Game & Network Services Segment 3
Mobile Communications Segment 22
Imaging Products & Solutions Segment 36
Digital Imaging Products
Professional Solutions
Home Entertainment & Sound Segment 63
Televisions
Audio and Video
Devices Segment 81
Sony IR Day 2014
Game & Network Services Segment
November 25, 2014
Andrew House
President and Group CEOSony Computer Entertainment Inc.
Group Executive in Charge of Network Entertainment BusinessSony Corporation
Sony IR Day 2014
Game & Network Services Segment
1. Business Overview
2. Mid-term Business Direction
3. Financial Targets
4. Summary
4
Agenda Game & Network Services Segment
Sony IR Day 2014
1-1. Business Overview
Sony Computer EntertainmentResearch, development and sales of hardware and software for PlayStation®4 (PS4™), PlayStation®3 (PS3™), PlayStation®Vita (PS Vita), and PSP® (PlayStation®Portable)
Sony Network EntertainmentProvide content and services for games, music and movies through Sony Entertainment Network for PlayStation®, Android, iOS based devices
Game & Network Services Segment
5
Sony IR Day 2014
1-1. Business Overview
1993: Sony Computer Entertainment Inc. founded
1994: Introduction of original PlayStation® Introduction of CD-ROM as a major format
2000: Introduction of PlayStation®2 DVD-ROM adaption
2004: Introduction of PSP® (PlayStation®Portable) First portable entertainment system developed by SCE
2006: Introduction of PlayStation®3 BD-ROM adaption
Launch of PlayStation®Network (PSNSM) Global launch of network service
PlayStation®Store (PS Store) Open Enabling digital content distribution
2008: Video delivery service launch on PS Store First service for purchase and rental of video content for PlayStation® platform
2009: Offer 3rd party video services Netflix support on PS3™
2010: Sony Network Entertainment International LLC founded
Introduction of Video Unlimited/Music Unlimited Expansion of service offerings to non PlayStation® platforms
2011: Introduction of PlayStation®Vita Realized ultimate portable entertainment system
2013: Introduction of PlayStation®4 Fastest 10 million units sales in PlayStation® history
The History of Introduction of Platforms and Services
Game & Network Services Segment
6
Sony IR Day 2014 7
1-2. Regional Headquarters & SCE Worldwide Studios
■ ■
■
Game & Network Services Segment
Sony Computer Entertainment America, LLC.Sony Network Entertainment International LLC.San Mateo, USA
Sony Computer Entertainment Europe Ltd.London, UK
Sony Computer Entertainment Inc.Sony Computer Entertainment Japan AsiaTokyo, Japan
Japan StudioPolyphony Digital Inc.
Bend StudioNaughty Dog Inc.San Diego StudioSan Mateo StudioSanta Monica StudioSucker Punch Productions
Evolution StudiosGuerrilla GamesGuerrilla CambridgeMedia MoleculeLondon Studio
■ Regional Headquarters
■ SCE Worldwide Studios
Sony IR Day 2014
1-3. Sales by Product/Region
FY2013 Product Sales Ratio FY2013 Area Sales Ratio
Game & Network Services Segment
8
Net Sales1,043.9 bln yen
Contents &Services
44% Hardware56%
Net Sales1,043.9 bln yen
JapanAsia16%
EuropeMiddle East
Others42%
Americas42%
Sony IR Day 2014 9
1-4. Financial Performance:FY2014 Op. Income increase/decrease factors
Profit improvement in HW• PS4™: Profit improvement due to higher sales• PS3™: Profit reduction due to lower sales despite cost reduction• PS Vita: Profit increase due to new model launch
1
Contents & Services• Game SW: Profit reduction due to reduced number of major titles• Network: Profit increase due to growth of PlayStation®Plus (PS Plus),
game content revenue, video and music services
Negative impact of the appreciation of the USD
2
3
4
FY13 FY14(Forecast as of
October 2014)
FY12
-18.8
Op. Income
1,290
35
Sales
-3.7
1,043.9 749.9
Profit reduction due to increased operating expenses• Decrease in marketing cost related to HW• Increase in network infrastructure related costs
1
2 3
4
(bln yen)
Game & Network Services Segment
Sony IR Day 2014 10
2. Mid-term Business Direction
Expand the PlayStation® Ecosystemby delivering evolved and integrated game & network services
Strategy I : Retain and expand engaged PlayStation® users
Strategy II : Increase ARPPU and drive ancillary revenue
ARPPU = Average Revenue Per Paying User
Game & Network Services Segment
Sony IR Day 2014 11
2. Mid-term Business Direction
MAU = Monthly Active Users
PlayStation 4PlayStation Vita
PlayStation Network
PlayStation®
Users50M+ MAU
Contents& Services
PS4™/PS Vita/PSNSM
PlayStation® Ecosystem
Game & Network Services Segment
Sony IR Day 2014 12
Retain and expand engaged PlayStation® usersContinuous enhancement of PS4™ game features to maintain and strengthen competitive advantage
Relentless efforts on hardware cost reduction
Game & Network Services Segment
Deliver new experiences,enhance functions and usability
2. Mid-term Business Direction
Sony IR Day 2014 13
2. Mid-term Business Direction
Retain and increase engaged PlayStation® usersAcquire casual users while further strengthening the engagement of core gamers through relevant title offerings
Game & Network Services Segment
Enrich games, video and music servicesfor casual user segment
Additional game title introduction for core user segment
Sony IR Day 2014 14
2. Mid-term Business Direction
Retain and increase engaged PlayStation® usersExpand customer base through innovative network services like cloud TV and streaming games
Game & Network Services Segment
Remove constraints of consoleand waiting time with PS Now
Sony IR Day 2014 15
2. Mid-term Business Direction
Retain and increase engaged PlayStation® usersExpand customer base through innovative network services like cloud TV and streaming games
Game & Network Services Segment
Provide innovative live + DVR experiencethrough the cloud TV service
PlayStation™Vue transforms the TV experience by putting the customer in control and enabling them to experience TV in a more personalized and interactive way
Sony IR Day 2014 16
2. Mid-term Business Direction
Retain and increase engaged PlayStation® usersAddressing growth opportunities in markets with economic development and cultural transitions
Markets with future growth potential includingChina and Latin America
Game & Network Services Segment
Gaming culture transition, e.g. in Germany and the Middle East
Sony IR Day 2014 17
2. Mid-term Business Direction
Increase ARPPU and drive ancillary revenueRealize higher conversion rate and improve retention rate of PS Plus by enhancing its user value
Game & Network Services Segment
Strong online multiplayer titles
Selection of relevant complementary titlesPrioritized invitation for a/b testing
End of Sep 2014
PS4™launched
2010 2013 2017
PS Plus Number of Subscribers
Sony IR Day 2014 18
2. Mid-term Business Direction
Increase ARPPU and drive ancillary revenueCreate more demand via personalized TV, Video and Music distribution services
Increase revenue through partnerships with best-in-class services, leveraging an attractive user base
Game & Network Services Segment
“Just for you” curation for PlayStation® gamers
Original contentprograming
Offer 3rd party video servicesto increase frequency of
console usage
Sony IR Day 2014 19
2. Mid-term Business Direction
Expand the PlayStation® Ecosystemby delivering evolved and integrated game & network services
Strategy I : Retain and expand engaged PlayStation® users
Strategy II : Increase ARPPU and drive ancillary revenue
• Continuous enhancement of PS4™ game features to maintain and strengthen competitive advantage
• Acquire casual users while further strengthening the engagement of core gamers throughrelevant title offerings
• Expand customer base by innovative network services like Cloud TV service and Streaming game service
• Addressing growth opportunities in markets with economic development and cultural transitions
• Realize higher conversion rate and improve retention rate of PS Plus by enhancing its user value• Create more demand via personalized TV, Video and Music distribution services• Increase revenue through partnerships with best-in-class services by leveraging attractive user base
Game & Network Services Segment
ARPPU = Average Revenue Per Paying User
Sony IR Day 2014 20
3. Initiatives to Improve Profitability (FY2014 to FY2017) Game & Network Services Segment
1. Maintain and expand devoted PlayStation® users
2. Increase ARPPU and ancillary revenue
3. Operating expense management
1,400~1,600
1,043.9749.9 1,290
Sales
5%~6%
Operating IncomeMargin2.7%
FY12 FY13 FY14(Forecast
as of October 2014)
FY17(Target)
(bln yen)
Sony IR Day 2014 21
4. Summary
Sales 1,400~1,600 billion yen
Operating Income Margin 5%~6%
FY2017 Financial Targets
Game & Network Services Segment
Increase sales and profit through expansion of PlayStation® users, providing compelling and cutting edge game/network experiences
Sony IR Day 2014
Mobile Communications Segment
November 25, 2014
Hiroki Totoki
President & CEOSony Mobile Communications Inc.
