Sony IR Day 2019 › SonyInfo › IR › library › presen › ... · Sales & 8,544.0 8,665.7 operating revenue FY2017 FY2018 4 Operating income 734.9 894.2 Net income attributable

May 21st, 2019

Sony Corporation

Sony IR Day 2019

Sony Corporation

Opening Remarks 3

Game & Network Services 11

Music (SME) 46(Sony/ATV) 65(SMEJ) 82

Pictures 90

Electronics Products & Solutions 114

Semiconductors 1422

Hiroki Totoki

Senior Executive Vice President, CFOSony Corporation

Opening Remarks

Sony Corporation

FY2018 Consolidated Results

8,544.0 8,665.7Sales & operating revenue

FY2017 FY2018

4

734.9 894.2Operating income

490.8 916.3Net income attributable to Sony Corporation’s stockholders

770.6 753.4Operating Cash Flow*

（bln yen)

* Sony Group consolidated without Financial Services Segment

Sony Corporation

Improvement in Financial Position

34.7% 40.3%Equity Ratio *

482.9 bln yen 397.7 bln yenNet CashPosition* **

As of the end ofFY2017

As of the end of FY2018

5

* Sony Group consolidated without Financial Services Segment** This is the amount deducting interest-bearing debt from cash.

Sony Corporation

Game & Network Services

Segment

FY2018 Achievements in Each Segment

• Accumulated total PS4® unit sales 96.8 million units,PS Plus subscribers 36.4 million users

• Ratio of Network Services sales 62%

Music Segment

Pictures Segment

• US box office revenue share in CY2018 11% (exceeded double-digit /#4 position for the first time in 4 years)

• Reduced cost by “Reimagine SPE” Project 15.0 billion yen /year

• Total streaming sales growth of Recorded Music/Music Publishing +16%*

• Improved cash generation capability(EBITDA) by EMI consolidation approx. 29 billion yen*(Total music publishing EBITDA: approx. 43 billion yen*)

6

* Including EMI, year-round basis

Sony Corporation

Electronics Products & Solutions Segment

FY2018 Achievements in Each Segment

Semiconductors Segment

Financial Services Segment

• Free cash flow 89.5 billion yen• Reduced operation costs in MC Business approx. ▲17%(vs FY2017)

• Historically-high new policy amount in force at Sony Life 6.15 trillion yen (increased by 16% vs. FY2017)

• Operating income 161.5 billion yen

• Image sensors revenue share 51%*• Image sensors capital expenditure 128.9 billion yen（Invested 22% of approx. 600 billion yen of FY2018-20 budget)

* Source: Sony7

Sony Corporation

FY18-20 Three Year Total Capital Allocation (without Financial Services)

8

2.2 TrillionYen

or more

Approx. 1.1 Trillion yen

StrategicInvestment

✓Primarily in Image Sensors✓Increase dividends in a stable and long-term manner

✓Key focus areas- Content IP- Technology acquisition

DividendsCapital ExpenditureOperating Cash Flow

FY18（Major achievements）✓Consolidation of EMI 392. 8 bln yen（Includes assumption of interest-bearing debt）

✓Repurchase of Shares 100 bln yen

FY19（Previously announced)✓Setting of Parameters forRepurchase of Shares 200 bln yen (maximum)

Sony Corporation

Policy Regarding Strategic Investment

Make investments for growth with higher return

Strategically repurchase own shares to increase capital efficiency

9

Sony Corporation 10

Jim Ryan

Game & Network Services Segment

Music Segment

Rob Stringer Jon Platt Michinori Mizuno Shunsuke Muramatsu

Semiconductors SegmentElectronics Products & Solutions Segment

Terushi ShimizuShigeki Ishizuka

Today’s Speakers

Pictures Segment

Tony Vinciquerra

Game & Network Services SegmentSony Interactive Entertainment

Senior Vice PresidentSony Corporation

President & CEOSony Interactive Entertainment

Jim Ryan

PlayStation® Assets

Platform Strategy - The Role of Next Gen

Content Distribution Strategy – The Role of Cloud and Streaming

Questions we want to respond to

One Sony Collaboration


Today

Medium Term

Longer Term

Today

Sony Corporation 12

PlayStation Assets


Sony Corporation 13

OWNED IP BRAND COMMUNITY


Sony Corporation 14

Owned IPDistinguished Game Studios

Franchise Strength IncreasingImproving Competence in

‘Game as a Service’ Revenue

13 Studios Worldwide


US Japan

Europe

PS2 PS3 PS4 PS3 PS4 PS3 PS4

Lifetime unit image by title and platform

92 94 92 93 95 95

Highest paying user spend of anySports title on the US Store

MLB® The Show™ 19

10mil

* Comparison in PlayStationTMStore 6weeks after launch

*

Sony Corporation 15

Our Brand Is Our Greatest Strength

Prophet brand relevance index Sep-18


#3 #7 #13

Sony Corporation 16

(UK) (DE) (US)

