Sony 2008 Annual Report Download

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Annual Report 2008
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Table of contents

  • Page 1
    Annual Report 2008

  • Page 2
    Contents Financial Highlights Business Overview Letter to Shareholders Mid-Term Corporate Strategy Review of Operations Special Features OLED Television FIFA Partnership Program Blu-ray Disc 1 2 4 8 14 16 22 36 Corporate Governance/New Directors and Corporate Executive Officers Corporate Social ...

  • Page 3
    Financial Highlights Sales and operating revenue Operating income ¥8,871.4 billion + 6.9% (Yen in trillions) ¥374.5 billion 5.2 times (Yen in billions) Rose 6.9%, owing to increased sales in the Electronics and Game businesses, achieving a fiscal-year record More than five times the ...

  • Page 4
    ...* by business segment and Electronics sales by product category Audio (9%) 3.5% 6.2% Electronics Game Pictures Financial Services All Other Proportion of sales* by region Video (22%) Japan U.S.A. Europe Other 9.7% 25.5% 23.2% 13.7% 2008 66.9% Televisions (23%) Information and Communications...

  • Page 5
    ...in sales at Sony Music Entertainment (Japan), Inc., and higher fee revenue from broadband connection services, particularly 382.2 13.1% fiber-optic, at So-net Entertainment Corporation. Operating income climbed 73.9%. 4.8% 18.8 2006 *Years ended March 31 8.1% Operating income increased mainly...

  • Page 6
    ... many of our businesses. Notably, Sony Group worked together to successfully make Blu-ray Disc™ the de facto standard for high definition recording and playback. To date, more than 15 million Blu-ray Disc players, recorders and Blu-ray Disc-enabled PLAYSTATION®3 (PS3™) systems have been sold...

  • Page 7
    ...the portfolio in the life insurance businesses, caused by the significant decline in the Japanese stock market, negatively impacted segment results.* Finally, our key joint ventures, including Sony Ericsson Mobile Communications AB and SONY BMG MUSIC ENTERTAINMENT- contributed significantly to net...

  • Page 8
    ... in developing markets and emerging economies such as Brazil, Russia, India and China (the BRIC countries), with the specific goal of doubling revenues in the BRIC countries by fiscal year 2010. Additionally, we have targeted a consolidated annual return on equity of 10% by the end of fiscal...

  • Page 9
    ... Sony Corporation after obtaining his Ph.D. in Resource Engineering in 1977. He was involved in developing recording media, and in 1989 was transferred to Sony Magnetic Products Inc. of America. Upon returning to Japan in 1992, he was placed in charge of the recording media business, including...

  • Page 10
    Sony Group Corporate Strategy "To be the leading global provider of networked consumer electronics and entertainment" Following the formation of Sony's management team, led by Chairman and CEO Howard Stringer and President and Electronics CEO Ryoji Chubachi, Sony conducted an extensive business ...

  • Page 11
    ... of digital SLR cameras • Executed our "Asset Light" strategy for semiconductors, specifically the sale of certain production equipment while maintaining semiconductor design functions • Sony Ericsson Mobile Communications AB (Sony Ericsson) increased its market share and brand image through...

  • Page 12
    ... television and digital imaging businesses, as well as the mobile phones business of Sony Ericsson. In addition to these three Electronics categories, our Game segment has already passed the trillion yen milestone. Furthermore, by fiscal year 2010, we plan to grow our VAIO PCs, Blu-ray Disc-related...

  • Page 13
    ...leading global provider of networked consumer electronics and entertainment" • Expand our PC, Blu-ray Disc-related products and component/semiconductor businesses into "trillion yen businesses,2" joining LCD TVs, digital imaging, game and mobile phones and raising the total number of "trillion yen...

  • Page 14
    ...entertainment and network services (e.g. Gracenote, 2waytraffic) • Expand and reinforce TV Business -LCD panel production expansion -Increase OLED panel production • Invest aggressively into Core components -Image Sensor, Li-ion Battery and Blu-ray Disc, etc • Implement "Asset Light" strategy...

