Sony 2004 Annual Report Download

Download and view the complete annual report

Please find the complete 2004 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 110

  • 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
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

Table of contents

  • Page 1

  • Page 2
    ..., motion control, communications, IT and AI. Through QRIO's continued growth and development, Sony will pursue the infinite possibilities of curiosity. The resulting technologies will be applied to a wide range of products and services, beyond robots, to enhance the joy of life. Let's discover...

  • Page 3
    1

  • Page 4
    ... higher revenue in the Financial Services segment. Measures taken to bolster our lineup of electronics products proved to be particularly beneficial. Our aggressive launch of new products in such categories as digital still cameras, flat panel televisions and DVD recorders led to significant sales...

  • Page 5
    ...Home Electronics • Mobile Electronics • Game • Entertainment • Financial Services • Other Report 30 The Inside Story from Sony's Nagasaki Fab Products 11 Sony Products File 01-06 • File 01 - Flat Panel Television "WEGA" • File 02 - DVD Recorder "Sugoroku" • File 03 - DVD Recorder...

  • Page 6
    ...efficiency by leveraging information systems to strengthen both our demand and supply chain management operations. Our convergence strategy for the entertainment business is equally important. We plan to capitalize on our entertainment assets in music, pictures and games to increase the value of our...

  • Page 7
    ... 60" - a group-wide mid-term corporate strategy "Transformation 60" has set in motion sweeping reforms for the entire Sony Group. The objective is to ensure that Sony remains as one of the world's leading consumer brands in the 21st century by developing attractive products, content and services...

  • Page 8
    ... holding company will play a pivotal role in our drive to create synergies among our life insurance, non-life insurance and banking businesses, and to increase the total value of our financial services business. What are Sony's primary objectives for the fiscal year ending March 31, 2005? I view...

  • Page 9
    ... on strategic businesses; (2) accelerating reform in global manufacturing activities; (3) streamlining administrative, sales and marketing operations; (4) transforming design processes, quality management and the procurement of production materials; and (5) restructuring the procurement strategy for...

  • Page 10
    ... the management of the Sony Group's semiconductor business. The aim is to make our semiconductor business more competitive through unified strategies. In the fiscal year ended March 31, 2004, we designated flat panel televisions, DVD recorders, digital still cameras, video cameras and VAIO PCs as...

  • Page 11
    ... focus on strategic businesses (2) Accelerating reform in global manufacturing activities (3) Streamlining administrative, sales and marketing operations (4) Transforming design processes, quality management and the procurement of production materials (5) Restructuring the procurement strategy for...

  • Page 12
    ...phone, are an essential part of my life at home and at the Montreux Sounds Video Studio. At the studio, I use an XPRI HD (high-definition) non-linear video production system for editing and transferring material. I also have a D-2, Digital Betacam, Betacam SP (Super Performance) and IMX, which I use...

  • Page 13
    ... Today, those tackling the challenge of devising new Sony products are motivated by a single thought-to create unique products that inspire and bring joy to consumers. The following pages take a close look at some of these products through interviews with the developers who helped bring them to life...

  • Page 14
    ...total global market (by value) for CRT, rear-projection and flat panel televisions. Yoshihiro Yamamoto General Manager Systems Technology Section Display Solutions Department Home Electronics Development Division Home Electronics Network Company Noriyasu Yamada Product Planning Manager FTV Product...

  • Page 15
    ...Recorder Strategy Manager Product Planning Section 1 Product Planning Department Video Group Home Electronics Network Company Hitoshi Hiraga Senior Manager Section 1 Department 1 DVD Division Video Group Home Electronics Network Company Jun Watanabe Senior Manager Section 4 Video Products Software...

  • Page 16
    ... software and online games. You can even play games while recording a television program. http://www.sony.net/ PSX-A world of entertainment in one box An industry first: The convergence of games and electronics in a single unit Enhanced user control thanks to a GUI that is supported by PlayStation...

  • Page 17
    ...hard disk recordings and DVD operations. The concept of AV and PC convergence, central to the VAIO lineup, is now entering a new phase-one that will open up a new chapter in PC history. Yoichiro Hachiya Assistant Manager Product Planning Dept. IT Company IT & Mobile Solutions Network Company Naoki...

