Music Segment (SMEJ)
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Sony IR Day 2018 Music Segment (SMEJ) May 22, 2018 Business Executive Sony Corporation Representative Director Director of Board Chief Executive Officer CFO, Corporate EVP Sony Music Entertainment (Japan) Inc. Sony Music Entertainment (Japan) Inc. Michinori Mizuno Toshihiro Konno Agenda Music Segment (SMEJ) 1.Business Outline 2.Mid-Term Vision 3.FY17 Results / FY18 Forecast Sony IR Day 2018 1. Business Outline Sony Corporation InvestorSony IR RelationsDay 2018 Company Profile Music Segment (SMEJ) Name: Sony Music Entertainment (Japan) Inc. Established: March, 1968 Location: 4-5 Rokubancho, Chiyoda-ku, Tokyo Representative Director: Michinori Mizuno Number of Subsidiaries: Approximately 20 Revenue Breakdown Music Other Physical Digital Artist Management FY17 Music Publishing Anime Mobile Game Sony IR Day 2018 50 Year Journey 〜 Business Diversity Starting from CBS/Sony 〜 Music Segment (SMEJ) Strengthen Music Business by Vertical Integration Diversify Business by Horizontal Expansion 1968 Est. CBS/Sony Records Inc. ʼ97 began consignment sales for other companies Began publishing business Began music distribution business Music Biz ʼ75 began record warehouse Built record / logistics business ʼ87 in-house jacket design factory ʼ78 built recording studios Began Zepp operations ʼ17 first overseas Zepp Package Solution Biz Live Solutions Biz Artist / Talent management Managed comedian talent Voice actor management Talent Managem ent Biz ʻ97 est. SPE VISUAL WORKS Began distribution of Fate/Grand Order Anime Biz Production Studio Mobile ʼ03 changed name App to Aniplex, increased Game investment Global Biz Distributi ʻ78 est. Sony Creative Products on ʼ05 est. US-based company Character Biz Sony IR Day 2018 Business Model Music Segment (SMEJ) Digital Real Content Artists, songs, recorded music, anime, video, mobile game, characters, etc. Live Sony IR Day 2018 2. Mid-Term Vision Sony Corporation InvestorSony IR RelationsDay 2018 Mid-term Vision Music Segment (SMEJ) Road to General Entertainment Company ◆ Creating and Maximizing Hits ✓ Strengthen music and anime IP ✓ Leverage IP Sony IR Day 2018 Creating and Maximizing Hits 〜 Strengthen Music and Anime IPMusic 〜 Segment (SMEJ) © 2018 Peanuts Worldwide LLC ©2016 川原 礫/KADOKAWA アスキー・メディアワークス刊/ SAO MOVIE Project Sony IR Day 2018 Creating and Maximizing Hits 〜 Leverage IP 〜 Music Segment (SMEJ) Expand Business Domain Theatrical Mobile Game (Example: Fate Series) TV Broadcast ©TYPE-MOON / FGO PROJECT ©TYPE-MOON・ufotable・FSNPC ©TYPE-MOON/Marvelous, Aniplex, Notes, SHAFT IP Event Music Visual Package Media Sony IR Day 2018 Creating and Maximizing Hits 〜 Leverage IP 〜 Music Segment (SMEJ) Sustainable Growth in Mobile Game Business ✔ Fate/Grand Order Retention Initiatives ✔ New Hit IP-Based Products ⓒ乃⽊坂46LLC ©Magica Quartet/Aniplex・Magia Record Partners ©Seed&Flower LLC/Y&N Brothers Inc. ©enish,Inc. ©TYPE-MOON / FGO PROJECT Sony IR Day 2018 Mid-term Vision Music Segment (SMEJ) Road to General Entertainment Company ◆Overseas Expansion ◆ New Businesses Sony IR Day 2018 Overseas Expansion - countries/regions Music Segment (SMEJ) France China (Shanghai) US (LA) Based Company Germany Representative Office Live Venues in Asia New Taipei Singapore Kuala Lumpur Australia Sony IR Day 2018 New Businesses Music Segment (SMEJ) Sports Event AI VR ©Sony Music Entertainment(Japan)Inc. ©Intelligent Machines Amazes You Inc. ©Aisii Inc. Sony IR Day 2018 3. FY17 Results / FY18 Forecast Sony Corporation InvestorSony IR RelationsDay 2018 FY17 Operating Profit Variance from FY16 Music Segment (SMEJ) Gain on Sale of Real Estate Music/ Other Mobile Anime Game Operating Income FY16 FY17* FY17 (Excludes One- Time Factor) Sony IR Day 2018 FY18 Operating Profit Forecast Variance from FY17 Music Segment (SMEJ) Mobile Music/ Game Anime Other Operating Income FY18 FY17* (Excludes One- Forecast Time Factor) Sony IR Day 2018.