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 October 2019

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/  Hiroki Totoki

                (Signature)

Hiroki Totoki

Senior Executive Vice President and

Chief Financial Officer

Date: October 30, 2019

List of materials

Documents attached hereto:

i) Press release:  Quarterly Financial Statements for the Second Quarter Ended September 30, 2019 And Outlook for the Fiscal Year Ending March 31, 2020 

Quarterly Financial Statements

for the Second Quarter Ended September 30, 2019

And

Outlook for the Fiscal Year Ending March 31, 2020

October 30, 2019

Sony Corporation

Quarterly Financial Statements (Unaudited)	F-1
Consolidated Balance Sheets	F-1
Consolidated Statements of Income (Three months ended September 30)	F-2
Consolidated Statements of Comprehensive Income (Three months ended September 30)	F-2
Consolidated Statements of Income (Six months ended September 30)	F-3
Consolidated Statements of Comprehensive Income (Six months ended September 30)	F-3
Consolidated Statements of Cash Flows (Six months ended September 30)	F-4
Notes to Consolidated Financial Statements	F-5
-Business Segment Information	F-5
-Going Concern Assumption	F-12
-Significant Changes in Shareholders’ Equity	F-12
-Accounting Policies and Other Information	F-12
Outlook for the Fiscal Year Ending March 31, 2020	1
Outlook for the Fiscal Year Ending March 31, 2020	1
Cautionary Statement	4

All amounts are presented on the basis of Generally Accepted Accounting Principles in the U.S. (“U.S. GAAP”).

Sony Corporation and its consolidated subsidiaries are together referred to as “Sony”.

(Unaudited)

Consolidated Financial Statements

Consolidated Balance Sheets

	(Millions of yen)
	March 31			September 30			Change from
ASSETS	2019			2019			March 31, 2019
Current assets:
Cash and cash equivalents	¥	1,470,073		¥	1,252,869		¥	-217,204
Marketable securities		1,324,538			1,445,531			+120,993
Notes and accounts receivable, trade and contract assets		1,091,242			1,176,090			+84,848
Allowance for doubtful accounts		(25,440	)		(24,135	)		+1,305
Inventories		653,278			779,533			+126,255
Other receivables		223,620			234,869			+11,249
Prepaid expenses and other current assets		509,301			543,459			+34,158
Total current assets		5,246,612			5,408,216			+161,604
Film costs		409,005			434,782			+25,777
Investments and advances:
Affiliated companies		163,365			188,423			+25,058
Securities investments and other		11,561,286			12,028,384			+467,098
		11,724,651			12,216,807			+492,156
Property, plant and equipment:
Land		83,992			82,727			-1,265
Buildings		664,157			646,786			-17,371
Machinery and equipment		1,585,382			1,602,882			+17,500
Construction in progress		39,208			49,156			+9,948
		2,372,739			2,381,551			+8,812
Less-Accumulated depreciation		1,595,686			1,571,317			-24,369
		777,053			810,234			+33,181
Other assets:
Operating lease right-of-use assets	－				308,358			+308,358
Finance lease right-of-use assets	－				37,552			+37,552
Intangibles, net		917,966			889,562			-28,404
Goodwill		768,552			749,372			-19,180
Deferred insurance acquisition costs		595,265			605,118			+9,853
Deferred income taxes		202,486			190,808			-11,678
Other		339,996			315,487			-24,509
		2,824,265			3,096,257			+271,992
Total assets	¥	20,981,586		¥	21,966,296		¥	+984,710
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	618,618		¥	875,226		¥	+256,608
Current portion of long-term debt		172,461			31,564			-140,897
Current portion of long-term operating lease liabilities	－				66,477			+66,477
Notes and accounts payable, trade		492,124			610,407			+118,283
Accounts payable, other and accrued expenses		1,693,048			1,499,157			-193,891
Accrued income and other taxes		135,226			197,386			+62,160
Deposits from customers in the banking business		2,302,314			2,365,411			+63,097
Other		666,024			669,810			+3,786
Total current liabilities		6,079,815			6,315,438			+235,623
Long-term debt		568,372			529,561			-38,811
Long-term operating lease liabilities	－				268,007			+268,007
Accrued pension and severance costs		384,232			372,438			-11,794
Deferred income taxes		531,421			517,673			-13,748
Future insurance policy benefits and other		5,642,671			5,912,918			+270,247
Policyholders’ account in the life insurance business		3,048,202			3,161,271			+113,069
Other		281,382			263,172			-18,210
Total liabilities		16,536,095			17,340,478			+804,383
Redeemable noncontrolling interest		8,801			7,528			-1,273
Equity:
Sony Corporation’s stockholders’ equity:
Common stock		874,291			876,579			+2,288
Additional paid-in capital		1,266,874			1,269,813			+2,939
Retained earnings		2,320,586			2,628,516			+307,930
Accumulated other comprehensive income		(610,670	)		(641,696	)		-31,026
Treasury stock, at cost		(104,704	)		(229,782	)		-125,078
		3,746,377			3,903,430			+157,053
Noncontrolling interests		690,313			714,860			+24,547
Total equity		4,436,690			4,618,290			+181,600
Total liabilities and equity	¥	20,981,586		¥	21,966,296		¥	+984,710

 

F -1

 