  • Page 18
    ... users to immediately view and share photos with friends and family on the large 2.5 inch LCD monitor, a capability no conventional digital still camera can match. Yasushi Noda Product Manager Group 2 Product Design 2 Department DSC Division Personal Imaging Company IT & Mobile Solutions Network...

  • Page 19
    ..., Sony engineers are working hard to pull a few more exciting surprises out of the hat for video camera users around the world. Tadayuki Miyamoto Project Leader Design 2 Section 2 Group Camcorder Business Section Personal Video Company IT & Mobile Solutions Network Company Yukiko Sakota Planning...

  • Page 20
    ...(OEL) displays; Memory Stick; optical devices; and lithium-ion batteries. These components are essential for producing highly competitive products. Cell: The next generation, multi-purpose microprocessor Differentiating products by strategic component Over the years, Sony's ability to develop such...

  • Page 21
    ...and other imaging components used in video cameras and digital still cameras. pursuit of implementing a vertically integrated business model that will enable us to create distinctive new products. What kind of measures is Sony taking to secure a stable supply of key components? To meet the explosive...

  • Page 22
    ..., digital still cameras, televisions, PC monitors and rearprojection televisions. To ensure a stable supply of LCD panels to meet the expected growth in demand for large screen LCD televisions, Sony and Samsung Electronics Co., Ltd. established S-LCD Corporation. This joint venture will develop and...

  • Page 23
    ... and other components used in CD and DVD players and recorders, PlayStation 2, disk drives for PCs, the video camera DVD Handycam and other products. Sony is the industry leader in the field of optical pickups for audio-visual equipment. Currently, demand for DVD optical pickups and semiconductor...

  • Page 24
    ...the world's first Blu-ray Disc recorder. By using the same MPEG2TS video recording method used in BS digital TV broadcasts, this unit can record more than Blu-ray Disc The development of three-wavelength recording/playback optical pickups that are compatible with Blu-ray Disc, DVDs and CDs Sony has...

  • Page 25
    ... store offering a slice of American life. It was an ideal place to see the kinds of things you couldn't find in Japan back then and I often went there. Sony has been an important part of my life. Good instructors should listen to themselves I have used a recordable Walkman for more than 20 years...

  • Page 26
    ... next three years Sony is focusing on semiconductors, displays and home servers as its key strategic fields for R&D over the next three years Semiconductors In electronics, added value has migrated from finished products to key components. In light of this, Sony regards the semiconductor business as...

  • Page 27
    ... of DVD or Blu-ray Disc recorders equipped with hard disk drives, as well as content service and network portals. Possessing many of the world's most advanced technologies in both semiconductor lasers and optical pickups, Sony is set to become the industry leader in an emerging network server market...

  • Page 28
    ... sincere determination and great joy in introducing new qualia to the world. In the electronics field, we will realize the "QUALIA Movement" through our product creation, marketing and service activities, offering unique emotional value that touches people's hearts. http://www.sony.net/QUALIA/ 26

  • Page 29
    27

  • Page 30
    ...manufacturing process for semiconductors and components that extends to the point where they are incorporated on the circuit board and as parts of products in the assembly process. Concurrent to this, Sony is assembling a powerful supply chain management system and raising overall production-related...

  • Page 31
    ... response to market needs while strengthening manufacturing and sales activities within each region. Production Locations and Destinations of Electronics Products Europe China North America SE Asia Japan â- Japan â- North America â- Europe â- SE Asia â- China A new information system...

  • Page 32
    ... of the facility is "Sony Computer Entertainment Fab." Following the integration of the semiconductor production businesses of the Sony Group, the name will be changed to "Sony Semiconductor Kyushu Corporation Nagasaki Technology Center" on July 1, 2004. The strategic base for next generation key...

  • Page 33
    ... in the global semiconductor industry using a 90 nanometer mass-production process, giving Nagasaki Fab recognition as one of the world's most advanced wafer fabs. Solutions Network Company (SSNC) was established within Sony Corporation. This gave the Sony Group an integrated framework within which...

  • Page 34
    ... PSX, a DVD recorder. Benefits of this chip include reductions in both power consumption and production costs. This line is planned to be used for the production of the CPU for PlayStation Portable (PSP), a handheld video game system that is expected to go on sale during the fiscal year ending March...

