Sony 2009 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    Cover page design concept: Represents the fusion of Sony's hardware, content and services into a united group positioned to advance to new heights.

  • Page 3
    ... to Shareholders Review of Operations Board of Directors and Corporate Executive Officers Financial Section Supplemental Information 2 4 6 16 33 34 46 For more information about Sony's financial information, corporate governance and CSR, please refer to the following websites. 2009 Annual Report...

  • Page 4
    ...including Sony Ericsson Mobile Communications AB (a mobile phone business joint venture), and a ¥53.8 billion deterioration in operating results in the Financial Services segment, mainly due to a significant decline in the Japanese stock market. Restructuring charges, recorded as operating expenses...

  • Page 5
    ...) (127.3) (227.8) 2007 2008 2009 2007 2008 2009 Operating income (loss) Operating income (loss), as adjusted, which excludes equity in net income (loss) of affiliated companies and restructuring charges Free cash ï¬,ow (excluding Financial Services) (Yen in billions) Capital expenditures (Yen in...

  • Page 6
    ...loss) for Sony Ericsson Mobile Communications AB. Operating income decreased significantly for such products as Cyber-shot compact digital cameras, VAIO PCs, BRAVIA LCD televisions and Handycam® video cameras. 6,072.4 6,613.8 5,488.0 251.3 2007 441.8 (168.1) 2008 2009 Game Sales Operating loss...

  • Page 7
    ...) The Pictures business centers on motion pictures and television programming distributed by Sony Pictures Entertainment (SPE). Sales and operating revenue in the Pictures business decreased 16.4% year on year, to ¥717.5 billion. Motion pictures revenues were down primarily due to lower home...

  • Page 8
    Letter to Shareholders: A Message from Howard Stringer, CEO

  • Page 9
    ... past fiscal year, we developed and launched some of the most technologically innovative and unique products on the market today: • The BRAVIA™ ZX1 is the world's thinnest*1 and lightest*2 LCD TV and features LED edge lighting (instead of the typical back lighting). This elegant set can easily...

  • Page 10
    ..., of course, Sony Pictures), is taking the movie-viewing experience to a whole new level. Featuring four times the resolution of Full HD and twice that of • The Cyber-shot™ HX1 compact digital camera is the world's first camera to allow users to capture wide-angle, panoramic views by holding...

  • Page 11
    ...the Sony Group as Sony Music Entertainment (SME). Sony Music Entertainment (Japan) Inc. increased its share to top the Japanese market, and Sony/ATV Music Publishing grew its share of new releases in the U.S. music publishing market, on its way to recording a substantial increase in operating profit...

  • Page 12
    .... Under the reorganization, effective on April 1, Sony's Electronics and Game businesses are now merged and reconfigured as two strong new groups: the Consumer Products & Devices Group and the Networked Products & Services Group. The first group represents our traditional and vital hardware; the...

  • Page 13
    ... & Services Group is comprised of Sony Computer Entertainment, VAIO personal computers, mobile products including Walkman ® digital music players, and Sony Media Software and Services, which is developing ware development and manufacturing, procurement and logistics operations, we have created...

  • Page 14
    ... further cost reductions, as well as to enhance product quality and green management. Yutaka Nakagawa, who initiated Sony's "Asset Light" strategy in the semiconductor Keiichiro Shimada Corporate Executive, Senior Vice President the software development process across these two new business groups...

  • Page 15
    ... is ranked as the third most admired company, ahead of all of our competitors, number three in the Business Superbrands survey of U.K. business professionals and number four in the Brand Japan Survey. To let this innovation drive Sony to new heights, we need to challenge our engineers, designers and...

  • Page 16
    ...few years, and is the most appropriate business model for today. The first major step in this process was the March 2008 sale of the production equipment that manufactures Cell and RSX our procurement activities across product lines, reducing the number of component suppliers and optimizing pricing...

  • Page 17
    ...most powerful technology and entertainment brand in the world. We are committed to transforming this company and are determined to prevail. On behalf of the management and all of the employees at Sony, I thank you for your continued support. June 19, 2009 Closing Our transformation will...

  • Page 18
    Review of Operations: Electronics and Game Businesses Electronics and Game 18

  • Page 19
    ... striving to improve profits and strengthen competitiveness through ongoing efforts to reduce costs and reassess operations. Unit sales of LCD televisions and market share (Millions of units) 15.2 10.6 6.3 12% 12% 14% 2007 *Years ended March 31 2008 2009 Overview of Key Businesses Despite...