Engagement

Community

• 94M+* PlayStation™Network monthly active users

• Over 90% of all consoles ever seen have connected over the last 12 months

• Player used PS4 for over 21 hrs per week on average in FY18

Spend

• Consumer spend through the PS4 ecosystem estimated at over $20bn for the first time in FY18

• Average lifetime device spend exceeds $700

• Average launch year lifetime device spend exceeds $1,600


PlayStation®Plus subscriber base exceeds 36 million* As of end of Mar, 2019

*

Sony Corporation 17

Platform Strategy


– The Role of Next Gen

Sony Corporation 18

Generational Transformation


PlayStation®4 ProNext Generation( under development )

Ultra High Speed

00:00.83 00:08.10Loading time (sec) Loading time (sec)

Sony Corporation 19

SIE Believes in Generations

We will harness the power of new technology to offer completely transformative and immersive gaming experiences

We will leverage Backwards Compatibility to transition our community to Next Gen faster and more seamlessly thanever before

We provide stability of environment for content creators


Sony Corporation 20

Next GenWhat we have said so far

What we have not spoken about yet

All New CPU, GPU

Ray Tracing 8K

SSD

Date Price Games

Backwards Compatibility

Disc Support 3D Audio

Country Rollout


User Experience

Sony Corporation 21

The Critical Role of PS4

Will remain the engine of engagement and profitability for the next three years

Will provide the fertile early adopter gamer base critical for Next Gen success


Outstanding roster of exclusive AAA games still to come

Sony Corporation 22

Content Distribution Strategy


– The Role of Cloud and Streaming

Sony Corporation 23


Today

Sony Corporation 24

・

PS4 Remote Play Offers Seamless Multi-Device Streaming Today

5.6 Million active users, 71M+ hours of gameplay**1 FY18 yearly figure*2 Xperia only as of today


Android

iOS PC/Mac

1

2*

Sony Corporation 25

PlayStation™Now – the History

700k Subscribers : 40% CAGR*


* As of end of Mar, 2019

Current area coverage > 70% PS4 base Our experience in game streaming

2012 Acquisition of GAIKAI

2014 PS Now rental service launch

2015 Acquisition of OnLive IP

Sony BRAVIA, Blu-Ray, Samsung TVs support

2016 PS Now subscription service launch2015 20192014

Rich IP Portfolio

Sony Corporation 26

PlayStation™Now – Today

PS4/PC Client

19 Countries

780 games

170 Publishers Supporting

Streaming + Download

15 Data Centers37 Network POPs


* As of end of Mar, 2019

No developer effort required

Sony Corporation 27

PlayStation™Now and its technology

Server Network Client

Ultra Low latency with only 5Mbps bandwidth required


DynamicAdaptive

Streaming

StreamShaping

Congestion Control

NetworkProtocol

LowLatencyClient

Packet LossConcealment

Sony Corporation 28


Medium Term

Sony Corporation 29

Increase CAGR to over 50%

PlayStation™Now – Our Plans

Support1080p

and beyond

Improve Quality of Content

MaximizeOff-console Opportunity

Leverage ExistingCapacity

StrengthenMarketing

Support

Existing capacity investments support 5 mil subscriber base


Sony Corporation 30


Longer Term

Sony Corporation 31

SIE Believes in Gamer Choice

Next Gen

+ +

+

CD/DVD Blu-ray

Download

Blu-ray

Download

Streaming

Generation

MainstreamBusiness Model

PlayStation® PlayStation®2 PlayStation®4PlayStation®3


Sony Corporation 32

Role of Streaming in Next Gen


- Portable Client devices- Static Client devices- New Entitlement models- Next Gen Hardware- Next Gen Games- Evolved services

Next Gen LaunchGames

PS3PS4

Next Gen

5 mil(capacity)

Engines of Growth

A massively enhanced PlayStation community where enriched and shared PlayStation experiences can be seamlessly enjoyed independent of time and place – with or without a console

Our Vision

Sony Corporation 33

Using Partnership to Achieve Scale


• We will leverage existing and new partnerships to achieve growth and scale faster than ever before

• This follows the model successfully followed in growing our PSN business

Sony Corporation 34


Questions we want to respond to

Sony Corporation 35

$299

$199 $179

$149 $129 $99

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

PS2

PS3$599

$399 $299

$249 $199

2006 2007 2008 2009 2010 2011 2012 2013

PS3


Console promotional activity has been proportionate and has positive ROI

2018 Black Friday –$199 promotional pricing self-financed during FY18

All FY19 promotions willself-finance this year

$399 $349

$299

2013 2014 2015 2016 2017 2018 2019 2020

PS4

Sony Corporation 36

The 99, Not the 1


99

Sony Corporation 37

Cost Management

We recognize the need for a more stringent approach to the management of our cost base

