Edgar Filing: SONY CORP

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 2018

Commission File Number: 001-06439

SONY CORPORATION

(Translation of registrant's name into English)

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

(Address of principal executive offices)

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

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

Form 20-F X

Form 40-F __

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

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

SIGNATURE

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

	SONY CORPORATION
	(Registrant)


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

Date: February 2, 2018

List of materials

Documents attached hereto:

i) Press release Announcement _______________________________________________________

Quarterly Financial Statements

for the Third Quarter Ended December 31, 2017

And

Outlook for the Fiscal Year Ending March 31, 2018

February 2, 2018

Sony Corporation

Quarterly Financial Statements (Unaudited)	F-1

Consolidated Balance Sheets	F-1
Consolidated Statements of Income (Three months ended December 31)	F-2
Consolidated Statements of Comprehensive Income (Three months ended December 31)	F-2
Consolidated Statements of Income (Nine months ended December 31)	F-3
Consolidated Statements of Comprehensive Income (Nine months ended December 31)	F-3
Consolidated Statements of Cash Flows (Nine months ended December 31)	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, 2018	1

Outlook for the Fiscal Year Ending March 31, 2018	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			December 31			Change from
ASSETS	2017			2017			March 31, 2017
Current assets:
Cash and cash equivalents	¥	960,142		¥	1,328,925		¥	+368,783
Marketable securities		1,051,441			1,221,687			+170,246
Notes and accounts receivable, trade		1,006,961			1,535,912			+528,951
Allowance for doubtful accounts and sales returns		(53,150	)		(62,135	)		-8,985
Inventories		640,835			753,658			+112,823
Other receivables		223,632			234,002			+10,370
Prepaid expenses and other current assets		525,861			548,742			+22,881
Total current assets		4,355,722			5,560,791			+1,205,069

Film costs		336,928			365,783			+28,855

Investments and advances:
Affiliated companies		149,371			155,303			+5,932
Securities investments and other		9,962,422			10,401,319			+438,897
		10,111,793			10,556,622			+444,829

Property, plant and equipment:
Land		117,293			114,967			-2,326
Buildings		666,381			685,576			+19,195
Machinery and equipment		1,842,852			1,855,459			+12,607
Construction in progress		28,779			45,041			+16,262
		2,655,305			2,701,043			+45,738
Less-Accumulated depreciation		1,897,106			1,909,436			+12,330
		758,199			791,607			+33,408

Other assets:
Intangibles, net		584,185			571,027			-13,158
Goodwill		522,538			552,336			+29,798
Deferred insurance acquisition costs		568,837			595,180			+26,343
Deferred income taxes		98,958			91,452			-7,506
Other		323,396			335,878			+12,482
		2,097,914			2,145,873			+47,959

Total assets	¥	17,660,556		¥	19,420,676		¥	+1,760,120


LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	464,655		¥	537,443		¥	+72,788
Current portion of long-term debt		53,424			245,646			+192,222
Notes and accounts payable, trade		539,900			658,250			+118,350
Accounts payable, other and accrued expenses		1,394,758			1,621,542			+226,784
Accrued income and other taxes		106,037			213,874			+107,837
Deposits from customers in the banking business		2,071,091			2,159,747			+88,656
Other		591,874			585,348			-6,526
Total current liabilities		5,221,739			6,021,850			+800,111

Long-term debt		681,462			594,195			-87,267
Accrued pension and severance costs		396,715			403,663			+6,948
Deferred income taxes		432,824			428,147			-4,677
Future insurance policy benefits and other		4,834,492			5,104,322			+269,830
Policyholders' account in the life insurance business		2,631,073			2,854,660			+223,587
Other		314,771			284,283			-30,488
Total liabilities		14,513,076			15,691,120			+1,178,044

Redeemable noncontrolling interest		12,058			14,609			+2,551

Equity:
Sony Corporation's stockholders' equity:
Common stock		860,645			864,078			+3,433
Additional paid-in capital		1,275,337			1,279,422			+4,085
Retained earnings		984,368			1,476,194			+491,826
Accumulated other comprehensive income		(618,769	)		(575,320	)		+43,449
Treasury stock, at cost		(4,335	)		(4,481	)		-146
		2,497,246			3,039,893			+542,647

Noncontrolling interests		638,176			675,054			+36,878
Total equity		3,135,422			3,714,947			+579,525
Total liabilities and equity	¥	17,660,556		¥	19,420,676		¥	+1,760,120

F - 1

Consolidated Statements of Income

	(Millions of yen, except per share amounts)
	Three months ended December 31
	2016		2017			Change
Sales and operating revenue:
Net sales	¥	2,059,578	¥	2,279,714		¥	+220,136
Financial services revenue		317,342		371,498			+54,156
Other operating revenue		20,579		21,105			+526
		2,397,499		2,672,317			+274,818

Costs and expenses:
Cost of sales		1,495,036		1,607,962			+112,926
Selling, general and administrative		411,652		415,532			+3,880
Financial services expenses		286,740		315,404			+28,664
Other operating (income) expense, net		113,013		(13,119	)		-126,132
		2,306,441		2,325,779			+19,338

Equity in net income of affiliated companies		1,314		4,299			+2,985

Operating income		92,372		350,837			+258,465

Other income:
Interest and dividends		2,502		3,519			+1,017
Gain on sale of securities investments, net		92		833			+741
Other		189		1,531			+1,342
		2,783		5,883			+3,100