Sony IR Day 2014
Mobile Communications Segment
1. Business Overview
2. FY2014 Operating Performance
3. Market Trends
4. Mid-term Business Direction
23
Agenda Mobile Communications Segment
Sony IR Day 2014
Tablet
Accessories and Others
Sales1,191.8
bil yen
Japan
United States
EuropeChina
Asia-Pacific
Other Areas
24
1-1. FY2013 Business Overview
Sales1,191.8
bil yen
Smartphone
Mobile Communications Segment
FY2013 Sales by Key Product Groups FY2013 Sales by Region
Sony IR Day 2014 25
1-2. Market Share in Key Markets
Source: Sony Mobile
0.7%17.5%8.8%
5.9% 5.4% 6.5%0.9%
Japan
Asia-Pacific Latin AmericaChina
North America
Middle East and Africa
EuropeInside figure: FY13 market sizeOutside figure: Sony share
1.4 trillion yen 4.4 trillion yen 5.3 trillion yen
7.5 trillion yen 3.3 trillion yen 1.8 trillion yen 1.7 trillion yen
Mobile Communications Segment
Sony IR Day 2014 26
2-1. Changes in FY2014 Operating Income (vs. FY2013)
Unfavorable impact of the appreciation of the US dollar
1
Sales increase, mainly in high-end products2
Increase in marketing, R&D and IP expenses3
Increase in restructuring charges4
Operating Income
1,350Sales
1,191.8766.1
-41.1
12.6
-204
1 2 3 4
5
Impairment charge of goodwill 176 bil yen5
Mobile Communications Segment
FY12 FY13 FY14
Despite recording a sales increase, mainly in high-end products, a larger operating loss is expected, primarily due to the impairment charge of goodwill, the increase of marketing
expenses, the unfavorable impact of foreign exchange rates, and the expected increase of restructuring charges.
(bln yen)
Sony IR Day 2014 27
2-2. Changes in FY2014 Operating Income (vs. May FCT, excl. impairment charge)
1,530
26
-28
1 2 3 4
May FCT
Oct FCT
Mobile Communications Segment
Unfavorable impact of the appreciation of the US dollar
1
Decrease in sales in mid/low-end smartphone segment
2
Reduction of marketing expenses and research and development expenses
3
Increase in restructuring charges4
Operating Income
Sales1,350
Operating income is expected to decline sharply versus May forecast, primarily due to the decrease in sales in mid/low-end smarphones mainly in South East Asia, China and
Europe, partially offset by a reduction in marketing and R&D expenses.
(bln yen)
Sony IR Day 2014
0
2
4
6
8
10
12
14
16
18
FY14 FY15 FY16 FY170
5
10
15
20
25
30
35
FY14 FY15 FY16 FY17
28
3-1. Smartphone Market Trends (by price segment)
Value (trillion yen)
Source: Sony Mobile
High-end(> 30,000
yen)
Majority of market value Moderate growth: CAGR around 3%
(FY14-17) Major markets: US, Europe, China
Mid-range(14,000 -
30,000 yen)
Moderate growth: CAGR 3+% (FY14-17)
Decline of ASP due to growth of low-end segment
Major markets: China, Europe, Asia
Low-end(< 14,000
yen)
High growth: CAGR 10+%
(FY14-17) Driving overall ASP declines Major markets: China and Asia
1.23
55%
24%
21%
ASP 22,000 yen 19,000 yen
CAGR (FY14-17)
4.4%
2.7%
Units (billion units)
1.381.52
1.64
27.5 28.9 30.2 31.2
3.3%
11.1%
CAGR (FY14-17)10.1%
2.9%
3.0%
17.5%
55%
22%
56%
22%
Mobile Communications Segment
* wholesale price
FCT FCT FCT FCT FCT FCT FCT FCT
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
ASP decline in overall market due to growth slowdown in the high-end segment and rapid growth in the low-end segment
CAGR: Compound Annual Growth Rate
Sony IR Day 2014 29
North America:Stable growth, mainly in high-endJapan:
Limited growth
* Trillion yen, FY14-17 CAGR %
Asia-Pacific:Fastest growing market, primarily in low-end
Middle East and Africa:Growth mainly in low-end
China:Market growth slowing down
Europe: Growth in high-end
Latin America:Mid/low-end comprises 2/3 of market
Mobile Communications Segment3-2. Smartphone Market Trends (by region)
Source: Sony Mobile
Growth in China is slowing down, and the market growth will be largely driven by low-end smartphone market.
FY17
FY14 FY17
FY14 FY17
7.9 8.5
FY14
5.8 6.3
FY17FY14
2.2
FY14 FY17
3.64.8
2.5
1.3 1.4
CAGR2.2%
CAGR2.4%
CAGR10.5%
CAGR3.0%
CAGR5.0%
FY14 FY17
4.6 5.1
CAGR3.8%
FY14 FY17
2.12.6
CAGR7.2%
High-end
Mid-range
Low-end
Sony IR Day 2014
6.4
3.9
4.5
6.4
3.7
3.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0
高価格帯
中価格帯
低価格帯
FY14
FY17
10.9
3.5
2.0
9.7
3.0
1.7
0.0 2.0 4.0 6.0 8.0 10.0 12.0
高価格帯
中価格帯
低価格帯
FY14
FY17
30
3-3. Channel Development
Operator Channels Open Channels
Mobile Communications Segment
Low-end Low-end
Mid-range Mid-range
High-end High-end
Source: Sony Mobile
(trillion yen)
Limited growth in high-end and mid-range in operator channels, but rapid growth in low-end in open channels
Smartphone MarketWorldwide
27.5 Trillion Yen (FY14)
31.2 Trillion Yen (FY17)
Sony IR Day 2014 31
Selection and Focus 1
Selection and Focus 2
Reshape corporate structure and drive transformation, particularly in HQ and support functions
Revise sales and marketing strategy by region, and consider transformation in order to improve the efficiency of our investments and enhance profit management
Selection and Focus 4
Selection and Focus 3
Shift marketing focus from acquisition to retention, utilizing data analytics to improve cost efficiency and marketing effectiveness
Mobile Communications Segment4-1. Mid-term Business Direction
Streamline product portfolio, and improve efficiency of both hardware and software development in order to enhance cost competitiveness
Selection and Focus:Transforming to better compete in the quickly moving mobile industry
Sony IR Day 2014
4-2. Sales & Marketing Set-up (current) Mobile Communications Segment
32
Sony IR Day 2014
4-3. Streamline Product PortfolioCompany A Company B Company C Company D
Approx. 70% reduction
Average of the above four companies
Sony Mobile
Approx. 40% reduction
Approx. 50% reduction
Approx. 50% reduction
Mobile Communications Segment
Approx. 50% reduction Approx. 30%
reduction
Source: Sony Mobile
Improve profitability by reducing number of products, and improving resource allocation per product
33
Sony IR Day 2014
4-4. Marketing Efficiency Improvement
Retention Rate of Xperia Customers- Continuously improving
Net Promoter Score of Xperia Customers- Retained customers show high score
35%
50%
0%
20%
40%
60%
2014 2017
Steadily improve retention rate of Xperia customers
* Worldwide
* Net Promoter Score is a KPI measuring customer loyalty.
