Sony Ericsson Strategy Update · Sony Ericsson Strategy Update Bert Nordberg, ... Restructuring charges ... Co-creation with Sony Create market with new

Sony Ericsson Strategy Update

Bert Nordberg, President

May 5, 2010

Q1 2010 highlights

Company returns to profitability in Q1 2010

Improved cost structure generates better margins

ASP rises to Euro 134 as Xperia™ X10 and Vivaz™ start shipping

Q1 2010 financial results

Number of units shipped (million)

Sales (EUR m.)

Gross margin (%)

Operating income (EUR m.)

Operating margin (%)

Restructuring charges (EUR m.)

Operating income excl. restructuring charges (EUR m.)

Operating margin excl. restructuring charges (%)

Income before taxes (IBT) (EUR m.)

IBT excl. restructuring charges (EUR m.)

Net income (EUR m.)

Average selling price (EUR)

1,736

8%

-369

-21%

12

-357

-21%

-370

-358

-293

120

14.5

2009

Q1

1,750

23%

-181

-10%

150

-32

-2%

-190

-40

-167

120

14.6

2009

Q4

1,405

31%

20

1%

3

23

2%

18

21

21

134

10.5

2010

Q1

Financial trendTrend 2008 Q1 to 2010 Q1 by quarter – excl restructuring

Transformation update

Transformation programme 80% completed

Estimated restructuring charges to be close to Euro 400 million

Global workforce reduced by 3,150 from target of 4,000

Continue to build a leaner, flatter, more responsive organization

R&D sites with Platform & SW development

Sony Ericsson’s path

Value

players

Volume

Pro

fit

o Return to profitabilityo Build value market shareo Focus on qualityo Focus on smartphones

Annual market growth 1,120

387

500

780

980

620

1,190

407

1,095

Continued market uncertainty due to macro economic environment*Million units

Coverage strategy

China• Capture market growth through

leveraging of global portfolio and investment in TD-SCDMAWestern Europe, CEEMEA, APAC, LAM

• Maintain current strong position in Europe• Capture growth opportunities in many markets• Invest to grow in APAC and LAM

US• Deliver relevant portfolio • Prioritize operators • Leverage partners for

development and distribution

Japan• Leverage global open OS portfolio

CONFIDENTIAL

CONFIDENTIAL

Unique user

experiences

XperiaTM X10

CONFIDENTIAL

The power

of design

2010 core portfolio

Create harmony

CONFIDENTIAL

User experience and Android platform

will be upgraded over time

Co-creation with Sony

Create marketwith new

propositions

SONY ONLINE SERVICES

Communication Entertainment

A/V Entertainment

L

Thank you