Status of Sony Group Business Operations Affected by 2016 Kumamoto Earthquakes (Fourth Update)
The status of Sony Group business operations affected by the earthquake of April 14, 2016 and subsequent earthquakes in the Kumamoto region, as of today, is as follows:
-Operations at Sony Semiconductor Manufacturing Corporation's Kumamoto Technology Center (located in Kikuchi Gun, Kumamoto Prefecture), which is the primary manufacturing site of image sensors for digital cameras and security cameras as well as micro-display devices, had been suspended due to the impact of the earthquakes. However, as of May 9, 2016, testing operations, which are one of the back-end processes carried out on the upper layer of the building, have resumed and other back-end processes, such as assembly, are also expected to restart sequentially beginning May 17, 2016.
-Wafer processing operations located on the lower layer of the building are expected to restart sequentially beginning May 21, 2016.
-Although there was a delay in the supply of components to Sony from certain third-party suppliers that also have manufacturing facilities in the Kumamoto region, inventory adjustments have been made and a timeframe for regaining supply levels is now in place, so no material impact is anticipated on Sony’s business operations.
Based on the above, the effect of the Kumamoto earthquakes on business operations within the Mobile Communications, Game & Network Services and Home Entertainment & Sound segments is not anticipated to have a material impact on Sony’s consolidated results.
On the other hand, regarding the Devices and Imaging Products & Solutions segments, the impact on Sony’s consolidated results due to the effect of the earthquakes, including from opportunity losses, as well as expenses for recovery and reinforcement work, continues to be evaluated.
Sony is scheduled to announce on May 24, 2016 its consolidated results forecast for the fiscal year ending March 31, 2017, as well as its forecasts for the Mobile Communications, Game & Network Services, Imaging Products & Solutions, Home Entertainment & Sound and Devices segments for the fiscal year ending March 31, 2017.
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