Edgar Filing: SONY CORP

a6593418.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 February 2011

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/ Masaru Kato
	(Signature)
	Masaru Kato
	Executive Vice President and
	Chief Financial Officer

Date: February 3, 2011

List of materials

Documents attached hereto:

i) Press release announcing Consolidated Financial Results for the Third Quarter Ended December 31, 2010

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

No. 11-016E

3:00 P.M. JST, February 3, 2011

Consolidated Financial Results

for the Third Quarter Ended December 31, 2010

Tokyo, February 3, 2011 -- Sony Corporation today announced its consolidated results for the third quarter ended December 31, 2010 (October 1, 2010 to December 31, 2010).

●	Consolidated operating income decreased slightly to 137.5 billion yen, as a significant unfavorable foreign exchange impact outweighed positive factors for the quarter.
●	Operating income in the Networked Products & Services segment increased significantly due to the contribution of the game business, while operating income decreased in most other segments, particularly the Consumer, Professional & Devices segment which was negatively affected mainly due to LCD televisions.

	(Billions of yen, millions of U.S. dollars, except per share amounts)
	Third quarter ended December 31
	2009		2010		Change in yen				2010*
Sales and operating revenue	¥	2,237.9	¥	2,206.2		-1.4	%	$	27,238
Operating income		146.1		137.5		-5.9			1,698
Income before income taxes		123.9		131.5		+6.2			1,624
Net income attributable to		79.2		72.3		-8.6			893
Sony Corporation’s stockholders
Net income attributable to
Sony Corporation’s stockholders
per share of common stock:
- Basic	¥	78.89	¥	72.08		-8.6	%	$	0.89
- Diluted		78.76		71.96		-8.6			0.89

Unless otherwise specified, all amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. (“U.S. GAAP”).

Supplemental Information

In addition to operating income, Sony’s management also evaluates Sony’s performance using non-U.S. GAAP adjusted operating income. Operating income, as adjusted, which excludes equity in net income (loss) of affiliated companies and restructuring charges, is not a presentation in accordance with U.S. GAAP and is presented to enhance investors’ understanding of Sony’s operating income by providing an alternative measure that may be useful to understand Sony’s historical and prospective operating performance.

	(Billions of yen, millions of U.S. dollars)
	Third Quarter Ended December 31
	2009			2010		Change in yen				2010*
Operating income	¥	146.1		¥	137.5		-5.9	%	$	1,698
Less: Equity in net income (loss) of affiliated companies		(5.9	)		2.6		-			32
Add: Restructuring charges recorded within operating expenses**		13.5			16.0		+19.0			198
Operating income, as adjusted	¥	165.5		¥	150.9		-8.8	%	$	1,864

Sony’s management uses this measure to review operating trends, perform analytical comparisons, and assess whether its structural transformation initiatives are achieving their objectives. This supplemental non-U.S. GAAP measure should be considered in addition to, not as a substitute for, Sony’s operating income in accordance with U.S. GAAP.

* U.S. dollar amounts have been translated from yen, for convenience only, at the rate of 81 yen=1 U.S. dollar, the approximate Tokyo foreign exchange market rate as of December 31, 2010.

** Sony is undertaking structural transformation initiatives to enhance profitability through implementation of various cost reduction programs as well as the adoption of horizontal platforms. Restructuring charges are recorded, depending on the nature of the individual items, in cost of sales, selling, general and administrative expenses as well as (gain) loss on sales, disposal or impairment of assets and other, net in the consolidated statement of income.

Sony realigned its reportable segments from the first quarter of the fiscal year ending March 31, 2011, to reflect modifications to the organizational structure as of April 1, 2010, primarily repositioning the operations of the previously reported B2B & Disc Manufacturing segment. In connection with this realignment, the Consumer Products & Devices segment was renamed the Consumer, Professional & Devices (“CPD”) segment. The CPD segment includes televisions, digital imaging, audio and video, semiconductors and components as well as professional solutions (the B2B business which was previously included in the B2B & Disc Manufacturing segment). The equity results of S-LCD Corporation (“S-LCD”), a joint venture with Samsung Electronics Co., Ltd., are also included within the CPD segment. The disc manufacturing business previously included in the B2B & Disc Manufacturing segment is now included in All Other.

The Networked Products & Services (“NPS”), Pictures, Music and Financial Services segments remain unchanged. The equity earnings from Sony Ericsson Mobile Communications AB (“Sony Ericsson”) continue to be presented as a separate segment.

In connection with this realignment, both the sales and operating revenue (“sales”) and operating income (loss) of each segment in the third quarter ended December 31 of the previous fiscal year have been revised to conform to the current quarter’s presentation.

Consolidated Results for the Third Quarter Ended December 31, 2010

Sales were 2,206.2 billion yen (27,238 million U.S. dollars), a decrease of 1.4% compared to the same quarter of the previous fiscal year (“year-on-year”), primarily due to unfavorable foreign exchange rates. In all segments excluding the CPD and Financial Services segments, sales declined year-on-year.

During the quarter ended December 31, 2010, average foreign exchange rates were 81.6 yen against the U.S. dollar and 110.7 yen against the euro, an 8.7% and 18.5% yen appreciation compared to the previous year’s third quarter, respectively. On a local currency basis, sales increased 6% year-on-year. For references to sales on a local currency basis, see Note on page 8.

Operating income decreased 8.6 billion yen year-on-year to 137.5 billion yen (1,698 million U.S. dollars), primarily due to unfavorable foreign exchange rates. Operating income in the NPS segment increased significantly due to the contribution of the game business, while operating income decreased in most other segments, particularly the CPD segment which was negatively affected mainly due to LCD televisions. Excluding equity in net income (loss) of affiliated companies and restructuring charges, operating income on an as adjusted basis decreased by 14.6 billion yen to 150.9 billion yen (1,864 million U.S. dollars) year-on-year.

Equity in net income of affiliated companies, recorded within operating income, was 2.6 billion yen (32 million U.S. dollars) compared to a loss of 5.9 billion yen in the same quarter of the previous fiscal year. During the current quarter, Sony recorded equity in net income for Sony Ericsson of 0.4 billion yen (5 million U.S. dollars) compared to equity in net loss of 10.2 billion yen in the same quarter of the previous fiscal year. Equity in net income for S-LCD was 2.1 billion yen (27 million U.S. dollars), a decrease of 0.8 billion yen year-on-year.

The net effect of other income and expenses was an expense of 6.0 billion yen (74 million U.S. dollars), an improvement of 16.3 billion yen year-on-year, primarily due to a smaller net foreign exchange loss.

Income before income taxes increased 7.7 billion yen year-on-year to 131.5 billion yen (1,624 million U.S. dollars).　This was mainly due to the improvement in the above-mentioned net effect of other income and expenses.

Income taxes: During the current quarter, Sony recorded 47.6 billion yen (588 million U.S. dollars) of income taxes, resulting in an effective tax rate of 36.2%. In the same quarter of the previous fiscal year the effective tax rate was 26.8%. The effective tax rates of the current quarter and the same quarter of the previous fiscal year were lower than the Japanese statutory tax rate primarily as a result of profits at non-Japanese subsidiaries subject to lower tax rates, the impact of which was more significant in the same quarter of the previous fiscal year.

Net income attributable to Sony Corporation’s stockholders, which excludes net income attributable to noncontrolling interests, decreased 6.8 billion yen year-on-year to 72.3 billion yen (893 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.

Consumer, Professional & Devices

	(Billions of yen, millions of U.S. dollars)
	Third quarter ended December 31
	2009			2010			Change in yen			2010
Sales and operating revenue		¥	1,046.8		¥	1,090.9		+4.2	%		$	13,468
Operating income			50.8			26.8		-47.2				331

Unless otherwise specified, all amounts are on a U.S. GAAP basis.

Sales increased 4.2% year-on-year (a 13% increase on a local currency basis) to 1,090.9 billion yen (13,468 million U.S. dollars). Sales to outside customers increased 7.7% year-on-year. This was primarily due to higher LCD television sales resulting from increased unit sales, higher semiconductor sales resulting from increased small- and medium-sized LCD panel sales, and higher interchangeable single lens camera sales resulting from increased unit sales, partially offset by lower component sales resulting from a decrease in PC component sales.