PlayStation™Vue will not negatively impact our P&L from FY20 onward


Sony Corporation 38



Sony Corporation 39



Original music for 1st party games

VR content with Sony artists

Collaborationon Contents IP

Sony Corporation 40


1,943.8 2,310.9

177.5

311.1

+19%

(1)

(2)

(3)(4) (5)

Sales Revenue

FY2017Act

FY2018Act

(Bil yen)

Operating Profit

*1: Impact of foreign exchange fluctuations is calculated using the sales and costs denominated in each currency in FY2018 and comparing them with the previous fiscal year.

1) Sales growth of both 1st and 3rd party game software and add-on contents

2) Sales growth of network services mainly in PS Plus

3) Unit decrease due to lifecycle and higher console cost in hardware and peripherals

4) Increase of SGA in enhancement and expansion of network business, 1st party game software development and R&D cost of next generation

5) Negative impact of exchange rate *1 etc.

FY2018 Operating Profit Variation from FY2017

Sony Corporation 42


2,310.9 2,300

311.1280

-0.5%

(1) (2) (3)(4) (5)

Sales Revenue

FY2018Act

FY2019Fct

(Bil yen)

Operating Profit

*1: Impact of foreign exchange fluctuations is calculated using the sales and costs denominated in each currency in FY2019 and comparing them with the previous fiscal year.

1) Continuous sales growth of network services mainly in PS Plus

2) Cost improvement more than unit decrease due to lifecycle in hardware and peripherals

3) Sales decrease of 1st party game software that had big hit titles in FY2018

4) Increase of SGA in acceleration of next generation development activities

5) Negative impact of exchange rate*1 etc.

FY2019 Operating Profit Variation from FY2018

Sony Corporation 43

Music Segment

Sony Corporation

Sony’s Music Segment Music Segment

Sony Music Entertainment (“SME”)

Sony Music Publishing (“SMP”)

Sony Music Entertainment Japan (“SMEJ”)

Recorded Music: 54%

SME:

SMEJ:Music Publishing: 13%

Visual Media & Platform: 33%

SMEJ:

SME:

SME

SMEJ

SMP

SMEJ

SMEJ

SME

FY18 Outside Sales

45

Music SegmentSony Music Entertainment

Rob Stringer

Executive Vice PresidentSony Corporation

Chief Executive OfficerSony Music Entertainment

Sony Corporation

Music SegmentRecorded Music Market

$3.1

$4.7

$2.3

$9.0$14.3 $14.8$16.2

$17.4$19.1

CY14 CY15 CY16 CY17 CY18

+3.7%

Source: IFPI. Note: Digital Figures Include Digital Radio (SoundExchange)

47% OF TOTAL

MARKET

Public Performance/ Sync

Streaming

Downloads / Other Digital

Physical

–3.2%

Four Consecutive Years of Solid Revenue Growth; Expected to Continue($B, includes Japan)

+9.2%+7.4%

+9.7%

+33%

PAID SUBSCRIPTION

CY18 vs CY17 KEY METRICS

+22%

VIDEO

-21%

DOWNLOADS

47

Sony Corporation

2018Grammy Awards

Childish Gambino• Record of the Year

• Song of the Year

• Best Rap/ Sung Performance

• Best Music Video

Music Segment

IFPI 2018 Best Selling Global Single “Havana”

2.9Bn Streams LTD

GlobalSuccess

Camila Cabello

48

Sony Corporation

Music Segment

2019 So Far…

50M Monthly ListenersNow #1 Global Spotify

Artist

“Old Town Road”900M Streams

#1 Track of This Year

Lil Nas XKhalid

7 #1 Albums On Billboard Album Chart

Future, Backstreet Boys, Hozier, Khalid, BTS, P!nk, Vampire

Weekend

Travis Scott

Over 1.5Bn Streams 2019 YTD

5.8Bn Streams LTDApproaching 4M Album Equivalent Units Globally

Source: Spotify, Nielsen Music Connect, SME Sales Reporting 49

Sony Corporation

Music SegmentSME Financial Highlights

FY16 FY17 FY18 FY19 FCT

Op

era

tin

g In

com

e CAGR+25%

Record Profit

Profit Margin+6.5 ptsVs. FY16

Strong Growth in Operating Income, Cash Flow and Margin

+ Additional $1BN Spotify Gain

Excludes one-time $1B Spotify gain*

*

50

Sony Corporation

Music Segment

Continued Expansion of Global Footprint & Service Capabilities

40+ Markets Worldwide

Successful Investment in The Orchard

NOTE: The Orchard Revenue Reported On A Net Fee Basis

24,000 Labels

600,000 Artists

13Million

Tracks

30,000New Tracks per Week

+26% OPERATING INCOME CAGR SINCE FY15

51

Sony Corporation

FY15 FY16 FY17 FY18 FY19 FCT




Music SegmentIncreased Investment in Talent Acquisition and Development

IncreasedResources in Creative Staff

Increased Investment In Talent

Increased Artist Signings*

IncreasedRoster Size*

AnnualSignings:

+93% vs. FY15

Roster Size:+45% vs. FY15

Annual Talent Investment:

+46% vs. FY15

Talent Discovery Headcount:

+75% vs. FY15

52* Number of Persons

Sony Corporation

New Leadership at Key Creative Centers

• New President and Co-Heads of A&R

• Newly Structured Region• New Head of GSA

Relaunch of Arista

• Additional Major U.S. Label – 20 New Artists Signed

• Experienced Executive Team

• Management & Publishing Divisions

Label Partnerships and Joint Ventures

Expanding Repertoire Centers and Creative Resources Music Segment

Keep Cool Visionary

September Six Course

SamePlate Palm Tree

CONTINENTAL EUROPE & AFRICA


Relaunch of Arista Records

Establishing Joint Venture Labels

53

Sony Corporation


Relaunch of Arista


Supporting Partner Innovation

Sharing Market Intelligence With DSPs

CollaborativeMarketing

Music SegmentDriving Global Music Market DevelopmentWorking With Commercial Partners to Drive Paid Subscription Growth

Voice Activation

Accretive Bundles

New Business Models

GenreOpportunities Untapped

Demographics

PromotionEffectiveness

Acquisition and Conversion Campaigns

Consumer Behavior

54

Sony Corporation

Music SegmentDriving Global Music Market Development

Emerging and Growth Markets

Subscription Model Creating Opportunities In…

Aggressive SMEGrowth Strategy

Eastern EuropeRussia

Africa SE Asia

India

Joint Venture

with

#7 Global Market

Headcount & Roster Growth

Latin Iberia

+13%Market GrowthY-o-Y*

+33%Streaming GrowthY-o-Y*

3 of Top 15Global Markets

Build On #1 Leadership Position

In Latin Iberia

China New Markets

Expand Global Footprint

55* Annual Growth in CY2018

Sony Corporation

World Class Global Workforce[employee photos in background]

Music SegmentSony Music’s Extensive Value Proposition to Artists

Data &Analytics

Creative Excellence

MarketingExpertise

Relationships and Access

GlobalReach

Core: Talent / Artists

World-Class Global Workforce

56

Sony Corporation

Music SegmentSony Music Value Proposition

Investing In Capabilities to Expand Our Value Proposition and Deepen Our Relationship with Artists

Premium New Content

Podcasting Production Brands

Merchandising Services

Creative Studio Centers Live / Ticketing

Artist Management Hubs

Artist-Led Ventures

57

Sony Corporation

Enhancing Data & Analytics Capabilities

Continued Investment In People & Technology

Simple, Insightful Tools and Dashboards

Enhanced Internal Capabilities

Cutting Edge Analytical Techniques

Talent Discovery

Marketing Efficiency

Audience Development

Commercial Sales

58

Music Segment

Sony Corporation


Relaunch of Arista


Fair Compensation For Artists

Transparent Artist — Label Relationship

Real Time Royalty Accounting

Music SegmentIndustry Leader in Artist Relations

Sony Music Industry Leading Approach to…

Simple Flexible Artist Contracts

Best-In-Class Artist Sales and Royalty Portals

Extremely Positive Reaction to SME Spotify Equity Payments

Introducing Real Time Royalties & Cash Out

59

Sony Corporation

Music SegmentPharrell Williams & Sony Partnership

CES PresentationJanuary 2019, Las Vegas

In The Water FestivalApril 2019, Virginia

Music TechnologyDevelopment ProjectOngoing

Sony HQ VisitNovember 2018 Tokyo

60

Sony Corporation

Music SegmentSony Competitive Differentiation

Sony Music Position as Part of the Sony Family of Companies Enabling Unique Commercial, Promotional, and Creative Opportunities Across Business Units

61

Appendix

Sony Corporation

Music SegmentSony Music Operating Income: FY17 Act to FY18 Act

FY17 Act FY18 Act

1

2 3

1

2

3

Physical & Download

Streaming

Higher prior year one time expenses and current year savings offset by increased investment in talent, SG&A, and unfavorable FX

(US Dollars)

63

Sony Corporation

Music SegmentSony Music Operating Income: FY18 Act to FY19 Forecast

(US Dollars)