  • Page 35
    ..., will be indispensable elements in the Sony Group's design and development of various digital consumer electronics products and computer entertainment system in the years ahead. Overview of Nagasaki Fab Location: Isahaya City, Nagasaki Prefecture, Japan Total site area: 99,000m2 Clean room floor...

  • Page 36
    ...of Sony mobile devices in my work, like a cellular phone and CLIÉ, the personal digital assistant, but I have even more Sony products at home. Inside an antique wooden cabinet in my living room are numerous Sony products, including an AV amplifier, an Airboard location free television, a DVD player...

  • Page 37
    ... in Japan. Currently, he manages IGC Japan Ltd., a gymnastics program for children, and The Resource Group, an organization that recycles medical equipment. IGC Japan URL: http://www.igcjapan.com/ The "Lance Lee Method" for recording athletics I bought my first Sony video camera in the early 1980s...

  • Page 38
    ... Performance Highlights Electronics Audio Principal Products Home audio, portable audio, car audio and car navigation systems Video Principal Products Video cameras, digital still cameras, video decks, DVD players/recorders and set-top boxes Televisions Principal Products CRT televisions...

  • Page 39
    ..., batteries, audio/video/ data recording media and data recording systems Principal Products Aiwa products, entertainment robots, cellular phones (mainly sold to Sony Ericsson), and products and services not included in other categories Fiscal Year in Review Sales decreased 0.2%. Although the VAIO...

  • Page 40
    ... business is conducted by Sony Computer Entertainment Inc. Description of Business Music business is conducted by Sony Music Entertainment Inc. (SMEI) and Sony Music Entertainment (Japan) Inc. (SMEJ). Game Music http://www.sony.net/games/ http://www.sony.net/music/ EVANESCENCE Fiscal Year...

  • Page 41
    ...Bank Inc. and Sony Finance International, Inc. Description of Business The Other segment includes an Internet-related business, So-net, which is conducted by Sony Communication Network Corporation, an in-house information system services business, an IC card business and other businesses. Pictures...

  • Page 42
    ... goods in the world Sony is implementing a growth strategy for its electronics business by refining the definition of home and mobile electronics. Semiconductors and other key components, which support the development of new products, are vital both for differentiating Sony's products from those of...

  • Page 43
    ... By utilizing these new networks, and through the development of completely original media and services, Sony aims to make entertainment an even more inspiring experience. Mobile Electronics Game Constant Transformation Entertainment Entertainment Financial Services The convergence of pictures and...

  • Page 44
    ... advanced televisions, Sony has focused on developing such innovative technologies as Wega Engine and SXRD (Silicon X-tal Reflective Display). Unlike any other company, the Sony Group has an entertainment portfolio comprising motion pictures, music and game, in addition to its electronics business...

  • Page 45
    ... as Blu-ray Disc and the new microprocessor for the broadband era, Cell, and will evolve into a device capable of acting as a home server. Along with multifunction digital television, it will become a core element of broadband network systems within the home. DVD recorder Sugoroku Super Audio CD/DVD...

  • Page 46
    ...of the mobile electronics market include the video camera Handycam, the digital still camera Cybershot, the portable audio Walkman and the VAIO notebook PC. In the fiscal year ended March 31, 2004, Cybershot DSC-T1 garnered the top share in Japan's digital still camera market, while in the U.S., DVD...

  • Page 47
    ... and many other types of data, opening up more potential applications for this new format. * Recording time from a PC using ATRAC3plus at 48 kbps to a 1 GB Hi-MD disc. Mobile Electronics Portable music player VAIO pocket Game Hi-MD Walkman PC VAIO type U Entertainment Established on October...

  • Page 48
    ... in the worldwide game market, both SCE and other game software developers/ publishers expect the peak years of the PS2 software business to continue. Cumulative Production Shipments of PlayStation Hardware by Geographic Region (as of May 18, 2004) Japan and Asian region North America Europe (PAL...

  • Page 49
    ... PS2. SCE and other game software developers/publishers are planning to launch a stream of titles compatible with the EyeToy USB camera. Mobile Electronics Game PlayStation Portable (PSP) Universal Media Disc (UMD) Generating a new computer entertainment system By providing advanced technologies...

  • Page 50
    ... with the Connect store. By the end of 2004, that number is expected to increase to nearly 7 million. In addition to Hi-MD Walkman digital music players, other compatible devices include Net MD Walkman recorders, ATRAC CD Walkman players and Network Walkman players. This year Sony expects to...

