Sony 2012 Annual Report Download - page 7

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Japan Earthquake and the 2011 Thailand floods. Conditions were exacerbated by the
economic downturn across the developed world, which caused other currencies to
fall in comparison with the persistently strong yen. Owing to reduced sales in the
Consumer Products & Services and Professional, Device & Solutions segments, our
consolidated sales and operating revenue for the period declined 9.6%. We recorded
an operating loss of 67.3 billion yen, compared to the 199.8 billion yen of operating in-
come recorded in the previous fiscal year. This deterioration in operating income was
due to a decline in net sales, and a significant deterioration in equity in net income
(loss) of aliated companies, despite the remeasurement gain associated with ob-
taining control of Sony Mobile Communications*.
Net loss attributable to Sony Corporation’s stockholders was 456.7 billion yen. This
includes a substantial valuation allowance, which is a non-cash charge that does not
have an impact on consolidated operating income (loss) or cash flows. Nonetheless,
the recording of a loss of this magnitude weighs heavily on me, and as CEO of this
company, I fully intend to turn this situation around.
Toward Future Growth
We will not delay the rebuilding of our electronics business. To accomplish this, we
must urgently acknowledge the issues at hand and swiftly and decisively execute
initiatives to resolve them, so that we may restore Sony to excellence.
Transforming Our Electronics Business
We are taking the following important steps in response to the many challenges our
electronics business faces. In the rapidly changing and highly competitive global elec-
tronics market, we must develop groundbreaking products, services and technologies
that maximize Sony’s distinctive technologies and restore our television business to
profitability. We must also accelerate management decision making and make focused
and selective investments based on our long-term strategies. In implementing these
changes, I strongly believe that our electronics business will be rebuilt.
* On February 15, 2012, Sony acquired Ericsson’s 50% equity interest in Sony Ericsson, and changed its name to Sony
Mobile Communications AB upon becoming a wholly owned subsidiary of Sony.
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