Operating income decreased 24.0 billion yen year-on-year to 26.8 billion yen (331 million U.S. dollars). This was driven by an increase in selling, general and administrative expenses primarily associated with higher sales, unfavorable foreign exchange rates, a deterioration of the cost of sales ratio, and an increase in restructuring charges. These factors were partially offset by an increase in gross profit due to higher sales. Restructuring charges were 11.8 billion yen (145 million U.S. dollars) in the current quarter, compared with 8.6 billion yen recorded in the same quarter of the previous fiscal year. Categories which unfavorably impacted the change in segment operating results (excluding restructuring charges) include LCD televisions, reflecting a decline in unit selling prices despite rising unit sales, and compact digital cameras due to lower unit selling prices and unfavorable foreign exchange rates. A category which favorably impacted the change in segment operating results (excluding restructuring charges) was home video, resulting from an increase in unit sales of Blu-ray Disc™ recorders.

Networked Products & Services

	(Billions of yen, millions of U.S. dollars)
	Third quarter ended December 31
	2009			2010			Change in yen			2010
Sales and operating revenue		¥	605.5		¥	566.6		-6.4	%		$	6,995
Operating income			19.5			45.7		+134.9				564

Unless otherwise specified, all amounts are on a U.S. GAAP basis.

Sales decreased 6.4% year-on-year (a 3% increase on a local currency basis) to 566.6 billion yen (6,995 million U.S. dollars). Sales to outside customers decreased 7.4% year-on-year. This was mainly due to a decrease in sales in the game business resulting primarily from unfavorable foreign exchange rates.

Operating income increased 26.3 billion yen year-on-year to 45.7 billion yen (564 million U.S. dollars). This was mainly due to a significant improvement in the cost of sales ratio coupled with an increase in gross profit from higher sales, partially offset by unfavorable foreign exchange rates. The game business benefited from significant cost reductions of PlayStation®3 (“PS3”) hardware and higher unit sales of PS3 software, which favorably impacted the change in segment operating results (excluding restructuring charges).

* * * * *

Total Inventory for the CPD and NPS segments as of December 31, 2010 was 637.9 billion yen (7,875 million U.S. dollars), an increase of 91.6 billion yen, or 16.8% year-on-year. Inventory decreased by 182.1 billion yen, or 22.2% compared with the level as of September 30, 2010.

Pictures

	(Billions of yen, millions of U.S. dollars)
	Third quarter ended December 31
	2009			2010			Change in yen			2010
Sales and operating revenue		¥	203.2		¥	149.0		-26.7	%		$	1,840
Operating income			14.1			4.7		-66.7				58

Unless otherwise specified, all amounts are reported on a U.S. GAAP basis. The results presented above are a yen-translation of the results of Sony Pictures Entertainment (“SPE”), a U.S.-based operation which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis. Sony’s 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 26.7% year-on-year (a 20% decrease on a U.S. dollar basis) to 149.0 billion yen (1,840 million U.S. dollars). While the current quarter benefited from the strong performance of The Social Network, theatrical revenues declined significantly as the previous fiscal year’s third quarter included the strong theatrical releases of 2012 and Michael Jackson’s This Is It. Television revenues increased in the current quarter due to higher advertising and subscription revenues from several of SPE’s international channels.

Operating income decreased 9.4 billion yen year-on-year to 4.7 billion yen (58 million U.S. dollars). The lower operating income was due to a loss recorded on the lower-than-estimated theatrical performance of the third quarter release How Do You Know, lower home entertainment revenues from catalog product, and higher marketing expenses recorded for upcoming theatrical releases.

Music

	(Billions of yen, millions of U.S. dollars)
	Third quarter ended December 31
	2009			2010			Change in yen			2010
Sales and operating revenue		¥	163.5		¥	139.8		-14.5	%		$	1,726
Operating income			23.1			19.5		-15.7				241

Unless otherwise specified, all amounts are reported on a U.S. GAAP basis. The results presented above include the yen-translated results of Sony Music Entertainment, 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 results of Sony/ATV Music Publishing LLC, a consolidated 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 decreased 14.5% year-on-year (a 10% decrease on a local currency basis) to 139.8 billion yen (1,726 million U.S. dollars). This decrease is primarily due to the continued contraction of the physical music market, partially offset by higher digital sales, and the negative impact of the appreciation of the yen against the U.S. dollar. Best-selling titles during the current quarter included ikimono-gakari’s IKIMONO BAKARI: MEMBERS’ BEST SELECTION, Susan Boyle’s The Gift, Michael Jackson’s Michael, Kings of Leon’s Come Around Sundown, Bruce Springsteen’s The Promise, and two albums from the cast of the hit U.S. television show Glee.

Operating income decreased 3.6 billion yen year-on-year to 19.5 billion yen (241 million U.S. dollars). The decrease reflects the impact of lower sales noted above, partially offset by a year-on-year decrease in marketing costs.

Financial Services

	(Billions of yen, millions of U.S. dollars)
	Third quarter ended December 31
	2009			2010			Change in yen			2010
Financial services revenue		¥	205.6		¥	209.1		+1.7	%		$	2,582
Operating income			35.0			32.7		-6.6				404

In Sony’s Financial Services segment, the 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. (“Sony Bank”), as well as the results for Sony Finance International Inc. (“SFI”). Unless otherwise specified, all amounts are reported on a U.S. GAAP basis. Therefore, the results of Sony Life discussed below differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

Financial services revenue increased 1.7% year-on-year to 209.1 billion yen (2,582 million U.S. dollars). This was mainly due to an increase in revenue at Sony Bank mainly as a result of an improvement in foreign exchange net gains on foreign-currency denominated customer deposits. This was partially offset by a decrease in revenue at SFI, mainly as a result of the deconsolidation of its lease and rental business. Revenue at Sony Life was 181.7 billion yen (2,243 million U.S. dollars), a 1.0% increase year-on-year. This was primarily due to an increase in revenue from insurance premiums, reflecting higher policy amount in force, partially offset by a decline in net gains on sales of securities in the general account.

Operating income decreased 2.3 billion yen year-on-year to 32.7 billion yen (404 million U.S. dollars). This was mainly due to a decrease in operating income at Sony Life to 29.8 billion yen (368 million U.S. dollars), a 6.6 billion yen decline year-on-year. Operating income at Sony Life declined mainly due to the above-mentioned decrease in net gains on sales of securities in the general account, partially offset by the greater revenues from insurance premiums.

Sony Ericsson

The following operating results for Sony Ericsson, which is accounted for by the equity method as Sony Corporation’s ownership percentage is 50%, are not consolidated in Sony’s consolidated financial statements. However, Sony believes that this disclosure provides additional useful analytical information to investors regarding Sony’s operating performance.

	(Millions of euros)
	Quarter ended December 31
	2009				2010			Change in euros
Sales and operating revenue		€	1,750			€	1,528		-12.7	%
Income (loss) before taxes			(180	)			29		-
Net income (loss)			(159	)			7		-

Unless otherwise specified, all amounts are on a U.S. GAAP basis.

Sales for the quarter ended December 31, 2010 decreased 12.7% year-on-year to 1,528 million euros. This decrease was due to a decline in unit shipments as a result of the greater focus on high-end smartphones and reduction in size of the product portfolio. Income before taxes of 29 million euros was recorded for the current quarter, compared to a loss before taxes of 180 million euros in the same quarter of the previous fiscal year. This improvement was due to a decrease in restructuring charges, a rise in average selling price, and an improved cost structure. In addition, there was some benefit from items relating to warranty estimates and royalty matters.

Sony recorded equity in net income of Sony Ericsson of 0.4 billion yen (5 million U.S. dollars) for the current quarter, compared to a loss of 10.2 billion yen in the same quarter of the previous fiscal year.

Cash Flows (for the nine months ended December 31, 2010)

For Consolidated Statements of Cash Flows and 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-4 and F-13, respectively.

Operating Activities: During the nine months ended December 31, 2010, there was a net cash inflow of 403.9 billion yen (4,987 million U.S. dollars), a decrease of 138.4 billion yen, or 25.5% year-on-year.