  • Page 51
    ... convenience and flexibility for consumers. Moreover, Sony's entertainment companies are positioning themselves for the next generation of media distribution and content creation. For example, SPE's home entertainment group plans to distribute its movies in the Blu-ray Disc format for storing high...

  • Page 52
    .... Through its Sony Music Mobile Group, the music company supplies mobile products and services in more than 15 countries and develops a number of unique product lines. Among them are Sony Music Box, a next generation on-handset content browsing service; RUNpics, a leading mobile imaging service; and...

  • Page 53
    ... to offer its library to new distribution outlets. Moreover, SPE plans to support the launch of the PSP portable player and the Blu-ray high definition formats. Having established a leading position in digital effects and animation through Sony Pictures Imageworks, SPE looks to extend further...

  • Page 54
    ... insurance and banking functions, and offering high added-value products and high-quality services Teruhisa Tokunaka, Executive Deputy President, Representative Corporate Executive Officer of the previous fiscal year, as these businesses continued to expand. The financial services market in Japan...

  • Page 55
    ... services of Sony Life. Furthermore, at Sony Bank, Sony Life's group credit life insurance policies are offered to customers who apply for housing loans from Sony Bank. SFH intends to accelerate its integration strategy in order to continue offering competitive, value-added products and services...

  • Page 56
    ... can be used in public phones and convenience stores. FeliCa technology has also been adopted for use in electronic payment systems for the purchase of food and beverages at stores and shopping centers, as well as for ID and access control for corporate offices and schools. In Japan, FeliCa is...

  • Page 57
    ...Walkman Sony's Advertising Around the World To promote its products and brand, Sony conducts advertising around the world in a style that matches the cultures and customs of individual countries and regions. Japan-QRIO robot U.S.-Digital still camera China-DVD player Canada-Flat panel television...

  • Page 58
    ... the execution of their respective business operations. Using their authority and carrying out their responsibilities within the scope delegated to them by the Board of Directors, these officers work toward enhancing the Sony Group's corporate value. Executive Officers ("Gyomu shikko-yakuin"): These...

  • Page 59
    ...Directors the reasons behind their business decisions. Corporate Social Responsibility (CSR) As a global organization, the Sony Group conducts its business activities with due consideration of the interests of its various stakeholders, including shareholders, customers, employees, business partners...

  • Page 60
    ... Business Group), Sony Group Americas Representative Shizuo Takashino Executive Deputy President and COO (in charge of IT & Mobile Solutions Network Company and Professional Solutions Network Company) Ken Kutaragi Executive Deputy President and COO (in charge of Game Business Group, Home Electronics...

  • Page 61
    ... ...Five-Year Summary of Selected Financial Data ...Quarterly Financial and Stock Information ...Segment Information ...Consolidated Balance Sheets ...Consolidated Statements of Income ...Consolidated Statements of Cash Flows ...Consolidated Statements of Changes in Stockholders' Equity ... 60...

  • Page 62
    ... in the Electronics, Music and Pictures segments. Of the total 168.1 billion yen, Sony recorded 133.4 billion yen in personnel related costs. This expense was incurred because 9,000 people, mainly in Japan, the U.S. and Western Europe, left the company primarily through early retirement programs. Of...

  • Page 63
    ... liability balance of 6.2 billion yen at March 31, 2004 will be paid or settled during the fiscal year ending March 31, 2005. Electronics Reduction of TV display CRT production capacity in Japan Early retirement program Closure of CD manufacturing facility in U.S., restructuring of the music...

  • Page 64
    ... group that was accounted for under the equity method. Partially offsetting the decrease in other 600 500 7.5% 10 8 6 4 400 6.1% 6.4% 300 200 100 0 2 0 02 03 04 í Research and development expenses ć Percentage of sales * Year ended March 31 * Excluding the Financial Services segment...

  • Page 65
    ... for Sony Ericsson's products, particularly in the Global System for Mobile Communications ("GSM") and Japanese markets, and due to improvements in operating efficiencies at the company. Moreover, ST Liquid Crystal Display Corporation ("ST-LCD"), an LCD joint venture in Japan, recorded a profit...

