Edgar Filing: SONY CORP

a51058584.htm

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of March 2015

Commission File Number: 001-06439

SONY CORPORATION

(Translation of registrant's name into English)

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN

(Address of principal executive offices)

The registrant files annual reports under cover of Form 20-F.

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,

Form 20-F X

Form 40-F __

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, Yes No X

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-______

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	SONY CORPORATION
	(Registrant)


	By: /s/ Kenichiro Yoshida
	(Signature)
	Kenichiro Yoshida
	Executive Vice President and
	Chief Financial Officer

Date: March 17, 2015

List of materials

Documents attached hereto:

i) Press release announcing Consolidated Financial Results for the Third Quarter Ended December 31, 2014


	1-7-1 Konan, Minato-ku Tokyo 108-0075 Japan
News & Information

No. 15-024E

3:00 P.M. JST, March 17, 2015

Consolidated Financial Results

for the Third Quarter Ended December 31, 2014

Tokyo, March 17, 2015 -- Sony Corporation (“Sony”) today announced its consolidated financial results for the third quarter ended December 31, 2014 (October 1, 2014 to December 31, 2014).

On February 4, 2015, Sony announced third quarter results for each of its segments, with the exception of the Pictures segment, and third quarter forecasts for consolidated results and the Pictures segment based on the information available to management at that time. Consolidated results and Pictures segment results have been updated to reflect actual results as shown below.

	(Billions of yen, millions of U.S. dollars, except per share amounts)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014*
Sales and operating revenue	¥	2,410.7	¥	2,566.7		+6.5	%	$	21,213
Operating income		88.9		182.1		+104.9			1,505
Income before income taxes		88.3		167.8		+90.1			1,387
Net income attributable to Sony Corporation’s stockholders		26.4		90.0		+241.0			744
Net income attributable to Sony Corporation’s stockholders per share of common stock:
- Basic	¥	25.43	¥	78.12		+207.2		$	0.65
- Diluted		22.58		76.96		+240.8			0.64

* U.S. dollar amounts have been translated from yen, for convenience only, at the rate of 121 yen = 1 U.S. dollar, the approximate Tokyo foreign exchange market rate as of December 31, 2014.

The average foreign exchange rates during the quarters ended December 31, 2013 and 2014 are presented below.

	Third Quarter ended December 31
	2013		2014		Change
The average rate of yen
1 U.S. dollar	¥	100.5	¥	114.5		12.3	%	（yen depreciation）
1 Euro		136.7		143.0		4.4		（yen depreciation）

Consolidated Results for the Third Quarter Ended December 31, 2014

Sales and operating revenue (“Sales”) were 2,566.7 billion yen (21,213 million U.S. dollars), an increase of 6.5% compared to the same quarter of the previous fiscal year (“year-on-year”). This increase is primarily due to the favorable impact of foreign exchange rates, a significant increase in Mobile Communications (“MC”) segment sales reflecting an increase in unit sales of smartphones, a significant increase in Devices segment sales due to the strong performance of image sensors, and a significant increase in Game & Network Services (“G&NS”) segment sales reflecting the strong performance of PlayStation 4 (“PS4”). This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business, and a decrease in sales in the Pictures segment, mainly due to lower Motion Pictures and Television Productions sales. On a constant currency basis, sales decreased by 0.3% year-on-year. For further details about sales on a constant currency basis, see Note on page 10.

Operating income increased 93.2 billion yen year-on-year to 182.1 billion yen (1,505 million U.S. dollars). This significant increase was primarily due to a significant improvement in the operating results of the Devices, Home Entertainment & Sound (“HE&S”), G&NS, and Imaging Products & Solutions (“IP&S”) segments. This improvement was partially offset by a significant decrease in operating income in the Pictures segment.

Operating income in the current quarter includes an 11.2 billion yen (93 million U.S dollars) write-down of PlayStation®Vita (“PS Vita”) and PlayStation TV (“PS TV”) components in the G&NS segment. In the same quarter of the previous fiscal year, a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the Devices segment and a 6.2 billion yen write-off of certain PC software titles in the G&NS segment were recorded.

During the current quarter, restructuring charges, net, decreased 4.6 billion yen year-on-year to 9.0 billion yen (75 million U.S. dollars). PC exit costs decreased 6.1 billion yen year-on-year to 4.9 billion yen (41 million U.S. dollars) which includes 1.4 billion yen (11 million U.S. dollars) of restructuring charges. For further details about PC exit costs, see page 7.

Equity in net loss of affiliated companies, recorded within operating income, of 0.1 billion yen (1 million U.S. dollars) was recorded, compared to income of 1.7 billion yen in the same period of the previous fiscal year. This deterioration was mainly due to a deterioration of equity in net income (loss) for EMI Music Publishing.

The net effect of other income and expenses was an expense of 14.3 billion yen (118 million U.S. dollars), a deterioration of 13.7 billion yen year-on-year primarily due to a decrease in the gain on sales of securities investments. In the same quarter of the previous fiscal year, a 7.4 billion yen gain on the sale of Sony’s share in SKY Perfect JSAT Holdings Inc. was recorded.

Income before income taxes increased 79.5 billion yen to 167.8 billion yen (1,387 million U.S. dollars).

Income taxes: During the current quarter, Sony recorded 56.2 billion yen (464 million U.S. dollars) of income tax expense, resulting in an effective tax rate of 33.5%.

Net income attributable to Sony Corporation’s stockholders, which excludes net income attributable to noncontrolling interests, increased 63.6 billion yen year-on-year to 90.0 billion yen (744 million U.S. dollars).

Operating Performance Highlights by Business Segment

“Sales and operating revenue” in each business segment represents sales and operating revenue recorded before intersegment transactions are eliminated. “Operating income (loss)” in each business segment represents operating income (loss) reported before intersegment transactions are eliminated and excludes unallocated corporate expenses.

Mobile Communications (MC)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014
Sales and operating revenue	¥	333.2	¥	429.0		+28.7	%	$	3,545

Operating income		6.3		9.3		+46.2			76

Sales increased 28.7% year-on-year (a 23% increase on a constant currency basis) to 429.0 billion yen (3,545 million U.S. dollars), primarily due to an increase in smartphone unit sales, an improvement in product mix and the favorable impact of foreign exchange rates.

Operating income increased 2.9 billion yen year-on-year to 9.3 billion yen (76 million U.S. dollars). This increase was primarily due to the above-mentioned improvement in product mix and increase in smartphone unit sales, partially offset mainly by the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs.

Game & Network Services (G&NS)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014
Sales and operating revenue	¥	454.9	¥	531.5		+16.8	%	$	4,393

Operating income		12.4		27.6		+122.8			228

Sales increased 16.8% year-on-year (an 8% increase on a constant currency basis) to 531.5 billion yen (4,393 million U.S. dollars). This significant increase was primarily due to an increase in PS4 hardware unit sales, the favorable impact of foreign exchange rates and a significant increase in network services revenue, partially offset by a decrease in PlayStation®3 (“PS3”) hardware and PS3 software sales. Sales to external customers increased 19.7% year-on-year.

Operating income increased 15.2 billion yen year-on-year to 27.6 billion yen (228 million U.S. dollars). This significant increase was primarily due to the impact of the above-mentioned increase in sales, partially offset by the impact of the decrease in PS3 software sales, the unfavorable impact of the appreciation of the U.S. dollar reflecting the high ratio of U.S. dollar-denominated costs, as well as the recording of an 11.2 billion yen (93 million U.S. dollars) write-down of PS Vita and PS TV components. This write-down was recorded because the latest forecast of PS TV unit sales does not reach our original forecast as a result of lower than expected unit sales in the current quarter. In the same quarter of the previous fiscal year, a 6.2 billion yen write-off of certain PC software titles was recorded.

Imaging Products & Solutions (IP&S)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014
Sales and operating revenue	¥	198.1	¥	201.0		+1.5	%	$	1,661

Operating income		12.1		23.0		+90.4			190

The IP&S segment includes the Digital Imaging Products and Professional Solutions categories. Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income of the IP&S segment of the comparable prior period have been reclassified to conform to the current presentation.

Sales increased 1.5% year-on-year (a 5% decrease on a constant currency basis) to 201.0 billion yen (1,661 million U.S. dollars), primarily due to the favorable impact of foreign exchange rates, partially offset by a significant decrease in unit sales of digital cameras*.

Operating income increased 10.9 billion yen year-on-year to 23.0 billion yen (190 million U.S. dollars). This significant increase was mainly due to a reduction in selling, general and administrative expenses and the favorable impact of foreign exchange rates, partially offset by the above-mentioned decrease in sales of digital cameras.

* Digital cameras includes compact digital cameras and interchangeable single-lens cameras.

Home Entertainment & Sound (HE&S)

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014
Sales and operating revenue	¥	404.0	¥	413.3		+2.3	%	$	3,416

Operating income		6.4		25.3		+294.6			209

The HE&S segment includes the Televisions and Audio and Video categories. Televisions includes LCD televisions; Audio and Video includes Blu-ray DiscTM players and recorders, home audio, headphones and memory-based portable audio devices.

Sales increased 2.3% year-on-year (a 5% decrease on a constant currency basis) to 413.3 billion yen (3,416 million U.S. dollars). This increase was primarily due to the favorable impact of foreign exchange rates and a significant increase in sales of televisions, partially offset by a decrease in Audio and Video sales. Unit sales of LCD televisions increased mainly due to a significant increase in North America and Europe, partially offset by a significant decrease in Latin America.

Operating income increased 18.9 billion yen year-on-year to 25.3 billion yen (209 million U.S. dollars). This increase was primarily due to cost reductions, partially offset by the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs.

In Televisions, sales increased 10.1% year-on-year to 280.6 billion yen (2,319 million U.S. dollars). This significant increase was primarily due to the above-mentioned increase in unit sales, and the favorable impact of foreign exchange rates. Operating income* of 9.3 billion yen (77 million U.S. dollars) was recorded, compared to an operating loss of 5.0 billion yen in the same quarter of the previous fiscal year. This improvement was primarily due to cost reductions, partially offset by the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs.

* The operating income (loss) in Televisions excludes restructuring charges, which are included in the overall segment results and are not allocated to product categories.

Devices

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013			2014		Change in yen			2014
Sales and operating revenue	¥	211.3		¥	292.9		+38.6	%	$	2,421

Operating income (loss)		(23.5	)		54.5		-			451

The Devices segment includes the Semiconductors and Components categories. Semiconductors includes image sensors; Components includes batteries, recording media and data recording systems. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating income of the Devices segment of the comparable prior period have been reclassified to conform to the current presentation.

Sales increased 38.6% year-on-year (a 26% increase on a constant currency basis) to 292.9 billion yen (2,421 million U.S. dollars). This significant increase was primarily due to a significant increase in sales of image sensors reflecting higher demand for mobile products, the favorable impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 47.2% year-on-year.

Operating income of 54.5 billion yen (451 million U.S. dollars) was recorded, compared to an operating loss of 23.5 billion yen in the same quarter of the previous fiscal year. This significant improvement was primarily due to the recording of a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the same quarter of the previous fiscal year, the above-mentioned increase in sales of image sensors, and the favorable impact of foreign exchange rates.

* * * * *

Total inventory of the five Electronics* segments above as of December 31, 2014 was 669.9 billion yen (5,536 million U.S. dollars), a decrease of 34.6 billion yen, or 4.9% year-on-year. Inventory decreased by 153.1 billion yen, or 18.6% compared with the level as of September 30, 2014.

* The term “Electronics” refers to the sum of the MC, G&NS, IP&S, HE&S and Devices segments.

In connection with the realignment made from the first quarter of the fiscal year ending March 31, 2015, total inventory of the five Electronics segments as of December 31, 2013 has been reclassified to conform to the presentation for the fiscal year ending March 31, 2015. For further details, please see Note on page 10.