For all segments excluding the Financial Services segment, there was a net cash inflow of 130.7 billion yen (1,614 million U.S. dollars), a decrease of 154.8 billion yen, or 54.2% year-on-year. The net cash inflow during the current nine months was mainly due to a cash contribution from net income after taking into account depreciation and amortization and increases in notes and accounts payable, trade, accrued expenses and accrued income and other taxes. This inflow was partially offset by an increase in notes and accounts receivable, trade and an increase in inventories. Compared with the same period of the previous fiscal year, the net cash inflow decreased mainly due to an increase in inventories during the current period compared to a decrease in the previous year, partially offset by a smaller increase in notes and accounts receivable, trade and an increase in cash contribution from net income after taking into account depreciation and amortization.

The Financial Services segment had a net cash inflow of 282.2 billion yen (3,485 million U.S. dollars), an increase of 19.6 billion yen, or 7.5% year-on-year. For the current nine months, net cash inflow was generated primarily due to an increase in revenue from insurance premiums as a result of an increase in policy amount in force at Sony Life. Compared with the same period of the previous fiscal year, net cash inflow increased primarily due to an increase in cash contribution from net income after excluding the impact of gain or loss on revaluation of marketable securities held for trading purposes.

Investing Activities: During the current nine months, Sony used 582.4 billion yen (7,190 million U.S. dollars) of net cash in investing activities, an increase of 43.7 billion yen, or 8.1% year-on-year.

For all segments excluding the Financial Services segment, there was a use of 100.1 billion yen (1,236 million U.S. dollars), a decrease of 149.1 billion yen, or 59.8% year-on-year. During the current nine months, net cash was used mainly for purchases of manufacturing equipment. Compared with the same period of the previous fiscal year, the net cash used decreased primarily due to lower purchases of manufacturing equipment and proceeds from the sale of a portion of Sony’s equity interest in the Nitra factory in Slovakia completed in the second quarter ended September 30, 2010.

During the current nine months, the Financial Services segment used 468.3 billion yen (5,781 million U.S. dollars) of net cash, an increase of 195.8 billion yen, or 71.8% year-on-year. Payments for investments and advances, carried out primarily at Sony Life and Sony Bank, where operations are expanding, exceeded proceeds from the maturities of marketable securities, sales of securities investments and collections of advances. The net cash outflow during the current nine months was partially offset by proceeds from the deconsolidation of a lease and rental business at SFI. The net cash used within the Financial Services segment increased year-on-year primarily due to a decrease in maturities of marketable securities, sales of securities investments and collections of advances and an increase in investments and advances.

In all segments excluding the Financial Services segment, net cash generated by operating and investing activities combined* for the current nine months was 30.6 billion yen (378 million U.S. dollars), a decrease of 5.6 billion yen, or 15.6% year-on-year.

Financing Activities: During the current nine months, there was a net cash outflow of 10.3 billion yen (127 million U.S. dollars) from financing activities, compared to a net cash inflow of 350.3 billion yen in the same period of the previous fiscal year. For all segments excluding the Financial Services segment, there was 158.5 billion yen (1,957 million U.S. dollars) of net cash outflow, compared to a net cash inflow of 151.6 billion yen in the same period of the previous fiscal year. This was primarily due to significantly higher levels of issuances of long-term corporate bonds and borrowings from banks in the same period of the previous fiscal year. There were no comparable issuances or borrowings during the current nine months; in addition, there was a 104.9 billion yen redemption of domestic straight bonds and a 52.0 billion yen reimbursement of syndicated loans in the current nine month period. In the Financial Services segment, financing activities generated 125.2 billion yen (1,545 million U.S. dollars) of net cash, a decrease of 50.7 billion yen, or 28.8% year-on-year, primarily due to a smaller increase in deposits from customers at Sony Bank and a greater decrease in short-term borrowings.

Total Cash and Cash Equivalents: Accounting for the above factors and the effect of fluctuations in exchange rates, the total outstanding balance of cash and cash equivalents at December 31, 2010 was 919.8 billion yen (11,355 million U.S. dollars). Cash and cash equivalents of all segments excluding the Financial Services segment was 773.9 billion yen (9,554 million U.S. dollars) at December 31, 2010, a decrease of 211.0 billion yen, or 21.4%, compared with the balance as of March 31, 2010. This was an increase of 30.9 billion yen, or 4.2%, compared with the balance as of December 31, 2009. Sony believes it continues to maintain sufficient liquidity through access to a total, translated into yen, of 749.6 billion yen (9,254 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, 2010. Within the Financial Services segment, the outstanding balance of cash and cash equivalents was 145.9 billion yen (1,801 million U.S. dollars) at December 31, 2010, a decrease of 60.8 billion yen, or 29.4%, compared with the balance as of March 31, 2010. This was a decrease of 115.9 billion yen, or 44.3%, compared with the balance as of December 31, 2009.

* Sony has included the information for cash flow from operating and investing activities combined excluding the Financial Services segment’s activities, as 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-13. 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 noncontrolling 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
	2009			2010			2010

Net cash provided by operating activities reported in the consolidated statements of cash flows	¥	542.3		¥	403.9		$	4,987
Net cash used in investing activities reported in the consolidated statements of cash flows		(538.7	)		(582.4	)		(7,190	)
		3.6			(178.5	)		(2,203	)

Less: Net cash provided by operating activities within the Financial Services segment		262.6			282.2			3,485
Less: Net cash used in investing activities within the Financial Services segment		(272.5	)		(468.3	)		(5,781	)
Eliminations **		(22.7	)		(23.0	)		(285	)

Cash flow provided by operating and investing activities combined	¥	36.2		¥	30.6		$	378
excluding the Financial Services segment’s activities

** Eliminations primarily consist of intersegment loans and dividend payments. Intersegment loans are between Sony Corporation and SFI, an entity included within the Financial Services segment.

Note

Sales on a local currency basis described herein reflect sales obtained by applying the yen’s monthly average exchange rate in the same quarter of the previous fiscal year to local currency-denominated monthly sales in the current quarter. Sales on a local currency basis are not reflected in Sony’s consolidated financial statements and are not measured 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 local currency basis provides additional useful analytical information to investors regarding Sony’s operating performance.

Outlook for the Fiscal Year ending March 31, 2011

The forecast for consolidated results for the fiscal year ending March 31, 2011, as announced on October 29, 2010, has been revised as per the table below. While the forecast for sales has been revised downward, the forecast for operating income, income before income taxes and net income attributable to Sony Corporation’s stockholders remains unchanged.

	(Billions of yen)
	Revised Forecast		Change from October Forecast			October Forecast		Change from March 31, 2010 Actual Results			March 31, 2010 Actual Results
Sales and operating revenue	¥	7,200		-3	%	¥	7,400		-0	%	¥	7,214.0
Operating income		200		0			200		+529			31.8
Income before income taxes		200		0			200		+643			26.9
Net income (loss) attributable		70		0			70		-			(40.8	)
to Sony Corporation’s
stockholders

Assumed foreign exchange rates for the fourth quarter ending March 31, 2011: approximately 82 yen to the U.S. dollar and approximately 110 yen to the euro. (Assumed foreign exchange rates for the second half of the current fiscal year at the time of the October forecast: approximately 83 yen to the U.S. dollar and approximately 110 yen to the euro.)

Supplemental Information

In addition to operating income, Sony’s management also evaluates Sony’s performance using non-U.S. GAAP adjusted operating income. Operating income, as adjusted, which excludes equity in net income (loss) of affiliated companies, restructuring charges and LCD television asset impairment, is not a presentation in accordance with U.S. GAAP and is presented to enhance investors’ understanding of Sony’s operating income by providing an alternative measure that may be useful to understand Sony’s historical and prospective operating performance.