FY18 Act FY19 Forecast

1

2 3 1

2

3

Physical & Download

Streaming

Investment in talent, data analytics, emerging markets, and new business verticals

64

Music SegmentSony/ATV Music Publishing

Jon Platt

Chairman & Chief Executive OfficerSony/ATV Music Publishing

Sony Corporation

Music Publishing Overview Sony/ATV Music Publishing

RadioStations

Cable Networks

TelevisionNetworks

Digital Streaming

Physical & Downloads

Live Concertand Stage

Film Soundtrack and Trailers

Advertising

Video Games

Diversified Sources of Revenue

66

Sony Corporation

Music Publishing Market Sony/ATV Music Publishing

Growth Trajectory

$ in billions

Source: Music & Copyright

$4.0 $4.0 $4.2 $4.4 $4.9

$5.5

2% 2% 4%

5%

11% 11%

CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2021

Global Music Publishing Revenues Growth %

67

CY 2021E

Sony Corporation

Importance of EMI Acquisition Sony/ATV Music Publishing

Exemplifies Sony Corp’s Content Strategy

High Margin

Recurring Revenue

Diverse Revenue Stream

Stable Cash Flow

Genre Diversity

One Sony Projects

Decade Spanning

2.1 Million Copyrights

68

Sony Corporation

FY 2017 FY 2018 FY 2019

Impact of EMI Acquisition Sony/ATV Music Publishing

Material Increase to Operating Income

39.8% Equity Interest

100% Owned November 2018

100% Owned Full Year

69

FY 2019 FCT

Sony Corporation

Roster of the Most Talented Songwriters Sony/ATV Music Publishing

Taylor Swift

Luis Fonsi Lady Gaga

The Beatles Drake

Queen

Stevie Wonder

P!nkPharrell

Carole King

Ed Sheeran

Sara Bareilles

70

Sony Corporation

Top Earning Songs By Release Year Sony/ATV Music Publishing

196

0s

&

Old

er

1970

s &

19

80

s19

90

s &

20

00

s20

10s

&

Tod

ay

71

Sony Corporation

#1 Publisher Around the World Sony/ATV Music Publishing

Based on CY 2018 Worldwide Revenue (1)

Based on CY 2018 Radio Airplay in the U.S. (2)

Based on CY 2018 Singles Market in the UK (3)

(1) Music & Copyright (2) Nielsen BDS (3) Music Week 72

Sony Corporation

Long Term Strategies Sony/ATV Music Publishing

1

2

3

4

5

Be the Destination For the Best Songwriters in the World

Expand Our Presence in Emerging Markets

Differentiate and Grow through Proprietary Technology

Leverage Our World Class Licensing Organization

Achieve Fair Digital Streaming Royalty Rates

73

Sony Corporation

Long Term Strategies (Continued) Sony/ATV Music Publishing

1 Be the Destination For the Best Songwriters in the World

74

Khalid Cardi B Travis Scott

Sony Corporation


2 Leverage Our World Class Licensing Organization

75

Sony Corporation


3 Achieve Fair Digital Streaming Royalty Rates

76

Sony Corporation


4 Expand Our Presence in Emerging Markets

77

Sony Corporation


5 Differentiate and Grow through Proprietary Technology

CreativeLicensingAdministration

SATV Proprietary

Software

New Songwriter Discover &

Accompanying Analysis

78

Appendix

Sony Corporation

OP Bridge from FY17 to FY18 Sony/ATV Music Publishing

Removal of 39.8% prior ownership of EMI

Consolidation of 100% of EMI

Declines in Physical and Digital Download

Growth in Streaming

FX/All Other

1

324 5

FY17Actual

FY18Pro Forma 80

1

2

3

4

5

Sony Corporation

OP Bridge from FY18 to FY19 Sony/ATV Music Publishing

FY18 Pro Forma

FY19FCT

1

324

1

2

3

4

Declines in Physical and Digital Download

Growth in Streaming

Consolidated Cost Savings

FX/All Other

81

Michinori Mizuno


Chairman and Representative Director of the Board, CEO Sony Music Entertainment (Japan) Inc.

Shunsuke Muramatsu

President and Representative Director of the Board, COO Sony Music Entertainment (Japan) Inc.

Music SegmentSony Music Entertainment (Japan) Inc.

Sony Corporation

Music Segment (SMEJ)

Michinori Mizuno83


Chairman and Representative Director of the Board, CEO Sony Music Entertainment (Japan) Inc.

Sony Corporation


Creating and Maximizing Hits Strengthen music and anime IP Leverage IP

Road to General Entertainment Company

84

Sony Corporation


Content

Digital Real

Live

Artists, Songs, recorded music, anime, video,

mobile game, characters, etc.