Consolidated Statements of Income
	(Millions of yen, except per share amounts)
	Three months ended September 30
	2018			2019				Change
Sales and operating revenue:
Net sales		¥	1,809,739		¥	1,725,310		¥	-84,429
Financial services revenue			351,493			375,089			+23,596
Other operating revenue			21,528			21,860			+332
			2,182,760			2,122,259			-60,501
Costs and expenses:
Cost of sales			1,222,744			1,156,980			-65,764
Selling, general and administrative			397,129			354,916			-42,213
Financial services expenses			312,334			336,178			+23,844
Other operating (income) expense, net			13,383			(2,404	)		-15,787
			1,945,590			1,845,670			-99,920
Equity in net income of affiliated companies			2,341			2,366			+25
Operating income			239,511			278,955			+39,444
Other income:
Interest and dividends			4,571			4,953			+382
Gain on equity securities, net			9,935	－					-9,935
Other			1,461			2,036			+575
			15,967			6,989			-8,978
Other expenses:
Interest expenses			3,876			2,784			-1,092
Loss on equity securities, net	－					13,343			+13,343
Foreign exchange loss, net			4,922			7,253			+2,331
Other			282			470			+188
			9,080			23,850			+14,770
Income before income taxes			246,398			262,094			+15,696
Income taxes			59,268			61,927			+2,659
Net income			187,130			200,167			+13,037
Less - Net income attributable to noncontrolling interests			14,129			12,280			-1,849
Net income attributable to Sony Corporation’s
stockholders		¥	173,001		¥	187,887		¥	+14,886
Per share data:
Net income attributable to Sony Corporation’s
stockholders
— Basic		¥	136.38		¥	151.89		¥	+15.51
— Diluted			133.43			148.59			+15.16

Consolidated Statements of Comprehensive Income
	(Millions of yen)
	Three months ended September 30
	2018			2019			Change
Net income	¥	187,130		¥	200,167		¥	+13,037
Other comprehensive income, net of tax –
Unrealized gains (losses) on securities		(24,337	)		13,624			+37,961
Unrealized losses on derivative instruments		(563	)		(1,072	)		-509
Pension liability adjustment		2,467			3,126			+659
Foreign currency translation adjustments		32,168			(21,052	)		-53,220
Total comprehensive income		196,865			194,793			-2,072
Less - Comprehensive income attributable
to noncontrolling interests		5,314			16,475			+11,161
Comprehensive income attributable
to Sony Corporation’s stockholders	¥	191,551		¥	178,318		¥	-13,233

F -2

 

Consolidated Statements of Income
	(Millions of yen, except per share amounts)
	Six months ended September 30
	2018			2019			Change
Sales and operating revenue:
Net sales	¥	3,411,934		¥	3,283,956		¥	-127,978
Financial services revenue		684,733			709,909			+25,176
Other operating revenue		39,717			54,118			+14,401
		4,136,384			4,047,983			-88,401
Costs and expenses:
Cost of sales		2,335,231			2,218,018			-117,213
Selling, general and administrative		746,890			705,083			-41,807
Financial services expenses		604,490			624,671			+20,181
Other operating (income) expense, net		13,058			(5,961	)		-19,019
		3,699,669			3,541,811			-157,858
Equity in net income (loss) of affiliated companies		(2,198	)		3,708			+5,906
Operating income		434,517			509,880			+75,363
Other income:
Interest and dividends		9,305			10,758			+1,453
Gain on equity securities, net		124,714		－				-124,714
Other		2,194			3,155			+961
		136,213			13,913			-122,300
Other expenses:
Interest expenses		7,194			7,664			+470
Loss on equity securities, net	－				13,020			+13,020
Foreign exchange loss, net		3,911			8,949			+5,038
Other		1,141			1,048			-93
		12,246			30,681			+18,435
Income before income taxes		558,484			493,112			-65,372
Income taxes		134,490			126,939			-7,551
Net income		423,994			366,173			-57,821
Less - Net income attributable to noncontrolling interests		24,546			26,164			+1,618
Net income attributable to Sony Corporation’s
stockholders	¥	399,448		¥	340,009		¥	-59,439
Per share data:
Net income attributable to Sony Corporation’s
stockholders
— Basic	¥	315.02		¥	273.52		¥	-41.50
— Diluted		308.17			267.65			-40.52

Consolidated Statements of Comprehensive Income
	(Millions of yen)
	Six months ended September 30
	2018			2019				Change
Net income	¥	423,994			¥	366,173		¥	-57,821
Other comprehensive income, net of tax –
Unrealized gains (losses) on securities		(21,066	)			39,925			+60,991
Unrealized gains (losses) on derivative instruments		915				(308	)		-1,223
Pension liability adjustment		4,743				6,040			+1,297
Foreign currency translation adjustments		40,465				(63,750	)		-104,215
Total comprehensive income		449,051				348,080			-100,971
Less - Comprehensive income attributable
to noncontrolling interests		13,231				39,097			+25,866
Comprehensive income attributable
to Sony Corporation’s stockholders	¥	435,820			¥	308,983		¥	-126,837