  • Page 15
    ... then to key mobile products such as Walkman® and Sony Ericsson phones. This initiative is expected to generate new revenue streams and is one of the clearest opportunities for Sony to leverage its entertainment assets to differentiate our electronic products. Financial Strategies We have targeted...

  • Page 16
    ... the "HD World." This concept represents the integration of Sony products-from electronics to motion pictures, games and other entertainment content-enabling users to view, shoot, edit and enjoy images with the same dazzling high definition (HD) quality. Collaboration among Sony Group companies...

  • Page 17
    ... our mobile product development. In February 2008, we announced plans to invest approximately ¥22 billion to establish production technologies for medium-sized and large OLED panels. Although LCD televisions remain the mainstay of our television business, we have positioned the OLED panel as a new...

  • Page 18
    ... on the LCD television business, which is expected to experience continued growth. With the market for LCD televisions expanding rapidly, ensuring a stable supply of LCD panels is becoming increasingly New Technology: The World's First OLED Television Extraordinary image quality, Extra Ex elegant...

  • Page 19
    ... of larger panels. Ken Kikuchi Engineer, E Products & Business Development Dept, TV Business Group, Sony Corporation Ken Kikuchi has been involved in Sony's OLED project since its inauguration in the summer of 2006. In his capacity as an engineer in charge of panels for televisions, Ken brought...

  • Page 20
    ...-edge HD equipment especially for the production of HD programming that addresses the needs of professional users. Sony HD cameras and videotape recorders have already been adopted by broadcasters around the world and are being used to generate an unprecedented array of high-quality HD content...

  • Page 21
    ...steps to bolster our lineup of Blu-ray Disc-compatible models. In the fiscal year ended March 31, 2008, our PCs-notably 10.0 Camcorder sales and market share (Millions of units) (%) 80 7.6 7.5 7.7 60 41% 43% 40 7.5 42% 5.0 VAIO PCs play a crucial role in the "HD World" by enabling users to edit...

  • Page 22
    .... These products are supported by Sony's image sensor technologies. We have consistently led the industry by developing format standards ranging from 8mm video to digital video (DV) and high definition video (HDV), and by commercializing Handycam® camcorders that deliver improved image quality and...

  • Page 23
    ... compact digital cameras showed a dramatic growth of 27% in the fiscal year ended March 31, 2008. This was due to replacement demand and continued, robust new demand in emerging markets. For these and other markets, Sony has Recently, we launched models equipped with newly developed functions such...

  • Page 24
    ... quality delivered by Sony camcorders, compact digital cameras business. We are also working to strengthen our technological capabilities for CMOS Global Branding: Sony FIFA An initiative to strengthen the Sony brand through a partnership with FIFA Sony has signed a global partnership program...

  • Page 25
    ... the public and promoting information sharing within the Sony Group. Why become a FIFA partner? Our principal objective is to enhance the brand value of the Sony Group worldwide. The FIFA partnership encompasses Sony's core business categories, including electronics, games, mobile phones, music and...

  • Page 26
    ...to develop products which are unique to Sony. Recent TransferJet TransferJet™ is a close proximity wireless transfer technology that facilitates the high-speed transfer of photographs, videos and other large files from a cellular phone, digital camera or video camera to a PC or television simply...

  • Page 27
    ... supports product differentiation to technology that creates new markets, we continue to actively pursue R&D in a variety of fields. These activities range from the development of a thin, light and bendable OLED display made with plastic film to TransferJet, a new close proximity wireless transfer...

  • Page 28
    ... the digital signal processing of the entire audio chain, 2 3 from sound input through to speaker output, generating highly efficient, high-fidelity 0 2006 2007 2008 0 sound. Incorporated into products ranging from home theater systems to golf ball-sized speakers, S-Master technology brings...

  • Page 29
    ... year ended March 31, 2008, total unit sales of digital music players increased 29%, to 5.8 million units. In the Japanese market, we also kicked off the 'auÃ-Sony "MUSIC PROJECT,"' in collaboration with KDDI Corporation. This new service allows subscribers to download music to their mobile phones...