85

Sony Corporation

Label, Marketing & Distribution

Visual

Artist Management & Publishing

Solution

Net & Media／Live

Artist ＆ Music

Visual ＆ Character

Entertainment Solution


Contents-basisFunction-basis

86

Sony Corporation

Shunsuke Muramatsu


87

President and Representative Director of the Board, COO Sony Music Entertainment (Japan) Inc.

Sony Corporation

０１ ∞

88

Sony Corporation 9


Chairman & CEOSony Pictures Entertainment

Pictures SegmentSony Pictures Entertainment

Tony Vinciquerra

Tony VinciquerraChairman and CEO

Mike HopkinsChairman, Sony Pictures Television

Jon HookstrattenEVP, Administration & Operations

Erik MorenoEVP, Corporate Development And M&A

Stacy GreenEVP, Chief People Officer

Leah WeilSEVP & General Counsel

Philip RowleySEVP & Chief Financial Officer

Tom RothmanChairman, Motion Picture Group

Robert LawsonEVP, Chief Communications Officer

November 2017 July 2017September 2018 August 2018

February 2015 April 2001May 2016 May 2015

Pictures SegmentSenior Leadership Team

Sony Corporation 91

June 2017

State of the Entertainment Industry

Sony Corporation 92

Pictures Segment

Increase in Sony Pictures Streaming Shows

2015 2019

4

17

��

• Behind Her Eyes• The Commons• Them: Covenant• White Lines• Wheel of Time

��

Sony Corporation 93

Pictures Segment

Global Digital Centers for Theatrical Marketing

Consolidation of Media Networks, TV Distribution and Home Entertainment

Media Networks Portfolio Review

“Reimagine” SPE

Sony Corporation 94

Pictures Segment

“Reimagine” SPE

Approximate Annualized Savings of $135 million

Sony Corporation 95

Pictures Segment

Margin Improvement

4.1%

5.5%

6.0%

FY17 FY18 FY19E FY20E FY21E

Operating MarginSony Corporation 96

Pictures Segment

Controlling Production Costs

Managing Marketing Spend

Co-financing/Strategic Partnerships

Controlling Cost/Managing Risk

Sony Corporation 97

Pictures Segment

Managing Risk & Volatility

Expanded relationships, co-financing partners

Sony Corporation 98

Pictures Segment

Content LibraryStrong I.P. Independent Studio One Sony Collaboration

Four Pillars

Sony Corporation 99

Pictures Segment

4

Strong I.P.

Sony Pictures Universe of Marvel Characters Extending SPE’s Library I.P. Focus on I.P.-Based Material and Franchises

Kraven

Sony Corporation 100

Pictures Segment

Independent Studio


Pictures Segment

Diversified Portfolio of Shows…


Pictures Segment

…Across All Platforms


Pictures Segment

Content Library


Pictures Segment

Cinderella


Sony Music


Pictures Segment

Sony’s Breadth and Scale


Pictures Segment


Pictures Segment

Sony Tech in Production


Pictures Segment

The Crown © 2018 Left Bank Pictures (Television) Limited. All Rights Reserved.Jumanji: Welcome to the Jungle © 2017 Columbia Pictures Industries, Inc. All Rights Reserved.

Creating & Delivering High Quality Content


Pictures Segment

Sony Tech in Delivery


Pictures Segment

Appendix

SPE FY18 Review

Note: FY17 Revenues and OI are under Old GAAP. FY18 Revenues and OI are under New GAAP.Source: Pictures Segment Supplemental Data, March 31, 2019

$8,870Sales revenue

$9,133-2.9%

$376

FY18 ActualFY17 Actual

Operating income

$489

1

2 34

1. Substantial increase in Motion Pictures’ OI driven by the carryover performance in FY18 of higher margin FY17 titles such as Jumanji: Welcome to the Jungle and Peter Rabbit (no comparable carryover performance in FY17 from FY16 titles), higher television/home entertainment sales and margins, and development/overhead savings

2. In Television Productions, lower revenues in the current year from various current and prior U.S. television series

3. Media Networks had lower advertising and subscription revenues at SPNI and various international channels

4. One-off charges due to Media Networks portfolio review costs, partially offset by impact of GAAP rules change

Revenue Decreased 3% To $8.9 Billion; OI Grew 30% To $489 Million

($ in millions)


SPE FY19 Forecast

Note: Revenues and OI are under New GAAPSource: Pictures Segment Supplemental Data, March 31, 2019 and SPE Management* FY19 sales forecast converted at 110 JPY/USD to ¥1,080 billion

$9,820*Sales revenue

$8,870+10.7%

$489

FY19 ForecastFY18 Actual

Operating income$593

1 2 3

4

1. Projected decrease in Motion Pictures OI is due primarily to slate mix and timing (e.g., larger 4th quarter theatrical marketing expense in FY19) and less carryover performance from the FY18 slate than the carryover into FY18 from the FY17 slate

2. Television Productions is forecasting an increase in OI related to the 3rd season of The Crown and assumed new and returning series, partially offset by increased development expense

3. Media Networks growth primarily from India as well as the projected improvement in earnings from the MN portfolio review undertaken in FY18

4. One-off charges in FY18 due to Media Networks portfolio review costs

Assumptions for FY19:($ in millions)


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

Sony Corporation

Representative Director and President Sony Imaging Products & Solutions Inc.


