This summary is based on the fourth quarter fiscal 2008 earnings call conducted by Sony Corp. (SNE: chart) on May 14, 2008.

Management:

EVP and CFO: Nobuyuki Oneda
EVP and CFO – Sony Corporation of America: Robert Wiesenthal
Senior VP, IR: Sam Levenson

Key Investor Issues:

- The EPS were ¥120.29 in 2007 versus ¥351.10 in 2008.
- Sales increased by 6.9% from ¥8,295.7 billion last year to ¥8,871.4 billion this year.
- The company expects to pay a total annual dividend of ¥50 for the year ending 2009.

Fiscal 2008 Financial Highlights

- The sales and operating revenue rose 6.9% compared to the previous fiscal year.
- The operating income increased 421.9% year-on-year, resulting in the company’s second highest level of operating income.

- The income before taxes was ¥466.3 billion ($4,663 million), representing a year-on-year increase of 357%. The increase was a result of increase in operating income and an improvement of ¥61.5 billion ($615 million) in the net effect of other income and expenses.
- The income taxes during the current fiscal year were ¥203.5 billion ($2,035 million) and the effective tax rate was 43.6%.

- The equity in net income of affiliated companies rose 28.2% year-on-year to ¥100.8 billion ($1,008 million).
- The company recorded equity in net income for Sony Ericsson Mobile Communications AB of ¥79.5 billion ($795 million). This is a decrease of ¥5.8 billion year-on-year due to higher R&D expenses as a percentage of sales.
- The company plans to pay a total annual dividend for the fiscal year ending March 31, 2009 of ¥50 per share, comprising an interim dividend of ¥30 per share and a year end dividend of ¥20 per share.

Fourth-Quarter Financial Highlights:

- Sales for the quarter were ¥1,952.8 million ($19,528 million), a decrease of 6.5% compared with the same period last year.
- An operating loss of ¥4.7 billion ($47 million) was reported. This represents an increase of ¥108.7 billion on a year-on-year basis.
- The quarterly income before taxes was ¥6.2 billion ($62 million), an increase of ¥111.9 billion from the ¥105.7 billion loss recorded in the same quarter last year.
- The fourth quarter had an income tax benefit of ¥6.3 billion ($63 million) due to the reversal of valuation allowances at certain Sony subsidiaries.
- The management reported equity in net income of affiliated companies of ¥10.8 billion ($108 million), representing a decrease of 11.9% from the same period last year.
- The net income for the quarter was ¥29 billion ($290 million), a ¥96.6 billion improvement from the ¥67.6 billion loss recorded in the fourth quarter last year.

Performance Analysis of Segments

Electronics

- The sales and operating revenue grew by 8.9% to ¥6,613.8 billion ($66,138 million).
- The sales to outside customers increased 9% year-on-year.
- The operating income was ¥356 billion ($3,560 million), a 121.8% year-on-year. The increase was the result of the increase in sales as well as the positive impact from depreciation of the yen against the euro.
- The inventory as of March 31, 2008 was ¥822 billion ($8,220 million), which represents ¥96.2 billion or 13.3% compared with March 31, 2007 level and decreased ¥71.3 billion or 8% compared with inventory levels as of December 31, 2007.

- Sony Ericsson recorded a 7% year-on-year sales increase helped by strong sales of Walkman and Cyber-shot phones.
- The sales and operating revenue for the year was €12,693 million versus €11,892 million in 2007.
- The income before taxes dipped 7% year-on-year to €1,405 million due to higher R&D expenses as a percentage of sales.

Game

- Sales increased 26.3% year-on-year to ¥1,284.2 billion ($12,842 million).
- The overall hardware sales increased as a result of a significant increase in sales of PS3, in addition to higher sales of PSP (PlayStation Portable).
- The sales of PS2 decreased year-on-year.
- The overall software sales increased as a result of an increase in PS3 software sales.

- The segment posted an operating loss of ¥124.5 billion ($1,245 million), an improvement of ¥107.8 billion year-on-year and profit was recorded in the second half of the current fiscal year.
- The significant decrease in operating loss was due to a decrease in the operating losses of the PS3 as a result of successful PS3 hardware cost reductions and increased sales of PS3 software, as well as the strong performance of the PSP business with the introduction of the new model.

- The PS2 worldwide hardware unit sales were 13.73 million units, a year-on-year decrease of 0.98 million units.
- The PSP worldwide hardware unit sales were 13.89 million units, representing an increase of 4.36 million units on a year-on-year basis.
- The PS3 business recorded worldwide hardware unit sales of 9.24 million units, being a year-on-year increase of 5.63 million units.
- On the software side, the PS2 worldwide software unit sales decreased on a year-on-year basis by 39.5 million units to 154 million units.
- The PSP worldwide software unit sales increased by 0.8 million units on a year-on-year basis to 55.5 million units.
- The PS3 business recorded worldwide software unit sales of 57.9 million units, an increase of 44.6 million units on a year-on-year basis.

- The segment inventory as of end of March 31, 2008 was ¥181.6 billion ($1,816 million), which represents a ¥17.3 billion or 8.7% decrease versus March 31, 2007 levels.
- The inventory dipped by ¥1.4 billion or 0.8% compared with December 31, 2007 levels.