Sony 2001 Annual Report Download - page 87

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Sony Corporation Annual Report 2001
85
In the Pictures business, sales are expected to increase slightly primarily because revenues from production
and distribution in the television business are expected to increase in international markets outside the U.S.,
although box office revenues from films to be released in the fiscal year ending March 31, 2002 are expected to
be flat. Regarding profit performance, operating income is expected to increase primarily due to expected
improvement in the profit performance of films to be released in the upcoming year as opposed to the prior year
films, and due to cost reduction efforts.
In the Insurance business, revenue is expected to increase because a net increase in insurance-in-force is
expected both in the life insurance business and the non-life insurance business. Regarding profit performance,
primarily due to the increases in revenues, overall operating income is expected to increase because operating
income in the life insurance business is expected to increase and losses in the non-life insurance business are
expected to decrease.
In the Other business, operating losses are expected to decrease primarily because losses of location-based
entertainment businesses in Japan, the U.S., and Germany are expected to decrease.
Other income in the fiscal year ending March 31, 2002 is expected to decrease primarily because the
previous year included gains on sales of securities investments and other, net and gains on issuance of stock by
equity investees (refer to page 69).
Regarding Aiwa Co., Ltd., an approximately 51% owned consolidated subsidiary of Sony Corporation, reorgani-
zation expenses, such as severance expenses and losses on the sale and disposal of long-lived assets, relating to
the execution of the realignment of businesses which was announced in March 2001, are expected to negatively
affect Sony’s consolidated results in the fiscal year ending March 31, 2002. Aiwa Co., Ltd. also announced its
plans to carry out a one-for-one rights issuance to shareholders for such purposes as funding its restructuring
measures. The total size of the rights issuance will be approximately 35.0 billion yen and payment for such
shares will be due on July 30, 2001. Sony Corporation plans to assume the rights issuance in proportion to its
interest in Aiwa Co., Ltd.
Equity in net losses of affiliated companies accounted for under the equity method in the fiscal year ending
March 2002 is expected to decrease primarily because of the absence of the negative effect relating to Loews in
the previous year (refer to page 71), and results of certain affiliated companies such as CHC and Telemundo are
expected to improve.
Dividend Policy
A year-end cash dividend per share of Sony Corporation at the rate of 12.5 yen will be subject to approval at the
Ordinary General Meeting of Shareholders, which will be held on June 21, 2001. Sony Corporation has already
paid 12.5 yen per share to each shareholder; accordingly the annual cash dividend per share will be 25.0 yen.
As for retained earnings, Sony plans to utilize them to carry out various investments that are important for
ensuring future growth and strengthening competitiveness. Sony believes that by continuously increasing
corporate value, each shareholder can be rewarded.