Form 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of January 2008
Commission File Number: 001-06439
SONY CORPORATION
(Translation of registrant's name into English)
1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN
(Address of principal executive offices)
The registrant files annual reports under cover of Form 20-F.
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F,
Form 20-F X Form 40-F __
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934,
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):82-______
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SONY CORPORATION
(Registrant)
By: /s/ Nobuyuki Oneda
(Signature)
Nobuyuki Oneda
Executive Vice President and
Chief Financial Officer
Date: January 31, 2008
List of materials
Documents attached hereto:
i) Press release announcing 3rd Quarter Results
Sony Corporation
1-7-1 Konan, Minato-ku
Tokyo 108-0075 Japan
No: 08-011E
3:00 P.M. JST, January 31, 2008
Consolidated Financial Results
for the Third Quarter Ended December 31, 2007
Tokyo, January 31, 2008 -- Sony Corporation today announced its
consolidated results for the third quarter of the fiscal year ending
March 31, 2008 (October 1, 2007 to December 31, 2007).
(Unaudited, Billions of yen, millions of U.S. dollars, except per share
amounts)
Third quarter ended December 31
Change
2006 2007 in yen 2007*
------- ------- ------- -------
Sales and operating Y2,607.7 Y2,859.0 +9.6% $25,079
revenue
Operating income 178.9 189.4 +5.8 1,661
Income before income 179.8 288.5 +60.4 2,530
taxes
Equity in net income 43.0 46.9 +9.0 411
of affiliated
companies
Net income 159.9 200.2 +25.2 1,756
Net income per share
of common stock
- Basic Y159.70 Y199.60 +25.0 $1.75
- Diluted 152.49 190.29 +24.8 1.67
Unless otherwise specified, all amounts are presented on the basis of
Generally Accepted Accounting Principles in the U.S. ("U.S. GAAP").
* U.S. dollar amounts have been translated from yen, for convenience
only, at the rate of Y114=U.S.$1, the approximate Tokyo foreign
exchange market rate as of December 31, 2007.
Consolidated Results for the Third Quarter Ended December 31, 2007
------------------------------------------------------------------
- New quarterly records were achieved for consolidated sales and operating
revenue, income before income taxes, equity in net income of affiliated
companies and net income.
- In the Electronics segment, Sony recorded double-digit sales growth
compared with the same quarter of the previous fiscal year
("year-on-year"). After achieving record operating income in the same
quarter of the previous fiscal year, Sony achieved its second highest
Electronics segment profit level in history.
- In the Game segment, the PS3 platform expanded on a worldwide basis with
PS3 hardware sales of 4.90 million units.
Sales and operating revenue ("sales") increased 9.6% year-on-year.
Electronics segment sales increased 10.2% year-on-year due to the increase in
sales of products such as BRAVIA(TM)LCD televisions. In the Game segment, sales
increased 31.2% year-on-year primarily as a result of the contribution to sales
from PLAYSTATION(R)3 ("PS3"). In the Pictures segment, there was a 24.6%
decrease year-on-year in sales primarily due to a decrease in film revenues in
both the theatrical and television markets. In the Financial Services segment,
revenue decreased by 21.4% year-on-year mainly due to deterioration in net
valuation gains from convertible bonds in the general account and in net gains
from investments in the separate account and partially offset by an increase in
insurance premium revenue at Sony Life Insurance Co., Ltd. ("Sony Life").
On a local currency basis, sales increased 9% year-on-year. For references
herein to sales on a local currency basis, see Note.
Operating income increased 5.8% year-on-year.
In the Electronics segment, although an increase in sales and the depreciation
of the yen against the euro impacted positively on operating income, operating
income decreased year-on-year, primarily due to declining prices which exceeded
cost improvements. In the Game segment, operating income was reported as
compared to an operating loss in the same quarter of the previous year primarily
due to a significant decrease in the operating losses of the PS3 business as a
result of successful PS3 hardware cost reductions. In the Pictures segment,
operating income decreased due to the relative underperformance of films
released theatrically in the current quarter as compared to those released in
the same quarter of the previous year, as well as lower revenues from films
released in the television market. In the Financial Services segment, an
operating loss this quarter was mainly attributable to deterioration in net
valuation gains from convertible bonds at Sony Life as a result of the rapid
deterioration in Japanese stock market conditions.
Restructuring charges of Y11.2 billion ($98 million) were recorded as operating
expenses this quarter. (A credit to restructuring charges of Y0.3 billion was
recorded in the same quarter of the previous fiscal year due to the recording of
a gain of Y3.6 billion on the sale of assets associated with restructuring
activities.) Substantially all of these restructuring charges in both periods
relate to the Electronics segment.
Operating income during the current quarter included a gain from the reversal of
a portion of a legal provision as a result of the resolution of a pending legal
matter, while a comparable gain was recorded in the same quarter of the previous
fiscal year attributed to the reversal of a portion of patent-related
provisions.
Income before income taxes was Y288.5 billion ($2,530 million), a year-on-year
increase of 60.4%. This was mainly due to an improvement of Y98.2 billion in
the net effect of other income and expenses. The improvement in the net effect
of other income and expenses was due to the recording of a gain of Y81.0
billion ($711 million) for the change in ownership interest in subsidiaries and
investees as a result of the global initial public offering of shares of Sony
Financial Holdings Inc. ("SFH") in connection with the listing of shares of SFH
on the First Section of the Tokyo Stock Exchange in October 2007, and the
recording of a net foreign exchange gain in the current quarter versus a net
foreign exchange loss recorded in the same quarter of the previous fiscal year.
Income taxes: During the current quarter, Sony recorded Y135.2 billion ($1,186
million) of income taxes resulting in an effective tax rate of 46.9%.
Equity in net income of affiliated companies increased 9.0% year-on-year to
Y46.9 billion ($411 million). Sony recorded equity in net income for Sony
Ericsson Mobile Communications AB ("Sony Ericsson") of Y30.4 billion ($266
million), a decrease of Y3.2 billion year-on-year due to a lower effective tax
rate in the prior year. Sony also recorded equity in net income of Y11.5
billion ($101 million) for SONY BMG MUSIC ENTERTAINMENT ("SONY BMG"), a year-on-
year decrease of Y1.6 billion, primarily due to a benefit from an industry-
related legal settlement recorded in the same quarter of the previous fiscal
year. Equity in net income of Y3.1 billion ($27 million) was recorded for S-LCD
Corporation ("S-LCD"), a joint-venture with Samsung Electronics Co., Ltd., a
year-on-year increase of Y2.5 billion.
Sony did not record any equity gain or loss for Metro-Goldwyn-Mayer Inc. ("MGM")
in the current quarter compared to equity in net loss of Y5.4 billion recorded
in the same quarter of the prior fiscal year. As of March 31, 2007, Sony no
longer has any book basis in MGM and accordingly, no additional losses are
recorded.
As a result of the changes in the items discussed above, net income increased
25.2% year-on-year, to Y200.2 billion ($1,756 million).
Operating Performance Highlights by Business Segment
----------------------------------------------------
"Sales and operating revenue" in each business segment represents sales and
operating revenue recorded before intersegment transactions are eliminated.
"Operating income (loss)" in each business segment represents operating income
(loss) reported before intersegment transactions and unallocated corporate
expenses are eliminated.
Electronics
-----------
(Billions of yen, millions of U.S. dollars)
Third quarter ended December 31
Change in
2006 2007 yen 2007
------- ------- ------- -------
Sales and operating Y1,877.8 Y2,069.4 +10.2% $18,153
revenue
Operating income 179.0 166.5 -7.0 1,461
Unless otherwise specified, all amounts are on a U.S. GAAP basis.
Sales increased by 10.2% year-on-year (a 10% increase on a local currency
basis) to Y2,069.4 billion ($18,153 million), a new quarterly record.
Sales to outside customers increased 14.0% year-on-year. There was an
increase in sales of products including BRAVIA LCD televisions and VAIO
PCs, both of which experienced higher sales in all regions, and
Cyber-shot digital cameras, which recorded favorable sales outside of
Japan. On the other hand, there was a decrease in sales of products
including LCD rear-projection televisions, the market for which is
shrinking.
Operating income of Y166.5 billion ($1,461 million) was reported, a 7.0%
decrease year-on-year. This was primarily the result of declining prices
which exceeded cost improvements, although there was a positive impact
from the increase in sales and the depreciation of the yen against the
euro. With regard to products within the Electronics segment, operating
income increased for VAIO PCs, which experienced higher sales, while the
decreased operating income was mainly attributable to system LSIs, which
saw a decrease in sales of semiconductors for the Game segment, and
BRAVIA LCD televisions, due to unit price declines.
Inventory, as of December 31, 2007, was Y893.3 billion ($7,836 million),
which increased Y41.6 billion, or 4.9%, compared with the level as of
December 31, 2006 and decreased Y113.3 billion, or 11.3%, compared with
the level as of September 30, 2007.
Operating Results for Sony Ericsson Mobile Communications AB
------------------------------------------------------------
The following operating results for Sony Ericsson, which is accounted for
by the equity method as Sony Corporation's ownership percentage is 50%,
are not consolidated in Sony's consolidated financial statements.
However, Sony believes that this disclosure provides additional useful
analytical information to investors regarding operating performance.