F -3

Consolidated Statements of Cash Flows
	(Millions of yen)
	Six months ended September 30
	2018			2019
Cash flows from operating activities:
Net income	¥	423,994		¥	366,173
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization, including amortization of
deferred insurance acquisition costs and contract costs		171,826			189,939
Amortization of film costs		133,892			138,400
Accrual for pension and severance costs, less payments		(5,310	)		(3,744	)
Other operating (income) expense, net		13,058			(5,961	)
(Gain) loss on securities investments, net (other than financial services business)		(124,717	)		12,939
Gain on marketable securities and Securities investments held in the financial
services business, net		(109,791	)		(25,820	)
Deferred income taxes		(3,350	)		(17,978	)
Equity in net (income) loss of affiliated companies, net of dividends		4,559			(924	)
Changes in assets and liabilities:
Increase in notes, accounts receivable, trade and contract assets		(185,855	)		(144,399	)
Increase in inventories		(118,255	)		(144,148	)
Increase in film costs		(190,494	)		(176,002	)
Increase in notes and accounts payable, trade		302,979			128,786
Increase in accrued income and other taxes		62,075			47,557
Increase in future insurance policy benefits and other		368,871			338,457
Increase in deferred insurance acquisition costs		(47,090	)		(48,346	)
Increase in marketable securities held in the life insurance business		(43,949	)		(88,119	)
Increase in other current assets		(72,246	)		(33,747	)
Decrease in other current liabilities		(43,719	)		(167,023	)
Other		(125,649	)		44,445
Net cash provided by operating activities		410,829			410,485
Cash flows from investing activities:
Payments for purchases of fixed assets		(154,819	)		(179,778	)
Proceeds from sales of fixed assets		11,355			10,611
Payments for investments and advances by financial services business		(563,301	)		(681,965	)
Payments for investments and advances
(other than financial services business)		(25,373	)		(32,320	)
Proceeds from sales or return of investments and collections of advances
by financial services business		140,969			138,242
Proceeds from sales or return of investments and collections of advances
(other than financial services business)		1,996			11,627
Proceeds from sales of businesses	－				7,864
Proceeds related to sales of Spotify Technology S.A. Shares		82,467		－
Proceeds from sales of Olympus Corporation Shares	－				80,357
Other		(21,295	)		14,147
Net cash used in investing activities		(528,001	)		(631,215	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		50,958			6,283
Payments of long-term debt		(229,504	)		(186,103	)
Increase in short-term borrowings, net		133,248			257,129
Increase in deposits from customers in the financial services business, net		132,628			110,514
Dividends paid		(18,992	)		(24,994	)
Payments for purchase of treasury stock		(97	)		(125,078	)
Payment for purchase of Nile Acquisition LLC shares from noncontrolling interests		(32,041	)		－
Other		(36,470	)		(8,842	)
Net cash provided by (used in) financing activities		(270	)		28,909
Effect of exchange rate changes on cash and cash equivalents, including restricted		70,344			(26,029	)
Net decrease in cash and cash equivalents, including restricted		(47,098	)		(217,850	)
Cash and cash equivalents, including restricted, at beginning of the fiscal year		1,592,938			1,473,813
Cash and cash equivalents, including restricted, at end of the period		1,545,840			1,255,963
Less - restricted cash and cash equivalents, included in other current assets and other assets		5,061			3,094
Cash and cash equivalents at end of the period	¥	1,540,779		¥	1,252,869

F -4

Notes to Consolidated Financial Statements
Business Segment Information
(Business Segments)
	(Millions of yen)
	Three months ended September 30
Sales and operating revenue	2018			2019			Change
Game & Network Services
Customers	¥	535,754		¥	438,046		¥	-97,708
Intersegment		14,311			16,344			+2,033
Total		550,065			454,390			-95,675
Music
Customers		200,294			216,742			+16,448
Intersegment		3,562			2,533			-1,029
Total		203,856			219,275			+15,419
Pictures
Customers		242,021			260,387			+18,366
Intersegment		(1,150	)		217			+1,367
Total		240,871			260,604			+19,733
Electronics Products & Solutions
Customers		551,005			486,311			-64,694
Intersegment		4,958			7,188			+2,230
Total		555,963			493,499			-62,464
Imaging & Sensing Solutions
Customers		222,924			285,579			+62,655
Intersegment		31,522			25,145			-6,377
Total		254,446			310,724			+56,278
Financial Services
Customers		351,493			375,089			+23,596
Intersegment		1,960			2,092			+132
Total		353,453			377,181			+23,728
All Other
Customers		77,226			57,943			-19,283
Intersegment		11,892			10,954			-938
Total		89,118			68,897			-20,221
Corporate and elimination		(65,012	)		(62,311	)		+2,701
Consolidated total	¥	2,182,760		¥	2,122,259		¥	-60,501

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

Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the Electronics Products & Solutions (“EP&S”) segment.

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

Corporate and elimination includes certain brand and patent royalty income.

	(Millions of yen)
	Three months ended September 30
Operating income (loss)	2018			2019			Change
Game & Network Services	¥	90,622		¥	64,987		¥	-25,635
Music		31,501			37,480			+5,979
Pictures		23,535			39,318			+15,783
Electronics Products & Solutions		16,456			41,387			+24,931
Imaging & Sensing Solutions		47,928			76,378			+28,450
Financial Services		39,160			38,779			-381
All Other		5,042			2,434			-2,608
Total		254,244			300,763			+46,519
Corporate and elimination		(14,733	)		(21,808	)		-7,075
Consolidated total	¥	239,511		¥	278,955		¥	+39,444

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

The 2018 sales and operating revenue and operating income (loss) above has been reclassified to reflect the change in the business segment classification discussed on page F-13.

F -5

(Business Segments)
	(Millions of yen)
	Six months ended September 30
Sales and operating revenue	2018			2019			Change
Game & Network Services
Customers	¥	985,734		¥	879,796		¥	-105,938
Intersegment		36,432			32,055			-4,377
Total		1,022,166			911,851			-110,315
Music
Customers		378,002			416,780			+38,778
Intersegment		7,325			4,748			-2,577
Total		385,327			421,528			+36,201
Pictures
Customers		415,248			446,146			+30,898
Intersegment		704			546			-158
Total		415,952			446,692			+30,740
Electronics Products & Solutions
Customers		1,115,799			966,967			-148,832
Intersegment		8,322			10,447			+2,125
Total		1,124,121			977,414			-146,707
Imaging & Sensing Solutions
Customers		399,597			496,754			+97,157
Intersegment		57,088			44,648			-12,440
Total		456,685			541,402			+84,717
Financial Services
Customers		684,733			709,909			+25,176
Intersegment		3,925			4,207			+282
Total		688,658			714,116			+25,458
All Other
Customers		151,673			118,575			-33,098
Intersegment		20,369			19,913			-456
Total		172,042			138,488			-33,554
Corporate and elimination		(128,567	)		(103,508	)		+25,059
Consolidated total	¥	4,136,384		¥	4,047,983		¥	-88,401

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

I&SS intersegment amounts primarily consist of transactions with the G&NS segment and the EP&S segment.

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

Corporate and elimination includes certain brand and patent royalty income.