  • Page 66
    ... to Note 24 of Notes to Consolidated Financial Statements. Business Segment Information (Yen in billions) Year ended March 31 Percent change Sales and operating revenue Electronics ...Game ...Music ...Pictures ...Financial Services ...Other ...Elimination ...Consolidated ... 2003 2004 Net income...

  • Page 67
    ...Europe, sales of digital still cameras, flat panel televisions, cellular phones, and PCs increased significantly. Sales of CRT televisions, portable audio, Aiwa products, and home audio, however, decreased. In Other Areas, sales of CD-R/RW and DVD+/-R/RW drives, digital still cameras, PCs, and video...

  • Page 68
    ... year. Manufacturing by Geographic Area Approximately 50 percent of the Electronics segment's total annual production took place in Japan, including the production of digital still cameras, video cameras, flat panel televisions, PCs, semiconductors and components such as batteries and Memory Sticks...

  • Page 69
    ... continued to expand, hardware sales declined due to a strategic price reduction of PlayStation 2 hardware. Software unit sales and software sales in Europe both increased. Total worldwide production shipments of hardware and software were as follows: MUSIC Sales for the fiscal year ended March 31...

  • Page 70
    ... extension of a licensing agreement for Wheel of Fortune. This increase in sales was partially offset by lower theatrical and home entertainment revenues from the fiscal year release slate, which included such notable titles as Bad Boys II, S.W.A.T., Anger Management and Something's Gotta Give, when...

  • Page 71
    ... change in revenue recognition method did not have a material ef200 and an increase in expenses associated with the start, in earnest, of a credit card business. Sony Bank Inc. ("Sony Bank"), which started business in June 2001, recorded a loss, as was also the case in the previous fiscal year, but...

  • Page 72
    ... mainly of an in-house oriented information system service business, an advertising agency business in Japan and Sony Communication Network Corporation ("SCN"), an Internet-related service business subsidiary operating mainly in Japan. Sales for the fiscal year ended March 31, 2004 increased by 24...

  • Page 73
    ... year ended March 31, 2003. Current assets on March 31, 2004 in the Financial Services segment increased by 14.8 billion yen, or 2.2 percent, to 699.7 billion yen, compared with the previous fiscal year-end. The increase was primarily attributable to an increase in marketable securities. INVESTMENTS...

  • Page 74
    ... in pension assets due to the rise in value of equity investment in Japan. Long-term debt on March 31, 2004 in all segments excluding the Financial Services segment decreased 27.7 billion yen, or 3.4 percent, to 775.2 billion yen. This was mainly due to the shift to current liabilities of 287...

  • Page 75
    ..., due to an increase in pension assets resulting from the rise in value of equity investment in Japan, and unrealized gains on securities increased 52.3 billion yen compared with the previous fiscal year-end. The ratio of stockholders' equity to total assets decreased 1.0 percentage points from 27...

  • Page 76
    ... Liabilities and stockholders' equity Current liabilities ...Short-term borrowings ...Notes and accounts payable, trade ...Deposits from customers in the banking business ...Other ...Long-term liabilities ...Long-term debt ...Accrued pension and severance costs ...Future insurance policy benefits...

  • Page 77
    ...long-term returns by investing assets in an efficient manner and responding flexibly to changes in financial conditions and the investment environment. Moreover, Sony Life analyzes the character of future insurance policy benefits by utilizing Asset Liability Management ("ALM"), a method of managing...

  • Page 78
    ... securities, the financial structure of Sony Life is not greatly influenced by stock prices. Sony Bank operates using a similar basic investment policy as Sony Life, taking expected returns and investment risks into account in order to disperse associated risks, and structuring its asset portfolio...

  • Page 79
    ..., trade was primarily due to an increase in sales to outside customers, in the fourth quarter ended March 31, 2004, of digital still cameras, flat panel televisions and cellular phones (sold to Sony Ericsson) in the Electronics segment, as well as home entertainment revenues in the Pictures segment...

  • Page 80
    ... Technologies Corporation ("InterTrust") and an increase in the capital stock of Sony Ericsson in the fiscal year ended March 31, 2003. On the other hand, the amount of proceeds from sales and maturities of investments and collections of advances in the segments other than Financial Services segment...

  • Page 81
    ... U.K., and Sony Capital Corporation ("SCC"), a Sony finance subsidiary in the U.S., procure funds from the financial and capital markets. In order to meet long-term funding requirements, Sony Corporation utilizes its access to global equity and bond markets. In December 2003, Sony Corporation issued...