* * * * *

Pictures

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014
Sales and operating revenue	¥	223.7	¥	206.6		-7.7	%	$	1,707

Operating income		24.3		6.2		-74.4			51

The Pictures segment is comprised of the Motion Pictures, Television Productions, and Media Networks categories. Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks.

The results presented in Pictures are a yen-translation of the results of Sony Pictures Entertainment Inc. (“SPE”), a U.S.-based operation that aggregates the results of its worldwide subsidiaries on a U.S. dollar basis. Management analyzes the results of SPE in U.S. dollars, so discussion of certain portions of its results is specified as being on “a U.S. dollar basis.”

Sales decreased 7.7% year-on-year (a 20% decrease on a constant currency (U.S. dollar) basis) to 206.6 billion yen (1,707 million U.S. dollars). The significant decrease in sales on a U.S. dollar basis was primarily due to a decrease in sales for Motion Pictures and Television Productions. The decrease in Motion Pictures sales was due to significantly lower home entertainment and theatrical revenues. The decrease in home entertainment revenues was due to fewer major home entertainment releases in the current quarter as compared to the same quarter of the previous fiscal year while theatrical revenues decreased due to the stronger worldwide performance of theatrical releases in the same quarter of the previous fiscal year. The decrease in Television Productions sales was due to the same quarter of the previous fiscal year benefitting from higher home entertainment and subscription video on demand (“SVOD”) revenues for the U.S. television series Breaking Bad.

Operating income decreased 18.0 billion yen year-on-year to 6.2 billion yen (51 million U.S. dollars) primarily due to the above-mentioned decrease in Motion Pictures and Television Productions sales. The current quarter includes approximately 15 million U.S. dollars (1.8 billion yen) in investigation and remediation costs relating to a cyberattack on SPE’s network and IT infrastructure which was identified in November, 2014 (“the cyberattack”).

Music

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014
Sales and operating revenue	¥	144.7	¥	163.6		+13.1	%	$	1,352

Operating income		21.7		25.4		+17.0			210

The Music segment is comprised of the Recorded Music, Music Publishing and Visual Media and Platform categories. Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

The results presented in Music include the yen-translated results of Sony Music Entertainment (“SME”), a U.S.-based operation which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis, the results of Sony Music Entertainment (Japan) Inc., a Japan-based music company which aggregates its results in yen, and the yen-translated consolidated results of Sony/ATV Music Publishing LLC (“Sony/ATV”), a 50% owned U.S.-based joint venture in the music publishing business which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis.

Sales increased 13.1% year-on-year (a 3% increase on a constant currency basis) to 163.6 billion yen (1,352 million U.S. dollars) primarily due to the favorable impact of the depreciation of the yen against the U.S. dollar and an increase in Recorded Music sales. Recorded Music sales increased on a constant currency basis due to the strong performance of several releases and higher digital streaming revenues. Best-selling titles included One Direction’s Four, AC/DC’s Rock or Bust, Pink Floyd’s The Endless River, Foo Fighters’ Sonic Highways and Garth Brooks’ Man Against Machine.

Operating income increased 3.7 billion yen year-on-year to 25.4 billion yen (210 million U.S. dollars). This increase was primarily due to the favorable impact of foreign exchange rates and the above-mentioned increase in Recorded Music sales.

Financial Services

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013		2014		Change in yen			2014
Financial services revenue	¥	282.1	¥	304.9		+8.1	%	$	2,520

Operating income		46.4		50.9		+9.7			420

The Financial Services segment results include Sony Financial Holdings Inc. (“SFH”) and SFH’s consolidated subsidiaries such as Sony Life Insurance Co., Ltd. (“Sony Life”), Sony Assurance Inc. and Sony Bank Inc. The results of Sony Life discussed in the Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

Certain figures for the fiscal year ended March 31, 2014 have been revised from the versions previously disclosed. For details, please see Note 8 on page F-19

Financial services revenue increased 8.1% year-on-year to 304.9 billion yen (2,520 million U.S. dollars) primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 8.2% year-on-year to 279.1 billion yen (2,307 million U.S. dollars) due to an increase in insurance premium revenue reflecting an increase in policy amount in force, as well as an improvement in investment performance.

Operating income increased 4.5 billion yen year-on-year to 50.9 billion yen (420 million U.S. dollars). This increase was mainly due to an increase in operating income at Sony Life. Operating income at Sony Life increased 2.9 billion yen year-on-year to 51.2 billion yen (423 million U.S. dollars) primarily due to an improvement in investment performance in the general account.

All Other

	(Billions of yen, millions of U.S. dollars)
	Third Quarter ended December 31
	2013			2014			Change in yen			2014
Sales and operating revenue	¥	270.6		¥	144.3			-46.7	%	$	1,193

Operating loss		(14.8	)		(14.3	)		-			(118	)

All Other includes the PC business. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating loss of All Other of the comparable prior period have been reclassified to conform to the current presentation.

Sales decreased 46.7% year-on-year to 144.3 billion yen (1,193 million U.S. dollars). This significant decrease was primarily due to a significant decrease in sales reflecting Sony’s exit from the PC business.

Operating loss decreased 0.5 billion yen year-on-year to 14.3 billion yen (118 million U.S. dollars). Operating loss was essentially flat year-on-year primarily due to a decrease in PC operating loss, partially offset by the deterioration of operating results in the disc manufacturing business. The following table provides PC exit costs and the total PC business operating loss. In the same quarter of the previous fiscal year, an 11.0 billion yen impairment charge related to long-lived assets in the PC business was recorded in PC exit costs.

		(Billions of yen, millions of U.S. dollars)
		Third quarter ended December 31, 2014
		All Other			Corporate and Elimination			Consolidated Total			Year-on-year change		Consolidated Total
(I)	Restructuring charges	¥	0.3		¥	1.1		¥	1.4		¥	-9.6	$	11
(II)	After-sales service expenses etc.		3.5			-			3.5			+3.5		29
PC exit costs (I+II)			3.8			1.1			4.9			-6.1		41
Operating loss excluding exit costs			(8.5	)		-			(8.5	)		+0.3		(70	)
Total PC operating loss		¥	(12.3	)	¥	(1.1	)	¥	(13.4	)	¥	+6.4	$	(111	)

* * * * *

Consolidated Results for the Nine Months ended December 31, 2014

For Conslidated Statements of Income and Business Segment Information for the nine months ended December 31, 2014 and 2013, please refer to pages F-3 and F-7 respectively.

Sales for the current nine months increased 6.5% year-on-year to 6,278.2 billion yen (51,886 million U.S. dollars). This increase was primarily due to a significant increase in sales in the G&NS, MC and Devices segments, and the favorable impact of foreign exchange rates, partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business.

During the current nine months, the average rates of the yen were 106.9 yen against the U.S. dollar and 140.3 yen against the euro, which were 7.0% lower and 5.7% lower, respectively, as compared with the same period in the previous fiscal year. On a constant currency basis, consolidated sales increased 2%. For further detail about sales on a constant currency basis, see Note on page 10.

In the MC segment, sales increased significantly primarily due to an improvement in product mix and the favorable impact of foreign exchange rates. In the G&NS segment, sales increased significantly primarily due to increases in PS4 hardware unit sales and network services revenues. In the IP&S segment, sales decreased primarily due to a decrease in sales of digital cameras. In the HE&S segment, sales increased primarily due to a significant increase in sales of televisions and the favorable impact of foreign exchange rates. In the Devices segment, sales increased significantly mainly due to an increase in sales of image sensors for mobile devices and the favorable impact of foreign exchange rates. In the Pictures segment, sales increased due to the favorable impact of the depreciation of the yen against the U.S. dollar, partially offset by lower Television Productions sales as the same period of the previous fiscal year benefitted from higher home entertainment and SVOD revenues for the U.S. television series Breaking Bad. In the Music segment, sales increased primarily due to the favorable impact of the depreciation of the yen against the U.S. dollar and an increase in Visual Media and Platform sales. In the Financial Services segment, revenue increased primarily due to higher insurance premiums revenue and an improvement in investment performance in the general account at Sony Life.

Operating income increased 28.0 billion yen year-on-year to 166.3 billion yen (1,375 million U.S. dollars) for the current nine months. This significant increase was primarily due to a significant improvement in the operating results of the Devices, G&NS, HE&S, and IP&S segments. The operating results in the MC segment deteriorated significantly primarily due to the recording of a 176.0 billion yen (1,615 million U.S. dollars) impairment of goodwill.

Operating income during the current nine months includes a net benefit of 6.2 billion yen (51 million U.S. dollars) from insurance recoveries related to damages and losses incurred from the floods in Thailand in the fiscal year ended March 31, 2012 (“the Floods”). The same period of the previous fiscal year included a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the Devices segments, a gain of 12.8 billion yen from the sale of certain shares of M3, Inc., a net benefit of 8.8 billion yen from insurance recoveries related to damages and losses incurred from the Floods and a benefit of 7.0 billion yen from the reversal of a patent royalty accrual.

In the MC segment, operating results significantly deteriorated year-on-year mainly due to the above-mentioned impairment charge recorded in this segment as well as the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs. In the G&NS segment, operating results improved significantly year-on-year primarily due to an increase in PS4 hardware and software sales. In the IP&S segment, operating income increased significantly year-on-year primarily due to a reduction in costs and an improvement in product mix reflecting a shift to high value-added models. In the HE&S segment, operating income was recorded compared to a loss in the same period of the previous fiscal year primarily due to cost reductions and an improvement in product mix reflecting a shift to high value-added models. In the Devices segment, operating results improved significantly mainly due to the recording of a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the same period of the previous fiscal year and the increase in sales of image sensors. In the Pictures segment, operating income increased primarily due to the stronger performance of the current fiscal year’s film release slate as the previous fiscal year reflected the theatrical underperformance of White House Down and After Earth, partially offset by the gain recognized on the sale of SPE’s music publishing catalog in the same period of the previous fiscal year, higher programming costs for Sony’s television networks in India, and the above mentioned decrease in Television Productions sales. In the Music segment, operating income increased primarily due to the favorable impact of foreign exchange rates and a shift in Recorded Music to digital streaming revenues. In the Financial Services segment, operating income increased primarily due to an improvement in investment performance in the general account at Sony Life.

Restructuring charges, recorded as operating expenses, amounted to 33.7 billion yen (279 million U.S. dollars) for the current nine months compared to 26.1 billion yen for the same period of the previous fiscal year.

Equity in net income of affiliated companies, recorded within operating income, was 3.7 billion yen (31 million U.S. dollars), compared to a loss of 0.8 billion yen in the same period of the previous fiscal year. This improvement was mainly due to an improvement of equity in net income (loss) for Intertrust Technologies Corporation.

The net effect of other income and expenses was an expense of 20.1 billion yen (166 million U.S. dollars), compared to income of 0.5 billion yen in the same period of the previous fiscal year. This deterioration was mainly due to an increase in foreign exchange loss, net and a decrease in the gain on sales of securities investments. In the same period of the previous fiscal year, a 7.4 billion yen gain on the sale of Sony’s share in SKY Perfect JSAT Holdings Inc. was recorded.

Income before income taxes increased by 7.4 billion yen year-on-year to 146.3 billion yen (1,209 million U.S. dollars).

Income taxes: During the current nine months, Sony recorded 112.3 billion yen (928 million U.S. dollars) of income tax expense, and Sony’s effective tax rate exceeded the Japanese statutory tax rate. This is primarily due to nondeductible goodwill impairments recorded during the current nine months.

Net loss attributable to Sony Corporation’s stockholders for the current nine months was 19.2 billion yen (159 million U.S. dollars) compared to income of 9.9 billion yen in the same period of the previous fiscal year.

