Sony 2007 Annual Report Download - page 60

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5757
A Message from the CFO
In the fiscal year ended March 31, 2007, Sony’s consolidated sales and operating revenue
increased approximately 10%, to a record high. Despite a substantial increase in operating income
in the Electronics segment due to brisk sales of digital cameras, LCD televisions and camcorders,
consolidated operating income decreased approximately 68%, owing primarily to an operating
loss in the Game segment as a consequence of losses associated with the launch of
PLAYSTATION®3 (PS3) and a reduction in operating income in the Financial Services segment,
owing to a decrease in valuation gains from convertible bonds. Nonetheless, net income increased
approximately 2%, reflecting an increase in equity in net income from equity affiliate Sony Ericsson
Mobile Communications AB, attributable to significant contributions from such hit products as
Cyber-shot- and Walkman®-branded mobile phones.
The fiscal year ending March 31, 2008, the final year in Sony’s bid to achieve its target of a 5%
consolidated operating income margin, is of tremendous importance to Sony. In addition to focusing
on achieving continued improvements in operating income in the Electronics segment, expanding
the PS3 platform and improving profitability in the Game segment, as well as enhancing our overall
cash flow and financial position, Sony will make concerted efforts to strengthen and promote
cooperation among its core Electronics, Game and Entertainment businesses, enabling it to shift
from “revitalization” to “profitable growth.”
Nobuyuki Oneda
Corporate Executive Officer, Executive Vice President and CFO