  • Page 30
    Artists from SONY BMG & SMEJ Alicia Keys Bruce Springsteen Leona Lewis Chris Brown Avril Lavigne Celine Dion YUI Ken Hirai L'Arc-en-Ciel 28

  • Page 31
    ...website MySpace and formed MySpace Music with other major music companies-a joint venture that aims to serve as an interactive online platform for music sales, subscription services and ad-supported entertainment. SONY BMG also participated in "Comes With Music," a concept which offers mobile phones...

  • Page 32
    .... Sony will strive to further develop its IPTV service business by emphasizing the unique advantages of both its hardware and content. Already popular for downloading music, films and other content, online services are also rapidly becoming a major part of the gaming market. PLAYSTATION Network...

  • Page 33
    ... its long-standing contribution to profits in Sony's Game business. SCE will continue to promote PS2 in emerging markets, such as those in Eastern Europe, the Middle East and Asia, as well as by expanding the PS2 software lineup. conductors, and advanced devices such as the Blu-ray Disc...

  • Page 34
    ...* *Some titles are yet to be released. Gran Turismo 5 Prologue™ SOCOM™: Confrontation LittleBigPlanet™ SingStar® AFRIKA™ AQUANAUT'S HOLIDAY (working title) PSP® (PlayStation®Portable) software titles* *Some titles are yet to be released. Secret Agent Clank™ Hot Shots Golf...

  • Page 35
    ...13.7 2007, SCE acquired two U.K.-based software developers that are regarded highly worldwide. In addition, SCE added to its group Sony Online Entertainment (SOE), a U.S. online game development and services company previously part of 0 2006 PS3™ PSP® 2007 PS2 2008 *Years ended March 31 of...

  • Page 36
    ... © Columbia Pictures Industries, Inc. © Columbia Pictures Industries, Inc. © Columbia Pictures Industries, Inc. Vantage Point Surf's Up The Water Horse: Legend of the Deep © Columbia Pictures Industries, Inc. © 2008 Sony Pictures Television Inc. © 2008 Jeopardy Productions Inc. 21...

  • Page 37
    ...and television programming to more than 100 countries. It is also a leader in the production and distribution of digital entertainment, from the creation of world-class visual effects for motion pictures to the development of content for the Internet, mobile phones and other devices. Middle East and...

  • Page 38
    ... Manager, BD Strategy Office, Sony Corporation Taking on the challenge of developing cutting-edge technology and cultivating new markets is part of Sony's DNA. Sony began Blu-ray development immediately after the launch of DVD. We enlisted the cooperation of leading companies in the AV, IT, game...

  • Page 39
    ... Blu-ray Disc Association partners is the latest example of a leading technology making a significant impact on our customers' entertainment experience. Blu-ray presents an enormous opportunity for Sony. Total sales* of Blu-ray-related products such as Blu-ray Disc players and recorders, VAIO PCs...

  • Page 40
    ... players and recorders, sales of which remain strong. Having positioned Blu-ray as a key technology in the HD era, Sony is expanding the scope of its businesses in related areas- from Blu-ray Disc players and recorders to PS3â„¢ and VAIO PCs equipped with Blu-ray Disc, software and disc production...

  • Page 41
    ...technological innovation. These trends continue to drive the rapid evolution of Sony's operating environment. Sony will continue to maximize the competitive advantage it enjoys in both hardware and content, by identifying user needs and responding with superior-quality products, outstanding services...

  • Page 42
    ... system, the Board of Directors defines the respective areas for which each of the Corporate Executive Officers is responsible and delegates to them decision-making authority to manage the business, thereby promoting the prompt and efficient management of the Sony Group. Governance Structure Sony...

  • Page 43
    ... of officers and senior management of the Sony Group who oversee investor relations, accounting, corporate planning, legal, corporate communications, finance, internal audit and human resources, supervises the preparation of Sony's annual reports, current reports, quarterly earnings releases and...

  • Page 44
    ... Technology Strategies, Intellectual Property, Information Systems and Electronics Business Strategies Executive Vice President and General Counsel Corporate Executives • Carry out business operations within designated areas, including business units, research and development, and/or headquarters...

