A Progressive Digital Media business COMPANY PROFILE Sony Corporation REFERENCE CODE: 881B16EF-3BEC-4BDD-B10A-26FAB18DEC3B PUBLICATION DATE: 13 Nov 2018 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED Sony Corporation TABLE OF CONTENTS TABLE OF CONTENTS Company Overview ........................................................................................................3 Key Facts.........................................................................................................................3 Business Description .....................................................................................................4 History .............................................................................................................................7 Key Employees .............................................................................................................44 Key Employee Biographies .........................................................................................46 Major Products & Services ..........................................................................................50 SWOT Analysis .............................................................................................................51 Top Competitors ...........................................................................................................56 Company View ..............................................................................................................57 Locations And Subsidiaries ........................................................................................58 Sony Corporation Page 2 © MarketLine Sony Corporation Company Overview Company Overview COMPANY OVERVIEW Sony Corporation (Sony or 'the group') is one of the leading manufacturers of audio, video, imaging, game, communications, and information technology products for the consumer and professional markets. The group operates in electronics, entertainment and financial services sectors. Sony offers a wide range of products, including mobile phones, tablets, accessories, applications, home and portable game consoles, compact digital cameras, interchangeable single-lens cameras, video cameras, broadcast- and professional-use products, televisions (TVs), audio and video products, semiconductors, and components. It also offers services such as network services relating to game, video, and music content, and financial services. The group operates through nine business segments: game and network services, home entertainment and sound, mobile communications, financial services, pictures, devices, imaging products and solutions, music, and all other. Sony operates across Asia, Africa, Europe, Latin America, North America and Oceania. It is headquartered in Tokyo, Japan. The company reported revenues of (Yen) JPY8,543,982 million for the fiscal year ended March 2018 (FY2018), an increase of 12.4% over FY2017. In FY2018, the company’s operating margin was 8.5%, compared to an operating margin of 3.7% in FY2017. In FY2018, the company recorded a net margin of 5.7%, compared to a net margin of 1% in FY2017. The company reported revenues of JPY1,953,624.0 million for the first quarter ended June 2018, an increase of 0.1% over the previous quarter. Key Facts KEY FACTS Head Office Sony Corporation 1-7-1 Konan 1-Chome Minato-ku Tokyo Tokyo Tokyo Tokyo JPN Phone 81 3 67482111 Fax Web Address www.sony.net Revenue / turnover (JPY Mn) 8,543,982.0 Revenue (USD Mn) 77,097.0 Financial Year End March Employees 117,300 Tokyo Stock Exchange Ticker 6758 Sony Corporation Page 3 © MarketLine Sony Corporation Business Description Business Description BUSINESS DESCRIPTION Sony is engaged in the development, design, manufacture and sale of electronic equipment, instruments, and devices for the consumer, professional and industrial markets as well as game consoles and software. The group operates in approximately 200 countries and territories. Sony's primary manufacturing facilities are located in Asia including Japan. The group also uses third-party contract manufacturers for certain products. The group operates through nine segments*: Game and Network Services, Home Entertainment and Sound, Mobile Communications, Financial Services, Pictures, Devices, Imaging Products and Solutions, Music, and All Other. The Game and Network Services segment offers hardware products such as home and portable game consoles, including the PlayStation4 (PS4), PlayStation3 (PS3) and PS Vita. The segment also provides network services relating to game, video, and music content through its subsidiary, Sony Interactive Entertainment LLC (formerly Sony Network Entertainment International LLC). In FY2018, the Game and Network Services segment recorded revenues of JPY1,848,298 million, which accounted for 21.7% of the group’s total revenues. The Home Entertainment and Sound segment encompasses TVs such as liquid crystal display (LCD) TVs, and audio and video, including Blu-ray Disc players/recorders, home audio, headphones and memory-based portable audio devices. In FY2018, the Home Entertainment and Sound segment recorded revenues of JPY1,221,235 million, which accounted for 14.3% of the group’s total revenues. Through the Mobile Communications segment, Sony is engaged in the research, development, design, marketing, sales, manufacturing, distribution and customer services for mobile phones, tablets, accessories and applications. The group also offers Internet broadband network services to subscribers through So-net (formerly Sony Communication Network Corporation). Moreover, it creates and distributes content through its portal services to various electronics products platforms such as personal computers (PCs) and mobile phones. In FY2018, the Mobile Communications segment recorded revenues of JPY713,916 million, which accounted for 8.4% of the group’s total revenues. The Financial Services segment operates through a wholly-owned subsidiary, Sony Financial Holdings (SFH). SFH is a holding company for Sony Life, Sony Bank, and Sony Assurance. SFH integrates various financial services offered by Sony including insurance, savings and loans. SFH engages in the insurance and banking business through Sony Life, a Japanese life insurance company; Sony Assurance, a Japanese non-life insurance company; and Sony Bank, a Japanese internet-based bank. In FY2018, the Financial Services segment recorded revenues of JPY1,221,235 million, which accounted for 14.3% of the group’s total revenues. Sony Corporation Page 4 © MarketLine Sony Corporation Business Description The Pictures segment consists of motion pictures production, TV productions, and media networks. Motion pictures include global production, acquisition and distribution of live-action and animated motion pictures and direct-to-video content. The segment also includes operations of Sony Pictures Entertainment (SPE), a subsidiary engaged in motion picture related activities in several countries. SPE's principal motion picture production organizations include Columbia Pictures, TriStar Pictures, Screen Gems, Sony Pictures Animation and Sony Pictures Classics. SPE also operates Sony Pictures Imageworks (a visual effects and animation studio) and manages a studio facility, Sony Pictures Studios, which includes post production facilities. TV productions includes the production, acquisition and distribution of TV programming, including scripted series, unscripted reality or light entertainment, daytime serials, game shows, animated series, made for TV movies and miniseries and other programming. SPE also produces local language programming and licenses SPE owned programming and formats around the world. Media networks includes digital network and TV operations. SPE's TV networks include Sony Pictures Networks India (SPN) (formerly Multi Screen Media Private Limited), which operates TV networks in India, and a controlling interest in Game Show Network (GSN), which operates a US based cable network and an online game business. Digital networks include Crackle, a multi-platform video entertainment network focusing on premium video content. In FY2018, the Pictures segment recorded revenues of JPY1,010,173 million, which accounted for 11.8% of the group’s total revenues. The segment includes semiconductors and components categories. Under the semiconductors category, the group offers charge-coupled devices (CCDs), complementary metal oxide semiconductor (CMOS) image sensors, logical system integrations (LSIs) and other semiconductors. Components category includes batteries, audio/video/data recording media, storage media and optical pickups. In FY2018, the Devices segment recorded revenues of JPY726,892 million, which accounted for 8.5% of the group’s total revenues. The Imaging Products and Solutions segment consists of digital imaging products and professional solutions categories. Digital imaging products include compact digital cameras, video cameras, and interchangeable single-lens cameras. Professional solutions include broadcast- and professional-use products. In FY2018, the Imaging Products and Solutions segment recorded revenues of JPY647,163 million, which accounted for 7.6% of the group’s total revenues. The Music segment comprises operations of Sony Music Entertainment (SME); Sony Music Entertainment Japan (SMEJ); and a US subsidiary** in the music publishing business, Sony/ATV Music Publishing (Sony/ATV). SME develops, produces and distributes recorded music in