* * * * *

Cash Flows

For Consolidated Statements of Cash Flows, charts showing Sony’s cash flow information for all segments, all segments excluding the Financial Services segment and the Financial Services segment alone, please refer to pages F-5 and F-17.

In the Financial Services segment, certain figures for the fiscal year ended March 31, 2014 have been revised from the versions previously disclosed. For further details, please see Note 8 on page F-19.

Operating Activities: During the current nine months, there was a net cash inflow of 382.9 billion yen (3,165 million U.S. dollars) from operating activities, an increase of 139.4 billion yen, or 57.3% year-on-year.

For all segments excluding the Financial Services segment, there was a net cash inflow of 112.5 billion yen (931 million U.S. dollars) for the current nine months, compared to a net cash outflow of 10.8 billion yen in the same period of the previous fiscal year. The net cash inflow was primarily due to the positive impact of a year-on-year improvement in net income after taking into account non-cash adjustments (including depreciation and amortization, other operating expenses, net, deferred income taxes and equity in net loss of affiliated companies). In addition, there was the positive impact of a decrease in inventories, compared to an increase in the same period of the previous fiscal year, and a smaller increase in other receivables from component assembly companies, included in other current assets, partially offset by the negative impact of a smaller year-on-year increase in notes and accounts payable, trade.

The Financial Services segment had a net cash inflow of 278.2 billion yen (2,300 million U.S. dollars), an increase of 17.2 billion yen, or 6.6% year-on-year. This increase was primarily due to an increase of insurance premium revenue in line with a growing policy amount in force at Sony Life.

Investing Activities: During the current nine months, Sony used 363.8 billion yen (3,007 million U.S. dollars) of net cash in investing activities, a decrease of 73.0 billion yen, or 16.7% year-on-year.

For all segments excluding the Financial Services segment, there was a 46.7 billion yen (386 million U.S. dollars) net cash outflow, an increase of 0.5 billion yen, or 1.2% year-on-year. This increase was primarily due to a year-on-year decrease in proceeds from the sales of fixed assets and investment securities. Sales of fixed assets and investment securities in the current nine months included the intersegment sale of Sony Corporation’s headquarters’ land to Sony Life, the sale of certain buildings and premises at the Gotenyama Technology Center and the sale of Sony’s shares in SQUARE ENIX HOLDINGS CO., LTD.

The Financial Services segment used 317.1 billion yen (2,621 million U.S. dollars) of net cash, a decrease of 73.6 billion yen, or 18.8% year-on-year. This decrease was mainly due to a decrease in payments for investments and advances at Sony Life and a year-on-year increase in proceeds from the sale of investment securities. This decrease was partially offset by the negative impact of the intersegment purchase of Sony Corporation’s headquarters’ land by Sony Life, which is eliminated in the consolidated financial statements.

In all segments excluding the Financial Services segment, net cash generated in operating and investing activities combined*1 for the current nine months was 65.9 billion yen (544 million U.S. dollars), a 122.8 billion yen improvement from cash used in the same period of the previous fiscal year.

Financing Activities: During the current nine months, 184.6 billion yen (1,525 million U.S. dollars) of net cash and cash equivalents was used in financing activities, compared to 151.0 billion yen of net cash and cash equivalents provided in the same period of the previous fiscal year.

For all segments excluding the Financial Services segment, there was a 281.5 billion yen (2,327 million U.S. dollars) net cash outflow, an increase of 256.8 billion yen, or 1,041% year-on-year. This increase was primarily due to an issuance of straight bonds for Japanese retail investors in the same period of the previous fiscal year and a year-on-year increase in repayments of long-term debt, net.

In the Financial Services segment, financing activities provided 89.1 billion yen (736 million U.S. dollars) of net cash, a decrease of 79.9 billion yen, or 47.3% year-on-year. This decrease was mainly due to a smaller increase in customer deposits at Sony Life, compared to the figure in the same period of the previous fiscal year.

Total Cash and Cash Equivalents: Accounting for the above factors and the effect of fluctuations in foreign exchange rates, the total outstanding balance of cash and cash equivalents at December 31, 2014 was 933.5 billion yen (7,715 million U.S. dollars). Cash and cash equivalents of all segments excluding the Financial Services segment was 642.9 billion yen (5,314 million U.S. dollars) at December 31, 2014, an increase of 34.6 billion yen, or 5.7% compared with the balance as of December 31, 2013, and a decrease of 163.2 billion yen, or 20.2% compared with the balance as of March 31, 2014. Sony believes that it continues to maintain sufficient liquidity through access to a total, translated into yen, of 775.0 billion yen (6,405 million U.S. dollars) of unused committed lines of credit with financial institutions in addition to the cash and cash equivalents balance at December 31, 2014. Within the Financial Services segment, the outstanding balance of cash and cash equivalents was 290.6 billion yen (2,401 million U.S. dollars) at December 31, 2014, an increase of 49.6 billion yen, or 20.6% compared with the balance as of December 31, 2013, and an increase of 50.2 billion yen, or 20.9% compared with the balance as of March 31, 2014.

Sony has included the information for cash flow from operating and investing activities combined, excluding the Financial Services segment’s activities, as Sony’s management frequently monitors this financial measure, and believes this non-U.S. GAAP measurement is important for use in evaluating Sony’s ability to generate cash to maintain liquidity and fund debt principal and dividend payments from business activities other than its Financial Services segment. This information is derived from the reconciliations prepared in the Condensed Statements of Cash Flows on page F-17. This information and the separate condensed presentations shown below are not required or prepared in accordance with U.S. GAAP. The Financial Services segment’s cash flow is excluded from the measure because SFH, which constitutes a majority of the Financial Services segment, is a separate publicly traded entity in Japan with a significant minority interest and it, as well as its subsidiaries, secure liquidity on their own. This measure may not be comparable to those of other companies. This measure has limitations because it does not represent residual cash flows available for discretionary expenditures principally due to the fact that the measure does not deduct the principal payments required for debt service. Therefore, Sony believes it is important to view this measure as supplemental to its entire statement of cash flows and together with Sony’s disclosures regarding investments, available credit facilities and overall liquidity.

A reconciliation of the differences between the Consolidated Statement of Cash Flows reported and cash flows from operating and investing activities combined excluding the Financial Services segment’s activities is as follows:

	(Billions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2013			2014			2014

Net cash provided operating activities reported in the consolidated statements of cash flows	¥	243.5		¥	382.9		$	3,165
Net cash used in investing activities reported in the consolidated statements of cash flows		(436.8	)		(363.8	)		(3,007	)
		(193.3	)		19.1			158

Less: Net cash provided by operating activities within the Financial Services segment		261.0			278.2			2,300
Less: Net cash used in investing activities within the Financial Services segment		(390.7	)		(317.1	)		(2,621	)
Eliminations *2		6.6			7.9			66

Cash flow generated (used) in operating and investing activities combined excluding the Financial Services segment’s activities	¥	(57.0	)	¥	65.9		$	545

*2	Eliminations primarily consist of intersegment dividend payments.

* * * * *

Note

Sony realigned its business segments from the first quarter of the fiscal year ending March 31, 2015 to reflect modifications to its organizational structure as of April 1, 2014, primarily repositioning the operations of the previously reported Game and Mobile Products & Communications (“MP&C”) segments. In connection with this realignment, the previously reported operations of the network business which were included in All Other have been integrated with the previously reported Game segment and are now reported as the G&NS segment. The previously reported Mobile Communications category, which was included in the MP&C segment, has been reclassified as the newly established MC segment, while the other categories in the previously reported MP&C segment are now included in All Other. This includes the reclassification of the PC business into All Other.

In addition, as of the first quarter of the fiscal year ending March 31, 2015, the power supply business, which was previously included in the Devices segment, has been integrated into All Other to reflect modifications Sony made to its organizational structure as of June 1, 2014.

In connection with these realignments, the sales and operating income (loss) of each segment in the fiscal year ended March 31, 2014 have been reclassified to conform to the presentation of the fiscal year ending March 31, 2015.

Certain figures for the fiscal year ended March 31, 2014 related to the Financial Services segment have been revised from the versions previously disclosed.

The descriptions of sales on a constant currency basis reflect sales obtained by applying the yen’s monthly average exchange rates from the same quarter of the previous fiscal year to local currency-denominated monthly sales in the current quarter. In certain cases, most significantly in the Pictures segment and SME and Sony/ATV in the Music segment, the constant currency amounts are after aggregation on a U.S. dollar basis. Sales on a constant currency basis are not reflected in Sony’s consolidated financial statements and are not measures in accordance with U.S. GAAP. Sony does not believe that these measures are a substitute for U.S. GAAP measures. However, Sony believes that disclosing sales information on a constant currency basis provides additional useful analytical information to investors regarding the operating performance of Sony.

* * * * *

Outlook for the Fiscal Year ending March 31, 2015

Sony has not updated its forecast for consolidated results as announced on February 4, 2015 as per below.

	(Billions of yen)
	February Forecast			October Forecast			March 31, 2014 Actual Results				Change from October Forecast			Change from March 31, 2014 Actual Results
Sales and operating revenue	¥	8,000		¥	7,800		¥	7,767.3			+2.6	%		+3.0	%
Operating income (loss)		20			(40	)		26.5		¥	+60	bil	¥	-6.5	bil
Income (loss) before income taxes		(5	)		(50	)		25.7		¥	+45	bil	¥	-30.7	bil
Net loss attributable to Sony Corporation’s stockholders		(170	)		(230	)		(128.4	)	¥	+60	bil	¥	-41.6	bil

Assumed foreign currency exchange rates for the remainder of the fiscal year ending March 31, 2015: approximately 118 yen to the U.S. dollar and approximately 133 yen to the euro. (However, the forecasts for the segments below have been calculated using the assumed foreign currency rates of approximately 120 yen to the U.S. dollar and approximately 144 yen to the euro. Due to the recent volatility in foreign exchange rates, the assumed foreign currency exchange rates were revised after the individual segments had already completed their updated forecasts. Accordingly, the impact of the difference between the latest rates and the assumed rates has been included in the forecast for All Other.) (Assumed foreign currency exchange rates for the remainder of the fiscal year ending March 31, 2015 at the time of the October forecasts: approximately 110 yen to the U.S. dollar and approximately 138 yen to the euro.)

Costs related to the exit from the PC business and other strategic management initiatives are expected to be approximately 335 billion yen for the Sony Group, an increase of 24 billion yen above the October forecast. Such costs in the previous fiscal year were 177.4 billion yen. The above costs have been incorporated into the consolidated operating income forecast as an operating expense. Of the above costs, approximately 110 billion yen is expected to be recorded as restructuring charges, an increase of 25 billion yen compared to the October forecast (restructuring charges in the previous fiscal year were 80.6 billion yen).

Sony believes that the impact of the cyberattack on its consolidated results for the fiscal year ending March 31, 2015 will not be material.

Sony has not updated its forecast for each business segment as announced on February 4, 2015 as per below.

