Sony Corporation

2nd August 2010

Objective and Agenda

Objective To provide background information on Sony Corporation

Agenda
Company Overview
Company Profile
Consolidated Financials Online Marketing Spend Marketing Spend Breakup by Channel Company Strategy Board Members Management

Business Segments Competitive Landscape

Executive Summary
Develops, designs, manufactures and sells various kinds of electronic equipment, instruments, and devices for consumer and industrial markets Repositioned operations previously reported within the Electronics and Game segments and establishing the Consumer Products & Devices, Networked Products & Services and B2B & Disc Manufacturing segments

Sony Corp

Revenues fell in FY2009, however Net Operating Margins are expected to increase in future due to LCD TV and cellular phone turning profitable and boost from restructuring charges along with a decrease in network-related costs Operating income of 31.8 billion was achieved, compared to an operating loss in the previous fiscal year

Planning a major focus on BRIC countries to fuel its growth plans

Consumer Products and Devices

Biggest segment accounting for over 40% of the total revenues Segment as a whole was affected by unfavorable currency exchange rates, sales decreased for
BRAVIA LCD televisions and cameras

Networked Products & Services

Segments

2nd biggest segment accounting for over 20% of the total revenues Operating income in the game business deteriorated despite cost reductions for PS3 hardware and
higher unit sales of PS3 software, reflecting lower unit sales of PS2 software and PSP hardware

B2B & Disc Manufacturing

Includes Sonys B2B businesses, including broadcast- and professional-use products, and the disc
manufacturing business, including Blu-ray Disc, DVD and CD

Decline in segment sales was largely to unfavorable foreign currency exchange rates, as well as
decreased sales of broadcast- and professional-use products Picture- Generated 9.8% of Sonys 2009 revenue Music - Generated 7.1% of Sonys 2009 revenue Financial Services Generated 11.6% of Sonys 2009 revenue
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Company Overview

Sony | Company Overview

Sony Corporation (Sony) is a Japan based electronics products manufacturing company
Develops, designs, manufactures and sell various kinds of electronic equipment, instruments, and devices for consumer and industrial markets
Key Statistics
Ownership Headquarters Founded Employees : Public NYSE, (Ticker: SNE) : Tokyo, Japan : May 7, 1946 : 167,900

Business Segments Organized around seven business segments:

Consumer Product and Devices, network product and services, B2B & Disc Manufacturing, Pictures, Music, Financial Services and Others Has three horizontal platformsthe Global Sales and Marketing Platform, the Manufacturing, Logistics, Procurement and CS (Customer Service) Platform, and the R&D and Common Software Platform

Chairman, CEO and President : Howard Stringer Financial Year End Revenues, Global (FY2009) Revenues, US (FY2009) : 31st March : 7,214 bn ($77.82 bn) : 1,731.6 bn ( $470.5 mn)

Revenue History
88,928 79,457 70,537 63,734 77,825

Operations
The company, along with its subsidiaries, has major operations in Japan, and across many countries in North America, Europe and Asia. Sony has its wide service foot-print in about 200 counties, worldwide Products are marketed throughout the world by sales subsidiaries and unaffiliated distributors, as well as direct sales through the Internet
2005 2006 2007 2008 2009

All figures in $ bn

Source: Annual Report 2009, http://tokyo.usembassy.gov/e/acs/tacs-7126b.html

Sony | Consolidated Financials

Operating income of 31.8 billion was achieved, compared to an operating loss in the previous fiscal year. The Financial Services segment and the Consumer Products & Devices segment in particular, LCD televisions contributed to the improvement in operating results year-on-year. Net Operating Margin are expected to increase in future due to LCD TV and cellular phone turning profitable and boost from restructuring charges along with a decrease in network-related costs
Figures in bn
Operating Revenue Operating Profit Revenue Growth Net Operating Margin

FY08 (A)
7,729.9 -227.8 -6.6% -2.9%

FY09 (A)
7,214.0 31.8 -6.7% 0.4%

FY10 (E)
7,635.7 90.0 5.8% 1.2%

FY11 (E)
7,485.0 255.0 -2% 3.4%

FY12 (E)
7,392.9 300.0

Stock market
Price, 30July 2010 Price, 3 August 2009 Change $31.22 $ 28.62

9%
$40.45 $ 24.52

-1.2% 4.1%

52 Week High 52 Week Low

Share Price Graph: August 2009 August 2010

Launched "Earth F.C.* to Support Worldwide "Public Viewing in Africa" Project During 2010 FIFA World Cup
"Earth F.C." (www.sony.net/earthfc), aims to draw attention to the challenges Africa is facing and to communicate the need for support from around the world