	(Billions of yen)
	Revised Forecast		Change from October Forecast			October Forecast		Change from March 31, 2010 Actual Results			March 31, 2010 Actual Results
Operating income	¥	200		0	%	¥	200		+529	%	¥	31.8
Less: Equity in net income		10		-33			15		-			(30.2	)
(loss) of affiliated companies
Add: Restructuring charges		70		-7			75		-44			124.3
recorded within operating
expenses
Add: LCD television asset impairment *		-		-			-		-			27.1
Operating income, as adjusted	¥	260		0	%	¥	260		+22	%	¥	213.4

* The 27.1 billion yen loss on impairment, a non-cash charge recorded within operating income in the previous fiscal year, primarily reflected a decrease in the estimated fair value of property, plant and equipment, and certain intangible assets. Sony has excluded the loss on impairment from restructuring charges as it is not directly related to Sony’s ongoing restructuring initiatives. Sony defines restructuring initiatives as activities initiated by Sony, such as exiting a business or product category or implementing a headcount reduction program, which are designed to generate a positive impact on future profitability.

The revision in the forecast for sales is primarily due to the following factor:

●	Consolidated sales for the fiscal year are expected to be 200 billion yen below the October forecast because Sony is expecting lower sales in the CPD segment than the previous forecast in October.

Consolidated operating income for the fiscal year remains unchanged. The fiscal year operating income forecast for each major segment is as follows:

●	In the NPS segment, operating results for the fiscal year are expected to exceed the October forecast.

●	In the Pictures, Music and Financial Services segments, the fiscal year operating income for each segment is expected to slightly exceed the October forecast.

●	In the CPD segment, fiscal year operating income is expected to be below the October forecast.

Sony’s forecast for capital expenditures, depreciation and amortization, as well as for research and development expenses, as per the table below, is unchanged from the forecast announced on October 29, 2010.

	(Billions of yen)
	Current Forecast		Change from March 31, 2010 Actual Results			March 31, 2010 Actual Results

Capital expenditures*	¥	230		+19	%	¥	192.7
(additions to Property, Plant and Equipment)
Depreciation and amortization**		340		-8			371.0
[for Property, Plant and Equipment (included above)		230		-12			260.2	]
Research and development expenses		450		+4			432.0

* Investments in equity affiliates are not included within capital expenditures.

** Depreciation and amortization includes amortization of intangible assets and amortization of deferred insurance acquisition costs.

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.

As is Sony’s policy, the effects of gains and losses on investments held by Sony Life attributable to market fluctuations since January 1, 2011 have not been incorporated within the above forecast, as Sony cannot predict the movement of the financial markets through the end of the fiscal year ending March 31, 2011. Accordingly, these market fluctuations could further impact the current forecast.

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 and beliefs in light of the information currently available to it. Sony cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on any obligation of Sony to update or revise any 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) 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 LCD televisions and game platforms, which are offered in highly competitive markets characterized by 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 Consumer, Professional & Devices segment); (viii) Sony’s ability to maintain product quality; (ix) the success of Sony’s acquisitions, joint ventures and other strategic investments; (x) Sony’s ability to forecast demands, manage timely procurement and control inventories; (xi) the outcome of pending legal and/or regulatory proceedings; (xii) 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; and (xiii) 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. Risks and uncertainties also include the impact of any future events with material adverse impacts.

Investor Relations Contacts:

Tokyo	New York	London
Yoshinori Hashitani	Sam Levenson	Yas Hasegawa
+81-(0)3-6748-2111	+1-212-833-6722	+44-(0)20-7426-8696

Home Page: http://www.sony.net/IR/

Presentation Slides: http://www.sony.net/SonyInfo/IR/financial/fr/10q3_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	2010			2010			March 31, 2010		2010
Current assets:
Cash and cash equivalents	¥	1,191,608		¥	919,765		¥	-271,843	$	11,355
Marketable securities		579,493			647,268			+67,775		7,991
Notes and accounts receivable, trade		996,100			1,142,307			+146,207		14,103
Allowance for doubtful accounts and sales returns		(104,475	)		(99,404	)		+5,071		(1,227	)
Inventories		645,455			731,860			+86,405		9,035
Deferred income taxes		197,598			231,594			+33,996		2,859
Prepaid expenses and other current assets		627,093			662,172			+35,079		8,175
Total current assets		4,132,872			4,235,562			+102,690		52,291

Film costs		310,065			276,461			-33,604		3,413

Investments and advances:
Affiliated companies		229,051			222,047			-7,004		2,741
Securities investments and other		5,070,342			5,505,515			+435,173		67,970
		5,299,393			5,727,562			+428,169		70,711

Property, plant and equipment:
Land		153,067			145,907			-7,160		1,801
Buildings		897,054			824,997			-72,057		10,185
Machinery and equipment		2,235,032			2,013,192			-221,840		24,854
Construction in progress		71,242			74,997			+3,755		926
		3,356,395			3,059,093			-297,302		37,766
Less-Accumulated depreciation		(2,348,444	)		(2,148,831	)		+199,613		(26,528	)
		1,007,951			910,262			-97,689		11,238
Other assets:
Intangibles, net		378,917			343,930			-34,987		4,246
Goodwill		438,869			413,885			-24,984		5,110
Deferred insurance acquisition costs		418,525			425,162			+6,637		5,249
Deferred income taxes		403,537			332,131			-71,406		4,100
Other		475,985			421,253			-54,732		5,200
		2,115,833			1,936,361			-179,472		23,905
Total assets	¥	12,866,114		¥	13,086,208		¥	+220,094	$	161,558

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	48,785		¥	74,964		¥	+26,179	$	925
Current portion of long-term debt		235,822			137,495			-98,327		1,697
Notes and accounts payable, trade		817,118			884,564			+67,446		10,921
Accounts payable, other and accrued expenses		1,003,197			996,397			-6,800		12,301
Accrued income and other taxes		69,175			105,902			+36,727		1,307
Deposits from customers in the banking business		1,509,488			1,608,837			+99,349		19,862
Other		376,340			384,275			+7,935		4,745
Total current liabilities		4,059,925			4,192,434			+132,509		51,758

Long-term debt		924,207			819,332			-104,875		10,115
Accrued pension and severance costs		295,526			265,265			-30,261		3,275
Deferred income taxes		236,521			239,804			+3,283		2,961
Future insurance policy benefits and other		3,876,292			4,118,705			+242,413		50,848
Other		188,088			183,876			-4,212		2,270
Total liabilities		9,580,559			9,819,416			+238,857		121,227

Equity:
Sony Corporation's stockholders' equity:
Common stock		630,822			630,888			+66		7,789
Additional paid-in capital		1,157,812			1,159,269			+1,457		14,312
Retained earnings		1,851,004			1,967,670			+116,666		24,292
Accumulated other comprehensive income		(669,058	)		(832,803	)		-163,745		(10,282	)
Treasury stock, at cost		(4,675	)		(4,648	)		+27		(57	)
		2,965,905			2,920,376			-45,529		36,054

Noncontrolling interests		319,650			346,416			+26,766		4,277
Total equity		3,285,555			3,266,792			-18,763		40,331
Total liabilities and equity	¥	12,866,114		¥	13,086,208		¥	+220,094	$	161,558

F-1

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
		Three months ended December 31
		2009			2010		Change from 2009			2010
Sales and operating revenue:
Net sales		¥	2,014,145		¥	1,980,721				$	24,453
Financial service revenue			202,580			207,030					2,556
Other operating revenue			21,140			18,495					229
			2,237,865			2,206,246		-1.4	%		27,238
Costs and expenses:
Cost of sales			1,510,841			1,492,388					18,425
Selling, general and administrative			402,440			403,047					4,976
Financial service expenses			167,201			173,780					2,145
(Gain) loss on sale, disposal or impairment of assets and other, net			5,353			2,099					26
			2,085,835			2,071,314		-0.7			25,572

Equity in net income (loss) of affiliated companies			(5,927	)		2,590		-			32

Operating income			146,103			137,522		-5.9			1,698

Other income:
Interest and dividends			2,060			2,585					32
Gain on sale of securities investments, net			2,271			888					11
Other			3,391			2,716					33
			7,722			6,189		-19.9			76

Other expenses:
Interest			5,717			4,556					56
Foreign exchange loss, net			19,947			5,528					68
Other			4,296			2,092					26
			29,960			12,176		-59.4			150