  • Page 45
    ...Compliance Office establishes compliance policies and structures for the Sony Group and performs crisis management functions. In July 2003, Sony established a regional compliance network comprised of offices in the Americas, Europe, Japan,1 East Asia2 and Pan-Asia, which are charged with assisting...

  • Page 46
    ... reduction activities in partnering with business partners," and that we will "promote a low-carbon lifestyle to consumers and customers." As stated in the Declaration, member companies, including Sony, will continue communicating with consumers about conservation and specific energy-saving steps...

  • Page 47
    ... promote social responsibility and shared efficiencies in the electronics industry supply chain. As of June 2008, the EICC consisted of 42 members, including manufacturers, production contractors and retailers, from Europe, the United States, Asia and Japan. Sony established the Sony Supplier Code...

  • Page 48
    ... activities totaled approximately ¥4.5 billion.* In 2006, we launched the Sony Student Project Abroad (China) (SSPA). Under the program, Sony invites Chinese high school students to Japan, where they stay with the families of Sony employees, take part in Sony technology workshops with Japanese high...

  • Page 49
    ...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 48 49 88 89 90 92 94 96 98 For the notes to Sony's consolidated...

  • Page 50
    ... year ended March 31, 2009. We also plan to distribute a special dividend of ¥10 per share, to be paid in December 2008. This is in recognition of the successful initial public offering of shares in Sony Financial Holdings on the Tokyo Stock Exchange, and of Sony's record consolidated net income...

  • Page 51
    ...to the consumer. In addition, it is taking steps to increase its competitive edge by developing high value-added semiconductors and other key digital devices in-house. Sony considers improving the profitability of the television business, which recorded a loss in the fiscal year ended March 31, 2008...

  • Page 52
    ... and new home entertainment formats, such as Blu-ray, and other emerging platforms, including digital download. â- FINANCIAL OPERATING RESULTS Operating Results for the Fiscal Year Ended March 31, 2008 compared with the Fiscal Year Ended March 31, 2007 OVERVIEW Sony's sales and operating revenue...

  • Page 53
    ...loss on equity securities in the general account of Sony Life reflecting a significant decline in the Japanese stock market. Operating income in the fiscal year ended March 31, 2008 included one-time gains primarily from a gain on the sale of a portion of the site of Sony's former headquarters of 60...

  • Page 54
    ... in the cost of sales ratio for several products, in particular PCs, compact digital cameras and video cameras. The cost of sales ratio in the Game segment improved primarily as a result of PS3 hardware cost reductions and increased sales of PS3 software. In the Pictures segment, the cost of...

  • Page 55
    ... on sale, disposal or impairment of assets, net recorded in the previous fiscal year. The gain recorded in the fiscal year ended March 31, 2008 is primarily from a gain on the sale of a portion of the site of Sony's former headquarters of 60.7 billion yen and gain on the sale of "The Sony Center am...

  • Page 56
    ... income of affiliated companies reported for Sony Ericsson Mobile Communications AB ("Sony Ericsson") was 79.5 billion yen, a decrease of 5.8 billion yen compared to the previous fiscal year, due to higher research and development expenses as a percentage of sales. Sony recorded equity in net income...

  • Page 57
    ...while sales of products such as LCD televisions, compact digital cameras and PCs increased. In Europe, sales of products such as LCD televisions and PCs increased while sales of mobile phones produced for wireless customers decreased. In Other Areas, sales of LCD televisions, compact digital cameras...

  • Page 58
    ..., Japan, including machinery and equipment. Regarding profit performance by product, profitability of products such as LCD televisions worsened due to unit selling price declines while profit increased mainly for PCs and compact digital cameras, which experienced higher sales, for system large-scale...

  • Page 59
    ... Area Approximately 50 percent of the Electronics segment's total annual production during the fiscal year ended March 31, 2008 took place in Japan, including the production of compact digital cameras, video cameras, LCD televisions, PCs, semiconductors and components such as batteries and Memory...