Recalled 535,000 Vaio laptops due to a temperature control defect that may cause excessive heat and distort its shape

Source: Annual Report 2009, googlefinance.com

Sony | Online Marketing Spend

Online Marketing Spend (US)
During 2009, Sony spent approx. $53.5 mn on online media channels in the US Top 10 sites accounted for nearly 66% of the total online spending by the company Spending was highest on MySpace with over $ 18 million Advertising spend on Consumer goods and entertainment industries accounted for 54% of estimated spending by Sony in 2009
Impressions and Estimated Spending by Site/Sub-Site during 2009
Estimated Spending ($ mn)

Site/Sub-Site

MySpace (All) New York Times (General) YouTube (All) Yahoo! Homepage MSN Windows Live Hotmail

18.87 4.62 2.72 2.24 1.75 1.25 1.20 0. 88 0.808 0.803 18.34 53.509

Estimated Spending by Industry :June 2009 June 2010

20% 34% 10%

Yahoo! (General) Amazon (All) Nick.com (All) New York Times Business

9% 6% 6% 7% 8% Entertainment Business to Business Public Services Health

MSN Movies Others

Consumer Goods Automotive Web Media Financial Services

Total

Source: Nielsen, Annual Report, Google

Sony | Marketing Spend Breakup by Channel

Total Media spent (USA) in 2009 was $748.8 million
TV accounted for more than 75% of Sonys marketing budget Media spend on magazine was almost entirely on the National magazine segment Online spend was at the third position Media spend on B2B and Radio was negligible
Sonys Estimated Spending by Media : 2009
76%

Sonys Spending Breakup for TV: 2009

43% 36%

0%
1% 1% TV M a ga zine B 2B 2% 4% 7% 9% Int e rne t R a dio

N e ws pa pe r O ut do o r

16 % 2% 3% N et wo r k T V C ab le T V Sp o t T V Sp anish Lang uag e N et wo r k T V Synd icat ed T V Sp anish Lang uag e C ab le T V

Sonys Spending Breakup for Newspaper: 2009 Sonys Spending Breakup for Radio: 2009
67%

78%

2% 20%
33%

Lo c a l N e ws pa pe r N a t io na l N e ws pa pe r
Netw ork Radio

Spot Radio

N a t io na l S unda y S upple m e nt
Source: Nielsen, Annual Report, Google 8

Sony | Company Focus

Streamlining of Operations

Realigned its reportable segments from the first quarter of the fiscal year ended March 31, 2010 to reflect the Companys reorganization
Repositioned operations previously reported within the Electronics and Game segments and establishing the Consumer Products & Devices, Networked Products & Services and B2B & Disc Manufacturing segments

Future Priorities To continue to transform the company to achieve targets of a 5% operating profit margin and a 10% return on equity (ROE) by the year ending March 31, 2013). To generate growth with consistent profitability in its core hardware businesses particularly digital imaging, television and game businesses To aggressively develop new business including network services To expand by reaching out to new customers in new geographies
Greater investment in BRIC and emerging economies

Source: Annual Report, Google

Sony | Strategy & Growth Areas

Bringing TV and gaming business to profitability along with growing market position Has an innovative new product lineup and an aggressive sales plan
It is developing the next generation of TV display, and is targeting a 20% market share Will launch the Sony Internet TV by autumn 2010

Will strive to leverage PS3s strengths to create new user experiences and generate sales

Continued development of innovative, networked mobile products Developed and launched Qriocity, a new online service platform based upon PSN
Launched its first Full HD 3D-integrated TVs and Blu-ray Disc players in June 2010

Expansion of entry-segment products with increased cost competitiveness into growing markets

To provide customers with the environmentally conscious products To use its technological expertise to help solve environmental challenges
Announced a new set of Green Targets, where it will strive to lower every products power consumption by 30 % versus 2008 levels, with a long-term goal of achieving a Zero Environmental Footprint

Source: Annual Report 2009

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Sony | Board Members

Title Chairman of the Board Sony Corporation Representative Corporate Executive Officer, Chairman, CEO and President Sony Corporation Representative Corporate Executive Officer, Vice Chairman Board Member Board Member Board Member Board Member Board Member Board Member Board Member Board Member Board Member Name Yotaro Kobayashi Sir Howard Stringer

