Corporate Data

Company Name: Sony Corporation Headquarters: 7-35, Kitashinagawa 6-chome, Shinagawa-ku, Tokyo 141-0001, Japan Phone: 81-(0)3-5448-2111 Founded: May 7, 1946 Capital: 625,194,066,332 yen (as of September 30, 2006) Fiscal Year: April 1 through March 31 of the following year Stock Exchange Listings: Tokyo, Osaka, New York, London
HD World: The Age of Blu-ray Has Arrived
Sony Corporation Investor Relations
Phone: 81-(0)3-5448-2111 E-mail: kabu-net@hqsr.sony.co.jp Web site: http://www.sony.net/IR/

Second Quarter

Fiscal Year 2006
Financial and Operating Highlights

Contents

Financial and Operating Highlights HD World: The Age of Blu-ray Has Arrived Key Consolidated Financial Data Consolidated Segment Information Stock Information (Common Stock) Sony Group Milestones

Financial Highlights

(Yen in billions) (Fiscal year) 1st quarter 2nd quarter 3rd quarter 4th quarter Full year 2005 2006
Sales and operating revenue * 1,568.1. 1,744.2. 1,711.6. 1,854.2. 2,375.1. Operating income (loss) (6.6. ) 27.0. 74.6. (20.8. 210.3. ) Income (loss) before income taxes 12.9. 54.0. 95.4. (26.1. 225.9. ) Equity in net income (loss) of affiliated companies, net (9.1. ) 3.6. (2.6. ) 19.7. 19.5. Net income (loss) (7.3. ) 32.3. 28.5. 1.7. 168.9. Restructuring charges** Net income (loss) per share of common stock (Yen) Basic Diluted Average exchange rate (Yen/U.S. dollar) Average exchange rate (Yen/Euro) 15.9. (8.68. ) (8.68. ) 10.7. 32.25. 30.75. 32.9. 28.63. 27.32. 5.3. 14.7.
1,855.7. (51.9. ) (47.9. ) 5.4. (66.5. ) 75.3. (66.48. ) (66.48. ) 116 139
7,510.6. 226.4. 286.3. 13.2. 123.6. 138.7. 122.58. 116.88. 112 136
1.68. 169.36. 1.60.161.60. 116 138
* Patent and license fees, previously included in other operating revenue, are included in sales and operating revenue. ** Restructuring charges are included in operating costs. Note: Financial statements for fiscal year 2005 have been made to conform to the presentation for fiscal year 2006.
Operating Highlights for the Second Quarter
Despite declines in the Game and Financial Services segments, consolidated sales and operating revenue in the second quarter of fiscal 2006 rose 8% from the same period in fiscal 2005, owing to increases in the Electronics and Pictures segments. An operating loss of 20.8 billion was recorded, compared with operating income of 74.6 billion in the second quarter of the previous fiscal year. This loss includes a 51.2 billion provision in the Electronics segment related to charges expected to be incurred as a result of the recall and replacement of battery packs for notebook computers. The increase in operating income in the second quarter of fiscal 2005 included a one-time gain of 73.5 billion resulting from the transfer to the Japanese government of the substitutional portion of Sonys Employee Pension Fund. The Game segment also registered an operating loss, due to the recording of charges associated with the preparations for the launch of the PLAYSTATION 3 (PS3) platform.