	(Millions of yen)
	Six months ended September 30
Operating income (loss)	2018			2019			Change
Game & Network Services	¥	174,072		¥	138,791		¥	-35,281
Music		63,605			75,757			+12,152
Pictures		15,934			39,694			+23,760
Electronics Products & Solutions		49,166			66,453			+17,287
Imaging & Sensing Solutions		77,065			125,906			+48,841
Financial Services		79,741			84,884			+5,143
All Other		5,336			(168	)		-5,504
Total		464,919			531,317			+66,398
Corporate and elimination		(30,402	)		(21,437	)		+8,965
Consolidated total	¥	434,517		¥	509,880		¥	+75,363

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

The 2018 sales and operating revenue and operating income (loss) above has been reclassified to reflect the change in the business segment classification discussed on page F-13.

F -6

(Sales to Customers by Product Category)

The following table is a breakdown of sales and operating revenue to external customers for each segment.  Sony management views each segment as a single operating segment.

	(Millions of yen)
	Three months ended September 30
Sales and operating revenue (to external customers)	2018		2019		Change
Game & Network Services
Digital Software and Add-on Content	¥	258,267	¥	226,889	¥	-31,378
Network Services		75,997		84,377		+8,380
Hardware and Others		201,490		126,780		-74,710
Total		535,754		438,046		-97,708
Music
Recorded Music		105,463		112,202		+6,739
Music Publishing		19,436		38,407		+18,971
Visual Media and Platform		75,395		66,133		-9,262
Total		200,294		216,742		+16,448
Pictures
Motion Pictures		109,334		140,371		+31,037
Television Productions		68,482		61,546		-6,936
Media Networks		64,205		58,470		-5,735
Total		242,021		260,387		+18,366
Electronics Products & Solutions
Televisions		191,705		166,479		-25,226
Audio and Video		81,861		83,754		+1,893
Still and Video Cameras		103,034		99,606		-3,428
Mobile Communications		114,886		77,714		-37,172
Other		59,519		58,758		-761
Total		551,005		486,311		-64,694
Imaging & Sensing Solutions		222,924		285,579		+62,655
Financial Services		351,493		375,089		+23,596
All Other		77,226		57,943		-19,283
Corporate		2,043		2,162		+119
Consolidated total	¥	2,182,760	¥	2,122,259	¥	-60,501

F -7

(Sales to Customers by Product Category)
	(Millions of yen)
	Six months ended September 30
Sales and operating revenue (to external customers)	2018		2019		Change
Game & Network Services
Digital Software and Add-on Content	¥	483,209	¥	442,853	¥	-40,356
Network Services		151,441		167,983		+16,542
Hardware and Others		351,084		268,960		-82,124
Total		985,734		879,796		-105,938
Music
Recorded Music		205,202		224,164		+18,962
Music Publishing		40,900		77,697		+36,797
Visual Media and Platform		131,900		114,919		-16,981
Total		378,002		416,780		+38,778
Pictures
Motion Pictures		177,902		221,241		+43,339
Television Productions		113,897		108,032		-5,865
Media Networks		123,449		116,873		-6,576
Total		415,248		446,146		+30,898
Electronics Products & Solutions
Televisions		378,255		314,240		-64,015
Audio and Video		166,790		162,497		-4,293
Still and Video Cameras		216,290		199,860		-16,430
Mobile Communications		245,240		178,264		-66,976
Other		109,224		112,106		+2,882
Total		1,115,799		966,967		-148,832
Imaging & Sensing Solutions		399,597		496,754		+97,157
Financial Services		684,733		709,909		+25,176
All Other		151,673		118,575		-33,098
Corporate		5,598		13,056		+7,458
Consolidated total	¥	4,136,384	¥	4,047,983	¥	-88,401

Sony has realigned its product category configuration in regard to the segmentation change.  For further details, refer to Accounting Policies and Other Information in the Notes to Consolidated Financial Statements.  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 G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on contents through network by Sony Interactive Entertainment; Network Services includes network services relating to game, video and music content; Hardware and Others includes home and portable game consoles, packaged software and peripheral devices.  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 the production and distribution of animation titles, including game applications based on the animation titles, and various service offerings for music and visual products.  In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of motion pictures and direct-to-video content; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television and digital networks worldwide.  In the EP&S segment, Televisions includes LCD and OLED televisions; Audio and Video includes Blu-ray disc players and recorders, home audio, headphones and memory-based portable audio devices; Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Mobile Communications includes smartphones and an internet-related service business; Other includes display products such as projectors and medical equipment.

Within the EP&S segment, the operating income (loss) of Mobile Communications for the three months ended September 30, 2018 and 2019 was (29,814) million yen and 635 million yen, respectively.  In addition, the operating income (loss) of the six months ended September 30, 2018 and 2019 was (40,572) million yen and 1,674 million yen, respectively.

