Electronics Products & Solutions Segment

Senior Executive Vice PresidentOfficer in charge of Electronics Products & Solutions Business

Sony Corporation

Representative Director and President Sony Imaging Products & Solutions Inc.

Electronics Products & Solutions Segment

Shigeki Ishizuka

Sony Corporation

Officer in charge of Electronics Products & Solutions Business

Shigeki IshizukaSenior Executive Vice President

Deputy Officer in charge ofElectronics Products & Solutions Business

Ichiro TakagiSenior Executive Vice President

EP&S Organization Electronics Products & Solutions Segment

Imaging Products &Solutions Business

Digital Imaging Professional Medical

Mobile Communication Business

Smart Phone Internet Service

Home Entertainment & Sound Business

Audio / VideoTV

Sales & Marketing Platform

Manufacturing / Logistics / Procurement / Engineering Platform

Sony Corporation

EP&S Basic Policy Electronics Products & Solutions Segment

• Maintain financial discipline and accountability in each business• Create new customer value that exceeds the confines of each business by leveraging technology

• Maximize growth and eradicate opportunity loss through operational efficiency• Nurture next generation talent and deploy personnel across business units

EP&S

HE&S IP&S MCDIEstablish top brand position in overall camera marketMaintain No.1 position in mirrorless on a revenue basis

Professional SolutionExpand the B2B solution business by leveraging EP&S products

MedicalAim to expand the business overthe mid to long term

Smartphone Become profitable in FY2020• Reduce OPEX by completing transformation in FY2019

• Strengthen product appeal by leveraging leading technology from the Sony Group

TVMaintain a stable business foundation based on large panel premium product strategy

V&SConsistently grow sales and profits through greater product and technology competitiveness in growth categories

Internet Service / IoTStrengthen recurring services

Sony Corporation

EP&S Business Foundation Electronics Products & Solutions Segment

① Sony Brand（B2B&C）

➂ Differentiationby Technology

② Real-Time Benefit

④ Strengthen Solution Business

Customer ValueBusiness Foundation (Key Strategies)

① Sony Brand（B2B&C)Strengthen products & services under the Sonybrand

---------------------------------------------

② Customer Real-Time BenefitCreate customer value with “time”

➂ Differentiation by TechnologyIn-house technology“Light to Display/Sound/Communication”

④ Strengthen Solutions BusinessSony Network Communication,Professional Product Solution Group

Sony Corporation


Home Entertainment & Sound Business(HE&S)

Sony Corporation

Electronics Products & Solutions SegmentTV Business

Immersive Picture Quality Regardless of Panel Source

OLED

Z9G series

A9G series

High Quality SoundThat is Part of Visuals Immersive and Realistic

Easy Hands-Free OperationFor both Broadcast and Internet

For LCD modelsFor OLED models

Maintain Stable Business Foundation Based on Large Panel Premium Product Strategy

Further Evolution of End-to-End Supply Chain Managementfrom Procurement to Manufacturing to Sales

Sony Corporation

Electronics Products & Solutions SegmentVideo & Sound Business

Strengthen Premium Products

■Best-in-Class Noise Cancelling Headphone (1000X series)

■Premium Home Speaker

Sony’s leading spatial sound technology createsthe New Experience of Being Engulfed by Sound

Pursue partnerships with studios, labels and content providers

Launch of 360 Reality Audio(Evolution of Sound Technology)

Feel the sound coming from all around

WH-1000XM3 WI-1000X WF-1000X

HT-Z9F

Audio market 10% annual growth, lead by the headphone market

*: Source: Sony

(*)

Consistently Grow Sales and Profits Through Greater Product and Technology Competitiveness in Growth Categories

Sony Corporation


Imaging Products & Solutions Business(IP&S)

Sony Corporation

Digital Imaging Business

Establish top brand position in overall camera marketMaintain No.1 position in mirrorless on amount basis