Shigeki Ishizuka


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


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


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



Home Entertainment & Sound Business(HE&S)


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


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



Imaging Products & Solutions Business(IP&S)


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


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



Mobile Communication Business(MC)


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



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%



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



Solution Business

Sony Corporation

New Visual Experience with Large Displays, from Consumer to B2B

129

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.130

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



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

Appendix

133


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)

134

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

135

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

136

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

137

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

138

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

139

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

140

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%

141

Terushi Shimizu


Representative Director and PresidentSony Semiconductor Solutions Corporation

Representative Director and PresidentSony Semiconductor Manufacturing Corporation


Sony Corporation


1. Business Environment

2. Long-Term Business Strategy

143

Sony Corporation


1. Business Environment

144

Sony Corporation

Worldwide Image Sensor Shipments (Revenue Basis)

※Source: Sony

Mobile Area• Market expansion from multiple lens and large sized sensors

• Steady adoption of sensing products although the pace of market growth is slower than expected

AV Area• No change in expansion of high-end sensor market

New Area• Automotive: No change in the speed of growth of the ADAS market

• Factory Automation：Growth market in the mid to long term

• Security：Stagnant market from late FY18 to early FY19. Expect recovery in FY19

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

New AreaMobile SensingMobile Multiple Lens (Sub Camera)

AVMobile Front + Rear


145

CY 19E 20E 21E 22E 23E 24E 25E

Sony Corporation

Mobile Market Growth: Smartphone Units x Multiple Lens x Larger Size

Increase inSensor Units

and Number of Wafers


Smartphone Multiple Lens Adoption Rate

Smartphone Sensor Optical Size

146

Approximately20%*

Average AnnualIncrease in Sensor

Size

Approximately15%*

Average AnnualIncrease in MultipleLens Adoption

※Source: Sony’s Forecast

AlarmSound

Toyota Corolla Sports vehicle with Sony’s sensorwas awarded the top score in the automatic braking tests for

night-time pedestrians (1st half of FY18)

Brake!

Sony Corporation

Automotive Initiatives Semiconductors Segment

148

Initiatives for the futureSensor fusion

• Achieve quality and functionality for automotive - high sensitivity, high resolution,and capable of reducing LED flicker while maintaining high dynamic range

Camera

Milliwaveradar

Sensor Fusion

• Able to integrate large amounts of raw data from camera images, LiDAR and milliwave radar

• Identify objects even in harsh conditions

LiDAR

Recent initiativesAutomotive image sensor space

IMX224（1.27M pixels）

IMX324（7.42M pixels）

Current Model

IMX490

Sony Corporation

Automotive Initiatives: Sensor Fusion Semiconductors Segment

149

Scene 1: Fog Scene 2: Backlight Scene 3: Night & Rain

• Identify car ahead despite fog making it difficult to see

• Identify car ahead despite glare making it difficult to see

• Identify car ahead despiteheadlights and rain making itdifficult to see

Current Technology

Sony’s Sensor Fusion

Sony Corporation

Image Sensor Revenue Share Target

51%*FY25Target

60%

FY18

※Source: Sony


150

Sony

Sony

Sony Corporation

Revenue Portfolio Target

SensingSeveral%

FY25Target

Sensing30%

FY18


151

Sony Corporation

Image Sensor CAPEX

FY12-14 FY15-17 FY18-20E FY21E-23E


152

Approx.700 billion yen

Sony Corporation

ROIC Target / Roadmap to Improvement Semiconductors Segment

×

＝

ROIC Actual15%

Target20%-25%

MarginHigher functionality,higher value added

productsOperational improvement

Decrease in depreciation and R&D

FY18 FY25FY21

InvestedCapital

Turnover Rate

CAPEX increase due to higher demand

Improvement in turnover rate due to decrease in CAPEX investment

153

Sony Corporation

2. Long-Term Business Strategy


154

Sony Corporation

Long-Term Business Strategy

FY19-21 Beyond FY21

Market for mobile-use image sensors grows Mobile 3D sensing penetration expands

Sensor market growth stabilizesUse case diversifies

Combine edge AI processingwith sensor hardware

Pursue a recurring revenue business model

Aggressively invest to maintain No.1 position in imaging and

take No.1 position in sensing

Market Environment

Pursue partner strategy inthe software space

Generate cash flowExpand the business through new use cases in sensing

HWStrategy

SWStrategy

*HW: hardware, SW: software


155

Sony Corporation

Sony Sensors Used in Various Applications Around the WorldSemiconductors Segment

156

Sony Corporation

Cloud and Edge AI Processing

Benefit:• Big data processing ispossible

• Less influence from edge device performance

Benefit:• Ensure privacy• Reduces data transfer time• Reduces cloud usage costs• Reduces bandwidth