  • Page 20
    ... under review, Sony released a number of new models designed to respond to a variety of customer needs. These include models in the Cyber-shotâ„¢ W series, aimed at priceconscious consumers; the Cyber-shot T series, which includes slim Unit sales of compact digital cameras and market share (13...

  • Page 21
    ... low-light situations. In January 2009, Sony released two new versions of Webbie HDâ„¢, a pocket-sized video camera, in the North American market. Moving forward, Sony will further expand its video camera lineup to include a broad range of models, from high-spec and value-added to affordably priced...

  • Page 22
    ... sales price competition intensified. In July 2008, Sony redefined the meaning behind the name "VAIO"-originally an acronym for "Video Audio Integrated Operation" when the brand was launched in 1996-to "Visual Audio Intelligent Organizer." By adding "intelligent" features, Sony will create new value...

  • Page 23
    ... only music and game downloads, but also movies and an application store. The Aino, Satio and Yari handsets, which Sony Ericsson plans to launch early in the 2009 fourth quarter, will be the first to embody the concept of "Communication Entertainment." Review of Operations in the Game Business Sony...

  • Page 24
    ... of the performance features of the 40GB model and twice the hard disc drive (HDD) capacity, all for the same price as its predecessor. In North America and Europe, 13.66 7.91 2008 PS2 2009 SCE responded to user demand for high-capacity HDDs-spurred by the launch of a video distribution service in...

  • Page 25
    ... of PSP-3000, a new model for the PSP® handheld entertainment system that enables users to enjoy games and other entertainment content with greater detail and also features a built-in microphone. In January 2009, SCE unveiled a series of vibrant, glossy-finish color options for customers in Japan...

  • Page 26
    ... continue to enhance the PS3™, PSP® and PS2 platforms and at the same time offer new user experiences that integrate network services and a variety of content. ©2009 Sony Computer Entertainment Inc. Manufacturers, cars, names, brands and associated imagery featured in this game in some cases...

  • Page 27
    PlayStation® Software Titles PLAYSTATION®3 software titles* *Some titles are yet to be released. GRAN TURISMO 5 LittleBigPlanet™ White Knight Chronicles The Last Guy MotorStorm™ 2 Trash Panic™ PSP® (PlayStation®Portable) software titles* *Some titles are yet to be released. ...

  • Page 28
    Review of Operations: Entertainment Business Entertainment 28

  • Page 29
    ...Office Revenue Market Share (Calendar Year 2008) Other success in Russia and India with the releases of The Very Best Movie 2 and Raaz 2 debuting at number one in their respective markets. Sony Pictures Worldwide Acquisitions Group acquired distribution rights to Terminator Salvation in a majority...

  • Page 30
    ... on FOX. March 2009 saw significant developments for SPT in India. Multi Screen Media Private Limited, SPE's joint venture television networks business in India, signed an agreement to air the popular IPL cricket tournament on its SET MAX television channel for up to eight years, with an option...

  • Page 31
    ... 2008 Columbia Pictures Industries, Inc. All Rights Reserved. Seven Pounds © 2009 Columbia Pictures Industries, Inc. and Beverly Blvd LLC. All Rights Reserved. Paul Blart : Mall Cop © 2009 Sony Pictures Television Inc. and Bluebush Productions, LLC. All Rights Reserved. Damages © 2009 Sony...

  • Page 32
    .... Sony Music Entertainment (Japan) http://www.sonymusic.co.jp SMEJ's business portfolio, in addition to music production, also includes artist management, and video and media production. Concurrent with the acquisition of Bertelsmann AG's 50% stake in SONY BMG, BMG Japan (BMJ, the BMG Label Group...

  • Page 33
    Artists from SME & SMEJ AC/DC P!nk Britney Spears Kings of Leon Jordin Sparks Beyoncé YUI ikimono-gakari JUJU 31

  • Page 34
    ... quarters of the fiscal year ended March 2009. This remains a challenging time for the music industry, which must manage its ongoing evolution from a physical product business to one which capitalizes on multiple formats and rights and a host of new digital and mobile business models, and do so at...

