Sony 2005 Annual Report Download - page 2

Contents
Cautionary Statement
Statements made in this annual report with respect to Sony’s current
plans, estimates, strategies and beliefs and other statements that are
not historical facts are forward-looking statements about the future
performance of Sony. Forward-looking statements include, but are
not limited to, those statements using words such as “believe”,
“expect”, “plans”, “strategy”, “prospects”, “forecast”, “estimate”,
“project”, “anticipate”, “aim”, “may” or “might” and words of similar
meaning in connection with a discussion of future operations, finan-
cial performance, events or conditions. From time to time, oral or
written forward-looking statements may also be included in other
materials released to the public. These statements are based on
management’s assumptions and beliefs in light of the information cur-
rently available to it. Sony cautions you that a number of important
risks and uncertainties could cause actual results to differ materially
from those discussed in the forward-looking statements, and there-
fore you should not place undue reliance on them. You also should
not rely on any obligation of Sony to update or revise any forward-
looking statements, whether as a result of new information, future
events or otherwise. Sony disclaims any such obligation. Risks and
uncertainties that might affect Sony include, but are not limited to (i)
the global economic environment in which Sony operates, as well as
the economic conditions in Sony’s markets, particularly levels of con-
sumer spending; (ii) exchange rates, particularly between the yen and
the U.S. dollar, the euro and other currencies in which Sony makes
significant sales or in which Sony’s assets and liabilities are denomi-
nated; (iii) Sony’s ability to continue to design and develop and win
acceptance of its products and services, which are offered in highly
competitive markets characterized by continual new product intro-
ductions, rapid development in technology and subjective and chang-
ing consumer preferences (particularly in the Electronics, Game,
Music, Pictures and Other segments); (iv) Sony’s ability to implement
successfully personnel reduction and other business reorganization
activities in its Electronics, Music, Pictures and Other segments;
(v) Sony’s ability to implement successfully its network strategy for its
Electronics, Music, Pictures and Other segments and to develop and
implement successful sales and distribution strategies in its Music,
Pictures and Other segments in light of the Internet and other techno-
logical developments; (vi) Sony’s continued ability to devote sufficient
resources to research and development and, with respect to capital
expenditures, to correctly prioritize investments (particularly in the
Electronics segment); (vii) shifts in customer demand for financial ser-
vices such as life insurance and failure to conduct successful Asset
Liability Management and (viii) the success of Sony’s joint ventures
and alliances. Risks and uncertainties also include the impact of any
future events with material unforeseen impacts.
Financial Highlights 1
Operating Performance Highlights 2
To Our Shareholders 4
Review of Operations 8
Electronics 8
Game 13
Entertainment 16
Financial Services 20
Other 22
R&D Strategies and Selection of
Key Technological Fields 23
The Sony Challenge: Seeing is Believing 26
Corporate Governance/New Directors
and Corporate Executive Officers 32
Corporate Social Responsibility 34
Financial Section 35
Stock Information 130
Stock Acquisition Rights and
Bond Information 131
Investor Information 132
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