Sony Sorporation
-
Upload
mohit-hirlekar -
Category
Documents
-
view
34 -
download
0
description
Transcript of 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
Sony Corporation 4
Electronics Corporate Strategy
1. Current Issues
2. Key Initiatives to Transform Electronics Business
3. Management Structure to Execute Key Initiatives
Sony Corporation 5
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
Sony Corporation 6
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
Sony Corporation 7
Electronics Corporate Strategy
1. Current Issues
2. Key Initiatives to Transform Electronics Business
3. Management Structure to Execute Key Initiatives
Sony Corporation 8
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
Sony Corporation 9
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
Sony Corporation 10
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
Sony Corporation 11
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
Sony Corporation 12
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)
Sony Corporation 13
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
Sony Corporation 14
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
Sony Corporation 15
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 .
Sony Corporation 16
Core Businesses: 3. Mobile
Sony Convergence
Sony-only Technology Entertainment Assets Digital Imaging & Game
Technology & Know-How
Sony Corporation 17
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
Sony Corporation 18
Turning around the television business
1. Fixed business cost reductions 2. Operating cost reductions 3. Enhancing product competitiveness
Target: Profitability in FY13
Solid execution of turnaround plan
Sony Corporation 19
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
Sony Corporation 20
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
Sony Corporation 21
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
Sony Corporation 22
Expanding business in emerging markets
Further expansion in rapidly growing emerging markets
Emerging Market Sales Target (Electronics – All)
FY11
1.8 trn yen
2.6 trn yen
FY14
Sony Corporation 23
Expanding business in emerging markets
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%
Sony Corporation 24
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
Sony Corporation 25
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
Sony Corporation 26
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
Sony Corporation 27
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
Sony Corporation 28
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
Sony Corporation 29
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
Sony Corporation 30
Realigning the business portfolio and optimizing resources
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.
Sony Corporation 31
Electronics Corporate Strategy
1. Current Issues
2. Key Initiatives to Transform Electronics Business
3. Management Structure to Execute Key Initiatives
Sony Corporation 32
One Sony
Sony Corporation 33
One Management
Sony Corporation 34
CSO CFO
New Management Structure
CEO
Entertainment Financial Services Electronics
Sony Corporation 35
New Management Structure
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
Sony Corporation 36
New Management Structure
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
Sony Corporation 37
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”
Sony Corporation 38
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.