Income before income taxes			123,865			131,535		+6.2			1,624

Income taxes			33,244			47,590					588

Net income			90,621			83,945		-7.4			1,036

Less - Net income attributable to noncontrolling interests			11,454			11,611					143

Net income attributable to Sony Corporation's stockholders		¥	79,167		¥	72,334		-8.6	%	$	893


Per share data:
Net income attributable to Sony Corporation's stockholders
— Basic		¥	78.89		¥	72.08		-8.6	%	$	0.89
— Diluted			78.76			71.96		-8.6	%		0.89

F-2

Consolidated Statements of Income
	(Millions of yen, millions of U.S. dollars, except per share amounts)
		Nine months ended December 31
		2009			2010		Change from 2009			2010
Sales and operating revenue:
Net sales		¥	4,811,827		¥	4,948,628				$	61,094
Financial service revenue			625,238			593,104					7,322
Other operating revenue			61,863			58,715					725
			5,498,928			5,600,447		+1.8	%		69,141
Costs and expenses:
Cost of sales			3,707,085			3,729,306					46,041
Selling, general and administrative			1,150,745			1,126,212					13,904
Financial service expenses			507,269			485,631					5,995
(Gain) loss on sale, disposal or impairment of assets and other, net			12,686			432					5
			5,377,785			5,341,581		-0.7			65,945

Equity in net income (loss) of affiliated companies			(33,332	)		14,323		-			177

Operating income			87,811			273,189		+211.1			3,373

Other income:
Interest and dividends			10,141			8,265					102
Foreign exchange gain, net			-			12,203					151
Other			18,544			9,488					117
			28,685			29,956		+4.4			370

Other expenses:
Interest			17,883			16,518					204
Loss on devaluation of securities investments			1,140			7,059					87
Foreign exchange loss, net			13,312			-					-
Other			10,266			6,413					80
			42,601			29,990		-29.6			371

Income before income taxes			73,895			273,155		+269.7			3,372

Income taxes			19,357			112,009					1,383

Net income			54,538			161,146		+195.5			1,989

Less - Net income attributable to noncontrolling interests			38,772			31,929					394

Net income attributable to Sony Corporation's stockholders		¥	15,766		¥	129,217		+719.6	%	$	1,595


Per share data:
Net income attributable to Sony Corporation's stockholders
— Basic		¥	15.71		¥	128.76		+719.6	%	$	1.59
— Diluted			15.69			128.58		+719.5	%		1.59

F-3

Consolidated Statements of Cash Flows
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2009			2010			2010
Cash flows from operating activities:
Net income	¥	54,538		¥	161,146		$	1,989
Adjustments to reconcile net income to net cash provided by operating activities-
Depreciation and amortization, including amortization of deferred insurance acquisition costs		276,065			245,637			3,033
Amortization of film costs		199,534			170,386			2,104
Stock-based compensation expense		1,611			1,436			18
Accrual for pension and severance costs, less payments		(21,526	)		(18,979	)		(234	)
(Gain) loss on sale, disposal or impairment of assets and other, net		12,686			432			5
Loss on devaluation of securities investments		1,140			7,059			87
(Gain) loss on revaluation of marketable securities held in the financial		(40,273	)		15,032			186
service business for trading purpose, net
(Gain) loss on revaluation or impairment of securities investments held		(53,450	)		2,345			29
in the financial service business, net
Deferred income taxes		(29,566	)		(5,738	)		(71	)
Equity in net (income) losses of affiliated companies, net of dividends		34,958			(13,409	)		(166	)
Changes in assets and liabilities:
Increase in notes and accounts receivable, trade		(330,197	)		(223,114	)		(2,754	)
(Increase) decrease in inventories		158,058			(161,059	)		(1,988	)
Increase in film costs		(235,838	)		(175,574	)		(2,168	)
Increase in notes and accounts payable, trade		181,701			83,727			1,034
Increase in accrued income and other taxes		81,993			38,312			473
Increase in future insurance policy benefits and other		221,764			190,550			2,352
Increase in deferred insurance acquisition costs		(51,923	)		(51,898	)		(641	)
Increase in marketable securities held in the financial service business for trading purpose		(1,999	)		(26,778	)		(331	)
Increase in other current assets		(38,075	)		(96,887	)		(1,196	)
Increase in other current liabilities		24,109			125,478			1,549
Other		97,008			135,807			1,677
Net cash provided by operating activities		542,318			403,911			4,987

Cash flows from investing activities:
Payments for purchases of fixed assets		(278,894	)		(208,803	)		(2,578	)
Proceeds from sales of fixed assets		9,203			12,628			156
Payments for investments and advances by financial service business		(1,103,707	)		(1,201,350	)		(14,831	)
Payments for investments and advances (other than financial service business)		(30,849	)		(14,772	)		(182	)
Proceeds from maturities of marketable securities, sales of securities investments		849,609			731,765			9,034
and collections of advances by financial service business
Proceeds from maturities of marketable securities, sales of securities investments		13,188			12,259			151
and collections of advances (other than financial service business)
Proceeds from sales of businesses		5,628			86,311			1,066
Other		(2,918	)		(443	)		(6	)
Net cash used in investing activities		(538,740	)		(582,405	)		(7,190	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		509,874			1,341			17
Payments of long-term debt		(92,383	)		(173,978	)		(2,148	)
Increase (decrease) in short-term borrowings, net		(241,181	)		18,221			225
Increase in deposits from customers in the financial service business, net		182,452			164,601			2,032
Increase in call money and bills sold in the banking business, net		21,400			10,000			123
Dividends paid		(25,116	)		(25,112	)		(310	)
Other		(4,770	)		(5,336	)		(66	)
Net cash provided by (used in) financing activities		350,276			(10,263	)		(127	)

Effect of exchange rate changes on cash and cash equivalents		(9,858	)		(83,086	)		(1,026	)

Net increase (decrease) in cash and cash equivalents		343,996			(271,843	)		(3,356	)
Cash and cash equivalents at beginning of the fiscal year		660,789			1,191,608			14,711

Cash and cash equivalents at end of the period	¥	1,004,785		¥	919,765		$	11,355

F-4

Business Segment Information
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue	2009			2010			Change			2010
Consumer, Professional & Devices
Customers	¥	960,207		¥	1,034,235			+7.7	%	$	12,768
Intersegment		86,549			56,707						700
Total		1,046,756			1,090,942			+4.2			13,468

Networked Products & Services
Customers		580,535			537,542			-7.4			6,636
Intersegment		24,939			29,016						359
Total		605,474			566,558			-6.4			6,995

Pictures
Customers		203,190			149,016			-26.7			1,840
Intersegment		-			-						-
Total		203,190			149,016			-26.7			1,840

Music
Customers		160,813			136,229			-15.3			1,682
Intersegment		2,662			3,603						44
Total		163,475			139,832			-14.5			1,726

Financial Services
Customers		202,580			207,030			+2.2			2,556
Intersegment		3,027			2,093						26
Total		205,607			209,123			+1.7			2,582

All Other
Customers		116,842			115,193			-1.4			1,422
Intersegment		23,843			22,215						274
Total		140,685			137,408			-2.3			1,696

Corporate and elimination		(127,322	)		(86,633	)		-			(1,069	)
Consolidated total	¥	2,237,865		¥	2,206,246			-1.4	%	$	27,238

	Consumer, Professional & Devices ("CPD") intersegment amounts primarily consist of transactions with the Networked Products & Services ("NPS") segment.
	NPS intersegment amounts primarily consist of transactions with the CPD segment.
	All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the NPS segment.
	Corporate and elimination includes certain brand and patent royalty income.

