Sony 2003 Annual Report Download - page 98

Consolidated Financial Information 2003
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was in Japan, including production of digital still cameras, semiconductors, personal digital assistants, components
(including batteries and Memory Stick), and plasma televisions. Approximately 55 percent of production in Japan
was destined for other regions. Asia, here excluding Japan and China, accounted for more than 15 percent of total
production, more than 60 percent of which was destined for Japan, the U.S. and Europe. China accounted for less
than 10 percent of total production, more than 70 percent of which was destined for Japan, the U.S. and Europe. The
Americas and Europe together accounted for the remaining quarter of total production, most of which was sold in the
area where it was produced.
Comparison of Results on a Local Currency Basis and Results on a Yen Basis
Results in the Electronics segment, on a yen basis, were positively impacted overall by the appreciation of the
euro against the yen, although this impact was partially offset by the negative impact of the depreciation of the U.S.
dollar against the yen. On a local currency basis, sales for the fiscal year ended March 31, 2003 decreased by
approximately 7 percent compared with the previous fiscal year and an operating income was recorded where an
operating loss had been recorded in the previous fiscal year.
Due to the negative impact of the depreciation of the U.S. dollar against the yen, year on year increases in sales
of products in the U.S. were generally smaller, and decreases generally larger, when stated in yen than when stated
on a local currency basis. However, no products which recorded a sales increase on a local currency basis recorded
a sales decrease on a yen basis.
Sales in Europe were positively affected by currency fluctuations, in particular the appreciation of the euro
against the yen. Year on year increases in sales of products in Europe were generally larger, and decreases
generally smaller, when stated in yen than when stated on a local currency basis. Regarding significant differences
between results on a yen basis and results on a local currency basis, CRT televisions and home-use video cameras
recorded an increase in sales on a yen basis but a decrease in sales on a local currency basis while portable audio
and batteries, which all recorded increases in sales on a yen basis, were flat year on year on a local currency basis.
The net effect of currency fluctuations on product sales in Other Areas was negative. Sales increases were
generally smaller, and decreases larger, when stated in yen than when stated on a local currency basis. Regarding
significant differences between results on a yen basis and results on a local currency basis, sales of CRT televisions
were flat year on year on a local currency basis but showed a slight decrease on a yen basis. Sales trends for other
products were not significantly different on a local currency basis or a yen basis.
Game
Sales for the fiscal year ended March 31, 2003 decreased by 48.7 billion yen, or 4.9 percent, to 955.0 billion yen
compared with the previous fiscal year. Operating income increased by 29.7 billion yen, or 35.9 percent, to 112.7
billion yen compared with the previous fiscal year, and the operating income margin increased from 8.3 percent to
11.8 percent.
Sales in the Game segment were positively impacted by the yen’s depreciation against the euro. On a local