	(Billions of yen)									Change - February Forecast vs.
	February Forecast			October Forecast			March 31, 2014 Results			October Forecast			March 31, 2014 Results
Mobile Communications
Sales and operating revenue	¥	1,320		¥	1,350		¥	1,191.8			- 2.2	%		+10.8	%
Operating income (loss)		(215	)		(204	)		12.6		¥	-11	bil	¥	-227.6	bil
Game & Network Services
Sales and operating revenue		1,380			1,290			1,043.9			+7.0	%		+32.2	%
Operating income (loss)		40			35			(18.8	)	¥	+5	bil	¥	+58.8	bil
Imaging Products & Solutions
Sales and operating revenue		710			710			741.2			-			-4.2	%
Operating income		53			52			26.3		¥	+1	bil	¥	¥ +26.7l	bil
Home Entertainment & Sound
Sales and operating revenue		1,210			1,200			1,168.6			+0.8	%		+3.5	%
Operating income (loss)		13			10			(25.5	)	¥	+3	bil	¥	+38.5	bil
Devices
Sales and operating revenue		950			890			773.0			+6.7	%		+22.9	%
Operating income (loss)		100			67			(12.4	)	¥	+33	bil	¥	+112.4	bil
Pictures
Sales and operating revenue		890			860			829.6			+3.5	%		+7.3	%
Operating income		54			58			51.6		¥	-4	bil	¥	+2.4	bil
Music
Sales and operating revenue		520			510			503.3			+2.0	%		+3.3	%
Operating income		53			50			50.2		¥	+3	bil	¥	+2.8	bil
Financial Services
Financial services revenue		1,050			1,000			993.8			+5.0	%		+5.7	%
Operating income		178			164			170.3		¥	+14	bil	¥	+7.7	bil
All Other, Corporate and Elimination
Operating loss		(256	)		(272	)		(227.8	)	¥	+16	bil	¥	-28.2	bil
Consolidated
Sales and operating revenue		8,000			7,800			7,767.3			+2.6	%		+3.0	%
Operating income (loss)		20			(40	)		26.5		¥	+60	bil	¥	-6.5	bil

Mobile Communications

Sales are expected to be below the October forecast primarily due to an expected decrease in unit sales of smartphones mainly in the Asia Pacific region, partially offset by the favorable impact of foreign exchange rates. Operating loss is expected to be larger than the October forecast primarily due to the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs in the segment and the impact of the above-mentioned decrease in sales, partially offset by an expectation that average selling prices will be maintained longer than anticipated at the time of the October forecast.

Game & Network Services

Sales are expected to be higher than the October forecast primarily due to an expected increase in unit sales of the PS4, an expected increase in network services revenue and the favorable impact of foreign exchange rates. Operating income is expected to be above the October forecast primarily due to the above-mentioned increase in sales, partially offset by the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs in the segment.

Imaging Products & Solutions

Sales are expected to remain unchanged from the October forecast. Operating income is expected to be above the October forecast primarily due to the favorable impact of foreign exchange rates and cost reductions.

Home Entertainment & Sound

Sales are expected to be higher than the October forecast mainly due to the favorable impact of foreign exchange rates. Operating income is expected to be higher than the October forecast mainly due to cost reductions in Audio and Video.

Devices

Sales are expected to be higher than the October forecast primarily due to an anticipated increase in sales of image sensors and the favorable impact of foreign exchange rates. Operating income is expected to be higher than the October forecast primarily due to the above-mentioned increase in sales and the favorable impact of foreign exchange rates.

Pictures

Sales are expected to be higher than the October forecast primarily due to the favorable impact of the depreciation of the yen against the U.S. dollar. Operating income is expected to be lower than the October forecast primarily due to lower Media Networks advertising revenues as well as investigation and remediation costs relating to the cyberattack.

Music

Sales are expected to be higher than the October forecast primarily due to the favorable impact of foreign exchange rates. Operating income is expected to be higher that the October forecast primarily due to the favorable impact of foreign exchange rates and an increase in Recorded Music sales in Japan.

Financial Services

Financial services revenue and operating income are expected to exceed the October forecast because results in the current quarter exceeded expectations. Year-on-year, financial services revenue and operating income are expected to increase.

The effects of future gains and losses on investments held by the Financial Services segment due to market fluctuations have not been incorporated within the above forecast as it is difficult for Sony to predict market trends in the future. Accordingly, future market fluctuations could further impact the current forecast.

Sony has not updated its forecast for capital expenditures, depreciation and amortization, as well as research and development expenses for the current fiscal year as announced on February 4, 2015 as per below.

Consolidated

	(Billions of yen)						Change - February Forecast vs.
	February Forecast		October Forecast		March 31, 2014 Results		October Forecast			March 31, 2014 Results
Capital expenditures*	¥	285	¥	295	¥	261.0		-3.4	%		+9.2	%
[additions to property, plant and equipment (included above)		195		195		164.6		-			+18.5	]
[additions to intangible assets (included above) *		90		100		96.4		-10.0			-6.7	]
Depreciation and amortization**		350		355		376.7		-1.4			-7.1
[for property, plant and equipment (included above)		170		170		195.8		-			-13.2	]
[for intangible assets (included above)		180		185		135.7		-2.7			+32.7	]
Research and development expenses		480		485		466.0		-1.0			+3.0

* Does not include the increase in intangible assets resulting from business acquisitions.

** The forecast for depreciation and amortization includes amortization expenses for deferred insurance acquisition costs.

Sony without Financial Services

	(Billions of yen)						Change - February Forecast vs.
	February Forecast		October Forecast		March 31, 2014 Results		October Forecast			March 31, 2014 Results
Capital expenditures*	¥	274	¥	284	¥	250.8		-3.5	%		+9.3	%
[additions to property, plant and equipment (included above)		193		193		161.4		-			+19.6	]
[additions to intangible assets (included above) *		81		91		89.4		-11.0			-9.4	]
Depreciation and amortization		291		293		322.3		-0.7			-9.7
[for property, plant and equipment (included above)		169		169		194.9		-			-13.3	]
[for intangible assets (included above)		122		124		127.4		-1.6			-4.3	]

* Does not include the increase in intangible assets resulting from business acquisitions.

This forecast is based on management’s current expectations and is subject to uncertainties and changes in circumstances. Actual results may differ materially from those included in this forecast due to a variety of factors. See “Cautionary Statement” below.

Cautionary Statement

Statements made in this release with respect to Sony’s 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,” “intend,” “seek,” “may,” “might,” “could” or “should,” 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 management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors 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 investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking 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 and the economic conditions in Sony’s markets, particularly levels of consumer spending;

(ii)	foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets and liabilities are denominated;

(iii)

Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including televisions, game platforms and smartphones, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing consumer preferences;

(iv)	Sony’s ability and timing to recoup large-scale investments required for technology development and production capacity;

(v)	Sony’s ability to implement successful business restructuring and transformation efforts under changing market conditions;

(vi)	Sony’s ability to implement successful hardware, software, and content integration strategies for all segments excluding the Financial Services segment, and to develop and implement successful sales and distribution strategies in light of the Internet and other technological developments;

(vii)

Sony’s continued ability to devote sufficient resources to research and development and, with respect to capital expenditures, to prioritize investments correctly (particularly in the electronics businesses);

(viii)

Sony’s ability to maintain product quality;

(ix)	the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures and other strategic investments;

(x)	significant volatility and disruption in the global financial markets or a ratings downgrade;

(xi)	Sony’s ability to forecast demands, manage timely procurement and control inventories;

(xii)

the outcome of pending and/or future legal and/or regulatory proceedings;

(xiii)

shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment;

(xiv)

the impact of unfavorable conditions or developments (including market fluctuations or volatility) in the Japanese equity markets on the revenue and operating income of the Financial Services segment;

(xv)	Sony’s effort to anticipate and manage cybersecurity risk, including the risk of potential business disruptions or financial losses; and

(xvi)

risks related to catastrophic disasters or similar events.

Risks and uncertainties also include the impact of any future events with material adverse impact.

Investor Relations Contacts:

Tokyo	New York	London
Atsuko Murakami	Justin Hill	Haruna Nagai
+81-(0)3-6748-2111	+1-212-833-6722	+44-(0)19-3281-6000

IR home page: http://www.sony.net/IR/

Presentation slides: http://www.sony.net/SonyInfo/IR/financial/fr/14q3_sonypre.pdf

(Unaudited)
Consolidated Financial Statements
Consolidated Balance Sheets
	(Millions of yen, millions of U.S. dollars)
	March 31			December 31			Change from		December 31
ASSETS	2014			2014			March 31, 2014		2014
Current assets:
Cash and cash equivalents	¥	1,046,466		¥	933,498		¥	-112,968	$	7,715
Marketable securities		832,566			943,188			+110,622		7,795
Notes and accounts receivable, trade		946,553			1,392,582			+446,029		11,509
Allowance for doubtful accounts and sales returns		(75,513	)		(105,938	)		-30,425		(876	)
Inventories		733,943			781,504			+47,561		6,459
Other receivables		224,630			263,847			+39,217		2,181
Deferred income taxes		53,068			54,985			+1,917		454
Prepaid expenses and other current assets		443,173			522,583			+79,410		4,319
Total current assets		4,204,886			4,786,249			+581,363		39,556

Film costs		275,799			338,354			+62,555		2,796

Investments and advances:
Affiliated companies		181,263			181,988			+725		1,504
Securities investments and other		7,737,748			8,127,555			+389,807		67,170
		7,919,011			8,309,543			+390,532		68,674

Property, plant and equipment:
Land		125,890			127,005			+1,115		1,050
Buildings		674,841			705,432			+30,591		5,830
Machinery and equipment		1,705,774			1,793,587			+87,813		14,823
Construction in progress		39,771			36,114			-3,657		298
		2,546,276			2,662,138			+115,862		22,001
Less-Accumulated depreciation		1,796,266			1,900,517			+104,251		15,707
		750,010			761,621			+11,611		6,294

Other assets:
Intangibles, net		675,663			672,331			-3,332		5,556
Goodwill		691,803			567,713			-124,090		4,692
Deferred insurance acquisition costs		497,772			520,497			+22,725		4,302
Deferred income taxes		105,442			86,621			-18,821		716
Other		213,334			234,418			+21,084		1,938
		2,184,014			2,081,580			-102,434		17,204
Total assets	¥	15,333,720		¥	16,277,347		¥	+943,627	$	134,524


LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	111,836		¥	159,220		¥	+47,384	$	1,316
Current portion of long-term debt		265,918			174,748			-91,170		1,444
Notes and accounts payable, trade		712,829			790,698			+77,869		6,535
Accounts payable, other and accrued expenses		1,175,413			1,386,071			+210,658		11,455
Accrued income and other taxes		81,842			174,246			+92,404		1,440
Deposits from customers in the banking business		1,890,023			1,863,644			-26,379		15,402
Other		545,753			623,670			+77,917		5,154
Total current liabilities		4,783,614			5,172,297			+388,683		42,746

Long-term debt		916,648			716,489			-200,159		5,921
Accrued pension and severance costs		284,963			285,524			+561		2,360
Deferred income taxes		410,896			446,132			+35,236		3,687
Future insurance policy benefits and other		3,824,572			4,046,188			+221,616		33,440
Policyholders’ account in the life insurance business		2,023,472			2,218,027			+194,555		18,331
Other		302,299			313,237			+10,938		2,589
Total liabilities		12,546,464			13,197,894			+651,430		109,074

Redeemable noncontrolling interest		4,115			5,297			+1,182		44

Equity:
Sony Corporation’s stockholders’ equity:
Common stock		646,654			700,906			+54,252		5,793
Additional paid-in capital		1,127,090			1,179,452			+52,362		9,748
Retained earnings		940,262			920,615			-19,647		7,608
Accumulated other comprehensive income		(451,585	)		(315,411	)		+136,174		(2,607	)
Treasury stock, at cost		(4,284	)		(4,184	)		+100		(35	)
		2,258,137			2,481,378			+223,241		20,507

Noncontrolling interests		525,004			592,778			+67,774		4,899
Total equity		2,783,141			3,074,156			+291,015		25,406
Total liabilities and equity	¥	15,333,720		¥	16,277,347		¥	+943,627	$	134,524

F-1

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
	Three months ended December 31
	2013		2014			Change from 2013			2014
Sales and operating revenue:
Net sales	¥	2,098,930	¥	2,239,485					$	18,508
Financial services revenue		280,833		303,211						2,506
Other operating revenue		30,926		24,053						199
		2,410,689		2,566,749			+6.5	%		21,213