Operating income (loss)	2009			2010			Change			2010
Consumer, Professional & Devices	¥	50,825		¥	26,823			-47.2	%	$	331
Networked Products & Services		19,455			45,708			+134.9			564
Pictures		14,121			4,697			-66.7			58
Music		23,119			19,485			-15.7			241
Financial Services		35,045			32,734			-6.6			404
Equity in net income (loss) of Sony Ericsson		(10,227	)		409			-			5
All Other		9,690			9,143			-5.6			113
Total		142,028			138,999			-2.1			1,716

Corporate and elimination		4,075			(1,477	)		-			(18	)
Consolidated total	¥	146,103		¥	137,522			-5.9	%	$	1,698

	The 2009 segment disclosure above has been restated to reflect the change in business segment classification discussed in Note 5.
	Operating income is Sales and operating revenue less Costs and expenses, and includes Equity in net income (loss) of affiliated companies.
	Corporate and elimination includes certain restructuring costs and other corporate expenses, which are attributable principally to headquarters and are not allocated to segments.
	As a result of a modification of internal management reporting during the previous fiscal year, certain amounts previously included within corporate and elimination have been reclassified into the segment operating income for all periods presented. The revision had no impact on the consolidated results.

F-5

Business Segment Information
	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sales and operating revenue	2009			2010			Change			2010
Consumer, Professional & Devices
Customers	¥	2,488,179		¥	2,655,803			+6.7	%	$	32,788
Intersegment		262,952			209,925						2,591
Total		2,751,131			2,865,728			+4.2			35,379

Networked Products & Services
Customers		1,155,131			1,191,980			+3.2			14,716
Intersegment		48,101			69,641						860
Total		1,203,232			1,261,621			+4.9			15,576

Pictures
Customers		509,646			425,886			-16.4			5,258
Intersegment		-			-						-
Total		509,646			425,886			-16.4			5,258

Music
Customers		388,613			351,149			-9.6			4,335
Intersegment		8,161			9,942						123
Total		396,774			361,091			-9.0			4,458

Financial Services
Customers		625,238			593,104			-5.1			7,322
Intersegment		10,022			6,886						85
Total		635,260			599,990			-5.6			7,407

All Other
Customers		290,461			302,007			+4.0			3,728
Intersegment		58,281			54,100						668
Total		348,742			356,107			+2.1			4,396

Corporate and elimination		(345,857	)		(269,976	)		-			(3,333	)
Consolidated total	¥	5,498,928		¥	5,600,447			+1.8	%	$	69,141

	Consumer, Professional & Devices ("CPD") intersegment amounts primarily consist of transactions with the Networked Products & Services ("NPS") segment.
	NPS intersegment amounts primarily consist of transactions with the CPD segment.
	All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the NPS segment.
	Corporate and elimination includes certain brand and patent royalty income.

Operating income (loss)	2009			2010			Change			2010
Consumer, Professional & Devices	¥	48,446		¥	93,768			+93.6	%	$	1,158
Networked Products & Services		(76,300	)		48,849			-			603
Pictures		9,543			2,733			-71.4			34
Music		37,121			35,081			-5.5			433
Financial Services		116,056			105,719			-8.9			1,305
Equity in net income (loss) of Sony Ericsson		(35,570	)		3,633			-			45
All Other		1,685			6,454			+283.0			79
Total		100,981			296,237			+193.4			3,657

Corporate and elimination		(13,170	)		(23,048	)		-			(284	)
Consolidated total	¥	87,811		¥	273,189			+211.1	%	$	3,373

	The 2009 segment disclosure above has been restated to reflect the change in business segment classification discussed in Note 5.
	Operating income is Sales and operating revenue less Costs and expenses, and includes Equity in net income (loss) of affiliated companies.
	Corporate and elimination includes certain restructuring costs and other corporate expenses, which are attributable principally to headquarters and are not allocated to segments.
	As a result of a modification of internal management reporting during the previous fiscal year, certain amounts previously included within corporate and elimination have been reclassified into the segment operating income for all periods presented. The revision had no impact on the consolidated results.

F-6

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)	2009		2010		Change			2010

Consumer, Professional & Devices
Televisions	¥	346,432	¥	416,914		+20.3	%	$	5,147
Digital Imaging		184,464		188,477		+2.2			2,327
Audio and Video		158,439		154,693		-2.4			1,910
Semiconductors		74,281		93,187		+25.5			1,150
Components		114,728		104,060		-9.3			1,285
Professional Solutions		78,202		73,398		-6.1			906
Other		3,661		3,506		-4.2			43
Total		960,207		1,034,235		+7.7			12,768

Networked Products & Services
Game		355,221		323,078		-9.0			3,989
PC and Other Networked Businesses		225,314		214,464		-4.8			2,647
Total		580,535		537,542		-7.4			6,636

Pictures		203,190		149,016		-26.7			1,840
Music		160,813		136,229		-15.3			1,682
Financial Services		202,580		207,030		+2.2			2,556
All Other		116,842		115,193		-1.4			1,422
Corporate		13,698		27,001		+97.1			334
Consolidated total	¥	2,237,865	¥	2,206,246		-1.4	%	$	27,238

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sales and operating revenue (to external customers)	2009		2010		Change			2010

Consumer, Professional & Devices
Televisions	¥	803,052	¥	969,669		+20.7	%	$	11,971
Digital Imaging		530,807		523,200		-1.4			6,459
Audio and Video		358,953		342,354		-4.6			4,227
Semiconductors		217,047		276,914		+27.6			3,419
Components		352,267		314,911		-10.6			3,888
Professional Solutions		216,490		214,758		-0.8			2,651
Other		9,563		13,997		+46.4			173
Total		2,488,179		2,655,803		+6.7			32,788

Networked Products & Services
Game		662,550		636,512		-3.9			7,858
PC and Other Networked Businesses		492,581		555,468		+12.8			6,858
Total		1,155,131		1,191,980		+3.2			14,716

Pictures		509,646		425,886		-16.4			5,258
Music		388,613		351,149		-9.6			4,335
Financial Services		625,238		593,104		-5.1			7,322
All Other		290,461		302,007		+4.0			3,728
Corporate		41,660		80,518		+93.3			994
Consolidated total	¥	5,498,928	¥	5,600,447		+1.8	%	$	69,141

The above table includes a breakdown of CPD segment and NPS segment sales and operating revenue to customers in the Business Segment Information on pages F-5 and F-6.

Sony management views the CPD segment and the NPS segment as single operating segments. However, Sony believes that the breakdown of CPD segment and NPS segment sales and operating revenue to customers in this table is useful to investors in understanding sales by product category in these business segments. Additionally, Sony has partially realigned its product category configuration from the first quarter of the fiscal year ending March 31, 2011. In connection with the realignment, all prior period sales amounts by product category in the table above have been restated to conform to the current presentation. In the CPD segment, Televisions includes LCD televisions; Digital Imaging includes compact digital cameras, interchangeable single lens cameras and video cameras; Audio and Video includes home audio, Blu-ray disc players and recorders; Semiconductors includes image sensors and small and medium sized LCD panels; Components includes batteries, recording media and data recording systems, and Professional Solutions includes broadcast- and professional-use products. In the NPS segment, Game includes game consoles and software; PC and Other Networked Businesses includes personal computers and memory-based portable audio devices.

F-7

Geographic Information
	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
Sales and operating revenue (to external customers)	2009		2010		Change			2010
Japan	¥	584,359	¥	654,682		+12.0	%	$	8,083
United States		524,511		444,892		-15.2			5,492
Europe		592,571		539,875		-8.9			6,665
Asia-Pacific		320,643		335,415		+4.6			4,141
Other Areas		215,781		231,382		+7.2			2,857
Total	¥	2,237,865	¥	2,206,246		-1.4	%	$	27,238

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
Sales and operating revenue (to external customers)	2009		2010		Change			2010
Japan	¥	1,570,690	¥	1,648,955		+5.0	%	$	20,357
United States		1,229,085		1,142,356		-7.1			14,103
Europe		1,285,765		1,218,525		-5.2			15,044
Asia-Pacific		888,244		999,234		+12.5			12,336
Other Areas		525,144		591,377		+12.6			7,301
Total	¥	5,498,928	¥	5,600,447		+1.8	%	$	69,141

The 2009 geographic information in the table above has been restated to reflect the change in geographic classification.
Classification of Geographic Information shows sales and operating revenue recognized by location of customers.
Major areas in each geographic segment excluding Japan and United States are as follows:
(1) Europe:	United Kingdom, France, Germany, Russia and Spain
(2) Asia-Pacific:	China, Taiwan, India, South Korea and Oceania
(3) Other Areas:	The Middle East/Africa, Brazil, Mexico and Canada

F-8

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 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 Financial Services are eliminated in the consolidated figures shown below.