SpeedBasic Resolution

Mount1

Full-size APS-CSEL24F14GMCamera Grand Prix 2019 Lens Awards


Technology that supports new standard for mirrorless

Full-size×APS-Cseamless

compatibility

Fundamental lens launched

and further expansion

Speed Imagequality

Stamina Compact design

Lens

The Five Fundamentals

Sony Corporation

Medical Business

Aim to expand the business over the mid to long term

Launched in 2018Cell SorterMA900

Disposable Sorting Chip

Launched in 20174K/3D Video

Microscope System

Launched in 20154K Surgical

Endoscopy System

Acquired in 2016Operating Room

SolutioneSATURNUS

Turn positive in FY18

Life ScienceSurgical ImagingBusiness expansion in the 4K & operating room solutions space


Expand lineup and increase recurring business CAGR 10%+

Contributing to the Medical Field with Imaging Technology

(*)

* Since FY2013

Sony Corporation


Mobile Communication Business(MC)

Sony Corporation

Electronics Products & Solutions SegmentSmartphone Business Transformation

Non-Focus and Defocused Regions Reviewed Sales, Engineering and Manufacturing

Focus Regions(Japan, Europe, Taiwan, Hong Kong)

No Operator Businesses

UK (European Business Sales)• Merged sales & marketing functions with Sony Europe

Japan (Headquarters)• Reduced outsourced design

• Transferred corporate functions to Sony

Sweden (Engineering)• Reduced focus on mobile

• Shifted R&D focus to communication technology and new businesses

Withdrew from certain Regions and Conducted Sales, Engineering and Manufacturing Review

China (Factory)• Ceased Production

Sony Corporation


Operating Loss

Profit Margin

One time transformation cost44 billion yen

Impairment

Other CostAfter service / Patentetc

OPEX

※vs FY2017 Actual

Overall Cost

▲57%▲34%

▲31%

Smartphone Business Transformation

Complete Structural Reforms in FY2019Reduce OPEX by 50% and Overall Cost by 57% in FY2020

FY2017 Actual FY2019 PlanFY2018 Actual FY2020 Plan

▲50%

Sony Corporation


Professional Monitor-Level Picture Reproduction

・4K OLED・BT2020 color space・10-bit HDR

High Quality Picture Technology from BRAVIA

・X1 for mobile engine・HDR remaster

Supervised by Sony Pictures Mixer for 3D Sound Design

・Dolby Atmos

21:9 Wide Screen Format for Mobile Gaming

VENICE Cinematography experience with “Cinema Pro”

・Adopted VENICE color Look

Powered by

Image Processing Algorithm from α series

・AF/AE following 10fpsburst mode・Eye AF

Smartphone Business Competitive Products2019 Flagship Model

Leveraging Leading Technology from the Sony Group

Immersive gamingin 21:9 format such as ・Fortnite・Asfalt 9・Arena of valor

Sony Corporation


Solution Business

Sony Corporation

New Visual Experience with Large Displays, from Consumer to B2B

Electronics Products & Solutions SegmentCreate new customer value that exceeds the confines of each business (B2B&C)

②Personal Entertainment SolutionMerge Sound and Communication Technologies to Create New Value

①Large Display Solution

Sony Corporation


③5G Solution

User device

Live content transmission with 5G (wide bandwidth /

low latency)

Real-time viewing and listening to content taken from multiple cameras

Immersive Audio

“Crystal LED“Public Viewing

Operator Cloud/Multi-access Edge Computing

Remote Production

Live Streaming

Create new customer value that exceeds the confines of each business (B2B&C)

Pursuing Real-Time Benefit in Various Applications

Applicable to sport, music live, movie, news distribution etc.

Capture Create Listen / ExperienceLow cost, live content creation solution with 5G (MEC / low latency)

Sony Corporation


Shooting system includes multiple cinema cameras from SIPS to create high quality VR content

Provide highly immersive virtual experience of being in the same space as the artist

(c)2018 U3MUSIC/Sony Music Entertainment (Japan) Inc. (c)2018 Sony Interactive Entertainment Inc.