Mobile Communications Segment
20
40 43
4
16 16
8
2226
0
10
20
30
40
50
2012 2013 2014
既存顧客 新規顧客 顧客全体Retained Acquired Total
Source: Sony Mobile
34
20%
25%
30%
35%
Aug'13
Sep'13
Oct'13
Nov'13
Dec'13
Jan'14
Feb'14
Mar'14
Apr'14
May'14
Jun'14
Jul'14
Aug'14
Sep'14
Sony IR Day 2014
4-5. Lower Breakeven Point
FY12 FY13 FY14 FY16
Approx. 30% reduction
OPEX Operating Gross Margin
2-3% improvement
Mobile Communications Segment
FY12 FY13 FY14 FY16
2-3 pointsimprovement
Drive transformation to generate stable profit
35
Sony IR Day 2014
Imaging Products & Solutions Segment
November 25, 2014
Shoji NemotoEVP, Corporate Executive Officer
President of Imaging Products and Solutions Sector,President of Professional Solutions Group
Shigeki IshizukaSVP, Corporate Executive
President of Digital Imaging Business GroupSony Corporation
Sony IR Day 2014 37
Agenda
Overview of Imaging Products & Solutions Segment
Digital Imaging Products
1. Business Overview
2. Forecasted Market Trends
3. Mid-term Business Direction
Professional Solutions
4. Business Overview
5. Mid-term Business Direction
Imaging Products & Solutions Segment
6. Business Performance
7. Summary
Imaging Products & Solutions Segment
Sony IR Day 2014 38
Overview of Imaging Products & Solutions Segment
HandyCamActionCam
New Camera
Compact Digital Still CameraDigital Interchangeable Lens Camera
(Mirrorless/DSLR)Lens portfolio
Camcorder for Pro-sumers
Sen
sing
M
odul
es
Sec
urity
, F
elic
a, e
tc.
Content Creation
Digital Imaging Products Business Professional Solutions Business
Cu
sto
mer
S
egm
ents
Consumers B2B
System Solution
Imaging Platform
Mission : With continuous innovation in the Digital Imaging category, we aim to firmly maintain Sony’s leading position in the industry and contribute to the Sony Group by generating stable profit
Visual Presentation
Medical
Imaging Products & Solutions Segment
Sony IR Day 2014
FY2013 Sales by Products FY2013 Sales by Region
39
1-1. Business Overview
動画
静⽌画
Others
Sales442.7
bln yen
Japan
US
Europe
China
Asia,Middle East & Africa
Others
Sales442.7
bln yen
Category breakdown*1
Video Camera: Consumer Video Camera (“Consumer CAM” *2) *3, Professional Video Camera (“Professional CAM”)Still Camera: Compact Digital Still Camera (“DSC”), Interchangeable Lens Camera (“ILC”), Interchangeable Lens*2. CAM=Video Camera *3. Including Action Camera
VideoCamera
StillCamera
*1. abbreviated name in parentheses () will be used in this presentation
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014 40
1-2. Key Products’ Market Share (Value basis)
No.3Share
FY2013 Still Camera Market
Market Share by Product Category
DSC: 19%(No.3)(Premium DSC*1 share: over 30%(No.1))
ILC (Inc. Lens): 9%(No.3)(Mirror-less camera share: 40% (No.1))
Market Share by Product Category
Consumer CAM: 37% (No.1)(Conventional video camera share: 50% (No.1))
Professional CAM: 48% (No.1)
FY2013 Video Camera Market
Market Size: 2,300bln yen
No.1Share
Market Size: 320bln yen
*1. Premium DSC= DSC with large (1/1.7inch over) imager or high zoom (x20 over)
Source: Sony
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014 41
2. Forecasted Market Trends by Product
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY14 FY15 FY16 FY17Video Camera Market Still Camera Market
The video camera market is expected to shrink slightly, while the still camera market is expected to shrink significantly. In still cameras, the percentage of mirror-less ILCs will increase
静⽌画市場
動画市場
FY17FY14
FY17FY14
(Thousand units)
Source: Sony
Still CameraMarket
CompositionForecast
Video CameraMarket
CompositionForecast
ILC: Single reflex DSCILC: Mirror-less
Consumer CAM Professional CAM
Expect increase in ratio of ILC, especially mirror-less
No significant change in market composition Professional cameras accounts for 30% on value basis
(Unit Basis)
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014 42
3-1. FY2014 Business Outlook and Mid-term Business Direction
0
50
100
150
200
250
300
350
400
450
500
FY13 FY14⾒込
Change in FY2014 Operating Income
Mid-term Business Direction
Aim to sustain highly profitable business by continuously focusing on premium and growing markets while pursuing operational efficiencies
PremiumShift
Operational Improvement
Growth of Lens Biz.
Others
NegativeFactor
PositiveFactor
FY13 FY14(Forecast as of October 2014)
Reasons for Improvement from FY2013→FY2014
① Improvement in product mix due to the shift to premium products (ILC, DSC)
② Growth of “α” interchangeable lens business
③ Improvement in operational efficiency
- Reduction in sales company SGA - Reduction in fixed costs associated with manufacturing- Improvement in development efficiencies by propelling Design Platform
Decline in Shipments
due to Market
Shrinkage
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014
Strategy VContinuous Improvement inOperational Efficiency
Strategy IEnforcement of “α” Interchangeable LensCamera (ILC) Business
Strategy IIExpansion of “α” Interchangeable Lens Business
Strategy IIIDSC/CAM Further Premium Shift
Strategy IVApplication of Camera Technology toB2B Market
43
3-2. Mid-term Business Direction
Aim to sustain highly profitable business by continuously focusing on premium and growing markets while pursuing operational efficiencies
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
ILC: Single reflex *2
ILC: Mirror-less *2
DSC (Premium *3)
DSC (Entry)
Consumer Video Camera *4
Consumer Camera Market *1(Value basis)
*1 Source: Sony *2 Including Interchangeable Lens*3 Premium DSC= DSC with large (1/1.7inch over) imager or high zoom (x20 over)*4 Including Action Camera
Growing Segment
Mature Segment
FY08 FY14FCT
FY17FCT
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014
3-3. Strategy I. Enforcement of “α” ILC Business: Activity of FY2013 / 2014
Released Nov. 2013
Optical Low-pass Filter-lessUltra High Resolution (35M pixels)
FY2014The World’s Best Technology in a Compact Body
FY2013Create New Full Frame Mirror-less Camera Market
World’s Highest SensitivityISO409600
High-endUser
Middle&
EntryUser
+
+
Entry and Middle class Mirror-less camera line-up
with top market share
New
World’s First,35mm Full Frame
Released Nov. 2013
World’s Fastest Autofocus*1*1 α6000 as of Feb. 2014
Released Jun. 2014 To be released Dec. 2014
Released May 2014
Released Sep. 2014
Wide-area
Depth
Time
179-point focal plane phase-detection AF sensor
Worldʼs fastest* AF speed of 0.06 sec* α6000 as of Feb. 2014. Based on Sony research
AF algorithm for steadfast andaccurate prediction of next move
World’s First Full Frame ILC with 5-axis image stabilization
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014
FY2015FY2014FY2013
高付加価値
普及
4KImage Cube
UltimateSpeed
UltimateResolution
UltimateSensitivity
AF
Image Stabilization
3-4. Strategy I. Enforcement of “α” ILC Business: Our Next Vision
Establish clear differentiation from othersby utilizing 3 key in-house core technologies
Create New Full Frame Mirror-
less Camera Market
The World’s Best Technology in a Compact Body
High-endUser
Middle&
EntryUser
New
Imaging Products & Solutions SegmentDigital Imaging Products
45
Sony IR Day 2014
FY20135 FE lenses
In-house lenstechnologies
Total Lens Line-up*3
FY2013FY2014*1
↓FY2015~(Short term goal)
Branding Strategy
Technology
: 56 Lenses: 64 Lenses
: Over 70 Lenses
Product
Customer
Aspherical Lens Elements
ED (Extra-low Dispersion) Glass
Nano AR Coating Circular Aperture Super Sonic-wave Motor (SSM)Linear Motor
Expansion of FE line-up Rich lens line-up offering versatile shooting options
Cumulative production*2
over 30 mil. unitsFY2014*1
13 FE lenses
FY2015~Over 20FE lenses
Established brand of optics from analog era
Branding mainly for- Wide ~ Standard- Prime type Lenses
Brand lenses with Sony’s cutting edge digital technology
Branding mainly for-Standard to Telephoto-Zoom type Lenses
*2. Total number of Interchangeable lens produced for Sony ILC, including lens produced by Konika Minolta in the past. *1. Including lenses under development and to be released within fiscal year 2014 (~March, 2015). *3. Total number of Interchangeable lenses in Sony ILC line-up.
