Sony 2011 Annual Report Download - page 41

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39
Sony Ericsson
All Other
(Yen in billions)
(34.5)
4.2
2010 2011
Equity in net income (loss)
(Yen in billions)
460.8 447.8
(5.0)
8.6
2010 2011
Sales Operating income (loss)
Sony Ericsson Mobile Communications AB (Sony Ericsson) undertakes the design,
development, production and sales of mobile phones.
Sony Ericsson’s operating results are accounted for under the equity method and are not
consolidated in Sony’s consolidated financial statements, as Sony Corporation’s ownership
percentage of Sony Ericsson is 50%. However, Sony believes that the following disclosure provides
additional useful analytical information to investors regarding Sony’s operating performance.
All Other consists of various operating activities, including disc manufacturing busi-
ness activities and So-net Entertainment Corporation, an Internet-related service
business subsidiary operating mainly in Japan.
Sales decreased 2.8 percent year-on-year, to 447.8 billion yen.
The decrease in sales is mainly due to unfavorable foreign exchange rates and lower sales for the
disc manufacturing business.
Operating income of 8.6 billion yen was recorded, an improvement of 13.5 billion yen compared
to the previous fiscal year.
This improvement was mainly due to the fact that in the previous fiscal year there were charges
related to the withdrawal from the property management operation of an entertainment complex
in Japan and the termination payments of the property lease contract.
Sales of an unprofitable measuring systems business at the end of March 2010 also contributed
to the improvement in the segment’s results.
(For reference)
Sony recorded equity in net income of Sony Ericsson of 4.2 billion yen for the current fiscal
year, compared to equity in net loss of 34.5 billion yen in the previous fiscal year.
Sales for the year decreased 6.5% year-on-year to 6,034 million euros.
This decrease was due to a decline in unit shipments as a result of a focus on higher-end smart-
phones and a reduction in the size of the product portfolio.
Income before taxes of 133 million euros was recorded for the current year, an improvement
of 787 million euros compared to the previous year.
This improvement was mainly due to the positive impact of a rise in the average selling price, a
favorable product mix and improved cost structure. In addition, there was a benefit relating to the
reversal of warranty reserves.