  • Page 35
    ... of Intellectual Property, Information Systems, B2B Solutions Business and the Disc Manufacturing Business Executive Vice President and General Counsel Executive Vice President, Officer in charge of Networked Products & Services Group (NPSG) Corporate Executives • Carry out business operations...

  • Page 36
    ... with the way management views its consolidated operations. Since Sony considers Sony Ericsson Mobile Communications AB and S-LCD Corporation to be integral to Sony's operations, Sony determined that the most appropriate method to report equity in net income (loss) of all affiliated companies was as...

  • Page 37
    ... Stock Information Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in billions (Yen per share amounts) 1st quarter 2008 2009 2nd quarter 2008 2009 2008 3rd quarter 2009 2008 4th quarter 2009 Sales and operating revenue ...Equity in net income (loss) of affiliated companies...

  • Page 38
    Segment Information Sony Corporation and Consolidated Subsidiaries-Years ended March 31 SALES AND OPERATING REVENUE BY BUSINESS SEGMENT* Yen in millions Years ended March 31 2007 2008 2009 Electronics Customers ...Intersegment...Total ...Game Customers ...Intersegment...Total ...Pictures Customers...

  • Page 39
    ...5,032,920 Note: The above table is a breakdown of Electronics sales and operating revenue to external customers by product category. SALES AND OPERATING REVENUE BY GEOGRAPHIC INFORMATION Yen in millions Years ended March 31 2007 2008 2009 Japan ...U.S.A...Europe ...Other ...Total ... 2,127,841 25...

  • Page 40
    ... Sheets Sony Corporation and Consolidated Subsidiaries-As of March 31 Yen in millions 2008 2009 ASSETS Current assets: Cash and cash equivalents...Call loan in the banking business ...Marketable securities ...Notes and accounts receivable, trade...Allowance for doubtful accounts and sales returns...

  • Page 41
    ...income- Unrealized gains on securities, net ...Unrealized losses on derivative instruments, net ...Pension liability adjustment ...Foreign currency translation adjustments ...Treasury stock, at cost Common stock (2008-1,015,596 shares) ...Common stock (2009-1,013,287 shares) ...Total liabilities and...

  • Page 42
    Consolidated Statements of Income Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions 2007 2008 2009 Sales and operating revenue: Net sales ...Financial service revenue ...Other operating revenue ...Costs and expenses: Cost of sales ...Selling, general and ...

  • Page 43
    Yen 2007 2008 2009 Per share data: Common stock Net income (loss) -Basic ...-Diluted ...Cash dividends ... 126.15 120.29 25.00 368.33 351.10 25.00 (98.59) (98.59) 42.50 41

  • Page 44
    ... 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 ...(Increase) decrease in other current assets ...Increase (decrease) in...

  • Page 45
    ... debt ...Payments of long-term debt ...Increase in short-term borrowings, net ...Increase in deposits from customers in the financial service business, net...Decrease in call money and bills sold in the banking business, net ...Dividends paid ...Proceeds from the issuance of shares under stock-based...

  • Page 46
    ... Statements of Changes in Stockholders' Equity Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock, at cost Total Balance at March 31, 2006...

  • Page 47
    ... other comprehensive income Treasury stock, at cost Total Balance at March 31, 2008 ...Exercise of stock acquisition rights ...Stock-based compensation ...Comprehensive income: Net loss ...Other comprehensive income, net of tax- Unrealized gains (losses) on securities: Unrealized holding losses...

  • Page 48
    ... of every month on the Tokyo Stock Exchange. Years ended March 31 2005 2006 2007 2008 2009 Stock price (Yen) At year-end ...High ...Low ...Annual increase/decrease ...Number of shares outstanding at year-end (Thousands of shares) ...Market capitalization at year-end (Yen in trillions)...Per...

  • Page 49
    ..., Japan Phone: 81-(0)3-3212-1211 OVERSEAS STOCK EXCHANGE LISTINGS New York and London stock exchanges JAPANESE STOCK EXCHANGE LISTINGS Tokyo and Osaka stock exchanges NUMBER OF SHAREHOLDERS (As of March 31, 2009) 761,242 INFORMATION REGARDING CSR (Corporate Social Responsibility) Sony's CSR Report...

  • Page 50
    ... sectors; (ii) exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony's assets and liabilities are denominated; (iii) Sony's ability to continue to design and develop and win...

  • Page 51
    Printed with volatile organic chemical (VOC)-free vegetable oil-based ink. SGS-COC-004300

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