Accelerate lens business by expanding rich lens line-up, especially on full frame E-mount (FE) lens, and marketing them with “G” brand and “Zeiss” brand backed by cutting edge in-house lens technology
3-5. Strategy II. Expansion of “α” Interchangeable Lens BusinessImaging Products & Solutions Segment
Digital Imaging Products
Sony IR Day 2014 47
3-6. Strategy III. DSC/CAM Further Premium Shift
ImageCube
“Pocket-sized, pro performance”Premium DSC with 1.0-type Sensor
“Ultra-sensitive artistry”New 1.0-type back-illuminated Sensor
“Wide angle / High resolution”New large aperture lensNew EVF New image processing engine
AX100
PXW-FS7
RX100 (FY2012)
RX100M2 (FY2013)
RX100M3 (FY2014)
Keep competitiveness of premium products by evolving and combining in-house core technologies which realize new photography experiences and customer value
“Your Story. In 4K detail”World’s first 4K Consumer CAMwith 1.0-type Sensor
“Expansion α mount family to professional CAM”
Professional CAM with E-mount Interchangeable lens system
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014 48
3-7. Strategy IV. Application of Camera Technology to B2B Market
Planning to expand B2B camera business by applying our strong core camera technologies cultivated in the competitive consumer camera market
Automotive Camera
Machine Vision Camera
Camera Block for Surveillance Camera
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014 49
3-8. Strategy V. Continuous Improvement in Operational Efficiency
R&D
Production
Sales
Propel camera design platform to realize engineering efficiencies and reinforce our core technologies
“Be Particular” and “Decide Practically”
Lean management of fixed cost to meet tough business conditions
Streamline sales function in accordance with corporate strategy
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014 50
3-9. Summary
-50%
-30%
-10%
10%
30%
50%
70%
90%
110%
130%
150%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
FY14 FY17中期
Aim to sustain highly profitable business by continuously focusing on premium and growing markets while pursuing operational efficiencies
I. Enforcement of “α” Interchangeable Lens Camera (ILC) Business
II. Expansion of “α” Interchangeable Lens Business
III. DSC/CAM Further Premium Shift
IV. Application of Camera Technologies to B2B Market
V. Continuous Improvement inOperational Efficiency
Key Strategies◆Sales Operating Income Margin
FY14(Forecast as of October 2014)
FY17(Target)
Sustainable high profit business
Decline in Shipments
due to Market
Shrinkage
Premium shiftDSC/CAM OthersEnforcement
of “α” Camera Biz.
Expansion of “α”
Lens Biz.
Imaging Products & Solutions SegmentDigital Imaging Products
Sony IR Day 2014 52
4-1. Business Overview
FY2013 Sales by Key Business Areas
Three Core Business Areas
Solutions business aimed toward broadcasters’ and other content creators’ mission-critical tasks (Content Creation)
Projection systems for sophisticated and diversified content (Projector)
Medical products and systems using Sony’s imaging and device technologies for capturing, printing, sharing and presenting images (Medical)
Broadcasters
Film Studios Sports Stadiums
Operating Rooms
Endoscopes Ultrasound RadiationExamination Rooms
Digital Cinemas
Home Theaters
Other
Medical
Projector
ContentCreation
Auditoriums
Classrooms/ Meeting Rooms
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014
CameraSystem
OtherProducts/Systems
53
4-2. Business Overview - Content Creation
Content Creation – business strengths:
Overwhelming trust from customers derived from Sony’s long-term contribution to their mission-critical tasks
Global No. 1 market share in camera system
Japan
UnitedStates
EuropeChina
OtherAreas
FY2013 Sales by Region FY2013 Sales by Key Products / Systems
Global No.1 in Broadcast Cameras and Camcorders
Archive System
Switchers 4K/HD Live Server
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014 54
4-3. Business Overview - Projector
Projector – business strengths:
In-house production of key devices provides us with technological differentiation and high quality
Successful laser light source model that is more advanced than our competitors has allowed us to increase our share in the middle-brightness market
Expansion of market share in high-end home projector with 4K SXRD panel
DigitalCinema
FY2013 Sales by Key Products / Systems Strength of vertical integration
“BrightEra” is the name of our own LCD micro-display device which realizes high picture quality
BusinessProjector
HomeProjector
Phosphor laser light source and 3LCD panel can realize vivid color images
3LCD Laser Light Source Projector
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014 55
4-4. Business Overview - Medical
Medical – business strengths:
Global No. 1 market share in medical printers for endoscope and ultrasound systems
Expansion of medical products other than printersExample: head-mount image processing unit for endoscopic image display
Printer & Media
FY2013 Sales by Key Products / Systems Head-mount image processing unit enables more flexible work styles
Global No. 1 in Medical Printers for endoscope and
ultrasound systemsMonitor,Camera,Recorder
*Please note that although this product has been approved in Japan and EU, its launch in other countries has not yet been confirmed.
Conventional laparoscopic procedure
Laparoscopic procedure using Sony’s head-mounted display
Surgeons’ posture and movement are restricted
Enables surgeons to position themselves flexibly
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014 56
5-1. Mid-term Business Direction
Utilizing the strengths of the three core businesses, we will reinforce the competitiveness and profitability of each business, and contribute to
stable and sustainable profit for Sony’s electronics business
Content Creation
Addressable MarketCAGR 2-3%
Medical
Addressable MarketCAGR 5-7%
Projector
Installation ProjectorsCAGR 11-13%
*1. CAGR: Compound Annual Growth Rate
Forecasted Market Trends by Business Area (CAGR*1 for FY2014-2017)
Source: Sony
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014 57
5-2. Mid-term Business Direction - Content Creation
Maintain competitiveness by offering innovative value in total workflow from acquisition to distribution utilizing the strengths of our camera systems, and respond to customer’s demand for higher resolution and further efficiency
4K for HD solution IP Live Production
Archive System
Create new efficiencies and new business based on customer’s media assets and archives
Media Lifecycle Service
HD Super Zoom
The remote production environment can be easily simplified compared to a conventional system using multiple coaxial cables
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014 58
5-3. Mid-term Business Direction - Projector
Elemental technologies necessary to realize immersive “Kando” experience
Continue to invest in “one and only” differentiated technologies
Propose Sony’s unique visual entertainment experience to the customers
SXRD 3LCD
Laser Light Source
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014
5-4. Mid-term Business Plan - Medical
Offer innovative products and systems for images in medical workflow by optimizing Sony’s imaging and device technologies and resources
Expansion of products for key accounts Distribution of surgery video in hospitals
*product photos are current model.59
Imaging Products & Solutions SegmentProfessional Solutions
Sony IR Day 2014 60
6-1. IP&S Segment: Change in FY2014 Operating Income
FY13 FY14(Forecast as of October 2014)
FY12
26.3
Decrease in sales as a result of the shrinking consumer digital imaging market
1
Improvement in product mix due to a shift to higher-margin products
2
Reduction of sales, engineering, and production costs
3
4
Operating Income
710.0
52.0
Sales
1.4
741.2756.2
Var.