Other expenses:
Interest		3,749		3,536			-213
Loss on devaluation of securities investments		4,810		1,324			-3,486
Foreign exchange loss, net		18,420		5,888			-12,532
Other		1,949		2,853			+904
		28,928		13,601			-15,327

Income before income taxes		66,227		343,119			+276,892

Income taxes		36,956		28,234			-8,722

Net income		29,271		314,885			+285,614

Less - Net income attributable to noncontrolling interests		9,640		18,988			+9,348

Net income attributable to Sony Corporation's
stockholders	¥	19,631	¥	295,897		¥	+276,266



Per share data:
Net income attributable to Sony Corporation's
stockholders
— Basic	¥	15.55	¥	234.08		¥	+218.53
— Diluted		15.24		228.91			+213.67

Consolidated Statements of Comprehensive Income
				(Millions of yen)
	Three months ended December 31
	2016			2017			Change

Net income	¥	29,271		¥	314,885		¥	+285,614

Other comprehensive income, net of tax –
Unrealized gains (losses) on securities		(8,314	)		11,688			+20,002
Unrealized gains (losses) on derivative instruments		3,430			(79	)		-3,509
Pension liability adjustment		3,250			2,365			-885
Foreign currency translation adjustments		112,440			3,655			-108,785

Total comprehensive income		140,077			332,514			+192,437

Less - Comprehensive income attributable
to noncontrolling interests		2,152			21,603			+19,451

Comprehensive income attributable
to Sony Corporation's stockholders	¥	137,925		¥	310,911		¥	+172,986

F - 2

Consolidated Statements of Income
	(Millions of yen, except per share amounts)
	Nine months ended December 31
	2016				2017			Change
Sales and operating revenue:
Net sales		¥	4,834,013		¥	5,573,273		¥	+739,260
Financial services revenue			806,954			950,292			+143,338
Other operating revenue			58,679			69,396			+10,717
			5,699,646			6,592,961			+893,315

Costs and expenses:
Cost of sales			3,559,927			3,957,700			+397,773
Selling, general and administrative			1,088,096			1,159,190			+71,094
Financial services expenses			693,537			810,967			+117,430
Other operating (income) expense, net			165,454			(40,131	)		-205,585
			5,507,014			5,887,726			+380,712

Equity in net income of affiliated companies			1,679			7,441			+5,762

Operating income			194,311			712,676			+518,365

Other income:
Interest and dividends			7,859			16,556			+8,697
Gain on sale of securities investments, net			155			1,479			+1,324
Other			1,906			2,529			+623
			9,920			20,564			+10,644

Other expenses:
Interest			11,902			10,782			-1,120
Loss on devaluation of securities investments			4,860			1,803			-3,057
Foreign exchange loss, net			19,230			25,154			+5,924
Other			4,476			4,923			+447
			40,468			42,662			+2,194

Income before income taxes			163,763			690,578			+526,815

Income taxes			80,931			138,481			+57,550

Net income			82,832			552,097			+469,265

Less - Net income attributable to noncontrolling interests			37,193			44,477			+7,284

Net income attributable to Sony Corporation’s
stockholders			45,639			507,620			+461,981



Per share data:
Net income attributable to Sony Corporation’s
stockholders
— Basic		¥	36.17		¥	401.76		¥	+365.59
— Diluted			35.43			393.05			+357.62


Consolidated Statements of Comprehensive Income
	(Millions of yen)
	Nine months ended December 31
						Change

Net income		¥	82,832		¥	552,097		¥	+469,265

Other comprehensive income, net of tax –
Unrealized gains (losses) on securities			(25,645	)		7,030			+32,675
Unrealized gains on derivative instruments			3,690			150			-3,540
Pension liability adjustment			9,297			7,009			-2,288
Foreign currency translation adjustments			5,377			33,742			+28,365

Total comprehensive income			75,551			600,028			+524,477

Less - Comprehensive income attributable to noncontrolling interests			21,307			48,959			+27,652

Comprehensive income attributable
to Sony Corporation’s stockholders		¥	54,244		¥	551,069		¥	+496,825

F - 3

Consolidated Statements of Cash Flows
	(Millions of yen)
	Nine months ended December 31
	2016			2017
Cash flows from operating activities:
Net income	¥	82,832		¥	552,097
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization, including amortization of deferred
insurance acquisition costs		259,554			258,187
Amortization of film costs		190,539			259,709
Accrual for pension and severance costs, less payments		7,270			3,948
Other operating (income) expense, net		165,454			(40,131	)
Loss on sale or devaluation of securities investments, net		4,706			324
Gain on revaluation of marketable securities held in the financial
services business for trading purposes, net		(42,727	)		(109,888	)
Loss on revaluation or impairment of securities investments held
in the financial services business, net		29			213
Deferred income taxes		4,450			(4,551	)
Equity in net (income) loss of affiliated companies, net of dividends		5,770			(2,125	)
Changes in assets and liabilities:
Increase in notes and accounts receivable, trade		(372,978	)		(488,285	)
Increase in inventories		(18,622	)		(88,954	)
Increase in film costs		(242,875	)		(279,082	)
Increase in notes and accounts payable, trade		87,698			90,484
Increase in accrued income and other taxes		65,951			70,983
Increase in future insurance policy benefits and other		336,157			424,084
Increase in deferred insurance acquisition costs		(70,070	)		(65,248	)
Increase in marketable securities held in the financial services
business for trading purposes		(60,868	)		(64,727	)
Increase in other current assets		(46,705	)		(25,633	)
Increase in other current liabilities		55,453			189,524
Other		(97,766	)		(20,600	)
Net cash provided by operating activities		313,252			660,329