(Millions of euro)
Quarter ended December 31
2006 2007 Change in euro
------- ------- -------
Sales and operating revenue EUR3,782 EUR3,771 -0%
Income before income taxes 502 501 -0
Net income 447 373 -17
Mobile phones sold in the current quarter increased 18% year-on-year to 30.8
million units as a result of the strong sales of Walkman(R) and Cyber-shot
phones. However, total sales were relatively unchanged year-on-year at EUR3,771
million. This was due to a decrease in the average unit selling price, in line
with a strategic shift to a greater proportion of lower priced handsets, with
the aim of gaining market share. Income before income taxes for the current
quarter was EUR501 million, relatively unchanged year-on-year, while net income
decreased 17%, reflecting the lower effective tax rate during the same quarter
of the previous year. The lower effective tax rate in the prior year was the
result of the release of valuation allowances on deferred tax assets at certain
subsidiaries. Sony recorded equity in net income of Y30.4 billion ($266
million) for the current quarter.
Game
----
(Billions of yen, millions of U.S. dollars)
Third quarter ended December 31
Change
2006 2007 in yen 2007
------- ------- ------- -------
Sales and operating Y442.8 Y581.2 +31.2% $5,098
revenue
Operating income (54.2) 12.9 - 113
(loss)
Unless otherwise specified, all amounts are on a U.S. GAAP basis.
Sales increased 31.2% year-on-year (a 29% increase on a local currency basis) to
Y581.2 billion ($5,098 million), a new quarterly record.
Hardware: Overall hardware sales increased as a result of the contribution to
sales from PS3, which was released during the second half of the previous fiscal
year, in addition to increased sales of PSP(R) (PlayStation(R)Portable) ("PSP"),
for which a new slimmer, lighter model was released. Sales of PlayStation(R)2
("PS2") decreased year-on-year.
Software: Despite the decrease in PS2 and PSP software sales, overall software
sales increased as a result of an increase in PS3 software sales.
Operating income of Y12.9 billion ($113 million) was reported, compared to an
operating loss of Y54.2 billion reported in the same quarter of the previous
year. This improvement was primarily due to a significant decrease in the
operating losses of the PS3 business as a result of successful PS3 hardware cost
reductions. While profit from the PS2 business decreased year-on-year, due to a
decline in sales of PS2 software, profit from the PSP business increased due to
increased sales of PSP hardware.
Worldwide hardware unit sales (increase/decrease year-on-year):*
- PS2: 5.40 million units (a decrease of 1.35 million units)
- PSP: 5.76 million units (an increase of 1.05 million units)
- PS3: 4.90 million units (an increase of 3.24 million units)
Worldwide software unit sales (increase/decrease year-on-year):*
- PS2: 60.9 million units (a decrease of 17.7 million units)
- PSP: 18.3 million units (a decrease of 3.0 million units)
- PS3: 26.0 million units (an increase of 20.7 million units)
*Beginning with the quarter ended June 30, 2007, the method of reporting
hardware and software unit sales has been changed from production
shipments to recorded sales.
Inventory, as of December 31, 2007, was Y183.0 billion ($1,605 million),
which represents a Y79.7 billion, or 77.2%, increase compared with the
level as of December 31, 2006. This increase was primarily due to the
build-up of finished goods inventory following the worldwide expansion of
the PS3 business. Inventory decreased by Y64.9 billion, or 26.2%,
compared with the level as of September 30, 2007.
Pictures
--------
(Billions of yen, millions of U.S. dollars)
Third quarter ended December 31
Change in
2006 2007 yen 2007
------- ------- ------- -------
Sales and operating Y297.0 Y223.8 -24.6% $1,963
revenue
Operating income 26.2 13.2 -49.7 116
Unless otherwise specified, all amounts are reported on a U.S. GAAP basis. The
results presented above are a yen-translation of the results of Sony Pictures
Entertainment ("SPE"), a U.S.-based operation which aggregates the results of
its worldwide subsidiaries. Management analyzes the results of SPE in U.S.
dollars, so discussion of certain portions of its results are specified as being
on "a U.S. dollar basis."
Sales decreased 24.6% year-on-year (a 21% decrease on a U.S. dollar basis).
Sales decreased primarily due to lower revenues from films released in the
theatrical and television markets. Theatrical revenues decreased because there
were fewer films released during the current quarter and none of these films
were comparable to the highly-successful films Casino Royale and Pursuit of
Happyness released in the same quarter of the prior fiscal year. Television
revenues were lower than the same quarter of the previous year as the previous
year included several large sales of films in the U.S. television market. Home
entertainment revenues in the quarter were consistent with the strong
performance from the same quarter of the previous year, with the current quarter
receiving significant contributions from the home entertainment releases of
Spider-Man 3 and Superbad.
Operating income of Y13.2 billion ($116 million) was reported, a 49.7% decrease
year-on-year. Operating income decreased due to the relative underperformance of
films released theatrically in the current quarter as compared to those released
in the same quarter of the previous year, as well as the lower revenues from
films released in the television market as referenced above. This was partially
offset by lower marketing expenses due to the fewer number of theatrical
releases in the current quarter.
Financial Services
------------------
(Billions of yen, millions of U.S. dollars)
Third quarter ended December 31
Change
2006 2007 in yen 2007
------- ------- ------- -------
Financial service Y172.9 Y135.9 -21.4% $1,192
revenue
Operating income 25.5 (4.2) - (37)
(loss)
In Sony's Financial Services segment, results include SFH, Sony Life, Sony
Assurance Inc., Sony Bank Inc.("Sony Bank") and Sony Finance International Inc.
Unless otherwise specified, all amounts are reported on a U.S. GAAP basis.
Therefore, the results of Sony Life shown below differ from the results that SFH
and Sony Life disclose on a Japanese statutory basis. As a result of the global
initial public offering of shares of SFH, Sony Corporation's ownership
percentage in SFH is 60%. Consolidated results for SFH continue to be
consolidated in Sony's consolidated financial statements.
Financial service revenue decreased 21.4% year-on-year due to a decrease in
revenue at Sony Life. Revenue at Sony Life was Y107.8 billion ($946 million), a
Y39.7 billion or 26.9% decrease year-on-year. Revenues decreased due to
deterioration in net valuation gains from convertible bonds and an impairment
loss on equity securities in the general account and in net gains from
investments in the separate account reflecting a decline in the Japanese stock
market this quarter compared with a rise in the market in the same quarter of
the previous fiscal year. Partially offsetting this was an increase in insurance
premium revenue reflecting an increase in policy amounts in force.
The operating loss of Y4.2 billion ($37 million) was the result of a
deterioration in profitability at Sony Life. The operating loss at Sony Life was
Y6.0 billion ($52 million) compared to operating income of Y25.9 billion in
the same quarter of the previous fiscal year. This decrease was mainly due to
deterioration in net valuation gains from convertible bonds and an impairment
loss on equity securities in the general account which more than offset the
contribution from increased insurance premium revenue at Sony Life.
All Other
---------
(Billions of yen, millions of U.S. dollars)
Third quarter ended December 31
Change
2006 2007 in yen 2007
------- ------- ------- -------
Sales and operating Y94.0 Y96.0 +2.1% $842
revenue
Operating income 12.3 10.3 -16.1 91
Unless otherwise specified, all amounts are on a U.S. GAAP basis.
Sales increased 2.1% year-on-year. Sales within All Other increased mainly due
to the contribution from the sales at the U.S. music publishing company Famous
Music LLC ("Famous Music"), acquired by Sony's U.S.-based music publishing
subsidiary Sony/ATV Music Publishing LLC ("Sony/ATV") and consolidated in the
second quarter of the current fiscal year, and higher fee revenue from broadband
connection services, especially fiber-optic, at So-net Entertainment
Corporation. An increase in trademark royalty income from Sony Ericsson also
contributed to the increase in sales. However, sales at Sony Music Entertainment
(Japan) Inc. ("SMEJ") decreased year-on-year mainly as a result of a decrease in
album and animation DVD sales.
SMEJ's best-selling albums during the current quarter included KISS by
L'Arc-en-Ciel and Dareka no Chijoe by Aqua Timez.
Operating income decreased 16.1% year-on-year. Operating income within All Other
decreased principally as a result of decreased operating income at SMEJ which
were partially offset by the above-mentioned increase in trademark royalty
income from Sony Ericsson.
Operating Results for SONY BMG MUSIC ENTERTAINMENT
--------------------------------------------------
The following operating results for SONY BMG, which is accounted for by the
equity method as Sony Corporation's ownership percentage is 50%, are not
consolidated in Sony's consolidated financial statements. However, Sony believes
that this disclosure provides additional useful analytical information to
investors regarding operating performance.
(Millions of U.S. dollars)
Quarter ended December 31
Change in
2006 2007 U.S. dollars
------- ------- -------
Sales and operating revenue $1,475 $1,471 -0%
Income before income taxes 277 265 -4
Net income 236 208 -12
During the quarter ended December 31, 2007, despite a continuing decline in the
worldwide physical music market, sales revenue at SONY BMG was essentially flat
year-on-year as a result of the favorable sales of several recent releases and
the favorable impact of exchange rates on sales outside of the U.S. Income
before income taxes decreased by 4% year-on-year. Income before income taxes
includes $13 million of restructuring charges, a decrease of $7 million from the
same quarter of the prior year. The decrease in profitability for the quarter
was primarily due to the recording of a benefit from an industry-wide legal
settlement in the same quarter of the previous year. Sony's 50% share of the net
income aggregating Y11.5 billion ($101 million) was recorded as equity in net
income of affiliated companies. Best selling albums during the quarter included
Alicia Keys' As I Am, Celine Dion's Taking Chances, Carrie Underwood's Carnival
Ride and Leona Lewis' Spirit.