Condensed Balance Sheet
	(Millions of yen, millions of U.S. dollars)
Financial Services	March 31		December 31
ASSETS	2010		2010		2010
Current assets:
Cash and cash equivalents	¥	206,742	¥	145,900	$	1,801
Marketable securities		576,129		644,217		7,953
Other		265,465		238,575		2,946
		1,048,336		1,028,692		12,700

Investments and advances		4,967,125		5,410,989		66,802
Property, plant and equipment		34,725		30,346		375
Other assets:
Deferred insurance acquisition costs		418,525		425,162		5,249
Other		108,421		63,191		780
		526,946		488,353		6,029
	¥	6,577,132	¥	6,958,380	$	85,906
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	86,102	¥	61,297	$	757
Notes and accounts payable, trade		13,709		3,857		48
Deposits from customers in the banking business		1,509,488		1,608,837		19,862
Other		164,545		203,360		2,510
		1,773,844		1,877,351		23,177

Long-term debt		42,536		25,026		309
Future insurance policy benefits and other		3,876,292		4,118,705		50,848
Other		201,825		203,386		2,511
Total liabilities		5,894,497		6,224,468		76,845

Equity:
Sony Corporation's stockholders' equity		681,500		732,644		9,045
Noncontrolling interests		1,135		1,268		16
Total equity		682,635		733,912		9,061

	¥	6,577,132	¥	6,958,380	$	85,906

F-9

	(Millions of yen, millions of U.S. dollars)
Sony without Financial Services	March 31		December 31
ASSETS	2010		2010		2010
Current assets:
Cash and cash equivalents	¥	984,866	¥	773,865	$	9,554
Marketable securities		3,364		3,051		38
Notes and accounts receivable, trade		887,694		1,042,923		12,876
Other		1,243,345		1,416,777		17,490
		3,119,269		3,236,616		39,958

Film costs		310,065		276,461		3,413
Investments and advances		376,669		350,489		4,327
Investments in Financial Services, at cost		116,843		115,810		1,430
Property, plant and equipment		973,226		879,916		10,863
Other assets		1,626,764		1,481,570		18,291
	¥	6,522,836	¥	6,340,862	$	78,282
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	230,631	¥	173,664	$	2,144
Notes and accounts payable, trade		804,336		880,707		10,873
Other		1,291,481		1,290,443		15,931
		2,326,448		2,344,814		28,948

Long-term debt		893,418		798,402		9,857
Accrued pension and severance costs		283,382		252,193		3,113
Other		299,808		297,736		3,676
Total liabilities		3,803,056		3,693,145		45,594

Equity:
Sony Corporation's stockholders' equity		2,662,712		2,584,853		31,912
Noncontrolling interests		57,068		62,864		776
Total equity		2,719,780		2,647,717		32,688

	¥	6,522,836	¥	6,340,862	$	78,282

	(Millions of yen, millions of U.S. dollars)
Consolidated	March 31		December 31
ASSETS	2010		2010		2010
Current assets:
Cash and cash equivalents	¥	1,191,608	¥	919,765	$	11,355
Marketable securities		579,493		647,268		7,991
Notes and accounts receivable, trade		891,625		1,042,903		12,876
Other		1,470,146		1,625,626		20,069
		4,132,872		4,235,562		52,291

Film costs		310,065		276,461		3,413
Investments and advances		5,299,393		5,727,562		70,711
Property, plant and equipment		1,007,951		910,262		11,238
Other assets:
Deferred insurance acquisition costs		418,525		425,162		5,249
Other		1,697,308		1,511,199		18,656
		2,115,833		1,936,361		23,905
	¥	12,866,114	¥	13,086,208	$	161,558
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	284,607	¥	212,459	$	2,622
Notes and accounts payable, trade		817,118		884,564		10,921
Deposits from customers in the banking business		1,509,488		1,608,837		19,862
Other		1,448,712		1,486,574		18,353
		4,059,925		4,192,434		51,758

Long-term debt		924,207		819,332		10,115
Accrued pension and severance costs		295,526		265,265		3,275
Future insurance policy benefits and other		3,876,292		4,118,705		50,848
Other		424,609		423,680		5,231
Total liabilities		9,580,559		9,819,416		121,227

Equity:
Sony Corporation's stockholders' equity		2,965,905		2,920,376		36,054
Noncontrolling interests		319,650		346,416		4,277
Total equity		3,285,555		3,266,792		40,331

	¥	12,866,114	¥	13,086,208	$	161,558

F-10

Condensed Statements of Income
	(Millions of yen, millions of U.S. dollars)
Financial Services	Three months ended December 31
	2009			2010			Change			2010

Financial service revenue	¥	205,607		¥	209,123			+1.7	%	$	2,582
Financial service expenses		170,243			175,915			+3.3			2,172
Equity in net loss of affiliated companies		(319	)		(474	)		-			(6	)
Operating income		35,045			32,734			-6.6			404
Other income (expenses), net		(41	)		(35	)		-			(0	)
Income before income taxes		35,004			32,699			-6.6			404
Income taxes and other		12,303			12,952			+5.3			160
Net income attributable to Sony Corporation's stockholders	¥	22,701		¥	19,747			-13.0	%	$	244

	(Millions of yen, millions of U.S. dollars)
Sony without Financial Services	Three months ended December 31
	2009			2010			Change			2010

Net sales and operating revenue	¥	2,037,360		¥	2,001,098			-1.8	%	$	24,705
Costs and expenses		1,921,097			1,899,993			-1.1			23,457
Equity in net income (loss) of affiliated companies		(5,608	)		3,064			-			38
Operating income		110,655			104,169			-5.9			1,286
Other income (expenses), net		(21,745	)		(5,283	)		-			(65	)
Income before income taxes		88,910			98,886			+11.2			1,221
Income taxes and other		23,151			38,021			+64.2			470
Net income attributable to Sony Corporation's stockholders	¥	65,759		¥	60,865			-7.4	%	$	751

	(Millions of yen, millions of U.S. dollars)
Consolidated	Three months ended December 31
	2009			2010			Change			2010

Financial service revenue	¥	202,580		¥	207,030			+2.2	%	$	2,556
Net sales and operating revenue		2,035,285			1,999,216			-1.8			24,682
		2,237,865			2,206,246			-1.4			27,238
Costs and expenses		2,085,835			2,071,314			-0.7			25,572
Equity in net income (loss) of affiliated companies		(5,927	)		2,590			-			32
Operating income		146,103			137,522			-5.9			1,698
Other income (expenses), net		(22,238	)		(5,987	)		-			(74	)
Income before income taxes		123,865			131,535			+6.2			1,624
Income taxes and other		44,698			59,201			+32.4			731
Net income attributable to Sony Corporation's stockholders	¥	79,167		¥	72,334			-8.6	%	$	893

F-11

Condensed Statements of Income
	(Millions of yen, millions of U.S. dollars)
Financial Services	Nine months ended December 31
	2009			2010			Change			2010

Financial service revenue	¥	635,260		¥	599,990			-5.6	%	$	7,407
Financial service expenses		518,254			492,974			-4.9			6,086
Equity in net loss of affiliated companies		(950	)		(1,297	)		-			(16	)
Operating income		116,056			105,719			-8.9			1,305
Other income (expenses), net		(863	)		(21	)		-			(0	)
Income before income taxes		115,193			105,698			-8.2			1,305
Income taxes and other		39,724			40,602			+2.2			501
Net income attributable to Sony Corporation's stockholders	¥	75,469		¥	65,096			-13.7	%	$	804

	(Millions of yen, millions of U.S. dollars)
Sony without Financial Services	Nine months ended December 31
	2009			2010		Change			2010