F -8

(Condensed Financial Services 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)
	Financial Services				Sony without Financial Services				Consolidated
	March 31		September 30		March 31		September 30		March 31		September 30
	2019		2019		2019		2019		2019		2019
ASSETS
Current assets:
Cash and cash equivalents	¥	509,595	¥	536,556	¥	960,478	¥	716,313	¥	1,470,073	¥	1,252,869
Marketable securities		1,324,538		1,445,531	－		－			1,324,538		1,445,531
Notes and accounts receivable, trade and contract assets		16,479		15,565		1,055,669		1,143,171		1,065,802		1,151,955
Inventories	－		－			653,278		779,533		653,278		779,533
Other receivables		63,921		52,265		159,758		183,019		223,620		234,869
Prepaid expenses and other current assets		133,214		131,303		376,778		412,863		509,301		543,459
Total current assets		2,047,747		2,181,220		3,205,961		3,234,899		5,246,612		5,408,216
Film costs	－		－			409,005		434,782		409,005		434,782
Investments and advances		11,400,938		11,971,627		399,696		320,859		11,724,651		12,216,807
Investments in Financial Services, at cost	－		－			153,968		153,968	－		－
Property, plant and equipment		22,920		16,132		752,847		792,816		777,053		810,234
Other assets:
Right-of-use assets	－			55,984	－			290,503	－			345,910
Intangibles, net		42,968		44,770		874,998		844,792		917,966		889,562
Goodwill		7,225		7,225		761,327		742,147		768,552		749,372
Deferred insurance acquisition costs		595,265		605,118	－		－			595,265		605,118
Deferred income taxes		3,533		3,427		198,953		187,542		202,486		190,808
Other		32,085		33,810		311,653		285,732		339,996		315,487
		681,076		750,334		2,146,931		2,350,716		2,824,265		3,096,257
Total assets	¥	14,152,681	¥	14,919,313	¥	7,068,408	¥	7,288,040	¥	20,981,586	¥	21,966,296
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	564,609	¥	723,199	¥	226,470	¥	183,591	¥	791,079	¥	906,790
Short-term operating lease liabilities	－			8,699	－			57,969	－			66,477
Notes and accounts payable, trade	－		－			492,124		610,407		492,124		610,407
Accounts payable, other and accrued expenses		40,228		34,246		1,653,895		1,466,094		1,693,048		1,499,157
Accrued income and other taxes		19,655		27,015		115,571		170,371		135,226		197,386
Deposits from customers in the banking business		2,302,314		2,365,411	－		－			2,302,314		2,365,411
Other		197,123		213,852		474,926		462,688		666,024		669,810
Total current liabilities		3,123,929		3,372,422		2,962,986		2,951,120		6,079,815		6,315,438
Long-term debt		235,761		237,809		336,349		295,811		568,372		529,561
Long-term operating lease liabilities	－			41,252	－			227,125	－			268,007
Accrued pension and severance costs		33,979		34,488		350,253		337,950		384,232		372,438
Deferred income taxes		355,356		370,325		176,065		147,510		531,421		517,673
Future insurance policy benefits and other		5,642,671		5,912,918	－		－			5,642,671		5,912,918
Policyholders’ account in the life insurance business		3,048,202		3,161,271	－		－			3,048,202		3,161,271
Other		15,488		18,471		288,164		266,667		281,382		263,172
Total liabilities		12,455,386		13,148,956		4,113,817		4,226,183		16,536,095		17,340,478
Redeemable noncontrolling interest	－		－			8,801		7,528		8,801		7,528
Equity:
Stockholders’ equity of Financial Services		1,695,563		1,768,439	－		－		－		－
Stockholders’ equity of Sony without Financial Services	－		－			2,850,380		2,960,149	－		－
Sony Corporation’s stockholders’ equity	－		－		－		－			3,746,377		3,903,430
Noncontrolling interests		1,732		1,918		95,410		94,180		690,313		714,860
Total equity		1,697,295		1,770,357		2,945,790		3,054,329		4,436,690		4,618,290
Total liabilities and equity	¥	14,152,681	¥	14,919,313	¥	7,068,408	¥	7,288,040	¥	20,981,586	¥	21,966,296

F -9

Condensed Statements of Income

	(Millions of yen)
	Three months ended September 30
	Financial Services						Sony without Financial Services					Consolidated
	2018			2019			2018		2019			2018		2019
Financial services revenue	¥	353,453		¥	377,181		¥	－	¥	－		¥	351,493	¥	375,089
Net sales and operating revenue		－			－			1,833,252		1,749,121			1,831,267		1,747,170
		353,453			377,181			1,833,252		1,749,121			2,182,760		2,122,259
Cost of sales		－			－			1,225,837		1,160,099			1,222,744		1,156,980
Selling, general and administrative		－			－			396,019		353,760			397,129		354,916
Financial services expenses		314,296			338,273			－		－			312,334		336,178
Other operating (income) expense, net		14			8			13,369		(2,426	)		13,383		(2,404	)
		314,310			338,281			1,635,225		1,511,433			1,945,590		1,845,670
Equity in net income (loss) of affiliated companies		17			(121	)		2,324		2,487			2,341		2,366
Operating income		39,160			38,779			200,351		240,175			239,511		278,955
Other income (expenses), net		(19	)		(45	)		6,906		(16,815	)		6,887		(16,861	)
Income before income taxes		39,141			38,734			207,257		223,360			246,398		262,094
Income taxes		10,398			10,753			48,870		51,174			59,268		61,927
Net income		28,743			27,981			158,387		172,186			187,130		200,167
Less - Net income attributable to noncontrolling interests		67			87			4,042		2,448			14,129		12,280
Net income of Financial Services	¥	28,676		¥	27,894		¥	－	¥	－		¥	－	¥	－
Net income of Sony without Financial Services	¥	－		¥	－		¥	154,345	¥	169,738		¥	－	¥	－
Net income attributable to Sony Corporation's stockholders	¥	－		¥	－		¥	－	¥	－		¥	173,001	¥	187,887

	Six months ended September 30
	Financial Services						Sony without Financial Services						Consolidated
	2018			2019			2018			2019			2018			2019
Financial services revenue	¥	688,658		¥	714,116		¥	－		¥	－		¥	684,733		¥	709,909
Net sales and operating revenue		－			－			3,455,586			3,341,464			3,451,651			3,338,074
		688,658			714,116			3,455,586			3,341,464			4,136,384			4,047,983
Cost of sales		－			－			2,341,273			2,223,968			2,335,231			2,218,018
Selling, general and administrative		－			－			744,782			702,537			746,890			705,083
Financial services expenses		608,416			628,879			－			－			604,490			624,671
Other operating (income) expense, net		39			44			13,019			(6,019	)		13,058			(5,961	)
		608,455			628,923			3,099,074			2,920,486			3,699,669			3,541,811
Equity in net income (loss) of affiliated companies		(462	)		(309	)		(1,736	)		4,017			(2,198	)		3,708
Operating income		79,741			84,884			354,776			424,995			434,517			509,880
Other income (expenses), net		(36	)		(91	)		140,446			1,015			123,967			(16,768	)
Income before income taxes		79,705			84,793			495,222			426,010			558,484			493,112
Income taxes		21,930			24,735			112,560			102,204			134,490			126,939
Net income		57,775			60,058			382,662			323,806			423,994			366,173
Less - Net income attributable to noncontrolling interests		113			173			3,689			5,072			24,546			26,164
Net income of Financial Services	¥	57,662		¥	59,885		¥	－		¥	－		¥	－		¥	－
Net income of Sony without Financial Services	¥	－		¥	－		¥	378,973		¥	318,734		¥	－		¥	－
Net income attributable to Sony Corporation's stockholders	¥	－		¥	－		¥	－		¥	－		¥	399,448		¥	340,009