  • Page 60
    ...which the product is made available for broadcast. Sales and operating income in the Pictures segment (Yen in billions) 1,000 (Yen in billions) 100 â- FINANCIAL 750 6.3% 4.4% 3.7% 75 500 50 250 25 SERVICES Note that the revenue and operating income at Sony Life, Sony Assurance and Sony Bank...

  • Page 61
    ...; Sony Music Entertainment Inc.'s music publishing business; So-net Entertainment Corporation ("So-net"), an Internet-related service business subsidiary operating mainly in Japan; and an advertising agency business in Japan. Trademark royalty income from Sony Ericsson is also included in sales and...

  • Page 62
    ...approximately 4 percent, compared with the previous fiscal year, mainly due to an increase in animation DVD sales as well as the abovementioned increase in music download sales. Part of the gain on the sale of a portion of Sony's former headquarters site in the amount of 2.6 billion yen was included...

  • Page 63
    ... fiscal year-end. This was primarily due to the recording of a receivable within the Electronics segment relating to the sale of a portion of Sony's semiconductor operations in Nagasaki, Japan, including machinery and equipment. Current assets as of March 31, 2008 in the Financial Services segment...

  • Page 64
    ... to investments mainly in Japanese fixed income securities by Sony Life, which increased assets as a result of an expansion of its business, and an increase in mortgage loans outstanding at Sony Bank. PLANT AND EQUIPMENT (AFTER DEDUCTION OF ACCUMULATED DEPRECIATION) Property, plant and equipment as...

  • Page 65
    ... from long-term to current liabilities of the 250 billion yen tranche of bonds with stock acquisition rights which will come due during the fiscal year ending March 31, 2009. Notes and accounts payable, trade as of March 31, 2008 in all segments, excluding the Financial Services segment, decreased...

  • Page 66
    ... Sony without Financial Services 2007 2008 Consolidated 2007 2008 Assets Current assets ...Cash and cash equivalents ...Marketable securities ...Notes and accounts receivable, trade ...Other ...Film costs ...Investments and advances ...Investments in Financial Services, at cost ...Property...

  • Page 67
    ... out the unrealized gains and losses by investment category. Yen in millions March 31, 2008 Cost Unrealized gain Unrealized loss Fair market value Financial Services Business: Available for sale Debt securities Sony Life ...Other ...Equity securities Sony Life ...Other ...Held to maturity Debt...

  • Page 68
    ...investments of the Financial Services segment, respectively. Sony Life's fundamental policy in managing the investments of its general account assets is to maintain the soundness of its assets and build an investment portfolio capable of ensuring stable mid- to long-term returns, taking into account...

  • Page 69
    ...11) ...Other long-term debt (Note 11)...Minimum rental payments required under operating leases (Note 8) ...Purchase commitments for property, plant and equipment and other assets (Note 23) ...Expected cost for the production or purchase of films and television programming or certain rights (Note 23...

  • Page 70
    .... Through these programs, Sony can sell receivables to qualified special purpose entities owned and operated by banks. These transactions are accounted for as a sale in accordance with Financial Accounting Standards ("FAS") No. 140, "Accounting for Transfers and Servicing of Financial Assets and...

  • Page 71
    ... the site of Sony's former headquarters. Within the Financial Services segment, payments for investments and advances, carried out primarily at Sony Life, and at Sony Bank where operations are expanding, exceeded proceeds from the maturities of marketable securities, sales of securities investments...

  • Page 72
    ... AND CAPITAL RESOURCES (The description below covers financial basic policy and figures for Sony's consolidated operations except for the Financial Services segment and So-net, which secure liquidity on their own. Furthermore, the Financial Services segment is described separately at the end of...

  • Page 73
    ... on capital transfers due mainly to country regulations) and the unused amount of committed lines of credit. Sony's basic liquidity management policy is to secure sufficient liquidity throughout the relevant fiscal year, covering such factors as 50 percent of monthly consolidated sales and...

  • Page 74
    ...product prototypes while the remaining 35 percent were for the development of mid- to long-term new technologies in such areas as semiconductors, communications and displays. In the Game segment, research and development costs decreased mainly due to the decline in costs related to PS3. Consolidated...