Costs and expenses:
Cost of sales		1,585,927		1,659,261						13,714
Selling, general and administrative		458,814		473,282						3,911
Financial services expenses		233,791		251,375						2,077
Other operating expense, net		44,956		608						5
		2,323,488		2,384,526			+2.6			19,707

Equity in net income (loss) of affiliated companies		1,669		(128	)	–				(1	)

Operating income		88,870		182,095			+104.9			1,505

Other income:
Interest and dividends		1,637		3,408						28
Gain on sale of securities investments, net		7,428		1,042						9
Other		1,858		10						0
		10,923		4,460			-59.2			37

Other expenses:
Interest		4,232		5,942						49
Foreign exchange loss, net		4,747		10,607						88
Other		2,507		2,178						18
		11,486		18,727			+63.0			155

Income before income taxes		88,307		167,828			+90.1			1,387

Income taxes		45,584		56,162						464

Net income		42,723		111,666			+161.4			923

Less - Net income attributable to noncontrolling interests		16,341		21,695						179

Net income attributable to Sony Corporation’s
stockholders	¥	26,382	¥	89,971			+241.0	%	$	744



Per share data:
Net income attributable to Sony Corporation’s
stockholders
— Basic	¥	25.43	¥	78.12			+207.2	%	$	0.65
— Diluted		22.58		76.96			+240.8			0.64

Consolidated Statements of Comprehensive Income
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
		2013			2014		Change from 2013				2014

Net income	¥	42,723		¥	111,666			+161.4	%	$	923

Other comprehensive income, net of tax –
Unrealized gains on securities		10,126			34,324						284
Unrealized losses on derivative instruments		(201	)	–						－
Pension liability adjustment		(3,527	)		(752	)					(6	)
Foreign currency translation adjustments		131,298			75,051						620
Total comprehensive income		180,419			220,289			+22.1			1,821

Less - Comprehensive income attributable
to noncontrolling interests		19,563			33,754						279

Comprehensive income attributable to Sony Corporation’s
stockholders	¥	160,856		¥	186,535			+16.0	%	$	1,542

F-2

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
	Nine months ended December 31
	2013			2014			Change from 2013			2014
Sales and operating revenue:
Net sales	¥	5,048,906		¥	5,385,450					$	4,508
Financial services revenue		773,498			817,153						6,753
Other operating revenue		73,939			75,565						625
		5,896,343			6,278,168			+6.5	%		51,886

Costs and expenses:
Cost of sales		3,839,922			3,978,983						32,885
Selling, general and administrative		1,256,185			1,302,932						10,768
Financial services expenses		641,684			673,884						5,569
Other operating expense, net		19,475			159,750						1,320
		5,757,266			6,115,549			+6.2			50,542

Equity in net income (loss) of affiliated companies		(781	)		3,702			–			31

Operating income		138,296			166,321			+20.3			1,375

Other income:
Interest and dividends		11,081			9,160						76
Gain on sale of securities investments, net		8,044			8,628						71
Other		11,229			2,092						17
		30,354			19,880			-34.5			164

Other expenses:
Interest		18,280			18,401						152
Foreign exchange loss, net		4,300			15,175						125
Other		7,241			6,375						53
		29,821			39,951			+34.0			330

Income before income taxes		138,829			146,250			+5.3			1,209

Income taxes		83,391			112,286						928

Net income		55,438			33,964			-38.7			281

Less - Net income attributable to noncontrolling interests		45,560			53,154						440

Net income (loss) attributable to Sony Corporation’s
stockholders	¥	9,878		¥	(19,190	)		–	%	$	(159	)



Per share data:
Net income (loss) attributable to Sony Corporation’s
stockholders
— Basic	¥	9.66		¥	(17.50	)		–	%	$	(0.14	)
— Diluted		8.45			(17.50	)		–			(0.14	)

Consolidated Statements of Comprehensive Income
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
		2013			2014		Change from 2013				2014

Net income	¥	55,438		¥	33,964			-38.7	%	$	281

Other comprehensive income, net of tax –
Unrealized gains on securities		12,672			49,390						408
Unrealized gains on derivative instruments		394		–						–
Pension liability adjustment		(6,711	)		(2	)					(0	)
Foreign currency translation adjustments		195,093			105,768						874

Total comprehensive income		256,886			189,120			-26.4			1,563

Less - Comprehensive income attributable
to noncontrolling interests		45,162			72,136						596

Comprehensive income attributable to Sony Corporation’s
stockholders	¥	211,724		¥	116,984			-44.7	%	$	967

F-3

Supplemental equity and comprehensive income information
	(Millions of yen, millions of U.S. dollars)
	Sony Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2013	¥	2,192,262		¥	479,742		¥	2,672,004
Exercise of stock acquisition rights		100						100
Conversion of zero coupon convertible bonds		25,520						25,520
Stock based compensation		689						689

Comprehensive income:
Net income		9,878			45,560			55,438
Other comprehensive income, net of tax –
Unrealized gains (losses) on securities		14,122			(1,450	)		12,672
Unrealized gains on derivative instruments		394						394
Pension liability adjustment		(6,723	)		12			(6,711	)
Foreign currency translation adjustments		194,053			1,040			195,093
Total comprehensive income		211,724			45,162			256,886

Dividends declared		(12,970	)		(11,837	)		(24,807	)
Transactions with noncontrolling interests shareholders and other		713			(781	)		(68	)
Balance at December 31, 2013	¥	2,418,038		¥	512,286		¥	2,930,324

Balance at March 31, 2014	¥	2,258,137		¥	525,004		¥	2,783,141
Exercise of stock acquisition rights		703						703
Conversion of zero coupon convertible bonds		107,660						107,660
Stock based compensation		845						845

Comprehensive income:
Net income (loss)		(19,190	)		53,154			33,964
Other comprehensive income, net of tax –
Unrealized gains on securities		33,778			15,612			49,390
Pension liability adjustment		44			(46	)		(2	)
Foreign currency translation adjustments		102,352			3,416			105,768
Total comprehensive income		116,984			72,136			189,120

Dividends declared					(13,075	)		(13,075	)
Transactions with noncontrolling interests shareholders and other		(2,951	)		8,713			5,762
Balance at December 31, 2014	¥	2,481,378		¥	592,778		¥	3,074,156


	Sony Corporation’s stockholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2014	$	18,663		$	4,339		$	23,002
Exercise of stock acquisition rights		7						7
Conversion of zero coupon convertible bonds		890						890
Stock based compensation		7						7

Comprehensive income:
Net income (loss)		(159	)		440			281
Other comprehensive income, net of tax –
Unrealized gains on securities		279			129			408
Pension liability adjustment		0			(0	)		(0	)
Foreign currency translation adjustments		847			27			874
Total comprehensive income		967			596			1,563

Dividends declared					(108	)		(108	)
Transactions with noncontrolling interests shareholders and other		(27	)		72			45
Balance at December 31, 2014	$	20,507		$	4,899		$	25,406

F-4

Consolidated Statements of Cash Flows
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2013			2014			2014
Cash flows from operating activities:
Net income	¥	55,438		¥	33,964		$	281
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization, including amortization of deferred
insurance acquisition costs		277,752			251,080			2,075
Amortization of film costs		191,773			190,892			1,578
Stock-based compensation expense		842			909			8
Accrual for pension and severance costs, less payments		(5,914	)		(7,694	)		(64	)
Other operating expense, net		19,475			159,750			1,320
Gain on sale or devaluation of securities investments, net		(7,930	)		(8,193	)		(68	)
Gain on revaluation of marketable securities held in the financial
services business for trading purposes, net		(82,837	)		(88,299	)		(730	)
Gain on revaluation or impairment of securities investments held
in the financial services business, net		(5,606	)		(2,363	)		(20	)
Deferred income taxes		(16,436	)		16,585			137
Equity in net loss of affiliated companies, net of dividends		2,647			1,633			13
Changes in assets and liabilities:
Increase in notes and accounts receivable, trade		(338,694	)		(318,401	)		(2,631	)
(Increase) decrease in inventories		(77,988	)		20,366			168
Increase in film costs		(218,943	)		(205,190	)		(1,696	)
Increase in notes and accounts payable, trade		263,032			34,943			289
Increase in accrued income and other taxes		54,887			46,113			381
Increase in future insurance policy benefits and other		323,244			355,114			2,935
Increase in deferred insurance acquisition costs		(58,240	)		(58,352	)		(482	)
Increase in marketable securities held in the financial services
business for trading purposes		(24,049	)		(40,051	)		(331	)
Increase in other current assets		(123,873	)		(33,385	)		(276	)
Increase in other current liabilities		86,985			124,037			1,025
Other		(72,057	)		(90,526	)		(747	)
Net cash provided by operating activities		243,508			382,932			3,165

Cash flows from investing activities:
Payments for purchases of fixed assets		(214,335	)		(145,813	)		(1,205	)
Proceeds from sales of fixed assets		93,370			31,631			261
Payments for investments and advances by financial services business		(729,272	)		(678,116	)		(5,604	)
Payments for investments and advances
(other than financial services business)		(11,047	)		(13,951	)		(115	)
Proceeds from sales or return of investments and collections of advances
by financial services business		345,697			417,799			3,453
Proceeds from sales or return of investments and collections of advances
(other than financial services business)		63,514			37,096			307
Other		15,265			(12,436	)		(104	)
Net cash used in investing activities		(436,808	)		(363,790	)		(3,007	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		179,225			15,203			126
Payments of long-term debt		(148,877	)		(243,652	)		(2,014	)
Increase in short-term borrowings, net		19,917			43,353			358
Increase in deposits from customers in the financial services business, net		166,329			30,605			253
Dividends paid		(25,604	)		(13,106	)		(108	)
Other		(39,952	)		(16,978	)		(140	)
Net cash provided by (used in) financing activities		151,038			(184,575	)		(1,525	)

Effect of exchange rate changes on cash and cash equivalents		65,149			52,465			434

Net increase (decrease) in cash and cash equivalents		22,887			(112,968	)		(933	)
Cash and cash equivalents at beginning of the fiscal year		826,361			1,046,466			8,648

Cash and cash equivalents at end of the period	¥	849,248		¥	933,498		$	7,715

F-5

Business Segment Information
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue	2013			2014			Change			2014
Mobile Communications
Customers	¥	333,277		¥	428,956			+28.7	%	$	3,545
Intersegment		(39	)		25						0
Total		333,238			428,981			+28.7			3,545

Game & Network Services
Customers		417,043			499,242			+19.7			4,126
Intersegment		37,894			32,295						267
Total		454,937			531,537			+16.8			4,393

Imaging Products & Solutions
Customers		197,196			200,429			+1.6			1,656
Intersegment		867			612						5
Total		198,063			201,041			+1.5			1,661

Home Entertainment & Sound
Customers		403,741			412,744			+2.2			3,411
Intersegment		287			562						5
Total		404,028			413,306			+2.3			3,416

Devices
Customers		157,399			231,696			+47.2			1,915
Intersegment		53,858			61,188						506
Total		211,257			292,884			+38.6			2,421

Pictures
Customers		223,450			206,470			-7.6			1,706
Intersegment		272			110						1
Total		223,722			206,580			-7.7			1,707

Music
Customers		141,901			160,757			+13.3			1,329
Intersegment		2,764			2,853						23
Total		144,665			163,610			+13.1			1,352

Financial Services
Customers		280,833			303,211			+8.0			2,506
Intersegment		1,217			1,715						14
Total		282,050			304,926			+8.1			2,520

All Other
Customers		245,746			116,185			-52.7			960
Intersegment		24,877			28,127						233
Total		270,623			144,312			-46.7			1,193

Corporate and elimination		(111,894	)		(120,428	)	–				(995	)
Consolidated total	¥	2,410,689		¥	2,566,749			+6.5	%	$	21,213

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other.

