Sony 2006 Annual Report Download - page 2

Contents
Financial Highlights 1
To Our Shareholders: A Message from Howard Stringer, CEO 2
New Management’s Mid-Term Corporate Strategy 5
The Revitalization of Electronics: An Interview with Ryoji Chubachi, Electronics CEO 9
Feature Story
HD World: The World of High Definition, Created by Sony 14
BRAVIA: High-Resolution, Slim-Profile LCD Televisions for the Flat Panel Era 16
Business Overview 18
Review of Operations
Electronics 20
Game 28
Entertainment 32
Financial Services 37
All Other 39
Research and Development 40
Corporate Governance/New Directors and
Corporate Executive Officers 42
Corporate Social Responsibility 44
Financial Section 47
Stock Information 140
Stock Acquisition Rights and Bond Information 141
Investor Information 142
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, financial 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 currently
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 therefore 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 consumer 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 denominated;
(iii) Sony’s ability to continue to design and develop and win acceptance of,
as well as achieve sufficient cost reductions for, its products and services,
which are offered in highly competitive markets characterized by continual
new product introductions, rapid development in technology and subjective
and changing consumer preferences (particularly in the Electronics, Game
and Pictures segments, and music business); (iv) Sony’s ability to recoup
large-scale investment required for technology development, increasing
production capacity and by the Game segment for the development and
introduction of a new platform; (v) Sony’s ability to implement successfully
personnel reduction and other business reorganization activities in its
Electronics segment; (vi) Sony’s ability to implement successfully its network
strategy for its Electronics, Game and Pictures segments, All Other and
the music business, and to develop and implement successful sales and
distribution strategies in its Pictures segment and music business in light of
the Internet and other technological developments; (vii) 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); (viii) shifts in customer demand for
financial services such as life insurance and Sony’s ability to conduct
successful Asset Liability Management in the Financial Services segment;
and (ix) the success of Sony’s joint ventures and alliances. Risks and
uncertainties also include the impact of any future events with material
unforeseen impacts.
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ULTRAVIOLET
© 2006 Screen Gems, Inc. All Rights Reserved.