F -10

Condensed Statements of Cash Flows
							(Millions of yen)
	Six months ended September 30
	Financial Services						Sony without Financial Services						Consolidated
	2018			2019			2018			2019			2018			2019
Cash flows from operating activities:
Net income  (loss)	¥	57,775		¥	60,058		¥	382,662		¥	323,806		¥	423,994		¥	366,173
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization, including amortization of
deferred insurance acquisition costs and contract costs		33,438			45,235			138,388			144,704			171,826			189,939
Amortization of film costs	－			－				133,892			138,400			133,892			138,400
Other operating (income) expense, net		39			44			13,019			(6,019	)		13,058			(5,961	)
(Gain) loss on marketable securities and
securities investments, net		(109,791	)		(25,820	)		(124,717	)		12,939			(234,508	)		(12,881	)
Changes in assets and liabilities:
(Increase) decrease in notes, accounts receivable, trade
and contract assets		388			914			(185,352	)		(145,747	)		(185,855	)		(144,399	)
(Increase) decrease in inventories	－			－				(118,255	)		(144,148	)		(118,255	)		(144,148	)
(Increase) decrease in film costs	－			－				(190,494	)		(176,002	)		(190,494	)		(176,002	)
Increase (decrease) in notes and accounts
payable, trade	－			－				302,979			128,786			302,979			128,786
Increase (decrease) in future insurance policy
benefits and other		368,871			338,457		－			－				368,871			338,457
(Increase) decrease in deferred insurance
acquisition costs		(47,090	)		(48,346	)	－			－				(47,090	)		(48,346	)
(Increase) decrease in marketable securities held
in the life insurance business		(43,949	)		(88,119	)	－			－				(43,949	)		(88,119	)
Other		(8,949	)		55,679			(175,651	)		(187,001	)		(183,640	)		(131,414	)
Net cash provided by (used in) operating activities		250,732			338,102			176,471			89,718			410,829			410,485
Cash flows from investing activities:
Payments for purchases of fixed assets		(9,600	)		(9,379	)		(145,228	)		(170,398	)		(154,819	)		(179,778	)
Payments for investments and advances		(563,301	)		(681,965	)		(25,373	)		(32,320	)		(588,674	)		(714,285	)
Proceeds from sales or return of investments and
collections of advances		140,969			138,242			84,463			91,984			225,432			230,226
Other		78			64			(10,019	)		32,571			(9,940	)		32,622
Net cash provided by (used in) investing activities		(431,854	)		(553,038	)		(96,157	)		(78,163	)		(528,001	)		(631,215	)
Cash flows from financing activities:
Increase (decrease) in borrowings, net		146,992			158,510			(192,289	)		(80,880	)		(45,298	)		77,309
Increase (decrease) in deposits from customers, net		132,628			110,514		－			－				132,628			110,514
Dividends paid		(26,100	)		(27,189	)		(18,992	)		(24,994	)		(18,992	)		(24,994	)
Other		114			62			(58,987	)		(124,463	)		(68,608	)		(133,920	)
Net cash provided by (used in) financing activities		253,634			241,897			(270,268	)		(230,337	)		(270	)		28,909
Effect of exchange rate changes on cash and cash equivalents	－			－				70,344			(26,029	)		70,344			(26,029	)
Net increase (decrease) in cash and cash equivalents,
including restricted		72,512			26,961			(119,610	)		(244,811	)		(47,098	)		(217,850	)
Cash and cash equivalents, including restricted, at beginning of the fiscal year		393,133			509,595			1,199,805			964,218			1,592,938			1,473,813
Cash and cash equivalents, including restricted, at end of the period		465,645			536,556			1,080,195			719,407			1,545,840			1,255,963
Less - restricted cash and cash equivalents,
included in other current assets and other assets	－			－				5,061			3,094			5,061			3,094
Cash and cash equivalents at end of the period	¥	465,645		¥	536,556		¥	1,075,134		¥	716,313		¥	1,540,779		¥	1,252,869

F -11

Going Concern Assumption

Not Applicable

Significant Changes in Shareholders' Equity

Based on the resolution of the Board of Directors at the meeting held on May 16, 2019, Sony Corporation repurchased 21,409,600 shares of its common stock for 124,999 million yen during the six months ended September 30, 2019.  The balance of treasury stock was 229,782 million yen, at cost, as of September 30, 2019 primarily due to the above-mentioned repurchase of common stock.

Accounting Policies and Other Information

(Recently adopted accounting pronouncements)

Leases

      In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, which amends current leasing guidance.  The ASU requires substantially all leases to be recognized on the balance sheet.

Sony has applied this ASU as of April 1, 2019, on a modified retrospective basis with no restatement of comparative periods. Sony has applied the package of practical expedients for leases that expired or existed prior to the adoption date.  As a result, Sony did not reassess whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases, or whether initial direct costs for any existing leases qualify for capitalization.  In addition, Sony has applied the short-term lease exception.

As a result of the adoption of this ASU, Sony recognized 316,923 million yen of operating lease right-of-use assets and 341,251 million yen of lease liabilities for operating leases on the consolidated balance sheets at April 1, 2019.  This impact is mainly due to operating leases of real estate.  The difference of 24,328 million yen between right-of-use assets and lease liabilities represents deferred rent for leases that existed as of the date of adoption, which was offset against the opening balance of operating lease right-of-use assets.  Finance lease right-of-use assets which are included in property, plant and equipment in the consolidated balance sheets for the fiscal year ended March 31, 2019, are now presented as finance lease right-of-use assets from April 1, 2019 onward.