Ryoji Chubachi Yotaro Kobayashi Yoshiaki Yamauchi Sir Peter Bonfield Fujio Cho Ryuji Yasuda Yukako Uchinaga Mitsuaki Yahagi Tsun-Yan Hsieh Roland A. Hernandez

Board Member
Board Member Board Member

Kanemitsu Anraku
Yorihiko Kojima Osamu Nagayama

Source: Annual Report 2009

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Sony | Management
Title Chairman, Chief Executive Officer and President Vice Chairman, Officer in charge of Product Quality & Safety and Environmental Affairs Executive Deputy President, Officer in charge of Manufacturing, Logistics, Procurement and CS Platform Executive Deputy President, Officer in charge of the Consumer Products, Professional Solutions and Device businesses EVP, Officer in charge of Intellectual Property and the Disc Manufacturing business EVP, General Counsel EVP, Officer in charge of the Networked Products and Services businesses EVP, Chief Financial Officer Sir Howard Stringer Ryoji Chubachi Name

Yutaka Nakagawa

Hiroshi Yoshioka

Keiji Kimura

Nicole Seligman Kazuo Hirai

Masaru Kato

Source: Annual Report 2009

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Sony | Geography and Business Segment Based

Sector Performance:
All the business lines of the company reported weak revenues as a result of the negative effect of the appreciation of

the yen against the US dollar, downturn in business environment and decline in equity in net income (loss) for Sony Ericsson
Europe, Japan and USA together comprised three-fourth of Sonys revenue Top three business segments- Consumer Products & Devices, Network Products & Services and B2B & Disc

manufacturing generated more than 65% of Sonys 2009 revenue

2009 Revenue Breakup by Geography

2009 Revenue Breakup by Business Segments

26%

26%

24%

24%

Europe

Japan

US

Other Countries

Source: Annual Report 2009

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Business Segments

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Business Segment | Consumer Products & Devices (1/2)

Includes Sonys televisions, digital imaging, audio-video, semiconductors, components and other

businesses
Segment as a whole was affected by unfavorable currency exchange rates

Segment Performance:
The operating loss narrowed due to: Improvement in the cost of sales ratio Reduction in selling, general and administrative expenses

Revenue and profitability are expected to improve in FY 2010 and FY 2011

Figures in bn
Revenue Revenue Growth Operating Income Operating Margin

FY08 A
4,031.5 -17.47% -115.1 -2.9%

FY09 A
3,227.7 -19.94% -46.5 -1.4%

FY10 E
3,655.9 13.27% 1.0 0%

FY11 E
3,624.5 -0.86% 99.0 2.7%

Targets and Strategy: To regain leadership position in LCD TV market- targeting 20% worldwide market share (unit basis) by FY2012

Source: Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware & Equipment) July 2010

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Business Segment | Consumer Products & Devices (2/2)

Sales decreased for the following , reflecting the contraction of these markets:
BRAVIA LCD televisions, due to declines in unit selling prices Handycam video cameras Cyber-shot compact digital cameras

Products contributing to the improvement in operating results included *BRAVIA LCD televisions and Cyber-shot

compact digital cameras and image sensors, which saw an increase in sales.
*BRAVIA LCD televisions and Cyber-shot compact digital cameras the benefits of cost reduction efforts exceeded the impact of the decrease in sales

Segments
Televisions

Figures in bn
Revenue Operating Margin Revenue

FY08 A
1,275.7 -10.0% 863.8 10.1% 555.7 -0.3% 267.2 8.2% 623.9

FY09 A
1,005.8 -7.3% 679.2 13.7% 516.6 0.0% 277.9 10.4% 479.1

FY10 E
1,335.3 -1.5% 642.2 8.4% 516.6 0.0% 277.9 10.8% 530.0

FY11 E
1,335.3 0.0% 613.8 8.5% 516.6 0.0% 277.9 10.8% 530.0

Digital Imaging
Operating Margin
Revenue

Audio and Video

Operating Margin Revenue

Semiconductors
Operating Margin Revenue

Components
Operating Margin

0.0%

4.2%

5.7%

5.7%

Source: Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware & Equipment) July 2010

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Business Segment | Networked Products & Services

Segment consists of Sonys game business, PC and other network related businesses The deterioration of segment sales was attributable largely to decreases for the game business and for VAIO PCs.