Cash Flows
----------
The following charts show Sony's unaudited condensed statements of cash flows
for all segments excluding the Financial Services segment and for the Financial
Services segment alone. These separate condensed presentations are not required
under U.S. GAAP, which is used in Sony's consolidated financial statements.
However, because the Financial Services segment is different in nature from
Sony's other segments, Sony believes that these presentations may be useful in
understanding and analyzing Sony's consolidated financial statements.
Cash Flows - Consolidated (Excluding Financial Services segment)
---------------------------------------------------------------
(Billions of yen, millions of U.S. dollars)
Nine months ended December 31
Cash flows Change
2006 2007 in yen 2007
------- ------- ------- -------
- From (used in) Y(11.6) Y179.5 Y+191.1 $1,574
operating
activities
- From (used in) (374.7) 31.2 +405.8 273
investing activities
- From financing 305.6 84.4 -221.2 740
activities
Cash and cash 585.5 522.9 -62.6 4,587
equivalents at
beginning of the
fiscal year
Cash and cash 510.9 811.2 +300.3 7,115
equivalents at
December 31
Operating Activities: During the nine months ended December 31, 2007, although
there was an increase in notes and accounts receivable, trade, principally
within the Electronics and Game segments, net cash was generated due to the
recording of net income primarily from the contribution of the Electronics
segment.
Investing Activities: During the nine months ended December 31, 2007, although
cash was used for the purchase of semiconductor fabrication equipment and the
acquisition of U.S. music publishing company Famous Music by Sony/ATV, net cash
was generated from the sale of SFH shares as well as the sale of a portion of
the site of Sony's former headquarters.
As a result, total net cash generated by operating activities and net proceeds
from investing activities during the nine months ended December 31, 2007 was
Y210.6 billion ($1,848 million).
Financing Activities: During the nine months ended December 31, 2007, financing
was carried out principally through the issuance of commercial paper. These
sources were partially offset by cash used to redeem straight bonds and for
dividend payments.
Cash and Cash Equivalents: As a result of the above factors, and taking into
account the effect of foreign currency exchange rate fluctuations, the total
balance of cash and cash equivalents was Y811.2 billion ($7,115 million) at
December 31, 2007, an increase of Y288.3 billion compared to March 31, 2007 and
an increase of Y300.3 billion compared to December 31, 2006.
Cash Flows - Financial Services segment
---------------------------------------
(Billions of yen, millions of U.S. dollars)
Nine months ended December 31
Cash flows 2006 2007 Change 2007
in yen
------- ------- ------- -------
- From operating Y170.3 Y164.1 Y-6.2 $1,439
activities
- From (used in) (199.0) (563.2) -364.2 (4,940)
investing activities
- From financing 133.6 334.8 +201.2 2,937
activities
Cash and cash 117.6 277.0 +159.4 2,430
equivalents at
beginning of the
fiscal year
Cash and cash 222.4 212.7 -9.7 1,866
equivalents at
December 31
Operating Activities: Net cash provided by operating activities was generated
due to an increase in revenue from insurance premiums, primarily reflecting an
increase in policy amounts in force at Sony Life.
Investing Activities: Payments for investments and advances mainly carried out
at Sony Life and Sony Bank, where operations are expanding, exceeded proceeds
from maturities of marketable securities, sales of securities investments and
collections of advances.
Financing Activities: In addition to an increase in policyholders' accounts at
Sony Life, there was an increase in deposits from customers at Sony Bank.
Cash and Cash Equivalents: As a result of the above, the balance of cash and
cash equivalents was Y212.7 billion ($1,866 million) at December 31, 2007, a
decrease of Y64.3 billion compared to March 31, 2007 and a decrease of Y9.7
billion compared to December 31, 2006.
Note
----
During the quarter ended December 31, 2007, the average value of the yen was
Y112.2 against the U.S. dollar and Y162.4 against the euro, which was 4.1%
higher against the U.S. dollar and 7.4% lower against the euro, compared with
the average rates for the same quarter of the previous fiscal year. Sales on a
local currency basis described herein reflect sales obtained by applying the
yen's monthly average exchange rate in the same quarter of the previous fiscal
year to local currency-denominated monthly sales in the current quarter. Sales
on a local currency basis are not reflected in Sony's consolidated financial
statements and are not measures conforming with U.S. GAAP. In addition, Sony
does not believe that these measures are a substitute for U.S. GAAP measures.
However, Sony believes that disclosing sales information on a local currency
basis provide additional useful analytical information to investors regarding
operating performance.
Outlook for the Fiscal Year ending March 31, 2008
-------------------------------------------------
Sony's consolidated results forecast for the fiscal year ending March 31, 2008,
as announced on October 25, 2007, has been revised as per the table below:
(Billions of yen)
Change from
March 31,
Change from 2007
Current October October Actual
Forecast Forecast Forecast Results
------- ------- ------- -------
Sales and operating Y8,980 0% Y8,980 +8%
revenue
Operating income 410 -9 450 +471
(Restructuring charges
recorded as operating 45 0 45 +16)
expenses
Income before income 490 -2 500 +380
taxes
Equity in net income of
affiliated companies 100 +11 90 +27
Net income 340 +3 330 +169
Assumed foreign currency exchange rates for the fourth quarter: approximately
Y105 to the U.S. dollar and approximately Y155 to the euro. (Assumed foreign
exchange rates for the second half of the fiscal year at the time of the October
forecast: approximately Y115 to the U.S. dollar and approximately Y160 to the
euro.)
The principal reasons for the revisions are as follows:
1. Although consolidated operating income for the third quarter exceeded
our October forecast, primarily in the Electronics segment, we revised
our consolidated operating income forecast for the following reasons
attributable to the deterioration in the external environment:
- Assumed foreign exchange rates for the fourth quarter have been
changed to reflect an appreciating yen compared to the October
forecast;
- The net valuation gains primarily from convertible bonds deteriorated
in the third quarter compared to the October forecast at Sony Life
due to a decline in the Japanese stock market; and
- The amount to be recorded in the fourth quarter for gains on the sale
of assets is expected to be lower than the October forecast as a
result of deterioration in the financial markets.
2. The forecast for income before income taxes was revised, in addition to
the above factors, due to an expected increase in the gain from foreign
exchange contracts compared to the October forecast as the yen has been
appreciating more than anticipated. Also, in connection with the global
initial public offering of shares of SFH, the exercise of the greenshoe
option, not included in the October forecast, occurred after the listing
thereby resulting in a larger gain than originally projected.
3. The forecast for equity in net income of affiliated companies was revised
due to better than expected results at Sony Ericsson compared to the
October forecast.
Note to the above Forecast
--------------------------
The above forecasts are based on the market prices of the portfolio of
our Financial Services segment as of December 31, 2007. Sony cautions
that a number of risks and uncertainties, including market volatility and
fluctuations such as the recent drop in worldwide equity markets
experienced in January 2008, could cause actual results for the Financial
Services segment to differ materially from the forecasts. In addition,
even if this volatility continues through March 31, 2008, the impact on
this portfolio may not match the changes in valuation realized in the
Japanese equity markets since there may be differences between prices of
individual securities and movements in market indices like the TOPIX.
According to a hypothetical sensitivity analysis based on our portfolio
(primarily corporate investment trusts held for trading purposes and
convertible bonds within the assets of Sony Life's general account) as of
December 31, 2007, a fluctuation of 10 percentage points in the TOPIX
could create an impact on Sony's consolidated operating income of
approximately Y16 billion. Actual profit and loss may differ materially
from the above reference analysis because the change in the prices of
securities being held by Sony Life may not match the change in the price
of the TOPIX and the holdings within the portfolio may change as a result
of future operations such as trading or the exercise of convertible
bonds. In addition, the possibility of valuation losses in equity
securities (excluding equity securities included in the corporate
investment trust for trading purposes) being held is not included in the
analysis above.
Our forecast for capital expenditures has been reduced by Y30 billion
compared to the October forecast mainly for semiconductors. Our forecast
for depreciation and amortization, and research and development expenses,
as per the table below, is unchanged from the October forecast.
(Billions of yen)
Change from
March 31,
Change from 2007
Current October October Actual
Forecast Forecast Forecast Results
------- ------- ------- -------
Capital expenditures Y410 -7% Y440 -1%
(additions to fixed
assets) *
Depreciation and 430 0 430 +7
amortization**
(Depreciation expenses 350 0 350 +11)
for tangible assets
Research and development 550 0 550 +1
expenses
* Investments in S-LCD are not included within the forecast for capital
expenditures.
** The forecast for depreciation and amortization includes amortization
of intangible assets and amortization of deferred insurance acquisition
costs.
