Sony FY2020 Financial Results


Results for the fiscal year ended March 31, 2021 (Before segment realignment)
Sales decreased 70.5 billion yen (4%) year-on-year to 1 trillion 920.7 billion yen (a 3% decrease on a constant currency basis). This decrease in sales was primarily due to a decrease in sales of digital cameras, broadcast- and professional-use products and Audio and Video resulting from lower unit sales as well as the impact of foreign exchange rates, partially offset by an increase in sales of televisions resulting from an improvement in the product mix.

Operating income increased 51.9 billion yen year-on-year to 139.2 billion yen. This significant increase in operating income was primarily due to reductions in operating costs mainly within Mobile Communications, as well as an improvement in the product mix mainly of televisions and digital cameras, partially offset by the impact of the above-mentioned decrease in sales. During the current fiscal year, there was a 6.6 billion yen positive impact from foreign exchange rate fluctuations.

Forecast for the fiscal year ending March 31, 2022 (Reclassified*)
Sales are expected to increase mainly due to an increase in sales of televisions resulting from an improvement in the product mix and an increase in sales of digital cameras resulting from higher unit sales, as well as the impact of foreign exchange rates. Operating income is expected to increase year-on-year primarily due to the abovementioned increase in sales as well as the positive impact of foreign exchange rates, partially offset by an increase in costs resulting from an increase in sales.

* A reconciliation between the sales and operating income (loss) of the EP&S segment and the reclassified EP&S segment for the fiscal year ended March 31, 2021 is on page 8. The reconciliation in the following table includes the sales, cost of goods sold, and selling, general and administrative expenses related to businesses and functions which were newly included in the EP&S segment as a result of changes to the organizational structure of the segment announced on November 17, 2020 in the news release entitled “Sony Group Organizational Changes and Executive Appointments – Transition to new management structure for Electronics Products & Solutions business.” These amounts have been deducted from All Other, Corporate and elimination (Reclassified)

• Next is the Electronics Products & Solutions (“EP&S”) segment.
• FY20 sales decreased 4% year-on-year to 1 trillion 920.7 billion yen primarily due to a decrease in unit sales, especially of digital cameras, and the impact of foreign exchange rates.
• Operating income increased a significant 51.9 billion yen year-on-year to 139.2 billion yen primarily due to a reduction of operating costs, mainly in Mobile Communications, and an improvement in the product mix for TVs and other products, partially offset by the impact of the decrease in sales
• FY21 sales are expected to be 2 trillion 260 billion yen and operating income is expected to be 148 billion yen.
• Excluding the impact of the change in segmentation resulting from the recent organizational change, we expect that sales will increase 9% year-on-year and operating income will increase 13.9 billion yen year-on-year


Results for the fiscal year ended March 31, 2021
Sales decreased 58.1 billion yen (5%) year-on-year to 1 trillion 12.5 billion yen (a 3% decrease on a constant currency basis). This decrease in sales was mainly due to a decrease in sales of image sensors for mobile products reflecting a deterioration of the product mix, partially offset by an increase in unit sales. This decrease in sales was also due to the impact of foreign exchange rates and a decrease in sales of image sensors for digital cameras reflecting a decrease in unit sales primarily as a result of the impact of COVID-19.

Operating income decreased 89.7 billion yen year-on-year to 145.9 billion yen. This significant decrease was mainly due to an increase in research and development expenses as well as in depreciation and amortization expenses, the impact of the above-mentioned decrease in sales, the negative impact of foreign exchange rates and the above-mentioned 7.2 billion yen of inventory write-downs of certain image sensors for mobile products whose shipments were suspended as a result of U.S. export restrictions. During the current fiscal year, there was an 8.6 billion yen negative impact from foreign exchange rate fluctuations.

Forecast for the fiscal year ending March 31, 2022
Sales are expected to increase primarily due to an expected increase in sales of image sensors for mobile products due to an increase in unit sales, partially offset by a deterioration of the product mix, as well as an expected increase in sales of image sensors for digital cameras due to an increase in unit sales. Operating income is expected to decrease year-on-year primarily due to an increase in research and development expenses as well as in depreciation and amortization expenses, partially offset by the impact of the above-mentioned increase in sales

• Next is the Imaging & Sensing Solutions segment.
• FY20 sales decreased 5% year-on-year to 1 trillion 12.5 billion yen primarily due to lower sales of image sensors for mobile.
• Operating income decreased a significant 89.7 billion yen year-on-year to 145.9 billion yen primarily due to an increase in research and development expenses and depreciation, as well as the impact of the decrease in sales.
• FY21 sales are expected to increase 12% year-on-year to 1 trillion 130 billion yen and operating income is expected to decrease 5.9 billion yen to 140 billion yen.

via Sony

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