Sony 2003 Annual Report Download - page 91

Consolidated Financial Information 2003
5
Sales
Sales for the fiscal year ended March 31, 2003 decreased by 104.6 billion yen, or 1.4 percent, to 7,473.6 billion
yen compared with the previous fiscal year. A further breakdown of sales figures is presented under “Operating
Performance by Business Segment” below.
Cost of Sales and Selling, General and Administrative Expenses
Cost of sales for the fiscal year ended March 31, 2003 decreased by 260.2 billion yen, or 5.0 percent, to 4,979.4
billion yen compared with the previous fiscal year, and decreased from 74.2 percent to 72.0 percent as a percentage
of sales. Year on year, the cost of sales ratio decreased from 80.5 percent to 78.8 percent in the Electronics segment,
74.7 percent to 70.2 percent in the Game segment, and 62.0 percent to 58.2 percent in the Pictures segment.
However, the cost of sales ratio increased from 57.6 percent to 60.8 percent in the Music segment. The cost of sales
ratio in the Electronics segment improved due to the effects of prior restructuring and other cost reduction measures,
and the cost of sales ratio in the Game segment improved due to reductions in PlayStation 2 hardware production
costs. These improvements occurred despite declining sales in the Electronics and Game segments. The cost of
sales ratio in the Pictures segment improved due to increased revenue resulting from the strong worldwide
performance, both theatrically and in home entertainment, of current year releases. The cost of sales ratio in the
Music segment deteriorated due to decreased revenue from album sales resulting from the continued contraction of
the global market for music.
Although the cost of sales ratio decreased year on year, assisted by the positive effect of the appreciation of the
Segment Nature of Restructuring
Costs incurred in the
fiscal year ended
March 31, 2003
Additional Information
Reduction of CRT
production capacity in
Japan and SE Asia
6.9 billion yen
Remaining reserve balance of 0.4 billion yen at
March 31, 2003, to be used during the fiscal year
ending March 31, 2004.
Personnel reductions and
closure of all Aiwa’s
facilities
23.0 billion yen No reserve remaining at March 31, 2003.
Closure of semiconductor
plant in U.S. 5.9 billion yen
Remaining reserve balance of 1.5 billion yen at
March 31, 2003, to be used during the fiscal year
ending March 31, 2004.
Additional charges of 2.2 billion yen expected to be
incurred up to March 31, 2004.
Electronics
Early retirement program 10.9 billion yen
Remaining reserve balance of 1.0 billion yen at
March 31, 2003 to be used during the fiscal year
ending March 31, 2004.
Music
Closure of CD and cassette
manufacturing and
distribution facility in
Holland, CD manufacturing
facility in U.S., and others
23.9 billion yen
Remaining reserve balance of 11.5 billion yen at
March 31, 2003 to be used by March 31, 2006.
Estimated total charges at SMEI, for years ended
March 31, 2001 to March 31, 2006, are 43.4 billion
yen with an estimated 4.5 billion yen of these
charges expected to be incurred in the future.