Topics

Cautionary Statement
Statements made in this release with respect to Sonys current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as believe, expect, plans, strategy, prospects, forecast, estimate, project, anticipate, aim, may or might and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on managements assumptions and beliefs in light of the information currently available to it. Sony cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on any obligation of Sony to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to (i) the global economic environment in which Sony operates, as well as the economic conditions in Sonys markets, particularly levels of consumer spending; (ii) exchange rates, particularly between the yen and the U.S. dollar, the Euro and other currencies in which Sony makes significant sales or in which Sonys assets and liabilities are denominated; (iii) Sonys ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, which are offered in highly competitive markets characterized by continual new product introductions, rapid development in technology and subjective and changing consumer preferences (particularly in the Electronics, Game and Pictures segments, and music business); (iv) Sonys ability to recoup large-scale investment required for technology development, increasing production capacity and by the Game segment for the development and introduction of a new platform; (v) Sonys ability to implement successfully personnel reduction and other business reorganization activities in its Electronics segment; (vi) Sonys ability to implement successfully its network strategy for its Electronics, Game and Pictures segments and All Other, including the music business, and to develop and implement successful sales and distribution strategies in its Pictures segment and music business in light of the Internet and other technological developments; (vii) Sonys continued ability to devote sufficient resources to research and development and, with respect to capital expenditures, to correctly prioritize investments (particularly in the Electronics segment); (viii) shifts in customer demand for financial services such as life insurance and Sonys ability to conduct successful Asset Liability Management in the Financial Services segment; and (ix) the success of Sonys joint ventures and alliances. Risks and uncertainties also include the impact of any future events with material unforeseen impacts. Past-year amounts in the 10-year trend charts for consolidated earnings stated in this fact book have not all been restated to reflect the basis on which fiscal year 2006 earnings are shown. This information is merely provided for convenience in understanding earnings trends.

Printed on 100% recycled paper. Printed with volatile organic chemical (VOC)-free vegetable oil-based ink using waterless printing, which generates no hazardous waste fluids.
The Cyber-shot DSC-T10, the newest model in the Cyber-shot lineup of digital cameras, scored a hit and combined with other models to boost sales of digital cameras. Sony Ericsson Mobile Communications AB achieved record results during its fourth quarter, the fifth anniversary of its establishment, and saw its market share expand, with results supported by the Cyber-shot- and Walkman-branded mobile phones. Major theatrical releases, including Talladega Nights: The Ballad of Ricky Bobby, contributed to an increase in theatrical revenues in the United States in excess of $1.0 billion for the fifth consecutive calendar year. Additionally, Sony Pictures Entertainment Inc.s revenues from new theatrical releases outside the United States reached $1.0 billion at a recordsetting pace.

New Products

BRAVIA X2500 Series
The BRAVIA X2500 series of liquid crystal display (LCD) televisions delivers stunning, vivid images thanks to the BRAVIA Engine PRO, a full digital high-definition (HD) video processing system that enhances HD image quality, and the Live Color Creation wide color gamut backlight system.
Blu-ray Disc Recorder BDZ-V Series
BDZ-V series Blu-ray Disc recorders are capable of recording and storing full-resolution content from digital HD broadcasting and Sonys Handycam digital HD camcorder on Blu-ray Disc.
VAIO Type R Master VGC-RM Series
The VGC-RM series VAIO Type R Master employs a new twin unit concept that facilitates layout adjustment to suit any environment, thereby making it easy to master and enjoy HD content editing.

Walkman S Series

The new Walkman S series features Sonys Clear Audio Technology, which accurately reproduces sound with the same quality as the original source, and built-in noise canceling technology, which cuts ambient noise, thereby ensuring an outstanding listening experience.

Cyber-shot DSC-T50

Equipped with a 7.2-megapixel 1/2.5 Super HAD CCD imager and three-inch touch panel LCD, the Cybershot DSC-T50 also features blur-reduction technologies, namely optical image stabilization and high light sensitivity up to ISO 1,000, thereby reducing blur caused by shaking hands and facilitating blur-free shooting at fast shutter speeds.