Targeted improvements to accounting for hedging activities

In August 2017, the FASB issued ASU 2017-12, which made targeted improvements to the accounting for hedging activities.   The amendments in this update simplify certain aspects of hedge accounting for both non-financial and financial risks and better align the recognition and measurement of hedge results with an entity’s risk management activities.  This ASU also amends certain presentation and disclosure requirements for hedging activities and changes how an entity assesses hedge effectiveness.  This ASU was effective for Sony as of April 1, 2019.  The adoption of this ASU did not have a material impact on Sony’s results of operations and financial position.

(Number of Consolidated Subsidiaries and Affiliated Companies)

As of September 30, 2019, Sony had 1,546 consolidated subsidiaries (including variable interest entities) and 132 affiliated companies accounted for under the equity method.

(Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)

	(Thousands of shares)
	Three months ended September 30
Net income attributable to Sony Corporation’s stockholders	2018	2019
— Basic	1,268,535	1,237,011
— Diluted	1,296,562	1,264,427

F -12

	(Thousands of shares)
	Six months ended September 30
Net income attributable to Sony Corporation’s stockholders	2018	2019
— Basic	1,268,017	1,243,086
— Diluted	1,296,190	1,270,343

The dilutive effect in the weighted-average number of outstanding shares for the three and six months ended September 30, 2018 and 2019 primarily resulted from convertible bonds which were issued in July 2015.

     (Segmentation)

Sony realigned its business segments from the first quarter of the fiscal year ending March 31, 2020 to reflect modifications to the organizational structure of certain segments and a change in the Senior Executives in charge of certain segments as of April 1, 2019.  In connection with this decision, the former Home Entertainment & Sound, Imaging Products & Solutions and Mobile Communications segments have been realigned as the Electronics Products & Solutions (“EP&S”) segment.  In connection with this realignment, the sales and operating revenue and operating income (loss) of each segment for the fiscal year ended March 31, 2019 have been reclassified to conform to the presentation for the fiscal year ending March 31, 2020.  In addition, the former Semiconductors segment has been renamed the Imaging & Sensing Solutions (“I&SS”) segment effective from the first quarter of the fiscal year ending March 31, 2020.

The G&NS segment includes network services businesses, the manufacture and sales of home gaming products and production and sales of software.  The Music segment includes the Recorded Music, Music Publishing and Visual Media and Platform businesses.  The Pictures segment includes the Motion Pictures, Television Productions and Media Networks businesses.  The EP&S segment includes the Televisions business, the Audio and Video business, the Still and Video Cameras business, the　smartphone business and Internet-related service business.  The I&SS segment includes the image sensors business.  The Financial Services segment primarily represents individual life insurance and non-life insurance businesses in the Japanese market and a bank business in Japan.  All Other consists of various operating activities, including the disc manufacturing and recording media businesses.  Sony’s products and services are generally unique to a single operating segment.

(Accounting Methods Used Specifically for Interim Consolidated Financial Statements)

Income Taxes -

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 infrequent transactions.  Such income tax provision is separately reported from the provision based on the ETR in the interim period in which it occurs.

(Reclassifications)

Certain reclassifications of the financial statements and accompanying footnotes for the three and six months ended September 30, 2018 have been made to conform to the presentation for the three and six months ended September 30, 2019.

(Subsequent event)

On October 10, 2019, Sony Corporation issued under its existing domestic bond shelf registration 100.0 billion yen of unsecured straight bonds.  The bonds have interest rates and maturity dates as follows:

Amount	Interest rate	Maturity date
30.0 billion yen	0.13% per annum	October 10, 2024
10.0 billion yen	0.18% per annum	October 9, 2026
60.0 billion yen	0.30% per annum	October 10, 2029

F -13

Outlook for the Fiscal Year Ending March 31, 2020

The forecast for consolidated results for the fiscal year ending March 31, 2020, as announced on July 30, 2019, has been revised as follows:

	(Billions of yen)
		March 31, 2019		July		October		Change from
		Results		Forecast		Forecast		July Forecast
Sales and operating revenue		¥8,665.7		¥ 8,600		¥8,400		-¥200 billion	-2.3	%
Operating income			894.2		810		840	+ ¥30 billion	+3.7	%
Income before income taxes			1,011.6		770		800	+ ¥30 billion	+3.9	%
Net income attributable to Sony Corporation’s stockholders			916.3		500		540	+ ¥40 billion	+8.0	%

Assumed foreign exchange rates are the following:

	Assumed foreign exchange rates for the six months ending March 31, 2020	(For your reference)
		Assumed foreign exchange rates for the fiscal year ending March 31, 2020 at the time of the July forecast
1 U.S. dollar	approximately 108 yen	approximately 108 yen
1 Euro	approximately 118 yen	approximately 123 yen

Consolidated sales and operating revenue (“sales”) for the fiscal year ending March 31, 2020 are expected to be lower than the July forecast due to lower-than-expected sales in the Game & Network Services (“G&NS”), Electronics Products & Solutions (“EP&S”) and Pictures segments, partially offset by higher-than-expected sales in the Imaging & Sensing Solutions (“I&SS”) and Music segments.

Consolidated operating income is expected to be higher than the July forecast due to an expected increase in operating income primarily in the I&SS segment and an expected decrease in operating loss in All Other, Corporate and elimination, partially offset by expected decreases in operating income in the G&NS and EP&S segments.

Restructuring charges for the Sony Group are expected to be approximately 24.0 billion yen, which remains unchanged from the July forecast, compared to 33.1 billion yen in the fiscal year ended March 31, 2019.  Restructuring charges are recorded as an operating expense and are included in the forecast for operating income.

Income before income taxes is expected to be 800 billion yen, which is higher than the July forecast.  This expected increase is primarily due to the above-mentioned expected increase in operating income.

Net income attributable to Sony Corporation’s stockholders is expected to be higher than the July forecast due to the above-mentioned expected increase in income before income taxes, as well as lower-than-expected effective tax rates.