Cautionary Statement
--------------------
Statements made in this release with respect to Sony's current plans, estimates,
strategies and beliefs and other statements that are not historical facts are
forward-looking statements about the future performance of Sony. Forward-looking
statements include, but are not limited to, those statements using words such as
"believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate,"
"project," "anticipate," "aim," "may" or "might" and words of similar meaning in
connection with a discussion of future operations, financial performance, events
or conditions. From time to time, oral or written forward-looking statements may
also be included in other materials released to the public. These statements are
based on management's assumptions and beliefs in light of the information
currently available to it. Sony cautions you that a number of important risks
and uncertainties could cause actual results to differ materially from those
discussed in the forward-looking statements, and therefore you should not place
undue reliance on them. You also should not rely on any obligation of Sony to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. Sony disclaims any such obligation.
Risks and uncertainties that might affect Sony include, but are not limited to
(i) the global economic environment in which Sony operates, as well as the
economic conditions in Sony's markets, particularly levels of consumer spending;
(ii) exchange rates, particularly between the yen and the U.S. dollar, the euro
and other currencies in which Sony makes significant sales or in which Sony's
assets and liabilities are denominated; (iii) 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 newly introduced platforms
within the Game segment, which are offered in highly competitive markets
characterized by continual new product introductions, rapid development in
technology and subjective and changing consumer preferences (particularly in the
Electronics, Game and Pictures segments, and the music business); (iv) Sony's
ability and timing to recoup large-scale investments required for technology
development and increasing production capacity; (v) Sony's ability to implement
successfully personnel reduction and other business reorganization activities in
its Electronics segment; (vi) Sony's ability to implement successfully its
network strategy for its Electronics, Game and Pictures segments, and All Other,
including the music business, and to develop and implement successful sales and
distribution strategies in its Pictures segment and the music business in light
of the Internet and other technological developments; (vii) Sony's continued
ability to devote sufficient resources to research and development and, with
respect to capital expenditures, to correctly prioritize investments
(particularly in the Electronics segment); (viii) Sony's ability to maintain
product quality (particularly in the Electronics and Game segments); (ix) the
success of Sony's joint ventures and alliances; (x) the outcome of pending legal
and/or regulatory proceedings; (xi) shifts in customer demand for financial
services such as life insurance and Sony's ability to conduct successful asset
liability management in the Financial Services segment; and (xii) the impact of
unfavorable conditions or developments (including market fluctuations or
volatility) in the Japanese equity markets on the operating income of the
Financial Services segment. Risks and uncertainties also include the impact of
any future events with material adverse impacts.
(Unaudited)Consolidated Financial Statements
Consolidated Balance Sheets
--------------------------------------------
(Millions of yen, millions of U.S. dollars)
March 31
December 31 2007
------------------------------------------------
ASSETS 2006 2007 Change from 2006 2007
------ ------ ------ ---- ------ ------
Current assets:
Cash and cash Y733,323 Y1,023,873 Y+290,550 +39.6% $8,981 Y799,899
equivalents
Marketable 488,585 481,513 -7,072 -1.4 4,224 493,315
securities
Notes and 1,811,216 1,746,517 -64,699 -3.6 15,320 1,490,452
accounts
receivable,
trade
Allowance for (112,641) (131,074) -18,433 +16.4 (1,150) (120,675)
doubtful
accounts and
sales returns
Inventories 966,205 1,101,429 +135,224 +14.0 9,662 940,875
Deferred income 247,536 268,243 +20,707 +8.4 2,353 243,782
taxes
Prepaid expenses 705,928 1,064,855 +358,927 +50.8 9,341 699,075
and other
current assets
------ ------ ------ ------ ------
4,840,152 5,555,356 +715,204 +14.8 48,731 4,546,723
Film costs 337,616 329,920 -7,696 -2.3 2,894 308,694
Investments and
advances:
Affiliated 445,544 450,682 +5,138 +1.2 3,953 448,169
companies
Securities 3,382,862 3,776,523 +393,661 +11.6 33,128 3,440,567
investments and
other
------ ------ ------ ------ ------
3,828,406 4,227,205 +398,799 +10.4 37,081 3,888,736
Property, plant
and equipment:
Land 173,262 169,565 -3,697 -2.1 1,487 167,493
Buildings 1,002,042 1,030,699 +28,657 +2.9 9,041 978,680
Machinery and 2,477,664 2,698,181 +220,517 +8.9 23,668 2,479,308
equipment
Construction in 61,754 58,887 -2,867 -4.6 517 64,855
progress
Less- (2,262,609) (2,524,084) -261,475 +11.6 (22,141)(2,268,805)
Accumulated
depreciation
------ ------ ------ ------ ------
1,452,113 1,433,248 -18,865 -1.3 12,572 1,421,531
Other assets:
Intangibles, net 215,145 269,223 +54,078 +25.1 2,362 233,255
Goodwill 301,643 322,600 +20,957 +6.9 2,830 304,669
Deferred 394,527 399,591 +5,064 +1.3 3,505 394,117
insurance
acquisition
costs
Deferred income 156,032 229,418 +73,386 +47.0 2,012 216,997
taxes
Other 415,227 449,952 +34,725 +8.4 3,947 401,640
------ ------ ------ ------ ------
1,482,574 1,670,784 +188,210 +12.7 14,656 1,550,678
------ ------ ------ ------ ------
Y11,940,861 Y13,216,513Y +1,275,652 +10.7% $115,934Y11,716,362
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term Y316,203 Y181,667 Y-134,536 -42.5% $ 1,594 Y52,291
borrowings
Current portion 45,304 294,393 +249,089 +549.8 2,582 43,170
of long-term
debt
Notes and 1,174,004 1,249,761 +75,757 +6.5 10,963 1,179,694
accounts
payable, trade
Accounts 971,932 995,047 +23,115 +2.4 8,728 968,757
payable, other
and accrued
expenses
Accrued income 54,484 206,952 +152,468 +279.8 1,815 70,286
and other taxes
Deposits from 717,528 980,604 +263,076 +36.7 8,602 752,367
customers in the
banking business
Other 480,118 570,556 +90,438 +18.8 5,005 485,287
------ ------ ------ ------ ------
3,759,573 4,478,980 +719,407 +19.1 39,289 3,551,852
Long-term
liabilities:
Long-term debt 1,003,159 737,534 -265,625 -26.5 6,470 1,001,005
Accrued pension 170,501 179,352 +8,851 +5.2 1,573 173,474
and severance
costs
Deferred income 254,331 308,595 +54,264 +21.3 2,707 261,102
taxes
Future insurance2,960,559 3,245,753 +285,194 +9.6 28,472 3,037,666
policy benefits
and other
Other 290,970 267,094 -23,876 -8.2 2,342 281,589
------ ------ ------ ------ ------
4,679,520 4,738,328 +58,808 +1.3 41,564 4,754,836
Minority interest 41,967 296,823 +254,856 +607.3 2,604 38,970
in consolidated
subsidiaries
Stockholders'
equity:
Capital stock 625,305 630,381 +5,076 +0.8 5,530 626,907
Additional 1,140,639 1,149,625 +8,986 +0.8 10,084 1,143,423
paid-in capital
Retained 1,780,228 2,042,874 +262,646 +14.8 17,920 1,719,506
earnings
Accumulated (82,928) (115,825) -32,897 +39.7 (1,016) (115,493)
other
comprehensive
income
Treasury stock, (3,443) (4,673) -1,230 +35.7 (41) (3,639)
at cost
------ ------ ------ ------ ------
3,459,801 3,702,382 +242,581 +7.0 32,477 3,370,704
------ ------ ------ ------ ------
Y11,940,861 Y13,216,513 Y+1,275,652 +10.7% $115,934Y11,716,362
Consolidated Statements of Income
---------------------------------
(Millions of yen, millions of U.S. dollars, except per share amounts)
Fiscal
year ended
Third quarter ended December 31 March 31
--------------------------------------------------
Sales and operating 2006 2007 Change 2007 2007
revenue: from 2006
------- ------ -------- ----- ------ ------
Net sales Y2,413,485 Y2,698,265 Y+284,780 +11.8 % $ 23,669 Y7,567,359
Financial 167,060 128,927 -38,133 -22.8 1,131 624,282
service
revenue
Other 27,130 31,838 +4,708 +17.4 279 104,054
operating
revenue
------- ------ -------- ------ ------
2,607,675 2,859,030 +251,355 +9.6 25,079 8,295,695
Costs and
expenses:
Cost of sales 1,820,172 2,034,540 +214,368 +11.8 17,847 5,889,601
Selling, 470,346 501,044 +30,698 +6.5 4,395 1,788,427
general and
administrative
Financial 141,621 130,978 -10,643 -7.5 1,149 540,097
service
expenses
(Gain) loss on (3,371) 3,110 +6,481 - 27 5,820
sale, disposal
or impairment
of assets, net
------- ------ -------- ------ ------
2,428,768 2,669,672 +240,904 +9.9 23,418 8,223,945
Operating income 178,907 189,358 +10,451 +5.8 1,661 71,750
Other income:
Interest and 5,914 11,956 +6,042 +102.2 105 28,240
dividends
Foreign - 11,085 +11,085 - 97 -
exchange gain,
net
Gain on sale 4,867 287 -4,580 -94.1 3 14,695
of securities
investments, net
Gain on change 11,377 81,038 +69,661 +612.3 711 31,509
in interest in
subsidiaries
and equity
investees
Other 2,533 3,123 +590 +23.3 27 20,738
------- ------ -------- ------ ------
24,691 107,489 +82,798 +335.3 943 95,182
Other expenses:
Interest 9,064 4,194 -4,870 -53.7 37 27,278
Loss on 294 249 -45 -15.3 2 1,308
devaluation of
securities
investments
Foreign 10,309 - -10,309 - - 18,835
exchange loss,
net
Other 4,116 3,936 -180 -4.4 35 17,474
------- ------ -------- ------ ------
23,783 8,379 -15,404 -64.8 74 64,895
Income before 179,815 288,468 +108,653 +60.4 2,530 102,037
income taxes
Income taxes 61,530 135,244 +73,714 +119.8 1,186 53,888
------- ------ -------- ------ -----
Income before 118,285 153,224 +34,939 +29.5 1,344 48,149
minority
interest and
equity in net
income of
affiliated
companies
Minority 1,369 (136) -1,505 - (1) 475
interest in
income (loss)
of consolidated
subsidiaries
Equity in net 43,001 46,861 +3,860 +9.0 411 78,654
income of
affiliated
companies
------- ------ -------- ------ ------
Net income Y159,917 Y200,221 Y+40,304 +25.2 $1,756 Y126,328
------- ------ -------- ------ ------
Per share data:
Common stock
Net income
- Basic Y159.70 Y199.60 Y+39.90 +25.0 $1.75 Y126.15
- Diluted 152.49 190.29 +37.80 +24.8 1.67 120.29
(Millions of yen, millions of U.S. dollars, except per share amounts)
Fiscal
year ended
Nine months ended December 31 March 31
--------------------------------------------------
2006 2007 Change from 2006 2007 2007
------- ------ -------- ----- ------ ------
Sales and operating
revenue:
Net sales Y5,680,568 Y6,370,349 Y+689,781 +12.1% $55,880 Y7,567,359
Financial 447,798 457,088 +9,290 +2.1 4,010 624,282
service
revenue
Other 77,724 91,140 +13,416 +17.3 799 104,054
operating
revenue
------- ------ -------- ------ ------
6,206,090 6,918,577 +712,487 +11.5 60,689 8,295,695
Costs and
expenses:
Cost of sales 4,318,663 4,867,649 +548,986 +12.7 42,699 5,889,601
Selling, 1,303,483 1,315,381 +11,898 +0.9 11,538 1,788,427
general and
administrative
Financial 393,195 402,096 +8,901 +2.3 3,527 540,097
service
expenses
(Gain) loss on 5,627 (45,700) -51,327 - (401) 5,820
sale, disposal or
impairment of
assets, net
------- ------ -------- ------ ------
6,020,968 6,539,426 +518,458 +8.6 57,363 8,223,945
Operating
income 185,122 379,151 +194,029 +104.8 3,326 71,750
Other income:
Interest and 17,856 26,651 +8,795 +49.3 234 28,240
dividends
Foreign - 73 +73 - 0 -
exchange gain,
net
Gain on sale 9,319 1,629 -7,690 -82.5 14 14,695
of securities
investments,
net
Gain on change 31,452 81,052 +49,600 +157.7 711 31,509
in interest in
subsidiaries and
equity investees
Other 12,964 14,103 +1,139 +8.8 124 20,738
------- ------ -------- ------ ------
71,591 123,508 +51,917 +72.5 1,083 95,182
Other expenses:
Interest 20,449 17,731 -2,718 -13.3 155 27,278
Loss on 1,044 9,654 +8,610 +824.7 85 1,308
devaluation of
securities
investments
Foreign 13,803 - -13,803 - - 18,835
exchange loss,
net
Other 13,696 15,124 +1,428 +10.4 133 17,474
------- ------ -------- ------ ------
48,992 42,509 -6,483 -13.2 373 64,895
Income before 207,721 460,150 +252,429 +121.5 4,036 102,037
income taxes
------- ------ -------- ------ ------
Income taxes 78,746 209,773 +131,027 +166.4 1,840 53,888
Income before 128,975 250,377 +121,402 +94.1 2,196 48,149
minority
interest and equity
in net income of
affiliated companies
Minority interest 1,431 (42) -1,473 - (0) 475
in income (loss)
of consolidated
subsidiaries
Equity in net 66,344 89,972 +23,628 +35.6 790 78,654
income of
affiliated
companies
------- ------ -------- ------ ------
Net income Y193,888 Y340,391 Y+146,503 +75.6 $2,986 Y126,328
------- ------ -------- ------ ------
Per share data:
Common stock
Net income
- Basic Y193.64 Y339.42 Y+145.78 +75.3 $2.98 Y126.15
- Diluted 184.81 323.42 +138.61 +75.0 2.84 120.29
Consolidated Statements of Cash Flows
-------------------------------------
(Millions of yen, millions of U.S. dollars)
Fiscal
year ended
Nine months ended December 31 March 31
---------------------------------------
2006 2007 2007 2007
------ ------ ------ ------
Cash flows from
operating activities:
Net income Y193,888 Y340,391 $2,986 Y126,328
Adjustments to
reconcile net
income to net
cash provided by
operating
activities:
Depreciation and 284,854 314,239 2,756 400,009
amortization,
including
amortization of
deferred insurance
acquisition costs
Amortization 261,327 243,390 2,135 368,382
of film costs
Stock-based 2,587 2,935 26 3,838
compensation
expense
Accrual for (8,109) (9,259) (81) (22,759)
pension and
severance
costs, less
payments
(Gain) loss on 5,627 (45,700) (401) 5,820
sale, disposal
or impairment
of assets, net
Gain on sale (8,275) 8,025 71 (13,387)
or loss on
devaluation of
securities
investments, net
(Gain) loss on (10,756) 14,418 126 (11,857)
revaluation of
marketable
securities held in
the financial
service business
for trading
purpose, net
Gain on change (31,452) (81,052) (711) (31,509)
in interest in
subsidiaries
and equity
investees
Deferred 26,418 4,713 41 (13,193)
income taxes
Equity in net (64,226) (43,526) (382) (68,179)
income of
affiliated
companies, net
of dividends
Changes in
assets and
liabilities:
Increase in (664,338) (237,269) (2,081) (357,891)
notes and
accounts
receivable,
trade
Increase in (139,796) (152,233) (1,335) (119,202)
inventories
Increase in (236,775) (275,536) (2,417) (320,079)
film costs
Increase in 351,645 67,812 595 362,079
notes and
accounts
payable, trade
Increase (20,579) 149,467 1,311 (14,396)
(decrease) in
accrued income
and other
taxes
Increase in 127,210 137,348 1,205 172,498
future
insurance
policy
benefits and
other
Increase in (46,133) (48,716) (427) (61,563)
deferred
insurance
acquisition
costs
(Increase) decrease 16,969 (47,669) (418) 31,732
in marketable
securities held in
the financial
service
business for
trading purpose
Increase in (82,246) (68,634) (603) (35,133)
other current
assets
Increase in 120,176 88,437 775 73,222
other current
liabilities
Other 78,809 (22,974) (201) 86,268
------- ------- ------- -------
Net cash provided 156,825 338,607 2,970 561,028
by operating
activities
------- ------- ------- -------
Cash flows from
investing activities:
Payments for (410,217) (337,055) (2,957) (527,515)
purchases of
fixed assets
Proceeds from 41,580 77,029 676 87,319
sales of fixed
assets
Payments for (651,961) (1,367,996) (12,000) (914,754)
investments and
advances by
financial
service business
Payments for (92,163) (95,496) (838) (100,152)
investments and
advances (other
than financial
service business)
Proceeds from 488,153 831,127 7,291 679,772
maturities of
marketable
securities, sales of
securities
investments and
collections of
advances by financial
service business
Proceeds from 15,415 45,509 399 22,828
maturities of
marketable
securities, sales of
securities
investments and
collections of
advances (other than
financial service
business)
Proceeds from 43,157 306,208 2,685 43,157
sales of
subsidiaries'
and equity
investees'
stocks
Other (1,349) 4,768 43 (6,085)
------- ------- ------- -------
Net cash used in (567,385) (535,906) (4,701) (715,430)
investing activities
------- ------- ------- -------
Cash flows from
financing activities:
Proceeds from 267,085 26,780 235 270,780
issuance of
long-term debt
Payments of (179,492) (32,762) (287) (182,374)
long-term debt
Increase in 256,577 112,953 991 6,096
short-term
borrowings, net
Increase in 206,420 297,969 2,614 273,435
deposits from
customers in the
financial
service
business, net
Increase (92,700) 16,500 145 (100,700)
(decrease) in
call money and
bills sold in
the banking
business, net
Dividends paid (25,085) (25,133) (220) (25,052)
Proceeds from 2,362 7,093 62 5,566
issuance of
shares under
stock-based
compensation
plans
Proceeds from - 28,800 253 2,217
issuance of
stocks by
subsidiaries
Other (446) (4,226) (39) (2,065)
------- ------- ------- -------
Net cash provided by 434,721 427,974 3,754 247,903
financing activities
------- ------- ------- -------
Effect of exchange rate 6,064 (6,701) (59) 3,300
changes on cash and
cash equivalents
------- ------- ------- -------
Net increase in 30,225 223,974 1,964 96,801
cash and cash
equivalents
Cash and cash 703,098 799,899 7,017 703,098
equivalents at
beginning of the fiscal
year
------- ------- ------- -------
Cash and cash Y733,323 Y1,023,873 $8,981 Y799,899
equivalents at the
end of the period
------- ------- ------- -------
(Notes)
1. U.S. dollar amounts have been translated from yen, for convenience only, at
the rate of Y114 = U.S. $1, the approximate Tokyo foreign exchange market
rate as of December 31, 2007.