LocationFreeTM Base Station LF-PK20
The new LF-PK20 LocationFree Base Station employs MPEG-4 AVC video compression technology, which delivers enhanced video images. This unit makes it easy to stream television programming recorded on a DVD recorder, digital communications satellite broadcast programming, cable television programming and other content to a PC for viewing in another room, on the road or even overseas.
Note: Please be aware that product names, specifications and launch timing differ by country and region.
Sony Corporation Fact Book 2006 1
The mid-term corporate strategy, announced on September 22, 2005, will guide Sonys efforts from fiscal year 2005 through fiscal year 2007. One of the Electronics business growth initiatives contained in the strategy is HD World, which seeks to grow Sonys HD-related business into a major profit pillar. Sony is uniquely positioned to benefit from the shift to HD and already has an established range of broadcast and consumer hardware products, as well as content assets that lead the industry in digitization. Blu-ray Disca high-capacity, next-generation disc format supported by leading companies in every key industrywill also be a driver of Sonys HD business. In fiscal year 2006, Sony will introduce a range of Blu-ray Disc-related products and HD content. In this issue of the Sony Fact Book, we look at Blu-ray Disc, an essential component of HD World.
Blu-ray Disc Production Structure
In addition to playing a role in determining Blu-ray Disc format standards and developing compatible electronics products, Sony offers a full suite of services to support Blu-ray Disc, from HD video shooting, editing and authoring, which is necessary for transferring HD content to disc, mass production and packaging of discs. The steady production, supply and quality of these discs are supported by such facilities as Sony Music Manufacturing (SMM) in Japan and Sony Digital Audio Disc Corporation (Sony DADC) in the United States. For the production and packaging of prerecorded Blu-ray Disc read-only discs (BDROMs), Sony has established a three-pronged network comprising SMM, Sony DADC in the United States and Sony DADC Austria AG in Europe. These facilities employ Sonys proprietary Phase Transition Mastering (PTM) high-density optical disc mastering system to produce Blu-ray Disc video content that complies with the Advanced Access Content System (AACS) for domestic and export markets, as well as evaluation discs. Production lines currently use a sheet-coating process, but all will shift to a new spincoating process by 2006 year-end, thereby further lowering production costs and improving efficiency. Monthly production capacity for Blu-ray Discs will also be increased, to 2.5 million units in Japan, 5.0 million in the United States and 2.5 million in Europe, giving Sony a global monthly capacity of 10.0 million units (including game software produced for PS3).

BD-ROM manufacturing bases and capabilities
Sony DADC Austria Salzburg, Austria 2.5 million discs/month SMM Shizuoka, Japan 2.5 million discs/month
Sony DADC Indiana, U.S.A. 5.0 million discs/month

What is Blu-ray Disc?

Blu-ray Disc is the name of a next-generation optical disc developed to enhance enjoyment of HD video, as well as new video formats yet to come. Recording of full-resolution HD programming The same diameter as traditional CDs and DVDs (12cm), Blu-ray Disc comes in singlelayer, which offers over five times the storage capacity of a DVD and can hold up to 25GB, and dual-layer, which offers over 10 times the storage capacity of a DVD and can hold up to 50GB. Moreover, unlike DVD, Blu-ray Disc allows recording of up to three hours * of full-resolution HD programming. Blu-ray Discs capacity makes it possible to store a full-length movie on a single disc while retaining the original film quality, allowing the enjoyment of realistic, cinema-like video in the home. Not only does Blu-ray Disc facilitate the inclusion of bonus content, such as unreleased scenes and interviews, it also sets a new direction for storage media by offering advanced interactive features and Internet connectivity. Blu-ray Disc thus redefines the very nature of entertainment and delivers a new viewing experience.
* For recording of digital terrestrial broadcasting at approx. 17Mbps
Note: Forecasts as of the end of December 2006
5 times storage capacity of DVD
times storage capacity of DVD

Blu-ray Disc

Blu-ray Disc Content Currently Offered by Sony
Movies Sony Pictures Entertainments first Blu-ray Disc titles came to market in Japan in November 2006. A total of 13 titles are planned for November, followed by two more each in December 2006 and January 2007, with a total of 40 titles to be released by the end of March 2007.
November 3, 2006: Five titles released
Underworld: Evolution; The Producers; Hitch; A Knights Tale; S.W.A.T.

(Single-layer)

(Dual-layer)
Music Sony Music Entertainment (Japan) Inc. and Aniplex Inc. will launch their first five Blu-ray Disc music and video titles on November 22, 2006. Going forward, the companies will continue to expand their lineup of Blu-ray Disc music and video titles.
Blue-violet laser: The key to high-density recording CDs and DVDs use a red laser, which has a wavelength of 650 nanometers. By employing a blue-violet laser with a 405-nanometer wavelength, Blu-ray Disc successfully minimizes the size of the beam spot. Blu-ray Disc also uses an objective lens with a large numerical aperture (NA) to focus the laser, thereby increasing the precision to 0.85, compared with 0.6 for DVD. In addition, the tracking pitch is reduced to less than half of that of a regular DVD. In short, by focusing a blue-violet laser with a short wavelength using a high-NA lens, Blu-ray Disc succeeds in reducing the beam spot to 1/5 the size of the beam spot on a DVD. As a result, a single-layer Blu-ray Disc achieves a storage capacity of 25GBover five times the 4.7GB capacity of a DVD.