Cash flows from investing activities:
Payments for purchases of fixed assets		(260,457	)		(189,780	)
Proceeds from sales of fixed assets		9,134			15,095
Payments for investments and advances by financial services business		(943,712	)		(671,982	)
Payments for investments and advances
(other than financial services business)		(7,487	)		(16,526	)
Proceeds from sales or return of investments and collections of advances
by financial services business		212,624			256,652
Proceeds from sales or return of investments and collections of advances
(other than financial services business)		13,837			5,404
Proceeds from sales of businesses		3,262			44,624
Other		(8,715	)		(10,400	)
Net cash used in investing activities		(981,514	)		(566,913	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		255,416			92,833
Payments of long-term debt		(182,670	)		(20,570	)
Increase in short-term borrowings, net		275,084			72,913
Increase in deposits from customers in the financial services business, net		254,279			154,374
Dividends paid		(25,308	)		(27,750	)
Payment for purchase of Sony/ATV shares from noncontrolling interests		(76,565	)	－
Other		(32,385	)		(6,612	)
Net cash provided by financing activities		467,851			265,188

Effect of exchange rate changes on cash and cash equivalents		(11,525	)		10,179

Net increase (decrease) in cash and cash equivalents		(211,936	)		368,783
Cash and cash equivalents at beginning of the fiscal year		983,612			960,142

Cash and cash equivalents at end of the period	¥	771,676		¥	1,328,925

F - 4

Notes to Consolidated Financial Statements
Business Segment Information
(Business Segments)
	(Millions of yen)
	Three months ended December 31
Sales and operating revenue	2016				2017			Change
Game & Network Services
Customers		¥	596,997		¥	681,649		¥	+84,652
Intersegment			20,702			36,317			+15,615
Total			617,699			717,966			+100,267

Music
Customers			173,218			214,267			+41,049
Intersegment			5,289			4,162			-1,127
Total			178,507			218,429			+39,922

Pictures
Customers			224,771			260,050			+35,279
Intersegment			385			267			-118
Total			225,156			260,317			+35,161

Home Entertainment & Sound
Customers			351,983			429,604			+77,621
Intersegment			1,442			243			-1,199
Total			353,425			429,847			+76,422

Imaging Products & Solutions
Customers			165,260			179,112			+13,852
Intersegment			1,859			1,990			+131
Total			167,119			181,102			+13,983

Mobile Communications
Customers			247,173			215,141			-32,032
Intersegment			1,424			2,402			+978
Total			248,597			217,543			-31,054

Semiconductors
Customers			205,021			218,303			+13,282
Intersegment			28,847			32,627			+3,780
Total			233,868			250,930			+17,062

Financial Services
Customers			317,342			371,498			+54,156
Intersegment			1,800			1,773			-27
Total			319,142			373,271			+54,129

All Other
Customers			109,933			96,611			-13,322
Intersegment			21,713			11,971			-9,742
Total			131,646			108,582			-23,064

Corporate and elimination			(77,660	)		(85,670	)		-8,010
Consolidated total		¥	2,397,499		¥	2,672,317		¥	+274,818

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with All Other. Semiconductors intersegment amounts primarily consist of transactions with the Mobile Communications (“MC”) segment, the G&NS segment and the Imaging Products & Solutions (“IP&S”) segment. All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment. Corporate and elimination includes certain brand and patent royalty income.

	(Millions of yen)
			Three months ended December 31
Operating income (loss)			2016			2017		Change
Game & Network Services		¥	50,028		¥	85,364		¥	+35,336
Music			27,982			39,342			+11,360
Pictures			(106,774	)		10,489			+117,263
Home Entertainment & Sound			25,934			46,213			+20,279
Imaging Products & Solutions			21,101			25,982			+4,881
Mobile Communications			21,218			15,801			-5,417
Semiconductors			27,166			60,558			+33,392
Financial Services			28,996			56,287			+27,291
All Other			(2,049	)		2,255			+4,304
Total			93,602			342,291			+248,689

Corporate and elimination			(1,230	)		8,546			+9,776
Consolidated total		¥	92,372		¥	350,837		¥	+258,465

The 2016 segment disclosure above has been reclassified to reflect the change in the business segment classification. Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies. Corporate and elimination includes headquarters restructuring costs and certain other corporate expenses, including the amortization of certain intellectual property assets such as the cross-licensing of intangible assets acquired from Ericsson at the time of the Sony Mobile Communications acquisition, which are not allocated to segments.

