Sony 2010 Annual Report Download

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Table of contents

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    ... ideas into reality and the belief that anything we can imagine, we can make real. The Sony brand ranges from electronics to entertainment, it reaches continents and cultures, and touches the lives of more people in more places and more ways than ever before. action do build design spirit think...

  • Page 4
    ... Stock Information Investor Information 2 4 14 18 20 22 44 45 58 59 For more information on Sony's financial performance, corporate governance, CSR and Financial Services business, please refer to the following websites. 2010 Annual Report on Form 20-F Corporate Governance Structure CSR Report...

  • Page 5
    ... PC and Other Networked Businesses 44% Fiscal Year 2009 21.0% 40.5% Digital Imaging 23% Audio and Video 17% Semiconductors 10% Components 16% 5.6% Consumer Products & Devices Networked Products & Services B2B & Disc Manufacturing Pictures Music Financial Services All Other Corporate...

  • Page 6
    ... excludes equity in net income (loss) of affiliated companies and restructuring charges*2 Note: Fiscal year 2009 operating income, as adjusted, also excludes a non-cash charge related to LCD television asset impairment.*2 -1.4% (40.8) 2010 Free cash ï¬,ow*2 (excluding Financial Services) (Yen...

  • Page 7
    ... of our game business, VAIOâ„¢ personal computers, other networked mobile products and our network services. The mandate of this group is to accelerate innovation of our networked products and services to deliver new and exciting user experiences to our customers. Key to our new structure are three...

  • Page 8
    5

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    ... transformation. Given today's competitive business landscape, we must introduce our product lineup to consumers more dynamically and directly. To this end, our new Global Sales and Marketing Platform is reaching new customers in new geographies by reinventing our retail strategy on a global basis...

  • Page 10
    ...â„¢ LCD televisions with LED backlight technology and our new Monolithic Design is a clear example of how Sony will continue to own the living room by creating products that deliver on Sony's promise of exceptional TV quality and performance-a promise that continues with the upcoming launch of 3D...

  • Page 11
    ... touchscreen display, the Xperia™ X10 also features applications to intelligently manage both communications and media from multiple sources. With products like this, I am confident that Sony Ericsson is poised to further restore its competitiveness in 2010. theater chains in the United States...

  • Page 12
    ... S adly, 2009 marked the untimely passing of perhaps the biggest superstar of all time, Michael Jackson. We were extremely fortunate that he graced our music company for so many years and served as our Sony/ATV business partner. I am proud we could help honor his legacy and celebrate his life by...

  • Page 13
    ... business to a leading market position is the key mid-term objective. Although it recorded an operating loss, profitability in the TV business improved dramatically in fiscal year 2009, due to a complete overhaul of the business' cost structure and supply chain. We have an innovative new product...

  • Page 14
    ... and projecting equipment, to televisions, Blu-ray Disc™ players, PS3™ and more-we are the leader in professional and consumer 3D hardware. We are also industry leaders in the production of 3D film and game content, and we also continue to work with our partners to provide the most compelling...

  • Page 15
    ...States, compatible with 2010 model network-enabled BRAVIA TVs and Blu-ray Disc players, as well as VAIO and other Windows-based PCs. With our network services, we are now offering a rich assortment of content, including movies, television programming, games, eBooks and more. Our Reader digital books...

  • Page 16
    ... deliver entirely new entertainment experiences. We must increase our speed to market with desirable and competitively priced products and services. And we must meet the aggressive financial targets we have set across all of our businesses, while maintaining integrity in everything Howard Stringer...

  • Page 17
    ... year of 3D entertainment at home. A steady stream of 3D-compatible products Beginning in June 2010, Sony will release 3D-compatible BRAVIAâ„¢ LCD televisions, to be followed by Blu-ray Discâ„¢ players and home theater systems. Other 3D-compatible products including VAIOâ„¢ PCs and digital cameras...