November 22, 2006: Five titles due for release
CHEMISTRY; SOULHEAD; Mika Nakashima; The Great Jazz Trio/Hank Jones; Ken Hirai
November 22, 2006: Eight titles due for release
Layer Cake; Rent; Into the Blue; The Exorcism of Emily Rose (Uncut Version); Stealth; Kung Fu Hustle; Tears of the Sun; Rikidozan

Coming soon:

Tamio Okuda; Gospellers; John Legend; Tomita Lab; Wang Leehom; The World Heritage (Artist names, except album title in italics)
December 20, 2006: Two titles due for release
50 First Dates; The Big Hit
January 1, 2007: Two titles due for release
Ultraviolet (Extended Cut); Resident Evil: Apocalypse

Laser wavelength

Substrate Recording layer

650nm 100% 0.6 0.74

405nm 19% 0.85 0.32

Optical spot

The Da Vinci Code; Crouching Tiger, Hidden Dragon; Big Fish; Stand By Me; Snatch; and many more!

Substrate

Optical spot (Area ratio)
Optical spot Optical transmission protection layer
Recording layer Optical transmission protection layer
Sony Blu-ray Disc Products
Lens numerical aperture (NA)

Tracking pitch

VAIO Type R Master/Type L, VGC-RM/LA Series PCs
PLAYSTATION 3 (PS3) Computer Entertainment System
2 Sony Corporation Fact Book 2006
Sony Corporation Fact Book 2006 3
Key Consolidated Financial Data
Sales and operating revenue, operating income and net income
Sales and operating revenue (left) Operating income (right) (Yen in billions) Net income (right) 1,000 Operating margin 800 600
Cash flows (Sony excluding the Financial Services segment)
Cash flows from operating activities (A) Cash flows from investing activities (B) (A)+(B)

Stockholders equity

Stockholders equity Stockholders equity ratio

Net income, ROA and ROE

Net income ROA (%) ROE 40
(Yen in billions) 10,000 8,000 6,000 4,000

6.5 7.8 5.0 3.3

(Yen in billions) 600 400

(Yen in billions) 4,000

(%) 30

(Yen in billions) 150

400 2,20

3.1 1.8 2.5 1.3 2.0 3.0

2,000 0

400 600

(Fiscal year)
Note: Because the Financial Services segment is different in nature from Sonys other operating segments, Sony has disclosed cash flows excluding the Financial Services segment since fiscal year 1999.

(As of fiscal year-end)

Depreciation and amortization and capital expenditures
Research and development expenses
Research and development expenses Research and development expenses (%) as a percentage of sales* 2 0
Interest-bearing liabilities

Short-term borrowings* Long-term debt Cash and cash equivalents as of fiscal year-end
Inventories and inventory turnover
Inventories Inventory turnover (Months) 1 0

(Yen in billions) 100 0

Depreciation and amortization Capital expenditures

(Yen in billions) 400

(Yen in billions) 2,000 1,600 1,400 0
(Yen in billions) 1,200 0
* Sales excludes Financial Services segment revenue and other operating revenue portions of consolidated sales and operating revenue.
* Does not include the current portion of long-term debt
(Yen in millions) Fiscal year

(Yen in millions)

5,663,134 370,330 139,460 6.5. 312,429 9,399 266,532 298,078
6,761,004 525,724 222,068 7.8. 459,263 (5,514) 301,665 387,955
6,804,182 338,061 179,004 5.0. 377,691 (9,563) 307,173 353,730
6,686,661 223,204 121,835 3.3. 264,310 (37,830) 376,603 (351,041) 306,505 435,887
7,314,824 225,346 16,754 3.1. 265,868 (44,455) 305,218 (534,637) 348,268 465,209
7,578,258 134,631 15,310 1.8. 92,775 (34,472) 436,059 (368,951) 354,135 326,734
7,473,633 185,440 115,519 2.5. 247,621 (44,690) 544,051 (185,883) 351,925 261,241
7,496,391 98,902 88,511 1.3. 144,067 1,714 401,090 (352,496) 366,269 378,264
7,191,325 145,628 163,838 2.0. 157,207 29,039 485,439 (472,119) 372,865 356,818
7,510,597 226,416. 123,616. 3.0. 286,329 13,176 251,975 (296,376) 381,843 384,347