2. As of December 31, 2007, Sony had 994 consolidated subsidiaries (including
variable interest entities). It has applied the equity accounting method
for 60 affiliated companies.
3. Weighted-average number of outstanding shares used for computation of
earnings per share of common stock are as follows. The dilutive effect in
the weighted-average number of outstanding shares mainly resulted from
convertible bonds.
Weighted-average number of
outstanding shares (Thousands of shares)
-------------------------- Third quarter ended December 31
2006 2007
Net income ------ ------
- Basic 1,001,333 1,003,126
- Diluted 1,048,692 1,052,176
Weighted-average number of
outstanding shares (Thousands of shares)
-------------------------- Nine months ended December 31
2006 2007
Net income ------ ------
- Basic 1,001,276 1,002,868
- Diluted 1,049,130 1,052,471
4. Sony's comprehensive income is comprised of net income and other
comprehensive income. Other comprehensive income includes changes in
unrealized gains or losses on securities, unrealized gains or losses on
derivative instruments, minimum pension liabilities adjustments, pension
liabilities adjustments and foreign currency translation adjustments. Net
income, other comprehensive income (loss) and comprehensive income for the
third quarter and the nine months of the fiscal year ended March 31, 2007
and for the third quarter and the nine months of the fiscal year ending
March 31, 2008 were as follows:
(Millions of yen, millions of U.S. dollars)
Third quarter ended Nine months ended
December 31 December 31
-------------------------- -------------------------
2006 2007 2007 2006 2007 2007
------ ------ ------ ------ ------ ------
Net income Y159,917 Y200,221 $1,756 Y193,888 Y340,391 $2,986
Other
comprehensive
Income (loss):
Unrealized 3,515 (37,021) (325) (18,174) (30,353) (266)
gains
(losses) on
securities
Unrealized 947 27,579 242 (79) 28,000 246
gains
(losses) on
derivative
instruments
Minimum (1,906) - - (4,553) - -
pension
liabilities
adjustments
Pension - 993 9 - 1,537 13
liabilities
adjustments
Foreign 59,138 (834) (7) 96,315 484 4
currency
translation
adjustments
------ ------ ------ ------ ------ ------
61,694 (9,283) (81) 73,509 (332) (3)
------ ------ ------ ------ ------ ------
Comprehensive
income Y221,611 Y190,938 $1,675 Y267,397 Y340,059 $2,983
------ ------ ------ ------ ------ ------
5. In September 2005, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants issued the Statement of
Position ("SOP") 05-1, "Accounting by Insurance Enterprises for Deferred
Acquisition Costs in Connection with Modifications or Exchanges of
Insurance Contracts." SOP 05-1 provides guidance on accounting for deferred
acquisition costs on internal replacements of insurance and investment
contracts other than those specifically described in FAS No. 97,
"Accounting and Reporting by Insurance Enterprises for Certain
Long-Duration Contracts and for Realized Gains and Losses from the Sales of
Investments." Sony adopted SOP 05-1 on April 1, 2007. The adoption of SOP
05-1 did not have a material impact on Sony's results of operations and
financial position.
6. In March 2006, the Financial Accounting Standards Board ("FASB") issued FAS
No. 156, "Accounting for Servicing of Financial Assets - an amendment of
FASB Statement No. 140." This statement amends FAS No. 140, "Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities" with respect to the accounting for separately recognized
servicing assets and servicing liabilities. Sony adopted FAS No. 156 on
April 1, 2007. The adoption of FAS No. 156 did not have a material impact
on Sony's results of operations and financial position.
7. In June 2006, the FASB issued FASB Interpretation ("FIN") No. 48,
"Accounting for Uncertainty in Income Taxes, an interpretation of FASB
Statement No. 109." FIN No. 48 clarifies the accounting for uncertainty in
income taxes recognized in an enterprise's financial statements in
accordance with FAS No. 109, "Accounting for Income Taxes." FIN No. 48
prescribes a minimum recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken
or expected to be taken in a tax return. FIN No. 48 also provides guidance
on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure, and transition. Sony adopted FIN No. 48
effective April 1, 2007. As a result of the adoption of FIN No. 48, a
charge against beginning retained earnings totaling Y4,452 million ($36
million) was recorded. As of April 1, 2007, total unrecognized tax benefits
were Y223,857 million ($1,820 million). If Sony were to prevail on all
unrecognized tax benefits recorded, Y129,632 million ($1,054 million) of
the Y223,857 million would reduce the effective tax rate. Given the
uncertainty regarding when tax authorities will complete their
examinations, the items subject to their examinations and the possible
outcomes of their examinations, an accurate estimate of significant
increases or decreases that may occur within the next twelve months cannot
be made at this time. Based on the items of which Sony is aware, any change
to the unrecognized tax benefits that, if recognized, would affect the
effective tax rate is not expected to be significant. Interest associated
with a liability for unrecognized tax benefits is included in interest
expense. At April 1, 2007, Sony had an accrual of Y7,899 million ($64
million) related to interest recorded as accrued expenses. Penalties
associated with income taxes are recorded within income tax expense. At
April 1, 2007, Sony had an accrual of Y3,696 million ($30 million) related
to penalties recorded as a component of other non-current liabilities. For
the third quarter and the nine months ended December 31, 2007, there were
no material changes to the tax assets and liabilities resulting in a
significant change to the effective income tax rate for the respective
periods attributed to changes in Sony's uncertain tax positions under FIN
No. 48. Sony is subject to income tax examinations for Japan and various
foreign tax jurisdictions for tax years from 1998 through 2007.
8. In June 2006, the Emerging Issues Task Force ("EITF") issued EITF Issue No.
06-3, "How Taxes Collected from Customers and Remitted to Governmental
Authorities Should be Presented in the Income Statement." EITF Issue No.
06-3 requires disclosure of the accounting policy for any tax assessed by a
governmental authority that is imposed concurrently on a specific
revenue-producing transaction between a seller and a customer. EITF Issue
No. 06-3 should be applied to financial reports for interim and annual
reporting periods beginning after December 15, 2006. Sony adopted EITF
Issue No. 06-3 on April 1, 2007. The adoption of EITF Issue No. 06-3 did
not have a material impact on Sony's results of operations and financial
position.
Other Consolidated Financial Data
---------------------------------
Millions of yen, millions of U.S. dollars)
Third quarter ended December 31
2006 2007 Change 2007
------ ------ ------ ------
Capital expenditures (additions to Y87,965 Y67,066 -23.8% $588
property, plant and equipment)
Depreciation and amortization 99,935 109,663 +9.7 962
expenses*
(Depreciation expenses for (80,477) (84,037) +4.4 (737)
tangible assets)
Research and development expenses 133,522 125,474 -6.0 1,101
(Millions of yen millions of U.S.dollars)
Nine months ended December 31
2006 2007 Change 2007
------ ------ ------ ------
Capital expenditures (additions Y312,045 Y237,864 -23.8% $2,087
to property, plant and equipment)
Depreciation and amortization 284,854 314,239 +10.3 2,756
expenses*
(Depreciation expenses for (225,969) (242,624) +7.4 (2,128)
tangible assets)
Research and development expenses 396,377 383,198 -3.3 3,361
* Including amortization expenses for intangible assets and for deferred
insurance acquisition costs
Business Segment Information
----------------------------
(Millions of yen, millions of U.S. dollars)
Sales and Third quarter ended December 31
operating revenue 2006 2007 Change 2007
--------------- ------ ------ ------ ------
Electronics
Customers Y1,643,673 Y1,873,231 +14.0 % $16,432
Intersegment 234,085 196,202 1,721
--------------- ------ ------ ------
Total 1,877,758 2,069,433 +10.2 18,153
Game
Customers 424,331 555,296 +30.9 4,871
Intersegment 18,468 25,859 227
--------------- ------ ------ ------
Total 442,799 581,155 +31.2 5,098
Pictures
Customers 296,955 223,622 -24.7 1,961
Intersegment - 184 2
--------------- ------ ------ ------
Total 296,955 223,806 -24.6 1,963
Financial Services
Customers 167,060 128,927 -22.8 1,131
Intersegment 5,850 6,969 61
--------------- ------ ------ ------
Total 172,910 135,896 -21.4 1,192
All Other
Customers 75,656 77,954 +3.0 684
Intersegment 18,369 18,059 158
--------------- ------ ------ ------
Total 94,025 96,013 +2.1 842
Elimination (276,772) (247,273) - (2,169)
--------------- ------ ------ ------
Consolidated total Y2,607,675 Y2,859,030 +9.6 % $25,079
Electronics intersegment amounts primarily consist of transactions
with the Game segment, Pictures segment and All Other.
All Other intersegment amounts primarily consist of transactions with the
Electronics and Game segments.
