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Sony continued to face a challenging business environment during the fiscal year ended March 31, 2004. Nevertheless,
our sales increased as a result of higher sales to outside customers in the Electronics segment and higher revenue in the
Financial Services segment. Measures taken to bolster our lineup of electronics products proved to be particularly
beneficial. Our aggressive launch of new products in such categories as digital still cameras, flat panel televisions and
DVD recorders led to significant sales growth during the 2003 year-end holiday season. Operating income, in contrast,
fell sharply, primarily due to an increase in restructuring expenses and research and development expenses in new
businesses that will foster growth in the years ahead.
In the fiscal year ending March 31, 2005, we will concentrate management resources in businesses with significant
growth potential, making substantial investments in such areas as next generation, multi-purpose processors and other
key components and increasing the number of internally produced key components. By producing these components
internally, we will be able to build in added value — thereby differentiating them from the rest of the market. We are
planning to introduce more products that will be recognized as distinctly “Sony” in both the home and mobile electronics
categories, as well as innovative services, including an online music distribution service. At the same time, we will
continue to strengthen our operations through restructuring initiatives and take steps to improve the efficiency of our
product development and design. Through these and other initiatives, the Sony Group will lay a firm foundation for
growth and higher profitability in the mid- to long-term.
April 27, 2004
To Our Shareholders
Nobuyuki Idei Kunitake Ando
Chairman and Group Chief President and Group Chief
Executive Officer Operating Officer