1
Var.
2
Var.
3
Operating income is forecasted to increase as a result of 1. an improvement in the product mix which covered the decline in sales due to the shrinking consumer
digital imaging market, and 2. fixed cost reductions
Positive impact of foreign exchange rates Var.
4
(bln yen)
Imaging Products & Solutions Segment
Sony IR Day 2014 61
6-2. IP&S Segment: Initiatives to Improve Profitability (FY2014 to FY2017)
Although the market size of our existing commoditized businesses is shrinking, we plan to increase operating income through the expansion of new consumer and
professional businesses, in addition to controlled fixed costs
(-) Market contraction in commoditized existing businesses
(+) Expanding new consumer businessesi.e. Interchangeable lens cameras
(+) Reduction in fixed costs through operational efficiency
(+) Growing Medical & Projector businessesExpand customer value in the Contents Creation business through 4K and IP
1
2
3
41.4
26.3
52.0
X.X
3.5%
7.3% 7
FY12 FY13 FY14 FY17(Target)
650~700710.0756.2 741.2
7%~9%
0.2%
1 2 3 4
(Forecast as of October 2014)
OperatingIncome
Sales
OperatingIncomeMargin
(%)
(bln yen)
Imaging Products & Solutions Segment
Sony IR Day 2014 62
7. Summary
Sales 650~700 billion yen
Operating Income Margin 7 % ~ 9 %
FY2017 Financial Targets
IP&S will aim to generate stable profit by promoting technology-driven product development and
establishing new customer segments
Imaging Products & Solutions Segment
Sony IR Day 2014
Home Entertainment & Sound Segment
November 25, 2014
Masashi ImamuraRepresentative Director and President, Sony Visual Products Inc.
Ichiro TakagiSVP, Corporate Executive / President of Video and Sound Business Group
Representative Director and Vice President, Sony Visual Products Inc.
Sony IR Day 2014 64
Agenda Home Entertainment & Sound Segment
Televisions
1. Business Overview
2. Forecasted Market Trends
3. Mid-term Business Direction
Audio and Video
4. Business Overview
5. Forecasted Market Trends
6. Mid-term Business Direction
Home Entertainment & Sound Segment
7. Business Performance
8. Summary
Sony IR Day 2014
Japan
UnitedStates
Europe
China
Asia-Pacific
OtherAreas
4K TV
2K TV
FY2013 Sales by Key Product FY2013 Sales by Region
65
1-1. FY2013 LCD TV Sales Unit / Value Share
Sales754.3bln yen
Sales754.3bln yen
#3 #3
FY2013 LCDTV Value Share by Manufacturer FY2013 LCDTV Unit Share by ManufacturerSource: Sony Source: Sony
Home Entertainment & Sound SegmentTelevisions
Sony IR Day 2014 66
1-2. TV Business Operation Sites
=Transferred site
=D&D, R&D site
=Production, assembly factory
Sony Visual Products Inc.
Malaysia Factory
Brazil Factory
EMS
EMS
Shanghai Factory Aichi Inazawa Factory
Home Entertainment & Sound SegmentTelevisions
Sony IR Day 2014
209,600 199,481 188,701 181,897
16,996 33,621 51,906 67,989
0
50,000
100,000
150,000
200,000
250,000
FY14 FY15 FY16 FY17
4K LCD 2K LCD
67
2-1. Forecasted LCD TV Market Trends
82,348 70,240
59,382 51,412
19,395 29,826
37,823 42,826
0
20,000
40,000
60,000
80,000
100,000
120,000
FY14 FY15 FY16 FY17
4K LCD 2K LCD(Thousand Units)
* CAGR: Compound Annual Growth Rate
* Source: DisplaySearch
(100 mil yen)
8% 14% 22% 27%
Although the market is expected to grow slightly on a unit basis, it is expected to decline on a value basis due to a decline in ASPs.
Even in this environment, the 4K market will grow steadily.
226,596 233,102 240,608 249,886101,743 100,066 97,205 94,238
19%
30%39%
45%
CAGR*3.3%
CAGR-2.5%
Home Entertainment & Sound SegmentTelevisions
Sony IR Day 2014 68
2-2. Forecasted LCD TV Market Trends by Area
48.2 47.9North America
40.0
China
6.0 8.6
JapanFY14 FY17
* Source: DisplaySearch
58.0 62.6Europe
25.7 27.3
Overview by Area (Business Opportunity)
DevelopedMarket
Countries
NA and EU units will remain flat as these markets are mature. Value will decline slightly due to a decrease in prices.
Japan is recovering from the impact of the switch from analog to digital broadcasting. Market is growing on both a unit and value basis, thanks in part to the upcoming Tokyo Olympics.
China
Units will increase slightly but value will decline due to a slow down in the market expansion caused by first time buyers.
EmergingMarket
Countries
Pan-Asia market will grow slightly, especially in India and Vietnam.
LA market is maturing. Units will increase slightly and value will decrease due to a decrease in prices.
FY14 FY17FY14 FY17FY14 FY17
FY14 FY17
Latin America
Developed markets are expected to level out, however emerging markets, especially Pan-Asia, are expected to grow steadily.
48.763.0
FY14 FY17
Pan-AsiaME&A
40.6
-0.5%+8%
+1.4%
+43%
+6%+29%
(Million Units)
Home Entertainment & Sound SegmentTelevisions
Sony IR Day 2014
(1) Differentiation by enhancing basic functions
(2) Selection and concentration of where to use resources
→Profitable business structure even if sales fall by 20~30%
69
3-1. Mid-term Business Direction
Establish a stable, profitable business by differentiating our products and selecting and concentrating where we use our resources
~FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
OP-25.7
Breakeven(waypoint)
OP-69.6
OP-147.5*
<bln yen>
Establish “Stable Profitable Business”TV Turnaround
Plan
(1) Move away from structure which was based on growth- remove waste and inefficiencies - transform organization, reduce fixed costs - improve quality, closely control inventory,
reduce idle factory spaces
(2) Reduce panel costs- cancellation of S-LCD joint venture
(3) Enhance product competitiveness
Get ticket to enter business
▲Current position
* A 60 billion yen loss related to the sale of Sony’s shares of S-LCD is not included.
Home Entertainment & Sound SegmentTelevisions
Sony IR Day 2014
■ Enhance basic functions: Fascinating products that meet our customers’ needs
1) Enhance essential values: picture quality, cosmetic design, ease of use
2) Combine our differentiated technologies and industry standard technologies
- Differentiated technologies: back lights + signal processing
- Commoditized panels
- Utilization of the Android Platform
70
3-2. Mid-term Business Direction
Establish a stable, profitable business by differentiating our products, and selecting and concentrating where we use our resources
Home Entertainment & Sound SegmentTelevisions
Sony IR Day 2014
1) Accelerated decision-making after splitting out the TV Business
2) Reduction of product line-up - 30% reduction from FY2014 to FY2017
3) Clear focus on sales strategy by area - US: Shop in shop - EU: Build up shop front (as an interface to our customers)
4) Further improvement in design efficiency and low cost operations by global mother factory in Malaysia
5) Reduction of headquarter costs and fixed sales cost
■ Selection and concentration Profitable business structure even if sales fall by 20~30%
71
3-3. Mid-term Business Direction
Establish a stable, profitable business by differentiating our products, and selecting and concentrating where we use our resources
Home Entertainment & Sound SegmentTelevisions
Sony IR Day 2014
Audio Growing Category
Audio Others
Video
Others
Sales431.5bln yen
Japan
United States
Europe
China
Asia-Pacific
Other Areas
72
Sales431.5bln yen
Sound Bars
Wireless Speakers
Headphones
Home Video
WALKMAN
System Stereos Amplifiers
*1:”Audio Growing Category” includes Sound Bar, Wireless Speaker and Headphone as its main products.