F - 5

(Business Segments)
	(Millions of yen)
	Nine months ended December 31
Sales and operating revenue	2016			2017			Change
Game & Network Services
Customers	¥	1,212,613		¥	1,418,955		¥	+206,342
Intersegment		55,345			80,277			+24,932
Total		1,267,958			1,499,232			+231,274

Music
Customers		458,256			582,180			+123,924
Intersegment		12,366			11,387			-979
Total		470,622			593,567			+122,945

Pictures
Customers		599,920			709,458			+109,538
Intersegment		665			673			+8
Total		600,585			710,131			+109,546

Home Entertainment & Sound
Customers		820,799			986,839			+166,040
Intersegment		3,422			808			-2,614
Total		824,221			987,647			+163,426

Imaging Products & Solutions
Customers		419,662			488,399			+68,737
Intersegment		5,055			5,058			+3
Total		424,717			493,457			+68,740

Mobile Communications
Customers		598,855			564,025			-34,830
Intersegment		4,435			6,746			+2,311
Total		603,290			570,771			-32,519

Semiconductors
Customers		484,332			584,389			+100,057
Intersegment		87,714			99,165			+11,451
Total		572,046			683,554			+111,508

Financial Services
Customers		806,954			950,292			+143,338
Intersegment		5,417			5,363			-54
Total		812,371			955,655			+143,284

All Other
Customers		276,660			286,307			+9,647
Intersegment		57,113			44,335			-12,778
Total		333,773			330,642			-3,131

Corporate and elimination		(209,937	)		(231,695	)		-21,758
Consolidated total	¥	5,699,646		¥	6,592,961		¥	+893,315

G&NS intersegment amounts primarily consist of transactions with All Other. Semiconductors intersegment amounts primarily consist of transactions with the MC segment, the G&NS segment and the IP&S segment. All Other intersegment amounts primarily consist of transactions with the Pictures segment, the Music segment and the G&NS segment. Corporate and elimination includes certain brand and patent royalty income.

	(Millions of yen)
	Nine months ended December 31
Operating income (loss)		2016			2017		Change
Game & Network Services	¥	113,051		¥	157,847		¥	+44,796
Music		60,373			96,878			+36,505
Pictures		(114,207	)		8,688			+122,895
Home Entertainment & Sound		63,731			93,183			+29,452
Imaging Products & Solutions		43,467			68,056			+24,589
Mobile Communications		25,331			16,964			-8,367
Semiconductors		(20,567	)		165,370			+185,937
Financial Services		111,106			139,109			+28,003
All Other		(41,604	)		(6,004	)		+35,600
Total		240,681			740,091			+499,410

Corporate and elimination		(46,370	)		(27,415	)		+18,955
Consolidated total	¥	194,311		¥	712,676		¥	+518,365

The 2016 segment disclosure above has been reclassified to reflect the change in the business segment classification. Operating income (loss) is sales and operating revenue less costs and expenses, and includes equity in net income (loss) of affiliated companies. Corporate and elimination includes headquarters restructuring costs and certain other corporate expenses, including the amortization of certain intellectual property assets such as the cross-licensing of intangible assets acquired from Ericsson at the time of the Sony Mobile Communications acquisition, which are not allocated to segments.

F - 6

(Sales to Customers by Product Category)
	(Millions of yen)
	Three months ended December 31
	2016		2017		Change

Game & Network Services
Hardware	¥	279,858	¥	270,653	¥	-9,205
Network		212,701		300,407		+87,706
Other		104,438		110,589		+6,151
Total		596,997		681,649		+84,652

Music
Recorded Music		114,833		128,239		+13,406
Music Publishing		15,549		18,334		+2,785
Visual Media and Platform		42,836		67,694		+24,858
Total		173,218		214,267		+41,049

Pictures
Motion Pictures		96,427		106,931		+10,504
Television Productions		73,044		82,227		+9,183
Media Networks		55,300		70,892		+15,592
Total		224,771		260,050		+35,279

Home Entertainment & Sound
Televisions		244,421		301,476		+57,055
Audio and Video		106,916		127,303		+20,387
Other		646		825		+179
Total		351,983		429,604		+77,621

Imaging Products & Solutions
Still and Video Cameras		110,962		121,156		+10,194
Other		54,298		57,956		+3,658
Total		165,260		179,112		+13,852

Mobile Communications		247,173		215,141		-32,032

Semiconductors		205,021		218,303		+13,282

Financial Services		317,342		371,498		+54,156

All Other		109,933		96,611		-13,322

Corporate		5,801		6,082		+281
Consolidated total	¥	2,397,499	¥	2,672,317	¥	+274,818


The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-5. Sony management views each segment as a single operating segment. However, Sony believes that the breakdown of sales and operating revenue to external customers for the segments in this table is useful to investors in understanding sales by product category. In the G&NS segment, Hardware includes home and portable game consoles; Network includes network services relating to game, video and music content provided by Sony Interactive Entertainment; Other includes 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 Home Entertainment & Sound (“HE&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. In the IP&S segment, Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Other includes display products such as projectors and medical equipment.

F - 7


(Sales to Customers by Product Category)
	(Millions of yen)
	Nine months ended December 31
Sales and operating revenue (to external customers)	2016		2017		Change

Game & Network Services
Hardware	¥	505,409	¥	506,366	¥	+957
Network		504,868		718,695		+213,827
Other		202,336		193,894		-8,442
Total		1,212,613		1,418,955		+206,342

Music
Recorded Music		294,296		337,238		+42,942
Music Publishing		46,791		54,693		+7,902
Visual Media and Platform		117,169		190,249		+73,080
Total		458,256		582,180		+123,924

Pictures
Motion Pictures		265,701		302,005		+36,304
Television Productions		168,661		201,514		+32,853
Media Networks		165,558		205,939		+40,381
Total		599,920		709,458		+109,538

