Sony 2002 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2002 Sony annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

18
Sony Corporation Annual Report 2002
And, as part of recently announced global partnerships with SPE
and SMEI, Sony Ericsson will enable consumers to personalize their
phones with Sony wallpapers and screensavers from Sony films, and
downloadable ringtones from Sony Music’s and Sony/ATV Music
Publishing’s top artists and writers. A new phone will also feature two
games – Men in Black and Charlie’s Angels – created by Sony Pictures
Digital Entertainment.
The Sony Group’s Financial Strategy
Question: Would you provide an outline of Sony’s earnings forecast for the fiscal year ending
March 2003?
Tokunaka CFO Although we are seeing signs of an economic upturn, I expect our
operating environment to remain uncertain, especially during Fiscal
Year 2002’s first half. I don’t expect to see a broad-based recovery in
our results until at least the year’s second half. For the full year,
though, we are forecasting another increase in sales. And we expect
a substantial improvement in operating income because of a strong
recovery in Electronics business earnings and by benefiting from the
harvest stage for the PS2 format.
Question: What are your plans for strengthening Sony’s financial position?
Tokunaka CFO We generated a positive free cash flow in Fiscal Year 2001 and will
continue to prioritize cash flow in Fiscal Year 2002. Although we
will have to invest in new flat panel display and semiconductor
technology in the long-term, we plan to reduce capital expenditures
by more than 10% in Fiscal Year 2002.
Regarding our financial strength, we plan to reduce interest-
bearing debt during Fiscal Year 2002. For example, our target for
debt to equity is less than 50%. We also have a goal of achieving
return on equity of at least 10% over the medium term.