  • Page 75
    ... customer demand, Sony must successfully manage frequent product and service introductions and transitions. Due to the highly volatile and competitive nature of the PC, consumer electronics and mobile communication industries, Sony must continually introduce new products, services and technologies...

  • Page 76
    ... carrying value of the related assets may be subject to an impairment charge, which could adversely affect Sony's mid-term profitability. (Refer to "Electronics" section of "Trend Information.") Sony's utilization of joint ventures and alliances within strategic business areas may not be successful...

  • Page 77
    ... revenue to total revenue. Volatile mid- to long-term changes in exchange rate levels may interfere with Sony's global allocation of resources and hinder Sony's ability to engage in research and development, procurement, production, logistics, and sales activities in a manner that is profitable...

  • Page 78
    ... large-scale investment relating to capital expenditures and research and development for the manufacture of key components, including semiconductors supplied for PS3, was also recorded within the Electronics segment. Moreover, it is particularly important in the Game segment that these products are...

  • Page 79
    ...'s profitability and long-term ability to meet policy commitments could be materially and adversely affected. The investment portfolio within Sony's Financial Services segment exposes Sony to a number of additional risks other than the risks related to declines in the value of equity securities and...

  • Page 80
    ... hard disk drive video and audio recorders, CD, DVD, and Blu-ray Discâ„¢ recorders and peer-to-peer digital distribution services. Such unauthorized distribution has adversely affected sales and operating income within the music business, and returns from Sony's investment in SONY BMG, and threatens...

  • Page 81
    ... than in other parts of the world. In addition, Sony's offices and facilities, including those used for research and development, material procurement, manufacturing, motion picture and television program production, logistics, sales and services are located throughout the world and are subject...

  • Page 82
    ... components (including LCD panels for televisions), and technologies (such as operating systems for PCs). Sony has also become more reliant upon the services of third-party original equipment and design manufacturers in the Electronics and Game segments. In addition, Sony consigns to external...

  • Page 83
    ... could possibly lead to an increase in additional costs due to new regulations including carbon taxes and governmental policies regarding energy efficiency for electronics products. A new regulation regarding logistics has already been introduced in Japan and other countries may introduce similar...

  • Page 84
    ...declines in value of worldwide equity markets and the effect of worldwide interest rate fluctuations. As a result, unrealized losses recorded for investments may be recognized and reduce income in future periods. â- VALUATION Sony's investments are comprised of debt and equity securities accounted...

  • Page 85
    ... totaling 16,762 million yen, which included 3,572 million yen for the impairment of long-lived assets of CRT TV display manufacturing facilities to be held and used in the U.S., East Asia and Southeast Asia in connection with certain restructuring activities in the Electronics segment. Fair value...

  • Page 86
    ... the expected long-term rate of return on pension plan assets. The net actuarial loss reflects the overall unfavorable return on investment over the past several years and will result in an increase in pension costs as they are recognized. Sony adopted FAS No. 158 in the financial statements for the...

  • Page 87
    ... may affect Sony's future insurance policy benefits. IN NET INCOME OF AFFILIATED COMPANIES Sony periodically reviews the presentation of its financial information to ensure that it is consistent with the way management views the consolidated operations. Since Sony considers its equity investments to...

  • Page 88
    ... costs on internal replacements of insurance and investment contracts other than those specifically described in FAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sales of Investments." Sony adopted SOP 05...

  • Page 89
    ... contracts. FAS No. 163 will be effective for Sony as of April 1, 2009, except for disclosures about the insurance enterprise's risk-management activities. Disclosures about the insurance enterprise's risk-management activities will be effective the first period beginning after issuance of FAS...

  • Page 90
    ...Capital expenditures (additions to property, plant and equipment) ...Research and development expenses ...AT YEAR-END Net working capital...Stockholders' equity...Stockholders' equity per share attributable to common stock ...Total assets ...Number of shares issued at year-end (thousands of shares...

  • Page 91
    ... companies ...Net income (loss) ...Per share data of common stock Net income (loss) -Basic ...-Diluted ...Depreciation and amortization* ...Capital expenditures (additions to fixed assets) ...R&D expenses ...Tokyo Stock Exchange price per share of common stock: High ...Low ...New York Stock Exchange...

