Sony Incorporated organizational structure and operations

¶ … Sony

Financial Projections

According to Sony's CEO Howard Stringer fiscal year 2008, "saw unprecedented economic turmoil the likes of which we could not have imagined just one year earlier. The global economic crisis, combined with the pronounced strength of the yen, significantly impaired the health of our operating results -- and those of many other companies-with a speed and ferocity that were unparalleled in recent history." (Letter to shareholders: A message from Howard Stringer, CEO).

Still, Stringer remains optimisitic for Sony's future prospects. He goes on to say, "Despite the challenging nature of the past fiscal year, the global economic crisis has presented us with an opportunity to re-position ourselves to take on our competitors and be poised to capitalize when the economy turns around." (Letter to shareholders: A message from Howard Stringer, CEO)

Sony's results for the fiscal year ended March 31, 2009 compares sales and operating revenue by reportable segments. Number is parentheses are the percentage contribution of each segment to total sales and operating revenue.

(Yen in millions)

2007 2008 2009

Electronics 5,443,336 (65.6) 5,931,708 (67.0) 5,032,920 (65.1)

Game 974,218 (11.7) 1,219,004 (13.7) 984,855 (12.7)

Pictures 966,260 (11.7) 855,482 (9.6) 717,513 (9.3)

Financial Services 624,282 (7.5) 553,216 (6.2) 523,307 (6.8)

All Other 287,599 (3.5) 312,004 (3.5) 471,398 (6.1)

Sales and operating revenue .8,295,695 (100.0) 8,871,414 (100.0) 7,729,933 (100.0)

Source: Form 20F Year Ended Mar. 31, 2009

3.3.1.1 All reportable segments in fiscal year ended March 31, 2009 are down compared to the proceeding fiscal year with the exception of all other, which is mainly comprised of SME, a global entertainment company.

3.3.1.2 When compared to fiscal years ended March 31, 2007 and March 31, 2008, 2009 results show that electronics, pictures, and financial services are down for two consecutive fiscal years. Even the games sector in 2009 showed only a slight improvement over 2007.

3.3.1.3 the decline in electronics, almost two-thirds of Sony's total business, is attributable to price pressures and the shorter product cycles in a variety of consumer product categories which Sony is having difficulty responding to.

3.3.1.4 the decline in the pictures segment is mainly due to the economic slowdown and the appreciation of the yen.

3.3.1.5 the decline in the financial services segment is mainly due to deterioration in earnings at Sony Life Insurance Co., Ltd. resulting from a significant decline in the Japanese stock market.