Home Entertainment & Sound
Televisions		579,811		700,403		+120,592
Audio and Video		239,770		284,664		+44,894
Other		1,218		1,772		+554
Total		820,799		986,839		+166,040

Imaging Products & Solutions
Still and Video Cameras		267,962		326,362		+58,400
Other		151,700		162,037		+10,337
Total		419,662		488,399		+68,737

Mobile Communications		598,855		564,025		-34,830

Semiconductors		484,332		584,389		+100,057

Financial Services		806,954		950,292		+143,338

All Other		276,660		286,307		+9,647

Corporate		21,595		22,117		+522
Consolidated total	¥	5,699,646	¥	6,592,961	¥	+893,315


The above table includes a breakdown of sales and operating revenue to external customers for certain segments shown in the Business Segment Information on page F-6. Sony management views each segment as a single operating segment. However, Sony believes that the breakdown of sales and operating revenue to external customers for the segments in this table is useful to investors in understanding sales by product category. In the G&NS segment, Hardware includes home and portable game consoles; Network includes network services relating to game, video and music content provided by Sony Interactive Entertainment; Other includes 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 HE&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. In the IP&S segment, Still and Video Cameras includes interchangeable lens cameras, compact digital cameras, consumer video cameras and video cameras for broadcast; Other includes display products such as projectors and medical equipment.

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			December 31			March 31			December 31			March 31			December 31
	2017			2017			2017			2017			2017			2017
ASSETS
Current assets:
Cash and cash equivalents		¥	268,382		¥	427,384		¥	691,760		¥	901,541		¥	960,142		¥	1,328,925
Marketable securities			1,051,441			1,221,687	－			－					1,051,441			1,221,687
Notes and accounts receivable, trade			10,931			14,896			947,602			1,463,359			953,811			1,473,777
Inventories	－					-			640,835			753,658			640,835			753,658
Other receivables			56,807			60,167			167,127			174,005			223,632			234,002
Prepaid expenses and other current assets			112,085			139,288			414,420			410,142			525,861			548,742
Total current assets			1,499,646			1,863,422			2,861,744			3,702,705			4,355,722			5,560,791

Film costs	－			－					336,928			365,783			336,928			365,783

Investments and advances			9,904,576			10,343,208			285,965			291,155			10,111,793			10,556,622

Investments in Financial Services, at cost	－			－					133,514			133,514	－			－

Property, plant and equipment			21,323			29,106			735,590			761,215			758,199			791,607

Other assets:
Intangibles, net			30,643			31,306			553,542			539,721			584,185			571,027
Goodwill			2,375			7,225			520,163			545,111			522,538			552,336
Deferred insurance acquisition costs			568,837			595,180	－			－					568,837			595,180
Deferred income taxes			1,868			1,093			97,090			90,359			98,958			91,452
Other			34,607			35,447			292,529			304,178			323,396			335,878
			638,330			670,251			1,463,324			1,479,369			2,097,914			2,145,873
Total assets		¥	12,063,875		¥	12,905,987		¥	5,817,065		¥	6,733,741		¥	17,660,556		¥	19,420,676

LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings		¥	411,643		¥	481,150		¥	106,437		¥	301,939		¥	518,079		¥	783,089
Notes and accounts payable, trade	－			－					539,900			658,250			539,900			658,250
Accounts payable, other and accrued expenses			31,486			29,261			1,364,042			1,592,858			1,394,758			1,621,542
Accrued income and other taxes			13,512			29,252			92,525			184,622			106,037			213,874
Deposits from customers in the banking business			2,071,091			2,159,747	－			－					2,071,091			2,159,747
Other			173,853			167,598			422,916			422,512			591,874			585,348
Total current liabilities			2,701,585			2,867,008			2,525,820			3,160,181			5,221,739			6,021,850

Long-term debt			75,511			175,188			609,692			422,749			681,462			594,195
Accrued pension and severance costs			31,289			32,358			365,427			371,305			396,715			403,663
Deferred income taxes			317,043			320,602			115,781			107,545			432,824			428,147
Future insurance policy benefits and other			4,834,492			5,104,322	－			－					4,834,492			5,104,322
Policyholders’ account in the life insurance business			2,631,073			2,854,660	－			－					2,631,073			2,854,660
Other			21,825			19,202			317,980			289,109			314,771			284,283
Total liabilities			10,612,818			11,373,340			3,934,700			4,350,889			14,513,076			15,691,120

Redeemable noncontrolling interest	－			－					12,058			14,609			12,058			14,609

Equity:
Stockholders’ equity of Financial Services			1,449,605			1,531,043	－			－			－			－
Stockholders’ equity of Sony without Financial Services	－			－					1,770,632			2,262,025	－			－
Sony Corporation’s stockholders’ equity	－			－			－			－					2,497,246			3,039,893
Noncontrolling interests			1,452			1,604			99,675			106,218			638,176			675,054
Total equity			1,451,057			1,532,647			1,870,307			2,368,243			3,135,422			3,714,947
Total liabilities and equity		¥	12,063,875		¥	12,905,987		¥	5,817,065		¥	6,733,741		¥	17,660,556		¥	19,420,676

F - 9

Condensed Statements of Income

									(Millions of yen)
	Three months ended December 31

									Sony without
	Financial Services								Financial Services								Consolidated
	2016				2017				2016				2017				2016			2017

