Sony Sorporation

Corporate Strategy Meeting

Sony Corporation

April 12, 2012

Sony Corporation 1

“ Sony will change.”

Sony Corporation 2

Kazuo Hirai, President & CEO

Electronics Financial Services Entertainment

Sony Corporation 3

Electronics Corporate Strategy

1. Current Issues

2. Key Initiatives to Transform Electronics Business

3. Management Structure to Execute Key Initiatives

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1. Current Issues



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Electronics: Issues to be Addressed

Investment focus/selection based on long-term strategies

Business management speed

TV business loss-making for 8 consecutive years

Innovative products, services and technology

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Sony’s Strengths

“Sony DNA” – The will & drive to generate new value

Global reach and brand recognition

Technology development in digital imaging, game etc.

Content & business know-how in film, music & game

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1. Current Issues



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Key Initiatives

Strengthening core businesses Digital Imaging / Game / Mobile

Turning around the television business

Creating new businesses & accelerating innovation

Realigning the business portfolio and optimizing resources

Expanding business in emerging markets

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Key Initiatives






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Electronics: Core Businesses

Within Electronics, 3 focus areas to generate 70% of Sales and 85% of operating income in FY14 (target)

Digital Imaging / Game / Mobile

Sales Operating Income

70% % of Sales 85%

% of Operating Income

60% FY11 FY14 FY14

Concentrate investment & technology development in 3 focus areas Digital Imaging / Game / Mobile

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Core Businesses: 1. Digital Imaging

1,600

1,200

800

400

0

(bln yen)

100

0

200

(bln yen)

300

400

FY11 FY14 FY11 FY14

Sales Operating Income

・Digital Imaging

- Consumer Products (Digital still cameras / Digital video cameras / Interchangeable lens digital cameras, etc)

- Broadcast and Professional Products (Professional-use cameras, etc.)

- Image Sensors (Semiconductors)

・FY14 Targets

Sales: 1.5 trillion yen

Operating Income:

Target double-digit operating income margin

Sales

Operating Income

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Core Businesses: 1. Digital Imaging

Signal processing technology

Lens

(Professional-use cameras, etc.)

Image sensors

Sony-only technology

NEX-7

α77 F65

Broadcast and Professional-use Consumer-use

(Digital still cameras / Digital video cameras / Interchangeable lens digital cameras, etc)

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Core Businesses: 2. Game

1,200

1,000

800

600

400

200

0

(bln yen)

50

0

100

(bln yen)

250

300

Operating Income

FY11 FY14 FY11 FY14

150

200

Sales

・Game

- Hardware

- Software

- PlayStation®Network etc.

・ FY14 Targets

Sales: 1 trillion yen

Operating Income :

Target 8% operating income margin

Sales

Operating Income

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Core Businesses: 2. Game

PS3®/PS Vita and peripheral businesses generating steady profit

Strengthen & expand network services business

PlayStation®Network: Grow full-title game downloads

PlayStation®Plus: Enhance subscription service

PlayStation®Suite: Increase casual game content & compatible devices

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Core Businesses: 3. Mobile

400

0

(bln yen)

1,600

1,200

800

50

0

100

(bln yen)

Operating Income

150

200

FY11 FY14 FY11 FY14

Sales

Sales

Operating Income (loss) ・Mobile

Smartphone / Tablet / PC, etc. ・FY14 Targets

Sales: 1.8 trillion yen

Operating Income: Significant improvement

FY11 Sales and operating income do not include Sony Mobile Communications However, the dotted lines show sales from Sony Ericsson Mobile Communications as an equity affiliate of Sony Corp. for the purposes of comparison with FY14 .

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Core Businesses: 3. Mobile

Sony Convergence

Sony-only Technology Entertainment Assets Digital Imaging & Game

Technology & Know-How

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Key Initiatives






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1. Fixed business cost reductions 2. Operating cost reductions 3. Enhancing product competitiveness

Target: Profitability in FY13

Solid execution of turnaround plan

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Turning around the television business: Solid execution of turnaround plan

1. Fixed business cost reduction target: 60% (Reduction from FY11 levels by FY13)

- Allows for flexible panel procurement - Target 30% reduction excluding panel JV-related

fixed business costs

Operating costs 2. Operating cost reduction target: 30% (Reduction from FY11 levels by FY13)

- Model count reduction - Target 40% reduction vs. FY11 levels by FY12

- Operational improvement (supply chain, one-time charges, disposal costs etc.)

FY11 FY13

FY11 FY13

Panel JV-related Other

Fixed business costs

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Differentiation through Sony-unique technologies

LCD TV Evolution Sony Convergence Next-Gen Display

Addressing regional needs

Mobile & Connectivity OLED

Enhanced network services

Crystal LED Display

Simplified connection & operation

Outstanding resolution suited for large-sized screens

Turning around television business: Enhancing product competitiveness

High resolution & high sound quality

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Key Initiatives






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Further expansion in rapidly growing emerging markets

Emerging Market Sales Target (Electronics – All)

FY11

1.8 trn yen

2.6 trn yen

FY14

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Strengthen supply chain & operations

Products tailored to local needs

Emerging Market Initiatives

Promote Group-wide assets

Joint promotions with Pictures & Music, etc.