  • Page 18
    ... packaged software, to include broadcasting and networks. Blu-ray Discâ„¢ (movies, games) Sony PCL Display Sony has played an important role in the drive to make digital cinema and 3D movies widely available. Now, Sony brings 3D entertainment into the home. Broadcasting Network services Digital...

  • Page 19
    ... of 3D television. Through an alliance with ESPN, the largest sports network in the United States, Sony will participate in the production of 3D coverage of such events as the X Games and U.S. college football, allowing viewers to enjoy the full impact of 3D sports broadcasting. Sony is also driving...

  • Page 20
    ... platforms in addition to BRAVIA LCD televisions, including 3D-compatible Blu-ray Disc-enabled devices, VAIO PCs and PS3™. A pioneer in professional-use 3D-compatible equipment Already a leader in the field of digital cinema, thanks to such products as professional-use digital cinema projectors...

  • Page 21
    ...ever eBook readers in the United States in 2006, and in the following year, a number of other manufacturers came out with their own models, a development that triggered rapid market growth. Sony's Reader is a digital reading device using electronic paper (e-paper) technology to display digital books...

  • Page 22
    ...U.S. eBook market. Sony also strives to provide added value in the hardware itself. In addition to touchscreen models, cooperation with Sony Ericsson Mobile Communications AB enabled Sony to launch a model that supports thirdgeneration (3G) wireless technology-making the Reader Daily Editionâ„¢ Sony...

  • Page 23
    ...digital music players and other products. Operating income in the game business deteriorated despite cost reductions for PS3â„¢ hardware and higher unit sales of PS3â„¢ software, reï¬,ecting lower unit sales of PS2 software and PSPâ„¢ hardware. 1,755.6 1,575.8 (87.4) 2009 (83.1) 2010 B2B & Disc...

  • Page 24
    ... So-net Entertainment Corporation, an Internet-related service business subsidiary operating mainly in Japan. Sales in All Other declined 17.8% year-on-year, to ¥261.9 billion. The decrease in sales was attributable mainly to deteriorating sales of mobile phones in the Japanese market in Sony EMCS...

  • Page 25
    ... the formation of strategic alliances with the Hon Hai Group for the production of LCD televisions for sale in the Americas and Europe. The Sony Group sold a portion of the equity and certain manufacturingUnit sales of LCD televisions and market share (Millions of units) related assets of our...

  • Page 26
    BRAVIAâ„¢ LCD television 23

  • Page 27
    ...be key locations for the production of Sony LCD televisions for the Americas and Europe, respectively. In addition to these actions, Sony strengthened its operations and pressed ahead steadily with such efforts as accelerating inventory turnover and shortening lead times for product design. Sales of...

  • Page 28
    "α" NEX-5 25

  • Page 29
    ...to offer a broad range of video cameras, from highspec, value-added models to affordable ones. *2 Sony estimate, as of May 2010 Home Video Fiscal year 2009 marked a momentous advance in Sony's Blu-ray Discâ„¢ recorder and player business. Sales of Sony Blu-ray Disc players in the period amounted to...

  • Page 30
    Handycam® HDR-CX350V 27

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    40%*3. Sony's sales of Blu-ray Disc recorders totaled 700,000 units, up 200,000 from fiscal year 2008. This summer Sony will release 3D-compatible Blu-ray Disc players in the United States and Europe, underscoring the importance of these products in its Groupwide drive to advance its 3D businesses....

  • Page 32
    VAIOâ„¢ W series 29

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    ...million units. While the global market for PCs continues to recover, mainly owing to the increasing prevalence of low-priced models, price competition has further intensified. In October 2009, Sony reinforced its lineup of high-value-added models, launching the VAIO X series of thin mobile PCs with...

  • Page 34
    ... the distinctive entertainment experience PSP ™ provides. In fiscal year 2009, sales of PlayStation®2 (PS2) totaled 7.3 million units, on par with the previous fiscal year. Sales prices were revised in Europe and North America in April 2009, and the platform continues to perform well in...