Devices intersegment amounts primarily consist of transactions with the Mobile Communications (“MC”) segment, the G&NS segment and the Imaging Products & Solutions (“IP&S”) segment.

All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment.

Corporate and elimination includes certain brand and patent royalty income.

	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Operating income (loss)	2013			2014			Change			2014
Mobile Communications	¥	6,331		¥	9,253			+46.2	%	$	76
Game & Network Services		12,394			27,608			+122.8			228
Imaging Products & Solutions		12,071			22,986			+90.4			190
Home Entertainment & Sound		6,408			25,286			+294.6			209
Devices		(23,515	)		54,537						451
Pictures		24,258			6,219			-74.4			51
Music		21,717			25,411			+17.0			210
Financial Services		46,353			50,850			+9.7			420
All Other		(14,818	)		(14,280	)	–				(118	)
Total		91,199			207,870			+127.9			1,717

Corporate and elimination		(2,329	)		(25,775	)	–				(212	)
Consolidated total	¥	88,870		¥	182,095			+104.9	%	$	1,505

The 2013 segment disclosure above has been reclassified to reflect the change in the business segment classification discussed in Note 5.

Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.

Corporate and elimination includes headquarters restructuring costs and certain other corporate expenses, including the amortization of certain intellectual property assets such as the cross-licensing of intangible assets acquired from Ericsson at the time of the Sony Mobile Communications acquisition, which are not allocated to segments.

Within the Home Entertainment & Sound (“HE&S”) segment, the operating income (loss) of Televisions, which primarily consists of LCD televisions, for the three months ended December 31, 2013 and 2014 was (4,992) million yen and 9,256 million yen, respectively. The operating income (loss) of Televisions excludes restructuring charges which are included in the overall segment results and are not allocated to product categories.

F-6

Business Segment Information
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sales and operating revenue	2013			2014			Change			2014
Mobile Communications
Customers	¥	923,270		¥	1,051,605			+13.9	%	$	8,691
Intersegment		22			57						0
Total		923,292			1,051,662			+13.9			8,691

Game & Network Services
Customers		677,210			1,016,364			+50.1			8,400
Intersegment		78,268			82,182						679
Total		755,478			1,098,546			+45.4			9,079

Imaging Products & Solutions
Customers		551,645			541,717			-1.8			4,477
Intersegment		2,812			2,534						21
Total		554,457			544,251			-1.8			4,498

Home Entertainment & Sound
Customers		941,238			979,356			+4.0			8,094
Intersegment		1,746			2,052						17
Total		942,984			981,408			+4.1			8,111

Devices
Customers		447,828			557,577			+24.5			4,608
Intersegment		155,094			167,107						1,381
Total		602,922			724,684			+20.2			5,989

Pictures
Customers		559,972			583,043			+4.1			4,819
Intersegment		505			490						4
Total		560,477			583,533			+4.1			4,823

Music
Customers		363,807			388,904			+6.9			3,214
Intersegment		7,788			8,321						69
Total		371,595			397,225			+6.9			3,283

Financial Services
Customers		773,498			817,153			+5.6			6,753
Intersegment		3,671			4,316						36
Total		777,169			821,469			+5.7			6,789

All Other
Customers		616,736			308,614			-50.0			2,551
Intersegment		60,389			73,114						604
Total		677,125			381,728			-43.6			3,155

Corporate and elimination		(269,156	)		(306,338	)	–				(2,532	)
Consolidated total	¥	5,896,343		¥	6,278,168			+6.5	%	$	51,886

The G&NS intersegment amounts primarily consist of transactions with All Other.

Devices intersegment amounts primarily consist of transactions with the MC segment, the G&NS segment and the IP&S segment.

All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment.

Corporate and elimination includes certain brand and patent royalty income.

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Operating income (loss)	2013			2014			Change			2014
Mobile Communications	¥	27,699		¥	(165,485	)	–		%	$	(1,368	)
Game & Network Services		(8,140	)		53,717		–				444
Imaging Products & Solutions		18,860			60,493			+220.7			500
Home Entertainment & Sound		(2,319	)		40,913		–				338
Devices		(791	)		96,646		–				799
Pictures		10,244			13,009			+27.0			108
Music		42,184			48,612			+15.2			402
Financial Services		129,850			142,308			+9.6			1,176
All Other		(34,212	)		(50,875	)	–				(421	)
Total		183,375			239,338			+30.5			1,978

Corporate and elimination		(45,079	)		(73,017	)	–				(603	)
Consolidated total	¥	138,296		¥	166,321			+20.3	%	$	1,375

The 2013 segment disclosure above has been reclassified to reflect the change in the business segment classification discussed in Note 5.

Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies.

Within the HE&S segment, the operating income (loss) of Televisions, which primarily consists of LCD televisions, for the nine months ended December 31, 2013 and 2014 was (9,046) million yen and 22,094 million yen, respectively. The operating income (loss) of Televisions excludes restructuring charges which are included in the overall segment results and are not allocated to product categories.

F-7

Sales to Customers by Product Category
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue (to external customers)	2013		2014		Change			2014

Mobile Communications	¥	333,277	¥	428,956		+28.7	%	$	3,545

Game & Network Services		417,043		499,242		+19.7			4,126

Imaging Products & Solutions
Digital Imaging Products		126,212		126,361		+0.1			1,044
Professional Solutions		66,070		70,658		+6.9			584
Other		4,914		3,410		-30.6			28
Total		197,196		200,429		+1.6			1,656

Home Entertainment & Sound
Televisions		254,893		280,572		+10.1			2,319
Audio and Video		143,865		131,073		-8.9			1,083
Other		4,983		1,099		-77.9			9
Total		403,741		412,744		+2.2			3,411

Devices
Semiconductors		94,872		161,713		+70.5			1,336
Components		61,658		67,525		+9.5			558
Other		869		2,458		+182.9			21
Total		157,399		231,696		+47.2			1,915

Pictures
Motion Pictures		119,946		100,723		-16.0			832
Television Productions		64,263		51,831		-19.3			428
Media Networks		39,241		53,916		+37.4			446
Total		223,450		206,470		-7.6			1,706

Music
Recorded Music		107,379		122,211		+13.8			1,010
Music Publishing		14,255		16,675		+17.0			138
Visual Media and Platform		20,267		21,871		+7.9			181
Total		141,901		160,757		+13.3			1,329

Financial Services		280,833		303,211		+8.0			2,506
All Other		245,746		116,185		-52.7			960
Corporate		10,103		7,059		-30.1			59
Consolidated total	¥	2,410,689	¥	2,566,749		+6.5	%	$	21,213

The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-6. Sony management views each segment as a single operating segment. However, Sony believes that the breakdown of sales and operating revenue to external customers for the segments in this table is useful to investors in understanding sales by product category.

Sony has realigned its product category configuration from the first quarter of the fiscal year ending March 31, 2015. In connection with the realignment, all prior period sales amounts by product category in the table above have been reclassified to conform to the current presentation.

In the IP&S segment, Digital Imaging Products includes compact digital cameras, interchangeable single-lens cameras and video cameras; Professional Solutions includes broadcast- and professional-use products. In the HE&S segment, Televisions includes LCD televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones, and memory-based portable audio devices. In the Devices segment, Semiconductors includes image sensors; Components includes batteries, recording media and data recording systems. In the Pictures segment, Motion Pictures includes the production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks. In the Music segment, Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

F-8

Sales to Customers by Product Category
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sales and operating revenue (to external customers)	2013		2014		Change			2014

Mobile Communications	¥	923,270	¥	1,051,605		+13.9	%	$	8,691

Game & Network Services		677,210		1,016,364		+50.1			8,400

Imaging Products & Solutions
Digital Imaging Products		346,347		342,061		-1.2			2,827
Professional Solutions		193,268		191,196		-1.1			1,580
Other		12,030		8,460		-29.7			70
Total		551,645		541,717		-1.8			4,477

Home Entertainment & Sound
Televisions		614,585		685,303		+11.5			5,664
Audio and Video		318,813		292,210		-8.3			2,415
Other		7,840		1,843		-76.5			15
Total		941,238		979,356		+4.0			8,094

Devices
Semiconductors		263,471		362,587		+37.6			2,997
Components		182,322		189,320		+3.8			1,565
Other		2,035		5,670		+178.6			46
Total		447,828		557,577		+24.5			4,608

Pictures
Motion Pictures		288,736		302,688		+4.8			2,502
Television Productions		149,581		138,452		-7.4			1,144
Media Networks		121,655		141,903		+16.6			1,173
Total		559,972		583,043		+4.1			4,819

Music
Recorded Music		266,110		282,035		+6.0			2,331
Music Publishing		45,109		49,329		+9.4			408
Visual Media and Platform		52,588		57,540		+9.4			475
Total		363,807		388,904		+6.9			3,214

Financial Services		773,498		817,153		+5.6			6,753
All Other		616,736		308,614		-50.0			2,551
Corporate		41,139		33,835		-17.8			279
Consolidated total	¥	5,896,343	¥	6,278,168		+6.5	%	$	51,886

The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-7. Sony management views each segment as a single operating segment. However, Sony believes that the breakdown of sales and operating revenue to external customers for the segments in this table is useful to investors in understanding sales by product category.

F-9

Other Items
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Depreciation and amortization	2013		2014		Change			2014

Mobile Communications	¥	5,519	¥	5,571		+0.9	%	$	46
Game & Network Services		4,395		4,740		+7.8			39
Imaging Products & Solutions		9,220		7,243		-21.4			60
Home Entertainment & Sound		6,053		6,356		+5.0			53
Devices		25,576		21,967		-14.1			182
Pictures		4,420		5,241		+18.6			43
Music		3,611		3,391		-6.1			28
Financial Services, including deferred insurance acquisition costs		11,111		13,770		+23.9			114
All Other		7,139		3,382		-52.6			28
Total		77,044		71,661		-7.0			593

Corporate		11,752		12,672		+7.8			104
Consolidated total	¥	88,796	¥	84,333		-5.0	%	$	697

	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31, 2013
Restructuring charges and associated depreciation	Total net restructuring charges				Depreciation associated with restructured assets	Total

Mobile Communications	¥	421		¥	－	¥	421
Game & Network Services		10			－		10
Imaging Products & Solutions		(169	)		－		(169	)
Home Entertainment & Sound		9			－		9
Devices		1,102			－		1,102
Pictures		278			－		278
Music		44			－		44
Financial Services	－				－	－
All Other and Corporate		11,853			115		11,968
Consolidated total	¥	13,548		¥	115	¥	13,663

	Three months ended December 31, 2014
Restructuring charges and associated depreciation	Total net restructuring charges		Depreciation associated with restructured assets		Total

Mobile Communications	¥	1,768	¥	22	¥	1,790
Game & Network Services		12	－			12
Imaging Products & Solutions		314	－			314
Home Entertainment & Sound		2	－			2
Devices		208		12		220
Pictures		166	－			166
Music		1,317	－			1,317
Financial Services	－		－		－
All Other and Corporate		5,223		4		5,227
Consolidated total	¥	9,010	¥	38	¥	9,048

Depreciation associated with restructured assets as used in the context of the disclosures regarding restructuring activities refers to the increase in depreciation expense caused by revising the useful life and the salvage value of depreciable fixed assets to coincide with the earlier end of production under an approved restructuring plan. Any impairment of the assets is recognized immediately in the period it is identified.

