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To Our Shareholders
Management Message
Efficiency and High Added Value
Strategy
Products
Topics
Continuing to be one of the worlds leading consumer brands
Nobuyuki Idei, Chairman
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Operational restructur- ing aimed at realizing outstanding efficiency and high added value
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A stellar performer at the Montreux Jazz Festival
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Making the television experience more realistic and user friendly
Enjoy a realistic television picture anytime, anywhere Television powered by Wega Engine technology
Studio Application, a function that combines Sonys expertise in many fields
A stylish remote control thats easy to use
File 01: Flat panel television WEGA
Automatic recording of your favorite programs and many other amazing features
I want to copy something onto a DVD as quickly as possible
Setting up a program recording has never been easier
Compatibility with various disc formats for stress-free recording
I want to record programs without worrying about how much space is left on the HDD
PSXA world of entertainment in one box
The remote control should be simple and fun to use
[DESR-7100]
I want a design that goes with my living room dcor
I want to connect my PSX to lots of other equipment
Chapter two of the VAIO story: Television picture quality on your PC
I want to see LCD television- quality images on my PC
I only want to see the keyboard and mouse when theyre needed
Can a PC double as both a video deck and DVD recorder?
It would be great if I could do everything with a remote control
The new Cybershot: Fun to carry around and take photos
I want a compact camera thats slender, yet durable
I want to share my pictures with friends and family immediately after taking them
I dont want to miss another great shot
I want to enjoy taking photos using a camera equipped with a Carl Zeiss lens
Capture it on DVD and watch it on a DVD player
There is no danger of mistakenly recording over other material
http://www.sony.net/Products/handycam/
DVD editing is easy
It has never been easier to dub content and send it to family and friends
The future of key components
Sonys goal is to be a manufacturer of the worlds preeminent semiconductors
Interview with Ken Kutaragi, Executive Deputy President, Corporate Executive Officer
Image sensors Display components Memory Stick
Lithium-ion batteries
Optical disc components and digital tuners
Blu-ray Disc
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Sony stands for captivating products
Eikou Sumura
Sony first caught my eye when I was a young child
Good instructors should listen to themselves
Like a memopad, my IC recorder is always by my side
R
research & development
Sonys R&D strategy
Sonys DNA: Freedom and open-mindedness
Strategic fields for the next three years
R&D activities for the fiscal year ended March 31, 2004
Long-term research fields
514.5
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The art of manufacturingAdding value and driving Sonys growth
How Sony makes its products Speeding up the manufacturing revolution
Sony
Craftsmanship
A new information system that integrates sales, manufacturing and distribution
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Alejandro M. Lopez
Sonys technology: Transcending ages and generations
My son the Airboard expert
Cineza The artists assistant
An antique cabinet is my Sony treasure chest
Alejandro M. Lopez
Sony, a brand that I can trust
I choose Sony for many reasons
The Lance Lee Method for recording athletics
A quality image
Lance Lee
At a Glance:
Operating Performance Highlights
Information and Communications
Semiconductors
Components Other
MusicGame
http://www.sony.net/games/ http://www.sony.net/music/
At a Glance:
Operating Performance Highlights
OtherFinancial ServicesPictures
Sales and Operating Loss
http://www.sony.net/movies/
Sales and Operating Income
Financial Services Revenue and Operating Income
Convergence A Key to Sonys
Entertainment
Game
Other
Constant Transformation
Broadband will accelerate the convergence of electronics and entertainment
Home Electronics
The proliferation of broadband networks with television as the hub
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Control the pocket, control the future: Sonys core concept in mobile consumer electronics
Mobile Electronics
Hi-MD format
Game
Building on the PlayStation platform to create a new world of computer entertainment
Proposing new modes of play EyeToy: Play
Entertainment
A music store for the digital age
MUSIC BUSINESS
PICTURES BUSINESS
The Chaku-Uta mobile phone ringtone download service
Taking the music library to mobile phone users
Sony Pictures Imageworks moves forward with IMAGEMOTION
Financial Services
Sony Finance International, Inc.
Sony Life
Sony Assurance
Sony Bank
Integrated Circuit (IC) Card Business
Other
Sonys Advertising Around the World
Corporate Governance
Functions of the Company with Committees system
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New Members of the Board and Corporate Executive Officers
Consolidated Financial Information
OPERATING RESULTS
OVERVIEW
RESTRUCTURING
Operating and Financial Review and Prospects
SALES
COST OF SALES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
OPERATING PERFORMANCE
OPERATING INCOME
OTHER INCOME AND EXPENSES
INCOME BEFORE INCOME TAXES
INCOME TAXES
RESULTS OF AFFILIATED COMPANIES ACCOUNTED FOR UNDER THE EQUITY METHOD
MINORITY INTEREST IN INCOME (LOSS) OF CONSOLIDATED SUBSIDIARIES
NET INCOME
OPERATING PERFORMANCE BY BUSINESS SEGMENT
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FOREIGN EXCHANGE FLUCTUATIONS AND RISK HEDGING
ASSETS, LIABILITIES AND STOCKHOLDERS EQUITY
ASSETS
LIABILITIES
INCREASE IN ASSETS AND LIABILITIES AS A RESULT OF CONSOLIDATION OF VARIABLE INTEREST ENTITIES
STOCKHOLDERS EQUITY
CONDENSED BALANCE SHEETS SEPARATING OUT THE FINANCIAL SERVICES SEGMENT (UNAUDITED)
INVESTMENTS
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CONTRACTUAL OBLIGATIONS, COMMITMENTS, AND CONTINGENT LIABILITIES
OFF-BALANCE SHEET ARRANGEMENTS
CASH FLOWS
CONDENSED STATEMENTS OF CASH FLOWS SEPARATING OUT THE FINANCIAL SERVICES SEGMENT (UNAUDITED)
LIQUIDITY AND CAPITAL RESOURCES
CAPITAL RESOURCES
LIQUIDITY MANAGEMENT AND COMMITMENT LINES
RATINGS
CASH MANAGEMENT
THE USE OF EVA METHODOLOGY
RESEARCH AND DEVELOPMENT
NUMBERS OF EMPLOYEES
REWARDING SHAREHOLDERS
TREND INFORMATION
ISSUES FACING SONY AND MANAGEMENTS RESPONSE TO THOSE ISSUES
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FORECAST OF CONSOLIDATED RESULTS
CRITICAL ACCOUNTING POLICIES
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RECENTLY ADOPTED ACCOUNTING STANDARDS
RECENT PRONOUNCEMENTS
Five-Year Summary of Selected Financial Data
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Quarterly Financial and Stock Information
Segment Information
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Consolidated Balance Sheets
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Consolidated Statements of Income
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Consolidated Statements of Cash Flows
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Consolidated Statements of Changes in Stockholders Equity
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Stock Information
Stock Price Range and Trading Volume on the Tokyo Stock Exchange
100
0
20,000
Stock Acquisition Rights and Bond Information
Straight Bonds
Bonds with Warrants
Stock Acquisition Rights (SARs)
Convertible Bonds
Investor Information