Sony 2006 Annual Report Download - page 10

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8
Other
Other noteworthy growth initiatives include:
•Development of unique products by Sony Ericsson Mobile
Communications (e.g., Walkman® phones) that leverage Sony’s
electronics and entertainment assets;
•Continued strong performance from Sony Financial Holdings—
including Sony Life, Sony Assurance and Sony Bank—with its
initial public offering (IPO) being planned for the fiscal year ending
March 31, 2008, or thereafter;
•Enhancement of Sony’s position in the mobile entertainment
arena—by regaining a competitive position in portable audio and
assuming a leadership position in the burgeoning portable video
market; and
•Development of Cell-based technology, products and applications
through the establishment of the Cell Development Center.
Interim Progress Update
As of the year ended March 31, 2006, we are pleased to report we
accomplished the following aspects of our structural reform
initiatives:
•Established a new, streamlined organizational structure;
•Achieved ¥38.0 billion in cost reductions, including:
 • Nine manufacturing sites marked for closure or consolidation;
and
 • 5,700 person head-count reduction
•Achieved ¥78.0 billion in proceeds from non-strategic asset
sales (including the successful IPO of Sony Communication
Network and the sale of a portion of Sony’s interest in Monex
Beans Holdings); and
•Established a clear and concise tracking system for investors
(disclosed on a quarterly basis).
In addition, action plans have already been implemented for nine
of 15 selected business categories, including plasma televisions,
QUALIA™ products and entertainment robots.
For the year ended March 31, 2006, the Sony Group generated
a consolidated operating profit margin of 3.4 percent (before
restructuring and one-time charges), achieved in part through
the positive contribution from Electronics, primarily due to the
execution of our revitalization plan for the television business and
the success of our BRAVIA™ LCD televisions.
Conclusion
We believe our extensive plan, with a mix of restructuring and
growth initiatives, along with significant organizational changes,
addresses those issues deemed most critical to revitalizing Sony,
and we are intently focused on delivering upon the commitments
and targets of this plan. As of the year ended March 31, 2006, our
financial, operational, and structural commitments and targets are
on track with our original plan. Still, within this highly dynamic and
competitive environment, this revitalization plan does not end our
capacity for change; rather, it begins it.