Fiscal year

5,680,246

6,403,043

6,299,053

6,807,197

7,827,966

8,185,795

8,370,545

9,090,662

Sales and operating revenue Operating income 1 Net income Operating margin (%) Income before income taxes Equity in net income (loss) of affiliated companies, net 2 Cash flows from operating activities* Cash flows from investing activities* Depreciation and amortization Capital expenditures

Total assets

9,499,100 10,607,753
Stockholders equity 1 Stockholders equity ratio (%)

1,459,332 25.7.

1,815,555 28.4.

1,823,665 29.0.

2,182,906 32.1.

2,315,453 29.6.

2,370,410 29.0.

2,280,895 27.2.

2,378,002 26.2.

2,870,338 30.2.

3,203,852 30.2.
Net income 2 ROA (%) ROE (%)

139,460 2.6. 10.6.

222,068 3.7. 13.6.

179,004 2.8. 9.8.

121,835 1.9. 6.1.

16,754 0.2. 0.7.

15,310 0.2. 0.7.

115,519 1.4. 5.0.

88,511 1.0. 3.8.

163,838 1.8. 6.2.

123,616 1.2. 4.1.
Research and development expenses 4 Research and development expenses as a percentage of sales** (%) Average exchange rate (Yen/U.S. dollar) Average exchange rate (Yen/Euro) Number of employees
Short-term borrowings* 282,569 318,044 375,314 394,479 416,708 433,214 443,128 514,483 502,008 531,5.2. 112 5.0. 122 5.9. 127 6.3. 189,700 6.1. 181,800 6.1. 168,000 6.4. 161,100 7.5. 162,000 7.0. 151,400 7.1. 4 151,000 163,000 185,200 158,500 Inventory turnover (months) Long-term debt Cash and cash equivalents as of fiscal year-end

328,116 1,099,765

199,411 1,104,420

128,702 1,037,460

214,935 813,828

356,373 843,687

354,063 838,617

158,745 807,439

475,017 777,649

230,266 678,992

336,321 764,898

428,518

423,286

592,210

626,064

607,245

683,800

713,058

849,211

779,103

703,098

Inventories

869,800 1.9.

993,927 1.7.

877,898 1.7.

746,550 1.6.

942,876 1.5.

673,437 1.4.

625,727 1.1.

666,507 1.1.

631,349 1.2.

804,724 1.3.

* Sony has disclosed cash flows excluding the Financial Services segment since fiscal year 1999. ** Sales excludes Financial Services segment revenue and other operating revenue portions of consolidated sales and operating revenue.
4 Sony Corporation Fact Book 2006
* Does not include the current portion of long-term debt ROA (Return on assets) = Net income/Average total assets ROE (Return on equity) = Net income/Average stockholders equity Inventory turnover = Inventories/(Net sales/12)
Sony Corporation Fact Book 2006 5

Consolidated Segment Information
Stock Information (Common Stock)
Sales and operating revenue by business segment
Electronics Game Music Pictures Financial Services All Other
Sales and operating revenue by geographic segment
Japan U.S.A. Europe Other

Net income per share

Basic Diluted

PER and PBR

PER (basic) (left) PBR (right)

(Yen in billions) 8,000

(Yen) 300 250

(Times) 600

(Times) 4

6,000 200

150 100

2,000 50

Notes: 1. Excludes intersegment transactions 2. Effective April 1, 2004, the results for the Music segment are included within the All Other segment.
Electronics sales and operating revenue to customers by product category
Audio Video Televisions Information and Communications Semiconductors Components Other
Breakdown of sales and operating revenue
Business segment Geographic segment

