SON: Sony Corporation: Consolidated Financial Results for the Fiscal Year
Ended March 31, 2013
UK Regulatory Announcement
1-7-1 Konan, Minato-ku
Tokyo 108-0075 Japan
3:00 P.M. JST, May 9, 2013
Consolidated Financial Results for the Fiscal Year Ended March 31, 2013
Tokyo, May 9, 2013 -- Sony Corporation today announced its consolidated
financial results for the fiscal year ended March 31, 2013 (April 1, 2012 to
March 31, 2013).
(Billions of yen, millions of U.S. dollars, except per
Fiscal year ended March 31
2012 2013 Change 2013^*
Sales and operating ¥6,493.2 ¥6,800.9 +4.7 % $72,349
Operating income (67.3 ) 230.1 - 2,448
Income (loss) before (83.2 ) 245.7 - 2,614
Net income (loss)
attributable to Sony (456.7 ) 43.0 - 458
Net income (loss)
attributable to Sony
share of common
- Basic ¥(455.03 ) ¥42.80 - $0.46
- Diluted (455.03 ) 40.19 - 0.43
* U.S. dollar amounts have been translated from yen, for convenience only, at
the rate of 94 yen = 1 U.S. dollar, the approximate Tokyo foreign exchange
market rate as of March 31, 2013.
All amounts are presented on the basis of Generally Accepted Accounting
Principles in the U.S. (“U.S. GAAP”).
Sony realigned its business segments from the first quarter of the fiscal year
ended March 31, 2013 to reflect modifications to its organizational structure
as of April 1, 2012, primarily repositioning the operations of the previously
reported Consumer Products & Services (“CPS”), Professional, Device &
Solutions (“PDS”) and Sony Mobile Communications (“Sony Mobile”) segments. In
connection with this realignment, the operations of the former CPS, PDS and
Sony Mobile segments are reclassified in five newly established segments,
namely the Imaging Products & Solutions (“IP&S”), Game, Mobile Products &
Communications (“MP&C”), Home Entertainment & Sound (“HE&S”) and Devices
segments, as well as All Other. The previously reported Sony Mobile segment is
now included in the MP&C segment as the Mobile Communications category. The
network business previously included in the CPS segment and the medical
business previously included in the PDS segment are now included in All Other.
For further details regarding segment and category changes, see page 15.
In connection with this realignment, both sales and operating revenue
(“sales”) and operating income (loss) of each segment in the fiscal year ended
March 31, 2012 have been restated to conform to the current fiscal year’s
The average foreign exchange rates during the fiscal years ended March 31,
2012 and March 31, 2013 are presented below.
Fiscal year ended March 31
2012 2013 Change
The average rate of yen
1 U.S. dollar ¥ 78.1 ¥ 83.1 6.1 % （yen depreciation）
1 Euro 107.5 107.2 0.3 （yen appreciation）
Consolidated Results for the Fiscal Year Ended March 31, 2013
Sales were 6,800.9 billion yen (72,349 million U.S. dollars), an increase of
4.7% compared to the previous fiscal year (“year-on-year”). This increase was
primarily due to the impact of consolidating Sony Mobile Communications AB
(“Sony Mobile”, formerly known as Sony Ericsson Mobile Communications AB
(“Sony Ericsson”)) as a wholly-owned subsidiary, the favorable impact of
foreign exchange rates and an increase in financial services revenue in the
Financial Services segment. Partially offsetting the increase in sales was a
decrease in unit sales of key electronics products and the negative impact
resulting from the sales of the small- and medium-sized display business and
the chemical products related business. On a constant currency basis, sales
increased 2% year-on-year. For further details about sales on a constant
currency basis, see Note on page 11. On a pro forma basis, had Sony Mobile
been fully consolidated for the entire previous fiscal year, consolidated
sales would have decreased approximately 2% year-on-year.