Segment Performance:
Sales declined 10.2% year-on-year to reach 1,575.8 billion Operating loss improved 4.4 billion Y-O-Y despite a deterioration of operating income in the game business due to : Improvement in the profitability of Walkman digital music players and other products Revenue is expected to improve in FY 2010 followed by a decline in FY 2011 but profitability is projected to increase
Segments Figures in bn
Revenue

FY08 A
1,755.6
-16.74%-

FY09 A
1,575.8
10.24%

FY10 E
1,643.33
4.29% -49.0 -3.0% 801.4 0.0% 733.0 -1.2%

FY11 E
1,492.3
-9.19% -13.0 -0.9% 621.2 1.3% 778.0 0.6%

Networked Products & Services

Revenue Growth Operating Income Operating Margin Revenue

-87.4 -5.0% 984.9 -5.9% 699.9 -2.9% -

-83.1 -5.3% 840.7 -6.8% 670.9 -3.9%

Sales in the Game business declined due to: Unfavorable foreign currency exchange rates Declines in unit sales of PSP hardware and playstation2 software

Game
Operating Margin

PC and Other Networked Business

Revenue Operating Margin

Source: Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware & Equipment) July 2010

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Business Segment | B2B & Disc Manufacturing

Segment encompasses Sonys B2B businesses, including broadcast and professional -use products, and the

disc manufacturing business, including Blu-ray Disc, DVD and CD.

The deterioration of segment sales was attributable largely to unfavorable foreign currency exchange rates, as well as

decreased sales of broadcast- and professional-use products

Segment Performance:
Sales in the B2B & Disc Manufacturing segment decreased 10.0% year-on-year, to 504.2 billion
Reported an operating loss of 7.2 billion, a deterioration of 13.7 billion year-on-year Revenue is expected to improve in FY 2010 and FY 2011

Sales in the broadcast and professional-use products declined due to: due to a deterioration of the business environment in developed countries decreases in unit selling prices in the disc manufacturing business

Segments

Figures in bn
Revenue

FY08 A
560.0 -32.9%

FY09 A
504.2 -10.0%

FY10 E
554.6 3 10.0%

FY11 E
582.3 5.0%

B2B & Disc Manufacturing

Revenue Growth

Operating Income
Operating Margin

6.5
1.2%

-7.2
-1.4%

-5.0
-0.9%

6.0
1.0%

Source: Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware & Equipment) July 2010

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Business Segment | Pictures

Segment comprises the motion pictures and television programming, and other businesses of Sony

Pictures Entertainment Inc. (SPE), which is based in the United States

Decline in segment sales was due primarily to the appreciation of the yen against the U.S. dollar.

Segment Performance:
On a U.S. dollar basis, segment sales increased 7.0%. primarily due to : Higher worldwide theatrical and home entertainment revenues from the current years film slate Increased television revenues due to higher advertising revenues from a number of international (non-North

America) channels.
Operating income in the segment increased 43.1% year-on-year, to 42.8 billion. Revenue and profitability are expected to decline in FY 2010 and FY 2011

Increase in operating income was primarily due to: Sale of a portion of SPEs equity interests in both a Latin American premium pay television business and a U.S. cable network Sale of all of its equity interest in a Central European premium pay television business

Segment

Figures in bn
Revenue Revenue Growth

FY08 A
717.5 -16.4% 29.9 4.2%

FY09 A
705.2 -1.7% 42.8 6.1%

FY10 E
705.0 0.0% 35.0 5.0%

FY11 E
705.0 0.0% 35.0 5.0%

Pictures
Operating Income Operating Margin

Sony Pictures commanded 13.6% of North American theatrical box office revenue market share in FY2009

Source: Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware & Equipment) July 2010

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Business Segment | Music

Sonys Music segment is primarily comprised of the music recording businesses of U.S. -based Sony Music

Entertainment (SME) and Sony Music Entertainment (Japan) Inc. (SMEJ).

Music segment is struggling with owing to the appreciation of the yen against the U.S. dollar and the continued

contraction of the physical music market.

Segment Performance:
Sales in the Music segment rose 35.0% year-on-year, to 522.6 billion. Operating income rose 31.1% year-on-year, to 36.5 billion.