*1
4-1. FY2013 Business Overview
FY2013 Sales by Key Product FY2013 Sales by Region
Home Entertainment & Sound SegmentAudio & Video
*2: Sales are based on the organizational structure as of October 2014, which includes a transferred business.
Sony IR Day 2014
4-2. Key Products’ Market Share
Headphones
Digital Music Players (WALKMAN)
Wireless Speakers
*1
Sound Bars
*2
#1 in Japan
1位
73
Home Video (Blu-ray Recorders)
#2 since October 2014#1 (latest) as of November 2014*Source: Sony
*1: EU5: UK, France, Germany, Italy, Spain
*2: EU3: UK, France, Germany
#2※ Japan / US /
EU5
#1※ Japan
#3※ Japan / US /
EU3
#3※ Japan
#2※ Japan
(Value basis)
Home Entertainment & Sound SegmentAudio & Video
Sony IR Day 2014 74
4-3. Audio & Video Business Operation Sites
R&D / Design base sites are located in Tokyo (Osaki).Malaysia and Thailand manufacturing sites
also have some design functions.Brazil factory performs local manufacturing.
=R&D / Design site
=Manufacturing factory
Sony City Osaki
Brazil Factory
Malaysia Factory
Thailand Factory
Home Entertainment & Sound SegmentAudio & Video
Sony IR Day 2014
0
500
1,000
1,500
2,000
2,500
FY14 FY15 FY16 FY17
75
5. Forecasted Market Trends by Product
Product Outlook
Business Opportunity
Home Video
Deliver brand-new audio & visual experiences through improved basic functions and linkage with mobile devices.
Go after remaining players’ profit through efficiency in design & operations.
Audio,Others
Utilize current technology and know-how to respond to changes in the market or customers and expand peripherals.
AudioGrowingCategory
(Headphones,Sound Bars,
Wireless Speakers)
Deliver high-res products with Sony’s original sound technology to meet the growing demand for high quality sound and offer new exciting sound experiences more easily.
(bln yen)
-19%
-17%
11%
-15%
-12%
6%
-15%
-10%
4%
By FY2017, the audio growing category (Headphones, Sound Bars, and Wireless Speakers) will expand to almost 50% of the market, while the Home
Video portion of the market will shrink.
* Source:Sony
CAGR -5%
(Value basis)
Home Entertainment & Sound SegmentAudio & Video
Sony IR Day 2014 76
Strategy Ⅰ: Deliver the best sound and picture to customers throughhigh value-added products with high-res technology.
Strategy Ⅱ: Strengthen design and operational efficiencies.
Increase sales and profit through high value-added products in the audio growing category (Headphones, Sound Bars, and Wireless Speakers) positioning high-res as our core technology.
Improve profitability by reviewing regional strategy to meet market and competition changes.
Establish firmly profitable structure without relying on sales growth
Strategy Ⅲ: Enhance brand with the best sound & the best picture.
Save fixed costs and loss costs through strong operational ties between design and manufacturing which is led by key factories.
With high-resolution products, raise Sony brand awareness as high-quality sound and picture brand.
6-1. Mid-term Business Direction Home Entertainment & Sound SegmentAudio & Video
Sony IR Day 2014 77
Aim to improve profitability through an expansion of our high-res product portfolio
6-2. Mid-term Business Direction
Expand SONY’s audio products in living roomby its original high-res experience
Home Entertainment & Sound SegmentAudio & Video
Sony IR Day 2014
Improvement in model mix, cost reductionSignificant improvement through an increase in high value-added models, and a reduction in material costs
1
78
FY13 FY14FY12
-21.0Reductions in sales company costs2
Increase in design & manufacturing costs4
Negative impact of foreign exchange rates3
13.4
-82.2
1 2 3 4
Significant improvement due to an increase in high value-added models, and a reduction in cost
7-1. HE&S Segment: Change in FY2014 Operating Income Home Entertainment & Sound Segment
Sales 1,016.8 1,199.3 1,230.0
OperatingIncome
*The figures for sales and operating income are based on the organizational structure as of October 2014, which includes a transferred business.
(Forecast as of October 2014)
(bln yen)
Sony IR Day 2014 79
Operating IncomeMargin
Improvement in profitability through product differentiation by enhancing basic functions
1
Fixed cost reductions realized by selecting and concentrating where to utilize our resources
2
Televisionsング
Increase in sales and operating income due to the introduction of premium products such as high-res
1
Fixed cost reductions through efficiencies in design and manufacturing.
2
Audio & Videoプロフェッショナル・ソリューション]
7-2. HE&S Segment: Initiatives to Improve Profitability (FY2014 to FY2017) Home Entertainment & Sound Segment
Sales 1,016.8 1,199.3 1,230.01,000
~1,100
Target a 2~4% operating margin by improving product margins through stronger products and fixed costs reductions.
-82.2
-21.0
13.4
FY12 FY13 FY14 FY17
2~4%
1.1%
-2%
-8%
(bln yen)
(Forecast as of October 2014)
(Target)
*The figures for sales and operating income are based on the organizational structure as of October 2014, which includes a transferred business.
Sony IR Day 2014 80
8. Summary
Target a 2~4% operating margin by improving product margins through stronger products and fixed costs reductions.
Home Entertainment & Sound Segment
FY2017 Financial Targets
Sales 1,000~1,100 billion yen
Operating Income Margin 2~4 %
*The figures for sales and operating income are based on the organizational structure as of October 2014, which includes a transferred business.
Sony IR Day 2014
Devices Segment
November 25, 2014
Tomoyuki Suzuki
EVP, Corporate Executive OfficerPresident of Device Solutions Business Group
Sony Corporation
Sony IR Day 2014
Devices Segment
1. Business Overview
2. Mid-term Business Direction
3. Summary
82
Agenda Devices Segment
1 Business policy2 Image Sensor3 Energy
Sony Corporation Investor Relations 83Sony IR Day 2014
FY2013 Sales by Key Products
Devices Segment
Image Sensor
Energy
Storage Media
LSI
Sales
742.3bln yen
★
★
CameraModule
Image SensorMobile, Security cameras, DSLR/DSC320.0
Camera Module Mobile50.0
Energy Polymer, Cylindrical,ESS (Energy Storage)140.0
LSI LSI for Game, Laser, RF SW120.0
Storage Media Tape, Memory, Disk90.0
[Category] [Sales (bln yen)] [Product/Application]Others
* The figures for sales and operating income are based on the organizational structure as of October 2014, which excludes a transferred business.