Net sales and operating revenue	¥	4,878,768		¥	5,011,810		+2.7	%	$	61,874
Costs and expenses		4,875,831			4,861,796		-0.3			60,022
Equity in net income (loss) of affiliated companies		(32,382	)		15,620		-			193
Operating income (loss)		(29,445	)		165,634		-			2,045
Other income (expenses), net		(7,841	)		5,835		-			72
Income (loss) before income taxes		(37,286	)		171,469		-			2,117
Income taxes and other		(15,416	)		78,633		-			971
Net income (loss) attributable to Sony Corporation's stockholders	¥	(21,870	)	¥	92,836		-	%	$	1,146

	(Millions of yen, millions of U.S. dollars)
Consolidated	Nine months ended December 31
	2009			2010			Change			2010

Financial service revenue	¥	625,238		¥	593,104			-5.1	%	$	7,322
Net sales and operating revenue		4,873,690			5,007,343			+2.7			61,819
		5,498,928			5,600,447			+1.8			69,141
Costs and expenses		5,377,785			5,341,581			-0.7			65,945
Equity in net income (loss) of affiliated companies		(33,332	)		14,323			-			177
Operating income		87,811			273,189			+211.1			3,373
Other income (expenses), net		(13,916	)		(34	)		-			(1	)
Income before income taxes		73,895			273,155			+269.7			3,372
Income taxes and other		58,129			143,938			+147.6			1,777
Net income attributable to Sony Corporation's stockholders	¥	15,766		¥	129,217			+719.6	%	$	1,595

F-12

Condensed Statements of Cash Flows
	(Millions of yen, millions of U.S. dollars)
Financial Services	Nine months ended December 31
	2009			2010			2010

Net cash provided by operating activities	¥	262,599		¥	282,243		$	3,485
Net cash used in investing activities		(272,510	)		(468,266	)		(5,781	)
Net cash provided by financing activities		175,901			125,181			1,545
Net increase (decrease) in cash and cash equivalents		165,990			(60,842	)		(751	)
Cash and cash equivalents at beginning of the fiscal year		95,794			206,742			2,552
Cash and cash equivalents at end of the period	¥	261,784		¥	145,900		$	1,801

	(Millions of yen, millions of U.S. dollars)
Sony without Financial Services	Nine months ended December 31
	2009			2010			2010

Net cash provided by operating activities	¥	285,488		¥	130,726		$	1,614
Net cash used in investing activities		(249,262	)		(100,149	)		(1,236	)
Net cash provided by (used in) financing activities		151,638			(158,492	)		(1,957	)
Effect of exchange rate changes on cash and cash equivalents		(9,858	)		(83,086	)		(1,026	)
Net increase (decrease) in cash and cash equivalents		178,006			(211,001	)		(2,605	)
Cash and cash equivalents at beginning of the fiscal year		564,995			984,866			12,159
Cash and cash equivalents at end of the period	¥	743,001		¥	773,865		$	9,554

	(Millions of yen, millions of U.S. dollars)
Consolidated	Nine months ended December 31
	2009			2010			2010

Net cash provided by operating activities	¥	542,318		¥	403,911		$	4,987
Net cash used in investing activities		(538,740	)		(582,405	)		(7,190	)
Net cash provided by (used in) financing activities		350,276			(10,263	)		(127	)
Effect of exchange rate changes on cash and cash equivalents		(9,858	)		(83,086	)		(1,026	)
Net increase (decrease) in cash and cash equivalents		343,996			(271,843	)		(3,356	)
Cash and cash equivalents at beginning of the fiscal year		660,789			1,191,608			14,711
Cash and cash equivalents at end of the period	¥	1,004,785		¥	919,765		$	11,355

F-13

(Notes)

1.	U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥81 = U.S. $1, the approximate Tokyo foreign exchange market rate as of December 31, 2010.

2.	As of December 31, 2010, Sony had 1,266 consolidated subsidiaries (including variable interest entities) and 84 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
	2009		2010
Net income attributable to Sony Corporation's stockholders
— Basic		1,003,514		1,003,562
— Diluted		1,005,137		1,005,168

	(Thousands of shares)
	Nine months ended December 31
		2009		2010
Net income attributable to Sony Corporation's stockholders
— Basic		1,003,522		1,003,552
— Diluted		1,005,145		1,004,974

The dilutive effect in the weighted-average number of outstanding shares mainly resulted from convertible bonds.

4.	Recently adopted accounting pronouncements:

Multiple element arrangements and software deliverables -

In October 2009, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance for arrangements with multiple deliverables. Specifically, the new standard requires an entity to allocate consideration at the inception of an arrangement to all of its deliverables based on their relative selling prices. In the absence of vendor-specific objective evidence or third-party evidence of the selling prices, consideration must be allocated to the deliverables based on management’s best estimate of the selling prices. In addition, the guidance eliminates the use of the residual method of allocation. Also in October 2009, the FASB issued accounting guidance which changes revenue recognition for tangible products containing software and hardware elements. Specifically, tangible products containing software and hardware that function together to deliver the tangible products’ essential functionality are scoped out of the existing software revenue recognition guidance and are accounted for under the revenue recognition guidance for multiple element arrangements. Sony adopted the new guidance on April 1, 2010. The adoption of the new guidance did not have a material impact on Sony’s results of operations and financial position.

Transfers of financial assets -

In June 2009, the FASB issued new accounting guidance on accounting for transfers of financial assets. This guidance amends previous guidance by including: the elimination of the qualifying special-purpose entity (QSPE) concept; a new participating interest definition that must be met for transfers of portions of financial assets to be eligible for sale accounting; clarifications and changes to the derecognition criteria for a transfer to be accounted for as a sale; and a change to the amount of recognized gain or loss on a transfer of financial assets accounted for as a sale when beneficial interests are received by the transferor. Additionally, the guidance requires new disclosures regarding an entity’s involvement in a transfer of financial assets. Finally, existing QSPEs must be evaluated for consolidation in accordance with the applicable consolidation guidance upon the elimination of this concept. This guidance is effective for Sony as of April 1, 2010. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

Variable interest entities -

In June 2009, the FASB issued new accounting guidance for determining whether to consolidate a variable interest entity (“VIE”). This guidance changes the approach for determining the primary beneficiary of a VIE from a quantitative risk and reward model to a qualitative model based on control, and requires an ongoing reassessment of whether an entity is the primary beneficiary. This guidance is effective for Sony as of April 1, 2010. The adoption of this guidance did not have a material impact on Sony’s results of operations and financial position.

Sony realigned its reportable segments from the first quarter of the fiscal year ending March 31, 2011, to reflect modifications to the organizational structure as of April 1, 2010, primarily repositioning the operations of the previously reported B2B & Disc Manufacturing segment. In connection with this realignment, the Consumer Products & Devices segment was renamed the Consumer, Professional & Devices (“CPD”) segment. The CPD segment includes televisions, digital imaging, audio and video, semiconductors and components as well as professional solutions (the B2B business which was previously incorporated in the B2B & Disc Manufacturing segment). The equity results of S-LCD Corporation are also included within the CPD segment. The disc manufacturing business previously included in the B2B & Disc Manufacturing segment is now included in All Other. The Networked Products & Services, Pictures, Music and Financial Services segments remain unchanged. The equity earnings from Sony Ericsson Mobile Communications AB continue to be presented as a separate segment. In connection with the realignment, all prior period amounts in the segment disclosures have been revised to conform to the current 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 will be separately reported from the provision based on the ETR in the interim period in which they occur.

Other Consolidated Financial Data

	(Millions of yen, millions of U.S. dollars)
	Three months ended December 31
	2009			2010			2010
Capital expenditures (additions to property, plant and equipment)	¥	43,681		¥	42,153		$	520
Depreciation and amortization expenses*		95,039			77,962			962
(Depreciation expenses for property, plant and equipment)		(66,144	)		(54,274	)		(670	)
Research and development expenses		106,733			106,080			1,310

	(Millions of yen, millions of U.S. dollars)
	Nine months ended December 31
	2009			2010			2010
Capital expenditures (additions to property, plant and equipment)	¥	148,785		¥	128,218		$	1,583
Depreciation and amortization expenses*		276,065			245,637			3,033
(Depreciation expenses for property, plant and equipment)		(194,953	)		(159,345	)		(1,967	)
Research and development expenses		315,714			312,093			3,853

* Including amortization expenses for intangible assets and for deferred insurance acquisition costs.