Increase in operating income was primarily due to: Improved results at SME and SMEJ, which reflected contributions from hit products including Michael Jackson catalog product Decline in restructuring expenses from the previous fiscal year

Segment

Figures in bn
Revenue Revenue Growth

FY08 A
387.1 10.60% 27.8 7.2%

FY09 A
522.6 35.00% 36.5 7.0%

FY10 E
523.0 0.08% 37.0 7.1%

FY11 E
523.0 0.00% 37.0 7.1%

Pictures
Operating Income Operating Margin

SME commanded 28.6% of US market share and SMEJ commanded 17.4% of Japanese market share and SMEJ in FY2009

Source: Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware & Equipment) July 2010

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Business Segment | Financial Services

Segment consists of the financial services businesses of Sony Financial Holdings Inc. (SFH) and its

consolidated subsidiaries, including Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. and Sony Bank Inc., as well as Sony Finance International Inc.
Financial Services revenue increased 58.2% Y-o-Y, to 851.4 billion mainly due to higher revenue at Sony Life.
Sony Life also reported higher revenue from insurance premiums, owing to a steady increase in policy amount in force.

Segment Performance:
Operating income amounted to 162.5 billion, an improvement of 193.7 billion year-on-year

Increase in operating income was primarily due to: Improvement in net valuation gains from investments in convertible bonds Decline in the provision of policy reserves Marked decrease in impairment losses on equity securities Rise in the Japanese stock market

Segment

Figures in bn
Revenue Revenue Growth

FY08 A
538.2 -7.38% -31.2 -5.8%

FY09 A
851.4 58.19% 162.5 19.1%

FY10 E
851.0 -0.05% 130.0 15.3%

FY11 E
851.0 0.00% 130.0 15.3%

Pictures
Operating Income Operating Margin

Source: Annual Report 2009, Credit Suisse:Consumer Electronics (Technology Hardware & Equipment) July 2010

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Sony | SWOT Analysis

Weaknesses Strengths
Worldwide Presence In 2009, Other areas accounted for 26.5%, followed by 25.7% from Europe, 24.2% from Japan and 23.6% from the US Diversified Business Lower Returns in terms of poor profitability ratios. In 2009, it posted attenuated ROE as -3.3% over 10.662% in 2008. This was below the S&P 500 companies average of 12.9%. Poor Liquidity Position

Opportunities
Strategic Acquisition Demand for Video Consoles Growth in LCD Display Market In July 2009, Sony signed a definitive agreement with Sharp Corporation for a joint venture company for manufacturing and selling large-sized LCD panels and modules

A company like Sony Corporation, with a huge global presence, diversified businesses and Strong brand equity, operating in a highly competitive market will need to capitalize on opportunities like the growing video console and LCD market. It has been suffering from lower Returns and poor Liquidity and efficiency position. To maintain leadership, it needs to fight counterfeit products among tightening regulations

Operational Inefficiency

Threats
Competitive Pressures Counterfeit Products Stringent Regulations

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Sony | Recent News

29th, July, 2010

Announced results for the 3rd quarter ended 30th June 2010 Reported sales of $ 18,663 million , an Y-o-Y increase of 3.8% and Operating income of $ 753 million as compared to an operating loss in the same quarter of the previous fiscal year

20th, July, 2010

Tohoku University and Sony Corporation jointly develop the worlds first blue-violet ultrafast pulsed semiconductor laser with 100 watt output Tohoku University and Advanced Materials Laboratories, Sony Corporation have succeeded in jointly developing a blue-violet ultrafast pulsed semiconductor laser*2 with dramatically improved peak laser beam output levels that are 100 times that of the world's current highest levels.
13th, July, 2010

Sony expands silicon tuner module lineup and begins to ship samples to grow sales Sony Corporation announced that it will begin to ship samples of its extensive lineup of silicon tuner modules, which incorporate Sony's silicon turner IC that conform to worldwide broadcast systems. Sony will build up a global business by launching 40 small, high-performance silicon tuner modules, which incorporate its proprietary radio frequency circuit technology

22nd, July, 2010

Sony develops 1.2kWh-class energy storage module using lithium-ion rechargeable batteries made from olivine-type lithium iron phosphate Sony today announced the development of an energy storage module using lithium-ion rechargeable batteries made with olivinetype lithium iron phosphate as the cathode material. Sample shipments of the new module are scheduled to begin from June, 2010. The newly-developed module is an energy storage module with 1.2kWh-class capacity

