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Sony Mobile
Communications
All Other
(Yen in billions)
4.2
31.4
7 7. 7
2011 2012
Sales Operating income
(Yen in billions)
447.8 442.7
7.1
(3.5)
2011 2012
Sales Operating income (loss)
Sony Mobile Communications AB (“Sony Mobile”) undertakes the
design, development, production and sales of mobile phones.
On February 15, 2012, Sony acquired Ericsson’s 50% equity interest in Sony
Ericsson, and changed its name to Sony Mobile Communications AB (“Sony
Mobile”) upon becoming a wholly owned subsidiary of Sony. The following
disclosure presents financial results at Sony Mobile, which aggregates the results
of its worldwide subsidiaries on a euro basis.
All Other consists of various operating activities, including disc manu-
facturing business activities and So-net Entertainment Corporation, an
Internet-related service business subsidiary operating mainly in Japan.
Sales and operating revenue declined 1.2% year-on-year, to ¥442.7 billion.
The decrease in sales is due mainly to significantly lower sales in the mobile
phone original equipment manufacturing (OEM) business in Japan and
unfavorable foreign exchange rates.
The segment reported an operating loss of ¥3.5 billion, compared with oper-
ating income of ¥7.1 billion in the previous fiscal year.
This result was due largely to significantly lower sales, inventor y devaluation and
asset impairments in the manufacturing system business of Sony Manufacturing
Systems*, which were partially oset by an increase in profit in the disc manu-
facturing business, owing to the reversal of a patent royalty accrual.
(For reference)
Sales and operating revenue declined 12.4% year-on-year, to €5,289 million.
The decline reflec ts certain component shor tages resulting from the Great
East Japan Earthquake and the floods in Thailand, in addition to the lower
number of feature phones shipped as a result of the company’s focus on
smartphones.
The segment reported a loss before income taxes of €536 million, com-
pared with operating income of €133 million in the previous fiscal year.
A loss before income taxes was posted, owing to the decrease in units
shipped and the impact of intense price competition for smartphones and
an increase in restructuring charges.
Note:
The sales and operating revenue and operating income (loss) of Sony Mobile shown in the table
are included in Sony’s consolidated financial statements. (‘Sales and operating revenue’ reflects
sales and operating revenue from February 16 through March 31, 2012. ‘Operating income (loss)’
reflects Sony’s equity earnings (loss) in Sony Ericsson prior to consolidation (i.e., up to and includ-
ing February 15, 2012), Sony Mobile’s operating income (loss) from February 16 through March 31,
2012 and a remeasurement gain of ¥102.3 billion.)
* Sony Manufacturing Systems was merged into Sony EMCS Corporation in April 2012.
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