  • Page 35
    ...PS3™ and PSP™ users. In fiscal year 2009, Sony 9.1 10.1 13 13.8 14.1 9.9 13.7 2008 launched video delivery services in Europe and digital comics services in Japan, North America and Europe. PSN services are currently available in 58 countries and regions, and the number of registered accounts...

  • Page 36
    ...Blu-ray Disc players, as well as VAIO and other Windows-based PCs. Sony will continue to provide customers with a variety of digital entertainment content, while aiming to increase the value and relevance of each individual product through such network services. powered communications entertainment...

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    PICTURES Sony Pictures Entertainment continues to be a leader in the development, production and distribution of motion pictures, television programming and online entertainment globally. The studio achieved a company record of $3.6 billion in worldwide box office receipts for the 2009 calendar ...

  • Page 38
    © 2009 Columbia Pictures Industries, Inc., All Rights Reserved. Michael Jackson's THIS IS IT 35

  • Page 39
    ... with Sony's electronics business to explore new release models such as the exclusive, advance release of Cloudy With a Chance of Meatballs on networked BRAVIA LCD televisions and Blu-ray Disc players. *7 Digital Entertainment Group (DEG) Titles from Sony Pictures © 2009 Columbia Pictures...

  • Page 40
    ... Lead Actor in a Drama Series (Breaking Bad) and Outstanding Guest Actor in a Drama Series (Damages and Rescue Me). *8 Neilsen TV Ratings © 2010 Sony Pictures Television Inc., All Rights Reserved. © 2010 Sony Pictures Television Inc., All Rights Reserved. © 2010 Sony Pictures Television...

  • Page 41
    ... production services by opening a new digital intermediate facility named Colorworks to serve Sony Pictures and industry clients in color correction and mastering of 2D and 3D movies for theatrical and home release. The group Digital Production Sony Pictures Digital Productions group's leadership...

  • Page 42
    ... year-and SME artists took home a total of 38 awards. SMEJ. As a result, SMEJ increased its market share and held onto the number one position in the Japanese market. Although overall industry growth for digital media slowed in part due to contraction in the ringtone business in the United States...

  • Page 43
    ...and digital content. The new venture includes the global TV franchises The X Factor and Got Talent, as well as content from superstar artists such as Leona Lewis, Susan Boyle and Il Divo. In the spirit of Sony United, SME partnered with sister company, Sony Pictures Entertainment, on Michael Jackson...

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    Beyoncé 41

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    ...including Akon, Colbie Caillat, Lady Gaga, John Mayer, Shakira and Taylor Swift. By focusing on signing artists and acquiring catalogs, Sony/ATV, for the first time in the company's history, was Artists from SME & SMEJ Ke$ha Usher Susan Boyle Kings of Leon Carrie Underwood Michael Jackson 42

  • Page 46
    ... that Sony/ATV was ranked fifth in market share just a few years ago. *9 U.S. market share is based on the amount of radio airplay that Sony/ATVcontrolled songs receive in a given period. Also in calendar year 2009, Sony/ATV Music Publishing was named the American Society of Composers, Authors and...

  • Page 47
    ... Products, Professional Solutions, and Device businesses ** Representative Corporate Executive Officer concurrently serving as Director Keiji Kimura Nicole Seligman Kazuo Hirai Masaru Kato Executive Vice President, Officer in charge of Intellectual Property and the Disc Manufacturing business...

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    ... Section Five-Year Summary of Selected 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 46 47 48 50 52 54...

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    Five-Year Summary of Selected Financial Data Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions (Yen per share amounts) 2006 2007 2008 2009 2010 FOR THE YEAR Sales and operating revenue ...Equity in net income (loss) of affiliated companies ...Operating income (...

  • Page 50
    Quarterly Financial and Stock Information Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in billions (Yen per share amounts) 1st quarter 2009 2010 2nd quarter 2009 2010 2009 3rd quarter 2010 2009 4th quarter 2010 Sales and operating revenue ...Equity in net income (loss) ...