FY2013 Business Overview
43%18%
83
Sony Corporation Investor Relations 84Sony IR Day 2014
Devices Segment
Sales & Operating income (bln yen)
27.0
63.0
-16.9
Image Sensor
Energy
Camera Module
Others
FY14October Forecast
FY13Actual
820.0860.0
742.3
Operating incomeSales Operating
incomeSalesOperating
incomeSales
FY14May Forecast
+36.0
+79.9
Sales increased by 16%, OP increased by 79.9 bln yen
◆Changes from May forecast
◆Changes from previous year
Favorable exchange ratesRobust smartphone market conditions (Image Sensor/Energy)Strong demand for power tools (Energy)Profit improvement in image sensors
+117.7
Robust smartphone market conditions (Image Sensor/Energy)Strong demand for power tools (Energy)Profit improvement in image sensorsSales decrease in System LSIs due to the shift from PS3 to PS4Recording impairment loss for Energy’s long-lived assets in FY13
+40.0
Sales increase by 5%, OP increase by 36.0 bln yen
* The figures for sales and operating income are based on the organizational structure as of October 2014, which excludes a transferred business.
FY2014 Business Overview
84*Operating loss in FY13 includes a 32.1 billion yen impairment charge related to long-lived assets in the energy business.
Sony IR Day 2014
Strengthen profitability
Always be the first in the market
■“Technological differentiation” and advantage-Exceed competitors by strengthening our devicecompetitiveness
-Always be the first to introduce products by advancing technologies and developing cutting-edge technologies
Direction Strategy
Be the source of Sony’s end products’ competitiveness
■“Device innovation”-Increase customer value with system solutions-Strengthen ties with customers and strategic partnership
Mid-term Business Direction Devices Segment
■“Selection and concentration” of business-Concentrate resources to main business areas -Strengthen profitability in mature business areas
■Healthy asset management/Advance investment for future business
85
Sony IR Day 2014
Product Lifecycle Devices Segment
DSBGStrategy
Development Strengthen Reconstruct Terminate
Business Area
Life Space UXWearableAutomotive SystemMedicalARAM system
Image SensorCamera ModuleEnergy
TunerMMICSXRD/HTPSStorage Media
Game/TV LSIConventional-LaserOptical Pickup
DecliningMaturingDevelopmentMarket Introduction
Concentration ProfitabilityAdvanced Investment
86
Sony IR Day 2014
FY2017 Business Portfolio Devices Segment
FY2017 Sales by Key Products
Expand sales by differentiating technologies in Image Sensors (incl. Camera Module) and Energy
FY2013 Sales by Key Products
Image Sensor
Energy
Storage Media
LSICameraModule
Sales
bln yen742.3
Sales1,300~1,500bln yen
Others
Others
18%
Energy
Storage Media
LSI
Camera Module
New Biz
15%
Image Sensor
* The figures for sales and operating income are based on the organizational structure as of October 2014, which excludes a transferred business.
47% of sales 63% of
sales
87
Sony IR Day 2014-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CategoryMarket volume as of FY17
CAGR FY13-FY17Sony Share as of FY17
Marketvolume
size
Sony Share (units)
-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CAGR55%
FY13→FY17
Compact DSCFY13 FY1751 →13mil.pcs
Smartphone(Main)FY13 FY171,061→1,607mil.pcs
AutomotiveFY13 FY1736 →87mil.pcs
TabletFY13 FY17409→567mil.pcs
ILCFY13 FY1718 →10mil.pcs
CCTV SecurityFY13 FY1797 → 79mil.pcs
IP SecurityFY13 FY1713 →97mil.pcs
Concentrate on expanding market for mobile, IP Security cameras and automotive
Image Sensor Market Overview Devices Segment
CAGR(Units: FY13→FY17)
88*Compact DSC: Compact Digital Still Camera, ILC: Interchangeable Lens Camera, CAGR: Compound Average Growth Rate
Sony IR Day 2014-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CategoryMarket volume as of FY17
CAGR FY13-FY17Sony Share as of FY17
Marketvolume
size
Sony Share (units)
-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CAGR55%
FY13→FY17
Compact DSCFY13 FY1751 →13mil.pcs
Smartphone(Main)FY13 FY171,061→1,607mil.pcs
AutomotiveFY13 FY1736 →87mil.pcs
TabletFY13 FY17409→567mil.pcs
ILCFY13 FY1718 →10mil.pcs
CCTV SecurityFY13 FY1797 → 79mil.pcs
IP SecurityFY13 FY1713 →97mil.pcs
Concentrate on expanding market for mobile, IP Security cameras and automotive
Image Sensor Market Overview Devices Segment
CAGR(Units: FY13→FY17)
89*Compact DSC: Compact Digital Still Camera, ILC: Interchangeable Lens Camera, CAGR: Compound Average Growth Rate
<<Winning strategy>>
・Strengthen Imaging
・Evolve to Sensing
Sony IR Day 2014-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CategoryMarket volume as of FY17
CAGR FY13-FY17Sony Share as of FY17
Marketvolume
size
Sony Share (units)
-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CAGR55%
FY13→FY17
Compact DSCFY13 FY1751 →13mil.pcs
Smartphone(Main)FY13 FY171,061→1,607mil.pcs
AutomotiveFY13 FY1736 →87mil.pcs
TabletFY13 FY17409→567mil.pcs
ILCFY13 FY1718 →10mil.pcs
CCTV SecurityFY13 FY1797 → 79mil.pcs
IP SecurityFY13 FY1713 →97mil.pcs
Concentrate on expanding market for mobile, IP Security cameras and automotive
Image Sensor Market Overview Devices Segment
CAGR(Units: FY13→FY17)
90*Compact DSC: Compact Digital Still Camera, ILC: Interchangeable Lens Camera, CAGR: Compound Average Growth Rate
<<Winning strategy>>
・Strengthen Imaging
・Evolve to Sensing
Sony Corporation Investor Relations 91Sony IR Day 2014
8.9MP Super 35mm CMOS Image SensorInstallation of a global shutter allowing clear images without motion skew and other rolling shutter distortions
12.2MP 35mm Full Size CMOS Image SensorWide pixel pitch delivers about 3 times sensitivity, about 2.3 timessignal saturation and phenomenal sensitivity up to ISO 409600
Apply phase- and contrast-detection autofocus179 phase detection points phase-detection AF sensor canshoot in 0.06 seconds: the world’s fastest autofocus
α6000
In spite of Compact DSC size20.2MP 1” CMOS Image Sensor
Strengthen Imaging : “New imaging world” realized by Sony’s cameras Devices Segment
91
Sony IR Day 2014 92
Limits of sensitivity
Limits of dynamic range
Limits of speed
Limits of distance
Limits of viewing field
Devices SegmentStrengthen Imaging : Exceed the limits of the human eye
Sony IR Day 2014
Able to switch to 1000fps whenever recording moving images
Devices SegmentStrengthen Imaging : “1msec world”
93
Sony IR Day 2014-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CategoryMarket volume as of FY17
CAGR FY13-FY17Sony Share as of FY17
Marketvolume
size
Sony Share (units)
-20%
0%
20%
40%
60%
80%
100%
-40% -30% -20% -10% 0% 10% 20% 30% 40%
CAGR55%
FY13→FY17
Compact DSCFY13 FY1751 →13mil.pcs
Smartphone(Main)FY13 FY171,061→1,607mil.pcs
AutomotiveFY13 FY1736 →87mil.pcs
TabletFY13 FY17409→567mil.pcs
ILCFY13 FY1718 →10mil.pcs
CCTV SecurityFY13 FY1797 → 79mil.pcs
IP SecurityFY13 FY1713 →97mil.pcs
Concentrate on expanding market for mobile, IP Security cameras and automotive
Image Sensor Market Overview Devices Segment
CAGR(Units: FY13→FY17)
94*Compact DSC: Compact Digital Still Camera, ILC: Interchangeable Lens Camera, CAGR: Compound Average Growth Rate
<<Winning strategy>>
・Strengthen Imaging
・Evolve to Sensing
Sony Corporation Investor Relations 95Sony IR Day 2014
■Realize imaging quality/function/usability with technologies in high-end DSC
■Improve video functions■Thinner
Drive development in wearable products
Further improve the value of smartphoneNo.1 share in smartphone marketImage Sensor technologies
Improve automotive safety
Devices Segment
1
Front CameraCrash prevention
Driver monitorSight Tracking
High beam ControlEnsure viewing field
Back mirror CameraGlare-proof
Side ViewSwitch to side mirror
Su
rrou
nd
View
Parkin
g A
ssist
Rear/Surround ViewParking Assist
Evolve to Sensing : Entry into automotive & wearable world based on strengthening imaging technologies
95
Sony Corporation Investor Relations 96Sony IR Day 2014
System
+
System SolutionCamera Module
Image Sensor
Assembly technologies Information system technologies
Camera signal-processing technologies
Column-parallel ADCBack-illuminated
structureStacked structure
Dual Cameras
Compact/Thinness
Embedded
Technologies
Target
