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Business and CSR Review
Annual Report 2013
Annual Report 2013 2013年 3月期
アニュアルレポート  年 月期
ソニー株式会社

Table of contents

  • Page 1
    Annual Report 2013 Business and CSR Review

  • Page 2

  • Page 3
    ...SonyInfo/IR/library/sec.html Financial Services Business (Sony Financial Holdings Inc.) http://www.sonyfh.co.jp/index_en.html Effective from 2012, Sony has integrated its printed annual and corporate social responsibility (CSR) reports into one report that provides essential information on related...

  • Page 4
    Letter to Stakeholders: A Message from Kazuo Hirai, President and CEO 2

  • Page 5
    BE MOVED Sony is a company that inspires and fulfills the curiosity of people from around the world, using our unlimited passion for technology, services and content to deliver groundbreaking new excitement and entertainment to move people emotionally, as only Sony can. 3

  • Page 6
    ..., I visited 45 different Sony Group sites in 16 countries, ranging from electronics sales offices to manufacturing facilities, R&D labs, and entertainment and financial services locations. This enabled me to interact with a wide range of employees, as well as with local management. I also spent as...

  • Page 7
    ... products-related business, as well as the sale of assets including our U.S. headquarters building in New York City. Furthermore, in order to increase efficiency and reinforce our business infrastructure, we implemented structural reforms including optimizing resources and streamlining our marketing...

  • Page 8
    ... operating profit by delivering financial products and services, primarily life and non-life insurance, with high customer satisfaction. Consolidated sales and operating revenue in fiscal year 2012 rose 4.7%, to 6,800.9 billion yen, reflecting the positive impact of the consolidation of Sony Mobile...

  • Page 9
    ...Panasonic Corp. for joint development of next-generation OLED panels Sold the chemical products-related business Acquired U.S.-based Gaikai, Inc. Made So-net Entertainment into a wholly-owned subsidiary Olympus Corp. issued new shares to Sony through a third-party allotment under a capital alliance...

  • Page 10
    ... profitability in the entertainment and financial services businesses and continue to reinforce our financial foundations. Key Strategies for FY 2013 Reinforce the Electronics Business Accelerate execution of updated strategies in the three core businesses (Mobile, Imaging, Game) â- Return the TV...

  • Page 11
    ... our target of profitability in fiscal year 2013. ＜ Imaging ＞ Sony's Imaging business encompasses products for both professionals and consumers, as well as our cutting-edge and market-leading image sensor business. We plan to continue to commercialize new sensor technologies that deliver...

  • Page 12
    ... of compelling software titles. Our next-generation platform, PlayStation®4, scheduled for launch during the 2013 yearend holiday sales season, will deliver the kind of quality gaming experience only possible with a dedicated gaming system. Our plan is to leverage Gaikai's proprietary network tech...

  • Page 13
    ... our goal of returning the television business to profitability in fiscal year 2013. While continuing our cost reduction initiatives from fiscal year 2012, in 2013 we plan to aggressively drive sales growth by enhancing the value and appeal of our product lineup. Specifically, we will bolster both...

  • Page 14
    ...our worldwide television networks in rapidly growing markets such as India. Sony is also exploring new digital distribution methods for its product, while optimizing existing distribution methods. Our Music segment, which comprises both recorded music and music publishing businesses, will strive to...

  • Page 15
    publishing company in the world-will continue to reinforce its position through efficient management and strong creative decisions, and is expected to generate steady profit. The financial services business will continue working to deliver highly dependable financial products and services, thereby ...

  • Page 16
    ...extends to all of our stakeholders, including shareholders, business partners, employees and local communities, as we seek to enhance our corporate value through sound, ethical and responsible business practices. Fulfilling our responsibilities as a corporate citizen is fundamental to the success of...

  • Page 17
    products, services and content, a fully aligned management team and employees worldwide who are committed to change for the future of Sony, I'm confident that we are on the right track to drive growth and create corporate value, as well as to realize our mission of being a company that inspires ...

  • Page 18
    ...Xperiaâ„¢ Z Sony's Evolution in Mobile Products "Watch," "Listen," "Create," and "Play" These models were developed with the aim of delivering four rich user experiences for consumers: "Watch," "Listen," "Create," and "Play." Users "Watch" through the Full HD display powered by Mobile Bravia Engine...