Other 21.8% Japan 29.3%

Number of shareholders and ownership and distribution of shares
Foreign institutions and individuals Japanese financial institutions Japanese individuals and others Other Japanese corporations Japanese securities firms Number of shareholders (right) (Thousands of shareholders) 1,000 800
Stock price range and trading volume on the Tokyo Stock Exchange
25,000 20,000 15,000 10,000
(Yen in billions) 5,000 4,000 3,000 2,000 1,000 0
Financial Services 9.6% Pictures 9.9%

All Other 4.4%

(%) 100 80
Common stock (left) Nikkei Stock Average (left) Trading volume (right)

Fiscal Year 2005

Game 12.2% Electronics 63.9%
05 (As of fiscal year-end)

(Millions of shares)

500 250

(Quarter)

Europe 22.8%

U.S.A. 26.1%

Note: Excludes intersegment transactions Note: Excludes intersegment transactions
Notes: 1. Sonys stock price and the Nikkei Stock Average are the simple average closing prices on the last trading day in each three-month period on the Tokyo Stock Exchange. 2. Trading volume refers to the number of Sony shares traded in each three-month period on the Tokyo Stock Exchange. 3. Stock prices have been adjusted to reflect a two-for-one stock split completed on May 19, 2000.
3,930,292 408,335 570,119 438,551 227,920 87,917 5,663,134
4,380,084 699,574 658,381 644,183 291,061 87,721 6,761,004
4,356,254 760,071 717,297 545,956 339,368 85,236 6,804,182
4,395,906 630,662 665,047 494,332 380,317 120,397 6,686,661
4,982,432 646,147 571,003 555,227 447,147 112,868 7,314,824

4,772,550 986,529 541,418 635,841 480,190 161,730 7,578,258
4,543,313 936,274 512,908 802,770 509,398 168,970 7,473,633
4,838,268 753,732 409,487 756,370 565,752 172,782 7,496,391
4,835,980 702,524 733,677 537,715 381,429 7,191,325
4,796,061 918,252 745,859 720,566 329,859 7,510,597
183.9. 154.6. 47.0. 56.0. 2.3.
278.9. 241.7. 40.5. 46.8. 2.5. 5,650 16,527 407,195,271 2,300,183,720
218.4. 195.5. 50.1. 56.0. 2.5. 5,475 15,836 410,439,111 2,247,193,357
144.6. 131.7. 100.3. 110.1. 3.0. 14,500 20,337 453,639,163 6,577,352,336
18.3. 19.3. 486.3. 461.1. 3.5. 8,900 12,999 919,617,134 8,184,617,888
16.7. 16.7. 401.2. 401.2. 2.6. 6,700 11,024 919,744,355 6,162,725,124
125.7. 118.2. 33.4. 35.5. 1.7. 4,200 7,972 922,385,176 3,874,799,615
96.0. 91.0. 45.4. 48.0. 1.7. 4,360 11,715 926,418,280 4,039,830,988
175.9. 158.1. 24.3. 27.0. 1.5. 4,270 11,668
122.6. 116.9. 44.5. 46.6. 1.7. 5,450 17,059
1 Sales and operating revenue by business segment* Electronics Game Music Pictures Financial Services All Other Total Sales and operating revenue 2 by geographic segment Japan Overseas U.S.A. Europe Other Total Electronics sales and 3 operating revenue to customers by product category Audio Video Televisions Information and Communications Semiconductors Components Other Total
Net income per share 1 Basic (Yen) Diluted (Yen) PER (basic) (times) 2 PER (diluted) (times) PBR (times) 4
1,590,820 4,072,314 1,639,334 1,304,491 1,128,489 5,663,134
1,848,023 4,912,981 2,101,222 1,568,830 1,242,929 6,761,004
1,917,028 4,887,154 2,158,006 1,667,010 1,062,138 6,804,182
2,121,249 4,565,412 2,027,129 1,470,447 1,067,836 6,686,661
2,400,777 4,914,047 2,179,833 1,473,780 1,260,434 7,314,824
2,248,115 5,330,143 2,461,523 1,609,111 1,259,509 7,578,258
2,093,880 5,379,753 2,403,946 1,665,976 1,309,831 7,473,633
2,220,747 5,275,644 2,121,110 1,765,053 1,389,481 7,496,391
2,132,462 5,058,863 1,977,310 1,612,576 1,468,977 7,191,325
2,203,813 5,306,784 1,957,644 1,715,775 1,633,365 7,510,597