High speed(Low power consumption)
High sensitivity
High resolution Depth Sensing
Extraction
Recognition
Z1 6.321 mm Z3 5.632 mm
Super high resolution
11% thinner
Smile ShutterPS4 Face log-in
6 axis correction
Devices Segment
Degree of eye opening & Closing
Shape of outer eye area
Shape of wrinkle
Degree of mouth opening
Shape of corners of the mouth
Evolve to Sensing : Meet customer needs by Module & System Solution
96
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System
+
System SolutionCamera Module
Image Sensor
Assembly technologies Information system technologies
Camera signal-processing technologies
Column-Parallel ADCBack-illuminated
structureStacked structure
Dual cameras
Compact/Thinness
Embedded
Target
Depth Sensing
Extraction
Recognition
Devices Segment
Technologies
High speed(Low power consumption)
High sensitivity
High resolution
Smile ShutterPS4 Face log-in
Evolve to Sensing : Meet customer needs by Module & System Solution
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Recognition/Distance High-speed processing
High-speed readout and processing realized by high-performance image sensors and back-illuminated structure
Extraction
Able to capture clear images even in bad weather
Able to capture fast-moving subjectsAble to accurately calculate distances quickly
Images that surpass the limits of the human eye are delivered by system LSIs cultivated in TV image processing
Devices Segment
Under study for LIDAR using SWIR Backlight correction
Defog
Source: Ishikawa Watanabe Laboratory, The University of Tokyo
Diffusion
IM
SWIRPulseLaser
Filter
Evolve to Sensing : New functions delivered by system solutions
Recognition/Distance realized by the combination of dual cameras and signal processors
Sony IR Day 2014
FY13 FY14 FY17
Mobile
Sales target by category
+118%
Mobile
Non-Mobile
Includes camera module
Non-Mobile
Main business for further added value
Smartphone
TabletApplication:
Base business for utilizing technological advantage
DSC/CAM/DSLRProfessional CameraSecurity Camera
New Business
New Business
MedicalAutomotive
Business for meeting customer needs by System Solution
-9%
Devices Segment
Application:
Application:
Business Scenario by Category
Scenario: Entry into Chinese smartphone makers+52%
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Image Sensor Wafer Production Capacity
50
25
60
Proactively execute domestic investment
Nagasaki TEC Kumamoto TEC
<Recent investment> (bln yen)
・Press Release in Sep 2010, Kumamoto TEC approx. 40・Press Release in Dec 2010, Nagasaki TEC approx. 100・Press Release in Jun 2012, Nagasaki TEC approx. 80・Press Release in Jan 2014, Yamagata TEC approx. 35・Press Release in July 2014, Nagasaki/Kumamoto TEC approx. 35
75
Yamagata TECDec.2010
Mar.2012
Nov.2014
2015~2016
Studying further capacity increase
(300mm wafer basis; unit: 1,000 wafers/month)
Devices Segment
Sony IR Day 2014
FY13 FY14 FY17
AV/IT
Non-AV/IT
Branded business
Sales target by category
+25%
+60%
+10%
For AV/IT Linked with Sony’s core business by utilizing
gel polymer batteries
For Non-AV/ITQWEE566
New market creation by Olivine-type batteries
Branded batteries
Stable business with Sony brand & battery technology
Devices Segment
SmartphoneWearable
Application:
Scenario: Entry into major smartphone makersEntry into Chinese smartphone makers
Power toolESS (Energy Storage system)Automotive
Application:
Scenario: Entry into Megawatt level large-sized ESS Establishment of JV with Hydro-Québec
No.1 in quality in the industry
Business scenario utilizing technology differentiation
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Devices Segment
More stable structure of gel polymer compared with competitors’ electrolyte
Gel electrolyte keep steam pressure low even if the temperature rise
Low swelling ratio
Gel electrolyte
electrolyte
Gel electrolyte is flame-retardant
Material development +Basic research
Product design
Koriyama plantAtsugi TEC
Higher energy density Long life High safety
Realize higher energy density by Sony’s unique gel polymer(gel electrolyte) structure
Company 1
En
erg
y D
ensi
ty
FY2010 FY2012 FY2014FY2005 FY2017Company 2 Sony
For AV/IT Winning Strategy by Sony Gel Polymer Batteries
Period reported at the Energy business meeting held on Apr. 2014
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Li
Fe
P
O
Structure of cathode
highly bound Non-oxide type electrode materials (lithium iron phosphate)
Very safe due to no oxygendissociative adsorptionLong life due to stable structure
charging status FullEmpty
powe
r voltage
discharge characteristic
Capture stable electricity even when charging
Charging time
lithium iron phosphate
Other electrode materials
Pow
er current
Pow
er current
charge characteristics
Realize high speed chargingby high-power charging =high affinity to wind powerand solar power
Devices SegmentFor Non-AV/IT Winning Strategy by Olivine-type batteries
Stable structure=Safety+Long life
Stable discharge characteristics=large-scale system
Quick charge
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Sony IR Day 2014
Sales 1,300~1,500 billion yen
Operating Income Margin 10 % ~12 %
FY2017 Financial Targets
Summary Devices Segment
◆Image Sensors: Focus on wearables and automotive in addition to smartphones
◆Energy: Focus on smartphones/wearables, power tools and ESS
Trend from FY2012
△ 4.0
1.0
6.0
11.0
16.0
△ 400.0
600.0
1600.07%
9%~11%
742.3752.7 860.0 1,300~1,500 bln yen
FY14 FY17FY13*FY12
37.2 -16.963.0Operating
Income
Operating Income margin
Sales
5%
10%~12%
-2%
*Operating loss in FY13 includes a 32.1 billion yen impairment charge related to long-lived assets in the energy business.*The figures for sales and operating income are based on the organizational structure as of October 2014, which excludes a transferred business.
(Forecast as of October 2014)
104
(Target)
Sony Corporation Investor Relations
Cautionary Statement
105
Statements made in this presentation with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-lookingstatements 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 adiscussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materialsreleased to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautionsinvestors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and thereforeinvestors 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 resultof 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 environment in which Sony operates and the economic conditions in Sony’s markets, particularly levels of consumer spending;( i i ) 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;(i i i) 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 televisions, game
platforms and smartphones, 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 consumer 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 conditions;(vi ) Sony’s ability to implement successful hardware, software, and content integration strategies for all segments excluding the Financial Services segment, and to develop and
implement successful sales and distribution strategies in light of the Internet and other technological developments;(vii) 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);(viii) Sony’s ability to maintain product quality;( ix) 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;( x ) significant volatility and disruption in the global financial markets or a ratings downgrade;(x i ) Sony’s ability to forecast demands, manage timely procurement and control inventories;(xii) the outcome of pending and/or future legal and/or regulatory proceedings;(xiii) 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;(xiv) the impact of 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; and(xv) risks related to catastrophic disasters or similar events.Risks and uncertainties also include the impact of any future events with material adverse impact.
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Names of Sony products and services are the registered trademarks and/or trademarks of Sony Corporation or its Group companies.
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