  • Page 82
    ... corporate value creation management, Sony uses EVA , which reflects cost of capital, as one of its internal evaluation measures. The fiscal year ended March 31, 2004 marked the fourth year Sony has used EVA . EVA is used in the Electronics, Game, Music, and Pictures segments for various internal...

  • Page 83
    ... total annual cash dividend per share of Common Stock is 25.0 yen. Regarding shares of subsidiary tracking stock issued in Japan by Sony Corporation, Sony Communication Network Corporation ("SCN") has been working to manage its operations so as to expand cash flow, fully solidify its financial base...

  • Page 84
    ... used in the next generation computer entertainment system. Furthermore, Sony is working to develop a new market through its planned introduction, in the fiscal year ending March 31, 2005, of PlayStation Portable ("PSP"), a new handheld game system on which a variety of content can be enjoyed. MUSIC...

  • Page 85
    .... As a result of this settlement, Sony expects to record approximately 100 million U.S. dollars in equity in net income of InterTrust during the fiscal year. ELECTRONICS Sales of products such as digital still cameras, flat panel televisions and DVD recorders are expected to continue to increase...

  • Page 86
    ... the Electronics and Game segments are expected to increase. RESEARCH AND DEVELOPMENT Sony expects research and development costs (total of expenses for the development of new product prototypes and expenses for the development of mid- to long-term new technologies) for the fiscal year ending March...

  • Page 87
    ...of long-lived assets in Music segment including a certain CD manufacturing facility to be abandoned or sold and a recording studio and equipment to be held and used in Japan. Fair value of these assets is determined using estimated future discounted cash flows which are based on the best information...

  • Page 88
    ... current market interest rate conditions. For Japanese plans, a 50 basis point increase in the discount rate would decrease pension costs by approximately 12.0 billion yen, compared to the year ended March 31, 2004. To determine the expected long-term rate of return on pension plan assets, Sony...

  • Page 89
    ... only the timing of film cost amortization. FUTURE INSURANCE POLICY BENEFITS Long-term liabilities for future policy benefits are established in amounts adequate to meet the estimated future obligations of policies in force. These liabilities are computed by the net level premium method based upon...

  • Page 90
    ... involve the delivery or performance of multiple products, services and/or rights to use assets. Sony adopted EITF Issue No. 00-21 on July 1, 2003. The adoption of EITF Issue No. 00-21 did not have a material impact on Sony's results of operations and financial position for the year ended March 31...

  • Page 91
    ... Research and development expenses ...394,479 416,708 AT YEAR-END Net working capital ...¥ 861,674 ¥ 830,734 Stockholders' equity ...2,182,906 2,315,453 Stockholders' equity per share attributable to common stock ...¥ 2,409.36 ¥ 2,521.19 Total assets ...¥6,807,197 ¥7,827,966 Number of shares...

  • Page 92
    ... have a material impact on Sony's results of operations and financial position for the year ended March 31, 2004. 5. In May 2003, the FASB issued Statement of FAS No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity". Sony adopted FAS No. 150 on...

  • Page 93
    Quarterly Financial and Stock Information Sony Corporation and Consolidated Subsidiaries - Year ended March 31 (Unaudited) 1st Quarter 2003 2004 Yen in billions except per share amounts 2nd Quarter 3rd Quarter 2003 2004 2003 2004 4th Quarter 2003 2004 Sales and operating revenue ...Â¥1,721.8 ...

  • Page 94
    ... Information Sony Corporation and Consolidated Subsidiaries - Year ended March 31 Sales and Operating Revenue by Business Segment Yen in millions Year ended March 31 2003 Dollars in millions* Year ended March 31 2004 2002 2004 Electronics- Customers ...Intersegment ...Total ...Game- Customers...

  • Page 95
    ...revenue and operating income (loss) in Sony's business segment information. The Electronics segment is managed as a single operating segment by Sony's management. However, Sony believes that the information in this table is useful to investors in understanding the product categories in this business...

  • Page 96
    ...ended March 31 2004 2002 2004 Depreciation and amortization: Electronics ...Game ...Music ...Pictures ...Financial Services, including deferred insurance acquisition costs ...Other ...Total ...Corporate ...Consolidated total ...Capital expenditures for segment assets: Electronics ...Game ...Music...