Stock price (closing) (Yen) 4,325 Nikkei Stock Average (Yen) 18,003 Number of shares outstanding as of fiscal year-end 384,185,043 Market capitalization as of fiscal year-end (Yen in millions) 1,661,600 Cash dividends applicable to the year (Yen) 25 216,057
997,211,213 1,001,679,664 4,258,783,263 5,459,718,449
1,029,961 816,582 704,075 764,512 615,162 3,930,292
1,127,788 870,854 709,043 894,810 777,589 4,380,084
1,072,621 969,129 702,620 914,140 697,744 4,356,254
934,865 976,705 714,188 1,052,707 717,441 4,395,906
756,393 791,465 797,618 1,260,531 237,668 569,478 569,279 4,982,432
747,469 806,401 842,388 1,167,328 182,276 525,568 501,120 4,772,550
682,517 851,064 950,166 836,724 204,710 527,782 490,350 4,543,313
675,496 949,261 925,501 834,757 253,237 623,799 576,217 4,838,268
571,864 1,036,328 921,195 816,150 184,235 751,097 555,111 4,835,980
536,187 1,021,325 927,769 842,537 172,249 800,716 495,278 4,796,061
Number of shareholders Ownership and distribution of shares (%) Foreign institutions and individuals 3 Japanese financial institutions Japanese individuals and others Other Japanese corporations Japanese securities firms
39.0. 33.0. 17.2. 9.7. 1.1.
45.0. 33.4. 12.7. 8.3. 0.6.
45.1. 33.5. 12.9. 7.9. 0.6.
44.5. 29.0. 18.7. 7.0. 0.8.
39.6. 29.4. 23.5. 6.0. 1.5.
38.7. 28.2. 27.4. 5.2. 0.5.
35.8. 27.0. 30.5. 5.6. 1.1.
39.4. 20.7. 34.0. 4.8. 1.1.
48.1. 17.2. 30.0. 3.7. 1.0.
50.1. 18.5. 27.0. 3.5. 0.9.
* Excludes intersegment transactions Note: Effective April 1, 2004, the results for the Music segment are included within the All Other segment.
Notes: 1. Stock prices have been adjusted to reflect a two-for-one stock split completed on May 19, 2000. 2. On June 20, 2001, Sony issued 3,072,000 shares of tracking stock in a subsidiary. This stock is included in calculations for ownership and distribution of shares and number of shareholders. PER (price-earnings ratio) = Closing prices for fiscal year/EPS PBR (price book-value ratio) = Closing prices for fiscal year/Stockholders equity per share
6 Sony Corporation Fact Book 2006
Sony Corporation Fact Book 2006 7

Sony Group Milestones

Sales and Operating Revenue

(Yen in billions)

8,000 6,000 4,000 2,000 0

PlayStation (SCPH-1000)

BRAVIA series of flat panel televisions
Trinitron color television (KV-1310)

1982 1955

Japans first transistor radio (TR-55) Betacam-format camcorder for broadcast use (BVW-1)
Sony Walkman (TPS-L2) portable cassette player

2000 1989

Handycam (CCD-TR55) compact, lightweight passport-sized 8mm camcorder PlayStation 2 (SCPH-10000)
The worlds first non-projection type all-transistor television (TV8-301)

CD Player (CDP-101)

VAIO series of personal computers for consumer use

1989 1946

Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation) is established.
Tokyo Tsushin Kogyo changes its name to Sony Corporation.
CBS/Sony Records Inc. is established (currently Sony Music Entertainment (Japan) Inc.).
Sony acquires Columbia Pictures Entertainment, Inc. (currently Sony Pictures Entertainment Inc.).

1998 1979

Sony Prudential Life Insurance Co., Ltd., is established (currently Sony Life Insurance Co., Ltd.).
Sony acquires CBS Records Inc. (currently SONY BMG MUSIC ENTERTAINMENT).
Sony Insurance Planning Inc. is established (currently Sony Assurance Inc.).

2001 1993

Sony Computer Entertainment Inc. is established. Sony Bank Inc. is established.
8 Sony Corporation Fact Book 2006
Sony Corporation Fact Book 2006 9