Operating income 2006 2007 Change 2007
(loss)
--------------- ------ ------ ------ ------
Electronics Y179,035 Y166,546 -7.0 % $1,461
Game (54,168) 12,922 - 113
Pictures 26,238 13,210 -49.7 116
Financial Services 25,470 (4,169) - (37)
All Other 12,327 10,341 -16.1 91
--------------- ------ ------ ------
Total 188,902 198,850 +5.3 1,744
Corporate and (9,995) (9,492) - (83)
elimination
--------------- ------ ------ ------
Consolidated total Y178,907 Y189,358 +5.8 % $1,661
(Millions of yen, millions of U.S. dollars)
Sales and operating Nine months ended December 31
revenue 2006 2007 Change 2007
--------------- ------ ------ ------ ------
Electronics
Customers Y4,161,339 Y4,626,053 +11.2 % $40,579
Intersegment 375,701 535,769 4,700
--------------- ------ ------ ------
Total 4,537,040 5,161,822 +13.8 45,279
Game
Customers 703,928 968,437 +37.6 8,495
Intersegment 31,680 52,724 463
--------------- ------ ------ ------
Total 735,608 1,021,161 +38.8 8,958
Pictures
Customers 679,859 643,840 -5.3 5,648
Intersegment - 960 8
--------------- ------ ------ ------
Total 679,859 644,800 -5.2 5,656
Financial Services
Customers 447,798 457,088 +2.1 4,010
Intersegment 17,314 21,152 185
--------------- ------ ------ ------
Total 465,112 478,240 +2.8 4,195
All Other
Customers 213,166 223,159 +4.7 1,957
Intersegment 50,484 52,228 459
--------------- ------ ------ ------
Total 263,650 275,387 +4.5 2,416
Elimination (475,179) (662,833) - (5,815)
--------------- ------ ------ ------
Consolidated total Y6,206,090 Y6,918,577 +11.5 % $60,689
Electronics intersegment amounts primarily consist of transactions
with the Game segment, Pictures segment and All Other.
All Other intersegment amounts primarily consist of transactions with the
Electronics and Game segments.
Operating income
(loss) 2006 2007 Change 2007
--------------- ------ ------ ------ ------
Electronics Y234,481 Y357,515 +52.5 % $3,136
Game (124,498) (112,970) - (991)
Pictures 9,796 19,159 +95.6 168
Financial Services 54,616 52,721 -3.5 463
All Other 23,555 28,874 +22.6 253
--------------- ------ ------ ------
Total 197,950 345,299 +74.4 3,029
Corporate and (12,828) 33,852 - 297
elimination
--------------- ------ ------ ------
Consolidated total Y185,122 Y379,151 +104.8 % $3,326
Electronics Sales and Operating Revenue to
Customers by Product Category
-----------------------------------------
(Millions of yen, millions of U.S. dollars)
Sales and operating Third quarter ended December 31
revenue 2006 2007 Change 2007
--------------- ------ ------ ------ ------
Audio Y174,689 Y192,001 +9.9 % $1,684
Video 355,433 390,216 +9.8 3,423
Televisions 420,817 507,700 +20.6 4,453
Information 253,596 322,159 +27.0 2,826
and Communications
Semiconductors 52,199 61,534 +17.9 540
Components 227,588 234,375 +3.0 2,056
Other 159,351 165,246 +3.7 1,450
--------------- ------ ------ ------
Total Y1,643,673 Y1,873,231 +14.0 % $16,432
Sales and operating Nine months ended December 31
revenue 2006 2007 Change 2007
--------------- ------ ------ ------ ------
Audio Y412,636 Y446,490 +8.2% $3,916
Video 908,534 1,043,628 +14.9 9,155
Televisions 934,357 1,052,209 +12.6 9,230
Information 687,087 823,029 +19.8 7,219
and
Communications
Semiconductors 152,672 172,726 +13.1 1,515
Components 653,659 646,496 -1.1 5,671
Other 412,394 441,475 +7.1 3,873
--------------- ------ ------ ------
Total Y4,161,339 Y4,626,053 +11.2 % $40,579
The above table is a breakdown of Electronics sales and operating revenue
to customers in the Business Segment Information.
The Electronics segment is managed as a single operating segment by
Sony's management. However, Sony believes that the information in this
table is useful to investors in understanding the
product categories in this business segment.
Geographic Segment Information
------------------------------
(Millions of yen, millions of U.S. dollars)
Sales and operating Third quarter ended December 31
revenue 2006 2007 Change 2007
--------------- ------ ------ ------ ------
Japan Y609,734 Y565,990 -7.2 % $4,965
United States 763,651 758,370 -0.7 6,652
Europe 682,402 842,062 +23.4 7,387
Other Areas 551,888 692,608 +25.5 6,075
--------------- ------ ------ ------
Total Y2,607,675 Y2,859,030 +9.6 % $25,079
Sales and operating Nine months ended December 31
revenue 2006 2007 Change 2007
--------------- ------ ------ ------ ------
Japan Y1,583,365 Y1,601,121 +1.1 % $14,045
United States 1,691,037 1,736,896 +2.7 15,236
Europe 1,498,273 1,810,008 +20.8 15,877
Other Areas 1,433,415 1,770,552 +23.5 15,531
--------------- ------ ------ ------
Total Y6,206,090 Y6,918,577 +11.5 % $60,689
Classification of Geographic Segment Information shows sales and
operating revenue recognized by location of customers.
Condensed Financial Services Financial Statements
-------------------------------------------------
The results of the Financial Services segment are included in Sony's
consolidated financial statements. The following schedules show unaudited
condensed financial statements for the Financial Services segment and all other
segments excluding Financial Services. These presentations are not required
under U.S. GAAP, which is used by Sony to prepare its consolidated financial
statements. However, because the Financial Services segment is different in
nature from Sony's other segments, Sony believes that a comparative presentation
may be useful in understanding and analyzing Sony's consolidated financial
statements. Transactions between the Financial Services segment and Sony without
Financial Services are eliminated in the consolidated figures shown below.
Condensed Balance Sheet
-----------------------
(Millions of yen, millions of U.S. dollars)
Financial Services December 31
--------------------------------
March 31
ASSETS 2006 2007 2007 2007
------ ------ ------ ------
Current assets:
Cash and Y222,442 Y212,700 $1,866 Y277,048
cash equivalents
Marketable 485,502 478,509 4,197 490,237
securities
Other 303,162 629,292 5,520 321,969
------ ------ ------ ------
1,011,106 1,320,501 11,583 1,089,254
Investments and 3,298,833 3,688,169 32,352 3,347,897
advances
Property, plant 39,214 38,336 336 38,671
and equipment
Other assets:
Deferred 394,527 399,591 3,505 394,117
insurance
acquisition
costs
Other 107,280 101,687 893 107,703
------ ------ ------ ------
501,807 501,278 4,398 501,820
------ ------ ------ ------
Y4,850,960 Y5,548,284 $48,669 Y4,977,642
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term Y69,563 Y73,283 $643 Y48,688
borrowings
Notes and 14,935 17,112 150 13,159
accounts payable,
trade
Deposits from 717,528 980,604 8,602 752,367
customers in the
banking business
Other 134,785 209,565 1,838 143,245
------ ------ ------ ------
936,811 1,280,564 11,233 957,459
Long-term liabilities:
Long-term 131,671 114,929 1,008 129,484
debt
Accrued 13,038 6,422 56 8,773
pension and
severance costs
Future 2,960,559 3,245,753 28,472 3,037,666
insurance policy
benefits and other
Other 198,987 215,809 1,893 204,317
------ ------ ------ ------
3,304,255 3,582,913 31,429 3,380,240
Minority interest 4,587 4,226 37 5,145
in consolidated
subsidiaries
Stockholders' 605,307 680,581 5,970 634,798
equity
------ ------ ------ ------
Y4,850,960 Y5,548,284 $48,669 Y4,977,642
(Millions of yen, millions of U.S. dollars)
Sony without Financial December 31
Services -----------------------------
March 31
2006 2007 2007 2007
------ ------ ------ ------
ASSETS
Current assets:
Cash and cash Y510,881 Y811,173 $7,115 Y522,851
equivalents
Marketable 3,083 3,004 27 3,078
securities
Notes and 1,676,464 1,609,327 14,117 1,343,128
accounts
receivable,
trade
Other 1,692,507 1,854,875 16,271 1,625,914
------ ------ ------ ------
3,882,935 4,278,379 37,530 3,494,971
Film costs 337,616 329,920 2,894 308,694
Investments and 614,597 607,488 5,329 623,342
advances
Investments in 187,400 116,843 1,025 187,400
Financial
Services, at cost
Property, plant 1,412,900 1,394,912 12,236 1,382,860
and equipment
Other assets 1,029,913 1,216,533 10,671 1,100,795
------ ------ ------ ------
Y7,465,361 Y7,944,075 $69,685 Y7,098,062
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term Y338,052 Y444,711 $3,901 Y80,944
borrowings
Notes and 1,160,617 1,234,036 10,825 1,167,324
accounts
payable,
trade
Other 1,387,184 1,569,936 13,771 1,392,333
------ ------ ------ ------