Financial services revenue		¥	319,142			¥	373,271			¥	-			¥	-			¥	317,342		¥	371,498
Net sales and operating revenue			－				－				2,080,893				2,302,607				2,080,157			2,300,819
			319,142				373,271				2,080,893				2,302,607				2,397,499			2,672,317

Cost of sales	－				－						1,497,477				1,611,178				1,495,036			1,607,962
Selling, general and administrative	－				－						409,947				414,105				411,652			415,532
Financial services expenses			288,539				317,177		－				－						286,740			315,404
Other operating (income) expense, net			7				58				113,006				(13,177	)			113,013			(13,119	)
			288,546				317,235				2,020,430				2,012,106				2,306,441			2,325,779

Equity in net income (loss) of affiliated companies			(1,600	)			251				2,914				4,048				1,314			4,299

Operating income			28,996				56,287				63,377				294,549				92,372			350,837

Other income (expenses), net	－				－						(26,146	)			(7,718	)			(26,145			(7,718	)

Income before income taxes			28,996				56,287				37,231				286,831				66,227			343,119

Income taxes			8,362				16,224				28,594				12,008				36,956			28,234

Net Income			20,634				40,063				8,637				274,823				29,271			314,885

Less - Net income attributable to noncontrolling interests			32				55				1,822				4,138				9,640			18,988

Net income of Financial Services		¥	20,602			¥	40,008			¥	－			¥	－			¥	－		¥	－

Net income of Sony without Financial Services		¥	－			¥	－			¥	6,815			¥	270,685			¥	－		¥	－

Net income attributable to Sony Corporation's stockholders		¥	－			¥	－				－				－			¥	19,631		¥	295,897


	Nine months ended December 31

	Financial Services								Sony without Financial Services								Consolidated
			2016				2017				2016				2017				2016			2017

Financial services revenue		¥	812,371			¥	955,655			¥	－			¥	－			¥	806,954		¥	950,292
Net sales and operating revenue			－				－				4,896,211				5,647,653				4,892,692			5,642,669
			812,371				955,655				4,896,211				5,647,653				5,699,646			6,592,961

Cost of sales	－				－						3,566,875				3,966,400				3,559,927			3,957,700
Selling, general and administrative	－				－						1,084,667				1,155,475				1,088,096			1,159,190
Financial services expenses			698,953				816,330		－				－						693,537			810,967
Other operating (income) expense, net			69				34				165,385				(40,165	)			165,454			(40,131	)
			699,022				816,364				4,816,927				5,081,710				5,507,014			5,887,726

Equity in net income (loss) of affiliated companies			(2,243	)			(182	)			3,922				7,623				1,679			7,441

Operating income			111,106				139,109				83,206				573,566				194,311			712,676

Other income (expenses), net	－				－						(16,194	)			(7,025	)			(30,548			(22,098	)

Income before income taxes			111,106				139,109				67,012				566,541				163,763			690,578

Income taxes			31,775				40,050				49,156				98,430				80,931			138,481

Net Income			79,331				99,059				17,856				468,111				82,832			552,097

Less - Net income attributable to noncontrolling interests			66				139				6,058				7,753				37,193			44,477

Net income of Financial Services		¥	79,265			¥	98,920			¥	－			¥	－			¥	－		¥	－

Net income of Sony without Financial Services		¥	－			¥	－			¥	11,798			¥	460,358			¥	－		¥	－

Net income attributable to Sony Corporation's stockholders		¥	－			¥	－			¥	－			¥	－			¥	45,639		¥	507,620

F - 10

Condensed Statements of Cash Flows

									(Millions of yen)
	Nine months ended December 31

	Financial Services								Sony without Financial Services								Consolidated
	2016				2017				2016				2017				2016			2017
Cash flows from operating activities:
Net income （loss）		¥	79,331			¥	99,059			¥	17,856			¥	468,111		¥	82,832		¥	552,097
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization, including amortization of			52,350				47,887				207,204				210,300			259,554			258,187
deferred insurance acquisition costs
Amortization of film costs	－				－						190,539				259,709			190,539			259,709
Other operating (income) expense, net			69				33				165,385				(40,165	)		165,454			(40,131	)
(Gain) loss on sale or devaluation of securities			29				213				4,706				324			4,735			537
investments, net
(Gain) loss on revaluation of marketable securities held			(42,727	)			(109,888	)	－				－					(42,727	)		(109,888	)
for trading purposes, net
Changes in assets and liabilities:
(Increase) decrease in notes and accounts			(2,261	)			(3,165	)			(371,914	)			(484,877	)		(372,978	)		(488,285	)
receivable, trade
(Increase) decrease in inventories	－				－						(18,622	)			(88,954	)		(18,622	)		(88,954	)
(Increase) decrease in film costs	－				－						(242,875	)			(279,082	)		(242,875	)		(279,082	)
Increase (decrease) in notes and accounts	－				－						87,698				90,484			87,698			90,484
payable, trade
Increase (decrease) in future insurance policy			336,157				424,084		－				－					336,157			424,084
benefits and other
(Increase) decrease in deferred insurance			(70,070	)			(65,248	)	－				－					(70,070	)		(65,248	)
acquisition costs
(Increase) decrease in marketable securities held			(60,868	)			(64,727	)	－				－					(60,868	)		(64,727	)
for trading purposes
Other			(46,339	)			(32,631	)			40,605				242,971			(5,577	)		211,546
Net cash provided by (used in) operating activities			245,671				295,617				80,582				378,821			313,252			660,329