  • Page 51
    ...millions Years ended March 31 2008 2009 2010 Consumer Products & Devices ...Networked Products & Services ...B2B & Disc Manufacturing...Pictures ...Music ...Financial Services ...Equity in net income (loss) of Sony Ericsson ...All Other...Total ...Corporate and elimination ...Consolidated operating...

  • Page 52
    ... Years ended March 31 2008 2009 2010 Consumer Products & Devices Televisions ...Digital Imaging ...Audio and Video ...Semiconductors ...Components ...Other ...Total ...Networked Products & Services Game ...PC and Other Networked Businesses ...Total ...B2B & Disc Manufacturing ...Pictures ...Music...

  • Page 53
    ...Sony Corporation and Consolidated Subsidiaries-As of March 31 Yen in millions 2009 2010 ASSETS Current assets: Cash and cash equivalents...Marketable securities ...Notes and accounts receivable, trade...Allowance for doubtful accounts and sales returns...Property......Other ...Total assets ...(Continued...

  • Page 54
    ...fits and other ...Other ...Total liabilities ...Commitments and contingent liabilities EQUITY Sony Corporation's stockholders' equity: Common stock, no par value- 2009-Shares authorized 3,600,000,000, shares issued: 1,004,535,364 ...2010-Shares authorized 3,600,000,000, shares issued: 1,004,571,464...

  • Page 55
    Consolidated Statements of Income Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions 2008 2009 2010 Sales and operating revenue: Net sales ...Financial service revenue ...Other operating revenue ...Costs and expenses: Cost of sales ...Selling, general and ...

  • Page 56
    Yen 2008 2009 2010 Per share data: Common stock Net income (loss) attributable to Sony Corporation's stockholders -Basic ...-Diluted ...Cash dividends ... 368.33 351.10 25.00 (98.59) (98.59) 42.50 (40.66) (40.66) 25.00 53

  • Page 57
    Consolidated Statements of Cash Flows Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions 2008 2009 2010 Cash ï¬,ows from operating activities: Net income (loss) ...Adjustments to reconcile net income (loss) to net cash provided by operating activities- Depreciation...

  • Page 58
    ... (decrease) in short-term borrowings, net ...Increase in deposits from customers in the financial service business, net...Dividends paid ...Proceeds from the issuance of shares under stock-based compensation plans . . Proceeds from the issuance of shares of Sony Financial Holdings ...Other ...Net...

  • Page 59
    ...' Equity Sony Corporation and Consolidated Subsidiaries-Years ended March 31 Yen in millions Additional paid-in capital Accumulated other comprehensive income Treasury stock, at cost Sony Corporation's stockholders' Noncontrolling equity interests Common stock Retained earnings Total equity...

  • Page 60
    ... other comprehensive income Treasury stock, at cost Sony Corporation's stockholders' Noncontrolling equity interests Common stock Retained earnings Total equity Balance at March 31, 2009 ...630,765 1,155,034 1,916,951 Exercise of stock acquisition rights ...57 57 Stock-based compensation...2,174...

  • Page 61
    ... of daily closing prices for each day of every month on the Tokyo Stock Exchange. Years ended March 31 2006 2007 2008 2009 2010 Stock price (Yen) At year-end ...High ...Low ...Annual increase/decrease ...Number of shares outstanding at year-end (Thousands of shares) ...Market capitalization...

  • Page 62
    ... TREASURY SERVICES PLC. Investor Relations Europe 15th Floor, Aviva Tower, St. Helens, 1 Undershaft, London EC3A 8NP Phone: 44-(0)20-7426-8696 SONY ON THE INTERNET Sony's Investor Relations Home Pages on the World Wide Web offer a wealth of corporate information, including the latest annual report...

  • Page 63
    ...) 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, including platforms within the game business, which are offered in highly competitive markets characterized by continual new product introductions...

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