2,885,853 3,248,683 28,497 2,640,601
Long-term
liabilities:
Long-term 927,711 661,393 5,802 925,259
debt
Accrued 157,463 172,930 1,517 164,701
pension and
severance
costs
Other 415,043 429,811 3,770 410,354
------ ------ ------ ------
1,500,217 1,264,134 11,089 1,500,314
Minority interest 36,363 38,538 338 32,808
in consolidated
subsidiaries
Stockholders' 3,042,928 3,392,720 29,761 2,924,339
equity
------ ------ ------ ------
Y7,465,361 Y7,944,075 $69,685 Y7,098,062
(Millions of yen, millions of U.S. dollars)
Consolidated December 31 March 31
------------------------------- --------
ASSETS 2006 2007 2007 2007
------ ------ ------ ------
Current assets:
Cash and cash Y733,323 Y1,023,873 $8,981 Y799,899
equivalents
Marketable 488,585 481,513 4,224 493,315
securities
Notes and 1,698,575 1,615,443 14,171 1,369,777
accounts
receivable,
trade
Other 1,919,669 2,434,527 21,355 1,883,732
------ ------ ------ ------
4,840,152 5,555,356 48,731 4,546,723
Film costs 337,616 329,920 2,894 308,694
Investments and 3,828,406 4,227,205 37,081 3,888,736
advances
Property, plant 1,452,113 1,433,248 12,572 1,421,531
and equipment
Other assets:
Deferred 394,527 399,591 3,505 394,117
insurance
acquisition
costs
Other 1,088,047 1,271,193 11,151 1,156,561
------ ------ ------ ------
1,482,574 1,670,784 14,656 1,550,678
------ ------ ------ ------
Y11,940,861 Y13,216,513 $115,934 Y11,716,362
------ ------ ------ ------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term Y361,507 Y476,060 $4,176 Y95,461
borrowings
Notes and 1,174,004 1,249,761 10,963 1,179,694
accounts
payable, trade
Deposits from 717,528 980,604 8,602 752,367
customers in
the banking
business
Other 1,506,534 1,772,555 15,548 1,524,330
------ ------ ------ ------
3,759,573 4,478,980 39,289 3,551,852
Long-term liabilities:
Long-term 1,003,159 737,534 6,470 1,001,005
debt
Accrued 170,501 179,352 1,573 173,474
pension and
severance
costs
Future 2,960,559 3,245,753 28,472 3,037,666
insurance
policy
benefits and
other
Other 545,301 575,689 5,049 542,691
------ ------ ------ ------
4,679,520 4,738,328 41,564 4,754,836
Minority interest 41,967 296,823 2,604 38,970
in consolidated
subsidiaries
Stockholders' 3,459,801 3,702,382 32,477 3,370,704
equity
------ ------ ------ ------
Y11,940,861 Y13,216,513 $115,934 Y11,716,362
Condensed Statements of Income
------------------------------
Financial Services (Millions of yen, millions of U.S. dollars)
Third quarter ended December 31
2006 2007 Change 2007
------ ------ ------ ------
Financial service Y172,910 Y135,896 -21.4 % $1,192
revenue
Financial service 147,440 140,065 -5.0 1,229
expenses
------ ------ ------
Operating income 25,470 (4,169) - (37)
(loss)
Other income 5,893 (375) - (3)
(expenses), net
------ ------ ------
Income before 31,363 (4,544) - (40)
income taxes
(loss)
Income taxes and 11,868 (1,950) - (17)
other
------ ------ ------
Net income (loss) Y19,495 Y(2,594) - % $(23)
Sony without Financial
Services (Millions of yen, millions of U.S. dollars)
Third quarter ended December 31
2006 2007 Change 2007
------ ------ ------ ------
Net sales and Y2,442,878 Y2,730,374 +11.8 % $23,951
operating revenue
Costs and 2,289,791 2,537,337 +10.8 22,258
expenses
------ ------ ------
Operating income 153,087 193,037 +26.1 1,693
Other income (4,634) 100,012 - 878
(expenses), net
------ ------ ------
Income before 148,453 293,049 +97.4 2,571
income taxes
Income taxes and 8,031 90,196 +1,023.1 792
other
------ ------ ------
Net income Y140,422 Y202,853 +44.5 % $1,779
(Millions of yen, millions of U.S. dollars)
Consolidated Third quarter ended December 31
2006 2007 Change 2007
------ ------ ------ ------
Financial service Y167,060 Y128,927 -22.8 % $1,131
revenue
Net sales and 2,440,615 2,730,103 +11.9 23,948
operating revenue
------ ------ ------
2,607,675 2,859,030 +9.6 25,079
Costs and 2,428,768 2,669,672 +9.9 23,418
expenses
------ ------ ------
Operating income 178,907 189,358 +5.8 1,661
Other income, net 908 99,110 +10,815.2 869
------ ------ ------
Income before 179,815 288,468 +60.4 2,530
income taxes
Income taxes and 19,898 88,247 +343.5 774
other
------ ------ ------
Net income Y159,917 Y200,221 +25.2 % $1,756
(Millions of yen, millions of U.S. dollars)
Financial Services Nine months ended December 31
2006 2007 Change 2007
------ ------ ------ ------
Financial service Y465,112 Y478,240 +2.8 % $4,195
revenue
Financial service 410,496 425,519 +3.7 3,732
expenses
------ ------ ------
Operating income 54,616 52,721 -3.5 463
Other income 5,698 (530) - (5)
(expenses), net
------ ------ ------
Income before 60,314 52,191 -13.5 458
income taxes
Income taxes and 21,794 23,506 +7.9 206
other
------ ------ ------
Net income Y38,520 Y28,685 -25.5 % $252
(Millions of yen, millions of U.S. dollars)
Sony without Financial Nine months ended December 31
Services 2006 2007 Change 2007
------ ------ ------ ------
Net sales and Y5,765,255 Y6,466,499 +12.2 % $56,724
operating revenue
Costs and expenses 5,635,762 6,141,358 +9.0 53,872
------ ------ ------
Operating income 129,493 325,141 +151.1 2,852
Other income, net 24,025 89,429 +272.2 785
------ ------ ------
Income before 153,518 414,570 +170.0 3,637
income taxes
Income taxes and (8,125) 96,253 - 845
other
------ ------ ------
Net income Y161,643 Y318,317 +96.9 % $2,792
(Millions of yen, millions of U.S. dollars)
Consolidated Nine months ended December 31
2006 2007 Change 2007
------ ------ ------ ------
Financial service Y447,798 Y457,088 +2.1 % $4,010
revenue
Net sales and 5,758,292 6,461,489 +12.2 56,679
operating revenue
------ ------ ------
6,206,090 6,918,577 +11.5 60,689
Costs and expenses 6,020,968 6,539,426 +8.6 57,363
------ ------ ------
Operating income 185,122 379,151 +104.8 3,326
Other income, net 22,599 80,999 +258.4 710
------ ------ ------
Income before 207,721 460,150 +121.5 4,036
income taxes
Income taxes and 13,833 119,759 +765.7 1,050
other
------ ------ ------
Net income Y193,888 Y340,391 +75.6 % $2,986
Condensed Statements of Cash Flows
----------------------------------
(Millions of yen, millions of U.S. dollars)
Financial Services Nine months ended December 31
2006 2007 2007
------- ------- -------
Net cash provided by Y170,258 Y164,084 $1,439
operating activities
Net cash used in (199,042) (563,239) (4,940)
investing activities
Net cash provided by 133,596 334,807 2,937
financing activities
------- ------- -------
Net increase 104,812 (64,348) (564)
(decrease) in cash
and cash equivalents
Cash and cash 117,630 277,048 2,430
equivalents at
beginning of the
fiscal year
------- ------- -------
Cash and cash Y222,442 Y212,700 $1,866
equivalents at the
end of the period ------- ------- -------
(Millions of yen, millions of U.S. dollars)
Sony without Financial Nine months ended December 31
Services
2006 2007 2007
------- ------- -------
Net cash provided by Y(11,574) Y179,477 $1,574
(used in) operating
activities
Net cash provided by (374,679) 31,170 273
(used in) investing
activities
Net cash provided by 305,602 84,376 740
financing activities
Effect of exchange 6,064 (6,701) (59)
rate changes on cash
and cash equivalents
------- ------- -------
Net increase (74,587) 288,322 2,528
(decrease) in cash
and cash equivalents
Cash and cash 585,468 522,851 4,587
equivalents at
beginning of the
fiscal year
------- ------- -------
Cash and cash Y510,881 Y811,173 $7,115
equivalents at the
end of the period
(Millions of yen, millions of U.S. dollars)
Consolidated Nine months ended December 31
2006 2007 2007
------- ------- -------
Net cash provided by Y156,825 Y338,607 $2,970
operating activities
Net cash used in (567,385) (535,906) (4,701)
investing activities
Net cash provided by 434,721 427,974 3,754
financing activities
Effect of exchange 6,064 (6,701) (59)
rate changes on cash
and cash equivalents
------- ------- -------
Net increase in cash 30,225 223,974 1,964
and cash equivalents
Cash and cash equivalents 703,098 799,899 7,017
at beginning of the fiscal
year
------- ------- -------
Cash and cash Y733,323 Y1,023,873 $8,981
equivalents at the
end of the period
Investor Relations Contacts:
---------------------------
Tokyo New York London
Tatsuyuki Sonoda Sam Levenson/Justin Hill/ Shinji Tomita
Miki Emura
+81-(0)3-6748-2180 +1-212-833-6722 +44-(0)20-7444-9713
Home Page: http://www.sony.net/IR/