Source: Company Website

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Competitive Analysis

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Competitive Analysis | Electronics*

Sonys consumer products segments performance was the worst among the peer group; although rest of the players reported decline in revenues, they maintained profitability
Company**
Revenue (FY 2009) Revenue Growth y-o-y Operating Margin Strategy

Sony
$31.5 bn

Panasonic***
$36.7 bn

Phillips
$11.8 bn

LG
$16.5 bn

(20%)

(9%)

(22%)

na

Loss of $504 mn

3%

4%

na

Partner with IT companies to offer innovative products and services

Planning to launch Sony Internet TV in collaboration with Google

Expand its flat-panel TVs business, including both plasma and LCD Innovating existing product lines
Launch plasma TVs that deliver full HD 3D images in 2010

Improve geographical coverage and strengthen position in Brazil, Russia, India and China through managerial focus and investment LCD TV, audio & video Multimedia, peripherals & accessories

Continue to focus on technology and stylish design for superior products

Major Products

LCD TV, digital camera, home video, portable audio

Flat panel TV, blue ray disc recorder, automotive electronics

LCD TV, plasma TV, Home audio and video, optical storage

* Previous years electronics segment is reorganized into Consumer Products & Devices segment by Sony ** All figures in USD *** Panasonic acquired Sanyo Electric Company in FY 2009
Source: Company websites 25

Competitive Analysis | Game*

All the players reported decline in revenues in FY 2009; major focus of Sony and its competitors is on innovative products
Company
Revenue (FY 2009) Revenue Growth yo-y

Sony
$9.1 bn (15%)

Nintendo
$15.5 bn (22%)

Microsoft
$7.7 bn (6%)

Operating Margin

NA

25%

2%

Strategy

Focus on innovation to deliver new and exciting user experiences to customers Release own 3D game titles and continue to actively support the development of 3D games by third-party software developers PlayStation PlayStation3 PlayStation Portable

Focus on new and innovative products

Focus on innovation in hardware architecture, new developer tools, online gaming services, and continued strong exclusive content from its own game franchises Xbox 360 console Xbox Live Zune

Major Products

Wii Nintendo DS Nintendo DSi

* Previous years Game segment is reorganized into Network Products & Services segment by Sony ** All figures in USD
Source: Company websites 26

Competitive Analysis | Pictures

Sonys pictures segment reported least decline in revenues among peers, however its profitability is lowers than Warner and News Corp
Company
Revenue (FY 2009) Revenue Growth y-o-y Operating Margin Strategy

Sony
$7.6 bn

Disney
$6 bn

Warner Bros
$11 bn

News Corp
$6 bn

(1.7%)

(16%)

(3%)

(11%)

6%

3%

10%

14%

Create a diverse slate of entertainment and develop new ways such as 3D to reach consumers around the world Cloudy With a Chance of Meatballs Julie & Julia District 9 Zombieland

Heavy use of technology to bring down the cost of making, marketing and distributing the content

Streamline the operations through restructuring and outsourcing Harry Potter and the Half-Blood Prince The Hangover Sherlock Holmes The Blind Side and Invictus

NA

Major Movies (2009)

WALL-E The Chronicles of Narnia: Prince Caspian

Marley & Me and Taken Night at the Museum Battle of the Smithsonian X-Men Origins

Source: Company websites

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Competitive Analysis | Music

Sonys music segment reported most healthy growth in revenues, however profitability is lower than 2 of its biggest competitors Universal Music and EMI
Company
Revenue (FY 2009) Revenue Growth y-o-y Operating Margin Strategy

Sony
$5.51 bn

Universal Music
$6.1 bn

EMI Music
1.6 bn

Warner Music
$3.2 bn

41%

(6%)

7%

(9%)

7%

13%

19%

4%

Focus on developing both well-known and emerging recording artists

na

Reposition itself as a comprehensive rights management company that can take full advantage of all global opportunities in all markets for music Angel Astralwerks Blue Note Capital Nashville Mute

Evaluate opportunities to add to its catalog or acquire and make investments in companies engaged in similar businesses Focus on digital distribution of content Asylum Atlantic Bad Boy Cordless Rhino

Major Brands

Arista Columbia Nashville Legacy Masterworks Epic

A&M/Octone The Verve Music Group Decca Label Group Universal Records South Universal Music Group Nashville

Source: Company websites

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Thank you

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