Cash flows from investing activities:
Payments for purchases of fixed assets			(10,452	)			(10,553	)			(250,005	)			(179,240	)		(260,457	)		(189,780	)
Payments for investments and advances			(943,712	)			(671,982	)			(7,410	)			(16,456	)		(951,199	)		(688,508	)
Proceeds from sales or return of investments and			213,629				257,582				13,837				5,404			226,461			262,056
collections of advances
Other			1,256				157				2,425				49,167			3,681			49,319
Net cash provided by (used in) investing activities			(739,279	)			(424,796	)			(241,153	)			(141,125	)		(981,514	)		(566,913	)

Cash flows from financing activities:
Increase (decrease) in borrowings, net			319,188				157,271				28,914				(12,094	)		347,830			145,176
Increase (decrease) in deposits from customers, net			254,279				154,374		－				－					254,279			154,374
Dividends paid			(23,926	)			(23,921	)			(25,308	)			(27,750	)		(25,308	)		(27,750	)
Other			1,355				457				(100,734	)			1,750			(108,950	)		(6,612	)
Net cash provided by (used in) financing activities			550,896				288,181				(97,128	)			(38,094	)		467,851			265,188

Effect of exchange rate changes on cash and cash equivalents			－				－				(11,525	)			10,179			(11,525	)		10,179

Net increase (decrease) in cash and cash equivalents			57,288				159,002				(269,224	)			209,781			(211,936	)		368,783
Cash and cash equivalents at beginning of the fiscal year			233,701				268,382				749,911				691,760			983,612			960,142

Cash and cash equivalents at end of the period		¥	290,989			¥	427,384			¥	480,687			¥	901,541		¥	771,676		¥	1,328,925

F - 11

Going Concern Assumption

Not Applicable

Significant Changes in Shareholders' Equity

Not Applicable

Accounting Policies and Other Information

(Number of Consolidated Subsidiaries and Affiliated Companies)

As of December 31, 2017, Sony had 1,308 consolidated subsidiaries (including variable interest entities) and 109 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 December 31
Net income attributable to Sony Corporation’s stockholders	2016		2017
— Basic		1,262,223		1,264,083
— Diluted		1,288,372		1,292,615

	(Thousands of shares)
	Nine months ended December 31
Net income attributable to Sony Corporation’s stockholders	2016		2017
— Basic		1,261,862		1,263,485
— Diluted		1,288,061		1,291,497

The dilutive effect in the weighted-average number of outstanding shares for the three months and nine months ended December 31, 2016 and 2017 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, 2018. As a result of this realignment, the operation of the former Components segment is now included in All Other. In connection with this realignment, the sales and operating revenue and operating income (loss) of each segment for the comparable period have been reclassified to conform to the current presentation.

The G&NS segment includes the manufacture and sales of home gaming products, network services businesses 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 HE&S segment includes Televisions as well as Audio and Video businesses. The IP&S segment includes the Still and Video Cameras business. The MC segment includes the manufacture and sales of mobile phones and Internet-related service businesses. The Semiconductors 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 overseas disc manufacturing, recording media and battery businesses. Sony’s products and services are generally unique to a single operating segment.

F - 12

(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 nine months ended December 31, 2016 have been made to conform to the presentation for the three and nine months ended December 31, 2017.

F - 13

Outlook for the Fiscal Year Ending March 31, 2018

The forecast for consolidated results for the fiscal year ending March 31, 2018, as announced on October 31, 2017, has been revised as follows:

	(Billions of yen)
	March 31, 2017 Results		October Forecast		February Forecast		Change from October Forecast
Sales and operating revenue	¥	7,603.3	¥	8,500	¥	8,500		-	-
Operating income		288.7		630		720	+¥90 billion		+14.3%
Income before income taxes		251.6		600		690	+¥90 billion		+15.0%
Net income attributable to Sony Corporation’s stockholders		73.3		380		480	+¥100 billion		+26.3%

Assumed foreign exchange rates for the remainder of the fiscal year ending March 31, 2018 are the following:

	Assumed foreign exchange rates for the three months ending March 31, 2018	(For your reference)
		Assumed foreign exchange rates for the six months ending March 31, 2018 at the time of the October forecast
1 U.S. dollar	approximately 113 yen	approximately 112 yen
1 Euro	approximately 134 yen	approximately 130 yen

The consolidated sales and operating revenue (“sales”) forecast for the fiscal year ending March 31, 2018 remains unchanged from the October forecast primarily due to expected increases in sales in the Financial Services and Music segments, substantially offset by expected decreases in sales in the Game & Network Services, Mobile Communications and Semiconductors segments.

Consolidated operating income is expected to be higher than the October forecast mainly due to the absence of allocations for contingencies incorporated into the October forecast for All Other, Corporate and elimination, as well as expected increases in operating income in the Music, Semiconductors, Financial Services, and Home Entertainment & Sound segments.

Restructuring charges for the Sony Group are expected to be approximately 15 billion yen in the fiscal year ending March 31, 2018, which remains unchanged from the October forecast, compared to 60.2 billion yen recorded in the fiscal year ended March 31, 2017. Restructuring charges are recorded as an operating expense and are included in the above-mentioned forecast for operating income.