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The forecast for each business segment for the fiscal year ending March 31, 2020 has been revised as follows:

		(Billions of yen)
		March 31, 2019 Results	July Forecast	October Forecast
Game & Network Services (G&NS)
	Sales and operating revenue	¥2,310.9	¥2,200	¥2,000
	Operating income	311.1	280	240
Music
	Sales and operating revenue	807.5	830	850
	Operating income	232.5	135	140
Pictures
	Sales and operating revenue	986.9	1,080	1,030
	Operating income	54.6	65	70
Electronics Products & Solutions (EP&S) *
	Sales and operating revenue	2,320.6	2,160	2,110
	Operating income	76.5	121	111
Imaging & Sensing Solutions (I&SS) **
	Sales and operating revenue	879.3	990	1,040
	Operating income	143.9	145	200
Financial Services
	Financial services revenue	1,282.5	1,330	1,330
	Operating income	161.5	170	170
All Other, Corporate and elimination
	Operating loss	(85.8)	(106)	(91)
Consolidated
	Sales and operating revenue	8,665.7	8,600	8,400
	Operating income	894.2	810	840

* Sony realigned its business segments from the first quarter of the fiscal year ending March 31, 2020 to reflect modifications to the organizational structure of certain segments and a change in the Senior Executives in charge of certain segments as of April 1, 2019.  In connection with this decision, the former Home Entertainment & Sound, Imaging Products & Solutions and Mobile Communications segments have been realigned as the Electronics Products & Solutions (EP&S) segment.  The sales and operating income (loss) of each segment for the fiscal year ended March 31, 2019 have been reclassified to conform to the presentation for the fiscal year ending March 31, 2020.

** The former Semiconductors segment has been renamed the Imaging & Sensing Solutions (I&SS) segment effective from the first quarter of the fiscal year ending March 31, 2020.

Game & Network Services (G&NS)

Sales are expected to be lower than the July forecast primarily due to lower-than-expected software sales including the impact of a change in the launch date of a first-party title, lower-than-expected PlayStation®4 hardware unit sales and the impact of foreign exchange rates.  Operating income is expected to be significantly lower than the July forecast primarily due to the impact of the above-mentioned expected decrease in software sales and the negative impact of foreign exchange rates, partially offset by expected cost reductions and an increase in sales for PlayStation®Plus.

Music

Sales are expected to be higher than the July forecast primarily due to an expected increase in streaming revenues in Recorded Music and Music Publishing.  Operating income is expected to be higher than the July forecast primarily due to the impact of the above-mentioned expected increase in sales.

Pictures

Sales are expected to be lower than the July forecast primarily due to a delay in the timing of theatrical releases in Motion Pictures, as well as lower advertising and subscription revenues in Media Networks primarily due to the impact of the channel portfolio review that began in the previous fiscal year.  Operating income is expected to be higher than the July forecast primarily due to an expected decrease in marketing costs resulting from the above-mentioned release date changes in Motion Pictures and higher operating results in India as well as the benefit of the above-mentioned portfolio review in Media Networks.

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Electronics Products & Solutions (EP&S)

Sales are expected to be lower than the July forecast primarily due to lower-than-expected unit sales of televisions and the impact of foreign exchange rates.  Operating income is expected to be lower than the July forecast primarily due to the negative impact of foreign exchange rates and the impact of the above-mentioned expected decrease in sales, partially offset by expected further reductions in operating costs.

Imaging & Sensing Solutions (I&SS)

Sales are expected to be higher than the July forecast due to higher-than-expected sales of image sensors for mobile products, resulting from an improvement in product mix and higher-than-expected unit sales.  Operating income is expected to be significantly higher than the July forecast primarily due to the impact of the above-mentioned expected increase in sales.

The forecasts for financial services revenue and operating income for the Financial Services segment remain unchanged from the July forecast.

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.

The above 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.

Notes about Financial Performance of the Music, Pictures and Financial Services segments

On November 14, 2018, Sony acquired the entirety of the approximately 60% equity interest held by the investor consortium led by Mubadala Investment Company in DH Publishing, L.P. (“EMI”), which owned and managed EMI Music Publishing, resulting in EMI becoming a wholly-owned subsidiary of Sony.  Financial results of EMI included in the Music segment for the fiscal year ended March 31, 2019 include equity earnings (loss) from April 1 through November 13, 2018 and sales and operating income (loss) from November 14, 2018 through March 31, 2019.  Sales and operating income (loss) for the Music segment in the fiscal year ending March 31, 2020 include the financial results of EMI from April 1, 2019 onward.

The Music segment results include the yen-translated results of Sony Music Entertainment, Sony/ATV Music Publishing and EMI, all U.S.-based operations which aggregate the results of their worldwide subsidiaries on a U.S. dollar basis, and the results of Sony Music Entertainment (Japan) Inc., a Japan-based music company which aggregates its results in yen.

The results presented in Pictures are a yen-translation of the results of Sony Pictures Entertainment Inc., a U.S.-based operation that aggregates the results of its worldwide subsidiaries on a U.S. dollar basis.

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

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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)	Sony’s ability to maintain product quality and customer satisfaction with its products and services;
(ii)	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 image sensors, game and network platforms, smartphones and televisions, 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 customer preferences;
(iii)	Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;
(iv)	the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;
(v)	changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility;
(vi)	Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;
(vii)	Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations;
(viii)	the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;
(ix)	Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;
(x)	Sony’s ability to forecast demands, manage timely procurement and control inventories;
(xi)	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, liabilities and operating results are denominated;
(xii)	Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel;
(xiii)	Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others;
(xiv)	the impact of changes in interest rates and 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)	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;
(xvi)	risks related to catastrophic disasters or similar events;
(xvii)	the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii)	the outcome of pending and/or future legal and/or regulatory proceedings.

Risks and uncertainties also include the impact of any future events with material adverse impact. Important information regarding risks and uncertainties is also set forth in Sony’s most recent Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

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