  • Page 97
    ... Yen in millions March 31 2003 Dollars in millions* March 31 2004 2002 2004 Total assets: Electronics ...Game ...Music ...Pictures ...Financial Services ...Other ...Total ...Elimination ...Corporate assets ...Consolidated total ...Â¥3,089,791 722,021 675,186 960,266 2,482,536 315,984 8,245,784...

  • Page 98
    ... 2004 Dollars in millions (Note 3) 2004 ASSETS Current assets: Cash and cash equivalents ...Time deposits ...Marketable securities (Notes 7 and 11) ...Notes and accounts receivable, trade (Note 6) ...Allowance for doubtful accounts and sales returns ...Inventories (Note 4) ...Deferred income taxes...

  • Page 99
    ... 20) ...Future insurance policy benefits and other (Note 10) ...Other ...807,439 496,174 159,079 1,914,410 255,478 3,632,580 Minority interest in consolidated subsidiaries ...Stockholders' equity (Note 15): Subsidiary tracking stock, no par value- Authorized 100,000,000 shares, outstanding 3,072,000...

  • Page 100
    Consolidated Statements of Income Sony Corporation and Consolidated Subsidiaries - Year ended March 31 2002 Yen in millions 2003 2004 Dollars in millions (Note 3) 2004 Sales and operating revenue: Net sales (Note 6) ...Financial service revenue ...Other operating revenue ... ¥7,058,755 480,190...

  • Page 101
    ... Dollars (Note 3) 2004 Per share data (Note 21): Common stock Income before cumulative effect of accounting changes -Basic ...-Diluted ...Cumulative effect of accounting changes -Basic ...-Diluted ...Net income -Basic ...-Diluted ...Cash dividends ...Subsidiary tracking stock (Note 15) Net income...

  • Page 102
    ... insurance policy benefits and other ...Increase in deferred insurance acquisition costs ...Increase in marketable securities held in the insurance business for trading purpose ...(Increase) decrease in other current assets ...Increase (decrease) in other current liabilities ...Other ...Net cash...

  • Page 103
    ... of marketable securities and collections of advances (other than financial service business) ...(Increase) decrease in time deposits ...Cash assumed upon acquisition by stock exchange offering ...Proceeds from the issuance of stock by subsidiaries (Note 19) ...Net cash used in investing activities...

  • Page 104
    Consolidated Statements of Changes in Stockholders' Equity Sony Corporation and Consolidated Subsidiaries - Year ended March 31 Yen in millions Subsidiary tracking stock Additional paid-in capital Accumulated other comprehensive income Treasury stock, at cost Common stock Retained earnings Total...

  • Page 105
    ... Common stock Retained earnings Total Balance at March 31, 2003 ...Conversion of convertible bonds ...Stock issued under exchange offering (Note 15) ...Comprehensive income: Net income ...Other comprehensive income, net of tax (Note 15)- Unrealized gains on securities: Unrealized holding gains...

  • Page 106
    ... Common stock Retained earnings Total Balance at March 31, 2003 ...Conversion of convertible bonds ...Stock issued under exchange offering (Note 15) ...Comprehensive income: Net income ...Other comprehensive income, net of tax (Note 15)- Unrealized gains on securities: Unrealized holding gains...

  • Page 107
    ...2003 Stock Price (¥) At year-end High Low Annual Increase/Decrease Number of Shares Outstanding at Year-end (thousands of shares) Market Capitalization at Year-end (trillion ¥) Per Share of Common Stock Data (¥) Cash Dividends Applicable to the Year Net Income (Diluted) Stockholders' Equity 14...

  • Page 108
    ...Corporation's U.S. subsidiary companies as an equity-based incentive plan. Although the conversion ratio is 0% for all these bonds, the value of bonds issued does not match the outstanding balance of bonds because Sony Corporation purchased and canceled a portion of these warrants that were not used...

  • Page 109
    ...SERVICES PLC. Investor Relations St. Helens, 1 Undershaft, London EC3A 8EE Phone: 44-(0)20-7444-9713 Facsimile: 44-(0)20-7444-9763 SONY ON THE INTERNET Sony's Investor Relations Home Pages on the World Wide Web offer a wealth of corporate information, including the latest annual report and financial...

  • Page 110