  • Page 19
    ... that inspire and delight users by incorporating products, user experiences and technology that only Sony can provide, such as signature applications for easy access to Sony's online network services and intuitive 'onetouch' connection with other devices. Sony Mobile's goal is to provide innovative...

  • Page 20
    ...!" * Camera, WALKMAN ®, Album, Movie and Sony Entertainment Network applications Akihiro Hiraiwa Vice President, Development Tokyo, Sony Mobile Communications Inc. "We've loaded Xperia™ Z and Xperia™ Tablet Z with a broad array of cutting-edge Sony technologies, including Mobile Bravia Engine...

  • Page 21
    ... simply to create signature product designs that are successful in the market and inspire people," explains Jeanna Kimbré, Sony Mobile's Director of Creative Product Design. "Our design strategy for Xperia™ Z was to create a global flagship product with an iconic design by appealing to consumers...

  • Page 22
    ... intend to expand joint promotions and campaigns with other parts of the Sony Group." * Source: NTT DOCOMO, INC. Katsuyuki Kaneko Head of Marketing Department, Sales & Marketing Division, Sony Mobile Communications Japan, Inc. "Sony Mobile's global marketing campaign has been particularly effective...

  • Page 23
    ... Sturm. "I'm confident that this team can help us take our business to the next level." * Source: GfK Retail and Technology, Smartphone market share (in volume), full year 2012 Gerhard Sturm General Manager, Sales and Marketing (Central Europe), Sony Mobile Communications AB "Our thinking is very...

  • Page 24
    ... to pursue its corporate value enhancement through innovation and sound business practice." （Sony Group Code of Conduct, adopted in May 2003) Corporate Governance Community Compliance Key CSR Agenda of the Sony Group Environment Human Resources Quality and Services Responsible Sourcing 22

  • Page 25
    ... continue to promote bold initiatives, including in its CSR agenda. Sony Group's Key CSR Agenda: Seven Focus Areas Corporate Governance/Compliance/Human Resources/Responsible Sourcing/ Quality and Services/Environment/Community As stated in the Sony Group Code of Conduct, "Sony Group recognizes...

  • Page 26
    .... This has enabled Sony to build and maintain a corporate governance system that facilitates swift decision-making and the efficient management of the Sony Group. Human Resources Sony engages in a wide range of business activities in locations around the world and employs people of many different...

  • Page 27
    ..., promoted broad-ranging community engagement with a focus on children. A principal emphasis is education for children, which Sony provides in locations around the world through the Sony Science Program, as well as through arts education, career advisory support and other programs. Other global...

  • Page 28
    .... * Proportion of Sales by Business Imaging Products & Solutions Game Mobile Products & Communications Home Entertainment & Sound Devices Televisions Corporate 0.7% 61.9% Products Pictures Music Financial Services All Other Components Other 1.8% Semiconductors Digital Imaging 51.7% 7.8% 14...

  • Page 29
    ..., Sony Music Entertainment (Japan) Inc. and Sony/ATV Music Publishing. Sales Operating income （Yen in billions Financial Services The Financial Services segment results include Sony Financial Holdings Inc. (SFH) and SFH's consolidated subsidiaries, such as Sony Life Insurance Co., Ltd. (Sony Life...

  • Page 30
    ..., Services and Content Sony is engaged in a broad range of businesses, including the electronics businesses, which include digital imaging, game, mobile communications devices and televisions; the entertainment businesses, which cover pictures and music; and the financial services business. Digital...

  • Page 31
    ... game developers to expand the potential of games, thereby offering users entirely new entertainment experiences. © 2013 Sony Computer Entertainment Inc. All Rights Reserved. Design and specifications are subject to change without notice. Personal Computers VAIO® Duo 13 and VAIO® Pro 11...

  • Page 32
    ... applications and access to extensive network services, putting entertainment at users' fingertips. Sony Mobile Communications's first tablet, Xperiaâ„¢ Tablet Z, was developed through collaboration between Sony Mobile and Sony's tablet development team, members of which were shifted to Sony Mobile...

  • Page 33
    ...to offer new perspectives on listening to music. As a result of a creative collaboration with Sony Music Entertainment, MDR-1 series headphones deliver crystal-clear, natural vocals and rich, low-register sound and instrumental balance, allowing listeners to enjoy music the way music professionals...

  • Page 34
    ... air on CBS owned-and-operated stations, and on major station groups around the U.S. © 2013 Sony Pictures Television Inc. All Rights Reserved. Elysium In the year 2154, two classes of people exist: the very wealthy, who live on a pristine man-made space station called Elysium, and the rest, who...