	Three months ended December 31, 2014
Restructuring charges and associated depreciation	Total net restructuring charges		Depreciation associated with restructured assets		Total

Mobile Communications	$	15	$	0	$	15
Game & Network Services		0	－			0
Imaging Products & Solutions		3	－			3
Home Entertainment & Sound		0	－			0
Devices		2		0		2
Pictures		1	－			1
Music		11	－			11
Financial Services	－		－		－
All Other and Corporate		42		1		43
Consolidated total	$	74	$	1	$	75

F-10

Other Items
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Depreciation and amortization	2013		2014		Change			2014

Mobile Communications	¥	16,440	¥	16,450		+0.1	%	$	136
Game & Network Services		12,262		13,166		+7.4			109
Imaging Products & Solutions		28,542		22,503		-21.2			186
Home Entertainment & Sound		19,281		18,599		-3.5			154
Devices		77,436		64,569		-16.6			534
Pictures		13,406		14,497		+8.1			120
Music		10,802		10,158		-6.0			84
Financial Services, including deferred insurance acquisition costs		40,614		42,991		+5.9			355
All Other		21,715		10,074		-53.6			83
Total		240,498		213,007		-11.4			1,761

Corporate		37,254		38,073		+2.2			314
Consolidated total	¥	277,752	¥	251,080		-9.6	%	$	2,075

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31, 2013
Restructuring charges and associated depreciation	Total net restructuring charges			Depreciation associated with restructured assets	Total

Mobile Communications	¥	3,567	¥	－	¥	3,567
Game & Network Services		392		－		392
Imaging Products & Solutions		1,991		－		1,991
Home Entertainment & Sound		941		19		960
Devices		3,531		－		3,531
Pictures		1,149		－		1,149
Music		148		－		148
Financial Services	－			－	－
All Other and Corporate		13,927		458		14,385
Consolidated total	¥	25,646	¥	477	¥	26,123

	Nine months ended December 31, 2014
Restructuring charges and associated depreciation	Total net restructuring charges		Depreciation associated with restructured assets		Total

Mobile Communications	¥	1,825	¥	22	¥	1,847
Game & Network Services		76	－			76
Imaging Products & Solutions		513	－			513
Home Entertainment & Sound		580	－			580
Devices		3,565		16		3,581
Pictures		182	－			182
Music		1,377	－			1,377
Financial Services	－		－		－
All Other and Corporate		24,922		656		25,578
Consolidated total	¥	33,040	¥	694	¥	33,734

	Nine months ended December 31, 2014
Restructuring charges and associated depreciation	Total net restructuring charges		Depreciation associated with restructured assets		Total

Mobile Communications	$	15	$	0	$	15
Game & Network Services		1	－			1
Imaging Products & Solutions		4	－			4
Home Entertainment & Sound		5	－			5
Devices		29		1		30
Pictures		2	－			2
Music		11	－			11
Financial Services	－		－		－
All Other and Corporate		206		5		211
Consolidated total	$	273	$	6	$	279

F-11

Geographic Information
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue (to external customers)	2013		2014		Change			2014

Japan	¥	628,859	¥	654,936		+4.1	%	$	5,413
United States		423,633		496,027		+17.1			4,099
Europe		619,082		668,333		+8.0			5,523
China		132,148		155,839		+17.9			1,288
Asia-Pacific		288,141		308,499		+7.1			2,550
Other Areas		318,826		283,115		-11.2			2,340
Total	¥	2,410,689	¥	2,566,749		+6.5	%	$	21,213

	Nine months ended December 31
Sales and operating revenue (to external customers)		2013		2014	Change				2014

Japan	¥	1,671,446	¥	1,665,860		-0.3	%	$	13,767
United States		943,047		1,129,151		+19.7			9,332
Europe		1,327,137		1,521,924		+14.7			12,578
China		401,262		433,420		+8.0			3,582
Asia-Pacific		790,928		812,768		+2.8			6,717
Other Areas		762,523		715,045		-6.2			5,910
Total	¥	5,896,343	¥	6,278,168		+6.5	%	$	51,886

Geographic Information shows sales and operating revenue recognized by location of customers.

Major areas in each geographic segment excluding Japan, United States and China are as follows:

(1) Europe: United Kingdom, France, Germany, Russia, Spain and Sweden

(2) Asia-Pacific: India, South Korea and Oceania

(3) Other Areas: The Middle East/Africa, Brazil, Mexico and Canada

F-12

Condensed Financial Services Financial Statements

The results of the Financial Services segment are included in Sony’s consolidated financial statements. The following schedules show unaudited condensed financial statements for the Financial Services segment and all other segments excluding Financial Services. These presentations are not in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which is used by Sony to prepare its consolidated financial statements. However, because the Financial Services segment is different in nature from Sony’s other segments, Sony believes that a comparative presentation may be useful in understanding and analyzing Sony’s consolidated financial statements. Transactions between the Financial Services segment and Sony without the Financial Services segment, including noncontrolling interests, are included in those respective presentations, then eliminated in the consolidated figures shown below.

Condensed Balance Sheets

	(Millions of yen, millions of U.S. dollars)
Financial Services	March 31		December 31
	2014		2014		2014
ASSETS
Current assets:
Cash and cash equivalents	¥	240,332	¥	290,564	$	2,401
Marketable securities		828,944		939,918		7,768
Other		147,241		176,312		1,457
		1,216,517		1,406,794		11,626

Investments and advances		7,567,242		7,997,573		66,096
Property, plant and equipment		17,057		16,968		140
Other assets:
Deferred insurance acquisition costs		497,772		520,497		4,302
Other		49,328		45,494		376
		547,100		565,991		4,678
Total assets	¥	9,347,916	¥	9,987,326	$	82,540

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	6,148	¥	77,766	$	643
Deposits from customers in the banking business		1,890,023		1,863,644		15,402
Other		175,499		204,427		1,689
		2,071,670		2,145,837		17,734

Long-term debt		44,678		44,617		369
Future insurance policy benefits and other		3,824,572		4,046,188		33,440
Policyholders’ account in the life insurance business		2,023,472		2,218,027		18,331
Other		302,521		327,904		2,709
Total liabilities		8,266,913		8,782,573		72,583

Equity:
Stockholders’ equity of Financial Services		1,079,740		1,203,461		9,946
Noncontrolling interests		1,263		1,292		11
Total equity		1,081,003		1,204,753		9,957
Total liabilities and equity	¥	9,347,916	¥	9,987,326	$	82,540

F-13

	(Millions of yen, millions of U.S. dollars)
Sony without Financial Services	March 31		December 31
	2014		2014		2014
ASSETS
Current assets:
Cash and cash equivalents	¥	806,134	¥	642,934	$	5,314
Marketable securities		3,622		3,270		27
Notes and accounts receivable, trade		864,178		1,279,815		10,577
Other		1,316,653		1,455,201		12,026
		2,990,587		3,381,220		27,944

Film costs		275,799		338,354		2,796
Investments and advances		381,076		392,946		3,247
Investments in Financial Services, at cost		111,476		111,476		921
Property, plant and equipment		732,953		743,367		6,145
Other assets		1,640,385		1,519,058		12,554
Total assets	¥	6,132,276	¥	6,486,421	$	53,607

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	371,606	¥	256,202	$	2,117
Notes and accounts payable, trade		712,829		790,698		6,535
Other		1,629,728		1,981,325		16,375
		2,714,163		3,028,225		25,027

Long-term debt		875,440		675,343		5,581
Accrued pension and severance costs		262,558		261,681		2,163
Other		462,386		483,482		3,995
Total liabilities		4,314,547		4,448,731		36,766

Redeemable noncontrolling interest		4,115		5,297		44

Equity:
Stockholders’ equity of Sony without Financial Services		1,722,743		1,923,266		15,895
Noncontrolling interests		90,871		109,127		902
Total equity		1,813,614		2,032,393		16,797
Total liabilities and equity	¥	6,132,276	¥	6,486,421	$	53,607

	(Millions of yen, millions of U.S. dollars)
Consolidated	March 31		December 31
	2014		2014		2014
ASSETS
Current assets:
Cash and cash equivalents	¥	1,046,466	¥	933,498	$	7,715
Marketable securities		832,566		943,188		7,795
Notes and accounts receivable, trade		871,040		1,286,644		10,633
Other		1,454,814		1,622,919		13,413
		4,204,886		4,786,249		39,556

Film costs		275,799		338,354		2,796
Investments and advances		7,919,011		8,309,543		68,674
Property, plant and equipment		750,010		761,621		6,294
Other assets:
Deferred insurance acquisition costs		497,772		520,497		4,302
Other		1,686,242		1,561,083		12,902
		2,184,014		2,081,580		17,204
Total assets	¥	15,333,720	¥	16,277,347	$	134,524

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	377,754	¥	333,968	$	2,760
Notes and accounts payable, trade		712,829		790,698		6,535
Deposits from customers in the banking business		1,890,023		1,863,644		15,402
Other		1,803,008		2,183,987		18,049
		4,783,614		5,172,297		42,746

Long-term debt		916,648		716,489		5,921
Accrued pension and severance costs		284,963		285,524		2,360
Future insurance policy benefits and other		3,824,572		4,046,188		33,440
Policyholders’ account in the life insurance business		2,023,472		2,218,027		18,331
Other		713,195		759,369		6,276
Total liabilities		12,546,464		13,197,894		109,074

Redeemable noncontrolling interest		4,115		5,297		44

Equity:
Sony Corporation’s stockholders’ equity		2,258,137		2,481,378		20,507
Noncontrolling interests		525,004		592,778		4,899
Total equity		2,783,141		3,074,156		25,406
Total liabilities and equity	¥	15,333,720	¥	16,277,347	$	134,524

F-14

Condensed Statements of Income
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Financial Services	2013			2014			Change			2014

Financial services revenue	¥	282,050		¥	304,926			+8.1	%	$	2,520
Financial services expenses		235,023			253,099			+7.7			2,092
Equity in net loss of affiliated companies		(674	)		(977	)	－				(8	)
Operating income		46,353			50,850			+9.7			420
Other income (expenses), net		58		－			－			－
Income before income taxes		46,411			50,850			+9.6			420
Income taxes and other		15,148			15,876			+4.8			131
Net income of Financial Services	¥	31,263		¥	34,974			+11.9	%	$	289



	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sony without Financial Services		2013			2014		Change				2014

Net sales and operating revenue	¥	2,130,753		¥	2,264,469			+6.3	%	$	18,715
Costs and expenses		2,091,095			2,134,072			+2.1			17,637
Equity in net income of affiliated companies		2,343			849			-63.8			7
Operating income		42,001			131,246			+212.5			1,085
Other income (expenses), net		(105	)		(14,268	)	－				(118	)
Income before income taxes		41,896			116,978			+179.2			967
Income taxes and other		34,153			47,992			+40.5			397
Net income of Sony without Financial Services	¥	7,743		¥	68,986			+790.9	%	$	570



	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Consolidated		2013			2014		Change				2014

Financial services revenue	¥	280,833		¥	303,211			+8.0	%	$	2,506
Net sales and operating revenue		2,129,856			2,263,538			+6.3			18,707
		2,410,689			2,566,749			+6.5			21,213
Costs and expenses		2,323,488			2,384,526			+2.6			19,707
Equity in net income (loss) of affiliated companies		1,669			(128	)	－				(1	)
Operating income		88,870			182,095			+104.9			1,505
Other income (expenses), net		(563	)		(14,267	)	－				(118	)
Income before income taxes		88,307			167,828			+90.1			1,387
Income taxes and other		61,925			77,857			+25.7			643
Net income attributable to Sony Corporation’s stockholders	¥	26,382		¥	89,971			+241.0	%	$	744

F-15

Condensed Statements of Income

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Financial Services	2013			2014			Change			2014