Operating income of 230.1 billion yen (2,448 million U.S. dollars) was
recorded, compared to an operating loss of 67.3 billion yen in the previous
fiscal year. This significant improvement was primarily due to the recording
of sale and remeasurement gains associated with the sale of assets undertaken
as a part of Sony’s efforts to transform its business portfolio and strengthen
its financial structure, a decrease in losses from Televisions in accordance
with the Television Profitability Improvement Plan, and an improvement in the
operating results of the Devices segment, the Financial Services segment and
the Pictures segment. Operating results of the MP&C segment, the Game segment
and the IP&S segment deteriorated. A 102.3 billion yen remeasurement gain
associated with obtaining control of Sony Mobile was recorded in the MP&C
segment in the previous fiscal year.
Included in the gains on sale of assets recorded in operating income for the
fiscal year ended March 31, 2013 were a 122.2 billion yen (1,300 million U.S.
dollars) gain from the sale of certain shares of M3, Inc. (“M3”) and the
subsequent remeasurement of Sony’s remaining interest in M3, formerly a
consolidated subsidiary, in All Other, a 691 million U.S. dollar (65.5 billion
yen) gain on the sale of Sony’s U.S. headquarters building at 550 Madison
Avenue in New York City (“Sony’s U.S. headquarters building”) and a 42.3
billion yen (450 million U.S. dollars) gain on the sale of the “Sony City
Osaki” office building and premises (“Sony City Osaki”) in Tokyo in Corporate
and Elimination, and a 9.1 billion yen (97 million U.S. dollar) gain on the
sale of the chemical products related business in the Devices segment. (For
business segment information, please see F-6.)
Restructuring charges, net, increased 22.7 billion yen year-on-year to 77.5
billion yen (824 million U.S. dollars). The charges in the current fiscal year
were primarily related to restructuring initiatives in both the electronics
businesses and Sony’s headquarters.
Operating results for the current fiscal year included a net benefit of 40.0
billion yen (425 million U.S. dollars) from insurance recoveries related to
damages and losses incurred from the floods in Thailand (the “Floods”), which
took place in the previous fiscal year.
Equity in net loss of affiliated companies, recorded within operating income,
decreased 114.7 billion yen year-on-year to 6.9 billion yen (74 million U.S.
dollars). This improvement was primarily due to the absence of equity in net
loss for S-LCD Corporation (“S-LCD”) of 64.1 billion yen and equity in net
loss for Sony Ericsson of 57.7 billion yen, which were both accounted for
under the equity method in the previous fiscal year.
The net effect of other income and expenses was income of 15.6 billion yen
(166 million U.S. dollars) in the current fiscal year, compared to an expense
of 15.9 billion yen in the previous fiscal year. This improvement was
primarily due to an increase in gain on sale of securities investments
partially offset by an increase in net foreign exchange loss. The sale of
securities investments in the current fiscal year included a 40.9 billion yen
(435 million U.S. dollars) gain on the sale of Sony’s shares in DeNA Co., Ltd.
(“DeNA”), which were sold in March 2013.
Income before income taxes of 245.7 billion yen (2,614 million U.S. dollars)
was recorded, compared to a loss of 83.2 billion yen recorded in the previous
Income taxes: During the current fiscal year, Sony recorded 141.5 billion yen
(1,506 million U.S. dollars) of income tax expense. As of March 31, 2012, Sony
had established a valuation allowance against certain deferred tax assets for
Sony Corporation and its national tax filing group in Japan, the consolidated
tax filing group in the U.S., and certain other subsidiaries. During the
current fiscal year, certain of these tax filing groups and subsidiaries
incurred losses, and as such Sony continued to not recognize the associated
tax benefits. As a result, Sony’s effective tax rate for the current fiscal
year exceeded the Japanese statutory tax rate. Income tax expense decreased
173.7 billion yen as compared to the previous fiscal year, which was primarily
due to a non-cash charge recorded in the previous fiscal year to establish a
valuation allowance of 260.3 billion yen against certain deferred tax assets
held by subsidiaries in the U.S., Japan and the U.K.
Net income attributable to Sony Corporation’s stockholders, which excludes net
income attributable to noncontrolling interests, was 43.0 billion yen (458
million U.S. dollars) compared to a net loss of 456.7 billion yen in the
previous fiscal year.
To view the full announcement, paste the following link into your web browser:
Press spacebar to pause and continue. Press esc to stop.