  • Page 35
    ... new connection with the Naughties -Vexy and Hackus-or will the Smurfs convince her that their love for her is True Blue? Returning cast includes Neil Patrick Harris, Jayma Mays, with Katy Perry as Smurfette and Hank Azaria as Gargamel. © 2013 Columbia Pictures Industries, Inc. All Rights Reserved...

  • Page 36
    ..., including 16 GR AMMY® Awards. Billboard named her the Top Female Artist and Top Radio Songs Artist of the 2000s decade. The Recording Industry Association of America also recognized Beyoncé as the Top Certified Artist of the 2000s. Beyoncé kicked off 2013 with a historic halftime performance...

  • Page 37
    ... worldwide. After several highly acclaimed and internationally televised performances, including the 2012 London Olympics opening and closing ceremonies, Emeli Sandé has quickly become one of the music industry's brightest and most promising stars. In early 2013, she was presented with both the...

  • Page 38
    ... in Japan. With her first Asian tour scheduled for 2013, Kana is looking to establish herself as an artist with global appeal. Financial Services While striving to maintain a highly sound financial position, the Sony Financial Group's core companies- Sony Life Insurance Co., Ltd. (Sony Life), Sony...

  • Page 39
    CSR Highlights 38 40 42 44 46 48 52 Corporate Governance Compliance Human Resources Responsible Sourcing Quality and Services Environment Community 37

  • Page 40
    ...Division, Internal Audit Department and other relevant groups. The Sony Corporation Group Risk Office is responsible for promoting risk management initiatives, such as business continuity planning, across the organization. Governance Structure Sony Corporation is governed by its Board of Directors...

  • Page 41
    ... Solutions Business, R&D Platform and Common Software Design Executive Vice President, Officer in charge of PC Business, Mobile Business and UX, Product Strategy and Creative Platform Executive Vice President, Officer in charge of Human Resources and General Affairs ** Representative Corporate...

  • Page 42
    ...11 Product and Service Safety Environmental Conservation Fair Competition Advertising Public Disclosure Personal Information Intellectual Property Confidential and Proprietary Information Fair Procurement Recording and Reporting of Information Sony Group Code of Conduct and Internal Hotline System...

  • Page 43
    ... standards globally to ensure network security and the protection of privacy. This organization coordinates with individuals responsible for information security and privacy at Sony Group companies globally to create a Group-wide information security and personal information management system. Under...

  • Page 44
    ... career-building efforts. Fostering Global Business Leaders Sony Group Diversity Policy As part of its corporate strategy, Sony has recently reaffirmed its commitment to diversity and issued a new Diversity Statement. In 2000, Sony established Sony University to provide education and training...

  • Page 45
    ... 100 Sony employees, primarily management-level and mid-tier executives, have rotated through a series of job assignments designed to match talent with need, regardless of nationality. In 2010, Sony introduced a Global Job Posting program that enables Sony Group employees around the world to...

  • Page 46
    ... in its supply chain, Sony works closely with its suppliers and subcontractors to address human rights, labor, health and safety, and environmental protection issues related to the procurement of raw materials and components. As part of its overall efforts to promote these responsible sourcing...

  • Page 47
    ... and Parts Production (devices/products) Sony Sales Retail Subcontractors Production Initiatives Related to Paper Procurement Sony recognizes that paper resources are limited and strives to reduce the amount of office paper used at sites and limit the number of pages in its product manuals. Sony...

  • Page 48
    ... purchases Customer Information Centers Customer Service-related Departments Management Inquiries about use Inquiries about repairs Database Common issues targeted/efforts to enhance quality Analysis of customer feedback Product Planning and Design Departments and Others Checks and analysis...

  • Page 49
    ... initiatives, providing live chat capabilities on its websites. Customer feedback helps Sony improve its products and services. To this end, opinions about products and reports of malfunctions received from customers by Sony Customer Information Centers are shared with related departments, ensuring...

  • Page 50
    ...of a sustainable society. biodiversity-across all product life cycle stages. To achieve these targets, Sony will leverage its comprehensive global environmental management system, which integrates the Company's corporate headquarters with its business divisions and sites worldwide. In addition, the...

  • Page 51
    ...new applications in the construction of new electricity services, Authentication outlet among other areas. partners. In fiscal year 2012, this enabled Sony to estimate greenhouse gas emissions for its entire electronics-related value chain as well as portions of its entertainment-related value chain...