Financial services revenue	¥	777,169		¥	821,469			+5.7	%	$	6,789
Financial services expenses		645,395			678,240			+5.1			5,605
Equity in net loss of affiliated companies		(1,924	)		(921	)	－				(8	)
Operating income		129,850			142,308			+9.6			1,176
Other income (expenses), net		177		－			－			－
Income before income taxes		130,027			142,308			+9.4			1,176
Income taxes and other		42,416			44,513			+4.9			368
Net income of Financial Services	¥	87,611		¥	97,795			+11.6	%	$	808



	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sony without Financial Services		2013			2014		Change				2014

Net sales and operating revenue	¥	5,124,921		¥	5,463,978			+6.6	%	$	45,157
Costs and expenses		5,119,133			5,393,075			+5.4			44,571
Equity in net income of affiliated companies		1,143			4,623			+304.5			39
Operating income		6,931			75,526			+989.7			625
Other income (expenses), net		8,395			(12,241	)	－				(101	)
Income before income taxes		15,326			63,285			+312.9			524
Income taxes and other		51,282			81,809			+59.5			677
Net loss of Sony without Financial Services	¥	(35,956	)	¥	(18,524	)	－		%	$	(153	)



	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Consolidated		2013			2014		Change				2014

Financial services revenue	¥	773,498		¥	817,153			+5.6	%	$	6,753
Net sales and operating revenue		5,122,845			5,461,015			+6.6			45,133
		5,896,343			6,278,168			+6.5			51,886
Costs and expenses		5,757,266			6,115,549			+6.2			50,542
Equity in net income (loss) of affiliated companies		(781	)		3,702		－				31
Operating income		138,296			166,321			+20.3			1,375
Other income (expenses), net		533			(20,071	)	－				(166	)
Income before income taxes		138,829			146,250			+5.3			1,209
Income taxes and other		128,951			165,440			+28.3			1,368
Net income (loss) attributable to Sony Corporation’s stockholders	¥	9,878		¥	(19,190	)	－		%	$	(159	)

F-16

Condensed Statements of Cash Flows

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Financial Services	2013			2014			2014

Net cash provided by operating activities	¥	261,020		¥	278,246		$	2,300
Net cash used in investing activities		(390,683	)		(317,125	)		(2,621	)
Net cash provided by financing activities		169,048			89,111			736
Net increase in cash and cash equivalents		39,385			50,232			415
Cash and cash equivalents at beginning of the fiscal year		201,550			240,332			1,986
Cash and cash equivalents at end of the period	¥	240,935		¥	290,564		$	2,401


	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sony without Financial Services		2013			2014			2014

Net cash provided by (used in) operating activities	¥	(10,849	)	¥	112,516		$	931
Net cash used in investing activities		(46,125	)		(46,665	)		(386	)
Net cash used in financing activities		(24,673	)		(281,516	)		(2,327	)
Effect of exchange rate changes on cash and cash equivalents		65,149			52,465			434
Net decrease in cash and cash equivalents		(16,498	)		(163,200	)		(1,348	)
Cash and cash equivalents at beginning of the fiscal year		624,811			806,134			6,662
Cash and cash equivalents at end of the period	¥	608,313		¥	642,934		$	5,314


	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Consolidated		2013			2014			2014

Net cash provided by operating activities	¥	243,508		¥	382,932		$	3,165
Net cash used in investing activities		(436,808	)		(363,790	)		(3,007	)
Net cash provided by (used in) financing activities		151,038			(184,575	)		(1,525	)
Effect of exchange rate changes on cash and cash equivalents		65,149			52,465			434
Net increase (decrease) in cash and cash equivalents		22,887			(112,968	)		(933	)
Cash and cash equivalents at beginning of the fiscal year		826,361			1,046,466			8,648
Cash and cash equivalents at end of the period	¥	849,248		¥	933,498		$	7,715

F-17

(Notes)

1.	U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥121 = U.S. $1, the approximate Tokyo foreign exchange market rate as of December 31, 2014.

2.	As of December 31, 2014, Sony had 1,247 consolidated subsidiaries (including variable interest entities) and 100 affiliated companies accounted for under the equity method.

3.	The weighted-average number of outstanding shares used for the computation of earnings per share of common stock are as follows:

Weighted-average number of outstanding shares	(Thousands of shares)
	Three months ended December 31
Net income attributable to Sony Corporation’s stockholders	2013		2014
— Basic		1,037,640		1,151,770
— Diluted		1,168,523		1,168,990

Weighted-average number of outstanding shares	(Thousands of shares)
	Nine months ended December 31
Net income (loss) attributable to Sony Corporation’s stockholders	2013		2014
— Basic		1,022,810		1,096,392
— Diluted		1,168,549		1,096,392

All potential shares were excluded as anti-dilutive for the nine months ended December 31, 2014 due to Sony incurring a net loss attributable to Sony Corporation’s stockholders for this period. The dilutive effect in the weighted-average number of outstanding shares for the three and nine months ended December 31, 2013 and three months ended December 31, 2014 substantially resulted from the zero coupon convertible bonds which were issued in November 2012.

Recently adopted accounting pronouncements:

Obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date

In February 2013, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, plus any additional amount the reporting entity expects to pay on behalf of its co-obligors. This guidance was effective for Sony as of April 1, 2014. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

Parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity

In March 2013, the FASB issued new accounting guidance for the parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. The guidance resolved diversity in practice and clarifies the applicable guidance for the release of the cumulative translation adjustment when the parent sells a part or all of its investment in a foreign entity, ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, or obtains control in a business combination achieved in stages involving an equity method investment that is a foreign entity. After adoption of this guidance, any accumulated translation adjustments associated with a previously held equity interest, are included in earnings in a business combination achieved in stages. This guidance was effective for Sony as of April 1, 2014. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

F-18

Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists

In July 2013, the FASB issued new accounting guidance for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance requires an unrecognized tax benefit to be presented as a reduction to a deferred tax asset for a net operating loss, a similar tax loss, or a tax credit carryforward if certain criteria are met. This guidance was effective for Sony as of April 1, 2014. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

Sony realigned its business segments for the first quarter of the fiscal year ending March 31, 2015 to reflect modifications to its organizational structure as of April 1, 2014, primarily repositioning the operations of the previously reported Game and Mobile Products & Communications (“MP&C”) segments. In connection with this realignment, the previously-reported operations of the network business which were included in All Other are now integrated with the previously-reported Game segment and are reported as the G&NS segment. The previously reported Mobile Communications category which was included in the MP&C segment has been reclassified as the newly established MC segment, while the other categories in the previously reported MP&C segment are now included in All Other. This includes the reclassification of the PC business into All Other. As of the first quarter of the fiscal year ending March 31, 2015, the power supply business, which was previously included in the Devices segment, has been integrated into All Other to reflect modifications Sony made to its organizational structure as of June 1, 2014. For further details of new segments and categories, see page F-8 and F-9. In connection with this realignment, the sales and operating revenue and operating income (loss) of each segment for the comparable period have been reclassified to conform to the current quarter’s presentation.

Sony estimates the annual effective tax rate ("ETR") derived from a projected annual net income before taxes and calculates the interim period income tax provision based on the year-to-date income tax provision computed by applying the ETR to the year-to-date net income before taxes at the end of each interim period. The income tax provision based on the ETR reflects anticipated income tax credits and net operating loss carryforwards; however, it excludes the income tax provision related to significant unusual or extraordinary transactions. Such income tax provision is separately reported from the provision based on the ETR in the interim period in which they occur.

Certain reclassifications of the financial statements and accompanying footnotes for the three and nine months ended December 31, 2013 have been made to conform to the presentation for the three and nine months ended December 31, 2014. Reclassifications include changes in the presentation and disclosure related to internal-use software, effective on March 31, 2014. Due to the changes, the amortization of internal-use software was reclassified from other to depreciation and amortization, including amortization of deferred insurance acquisition costs in the cash flows from operating activities section of the consolidated statements of cash flows. Depreciation and amortization in the business segment information were also reclassified, accordingly.

During the fourth quarter of the fiscal year ended March 31, 2014, Sony revised its financial statements related to the recognition of revenue for certain of its universal life insurance contracts as disclosed in the previous fiscal year. Accordingly, certain financial information for the comparable period has been revised. The principal amounts that have been revised are indicated below.

	(Millions of yen)
	Three months ended December 31, 2013
	As previously reported		As adjusted
Consolidated Statements of Income
Financial services revenue	¥	282,963	¥	280,833
Financial services expenses		234,459		233,791
Net income		43,719		42,723

Consolidated Statements of Comprehensive Income
Unrealized gains on securities		9,987		10,126
Comprehensive income attributable to Sony Corporation’s stockholders		161,370		160,856

F-19

	(Millions of yen)
	Nine months ended December 31, 2013
	As previously reported		As adjusted
Consolidated Statements of Income
Financial services revenue	¥	778,172	¥	773,498
Financial services expenses		643,201		641,684
Net income		57,595		55,438

Consolidated Statements of Comprehensive Income
Unrealized gains on securities		12,863		12,672
Comprehensive income attributable to Sony Corporation’s stockholders		213,132		211,724

Consolidated Statements of Cash Flows
Increase in future insurance policy benefits and other		323,906		323,244
Increase in deposits from customers in the financial services business, net		161,656		166,329

For the nine months ended December 31, 2014, Sony recorded an out-of-period adjustment to correct an error in the amounts of revenue and certain capitalizable assets being recorded at a subsidiary. The error began in 2012 and continued until it was identified by Sony during the nine months ended December 31, 2014. The adjustment, which related entirely to All Other, impacted net sales, cost of sales, and selling, general and administrative expenses, and, in the aggregate, decreased income before income taxes in the consolidated statements of income by 5,104 million yen for the nine months ended December 31, 2014. Sony determined that the adjustment was not material to the consolidated financial statements for the three and nine months ended December 31, 2014 or any prior annual or interim periods.

Other Consolidated Financial Data

	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
	2013			2014			2014
Capital expenditures*	¥	62,020		¥	56,937		$	471
(Additions to property, plant and equipment)		(34,648	)		(36,622	)		(303	)
(Additions to intangible assets)		(27,372	)		(20,315	)		(168	)
Depreciation and amortization expenses**		88,796			84,333			697
(Depreciation expenses for property, plant and equipment)		(45,715	)		(40,344	)		(333	)
(Amortization expenses for intangible assets)		(43,081	)		(43,989	)		(364	)
Research and development expenses		115,970			118,295			978

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2013			2014			2014
Capital expenditures*	¥	190,846		¥	169,558		$	1,401
(Additions to property, plant and equipment)		(124,143	)		(112,948	)		(933	)
(Additions to intangible assets)		(66,703	)		(56,610	)		(468	)
Depreciation and amortization expenses**		277,752			251,080			2,075
(Depreciation expenses for property, plant and equipment)		(143,414	)		(118,329	)		(978	)
(Amortization expenses for intangible assets)		(134,338	)		(132,751	)		(1,097	)
Research and development expenses		344,581			340,301			2,812


*	Excluding additions for tangible and intangible assets from business combinations.
**	Including amortization expenses for intangible assets and for deferred insurance acquisition costs.

F-20

(Subsequent events)

Sony Music Entertainment, a wholly owned subsidiary of Sony (“SME”), has entered into an agreement to increase its shareholding in an equity method investment, Orchard Media, Inc. (“The Orchard”), to 100% by acquiring shares from the current holder, Orchard Asset Holdings, LLC, for approximately 200 million U.S. dollars. Sony expects to record a non-cash gain related to the acquisition in connection with obtaining control of The Orchard, primarily due to the appreciation in value of SME’s current equity interest in The Orchard that SME owned prior to the acquisition. The amount of expected gain is under evaluation and subject to transaction costs and other adjustments. Sony expects this acquisition to close after March 31, 2015 subject to necessary regulatory approvals.

F-21