per share for the year ended March 31, 1999 include a year-end dividend of ¥25 ($0.21), which is subject to approval of the
ordinary general meeting of stockholders to be held on June 29, 1999.
4. Income before income taxes and net income figures for the fiscal year ended March 31, 1999 include gains of ¥58.7 billion ($489 million)
and ¥30.7 billion ($256 million), respectively, which resulted from a contribution of securities to an outside trust for employee retirement
benefit purposes.
Percent change