  • Page 52
    ... responses, as part of its efforts to ensure the proper management of chemical substances. Conserving Resources Reducing waste at sites In fiscal year 2012, total Waste at Sites waste generated by Sony (Thousands of tons) Group sites amounted to 276 approximately 85 thousand tons, a reduction...

  • Page 53
    ...these projectors, Sony also developed a lamp that lasts up to 5,000 hours*3 before requiring replacement, thereby realizing a reduction in resource use. *1 In High mode *2 Comparison with VPL-CW125 *3 In Low mode Blu-ray 3Dâ„¢ Home Theater System (BDV-N790W)* 1 This system employs speakers that use...

  • Page 54
    ... & Products â- Science education Career education Coztribute to tue fesolutioz of Global Issues Employees â- Coztribute to tue Advazcemezt of Sozy's Busizess Activities Increase brand value Link initiatives with marketing â- Foster human resources â- Support business in emerging economies...

  • Page 55
    In addition, Sony operates interactive science, technology and entertainment museums in Tokyo and Beijing (Sony ExploraScience) and in New York (Sony Wonder Technology Lab), which attract a combined total of 510,000 visitors annually. Sony also offers a variety of career-oriented classes focused on ...

  • Page 56
    ...-affected areas. Sony Group employees have been organizing and conducting their own volunteer program. A total of approximately 380 employees participated in the program over a total of nine trips. Sony Life Insurance Co., Ltd. also is undertaking a wide range of volunteer activities centered on its...

  • Page 57
    Financial Section 56 57 58 60 Five-Year Summary of Selected Financial Data Consolidated Statements of Income Consolidated Balance Sheets Consolidated Statements of Cash Flows 55

  • Page 58
    Five-Year Summary of Selected Financial Data Sony Corporation and Consolidated Subsidiaries Years ended March 31 Yen in millions 2009 2010 2011 2012 2013 FOR THE YEAR Sales and operating revenue ...Equity in net income (loss) of affiliated companies ...Operating income (loss) ...Income (loss) ...

  • Page 59
    Consolidated Statements of Income Sony Corporation and Consolidated Subsidiaries Years ended March 31 Yen in millions 2011 2012 2013 Sales and operating revenue: Net sales ...Financial services revenue ...Other operating revenue ...Costs and expenses: Cost of sales ...Selling, general and ...

  • Page 60
    ... Balance Sheets Sony Corporation and Consolidated Subsidiaries As of March 31 Yen in millions 2012 2013 ASSETS Current assets: Cash and cash equivalents ...Marketable securities ...Notes and accounts receivable, trade ...Allowance for doubtful accounts and sales returns ...Inventories ...Other...

  • Page 61
    ... income taxes ...Future insurance policy benefits and other ...Policyholders' account in the life insurance business ...Other ...Total liabilities ...Redeemable noncontrolling interest ...EQUITY Sony Corporation's stockholders' equity: Common stock, no par value- 2012-Shares authorized 3,600,000,000...

  • Page 62
    ... of marketable securities held in the financial services business for trading purposes, net ...(Gain) loss on revaluation or impairment of securities investments held in the financial services business, net ...Deferred income taxes ...Equity in net (income) losses of affiliated companies, net...

  • Page 63
    Yen in millions 2011 2012 2013 Cash flows from investing activities: Payments for purchases of fixed assets ...Proceeds from sales of fixed assets ...Payments for investments and advances by financial services business Payments for investments and advances (other than financial services business) ...

  • Page 64
    ... in March. 2. Stock prices and the Nikkei stock average is based on a simple average of daily closing prices for each day of every month on the Tokyo Stock Exchange. Years ended March 31 2009 2010 2011 2012 2013 Stock price (Yen) At year-end ...High ...Low ...Annual increase/decrease ...Number of...

  • Page 65
    ..., Japan Phone: 81-(0)3-3212-1211 OVERSEAS STOCK EXCHANGE LISTINGS New York and London stock exchanges JAPANESE STOCK EXCHANGE LISTINGS Tokyo stock exchange NUMBER OF SHAREHOLDERS (As of March 31, 2013) 745,471 INFORMATION REGARDING CSR (Corporate Social Responsibility) Information about Sony's CSR...

  • Page 66
    Annual Report 2013 2013 3 Year Ended March 31, 2013 Sony Corporation