  • Page 92
    ... of sales and operating revenue to outside customers. OPERATING INCOME (LOSS) BY BUSINESS SEGMENT* Yen in millions Years ended March 31 2006 2007 2008 Electronics ...Game ...Pictures ...Financial Services ...All Other ...Total ...Corporate and elimination ...Consolidated total ... ¥ 8,820...

  • Page 93
    ...of Electronics sales and operating revenue to external customers by product category. The Electronics segment is managed as a single operating segment by Sony's management. Effective for the fiscal year ended March 31, 2007, Sony has partly changed its product category configuration. The main change...

  • Page 94
    Consolidated Balance Sheets Sony Corporation and Consolidated Subsidiaries-As of March 31 Yen in millions 2007 2008 ASSETS Current assets: Cash and cash equivalents...Marketable securities ...Notes and accounts receivable, trade...Allowance for doubtful accounts and sales returns ...Inventories ...

  • Page 95
    ...Long-term debt ...Accrued pension and severance costs ...Deferred income taxes ...Future insurance policy benefits and other ...Other ...Total long-term liabilities ...Total liabilities ...Minority interest in consolidated subsidiaries ...Stockholders' equity: Common stock, no par value- 2007-Shares...

  • Page 96
    ... Income Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions 2006 2007 2008 Sales and operating revenue: Net sales ...Financial service revenue ...Other operating revenue ...Costs and expenses: Cost of sales ...Selling, general and administrative ...Financial service...

  • Page 97
    Yen 2006 2007 2008 Per share data: Common stock Net income -Basic ...-Diluted ...Cash dividends ... 122.58 116.88 25.00 126.15 120.29 25.00 368.33 351.10 25.00 95

  • Page 98
    ... accounts payable, trade ...Increase (decrease) in accrued income and other taxes ...Increase in future insurance policy benefits and other ...Increase in deferred insurance acquisition costs ...(Increase) decrease in marketable securities held in the financial service business for trading purpose...

  • Page 99
    ..., sales of securities investments and collections of advances (other than financial service business) ...Proceeds from sales of subsidiaries' and equity investees' stocks...Other ...Net cash used in investing activities...Cash ï¬,ows from financing activities: Proceeds from issuance of long-term...

  • Page 100
    ... of Changes in Stockholders' Equity Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions Subsidiary tracking stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock, at cost Total Balance at March 31...

  • Page 101
    ... millions Subsidiary tracking stock Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock, at cost Total Balance at March 31, 2007 ...Exercise of stock acquisition rights ...Conversion of convertible bonds ...Stock-based compensation...

  • Page 102
    ...of daily closing prices for each day of every month at the Tokyo Stock Exchange. Years ended March 31 2004 2005 2006 2007 2008 Stock price (Yen) At year-end ...High ...Low ...Annual increase/decrease ...Number of shares outstanding at year-end (Thousands of shares) ...Market capitalization at...

  • Page 103
    ... Bond Information As of March 31, 2008 STOCK ACQUISITION RIGHTS (SARs) Name Date of issue (Exercise period) Total number of SARs issued Number of shares to be issued or transferred Exercise price Percentage of SARs exercised (%) The first series of common stock acquisition rights The third series...

  • Page 104
    ...: 1-514-285-3600 TRANSFER AGENT Mitsubishi UFJ Trust and Banking Corporation Corporate Agency Department 10-11, Higashisuna 7-chome, Koto-ku, Tokyo 137-8081, Japan Phone: 81-(0)3-3212-1211 OVERSEAS STOCK EXCHANGE LISTINGS New York and London stock exchanges JAPANESE STOCK EXCHANGE LISTINGS Tokyo and...

  • Page 105
    ...large-scale investments required for technology development and increasing production capacity; (v) Sony's ability to implement successfully business reorganization activities in its Electronics segment; (vi) Sony's ability to implement successfully its network strategy for its Electronics, Game and...

  • Page 106
    Annual Report 2008 Year Ended March 31, 2008 Sony Corporation Printed in Japan