Edge AI Processing

Processing

Cloud AI ProcessingProcessing


157

Sony Corporation

Image Sensors × AI Possibilities

Imaging AI Sensing AI

Better Picture QualityPossibilities limited to

the number of human eyes

Recognition andMachine VisionUnlimited Possibilities

Eliminates moireCorrection beyondphysical limitations

Utilizes complementary colorsHigh sensitivity and color

reproduction

Moire


158

Sony Corporation

Role of Image Sensors in the AI Era

What Image Sensors AimTo Do Going Forward

Create clean image data based on how AI sees the world

What Image Sensors AimedTo Do Up Until TodayCreate clean images based on how human eyes see the world


159

Sony Corporation

Integration of Edge AI Processing and Sensor Hardware

Approximately 51%* global market share Superb expertise in data output space

Integrate edge AI processing and sensor hardware Pursue a recurring revenue business model


Sony Image Sensors AI Applications

160

※Revenue basis, Source: Sony

Sony Corporation

Increase Image Sensor Possibilities with Stacked Structure

AI Recognition

PixelsPixels

LogicEmbed


161

Sony Corporation

Growth in Image Sensor BusinessSensingEdge AI


162

Sony Corporation

Appendix


163

Sony Corporation

Achievements

Increase in sales and OI in image sensors for mobile-use due to the shift to multiple lenses and larger sized sensors

Adoption of Sony’s ToF sensors for mobile applications

Increased presence in the automotive market

Adaptability to market volatility for factory automation and security cameras

Operating Income Analysis（bln yen）

Issues

OperatingIncome

879.3Sales 850.0Image Sensors

711.4Image Sensors

649.3

1USD=110.9 yen 110.9 yen

One-Time Factors*

Depreciation / R&D

Inventory Change

Exchange Rate

Unit increase/Product Mix Improvement/Cost

Reduction


164

FY2018 Review

164.0

143.9

* Please refer to slide 24 of Presentation Material for FY2018 Earnings.

Sony Corporation

Environment

Acceleration in multiple lens and larger sized sensor adoption

Sensor market for factory automation and security are expected to recover from the second half of FY19, after a slowdown in the second half of FY18

990879.3

Operating Income Analysis（bln yen）

Basic Strategy

Invest to meet the growing demand for sensors

Accelerate initiatives to generate monetization opportunities that go beyond selling sensor hardware

Image sensors840

Image sensors711.4

（April Forecast）


165

FY2019 Forecast

Sales

143.9 145

Depreciation / R&D

Inventory Change

Exchange Rate

Unit increase/Product Mix Improvement/Cost

Reduction

1USD=110.9 yen 110 yen

OperatingIncome

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

(i) Sony’s ability to maintain product quality and customer satisfaction with its products and services; (ii) Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and

televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences;

(iii) Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;(iv) the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;(v) changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing

consumer focus on corporate social responsibility; (vi) Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures

correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;(vii) Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and

its other business operations;(viii) the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;(ix) Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;(x) Sony’s ability to forecast demands, manage timely procurement and control inventories; (xi) foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets, liabilities and operating

results are denominated; (xii) Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel;(xiii) Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the

intellectual property rights owned by others;(xiv) the impact of changes in interest rates and unfavorable conditions or developments (including market fluctuations or volatility) in the Japanese equity markets on the revenue and operating income of the Financial Services

segment;(xv) shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services segment;(xvi) risks related to catastrophic disasters or similar events;(xvii) the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable

information of its employees and customers, potential business disruptions or financial losses; and(xviii) the outcome of pending and/or future legal and/or regulatory proceedings.

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

Cautionary Statement

Note to the Financial Information without Financial ServicesFinancial information without Financial Services made in this presentation is not in accordance with accounting principles generally accepted in the United States of America, 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 utilizes this information to analyze its results without the Financial Services segment and believes that a comparative presentation may be useful in understanding and analyzing Sony’s consolidated financial statements.

Sony Corporation

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Sony IR Day 2019 › SonyInfo › IR › library › presen › ... · Sales & 8,544.0 8,665.7 operating revenue FY2017 FY2018 4 Operating income 734.9 894.2 Net income attributable