Net income attributable to Sony Corporation’s stockholders is expected to be higher than the October forecast mainly due to the above-mentioned higher-than-expected consolidated operating income and an expected decrease in income tax expense mainly due to the recording of a tax benefit, as a result of tax reform in the U.S., in the third quarter ended December 31, 2017.

The forecast for each business segment for the fiscal year ending March 31, 2018 has been revised as follows:

	(Billions of yen)
	March 31, 2017 Results			October Forecast			February Forecast
Game & Network Services (G&NS)
Sales and operating revenue		¥1,649.8			¥2,000			¥1,940
Operating income		135.6			180			180
Music
Sales and operating revenue		647.7			730			780
Operating income		75.8			94			110
Pictures
Sales and operating revenue		903.1			1,020			1,020
Operating income (loss)		(80.5	)		39			39
Home Entertainment & Sound (HE&S)
Sales and operating revenue		1,039.0			1,200			1,200
Operating income		58.5			76			80
Imaging Products & Solutions (IP&S)
Sales and operating revenue		579.6			650			650
Operating income		47.3			72			72
Mobile Communications (MC)
Sales and operating revenue		759.1			780			740
Operating income		10.2			5			5
Semiconductors
Sales and operating revenue		773.1			880			850
Operating income (loss)		(7.8	)		150			155
Financial Services
Financial services revenue		1,087.5			1,170			1,250
Operating income		166.4			170			175
All Other, Corporate and elimination
Operating loss		(116.7	)		(156	)		(96	)
Consolidated
Sales and operating revenue		7,603.3			8,500			8,500
Operating income		288.7			630			720

Game & Network Services

Sales are expected to be lower than the October forecast primarily due to the impact of a change in launch dates of certain software titles, as well as the impact of higher-than-expected sales of hardware at promotional prices during the holiday season. The forecast for operating income remains unchanged primarily due to a reduction in selling, general and administrative expenses, substantially offset by the impact of the above-mentioned decrease in sales.

Music

Sales and operating income are expected to be higher than the October forecast primarily due to higher-than-expected Recorded Music sales as well as Visual Media and Platform sales.

Pictures

The forecasts for sales and operating income remain unchanged from the October forecast, primarily due to the stronger-than-expected theatrical performance of Jumanji: Welcome to the Jungle being substantially offset by lower-than-expected home entertainment revenues for Motion Pictures.

Home Entertainment & Sound

The forecast for sales remains unchanged from the October forecast. Operating income is expected to be higher than the October forecast mainly due to an improvement in product mix and a reduction in fixed costs and other operating costs, both in home audio and video.

Mobile Communications

Sales are expected to be lower than the October forecast primarily due to an expected decrease in smartphone unit sales. The forecast for operating income remains unchanged as the impact of the above-mentioned expected decrease in sales is expected to be offset by a reduction in operating costs.

Semiconductors

Sales are expected to be lower than the October forecast primarily due to an expected decrease in unit sales of image sensors for mobile products. Operating income is expected to be higher than the October forecast primarily due to higher-than-expected profits resulting from sales of assets and cost reductions, partially offset by the above-mentioned expected decrease in sales.

Financial Services

Financial services revenue and operating income are expected to be higher than the October forecast because results in the third quarter ended December 31, 2017 exceeded expectations.

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 forecasts for sales and operating income for the IP&S segment remain unchanged from the October forecast.

The forecasts for additions to long-lived assets, depreciation and amortization, and research and development expenses for the current fiscal year remain unchanged from the October forecast:

Consolidated

	(Billions of yen)
	March 31, 2017 Results		February Forecast
Additions to Long-lived Assets*		¥272.2		¥330
[additions to property, plant and equipment (included above)		184.0		235	]
[additions to intangible assets (included above)		88.2		95	]
Depreciation and amortization**		327.0		355
[for property, plant and equipment (included above)		169.3		175	]
[for intangible assets (included above)		157.8		180	]
Research and development expenses		447.5		450

* Excluding additions from business combinations.

** Including amortization expenses for deferred insurance acquisition costs.

Sony without Financial Services

	(Billions of yen)
	March 31, 2017 Results		February Forecast
Additions to Long-lived Assets*		¥257.6		¥310
[additions to property, plant and equipment (included above)		179.3		230	]
[additions to intangible assets (included above)		78.3		80	]
Depreciation and amortization		280.0		280
[for property, plant and equipment (included above)		167.4		170	]
[for intangible assets (included above)		112.6		110	]

* Excluding additions from business combinations.

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

The Music segment results include the yen-translated results of Sony Music Entertainment and Sony/ATV Music Publishing, both 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 segment also includes equity in net income (loss) for EMI Music Publishing (“EMI”), an affiliated company accounted for under the equity method for which Sony records 39.8% of EMI’s net income in the segment operating income.

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 Life”), Sony Assurance Inc. and Sony Bank Inc. 　The results of Sony Life discussed in the Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

Cautionary Statement

Statements made in this release with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:

(i)	the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;

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

(iii)

Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including 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;

(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 and regulatory conditions;

(vi)	changes in laws, regulations and government policies in the markets in which Sony operates, including those related to taxation and corporate social responsibility;

(vii)

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;

(viii)

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

(ix)	Sony’s ability to maintain product quality and customer satisfaction with its products and services;

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

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

(xii)

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

(xiii)

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, supply and distribution of its products, and its other business operations;

(xiv)

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

(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)

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;

(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, potential business disruptions or financial losses; and

(xviii)

risks related to catastrophic disasters or similar events.

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