TIDMSON
Sony Corporation1-7-1 Konan, Minato-kuTokyo 108-0075 Japan
No.10-063E3:00 P.M. JST, May 13, 2010
Consolidated Financial Results for the Fiscal Year Ended March 31, 2010
Tokyo, May 13, 2010 -- Sony Corporation today announced its consolidated results for the fiscal year ended March 31, 2010 (April 1, 2009 to March 31, 2010).
-- Operating income of ¥31.8 billion was achieved, compared to an
operating loss in the previous fiscal year.
-- The Financial Services segment and the Consumer Products & Devices
segment, in particular LCD televisions, contributed to the improvement
in operating results year-on-year.
-- Cash flow from operating and investing activities combined was
positive and exceeded ¥300 billion excluding the Financial Services
segment's activities.
-- In the forecast for the fiscal year ending March 31, 2011, Sony
expects consolidated operating income to increase significantly
year-on-year. Sony also plans to aggressively launch 3D-related
products, network services and other new businesses with the aim of
future growth.
(Billions of yen, millions of U.S. dollars, except per share amounts)
Fiscal year ended March 31
2009 2010 Change inyen 2010*
Sales and operating revenue ¥7,730.0 ¥7,214.0 -6.7% $77,570
Operating income (loss) (227.8 ) 31.8 - 342
Income (loss) before income taxes (175.0 ) 26.9 - 289
Net income (loss) attributable to
Sony Corporation's stockholders ** (98.9 ) (40.8 ) - (439 )
Net income (loss) attributable to
Sony Corporation's stockholders
per share of common stock:
- Basic and Diluted ¥(98.59 ) ¥(40.66 ) - $(0.44 )
Unless otherwise specified, all amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. ("U.S. GAAP").
Supplemental Information In addition to operating income (loss), Sony's management also evaluates Sony's performance using non-U.S. GAAP adjusted operating income (loss). Operating income (loss), as adjusted, which excludes equity in net income (loss) of affiliated companies, restructuring charges and LCD television asset impairment, is not a presentation in accordance with U.S. GAAP, and is presented to enhance investors' understanding of Sony's operating income (loss) by providing an alternative measure that may be useful to understand Sony's historical and prospective operating performance.
(Billions of yen, millions of U.S. dollars)
Fiscal year ended March 31
2009 2010 Change in yen 2010
Operating income ¥(227.8 ) ¥31.8 - % $342
(loss)
Less: Equity in net (25.1 ) (30.2 ) - (325 )
income (loss)
of affiliated
companies
Add: Restructuring 75.4 124.3 +64.9 1,337
charges recorded
within operating
expenses
Add: LCD television - 27.1 - 291
asset
impairment ***
Operating income ¥(127.3 ) ¥213.4 - $2,295
(loss),
as adjusted
Sony's management uses this measure to review operating trends, perform analytical comparisons, and assess whether its structural transformation initiatives are achieving their objectives. This supplemental non-U.S. GAAP measure should be considered in addition to, not as a substitute for, Sony's operating income (loss) in accordance with U.S. GAAP.
* U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥93=U.S. $1, the approximate Tokyo foreign exchange market rate as of March 31, 2010.
** Net income (loss) attributable to Sony Corporation's stockholders is equivalent to net income (loss) in the consolidated financial statements for the fiscal years ended March 31, 2009 and prior.Modification of the presentation format of the consolidated statement of income is required by new accounting guidance for noncontrolling interests in consolidated financial statements, which Sony adopted effective April 1, 2009.
***The ¥27.1 billion loss on impairment, a non-cash charge recorded within operating income, primarily reflects a decrease in the estimated fair value of property, plant and equipment and certain intangible assets. Management's strategic plans updated in the fourth quarter of the fiscal year ended March 31, 2010 resulted in decreases in the assets' estimated service periods and corresponding estimated future cash flows leading to the impairment charge. Sony has excluded the loss on impairment from restructuring charges as it is not directly related to Sony's ongoing restructuring initiatives. Sony defines restructuring initiatives as activities initiated by Sony, such as exiting a business or product category or implementing a headcount reduction program, which are designed to generate a positive impact on future profitability.
Consolidated Results for the Fiscal Year Ended March 31, 2010
Sales and operating revenue ("sales") was ¥7,214.0 billion ($77,570 million), a decrease of 6.7% compared to the previous fiscal year ("year-on-year") primarily due to a decrease in sales in the Consumer Products & Devices ("CPD") segment, partially offset by an increase in revenue in the Financial Services segment.
During the fiscal year ended March 31, 2010, the average rate of the yen was ¥91.8 against the U.S. dollar and ¥129.7 against the euro, which was 8.4% and 9.5% higher, respectively, than the prior year. On a local currency basis, sales decreased 1% year-on-year. For references to sales on a local currency basis, see Note on page 10.
Operating income was ¥31.8 billion ($342 million), an improvement of ¥259.6 billion year-on-year. Operating results improved significantly primarily due to an improvement in operating results in the Financial Services segment, and both an improvement in the cost of sales ratio and a reduction in selling, general and administrative expenses mainly in the CPD segment. Excluding equity in net loss of affiliated companies, restructuring charges and a non-cash charge related to LCD television asset impairment, operating income on an as adjusted basis improved ¥340.7 billion to ¥213.4 billion ($2,295 million).
Equity in net loss of affiliated companies, recorded within operating income, was ¥30.2 billion ($325 million), an increased loss of ¥5.1 billion year-on-year. Sony recorded equity in net loss for Sony Ericsson Mobile Communication AB ("Sony Ericsson") of ¥34.5 billion ($371 million) compared to equity in net loss of ¥30.3 billion in the previous fiscal year. Equity in net income for S-LCD Corporation ("S-LCD"), a joint venture with Samsung Electronics Co., Ltd., decreased ¥6.5 billion year-on-year to ¥0.4 billion ($4 million).
The net effect of other income and expenses was an expense of ¥4.9 billion ($53 million), a deterioration of ¥57.7 billion year-on-year, primarily due to the recording of a net foreign exchange loss in the current fiscal year versus a significant net foreign exchange gain recorded in the prior fiscal year.
Income before income taxes of ¥26.9 billion ($289 million) was recorded, an improvement of ¥201.9 billion year-on-year.
Income taxes: During the current fiscal year, Sony recorded ¥14.0 billion ($150 million) of income taxes resulting in an effective tax rate of 51.9%. This was primarily due to the impact of equity investments reported net of income taxes, partially offset by lower effective tax rates on profits in the insurance business.
Net loss attributable to Sony Corporation's stockholders, which excludes net income attributable to noncontrolling interests, was ¥40.8 billion ($439 million), a ¥58.1 billion improvement year-on-year.
To view the full announcement, paste the following link into your web browser:
http://www.sony.net/SonyInfo/IR/financial/fr/09q4_sony.pdf
Investor Relations Contacts:
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+81-(0)3-6748-2180 +1-212-833-6722 +44-(0)20-7426-8696
Home Page: http://www.sony.net/IR/
Presentation Slides: http://www.sony.net/SonyInfo/IR/financial/fr/09q4_sonypre.pdf
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