Hikaru Utada Laughter in the Dark Tour 2018 ‐ “Hikari”＆“Chikai” ‐ VR

Site operation and post-production which leverages the Sony Group’s content creation know-how

Create new customer value that exceeds the confines of each business (B2B&C)④xR SolutionCreate New Visual Experiences and VR Content by Leveraging the Sony Group’s Strength

Provide Highly immersive VR content and solutions

Applicable to sport and various live events as well as music

Create New Value, Connect Creators and UsersThrough the Power of Technology

Sony Corporation


Sony Corporation

FY2018 Review ‒ HE&S Electronics Products & Solutions Segment

Operating Income

Sales 1,222.785.8 89.7+3.8

1,155.4(bln yen)

Positive Factor1. Improvement in the product mix reflecting a shift to high value-added models

Negative Factors2. Price decline

3. Negative impact of foreign exchange rate

4. Decrease in sales

5. Increase in OPEX (research and development expenses for competitive products)

1

23

4 5

FY17 FY18

FY2018 Operating Income (vs FY2017)

Sony Corporation

FY2018 Review ‒ IP&S Electronics Products & Solutions Segment

OperatingIncome

Sales 655.974.9 84.0+9.1

670.5(bln yen)

Positive Factors1. Improvement in the product mix reflecting a shift to high value-added models

2. Improvement in OPEX

Negative Factors3. Negative impact of foreign exchange rate

4. Decrease in sales


FY17 FY18

12 3

4

Sony Corporation

FY2018 Review ‒ MC Electronics Products & Solutions Segment

OperatingIncome

Sales 723.7-27.6 -97.1-69.5

498.0(bln yen）

Negative Factors1. Decrease in smartphone unit sales

2. Increase in expense primarily for the write-down of excess inventory due to regional withdraw and clearing market inventory

3. Increase in restructuring charges

Positive Factors4. Reduction in operating costs

5. Decrease in the impairment charge recorded against long-lived assets

FY2018 Operating Income (vs FY2017）

FY17 FY18

12 3 4

5

Sony Corporation

FY2019 Forecast ‒EP&S Electronics Products & Solutions Segment

Operating Income

Sales 2,320.676.5 121+44.5

2,240（bln yen）

Positive Factors1. Improvement in the product mix reflecting a shift to high value-added models in TV and DI Business

2. Improvement in OPEX in MC Business

Negative Factors3. Decrease in sales

4. Negative impact of foreign exchange rate


FY18 FY19April forecast

1

2 34

Sony Corporation

TV Business: FY2018 Sales by Product Type & Region / Unit and Revenue ShareElectronics Products & Solutions Segment

4K TVs2K TVs

Sales by Product Type Sales by Region

Japan

U.S.

EuropeChina

Asia Pacific

Other

Sales791.8bln yen

1位#5 #3

LCD TV Unite Share by Manufacturer LCD TV Revenue Share by Manufacturer

(Source: Sony / For the most recent year） (Source: Sony / For the most recent year）

Sales791.8bln yen

China

Sony Corporation

Audio Growth Category

Audio Others

Video

Other

Sales by Product Type

Sales363.6 bln yen

Japan

U.S.

Europe

China

Asia Pacific

Other

Sales by Region

Video & Sound Business: FY2018 Sales by Product Type & Region

Sales363.6bln yen

Sound Bars

Headphones

System Stereos

*1


Home Video

＊1：”Audio Growth Category” includes Headphones, Sound Bars and Wireless Speakers as its main products.

Wireless Speakers

Digital Music Players WALKMAN

Audio Components

Sony Corporation

IP&S Sales by Business Category and Geographic Area

FY2018 Sales by Business Category

Sales670bln yen

FY2018 Sales by Geographic Area

Sales670bln yen

Still and Video Camera

Other

Digital Imaging

Professional

Medical


Japan

Other

North America

Europe

China

Asia

Sony Corporation

ILC (Incl. Lens)：23％（#2）（#1 in Mirrorless Camera）

DSC ：29％（#1）(#1 in Premium DSC）

IP&S Key Product Market Share (Revenue Basis)

Sony24%

FY2018 Still Camera Market FY2018 Video Camera MarketMarket Size: 1,300 bln yen Market Size: 300 bln yen

*1 Premium DSC = DSC with large (1/1.7 inch and over) image sensors or high zoom (20X and over)

(Source : Sony)

Components of Video Camera Pie ChartVideo cameras for consumer (POV + Conventional)

Video cameras for business (Pro-sumer + Professional)


Sony29%

Sony Corporation

Documents

Electronics Products & Solutions Segment