＋

Further expansion in rapidly growing emerging markets

Home Audio

Notebook

TV

Home Audio

Notebook

TV

India Consumer AV / IT

No.1 share

FY11

50% 60% FY09

40%

FY14

Emerging Market Sales Composition Target (AV / IT businesses)

Mexico Consumer AV / IT

No.1 share

* FY11 revenue share

Sony 60%

Sony 15%

Sony 30%

Sony 35%

Sony 30%

Sony 15%

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Growth in Emerging Markets

Deploy total Sony Group-wide operational strengths in emerging markets

Sony Pictures Television operates multiple highly-viewed television channels, including one of the most

watched general entertainment channels, and targets a leading industry position.

India:

Promoting HD/3D content production through the Media

Technology Center in Mumbai

270 stores nationwide (Sony Centers, etc.)

No. 1 consumer AV/IT share made possible

through stable supply chain management

Brand enhancement through Entertainment

Leading the industry through high-quality content creation

Strong consumer product sales & operations

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Key Initiatives






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New Businesses: Medical

・Medical peripherals: FY14 sales target: 50 billion yen

Current Businesses

Medical Equipment B2B Business

Life Sciences Businesses

Printer

Camera Recorder

Monitor

・Enter medical diagnostics business - Acquired iCyt, maker of cellular analysis equipment - Acquired Micronics, maker of medical and diagnostics equipment

・Grow medical equipment business (endoscopes, etc.) By leveraging image sensor, lens, image processing and other Sony technologies

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Accelerating Innovation: 4K

LSI

8K-CMOS Image sensor

SXRD: world’s smallest 4K display device

4K ultra high resolution processing LSI

4K signal processing image compression

High-speed optical transmission module

4K-related technology

Expand lineup of professional-use and high-end consumer-use products

CineAlta F65 World’s first 4K home

theater projector VPL-VW1000ES

Digital cinema projector SRX-R320

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Key Initiatives






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Realigning the business portfolio

Realignment in other business areas Invest in core and new businesses

Invest in core and new businesses through stringent selection and focus

Core Businesses - Digital Imaging - Game - Mobile New Businesses - Medical

Small & mid-sized LCDs - Business spun off into JV

Chemical products businesses - Business transfer negotiations

E-vehicle batteries & energy storage - Exploring alliances

Others

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Estimated headcount reductions of approx. 10,000 in FY12

Restructuring charges: 75 billion yen in FY12

1. Modify the business portfolio

2. Restructure headquarters, subsidiaries, sales groups etc.

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1. Current Issues



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One Sony

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One Management

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CSO CFO

New Management Structure

CEO

Entertainment Financial Services Electronics

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S. Nemoto K. Suzuki Direct to CEO T. Suzuki H. Yoshioka

Digital Imaging Sony Computer Entertainment

Home Entertainment &

Sound

Sony Network Entertainment Semiconductors

Global Sales & Marketing

CSO : T. Saito

CFO : M. Kato

Product Strategy: K. Suzuki

Technology: S. Nemoto

Headquarters

Professional Solutions VAIO & Mobile Sony Mobile

Communications

CEO: K. Hirai

Corporate R&D, System and Software Technology, Advanced Device Technology

UX / Product Strategy / Creative

Medical Device Solutions

Manufacturing, Logistics, Procurement and Quality

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Entertainment From June 27 Financial Services

SFH President: K. Ihara

CEO

CSO CFO

Sony/ATV Music Publishing

SCA CEO: M. Lynton Electronics

Sony Pictures Entertainment

Sony Music Entertainment

Sony Music Entertainment

(Japan)

Sony Life

Sony Assurance

Sony Bank

* SCA : Sony Corporation of America , SFH: Sony Financial Holdings

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Summary

Digital Imaging Targets: Sales: 1.5 trillion yen / Operating income margin: Double-digits in FY14 Game Targets: Sales: 1 trillion yen / Operating income margin: 8% in FY14 Mobile Targets: Sales: 1.8 trillion yen / Operating income: Significant improvement in FY14

Strengthening Core Businesses:

Turning around the television business: Profitability in FY13, Solid Execution of Turnaround Plan

Expanding business in emerging markets: Emerging Markets sales target: 2.6 trillion yen in FY14 Creating new businesses and accelerating innovation: Medical business, 4K, etc.

Creating new businesses and accelerating innovation

Management Structure: “One Sony” / “One Management”

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FY14 Targets

・Sony Group Sales: 8.5 trillion yen Operating income margin: >5% ROE: 10% ・Electronics

Sales: 6 trillion yen Operating income margin: 5%

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 you 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 you should not place undue reliance on them. You 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) the global economic environment in which Sony operates and the economic conditions in Sony’s markets, particularly levels of consumer spending; (ii) 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; (iii) 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 LCD televisions and game platforms, which are offered in highly competitive markets characterized by 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 business); (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 (in particular the recent acquisition of Sony Ericsson Mobile Communications AB); (x) Sony’s ability to forecast demands, manage timely procurement and control inventories; (xi) the outcome of pending legal and/or regulatory proceedings; (xii) 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; (xiii) 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 (xiv) risks related to catastrophic disasters or similar events, including the Great East Japan Earthquake and its aftermath as well as the October 2011 floods in Thailand. Risks and uncertainties also include the impact of any future events with material adverse impact. Sony is currently modifying its business segment classification to reflect its reorganization as of April 1, 2012. Sony expects to report its operating results in line with new business segments from the first quarter of the fiscal year ending March 31, 2013.

Sony Sorporation

Documents

electronics business

business portfolio

fy11 fy14 fy11 fy14

mobile sony convergence

television business

operating income loss

resourcessony corporation

new value sony corporation